American Community Bancshares, Inc. Announces Earnings for the
Quarter Ended March 31, 2004 CHARLOTTE, N.C., April 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,
announced sharply higher unaudited earnings for the three months
ended March 31, 2004 of $475,000 or an 80.6% increase over
unaudited earnings for the three months ended March 31, 2003 of
$263,000. Earnings per share (diluted) for the three months ended
March 31, 2004 increased to $0.15 compared to $0.09 for the three
months ended March 31, 2003. The annualized return on average
assets for the quarter was 0.69% with a return on average equity of
7.84%. We paid our second annual cash dividend in the amount of
$0.10 per share on February 20, 2004. Total assets at March 31,
2004 were $284.1 million, with loan and lease receivables of $212.1
million, deposits of $210.8 million, borrowings of $47.9 million,
and stockholders' equity of $24.5 million. Total assets increased
23.0% or $53.1 million, from March 31, 2003, loan and lease
receivables increased 21.9% or $38.1 million, deposits increased
15.6% or $28.5 million and borrowings increased 91.6% or $22.9
million primarily to fund the purchase of additional investment
securities. The allowance for loan losses represented 1.25% of
total loans at March 31, 2004. Non-performing loans totaled
$280,000 or 0.13% of loans at March 31, 2004 compared to $58,000 or
0.03% of loans at March 31, 2003, a $222,000 or a 383% increase.
Non-performing assets (which includes foreclosed real estate and
repossessed assets) totaled $353,000 at March 31, 2004 and
represented 0.12% of total assets compared to $356,000 or 0.15% of
total assets at March 31, 2003, a $3,000 or 0.8% decrease. Net
interest income for the quarter ended March 31, 2004 totaled
$2,188,000, an increase of 24.0% over the $1,764,000 for the
quarter ended March 31, 2003. Quarter-end results also include a
$22,000 or 3.2% increase in non-interest income from $680,000 for
the three months ended March 31, 2003 to $702,000 for the three
months ended March 31, 2004. In addition, operating expenses
increased $349,000 or 21.0% from $1,665,000 for the three months
ended March 31, 2003 to $2,014,000 for the three months ended March
31, 2004 due to an increase in compensation expense through the
addition of key personnel combined with the normal increases
associated with administrative and overhead costs. The Company
entered into an agreement on November 5, 2003 to acquire First
National Bancshares, Inc. The merger was consummated on April 15,
2004. As of April 15, 2004, First National Bank had assets of $72.4
million, total loans of $56.1 million and deposits of $61.3
million. The combined entities will give American Community
Bancshares, Inc. total assets of $356.5 million, loans of $268.2
million, deposits of $272.1 million and shareholders equity of
$32.1 million, with eleven offices located in North and South
Carolina. American Community Bank is a full service community bank
with five offices in Union County, North Carolina's fastest growing
county and three in Mecklenburg County, home of Charlotte, North
Carolina's largest city and the nation's second largest financial
center. The Bank provides a wide assortment of traditional banking
and financial services offered with a high level of personal
attention. The Bank's 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. American
Community Bancshares, Inc. (Amounts in thousands except per share
data) (Unaudited) March December September Consolidated Balance
Sheet 31, 31, 30, 2004 2003(a) 2003 Assets Cash and due from banks
$9,351 $7,330 $6,274 Interest-earning deposits with banks 7,520
11,012 3,205 Investment securities 48,908 52,069 54,425 Loans
212,066 204,533 200,102 Allowance for loan losses (2,645) (2,529)
(2,426) Net loans 209,421 202,004 197,676 Accrued interest
receivable 1,184 1,131 1,084 Bank premises and equipment 5,267
5,339 5,271 Foreclosed real estate 21 117 - Federal Home Loan Bank
stock 672 792 792 Other assets 1,774 1,459 1,780 Total assets
$284,118 $281,253 $270,507 Liabilities and stockholders' equity
Deposits Non-interest bearing $35,638 $29,782 $31,721 Interest
bearing 175,195 178,381 176,069 Total deposits 210,833 208,163
207,790 Borrowings 47,928 48,319 38,156 Accrued expenses and other
liabilities 851 582 768 Total liabilities 259,612 257,064 246,714
Total stockholders' equity 24,506 24,189 23,793 Total liabilities
and stockholders' equity $284,118 $281,253 $270,507 Ending shares
outstanding 2,827,709 2,825,709 2,824,376 Book value per share 8.67
8.56 8.42 (a) Derived from audited financial statements American
Community Bancshares, Inc. (Amounts in thousands except per share
data) (Unaudited) Consolidated Balance Sheet June 30, March 31,
2003 2003 Assets Cash and due from banks $7,846 $5,444
Interest-earning deposits with banks 1,116 11,822 Investment
securities 40,842 33,323 Loans 188,853 173,974 Allowance for loan
losses (2,286) (2,129) Net loans 186,567 171,845 Accrued interest
receivable 1,060 980 Bank premises and equipment 5,197 4,863
Foreclosed real estate 94 94 Federal Home Loan Bank stock 792 800
Other assets 1,462 1,809 Total assets $244,976 $230,980 Liabilities
and stockholders' equity Deposits Non-interest bearing $25,084
$23,739 Interest bearing 172,659 158,619 Total deposits 197,743
182,358 Borrowings 23,021 25,019 Accrued expenses and other
liabilities 716 575 Total liabilities 221,480 207,952 Total
stockholders' equity 23,496 23,028 Total liabilities and
stockholders' equity $244,976 $230,980 Ending shares outstanding
2,824,376 2,824,376 Book value per share 8.32 8.15 American
Community Bancshares, Inc. Consolidated Income Statements (Amounts
in thousands except per share data) (Unaudited) March December
September 31, 31, 30, Three months ended 2004 2003 2003 Total
interest income $3,534 $3,458 $3,304 Total interest expense 1,346
1,274 1,287 Net interest income 2,188 2,184 2,017 Provision for
loan losses 118 148 144 Net interest income after provision for
loan loss 2,070 2,036 1,873 Non-interest income Service charges on
deposit accounts 465 372 420 Mortgage banking operations 66 72 142
Realized gains on sale of securities 58 - - Other 113 98 116 Total
non-interest income 702 542 678 Non-interest expense Salaries and
employee benefits 1,011 1,022 975 Occupancy and equipment 369 409
355 Other 634 665 562 Total non-interest expense 2,014 2,096 1,892
Income before income taxes 758 482 659 Provision for income taxes
283 175 247 Net income $475 $307 $412 Net income per share Basic
$0.17 $0.11 $0.15 Diluted $0.15 $0.10 $0.14 Weighted average number
of shares outstanding Basic 2,826,039 2,824,376 2,824,376 Diluted
3,145,162 3,053,723 2,900,162 Return on average equity 7.84% 5.12%
7.00% Return on average assets 0.69% 0.45% 0.66% Net interest
margin 3.38% 3.42% 3.43% Allowance for loan losses to total loans
1.25% 1.24% 1.21% Net charge-offs to avg loans (annualized) 0.00%
0.27% 0.00% Nonperforming loans to total loans 0.13% 0.16% 0.13%
Nonperforming assets to total assets 0.12% 0.17% 0.12% American
Community Bancshares, Inc. Consolidated Income Statements (Amounts
in thousands except per share data) (Unaudited) June 30, March 31,
Three months ended 2003 2003 Total interest income $3,263 $3,030
Total interest expense 1,342 1,266 Net interest income 1,921 1,764
Provision for loan losses 127 365 Net interest income after
provision for loan loss 1,794 1,399 Non-interest income Service
charges on deposit accounts 481 467 Mortgage banking operations 163
140 Realized gains on sale of securities - - Other 101 73 Total
non-interest income 745 680 Non-interest expense Salaries and
employee benefits 1,003 854 Occupancy and equipment 302 297 Other
594 514 Total non-interest expense 1,899 1,665 Income before income
taxes 640 414 Provision for income taxes 234 151 Net income $406
$263 Net income per share Basic $0.14 $0.09 Diluted $0.14 $0.09
Weighted average number of shares outstanding Basic 2,824,376
2,824,376 Diluted 2,859,066 2,829,897 Return on average equity
6.98% 4.61% Return on average assets 0.68% 0.48% Net interest
margin 3.42% 3.47% Allowance for loan losses to total loans 1.21%
1.22% Net charge-offs to avg loans (annualized) -0.07% 1.44%
Nonperforming loans to total loans 0.05% 0.03% Nonperforming assets
to total assets 0.15% 0.15% DATASOURCE: American Community
Bancshares, Inc. CONTACT: Randy P. Helton, President and Chief
Executive Officer of American Community Bancshares, Inc.,
+1-704-225-8444 Web site: http://www.americancommunitybank.com/
Copyright
