American Bank Reports 20.1% Increase in Earnings for the Year in 2002 and Receives Regulatory Approval for the Holding Company Reorganization.Business Editors SILVER SPRING, Md.--(BUSINESS WIRE)--Jan. 31, 2003 American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Bank (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :BKMD.OB), Silver Spring, Maryland Not to be confused with Silver Springs. Silver Spring is an urbanized, unincorporated area in Montgomery County, Maryland, USA. After Baltimore and Columbia, Silver Spring is the third most populous Census Designated Place in Maryland. , announced net income for the year ended December December: see month. 31, 2002 of $1,039,198 (or $0.48 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share of common stock), a 20.1% increase from net income of $865,003 (or $0.41 per fully diluted share of common stock) for the same period in 2001. Phillip Phillip is a variant of the name Philip. It may refer to: Given name:
Area, 52,586 sq mi (136,198 sq km). Pop. , the conversion to a new data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a system and proceeding with the formation of a holding company. Of course, we also incurred unanticipated expenses this year related to the proxy contest Proxy contest A battle for the control of a firm in which a dissident group seeks, from the firm's other shareholders, the right to vote those shareholders' shares in favor of the dissident group's slate of directors. Also called proxy fights. . The approximate pre-tax costs for these items was $523,000. Excluding these costs, net income for the year of 2002 would have been approximately $1,360,000, which would represent a 57.2% increase in earnings as compared to the prior year. We are confident that our investment in the Bank's business plan will continue to bear positive results." Net income for the three months ended December 31 2002 was $212,529 (or $0.10 per fully diluted share of common stock), as compared to net income of $237,277 (or $0.11 per fully diluted share of common stock) for the same period in 2001. Net income for the three month period decreased primarily due to the planned expenses incurred for the Bank's conversion to its new data processing system. In addition, the Bank also incurred planned expenses for the previously announced startup of the leasing division and the transition to a holding company structure. For the year ended December 31, 2002, net interest income before the provision for loan losses increased by $840,000 to $5,091,000. In addition, the provision for loan losses decreased to $291,218 for 2002, as compared to $460,966 during the same period in 2001. For the year ended December 31, 2002, other income increased by $867,000 due primarily to the increase in gains recognized on the sale of mortgage loans originated by the mortgage division. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased by $1,585,000. The increased operating expenses includes increases in compensation expenses primarily due to more commissions paid to loan officers in the mortgage division (which correlates to the increase in gains from the sale of loans) and increased staffing, costs associated with the moving of our corporate headquarters, conversion of our data processing system, the startup of the leasing division and costs associated with the formation of a holding company. The increased costs also reflect the proxy contest in the first quarter of the year. At December 31, 2002, American Bank had total assets of $179.8 million, deposits of $125.5 million and stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. of $15.0 million, as compared to $154.3 million, $104.4 million and $14.2 million, respectively, at December 31, 2001. Deposits increased by $21.1 million during 2002. Core deposits increased by $5.4 million, while certificates of deposit increased by $15.7 million during this period. Holding Company Formation American Bank also announced receipt of the required regulatory approvals for the holding company formation. The Bank has formed American Bank Holdings, Inc., under the laws of Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). , to serve as the savings and loan savings and loan n. a banking and lending institution, chartered either by a state or the Federal government. Savings and loans only make loans secured by real property from deposits, upon which they pay interest slightly higher than that paid by most banks. holding company for American Bank. The holding company reorganization is subject to American bank stockholder approval. American Bank intends to hold a special meeting of stockholders on March 11, 2003 for the purposes of approving the holding company reorganization. Dividend Declared The American Bank Board of Directors declared a first quarter 2003 dividend of six cents ($0.06) per share. The dividend will be paid on February 28, 2003 to stockholders of record as of February 14, 2003. Given the positive results from the past year, the Board of Directors increased the quarterly cash dividend to $0.06 from the previous $0.04 per share. Corporate Overview American Bank operates four full-service offices located at 1700 Rockville Pike pike, in zoology pike, common name for the family Esocidae, freshwater game and food fishes of Europe, Asia, and North America. The pike, the muskellunge, and the pickerel form a small but well-known group of long, thin fishes with spineless dorsal fins, , Rockville, Maryland Rockville is the county seat of Montgomery County, Maryland, United States. According to the 2006 census update, the city had a total population of 59,114, making it the second largest city in Maryland. , 5600 Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). Avenue, Washington D.C., in the SuperFresh market at 12028 Cherry Hill Cherry Hill, township (1990 pop. 69,319), Camden co., W central N.J.; name was changed from Delaware township to Cherry Hill in 1961. Largely residential, Cherry Hill has been marked by great development and housing growth, especially since the 1970s. Road, Silver Spring, Maryland and in the SuperFresh market at 3301 North Ridge Road The name Ridge Road can refer to multiple streets and roads. Canada
Customers also can access American Bank through its web site at http://www.americanfsb.com/home.html. Forward Looking Statements This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , including those regarding the projected performance of American Bank. These statements, which constitute forward-looking information, within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, involve significant risks and uncertainties. Actual results may differ materially from any forward-looking information discussed in this press release. Factors that might cause such differences include, but are not limited to: fluctuations in interest rates, government regulations and economic conditions and competition in the geographic and business areas in which American Bank conducts its operations, and other similar conditions affecting the Bank's operations, pricing, products, and services. Except as required by law, American Bank disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements in this press release to reflect future events or developments. For additional information regarding American Bank, please refer to American Bank's public disclosure documents. This document does not constitute an offer of any securities for sale. A Registration Statement relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the American Bank Holdings, Inc. securities to be issued in the reorganization has been filed with the Securities and Exchange Commission and has become effective. Investors and security holders are urged to read the proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. / prospectus, because it contains important information. A definitive proxy statement / prospectus will be sent to security holders of American Bank seeking their approval of the transaction. Investors and security holders may obtain a free copy of the definitive proxy statement / prospectus and other documents filed with the Commission by American Bank Holdings, Inc. and American Bank at the Commission's web site at www.sec.gov. The definitive proxy statement / prospectus and other documents may also be obtained for free by directing a request to: American Bank 12211 Plum Orchard Drive, Suite 300 Silver Spring, Maryland 20904 Attn: John M. Wright American Bank Holdings, Inc 12211 Plum Orchard Drive, Suite 300 Silver Spring, Maryland 20904 Attn: John M. Wright American Bank and its directors and executive officers may be deemed to be participants in the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of proxies of American Bank's shareholders to approve the transaction. A detailed list of the names and interests of American Bank's directors and executive officers, including their beneficial interest in American Bank common stock will be set forth in the definitive proxy statement / prospectus to be sent to American Bank stockholders and filed by American Bank Holdings, Inc. with the Commission.
Balance Sheet Data:
Balance Balance
12/31/02 12/31/01
------------- -------------
Total assets $179,824,931 $154,268,937
Loans receivable, net 129,334,650 109,810,257
Foreclosed real estate, net 526,478 786,716
Deposit accounts 125,476,021 104,353,094
Total borrowed funds 33,075,000 29,090,000
Total stockholders' equity 14,991,514 14,194,676
Operating Data:
Year ended Year ended
Dec. 31, Dec. 31,
2002 2001
------------- -------------
Total interest income $10,373,005 $11,272,808
Total interest expense 5,282,235 7,021,644
Net interest income 5,090,770 4,251,164
Provision for loan losses 291,218 460,966
Net interest income after provision for
loan losses 4,799,552 3,790,198
Other income 3,026,335 2,159,462
Non-interest expenses 6,138,089 4,553,430
Income before income taxes 1,687,798 1,396,230
Provision for income taxes 648,600 531,227
Net income 1,039,198 865,003
Diluted EPS $0.48 $0.41
Quarter Quarter
ending ending
Dec. 31, Dec. 31,
2002 2001
------------- -------------
Total interest income $2,691,653 $2,716,295
Total interest expense 1,389,315 1,576,751
Net interest income 1,302,338 1,139,544
Provision for loan losses 125,000 119,905
Net interest income after provision for
loan losses 1,177,338 1,019,639
Other income 1,037,364 683,326
Non-interest expenses 1,868,873 1,317,361
Income before income taxes 345,829 385,604
Provision for income taxes 133,300 148,327
Net income 212,529 237,277
Diluted EPS $0.10 $0.11
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion