Exhibit 99.1
Central Virginia Bankshares, Inc. Reports GSE Preferred Stock Valuation
POWHATAN, VA., September 10, 2008 / PR Newswire- First Call / - Central Virginia
Bankshares, Inc., the parent company of Central Virginia Bank reported today that the bank holds
Fannie Mae and Freddie Mac perpetual preferred stock at a cost of approximately $17.9 million.
These bank eligible securities have been held in the available for sale investment portfolio of the
bank. The majority of these securities were purchased by the bank prior to December 2003.
As a result of the government takeover and conservatorship of Fannie Mae and Freddie Mac, and
the announcement of the suspension of payment of dividends on the preferred stock, the Company
estimates that as of September 9, 2008, these holdings have declined in value by approximately
$16.6 million. However the precise amount of loss may be difficult to determine due to the
significant volatility in the current market values of these securities. Further, in the future, there is
the possibility that these securities may increase in value should the financial condition of Fannie
Mae and Freddie Mac stabilize, the government intervention end, and the companies resume
the payment of dividends.
The Company believes that despite any losses resulting from the decline in market value, the bank
will be “adequately capitalized” under the current regulatory requirements. “This is certainly an
unpleasant pill to swallow,” said Ralph Larry Lyons, President and CEO, “however, Central
Virginia Bank remains a sound financial institution with total regulatory capital of approximately
$33.5 million remaining after recognizing the estimated non-cash write down associated with the
decline in value of the Government Sponsored Enterprise (GSE) stocks. Following the third quarter,
we anticipate continuation of reasonable profits in subsequent quarters. We are absolutely confident
that we will weather this storm.”
Readers are cautioned that this press release contains forward-looking statements made pursuant to
safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-
looking statements are based on management’s current knowledge, assumptions, and analyses,
which it believes are appropriate in the circumstances regarding future events, and may address
issues that involve significant risks including, but not limited to: changes in interest rates; changes
in accounting principles, policies, or guidelines; significant changes in general economic,
competitive, and business conditions; significant changes in or additions to laws and regulatory
requirements; and significant changes in securities markets. Additionally, such aforementioned
uncertainties, assumptions, and estimates, may cause actual results to differ materially from the
anticipated results or other expectations expressed in the forward-looking statements.
Central Virginia Bankshares, Inc. is the parent of Central Virginia Bank, a 34 year-old, $507
million community bank with its headquarters in Powhatan County and six other full service
banking offices, two in the adjacent County of Cumberland, three offices in western Chesterfield
County and one office in western Henrico County, adjacent to, and part of the greater Richmond,
Virginia metropolitan area.
SOURCE | Central Virginia Bankshares, Inc. |
CONTACT: | Charles F. Catlett, III, Senior Vice President and Chief Financial Officer of |
| Central Virginia Bankshares, Inc., 804-403-2002 |
