MIDLOTHIAN, Va., Nov. 9, 2011 (GLOBE NEWSWIRE) -- Bank of Virginia (the "Bank") (Nasdaq:BOVA) (www.bankofva.com), announced financial results for the third quarter of 2011 and the launch of a new $40 million commercial loan effort targeted to local businesses.
"Since the investment of $10 million by Cordia Bancorp in December 2010, we have focused our efforts on addressing the Bank's asset quality issues. Our new, highly experienced credit team has substantially completed its assessment of the loan portfolio and is confident that the Bank is well reserved," commented Jack Zoeller, Chairman and CEO. "Our next priorities will be controlled loan growth and a return to profitability."
"This week we launched a $40 million commercial loan campaign targeted to local businesses. Together with the launch of our new 'Banking Forward' branding campaign, we are sending a message to our customers and community that Bank of Virginia is ready to lend," Zoeller added.
For the quarter ended September 30, 2011, the Bank reported a net loss of $724,000, or $(0.06) per share, compared with a net loss of $4.9 million or $(1.07) per share for the quarter ended September 30, 2010. The loss in third quarter of 2011 was driven primarily by lower earning asset balances. Net loans totaled $109.5 million at September 30, 2011, a decrease of $30.3 million when compared to a balance of $139.7 million at December 31, 2010. On a linked quarter basis, the Bank's net loss improved by $593,000 or $.06 per share, versus a loss of $1.3 million, or $(0.12) per share as of June 30, 2011.
For the nine-month period ended September 30, 2011, the Bank reported a net loss of $3.8 million, or $(0.34) per share, compared to a net loss of $5.5 million, or $(1.21) per share for the same period last year. The losses are mainly attributable to provisions for loan losses of $2.7 million and $5.3 million for the periods ending September 30, 2011 and 2010, respectively.
The Bank remains well capitalized with a total risk based capital ratio of 12.16% at September 30, 2011.
Review of the balance sheet
The Bank's total assets decreased $33.8 million to $175.4 million at September 30, 2011, compared to $209.2 million at December 31, 2010. Net loans declined $30.3 million, or 21.7%, from $139.7 million at December 31, 2010 to $109.5 million at September 30, 2011. Securities available for sale declined $7.0 million to $28.0 million at September 30, 2011 from $35.0 million at December 31, 2010. Substantially offsetting the decrease in loans and securities was a reduction of $35.7 million, or 25.4%, in higher interest rate time deposits, which declined from a balance of $140.2 million at December 31, 2010 to $104.6 million at September 30, 2011.
During the first nine months of 2011, the level of nonperforming assets increased from $7.5 million or 3.6% of assets at December 31, 2010, to $11.7 million or 6.7% of assets at September 30, 2011. Nonaccrual loans total $10.5 million, or 9.0% of total loans, at September 30, 2011, compared to $6.9 million, or 4.7% of total loans at December 31, 2010. Impaired loans increased $6.3 million, or 28.3% from $22.3 million at December 31, 2010 to $28.6 million at September 30, 2011. The Bank reported charge offs, net of recoveries, of $2.4 million, or 2.2% of total loans, for the first nine months of 2011, compared to net charge offs of $5.2 million for the same period in 2010. Loans past due 30 days or more totaled $12.7 million, or 10.9% of total loans, and $7.0 million, or 4.8% of total loans, at September 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
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