American Bank Declares Quarterly Dividend

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, Wednesday, February 17, 2010

Allentown, PA, February 17, 2010 – American Bank Incorporated (OTC BB: AMBK), the parent company of American Bank, today announced that on February 16, 2010, the Board of Directors declared a quarterly dividend of $0.05 per share of common stock to shareholders of record on March 1, 2010 and payable on April 1, 2010.

In addition, the Board of Directors declared a quarterly dividend of $0.05 per share of Series A preferred stock to shareholders of record on March 1, 2010 and payable on April 1, 2010.

American Bank, Inc. common stock last traded at $6.00 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 $7.00.

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.

"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.

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