American Community Bancorp Reports Second Quarter Results

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Aug 13, 2010, 04:17 ET

EVANSVILLE, Ind., Aug. 13 /PRNewswire-FirstCall/ --

Net loss of $171,125 for the second quarter 2010; year-to-date 2010 earnings equal $282,967, or $0.13 per diluted share.
Year-to-date revenue increase of $366,023, or 7.6 percent over the same period in 2009.
Core deposit growth of 14.2 percent over the same date a year ago.
Non performing assets continue to decline, representing 1.78 percent of total assets at June 30, 2010.
The Company remains "Well Capitalized" by all regulatory measures.

American Community Bancorp, Inc. (the "Company") (OTC Bulletin Board: ACBP), the holding company for Bank of Evansville, today reported a consolidated net loss for the second quarter of 2010 of $171,125, compared to net income of $8,636 for the same quarter in 2009. Diluted earnings per share, adjusted for the 5 percent stock dividend declared in April 2010, were $(0.08) and $0.00 for the second quarter of 2010 and 2009, respectively.

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For the first six months of 2010, consolidated net income was $282,967, compared to $312,598 for the first six months of 2009, a decrease of 9.5 percent. Diluted earnings per share, adjusted for the 5 percent stock dividend declared in April 2010, for the first six months of 2010 were $0.13, compared to $0.15 for the same period in 2009.

Michael S. Sutton, President and Chief Executive Officer, commented, "We determined that portions of certain collateral dependent loans should be charged off due to the sustained decline in real estate values. This prudent action increased our provision expense for the quarter, significantly impacting our earnings. While disappointed with our second quarter loss, given the challenging conditions experienced both nationally and locally, we are pleased with our year-to-date operating performance. In evaluating our mid-year results, many positives stand out – revenue increase of 7.6 percent, double-digit core deposit growth, and a 14.2 percent reduction in non performing assets over the same date a year ago."

Mr. Sutton continued, "Loan demand remained soft during the second quarter, and we believe this trend will continue for the balance of the year. Growing core deposits by over 14 percent and increasing our margin by 5 basis points over the same quarter last year reflect our ability to continue to expand the core earnings capacity of our Company even in this difficult environment."

Operating Performance

Total revenues, consisting of net interest income and non interest income, were $2,602,007 for the second quarter of 2010, which was $106,240 or 4.3 percent higher than the same period last year. Net interest income was $2,389,738 for the second quarter of 2010, increasing $207,666 or 9.5 percent over the same quarter of 2009.

Non interest income was $212,269 for the second quarter of 2010, which was $101,426 lower than the same period last year. Non interest expense for the second quarter of 2010 was $1,957,932, compared to $1,937,031 for the second quarter of 2009, an increase of 1.1 percent.

Total revenues for the first six months of 2010 were $5,157,850, increasing $366,023 or 7.6 percent compared to the same period in the prior year. Net interest income for the first six months of 2010 was $4,795,044, which was $597,026 or 14.2 percent higher than the $4,198,018 reported for the first six months of 2009. Non interest income for the first six months of 2010 decreased $231,003 or 38.9 percent primarily due to lower gains on the sale of residential mortgage loans and losses attributable to the sale of other real estate owned during 2010. Non interest expense for the first six months of 2010 was $3,629,183 compared to $3,505,729 for the same period in 2009.

Asset Quality

The provision for loan losses for the second quarter was $925,000 in 2010 and $530,000 in 2009. Net charge-offs were $1,682,061 for the current quarter. The ratio of the allowance for loan losses to total loans was 1.53 percent at June 30, 2010, and 1.76 percent at June 30, 2009. As a percentage of non performing loans, the allowance for loan loss was 94.78 percent as of June 30, 2010. Non performing assets at June 30, 2010, were $5,539,993 or 1.78 percent of total assets, compared to 2.18 percent of total assets at the same date a year ago.

Balance Sheet

Total assets at June 30, 2010, were $311,732,711, compared to $295,892,299 at the same date a year ago, an increase of $15,840,412 or 5.4 percent. Loans declined $9,402,606 or 3.7 percent and totaled $246,292,433 at June 30, 2010, compared to $255,695,039 reported at June 30, 2009. Total deposits at June 30, 2010, were $269,311,020, reflecting an increase of $15,123,328 or 6.0 percent over the corresponding total a year ago. Core deposits, consisting of non-wholesale deposit balances, were $252,992,093 at June 30, 2010, reflecting a $31,508,581, or 14.2 percent increase over the same date a year ago. Core deposits equaled 93.9 percent to total deposits at the end of the second quarter 2010.

Capital

The Company remains "well capitalized" with a Tier I capital to risk weighted assets ratio of 12.1 percent at June 30, 2010. In terms of dollars, the Company's Tier I capital of $30,875,231 at June 30, 2010, is $15,551,845 above the minimum to be "well capitalized" under regulatory guidelines.

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 certain forward-looking statements. These forward-looking statements may be identified by the use of such forward-looking terminology as "expect," "believe," "plan," "anticipate," "may," "will," or similar statements or variations of such terms or otherwise express views concerning trends and the future. Forward-looking statements involve risks and uncertainties which could cause our results to differ materially from such forward-looking statements. We assume no obligation for updating any such forward-looking statement at any time.


AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED BALANCE SHEETS

	(Unaudited)		(Unaudited)
	June 30,	December 31,	June 30,
	2010	2009	2009

ASSETS
Cash and due from banks	$ 3,557,315	$ 3,070,354	$ 22,157,486
Interest bearing balances with banks	16,788,886	11,827,957	2,133,581
Federal funds sold	15,310,000	3,256,000	-
Total cash and cash equivalents	35,656,201	18,154,311	24,291,067
Securities available for sale, at fair value	15,401,599	13,448,255	7,662,136
Nonmarketable equity securities	1,364,850	1,364,850	1,364,850

Loans, net of deferred fees	246,292,433	259,142,061	255,695,039
Allowance for loan losses	(3,773,860)	(4,515,926)	(4,511,356)
Net loans	242,518,573	254,626,135	251,183,683

Premises and equipment	7,135,753	7,176,779	7,318,487
Other real estate owned	1,558,165	982,550	80,000
Other assets	8,097,570	6,078,017	3,992,076
Total assets	$ 311,732,711	$ 301,830,897	$ 295,892,299

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non interest bearing	$ 27,764,701	$ 32,157,834	$ 28,120,706
NOW, MMDA and Savings	183,099,233	150,555,986	129,771,520
Time deposits	58,447,086	77,349,304	96,295,466
Total deposits	269,311,020	260,063,124	254,187,692
Long term debt	18,248,000	18,248,000	18,248,000
Accrued expenses and other liabilities	950,345	779,007	1,649,049
Total liabilities	288,509,365	279,090,131	274,084,741

SHAREHOLDERS' EQUITY
Common stock, no par value, 3,000,000 shares
authorized; issued and outstanding 2,141,859
2,122,244, and 2,122,244	23,024,242	21,813,998	21,766,400
Undivided profits	132,181	896,962	5,980
Accumulated other comprehensive income (loss)	66,923	29,806	35,178
Total shareholders' equity	23,223,346	22,740,766	21,807,558
Total liabilities and shareholders' equity	$ 311,732,711	$ 301,830,897	$ 295,892,299


AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)
		Three months ended		Six months ended
		June 30,		June 30,
Interest income:		2010	2009	2010	2009
	Interest and fees on loans	$ 3,346,471	$ 3,323,317	$ 6,703,422	$ 6,643,593
	Securities:
	U. S. government agencies and corp.	86,818	78,352	155,391	180,775
	State, County, Municipal bonds	13,832	9,833	27,010	11,465
	Other securities	20,332	14,543	40,776	29,618
	Federal funds sold	2,064	-	2,252	-
	Deposits with other banks	43,858	4,086	73,121	7,894
	Total interest income	3,513,375	3,430,131	7,001,972	6,873,345

Interest expense:
	Deposits	1,013,818	1,118,755	1,989,725	2,412,211
	Fed funds purchased	340	3,123	631	3,369
	Borrowings	109,479	126,181	216,572	259,747
	Total interest expense	1,123,637	1,248,059	2,206,928	2,675,327
Net interest income		2,389,738	2,182,072	4,795,044	4,198,018
Provision for loan losses		925,000	530,000	1,100,000	740,000
Net interest income after provision		1,464,738	1,652,072	3,695,044	3,458,018
for loan losses

Non interest income:
	Service charges on deposit accounts	71,883	94,259	141,603	158,993
	Gain on sale of loans	121,544	165,437	202,260	334,158
	Gain (loss) on sale of OREO	(57,426)	-	(120,081)	354
	Other	76,268	53,999	139,024	100,304
	Total non interest income	212,269	313,695	362,806	593,809

Non interest expense:
	Salaries and benefits	925,521	933,514	1,834,235	1,805,977
	Occupancy and equipment, net	154,827	163,755	317,294	338,063
	Marketing	20,203	23,326	30,684	29,167
	Data processing	124,507	114,094	240,128	224,501
	Supplies, postage and printing	23,902	18,635	40,401	31,021
	Legal and professional	169,118	130,190	312,186	268,749
	Other	539,854	553,517	854,255	808,251
	Total non interest expense	1,957,932	1,937,031	3,629,183	3,505,729
Income before income taxes		(280,925)	28,736	428,667	546,098
Income taxes		(109,800)	20,100	145,700	233,500
Net income		$ (171,125)	$ 8,636	$ 282,967	$ 312,598


Basic earnings per common share*		$ (0.08)	$ -	$ 0.13	$ 0.15
Diluted earnings per common share*		$ (0.08)	$ -	$ 0.13	$ 0.15
Average common shares outstanding*		2,121,633	2,103,694	2,118,300	2,103,374
Average diluted shares outstanding*		2,164,919	2,166,346	2,154,285	2,149,339


* Adjusted for 5 percent stock dividends paid on June 11, 2009 and June 14, 2010


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

	2010	2010	2009	2009	2009	Years ended December 31
(dollars in thousands except per share data)	2nd Qtr	1st Qtr	4th Qtr	3rd Qtr	2nd Qtr	2009	2008
EARNINGS
Net interest income	$ 2,390	$ 2,405	$ 2,417	$ 2,250	$ 2,182	$ 8,865	$ 8,810
Provision for loan losses	$ 925	$ 175	$ 225	$ 250	$ 530	$ 1,215	$ 1,712
Non interest income	$ 212	$ 151	$ 370	$ 250	$ 314	$ 1,214	$ 2,022
Non interest expense	$ 1,958	$ 1,671	$ 1,686	$ 1,680	$ 1,937	$ 6,872	$ 6,900
Income taxes	$ (110)	$ 256	$ 321	$ 234	$ 20	$ 788	$ 923
Net income	$ (171)	$ 454	$ 555	$ 336	$ 9	$ 1,204	$ 1,297
Basic earnings per share*	$ (0.08)	$ 0.21	$ 0.26	$ 0.16	$ -	$ 0.57	$ 0.62
Diluted earnings per share*	$ (0.08)	$ 0.21	$ 0.26	$ 0.16	$ -	$ 0.56	$ 0.61
Average shares outstanding*	2,121,633	2,114,926	2,104,730	2,103,508	2,103,693	2,103,752	2,078,935
Average diluted shares outstanding*	2,164,919	2,143,610	2,125,215	2,147,947	2,166,346	2,141,407	2,122,652

PERFORMANCE RATIOS
Return on average assets	-0.22%	0.61%	0.75%	0.46%	0.01%	0.41%	0.45%
Return on average common equity	-2.90%	7.94%	9.71%	6.00%	0.16%	5.42%	6.23%
Net interest margin (fully tax equivalent)	3.29%	3.40%	3.37%	3.20%	3.24%	3.21%	3.20%
Efficiency ratio	75.25%	65.39%	60.49%	67.21%	77.61%	68.18%	63.70%
Full time equivalent employees	49	48	48	49	50	49	48

CAPITAL
Average equity to average assets	7.71%	7.73%	7.69%	7.67%	7.71%	7.63%	7.24%
Tier 1 leverage capital ratio	10.07%	10.35%	10.27%	10.19%	10.09%	10.27%	9.70%
Tier 1 risk based capital ratio	12.09%	12.08%	11.81%	11.66%	11.45%	11.81%	11.26%
Total risk based capital ratio	13.45%	13.42%	13.23%	13.16%	13.00%	13.23%	12.87%
Book value per share*	$ 10.84	$ 10.89	$ 10.71	$ 10.49	$ 10.27	$ 10.71	$ 10.18
Cash dividend per share	-	-	-	-	-	-	-

ASSET QUALITY
Gross loan charge offs	$ 1,708	$ 173	$ 563	$ 32	$ 450	$ 1,208	$ 509
Net loan charge offs	$ 1,682	$ 160	$ 561	$ (91)	$ 438	$ 1,050	$ 478
Net loan charge offs to average loans	0.67%	0.06%	0.22%	-0.04%	0.17%	0.41%	0.19%
Allowance for loan losses	$ 3,774	$ 4,531	$ 4,516	$ 4,852	$ 4,511	$ 4,516	$ 4,351
Allowance for losses to total loans	1.53%	1.78%	1.74%	1.88%	1.76%	1.74%	1.65%
Nonperforming loans	$ 3,982	$ 4,478	$ 6,104	$ 6,595	$ 6,376	$ 6,104	$ 5,328
Other real estate and repossessed assets	$ 1,558	$ 1,435	$ 983	$ -	$ 80	$ 983	$ 269
Nonperforming assets to total assets	1.78%	1.92%	2.35%	2.18%	2.18%	2.35%	1.90%

END OF PERIOD BALANCES
Loans	$ 246,292	$ 254,237	$ 259,142	$ 257,478	$ 255,695	$ 259,142	$ 263,454
Total earning assets	$ 295,047	$ 294,355	$ 288,990	$ 290,427	$ 266,797	$ 288,990	$ 277,175
Total assets	$ 311,733	$ 307,873	$ 301,831	$ 301,847	$ 295,892	$ 301,831	$ 295,004
Deposits	$ 269,311	$ 265,397	$ 260,063	$ 260,195	$ 254,188	$ 260,063	$ 254,282
Shareholders' equity	$ 23,223	$ 23,323	$ 22,741	$ 22,268	$ 21,808	$ 22,741	$ 21,402

AVERAGE BALANCES
Loans	$ 251,607	$ 254,095	$ 256,100	$ 252,797	$ 257,429	$ 256,303	$ 255,114
Total earning assets	$ 291,759	$ 286,562	$ 284,815	$ 278,858	$ 269,875	$ 276,267	$ 275,325
Total assets	$ 306,586	$ 300,183	$ 294,918	$ 289,537	$ 287,793	$ 291,074	$ 287,266
Deposits	$ 263,832	$ 257,921	$ 252,905	$ 247,764	$ 245,551	$ 249,359	$ 248,185
Shareholders' equity	$ 23,643	$ 23,203	$ 22,691	$ 22,208	$ 22,182	$ 22,221	$ 20,812

* Adjusted for 5 percent stock dividends paid June 11, 2009 and June 14, 2010