Community Bank Declares First Quarter Dividend

    Business Editors/Banking Writers

    STERLING, Va.--(BUSINESS WIRE)--Jan. 27, 2005--Community Bank of Northern Virginia (Nasdaq:CBNV) announced that the Board of Directors declared from the undivided profits of the Corporation, a dividend of ten cents ($0.10) per share. The dividend will be payable in cash on March 1, 2005, to Community Bank shareholders of record at close of business on February 15, 2005.
    At the present time, Community Bank has 10,166,577 outstanding shares of common stock, which results in a total dividend payout of $1,016,657.70 for the first quarter of 2005.
    Community Bank of Northern Virginia common stock trades on the Nasdaq National Market under the ticker symbol CBNV. Community Bank (www.cbnv.com) began banking activities in 1992 upon receiving its charter from the Virginia State Corporation Commission through the acquisition of assets and liabilities of an existing bank. Community Bank is a full-service banking institution with total assets of $879.9 million as of December 31, 2004. Currently, the Bank operates 13 branch offices and 15 automated teller machines. The primary services offered by its 134 full-time equivalent employees include retail, mortgage, commercial banking, and home banking.

Dividend Payment History

Quarter Year 2003 Year 2004 Year 2005 ------------------------------------------------------- First $0.07 $0.09 $0.10 ------------------------------------------------------- Second $0.07 $0.10 ------------------------------------------------------- Third $0.08 $0.10 ------------------------------------------------------- Fourth $0.08 $0.10 ------------------------------------------------------- Total/Annual $0.30 $0.39 -------------------------------------------------------

    This press release contains certain forward-looking statements with respect to the plans, objectives, future performance and business of Community Bank of Northern Virginia. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressure in the banking industry increase significantly; (2) changes in the interest rate environment reduce margins or favorable changes in interest rates do not occur; (3) general economic conditions either nationally or regionally are less favorable than expected, resulting in, among other things, a deterioration in credit quality; (4) changes occur in the regulatory environment; (5) changes occur in business conditions; (6) changes occur in the securities markets; (7) the Bank's loan loss reserve to address credit quality concerns may be inadequate, and additional reserves are necessary; (8) strategies to enhance earnings and/or shareholder value are not implemented or fail to have the effects anticipated; (9) recent bank merger activity may not result in the Bank's realizing its goals of increased market share and additional branch expansion; and (10) litigation relating to the Bank's second mortgage lending does not have the effects anticipated and liabilities resulting from the litigation are greater than expected.

--30--JM/ph*

CONTACT: Community Bank of Northern Virginia Dale G. Phelps, 703-444-7634 Fax: 703-421-0316 dphelps@cbnv.com or B. Lisa Benjamin, 703-762-7385 Fax: 703-356-7672 lbenjamin@cbnv.com

KEYWORD: VIRGINIA DISTRICT OF COLUMBIA INDUSTRY KEYWORD: BANKING DIVIDEND SOURCE: Community Bank of Northern Virginia

Copyright Business Wire 2005