|FOR IMMEDIATE RELEASE
February 3, 2011
||William E. Doyle, Jr.
Paul M. Harbolick, Jr.
Alliance Bankshares Reports 2010 Results
Significant progress achieved on repositioning activities in 2010
CHANTILLY, VA Alliance Bankshares Corporation (NASDAQ ABVA) today reported fourth quarter net
income of $158,000. For the full year of 2010, the Company has earned $705,000, representing a
significant improvement over the 2009 results when the Company reported a loss on continuing
operations of $3.7 million and a loss of $4.4 million after discontinued operations. Alliances
regulatory capital ratios remain above the levels necessary to be considered a well capitalized
We are very pleased with the significant performance improvement generated in 2010. As I have
indicated in shareholder letters, press releases and regulatory filings, 2010 was a key transition
period for Alliance. Our team has focused significant energies on repositioning the Company.
Many of the key indicators such as lower levels of non-performing assets, an improved net interest
margin, a meaningful decrease in operating expenses and positive net income reflect our progress.
Internally, we monitor our core earnings performance very closely and I am pleased to report
significant improvement in that key metric as well, said William E. Doyle, Jr., President and
Chief Executive Officer. The Companys 2011 focus remains on reducing nonperforming assets,
improving core operations and optimizing profitability, while investing in the future. I believe
Alliance is in a strong position to grow and serve our community. Our commercial banking team is
very focused on small to medium sized businesses. We offer a broad array of loan products,
including real estate financing, and design our products to meet the financing needs of our clients
and prospects. Our continued commitment to this key market segment provides needed credit in the
marketplace while adding strong client relationships, further added Doyle.
At December 31, 2010, total assets amounted to $538.5 million, a decline of $37.8 million compared
to the December 31, 2009 level of $576.3 million. As of December 31, 2010, total loans were down
$27.1 million from the December 31, 2009 level of $359.4 million. Investment securities amounted
to $135.9 million as of December 31, 2010, a decline of $9.1 million from the December 31, 2009
level of $145.0 million. A key part of our 2010 repositioning strategy has been focused on
rightsizing the balance sheet, adjusting the asset mix and driving down the cost of funding on
deposits and other liabilities. We have tactically reduced certain types of real estate loans and
the size of the investment portfolio. The longer-term objective is to grow small business
commercial loans and owner occupied commercial real estate portfolios.