American Community Bancshares, Inc. Announces Earnings for the Quarter Ended March 31, 2005 CHARLOTTE, N.C., April 19 /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 (ACB) and First National Bank of the Carolinas (FNB), announced higher unaudited earnings for the three months ended March 31, 2005 of $1,048,000 or a 120.6% increase over unaudited earnings for the three months ended March 31, 2004 of $475,000. The FNB acquisition accounted for $256,000 of the $573,000 increase in earnings. Earnings per share (diluted) for the three months ended March 31, 2005 increased to $0.26 compared to $0.15 for the three months ended March 31, 2004. The annualized return on average assets for the quarter was 1.05% with an annualized return on average equity of 11.11%. Total assets at March 31, 2005 were $402.1 million, with loan and lease receivables of $309.4 million, deposits of $314.5 million, borrowings of $46.5 million, and stockholders' equity of $39.5 million. Total assets increased 41.5% or $118.0 million, from March 31, 2004, loan and lease receivables increased 47.7% or $100.0 million, deposits increased 49.2% or $103.7 million and borrowings decreased 2.9% or $1.4 million. The acquisition of FNB of Gaffney, South Carolina added assets of $82.7 million, total loans of $56.2 million and deposits of $61.3 million at April 15, 2004. The allowance for loan losses represented 1.14% of total loans at March 31, 2005. Non-performing loans, the majority of which are secured by real estate, totaled $759,000 or 0.24% of loans at March 31, 2005 compared to $280,000 or 0.13% of loans at March 31, 2004, a $479,000 or a 171% increase. The FNB acquisition accounted for $73,000 of the increase in non-performing loans. Non-performing assets (which includes foreclosed real estate and repossessed assets) totaled $1,092,000 at March 31, 2005 and represented 0.27% of total assets compared to $353,000 or 0.12% of total assets at March 31, 2004, a $739,000 or 209.3% increase. The FNB acquisition accounted for $118,000 of the increase in non-performing assets. Net interest income for the quarter ended March 31, 2005 totaled $3.7 million, an increase of 69% over the $2.2 million for the quarter ended March 31, 2004. Primarily as a result of Federal Reserve rate increases, the Company's net interest margin continued to improve increasing to 4.03% for the quarter ended March 31, 2005 from 3.97% for the quarter ended December 31, 2004. Currently approximately 63% of the loan portfolio is floating rate and adjusts with movements in the bank's prime lending rate. Quarter-end results also include a $45,000 or 6.4% increase in non-interest income from $702,000 for the three months ended March 31, 2004 to $747,000 for the three months ended March 31, 2005. In addition, operating expenses increased $634,000 or 31.5% from $2.0 million for the three months ended March 31, 2004 to $2.6 million for the three months ended March 31, 2005. The FNB acquisition accounted for $542,000 of this increase. American Community Bancshares, headquartered in Charlotte, NC is the holding company for American Community Bank and First National Bank of the Carolinas which was merged into American Community Bank after the close of business on March 31, 2005. 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 and three offices in Cherokee County, SC. Two additional branches, one in the South End area of Mecklenburg County, NC and one in the Tega Cay area of York County, SC, are under construction and are expected to open during the second quarter of 2005. The Bank provides 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 share and per share data) (Unaudited) Consolidated Balance Sheet March 31, Dec. 31, Sept. 30, June 30, March 31, 2005 2004 (a) 2004 2004 2004 Assets Cash and due from banks $11,478 $9,511 $7,448 $5,960 $9,351 Interest-earning deposits with banks 5,833 6,521 10,608 5,774 7,520 Investment securities 49,680 54,019 46,769 51,488 48,908 Loans 312,970 307,988 290,398 283,995 212,066 Allowance for loan losses (3,562) (3,488) (3,478) (3,413) (2,645) Net loans 309,408 304,500 286,920 280,582 209,421 Accrued interest receivable 1,842 1,697 1,537 1,407 1,184 Bank premises and equipment 9,171 8,741 8,263 8,284 5,267 Foreclosed real estate 221 311 214 122 21 Non-marketable equity securities at cost 2,139 2,040 1,392 1,088 672 Goodwill 9,838 9,838 10,149 10,125 - Other assets 2,492 2,280 2,272 3,285 1,774 Total assets $402,102 $399,458 $375,572 $368,115 $284,118 Liabilities and stockholders' equity Deposits Non-interest bearing $46,120 $45,501 $40,977 $41,718 $35,638 Interest bearing 268,377 261,164 244,208 238,277 175,195 Total deposits 314,497 306,665 285,185 279,995 210,833 Borrowings 46,521 54,169 52,164 51,578 47,928 Accrued expenses and other liabilities 1,626 1,652 1,946 1,865 851 Total liabilities 362,644 362,486 339,295 333,438 259,612 Total stockholders' equity 39,458 36,972 36,277 34,677 24,506 Total liabilities and stockholders' equity $402,102 $399,458 $375,572 $368,115 $284,118 Ending shares outstanding 3,706,806 3,489,249 3,471,228 3,446,753 2,827,709 Book value per share 10.64 10.60 10.45 10.06 8.67 (a) Derived from audited consolidated financial statements American Community Bancshares, Inc. Consolidated Income Statements (Amounts in thousands except share and per share data) (Unaudited) March 31, Dec. 31, Sept. 30, June 30, March 31, Three months ended 2005 2004 (a) 2004 2004 2004 Total interest income $5,672 $5,290 $4,971 $4,421 $3,534 Total interest expense 1,981 1,780 1,602 1,492 1,346 Net interest income 3,691 3,510 3,369 2,929 2,188 Provision for loan losses 109 158 157 140 118 Net interest income after provision for loan loss 3,582 3,352 3,212 2,789 2,070 Non-interest income Service charges on deposit accounts 513 628 628 585 465 Mortgage banking operations 88 119 71 108 66 Realized gains on sale of securities 10 7 41 - 58 Other 136 130 129 189 113 Total non-interest income 747 884 869 882 702 Non-interest expense Salaries and employee benefits 1,350 1,255 1,278 1,316 1,011 Occupancy and equipment 485 472 474 440 369 Other 813 1,441 836 874 634 Total non-interest expense 2,648 3,168 2,588 2,630 2,014 Income before income taxes 1,681 1,068 1,493 1,041 758 Provision for income taxes 633 392 556 386 283 Net income $1,048 $676 $937 $655 $475 Net income per share Basic $0.29 $0.19 $0.27 $0.20 $0.17 Diluted $0.26 $0.17 $0.25 $0.18 $0.15 Weighted average number of shares outstanding Basic 3,598,295 3,472,863 3,453,019 3,344,713 2,826,039 Diluted 4,055,590 3,989,045 3,784,314 3,703,920 3,145,162 Return on average equity 11.11% 7.36% 10.55% 8.16% 7.84% Return on average assets 1.05% 0.70% 1.00% 0.73% 0.69% Net interest margin 4.03% 3.97% 3.97% 3.46% 3.38% Allowance for loan losses to total loans 1.14% 1.13% 1.20% 1.20% 1.25% Net charge-offs to avg loans (annualized) 0.01% 0.20% 0.13% 0.09% 0.00% Nonperforming loans to total loans 0.24% 0.29% 0.31% 0.13% 0.13% Nonperforming assets to total assets 0.27% 0.30% 0.30% 0.14% 0.12% DATASOURCE: American Community Bancshares, Inc. CONTACT: Stephanie Helms, Shareholder Relations, or Dan Ellis, CFO, both of American Community Bancshares, Inc., +1-704-225-8444 Web site: http://www.americancommunitybank.com/

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