Community Bank of Northern Virginia Announces Formation of New Mortgage Lending Division, Community Bank Home Mortgage

Business Wire, June 4, 2004

Business Editors

STERLING, Va.--(BUSINESS WIRE)--June 4, 2004

Community Bank of Northern Virginia (Nasdaq:CBNV) announced the formation of a mortgage division, Community Bank Home Mortgage. This division will provide first trust loans to customers located in the Washington Metropolitan Area. A diverse menu of loan products will be offered including first time homebuyer programs, conventional programs, and non-conforming jumbo loans.

Community Bank is also pleased to announce that Richard A. Hutchison has assumed the position of Senior Mortgage Officer responsible for managing the operations of Community Bank Home Mortgage. Mr. Hutchison has been a part of the Bank's management team as the Senior Operations Officer of Community Bank since its inception in February of 1992.

David P. Summers, President and Chief Executive Officer, stated, "Our primary focus for the new mortgage division will be to expand our product offerings to customers as well as prospects. Our lending will be done predominantly within our Northern Virginia footprint with an emphasis on providing consumers a low cost option for their home financing needs." Mr. Summers also added, "Rick Hutchison has played a key role in the growth of the Bank with his emphasis on operations and support. With that expertise, Rick has established the necessary systems and controls to support the new mortgage lending platform. His enthusiasm for the mortgage business is already evidenced by the training and product development activities conducted for our branch production staff. The branches will be our initial focus for production with quality loan originators added as necessary to supplement originations. Our initial production goals are modest, however, we are confident that with the quality staff we have dedicated to the new mortgage lending division, future production and profitability goals will be surpassed."

Community Bank of Northern Virginia (http://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 that operates thirteen branch offices and fifteen automated teller machines. The primary services offered by its 123 full-time equivalent employees include retail, mortgage, commercial, and home banking.

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.