MIDLOTHIAN, Va., Nov. 5, 2007 (PRIME NEWSWIRE) -- Bank of Virginia (Nasdaq:BOVA) (www.bankofva.com) today reported third quarter 2007 earnings of $189,000 or basic and diluted earnings of $0.06 per share for the quarter. This represents a 58.8% increase from $119,000 or basic and diluted earnings per share of $0.04 for the second quarter of 2007. This income level is more than double the $81,000 or basic and diluted earnings per share of $0.03 for the third quarter of 2006.
Year-to-date earnings were $413,000 or basic and diluted earnings per share of $0.14, resulting in a $404,000 increase over the comparable period of 2006, which reflected net income of $9,000 or basic and diluted earnings per share of less than $0.01 for the nine months ended September 30, 2006. Return on average assets was 0.36% and return on average equity was 3.20% for the first nine months of 2007.
The Company achieved its performance by finishing the quarter with assets of $175.3 million. As part of its continued success, the balance sheet showed continued growth driven by a strong loan portfolio and a good continual level of cost control. Net loans increased from $97.1 million to $121.8 million during the first nine months of 2007, representing a 25.4% increase for the year. Deposit balances grew steadily in support of loan demand and were $146.6 million at September 30, 2007 in comparison to $111.5 million at December 31, 2006.
Frank Bell, President and Chief Executive Officer, said, "We are very pleased with our results not only this quarter but the entire year. This has been a very positive year for Bank of Virginia thus far and we are delighted in our growth." The Bank continues to maintain very strong credit quality and reflected no net charge offs for the year and also reported no non-performing assets at September 30, 2007.
The Company relocated its Robious Road office to a more favorable, full-service location on Branchway Road in Richmond, VA near a regional shopping mall. The Company believes that this new location has provided the bank with better visibility and increased its traffic flow.
Bank of Virginia will open a new 4,500 square foot office in western Henrico County, Virginia. This new location will be the Bank's 5th branch office. Construction is well under way and the branch is expected to be open for business in early January 2008. This Patterson Avenue office will provide Bank of Virginia with increased visibility and will help grow the Bank's presence in the greater Richmond market area.
The Bank currently operates four full-service offices in Chesterfield County, Virginia. Bank of Virginia common stock is traded on the NASDAQ stock market under the quotation symbol "BOVA". Additional investor relation 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 Ended Nine Months Ended
---------------------- ----------------------
September 30, September 30,
2007 2006 2007 2006
---------- ---------- ---------- ----------
Interest Interest and
Income: fees on
loans $2,458,778 $1,755,382 $6,908,753 $4,350,411
Investment
securities 394,440 247,641 1,032,743 748,912
Interest on
federal
funds sold
and deposits
with banks 85,556 34,106 271,065 87,073
---------- ---------- ---------- ----------
Total
interest
income 2,938,774 2,037,129 8,212,561 5,186,396
---------- ---------- ---------- ----------
Interest Interest on
Expense: deposits 1,511,991 918,133 4,257,835 2,121,840
Interest on
fed funds
purchased
and FHLB
borrowings 96,538 70,980 207,067 236,254
---------- ---------- ---------- ----------
Total
interest
expense 1,608,529 989,113 4,464,902 2,358,094
---------- ---------- ---------- ----------
Net
interest
income 1,330,245 1,048,016 3,747,659 2,828,302
Provision
for loan
losses 55,404 66,153 247,169 283,053
---------- ---------- ---------- ----------
Net
interest
income
after
provision
for loan
losses 1,274,841 981,863 3,500,490 2,545,249
---------- ---------- ---------- ----------
Non-
interest Service
Income: charges on
deposit
accounts 29,530 21,688 84,016 60,523
Net gain on
available
for sale
securities 460 0 460 3,356
Other fee
income 23,098 20,789 60,644 50,318
---------- ---------- ---------- ----------
Total
non-
interest
income 53,088 42,477 145,120 114,197
---------- ---------- ---------- ----------
Non-
interest Salaries and
Expense: employee
benefits 704,681 556,683 1,965,350 1,603,043
Occupancy
expense 76,281 76,184 241,042 202,363
Equipment
expense 52,373 52,333 156,084 136,709
Data
processing 88,084 59,398 253,627 179,391
Marketing
expense 31,869 34,562 104,006 87,643
Legal and
professional
fees 36,464 28,201 107,829 71,082
Other
operating
expenses 149,481 135,828 405,119 370,165
---------- ---------- ---------- ----------
Total non-
interest
expense 1,139,233 943,189 3,233,057 2,650,396
---------- ---------- ---------- ----------
Net income $ 188,696 $ 81,151 $ 412,553 $ 9,050
========== ========== ========== ==========
Income per
share,
basic and
diluted $ 0.06 $ 0.03 $ 0.14 $ 0.00
========== ========== ========== ==========
Weighted
Average
Shares
Outstanding:
Basic 3,031,866 3,031,866 3,031,866 3,031,866
========== ========== ========== ==========
Diluted 3,032,518 3,031,866 3,031,866 3,031,866
========== ========== ========== ==========
At period end:
Book value
per share 5.81 5.59
Market
value per
share 7.33 8.10
BANK OF VIRGINIA
Balance Sheets
September 30, December 31,
2007 2006
Unaudited Audited
------------- -------------
Assets Cash and due from banks $ 3,814,588 $ 3,681,489
Federal funds sold and
interest-bearing
balances with banks 7,960,833 4,859,700
------------- -------------
11,775,421 8,541,189
Securities available for
sale, at fair market
value 36,231,896 23,924,065
Loans, net of allowance
for loan losses of
$1,178,361 in 2007 and
$931,192 in 2006 121,784,824 97,083,314
Premises and equipment,
net 4,355,511 3,851,209
Accrued interest
receivable 872,494 698,736
Other assets 266,539 196,836
------------- -------------
Total assets $ 175,286,685 $ 134,295,349
============= =============
Liabilities Deposits:
Noninterest-bearing $ 11,285,451 $ 9,484,012
Savings and interest-
bearing demand 16,261,398 15,242,879
Time, $100,000 and over 44,447,362 33,293,747
Other time 74,598,340 53,452,844
------------- -------------
Total deposits 146,592,551 111,473,482
Accrued expenses and other
liabilities 1,082,935 759,748
FHLB borrowings 10,000,000 5,000,000
------------- -------------
Total liabilities 157,675,486 117,233,230
------------- -------------
Stockholders' Preferred stock, $5 par
Equity 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 2007 and
2006, respectively 7,579,665 7,579,665
Additional paid-in capital 14,677,588 14,630,698
Retained (deficit) (4,693,289) (5,105,842)
Accumulated other
comprehensive income
(loss) 47,235 (42,402)
------------- -------------
Total stockholders'
equity 17,611,199 17,062,119
------------- -------------
Total liabilities and
stockholders' equity $ 175,286,685 $ 134,295,349
============= =============
BANK OF VIRGINIA
Selected Historical Information
(Unaudited)
As of and for the Quarter Ended
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2007 2007 2007 2006 2006
--------- --------- --------- --------- ---------
Asset Quality
Analysis:
Allowance for loan
losses:
Beginning balance 1,122,957 1,018,029 931,192 829,750 763,597
Provision 55,404 104,928 86,837 101,442 66,153
Charge-offs -- -- -- -- --
Recoveries -- -- -- -- --
--------- --------- --------- --------- ---------
Net charge-offs -- -- -- -- --
--------- --------- --------- --------- ---------
Ending Balance 1,178,361 1,122,957 1,018,029 931,192 829,750
========= ========= ========= ========= =========
Nonperforming
Assets:
Nonaccrual loans -- -- -- -- --
Foreclosed real
estate -- -- -- -- --
Repossessions -- -- -- -- --
Loans 90 days or
more past due and
still accruing -- -- -- -- --
--------- --------- --------- --------- ---------
Nonperforming
assets -- -- -- -- --
========= ========= ========= ========= =========
Allowance for loan
losses as a
percent of loans 0.97% 0.95% 0.94% 0.95% 0.94%