MIDLOTHIAN, Va., Aug. 3, 2009 (GLOBE NEWSWIRE) -- Frank Bell, III, President and Chief Executive Officer of Bank of Virginia (Nasdaq:BOVA) (www.bankofva.com) announced the Bank's second quarter 2009 financial performance today. The Bank reported a second quarter profit of $142 thousand or $0.05 per basic and diluted earnings per share. This represents a 40% increase over the first quarter of 2009. It should be noted that this second quarter 2009 reported profit is after a special assessment paid to the FDIC of $103 thousand. This assessment based on asset size was imposed on all FDIC insured institutions and in no way is a reflection of the Bank's performance.
The Bank's total assets increased $7 million from $222 million reported March 31, 2009 to $229 million at June 30, 2009. This represents a 3% increase for the quarter. These positive results continue to demonstrate the Bank's dedication to concentrate on growing during this challenging financial environment. "Bank of Virginia continues to be well-capitalized based upon regulatory guidelines with solid earnings as evidenced by our second quarter results. Our customers and shareholders should feel secure and confident in our performance," said Frank Bell, President and CEO.
"We are very pleased with the Bank's second quarter 2009 results we have achieved. As with the first quarter of 2009, we continue to monitor our loan portfolio closely and placed a strong emphasis on increasing core deposits. We were able to continue to produce positive results for the second quarter of 2009 in spite of the continued challenges in the financial markets and weak economic conditions. This past quarter continued to present a challenging environment for the entire financial sector as it has been over the last 18 months," Bell stated.
"Our disciplined approach to the very challenging market also helped increase our net interest income due to the growth of loans and core deposits. Deposits increased $30 million from $171 million at December 31, 2008 to $201 million at June 30, 2009. It is important to note that the bank's deposit growth occurred from an increase in traditional deposit and savings products, not brokered CDs. Since March 31, 2009, net loans grew $8.7 million or 5.6%. We are also very pleased to report that deposits reached a record $201 million at June 30, 2009, an increase of $7 million or 3.6% from March 31, 2009.
Second quarter 2009 net interest income also grew by $78 thousand, compared to March 31, 2009. The Bank's net interest margin remained stable because of a reduction in total cost of funds, which was reflective of continued disciplined deposit pricing.
For the three months ending June 30, 2009, total assets increased 3.2 % while liabilities increased 3.3% compared to March 31, 2009. "The Bank's asset quality and capital position continues to remain strong. As our customer base continues to grow and we focus on serving our customers and shareholders we are confident we will continue to progress," Bell concluded.
In late August 2009, Bank of Virginia will be opening a new 3000 square foot branch office in Chesterfield County, Virginia, which will be a relocation of an existing retail storefront branch. Management feels positive that with the existing shareholder and customer base that surrounds the office, it will prove to be a positive addition to Bank of Virginia.
Bank of Virginia, a Virginia state chartered bank headquartered in Midlothian, Virginia currently operates five full-service offices in Chesterfield and Henrico Counties in Virginia. Bank of Virginia common stock is traded on the NASDAQ stock market under the quotation symbol "BOVA". Additional investor relations information can be found on the internet at www.bankofva.com.
DISCLAIMER
This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Bank's periodic filings with the Board of Governors of the Federal Reserve System, including the Bank's annual report on Form 10-KSB as filed with the Board of Governors of the Federal Reserve. Pursuant to the Private Securities Litigation Reform Act of 1995, the Bank does not undertake to update forward-looking statements contained within this news release.
BANK OF VIRGINIA
Statements of Operations
(Unaudited)
Three Months Six Months
and Period Ended and Period Ended
---------------------- ----------------------
June 30, June 30,
2009 2008 2009 2008
---------- ---------- ---------- ----------
Interest
Income:
Interest and fees
on loans $2,508,318 $2,492,291 $4,915,079 $5,022,232
Investment
securities 542,941 546,252 1,069,493 1,118,814
Interest on federal
funds sold and
deposits with banks 2,855 5,260 3,689 51,905
---------- ---------- ---------- ----------
Total interest
income 3,054,114 3,043,803 5,988,261 6,192,951
---------- ---------- ---------- ----------
Interest
Expense:
Interest on
deposits 1,478,573 1,587,608 2,906,374 3,356,887
Interest on fed
funds purchased and
FHLB borrowings 114,392 136,035 237,969 251,145
---------- ---------- ---------- ----------
Total interest
expense 1,592,965 1,723,643 3,144,343 3,608,032
---------- ---------- ---------- ----------
Net interest
income 1,461,149 1,320,160 2,843,918 2,584,919
Provision for
loan losses 70,525 30,000 140,274 143,251
---------- ---------- ---------- ----------
Net interest
income after
provision for
loan losses 1,390,624 1,290,160 2,703,644 2,441,668
---------- ---------- ---------- ----------
Non-interest
Income:
Service charges on
deposit accounts 55,779 51,579 94,002 104,060
Net gain on
available for sale
securities 96,431 68,568 155,932 123,664
Other fee income 50,168 32,366 97,547 64,494
---------- ---------- ---------- ----------
Total non-interest
income 202,378 152,513 347,481 292,218
---------- ---------- ---------- ----------
Non-interest
Expense:
Salaries and
employee benefits 779,817 778,051 1,573,226 1,551,230
Occupancy expense 109,599 105,203 223,690 204,676
Equipment expense 56,585 74,149 114,653 155,931
Data processing 119,304 105,371 226,629 202,337
Marketing expense 28,869 46,725 56,594 140,931
Legal and
professional fees 39,966 66,247 78,070 105,948
FDIC insurance
assessments 136,985 22,022 167,561 44,047
Other operating
expenses 179,721 188,426 367,257 361,320
---------- ---------- ---------- ----------
Total non-interest
expenses 1,450,846 1,386,194 2,807,680 2,766,420
---------- ---------- ---------- ----------
Net income (loss) $ 142,156 $ 56,479 $ 243,445 $ (32,534)
========== ========== ========== ==========
Income (loss) per
share, basic and
diluted $ 0.05 $ 0.02 $ 0.08 $ (0.01)
========== ========== ========== ==========
Weighted Average
Shares Outstanding:
Basic 3,031,866 3,031,866 3,031,866 3,031,866
========== ========== ========== ==========
Diluted 3,031,866 3,035,610 3,031,866 3,033,353
========== ========== ========== ==========
At period end:
Book value
per share 5.65 5.66
Market value
per share 3.96 6.30
BANK OF VIRGINIA
Balance Sheets
June 30, December 31,
2009 2008
Unaudited Audited
------------ ------------
Assets
Cash and due from banks $ 4,447,549 $ 2,608,500
Federal funds sold and interest-bearing
balances with banks 3,274,193 42,194
------------ ------------
7,721,742 2,650,694
Securities available for sale, at fair
market value 47,073,353 39,474,175
Restricted securities 1,531,200 1,534,550
Loans, net of allowance for loan losses
of $3,083,263 in 2009 and $2,942,988
in 2008 165,344,799 152,962,046
Premises and equipment, net 5,775,333 5,688,585
Accrued interest receivable 912,334 864,630
Other real estate owned 308,019 308,019
Other assets 241,991 229,220
------------ ------------
Total assets $228,908,771 $203,711,919
============ ============
Liabilities
Deposits:
Noninterest-bearing $ 17,713,107 $ 12,483,762
Savings and interest-bearing demand 24,554,017 18,770,259
Time, $100,000 and over 67,457,003 55,939,332
Other time 90,936,287 83,818,330
------------ ------------
Total deposits 200,660,414 171,011,683
Accrued expenses and other liabilities 1,127,263 1,208,215
FHLB borrowings 10,000,000 15,000,000
Federal funds purchased -- 176,000
------------ ------------
Total liabilities 211,787,677 187,219,898
------------ ------------
Stockholders' Equity
Preferred stock, $5 par value, 5,000,000
shares authorized, none issued -- --
Common stock, $2.50 par value, 40,000,000
shares authorized, 3,031,866 shares
issued and outstanding in 2009 and 2008,
respectively 7,579,665 7,579,665
Additional paid-in capital 14,710,809 14,705,508
Retained (deficit) (5,670,497) (5,913,941)
Accumulated other comprehensive
income (loss) 501,117 (55,211)
------------ ------------
Total stockholders' equity 17,121,094 16,316,021
------------ ------------
Total liabilities and
stockholders' equity $228,908,771 $203,535,919
============ ============
BANK OF VIRGINIA
Selected Historical Information
(Unaudited)
As of and for the Quarter Ended
June 30, March 31, Dec. 31, Sept. 30, June 30,
2009 2009 2008 2008 2008
--------- --------- --------- --------- ---------
Asset Quality
Analysis:
Allowance for
loan losses:
Beginning
balance 3,012,738 2,942,988 1,525,551 1,419,977 1,389,977
Provision 70,525 69,750 1,515,500 105,574 30,000
Charge-offs -- -- (98,063) -- --
Recoveries -- -- -- -- --
--------- --------- --------- --------- ---------
Net charge-offs -- -- (98,063) -- --
--------- --------- --------- --------- ---------
Ending
Balance 3,083,263 3,012,738 2,942,988 1,525,551 1,419,977
========= ========= ========= ========= =========
Nonperforming
Assets:
Nonaccrual
loans 1,021,367 -- 244,273 -- --
Foreclosed real
estate 308,019 308,019 308,019 -- --
Repossessions -- -- -- -- --
Loans 90 days or
more past due
and still
accruing 1,788,029 696,000 696,000 -- --
--------- --------- --------- --------- ---------
Non-
performing
assets 3,117,415 1,004,019 1,248,292 -- --
========= ========= ========= ========= =========
Allowance for
loan losses as
a percent of
loans 1.83% 1.89% 1.89% 1.00% 0.98%