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Cordia Bancorp Inc. Reports First Quarter 2015 Profit

MIDLOTHIAN, Va., May 7, 2015 (GLOBE NEWSWIRE) -- Cordia Bancorp Inc. ("Cordia") (Nasdaq:BVA), parent company of Bank of Virginia, reported net income of $351,000, or $0.05 per share, for the first quarter of 2015, compared to a net loss of $284,000, $(0.10) per share, for the first quarter of 2014.

Highlights

  • 28% year-over-year growth in loans, excluding guaranteed student loans
  • 16% year-over-year growth in total assets
  • Net interest income up 6%, compared to the first quarter of 2014, and 10%, net of acquisition accounting adjustments
  • Nonperforming assets decreased to 1.16% of total assets from 1.70% for the first quarter of 2014
  • CordiaGrad, an online lending platform to refinance student loans, launched in the fourth quarter of 2014
  • $340,000 net recovery of loan losses in the first quarter 2015

Chief Executive Officer Jack Zoeller stated, "We continue to grow the company to put to work the $15.4 million of equity capital we raised in 2014. Commercial loan growth continues at exceptional levels. We are also very excited about CordiaGrad, our online student loan refinancing platform, which gives us a new lending channel unique among community banks in Virginia."

Balance Sheet Activity

  • Asset Growth. Total assets increased to $324.5 million at March 31, 2015, compared to $318.6 million at December 31, 2014 and $280.3 million at March 31, 2014. During the first quarter of 2015, loans held for investment increased 3%, or $6.8 million. Of this amount, organic originations accounted for $10.2 million while purchased guaranteed student loans decreased $3.4 million. In addition, investment securities decreased $12.3 million, while cash and cash equivalents increased $11.3 million.
  • Deposit Growth. Total deposits were unchanged at $265.6 million at March 31, 2015, and December 31, 2014. Year-over-year, total deposits increased 13%, from $235.0 million at March 31, 2014.
  • Asset Quality. Asset quality continued to improve, with non-performing assets decreasing to $3.8 million, or 1.16% of total assets, at March 31, 2015, from $3.9 million, or 1.21% of total assets, at December 31, 2014, and $4.7 million, or 1.70%, at March 31, 2014.
  • Tangible Book Value. Tangible book value per share was $4.22 at March 31, 2015, up from $4.16 at December 31, 2014.

Operating Results

Three months ended March 31, 2015 compared to the three months ended March 31, 2014

  • Net income for the quarter ended March 31, 2015 was $351,000 compared to a net loss of $284,000 for the prior year first quarter.
  • Net interest income was $2.01 million for the first quarter of 2015, compared to $1.90 million for the first quarter of 2014.
  • Net interest income, net of acquisition accounting adjustments, increased $185,000, or 10.3%.
  • Net interest margin was 2.69% and 3.39% for the first quarter of 2015 and 2014, respectively. Adjusting for the impact of acquisition accounting, net interest margin was 2.67% compared to 3.22% for the 2014 period.
  • The provision for loan losses was a recovery of $340,000 in the first quarter of 2015 compared to a provision of $20,000 in the prior year quarter.
  • Noninterest income increased to $213 thousand from $123 thousand in the prior year quarter due primarily to $71 thousand in gain on the sale of securities and loans.
  • Noninterest expense decreased $70 thousand to $2.21 million for the first quarter of 2015, compared to $2.28 million for the first quarter of 2014.

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. CordiaGrad provides student loan refinancing services through two offices in Midlothian, VA and Washington, DC.

In late 2014 the Bank launched CordiaGrad, a student loan refinancing program aimed at high-achieving student loan borrowers. CordiaGrad seeks to provide significant rate savings to holders of federal, private, and parent student loans.

For more information about Cordia Bancorp, Bank of Virginia and CordiaGrad, visit our websites: www.cordiabancorp.com, www.bankofva.com and www.cordiagrad.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) 2015 2014 2014 2014 2014
Assets
Cash and due from banks $ 9,602 $ 5,484 $ 5,789 $ 5,332 $ 10,499
Fed funds sold and Interest-bearing deposits 23,495 16,363 6,131 9,843 16,839
Total cash and cash equivalents 33,097 21,847 11,920 15,175 27,338
Securities available for sale, at fair value 41,411 53,483 54,581 45,835 24,464
Securities held to maturity, at cost 20,132 20,716 21,263 21,839 14,500
Restricted securities 2,405 2,092 1,525 1,525 1,529
Loans held for sale 117 -- -- -- --
Loans held for investment:
Commercial real estate 109,734 103,253 92,300 90,909 85,084
Commercial and industrial 24,057 24,153 25,376 24,605 22,118
Guaranteed student loans 61,441 64,870 67,421 70,624 80,966
Consumer and other 24,521 20,683 19,221 18,147 16,914
Total loans held for investment 219,753 212,959 204,318 204,285 205,082
Less: Allowance for loan losses (1,102) (1,089) (1,226) (1,407) (1,504)
Net loans held for investment 218,651 211,870 203,092 202,878 203,578
Premises and equipment, net 4,402 4,432 4,496 4,510 4,430
Accrued interest receivable 1,986 2,040 1,902 1,830 2,177
Other real estate owned, net of valuation allowance 1,647 1,641 1,543 1,543 1,543
Other assets 696 479 485 390 697
Total assets $ 324,544 $ 318,600 $ 300,807 $ 295,525 $ 280,256
Liabilities and stockholders' equity
Non-interest bearing deposits 27,628 30,709 24,490 24,890 21,649
Savings and interest bearing demand deposits 83,077 83,339 78,779 75,660 74,818
Time deposits 154,920 151,555 149,679 144,643 138,561
Total deposits 265,625 265,603 252,948 245,193 235,028
Accrued expenses and other liabilities 1,061 861 877 3,419 12,202
FHLB borrowings 30,000 25,000 20,000 20,000 20,000
Total liabilities 296,686 291,464 273,825 268,612 267,230
Common stock - voting 51 51 51 51 28
Common stock - nonvoting 14 14 14 14 --
Additional paid-in-capital 33,011 32,956 32,895 32,847 18,672
Retained deficit (5,066) (5,417) (5,477) (5,559) (5,289)
Accumulated other comprehensive loss (152) (468) (501) (440) (385)
Total stockholders' equity 27,858 27,136 26,982 26,913 13,026
Total liabilities and stockholders' equity $ 324,544 $ 318,600 $ 300,807 $ 295,525 $ 280,256
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) 2015 2014 2014 2014 2014
Interest Income
Interest and fees on loans $ 2,183 $ 2,247 $ 2,275 $ 2,252 $ 2,149
Investment securities 363 405 346 311 207
Interest on federal funds sold and deposits with banks 7 6 4 9 6
Total interest income 2,553 2,658 2,625 2,572 2,362
Interest Expense
Interest on deposits 454 451 443 441 426
Interest on FHLB Borrowings 89 76 57 56 41
Total interest expense 543 527 500 497 467
Net interest income 2,010 2,131 2,125 2,075 1,895
Provision for (recovery of) loan losses (340) 182 (106) 209 20
Net interest income after provision for (recovery of) loan losses 2,350 1,949 2,231 1,866 1,875
Non-interest income
Service charges on deposit accounts 30 34 44 19 26
Net gain (loss) on sale of available for sale securities 114 116 (3) -- 64
Other fee income 69 50 41 43 33
Total non-interest income 213 200 82 62 123
Non-interest expense
Salaries and employee benefits 1,280 1,094 1,244 1,102 1,406
Professional services 84 104 92 125 106
Occupancy 153 139 139 136 151
Data processing and communications 198 184 206 160 142
FDIC assessment and bank fees 90 96 99 96 94
Bank franchise taxes 49 23 23 27 29
Student loan servicing fees and other loan expenses 146 191 144 210 126
Other real estate expenses 6 18 6 17 5
Supplies and equipment 73 78 82 83 75
Insurance 20 42 40 44 41
Director's fees 26 50 46 75 16
Marketing and business development 18 21 15 9 6
Other operating expenses 69 49 95 114 85
Total non-interest expense 2,212 2,089 2,231 2,198 2,282
Net income (loss) $ 351 $ 60 $ 82 $ (270) $ (284)
Earnings (loss) per share, basic and diluted $ 0.05 $ 0.01 $ 0.01 $ (0.09) $ (0.10)
Weighted average shares outstanding, basic 6,559,217 6,504,106 6,504,106 3,033,300 2,788,302
Weighted average shares outstanding, diluted 6,559,217 6,504,106 6,504,106 3,033,300 2,788,302
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) 2015 2014 2014 2014 2014
Results of Operations
Interest income $ 2,553 $ 2,658 $ 2,625 $ 2,572 $ 2,362
Interest expense 543 527 500 497 467
Net interest income 2,010 2,131 2,125 2,075 1,895
Provision for (recovery of) loan losses (340) 182 (106) 209 20
Net interest income after provision for (recovery of) loan losses 2,350 1,949 2,231 1,866 1,875
Non-interest income 213 200 82 62 123
Non-interest expense 2,212 2,089 2,231 2,198 2,282
Net income (loss) $ 351 $ 60 $ 82 $ (270) $ (284)
Earnings (loss) per share, basics and diluted $ 0.05 $ 0.01 $ 0.01 $ (0.09) $ (0.10)
Weighted average shares outstanding, basic 6,559,217 6,504,106 6,504,106 3,033,300 2,788,302
Weighted average shares outstanding, diluted 6,559,217 6,504,106 6,504,106 3,033,300 2,788,302
Performance Ratios
Return on average assets 0.44% 0.08% 0.11% -0.38% -0.48%
Return on average equity 5.20% 0.88% 1.21% -4.21% -8.64%
Return on average tangible equity 5.22% 0.88% 1.21% -4.23% -8.73%
Efficiency ratio 99.51% 89.62% 101.09% 102.85% 113.08%
Yields and Rates
Yield on loans 4.16% 4.29% 4.47% 4.40% 4.95%
Yield on securities 2.07% 2.04% 1.94% 2.27% 2.11%
Yield on interest earning assets 3.42% 3.53% 3.72% 3.78% 4.22%
Cost of interest bearing deposits 0.78% 0.76% 0.78% 0.82% 0.89%
Cost of total deposits 0.70% 0.68% 0.71% 0.74% 0.80%
Cost of borrowings 1.25% 1.25% 1.13% 1.12% 1.64%
Cost of interest bearing liabilities 0.83% 0.81% 0.81% 0.85% 0.93%
Interest rate spread 2.59% 2.72% 2.91% 2.94% 3.29%
Net interest margin 2.69% 2.83% 3.01% 3.05% 3.39%
Capital
Total equity to total assets 8.58% 8.52% 8.97% 9.11% 4.65%
Tangible equity to total assets 8.56% 8.49% 8.94% 9.07% 4.60%
Book value per share 4.23 4.17 4.15 4.14 4.67
Tangible book value per share 4.22 4.16 4.13 4.12 4.63
Common shares outstanding 6,584,106 6,504,106 6,504,106 6,504,106 2,788,302
Average Balances
Loans $ 212,566 $ 207,833 $ 201,953 $ 205,104 $ 176,161
Securities 71,198 78,590 70,848 54,904 39,747
Earning assets 302,481 298,712 279,876 272,733 226,968
Total assets 321,455 315,167 295,834 286,525 241,660
Interest bearing deposits 235,388 234,953 223,927 215,856 193,952
Total deposits 264,434 262,947 248,087 238,416 215,721
FHLB borrowings 28,778 24,185 20,000 20,000 10,111
Interest bearing liabilities 264,166 259,138 243,927 235,856 204,057
Total equity 27,353 27,198 26,918 25,727 13,332
Tangible equity 27,254 27,089 26,800 25,601 13,196
Asset Quality
Net charge-offs/(recoveries) (353) 319 75 306 5
Net charge-off rate -0.67% 0.61% 0.15% 0.60% 0.01%
Non-performing loans 2,108 2,221 1,323 2,572 3,225
Non-performing assets 3,755 3,862 2,866 4,115 4,768
Allowance for loan losses 1,102 1,089 1,226 1,407 1,504
Non-performing loans as a % of total loans held for investment 0.96% 1.04% 0.65% 1.26% 1.57%
Non-performing assets as a % of total assets 1.16% 1.21% 0.95% 1.39% 1.70%
Allowance for loan losses as a % of total loans held for investment 0.50% 0.51% 0.60% 0.69% 0.73%
Allowance for loan losses as a % of non-performing loans 52.28% 49.03% 92.67% 54.70% 46.64%
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) 2015 2014 2014 2014 2014
Tangible Equity and Tangible Assets (Period End)
Total shareholders' equity (GAAP) $ 27,858 $ 27,136 $ 26,982 $ 26,913 $ 13,026
Less: intangible assets 95 104 112 121 130
Tangible Equity (non-GAAP) $ 27,763 $ 27,032 $ 26,870 $ 26,792 $ 12,896
Total assets (GAAP) $ 324,544 $ 318,600 $ 300,807 $ 295,525 $ 280,256
Less: intangible assets 95 104 112 121 130
Tangible assets (non-GAAP) $ 324,449 $ 318,496 $ 300,695 $ 295,404 $ 280,126
Total equity to total assets (GAAP) 8.58% 8.52% 8.97% 9.11% 4.65%
Book value per share (GAAP) $ 4.23 $ 4.17 $ 4.15 $ 4.14 $ 4.67
Tangible equity to tangible assets (non-GAAP) 8.56% 8.49% 8.94% 9.07% 4.60%
Tangible book value per share (non-GAAP) $ 4.22 $ 4.16 $ 4.13 $ 4.12 $ 4.63
Tangible Equity and Tangible Assets (Average)
Total shareholders' equity (GAAP) $ 27,353 $ 27,198 $ 26,918 $ 25,727 $ 13,332
Less: intangible assets 99 109 118 126 136
Tangible Equity (non-GAAP) $ 27,254 $ 27,089 $ 26,800 $ 25,601 $ 13,196
Total assets (GAAP) 321,455 315,167 295,834 286,525 241,660
Less: intangible assets 99 109 118 126 136
Tangible assets (non-GAAP) $ 321,356 $ 315,058 $ 295,716 $ 286,399 $ 241,524
Total equity to total assets (GAAP) 8.51% 8.63% 9.10% 8.98% 5.52%
Book value per share (GAAP) $ 4.15 $ 4.18 $ 4.14 $ 3.95 $ 4.78
Tangible equity to tangible assets (non-GAAP) 8.48% 8.60% 9.06% 8.94% 5.46%
Tangible book value per share (non-GAAP) $ 4.14 $ 4.16 $ 4.12 $ 3.94 $ 4.73

CONTACT: FOR MORE INFORMATION CONTACT: Mark Severson, CFO, Cordia Bancorp Inc. 804-763-1322

Source:Cordia Bancorp