Protecting your privacy is important to American Community Bank (referred to as "we", "us", or "our"). We want you to understand what information we collect and how we use it. In order to provide our customers with a broad range of financial products and services as effectively and conveniently as possible, we use technology to manage and maintain customer information. The following policy serves as a standard for all our employees for the collection, use, retention, and security of non-public personal information. The affiliates we make references to in this policy are companies within the American Community family, which includes:

• American Community Bancshares, Inc., our holding company
• American Community Bank
• American Community Leasing

Important Definitions

Nonpublic personal information means information about you that we collect in connection with providing a financial product or service to you. Nonpublic personal information does not include information that is available from public sources, such as telephone directories or government records. Hereafter, we will use the term information” to mean nonpublic personal information as defined in this section.

An affiliate is a company we own or control, a company that owns or controls us, or a company that is owned or controlled by the same company that owns or controls us. Ownership does not mean complete ownership, but means owning enough to have control.

A nonaffiliated third party is a person we do not employ or a company that is not an affiliate of ours. This is also known as nonaffiliated third party, or simply, an “other party.”

Information We Collect, Retain and Disclose

American Community Bank will share personal or financial customer information for both current and former customers with unaffiliated third parties when legally required or when legally permitted to serve the customer’s interests and to provide operational support throughout our bank. We collect nonpublic personal information about you from the following sources:

• Information we receive from you on loan and deposit applications or other forms, such as your name, address, social security number, assets and income;
• Information related to your transactions or account experiences with us, our affiliates, or others such as your account balances, payment histories, parties to transactions;
• Information received from a consumer-reporting agency, such as your creditworthiness and credit history; and
• Information received from a third party, such as employment history and asset verification.

We may disclose all the information we collect, as described above, to our affiliates. Some of the date we collect is used to protect your privacy and to secure your account information by allowing us to positively identify you as our customer, preventing access to unauthorized individuals.

From time to time, we carefully select business associates (other financial institutions and companies with whom we have joint marketing agreements) to provide our customers with specialized financial services, such as mortgages, insurance, investments or credit card services. Although these partners are not owned by, or affiliated with us, they work closely with us to help us deliver or update you regarding our products and services designed to meet your financial needs. American Community Bank will not knowingly do business with any unaffiliated third party provider or company that uses or sells this type of information for marketing purposes other than our own. The types of information we share with them are as follows:

• Identification information, such as name, address, telephone numbers;
• Transaction experience information, such as account balances, payment histories, and parties to the transaction.

Our marketing associates must contractually agree to safeguard the confidentiality of customer information, and they are not authorized to disclose this information to anyone else without our explicit permission, except as allowed by law. All of these companies work together to provide the services and accounts you want. With limited exceptions like those listed above, we do not provide confidential customer information to companies outside of our corporate family. You do not need to request this confidentiality; it is the standard practice of American Community Bank.

Right to Opt Out of Sharing Agreements

A consumer cannot opt out of all information sharing. We are allowed to transfer non-public personal information to unaffiliated parties to process and service a consumer's transaction, and to facilitate other normal business transactions. For example, you cannot opt out when non-public personal information is shared with a non-affiliated third party to:

• Market our own financial products or services;
• Market financial products or services offered by us and another financial institution (joint marketing);
• Process and service transactions the consumer requests or authorizes;
• Protect against potential fraud or unauthorized transactions;
• Respond to judicial process orders such as subpoenas; or
• Comply with federal, state, or local legal requirements

If you prefer that we not disclose non-public information about you to non-affiliated third parties for other purposes, you may opt out of those disclosures. You may direct us to not include your information available to non-affiliated third parties except as permitted by law. If you wish to opt out of disclosures to non-affiliated third parties, you may call us at (704) 225-8444 or notify us by e-mail at customerservice@americancommunitybank.com. You may also talk to a customer representative at a branch location or to a banking officer of your choice to request an opt out form or write to us at the corporate address listed at the bottom of this notice.

Under the Fair Credit Reporting Act, we are permitted by law to share with our affiliates information concerning your transactions and account experiences with us (such as your account balance and payment history). We may also share additional information about you or your account (such as information we receive from you on applications and information from credit reporting agencies) with our affiliates. If you wish to op out of the disclosures to our affiliates regarding your non-public personal information that does not solely relate to your transactions or experiences with us, you may call us at (704) 225-8444 or notify us by e-mail at customerservice@americancommunitybank.com. You may also talk to a customer representative at a branch location or to a banking officer of your choice to request an opt out form or write to us at the corporate address listed at the bottom of this notice.

When you contact us, please be prepared to provide the following information for each individual:

• First name, middle initial and last name
• Address, city, state and ZIP code
• Account or customer number
• Social Security number for verification purposes
• Telephone number (if applicable)
• E-mail address (if applicable)

Joint Accounts: If two or more customers jointly obtain a product or service from us (joint customers), we will treat an opt out instruction by one of the joint customers as applying to all associated joint consumers.

If you have already exercised your right to opt out in the past, you do not need to do so again. We will honor your request until you notify us in writing otherwise. If you choose to “opt out”, you may not receive notices of new products and services, or discounts for which you may be eligible. American Community Bank will continue to share transaction information and other general information not used for determining eligibility for a product or service among the American Community Bank, as permitted by law.

Our Policy About Former Customers

If you decide to close your account(s) or become an inactive customer, we will continue to adhere to the privacy policies and practices described in this notice.

Our Security Procedures

We restrict access to non-public personal information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal standards to guard your non-public personal information.

This privacy disclosure replaces any other customer privacy notices that you may have received from us. If we make any material change to this privacy disclosure we will inform you of those changes as required by law.

Corporate Privacy Contact Address

American Community Bank
ATTN: Privacy Officer
P.O. Box 5305
Monroe, NC 28111
Telephone (704) 225-8444
e-mail address customerservice@americancommunitybank.com