BSXT Boe Fin Serv of Virginia (MM)

BOE Financial Services of Virginia, Inc. Reports 3rd Quarter Earnings TAPPAHANNOCK, Va., Oct. 27 /PRNewswire-FirstCall/ -- BOE Financial Services of Virginia, Inc. , parent company of its wholly-owned subsidiary Bank of Essex, announced the results of operations for the third quarter of 2003. Net income for the third quarter of 2003 was $599,000, a 403.4% increase from 2002 third quarter income of $119,000. Fully diluted earnings per common share were $0.50 in the third quarter of 2003 compared to $0.10 in the third quarter of 2002. Tangible book value per common share increased from $17.06 at September 30, 2002 to $18.36 per common share at September 30, 2003. This increase in quarterly earnings was primarily attributable to a $698,000 reduction in provision for loan losses in 2003 as compared to 2002. In the third quarter of 2002 the Bank began a more uniform approach in recognizing and recording nonperforming loans. Through Bank of Essex, BOE Financial Services of Virginia operates six full service banking offices in Tappahannock, Central Garage, Mechanicsville, West Point and Glen Allen, Virginia. BOE Financial Services of Virginia, Inc. (Dollar amounts in thousands, except per share data) Balance Sheet Percent ASSETS 09/30/2003 09/30/2002 Change Cash and due from banks $8,295 $6,114 35.7% Securities Available-for-Sale 46,944 43,577 7.7% Equity Securities, Restricted 947 1,345 -29.6% Federal funds sold 7,151 8,121 -11.9% Loans held for sale 1,237 920 34.5% Loans, net 154,849 159,898 -3.2% Premises and fixed assets 6,574 6,590 -0.2% Intangible assets 933 1,059 -11.9% Other assets 2,969 3,635 -18.3% Total assets $229,899 $231,259 -0.6% LIABILITIES Deposits Non-interest bearing $22,077 $18,828 17.3% Interest bearing 179,491 181,306 -1.0% 201,568 200,134 0.7% Other borrowed money 4,000 8,000 -50.0% Other liabilities 1,718 2,008 -14.4% Total liabilities $207,286 $210,142 -1.4% EQUITY CAPITAL Common stock $5,904 $5,880 0.4% Surplus 4,971 4,904 1.4% Retained earnings 10,402 8,638 20.4% Accumulated other comprehensive income 1,336 1,695 -21.2% Total equity capital $22,613 $21,117 7.1% Total liabilities and equity capital $229,899 $231,259 -0.6% For the For the quarter ended quarter ended Percent 09/30/2003 09/30/2002 Change Income Statement Interest income $3,290 $3,437 -4.3% Interest expense 987 1,377 -28.3% Net interest income $2,303 $2,060 11.8% Provision for loan losses 150 848 -82.3% Net interest income after provision for loan losses $2,153 $1,212 77.6% Noninterest income $341 $273 24.9% Noninterest expense 1,704 1,433 18.9% Income taxes 191 (67) Net income $599 $119 403.4% Earnings per share, fully diluted $0.50 $0.10 400.0% Nine months Nine months Ended Ended Percent 09/30/2003 09/30/200 Change Income Statement Interest income $10,043 $10,392 -3.4% Interest expense 3,174 4,391 -27.7% Net interest income $6,869 $6,001 14.5% Provision for loan losses 550 1,118 -50.8% Net interest income after provision for loan losses $6,319 $4,883 29.4% Noninterest income $910 $856 6.3% Securities gains/(losses) 22 (1) -2300.0% Noninterest expense 4,975 4,371 13.8% Income taxes 503 213 136.2% Net income $1,773 $1,154 53.6% Earnings per share, fully diluted $1.50 $0.98 53.1% Tangible book value per share $18.36 $17.06 7.6% DATASOURCE: BOE Financial Services of Virginia, Inc. CONTACT: Bruce E. Thomas, Sr. 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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