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

RECORD RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2006

January 24, 2007. Charlotte, North Carolina: American Community Bancshares, Inc. (NASDAQ Stock Market: ACBA), the holding company for American Community Bank, announced record unaudited earnings for the three months ended December 31, 2006 of $1,425,000, an increase of $216,000 or 17.9% from unaudited earnings for the same period in 2005. Unaudited net interest income for the quarter increased to $4.9 million from $4.5 million for the same period in 2005, an increase of 8.0%. The Company reported unaudited non-interest income of $795,000 for the quarter ended December 31, 2006, a decrease of approximately 5.1% over the comparable period in 2005.

Unaudited earnings for the year ended December 31, 2006 were $4,276,000, a $232,000 or 5.2% decrease over unaudited earnings for the year ended December 31, 2005 of $4,508,000. Earnings per share (diluted) for the year ended December 31, 2006 decreased to $.60 compared to $.66 for the year ended December 31, 2005. Both decreases are primarily due to previously disclosed loan loss provisions in 2006 related to the Company’s discontinued leasing operations. The Company’s annualized return on average assets for the year ended December 31, 2006 was 0.91% with a return on average equity of 8.08%.

Total assets as of December 31, 2006 were $495.1 million, compared to $436.7 million at December 31, 2005, an increase of $58.4 million or 13.4%. The Company also experienced similar gains in loans and deposits. Total loans were $364.8 million, an increase of $36.4 million or 11.1%, over the $328.4 million reported at December 31, 2005. Total deposits were $401.1 million, an increase of $55.7 million or 16.1% over fourth quarter 2005 deposits of $345.4 million. Asset quality improved on a linked quarter basis, as nonperforming assets decreased to

$2.0 million or 0.41% of assets in the fourth quarter of 2006 from $3.0 million or 0.62% of assets in the third quarter of 2006 continuing the positive trend in problem assets.

Randy P. Helton, President and Chief Executive Officer commented: “We are pleased to be able to report record fourth quarter earnings of over $1.4 million. Our net interest margin remains stable at 4.28% and we continue to maintain an efficiency ratio in the mid 50% range. For the quarter our return on average equity was 10.35% and return on average assets was 1.15%. We have made significant progress in reducing our non-performing assets which decreased by almost $1.0 million from the third quarter. Our lease portfolio, which contributed to our large second and third quarter loan loss provisions, has decreased to about $8.3 million or less than 2.5% of our total loan portfolio. We are excited about the strong finish to 2006 and look forward to a solid 2007. 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. iswww.americancommunitybank.com. Its stock is traded on the NASDAQ Global Market under the symbol “ACBA”. For more information contact: Stephanie Helms, Shareholder Relations or Dan Ellis, Chief Financial Officer at (704) 225- 8444.

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

	December 31, 2006			September 30, 2006			June 30, 2006			March 31, 2006			December 31, 2005 (a)
Assets
Cash and due from banks	$	19,950		$	15,268		$	16,057		$	13,646		$	12,495
Interest-earning deposits with banks		17,295			11,357			326			10,087			4,454
Investment securities		65,192			66,239			65,309			62,842			64,307
Loans		370,431			368,020			357,134			350,516			332,708
Allowance for loan losses		(5,628	)		(5,987	)		(5,041	)		(4,528	)		(4,331	)
Net loans		364,803			362,033			352,093			345,988			328,377
Accrued interest receivable		2,938			2,811			2,576			2,527			2,432
Bank premises and equipment		9,105			9,286			9,328			9,467			9,660
Foreclosed real estate		195			283			258			91			386
Non-marketable equity securities at cost		1,879			2,187			2,062			2,062			1,996
Goodwill		9,838			9,838			9,838			9,838			9,838
Other assets		3,876			4,112			2,925			3,294			2,726
Total assets	$	495,071		$	483,414		$	460,772		$	459,842		$	436,671
Liabilities and stockholders’ equity
Deposits
Non-interest bearing	$	61,735		$	58,806		$	56,125		$	57,276		$	58,054
Interest bearing		339,402			327,758			305,268			309,302			287,347
Total deposits		401,137			386,564			361,393			366,578			345,401
Borrowings		37,085			41,556			46,116			39,885			38,465
Accrued expenses and other liabilities		1,781			1,480			659			1,761			1,919
Total liabilities		440,003			429,600			408,168			408,224			385,785
Total stockholders’ equity		55,068			53,814			52,604			51,618			50,886
Total liabilities and stockholders’ equity	$	495,071		$	483,414		$	460,772		$	459,842		$	436,671
Ending shares outstanding		7,008,081			6,963,663			6,921,554			6,853,240			6,853,010
Book value per share		7.86			7.73			7.60			7.53			7.43
Average Balances:
Loans	$	360,877		$	361,216		$	351,815		$	338,525		$	329,267
Earning assets		450,244			436,391			419,346			414,294			408,788
Total assets		491,385			474,706			457,689			446,991			437,485
Interest-bearing deposits		332,523			312,189			296,171			296,171			296,918
Stockholders’ equity		54,599			53,364			52,163			51,457			50,536

(a) Derived from audited consolidated financial statements

American Community Bancshares, Inc.

(Amounts in thousands except per share data)

(Unaudited)

Consolidated Income Statements

	Three Months Ended December 31,				Year ended December 31,
	2006		2005		2006		2005 (a)
Total interest income	$	8,754	$	7,112	$	32,334	$	25,584
Total interest expense		3,898		2,615		13,521		9,180
Net interest income		4,856		4,497		18,813		16,404
Provision for loan losses		188		294		2,657		809
Net interest income after provision for loan losses		4,668		4,203		16,156		15,595
Non-interest income
Service charges on deposit accounts		615		609		2,393		2,305
Mortgage banking operations		81		77		352		385
Realized gains on sale of securities		—		—		60		10
Other		99		152		548		594
Total non-interest income		795		838		3,353		3,294
Non-interest expense
Salaries and employee benefits		1,577		1,466		6,474		5,739
Occupancy and equipment		570		569		2,261		2,151
Other		1,069		1,100		4,058		3,852
Total non-interest expense		3,216		3,135		12,793		11,742
Income before income taxes		2,247		1,906		6,716		7,147
Provision (benefit) for income taxes		822		697		2,440		2,639
Net income	$	1,425	$	1,209	$	4,276	$	4,508
Net income per share
Basic		0.20		0.18		0.62		0.71
Diluted		0.20		0.17		0.60		0.66
Weighted average number of shares outstanding
Basic		6,993,838		6,833,259		6,913,534		6,364,336
Diluted		7,191,755		7,134,699		7,171,413		6,819,523

(a) Derived from audited financial statements

American Community Bancshares, Inc.

Consolidated Income Statements

(Amounts in thousands except share and per share data)

(Unaudited)

Three months ended	December 31, 2006			September 30, 2006			June 30, 2006			March 31, 2006			December 31, 2005 (a)
Total interest income	$	8,754		$	8,320		$	7,932		$	7,328		$	7,112
Total interest expense		3,898			3,646			3,180			2,797			2,615
Net interest income		4,856			4,674			4,752			4,531			4,497
Provision for loan losses		188			1,529			668			272			294
Net interest income after provision for loan loss		4,668			3,145			4,084			4,259			4,203
Non-interest income
Service charges on deposit accounts		615			615			601			562			609
Mortgage banking operations		81			84			106			81			77
Realized gains on sale of securities		—			35			—			25			—
Other		99			128			162			159			152
Total non-interest income		795			862			869			827			838
Non-interest expense
Salaries and employee benefits		1,577			1,513			1,855			1,529			1,466
Occupancy and equipment		570			560			560			571			569
Other		1,069			1,032			1,034			923			1,100
Total non-interest expense		3,216			3,105			3,449			3,023			3,135
Income before income taxes		2,247			902			1,504			2,063			1,906
Provision for income taxes		822			290			572			756			697
Net income	$	1,425		$	612		$	932		$	1,307		$	1,209
Net income per share
Basic	$	0.20		$	0.09		$	0.14		$	0.19		$	0.18
Diluted	$	0.20		$	0.09		$	0.13		$	0.18		$	0.17
Weighted average number of shares outstanding
Basic		6,993,838			6,929,474			6,876,336			6,853,240			6,833,259
Diluted		7,191,755			7,173,914			7,176,336			7,156,948			7,134,699
Return on average equity		10.35	%		4.59	%		7.17	%		10.30	%		9.49	%
Return on average assets		1.15	%		0.52	%		0.82	%		1.19	%		1.10	%
Net interest margin		4.28	%		4.25	%		4.59	%		4.44	%		4.36	%
Efficiency ratio		56.91	%		56.09	%		61.36	%		56.42	%		58.76	%
Non-accrual loans	$	563		$	1,078		$	1,922		$	480		$	469
Non-accrual leases		1,246			1,568			1,277			599			482
Other non-performing assets		201			340			394			155			478
Allowance for loan losses to total loans		1.52	%		1.63	%		1.41	%		1.29	%		1.30	%
Net charge-offs to avg loans (annualized)		0.60	%		0.63	%		0.13	%		0.02	%		-0.24	%
Nonperforming loans to total loans		0.49	%		0.72	%		0.90	%		0.31	%		0.29	%
Nonperforming assets to total assets		0.41	%		0.62	%		0.78	%		0.27	%		0.33	%