VFGI Virginia Financial Grp. (MM)

Virginia Financial Group Inc. Announces Sale of Branches CULPEPER, Va., Nov. 9 /PRNewswire-FirstCall/ -- Virginia Financial Group Inc. (NASDAQ:VFGI) today announced that its subsidiary, Planters Bank & Trust Company of Virginia, has signed a definitive agreement to sell two branches located in Tazewell County, Virginia to the Bank of Tazewell County, an affiliate of National Bankshares, Inc. headquartered in Blacksburg, Virginia. The branch sale, which is subject to regulatory approval, includes all deposit accounts, and the purchase of selected loans, fixed assets and real estate. At September 30, 2004, the two branches reported deposits of $21 million and loans of $9 million. The proposed transaction is expected to close in the first quarter of 2005. "This transaction reflects our efforts to improve synergy and cost efficiency for our franchise, which ultimately creates value for our shareholders," said VFG President and Chief Executive Officer O. R. Barham Jr. "The Tazewell branches did not complement our existing franchises as well as the other six branches purchased from First Virginia in 2003. We are confident that the Bank of Tazewell County will provide the customers of our Tazewell branches an in-market convenience and the same level of community banking service." VFG is the holding company for Planters Bank & Trust Company of Virginia - - in Staunton; Second Bank & Trust -- in Culpeper; Virginia Heartland Bank -- in Fredericksburg and Virginia Commonwealth Trust Company -- in Culpeper. The Company is a traditional community banking provider, offering a full range of business and consumer banking services including trust and asset management service via its trust company affiliate. The organization maintains a network of thirty-seven branches serving Central and Southwest Virginia. It also maintains five trust and investment service offices in its markets, and loan production offices located in Charlottesville and Lynchburg. This press release contains forward-looking statements as defined by federal securities laws. These statements may address certain results that are expected or anticipated to occur or otherwise state the company's predictions for the future. A forward-looking statement in this press release encompasses any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief herein. These particular forward-looking statements and all other statements that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially. Such factors include but are not limited to: regulatory approval, general economic conditions, significant fluctuations in interest rates that could reduce net interest margin; difficulties in executing integration plans; regulatory environment; reduction of fee income from existing products due to market conditions; and the amount of growth in the company's general and administrative expenses. Consequently, these cautionary statements qualify all forward-looking statements made herein. Please refer to VFG's filings with the Securities and Exchange Commission for additional information, which may be accessed at http://www.vfgi.net/. DATASOURCE: Virginia Financial Group Inc. CONTACT: Jeffrey W. Farrar, Executive Vice President and CFO of Virginia Financial Group Inc., +1-540-829-1603, Web site: http://www.vfgi.net/

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