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
    (dollars in thousands except
     per share data)                2nd Qtr    1st Qtr   4th Qtr    3rd Qtr
                                    -------    -------   -------    -------
    EARNINGS
      Net interest income             $2,390     $2,405     $2,417     $2,250
      Provision for loan losses         $925       $175       $225       $250
      Non interest income               $212       $151       $370       $250
      Non interest expense            $1,958     $1,671     $1,686     $1,680
      Income taxes                     $(110)      $256       $321       $234
      Net income                       $(171)      $454       $555       $336
      Basic earnings per share*       $(0.08)     $0.21      $0.26      $0.16
      Diluted earnings per share*     $(0.08)     $0.21      $0.26      $0.16
      Average shares outstanding*  2,121,633  2,114,926  2,104,730  2,103,508
      Average diluted shares
       outstanding*                2,164,919  2,143,610  2,125,215  2,147,947

    PERFORMANCE RATIOS
      Return on average assets         -0.22%      0.61%      0.75%      0.46%
      Return on average common
       equity                          -2.90%      7.94%      9.71%      6.00%
      Net interest margin (fully
       tax equivalent)                  3.29%      3.40%      3.37%      3.20%
      Efficiency ratio                 75.25%     65.39%     60.49%     67.21%
      Full time equivalent
       employees                          49         48         48         49

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

    ASSET QUALITY
      Gross loan charge offs          $1,708       $173       $563        $32
      Net loan charge offs            $1,682       $160       $561       $(91)
      Net loan charge offs to
       average loans                    0.67%      0.06%      0.22%     -0.04%
      Allowance for loan losses       $3,774     $4,531     $4,516     $4,852
      Allowance for losses to
       total loans                      1.53%      1.78%      1.74%      1.88%
      Nonperforming loans             $3,982     $4,478     $6,104     $6,595
      Other real estate and
       repossessed assets             $1,558     $1,435       $983         $-
      Nonperforming assets to
       total assets                     1.78%      1.92%      2.35%      2.18%

    END OF PERIOD BALANCES
      Loans                         $246,292   $254,237   $259,142   $257,478
      Total earning assets          $295,047   $294,355   $288,990   $290,427
      Total assets                  $311,733   $307,873   $301,831   $301,847
      Deposits                      $269,311   $265,397   $260,063   $260,195
      Shareholders' equity           $23,223    $23,323    $22,741    $22,268

    AVERAGE BALANCES
      Loans                         $251,607   $254,095   $256,100   $252,797
      Total earning assets          $291,759   $286,562   $284,815   $278,858
      Total assets                  $306,586   $300,183   $294,918   $289,537
      Deposits                      $263,832   $257,921   $252,905   $247,764
      Shareholders' equity           $23,643    $23,203    $22,691    $22,208

                                                   Years ended
                                        2009       December 31
    (dollars in thousands except
     per share data)               2nd Qtr         2009       2008
                                   -------         ----       ----
    EARNINGS
      Net interest income             $2,182     $8,865     $8,810
      Provision for loan losses         $530     $1,215     $1,712
      Non interest income               $314     $1,214     $2,022
      Non interest expense            $1,937     $6,872     $6,900
      Income taxes                       $20       $788       $923
      Net income                          $9     $1,204     $1,297
      Basic earnings per share*           $-      $0.57      $0.62
      Diluted earnings per share*         $-      $0.56      $0.61
      Average shares outstanding*  2,103,693  2,103,752  2,078,935
      Average diluted shares
       outstanding*                2,166,346  2,141,407  2,122,652

    PERFORMANCE RATIOS
      Return on average assets          0.01%      0.41%      0.45%
      Return on average common
       equity                           0.16%      5.42%      6.23%
      Net interest margin (fully
       tax equivalent)                  3.24%      3.21%      3.20%
      Efficiency ratio                 77.61%     68.18%     63.70%
      Full time equivalent
       employees                          50         49         48

    CAPITAL
      Average equity to average
       assets                           7.71%      7.63%      7.24%
      Tier 1 leverage capital
       ratio                           10.09%     10.27%      9.70%
      Tier 1 risk based capital
       ratio                           11.45%     11.81%     11.26%
      Total risk based capital
       ratio                           13.00%     13.23%     12.87%
      Book value per share*           $10.27     $10.71     $10.18
      Cash dividend per share              -          -          -

    ASSET QUALITY
      Gross loan charge offs            $450     $1,208       $509
      Net loan charge offs              $438     $1,050       $478
      Net loan charge offs to
       average loans                    0.17%      0.41%      0.19%
      Allowance for loan losses       $4,511     $4,516     $4,351
      Allowance for losses to
       total loans                      1.76%      1.74%      1.65%
      Nonperforming loans             $6,376     $6,104     $5,328
      Other real estate and
       repossessed assets                $80       $983       $269
      Nonperforming assets to
       total assets                     2.18%      2.35%      1.90%

    END OF PERIOD BALANCES
      Loans                         $255,695   $259,142   $263,454
      Total earning assets          $266,797   $288,990   $277,175
      Total assets                  $295,892   $301,831   $295,004
      Deposits                      $254,188   $260,063   $254,282
      Shareholders' equity           $21,808    $22,741    $21,402

    AVERAGE BALANCES
      Loans                         $257,429   $256,303   $255,114
      Total earning assets          $269,875   $276,267   $275,325
      Total assets                  $287,793   $291,074   $287,266
      Deposits                      $245,551   $249,359   $248,185
      Shareholders' equity           $22,182    $22,221    $20,812

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

    Contact:        Michael S. Sutton
                    John M. Schenk

    Phone:          (812) 962-2265

SOURCE American Community Bancorp, Inc.