BSXT Boe Fin Serv of Virginia (MM)

- Net income increased 2.4% for the quarter - Earnings per share increased 3.3% and 1.7%, basic and diluted, for the quarter TAPPAHANNOCK, Va., April 25 /PRNewswire-FirstCall/ -- BOE Financial Services of Virginia, Inc. (NASDAQ:BSXT), parent company of its' wholly-owned subsidiary Bank of Essex, announced results of operations for the first quarter of 2006. Net income for the first quarter of 2006 was $738,000, a 2.4%, or $17,000 increase over 2005 first quarter income of $721,000. Basic earnings per common share increased from $0.60 in the first quarter of 2005 to $0.62 in the first quarter of 2006. Tangible book value per common share increased from $20.23 at March 31, 2005 to $21.83 per common share at March 31, 2006. The increase in earnings was primarily attributable to an increase of 2.8%, or $68,000 in net interest income. Net interest income was $2,496,000 in the first quarter of 2006 compared to net interest income of $2,428,000 for the same period in 2005 and increased due to higher loan volumes of 17.3%. Additionally, noninterest income increased $53,000, or 14.7%, to $414,000 in the first quarter of 2006 compared to $361,000 for the same period in 2005. Increases to net income were offset by an increase of $37,000 in noninterest expenses, a $36,000 decrease in securities gains/losses, a $20,000 increase in provision for loan losses and an increase of $11,000 in income tax expense. Total assets increased 14.2%, or $33.3 million, from $235.4 million on March 31, 2005 to $268.7 million on March 31, 2006. Total loans increased 17.3%, or $28.0 million, from $162.1 million on March 31, 2005 to $190.1 million on March 31, 2006. Total deposits increased $15.1 million, or 7.4%, from $204.8 million on March 31, 2005 to $219.9 million on March 31, 2006. George M. Longest, Jr., President and CEO stated: "In 2006 we look forward to occupying our new headquarters in Tappahannock and continuing to provide superior value-added service and market driven products. We will continue to ensure our customers receive the excellent service they are accustomed to, which has enabled us to operate as Bank of Essex for 80 years. I am gratified with the operating and financial increases recorded in the first quarter of 2006." Bank of Essex, based in Tappahannock, has six full service banking offices located in Essex, King William, Hanover and Henrico counties, and the Town of West Point. Contact: Bruce E. Thomas, Senior Vice President/Chief Financial Officer 804-443-4343. Certain statements in the document are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in BOE Financial Services of Virginia, Inc.'s filings with the Securities and Exchange Commission. BOE Financial Services of Virginia, Inc. (Dollar amounts in thousands, except per share data) Balance Sheet Percent ASSETS 03/31/2006 03/31/2005 Change Cash and due $4,959 $5,543 -10.5% Federal funds sold - 841 -100.0% Securities Held-to-Maturity 3,000 3,000 0.0% Securities Available-for-Sale 51,714 53,856 -4.0% Equity Securities, restricted, at cost 1,553 843 84.2% Loans held for sale 844 131 544.3% Loans, net of unearned income 190,095 162,100 17.3% LESS: Allowance for loan losses (2,346) (2,192) 7.0% Loans, net 187,749 159,908 17.4% Bank premises and equipment, net 6,259 6,397 -2.2% Accrued interest receivable 1,352 1,226 10.3% Intangible assets 619 744 -16.8% Other assets 10,685 2,900 268.4% Total assets $268,734 $235,389 14.2% LIABILITIES Deposits Non-interest bearing $27,921 $25,772 8.3% Interest bearing 191,969 179,059 7.2% Total Deposits 219,890 204,831 7.4% Federal funds purchased 4,391 - Federal Home Loan Bank advances 12,000 - Accrued interest payable 571 314 81.8% Other liabilities 960 1,260 -23.8% Trust preferred capital notes 4,124 4,124 0.0% Total liabilities 241,936 210,529 14.9% Minority interest in consolidated subsidiaries - - EQUITY CAPITAL Common stock 5,996 5,960 0.6% Surplus 5,282 5,134 2.9% Retained earnings 15,798 13,552 16.6% Accumulated other comprehensive income (278) 214 -229.9% Total equity capital 26,798 24,860 7.8% Total liabilities, minority interest, and equity capital $268,734 $235,389 14.2% For the For the quarter ended quarter ended Percent Income Statement 03/31/2006 03/31/2005 Change Interest income $3,965 $3,350 18.4% Interest expense 1,469 922 59.3% Net interest income 2,496 2,428 2.8% Provision for loan losses 100 80 25.0% Net interest income after provision for loan losses 2,396 2,348 2.0% Noninterest income 414 361 14.7% Securities gains/(losses) (31) 5 -720.0% Noninterest expense 1,814 1,777 2.1% Income taxes 227 216 5.1% Net income $738 $721 2.4% Earnings per share, basic $0.62 $0.60 3.3% Earnings per share, fully diluted $0.61 $0.60 1.7% Tangible book value per share $21.83 $20.23 7.9% DATASOURCE: BOE Financial Services of Virginia, Inc. CONTACT: Bruce E. Thomas, Senior Vice President and Chief Financial Officer of BOE Financial Services of Virginia, Inc., +1-804-443-4343 Web site: http://www.bankofessex.com/

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