American Bank Reports Record Earnings, Total Assets Surpass $500 Million

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, Thursday, April 22, 2004

Allentown, PA, April 12, 2004 – American Bank, Inc. (NasdaqSC: AMBK), the parent company of American Bank, today announced record earnings for the quarter ended March 31, 2004. Net income for the quarter was $851,000, or $0.12 per diluted share, an increase of $39,000, or 4.80%, from the same period in the prior year. At the end of the quarter, assets totaled $505 million, up 8.60% from $465 million at March 31, 2003. Total deposits reached $350 million as of March 31, 2004, up from $316 million from the same time the previous year.

The improvement in first quarter earnings is attributable to an increase of $38.3 million of earning assets and an increase of 8 basis points in the net interest margin in the current quarter compared to the prior year. Also contributing to the improvement in net income was an increase of $173,000 of non-interest income.

President and CEO Mark Jaindl stated, “Our emphasis on serving small-to medium-sized commercial businesses throughout the Lehigh Valley proved beneficial for us as we increased our loan portfolio by $65.8 million since March 2003. Even with the significant increase in our loan portfolio, asset quality continues to be a priority and we again ended the quarter with no non-performing assets.”

On January 21, 2004, the Company’s Board of Directors announced the payment of its first annual dividend of $.10 per share payable on March 1, 2004. In addition, the Board initiated a dividend reinvestment program which offers a discount of up to 10% on shares purchased. As a result of significant shareholder participation in the reinvestment plan, the Company increased its capital, net of the cash dividend paid, by over $2 million during the first quarter.

Jaindl continued, “I would like to thank everyone who extended their support to my family after the loss of my father on March 29th. Fred served on a number of bank boards over the years including Kutztown National Bank, First National Bank of Allentown and Sovereign Bank. While serving on these boards, most recently, as Chairman of American Bank, he always put the interest of the shareholder above his own and was viewed by all as a strong shareholder advocate. This philosophy is surely representative of your Board of Directors and I will do my best to carry on his legacy. Fred will be deeply missed by everyone at American Bank.”

American Bank common stock last traded at $10.99 per share.

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.