10-Q 1 d00756e10vq.txt FORM 10-Q FOR QUARTER ENDING SEPTEMBER 30, 2002 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended September 30, 2002 Commission File Number 0-11928 AMERICAN BANCORP, INC. -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) LOUISIANA 72-0951347 ------------------------------- ------------------------------- (State or other jurisdiction of (I R S Employer I.D. Number) incorporation or organization) 321 EAST LANDRY STREET, OPELOUSAS, LA 70570 --------------------------------------- -------------------------- (Address of principal executive office) (Zip Code) (337) 948-3056 -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) NOT APPLICABLE -------------------------------------------------------------------------------- (Former name, address, fiscal year, if changed since last report) Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO --- --- APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date. Common stock, $5 Par Value----116,183 shares as of October 31, 2002 AMERICAN BANCORP, INC. (PARENT COMPANY ONLY) BALANCE SHEET (In Thousands)

~~June~~Sept. 30, 2002 Dec. 31, 2001 -------------- ------------- ASSETS (Unaudited) (Note 1) Cash on deposit with subsidiary $ 2312 $ 24 Investment in subsidiary 13,~~170~~758 12,235 ~~Dividend~~Dividends receivable 0 0 Due from subsidiary ~~107~~96 67 ------------- ------------- TOTAL ASSETS $ 13,~~300~~866 $ 12,326 ============= ============= LIABILITIES Accrued income taxes payable $ ~~102~~90 $ 61 Other liabilities 0 0 ------------- ------------- TOTAL LIABILITIES $ ~~102~~90 $ 61 ------------- ------------- SHAREHOLDERS' EQUITY Common stock, $5 par value; authorized 10,000,000 shares; issued 120,000 shares; 116,~~283~~183 and 116,589 shares outstanding, respectively $ 600 $ 600 Surplus 2,150 2,150 Retained earnings 10,~~037~~406 9,345 Treasury stock, 3,~~717~~817 and 3,411 shares at cost, respectively (~~237~~245) (213) Net unrealized gain (loss) on securities available for sale, net of tax ~~648~~865 383 ------------- ------------- TOTAL SHAREHOLDERS' EQUITY $ 13,~~198~~776 $ 12,265 ------------- ------------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 13,~~300~~866 $ 12,326 ============= =============

See Notes to Consolidated Financial Statements. AMERICAN BANCORP, INC. CONSOLIDATED BALANCE SHEETS (In Thousands)

~~June~~Sept. 30, 2002 Dec. 31, 2001 -------------- ------------- ASSETS (Unaudited) (Note 1) Cash and due from banks $ 5,~~604~~111 $ 5,321 Federal funds sold 26,~~475~~425 8,925 ------------- ------------- Total cash and cash equivalents $ 811,~~079~~536 $ 14,246 Interest bearing deposits with banks 0 99 Securities held to maturity 12,~~808~~106 2,306 Securities available for sale 3836,~~966~~258 35,049 Loans - net of allowance for loan losses 3839,~~363~~664 37,146 Bank premises and equipment 1,~~685~~656 1,771 Other real estate 0 0 Accrued interest receivable ~~609~~552 583 Other assets ~~486~~551 390 ------------- ------------- TOTAL ASSETS $ 8992,~~996~~323 $ 91,590 ============= ============= LIABILITIES Deposits: Non-interest bearing demand deposits $ 27,~~586~~614 $ 27,780 Interest bearing deposits: NOW accounts 9,~~559~~756 13,370 Money market accounts 3,~~000~~225 2,651 Savings 11,~~424~~261 10,626 Time deposits $ 100,000 or more 78,~~693~~223 7,311 Other time deposits 1617,~~623~~047 16,950 ------------- ------------- Total deposits $ 7577,~~885~~126 $ 78,688 Accrued interest payable 8679 131 Other liabilities ~~827~~1,342 506 ------------- ------------- TOTAL LIABILITIES $ 7678,~~798~~547 $ 79,325 ------------- ------------- SHAREHOLDERS' EQUITY Common ~~stock~~Stock, $5 par value; authorized 10,000,000 shares; issued 120,000 shares; 116,~~283~~183 and 116,589 shares outstanding, respectively $ 600 $ 600 Surplus 2,150 2,150 Retained earnings 10,~~037~~406 9,345 Treasury stock, 3,~~717~~817 and 3,411 shares at cost, respectively (~~237~~245) (213) Unrealized gain (loss) on securities ~~available~~Available for sale, net of tax ~~648~~865 383 ------------- ------------- TOTAL SHAREHOLDERS' EQUITY $ 13,~~198~~776 $ 12,265 ------------- ------------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 8992,~~996~~323 $ 91,590 ============= =============

See Notes to Consolidated Financial Statements. AMERICAN BANCORP, INC. (PARENT COMPANY ONLY) STATEMENTS OF INCOME (Unaudited) (In Thousands)

Three Months Ended ~~Six~~Nine Months Ended ~~June~~September 30, ~~June~~September 30, ---------------------------- --------------------------- 2002 2001 2002 2001 ----------- ----------- ----------- ----------- INCOME FROM SUBSIDIARY Dividends from bank subsidiary $ 300 $ 300 $ 30 $ 52 OPERATING EXPENSES Directors fees 3 3 69 69 Other expenses 0 0 01 1 ----------- ----------- ----------- ----------- TOTAL EXPENSES 3 3 610 710 ----------- ----------- ----------- ----------- Earnings before income tax and equity in undistributed earnings of subsidiary 27(3) 27(3) 2420 4542 Provision for income taxes 0 0 0 0 ----------- ----------- ----------- ----------- Earnings before equity in undistributed earnings of subsidiary 27(3) 27(3) 2420 4542 Equity in undistributed earnings of subsidiary ~~338~~372 ~~256~~335 ~~668~~1,041 ~~494~~829 ----------- ----------- ----------- ----------- Net ~~Income~~income $ ~~365~~369 $ ~~283~~332 $ ~~692~~1,061 $ ~~539~~871 =========== =========== =========== ===========

See Notes to Consolidated Financial Statements. AMERICAN BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In Thousands Except for Per Share Data)

Three Months Ended ~~Six~~Nine Months Ended ~~June~~September 30, ~~June~~September 30, ------------------------- ------------------------- 2002 2001 2002 2001 ----------- ----------- ----------- ----------- INTEREST INCOME: Interest and fees on loans $ ~~741~~773 $ ~~769~~803 $ 12,~~472~~245 $ 12,~~510~~313 Interest on investment securities: Taxable ~~414~~347 ~~394~~381 ~~789~~1,136 ~~775~~1,156 Tax-exempt ~~126~~129 ~~109~~114 ~~246~~375 ~~211~~325 Other interest 2034 5743 5589 ~~149~~192 ----------- ----------- ----------- ----------- TOTAL INTEREST INCOME 1,~~301~~283 1,~~329~~341 23,~~562~~845 23,~~645~~986 ----------- ----------- ----------- ----------- INTEREST EXPENSE: Interest on deposits 239 ~~402~~394 ~~519~~758 ~~802~~1,196 Interest on short-term borrowings 0 0 0 0 ----------- ----------- ----------- ----------- TOTAL INTEREST EXPENSE 239 ~~402~~394 ~~519~~758 ~~802~~1,196 ----------- ----------- ----------- ----------- NET INTEREST INCOME 1,~~062~~044 ~~927~~947 23,~~043~~087 12,~~843~~790 Provision for possible loan losses 10 11 2110 2132 31 ----------- ----------- ----------- ----------- Net interest income after provision for possible loan losses 1,~~052~~033 ~~916~~937 23,~~022~~055 12,~~822~~759 ----------- ----------- ----------- ----------- NON-INTEREST INCOME: Service charges on deposit accounts ~~132~~141 ~~134~~140 ~~266~~407 ~~267~~407 Investment securities gains (losses) 0 0 0 0 Other 2723 2115 78101 4964 ----------- ----------- ----------- ----------- TOTAL NON-INTEREST INCOME ~~159~~164 155 ~~344~~508 ~~316~~471 ----------- ----------- ----------- ----------- NON-INTEREST EXPENSE: Salaries and employee benefits ~~365~~386 ~~338~~324 ~~723~~1,109 ~~725~~1,049 Net occupancy expense ~~141~~149 ~~162~~150 ~~280~~429 ~~313~~463 Net cost of operation of O.R.E.O 0 0 0 0 Other ~~211~~167 ~~188~~171 ~~429~~596 ~~378~~549 ----------- ----------- ----------- ----------- TOTAL NON-INTEREST EXPENSE ~~717~~702 ~~688~~645 12,~~432~~134 12,~~416~~061 ----------- ----------- ----------- ----------- INCOME BEFORE INCOME TAXES ~~494~~495 ~~383~~447 ~~934~~1,429 ~~722~~1,169 Provision for income taxes ~~129~~126 ~~100~~115 ~~242~~368 ~~183~~298 ----------- ----------- ----------- ----------- NET INCOME $ ~~365~~369 $ ~~283~~332 $ ~~692~~1,061 $ ~~539~~871 =========== =========== =========== =========== Net income per share of common stock $ 3.1417 $ 2.4184 $ 59.9512 $ 47.5943 =========== =========== =========== ===========

See Notes to Consolidated Financial Statements AMERICAN BANCORP, INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY For the Nine Month Periods Ended September 30, 2002 & 2001 (Unaudited) (In Thousands)

ACCUMULATED OTHER ~~COMPREHENSIVE~~STOCK ~~COMMON~~ RETAINED COMPREHENSIVE TREASURY ~~INCOME~~COMPREHENSIVE ~~STOCK~~AMOUNT SURPLUS EARNINGS INCOME STOCK INCOME TOTAL ------- ------- --------- ------------- --------- ------------- ------------ Balance December 31, 2000 $ 600 $ 2,150 $ 8,442 $ 19 $ (135) $ 0 $ 11,076 Comprehensive income Net income (loss) -- ~~539~~-- 871 -- -- ~~539~~871 ~~539~~871 Other comprehensive income, net of tax: Change in unrealized gains (losses) on securities available for sale -- -- ~~314~~-- 604 -- ~~314~~604 ~~314~~604 ------------- Total comprehensive income -- -- -- -- -- $ ~~853~~1,475 ============= Purchase of treasury stock -- -- -- -- (4351) (4351) Dividends paid -- -- 0 -- -- 0 ------- ------- --------- ------------- --------- ------------ Balance , ~~June~~September 30, 2001 $ 600 $ 2,150 $ 89,~~981~~313 $ ~~333~~623 $ (~~178~~186) $11 12,~~886~~500 ======= ======= ========= ============= ========= ============ Balance December 31, 2001 $ 600 $ 2,150 $ 9,345 $ 383 $ (213) $ 0 $ 12,265 Comprehensive income Net income (loss) -- ~~692~~-- 1,061 -- -- ~~692~~1,061 ~~692~~1,061 Other comprehensive income, net of tax: Change in unrealized gains (losses) on securities available for sale -- -- ~~265~~-- 482 -- ~~265~~482 ~~265~~482 ------------- Total comprehensive income -- -- -- -- -- $ ~~957~~1,543 ============= Purchase of treasury stock -- -- -- -- (2432) (2432) Dividends paid -- -- -- 0-- -- ------- ------- --------- ------------- --------- ------------ Balance , ~~June~~September 30, 2002 $ 600 $ 2,150 $ 10,~~037~~406 $ ~~648~~865 $ (~~237~~245) $ 13,~~198~~776 ======= ======= ========= ============= ========= ============

See Notes to Consolidated Financial Statements AMERICAN BANCORP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In Thousands)

~~Six~~Nine Months Ended ~~June~~September 30, ------------------------------- 2002 2001 ------------ -------------- OPERATING ACTIVITIES Net income $ ~~692~~1,061 $ ~~539~~871 Adjustments to reconcile net income to net cash provided by operating activities: Discount accretion, net of premium amortization on investment securities (~~124~~194) (72119) Depreciation 82124 85130 Amortization of software 2336 0 Provision for loan loss 2131 2131 (Gain) loss on disposal of assets 0 0 (Increase) decrease in assets: Other real estate owned 0 0 Accrued interest receivable ~~(25)~~31 6195 Other assets 15 (354) 130 Increase (decrease) in liabilities: Accrued interest payable (4551) (39) Other liabilities ~~184~~587 ~~301~~584 ------------ ------------ Net cash provided by operating activities $ ~~823~~1,571 $ ~~929~~1,713 ------------ ------------ INVESTING ACTIVITIES (Increase) decrease in interest bearing deposits with banks $ 99 $ 99199 Proceeds from sales & maturities of available for sale securities 714,~~738~~814 1112,~~950~~646 Proceeds from sales & maturities of held to maturity securities 1,800 12,~~200~~700 Purchases of available for sale securities (1115,~~129~~095) (1115,~~359~~831) Purchases of held to maturity securities (1,~~303~~603) (511) (Increase) decrease in loans (12,~~238~~549) (34,~~584~~602) Purchases of property & equipment (~~126~~152) (~~282~~446) Proceeds from sale of property & equipment 0 0 Other ~~(4)~~0 0 ------------ ------------ Net cash provided by (used in) investing activities $ (42,~~163~~686) $ (25,~~487~~845) ------------ ------------ FINANCING ACTIVITIES Increase (decrease) in demand deposits, transaction accounts and savings $ (2,~~858~~572) $ (34,~~739~~091) Increase (decrease) in time deposits 551,010 23,~~116~~039 Dividends paid 0 0 Purchase of treasury stock (2433) (4351) ------------ ------------ Net cash provided by (used in) financing activities $ (21,~~827~~595) $ (1,~~666~~103) ------------ ------------ Increase (decrease) in cash and cash equivalents $ (62,~~167~~710) $ (35,~~224~~235) Cash and cash equivalents at beginning of year 14,246 11,676 ------------ ------------ Cash and cash equivalents at end of period $ 811,~~079~~536 $ 86,~~452~~441 ============ ============ SUPPLEMENTAL DISCLOSURES: Cash payments for: Interest expense $ ~~564~~810 $ ~~805~~1,205 ============ ============ Income taxes $ ~~217~~364 $ 130 ============ ============

See Notes to Consolidated Financial Statements AMERICAN BANCORP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2002 NOTE 1 - A BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted principles of accounting for instructions to Form 10-Q and Article 10 of Regulations S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments ( consisting of normal recurring accruals ) considered necessary for a fair presentation have been included. Operating results for the nine month period ended September 30, 2002 are not necessarily indicative of the results that may be expected for the year ended December 31, 2002. The balance sheet at December 31, 2001 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in American Bancorp, Inc.'s annual report on Form 10-K for the year ended December 31, 2001. NOTE 2 - IMPAIRED LOANS In accordance with Statement of Financial Accounting Standards (SFAS) No. 114, interest payments received on impaired loans are applied to principal if there is doubt as to the collectibility of the principal; otherwise, these receipts are recorded as interest income. As it relates to in-substance foreclosures, SFAS No. 114 requires that a creditor continue to follow loan classification on the balance sheet unless the creditor receives physical possession of the collateral. The Company had no in-substance foreclosures in foreclosed assets to transfer to nonperforming loans and no related reserve for losses to transfer to the reserve for possible loan losses. NOTE 3 - RELATED PARTIES Directors, executive officers, and 10% shareholders and their related interest had loans outstanding totaling $1,175,000 at September 30, 2002. NOTE 4- EARNINGS PER SHARE The earnings per share computations are based on weighted average number of shares outstanding during each quarter of 116,250 and 116,931 for the quarters ended September 30, 2002 and 2001, respectively and during each nine month period of 116,352 and 117,154 for the nine month periods ended September 30, 2002 and 2001, respectively. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Management's Discussion presents a review of the major factors and trends affecting the performance of the Company and its bank subsidiary and should be read in conjunction with the accompanying consolidated financial statements and notes. OVERVIEW The Company reported net income of $1,061,000 for the first nine months of 2002 compared to $871,000 for the same period of 2001. On a per share basis, the net income was $9.12 for the first nine months of 2002 compared to $7.43 for the same period of 2001 and $3.17 for the quarter ended September 30, 2002 compared to $2.84 for the same quarter of 2001. The Company recorded a provision for possible loan losses of $32,000 and $31,000 for the nine months ended September 30, 2002 and 2001, respectively. Net interest income increased 10.65% to $3,087,000 for the first nine months of 2002 compared to $2,790,000 for the same period of 2001. Total assets were $92,323,000 at September 30, 2002, an increase of $733,000 from December 31, 2001. Loans increased by $ 2,518,000 or 6.78% from $37,146,000 at December 31, 2001 to $39,664,000 at September 30, 2002. Deposits decreased by $1,562,000 or 2.00% from $78,688,000 at December 31, 2001 to $77,126,000 at September 30, 2002. RESULTS OF OPERATIONS NET INTEREST INCOME. Net interest income for the nine months ended September 30, 2002 totaled $3,087,000, a $297,000 increase from the same period in 2001. The greatest contributing factors to this increase was a decrease in the interest paid on deposits, which was reduced by a decrease in the interest earned on loans. The overall effect of volume and rate changes on net interest income during the three month period ended September 30, 2002 was favorable. PROVISION FOR POSSIBLE LOAN LOSSES. The Company recorded provisions for possible loan losses of $32,000 and $31,000 for the first nine months of 2002 and 2001, respectively. The recognition of this provision resulted from growth in the loan portfolio and is not a reflection of a change in asset quality. As a percentage of outstanding loans, the allowance for possible loan losses was 1.55% and 1.60% at September 30, 2002 and December 31, 2001, respectively. The provision is determined by the level of net charge offs, the size of the loan portfolio, the level of nonperforming loans, anticipated economic conditions, and review of financial condition of specific customers. NON-INTEREST INCOME. For the first nine months of 2002 non-interest income increased $37,000 or 7.86% compared to the same period of 2001. Other non-interest income increased by $37,000 or 57.81% compared to the same period of 2001. The increase is the result of an increase in fee income from taking mortgage applications for the first nine months of 2002. There were no securities gains in the nine month periods ended September 30, 2002 and 2001. NON-INTEREST EXPENSE. For the first nine months of 2002 non-interest expense increased $73,000 or 3.54% compared to the same period in 2001. Salaries and employee benefits, the largest component of noninterest expense, increased by $60,000 or 5.72% for the first nine months of 2002 as compared to the same period in 2001. This increase was attributed to an increase in the cost of benefits provided to employees and an overall increase in salaries. Net occupancy expense decreased by $34,000 or 7.34% for the first nine months of 2002 as compared to the same period in 2001. INCOME TAXES. The Company recorded provisions for income taxes of $368,000 for the nine month period ended September 30, 2002 as compared to $ 298,000 for the same period of 2001. FINANCIAL CONDITION LOANS. Loans were $39,664,000 at September 30, 2002; up by $2,518,000 or 6.78% from December 31, 2001. TABLE I - COMPOSITION OF LOAN PORTFOLIO (In thousands)

~~June~~Sept. 30, 2002 Dec. 31, 2001 -------------- ------------- Commercial, ~~Financial~~financial and ~~Agricultural~~agricultural ~~Loans~~loans $ 7,~~503~~739 $ 6,738 Real ~~Estate~~estate ~~Construction~~construction ~~Loans~~loans 12,~~612~~004 1,690 Real ~~Estate~~estate ~~Mortgage~~mortgage ~~Loans~~loans 24,~~153~~735 23,604 Consumer ~~Loans~~loans 5,~~709~~811 5,719 Industrial ~~Revenue~~revenue ~~Bonds~~bonds 0 0 ------------- ------------- TOTAL LOANS $ 3840,~~977~~289 $ 37,751 Allowance for possible loan losses ~~614~~625 605 Unearned income 0 0 ------------- ------------- $ 3839,~~363~~664 $ 37,146 ============= =============

SECURITIES HELD TO MATURITY. Securities held to maturity were $2,106,000 at September 30, 2002; down by $200,000 or 8.67% from December 31, 2001. SECURITIES AVAILABLE FOR SALE. Securities available for sale were $36,258,000 at September 30, 2002; up by $1,209,000 or 3.45% from December 31, 2001. TABLE II - INVESTMENT SECURITIES (In thousands) A comparison of the book value and estimated market value of investment securities is as follows:

~~June~~Sept. 30, 2002 --------------------------------------------------------------- HELD-TO-MATURITY AVAILABLE-FOR-SALE AMORT MARKET AMORT MARKET COST VALUE COST VALUE ------------ ------------ ------------ ------------ U.S. Treasury $ 12,~~808~~106 $ 12,~~828~~151 $ -- $ -- U.S. Government Agencies 0 0 1614,~~910~~940 1715,~~211~~237 Mortgaged-backed securities 0 0 87,~~727~~786 8,~~959~~047 State & Political Subdivisions 0 0 12,~~164~~038 12,~~612~~790 Equity securities 0 0 184 184 ------------ ------------ ------------ ------------ TOTAL $ 12,~~808~~106 $ 12,~~828~~151 $37 34,~~985~~948 $ 3836,~~966~~258 ============ ============ ============ ============

Dec. 3130, 2001 --------------------------------------------------------------- HELD-TO-MATURITY AVAILABLE-FOR-SALE AMORT MARKET AMORT MARKET COST VALUE COST VALUE ------------ ------------ ------------ ------------ U.S. Treasury $ 2,306 $ 2,354 $ -- $ -- U.S. Government Agencies 0 0 14,070 14,290 Mortgaged-backed securities 0 0 8,992 9,133 State & Political Subdivisions 0 0 11,258 11,477 Equity ~~Securities~~securities 0 0 149 149 ------------ ------------ ------------ ------------ TOTAL $ 2,306 $ 2,354 $ 34,469 $ 35,049 ============ ============ ============ ============

TABLE III - NON-PERFORMING ASSETS Non-performing assets include non-accrual loans, loans which are contractually 90 days past due, restructured loans, and foreclosed assets. Restructured loans are loans which, due to a deteriorated financial condition of the borrower, have a below market yield. Interest payments received on non-performing loans are applied to reduce principal if there is doubt as to the collectibility of the principal; otherwise, these receipts are recorded as interest income. Certain non-performing loans that are current as to principal and interest payments are classified as non-performing because there is a question concerning full collectibility of both principal and interest. Non-performing assets totaled $0 at September 30, 2002, a $32,000 (100.00 %) decrease from December 31, 2001. The composition of nonperforming assets are illustrated below:

~~June~~Non-performing loans: Sept. 30, 2002 Dec. 31,2001 (In thousands) -------------- ------------- ~~Non-Performing~~ Loans: ~~(In thousands) Loans~~ on non-accrual $ -- $ 8 Restructured loans which are not on non-accrual 0 24 ------------- ------------- Total ~~nonperforming~~non-performing loans 0 32 Other real estate and repossessed assets received in complete or partial satisfaction of loan obligation 0 0 ------------- ------------- TOTAL ~~NONPERFORMING~~NON-PERFORMING ASSETS $ -- $ 32 ============= ============= Loans past due 90 days or more as to principal or interest, but not on non-accrual $ 5350 $ 16 ============= =============

TABLE IV - ANALYSIS OF ALLOWANCE FOR LOAN LOSSES (In thousands)

~~June~~Sept. 30, 2002 Dec. 31, 2001 -------------- ------------- Beginning balance $ 605 $ 579 Charge-offs: Commercial, financial and agricultural loans 0-- (3) Real estate - construction loans 0-- 0-- Real estate - mortgage loans (43) 0-- Installment loans to individuals (89) (15) ------------- ------------- Total charge-offs (12) (18) ------------- ------------- Recoveries: Commercial, financial and agricultural loans 0-- 0-- Real estate - construction loans 0-- 0-- Real estate - mortgage loans 0-- 0-- Installment loans to individuals 0-- 2 ------------- ------------- Total recoveries 0 2 ------------- ------------- Net (charge-offs) recoveries (12) (16) ------------- ------------- Provision charged against income 2132 42 ------------- ------------- Balance at end of period $ ~~614~~625 $ 605 ============= ============= Ratio of net (charge-offs) recoveries during the period to average loans outstanding during the period -(0.03%) -(0.05%) ============= =============

The present level of the allowance for loan losses is considered adequate to absorb future potential loan losses. In making this determination, management considered asset quality, the level of net loan charge-offs, as well as current economic conditions and market trends. TABLE V - ALLOCATION OF THE ALLOWANCE FOR LOAN LOSSES (In thousands) The allowance for possible loan losses has been allocated according to the amount deemed to be reasonably necessary to provide for the possibility of losses being incurred within the following categories of loans.

~~June~~Sept. 30, 2002 Dec. 31, 2001 ------------------------------ ------------------------------ % OF LOANS % OF LOANS TO TOTAL TO TOTAL AMOUNT LOANS AMOUNT LOANS ------------ ------------ ------------ ------------ Commercial, financial and agricultural loans $ ~~132~~134 19% $ 113 18% Real estate - construction loans 1112 45% 8 4% Real estate - mortgage loans ~~246~~248 6261% 257 63% Consumer loans ~~225~~231 15% 227 15% Industrial revenue bonds 0 0% 0 0% ------------ ------------ $ ~~614~~625 100% $ 605 100% ============ ============

DEPOSITS. As of September 30, 2002 total deposits have decreased by $1,562,000 or 2.00% from December 31, 2001. Non-interest bearing deposits decreased by $166,000 or 0.60% from December 31, 2001 to September 30, 2002. Interest bearing deposits decreased by $1,396,000 or 2.74% from December 31, 2001 to September 30, 2002. CAPITAL. Shareholders' equity totaled $13,776,000 at September 30, 2002, compared to $12,265,000 at December 31, 2001. The increase is primarily the result of year to date net income. Risk-based capital and leverage ratios for the Company and the bank subsidiary exceed the ratios required for the designation as a "well-capitalized" institution under regulatory guidelines. TABLE VI - CAPITAL RATIOS

~~June~~AMERICAN BANK & TRUST COMPANY Sept. 30, 2002 Dec. 31, 2001 (Bank subsidiary) -------------- ------------- ~~AMERICAN BANK & TRUST COMPANY (Bank subsidiary)~~ Risk-based capital: Tier 1 risk-based capital ratio 28.2415% 27.16% Total risk-based capital ratio 29.4940% 28.41% Leverage ratio 1314.7305% 14.14%

PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS In the normal course of business, the bank becomes involved in legal proceedings. It is the opinion of management that the resulting liability, if any, for pending litigation is negligible. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits 99.1 Certification pursuant to 18 U.S.C. Section 1350 by the Company's Principal Executive Officer 99.2 Certification pursuant to 18 U.S.C. Section 1350 by the Company's Principal Financial Officer 99.3 Disclosure of approval by the Company's Audit Committee for the performance of non-audit services by the Company's Independent Auditors 99.4 Disclosures on controls pursuant to 18 U.S.C. Section 1350 by the Company's Principal Executive Officer 99.5 Disclosures on controls pursuant to 18 U.S.C. Section 1350 by the Company's Principal Financial Officer (b) Reports on Form 8-K NONE SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized to sign on behalf of the registrant. AMERICAN BANCORP, INC. --------------------------------- (Registrant) November 4, 2002 /s/ Salvador L. Diesi, Sr. ---------------------- --------------------------------- DATE Salvador L. Diesi, Sr. Chairman of the Board/President November 4, 2002 /s/ Ronald J. Lashute ---------------------- --------------------------------- DATE Ronald J. Lashute Secretary/Treasurer of the Board

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Ronald J. Lashute, certify that: 1. I have reviewed this quarterly report on Form 10-Q of American Bancorp, Inc.; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report ("Evaluation Date"); and c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or other persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weakness in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this quarterly report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. November 4, 2002 /s/ Ronald J. Lashute ------------------------ ------------------------ DATE Ronald J. Lashute Chief Executive Officer CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, George Hill Comeau, certify that: 1. I have reviewed this quarterly report on Form 10-Q of American Bancorp, Inc.; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report ("Evaluation Date"); and c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or other persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weakness in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this quarterly report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. November 4, 2002 /s/ George Hill Comeau ------------------------ ------------------------ DATE George Hill Comeau Chief Financial Officer INDEX TO EXHIBITS

~~Exhibit~~EXHIBIT ~~No.~~NUMBER ~~Description~~DESCRIPTION -------~~----~~ ----------- 99.1 Certification pursuant to 18 U.S.C. Section 1350 by the Company's Principal Executive Officer 99.2 Certification pursuant to 18U.S.C. Section 1350 by the Company's Principal Financial Officer 99.3 Disclosure of approval by the Company's Audit Committee for the performance of non-audit services by the Company's Independent Auditors pursuant to U.S.C. Section 1350 99.4 Disclosure on controls pursuant to U.S.C. Section 1350 by the Company's Principal Executive Officer 99.5 Disclosure on controls pursuant to U.S.C. Section 1350 by the Company's Principal Financial Officer

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