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Cordia Bancorp Inc. Reports Third Quarter Profit

MIDLOTHIAN, Va., Nov. 12, 2015 (GLOBE NEWSWIRE) -- Cordia Bancorp Inc. ("Cordia") (NASDAQ:BVA), parent company of Bank of Virginia, reported net income of $130,000 or $0.02 per share for the third quarter of 2015, compared to net income of $82,000, or $0.01 per share for the third quarter of 2014. For the first nine months of 2015, net income was $717,000 or $0.11 per share compared to a net loss of $472,000, or $(0.11) per share, for the same period of 2014.

Highlights

  • Hiring of Ed Barham, former CEO of StellarOne, as President & CEO of Bank of Virginia in August 2015
  • 26% year-over-year growth in commercial and consumer loans
  • 16% year-over-year growth in total assets
  • 14% year-over-year growth in total deposits
  • Net interest income increased $336,000, or 5.7%, for the nine months ended September 30, 2015 versus 2014, net of acquisition accounting adjustments.

Chief Executive Officer Jack Zoeller stated, "We are fortunate to have such a talented and highly successful executive as Ed Barham join our team. We are also excited about the Company's continued growth in assets and improvement in earnings. We have achieved exceptional growth in our loan portfolio, excellent asset quality and a meaningful reduction in non-interest expense in 2015."

Balance Sheet Activity

  • Asset Growth. Total assets increased to $348.0 million at September 30, 2015, compared to $318.6 million at December 31, 2014. Year-over-year, total assets increased 16%, from $300.8 million at September 30, 2014. During the nine months ended September 30, 2015, loans held for investment increased 7%, or $15.8 million. Of this amount, organic originations accounted for $24.6 million while purchased guaranteed student loans decreased $8.8 million.
  • Deposit Growth. Total deposits at September 30, 2015, were $289.3 million, an increase of $23.7 million from $265.6 million at December 31, 2014. Year-over-year, total deposits increased 14%, from $252.9 million at September 30, 2014.
  • Asset Quality. Non-performing assets were $3.7 million, or 1.07% of total assets, at September 30, 2015, compared to $3.9 million, or 1.21% of total assets, at December 31, 2014, and $2.9 million, or 0.95%, at September 30, 2014.
  • Tangible Book Value. Tangible book value per share was $4.27 at September 30, 2015 compared to $4.16 at December 31, 2014.

Operating Results

Three months ended September 30, 2015 compared to the three months ended September 30, 2014

  • Net income for the quarter ended September 30, 2015 was $130,000 compared to net income of $82,000 for the prior year third quarter.
  • Net interest income was $2.15 million for the third quarter of 2015, compared to $2.13 million for the third quarter of 2014.
  • Net interest income, net of acquisition accounting adjustments, increased $122,000, or 6.1%.
  • Net interest margin was 2.61% and 3.01% for the third quarter of 2015 and 2014, respectively. Adjusting for the impact of acquisition accounting, net interest margin was 2.58% for the 2015 quarter compared to 2.95% for the 2014 quarter.
  • The provision for loan losses was a recovery of $53,000 in the third quarter of 2015 compared to a recovery of $106,000 in the prior year quarter.
  • Noninterest income increased to $115,000 from $82,000 in the prior year quarter.
  • Noninterest expense decreased $45,000 to $2.19 million for the third quarter of 2015, compared to $2.23 million for the third quarter of 2014.

Nine months ended September 30, 2015 compared to the nine months ended September 30, 2014

  • Net income for the first nine months of 2015 was $717,000 compared to a net loss of $472,000 for the first nine months of 2014.
  • Net interest income was $6.31 million for the 2015 period, compared to $6.10 million for the 2014 period.
  • Net interest income, net of acquisition accounting adjustments, increased $336,000, or 5.7%.
  • Net interest margin was 2.69% and 3.13% for the first nine months of 2015 and 2014, respectively. Adjusting for the impact of acquisition accounting, net interest margin was 2.65% for the 2015 period compared to 3.02% for the 2014 period.
  • The provision for loan losses was a recovery of $330,000 for the first nine months of 2015 compared to a provision of $123,000 for the first nine months of 2014.
  • Noninterest income increased to $425,000 from $267,000 in the prior year period due primarily to an increase in gains on the sale of securities and loans of $75,000 and gains on the sales of loans held for sale of $36,000 in the 2015 period.
  • Noninterest expense decreased $363,000 to $6.35 million for the first nine months of 2015, compared to $6.71 million for the first nine months of 2014 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 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.

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)
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
(Dollars in thousands, except per share data) 2015 2015 2015 2014 2014
Assets
Cash and due from banks $ 9,437 $ 11,771 $ 9,602 $ 5,484 $ 5,789
Fed funds sold and Interest-bearing deposits 15,970 7,593 23,495 16,363 6,131
Total cash and cash equivalents 25,407 19,364 33,097 21,847 11,920
Securities available for sale, at fair value 48,721 58,445 41,411 53,483 54,581
Securities held to maturity, at cost 26,281 27,087 20,132 20,716 21,263
Restricted securities 2,330 2,331 2,405 2,092 1,525
Loans held for sale 109 96 117 -- --
Loans held for investment:
Commercial real estate 106,335 111,180 109,734 103,253 92,300
Commercial and industrial 26,751 27,919 24,057 24,153 25,376
Guaranteed student loans 56,072 57,900 61,441 64,870 67,421
Consumer and other 39,607 28,865 24,521 20,683 19,221
Total loans held for investment 228,765 225,864 219,753 212,959 204,318
Less: Allowance for loan losses (903) (990) (1,102) (1,089) (1,226)
Net loans held for investment 227,862 224,874 218,651 211,870 203,092
Premises and equipment, net 6,034 6,083 4,402 4,432 4,496
Accrued interest receivable 1,924 2,033 1,986 2,040 1,902
Other real estate owned, net of valuation allowance 1,761 1,769 1,647 1,641 1,543
Other assets 7,555 704 696 479 485
Total assets $ 347,984 $ 342,786 $ 324,544 $ 318,600 $ 300,807
Liabilities and stockholders' equity
Non-interest bearing deposits 28,362 31,239 27,628 30,709 24,490
Savings and interest bearing demand deposits 104,007 100,596 83,077 83,339 78,779
Time deposits 156,939 152,800 154,920 151,555 149,679
Total deposits 289,308 284,635 265,625 265,603 252,948
Accrued expenses and other liabilities 553 464 1,061 861 877
FHLB borrowings 30,000 30,000 30,000 25,000 20,000
Total liabilities 319,861 315,099 296,686 291,464 273,825
Common stock - voting 50 51 51 51 51
Common stock - nonvoting 14 14 14 14 14
Additional paid-in-capital 33,044 33,061 33,011 32,956 32,895
Retained deficit (4,700) (4,830) (5,066) (5,417) (5,477)
Accumulated other comprehensive loss (285) (609) (152) (468) (501)
Total stockholders' equity 28,123 27,687 27,858 27,136 26,982
Total liabilities and stockholders' equity $ 347,984 $ 342,786 $ 324,544 $ 318,600 $ 300,807
Cordia Bancorp
Consolidated Statements of Income (unaudited)
Three Months Ended Nine Months Ended
Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30,
(Dollars in thousands, except per share data) 2015 2015 2015 2014 2014 2015 2014
Interest Income
Interest and fees on loans $ 2,294 $ 2,327 $ 2,183 $ 2,247 $ 2,275 $ 6,804 $ 6,676
Investment securities 446 383 363 405 346 1,192 864
Interest on federal funds sold and deposits with banks 9 5 7 6 4 21 19
Total interest income 2,749 2,715 2,553 2,658 2,625 8,017 7,559
Interest Expense
Interest on deposits 506 470 454 451 443 1,430 1,310
Interest on FHLB Borrowings 95 93 89 76 57 277 154
Total interest expense 601 563 543 527 500 1,707 1,464
Net interest income 2,148 2,152 2,010 2,131 2,125 6,310 6,095
Provision for (recovery of) loan losses (53) 63 (340) 182 (106) (330) 123
Net interest income after provision for (recovery of) loan losses 2,201 2,089 2,350 1,949 2,231 6,640 5,972
Non-interest income
Service charges on deposit accounts 35 30 30 34 44 95 89
Net gain (loss) on sale of available for sale securities 22 -- 114 116 (3) 136 61
Net gain (loss) on sale of loans held for sale 6 9 21 (4) -- 36 --
Other fee income 52 58 48 54 41 158 117
Total non-interest income 115 97 213 200 82 425 267
Non-interest expense
Salaries and employee benefits 1,085 1,082 1,280 1,094 1,244 3,447 3,752
Professional services 108 100 84 104 92 292 323
Occupancy 149 159 153 139 139 461 426
Reversal of occupancy fair value discount -- (225) -- -- -- (225) --
Data processing and communications 233 206 198 184 206 637 508
FDIC assessment and bank fees 88 92 90 96 99 270 289
Bank franchise taxes 49 49 49 23 23 147 79
Student loan servicing fees and other loan expenses 174 208 146 191 144 528 480
Other real estate expenses 26 45 6 18 6 77 28
Supplies and equipment 71 70 73 78 82 214 240
Insurance 20 19 20 42 40 59 125
Director's fees 28 21 26 50 46 75 137
Marketing and business development 64 31 18 21 15 113 30
Other operating expenses 91 93 69 49 95 253 294
Total non-interest expense 2,186 1,950 2,212 2,089 2,231 6,348 6,711
Net income (loss) $ 130 $ 236 $ 351 $ 60 $ 82 717 (472)
Earnings (loss) per share, basic and diluted $ 0.02 $ 0.04 $ 0.05 $ 0.01 $ 0.01 $ 0.11 $ (0.11)
Weighted average shares outstanding, basic 6,572,278 6,583,848 6,559,217 6,504,106 6,504,106 6,571,829 4,122,180
Weighted average shares outstanding, diluted 6,572,278 6,583,848 6,559,217 6,504,106 6,504,106 6,571,829 4,122,180
Cordia Bancorp
Consolidated Financial Highlights (unaudited)
As of and for the Three Months Ended Nine Months Ended
Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30,
(Dollars in thousands, except per share data) 2015 2015 2015 2014 2014 2015 2014
Results of Operations
Interest income $ 2,749 $ 2,715 $ 2,553 $ 2,658 $ 2,625 $ 8,017 $ 7,559
Interest expense 601 563 543 527 500 1,707 1,464
Net interest income 2,148 2,152 2,010 2,131 2,125 6,310 6,095
Provision for (recovery of) loan losses (53) 63 (340) 182 (106) (330) 123
Net interest income after provision for (recovery of) loan losses 2,201 2,089 2,350 1,949 2,231 6,640 5,972
Non-interest income 115 97 213 200 82 425 267
Non-interest expense 2,186 1,950 2,212 2,089 2,231 6,348 6,711
Net income (loss) $ 130 $ 236 $ 351 $ 60 $ 82 $ 717 $ (472)
Earnings (loss) per share, basics and diluted $ 0.02 $ 0.04 $ 0.05 $ 0.01 $ 0.01 $ 0.11 $ (0.11)
Weighted average shares outstanding, basic 6,572,278 6,583,848 6,559,217 6,504,106 6,504,106 6,571,829 4,122,180
Weighted average shares outstanding, diluted 6,572,278 6,583,848 6,559,217 6,504,106 6,504,106 6,571,829 4,122,180
Performance Ratios
Return on average assets 0.15% 0.29% 0.44% 0.08% 0.11% 0.29% -0.23%
Return on average equity 1.85% 3.40% 5.20% 0.88% 1.21% 3.46% -2.86%
Return on average tangible equity 1.85% 3.41% 5.22% 0.88% 1.21% 3.47% -2.88%
Efficiency ratio 96.60% 86.71% 99.51% 89.62% 101.09% 94.25% 105.49%
Yields and Rates
Yield on loans 4.09% 4.18% 4.16% 4.29% 4.47% 4.15% 4.58%
Yield on securities 2.06% 2.12% 2.07% 2.04% 1.94% 2.08% 2.09%
Yield on interest earning assets 3.34% 3.51% 3.42% 3.53% 3.72% 3.42% 3.88%
Cost of interest bearing deposits 0.77% 0.79% 0.78% 0.76% 0.78% 0.78% 0.83%
Cost of total deposits 0.70% 0.71% 0.70% 0.68% 0.71% 0.70% 0.75%
Cost of borrowings 1.26% 1.19% 1.25% 1.25% 1.13% 1.23% 1.23%
Cost of interest bearing liabilities 0.82% 0.84% 0.83% 0.81% 0.81% 0.83% 0.86%
Interest rate spread 2.51% 2.67% 2.59% 2.72% 2.91% 2.59% 3.02%
Net interest margin 2.61% 2.78% 2.69% 2.83% 3.01% 2.69% 3.13%
Capital
Total equity to total assets 8.08% 8.08% 8.58% 8.52% 8.97% 8.08% 8.97%
Tangible equity to total assets 8.06% 8.05% 8.56% 8.49% 8.94% 8.06% 8.94%
Book value per share 4.29 4.21 4.23 4.17 4.15 4.29 4.15
Tangible book value per share 4.27 4.19 4.22 4.16 4.13 4.27 4.13
Common shares outstanding 6,562,906 6,582,806 6,584,106 6,504,106 6,504,106 6,562,906 6,504,106
Average Balances
Loans $ 222,371 $ 223,286 $ 212,566 $ 207,833 $ 201,953 $ 219,443 194,990
Securities 86,089 72,391 71,198 78,590 70,848 76,614 55,280
Earning assets 326,904 310,680 302,481 298,712 279,876 313,444 260,542
Total assets 346,917 327,439 321,455 315,167 295,834 332,030 274,871
Interest bearing deposits 260,276 238,715 235,388 234,953 223,927 244,881 211,352
Total deposits 288,455 267,356 264,434 262,947 248,087 273,500 234,183
FHLB borrowings 30,000 31,346 28,778 24,185 20,000 30,046 16,740
Interest bearing liabilities 290,276 270,061 264,166 259,138 243,927 274,927 228,092
Total equity 27,938 27,835 27,353 27,198 26,918 27,710 22,042
Tangible equity 27,857 27,745 27,254 27,089 26,800 27,620 21,916
Asset Quality
Net charge-offs/(recoveries) 34 175 (353) 319 75 (144) 386
Net charge-off rate 0.06% 0.31% -0.67% 0.61% 0.15% -0.09% 0.20%
Non-performing loans 1,975 1,918 2,108 2,221 1,323 1,975 1,323
Non-performing assets 3,736 3,687 3,755 3,862 2,866 3,736 2,866
Allowance for loan losses 903 990 1,102 1,089 1,226 903 1,226
Non-performing loans as a % of total loans held for investment 0.86% 0.85% 0.96% 1.04% 0.65% 0.86% 0.65%
Non-performing assets as a % of total assets 1.07% 1.08% 1.16% 1.21% 0.95% 1.07% 0.95%
Allowance for loan losses as a % of total loans held for investment 0.39% 0.44% 0.50% 0.51% 0.60% 0.39% 0.60%
Allowance for loan losses as a % of non-performing loans 45.72% 51.62% 52.28% 49.03% 92.67% 45.72% 92.67%
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 Nine Months Ended
Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30,
(Dollars in thousands, except per share data) 2015 2015 2015 2014 2014 2015 2014
Tangible Equity and Tangible Assets (Period End)
Total shareholders' equity (GAAP) $ 28,123 $ 27,687 $ 27,858 $ 27,136 $ 26,982 $ 28,123 $ 26,982
Less: intangible assets 77 86 95 104 112 77 112
Tangible Equity (non-GAAP) $ 28,046 $ 27,601 $ 27,763 $ 27,032 $ 26,870 $ 28,046 $ 26,870
Total assets (GAAP) $ 347,984 $ 342,786 $ 324,544 $ 318,600 $ 300,807 $ 347,984 $ 300,807
Less: intangible assets 77 86 95 104 112 77 112
Tangible assets (non-GAAP) $ 347,907 $ 342,700 $ 324,449 $ 318,496 $ 300,695 $ 347,907 $ 300,695
--
Total equity to total assets (GAAP) 8.08% 8.08% 8.58% 8.52% 8.97% 8.08% 8.97%
Book value per share (GAAP) $ 4.29 $ 4.21 $ 4.23 $ 4.17 $ 4.15 $ 4.29 $ 4.15
Tangible equity to tangible assets (non-GAAP) 8.06% 8.05% 8.56% 8.49% 8.94% 8.06% 8.94%
Tangible book value per share (non-GAAP) $ 4.27 $ 4.19 $ 4.22 $ 4.16 $ 4.13 $ 4.27 $ 4.13
Tangible Equity and Tangible Assets (Average)
Total shareholders' equity (GAAP) $ 27,938 $ 27,835 $ 27,353 $ 27,198 $ 26,918 $ 27,710 $ 22,042
Less: intangible assets 81 90 99 109 118 90 126
Tangible Equity (non-GAAP) $ 27,857 $ 27,745 $ 27,254 $ 27,089 $ 26,800 $ 27,620 $ 21,916
Total assets (GAAP) 346,917 327,439 321,455 315,167 295,834 332,030 274,871
Less: intangible assets 81 90 99 109 118 90 126
Tangible assets (non-GAAP) $ 346,836 $ 327,349 $ 321,356 $ 315,058 $ 295,716 $ 331,940 $ 274,745
Total equity to total assets (GAAP) 8.05% 8.50% 8.51% 8.63% 9.10% 8.35% 8.02%
Book value per share (GAAP) $ 4.24 $ 4.23 $ 4.15 $ 4.18 $ 4.14 $ 4.22 $ 3.39
Tangible equity to tangible assets (non-GAAP) 8.03% 8.48% 8.48% 8.60% 9.06% 8.32% 7.98%
Tangible book value per share (non-GAAP) $ 4.23 $ 4.21 $ 4.14 $ 4.16 $ 4.12 $ 4.21 $ 3.37

CONTACT: Mark Severson, EVP & CFO, Cordia Bancorp Inc. 804-763-1322

Source:Cordia Bancorp