MIDLOTHIAN, Va., Oct. 21, 2008 (GLOBE NEWSWIRE) -- Frank Bell, III, President and Chief Executive Officer of Bank of Virginia (Nasdaq:BOVA) (www.bankofva.com), announced the Bank's third quarter 2008 financial performance today. The Bank reported a profit of $117 thousand or $0.04 cents per basic and diluted earnings per share. These results continue to demonstrate the Bank's dedication to concentrate on growing earnings during this challenging financial environment. In addition, the 3rd Quarter 2008 results represent an increase of 108% in earnings compared to $56 thousand in quarterly earnings reported as of June 30, 2008.
"Given the turmoil and current economic conditions of the banking industry, we are very pleased with the quarterly and year-to-date results we have achieved," said Frank Bell, President and CEO of Bank of Virginia. "As with the 2nd quarter 2008, we continued to monitor our loan portfolio closely and placed a strong emphasis on increasing core deposits. We were able to maintain our loan portfolio at the projected targets for the quarter and successfully increased our deposits. In fact, for the quarter, total deposits grew 6% to $168 million reported September 30, 2008.
"As a local community bank, we are pleased that we are not linked to the many issues that are impacting some banks at this time. While the effects of Wall Street are affecting consumer confidence, we feel very strongly about our position. Bank of Virginia is a well-capitalized and strong community bank, which means our customers and shareholders should feel secure and confident in our performance," said Frank Bell.
For 12 months ending September 30, 2008, total assets increased 15% while liabilities increased 17% compared to September 2007. As of September 30, 2008, total deposits were $168 million compared to year-end 2007 balances of $155 million. While non-performing assets did increase at quarter-end by $117 thousand, the underlying collateral is in the process of being liquidated. Management feels that any potential loss is adequately covered by our current loan loss provision and remains pleased with the performance of the loan portfolio in general and will continue to monitor its performance closely.
"Our asset quality and capital position continues to remain strong. In fact, we recently received a 4-star rating from Bauer Financial, Inc. on our performance. 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.
The Bank 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 and Nine Months and
Period Ended Period Ended
----------------------- -----------------------
September 30, September 30,
2008 2007 2008 2007
---------- ---------- ---------- ----------
Interest Income:
Interest and fees
on loans $2,602,195 $2,458,778 $7,624,427 $6,908,753
Investment
securities 517,698 394,440 1,636,512 1,032,743
Interest on federal
funds sold and
deposits with banks 12,384 85,556 64,289 271,065
---------- ---------- ---------- ----------
Total interest
income 3,132,277 2,938,774 9,325,228 8,212,561
---------- ---------- ---------- ----------
Interest Expense:
Interest on
deposits 1,550,136 1,511,991 4,907,023 4,257,835
Interest on fed
funds purchased
and FHLB
borrowings 144,348 96,538 395,493 207,067
---------- ---------- ---------- ----------
Total interest
expense 1,694,484 1,608,529 5,302,516 4,464,902
---------- ---------- ---------- ----------
Net interest
income 1,437,793 1,330,245 4,022,712 3,747,659
Provision for loan
losses 105,574 55,404 248,825 247,169
---------- ---------- ---------- ----------
Net interest
income after
provision for
loan losses 1,332,219 1,274,841 3,773,887 3,500,490
---------- ---------- ---------- ----------
Non-interest Income:
Service charges on
deposit accounts 63,991 29,530 168,051 84,016
Net gain on
available for
sale securities 25,405 460 149,069 460
Other fee income 35,273 23,098 99,767 60,644
---------- ---------- ---------- ----------
Total non-
interest income 124,669 53,088 416,887 145,120
---------- ---------- ---------- ----------
Non-interest Expense:
Salaries and
employee benefits 789,538 704,681 2,340,768 1,965,350
Occupancy expense 99,844 76,281 304,520 241,042
Equipment expense 80,259 52,373 236,190 156,084
Data processing 106,526 88,084 308,863 253,627
Marketing expense 20,948 31,869 161,879 104,006
Legal and
professional fees 46,684 36,464 152,632 107,829
Other operating
expenses 195,782 149,481 601,149 405,119
---------- ---------- ---------- ----------
Total non-
interest
expenses 1,339,581 1,139,233 4,106,001 3,233,057
---------- ---------- ---------- ----------
Net income $ 117,307 $ 188,696 $ 84,773 $ 412,553
========== ========== ========== ==========
Income per share,
basic and diluted $ 0.04 $ 0.06 $ 0.03 $ 0.14
========== ========== ========== ==========
Weighted Average
Shares
Outstanding:
Basic 3,031,866 3,031,866 3,031,866 3,031,866
========== ========== ========== ==========
Diluted 3,031,866 3,031,866 3,033,028 3,032,518
========== ========== ========== ==========
At period end:
Book value per
share 5.79 5.81
Market value per
share 5.00 7.33
BANK OF VIRGINIA
Balance Sheets
September 30, December 31,
2008 2007
Unaudited Audited
------------- -------------
Assets:
Cash and due from banks $ 2,409,003 $ 4,183,359
Federal funds sold and interest-
bearing balances with banks 3,929,945 4,771,376
------------- -------------
6,338,948 8,954,735
Securities available for sale,
at fair market value 37,817,395 37,641,272
Loans, net of allowance for loan
losses of $1,525,551 in 2008 and
$1,276,726 in 2007 150,635,879 130,805,447
Premises and equipment, net 5,744,482 5,532,009
Accrued interest receivable 845,918 857,853
Other assets 346,140 217,311
------------- -------------
Total assets $ 201,728,762 $ 184,008,627
============= =============
Liabilities:
Deposits:
Noninterest-bearing $ 13,800,216 $ 13,020,632
Savings and interest-bearing
demand 19,103,006 17,122,793
Time, $100,000 and over 52,445,301 46,155,151
Other time 82,661,791 78,586,170
------------- -------------
Total deposits 168,010,314 154,884,746
Accrued expenses and other
liabilities 1,153,092 1,119,459
FHLB borrowings and other
indebtedness 15,000,000 10,000,000
------------- -------------
Total liabilities 184,163,406 166,004,205
------------- -------------
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 2008 and 2007,
respectively 7,579,665 7,579,665
Additional paid-in capital 14,702,363 14,693,218
Retained (deficit) (4,514,573) (4,599,346)
Accumulated other comprehensive
(loss) income (202,099) 330,885
------------- -------------
Total stockholders' equity 17,565,356 18,004,422
------------- -------------
Total liabilities and
stockholders' equity $ 201,728,762 $ 184,008,627
============= =============
BANK OF VIRGINIA
Selected Historical Information
(Unaudited)
As of and for the Quarter Ended
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2008 2008 2008 2007 2007
--------- --------- --------- --------- ---------
Asset Quality
Analysis:
Allowance for
loan losses:
Beginning
balance 1,419,977 1,389,977 1,276,726 1,178,361 1,122,957
Provision 105,574 30,000 113,251 98,365 55,404
Charge-
offs -- -- -- -- --
Recoveries -- -- -- -- --
--------- --------- --------- --------- ---------
Net charge-
offs -- -- -- -- --
--------- --------- --------- --------- ---------
Ending
Balance 1,525,551 1,419,977 1,389,977 1,276,726 1,178,361
========= ========= ========= ========= =========
Nonperforming
Assets:
Nonaccrual
loans 413,465 296,415 -- -- --
Foreclosed
real estate -- -- -- -- --
Repossessions -- -- -- -- --
--------- --------- --------- --------- ---------
Nonperforming
assets 413,465 296,415 -- -- --
========= ========= ========= ========= =========
Allowance for
loan & lease
losses as a
percent of
loans 1.00% 0.98% 0.97% 0.97% 0.96%