American Community Bancorp, Inc. Reports Record First Quarter Results for 2005

First Quarter Net Income of $515 Thousand Up 328% Over Prior Year
Loans Grow $9.5 Million Over December 2004

Evansville, IN, April 26, 2005 - American Community Bancorp, Inc. (OTCBB: ACBP) (the "Company"), the holding company for Bank of Evansville, announced today the first quarter results for 2005. The Company had consolidated net income of $515,326 for the first quarter of 2005, compared to $120,347 for the first quarter of 2004, an increase of 328.2 percent. Diluted earnings per share were $0.31 for the first quarter of 2005, compared to $0.08 for the same period in 2004. The increase reflects strong growth in net interest income fueled by loan growth of $9,501,992 during the quarter.

Michael S. Sutton, President and Chief Executive Officer, commented, "We are pleased with the operating results for the first quarter and with the strong commercial loan growth we experienced in the first three months of 2005. Loans with a variable rate represent 75.5 percent of our loan portfolio and, as a result, the rising rate environment has favorably impacted our net interest margin. Although the residential mortgage refinancing market has declined, we had a very strong level of mortgage originations in the first quarter. Fees earned from the sale of mortgages in the secondary market for the first quarter of 2005 were up 84.5 percent over the prior year."

Total revenues, comprised of net interest income and non-interest income, were $1,822,899 for the first quarter of 2005, increasing $660,772 or 56.9 percent over the same period in 2004. Net interest income of $1,516,078 for the first quarter of 2005 increased 50.4 percent when compared to the prior year. The increase in net interest income is the result of growth in earning assets and an increase in the net interest margin of 58 basis points from 3.22 percent for the first quarter of 2004 to 3.80 percent for the first quarter of 2005.

Non-interest income for the first quarter of 2005 was $306,821, an increase of 98.9 percent, compared to $154,268 earned in the first quarter of 2004. The growth of non-interest income was primarily attributable to volume-related increases in gains on sale of loans in the secondary market of $65,415 and merchant processing fees of $59,364.

Non-interest expense for the first quarter of 2005 was $1,182,373, increasing by $280,593, compared to $901,780 for the first quarter of 2004. Salaries and benefits increased by $126,965 or 24.3 percent due to our investment in personnel to support the continued growth of the Company. The growth in other categories of non-interest expense was, likewise, necessary to support the growth of the Company's balance sheet and earnings. Although non-interest expense increased in the first quarter of 2005 compared to the prior year, the efficiency ratio improved to 64.9 percent for the first quarter of 2005 from 77.6 percent in the first quarter a year ago.

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

The provision for loan losses for the first quarter was $125,200 and $140,000 for 2005 and 2004, respectively. There were no loans charged off during the first quarter of 2005 or 2004. The ratio of the allowance for loan losses to total loans was 1.5 percent at the end of the first quarter of 2005 and 2004.

Mr. Sutton stated, "Asset quality continues to be our highest priority. By focusing on a very strong credit administration process, we have managed the growth in our loan portfolio without compromising asset quality. At March 31, 2005, we had no non-performing loans and have experienced only $13,000 in charge-offs since opening for business in July 2001."

Total assets at March 31, 2005, were $179,140,698, an increase of $39,669,191 or 28.4 percent from $139,471,507 at March 31, 2004. Loans increased by $36,569,335 or 33.1 percent, reaching $147,089,114 at March 31, 2005, compared to $110,519,779 at March 31, 2004. The funding for the growth in loans was provided primarily by an increase in total deposits of $37,847,679 or 30.1 percent during the same time period.

Mr. Sutton concluded, "Our strong first quarter results provide a basis for optimism for the remainder of 2005. We continue to experience strong demand for our products and services. Our people, with their high service quality standard, are at the heart of our success. We look for 2005 to be another great year for American Community Bancorp."

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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