American Bank Reports Record Fourth Quarter Earnings, 88% Increase in 2002 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)--Jan. 10, 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. (NasdaqSC:AMBK), the parent company of American Bank (collectively "American Bank"), today announced record earnings for the quarter and year ended December December: see month. 31, 2002. Net income for the quarter was $708,000, or $.11 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 $307,000 or 76% from the same period in the prior year. For the year ended December 31, 2002, American Bank posted net income of $2,516,000, or $.40 per diluted share, an increase of $1,178,000 or 88% from the prior year. This increase is primarily attributable to an increase of $101.2 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 , which was partially offset by a decrease of 33 basis points in the net interest margin since December 31, 2001. During 2002, the assets of American Bank increased by 22.8%, while the quality of its loan portfolio remained high with no non-performing assets at December 31, 2002. American Bank's earnings for the fourth quarter marks the thirteenth consecutive quarter of record earnings, making it the only 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 bank 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. that has attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. this succession of earnings increases. Although American Bank currently has no non-performing assets, it did increase its loan loss reserves by $56,000 during the fourth quarter and by $212,000 for the year ended December 31, 2002. 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, "Our increase in earnings for the fourth quarter was driven by our ability to control costs. For the quarter ended December 31, 2002, 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 1.18% from 1.46% for the same period in 2001. Reducing this ratio has been important to the success of American Bank's business model. By maintaining low 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. , we can consistently offer our customers attractive rates on loan and deposit products." American Bank's operating expense ratio of 1.18% makes it one of the most efficient banks in the United States as less than 1% of commercial banks nationwide have an operating expense to asset ratio below this level. American Bank's efficiency ratio also improved to 55.24% for the three months ended December 31, 2002, compared to 58.02% for the same period in 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 progress of the Bank during the past year and look forward to continued, but moderate growth, in 2003. The financial markets were disappointing for many of us during 2002 with the Dow Jones Dow Jones the best known of several U.S. indexes of movements in price on Wall Street. [Am. Hist.: Payton, 202] See : Finance Industrials and Nasdaq falling by approximately 16% and 31% respectively. However, American Bank shareholders recognized an increase in the value of their shares of over 20% during that same period. At American Bank we are committed to both our shareholders and customers and strive to continue our tradition of superior service in 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. while also enhancing shareholder value." American Bank common stock last traded at $9.37 per share and the American Bank warrants last traded at $3.55 per warrant. American Bank warrants are exercisable at $6.67 per share through June June: see month. 30, 2003. 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 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 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 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 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)
December 31,
--------------------
2002 2001
Selected Financial
Condition Data:
------------------
Total assets $ 452,830 $ 368,709
Loans receivable, net 134,925 135,589
Allowance for loan losses 1,759 1,998
Short-term investments -- 13,981
Securities available for
sale (at market) 276,569 175,177
Securities held to
maturity (at cost) 13,466 14,822
Deposits 306,751 253,763
Short-term debt 7,881 4,237
Long-term debt 97,791 83,238
Mandatory redeemable
convertible debentures 10,200 --
Stockholders' equity 28,574 25,508
Book value per share $ 4.70 $ 4.24
Shares outstanding 6,078 6,013
For the Three For the Year
Months Ended Dec 31, Ended Dec 31,
-------------------- --------------------
2002 2001 2002 2001
Selected Operating Data:
------------------------
Total interest income $ 5,220 $ 5,190 $ 20,457 $ 19,995
Total interest expense 3,204 3,114 12,409 13,123
--------- --------- --------- ---------
Net interest income 2,016 2,076 8,048 6,872
Provision for loan losses 56 370 212 651
--------- --------- --------- ---------
Net interest income after
provision for loan
losses 1,960 1,706 7,836 6,221
--------- --------- --------- ---------
Fees and service charges 46 75 160 131
Net realized gain (loss)
on sale of securities. 36 -- 112 (13)
Net realized gain on sale
of mortgage loans 125 47 296 164
Other income 145 65 389 193
--------- --------- --------- ---------
Total non-interest income 352 187 957 475
--------- --------- --------- ---------
Total operating expense 1,308 1,313 5,180 5,061
--------- --------- --------- ---------
Income before taxes on
income 1,004 580 3,613 1,635
Taxes on income 296 179 1,097 297
--------- --------- --------- ---------
Net income $ 708 $ 401 $ 2,516 $ 1,338
========= ========= ========= =========
Earnings per
share-basic $ .12 $ .07 $ .42 $ .22
========= ========= ========= =========
-diluted $ .11 $ .06 $ .40 $ .22
========= ========= ========= =========
Weighted average shares
outstanding for
earnings per share
calculation-basic 6,055 6,001 6,034 6,001
========= ========= ========= =========
-diluted 7,494 6,228 7,054 6,219
========= ========= ========= =========
American Bank, Inc.
Selected Financial Information
For the Three For the Year
Months Ended Dec 31, Ended Dec 31,
-------------------- --------------------
2002 2001 2002 2001
Performance Ratios(1):
----------------------
Return on assets (ratio of
net income to average
total assets) .64% .45% .62% .43%
Return on equity (ratio of
net income to average
equity) 10.31% 6.15% 9.51% 5.48%
Net interest margin (ratio
of net interest income
divided by average earning
assets) 1.92% 2.42% 2.07% 2.40%
Ratio of operating expense
to average total assets 1.18% 1.46% 1.28% 1.60%
Efficiency ratio (ratio of
operating expenses divided
by net interest income
plus non-interest income) 55.24% 58.02% 57.52% 68.89%
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 1.28% 1.36%
Regulatory Capital Ratios-Bank:
-------------------------------
Tier I to average assets 8.19% 6.80%
Tier I to risk weighted
assets 14.45% 10.39%
Total capital to risk
weighted assets 15.63% 11.24%
(1) Ratios for the three month periods are annualized.
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