American Community Bancorp Reports 49 Percent Increase in Earnings

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Apr 27, 2010, 06:30 ET

EVANSVILLE, Ind., April 27 /PRNewswire-FirstCall/ --

Net income of $454,092 represents a 49.4 percent increase over first quarter 2009.
Net interest income increased $389,359, or 19.3 percent, over the same quarter last year.
Net interest margin equals 3.40 percent for the quarter compared to 2.98 percent for the same period last year.
The company remains "well capitalized" with a Tier 1 leverage ratio of 10.3 percent.

American Community Bancorp, Inc. ("the Company") (OTC Bulletin Board: ACBP), the holding company for Bank of Evansville, today announced first quarter results for 2010. The Company generated net income for the first quarter of $454,092, compared to $303,963 for the same quarter a year ago, an increase of $150,129, or 49.4 percent. Diluted earnings per share were $0.22 for 2010 and $0.15 for 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20070424/CLTU114LOGO)

Michael S. Sutton, President and Chief Executive Officer, commented, "Given the continued stress in our economy, we are pleased to report a 49 percent increase in quarterly earnings. The growth in net interest income was the primary driver in our operating results. Pricing discipline within our loan portfolio, as well as an increase in core deposits, contributed to a 42 basis point increase in our net interest margin during the first quarter of 2010 versus 2009."

Operating Performance

Total revenues, consisting of net interest income and non interest income, were $2,555,842 for the first quarter of 2010, an increase of $259,782 or 11.3 percent, compared to $2,296,060 for the first quarter of 2009.

Net interest income for the first quarter was $2,405,305, reflecting an increase of $389,359 or 19.3 percent over the same period a year ago. The increase in net interest income for the first quarter of 2010 over the same quarter in the prior year was attributable primarily to an improvement in the Company's net interest margin to 3.40 percent, compared to 2.98 percent last year.

Non interest income was $150,537 for the first quarter of 2010. For the same quarter in 2009, non interest income totaled $280,114. This decrease was driven by an $88,006 reduction of gains on the sale of residential real estate loans compared to last year and $62,655 in losses on the sale of other real estate owned.

Non interest expense for the first quarter of 2010 was $1,671,250, which was $102,553 or 6.5 percent higher than the first quarter of 2009. Salaries and benefits, the largest component of non interest expense, for the current quarter increased $36,251 over the prior year quarter. Additionally, expenses related to other real estate owned and loan collection expenses increased $18,713 from the same quarter last year.

Balance Sheet

Total assets at March 31, 2010, were $307,873,360, compared to $294,242,920 at the same date a year ago, an increase of $13,630,440 or 4.6 percent. Loans decreased $3,577,264 or 1.4 percent and were $254,237,196 at March 31, 2010, compared to $257,814,460 at March 31, 2009. Total deposits at March 31, 2010, were $265,397,305, reflecting an increase of $12,148,680, or 4.8 percent over the corresponding total a year ago.

Asset Quality

The provision for loan losses for the first quarter was $175,000 in 2010 and $210,000 in 2009. Net charge-offs were $159,989 for the current quarter, or 0.26 percent of loans on an annualized basis. The ratio of the allowance for loan losses to total loans was 1.78 percent at March 31, 2010, and 1.71 percent at March 31, 2009. As a percentage of non performing loans, the allowance for loan loss was 101.2 percent and 88.3 percent as of March 31, 2010 and 2009, respectively. Non performing assets at March 31, 2010, were $5,912,856 or 1.92 percent of total assets, compared to $5,114,071 or 1.74 percent of total assets at the same date a year ago.

Capital

The Company remains "well capitalized" with a Tier 1 leverage ratio of 10.3 percent, a Tier 1 risk based capital ratio of 12.0 percent, and a total risk based capital ratio of 13.4 percent at March 31, 2010.

Mr. Sutton concluded, "We recognize the economic environment continues to be challenging and likely will be for some time. Our focus remains on consistently delivering strong core earnings and reducing risk within our loan portfolio. We have continued to increase our Allowance for Loan Losses, providing a buffer for our already strong capital base. As a result of our ability to generate and preserve capital during these troubled economic times, the Company will be well positioned to take advantage of future opportunities in a more stable economy."

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.

Contact:	Michael S. Sutton
	John M. Schenk

Phone:	(812) 962-2265


AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED BALANCE SHEETS


	(Unaudited)		(Unaudited)
	March 31,	December 31,	March 31,
	2010	2009	2009

ASSETS
Cash and due from banks	$ 3,557,365	$ 3,070,354	$ 14,261,993
Interest bearing balances with banks	15,312,599	11,827,957	2,567,263
Federal funds sold	5,726,000	3,256,000	-
Total cash and cash equivalents	24,595,964	18,154,311	16,829,256
Securities available for sale, at fair value	17,744,750	13,448,255	11,677,936
Nonmarketable equity securities	1,364,850	1,364,850	1,269,450

Loans, net of deferred fees	254,237,196	259,142,061	257,814,460
Allowance for loan losses	(4,530,921)	(4,515,926)	(4,419,678)
Net loans	249,706,275	254,626,135	253,394,782

Premises and equipment	7,194,744	7,176,779	7,417,862
Other real estate owned	1,435,000	982,550	109,381
Other assets	5,831,777	6,078,017	3,544,253
Total assets	$307,873,360	$ 301,830,897	$294,242,920

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non interest bearing	$ 29,712,649	$ 32,157,834	$ 31,938,610
NOW, MMDA and Savings	164,591,939	150,555,986	115,052,405
Time deposits	71,092,717	77,349,304	106,257,610
Total deposits	265,397,305	260,063,124	253,248,625
Long term debt	18,248,000	18,248,000	18,248,000
Accrued expenses and other liabilities	905,468	779,007	915,066
Total liabilities	284,550,773	279,090,131	272,411,691

SHAREHOLDERS' EQUITY
Common stock, no par value, 3,000,000 shares
authorized; issued and outstanding 2,039,977
2,021,185, and 2,011,101	21,953,589	21,813,998	20,688,070
Undivided profits	1,350,779	896,962	1,054,531
Accumulated other comprehensive income (loss)	18,219	29,806	88,628
Total shareholders' equity	23,322,587	22,740,766	21,831,229
Total liabilities and shareholders' equity	$307,873,360	$ 301,830,897	$294,242,920

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



		Three months ended
		March 31,
Interest income:		2010	2009
	Interest and fees on loans	$ 3,356,951	$ 3,320,276
	Securities:
	U. S. government agencies and corporations	68,573	102,423
	State, County, Municipal bonds	13,178	1,632
	Other securities	20,442	15,075
	Federal funds sold	188	-
	Deposits with other banks	29,264	3,808
	Total interest income	3,488,596	3,443,214

Interest expense:
	Deposits	975,907	1,293,456
	Federal funds purchased	292	246
	Borrowings	107,092	133,566
	Total interest expense	1,083,291	1,427,268
Net interest income		2,405,305	2,015,946
Provision for loan losses		175,000	210,000
Net interest income after provision		2,230,305	1,805,946
for loan losses

Non interest income:
	Service charges on deposit accounts	69,721	64,734
	Gain on sale of loans	80,716	168,722
	Gain (loss) on sale of OREO	(62,655)	354
	Other	62,755	46,304
	Total non interest income	150,537	280,114

Non interest expense:
	Salaries and benefits	908,714	872,463
	Occupancy and equipment, net	162,468	174,309
	Marketing	10,481	5,841
	Data processing	115,621	110,407
	Supplies, postage and printing	16,499	12,386
	Legal and professional	143,068	138,559
	Other	314,399	254,732
	Total non interest expense	1,671,250	1,568,697
Income before income taxes		709,592	517,363
Income taxes		255,500	213,400
Net income		$ 454,092	$ 303,963


Basic earnings per common share*		$ 0.23	$ 0.15
Diluted earnings per common share*		$ 0.22	$ 0.15
Average common shares outstanding*		2,016,088	2,002,922
Average diluted shares outstanding*		2,043,406	2,030,806


* Adjusted for 5 percent stock dividends paid on June 11, 2009 and June 6, 2008


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

	2010	2009	2009	2009	2009	Years ended December 31
(dollars in thousands except per share data)	1st Qtr	4th Qtr	3rd Qtr	2nd Qtr	1st Qtr	2009	2008
EARNINGS
Net interest income	$ 2,405	$ 2,417	$ 2,250	$ 2,182	$ 2,016	$ 8,865	$ 8,810
Provision for loan losses	$ 175	$ 225	$ 250	$ 530	$ 210	$ 1,215	$ 1,712
Non interest income	$ 151	$ 370	$ 250	$ 314	$ 280	$ 1,214	$ 2,022
Non interest expense	$ 1,671	$ 1,686	$ 1,680	$ 1,937	$ 1,569	$ 6,872	$ 6,900
Income taxes	$ 256	$ 321	$ 234	$ 20	$ 213	$ 788	$ 923
Net income	$ 454	$ 555	$ 336	$ 9	$ 304	$ 1,204	$ 1,297
Basic earnings per share*	$ 0.28	$ 0.28	$ 0.17	$ -	$ 0.15	$ 0.60	$ 0.66
Diluted earnings per share*	$ 0.27	$ 0.27	$ 0.16	$ -	$ 0.15	$ 0.59	$ 0.64
Average shares outstanding*	2,016,088	2,004,505	2,003,341	2,003,518	2,002,922	2,003,574	1,979,939
Average diluted shares outstanding*	2,043,406	2,024,015	2,045,664	2,063,187	2,030,806	2,039,436	2,021,574

PERFORMANCE RATIOS
Return on average assets	0.61%	0.75%	0.46%	0.01%	0.42%	0.41%	0.45%
Return on average common equity	7.94%	9.71%	6.00%	0.16%	5.65%	5.42%	6.23%
Net interest margin (fully tax equivalent)	3.40%	3.37%	3.20%	3.24%	2.98%	3.21%	3.20%
Efficiency ratio	65.39%	60.49%	67.21%	77.61%	68.32%	68.18%	63.70%
Full time equivalent employees	48	48	49	50	49	49	48

CAPITAL
Average equity to average assets	7.73%	7.69%	7.67%	7.71%	7.47%	7.63%	7.24%
Tier 1 leverage capital ratio	10.29%	10.27%	10.19%	10.09%	9.93%	10.19%	9.70%
Tier 1 risk based capital ratio	12.00%	11.80%	11.66%	11.45%	11.35%	11.50%	11.26%
Total risk based capital ratio	13.40%	13.23%	13.16%	13.00%	12.90%	13.00%	12.87%
Book value per share*	$ 11.43	$ 11.25	$ 11.02	$ 10.79	$ 10.80	$ 11.25	$ 10.69
Cash dividend per share	-	-	-	-	-	-	-

ASSET QUALITY
Gross loan charge offs	$ 173	$ 563	$ 32	$ 450	$ 162	$ 1,208	$ 509
Net loan charge offs	$ 160	$ 561	$ (91)	$ 438	$ 141	$ 1,050	$ 478
Net loan charge offs to average loans	0.06%	0.22%	-0.04%	0.17%	0.05%	0.41%	0.19%
Allowance for loan losses	$ 4,531	$ 4,516	$ 4,852	$ 4,511	$ 4,420	$ 4,516	$ 4,351
Allowance for losses to total loans	1.78%	1.74%	1.88%	1.76%	1.71%	1.74%	1.65%
Nonperforming loans	$ 4,478	$ 6,104	$ 6,595	$ 6,376	$ 5,005	$ 6,104	$ 5,328
Other real estate and repossessed assets	$ 1,435	$ 983	$ -	$ 80	$ 109	$ 983	$ 269
Nonperforming assets to total assets	1.92%	2.35%	2.18%	2.18%	1.74%	2.35%	1.90%

END OF PERIOD BALANCES
Loans	$ 254,237	$ 259,142	$ 257,478	$ 255,695	$ 257,814	$ 259,142	$ 263,454
Total earning assets	$ 294,355	$ 288,990	$ 290,427	$ 266,797	$ 272,786	$ 288,990	$ 277,175
Total assets	$ 307,873	$ 301,831	$ 301,847	$ 295,892	$ 294,243	$ 301,831	$ 295,004
Deposits	$ 265,397	$ 260,063	$ 260,195	$ 254,188	$ 253,249	$ 260,063	$ 254,282
Shareholders' equity	$ 23,323	$ 22,741	$ 22,268	$ 21,808	$ 21,831	$ 22,741	$ 21,402

AVERAGE BALANCES
Loans	$ 254,095	$ 256,100	$ 252,797	$ 257,429	$ 258,888	$ 256,303	$ 255,114
Total earning assets	$ 286,562	$ 284,815	$ 278,858	$ 269,875	$ 274,509	$ 276,267	$ 275,325
Total assets	$ 300,183	$ 294,918	$ 289,537	$ 287,793	$ 292,042	$ 291,074	$ 287,266
Deposits	$ 257,921	$ 252,905	$ 247,764	$ 245,551	$ 251,223	$ 249,359	$ 248,185
Shareholders' equity	$ 23,203	$ 22,691	$ 22,208	$ 22,182	$ 21,803	$ 22,221	$ 20,812

* Adjusted for 5 percent stock dividends paid June 11, 2009 and June 6, 2008