MIDLOTHIAN, Va., Aug. 15, 2012 (GLOBE NEWSWIRE) -- Bank of Virginia (the "Bank") (Nasdaq:BOVA) ( www.bankofva.com ), reported net income of $145,000, or $0.01 per share, for the quarter ended June 30, 2012, compared to a net loss of $1.3 million, or $(0.12) per share, for the quarter ended June 30, 2011. Quarterly earnings were driven by a release of loan loss reserves totaling $619,000. Net income for the six months ended June 30, 2012 totaled $490,000, an improvement of $3.6 million when compared to the net loss of $3.1 million for the six-months ended June 30, 2011.
"For the past two quarters we have continued to achieve reductions in the Bank's nonperforming loans, without any loss of capital and while continuing to rebuild our staff to position the Bank for future growth," said Jack Zoeller, Chairman and CEO. "We are delighted to report our second consecutive quarterly profit, after several difficult years for our shareholders. For the balance of the year, we will be redirecting our primary efforts to adding quality loans to the Bank's portfolio, lowering our funding costs and introducing exciting new technologies to support our existing customers and attract new ones."
The Bank's provision for loan losses declined $1.7 million compared to the $1.1 million provision for the quarter ended June 30, 2011. For the six months ended June 30, 2012, the Bank released $1.2 million from its loan loss reserves, compared to an addition of $2.6 million to reserves through a provision for the same period in 2011.Net interest income for the quarter ended June 30, 2012 totaled $1.1 million, down from $1.3 million for the quarter ended June 30, 2011. Noninterest expense improved to $1.6 million for the quarter ended June 30, 2012, from $1.7 million for the same period in 2011.