VFGI Virginia Financial Grp. (MM)

Bankers Insurance, LLC Announces Intent to Acquire Cabell Insurance Associates CULPEPER, Va., Dec. 10 /PRNewswire-FirstCall/ -- Virginia Financial Group, Inc. (NASDAQ:VFGI) announced today that Bankers Insurance, LLC, an insurance agency in which Virginia Financial Group, Inc.(VFG) holds a 5.5% interest, intends to acquire Cabell Insurance Associates. Established in 1951, Cabell is the largest insurance agency in the Charlottesville, Virginia area and enjoys an excellent reputation with its clients, the community and the insurance industry. In addition to the main office in Charlottesville, Cabell also has an office in Culpeper, Virginia. All of Cabell's current owners will remain with Bankers Insurance and play key leadership roles as part of the management team. Established in 1999, Bankers Insurance is one the largest agencies in Virginia. Owned by 60 community banks, which created the agency in conjunction with the Virginia Bankers Association's Management Services Division, Bankers Insurance has made eight insurance agency acquisitions since 2000 and now operates from 12 offices located throughout Virginia. The addition of Cabell brings strong resources and additional growth opportunities to Bankers Insurance. Commenting on the combination of Cabell and Bankers Insurance, Bruce Cabell, president of Cabell Insurance, said, "We have found a corporate partner in Bankers Insurance: an agency with strong ties to its communities and the unique ability of extending its reach to the customers and communities of 60 Virginia banks. We are excited at the prospects of continuing our excellent service to our existing clients and being able to offer full service insurance solutions to new clients." O. R. Barham, Jr., President and CEO of VFG added, "We are very pleased that Cabell is joining Bankers Insurance. We are very familiar with the quality of this agency given the proximity to our markets, and particularly excited about the agency having a Culpeper presence. We look forward to welcoming Cabell to our Company." VFG is one of the largest Virginia based community bank holding companies. It is the parent 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 services 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. Statements made in this release relating to the company's future prospects and performance are "forward-looking statements" that are subject to risks and uncertainties, both known and unknown, that could cause actual results to differ materially from those expressed or implied by such statements. Factors that could have a material adverse effect on the operations and future prospects of the company include, but are not limited to, changes in: interest rates, general economic conditions, the legislative/regulatory climate, monetary and fiscal policies of the US Government including policies of the US 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 the company's market area, and accounting principles, policies, and guidelines. The information provided in this release is provided only as of the date of this release, and the company undertakes no obligation to update any forward- looking statements made herein. DATASOURCE: Virginia Financial Group, Inc. CONTACT: Jeffrey W. Farrar, Executive Vice President and CFO of Virginia Financial Group, Inc., +1-540-829-1603, or Web site: http://www.vfgi.net/

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