American Bank Reports Record First Quarter Earnings.Business Editors 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.--(BUSINESS WIRE)--April 21, 2003 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. (Nasdaq: AMBK), the parent company of American Bank, today announced record earnings for the quarter ended March 31, 2003. Net income for the quarter was $812,000, or $0.12 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 of $223,000, or 38%, from the same period in the prior year. This marks the fourteenth straight quarter of increased profitability for the Company. At the end of the quarter, assets totaled $465 million, up 18% from $394 million at March 31, 2002. Total deposits reached $316 million as of March 31, 2003 up from $276 million from the same time the previous year. Asset quality at American Bank remained strong with no non-performing assets at March 31, 2003. 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, "The earnings of American Bank continue to be driven by our ability to control costs. For the quarter ended March 31, 2003, our operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. to asset ratio declined to 1.13% from 1.34% for the same period in 2002. Reducing this ratio has been important to the success of American Bank's business model." American Bank's operating expense ratio of 1.13% makes it one of the most efficient banks 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. as less than 1% of commercial banks nationwide have an operating expense to asset ratio below this level. In addition to controlling costs, the increase in first quarter earnings is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to an increase of $77.8 million of average 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 and an after tax recovery of $165,000 from a previously charged off loan. Earnings were partially offset by a decrease of 55 basis points in the net interest margin in the current quarter compared to the prior year. Chairman of the Board of Directors Frederick Frederick, city, United States Frederick, city (1990 pop. 40,148), seat of Frederick co., NW Md.; settled 1745, inc. 1817. The processing center of a fertile farm and dairying area, it makes beer, household items, optical and glass products, leather goods, Jaindl stated, "We are pleased with the growth of the Bank during the first quarter as a continuation of our success in 2002. In addition, we look forward to improving American Bank even further through the implementation of a "Commitment to Excellence" program developed during the first quarter of 2003. This program outlines our commitment to both American Bank customers that we will provide quality products and superior service and to shareholders that we will do this while maintaining costs and enhancing shareholder value." American Bank common stock last traded at $9.63 per share and the American Bank warrants last traded at $3.39 per warrant. American Bank warrants are exercisable at $6.67 per share through June June: see month. 30, 2003. About American Bank American Bank serves 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. 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. 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 for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. 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 reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. 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)
March 31,
---------
2003 2002
Selected Financial Condition Data:
----------------------------------
Total assets $464,962 $393,567
Loans receivable, net 141,618 132,966
Allowance for loan losses 1,820 1,683
Short-term investments -- 998
Securities available for sale (at market) 274,652 208,670
Securities held to maturity (at cost) 11,846 13,780
Deposits 316,292 276,287
Short-term debt 9,481 7,544
Long-term debt 97,675 83,128
Mandatory redeemable convertible debentures 10,200 --
Stockholders' equity 29,357 25,065
Book value per share $ 4.81 $ 4.17
Shares outstanding 6,101 6,013
For the Three
Months Ended Mar 31,
--------------------
2003 2002
Selected Operating Data:
------------------------
Total interest income $ 5,074 $ 5,129
Total interest expense 3,070 2,974
--------- --------
Net interest income 2,004 2,155
Provision for loan losses (190) 139
--------- --------
Net interest income after
provision for loan losses 2,194 2,016
--------- --------
Fees and service charges 41 42
Net realized gain on sale of
mortgage loans 79 39
Other income 150 50
--------- --------
Total non-interest income 270 131
--------- --------
Total operating expense 1,295 1,269
--------- --------
Income before taxes on income 1,169 878
Taxes on income 357 289
--------- --------
Net income $ 812 $ 589
========= =========
Earnings per share-basic $ 0.13 $ 0.10
========= =========
-diluted $ 0.12 $ 0.09
========= =========
Weighted average shares
outstanding for earnings
per share calculation-basic 6,071 6,003
========= =========
-diluted 7,585 6,261
========= =========
American Bank, Inc.
Selected Financial Information
For the Three
Months Ended Mar 31,
--------------------
2003 2002
Performance Ratios(1):
----------------------
Return on assets (ratio of net
income to average total assets) 0.71% 0.64%
Return on equity (ratio of net
income to average equity) 11.28% 9.26%
Net interest margin (ratio of net
interest income divided by
average earning assets) 1.82% 2.37%
Ratio of operating expense to
average total assets 1.13% 1.34%
Efficiency ratio (ratio of
operating expenses divided by
net interest income plus
non-interest income) 56.94% 55.52%
Asset Quality Ratios:
---------------------
Non-performing assets to total
assets at end of period none none
Allowance for loan losses to
non-performing loans n/a n/a
Allowance for loan losses to
loans receivable 1.27% 1.25%
Regulatory Capital Ratios-Bank:
-------------------------------
Tier I to average assets 7.28% 6.63%
Tier I to risk weighted assets 13.37% 10.92%
Total capital to risk weighted assets 14.11% 11.65%
_________________________
(1) Ratios for the three month periods are annualized.
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