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 June 30, 2004

Commission File Number 0-11928

AMERICAN BANCORP, INC.

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 þ NO o

     Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act. Yes o No þ

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 July 31, 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)
INCOME STATEMENT
(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 Six Month Periods Ended June 30, 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
June 30, 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 six month period ended June 30, 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 $1,422,000 at June 30, 2004.

NOTE 4 — EARNINGS PER SHARE

     The earnings per share computations are based on weighted average number of shares outstanding during each quarter of 115,987 and 115,989 for the quarters ended June 30, 2004 and 2003, respectively and during each six month period of 115,987 and 116,034 for the six month periods ended June 30, 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 $405,000 for the first six months of 2004 compared to $525,000 for the same period of 2003. On a per share basis, the net income was $3.49 for the first six months of 2004 compared to $4.52 for the same period of 2003. The Company recorded a provision for possible loan losses of $21,000 and $21,000 for the six months ended June 30, 2004 and 2003, respectively. Net interest income decreased 1.9% to $1,846,000 for the first six months of 2004 compared to $1,881,000 for the same period of 2003.

     Total assets were $97,383,000 at June 30, 2004, a decrease of $3,475,000 from December 31, 2003. Loans increased by $296,000 or 0.8% from $39,305,000 at December 31, 2003 to $39,601,000 at June 30, 2004. Deposits decreased by $2,716,000 or 3.2% from $85,629,000 at December 31, 2003 to $82,913,000 at June 30, 2004.

RESULTS OF OPERATIONS

     NET INTEREST INCOME. Net interest income for the six months ended June 30, 2004 totaled $1,846,000, a $35,000 decrease from the same period in 2003. The greatest contributing factors to this decrease were decreases in the yields on investment securities and loans, which were partially offset by decreases in the interest paid on interest bearing deposits. The overall effect of volume and rate changes on net interest income during the six month period ended June 30, 2004 was unfavorable.

     PROVISION FOR POSSIBLE LOAN LOSSES. The Company recorded provisions for possible loan losses of $21,000 and $21,000 for the first six months of 2004 and 2003, respectively. As a percentage of outstanding loans, the allowance for possible loan losses was 1.7% at both June 30, 2004 and December 31, 2003. 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 six months of 2004 noninterest income decreased $26,000 or 7.8% compared to the same period of 2003. Other noninterest income decreased by $19,000 or 26.8% compared to the same period of 2003. Most of this decrease is the result of a decrease in income earned from mortgage applications for the first six months of 2004.

There were no securities gains in the six month periods ended June 30, 2004 and 2003.

     NONINTEREST EXPENSE. For the first six months of 2004, noninterest expense increased $109,000 or 7.2% compared to the same period in 2003.

Salaries and employee benefits, the largest component of noninterest expense, increased by $31,000 or 4.0% for the first six months of 2004 as compared to the same period in 2003. This increase was attributed mostly to increases in salaries and adjustments to accruals for deferred compensation.

Net occupancy expense also increased by $24,000 or 8.2% for the first six months of 2004 as compared to the same period in 2003. This increase resulted mostly from building renovations made in 2003 and depreciation on new equipment purchased.

Other noninterest expense increased by $54,000 or 11.59% for the first six months of 2004 as compared to the same period in 2003. Most of the increase was attributed to professional fees.

     INCOME TAXES. The Company recorded provisions for income taxes of $96,000 for the six month period ended June 30, 2004 as compared to $146,000 for the same period of 2003.

FINANCIAL CONDITION

     LOANS. Loans were $40,283,000 at June 30, 2004; up by $312,000 or 0.8% from December 31, 2003.

TABLE I — COMPOSITION OF LOAN PORTFOLIO
(In thousands)

     SECURITIES HELD TO MATURITY. There were no securities held to maturity at June 30, 2004; which is down by $1,600,000 or 100.0% from December 31, 2003.

     SECURITIES AVAILABLE FOR SALE. Securities available for sale were $42,062,000 at June 30, 2004; which is down by $545,000 or 1.3% from December 31, 2003.

     COMPREHENSIVE INCOME. Total comprehensive income (loss) for the quarters ended June 30, 2004 and 2003 was ($790,000) and $328,000, respectively.

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 June 30, 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 June 30, 2004 total deposits have decreased by $ 2,716,000 or 3.2% from December 31, 2003. Noninterest-bearing deposits increased by $ 984,000 or 3.3% from December 31, 2003 to June 30, 2004. Interest-bearing deposits decreased by $ 3,700,000 or 6.6% from December 31, 2003 to June 30, 2004.

     CAPITAL. Shareholders’ equity totaled $ 13,891,000 at June 30, 2004, compared to $ 14,069,000 at December 31, 2003. The decrease is primarily the result of an unrealized reduction in the market value of securities available for sale which was offset by net income during the current period. 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 nonaudit services by the Company’s Independent Auditors pursuant to 18 U.S.C. Section 1350
	32.4		Disclosures on controls pursuant to 18 U.S.C. Section 1350 by the Company’s Principal Executive Officer
	32.5		Disclosures on controls pursuant to 18 U.S.C. Section 1350 by the Company’s Principal Financial Officer

     (b) Repots 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