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 JUNE 30, 2008 AND DECLARES THIRD

QUARTER DIVIDEND OF $0.05 PER SHARE

July 22, 2008. Charlotte, North Carolina: American Community Bancshares, Inc. (NASDAQ Capital Market: ACBA), the holding company for American Community Bank, announced unaudited earnings for the three months ended June 30, 2008 of $484,000 as compared to unaudited earnings of $1.2 million for the same period of 2007. The change in earnings for the quarter was primarily related to compression in the Bank’s net interest margin. The net interest margin for the quarter ended June 30, 2008 was 3.23% as compared to 4.28% for the same quarter in 2007. The compression in net interest margin is primarily a result of deposit and borrowings costs decreasing more slowly than the yield on earning assets. The Federal Open Market Committee (FOMC) decreased short-term rates seven times for a total of 325 basis points beginning September 18, 2007 and ending April 30, 2008. Since the majority of our loans float with the prime lending rate, the yield on our loans decreased immediately as the FOMC lowered rates. Due to the longer term maturity structure of our deposits and borrowings, the costs of those liabilities were slower to decrease. Earnings per share (diluted) for the three months ended June 30, 2008 were $0.07 as compared to $0.17 for the three months ended June 30, 2007.

Unaudited earnings for the six months ended June 30, 2008 were $1,475,000 as compared to unaudited earnings for the six months ended June 30, 2007 of $2,508,000. Earnings per share (diluted) for the six months ended June 30, 2008 were $0.22 as compared to $0.35 for the six months ended June 30, 2007. The annualized return on average assets for the six months ended June 30, 2008 was 0.57% with a return on average equity of 5.35% as compared to 1.03% and 9.04%, respectively for the same period in 2007.

Total assets as of June 30, 2008 were $529.9 million, an increase of $24.2 million or 4.8% from $505.7 million at June 30, 2007. The Company also experienced similar growth in loans and deposits. Total net loans were $406.5 million, an increase of $30.6 million or 8.1%, over the $375.9 million reported at June 30, 2007. Total deposits were $416.5 million, an increase of $9.0 million or 2.2% over second quarter 2007 deposits of $407.5 million.

The Company’s provision for loan losses for the quarter ended June 30, 2008 was $296,000, representing a $65,000 increase from the $231,000 recorded for the quarter ended June 30, 2007. The increase in the provision was primarily due to a higher rate of growth in the loan portfolio in 2008 as compared to 2007. We ended the second quarter with non-performing loans and leases as a percentage of loans of only 0.52% which is down from 0.60% at March 31, 2008. The Bank maintained a loan loss reserve of 1.55% of total loans as of June 30, 2008 as compared to 1.45% at June 30, 2007.

Randy P. Helton, President and Chief Executive Officer commented, “In a difficult and unusual banking environment, like most banks, we suffered from interest rate compression. While margin compression had a dramatic effect on our second quarter earnings, our non-interest income remained stable and non-interest expenses were down from the same period in the prior year. In addition, the Bank did experience an expansion of our net interest margin in June. As we move into the second half of 2008, our Bank remains very well capitalized. We will continue to aggressively monitor credit quality, focus on net interest margin expansion and effectively manage non-interest expenses.”

The Company is also pleased to announce the Board of Directors declared a quarterly cash dividend for the third quarter of 2008 of $0.05 per share. The dividend will be paid on September 2, 2008 to shareholders of record on August 22, 2008.

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 is

www.americancommunitybank.com. American Community Bancshares stock is traded on the NASDAQ Capital market under the symbol “ACBA”. For more information contact- Stephanie Helms, Shareholder Relations or Dan Ellis, CFO 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, 2008			March 31, 2008			December 31, 2007 (a)			September 30, 2007			June 30, 2007
Assets
Cash and due from banks	$	16,078		$	16,126		$	14,346		$	15,684		$	17,989
Interest-earning deposits with banks		749			682			930			5,484			11,481
Investment securities		77,563			79,521			76,782			79,043			74,012
Loans		412,881			404,954			392,959			373,309			381,415
Allowance for loan losses		(6,390	)		(6,095	)		(5,740	)		(5,374	)		(5,543	)
Net loans		406,491			398,859			387,219			367,935			375,872
Accrued interest receivable		2,148			2,398			2,640			2,922			2,615
Bank premises and equipment		8,434			8,605			8,694			8,746			8,927
Foreclosed real estate		—			—			—			25			25
Non-marketable equity securities at cost		3,039			2,814			2,119			2,119			2,119
Goodwill		9,838			9,838			9,838			9,838			9,838
Other assets		5,510			5,308			3,027			3,232			2,803
Total assets	$	529,850		$	524,151		$	505,595		$	495,028		$	505,681
Liabilities and stockholders’ equity
Deposits
Non-interest bearing	$	52,278		$	53,439		$	54,459		$	54,805		$	58,453
Interest bearing		364,268			357,701			345,335			342,574			349,013
Total deposits		416,546			411,140			399,794			397,379			407,466
Borrowings		58,140			55,709			49,504			43,533			40,984
Accrued expenses and other liabilities		393			1,807			2,273			1,649			1,272
Total liabilities		475,079			468,656			451,571			442,561			449,722
Total stockholders’ equity		54,771			55,495			54,024			52,467			55,959
Total liabilities and stockholders’ equity	$	529,850		$	524,151		$	505,595		$	495,028		$	505,681
Ending shares outstanding		6,542,091			6,542,091			6,502,288			6,502,288			6,961,236
Book value per share	$	8.37		$	8.48		$	8.31		$	8.07		$	8.04
Average Balances:
Loans	$	407,925		$	389,144		$	379,191		$	372,407		$	373,741
Earning assets		489,032			471,071			462,078			460,577			460,615
Total assets		525,587			513,398			499,430			501,961			496,220
Interest-bearing deposits		360,784			351,699			344,619			346,820			341,627
Stockholders’ equity		55,346			55,069			53,366			54,041			56,236

(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	June 30, 2008			March 31, 2008			December 31, 2007			September 30, 2007			June 30, 2007
Total interest income	$	7,569		$	8,188		$	8,737		$	9,070		$	8,921
Total interest expense		3,629			3,873			4,068			4,225			4,001
Net interest income		3,940			4,315			4,669			4,845			4,920
Provision for loan losses		296			425			471			156			231
Net interest income after provision for loan loss		3,644			3,890			4,198			4,689			4,689
Non-interest income
Service charges on deposit accounts		597			602			613			617			608
Mortgage banking operations		95			86			83			70			93
Realized gains on sale of securities		—			—			—			2			—
Gain/loss on derivatives		(148	)		272			132			138			(67	)
Loss on SERP investment		(72	)		(19	)		—			—			—
Other		68			78			73			134			88
Total non-interest income		540			1,019			901			961			722
Non-interest expense
Salaries and employee benefits		1,639			1,743			1,724			1,768			1,743
Occupancy and equipment		614			584			505			560			564
Other		1,190			1,044			1,132			1,121			1,175
Total non-interest expense		3,443			3,371			3,361			3,449			3,482
Income before income taxes		741			1,538			1,738			2,201			1,929
Provision for income taxes		257			547			626			801			707
Net income	$	484		$	991		$	1,112		$	1,400		$	1,222
Net income per share
Basic	$	0.07		$	0.15		$	0.17		$	0.21		$	0.18
Diluted	$	0.07		$	0.15		$	0.17		$	0.21		$	0.17
Weighted average number of shares outstanding
Basic		6,542,091			6,513,526			6,502,288			6,635,709			6,978,724
Diluted		6,613,633			6,623,392			6,652,452			6,799,753			7,140,680
Return on average equity		3.46	%		7.24	%		8.26	%		10.28	%		8.81	%
Return on average assets		0.36	%		0.78	%		0.88	%		1.11	%		1.00	%
Net interest margin		3.23	%		3.76	%		4.01	%		4.22	%		4.28	%
Efficiency ratio		76.85	%		63.20	%		60.34	%		59.40	%		61.72	%
Allowance for loan losses to total loans		1.55	%		1.51	%		1.46	%		1.44	%		1.45	%
Net charge-offs to avg loans (annualized)		0.00	%		0.07	%		0.10	%		0.35	%		0.17	%
Nonperforming loans to total loans		0.54	%		0.60	%		0.44	%		0.37	%		0.40	%
Nonperforming assets to total assets		0.42	%		0.47	%		0.34	%		0.29	%		0.31	%