MIDLOTHIAN, Va., May 7, 2015 (GLOBE NEWSWIRE) -- Cordia Bancorp Inc. ("Cordia") (Nasdaq:BVA), parent company of Bank of Virginia, reported net income of $351,000, or $0.05 per share, for the first quarter of 2015, compared to a net loss of $284,000, $(0.10) per share, for the first quarter of 2014.
Highlights
- 28% year-over-year growth in loans, excluding guaranteed student loans
- 16% year-over-year growth in total assets
- Net interest income up 6%, compared to the first quarter of 2014, and 10%, net of acquisition accounting adjustments
- Nonperforming assets decreased to 1.16% of total assets from 1.70% for the first quarter of 2014
- CordiaGrad, an online lending platform to refinance student loans, launched in the fourth quarter of 2014
- $340,000 net recovery of loan losses in the first quarter 2015
Chief Executive Officer Jack Zoeller stated, "We continue to grow the company to put to work the $15.4 million of equity capital we raised in 2014. Commercial loan growth continues at exceptional levels. We are also very excited about CordiaGrad, our online student loan refinancing platform, which gives us a new lending channel unique among community banks in Virginia."
Balance Sheet Activity
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Asset Growth. Total assets increased to $324.5 million at March 31, 2015, compared to $318.6 million at December 31, 2014 and $280.3 million at March 31, 2014. During the first quarter of 2015, loans held for investment increased 3%, or $6.8 million. Of this amount, organic originations accounted for $10.2 million while purchased guaranteed student loans decreased $3.4 million. In addition, investment securities decreased $12.3 million, while cash and cash equivalents increased $11.3 million.
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Deposit Growth. Total deposits were unchanged at $265.6 million at March 31, 2015, and December 31, 2014. Year-over-year, total deposits increased 13%, from $235.0 million at March 31, 2014.
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Asset Quality. Asset quality continued to improve, with non-performing assets decreasing to $3.8 million, or 1.16% of total assets, at March 31, 2015, from $3.9 million, or 1.21% of total assets, at December 31, 2014, and $4.7 million, or 1.70%, at March 31, 2014.
- Tangible Book Value. Tangible book value per share was $4.22 at March 31, 2015, up from $4.16 at December 31, 2014.
Operating Results
Three months ended March 31, 2015 compared to the three months ended March 31, 2014
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Net income for the quarter ended March 31, 2015 was $351,000 compared to a net loss of $284,000 for the prior year first quarter.
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Net interest income was $2.01 million for the first quarter of 2015, compared to $1.90 million for the first quarter of 2014.
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Net interest income, net of acquisition accounting adjustments, increased $185,000, or 10.3%.
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Net interest margin was 2.69% and 3.39% for the first quarter of 2015 and 2014, respectively. Adjusting for the impact of acquisition accounting, net interest margin was 2.67% compared to 3.22% for the 2014 period.
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The provision for loan losses was a recovery of $340,000 in the first quarter of 2015 compared to a provision of $20,000 in the prior year quarter.
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Noninterest income increased to $213 thousand from $123 thousand in the prior year quarter due primarily to $71 thousand in gain on the sale of securities and loans.
- Noninterest expense decreased $70 thousand to $2.21 million for the first quarter of 2015, compared to $2.28 million for the first quarter of 2014.
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 six full-service banking locations in the greater Richmond market, including Chesterfield and Henrico Counties and Colonial Heights, Virginia. CordiaGrad provides student loan refinancing services through two offices in Midlothian, VA and Washington, DC.
In late 2014 the Bank launched CordiaGrad, a student loan refinancing program aimed at high-achieving student loan borrowers. CordiaGrad seeks to provide significant rate savings to holders of federal, private, and parent student loans.
For more information about Cordia Bancorp, Bank of Virginia and CordiaGrad, visit our websites: www.cordiabancorp.com, www.bankofva.com and www.cordiagrad.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 31, | |
| (Dollars in thousands, except per share data) | 2015 | 2014 | 2014 | 2014 | 2014 |
| Assets | |||||
| Cash and due from banks | $ 9,602 | $ 5,484 | $ 5,789 | $ 5,332 | $ 10,499 |
| Fed funds sold and Interest-bearing deposits | 23,495 | 16,363 | 6,131 | 9,843 | 16,839 |
| Total cash and cash equivalents | 33,097 | 21,847 | 11,920 | 15,175 | 27,338 |
| Securities available for sale, at fair value | 41,411 | 53,483 | 54,581 | 45,835 | 24,464 |
| Securities held to maturity, at cost | 20,132 | 20,716 | 21,263 | 21,839 | 14,500 |
| Restricted securities | 2,405 | 2,092 | 1,525 | 1,525 | 1,529 |
| Loans held for sale | 117 | -- | -- | -- | -- |
| Loans held for investment: | |||||
| Commercial real estate | 109,734 | 103,253 | 92,300 | 90,909 | 85,084 |
| Commercial and industrial | 24,057 | 24,153 | 25,376 | 24,605 | 22,118 |
| Guaranteed student loans | 61,441 | 64,870 | 67,421 | 70,624 | 80,966 |
| Consumer and other | 24,521 | 20,683 | 19,221 | 18,147 | 16,914 |
| Total loans held for investment | 219,753 | 212,959 | 204,318 | 204,285 | 205,082 |
| Less: Allowance for loan losses | (1,102) | (1,089) | (1,226) | (1,407) | (1,504) |
| Net loans held for investment | 218,651 | 211,870 | 203,092 | 202,878 | 203,578 |
| Premises and equipment, net | 4,402 | 4,432 | 4,496 | 4,510 | 4,430 |
| Accrued interest receivable | 1,986 | 2,040 | 1,902 | 1,830 | 2,177 |
| Other real estate owned, net of valuation allowance | 1,647 | 1,641 | 1,543 | 1,543 | 1,543 |
| Other assets | 696 | 479 | 485 | 390 | 697 |
| Total assets | $ 324,544 | $ 318,600 | $ 300,807 | $ 295,525 | $ 280,256 |
| Liabilities and stockholders' equity | |||||
| Non-interest bearing deposits | 27,628 | 30,709 | 24,490 | 24,890 | 21,649 |
| Savings and interest bearing demand deposits | 83,077 | 83,339 | 78,779 | 75,660 | 74,818 |
| Time deposits | 154,920 | 151,555 | 149,679 | 144,643 | 138,561 |
| Total deposits | 265,625 | 265,603 | 252,948 | 245,193 | 235,028 |
| Accrued expenses and other liabilities | 1,061 | 861 | 877 | 3,419 | 12,202 |
| FHLB borrowings | 30,000 | 25,000 | 20,000 | 20,000 | 20,000 |
| Total liabilities | 296,686 | 291,464 | 273,825 | 268,612 | 267,230 |
| Common stock - voting | 51 | 51 | 51 | 51 | 28 |
| Common stock - nonvoting | 14 | 14 | 14 | 14 | -- |
| Additional paid-in-capital | 33,011 | 32,956 | 32,895 | 32,847 | 18,672 |
| Retained deficit | (5,066) | (5,417) | (5,477) | (5,559) | (5,289) |
| Accumulated other comprehensive loss | (152) | (468) | (501) | (440) | (385) |
| Total stockholders' equity | 27,858 | 27,136 | 26,982 | 26,913 | 13,026 |
| Total liabilities and stockholders' equity | $ 324,544 | $ 318,600 | $ 300,807 | $ 295,525 | $ 280,256 |
| 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) | 2015 | 2014 | 2014 | 2014 | 2014 |
| Interest Income | |||||
| Interest and fees on loans | $ 2,183 | $ 2,247 | $ 2,275 | $ 2,252 | $ 2,149 |
| Investment securities | 363 | 405 | 346 | 311 | 207 |
| Interest on federal funds sold and deposits with banks | 7 | 6 | 4 | 9 | 6 |
| Total interest income | 2,553 | 2,658 | 2,625 | 2,572 | 2,362 |
| Interest Expense | |||||
| Interest on deposits | 454 | 451 | 443 | 441 | 426 |
| Interest on FHLB Borrowings | 89 | 76 | 57 | 56 | 41 |
| Total interest expense | 543 | 527 | 500 | 497 | 467 |
| Net interest income | 2,010 | 2,131 | 2,125 | 2,075 | 1,895 |
| Provision for (recovery of) loan losses | (340) | 182 | (106) | 209 | 20 |
| Net interest income after provision for (recovery of) loan losses | 2,350 | 1,949 | 2,231 | 1,866 | 1,875 |
| Non-interest income | |||||
| Service charges on deposit accounts | 30 | 34 | 44 | 19 | 26 |
| Net gain (loss) on sale of available for sale securities | 114 | 116 | (3) | -- | 64 |
| Other fee income | 69 | 50 | 41 | 43 | 33 |
| Total non-interest income | 213 | 200 | 82 | 62 | 123 |
| Non-interest expense | |||||
| Salaries and employee benefits | 1,280 | 1,094 | 1,244 | 1,102 | 1,406 |
| Professional services | 84 | 104 | 92 | 125 | 106 |
| Occupancy | 153 | 139 | 139 | 136 | 151 |
| Data processing and communications | 198 | 184 | 206 | 160 | 142 |
| FDIC assessment and bank fees | 90 | 96 | 99 | 96 | 94 |
| Bank franchise taxes | 49 | 23 | 23 | 27 | 29 |
| Student loan servicing fees and other loan expenses | 146 | 191 | 144 | 210 | 126 |
| Other real estate expenses | 6 | 18 | 6 | 17 | 5 |
| Supplies and equipment | 73 | 78 | 82 | 83 | 75 |
| Insurance | 20 | 42 | 40 | 44 | 41 |
| Director's fees | 26 | 50 | 46 | 75 | 16 |
| Marketing and business development | 18 | 21 | 15 | 9 | 6 |
| Other operating expenses | 69 | 49 | 95 | 114 | 85 |
| Total non-interest expense | 2,212 | 2,089 | 2,231 | 2,198 | 2,282 |
| Net income (loss) | $ 351 | $ 60 | $ 82 | $ (270) | $ (284) |
| Earnings (loss) per share, basic and diluted | $ 0.05 | $ 0.01 | $ 0.01 | $ (0.09) | $ (0.10) |
| Weighted average shares outstanding, basic | 6,559,217 | 6,504,106 | 6,504,106 | 3,033,300 | 2,788,302 |
| Weighted average shares outstanding, diluted | 6,559,217 | 6,504,106 | 6,504,106 | 3,033,300 | 2,788,302 |
| 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) | 2015 | 2014 | 2014 | 2014 | 2014 |
| Results of Operations | |||||
| Interest income | $ 2,553 | $ 2,658 | $ 2,625 | $ 2,572 | $ 2,362 |
| Interest expense | 543 | 527 | 500 | 497 | 467 |
| Net interest income | 2,010 | 2,131 | 2,125 | 2,075 | 1,895 |
| Provision for (recovery of) loan losses | (340) | 182 | (106) | 209 | 20 |
| Net interest income after provision for (recovery of) loan losses | 2,350 | 1,949 | 2,231 | 1,866 | 1,875 |
| Non-interest income | 213 | 200 | 82 | 62 | 123 |
| Non-interest expense | 2,212 | 2,089 | 2,231 | 2,198 | 2,282 |
| Net income (loss) | $ 351 | $ 60 | $ 82 | $ (270) | $ (284) |
| Earnings (loss) per share, basics and diluted | $ 0.05 | $ 0.01 | $ 0.01 | $ (0.09) | $ (0.10) |
| Weighted average shares outstanding, basic | 6,559,217 | 6,504,106 | 6,504,106 | 3,033,300 | 2,788,302 |
| Weighted average shares outstanding, diluted | 6,559,217 | 6,504,106 | 6,504,106 | 3,033,300 | 2,788,302 |
| Performance Ratios | |||||
| Return on average assets | 0.44% | 0.08% | 0.11% | -0.38% | -0.48% |
| Return on average equity | 5.20% | 0.88% | 1.21% | -4.21% | -8.64% |
| Return on average tangible equity | 5.22% | 0.88% | 1.21% | -4.23% | -8.73% |
| Efficiency ratio | 99.51% | 89.62% | 101.09% | 102.85% | 113.08% |
| Yields and Rates | |||||
| Yield on loans | 4.16% | 4.29% | 4.47% | 4.40% | 4.95% |
| Yield on securities | 2.07% | 2.04% | 1.94% | 2.27% | 2.11% |
| Yield on interest earning assets | 3.42% | 3.53% | 3.72% | 3.78% | 4.22% |
| Cost of interest bearing deposits | 0.78% | 0.76% | 0.78% | 0.82% | 0.89% |
| Cost of total deposits | 0.70% | 0.68% | 0.71% | 0.74% | 0.80% |
| Cost of borrowings | 1.25% | 1.25% | 1.13% | 1.12% | 1.64% |
| Cost of interest bearing liabilities | 0.83% | 0.81% | 0.81% | 0.85% | 0.93% |
| Interest rate spread | 2.59% | 2.72% | 2.91% | 2.94% | 3.29% |
| Net interest margin | 2.69% | 2.83% | 3.01% | 3.05% | 3.39% |
| Capital | |||||
| Total equity to total assets | 8.58% | 8.52% | 8.97% | 9.11% | 4.65% |
| Tangible equity to total assets | 8.56% | 8.49% | 8.94% | 9.07% | 4.60% |
| Book value per share | 4.23 | 4.17 | 4.15 | 4.14 | 4.67 |
| Tangible book value per share | 4.22 | 4.16 | 4.13 | 4.12 | 4.63 |
| Common shares outstanding | 6,584,106 | 6,504,106 | 6,504,106 | 6,504,106 | 2,788,302 |
| Average Balances | |||||
| Loans | $ 212,566 | $ 207,833 | $ 201,953 | $ 205,104 | $ 176,161 |
| Securities | 71,198 | 78,590 | 70,848 | 54,904 | 39,747 |
| Earning assets | 302,481 | 298,712 | 279,876 | 272,733 | 226,968 |
| Total assets | 321,455 | 315,167 | 295,834 | 286,525 | 241,660 |
| Interest bearing deposits | 235,388 | 234,953 | 223,927 | 215,856 | 193,952 |
| Total deposits | 264,434 | 262,947 | 248,087 | 238,416 | 215,721 |
| FHLB borrowings | 28,778 | 24,185 | 20,000 | 20,000 | 10,111 |
| Interest bearing liabilities | 264,166 | 259,138 | 243,927 | 235,856 | 204,057 |
| Total equity | 27,353 | 27,198 | 26,918 | 25,727 | 13,332 |
| Tangible equity | 27,254 | 27,089 | 26,800 | 25,601 | 13,196 |
| Asset Quality | |||||
| Net charge-offs/(recoveries) | (353) | 319 | 75 | 306 | 5 |
| Net charge-off rate | -0.67% | 0.61% | 0.15% | 0.60% | 0.01% |
| Non-performing loans | 2,108 | 2,221 | 1,323 | 2,572 | 3,225 |
| Non-performing assets | 3,755 | 3,862 | 2,866 | 4,115 | 4,768 |
| Allowance for loan losses | 1,102 | 1,089 | 1,226 | 1,407 | 1,504 |
| Non-performing loans as a % of total loans held for investment | 0.96% | 1.04% | 0.65% | 1.26% | 1.57% |
| Non-performing assets as a % of total assets | 1.16% | 1.21% | 0.95% | 1.39% | 1.70% |
| Allowance for loan losses as a % of total loans held for investment | 0.50% | 0.51% | 0.60% | 0.69% | 0.73% |
| Allowance for loan losses as a % of non-performing loans | 52.28% | 49.03% | 92.67% | 54.70% | 46.64% |
| Cordia Bancorp | |||||
| GAAP to Non-GAAP Reconciliations (unaudited) | |||||
| The table below shows 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) | 2015 | 2014 | 2014 | 2014 | 2014 |
| Tangible Equity and Tangible Assets (Period End) | |||||
| Total shareholders' equity (GAAP) | $ 27,858 | $ 27,136 | $ 26,982 | $ 26,913 | $ 13,026 |
| Less: intangible assets | 95 | 104 | 112 | 121 | 130 |
| Tangible Equity (non-GAAP) | $ 27,763 | $ 27,032 | $ 26,870 | $ 26,792 | $ 12,896 |
| Total assets (GAAP) | $ 324,544 | $ 318,600 | $ 300,807 | $ 295,525 | $ 280,256 |
| Less: intangible assets | 95 | 104 | 112 | 121 | 130 |
| Tangible assets (non-GAAP) | $ 324,449 | $ 318,496 | $ 300,695 | $ 295,404 | $ 280,126 |
| Total equity to total assets (GAAP) | 8.58% | 8.52% | 8.97% | 9.11% | 4.65% |
| Book value per share (GAAP) | $ 4.23 | $ 4.17 | $ 4.15 | $ 4.14 | $ 4.67 |
| Tangible equity to tangible assets (non-GAAP) | 8.56% | 8.49% | 8.94% | 9.07% | 4.60% |
| Tangible book value per share (non-GAAP) | $ 4.22 | $ 4.16 | $ 4.13 | $ 4.12 | $ 4.63 |
| Tangible Equity and Tangible Assets (Average) | |||||
| Total shareholders' equity (GAAP) | $ 27,353 | $ 27,198 | $ 26,918 | $ 25,727 | $ 13,332 |
| Less: intangible assets | 99 | 109 | 118 | 126 | 136 |
| Tangible Equity (non-GAAP) | $ 27,254 | $ 27,089 | $ 26,800 | $ 25,601 | $ 13,196 |
| Total assets (GAAP) | 321,455 | 315,167 | 295,834 | 286,525 | 241,660 |
| Less: intangible assets | 99 | 109 | 118 | 126 | 136 |
| Tangible assets (non-GAAP) | $ 321,356 | $ 315,058 | $ 295,716 | $ 286,399 | $ 241,524 |
| Total equity to total assets (GAAP) | 8.51% | 8.63% | 9.10% | 8.98% | 5.52% |
| Book value per share (GAAP) | $ 4.15 | $ 4.18 | $ 4.14 | $ 3.95 | $ 4.78 |
| Tangible equity to tangible assets (non-GAAP) | 8.48% | 8.60% | 9.06% | 8.94% | 5.46% |
| Tangible book value per share (non-GAAP) | $ 4.14 | $ 4.16 | $ 4.12 | $ 3.94 | $ 4.73 |