AMERICAN BANK INC. (PA) 
By
CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, January 18, 2013
American Bank Incorporated (OTC: AMBK), the parent company of American Bank, today announced record earnings for the year ended December 31, 2012. Net income for the year was $4,554,000, or $0.73 per diluted share, compared to net income of $4,525,000, or $0.73 per diluted share, reported for the year ended December 31, 2011. The increase in net income for the year ended December 31, 2012 is primarily the result of an increase in net interest income.
Net interest income for the year ended December 31, 2012 was $12.7 million, an increase of $0.3 million from $12.4 million for the prior year ended December 31, 2011. The increase in net interest income was a result of an increase in average earning assets of $19.3 million, partially offset by a decrease of 5 basis points in the net interest margin to 2.59% for the year ended December 31, 2012 from 2.62% for the prior year.
American Bank's net loans outstanding increased by $10.9 million, or 3.6%, to $311.1 million at December 31, 2012, the result of the recovery that is occurring in the local economy. There were no non-accruing loans at year-end. Deposits increased by $27.8 million, or 7.5%, from $372.2 million to $400.0 million at December 31, 2012.
The provision for loan losses for the year ended December 31, 2012 was $103,000, a decrease of $269,000 from the $372,000 recorded for the year 2011. At December 31, 2012, the allowance for loan losses was $4,483,000 or 1.42% of loans outstanding compared to 1.44% at December 31, 2011.
American Bank is a "well capitalized" institution as measured by all regulatory capital standards.
American Bank Incorporated common stock last traded at $6.80 per share. American Bank Incorporated Series A preferred stock (AMBKO) last traded at $6.00. American Capital Trust I Preferred Securities last traded at $7.75.
American Bank, rated 5-Stars by BauerFinancial, Inc. as one of the strongest financial institutions in the nation, is a locally-owned community bank based in Allentown, PA. American Bank offers a complete selection of banking products and services to suit the needs of consumers and businesses and includes checking, money market, savings, certificates of deposit, consumer and commercial loans and Visa credit cards. Dedicated to providing customers superior, personalized customer service, American Bank also offers some of the best loan and deposit rates available and as a result, for the past 11 years, has received the Bankrate.com® Top Tier award for consistently offering annual percentage yields (APYs) that were among the highest reported. Their online banking service, AmericanBank Online, which is accessible from the Bank's newly redesigned website at www.ambk.com, allows customers to bank conveniently and delivers a full range of real-time online banking services free of charge including online bill payment and presentment, ACH Direct, transfers between accounts, transaction history, check images and e-Statements. American Bank is 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 financial institution serving customers throughout the United States. American Bank is a member of the Federal Reserve System.
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