American Bank of Allentown said it had record net income for 2022 as it announces its earnings for the year ended Dec. 31.
According to a release, net income for the year was $10.12 million, or $1.57 per diluted share, an increase of $12,000 or 0.1%, compared to net income of $10.10 million, or $1.68 per diluted share, reported for the year ended Dec. 31, 2021.
President and CEO Mark Jaindl said net income increased to a record level for the year even though there was non-recurring income recorded in 2021 of $2 million after tax from participation in the SBA’s Paycheck Participation Program (“PPP”) that did not occur in 2022.
However, earnings per diluted share decreased as a result of the increase in common shares outstanding due to the conversion of trust preferred shares into common shares.
Total assets increased $78.1 million or 9.2% to $927.3 million as of the year’s end compared to $849.2 million as of Dec. 31, 2021.
Net loans increased $47.1 million or 7.8% from Dec. 31, 2021.
Total deposits increased $6.6 million or 1.0% from December 31, 2021. Investment securities available-for-sale increased $122.6 million or 157.5% and short-term borrowings increased $64.3 million or 171.6% from December 31, 2021.
We are pleased with the growth we experienced in 2022, highlighted by the increase in our loan portfolio, as well as the improvement in our investment portfolio yield, which was integral to the increase we experienced in interest income. Our entire team is to be commended for their efforts to make our 25th anniversary a memorable one for our customers, shareholders, and community,” said Jaindl.
Return on average assets for the year decreased to 1.13% from 1.28% for the same period in 2021.
Return on average equity for the year was 12.71% compared to 14.40% for the same period in 2021.
The declines in the foregoing ratios were the result of an increase in average total assets and average equity during the year 2022, Jaindl said.
“As we enter 2023, American Bank will continue to closely monitor the risks that can accompany rising inflation and increasing interest rates,” Jaindl said. “While inflation appears to have peaked in 2022, short-term interest rates may experience some additional increases in the first half of 2023, before receding in the second half of the year. We have positioned our balance sheet to mitigate those risks and will focus our attention on growth opportunities when available.”