American Bank Incorporated: Friday, January 14, 2022 American Bank Incorporated Announces Record Profits For 2021; 16% increase from 2020

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CONTACT: Mark W. Jaindl, President and CEO
Allentown, Pennsylvania, January 14, 2022

American Bank Incorporated (OTC Pink: AMBK), the parent company of American Bank, today announced its results for the fiscal year ended December 31, 2021. Net income for the year was 10,103,000 $, or $1.68 per diluted share, an increase of $1,389,000 or 15.9%. , compared to net income of $8,714,000, or $1.37 per diluted share, reported for the year ended December 31, 2020.

Total assets increased by $114.5 million or 15.6% to reach $848.8 million as at December 31, 2021, compared to $734.3 million as at December 31, 2020. Net loans increased by $19.6 million or 3.3% from December 31, 2020, due to organic loan growth offset by PPP loan forgiveness payments received. Excluding PPP loans, net loans increased by $54.4 million or 9.9% compared to December 31, 2020. Total deposits increased by $109.9 million or 20.0% compared to as of December 31, 2020.

The return on average assets for the year ended December 31, 2021 decreased from 1.25% for the same period in 2020 to 1.28%. Return on average equity for the year ended December 31, 2021 was 14.40%, compared to 13.73% for the same period in 2020. American Bank’s return on average equity continues to outperform its peers and , as a result, it has been recognized as one of the Top 50 Community Banks in the Nation and the Best Community Bank in the Lehigh Valley, by American Banker Magazine.

President and CEO Mark Jaindl said, “Several factors played a critical role in our record financial performance in 2021, including a one-time after-tax gain of approximately $2,116,000 related to revenue generated from our program. of PPP loans, continued growth in ordinary earnings and Despite the challenges presented over the past year due to the ongoing pandemic, we exceeded $800 million in assets and saw continued growth in loans, which added to the assistance we provided to clients under the PPP loan program.

Jaindl continued, “2022 is a very special year for American Bank as it is our 25th anniversary. From the beginning, our mission has been to develop strong relationships with our customers based on a commitment to excellence exemplified by superior products and service. looking forward to celebrating this milestone with those who have helped us get to where we are today – our Board of Directors, our team members, our customers and our community. »

Net interest income for the year ended December 31, 2021 was $21,640,000, an increase of $1.8 million or 9.1% over the year ended December 31, 2020 Net interest income increased primarily due to significant growth in our loan portfolio, SBA revenue due to PPP loan originations and lower interest expense due to lower rates. interest paid on deposit products. Net interest margin decreased by 11 basis points to 2.89% for the year ended December 31, 2021, from 3.00% for the year ended December 31, 2020.

The allowance for loan losses for the year ended December 31, 2021 was $521,000, a decrease of $448,000 or 46.2% from the $969,000 recorded for the year ended December 31, 2020. provision for loan losses in 2020 was higher than in 2021 due to increases in qualitative factors in calculating the provision for loan losses in response to the COVID-19 pandemic and its impact on the economy. Loan quality remained high as of December 31, 2021 with two outstanding loans totaling $341,000. American Bank has an allowance for loan losses of $8.5 million or 1.38% of loans outstanding as of December 31, 2021, compared to $8.0 million or 1.34% of loans outstanding as of December 31 2020.

Non-interest income increased by $244,000 or 11.1% for the year ended December 31, 2021 compared to 2020. The increase in non-interest income was mainly due to net unrealized gains on equity securities at the holding company level in 2021, compared to net unrealized gains from losses in 2020 and higher net gains on sales of residential mortgages. The increase in non-interest income was offset by a decrease in death proceeds on bank-owned life insurance, which were received in 2020.

Non-interest expense increased by $631,000 or 6.2% for the year ended December 31, 2021 compared to 2020. The increase in non-interest expense is mainly due to the increase in salaries and benefits expenses, Pennsylvania bank stock tax, and FDIC insurance. American Bank’s operating expense to average assets ratio decreased to 1.39% for the year ended December 31, 2021, from 1.46% for the year ended December 31, 2020. The ratio American Bank’s operating expense on average assets remains one of the lowest in the country.

Income tax expense increased by $479,000 or 22.5% for the year ended December 31, 2021 compared to 2020. The effective tax rate of 20.5% for the year ended December 31, 2021 was comparable to the effective tax rate of 19.6% for the year ended December 31, 2020.

U.S. Bank continues to be a “well capitalized” institution by all regulatory capital standards.

Selected financial information

About American Bank

American Bank, headquartered in Allentown, Pennsylvania, is a locally owned community bank that has been dedicated to serving customers in the Lehigh Valley for nearly 25 years. American Bank is one of the earliest innovators of online banking technology and continues that tradition by providing customers across the country with online services that make banking easy and convenient. Their online banking service, American bank online (available on AMBK.com), allows customers to bank using a full range of real-time online banking services, including online bill payment, ACH Direct, inter-account transfers, history transactions, check images and electronic statements. At a time when customers need the ability to bank on the go, American Bank also offers mobile banking and mobile deposits for individuals and businesses.

American Bank offers a comprehensive selection of deposit and loan products and convenient services to meet consumer and business needs. Dedicated to providing its customers with superior personalized customer service, American Bank offers some of the best lending and deposit rates available and as a result has been awarded the Bankrate.com® Top Tier Award for consistently delivering annual returns in percentage (APY) among the best. highest reported.

In addition, it is recognized as a 5-star superior financial institution (the highest possible rating) by Bauer Financial Inc., naming it one of the strongest banks in the country and has been named one of the strongest banks in the world. nation’s safest by MSN Money. American Bank was ranked #1 by Morning Call’s Top Workplaces in the Lehigh Valley and was named one of the best places to work in Pennsylvania.

American bank online is a registered trademark for Internet financial services provided by American Bank, a state-licensed, FDIC-insured, full-service financial institution serving customers throughout the United States. American Bank is a member of the Federal Reserve System. American Bank is insured by the FDIC and an Equal Housing Lender.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995

Statements in this press release regarding American Bank’s business that are not historical facts, including expectations regarding future financial results, are “forward-looking statements” that involve risks and uncertainties that could so that actual results differ materially from these statements.

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