EVANSVILLE, Ind., April 23 /PRNewswire-FirstCall/ -- American Community Bancorp, Inc. ("the Company") (OTCBulletinBoard:ACBP), the holding company for Bank of Evansville, today announced first quarter results for 2008. The Company generated net income for the first quarter of $361,585 compared to $501,724 for the same quarter a year ago, a decrease of $140,139, or 27.9 percent. Diluted earnings per share were $0.20 for 2008, compared to $0.27 for 2007, a 25.9 percent decrease of $0.07 per share.
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Michael S. Sutton, President and Chief Executive Officer, commented, "We are extremely pleased with our first quarter results. Although net income is lower compared to last year, the decrease is attributable to two specific areas. First, the Company's provision for loan losses for the quarter, on a pre-tax basis, was $184,345 higher than last year. This increase was driven by loan growth and not by deterioration in the quality of our loan portfolio, as evidenced by net charge-offs of only $2,416 during the quarter. Secondly, the first quarter of 2008 results contain personnel and occupancy expenses related to our new branch, which opened November 13, 2007."
Total revenues, consisting of net interest income and non interest income, were $2,465,044 for the first quarter of 2008, an increase of $231,466 or 10.4 percent, compared to $2,233,578 for the first quarter of 2007. Net interest income for the first quarter was $2,069,358, reflecting an increase of $175,522 or 9.3 percent over the same period a year ago. The increase in net interest income for the first quarter of 2008 over the same quarter in the prior year was attributable to an increase in average loans of $29,868,129, offset by a decrease in net interest margin resulting from competitive loan and deposit environments, and the short-term impact of the 2.0 percent reduction of the Federal Reserve's key inter-bank borrowing rate during the first quarter. Non interest income for the first quarter of 2008 increased by $55,944 or 16.5 percent over the same quarter last year, primarily due to increased merchant processing revenue, gains on sale of loans, and debit card interchange income.
Non interest expense for the first quarter of 2008 was $1,619,814, which was $275,260 or 20.5 percent higher than the first quarter of 2007. Salaries and benefits, the largest component of non interest expense, for the current quarter increased $137,996 or 18.6 percent over the prior year quarter. The increase in salaries and benefits includes the additional personnel costs related to our new branch. The new branch also impacted occupancy and equipment expense during the first quarter of 2008, which was $166,445, an increase of $44,693 or 36.7 percent over the same quarter last year.
The provision for loan losses for the first quarter was $230,345 in 2008 and $46,000 in 2007. The increased provision was directly related to the Company's loan growth of $17,793,944 during the first quarter of 2008. Net charge-offs were $2,416 for the current quarter, compared to $0 for the first quarter of 2007. The ratio of the allowance for loan losses to total loans was 1.30 percent at March 31, 2008, and 1.44 percent at March 31, 2007.
Total assets at March 31, 2008, were $301,744,193, increasing $49,649,386 or 19.7 percent from $252,094,807 at the same date a year ago. Loans increased $40,747,598 or 18.8 percent and reached $257,186,070 at March 31, 2008, compared to $216,438,472 at March 31, 2007. Deposits at March 31, 2008, were $262,672,084, increasing $39,291,292 compared to $223,380,792 at March 31, 2007.
Mr. Sutton concluded, "In spite of a challenging banking environment and a softening of the economy, we are encouraged by the growth of our loan portfolio. Of equal importance is our increase in core deposits. Year over year balances and accounts increased 12.6 percent and 14.0 percent, respectively. Contributing to those increases was the successful opening of our new Grant Hills Banking Center at Highway 41 North and Boonville-New Harmony Road. This office has added convenience to our client base and allowed us to expand our footprint in the growing North Side of Vanderburgh County. Asset quality continues to be the key driver in measuring our performance. We will always have a disciplined approach in underwriting our credits. The minimal net charge-offs for the quarter confirm our commitment to sound credit quality."
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,
2008 2007 2007
ASSETS
Cash and due from banks $5,639,898 $5,541,754 $3,244,253
Interest bearing balances with
banks 168,195 36,324 28,769
Federal funds sold 21,627,000 4,458,000 15,412,000
Total cash and cash equivalents 27,435,093 10,036,078 18,685,022
Securities available for sale,
at fair value 8,542,271 9,202,756 9,834,624
Nonmarketable equity securities 1,194,150 1,168,150 1,060,450
Loans, net of deferred fees 257,186,070 239,392,126 216,438,472
Allowance for loan losses (3,344,696) (3,116,767) (3,109,600)
Net loans 253,841,374 236,275,359 213,328,872
Premises and equipment 7,100,516 7,201,642 5,980,001
Other assets 3,630,789 3,944,700 3,205,838
Total assets $301,744,193 $267,828,685 $252,094,807
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits
Non interest bearing $36,286,017 $18,356,944 $18,536,225
NOW, MMDA and Savings 109,335,488 106,895,642 115,212,522
Time deposits 117,050,579 113,930,361 89,632,045
Total deposits 262,672,084 239,182,947 223,380,792
Long term debt 18,248,000 8,248,000 8,248,000
Accrued expenses and other
liabilities 762,371 870,544 1,078,440
Total liabilities 281,682,455 248,301,491 232,707,232
SHAREHOLDERS' EQUITY
Common stock, no par value,
3,000,000 shares authorized;
issued and outstanding 1,789,096,
1,781,039, and 1,781,039 19,259,454 19,145,765 17,635,757
Undivided profits 781,494 419,910 1,881,046
Accumulated other comprehensive
income (loss) 20,790 (38,481) (129,228)
Total shareholders' equity 20,061,738 19,527,194 19,387,575
Total liabilities and
shareholders' equity $301,744,193 $267,828,685 $252,094,807
AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
March 31,
Interest income: 2008 2007
Interest and fees on loans $4,017,673 $4,105,337
Securities
U.S. government agencies and corporations 82,643 97,582
Other 16,087 14,938
Federal funds sold 132,042 140,001
Other 192 280
Total interest income 4,248,637 4,358,138
Interest expense:
Deposits 2,011,583 2,316,262
Federal funds purchased 84 -
Borrowings 167,612 148,040
Total interest expense 2,179,279 2,464,302
Net interest income 2,069,358 1,893,836
Provision for loan losses 230,345 46,000
Net interest income after provision
for loan losses 1,839,013 1,847,836
Non interest income:
Service charges on deposit accounts 52,164 61,638
Gain on sale of loans 84,922 77,425
Merchant processing fees 189,870 153,041
Other 68,730 47,638
Total non interest income 395,686 339,742
Non interest expense:
Salaries and benefits 878,160 740,164
Occupancy and equipment, net 166,445 121,752
Marketing 25,317 12,280
Data processing 100,853 90,545
Supplies, postage and printing 7,278 12,884
Legal and professional 83,076 56,876
Merchant processing expense 169,957 151,318
Other 188,728 158,735
Total non interest expense 1,619,814 1,344,554
Income before income taxes 614,885 843,024
Income taxes 253,300 341,300
Net income $361,585 $501,724
Basic earnings per common share $0.20 $0.28
Diluted earnings per common share $0.20 $0.27
Average common shares outstanding 1,780,766 1,774,075
Average diluted shares outstanding 1,832,684 1,861,552
* Adjusted for 5 percent stock dividends paid on June 9, 2006 and
June 8, 2007
AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
2008 2007 2007 2007
(dollars in thousands except 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr
per share data)
EARNINGS
Net interest income $2,069 $2,197 $2,107 $1,952
Provision for loan losses $230 $2,449 $75 $37
Non interest income $396 $400 $358 $402
Non interest expense $1,620 $1,792 $1,429 $1,568
Income taxes $253 $(637) $391 $310
Net income $362 $(1,007) $570 $439
Basic earnings per share* $0.20 $(0.57) $0.32 $0.25
Diluted earnings per share* $0.20 $(0.54) $0.31 $0.24
Average shares outstanding* 1,780,766 1,776,845 1,776,845 1,776,907
Average diluted shares
outstanding* 1,832,684 1,860,762 1,865,609 1,867,285
PERFORMANCE RATIOS
Return on average assets 0.52% -1.53% 0.90% 0.71%
Return on average common
equity 7.28% -19.23% 11.17% 8.97%
Net interest margin (fully
tax equivalent) 3.12% 3.47% 3.45% 3.27%
Efficiency ratio 65.71% 68.99% 57.98% 66.60%
Full time equivalent employees 46 46 46 43
CAPITAL
Average equity to average
assets 7.17% 7.94% 8.08% 7.88%
Tier 1 leverage capital
ratio 9.59% 9.97% 10.94% 10.69%
Tier 1 risk based capital
ratio 10.57% 11.17% 12.09% 12.25%
Total risk based capital
ratio 12.35% 13.05% 13.84% 14.12%
Book value per share* $11.25 $10.96 $11.51 $11.14
Cash dividend per share - - - -
ASSET QUALITY
Gross loan charge offs $13 $2,535 $19 $-
Net loan charge offs $2 $2,535 $19 $-
Net loan charge offs to
average loans 0.00% 1.08% 0.01% -
Allowance for loan losses $3,345 $3,117 $3,203 $3,147
Allowance for losses to
total loans 1.30% 1.30% 1.40% 1.44%
Nonperforming loans $3,696 $2,243 $347 $136
Other real estate and
repossessed assets $- $- $- $-
Nonperforming loans to total
assets 1.22% 0.84% 0.13% 0.05%
END OF PERIOD BALANCES
Loans $257,186 $239,392 $228,762 $218,554
Total earning assets $288,683 $254,321 $249,001 $245,746
Total assets $301,744 $267,829 $260,245 $255,619
Deposits $262,672 $239,183 $230,664 $222,854
Shareholders' equity $20,062 $19,527 $20,455 $19,789
AVERAGE BALANCES
Loans $241,061 $235,708 $223,727 $217,776
Total earning assets $266,820 $251,198 $240,434 $239,208
Total assets $278,666 $261,713 $250,576 $249,139
Deposits $244,982 $231,622 $221,106 $220,231
Shareholders' equity $19,970 $20,775 $20,242 $19,644
* Adjusted for 5 percent stock dividends paid June 9, 2006 and
June 8, 2007
AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
2007 Years ended December 31,
(dollars in thousands except per 1st Qtr 2007 2006
share data)
EARNINGS
Net interest income $1,894 $8,150 $7,348
Provision for loan losses $46 $2,607 $397
Non interest income $340 $1,499 $1,459
Non interest expense $1,345 $6,133 $5,472
Income taxes $341 $405 $1,202
Net income $502 $504 $1,736
Basic earnings per share* $0.28 $0.28 $0.98
Diluted earnings per share* $0.26 $0.27 $0.94
Average shares outstanding* 1,774,075 1,776,178 1,766,133
Average diluted shares outstanding* 1,861,553 1,863,812 1,856,138
PERFORMANCE RATIOS
Return on average assets 0.84% 0.20% 0.77%
Return on average common equity 10.61% 2.52% 9.74%
Net interest margin (fully tax
equivalent) 3.29% 3.38% 3.42%
Efficiency ratio 60.20% 63.56% 62.13%
Full time equivalent employees 42 46 42
CAPITAL
Average equity to average assets 7.89% 7.95% 7.91%
Tier 1 leverage capital ratio 10.71% 9.97% 10.81%
Tier 1 risk based capital ratio 11.99% 11.17% 11.96%
Total risk based capital ratio 13.93% 13.05% 14.01%
Book value per share* $10.91 $10.96 $10.58
Cash dividend per share - - -
ASSET QUALITY
Gross loan charge offs $- $2,554 $55
Net loan charge offs $- $2,554 $55
Net loan charge offs to average loans - 1.15% 0.03%
Allowance for loan losses $3,110 $3,117 $3,064
Allowance for losses to total loans 1.44% 1.30% 1.44%
Nonperforming loans $136 $2,243 $21
Other real estate and repossessed
assets $- $- $-
Nonperforming loans to total assets 0.05% 0.84% 0.01%
END OF PERIOD BALANCES
Loans $216,438 $239,392 $212,712
Total earning assets $242,988 $254,321 $232,380
Total assets $252,095 $267,829 $242,759
Deposits $223,381 $239,183 $214,813
Shareholders' equity $19,388 $19,527 $18,757
AVERAGE BALANCES
Loans $211,193 $222,114 $194,640
Total earning assets $233,207 $241,036 $214,938
Total assets $243,024 $251,136 $225,379
Deposits $214,595 $221,913 $198,491
Shareholders' equity $19,175 $19,960 $17,830
* Adjusted for 5 percent stock dividends paid June 9, 2006 and
June 8, 2007
Contact: Michael S. Sutton
John M. Schenk
Phone: (812) 962-2265
Source: American Community Bancorp, Inc.