FOR IMMEDIATE RELEASE
||Thomas A. Young, Jr.
February 5, 2007
||Paul M. Harbolick, Jr.
4th Quarter and Annual 2006 Results
Earnings Up 10% Over 2005 Annual Results
CHANTILLY, VA Alliance Bankshares Corporation (NASDAQ ABVA) today reported fourth quarter
2006 earnings of $554 thousand compared to $1.1 million the same period last year. The fourth
quarter 2006 results include an after-tax charge of $449,000 for the restructuring the mortgage
operations. For the year ended December 31, 2006 net income was $4.5 million or 10.4% greater than
the earnings of $4.1 million for the year ended December 31, 2005. Earnings per share, diluted
were $.09 for the quarter compared to the fourth quarter 2005 results of $.19. Earnings per share,
diluted for the year ended December 31, 2006 were $.76 per share compared to $.69 per share for the
year ended December 31, 2005.
Thomas A. Young, Jr., President and Chief Executive Officer of Alliance Bankshares, said, The
fourth quarter results include a pre-tax charge of $680,000 and an after-tax charge of $449,000 to
wind down the Alliance Home Funding operation. Our decision to radically restructure the mortgage
operation is centered on our belief that a small self contained operation will service the client
base effectively yet remove the significant volatility associated with a traditional mortgage
operation. Our core banking and insurance operations performed very well in 2006 and we are pleased
with our loan growth. As our portfolio continues to grow, we will remain focused on quality client
relationships and as we enter 2007, we are well positioned for future success.
Total assets were $644.4 million or $32.9 million greater than December 31, 2005 level of $611.5
million. Total loans were $378.7 million as of December 31, 2006 or 24.5% greater than the December
31, 2005 level of $304.2 million. Total loans represent 58.8% of total assets as of December 31,
2006 compared to 49.7% as of December 31, 2005. Our loan to deposit ratio amounted to 80.4% as of
December 31, 2006 compared to 66.0% as of December 31, 2005. Total deposits increased by $10.1
million to $471.3 million as of December 31, 2006 compared to $461.2 million as of December 31,
2005. Investment securities were $200.8 million as of December 31, 2006, down $28.0 million from
the December 31, 2005 level of $228.8 million.
As with many other banks, we have experienced net interest margin pressure throughout 2006. In the
fourth quarter our net interest margin dropped to 3.45% compared to 3.78% for the fourth quarter of
2005 and 3.64% in the third quarter of 2006. On a year to date basis our net interest margin was
3.64% compared to 3.51% for the same period in 2005.