FOR IMMEDIATE RELEASE
||William E. Doyle, Jr.
July 26, 2011
Alliance Bankshares Reports 2nd Quarter 2011 Results
Sixth Consecutive Quarter of Profitability
CHANTILLY, VA Alliance Bankshares Corporation (NASDAQ ABVA) today reported second quarter
2011 net income of $394,000, an increase of 106% over the $191,000 net income recorded for the
second quarter of 2010. This represents income of $.08 per share versus $.04 for the same period
in 2010. For the six month period ended June 30, 2011, net income rose to $759,000, or $.15 per
share, versus $305,000, or $.06 per share, for the six month period ended June 30, 2010.
Alliances regulatory capital ratios are strengthened since December 31, 2010, and remain above the
levels necessary to be considered a well capitalized institution.
We are pleased to report our sixth consecutive quarter of profitability, noted William E. Doyle,
Jr., President and Chief Executive Officer. Opportunistic gains taking in the investments
portfolio, combined with continued attention to non-interest expense management, served to offset
reduced net interest income and higher costs associated with managing credit. Progress continues
in repositioning the loan portfolio to reduce risks related to specific market segments and types
of loans. New loan production achieved during the quarter offset scheduled amortization and
targeted payouts, providing for a modest increase in the loan portfolio compared to the first
At June 30, 2011, total assets amounted to $536.0 million or a decline of $2.5 million compared to
the December 31, 2010 level of $538.5 million. As of June 30, 2011, total loans were higher by
$1.9 million from the March 31, 2011 level of $319.6 million but remained $10.8 million below the
December 31, 2010 level of $332.3 million. Investment securities amounted to $109.0 million as of
June 30, 2011, a decline of $26.9 million from the December 31, 2010 level of $135.9 million.
The nonperforming assets at June 30, 2011 amounted to $16.0 million, compared to $9.4 million at
December 31, 2010. While modestly reduced from March 31, 2011 levels, NPAs remain above December
31, 2010 levels due to specific credit situations described in the prior quarter earnings release.
The allowance for loan losses remained unchanged at $5.6 million, or 1.75% of loans after second
quarter charged-off loans totaled $769,000, net of minimal recoveries.
Continued efforts to manage expenses have resulted in a decline in noninterest expense of $647,000
on a quarterly comparative basis, and nearly $1.5 million when comparing the respective six month
period. Our net interest margin improved to 3.86% for the second quarter. This level is
artificially depressed due to nonaccrual interest income reversals of $117,000.