MIDLOTHIAN, Va., March 26, 2010 (GLOBE NEWSWIRE) -- Bank of Virginia (Nasdaq:BOVA) (http://www.bankofva.com/">www.bankofva.com) today announced financial results for its fourth quarter and year ended December 31, 2009, reflecting the impact of current economic conditions.
For the three months ended December 31, 2009, the Company reported a net loss of $1.5 million and diluted loss per common share of $0.48. For the year ended December 31, 2009, the Company reported a net loss of $4.2 million and diluted loss per common share of $1.39.
In 2009, results were significantly impacted by an increase in provision for loan losses to $4.5 million for 2009 as compared to $1.8 million in 2008. The Bank's reserve for loan losses at December 31, 2009 was $5.2 million or 3.04% of total loans as compared to $2.9 million or 1.89% for year-end 2008. Additionally, results were affected by an unprecedented FDIC Deposit Insurance Fund special assessment of over $100,000. This assessment (based on asset size) was imposed on all FDIC insured institutions. The Bank also incurred significant expenses associated with improving its financial and risk management programs.
"The current economic conditions and real estate values continue to hamper financial institutions and especially smaller, community banks like Bank of Virginia. Not only have the decreased values weakened commercial credits, but this also is indirectly attributable to a special, one-time FDIC insurance premium. The combination of the aforementioned events as well as economic trends, increased fees associated with improving our risk management programs and costs associated with a core system conversion completed in third quarter 2009 that was necessary for growth, caused us to experience a net loss for 2009," said Bell.
During the fourth quarter of 2009, the Company continued to focus on the Bank's capital position. In conjunction with the current initiative to raise capital, Bank of Virginia received $4.1 million in capital at year-end 2009, making the Bank "well-capitalized" by regulatory standards. "With today's current economic conditions and resulted heightened regulatory scrutiny, having a strong capital position is critical for the success of our Bank," said Bell.
Additional highlights at December 31, 2009 and for the fourth quarter of 2009 include:
- Total assets at December 31, 2009 were $221.5 million compared with $203.7 million a year ago.
- Net loans were $166.3 million at December 31, 2009 compared with $153.0 million last year.
- Total deposits at December 31, 2009 were $193.1 million compared with $171.0 million at December 31, 2008.
Although the Company did experience a loss for the quarter and the year, the balance sheet showed continual growth. At year-end 2009, total assets were just over $221 million, an increase of $18 million or 8.75% from year-end 2008. During 2009, the Bank consistently increased its total core deposits and loan volume. Total deposits were $193 million, up $22 million, or 13% over the year-ended 2008. At December 31, 2009, total net loans were $166 million compared to $153 million at December 31, 2008, an increase of $13 million or 8.75%.
"We are encouraged to report that during 2009 we were able to have solid growth in both core deposits and loans, considering the economic conditions that we, among many of our peers, are operating. Our focus in 2010 will be to continue with our strong business model, focusing on small businesses and individuals residing in our market area to provide them with premium financial services, technology and advice to help them prosper," Bell stated.
Also in 2009, Bank of Virginia reported completed the following achievements outlined below:
- The Bank celebrated its five-year anniversary of operation with five full-service locations in Chesterfield and Henrico Counties, VA.
- In the spring of 2009, Bank of Virginia was awarded the Community Impact Award by the Chesterfield Economic Development Authority for its community involvement and dedication.
- The Bank relocated an existing storefront branch in August 2009 to a new 3000 square foot office in Chesterfield County, VA.
- Completed a core system conversion in September 2009, moving processing and technology solutions to Fidelity National Information Services®, which was a planned strategic initiative to address technology and service enhancements and aid in future cost savings.
Bank of Virginia, a Virginia state chartered bank headquartered in Midlothian, Virginia currently operates five full-service offices in the counties of Chesterfield and Henrico, 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 http://www.bankofva.com/">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.
| BANK OF VIRGINIA | |||||
| Statements of Operations | |||||
| (Unaudited) | |||||
| Three Months and Period Ended | Twelve Months and Period Ended | ||||
| December 31, | December 31, | ||||
| 2009 | 2008 | 2009 | 2008 | ||
|
Interest Income: |
Interest and fees on loans | $ 2,579,445 | $ 2,596,383 | $ 10,041,122 | $ 10,220,810 |
| Investment securities | 444,384 | 505,034 | 2,042,383 | 2,141,546 | |
| Interest on federal funds sold and deposits with banks | 1,417 | 826 | 7,019 | 65,115 | |
| Total interest income | 3,025,246 | 3,102,243 | 12,090,524 | 12,427,471 | |
|
Interest Expense: |
Interest on deposits | 1,235,940 | 1,525,788 | 5,531,975 | 6,432,811 |
| Interest on fed funds purchased and FHLB borrowings | 112,296 | 137,565 | 466,038 | 533,058 | |
| Total interest expense | 1,348,236 | 1,663,353 | 5,998,013 | 6,965,869 | |
| Net interest income | 1,677,010 | 1,438,890 | 6,092,511 | 5,461,602 | |
| Provision for loan losses | 1,024,951 | 1,515,500 | 4,483,650 | 1,764,325 | |
| Net interest income after provision for loan losses | 652,059 | (76,610) | 1,608,861 | 3,697,277 | |
| Non-interest Income: | Service charges on deposit accounts | 45,597 | 38,405 | 182,040 | 206,456 |
| Net gain on available for sale securities | 5,994 | 37,628 | 281,287 | 186,697 | |
| Other fee income | 29,209 | 40,551 | 173,651 | 140,318 | |
| Total non-interest income | 80,800 | 116,584 | 636,978 | 533,471 | |
| Non-interest Expense: | Salaries and employee benefits | 840,531 | 769,468 | 3,240,723 | 3,110,236 |
| Occupancy expense | 187,400 | 105,902 | 516,298 | 410,422 | |
| Equipment expense | 89,578 | 81,908 | 260,589 | 318,098 | |
| Data processing | 126,564 | 148,946 | 480,628 | 457,809 | |
| Marketing expense | 56,835 | 9,214 | 144,207 | 171,093 | |
| Legal and professional fees | 231,873 | 86,812 | 351,913 | 239,444 | |
| FDIC insurance assessments | 225,043 | 39,765 | 428,949 | 106,076 | |
| Other operating expenses | 461,274 | 197,327 | 1,034,958 | 732,165 | |
| Total non-interest expenses | 2,219,098 | 1,439,342 | 6,458,265 | 5,545,343 | |
| Net income (loss) | $ (1,486,239) | $ (1,399,368) | $ (4,212,426) | $ (1,314,595) | |
| Income (loss) per share, basic and diluted | $ (0.48) | $ (0.46) | $ (1.39) | $ (0.43) | |
| Weighted Average Shares Outstanding: | |||||
| Basic | 3,064,909 | 3,031,866 | 3,040,195 | 3,031,866 | |
| Diluted | 3,064,909 | 3,031,866 | 3,040,195 | 3,031,866 | |
| At period end: | |||||
| Book value per share | 3.78 | 5.38 | |||
| Market value per share | 3.29 | 3.40 | |||
| Tangible common equity to assets | 7.76% | 8.01% | |||
| BANK OF VIRGINIA | |||
| Balance Sheets | |||
| December 31, | December 31, | ||
| 2009 | 2008 | ||
| Unaudited | Audited | ||
| Assets | Cash and due from banks | $ 4,596,953 | $ 2,608,500 |
| Federal funds sold and interest-bearing balances with banks | 3,527,759 | 42,194 | |
| 8,124,712 | 2,650,694 | ||
| Securities available for sale, at fair market value | 38,109,075 | 39,474,175 | |
| Restricted securities | 1,475,350 | 1,534,550 | |
| Loans, net of allowance for loan losses of $5,222,023 in 2009 | |||
| and $2,942,988 in 2008 | 166,342,222 | 152,962,046 | |
| Premises and equipment, net | 5,630,860 | 5,688,585 | |
| Accrued interest receivable | 849,201 | 864,630 | |
| Other real estate owned | 578,535 | 308,019 | |
| Other assets | 441,565 | 229,220 | |
| Total assets | $ 221,551,520 | $ 203,711,919 | |
| Liabilities | Deposits: | ||
| Noninterest-bearing | $ 14,701,106 | $ 12,483,762 | |
| Savings and interest-bearing demand | 30,211,719 | 18,770,259 | |
| Time, $100,000 and over | 60,631,093 | 55,939,332 | |
| Other time | 87,598,774 | 83,818,330 | |
| Total deposits | 193,142,692 | 171,011,683 | |
| Accrued expenses and other liabilities | 1,213,562 | 1,208,215 | |
| FHLB borrowings | 10,000,000 | 15,000,000 | |
| Federal funds purchased | -- | 176,000 | |
| Total liabilities | 204,356,254 | 187,395,898 | |
|
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, 4,551,866 | |||
| shares issued and outstanding in 2009 and 3,031,866 | |||
| shares issued and outstanding in 2008 | 11,379,665 | 7,579,665 | |
| Additional paid-in capital | 14,975,103 | 14,705,508 | |
| Retained (deficit) | (10,126,367) | (5,913,941) | |
| Accumulated other comprehensive income (loss) | 966,865 | (55,211) | |
| Total stockholders' equity | 17,195,266 | 16,316,021 | |
| Total liabilities and stockholders' equity | $ 221,551,520 | $ 203,711,919 | |
| BANK OF VIRGINIA | |||||
| Selected Historical Information | |||||
| (Unaudited) | |||||
| As of and for the Quarter Ended | |||||
| Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | |
| 2009 | 2009 | 2009 | 2009 | 2008 | |
| Asset Quality Analysis: | |||||
| Allowance for loan losses: | |||||
| Beginning balance | 4,476,947 | 4,690,071 | 3,012,738 | 2,942,988 | 1,525,551 |
| Provision | 1,024,951 | (181,575) | 3,570,525 | 69,750 | 1,515,500 |
| Charge-offs | (279,875) | (31,549) | (1,893,192) | -- | (98,063) |
| Recoveries | -- | -- | -- | -- | -- |
| Net charge-offs | (279,875) | (31,549) | (1,893,192) | -- | (98,063) |
| Ending Balance | 5,222,023 | 4,476,947 | 4,690,071 | 3,012,738 | 2,942,988 |
| Nonperforming Assets: | |||||
| Nonaccrual loans | 6,453,472 | 5,065,056 | 4,541,510 | -- | 244,273 |
| Foreclosed real estate | 578,535 | 308,019 | 308,019 | 308,019 | 308,019 |
| Loans 90 days or more past due and still accruing | -- | -- | 768,088 | 3,197,350 | 696,000 |
| Nonperforming assets | 7,032,007 | 5,373,075 | 5,617,617 | 3,505,369 | 1,248,292 |
| Allowance for loan losses as a percent of loans | 3.04% | 2.62% | 2.82% | 1.89% | 1.89% |
| Non-performing assets to total assets | 3.17% | 2.37% | 2.49% | 1.58% | 0.61% |