NEWS RELEASE

Alliance Bankshares Reports 2011 Results

CHANTILLY, VA – Alliance Bankshares Corporation (NASDAQ – ABVA) today reported a net loss of $483 thousand for 2011, which includes a loss of $739 thousand during the 4^th quarter. Results during the quarter were unfavorably impacted by significant non-recurring merger expenses, OREO write-downs, and settlement of a legal action relating to the previous sale of a bank-owned residential property. Also, the continuing low level of long term interest rates resulted in an additional increase in the valuation of a $25 million FHLB Advance, which is accounted for under Fair Value Option (FVO) accounting. The quarterly results represent a loss of $.14 per share versus income of $.03 per share for the same period in 2010. For the full year ended December 31, 2011, the net loss is $.09 per share versus net income of $.14 per share for the full year ended December 31, 2010. Alliance’s regulatory capital ratios are strengthened since December 31, 2010, and remain above the levels necessary to be considered a “well capitalized” institution.

Core operating earnings (see Reconciliation of Non-GAAP Measures) on a pre-tax basis improved substantially year-over-year, up from $1.9 million in 2010 to $2.98 million for 2011. This calculation results from adjusting net income from continuing operations for non-recurring revenues and expenses, e.g., income from securities gains and expenses for merger-related activities and fair value adjustments.

At December 31, 2011, total assets amounted to $511.6 million, or a decline of $26.9 million when compared to the December 31, 2010 level of $538.5 million. As of December 31, 2011, total loans were $306.9 million, which is $25.4 million below the December 31, 2010 level of $332.3 million. The decline in the loan portfolio results from a combination of strategic repositioning of lending activities, normal amortization, and payoffs, the total of which offset new loan production during the period. Investment securities amounted to $123.5 million as of December 31, 2011, a decline of $12.4 million from the December 31, 2010 level of $135.9 million. Year-over-year, total deposits declined $26.6 million, to $380.4 million at December 31, 2011.

Non-performing assets (NPAs) at December 31, 2011 amounted to $17.97 million, an increase of $8.6 million when compared to $9.4 million at December 31, 2010. Year-over-year, the rise in NPAs is due to an $8.96 million increase in non-accrual loans, which offset a modest decline in OREO. At December 31, 2011, the allowance for loan losses stood at $5.4 million, or 1.76% of loans.

Continued efforts to manage expenses have resulted in a decline in noninterest expenses of $421,000 on a quarterly comparative basis, and $2.2 million year-over-year when comparing 2011 to 2010. The Bank’s net interest margin for 2011 was 3.48%, a decrease from 3.79% for 2010. The margin decline resulted largely from the change in mix within the investment portfolio and was also artificially depressed due to nonaccrual interest income reversals.

Cautionary Statement Regarding Forward-Looking Statements. Certain statements contained in this report that are not historical facts may constitute “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements can generally be identified by the use of words such as “may,” “will,” “should,” “could,” “would,” “plan,” “believe,” “expect,” “anticipate,” “intend” or words of similar meaning. These statements are inherently uncertain; there can be no assurance that the underlying assumptions will prove to be accurate. These forward-looking statements include statements relating to the Company’s anticipated future performance, mix of assets and liabilities and effects of efforts to reposition its business. Readers should not place undue reliance on such statements, which speak only as of the date of this release. The Company does not undertake to update any forward-looking statement that may be made from time to time by it or on its behalf.

Forward-looking statements are subject to risks, assumptions and uncertainties, and could be affected by many factors. Some factors that could cause the Company’s actual results to differ materially from those anticipated in these forward-looking statements include: interest rates, general business conditions, as well as conditions within the financial markets, general economic conditions, unemployment levels, the legislative/regulatory climate, including the effect of the Dodd-Frank Wall Street Reform Act and Consumer Protection Act of 2010 and related regulations, regulatory compliance costs, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve, the quality/composition of the loan portfolios and the value of related collateral, the value of securities the Company holds, charge-offs on loans and the adequacy of the allowance for loan losses, loan demand, deposit flows, counterparty strength, competition, reliance on third parties for key services, the health of the real estate markets, the outcome of the Company’s repositioning initiatives, and changes in accounting principles.

More information on Alliance Bankshares Corporation can be found online at

www.alliancebankva.com, or by phoning an Alliance office.

###

ALLIANCE BANKSHARES CORPORATION

Consolidated Balance Sheets

ALLIANCE BANKSHARES CORPORATION

Consolidated Income Statements

ALLIANCE BANKSHARES CORPORATION

Consolidated Statistical Information

Performance Information

ALLIANCE BANKSHARES CORPORATION

Consolidated Statistical Information

Credit Quality Information ⁽¹⁾

Largest components of the nonperforming assets listed above:

December 31, 2011 non-accrual and Impaired loans (91% of the total)

$2.6 million which is secured by commercial real estate.

$2.5 million which is secured by residential land.

$2.2 million which is secured by17 residential units

$1.0 million which is secured by commercial real estate

$968 thousand which is secured by commercial equipment and receivables.

$962 thousand which is secured by residential property.

$900 thousand secured by commercial land

$540 thousand which is secured by a residential property and lot.

$348 thousand which is secured by residential property.

$336 thousand which is secured by residential real estate.

December 31, 2010 OREO (96% of the total)

$1.7 million which is acreage near Winchester, Virginia. (OREO as of 9/30/07)

$879 thousand which is acreage in Woodstock, VA. (OREO as of 3/31/08)

$837 thousand which is property in Charles Town, WV. (OREO as of 6/30/10)

$477 thousand which consists of two parcels of land in Northern Virginia. (OREO as of 3/31/08)

$275 thousand which is one acre in Northern Virginina. (OREO as of 3/31/08)

$162 thousand which is residential land in Northern Virginia. (OREO as of 12/31/10)

$117 thousand which is an office warehouse in King George, VA. (OREO as of 3/31/10)

ALLIANCE BANKSHARES CORPORATION

Consolidated Statistical Information

Credit Quality Information ⁽¹⁾

ALLIANCE BANKSHARES CORPORATION

Consolidated Statistical Information

Trading Asset & Liability Summary

ALLIANCE BANKSHARES CORPORATION

Consolidated Statistical Information

Capital Information

ALLIANCE BANKSHARES CORPORATION

Components of Stockholder Equity

on a Book Value per Share Basis

ALLIANCE BANKSHARES CORPORATION

Reconciliation of Non-GAAP Measures