Bank of Evansville


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August 30, 2006
For Immediate Release

Contact: Michael S. Sutton Phone: (812) 962-2265

Bank of Evansville Announces Plans for North Side Banking Center

Evansville, IN, August 30, 2006 - Bank of Evansville (Bank) a wholly-owned subsidiary of American Community Bancorp, Inc. (OTCBB: ACBP),, announced plans to expand to Evansville's north side with a full-service banking center to be located on a 1.30 acre site at the northeast corner of US Highway 41 and Boonville-New Harmony Road in the Grant Hills Commercial Development.

The Bank plans to start construction of the new facility, pending regulatory approval, during the fourth quarter of 2006, with a targeted opening date during the third quarter of 2007. The facility, which will approximate 3,100 square feet, will include a full-service lobby area, three drive-through lanes, a drive-up ATM, as well as a drive-up night depository.

Michael S. Sutton, President and Chief Executive Officer, commented, "We are excited about the growth potential a north side location will provide for our Bank. The new banking center will complement the Bank's current footprint with its east side and west side locations. We believe the new facility will provide greater convenience for our north side clients as well as an opportunity to expand the Bank's client base in the rapidly growing northern sector of Vanderburgh County."

Sutton continued, "The north side office will offer a full line of banking products and will be staffed by experienced professionals who are dedicated to providing the highest level of client service."

Bank of Evansville is a $228 million financial institution which opened in July 2001. The Bank 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.


# # #

AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED BALANCE SHEETS

   (Unaudited)
 June 30,
 2006		     December 31,
    2005		  (Unaudited)
 June 30,
 2005
 
ASSETS
Cash and due from banks $     5,490,683 $     6,811,769 $     4,594,294
Interest bearing balances with banks 17,204 8,637 1,887
Federal funds sold 11,801,000 19,119,000 4,591,000
    Total cash and cash equivalents 17,308,887 25,939,406 9,187,181
Securities available for sale, at fair value 9,860,195 10,779,027 12,263,604
Nonmarketable equity securities 1,060,450 1,007,350 760,250
 
Loans, net of deferred fees 194,425,797 178,468,545 165,627,701
Allowance for loan losses (2,901,600) (2,721,000) (2,501,100)
Net loans 191,524,197 175,747,545 163,126,601
 
Premises and equipment 5,460,520 5,519,786 5,590,457
Other assets 2,699,729 3,081,779 1,846,501
    Total assets $     227,913,978 $     222,074,893 $     192,774,594
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits      
    Non-interest bearing $     17,023,108 $     25,390,342 $     16,628,582
    NOW, MMDA and Savings 92,408,027 94,500,911 65,552,582
    Time deposits 85,030,434 75,635,573 89,414,071
    Total deposits 194,461,569 195,526,826 171,595,235
Federal Home Loan Bank advances 7,000,000 - -
Long term debt 8,248,000 8,248,000 5,000,000
Accrued expenses and other liabilities 732,308 1,633,499 284,837
    Total liabilities 210,441,877 205,408,325 176,880,072
 
SHAREHOLDERS' EQUITY:
Common stock, no par value, 3,000,000 shares authorized;
    issued and outstanding 1,681,791, 1,678,600 and 1,673,350		 17,319,634 15,707,938 15,657,937
Undivided profits 451,348 1,145,044 300,781
Accumulated other comprehensive income (loss) (298,881) (186,414) (64,196)
    Total shareholders' equity 17,472,101 16,666,568 15,894,522
    Total liabilities and shareholders' equity $     227,913,978 $     222,074,893 $     192,774,594

 

AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)


 Three Months ended
June 30,		 Six Months ended
June 30,

2006 2005 2006 2005
Interest income:
Interest and fees on loans $  3,670,630 $  2,518,491 $  7,033,133 $  4,667,154
Securities 115,664 131,549 233,622 270,501
Federal funds sold and other 94,511 37,157 217,123 64,292
Total interest income 3,880,805 2,687,197 7,483,878 5,001,947

Interest expense:
Deposits 1,936,507 1,034,207 3,594,461 1,829,043
Borrowings 143,449 41,804 274,951 42,659
FHLB advances 1,048 - 1,048 2,984
Total interest expense 2,081,004 1,076,011 3,870,460 1,874,686
Net interest income 1,799,801 1,611,186 3,613,418 3,127,261
Provision of loan losses 95,446 259,900 232,418 385,100
Net interest income after provision for loan losses 1,704,355 1,351,286 3,381,000 2,742,161
 
Non interest income:
Salaries and benefits 750,630 639,253 1,435,849 1,287,732
Occupancy and equipment 146,901 138,446 276,585 268,411
Marketing 39,063 18,748 47,759 39,009
Data processing 82,682 70,407 158,579 140,815
Supplies, printing and delivery expense 20,939 17,080 38,173 41,820
Legal and professional 53,798 45,422 104,563 103,159
Merchant credit card processing expense 147,243 88,278 282,673 178,382
Other 208,487 140,118 343,971 280,794
Total non interest expense 1,449,743 1,157,752 2,688,152 2,340,122
Income before income taxes 613,971 492,635 1,363,837 1,007,961
Income taxes 250,100 163,300 555,800 163,300
Net income $  363,871 $  329,335 $  329,335 $  329,335
Basic earnings per common share* $  0.22 $  0.20 $  0.48 $  0.51
Diluted earnings per common share* $  0.20 $  0.19 $  0.44 $  0.48
Average common shares outstanding* 1,681,791 1,666,618 1,681,259 1,664,077
Average diluted shares outstanding* 1,835,907 1,762,169 1,825,915 1,749,397
 
*Adjusted for 5 percent stock dividend paid on June 9, 2006
 

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

  2006 2006 2005 2005 2005 Years ended December 31
(dollars in thousands
except per share data)		 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 2005 2006
EARNINGS
Net interest income $1,800 $ 1,814 $ 1,780 $ 1,692 $ 1,611 $ 6,600 $ 4,698
Provision for loan losses $    95 $   137 $   168 $    52 $   260 $   605 $   631
Non interest income $   359 $   311 $   315 $   339 $   299   $ 1,260 $   843
Non interest expense $ 1,450 $ 1,238 $ 1,298 $ 1,183 $ 1,158  $ 4,822 $ 4,092
Income taxes $   250 $   306 $   261 $   320 $   163 $   744 $    -   
Net income $   364 $   444 $   368 $   476 $   329 $ 1,689 $  818
Basic earnings per share* $  0.22 $  0.26 $  0.22 $  0.28 $  0.20 $  1.01 $  0.51
Diluted earnings per share* $  0.20 $  0.24 $  0.20 $  0.27 $  0.19 $  0.95 $  0.50
Average shares outstanding* $1,681,791 $,1680,727 $1,678,600 $1,677,020 $1,666,618 $1,670,943 $1,603,410
Average diluted shares outstanding* $1,835,907 $1,815,923 $1,796,285 $1,782,170 $1,762,169 $1,769,313 $1,661,840
 
PERFORMANCE RATIOS
Return on average assets 0.65% 0.82% 0.70% 0.94% 0.71% 0.88% 0.55%
Return on average common equity 8.36% 10.58% 8.83% 11.75% 8.47% 10.66% 5.92%
Net interest margin (fully tax equivalent) 3.39% 3.54% 3.57% 3.52% 3.68% 3.64% 3.38%
Efficiency ratio 67.14% 58.27% 64.90% 58.26% 60.61% 61.34% 73.85%
Full time equivalent employees 40 42 40 38 37 40 34
 
CAPITAL
Average equity to average assets 7.78% 7.79% 7.93% 8.04% 8.43% 8.30% 9.36%
Tier 1 leverage capital ratio 10.55% 10.59% 10.79% 10.99% 11.34% 10.79% 9.16%
Tier 1 risk based capital ratio 12.07% 12.13% 12.35% 12.85% 12.66% 12.35% 10.85%
Total risk based capital ratio 14.39% 14.54% 14.91% 15.57% 13.91% 14.91% 12.10%
Book value per share* $10.39 $10.18 $ 9.93 $ 9.73 $ 9.50 $ 9.93 $ 9.00
Cash dividend per share - - - - - - -
 
ASSET QUALITY
Gross loan charge offs $14 $38 - - - - $13
Net loan charge offs $14 $38 - - - - $13
Net loan charge offs to average loans 0.01% 0.02% 0.02% - - - 0.01%
Allowance for loan losses $2,902 $2,820 $2,721 $2,553 $2,501 $2,721 $2,116
Allowance for losses to total loans 1.49% 1.50% 1.52% 1.53% 1.51% 1.52% 1.54%
Nonperforming loans $0 - $182 $182 $182 $182 $70
Other real estate and repossessed assets - - - - - - -
Nonperforming loans to total assets - - 0.08% 0.09% 0.09% 0.08% 0.04%
 
END OF PERIOD BALANCES
Loans $194,426 $187,861 $178,469 $167,036 $165,628 $178,469 $137,587
Total earning assets $217,642 $213,911 $209,683 $197,001 $183,349 $209,683 $156,757
Total assets $227,914 $225,753 $222,075 $206,969 $192,775 $222,075 $165,634
Deposits $194,462 $199,198 $195,527 $181,166 $171,595 $195,527 $149,747
Shareholders' equity $17,472 $17,122 $16,667 $16,335 $15,895 $16,667 $14,946
 
AVERAGE BALANCES
Loans $193,384 $184,589 $174,165 $166,464 $156,924 $160,230 $119,091
Total earning assets $212,837 $207,850 $197,882 $190,786 $175,740 $181,559 $139,032
Total assets $224,236 $218,650 $208,417 $200,197 $185,103 $191,064 $147,797
Deposits $197,852 $192,302 $182,786 $176,189 $166,052 $169,836 $132,276
Shareholders' equity $17,455 $17,029 $16,523 $16,095 $15,598 $15,850 $13,827
 
*Adjusted for 5 percent stock dividend paid June 9, 2006