Cordia Bancorp Inc. Reports Second Quarter Profit

| Source: Cordia Bancorp Cordia Bancorp

MIDLOTHIAN, Va., Aug. 24, 2015 (GLOBE NEWSWIRE) -- Cordia Bancorp Inc. ("Cordia") (NASDAQ:BVA), parent company of Bank of Virginia, reported net income of $236,000 or $0.04 per share for the second quarter of 2015, compared to a net loss of $270,000, or $(0.09) per share for the second quarter of 2014. For the first six months of 2015, net income was $587,000 or $0.09 per share compared to a net loss of $554,000, or $(0.19) per share, for the same period of 2014.

Highlights

  • 26% year-over-year growth in loans, excluding government guaranteed student loans
  • 16% year-over-year growth in total assets and total deposits
  • Nonperforming assets decreased to 1.08% of total assets
  • Ramp-up of CordiaGrad, an online lending platform to refinance student loans.

Chief Executive Officer Jack Zoeller stated, "In 2015 we have continued our exceptional growth in assets which has averaged 25% per year since 2011. Our new online lending channel CordiaGrad is now accelerating its production of high quality consumer loans. In addition, our recruitment of Ed Barham as the new Bank of Virginia CEO demonstrates our commitment to strategic as well as organic growth."

Balance Sheet Activity

  • Asset Growth. Total assets increased to $342.8 million at June 30, 2015, compared to $318.6 million at December 31, 2014. Year-over-year, total assets increased 16%, from $295.5 million at June 30, 2014. During the six months of 2015, loans held for investment increased 6%, or $12.9 million. Of this amount, organic originations accounted for $19.9 million while purchased guaranteed student loans decreased $7.0 million. In addition, investment securities increased $11.3 million, while cash and cash equivalents decreased $2.5 million.
  • Deposit Growth.  Total deposits at June 30, 2015, were $284.6 million, an increase of $19.0 million from $265.6 million at December 31, 2014. Year-over-year, total deposits increased 16%, from $245.2 million at June 30, 2014.
  • Asset Quality. Asset quality continued to improve, with non-performing assets decreasing to $3.7 million, or 1.08% of total assets, at June 30, 2015, from $3.9 million, or 1.21% of total assets, at December 31, 2014, and $4.1 million, or 1.39%, at June 30, 2014.
  • Tangible Book Value.  Tangible book value per share was $4.19 at June 30, 2015.

Operating Results

Three months ended June 30, 2015 compared to the three months ended June 30, 2014

  • Net income for the quarter ended June 30, 2015 was $236,000 compared to a net loss of $270,000 for the prior year second quarter. 
  • Net interest income was $2.15 million for the second quarter of 2015, compared to $2.08 million for the second quarter of 2014. 
  • Net interest income, net of acquisition accounting adjustments, increased $91,000, or 4.5%.
  • Net interest margin was 2.78% and 3.05% for the second quarter of 2015 and 2014, respectively. Adjusting for the impact of acquisition accounting, net interest margin was 2.71% for the 2015 quarter compared to 2.95% for the 2014 quarter. 
  • The provision for loan losses was $63,000 in the second quarter of 2015 compared to a provision of $209,000 in the prior year quarter.
  • Noninterest income increased to $97,000 from $62,000 in the prior year quarter.
  • Noninterest expense decreased $248,000 to $1.95 million for the second quarter of 2015, compared to $2.20 million for the second quarter of 2014 primarily due to a favorable reversal in the 2015 quarter of a fair value discount of $225,000 related to the purchase of a bank property and the termination of the related lease.

Six months ended June 30, 2015 compared to the six months ended June 30, 2014

  • Net income for the first six months of 2015 was $587,000 compared to a net loss of $554,000 for the first six months of 2014. 
  • Net interest income was $4.16 million for the 2015 period, compared to $3.97 million for the 2014 period. 
  • Net interest income, net of acquisition accounting adjustments, increased $276,000, or 7.2%.
  • Net interest margin was 2.74% and 3.19% for the first six months of 2015 and 2014, respectively. Adjusting for the impact of acquisition accounting, net interest margin was 2.69% for the 2015 period compared to 3.06% for the 2014 period. 
  • The provision for loan losses was a recovery of $277,000 for the first six months of 2015 compared to a provision of $229,000 for the first six months of 2014.
  • Noninterest income increased to $310,000 from $185,000 in the prior year period due primarily to an increase in gains on the sale of securities and loans of $80,000.
  • Noninterest expense decreased $318,000 to $4.16 million for the first six months of 2015, compared to $4.48 million for the first six months of 2014 primarily due to a favorable reversal in the 2015 quarter 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 seeking to invest in undervalued community banks and pursue organic and strategic growth in the Mid-Atlantic banking market.  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.

In late 2014 the Bank launched CordiaGrad, an online lending channel that offers refinancing to highly qualified borrowers holding federal, private, or parent student loans. 

For more information about Cordia Bancorp, Bank of Virginia and CordiaGrad, visit our websites: www.cordiabancorp.com, www.bankofva.com and www.cordiagrad.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)
           
  June 30, March 31, Dec. 31, Sept. 30, June 30,
(Dollars in thousands, except per share data) 2015 2015 2014 2014 2014
Assets          
Cash and due from banks  $ 11,771  $ 9,602  $ 5,484  $ 5,789  $ 5,332
Fed funds sold and Interest-bearing deposits   7,593  23,495  16,363  6,131  9,843
Total cash and cash equivalents  19,364  33,097  21,847  11,920  15,175
Securities available for sale, at fair value  58,445  41,411  53,483  54,581  45,835
Securities held to maturity, at cost  27,087  20,132  20,716  21,263  21,839
Restricted securities  2,331  2,405  2,092  1,525  1,525
Loans held for sale  96  117  --  --  --
Loans held for investment:          
Commercial real estate  111,180  109,734  103,253  92,300  90,909
Commercial and industrial  27,919  24,057  24,153  25,376  24,605
Guaranteed student loans  57,900  61,441  64,870  67,421  70,624
Consumer and other  28,865  24,521  20,683  19,221  18,147
Total loans held for investment  225,864  219,753  212,959  204,318  204,285
Less: Allowance for loan losses  (990)  (1,102)  (1,089)  (1,226)  (1,407)
Net loans held for investment  224,874  218,651  211,870  203,092  202,878
           
Premises and equipment, net  6,083  4,402  4,432  4,496  4,510
Accrued interest receivable  2,033  1,986  2,040  1,902  1,830
Other real estate owned, net of valuation allowance  1,769  1,647  1,641  1,543  1,543
Other assets  704  696  479  485  390
Total assets  $ 342,786  $ 324,544  $ 318,600  $ 300,807  $ 295,525
           
Liabilities and stockholders' equity          
Non-interest bearing deposits  31,239  27,628  30,709  24,490  24,890
Savings and interest bearing demand deposits  100,596  83,077  83,339  78,779  75,660
Time deposits  152,800  154,920  151,555  149,679  144,643
Total deposits  284,635  265,625  265,603  252,948  245,193
           
Accrued expenses and other liabilities  464  1,061  861  877  3,419
FHLB borrowings  30,000  30,000  25,000  20,000  20,000
Total liabilities  315,099  296,686  291,464  273,825  268,612
           
Common stock - voting  51  51  51  51  51
Common stock - nonvoting  14  14  14  14  14
Additional paid-in-capital  33,061  33,011  32,956  32,895  32,847
Retained deficit  (4,830)  (5,066)  (5,417)  (5,477)  (5,559)
Accumulated other comprehensive loss  (609)  (152)  (468)  (501)  (440)
Total stockholders' equity  27,687  27,858  27,136  26,982  26,913
Total liabilities and stockholders' equity  $ 342,786  $ 324,544  $ 318,600  $ 300,807  $ 295,525
 
Cordia Bancorp
Consolidated Statements of Income (unaudited)
 
  Three Months Ended Six Months Ended
  June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30,
(Dollars in thousands, except per share data) 2015 2015 2014 2014 2014 2015 2014
Interest Income              
Interest and fees on loans  $ 2,327  $ 2,183  $ 2,247  $ 2,275  $ 2,252  $ 4,510  $ 4,401
Investment securities  383  363  405  346  311  746  518
Interest on federal funds sold and deposits with banks  5  7  6  4  9  12  15
Total interest income  2,715  2,553  2,658  2,625  2,572  5,268  4,934
               
Interest Expense              
Interest on deposits  470  454  451  443  441  924  867
Interest on FHLB Borrowings  93  89  76  57  56  182  97
Total interest expense  563  543  527  500  497  1,106  964
               
Net interest income  2,152  2,010  2,131  2,125  2,075  4,162  3,970
Provision for (recovery of) loan losses  63  (340)  182  (106)  209  (277)  229
Net interest income after provision for (recovery of) loan losses  2,089  2,350  1,949  2,231  1,866  4,439  3,741
               
Non-interest income              
Service charges on deposit accounts  30  30  34  44  19  60  45
Net gain (loss) on sale of available for sale securities  --  114  116  (3)  --  114  64
Other fee income  67  69  50  41  43  136  76
Total non-interest income  97  213  200  82  62  310  185
               
Non-interest expense              
Salaries and employee benefits  1,082  1,280  1,094  1,244  1,102  2,362  2,508
Professional services  100  84  104  92  125  184  231
Occupancy  159  153  139  139  136  312  287
Reversal of occupancy fair value discount  (225)  --  --  --  --  (225)  --
Data processing and communications  206  198  184  206  160  404  302
FDIC assessment and bank fees  92  90  96  99  96  182  190
Bank franchise taxes  49  49  23  23  27  98  56
Student loan servicing fees and other loan expenses  208  146  191  144  210  354  336
Other real estate expenses  45  6  18  6  17  51  22
Supplies and equipment  70  73  78  82  83  143  158
Insurance  19  20  42  40  44  39  85
Director's fees  21  26  50  46  75  47  91
Marketing and business development  31  18  21  15  9  49  15
Other operating expenses  93  69  49  95  114  162  199
Total non-interest expense  1,950  2,212  2,089  2,231  2,198  4,162  4,480
               
Net income (loss)  $ 236  $ 351  $ 60  $ 82  $ (270)  587  (554)
               
Earnings (loss) per share, basic and diluted  $ 0.04  $ 0.05  $ 0.01  $ 0.01  $ (0.09)  $ 0.09  $ (0.19)
Weighted average shares outstanding, basic   6,583,848  6,559,217  6,504,106  6,504,106  3,033,300  6,571,600  2,898,047
Weighted average shares outstanding, diluted  6,583,848  6,559,217  6,504,106  6,504,106  3,033,300  6,571,600  2,898,047
 
Cordia Bancorp
Consolidated Financial Highlights (unaudited)
  As of and for the Three Months Ended Six Months Ended
  June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30,
(Dollars in thousands, except per share data) 2015 2015 2014 2014 2014 2015 2014
Results of Operations              
Interest income  $ 2,715  $ 2,553  $ 2,658  $ 2,625  $ 2,572  $ 5,268  $ 4,934
Interest expense  563  543  527  500  497  1,106  964
Net interest income  2,152  2,010  2,131  2,125  2,075  4,162  3,970
Provision for (recovery of) loan losses  63  (340)  182  (106)  209  (277)  229
Net interest income after provision for (recovery of) loan losses  2,089  2,350  1,949  2,231  1,866  4,439  3,741
Non-interest income  97  213  200  82  62  310  185
Non-interest expense  1,950  2,212  2,089  2,231  2,198  4,162  4,480
Net income (loss)  $ 236  $ 351  $ 60  $ 82  $ (270)  $ 587  $ (554)
               
Earnings (loss) per share, basics and diluted  $ 0.04  $ 0.05  $ 0.01  $ 0.01  $ (0.09)  $ 0.09  $ (0.19)
Weighted average shares outstanding, basic   6,583,848  6,559,217  6,504,106  6,504,106  3,033,300  6,571,600  2,898,047
Weighted average shares outstanding, diluted  6,583,848  6,559,217  6,504,106  6,504,106  3,033,300  6,571,600  2,898,047
               
Performance Ratios              
Return on average assets 0.29% 0.44% 0.08% 0.11% -0.38% 0.36% -0.42%
Return on average equity 3.40% 5.20% 0.88% 1.21% -4.21% 4.29% -5.66%
Return on average tangible equity 3.41% 5.22% 0.88% 1.21% -4.23% 4.30% -5.70%
Efficiency ratio 86.71% 99.51% 89.62% 101.09% 102.85% 93.07% 107.82%
               
Yields and Rates              
Yield on loans 4.18% 4.16% 4.29% 4.47% 4.40% 4.17% 4.60%
Yield on securities 2.12% 2.07% 2.04% 1.94% 2.27% 2.10% 2.19%
Yield on interest earning assets 3.51% 3.42% 3.53% 3.72% 3.78% 3.46% 3.94%
Cost of interest bearing deposits 0.79% 0.78% 0.76% 0.78% 0.82% 0.79% 0.85%
Cost of total deposits 0.71% 0.70% 0.68% 0.71% 0.74% 0.70% 0.76%
Cost of borrowings 1.19% 1.25% 1.25% 1.13% 1.12% 1.22% 1.29%
Cost of interest bearing liabilities 0.84% 0.83% 0.81% 0.81% 0.85% 0.83% 0.88%
Interest rate spread 2.67% 2.59% 2.72% 2.91% 2.94% 2.63% 3.06%
Net interest margin 2.78% 2.69% 2.83% 3.01% 3.05% 2.74% 3.19%
               
Capital              
Total equity to total assets 8.08% 8.58% 8.52% 8.97% 9.11% 8.08% 9.11%
Tangible equity to total assets 8.05% 8.56% 8.49% 8.94% 9.07% 8.05% 9.07%
Book value per share  4.21  4.23  4.17  4.15  4.14  4.21  4.14
Tangible book value per share  4.19  4.22  4.16  4.13  4.12  4.19  4.12
Common shares outstanding  6,582,806  6,584,106  6,504,106  6,504,106  6,504,106  6,582,806  6,505,781
               
Average Balances              
Loans  $ 223,286  $ 212,566  $ 207,833  $ 201,953  $ 205,104  $ 217,956 $ 191,451
Securities  72,391  71,198  78,590  70,848  54,904  71,797  47,367
Earning assets  310,680  302,481  298,712  279,876  272,733  306,603  250,715
Total assets  327,439  321,455  315,167  295,834  286,525  324,464  264,216
Interest bearing deposits  238,715  235,388  234,953  223,927  215,856  237,061  204,959
Total deposits  267,356  264,434  262,947  248,087  238,416  265,903  227,130
FHLB borrowings  31,346  28,778  24,185  20,000  20,000  30,069  15,083
Interest bearing liabilities  270,061  264,166  259,138  243,927  235,856  267,130  220,042
Total equity  27,835  27,353  27,198  26,918  25,727  27,595  19,564
Tangible equity  27,745  27,254  27,089  26,800  25,601  27,500  19,434
               
Asset Quality              
Net charge-offs/(recoveries)  175  (353)  319  75  306  (178)  311
Net charge-off rate 0.31% -0.67% 0.61% 0.15% 0.60% -0.16% 0.16%
Non-performing loans  1,918  2,108  2,221  1,323  2,572  1,918  2,572
Non-performing assets  3,687  3,755  3,862  2,866  4,115  3,687  4,115
Allowance for loan losses  990  1,102  1,089  1,226  1,407  990  1,407
Non-performing loans as a % of total loans held for investment 0.85% 0.96% 1.04% 0.65% 1.26% 0.85% 1.26%
Non-performing assets as a % of total assets 1.08% 1.16% 1.21% 0.95% 1.39% 1.08% 1.39%
Allowance for loan losses as a % of total loans held for investment 0.44% 0.50% 0.51% 0.60% 0.69% 0.44% 0.69%
Allowance for loan losses as a % of non-performing loans 51.62% 52.28% 49.03% 92.67% 54.70% 51.62% 54.70%
 
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 Six Months Ended
  June 30, March 31,  Dec. 31, Sept. 30, June 30, June 30, June 30,
(Dollars in thousands, except per share data) 2015 2015 2014 2014 2014 2015 2014
Tangible Equity and Tangible Assets (Period End)              
Total shareholders' equity (GAAP)  $ 27,687  $ 27,858  $ 27,136  $ 26,982  $ 26,913  $ 27,687  $ 26,913
Less: intangible assets  86  95  104  112  121  86  121
Tangible Equity (non-GAAP)  $ 27,601  $ 27,763  $ 27,032  $ 26,870  $ 26,792  $ 27,601  $ 26,792
               
Total assets (GAAP)  $ 342,786  $ 324,544  $ 318,600  $ 300,807  $ 295,525  $ 342,786  $ 295,525
Less: intangible assets  86  95  104  112  121  86  121
Tangible assets (non-GAAP)  $ 342,700  $ 324,449  $ 318,496  $ 300,695  $ 295,404  $ 342,700  $ 295,404
               --
Total equity to total assets (GAAP) 8.08% 8.58% 8.52% 8.97% 9.11% 8.08% 9.11%
Book value per share (GAAP)  $ 4.21  $ 4.23  $ 4.17  $ 4.15  $ 4.14  $ 4.21  $ 4.14
Tangible equity to tangible assets (non-GAAP) 8.05% 8.56% 8.49% 8.94% 9.07% 8.05% 9.07%
Tangible book value per share (non-GAAP)  $ 4.19  $ 4.22  $ 4.16  $ 4.13  $ 4.12  $ 4.19  $ 4.12
               
               
Tangible Equity and Tangible Assets (Average)              
Total shareholders' equity (GAAP)  $ 27,835  $ 27,353  $ 27,198  $ 26,918  $ 25,727  $ 27,595  $ 19,564
Less: intangible assets  90  99  109  118  126  95  130
Tangible Equity (non-GAAP)  $ 27,745  $ 27,254  $ 27,089  $ 26,800  $ 25,601  $ 27,500  $ 19,434
               
Total assets (GAAP)  327,439  321,455  315,167  295,834  286,525  324,464  264,216
Less: intangible assets  90  99  109  118  126  95  130
Tangible assets (non-GAAP)  $ 327,349  $ 321,356  $ 315,058  $ 295,716  $ 286,399  $ 324,369  $ 264,086
               
Total equity to total assets (GAAP) 8.50% 8.51% 8.63% 9.10% 8.98% 8.50% 7.40%
Book value per share (GAAP)  $ 4.23  $ 4.15  $ 4.18  $ 4.14  $ 3.95  $ 4.18  $ 3.01
Tangible equity to tangible assets (non-GAAP) 8.48% 8.48% 8.60% 9.06% 8.94% 8.48% 7.36%
Tangible book value per share (non-GAAP)  $ 4.21  $ 4.14  $ 4.16  $ 4.12  $ 3.94  $ 4.18  $ 2.99 

            








        

            

                

                    
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