MIDLOTHIAN, Va., Sept. 18, 2009 (GLOBE NEWSWIRE) -- Bank of Virginia (Nasdaq:BOVA) (www.bankofva.com) (the "Bank") today announced that, in connection with an examination of the Bank by the Federal Reserve Bank of Richmond (the "Federal Reserve"), management and the Audit Committee of the Board of Directors determined it was prudent to charge off approximately $1.9 million in loans as of June 30, 2009 and that this would result in an increase of about $3.5 million to the provision for loan losses for the second quarter of 2009. Net income, as adjusted, decreased to a loss of $3.4 million, or $1.11 per basic and diluted share. Based upon these findings, management and the Audit Committee determined on September 17, 2009 that the Bank's financial statements for the quarterly period ended June 30, 2009 should be restated. This determination has been discussed and agreed with the Bank's independent accountants, Yount, Hyde & Barbour, P.C.
An amended Form 10-Q for the quarter ended June 30, 2009 has been filed with the Board of Governors of the Federal Reserve System.
In addition, the Bank today announced the modification of its previously announced offering of up to $7.5 million aggregate principal amount of 9.00% fixed rate convertible subordinated notes due 2024. The Bank anticipates that, as modified, it will offer up to $10.0 million of investment units at $100 per unit. Each investment unit is expected to consist of a to be determined number of shares of the Bank's common stock with a total value of approximately $25 and three 9.00% fixed rate convertible subordinated notes due 2024 with a principal amount $25 per note that will be convertible into a to be determined number of shares. McKinnon & Company, Inc. will serve as the underwriter for this offering and will conduct the offering on a best-efforts basis.
The Bank intends to use the net proceeds from the offering to increase regulatory capital and to support its continuing expansion through additional investment and lending activities.
The securities being offered have not been, and will not be, registered under the Securities Act of 1933, as amended (the "Securities Act") or any state securities laws, and are being offered and sold in reliance on exemptions from the registration requirements of the Securities Act and such state laws. A copy of the offering circular relating to the offering may be obtained from McKinnon & Company, Inc., Norfolk, Virginia (www.mckinnonco.com) by telephone at (800) 853-4636.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
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-K 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.