American Bank Reports 25.7% Increase in Earnings for the First Six Months of 2002.Business Editors SILVER SPRING, Md.--(BUSINESS WIRE)--July 26, 2002 American Bank (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :BKMD), 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 six months ended June 30, 2002 was $508,348 (or $.24 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), as compared to net income of $404,447 (or $.19 per fully diluted share of common stock) for the same period in 2001. Phillip C. Bowman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of American Bank, said "We are pleased to report these earnings and believe the second quarter shows that our business plan is working. For the first quarter of the year, even though we incurred significant expenses 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. , we still have a large increase in net income." Net income for the three months ended June 30, 2002 was $361,547 (or $.17 per fully diluted share of common stock), as compared to net income of $188,622 (or $.09 per fully diluted share of common stock) for the same period in 2001. During the first quarter of 2002, in addition to customary expenses, the Bank incurred expenses of approximately $157,000 related specifically to the proxy fight Proxy Fight When a group of shareholders are persuaded to join forces and gather enough shareholder proxies to win a corporate vote. This is sometimes also referred to as a proxy battle. Notes: This term is mainly used in the context of takeovers. . Excluding these proxy related expenses, the Bank's net income for the first six months of 2002 would have been $604,715 which would have represented a 49.5% increase in net income as compared to the first six months of 2001. For the six months ended June 30, 2002, net interest income before the provision for loan losses increased by $302,000 to $2,352,000. The Bank also decreased the provision for loan losses by $124,000 during the same period. For the six months ended June 30, 2002, other income increased by $457,000 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 $708,000 primarily due to costs related to the proxy contest, 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. At June 30, 2002, American Bank had total assets of $165.3 million, deposits of $102.2 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 $14.6 million, as compared to $154.3 million, $104.4 million and $14.2 million, respectively, at December 31, 2001. Deposits decreased by $2.1 million during the first six months of 2002. Core deposits increased by $3.9 million, while the Certificates of Deposit decreased by $6.0 million during this period. 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
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.
Balance Sheet Data:
Balance Balance
06/30/02 12/31/01
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Total assets $165,276,126 $154,268,937
Loans receivable, net 110,782,081 97,286,060
Foreclosed real estate, net 667,879 786,716
Deposit accounts 102,226,447 104,353,094
Total borrowed funds 42,082,000 29,090,000
Total stockholders' equity 14,613,222 14,194,676
Operating Data:
Year-to-date Year-to-date
June 30, 2002 June 30, 2001
------------ ------------
Total interest income $ 4,934,512 $ 5,659,173
Total interest expense 2,582,480 3,609,269
Net interest income 2,352,032 2,049,904
Provision for loan losses 71,218 195,710
Net interest income after loan
losses 2,280,814 1,854,194
Other income 1,308,261 850,896
Non-interest expenses 2,766,127 2,058,293
Income before income taxes 822,948 646,797
Provision for income taxes 314,600 242,350
Net income 508,348 404,447
Basic EPS 0.25 0.19
Diluted EPS $ 0.24 $ 0.19
Quarter ending Quarter ending
June 30, 2002 June 30, 2001
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Total interest income $ 2,584,764 $ 2,799,612
Total interest expense 1,261,272 1,827,299
Net interest income 1,323,492 972,313
Provision for loan losses 55,030 126,760
Net interest income after loan
losses 1,268,462 845,553
Other income 754,990 530,954
Non-interest expenses 1,434,005 1,069,135
Income before income taxes 589,447 307,372
Provision for income taxes 227,900 118,750
Net income 361,547 188,622
Basic EPS 0.17 0.09
Diluted EPS $ 0.17 $ 0.09
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