American Community Bancorp, Inc. Announces Record 2004 Results and Plans to Terminate its SEC Reporting Obligation

Net Income For Full-Year 2004 Increases 171% Over Prior Year Fourth Quarter Net Income Rose 522% Compared to 2003 Assets Grow 29% to $166 Million At 2004 Year-End Intends to Terminate SEC Reporting Obligation

Evansville, IN, February 22, 2005 - American Community Bancorp, Inc. (OTCBB: ACBP), the holding company for Bank of Evansville, today reported consolidated net income for the year ended December 31, 2004, of $818,423, an increase of $516,729 above the $301,694 reported for 2003. Diluted earnings per share were $0.52 for 2004, reflecting an increase of $0.30 per share or 136.4 percent, compared to $0.22 per share earned for 2003.

The consolidated net income was $355,643 for the fourth quarter of 2004, compared with $57,199 for the same quarter in 2003, an increase of 521.7 percent. Diluted earnings per share for the fourth quarter of 2004 were $0.22 per share, an $0.18 increase over the $0.04 reported for the prior-year fourth quarter.

Total assets at December 31, 2004, were $165,634,102, increasing $36,681,349, or 28.5 percent, from last year. Loans rose $38,688,097, or 39.1 percent, during 2004 and totaled $137,587,122 at year-end. The growth in assets and loans was primarily funded by a $34,240,397, or 29.6 percent, increase in deposits during the same period.

Michael S. Sutton, President and Chief Executive Officer, commented, "We are pleased to report the strong growth in net income and assets we achieved in 2004. Our performance continues to be driven by commercial loan growth in our target markets, small and mid-sized businesses in the Evansville area." Sutton went on to say, "Loans with a variable rate represent 75.9 percent of our loan portfolio which makes us well positioned in a rising rate environment."

Total revenues, consisting of net interest income and non-interest income, for the year ended December 31, 2004, were $5,540,747, an increase of $1,871,048, or 51.0 percent, over the $3,669,699 reported in the prior year. Net interest income for 2004 was $4,697,681 which is $1,653,670, or 54.3 percent, above the $3,044,011 reported for 2003. The increase in net interest income in 2004 over the prior year is attributable to an increase in average interest-earning assets of 36.3 percent and an increase in the net interest margin of 40 basis points to 3.4 percent in 2004 from the 2003 level of 3.0 percent. Non-interest income for 2004 was $843,066, compared to $625,688 in 2003, reflecting an increase of $217,378, or 34.7 percent. Non-interest expense for 2004 was $4,091,645, an increase of $1,075,140, or 35.6 percent, over the $3,016,505 reported for 2003. The increase in the level of operating expenses is a direct result of the infrastructure growth necessary to support the growth of our balance sheet and earnings. The efficiency ratio for 2004 was 73.9 percent, an improvement of 8.3 percent over the efficiency ratio of 82.2 for the year 2003.

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

Total revenues increased $693,844, or 70.8 percent for the fourth quarter of 2004, as compared to the same period last year. Net interest income increased by $548,015 for the fourth quarter of 2004, when compared to the same quarter of 2003, due to a 32.5 percent increase in average interest earning assets and an increase in the net interest margin from 2.9 percent for the fourth quarter of 2003 to 3.6 percent for the fourth quarter of 2004. Non-interest expense for the fourth quarter of 2004 was $1,153,713, as compared to $777,812 for the same period last year. Although the dollar amount of non-interest expense for the fourth quarter of 2004 exceeded that of the same period in 2003, the efficiency ratio improved to 68.9 percent for the fourth quarter of 2004, compared to 79.4 percent in the same quarter of the prior-year as the growth of revenue exceeded that of operating expense.

The provision for loan losses was $164,500 for the fourth quarter of 2004 and $145,000 for the same period of 2003. The full-year provision for loan losses was $630,679 and $351,500 for the years ended December 31, 2004, and 2003, respectively. The ratio of the allowance for loan losses to total loans was 1.5 percent at December 31, 2004 and 2003.

Mr. Sutton commented, "Asset quality remains strong as evidenced by our low level of charge-offs and non-performing assets. We have experienced loan charge-offs of only $14,000 since opening for business in July 2001, and as of December 31, 2004, the Bank had no non-performing loans. These statistics are reflective of the high level of expertise of our lending and credit administration personnel.

The Company is also announcing today its intent to file a Form 15 with the Securities and Exchange Commission (the "Commission") to terminate its reporting obligation under the Securities Exchange Act of 1934 (the "Act"), as amended. The Company plans to file the Form 15 with the Commission on February 25, 2005.

In keeping with our constant goal to increase shareholder value, the Company is taking this action to reduce the costs associated with being a "reporting company" under the Act. Management estimates the cost savings resulting from elimination of the reporting requirements under the Act would be approximately $200,000 in 2005 and in excess of $160,000 in subsequent years. Additionally, the reduced reporting burden will allow the Company's management to devote more attention and effort to the Company's operations and financial objectives. The Company's stock will continue to be traded, as previously, on the OTCBB, and the Company intends to continue to hold annual meetings and provide financial information to its shareholders through periodic mailings and through the Investor Relations portion of its web site.

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 made pursuant to 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. A partial list of these risk factors and uncertainties is contained in the Bank's Registration Statement on Form SB2 and the Bank's Annual Report on Form 10K-SB for the year ended December 31, 2003, which are on file with the Office of the Comptroller of the Currency.

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