Bank Of Virginia Announces Second Quarter Profit

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. 

For the six-months ended June 30, 2012, net interest income totaled $2.3 million, a decline of $515,000 when compared to the same period in 2011, mainly due to the decline in total loans. Noninterest expense improved $220,000 from $3.6 million for the six-months ended June 30, 2011 to $3.4 million for same period ended in 2012.

The Bank's total assets were $170.2 million at June 30, 2012, compared to $165.5 million at December 31, 2011. Net loans increased $917,000, or 0.9%, from $104.7 million at December 31, 2011 to $105.6 million at June 30, 2012. Total cash and cash equivalents increased $13.2 million to $39.9 million at June 30, 2012, from $26.7 million at December 31, 2011, primarily due to cash received from the sale of securities.

Total deposits increased $4.5 million, or 3.0% to $151.7 million at June 30, 2012 from $147.2 million at December 31, 2011.  Savings and interest bearing demand deposits increased $2.6 million, or 8.8%, from $29.7 million at December 31, 2011 to $32.3 million at June 30, 2012. Total time deposits increased $1.8 million, or 1.8%, to $102.5 million at June 30, 2012 from $100.7 million at December 31, 2011.

Asset Quality

The level of nonperforming assets decreased from $10.1 million or 6.1% of assets at December 31, 2011, to $8.5 million or 5.0% of assets at June 30, 2012. Nonaccrual loans decreased from $8.9 million, or 8.0% of total loans, to $6.8 million, or 6.2% of total loans over the same six months. On a linked quarter basis, nonaccrual loans decreased $206,000 from $7.0 million at March 31, 2012 to $6.8 million at June 30, 2012, and nonperforming assets decreased $255,000 from $8.7 million at March 31, 2012 to $8.5 million at June 30, 2012.  Total loans past due 30 days or more improved $947,000 to $6.2 million at June 30, 2012 from $7.1 million at December 31, 2011.

About Bank of Virginia

Bank of Virginia, a state chartered bank headquartered in Midlothian, Virginia, currently operates four full-service offices in the counties of Chesterfield and Henrico, Virginia. Bank of Virginia's common stock is traded on the NASDAQ stock market under the quotation symbol "BOVA". Additional investor relations information can be found on the internet at www.bankofva.com. Bank of Virginia is a member of the FDIC and Equal Housing Lender.

DISCLAIMER

The information as of and for the three and six months ended June 30, 2012, as presented, is unaudited. 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 in the Bank's periodic filings with the Board of Governors of the Federal Reserve System, including the Bank's annual report on Form 10-K. Pursuant to the Private Securities Litigation Reform Act of 1995, the Bank does not undertake to update forward-looking statements contained within this news release.
Bank of Virginia
Selected Financial Information and Other Data
($ in thousands, except per share data)
         
         
  Three months ended Six months ended
  June 30, June 30,
  2012 2011 2012 2011
Summary of Operations        
Total interest income  $ 1,661  $ 2,152  $ 3,463  $ 4,524
Total interest expense  597  839  1,204  1,750
Net Interest Income  1,064  1,313  2,259  2,774
Provision for loan losses  (619)  1,110  (1,168)  2,593
Net interest income after provision for loan losses  1,683  203  3,427  181
Non Interest Income  72  188  439  331
Non Interest Expense  1,610  1,708  3,376  3,596
 Net Income   $ 145  $ (1,317)  $ 490  $ (3,084)
         
Performance Ratios        
Earnings per share  $ 0.01  $ (0.12)  $ 0.04  $ (0.27)
Book value per share  $ 1.14  $ 1.24  $ 1.14  $ 1.24
Net interest margin 2.75% 2.82% 2.96% 2.97%
Return on average assets 0.09% -0.67% 0.30% -1.53%
Return on average equity 1.15% -9.08% 3.90% -19.95%
         
         
  June 30, March 31, December 31, June 30,
  2012 2012 2011 2011
Balance Sheet Summary        
 Total loans   $ 110,118  $ 111,661  $ 110,334  $ 126,933
 Total earning assets   $ 154,582  $ 145,239  $ 150,712  $ 172,328
 Total assets   $ 170,201  $ 165,118  $ 165,465  $ 187,201
 Deposits   $ 151,701  $ 146,709  $ 147,241  $ 162,452
 FHLB borrowings   $ 5,000  $ 5,000  $ 5,000  $ 10,000
 Shareholders' equity   $ 12,893  $ 12,750  $ 12,667  $ 14,071
         
Asset Quality Ratios        
 Nonaccrual loans   $ 6,830  $ 7,036  $ 8,878  $ 8,612
 Other real estate owned   $ 1,633  $ 1,682  $ 1,262  $ 1,986
 Allowance for loan losses   $ 4,539  $ 5,367  $ 5,672  $ 8,843
Nonaccrual loans to total loans 6.20% 6.30% 8.04% 6.78%
Allowance for loan losses to total loans 4.12% 4.81% 5.14% 6.97%
CONTACT: Jack Zoeller,         Chairman & CEO, 804-763-1333

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX