American Bank Reports Second 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 Incorporated (NasdaqSC:AMBK), the parent company of American Bank, today announced earnings for the quarter and six months ended June June: see month. 30, 2006. Net income for the quarter was $685,000, or $0.11 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, which was equal to the $0.11 per diluted share in the same period in the prior year. American Bank's net loans outstanding totaled $315 million as of June 30, 2006, up from $272 million at the same time last year, an increase of 15.8%, or $43 million. At the end of the quarter, assets totaled $533 million, up 2.3% from $521 million at June 30, 2005. Total deposits were $371 million as of June 30, 2006, up from $358 million from the same time the previous 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, "One of the biggest challenges facing the banking industry today is the flat yield curve Flat Yield Curve A chart that shows that the yields of bonds with short maturities are equal to the yields of bonds with longer maturities. , which has a negative impact on net interest margin. To enhance net interest margin, we will continue to increase the level of higher yielding assets through the development of our loan portfolio. While we have increased our loan portfolio by 15.8% during the last year, the quality of the portfolio remains strong." On June 20, 2006, the Board of Directors of American Bank declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a quarterly dividend of $0.04 per share of common stock to shareholders of record on July July: see month. 14, 2006 and payable on July 28, 2006. In addition, the Board approved the continuance The adjournment or postponement of an action pending in a court to a later date of the same or another session of the court, granted by a court in response to a motion made by a party to a lawsuit. of 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 by shareholders 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 $7.83 per share. American Bank Trust Preferred Securities last traded at $9.25. 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 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 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 FDIC 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
(In thousands, except per share data and ratios)
Unaudited
December
June 30, 31,
------------------ ---------
2006 2005 2005
-------- --------- ---------
Selected Financial Condition Data:
----------------------------------
Total assets $533,270 $520,842 $529,100
Loans receivable, net 315,417 271,770 301,394
Allowance for loan losses 3,656 3,072 3,393
Securities available for sale (at
fair value) 175,686 210,592 188,691
Securities held to maturity (at
cost) 14,139 13,117 13,482
Deposits 370,693 358,411 368,958
FHLB advances 106,892 95,959 95,048
Junior subordinated debentures 10,187 10,187 10,187
Stockholders' equity 31,463 43,899 44,345
Book value per share $5.31 $5.84 $5.97
Shares outstanding 6,055 7,478 7,424
Unaudited Unaudited
For the Three For the Six
Months Ended June Months Ended June
30, 30,
------------------ -----------------
2006 2005 2006 2005
-------- --------- -------- --------
Selected Operating Data:
----------------------------------
Total interest income $6,959 $6,019 $13,761 $11,777
Total interest expense 4,540 3,414 8,729 6,540
-------- --------- -------- --------
Net interest income 2,419 2,605 5,032 5,237
Provision for loan losses 135 168 336 304
-------- --------- -------- --------
Net interest income after
provision for loan losses 2,284 2,437 4,769 4,933
-------- --------- -------- --------
Fees and service charges 49 49 100 102
Net realized gain on sales of
mortgage loans 20 21 30 45
Net realized gain (loss) on sales
of securities 7 (1) (83) 8
Earnings on bank owned life
insurance 87 87 174 174
Other income 56 112 115 253
-------- --------- -------- --------
Total non-interest income 219 268 336 582
-------- --------- -------- --------
Total operating expense 1,523 1,509 3,062 2,921
-------- --------- -------- --------
Income before taxes on
income 980 1,196 2,043 2,594
Taxes on income 295 354 620 790
-------- --------- -------- --------
Net income $685 $842 $1,423 $1,804
======== ========= ======== ========
Earnings per share-basic $0.11 $0.11 $0.22 $0.24
======== ========= ======== ========
diluted $0.11 $0.11 $0.21 $0.23
======== ========= ======== ========
Weighted average shares
outstanding-basic 6,054 7,480 6,445 7,413
======== ========= ======== ========
-diluted 7,287 8,720 7,678 8,653
======== ========= ======== ========
American Bank, Inc.
Selected Financial Information
Unaudited
For the Three
Months Ended June 30,
-----------------------
2006 2005
------------ ----------
Performance Ratios(1):
-----------------------
Return on assets (ratio of net income to
average total assets) 0.52% 0.65%
Return on equity (ratio of net income
to average equity) 8.59% 7.66%
Net interest margin (ratio of net interest
income divided by average earning assets) 1.92% 2.08%
Ratio of operating expense to average total
assets 1.15% 1.16%
Efficiency ratio (ratio of operating expenses
divided by net interest income plus
non-interest income) 57.73% 52.49%
Asset Quality Ratios:
----------------------
Non-performing assets to total assets at
end of period 0.01% 0.01%
Allowance for loan losses to non-performing
loans 9383.33% 7475.82%
Allowance for loan losses to loans
receivable 1.12% 1.12%
Regulatory Capital Ratios-Bank:
--------------------------------
Tier I to average assets 8.00% 8.40%
Tier I to risk weighted assets 11.30% 12.52%
Total capital to risk weighted assets 12.30% 13.43%
(1) Ratios for the three month periods are annualized.
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