Albemarle First Bank Announces Financial Results for the Second Quarter of 2005

Albemarle First Bank, Charlottesville, Virginia
(NASDAQ:AFBK) reports a net loss of $11 thousand ($0.01 per diluted
share) for the quarter ended June 30, 2005, compared to net income of
$20 thousand ($0.01 per diluted share) reported for the same period of
2004. Net income for the six months ended June 30, 2005 totaled $20
thousand ($0.01 per diluted share), compared to a $23 thousand ($0.01
per diluted share) for the same period a year ago. The decline in net
income for the three and six month periods ended June 30, 2005 was
attributable in large measure to nonrecurring expenses of $72 thousand
in 2005 related to the previously announced planned merger with
Millennium Bankshares Corporation (NASDAQ: MBVA). Income before
merger-related expenses (net of taxes) for the quarter ended June 30,
2005 was $37 thousand ($0.02 per diluted share), compared to $20
thousand ($0.01 per diluted share) for the same period last year.
Income before merger-related expenses (net of taxes) for the six
months ended June 30, 2005 was $68 thousand ($0.04 per diluted share)
compared to $23 thousand, or $0.01 per diluted share, for the same
period last year.
   Total assets rose to $121.5 million, an increase of 3.34%, over
the $117.6 million reported at June 30, 2004. Net loans have also
increased over the past year, rising 9.21% to $92.3 million at end of
the second quarter in 2005. Total deposits were $101.4 million as of
June 30, 2005, a $4.8 million or 5.16% increase over the $96.6 million
reported at June 30, 2004.
   Thomas M. Boyd, Jr., President and Chief Executive Officer said,
"Our growth in 2005 has been measured and limited by the amount of
capital our bank has available. However, with the impending merger
with Millennium Bankshares, which we hope will be consummated during
the fourth quarter of 2005, we will have sufficient capital to both
expand our presence with additional branches, and continue the rate of
growth we believe is achievable for Albemarle First Bank in this
market. We will maintain local autonomy by continuing to operate as
Albemarle First Bank, and we will also add new products to our list of
services. We will see our exciting plans become reality."
   The Bank recorded a $255 thousand loan loss provision during the
first six months of 2005 bringing the allowance for loan losses to
1.43% of the loan portfolio. This provision was necessary to
adequately reserve for the exposure within the Bank's portfolio of
impaired loans, which were primarily made by the Bank's prior
management team. Management believes that the allowance for loan
losses of $1.3 million as of June 30, 2005 is adequate to absorb
potential losses within the Bank's existing loan portfolio.
Non-accrual loans totaled $2.5 million at June 30, 2005, compared to
$2.3 million a year earlier.
   Albemarle First Bank offers a full range of banking and financial
services to individuals, professionals, and small and medium-sized
businesses in the City of Charlottesville, Albemarle County, Greene
County, and the surrounding areas.
   This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended.
These statements may be based on certain assumptions and may describe
future plans, strategies, and expectations of the Bank, and are
generally identifiable by use of the words "believe," "expect,"
"intend," "anticipate," "estimate," "project," "may," "will," or
similar expressions. Although we believe our plans, intensions, and
expectations reflected in these forward-looking statements are
reasonable, we can give no assurance that these plans, intensions, and
expectations will be achieved. Our ability to predict results or the
actual effect of future plans or strategies is inherently uncertain,
and actual results, performance or achievements could differ
materially from those contemplated. Factors that could have a material
adverse effect on our operations and future prospects include, but are
not limited to, changes in: interest rates, general economic
conditions, the legislative/regulatory climate, monetary and fiscal
policies of the U.S. Government, including policies of the U.S.
Treasury and the Board of Governors of the Federal Reserve System, the
quality or composition of the loan or investment portfolios, demand
for loan products, deposit flows, competition, demand for financial
services in our market area and accounting principles, policies, and
guidelines. These risks and uncertainties should be considered in
evaluating the forward-looking statements contained herein and undue
reliance should not be placed on such statements, which reflect our
position as of the date of this release. Consequently, all
forward-looking statements made in this press release are qualified by
the cautionary language contained in the Bank's quarterly and annual
reports filed pursuant to the Securities Exchange Act of 1934.