BVA Cordia Bancorp Inc.

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