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

American Community Bancorp Reports 105 Percent Increase in Second Quarter Net Income

Evansville, IN, July 26, 2005 - American Community Bancorp, Inc. (the "Company") (OTCBB: ACBP), the holding company for Bank of Evansville, today reported consolidated net income of $329,335 for the second quarter of 2005, reflecting a 105.2% increase over the same quarter in 2004. The consolidated net income for the second quarter of 2005 includes state and federal income tax expense of $163,300. The second quarter of 2005 is the first quarter in which income tax expense was incurred by the Company. The Company's taxable income in prior periods was offset by the net operating loss carryover from its start-up operations. On a pre-tax basis, income for the second quarter was $492,635 in 2005 compared with $160,472 in 2004, an increase of 207.0%. Diluted earnings per share for the second quarter of 2005 were $0.20 per share, doubling the $0.10 per share earned in the second quarter last year.

For the first six months of 2005, consolidated net income was $844,661, up $563,842 or 200.7% from the same period in 2004. Pre-tax income for the first six months of 2005 increased $727,142 or 258.9% compared to the first six months of 2004. Diluted earnings per share for the first six months of 2005 was $0.51 an increase of 183.3% over the $0.18 earned in the same period in 2004.

Total assets at June 30, 2005 were $192,774,594 compared to $147,489,320 at the same date a year ago, an increase of $45,285,274 or 30.7%. Total loans grew $49,628,772 or 42.8% and reached $165,627,701 compared to the $115,998,929 reported at June 30, 2004. Total deposits at June 30, 2005 were $171,595,235 reflecting an increase of $42,362,743 or 32.8% over the corresponding total a year ago. The Company remains "well capitalized" with a Tier I capital ratio of 11.1% at June 30, 2005.

Michael S. Sutton, President and CEO commented, "We continue to grow loans and net income at a robust pace. Although we recorded income tax expense for the first time in the second quarter of 2005, our net income for the second quarter of 2005 was more than doubled the net income for the second quarter of 2004 which had no income tax expense." Sutton continued, "Our loan growth remains solid with loans increasing 20.4% since the end of 2004. The balance sheet continues to be asset sensitive as 71.4% of our loans are variable rate and, as a result, we are well positioned to benefit from future rate increases by the Federal Reserve."

Total revenues, consisting of net interest income and non interest income, were $1,910,287 for the second quarter of 2005, $610,788 or 47.0% higher than the same period last year. Net interest income increased $525,041 for the second quarter of 2005, when compared to the same quarter of 2004 principally due to strong loan growth. The net interest margin increased from 3.31% in 2004 to 3.68% in 2005 as a result of the Company's asset sensitive balance sheet. Non interest expense for the second quarter of 2005 was $1,157,752, compared to $1,019,848 for the same period last year. The efficiency ratio for the second quarter was 60.6% and 78.5%, for 2005 and 2004, respectively. The improvement in the efficiency ratio is the result of growth of revenues exceeding the growth of expenses.

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

Total revenues for the first six months of 2005 were $3,733,183, increasing $1,271,557 or 51.7% compared to the same period in the prior year. Net interest income for the first six months of 2005, driven by strong loan growth, was $3,127,261, $1,033,257 or 49.3% higher than the $2,094,004 reported for the first six months of 2004. The net interest margin for the six months ended June 30, 2005 was 3.74%, 47 basis points higher than the net interest margin of 3.27% for the same period of 2004. The efficiency ratio for the six months ended June 30, 2005 of 63% compares favorably to the efficiency ratio of 78% for the first six months of 2004.

The provision for loan losses was $259,900 for the second quarter of 2005 and $119,179 for the second quarter of 2004. The provision for loan losses for the six months ended June 30, 2005 was $385,100 compared to $259,179 for the same period a year ago. The increase in the provision for loan losses in the second quarter and first six months of 2005 over the prior year are the result of the strong loan growth the Company experienced to date in 2005. The ratio of the allowance for loan losses to total loans was 1.51% and 1.50% at June 30, 2005 and 2004, respectively.

Mr. Sutton said, "Asset quality remains strong and is of primary importance to our Company. At June 30, 2005 loans on non-accrual were 0.11% of total loans and other than non-accrual loans, there were no loans 30 days past due."

Mr. Sutton concluded, "The excellent financial results for the first six months of 2005 reflect favorably on the efforts and dedication of our employees and directors. We continue to focus on high quality asset growth and improving profitability. We remain optimistic for the prospects of continued success in the second half of 2005.

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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