Bank of Virginia Announces Second Quarter 2009 Earnings

• Press Release
• Source: Bank of Virginia
• On 4:30 pm EDT, Monday August 3, 2009

MIDLOTHIAN, Va., Aug. 3, 2009 (GLOBE NEWSWIRE) -- Frank Bell, III, President and Chief Executive Officer of Bank of Virginia (Nasdaq:BOVA - News; www.bankofva.com) announced the Bank's second quarter 2009 financial performance today. The Bank reported a second quarter profit of $142 thousand or $0.05 per basic and diluted earnings per share. This represents a 40% increase over the first quarter of 2009. It should be noted that this second quarter 2009 reported profit is after a special assessment paid to the FDIC of $103 thousand. This assessment based on asset size was imposed on all FDIC insured institutions and in no way is a reflection of the Bank's performance.

Related Quotes

Symbol	Price	Change
BOVA	2.86	-0.14

{"s" : "bova","k" : "c10,l10,p20,t10","o" : "","j" : ""}

The Bank's total assets increased $7 million from $222 million reported March 31, 2009 to $229 million at June 30, 2009. This represents a 3% increase for the quarter. These positive results continue to demonstrate the Bank's dedication to concentrate on growing during this challenging financial environment. "Bank of Virginia continues to be well-capitalized based upon regulatory guidelines with solid earnings as evidenced by our second quarter results. Our customers and shareholders should feel secure and confident in our performance," said Frank Bell, President and CEO.

"We are very pleased with the Bank's second quarter 2009 results we have achieved. As with the first quarter of 2009, we continue to monitor our loan portfolio closely and placed a strong emphasis on increasing core deposits. We were able to continue to produce positive results for the second quarter of 2009 in spite of the continued challenges in the financial markets and weak economic conditions. This past quarter continued to present a challenging environment for the entire financial sector as it has been over the last 18 months," Bell stated.

"Our disciplined approach to the very challenging market also helped increase our net interest income due to the growth of loans and core deposits. Deposits increased $30 million from $171 million at December 31, 2008 to $201 million at June 30, 2009. It is important to note that the bank's deposit growth occurred from an increase in traditional deposit and savings products, not brokered CDs. Since March 31, 2009, net loans grew $8.7 million or 5.6%. We are also very pleased to report that deposits reached a record $201 million at June 30, 2009, an increase of $7 million or 3.6% from March 31, 2009.

Second quarter 2009 net interest income also grew by $78 thousand, compared to March 31, 2009. The Bank's net interest margin remained stable because of a reduction in total cost of funds, which was reflective of continued disciplined deposit pricing.

For the three months ending June 30, 2009, total assets increased 3.2 % while liabilities increased 3.3% compared to March 31, 2009. "The Bank's asset quality and capital position continues to remain strong. As our customer base continues to grow and we focus on serving our customers and shareholders we are confident we will continue to progress," Bell concluded.

In late August 2009, Bank of Virginia will be opening a new 3000 square foot branch office in Chesterfield County, Virginia, which will be a relocation of an existing retail storefront branch. 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, a Virginia state chartered bank headquartered in Midlothian, Virginia currently operates five full-service offices in Chesterfield and Henrico Counties in Virginia. Bank of Virginia 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.

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
 (Unaudited)

                             Three Months             Six Months
                           and Period Ended        and Period Ended
                        ----------------------  ----------------------
                               June 30,                June 30,
                           2009        2008        2009        2008
                        ----------  ----------  ----------  ----------
 Interest
  Income:
    Interest and fees
     on loans           $2,508,318  $2,492,291  $4,915,079  $5,022,232
    Investment
     securities            542,941     546,252   1,069,493   1,118,814
    Interest on federal
     funds sold and
     deposits with banks     2,855       5,260       3,689      51,905
                        ----------  ----------  ----------  ----------
      Total interest
       income            3,054,114   3,043,803   5,988,261   6,192,951
                        ----------  ----------  ----------  ----------

 Interest
  Expense:
    Interest on
     deposits            1,478,573   1,587,608   2,906,374   3,356,887
    Interest on fed
     funds purchased and
     FHLB borrowings       114,392     136,035     237,969     251,145
                        ----------  ----------  ----------  ----------
      Total interest
       expense           1,592,965   1,723,643   3,144,343   3,608,032
                        ----------  ----------  ----------  ----------
      Net interest
       income            1,461,149   1,320,160   2,843,918   2,584,919
    Provision for
     loan losses            70,525      30,000     140,274     143,251
                        ----------  ----------  ----------  ----------
      Net interest
       income after
       provision for
       loan losses       1,390,624   1,290,160   2,703,644   2,441,668
                        ----------  ----------  ----------  ----------

 Non-interest
  Income:
    Service charges on
     deposit accounts       55,779      51,579      94,002     104,060
    Net gain on
     available for sale
     securities             96,431      68,568     155,932     123,664
    Other fee income        50,168      32,366      97,547      64,494
                        ----------  ----------  ----------  ----------
      Total non-interest
       income              202,378     152,513     347,481     292,218
                        ----------  ----------  ----------  ----------

 Non-interest
  Expense:
    Salaries and
     employee benefits     779,817     778,051   1,573,226   1,551,230
    Occupancy expense      109,599     105,203     223,690     204,676
    Equipment expense       56,585      74,149     114,653     155,931
    Data processing        119,304     105,371     226,629     202,337
    Marketing expense       28,869      46,725      56,594     140,931
    Legal and
     professional fees      39,966      66,247      78,070     105,948
    FDIC insurance
     assessments           136,985      22,022     167,561      44,047
    Other operating
     expenses              179,721     188,426     367,257     361,320
                        ----------  ----------  ----------  ----------
      Total non-interest
       expenses          1,450,846   1,386,194   2,807,680   2,766,420
                        ----------  ----------  ----------  ----------

      Net income (loss) $  142,156  $   56,479  $  243,445  $  (32,534)
                        ==========  ==========  ==========  ==========

    Income (loss) per
     share, basic and
     diluted            $     0.05  $     0.02  $     0.08  $    (0.01)
                        ==========  ==========  ==========  ==========
    Weighted Average
     Shares Outstanding:
      Basic              3,031,866   3,031,866   3,031,866   3,031,866
                        ==========  ==========  ==========  ==========
      Diluted            3,031,866   3,035,610   3,031,866   3,033,353
                        ==========  ==========  ==========  ==========
    At period end:
      Book value
       per share              5.65        5.66
      Market value
       per share              3.96        6.30


 BANK OF VIRGINIA
 Balance Sheets

                                              June 30,    December 31,
                                                2009          2008
                                             Unaudited       Audited
                                            ------------  ------------
 Assets
   Cash and due from banks                  $  4,447,549   $ 2,608,500
   Federal funds sold and interest-bearing
    balances with banks                        3,274,193        42,194
                                            ------------  ------------
                                               7,721,742     2,650,694
   Securities available for sale, at fair
    market value                              47,073,353    39,474,175
   Restricted securities                       1,531,200     1,534,550
   Loans, net of allowance for loan losses
    of $3,083,263 in 2009 and $2,942,988
    in 2008                                  165,344,799   152,962,046
   Premises and equipment, net                 5,775,333     5,688,585
   Accrued interest receivable                   912,334       864,630
   Other real estate owned                       308,019       308,019
   Other assets                                  241,991       229,220
                                            ------------  ------------

     Total assets                           $228,908,771  $203,711,919
                                            ============  ============

 Liabilities
   Deposits:
   Noninterest-bearing                      $ 17,713,107  $ 12,483,762
   Savings and interest-bearing demand        24,554,017    18,770,259
   Time, $100,000 and over                    67,457,003    55,939,332
   Other time                                 90,936,287    83,818,330
                                            ------------  ------------
     Total deposits                          200,660,414   171,011,683
   Accrued expenses and other liabilities      1,127,263     1,208,215
   FHLB borrowings                            10,000,000    15,000,000
   Federal funds purchased                            --       176,000
                                            ------------  ------------
     Total liabilities                       211,787,677   187,219,898
                                            ------------  ------------

 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 2009 and 2008,
    respectively                               7,579,665     7,579,665
   Additional paid-in capital                 14,710,809    14,705,508
   Retained (deficit)                         (5,670,497)   (5,913,941)
   Accumulated other comprehensive
    income (loss)                                501,117       (55,211)
                                            ------------  ------------
     Total stockholders' equity               17,121,094    16,316,021
                                            ------------  ------------

     Total liabilities and
      stockholders' equity                  $228,908,771  $203,535,919
                                            ============  ============


 BANK OF VIRGINIA
 Selected Historical Information
 (Unaudited)
 As of and for the Quarter Ended

                  June 30,  March 31,   Dec. 31,  Sept. 30,   June 30,
                    2009       2009       2008       2008       2008
                 ---------  ---------  ---------  ---------  ---------

 Asset Quality
  Analysis:

 Allowance for
  loan losses:
 Beginning
  balance        3,012,738  2,942,988  1,525,551  1,419,977  1,389,977
   Provision        70,525     69,750  1,515,500    105,574     30,000
   Charge-offs          --         --    (98,063)        --         --
   Recoveries           --         --         --         --         --
                 ---------  ---------  ---------  ---------  ---------
 Net charge-offs        --         --    (98,063)        --         --
                 ---------  ---------  ---------  ---------  ---------
    Ending
     Balance     3,083,263  3,012,738  2,942,988  1,525,551  1,419,977
                 =========  =========  =========  =========  =========

 Nonperforming
  Assets:

 Nonaccrual
  loans          1,021,367         --    244,273         --         --
 Foreclosed real
  estate           308,019    308,019    308,019         --         --
 Repossessions          --         --         --         --         --
 Loans 90 days or
  more past due
  and still
  accruing       1,788,029    696,000    696,000         --         --
                 ---------  ---------  ---------  ---------  ---------
    Non-
     performing
     assets      3,117,415  1,004,019  1,248,292         --         --
                 =========  =========  =========  =========  =========

 Allowance for
  loan losses as
  a percent of
  loans              1.83%      1.89%      1.89%      1.00%      0.98%

Bank of Virginia
Kenneth P. Mulkey, Senior Vice-President
& Chief Financial Officer
804-763-1333