MIDLOTHIAN, Va., May 8, 2012 (GLOBE NEWSWIRE) -- Bank of Virginia (the "Bank") (Nasdaq:BOVA) (www.bankofva.com), reported net income of $345,000, or $0.03 per share, for the quarter ended March 31, 2012, compared to a net loss of $1.8 million, or $0.16 per share, for the quarter ended March 31, 2011. The quarterly earnings were boosted by recoveries on loans previously charged down, a reduction in loss reserves maintained against the Bank's loan portfolio, and gains on sale of securities.
"These results confirm the success of the Bank's credit risk management strategy and the renewed pulse of the Central Virginia regional economy," said Jack Zoeller, Chairman and CEO. "We are making a concerted effort to partner with our customers who have survived and, in many cases, thrived in a down economy. Our $40 million loan campaign has been well received by borrowers who appreciate our responsiveness and the insights afforded by our rebuilt lending staff. The Bank's proactive but disciplined approach is bearing fruit for customers and shareholders alike."
"We are especially pleased with the improvement in asset quality and reduction in our cost of funds, as they reflect the hard work of our staff, management and board of directors," said Jack Zoeller, Chairman and CEO. "We are charting an aggressive path toward sustained profitability that will lay a foundation for the longer-term strategic growth of the Bank."
Review of the balance sheet
The Bank's total assets were $165.1 million at March 31, 2012, compared to $165.5 million at December 31, 2011. Net loans increased $1.6 million, or 1.6%, from $104.7 million at December 31, 2011 to $106.3 million at March 31, 2012. Securities available for sale declined $8.0 million to $17.6 million at March 31, 2012 from $25.6 million at December 31, 2011, mainly due to $5.7 million in securities sold in the first quarter. Total cash and cash equivalents increased $5.6 million to $32.3 million at March 31, 2012 from $26.7 million at December 31, 2011, mainly due to the proceeds from the sale of securities.
On the liability side of the balance sheet, total deposits declined slightly to $146.7 million at March 31, 2012 from $147.2 million at December 31, 2011. Noninterest bearing deposits increased $2.1 million, or 12.4%, from $16.8 million at December 31, 2011 to $18.9 million at March 31, 2012. Total time deposits declined $4.3 million, or 4.2%, to $99.5 million at March 31, 2012 from $100.7 million at December 31, 2011.
Asset Quality
During the first three months of 2012, the level of nonperforming assets decreased from $10.1 million or 6.1% of assets at December 31, 2011, to $8.7 million or 5.3% of assets at March 31, 2012. Nonaccrual loans total $7.0 million, or 6.3% of total loans at March 31, 2012, compared to $8.9 million, or 8.0% of total loans at December 31, 2011. The Bank reported loan recoveries, net of charge offs, of $244,000 for the three-months ended March 31, 2012 versus charge offs, net of recoveries, of $644,000 for the same period in 2011.
About Bank of Virginia
Bank of Virginia, a state chartered bank headquartered in Midlothian, Virginia, currently operates four full-service offices in the counties of Chesterfield and Henrico, Virginia. Bank of Virginia's common stock is traded on the NASDAQ stock market under the quotation symbol "BOVA". Additional investor relations information can be found on the internet at www.bankofva.com. Bank of Virginia is a member of the FDIC and Equal Housing Lender.
DISCLAIMER
The information as of and for the quarter ended March 31, 2012, as presented is unaudited. This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed in the Bank's periodic filings with the Board of Governors of the Federal Reserve System, including the Bank's annual report on Form 10-K. Pursuant to the Private Securities Litigation Reform Act of 1995, the Bank does not undertake to update forward-looking statements contained within this news release.
| Bank of Virginia | |||
| Selected Financial Information and Other Data | |||
| ($ in thousands, except per share data) | |||
| For the three months ended | |||
| March 31, 2012 | December 31, 2011 | March 31, 2011 | |
| Summary of Operations | |||
| Total Interest Income | 1,802 | 1,851 | 2,372 |
| Total Interest Expense | 607 | 650 | 911 |
| Net Interest Income | 1,195 | 1,201 | 1,461 |
| Provision for loan losses | (549) | 49 | 1,483 |
| Net Int. Inc. After Prov. for Loan Losses | 1,744 | 1,152 | (22) |
| Non Interest Income | 367 | 73 | 143 |
| Non Interest Expense | 1,766 | 1,869 | 1,888 |
| Net Income | 345 | (644) | (1,767) |
| Earnings (loss) per share | $ 0.03 | $ (0.06) | $ (0.16) |
| Book value per share | $ 1.13 | $ 1.12 | $ 1.34 |
| Net interest margin | 3.13% | 3.01% | 3.12% |
| Return on average assets | 0.85% | -1.55% | -3.39% |
| Return on average equity | 11.01% | -19.75% | -40.50% |
| Balance Sheet summary | |||
| Total loans | 111,661 | 110,334 | 137,698 |
| Total earning assets | 152,274 | 159,590 | 198,841 |
| Total assets | 165,118 | 165,465 | 204,707 |
| Deposits | 146,709 | 147,241 | 178,511 |
| FHLB borrowings | 5,000 | 5,000 | 10,000 |
| Shareholders' equity | 12,750 | 12,667 | 15,214 |
| Asset Qualit Ratios | |||
| Nonaccrual loans | 7,036 | 8,878 | 10,186 |
| Other real estate owned | 1,682 | 1,262 | 2,173 |
| Allowance for loan losses | 5,367 | 5,672 | 7,671 |
| Nonaccrual loans to total loans | 6.30% | 8.04% | 7.40% |
| Allowance for loan losses to total loans | 4.81% | 5.14% | 5.57% |