MIDLOTHIAN, Va., March 20, 2013 (GLOBE NEWSWIRE) -- Bank of Virginia (the "Bank") (Nasdaq:BOVA) (www.bankofva.com), announced it has initiated two high-quality, low-risk programs involving U.S. agency-backed loans to enhance the Bank's organic growth strategy. Bank of Virginia has committed to a $60 million participation in residential mortgage loans packaged primarily for sale to Government Sponsored Enterprises, such as Fannie Mae and Ginnie Mae; and arranged the purchase of a $23 million rehabilitated student loan portfolio backed by the federal government's guarantee. The Bank intends to hold the student loans to maturity.
The initiatives reflect Bank of Virginia's strategy to align with nationally recognized counter-parties in support of each program. In residential mortgages, the Bank is partnering with Stonegate Mortgage Corporation, one of the nation's largest and fastest growing independently-owned mortgage lenders and servicers. In student loans, the Bank is partnering with GradCapital, LLC, which advises universities and financial institutions on educational financial solutions and Xerox Education Services, a premier servicer of student loan portfolios.
"While Bank of Virginia remains focused on core loan growth in our local Virginia markets, we are pleased to announce these two extraordinary initiatives that will enhance the Bank's earnings, credit quality and portfolio diversity," said Jack Zoeller, Chairman and CEO of Bank of Virginia. "We are being opportunistic in leveraging the depth and experience of the Bank's board of directors and our credit and lending team led by President Richard Dickinson. We continue to seek high quality loans to support our targeted growth of approximately $100 million in assets beginning in late 2012."
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 an Equal Housing Lender.
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 Bank's periodic filings with the Board of Governors of the Federal Reserve System, including the Bank's annual report on Form 10-K as filed with the Board of Governors of the Federal Reserve. 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.
CONTACT: Jack Zoeller, Chairman & CEO, 804-763-1333Source:Bank of Virginia