American Bank Reports Second Quarter 2015 Earnings

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, July 22, 2015

American Bank Incorporated (OTC BB: AMBK), the parent company of American Bank, today announced earnings for the quarter and six months ended June 30, 2015. Net income for the quarter was $703,000 or $0.12 per diluted share, a decrease from $1,481,000 or $0.23 per diluted share for the second quarter of 2014. The decrease in net income for the quarter ended June 30, 2015 was attributable to an increase in the provision for loan losses of $347,000 in the second quarter of 2015 and the absence of a one-time net gain on sales of available for sale securities of $618,000 in the second quarter of 2014.

The provision for loan losses for the six months ended June 30, 2015 was $606,000, an increase of $546,000 from the provision of $60,000 recorded for the six months ended June 30, 2014. The provision for loan losses recorded for the quarter ended June 30, 2015 was $407,000 compared to $60,000 for the three months ended June 30, 2014. The provision for loan losses is a direct result of growth in the loan portfolio of 14.3% or $48.6 million since June 30, 2014.

Net income for the six months ended June 30, 2015 was $1.7 million, or $0.28 per diluted share, a decrease of $951,000 from the six months ended June 30, 2014. The primary reason for the decrease in net income for the six month period ended June 30, 2015 was an increase in the provision for loan losses of $546,000 and net gains on sales of available for sale securities of $829,000 realized in the first six months of 2014.

Net interest income for the quarter ended June 30, 2015 was $3,337,000, an increase of $123,000 from the quarter ended June 30, 2014. Average interest-earning assets for the quarter increased $7.1 million to $497.1 million at June 30, 2015 compared to the same quarter in 2014, while the net interest margin increased 6 basis points to 2.67%. Net interest income for the six months ended June 30, 2015 was $6.8 million, an increase of $382,000 from the six month period ended June 30, 2014. Average interest-earning assets for the six months ended June 30, 2015 increased $7.0 million to $497.7 million, compared to $490.7 million for the six months ended June 30, 2014. The net interest margin increased by 11 basis points to 2.72% for the six months ended June 30, 2015 from 2.61% for the six months ended June 30, 2014.

Non-interest income decreased $622,000 during the quarter ended June 30, 2015 as compared to the same quarter in 2014. The decrease was the result of gains on sales of available for sale securities of $618,000 realized in the second quarter of 2014. Non-interest income decreased $827,000 for the six months ended June 30, 2015 compared to the six months ended June 30, 2014. The decrease in non-interest income for the six months ended in 2015 resulted from gains on sales of available for sale securities of $829,000 realized in the first half of 2014.

Non-interest expense increased $331,000 for the quarter ended June 30, 2015 compared to the same quarter in 2014, the result of an increase in salaries and wages, employee benefits and marketing. Non-interest expense increased $448,000 for the six months ended June 30, 2015 compared to the six months ended June 30, 2014, the result of increases of $143,000 in salaries and wages, $96,000 in employee benefits, and $52,000 in marketing expenses.

Loan quality remained strong at June 30, 2015 with only one non-accruing loan. The low number of non-accruing loans may be attributed to American Bank's conservative underwriting standards. While there is only one non-accruing loan representing $1.7 million, given the current economic environment American Bank has set aside reserves of over $5.6 million in the event they are needed.

American Bank is a "well capitalized" institution under all regulatory capital standards.

American Bank Incorporated common stock last traded at $10.00 per share. American Capital Trust I Preferred Securities last traded at $11.00.

Selected Financial Information

About American Bank American Bank is a locally-owned community bank based in Allentown, PA. American Bank is recognized as a 5-Star Superior rated financial institution (the highest rating possible) by Bauer Financial Inc., designating it as one of the strongest banks in the nation as well as being named one of the safest banks in the nation by MSN Money. American Bank was ranked #1 by the Morning Call's Top Workplaces in the Lehigh Valley and has been named one of the Best Places to Work in Pennsylvania.

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 12 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 website at 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. In addition, both consumer and business customers can bank on the go using mobile banking which includes mobile deposit. American Bank is FDIC insured and is an Equal Housing Lender.

AmericanBank Online is a registered trade mark 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.

Statements in this press release regarding American Bank's business which are not historical facts, including expectations regarding future financial results, are "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materially from such statements.

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