BAINBRIDGE ISLAND, WA – DECEMBER 16, 2009 - American Marine Bank (AMB) executed a stipulation to a Consent Order with its regulators to continue taking actions to strengthen its financial condition. Under this Consent Order, American Marine Bank agreed to take steps toward improving management and lending policies.

“American Marine Bank has been working closely with banking regulators on a plan to secure the banks overall health during these challenging times,” stated Renzo Lucioni, AMB’s Chief Financial Officer and interim President. “The bank has already taken steps to replenish capital, update lending practices, improve asset quality and ensure liquidity as a result of our June regulatory exam.”

In summary, the agreement stipulates that the bank will retain qualified executive management, increase Board participation, increase and maintain capital levels, fully fund the Allowance for Loan and Lease Losses (ALLL) and implement policies for determining adequate ALLL, eliminate all assets classified as loss, reduce substandard assets, improve lending and collections policies, and improve liquidity and funds management policies. It’s expected that the FDIC will make the Order public at the end of December.

Consistent with many banks in the Northwest, AMB has been impacted by the severe downturn in the economy and the housing markets resulting in defaults in real estate and participation loans. Consequently, the bank has dramatically increased the reserve for potential loan losses to $18.9 million as of the end of the first quarter, severely impacting the bank’s earnings and capital levels. This, combined with an increase in FDIC insurance premiums and the costs associated with non-performing assets, has put the bank in a loss position for most of 2009. At the end of the 3rd quarter net loss was at $19,034,000, an $842,000 improvement from the first quarter of 2009, with no increase in the provision for loan losses in the third quarter. The bank continues to work to improve its position with non-performing loans by either restructuring loans with borrowers or liquidating assets. The bank has taken steps to analyze the entire loan portfolio to identify any further potential loss and has acquired updated collateral and property appraisals. Risks have been identified and mitigation steps are in process. Year-end financials will likely include another increase to the provision to cover potential losses, further eroding capital.

By example, the bank recently took ownership of the Whitehorse Golf property in Kingston after a Trustee sale on December 11th brought in no offers. The bank will now hire a specialized broker to market the property, which includes the golf course and 159 undeveloped lots.

In August of 2009, the bank hired Keefe, Bruyette & Woods, an investment banking firm, to seek out capital investors and/or merger partners as means to resolve capital issues. While there have been several inquires and some proposals, the work with KBW has yet to bring in capital. The bank would consider any and all investment opportunities including local investors in the community.

“It’s important to remember that deposit accounts are unaffected by the Order,” stated Lucioni. “Your deposits are safe as long as they fall within the FDIC guidelines and since the inception of the FDIC in 1933, no one has ever lost a penny of insured deposits. We’d like to assure our deposit customers that our commitment to service has not changed. If you are happy with the service and the people you work with at our branches, our challenges should not affect you.” The FDIC insurance amount of $250,000 per depositor is in effect through December 31, 2013. In addition, non-interest bearing transaction accounts and qualified interest-bearing accounts, those that cannot earn more than 0.50% in interest, are fully guaranteed by the FDIC for an unlimited amount of coverage under the FDIC's Temporary Liquidity Guarantee Program (TLGP) through June 30, 2010.

Established in 1948, American Marine Bank provides personalized banking services through their home loan center and eleven banking locations throughout Clallam, Jefferson, Kitsap and Mason counties as well as downtown Seattle. American Marine Bank is a wholly owned subsidiary of AMB Financial Services Corporation and the Home Office is located at 249 Winslow Way East, Bainbridge Island, WA. For more information call Judy Thorpe at 206.855.8563.

BAINBRIDGE ISLAND, WA – July 16, 2009 – AMB Financial Services Corporation, on behalf of its subsidiary American Marine Bank, announced today that President and CEO, Rex Townsend is retiring. Mr. Townsend has been with the bank since 1990, serving as President for 10 years. The bank will evaluate the need for specific experience in capital strategies, credit management and senior bank leadership.

“We want to thank Rex for his numerous contributions to American Marine Bank throughout his career with us,” stated Alice Tawresey, Board Chair. “The change does present a unique opportunity to revitalize the bank as we work our way through this difficult economic period in history. We have solid liquidity and market share, especially on Bainbridge Island and we look to focus our efforts towards improved capital, deposit gathering and working out non-performing loans.”

Established in 1948, American Marine Bank provides personalized banking services through their home loan center and eleven banking locations throughout Clallam, Jefferson, Kitsap and Mason counties as well as downtown Seattle. American Marine Bank is a wholly owned subsidiary of AMB Financial Services Corporation and the Home Office is located at 249 Winslow Way East, Bainbridge Island, WA. For more information call Judy Thorpe at 206.855.8563.

BAINBRIDGE ISLAND, WA – JUNE 10, 2009 – American Marine Bank (AMB) has awarded six new scholarships to graduating seniors in local school districts through the AMB Scholarship Program. AMB’s program includes a $500 award for each year of the selected student’s 4-year term. School districts include Bainbridge Island, Central Kitsap, North Kitsap, North Mason, Port Angeles, and Sequim. For 2009 contributions, the bank plans to award new scholarships totaling $3,000, and previous year’s scholarship commitments totaling over $13,500.

Students who apply to the AMB Scholarship Program are selected based on several criteria including a minimum 3.5 grade point average, extra curricular activities and work experience. Interest in the study of Business or Finance is preferable, but not mandatory.

Established in 1948, American Marine Bank provides personalized banking services through their home loan center and eleven banking locations throughout Clallam, Jefferson, Kitsap and Mason counties as well as downtown Seattle. American Marine Bank is a wholly owned subsidiary of AMB Financial Services Corporation and the Home Office is located at 249 Winslow Way East, Bainbridge Island, WA. For more information call Judy Thorpe at 206.855.8563.

BAINBRIDGE ISLAND, WA – MARCH 18, 2009 – American Marine Bank (AMB) is pleased to announce that Cecilia Kakela, Lending Credit Assistant, has been awarded the 2008 Employee of the Year award. Cecilia was nominated for her dedication in providing exceptional credit reporting to exceed regulatory requirements during a difficult economic environment. Her commitment to perfecting the procedure, her willingness to spend numerous hours on evenings and weekends and her ability to maintain a positive attitude are appreciated and rewarded by AMB.

Cecilia’s notable banking career began in 1985 with Great Northwest Bank, where she held various positions as Teller, Administrative Assistant and Legal Secretary. She then enjoyed an 11 year career with Wells Fargo holding positions such as District Secretary, Financial Services Representative and finally as Service Manager for the Bainbridge Island branch. More recently, Cecilia worked on the loan processing side of banking as Office Manager for Whitson & Winningham and Loan Processor for CFA Northwest Mortgage.

Established in 1948, American Marine Bank provides personalized banking services through their home loan center and eleven banking locations throughout Clallam, Jefferson, Kitsap and Mason counties as well as downtown Seattle. American Marine Bank is a wholly owned subsidiary of AMB Financial Services Corporation and the Home Office is located at 249 Winslow Way East, Bainbridge Island, WA. For more information call Judy Thorpe at 206.855.8563.

BAINBRIDGE ISLAND, WA – FEBRUARY 10, 2009 – American Marine Bank (AMB) is pleased to announce that Kyrsten Wooster, Human Resources Officer, recently earned certification as a Professional in Human Resources (PHR) and Carolyn Nall, SVP, Human Resources, recently earned certification as a Senior Professional in Human Resources (SPHR). To become certified, an applicant must pass a comprehensive examination and demonstrate a strong background of professional human resource experience. The certifications, awarded by the HR Certification Institute, signify that the individual possesses the theoretical knowledge and practical experience in human resource management and a mastery of the body of knowledge in the field. Certification clearly demonstrates a commitment to personal excellence and to the human resource profession. The HR Certification Institute is an affiliate of the Society for Human Resource Management, the world's largest organization dedicated exclusively to the human resource profession.

Kyrsten has worked with American Marine Bank for over 7 years with 10 years of banking industry experience. Kyrsten has a Bachelors degree in Business Administration, is a member of the Society of Human Resource Management and a member of the West Sound Human Resource Management Association.

Carolyn has over 21 years of banking experience with 11 years dedicated to Human Resources. Carolyn is a graduate of the School of Banking in Human Resources Management and the American Bankers Association School of Human Resources Management. She is also a member of the Society of Human Resource Management, the Northwest Human Resources Management Association, Washington Bankers Association Human Resources Committee and serves as Personnel Committee Chairman for Helpline House.

Established in 1948, American Marine Bank provides personalized banking services through their Home Loan Center and eleven banking locations throughout Clallam, Jefferson, Kitsap and Mason counties as well as downtown Seattle. American Marine Bank is a wholly owned subsidiary of AMB Financial Services Corporation and the Home Office is located at 249 Winslow Way East, Bainbridge Island, WA. For more information call Judy Thorpe at 206.855.8563.

SILVERDALE, WA – FEBRUARY 09, 2009 – American Marine Bank’s Silverdale office has been awarded the Central Kitsap PTSA Council’s Community Partnership Award. The honor recognizes individuals or organizations as sterling examples of volunteerism in the Central Kitsap Community. Organizations awarded this title are honored for their positive contributions, especially those that have benefited children in the community. The award will be presented at an annual Founder’s Day Banquet on March 6th at the Trident Ballroom.

“At American Marine Bank, it’s part of our Statement of Values to be actively involved in our communities,” noted Mechelle Hoerer, Silverdale Manager. “Volunteering our time is one of the best ways we can give back.”

American Marine Bank’s Silverdale office has been particularly active in the schools with such volunteerism as staffing the WASL breakfast and proctoring for the PSAT exam at Central Kitsap High School, staffing the Book Fairs for both Clear Creek Elementary and Central Kitsap Junior High, providing baked goods and concession help for the Klahowya and Central Kitsap High School Band Boosters, serving on the review board for Senior Culminating Projects for Olympic High and assisting with track and field events for Fairview Junior High.

Established in 1948, American Marine Bank provides personalized banking services through their Home Loan Center and eleven banking locations throughout Clallam, Jefferson, Kitsap and Mason counties as well as downtown Seattle. American Marine Bank is a wholly owned subsidiary of AMB Financial Services Corporation and the Home Office is located at 249 Winslow Way East, Bainbridge Island, WA. For more information call Judy Thorpe at 206.855.8563.

BAINBRIDGE ISLAND, WA – JANUARY 29, 2009 – American Marine Bank (AMB) is pleased to award Lorry Gilbreath with the 2008 Residential Lending Top Producer award. Despite current economic challenges, Lorry ranked top in residential loan production among her peers at the bank, with over $16 million in closed loans. The bank’s traditional lending methods have ensured that the loans provided truly fit the customer’s needs.

Lorry started with American Marine Bank in July of 2007 and has been successful in building a strong customer base on Bainbridge Island. She has over 14 years of banking and mortgage lending experience. Along with her contribution to the bank, Lorry is active in her community through her work on the Board of the Boys & Girls Club.

Established in 1948, American Marine Bank provides personalized banking services through their Home Loan Center and eleven banking locations throughout Clallam, Jefferson, Kitsap and Mason counties as well as downtown Seattle. American Marine Bank is a wholly owned subsidiary of AMB Financial Services Corporation and the Home Office is located at 249 Winslow Way East, Bainbridge Island, WA. For more information call Judy Thorpe at 206.855.8563.

PORT TOWNSEND, WA – JANUARY 21, 2009 – American Marine Bank (AMB) is pleased to promote Imri-Lael McKnight as Port Townsend Branch Manager. Imri-Lael started with AMB as a teller in the Home Office on Bainbridge Island. She was then promoted to an Operations role in the Port Townsend Safeway branch. Imri-Lael came to the bank with over five years experience in banking including collections management, new accounts and accounting. Imri-Lael resides in Port Hadlock and looks forward to becoming more active in the Port Townsend community with her new role.

Established in 1948, American Marine Bank provides personalized banking services through their Home Loan Center and eleven banking locations throughout Clallam, Jefferson, Kitsap and Mason counties as well as downtown Seattle. American Marine Bank is a wholly owned subsidiary of AMB Financial Services Corporation and the Home Office is located at 249 Winslow Way East, Bainbridge Island, WA. For more information call Judy Thorpe at 206.855.8563.

BAINBRIDGE ISLAND, WA – JANUARY 12, 2009 – American Marine Bank (AMB) is pleased to promote Kelly Sumpter as Bainbridge Island High School Road Branch Manager. Kelly is a long-term employee with AMB, serving almost 10 years at the bank in various locations and capacities such as teller work, wire and foreign currency, customer service and most recently as Operations Supervisor. Kelly replaces Kevin Mooney who has moved to a new position with AMB as Customer Service Center Manager. Kelly has been an active volunteer with the annual Bainbridge Island Rotary Auction for the past five years.

Established in 1948, American Marine Bank provides personalized banking services through their Home Loan Center and eleven banking locations throughout Clallam, Jefferson, Kitsap and Mason counties as well as downtown Seattle. American Marine Bank is a wholly owned subsidiary of AMB Financial Services Corporation and the Home Office is located at 249 Winslow Way East, Bainbridge Island, WA. For more information call Judy Thorpe at 206.855.8563.

BELFAIR, WA – JANUARY 9, 2009 – American Marine Bank (AMB) is pleased to promote Heather Hodges as Belfair Branch Manager. Heather has been with American Marine Bank since the in-store location opened in Belfair in early 2005. Starting out as a Sales Associate working on new accounts and teller transactions, Heather was promoted to lead Sales Associate incorporating operational duties and taking on a supervisory role. Heather replaces Gary Podesta who has moved on to work in AMB’s Central Operations department as Community Banking Operations Manager.

Heather is active in the Belfair community in which she lives. She has volunteered with the North Mason Boys & Girls Club for the past three years and is currently on the North Mason Boys & Girls Club Advisory Board. Heather also coaches her son’s Pee-Wee basketball team.

Established in 1948, American Marine Bank provides personalized banking services through their Home Loan Center and eleven banking locations throughout Clallam, Jefferson, Kitsap and Mason counties as well as downtown Seattle. American Marine Bank is a wholly owned subsidiary of AMB Financial Services Corporation and the Home Office is located at 249 Winslow Way East, Bainbridge Island, WA. For more information call Judy Thorpe at (206) 855-8563.