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

Exhibit 99.1

PRESS RELEASE

FOR IMMEDIATE RELEASE

April 24, 2006

American Community Bancshares, Inc. Announces Results for the Quarter Ended March 31, 2006

Charlotte, North Carolina, – Randy P. Helton, President and Chief Executive Officer of American Community Bancshares, Inc. (NASDAQ: ACBA) the holding company for American Community Bank (ACB), announced higher unaudited net income for the three months ended March 31, 2006 of $1,307,000 or a 25% increase over the unaudited net income for the three months ended March 31, 2005 of $1,048,000. Earnings per share (diluted) increased to $.18 compared to $0.17 for the three months ended March 31, 2005. The annualized return on average assets for the quarter was 1.19% compared to 1.05% for 2005 and the annualized return on average equity was 10.30% compared to 11.11% in 2005. The decrease in annualized return on average equity for the quarter is primarily attributable to an increase in outstanding shares from the exercise of warrants during the second quarter of 2005.

Total assets at March 31, 2006 were $459.8 million, with loan and lease receivables of $346.0 million, deposits of $366.6 million, borrowings of $39.9 million, and stockholders’ equity of $51.6 million. Total assets increased $57.7 million or 14.4% from March 31, 2005, loans increased $37.5 million or 12.0%, deposits increased $52.1 million or 16.6% and stockholders’ equity increased $12.2 million or 30.8%. The conversion of outstanding warrants issued in April 2002 accounted for $10.4 million of the increase in stockholders’ equity.

The allowance for loan losses represented 1.29% of total loans at March 31, 2006 compared to 1.14% at March 31, 2005. Non-performing loans totaled $1,079,000 or 0.31% of loans at March 31, 2006 compared to $759,000 or 0.24% of loans at March 31, 2005. Non-performing assets (which includes non-performing loans, foreclosed real estate and repossessed assets) totaled $1,234,000 at March 31, 2006 and represented 0.27% of total assets compared to $1,092,000 or 0.27% of total assets at March 31, 2005, a $142,000 or a 13.0% increase.

Net interest income for the quarter ended March 31, 2006 totaled $4.5 million, an increase of 22.8% over the $3.7 million for the quarter ended March 31, 2005. Primarily as a result of Federal Reserve

rate increases, the Company’s net interest margin continued to improve increasing to 4.44% for the quarter ended March 31, 2006 from 4.03% for the quarter ended March 31, 2005. Non-interest income for the quarter ended March 31, 2006 totaled $827,000, an increase of $80,000 or 10.7% from the quarter ended March 31, 2005. In addition, operating expenses increased $375,000 or 14.2% from $2.6 million for the quarter ended March 31, 2005 to $3.0 million for the quarter ended March 31, 2006 largely as a result of the opening of two new branches during the second quarter of 2005. The efficiency ratio for the quarter ended March 31, 2006 was 56.42% as compared to 59.67% for the quarter ended March 31, 2005.

American Community Bancshares, headquartered in Charlotte, NC is the holding company for American Community Bank. American Community Bank is a full service community bank, headquartered in Monroe, NC with nine North Carolina offices located in the fast growing Union and Mecklenburg counties and four South Carolina offices located in York and Cherokee counties. 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 National market under the symbol “ACBA”. 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, 2006			December 31, 2005 (a)			September 30, 2005			June 30, 2005			March 31, 2005
Assets
Cash and due from banks	$	13,646		$	12,495		$	16,226		$	13,518		$	11,478
Interest-earning deposits with banks		10,087			4,454			10,920			2,970			5,833
Investment securities		62,842			64,307			60,635			53,253			49,680
Loans		350,516			332,708			332,447			326,266			312,970
Allowance for loan losses		(4,528	)		(4,331	)		(3,968	)		(3,738	)		(3,562	)
Net loans		345,988			328,377			328,479			322,528			309,408
Accrued interest receivable		2,527			2,432			2,187			1,915			1,842
Bank premises and equipment		9,467			9,660			9,812			10,032			9,171
Foreclosed real estate		91			386			112			176			221
Non-marketable equity securities at cost		2,062			1,996			1,996			1,996			2,139
Goodwill		9,838			9,838			9,838			9,838			9,838
Other assets		3,294			2,726			3,023			3,116			2,492
Total assets	$	459,842		$	436,671		$	443,228		$	419,342		$	402,102
Liabilities and stockholders’ equity
Deposits
Non-interest bearing	$	57,276		$	58,054		$	52,735		$	51,702		$	46,120
Interest bearing		309,302			287,347			301,982			278,188			268,377
Total deposits		366,578			345,401			354,717			329,890			314,497
Borrowings		39,885			38,464			36,531			39,049			46,521
Accrued expenses and other liabilities		1,761			1,920			1,840			1,218			1,626
Total liabilities		408,224			385,785			393,088			370,157			362,644
Total stockholders’ equity		51,618			50,886			50,140			49,185			39,458
Total liabilities and stockholders’ equity	$	459,842		$	436,671		$	443,228		$	419,342		$	402,102
Ending shares outstanding		6,853,240			6,853,010			6,812,600			6,800,450			5,560,209
Book value per share		7.53			7.43			7.36			7.23			7.10
Average Balances:
Loans	$	338,525		$	329,267		$	327,946		$	311,642		$	307,256
Earning assets		414,294			408,788			394,068			370,682			371,854
Total assets		446,991			437,485			427,443			403,842			404,112
Interest-bearing deposits		296,171			296,918			290,565			274,903			269,816
Stockholders’ equity		51,457			50,536			49,696			45,537			38,279

(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, 2006			December 31, 2005			September 30, 2005			June 30, 2005			March 31, 2005
Total interest income	$	7,328		$	7,112		$	6,797		$	6,003		$	5,672
Total interest expense		2,797			2,615			2,468			2,116			1,981
Net interest income		4,531			4,497			4,329			3,887			3,691
Provision for loan losses		272			294			224			182			109
Net interest income after provision for loan loss		4,259			4,203			4,105			3,705			3,582
Non-interest income
Service charges on deposit accounts		562			609			598			585			513
Mortgage banking operations		81			77			87			133			88
Realized gains on sale of securities		25			—			—			—			10
Other		159			152			144			162			136
Total non-interest income		827			838			829			880			747
Non-interest expense
Salaries and employee benefits		1,529			1,466			1,523			1,400			1,350
Occupancy and equipment		571			569			569			527			485
Other		923			1,100			971			969			813
Total non-interest expense		3,023			3,135			3,063			2,896			2,648
Income before income taxes		2,063			1,906			1,871			1,689			1,681
Provision for income taxes		756			697			686			623			633
Net income	$	1,307		$	1,209		$	1,185		$	1,066		$	1,048
Net income per share
Basic	$	0.19		$	0.18		$	0.17		$	0.17		$	0.19
Diluted	$	0.18		$	0.17		$	0.17		$	0.16		$	0.17
Weighted average number of shares outstanding
Basic		6,853,240			6,833,259			6,804,662			6,401,366			5,397,443
Diluted		7,156,948			7,134,699			7,130,129			6,693,972			6,083,385
Return on average equity		10.30	%		9.49	%		9.46	%		9.39	%		11.11	%
Return on average assets		1.19	%		1.10	%		1.10	%		1.06	%		1.05	%
Net interest margin		4.44	%		4.36	%		4.36	%		4.21	%		4.03	%
Efficiency ratio		56.42	%		58.76	%		59.38	%		60.75	%		59.67	%
Allowance for loan losses to total loans		1.29	%		1.30	%		1.19	%		1.15	%		1.14	%
Net charge-offs to avg loans (annualized)		0.02	%		-0.24	%		0.01	%		0.01	%		0.01	%
Nonperforming loans to total loans		0.31	%		0.29	%		0.31	%		0.23	%		0.24	%
Nonperforming assets to total assets		0.27	%		0.33	%		0.28	%		0.24	%		0.27	%