Bank of Virginia Announces 2011 Year-End Results
31 Marzo 2012 - 1:06AM
Bank of Virginia (Nasdaq:BOVA) (www.bankofva.com) announced
financial results for the year ended December 31, 2011.
For the year ended December 31, 2011, the Bank reported a net
loss of $4.5 million, or ($0.39) per share, an improvement of $4.7
million when compared to the loss of $9.2 million for the year
ended December 31, 2010. The loss in 2011 was primarily a result of
a $2.7 million provision for loan losses recorded in the first
three quarters and a $1.3 million decline in net interest income
due to a winnowing of the loan portfolio while the Bank's new
credit team was put in place.
"The Bank undertook a complete revamping in 2011, recruiting new
executives to head credit, lending, finance and operations," stated
Jack Zoeller, Chairman and CEO. "Our primary goals were to identify
and address the Bank's asset quality issues and establish a new
culture oriented to shareholder value. These objectives have been
met. In the fourth quarter we turned our focus to restoring the
Bank's profitability. We launched a $40 million local
business loan campaign, hired two new commercial lenders, and
realigned our marketing and technology resources to better target
and serve the Bank's business borrowers," continued Mr.
Zoeller.
Review of the income statement
The Bank's net interest income decreased by $1.3 million, or
20%, to $5.1 million in 2011, compared to $6.4 million in 2010,
mainly due to the declining loan balances in 2011. The Bank's
net interest margin for 2011 also declined, decreasing 22 basis
points to 2.87% from 3.09% in 2010. The decline in net
interest margin was primarily the result of a decrease of $28.3
million in average loans, from $155.9 million in 2010 to $127.6
million in 2011.
Non-interest income declined $365,000 to $492,000 in 2011 from
$857,000 in 2010, mainly due to lower net gains realized on
available-for-sale securities, which declined $415,000 from
$544,000 in 2010 to $129,000 in 2011. Non-interest expense
totaled $7.3 million for 2011, a slight decline from $7.4 million
in 2010.
Review of the balance sheet
The Bank's total assets decreased $43.7 million, or 20.9%, to
$165.5 million at December 31, 2011 from December 31, 2010's total
of $209.2 million. The main element in the reduction of
assets was the $36.2 million, or 24.7%, decline in loans from
$146.6 million at December 31, 2010 to $110.3 million at December
31, 2010. The decline in loan balances was attributable to
loan pay downs, charge-offs and transfers to other real estate
owned in the absence of significant new lending, as new management
and lenders focused on addressing asset quality issues and
regulatory demands. Securities available for sale declined
$9.4 million or 26.8% to $25.6 million at December 31, 2011 from
$35 million at December 31, 2010.
On the liability side of the balance sheet, total deposits were
$147.2 million at December 31, 2011, down from $181.2 million at
year end 2010, a drop of $34 million, or 18.8%. Time deposits
balances fell $39.5 million from $140.2 million at December 31,
2010 to $100.7 million at December 31, 2011. The Bank paid
off a maturing $5 million borrowing in October. These
reductions in liabilities were intended to track with the Bank's
decline in assets while reducing the average rates paid on deposits
and other borrowings. Total liabilities were $152.8 million
and $192.2 million at December 31, 2011 and 2010,
respectively.
Stockholders' equity totaled $12.7 million at December 31, 2011,
a decline of $4.3 million when compared to the December 31, 2010
balance of $17 million. The Bank is considered well
capitalized by federal regulatory standards.
About Bank of Virginia
Bank of Virginia, a Virginia 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
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 Bank's periodic filings with the Board of
Governors of the Federal Reserve System, including the Bank's
annual report on Form 10-K as filed with the Board of Governors of
the Federal Reserve. 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 |
Condensed Balance
Sheets |
|
|
|
(dollars in thousands) |
December 31, |
December 31, |
Assets |
2011 |
2010 |
Cash and due from banks |
$ 4,152 |
$ 25,200 |
Federal funds sold and interest-bearing
deposits with banks |
22,544 |
484 |
Securities available for sale, at fair market
value |
25,578 |
34,956 |
Loans, net of allowance for loan losses of
$5,672 and $6,832 in 2011 and 2010, respectively |
104,662 |
139,740 |
Other real estate owned, net of valuation
allowance |
1,262 |
551 |
Other assets |
7,267 |
8,259 |
Total
assets |
$ 165,465 |
$ 209,190 |
Deposits |
|
|
Non-interest-bearing |
$ 16,833 |
$ 14,506 |
Savings and interest-bearing
demand |
29,686 |
26,489 |
Time Deposits |
100,722 |
140,246 |
Total
deposits |
147,241 |
181,241 |
FHLB Borrowings |
5,000 |
10,000 |
Accrued expenses and other liabilities |
557 |
970 |
Total
liabilities |
152,798 |
192,211 |
Stockholders' Equity |
|
|
Preferred stock, $5 par value, 5,000,000
shares authorized, none issued |
-- |
-- |
Common stock, $1 par value, 40,000,000 shares
authorized, 11,333,182 (5,000 unvested) and 11,328,182 shares
issued and outstanding in 2011 and 2010, respectively |
11,328 |
11,328 |
Additional paid-in capital |
24,622 |
24,611 |
Retained deficit |
(23,729) |
(19,278) |
Accumulated other comprehensive income |
446 |
318 |
Total stockholders'
equity |
12,667 |
16,979 |
Total liabilities and
stockholders' equity |
$ 165,465 |
$ 209,190 |
|
BANK OF
VIRGINIA |
Condensed Statements of
Operations |
For the Years Ended
December 31, 2011 and 2010 |
|
|
|
(dollars in thousands, except per share
data) |
2011 |
2010 |
Interest Income: |
|
|
Interest and fees on loans |
$ 7,497 |
$ 9,314 |
Investment securities |
718 |
1,501 |
Interest on federal funds sold
and deposits with banks |
47 |
17 |
Total interest income |
8,262 |
10,832 |
Interest Expense: |
|
|
Interest on deposits |
2,766 |
4,009 |
Interest on FHLB
borrowings |
392 |
443 |
Total interest expense |
3,158 |
4,452 |
Net Interest Income |
5,104 |
6,380 |
Provision for loan losses |
2,786 |
9,018 |
Net interest income (loss)
after provision |
2,318 |
(2,638) |
Non-interest Income: |
|
|
Net gain on sale of available
for sale securities |
129 |
544 |
Service charges and other fee
income |
363 |
313 |
Total non-interest income |
492 |
857 |
Non-interest Expense: |
|
|
Other operating expenses |
3,915 |
3,944 |
Total non-interest
expenses |
7,262 |
7,370 |
|
|
|
Net loss |
$ (4,452) |
$ (9,151) |
|
|
|
Loss per share, basic and diluted |
$ (0.39) |
$ (1.85) |
|
|
|
December 31, |
Capital ratios: |
2011 |
2010 |
Tier 1 leverage |
7.3 % |
7.9 % |
Tier 1 capital to risk-weighted
assets |
10.6 % |
10.9 % |
Total regulatory capital to
risk-weighted assets |
12.1 % |
12.2 % |
Total equity to total
assets |
7.7 % |
8.1 % |
Credit quality ratios: |
|
|
Allowance for loan losses to
total loans |
5.14 % |
4.66 % |
Nonperforming loans to total
loans |
8.05 % |
4.72 % |
Nonperforming assets to total
assets |
6.13 % |
5.09 % |
CONTACT: Jack Zoeller,
Chairman and CEO, 804-763-1333
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