American Bank Declares Quarterly Dividend.

ALLENTOWN, Pa. -- American Bank, Inc. (NasdaqSC:AMBK), the parent company of American Bank, today announced that its Board of Directors has declared a quarterly dividend of $0.04 per share of common stock to shareholders of record on October 13, 2006 and payable on October 27, 2006.

In addition, American Bank announced that the Company will continue its Dividend Reinvestment Plan, which allows shareholders to purchase additional shares of American Bank Inc. common stock at a 5% discount to the average of the closing "bid" and "ask" price on the Record Date.

American Bank, Inc. common stock last traded at $7.96 per share. American Capital Trust I Preferred Securities last traded at $9.25.

About American Bank

American Bank offers a complete selection of banking services that includes checking, money market, savings, certificates of deposit, consumer and commercial loans, free personal online bill payment, credit cards and VISA debit cards. Pcbanker.com delivers a full range of real-time Internet banking, insurance and discount brokerage services, while consistently offering some of the best loan and deposit rates in the United States. American Bank has been recognized as one of the top Internet banks in the country by Gomez Advisors, Inc and has received the Bankrate.com(R) Top Tier award for consistently offering annual percentage yields (APYs) that were among the highest reported. American Bank is FDIC insured.

American Bank Online and pcbanker.com are registered trade marks for the Internet financial services provided by American Bank, a state-chartered, FDIC insured full-service financial institution serving customers throughout the United States. American Bank is a member of the Federal Reserve System.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

Statements in this press release regarding American Bank's business which are not historical facts, including expectations regarding future financial results, are "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materially from such statements.