10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2014

Commission File No. 001-35852

Cordia Bancorp Inc.

(Exact name of registrant as specified in its charter)

Virginia	26-4700031
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

11730 Hull Street Road

Midlothian, Virginia 23112

(Address of principal executive offices) (zip code)

(804) 763-1333

(Registrant’s telephone number, including area code)

Indicate . check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  

YES x                          NO o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES x                          NO o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b–2 of the Exchange Act:

Large accelerated filer     ¨              Accelerated filer ¨      Smaller reporting company x

Non-accelerated filer     o   (Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o    No x

As of August 5, 2014, there were 6,505,781 shares of common stock outstanding.

		Page
PART I
Financial Information
Item 1.	Condensed Consolidated Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations	2
	Condensed Consolidated Statements of Comprehensive Income (Loss)	3
	Condensed Consolidated Statements of Cash Flows	4
	Notes to Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	51
Item 4.	Controls and Procedures	51
PART II
Other Information
Item 1.	Legal Proceedings	52
Item 1A.	Risk Factors	52
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	52
Item 3.	Defaults Upon Senior Securities	52
Item 4.	Mine Safety Disclosures	52
Item 5.	Other Information	52
Item 6.	Exhibits	53
Signatures		54

Item 1. Condensed Consolidated Financial Statements

Cordia Bancorp Inc.

Condensed Consolidated Balance Sheets

	(Unaudited)
(dollars in thousands, except per share data)	June 30,  2014			December 31, 2013
Assets
Cash and due from banks	$	5,332		$	5,290
Federal funds sold and interest-bearing deposits with banks		9,843			8,694
Total cash and cash equivalents		15,175			13,984
Securities available for sale, at fair market value		45,835			24,567
Securities held to maturity, at cost (fair value $21,959 and $14,597 at June 30, 2014 and December 31, 2013, respectively)		21,839			14,753
Restricted securities		1,525			1,074
Loans net of allowance for loan losses of $1,407 and $1,489, at June 30, 2014 and December 31, 2013, respectively		202,878			172,518
Premises and equipment, net		4,510			4,464
Accrued interest receivable		1,830			1,655
Other real estate owned, net of valuation allowance		1,543			1,545
Other assets		390			588
Total assets	$	295,525		$	235,148
Liabilities and stockholders' equity
Deposits
Non-interest bearing	$	24,883		$	22,845
Savings and interest-bearing demand		76,044			60,685
Time, $100,000 and over		93,565			76,231
Other time		50,701			51,053
Total deposits		245,193			210,814
Accrued expenses and other liabilities		3,419			1,047
FHLB borrowings		20,000			10,000
Total liabilities		268,612			221,861
Stockholders' equity
Preferred stock, 2,000 shares authorized, $0.01 par value, none issued and outstanding		-			-
Common stock:
Common stock - 120,000,000 shares authorized, $0.01 par value, 5,105,344 and 2,788,302 shares were outstanding as of June 30, 2014 and December 31, 2013, respectively		50			28
Nonvoting common stock, 5,000,000 shares authorized,  $0.01 par value,  1,400,437 and 0 shares were outstanding as of June 30, 2014 and December 31, 2013, respectively		14			-
Undesignated — 80,000,000 authorized, none issued		-			-
Additional paid-in capital		32,848			18,648
Retained deficit		(5,559	)		(5,005	)
Accumulated other comprehensive loss		(440	)		(384	)
Total stockholders' equity		26,913			13,287
Total liabilities and stockholders' equity	$	295,525		$	235,148

See Notes to the Condensed Consolidated Financial Statements

1

Cordia Bancorp Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

	Three months ended June 30,					Six months ended June 30,
(dollars in thousands, except per share data)	2014			2013		2014			2013
Interest income
Interest and fees on loans	$	2,252		$	2,516	$	4,401		$	5,095
Investment securities		311			72		518			142
Federal funds sold and deposits with banks		9			29		15			44
Total interest income		2,572			2,617		4,934			5,281
Interest expense
Interest on deposits		441			426		867			818
Interest on FHLB borrowings		56			41		97			81
Total interest expense		497			467		964			899
Net interest income		2,075			2,150		3,970			4,382
Provision for loan losses		209			7		229			134
Net interest income after provision for loan losses		1,866			2,143		3,741			4,248
Non-interest income
Service charges on deposit accounts		19			29		45			62
Net gain on sale of available for sale securities		-			-		64			-
Other fee income		43			36		76			71
Total non-interest income		62			65		185			133
Non-interest expense
Salaries and employee benefits		1,150			974		2,556			2,159
Professional services		125			211		231			273
Occupancy		120			145		271			290
Data processing and communications		151			144		293			269
FDIC assessment and bank fees		93			114		187			234
Bank franchise taxes		27			20		56			46
Student loan servicing fees and other loan expenses		210			102		336			117
Other real estate expenses		17			12		22			28
Supplies and equipment		65			64		140			133
Insurance		44			42		85			84
Director's fees		24			38		40			72
Marketing and business development		9			15		15			37
Other operating expenses		163			66		248			157
Total non-interest expense		2,198			1,947		4,480			3,899
Net income (loss)	$	(270	)	$	261	$	(554	)	$	482
Basic income (loss) per share	$	(0.09	)	$	0.09	$	(0.19	)	$	0.20
Diluted income (loss) per share	$	(0.09	)	$	0.09	$	(0.19	)	$	0.20
Weighted average shares outstanding, basic		3,017,772			2,764,090		2,898,047			2,431,019
Weighted average shares outstanding, diluted		3,017,772			2,775,802		2,898,047			2,444,923

See Notes to the Condensed Consolidated Financial Statements

2

Cordia Bancorp Inc.

Condensed Consolidated Statement of Comprehensive Income (Loss)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2014			2013			2014			2013
Net income (loss)	$	(270	)	$	261		$	(554	)	$	482
Unrealized losses on available for sale securities		(66	)		(259	)		(81	)		(280	)
Amortization of AFS to HTM reclassification adjustment		11			-			25			-
Other comprehensive loss		(55	)		(259	)		(56	)		(280	)
Comprehensive income (loss)	$	(325	)	$	2		$	(610	)	$	202

See Notes to the Condensed Consolidated Financial Statements

3

Cordia Bancorp Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended June 30,
(dollars in thousands)	2014			2013
Cash flows from operating activities:
Net income (loss)	$	(554	)	$	482
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Net amortization of premium on investment securities		109			73
Net amortization of acquisition accounting adjustments		(192	)		(618	)
Depreciation		140			140
Provision for loan losses		229			134
OREO impairment		2			-
Stock compensation		32			30
Net change in loans held for sale		-			28,949
Changes in assets and liabilities:
Increase in accrued interest receivable		(175	)		(713	)
Increase (decrease) in other assets		223			(49	)
Decrease (increase) in accrued expenses and other liabilities		2,419			(131	)
Net cash provided by operating activities		2,233			28,297
Cash flows from investing activities:
Purchase of securities available for sale		(30,310	)		(6,128	)
Purchase of securities held to maturity		(7,686	)		-
(Issuance) redemptions of restricted securities, net		(451	)		22
Proceeds from sales, maturities, and paydowns of securities available for sale		8,855			2,181
Proceeds from payments/maturities of securities held to maturity		597			-
Net increase in loans		(30,430	)		(55,609	)
Purchase of premises and equipment		(182	)		(31	)
Net cash used in investing activities		(59,607	)		(59,565	)
Cash flows from financing activities:
Proceeds from sale of stock, net		14,204			(207	)
Net increase in demand savings, interest-bearing checking and money market deposits		17,379			11,940
Net increase in time deposits		16,982			39,076
Proceeds from FHLB advances		10,000			-
Net cash provided by investing activities		58,565			50,809
Net increase in cash and cash equivalents		1,191			19,541
Cash and cash equivalents, beginning of period		13,984			11,981
Cash and cash equivalents, end of period	$	15,175		$	31,522
Supplemental disclosure of cash flow information
Cash payments for interest	$	957		$	1,013
Supplemental disclosure of noninvesting activities
Fair value adjustments for securities	$	(81	)	$	(280	)

See Notes to the Condensed Consolidated Financial Statements

4

Notes to Condensed Consolidated Financial Statements

Note 1. Organization and Summary of Significant Accounting Policies

Organization

Cordia Bancorp Inc. (“Company” or “Cordia”) was incorporated in 2009 by a team of former bank CEOs, directors and advisors seeking to invest in undervalued community banks in the Mid-Atlantic and Southeast. The Company was approved as a bank holding company by the Board of Governors of the Federal Reserve in November 2010 and granted the authority to purchase a majority interest in Bank of Virginia (“Bank” or “BVA”) at that time.

On December 10, 2010, Cordia purchased $10.3 million of BVA’s common stock, resulting in the ownership of 59.8% of the outstanding shares. On August 28, 2012, Cordia purchased an additional $3.0 million of BVA common stock.

On March 29, 2013, the Company completed a share exchange with the Bank resulting in the Bank becoming a wholly owned subsidiary of the Company. Under the terms of the Agreement and Plan of Share Exchange between the Company and the Bank, each outstanding share of the Bank’s common stock owned by persons other than the Company were exchanged for 0.664 of a share of the Company’s common stock. Shares of the Company’s stock are listed on the Nasdaq Stock Market under the symbol “BVA”. The Company has owned 100.0% of the Bank’s shares since the completion of the exchange.

Cordia’s principal business is the ownership of BVA. Because Cordia does not have any business activities separate from the operations of BVA, the information in this document regarding the business of Cordia reflects the activities of Cordia and BVA on a consolidated basis. References to “we” and “our” in this document refer to Cordia and BVA, collectively.

The Bank was organized under the laws of the Commonwealth of Virginia to engage in a general banking business serving the communities in and around the Richmond, Virginia metropolitan area. The Bank commenced regular operations on January 12, 2004, and is a member of the Federal Reserve System, Federal Deposit Insurance Corporation and the Federal Home Loan Bank of Atlanta. The Bank is subject to the regulations of the Federal Reserve System and the State Corporation Commission of Virginia. Consequently, it undergoes periodic examinations by these regulatory authorities.

Basis of Presentation

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and prevailing practices within the financial services industry for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required for complete financial statements and prevailing practices within the banking industry. Operating results for the three months and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for any future periods or for the year ending December 31, 2014. In the opinion of management, all adjustments (comprising only normal, recurring accruals) necessary for a fair presentation of the results of the interim periods have been included. Certain reclassifications have been made to prior period amounts, as necessary, to conform to the current period presentation. The Company has evaluated subsequent events through the date of the issuance of its financial statements.

These statements should be read in conjunction with the financial statements and accompanying notes included in the Company’s 2013 Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on March 26, 2014.

Principles of Consolidation

The accompanying condensed consolidated financial statements include all accounts of the Company and the Bank. All material intercompany balances and transactions have been eliminated in consolidation.

Summary of Significant Accounting Policies

We provide a summary of our significant accounting policies in our 2013 Form 10-K under “Note 1 – Organization and Summary of Significant Accounting Policies”. There have been no significant changes to these policies during 2014.

5

Recent Accounting Pronouncements

In January 2014, the FASB issued ASU 2014-01, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force).” The amendments in this ASU permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this ASU should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-01 to have a material impact on its consolidated financial statements.

In January 2014, the FASB issued ASU 2014-04, “Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” The amendments in this ASU clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The Company does not expect the adoption of ASU 2014-04 to have a material impact on its consolidated financial statements.

In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” The amendments in this ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results and include disposals of a major geographic area, a major line of business, or a major equity method investment. The new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. Additionally, the new guidance requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The amendments in the ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-08 to have a material impact on its consolidated financial statements.

In June 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606”. This ASU applies to any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The guidance supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition”, most industry-specific guidance, and some cost guidance included in Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts”. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To be in alignment with the core principle, an entity must apply a five step process including: identification of the contract(s) with a customer, identification of performance obligations in the contract(s), determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue when (or as) the entity satisfies a performance obligation. Additionally, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer have also been amended to be consistent with the guidance on recognition and measurement. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company does not expect the adoption of ASU 2014-09 to have a material impact on its consolidated financial statements.

6

In June 2014, the FASB issued ASU No. 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures”. This ASU aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. The new guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. The amendments in the ASU also require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. Additional disclosures will be required for the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The amendments in this ASU are effective for the first interim or annual period beginning after December 15, 2014; however, the disclosure for transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. Early adoption is not permitted. The Company does not expect the adoption of ASU 2014-11 to have a material impact on its consolidated financial statements.

In June 2014, the FASB issued ASU No. 2014-12, “Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. The new guidance applies to reporting entities that grant employees share-based payments in which the terms of the award allow a performance target to be achieved after the requisite service period. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Existing guidance in “Compensation – Stock Compensation (Topic 718)”, should be applied to account for these types of awards. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted and reporting entities may choose to apply the amendments in the ASU either on a prospective or retrospective basis. The Company does not expect the adoption of ASU 2014-12 to have a material impact on its consolidated financial statements.

Note 2. Business Combination

On December 10, 2010, the Company purchased 1,355,263 newly issued shares of the common stock of the Bank of Virginia (“BVA”), which gave it a 59.8% ownership interest. In accordance with ASC 805-10, this transaction is considered a business combination. Under the acquisition method of accounting, the assets and liabilities of the Bank were marked to fair value and goodwill was recorded for the excess of consideration paid over net fair value received. Based on the consideration paid and the fair value of the assets received and the liabilities assumed, goodwill of $5.9 million was recorded. Goodwill was determined to be impaired in its entirety during the fourth quarter of 2011. In addition to goodwill, other assets and liabilities of the Bank of Virginia were marked to their respective fair value as of December 10, 2010.

These estimated fair values differed substantially in some cases from the carrying amounts of the assets and liabilities reflected in the financial statements of BVA which, in most cases were valued at historical cost. Subsequent to that date, the fair value adjustments were amortized over the expected life of the related asset or liability or otherwise adjusted as required by GAAP.

Interest income is impacted by the accretion of the fair value discount on the loan portfolio as well as the accretion of the accretable discount on loans acquired with deteriorated credit quality. Interest income is also impacted by the change in accretion on the investment securities that is the result of the reset of the amortized book value amount to the fair value as of the day of the investment. Interest expense is impacted by the amortization of the premiums on time deposits and the FHLB advances. Net interest income is impacted by the combination of all of these items.

In previous periods, the provision for loan losses was significantly impacted by these acquisition accounting adjustments. The credit risk associated with the loan portfolio was reflected in the fair value determination as of the day of the investment by Cordia. Accordingly, on the day of the investment, there was no allowance for loan losses related to the purchased loans on the balance sheet of Cordia, while there was a significant allowance for loan losses on the balance sheet of BVA. The level of impact of these purchase accounting adjustments on the provision for loan losses and indirectly on interest income has declined considerably in recent periods.

Non-interest income is impacted by the gain or loss on the sale of investment securities. Non-interest expense is impacted by the depreciation adjustment that is the result of a fair value discount recorded on certain branch locations, rent adjustment related to certain lease commitments being above market as of the day of the investment; and amortization of the core deposit intangible.

7

On March 29, 2013, the minority shareholders of BVA exchanged their common shares in the Bank for common shares of Cordia. For each share of BVA exchanged, 0.664 shares of Cordia were received. In connection with the exchange, BVA became a wholly-owned subsidiary of Cordia.

In addition, the increased ownership percentage of BVA by Cordia has impacted the accounting of both entities. All of Cordia’s purchase accounting adjustments are now recorded in the BVA financial statements and the Cordia financial statements no longer reflect adjustments for non-controlling interest.

The amortization of the acquisition accounting adjustments had the following impact on the financial statements:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2014			2013			2014			2013
Loans	$	68		$	351		$	159		$	1,059
Allowance for loan losses		-			-			-			(577	)
Premises and equipment		2			2			4			4
Core deposit intangible		(9	)		(9	)		(18	)		(18	)
Time deposits		-			49			-			104
Building lease obligations		23			23			47			46
Net impact to net income	$	84		$	416		$	192		$	618

Note 3. Earnings Per Share

Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance.

Options to purchase 136 thousand shares of the Company’s common stock were not included in the computation of earnings per share because the effect would have been anti-dilutive due to loss in 2014.

The calculation for basic and diluted earnings per common share for the three months and six months ended June 30, 2014 and 2013 are as follows:

	Three months ended June 30,					Six months ended June 30,
(dollars in thousands)	2014			2013		2014			2013
Net income (loss) attributable to Company	$	(270	)	$	261	$	(554	)	$	482
Weighted average basic shares outstanding		3,017,772			2,764,090		2,898,047			2,431,019
Basic income (loss) per common share	$	(0.09	)	$	0.09	$	(0.19	)	$	0.20
Weighted average dilutive shares outstanding		3,017,772			2,775,802		2,898,047			2,444,923
Diluted income (loss) per common share	$	(0.09	)	$	0.09	$	(0.19	)	$	0.20

For the periods ended June 30, 2014 and 2013, 578,125 shares of unvested Common Stock were excluded from the computation of basic and diluted earnings per common share as these are performance based, nonvoting shares deemed more unlikely, than likely, to vest. All other vested and non-vested restricted common shares, which carry all rights and privilege of a stockholder with respect to the stock, including the right to vote, were included in the per common share calculation.

8

Note 4. Securities

Our investment portfolio consists of U.S. agency debt and agency guaranteed mortgage-backed securities. Our investment security portfolio includes securities classified as available for sale as well as securities classified as held to maturity. We classify securities as available for sale or held to maturity based on our investment strategy and management’s assessment of our intent and ability to hold the securities until maturity. The total securities portfolio (excluding restricted securities) was $67.7 million at June 30, 2014 as compared to $39.3 million at December 31, 2013. At June 30, 2014, the securities portfolio consisted of $45.8 million of securities available for sale, at fair value and $21.8 million of securities held to maturity, at amortized cost.

The table below presents the amortized cost, gross unrealized gains and losses, and fair value of securities available for sale at June 30, 2014 and December 31, 2013.

	June 30, 2014
	Amortized		Gross Unrealized					Estimated
(dollars in thousands)	Cost		Gains		Losses			Fair Value
U.S. Government agencies	$	3,502	$	-	$	(28	)	$	3,474
Agency guaranteed mortgage-backed securities		42,463		69		(171	)		42,361
Total	$	45,965	$	69	$	(199	)	$	45,835

	December 31, 2013
	Amortized		Gross Unrealized					Estimated
(dollars in thousands)	Cost		Gains		Losses			Fair Value
U.S. Government agencies	$	7,038	$	56	$	(53	)	$	7,041
Agency guaranteed mortgage-backed securities		17,578		10		(62	)		17,526
Total	$	24,616	$	66	$	(115	)	$	24,567

The table below presents the carry value, gross unrealized gains and losses, and fair value of securities held to maturity at June 30, 2014 and December 31, 2013.

	June 30, 2014
	Carry		Gross Unrealized					Estimated
(dollars in thousands)	Value		Gains		Losses			Fair Value
Agency guaranteed mortgage-backed securities	$	21,839	$	141	$	(21	)	$	21,959

			December 31, 2013
			Gross Unrealized					Estimated
(dollars in thousands)	Carry Value		Gains		Losses			Fair Value
Agency guaranteed mortgage-backed securities	$	14,753	$	-	$	(156	)	$	14,597

9

The amortized cost and fair value of securities available for sale as of June 30, 2014, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. They are as follows:

(Dollars in thousands)	Amortized Cost		Estimated Fair Value
Over five years within ten years	$	513	$	515
Over ten years		45,452		45,320
Total	$	45,965	$	45,835

The carrying value and fair value of securities held to maturity as of June 30, 2014, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. They are as follows:

(Dollars in thousands)	Carry Value		Estimated Fair Value
Over five years within ten years	$	3,727	$	3,776
Over ten years		18,112		18,183
Total	$	21,839	$	21,959

As of June 30, 2014, the portfolio is concentrated in average maturities of over ten years, although a substantial majority of recently purchased securities have effective durations much shorter than ten years.. The portfolio is available to support liquidity needs of the Company. The Company sold no available for sale securities during the three months ended June 30, 2014. During the six months ended June 30, 2014, the Company sold $8.9 million available for sale securities and recognized a gain of $64 thousand in noninterest income. There were no sales of securities available for sale during the six months ended June 30, 2013.

Unrealized losses on investments at June 30, 2014 and December 31, 2013 were as follows:

	June 30, 2014
	Less than 12 Months					12 Months or Longer					Total
(dollars in thousands)	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
U.S. Government agencies	$	3,474	$	(28	)	$	-	$	-		$	3,474	$	(28	)
Agency guaranteed mortgage-backed securities		30,660		(173	)		968		(19	)		31,628		(192	)
Total	$	34,134	$	(201	)	$	968	$	(19	)	$	35,102	$	(220	)

	December 31, 2013
(dollars in thousands)	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
U.S. Government agencies	$	3,697	$	(53	)	$	-	$	-		$	3,697	$	(53	)
Agency guaranteed mortgage-backed securities		17,336		(178	)		2,914		(40	)		20,250		(218	)
Total	$	21,033	$	(231	)	$	2,914	$	(40	)	$	23,947	$	(271	)

10

All of the unrealized losses are attributable to increases in interest rates and not to credit deterioration. Currently, the Company believes that it is probable that it will be able to collect all amounts due according to the contractual terms of the investments. Because the decline in market value is attributable to changes in interest rates and not to credit quality and because it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2014.

Investment securities with a combined market value of $3.3 million and $2.1 million were pledged to secure public funds with the State of Virginia at June 30, 2014 and December 31, 2013, respectively. In addition, we had $2.5 million and $2.9 million in investment securities pledged to cover a relationship with our main correspondent bank at June 30, 2014 and December 31, 2013, respectively. We had $6.4 million of securities pledged to secure FHLB advances at June 30, 2014. There were no securities pledged to the FHLB at December 31, 2013.

Note 5.      Loans, Allowance for Loan Losses and Credit Quality

Loans by Loan Class

The Bank categorizes its loan receivables into four main segments which are commercial real estate loans, commercial and industrial loans, guaranteed student loans, and consumer loans. Each category of loan has a different level of credit risk. Real estate loans are generally safer than loans secured by other assets because the value of the underlying collateral is generally ascertainable and does not fluctuate as much as other assets. Owner occupied commercial real estate loans are generally the least risky type of commercial real estate loan. Non-owner occupied commercial real estate loans and construction and development loans contain more risk. Commercial loans, which can be secured by real estate or other assets, or which can be unsecured, are generally more risky than commercial real estate loans. Guaranteed student loans are guaranteed by the U.S. Department of Education for approximately 98% of the principal and interest. Consumer loans may be secured by residential real estate, automobiles or other assets or may be unsecured. Those secured by residential real estate are the least risky and those that are unsecured are the most risky type of consumer loans. Any type of loan which is unsecured is generally more risky than a secured loan. These levels of risk are general in nature, and many factors including the creditworthiness of the borrower or the particular nature of the secured asset may cause any type of loan to be more or less risky than another. In the commercial real estate category of the loan portfolio the sub-segments are acquisition-development-construction, non-owner occupied and owner occupied. In the consumer category of the loan portfolio the sub-segments are residential real estate, home equity lines of credit and other. Management has not further divided its eight sub-segments into classes. This provides Management and the Board with sufficient information to evaluate the risks within the Bank’s portfolio.

The table below presents loans by sub-segment at June 30, 2014 and December 31, 2013.

(dollars in thousands)	June 30, 2014			December 31, 2013
Commercial Real Estate:
Acquisition, development and construction	$	2,263		$	3,475
Non-owner occupied		35,070			28,606
Owner occupied		53,576			50,500
Commercial and industrial		24,605			21,085
Guaranteed student loans		70,624			55,427
Consumer:
Residential mortgage		8,508			7,156
HELOC		9,105			7,250
Other		534			508
Total loans		204,285			174,007
Allowance for loan losses		(1,407	)		(1,489	)
Total loans, net of allowance for loan losses	$	202,878		$	172,518

11

Loans Acquired with Evidence of Deterioration in Credit Quality

Acquired in the acquisition of Bank of Virginia in 2010, and included in the table above, are loans acquired with evidence of deterioration in credit quality. These loans are accounted for under the guidance ASC 310-30. Information related to these loans is as follows:

(dollars in thousands)	June 30, 2014			December 31, 2013
Contract principal balance	$	7,667		$	8,689
Accretable discount		(52	)		(62	)
Nonaccretable discount		(5	)		(61	)
Book value of loans	$	7,610		$	8,566

A discount is applied to these loans such that the carrying amount approximates the cash flows expected to be received from the borrower or from the liquidation of collateral. Due to a high level of uncertainty regarding the timing and amount of these cash flows in December 2010, Management initially considered the entire discount to be nonaccretable. However, due to improvement in the status of some credits, the majority of the discount was subsequently transferred to accretable and is amortized as a yield adjustment over the lives of the individual loans. Cash flows received on loans with a nonaccretable discount are applied on a cost recovery method, whereby payments are applied first to the loan balance. When the loan balance is fully recovered, payments are then applied to income. Any future reductions in carrying value as a result of deteriorating credit quality require an allowance for loan losses related to these loans.

A summary of changes to the accretable and nonaccretable discounts during the six months ended June 30, 2014 and 2013 is as follows:

	Six Months Ending June 30.
	2014						2013
(dollars in thousands)	Accretable Discount			Nonaccretable Discount			Accretable Discount			Nonaccretable Discount
Beginning balance	$	62		$	61		$	476		$	165
Charge-offs related to loans covered by ASC 310-30		-			(56	)		-			-
Transfer to accretable discount		-			-			104			(104	)
Discount accretion		(10	)		-			(326	)		-
Ending balance	$	52		$	5		$	254		$	61

Credit Quality Indicators

Credit risk ratings reflect the current risk of default and/or loss for a given asset. The risk of loss is driven by factors intrinsic to the borrower and the unique structural characteristics of the loan. The credit risk rating begins with an analysis of the borrower’s credit history, ability to repay the debt as agreed, use of proceeds, and the value and stability of the value of the collateral securing the loan. The attributes ordinarily considered when reviewing a borrower are as follows:

· industry/industry segment;

· position within industry;

· earnings, liquidity and operating cash flow trends;

· asset and liability values;

· financial flexibility/debt capacity;

· management and controls; and

· quality of financial reporting.

12

The unique structural characteristics ordinarily considered when reviewing a loan are as follows:

· credit terms/loan documentation;

· guaranty/third party support;

· collateral; and

· loan maturity.

On a quarterly basis, the process of estimating the Allowance for Loan Loss begins with Management’s review of the risk rating assigned to individual credits. Through this process, loans adversely risk rated are evaluated for impairment based on ASC 310-40. The following is a summary of the risk rating definitions the Company uses to assign a risk grade to each loan within the portfolio:

Grade 1 - Highest Quality	Loans to persons and businesses with unquestionable financial strength and character that carry extremely low probabilities of default. Balance sheets and cash flow are extremely strong relative to the magnitude of debt. This rating would be analogous to the highest investment grade ratings.
Grade 2 - Above Average Quality	Loans to persons and business entities with unquestioned character that carry low probabilities of default. Borrowers have strong, stable earnings and financial condition.
Grade 3 - Satisfactory	Loans to persons and businesses with acceptable financial condition that carry average probabilities of default. Borrower’s exhibit adequate cash flow to service debt and have acceptable levels of leverage.
Grade 4 - Pass	Loans to persons and businesses with a lack of stability in the primary source of repayment or temporary weakness in their balance sheet or earnings. These loans carry above average probabilities of default. These borrowers generally have higher leverage and less liquidity than loans rated 3-Satisfactory.
Grade 5- Special Mention	Loans to borrowers that exhibit potential credit weakness or a downward trend that warrant additional supervision. While potentially weak, the loan is currently marginally acceptable and no loss of principal or interest is envisioned.
Grade 6 – Substandard	Borrowers with one or more well defined weaknesses that jeopardize the orderly liquidation of the debt. Normal repayment from the borrower is in jeopardy, although no loss of principal is envisioned. Possibility of loss or protracted workout exists if immediate corrective action is not taken.
Grade 7 – Doubtful	Loans with all the weaknesses inherent in a Substandard classification, with the added provision that the weaknesses make collection of debt in full highly questionable and improbable, based on currently existing facts, conditions, and values. Serious problems exist to the point where a partial loss of principal is likely.
Grade 8 – Loss	Borrower is deemed incapable of repayment of the entire principal. A charge-off is required for the portion of principal management has deemed it will not be repaid.

13

The following is the distribution of loans by credit quality and segment as of June 30, 2014 and December 31, 2013:

	June 30, 2014
(dollars in thousands)	Commercial Real Estate										Consumer
Credit quality class	Acq-Dev Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
1 Highest quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
2 Above average quality		-		2,018		3,132		2,015		70,624		49		961		45		78,844
3 Satisfactory		229		16,030		28,538		12,921		-		4,133		4,746		403		67,000
4 Pass		781		15,405		18,394		7,557		-		4,016		2,354		86		48,593
5 Special mention		-		126		-		81		-		124		319		-		650
6 Substandard		270		-		259		786		-		-		273		-		1,588
7 Doubtful		-		-		-		-		-		-		-		-		-
		1,280		33,579		50,323		23,360		70,624		8,322		8,653		534		196,675
Loans acquired with deteriorating credit quality		983		1,491		3,253		1,245		-		186		452		-		7,610
Total loans	$	2,263	$	35,070	$	53,576	$	24,605	$	70,624	$	8,508	$	9,105	$	534	$	204,285
	December 31, 2013
(dollars in thousands)	Commercial Real Estate										Consumer
Credit quality class	Acq-Dev Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
1 Highest quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
2 Above average quality		-		2,078		2,966		2,170		55,427		73		205		80		62,999
3 Satisfactory		325		10,563		25,264		8,290		-		3,965		3,541		350		52,298
4 Pass		1,500		12,990		14,606		8,128		-		2,710		2,243		78		42,255
5 Special mention		299		1,449		3,486		268		-		203		630		-		6,335
6 Substandard		267		-		336		759		-		15		177		-		1,554
7 Doubtful		-		-		-		-		-		-		-		-		-
		2,391		27,080		46,658		19,615		55,427		6,966		6,796		508		165,441
Loans acquired with deteriorating credit quality		1,084		1,526		3,842		1,470		-		190		454		-		8,566
Total loans	$	3,475	$	28,606	$	50,500	$	21,085	$	55,427	$	7,156	$	7,250	$	508	$	174,007

14

A summary of the balances of loans outstanding by days past due, including accruing and non-accruing loans by portfolio class as of June 30, 2014 and December 31, 2013 is as follows:

	June 30, 2014
	Commercial Real Estate										Consumer
(dollars in thousands)	Acq-Dev Construction		Non-owner Occupied		Owner Occupied		Commercial  and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
30 - 59 days	$	-	$	-	$	-	$	93	$	3,803	$	-	$	-	$	-	$	3,896
60 - 89 days		-		-		-		-		5,565		-		-		-		5,565
> 90 days		548		-		568		93		10,370		44		-		-		11,623
Total past due		548		-		568		186		19,738		44		-		-		21,084
Current		1,715		35,070		53,008		24,419		50,886		8,464		9,105		534		183,201
Total loans	$	2,263	$	35,070	$	53,576	$	24,605	$	70,624	$	8,508	$	9,105	$	534	$	204,285
> 90 days still accruing	$	-	$	-	$	-	$	-	$	10,370	$	-	$	-	$	-	$	10,370
	December 31, 2013
	Commercial Real Estate										Consumer
(dollars in thousands)	Acq-Dev Construction		Non-owner Occupied		Owner Occupied		Commercial  and Industrial		Guaranteed  Student Loans		Residential Mortgage		HELOC		Other		Total
30 - 59 days	$	-	$	-	$	-	$	-	$	5,044	$	54	$	-	$	-	$	5,098
60 - 89 days		-		-		-		-		2,268		15		-		-		2,283
> 90 days		633		-		2,051		632		18,387		44		-		-		21,747
Total past due		633		-		2,051		632		25,699		113		-		-		29,128
Current		2,842		28,606		48,449		20,453		29,728		7,043		7,250		508		144,879
Total loans	$	3,475	$	28,606	$	50,500	$	21,085	$	55,427	$	7,156	$	7,250	$	508	$	174,007
> 90 days still accruing	$	-	$	-	$	-	$	-	$	18,387	$	-	$	-	$	-	$	18,387

Non-accrual Loans

Loans are placed on nonaccrual status when Management believes the collection of the principal and interest is doubtful. A delinquent loan is generally placed in nonaccrual status when:

· principal and/or interest is past due for 90 days or more, unless the loan is well-secured or in the process of collection;

· the financial strength of the borrower or a guarantor has materially declined;

· collateral value has declined; or

· other facts would make the repayment in full of principal and interest unlikely.

Loans placed on nonaccrual status are reported to the Board at its next regular meeting. When a loan is placed on nonaccrual, all interest which has been accrued is charged back against current earnings as a reduction in interest income, which adversely affects the yield on loans in the period of reversal. No additional interest is accrued on the loan balance until the collection of both principal and interest becomes reasonably certain.

Loans placed on non-accrual status may, at the lenders discretion, be returned to accrual status after:

· payments are received for a reasonable period in accordance with the loan documents (typically for (6) months), and any doubt as to the loan's full collectability has been removed; or

· the troubled loan is restructured and, evidenced by a credit evaluation of the borrower's financial condition and the prospects for full payment are good.

When a loan is returned to accrual status after restructuring, the pre-restructuring risk rating is maintained until a satisfactory payment history is re-established. Returning non-accrual loans to an accrual status requires the prior written approval of the Chief Credit Officer.

15

A summary of non-accrual loans by portfolio class is as follows:

(dollars in thousands)	June 30, 2014		December 31, 2013
Commercial Real Estate:
Acquisition, development and construction	$	548	$	633
Owner occupied		988		2,051
Commercial and industrial		668		858
Consumer:
Residential mortgage		44		59
HELOC		324		333
Total non-accrual loans	$	2,572	$	3,934
Non-accrual troubled debt restructurings included above	$	994	$	119

Impaired Loans

All loans that are rated Doubtful are assessed as impaired based on the expectation that the full collection of principal and interest is in doubt. All loans that are rated Substandard or are expected to be downgraded to Substandard, require additional analysis to determine if a specific reserve under ASC 310-40 is required. All loans that are rated Special Mention are presumed not to be impaired. However, Special Mention rated loans are typically evaluated for the following adverse characteristics that may indicate further analysis is warranted before completing an assessment of impairment:

· a loan is 60 days or more delinquent on scheduled principal or interest;

· a loan is presently in an unapproved over-advanced position;

· a loan is newly modified; or

· a loan is expected to be modified.

The following information is a summary of the Company’s policies pertaining to impaired loans:

A loan is deemed impaired when it qualifies for a risk rating of Substandard or worse. Factors impairing repayment might include: inadequate repayment capacity, severe erosion of equity, likely reliance on non-primary source of repayment, guarantors with limited resources, and obvious material deterioration in borrower’s financial condition. The possibility of loss or protracted workout exists if immediate corrective action is not taken.

Once deemed impaired, the loan is then analyzed for the extent of the impairment. Impairment is the difference between the principal balance of the loan and (i) the discounted cash flows of the borrower or (ii) the fair market value of the collateral less the costs involved with liquidation (i.e., real estate commissions, attorney costs, etc.). This difference is then reflected as a component in the allowance for loan loss as a specific reserve.

Certain loans were identified and individually evaluated for impairment at June 30, 2014. A number of these impaired loans were not charged with a valuation allowance due to Management’s judgment that the cash flows from the underlying collateral or equity available from guarantors was sufficient to recover the Company’s entire investment, while one loan experienced collateral deterioration and supplemental specific reserve was added. The results of those analyses are presented in the following tables.

16

The following information is a summary of related impaired loans, excluding loans acquired with deteriorating credit quality, presented by portfolio class as of June 30, 2014:

(dollars in thousands)	Recorded Investment		Unpaid Principal		Related Allowance		Average Recorded Investment		Interest Recorded
With no related allowance recorded:
Commercial Real Estate:
Acquisition, development and construction	$	270	$	270	$	-	$	269	$	8
Non-owner occupied		1,342		1,342		-		1,648		44
Owner occupied		259		259		-		259		-
Commercial and industrial		734		734		-		667		3
Consumer:
Residential mortgage		-		-		-		-		-
HELOC		273		273		-		274		6
Other		-		-		-				-
Total	$	2,878	$	2,878	$	-	$	3,117	$	61
With an allowance recorded:
Commercial Real Estate:
Acquisition, development and construction	$	-	$	-	$	-	$	-	$	-
Non-owner occupied		-		-		-		-		-
Owner occupied		-		-		-		-		-
Commercial and industrial		52		52		35		52		-
Consumer:
Residential mortgage		-		-		-		-		-
HELOC		-		-		-		-		-
Other		-		-		-		-		-
Total	$	52	$	52	$	35	$	52	$	-

17

The following information is a summary of related impaired loans, excluding loans acquired with deteriorating credit quality, presented by portfolio class as of December 31, 2013:

(dollars in thousands)	Recorded Investment		Unpaid Principal		Related Allowance		Average Recorded Investment		Interest Recorded
With no related allowance recorded:
Commercial Real Estate:
Acquisition, development and construction	$	267	$	267	$	-	$	267	$	19
Non-owner occupied		1,352		1,352		-		1,652		83
Owner occupied		259		259		-		259		-
Commercial and industrial		759		759		-		759		44
Consumer:
Residential mortgage		15		15		-		15		5
HELOC		177		177		-		177		8
Other		-		-		-		-		-
Total	$	2,829	$	2,829	$	-	$	3,129	$	159
With an allowance recorded:
Commercial Real Estate:
Acquisition, development and construction	$	-	$	-	$	-	$	-	$	-
Non-owner occupied		-		-		-		-		-
Owner occupied		-		-		-		-		-
Commercial and industrial		-		-		-		-		-
Consumer:
Residential mortgage		-		-		-		-		-
HELOC		-		-		-		-		-
Other		-		-		-		-		-
Total	$	-	$	-	$	-	$	-	$	-

Loans with deteriorated credit quality acquired as part of the Bank of Virginia acquisition are accounted for under the requirements of ASC 310-30. These loans are not considered impaired and not included in the table above.

18

Activity in the allowance for loan losses for the six months ended June 30, 2014 and June 30, 2013 is summarized below:

	Commercial Real Estate															Consumer
(dollars in thousands)	Acquisition, Development, Construction			Non-owner Occupied			Owner Occupied			Commercial and Industrial			Guaranteed Student Loans			Residential Mortgage		HELOC			Other			Total
Allowance for loan losses
Beginning balance, December 31, 2013	$	300		$	39		$	322		$	377		$	268		$	120	$	20		$	43		$	1,489
Charge-offs		(6	)		(114	)		-			(17	)		(265	)		-		-			-			(402	)
Recoveries		3			47			-			18			-			2		2			19			91
Net Charge-offs (recoveries)		(3	)		(67	)		-			1			(265	)		2		2			19			(311	)
Provision (recovery)		(101	)		149			(158	)		131			191			63		(11	)		(35	)		229
Ending balance, June 30, 2014	$	196		$	121		$	164		$	509		$	194		$	185	$	11		$	27		$	1,407
	Commercial Real Estate															Consumer
(dollars in thousands)	Acquisition, Development, Construction			Non-owner Occupied			Owner Occupied			Commercial and Industrial			Guaranteed Student Loans			Residential Mortgage		HELOC			Other			Total
Allowance for loan losses
Beginning balance, December 31, 2012	$	229		$	231		$	350		$	782		$	-		$	50	$	457		$	11		$	2,110
Charge-offs		-			-			(289	)		-			(39	)		-		(365	)		(8	)		(701	)
Recoveries		1			-			-			18			-			-		-			-			19
Net Charge-offs (recoveries)		1			-			(289	)		18			(39	)		-		(365	)		(8	)		(682	)
Provision (recovery)		(107	)		57			483			(546	)		295			2		(51	)		1			134
Ending balance, June 30, 2013	$	123		$	288		$	544		$	254		$	256		$	52	$	41		$	4		$	1,562

19

A summary of the allowance for loan losses by portfolio segment and impairment evaluation methodology as of June 30, 2014 and December 31, 2013 is as follows:

	Commercial Real Estate										Consumer
(dollars in thousands)	Acquisition, Development, Construction		Non-owner Occupied		Owner Occupied		Commercial    and    Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
Allowance for loan losses
Individually evaluated for impairment	$	-	$	-	$	-	$	35	$	-	$	-	$	-	$	-	$	35
Collectively evaluated for impairment		156		121		164		474		194		185		11		27		1,332
Loans acquired with deteriorated credit quality		40		-		-		-		-		-		-		-		40
Ending balance, June 30, 2014	$	196	$	121	$	164	$	509	$	194	$	185	$	11	$	27	$	1,407
Gross loan balances
Individually evaluated for impairment	$	270	$	1,342	$	259	$	786	$	-	$	-	$	273	$	-	$	2,930
Collectively evaluated for impairment		1,010		32,237		50,064		22,574		70,624		8,322		8,380		534		193,745
Loans acquired with deteriorated credit quality		983		1,491		3,253		1,245		-		186		452		-		7,610
Ending balance, June 30, 2014	$	2,263	$	35,070	$	53,576	$	24,605	$	70,624	$	8,508	$	9,105	$	534	$	204,285
	Commercial Real Estate										Consumer
(dollars in thousands)	Acquisition, Development, Construction		Non-owner Occupied		Owner Occupied		Commercial  and Industrial		Guaranteed  Student  Loans		Residential Mortgage		HELOC		Other		Total
Allowance for loan losses for loans
Individually evaluated for impairment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Collectively evaluated for impairment		260		39		128		377		268		120		20		43		1,255
Loans acquired with deteriorated credit quality		40		-		194		-		-		-		-		-		234
Ending balance, December 31, 2013	$	300	$	39	$	322	$	377	$	268	$	120	$	20	$	43	$	1,489
Gross loan balances
Individually evaluated for impairment	$	267	$	1,352	$	259	$	759	$	-	$	15	$	177	$	-	$	2,829
Collectively evaluated for impairment		2,124		25,728		46,399		18,856		55,427		6,951		6,619		508		162,612
Loans acquired with deteriorated credit quality		1,084		1,526		3,842		1,470		-		190		454		-		8,566
Ending balance, December 31, 2013	$	3,475	$	28,606	$	50,500	$	21,085	$	55,427	$	7,156	$	7,250	$	508	$	174,007

Troubled Debt Restructurings

A modification is classified as a troubled debt restructuring (“TDR”) if both of the following exist: (1) the borrower is experiencing financial difficulty and (2) the Company has granted a concession to the borrower.  The Company determines that a borrower may be experiencing financial difficulty if the borrower is currently delinquent on any of its debt, or if the Company is concerned that the borrower may not be able to perform in accordance with the current terms of the loan agreement in the foreseeable future.  Many aspects of the borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty, particularly as it relates to commercial borrowers due to the complex nature of the loan structure, business/industry risk and borrower/guarantor structures.  Concessions may include the reduction of an interest rate at a rate lower than current market rate for a new loan with similar risk, extension of the maturity date, reduction of accrued interest, or principal forgiveness.  When evaluating whether a concession has been granted, the Company also considers whether the borrower has provided additional collateral or guarantors and whether such additions adequately compensate the Company for the restructured terms, or if the revised terms are consistent with those currently being offered to new loan customers.  The assessments of whether a borrower is experiencing (or is likely to experience) financial difficulty and whether a concession has been granted is subjective in nature and management’s judgment is required when determining whether a modification is a TDR.

Although each occurrence is unique to the borrower and is evaluated separately, for all portfolio segments, TDRs are typically modified through reduction in interest rates, reductions in payments, changing the payment terms from principal and interest to interest only, and/or extensions in term maturity.

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During the three and six months ended June 30, 2014, two loans were modified in troubled debt restructurings and one previous troubled debt restructured loan was paid off .. During the three and six months ended June 30, 2013, no loans were modified in troubled debt restructurings. At June 30, 2014 and December 31, 2013, six and five loans were classified as trouble debt restructuring, respectively. The principal balance outstanding relating to these was $2.8 million and $2.0 million at June 30, 2014 and December 31, 2013, respectively. Of these amounts, $1.8 million and $1.9 million were accruing, respectively. During the three and six months ended June 30, 2014 and 2013, no defaults occurred on loans modified as TDR’s in the preceding twelve months.

The number and outstanding recorded investment of loans entered into under the terms of a TDR, including modifications of acquired impaired loans, by type of concession granted, are set forth in the following tables:

	Three and Six Months Ended June 30, 2014
(dollars in thousands)	Number of loans		Rate modification		Term extension		Pre-modification recorded investment		Post-modification recorded investment
Commercial and industrial		1		-	$	512	$	512	$	495
Commercial real estate - owner occupied		1		-		595		595		425
Total		2		-	$	1,107	$	1,107	$	920

Note 6. Intangible Assets

In 2010, the Company acquired a majority interest in the Bank of Virginia. The Company recorded a core deposit intangible related to this acquisition of $249 thousand. This asset represents the estimated fair value of the core deposits and was determined based on the present value of future cash flows related to those deposits considering the industry standard “financial instrument” type present value methodology. The core deposit intangible is amortized over the estimated life of the deposits using the straight-line method. A summary of the three and six months ending June 30, 2014 activity in this account is as follows:

(dollars in thousands)
Balance at March 31, 2014	$	130
Amortization		(9	)
Balance at June 30, 2014	$	121
(dollars in thousands)
Balance at December 31, 2013	$	139
Amortization		(18	)
Balance at June 30, 2014	$	121

Amortization expense is expected to be approximately $36 thousand per year through 2016 and $30 thousand in 2017.

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Note 7. Fair Value Measurements

Fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practical to estimate the value is based upon the characteristics of the instruments and relevant market information. Financial instruments include cash, evidence of ownership in an entity, or contracts that convey or impose on an entity that contractual right or obligation to either receive or deliver cash for another financial instrument. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by a quoted market price if one exists.

The following presents the methodologies and assumptions used to estimate the fair value of the Company’s financial instruments. The information used to determine fair value is highly subjective and judgmental in nature and, therefore, the results may not be precise. Subjective factors include, among other things, estimates of cash flows, risk characteristics, credit quality, and interest rates, all of which are subject to change. Since the fair value is estimated as of the balance sheet date, the amounts that will actually be realized or paid upon settlement or maturity on these various instruments could be significantly different.

Financial Instruments with Book Value Equal to Fair Value

The book values of cash and due from banks, federal funds sold and purchased, interest receivable, and interest payable are considered to be equal to fair value as a result of the short-term nature of these items.

Securities

The fair value for securities available for sale and securities held to maturity is based on current market quotations, where available. If quoted market prices are not available, fair value has been based on the quoted price of similar instruments. Restricted securities are valued at cost which is also the stated redemption value of the shares.

Loans Held for Investment

The estimated value of loans held for investment is measured based upon discounted future cash flows using the current rates for similar loans, as well as assumptions related to credit risk.

Deposits

Deposits without a stated maturity, including demand, interest-bearing demand, and savings accounts, are reported at their carrying value in accordance with authoritative accounting guidance. No value has been assigned to the franchise value of these deposits. For other types of deposits with fixed maturities, fair value has been estimated by discounting future cash flows based on interest rates currently being offered on deposits with similar characteristics and maturities.

Borrowings and Other Indebtedness

Fair value has been estimated based on interest rates currently available to the Company for borrowings with similar characteristics and maturities.

Commitments to Extend Credit, Standby Letters of Credit, and Financial Guarantees

Fair values for off-balance-sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. At June 30, 2014, the fair value of loan commitments and standby letters of credit was deemed to be immaterial and therefore is not included.

Determination of Fair Value

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the Fair Value Measurements and Disclosure topic of FASB ASC, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

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The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under market conditions depends on the facts and circumstances and requires the use of significant judgment.

Authoritative accounting literature specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy based on these two types of inputs are as follows:

Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets.

Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

Level 3 Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

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The carrying value and fair values of financial assets and liabilities are as follows:

			Fair Value Measurements at June 30, 2014
(dollars in thousands)	Carrying amount		Level 1		Level 2		Level 3		Fair Value
Assets:
Cash and cash equivalents	$	15,175	$	15,175	$	-	$	-	$	15,175
Securities available for sale		45,835		-		45,835		-		45,835
Securities held to maturity		21,839		-		21,959		-		21,959
Restricted securities		1,525		-		1,525		-		1,525
Net Loans held for investment		202,878		-		-		203,842		203,842
Interest receivable		1,830		-		1,830		-		1,830
Liabilities:
Demand deposits		24,883		-		24,883		-		24,883
Savings and interest-bearing demand deposits		76,044		-		76,044		-		76,044
Time deposits		144,266		-		144,918		-		144,918
FHLB Borrowings		20,000		-		19,747		-		19,747
Interest payable		150		-		150		-		150

			Fair Value Measurements at December 31, 2013
(dollars in thousands)	Carrying amount		Level 1		Level 2		Level 3		Fair Value
Assets:
Cash and cash equivalents	$	13,984	$	13,984	$	-	$	-	$	13,984
Securities available for sale		24,567		-		24,567		-		24,567
Securities held to maturity		14,753		-		14,597		-		14,597
Restricted securities		1,074		-		1,074		-		1,074
Loans held for investment		172,518		-		-		173,444		173,444
Interest receivable		1,655		-		1,655		-		1,655
Liabilities:
Demand deposits		22,845		-		22,845		-		22,845
Savings and interest-bearing demand deposits		60,685		-		60,685		-		60,685
Time deposits		127,284		-		127,966		-		127,966
FHLB Borrowings		10,000		-		9,656		-		9,656
Interest payable		143		-		143		-		143

The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements:

Securities available for sale

Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2).

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The following table presents the balances of financial assets measured at fair value on a recurring basis:

			Quoted Prices  in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(dollars in thousands)	Balance		(Level 1)		(Level 2)		(Level 3)
June 30, 2014
U. S. Government Agencies	$	3,474	$	-	$	3,474	$	-
Agency Guaranteed Mortgage-backed securities		42,361		-		42,361		-
December 31, 2013
U. S. Government Agencies	$	7,041	$	-	$	7,041	$	-
Agency Guaranteed Mortgage-backed securities		17,526		-		17,526		-

Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets.

The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements:

Impaired Loans

Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company using observable market data (Level 2). However, if the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Company because of marketability, then the fair value is considered Level 3. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’ financial statements if not considered significant. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Impaired loans allocated to the Allowance for Loan Losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Consolidated Statements of Operations. There was one impaired loan fair valued on a nonrecurring basis at June 30, 2014 and no impaired loans fair valued on a nonrecurring basis at December 31, 2013.

Other Real Estate Owned (OREO)

Other real estate owned (“OREO”) is measure at fair value less costs to sell, based on an appraisal conducted by an independent, licensed appraiser outside of the Company. If the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Company because of marketability, then the fair value is considered Level 3. OREO is measured at fair value on a nonrecurring basis. Any initial fair value adjustment is charged against the Allowance for Loan Losses. Subsequent fair value adjustments are recorded in the period incurred and included in other noninterest expense on the Consolidated Statements of Operations.

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The following tables summarize the Company’s assets that were measured at fair value on a nonrecurring basis:

			Quoted Prices  in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(dollars in thousands)	Balance		(Level 1)		(Level 2)		(Level 3)
June 30, 2014
Impaired loan	$	17	$	-	$	-	$	17
OREO	$	1,543	$	-	$	-	$	1,543
December 31, 2013
OREO	$	1,545	$	-	$	-	$	1,545

The following table presents qualitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at June 30, 2014 and December 31, 2013:

	June 30, 2014
(dollars in thousands)	Quantitative Information About Level 3 Fair Value Measurements
Description	Fair Value		Valuation Technique	Unobservable input	Range  (Weighted  Average)
Impaired loan - commercial and industrial	$	17	Contract review	Management discount based on underlying collateral characteristics and sales contract		(67	)%
Other real estate owned	$	1,543	Discounted appraised value	Discount for lack of marketability		6-29% (13)	%

	December 31, 2013
(dollars in thousands)	Quantitative Information About Level 3 Fair Value Measurements
Description	Fair Value		Valuation Technique	Unobservable input	Range  (Weighted  Average)
Other real estate owned	$	1,545	Discounted appraised value	Discount for lack of marketability		6-29% (14)	%

Note 8. Stock-Based Compensation

Stock-based compensation arrangements include stock options, restricted stock plans, performance-based awards, stock appreciation rights and employee stock purchase plans. ASC Topic 718 requires all share-based payments to employees to be valued using a fair value method on the date of grant and to be expensed based on that fair value over the applicable vesting period.

At the 2005 Annual Meeting, shareholders ratified approval of the Bank of Virginia 2005 Stock Option Plan (the “2005 Plan”) which made available up to 26,560 shares for potential grants of stock options. The Plan was instituted to encourage and facilitate investment in the common stock of the Bank by key employees and executives and to assist in the long-term retention of service by those executives. The Plan covers employees as determined by the Bank’s Board of Directors from time to time. Options under the Plan were granted in the form of incentive stock options.

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At the 2011 Annual Meeting, the Bank’s shareholders approved a new share-based compensation plan (Bank of Virginia 2011 Stock Incentive Plan or the “2011 Plan”). Under this plan, employees, officers and directors of the Bank or its affiliates are eligible to participate. The plan’s intent was to reward employees, officers and directors of the Bank or its affiliates for their efforts, to assist in the long-term retention of service for those who were awarded, as well as further align their interests with the Bank’s shareholders. At the 2014 Annual Meeting, Cordia shareholders approved an amendment to the 2011 Plan to increase the number of shares authorized for issuance by an additional 800,000 shares. There are 906,240 shares reserved under the 2011 Plan.

There were 20,000 Cordia stock options granted outside the plan prior to the share exchange in March 2013. In addition, there were 10,000 stock options and 12,500 restricted stock shares issued in September 2013 outside the plan as an inducement grant to a newly hired officer.

As of the share exchange on March 29, 2013, the 2005 and 2011 Plans were assumed by Cordia.

A summary of the Company’s option activity as of June 30, 2014 and changes during the period then ended are presented in the following table:

					Wgt. Avg.
			Wgt. Avg.		Remaining		Wgt. Avg.		Aggregate
			Exercise		Contractual		Grant Date		Intrinsic
As of 1/1/2014	Stock Options		Price		Life		Fair Value		Value
Outstanding		115,656	$	7.68	$	8.44	$	2.54	$	88
Vested		28,438	$	12.80	$	7.36	$	4.31		-
Nonvested		87,218	$	6.01	$	8.80	$	1.96	$	88
Period Activity
Issued		20,400	$	4.19		-	$	1.52		-
As of 6/30/2014
Outstanding		136,056	$	7.15		8.24	$	2.39	$	882
Vested		44,416	$	10.05		7.47	$	3.36	$	158
Nonvested		91,640	$	5.75		8.62	$	1.91	$	724

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								Wgt. Avg.
Outstanding as of June 30, 2014						Wgt. Avg.		Remaining
				Stock Options		Exercise		Contractual
Range of Exercise Prices				Outstanding		Price		Life
$	3.83	$	7.00		109,232	$	5.17		8.64
$	7.01	$	12.00		24,168	$	10.26		7.24
$	12.01	$	60.24		2,656	$	60.24		1.13
					136,056	$	7.15		8.24

Exercisable:						Wgt. Avg.
				Stock Options		Exercise
Range of Exercise Prices				Exercisable		Price
$	3.83	$	7.00		29,876	$	5.49
$	7.01	$	12.00		11,885	$	10.32
$	12.01	$	60.24		2,656	$	60.24
					44,416	$	10.05

Assumptions:

	Six Months Ended June 30, 2014			Year Ended December 31, 2013
Expected Volatility		30.0% - 30.0	%		30.0% - 30.0	%
Weighted-Average Volatility		30.00	%		30.00	%
Expected Dividends		-			-
Expected Term (In years)		7.00			7.00
Risk-Free Rate		2.17	%		1.42	%

Total intrinsic value of options exercised:	$	-
Total fair value of shares vested:		26,716
Weighted-average period over which nonvested awards are expected to be recognized:		1.38 years

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A summary of the Company’s restricted stock activity as of June 30, 2014 and changes during the period then ended are presented in the following table:

			Wgt. Avg.
			Grant Date
As of 1/1/2014	Restricted Stock		Fair Value
Nonvested		11,700	$	4.41
Period Activity
Issued		87,658	$	4.20
Vested		11,718	$	4.23
Forfeited		-		-
As of 6/30/2014
Nonvested		87,640	$	4.22

Total fair value of shares vested:	$	49,543
Weighted-average period over which nonvested awards are expected to be recognized:		1.36	year(s)
Unamortized compensation expense	$	346,682

A total of 578,125 of restricted shares of common stock were sold to founding investors of Cordia predominantly during 2009 and 2010 and are considered at June 30, 2014 more-likely-than-not to not vest due to significant performance based thresholds, for which the vesting time period expires in October 2016.

Cordia does not have any benefit plans or incentive compensation plans beyond those maintained by the Bank. Cordia does provide a life insurance benefit to the President and Chief Executive Officer under the terms of his employment agreement.

Note 9. Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) for the six months ended June 30, 2014 and 2013 are summarized as follows:

	Accumulated Other Comprehensive Income (loss)
(dollars in thousands)	Six Months Ended June 30,
	2014			2013
Beginning balance	$	(384	)	$	56
Unrealized holding losses on available for sale securities		(81	)		(280	)
Amortization of AFS to HTM reclassification adjustment		25			-
Net current period other comprehensive income		(56	)		(280	)
Ending balance	$	(440	)	$	(224	)

The following table presents information on amounts reclassified out of accumulated other comprehensive income (loss), by category, during the periods indicated:

(in thousands)	Three Months Ended June 30,				Six Months Ended June 30,				Affected Line Item on Condensed Consolidated
	2014		2013		2014		2013		Statement of Operations
Available-for-sale securities
Realized gains on sales of securities	$	-	$	-	$	64	$	-	Net gain on sale of available-for-sale securities

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Note 10. Preferred Stock Issuance and Conversion

On April 10, 2014, Cordia completed the sale of approximately 363 shares of Mandatorily Convertible, Noncumulative, Nonvoting, Perpetual Preferred Stock, Series A, $0.01 par value per share, to accredited investors at a purchase price of $42,500 per share for total gross proceeds of $15.4 million. The capital raise included investments by various Cordia directors and officers. The net proceeds of the offering are expected to be used primarily to provide growth capital to BVA.

On June 25, 2014, upon stockholder approval, each share of Series A Preferred Stock mandatorily converted into 10,000 shares of Cordia’s common stock at an initial conversion price of $4.25 per share, for a total issuance of approximately 3,629,871 new shares of common stock, of which 2,229,434 are voting and 1,400,437 are nonvoting. The holders of the Series A Preferred Stock did not receive any dividends under the provisions of the plan based on the timing of approval of the Company's stockholders.

Other than voting rights, the nonvoting common stock has the same rights and privileges as the common stock, including sharing ratably in all assets of the Company upon its liquidation, dissolution or winding-up, and entitlement to receive dividends in the same amount per share and at the same time when, as and if declared by the Board, and is identical to the common stock in all other respects as to all other matters (other than voting). Holders of nonvoting common stock have no cumulative voting rights or preemptive rights (other than the limited contractual preemptive rights of certain investors in the private placement offering) to purchase or subscribe for any additional shares of common stock or nonvoting common stock or other securities, and there are no conversion rights or redemption or sinking fund provisions with respect to the nonvoting common stock.

Authorized Shares. 5,000,000 shares of nonvoting common stock, par value of $0.01 per share, are authorized and 1,400,437 shares of nonvoting common stock are outstanding.

Voting Rights. Holders of nonvoting common stock are not entitled to vote except as required by the Virginia Stock Corporation Act. Where the shares of nonvoting common stock are entitled to vote under Virginia law, each holder of nonvoting common stock will have one vote for each share of nonvoting common stock held of record solely on the matters to which such shares are entitled to vote, and subject to the rights and limitations specified by the Virginia Stock Corporation Act.

Automatic Conversion Upon Permitted Transfer. Each share of nonvoting common stock will automatically convert into one share of common stock in the event of a “permitted transfer” to a transferee. A “permitted transfer” is a transfer of nonvoting common stock (i) in a widespread public distribution, (ii) in which no transferee (or group of associated transferees) would receive 2% or more of any class of voting securities of the Company, or (iii) to a transferee that would control more than 50% of the voting securities of the Company without any transfer from such holder of nonvoting common stock.

Dividends. Subject to the prior rights of the holders of shares of preferred stock that may be issued and outstanding, the holders of nonvoting common stock are entitled to receive dividends when, as and if declared by the Company’s Board of Directors out of funds lawfully available for the payment of dividends.

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. Accordingly, these statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed in them. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of several factors more fully described under the caption “Risk Factors” and elsewhere in this report.

Any or all of the forward-looking statements in this report may turn out to be inaccurate. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our respective financial condition, results of operations, business strategy and financial needs. There are important factors that could cause actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements including, but not limited to, statements regarding:

• changes in general economic and financial market conditions;

• changes in the regulatory environment;

• economic conditions generally and in the financial services industry;

• changes in the economy affecting real estate values;

• our ability to achieve loan and deposit growth;

• the completion of future acquisitions or business combinations and our ability to integrate the acquired business into our business model;

• projected population and income growth in our targeted market areas; and

• volatility and direction of market interest rates and a weakening of the economy which could materially impact

credit quality trends and the ability to generate loans.

All forward-looking statements are necessarily only estimates of future results, and actual results may differ materially from expectations. You are, therefore, cautioned not to place undue reliance on such statements which should be read in conjunction with the other cautionary statements that are included elsewhere in this report. Further, any forward-looking statement speaks only as of the date on which it is made and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion is intended to assist the reader in understanding and evaluating the financial condition and results of operations of Cordia and its wholly owned subsidiary, Bank of Virginia (“BVA” or the “Bank). This discussion and analysis should be read in conjunction with Cordia’s consolidated financial statements and related notes thereto located elsewhere in this report.

General

Cordia was incorporated in 2009. Its founders were former bank CEOs, directors and advisors seeking to invest in undervalued or troubled community banks in the Mid-Atlantic and Southeast. In March 2013, Cordia completed a share exchange with BVA shareholders resulting in BVA becoming a wholly-owned subsidiary of Cordia. Aside from the shares of BVA common stock, Cordia’s other assets totaled $1.8 million at June 30, 2014, consisting primarily of $1.8 million of cash and $23 thousand of prepaid expenses.

BVA is a state chartered bank headquartered in Midlothian, Virginia with total assets of approximately $296 million at June 30, 2014. BVA provides retail banking services to individuals and commercial customers through banking locations in Chesterfield County, Virginia and one in Henrico County, Virginia.

Executive Overview

Since the beginning of 2013, the Company has substantially added to its lending and funding activities. During this period, the Bank purchased $88.0 million of rehabilitated student loans that are 98% guaranteed by the U.S. Government and serviced by Xerox Education Services.

The Bank also significantly expanded its deposit base, primarily involving institutional certificate of deposit accounts and retail transaction accounts, while substantially reducing its cost of funds.

In the first quarter of 2013, the Company completed its Plan of Share Exchange with Bank of Virginia, effectively combining the two stockholder bases. In August 2013, BVA’s Written Agreement was lifted by its banking regulators.

Over the past three years, the Company successfully restructured its balance sheet, worked through its legacy asset quality issues, recruited highly qualified new management, and reorganized its lending and deposit activities, resulting in a successful offering of $15.4 million in equity capital in April 2014.

Capital Raise

On April 10, 2014, Cordia completed the sale of approximately 363 shares of Mandatorily Convertible, Noncumulative, Nonvoting, Perpetual Preferred Stock, Series A, $0.01 par value per share, to accredited investors at a purchase price of $42,500 per share for total gross proceeds of $15.4 million. The capital raise included investments by various Cordia directors and officers. The net proceeds of the offering are expected to be used primarily to provide growth capital to BVA.

On June 25, 2014, upon stockholder approval, each share of Series A Preferred Stock mandatorily converted into 10,000 shares of Cordia’s common stock at an initial conversion price of $4.25 per share, for a total issuance of approximately 3,629,871 new shares of common stock, of which 2,229,434 are voting and 1,400,437 are nonvoting. The holders of the Series A Preferred Stock did not receive any dividends under the provisions of the plan based on the timing of approval of the Company's stockholders.

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Results of Operations – Three Months Ended June 30, 2014 Compared to Three Months Ended June 30, 2013

Net Income (Loss)

Consolidated net loss was $270 thousand for the three months ended June 30, 2014 (the “2014 quarter”) compared to consolidated net income of $261 thousand for the three months ended June 30, 2013 (the “2013 quarter”).

Net Interest Income

Net interest income is the largest component of our income, and is affected by the interest rate environment and the volume and the composition of interest-earning assets and interest-bearing liabilities. Our interest-earning assets include loans, investment securities, interest-bearing deposits in other banks, and federal funds sold. Our interest-bearing liabilities include deposits and advances from the FHLB.

Net interest income before the provision for loan losses decreased 3.5% or $75 thousand from $2.2 million for the 2013 quarter to $2.1 million for the 2014 quarter.

Interest income decreased $45 thousand to $2.6 million for the 2014 quarter. Included in the 2014 quarter was $68 thousand of purchase accounting loan accretion income compared to $351 thousand for the 2013 quarter. Excluding that component, interest income was $2.5 million for the 2014 quarter and $2.3 million the 2013 quarter.

Interest expense for the 2014 quarter was $497 thousand, compared to $467 thousand for the 2013 quarter. This increase of $30 thousand was due primarily to an increase in time deposits offset by a one basis point reduction in the average cost of interest bearing liabilities.

Average Balances and Yields

The following tables present information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting yields and costs. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. These tables include acquisition accounting adjustments and therefore do not directly represent contractual rates paid or received.

33

	For the three months ended June 30,
(dollars in thousands)	2014								2013
	Average Balance			Interest		Yield/Rate			Average Balance			Interest		Yield/Rate
Earning Assets:
Loans held for investment (1)	$	205,104		$	2,252		4.40	%	$	181,373		$	2,516		5.56	%
Securities available for sale		54,904			311		2.27	%		16,922			72		1.71	%
Federal Funds and deposits with Banks		12,725			9		0.28	%		48,988			29		0.24	%
Total earning assets		272,733			2,572		3.78	%		247,283			2,617		4.24	%
Allowance for loan losses		(1,344	)							(1,573	)
Other assets		15,136								9,055
Total	$	286,525							$	254,765
Interest-bearing liabilities:
Demand deposits	$	12,871		$	10		0.31	%	$	14,088		$	15		0.43	%
Savings deposits		62,069			43		0.28	%		61,297			52		0.34	%
Time deposits		140,916			388		1.10	%		133,048			359		1.08	%
FHLB borrowings		20,000			56		1.12	%		10,000			41		1.64	%
Total interest-bearing liabilities		235,856			497		0.85	%		218,433			467		0.86	%
Demand deposits		22,560								20,138
Other liabilities		2,382								2,940
Stockholders' equity		25,727								13,254
Total	$	286,525							$	254,765
Net interest income				$	2,075							$	2,150
Net interest rate spread (2)							2.93	%							3.38	%
Net interest margin (3)							3.05	%							3.49	%

⁽¹⁾ Non-accrual loans are included in average balances outstanding, with no related interest income during non-accrual period.

⁽²⁾ Represents the difference between the yield on earnings assets and cost of funds.

⁽³⁾ Represents net interest income divided by average interest-earning assets.

Provision for Loan Losses

A $209 thousand provision for loan losses for the 2014 quarter was recorded compared to $7 thousand for the 2013 quarter.

Non-interest Income

Noninterest income for the 2014 quarter was $62 thousand, compared to $65 thousand for the 2013 quarter.

The following table sets forth the principal components of non-interest income for the quarters ended June 30, 2014 and 2013:

For the three months ended June 30, (dollars in thousands)	2014		2013
Service charges on deposit accounts	$	19	$	29
Other fee income, net		43		36
Total non-interest income	$	62	$	65

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Non-interest Expense

Noninterest expense increased $251 thousand, or 12.9%, from $1.9 million for the 2013 quarter to $2.2 million for the 2014 quarter. The increase was due primarily to increases of $176 thousand in salaries and benefits and $108 thousand in loan expenses. The increase in salaries and benefits was primarily due to the cost of staff additions.

The following table sets forth the primary components of non-interest expense for the quarters ended June 30, 2014 and 2013:

For the three months ended June 30, (dollars in thousands)	2014		2013
Salaries and employee benefits	$	1,150	$	974
Professional services		125		211
Occupancy		120		145
Data processing and communications		151		144
FDIC assessment and bank fees		93		114
Bank franchise taxes		27		20
Student loan servicing fees and other loan expenses		210		102
Other real estate expenses		17		12
Supplies and equipment		65		64
Insurance		44		42
Director's fees		24		38
Marketing and business development		9		15
Other operating expenses		163		66
Total non-interest expense	$	2,198	$	1,947

Income Tax Expense

Under the provisions of the Internal Revenue Code, the Company has approximately $18.2 million of net operating loss carryforwards (net of Section 382 limitation), which will expire if unused beginning in 2024. As of June 30, 2014, deferred tax assets of $6.3 million have been fully reserved with a valuation allowance. It is estimated that $6.3 million of the valuation allowance is available to be reversed if it is more-likely-than-not that sufficient taxable income will be generated in the future. Of the net operating losses that occurred prior to the change in control of BVA in December 2010, the amount of the loss carryforward available to offset taxable income is limited to approximately $254,000 per year for twenty years.

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Results of Operations – Six Months Ended June 30, 2014 Compared to Six Months Ended June 30, 2013

Net Income (Loss)

Consolidated net loss was $554 thousand for the six months ended June 30, 2014 (the “2014 period”) compared to consolidated net income of $482 thousand for the six months ended June 30, 2013 (the “2013 period”).

Net Interest Income

Net interest income before the provision for loan losses decreased 9.4% or $412 thousand from $4.4 million for the 2013 period to $4.0 million for the 2014 period.

Interest income decreased $347 thousand from $5.3 million during the 2013 period to $4.9 million for the 2014 period. Included in the 2014 period was $159 thousand of purchase accounting loan accretion income compared to $1.1 million for the 2013 period. Excluding that component, interest income increased to $4.8 million for the 2014 period from $4.2 million for the 2013 period.

Interest expense for the 2014 period was $964 thousand, compared to $899 thousand for the 2013 period. This increase of $65 thousand was due primarily to an increase of $17.3 million in time deposits offset by a three basis point reduction in the average cost of interest bearing liabilities. The Bank continues to make a concerted effort to allow higher-priced time deposits to roll off as they mature and promote transaction, money market deposit accounts and savings accounts.

Average Balances and Yields

The following tables present information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting yields and costs. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. These tables include acquisition accounting adjustments and therefore do not directly represent contractual rates paid or received.

36

	For the six months ended June 30,
(dollars in thousands)	2014								2013
	Average Balance			Interest		Yield/Rate			Average Balance			Interest		Yield/Rate
Earning Assets:
Loans held for investment (1)	$	191,451		$	4,401		4.64	%	$	168,928		$	5,095		6.08	%
Loans held for sale		-			-					-			-
Securities available for sale		47,367			518		2.21	%		17,410			142		1.64	%
Federal Funds and deposits with Banks		11,897			15		0.25	%		41,832			44		0.21	%
Total earning assets		250,715			4,934		3.97	%		228,170			5,281		4.67	%
Allowance for loan losses		(1,414	)							(1,836	)
Other assets		14,915								8,939
Total	$	264,216							$	235,273
Interest-bearing liabilities:
Demand deposits	$	12,810		$	21		0.33	%	$	14,366		$	34		0.48	%
Savings deposits		55,529			86		0.31	%		54,031			99		0.37	%
Time deposits		136,620			760		1.12	%		121,316			685		1.14	%
FHLB borrowings		15,083			97		1.30	%		10,000			81		1.63	%
Total interest-bearing liabilities		220,042			964		0.88	%		199,713			899		0.91	%
Demand deposits		22,171								19,336
Other liabilities		2,439								3,585
Stockholders' equity		19,564								12,639
Total	$	264,216							$	235,273
Net interest income				$	3,970							$	4,382
Net interest rate spread (2)							3.09	%							3.76	%
Net interest margin (3)							3.19	%							3.87	%

⁽¹⁾ Non-accrual loans are included in average balances outstanding, with no related interest income during non-accrual period.

⁽²⁾ Represents the difference between the yield on earnings assets and cost of funds.

⁽³⁾ Represents net interest income divided by average interest-earning assets.

Provision for Loan Losses

A $229 thousand provision for loan losses for the 2014 period was recorded compared to $134 thousand for the 2013 quarter. The increase in the provision is due to increased organic loan production as well as additional provision related to the unguaranteed portion of the student loan portfolio.

Non-interest Income

Noninterest income for the 2014 period was $185 thousand, compared to $133 thousand for the 2013 period. The increase was primarily the result of a net gain on the sale of available for sale securities.

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The following table sets forth the principal components of non-interest income for the periods ended June 30, 2014 and 2013:

For the six months ended June 30, (dollars in thousands)	2014		2013
Service charges on deposit accounts	$	45	$	62
Net gain on sale of "AFS" securities		64		-
Other fee income, net		76		71
Total non-interest income	$	185	$	133

Non-interest Expense

Noninterest expense increased $581 thousand, or 14.9%, from $3.9 million for the 2013 quarter to $4.5 million for the 2014 quarter. The increase was due primarily to increases of $397 thousand in salaries and benefits and $219 thousand in loan expenses. The increase in salaries and benefits was primarily due to increased incentive compensation and staff additions associated with the Company’s growth strategy.

The following table sets forth the primary components of non-interest expense for the periods ended June 30, 2014 and 2013:

For the six months ended June 30, (dollars in thousands)	2014		2013
Salaries and employee benefits	$	2,556	$	2,159
Professional services		231		273
Occupancy		271		290
Data processing and communications		293		269
FDIC assessment and bank fees		187		234
Bank franchise taxes		56		46
Student loan servicing fees and other loan expneses		336		117
Other real estate expenses		22		28
Supplies and equipment		140		133
Insurance		85		84
Director's fees		40		72
Marketing and business development		15		37
Other operating expenses		248		157
Total non-interest expense	$	4,480	$	3,899

Income Tax Expense

Under the provisions of the Internal Revenue Code, the Company has approximately $18.2 million of net operating loss carryforwards (net of Section 382 limitation), which will expire if unused beginning in 2024.

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Financial Condition

Loans

Loans represent the largest category of earning assets and typically provide higher yields than the other types of earning assets. Loans carry inherent credit and liquidity risks associated with the creditworthiness of our borrowers and general economic conditions. At June 30, 2014, total loans held for investment (net of reserves) were $202.9 million versus $172.5 million at December 31, 2013.

The following table sets forth the composition of the loan portfolio by category at the dates indicated.

	At June 30,						At December 31,
	2014						2013
(dollars in thousands)	Amount			Percent			Amount			Percent
Commercial Real Estate:
Acquisition, development and construction	$	2,263			1.1	%	$	3,475			2.0	%
Non-owner occupied		35,070			17.2	%		28,606			16.4	%
Owner occupied		53,576			26.2	%		50,500			29.0	%
Commercial and industrial		24,605			12.0	%		21,085			12.1	%
Guaranteed Student Loans		70,624			34.5	%		55,427			31.9	%
Consumer:
Residential mortgage		8,508			4.2	%		7,156			4.1	%
HELOC		9,105			4.5	%		7,250			4.2	%
Other		534			0.3	%		508			0.3	%
Total loans		204,285			100.0	%		174,007			100.0	%
Allowance for loan losses		(1,407	)					(1,489	)
Total loans, net of allowance for loan losses	$	202,878					$	172,518

The largest component of the loan portfolio is comprised of various types of commercial real estate loans. At June 30, 2014, commercial real estate loans totaled $90.9 million or 44.5% of the total portfolio. Guaranteed student loans totaled $70.6 million, commercial and industrial loans totaled $24.6 million and consumer loans, which were comprised principally of residential mortgage and home equity loans, totaled $18.1 million. Residential mortgage loans consisted of first and second mortgages on single family residential dwellings. Other consumer loans above includeconsumer lines of credit and installment loans.

Allowance for Loan Losses

At June 30, 2014, our allowance for loan losses was $1.4 million, or .69% of total loans and 55.7% of non-performing loans.  The allowance is net of $311 thousand of net charge offs taken during the six months ended June 30, 2014 and includes a $229 thousand provision for the period. At December 31, 2013, our allowance for loan losses was $1.5 million, or .86% of total loans outstanding and 37.9% of non-performing loans.

Management has developed policies and procedures for evaluating the overall quality of the loan portfolio, the timely identification of potential problem credits and impaired loans and the establishment of an appropriate allowance for loan losses. The acquired loan portfolio was originally recorded at fair value, which includes a credit mark-to-market, based on the acquisition method of accounting. Loans renewed or originated since the date of our initial investment are evaluated and an appropriate allowance for loan losses is established. Any worsening of acquired impaired loans since the date of Cordia’s investment in BVA is evaluated for further impairment. Additional impairment on acquired impaired loans is recorded through the provision for loan losses. Any improvement in cash flows of acquired impaired loans is amortized as a yield adjustment over the remaining life of the loans. A fuller explanation may be found in the table under the caption “Loans With Deteriorated Credit Quality” regarding accretable and nonaccretable discount. Loan losses are charged against the allowance when management believes the uncollectability of a loan is confirmed, which decreases the balance of the allowance. Subsequent recoveries, if any, are credited back to the allowance. Loans acquired with deteriorated credit quality that were re-written are treated as new loans and are included in management’s calculation of the allowance for loan losses.

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The allowance consists of a specific component allocated to impaired loans and a general component allocated to the aggregate of all unimpaired loans. The amount of the allowance is established through the application of a standardized model, the components of which are: an impairment analysis of identified loans to determine the level of any specific reserves needed on impaired loans, and a broad analysis of historical loss experience, economic factors and portfolio-related environmental factors to determine the level of general reserves needed. The model inputs include an evaluation of historical charge-offs, the current trends in delinquencies, and adverse credit migration and trends in the size and composition of the loan portfolio, including concentrations in higher risk loan types. Consideration is also given to the results of regulatory examinations.

The allowance for loan losses is evaluated quarterly by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the specific borrowers’ ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The use of various estimates and judgments in our ongoing evaluation of the required level of allowance can significantly affect our results of operations and financial condition and may result in either greater provisions to increase the allowance or reduced provisions based upon management’s current view of portfolio and economic conditions and the application of revised estimates and assumptions. The allowance consists of specific and general components. The specific component relates to loans that are classified as substandard or worse and loans classified as TDR’s. For such loans that are also classified as impaired, a specific allowance is established. The general component covers loans graded special mention or better and is based on an analysis of historical loss experience, national and local economic factors, and environmental factors specific to the loan portfolio composition.

The decline in the allowance for loan losses as a percentage of total loans from December 31, 2013 to June 30, 2014 is largely due to the continued improvement in the asset quality of the portfolio and the $26.5 million of guaranteed student loan portfolios that were purchased in the first six months of 2014. The student loans are approximately 98% guaranteed by the U.S. Department of Education (full principal and accrued interest upon default). Therefore, only the unguaranteed portion of approximately $3.7 million is considered in the Company’s allowance for loan loss methodology. Removing the guaranteed portion of the student loans from the total loans would result in an allowance for loan losses of approximately 1.02% of outstanding loans. The Company also benefits from purchase accounting discounts on loans that resulted from the acquisition of the Bank in 2010. These discounts effectively provide an additional cushion against potential loan losses. Combining the loan loss allowance and purchasing accounting discounts on loans other than guaranteed student loans, the effective loan reserve of the Company is 1.19%.

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Changes affecting the allowance for loan losses for the six months ended June 30, 2014 and the year ended December 31, 2013, are summarized in the following table.

(dollars in thousands)	Six Months Ended June 30, 2014			Year Ended December 31, 2013
Allowance for loan losses at beginning of period	$	1,489		$	2,110
Provision for loan losses		229			19
Charge-offs:
Commercial real estate		(120	)		(289	)
Commercial and industrial		(17	)		-
Guaranteed Student Loans		(265	)		(94	)
Consumer		-			(403	)
Total charge-offs		(402	)		(786	)
Recoveries:
Commercial real estate		50			-
Commercial and industrial		18			135
Guaranteed Student Loans		-			-
Consumer		23			11
Total recoveries		91			146
Net charge-offs		(311	)		(640	)
Allowance for loan losses at end of period	$	1,407		$	1,489
Allowance for loan losses to non-performing loans		55.68	%		37.85	%
Allowance for loan losses to total loans outstanding at end of period		0.69	%		0.86	%
Net charge-offs to average loans during the period		0.15	%		0.38	%

The increase in the allowance to non-performing loan ratio from December 31, 2013 is due to the continued reduction of non-accrual loans from $3.9 million at December 31, 2013 to $2.5 million at June 30, 2014.

Included in the above table is the activity related to the portion of the allowance for loan losses for loans acquired with deteriorated credit quality. Because of the nature and limited number of these loans, they are individually evaluated for additional impairment on a quarterly basis. Activity related only to that portion of the allowance for loan losses is as follows:

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(dollars in thousands)	Six Months Ended June 30, 2014			Year Ended December 31, 2013
Allowance for loan losses at beginning of period	$	234		$	537
Provision for loan losses		(138	)		(14	)
Charge-offs:
Commercial real estate		(56	)		(289	)
Commercial and industrial		-			-
Consumer		-			-
Total charge-offs		(56	)		(289	)
Recoveries:		-			-
Net charge-offs		(56	)		(289	)
Allowance for loan losses at end of period	$	40		$	234

The following table represents the allocation of the allowance for loan losses at the dates indicated. Notwithstanding these allocations, the entire allowance is available to absorb loan losses in any loan category.

	At June 30, 2014								At December 31, 2013
(dollars in thousands)	Amount		% of Allowance to total allowance			% of Loans in category to total loans			Amount		% of Allowance to total allowance			% of Loans in category to total loans
Commercial real estate	$	481		34	%		44	%	$	661		45	%		47	%
Commercial and industrial		509		36	%		12	%		377		25	%		12	%
Guaranteed Student Loans		194		14	%		35	%		268		18	%		32	%
Consumer		223		16	%		9	%		183		12	%		9	%
Total allowance for loan losses	$	1,407		100	%		100	%	$	1,489		100	%		100	%

Asset Quality

Risk Rating Process

On a quarterly basis, the process of estimating the allowance for loan losses begins with review of the risk rating assigned to individual loans. Through this process, loans graded substandard or worse are evaluated for impairment in accordance with ASC Topic 310 “Accounting by Creditors for Impairment of a Loan”. Refer to Note 5 of the Notes to the Consolidated Financial Statements for more detail.

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The following is the distribution of loans by credit quality and class as of June 30, 2014 and December 31, 2013:

June 30, 2014 (dollars in thousands)	Commercial Real Estate										Consumer
Credit quality class	Acq-Dev Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
1 Highest quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
2 Above average quality		-		2,018		3,132		2,015		70,624		49		961		45		78,844
3 Satisfactory		229		16,030		28,538		12,921		-		4,133		4,746		403		67,000
4 Pass		781		15,405		18,394		7,557		-		4,016		2,354		86		48,593
5 Special mention		-		126		-		81		-		124		319		-		650
6 Substandard		270		-		259		786		-		-		273		-		1,588
7 Doubtful		-		-		-		-		-		-		-		-		-
		1,280		33,579		50,323		23,360		70,624		8,322		8,653		534		196,675
Loans acquired with deteriorating credit quality		983		1,491		3,253		1,245		-		186		452		-		7,610
Total loans	$	2,263	$	35,070	$	53,576	$	24,605	$	70,624	$	8,508	$	9,105	$	534	$	204,285

December 31, 2013 (dollars in thousands)	Commercial Real Estate										Consumer
Credit quality class	Acq-Dev Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
1 Highest quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
2 Above average quality		-		2,078		2,966		2,170		55,427		73		205		80		62,999
3 Satisfactory		325		10,563		25,264		8,290		-		3,965		3,541		350		52,298
4 Pass		1,500		12,990		14,606		8,128		-		2,710		2,243		78		42,255
5 Special mention		299		1,449		3,486		268		-		203		630		-		6,335
6 Substandard		267		-		336		759		-		15		177		-		1,554
7 Doubtful		-		-		-		-		-		-		-		-		-
		2,391		27,080		46,658		19,615		55,427		6,966		6,796		508		165,441
Loans acquired with deteriorating credit quality		1,084		1,526		3,842		1,470		-		190		454		-		8,566
Total loans	$	3,475	$	28,606	$	50,500	$	21,085	$	55,427	$	7,156	$	7,250	$	508	$	174,007

 As shown in the tables above, substandard and doubtful loans were $1.6 million at June 30, 2014, or 0.8% of the total loan portfolio. This compares to $1.6 million, or 0.9% of the total loan portfolio at December 31, 2013. Special mention loans decreased $5.7 million from $6.3 million at December 31, 2013 to $650 thousand at June 30, 2014 and loans graded “pass” or better increased $36.8 million from $157.6 million at December 31, 2013 to $194.4 million at June 30, 2014. The decrease in special mention loans is due to loans acquired with deteriorated credit quality, primarily rated substandard, that have been re-written and reclassified to satisfactory portfolio loans.

The Bank has continued to employ its third party loan review firm, Thurmond Clower & Associates, for annual reviews and periodic special assignments.  The most recent evaluation was completed in May 2014, with another review scheduled during the second quarter of 2015.  The scope of the 2014 loan file review totaled approximately 70% of the Bank’s exposure and included the following:

● All classified loans or total relationship exposure over $250,000;

● All special mention loans or total relationship exposures over $500,000;

● A random sample of pass-rated loans determined by the loan review firm under $500,000;

● All loans past due as of the review date;

● All OREO properties;

● All insider loans, including loans to directors, significant shareholders, and executive management granted since the last review;

● Any loans that management or the board of directors requested be reviewed;

● Annual review of the allowance for loan and lease loss reserve and methodology.

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Nonperforming Assets

The past due status of a loan is based on the contractual due date of the most delinquent payment due. Loans, including impaired loans, are generally classified as nonaccrual if they are past due as to maturity or payment of principal or interest for a period of more than 90 days, unless such loans are well-secured and in the process of collection. Loans greater than 90 days past due may remain on an accrual status if management determines it has adequate collateral and cash flow to cover the principal and interest or is in the process of refinancing. If a loan or a portion of a loan that is delinquent more than 90 days is adversely classified, or is partially charged off, the loan is generally classified as nonaccrual. Additionally, whenever management becomes aware of facts or circumstances that may adversely impact the full collectability of principal and interest of a loan, it is placed on nonaccrual status immediately, rather than delaying such action until the loans become 90 days past due.

When a loan is placed on nonaccrual status, previously accrued and uncollected interest is reversed, and the amortization of related deferred loan fees or costs is suspended. While a loan is classified as nonaccrual and the future collectability of the recorded loan balance is doubtful, collections of interest and principal are generally applied as a reduction to principal outstanding. When the future collectability of the recorded loan balance is expected, interest income may be recognized on a cash basis. In the case where a nonaccrual loan has been partially charged off, recognition of interest on a cash basis is limited to that which would have been recognized on the recorded loan balance at the contractual interest rate. Cash interest receipts in excess of that amount are recorded as recoveries to the allowance for loan losses until prior charge-offs have been fully recovered.

Loans placed on non-accrual status may be returned to accrual status after:

· payments are received for a reasonable period, usually six (6) consecutive months in accordance with the loan documents, and any doubt as to the loan's full collectability has been removed; or

· the loan is restructured and supported by a well-documented credit evaluation of the borrower's financial condition and the prospects for full payment.

When a loan is returned to accrual status after restructuring the risk rating remains unchanged until a satisfactory payment history is re-established.

Nonperforming assets totaled $4.1 million or 1.4% of total assets at June 30, 2014 and are comprised of non-accrual loans of $1.6 million, non-accrual troubled debt restructures (“TDR’s”) of $1.0 million and repossessed collateral of $1.5 million. The balance of nonperforming assets at December 31, 2013 was $5.5 million or 2.3% of total assets. The decrease at June 30, 2014 from December 31, 2013 was a result of management’s continued aggressive approach to workout and resolution of problem loans coupled with growth in total assets.

Real estate acquired through, or in lieu of, foreclosure is held for sale and is stated at the estimated fair market value of the property, less estimated disposal costs. Any excess of the principal over the estimated fair market value at the time of acquisition is charged to the allowance for loan losses. The estimated fair market value is reviewed periodically by management and any write-downs are charged against current earnings. Development and improvement costs relating to property are capitalized unless such added costs cause the properties recorded value to exceed the estimated fair market value. Net operating income or expenses of such properties are included in collection, repossession and other real estate owned expenses.

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A summary of nonperforming assets, including troubled debt restructurings, as of the dates indicated follows:

(dollars in thousands)	Quarter ended June 30, 2014			Year ended December 31, 2013
Non-accrual troubled debt restructurings	$	994		$	119
Other non-accrual loans		1,578			3,815
Total non-accrual loans		2,572			3,934
Other real estate owned		1,543			1,545
Total non-performing assets	$	4,115		$	5,479
Total non-accrual loans to total loans		1.26	%		2.26	%
Total non-performing assets to total assets		1.39	%		2.33	%
Accruing troubled debt restructings	$	1,753		$	1,837

Loans With Deteriorated Credit Quality

In the acquisition of BVA certain loans were acquired which showed evidence of deterioration in credit quality. These loans are accounted for under the guidance of ASC 310-30. Information related to these loans as of the dates indicated is provided in the following table.

(dollars in thousands)	June 30, 2014			December 31, 2013
Contract principal balance	$	7,667		$	8,689
Accretable discount		(52	)		(62	)
Nonaccretable discount		(5	)		(61	)
Book value of loans	$	7,610		$	8,566

Investment Securities

Our investment portfolio consists of U.S. agency debt and agency guaranteed mortgage-backed securities. Our investment security portfolio includes securities classified as available for sale as well as securities classified as held to maturity. The total securities portfolio (excluding restricted securities) was $39.3 million at December 31, 2013 as compared to $67.7 million at June 30, 2014. At June 30, 2014, the securities portfolio consisted of $45.8 million of securities available for sale, at fair value and $21.8 million of securities held to maturity, at amortized cost.

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The table below presents the amortized cost, gross unrealized gains and losses, and fair value of securities available for sale at June 30, 2014 and December 31, 2013.

	June 30, 2014
	Amortized		Gross Unrealized					Estimated
(dollars in thousands)	Cost		Gains		Losses			Fair Value
U.S. Government agencies	$	3,502	$	-	$	(28	)	$	3,474
Agency guaranteed mortgage-backed securities		42,463		69		(171	)		42,361
Total	$	45,965	$	69	$	(199	)	$	45,835

	December 31, 2013
	Amortized		Gross Unrealized					Estimated
(dollars in thousands)	Cost		Gains		Losses			Fair Value
U.S. Government agencies	$	7,038	$	56	$	(53	)	$	7,041
Agency guaranteed mortgage-backed securities		17,578		10		(62	)		17,526
Total	$	24,616	$	66	$	(115	)	$	24,567

The table below presents the carry value, gross unrealized gains and losses, and fair value of securities held to maturity at June 30, 2014 and December 31, 2013.

	June 30, 2014
			Gross Unrealized					Estimated
(dollars in thousands)	Carry Value		Gains		Losses			Fair Value
Agency guaranteed mortgage-backed securities	$	21,839	$	141	$	(21	)	$	21,959

	December 31, 2013
			Gross Unrealized					Estimated
(dollars in thousands)	Carry Value		Gains		Losses			Fair Value
Agency guaranteed mortgage-backed securities	$	14,753	$	-	$	(156	)	$	14,597

Deposits and Other Interest-Bearing Liabilities

At June 30, 2014, total deposits were $245.2 million, compared to $210.8 million at December 31, 2013. Core deposits, which by FDIC guidelines exclude certificates of deposit of $250,000 or more and insured brokered deposits, provide a relatively stable funding source for our loan portfolio and other earning assets. Our core deposits were $214.0 million at June 30, 2014, or 87.3% of total deposits, compared to $195.4 million at December 31, 2013, or 92.3% of total deposits. Deposits have been the primary source of funding and have enabled us to successfully meet both our short-term and long-term liquidity needs. During the six months ended June 30, 2014, money market deposits primarily from institutional investors increased $15.6 million. In addition, during the six months ended June 30, 2014, institutional time deposits increased by $17.0 million. Our loan-to-deposit ratio was 83.3% at June 30, 2014 and 82.5% at December 31, 2013.

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The following table sets forth our deposits by category at the dates indicated.

	June 30, 2014					December 31, 2013
(dollars in thousands)	Amount		Percent			Amount		Percent
Non-interest bearing demand accounts	$	24,883		10.1	%	$	22,845		10.8	%
NOW accounts		12,499		5.1	%		13,072		6.2	%
Savings and money market accounts		63,545		25.9	%		47,613		22.6	%
Times deposits - less than $100,000		50,701		20.7	%		51,053		24.2	%
Times deposits - $100,000 or more		93,565		38.2	%		76,231		36.2	%
Total	$	245,193		100.0	%	$	210,814		100.0	%

The maturity distribution of our time deposits of $100,000 or more and other time deposits at June 30, 2014, is set forth in the following table:

	June 30, 2014
(dollars in thousands)	Time deposits of $100K and greater		Time deposits of less than $100K		Total
Months to maturity:
Three months or less	$	6,284	$	8,899	$	15,183
Over three months to twelve months		39,709		18,065		57,774
Over twelve months to three years		41,735		18,345		60,080
Over three years		5,837		5,392		11,229
Total	$	93,565	$	50,701	$	144,266

At June 30, 2014, 49.2% of our time deposits over $100,000 had maturities within twelve months. Large certificate of deposit customers tend to be more sensitive to interest rate levels, making these deposits less reliable sources of funding for liquidity planning purposes in comparison to smaller core deposits.

Management monitors maturity trends in time deposits as part of its overall asset liability management strategy.

Liquidity and Capital Resources

Liquidity

Liquidity management involves monitoring our sources and uses of funds in order to meet our short-term and long-term cash flow requirements while optimizing profits. Liquidity represents an institution’s ability to meet present and future financial obligations, including through the sale of existing assets or the acquisition of additional funds through short-term borrowings. BVA’s primary access to liquidity comes from several sources: operating cash flows from payments received on loans and mortgage-backed securities, increased deposits, and cash reserves. BVA’s secondary sources of liquidity are Federal Funds sold, unpledged securities available for sale, and borrowings from correspondent banks, the FHLB and the Federal Reserve Bank‘s Discount Window. Liquidity strategies are implemented and monitored by the Asset/Liability Committee (“ALCO”) of our BVA Board of Directors.

BVA’s deposit base grew by 16.3% from $210.8 million at December 31, 2013 to $245.2 million at June 30, 2014. The growth in deposits was primarily driven by growth in savings and money market accounts and time deposits in excess of $100,000. Savings and money market accounts grew 33.5% from $47.6 million at December 31, 2013 to $63.5 million at June 30, 2014. Time deposits in excess of $100,000 grew 22.7% from $76.2 million at December 31, 2013 to $93.6 million at June 30, 2014. Core deposits at June 30, 2014 were 87.3% of total deposits compared to 92.3% at December 31, 2013. As it looks to implement other loan growth initiatives for 2014, BVA has developed several funding strategies, including judicious use of brokered and institutional deposits, to augment core deposit growth and further reduce the cost of funds. Development of several sources of funding beyond core deposit growth ensures maximum liquidity access without dependence on higher cost sources of funds.

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BVA maintains an investment portfolio of marketable securities that may be used for liquidity purposes by either pledging them through repo transactions against borrowings from the FHLB or a correspondent bank or by selling them on the open market. Those securities consist primarily of U.S. Government agency debt securities. To the extent any securities are pledged against borrowing from one credit facility, the borrowing ability of other secured borrowing facilities would be reduced by a like amount.

Borrowings

As of June 30, 2014, BVA had a total of $22.5 million committed repo lines with correspondent banks through which borrowings could be made against the pledge of marketable securities subject to mark-to-market valuations and standard collateral borrowing ratios. These lines were unused during 2013 and the six months ended June 30, 2014 and remain fully available. BVA also maintains a $2.5 million secured line of credit as well as a $2.0 million unsecured lines of credit with other correspondent banks that were available for direct borrowings or Federal Funds purchased.

BVA is a member of the Federal Home Loan Bank of Atlanta (FHLB), which provides access to additional lines of credit and other products offered by the FHLB. These borrowings are largely secured by BVA’s loan portfolio. The FHLB maintains a blanket security agreement on qualifying collateral. As of June 30, 2014 and December 31, 2013, BVA had $20.0 million and $10.0 million, respectively, in secured borrowings outstanding with the FHLB Atlanta against pledged eligible mortgage loan collateral and investment securities, at an average interest rate of 1.12%. As of June 30, 2014, BVA had a total credit availability of $35.1 million at the FHLB which could be accessed through pledging a combination of eligible mortgage loan collateral and investment securities. The FHLB offers a variety of floating and fixed rate loans at terms ranging from overnight to 20 years; therefore, BVA can match borrowings mitigating interest rate risk.

Liquidity Contingency Plan

Historically, BVA has maintained both a retail branch-based and an asset-based liquidity strategy and has not depended materially on brokered deposits or utilized securitization as sources of liquidity. BVA strives to follow regulatory guidance in the management of liquidity risk and has established a Board-approved Contingency Funding Plan (CFP) that prescribes liquidity risk limits and guidelines and includes pro forma cash flow analyses of BVA’s sources and uses of funds under various liquidity scenarios. BVA’s CFP includes funding alternatives that can be implemented if access to normal funding sources is reduced.

We are not aware of any trends, events or uncertainties that are reasonably likely to have a material adverse effect on our short term or long term liquidity. Based on the current and expected liquidity needs, including any liquidity needs associated with loan growth or generated by off-balance sheet transactions such as commitments to extend credit, commitments to purchase securities and standby letters of credit, we expect to be able to meet our obligations for the next twelve months.

Capital

BVA is subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can trigger certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a material effect on our financial statements. Under the regulatory capital adequacy guidelines BVA must meet specific capital guidelines that are based on quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. Our capital amounts and classifications are also subject to qualitative judgments by the regulators.

Quantitative measures established by regulation to ensure capital adequacy require financial institutions to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). At June 30, 2014 and December 31, 2013, BVA met all capital adequacy requirements to which it was subject. BVA is also required to maintain capital at a minimum level as a proportion of quarterly average assets, which is known as the leverage ratio. The minimum levels to be considered well-capitalized are 5% for tier 1 leverage ratio, 6% for tier 1 risk-based capital ratio, and 10% for total risk-based capital ratio.

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BVA exceeded all the regulatory capital requirements at the dates indicated and was considered well-capitalized, as set forth in the following table. Cordia completed a capital raise of $15.4 million on April 10, 2014. A substantial portion of the proceeds were invested in BVA, resulting in BVA having capital ratios as of June 30, 2014 that are materially higher than the capital ratios as of December 31, 2013.

	Minimum Requirements
(dollars in thousands)	Well Capitalized			Adequately Capitalized			June 30, 2014			December 31, 2013
Tier 1 capital							$	25,457		$	14,127
Tier 2 capital								1,407			1,489
Total qualifying capital							$	26,864		$	15,616
Total risk-adjusted assets							$	163,692		$	138,869
Tier 1 leverage ratio		5	%		4	%		8.90	%		6.09	%
Tier 1 risked-based capital ratio		6	%		4	%		15.55	%		10.17	%
Total risk-based capital ratio		10	%		8	%		16.41	%		11.25	%

Cordia is considered a small bank holding company, based on its asset size under $500 million. Accordingly it is exempt from Federal regulatory guidelines related to leverage ratios and risk-based capital.

Interest Rate Sensitivity

The pricing and maturity of assets and liabilities are monitored and managed in order to diminish the potential adverse impact that changes in rates could have on net interest income. The principal monitoring techniques employed by BVA are the Economic Value of Equity (EVE) and Net Interest Income or Earnings at Risk (NII or EaR). EVE and NII are cash flow and earnings simulation modeling techniques which predict likely economic outcomes given various interest rate scenarios.

Interest rate sensitivity can be managed by closely matching the interest rate repricing periods of assets or liabilities at the time they are acquired and by adjusting that match as the balance sheet grows or the mix of asset and liability characteristics or interest rates change. That adjustment can be accomplished by selling securities available for sale, replacing an asset or liability at maturity with those of different characteristics, or adjusting the interest rate during the life of an asset or liability. Managing the amount of different assets and liabilities that reprice in a given time interval may help to hedge the risk and minimize the impact on net interest income of rising or falling interest rates.

Application of a 200 basis point rate increase would result in an 11.5% increase in net interest income at June 30, 2014, as compared to an 11.6% increase at December 31, 2013. A 200 basis point rate increase would result in the depreciation of the Bank’s equity value by 16.8% at June 30, 2014, compared to 15.1% depreciation at December 31, 2013.

Off-Balance Sheet Risk/Commitments and Contingencies

Through our operations, we have made contractual commitments to extend credit in the ordinary course of our business activities. These commitments are legally binding agreements to lend money to our customers at predetermined interest rates for a specified period of time. At June 30, 2014, we had issued commitments to extend credit of $19.0 million through various types of commercial lending arrangements. The majority of these commitments to extend credit had variable rates.

We evaluate each customer’s credit worthiness for such commitments on a case-by-case basis in the same manner as for the approval of a direct loan. The amount of collateral obtained, if deemed necessary by us upon extension of credit, is based on our credit evaluation of the borrower. Collateral varies but may include accounts receivable, inventory, property, plant and equipment, commercial and residential real estate.

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Critical Accounting Policies

Cordia’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America and conform to general practices within the banking industry. Cordia’s financial position and results of operations are affected by management’s application of accounting policies, including judgments made to arrive at the carrying value of assets and liabilities and amounts reported for revenues, expenses and related disclosures. Different assumptions in the application of these policies could result in material changes in our financial position and/or results of operations.

Estimates, assumptions, and judgments are necessary principally when assets and liabilities are required to be recorded at estimated fair value, when a decline in the value of an asset carried on the financial statements at fair value warrants an impairment write-down or valuation reserve to be established, or when an asset or liability needs to be recorded based upon the probability of occurrence of a future event. Carrying assets and liabilities at fair value inherently results in more financial statement volatility. The fair values and the information used to record valuation adjustments for certain assets and liabilities are either based on quoted market prices or provided by third party sources, when available. When third party information is not available, valuation adjustments are estimated in good faith by management primarily through the use of internal or third party modeling techniques and/or appraisal estimates.

Cordia’s accounting policies are fundamental to understanding Management’s Discussion and Analysis. The following is a summary of Cordia’s “critical accounting policies.” In addition, the disclosures presented in the Notes to the Consolidated Financial Statements and in this section provide information on how significant assets and liabilities are valued in the financial statements and how those values are determined.

Business Combinations

Cordia accounts for its business combinations under the acquisition method of accounting, a cost allocation process which requires the cost of an acquisition to be allocated to the individual assets acquired and liabilities assumed based on their estimated fair values. The acquisition method of accounting requires an acquirer to recognize the assets acquired and the liabilities assumed at the acquisition date measured at their fair values as of that date. To determine the fair values, Cordia relies on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analyses or other valuation techniques.

Acquired Loans with Specific Credit-Related Deterioration.

Acquired loans with specific credit deterioration are accounted for by Cordia in accordance with FASB Accounting Standards Codification 310-30. Certain acquired loans, those for which specific credit-related deterioration, since origination, is identified, are recorded at fair value reflecting the present value of the amounts expected to be collected. Income recognition on these loans is based on a reasonable expectation about the timing and amount of cash flows to be collected. Acquired loans deemed impaired and considered collateral dependent, with the timing of the sale of loan collateral indeterminate, remain on non-accrual status and have no accretable yield.

Allowance for Loan Losses

We monitor and maintain an allowance for loan losses to absorb future losses inherent in the loan portfolio. We maintain policies and procedures that address the systems of controls over the following areas of maintenance of the allowance: the systematic methodology used to determine the appropriate level of the allowance to provide assurance they are maintained in accordance with accounting principles generally accepted in the United States of America; the accounting policies for loan charge-offs and recoveries; the assessment and measurement of impairment in the loan portfolio; and the loan grading system.

We evaluate loans graded substandard or worse individually for impairment. These evaluations are based upon expected discounted cash flows or collateral values. If the evaluation shows that the loan’s expected discounted cash flows or underlying collateral is not sufficient to repay the loan as agreed in accordance with the terms of the loan, then a specific reserve is established for the amount of impairment, which represents the difference between the principal amount of the loan less the expected discounted cash flows or value of the underlying collateral, net of selling costs.

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For loans without individual measures of impairment which are loans graded special mention or better, we make estimates of losses for pools of loans grouped by similar characteristics, including the type of loan as well as the assigned loan classification. A loss rate reflecting the expected loss inherent in a group of loans is derived based upon estimates of default rates for a given loan grade and the predominant collateral type for the group. The resulting estimate of losses for pools of loans is adjusted for relevant environmental factors and other conditions of the portfolio of loans, including: borrower and industry concentrations; levels and trends in delinquencies, charge-offs and recoveries; changes in underwriting standards and risk selection; level of experience, ability and depth of lending management; and national and local economic conditions.

The amount of estimated impairment for individually evaluated loans and pools of loans is added together for a total estimate of loan losses. This estimate of losses is compared to our allowance for loan losses as of the evaluation date and, if the estimate of losses is greater than the allowance, an additional provision to the allowance would be made through a charge to the income statement. If the estimate of losses is less than the existing allowance, the degree to which the allowance exceeds the estimate is evaluated to determine whether the allowance falls outside a range of estimates. If the estimate of losses is below the range of reasonable estimates, the allowance is reduced by way of a credit to the provision for loan losses. We recognize the inherent imprecision in estimates of losses due to various uncertainties and variability related to the factors used, and therefore a reasonable range around the estimate of losses is derived and used to ascertain whether the allowance is materially overstated. If different assumptions or conditions were to prevail and it is determined that the allowance is not adequate to absorb the new estimate of probable losses, an additional provision for loan losses would be made in future periods. These additional provisions may be material to the consolidated Financial Statements.

Impact of Inflation

Since the assets and liabilities of financial institutions such as BVA are primarily monetary in nature, interest rates have a more significant effect on BVA’s performance than do the effects of changes in the general rate of inflation and changes in prices of goods and services. In addition, interest rates do not necessarily move in the same direction or in the same magnitude as the prices of goods and services. As discussed previously, we seek to manage the relationships between interest sensitive assets and liabilities in order to protect against wide interest rate fluctuations, including those resulting from inflation.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The information required by this Item 3 is incorporated by reference to information appearing in the MD&A Section of this Quarterly Report on Form 10-Q, more specifically in the sections entitled “Interest Rate Sensitivity” and “Liquidity Contingency Plan”.

Item 4. Controls and Procedures

The Company’s management, including the Company’s principal executive officer and principal accounting officer, have evaluated the effectiveness of the Company’s “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  Based upon their evaluation, the principal executive officer and principal financial officer concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report to ensure that information required to be disclosed in the reports that the company files or submits under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Management is also responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15 (f) under the Exchange Act). There have been no changes in the Company’s internal control over financial reporting during the three months ended June 30, 2014 that have materially affected, or are reasonably likely to affect, the Company’s internal control over financial reporting.

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Part II. Other Information

Item 1. Legal Proceedings

Periodically, there have been various claims and lawsuits against us incident to our business. We are not a party to any pending legal proceedings that we believe would have a material adverse effect on our financial condition, results of operations or cash flows.

Item 1A. Risk Factors

For information regarding the Company’s risk factors, se Part I, Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, file with the Securities and Exchange Commission on March 26, 2014. As of June 30, 2014, the risk factors of the Company have not materially changed from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2013.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) None

(b) None

(c) Cordia did not repurchase any of its stock during the quarter ended June 30, 2014 and did not have any outstanding repurchase authorizations during that period.

Item 3. Defaults Upon Senior Securities

Not Applicable

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

Exhibit No.	Exhibit
3	Second Amended and Restated Articles of Incorporation of Cordia Bancorp Inc.
10.1	Securities Purchase Agreement, dated as of April 10, 2014, by and between Cordia Bancorp Inc. and the Investors identified therein (incorporated by reference to Exhibit 10.1 to the Form 8-K filed on April 11, 2014)
10.2	Registration Rights Agreement, dated as of April 10, 2014, by and between Cordia Bancorp Inc. and the Investors identified therein (incorporated by reference to Exhibit 10.2 to the Form 8-K filed on April 11, 2014)
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
31.2	Rule 13a-14(a)/15d-14(a) Certification of Acting Chief Financial Officer and Principal Financial Officer
32	Section 1350 Certification
101.1	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, formatted in XBRL(Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to the Consolidated Financial Statements, tagged as blocks of text.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CORDIA BANCORP INC.

August 8, 2014	/s/ Jack Zoeller
	Jack Zoeller
	President and Chief Executive Officer

August 8, 2014	/s/ Mark Severson
	Mark Severson
	Chief Financial Officer

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EX-3

Exhibit 3

ARTICLES OF RESTATEMENT

OF

CORDIA BANCORP INC.

The undersigned, on behalf of the corporation set forth below, pursuant to Title 13.1, Chapter 9, Article 11 of the Code of Virginia, states as follows:

1. The name of the corporation immediately prior to restatement is Cordia Bancorp Inc.

2. The restatement contains an amendment to the articles of incorporation.

3. The text of the amended and restated articles of incorporation is attached hereto.

4. The restatement was adopted by the corporation on April 30, 2014.

5. The restatement was proposed by the board of directors and submitted to the shareholders in accordance with the applicable provisions of the Virginia Stock Corporation Act at a meeting held on June 25, 2014.

The designation, number of outstanding shares, and number of votes entitled to be cast by each voting group entitled to vote separately on the amendment is as follows:

Class of shares	Number of outstanding shares	Number of votes entitled to be cast
Common stock	2,788,302	2,788,302

The total number of votes cast for and against the amendment by each voting group entitled to vote separately on the amendment is as follows:

Class of shares	Number of votes cast in favor	Number of votes cast against
Common stock	1,933,500	5,201

The number of votes cast for the amendment by each voting group was sufficient for approval by that voting group.

Executed in the name of the corporation on June 25, 2014 by:

/s/ Jack Zoeller

Jack Zoeller

President and Chief Executive Officer

SCC ID #07080815

SECOND

AMENDED AND RESTATED

ARTICLES OF INCORPORATION

OF

CORDIA BANCORP INC.

ARTICLE I

Name

The name of the corporation is Cordia Bancorp Inc. (herein the “Corporation”).

ARTICLE II

Purpose

The purpose for which the Corporation is organized is to act as a financial institution holding company and to transact any and all other lawful business, not required to be specifically stated in the Articles of Incorporation, for which corporation may be incorporated under the Virginia Stock Corporation Act.

ARTICLE III

Capital Stock

A.           Authorized Shares

The aggregate number of shares of all classes which the Corporation has authority to issue is 200,002,000, of which 200,000,000 are to be common shares, $0.01 par value per share, and of which 2,000 are to be preferred shares, $0.01 par value per share. The Board of Directors of the Corporation, without stockholder action, may, by adoption of an amendment of these Articles: (i) classify any unissued shares into one or more classes or into one or more series within one or more classes; (ii) reclassify any unissued shares of any class into one or more classes or into one or more series within one or more classes; or (iii) reclassify any unissued shares of any series of any class into one or more classes or into one or more series within one or more classes.

B.           Common Stock

1.          The shares of common stock that the Corporation shall have authority to issue shall consist of:

a.           One hundred twenty million (120,000,000) shares of common stock (“Common Stock”);

b.           Five million (5,000,000) shares of nonvoting common stock (“Nonvoting Common Stock”); and

c.           Seventy five million (75,000,000) shares of common stock not designated as part of a class or series pursuant to this Article III or any other provision of these Articles of Incorporation (“Undesignated Common Stock”).

2.          Undesignated Common Stock may be issued from time to time in one or more additional classes or series. The Board of Directors may determine, in whole or in part, the preferences, voting powers, qualifications and special or relative rights or privileges of any such class or series before the issuance of any shares of that class or series. The Board of Directors shall determine the number of shares constituting each class or series of Undesignated Common Stock and each class or series shall have a distinguishing designation.

3.          The Corporation may issue rights, options or warrants for the purchase of shares or other securities of the Corporation. The Board of Directors shall have the power to authorize, without any action by the stockholders, the issuance of rights, options or warrants and determine (i) the terms upon which the rights, options or warrants are issued and (ii) the terms, including the consideration for which the shares or other securities are to be issued. The authorization for the Corporation to issue such rights, options or warrants constitutes authorization of the issuance of the shares or other securities for which the rights, options or warrants are exercisable.

4.          Nonvoting Common Stock

Except as set forth in this subsection 4, the Common Stock and the Nonvoting Common Stock shall have the same rights and privileges, share ratably in all assets of the Corporation upon its liquidation, dissolution or winding-up, be entitled to receive dividends in the same amount per share and at the same time when, as and if declared by the Corporation’s board of directors, and be identical in all other respects as to all other matters, except voting.

(a)           The holders of Nonvoting Common Stock shall have no voting rights except as required by the Virginia Stock Corporation Act. Notwithstanding the foregoing, and in addition to any other vote required by law, the affirmative vote of the holders of a majority of the outstanding shares of Nonvoting Common Stock, voting separately as a class, shall be required to amend the Corporation’s Articles of Incorporation, as amended, to adversely affect the designation, preferences, limitations or relative rights of all or part of the shares of Nonvoting Common Stock. Where shares of Nonvoting Common Stock are entitled to vote, each holder of Nonvoting Common Stock shall have one vote in respect of each share of Nonvoting Common Stock held of record solely on the matters as to which such shares are entitled to vote and subject to the rights and limitations specified by the Virginia Stock Corporation Act.

(b)           In the event of any stock split, combination or other reclassification of shares of either the Common Stock or the Nonvoting Common Stock, the outstanding shares of the other class shall be proportionately split, combined or reclassified in a similar manner; provided, however, that in any such transaction, holders of Common Stock shall receive only shares of Common Stock in respect of their shares of Common Stock and holders of Nonvoting Common Stock shall receive only shares of Nonvoting Common Stock in respect of their shares of Nonvoting Common Stock.

(c)           No transfer of shares of Nonvoting Common Stock by the initial holder thereof shall be permitted, except (i) in a Permitted Transfer, (ii) to an Affiliate of the initial holder of the Nonvoting Common Stock to be transferred or (iii) to the Corporation. A “Permitted Transfer” means a transfer by a holder of Nonvoting Common Stock (i) in a widespread public distribution; (ii) in which no transferee (or group of associated transferees) would receive two percent (2%) or more of any class of voting securities of the Corporation; or (iii) to a transferee that would control more than fifty percent (50%) of the voting securities of the Corporation without any transfer from such holder of Nonvoting Common Stock. “Affiliate” means, with respect to any person, any person directly or indirectly, controlling, controlled by or under common control with, such other person. Each share of Nonvoting Common Stock shall be converted automatically into one share of Common Stock incident to a transfer of such share of Nonvoting Common Stock to a transferee in a Permitted Transfer. The issuance of certificates, if any, for shares of Common Stock upon conversion of Nonvoting Common Stock shall be made without charge to the holders of such shares for any issuance tax in respect thereof or other cost incurred by the Corporation in connection with such conversion and the related issuance. The Corporation shall cooperate with the timely conversion of Nonvoting Common Stock subject to compliance with applicable law and regulations.

(d)           The Corporation shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock or shares held in treasury for the Corporation, such number of its shares of Common Stock as shall from time to time be sufficient to effect the conversion of all outstanding shares of Nonvoting Common Stock.

(e)           In the event of any merger, consolidation, reclassification or other transaction in which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property, each share of Nonvoting Common Stock will at the same time be similarly exchanged or changed in an amount per whole share equal to the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, that each share of Common Stock would be entitled to receive as a result of such transaction, provided that at the election of the holder of shares of Nonvoting Common Stock, any securities issued with respect to the Nonvoting Common Stock shall be nonvoting under the resulting institution’s organizational documents to the same extent as the Nonvoting Common Stock is nonvoting and the Corporation shall make appropriate provisions (in form and substance reasonably satisfactory to the holders of a majority of the Nonvoting Common Stock then outstanding) and take such other actions necessary to ensure that the holders of the Nonvoting Common Stock shall retain securities with substantially the same rights and benefits, including the right to convert nonvoting common stock into common stock, as the Nonvoting Common Stock. Subject to the immediately preceding sentence, in the event the holders of Common Stock are provided the right to convert or exchange Common Stock for stock or securities, cash and/or any other property, then the holders of the Nonvoting Common Stock shall be provided the same right based upon the number of shares of Common Stock such holders would be entitled to receive if such shares of Nonvoting Common Stock were converted into shares of Common Stock immediately prior to such offering. In the event that the Corporation offers to repurchase shares of Common Stock from its shareholders generally, the Corporation shall offer to repurchase Nonvoting Common Stock pro rata based upon the number of shares of Common Stock such holders would be entitled to receive if such shares were converted into shares of Common Stock immediately prior to such repurchase. In the event of any pro rata subscription offer, rights offer or similar offer to holders of Common Stock, the Corporation shall provide the holders of the Nonvoting Common Stock the right to participate based upon the number of shares of Common Stock such holders would be entitled to receive if such shares were converted into shares of Common Stock immediately prior to such offering; provided that at the election of such holder, any shares issued with respect to the Nonvoting Common Stock shall be issued in the form of Nonvoting Common Stock rather than Common Stock.

C.           Preferred Stock

The Board of Directors of the Corporation, without stockholder action, may, by adoption of an amendment of these Articles, provide for the issuance of one or more classes or series of preferred shares and fix the terms, including the preferences, rights and limitations of each such class or series as may be permitted by the Virginia Stock Corporation Act. Except as provided in these Articles, there shall be no cumulative voting of any preferred stock in the election of directors.

D.           Preemptive Rights

No holder of any shares of any class or series or any other securities of the Corporation, whether now or hereafter authorized, shall have any preemptive right to subscribe for or purchase (i) any shares of any class or series or any other securities of the Corporation, (ii) any securities convertible into such shares; or (iii) any options, warrants or rights to purchase such shares or securities convertible into any such shares.

ARTICLE IV

Directors

A.           Classified Board of Directors

The Board of Directors shall consist of such number of individuals as shall be specified in or fixed in accordance with the Bylaws of the Corporation. Directors shall be divided into three classes, with each class containing one-third of the total, as near as may be. The term of office of the first class shall expire at the first annual stockholders’ meeting, the term of office of the second class shall expire at the annual stockholders’ meeting one year thereafter, and the term of office of the third class shall expire at the annual stockholders’ meeting two years thereafter, with each director to hold office until his or her successor shall have been duly elected and qualified. At each annual stockholders’ meeting thereafter, directors shall be elected to succeed those directors whose terms expire.

B.           Removal of Directors

Directors may be removed only with cause and then only by the affirmative vote of the holders of at least 66 2/3% of the shares entitled to vote in the election of directors.

C.           Vacancies

Subject to any rights provided in these Articles for holders of any class or series of preferred shares outstanding, any vacancies in the Board of Directors, including vacancies resulting from an increase in the number of directors, may be filled only by a majority vote of the directors then in office, though less than a quorum, and directors so chosen shall hold office for a term expiring at the next annual stockholders’ meeting and until their successors are duly elected and qualified.

ARTICLE V

Certain Stockholder Vote Requirements

Except as otherwise required by the Virginia State Corporation Act, the affirmative vote of the holders of a 66 2/3% of the issued and outstanding shares of capital shares entitled to vote shall be required to approve the following actions:

1.          The amendment of the Corporation’s Articles of Incorporation, except that the Board of Directors, without any action by the stockholders, may amend these Articles to the fullest extent allowed under the Virginia State Corporation Act.

2.          To the extent stockholder approval is required under the Virginia State Corporation Act for a merger or consolidation, the merger or consolidation of the Corporation with or into any other corporation.

3.          To the extent stockholder approval is required under the Virginia State Corporation Act for the sale, lease or exchange of the Corporation’s property and assets, the sale, lease or exchange of the Corporation’s property and assets.

4.          The dissolution of the Corporation.

ARTICLE VI

Evaluation of Business Combinations

The Board of Directors shall, in connection with the exercise of its business judgment involving any actual or proposed transaction which would or may involve a change in control of the Corporation (whether by purchases of shares of any class or any other securities of the Corporation in the open market or otherwise, tender offer, merger, consolidation, dissolution, liquidation, sale of all or substantially all of the assets of the Corporation, proxy solicitation (other than on behalf of the Board of Directors or otherwise), in determining what is in the best interests of the Corporation and its stockholders and in making any recommendation to its stockholders, give due consideration to all relevant factors, including, but not limited to the following: (1) the economic effect, both immediate and long-term, upon the Corporation’s stockholders, including stockholders, if any, not to participate in the transaction; (2) the social and economic effect on the employees, depositors and customers of, and others dealing with, the Corporation and its subsidiaries and on the communities in which the Corporation and its subsidiaries operate or are located; (3) whether the proposal is acceptable based on the historical and current operating results or financial condition of the Corporation; (4) whether a more favorable price could be obtained for the Corporation’s stock or other securities in the future; (5) the reputation and business practices of the offeror and its management and affiliates as they would affect the employees; (6) the future value of the stock or any other securities of the Corporation; and (7) any antitrust or other legal and regulatory issues that are raised by the proposal. If the Board of Directors determines that any actual or proposed transaction which would or may involve a change in control of the Corporation should be rejected, it may take any lawful action to accomplish its purpose, including, but not limited to, any and all of the following: advising Stockholders not to accept the proposal; instituting litigation against the party making the proposal; filing complaints with governmental and regulatory authorities; acquiring the shares or any of the securities of the Corporation; selling or otherwise issuing authorized but unissued shares, other securities or treasury stock or granting options with respect thereto; selling any of the assets of the Corporation; acquiring a company to create an antitrust or other regulatory problem for the party making the proposal; and obtaining a more favorable offer from another individual or entity.

ARTICLE VII

Amendment of Bylaws

In furtherance and not in limitation of the powers conferred by statute, the Board of Directors of the Corporation is expressly authorized to adopt, repeal, alter, amend and rescind the bylaws of the Corporation. Notwithstanding any other provision of these Articles or the bylaws of the Corporation (and notwithstanding the fact that some lesser percentage may be specified by law), the bylaws shall not be adopted, repealed, altered, amended or rescinded by the stockholders of the Corporation except by the vote of the holders of not less than 66 2/3% of the outstanding capital shares of the Corporation entitled to vote generally in the election of directors (considered for this purpose as one class) cast at a meeting of the stockholders called for that purpose (provided that notice of such proposed adoption, repeal, alteration, amendment or rescission is included in the notice of such meeting), or, as set forth above, by the Board of Directors.

ARTICLE VIII

Limitation of Officers’ and Directors’ Liability

An officer or director of the Corporation, as such, shall not be liable to the Corporation or its stockholders for money damages in any proceeding brought by or in the right of the Corporation or brought by or on behalf of stockholders of the Corporation, except to the extent otherwise required by Virginia law. If Virginia law is amended or enacted after the date of filing of these Articles to further eliminate or limit the personal liability of officers and directors, then the liability of officers and directors of the Corporation shall be eliminated or limited to the fullest extent permitted by Virginia law, as so amended. Any repeal or modification of the foregoing paragraph by the stockholders of the Corporation shall not adversely affect any right or protection of a director of the Corporation existing at the time of such repeal or modification.

ARTICLE IX

Indemnification

The Corporation shall indemnify to the full extent permitted by law any person made or threatened to be made a party to any action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that such person or such person’s testator, intestate, personal representative of spouse is or was a director or officer of the Corporation, is or was a director, officer, trustee, member, stockholder, partner, incorporator or liquidator of a Subsidiary of the Corporation, or serves or served at the request of the Corporation as a director, officer, trustee, member, stockholder, partner, incorporator or liquidator of or in any other capacity for any other enterprise. Expenses, including attorneys’ fees, incurred by any such person in defending any such action, suit or proceeding shall be paid or reimbursed by the Corporation promptly upon demand by such person and, if any such demand is made in advance of the final disposition of any such action, suit or proceeding, promptly upon receipt by the Corporation of an undertaking of such person to repay such expenses if it shall ultimately be determined that such person is not entitled to be indemnified by the Corporation. The rights provided to any person by this Article IX shall be enforceable against the Corporation by such person, who shall be presumed to have relied upon it in serving or continuing to serve as a director or officer or in such other capacity as provided above. In addition, the rights provided to any person by this Article IX shall survive the termination of such person as any such director, officer, trustee, member, stockholder, partner, incorporator or liquidator and, insofar as such person served at the request of the Corporation as a director, officer, trustee, member, stockholder, partner, incorporator or liquidator of or in any other capacity for any other enterprise, shall survive the termination of such request as to service prior to termination of such request. No amendment of this Article IX shall impair the rights of any person arising at any time with respect to events occurring prior to such amendment.

Notwithstanding anything contained in this Article IX, except for proceedings to enforce rights provided in this Article IX, the Corporation shall not be obligated under this Article IX to provide any indemnification or any payment or reimbursement of expenses to any director, officer or other person in connection with a proceeding (or part thereof) initiated by such person (which shall not include counterclaims or crossclaims initiated by others) unless the Board of Directors has authorized or consented to such proceeding (or part thereof) in a resolution adopted by the board.

For purposes of this Article IX, the term “Subsidiary” shall mean any corporation, partnership, limited liability company or other entity in which the Corporation owns, directly or indirectly, a majority of the economic or voting ownership interest; the term “other enterprise” shall include any corporation, partnership, limited liability company, joint venture, trust, association or other unincorporated organization or other entity and any employee benefit plan; the term “officer,” when used with respect to the Corporation, shall refer to any officer elected or appointed pursuant to the Corporation’s Bylaws, when used with respect to a Subsidiary or other enterprise that is a corporation, shall refer to any person elected or appointed pursuant to the bylaws of such Subsidiary or other enterprise or chosen in such manner as is prescribed by the bylaws of such Subsidiary or other enterprise or determined by the board of directors of such Subsidiary or other enterprise, and when used with respect to a Subsidiary or other enterprise that is not a corporation or is organized in a foreign jurisdiction, the term “officer” shall include in addition to any officer of such entity, any person serving in a similar capacity or as the manager of such entity; service “at the request of the Corporation” shall include service as a director or officer of the Corporation which imposes duties on, or involves services by, such director or officer with respect to an employee benefit plan, its participants or beneficiaries; any excise taxes assessed on a person with respect to an employee benefit plan shall be deemed to be indemnifiable expenses; and action by a person with respect to an employee benefit plan which such person reasonably believes to be in the interest of the participants and beneficiaries of such plan shall be deemed to be action not opposed to the best interests of the Corporation.

To the extent authorized from time to time by the Board of Directors, the Corporation may provide to (i) any one or more employees and other agents of the Corporation, (ii) any one or more officers, employees and other agents of any Subsidiary and (iii) any one or more directors, officers, employees and other agents of any other enterprise, rights of indemnification and to receive payment or reimbursement of expenses, including attorneys’ fees, that are similar to the rights conferred in this Article IX on directors and officers of the Corporation or any Subsidiary or other enterprise. Any such rights shall have the same force and effect as they would have if they were conferred in this Article IX.

Nothing in this Article IX shall limit the power of the Corporation or the Board of Directors to provide rights of indemnification and to make payment and reimbursement of expenses, including attorneys’ fees, to directors, officers, employees, agents and other persons otherwise than pursuant to this Article IX.

ARTICLE X

Initial Registered Office and Registered Agent

The mailing address of the Corporation’s initial registered office in the Commonwealth of Virginia is 4701 Cox Road, Suite 301, Glen Allen, Virginia 23060-6802, County of Henrico, and the name of the Corporation’s initial registered agent at that office is CT Corporation System, a domestic stock corporation authorized to transact business in Virginia.

EX-31.1

Exhibit 31.1

 Section 302 Certification

I, Jack Zoeller, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Cordia Bancorp Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

and

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2014	/s/ Jack Zoeller
	Jack Zoeller
	Chief Executive Officer

EX-31.2

Exhibit 31.2

Section 302 Certification

I, Mark A. Severson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Cordia Bancorp Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

and

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2014	/s/ Mark Severson
	Mark Severson
	Chief Financial Officer
	(principal financial officer)

EX-32

Exhibit 32

CERTFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES OXLEY ACT OF 2002

The undersigned executive officers of Cordia Bancorp Inc. (the “Company”) hereby certify that this Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by this report.

Date: August 8, 2014	/s/ Jack Zoeller
	Jack Zoeller
	Chairman and Chief Executive Officer
	(principal executive officer)

Date: August 8, 2014	/s/ Mark Severson
	Mark Severson
	Chief Financial Officer
	(principal financial officer)

XML

Loans, Allowance for Loan Losses and Credit Quality (Details 3) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Loans acquired with credit quality	$ 196,675	$ 165,441
Loans acquired with deteriorating credit quality	7,610	8,566
Total loans	204,285	174,007
Highest Quality [Member]
Loans acquired with credit quality	0	0
Above Average Quality [Member]
Loans acquired with credit quality	78,844	62,999
Satisfactory [Member]
Loans acquired with credit quality	67,000	52,298
Pass [Member]
Loans acquired with credit quality	48,593	42,255
Special Mention [Member]
Loans acquired with credit quality	650	6,335
Substandard [Member]
Loans acquired with credit quality	1,588	1,554
Doubtful [Member]
Loans acquired with credit quality	0	0
Commercial Real Estate [Member] | Acquisition, Development, and Construction [Member]
Loans acquired with credit quality	1,280	2,391
Loans acquired with deteriorating credit quality	983	1,084
Total loans	2,263	3,475
Commercial Real Estate [Member] | Acquisition, Development, and Construction [Member] | Highest Quality [Member]
Loans acquired with credit quality	0	0
Commercial Real Estate [Member] | Acquisition, Development, and Construction [Member] | Above Average Quality [Member]
Loans acquired with credit quality	0	0
Commercial Real Estate [Member] | Acquisition, Development, and Construction [Member] | Satisfactory [Member]
Loans acquired with credit quality	229	325
Commercial Real Estate [Member] | Acquisition, Development, and Construction [Member] | Pass [Member]
Loans acquired with credit quality	781	1,500
Commercial Real Estate [Member] | Acquisition, Development, and Construction [Member] | Special Mention [Member]
Loans acquired with credit quality	0	299
Commercial Real Estate [Member] | Acquisition, Development, and Construction [Member] | Substandard [Member]
Loans acquired with credit quality	270	267
Commercial Real Estate [Member] | Acquisition, Development, and Construction [Member] | Doubtful [Member]
Loans acquired with credit quality	0	0
Commercial Real Estate [Member] | Non-Owner Occupied [Member]
Loans acquired with credit quality	33,579	27,080
Loans acquired with deteriorating credit quality	1,491	1,526
Total loans	35,070	28,606
Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Highest Quality [Member]
Loans acquired with credit quality	0	0
Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Above Average Quality [Member]
Loans acquired with credit quality	2,018	2,078
Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Satisfactory [Member]
Loans acquired with credit quality	16,030	10,563
Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Pass [Member]
Loans acquired with credit quality	15,405	12,990
Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Special Mention [Member]
Loans acquired with credit quality	126	1,449
Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Substandard [Member]
Loans acquired with credit quality	0	0
Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Doubtful [Member]
Loans acquired with credit quality	0	0
Commercial Real Estate [Member] | Owner Occupied [Member]
Loans acquired with credit quality	50,323	46,658
Loans acquired with deteriorating credit quality	3,253	3,842
Total loans	53,576	50,500
Commercial Real Estate [Member] | Owner Occupied [Member] | Highest Quality [Member]
Loans acquired with credit quality	0	0
Commercial Real Estate [Member] | Owner Occupied [Member] | Above Average Quality [Member]
Loans acquired with credit quality	3,132	2,966
Commercial Real Estate [Member] | Owner Occupied [Member] | Satisfactory [Member]
Loans acquired with credit quality	28,538	25,264
Commercial Real Estate [Member] | Owner Occupied [Member] | Pass [Member]
Loans acquired with credit quality	18,394	14,606
Commercial Real Estate [Member] | Owner Occupied [Member] | Special Mention [Member]
Loans acquired with credit quality	0	3,486
Commercial Real Estate [Member] | Owner Occupied [Member] | Substandard [Member]
Loans acquired with credit quality	259	336
Commercial Real Estate [Member] | Owner Occupied [Member] | Doubtful [Member]
Loans acquired with credit quality	0	0
Commercial and Industrial [Member]
Loans acquired with credit quality	23,360	19,615
Loans acquired with deteriorating credit quality	1,245	1,470
Total loans	24,605	21,085
Commercial and Industrial [Member] | Highest Quality [Member]
Loans acquired with credit quality	0	0
Commercial and Industrial [Member] | Above Average Quality [Member]
Loans acquired with credit quality	2,015	2,170
Commercial and Industrial [Member] | Satisfactory [Member]
Loans acquired with credit quality	12,921	8,290
Commercial and Industrial [Member] | Pass [Member]
Loans acquired with credit quality	7,557	8,128
Commercial and Industrial [Member] | Special Mention [Member]
Loans acquired with credit quality	81	268
Commercial and Industrial [Member] | Substandard [Member]
Loans acquired with credit quality	786	759
Commercial and Industrial [Member] | Doubtful [Member]
Loans acquired with credit quality	0	0
Guaranteed Student Loans [Member]
Loans acquired with credit quality	70,624	55,427
Loans acquired with deteriorating credit quality	0	0
Total loans	70,624	55,427
Guaranteed Student Loans [Member] | Highest Quality [Member]
Loans acquired with credit quality	0	0
Guaranteed Student Loans [Member] | Above Average Quality [Member]
Loans acquired with credit quality	70,624	55,427
Guaranteed Student Loans [Member] | Satisfactory [Member]
Loans acquired with credit quality	0	0
Guaranteed Student Loans [Member] | Pass [Member]
Loans acquired with credit quality	0	0
Guaranteed Student Loans [Member] | Special Mention [Member]
Loans acquired with credit quality	0	0
Guaranteed Student Loans [Member] | Substandard [Member]
Loans acquired with credit quality	0	0
Guaranteed Student Loans [Member] | Doubtful [Member]
Loans acquired with credit quality	0	0
Consumer [Member] | Residential Mortgage [Member]
Loans acquired with credit quality	8,322	6,966
Loans acquired with deteriorating credit quality	186	190
Total loans	8,508	7,156
Consumer [Member] | Residential Mortgage [Member] | Highest Quality [Member]
Loans acquired with credit quality	0	0
Consumer [Member] | Residential Mortgage [Member] | Above Average Quality [Member]
Loans acquired with credit quality	49	73
Consumer [Member] | Residential Mortgage [Member] | Satisfactory [Member]
Loans acquired with credit quality	4,133	3,965
Consumer [Member] | Residential Mortgage [Member] | Pass [Member]
Loans acquired with credit quality	4,016	2,710
Consumer [Member] | Residential Mortgage [Member] | Special Mention [Member]
Loans acquired with credit quality	124	203
Consumer [Member] | Residential Mortgage [Member] | Substandard [Member]
Loans acquired with credit quality	0	15
Consumer [Member] | Residential Mortgage [Member] | Doubtful [Member]
Loans acquired with credit quality	0	0
Consumer [Member] | Home Equity Lines of Credit [Member]
Loans acquired with credit quality	8,653	6,796
Loans acquired with deteriorating credit quality	452	454
Total loans	9,105	7,250
Consumer [Member] | Home Equity Lines of Credit [Member] | Highest Quality [Member]
Loans acquired with credit quality	0	0
Consumer [Member] | Home Equity Lines of Credit [Member] | Above Average Quality [Member]
Loans acquired with credit quality	961	205
Consumer [Member] | Home Equity Lines of Credit [Member] | Satisfactory [Member]
Loans acquired with credit quality	4,746	3,541
Consumer [Member] | Home Equity Lines of Credit [Member] | Pass [Member]
Loans acquired with credit quality	2,354	2,243
Consumer [Member] | Home Equity Lines of Credit [Member] | Special Mention [Member]
Loans acquired with credit quality	319	630
Consumer [Member] | Home Equity Lines of Credit [Member] | Substandard [Member]
Loans acquired with credit quality	273	177
Consumer [Member] | Home Equity Lines of Credit [Member] | Doubtful [Member]
Loans acquired with credit quality	0	0
Consumer [Member] | Other [Member]
Loans acquired with credit quality	534	508
Loans acquired with deteriorating credit quality	0	0
Total loans	534	508
Consumer [Member] | Other [Member] | Highest Quality [Member]
Loans acquired with credit quality	0	0
Consumer [Member] | Other [Member] | Above Average Quality [Member]
Loans acquired with credit quality	45	80
Consumer [Member] | Other [Member] | Satisfactory [Member]
Loans acquired with credit quality	403	350
Consumer [Member] | Other [Member] | Pass [Member]
Loans acquired with credit quality	86	78
Consumer [Member] | Other [Member] | Special Mention [Member]
Loans acquired with credit quality	0	0
Consumer [Member] | Other [Member] | Substandard [Member]
Loans acquired with credit quality	0	0
Consumer [Member] | Other [Member] | Doubtful [Member]
Loans acquired with credit quality	$ 0	$ 0

XML

Stock-Based Compensation (Details 1) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Stock Options Outstanding	136,056	115,656
Wgt. Avg Exerciese Price Outstanding	$ 7.15	$ 7.68
Wgt. Avg. Remaining Contractual Life	8 years 2 months 26 days	8 years 5 months 8 days
Stock Options Exercisable	44,416
Wgt. Avg Exerciese Price Exercisable	$ 10.05
Exercise Price Range One [Member]
Stock Options Outstanding	109,232
Wgt. Avg Exerciese Price Outstanding	$ 5.17
Wgt. Avg. Remaining Contractual Life	8 years 7 months 20 days
Stock Options Exercisable	29,876
Wgt. Avg Exerciese Price Exercisable	$ 5.49
Range of Exercise Prices, Minimum	$ 3.83
Range of Exercise Prices, Maximum	$ 7.00
Exercise Price Range Two [Member]
Stock Options Outstanding	24,168
Wgt. Avg Exerciese Price Outstanding	$ 10.26
Wgt. Avg. Remaining Contractual Life	7 years 2 months 26 days
Stock Options Exercisable	11,885
Wgt. Avg Exerciese Price Exercisable	$ 10.32
Range of Exercise Prices, Minimum	$ 7.01
Range of Exercise Prices, Maximum	$ 12.00
Exercise Price Range Three [Member]
Stock Options Outstanding	2,656
Wgt. Avg Exerciese Price Outstanding	$ 60.24
Wgt. Avg. Remaining Contractual Life	1 year 1 month 17 days
Stock Options Exercisable	2,656
Wgt. Avg Exerciese Price Exercisable	$ 60.24
Range of Exercise Prices, Minimum	$ 12.01
Range of Exercise Prices, Maximum	$ 60.24

XML

Intangible Assets (Detail Textual) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
Finite-lived Intangible Assets Acquired	$ 249
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	36
Finite-Lived Intangible Assets, Amortization Expense, Year Five	$ 30

XML

Stock-Based Compensation (Details 2)	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Weighted-Average Volatility	30.00%	30.00%
Expected Term (In years)	7 years	7 years
Risk-Free Rate	2.17%	1.42%
Maximum [Member]
Expected Volatility	30.00%	30.00%
Minimum [Member]
Expected Volatility	30.00%	30.00%

XML

Loans, Allowance for Loan Losses and Credit Quality (Details Textual) (USD $) In Millions, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014 Loan	Dec. 31, 2013 Loan
Fair Value, Concentration of Risk, Retained Interest	98.00%
Financing Receivable, Modifications, Number of Contracts	2	5
Financing Receivable, Modifications, Recorded Investment	$ 2.8	$ 2.0
Loans Receivable Accruing Troubled Debt Restructured Loans	$ 1.8	$ 1.9

XML

Securities (Details 2) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Available For Sale Securities, Amortized Cost
Over five years within ten years	$ 513
Over ten years	45,452
Total	45,965	24,616
Available For Sale Securities, Estimated Fair Value
Over five years within ten years	515
Over ten years	45,320
Total	45,835	24,567
Held-to-maturity Securities, Carry Value
Over five years within ten years	3,727
Over ten years	18,112
Total	21,839	14,753
Held-to-maturity Securities, Fair Value
Over five years within ten years	3,776
Over ten years	18,183
Total	$ 21,959	$ 14,597

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Stock-Based Compensation (Details 4) (Restricted Stock [Member], USD $)	6 Months Ended
	Jun. 30, 2014
Restricted Stock [Member]
Nonvested, Opening Balance	11,700
Issued	87,658
Vested	11,718
Forfeited	0
Nonvested, Ending Balance	87,640
Nonvested, Wgt. Avg. Grant Date Fair Value Opening Balance	$ 4.41
Issued	$ 4.20
Vested	$ 4.23
Forfeited	$ 0
Nonvested, Wgt. Avg. Grant Date Fair Value Ending Balance	$ 4.22

XML

Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2014

Statement of Comprehensive Income [Abstract]

Comprehensive Income (Loss) [Table Text Block]

The changes in accumulated other comprehensive income (loss) for the six months ended June 30, 2014 and 2013 are summarized as follows:

	Accumulated Other Comprehensive Income (loss)
(dollars in thousands)	Six Months Ended June 30,
	2014		2013
Beginning balance	$	(384)	$	56
Unrealized holding losses on available for sale securities		(81)		(280)
Amortization of AFS to HTM reclassification adjustment		25		-
Net current period other comprehensive income		(56)		(280)
Ending balance	$	(440)	$	(224)

Schedule Of Amounts Reclassified From Accumulated Other Comprehensive Income Loss [Table Text Block]

The following table presents information on amounts reclassified out of accumulated other comprehensive income (loss), by category, during the periods indicated:

(in thousands)	Three Months Ended June 30,				Six Months Ended June 30,				Affected Line Item on
	2014		2013		2014		2013		Condensed Consolidated Statement of Operations
Available-for-sale securities
Realized gains on sales of securities	$	-	$	-	$	64	$	-	Net gain on sale of available-for-sale securities

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Fair Value Measurements (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
U.S. Government Agencies [Member]
Assets, Fair Value Disclosure, Recurring	$ 3,474	$ 7,041
U.S. Government Agencies [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure, Recurring	0	0
U.S. Government Agencies [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure, Recurring	3,474	7,041
U.S. Government Agencies [Member] | Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure, Recurring	0	0
Agency Guaranteed Mortgage- Backed Securities [Member]
Assets, Fair Value Disclosure, Recurring	42,361	17,526
Agency Guaranteed Mortgage- Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure, Recurring	0	0
Agency Guaranteed Mortgage- Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure, Recurring	42,361	17,526
Agency Guaranteed Mortgage- Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure, Recurring	$ 0	$ 0

XML

Loans, Allowance for Loan Losses and Credit Quality (Details 6) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
With no related allowance recorded Recorded Investment	$ 2,878	$ 2,829
With no related allowance recorded Unpaid Principal	2,878	2,829
With no related allowance recorded Average Recorded Investment	3,117	3,129
With no related allowance recorded Interest Recorded	61	159
With an allowance recorded Recorded Investment	52	0
With an allowance recorded Unpaid Principal	52	0
With an allowance recorded Related Allowance	35
With an allowance recorded Average Recorded Investment	52	0
With an allowance recorded Interest Interest Recorded	0	0
Commercial Real Estate [Member] | Acquisition, Development, and Construction [Member]
With no related allowance recorded Recorded Investment	270	267
With no related allowance recorded Unpaid Principal	270	267
With no related allowance recorded Average Recorded Investment	269	267
With no related allowance recorded Interest Recorded	8	19
With an allowance recorded Recorded Investment	0	0
With an allowance recorded Unpaid Principal	0	0
With an allowance recorded Average Recorded Investment	0	0
With an allowance recorded Interest Interest Recorded	0	0
Commercial Real Estate [Member] | Non-Owner Occupied [Member]
With no related allowance recorded Recorded Investment	1,342	1,352
With no related allowance recorded Unpaid Principal	1,342	1,352
With no related allowance recorded Average Recorded Investment	1,648	1,652
With no related allowance recorded Interest Recorded	44	83
With an allowance recorded Recorded Investment	0	0
With an allowance recorded Unpaid Principal	0	0
With an allowance recorded Average Recorded Investment	0	0
With an allowance recorded Interest Interest Recorded	0	0
Commercial Real Estate [Member] | Owner Occupied [Member]
With no related allowance recorded Recorded Investment	259	259
With no related allowance recorded Unpaid Principal	259	259
With no related allowance recorded Average Recorded Investment	259	259
With no related allowance recorded Interest Recorded	0	0
With an allowance recorded Recorded Investment	0	0
With an allowance recorded Unpaid Principal	0	0
With an allowance recorded Average Recorded Investment	0	0
With an allowance recorded Interest Interest Recorded	0	0
Commercial and Industrial [Member]
With no related allowance recorded Recorded Investment	734	759
With no related allowance recorded Unpaid Principal	734	759
With no related allowance recorded Average Recorded Investment	667	759
With no related allowance recorded Interest Recorded	3	44
With an allowance recorded Recorded Investment	52	0
With an allowance recorded Unpaid Principal	52	0
With an allowance recorded Related Allowance	35
With an allowance recorded Average Recorded Investment	52	0
With an allowance recorded Interest Interest Recorded	0	0
Consumer [Member] | Residential Mortgage [Member]
With no related allowance recorded Recorded Investment	0	15
With no related allowance recorded Unpaid Principal	0	15
With no related allowance recorded Average Recorded Investment	0	15
With no related allowance recorded Interest Recorded	0	5
With an allowance recorded Recorded Investment	0	0
With an allowance recorded Unpaid Principal	0	0
With an allowance recorded Average Recorded Investment	0	0
With an allowance recorded Interest Interest Recorded	0	0
Consumer [Member] | Home Equity Lines of Credit [Member]
With no related allowance recorded Recorded Investment	273	177
With no related allowance recorded Unpaid Principal	273	177
With no related allowance recorded Average Recorded Investment	274	177
With no related allowance recorded Interest Recorded	6	8
With an allowance recorded Recorded Investment	0	0
With an allowance recorded Unpaid Principal	0	0
With an allowance recorded Average Recorded Investment	0	0
With an allowance recorded Interest Interest Recorded	0	0
Consumer [Member] | Other [Member]
With no related allowance recorded Recorded Investment	0	0
With no related allowance recorded Unpaid Principal	0	0
With no related allowance recorded Average Recorded Investment		0
With no related allowance recorded Interest Recorded	0	0
With an allowance recorded Recorded Investment	0	0
With an allowance recorded Unpaid Principal	0	0
With an allowance recorded Average Recorded Investment	0	0
With an allowance recorded Interest Interest Recorded	$ 0	$ 0

XML

Loans, Allowance for Loan Losses and Credit Quality (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2012
Contract principal balance	$ 7,667	$ 8,689
Accretable discount	(52)	(62)
Nonaccretable discount	(5)	(61)	(61)	(165)
Book value of loans	$ 7,610	$ 8,566

XML

Fair Value Measurements (Details 3) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Other Real Estate Owned [Member]
Fair value Measurements Quantitative Information Regarding Level Three	$ 1,543	$ 1,545
Valuation Techniques	Discounted appraised value	Discounted appraised value
Unobservable Inputs	Discount for lack of marketability	Discount for lack of marketability
Fair Value Inputs, Discount Rate	13.00%	14.00%
Other Real Estate Owned [Member] | Minimum [Member]
Fair Value Inputs, Discount Rate	6.00%	6.00%
Other Real Estate Owned [Member] | Maximum [Member]
Fair Value Inputs, Discount Rate	29.00%	29.00%
Impaired Loan [Member] | Commercial and Industrial [Member]
Fair value Measurements Quantitative Information Regarding Level Three	$ 17
Valuation Techniques	Contract review
Unobservable Inputs	Management discount based on underlying collateral characteristics and sales contract
Fair Value Inputs, Discount Rate	67.00%

XML

Other Comprehensive Income (Loss) (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Realized gains on sales of securities	$ 0	$ 0	$ 64	$ 0

XML

Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2014
Balance at Begining Period	$ 130	$ 139
Amortization	(9)	(18)
Balance at Ending Period	$ 121	$ 121

XML

Earnings Per Share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 3. Earnings Per Share

Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance.

Options to purchase 136 thousand shares of the Company’s common stock were not included in the computation of earnings per share because the effect would have been anti-dilutive due to loss in 2014.

The calculation for basic and diluted earnings per common share for the three months and six months ended June 30, 2014 and 2013 are as follows:

	Three months ended June 30,				Six months ended June 30,
(dollars in thousands)	2014		2013		2014		2013
Net income (loss) attributable to Company	$	(270)	$	261	$	(554)	$	482
Weighted average basic shares outstanding		3,017,772		2,764,090		2,898,047		2,431,019
Basic income (loss) per common share	$	(0.09)	$	0.09	$	(0.19)	$	0.20
Weighted average dilutive shares outstanding		3,017,772		2,775,802		2,898,047		2,444,923
Diluted income (loss) per common share	$	(0.09)	$	0.09	$	(0.19)	$	0.20

For the periods ended June 30, 2014 and 2013, 578,125 shares of unvested Common Stock were excluded from the computation of basic and diluted earnings per common share as these are performance based, nonvoting shares deemed more unlikely, than likely, to vest. All other vested and non-vested restricted common shares, which carry all rights and privilege of a stockholder with respect to the stock, including the right to vote, were included in the per common share calculation.

XML

Preferred Stock Issuance and Conversion (Details Textual) (USD $)			0 Months Ended	1 Months Ended			1 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Apr. 10, 2014 Redeemable Convertible Preferred Stock [Member]	Jun. 25, 2014 Series A Preferred Stock [Member]	Jun. 30, 2014 Non-Voting [Member]	Apr. 10, 2014 Non-Voting [Member] Redeemable Convertible Preferred Stock [Member]	Jun. 25, 2014 Non-Voting [Member] Series A Preferred Stock [Member]	Jun. 25, 2014 Voting [Member] Series A Preferred Stock [Member]
Convertible Preferred Stock, Shares Issued upon Conversion						363		10,000
Sale of Stock, Price Per Share						$ 0.01
Purchase Price Of Convertible Preferred Stock			$ 42,500
Preferred Stock Conversion Price				$ 4.25
Proceeds from Issuance of Preferred Stock and Preference Stock			$ 15,400,000
Common Stock, Shares Authorized	120,000,000	120,000,000			5,000,000
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01			$ 0.01
Common Stock, Shares, Outstanding	5,105,344	2,788,302			1,400,437
Stock Issued During Period, Shares, New Issues				3,629,871			1,400,437	2,229,434

XML

Loans, Allowance for Loan Losses and Credit Quality (Details 7) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Beginning balance	$ 1,489	$ 2,110
Charge-offs	(402)	(701)
Recoveries	91	19
Net Charge-offs (recoveries)	(311)	(682)
Provision (recovery)	229	134
Ending balance	1,407	1,562
Commercial Real Estate [Member] | Acquisition, Development, and Construction [Member]
Beginning balance	300	229
Charge-offs	(6)	0
Recoveries	3	1
Net Charge-offs (recoveries)	(3)	1
Provision (recovery)	(101)	(107)
Ending balance	196	123
Commercial Real Estate [Member] | Non-Owner Occupied [Member]
Beginning balance	39	231
Charge-offs	(114)	0
Recoveries	47	0
Net Charge-offs (recoveries)	(67)	0
Provision (recovery)	149	57
Ending balance	121	288
Commercial Real Estate [Member] | Owner Occupied [Member]
Beginning balance	322	350
Charge-offs	0	(289)
Recoveries	0	0
Net Charge-offs (recoveries)	0	(289)
Provision (recovery)	(158)	483
Ending balance	164	544
Commercial and Industrial [Member]
Beginning balance	377	782
Charge-offs	(17)	0
Recoveries	18	18
Net Charge-offs (recoveries)	1	18
Provision (recovery)	131	(546)
Ending balance	509	254
Guaranteed Student Loans [Member]
Beginning balance	268	0
Charge-offs	(265)	(39)
Recoveries	0	0
Net Charge-offs (recoveries)	(265)	(39)
Provision (recovery)	191	295
Ending balance	194	256
Consumer [Member] | Residential Mortgage [Member]
Beginning balance	120	50
Charge-offs	0	0
Recoveries	2	0
Net Charge-offs (recoveries)	2	0
Provision (recovery)	63	2
Ending balance	185	52
Consumer [Member] | Home Equity Lines of Credit [Member]
Beginning balance	20	457
Charge-offs	0	(365)
Recoveries	2	0
Net Charge-offs (recoveries)	2	(365)
Provision (recovery)	(11)	(51)
Ending balance	11	41
Consumer [Member] | Other [Member]
Beginning balance	43	11
Charge-offs	0	(8)
Recoveries	19	0
Net Charge-offs (recoveries)	19	(8)
Provision (recovery)	(35)	1
Ending balance	$ 27	$ 4

XML

Earnings Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Net income (loss) attributable to Company	$ (270)	$ 261	$ (554)	$ 482
Weighted average basic shares outstanding	3,017,772	2,764,090	2,898,047	2,431,019
Basic income (loss) per common share	$ (0.09)	$ 0.09	$ (0.19)	$ 0.20
Weighted average dilutive shares outstanding	3,017,772	2,775,802	2,898,047	2,444,923
Diluted income (loss) per common share	$ (0.09)	$ 0.09	$ (0.19)	$ 0.20

XML

Business Combination (Details Textual) (USD $) In Millions, except Share data, unless otherwise specified	0 Months Ended
	Dec. 10, 2010	Mar. 29, 2013
Business Acquisition, Purchase Price Allocation, Goodwill Amount	$ 5.9
Bank of Virginia [Member]
Stock Issued During Period, Shares, New Issues	1,355,263
Equity Method Investment, Ownership Percentage	59.80%	100.00%
Business Acquisition Share Issued Per Share Of Minority Share Of Acquire		0.664

XML

Stock-Based Compensation (Details 3) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
Total intrinsic value of options exercised:	$ 0
Total fair value of shares vested:	$ 26,716
Weighted-average period over which nonvested awards are expected to be recognized:	1 year 4 months 17 days

XML

Loans, Allowance for Loan Losses and Credit Quality (Details 8) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2012
Allowance for loan losses for loans
Individually evaluated for impairment	$ 35	$ 0
Collectively evaluated for impairment	1,332	1,255
Loans acquired with deteriorated credit quality	40	234
Ending balance	1,407	1,489	1,562	2,110
Gross loan balances
Individually evaluated for impairment	2,930	2,829
Collectively evaluated for impairment	193,745	162,612
Loans acquired with deteriorated credit quality	7,610	8,566
Ending balance	204,285	174,007
Commercial Real Estate [Member] | Acquisition, Development, and Construction [Member]
Allowance for loan losses for loans
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	156	260
Loans acquired with deteriorated credit quality	40	40
Ending balance	196	300	123	229
Gross loan balances
Individually evaluated for impairment	270	267
Collectively evaluated for impairment	1,010	2,124
Loans acquired with deteriorated credit quality	983	1,084
Ending balance	2,263	3,475
Commercial Real Estate [Member] | Non-Owner Occupied [Member]
Allowance for loan losses for loans
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	121	39
Loans acquired with deteriorated credit quality	0	0
Ending balance	121	39	288	231
Gross loan balances
Individually evaluated for impairment	1,342	1,352
Collectively evaluated for impairment	32,237	25,728
Loans acquired with deteriorated credit quality	1,491	1,526
Ending balance	35,070	28,606
Commercial Real Estate [Member] | Owner Occupied [Member]
Allowance for loan losses for loans
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	164	128
Loans acquired with deteriorated credit quality	0	194
Ending balance	164	322	544	350
Gross loan balances
Individually evaluated for impairment	259	259
Collectively evaluated for impairment	50,064	46,399
Loans acquired with deteriorated credit quality	3,253	3,842
Ending balance	53,576	50,500
Commercial and Industrial [Member]
Allowance for loan losses for loans
Individually evaluated for impairment	35	0
Collectively evaluated for impairment	474	377
Loans acquired with deteriorated credit quality	0	0
Ending balance	509	377	254	782
Gross loan balances
Individually evaluated for impairment	786	759
Collectively evaluated for impairment	22,574	18,856
Loans acquired with deteriorated credit quality	1,245	1,470
Ending balance	24,605	21,085
Guaranteed Student Loans [Member]
Allowance for loan losses for loans
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	194	268
Loans acquired with deteriorated credit quality	0	0
Ending balance	194	268	256	0
Gross loan balances
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	70,624	55,427
Loans acquired with deteriorated credit quality	0	0
Ending balance	70,624	55,427
Consumer [Member] | Residential Mortgage [Member]
Allowance for loan losses for loans
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	185	120
Loans acquired with deteriorated credit quality	0	0
Ending balance	185	120	52	50
Gross loan balances
Individually evaluated for impairment	0	15
Collectively evaluated for impairment	8,322	6,951
Loans acquired with deteriorated credit quality	186	190
Ending balance	8,508	7,156
Consumer [Member] | Home Equity Lines of Credit [Member]
Allowance for loan losses for loans
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	11	20
Loans acquired with deteriorated credit quality	0	0
Ending balance	11	20	41	457
Gross loan balances
Individually evaluated for impairment	273	177
Collectively evaluated for impairment	8,380	6,619
Loans acquired with deteriorated credit quality	452	454
Ending balance	9,105	7,250
Consumer [Member] | Other Credit Derivatives [Member]
Allowance for loan losses for loans
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	27	43
Loans acquired with deteriorated credit quality	0	0
Ending balance	27	43	4	11
Gross loan balances
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	534	508
Loans acquired with deteriorated credit quality	0	0
Ending balance	$ 534	$ 508

XML

Earnings Per Share (Details Textual)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	578,125	578,125
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	136,000

XML

Securities (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Amortized Cost	$ 45,965	$ 24,616
Gross Unrealized Gains	69	66
Gross Unrealized Losses	(199)	(115)
Estimated Fair Value	45,835	24,567
U.S. Government Agencies [Member]
Amortized Cost	3,502	7,038
Gross Unrealized Gains	0	56
Gross Unrealized Losses	(28)	(53)
Estimated Fair Value	3,474	7,041
Agency guaranteed mortgage-backed securities [Member]
Amortized Cost	42,463	17,578
Gross Unrealized Gains	69	10
Gross Unrealized Losses	(171)	(62)
Estimated Fair Value	$ 42,361	$ 17,526

XML

Business Combination

6 Months Ended

Jun. 30, 2014

Business Combination, Description [Abstract]

Business Combination Disclosure [Text Block]

Note 2. Business Combination

On December 10, 2010, the Company purchased 1,355,263 newly issued shares of the common stock of the Bank of Virginia (“BVA”), which gave it a 59.8% ownership interest. In accordance with ASC 805-10, this transaction is considered a business combination. Under the acquisition method of accounting, the assets and liabilities of the Bank were marked to fair value and goodwill was recorded for the excess of consideration paid over net fair value received. Based on the consideration paid and the fair value of the assets received and the liabilities assumed, goodwill of $5.9 million was recorded. Goodwill was determined to be impaired in its entirety during the fourth quarter of 2011. In addition to goodwill, other assets and liabilities of the Bank of Virginia were marked to their respective fair value as of December 10, 2010.

These estimated fair values differed substantially in some cases from the carrying amounts of the assets and liabilities reflected in the financial statements of BVA which, in most cases were valued at historical cost. Subsequent to that date, the fair value adjustments were amortized over the expected life of the related asset or liability or otherwise adjusted as required by GAAP.

Interest income is impacted by the accretion of the fair value discount on the loan portfolio as well as the accretion of the accretable discount on loans acquired with deteriorated credit quality. Interest income is also impacted by the change in accretion on the investment securities that is the result of the reset of the amortized book value amount to the fair value as of the day of the investment. Interest expense is impacted by the amortization of the premiums on time deposits and the FHLB advances. Net interest income is impacted by the combination of all of these items.

In previous periods, the provision for loan losses was significantly impacted by these acquisition accounting adjustments. The credit risk associated with the loan portfolio was reflected in the fair value determination as of the day of the investment by Cordia. Accordingly, on the day of the investment, there was no allowance for loan losses related to the purchased loans on the balance sheet of Cordia, while there was a significant allowance for loan losses on the balance sheet of BVA. The level of impact of these purchase accounting adjustments on the provision for loan losses and indirectly on interest income has declined considerably in recent periods.

Non-interest income is impacted by the gain or loss on the sale of investment securities. Non-interest expense is impacted by the depreciation adjustment that is the result of a fair value discount recorded on certain branch locations, rent adjustment related to certain lease commitments being above market as of the day of the investment; and amortization of the core deposit intangible.

On March 29, 2013, the minority shareholders of BVA exchanged their common shares in the Bank for common shares of Cordia. For each share of BVA exchanged, 0.664 shares of Cordia were received. In connection with the exchange, BVA became a wholly-owned subsidiary of Cordia.

In addition, the increased ownership percentage of BVA by Cordia has impacted the accounting of both entities. All of Cordia’s purchase accounting adjustments are now recorded in the BVA financial statements and the Cordia financial statements no longer reflect adjustments for non-controlling interest.

The amortization of the acquisition accounting adjustments had the following impact on the financial statements:

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2014		2013		2014		2013
Loans	$	68	$	351	$	159	$	1,059
Allowance for loan losses		-		-		-		(577)
Premises and equipment		2		2		4		4
Core deposit intangible		(9)		(9)		(18)		(18)
Time deposits		-		49		-		104
Building lease obligations		23		23		47		46
Net impact to net income	$	84	$	416	$	192	$	618

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Securities (Details 1) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Carry Value	$ 21,839	$ 14,753
Estimated Fair Value	21,959	14,597
Agency guaranteed mortgage-backed securities [Member]
Carry Value	21,839	14,753
Gross Unrealized Gains	141	0
Gross Unrealized Losses	(21)	(156)
Estimated Fair Value	$ 21,959	$ 14,597

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Loans, Allowance for Loan Losses and Credit Quality (Details 4) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
30 - 59 days	$ 3,896	$ 5,098
60 - 89 days	5,565	2,283
> 90 days	11,623	21,747
Total past due	21,084	29,128
Current	183,201	144,879
Total loans	204,285	174,007
> 90 days and still accruing	10,370	18,387
Commercial Real Estate [Member] | Acquisition, Development, and Construction [Member]
30 - 59 days	0	0
60 - 89 days	0	0
> 90 days	548	633
Total past due	548	633
Current	1,715	2,842
Total loans	2,263	3,475
> 90 days and still accruing	0	0
Commercial Real Estate [Member] | Non-Owner Occupied [Member]
30 - 59 days	0	0
60 - 89 days	0	0
> 90 days	0	0
Total past due	0	0
Current	35,070	28,606
Total loans	35,070	28,606
> 90 days and still accruing	0	0
Commercial Real Estate [Member] | Owner Occupied [Member]
30 - 59 days	0	0
60 - 89 days	0	0
> 90 days	568	2,051
Total past due	568	2,051
Current	53,008	48,449
Total loans	53,576	50,500
> 90 days and still accruing	0	0
Commercial and Industrial [Member]
30 - 59 days	93	0
60 - 89 days	0	0
> 90 days	93	632
Total past due	186	632
Current	24,419	20,453
Total loans	24,605	21,085
> 90 days and still accruing	0	0
Guaranteed Student Loans [Member]
30 - 59 days	3,803	5,044
60 - 89 days	5,565	2,268
> 90 days	10,370	18,387
Total past due	19,738	25,699
Current	50,886	29,728
Total loans	70,624	55,427
> 90 days and still accruing	10,370	18,387
Consumer [Member] | Residential Mortgage [Member]
30 - 59 days	0	54
60 - 89 days	0	15
> 90 days	44	44
Total past due	44	113
Current	8,464	7,043
Total loans	8,508	7,156
> 90 days and still accruing	0	0
Consumer [Member] | Home Equity Lines of Credit [Member]
30 - 59 days	0	0
60 - 89 days	0	0
> 90 days	0	0
Total past due	0	0
Current	9,105	7,250
Total loans	9,105	7,250
> 90 days and still accruing	0	0
Consumer [Member] | Other [Member]
30 - 59 days	0	0
60 - 89 days	0	0
> 90 days	0	0
Total past due	0	0
Current	534	508
Total loans	534	508
> 90 days and still accruing	$ 0	$ 0

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Stock-Based Compensation (Details) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Stock Options Outstanding, Beginning Balance	115,656
Stock Options Vested, Beginning Balance	28,438
Stock Options Nonvested, Beginning Balance	87,218
Stock Options, Issued	20,400
Stock Options Outstanding, Ending Balance	136,056	115,656
Stock Options Vested, Ending Balance	44,416	28,438
Stock Options Nonvested, Ending Balance	91,640	87,218
Weighted Average Exercise Price Outstanding, Beginning balance	$ 7.68
Weighted Average Exercise Price Vested, Beginning balance	$ 12.80
Weighted Average Exercise Price Nonvesed, Beginning balance	$ 6.01
Weighted Average Exercise Price, Issued	$ 4.19
Weighted Average Exercise Price Outstanding, Ending Balance	$ 7.15	$ 7.68
Weighted Average Exercise Price Vested, Ending Balance	$ 10.05	$ 12.80
Weighted Average Exercise Price Nonvested, Ending balance	$ 5.75	$ 6.01
Weighted Average Remaining Contractual Life, Outstanding	8 years 2 months 26 days	8 years 5 months 8 days
Weighted Average Remaining Contractual Life, Vested	7 years 5 months 19 days	7 years 4 months 10 days
Weighted Average Remaining Contractual Life, Nonvested	8 years 7 months 13 days	8 years 9 months 18 days
Weighted Average Grant Date Fair Value Outstanding, Beginning Balance	$ 2.54
Weighted Average Grant Date Fair Value Vested, Beginning Balance	$ 4.31
Weighted Average Grant Date Fair Value Nonvested, Beginning Balance	$ 1.96
Weighted Average Grant Date Fair Value, Issued	$ 1.52
Weighted Average Grant Date Fair Value Outstanding, Ending Balance	$ 2.39	$ 2.54
Weighted Average Grant Date Fair Value Vested, Ending Balance	$ 3.36	$ 4.31
Weighted Average Grant Date Fair Value Nonvested, Ending Balance	$ 1.91	$ 1.96
Aggregate Intrinsic Value Outstanding, Beginning balance	$ 88
Aggregate Intrinsic Value Nonvested, Beginning balance	88
Aggregate Intrinsic Value Outstanding, Ending balance	882	88
Aggregate Intrinsic Value Vested, Ending balance	158
Aggregate Intrinsic Value Nonvested, Ending balance	$ 724	$ 88

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Assets
Cash and due from banks	$ 5,332	$ 5,290
Federal funds sold and interest-bearing deposits with banks	9,843	8,694
Total cash and cash equivalents	15,175	13,984
Securities available for sale, at fair market value	45,835	24,567
Securities held to maturity, at cost (fair value $21,959 and $14,597 at June 30, 2014 and December 31, 2013, respectively)	21,839	14,753
Restricted securities	1,525	1,074
Loans net of allowance for loan losses of $1,407 and $1,489, at June 30, 2014 and December 31, 2013, respectively	202,878	172,518
Premises and equipment, net	4,510	4,464
Accrued interest receivable	1,830	1,655
Other real estate owned, net of valuation allowance	1,543	1,545
Other assets	390	588
Total assets	295,525	235,148
Deposits
Non-interest bearing	24,883	22,845
Savings and interest-bearing demand	76,044	60,685
Time, $100,000 and over	93,565	76,231
Other time	50,701	51,053
Total deposits	245,193	210,814
Accrued expenses and other liabilities	3,419	1,047
FHLB borrowings	20,000	10,000
Total liabilities	268,612	221,861
Stockholders' equity
Preferred stock, 2,000 shares authorized, $0.01 par value, none issued and outstanding	0	0
Common stock	50	28
Additional paid-in capital	32,848	18,648
Retained deficit	(5,559)	(5,005)
Accumulated other comprehensive loss	(440)	(384)
Total stockholders' equity	26,913	13,287
Total liabilities and stockholders' equity	295,525	235,148
Non-Voting [Member]
Stockholders' equity
Common stock	14	0
Undesignated Common Stock [Member]
Stockholders' equity
Common stock	$ 0	$ 0

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Loans, Allowance for Loan Losses and Credit Quality (Details 9) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014 Loan	Dec. 31, 2013 Loan
Number of Loans	2	5
Rate Modification	$ 0
Term Extension orOther Modification	1,107
Pre-Modification Recorded Investment	1,107
Post-Modification Recorded Investment	920
Commercial Real Estate [Member] | Owner Occupied [Member]
Number of Loans	1
Rate Modification	0
Term Extension orOther Modification	595
Pre-Modification Recorded Investment	595
Post-Modification Recorded Investment	425
Commercial and Industrial [Member]
Number of Loans	1
Rate Modification	0
Term Extension orOther Modification	512
Pre-Modification Recorded Investment	512
Post-Modification Recorded Investment	$ 495

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:
Net income (loss)	$ (554)	$ 482
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Net amortization of premium on investment securities	109	73
Net amortization of acquisition accounting adjustments	(192)	(618)
Depreciation	140	140
Provision for loan losses	229	134
OREO impairment	2	0
Stock compensation	32	30
Net change in loans held for sale	0	28,949
Changes in assets and liabilities:
Increase in accrued interest receivable	(175)	(713)
Increase (decrease) in other assets	223	(49)
Decrease (increase) in accrued expenses and other liabilities	2,419	(131)
Net cash provided by operating activities	2,233	28,297
Cash flows from investing activities:
Purchase of securities available for sale	(30,310)	(6,128)
Purchase of securities held to maturity	(7,686)	0
(Issuance) redemptions of restricted securities, net	(451)	22
Proceeds from sales, maturities, and paydowns of securities available for sale	8,855	2,181
Proceeds from payments/maturities of securities held to maturity	597	0
Net increase in loans	(30,430)	(55,609)
Purchase of premises and equipment	(182)	(31)
Net cash used in investing activities	(59,607)	(59,565)
Cash flows from financing activities:
Proceeds from sale of stock, net	14,204	(207)
Net increase in demand savings, interest-bearing checking and money market deposits	17,379	11,940
Net increase in time deposits	16,982	39,076
Proceeds from FHLB advances	10,000	0
Net cash provided by investing activities	58,565	50,809
Net increase in cash and cash equivalents	1,191	19,541
Cash and cash equivalents, beginning of period	13,984	11,981
Cash and cash equivalents, end of period	15,175	31,522
Supplemental disclosure of cash flow information
Cash payments for interest	957	1,013
Supplemental disclosure of noninvesting activities
Fair value adjustments for securities	$ (81)	$ (280)

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Stock-Based Compensation (Details Textual)	6 Months Ended
	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	20,400
Prior To Merger [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	20,000
Outside Plan In September 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	10,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	87,658
Restricted Stock [Member] | Outside Plan In September 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	12,500
2005 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	26,560
2011 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	906,240
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	800,000
Founding Investors Of Cordia [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	578,125

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Securities (Details Textual) (USD $)	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Pledged Financial Instruments, Not Separately Reported, Mortgage-Related Securities Available-for-sale or Held-for-investment	$ 3,300,000	$ 2,100,000
Marketable Securities, Current, Total	67,700,000	39,300,000
Available-for-sale Securities	45,835,000	24,567,000
Securities held to maturity, at cost	21,839,000	14,753,000
Available-for-sale Securities, Gross Realized Losses	64,000
Available-for-sale Securities, Debt Securities	8,900,000
Federal Home Loan Bank Advances	6,400,000
Main Correspondent Bank [Member]
Pledged Financial Instruments, Not Separately Reported, Mortgage-Related Securities Available-for-sale or Held-for-investment	$ 2,500,000	$ 2,900,000

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Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets [Table Text Block]

A summary of the three and six months ending June 30, 2014 activity in this account is as follows:

(dollars in thousands)
Balance at March 31, 2014	$	130
Amortization		(9)
Balance at June 30, 2014	$	121

(dollars in thousands)
Balance at December 31, 2013	$	139
Amortization		(18)
Balance at June 30, 2014	$	121

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Loans, Allowance for Loan Losses and Credit Quality (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2012
Total loans	$ 204,285	$ 174,007
Allowance for loan losses	(1,407)	(1,489)	(1,562)	(2,110)
Total loans, net of allowance for loan losses	202,878	172,518
Commercial real estate [Member] | Acquisition, Development, and Construction [Member]
Total loans	2,263	3,475
Allowance for loan losses	(196)	(300)	(123)	(229)
Commercial real estate [Member] | Non-Owner Occupied [Member]
Total loans	35,070	28,606
Allowance for loan losses	(121)	(39)	(288)	(231)
Commercial real estate [Member] | Owner Occupied [Member]
Total loans	53,576	50,500
Allowance for loan losses	(164)	(322)	(544)	(350)
Commercial and Industrial [Member]
Total loans	24,605	21,085
Allowance for loan losses	(509)	(377)	(254)	(782)
Guaranteed Student Loans [Member]
Total loans	70,624	55,427
Allowance for loan losses	(194)	(268)	(256)	0
Consumer [Member] | Residential Mortgage [Member]
Total loans	8,508	7,156
Allowance for loan losses	(185)	(120)	(52)	(50)
Consumer [Member] | Home Equity Lines of Credit [Member]
Total loans	9,105	7,250
Allowance for loan losses	(11)	(20)	(41)	(457)
Consumer [Member] | Other [Member]
Total loans	534	508
Allowance for loan losses	$ (27)	$ (43)	$ (4)	$ (11)

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2014

Share-Based Compensation [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

A summary of the Company’s option activity as of June 30, 2014 and changes during the period then ended are presented in the following table:

					Wgt. Avg.
		Wgt. Avg.			Remaining	Wgt. Avg.		Aggregate
		Exercise			Contractual	Grant Date		Intrinsic
As of 1/1/2014	Stock Options	Price			Life	Fair Value		Value
Outstanding	115,656	$	7.68	$	8.44	$	2.54	$	88
Vested	28,438	$	12.80	$	7.36	$	4.31		-
Nonvested	87,218	$	6.01	$	8.80	$	1.96	$	88
Period Activity
Issued	20,400	$	4.19		-	$	1.52		-
As of 6/30/2014
Outstanding	136,056	$	7.15		8.24	$	2.39	$	882
Vested	44,416	$	10.05		7.47	$	3.36	$	158
Nonvested	91,640	$	5.75		8.62	$	1.91	$	724

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

							Wgt. Avg.
Outstanding as of June 30, 2014					Wgt. Avg.		Remaining
				Stock Options	Exercise		Contractual
Range of Exercise Prices				Outstanding	Price		Life
$	3.83	$	7.00	109,232	$	5.17	8.64
$	7.01	$	12.00	24,168	$	10.26	7.24
$	12.01	$	60.24	2,656	$	60.24	1.13
				136,056	$	7.15	8.24

Exercisable:					Wgt. Avg.
				Stock Options	Exercise
Range of Exercise Prices				Exercisable	Price
$	3.83	$	7.00	29,876	$	5.49
$	7.01	$	12.00	11,885	$	10.32
$	12.01	$	60.24	2,656	$	60.24
				44,416	$	10.05

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

Assumptions:
	Six Months Ended June 30, 2014		Year Ended December 31, 2013
Expected Volatility	30.0% - 30.0	%	30.0% - 30.0	%
Weighted-Average Volatility	30.00	%	30.00	%
Expected Dividends	-		-
Expected Term (In years)	7.00		7.00
Risk-Free Rate	2.17	%	1.42	%

Total intrinsic value of options exercised:	$	-
Total fair value of shares vested:		26,716
Weighted-average period over which nonvested awards are expected to be recognized:		1.38 years

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

A summary of the Company’s restricted stock activity as of June 30, 2014 and changes during the period then ended are presented in the following table:

		Wgt. Avg.
		Grant Date
As of 1/1/2014	Restricted Stock	Fair Value
Nonvested	11,700	$	4.41
Period Activity
Issued	87,658	$	4.20
Vested	11,718	$	4.23
Forfeited	-		-
As of 6/30/2014
Nonvested	87,640	$	4.22

Total fair value of shares vested:	$	49,543
Weighted-average period over which nonvested awards are expected to be recognized:		1.36 year(s)
Unamortized compensation expense	$	346,682

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Organization and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Summary of Significant Accounting Policies

Note 1. Organization and Summary of Significant Accounting Policies

Organization

Cordia Bancorp Inc. (“Company” or “Cordia”) was incorporated in 2009 by a team of former bank CEOs, directors and advisors seeking to invest in undervalued community banks in the Mid-Atlantic and Southeast. The Company was approved as a bank holding company by the Board of Governors of the Federal Reserve in November 2010 and granted the authority to purchase a majority interest in Bank of Virginia (“Bank” or “BVA”) at that time.

On December 10, 2010, Cordia purchased $10.3 million of BVA’s common stock, resulting in the ownership of 59.8% of the outstanding shares. On August 28, 2012, Cordia purchased an additional $3.0 million of BVA common stock.

On March 29, 2013, the Company completed a share exchange with the Bank resulting in the Bank becoming a wholly owned subsidiary of the Company. Under the terms of the Agreement and Plan of Share Exchange between the Company and the Bank, each outstanding share of the Bank’s common stock owned by persons other than the Company were exchanged for 0.664 of a share of the Company’s common stock. Shares of the Company’s stock are listed on the Nasdaq Stock Market under the symbol “BVA”. The Company has owned 100.0% of the Bank’s shares since the completion of the exchange.

Cordia’s principal business is the ownership of BVA. Because Cordia does not have any business activities separate from the operations of BVA, the information in this document regarding the business of Cordia reflects the activities of Cordia and BVA on a consolidated basis. References to “we” and “our” in this document refer to Cordia and BVA, collectively.

The Bank was organized under the laws of the Commonwealth of Virginia to engage in a general banking business serving the communities in and around the Richmond, Virginia metropolitan area. The Bank commenced regular operations on January 12, 2004, and is a member of the Federal Reserve System, Federal Deposit Insurance Corporation and the Federal Home Loan Bank of Atlanta. The Bank is subject to the regulations of the Federal Reserve System and the State Corporation Commission of Virginia. Consequently, it undergoes periodic examinations by these regulatory authorities.

Basis of Presentation

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and prevailing practices within the financial services industry for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required for complete financial statements and prevailing practices within the banking industry. Operating results for the three months and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for any future periods or for the year ending December 31, 2014. In the opinion of management, all adjustments (comprising only normal, recurring accruals) necessary for a fair presentation of the results of the interim periods have been included. Certain reclassifications have been made to prior period amounts, as necessary, to conform to the current period presentation. The Company has evaluated subsequent events through the date of the issuance of its financial statements.

These statements should be read in conjunction with the financial statements and accompanying notes included in the Company’s 2013 Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on March 26, 2014.

Principles of Consolidation

The accompanying condensed consolidated financial statements include all accounts of the Company and the Bank. All material intercompany balances and transactions have been eliminated in consolidation.

Summary of Significant Accounting Policies

We provide a summary of our significant accounting policies in our 2013 Form 10-K under “Note 1 – Organization and Summary of Significant Accounting Policies”. There have been no significant changes to these policies during 2014.

Recent Accounting Pronouncements

In January 2014, the FASB issued ASU 2014-01, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force).” The amendments in this ASU permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this ASU should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-01 to have a material impact on its consolidated financial statements.

In January 2014, the FASB issued ASU 2014-04, “Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” The amendments in this ASU clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The Company does not expect the adoption of ASU 2014-04 to have a material impact on its consolidated financial statements.

In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” The amendments in this ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results and include disposals of a major geographic area, a major line of business, or a major equity method investment. The new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. Additionally, the new guidance requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The amendments in the ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-08 to have a material impact on its consolidated financial statements.

In June 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606”. This ASU applies to any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The guidance supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition”, most industry-specific guidance, and some cost guidance included in Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts”. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To be in alignment with the core principle, an entity must apply a five step process including: identification of the contract(s) with a customer, identification of performance obligations in the contract(s), determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue when (or as) the entity satisfies a performance obligation. Additionally, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer have also been amended to be consistent with the guidance on recognition and measurement. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company does not expect the adoption of ASU 2014-09 to have a material impact on its consolidated financial statements.

In June 2014, the FASB issued ASU No. 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures”. This ASU aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. The new guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. The amendments in the ASU also require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. Additional disclosures will be required for the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The amendments in this ASU are effective for the first interim or annual period beginning after December 15, 2014; however, the disclosure for transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. Early adoption is not permitted. The Company does not expect the adoption of ASU 2014-11 to have a material impact on its consolidated financial statements.

In June 2014, the FASB issued ASU No. 2014-12, “Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. The new guidance applies to reporting entities that grant employees share-based payments in which the terms of the award allow a performance target to be achieved after the requisite service period. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Existing guidance in “Compensation – Stock Compensation (Topic 718)”, should be applied to account for these types of awards. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted and reporting entities may choose to apply the amendments in the ASU either on a prospective or retrospective basis. The Company does not expect the adoption of ASU 2014-12 to have a material impact on its consolidated financial statements.

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Securities held to maturity, at cost	$ 21,959	$ 14,597
Allowance for loan losses	$ 1,407	$ 1,489
Preferred Stock, Shares Authorized	2,000	2,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	120,000,000	120,000,000
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares, Outstanding	5,105,344	2,788,302
Undesignated Common Stock [Member]
Common Stock, Shares Authorized	80,000,000	80,000,000
Common Stock, Shares, Issued	0	0
Non-Voting [Member]
Common Stock, Shares Authorized	5,000,000	5,000,000
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares, Outstanding	1,400,437	0

XML

Organization and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and prevailing practices within the financial services industry for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required for complete financial statements and prevailing practices within the banking industry. Operating results for the three months and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for any future periods or for the year ending December 31, 2014. In the opinion of management, all adjustments (comprising only normal, recurring accruals) necessary for a fair presentation of the results of the interim periods have been included. Certain reclassifications have been made to prior period amounts, as necessary, to conform to the current period presentation. The Company has evaluated subsequent events through the date of the issuance of its financial statements.

These statements should be read in conjunction with the financial statements and accompanying notes included in the Company’s 2013 Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on March 26, 2014.

Principles of Consolidation

Principles of Consolidation

The accompanying condensed consolidated financial statements include all accounts of the Company and the Bank. All material intercompany balances and transactions have been eliminated in consolidation.

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

We provide a summary of our significant accounting policies in our 2013 Form 10-K under “Note 1 – Organization and Summary of Significant Accounting Policies”. There have been no significant changes to these policies during 2014.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In January 2014, the FASB issued ASU 2014-01, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force).” The amendments in this ASU permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this ASU should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-01 to have a material impact on its consolidated financial statements.

In January 2014, the FASB issued ASU 2014-04, “Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” The amendments in this ASU clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The Company does not expect the adoption of ASU 2014-04 to have a material impact on its consolidated financial statements.

In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” The amendments in this ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results and include disposals of a major geographic area, a major line of business, or a major equity method investment. The new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. Additionally, the new guidance requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The amendments in the ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-08 to have a material impact on its consolidated financial statements.

In June 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606”. This ASU applies to any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The guidance supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition”, most industry-specific guidance, and some cost guidance included in Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts”. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To be in alignment with the core principle, an entity must apply a five step process including: identification of the contract(s) with a customer, identification of performance obligations in the contract(s), determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue when (or as) the entity satisfies a performance obligation. Additionally, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer have also been amended to be consistent with the guidance on recognition and measurement. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company does not expect the adoption of ASU 2014-09 to have a material impact on its consolidated financial statements.

In June 2014, the FASB issued ASU No. 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures”. This ASU aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. The new guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. The amendments in the ASU also require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. Additional disclosures will be required for the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The amendments in this ASU are effective for the first interim or annual period beginning after December 15, 2014; however, the disclosure for transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. Early adoption is not permitted. The Company does not expect the adoption of ASU 2014-11 to have a material impact on its consolidated financial statements.

In June 2014, the FASB issued ASU No. 2014-12, “Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. The new guidance applies to reporting entities that grant employees share-based payments in which the terms of the award allow a performance target to be achieved after the requisite service period. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Existing guidance in “Compensation – Stock Compensation (Topic 718)”, should be applied to account for these types of awards. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted and reporting entities may choose to apply the amendments in the ASU either on a prospective or retrospective basis. The Company does not expect the adoption of ASU 2014-12 to have a material impact on its consolidated financial statements.

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Document And Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 05, 2014
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Entity Registrant Name	Cordia Bancorp Inc
Entity Central Index Key	0001466292
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	BVA
Entity Common Stock, Shares Outstanding		6,505,781

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Business Combination (Tables)

6 Months Ended

Jun. 30, 2014

Business Combination, Description [Abstract]

Schedule of Purchase Price Allocation [Table Text Block]

The amortization of the acquisition accounting adjustments had the following impact on the financial statements:

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2014		2013		2014		2013
Loans	$	68	$	351	$	159	$	1,059
Allowance for loan losses		-		-		-		(577)
Premises and equipment		2		2		4		4
Core deposit intangible		(9)		(9)		(18)		(18)
Time deposits		-		49		-		104
Building lease obligations		23		23		47		46
Net impact to net income	$	84	$	416	$	192	$	618

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Condensed Consolidated Statements of Operations (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Interest income
Interest and fees on loans	$ 2,252	$ 2,516	$ 4,401	$ 5,095
Investment securities	311	72	518	142
Federal funds sold and deposits with banks	9	29	15	44
Total interest income	2,572	2,617	4,934	5,281
Interest expense
Interest on deposits	441	426	867	818
Interest on FHLB borrowings	56	41	97	81
Total interest expense	497	467	964	899
Net interest income	2,075	2,150	3,970	4,382
Provision for loan losses	209	7	229	134
Net interest income after provision for loan losses	1,866	2,143	3,741	4,248
Non-interest income
Service charges on deposit accounts	19	29	45	62
Net gain on sale of available for sale securities	0	0	64	0
Other fee income	43	36	76	71
Total non-interest income	62	65	185	133
Non-interest expense
Salaries and employee benefits	1,150	974	2,556	2,159
Professional services	125	211	231	273
Occupancy	120	145	271	290
Data processing and communications	151	144	293	269
FDIC assessment and bank fees	93	114	187	234
Bank franchise taxes	27	20	56	46
Student loan servicing fees and other loan expenses	210	102	336	117
Other real estate expenses	17	12	22	28
Supplies and equipment	65	64	140	133
Insurance	44	42	85	84
Director's fees	24	38	40	72
Marketing and business development	9	15	15	37
Other operating expenses	163	66	248	157
Total non-interest expense	2,198	1,947	4,480	3,899
Net income (loss)	$ (270)	$ 261	$ (554)	$ 482
Basic income (loss) per share	$ (0.09)	$ 0.09	$ (0.19)	$ 0.20
Diluted income (loss) per share	$ (0.09)	$ 0.09	$ (0.19)	$ 0.20
Weighted average shares outstanding, basic	3,017,772	2,764,090	2,898,047	2,431,019
Weighted average shares outstanding, diluted	3,017,772	2,775,802	2,898,047	2,444,923

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Intangible Assets

6 Months Ended

Jun. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Note 6. Intangible Assets

In 2010, the Company acquired a majority interest in the Bank of Virginia. The Company recorded a core deposit intangible related to this acquisition of $249 thousand. This asset represents the estimated fair value of the core deposits and was determined based on the present value of future cash flows related to those deposits considering the industry standard “financial instrument” type present value methodology. The core deposit intangible is amortized over the estimated life of the deposits using the straight-line method. A summary of the three and six months ending June 30, 2014 activity in this account is as follows:

(dollars in thousands)
Balance at March 31, 2014	$	130
Amortization		(9)
Balance at June 30, 2014	$	121

(dollars in thousands)
Balance at December 31, 2013	$	139
Amortization		(18)
Balance at June 30, 2014	$	121

Amortization expense is expected to be approximately $36 thousand per year through 2016 and $30 thousand in 2017.

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Loans, Allowance for Loan Losses and Credit Quality

6 Months Ended

Jun. 30, 2014

Receivables [Abstract]

Allowance for Credit Losses [Text Block]

Note 5.       Loans, Allowance for Loan Losses and Credit Quality

Loans by Loan Class

The Bank categorizes its loan receivables into four main segments which are commercial real estate loans, commercial and industrial loans, guaranteed student loans, and consumer loans. Each category of loan has a different level of credit risk. Real estate loans are generally safer than loans secured by other assets because the value of the underlying collateral is generally ascertainable and does not fluctuate as much as other assets. Owner occupied commercial real estate loans are generally the least risky type of commercial real estate loan. Non-owner occupied commercial real estate loans and construction and development loans contain more risk. Commercial loans, which can be secured by real estate or other assets, or which can be unsecured, are generally more risky than commercial real estate loans. Guaranteed student loans are guaranteed by the U.S. Department of Education for approximately 98% of the principal and interest. Consumer loans may be secured by residential real estate, automobiles or other assets or may be unsecured. Those secured by residential real estate are the least risky and those that are unsecured are the most risky type of consumer loans. Any type of loan which is unsecured is generally more risky than a secured loan. These levels of risk are general in nature, and many factors including the creditworthiness of the borrower or the particular nature of the secured asset may cause any type of loan to be more or less risky than another. In the commercial real estate category of the loan portfolio the sub-segments are acquisition-development-construction, non-owner occupied and owner occupied. In the consumer category of the loan portfolio the sub-segments are residential real estate, home equity lines of credit and other. Management has not further divided its eight sub-segments into classes. This provides Management and the Board with sufficient information to evaluate the risks within the Bank’s portfolio. 

The table below presents loans by sub-segment at June 30, 2014 and December 31, 2013.

(dollars in thousands)	June 30, 2014		December 31, 2013
Commercial Real Estate:
Acquisition, development and construction	$	2,263	$	3,475
Non-owner occupied		35,070		28,606
Owner occupied		53,576		50,500
Commercial and industrial		24,605		21,085
Guaranteed student loans		70,624		55,427
Consumer:
Residential mortgage		8,508		7,156
HELOC		9,105		7,250
Other		534		508
Total loans		204,285		174,007
Allowance for loan losses		(1,407)		(1,489)
Total loans, net of allowance for loan losses	$	202,878	$	172,518

Loans Acquired with Evidence of Deterioration in Credit Quality

Acquired in the acquisition of Bank of Virginia in 2010, and included in the table above, are loans acquired with evidence of deterioration in credit quality. These loans are accounted for under the guidance ASC 310-30. Information related to these loans is as follows:

(dollars in thousands)	June 30, 2014		December 31, 2013
Contract principal balance	$	7,667	$	8,689
Accretable discount		(52)		(62)
Nonaccretable discount		(5)		(61)
Book value of loans	$	7,610	$	8,566

A discount is applied to these loans such that the carrying amount approximates the cash flows expected to be received from the borrower or from the liquidation of collateral. Due to a high level of uncertainty regarding the timing and amount of these cash flows in December 2010, Management initially considered the entire discount to be nonaccretable. However, due to improvement in the status of some credits, the majority of the discount was subsequently transferred to accretable and is amortized as a yield adjustment over the lives of the individual loans. Cash flows received on loans with a nonaccretable discount are applied on a cost recovery method, whereby payments are applied first to the loan balance. When the loan balance is fully recovered, payments are then applied to income. Any future reductions in carrying value as a result of deteriorating credit quality require an allowance for loan losses related to these loans.

A summary of changes to the accretable and nonaccretable discounts during the six months ended June 30, 2014 and 2013 is as follows:

	Six Months Ending June 30.
	2014				2013
(dollars in thousands)	Accretable Discount		Nonaccretable Discount		Accretable Discount		Nonaccretable Discount
Beginning balance	$	62	$	61	$	476	$	165
Charge-offs related to loans covered by ASC 310-30		-		(56)		-		-
Transfer to accretable discount		-		-		104		(104)
Discount accretion		(10)		-		(326)		-
Ending balance	$	52	$	5	$	254	$	61

Credit Quality Indicators

Credit risk ratings reflect the current risk of default and/or loss for a given asset. The risk of loss is driven by factors intrinsic to the borrower and the unique structural characteristics of the loan. The credit risk rating begins with an analysis of the borrower’s credit history, ability to repay the debt as agreed, use of proceeds, and the value and stability of the value of the collateral securing the loan. The attributes ordinarily considered when reviewing a borrower are as follows:

· industry/industry segment;

· position within industry;

· earnings, liquidity and operating cash flow trends;

· asset and liability values;

· financial flexibility/debt capacity;

· management and controls; and

· quality of financial reporting.

The unique structural characteristics ordinarily considered when reviewing a loan are as follows:

· credit terms/loan documentation;

· guaranty/third party support;

· collateral; and

· loan maturity.

On a quarterly basis, the process of estimating the Allowance for Loan Loss begins with Management’s review of the risk rating assigned to individual credits. Through this process, loans adversely risk rated are evaluated for impairment based on ASC 310-40. The following is a summary of the risk rating definitions the Company uses to assign a risk grade to each loan within the portfolio:

Grade 1 - Highest Quality	Loans to persons and businesses with unquestionable financial strength and character that carry extremely low probabilities of default. Balance sheets and cash flow are extremely strong relative to the magnitude of debt. This rating would be analogous to the highest investment grade ratings.
Grade 2 - Above Average Quality	Loans to persons and business entities with unquestioned character that carry low probabilities of default. Borrowers have strong, stable earnings and financial condition.
Grade 3 - Satisfactory	Loans to persons and businesses with acceptable financial condition that carry average probabilities of default. Borrower’s exhibit adequate cash flow to service debt and have acceptable levels of leverage.
Grade 4 - Pass	Loans to persons and businesses with a lack of stability in the primary source of repayment or temporary weakness in their balance sheet or earnings. These loans carry above average probabilities of default. These borrowers generally have higher leverage and less liquidity than loans rated 3-Satisfactory.
Grade 5- Special Mention	Loans to borrowers that exhibit potential credit weakness or a downward trend that warrant additional supervision. While potentially weak, the loan is currently marginally acceptable and no loss of principal or interest is envisioned.
Grade 6 – Substandard	Borrowers with one or more well defined weaknesses that jeopardize the orderly liquidation of the debt. Normal repayment from the borrower is in jeopardy, although no loss of principal is envisioned. Possibility of loss or protracted workout exists if immediate corrective action is not taken.
Grade 7 – Doubtful	Loans with all the weaknesses inherent in a Substandard classification, with the added provision that the weaknesses make collection of debt in full highly questionable and improbable, based on currently existing facts, conditions, and values. Serious problems exist to the point where a partial loss of principal is likely.
Grade 8 – Loss	Borrower is deemed incapable of repayment of the entire principal. A charge-off is required for the portion of principal management has deemed it will not be repaid.

The following is the distribution of loans by credit quality and segment as of June 30, 2014 and December 31, 2013:

	June 30, 2014
(dollars in thousands)	Commercial Real Estate										Consumer
Credit quality class	Acq-Dev Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
1 Highest quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
2 Above average quality		-		2,018		3,132		2,015		70,624		49		961		45		78,844
3 Satisfactory		229		16,030		28,538		12,921		-		4,133		4,746		403		67,000
4 Pass		781		15,405		18,394		7,557		-		4,016		2,354		86		48,593
5 Special mention		-		126		-		81		-		124		319		-		650
6 Substandard		270		-		259		786		-		-		273		-		1,588
7 Doubtful		-		-		-		-		-		-		-		-		-
		1,280		33,579		50,323		23,360		70,624		8,322		8,653		534		196,675
Loans acquired with deteriorating credit quality		983		1,491		3,253		1,245		-		186		452		-		7,610
Total loans	$	2,263	$	35,070	$	53,576	$	24,605	$	70,624	$	8,508	$	9,105	$	534	$	204,285

	December 31, 2013
(dollars in thousands)	Commercial Real Estate										Consumer
Credit quality class	Acq-Dev Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
1 Highest quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
2 Above average quality		-		2,078		2,966		2,170		55,427		73		205		80		62,999
3 Satisfactory		325		10,563		25,264		8,290		-		3,965		3,541		350		52,298
4 Pass		1,500		12,990		14,606		8,128		-		2,710		2,243		78		42,255
5 Special mention		299		1,449		3,486		268		-		203		630		-		6,335
6 Substandard		267		-		336		759		-		15		177		-		1,554
7 Doubtful		-		-		-		-		-		-		-		-		-
		2,391		27,080		46,658		19,615		55,427		6,966		6,796		508		165,441
Loans acquired with deteriorating credit quality		1,084		1,526		3,842		1,470		-		190		454		-		8,566
Total loans	$	3,475	$	28,606	$	50,500	$	21,085	$	55,427	$	7,156	$	7,250	$	508	$	174,007

A summary of the balances of loans outstanding by days past due, including accruing and non-accruing loans by portfolio class as of June 30, 2014 and December 31, 2013 is as follows:

	June 30, 2014
	Commercial Real Estate										Consumer
(dollars in thousands)	Acq-Dev Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
30 - 59 days	$	-	$	-	$	-	$	93	$	3,803	$	-	$	-	$	-	$	3,896
60 - 89 days		-		-		-		-		5,565		-		-		-		5,565
> 90 days		548		-		568		93		10,370		44		-		-		11,623
Total past due		548		-		568		186		19,738		44		-		-		21,084
Current		1,715		35,070		53,008		24,419		50,886		8,464		9,105		534		183,201
Total loans	$	2,263	$	35,070	$	53,576	$	24,605	$	70,624	$	8,508	$	9,105	$	534	$	204,285
> 90 days still accruing	$	-	$	-	$	-	$	-	$	10,370	$	-	$	-	$	-	$	10,370

	December 31, 2013
	Commercial Real Estate										Consumer
(dollars in thousands)	Acq-Dev Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
30 - 59 days	$	-	$	-	$	-	$	-	$	5,044	$	54	$	-	$	-	$	5,098
60 - 89 days		-		-		-		-		2,268		15		-		-		2,283
> 90 days		633		-		2,051		632		18,387		44		-		-		21,747
Total past due		633		-		2,051		632		25,699		113		-		-		29,128
Current		2,842		28,606		48,449		20,453		29,728		7,043		7,250		508		144,879
Total loans	$	3,475	$	28,606	$	50,500	$	21,085	$	55,427	$	7,156	$	7,250	$	508	$	174,007
> 90 days still accruing	$	-	$	-	$	-	$	-	$	18,387	$	-	$	-	$	-	$	18,387

Non-accrual Loans

Loans are placed on nonaccrual status when Management believes the collection of the principal and interest is doubtful. A delinquent loan is generally placed in nonaccrual status when:

· principal and/or interest is past due for 90 days or more, unless the loan is well-secured or in the process of collection;

· the financial strength of the borrower or a guarantor has materially declined;

· collateral value has declined; or

· other facts would make the repayment in full of principal and interest unlikely.

Loans placed on nonaccrual status are reported to the Board at its next regular meeting. When a loan is placed on nonaccrual, all interest which has been accrued is charged back against current earnings as a reduction in interest income, which adversely affects the yield on loans in the period of reversal. No additional interest is accrued on the loan balance until the collection of both principal and interest becomes reasonably certain.

Loans placed on non-accrual status may, at the lenders discretion, be returned to accrual status after:

· payments are received for a reasonable period in accordance with the loan documents (typically for (6) months), and any doubt as to the loan's full collectability has been removed; or

· the troubled loan is restructured and, evidenced by a credit evaluation of the borrower's financial condition and the prospects for full payment are good.

When a loan is returned to accrual status after restructuring, the pre-restructuring risk rating is maintained until a satisfactory payment history is re-established. Returning non-accrual loans to an accrual status requires the prior written approval of the Chief Credit Officer. 

A summary of non-accrual loans by portfolio class is as follows:

(dollars in thousands)	June 30, 2014		December 31, 2013
Commercial Real Estate:
Acquisition, development and construction	$	548	$	633
Owner occupied		988		2,051
Commercial and industrial		668		858
Consumer:
Residential mortgage		44		59
HELOC		324		333
Total non-accrual loans	$	2,572	$	3,934
Non-accrual troubled debt restructurings included above	$	994	$	119

Impaired Loans

All loans that are rated Doubtful are assessed as impaired based on the expectation that the full collection of principal and interest is in doubt. All loans that are rated Substandard or are expected to be downgraded to Substandard, require additional analysis to determine if a specific reserve under ASC 310-40 is required. All loans that are rated Special Mention are presumed not to be impaired. However, Special Mention rated loans are typically evaluated for the following adverse characteristics that may indicate further analysis is warranted before completing an assessment of impairment:

· a loan is 60 days or more delinquent on scheduled principal or interest;

· a loan is presently in an unapproved over-advanced position;

· a loan is newly modified; or

· a loan is expected to be modified.

The following information is a summary of the Company’s policies pertaining to impaired loans:

A loan is deemed impaired when it qualifies for a risk rating of Substandard or worse. Factors impairing repayment might include: inadequate repayment capacity, severe erosion of equity, likely reliance on non-primary source of repayment, guarantors with limited resources, and obvious material deterioration in borrower’s financial condition. The possibility of loss or protracted workout exists if immediate corrective action is not taken.

Once deemed impaired, the loan is then analyzed for the extent of the impairment. Impairment is the difference between the principal balance of the loan and (i) the discounted cash flows of the borrower or (ii) the fair market value of the collateral less the costs involved with liquidation (i.e., real estate commissions, attorney costs, etc.). This difference is then reflected as a component in the allowance for loan loss as a specific reserve.

Certain loans were identified and individually evaluated for impairment at June 30, 2014. A number of these impaired loans were not charged with a valuation allowance due to Management’s judgment that the cash flows from the underlying collateral or equity available from guarantors was sufficient to recover the Company’s entire investment, while one loan experienced collateral deterioration and supplemental specific reserve was added. The results of those analyses are presented in the following tables.

The following information is a summary of related impaired loans, excluding loans acquired with deteriorating credit quality, presented by portfolio class as of June 30, 2014:

(dollars in thousands)	Recorded Investment		Unpaid Principal		Related Allowance		Average Recorded Investment		Interest Recorded
With no related allowance recorded:
Commercial Real Estate:
Acquisition, development and construction	$	270	$	270	$	-	$	269	$	8
Non-owner occupied		1,342		1,342		-		1,648		44
Owner occupied		259		259		-		259		-
Commercial and industrial		734		734		-		667		3
Consumer:
Residential mortgage		-		-		-		-		-
HELOC		273		273		-		274		6
Other		-		-		-				-
Total	$	2,878	$	2,878	$	-	$	3,117	$	61
With an allowance recorded:
Commercial Real Estate:
Acquisition, development and construction	$	-	$	-	$	-	$	-	$	-
Non-owner occupied		-		-		-		-		-
Owner occupied		-		-		-		-		-
Commercial and industrial		52		52		35		52		-
Consumer:
Residential mortgage		-		-		-		-		-
HELOC		-		-		-		-		-
Other		-		-		-		-		-
Total	$	52	$	52	$	35	$	52	$	-

The following information is a summary of related impaired loans, excluding loans acquired with deteriorating credit quality, presented by portfolio class as of December 31, 2013:

(dollars in thousands)	Recorded Investment		Unpaid Principal		Related Allowance		Average Recorded Investment		Interest Recorded
With no related allowance recorded:
Commercial Real Estate:
Acquisition, development and construction	$	267	$	267	$	-	$	267	$	19
Non-owner occupied		1,352		1,352		-		1,652		83
Owner occupied		259		259		-		259		-
Commercial and industrial		759		759		-		759		44
Consumer:
Residential mortgage		15		15		-		15		5
HELOC		177		177		-		177		8
Other		-		-		-		-		-
Total	$	2,829	$	2,829	$	-	$	3,129	$	159
With an allowance recorded:
Commercial Real Estate:
Acquisition, development and construction	$	-	$	-	$	-	$	-	$	-
Non-owner occupied		-		-		-		-		-
Owner occupied		-		-		-		-		-
Commercial and industrial		-		-		-		-		-
Consumer:
Residential mortgage		-		-		-		-		-
HELOC		-		-		-		-		-
Other		-		-		-		-		-
Total	$	-	$	-	$	-	$	-	$	-

Loans with deteriorated credit quality acquired as part of the Bank of Virginia acquisition are accounted for under the requirements of ASC 310-30. These loans are not considered impaired and not included in the table above.

Activity in the allowance for loan losses for the six months ended June 30, 2014 and June 30, 2013 is summarized below:

	Commercial Real Estate										Consumer
(dollars in thousands)	Acquisition, Development, Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
Allowance for loan losses
Beginning balance, December 31, 2013	$	300	$	39	$	322	$	377	$	268	$	120	$	20	$	43	$	1,489
Charge-offs		(6)		(114)		-		(17)		(265)		-		-		-		(402)
Recoveries		3		47		-		18		-		2		2		19		91
Net Charge-offs (recoveries)		(3)		(67)		-		1		(265)		2		2		19		(311)
Provision (recovery)		(101)		149		(158)		131		191		63		(11)		(35)		229
Ending balance, June 30, 2014	$	196	$	121	$	164	$	509	$	194	$	185	$	11	$	27	$	1,407

	Commercial Real Estate										Consumer
(dollars in thousands)	Acquisition, Development, Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
Allowance for loan losses
Beginning balance, December 31, 2012	$	229	$	231	$	350	$	782	$	-	$	50	$	457	$	11	$	2,110
Charge-offs		-		-		(289)		-		(39)		-		(365)		(8)		(701)
Recoveries		1		-		-		18		-		-		-		-		19
Net Charge-offs (recoveries)		1		-		(289)		18		(39)		-		(365)		(8)		(682)
Provision (recovery)		(107)		57		483		(546)		295		2		(51)		1		134
Ending balance, June 30, 2013	$	123	$	288	$	544	$	254	$	256	$	52	$	41	$	4	$	1,562

A summary of the allowance for loan losses by portfolio segment and impairment evaluation methodology as of June 30, 2014 and December 31, 2013 is as follows:

	Commercial Real Estate										Consumer
(dollars in thousands)	Acquisition, Development, Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
Allowance for loan losses
Individually evaluated for impairment	$	-	$	-	$	-	$	35	$	-	$	-	$	-	$	-	$	35
Collectively evaluated for impairment		156		121		164		474		194		185		11		27		1,332
Loans acquired with deteriorated credit quality		40		-		-		-		-		-		-		-		40
Ending balance, June 30, 2014	$	196	$	121	$	164	$	509	$	194	$	185	$	11	$	27	$	1,407
Gross loan balances
Individually evaluated for impairment	$	270	$	1,342	$	259	$	786	$	-	$	-	$	273	$	-	$	2,930
Collectively evaluated for impairment		1,010		32,237		50,064		22,574		70,624		8,322		8,380		534		193,745
Loans acquired with deteriorated credit quality		983		1,491		3,253		1,245		-		186		452		-		7,610
Ending balance, June 30, 2014	$	2,263	$	35,070	$	53,576	$	24,605	$	70,624	$	8,508	$	9,105	$	534	$	204,285

	Commercial Real Estate										Consumer
(dollars in thousands)	Acquisition, Development, Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
Allowance for loan losses for loans
Individually evaluated for impairment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Collectively evaluated for impairment		260		39		128		377		268		120		20		43		1,255
Loans acquired with deteriorated credit quality		40		-		194		-		-		-		-		-		234
Ending balance, December 31, 2013	$	300	$	39	$	322	$	377	$	268	$	120	$	20	$	43	$	1,489
Gross loan balances
Individually evaluated for impairment	$	267	$	1,352	$	259	$	759	$	-	$	15	$	177	$	-	$	2,829
Collectively evaluated for impairment		2,124		25,728		46,399		18,856		55,427		6,951		6,619		508		162,612
Loans acquired with deteriorated credit quality		1,084		1,526		3,842		1,470		-		190		454		-		8,566
Ending balance, December 31, 2013	$	3,475	$	28,606	$	50,500	$	21,085	$	55,427	$	7,156	$	7,250	$	508	$	174,007

Troubled Debt Restructurings

A modification is classified as a troubled debt restructuring (“TDR”) if both of the following exist: (1) the borrower is experiencing financial difficulty and (2) the Company has granted a concession to the borrower.  The Company determines that a borrower may be experiencing financial difficulty if the borrower is currently delinquent on any of its debt, or if the Company is concerned that the borrower may not be able to perform in accordance with the current terms of the loan agreement in the foreseeable future.  Many aspects of the borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty, particularly as it relates to commercial borrowers due to the complex nature of the loan structure, business/industry risk and borrower/guarantor structures.  Concessions may include the reduction of an interest rate at a rate lower than current market rate for a new loan with similar risk, extension of the maturity date, reduction of accrued interest, or principal forgiveness.  When evaluating whether a concession has been granted, the Company also considers whether the borrower has provided additional collateral or guarantors and whether such additions adequately compensate the Company for the restructured terms, or if the revised terms are consistent with those currently being offered to new loan customers.  The assessments of whether a borrower is experiencing (or is likely to experience) financial difficulty and whether a concession has been granted is subjective in nature and management’s judgment is required when determining whether a modification is a TDR.

Although each occurrence is unique to the borrower and is evaluated separately, for all portfolio segments, TDRs are typically modified through reduction in interest rates, reductions in payments, changing the payment terms from principal and interest to interest only, and/or extensions in term maturity.

During the three and six months ended June 30, 2014, two loans were modified in troubled debt restructurings and one previous troubled debt restructured loan was paid off . During the three and six months ended June 30, 2013, no loans were modified in troubled debt restructurings. At June 30, 2014 and December 31, 2013, six and five loans were classified as trouble debt restructuring, respectively. The principal balance outstanding relating to these was $2.8 million and $2.0 million at June 30, 2014 and December 31, 2013, respectively. Of these amounts, $1.8 million and $1.9 million were accruing, respectively. During the three and six months ended June 30, 2014 and 2013, no defaults occurred on loans modified as TDR’s in the preceding twelve months.

The number and outstanding recorded investment of loans entered into under the terms of a TDR, including modifications of acquired impaired loans, by type of concession granted, are set forth in the following tables:

	Three and Six Months Ended June 30, 2014
(dollars in thousands)	Number of loans	Rate modification	Term extension		Pre-modification recorded investment		Post-modification recorded investment
Commercial and industrial	1	-	$	512	$	512	$	495
Commercial real estate - owner occupied	1	-		595		595		425
Total	2	-	$	1,107	$	1,107	$	920

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]

The carrying value and fair values of financial assets and liabilities are as follows:

			Fair Value Measurements at June 30, 2014
	Carrying
(dollars in thousands)	amount		Level 1		Level 2		Level 3		Fair Value
Assets:
Cash and cash equivalents	$	15,175	$	15,175	$	-	$	-	$	15,175
Securities available for sale		45,835		-		45,835		-		45,835
Securities held to maturity		21,839		-		21,959		-		21,959
Restricted securities		1,525		-		1,525		-		1,525
Net Loans held for investment		202,878		-		-		203,842		203,842
Interest receivable		1,830		-		1,830		-		1,830
Liabilities:
Demand deposits		24,883		-		24,883		-		24,883
Savings and interest-bearing demand deposits		76,044		-		76,044		-		76,044
Time deposits		144,266		-		144,918		-		144,918
FHLB Borrowings		20,000		-		19,747		-		19,747
Interest payable		150		-		150		-		150

			Fair Value Measurements at December 31, 2013
	Carrying
(dollars in thousands)	amount		Level 1		Level 2		Level 3		Fair Value
Assets:
Cash and cash equivalents	$	13,984	$	13,984	$	-	$	-	$	13,984
Securities available for sale		24,567		-		24,567		-		24,567
Securities held to maturity		14,753		-		14,597		-		14,597
Restricted securities		1,074		-		1,074		-		1,074
Loans held for investment		172,518		-		-		173,444		173,444
Interest receivable		1,655		-		1,655		-		1,655
Liabilities:
Demand deposits		22,845		-		22,845		-		22,845
Savings and interest-bearing demand deposits		60,685		-		60,685		-		60,685
Time deposits		127,284		-		127,966		-		127,966
FHLB Borrowings		10,000		-		9,656		-		9,656
Interest payable		143		-		143		-		143

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

The following table presents the balances of financial assets measured at fair value on a recurring basis:

			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(dollars in thousands)	Balance		(Level 1)		(Level 2)		(Level 3)
June 30, 2014
U. S. Government Agencies	$	3,474	$	-	$	3,474	$	-
Agency Guaranteed Mortgage-backed securities		42,361		-		42,361		-
December 31, 2013
U. S. Government Agencies	$	7,041	$	-	$	7,041	$	-
Agency Guaranteed Mortgage-backed securities		17,526		-		17,526		-

Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]

The following tables summarize the Company’s assets that were measured at fair value on a nonrecurring basis:

			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(dollars in thousands)	Balance		(Level 1)		(Level 2)		(Level 3)
June 30, 2014
Impaired loan	$	17	$	-	$	-	$	17
OREO	$	1,543	$	-	$	-	$	1,543
December 31, 2013
OREO	$	1,545	$	-	$	-	$	1,545

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

The following table presents qualitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at June 30, 2014 and December 31, 2013:

	June 30, 2014
(dollars in thousands)	Quantitative Information About Level 3 Fair Value Measurements
Description	Fair Value		Valuation Technique	Unobservable input	Range (Weighted Average)
Impaired loan - commercial and industrial	$	17	Contract review	Management discount based on underlying collateral characteristics and sales contract	(67)	%
Other real estate owned	$	1,543	Discounted appraised value	Discount for lack of marketability	6-29% (13)	%

	December 31, 2013
(dollars in thousands)	Quantitative Information About Level 3 Fair Value Measurements
Description	Fair Value		Valuation Technique	Unobservable input	Range (Weighted Average)
Other real estate owned	$	1,545	Discounted appraised value	Discount for lack of marketability	6-29% (14)	%

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The calculation for basic and diluted earnings per common share for the three months and six months ended June 30, 2014 and 2013 are as follows:

	Three months ended June 30,				Six months ended June 30,
(dollars in thousands)	2014		2013		2014		2013
Net income (loss) attributable to Company	$	(270)	$	261	$	(554)	$	482
Weighted average basic shares outstanding		3,017,772		2,764,090		2,898,047		2,431,019
Basic income (loss) per common share	$	(0.09)	$	0.09	$	(0.19)	$	0.20
Weighted average dilutive shares outstanding		3,017,772		2,775,802		2,898,047		2,444,923
Diluted income (loss) per common share	$	(0.09)	$	0.09	$	(0.19)	$	0.20

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Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2014

Statement of Comprehensive Income [Abstract]

Other Comprehensive Income, Noncontrolling Interest [Text Block]

Note 9. Other Comprehensive Income (Loss)

 

The changes in accumulated other comprehensive income (loss) for the six months ended June 30, 2014 and 2013 are summarized as follows:

	Accumulated Other Comprehensive Income (loss)
(dollars in thousands)	Six Months Ended June 30,
	2014		2013
Beginning balance	$	(384)	$	56
Unrealized holding losses on available for sale securities		(81)		(280)
Amortization of AFS to HTM reclassification adjustment		25		-
Net current period other comprehensive income		(56)		(280)
Ending balance	$	(440)	$	(224)

The following table presents information on amounts reclassified out of accumulated other comprehensive income (loss), by category, during the periods indicated:

(in thousands)	Three Months Ended June 30,				Six Months Ended June 30,				Affected Line Item on
	2014		2013		2014		2013		Condensed Consolidated Statement of Operations
Available-for-sale securities
Realized gains on sales of securities	$	-	$	-	$	64	$	-	Net gain on sale of available-for-sale securities

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Other Comprehensive Income (Loss) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Beginning balance			$ (384)	$ 56
Unrealized holding losses on available for sale securities	(66)	(259)	(81)	(280)
Amortization of AFS to HTM reclassification adjustment	(11)	0	(25)	0
Net current period other comprehensive income	(55)	(259)	(56)	(280)
Ending balance	$ (440)	$ (224)	$ (440)	$ (224)

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Fair Value Measurements

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value, Measurement Inputs, Disclosure [Text Block]

Note 7. Fair Value Measurements

Fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practical to estimate the value is based upon the characteristics of the instruments and relevant market information. Financial instruments include cash, evidence of ownership in an entity, or contracts that convey or impose on an entity that contractual right or obligation to either receive or deliver cash for another financial instrument. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by a quoted market price if one exists.

The following presents the methodologies and assumptions used to estimate the fair value of the Company’s financial instruments. The information used to determine fair value is highly subjective and judgmental in nature and, therefore, the results may not be precise. Subjective factors include, among other things, estimates of cash flows, risk characteristics, credit quality, and interest rates, all of which are subject to change. Since the fair value is estimated as of the balance sheet date, the amounts that will actually be realized or paid upon settlement or maturity on these various instruments could be significantly different.

Financial Instruments with Book Value Equal to Fair Value

The book values of cash and due from banks, federal funds sold and purchased, interest receivable, and interest payable are considered to be equal to fair value as a result of the short-term nature of these items.

Securities

The fair value for securities available for sale and securities held to maturity is based on current market quotations, where available. If quoted market prices are not available, fair value has been based on the quoted price of similar instruments. Restricted securities are valued at cost which is also the stated redemption value of the shares.

Loans Held for  Investment

The estimated value of loans held for investment is measured based upon discounted future cash flows using the current rates for similar loans, as well as assumptions related to credit risk.

Deposits

Deposits without a stated maturity, including demand, interest-bearing demand, and savings accounts, are reported at their carrying value in accordance with authoritative accounting guidance. No value has been assigned to the franchise value of these deposits. For other types of deposits with fixed maturities, fair value has been estimated by discounting future cash flows based on interest rates currently being offered on deposits with similar characteristics and maturities.

Borrowings and Other Indebtedness

Fair value has been estimated based on interest rates currently available to the Company for borrowings with similar characteristics and maturities.

Commitments to Extend Credit, Standby Letters of Credit, and Financial Guarantees

Fair values for off-balance-sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. At June 30, 2014, the fair value of loan commitments and standby letters of credit was deemed to be immaterial and therefore is not included.

Determination of Fair Value

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the Fair Value Measurements and Disclosure topic of FASB ASC, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under market conditions depends on the facts and circumstances and requires the use of significant judgment.

Authoritative accounting literature specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy based on these two types of inputs are as follows:

Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets.

Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

Level 3 Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

The carrying value and fair values of financial assets and liabilities are as follows:

			Fair Value Measurements at June 30, 2014
	Carrying
(dollars in thousands)	amount		Level 1		Level 2		Level 3		Fair Value
Assets:
Cash and cash equivalents	$	15,175	$	15,175	$	-	$	-	$	15,175
Securities available for sale		45,835		-		45,835		-		45,835
Securities held to maturity		21,839		-		21,959		-		21,959
Restricted securities		1,525		-		1,525		-		1,525
Net Loans held for investment		202,878		-		-		203,842		203,842
Interest receivable		1,830		-		1,830		-		1,830
Liabilities:
Demand deposits		24,883		-		24,883		-		24,883
Savings and interest-bearing demand deposits		76,044		-		76,044		-		76,044
Time deposits		144,266		-		144,918		-		144,918
FHLB Borrowings		20,000		-		19,747		-		19,747
Interest payable		150		-		150		-		150

			Fair Value Measurements at December 31, 2013
	Carrying
(dollars in thousands)	amount		Level 1		Level 2		Level 3		Fair Value
Assets:
Cash and cash equivalents	$	13,984	$	13,984	$	-	$	-	$	13,984
Securities available for sale		24,567		-		24,567		-		24,567
Securities held to maturity		14,753		-		14,597		-		14,597
Restricted securities		1,074		-		1,074		-		1,074
Loans held for investment		172,518		-		-		173,444		173,444
Interest receivable		1,655		-		1,655		-		1,655
Liabilities:
Demand deposits		22,845		-		22,845		-		22,845
Savings and interest-bearing demand deposits		60,685		-		60,685		-		60,685
Time deposits		127,284		-		127,966		-		127,966
FHLB Borrowings		10,000		-		9,656		-		9,656
Interest payable		143		-		143		-		143

The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements:

Securities available for sale

Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2).

The following table presents the balances of financial assets measured at fair value on a recurring basis:

			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(dollars in thousands)	Balance		(Level 1)		(Level 2)		(Level 3)
June 30, 2014
U. S. Government Agencies	$	3,474	$	-	$	3,474	$	-
Agency Guaranteed Mortgage-backed securities		42,361		-		42,361		-
December 31, 2013
U. S. Government Agencies	$	7,041	$	-	$	7,041	$	-
Agency Guaranteed Mortgage-backed securities		17,526		-		17,526		-

Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets.

The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements:

Impaired Loans

Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company using observable market data (Level 2). However, if the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Company because of marketability, then the fair value is considered Level 3. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’ financial statements if not considered significant. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Impaired loans allocated to the Allowance for Loan Losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Consolidated Statements of Operations. There was one impaired loan fair valued on a nonrecurring basis at June 30, 2014 and no impaired loans fair valued on a nonrecurring basis at December 31, 2013.

Other Real Estate Owned (OREO)

Other real estate owned (“OREO”) is measure at fair value less costs to sell, based on an appraisal conducted by an independent, licensed appraiser outside of the Company. If the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Company because of marketability, then the fair value is considered Level 3. OREO is measured at fair value on a nonrecurring basis. Any initial fair value adjustment is charged against the Allowance for Loan Losses. Subsequent fair value adjustments are recorded in the period incurred and included in other noninterest expense on the Consolidated Statements of Operations.

The following tables summarize the Company’s assets that were measured at fair value on a nonrecurring basis:

			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(dollars in thousands)	Balance		(Level 1)		(Level 2)		(Level 3)
June 30, 2014
Impaired loan	$	17	$	-	$	-	$	17
OREO	$	1,543	$	-	$	-	$	1,543
December 31, 2013
OREO	$	1,545	$	-	$	-	$	1,545

The following table presents qualitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at June 30, 2014 and December 31, 2013:

	June 30, 2014
(dollars in thousands)	Quantitative Information About Level 3 Fair Value Measurements
Description	Fair Value		Valuation Technique	Unobservable input	Range (Weighted Average)
Impaired loan - commercial and industrial	$	17	Contract review	Management discount based on underlying collateral characteristics and sales contract	(67)	%
Other real estate owned	$	1,543	Discounted appraised value	Discount for lack of marketability	6-29% (13)	%

	December 31, 2013
(dollars in thousands)	Quantitative Information About Level 3 Fair Value Measurements
Description	Fair Value		Valuation Technique	Unobservable input	Range (Weighted Average)
Other real estate owned	$	1,545	Discounted appraised value	Discount for lack of marketability	6-29% (14)	%

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2014

Share-Based Compensation [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 8. Stock-Based Compensation

 

Stock-based compensation arrangements include stock options, restricted stock plans, performance-based awards, stock appreciation rights and employee stock purchase plans. ASC Topic 718 requires all share-based payments to employees to be valued using a fair value method on the date of grant and to be expensed based on that fair value over the applicable vesting period.

At the 2005 Annual Meeting, shareholders ratified approval of the Bank of Virginia 2005 Stock Option Plan (the “2005 Plan”) which made available up to 26,560 shares for potential grants of stock options. The Plan was instituted to encourage and facilitate investment in the common stock of the Bank by key employees and executives and to assist in the long-term retention of service by those executives. The Plan covers employees as determined by the Bank’s Board of Directors from time to time. Options under the Plan were granted in the form of incentive stock options.

At the 2011 Annual Meeting, the Bank’s shareholders approved a new share-based compensation plan (Bank of Virginia 2011 Stock Incentive Plan or the “2011 Plan”). Under this plan, employees, officers and directors of the Bank or its affiliates are eligible to participate. The plan’s intent was to reward employees, officers and directors of the Bank or its affiliates for their efforts, to assist in the long-term retention of service for those who were awarded, as well as further align their interests with the Bank’s shareholders. At the 2014 Annual Meeting, Cordia shareholders approved an amendment to the 2011 Plan to increase the number of shares authorized for issuance by an additional 800,000 shares. There are 906,240 shares reserved under the 2011 Plan.

There were 20,000 Cordia stock options granted outside the plan prior to the share exchange in March 2013. In addition, there were 10,000 stock options and 12,500 restricted stock shares issued in September 2013 outside the plan as an inducement grant to a newly hired officer.

As of the share exchange on March 29, 2013, the 2005 and 2011 Plans were assumed by Cordia.

A summary of the Company’s option activity as of June 30, 2014 and changes during the period then ended are presented in the following table:

					Wgt. Avg.
		Wgt. Avg.			Remaining	Wgt. Avg.		Aggregate
		Exercise			Contractual	Grant Date		Intrinsic
As of 1/1/2014	Stock Options	Price			Life	Fair Value		Value
Outstanding	115,656	$	7.68	$	8.44	$	2.54	$	88
Vested	28,438	$	12.80	$	7.36	$	4.31		-
Nonvested	87,218	$	6.01	$	8.80	$	1.96	$	88
Period Activity
Issued	20,400	$	4.19		-	$	1.52		-
As of 6/30/2014
Outstanding	136,056	$	7.15		8.24	$	2.39	$	882
Vested	44,416	$	10.05		7.47	$	3.36	$	158
Nonvested	91,640	$	5.75		8.62	$	1.91	$	724

							Wgt. Avg.
Outstanding as of June 30, 2014					Wgt. Avg.		Remaining
				Stock Options	Exercise		Contractual
Range of Exercise Prices				Outstanding	Price		Life
$	3.83	$	7.00	109,232	$	5.17	8.64
$	7.01	$	12.00	24,168	$	10.26	7.24
$	12.01	$	60.24	2,656	$	60.24	1.13
				136,056	$	7.15	8.24

Exercisable:					Wgt. Avg.
				Stock Options	Exercise
Range of Exercise Prices				Exercisable	Price
$	3.83	$	7.00	29,876	$	5.49
$	7.01	$	12.00	11,885	$	10.32
$	12.01	$	60.24	2,656	$	60.24
				44,416	$	10.05

Assumptions:
	Six Months Ended June 30, 2014		Year Ended December 31, 2013
Expected Volatility	30.0% - 30.0	%	30.0% - 30.0	%
Weighted-Average Volatility	30.00	%	30.00	%
Expected Dividends	-		-
Expected Term (In years)	7.00		7.00
Risk-Free Rate	2.17	%	1.42	%

Total intrinsic value of options exercised:	$	-
Total fair value of shares vested:		26,716
Weighted-average period over which nonvested awards are expected to be recognized:		1.38 years

A summary of the Company’s restricted stock activity as of June 30, 2014 and changes during the period then ended are presented in the following table:

		Wgt. Avg.
		Grant Date
As of 1/1/2014	Restricted Stock	Fair Value
Nonvested	11,700	$	4.41
Period Activity
Issued	87,658	$	4.20
Vested	11,718	$	4.23
Forfeited	-		-
As of 6/30/2014
Nonvested	87,640	$	4.22

Total fair value of shares vested:	$	49,543
Weighted-average period over which nonvested awards are expected to be recognized:		1.36 year(s)
Unamortized compensation expense	$	346,682

A total of 578,125 of restricted shares of common stock were sold to founding investors of Cordia predominantly during 2009 and 2010 and are considered at June 30, 2014 more-likely-than-not to not vest due to significant performance based thresholds, for which the vesting time period expires in October 2016.

Cordia does not have any benefit plans or incentive compensation plans beyond those maintained by the Bank. Cordia does provide a life insurance benefit to the President and Chief Executive Officer under the terms of his employment agreement.

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Preferred Stock Issuance and Conversion

6 Months Ended

Jun. 30, 2014

Preferred Stock Issuance And Conversion [Abstract]

Preferred Stock Issuance And Conversion [Text Block]

Note 10. Preferred Stock Issuance and Conversion

On April 10, 2014, Cordia completed the sale of approximately 363 shares of Mandatorily Convertible, Noncumulative, Nonvoting, Perpetual Preferred Stock, Series A, $0.01 par value per share, to accredited investors at a purchase price of $42,500 per share for total gross proceeds of $15.4 million. The capital raise included investments by various Cordia directors and officers. The net proceeds of the offering are expected to be used primarily to provide growth capital to BVA.

On June 25, 2014, upon stockholder approval, each share of Series A Preferred Stock mandatorily converted into 10,000 shares of Cordia’s common stock at an initial conversion price of $4.25 per share, for a total issuance of approximately 3,629,871 new shares of common stock, of which 2,229,434 are voting and 1,400,437 are nonvoting. The holders of the Series A Preferred Stock did not receive any dividends under the provisions of the plan based on the timing of approval of the Company's stockholders.

Other than voting rights, the nonvoting common stock has the same rights and privileges as the common stock, including sharing ratably in all assets of the Company upon its liquidation, dissolution or winding-up, and entitlement to receive dividends in the same amount per share and at the same time when, as and if declared by the Board, and is identical to the common stock in all other respects as to all other matters (other than voting). Holders of nonvoting common stock have no cumulative voting rights or preemptive rights (other than the limited contractual preemptive rights of certain investors in the private placement offering) to purchase or subscribe for any additional shares of common stock or nonvoting common stock or other securities, and there are no conversion rights or redemption or sinking fund provisions with respect to the nonvoting common stock.

Authorized Shares. 5,000,000 shares of nonvoting common stock, par value of $0.01 per share, are authorized and 1,400,437 shares of nonvoting common stock are outstanding.

Voting Rights. Holders of nonvoting common stock are not entitled to vote except as required by the Virginia Stock Corporation Act. Where the shares of nonvoting common stock are entitled to vote under Virginia law, each holder of nonvoting common stock will have one vote for each share of nonvoting common stock held of record solely on the matters to which such shares are entitled to vote, and subject to the rights and limitations specified by the Virginia Stock Corporation Act.

Automatic Conversion Upon Permitted Transfer. Each share of nonvoting common stock will automatically convert into one share of common stock in the event of a “permitted transfer” to a transferee. A “permitted transfer” is a transfer of nonvoting common stock (i) in a widespread public distribution, (ii) in which no transferee (or group of associated transferees) would receive 2% or more of any class of voting securities of the Company, or (iii) to a transferee that would control more than 50% of the voting securities of the Company without any transfer from such holder of nonvoting common stock.

Dividends. Subject to the prior rights of the holders of shares of preferred stock that may be issued and outstanding, the holders of nonvoting common stock are entitled to receive dividends when, as and if declared by the Company’s Board of Directors out of funds lawfully available for the payment of dividends.

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Securities (Details 3) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Unrealized Losses on Securities Less than 12 Months Estimated Fair Value	$ 34,134	$ 21,033
Unrealized Losses on Securities Less than 12 Months Estimated Unrealized Losses	(201)	(231)
Unrealized Losses on Securities 12 Months or longer Estimated Fair Value	968	2,914
Unrealized Losses on Securities 12 Months or longer Estimated Unrealized Losses	(19)	(40)
Estimated Fair Value	35,102	23,947
Unrealized Losses	(220)	(271)
U.S. Government Agencies [Member]
Unrealized Losses on Securities Less than 12 Months Estimated Fair Value	3,474	3,697
Unrealized Losses on Securities Less than 12 Months Estimated Unrealized Losses	(28)	(53)
Unrealized Losses on Securities 12 Months or longer Estimated Fair Value	0	0
Unrealized Losses on Securities 12 Months or longer Estimated Unrealized Losses	0	0
Estimated Fair Value	3,474	3,697
Unrealized Losses	(28)	(53)
Agency Guaranteed Mortgage- Backed Securities [Member]
Unrealized Losses on Securities Less than 12 Months Estimated Fair Value	30,660	17,336
Unrealized Losses on Securities Less than 12 Months Estimated Unrealized Losses	(173)	(178)
Unrealized Losses on Securities 12 Months or longer Estimated Fair Value	968	2,914
Unrealized Losses on Securities 12 Months or longer Estimated Unrealized Losses	(19)	(40)
Estimated Fair Value	31,628	20,250
Unrealized Losses	$ (192)	$ (218)

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Fair Value Measurements (Details 2) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Impaired loan	$ 17
OREO	1,543	1,545
Fair Value, Inputs, Level 1 [Member]
Impaired loan	0
OREO	0	0
Fair Value, Inputs, Level 2 [Member]
Impaired loan	0
OREO	0	0
Fair Value, Inputs, Level 3 [Member]
Impaired loan	17
OREO	$ 1,543	$ 1,545

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Loans, Allowance for Loan Losses and Credit Quality (Tables)

6 Months Ended

Jun. 30, 2014

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

The table below presents loans by sub-segment at June 30, 2014 and December 31, 2013.

(dollars in thousands)	June 30, 2014		December 31, 2013
Commercial Real Estate:
Acquisition, development and construction	$	2,263	$	3,475
Non-owner occupied		35,070		28,606
Owner occupied		53,576		50,500
Commercial and industrial		24,605		21,085
Guaranteed student loans		70,624		55,427
Consumer:
Residential mortgage		8,508		7,156
HELOC		9,105		7,250
Other		534		508
Total loans		204,285		174,007
Allowance for loan losses		(1,407)		(1,489)
Total loans, net of allowance for loan losses	$	202,878	$	172,518

Schedule Of Loans Acquired In Business Combination [Table Text Block]

Acquired in the acquisition of Bank of Virginia in 2010, and included in the table above, are loans acquired with evidence of deterioration in credit quality. These loans are accounted for under the guidance ASC 310-30. Information related to these loans is as follows:

(dollars in thousands)	June 30, 2014		December 31, 2013
Contract principal balance	$	7,667	$	8,689
Accretable discount		(52)		(62)
Nonaccretable discount		(5)		(61)
Book value of loans	$	7,610	$	8,566

Summary Of Changes To Accretable and Non Accretable Discounts [Table Text Block]

A summary of changes to the accretable and nonaccretable discounts during the six months ended June 30, 2014 and 2013 is as follows:

	Six Months Ending June 30.
	2014				2013
(dollars in thousands)	Accretable Discount		Nonaccretable Discount		Accretable Discount		Nonaccretable Discount
Beginning balance	$	62	$	61	$	476	$	165
Charge-offs related to loans covered by ASC 310-30		-		(56)		-		-
Transfer to accretable discount		-		-		104		(104)
Discount accretion		(10)		-		(326)		-
Ending balance	$	52	$	5	$	254	$	61

Financing Receivable Credit Quality Indicators [Table Text Block]

The following is the distribution of loans by credit quality and segment as of June 30, 2014 and December 31, 2013:

	June 30, 2014
(dollars in thousands)	Commercial Real Estate										Consumer
Credit quality class	Acq-Dev Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
1 Highest quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
2 Above average quality		-		2,018		3,132		2,015		70,624		49		961		45		78,844
3 Satisfactory		229		16,030		28,538		12,921		-		4,133		4,746		403		67,000
4 Pass		781		15,405		18,394		7,557		-		4,016		2,354		86		48,593
5 Special mention		-		126		-		81		-		124		319		-		650
6 Substandard		270		-		259		786		-		-		273		-		1,588
7 Doubtful		-		-		-		-		-		-		-		-		-
		1,280		33,579		50,323		23,360		70,624		8,322		8,653		534		196,675
Loans acquired with deteriorating credit quality		983		1,491		3,253		1,245		-		186		452		-		7,610
Total loans	$	2,263	$	35,070	$	53,576	$	24,605	$	70,624	$	8,508	$	9,105	$	534	$	204,285

	December 31, 2013
(dollars in thousands)	Commercial Real Estate										Consumer
Credit quality class	Acq-Dev Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
1 Highest quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
2 Above average quality		-		2,078		2,966		2,170		55,427		73		205		80		62,999
3 Satisfactory		325		10,563		25,264		8,290		-		3,965		3,541		350		52,298
4 Pass		1,500		12,990		14,606		8,128		-		2,710		2,243		78		42,255
5 Special mention		299		1,449		3,486		268		-		203		630		-		6,335
6 Substandard		267		-		336		759		-		15		177		-		1,554
7 Doubtful		-		-		-		-		-		-		-		-		-
		2,391		27,080		46,658		19,615		55,427		6,966		6,796		508		165,441
Loans acquired with deteriorating credit quality		1,084		1,526		3,842		1,470		-		190		454		-		8,566
Total loans	$	3,475	$	28,606	$	50,500	$	21,085	$	55,427	$	7,156	$	7,250	$	508	$	174,007

Past Due Financing Receivables [Table Text Block]

A summary of the balances of loans outstanding by days past due, including accruing and non-accruing loans by portfolio class as of June 30, 2014 and December 31, 2013 is as follows:

	June 30, 2014
	Commercial Real Estate										Consumer
(dollars in thousands)	Acq-Dev Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
30 - 59 days	$	-	$	-	$	-	$	93	$	3,803	$	-	$	-	$	-	$	3,896
60 - 89 days		-		-		-		-		5,565		-		-		-		5,565
> 90 days		548		-		568		93		10,370		44		-		-		11,623
Total past due		548		-		568		186		19,738		44		-		-		21,084
Current		1,715		35,070		53,008		24,419		50,886		8,464		9,105		534		183,201
Total loans	$	2,263	$	35,070	$	53,576	$	24,605	$	70,624	$	8,508	$	9,105	$	534	$	204,285
> 90 days still accruing	$	-	$	-	$	-	$	-	$	10,370	$	-	$	-	$	-	$	10,370

	December 31, 2013
	Commercial Real Estate										Consumer
(dollars in thousands)	Acq-Dev Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
30 - 59 days	$	-	$	-	$	-	$	-	$	5,044	$	54	$	-	$	-	$	5,098
60 - 89 days		-		-		-		-		2,268		15		-		-		2,283
> 90 days		633		-		2,051		632		18,387		44		-		-		21,747
Total past due		633		-		2,051		632		25,699		113		-		-		29,128
Current		2,842		28,606		48,449		20,453		29,728		7,043		7,250		508		144,879
Total loans	$	3,475	$	28,606	$	50,500	$	21,085	$	55,427	$	7,156	$	7,250	$	508	$	174,007
> 90 days still accruing	$	-	$	-	$	-	$	-	$	18,387	$	-	$	-	$	-	$	18,387

Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

A summary of non-accrual loans by portfolio class is as follows:

(dollars in thousands)	June 30, 2014		December 31, 2013
Commercial Real Estate:
Acquisition, development and construction	$	548	$	633
Owner occupied		988		2,051
Commercial and industrial		668		858
Consumer:
Residential mortgage		44		59
HELOC		324		333
Total non-accrual loans	$	2,572	$	3,934
Non-accrual troubled debt restructurings included above	$	994	$	119

Impaired Financing Receivables [Table Text Block]

The following information is a summary of related impaired loans, excluding loans acquired with deteriorating credit quality, presented by portfolio class as of June 30, 2014:

(dollars in thousands)	Recorded Investment		Unpaid Principal		Related Allowance		Average Recorded Investment		Interest Recorded
With no related allowance recorded:
Commercial Real Estate:
Acquisition, development and construction	$	270	$	270	$	-	$	269	$	8
Non-owner occupied		1,342		1,342		-		1,648		44
Owner occupied		259		259		-		259		-
Commercial and industrial		734		734		-		667		3
Consumer:
Residential mortgage		-		-		-		-		-
HELOC		273		273		-		274		6
Other		-		-		-				-
Total	$	2,878	$	2,878	$	-	$	3,117	$	61
With an allowance recorded:
Commercial Real Estate:
Acquisition, development and construction	$	-	$	-	$	-	$	-	$	-
Non-owner occupied		-		-		-		-		-
Owner occupied		-		-		-		-		-
Commercial and industrial		52		52		35		52		-
Consumer:
Residential mortgage		-		-		-		-		-
HELOC		-		-		-		-		-
Other		-		-		-		-		-
Total	$	52	$	52	$	35	$	52	$	-

The following information is a summary of related impaired loans, excluding loans acquired with deteriorating credit quality, presented by portfolio class as of December 31, 2013:

(dollars in thousands)	Recorded Investment		Unpaid Principal		Related Allowance		Average Recorded Investment		Interest Recorded
With no related allowance recorded:
Commercial Real Estate:
Acquisition, development and construction	$	267	$	267	$	-	$	267	$	19
Non-owner occupied		1,352		1,352		-		1,652		83
Owner occupied		259		259		-		259		-
Commercial and industrial		759		759		-		759		44
Consumer:
Residential mortgage		15		15		-		15		5
HELOC		177		177		-		177		8
Other		-		-		-		-		-
Total	$	2,829	$	2,829	$	-	$	3,129	$	159
With an allowance recorded:
Commercial Real Estate:
Acquisition, development and construction	$	-	$	-	$	-	$	-	$	-
Non-owner occupied		-		-		-		-		-
Owner occupied		-		-		-		-		-
Commercial and industrial		-		-		-		-		-
Consumer:
Residential mortgage		-		-		-		-		-
HELOC		-		-		-		-		-
Other		-		-		-		-		-
Total	$	-	$	-	$	-	$	-	$	-

Allowance for Credit Losses on Financing Receivables [Table Text Block]

Activity in the allowance for loan losses for the six months ended June 30, 2014 and June 30, 2013 is summarized below:

	Commercial Real Estate										Consumer
(dollars in thousands)	Acquisition, Development, Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
Allowance for loan losses
Beginning balance, December 31, 2013	$	300	$	39	$	322	$	377	$	268	$	120	$	20	$	43	$	1,489
Charge-offs		(6)		(114)		-		(17)		(265)		-		-		-		(402)
Recoveries		3		47		-		18		-		2		2		19		91
Net Charge-offs (recoveries)		(3)		(67)		-		1		(265)		2		2		19		(311)
Provision (recovery)		(101)		149		(158)		131		191		63		(11)		(35)		229
Ending balance, June 30, 2014	$	196	$	121	$	164	$	509	$	194	$	185	$	11	$	27	$	1,407

	Commercial Real Estate										Consumer
(dollars in thousands)	Acquisition, Development, Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
Allowance for loan losses
Beginning balance, December 31, 2012	$	229	$	231	$	350	$	782	$	-	$	50	$	457	$	11	$	2,110
Charge-offs		-		-		(289)		-		(39)		-		(365)		(8)		(701)
Recoveries		1		-		-		18		-		-		-		-		19
Net Charge-offs (recoveries)		1		-		(289)		18		(39)		-		(365)		(8)		(682)
Provision (recovery)		(107)		57		483		(546)		295		2		(51)		1		134
Ending balance, June 30, 2013	$	123	$	288	$	544	$	254	$	256	$	52	$	41	$	4	$	1,562

Summary Of Allowance For Loan Losses By Portfolio Segment [Table Text Block]

A summary of the allowance for loan losses by portfolio segment and impairment evaluation methodology as of June 30, 2014 and December 31, 2013 is as follows:

	Commercial Real Estate										Consumer
(dollars in thousands)	Acquisition, Development, Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
Allowance for loan losses
Individually evaluated for impairment	$	-	$	-	$	-	$	35	$	-	$	-	$	-	$	-	$	35
Collectively evaluated for impairment		156		121		164		474		194		185		11		27		1,332
Loans acquired with deteriorated credit quality		40		-		-		-		-		-		-		-		40
Ending balance, June 30, 2014	$	196	$	121	$	164	$	509	$	194	$	185	$	11	$	27	$	1,407
Gross loan balances
Individually evaluated for impairment	$	270	$	1,342	$	259	$	786	$	-	$	-	$	273	$	-	$	2,930
Collectively evaluated for impairment		1,010		32,237		50,064		22,574		70,624		8,322		8,380		534		193,745
Loans acquired with deteriorated credit quality		983		1,491		3,253		1,245		-		186		452		-		7,610
Ending balance, June 30, 2014	$	2,263	$	35,070	$	53,576	$	24,605	$	70,624	$	8,508	$	9,105	$	534	$	204,285

	Commercial Real Estate										Consumer
(dollars in thousands)	Acquisition, Development, Construction		Non-owner Occupied		Owner Occupied		Commercial and Industrial		Guaranteed Student Loans		Residential Mortgage		HELOC		Other		Total
Allowance for loan losses for loans
Individually evaluated for impairment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Collectively evaluated for impairment		260		39		128		377		268		120		20		43		1,255
Loans acquired with deteriorated credit quality		40		-		194		-		-		-		-		-		234
Ending balance, December 31, 2013	$	300	$	39	$	322	$	377	$	268	$	120	$	20	$	43	$	1,489
Gross loan balances
Individually evaluated for impairment	$	267	$	1,352	$	259	$	759	$	-	$	15	$	177	$	-	$	2,829
Collectively evaluated for impairment		2,124		25,728		46,399		18,856		55,427		6,951		6,619		508		162,612
Loans acquired with deteriorated credit quality		1,084		1,526		3,842		1,470		-		190		454		-		8,566
Ending balance, December 31, 2013	$	3,475	$	28,606	$	50,500	$	21,085	$	55,427	$	7,156	$	7,250	$	508	$	174,007

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The number and outstanding recorded investment of loans entered into under the terms of a TDR, including modifications of acquired impaired loans, by type of concession granted, are set forth in the following tables:

	Three and Six Months Ended June 30, 2014
(dollars in thousands)	Number of loans	Rate modification	Term extension		Pre-modification recorded investment		Post-modification recorded investment
Commercial and industrial	1	-	$	512	$	512	$	495
Commercial real estate - owner occupied	1	-		595		595		425
Total	2	-	$	1,107	$	1,107	$	920

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Organization and Summary of Significant Accounting Policies (Details Textual) (Bank of Virginia [Member], USD $) In Millions, except Share data, unless otherwise specified	Mar. 29, 2013	Aug. 28, 2012	Dec. 10, 2010
Bank of Virginia [Member]
Equity Method Investments		$ 3.0	$ 10.3
Business Acquisition, Percentage of Voting Interests Acquired			59.80%
Business Acquisition Share Issued Per Share Of Minority Share Of Acquire	0.664
Equity Method Investment, Ownership Percentage	100.00%		59.80%

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Fair Value Measurements (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2012
Assets:
Cash and cash equivalents	$ 15,175	$ 13,984	$ 31,522	$ 11,981
Securities available for sale	45,835	24,567
Securities held to maturity	21,839	14,753
Interest receivable	1,830	1,655
Liabilities:
Demand deposits	76,044	60,685
FHLB Borrowings	20,000	10,000
Fair Value, Inputs, Level 1 [Member]
Assets:
Cash and cash equivalents	15,175	13,984
Securities available for sale	0	0
Securities held to maturity	0	0
Restricted securities	0	0
Net Loans held for investment	0	0
Interest receivable	0	0
Liabilities:
Demand deposits	0	0
Savings and interest-bearing demand deposits	0	0
Time deposits	0	0
FHLB Borrowings	0	0
Interest payable	0	0
Fair Value, Inputs, Level 2 [Member]
Assets:
Cash and cash equivalents	0	0
Securities available for sale	45,835	24,567
Securities held to maturity	21,959	14,597
Restricted securities	1,525	1,074
Net Loans held for investment	0	0
Interest receivable	1,830	1,655
Liabilities:
Demand deposits	24,883	22,845
Savings and interest-bearing demand deposits	76,044	60,685
Time deposits	144,918	127,966
FHLB Borrowings	19,747	9,656
Interest payable	150	143
Fair Value, Inputs, Level 3 [Member]
Assets:
Cash and cash equivalents	0	0
Securities available for sale	0	0
Securities held to maturity	0	0
Restricted securities	0	0
Net Loans held for investment	203,842	173,444
Interest receivable	0	0
Liabilities:
Demand deposits	0	0
Savings and interest-bearing demand deposits	0	0
Time deposits	0	0
FHLB Borrowings	0	0
Interest payable	0	0
Carrying Amount [Member]
Assets:
Cash and cash equivalents	15,175	13,984
Securities available for sale	45,835	24,567
Securities held to maturity	21,839	14,753
Restricted securities	1,525	1,074
Net Loans held for investment	202,878	172,518
Interest receivable	1,830	1,655
Liabilities:
Demand deposits	24,883	22,845
Savings and interest-bearing demand deposits	76,044	60,685
Time deposits	144,266	127,284
FHLB Borrowings	20,000	10,000
Interest payable	150	143
Fair Value [Member]
Assets:
Cash and cash equivalents	15,175	13,984
Securities available for sale	45,835	24,567
Securities held to maturity	21,959	14,597
Restricted securities	1,525	1,074
Net Loans held for investment	203,842	173,444
Interest receivable	1,830	1,655
Liabilities:
Demand deposits	24,883	22,845
Savings and interest-bearing demand deposits	76,044	60,685
Time deposits	144,918	127,966
FHLB Borrowings	19,747	9,656
Interest payable	$ 150	$ 143

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Loans, Allowance for Loan Losses and Credit Quality (Details 5) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Total non-accrual loans	$ 2,572	$ 3,934
Non-accrual troubled debt restructurings included above [Member]
Total non-accrual loans	994	119
Commercial Real Estate [Member] | Acquisition, Development, and Construction [Member]
Total non-accrual loans	548	633
Commercial Real Estate [Member] | Owner Occupied [Member]
Total non-accrual loans	988	2,051
Commercial and Industrial [Member]
Total non-accrual loans	668	858
Consumer [Member] | Residential Mortgage [Member]
Total non-accrual loans	44	59
Consumer [Member] | Home Equity Lines of Credit [Member]
Total non-accrual loans	$ 324	$ 333

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Condensed Consolidated Statement of Comprehensive Income (Loss) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Net income (loss)	$ (270)	$ 261	$ (554)	$ 482
Unrealized losses on available for sale securities	(66)	(259)	(81)	(280)
Amortization of AFS to HTM reclassification adjustment	11	0	25	0
Other comprehensive loss	(55)	(259)	(56)	(280)
Comprehensive income (loss)	$ (325)	$ 2	$ (610)	$ 202

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Securities

6 Months Ended

Jun. 30, 2014

Marketable Securities [Abstract]

Cash, Cash Equivalents, and Marketable Securities [Text Block]

Note 4. Securities

 

Our investment portfolio consists of U.S. agency debt and agency guaranteed mortgage-backed securities. Our investment security portfolio includes securities classified as available for sale as well as securities classified as held to maturity. We classify securities as available for sale or held to maturity based on our investment strategy and management’s assessment of our intent and ability to hold the securities until maturity. The total securities portfolio (excluding restricted securities) was $67.7 million at June 30, 2014 as compared to $39.3 million at December 31, 2013. At June 30, 2014, the securities portfolio consisted of $45.8 million of securities available for sale, at fair value and $21.8 million of securities held to maturity, at amortized cost.

The table below presents the amortized cost, gross unrealized gains and losses, and fair value of securities available for sale at June 30, 2014 and December 31, 2013.

	June 30, 2014
	Amortized		Gross Unrealized				Estimated
(dollars in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	3,502	$	-	$	(28)	$	3,474
Agency guaranteed mortgage-backed securities		42,463		69		(171)		42,361
Total	$	45,965	$	69	$	(199)	$	45,835

	December 31, 2013
	Amortized		Gross Unrealized				Estimated
(dollars in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	7,038	$	56	$	(53)	$	7,041
Agency guaranteed mortgage-backed securities		17,578		10		(62)		17,526
Total	$	24,616	$	66	$	(115)	$	24,567

The table below presents the carry value, gross unrealized gains and losses, and fair value of securities held to maturity at June 30, 2014 and December 31, 2013.

	June 30, 2014
	Carry		Gross Unrealized				Estimated
(dollars in thousands)	Value		Gains		Losses		Fair Value
Agency guaranteed mortgage-backed securities	$	21,839	$	141	$	(21)	$	21,959

	December 31, 2013
			Gross Unrealized				Estimated
(dollars in thousands)	Carry Value		Gains		Losses		Fair Value
Agency guaranteed mortgage-backed securities	$	14,753	$	-	$	(156)	$	14,597

The amortized cost and fair value of securities available for sale as of June 30, 2014, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. They are as follows:

(Dollars in thousands)	Amortized Cost		Estimated Fair Value
Over five years within ten years	$	513	$	515
Over ten years		45,452		45,320
Total	$	45,965	$	45,835

The carrying value and fair value of securities held to maturity as of June 30, 2014, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. They are as follows:

(Dollars in thousands)	Carry Value		Estimated Fair Value
Over five years within ten years	$	3,727	$	3,776
Over ten years		18,112		18,183
Total	$	21,839	$	21,959

As of June 30, 2014, the portfolio is concentrated in average maturities of over ten years, although a substantial majority of recently purchased securities have effective durations much shorter than ten years.. The portfolio is available to support liquidity needs of the Company. The Company sold no available for sale securities during the three months ended June 30, 2014. During the six months ended June 30, 2014, the Company sold $8.9 million available for sale securities and recognized a gain of $64 thousand in noninterest income. There were no sales of securities available for sale during the six months ended June 30, 2013.

Unrealized losses on investments at June 30, 2014 and December 31, 2013 were as follows:

	June 30, 2014
	Less than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
U.S. Government agencies	$	3,474	$	(28)	$	-	$	-	$	3,474	$	(28)
Agency guaranteed mortgage-backed securities		30,660		(173)		968		(19)		31,628		(192)
Total	$	34,134	$	(201)	$	968	$	(19)	$	35,102	$	(220)

	December 31, 2013
(dollars in thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
U.S. Government agencies	$	3,697	$	(53)	$	-	$	-	$	3,697	$	(53)
Agency guaranteed mortgage-backed securities		17,336		(178)		2,914		(40)		20,250		(218)
Total	$	21,033	$	(231)	$	2,914	$	(40)	$	23,947	$	(271)

All of the unrealized losses are attributable to increases in interest rates and not to credit deterioration. Currently, the Company believes that it is probable that it will be able to collect all amounts due according to the contractual terms of the investments. Because the decline in market value is attributable to changes in interest rates and not to credit quality and because it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2014.

Investment securities with a combined market value of $3.3 million and $2.1 million were pledged to secure public funds with the State of Virginia at June 30, 2014 and December 31, 2013, respectively. In addition, we had $2.5 million and $2.9 million in investment securities pledged to cover a relationship with our main correspondent bank at June 30, 2014 and December 31, 2013, respectively. We had $6.4 million of securities pledged to secure FHLB advances at June 30, 2014. There were no securities pledged to the FHLB at December 31, 2013.

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Stock-Based Compensation (Details 5) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
Total fair value of shares vested:	$ 26,716
Weighted-average period over which nonvested awards are expected to be recognized:	1 year 4 months 17 days
Restricted Stock [Member]
Total fair value of shares vested:	49,543
Weighted-average period over which nonvested awards are expected to be recognized:	1 year 4 months 10 days
Unamortized compensation expense	$ 346,682

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Business Combination (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Net impact to net income	$ 84	$ 416	$ 192	$ 618
Allowance for Loan and Lease Losses [Member]
Net impact to net income	0	0	0	(577)
Loans [Member]
Net impact to net income	68	351	159	1,059
Premises and equipment [Member]
Net impact to net income	2	2	4	4
Core Deposit Intangible [Member]
Net impact to net income	(9)	(9)	(18)	(18)
Time Deposits [Member]
Net impact to net income	0	49	0	104
Building Lease Obligation [Member]
Net impact to net income	$ 23	$ 23	$ 47	$ 46

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Loans, Allowance for Loan Losses and Credit Quality (Details 2) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Accretable Discount Beginning balance	$ 62	$ 476
Accretable Discount Charge-offs related to loans covered by ASC 310-30	0	0
Accretable Discount Transfer to accretable discount	0	104
Accretable Discount Discount accretion	(10)	(326)
Accretable Discount Ending balance	52	254
Nonaccretable Discount Beginning balance	61	165
Nonaccretable Discount Charge-offs related to loans covered by ASC 310-30	(56)	0
Nonaccretable Discount Transfer to accretable discount	0	(104)
Nonaccretable Discount accretion	0	0
Nonaccretable Discount Ending balance	$ 5	$ 61

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Securities (Tables)

6 Months Ended

Jun. 30, 2014

Marketable Securities [Abstract]

Available-for-sale Securities [Table Text Block]

The table below presents the amortized cost, gross unrealized gains and losses, and fair value of securities available for sale at June 30, 2014 and December 31, 2013.

	June 30, 2014
	Amortized		Gross Unrealized				Estimated
(dollars in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	3,502	$	-	$	(28)	$	3,474
Agency guaranteed mortgage-backed securities		42,463		69		(171)		42,361
Total	$	45,965	$	69	$	(199)	$	45,835

	December 31, 2013
	Amortized		Gross Unrealized				Estimated
(dollars in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	7,038	$	56	$	(53)	$	7,041
Agency guaranteed mortgage-backed securities		17,578		10		(62)		17,526
Total	$	24,616	$	66	$	(115)	$	24,567

Held-to-maturity Securities [Table Text Block]

The table below presents the carry value, gross unrealized gains and losses, and fair value of securities held to maturity at June 30, 2014 and December 31, 2013.

	June 30, 2014
	Carry		Gross Unrealized				Estimated
(dollars in thousands)	Value		Gains		Losses		Fair Value
Agency guaranteed mortgage-backed securities	$	21,839	$	141	$	(21)	$	21,959

	December 31, 2013
			Gross Unrealized				Estimated
(dollars in thousands)	Carry Value		Gains		Losses		Fair Value
Agency guaranteed mortgage-backed securities	$	14,753	$	-	$	(156)	$	14,597

Fair Value, by Balance Sheet Grouping [Table Text Block]

The amortized cost and fair value of securities available for sale as of June 30, 2014, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. They are as follows:

(Dollars in thousands)	Amortized Cost		Estimated Fair Value
Over five years within ten years	$	513	$	515
Over ten years		45,452		45,320
Total	$	45,965	$	45,835

The carrying value and fair value of securities held to maturity as of June 30, 2014, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. They are as follows:

(Dollars in thousands)	Carry Value		Estimated Fair Value
Over five years within ten years	$	3,727	$	3,776
Over ten years		18,112		18,183
Total	$	21,839	$	21,959

Schedule of Unrealized Loss on Investments [Table Text Block]

Unrealized losses on investments at June 30, 2014 and December 31, 2013 were as follows:

	June 30, 2014
	Less than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
U.S. Government agencies	$	3,474	$	(28)	$	-	$	-	$	3,474	$	(28)
Agency guaranteed mortgage-backed securities		30,660		(173)		968		(19)		31,628		(192)
Total	$	34,134	$	(201)	$	968	$	(19)	$	35,102	$	(220)

	December 31, 2013
(dollars in thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
U.S. Government agencies	$	3,697	$	(53)	$	-	$	-	$	3,697	$	(53)
Agency guaranteed mortgage-backed securities		17,336		(178)		2,914		(40)		20,250		(218)
Total	$	21,033	$	(231)	$	2,914	$	(40)	$	23,947	$	(271)