For the quarter ended June 30, 2011, the Bank reported a net loss of $1.3 million, or $(.12) per share, compared with a net loss of $264,000 or $(.06) per share for the quarter ended June 30, 2010. The loss in 2011 was driven primarily by a $1.1 million provision for loan losses as new management nears completion of its total credit evaluation of the loan portfolio. A net loss of $3.1 million, or $(.27) per share was realized for the six-month period ended June 30, 2011, versus a net loss of $622,000, or $(.14) per share for the same period last year. The Bank remains well capitalized with a total risk based capital ratio of 11.8%.
"While we found it appropriate to increase our provision for loan losses, we are optimistic about the lending outlook at the Bank. In the second quarter of 2011 we added a new Chief Operating Officer, Chief Credit Officer, and Senior Vice President of Special Assets that significantly strengthened the Bank's credit risk management and positioned us to prudently and confidently return to a mode of normal lending growth. We believe that we now have one of the top credit and lending teams among all community banks in the region," commented Jack Zoeller, Chairman and CEO.
Review of the balance sheet
The Bank's total assets decreased $22.0 million to $187.2 million at June 30, 2011, compared to $209.2 million at December 31, 2010. Net loans declined $21.7 million, or 15.5%, from $139.7 million at December 31, 2010 to $118.1 million at June 30, 2011. The decline in loan balances was attributable to additional loan charge-offs and reserves as well as efforts to reduce the exposure to non-owner occupied commercial real estate and construction loans. Securities available for sale declined $4.5 million to $30.4 million from $35.0 million at December 31, 2010. Substantially offsetting the decrease in loans and securities was a reduction of $24.0 million, or 17.1%, in time deposits, which declined from a balance of $140.2 million at December 31, 2010 to $116.3 million at June 30, 2011.
During the first six months of 2011, the level of nonperforming assets increased 42.0% from $7.5 million at December 31, 2010, to $10.6 million at June 30, 2011. Nonaccrual loans total $8.6 million, or 6.8% of total loans, at June 30, 2011, compared to $6.9 million, or 4.7% of total loans at December 31, 2010. Impaired loans increased $5.6 million, or 25.1% from $22.3 million at December 31, 2010 to $27.9 million at June 30, 2011. The Bank reported charge offs, net of recoveries, of $582,000, or .46% of total loans, for the first six months of 2011, compared to net charge offs of $620,000 for the same period in 2010. Loans past due 30 days or more totaled $7.5 million, or 5.9% of total loans, and $7.0 million, or 4.8% of total loans, at June 30, 2011 and December 31, 2010, respectively.
About Bank of Virginia
Bank of Virginia, a Virginia 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.
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 and CEO, 804-763-1333
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here