American Bank First to Offer Health Savings Accounts in the Lehigh Valley.

ALLENTOWN, Pa. -- American Bank (NasdaqSC:AMBK) today announced that it is now offering Health Savings Accounts to consumers as an alternative method to save and pay for health care. The account, commonly referred to as an HSA, enables individuals to pay for current health expenses and save for future qualified medical expenses. American Bank is the first financial institution in the Lehigh Valley area to offer this type of account directly to consumers.

In order to be eligible for an HSA, an individual must be covered by an HSA-qualified High Deductible Health Plan (HDHP) and must not be covered by other health insurance that is not an HDHP. Contributions made to an HSA cannot exceed the deductible of an individual's HDHP and can be made in any amount or frequency. Employers are also eligible to make contributions to an individual's HSA.

American Bank's Health Savings Account has an industry-leading 3.00% annual percentage yield (APY) on balances of $1,000 or more and no maintenance service or plan charges. Consumers will be able to access their funds conveniently using the HSA Convenience Checking. The HSA Convenience Checking, like the Health Savings Account, has no maintenance service or plan charges and also has check-writing privileges and free checks.

President and CEO Mark Jaindl stated, "By being the first financial institution to offer this type of account in our area, we hope to assist those interested in learning more about HSAs and educate them about the advantages of having an HSA to pay for future medical expenses."

Jaindl continued, "The advantages of having an HSA are numerous - flexibility, control, portability and ownership. The owner of the account decides how much to contribute and which expenses to pay from the account, giving them complete control over the funds. HSAs are completely portable so individuals can be assured of holding on to their HSA even if they change jobs, move or change their marital status. Finally, there are no 'use it or lose it' rules for HSAs. The funds remain the account from year to year, just like an IRA."

Further information about American Bank's new Health Savings Account is available by visiting their location on Tilghman Street in Allentown or calling a member of their Customer Service team by phone at 888-366-6622.

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 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.