MIDLOTHIAN, Va., May 13, 2009 (GLOBE NEWSWIRE) -- Frank Bell, III, President and Chief Executive Officer of Bank of Virginia (Nasdaq:BOVA) (www.bankofva.com) announced the Bank's first quarter 2009 financial performance today. The Bank reported a profit of $101 thousand or $0.03 cents per basic and diluted earnings per share. These positive results continue to demonstrate the Bank's dedication to concentrate on growing earnings during this challenging financial environment. In addition, the 1st Quarter 2009 results represent an increase in earnings compared to an $89 thousand loss in quarterly earnings reported March 31, 2008.
"The first quarter of 2009 continued to present challenges for the financial sector. Despite this economic turmoil, we did experience significant growth during this period. We are hopeful this will continue to lead to increasing profitability," stated Frank Bell, President and CEO.
"Our disciplined approach to the very challenging market was a key to our first quarter success. As of March 31, 2009, total assets were $222 million, up $18 million or 8.9% over the past three months. Since December 31, 2008, net loans grew $3.7 million or 2.4%. We are also very pleased to report that deposits reached a record $194 million at March 31, 2009, an increase of $22.8 million or 13.4% since December 31, 2008," he continued.
First quarter net interest income grew 9.3% to $1.3 million, an increase of $118 thousand compared to March 31, 2008. The Bank's stable margin was the result of a reduction in total cost of funds, which was the result of continued management of deposit pricing.
"Given the current economic conditions of the banking industry, we are very pleased with the Bank's first quarter 2009 results," said Frank Bell, President and CEO of Bank of Virginia. "As we did in 2008, we continue to monitor our loan portfolio closely and placed a strong emphasis on increasing core deposits."
"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 the three months ending March 31, 2009, total assets increased 8.9 % while liabilities increased $17.7 million or 9.4% compared to December 31 2008. "The Bank's asset quality and capital position continue to remain strong. As our customer base grows and we focus on serving our customers and shareholders, we are confident we will continue to progress," Bell concluded.
Bank of Virginia officially broke ground on a 3000 square foot branch office in Chesterfield County, Virginia, which will be a relocation of an existing retail storefront branch. The expected date of opening is late Summer 2009. Management feels positive that with the existing shareholder and customer base that surrounds the office, it will prove to be a positive addition to Bank of Virginia.
Bank of 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.
STATEMENTS OF INCOME
-------------------------------------------------- -------------------
(Amounts in thousands, Except Share and Per Three Months
Share Data)(Unaudited) Ended
March 31,
-----------------
2009 2008
-----------------
Interest Interest and fees on loans $ 2,407 $ 2,530
Income Interest on securities 526 572
Interest on federal funds sold and
deposits in banks 1 47
-------------------------------------------------- -----------------
Total interest income 2,934 3,149
-------------------------------------------------- -----------------
Interest Interest on deposits 1,428 1,769
Expense Interest on borrowings 123 116
-------------------------------------------------- -----------------
Total interest expense 1,551 1,885
-------------------------------------------------- -----------------
Net interest income 1,383 1,264
Provision for loan losses 70 113
-------------------------------------------------- -----------------
Net interest income after provision
for loan losses 1,313 1,151
-------------------------------------------------- -----------------
Non-Interest Service charges on deposit accounts 38 53
Income Other operating income 47 32
Gain on securities 60 55
-------------------------------------------------- -----------------
Total non-interest income 145 140
-------------------------------------------------- -----------------
Non-Interest Salaries and employee benefits 793 773
Expense Occupancy expense of bank premises 114 100
Furniture and equipment expense 58 82
Other operating expense 392 425
-------------------------------------------------- -----------------
Total non-interest expense 1,357 1,380
-----------------
Income tax expense -- --
-------------------------------------------------- -----------------
Net (loss) income $ 101 $ (89)
-------------------------------------------------- -----------------
Basic (loss) earnings per common
share $ 0.03 $ (0.03)
-------------------------------------------------- -----------------
Diluted (loss) earnings per common
share $ 0.03 $ (0.03)
-------------------------------------------------- -----------------
For the period:
Return on average equity 2.46% -1.97%
Return on average assets 0.19% -0.18%
At period end:
Book value per share $ 5.54 $ 6.03
Market value $ 3.40 $ 6.18
-------------------------------------------------- -----------------
BALANCE SHEETS
------------------------------------------- --------- ---------
(Amounts in thousands, Except Share Data) March 31, December 31,
(Unaudited) 2008 2008
--------- ---------
Assets Cash and due from banks $ 3,807 $ 2,609
Federal funds sold and interest-
bearing deposits with banks 14,571 42
--------- ---------
Total cash and cash equivalents 18,378 2,651
Securities available for sale 38,210 39,474
Restricted securities 1,570 1,535
Loans held for investment, net of
unearned income 159,652 155,905
Less allowance for loan losses 3,013 2,943
--------- ---------
Net loans held for investment 156,639 152,962
Premises and equipment 5,626 5,688
Interest receivable 867 865
Other assets 576 537
--------------------------------------------- --------- ---------
Total Assets $ 221,866 $ 203,712
--------------------------------------------- --------- ---------
Liabilities Deposits:
Non-interest-bearing demand $ 14,704 $ 12,484
Savings and interest-bearing
demand 23,777 18,770
Time 155,375 139,758
--------- ---------
Total Deposits 193,856 171,012
Accrued expenses and other
liabilities 1,226 1,208
FHLB borrowings and other
indebtedness 10,000 15,176
--------------------------------------------- --------- ---------
Total Liabilities 205,082 187,396
--------------------------------------------- --------- ---------
Stockholders' Preferred stock, $5.00 par value;
Equity 5,000,000 shares 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 7,580 7,580
Additional paid-in capital 14,708 14,705
Retained deficit (5,813) (5,914)
Accumulated other comprehensive
income 309 (55)
--------------------------------------------- --------- ---------
Total Stockholders' Equity 16,784 16,316
--------------------------------------------- --------- ---------
Total Liabilities and
Stockholders' Equity $ 221,866 $ 203,712
--------------------------------------------- --------- ---------
BANK OF VIRGINIA
Selected Historical Information
(Unaudited)
As of and for the Quarter Ended
March 31, Dec. 31, Sept. 30, June 30, March 31,
2009 2008 2008 2008 2008
---------- ---------- ---------- ---------- ----------
Asset Quality Analysis:
Allowance
for loan
losses:
Beginning
balance 2,942,988 1,525,551 1,419,977 1,389,977 1,276,726
Provision 69,750 1,515,500 105,574 30,000 113,251
Charge-
offs -- (98,063) -- -- --
Recoveries -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net charge-
offs -- (98,063) -- -- --
---------- ---------- ---------- ---------- ----------
Ending
Balance 3,012,738 2,942,988 1,525,551 1,419,977 1,389,977
========== ========== ========== ========== ==========
Nonperforming Assets:
Nonaccrual
loans -- 244,273 -- -- --
Foreclosed
real
estate 308,019 308,019 -- -- --
Repossessions -- -- -- -- --
Loans 90
days or
more past
due and
still
accruing 696,000 696,000 -- -- --
---------- ---------- ---------- ---------- ----------
Nonper-
forming
assets 1,004,019 1,248,292 -- -- --
========== ========== ========== ========== ==========
Allowance
for loan
losses as
a percent
of loans 1.89% 1.89% 1.00% 0.98% 0.97%