American Bank Now Offering CheckFree Bill Payment

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, Friday, August 27, 2004

Allentown, PA, August 27, 2004 --- American Bank (NasdaqSC: AMBK), serving the Lehigh Valley community in eastern Pennsylvania and recognized as a leading provider of Internet banking and financial services nationwide, today announced the enhancement of the Bank’s web-based bill payment services currently available to personal deposit customers with online access through the Bank’s web site, pcbanker.com. The implementation of the upgraded bill payment system improved upon the existing system through the addition of new features and improved functionality.

American Bank partnered with PSCU Financial Services, Inc. to upgrade the web-based bill payment services currently a part of their pcbanker online banking solution. The bill payer service uses CheckFree Corporation’s industry leading, fully integrated, end-to-end billing and payment solution. With this service, members can pay bills from the Bank’s online banking platform with a single, seamless click. The bill payer service includes both bill payment and bill presentment, so users can receive bills electronically from a growing list of e-billers (over 320), and can pay anyone, anytime, anywhere.

President and CEO Mark Jaindl stated, “We are committed to offering our customers superior products and services. We maintain that commitment by upgrading our existing bill payment system to one provided by an industry leader such as CheckFree, whose solution provides extensive bill payment and bill presentment functionality. We are confident that existing and new customers alike will enjoy the benefits now available through our improved pcbanker bill payment.”

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.

About PSCU Financial Services
PSCU Financial Services is the nation's largest Credit Union Service Organization (CUSO). As a non-profit cooperative, the company is owned by more than 500 member credit unions nationwide, representing more than 8 million cardholder accounts and 200,000 online bill payment subscribers. PSCU Financial Services maintains its headquarters and Eastern operations center in St. Petersburg, Florida. The company is also supported by a West Coast operations center based in Phoenix, Arizona.

Established in 1977, the company provides a broad array of cost-effective, high quality financial services that include credit, debit, ATM, bill payment and contact center solutions. PSCU Financial Services uniquely offers its members a full range of processing options, any combination from full service to in-house pass through processing for credit, debit and ATM transactions. As the leader in the credit union industry, the company offers gateway access to national and regional networks. It also provides full function ATM terminal driving services. For more information, visit the company's Web site at www.pscufs.com.

"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.