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 17% INCREASE IN 2007 NET INCOME

January 25, 2008. Charlotte, North Carolina: American Community Bancshares, Inc. (NASDAQ Stock Market: ACBA), the holding company for American Community Bank, announced unaudited earnings for the year ended December 31, 2007 of $5,020,000, an increase of $744,000 or 17.4% from unaudited earnings for the year ended December 31, 2006. Diluted earnings per common share increased to $0.72 for the year ended December 31, 2007 compared to $0.60 for the year ended December 31, 2006. Return on average equity was 9.15% and 8.08% and return on average assets was 1.01% and .91% for the years ended December 31, 2007 and 2006, respectively.

Earnings were higher for the year due to an increase in net interest income of $420,000 as a result of an $18.0 million increase in earning assets which was partially offset by a 20 basis point decrease in average net interest margin. In addition the provision for loan losses decreased $1.6 million to $1.0 million in 2007 as compared to $2.6 million in 2006. The large provision in 2006 was primarily due to problems that arose in the leasing portfolio. That line of business was discontinued in 2006 and the remaining balances of $3.9 million continue to roll off. Compensation expense increased as a result of normal salary increases combined with an increase in employee headcount during 2007. Other expense increased $428,000 and was primarily a result of an increase in professional fees of $233,000 combined with an increase in FDIC federal deposit insurance premiums of $256,000.

Unaudited earnings for the quarter ended December 31, 2007 were $1,112,000, a $313,000 or 22.0% decrease over unaudited earnings for the quarter ended December 31, 2006 of $1,425,000. Diluted earnings per share for the quarter ended December 31, 2007 decreased to $.17 compared to $.20 for the quarter ended December 31, 2006. Earnings were down primarily due to a decrease in net interest margin from 4.28% for the quarter ended December 31, 2006 to 4.01% for the quarter ended December 31, 2007 which resulted in a $187,000 decrease in net interest income. In addition the provision for loan losses was $328,000 higher for the quarter ended

December 31, 2007 primarily due to the growth in the loan portfolio in the fourth quarter of 2007.

Total assets as of December 31, 2007 were $505.3 million, compared to $494.7 million at December 31, 2006, an increase of $10.6 million or 2.1%. Total loans were $387.2 million, an increase of $22.4 million or 6.1%, over the $364.8 million reported at December 31, 2006. Total deposits were $399.8 million, a slight decrease of $1.3 million or 0.32% over year ended 2006 deposits of $401.1 million. Asset quality continues to improve on a linked quarter basis, as nonperforming assets decreased to $1.2 million or 0.24% of assets in the fourth quarter of 2007 from $1.5 million or 0.29% of assets in the third quarter of 2007 continuing the positive trend in problem assets.

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 Capital 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, 2007			September 30, 2007			June 30, 2007			March 31, 2007			December 31, 2006 (a)
Assets
Cash and due from banks	$	14,346		$	15,684		$	17,989		$	17,977		$	19,950
Interest-earning deposits with banks		930			5,484			11,481			14,381			17,295
Investment securities		76,782			79,043			74,012			59,946			65,192
Loans		392,959			373,309			381,415			375,395			370,431
Allowance for loan losses		(5,740	)		(5,374	)		(5,543	)		(5,472	)		(5,628	)
Net loans		387,219			367,935			375,872			369,923			364,803
Accrued interest receivable		2,640			2,922			2,615			2,751			2,938
Bank premises and equipment		8,694			8,746			8,927			9,046			9,105
Foreclosed real estate		—			25			25			25			195
Non-marketable equity securities at cost		2,119			2,119			2,119			1,819			1,879
Goodwill		9,838			9,838			9,838			9,838			9,838
Other assets		2,685			3,232			2,803			3,302			3,463
Total assets	$	505,253		$	495,028		$	505,681		$	489,008		$	494,658
Liabilities and Stockholders' Equity
Deposits
Non-interest bearing	$	54,459		$	54,805		$	58,453		$	62,414		$	61,735
Interest bearing		345,335			342,574			349,013			333,576			339,402
Total deposits		399,794			397,379			407,466			395,990			401,137
Borrowings		49,504			43,533			40,984			34,934			37,085
Accrued expenses and other liabilities		1,931			1,649			1,272			1,797			1,368
Total liabilities		451,229			442,561			449,722			432,721			439,590
Total stockholders' equity		54,024			52,467			55,959			56,287			55,068
Total liabilities and stockholders' equity	$	505,253		$	495,028		$	505,681		$	489,008		$	494,658
Ending shares outstanding		6,502,288			6,502,288			6,961,236			7,020,343			7,008,081
Book value per share	$	8.31		$	8.07		$	8.04		$	8.02		$	7.86
Average Balances:
Loans	$	379,191		$	372,407		$	373,741		$	369,191		$	360,877
Earning assets		462,078			460,577			460,615			444,022			450,244
Total assets		499,430			501,961			496,220			487,791			491,385
Interest-bearing deposits		344,619			346,820			341,627			331,231			332,523
Stockholders' equity		53,366			54,041			56,236			55,752			54,599

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

American Community Bancshares, Inc.

(Amounts in thousands except per share data)

(Unaudited)

Consolidated Income Statements

	Three Months Ended December 31,						Year ended December 31,
	2007			2006			2007			2006 (a)
Total interest income	$	8,737		$	8,754		$	35,426		$	32,334
Total interest expense		4,068			3,898			16,193			13,521
Net interest income		4,669			4,856			19,233			18,813
Provision for loan losses		471			143			1,041			2,612
Net interest income after provision for loan losses		4,198			4,713			18,192			16,201
Non-interest income
Service charges on deposit accounts		613			615			2,419			2,393
Mortgage banking operations		83			81			326			352
Realized gains on sale of securities		—			—			(56	)		60
Other		205			99			626			548
Total non-interest income		901			795			3,315			3,353
Non-interest expense
Salaries and employee benefits		1,724			1,577			6,893			6,474
Occupancy and equipment		505			570			2,194			2,261
Other		1,132			1,114			4,531			4,103
Total non-interest expense		3,361			3,261			13,618			12,838
Income before income taxes		1,738			2,247			7,889			6,716
Provision for income taxes		626			822			2,869			2,440
Net income	$	1,112		$	1,425		$	5,020		$	4,276
Net income per share
Basic		0.17			0.20			0.74			0.62
Diluted		0.17			0.20			0.72			0.60
Weighted average number of shares outstanding
Basic		6,502,288			6,993,838			6,779,635			6,913,534
Diluted		6,652,452			7,191,755			6,938,259			7,171,413
Return on average equity		8.26	%		10.35	%		9.15	%		8.08	%
Return on average assets		0.88	%		1.15	%		1.01	%		0.91	%
Net interest margin		4.01	%		4.28	%		4.19	%		4.39	%
Efficiency ratio		60.34	%		57.71	%		60.40	%		57.92	%
Net charge-offs to avg loans (annualized)		0.10	%		0.60	%		0.25	%		0.37	%

(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, 2007			September 30, 2007			June 30, 2007			March 31, 2007			December 31, 2006
Total interest income	$	8,737		$	9,070		$	8,921		$	8,698		$	8,754
Total interest expense		4,068			4,225			4,001			3,899			3,898
Net interest income		4,669			4,845			4,920			4,799			4,856
Provision for loan losses		471			156			231			183			143
Net interest income after provision for loan loss		4,198			4,689			4,689			4,616			4,713
Non-interest income
Service charges on deposit accounts		613			617			608			581			615
Mortgage banking operations		83			70			93			80			81
Realized gains on sale of securities		—			2			—			17			—
Gain (loss) on economic hedge		132			138			(67	)		11			—
Other		73			134			88			118			99
Total non-interest income		901			961			722			807			795
Non-interest expense
Salaries and employee benefits		1,724			1,768			1,743			1,658			1,577
Occupancy and equipment		505			560			564			565			570
Other than temporary impairment		—			—			—			76			—
Other		1,132			1,121			1,175			1,103			1,114
Total non-interest expense		3,361			3,449			3,482			3,402			3,261
Income before income taxes		1,738			2,201			1,929			2,021			2,247
Provision for income taxes		626			801			707			735			822
Net income	$	1,112		$	1,400		$	1,222		$	1,286		$	1,425
Net income per share
Basic	$	0.17		$	0.21		$	0.18		$	0.18		$	0.20
Diluted	$	0.17		$	0.21		$	0.17		$	0.18		$	0.20
Weighted average number of shares outstanding
Basic		6,502,288			6,635,709			6,978,724			7,008,971			6,993,838
Diluted		6,652,452			6,799,753			7,140,680			7,176,577			7,191,755
Return on average equity		8.26	%		10.28	%		8.81	%		9.36	%		10.35	%
Return on average assets		0.88	%		1.11	%		1.00	%		1.05	%		1.15	%
Net interest margin		4.01	%		4.22	%		4.28	%		4.38	%		4.28	%
Efficiency ratio		60.34	%		59.40	%		61.72	%		60.68	%		56.91	%
Allowance for loan losses to total loans		1.46	%		1.44	%		1.45	%		1.46	%		1.52	%
Net charge-offs to avg loans (annualized)		0.10	%		0.35	%		0.17	%		0.37	%		0.60	%
Nonperforming loans to total loans		0.31	%		0.37	%		0.40	%		0.41	%		0.57	%
Nonperforming assets to total assets		0.24	%		0.29	%		0.31	%		0.32	%		0.47	%