American Community Bancshares 8-K Results of Operations and Financial Condition

Exhibit 99.1

PRESS RELEASE

FOR IMMEDIATE RELEASE

April 19, 2005

American Community Bancshares, Inc. Announces Earnings for the Quarter Ended March 31, 2005

Charlotte, North Carolina, – Randy P. Helton, President and Chief Executive Officer of American Community Bancshares, Inc. (stock NASDAQ SmallCap: ACBA; stock warrants NASDAQ SmallCap: ACBAW) the holding company for American Community Bank (ACB) and First National Bank of the Carolinas (FNB), announced higher unaudited earnings for the three months ended March 31, 2005 of $1,048,000 or a 120.6% increase over unaudited earnings for the three months ended March 31, 2004 of $475,000. The FNB acquisition accounted for $256,000 of the $573,000 increase in earnings. Earnings per share (diluted) for the three months ended March 31, 2005 increased to $0.26 compared to $0.15 for the three months ended March 31, 2004. The annualized return on average assets for the quarter was 1.05% with an annualized return on average equity of 11.11%.

Total assets at March 31, 2005 were $402.1 million, with loan and lease receivables of $309.4 million, deposits of $314.5 million, borrowings of $46.5 million, and stockholders’ equity of $39.5 million. Total assets increased 41.5% or $118.0 million, from March 31, 2004, loan and lease receivables increased 47.7% or $100.0 million, deposits increased 49.2% or $103.7 million and borrowings decreased 2.9% or $1.4 million. The acquisition of FNB of Gaffney, South Carolina added assets of $82.7 million, total loans of $56.2 million and deposits of $61.3 million at April 15, 2004.

The allowance for loan losses represented 1.14% of total loans at March 31, 2005. Non-performing loans, the majority of which are secured by real estate, totaled $759,000 or 0.24% of loans at March 31, 2005 compared to $280,000 or 0.13% of loans at March 31, 2004, a $479,000 or a 171% increase. The FNB acquisition accounted for $73,000 of the increase in non-performing loans. Non-performing assets (which includes foreclosed real estate and repossessed assets) totaled $1,092,000 at March 31, 2005 and represented 0.27% of total assets compared to $353,000 or 0.12% of total assets at March 31, 2004, a $739,000 or 209.3% increase. The FNB acquisition accounted for $118,000 of the increase in non-performing assets.

Net interest income for the quarter ended March 31, 2005 totaled $3.7 million, an increase of 69% over the $2.2 million for the quarter ended March 31, 2004. Primarily as a result of Federal Reserve rate increases, the Company’s net interest margin continued to improve increasing to 4.03% for the quarter ended March 31, 2005 from 3.97% for the quarter ended December 31, 2004. Currently approximately 63% of the loan portfolio is floating rate and adjusts with movements in the bank’s prime lending rate. Quarter-end results also include a $45,000 or 6.4% increase in non-interest income from $702,000 for the three months ended March 31, 2004 to $747,000 for the three months ended March 31, 2005. In addition, operating expenses increased $634,000 or 31.5% from $2.0 million for the three months ended March 31, 2004 to $2.6 million for the three months ended March 31, 2005. The FNB acquisition accounted for $542,000 of this increase.

American Community Bancshares, headquartered in Charlotte, NC is the holding company for American Community Bank and First National Bank of the Carolinas which was merged into American Community Bank after the close of business on March 31, 2005. 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 and three offices in Cherokee County, SC. Two additional branches, one in the South End area of Mecklenburg County, NC and one in the Tega Cay area of York County, SC, are under construction and are expected to open during the second quarter of 2005. The Bank provides a wide assortment of traditional banking and financial services offered with a high level of personal attention. American Community Bancshares website iswww.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 (704) 225- 8444.

American Community Bancshares, Inc.

(Amounts in thousands except share and per share data)

(Unaudited)

Consolidated Balance Sheet

	March 31, 2005			December 31, 2004 (a)			September 30, 2004			June 30, 2004			March 31, 2004
Assets
Cash and due from banks	$	11,478		$	9,511		$	7,448		$	5,960		$	9,351
Interest-earning deposits with banks		5,833			6,521			10,608			5,774			7,520
Investment securities		49,680			54,019			46,769			51,488			48,908
Loans		312,970			307,988			290,398			283,995			212,066
Allowance for loan losses		(3,562	)		(3,488	)		(3,478	)		(3,413	)		(2,645	)
Net loans		309,408			304,500			286,920			280,582			209,421
Accrued interest receivable		1,842			1,697			1,537			1,407			1,184
Bank premises and equipment		9,171			8,741			8,263			8,284			5,267
Foreclosed real estate		221			311			214			122			21
Non-marketable equity securities at cost		2,139			2,040			1,392			1,088			672
Goodwill		9,838			9,838			10,149			10,125			—
Other assets		2,492			2,280			2,272			3,285			1,774
Total assets	$	402,102		$	399,458		$	375,572		$	368,115		$	284,118
Liabilities and stockholders' equity
Deposits
Non-interest bearing	$	46,120		$	45,501		$	40,977		$	41,718		$	35,638
Interest bearing		268,377			261,164			244,208			238,277			175,195
Total deposits		314,497			306,665			285,185			279,995			210,833
Borrowings		46,521			54,169			52,164			51,578			47,928
Accrued expenses and other liabilities		1,626			1,652			1,946			1,865			851
Total liabilities		362,644			362,486			339,295			333,438			259,612
Total stockholders' equity		39,458			36,972			36,277			34,677			24,506
Total liabilities and stockholders' equity	$	402,102		$	399,458		$	375,572		$	368,115		$	284,118
Ending shares outstanding		3,706,806			3,489,249			3,471,228			3,446,753			2,827,709
Book value per share		10.64			10.60			10.45			10.06			8.67

(a) Derived from audited consolidated financial statements

American Community Bancshares, Inc.

Consolidated Income Statements

(Amounts in thousands except share and per share data)

(Unaudited)

Three months ended	March 31, 2005			December 31, 2004 (a)			September 30, 2004			June 30, 2004			March 31, 2004
Total interest income	$	5,672		$	5,290		$	4,971		$	4,421		$	3,534
Total interest expense		1,981			1,780			1,602			1,492			1,346
Net interest income		3,691			3,510			3,369			2,929			2,188
Provision for loan losses		109			158			157			140			118
Net interest income after provision for loan loss		3,582			3,352			3,212			2,789			2,070
Non-interest income
Service charges on deposit accounts		513			628			628			585			465
Mortgage banking operations		88			119			71			108			66
Realized gains on sale of securities		10			7			41			—			58
Other		136			130			129			189			113
Total non-interest income		747			884			869			882			702
Non-interest expense
Salaries and employee benefits		1,350			1,255			1,278			1,316			1,011
Occupancy and equipment		485			472			474			440			369
Other		813			1,441			836			874			634
Total non-interest expense		2,648			3,168			2,588			2,630			2,014
Income before income taxes		1,681			1,068			1,493			1,041			758
Provision for income taxes		633			392			556			386			283
Net income	$	1,048		$	676		$	937		$	655		$	475
Net income per share
Basic	$	0.29		$	0.19		$	0.27		$	0.20		$	0.17
Diluted	$	0.26		$	0.17		$	0.25		$	0.18		$	0.15
Weighted average number of shares outstanding
Basic		3,598,295			3,472,863			3,453,019			3,344,713			2,826,039
Diluted		4,055,590			3,989,045			3,784,314			3,703,920			3,145,162
Return on average equity		11.11	%		7.36	%		10.55	%		8.16	%		7.84	%
Return on average assets		1.05	%		0.70	%		1.00	%		0.73	%		0.69	%
Net interest margin		4.03	%		3.97	%		3.97	%		3.46	%		3.38	%
Allowance for loan losses to total loans		1.14	%		1.13	%		1.20	%		1.20	%		1.25	%
Net charge-offs to avg loans (annualized)		0.01	%		0.20	%		0.13	%		0.09	%		0.00	%
Nonperforming loans to total loans		0.24	%		0.29	%		0.31	%		0.13	%		0.13	%
Nonperforming assets to total assets		0.27	%		0.30	%		0.30	%		0.14	%		0.12	%