Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE		CONTACT:		William E. Doyle, Jr.
July 26, 2011				(703) 814-7200

Alliance Bankshares Reports 2^nd Quarter 2011 Results
Sixth Consecutive Quarter of Profitability

CHANTILLY, VA — Alliance Bankshares Corporation (NASDAQ — ABVA) today reported second quarter 2011 net income of $394,000, an increase of 106% over the $191,000 net income recorded for the second quarter of 2010. This represents income of $.08 per share versus $.04 for the same period in 2010. For the six month period ended June 30, 2011, net income rose to $759,000, or $.15 per share, versus $305,000, or $.06 per share, for the six month period ended June 30, 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.

“We are pleased to report our sixth consecutive quarter of profitability,” noted William E. Doyle, Jr., President and Chief Executive Officer. “Opportunistic gains taking in the investments portfolio, combined with continued attention to non-interest expense management, served to offset reduced net interest income and higher costs associated with managing credit. Progress continues in repositioning the loan portfolio to reduce risks related to specific market segments and types of loans. New loan production achieved during the quarter offset scheduled amortization and targeted payouts, providing for a modest increase in the loan portfolio compared to the first quarter 2011.”

At June 30, 2011, total assets amounted to $536.0 million or a decline of $2.5 million compared to the December 31, 2010 level of $538.5 million. As of June 30, 2011, total loans were higher by $1.9 million from the March 31, 2011 level of $319.6 million but remained $10.8 million below the December 31, 2010 level of $332.3 million. Investment securities amounted to $109.0 million as of June 30, 2011, a decline of $26.9 million from the December 31, 2010 level of $135.9 million.

The nonperforming assets at June 30, 2011 amounted to $16.0 million, compared to $9.4 million at December 31, 2010. While modestly reduced from March 31, 2011 levels, NPAs remain above December 31, 2010 levels due to specific credit situations described in the prior quarter earnings release. The allowance for loan losses remained unchanged at $5.6 million, or 1.75% of loans after second quarter charged-off loans totaled $769,000, net of minimal recoveries.

Continued efforts to manage expenses have resulted in a decline in noninterest expense of $647,000 on a quarterly comparative basis, and nearly $1.5 million when comparing the respective six month period. Our net interest margin improved to 3.86% for the second quarter. This level is artificially depressed due to nonaccrual interest income reversals of $117,000.

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

		June 30,				December 31,				June 30,
		2011*				2010				2010*
		(Dollars in thousands)
ASSETS
Cash and due from banks		$	62,436			$	24,078			$	93,083
Federal funds sold			20,359				17,870				25,238
Trading securities, at fair value			658				2,075				2,250
Investment securities available-for-sale, at fair value			108,805				135,852				128,907
Restricted stock, at cost			5,565				6,355				6,937
Loans, net of unearned discount and fees			321,489				332,310				342,089
Less: allowance for loan losses			(5,610	)			(5,281	)			(5,203	)
Loans, net			315,879				327,029				336,886
Premises and equipment, net			1,644				1,584				1,864
Other real estate owned (OREO)			4,312				4,627				7,366
Other assets			16,330				19,041				17,029
TOTAL ASSETS			535,988				538,511				619,560
LIABILITIES AND STOCKHOLDERS’ EQUITY
Non-interest bearing deposits		$	130,838			$	124,639			$	158,724
Savings and NOW deposits			57,633				56,569				69,804
Money market deposits			23,933				25,524				27,746
Time deposits			199,628				200,211				230,079
Total deposits			412,032				406,943				486,353
Repurchase agreements, federal funds purchased and other borrowings			33,882				43,153				33,125
Federal Home Loan Bank advances ($26,281, $26,208 and $26,223 at fair value)			41,281				41,208				51,223
Trust Preferred Capital Notes			10,310				10,310				10,310
Other liabilities			2,704				3,212				2,899
TOTAL LIABILITIES			500,209				504,826				583,910
Common stock, $4 par value; 15,000,000 shares authorized; 5,108,969 shares issued and outstanding at June 30, 2011 and 5,106,819 issued and outstanding at December 31, 2010 and June 30, 2010			20,436				20,427				20,427
Capital surplus			25,854				25,857				25,822
Retained (deficit)			(11,552	)			(12,311	)			(12,712	)
Accumulated other comprehensive income (loss), net			1,041				(288	)			2,113
TOTAL STOCKHOLDERS’ EQUITY			35,779				33,685				35,650
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	535,988			$	538,511			$	619,560

ALLIANCE BANKSHARES CORPORATION
Consolidated Income Statements

		Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
		June 30,				June 30,				June 30,				June 30,
		2011*				2010*				2011*				2010*
		(Dollars in thousands, except per share)
INTEREST INCOME:
Loans		$	4,555			$	5,228			$	9,100			$	10,368
Trading securities			12				49				45				137
Investment securities			1,167				1,637				2,488				3,379
Federal funds sold			12				11				22				22
Total interest income			5,746				6,925				11,655				13,906
INTEREST EXPENSE:
Savings and NOW deposits			30				55				62				127
Time deposits			971				1,468				1,968				3,134
Money market deposits			45				72				94				151
Repurchase agreements, federal funds purchased and other borrowings			52				82				140				206
FHLB advances			256				305				515				584
Trust preferred capital notes			93				88				185				174
Total interest expense			1,447				2,070				2,964				4,376
Net interest income			4,299				4,855				8,691				9,530
Provision for loan losses			769				675				1,075				950
Net interest income after provision for loan losses			3,530				4,180				7,616				8,580
OTHER INCOME:
Deposit account service charges			39				45				76				123
Net gain on sale of available-for-sale securities			835				803				914				1,059
Trading activity and fair value adjustments			(130	)			(426	)			(106	)			(616	)
Other operating income			75				(9	)			119				108
Total other income			819				413				1,003				674
OTHER EXPENSES:
Salaries and employee benefits			1,404				1,547				2,796				3,550
Occupancy expense			564				645				1,125				1,273
Equipment expense			155				185				323				379
Other real estate owned expense			16				351				51				394
FDIC assessments			290				302				640				665
Operating expenses			1,335				1,381				2,552				2,697
Total other expenses			3,764				4,411				7,487				8,958
Income before income taxes			585				182				1,132				296
Income tax expense			191				(9	)			373				(9	)
NET INCOME		$	394			$	191			$	759			$	305
Net income per common share, basic		$	0.08			$	0.04			$	0.15			$	0.06
Net income per common share, diluted		$	0.08			$	0.04			$	0.15			$	0.06
Weighted average number of shares, basic			5,108,821				5,106,819				5,108,436				5,106,819
Weighted average number of shares, diluted			5,134,153				5,107,788				5,125,151				5,107,737

ALLIANCE BANKSHARES CORPORATION
Consolidated Statistical Information
Performance Information

		June 30,				June 30,
		2011*				2010*
		(Dollars in thousands, except per share)
Performance Information:
For The Three Months Ended:
Average loans		$	320,845			$	348,425
Average earning assets			449,770				518,154
Average assets			489,814				563,045
Average non-interest bearing deposits			91,033				97,884
Average total deposits			362,512				407,983
Average interest-bearing liabilities			361,398				427,757
Average stockholder equity			34,581				34,663
Net interest margin (1)			3.86	%			3.84	%
Net income per share, basic		$	0.08			$	0.04
Net income per share, diluted		$	0.08			$	0.04
For The Six Months Ended:
Average loans		$	322,986			$	352,965
Average earning assets			461,962				524,174
Average assets			501,238				569,036
Average non-interest bearing deposits			89,505				91,632
Average total deposits			359,888				411,422
Average interest-bearing liabilities			375,087				440,839
Average equity			34,102				34,041
Return on average assets			0.14	%			0.11	%
Return on average equity			2.21	%			1.81	%
Net interest margin (1)			3.82	%			3.75	%
Net income (loss) per share, basic		$	0.15			$	0.06
Net income (loss) per share, diluted			0.15				0.06

ALLIANCE BANKSHARES CORPORATION
Consolidated Statistical Information
Credit Quality Information ⁽¹⁾

		June 30,				December 31,				June 30,
		2011*				2010				2010*
		(Dollars in thousands)
Credit Quality Information:
Nonperforming assets:
Impaired loans (performing loans with a specific allowance)		$	—			$	2,400			$	641
Non-accrual loans			10,521				1,903				3,537
Loans past due 90 days and still accruing			408				256				—
Troubled debt restructured			749				212				—
OREO			4,312				4,627				7,366
Total nonperforming assets		$	15,990			$	9,398			$	11,544
Specific reserves associated with impaired & non-accrual loans		$	1,533			$	873			$	994

Largest components of the nonperforming assets listed above:

June 30, 2011 non-accrual loans (92% of the total)

$2.7 million which is secured by commercial real estate.
$2.4 million which is secured by residential land.
$1.1 million which is secured by commercial land.
$1.3 million which is secured by 11 residential properties.
$1.1 million which is secured by commercial equipment and receivables.
$547 thousand which is secured by residential building lots.
$535 thousand which is secured by a residential property and lot.

June 30, 2011 OREO (97% of the total)

$1.5 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)
$210 thousand which is an industrial condo in Northern Virginina. (OREO as of 3/31/11)
$156 thousand which is acreage in Spotsylvania, VA. (OREO as of 12/31/10)
$117 thousand which is a commercial lot in King George, VA. (OREO as of 3/31/10)

ALLIANCE BANKSHARES CORPORATION
Consolidated Statistical Information
Credit Quality Information ⁽¹⁾

		June 30,				June 30,
For The Six Months Ended:		2011*				2010*
		(Dollars in thousands)
Balance, beginning of period		$	5,281			$	5,619
Provision for loan losses			1,075				950
Loans charged off			(986	)			(1,408	)
Recoveries of loans charged off			240				42
Net charge-offs			(746	)			(1,366	)
Balance, end of period		$	5,610			$	5,203

		June 30,				March 31,				December 31,				September 30,				June 30,
		2011				2011				2010*				2010*				2010*
Ratios:
Allowance for loan losses to total loans			1.75	%			1.75	%			1.59	%			1.55	%			1.52	%
Allowance for loan losses to non-accrual loans			0.53	X			0.48	X			2.8	X			1.7	X			1.5	X
Allowance for loan losses to nonperforming assets			0.35	X			0.33	X			0.6	X			0.7	X			0.5	X
Nonperforming assets to total assets			2.98	%			3.16	%			1.66	%			1.29	%			1.86	%
Net charge-offs to average loans			0.46	%			0.03	%			0.61	%			0.66	%			0.77	%

ALLIANCE BANKSHARES CORPORATION
Consolidated Statistical Information
Trading Asset & Liability Summary

		June 30, 2011								December 31, 2010
		Fair								Fair
Trading Securities		Value				Yield				Value				Yield
						(Dollars in thousands)
PCMOs 1		$	658				5.43	%		$	2,075				5.32	%
Totals		$	658				5.43	%		$	2,075				5.32	%

		June 30, 2011				December 31, 2010
		Fair				Fair
Fair Value Assets and Liabilities		Value				Value
		(Dollars in thousands)
Trading securities		$	658			$	2,075
FHLB advances			26,281				26,208

ALLIANCE BANKSHARES CORPORATION
Consolidated Statistical Information
Capital Information

		June 30,				December 31,
		2011*				2010
		(Dollars in thousands, except per share)
Capital Information:
Book value per share		$	7.00			$	6.60
Tier I risk-based capital ratio			12.1	%			11.6	%
Total risk-based capital ratio			13.4	%			12.9	%
Leverage capital ratio			8.3	%			7.5	%
Total equity to total assets ratio			6.7	%			6.3	%

ALLIANCE BANKSHARES CORPORATION
Components of Stockholder Equity
on a Book Value per Share Basis

		Six Months				Twelve Months				Six Months
		Ended June 30,				Ended December 31,				Ended June 30,
		2011				2010				2010
Book Value Per Share, beginning of the period		$	6.60			$	6.49			$	6.49
Net income (loss) per common share			0.15				0.14				0.06
Effects of Changes in Other Comprenshive Income 1			0.25				(0.03	)			0.43
Book Value Per Share, end of the period		$	7.00			$	6.60			$	6.98