Evansville, Indiana, October 25, 2005 – American Community Bancorp, Inc. (the “Company”) (OTCBB: ACBP), the holding company for Bank of Evansville, today reported consolidated net income of $476,558 for the third quarter of 2005, reflecting a 161.9 percent increase over the $181,961 earned in the third quarter of 2004. The consolidated net income for the third quarter of 2005 includes state and federal income tax expense of $319,600. No income tax expense was recorded in the same period of 2004 due to utilization of the Company’s net operating loss carryover from losses incurred during start-up operations. Diluted earnings per share for the third quarter of 2005 were $0.28 per share, exceeding the diluted per share results for the same period in 2004 by $0.17 or 154.5 percent.

For the first nine months of 2005, consolidated net income was $1,321,218, up $858,439 or 185.5 percent from the first nine months of 2004. The Company recorded state and federal income tax expense of $482,900 for the nine months ending September 30, 2005, while none were reported for the same period in the prior year for the reasons described in the previous paragraph. Diluted earnings per share for the first nine months of 2005 were $0.79, increasing $0.49 or 163.3 percent over the same period in 2004.

Total assets at September 30, 2005, were $206,969,036, up $47,998,100 or 30.2 percent from $158,970,936 at the same date a year ago. The increase in assets from the prior year was primarily due to strong loan growth. Loans rose $37,077,528, or 28.5 percent from September 30, 2004, and totaled $167,035,783 at September 30, 2005. Loan and asset growth was primarily funded by a $40,528,911, or 28.8 percent increase in deposits since September 30, 2004. Non interest bearing demand deposits at September 30, 2005, grew $3,998,993, or 30.4 percent over the same period a year ago, principally due to an increase in business checking accounts.

Michael S. Sutton, President and Chief Executive Officer, commented, “We are proud to have reached the $200 million asset size milestone in just over four years of operations. This accomplishment is the result of the outstanding efforts of our banking professionals and the support we have received from the community since opening for business in July of 2001.

Total revenues, consisting of net interest income and non interest income, were $2,031,031 for the third quarter of 2005, increasing 44.5 percent from $1,405,264 in the same period last year. Net interest income increased $487,958 for the third quarter of 2005, when compared to the same quarter of 2004, principally due to a 72.6 percent increase in interest and fees earned on loans. The net interest margin for the third quarter of 2005 was 3.52 percent, increasing from 3.34 percent in 2004, primarily due to the Company’s asset sensitive balance sheet. Non interest expense for the third quarter of 2005 was $1,183,273, compared to $1,016,303 for the same period last year. The efficiency ratio for the third quarter was 58.3 percent and 72.3 percent for 2005 and 2004, respectively. The improvement in the efficiency ratio is the result of growing revenues faster than expenses.

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

Total revenues for the first nine months of 2005 were $5,764,214, an increase of $1,897,322 or 49.1 percent compared to the same period in the prior year. Net interest income for the first nine months of 2005, driven by the growth of interest and fees on loans, was $4,819,591, which is $1,521,211 or 46.1 percent higher than the $3,298,380 reported for the first nine months of 2004. The net interest margin for the nine months ended September 30, 2005, was 3.66 percent, 37 basis points higher than the net interest margin of 3.29 percent for the same period of 2004. The efficiency ratio for the nine months ended September 30, 2005, of 61.1 percent compares favorably to the efficiency ratio of 76.0 percent for the first nine months of 2004, reflecting across-the-board increases in revenues and the Company’s on-going commitment to control expenses.

The provision for loan losses was $51,600 for the third quarter of 2005 and $207,000 for the third quarter of 2004. The provision for loan losses for the nine months ended September 30, 2005, was $436,700, compared to $466,179 for the same period a year ago. The ratio of the allowance for loan losses to total loans was 1.53 percent and 1.50 percent at September 30, 2005 and 2004, respectively.

Mr. Sutton said, “Our asset quality remains strong as a result of our rigorous underwriting and credit administration standards. Non performing loans were $182,426 at September 30, 2005, or 0.11 percent of loans and, other than the non accrual loans, there were no loans past due 30 days. There have been no loans charged off in 2005.  These statistics reflect positively on our credit culture.”

Mr. Sutton concluded, “We are pleased with the asset and net income growth the Company has achieved through the third quarter of 2005. We will continue to focus on providing the superior level of client service that, we believe, has been the foundation for our success.”

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.

AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED BALANCE SHEETS

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