MIDLOTHIAN, Va., May 18, 2010 (GLOBE NEWSWIRE) -- Bank of Virginia (Nasdaq:BOVA) (http://www.bankofva.com/">www.bankofva.com) announced the Bank's first quarter 2010 financial performance today.
For the first three months ended March 31, 2010, the Company reported a net loss of $359 thousand compared to a profit of $101 thousand for the same period in 2009. Net loss per common share was $0.08 (diluted) for the three months ended March 31, 2010, versus $0.03 per common share (diluted) earnings for the same period in 2009.
Operating results for the current period were impacted by an increase to the provision for loan loss in the amount of $326 thousand compared to $70 thousand for the same period in 2009. The Bank's reserve for loan losses at March 31, 2010 was $4.9 million or 2.93% of total loans compared to $5.2 million or 3.04% for year-end 2009. The Bank also incurred significant expenses associated with making improvements to its financial and risk management programs as part of the agreement with the Federal Reserve Bank.
Bank of Virginia's balance sheet remained relatively unchanged for the first quarter 2010. Assets totaled $217.1 million, a decrease of $4.4 million, or 2.4% for the three months ended March 31, 2010, from $221.5 million at December 31, 2009. Net loans were $163.3 million compared to $166.3 million at December 31, 2009. Total deposits were $189.3 million compared to $193.1 million for December 31, 2009. Nonperforming assets increased to $8.6 million as of March 31, 2010 or 3.98% of total assets, as compared to $7.0 million at December 31, 2009.
"During the first quarter of 2010, we were still affected by the decline in the economic conditions and real estate values surrounding our market areas. The Bank's results do however reflect the proactive measures that were taken earlier last year and first quarter to deal with uncertain market conditions. This includes the significant non-recurring expenses that were paid in the first quarter," said Frank Bell, president and CEO.
As in 2009, the Company continued to focus on improving the Bank's capital position in the first quarter. In April, the Bank announced a strategic partnership with Cordia Bancorp Inc., in which Cordia committed to invest up to $15 million in Bank of Virginia.
"While we maintain our position as 'well-capitalized' and meet all federal regulatory capital requirements, the additional capital from Cordia Bancorp will further strengthen Bank of Virginia, protect us during this difficult economic cycle, and position us for future growth and expansion in 2011 and beyond. Additionally, the board of directors of Bank of Virginia will be expanded to include six new members," said Bell.
Bell also commented, "We are pleased that the Cordia team will be partnering with Bank of Virginia and bringing their talent and over 110 years of combined banking experience to the Bank."
The Bank's focus in 2010 will be to continue with its business model, focusing on small businesses and individuals to provide them with premium financial services, technology and advice. In February, Bank of Virginia released electronic statements as part of its new online banking product set and has already realized a considerable number of customer conversions from paper to electronic statements. This new service provides a safe, convenient way to manage finances with Bank of Virginia.
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.
| STATEMENTS OF INCOME | ||||
| (Amounts in thousands, Except Share and Per Share Data)(Unaudited) | Three Months | |||
| Ended | ||||
| March 31, | ||||
| 2010 | 2009 | |||
| Interest | Interest and fees on loans | $ 2,450 | $ 2,407 | |
| Income | Interest on securities | 365 | 526 | |
| Interest on federal funds sold and deposits in banks | 2 | 1 | ||
| Total interest income | 2,817 | 2,934 | ||
| Interest | Interest on deposits | 1,094 | 1,428 | |
| Expense | Interest on borrowings | 115 | 123 | |
| Total interest expense | 1,209 | 1,551 | ||
| Net interest income | 1,608 | 1,383 | ||
| Provision for loan losses | 326 | 70 | ||
| Net interest income after provision for | ||||
| loan losses | 1,282 | 1,313 | ||
| Non-Interest | Service charges on deposit accounts | 37 | 38 | |
| Income | Other operating income | 30 | 47 | |
| Gain on securities | 94 | 60 | ||
| Total non-interest income | 161 | 145 | ||
| Non-Interest | Salaries and employee benefits | 830 | 793 | |
| Expense | Occupancy expense of bank premises | 173 | 114 | |
| Furniture and equipment expense | 89 | 58 | ||
| Other operating expense | 710 | 392 | ||
| Total non-interest expense | 1,802 | 1,357 | ||
| Income tax expense | -- | -- | ||
| Net (loss) income | $ (359) | $ 101 | ||
| Basic (loss) earnings per common share | $ (0.08) | $ 0.03 | ||
| Diluted (loss) earnings per common share | $ (0.08) | $ 0.03 | ||
| For the period: | ||||
| Annualized return on average equity | -8.37% | 2.46% | ||
| Annualized return on average assets | -0.67% | 0.19% | ||
| At period end: | ||||
| Book value per share | $ 3.69 | $ 5.54 | ||
| Market value | $ 3.15 | $ 3.40 | ||
| BALANCE SHEETS | |||
| (Amounts in thousands, Except Share Data)(Unaudited) | |||
| March 31, | December 31, | ||
| 2010 | 2009 | ||
| Assets | Cash and due from banks | $ 3,840 | $ 4,597 |
| Federal funds sold and interest-bearing deposits with banks | 10,592 | 3,528 | |
| Total cash and cash equivalents | 14,432 | 8,125 | |
| Securities available for sale | 30,304 | 38,109 | |
| Restricted securities | 1,574 | 1,475 | |
| Loans held for investment, net of unearned income | 168,280 | 171,564 | |
| Less allowance for loan losses | 4,932 | 5,222 | |
| Net loans held for investment | 163,348 | 166,342 | |
| Premises and equipment | 5,835 | 5,631 | |
| Interest receivable | 802 | 849 | |
| Other assets | 841 | 1,021 | |
| Total Assets | $ 217,136 | $ 221,552 | |
| Liabilities | Deposits: | ||
| Non-interest-bearing demand | $ 13,529 | $ 14,701 | |
| Savings and interest-bearing demand | 31,678 | 30,212 | |
| Time | 144,146 | 148,230 | |
| Total Deposits | 189,353 | 193,143 | |
| Accrued expenses and other liabilities | 966 | 1,213 | |
| FHLB borrowings and other indebtedness | 10,000 | 10,000 | |
| Total Liabilities | 200,319 | 204,356 | |
| Stockholders' | Preferred stock, $5.00 par value; 5,000,000 shares | ||
| Equity | authorized; no shares issued and outstanding in 2009 and 2008 | -- | -- |
| Common stock, $2.50 par value; 40,000,000 shares authorized; | |||
| 3,031,866 and outstanding in 2009 and 2008, respectively | 11,380 | 11,380 | |
| Additional paid-in capital | 14,922 | 14,975 | |
| Retained deficit | (10,485) | (10,126) | |
| Accumulated other comprehensive income | 1,000 | 967 | |
| Total Stockholders' Equity | 16,817 | 17,196 | |
| Total Liabilities and | |||
| Stockholders' Equity | $ 217,136 | $ 221,552 | |
| BANK OF VIRGINIA | |||||
| Selected Historical Information | |||||
| (Unaudited) | |||||
| As of and for the Quarter Ended | |||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |
| 2010 | 2009 | 2009 | 2009 | 2009 | |
| Asset Quality Analysis: | |||||
| Allowance for loan losses: | |||||
| Beginning balance | 5,222,023 | 4,476,947 | 4,690,071 | 3,012,738 | 2,942,988 |
| Provision | 325,885 | 1,024,951 | (181,575) | 3,570,525 | 69,750 |
| Charge-offs | (616,159) | (279,875) | (31,549) | (1,893,192) | -- |
| Recoveries | -- | -- | -- | -- | -- |
| Net charge-offs | (616,159) | (279,875) | (31,549) | (1,893,192) | -- |
| Ending Balance | 4,931,749 | 5,222,023 | 4,476,947 | 4,690,071 | 3,012,738 |
| Nonperforming Assets: | |||||
| Nonaccrual loans | 8,277,454 | 6,453,472 | 5,065,056 | 4,541,510 | -- |
| Foreclosed real estate | 358,535 | 578,535 | 308,019 | 308,019 | 308,019 |
| Loans 90 days or more past due and still accruing | -- | -- | -- | 768,088 | 3,197,350 |
| Nonperforming assets | 8,635,989 | 7,032,007 | 5,373,075 | 5,617,617 | 3,505,369 |
| Allowance for loan losses as a percent of loans | 2.93% | 3.04% | 2.62% | 2.82% | 1.89% |
| Non-performing assets to total assets | 3.98% | 3.17% | 2.37% | 2.49% | 1.58% |