American Bank Reports 43.6% Increase in Earnings for the Year 2001.Business Editors ROCKVILLE Rockville, city (1990 pop. 44,835), seat of Montgomery co., W central Md., a NW suburb of Washington, D.C.; settled c.1760s, inc. as a city 1860. It has several scientific research and technology laboratories that focus on the aerospace, electronics, nuclear energy, , Md.--(BUSINESS WIRE)--Jan. 29, 2002 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), 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. , announced net income for the year ended December December: see month. 31, 2001 increased by 43.6% to $865,003 (or $.43 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 $602,229 (or $.30 per fully diluted share of common stock) for the same period in 2000. Net income was $237,277 (or $.12 per fully diluted share of common stock) for the quarter ended December 31, 2001, compared to net income of $173,043 (or $.09 per fully diluted share of common stock) for the same period in 2000. 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 very excited to report the dramatic increase in earnings. The increase is even greater if you exclude the one-time lawsuit lawsuit: see procedure; tort. proceeds we received in 2000. Indeed, the increased earnings reflect that the investment in our business plan is beginning to show results." Mr. Bowman further noted that, "the Bank continued its growth of core areas. Outstanding loans and deposits have increased by 13.2% and 24.9%, respectively, during the year ended December 31, 2001." For the year ended December 31, 2001, the Bank's net interest margin (net interest income as a percentage of average interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin ) was 2.98%, as compared to 3.30% for the same period in 2000. The decrease in margin is driven primarily by the 475 basis point reduction in short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. by the Federal Reserve during the year. Somewhat mitigating mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. the impact of such decreases, and in an effort to improve the Bank's interest sensitivity risk, the Bank has focused on increasing its core (savings, checking and money market) deposits. The results are seen in a $22.2 million increase in such accounts from $15.5 million at December 31, 2000 to $37.7 million at September 30, 2001. The Bank's net interest spread improved by 9 basis points in the fourth quarter of 2001 as compared to the net interest spread for the prior quarter. Net interest income before the provision for loan losses increased by $474,000 to $4,251,000. The Bank also increased the provision for loan losses by $343,000 during the same period. The provision for loan losses increased during the year ended December 31, 2001 as compared to the same period in 2000 because additional reserves were needed due to the growth of the loan portfolio and the Bank is building reserves in light of economic conditions. For the year ended December 31, 2001, American Bank had net interest income after provisions for loan losses of $3,790,000 compared to $3,659,000 for the same period in 2000. American Bank increased total assets by $20.1 million and loans receivable, net by $12.8 million during 2001. For the year ended December 31, 2001, other income increased by $904,000 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 $618,000 primarily due to an increase 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 associated with the opening of a new branch. At December 31, 2001, American Bank had total assets of $154.3 million, deposits of $104.4 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 $14.2 million, as compared to $134.2 million, $83.5 million and $13.3 million, respectively, at December 31, 2000. American Bank operates three 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, 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. and 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. 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
12/31/01 12/31/00
------------ ------------
Total assets $154,268,937 $134,171,533
Loans receivable, net 109,810,257 97,034,534
Foreclosed real estate, net 786,716 229,918
Deposit accounts 104,353,094 83,517,366
Total borrowed funds 29,090,000 33,500,000
Total stockholders' equity 14,194,676 13,344,904
Operating Data:
Year ended Year ended
December 31, 2001 December 31, 2000
----------------- -----------------
Total interest income $11,272,808 $9,860,880
Total interest expense 7,021,644 6,084,073
Net interest income 4,251,164 3,776,807
Provision for loan losses 460,966 117,809
Net interest income after
provision for loan losses 3,790,198 3,658,998
Other income 2,159,462 1,255,565
Non-interest expenses 4,553,430 3,934,984
Income before income taxes 1,396,230 979,579
Provision for income taxes 531,227 377,350
Net income 865,003 602,229
Diluted EPS $0.43 $0.30
Quarter ending Quarter ending
December 31, 2001 December 31, 2000
----------------- -----------------
Total interest income $2,716,295 $2,673,212
Total interest expense 1,576,751 1,742,050
Net interest income 1,139,544 931,162
Provision for loan losses 119,905 64,781
Net interest income after
provision for loan losses 1,019,639 866,381
Other income 683,326 249,106
Non-interest expenses 1,317,361 833,544
Income before income taxes 385,604 281,943
Provision for income taxes 148,327 108,900
Net income 237,277 173,043
Diluted EPS $0.12 $0.09
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