Cordia Bancorp Inc. Reports Third Quarter Profit

| Source: Cordia Bancorp Cordia Bancorp

MIDLOTHIAN, Va., Nov. 12, 2015 (GLOBE NEWSWIRE) -- Cordia Bancorp Inc. ("Cordia") (NASDAQ:BVA), parent company of Bank of Virginia, reported net income of $130,000 or $0.02 per share for the third quarter of 2015, compared to net income of $82,000, or $0.01 per share for the third quarter of 2014. For the first nine months of 2015, net income was $717,000 or $0.11 per share compared to a net loss of $472,000, or $(0.11) per share, for the same period of 2014.

Highlights

  • Hiring of Ed Barham, former CEO of StellarOne, as President & CEO of Bank of Virginia in August 2015
  • 26% year-over-year growth in commercial and consumer loans
  • 16% year-over-year growth in total assets
  • 14% year-over-year growth in total deposits
  • Net interest income increased $336,000, or 5.7%, for the nine months ended September 30, 2015 versus 2014, net of acquisition accounting adjustments.

Chief Executive Officer Jack Zoeller stated, "We are fortunate to have such a talented and highly successful executive as Ed Barham join our team. We are also excited about the Company's continued growth in assets and improvement in earnings. We have achieved exceptional growth in our loan portfolio, excellent asset quality and a meaningful reduction in non-interest expense in 2015."

Balance Sheet Activity

  • Asset Growth. Total assets increased to $348.0 million at September 30, 2015, compared to $318.6 million at December 31, 2014. Year-over-year, total assets increased 16%, from $300.8 million at September 30, 2014. During the nine months ended September 30, 2015, loans held for investment increased 7%, or $15.8 million. Of this amount, organic originations accounted for $24.6 million while purchased guaranteed student loans decreased $8.8 million.
  • Deposit Growth. Total deposits at September 30, 2015, were $289.3 million, an increase of $23.7 million from $265.6 million at December 31, 2014. Year-over-year, total deposits increased 14%, from $252.9 million at September 30, 2014.
  • Asset Quality. Non-performing assets were $3.7 million, or 1.07% of total assets, at September 30, 2015, compared to $3.9 million, or 1.21% of total assets, at December 31, 2014, and $2.9 million, or 0.95%, at September 30, 2014.
  • Tangible Book Value. Tangible book value per share was $4.27 at September 30, 2015 compared to $4.16 at December 31, 2014.

Operating Results

Three months ended September 30, 2015 compared to the three months ended September 30, 2014

  • Net income for the quarter ended September 30, 2015 was $130,000 compared to net income of $82,000 for the prior year third quarter.
  • Net interest income was $2.15 million for the third quarter of 2015, compared to $2.13 million for the third quarter of 2014.
  • Net interest income, net of acquisition accounting adjustments, increased $122,000, or 6.1%.
  • Net interest margin was 2.61% and 3.01% for the third quarter of 2015 and 2014, respectively. Adjusting for the impact of acquisition accounting, net interest margin was 2.58% for the 2015 quarter compared to 2.95% for the 2014 quarter.
  • The provision for loan losses was a recovery of $53,000 in the third quarter of 2015 compared to a recovery of $106,000 in the prior year quarter.
  • Noninterest income increased to $115,000 from $82,000 in the prior year quarter.
  • Noninterest expense decreased $45,000 to $2.19 million for the third quarter of 2015, compared to $2.23 million for the third quarter of 2014.

Nine months ended September 30, 2015 compared to the nine months ended September 30, 2014

  • Net income for the first nine months of 2015 was $717,000 compared to a net loss of $472,000 for the first nine months of 2014.
  • Net interest income was $6.31 million for the 2015 period, compared to $6.10 million for the 2014 period.
  • Net interest income, net of acquisition accounting adjustments, increased $336,000, or 5.7%.
  • Net interest margin was 2.69% and 3.13% for the first nine months of 2015 and 2014, respectively. Adjusting for the impact of acquisition accounting, net interest margin was 2.65% for the 2015 period compared to 3.02% for the 2014 period.
  • The provision for loan losses was a recovery of $330,000 for the first nine months of 2015 compared to a provision of $123,000 for the first nine months of 2014.
  • Noninterest income increased to $425,000 from $267,000 in the prior year period due primarily to an increase in gains on the sale of securities and loans of $75,000 and gains on the sales of loans held for sale of $36,000 in the 2015 period.
  • Noninterest expense decreased $363,000 to $6.35 million for the first nine months of 2015, compared to $6.71 million for the first nine months of 2014 primarily due to a favorable reversal in the 2015 period of a fair value discount of $225,000 related to the purchase of a bank property and the termination of the related lease.

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.

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)
           
  Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
(Dollars in thousands, except per share data) 2015 2015 2015 2014 2014
Assets          
Cash and due from banks  $ 9,437  $ 11,771  $ 9,602  $ 5,484  $ 5,789
Fed funds sold and Interest-bearing deposits  15,970  7,593  23,495  16,363  6,131
Total cash and cash equivalents  25,407  19,364  33,097  21,847  11,920
Securities available for sale, at fair value  48,721  58,445  41,411  53,483  54,581
Securities held to maturity, at cost  26,281  27,087  20,132  20,716  21,263
Restricted securities  2,330  2,331  2,405  2,092  1,525
Loans held for sale  109  96  117  --  --
Loans held for investment:          
Commercial real estate  106,335  111,180  109,734  103,253  92,300
Commercial and industrial  26,751  27,919  24,057  24,153  25,376
Guaranteed student loans  56,072  57,900  61,441  64,870  67,421
Consumer and other  39,607  28,865  24,521  20,683  19,221
Total loans held for investment  228,765  225,864  219,753  212,959  204,318
Less: Allowance for loan losses  (903)  (990)  (1,102)  (1,089)  (1,226)
Net loans held for investment  227,862  224,874  218,651  211,870  203,092
           
Premises and equipment, net  6,034  6,083  4,402  4,432  4,496
Accrued interest receivable  1,924  2,033  1,986  2,040  1,902
Other real estate owned, net of valuation allowance  1,761  1,769  1,647  1,641  1,543
Other assets  7,555  704  696  479  485
Total assets  $ 347,984  $ 342,786  $ 324,544  $ 318,600  $ 300,807
           
Liabilities and stockholders' equity          
Non-interest bearing deposits  28,362  31,239  27,628  30,709  24,490
Savings and interest bearing demand deposits  104,007  100,596  83,077  83,339  78,779
Time deposits  156,939  152,800  154,920  151,555  149,679
Total deposits  289,308  284,635  265,625  265,603  252,948
           
Accrued expenses and other liabilities  553  464  1,061  861  877
FHLB borrowings  30,000  30,000  30,000  25,000  20,000
Total liabilities  319,861  315,099  296,686  291,464  273,825
           
Common stock - voting  50  51  51  51  51
Common stock - nonvoting  14  14  14  14  14
Additional paid-in-capital  33,044  33,061  33,011  32,956  32,895
Retained deficit  (4,700)  (4,830)  (5,066)  (5,417)  (5,477)
Accumulated other comprehensive loss  (285)  (609)  (152)  (468)  (501)
Total stockholders' equity  28,123  27,687  27,858  27,136  26,982
Total liabilities and stockholders' equity  $ 347,984  $ 342,786  $ 324,544  $ 318,600  $ 300,807
           
 
Cordia Bancorp
Consolidated Statements of Income (unaudited)
               
  Three Months Ended Nine Months Ended
  Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30,
(Dollars in thousands, except per share data) 2015 2015 2015 2014 2014 2015 2014
Interest Income              
Interest and fees on loans  $ 2,294  $ 2,327  $ 2,183  $ 2,247  $ 2,275  $ 6,804  $ 6,676
Investment securities  446  383  363  405  346  1,192  864
Interest on federal funds sold and deposits with banks  9  5  7  6  4  21  19
Total interest income  2,749  2,715  2,553  2,658  2,625  8,017  7,559
               
Interest Expense              
Interest on deposits  506  470  454  451  443  1,430  1,310
Interest on FHLB Borrowings  95  93  89  76  57  277  154
Total interest expense  601  563  543  527  500  1,707  1,464
               
Net interest income  2,148  2,152  2,010  2,131  2,125  6,310  6,095
Provision for (recovery of) loan losses  (53)  63  (340)  182  (106)  (330)  123
Net interest income after provision for (recovery of) loan losses  2,201  2,089  2,350  1,949  2,231  6,640  5,972
               
Non-interest income              
Service charges on deposit accounts  35  30  30  34  44  95  89
Net gain (loss) on sale of available for sale securities  22  --  114  116  (3)  136  61
Net gain (loss) on sale of loans held for sale  6  9  21  (4)  --  36  --
Other fee income  52  58  48  54  41  158  117
Total non-interest income  115  97  213  200  82  425  267
               
Non-interest expense              
Salaries and employee benefits  1,085  1,082  1,280  1,094  1,244  3,447  3,752
Professional services  108  100  84  104  92  292  323
Occupancy  149  159  153  139  139  461  426
Reversal of occupancy fair value discount  --  (225)  --  --  --  (225)  --
Data processing and communications  233  206  198  184  206  637  508
FDIC assessment and bank fees  88  92  90  96  99  270  289
Bank franchise taxes  49  49  49  23  23  147  79
Student loan servicing fees and other loan expenses  174  208  146  191  144  528  480
Other real estate expenses  26  45  6  18  6  77  28
Supplies and equipment  71  70  73  78  82  214  240
Insurance  20  19  20  42  40  59  125
Director's fees  28  21  26  50  46  75  137
Marketing and business development  64  31  18  21  15  113  30
Other operating expenses  91  93  69  49  95  253  294
Total non-interest expense  2,186  1,950  2,212  2,089  2,231  6,348  6,711
               
Net income (loss)  $ 130  $ 236  $ 351  $ 60  $ 82  717  (472)
               
Earnings (loss) per share, basic and diluted  $ 0.02  $ 0.04  $ 0.05  $ 0.01  $ 0.01  $ 0.11  $ (0.11)
Weighted average shares outstanding, basic  6,572,278  6,583,848  6,559,217  6,504,106  6,504,106  6,571,829  4,122,180
Weighted average shares outstanding, diluted  6,572,278  6,583,848  6,559,217  6,504,106  6,504,106  6,571,829  4,122,180
               
 
Cordia Bancorp
Consolidated Financial Highlights (unaudited)
  As of and for the Three Months Ended Nine Months Ended
  Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30,
(Dollars in thousands, except per share data) 2015 2015 2015 2014 2014 2015 2014
Results of Operations              
Interest income  $ 2,749  $ 2,715  $ 2,553  $ 2,658  $ 2,625  $ 8,017  $ 7,559
Interest expense  601  563  543  527  500  1,707  1,464
Net interest income  2,148  2,152  2,010  2,131  2,125  6,310  6,095
Provision for (recovery of) loan losses  (53)  63  (340)  182  (106)  (330)  123
Net interest income after provision for (recovery of) loan losses  2,201  2,089  2,350  1,949  2,231  6,640  5,972
Non-interest income  115  97  213  200  82  425  267
Non-interest expense  2,186  1,950  2,212  2,089  2,231  6,348  6,711
Net income (loss)  $ 130  $ 236  $ 351  $ 60  $ 82  $ 717  $ (472)
               
Earnings (loss) per share, basics and diluted  $ 0.02  $ 0.04  $ 0.05  $ 0.01  $ 0.01  $ 0.11  $ (0.11)
Weighted average shares outstanding, basic  6,572,278  6,583,848  6,559,217  6,504,106  6,504,106  6,571,829  4,122,180
Weighted average shares outstanding, diluted  6,572,278  6,583,848  6,559,217  6,504,106  6,504,106  6,571,829  4,122,180
               
Performance Ratios              
Return on average assets 0.15% 0.29% 0.44% 0.08% 0.11% 0.29% -0.23%
Return on average equity 1.85% 3.40% 5.20% 0.88% 1.21% 3.46% -2.86%
Return on average tangible equity 1.85% 3.41% 5.22% 0.88% 1.21% 3.47% -2.88%
Efficiency ratio 96.60% 86.71% 99.51% 89.62% 101.09% 94.25% 105.49%
               
Yields and Rates              
Yield on loans 4.09% 4.18% 4.16% 4.29% 4.47% 4.15% 4.58%
Yield on securities 2.06% 2.12% 2.07% 2.04% 1.94% 2.08% 2.09%
Yield on interest earning assets 3.34% 3.51% 3.42% 3.53% 3.72% 3.42% 3.88%
Cost of interest bearing deposits 0.77% 0.79% 0.78% 0.76% 0.78% 0.78% 0.83%
Cost of total deposits 0.70% 0.71% 0.70% 0.68% 0.71% 0.70% 0.75%
Cost of borrowings 1.26% 1.19% 1.25% 1.25% 1.13% 1.23% 1.23%
Cost of interest bearing liabilities 0.82% 0.84% 0.83% 0.81% 0.81% 0.83% 0.86%
Interest rate spread 2.51% 2.67% 2.59% 2.72% 2.91% 2.59% 3.02%
Net interest margin 2.61% 2.78% 2.69% 2.83% 3.01% 2.69% 3.13%
               
Capital              
Total equity to total assets 8.08% 8.08% 8.58% 8.52% 8.97% 8.08% 8.97%
Tangible equity to total assets 8.06% 8.05% 8.56% 8.49% 8.94% 8.06% 8.94%
Book value per share  4.29  4.21  4.23  4.17  4.15  4.29  4.15
Tangible book value per share  4.27  4.19  4.22  4.16  4.13  4.27  4.13
Common shares outstanding  6,562,906  6,582,806  6,584,106  6,504,106  6,504,106  6,562,906  6,504,106
               
Average Balances              
Loans  $ 222,371  $ 223,286  $ 212,566  $ 207,833  $ 201,953  $ 219,443  194,990
Securities  86,089  72,391  71,198  78,590  70,848  76,614  55,280
Earning assets  326,904  310,680  302,481  298,712  279,876  313,444  260,542
Total assets  346,917  327,439  321,455  315,167  295,834  332,030  274,871
Interest bearing deposits  260,276  238,715  235,388  234,953  223,927  244,881  211,352
Total deposits  288,455  267,356  264,434  262,947  248,087  273,500  234,183
FHLB borrowings  30,000  31,346  28,778  24,185  20,000  30,046  16,740
Interest bearing liabilities  290,276  270,061  264,166  259,138  243,927  274,927  228,092
Total equity  27,938  27,835  27,353  27,198  26,918  27,710  22,042
Tangible equity  27,857  27,745  27,254  27,089  26,800  27,620  21,916
               
Asset Quality              
Net charge-offs/(recoveries)  34  175  (353)  319  75  (144)  386
Net charge-off rate 0.06% 0.31% -0.67% 0.61% 0.15% -0.09% 0.20%
Non-performing loans  1,975  1,918  2,108  2,221  1,323  1,975  1,323
Non-performing assets  3,736  3,687  3,755  3,862  2,866  3,736  2,866
Allowance for loan losses  903  990  1,102  1,089  1,226  903  1,226
Non-performing loans as a % of total loans held for investment 0.86% 0.85% 0.96% 1.04% 0.65% 0.86% 0.65%
Non-performing assets as a % of total assets 1.07% 1.08% 1.16% 1.21% 0.95% 1.07% 0.95%
Allowance for loan losses as a % of total loans held for investment 0.39% 0.44% 0.50% 0.51% 0.60% 0.39% 0.60%
Allowance for loan losses as a % of non-performing loans 45.72% 51.62% 52.28% 49.03% 92.67% 45.72% 92.67%
               
 
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 Nine Months Ended
  Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30,
(Dollars in thousands, except per share data) 2015 2015 2015 2014 2014 2015 2014
Tangible Equity and Tangible Assets (Period End)              
Total shareholders' equity (GAAP)  $ 28,123  $ 27,687  $ 27,858  $ 27,136  $ 26,982  $ 28,123  $ 26,982
Less: intangible assets  77  86  95  104  112  77  112
Tangible Equity (non-GAAP)  $ 28,046  $ 27,601  $ 27,763  $ 27,032  $ 26,870  $ 28,046  $ 26,870
               
Total assets (GAAP)  $ 347,984  $ 342,786  $ 324,544  $ 318,600  $ 300,807  $ 347,984  $ 300,807
Less: intangible assets  77  86  95  104  112  77  112
Tangible assets (non-GAAP)  $ 347,907  $ 342,700  $ 324,449  $ 318,496  $ 300,695  $ 347,907  $ 300,695
               --
Total equity to total assets (GAAP) 8.08% 8.08% 8.58% 8.52% 8.97% 8.08% 8.97%
Book value per share (GAAP)  $ 4.29  $ 4.21  $ 4.23  $ 4.17  $ 4.15  $ 4.29  $ 4.15
Tangible equity to tangible assets (non-GAAP) 8.06% 8.05% 8.56% 8.49% 8.94% 8.06% 8.94%
Tangible book value per share (non-GAAP)  $ 4.27  $ 4.19  $ 4.22  $ 4.16  $ 4.13  $ 4.27  $ 4.13
               
               
Tangible Equity and Tangible Assets (Average)              
Total shareholders' equity (GAAP)  $ 27,938  $ 27,835  $ 27,353  $ 27,198  $ 26,918  $ 27,710  $ 22,042
Less: intangible assets  81  90  99  109  118  90  126
Tangible Equity (non-GAAP)  $ 27,857  $ 27,745  $ 27,254  $ 27,089  $ 26,800  $ 27,620  $ 21,916
               
Total assets (GAAP)  346,917  327,439  321,455  315,167  295,834  332,030  274,871
Less: intangible assets  81  90  99  109  118  90  126
Tangible assets (non-GAAP)  $ 346,836  $ 327,349  $ 321,356  $ 315,058  $ 295,716  $ 331,940  $ 274,745
               
Total equity to total assets (GAAP) 8.05% 8.50% 8.51% 8.63% 9.10% 8.35% 8.02%
Book value per share (GAAP)  $ 4.24  $ 4.23  $ 4.15  $ 4.18  $ 4.14  $ 4.22  $ 3.39
Tangible equity to tangible assets (non-GAAP) 8.03% 8.48% 8.48% 8.60% 9.06% 8.32% 7.98%
Tangible book value per share (non-GAAP)  $ 4.23  $ 4.21  $ 4.14  $ 4.16  $ 4.12  $ 4.21  $ 3.37
                

            








        

            

                

                    
Tags

                            
                                BANKING
                            
                            
                                EARNINGS
                            

                



        




    

        

        
Contact Data