American Bank Reports Second Quarter Earnings

  
    
  
  
    
      American Bank Incorporated (OTC BB:AMBK.OB), the parent company of 
      American Bank, today announced earnings for the quarter ended June 30, 
      2007. Net income for the quarter was $1.98 million, or $0.29 per diluted 
      share, an increase from $685,000 or $0.11 per diluted share for the same 
      period in the prior year. The increase in net income was the result of a 
      $1.45 million after-tax increase in non-interest income during the 
      quarter resulting from a one-time after-tax gain of $1.6 million on the 
      previously announced sale of PSB Bancorp, Inc. stock, but offset by an 
      after-tax impairment charge of $165,000 relating to common shares of 
      other financial institutions held by the Company.
    
    
      Net interest income for the quarter ended June 30, 2007 was $2.6 
      million, an increase of $191,000 from the prior year quarter ended June 
      30, 2006. Although average interest-earning assets declined by $19.1 
      million to $488.4 million at June 30, 2007, the increase in net interest 
      income was a result of an improvement in the Company’s 
      net interest margin to 2.08% for the quarter ended June 30, 2007 from 
      1.92% for the same quarter in the prior year. Total assets declined by 
      $31.3 million to $501.9 million at the end of the quarter, while total 
      deposits increased by $25.1 million to $395.8 million. Non-interest 
      expense increased $203,000 to $1.7 million during the quarter ended June 
      30, 2007, compared to $1.5 million for the quarter ended June 30, 2006. 
      The increase in non-interest expense was attributable to an increase of 
      $122,000 in salary and benefit costs, $43,000 in professional fees, 
      primarily associated with the Company’s SEC 
      deregistration and $48,000 in federal deposit insurance premiums. The 
      Federal Deposit Insurance Corporation began assessing insurance premiums 
      in January of 2007.
    
    
      As was previously announced, in a continued effort to enhance 
      shareholder value, the Company completed its deregistration of the 
      Company’s common stock under the Securities 
      Exchange Act of 1934, as amended, on July 10, 2007. President and CEO 
      Mark W. Jaindl stated, “With the 
      deregistration of the Company’s common stock 
      completed, the Board of Directors and management can now focus their 
      time and efforts on the long-term growth and profitability of the 
      Company as well as enhancing shareholder value.”
    
    
      On June 26, 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 July 6, 2007 and payable on July 20, 2007.
    
    
      American Bank, Inc. common stock (AMBK.OB) last traded at $7.85 per 
      share. American Capital Trust I Preferred Securities (AMBKP.OB) last 
      traded at $8.75. It is anticipated that the American Bank, Inc. Series A 
      preferred stock (AMBKO.OB) will begin trading before the end of July.
    
    
      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 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 and has received the Bankrate.com® 
      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 for the Internet financial services 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
    
    
      Certain statements contained herein are not based on historical facts 
      and may be considered "forward-looking statements". 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, 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 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)
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          June 30,
        
        
        
        
          December 31,
        
        
        
        
        
      
      
        
        
        
        
        
           
        
        
          2007
        
        
        
        
           
        
        
          2006
        
        
        
        
          2006
        
        
        
        
        
      
      
        
        
        
        
        
          Unaudited
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Selected Financial Condition Data:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Total assets
        
        
        
        
          $
        
        
          501,914
        
        
        
        
          $
        
        
          533,270
        
        
        
        
          $
        
        
          504,595
        
        
        
        
        
      
      
        
          Loans receivable, net
        
        
        
        
        
        
          301,616
        
        
        
        
        
        
          315,417
        
        
        
        
        
        
          319,969
        
        
        
        
        
      
      
        
          Allowance for loan losses
        
        
        
        
        
        
          3,936
        
        
        
        
        
        
          3,656
        
        
        
        
        
        
          3,734
        
        
        
        
        
      
      
        
          Securities available for sale (at fair value)
        
        
        
        
        
        
          142,750
        
        
        
        
        
        
          175,686
        
        
        
        
        
        
          149,636
        
        
        
        
        
      
      
        
          Securities held to maturity (at cost)
        
        
        
        
        
        
          10,922
        
        
        
        
        
        
          14,139
        
        
        
        
        
        
          11,709
        
        
        
        
        
      
      
        
          Deposits
        
        
        
        
        
        
          395,796
        
        
        
        
        
        
          370,693
        
        
        
        
        
        
          368,995
        
        
        
        
        
      
      
        
          Short-term debt
        
        
        
        
        
        
          11,627
        
        
        
        
        
        
          51,858
        
        
        
        
        
        
          27,616
        
        
        
        
        
      
      
        
          Long-term debt
        
        
        
        
        
        
          57,675
        
        
        
        
        
        
          66,792
        
        
        
        
        
        
          61,734
        
        
        
        
        
      
      
        
          Mandatory redeemable convertible debentures
        
        
        
        
        
        
          10,479
        
        
        
        
        
        
          10,503
        
        
        
        
        
        
          10,503
        
        
        
        
        
      
      
        
          Stockholders' equity
        
        
        
        
        
        
          34,890
        
        
        
        
        
        
          31,643
        
        
        
        
        
        
          34,219
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Book value per share
        
        
        
        
          $
        
        
          5.87
        
        
        
        
          $
        
        
          5.23
        
        
        
        
          $
        
        
          5.68
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Shares outstanding
        
        
        
        
        
        
          6,003
        
        
        
        
        
        
          6,839
        
        
        
        
        
        
          6,020
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          
            For the ThreeMonths Ended June 30,
          
        
        
        
        
          
            For the SixMonths Ended June 30,
          
        
      
      
        
        
        
        
        
           
        
        
          2007
        
        
        
        
           
        
        
          2006
        
        
        
        
          2007
        
        
        
        
           
        
        
          2006
        
      
      
        
        
        
        
        
          Unaudited
        
        
        
        
          Unaudited
        
      
      
        
          Selected Operating Data:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Total interest income
        
        
        
        
          $
        
        
          7,388
        
        
        
        
          $
        
        
          6,959
        
        
        
        
          $
        
        
          14,441
        
        
        
        
          $
        
        
          13,761
        
      
      
        
          Total interest expense
        
        
        
        
           
        
        
          4,778
        
        
           
        
        
           
        
        
          4,540
        
        
           
        
        
          9,497
        
        
           
        
        
           
        
        
          8,729
        
      
      
        
          Net interest income
        
        
        
        
        
        
          2,610
        
        
        
        
        
        
          2,419
        
        
        
        
        
        
          4,944
        
        
        
        
        
        
          5,032
        
      
      
        
          Provision for loan losses
        
        
        
        
           
        
        
          321
        
        
           
        
        
           
        
        
          135
        
        
           
        
        
          321
        
        
           
        
        
           
        
        
          263
        
      
      
        
          Net interest income after provision for loan losses
        
        
        
        
           
        
        
          2,289
        
        
           
        
        
           
        
        
          2,284
        
        
           
        
        
          4,623
        
        
           
        
        
           
        
        
          4,769
        
      
      
        
          Fees and service charges
        
        
        
        
        
        
          44
        
        
        
        
        
        
          49
        
        
        
        
        
        
          92
        
        
        
        
        
        
          100
        
      
      
        
          Net gains on available for sale securities
        
        
        
        
        
        
          2,174
        
        
        
        
        
        
          7
        
        
        
        
        
        
          2,368
        
        
        
        
        
        
          (83)
        
      
      
        
          Net realized gain on sale of mortgage loans
        
        
        
        
        
        
          15
        
        
        
        
        
        
          20
        
        
        
        
        
        
          31
        
        
        
        
        
        
          30
        
      
      
        
          Earnings from Bank-owned life insurance
        
        
        
        
        
        
          85
        
        
        
        
        
        
          87
        
        
        
        
        
        
          171
        
        
        
        
        
        
          174
        
      
      
        
          Other income
        
        
        
        
           
        
        
          67
        
        
           
        
        
           
        
        
          56
        
        
           
        
        
          130
        
        
           
        
        
           
        
        
          115
        
      
      
        
          Total non-interest income
        
        
        
        
           
        
        
          2,385
        
        
           
        
        
           
        
        
          219
        
        
           
        
        
          2,792
        
        
           
        
        
           
        
        
          336
        
      
      
        
          Total operating expense
        
        
        
        
           
        
        
          1,726
        
        
           
        
        
           
        
        
          1,523
        
        
           
        
        
          3,375
        
        
           
        
        
           
        
        
          3,062
        
      
      
        
          Income before taxes on income
        
        
        
        
        
        
          2,948
        
        
        
        
        
        
          980
        
        
        
        
        
        
          4,040
        
        
        
        
        
        
          2,043
        
      
      
        
          Taxes on income
        
        
        
        
           
        
        
          960
        
        
           
        
        
           
        
        
          295
        
        
           
        
        
          1,293
        
        
           
        
        
           
        
        
          620
        
      
      
        
          Net income
        
        
        
        
          $
        
        
          1,988
        
        
           
        
        
          $
        
        
          685
        
        
           
        
        
          
            $
          
        
        
          
            2,747
          
        
        
           
        
        
          $
        
        
          1,423
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Earnings per share-basic
        
        
        
        
          $
        
        
          0.33
        
        
           
        
        
          $
        
        
          0.11
        
        
           
        
        
          
            $
          
        
        
          
            0.46
          
        
        
           
        
        
          $
        
        
          0.22
        
      
      
        
          Earnings per share-diluted
        
        
        
        
          $
        
        
          0.29
        
        
           
        
        
          $
        
        
          0.11
        
        
           
        
        
          
            $
          
        
        
          
            0.41
          
        
        
           
        
        
          $
        
        
          0.21
        
      
      
        
          Weighted average shares outstanding for earnings per share 
          calculation-basic
        
        
        
        
           
        
        
          5,977
        
        
           
        
        
           
        
        
          6,054
        
        
           
        
        
          5,980
        
        
           
        
        
           
        
        
          6,445
        
      
      
        
          
            -diluted
          
        
        
        
        
           
        
        
          
            7,210
          
        
        
           
        
        
           
        
        
          7,287
        
        
           
        
        
           
        
        
          7,212
        
        
           
        
        
           
        
        
          7,678
        
      
      
        
          
             
          
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          American Bank, Inc.Selected Financial Information
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          
            For the ThreeMonths Ended June 30,
          
        
        
        
        
          
            For the SixMonths Ended June 30,
          
        
      
      
        
        
        
        
        
           
        
        
          2007
        
        
        
        
           
        
        
          2006
        
        
        
        
          2007
        
        
        
        
           
        
        
          2006
        
      
      
        
        
        
        
        
          Unaudited
        
        
        
        
          Unaudited
        
      
      
        
          Performance Ratios (1):
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Return on assets (ratio of net income to average total assets)
        
        
        
        
        
        
          1.58%
        
        
        
        
        
        
          0.52%
        
        
        
        
        
        
          1.09%
        
        
        
        
        
        
          0.54%
        
      
      
        
          Return on equity (ratio of net income to average equity)
        
        
        
        
        
        
          21.96%
        
        
        
        
        
        
          8.59%
        
        
        
        
        
        
          15.74%
        
        
        
        
        
        
          8.01%
        
      
      
        
          Net interest margin (ratio of net interest income divided by average 
          earning assets)
        
        
        
        
        
        
          2.08%
        
        
        
        
        
        
          1.92%
        
        
        
        
        
        
          2.07%
        
        
        
        
        
        
          1.98%
        
      
      
        
          Ratio of operating expense to average total assets
        
        
        
        
        
        
          1.37%
        
        
        
        
        
        
          1.15%
        
        
        
        
        
        
          1.34%
        
        
        
        
        
        
          1.16%
        
      
      
        
          Efficiency ratio (ratio of operating expenses divided by net 
          interest income plus non-interest income)
        
        
        
        
        
        
          36.93%
        
        
        
        
        
        
          57.73%
        
        
        
        
        
        
          43.63%
        
        
        
        
        
        
          57.04%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          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
        
        
        
        
        
        
          5,978.41%
        
        
        
        
        
        
          9,383.33%
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Allowance for loan losses to loans receivable
        
        
        
        
        
        
          1.29%
        
        
        
        
        
        
          1.15%
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Regulatory Capital Ratios-Bank:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Tier I to average assets
        
        
        
        
        
        
          9.00%
        
        
        
        
        
        
          8.11%
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Tier I to risk weighted assets
        
        
        
        
        
        
          12.57%
        
        
        
        
        
        
          11.53%
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Total capital to risk weighted assets
        
        
        
        
        
        
          13.67%
        
        
        
        
        
        
          12.59%
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
           
        
        
           
        
        
        
        
        
      
      
        
          (1) Ratios for three month periods are 
          annualized.