2.61%, which is an increase of 53 basis points from 2.08% for the same period in 2006. Non-interest bearing demand deposit average balances for this period of 2007 was $1.3 million greater than compared to the first quarter of 2006. The net interest spread and net interest margin for the first quarter of 2007 was 3.71% and 4.29%, respectively, as compared to 3.85% and 4.30%, respectively for the same quarter of 2006.

Non-interest income for the first quarter of 2007 was $540 thousand or $48 thousand greater than the same period in 2006. The year-over-year first quarter increase in non-interest income was 9.6%. All categories, with the exception of deposit account fees, increased in 2007 over the same period in 2006; deposit account fees declined $27 thousand in 2007 as compared to 2006 due to lower overdraft volumes and the charge-off of delinquent checking accounts which results in the reversal of overdraft fees. Gains from loan sales to the secondary market increased $22 thousand in the first quarter of 2007 to $36 thousand as compared to $14 thousand for the same period of 2006, representing a 149% year-over-year increase. Other areas showing increases in the first quarter of 2007 as compared to the same period in 2006 includes ATM fees and fees earned from the sale of annuities and other non-deposit investment products.

Non-interest expenses during the first quarter of 2007 were $2.0 million or an increase of only 1.8% or $36 thousand from the same period in 2006. The addition of the Bank’s eleventh banking office in South Hill, Virginia is adding to the first quarter expenses in 2007, with additional personnel, occupancy and services costs; however, management’s cost containment and reduction efforts are a major reason why year-over-year expenses have shown so little growth.

President and Chief Executive Officer Joseph D. Borgerding stated, “Management is very pleased in the Bank’s execution of its strategic plan which focuses on steady and profitable balance sheet growth,” he continued, “Income performance remains strong even with the added expenses of the newest banking office in South Hill.”

Citizens Bank and Trust Company was founded in 1873 and is the second oldest independent bank in Virginia. The bank has eleven offices in the Counties of Amelia, Chesterfield, Mecklenburg, Nottoway and Prince Edward, along with one branch in the city of Colonial Heights and one in the Town of South Hill, Virginia. Citizens Bancorp of Virginia, Inc. is a single bank holding company headquartered in Blackstone, Virginia and the Company’s stock trades on the OTC Bulletin Board under the symbol “CZBT”. Additional information on the Company is also available at its web site: www.cbtva.com.

Citizens Bancorp of Virginia, Inc. cautions readers that certain statements in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes that its expectations with respect to these forward-looking statements are based upon reasonable assumptions within the bounds of its business operations, there can be no assurance that the actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. For more details on factors that could affect expectations, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2006 as filed with the Securities and Exchange Commission.

CITIZENS BANCORP OF VIRGINIA, INC. AND SUBSIDIARY

Consolidated Balance Sheet

(Dollars in thousands, except share data)

CITIZENS BANCORP OF VIRGINIA, INC. AND SUBSIDIARY

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except per share data)