MIDLOTHIAN, Va., March 4, 2008 (PRIME NEWSWIRE) -- Bank of Virginia (Nasdaq:BOVA) (www.bankofva.com) today reported fourth quarter 2007 earnings of $94,000 or basic and diluted earnings of $0.03 per share for the quarter. This represents a 50.2% decrease from $189,000 or basic and diluted earnings per share of $0.06 for the third quarter of 2007.
Frank Bell, President and Chief Executive Officer, said, "Bank of Virginia experienced a positive year in overall earnings for 2007. We were, however, impacted in our fourth quarter with building and salary expenses associated with preparing to open our newest branch. Economic uncertainty and pressures on margins directly impacted our fourth quarter results. Though we had a decrease in earnings for fourth quarter 2007, we are pleased with our year-end results and the direction of the Company."
Year-to-date earnings were $507,000 or basic and diluted earnings per share of $0.17, resulting in a $408,000 increase over the comparable period of 2006, which reflected net income of $99,000 or basic and diluted earnings per share of less than $0.03 for the twelve months ended December 31, 2006. Return on average assets was 0.32% and return on average equity was 2.92% for the 12 months ending December 31, 2007.
The Company achieved its performance by finishing the quarter with assets of $184 million. As part of its success, the balance sheet showed continued growth driven by a strong loan portfolio and continual level of cost controls. Net loans increased from $97 million to $131 million in 2007, representing a 34.7% increase for the year. Deposit balances grew steadily in support of loan demand and were $155 million at December 31, 2007 in comparison to $111 million at December 31, 2006, a 38.9% increase.
Frank Bell, President and Chief Executive Officer, said, "We are very pleased with the Bank's 2007 performance. Our Company is not involved in the sub-prime market, so ultimately we are not experiencing any of the negative returns associated with this business. Our loan portfolio continues to perform well. Increased pressures on margins and the expenses associated with our growth continue to impact profitability." The Bank continues to maintain strong credit quality and had no charge-offs or non-performing assets for the year.
Bank of Virginia opened a new 4,500 square foot office in western Henrico County, Virginia in January of 2008. This new location is the Bank's 5th branch office. Management feels positive that with the existing shareholder and customer base that surrounds the office, it will prove to be a positive addition to Bank of Virginia.
Bank of Virginia operates five full-service branch offices in Chesterfield County and Henrico County in Virginia. Bank of Virginia common stock is traded on the NASDAQ stock market under the quotation symbol "BOVA". Additional investor relation information can be found on the internet at 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 Bank's periodic filings with the Board of Governors of the Federal Reserve System, including the Bank's annual report on Form 10-KSB 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.
BANK OF VIRGINIA
Statements of Operations
Three Months Ended Twelve Months Ended
------------------------ ------------------------
December 31, December 31,
2007 2006 2007 2006
----------- ----------- ----------- -----------
Interest Income:
Interest and fees
on loans $ 2,617,830 $ 1,906,905 $ 9,526,583 $ 6,257,316
Investment
securities 461,257 273,814 1,494,000 1,022,726
Interest on
federal funds
sold and deposits
with banks 88,821 95,043 359,886 182,116
----------- ----------- ----------- -----------
Total interest
income 3,167,908 2,275,762 11,380,469 7,462,158
----------- ----------- ----------- -----------
Interest Expense:
Interest on
deposits 1,610,466 1,124,469 5,868,301 3,246,309
Interest on fed
funds purchased
and FHLB
borrowings 113,594 55,552 320,661 291,806
----------- ----------- ----------- -----------
Total interest
expense 1,724,060 1,180,021 6,188,962 3,538,115
----------- ----------- ----------- -----------
Net interest
income 1,443,848 1,095,741 5,191,507 3,924,043
Provision for
loan losses 98,365 101,442 345,534 384,495
----------- ----------- ----------- -----------
Net interest
income after
provision for
loan losses 1,345,483 994,299 4,845,973 3,539,548
----------- ----------- ----------- -----------
Non-interest
Income:
Service charges
on deposit
accounts 37,603 22,937 121,619 83,460
Net gain on
available for
sale securities 11,316 2,879 11,776 6,235
Other fee income 25,413 17,185 86,057 67,503
------------ ----------- ----------- -----------
Total
non-interest
income 74,332 43,001 219,452 157,198
----------- ----------- ----------- -----------
Non-interest
Expense:
Salaries and
employee benefits 743,955 554,956 2,709,305 2,157,999
Occupancy expense 78,698 73,830 319,740 276,193
Equipment expense 52,298 51,612 208,382 188,321
Data processing 97,890 58,219 351,517 237,610
Marketing expense 40,870 31,482 144,876 119,125
Legal and
professional fees 38,962 28,301 146,791 99,383
Other operating
expenses 273,199 149,083 678,318 519,248
----------- ----------- ----------- -----------
Total
non-interest
expense 1,325,872 947,483 4,558,929 3,597,879
----------- ----------- ----------- -----------
Net income $ 93,943 $ 89,817 $ 506,496 $ 98,867
=========== =========== =========== ===========
Income per share,
basic and
diluted $ 0.03 $ 0.03 $ 0.17 $ 0.03
=========== =========== =========== ===========
Weighted Average
Shares
Outstanding:
Basic 3,031,866 3,031,866 3,031,866 3,031,866
=========== =========== =========== ===========
Diluted 3,031,866 3,031,866 3,031,866 3,032,046
=========== =========== =========== ===========
At period end:
Book value per
share 5.94 5.63
Market value per
share 6.00 7.60
BANK OF VIRGINIA
Balance Sheets
December 31, December 31,
2007 2006
Audited Audited
------------ ------------
Assets
Cash and due from banks $ 4,183,359 $ 3,681,489
Federal funds sold and interest-bearing
balances with banks 4,771,376 4,859,700
------------ ------------
8,954,735 8,541,189
Securities available for sale, at fair
market value 37,641,272 23,924,065
Loans, net of allowance for loan losses
of $1,276,726 in 2007 and $931,192 in
2006 130,805,447 97,083,314
Premises and equipment, net 5,532,009 3,851,209
Accrued interest receivable 857,853 698,736
Other assets 217,311 196,836
------------ ------------
Total assets $184,008,627 $134,295,349
============ ============
Liabilities
Deposits:
Noninterest-bearing $ 13,020,632 $ 9,484,012
Savings and interest-bearing demand 17,122,793 15,242,879
Time, $100,000 and over 46,155,151 33,293,747
Other time 78,586,170 53,452,844
------------ ------------
Total deposits 154,884,746 111,473,482
Accrued expenses and other liabilities 1,119,459 759,748
FHLB borrowings 10,000,000 5,000,000
------------ ------------
Total liabilities 166,004,205 117,233,230
------------ ------------
Stockholders' Equity
Preferred stock, $5 par value, 5,000,000
shares authorized, none issued -- --
Common stock, $2.50 par value, 40,000,000
shares authorized, 3,031,866 shares
issued and outstanding in 2007 and 2006,
respectively 7,579,665 7,579,665
Additional paid-in capital 14,693,218 14,630,698
Retained (deficit) (4,599,347) (5,105,842)
Accumulated other comprehensive income
(loss) 330,886 (42,402)
------------ ------------
Total stockholders' equity 18,004,422 17,062,119
------------ ------------
Total liabilities and stockholders'
equity $184,008,627 $134,295,349
============ ============
BANK OF VIRGINIA
Selected Historical Information
(Unaudited)
As of and for the Quarter Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
2007 2007 2007 2007 2006
--------- --------- --------- --------- --------
Asset Quality
Analysis:
Allowance for
loan losses:
Beginning
balance 1,178,361 1,122,957 1,018,029 931,192 829,750
Provision 98,365 55,404 104,928 86,837 101,442
Charge-offs -- -- -- -- --
Recoveries -- -- -- -- --
--------- --------- --------- --------- --------
Net charge-offs -- -- -- -- --
--------- --------- --------- --------- --------
Ending Balance 1,276,726 1,178,361 1,122,957 1,018,029 931,192
========= ========= ========= ========= ========
Nonperforming
Assets:
Nonaccrual loans -- -- -- -- --
Foreclosed real
estate -- -- -- -- --
Repossessions -- -- -- -- --
Loans 90 days or
more past due
and still
accruing -- -- -- -- --
--------- --------- --------- --------- --------
Nonperforming
assets -- -- -- -- --
========= ========= ========= ========= ========
Allowance for
loan losses as
a percent of
loans 0.97% 0.97% 0.95% 0.94% 0.95%