American Bank Reports Increase In 2007 Net Income.ALLENTOWN, Pa. -- American Bank, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: AMBK.OB), the parent company of American Bank, today announced a 38% increase in earnings for the year ended December 31, 2007. Net income for the year was $3,920,000, or $0.61 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, an increase from $2,831,000, or $0.43 per diluted share, reported for the year ended December 31, 2006. The increase in net income for the year ended December 31, 2007 is the result of $1.35 million in net after-tax gains Net after-tax gain Capital gain after income taxes have been paid. on available for sale securities, and an increase of $110,000 in net interest income. These increases were off-set by an increase of $170,000 in provisions for loan losses and an increase of $487,000 in non-interest expense. The increase in non-interest expense results from an increase in salaries and benefits of $253,000, an increase in professional fees of $110,000 and FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). insurance premiums of $182,000. The increase in professional fees relates to the re-organization and de-registration completed in July 2007. The FDIC insurance premiums were not imposed in prior years. Net interest income for the year ended December 31, 2007 was $9,870,000, an increase of $110,000 from $9,760,000 for the prior year ended December 31, 2006. The increase in net interest income was a result of the improvement in the Company's net interest margin to 2.04% for the year ended December 31, 2007 from 1.94% for the prior year. American Bank's net loans outstanding decreased by $12.1 million, or 3.8%, to $307.9 million at December 31, 2007, while non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. were less than $68,000 at year-end. Deposits increased by $7.3 million, or 2.0%, from $368.9 million to $376.2 at December 31, 2007. For the quarter ended December 31, 2007, American Bank, Inc. posted net income of $522,000, or $0.09 per diluted share, a decrease from $674,000, or $0.10 per diluted share, reported in the same period of the prior year. At December 31, 2007, the Company determined that a certain issue of FNMA FNMA abbr. Federal National Mortgage Association Noun 1. FNMA - a federally chartered corporation that purchases mortgages Fannie Mae, 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. was other than temporarily impaired and recorded a charge of $316,000 to reduce the amortized cost of this security to market value on that date. As was previously reported, on November 21, 2007, the Board of Directors of American Bank, Inc. declared a quarterly dividend of $0.05 per share of common stock to shareholders of record on December 4, 2007 and payable on January 2, 2008. The Board of Directors also declared a quarterly dividend of $0.05 per share of Series A preferred stock to shareholders of record on December 4, 2007 and payable on January 2, 2008. American Bank, Inc. common stock last traded at $7.45 per share. American Bank, Inc. Series A preferred stock (AMBKO.OB) is listed on the OTC BB but has not traded to date. American Capital Trust I Preferred Securities last traded at $9.00. About American Bank 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 check cards. Pcbanker.com delivers a full range of real-time Internet banking 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 and has received the Bankrate.com[R] Top Tier award for consistently offering annual percentage yields (APYs) that were among the highest reported. American Bank is FDIC insured. American Bank Online and pcbanker.com are registered trade marks TRADE MARKS. Signs, writings or tickets put upon manufactured goods, to distinguish them from others. 2. It seems at one time to have been thought that no man acquired a right in a particular mark or stamp. 2 Atk. 484. for the Internet 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. provided by American Bank, a state-chartered, FDIC-insured, full-service 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 may be considered "forward-looking statements". 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 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 after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. [TABLE OMITTED] |
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