AMBK American Bank Inc (PK)

American Bank, Inc. (OTC BB: AMBK.OB), the parent company of American Bank, today announced a 38% increase in earnings for the year ended December 31, 2007. Net income for the year was $3,920,000, or $0.61 per diluted share, an increase from $2,831,000, or $0.43 per diluted share, reported for the year ended December 31, 2006. The increase in net income for the year ended December 31, 2007 is the result of $1.35 million in net after-tax gains on available for sale securities, and an increase of $110,000 in net interest income. These increases were off-set by an increase of $170,000 in provisions for loan losses and an increase of $487,000 in non-interest expense. The increase in non-interest expense results from an increase in salaries and benefits of $253,000, an increase in professional fees of $110,000 and FDIC insurance premiums of $182,000. The increase in professional fees relates to the re-organization and de-registration completed in July 2007. The FDIC insurance premiums were not imposed in prior years. Net interest income for the year ended December 31, 2007 was $9,870,000, an increase of $110,000 from $9,760,000 for the prior year ended December 31, 2006. The increase in net interest income was a result of the improvement in the Company�s net interest margin to 2.04% for the year ended December 31, 2007 from 1.94% for the prior year. American Bank�s net loans outstanding decreased by $12.1 million, or 3.8%, to $307.9 million at December 31, 2007, while non-performing loans were less than $68,000 at year-end. Deposits increased by $7.3 million, or 2.0%, from $368.9 million to $376.2 at December 31, 2007. For the quarter ended December 31, 2007, American Bank, Inc. posted net income of $522,000, or $0.09 per diluted share, a decrease from $674,000, or $0.10 per diluted share, reported in the same period of the prior year. At December 31, 2007, the Company determined that a certain issue of FNMA preferred stock was other than temporarily impaired and recorded a charge of $316,000 to reduce the amortized cost of this security to market value on that date. As was previously reported, on November 21, 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 December 4, 2007 and payable on January 2, 2008. The Board of Directors also declared a quarterly dividend of $0.05 per share of Series A preferred stock to shareholders of record on December 4, 2007 and payable on January 2, 2008. American Bank, Inc. common stock last traded at $7.45 per share. American Bank, Inc. Series A preferred stock (AMBKO.OB) is listed on the OTC BB but has not traded to date. American Capital Trust I Preferred Securities last traded at $9.00. 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". 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 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) Unaudited � � � December 31, 2007 � 2006 Selected Financial Condition Data: Total assets $ 504,060 $ 504,595 Loans receivable, net 307,901 319,969 Allowance for loan losses 4,134 3,734 Securities available for sale (at fair value) 147,568 149,636 Securities held to maturity (at cost) 8,972 11,709 Deposits 376,153 368,995 Short-term debt 10,822 27,616 Long-term debt 72,615 61,734 Mandatory redeemable convertible debentures 10,474 10,503 Stockholders' equity 31,553 34,219 � Book value per share $ 5.54 $ 5.72 � Shares outstanding 5,696 6,020 � � � For the Three Months Ended Dec. 31, For the Year EndedDec. 31, 2007 2006 2007 2006 Selected Operating Data: Total interest income $ 7,391 $ 7,160 $ 29,151 $ 28,162 Total interest expense � 4,939 � � 4,834 � � 19,281 � � 18,402 � Net interest income 2,452 2,326 9,870 9,760 Provision for loan losses � 8 � � 25 � � 519 � � 349 � Net interest income after provision for loan losses � 2,444 � � 2,301 � � 9,351 � � 9,411 � Fees and service charges 48 48 184 192 Net gains (losses) on available for sale securities (316 ) - 2,052 (79 ) Net realized gain on sale of mortgage loans 13 13 58 57 Earnings from Bank-owned life insurance 86 89 343 342 Other income � 59 � � 63 � � 262 � � 243 � Total non-interest income (expense) � (110 ) � 213 � � 2,899 � � 755 � Total operating expense � 1,593 � � 1,505 � � 6,544 � � 6,058 � Income before taxes on income 741 1,009 5,706 4,108 Taxes on income � 219 � � 335 � � 1,786 � � 1,277 � Net income $ 522 � $ 674 � $ 3,920 � $ 2,831 � � Earnings per share-basic $ 0.09 � $ 0.12 � $ 0.67 � $ 0.46 � -diluted $ 0.09 � $ 0.10 � $ 0.61 � $ 0.43 � Weighted average shares outstanding for earnings per share calculation-basic � 5,714 � � 5,983 � � 5,846 � � 6,219 � -diluted � 6,943 � � 7,217 � � 7,075 � � 7,453 � � � � American Bank, Inc. Selected Financial Information Unaudited � � � For the Three Months Ended Dec. 31, For the Year Ended Dec. 31, 2007 2006 2007 2006 Performance Ratios (1): Return on assets (ratio of net income to average total assets) 0.42 % 0.53 % 0.78 % 0.54 % Return on equity (ratio of net income to average equity) 6.34 % 7.90 % 11.50 % 8.25 % Net interest margin (ratio of net interest income divided by average earning assets) 2.04 % 1.88 % 2.04 % 1.94 % Ratio of operating expense to average total assets 1.28 % 1.15 % 1.30 % 1.15 % Efficiency ratio (ratio of operating expenses divided by net interest income plus non-interest income) 58.82 % 59.28 % 49.78 % 56.70 % � 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 6900.85 % 5353.75 % Allowance for loan losses to loans receivable 1.33 % 1.12 % � Regulatory Capital Ratios-Bank: Tier I to average assets 8.27 % 8.20 % Tier I risk weighted assets 11.50 % 11.36 % Total capital to risk weighted assets 12.64 % 12.39 % � � (1) Ratios for three month periods are annualized.