American Community Bancorp, Inc. Announces Fourth Quarter and Full Year 2005 Results

Net Income For Full Year 2005 Increases 106% Over Prior Year
Assets Increase 34% to $222 Million At 2005 Year-End

Evansville, IN, February 1, 2006 - American Community Bancorp, Inc. ("the Company") (OTCBB: ACBP), the holding company for Bank of Evansville,, today reported net income for the fiscal year ended December 31, 2005, of $1,688,925, an increase of 106.4 percent from the $818,423 reported for the fiscal year ended December 31, 2004. Diluted earnings per share were $1.00 for 2005, compared to $0.52 for 2004, an increase of $0.48. The Company's 2005 net income includes federal and state income tax expense of $744,300, or $0.44 per diluted share. The Company recorded no federal or state income tax expense in 2004 due to utilization of net operating loss carryovers from losses incurred during its start-up operations. Income before income taxes for 2005 of $2,433,225 increased $1,614,802, or 197.3 percent, over the $818,423 earned in 2004.

For the first nine months of 2005, consolidated net income was $1,321,218, up $858,439 or 185.5 percent from the first nine months of 2004. The Company recorded state and federal income tax expense of $482,900 for the nine months ending September 30, 2005, while none were reported for the same period in the prior year for the reasons described in the previous paragraph. Diluted earnings per share for the first nine months of 2005 were $0.79, increasing $0.49 or 163.3 percent over the same period in 2004.

For the quarter ended December 31, 2005, net income was $367,707 compared to $355,643 in the fourth quarter of 2004, an increase of 3.4 percent. The fourth quarter 2005 results include federal and state income tax expense of $261,400, or $0.15 per diluted share, while no income tax expense was recorded in 2004 due to use of net operating loss carryovers. On a pre-tax basis, income for the fourth quarter was $629,107, increasing $273,464 or 76.9 percent, compared to the same period of 2004.

Total assets at December 31, 2005, were $222,074,893, reflecting growth of $56,440,791, or 34.1 percent, over the $165,634,102 reported a year ago. Total loans grew by $40,881,423, or 29.7 percent, during 2005, reaching $178,468,545 at December 31, 2005. Deposits of $195,526,826 at December 31, 2005, increased $45,779,925, or 30.6 percent, from $149,746,901 at December 31, 2004. Non interest bearing deposits grew from 9.0 percent to 13.0 percent of total deposits during 2005 due to a focused effort to obtain business checking accounts and continued acceptance of our courier banking service.

Michael S. Sutton, President and Chief Executive Officer, commented, "We are very proud to report our 2005 performance. Significant growth in the loan portfolio and core deposits were key contributors to our record earnings. It is encouraging that our sales efforts in 2005 resulted in an increase of over $11 million in non interest bearing deposits. Mortgage banking and merchant processing fees were key components to our growth in non interest income."

Total revenues, consisting of net interest income and non interest income, were $7,859,751 for the fiscal year ending December 31, 2005, increasing $2,319,004, or 41.9 percent, over total revenues of $5,540,747 for 2004. Net interest income for 2005 increased $1,902,264 over the prior year, primarily due to the increase in average earning assets of $42,526,512. The net interest margin for 2005 was 3.64 percent, compared to 3.38 percent for 2004. The Company's non interest income for 2005 was $1,259,806, a $416,740, or 49.4 percent increase, over 2004. The increase in non interest income was primarily attributable to increased fees on residential real estate loans originated for sale in the secondary market and increased merchant processing fees.

4424 Vogel Road
Evansville, Indiana 47715
Phone: (812) 962-2265 Fax: (812) 962-1383

Non interest expense totaled $4,821,526 for 2005, increasing 17.8 percent over 2004. The growth in non interest expense is related to expanding the infrastructure to support the Company's asset growth during 2005. Although total non interest expense increased in 2005 compared to the prior year, the efficiency ratio for 2005 improved to 61.3 percent, compared to 73.8 percent in 2004.

Total revenues, consisting of net interest income and non interest income, were $2,095,538 for the fourth quarter of 2005, reflecting an increase of $421,682, or 25.2 percent, compared to the same period in 2004. Net interest income in the fourth quarter of 2005 was $1,780,355, increasing $381,052, or 27.2 percent, compared to the same quarter of 2004. The increase in net interest income in the fourth quarter of 2005, as compared with 2004, was primarily due to the higher level of average earning assets in 2005, which were $43,457,083 higher than in 2004.

Non interest expense for the fourth quarter of 2005 was $1,298,131, increasing 12.5 percent from $1,153,713 in the same period a year ago. The efficiency ratio for the fourth quarter of 2005 was 61.9 percent, compared to 68.9 percent in 2004. The decrease in the efficiency ratio is reflective of growth in revenues exceeding growth of non interest expense.

The full-year provision for loan losses for 2005 was $605,000, compared to $630,679 in 2004. The fourth quarter provision for loan losses was $168,300 and $164,500 in 2005 and 2004, respectively. The ratio of the allowance for loan losses to total loans was 1.52 percent at December 31, 2005, and 1.54 percent a year ago.

Mr. Sutton continued, "We were able to achieve solid commercial loan growth from businesses in the Evansville area while maintaining strong asset quality. Non performing loans at December 31, 2005, were $182,426, or 0.10 percent of loans and, except for non performing loans, we had no loans past due 30 days at year end. Our loan growth and credit quality statistics reflect positively on our underwriting processes and credit culture."

Mr. Sutton concluded, "We achieved significant growth in assets and revenues throughout 2005. Although we recorded income tax expense for the first time beginning in the second quarter of 2005, our net income for the year exceeded the 2004 results by over 100 percent. These results are a reflection on the efforts and competence of our banking professionals."

American Community Bancorp, Inc., through its wholly-owned subsidiary, Bank of Evansville, provides a full range of commercial and consumer banking services in the Evansville, Indiana, area.

This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Act of 1995. Such statements are based on management's current expectations and are subject to a number of risk factors and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements.

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AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED BALANCE SHEETS

	(Unaudited)
	December 31,	December 31,
	2005	2004
ASSETS
Cash and due from banks	$ 6,820,406	$ 3,412,850
Interest bearing balances with banks	-	2,406,076
Federal funds sold	19,119,000	2,412,000
Total cash and cash equivalents	25,939,406	8,230,926
Securities available for sale, at fair value	10,779,027	13,602,753
Nonmarketable equity securities	1,007,350	677,000

Loans, net of deferred fees	178,468,545	137,587,122
Allowance for loan losses	(2,721,000)	(2,116,000)
Net loans	175,747,545	135,471,122

Premises and equipment	5,519,786	5,602,767
Other assets	3,081,779	2,049,534
Total assets	$222,074,893	$165,634,102

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest bearing	$ 25,390,342	$ 13,427,677
NOW, MMDA and Savings	94,500,911	62,365,634
Time deposits	75,635,573	73,953,590
Total deposits	195,526,826	149,746,901
Federal funds purchased & other borrowed funds	-	500,000
Long term debt	8,248,000	-
Accrued expenses and other liabilities	1,633,499	441,468
Total liabilities	205,408,325	150,688,369

Shareholders' Equity
Common stock, no par value, 3,000,000 shares
authorized; issued and outstanding 1,598,667
and 1,582,417	15,707,937	15,536,687
Undivided profits (accumulated deficit)	1,145,045	(543,881)
Accumulated other comprehensive loss	(186,414)	(47,073)
Total shareholders' equity	16,666,568	14,945,733
Total liabilities and shareholders' equity	$222,074,893	$165,634,102

AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME

		Three months ended		Years ended
		December 31,		December 31,
		(Unaudited)	(Unaudited)	(Unaudited)
Interest income:		2005	2004	2005	2004
	Interest and fees on loans	$3,094,951	$1,924,167	$10,586,291	$6,306,310
	Securities	123,511	148,153	517,138	627,852
	Interest bearing balances with other banks	52	16,329	5,363	49,753
	Federal funds sold	110,281	7,448	269,228	25,362
	Total interest income	3,328,795	2,096,097	11,378,020	7,009,277

Interest expense:
	Deposits	1,424,223	683,423	4,499,929	2,287,412
	Federal funds purchased	-	2,970	855	5,431
	ACB Trust note payable	124,217	-	274,307	-
	FHLB advances	-	10,401	2,984	18,753
	Total interest expense	1,548,440	696,794	4,778,075	2,311,596
Net interest income		1,780,355	1,399,303	6,599,945	4,697,681
Provision for loan losses		168,300	164,500	605,000	630,679
Net interest income after provision
for loan losses		1,612,055	1,234,803	5,994,945	4,067,002

Non interest income:
	Service charges on deposit accounts	44,644	34,825	175,738	111,301
	Gain on sale of loans	80,899	106,806	508,758	387,766
	Gain on sale of securities	-	-	-	7,215
	Other	189,640	132,922	575,310	336,784
	Total non interest income	315,183	274,553	1,259,806	843,066

Non interest expense:
	Salaries and benefits	653,738	540,992	2,599,163	2,215,145
	Occupancy and equipment	127,543	128,882	528,839	441,282
	Marketing	22,197	29,835	84,045	96,345
	Data processing	82,022	69,487	299,900	251,282
	Supplies, printing and delivery expense	25,225	33,439	92,816	87,849
	Legal and professional	60,477	126,915	198,669	352,399
	Other	326,929	224,163	1,018,094	647,343
	Total non interest expense	1,298,131	1,153,713	4,821,526	4,091,645
Income before income taxes		629,107	355,643	2,433,225	818,423
Income taxes		261,400	-	744,300	-
Net income		$ 367,707	$ 355,643	$ 1,688,925	$ 818,423


Basic earnings per common share		$ 0.23	$ 0.22	$ 1.06	$ 0.54
Diluted earnings per common share		$ 0.21	$ 0.22	$ 1.00	$ 0.52
Average common shares outstanding		1,598,667	1,582,417	1,591,375	1,527,058
Average diluted shares outstanding		1,710,748	1,653,259	1,685,060	1,582,705

AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)

	2005	2005	2005	2005	2004	Years ended December 31
(dollars in thousand except per share data)	4th Qtr	3rd Qtr	2nd Qtr	1st Qtr	4th Qtr	2005	2004
EARNINGS
Net interest income	$ 1,780	$ 1,692	$ 1,611	$ 1,516	$ 1,399	$ 6,600	$ 4,698
Provision for loan losses	$ 168	$ 52	$ 260	$ 125	$ 164	$ 605	$ 631
Non interest income	$ 315	$ 339	$ 299	$ 307	$ 275	$ 1,260	$ 843
Non interest expense	$ 1,298	$ 1,183	$ 1,158	$ 1,182	$ 1,154	$ 4,822	$ 4,092
Income taxes	$ 261	$ 320	$ 163	$ -	$ -	$ 744	$ -
Net income	$ 368	$ 476	$ 329	$ 516	$ 356	$ 1,689	$ 818
Basic earnings per share	$ 0.23	$ 0.30	$ 0.21	$ 0.33	$ 0.22	$ 1.06	$ 0.54
Diluted earnings per share	$ 0.21	$ 0.28	$ 0.20	$ 0.31	$ 0.22	$ 1.00	$ 0.52
Average shares outstanding	1,598,667	1,597,162	1,587,256	1,582,417	1,582,417	1,591,375	1,527,058
Average diluted shares outstanding	1,710,748	1,697,305	1,678,257	1,653,930	1,653,259	1,685,060	1,582,705

PERFORMANCE RATIOS
Return on average assets	0.70%	0.94%	0.71%	1.23%	0.87%	0.88%	0.55%
Return on average common equity	8.83%	11.75%	8.47%	13.77%	9.53%	10.66%	5.92%
Net interest margin (fully tax-equivalent)	3.57%	3.52%	3.68%	3.80%	3.61%	3.64%	3.38%
Efficiency ratio	64.90%	58.26%	60.61%	64.86%	68.93%	61.34%	73.85%
Full-time equivalent employees	40	38	37	35	34	40	34

CAPITAL
Average equity to average assets	7.93%	8.04%	8.43%	8.90%	9.05%	8.30%	9.36%
Tier 1 leverage capital ratio	10.79%	10.99%	11.34%	9.09%	9.16%	10.79%	9.16%
Tier 1 risk-based capital ratio	12.35%	12.85%	12.66%	10.32%	10.85%	12.35%	10.85%
Total risk-based capital ratio	14.91%	15.57%	13.91%	11.58%	12.10%	14.91%	12.10%
Book value per share	$ 10.43	$ 10.22	$ 9.97	$ 9.68	$ 9.44	$ 10.43	$ 9.44
Cash dividend per share	-	-	-	-	-	-	-

ASSET QUALITY
Gross loan charge-offs	$ -	$ -	$ -	$ -	$ 1	$ -	$ 13
Net loan charge-offs	$ -	$ -	$ -	$ -	$ 1	$ -	$ 13
Net loan charge-offs to average loans	-	-	-	-	-	-	0.01%
Allowance for loan losses	$ 2,721	$ 2,553	$ 2,501	$ 2,241	$ 2,116	$ 2,721	$ 2,116
Allowance for losses to total loans	1.52%	1.53%	1.51%	1.52%	1.54%	1.52%	1.54%
Nonperforming loans	$ 182	$ 182	$ 182	$ 11	$ 70	$ 182	$ 70
Other real estate and repossessed assets	$ -	$ -	$ -	$ -	$ -	$ -	$ -
Nonperforming loans to total assets	0.08%	0.09%	0.09%	0.01%	0.04%	0.08%	0.04%

END OF PERIOD BALANCES
Loans	$ 178,469	$ 167,036	$ 165,628	$ 147,089	$ 137,587	$ 178,469	$ 137,587
Total earning assets	$ 209,683	$ 197,001	$ 183,349	$ 169,118	$ 156,757	$ 209,683	$ 156,757
Total assets	$ 222,075	$ 206,969	$ 192,775	$ 179,141	$ 165,634	$ 222,075	$ 165,634
Deposits	$ 195,527	$ 181,166	$ 171,595	$ 163,507	$ 149,747	$ 195,527	$ 149,747
Shareholders' equity	$ 16,667	$ 16,335	$ 15,895	$ 15,321	$ 14,946	$ 16,667	$ 14,946

AVERAGE BALANCES
Loans	$ 174,165	$ 166,464	$ 156,924	$ 143,359	$ 135,640	$ 160,230	$ 119,091
Total earning assets	$ 197,882	$ 190,786	$ 175,740	$ 161,879	$ 154,425	$ 181,559	$ 139,032
Total assets	$ 208,417	$ 200,197	$ 185,103	$ 170,595	$ 163,600	$ 191,064	$ 147,797
Deposits	$ 182,786	$ 176,189	$ 166,052	$ 154,370	$ 145,979	$ 169,836	$ 132,276
Shareholders' equity	$ 16,523	$ 16,095	$ 15,598	$ 15,181	$ 14,798	$ 15,850	$ 13,827