Bank of Evansville


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October 26, 2004
For Immediate Release

For: American Community Bancorp, Inc.
(Bank of Evansville)		 Contact: Thomas L. Austerman
Stephen C. Byelick, Jr.
Michael S. Sutton
    Phone: (812) 962-2265

American Community Bancorp, Inc., the Bank Holding Company of Bank of Evansville, Announces Assets and Revenues Continue to Grow at a Rapid Pace

Assets Increase 35 Percent to $158.9 Million Net Income up 89% to $462.8 Thousand Year-to-Date Stock Now Trading Under Symbol OTCBB: ACBP


Evansville, Indiana, October 26, 2004 - American Community Bancorp, Inc., the holding company of Bank of Evansville, (OTCBB: ACBP) announced its third quarter and year-to-date 2004 financial results today. According to Thomas L. Austerman, Chief Executive Officer of the holding company, the financial results were driven by: 1) growth in the commercial and industrial loan portfolio; 2) an increase in the Bank's net interest margin; and 3) increases in non-interest income.

Austerman added, "We are pleased to report that our growth in core earnings, driven primarily by the expansion of our commercial loan portfolio, is rising according to plan. The growth of our commercial banking relationships accelerated during the third quarter and validates our belief that a strong commitment to delivering high quality products at competitive prices, together with responsive service, is valued by existing and potential clients." He continued, "The dedication of our people, combined with the strong business environment that exists in the local market, has been the key to our success."

Stephen C. Byelick, Jr., Chief Financial Officer, reported, "For the nine month period ending September 30, 2004, assets were $158,970,935, an increase of $41,272,650, or 35 percent, compared to September 30, 2003." He went on to say, "Net loans after allowance for loan losses increased $36,551,383, or 39.9 percent, for the same period, and deposits grew $36,351,746 or 34.9 percent, compared to the same date a year earlier." He added, "The Company's capital increased $1,528,555 from September, 2003, to September, 2004, resulting in a capital to asset ratio of 9.21 percent, and we continue to be classified as a well-capitalized bank."

Byelick reported, "Total revenues for the first nine months of 2004 were $5,481,694, compared to $4,161,832 for the first nine months of 2003." He continued, "This increase of $1,319,862 represents an increase of some 31.7 percent in total revenues. Net interest income after provision for loan losses was up $845,978, or 42.6 percent, compared to the same period in 2003. Non-interest income increased $71,558, or 14.4 percent, for the same period. Net income increased $218,284 for a net income of $462,779, compared to net income of $244,495 the Bank reported for the first nine months of 2003. Net income for the first nine months of 2004 was 30 cents per share, compared to 18 cents per share in 2003. Diluted earnings per share increased 66.7 percent."

Comparing the third quarter 2004 results with the same quarter of a year ago, Byelick said, "Net income was $181,961 for the third quarter this year, compared to $108,578 for the same quarter last year, an increase of 67.6 percent. Diluted earnings per share were up 71.4 percent, increasing from 7 cents per share during the third quarter of 2003 to 12 cents per share during the same quarter this year." Byelick concluded by saying, "The bottom-line improvements in the quarter-to-quarter comparisons were driven primarily by improving the net interest margin after provision for loan losses 41.6 percent and a 22.7 percent increase in non-interest income."

Bank of Evansville is a full service, state chartered bank that opened on July 2, 2001, to provide community banking for businesses and consumers in Evansville and Southwestern Indiana. The Bank, whose stock formerly traded under the OTCBB symbol BEVN, became a wholly-owned subsidiary of American Community Bancorp, Inc. as of September 14, 2004, and now trades under the OTCBB symbol ACBP.

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, 2002, which are on file with the Office of the Comptroller of the Currency.
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