MIDLOTHIAN, Va., Nov. 16, 2012 (GLOBE NEWSWIRE) -- Bank of Virginia (the "Bank") (Nasdaq:BOVA) (www.bankofva.com) reported a net loss of $544,000, or $(0.21) per share, for the quarter ended September 30, 2012, compared to a net loss of $724,000, or $(0.32) per share, for the quarter ended September 30, 2011. Net income for the nine months ended September 30, 2012 totaled a loss of $54,000, compared to the net loss of $3.8 million for the nine months ended September 30, 2011.
"Since last year, Bank of Virginia has made incredible strides in rebuilding our management and improving the Bank's key credit and performance indicators," said Jack Zoeller, Chairman and CEO. "Our talented new lending team has substantially rebuilt the quality of our loan portfolio, and we expect by early 2013 to achieve core profitability that is sustainable and will serve as a launch point for future organic and strategic growth."
On a year-over-year basis through September 30, 2012, Bank of Virginia reduced its volume of substandard assets from $28.6 million to $16.9 million; its total of delinquent loans from $12.7 million to $7.0 million; and its loan loss reserve from $7.1 million to $4.1 million.
The Bank also improved its capital position with recent common equity offerings totaling $3.3 million to its majority shareholder, Cordia Bancorp Inc., and its minority shareholders in a subscription rights offering completed on November 13, 2012.
Review of Operations
Net interest income for the quarter ended September 30, 2012 totaled $1.1 million, up from $1.0 million for the quarter ended September 30, 2011. Noninterest expense improved to $1.7 million for the quarter ended September 30, 2012, from $1.8 million for the same period in 2011.
For the nine months ended September 30, 2012, net interest income after the provision for loan losses totaled $4.5 million, an increase of $3.7 million when compared to the same period in 2011, primarily attributed to releases of $1.2 million from the provision for loan losses in 2012. Noninterest expense improved from $5.4 million for the nine months ended September 30, 2011 to $5.1 million for the nine months ended September 30, 2012.
The Bank's provision for loan losses declined by $150,000 to a $6,000 benefit for the quarter ended September 30, 2012, compared to a $144,000 provision expense for the quarter ended September 30, 2011. For the nine months ended September 30, 2012, provision expense declined by $3.9 million.
Review of Balance Sheet
Total assets at September 30, 2012 were $170.1 million, compared to $165.5 million at December 31, 2011. Net loans at September 30, 2012 were $106.9 million, an increase of $2.2 million over $104.7 million at December 31, 2011. Investments and cash-equivalent balances totaled $49.2 million at September 30, 2012, an increase of $1.1 million over $48.1 million at December 31, 2011.
Total deposits increased $7.1 million, or 4.8%, to $154.3 million at September 30, 2012 from $147.2 million at December 31, 2011. Savings and interest bearing demand deposits increased $9.9 million, or 33.1%, from $29.7 million at December 31, 2011 to $39.5 million at September 30, 2012. Total time deposits decreased $3.6 million, or 3.6%, to $97.1 million at September 30, 2012 from $100.7 million at December 31, 2011.
Asset Quality
The level of nonperforming assets decreased from $13.4 million or 8.1% of assets at December 31, 2011, to $ 10.8 million or 6.3% of assets at September 30, 2012. Nonaccrual loans decreased from $8.9 million or 8.1% of total loans, to $5.8 million or 5.2% of total loans, over the same nine months. Impaired loans were down markedly by $6.1 million, or 26.5%, from $23.0 million at December 31, 2011 to $16.9 million at September 30, 2012.
About Bank of Virginia
Bank of Virginia, a state chartered bank headquartered in Midlothian, Virginia, currently operates four full-service offices in the counties of Chesterfield and Henrico, Virginia. Bank of Virginia's common stock is traded on the NASDAQ stock market under the quotation symbol "BOVA". Additional investor relations information can be found on the internet at www.bankofva.com. Bank of Virginia is a member of the FDIC and Equal Housing Lender.
DISCLAIMER
The information as of and for the three and nine months ended September 30, 2012, as presented, is unaudited. This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed in the Bank's periodic filings with the Board of Governors of the Federal Reserve System, including the Bank's annual report on Form 10-K. Pursuant to the Private Securities Litigation Reform Act of 1995, the Bank does not undertake to update forward-looking statements contained within this news release.
| Bank of Virginia | ||||
| Selected Financial Information and Other Data | ||||
| ($ in thousands, except per share data) | ||||
| Three months ended | Nine months ended | |||
| September 30, | September 30, | |||
| 2012 | 2011 | 2012 | 2011 | |
| Summary of Operations | ||||
| Total interest income | $ 1,667 | $ 1,887 | $ 5,130 | $ 6,411 |
| Total interest expense | 562 | 758 | 1,766 | 2,508 |
| Net Interest Income | 1,105 | 1,129 | 3,364 | 3,903 |
| Provision for loan losses | (6) | 144 | (1,174) | 2,737 |
| Net interest income after provision for loan losses | 1,111 | 985 | 4,538 | 1,166 |
| Non Interest Income | 69 | 88 | 508 | 419 |
| Non Interest Expense | 1,724 | 1,797 | 5,100 | 5,393 |
| Net Income | $ (544) | $ (724) | $ (54) | $ (3,808) |
| Performance Ratios | ||||
| Earnings per share | $ (0.21) | $ (0.32) | $ (0.02) | $ (1.68) |
| Book value per share | $ 4.94 | $ 5.92 | $ 4.94 | $ 5.92 |
| Net interest margin | 2.75% | 2.58% | 2.87% | 2.85% |
| Return on average assets | -1.28% | -1.62% | -0.04% | -0.43% |
| Return on average equity | -15.88% | -20.90% | -0.56% | -34.26% |
| September 30, | June 30, | March 31, | December 31, | |
| 2012 | 2012 | 2012 | 2011 | |
| Balance Sheet Summary | ||||
| Total loans | $ 111,019 | $ 110,118 | $ 111,661 | $ 110,334 |
| Total earning assets | $ 155,021 | $ 154,582 | $ 145,239 | $ 150,712 |
| Total assets | $ 170,085 | $ 170,201 | $ 165,118 | $ 165,465 |
| Deposits | $ 154,314 | $ 151,701 | $ 146,709 | $ 147,241 |
| FHLB borrowings | $ -- | $ 5,000 | $ 5,000 | $ 5,000 |
| Shareholders' equity | $ 15,276 | $ 12,893 | $ 12,750 | $ 12,667 |
| Asset Quality Ratios | ||||
| Nonaccrual loans | $ 5,816 | $ 6,830 | $ 7,036 | $ 8,878 |
| Other real estate owned | $ 1,633 | $ 1,633 | $ 1,682 | $ 1,262 |
| Allowance for loan losses | $ 4,122 | $ 4,539 | $ 5,367 | $ 5,672 |
| Nonaccrual loans to total loans | 5.24% | 6.20% | 6.30% | 8.04% |
| Allowance for loan losses to total loans | 3.71% | 4.12% | 4.81% | 5.14% |