American Bank Reports First Quarter Earnings.ALLENTOWN Allentown, city (1990 pop. 105,090), seat of Lehigh co., E Pa., on the Lehigh River; inc. as a borough 1811, as a city 1867. The largest city in the agricultural and industrial Lehigh Valley, it is a commercial, financial, and government center. , Pa. -- 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, Inc. (NasdaqSC:AMBK), the parent company of American Bank, today announced earnings for the quarter ended March 31, 2006. Net income for the quarter was $738,000, or $0.10 per 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, a decrease from $0.12 per diluted share in the same period in the prior year. While American Bank recognized a decrease in net income for the quarter, net interest income for the quarter ended March 31, 2006 was $2.6 million, unchanged from the prior year quarter ended March 31, 2005. The primary reason for the decrease in first quarter net income is attributable to a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge of $145,000 on available for sale investment securities. The impairment charge resulted from management's determination that Fannie Mae Fannie Mae: see Federal National Mortgage Association. Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. Series-F was other than temporarily impaired at March 31, 2006. Also impacting the current quarter were the legal and accounting costs associated with the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of 1.4 million shares of the Company's common stock. Average interest-earning assets increased $11.6 million, to $508.0 million at March 31, 2006, compared to $496.4 million at March 31, 2005. Total assets were $525 million at the end of the quarter, while total deposits reached $383 million as of March 31, 2006. While the Company's net interest margin increased by seven basis points to 2.06% at March 31, 2006 when compared to December December: see month. 31, 2005, it decreased by six basis points when compared to 2.12% at March 31, 2005, a result of the flattening
The flattening, ellipticity, or oblateness of an oblate spheroid is the "squashing" of the spheroid's pole, down towards its equator. of the Treasury yield curve during the year. 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. Mark Jaindl stated, "Although the Company incurred non-recurring expenses during the first quarter which impacted our net income, our emphasis on serving small- to medium-sized Me´di`um-sized` a. 1. Having a medium size; as, a medium-sized man s>. Adj. 1. medium-sized - intermediate in size medium-size, moderate-size, moderate-sized commercial businesses throughout the Lehigh Valley The Lehigh Valley or the Allentown-Bethlehem-Easton, PA-NJ metropolitan area is a metropolitan region in eastern Pennsylvania and western New Jersey, in the United States. It is the third-most populated metropolitan region in Pennsylvania, after Philadelphia and Pittsburgh. proved beneficial as we increased our loan portfolio by 22.4%, or $56.1 million, since March 2005. While we are increasing our loan balances, we remain focused on asset quality as evidenced by non-performing assets, which remained at less than $40,000 at March 31, 2006." Jaindl continued, "We continue to implement strategies to enhance shareholder value and this was most recently evidenced by the 33% increase in our annual dividend rate and the decision by our Board of Directors to pay dividends quarterly as opposed to annually. On March 21, 2006, our Board of Directors declared a quarterly dividend of $0.04 per share of common stock to shareholders of record on April 14, 2006. In addition, the Board has determined to allow for the reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. of dividends to purchase additional shares of American Bank Inc. common stock at a 5% discount to the average of the closing "bid" and "ask" price on the Record Date. American Bank common stock last traded at $8.25 per share. About American Bank American Bank serves the Lehigh Valley community in eastern Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York and is recognized as a leading provider of Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the banking and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. nationwide. 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   The old Visa and Delta logos. cards. Pcbanker.com delivers a full range of real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. Internet banking, insurance and discount brokerage A discount brokerage is a business that charges clients significantly lower fees than traditional brokerages, typically offering comparatively fewer services and/or advice. services, while consistently offering some of the best loan and deposit rates in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . American Bank has been recognized as one of the top Internet banks in the country by Gomez Gomez or Gómez is a common Spanish surname. The Portuguese spelling is Gomes, while in Catalan it is rendered as Gomis. People
See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). insured. American Bank Online and pcbanker.com are registered trademarks for the Internet financial services provided by American Bank, a state-chartered, FDIC insured full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. financial institution serving customers throughout the United States. American Bank is a member of the Federal Reserve System. 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. Certain statements contained herein are not based on historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. , changes in prevailing interest rates, risks associated with the conduct of the Company's business over the internet, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect its financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
American Bank, Inc.
Selected Financial Information
(Amounts in thousands, except per share data)
Unaudited
March 31,
--------- December 31,
2006 2005 2005
---- ---- ----
Selected Financial Condition Data:
----------------------------------
Total assets $524,874 $527,365 $529,100
Loans receivable, net 308,409 252,358 301,394
Allowance for loan losses 3,521 2,904 3,393
Securities available for sale
(at fair value) 178,067 227,799 188,691
Securities held to maturity
(at cost) 13,327 23,282 13,482
Deposits 382,998 358,230 368,958
Short-term debt 27,920 17,205 12,921
Long-term debt 69,820 96,027 90,848
Junior subordinated debentures 10,187 10,187 10,187
Stockholders' equity 31,824 43,777 44,345
Book value per share $ 5.27 $ 5.84 $ 5.97
Shares outstanding 6,048 7,539 7,424
Unaudited
For the Three
Months Ended March 31,
----------------------
2006 2005
---- ----
Selected Operating Data:
------------------------
Total interest income $ 6,802 $ 5,758
Total interest expense 4,189 3,126
--------- ---------
Net interest income 2,613 2,632
Provision for loan losses 128 136
--------- ---------
Net interest income after provision
for loan losses 2,485 2,496
--------- ---------
Fees and service charges 51 53
Net gain (loss) on available for sale
securities (90) 9
Net realized gain on sale of mortgage loans 10 24
Earnings on bank owned life insurance 87 87
Other income 59 141
--------- ---------
Total non-interest income 117 314
--------- ---------
Total operating expense 1,539 1,412
--------- ---------
Income before taxes on income 1,063 1,398
Taxes on income 325 436
--------- ---------
Net income $ 738 $ 962
========= =========
Earnings per share-basic $ 0.11 $ 0.13
========= =========
-diluted $ 0.10 $ 0.12
========= =========
Weighted average shares outstanding for
earnings per share calculation-basic 6,839 7,346
========= =========
-diluted 8,073 8,589
========= =========
American Bank, Inc.
Selected Financial Information
Unaudited
For the Three
Months Ended March 31,
----------------------
2006 2005
---- ----
Performance Ratios(1):
----------------------
Return on assets (ratio of net income to
average total assets) 0.56% 0.75%
Return on equity (ratio of net income
to average equity) 7.53% 9.00%
Net interest margin (ratio of net interest
income divided by average earning assets) 2.06% 2.12%
Ratio of operating expense to average
total assets 1.16% 1.10%
Efficiency ratio (ratio of operating expenses
divided by net interest income plus
non-interest income) 56.37% 48.01%
Asset Quality Ratios:
---------------------
Non-performing assets to total assets at
end of period 0.01% 0.04%
Allowance for loan losses to non-performing
loans 8,739.58% 1,444.80%
Allowance for loan losses to loans
receivable 1.13% 1.14%
Regulatory Capital Ratios-Bank:
-------------------------------
Tier I to average assets 7.82% 8.23%
Tier I to risk weighted assets 11.50% 12.43%
Total capital to risk weighted assets 12.50% 13.30%
(1) Ratios for the three month periods are annualized.
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