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American Bank Reports Record Second Quarter Earnings

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, July 12, 2002

Allentown, PA, July 12, 2002 - American Bank, Inc. (NasdaqSC: AMBK), the parent company of American Bank, today announced record earnings for the quarter and six months ended June 30, 2002. Net income for the quarter was $609,000 or $.10 per diluted share, an increase of $308,000, or 102%, from the same period in the prior year. Net income for the six months ended June 30, 2002 was $1,198,000 or $.19 per diluted share, an increase of $638,000, or 114%, from the same period in the prior year.

The increase in earnings for the quarter is primarily attributable to an increase of $97.4 million of average earning assets and an increase of 9 basis points in the net interest margin compared to June 30, 2001. In addition, earnings were positively impacted by the Company's ability to control costs as evidenced by the decline in its operating expense to asset ratio from 1.58% for the quarter ended June 30, 2001 to 1.28% for the same period in 2002.

President and CEO Mark Jaindl stated, "We are pleased with the success of American Bank's business model which, by maintaining low operating expenses, gives us the ability to offer excellent rates to our customers on both loan and deposit products."

Jaindl continued, "Our control of operating costs and attention to asset quality has resulted in eleven straight quarters of increased profitability and a loan portfolio with no non-performing assets at June 30, 2002."

Chairman of the Board of Directors Frederick Jaindl added, "During the second quarter we took additional steps to control costs with the introduction of electronic statements and ACH Direct, a service which allows customers to transfer funds from other financial institutions electronically into American Bank accounts. Our Board of Directors and staff remain focused on increasing shareholder value and look forward to continued improvements throughout the remainder of 2002."

American Bank, Inc. common stock last traded at $6.95 per share and the American Bank, Inc. warrants last traded at $1.83 per warrant. The warrants are exercisable at $6.67 per warrant through June 30, 2003.
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