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

A QUARTERLY EARNINGS INCREASE OF THIRTY ONE PERCENT AND

SURPASSES $500 MILLION IN ASSETS

July 20, 2007. 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 June 30, 2007 of $1,222,000, a 31.1% increase from unaudited earnings for the same period in 2006. Earnings for the second quarter 2007 were positively impacted by a $41.3 million increase in average earning assets. The Bank also reached a milestone by surpassing $500 million in assets. The Company continued to show a strong net interest margin at 4.28% for the quarter ended June 30, 2007 although it decreased from 4.59% in 2006. Diluted earnings per share increased to $0.17 per share for the three months ended June 30, 2007 from $0.13 per share for the same period in 2006. The annualized return on average assets for the three months ending June 30, 2007 was 1.00% with a return on average equity of 8.81% as compared to 0.82% and 7.17%, respectively for the same period in 2006.

Earnings in the second quarter were also positively impacted as the Company recorded a $437,000 decrease in its provision for loan losses during the quarter ended June 30, 2007. The provision for loan losses for the second quarter of 2006 was primarily related to losses discovered in the Bank’s leasing portfolio. Since that time, the leasing portfolio has paid down to a balance of approximately $5.9 million at June 30, 2007 from $12.0 million in 2006. In addition, nonperforming loans and leases (defined as non-accrual loans and leases plus loans and leases 90 days delinquent and still accruing) decreased 68.1% to a balance of $1.5 million at June 30, 2007 from a balance of $4.7 million at June 30, 2006. Nonperforming loans and leases as a percentage of total loans decreased to 0.40% at June 30, 2007 from 1.32% at June 30, 2006. Earnings for the quarter ended June 30, 2006 were also negatively impacted by a one-time non-cash compensation charge of $218,000 after tax related to stock options granted.

Unaudited earnings for the six months ended June 30, 2007 were $2,508,000 or a 12.0% increase over unaudited earnings for the six months ended June 30, 2006 of $2,239,000. Earnings per share (diluted) for the six months ended June 30, 2007 increased to $0.35 compared to $0.31 for the six months ended June 30, 2006. The annualized return on average assets for the six months ending June 30, 2007 was 1.03% with a return on average equity of 9.04% as compared to 1.00% and 8.71%, respectively for the same period in 2006.

Randy P. Helton, President and Chief Executive Officer commented, “The second quarter of 2007 showed significant earnings improvement over the same quarter of 2006 as we continue to build our franchise. We have reached an asset milestone, with over $500 million in assets and thirteen offices strategically located throughout North and South Carolina. We take pride in our loyal and dedicated employees that continue to build and grow relationships within the communities we serve.”

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 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	June 30, 2007			March 31, 2007			December 31, 2006 (a)			September 30, 2006			June 30, 2006
Assets
Cash and due from banks	$	17,989		$	17,977		$	19,950		$	15,268		$	16,057
Interest-earning deposits with banks		11,481			14,381			17,295			11,357			326
Investment securities		74,012			59,946			65,192			66,239			65,309
Loans		381,415			375,395			370,431			368,020			357,134
Allowance for loan losses		(5,543	)		(5,472	)		(5,628	)		(5,987	)		(5,041	)
Net loans		375,872			369,923			364,803			362,033			352,093
Accrued interest receivable		2,615			2,751			2,938			2,811			2,576
Bank premises and equipment		8,927			9,046			9,105			9,286			9,328
Foreclosed real estate		25			25			195			283			258
Non-marketable equity securities at cost		2,119			1,819			1,879			2,187			2,062
Goodwill		9,838			9,838			9,838			9,838			9,838
Other assets		2,803			3,302			3,463			4,112			2,925
Total assets	$	505,681		$	489,008		$	494,658		$	483,414		$	460,772
Liabilities and Stockholders’ Equity
Deposits
Non-interest bearing	$	58,453		$	62,414		$	61,735		$	58,806		$	56,125
Interest bearing		349,013			333,576			339,402			327,758			305,268
Total deposits		407,466			395,990			401,137			386,564			361,393
Borrowings		40,984			34,934			37,085			41,556			46,116
Accrued expenses and other liabilities		1,272			1,797			1,368			1,480			659
Total liabilities		449,722			432,721			439,590			429,600			408,168
Total stockholders’ equity		55,959			56,287			55,068			53,814			52,604
Total liabilities and stockholders’ equity	$	505,681		$	489,008		$	494,658		$	483,414		$	460,772
Ending shares outstanding		6,961,236			7,020,343			7,008,081			6,963,663			6,921,554
Book value per share	$	8.04		$	8.02		$	7.86		$	7.73		$	7.60
Average Balances:
Loans	$	373,741		$	369,191		$	360,877		$	361,216		$	351,815
Earning assets		460,615			444,022			450,244			436,391			419,346
Total assets		496,220			487,791			491,385			474,706			457,689
Interest-bearing deposits		341,627			331,231			332,523			312,189			296,171
Stockholders’ equity		56,236			55,752			54,599			53,364			52,163

(a) Derived from audited consolidated financial statements, except average balance data

American Community Bancshares, Inc.

Consolidated Income Statements

(Amounts in thousands except share and per share data)

(Unaudited)

Three months ended	June 30, 2007			March 31, 2007			December 31, 2006			September 30, 2006			June 30, 2006
Total interest income	$	8,921		$	8,698		$	8,754		$	8,320		$	7,932
Total interest expense		4,001			3,899			3,898			3,646			3,180
Net interest income		4,920			4,799			4,856			4,674			4,752
Provision for loan losses		231			183			143			1,529			668
Net interest income after provision for loan loss		4,689			4,616			4,713			3,145			4,084
Non-interest income
Service charges on deposit accounts		608			581			615			615			601
Mortgage banking operations		93			80			81			84			106
Realized gains on sale of securities		—			17			—			35			—
Gain (loss) on economic hedge		(67	)		11			—			—			—
Other		88			118			99			128			162
Total non-interest income		722			807			795			862			869
Non-interest expense
Salaries and employee benefits		1,743			1,658			1,577			1,513			1,855
Occupancy and equipment		564			565			570			560			560
Other than temporary impairment		—			76			—			—			—
Other		1,175			1,103			1,114			1,032			1,034
Total non-interest expense		3,482			3,402			3,261			3,105			3,449
Income before income taxes		1,929			2,021			2,247			902			1,504
Provision for income taxes		707			735			822			290			572
Net income	$	1,222		$	1,286		$	1,425		$	612		$	932
Net income per share
Basic	$	0.17		$	0.18		$	0.20		$	0.09		$	0.14
Diluted	$	0.17		$	0.18		$	0.20		$	0.09		$	0.13
Weighted average number of shares outstanding
Basic		6,978,724			7,008,971			6,993,838			6,929,474			6,876,336
Diluted		7,140,680			7,176,577			7,191,755			7,173,914			7,176,336
Return on average equity		8.81	%		9.36	%		10.35	%		4.59	%		7.17	%
Return on average assets		1.00	%		1.05	%		1.15	%		0.52	%		0.82	%
Net interest margin		4.28	%		4.38	%		4.28	%		4.25	%		4.59	%
Efficiency ratio		61.72	%		60.68	%		56.91	%		56.09	%		61.36	%
Allowance for loan losses to total loans		1.45	%		1.46	%		1.52	%		1.63	%		1.41	%
Net charge-offs to avg loans (annualized)		0.17	%		0.37	%		0.60	%		0.63	%		0.13	%
Nonperforming loans to total loans		0.40	%		0.41	%		0.57	%		0.84	%		1.32	%
Nonperforming assets to total assets		0.31	%		0.32	%		0.47	%		0.71	%		1.11	%