American Bank Reports 42.6% Increase in Third Quarter Earnings.Business Editors SILVER SPRING, Md.--(BUSINESS WIRE)--Oct. 24, 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 nine months ended September 30, 2002 of $826,669 (or $.39 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 31.7% increase from net income of $627,726 (or $.30 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 that results continue to demonstrate that our business plan is working. We have accomplished many things this year and despite the costs incurred for extraordinary items, we have increased earnings drastically. We incurred extraordinary 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 move of our corporate headquarters, the opening of a leasing operation and loan production office in North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. and the start of 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." Net income for the three months ended September 30, 2002 of $318,321 (or $.15 per fully diluted share of common stock), a 42.6% increase from net income of $223,279 (or $.11 per fully diluted share of common stock) for the same period in 2001. For the nine months ended September 30, 2002, net interest income before the provision for loan losses increased by $731,000 to $3,842,000. The Bank also decreased the provision for loan losses by $175,000 during the same period. For the nine months ended September 30, 2002, other income increased by $513,000 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 $1,087,000 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, increased staffing, costs associated with the moving of our corporate headquarters and increased data processing costs. At September 30, 2002, American Bank had total assets of $180.2 million, deposits of $121.0 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 $14.9 million, as compared to $154.3 million, $104.4 million and $14.2 million, respectively, at December 31, 2001. Deposits increased by $16.7 million during the first nine months of 2002. Core deposits increased by $2.5 million, while the Certificates of Deposit increased by $14.2 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 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
09/30/02 12/31/01
------------ ------------
Total assets $180,192,826 $154,268,937
Loans receivable, net 111,265,109 97,286,030
Foreclosed real estate, net 667,879 786,716
Deposit accounts 121,046,385 104,353,094
Total borrowed funds 40,075,000 29,090,000
Total stockholders' equity 14,892,829 14,194,676
Operating Data:
Year-to-date Year-to-date
September 30, 2002 September 30, 2001
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Total interest income $7,735,082 $8,556,513
Total interest expense 3,892,920 5,444,893
Net interest income 3,842,162 3,111,620
Provision for loan losses 166,218 341,061
Net interest income after loan
losses 3,675,944 2,770,559
Other income 1,988,971 1,476,136
Non-interest expenses 4,322,946 3,236,069
Income before income taxes 1,341,969 1,010,626
Provision for income taxes 515,300 382,900
Net income 826,669 627,726
Diluted EPS $0.39 $0.30
Quarter ending Quarter ending
September 30, 2002 September 30, 2001
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Total interest income $2,800,570 $2,897,340
Total interest expense 1,310,440 1,835,624
Net interest income 1,490,130 1,061,716
Provision for loan losses 95,000 145,351
Net interest income after loan
losses 1,395,130 916,365
Other income 680,710 625,240
Non-interest expenses 1,556,819 1,177,776
Income before income taxes 519,021 363,829
Provision for income taxes 200,700 140,550
Net income 318,321 223,279
Diluted EPS $0.15 $0.11
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