BSXT Boe Fin Serv of Virginia (MM)

BOE Financial Services of Virginia, Inc. Reports 16.1% Increase in 1st Quarter Earnings TAPPAHANNOCK, Va., April 20 /PRNewswire-FirstCall/ -- BOE Financial Services of Virginia, Inc. (NASDAQ:BSXT), parent company of its' wholly-owned subsidiary Bank of Essex, announced the results of operations for the first quarter of 2005. Net income for the first quarter of 2005 was $721,000, a 16.1%, or $100,000 increase over 2004 first quarter income of $621,000. Basic earnings per common share increased from $0.52 in the first quarter of 2004 to $0.60 in the first quarter of 2005. Tangible book value per common share increased from $19.44 at March 31, 2004 to $20.23 per common share at March 31, 2005. The increase in earnings was primarily attributable to an increase of 5.8%, or $128,000 in net interest income after provision for loan losses. Net interest income after provision for loan losses of $2,348,000 in the first quarter of 2005 compared to net interest income after provision for loan losses of $2,220,000 for the same period in 2004. Also contributing to the increase in net income for the first quarter of 2005 compared to the same period in 2004 was a $5,000 increase in noninterest income and a $12,000 decrease in income tax expenses. Noninterest income was $361,000 in the first quarter of 2005 compared to $356,000 for the same period in 2004. This is an increase of 1.4%. Increases to net income were offset by an increase of $40,000 in noninterest expenses, and a $5,000 decrease in securities gains. Bank of Essex, based in Tappahannock, has six banking offices located in Essex, King William, Hanover and Henrico counties, and the Town of West Point. BOE Financial Services of Virginia, Inc. (Unaudited) (Dollar amounts in thousands, except per share data) Balance Sheet Percent ASSETS 03/31/2005 03/31/2004 Change Cash and due $5,543 $9,910 -44.1% Federal funds sold 841 5,957 -85.9% Securities Held-to-Maturity 3,000 - Securities Available-for-Sale 53,856 51,092 5.4% Equity Securities, restricted, at cost 843 937 -10.0% Loans held for sale 131 192 -31.8% Loans, net of unearned income 162,100 158,156 2.5% LESS: Allowance for loan losses (2,192) (2,019) 8.6% Loans, net 159,908 156,137 2.4% Bank premises and equipment, net 6,397 6,481 -1.3% Accrued interest receivable 1,226 1,183 3.6% Intangible assets 744 870 -14.5% Other assets 2,900 1,984 46.2% Total assets $235,389 $234,743 0.3% LIABILITIES Deposits Non-interest bearing $25,772 $24,759 4.1% Interest bearing 179,059 180,532 -0.8% Total Deposits 204,831 205,291 -0.2% Federal funds purchased - - Federal Home Loan Bank advances - - Accrued interest payable 314 314 0.0% Other liabilities 1,260 1,117 12.8% Trust preferred capital notes 4,124 4,124 0.0% Total liabilities 210,529 210,846 -0.2% Minority interest in consolidated subsidiaries - - EQUITY CAPITAL Common stock 5,960 5,923 0.6% Surplus 5,134 5,021 2.3% Retained earnings 13,552 11,314 19.8% Accumulated other comprehensive income 214 1,639 -86.9% Total equity capital 24,860 23,897 4.0% Total liabilities, minority interest, and equity capital $235,389 $234,743 0.3% For the For the quarter quarter ended ended Percent Income Statement 03/31/2005 03/31/2004 Change (Unaudited) Interest income $3,350 $3,182 5.3% Interest expense 922 887 3.9% Net interest income 2,428 2,295 5.8% Provision for loan losses 80 75 6.7% Net interest income after provision for loan losses 2,348 2,220 5.8% Noninterest income 361 356 1.4% Securities (gains)/losses 5 10 -50.0% Noninterest expense 1,777 1,737 2.3% Income taxes 216 228 -5.3% Net income $721 $621 16.1% Earnings per share, basic $0.60 $0.52 15.4% Earnings per share, fully diluted $0.60 $0.52 15.4% Tangible book value per share $20.23 $19.44 4.1% DATASOURCE: BOE Financial Services of Virginia, Inc. CONTACT: Bruce E. Thomas, Senior Vice President, Chief Financial Officer of BOE Financial Services of Virginia, Inc., +1-804-443-4343 Web site: http://www.bankofessex.com/

Copyright