Albemarle First Bank Announces Net Income for the First Quarter of 2006

Albemarle First Bank, Charlottesville, Virginia (NASDAQ:
AFBK) reports net income of $75 thousand ($0.04 per diluted share) for
the quarter ended March 31, 2006, a 242% increase when compared to net
income of $31 thousand ($0.02 per diluted share) reported for the same
quarter in 2005.
   President and Chief Executive Officer Thomas M. Boyd, Jr.,
comments, "I am delighted with the Bank's progress during 2006, we are
profitable and achieved loan growth of $7.2 million. Loan demand in
the Charlottesville market was strong during the first quarter and we
are optimistic about future growth. The pending merger with Premier
Community Bankshares, Inc. (NASDAQ: PREM) should provide the Bank with
the additional capital base to take advantage of this loan demand
through a higher individual lending limit and increased market
presence. This merger should produce synergies between the two
institutions that will allow us to provide a wider array of products
to all of our customers, while significantly reducing costs."
   Total assets were $123.1 million as of March 31, 2006, a $6.5
million increase over the $116.6 million reported at the end of 2005.
Net loans totaled $94.3 million as of March 31, 2006, compared to
$87.1 million at the end of the prior quarter. Likewise, deposits grew
$1.8 million during the first quarter of 2006 totaling $100.8 million,
up from $99.0 million as of December 31, 2005.
   During the first quarter of 2006, the Bank incurred $100 thousand
of nonrecurring legal expenses related to the pending merger with
Premier Community Bankshares, Inc. (NASDAQ: PREM).
   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, the consummation of the
pending merger with Premier Community Bankshares, Inc., 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.