American Community Bancshares, Inc. Announces Earnings for the
Quarter Ended June 30, 2004 CHARLOTTE, N.C., July 20
/PRNewswire-FirstCall/ -- Randy P. Helton, President and Chief
Executive Officer of American Community Bancshares, Inc. (Nasdaq:
ACBA; ACBAW) the holding company for American Community Bank and
First National Bank of the Carolinas, announced higher unaudited
earnings for the three months ended June 30, 2004 of $655,000 or an
61.3% increase over unaudited earnings for the three months ended
June 30, 2003 of $406,000. Earnings per share (diluted) for the
three months ended June 30, 2004 increased to $0.18 compared to
$0.14 for the three months ended June 30, 2003. The annualized
return on average assets for the quarter was 0.73% with a return on
average equity of 8.16%. Net income for the six months ended June
30, 2004 was $1,130,000 or a 68.9% increase over net income for the
six months ended June 30, 2003 of $669,000. Earnings per share
(diluted) for the three months ended June 30, 2004 increased to
$0.33 compared to $0.24 for the three months ended June 30, 2003.
The annualized return on average assets for the six months was
0.71%, with a return on average equity of 7.85%. Total assets at
June 30, 2004 were $368.1 million, with loan and lease receivables
of $280.6 million, deposits of $280.0 million, borrowings of $51.6
million, and stockholders' equity of $34.7 million. Total assets
increased 50.2% or $123.1 million, from June 30, 2003, loan and
lease receivables increased 50.4% or $94.0 million, deposits
increased 41.6% or $82.3 million and borrowings increased 124.1% or
$28.6 million. The acquisition of First National Bank of the
Carolinas of Gaffney, South Carolina added assets of $82.7 million,
total loans of $56.1 million and deposits and $61.3 million at
April 15, 2004. "All of us at American Community Bancshares are
especially pleased with the acquisition of First National Bank of
the Carolinas and the addition of our new branches in Gaffney and
Blacksburg, South Carolina. We are very excited about the
opportunities that exist for expansion into the South Carolina
markets," said Randy Helton, President and Chief Executive Officer
of American Community Bancshares, Inc. The allowance for loan
losses represented 1.20% of total loans at June 30, 2004.
Non-performing loans totaled $378,000 or 0.13% of loans at June 30,
2004 compared to $91,000 or 0.05% of loans at June 30, 2003, a
$287,000 or a 315% increase. Non-performing assets (which includes
foreclosed real estate and repossessed assets) totaled $527,000 at
June 30, 2004 and represented 0.14% of total assets compared to
$281,000 or 0.11% of total assets at June 30, 2003, a $246,000 or
87.5% increase. Net interest income for the quarter ended June 30,
2004 totaled $2.9 million, an increase of 52.6% over the $1.9
million for the quarter ended June 30, 2003. Quarter-end results
also include a $137,000 or 18.4% increase in non-interest income
from $745,000 for the three months ended June 30, 2003 to $882,000
for the three months ended June 30, 2004. In addition, operating
expenses increased $731,000 or 36.8% from $1.9 million for the
three months ended June 30, 2003 to $2.6 million for the three
months ended June 30, 2004. American Community Bancshares,
headquartered in Charlotte, NC is the holding company for American
Community Bank and First National Bank of the Carolinas. American
Community Bank is a full service community bank, headquartered in
Monroe, NC with five offices in Union County, North Carolina's
fastest growing county. The Bank also has three offices in
Mecklenburg County, home of Charlotte, North Carolina's largest
city and the nation's second largest financial center. First
National Bank of the Carolinas is a full service community bank,
headquartered in Gaffney, SC with two offices in Gaffney and one in
Blacksburg, SC. A proposed fourth branch was recently announced to
be built in the township of Tega Cay located in York County, SC.
The Banks provide a wide assortment of traditional banking and
financial services offered with a high level of personal attention.
American Community Bancshares website is
http://www.americancommunitybank.com/ . American Community
Bancshares stock is traded on the NASDAQ SmallCap market under the
symbol "ACBA" with stock warrants traded under "ACBAW." For more
information contact -- Stephanie Helms, Shareholder Relations, or
Dan Ellis, CFO at (704) 225-8444. American Community Bancshares,
Inc. (Amounts in thousands except per share data) (Unaudited)
Consolidated Balance Sheet June 30, March 31, December 31, 2004
2004 2003 (a) Assets Cash and due from banks $5,960 $9,351 $7,330
Interest-earning deposits with banks 5,774 7,520 11,012 Investment
securities 51,488 48,908 52,069 Loans 283,995 212,066 204,533
Allowance for loan losses (3,413) (2,645) (2,529) Net loans 280,582
209,421 202,004 Accrued interest receivable 1,407 1,184 1,131 Bank
premises and equipment 8,284 5,267 5,339 Foreclosed real estate 122
21 117 Federal Home Loan Bank stock 1,088 672 792 Goodwill 10,125 -
- Other assets 3,285 1,774 1,459 Total assets $368,115 $284,118
$281,253 Liabilities and stockholders' equity Deposits Non-interest
bearing $41,718 $35,638 $29,782 Interest bearing 238,277 175,195
178,381 Total deposits 279,995 210,833 208,163 Borrowings 51,578
47,928 48,319 Accrued expenses and other liabilities 1,865 851 582
Total liabilities 333,438 259,612 257,064 Total stockholders'
equity 34,677 24,506 24,189 Total liabilities and stockholders'
equity $368,115 $284,118 $281,253 Ending shares outstanding
3,446,753 2,827,709 2,825,709 Book value per share 10.06 8.67 8.56
(a) Derived from audited financial statements American Community
Bancshares, Inc. (Amounts in thousands except per share data)
(Unaudited) Consolidated Balance Sheet September 30, June 30, 2003
2003 Assets Cash and due from banks $6,274 $7,846 Interest-earning
deposits with banks 3,205 1,116 Investment securities 54,425 40,842
Loans 200,102 188,853 Allowance for loan losses (2,426) (2,286) Net
loans 197,676 186,567 Accrued interest receivable 1,084 1,060 Bank
premises and equipment 5,271 5,197 Foreclosed real estate - 94
Federal Home Loan Bank stock 792 792 Goodwill - - Other assets
1,780 1,462 Total assets $270,507 $244,976 Liabilities and
stockholders' equity Deposits Non-interest bearing $31,721 $25,084
Interest bearing 176,069 172,659 Total deposits 207,790 197,743
Borrowings 38,156 23,021 Accrued expenses and other liabilities 768
716 Total liabilities 246,714 221,480 Total stockholders' equity
23,793 23,496 Total liabilities and stockholders' equity $270,507
$244,976 Ending shares outstanding 2,824,376 2,824,376 Book value
per share 8.42 8.32 (a) Derived from audited financial statements
American Community Bancshares, Inc. Consolidated Income Statements
(Amounts in thousands except per share data) (Unaudited) June 30,
March 31, December 31, Three months ended 2004 2004 2003 Total
interest income $4,421 $3,534 $3,458 Total interest expense 1,492
1,346 1,274 Net interest income 2,929 2,188 2,184 Provision for
loan losses 140 118 148 Net interest income after provision for
loan loss 2,789 2,070 2,036 Non-interest income Service charges on
deposit accounts 585 465 372 Mortgage banking operations 108 66 72
Realized gains on sale of securities - 58 - Other 189 113 98 Total
non-interest income 882 702 542 Non-interest expense Salaries and
employee benefits 1,316 1,011 1,022 Occupancy and equipment 440 369
409 Other 874 634 665 Total non-interest expense 2,630 2,014 2,096
Income before income taxes 1,041 758 482 Provision for income taxes
386 283 175 Net income $655 $475 $307 Net income per share Basic
$0.20 $0.17 $0.11 Diluted $0.18 $0.15 $0.10 Weighted average number
of shares outstanding Basic 3,344,713 2,826,039 2,824,376 Diluted
3,703,920 3,145,162 3,053,723 Return on average equity 8.16% 7.84%
5.12% Return on average assets 0.73% 0.69% 0.45% Net interest
margin 3.46% 3.38% 3.42% Allowance for loan losses to total loans
1.20% 1.25% 1.24% Net charge-offs to avg loans (annualized) 0.09%
0.00% 0.27% Nonperforming loans to total loans 0.13% 0.13% 0.16%
Nonperforming assets to total assets 0.14% 0.12% 0.17% American
Community Bancshares, Inc. Consolidated Income Statements (Amounts
in thousands except per share data) (Unaudited) September 30, June
30, Three months ended 2003 2003 Total interest income $3,304
$3,263 Total interest expense 1,287 1,342 Net interest income 2,017
1,921 Provision for loan losses 144 127 Net interest income after
provision for loan loss 1,873 1,794 Non-interest income Service
charges on deposit accounts 420 481 Mortgage banking operations 142
163 Realized gains on sale of securities - - Other 116 101 Total
non-interest income 678 745 Non-interest expense Salaries and
employee benefits 975 1,003 Occupancy and equipment 355 302 Other
562 594 Total non-interest expense 1,892 1,899 Income before income
taxes 659 640 Provision for income taxes 247 234 Net income $412
$406 Net income per share Basic $0.15 $0.14 Diluted $0.14 $0.14
Weighted average number of shares outstanding Basic 2,824,376
2,824,376 Diluted 2,900,162 2,859,066 Return on average equity
7.00% 6.98% Return on average assets 0.66% 0.68% Net interest
margin 3.43% 3.42% Allowance for loan losses to total loans 1.21%
1.21% Net charge-offs to avg loans (annualized) 0.00% -0.07%
Nonperforming loans to total loans 0.13% 0.05% Nonperforming assets
to total assets 0.12% 0.15% DATASOURCE: American Community
Bancshares, Inc. CONTACT: Stephanie Helms, Shareholder Relations,
or Dan Ellis, CFO, of American Community Bancshares, Inc.,
+1-704-225-8444
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