Cordia Bancorp Inc. Reports Fourth Quarter Results

| Source: Cordia Bancorp Cordia Bancorp

MIDLOTHIAN, Va., March 03, 2016 (GLOBE NEWSWIRE) -- Cordia Bancorp Inc. (“Cordia”) (NASDAQ:BVA), parent company of Bank of Virginia, reported a net loss of $127,000 or $(0.02) per share for the fourth quarter of 2015, compared to net income of $60,000, or $0.01 per share for the fourth quarter of 2014.  For the year ended December 31, 2015, net income was $590,000 or $0.9 per share compared to a net loss of $412,000, or $(0.09) per share, for the year ended December 31, 2014.

Highlights for the year 2015

  • Hiring of Ed Barham, former President/CEO of StellarOne, as President & CEO of Bank of Virginia in August 2015
  • 30% year-over-year growth in commercial and consumer loans
  • 9% year-over-year growth in total assets
  • 9% year-over-year growth in total deposits
  • Asset quality remains strong with non-performing assets at 1.06% of total assets.
  • Net interest income increased $284,000, or 3.5%, for the year ended December 31, 2015 versus 2014, net of acquisition accounting adjustments.

Balance Sheet Activity

  • Asset Growth.  Total assets increased to $348.5 million at December 31, 2015, compared to $318.6 million at December 31, 2014.  During the year ended December 31, 2015, loans held for investment increased 16%, or $33.1 million.  Of this amount, organic originations accounted for $44.1 million while purchased guaranteed student loans decreased $11.0 million. 
  • Deposit Growth.  Total deposits at December 31, 2015, were $290.0 million, an increase of $24.4 million from $265.6 million at December 31, 2014. 
  • Asset Quality.  Non-performing assets were $3.7 million, or 1.06% of total assets, at December 31, 2015, compared to $3.9 million, or 1.21% of total assets, at December 31, 2014.
  • Tangible Book Value.  Tangible book value per share was $4.20 at December 31, 2015 compared to $4.16 at December 31, 2014.

Operating Results

Three months ended December 31, 2015 compared to the three months ended December 31, 2014

  • Net loss for the quarter ended December 31, 2015 was $127,000 compared to net income of $60,000 for the prior year fourth quarter. 
  • Net interest income was $2.20 million for the fourth quarter of 2015, compared to $2.13 million for the fourth quarter of 2014. 
  • Net interest income, net of acquisition accounting adjustments, increased $71,000, or 3.4%.
  • Net interest margin was 2.64% and 2.83% for the fourth quarter of 2015 and 2014, respectively.  Adjusting for the impact of acquisition accounting, net interest margin was 2.62% for the 2015 quarter compared to 2.80% for the 2014 quarter. 
  • The provision for loan losses was $37,000 in the fourth quarter of 2015 compared to a provision of $182,000 in the prior year quarter.
  • Noninterest income decreased to $109,000 from $200,000 in the prior year quarter.
  • Noninterest expense increased $310,000 to $2.40 million for the fourth quarter of 2015, compared to $2.09 million for the fourth quarter of 2014.

Year-ended December 31, 2015 compared to the year-ended December 31, 2014

  • Net income for the year ended December 31, 2015 was $590,000 compared to a net loss of $412,000 for 2014. 
  • Net interest income was $8.51 million for the 2015 period, compared to $8.23 million for the 2014 period. 
  • Net interest income, net of acquisition accounting adjustments, increased $395,000, or 4.9%.
  • Net interest margin was 2.68% and 3.04% for the 2015 and 2014 periods, respectively.  Adjusting for the impact of acquisition accounting, net interest margin was 2.64% for the 2015 period compared to 2.96% for the 2014 period. 
  • The provision for loan losses was a recovery of $293,000 for 2015 compared to a provision of $305,000 for 2014.
  • Noninterest income increased to $534,000 from $467,000 in the prior year period due primarily to an increase in the sale of loans held for sale of $43,000 and an increase in fee income of $57,000 in the 2015 period.
  • Noninterest expense decreased $53,000 to $8.75 million for the 2015 period, compared to $8.80 million for the 2014 period 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.  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 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)  
     
 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, 
(Dollars in thousands, except per share data)  2015   2015   2015   2015   2014  
Assets       
 Cash and due from banks $  6,135  $  9,437  $  11,771  $  9,602  $  5,477  
 Fed funds sold and Interest-bearing deposits     12,325     15,970     7,593     23,495     16,363  
 Total cash and cash equivalents    18,460     25,407     19,364     33,097     21,840  
 Securities available for sale, at fair value    46,220     48,721     58,445     41,411     53,483  
 Securities held to maturity, at cost    25,500     26,281     27,087     20,132     20,716  
 Restricted securities    2,355     2,330     2,331     2,405     2,092  
 Loans held for sale    220     109     96     117     -  
 Loans held for investment:           
  Commercial real estate    105,902     106,335     111,180     109,734     103,253  
  Commercial and industrial    34,819     26,751     27,919     24,057     24,153  
  Guaranteed student loans    53,847     56,072     57,900     61,441     64,870  
  Consumer and other    51,465     39,607     28,865     24,521     20,683  
 Total loans held for investment    246,033     228,765     225,864     219,753     212,959  
 Less: Allowance for loan losses    (823)    (903)    (990)    (1,102)    (1,089) 
 Net loans held for investment    245,210     227,862     224,874     218,651     211,870  
               
 Premises and equipment, net    5,980     6,034     6,083     4,402     4,432  
 Accrued interest receivable    2,085     1,924     2,033     1,986     2,040  
 Other real estate owned, net of valuation allowance      1,870     1,761     1,769     1,647     1,641  
 Other assets    590     7,555     704     696     486  
  Total assets $  348,490  $  347,984  $  342,786  $  324,544  $  318,600  
               
Liabilities and stockholders' equity           
 Non-interest bearing deposits    28,969     26,829     30,066     26,489     29,795  
 Savings and interest bearing demand deposits    107,057     105,540     101,769     84,216     84,258  
 Time deposits    154,018     156,939     152,800     154,920     151,550  
  Total deposits    290,044     289,308     284,635     265,625     265,603  
               
 Accrued expenses and other liabilities    707     553     464     1,061     861  
 FHLB borrowings    30,000     30,000     30,000     30,000     25,000  
  Total liabilities    320,751     319,861     315,099     296,686     291,464  
               
 Common stock - voting    51     50     51     51     51  
 Common stock - nonvoting    14     14     14     14     14  
 Additional paid-in-capital    33,191     33,044     33,061     33,011     32,956  
 Retained deficit    (4,827)    (4,700)    (4,830)    (5,066)    (5,417) 
 Accumulated other comprehensive loss    (690)    (285)    (609)    (152)    (468) 
  Total stockholders' equity    27,739     28,123     27,687     27,858     27,136  
  Total liabilities and stockholders' equity $  348,490  $  347,984  $  342,786  $  324,544  $  318,600  
               

 

               
Cordia Bancorp
Consolidated Statements of Income (unaudited) 
 
 Three Months Ended Years Ended
 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31,
(Dollars in thousands, except per share data)  2015   2015   2015   2015   2014   2015   2014 
Interest Income 
     Interest and fees on loans $  2,404  $  2,294  $  2,327  $  2,183  $  2,247  $  9,208  $  8,923 
 Investment securities    412     446     383     363     405     1,604     1,269 
 Interest on federal funds sold and                 - 
         deposits with banks    8     9     5     7     6     29     25 
 Total interest income    2,824     2,749     2,715     2,553     2,658     10,841     10,217 
              
Interest Expense              
 Interest on deposits    529     506     470     454     451     1,959     1,761 
 Interest on FHLB Borrowings    95     95     93     89     76     372     230 
 Total interest expense    624     601     563     543     527     2,331     1,991 
              
Net interest income    2,200     2,148     2,152     2,010     2,131     8,510     8,226 
 Provision for (recovery of) loan losses    37     (53)    63     (340)    182     (293)    305 
Net interest income after provision for (recovery of) loan losses      2,163     2,201     2,089     2,350     1,949     8,803     7,921 
                  
Non-interest income              
 Service charges on deposit accounts    39     35     30     30     34     134     123 
 Net gain (loss) on sale of available for sale securities    (3)    22     -     114     116     133     177 
 Net gain (loss)  on sale of loans held for sale    11     6     9     21     (4)    47     4 
 Other fee income    62     52     58     48     54     220     163 
  Total non-interest income    109     115     97     213     200     534     467 
                  
Non-interest expense              
 Salaries and employee benefits    1,006     1,085     1,082     1,280     1,094     4,453     4,846 
 Professional services    147     108     100     84     104     439     427 
 Occupancy    139     149     159     153     139     600     565 
 Reversal of occupancy fair value discount    -     -     (225)    -     -     (225)    - 
 Data processing and communications    257     233     206     198     184     894     698 
 FDIC assessment and bank fees    195     88     92     90     96     465     385 
 Bank franchise taxes    49     49     49     49     23     196     102 
 Student loan servicing fees and other loan expenses    227     174     208     146     191     755     671 
 Other real estate expenses    13     26     45     6     18     90     46 
 Supplies and equipment    72     71     70     73     78     286     318 
 Insurance    19     20     19     20     42     78     167 
 Director's fees    104     28     21     26     50     179     187 
 Marketing and business development    118     64     31     18     21     231     51 
 Other operating expenses    53     91     93     69     49     306     337 
  Total non-interest expense    2,399     2,186     1,950     2,212     2,089     8,747     8,800 
                  
Net  income (loss) $  (127) $  130  $  236  $  351  $  60     590     (412)
                    
Earnings (loss) per share, basic and diluted $  (0.02) $  0.02  $  0.04  $  0.05  $  0.01  $  0.09  $  (0.09)
Weighted average shares outstanding, basic     6,572,933     6,572,239     6,583,848     6,559,217     6,504,106     6,572,097     4,722,556 
Weighted average shares outstanding, diluted    6,572,933     6,572,239     6,583,848     6,559,217     6,504,106     6,572,097     4,722,556 
                 

 

               
Cordia Bancorp
Consolidated Financial Highlights (unaudited) 
 As of and for the Three Months Ended Years Ended
 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31,
(Dollars in thousands, except per share data)  2015   2015   2015   2015   2014   2015   2014 
Results of Operations 
   Interest income $  2,824  $  2,749  $  2,715  $  2,553  $  2,658  $  10,841  $  10,217 
 Interest expense    624     601     563     543     527     2,331     1,991 
 Net interest income    2,200     2,148     2,152     2,010     2,131     8,510     8,226 
 Provision for (recovery of) loan losses    37     (53)    63     (340)    182     (293)    305 
 Net interest income after provision for (recovery of) loan losses    2,163     2,201     2,089     2,350     1,949     8,803     7,921 
 Non-interest income    109     115     97     213     200     534     467 
 Non-interest expense    2,399     2,186     1,950     2,212     2,089     8,747     8,800 
 Net income (loss) $  (127) $  130  $  236  $  351  $  60  $  590  $  (412)
                  
 Earnings (loss) per share, basics and diluted $  (0.02) $  0.02  $  0.04  $  0.05  $  0.01  $  0.09  $  (0.09)
 Weighted average shares outstanding, basic     6,572,933     6,572,239     6,583,848     6,559,217     6,504,106     6,572,097     4,722,556 
 Weighted average shares outstanding, diluted    6,572,933     6,572,239     6,583,848     6,559,217     6,504,106     6,572,097     4,722,556 
                  
Performance Ratios              
 Return on average assets  -0.14%  0.15%  0.29%  0.44%  0.08%  0.18%  -0.14%
 Return on average equity  -1.79%  1.85%  3.40%  5.20%  0.88%  2.12%  -1.77%
 Return on average tangible equity  -1.80%  1.85%  3.41%  5.22%  0.88%  2.13%  -1.77%
 Efficiency ratio  103.90%  96.60%  86.71%  99.51%  89.62%  96.72%  101.23%
                  
Yields and Rates              
 Yield on loans  4.03%  4.09%  4.18%  4.16%  4.29%  4.11%  4.50%
 Yield on securities  2.15%  2.06%  2.12%  2.07%  2.04%  2.10%  2.08%
 Yield on interest earning assets  3.39%  3.34%  3.51%  3.42%  3.53%  3.41%  3.78%
 Cost of interest bearing deposits  0.80%  0.77%  0.79%  0.78%  0.76%  0.79%  0.81%
 Cost of total deposits  0.72%  0.70%  0.71%  0.70%  0.68%  0.70%  0.73%
 Cost of borrowings  1.26%  1.26%  1.19%  1.25%  1.25%  1.24%  1.24%
 Cost of interest bearing liabilities  0.84%  0.82%  0.83%  0.83%  0.80%  0.83%  0.84%
 Interest rate spread  2.55%  2.52%  2.67%  2.59%  2.73%  2.58%  2.94%
 Net interest margin  2.64%  2.61%  2.78%  2.69%  2.83%  2.68%  3.04%
                  
Capital                
 Total equity to total assets  7.96%  8.08%  8.08%  8.58%  8.52%  7.96%  8.52%
 Tangible equity to  total assets  7.94%  8.06%  8.05%  8.56%  8.49%  7.94%  8.49%
 Book value per share    4.21     4.29     4.21     4.23     4.17     4.21     4.17 
 Tangible book value per share    4.20     4.27     4.19     4.22     4.16     4.20     4.16 
 Common shares outstanding    6,586,786     6,562,906     6,582,806     6,584,106     6,504,106     6,586,786     6,504,106 
                  
Average Balances              
 Loans  $  236,822  $  222,371  $  223,286  $  212,566  $  207,833  $  223,823     198,227 
 Securities    75,979     86,089     72,391     71,198     78,590     76,454     61,156 
 Earning assets    330,603     326,904     310,680     302,481     298,712     317,769     270,163 
 Total assets    350,910     346,917     327,439     321,455     315,167     336,789     285,028 
 Interest bearing deposits    263,393     261,609     239,871     236,415     235,878     249,540     217,745 
 Total deposits    292,067     288,455     267,356     264,434     262,947     278,180     241,441 
 FHLB borrowings    30,000     30,000     31,346     28,778     24,185     30,034     18,616 
 Interest bearing liabilities    293,393     291,609     271,217     265,193     260,063     279,574     236,361 
 Total equity    28,106     27,938     27,835     27,353     27,198     27,810     23,342 
 Tangible equity    28,034     27,857     27,745     27,254     27,089     27,724     23,220 
                  
Asset Quality              
 Net charge-offs/(recoveries)    171     34     175     (353)    319     27     705 
 Net charge-off rate  0.29%  0.06%  0.31%  -0.67%  0.61%  0.01%  0.36%
 Non-performing loans    1,834     1,975     1,918     2,108     2,221     1,834     2,221 
 Non-performing assets    3,704     3,736     3,687     3,755     3,862     3,704     3,862 
 Allowance for loan losses    823     903     990     1,102     1,089     823     1,089 
 Non-performing loans as a % of total loans held for investment  0.75%  0.86%  0.85%  0.96%  1.04%  0.75%  1.04%
 Non-performing assets as a % of total assets  1.06%  1.07%  1.08%  1.16%  1.21%  1.06%  1.21%
 Allowance for loan losses as a % of  total loans held for investment    0.33%  0.39%  0.44%  0.50%  0.51%  0.33%  0.51%
 Allowance for loan losses as a % of non-performing loans  44.87%  45.72%  51.62%  52.28%  49.03%  44.87%  49.03%
                  

 

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 Years Ended
      Dec. 31, Sept. 30, June 30, March 31,  Dec. 31, Dec. 31,
(Dollars in thousands, except per share data)   2015   2015   2015   2015   2014   2015   2014 
Tangible Equity and Tangible Assets (Period End)  
                
Total shareholders' equity (GAAP) $  27,739  $  28,123  $  27,687  $  27,858  $  27,136  $  27,739  $  27,136 
Less: intangible assets    68     77     86     95     104     68     104 
Tangible Equity (non-GAAP) $  27,671  $  28,046  $  27,601  $  27,763  $  27,032  $  27,671  $  27,032 
              
Total assets (GAAP) $  348,490  $  347,984  $  342,786  $  324,544  $  318,600  $  348,490  $  318,600 
Less: intangible assets    68     77     86     95     104     68     104 
Tangible assets (non-GAAP) $  348,422  $  347,907  $  342,700  $  324,449  $  318,496  $  348,422  $  318,496 
              
Total equity to total assets (GAAP)  7.96%  8.08%  8.08%  8.58%  8.52%  7.96%  8.52%
Book value per share (GAAP) $  4.21  $  4.29  $  4.21  $  4.23  $  4.17  $  4.21  $  4.17 
Tangible equity to tangible assets (non-GAAP)  7.94%  8.06%  8.05%  8.56%  8.49%  7.94%  8.49%
Tangible book value per share (non-GAAP) $  4.20  $  4.27  $  4.19  $  4.22  $  4.16  $  4.20  $  4.16 
              
              
Tangible Equity and Tangible Assets (Average)              
Total shareholders' equity (GAAP) $  28,106  $  27,938  $  27,835  $  27,353  $  27,198  $  27,810  $  23,342 
Less: intangible assets    72     81     90     99     109     86     122 
Tangible Equity (non-GAAP) $  28,034  $  27,857  $  27,745  $  27,254  $  27,089  $  27,724  $  23,220 
              
Total assets (GAAP)    350,910     346,917     327,439     321,455     315,167     336,789     285,028 
Less: intangible assets    72     81     90     99     109     86     122 
Tangible assets (non-GAAP) $  350,838  $  346,836  $  327,349  $  321,356  $  315,058  $  336,703  $  284,906 
              
Total equity to total assets (GAAP)  8.01%  8.05%  8.50%  8.51%  8.63%  8.26%  8.19%
Book value per share (GAAP) $  4.27  $  4.26  $  4.23  $  4.15  $  4.18  $  4.22  $  3.59 
Tangible equity to tangible assets (non-GAAP)  7.99%  8.03%  8.48%  8.48%  8.60%  8.23%  8.15%
Tangible book value per share (non-GAAP) $  4.26  $  4.24  $  4.21  $  4.14  $  4.16  $  4.21  $  3.57 
     

            











    

        

        
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