American Bank Completes $10 Million Offering of Trust Preferred Securities

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, Friday, April 05, 2002

American Bank Incorporated (NasdaqSC: AMBK), the parent company of American Bank, today announced that it has completed an offering of 1,200,000 shares of convertible trust preferred securities at a price of $8.50 per share, raising over $10 million in additional Tier 1 capital.

The preferred securities are convertible into shares of common stock on a one for one basis. American Bank Incorporated will pay cash distributions on the convertible preferred securities at an annual rate of 6.00%. Shares of the new securities will begin trading on the OTC Bulletin Board within two weeks, following the receipt of a symbol.

American Bank Incorporated common stock last traded at $8.75 per share and the American Bank warrants last traded at $2.30 per warrant. American Bank warrants are exercisable at $6.67 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.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.