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

Exhibit 99.1

PRESS RELEASE

FOR IMMEDIATE RELEASE

For Further Information Contact

American Community Bancshares, Inc.

Mr. Randy P. Helton, President and CEO

Phone: 704-225-8444

AMERICAN COMMUNITY BANCSHARES, INC. ANNOUNCES

RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2006

October 27, 2006. Charlotte, North Carolina: American Community Bancshares, Inc. (NASDAQ Stock Market: ACBA), the holding company for American Community Bank, announced unaudited earnings for the three months ended September 30, 2006 of $611,000, a decrease of $574,000 or 48.4% from unaudited earnings for the same period in 2005. This decline was largely due to a $1.5 million provision for loan and lease losses directly attributable to the Company’s leasing operations which we discontinued earlier in 2006. Unaudited net interest income for the quarter increased to $4.7 million from $4.3 million for the same period in 2005, an increase of 8%. The Company reported unaudited non-interest income of $862,000 for the quarter ended September 30, 2006, an increase of approximately 4% over the comparable period in 2005.

Unaudited earnings for the nine months ended September 30, 2006 were $2,850,000, a $449,000 or 13.6% decrease over unaudited earnings for the nine months ended September 30, 2005 of $3,299,000. Earnings per share (diluted) for the nine months ended September 30, 2006 decreased to $0.40 compared to $0.51 for the nine months ended September 30, 2005 partly as a result of a 658,000 increase in average shares outstanding during the period due to the exercise of warrants to purchase shares of common stock during the second quarter of 2005. The Company’s annualized return on average assets for the nine months ended September 30, 2006 was 0.83% with a return on average equity of 7.29%.

Total assets as of September 30, 2006 were $483.4 million, compared to $443.2 million at September 30, 2005, an increase of $40.2 million or 9.1%. The Company also experienced similar gains in loans and deposits. Total loans were $362.0 million, an increase of $33.5 million or 10.2%, over the $328.5 million reported for the same period in 2005. Total deposits were $386.6 million, an increase of $31.9 million or 9.0% over third quarter 2005 deposits of $354.7 million. Asset quality improved on a linked quarter basis, as nonperforming assets decreased to $3.0 million or 0.62% of assets in the 2006 third quarter from $3.6 million or 0.78% of assets in the 2006 second quarter. Nonperforming loans decreased by $844,000 to $1.1 million at September 30, 2006 from $1.9 million at June 30, 2006.

Randy P. Helton, President and Chief Executive Officer commented: “The third quarter of 2006 continued to show strong fundamentals with our net interest margin at 4.25%, an increase of loans and deposits of approximately 10%, and an efficiency ratio of 56.0%. We did however record a $1.5 million provision in the third quarter primarily related to our leasing portfolio. We are aggressively pursuing collections by liquidating the underlying collateral and seeking payment from lease guarantors. As previously reported last quarter, we discontinued operations of the leasing business and have outsourced the remaining portfolio servicing to a third party. Consequently, the lease portfolio will continue to decline in size. Our core business continues to be strong and our goal is to continue to keep growing our Company in order to bring solid returns for our shareholders.”

American Community Bancshares, Inc., headquartered in Charlotte, North Carolina is the holding company for American Community Bank. American Community Bank is a full service community bank headquartered in Monroe, North Carolina with nine North Carolina offices located in two of the fastest growing counties in North Carolina, Mecklenburg and Union. It also has four offices located in York and Cherokee Counties in South Carolina. American Community Bank provides a wide assortment of traditional banking and financial services offered with a high level of personal attention. The website for American Community Bancshares, Inc. is www.americancommunitybank.com. Its stock is traded on the NASDAQ National Market under the symbol “ACBA”. For more information contact: Stephanie Helms, Shareholder Relations or Dan Ellis, Chief Financial Officer at (704) 225- 8444.

Information in this press release contains “forward-looking statements.” These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates and the effects of competition. Additional factors that could cause actual results to differ materially are discussed in American Community Bancshares’s recent filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K and its other periodic reports.

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American Community Bancshares, Inc.

(Amounts in thousands except share and per share data)

(Unaudited)

Consolidated Balance Sheet

	September 30, 2006			June 30, 2006			March 31, 2006			December 31, 2005 (a)			September 30, 2005
Assets
Cash and due from banks	$	15,268		$	16,057		$	13,646		$	12,495		$	16,226
Interest-earning deposits with banks		11,357			326			10,087			4,454			10,920
Investment securities		66,239			65,309			62,842			64,307			60,635
Loans		368,020			357,134			350,516			332,708			332,447
Allowance for loan losses		(5,987	)		(5,041	)		(4,528	)		(4,331	)		(3,968	)
Net loans		362,033			352,093			345,988			328,377			328,479
Accrued interest receivable		2,811			2,576			2,527			2,432			2,187
Bank premises and equipment		9,286			9,328			9,467			9,660			9,812
Foreclosed real estate		283			258			91			386			112
Non-marketable equity securities at cost		2,187			2,062			2,062			1,996			1,996
Goodwill		9,838			9,838			9,838			9,838			9,838
Other assets		4,112			2,925			3,294			2,726			3,023
Total assets	$	483,414		$	460,772		$	459,842		$	436,671		$	443,228
Liabilities and stockholders’ equity
Deposits
Non-interest bearing	$	58,806		$	56,125		$	57,276		$	58,054		$	52,735
Interest bearing		327,758			305,268			309,302			287,347			301,982
Total deposits		386,564			361,393			366,578			345,401			354,717
Borrowings		41,556			46,116			39,885			38,464			36,531
Accrued expenses and other liabilities		1,480			659			1,761			1,920			1,840
Total liabilities		429,600			408,168			408,224			385,785			393,088
Total stockholders’ equity		53,814			52,604			51,618			50,886			50,140
Total liabilities and stockholders’ equity	$	483,414		$	460,772		$	459,842		$	436,671		$	443,228
Ending shares outstanding		6,963,663			6,921,554			6,853,240			6,853,010			6,812,600
Book value per share		7.73			7.60			7.53			7.43			7.36
Average Balances:
Loans	$	361,216		$	351,815		$	338,525		$	329,267		$	327,946
Earning assets		436,391			419,346			414,294			408,788			394,068
Total assets		474,706			457,689			446,991			437,485			427,443
Interest-bearing deposits		312,189			296,171			296,171			296,918			290,565
Stockholders’ equity		53,364			52,163			51,457			50,536			49,696

(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	September 30, 2006			June 30, 2006			March 31, 2006			December 31, 2005 (a)			September 30, 2005
Total interest income	$	8,320		$	7,932		$	7,328		$	7,112		$	6,797
Total interest expense		3,646			3,180			2,797			2,615			2,468
Net interest income		4,674			4,752			4,531			4,497			4,329
Provision for loan losses		1,530			668			272			294			224
Net interest income after provision for loan loss		3,144			4,084			4,259			4,203			4,105
Non-interest income
Service charges on deposit accounts		616			601			562			609			598
Mortgage banking operations		83			106			81			77			87
Realized gains on sale of securities		35			—			25			—			—
Other		128			162			159			152			144
Total non-interest income		862			869			827			838			829
Non-interest expense
Salaries and employee benefits		1,512			1,855			1,529			1,466			1,523
Occupancy and equipment		560			560			571			569			569
Other		1,033			1,034			923			1,100			971
Total non-interest expense		3,105			3,449			3,023			3,135			3,063
Income before income taxes		901			1,504			2,063			1,906			1,871
Provision for income taxes		290			572			756			697			686
Net income	$	611		$	932		$	1,307		$	1,209		$	1,185
Net income per share
Basic	$	0.09		$	0.14		$	0.19		$	0.18		$	0.17
Diluted	$	0.09		$	0.13		$	0.18		$	0.17		$	0.17
Weighted average number of shares outstanding
Basic		6,929,474			6,876,336			6,853,240			6,833,259			6,804,662
Diluted		7,173,914			7,176,336			7,156,948			7,134,699			7,130,129
Return on average equity		4.59	%		7.17	%		10.30	%		9.49	%		9.46	%
Return on average assets		0.52	%		0.82	%		1.19	%		1.10	%		1.10	%
Net interest margin		4.25	%		4.59	%		4.44	%		4.36	%		4.36	%
Efficiency ratio		56.09	%		61.36	%		56.42	%		58.76	%		59.38	%
Non-accrual loans	$	1,078		$	1,922		$	480		$	469		$	887
Non-accrual leases		1,568			1,277			599			482			136
Other non-performing assets		340			394			155			478			232
Allowance for loan losses to total loans		1.63	%		1.41	%		1.29	%		1.30	%		1.19	%
Net charge-offs to avg loans (annualized)		0.63	%		0.13	%		0.02	%		-0.24	%		0.01	%
Nonperforming loans to total loans		0.72	%		0.90	%		0.31	%		0.29	%		0.31	%
Nonperforming assets to total assets		0.62	%		0.78	%		0.27	%		0.33	%		0.28	%