American Bank Inc., parent company of American Bank in South Whitehall Township, is reporting record net income for 2018.
And while the company also reported record income in 2017, and has seen steady growth over the years, Mark Jaindl, president and CEO, said there are a couple of factors that make this year’s $6.8 million in earnings stand out.
First, he said 2017’s record-breaking earnings came with about $1.3 million in one-time earnings from the sale of securities.
And with growth in 2018 coming in at just over 23 percent, it was a significant jump.
“There were no types of unusual gains in 2018 and the last two years have not only been record years, but had double-digit increases. Twenty-three percent is really an exceptional increase,” Jaindl said.
He said the increase is primarily attributable to an increase in net interest income and a decrease in income tax expense.
He said the bank has also done an excellent job controlling expenses.
He noted that American Bank, which was one of the first in the country to offer internet banking, still maintains only one office housing all its staff.
• Net interest income for the year was $17.6 million, an increase of $820,000 from $16.8 million for the prior year.
• Total assets increased by $41.1 million or 7.1 percent to $621.9 million as of Dec. 31, 2018 compared to $580.8 million as of Dec. 31, 2017.
• Non-interest income decreased $1 million or 46.2 percent compared to 2017.
• Income tax expense decreased $2.4 million or 60 percent in 2018 compared to 2017. The decrease was from the tax law known as the Tax Cuts and Jobs Act, which reduced U.S. corporate tax rate from 35 percent to 21 percent.
Jaindl said he would like to see the bank continue to grow in a steady organic manner in 2019.
“The ideas is to keep a relatively moderate growth in our assets, 7 percent to 10 percent a year,” he said. “You have to be careful you’re taking on quality assets.”