Friday, April 9th, 2021 American Bank Incorporated Reports 46.8% Increase in First Quarter 2021 Earnings, Pays Special Dividend, Increases Stock Repurchase

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, April 9, 2021

American Bank Incorporated (OTC Pink: AMBK), the parent company of American Bank, today announced earnings for the quarter ended March 31, 2021. Net income for the quarter was $2,599,000, or $0.41 per diluted share, an increase of $828,000 or 46.8% from $1,771,000, or $0.28 per diluted share, for the same quarter in the prior year. The increase in net income for the quarter was primarily attributable to increases in net interest income and non-interest income.

Total assets increased $103.5 million or 15.4% to $775.5 million as of March 31, 2021 compared to $672.0 million as of March 31, 2020. Net loans increased $82.2 million or 15.7% from March 31, 2020 due to organic loan growth and PPP loan originations, and total deposits increased $101.0 million or 20.3% from March 31, 2020.

President and CEO Mark Jaindl stated, 'In addition to the continued increase in earnings and asset growth, the Board of Directors took steps to enhance shareholder value with a Special Dividend of $0.08 per share payable on April 21^st, as well as an increase in the Stock Repurchase program to 5% of outstanding shares.'

The Bank participates in the Small Business Administration's ('SBA') Paycheck Protection Program ('PPP') established under The Coronavirus Aid, Relief and Economic Security Act (The CARES Act or the Act). This Act expanded the SBA's 7(a) loan program to help small businesses cover their near-term operating expenses and retain employees. These loans are fully guaranteed by the SBA, have terms of two or five years, and have fixed interest rates of 1% with payments deferred up to ten months following the coverage period. To date, the Bank has disbursed funds of more than $115.4 million to over 550 borrowers affected by COVID-19.

Jaindl commented, 'The SBA's PPP program enabled us to assist many businesses throughout the Lehigh Valley with the funding they needed and relied upon during a time of uncertainty. As this second round of the PPP ends, we look forward to continuing to provide the products and services our customers need and want throughout the remainder of 2021.'

Jaindl continued, 'It has been just over a year since the global pandemic caused by COVID-19 began and, while we continue to navigate through it, I am pleased to say that American Bank maintained its commitment to excellence while servicing its customers.'

Return on average assets for the quarter ended March 31, 2021 increased to 1.39% from 1.09% for the same period in 2020. Return on average equity for the quarter ended March 31, 2021 increased to 15.27% from 11.44% for the same period in 2020. American Bank's return on 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.

Net interest income for the quarter ended March 31, 2021 was $5.3 million, an increase of $880,000 or 19.7% from the quarter ended March 31, 2020. Net interest income increased primarily due to the significant growth in our portfolio and income received from the SBA because of the origination of PPP loans and a decrease in interest expense due to lower interest rates paid in deposit products. Net interest margin increased ten basis points to 3.01% at March 31, 2021 from 2.91% for the quarter ended March 31, 2020.

The provision for loan losses was $71,000 for the quarter ended March 31, 2021 compared to $21,000 for the quarter ended March 31, 2020. Loan quality remained strong at March 31, 2021 with two non-accruing loans totaling $341,000. American Bank has an allowance for loan losses of $8.1 million or 1.31% of loans outstanding at March 31, 2021 compared to $7.1 million or 1.34% of loans outstanding at March 31, 2020.

Non-interest income increased $400,000 or 126.2% to $717,000 for the quarter ended March 31, 2021 compared to the same quarter in 2020. The increase in non-interest income was primarily the result of unrealized gains on equity securities held at the holding company level and higher net gains on sales of residential mortgage loans compared to the same quarter in the prior year. The positive impact on net gains/losses on equity securities was due to the increased volatility in share prices of the Company's equity holdings, as unrealized gains and losses held in the reporting period are required to be recorded in earnings.

Non-interest expense increased $168,000 or 6.6% to $2.7 million for the quarter ended March 31, 2021 compared to the same quarter in 2020. The increase in non-interest expense was primarily due to an increase in salaries, benefits, and taxes due to the addition of three employees. American Bank's operating expense to average asset ratio decreased to 1.45% for the quarter ended March 31, 2021 compared to 1.57% for the prior period. American Bank's operating expense to average assets ratio remains one of the lowest in the country.

Income tax expense increased $234,000 or 53.3% to $673,000 for the quarter ended March 31, 2021 compared to the same quarter in 2020. The effective tax rate of 20.6% for the quarter ended March 31, 2021 was comparable to the effective tax rate of 19.9% for the quarter ended March 31, 2020.

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

American Bank Incorporated common stock last traded at $15.50 per share. American Capital Trust I Preferred Securities last traded at $14.00 per share.

American Bank Incorporated (OTC Pink: AMBK), the parent company of American Bank, today announced earnings for the quarter ended March 31, 2021. Net income for the quarter was $2,599,000, or $0.41 per diluted share, an increase of $828,000 or 46.8% from $1,771,000, or $0.28 per diluted share, for the same quarter in the prior year. The increase in net income for the quarter was primarily attributable to increases in net interest income and non-interest income.

Total assets increased $103.5 million or 15.4% to $775.5 million as of March 31, 2021 compared to $672.0 million as of March 31, 2020. Net loans increased $82.2 million or 15.7% from March 31, 2020 due to organic loan growth and PPP loan originations, and total deposits increased $101.0 million or 20.3% from March 31, 2020.

President and CEO Mark Jaindl stated, 'In addition to the continued increase in earnings and asset growth, the Board of Directors took steps to enhance shareholder value with a Special Dividend of $0.08 per share payable on April 21^st, as well as an increase in the Stock Repurchase program to 5% of outstanding shares.

The Bank participates in the Small Business Administration's ('SBA') Paycheck Protection Program ('PPP') established under The Coronavirus Aid, Relief and Economic Security Act (The CARES Act or the Act). This Act expanded the SBA's 7(a) loan program to help small businesses cover their near-term operating expenses and retain employees. These loans are fully guaranteed by the SBA, have terms of two or five years, and have fixed interest rates of 1% with payments deferred up to ten months following the coverage period. To date, the Bank has disbursed funds of more than $115.4 million to over 550 borrowers affected by COVID-19.

Jaindl commented, 'The SBA's PPP program enabled us to assist many businesses throughout the Lehigh Valley with the funding they needed and relied upon during a time of uncertainty. As this second round of the PPP ends, we look forward to continuing to provide the products and services our customers need and want throughout the remainder of 2021.

Jaindl continued, 'It has been just over a year since the global pandemic caused by COVID-19 began and, while we continue to navigate through it, I am pleased to say that American Bank maintained its commitment to excellence while servicing its customers.'

Return on average assets for the quarter ended March 31, 2021 increased to 1.39% from 1.09% for the same period in 2020. Return on average equity for the quarter ended March 31, 2021 increased to 15.27% from 11.44% for the same period in 2020. American Bank's return on 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.

Net interest income for the quarter ended March 31, 2021 was $5.3 million, an increase of $880,000 or 19.7% from the quarter ended March 31, 2020. Net interest income increased primarily due to the significant growth in our portfolio and income received from the SBA because of the origination of PPP loans and a decrease in interest expense due to lower interest rates paid in deposit products. Net interest margin increased ten basis points to 3.01% at March 31, 2021 from 2.91% for the quarter ended March 31, 2020.

The provision for loan losses was $71,000 for the quarter ended March 31, 2021 compared to $21,000 for the quarter ended March 31, 2020. Loan quality remained strong at March 31, 2021 with two non-accruing loans totaling $341,000. American Bank has an allowance for loan losses of $8.1 million or 1.31% of loans outstanding at March 31, 2021 compared to $7.1 million or 1.34% of loans outstanding at March 31, 2020.

Non-interest income increased $400,000 or 126.2% to $717,000 for the quarter ended March 31, 2021 compared to the same quarter in 2020. The increase in non-interest income was primarily the result of unrealized gains on equity securities held at the holding company level and higher net gains on sales of residential mortgage loans compared to the same quarter in the prior year. The positive impact on net gains/losses on equity securities was due to the increased volatility in share prices of the Company's equity holdings, as unrealized gains and losses held in the reporting period are required to be recorded in earnings.

Non-interest expense increased $168,000 or 6.6% to $2.7 million for the quarter ended March 31, 2021 compared to the same quarter in 2020. The increase in non-interest expense was primarily due to an increase in salaries, benefits, and taxes due to the addition of three employees. American Bank's operating expense to average asset ratio decreased to 1.45% for the quarter ended March 31, 2021 compared to 1.57% for the prior period. American Bank's operating expense to average assets ratio remains one of the lowest in the country.

Income tax expense increased $234,000 or 53.3% to $673,000 for the quarter ended March 31, 2021 compared to the same quarter in 2020. The effective tax rate of 20.6% for the quarter ended March 31, 2021 was comparable to the effective tax rate of 19.9% for the quarter ended March 31, 2020.

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

American Bank Incorporated common stock last traded at $15.50 per share. American Capital Trust I Preferred Securities last traded at $14.00 per share.

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 over 20 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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