American Community Bancorp Announces 76 Percent Increase in Earnings

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Oct 25, 2010, 04:17 ET

EVANSVILLE, Ind., Oct. 25 /PRNewswire-FirstCall/ -- American Community Bancorp, Inc. (the "Company") (OTC Bulletin Board: ACBP), the holding company for Bank of Evansville, today reported consolidated net income for the third quarter of 2010 of $591,574, an increase of 76.2 percent over the same quarter in 2009. Diluted earnings per share were $0.27 and $0.16 for the third quarter of 2010 and 2009, respectively.

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For the first nine months of 2010, consolidated net income was $874,542 compared to net income of $648,377 for the first nine months of 2009. Diluted earnings per share for the first nine months of 2010 and 2009 were $0.41 and $0.30, respectively.

Michael S. Sutton, President and Chief Executive Officer, commented, "We are pleased to report our third quarter results given the continued softness in both the local and national economy. Although loan demand remains soft, profits were positively impacted by a 9.7 percent increase in average earning assets year over year. The favorable interest rate environment also contributed to a 111.0 percent increase in our mortgage banking fee income for the quarter ending September 30, 2010, compared to the same period a year ago. Given the improvement in both our non performing and classified assets, we did not record any provision for loan losses during the quarter."

Operating Performance

Total revenues, consisting of net interest income and non interest income, were $2,672,872 for the third quarter of 2010, which was $173,772 or 7.0 percent higher than the same period last year. Net interest income was $2,290,689 for the third quarter of 2010, increasing $41,215 or 1.8 percent over the same quarter of 2009. Non interest income of $382,183 for the third quarter of 2010 was $132,557 or 53.1 percent higher compared to the same period in 2009. The increase is primarily from higher gains on the sale of loans resulting from residential mortgage refinancing activity.

Total revenues for the first nine months of 2010 were $7,830,722, increasing $539,795 or 7.4 percent, compared to the same period in the prior year. Net interest income for the first nine months of 2010 was $7,085,732, which was $638,240 or 9.9 percent higher than the $6,447,492 reported for the first nine months of 2009. Non interest income for the first nine months of 2010 decreased $98,445 or 11.7 percent primarily due to losses on the sale of other real estate totaling $126,680 in 2010 compared to a loss of only $4,797 through the first nine months in 2009.

Non interest expense for the third quarter of 2010 was $1,752,228 compared to $1,679,721 for the third quarter of 2009. For the first nine months of 2010, non interest expense was $195,960, or 3.8 percent higher than the same period last year.

Balance Sheet

Total assets at September 30, 2010, were $325,957,731, compared to $301,846,993 at the same date a year ago, an increase of $24,110,738 or 8.0 percent. Loans declined $14,625,946 or 5.7 percent and were $242,851,965 at September 30, 2010, compared to $257,477,911 reported at September 30, 2009. Total deposits at September 30, 2010, were $282,432,590, reflecting an increase of $22,237,223, or 8.6 percent over the corresponding total a year ago.

Asset Quality

During the third quarter of 2010, the Company had net loan charge-offs of $168,210 due to gross loan charge offs of $234,707 and recoveries of $66,497. Year to date, provision expense equals $1,100,000 compared to $990,000 for the same period in 2009. The ratio of the allowance for loan losses to total loans was 1.48 percent at September 30, 2010, and 1.88 percent at September 30, 2009. Non performing assets totaled approximately $5,221,478 at September 30, 2010, compared to $6,595,276 as of the same date a year ago, reflecting a decrease of 20.8 percent.

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)
	September 30,	December 31,	September 30,
	2010	2009	2009

ASSETS
Cash and due from banks	$ 4,259,319	$ 3,070,354	$ 4,871,730
Interest bearing balances with banks	20,177,663	11,827,957	15,050,703
Federal funds sold	14,923,000	3,256,000	4,946,000
Total cash and cash equivalents	39,359,982	18,154,311	24,868,433
Securities available for sale, at fair value	29,786,329	13,448,255	11,907,634
Nonmarketable equity securities	1,364,850	1,364,850	1,269,450

Loans, net of deferred fees	242,851,965	259,142,061	257,477,911
Allowance for loan losses	(3,605,650)	(4,515,926)	(4,851,856)
Net loans	239,246,315	254,626,135	252,626,055

Premises and equipment	7,086,482	7,176,779	7,253,295
Other real estate owned	1,401,765	982,550	-
Other assets	7,712,008	6,078,017	3,922,126
Total assets	$ 325,957,731	$ 301,830,897	$ 301,846,993

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non interest bearing	$ 28,209,453	$ 32,157,834	$ 32,947,981
NOW, MMDA and Savings	200,078,571	150,555,986	145,215,201
Time deposits	54,144,566	77,349,304	82,032,185
Total deposits	282,432,590	260,063,124	260,195,367
Long term debt	18,248,000	18,248,000	18,248,000
Accrued expenses and other liabilities	1,076,515	779,007	1,136,125
Total liabilities	301,757,105	279,090,131	279,579,492

SHAREHOLDERS' EQUITY
Common stock, no par value, 3,000,000 shares
authorized; issued and outstanding 2,177,850
2,122,244, and 2,122,244	23,346,298	21,813,998	21,790,199
Undivided profits	723,755	896,962	341,759
Accumulated other comprehensive income (loss)	130,573	29,806	135,543
Total shareholders' equity	24,200,626	22,740,766	22,267,501
Total liabilities and shareholders' equity	$ 325,957,731	$ 301,830,897	$ 301,846,993

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



		Three months ended		Nine months ended
		September 30,		September 30,
Interest income:		2010	2009	2010	2009
	Interest and fees on loans	$ 3,280,471	$ 3,328,715	$ 9,983,893	$ 9,972,308
	Securities:
	U. S. government agencies and corp.	87,792	63,969	243,183	244,744
	State, County, Municipal bonds	13,832	8,282	40,841	19,747
	Other securities	19,532	22,378	60,308	51,996
	Federal funds sold	18,211	681	20,463	681
	Deposits with other banks	56,858	17,443	129,978	25,337
	Total interest income	3,476,696	3,441,468	10,478,666	10,314,813

Interest expense:
	Deposits	1,071,601	1,075,872	3,061,325	3,488,083
	Fed funds purchased	118	-	750	3,369
	Borrowings	114,288	116,122	330,859	375,869
	Total interest expense	1,186,007	1,191,994	3,392,934	3,867,321
Net interest income		2,290,689	2,249,474	7,085,732	6,447,492
Provision for loan losses		-	250,000	1,100,000	990,000
Net interest income after provision		2,290,689	1,999,474	5,985,732	5,457,492
for loan losses

Non interest income:
	Service charges on deposit accounts	81,398	93,065	223,002	252,058
	Gain on sale of loans	214,149	101,502	416,409	435,660
	Gain on sale of other assets	-	-	-	-
	Gain (loss) on sale of OREO	(6,599)	(5,151)	(126,680)	(4,797)
	Other	93,235	60,210	232,259	160,514
	Total non interest income	382,183	249,626	744,990	843,435

Non interest expense:
	Salaries and benefits	1,008,891	873,361	2,843,127	2,679,338
	Occupancy and equipment, net	159,364	173,296	476,658	511,359
	Marketing	14,193	31,955	44,877	61,122
	Data processing	115,864	111,362	355,992	335,863
	Supplies, postage and printing	11,760	18,506	52,161	49,527
	Other	442,156	471,241	1,608,595	1,548,241
	Total non interest expense	1,752,228	1,679,721	5,381,410	5,185,450
Income before income taxes		920,644	569,379	1,349,312	1,115,477
Income taxes		329,070	233,600	474,770	467,100
Net income		$ 591,574	$ 335,779	$ 874,542	$ 648,377


Basic earnings per common share*		$ 0.28	$ 0.16	$ 0.41	$ 0.31
Diluted earnings per common share*		$ 0.27	$ 0.16	$ 0.41	$ 0.30
Average common shares outstanding*		2,134,226	2,103,508	2,123,575	2,103,419
Average diluted shares outstanding*		2,167,259	2,147,947	2,158,576	2,148,876

* 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	2010	2009	2009	Years ended December 31
(dollars in thousands except per share data)	3rd Qtr	2nd Qtr	1st Qtr	4th Qtr	3rd Qtr	2009	2008
EARNINGS
Net interest income	$ 2,291	$ 2,390	$ 2,405	$ 2,417	$ 2,250	$ 8,865	$ 8,810
Provision for loan losses	$ -	$ 925	$ 175	$ 225	$ 250	$ 1,215	$ 1,712
Non interest income	$ 382	$ 212	$ 151	$ 370	$ 250	$ 1,214	$ 2,022
Non interest expense	$ 1,752	$ 1,958	$ 1,671	$ 1,686	$ 1,680	$ 6,872	$ 6,900
Income taxes	$ 329	$ (110)	$ 256	$ 321	$ 234	$ 788	$ 923
Net income	$ 592	$ (171)	$ 454	$ 555	$ 336	$ 1,204	$ 1,297
Basic earnings per share*	$ 0.28	$ (0.08)	$ 0.21	$ 0.26	$ 0.16	$ 0.57	$ 0.62
Diluted earnings per share*	$ 0.27	$ (0.08)	$ 0.21	$ 0.26	$ 0.16	$ 0.56	$ 0.61
Average shares outstanding*	2,134,226	2,121,633	2,114,926	2,104,730	2,103,508	2,103,752	2,078,935
Average diluted shares outstanding*	2,167,259	2,164,919	2,143,610	2,125,215	2,147,947	2,141,407	2,122,652

PERFORMANCE RATIOS
Return on average assets	0.72%	-0.22%	0.61%	0.75%	0.46%	0.41%	0.45%
Return on average common equity	9.87%	-2.90%	7.94%	9.71%	6.00%	5.42%	6.23%
Net interest margin (fully tax equivalent)	3.10%	3.29%	3.40%	3.37%	3.20%	3.21%	3.20%
Efficiency ratio	65.56%	75.25%	65.39%	60.49%	67.21%	68.18%	63.70%

CAPITAL
Average equity to average assets	7.34%	7.71%	7.73%	7.69%	7.67%	7.63%	7.24%
Book value per share*	$ 11.11	$ 10.84	$ 10.89	$ 10.71	$ 10.49	$ 10.71	$ 10.18
Cash dividend per share	-	-	-	-	-	-	-

ASSET QUALITY
Gross loan charge offs	$ 235	$ 1,708	$ 173	$ 563	$ 32	$ 1,208	$ 509
Net loan charge offs	$ 168	$ 1,682	$ 160	$ 561	$ (91)	$ 1,050	$ 478
Net loan charge offs to average loans	0.07%	0.67%	0.06%	0.22%	-0.04%	0.41%	0.19%
Allowance for loan losses	$ 3,606	$ 3,774	$ 4,531	$ 4,516	$ 4,852	$ 4,516	$ 4,351
Allowance for losses to total loans	1.48%	1.53%	1.78%	1.74%	1.88%	1.74%	1.65%
Nonperforming loans	$ 3,819	$ 3,982	$ 4,478	$ 6,104	$ 6,595	$ 6,104	$ 5,328
Other real estate and repossessed assets	$ 1,402	$ 1,558	$ 1,435	$ 983	$ -	$ 983	$ 269
Nonperforming assets to total assets	1.60%	1.78%	1.92%	2.35%	2.18%	2.35%	1.90%

END OF PERIOD BALANCES
Loans	$ 242,852	$ 246,292	$ 254,237	$ 259,142	$ 257,478	$ 259,142	$ 263,454
Total earning assets	$ 308,900	$ 295,047	$ 294,355	$ 288,990	$ 290,427	$ 288,990	$ 277,175
Total assets	$ 325,958	$ 311,733	$ 307,873	$ 301,831	$ 301,847	$ 301,831	$ 295,004
Deposits	$ 282,433	$ 269,311	$ 265,397	$ 260,063	$ 260,195	$ 260,063	$ 254,282
Shareholders' equity	$ 24,201	$ 23,223	$ 23,323	$ 22,741	$ 22,268	$ 22,741	$ 21,402

AVERAGE BALANCES
Loans	$ 240,291	$ 251,607	$ 254,095	$ 256,100	$ 252,797	$ 256,303	$ 255,114
Total earning assets	$ 305,938	$ 291,759	$ 286,562	$ 284,815	$ 278,858	$ 276,267	$ 275,325
Total assets	$ 323,812	$ 306,586	$ 300,183	$ 294,918	$ 289,537	$ 291,074	$ 287,266
Deposits	$ 281,019	$ 263,832	$ 257,921	$ 252,905	$ 247,764	$ 249,359	$ 248,185
Shareholders' equity	$ 23,782	$ 23,643	$ 23,203	$ 22,691	$ 22,208	$ 22,221	$ 20,812

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