American Community Bancshares, Inc. Announces Earnings for the Quarter Ended March 31, 2004

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., [phone]



Web site: http://www.americancommunitybank.com/ 

Copyright