Exhibit 99.1

News Release

For Immediate Release

VILLAGE BANK AND TRUST FINANCIAL CORP.

REPORTS EARNINGS FOR THE FIRST QUARTER OF 2022

Midlothian, Virginia, April 29, 2022. Village Bank and Trust Financial Corp. (the “Company”) (Nasdaq symbol: VBFC), parent company of Village Bank (the “Bank”), today reported unaudited results for the first quarter of 2022. Net income for the first quarter of 2022 was $1,800,000, or $1.22 per fully diluted share, compared to net income for the first quarter of 2021 of $3,897,000, or $2.66 per fully diluted share.

Jay Hendricks, President and CEO, commented, “We generated a healthy $7,489,000 of revenue, $1,800,000 of earnings, and a return on average equity of 11.48% in the first quarter despite economic headwinds from rising rates and inflation and the wind down of the Paycheck Protection Program (“PPP”). The Commercial Banking Segment’s Pre-tax Pre-provision (“PTPP”) earnings, excluding income from PPP loans, grew 37.59%, from Q1 2021. This increase is attributable to the growth in the core loan portfolio and the investment portfolio, and the reduction in our cost of interest bearing liabilities. Core loan growth was 1.57% in the first quarter and was broad based spanning commercial and consumer categories.”

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“Our mortgage segment was negatively impacted by rapidly rising rates, lack of home supply and higher home prices during the quarter. While we expect the rate environment to continue to impact mortgage application volumes and margins, we are encouraged by an uptick in mortgage applications and expense control as we head into the spring market.”

“Our key areas of focus are core relationship growth, expanding relationships with our PPP clients as well as remaining disciplined in managing our net interest margin (“NIM”).  We are well positioned for a rising rate environment and will address the rising rates and increasing liquidity through our disciplined approach to balance sheet management and prudent risk taking.”

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Operating Results

The following table presents quarterly results for the indicated periods (in thousands):

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Three months ended March 31, 2022 vs. three months ended March 31, 2021.

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The Commercial Banking Segment posted net income of $1,999,000 for Q1 2022 compared to $2,289,000 for Q1 2021.

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The following are variances of note for the three months ended March 31, 2022 compared to the three months ended March 31, 2021:

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The Mortgage Banking Segment posted a net loss of $199,000 for Q1 2022 compared to net income of $1,608,000 for Q1 2021. Mortgage originations were $45,039,000 for Q1 2022, down 50.14% from $90,877,000 for Q1 2021. The drop in mortgage orginations during Q1 2022 is the result of the sharp rise in mortgage rates during Q1 2022 and the historically low inventory of homes for sale. While the low inventory of homes for sale continues to be a risk to the Mortgage Bankings Segment’s earnings for 2022, we have begun to see an uptick in mortgage applications as we head into the spring market.

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Pre-Tax Pre-Provision Earnings by Segment

The following table presents the pre-tax pre-provision earnings by segment for the indicated periods (in thousands):

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The Commercial Banking Segment recorded PTPP earnings of $2,059,000 for Q1 2022 compared to $2,998,000 for Q1 2021. Excluding income from PPP loans, the Commercial Banking Segment’s PTPP earnings grew $415,000, or 37.59%, from Q1 2021. The growth in the Commercial Banking Segement’s PTPP earnings was the result of growth in the core loan portfolio and the investment portfolio and the 24 basis points reduction in our cost of interest bearing liabilities.

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The Company believes that reporting PTPP earnings, excluding income from PPP loans, provides a useful illustration of the Company’s core operating performance over the reported periods. PTPP earnings, excluding PPP loans, is determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP measures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

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Financial Highlights

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Highlights for the three months ended March 31, 2022 and March 31, 2021 are as follows:

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Loans and Asset Quality

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The following table provides the composition of our gross loan portfolio at the dates indicated (in thousands):

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Core loans, which are total loans, excluding PPP loans, increased by $7,763,000, or 1.57%, from Q4 2021, and increased by $69,211,000, or 16.01%, from Q1 2021. Variances of note are as follows:

PPP loans decreased by $15,578,000, or 47.78%, from Q4 2021 and decreased by $142,746,000, or 89.35%, from Q1 2021. Our expectations are that the majority of the remaining PPP loans will receive forgiveness by the end of the second quarter of 2022.

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Asset quality

The Bank’s asset quality metrics continue to compare favorably to our peers as follows:

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Deposits

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The following table provides the composition of our deposits at the dates indicated (in thousands):

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Total deposits increased by $19,625,000, or 2.96%, from Q4 2021, and increased by $63,617,000, or 10.26%, from Q1 2021. Variances of note are as follows:

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Capital

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Shareholders’ equity at March 31, 2022 was $61,480,000 compared to $63,401,000 at December 31, 2021, which resulted in a tangible common equity ratio of 8.04% and 8.47%, as of March 31, 2022 and December 31, 2021, respectively. The $1,921,000 decrease in shareholders’ equity during the three months ended March 31, 2022 was primarily due to the $3,607,000 increase in accumulated other comprehensive loss associated with the unrealized holding losses arising during the period, which were the result of the movement in interest rates during the three months ended March 31, 2022. The increase in the unrealized holding losses was partially offset by net income of $1,800,000 during the three months ended March 31, 2022.

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The Bank continues to maintain a strong, well-capitalized position. The following table presents the regulatory capital ratios for the Bank at the dates indicated:

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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 (“FDIC”).  The Bank has nine 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

In addition to historical information, this press release may contain forward-looking statements.  For this purpose, any statement, that is not a statement of historical fact may be deemed to be a forward-looking statement.  These forward-looking statements may include statements regarding profitability, liquidity, allowance for loan losses, interest rate sensitivity, market risk, growth strategy and financial and other goals.  Forward-looking statements often use words such as “believes,” “expects,” “plans,” “may,” “will,” “should,” “projects,” “contemplates,” “anticipates,” “forecasts,” “intends” or other words of similar meaning.  You can also identify them by the fact that they do not relate strictly to historical or current facts.  Forward-looking statements are subject to numerous assumptions, risks and uncertainties, and actual results could differ materially from historical results or those anticipated by such statements.

There are many factors that could have a material adverse effect on the operations and future prospects of the Company including, but not limited to:

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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 SEC and available on the SEC’s Web site at www.sec.gov.

For further information contact Donald M. Kaloski, Jr., Executive Vice President and CFO at 804-897-3900 or dkaloski@villagebank.com.

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