Friday, January 14th, 2022 American Bank Incorporated Reports Record Earnings for 2021; Increase of 16% from 2020

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, January 14, 2022

American Bank Incorporated (OTC Pink: AMBK), the parent company of American Bank, today announced earnings for the 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 $114.5 million or 15.6% to $848.8 million as of December 31, 2021 compared to $734.3 million as of December 31, 2020. Net loans increased $19.6 million or 3.3% from December 31, 2020, which was due to organic loan growth offset by PPP loan forgiveness payments received. Excluding PPP loans, net loans increased $54.4 million or 9.9% from December 31, 2020. Total deposits increased $109.9 million or 20.0% from December 31, 2020.

Return on average assets for the year ended December 31, 2021 increased to 1.28% from 1.25% for the same period in 2020. 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 was recognized as one of the Top 50 Community Banks in the nation, and the Top Community Bank in the Lehigh Valley, by American Banker Magazine.

President and CEO Mark Jaindl stated, "Several factors were integral to our record-breaking financial performance in 2021, including a one-time after-tax gain of approximately $2,116,000 relating to income generated from our PPP loan program, continued ordinary earnings growth, and strong asset quality. Despite the challenges presented in the past year due to the ongoing pandemic, we surpassed $800 million in assets and saw continual loan growth, which was in addition to the assistance we provided to customers through the PPP loan program."

Jaindl continued, "2022 is a very special year for American Bank as it is our 25th anniversary. From the beginning, it has been our mission to develop solid relationships with our customers based on a commitment to excellence illustrated by superior products and service. We look forward to celebrating this milestone with those who 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% from the year ended December 31, 2020. Net interest income increased primarily due to the significant growth in our loan portfolio, income received from the SBA due to originations of PPP loans, and a decrease in our interest expense due to lower interest rates paid on deposit products. Net interest margin decreased 11 basis points to 2.89% for the year ended December 31, 2021 from 3.00% for the year ended December 31, 2020.

The provision 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. The provision for loan losses in 2020 was higher than 2021 due to increases in qualitative factors in the Allowance for Loan Losses calculation in response to the COVID-19 pandemic and its impact on the economy. Loan quality remained strong at December 31, 2021 with two non-accruing loans totaling $341,000. American Bank has an allowance for loan losses of $8.5 million or 1.38% of loans outstanding at December 31, 2021 compared to $8.0 million or 1.34% of loans outstanding at December 31, 2020.

Non-interest income increased $244,000 or 11.1% for the year ended December 31, 2021 compared to 2020. The increase in non-interest income was primarily the result of net unrealized gains on equity securities at the holding company level in 2021 compared to net unrealized losses in 2020 and higher net gains on sales of residential mortgage loans. 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 $631,000 or 6.2% for the year ended December 31, 2021 compared to 2020. The increase in non-interest expense was primarily due to increases in salaries and employee benefit expenses, Pennsylvania bank shares tax, and FDIC insurance. American Bank's operating expense to average assets ratio decreased to 1.39% for the year ended December 31, 2021 compared to 1.46% for the year ended December 31, 2020. American Bank's operating expense to average assets ratio remains one of the lowest in the country.

Income tax expense increased $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.

American Bank continues to be a "well capitalized" institution as measured by all regulatory capital standards.

Selected Financial Information

About American Bank

American Bank, headquartered in Allentown, PA, is a locally-owned community bank dedicated to serving customers in the Lehigh Valley almost 25 years. American Bank is an early innovator of online banking technology and continues that tradition by providing customers across the country online services that make banking easy and convenient. Their online banking service, AmericanBank Online (available at AMBK.com), allows customers to bank using a full range of real-time online banking services including online bill pay, ACH Direct, transfers between accounts, transaction history, check images and e-Statements. At a time when customers need the ability to bank on the go, American Bank also has mobile banking and mobile deposit for consumer and business customers.

American Bank offers a complete selection of deposit and loan products and convenient services to suit the needs of consumers and businesses. Dedicated to providing customers superior, personalized customer service, American Bank offers some of the best loan and deposit rates available and as a result, has received the Bankrate.com® Top Tier award for consistently offering annual percentage yields (APYs) that were among the highest reported.

In addition, it 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 and was 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.

AmericanBank Online is a registered trademark 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. American Bank is FDIC insured 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 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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