American Community Bancorp, Inc. (the "Company")
(BULLETIN BOARD: ACBP) , the holding company for Bank of Evansville, today reported consolidated net income for the third quarter of 2009 of $335,779, a decrease of 47.8 percent over the same quarter in 2008. During the third quarter of 2008, the Company sold its merchant processing line of business for a pre-tax gain of $675,000. Adjusted for the one-time gain in 2008, net income was $90,484, or 36.9 percent higher than the same quarter a year ago. Diluted earnings per share were $0.16 and $0.32 for the third quarter of 2009 and 2008, respectively.
For the first nine months of 2009, consolidated net income was $648,377 compared to net income of $1,478,125 for the first nine months of 2008. Net income for 2009 includes $133,215 in pre-tax expense related to the FDIC's special deposit insurance assessment levied on all FDIC-insured financial institutions. Diluted earnings per share for the first nine months of 2009 and 2008 were $0.32 and $0.73, respectively. Exclusive of the merchant processing line of business, diluted earnings per share for the first nine months of 2008 would have been $0.53.
Michael S. Sutton, President and Chief Executive Officer, commented, "We are pleased to report the increase in core earnings for the quarter. For the third straight quarter we have increased our net interest income. The significant growth of our non-interest bearing deposits has been a major driver in the improvement of our net interest income. The growth in our core deposit base contributed to a 27.0 percent increase in service charge revenue, compared to the first nine months of 2008. Our mortgage banking operation continues to actively participate in the residential refinancing market with an 89.0 percent increase in fees year over year."
Total assets at September 30, 2009, were $301,846,993, compared to $292,239,571 at the same date a year ago, an increase of $9,607,422, or 3.3 percent. Loans declined $4,620,053, or 1.8 percent, and were $257,477,911 at September 30, 2009, compared to $262,097,964 reported at September 30, 2008. Total deposits at September 30, 2009, were $260,195,367, reflecting an increase of $8,757,468, or 3.5 percent, over the corresponding total a year ago. Non-interest bearing deposits, the Company's lowest cost source of funding, increased $10,318,301, or 45.6 percent, over the same date a year ago.
Total revenues, consisting of net interest income and non interest income, were $2,499,100 for the third quarter of 2009, which was $905,844, or 26.6 percent, lower than the same period last year. Excluding 2008 merchant processing related revenue, total revenues for the third quarter were only $29,490, or 1.2 percent, less than the same quarter last year. Net interest income was $2,249,474 for the third quarter of 2009, decreasing $70,787, or 3.1 percent, over the same quarter of 2008. Non interest income of $249,626 for the third quarter of 2009 was $835,057, or 77.0 percent, lower compared to the same period in 2008. Excluding third quarter 2008 merchant processing related revenue, non interest income increased $41,297 over the same quarter last year, reflecting an increase of 19.8 percent. The increase is primarily from higher gains on the sale of loans resulting from residential mortgage refinancing activity.
Total revenues for the first nine months of 2009 were $7,290,927, decreasing $1,312,816, or 15.3 percent, compared to the same period in the prior year. Net interest income for the first nine months of 2009 was $6,447,492, which was $281,208, or 4.2 percent, lower than the $6,728,700 reported for the first nine months of 2008. Non interest income for the first nine months of 2009 decreased $1,031,608, or 55.0 percent. Year over year comparisons for total revenues and non interest income are similarly impacted to the quarter over quarter comparisons as a result of the sale of the merchant processing portfolio in 2008.
Non interest expense for the third quarter of 2009 was $1,679,721 compared to $1,965,499 for the third quarter of 2008. Adjusted for third quarter 2008 expenses related to the Company's merchant processing line of business, non interest expense decreased $101,056, or 5.7 percent, compared to the same period a year ago.
During the third quarter of 2009, the Company had net loan recoveries of $90,500 due to gross loan charge offs of only $32,407 and recoveries of $122,907. During the quarter we received a $100,000 recovery on a loan relationship that was charged-off in the second quarter of 2009. Although net charge offs were negative, the Company recorded $250,000 in provision for loan losses during the quarter. Year to date, provision expense equals $990,000 which totals more than two times net charge offs of $488,843. The ratio of the allowance for loan losses to total loans was 1.88 percent at September 30, 2009, and 1.42 percent at September 30, 2008.
"We remain focused on our asset quality during these troubling economic times," concluded Mr. Sutton. "We strengthened our allowance for loan losses to 1.88 percent of total loans at the end of the third quarter as part of our strategy to protect our capital base. American Community Bancorp continues to maintain its 'well capitalized' position, the highest regulatory rating. Our total risk-based capital ratio of 13.2 percent for the Holding Company remains significantly above the 10.0 percent requirement for a well-capitalized institution."
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)
September 30, December 31, September 30,
2009 2008 2008
------------- ------------ ------------
ASSETS
Cash and due from banks $4,871,730 $10,566,834 $1,485,759
Interest bearing balances
with banks 15,050,703 67,729 52,835
Federal funds sold 4,946,000 - 7,464,000
------------- ------------ ------------
Total cash and cash
equivalents 24,868,433 10,634,563 9,002,594
Securities available for
sale, at fair value 11,907,634 12,540,576 12,569,296
Nonmarketable equity
securities 1,269,450 1,269,450 1,269,450
Loans, net of deferred fees 257,477,911 263,454,211 262,097,964
Allowance for loan losses (4,851,856) (4,350,699) (3,727,679)
------------- ------------ ------------
Net loans 252,626,055 259,103,512 258,370,285
Premises and equipment 7,253,295 7,498,177 6,981,976
Other real estate owned - 268,600 603,780
Other assets 3,922,126 3,689,315 3,442,190
------------- ------------ ------------
Total assets $301,846,993 $295,004,193 $292,239,571
============= ============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non interest bearing $32,947,981 $25,961,237 $22,629,680
NOW, MMDA and Savings 145,215,201 94,865,418 93,399,990
Time deposits 82,032,185 133,455,253 135,408,229
----------- ----------- -----------
Total deposits 260,195,367 254,281,908 251,437,899
Long term debt 18,248,000 18,248,000 18,248,000
Accrued expenses and other
liabilities 1,136,125 1,072,135 1,080,117
----------- ----------- -----------
Total liabilities 279,579,492 273,602,043 270,766,016
SHAREHOLDERS' EQUITY
Common stock, no par value,
3,000,000 shares authorized;
issued and outstanding
2,021,335 2,001,462,
and 2,001,462 21,790,199 20,556,955 20,538,808
Undivided profits 341,759 750,568 931,439
Accumulated other
comprehensive income (loss) 135,543 94,627 3,308
Total shareholders' equity 22,267,501 21,402,150 21,473,555
----------- ----------- -----------
Total liabilities
and shareholders'
equity $301,846,993 $295,004,193 $292,239,571
============ ============ ============
AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
September 30,
Interest income: 2009 2008
---------- ----------
Interest and fees on loans $3,328,715 $3,931,316
Securities:
U. S. government agencies and corp. 63,969 120,830
State, County, Municipal bonds 8,282 -
Other securities 22,378 16,763
Federal funds sold 681 27,604
Deposits with other banks 17,443 120
---------- ----------
Total interest income 3,441,468 4,096,633
Interest expense:
Deposits 1,075,872 1,610,108
Fed funds purchased - 5,321
Borrowings 116,122 160,943
---------- ----------
Total interest expense 1,191,994 1,776,372
---------- ----------
Net interest income 2,249,474 2,320,261
Provision for loan losses 250,000 345,000
---------- ----------
Net interest income after provision
for loan losses 1,999,474 1,975,261
Non interest income:
Service charges on deposit accounts 93,065 83,022
Gain on sale of loans 101,502 81,062
Gain on sale of other assets - 675,000
Gain (loss) on sale of other real estate (5,151) (16,836)
Merchant processing fees - 201,354
Other 60,210 61,081
---------- ----------
Total non interest income 249,626 1,084,683
Non interest expense:
Salaries and benefits 873,361 858,621
Occupancy and equipment, net 173,296 182,243
Marketing 31,955 24,730
Data processing 111,362 105,383
Supplies, postage and printing 18,506 25,337
Legal and professional 155,671 103,829
Merchant processing expense - 184,722
Other 315,570 480,634
---------- ----------
Total non interest expense 1,679,721 1,965,499
---------- ----------
Income before income taxes 569,379 1,094,445
Income taxes 233,600 450,900
---------- ----------
Net income $335,779 $643,545
========== ==========
Basic earnings per common share* $0.17 $0.32
Diluted earnings per common share* $0.16 $0.32
Average common shares outstanding* 2,003,341 1,994,440
Average diluted shares outstanding* 2,045,664 2,014,292
Nine months ended
September 30,
Interest income: 2009 2008
---------- -----------
Interest and fees on loans $9,972,308 $11,905,675
Securities:
U. S. government agencies and corp. 244,744 296,912
State, County, Municipal bonds 19,747 -
Other securities 51,996 51,257
Federal funds sold 681 187,180
Deposits with other banks 25,337 457
---------- -----------
Total interest income 10,314,813 12,441,481
Interest expense:
Deposits 3,488,083 5,213,455
Fed funds purchased 3,369 11,571
Borrowings 375,869 487,755
---------- -----------
Total interest expense 3,867,321 5,712,781
---------- -----------
Net interest income 6,447,492 6,728,700
Provision for loan losses 990,000 842,345
---------- -----------
Net interest income after provision
for loan losses 5,457,492 5,886,355
Non interest income:
Service charges on deposit accounts 252,058 198,497
Gain on sale of loans 435,660 230,558
Gain on sale of other assets - 675,000
Gain (loss) on sale of other real estate (4,797) (16,836)
Merchant processing fees - 596,239
Other 160,514 191,585
---------- -----------
Total non interest income 843,435 1,875,043
Non interest expense:
Salaries and benefits 2,679,338 2,611,197
Occupancy and equipment, net 511,359 454,487
Marketing 61,122 57,709
Data processing 335,863 311,080
Supplies, postage and printing 49,527 50,026
Legal and professional 424,420 280,292
Merchant processing expense - 531,729
Other 1,123,821 961,453
---------- -----------
Total non interest expense 5,185,450 5,257,973
---------- -----------
Income before income taxes 1,115,477 2,503,425
Income taxes 467,100 1,025,300
---------- -----------
Net income $648,377 $1,478,125
========== ===========
Basic earnings per common share* $0.32 $0.75
Diluted earnings per common share* $0.32 $0.73
Average common shares outstanding* 2,003,257 1,975,072
Average diluted shares outstanding* 2,046,549 2,023,071
* Adjusted for 5 percent stock dividends paid on June 6, 2008
and June 11, 2009
AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
2009 2009 2009
3rd Qtr 2nd Qtr 1st Qtr
------- ------- -------
(dollars in thousands except
per share data)
EARNINGS
Net interest income $2,250 $2,182 $2,016
Provision for loan losses $250 $530 $210
Non interest income $250 $314 $280
Non interest expense $1,680 $1,937 $1,569
Income taxes $234 $20 $213
Net income $336 $9 $304
Basic earnings per share* $0.17 $- $0.15
Diluted earnings per share* $0.16 $- $0.15
Average shares outstanding* 2,003,341 2,003,518 2,002,922
Average diluted shares outstanding* 2,045,664 2,063,187 2,030,806
PERFORMANCE RATIOS
Return on average assets 0.46% 0.01% 0.42%
Return on average common equity 6.00% 0.16% 5.65%
Net interest margin (fully tax
equivalent) 3.20% 3.24% 2.98%
Efficiency ratio 67.21% 77.61% 68.32%
Full time equivalent employees 49 50 49
CAPITAL
Average equity to average assets 7.67% 7.71% 7.47%
Tier 1 leverage capital ratio 10.19% 10.09% 9.93%
Tier 1 risk based capital ratio 11.66% 11.45% 11.35%
Total risk based capital ratio 13.16% 13.00% 12.90%
Book value per share* $11.02 $10.79 $10.80
Cash dividend per share - - -
ASSET QUALITY
Gross loan charge offs $32 $450 $162
Net loan charge offs $(91) $438 $141
Net loan charge offs to average loans -0.04% 0.17% 0.05%
Allowance for loan losses $4,852 $4,511 $4,420
Allowance for losses to total loans 1.88% 1.76% 1.71%
Nonperforming loans $6,595 $6,376 $5,005
Other real estate and repossessed assets $- $80 $109
Nonperforming assets to total assets 2.18% 2.18% 1.74%
END OF PERIOD BALANCES
Loans $257,478 $255,695 $257,814
Total earning assets $290,427 $266,797 $272,786
Total assets $301,847 $295,892 $294,243
Deposits $260,195 $254,188 $253,249
Shareholders' equity $22,268 $21,808 $21,831
AVERAGE BALANCES
Loans $252,797 $257,429 $258,888
Total earning assets $278,858 $269,875 $274,509
Total assets $289,537 $287,793 $292,042
Deposits $247,764 $245,551 $251,223
Shareholders' equity $22,208 $22,182 $21,803
Years ended
2008 2008 December 31
4th Qtr 3rd Qtr 2008 2007
------- ------- ----- -----
(dollars in thousands except
per share data)
EARNINGS
Net interest income $2,082 $2,320 $8,810 $8,150
Provision for loan losses $870 $345 $1,712 $2,607
Non interest income $147 $1,085 $2,022 $1,499
Non interest expense $1,642 $1,965 $6,900 $6,133
Income taxes $(102) $451 $923 $405
Net income $(181) $644 $1,297 $504
Basic earnings per share* $(0.09) $0.32 $0.66 $0.26
Diluted earnings per share* $(0.09) $0.32 $0.64 $0.25
Average shares outstanding* 1,994,440 1,994,440 1,979,939 1,958,235
Average diluted shares
outstanding* 2,018,682 2,014,292 2,021,574 2,054,852
PERFORMANCE RATIOS
Return on average assets -0.25% 0.87% 0.45% 0.20%
Return on average common equity -3.32% 12.13% 6.23% 2.52%
Net interest margin (fully
tax equivalent) 2.95% 3.28% 3.20% 3.38%
Efficiency ratio 88.17% 57.72% 63.70% 63.56%
Full time equivalent employees 48 48 48 46
CAPITAL
Average equity to average assets 7.39% 7.20% 7.24% 7.95%
Tier 1 leverage capital ratio 9.70% 9.76% 9.70% 9.97%
Tier 1 risk based capital ratio 11.26% 11.37% 11.26% 11.17%
Total risk based capital ratio 12.87% 12.96% 12.87% 13.05%
Book value per share* $10.69 $10.73 $10.69 $9.94
Cash dividend per share - - - -
ASSET QUALITY
Gross loan charge offs $260 $119 $509 $2,554
Net loan charge offs $247 $115 $478 $2,554
Net loan charge offs to average
loans 0.09% 0.04% 0.19% 1.15%
Allowance for loan losses $4,351 $3,728 $4,351 $3,117
Allowance for losses to total
loans 1.65% 1.42% 1.65% 1.30%
Nonperforming loans $5,328 $2,095 $5,328 $2,243
Other real estate and
repossessed assets $269 $604 $269 $-
Nonperforming assets to total
assets 1.90% 0.92% 1.90% 0.84%
END OF PERIOD BALANCES
Loans $263,454 $262,098 $263,454 $239,392
Total earning assets $277,175 $283,448 $277,175 $254,321
Total assets $295,004 $292,240 $295,004 $267,829
Deposits $254,282 $251,438 $254,282 $239,183
Shareholders' equity $21,402 $21,474 $21,402 $19,527
AVERAGE BALANCES
Loans $260,959 $261,598 $255,114 $222,114
Total earning assets $280,354 $281,152 $275,325 $241,036
Total assets $292,931 $293,197 $287,266 $251,136
Deposits $251,768 $252,297 $248,185 $221,913
Shareholders' equity $21,657 $21,106 $20,812 $19,960
* Adjusted for 5 percent stock dividends paid June 6, 2008 and
June 11, 2009
Contact: Michael S. Sutton, CEO
John M. Schenk, CFO
Phone: (812) 962-2265
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