EVANSVILLE, Ind., April 28 /PRNewswire-FirstCall/ -- American Community Bancorp, Inc. ("the Company") (BULLETIN BOARD: ACBP) , the holding company for Bank of Evansville, today announced first quarter results for 2009. The Company generated net income for the first quarter of $303,963, compared to $361,585 for the same quarter a year ago, a decrease of $57,622, or 15.9 percent. Diluted earnings per share were $0.16 for 2009 and $0.19 for 2008.
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Total revenues, consisting of net interest income and non interest income, were $2,296,060 for the first quarter of 2009, a decrease of $168,984 or 6.9 percent, compared to $2,465,044 for the first quarter of 2008. Net interest income for the first quarter was $2,015,946, reflecting a decrease of $53,412 or 2.6 percent over the same period a year ago. The decrease in net interest income for the first quarter of 2009 over the same quarter in the prior year was attributable to the historically low interest rate environment that currently exists, a reduction in loan fee income of $32,082 from the same quarter last year, and an increase in non performing loans.
Non interest income was $280,114 for the first quarter of 2009. For the same quarter in 2008, non interest income totaled $395,686, of which $189,870 was attributable to merchant processing revenues. The Company sold its merchant processing line of business in the third quarter of 2008. Excluding the merchant processing fees from 2008, non interest income increased by $74,298, or 36.1 percent over the prior year, primarily driven by increased originations by the Company's residential mortgage banking line of business and the corresponding gains on the sale of those loans.
Non interest expense for the first quarter of 2009 was $1,568,697, which was $51,117 or 3.2 percent lower than the first quarter of 2008. Salaries and benefits, the largest component of non interest expense, for the current quarter decreased $5,697 or 0.7 percent over the prior year quarter. Additionally, expenses related to the previously mentioned merchant processing line of business were $169,957 in the first quarter of last year compared to $0 in 2009.
The provision for loan losses for the first quarter was $210,000 in 2009 and $230,345 in 2008. Net charge-offs were $141,020 for the current quarter, or 0.22 percent of loans on an annualized basis. The ratio of the allowance for loan losses to total loans was 1.71 percent at March 31, 2009, and 1.30 percent at March 31, 2008.
Total assets at March 31, 2009, were $294,242,920, decreasing $7,501,273 or 2.5 percent from $301,744,193 at the same date a year ago. Loans increased $628,390 or 0.2 percent and totaled $257,814,460 at March 31, 2009, compared to $257,186,070 at March 31, 2008. Deposits at March 31, 2009, were $253,248,625, compared to $262,672,084 at March 31, 2008. Both total assets and total deposits were elevated by approximately $15,000,000 at the end of the first quarter of 2008 due to large deposits by certain business banking clients that were temporary in nature. Average assets for the quarter ending March 31, 2009, were $292,041,874, compared to $278,666,165 as of March 31, 2008, an increase of 4.8 percent.
Michael S. Sutton, President and Chief Executive Officer, commented, "We are extremely proud of our performance in the face of the intense economic and industry challenges we faced this past quarter. Primary drivers for our reduced earnings were a lower net interest margin, increased FDIC insurance assessments, and collection costs related to non performing loans. While the quarter was challenging, I wanted to mention a few of the many positives:
-- Our mortgage banking fees doubled quarter over quarter; -- Core deposits increased $17.3 million, or 8.7 percent, since year end; and -- Our loan loss reserve strengthened to 1.71 percent of total loans. We believe this provisioning will provide an important buffer to our earnings and capital base as we navigate through this difficult environment."
Mr. Sutton concluded, "We continue to be 'well-capitalized' by all regulatory benchmarks. In today's banking world, capital and strong loan loss reserves are essential. I believe we meet this test. We remain committed to a conservative approach in reviewing our capital and reserves. In these turbulent times, this will serve us well. On March 25, we announced our decision not to participate in the Treasury Capital Purchase Program (CPP). The Board of Directors and senior management spent a considerable amount of time reviewing the pros and cons of the CPP. In the end, we felt our decision to decline was in the best interest of our shareholders. Managing capital will always be a high priority for our Company."
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) March 31, December 31, March 31, 2009 2008 2008 ASSETS Cash and due from banks $14,261,993 $10,566,834 $5,639,898 Interest bearing balances with banks 2,567,263 67,729 168,195 Federal funds sold - - 21,627,000 Total cash and cash equivalents 16,829,256 10,634,563 27,435,093 Securities available for sale, at fair value 11,677,936 12,540,576 8,542,271 Nonmarketable equity securities 1,269,450 1,269,450 1,194,150 Loans, net of deferred fees 257,814,460 263,454,211 257,186,070 Allowance for loan losses (4,419,678) (4,350,699) (3,344,696) Net loans 253,394,782 259,103,512 253,841,374 Premises and equipment 7,417,862 7,498,177 7,100,516 Other real estate owned 109,381 268,600 - Other assets 3,544,253 3,689,315 3,630,789 Total assets $294,242,920 $295,004,193 $301,744,193 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits Non interest bearing $31,938,610 $25,961,237 $36,286,017 NOW, MMDA and Savings 115,052,405 94,865,418 109,335,488 Time deposits 106,257,610 133,455,253 117,050,579 Total deposits 253,248,625 254,281,908 262,672,084 Long term debt 18,248,000 18,248,000 18,248,000 Accrued expenses and other liabilities 915,066 1,072,135 762,371 Total liabilities 272,411,691 273,602,043 281,682,455 SHAREHOLDERS' EQUITY Common stock, no par value, 3,000,000 shares authorized; issued and outstanding 1,925,335 1,906,155, and 1,878,550 20,688,070 20,556,955 19,259,454 Undivided profits 1,054,531 750,568 781,494 Accumulated other comprehensive income (loss) 88,628 94,627 20,790 Total shareholders' equity 21,831,229 21,402,150 20,061,738 Total liabilities and shareholders' equity $294,242,920 $295,004,193 $301,744,193 AMERICAN COMMUNITY BANCORP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended March 31, Interest income: 2009 2008 Interest and fees on loans $3,320,276 $4,017,673 Securities: U. S. government agencies and corporations 102,423 82,643 State, County, Municipal bonds 1,632 Other securities 15,075 16,087 Federal funds sold - 132,042 Deposits with other banks 3,808 192 Total interest income 3,443,214 4,248,637 Interest expense: Deposits 1,293,456 2,011,583 Federal funds purchased 246 84 Borrowings 133,566 167,612 Total interest expense 1,427,268 2,179,279 Net interest income 2,015,946 2,069,358 Provision for loan losses 210,000 230,345 Net interest income after provision 1,805,946 1,839,013 for loan losses Non interest income: Service charges on deposit accounts 64,734 52,164 Gain on sale of loans 168,722 84,922 Merchant processing fees - 189,870 Other 46,658 68,730 Total non interest income 280,114 395,686 Non interest expense: Salaries and benefits 872,463 878,160 Occupancy and equipment, net 174,309 166,445 Marketing 5,841 25,317 Data processing 110,407 100,853 Supplies, postage and printing 12,386 7,278 Legal and professional 138,559 83,076 Merchant processing expense - 169,957 Other 254,732 188,728 Total non interest expense 1,568,697 1,619,814 Income before income taxes 517,363 614,885 Income taxes 213,400 253,300 Net income $303,963 $361,585 Basic earnings per common share* $0.16 $0.19 Diluted earnings per common share* $0.16 $0.19 Average common shares outstanding* 1,907,545 1,869,804 Average diluted shares outstanding* 1,934,101 1,924,318 * Adjusted for 5 percent stock dividends paid on June 6, 2008 and June 8, 2007 AMERICAN COMMUNITY BANCORP, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) 2009 2008 2008 2008 2008 (dollars in thousands except per share data) 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr ------- ------- ------- ------- ------- EARNINGS Net interest income $2,016 $2,082 $2,320 $2,339 $2,069 Provision for loan losses $210 $870 $345 $267 $230 Non interest income $280 $147 $1,085 $395 $396 Non interest expense $1,569 $1,642 $1,965 $1,673 $1,620 Income taxes $213 $(102) $451 $321 $253 Net income $304 $(181) $644 $473 $362 Basic earnings per share* $0.16 $(0.10) $0.34 $0.25 $0.19 Diluted earnings per share* $0.16 $(0.09) $0.34 $0.24 $0.19 Average shares outstanding* 1,907,545 1,899,467 1,899,467 1,881,064 1,869,804 Average diluted shares outstanding* 1,934,101 1,917,015 1,918,374 1,941,719 1,924,318 PERFORMANCE RATIOS Return on average assets 0.42% -0.25% 0.87% 0.67% 0.52% Return on average common equity 5.65% -3.32% 12.13% 9.27% 7.28% Net interest margin (fully tax equivalent) 2.98% 2.95% 3.28% 3.45% 3.12% Efficiency ratio 68.32% 88.17% 57.72% 61.19% 65.71% Full time equivalent employees 49 48 48 49 48 CAPITAL Average equity to average assets 7.47% 7.39% 7.20% 7.21% 7.17% Tier 1 leverage capital ratio 9.93% 9.70% 9.76% 9.75% 9.59% Tier 1 risk based capital ratio 11.35% 11.26% 11.37% 10.93% 10.57% Total risk based capital ratio 12.90% 12.87% 12.96% 12.61% 12.35% Book value per share* $11.34 $11.23 $11.27 $10.86 $10.71 Cash dividend per share - - - - - ASSET QUALITY Gross loan charge offs $162 $260 $119 $117 $13 Net loan charge offs $141 $247 $115 $114 $2 Net loan charge offs to average loans 0.05% 0.09% 0.04% 0.04% 0.00% Allowance for loan losses $4,420 $4,351 $3,728 $3,497 $3,345 Allowance for losses to total loans 1.71% 1.65% 1.42% 1.34% 1.30% Nonperforming loans $5,005 $5,328 $2,095 $2,147 $3,696 Other real estate and repossessed assets $109 $269 $604 $909 $- Nonperforming assets to total assets 1.74% 1.90% 0.92% 1.05% 1.22% END OF PERIOD BALANCES Loans $257,814 $263,454 $262,098 $261,323 $257,186 Total earning assets $272,786 $277,175 $283,448 $279,398 $288,683 Total assets $294,243 $295,004 $292,240 $291,745 $301,744 Deposits $253,249 $254,282 $251,438 $252,044 $262,672 Shareholders' equity $21,831 $21,402 $21,474 $20,695 $20,062 AVERAGE BALANCES Loans $258,888 $260,959 $261,598 $256,828 $241,061 Total earning assets $274,509 $280,354 $281,152 $272,993 $266,820 Total assets $292,042 $292,931 $293,197 $284,314 $278,666 Deposits $251,223 $251,768 $252,297 $243,747 $244,982 Shareholders' equity $21,803 $21,657 $21,106 $20,513 $19,970 Years ended December 31 (dollars in thousands except per share data) 2008 2007 EARNINGS Net interest income $8,810 $8,150 Provision for loan losses $1,712 $2,607 Non interest income $2,022 $1,499 Non interest expense $6,900 $6,133 Income taxes $923 $405 Net income $1,297 $504 Basic earnings per share* $0.69 $0.27 Diluted earnings per share* $0.67 $0.26 Average shares outstanding* 1,885,657 1,864,986 Average diluted shares outstanding* 1,925,309 1,957,002 PERFORMANCE RATIOS Return on average assets 0.45% 0.20% Return on average common equity 6.23% 2.52% Net interest margin (fully tax equivalent) 3.20% 3.38% Efficiency ratio 63.70% 63.56% Full time equivalent employees 48 46 CAPITAL Average equity to average assets 7.24% 7.95% Tier 1 leverage capital ratio 9.70% 9.97% Tier 1 risk based capital ratio 11.26% 11.17% Total risk based capital ratio 12.87% 13.05% Book value per share* $11.23 $10.44 Cash dividend per share - - ASSET QUALITY Gross loan charge offs $509 $2,554 Net loan charge offs $478 $2,554 Net loan charge offs to average loans 0.19% 1.15% Allowance for loan losses $4,351 $3,117 Allowance for losses to total loans 1.65% 1.30% Nonperforming loans $5,328 $2,243 Other real estate and repossessed assets $269 $- Nonperforming assets to total assets 1.90% 0.84% END OF PERIOD BALANCES Loans $263,454 $239,392 Total earning assets $277,175 $254,321 Total assets $295,004 $267,829 Deposits $254,282 $239,183 Shareholders' equity $21,402 $19,527 AVERAGE BALANCES Loans $255,114 $222,114 Total earning assets $275,325 $241,036 Total assets $287,266 $251,136 Deposits $248,185 $221,913 Shareholders' equity $20,812 $19,960 Contact: Michael S. Sutton John M. Schenk (812) 962-2265
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American Community Bancorp, Inc.
CONTACT: Michael S. Sutton or John M. Schenk, both of American Community
Bancorp, Inc., +1-812-962-2265
Web Site: http://www.bankevansville.com/
