MIDLOTHIAN, Va., Aug. 6, 2007 (PRIME NEWSWIRE) -- Frank Bell, President and Chief Executive Officer for Bank of Virginia (Nasdaq:BOVA), today reported second quarter 2007 earnings of $119,000 or $0.04 basic and diluted earnings per share, which represents a 13.3% increase from $105,000 or basic and diluted earnings per share of $0.03 for the first quarter of 2007. This compares to a net loss of $45,000 or ($0.01) basic and diluted loss per share for the second quarter of 2006. The second quarter 2007 results represent a $164,000 increase over the second quarter 2006 net loss of $45,000.
Year-to-date earnings were $224,000 or $0.07 per basic and diluted earnings per share, reflecting a $296,000 increase over the same period of 2006, compared to the net loss of $72,000 or ($0.02) per basic and diluted earnings per share for the six months ended June 30, 2006. Return on average assets was 0.3% and return on average equity was 2.6% through the second quarter of 2007.
The Company achieved its performance by finishing the quarter with assets of $156.7 million. As part of its continued success, the balance sheet showed excellent growth driven by a solid increase in the loan portfolio. Net loans increased from $107.7 million to $116.6 million representing an 8.3% increase for the quarter. Deposit balances grew steadily in support of loan demand and were $133.5 million as of June 30, 2007.
As part of its continued effort to meet the needs of its customer base, the Company recently relocated its Robious Road office to a more favorable, full-service location on Branchway Road in Richmond, Virginia. The Branchway office is located near a retail shopping center and has several drive-thru lanes as well as a full-service ATM. By relocating this office, the Bank believes this will provide better visibility and increase its traffic flow and grow deposits and loans for this location.
In western Henrico County, Virginia, the Bank is currently building a full-service 5000 square foot branch office on Patterson Avenue, a heavily traveled residential and business location. The Bank's new location is expected to be completed in late 2007, ready for official opening in January 2008. This new location 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 and, as stated, is constructing its fifth full service branch location in western Henrico County. 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 and Six Months and
Period Ended Period Ended
---------------------- ----------------------
June 30, June 30,
2007 2006 2007 2006
---------- ---------- ---------- ----------
Interest Income:
Interest and fees
on loans $2,342,915 $1,464,473 $4,449,975 $2,595,029
Investment securities 331,499 253,657 638,303 501,271
Interest on federal
funds sold and
deposits with banks 91,918 19,372 185,509 52,967
---------- ---------- ---------- ----------
Total interest
income 2,766,332 1,737,502 5,273,787 3,149,267
---------- ---------- ---------- ----------
Interest Expense:
Interest on deposits 1,447,216 657,213 2,745,844 1,203,707
Interest on fed funds
purchased and FHLB
borrowings 55,841 134,306 110,529 165,274
---------- ---------- ---------- ----------
Total interest
expense 1,503,057 791,519 2,856,373 1,368,981
---------- ---------- ---------- ----------
Net interest income 1,263,275 945,983 2,417,414 1,780,286
Provision for loan
losses 104,928 135,900 191,765 216,900
---------- ---------- ---------- ----------
Net interest income
after provision for
loan losses 1,158,347 810,083 2,225,649 1,563,386
---------- ---------- ---------- ----------
Non-interest Income:
Service charges on
deposit accounts 32,707 20,323 54,486 38,835
Net gain on available
for sale securities -- 0 0 3,356
Other fee income 19,819 15,251 37,546 29,529
---------- ---------- ---------- ----------
Total non-interest
income 52,526 35,574 92,032 71,720
---------- ---------- ---------- ----------
Non-interest Expense:
Salaries and employee
benefits 675,893 542,763 1,260,669 1,046,360
Occupancy expense 88,946 63,578 164,761 126,179
Equipment expense 52,845 44,634 103,711 84,376
Data processing 83,614 58,718 165,543 119,993
Marketing expense 25,322 30,612 72,137 53,081
Legal and professional
fees 29,064 23,470 71,365 42,881
Other operating
expenses 136,287 127,357 255,638 234,337
---------- ---------- ---------- ----------
Total non-interest
expenses 1,091,971 891,132 2,093,824 1,707,207
---------- ---------- ---------- ----------
Net income (loss) $ 118,902 $ (45,475) $ 223,857 $ (72,101)
========== ========== ========== ==========
Income (loss) per share,
basic and diluted $ 0.04 $ (0.01) $ 0.07 $ (0.02)
========== ========== ========== ==========
Weighted Average Shares
Outstanding:
Basic 3,031,866 3,031,866 3,031,866 3,031,866
========== ========== ========== ==========
Diluted 3,032,851 3,034,721 3,032,494 3,034,721
========== ========== ========== ==========
At period end:
Book value per share 5.66 5.46
Market value per share 8.40 8.14
BANK OF VIRGINIA
Balance Sheets June 30, December 31,
2007 2006
Unaudited Unaudited
------------ ------------
Assets
Cash and due from banks $ 2,877,654 $ 3,681,489
Federal funds sold and interest-bearing
balances with banks 2,834,663 4,859,700
------------ ------------
5,712,317 8,541,189
Securities available for sale, at
fair market value 29,226,721 23,924,065
Loans, net of allowance for loan losses
of $1,122,957 in 2007 and $931,192 in
2006 116,628,576 97,083,314
Premises and equipment, net 4,022,597 3,851,209
Accrued interest receivable 812,393 698,736
Other assets 259,436 196,836
------------ ------------
Total assets $156,662,040 $134,295,349
============ ============
Liabilities
Deposits:
Noninterest-bearing $ 13,249,723 $ 9,484,012
Savings and interest-bearing demand 13,006,797 15,242,879
Time, $100,000 and over 39,963,639 33,293,747
Other time 67,319,447 53,452,844
------------ ------------
Total deposits 133,539,606 111,473,482
Accrued expenses and other liabilities 955,044 759,748
FHLB borrowings 5,000,000 5,000,000
------------ ------------
Total liabilities 139,494,650 117,233,230
------------ ------------
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 2007 and 2006,
respectively 7,579,665 7,579,665
Additional paid-in capital 14,661,958 14,630,698
Retained (deficit) (4,881,985) (5,105,842)
Accumulated other comprehensive income
(loss) (192,248) (42,402)
------------ ------------
Total stockholders' equity 17,167,390 17,062,119
------------ ------------
Total liabilities and stockholders'
equity $156,662,040 $134,295,349
============ ============
BANK OF VIRGINIA
Selected Historical Information
(Unaudited)
As of and for the Quarter Ended
June 30, March 31, Dec. 31, Sep. 30, June 30,
2007 2007 2006 2006 2006
--------- --------- ------- ------- -------
Asset Quality
Analysis:
Allowance for loan
losses:
Beginning balance 1,018,029 931,192 829,750 763,597 627,697
Provision 104,928 86,837 101,442 66,153 135,900
Charge-offs -- -- -- -- --
Recoveries -- -- -- -- --
--------- --------- ------- ------- -------
Net charge-offs -- -- -- -- --
--------- --------- ------- ------- -------
Ending Balance 1,122,957 1,018,029 931,192 829,750 763,597
========= ========= ======= ======= =======
Nonperforming Assets:
Nonaccrual loans -- -- -- -- --
Foreclosed real estate -- -- -- -- --
Repossessions -- -- -- -- --
Loans 90 days or more
past due and still
accruing -- -- -- -- --
--------- --------- ------- ------- -------
Nonperforming
assets -- -- -- -- --
========= ========= ======= ======= =======
Allowance for loan
& lease losses as a
percent of loans 0.95% 0.94% 0.95% 0.94% 0.93%