FOR IMMEDIATE RELEASE
For: American Community Bancorp, Inc. Contact: Thomas L. Austerman
(Bank of Evansville) 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, 2003, WHICH ARE ON FILE WITH THE OFFICE OF THE COMPTROLLER OF THE
CURRENCY.
# # #
AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED) (UNAUDITED)
SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30,
2004 2003 2003
------------- ------------- -------------
ASSETS
Cash and due from banks $ 3,811,723 $ 4,862,221 $ 2,374,957
Interest bearing balances with banks 2,405,044 2,454,940 2,200,000
Federal funds sold 1,903,000 2,690,000 2,097,000
------------- ------------- -------------
Total cash and cash equivalents 8,119,767 10,007,161 6,671,957
Securities available for sale, at fair value 14,852,395 14,685,496 12,826,699
Nonmarketable equity securities 671,900 586,600 475,200
Loans, net of allowance for loan losses of
$1,952,000, $1,498,500 and $1,353,500 128,006,256 97,400,525 91,454,873
Premises and equipment 5,588,953 5,663,967 5,735,469
Other assets 1,731,664 609,004 534,087
------------- ------------- -------------
Total assets $ 158,970,935 $ 128,952,753 $ 117,698,285
============= ============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits
Non-interest bearing $ 13,061,798 $ 13,471,364 $ 10,509,776
Interest bearing 127,493,900 102,035,140 93,694,176
------------- ------------- -------------
Total deposits 140,555,698 115,506,504 104,203,952
Federal funds purchased & other borrowed funds 3,500,000 - -
Accrued expenses and other liabilities 269,712 265,374 377,363
------------- ------------- -------------
Total liabilities 144,325,410 115,771,878 104,581,315
SHAREHOLDERS' EQUITY
Common stock, no par value, 3,000,000 shares authorized;
1,582,417, 1,499,042 and 1,499,042 issued and outstanding
at amount paid in 15,536,687 14,519,877 14,519,877
Accumulated deficit (899,525) (1,362,304) (1,419,504)
Accumulated other comprehensive income 8,363 23,302 16,597
------------- ------------- -------------
Total shareholders' equity 14,645,525 13,180,875 13,116,970
------------- ------------- -------------
Total liabilities and shareholders' equity $ 158,970,935 $ 128,952,753 $ 117,698,285
============= ============= =============
AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2004 2003 2004 2003
----------- ----------- ----------- -----------
INTEREST INCOME:
Interest and fees on loans $ 1,636,701 $ 1,148,802 $ 4,382,144 $ 3,319,270
Securities 156,919 123,441 479,701 312,321
Interest bearing balances with other banks 11,908 2,971 33,423 6,791
Federal funds sold 9,460 4,086 17,914 26,496
----------- ----------- ----------- -----------
TOTAL INTEREST INCOME 1,814,988 1,279,300 4,913,182 3,664,878
----------- ----------- ----------- -----------
INTEREST EXPENSE:
Deposits 601,170 496,074 1,603,989 1,471,332
Federal funds purchased 2,041 568 2,461 823
FHLB advances 7,405 - 8,352 -
----------- ----------- ----------- -----------
TOTAL INTEREST EXPENSE 610,616 496,642 1,614,802 1,472,155
----------- ----------- ----------- -----------
NET INTEREST INCOME 1,204,372 782,658 3,298,380 2,192,723
Provision for loan losses 207,000 78,500 466,179 206,500
NET INTEREST INCOME AFTER
----------- ----------- ----------- -----------
PROVISION FOR LOAN LOSSES 997,372 704,158 2,832,201 1,986,223
OTHER INCOME
Service charges on deposit accounts 32,487 19,345 76,474 50,017
Gain on sale of loans 81,567 103,372 280,958 317,430
Gain on sale of securities - 14,988 7,215 14,988
Other 86,838 25,953 203,865 114,519
----------- ----------- ----------- -----------
TOTAL OTHER INCOME 200,892 163,658 568,512 496,954
OTHER EXPENSE
Salaries and benefits 567,320 459,750 1,674,153 1,290,288
Occupancy and equipment 108,666 100,944 312,403 265,562
Marketing 19,948 11,241 66,509 63,159
Data processing 63,606 53,793 181,796 156,638
Supplies, printing and delivery expense 18,306 13,047 54,410 55,721
Legal and professional 70,691 41,052 225,485 159,142
Other 167,766 79,411 423,178 248,172
----------- ----------- ----------- -----------
TOTAL OTHER EXPENSE 1,016,303 759,238 2,937,934 2,238,682
----------- ----------- ----------- -----------
INCOME BEFORE INCOME TAXES 181,961 108,578 462,779 244,495
Income taxes - - - -
----------- ----------- ----------- -----------
NET INCOME 181,961 108,578 462,779 244,495
=========== =========== =========== ===========
BASIC EARNINGS PER SHARE $ 0.12 $ 0.07 $ 0.31 $ 0.18
DILUTED EARNINGS PER SHARE $ 0.12 $ 0.07 $ 0.30 $ 0.18
AVERAGE SHARES OUTSTANDING 1,527,730 1,499,042 1,508,605 1,331,976
AVERAGE DILUTED SHARES OUTSTANDING 1,602,062 1,511,485 1,559,143 1,342,532