American Community Bancshares, Inc. Announces Earnings for the
Quarter Ended September 30, 2004 CHARLOTTE, N.C., Oct. 18
/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 September 30, 2004 of
$937,000 or a 127.4% increase over unaudited earnings for the three
months ended September 30, 2003 of $412,000. The FNB acquisition
accounted for $205,000 of the $525,000 increase in earnings.
Earnings per share (diluted) for the three months ended September
30, 2004 increased to $0.25 compared to $0.14 for the three months
ended September 30, 2003. The annualized return on average assets
for the quarter was 1.00% with a return on average equity of
10.55%. Net income for the nine months ended September 30, 2004 was
$2,067,000 or a 91.2% increase over net income for the nine months
ended September 30, 2003 of $1,081,000. The FNB acquisition
accounted for $398,000 of the $986,000 increase in earnings.
Earnings per share (diluted) for the nine months ended September
30, 2004 increased to $0.59 compared to $0.38 for the nine months
ended September 30, 2003. The annualized return on average assets
for the nine months was 0.82% with a return on average equity of
8.92% Total assets at September 30, 2004 were $375.6 million, with
loan and lease receivables of $286.9 million, deposits of $285.2
million, borrowings of $52.2 million, and stockholders' equity of
$36.3 million. Total assets increased 38.9% or $105.1 million, from
September 30, 2003, loan and lease receivables increased 45.2% or
$89.2 million, deposits increased 37.2% or $77.4 million and
borrowings increased 36.7% or $14.0 million. The acquisition of FNB
of Gaffney, South Carolina added assets of $82.7 million, total
loans of $56.2 million and deposits and $61.3 million at April 15,
2004. The allowance for loan losses represented 1.20% of total
loans at September 30, 2004. Non-performing loans totaled $905,000
or 0.31% of loans at September 30, 2004 compared to $402,000 or
0.16% of loans at September 30, 2003, a $503,000 or a 125%
increase. The FNB acquisition accounted for $231,000 of the
increase in non-performing loans. Non-performing assets (which
includes foreclosed real estate and repossessed assets) totaled
$1,128,000 at September 30, 2004 and represented 0.30% of total
assets compared to $495,000 or 0.14% of total assets at September
30, 2003, a $633,000 or 127.9% increase. Net interest income for
the quarter ended September 30, 2004 totaled $3.4 million, an
increase of 67.0% over the $2.0 million for the quarter ended
September 30, 2003. Quarter-end results also include a $191,000 or
28.2% increase in non-interest income from $678,000 for the three
months ended September 30, 2003 to $869,000 for the three months
ended September 30, 2004. In addition, operating expenses increased
$696,000 or 36.8% from $1.9 million for the three months ended
September 30, 2003 to $2.6 million for the three months ended
September 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 share and per share data) (Unaudited)
Consolidated Balance Sheet September 30, June 30, March 31, 2004
2004 2004 Assets Cash and due from banks $7,448 $5,960 $9,351
Interest-earning deposits with banks 10,608 5,774 7,520 Investment
securities 46,769 51,488 48,908 Loans 290,398 283,995 212,066
Allowance for loan losses (3,478) (3,413) (2,645) Net loans 286,920
280,582 209,421 Accrued interest receivable 1,537 1,407 1,184 Bank
premises and equipment 8,263 8,284 5,267 Foreclosed real estate 214
122 21 Non-marketable equity securities at cost 1,392 1,088 672
Goodwill 10,149 10,125 - Other assets 2,272 3,285 1,774 Total
assets $375,572 $368,115 $284,118 Liabilities and stockholders'
equity Deposits Non-interest bearing $40,977 $41,718 $35,638
Interest bearing 244,208 238,277 175,195 Total deposits 285,185
279,995 210,833 Borrowings 52,164 51,578 47,928 Accrued expenses
and other liabilities 1,946 1,865 851 Total liabilities 339,295
333,438 259,612 Total stockholders' equity 36,277 34,677 24,506
Total liabilities and stockholders' equity $375,572 $368,115
$284,118 Ending shares outstanding 3,471,228 3,446,753 2,827,709
Book value per share 10.45 10.06 8.67 (a) Derived from audited
consolidated financial statements American Community Bancshares,
Inc. (Amounts in thousands except share and per share data)
(Unaudited) Consolidated Balance Sheet December 31, September 30,
2003 (a) 2003 Assets Cash and due from banks $7,330 $6,274
Interest-earning deposits with banks 11,012 3,205 Investment
securities 52,069 54,425 Loans 204,533 200,102 Allowance for loan
losses (2,529) (2,426) Net loans 202,004 197,676 Accrued interest
receivable 1,131 1,084 Bank premises and equipment 5,339 5,271
Foreclosed real estate 117 - Non-marketable equity securities at
cost 792 792 Goodwill - - Other assets 1,459 1,780 Total assets
$281,253 $270,507 Liabilities and stockholders' equity Deposits
Non-interest bearing $29,782 $31,721 Interest bearing 178,381
176,069 Total deposits 208,163 207,790 Borrowings 48,319 38,156
Accrued expenses and other liabilities 582 768 Total liabilities
257,064 246,714 Total stockholders' equity 24,189 23,793 Total
liabilities and stockholders' equity $281,253 $270,507 Ending
shares outstanding 2,825,709 2,824,376 Book value per share 8.56
8.42 (a) Derived from audited consolidated financial statements
American Community Bancshares, Inc. Consolidated Income Statements
(Amounts in thousands except share and per share data) (Unaudited)
September 30, June 30, March 31, Three months ended 2004 2004 2004
Total interest income $4,971 $4,421 $3,534 Total interest expense
1,602 1,492 1,346 Net interest income 3,369 2,929 2,188 Provision
for loan losses 157 140 118 Net interest income after provision for
loan loss 3,212 2,789 2,070 Non-interest income Service charges on
deposit accounts 628 585 465 Mortgage banking operations 71 108 66
Realized gains on sale of securities 41 - 58 Other 129 189 113
Total non-interest income 869 882 702 Non-interest expense Salaries
and employee benefits 1,278 1,316 1,011 Occupancy and equipment 474
440 369 Other 836 874 634 Total non-interest expense 2,588 2,630
2,014 Income before income taxes 1,493 1,041 758 Provision for
income taxes 556 386 283 Net income $937 $655 $475 Net income per
share Basic $0.27 $0.20 $0.17 Diluted $0.25 $0.18 $0.15 Weighted
average number of shares outstanding Basic 3,453,019 3,344,713
2,826,039 Diluted 3,784,314 3,703,920 3,145,162 Return on average
equity 10.55% 8.16% 7.84% Return on average assets 1.00% 0.73%
0.69% Net interest margin 3.97% 3.46% 3.38% Allowance for loan
losses to total loans 1.20% 1.20% 1.25% Net charge-offs to avg.
loans (annualized) 0.13% 0.09% 0.00% Nonperforming loans to total
loans 0.31% 0.13% 0.13% Nonperforming assets to total assets 0.30%
0.14% 0.12% American Community Bancshares, Inc. Consolidated Income
Statements (Amounts in thousands except share and per share data)
(Unaudited) December 31, September 30, Three months ended 2003 2003
Total interest income $3,458 $3,304 Total interest expense 1,274
1,287 Net interest income 2,184 2,017 Provision for loan losses 148
144 Net interest income after provision for loan loss 2,036 1,873
Non-interest income Service charges on deposit accounts 372 420
Mortgage banking operations 72 142 Realized gains on sale of
securities - - Other 98 116 Total non-interest income 542 678
Non-interest expense Salaries and employee benefits 1,022 975
Occupancy and equipment 409 355 Other 665 562 Total non-interest
expense 2,096 1,892 Income before income taxes 482 659 Provision
for income taxes 175 247 Net income $307 $412 Net income per share
Basic $0.11 $0.15 Diluted $0.10 $0.14 Weighted average number of
shares outstanding Basic 2,824,376 2,824,376 Diluted 3,053,723
2,900,162 Return on average equity 5.12% 7.00% Return on average
assets 0.45% 0.66% Net interest margin 3.42% 3.43% Allowance for
loan losses to total loans 1.24% 1.21% Net charge-offs to avg.
loans (annualized) 0.27% 0.00% Nonperforming loans to total loans
0.16% 0.13% Nonperforming assets to total assets 0.17% 0.12%
DATASOURCE: American Community Bancshares, Inc. CONTACT: Stephanie
Helms, Shareholder Relations, or Dan Ellis, CFO, of American
Community Bancshares, Inc., +1-704-225-8444 Web site:
http://www.americancommunitybank.com/
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