American Bank Reports Third Quarter Earnings

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, Friday, October 30, 2009

Allentown, PA, October 30, 2009 – American Bank Incorporated (OTC BB: AMBK.OB), the parent company of American Bank, today announced earnings for the quarter ended September 30, 2009. For the quarter, the Company recorded a net loss of $928,000, or $(0.17) per diluted share. The net loss was the result of other than temporary impairment of pooled trust preferred securities in the amount of $1,948,000 net of taxes. Excluding the loss on pooled trust preferred securities, the Company recorded net income of $1,020,000, or $0.18 per diluted share.

Net interest income for the quarter ended September 30, 2009 was $2,973,000, an increase of $306,000 from the prior year quarter ended September 30, 2008. The increase in net interest income was a result of the improvement in the Company’s net interest margin to 2.60% for the quarter ended September 30, 2009 from 2.26% for the same quarter in the prior year. Total assets declined by $11.5 million to $478.7 million at the end of the quarter compared to $490.2 million at December 31, 2008. Non-interest expense increased $35,000 to $1,595,000 during the quarter ended September 30, 2009, compared to $1,560,000 for the quarter ended September 30, 2008, primarily due to the increase in FDIC insurance premiums in 2009.

Loan quality remained strong at September 30, 2009 with only $27,000 in non-performing loans. The low level of non-performing loans may be attributed to American Bank’s conservative underwriting standards. While non-performing loans are minimal, given the current economic environment American Bank has set aside reserves of over $4.4 million in the event they are needed.

American Bank is a "well capitalized" institution based upon all regulatory capital standards.

American Bank, Inc. common stock (AMBK.OB) last traded at $5.75 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 (AMBKP.OB) last traded at $6.80.

About American Bank
American Bank, a locally-owned community bank based in Allentown, PA, offers a complete selection of banking products and services to suit the needs of consumers and businesses and includes checking, money market, savings, certificates of deposit, consumer and commercial loans and Visa credit cards. American Bank is dedicated to providing customers superior, personalized customer service while offering 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. Their online banking service, pcbanker, allows customers to bank conveniently and delivers a full range of real-time online banking services free of charge including online bill payment and presentment, ACH Direct, transfers between accounts, transaction history, check images and e-Statements. American Bank is FDIC insured.

American Bank Online and pcbanker.com are registered 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 are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 Bank 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 Bank'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 Bank wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Bank wishes to advise readers that the factors listed above could affect the Bank's financial performance and could cause the Bank'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 Bank 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.

For additional information, please contact Mark W. Jaindl, President and Chief Executive Officer.