EXHIBIT 99.1
AMERICAN COMMUNITY BANCORP, INC.
FOR IMMEDIATE RELEASE
February 22, 2005 Contact: Michael S. Sutton
Stephen C. Byelick, Jr.
Phone: (812) 962-2265
AMERICAN COMMUNITY BANCORP, INC. ANNOUNCES RECORD 2004 RESULTS
AND PLANS TO TERMINATE ITS SEC REPORTING OBLIGATION
Net Income For Full-Year 2004 Increases 171% Over Prior Year
Fourth Quarter Net Income Rose 522% Compared to 2003
Assets Grow 29% to $166 Million At 2004 Year-End
Intends to Terminate SEC Reporting Obligation
EVANSVILLE, IN, FEBRUARY 22, 2005 - AMERICAN COMMUNITY BANCORP, INC. (OTCBB:
ACBP), THE HOLDING COMPANY FOR BANK OF EVANSVILLE, today reported consolidated
net income for the year ended December 31, 2004, of $818,423, an increase of
$516,729 above the $301,694 reported for 2003. Diluted earnings per share were
$0.52 for 2004, reflecting an increase of $0.30 per share or 136.4 percent,
compared to $0.22 per share earned for 2003.
The consolidated net income was $355,643 for the fourth quarter of 2004,
compared with $57,199 for the same quarter in 2003, an increase of 521.7
percent. Diluted earnings per share for the fourth quarter of 2004 were $0.22
per share, an $0.18 increase over the $0.04 reported for the prior-year fourth
quarter.
Total assets at December 31, 2004, were $165,634,102, increasing $36,681,349, or
28.5 percent, from last year. Loans rose $38,688,097, or 39.1 percent, during
2004 and totaled $137,587,122 at year-end. The growth in assets and loans was
primarily funded by a $34,240,397, or 29.6 percent, increase in deposits during
the same period.
Michael S. Sutton, President and Chief Executive Officer, commented, "We are
pleased to report the strong growth in net income and assets we achieved in
2004. Our performance continues to be driven by commercial loan growth in our
target markets, small and mid-sized businesses in the Evansville area." Sutton
went on to say, "Loans with a variable rate represent 75.9 percent of our loan
portfolio which makes us well positioned in a rising rate environment."
Total revenues, consisting of net interest income and non-interest income, for
the year ended December 31, 2004, were $5,540,747, an increase of $1,871,048, or
51.0 percent, over the $3,669,699 reported in the prior year. Net interest
income for 2004 was $4,697,681 which is $1,653,670, or 54.3 percent, above the
$3,044,011 reported for 2003. The increase in net interest income in 2004 over
the prior year is attributable to an increase in average interest-earning assets
of 36.3 percent and an increase in the net interest margin of 40 basis points to
3.4 percent in 2004 from the 2003 level of 3.0 percent. Non-interest income for
2004 was $843,066, compared to $625,688 in 2003, reflecting an increase of
$217,378, or 34.7 percent. Non-interest expense for 2004 was $4,091,645, an
increase of $1,075,140, or 35.6 percent, over the $3,016,505 reported for 2003.
The increase in the level of operating expenses is a direct result of the
infrastructure growth necessary to support the growth of our balance sheet and
earnings. The efficiency ratio for 2004 was 73.9 percent, an improvement of 8.3
percent over the efficiency ratio of 82.2 for the year 2003.
4424 VOGEL ROAD
EVANSVILLE, INDIANA 47715
PHONE: (812) 962-2265 FAX: (812) 962-1383
Total revenues increased $693,844, or 70.8 percent for the fourth quarter of
2004, as compared to the same period last year. Net interest income increased by
$548,015 for the fourth quarter of 2004, when compared to the same quarter of
2003, due to a 32.5 percent increase in average interest earning assets and an
increase in the net interest margin from 2.9 percent for the fourth quarter of
2003 to 3.6 percent for the fourth quarter of 2004. Non-interest expense for the
fourth quarter of 2004 was $1,153,713, as compared to $777,812 for the same
period last year. Although the dollar amount of non-interest expense for the
fourth quarter of 2004 exceeded that of the same period in 2003, the efficiency
ratio improved to 68.9 percent for the fourth quarter of 2004, compared to 79.4
percent in the same quarter of the prior-year as the growth of revenue exceeded
that of operating expense.
The provision for loan losses was $164,500 for the fourth quarter of 2004 and
$145,000 for the same period of 2003. The full-year provision for loan losses
was $630,679 and $351,500 for the years ended December 31, 2004, and 2003,
respectively. The ratio of the allowance for loan losses to total loans was 1.5
percent at December 31, 2004 and 2003.
Mr. Sutton commented, "Asset quality remains strong as evidenced by our low
level of charge-offs and non-performing assets. We have experienced loan
charge-offs of only $14,000 since opening for business in July 2001, and as of
December 31, 2004, the Bank had no non-performing loans. These statistics are
reflective of the high level of expertise of our lending and credit
administration personnel.
The Company is also announcing today its intent to file a Form 15 with the
Securities and Exchange Commission (the "Commission") to terminate its reporting
obligation under the Securities Exchange Act of 1934 (the "Act"), as amended.
The Company plans to file the Form 15 with the Commission on February 25, 2005.
In keeping with our constant goal to increase shareholder value, the Company is
taking this action to reduce the costs associated with being a "reporting
company" under the Act. Management estimates the cost savings resulting from
elimination of the reporting requirements under the Act would be approximately
$200,000 in 2005 and in excess of $160,000 in subsequent years. Additionally,
the reduced reporting burden will allow the Company's management to devote more
attention and effort to the Company's operations and financial objectives. The
Company's stock will continue to be traded, as previously, on the OTCBB, and the
Company intends to continue to hold annual meetings and provide financial
information to its shareholders through periodic mailings and through the
Investor Relations portion of its web site.
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 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)
<Table>
<Caption>
DECEMBER 31, DECEMBER 31,
2004 2003
------------- -------------
ASSETS
Cash and due from banks $ 3,412,850 $ 4,862,221
Interest bearing balances with banks 2,406,076 2,454,940
Federal funds sold 2,412,000 2,690,000
------------- -------------
Total cash and cash equivalents 8,230,926 10,007,161
Securities available for sale, at fair value 13,602,753 14,685,496
Nonmarketable equity securities 677,000 586,600
Loans 137,587,122 98,899,025
Allowance for loan losses (2,116,000) (1,498,500)
------------- -------------
Net loans 135,471,122 97,400,525
Premises and equipment 5,602,767 5,663,967
Other assets 2,049,534 609,004
------------- -------------
Total assets $ 165,634,102 $ 128,952,753
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits
Non-interest bearing $ 13,427,677 $ 13,471,364
Interest bearing 136,319,224 102,035,140
------------- -------------
Total deposits 149,746,901 115,506,504
Federal funds purchased & other borrowed funds 500,000 --
Accrued expenses and other liabilities 441,468 265,374
------------- -------------
Total liabilities 150,688,369 115,771,878
SHAREHOLDERS' EQUITY
Common stock, no par value, 3,000,000 shares authorized;
1,582,417 and 1,499,042 issued and outstanding
at amount paid in 15,536,687 14,519,877
Accumulated deficit (543,881) (1,362,304)
Accumulated other comprehensive income (loss) (47,073) 23,302
------------- -------------
Total shareholders' equity 14,945,733 13,180,875
------------- -------------
Total liabilities and shareholders' equity $ 165,634,102 $ 128,952,753
============= =============
</Table>
AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<Table>
<Caption>
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
2004 2003 2004 2003
------------------------- -------------------------
INTEREST INCOME:
Interest and fees on loans $1,924,167 $1,231,126 $6,306,310 $4,550,396
Securities 148,153 140,618 627,852 452,939
Interest bearing balances with other banks 16,329 13,595 49,753 20,386
Federal funds sold 7,448 3,549 25,362 30,046
---------- ---------- ---------- ----------
TOTAL INTEREST INCOME 2,096,097 1,388,888 7,009,277 5,053,767
---------- ---------- ---------- ----------
INTEREST EXPENSE:
Deposits 683,423 536,759 2,287,412 2,008,092
Federal funds purchased 2,970 841 5,431 1,664
FHLB advances 10,401 -- 18,753 --
---------- ---------- ---------- ----------
TOTAL INTEREST EXPENSE 696,794 537,600 2,311,596 2,009,756
---------- ---------- ---------- ----------
NET INTEREST INCOME
1,399,303 851,288 4,697,681 3,044,011
Provision for loan losses 164,500 145,000 630,679 351,500
NET INTEREST INCOME AFTER
---------- ---------- ---------- ----------
PROVISION FOR LOAN LOSSES 1,234,803 706,288 4,067,002 2,692,511
NON INTEREST INCOME
Service charges on deposit accounts 34,825 22,034 111,301 72,051
Gain on sale of loans 106,806 75,919 387,766 393,349
Gain on sale of securities -- -- 7,215 14,988
Other 132,922 30,771 336,784 145,300
---------- ---------- ---------- ----------
TOTAL NON INTEREST INCOME
274,553 128,724 843,066 625,688
NON INTEREST EXPENSE
Salaries and benefits 540,992 458,945 2,215,145 1,749,234
Occupancy and equipment 128,882 61,842 441,282 327,404
Marketing 29,835 16,058 96,345 79,217
Data processing 69,487 59,643 251,282 216,281
Supplies, printing and delivery expense 33,439 16,163 87,849 71,884
Legal and professional 126,915 46,895 352,399 206,037
Other 224,163 118,266 647,343 366,448
---------- ---------- ---------- ----------
TOTAL NON INTEREST EXPENSE 1,153,713 777,812 4,091,645 3,016,505
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES
355,643 57,200 818,423 301,694
Income taxes -- -- -- --
---------- ---------- ---------- ----------
NET INCOME $ 355,643 $ 57,200 $ 818,423 $ 301,694
========== ========== ========== ==========
BASIC EARNINGS PER SHARE $ 0.22 $ 0.04 $ 0.54 $ 0.22
DILUTED EARNINGS PER SHARE $ 0.22 $ 0.04 $ 0.52 $ 0.22
AVERAGE SHARES OUTSTANDING 1,582,417 1,499,042 1,527,058 1,371,208
AVERAGE DILUTED SHARES OUTSTANDING 1,653,259 1,520,254 1,582,705 1,384,282
</Table>