American Community Bancshares, Inc. Announces Results for the Year
ended December 31, 2004 and Declares Cash Dividend CHARLOTTE, N.C.,
Jan. 26 /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 sharply higher unaudited net income for the year ended
December 31, 2004 of $2,897,000, which represents a 108.7% increase
over the $1,388,000 earned in the similar period of 2003. The FNB
acquisition accounted for $677,000 of the $1,509,000 increase in
earnings. Earnings per share (diluted) increased to $0.79 compared
to $0.48 in 2003. The return on average assets for the year was
0.83%, with a return on average equity of 9.09%. For the fourth
quarter of 2004, net income was $830,000 compared to $307,000
earned in the same period in 2003, an increase of 170.4%. The FNB
acquisition accounted for $279,000 of the $523,000 increase.
Earnings per share (diluted) for the fourth quarter were $0.21
compared to $0.10 in the fourth quarter of 2003. During December,
ACB recorded a $350,000 charge to pre-tax earnings in anticipation
of acceptance of a proposed settlement involving ongoing
litigation. The acceptance of the proposed settlement has not been
confirmed and the appeals process regarding this litigation is
continuing. Absent this charge, earnings for the year and three
months ended December 31, 2004 would have been $3,117,000, or $0.85
per share (diluted), and $1,051,000, or $0.26 per share (diluted),
respectively. Total assets at December 31, 2004 were $399,089,000,
with loans receivable of $304,338,000, deposits of $306,516,000 and
stockholders' equity of $37,126,000. Total assets increased
$117,836,000 or 41.9% from December 31, 2003, loans increased
$102,334,000 or 50.7%, deposits increased $98,353,000 or 47.3% and
stockholders' equity increased $12,937,000 or 53.5%. The
acquisition of FNB added assets of $82,700,000, total loans of
$56,200,000 and deposits of $61,300,000 at April 15, 2004. The
allowance for loan losses represented 1.13% of total loans at
December 31, 2004. Non-performing loans totaled $881,000 or 0.29%
of loans, an increase of $551,000 or 167.0% from the December 31,
2003 balance of $330,000 or 0.16% of loans. Non-performing loans
from the FNB acquisition accounted for $124,000 of the increase.
Non-earning assets (which includes non-performing loans, foreclosed
real estate, and repossessed assets) totaled $1,192,000 at December
31, 2004 and represented 0.30% of total assets compared to $487,000
at December 31, 2003, which represented 0.14% of total assets. This
increase of $705,000 represented a 144.8% increase from the balance
at December 31, 2003. While non-earning assets increased over the
prior year, management does not anticipate any significant loss due
to our collateral position in these non-earning assets. Non-earning
assets from the FNB acquisition accounted for $181,000 of the
increase. The provision for loan losses for the year ended December
31, 2004 totaled $573,000, a decrease of 26.8% over the $784,000 in
2003. The 2003 provision was higher primarily due to the charge off
of a commercial line of credit for which a provision for losses of
$138,000 was recorded in 2003. Net interest income for the year
ended December 31, 2004 totaled $11,996,000, an increase of 52.1%
over the $7,886,000 in 2003. The FNB acquisition accounted for
$2,276,000 of this increase. The 2004 results also include a
$692,000 or 26.2% increase in non-interest income from $2,645,000
in 2003 to $3,337,000 in 2004. The FNB acquisition accounted for
$582,000 of the increase. The increase is primarily due to
increases in deposit account charges of $566,000 combined with
gains on the sale of investments of $106,000. Operating expenses
increased $2,598,000 or 34.4% from $7,552,000 in 2003 to
$10,150,000 in 2004. This increase is due primarily to increased
compensation and occupancy costs associated with branch expansion,
professional fees and the previously discussed $350,000 litigation
charge. The FNB acquisition accounted for $1,685,000 of the
increase. The Company has also initiated a quarterly cash dividend
program and the dividend for the first quarter 2005 will be $0.05
per share. The dividend will be payable on March 1, 2005 to
shareholders of record on February 15, 2005. American Community
Bancshares, Inc. 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) and three offices in
Mecklenburg County, home of Charlotte, North Carolina's largest
city and the nation's second largest financial center. A ninth
branch is in the renovation phase in the Southend area of Charlotte
and should open during the second quarter of 2005. First National
Bank of the Carolinas is a full service community bank,
headquartered in Gaffney, SC and has three offices in Cherokee
County. A fourth branch is currently under construction in the town
of Tega Cay located in York County, SC and should also open during
the second quarter of 2005. 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, Director of Shareholder
Relations or Dan Ellis, Chief Financial Officer at (704) 225-8444.
American Community Bancshares, Inc. (Amounts in thousands except
per share data) (Unaudited) Consolidated Balance Sheet December 31,
2004 2003 (a) Assets Cash and due from banks $9,489 $7,330
Interest-earning deposits with banks 6,521 11,012 Investment
securities 54,019 52,069 Loans 307,826 204,533 Allowance for loan
losses (3,488) (2,529) Net loans 304,338 202,004 Accrued interest
receivable 1,697 1,131 Bank premises and equipment 8,741 5,339
Non-marketable equity securities 2,459 792 Other real estate owned
311 117 Goodwill 9,838 - Other assets 1,676 1,459 Total assets
$399,089 $281,253 Liabilities and stockholders' equity Deposits
Non-interest bearing $45,352 $29,782 Interest bearing 261,164
178,381 Total deposits 306,516 208,163 Borrowings 54,169 48,319
Accrued expenses and other liabilities 1,278 582 Total liabilities
361,963 257,064 Total stockholders' equity 37,126 24,189 Total
liabilities and stockholders' equity $399,089 $281,253 Ending
shares outstanding 3,489,249 2,825,709 Book value per share $10.64
$8.56 (a) Derived from audited financial statements American
Community Bancshares, Inc. (Amounts in thousands except per share
data) (Unaudited) Three Months ended Year ended December 31,
December 31, Consolidated Income Statements 2004 2003 2004 2003 (a)
Total interest income $5,290 $3,458 $18,216 $13,055 Total interest
expense 1,780 1,274 6,220 5,169 Net interest income 3,510 2,184
11,996 7,886 Provision for loan losses 158 148 573 784 Net interest
income after provision for loan losses 3,352 2,036 11,423 7,102
Non-interest income Service charges on deposit accounts 628 372
2,306 1,740 Mortgage banking operations 119 72 364 517 Realized
gains on sale of securities 7 - 106 - Other 130 98 561 388 Total
non-interest income 884 542 3,337 2,645 Non-interest expense
Salaries and employee benefits 1,255 1,022 4,860 3,854 Occupancy
and equipment 472 409 1,755 1,363 Other 1,191 665 3,535 2,335 Total
non-interest expense 2,918 2,096 10,150 7,552 Income before income
taxes 1,318 482 4,610 2,195 Provision (benefit) for income taxes
488 175 1,713 807 Net income $830 $307 $2,897 $1,388 Net income per
share Basic 0.24 0.11 0.88 0.49 Diluted 0.21 0.10 0.79 0.48
Weighted average number of shares outstanding Basic 3,472,863
2,824,376 3,274,837 2,824,376 Diluted 3,989,045 3,053,723 3,675,574
2,877,301 (a) Derived from audited financial statements American
Community Bancshares, Inc. (Amounts in thousands except share and
per share data) (Unaudited) Consolidated Balance Sheet December 31,
September 30, June 30, 2004 2004 2004 Assets Cash and due from
banks $9,489 $7,448 $5,960 Interest-earning deposits with banks
6,521 10,608 5,774 Investment securities 54,019 46,769 51,488 Loans
307,826 290,398 283,995 Allowance for loan losses (3,488) (3,478)
(3,413) Net loans 304,338 286,920 280,582 Accrued interest
receivable 1,697 1,537 1,407 Bank premises and equipment 8,741
8,263 8,284 Foreclosed real estate 311 214 122 Non-marketable
equity securities at cost 2,459 1,392 1,088 Goodwill 9,838 10,149
10,125 Other assets 1,676 2,272 3,285 Total assets $399,089
$375,572 $368,115 Liabilities and stockholders' equity Deposits
Non-interest bearing $45,352 $40,977 $41,718 Interest bearing
261,164 244,208 238,277 Total deposits 306,516 285,185 279,995
Borrowings 54,169 52,164 51,578 Accrued expenses and other
liabilities 1,278 1,946 1,865 Total liabilities 361,963 339,295
333,438 Total stockholders' equity 37,126 36,277 34,677 Total
liabilities and stockholders' equity $399,089 $375,572 $368,115
Ending shares outstanding 3,489,249 3,471,228 3,446,753 Book value
per share 10.64 10.45 10.06 (a) Derived from audited consolidated
financial statements American Community Bancshares, Inc. (Amounts
in thousands except share and per share data) (Unaudited)
Consolidated Balance Sheet March 31, December 31, 2004 2003 (a)
Assets Cash and due from banks $9,351 $7,330 Interest-earning
deposits with banks 7,520 11,012 Investment securities 48,908
52,069 Loans 212,066 204,533 Allowance for loan losses (2,645)
(2,529) Net loans 209,421 202,004 Accrued interest receivable 1,184
1,131 Bank premises and equipment 5,267 5,339 Foreclosed real
estate 21 117 Non-marketable equity securities at cost 672 792
Goodwill - - Other assets 1,774 1,459 Total assets $284,118
$281,253 Liabilities and stockholders' equity Deposits Non-interest
bearing $35,638 $29,782 Interest bearing 175,195 178,381 Total
deposits 210,833 208,163 Borrowings 47,928 48,319 Accrued expenses
and other liabilities 851 582 Total liabilities 259,612 257,064
Total stockholders' equity 24,506 24,189 Total liabilities and
stockholders' equity $284,118 $281,253 Ending shares outstanding
2,827,709 2,825,709 Book value per share 8.67 8.56 (a) Derived from
audited consolidated financial statements American Community
Bancshares, Inc. Consolidated Income Statements (Amounts in
thousands except share and per share data) (Unaudited) December 31,
September 30, June 30, Three months ended 2004 2004 2004 Total
interest income $5,290 $4,971 $4,421 Total interest expense 1,780
1,602 1,492 Net interest income 3,510 3,369 2,929 Provision for
loan losses 158 157 140 Net interest income after provision for
loan loss 3,352 3,212 2,789 Non-interest income Service charges on
deposit accounts 628 628 585 Mortgage banking operations 119 71 108
Realized gains on sale of securities 7 41 - Other 130 129 189 Total
non-interest income 884 869 882 Non-interest expense Salaries and
employee benefits 1,255 1,278 1,316 Occupancy and equipment 472 474
440 Other 1,191 836 874 Total non-interest expense 2,918 2,588
2,630 Income before income taxes 1,318 1,493 1,041 Provision for
income taxes 488 556 386 Net income $830 $937 $655 Net income per
share Basic $0.24 $0.27 $0.20 Diluted $0.21 $0.25 $0.18 Weighted
average number of shares outstanding Basic 3,472,863 3,453,019
3,344,713 Diluted 3,989,045 3,784,314 3,703,920 Return on average
equity 8.99% 10.55% 8.16% Return on average assets 0.85% 1.00%
0.73% Net interest margin 3.97% 3.97% 3.46% Allowance for loan
losses to total loans 1.13% 1.20% 1.20% Net charge-offs to avg
loans (annualized) 0.20% 0.13% 0.09% Nonperforming loans to total
loans 0.29% 0.31% 0.13% Nonperforming assets to total assets 0.30%
0.30% 0.14% American Community Bancshares, Inc. Consolidated Income
Statements (Amounts in thousands except share and per share data)
(Unaudited) March 31, December 31, Three months ended 2004 2003
Total interest income $3,534 $3,458 Total interest expense 1,346
1,274 Net interest income 2,188 2,184 Provision for loan losses 118
148 Net interest income after provision for loan loss 2,070 2,036
Non-interest income Service charges on deposit accounts 465 372
Mortgage banking operations 66 72 Realized gains on sale of
securities 58 - Other 113 98 Total non-interest income 702 542
Non-interest expense Salaries and employee benefits 1,011 1,022
Occupancy and equipment 369 409 Other 634 665 Total non-interest
expense 2,014 2,096 Income before income taxes 758 482 Provision
for income taxes 283 175 Net income $475 $307 Net income per share
Basic $0.17 $0.11 Diluted $0.15 $0.10 Weighted average number of
shares outstanding Basic 2,826,039 2,824,376 Diluted 3,145,162
3,053,723 Return on average equity 7.84% 5.12% Return on average
assets 0.69% 0.45% Net interest margin 3.38% 3.42% Allowance for
loan losses to total loans 1.25% 1.24% Net charge-offs to avg loans
(annualized) 0.00% 0.27% Nonperforming loans to total loans 0.13%
0.16% Nonperforming assets to total assets 0.12% 0.17% DATASOURCE:
American Community Bancshares, Inc. CONTACT: Stephanie Helms,
Director of Shareholder Relations, or Dan Ellis, Chief Financial
Officer of American Community Bancshares, Inc., +1-704-225-8444 Web
site: http://www.americancommunitybank.com/
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