Cordia Bancorp Inc. Reports Fourth Quarter Results

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  
         
CONTACT:  Mark Severson, EVP & CFO, Cordia Bancorp Inc.804-763-1322

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