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Cordia Bancorp Inc. Reports Fourth Quarter Results

MIDLOTHIAN, Va., March 03, 2016 (GLOBE NEWSWIRE) -- 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

Source:Cordia Bancorp

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