Tuesday, January 17th, 2023 American Bank Incorporated Reports Earnings for 2022

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, January 17, 2023

American Bank Incorporated (OTC Pink: AMBK), the parent company of American Bank, today announced earnings for the year ended December 31, 2022. Net income for the year was $10,115,000, or $1.57 per diluted share, an increase of $12,000 or 0.1%, compared to net income of $10,103,000, or $1.68 per diluted share, reported for the year ended December 31, 2021. Net income increased to a record level for the year ended December 31, 2022, even though there was non-recurring income recorded in 2021 of $2.0 million after tax from participation in the SBA's Paycheck Participation Program ("PPP") that did not occur in 2022. Earnings per diluted share decreased as a result of the increase in common shares outstanding due to the conversion of trust preferred shares into common shares.

Total assets increased $78.1 million or 9.2% to $927.3 million as of December 31, 2022 compared to $849.2 million as of December 31, 2021. Net loans increased $47.1 million or 7.8% from December 31, 2021. Total deposits increased $6.6 million or 1.0% from December 31, 2021. Investment securities available-for-sale increased $122.6 million or 157.5% and short-term borrowings increased $64.3 million or 171.6% from December 31, 2021.

Return on average assets for the year ended December 31, 2022 decreased to 1.13% from 1.28% for the same period in 2021. Return on average equity for the year ended December 31, 2022 was 12.71% compared to 14.40% for the same period in 2021. The declines in the foregoing ratios were the result of an increase in average total assets and average equity during the year 2022. 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, "We are pleased with the growth we experienced in 2022, highlighted by the increase in our loan portfolio, as well as the improvement in our investment portfolio yield, which was integral to the increase we experienced in interest income. Our entire team is to be commended for their efforts to make our 25^th anniversary a memorable one for our customers, shareholders, and community."

Jaindl continued, "As we enter 2023, American Bank will continue to closely monitor the risks that can accompany rising inflation and increasing interest rates. While inflation appears to have peaked in 2022, short-term interest rates may experience some additional increases in the first half of 2023, before receding in the second half of the year. We have positioned our balance sheet to mitigate those risks and will focus our attention on growth opportunities when available."

Net interest income for the year ended December 31, 2022 was $23,587,000, an increase of $1.9 million or 9.0% from the year ended December 31, 2021. Net interest income increased primarily due to the growth in our commercial loan portfolio and interest rate increases in our loan and investment portfolios. Net interest margin decreased 11 basis points to 2.78% for the year ended December 31, 2022 from 2.89% for the year ended December 31, 2021.

The provision for loan losses for the year ended December 31, 2022 was $388,000, a decrease of $133,000 or 25.5% from the $521,000 recorded for the year ended December 31, 2021. The provision for loan losses in 2021 was higher than 2022 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, 2022 with one non-accruing loan totaling $309,000. American Bank has an allowance for loan losses of $8.9 million or 1.35% of loans outstanding at December 31, 2022 compared to $8.5 million or 1.38% of loans outstanding at December 31, 2021.

Non-interest income decreased $692,000 or 28.4% for the year ended December 31, 2022 compared to 2021. The decrease in non-interest income was primarily the result of lower net unrealized gains on equity securities at the holding company level, lower net gains on sales of residential mortgage loans, and lower income generated by commercial loan interest rate swaps in 2022 compared to 2021.

Non-interest expense increased $1.4 million or 13.0% for the year ended December 31, 2022 compared to 2021. The increase in non-interest expense was primarily due to increases in salaries and employee benefit expenses, marketing and business development, and hosted services. American Bank's operating expense to average assets ratio remained unchanged at 1.39% for the years ended December 31, 2022 and 2021. American Bank's operating expense to average assets ratio remains one of the lowest in the country.

Income tax expense decreased $30,000 or 1.2% for the year ended December 31, 2022 compared to 2021. The effective tax rate of 20.3% for the year ended December 31, 2022 was comparable to the effective tax rate of 20.5% for the year ended December 31, 2021.

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 for over 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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