Related Party Transactions and Outside Related Director Information

Virginia Financial Group, Inc. (VFGI)

3/15/2006 Proxy Information

As of December 31, 2005, borrowings from the Company and its affiliates by all policy-making officers, directors, their immediate families, and affiliated companies in which they are shareholders amounted to approximately $3.1 million. This amount represented 2.3% of the total equity capital and .2% of the total assets of the Company as of December 31, 2005. These loans were made in the ordinary course of the Company’s business, on the same terms, including interest rates and collateral, as those prevailing at the same time for comparable transactions with others, and do not involve greater than normal risks of collectibility. The Company expects to have similar banking transactions with directors, officers, principal shareholders and their associates in the future.

During 2005, the Company paid $27,700 to Mr. Parrish for appraisal services he provided.

See “Personnel and Compensation Committee Interlocks and Insider Participation” for information relating to Mr. Williams’ relationship to the Company.