American Community Bancshares, Inc. Announces Earnings for the Quarter Ended June 30, 2004

American Community Bancshares, Inc. Announces Earnings for the
Quarter Ended June 30, 2004 


CHARLOTTE, N.C., July 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 and First National
Bank of the Carolinas, announced higher unaudited earnings for the three months
ended June 30, 2004 of $655,000 or an 61.3% increase over unaudited earnings
for the three months ended June 30, 2003 of $406,000. Earnings per share
(diluted) for the three months ended June 30, 2004 increased to $0.18 compared
to $0.14 for the three months ended June 30, 2003. The annualized return on
average assets for the quarter was 0.73% with a return on average equity of
8.16%.

Net income for the six months ended June 30, 2004 was $1,130,000 or a 68.9%
increase over net income for the six months ended June 30, 2003 of $669,000. 
Earnings per share (diluted) for the three months ended June 30, 2004 increased
to $0.33 compared to $0.24 for the three months ended June 30, 2003.  The
annualized return on average assets for the six months was 0.71%, with a return
on average equity of 7.85%.

Total assets at June 30, 2004 were $368.1 million, with loan and lease
receivables of $280.6 million, deposits of $280.0 million, borrowings of $51.6
million, and stockholders' equity of $34.7 million.  Total assets increased
50.2% or $123.1 million, from June 30, 2003, loan and lease receivables
increased 50.4% or $94.0 million, deposits increased 41.6% or $82.3 million and
borrowings increased 124.1% or $28.6 million.  The acquisition of First
National Bank of the Carolinas of Gaffney, South Carolina added assets of $82.7
million, total loans of $56.1 million and deposits and $61.3 million at April
15, 2004.  "All of us at American Community Bancshares are especially pleased
with the acquisition of First National Bank of the Carolinas and the addition
of our new branches in Gaffney and Blacksburg, South Carolina. We are very
excited about the opportunities that exist for expansion into the South
Carolina markets," said Randy Helton, President and Chief Executive Officer of
American Community Bancshares, Inc.

The allowance for loan losses represented 1.20% of total loans at June 30,
2004.  Non-performing loans totaled $378,000 or 0.13% of loans at June 30, 2004
compared to $91,000 or 0.05% of loans at June 30, 2003, a $287,000 or a 315%
increase.  Non-performing assets (which includes foreclosed real estate and
repossessed assets) totaled $527,000 at June 30, 2004 and represented 0.14% of
total assets compared to $281,000 or 0.11% of total assets at June 30, 2003, a
$246,000 or 87.5% increase.

Net interest income for the quarter ended June 30, 2004 totaled $2.9 million,
an increase of 52.6% over the $1.9 million for the quarter ended June 30, 2003.
 Quarter-end results also include a $137,000 or 18.4% increase in non-interest
income from $745,000 for the three months ended June 30, 2003 to $882,000 for
the three months ended June 30, 2004.  In addition, operating expenses
increased $731,000 or 36.8% from $1.9 million for the three months ended June
30, 2003 to $2.6 million for the three months ended June 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 [phone].

   American Community Bancshares, Inc.
   (Amounts in thousands except per share data)
   (Unaudited)
   Consolidated Balance Sheet             June 30,   March 31,  December 31,
                                            2004        2004      2003 (a)
   Assets
   Cash and due from banks                   $5,960      $9,351      $7,330
   Interest-earning deposits with banks       5,774       7,520      11,012
   Investment securities                     51,488      48,908      52,069

   Loans                                    283,995     212,066     204,533
   Allowance for loan losses                 (3,413)     (2,645)     (2,529)
             Net loans                      280,582     209,421     202,004

   Accrued interest receivable                1,407       1,184       1,131
   Bank premises and equipment                8,284       5,267       5,339
   Foreclosed real estate                       122          21         117
   Federal Home Loan Bank stock               1,088         672         792
   Goodwill                                  10,125         -           -
   Other assets                               3,285       1,774       1,459

             Total assets                  $368,115    $284,118    $281,253

   Liabilities and stockholders' equity
   Deposits
   Non-interest bearing                     $41,718     $35,638     $29,782
   Interest bearing                         238,277     175,195     178,381
             Total deposits                 279,995     210,833     208,163

   Borrowings                                51,578      47,928      48,319
   Accrued expenses and other
    liabilities                               1,865         851         582
             Total liabilities              333,438     259,612     257,064

   Total stockholders' equity                34,677      24,506      24,189

   Total liabilities and stockholders'
    equity                                 $368,115    $284,118    $281,253

   Ending shares outstanding              3,446,753   2,827,709   2,825,709
   Book value per share                       10.06        8.67        8.56

   (a) Derived from audited financial statements


   American Community Bancshares, Inc.
   (Amounts in thousands except per share data)
   (Unaudited)
   Consolidated Balance Sheet                  September 30,        June 30,
                                                   2003               2003
   Assets
   Cash and due from banks                         $6,274            $7,846
   Interest-earning deposits with banks             3,205             1,116
   Investment securities                           54,425            40,842

   Loans                                          200,102           188,853
   Allowance for loan losses                       (2,426)           (2,286)
             Net loans                            197,676           186,567

   Accrued interest receivable                      1,084             1,060
   Bank premises and equipment                      5,271             5,197
   Foreclosed real estate                             -                  94
   Federal Home Loan Bank stock                       792               792
   Goodwill                                           -                 -
   Other assets                                     1,780             1,462

             Total assets                        $270,507          $244,976

   Liabilities and stockholders' equity
   Deposits
   Non-interest bearing                           $31,721           $25,084
   Interest bearing                               176,069           172,659
             Total deposits                       207,790           197,743

   Borrowings                                      38,156            23,021
   Accrued expenses and other
    liabilities                                       768               716
             Total liabilities                    246,714           221,480

   Total stockholders' equity                      23,793            23,496

   Total liabilities and stockholders'
    equity                                       $270,507          $244,976

   Ending shares outstanding                    2,824,376         2,824,376
   Book value per share                              8.42              8.32

   (a) Derived from audited financial statements


   American Community Bancshares, Inc.
   Consolidated Income Statements
   (Amounts in thousands except per share data)
   (Unaudited)
                                         June 30,    March 31,  December 31,
   Three months ended                      2004        2004         2003

   Total interest income                    $4,421      $3,534      $3,458
   Total interest expense                    1,492       1,346       1,274
        Net interest income                  2,929       2,188       2,184

   Provision for loan losses                   140         118         148
   Net interest income after
        provision for loan loss              2,789       2,070       2,036

   Non-interest income
        Service charges on deposit
         accounts                              585         465         372
        Mortgage banking operations            108          66          72
        Realized gains on sale of
         securities                            -            58         -
        Other                                  189         113          98
   Total non-interest income                   882         702         542

   Non-interest expense
        Salaries and employee benefits       1,316       1,011       1,022
        Occupancy and equipment                440         369         409
        Other                                  874         634         665
   Total non-interest expense                2,630       2,014       2,096

   Income before income taxes                1,041         758         482
   Provision for income taxes                  386         283         175

   Net income                                 $655        $475        $307

   Net income per share
        Basic                                $0.20       $0.17       $0.11
        Diluted                              $0.18       $0.15       $0.10

   Weighted average number of shares
    outstanding
        Basic                            3,344,713   2,826,039   2,824,376
        Diluted                          3,703,920   3,145,162   3,053,723

   Return on average equity                  8.16%       7.84%       5.12%
   Return on average assets                  0.73%       0.69%       0.45%

   Net interest margin                       3.46%       3.38%       3.42%

   Allowance for loan losses to total
    loans                                    1.20%       1.25%       1.24%
   Net charge-offs to avg loans
    (annualized)                             0.09%       0.00%       0.27%
   Nonperforming loans to total loans        0.13%       0.13%       0.16%
   Nonperforming assets to total assets      0.14%       0.12%       0.17%


   American Community Bancshares, Inc.
   Consolidated Income Statements
   (Amounts in thousands except per share data)
   (Unaudited)
                                              September 30,        June 30,
   Three months ended                             2003               2003

   Total interest income                          $3,304            $3,263
   Total interest expense                          1,287             1,342
         Net interest income                       2,017             1,921

   Provision for loan losses                         144               127
   Net interest income after
         provision for loan loss                   1,873             1,794

   Non-interest income
         Service charges on deposit
          accounts                                   420               481
         Mortgage banking operations                 142               163
         Realized gains on sale of
          securities                                   -                 -
         Other                                       116               101
   Total non-interest income                         678               745

   Non-interest expense
         Salaries and employee benefits              975             1,003
         Occupancy and equipment                     355               302
         Other                                       562               594
   Total non-interest expense                      1,892             1,899

   Income before income taxes                        659               640
   Provision for income taxes                        247               234

   Net income                                       $412              $406

   Net income per share
         Basic                                     $0.15             $0.14
         Diluted                                   $0.14             $0.14

   Weighted average number of shares
    outstanding
         Basic                                 2,824,376         2,824,376
         Diluted                               2,900,162         2,859,066

   Return on average equity                        7.00%             6.98%
   Return on average assets                        0.66%             0.68%

   Net interest margin                             3.43%             3.42%

   Allowance for loan losses to total
    loans                                          1.21%             1.21%
   Net charge-offs to avg loans
    (annualized)                                   0.00%            -0.07%
   Nonperforming loans to total loans              0.13%             0.05%
   Nonperforming assets to total assets            0.12%             0.15%


DATASOURCE: American Community Bancshares, Inc.



CONTACT:  Stephanie Helms, Shareholder Relations, or Dan Ellis, CFO, of

American Community Bancshares, Inc., [phone]

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