Cordia Bancorp Inc. Reports First Quarter 2016 Results

MIDLOTHIAN, Va., May 16, 2016 (GLOBE NEWSWIRE) -- Cordia Bancorp Inc. ("Cordia") (NASDAQ:BVA), parent company of Bank of Virginia, reported net loss of $(2.315) million, or $(0.35) per share, for the first quarter of 2015, compared to net income of $351,000, $0.05 per share, for the first quarter of 2015.  Excluding one-time charges of $2.366 million related to the divestiture of CordiaGrad, our online student loan refinancing platform, core net earnings were $51,000, or $0.01 per share.  Included in first quarter results were $221,000 of non-interest expenses for CordiaGrad that will not be included in future quarters due to the divestiture.

 Highlights
  • Divestiture of CordiaGrad, our online student loan refinancing platform.  One-time charges related to the divestiture are $800,000 for stock compensation for the former chief executive officer, loss on sale of the CordiaGrad business of $843,000, and a loan held-for-sale valuation expense of $723,000, for a total of $2.366 million.
  • 16% year-over-year growth in loans, excluding guaranteed student loans
  • 9% year-over-year growth in total deposits
  • Net interest income up 19%, compared to the first quarter of 2015
  • Nonperforming assets decreased to 1.06% of total assets from 1.16% for the first quarter of 2015
  • Tangible book value per share was $3.94 at March 31, 2016, down from $4.20 at December 31, 2015
  • Net interest margin increased to 2.88% from 2.69% for the first quarter of 2015

Chief Executive Officer Ed Barham stated, "Clearly, the biggest impact to our first quarter results related to the company's strategic decision to exit the student loan refinance business.  While we will incur some additional transitional costs related to the divestiture of CordiaGrad over the next quarter, our second half of the year should generate improved earnings momentum as we focus on our core community banking business.  Despite the loss incurred from divestiture, Cordia Bancorp remains well capitalized as measured by regulatory standards."

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 six full-service 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)          
         
  March 31,   Dec. 31,   Sept. 30,   June 30,   March 31,
(Dollars in thousands, except per share data)   2016   2015   2015   2015   2015
Assets              
  Cash and due from banks   $ 4,911     $ 6,135     $ 9,437     $ 11,771     $ 9,602  
  Fed funds sold and interest-bearing deposits     12,805       12,325       15,970       7,593       23,495  
  Total cash and cash equivalents     17,716       18,460       25,407       19,364       33,097  
  Securities available for sale, at fair value     44,899       46,220       48,721       58,445       41,411  
  Securities held to maturity, at cost     37,227       25,500       26,281       27,087       20,132  
  Restricted securities     2,393       2,355       2,330       2,331       2,405  
  Loans held for sale     10,646       220       109       96       117  
  Loans held for investment:                    
    Commercial real estate     110,903       105,902       106,335       111,180       109,734  
    Commercial and industrial     32,881       34,819       26,751       27,919       24,057  
    Guaranteed student loans     51,693       53,847       56,072       57,900       61,441  
    Consumer and other     29,943       51,465       39,607       28,865       24,521  
  Total loans held for investment     225,420       246,033       228,765       225,864       219,753  
  Less: Allowance for loan losses     (866 )     (823 )     (903 )     (990 )     (1,102 )
  Net loans held for investment     224,554       245,210       227,862       224,874       218,651  
                           
  Premises and equipment, net     5,919       5,980       6,034       6,083       4,402  
  Accrued interest receivable     2,018       2,085       1,924       2,033       1,986  
  Other real estate owned, net of valuation allowance     2,017       1,870       1,761       1,769       1,647  
  Other assets     429       590       7,555       704       696  
    Total assets   $ 347,818     $ 348,490     $ 347,984     $ 342,786     $ 324,544  
                           
Liabilities and stockholders' equity                    
  Non-interest bearing deposits     26,938       28,969       26,829       30,066       26,489  
  Savings and interest bearing demand deposits     112,582       107,057       105,540       101,769       84,216  
  Time deposits     150,503       154,018       156,939       152,800       154,920  
    Total deposits     290,023       290,044       289,308       284,635       265,625  
                           
  Accrued expenses and other liabilities     943       707       553       464       1,061  
  FHLB borrowings     30,000       30,000       30,000       30,000       30,000  
    Total liabilities     320,966       320,751       319,861       315,099       296,686  
                           
  Common stock - voting     53       51       50       51       51  
  Common stock - nonvoting     14       14       14       14       14  
  Additional paid-in-capital     34,075       33,191       33,044       33,061       33,011  
  Retained deficit     (7,142 )     (4,827 )     (4,700 )     (4,830 )     (5,066 )
  Accumulated other comprehensive loss     (148 )     (690 )     (285 )     (609 )     (152 )
    Total stockholders' equity     26,852       27,739       28,123       27,687       27,858  
    Total liabilities and stockholders' equity   $ 347,818     $ 348,490     $ 347,984     $ 342,786     $ 324,544  
                           

 
Cordia Bancorp                    
Consolidated Statements of Income (unaudited)  
 
  Three Months Ended
  March 31,   Dec. 31,   Sept. 30,   June 30,   March 31,
(Dollars in thousands, except per share data)   2016   2015   2015   2015   2015
Interest Income  
  Interest and fees on loans   $ 2,628     $ 2,404     $ 2,294     $ 2,327     $ 2,183  
  Investment securities     398       412       446       383       363  
  Interest on federal funds sold and                    
  deposits with banks     9       8       9       5       7  
  Total interest income     3,035       2,824       2,749       2,715       2,553  
                   
Interest Expense                    
  Interest on deposits     546       529       506       470       454  
  Interest on FHLB Borrowings     95       95       95       93       89  
  Total interest expense     641       624       601       563       543  
                   
Net interest income     2,394       2,200       2,148       2,152       2,010  
  Provision for (recovery of) loan losses     98       37       (53 )     63       (340 )
Net interest income after provision for (recovery of) loan losses   2,296       2,163       2,201       2,089       2,350  
                           
Non-interest income (loss)                    
  Service charges on deposit accounts     31       39       35       30       30  
  Net gain (loss) on sale of available for sale securities     -       (3 )     22       -       114  
  Realized and unrealized gains (losses) on loans held for sale   (713 )     11       6       9       21  
  Other fee income     68       62       52       58       48  
    Total non-interest income (loss)     (614 )     109       115       97       213  
                           
Non-interest expense                    
  Salaries and employee benefits     1,904       1,006       1,085       1,082       1,280  
  Professional services     170       147       108       100       84  
  Occupancy     144       139       149       159       153  
  Reversal of occupancy fair value discount     -       -       -       (225 )     -  
  Data processing and communications     246       257       233       206       198  
  FDIC assessment and bank fees     169       195       88       92       90  
  Bank franchise taxes     48       49       49       49       49  
  Student loan servicing fees and other loan expenses     167       227       174       208       146  
  Other real estate expenses     39       13       26       45       6  
  Supplies and equipment     73       72       71       70       73  
  Insurance     18       19       20       19       20  
  Director's fees     53       104       28       21       26  
  Marketing and business development     35       118       64       31       18  
  Loss on sale of subsidiary     843       -       -       -       -  
  Other operating expenses     88       53       91       93       69  
    Total non-interest expense     3,997       2,399       2,186       1,950       2,212  
                           
Net   income (loss)   $ (2,315 )   $ (127 )   $ 130     $ 236     $ 351  
                           
Earnings (loss) per share, basic and diluted   $ (0.35 )   $ (0.02 )   $ 0.02     $ 0.04     $ 0.05  
Weighted average shares outstanding, basic     6,658,976       6,572,933       6,572,239       6,583,848       6,559,217  
Weighted average shares outstanding, diluted     6,658,976       6,572,933       6,572,239       6,583,848       6,559,217  
                           

 
Cordia Bancorp                    
Consolidated Financial Highlights (unaudited)  
  As of and for the Three Months Ended
  March 31,   Dec. 31,   Sept. 30,   June 30,   March 31,
(Dollars in thousands, except per share data)   2016   2015   2015   2015   2015
Results of Operations  
  Interest income   $ 3,035     $ 2,824     $ 2,749     $ 2,715     $ 2,553  
  Interest expense     641       624       601       563       543  
  Net interest income     2,394       2,200       2,148       2,152       2,010  
  Provision for (recovery of) loan losses     98       37       (53 )     63       (340 )
  Net interest income after provision for (recovery of) loan losses     2,296       2,163       2,201       2,089       2,350  
  Non-interest income (loss)     (614 )     109       115       97       213  
  Non-interest expense     3,997       2,399       2,186       1,950       2,212  
  Net income (loss)   $ (2,315 )   $ (127 )   $ 130     $ 236     $ 351  
                           
  Earnings (loss) per share, basic and diluted   $ (0.35 )   $ (0.02 )   $ 0.02     $ 0.04     $ 0.05  
  Weighted average shares outstanding, basic     6,658,976       6,572,933       6,572,239       6,583,848       6,559,217  
  Weighted average shares outstanding, diluted     6,658,976       6,572,933       6,572,239       6,583,848       6,559,217  
                           
Performance Ratios                    
  Return on average assets     -2.65 %     -0.14 %     0.15 %     0.29 %     0.44 %
  Return on average equity     -33.54 %     -1.79 %     1.85 %     3.40 %     5.20 %
  Return on average tangible equity     -33.61 %     -1.80 %     1.85 %     3.41 %     5.22 %
  Efficiency ratio     224.55 %     103.90 %     96.60 %     86.71 %     99.51 %
                           
Yields and Rates                    
  Yield on loans     4.18 %     4.03 %     4.09 %     4.18 %     4.16 %
  Yield on securities     2.18 %     2.15 %     2.06 %     2.12 %     2.07 %
  Yield on interest earning assets     3.65 %     3.39 %     3.34 %     3.51 %     3.42 %
  Cost of interest bearing deposits     0.83 %     0.80 %     0.77 %     0.79 %     0.78 %
  Cost of total deposits     0.75 %     0.72 %     0.70 %     0.71 %     0.70 %
  Cost of borrowings     1.23 %     1.26 %     1.26 %     1.19 %     1.25 %
  Cost of interest bearing liabilities     0.87 %     0.84 %     0.82 %     0.83 %     0.83 %
  Interest rate spread     2.78 %     2.55 %     2.52 %     2.67 %     2.59 %
  Net interest margin     2.88 %     2.64 %     2.61 %     2.78 %     2.69 %
                           
Capital                        
  Total equity to total assets     7.72 %     7.96 %     8.08 %     8.08 %     8.58 %
  Tangible equity to  total assets     7.70 %     7.94 %     8.06 %     8.05 %     8.56 %
  Book value per share     3.95       4.21       4.29       4.21       4.23  
  Tangible book value per share     3.94       4.20       4.27       4.19       4.22  
  Common shares outstanding     6,795,000       6,586,786       6,562,906       6,582,806       6,584,106  
                           
Average Balances                    
  Loans     $ 252,849     $ 236,822     $ 222,371     $ 223,286     $ 212,566  
  Securities     73,562       75,979       86,089       72,391       71,198  
  Earning assets     334,158       330,603       326,904       310,680       302,481  
  Total assets     351,450       350,910       346,917       327,439       321,455  
  Interest bearing deposits     264,891       263,393       261,609       239,871       236,415  
  Total deposits     291,847       292,067       288,455       267,356       264,434  
  FHLB borrowings     31,129       30,000       30,000       31,346       28,778  
  Interest bearing liabilities     296,020       293,393       291,609       271,217       265,193  
  Total equity     27,763       28,106       27,938       27,835       27,353  
  Tangible equity     27,700       28,034       27,857       27,745       27,254  
                           
Asset Quality                    
  Net charge-offs/(recoveries)     55       171       34       175       (353 )
  Net charge-off rate     0.09 %     0.29 %     0.06 %     0.31 %     -0.67 %
  Non-performing loans     1,683       1,834       1,975       1,918       2,108  
  Non-performing assets     3,700       3,704       3,736       3,687       3,755  
  Allowance for loan losses     866       823       903       990       1,102  
  Non-performing loans as a % of total loans held for investment     0.75 %     0.75 %     0.86 %     0.85 %     0.96 %
  Non-performing assets as a % of total assets     1.06 %     1.06 %     1.07 %     1.08 %     1.16 %
  Allowance for loan losses as a % of  total loans held for investment   0.38 %     0.33 %     0.39 %     0.44 %     0.50 %
  Allowance for loan losses as a % of non-performing loans     51.46 %     44.87 %     45.72 %     51.62 %     52.28 %
                           

 
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
  March 31,   Dec. 31,   Sept. 30,   June 30,   March 31,
(Dollars in thousands, except per share data)   2016   2015   2015   2015   2015
Tangible Equity and Tangible Assets (Period End)            
Total shareholders' equity (GAAP)   $ 26,852     $ 27,739     $ 28,123     $ 27,687     $ 27,858  
Less: intangible assets     59       68       77       86       95  
Tangible Equity (non-GAAP)   $ 26,793     $ 27,671     $ 28,046     $ 27,601     $ 27,763  
                   
Total assets (GAAP)   $ 347,818     $ 348,490     $ 347,984     $ 342,786     $ 324,544  
Less: intangible assets     59       68       77       86       95  
Tangible assets (non-GAAP)   $ 347,759     $ 348,422     $ 347,907     $ 342,700     $ 324,449  
                   
Total equity to total assets (GAAP)     7.72 %     7.96 %     8.08 %     8.08 %     8.58 %
Book value per share (GAAP)   $ 3.95     $ 4.21     $ 4.29     $ 4.21     $ 4.23  
Tangible equity to tangible assets (non-GAAP)     7.70 %     7.94 %     8.06 %     8.05 %     8.56 %
Tangible book value per share (non-GAAP)   $ 3.94     $ 4.20     $ 4.27     $ 4.19     $ 4.22  
                   
                   
Tangible Equity and Tangible Assets (Average)                    
Total shareholders' equity (GAAP)   $ 27,763     $ 28,106     $ 27,938     $ 27,835     $ 27,353  
Less: intangible assets     63       72       81       90       99  
Tangible Equity (non-GAAP)   $ 27,700     $ 28,034     $ 27,857     $ 27,745     $ 27,254  
                   
Total assets (GAAP)     351,450       350,910       346,917       327,439       321,455  
Less: intangible assets     63       72       81       90       99  
Tangible assets (non-GAAP)   $ 351,387     $ 350,838     $ 346,836     $ 327,349     $ 321,356  
                   
Total equity to total assets (GAAP)     7.90 %     8.01 %     8.05 %     8.50 %     8.51 %
Book value per share (GAAP)   $ 4.09     $ 4.27     $ 4.26     $ 4.23     $ 4.15  
Tangible equity to tangible assets (non-GAAP)     7.88 %     7.99 %     8.03 %     8.48 %     8.48 %
Tangible book value per share (non-GAAP)   $ 4.08     $ 4.26     $ 4.24     $ 4.21     $ 4.14  
       
FOR MORE INFORMATIONCONTACT:  Mark Severson, CFO, Cordia Bancorp Inc.804-763-1322

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