AMBK American Bank Inc (PK)

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.