MIDLOTHIAN, Va., May 7, 2014 (GLOBE NEWSWIRE) -- Cordia Bancorp Inc. ("Cordia") (Nasdaq:BVA), parent company of Bank of Virginia, reported a net loss of $284,000 or $(0.10) per share for the first quarter of 2014, compared to net income of $222,000 or $0.08 per share for the first quarter of 2013.
First Quarter 2014 Highlights
- 19% growth in total assets
- 11% growth in deposits
- 10% increase in full time employees
- Acquisition of $26.5 million portfolio of student loans
- Nonperforming assets continued to decrease to 1.7% of total assets
Chief Executive Officer Jack Zoeller stated, "We launched a fresh round of growth in the first quarter in anticipation of the $15.4 million capital raise that closed in early April. While we incurred a modest quartlerly loss primarily due to one-time factors and timing differences related to compensation, additions to staffand loan loss reserves, Cordia remains focused on its strategy to grow both our geographic footprint and earnings base." Cordia recently announced plans to open two new full-service branches in Chesterfield County and Colonial Heights, Virginia.
Financial Highlights
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Asset Growth. Total assets were $280.3 million at March 31, 2014, compared to $235.1 million at December 31, 2013. During the first three months of 2014 the Company originated $11.7 million of new organic loans and also purchased $26.5 million of student loans 98% guaranteed by the U.S. Department of Education.
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Deposit Growth and Mix. Total deposits increased to $235.0 million at March 31, 2014, compared to $210.8 million at December 31, 2013. Total checking, money market and savings accounts increased 16%, to $96.5 million at March 31, 2014, from $83.5 million at December 31, 2013.
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Net Interest Income. Net interest income after provision for loan losses was $1.9 million in the first quarter of 2014, compared to $2.1 million in the first quarter of 2013.
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Asset Quality. Asset quality continued to improve, with total non-performing assets decreasing to $4.8 million, or 1.7% of assets, at March 31, 2014, from $5.5 million, or 2.3% of assets, at December 31, 2013. There were no delinquencies in the Company's organic loan portfolio at March 31, 2014.
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Tangible Book Value. Tangible book value per share decreased to $4.63 at March 31, 2014, from $4.72 at December 31, 2013.
- Deferred Tax Asset. As of March 31, 2014, the Company had net deferred tax assets totaling $6.9 million. Upon a determination that realizing the full deferred tax asset is more likely than not, $6.2 million of valuation allowance may be reversed. Cordia anticipates that such a determination may potentially be made near the end of 2014.
Operating Results
Cordia reported a net loss of $284,000 or $(0.10) per share for the first quarter of 2014, compared to net income of $222,000 or $0.08 per share for the first quarter of 2013.
Net interest income after the provision for loan losses was $1.9 million for the first quarter of 2014, compared to $2.1 million for the first quarter of 2013, or a decrease of $230,000. Net interest margin was 3.34% and 4.31% for the first quarter of 2014 and 2013, respectively. The decrease in net interest margin was primarily the result of a decrease of $617,000 in the amount of accretion income on purchased loans in 2014 compared to 2013. Excluding the decrease in the accretion income, interest income on loans held for investment increased by $187,000 due to an increase in average balances of $46.5 million offset by a 47 basis point decrease in average yield. Cordia's cost of deposits, adjusted to exclude accretion income, decreased 15 basis points while total deposits increased $9.3 million. The net interest margin, adjusted for accretion income, increased from 2.83% to 3.18% or 35 basis points.
Noninterest income increased to $123,000 for the first quarter of 2014, compared to $67,000 for the first quarter of 2013. The increase was driven by a net gain on the sale of available for sale securities of $64,000.
Noninterest expense increased to $2.3 million for the first quarter of 2014, compared to $2.0 million for the first quarter of 2013. This increase was primarily due to a one-time accrual of incentive compensation and the costs of staff additions associated with Cordia's growth.
About Cordia Bancorp
Cordia Bancorp Inc. is a public bank holding company founded in 2009 seeking to invest in undervalued community banks and pursue organic and strategic growth in the Mid-Atlantic banking market. Substantially all of the assets of Cordia consist of its investment in Bank of Virginia. Bank of Virginia provides retail banking services to individuals and commercial customers through four full-service and two ATM-only banking locations in the greater Richmond market, including Chesterfield and Henrico Counties and Colonial Heights, Virginia.
For more information about Cordia Bancorp and Bank of Virginia, visit our websites: www.cordiabancorp.com and 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 Company's periodic filings with the Securities Exchange Commission. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements contained within this news release.
| Cordia Bancorp | |||||
| Consolidated Balance Sheets (unaudited) | |||||
| March, 31 | Dec. 31, | Sept. 30, | June 30, | March 30, | |
| (Dollars in thousands, except per share data) | 2014 | 2013 | 2013 | 2013 | 2013 |
| Assets | |||||
| Cash and due from banks | $ 10,499 | $ 5,290 | $ 6,893 | $ 3,756 | $ 5,340 |
| Fed funds sold and Interest-bearing deposits | 16,839 | 8,694 | 15,889 | 27,766 | 9,201 |
| Total cash and cash equivalents | 27,338 | 13,984 | 22,782 | 31,522 | 14,541 |
| Securities available for sale, at fair value | 24,464 | 24,567 | 29,807 | 22,105 | 17,182 |
| Securities held to maturity | 14,500 | 14,753 | -- | -- | -- |
| Restricted securities | 1,529 | 1,074 | 1,071 | 1,134 | 1,124 |
| Loans held for investment: | |||||
| Commercial real estate | 85,084 | 82,602 | 85,962 | 80,289 | 78,405 |
| Commercial and industrial | 22,118 | 21,208 | 20,388 | 21,273 | 23,384 |
| Guaranteed student loans | 80,966 | 55,427 | 51,293 | 52,957 | 34,696 |
| Consumer and other | 16,914 | 14,770 | 15,146 | 13,960 | 14,712 |
| Total loans held for investment | 205,082 | 174,007 | 172,789 | 168,479 | 151,197 |
| Less: Allowance for loan losses | (1,504) | (1,489) | (1,517) | (1,562) | (1,583) |
| Net loans held for investment | 203,578 | 172,518 | 171,272 | 166,917 | 149,614 |
| Loans held for sale | -- | -- | -- | -- | 59,761 |
| Premises and equipment, net | 4,430 | 4,464 | 4,512 | 4,287 | 4,327 |
| Accrued interest receivable | 2,177 | 1,655 | 1,335 | 1,132 | 1,097 |
| Other real estate owned, net of valuation allowance | 1,543 | 1,545 | 1,545 | 1,768 | 1,768 |
| Other assets | 697 | 588 | 648 | 655 | 953 |
| Total assets | $ 280,256 | $ 235,148 | $ 232,972 | $ 229,520 | $ 250,367 |
| Liabilities and stockholders' equity | |||||
| Non-interest bearing deposits | 21,642 | 22,845 | 21,719 | 21,338 | 20,786 |
| Savings and interest bearing demand deposits | 74,825 | 60,685 | 59,546 | 49,493 | 80,665 |
| Time deposits, $100,000 and greater | 87,559 | 76,231 | 75,023 | 79,795 | 70,080 |
| Other time deposits | 51,002 | 51,053 | 52,620 | 54,732 | 54,202 |
| Total deposits | 235,028 | 210,814 | 208,908 | 205,358 | 225,733 |
| Accrued expenses and other liabilities | 12,202 | 1,047 | 897 | 998 | 1,361 |
| FHLB borrowings | 20,000 | 10,000 | 10,000 | 10,000 | 10,000 |
| Total Liabilities | 267,230 | 221,861 | 219,805 | 216,356 | 237,094 |
| Preferred stock | -- | -- | -- | -- | -- |
| Common stock | 28 | 28 | 28 | 28 | 28 |
| Additional paid-in-capital | 18,672 | 18,648 | 18,606 | 18,579 | 18,689 |
| Retained deficit | (5,289) | (5,005) | (5,011) | (5,219) | (5,479) |
| Accumulated other comprehensive income | (385) | (384) | (456) | (224) | 35 |
| Total stockholders' equity | 13,026 | 13,287 | 13,167 | 13,164 | 13,273 |
| Total liabilities and stockholders' equity | $ 280,256 | $ 235,148 | $ 232,972 | $ 229,520 | $ 250,367 |
| Cordia Bancorp | |||||
| Consolidated Statements of Income (unaudited) | |||||
| Three Months Ended | |||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |
| (Dollars in thousands, except per share data) | 2014 | 2013 | 2013 | 2013 | 2013 |
| Interest Income | |||||
| Interest and fees on loans | $ 2,149 | $ 2,089 | $ 2,182 | $ 2,516 | $ 2,579 |
| Investment securities | 207 | 161 | 123 | 72 | 70 |
| Interest on federal funds sold and deposits with banks | 6 | 10 | 19 | 29 | 15 |
| Total interest income | 2,362 | 2,260 | 2,324 | 2,617 | 2,664 |
| Interest Expense | |||||
| Interest on deposits | 426 | 412 | 415 | 426 | 391 |
| Interest on FHLB Borrowings | 41 | 40 | 42 | 41 | 41 |
| Total interest expense | 467 | 452 | 457 | 467 | 432 |
| Net interest income | 1,895 | 1,808 | 1,867 | 2,150 | 2,232 |
| Provision for (benefit from) loan losses | 20 | (92) | (23) | 7 | 127 |
| Net interest income after provision for loan losses | 1,875 | 1,900 | 1,890 | 2,143 | 2,105 |
| Non-interest income | |||||
| Service charges on deposit accounts | 26 | 40 | 31 | 29 | 32 |
| Net gain on sale of available for sale securities | 64 | -- | -- | -- | -- |
| Other fee income | 33 | 46 | 51 | 36 | 35 |
| Total non-interest income | 123 | 86 | 82 | 65 | 67 |
| Non-interest expense | |||||
| Salaries and employee benefits | 1,406 | 1,066 | 991 | 974 | 1,185 |
| Professional services | 106 | 161 | 67 | 211 | 62 |
| Occupancy | 151 | 138 | 137 | 145 | 145 |
| Data processing and communications | 142 | 139 | 140 | 144 | 125 |
| FDIC assessment and bank fees | 123 | 111 | 116 | 114 | 120 |
| Loan expenses | 126 | 76 | 81 | 102 | 15 |
| Other real estate expenses | 5 | 16 | 5 | 12 | 16 |
| Gain on sale of OREO | -- | -- | (36) | -- | -- |
| Supplies and equipment | 75 | 75 | 66 | 64 | 69 |
| Insurance | 41 | 40 | 42 | 42 | 42 |
| Directors fees | 16 | 32 | 34 | 38 | 34 |
| Marketing and business development | 6 | 32 | 19 | 15 | 22 |
| Other | 85 | 95 | 102 | 86 | 115 |
| Total non-interest expense | 2,282 | 1,981 | 1,764 | 1,947 | 1,950 |
| Consolidated net income (loss) before non-controlling interest | (284) | 5 | 208 | 261 | 222 |
| Net income (loss) | (284) | 5 | 208 | 261 | 222 |
| Earnings per share, basic and diluted | $ (0.10) | $ -- | $ 0.07 | $ 0.09 | $ 0.08 |
| Weighted average shares outstanding, basic and diluted | 2,788,302 | 2,788,302 | 2,775,802 | 2,775,802 | 2,778,677 |
| Cordia Bancorp | |||||
| Consolidated Financial Highlights (unaudited) | |||||
| As of and for the Three Months Ended | |||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |
| (Dollars in thousands, except per share data) | 2014 | 2013 | 2013 | 2013 | 2013 |
| Results of Operations | |||||
| Interest income | $ 2,362 | $ 2,260 | $ 2,324 | $ 2,617 | $ 2,664 |
| Interest expense | 467 | 452 | 457 | 467 | 432 |
| Net interest income | 1,895 | 1,808 | 1,867 | 2,150 | 2,232 |
| Provision (benefit) for loan losses | 20 | (92) | (23) | 7 | 127 |
| Net interest income after provision for loan losses | 1,875 | 1,900 | 1,890 | 2,143 | 2,105 |
| Non-interest income | 123 | 86 | 82 | 65 | 67 |
| Non-interest expense | 2,282 | 1,981 | 1,764 | 1,947 | 1,950 |
| Net income | $ (284) | $ 5 | $ 208 | $ 261 | $ 222 |
| Earnings per share, basics and diluted | $ (0.10) | $ -- | $ 0.07 | $ 0.09 | $ 0.08 |
| Weighted average shares outstanding, basic and diluted | 2,788,302 | 2,788,302 | 2,775,802 | 2,775,802 | 2,778,677 |
| Performance Ratios | |||||
| Return on average assets | -0.47% | 0.01% | 0.35% | 0.41% | 0.42% |
| Return on average equity | -8.52% | 0.15% | 6.39% | 7.88% | 6.34% |
| Return on average tangible equity | -8.61% | 0.15% | 6.46% | 7.97% | 6.42% |
| Efficiency ratio | 113.08% | 104.59% | 90.51% | 87.90% | 84.82% |
| Yields and Rates | |||||
| Yield on loans | 4.88% | 4.82% | 5.11% | 5.55% | 6.66% |
| Yield on securities | 2.08% | 2.14% | 1.79% | 1.70% | 1.56% |
| Yield on interest earning assets | 4.16% | 4.13% | 4.09% | 4.23% | 5.14% |
| Cost of interest bearing deposits | 0.88% | 0.89% | 0.88% | 0.82% | 0.92% |
| Cost of total deposits | 0.79% | 0.80% | 0.79% | 0.75% | 0.83% |
| Cost of borrowings | 1.62% | 1.60% | 1.68% | 1.64% | 1.64% |
| Cost of interest bearing liabilities | 0.92% | 0.93% | 0.92% | 0.86% | 0.96% |
| Interest rate spread | 3.25% | 3.21% | 3.17% | 3.38% | 4.18% |
| Net interest margin | 3.34% | 3.30% | 3.29% | 3.48% | 4.31% |
| Capital | |||||
| Total equity to total assets | 4.65% | 5.65% | 5.65% | 5.74% | 5.30% |
| Tangible equity to total assets | 4.60% | 5.59% | 5.59% | 5.67% | 5.24% |
| Book value per share | 4.67 | 4.77 | 4.74 | 4.74 | 4.78 |
| Tangible book value per share | 4.63 | 4.72 | 4.69 | 4.69 | 4.72 |
| Common shares outstanding | 2,788,302 | 2,788,302 | 2,775,802 | 2,775,802 | 2,778,677 |
| Average Balances | |||||
| Loans | 176,161 | 173,536 | 170,969 | 181,373 | 154,799 |
| Securities | 39,747 | 30,156 | 27,509 | 16,922 | 17,904 |
| Earning assets | 226,968 | 218,707 | 227,110 | 247,283 | 207,299 |
| Total assets | 241,660 | 231,435 | 235,067 | 254,765 | 213,728 |
| Interest bearing deposits | 193,946 | 184,920 | 188,526 | 208,433 | 170,621 |
| Total deposits | 215,721 | 206,981 | 210,395 | 228,571 | 189,147 |
| FHLB borrowings | 10,111 | 10,000 | 10,000 | 10,000 | 10,000 |
| Interest bearing liabilities | 204,057 | 194,920 | 198,526 | 218,433 | 180,621 |
| Total equity | 13,332 | 13,266 | 13,027 | 13,254 | 14,006 |
| Tangible equity | 13,196 | 13,123 | 12,875 | 13,093 | 13,836 |
| Asset Quality | |||||
| Net charge-offs | 5 | (65) | 22 | 28 | 661 |
| Net charge-off rate | 0.01% | -0.15% | 0.05% | 0.06% | 1.71% |
| Non-performing loans | 3,225 | 3,934 | 4,054 | 3,980 | 4,490 |
| Non-performing assets | 4,768 | 5,479 | 5,599 | 5,748 | 6,258 |
| Allowance for loan losses | 1,504 | 1,489 | 1,517 | 1,562 | 1,583 |
| Non-performing loans as a % of total loans held for investment | 1.57% | 2.26% | 2.35% | 2.36% | 2.97% |
| Non-performing assets as a % of total assets | 1.70% | 2.33% | 2.40% | 2.50% | 2.50% |
| Allowance for loan losses as a % of total loans held for investment | 0.73% | 0.86% | 0.88% | 0.93% | 1.05% |
| Allowance for loan losses as a % of non-performing loans | 46.64% | 37.85% | 37.42% | 39.25% | 35.26% |
| Cordia Bancorp | |||||
| GAAP to Non-GAAP Reconciliations (unaudited) | |||||
| The table below show the computations of tangible equity and tangible assets and certain related ratios, all of which are considered to be non-GAAP financial measures. The tangible equity to tangible assets ratio has become a focus of some investors and management believes this ratio may assist in analyzing the Corporation's capital position, absent the effects of intangible assets. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation, or as substitute for analysis of results reported under GAAP. Because not all companies use identical calculations, the non-GAAP measures presented in the following table may not be comparable to those reported by other companies. | |||||
| As of and for the Three Months Ended | |||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |
| (Dollars in thousands, except per share data) | 2014 | 2013 | 2013 | 2013 | 2013 |
| Tangible Equity and Tangible Assets (Period End) | |||||
| Total shareholders' equity (GAAP) | $ 13,026 | $ 13,287 | $ 13,167 | $ 13,164 | $ 13,273 |
| Less: intangible assets | 130 | 139 | 148 | 157 | 166 |
| Tangible Equity (non-GAAP) | $ 12,896 | $ 13,148 | $ 13,019 | $ 13,007 | $ 13,107 |
| Total assets (GAAP) | $ 280,256 | $ 235,148 | $ 232,972 | $ 229,520 | $ 250,367 |
| Less: intangible assets | 130 | 139 | 148 | 157 | 166 |
| Tangible assets (non-GAAP) | $ 280,126 | $ 235,009 | $ 232,824 | $ 229,363 | $ 250,201 |
| Total equity to total assets (GAAP) | 4.65% | 5.65% | 5.65% | 5.74% | 5.30% |
| Book value per share (GAAP) | $ 4.67 | $ 4.77 | $ 4.74 | $ 4.74 | $ 4.78 |
| Tangible equity to tangible assets (non-GAAP) | 4.60% | 5.59% | 5.59% | 5.67% | 5.24% |
| Tangible book value per share (non-GAAP) | $ 4.63 | $ 4.72 | $ 4.69 | $ 4.69 | $ 4.72 |
| Tangible Equity and Tangible Assets (Average) | |||||
| Total shareholders' equity (GAAP) | 13,332 | 13,266 | 13,027 | 13,254 | 14,006 |
| Less: intangible assets | 136 | 144 | 153 | 162 | 171 |
| Tangible Equity (non-GAAP) | $ 13,196 | $ 13,123 | $ 12,875 | $ 13,093 | $ 13,836 |
| Total assets (GAAP) | 241,660 | 231,435 | 235,067 | 254,765 | 213,728 |
| Less: intangible assets | 136 | 144 | 153 | 162 | 171 |
| Tangible assets (non-GAAP) | $ 241,524 | $ 231,292 | $ 234,915 | $ 254,604 | $ 213,558 |
| Total equity to total assets (GAAP) | 5.52% | 5.73% | 5.54% | 5.20% | 6.55% |
| Book value per share (GAAP) | $ 4.78 | $ 4.76 | $ 4.69 | $ 4.77 | $ 5.04 |
| Tangible equity to tangible assets (non-GAAP) | 5.46% | 5.67% | 5.48% | 5.14% | 6.48% |
| Tangible book value per share (non-GAAP) | $ 4.73 | $ 4.71 | $ 4.64 | $ 4.72 | $ 4.98 |