Exhibit 99.1

AND TRUST FINANCIAL CORP.

News Release

For Immediate Release

Contact:

C. Harril Whitehurst, Jr.

Executive Vice President and CFO

804-897-3900

hwhitehurst@villagebank.com

VILLAGE BANK AND TRUST FINANCIAL CORP.

REPORTS RESULTS OF OPERATIONS FOR THE SECOND QUARTER 2014

Midlothian, Virginia, August 1, 2014. Village Bank and Trust Financial Corp. (the “Company”) (NASDAQ symbol: VBFC), parent company of Village Bank (the “Bank”), today reported a second quarter 2014 loss of $85,000 and a net loss available to common shareholders, which deducts from net income the dividends and discount accretion on preferred stock, of $380,000, or $0.07 per fully diluted common share. Those results compare to a net loss of $749,000 and a net loss available to common shareholders of $971,000, or $0.18 per fully diluted common share, for the first quarter of 2014, and net income of $590,000 and net income available to common shareholders of $369,000, or $0.09 per fully diluted common share, for the second quarter of 2013.

Second quarter results were materially impacted by the following factors:

Asset Quality

During the second quarter, the Company continued to make substantial improvement in asset quality. Nonperforming assets (nonaccrual loans and foreclosed real estate) were reduced by approximately $5,892,000, or 19%, from March 31, 2014. The following table presents the activity in nonperforming assets for the second quarter (in thousands):

Classified assets, a broader measure of problem assets, declined by 15% during the quarter. Although foreclosed real estate remained relatively unchanged for the second quarter, the Company sold $3,728,000 in foreclosed real estate for a gain of $234,000 while new foreclosures amounted to $3,943,000. This is a significant improvement from 2013.

Capital

Despite the loss in the second quarter, the Bank’s regulatory capital ratios improved. With an improvement in the risk profile of assets during the quarter, the total risk-based capital ratio improved to 11.62%, surpassing the 11% regulatory requirement established by our agreement with our regulators. In order to meet the Tier 1 leverage capital ratio of 8% required by our agreement with our regulators, we need to return to profitability or raise additional capital. The actions we are taking to reduce expenses, grow revenues and improve asset quality are expected to improve profitability which would thus add to our Tier I capital and position us to recover some or all of the valuation allowance against our deferred tax asset.

The Bank’s capital ratios at the indicated dates were as follows:

Management Comments

“We are making progress against an aggressive agenda,” commented Bill Foster, Chief Executive Officer. “We took several big steps forward during the second quarter. We are now ahead of schedule in building out our commercial banking team thanks to some great hires in recent months. As a result, the loan and deposit pipelines have been growing, and in the coming months we expect to see that activity reflected in growth in loans and core deposits. I am encouraged by the number of new owner-occupied commercial construction deals we have in our pipeline. It indicates that business owners are becoming more confident in the future and are making the kinds of investments that should improve loan demand.”

Mr. Foster continued, “Village Bank Mortgage Corporation had a good second quarter in a competitive and challenging market, and retail banking continues to grow core deposits and other services. Finally, I am pleased with the continued progress we made on asset quality. We had a very successful quarter selling foreclosed properties and were able to liquidate several challenging land parcels at slightly above carrying value in the aggregate.”

“We expect the third and fourth quarters to be even more active on a couple of fronts. We are on schedule to roll out several enhancements to consumer and small business services and intend to support those initiatives with increased marketing and additional sales resources. As you will see in our updates on the various initiatives, we are moving forward, and I believe that we are on track and building momentum.”

Update on Management Initiatives

Management reported continued progress on the initiatives aimed at accomplishing four key objectives:

Following is an update on actions taken in the second quarter to meet these objectives.

About Village Bank and Trust Financial Corp.

Village Bank and Trust Financial Corp. was organized under the laws of the Commonwealth of Virginia as a bank holding company whose activities consist of investment in its wholly-owned subsidiary, Village Bank. Village Bank is a full-service Virginia-chartered community bank headquartered in Midlothian, Virginia with deposits insured by the Federal Deposit Insurance Corporation.  The Bank has eleven branch offices. Village Bank and its wholly-owned subsidiary, Village Bank Mortgage Corporation, offer a complete range of financial products and services, including commercial loans, consumer credit, mortgage lending, checking and savings accounts, certificates of deposit, and 24-hour banking.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about (i) the Company’s plans, objectives, expectations and intentions and other statements contained in this release that are not historical facts; and (ii) other statements identified by words such as “expects” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “targets,” “projects,” or words of similar meaning generally intended to identify forward-looking statements. These forward-looking statements are based on the current beliefs and expectations of the Company’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond management’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the anticipated results discussed or implied in these forward-looking statements because of numerous possible uncertainties.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) adverse governmental or regulatory policies may be enacted; (2) the interest rate environment may compress margins and adversely affect net interest income; (3) results may be adversely affected by continued diversification of assets and adverse changes to credit quality; (4) competition from other financial services companies in the Company’s markets could adversely affect operations; (5) a continuance of the current economic slowdown could adversely affect credit quality and loan originations; and (6) social and political conditions such as war, political unrest and terrorism or natural disasters could have unpredictable negative effects on our businesses and the economy. Additional factors, that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company’s reports (such as our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the Securities and Exchange Commission and available on the SEC’s Web site www.sec.gov.

Financial Highlights

(Dollars in thousands, except per share amounts) 

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