EVANSVILLE, Ind., Feb. 8 /PRNewswire-FirstCall/ --
-- 2009 net income of $1,203,580 represents $0.59 earnings per diluted share. -- Fourth quarter net income equals $555,203, a 9.7 percent annualized return on equity. -- Net interest margin improves 17 basis points to 3.37 percent during the quarter. -- Fourth quarter revenue increases 25.1 percent over the same quarter last year. -- Non interest bearing deposits increase $6,196,597 or 23.9 percent over 2008.
American Community Bancorp, Inc. (the "Company") (BULLETIN BOARD: ACBP) , the holding company for Bank of Evansville, today reported consolidated net income for the 2009 fiscal year of $1,203,580, compared to 2008 net income of $1,297,253. Diluted earnings per share, adjusted for the 5 percent stock dividend declared in April 2009, were $0.59 per share for 2009 and $0.64 per share for 2008. In 2008, the Company sold its merchant processing line of business for an after tax gain of approximately $394,403. Adjusting for this one-time gain, 2009 annual net income was $300,730, or 33.3 percent higher than core net income for 2008.
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For the quarter ended December 31, 2009, net income of $555,203 was recorded versus a net loss of $180,872 for the same quarter in 2008. Diluted earnings per share for the fourth quarter of 2009 were $0.27 per share, compared to $(0.09) per share for the fourth quarter of 2008. The increase in earnings was primarily due to an increase in net interest income of $335,866 and a $645,000 reduction in provision for loan loss expense relative to the same quarter last year. The net interest income increase is attributable to an improved net interest margin of 3.37 percent for the fourth quarter of 2009, compared to 2.95 percent for the fourth quarter of 2008.
Michael S. Sutton, President and Chief Executive Officer, commented, "2009 was full of challenges in the banking industry, and we were not immune to them. Yet, we managed through these obstacles to finish with a very strong fourth quarter and year. Given the environment, I am pleased with our 33.3 percent increase in "core" earnings. In addition, a number of positive trends occurred in our performance this past year: 1) a 23.9 percent increase in our non interest bearing deposits provided a low-cost source of funding and a 27.1 percent increase in service charge revenue; 2) the interest rate environment drove residential mortgage refinancing activity, contributing to a 78.7 percent increase in gains on the sale of mortgage loans; and 3) a consistent quarterly increase in net interest income and an improved net interest margin were achieved primarily through deposit repricing opportunities."
Annual Performance
Total revenues, consisting of net interest income and non interest income, were $10,078,649 for 2009, decreasing $753,718 or 7.0 percent, compared to 2008. Net interest income for 2009 was $8,865,124, which was $54,661 or 0.6 percent higher than the $8,810,463 reported for 2008. Non interest income for 2009 decreased $808,379 or 40.0 percent less than 2008. Excluding revenue related to the Company's merchant processing line of business that was sold during 2008, non interest income increased by $465,207, or 62.2 percent over 2008. The change was primarily from a year over year increase of $235,206 in gains on the sale of residential mortgage loans, and a one-time gain on sale of investment securities of $114,750.
Non interest expense for 2009 was $6,871,699, compared to $6,899,769 for 2008. Salaries and benefits, the largest component of non interest expense, increased $143,565 in 2009, a 4.1 percent increase over 2008. Additionally, the Company expensed $133,215 on a pre-tax basis in 2009 to record its portion of the FDIC's special deposit insurance assessment levied on all FDIC insured financial institutions.
Quarterly Performance
Total revenues were $2,787,718 for the fourth quarter of 2009, reflecting an increase of $559,094, or 25.1 percent, compared to the same period in 2008. Net interest income in the fourth quarter of 2009 was $2,417,629, increasing $335,866, or 16.1 percent, compared to the same quarter of 2008. The net interest margin for the fourth quarter of 2009 was 3.37 percent compared to 2.95 percent for the same quarter last year. The improvement in the margin is attributable to a slight increase in loan yields and a significant reduction in interest expense on deposits driven by non interest bearing deposit growth and pricing discipline on maturities of certificates of deposit. Non interest expense for the fourth quarter of 2009 was $1,686,245, increasing 2.7 percent from $1,641,796 in the same period a year ago.
Balance Sheet
Total assets at December 31, 2009, were $301,830,897, compared to $295,004,193 at the same date a year ago, an increase of $6,826,704 or 2.3 percent. Loans decreased $4,312,150 or 1.6 percent and were $259,142,061 at December 31, 2009, compared to $263,454,211 at December 31, 2008. Total deposits at December 31, 2009, were $260,063,124, reflecting an increase of $5,781,216, or 2.3 percent over the corresponding total a year ago. Non interest bearing deposits, the Company's low cost source of funding, increased by $6,196,597, or 23.9 percent during 2009 and totaled $32,157,834 at the end of the year.
Asset Quality
Net loan charge-offs were $1,049,773 during 2009 compared to $478,414 during 2008. Non performing assets at December 31, 2009, were $7,086,574 or 2.35 percent of total assets compared to $5,596,354 or 1.90 percent of total assets at the end of 2008. The allowance for loan losses was $4,515,926 at December 31, 2009, or 1.74 percent of total outstanding loans compared to 1.65 percent at the end of 2008. As a percentage of non performing loans, the allowance for loan loss was 74.0 percent and 81.7 percent for 2009 and 2008, respectively. Provision for loan loss expense for 2009 was $1,215,000, which equaled approximately 116 percent of net charge-offs. For 2008, provision expense was $1,712,345, or 358 percent of net charge-offs.
Capital
The Company remains "well capitalized" with a Tier 1 leverage ratio of 10.3 percent, a Tier 1 risk based capital ratio of 11.8 percent, and a total risk based capital ratio of 13.2 percent at December 31, 2009. The regulatory minimum ratios to be considered "well capitalized" are 5.0 percent for the Tier 1 leverage ratio, 6.0 percent for the Tier 1 risk based capital ratio, and 10.0 percent for the total risk based capital ratio.
Mr. Sutton concluded, "We are extremely proud of our quarterly and annual performance in light of unprecedented challenges in our national and local economy. While many financial institutions reported losses in 2009, our Company remains profitable as evidenced by our return on equity of 5.4 percent for the year and 9.7 percent for the fourth quarter. We continue to focus on reducing our risk profile and improving our net interest margin given that asset quality and net interest income are significant contributors to achieving strong, consistent earnings for our shareholders."
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, CEO John M. Schenk, CFO Phone: (812) 962-2265 AMERICAN COMMUNITY BANCORP, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) December 31, December 31, 2009 2008 ---- ---- ASSETS Cash and due from banks $3,070,354 $10,566,834 Interest bearing balances with banks 11,827,957 67,729 Federal funds sold 3,256,000 - ------------ ------------ Total cash and cash equivalents 18,154,311 10,634,563 Securities available for sale, at fair value 13,448,255 12,540,576 Nonmarketable equity securities 1,364,850 1,269,450 Loans, net of deferred fees 259,142,061 263,454,211 Allowance for loan losses (4,515,926) (4,350,699) ------------ ------------ Net loans 254,626,135 259,103,512 Premises and equipment 7,176,779 7,498,177 Other real estate owned 982,550 268,600 Other assets 6,078,017 3,689,315 ------------ ------------ Total assets $301,830,897 $295,004,193 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Deposits Non interest bearing $32,157,834 $25,961,237 NOW, MMDA and Savings 150,555,986 94,865,418 Time deposits 77,349,304 133,455,253 ------------ ------------ Total deposits 260,063,124 254,281,908 Long term debt 18,248,000 18,248,000 Accrued expenses and other liabilities 779,007 1,072,135 ------------ ------------ Total liabilities 279,090,131 273,602,043 SHAREHOLDERS' EQUITY Common stock, no par value, 3,000,000 shares authorized; issued and outstanding 2,021,335 and 2,001,462 21,813,998 20,556,955 Undivided profits 896,962 750,568 Accumulated other comprehensive income 29,806 94,627 ------------ ------------ Total shareholders' equity 22,740,766 21,402,150 ------------ ------------ Total liabilities and shareholders' equity $301,830,897 $295,004,193 ============ ============ AMERICAN COMMUNITY BANCORP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, except Year Ended December 31, 2008) Three months ended December 31, Interest income: 2009 2008 ---------- ---------- Interest and fees on loans $3,434,372 $3,618,975 Securities: U. S. government agencies and corporations 58,970 118,961 State, County, Municipal bonds 11,551 - Other securities 20,369 18,156 Federal funds sold 179 12,487 Deposits with other banks 23,333 183 Total interest income 3,548,774 3,768,762 Interest expense: Deposits 1,020,609 1,515,519 Fed funds purchased - - Borrowings 110,536 171,480 Total interest expense 1,131,145 1,686,999 ---------- ---------- Net interest income 2,417,629 2,081,763 Provision for loan losses 225,000 870,000 Net interest income after provision 2,192,629 1,211,763 for loan losses Non interest income: Service charges on deposit accounts 93,737 73,537 Gain on sale of loans 98,295 68,192 Gain on sale of other assets - - Gain (loss) on sale of other real estate - (56,650) Gain (loss) on sale of investment securities 114,772 - Merchant processing fees - 2,347 Other 63,285 59,435 Total non interest income 370,089 146,861 Non interest expense: Salaries and benefits 935,871 860,447 Occupancy and equipment, net 169,249 170,173 Marketing 13,908 25,417 Data processing 117,509 115,696 Supplies, postage and printing 20,430 28,985 Legal and professional 88,487 189,131 Merchant processing expense - 187 FDIC insurance assessment 141,747 67,450 Other 199,044 184,310 Total non interest expense 1,686,245 1,641,796 ---------- ---------- Income before income taxes 876,473 (283,172) Income taxes 321,270 (102,300) ---------- ---------- Net income $555,203 $(180,872) ========== ========== Basic earnings per common share* $0.28 $(0.09) Diluted earnings per common share* $0.27 $(0.09) Average common shares outstanding* 2,004,505 1,994,440 Average diluted shares outstanding* 2,024,015 2,018,683 Years ended December 31, Interest income: 2009 2008 ----------- ----------- Interest and fees on loans $13,406,680 $15,524,650 Securities: U. S. government agencies and corporations 303,714 415,873 State, County, Municipal bonds 31,298 - Other securities 72,365 69,413 Federal funds sold 860 199,667 Deposits with other banks 48,671 640 Total interest income 13,863,588 16,210,243 Interest expense: Deposits 4,508,692 6,728,974 Fed funds purchased 3,369 11,571 Borrowings 486,403 659,235 Total interest expense 4,998,464 7,399,780 ----------- ----------- Net interest income 8,865,124 8,810,463 Provision for loan losses 1,215,000 1,712,345 ----------- ----------- Net interest income after provision 7,650,124 7,098,118 for loan losses Non interest income: Service charges on deposit accounts 345,795 272,034 Gain on sale of loans 533,956 298,750 Gain on sale of other assets - 675,000 Gain (loss) on sale of other real estate (4,797) (73,486) Gain (loss) on sale of investment securities 114,750 - Merchant processing fees - 598,586 Other 223,821 251,020 Total non interest income 1,213,525 2,021,904 Non interest expense: Salaries and benefits 3,615,209 3,471,644 Occupancy and equipment, net 680,608 624,660 Marketing 75,030 83,126 Data processing 453,372 426,776 Supplies, postage and printing 69,957 79,011 Legal and professional 512,907 469,423 Merchant processing expense - 531,916 FDIC insurance assessment 682,634 260,800 Other 781,982 952,413 Total non interest expense 6,871,699 6,899,769 ----------- ----------- Income before income taxes 1,991,950 2,220,253 Income taxes 788,370 923,000 Net income $1,203,580 $1,297,253 ============ ============ Basic earnings per common share* $0.60 $0.66 Diluted earnings per common share* $0.59 $0.64 Average common shares outstanding* 2,003,574 1,979,940 Average diluted shares outstanding* 2,039,436 2,023,638 * Adjusted for 5 percent stock dividends paid on June 6, 2008 and June 11, 2009 AMERICAN COMMUNITY BANCORP, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) Years ended (dollars in thousands 2009 2008 December 31 except per share data) 4th Qtr 4th Qtr 2009 2008 ------- ------- ---- ---- EARNINGS Net interest income $2,417 $2,082 $8,865 $8,810 Provision for loan losses $225 $870 $1,215 $1,712 Non interest income $370 $147 $1,214 $2,022 Non interest expense $1,686 $1,642 $6,872 $6,900 Income taxes $321 $(102) $788 $923 Net income $555 $(181) $1,204 $1,297 Basic earnings per share* $0.28 $(0.09) $0.60 $0.66 Diluted earnings per share* $0.27 $(0.09) $0.59 $0.64 Average shares outstanding* 2,004,505 1,994,440 2,003,574 1,979,939 Average diluted shares outstanding* 2,024,015 2,018,682 2,039,436 2,021,574 PERFORMANCE RATIOS Return on average assets 0.75% -0.25% 0.41% 0.45% Return on average common equity 9.71% -3.32% 5.42% 6.23% Net interest margin (fully tax equivalent) 3.37% 2.95% 3.21% 3.20% Efficiency ratio 60.49% 73.70% 68.18% 63.70% Full time equivalent employees 48 48 49 48 CAPITAL Average equity to average assets 7.69% 7.39% 7.63% 7.24% Tier 1 leverage capital ratio 10.27% 9.70% 10.19% 9.70% Tier 1 risk based capital ratio 11.80% 11.26% 11.50% 11.26% Total risk based capital ratio 13.23% 12.87% 13.00% 12.87% Book value per share* $11.25 $10.69 $11.25 $10.69 Cash dividend per share ASSET QUALITY Gross loan charge offs $563 $260 $1,208 $509 Net loan charge offs $561 $247 $1,050 $478 Net loan charge offs to average loans 0.22% 0.09% 0.41% 0.19% Allowance for loan losses $4,516 $4,351 $4,516 $4,351 Allowance for losses to total loans 1.74% 1.65% 1.74% 1.65% Nonperforming loans $6,104 $5,328 $6,104 $5,328 Other real estate and repossessed assets $983 $269 $983 $269 Nonperforming assets to total assets 2.35% 1.90% 2.35% 1.90% END OF PERIOD BALANCES Loans $259,142 $263,454 $259,142 $263,454 Total earning assets $288,990 $277,175 $288,990 $277,175 Total assets $301,831 $295,004 $301,831 $295,004 Deposits $260,063 $254,282 $260,063 $254,282 Shareholders' equity $22,741 $21,402 $22,741 $21,402 AVERAGE BALANCES Loans $256,100 $260,959 $256,303 $255,114 Total earning assets $284,815 $280,354 $276,267 $275,325 Total assets $294,918 $292,931 $291,074 $287,266 Deposits $252,905 $251,768 $249,359 $248,185 Shareholders' equity $22,691 $21,657 $22,221 $20,812 * Adjusted for 5 percent stock dividends paid June 6, 2008 and June 11, 2009
American Community Bancorp, Inc.
CONTACT: Michael S. Sutton, CEO or John M. Schenk, CFO of American
Community Bancorp, Inc., +1-812-962-2265
Web Site: http://www.bankevansville.com/
