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American Bank (American Bank) Return-on-Tangible-Equity : 8.83% (As of Mar. 2007)


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What is American Bank Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. American Bank's annualized net income for the quarter that ended in Mar. 2007 was $3.04 Mil. American Bank's average shareholder tangible equity for the quarter that ended in Mar. 2007 was $34.40 Mil. Therefore, American Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2007 was 8.83%.

The historical rank and industry rank for American Bank's Return-on-Tangible-Equity or its related term are showing as below:

AMBK's Return-on-Tangible-Equity is not ranked *
in the Banks industry.
Industry Median: 10.78
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

American Bank Return-on-Tangible-Equity Historical Data

The historical data trend for American Bank's Return-on-Tangible-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

American Bank Return-on-Tangible-Equity Chart

American Bank Annual Data
Trend Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06
Return-on-Tangible-Equity
Get a 7-Day Free Trial 9.30 8.30 8.24 8.19 7.21

American Bank Quarterly Data
Jun02 Sep02 Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.75 8.63 9.01 7.96 8.83

Competitive Comparison of American Bank's Return-on-Tangible-Equity

For the Banks - Regional subindustry, American Bank's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


American Bank's Return-on-Tangible-Equity Distribution in the Banks Industry

For the Banks industry and Financial Services sector, American Bank's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where American Bank's Return-on-Tangible-Equity falls into.



American Bank Return-on-Tangible-Equity Calculation

American Bank's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2006 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2006 )  (A: Dec. 2005 )(A: Dec. 2006 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2006 )  (A: Dec. 2005 )(A: Dec. 2006 )
=2.831/( (44.345+34.219 )/ 2 )
=2.831/39.282
=7.21 %

American Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2007 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2007 )  (Q: Dec. 2006 )(Q: Mar. 2007 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2007 )  (Q: Dec. 2006 )(Q: Mar. 2007 )
=3.036/( (34.219+34.583)/ 2 )
=3.036/34.401
=8.83 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2007) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


American Bank  (OTCPK:AMBK) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


American Bank Return-on-Tangible-Equity Related Terms

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American Bank (American Bank) Business Description

Traded in Other Exchanges
N/A
Address
4029 West Tilghman Street, Allentown, PA, USA, 18104
American Bank Inc is a United States-based holding company for American Bank. The bank offers deposit and loan products for consumer, business, institutional and governmental customers, including interest-bearing checking, money market accounts, and retirement accounts. It generates revenue from interest and dividend income on loans and investments.
Executives
John C Long director 2400 BERNVILLE ROAD, READING PA 19612

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