On July 7, 2020, William G. Foster, Jr., the President and a director of Village Bank and Trust Financial Corp. (the “Company”) and its wholly-owned subsidiary, Village Bank (the “Bank”), notified the Boards of Directors of the Company and the Bank that he will step down as an officer and director of the Company and the Bank on August 14, 2020 to pursue other interests. On July 8, 2020, the Boards of Directors of the Company and the Bank promoted James E. Hendricks, Jr., currently Executive Vice President, Chief Operating Officer and Chief Risk Officer of the Bank, to the positions of President and the Bank effective upon Mr. Foster’s departure. Mr. Hendricks was also appointed to the Boards of Directors of the Company and the Bank effective upon Mr. Foster’s departure and is expected to serve on the Executive Committee of each Board. The Bank has initiated a search for a Chief Credit Officer and an Executive Vice President of Operations to assume the primary responsibilities of Mr. Hendricks in his current role. The Company also expects to engage Mr. Foster as a consultant for a 90-day period beginning August 15, 2020 to help support the leadership transition and achievement of the Company’s 2020 goals. Mr. Hendricks has served as Executive Vice President, Chief Operating Officer and Chief Risk Officer of the Bank since December 2016. He served as Chief Credit Officer of the Bank from March 2014 to December 2016. Prior thereto, he served as Director of Special Assets of the Bank. From 1990 to 2013, Mr. Hendricks served in several leadership roles at SunTrust Bank (and its predecessor Crestar Bank) in Consumer Banking and Credit Process Review.