American Bank Inc. of Allentown, Pa., said Friday that it could have a “significant” after-tax gain of up to $1.82 million, or 30 cents a share, once PSB Bancorp Inc. is sold to Conestoga Bancorp.
The $533 million-asset American Bank said it owns 347,643 shares, or 6.7%, of PSB, at an average cost of $9.18 per share.
PSB, the parent company of the $562.4 million-asset First Penn Bank, announced its $87 million cash deal with Conestoga, of Chester Springs, Pa., on Thursday. First Penn Bank has 13 branches.
The deal is expected to close next quarter or in the first quarter of 2007.
