Second Quarter Pre Tax Income Increases 25 Percent Loans Increase 17 Percent Over Prior Year

Evansville, IN, July 25, 2006 - American Community Bancorp, Inc. (the "Company") (OTCBB: ACBP), the holding company for Bank of Evansville, today reported consolidated net income for the second quarter of 2006 of $363,871, an increase of 10.5 percent over the same quarter in 2005. Income tax expense for the first quarter of 2005 was reduced due to carryover of tax losses from the Company's start up operations while income tax expense for the second quarter of 2006 was recorded at the full statutory rate. Pre tax income for the second quarter of 2006 was $613,971, an increase of $121,336 or 24.6 percent over the same period in 2005. Diluted earnings per share, adjusted for the 5 percent stock dividend declared in April 2006, were $0.20 and $0.19 for the second quarter of 2006 and 2005, respectively.

For the first six months of 2006, consolidated net income was $808,037 compared to $844,661 for the first six months of 2005. Income tax expense for the six months ended June 30, 2006 was $555,800 compared to $163,300 in the same period of the prior year. Income tax expense for the first six months of 2005 was reduced by approximately $240,000 due to the carryover of tax losses from start up operations which were fully utilized in 2005 due to the Company's profitable growth. Pre tax income for the first six months of 2006 increased $355,876 or 35.3 percent compared to the first six months of 2005. Diluted earnings per share, adjusted for the 5 percent stock dividend declared in April 2006, for the first six months of 2006 were $0.44 compared to $0.48 for the same period in 2005. Income tax expense for the first six months of 2006 was $0.30 per diluted share compared to $0.09 for the first six months of 2005.

Total assets at June 30, 2006 were $227,913,978 compared to $192,774,594 at the same date a year ago, an increase of $35,139,384 or 18.2 percent. Loans grew $28,798,096 or 17.4 percent and reached $194,425,797 at June 30, 2006 compared to $165,627,701 reported at June 30, 2005. Total deposits at June 30, 2006 were $194,461,569, reflecting an increase of $22,866,334 or 13.3 percent over the corresponding total a year ago. The Company remains "well capitalized" with a Tier I capital ratio of 10.6 percent at June 30, 2006.

Michael S. Sutton, President and Chief Executive Officer commented, "We are pleased with the strong loan growth and increases in revenues and net income we experienced in the second quarter. We believe our success is reflective of the high caliber of service provided to our clients by committed banking professionals. While income taxes had a negative impact on our year to date results, we are pleased with the 35.3 percent increase in our year to date pre tax income over the prior year."

Total revenues, consisting of net interest income and non interest income, were $2,159,160 for the second quarter of 2006, $248,873 or 13.0 percent higher than the same period last year. Net interest income was $1,799,801 for the second quarter of 2006, increasing $188,615 or 11.7 percent over the same quarter of 2005 primarily due to strong loan growth. Non interest income of $359,359 for the second quarter of 2006 grew $60,258 or 20.1 percent compared to the same period in 2005. Non interest expense for the second quarter of 2006 was $1,449,743, compared to $1,157,752 for the second quarter of 2005.

Total revenues for the first six months of 2006 were $4,284,407, increasing $551,224 or 14.8 percent compared to the same period in the prior year. Net interest income for the first six months of 2006, was $3,613,418, $486,157 or 15.5 percent higher than the $3,127,261 reported for the first six months of 2005. The growth of net interest income is attributable to the growth of the loan portfolio. Non interest income for the first six months of 2006 increased $65,067 or 10.7 percent. Non interest expense for the first six months of 2006 was $2,688,152 compared to $2,340,122 for the same period in 2005.

Mr. Sutton said, "Asset quality continues to be our highest priority. We are committed to maintain our credit administration infrastructure at a level commensurate with the size of our loan portfolio and rate of portfolio growth. At June 30, 2006 there were no loans on non accrual and no loans 30 days past due."

Mr. Sutton concluded, "We continue to focus on quality loan growth, generation of core deposits, and improving profitability while maintaining the level of responsiveness which distinguishes us from our competition. We remain optimistic for the prospects of continued successes in the second half of 2006."

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.

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