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
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