American Bank Reports Record Earnings, Assets Exceed $320 Million

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, Monday, July 16, 2001

Allentown, PA, July 16, 2001 - American Bank (OTCBB: ABKA), serving the Lehigh Valley community and recognized as a leading provider of Internet banking and financial services nationwide, today announced earnings for the quarter and six months ended June 30, 2001. Net income for the quarter was $300,900, or $.07 per diluted share, an increase of $215,300 from the same period in the prior year. Net income for the six months ended June 30, 2001 was $560,200, or $.13 per diluted share, an increase of $432,300 from the same period in the prior year. The increases are primarily attributable to an increase of $146.7 million in earning assets.

President and CEO Mark Jaindl stated, "During the first half of 2001, the assets at American Bank increased by 31.5%, to $321.2 million, while the quality of our loan portfolio remained strong with no non-performing assets at June 30, 2001. In addition, we continue to add to our customer base, with total customers increasing by more than 20% during the first six months of the year." With customers in all 50 states, American Bank continues to develop banking relationships across the nation through its Internet banking solution, pcbanker.com.

For the quarter ended June 30, 2001, American Bank's operating expense to asset ratio declined to 1.58% from 2.29% for the same period in 2000. American Bank's efficiency ratio improved to 76.08% for the three months ended June 30, 2001 compared to 80.99% for the same period in the prior year.

Chairman of the Board of Directors Frederick Jaindl stated, "The progress of American Bank during the first half of 2001 has been positive and we look forward to our continued development and growth. We remain committed to serving our customers through the improvement of our products and services while maintaining a focus on enhancing shareholder value."

American Bank common stock last traded at $11.95 per share and the American Bank warrants last traded at $3.50 per warrant. American Bank warrants are exercisable at $10.00 per share through June 30, 2003.

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.comŽ 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 is a registered mark and pcbanker.com is a trade mark 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.