FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the Quarter Ended March 31, 2004

Commission File Number 0-11928

AMERICAN BANCORP, INC.

(337) 948-3056

NOT APPLICABLE

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—115,987 shares as of April 30, 2004

Table of Contents

AMERICAN BANCORP, INC.
(PARENT COMPANY ONLY)
BALANCE SHEETS
(In Thousands)

See Notes to Consolidated Financial Statements.

AMERICAN BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands)

See Notes to Consolidated Financial Statements.

AMERICAN BANCORP, INC.
(PARENT COMPANY ONLY)
STATEMENTS OF INCOME
(Unaudited)
(In Thousands )

See Notes to Consolidated Financial Statements.

AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In Thousands Except for Per Share Data)

See Notes to Consolidated Financial Statements

AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
For the Three Month Periods Ended March 31, 2004 & 2003
(Unaudited)
(In Thousands)

See Notes to Consolidated Financial Statements

AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In Thousands)

See Notes to Consolidated Financial Statements

     AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2004

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 three month period ended March 31, 2004 are not necessarily indicative of the results that may be expected for the year ended December 31, 2004.

     The balance sheet at December 31, 2003 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, 2003.

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 interests had loans outstanding totaling $1,394,000 at March 31, 2004.

NOTE 4- EARNING PER SHARE

     The earnings per share computations are based on weighted average number of shares outstanding during each quarter of 115,987 and 116,079 for the quarters ended March 31, 2004 and 2003, 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 $231,000 for the first three months of 2004 compared to $277,000 for the same period of 2003. On a per share basis, the net income was $1.99 for the first three months of 2004 compared to $2.39 for the same period of 2003. The Company recorded a provision for possible loan losses of $11,000 for the three months ended both March 31, 2004 and 2003. Net interest income decreased 3.4% to $930,000 for the first three months of 2004 compared to $963,000 for the same period of 2003.

     Total assets were $101,963,000 at March 31, 2004, an increase of $1,105,000 from December 31, 2003. Loans decreased by $2,004,000 or 5.1% from $39,305,000 at December 31, 2003 to $37,301,000 at March 31, 2004. Deposits increased by $795,000 or 0.9% from $85,629,000 at December 31, 2003 to $86,424,000 at March 31, 2004.

RESULTS OF OPERATIONS

     NET INTEREST INCOME. Net interest income for the three months ended March 31, 2004 totaled $930,000, an $33,000 decrease from the same period in 2003. The greatest contributing factors to this decrease were decreases in the yields on loans and investment securities, which were partially offset by decreases in the interest paid on interest- bearing deposits and increases in the average balances of investment securities. The overall effect of volume and rate changes on net interest income during the three month period ended March 31, 2004 was unfavorable.

     PROVISION FOR POSSIBLE LOAN LOSSES. The Company recorded provisions for possible loan losses of $11,000 for the first three months of both 2004 and 2003. As a percentage of outstanding loans, the allowance for possible loan losses was 1.77% and 1.67% at March 31, 2004 and December 31, 2003, respectively. The provision is determined by the level of net chargeoffs, the size of the loan portfolio, the level of nonperforming loans, anticipated economic conditions, and review of financial condition of specific customers.

     NONINTEREST INCOME. For the first three months of 2004 noninterest income decreased $15,000 or 8.9% compared to the same period of 2003.

Other noninterest income decreased by $7,000 or 20.0% compared to the same period of 2003. This decrease resulted from small decreases in several different components of other noninterest income for the first quarter of 2004.

There were no securities gains in the three month periods ended March 31, 2004 and 2003.

     NONINTEREST EXPENSE. For the first three months of 2004, noninterest expense increased $26,000 or 3.4% compared to the same period in 2003.

Salaries and employee benefits, the largest component of noninterest expense, increased by $8,000 or 2.1% for the first three months of 2004 as compared to the same period in 2003. This increase was attributed to adjustments to accruals for deferred compensation, an increase in employee compensation and a decrease in the cost of employee benefits.

Net occupancy expense also increased by $7,000 or 4.8% for the first three months of 2004 as compared to the same period in 2003.

     INCOME TAXES. The Company recorded provisions for income taxes of $55,000 for the three month period ended March 31, 2004 as compared to $83,000 for the same period of 2003.

FINANCIAL CONDITION

     LOANS. Loans were $37,301,000 at March 31, 2004; down by $2,004,000 or 5.1% from December 31, 2003.

TABLE I — COMPOSITION OF LOAN PORTFOLIO (In thousands)

     SECURITIES HELD TO MATURITY. Securities held to maturity were $1,600,000 at March 31, 2004; unchanged from December 31, 2003.

     SECURITIES AVAILABLE FOR SALE. Securities available for sale were $45,065,000 at March 31, 2004; which is up by $2,458,000 or 5.8% from December 31, 2003.

TABLE II — INVESTMENT SECURITIES (In thousands)

A comparison of the book values and the estimated market values of investment securities is as follows:

TABLE III — NONPERFORMING ASSETS

Nonperforming assets include nonaccrual loans, loans which are contractually 90 days or more 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 nonperforming 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 nonperforming loans that are current as to principal and interest payments are classified as nonperforming because there is a question concerning full collectibility of both principal and interest.

Nonperforming assets totaled $0 and $12,000 at March 31, 2004 and December 31, 2003, respectively.

The composition of nonperforming assets is illustrated below:

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

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 chargeoffs, 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 amounts deemed to be reasonably necessary to provide for the possibility of losses being incurred within the following categories of loans.

     DEPOSITS. As of March 31, 2004 total deposits have decreased by $795,000 or 0.9% from December 31, 2003. Noninterest-bearing deposits increased by $2,803,000 or 9.4% from December 31, 2003 to March 31, 2004. Interest-bearing deposits decreased by $2,008,000 or 3.6% from December 31, 2003 to March 31, 2004.

     CAPITAL. Shareholders’ equity totaled $ 14,507,000 at March 31, 2004, compared to $14,069,000 at December 31, 2003. The increase resulted from net income during the current quarter and an increase in unrealized gains in the market value of securities available for sale. 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

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

31.1		Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by the Company’s Principal Executive Officer
31.2		Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by the Company’s Principal Financial Officer
32.1		Certification pursuant to 18 U.S.C. Section 1350 by the Company’s Principal Executive Officer
32.2		Certification pursuant to 18 U.S.C. Section 1350 by the Company’s Principal Financial Officer
32.3		Disclosure of approval by the Company’s Audit Committee for the performance of non-audit services by the Company’s Independent Auditors
32.4		Disclosure on controls pursuant to 18 U.S.C. Section 1350 by the Company’s Principal Executive Officer
32.5		Disclosure 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.

INDEX TO EXHIBITS