MIDLOTHIAN, Va., Aug. 6, 2014 (GLOBE NEWSWIRE) -- Cordia Bancorp Inc. ("Cordia") (Nasdaq:BVA), parent company of Bank of Virginia, reported a net loss of $270,000 or $(0.09) per share for the second quarter of 2014, compared to net income of $261,000 or $0.09 per share for the second quarter of 2013. For the first six months of 2014, the net loss was $544,000 or $(0.19) per share compared to net income of $482,000 or $0.20 per share for the same period of 2013.
Highlights for the first six months of 2014
- $15.4 million capital raise completed in April 2014
- 26% growth in total assets
- 72% growth in investment securities
- 17% growth in loans held for investments
- 16% growth in deposits
- 14% increase in employees
- Nonperforming assets decreased to 1.4% of total assets
- Conversion of Cordia's recently issued preferred stock into approximately 3,629,871 shares of voting and nonvoting common stock
Chief Executive Officer Jack Zoeller stated, "With the $15.4 million capital raise completed, we are turning our focus to building the infrastructure to solidly grow the company. We have added significantly to our securities and student loan portfolios and have experienced strong commercial loan growth volume over the past few months. In addition, we recruited three experienced officers who will give an added boost to our asset originations in future periods."
Mr. Zoeller continued, "To help fund our growth, we opened two new branch office locations in the Richmond metro market last month. Although our additional lenders and branches will slightly constrain profitability in the short term, they are an important part of our strategy to build sustained core profitability in 2015 and beyond."
Balance Sheet Activity
- Asset Growth. Total assets were $295.5 million at June 30, 2014, compared to $235.1 million at December 31, 2013. During the first six months of 2014 organic loans increased a net $15.3 million while student loans, 98% guaranteed by the U.S. Department of Education, increased a net $15.2 million. In addition, investment securities increased $28.3 miillion.
- Deposit Growth and Mix. Total deposits increased 16% to $245.2 million at June 30, 2014, compared to $210.8 million at December 31, 2013. Non-interest bearing deposits increased 9% while interest bearing deposits increased over 17% during the six month ended June 30, 2014.
- Asset Quality. Asset quality continued to improve, with total non-performing assets decreasing to $4.1 million, or 1.4% of total assets, at June 30, 2014, from $5.5 million, or 2.3% of assets, at December 31, 2013. There were no delinquencies in the Company's accruing organic loan portfolio at June 30, 2014.
- Tangible Book Value. Tangible book value per share was $4.12 at June 30, 2014.
Operating Results
Three months ended June 30, 2014 compared to the three months ended June 30, 2013
- The net loss for the quarter ended June 30, 2014 was $270,000 compared to net income of $261,000 for the prior year second quarter.
- Net interest income was $2.07 million for the second quarter of 2014, compared to $2.15 million for the second quarter of 2013.
- Net interest margin was 3.05% and 3.49% for the second quarter of 2014 and 2013, respectively. Adjusting for the impact of purchase accounting, net interest margin increased to 2.95% from 2.84%, or 11 basis points, from the 2013 period.
- The provision for loan losses was $209,000 in the second quarter of 2014 compared to $7,000 in the prior year quarter.
- Noninterest expense increased to $2.2 million for the second quarter of 2014, compared to $1.9 million for the second quarter of 2013. The increase in noninterest expense was primarily due to an increase in salaries and benefits of $176,000 resulting from staff additions and $108,000 in loan expenses.
Six months ended June 30, 2014 compared to the six months ended June 30, 2013
- The net loss for the first six months of 2014 was $544,000 compared to net income of $482,000 for the first six months of 2013.
- Net interest income was $3.97 million for the 2014 period, compared to $4.38 million for the 2013 period.
- Net interest margin for the 2014 period was 3.19% compared to 3.87% for the 2013 period. Adjusting for the impact of purchase accounting, net interest margin increased to 3.06% from 2.86%, or 20 basis points, from the 2013 period.
- Noninterest income was $185,000 for the 2014 period, compared to $133,000 for the 2013 period. The increase was driven by a net gain on the sale of available for sale securities of $64,000 in the first quarter of 2014.
- Noninterest expense increased to $4.5 million for the 2014 period, compared to $3.9 million for the 2014 period. The increase in noninterest expense was primarily due to a one-time accrual of incentive compensation recorded in 2014 and an increase in servicing fees due to the growth of the student loan portfolio.
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) | |||||
| June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | |
| (Dollars in thousands, except per share data) | 2014 | 2014 | 2013 | 2013 | 2013 |
| Assets | |||||
| Cash and due from banks | $ 5,332 | $ 10,499 | $ 5,290 | $ 6,893 | $ 3,756 |
| Fed funds sold and Interest-bearing deposits | 9,843 | 16,839 | 8,694 | 15,889 | 27,766 |
| Total cash and cash equivalents | 15,175 | 27,338 | 13,984 | 22,782 | 31,522 |
| Securities available for sale, at fair value | 45,835 | 24,464 | 24,567 | 29,807 | 22,105 |
| Securities held to maturity | 21,839 | 14,500 | 14,753 | -- | -- |
| Restricted securities | 1,525 | 1,529 | 1,074 | 1,071 | 1,134 |
| Loans held for investment: | |||||
| Commercial real estate | 90,909 | 85,084 | 82,602 | 85,962 | 80,289 |
| Commercial and industrial | 24,605 | 22,118 | 21,208 | 20,388 | 21,273 |
| Guaranteed student loans | 70,624 | 80,966 | 55,427 | 51,293 | 52,957 |
| Consumer and other | 18,147 | 16,914 | 14,770 | 15,146 | 13,960 |
| Total loans held for investment | 204,285 | 205,082 | 174,007 | 172,789 | 168,479 |
| Less: Allowance for loan losses | (1,407) | (1,504) | (1,489) | (1,517) | (1,562) |
| Net loans held for investment | 202,878 | 203,578 | 172,518 | 171,272 | 166,917 |
| Loans held for sale | -- | -- | -- | -- | -- |
| Premises and equipment, net | 4,510 | 4,430 | 4,464 | 4,512 | 4,287 |
| Accrued interest receivable | 1,830 | 2,177 | 1,655 | 1,335 | 1,132 |
| Other real estate owned, net of valuation allowance | 1,543 | 1,543 | 1,545 | 1,545 | 1,768 |
| Other assets | 390 | 697 | 588 | 648 | 655 |
| Total assets | $ 295,525 | $ 280,256 | $ 235,148 | $ 232,972 | $ 229,520 |
| Liabilities and stockholders' equity | |||||
| Non-interest bearing deposits | 24,883 | 21,642 | 22,845 | 21,719 | 21,338 |
| Savings and interest bearing demand deposits | 76,044 | 74,825 | 60,685 | 59,546 | 49,493 |
| Time deposits, $100,000 and greater | 93,565 | 87,559 | 76,231 | 75,023 | 79,795 |
| Other time deposits | 50,701 | 51,002 | 51,053 | 52,620 | 54,732 |
| Total deposits | 245,193 | 235,028 | 210,814 | 208,908 | 205,358 |
| Accrued expenses and other liabilities | 3,419 | 12,202 | 1,047 | 897 | 998 |
| FHLB borrowings | 20,000 | 20,000 | 10,000 | 10,000 | 10,000 |
| Total Liabilities | 268,612 | 267,230 | 221,861 | 219,805 | 216,356 |
| Preferred stock | -- | -- | -- | -- | -- |
| Common stock - voting | 50 | 28 | 28 | 28 | 28 |
| Common stock - nonvoting | 14 | -- | -- | -- | -- |
| Additional paid-in-capital | 32,848 | 18,672 | 18,648 | 18,606 | 18,579 |
| Retained deficit | (5,559) | (5,289) | (5,005) | (5,011) | (5,219) |
| Accumulated other comprehensive income | (440) | (385) | (384) | (456) | (224) |
| Total stockholders' equity | 26,913 | 13,026 | 13,287 | 13,167 | 13,164 |
| Total liabilities and stockholders' equity | $ 295,525 | $ 280,256 | $ 235,148 | $ 232,972 | $ 229,520 |
| Cordia Bancorp | |||||||
| Consolidated Statemtents of Income (unaudited) | |||||||
| Three Months Ended | Six Months Ended | ||||||
| June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | June 30, | June 30, | |
| (Dollars in thousands, except per share data) | 2014 | 2014 | 2013 | 2013 | 2013 | 2014 | 2013 |
| Interest Income | |||||||
| Interest and fees on loans | $ 2,252 | $ 2,149 | $ 2,089 | $ 2,182 | $ 2,516 | $ 4,401 | $ 5,095 |
| Investment securities | 311 | 207 | 161 | 123 | 72 | 518 | 142 |
| Interest on federal funds sold and deposits with banks | 9 | 6 | 10 | 19 | 29 | 15 | 44 |
| Total interest income | 2,572 | 2,362 | 2,260 | 2,324 | 2,617 | 4,934 | 5,281 |
| Interest Expense | |||||||
| Interest on deposits | 441 | 426 | 412 | 415 | 426 | 867 | 818 |
| Interest on FHLB Borrowings | 56 | 41 | 40 | 42 | 41 | 97 | 81 |
| Total interest expense | 497 | 467 | 452 | 457 | 467 | 964 | 899 |
| Net interest income | 2,075 | 1,895 | 1,808 | 1,867 | 2,150 | 3,970 | 4,382 |
| Provision for (benefit from) loan losses | 209 | 20 | (92) | (23) | 7 | 229 | 134 |
| Net interest income after provision for loan losses | 1,866 | 1,875 | 1,900 | 1,890 | 2,143 | 3,741 | 4,248 |
| Non-interest income | |||||||
| Service charges on deposit accounts | 19 | 26 | 40 | 31 | 29 | 45 | 62 |
| Net gain on sale of available for sale securities | -- | 64 | -- | -- | -- | 64 | -- |
| Other fee income | 43 | 33 | 46 | 51 | 36 | 76 | 71 |
| Total non-interest income | 62 | 123 | 86 | 82 | 65 | 185 | 133 |
| Non-interest expense | |||||||
| Salaries and employee benefits | 1,150 | 1,406 | 1,066 | 991 | 974 | 2,556 | 2,159 |
| Professional services | 125 | 106 | 161 | 67 | 211 | 231 | 273 |
| Occupancy | 120 | 151 | 138 | 137 | 145 | 271 | 290 |
| Data processing and communictions | 151 | 142 | 139 | 140 | 144 | 293 | 269 |
| FDIC assessment and bank fees | 93 | 94 | 97 | 102 | 114 | 187 | 234 |
| Bank franchise taxes | 27 | 29 | 14 | 14 | 20 | 56 | 46 |
| Loan expenses | 210 | 126 | 76 | 81 | 102 | 336 | 117 |
| Other real estate expenses | 17 | 5 | 16 | 5 | 12 | 22 | 28 |
| Gain on sale of OREO | 65 | 75 | 75 | 30 | 64 | 140 | 133 |
| Supplies and equipment | 44 | 41 | 40 | 42 | 42 | 85 | 84 |
| Insurance | 24 | 16 | 32 | 34 | 38 | 40 | 72 |
| Marketing and business development | 9 | 6 | 32 | 19 | 15 | 15 | 37 |
| Other | 163 | 85 | 95 | 102 | 66 | 248 | 157 |
| Total non-interest expense | 2,198 | 2,282 | 1,981 | 1,764 | 1,947 | 4,480 | 3,899 |
| Consolidated net income (loss) before non-controlling interest | (270) | (284) | 5 | 208 | 261 | (554) | 482 |
| Net income (loss) | (270) | (284) | 5 | 208 | 261 | (554) | 482 |
| Earnings per share, basic and diluted | $ (0.09) | $ (0.10) | $ -- | $ 0.07 | $ 0.09 | $ (0.19) | $ 0.20 |
| Weighted average shares outstanding, basic | 3,017,772 | 2,776,992 | 2,773,320 | 2,768,484 | 2,764,090 | 2,898,047 | 2,431,019 |
| Weighted average shares outstanding, diluted | 3,017,772 | 2,776,992 | 2,788,302 | 2,777,840 | 2,775,802 | 2,898,047 | 2,444,923 |
| Cordia Bancorp | |||||||
| Consolidated Financial Highlights (unaudited) | |||||||
| As of and for the Three Months Ended | Six Months Ended | ||||||
| June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | June 30, | June 30, | |
| (Dollars in thousands, except per share data) | 2014 | 2014 | 2013 | 2013 | 2013 | 2014 | 2013 |
| Results of Operations | |||||||
| Interest income | $ 2,572 | $ 2,362 | $ 2,260 | $ 2,324 | $ 2,617 | $ 4,934 | $ 5,281 |
| Interest expense | 497 | 467 | 452 | 457 | 467 | 964 | 899 |
| Net interest income | 2,075 | 1,895 | 1,808 | 1,867 | 2,150 | 3,970 | 4,382 |
| Provision (benefit) for loan losses | 209 | 20 | (92) | (23) | 7 | 229 | 134 |
| Net interest income after provision for loan losses | 1,866 | 1,875 | 1,900 | 1,890 | 2,143 | 3,741 | 4,248 |
| Non-interest income | 62 | 123 | 86 | 82 | 65 | 185 | 133 |
| Non-interest expense | 2,198 | 2,282 | 1,981 | 1,764 | 1,947 | 4,480 | 3,899 |
| Net income | $ (270) | $ (284) | $ 5 | $ 208 | $ 261 | $ (554) | $ 482 |
| Earnings per share, basics and diluted | $ (0.09) | $ (0.10) | $ -- | $ 0.07 | $ 0.09 | $ (0.19) | $ 0.20 |
| Weighted average shares outstanding, basic | 3,017,772 | 2,776,992 | 2,773,320 | 2,768,484 | 2,764,090 | 2,898,047 | 2,431,019 |
| Weighted average shares outstanding, diluted | 3,017,772 | 2,776,992 | 2,788,302 | 2,777,840 | 2,775,802 | 2,898,047 | 2,444,923 |
| Performance Ratios | |||||||
| Return on average assets | -0.38% | -0.47% | 0.01% | 0.35% | 0.41% | -0.42% | 0.41% |
| Return on average equity | -4.20% | -8.52% | 0.15% | 6.39% | 7.88% | -5.66% | 7.63% |
| Return on average tangible equity | -4.22% | -8.61% | 0.15% | 6.46% | 7.97% | -5.70% | 7.73% |
| Efficiency ratio | 102.85% | 113.08% | 104.59% | 90.51% | 87.90% | 107.82% | 86.36% |
| Yields and Rates | |||||||
| Yield on loans | 4.39% | 4.88% | 4.82% | 5.11% | 5.55% | 4.60% | 6.03% |
| Yield on securities | 2.27% | 2.08% | 2.14% | 1.79% | 1.70% | 2.19% | 1.63% |
| Yield on interest earning assets | 3.77% | 4.16% | 4.13% | 4.09% | 4.23% | 3.94% | 4.63% |
| Cost of interest bearing deposits | 0.82% | 0.88% | 0.89% | 0.88% | 0.82% | 0.85% | 0.86% |
| Cost of total deposits | 0.74% | 0.79% | 0.80% | 0.79% | 0.75% | 0.76% | 0.78% |
| Cost of borrowings | 1.12% | 1.62% | 1.60% | 1.68% | 1.64% | 1.29% | 1.62% |
| Cost of interest bearing liabilities | 0.84% | 0.92% | 0.93% | 0.92% | 0.86% | 0.88% | 0.90% |
| Interest rate spread | 2.93% | 3.25% | 3.21% | 3.17% | 3.38% | 3.06% | 3.73% |
| Net interest margin | 3.05% | 3.34% | 3.30% | 3.29% | 3.49% | 3.19% | 3.87% |
| Capital | |||||||
| Total equity to total assets | 9.11% | 4.65% | 5.65% | 5.65% | 5.74% | 9.11% | 5.74% |
| Tangible equity to total assets | 9.07% | 4.60% | 5.59% | 5.59% | 5.67% | 9.07% | 5.67% |
| Book value per share | 4.14 | 4.67 | 4.77 | 4.74 | 4.76 | 4.14 | 4.76 |
| Tangible book value per share | 4.12 | 4.63 | 4.72 | 4.69 | 4.71 | 4.12 | 4.71 |
| Common shares outstanding | 6,505,781 | 2,788,302 | 2,788,302 | 2,775,802 | 2,764,090 | 6,505,781 | 2,764,090 |
| Average Balances | |||||||
| Loans | 205,104 | 176,161 | 173,536 | 170,969 | 181,373 | 191,451 | 168,928 |
| Securities | 54,904 | 39,747 | 30,156 | 27,509 | 16,922 | 47,367 | 17,410 |
| Earning assets | 272,733 | 226,968 | 218,707 | 227,110 | 247,283 | 250,715 | 228,170 |
| Total assets | 286,525 | 241,660 | 231,435 | 235,067 | 254,765 | 264,216 | 235,273 |
| Interest bearing deposits | 215,856 | 193,946 | 184,920 | 188,526 | 208,433 | 204,959 | 189,713 |
| Total deposits | 238,416 | 215,721 | 206,981 | 210,395 | 228,571 | 227,130 | 209,049 |
| FHLB borrowings | 20,000 | 10,111 | 10,000 | 10,000 | 10,000 | 15,083 | 10,000 |
| Interest bearing liabilities | 235,856 | 204,057 | 194,920 | 198,526 | 218,433 | 220,042 | 199,713 |
| Total equity | 25,727 | 13,332 | 13,266 | 13,027 | 13,254 | 19,564 | 12,639 |
| Tangible equity | 25,601 | 13,196 | 13,123 | 12,875 | 13,093 | 19,434 | 12,473 |
| Asset Quality | |||||||
| Net charge-offs | 306 | 5 | (65) | 22 | 28 | 311 | 689 |
| Net charge-off rate | 0.60% | 0.01% | -0.15% | 0.05% | 0.06% | 0.16% | 0.41% |
| Non-performing loans | 2,572 | 3,225 | 3,934 | 4,054 | 3,980 | 2,572 | 3,980 |
| Non-performing assets | 4,115 | 4,768 | 5,479 | 5,599 | 5,748 | 4,115 | 5,748 |
| Allowance for loan losses | 1,407 | 1,504 | 1,489 | 1,517 | 1,562 | 1,407 | 1,562 |
| Non-performing loans as a % of total loans held for investment | 1.26% | 1.57% | 2.26% | 2.35% | 2.36% | 1.26% | 1.94% |
| Non-performing assets as a % of total assets | 1.39% | 1.70% | 2.33% | 2.40% | 2.50% | 1.39% | 2.05% |
| Allowance for loan losses as a % of total loans held for investment | 0.69% | 0.73% | 0.86% | 0.88% | 0.93% | 0.69% | 0.76% |
| Allowance for loan losses as a % of non-performing loans | 54.70% | 46.64% | 37.85% | 37.42% | 39.25% | 54.70% | 39.25% |
| 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 | Six Months Ended | ||||||
| June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | June 30, | ||
| (Dollars in thousands, except per share data) | 2014 | 2014 | 2013 | 2013 | 2013 | 2014 | 2013 |
| Tangible Equity and Tangible Assets (Period End) | |||||||
| Total shareholders' equity (GAAP) | $ 26,913 | $ 13,026 | $ 13,287 | $ 13,167 | $ 13,164 | $ 26,913 | $ 13,164 |
| Less: intangible assets | 121 | 130 | 139 | 148 | 157 | 121 | 157 |
| Tangible Equity (non-GAAP) | $ 26,792 | $ 12,896 | $ 13,148 | $ 13,019 | $ 13,007 | $ 26,792 | $ 13,007 |
| -- | -- | ||||||
| Total assets (GAAP) | $ 295,525 | $ 280,256 | $ 235,148 | $ 232,972 | $ 229,520 | $ 295,525 | $ 229,520 |
| Less: intangible assets | 121 | 130 | 139 | 148 | 157 | 121 | 157 |
| Tangible assets (non-GAAP) | $ 295,404 | $ 280,126 | $ 235,009 | $ 232,824 | $ 229,363 | $ 295,404 | $ 229,363 |
| -- | -- | ||||||
| Total equity to total assets (GAAP) | 9.11% | 4.65% | 5.65% | 5.65% | 5.74% | 9.11% | 5.74% |
| Book value per share (GAAP) | $ 4.14 | $ 4.67 | $ 4.77 | $ 4.74 | $ 4.76 | $ 4.14 | $ 4.76 |
| Tangible equity to tangible assets (non-GAAP) | 9.07% | 4.60% | 5.59% | 5.59% | 5.67% | 9.07% | 5.67% |
| Tangible book value per share (non-GAAP) | $ 4.12 | $ 4.63 | $ 4.72 | $ 4.69 | $ 4.71 | $ 4.12 | $ 4.71 |
| Tangible Equity and Tangible Assets (Average) | |||||||
| Total shareholders' equity (GAAP) | 25,727 | 13,332 | 13,266 | 13,027 | 13,254 | 19,564 | 12,639 |
| Less: intangible assets | 126 | 136 | 144 | 153 | 162 | 130 | 166 |
| Tangible Equity (non-GAAP) | $ 25,601 | $ 13,196 | $ 13,123 | $ 12,875 | $ 13,093 | $ 19,434 | $ 12,473 |
| Total assets (GAAP) | 286,525 | 241,660 | 231,435 | 235,067 | 254,765 | 264,216 | 235,273 |
| Less: intangible assets | 126 | 136 | 144 | 153 | 162 | 130 | 166 |
| Tangible assets (non-GAAP) | $ 286,399 | $ 241,524 | $ 231,292 | $ 234,915 | $ 254,604 | $ 264,086 | $ 235,107 |
| Total equity to total assets (GAAP) | 8.98% | 5.52% | 5.73% | 5.54% | 5.20% | 7.40% | 5.37% |
| Book value per share (GAAP) | $ 3.95 | $ 4.78 | $ 4.76 | $ 4.69 | $ 4.80 | $ 3.01 | $ 4.57 |
| Tangible equity to tangible assets (non-GAAP) | 8.94% | 5.46% | 5.67% | 5.48% | 5.14% | 7.36% | 5.31% |
| Tangible book value per share (non-GAAP) | $ 3.94 | $ 4.73 | $ 4.71 | $ 4.64 | $ 4.74 | $ 2.99 | $ 4.51 |