UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event Reported): November 12, 2015
CORDIA BANCORP INC.
(Exact Name of Registrant as Specified in Charter)
Virginia | 26-4700031 | |||
(State or Other Jurisdiction of Incorporation) | (I.R.S. Employer Identification Number) |
11730 Hull Street Road, Midlothian, Virginia 23112 |
(Address of principal executive offices, including zip code) |
Registrant's telephone number, including area code: (804) 763-1322
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |
||
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On November 12, 2015 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
Exhibit 99.1. Press release dated November 12, 2015
SIGNATURE
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 hereunto duly authorized.
Date: November 12, 2015 | CORDIA BANCORP INC. |
|
By: | /s/ MARK A. SEVERSON Mark A. Severson EVP/CFO |
EXHIBIT 99.1
MIDLOTHIAN, Va., Nov. 12, 2015 (GLOBE NEWSWIRE) -- Cordia Bancorp Inc. ("Cordia") (NASDAQ:BVA), parent company of Bank of Virginia, reported net income of $130,000 or $0.02 per share for the third quarter of 2015, compared to net income of $82,000, or $0.01 per share for the third quarter of 2014. For the first nine months of 2015, net income was $717,000 or $0.11 per share compared to a net loss of $472,000, or $(0.11) per share, for the same period of 2014.
Highlights
Chief Executive Officer Jack Zoeller stated, "We are fortunate to have such a talented and highly successful executive as Ed Barham join our team. We are also excited about the Company's continued growth in assets and improvement in earnings. We have achieved exceptional growth in our loan portfolio, excellent asset quality and a meaningful reduction in non-interest expense in 2015."
Balance Sheet Activity
Operating Results
Three months ended September 30, 2015 compared to the three months ended September 30, 2014
Nine months ended September 30, 2015 compared to the nine months ended September 30, 2014
About Cordia Bancorp
Cordia Bancorp Inc. is a public bank holding company founded in 2009 seeking to invest in undervalued community banks and pursue organic and strategic growth in the Mid-Atlantic banking market. Substantially all of the assets of Cordia consist of its investment in Bank of Virginia. Bank of Virginia provides retail banking services to individuals and commercial customers through six full-service banking locations in the greater Richmond market, including Chesterfield and Henrico Counties and Colonial Heights, Virginia. CordiaGrad provides student loan refinancing services through two offices in Midlothian, VA and Washington, DC.
For more information about Cordia Bancorp, Bank of Virginia and CordiaGrad, visit our websites: www.cordiabancorp.com, www.bankofva.com and www.cordiagrad.com.
DISCLAIMER
This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company's periodic filings with the Securities Exchange Commission. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements contained within this news release.
Cordia Bancorp | |||||
Consolidated Balance Sheets (unaudited) | |||||
Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | |
(Dollars in thousands, except per share data) | 2015 | 2015 | 2015 | 2014 | 2014 |
Assets | |||||
Cash and due from banks | $ 9,437 | $ 11,771 | $ 9,602 | $ 5,484 | $ 5,789 |
Fed funds sold and Interest-bearing deposits | 15,970 | 7,593 | 23,495 | 16,363 | 6,131 |
Total cash and cash equivalents | 25,407 | 19,364 | 33,097 | 21,847 | 11,920 |
Securities available for sale, at fair value | 48,721 | 58,445 | 41,411 | 53,483 | 54,581 |
Securities held to maturity, at cost | 26,281 | 27,087 | 20,132 | 20,716 | 21,263 |
Restricted securities | 2,330 | 2,331 | 2,405 | 2,092 | 1,525 |
Loans held for sale | 109 | 96 | 117 | -- | -- |
Loans held for investment: | |||||
Commercial real estate | 106,335 | 111,180 | 109,734 | 103,253 | 92,300 |
Commercial and industrial | 26,751 | 27,919 | 24,057 | 24,153 | 25,376 |
Guaranteed student loans | 56,072 | 57,900 | 61,441 | 64,870 | 67,421 |
Consumer and other | 39,607 | 28,865 | 24,521 | 20,683 | 19,221 |
Total loans held for investment | 228,765 | 225,864 | 219,753 | 212,959 | 204,318 |
Less: Allowance for loan losses | (903) | (990) | (1,102) | (1,089) | (1,226) |
Net loans held for investment | 227,862 | 224,874 | 218,651 | 211,870 | 203,092 |
Premises and equipment, net | 6,034 | 6,083 | 4,402 | 4,432 | 4,496 |
Accrued interest receivable | 1,924 | 2,033 | 1,986 | 2,040 | 1,902 |
Other real estate owned, net of valuation allowance | 1,761 | 1,769 | 1,647 | 1,641 | 1,543 |
Other assets | 7,555 | 704 | 696 | 479 | 485 |
Total assets | $ 347,984 | $ 342,786 | $ 324,544 | $ 318,600 | $ 300,807 |
Liabilities and stockholders' equity | |||||
Non-interest bearing deposits | 28,362 | 31,239 | 27,628 | 30,709 | 24,490 |
Savings and interest bearing demand deposits | 104,007 | 100,596 | 83,077 | 83,339 | 78,779 |
Time deposits | 156,939 | 152,800 | 154,920 | 151,555 | 149,679 |
Total deposits | 289,308 | 284,635 | 265,625 | 265,603 | 252,948 |
Accrued expenses and other liabilities | 553 | 464 | 1,061 | 861 | 877 |
FHLB borrowings | 30,000 | 30,000 | 30,000 | 25,000 | 20,000 |
Total liabilities | 319,861 | 315,099 | 296,686 | 291,464 | 273,825 |
Common stock - voting | 50 | 51 | 51 | 51 | 51 |
Common stock - nonvoting | 14 | 14 | 14 | 14 | 14 |
Additional paid-in-capital | 33,044 | 33,061 | 33,011 | 32,956 | 32,895 |
Retained deficit | (4,700) | (4,830) | (5,066) | (5,417) | (5,477) |
Accumulated other comprehensive loss | (285) | (609) | (152) | (468) | (501) |
Total stockholders' equity | 28,123 | 27,687 | 27,858 | 27,136 | 26,982 |
Total liabilities and stockholders' equity | $ 347,984 | $ 342,786 | $ 324,544 | $ 318,600 | $ 300,807 |
Cordia Bancorp | |||||||
Consolidated Statements of Income (unaudited) | |||||||
Three Months Ended | Nine Months Ended | ||||||
Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | Sept. 30, | Sept. 30, | |
(Dollars in thousands, except per share data) | 2015 | 2015 | 2015 | 2014 | 2014 | 2015 | 2014 |
Interest Income | |||||||
Interest and fees on loans | $ 2,294 | $ 2,327 | $ 2,183 | $ 2,247 | $ 2,275 | $ 6,804 | $ 6,676 |
Investment securities | 446 | 383 | 363 | 405 | 346 | 1,192 | 864 |
Interest on federal funds sold and deposits with banks | 9 | 5 | 7 | 6 | 4 | 21 | 19 |
Total interest income | 2,749 | 2,715 | 2,553 | 2,658 | 2,625 | 8,017 | 7,559 |
Interest Expense | |||||||
Interest on deposits | 506 | 470 | 454 | 451 | 443 | 1,430 | 1,310 |
Interest on FHLB Borrowings | 95 | 93 | 89 | 76 | 57 | 277 | 154 |
Total interest expense | 601 | 563 | 543 | 527 | 500 | 1,707 | 1,464 |
Net interest income | 2,148 | 2,152 | 2,010 | 2,131 | 2,125 | 6,310 | 6,095 |
Provision for (recovery of) loan losses | (53) | 63 | (340) | 182 | (106) | (330) | 123 |
Net interest income after provision for (recovery of) loan losses | 2,201 | 2,089 | 2,350 | 1,949 | 2,231 | 6,640 | 5,972 |
Non-interest income | |||||||
Service charges on deposit accounts | 35 | 30 | 30 | 34 | 44 | 95 | 89 |
Net gain (loss) on sale of available for sale securities | 22 | -- | 114 | 116 | (3) | 136 | 61 |
Net gain (loss) on sale of loans held for sale | 6 | 9 | 21 | (4) | -- | 36 | -- |
Other fee income | 52 | 58 | 48 | 54 | 41 | 158 | 117 |
Total non-interest income | 115 | 97 | 213 | 200 | 82 | 425 | 267 |
Non-interest expense | |||||||
Salaries and employee benefits | 1,085 | 1,082 | 1,280 | 1,094 | 1,244 | 3,447 | 3,752 |
Professional services | 108 | 100 | 84 | 104 | 92 | 292 | 323 |
Occupancy | 149 | 159 | 153 | 139 | 139 | 461 | 426 |
Reversal of occupancy fair value discount | -- | (225) | -- | -- | -- | (225) | -- |
Data processing and communications | 233 | 206 | 198 | 184 | 206 | 637 | 508 |
FDIC assessment and bank fees | 88 | 92 | 90 | 96 | 99 | 270 | 289 |
Bank franchise taxes | 49 | 49 | 49 | 23 | 23 | 147 | 79 |
Student loan servicing fees and other loan expenses | 174 | 208 | 146 | 191 | 144 | 528 | 480 |
Other real estate expenses | 26 | 45 | 6 | 18 | 6 | 77 | 28 |
Supplies and equipment | 71 | 70 | 73 | 78 | 82 | 214 | 240 |
Insurance | 20 | 19 | 20 | 42 | 40 | 59 | 125 |
Director's fees | 28 | 21 | 26 | 50 | 46 | 75 | 137 |
Marketing and business development | 64 | 31 | 18 | 21 | 15 | 113 | 30 |
Other operating expenses | 91 | 93 | 69 | 49 | 95 | 253 | 294 |
Total non-interest expense | 2,186 | 1,950 | 2,212 | 2,089 | 2,231 | 6,348 | 6,711 |
Net income (loss) | $ 130 | $ 236 | $ 351 | $ 60 | $ 82 | 717 | (472) |
Earnings (loss) per share, basic and diluted | $ 0.02 | $ 0.04 | $ 0.05 | $ 0.01 | $ 0.01 | $ 0.11 | $ (0.11) |
Weighted average shares outstanding, basic | 6,572,278 | 6,583,848 | 6,559,217 | 6,504,106 | 6,504,106 | 6,571,829 | 4,122,180 |
Weighted average shares outstanding, diluted | 6,572,278 | 6,583,848 | 6,559,217 | 6,504,106 | 6,504,106 | 6,571,829 | 4,122,180 |
Cordia Bancorp | |||||||
Consolidated Financial Highlights (unaudited) | |||||||
As of and for the Three Months Ended | Nine Months Ended | ||||||
Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | Sept. 30, | Sept. 30, | |
(Dollars in thousands, except per share data) | 2015 | 2015 | 2015 | 2014 | 2014 | 2015 | 2014 |
Results of Operations | |||||||
Interest income | $ 2,749 | $ 2,715 | $ 2,553 | $ 2,658 | $ 2,625 | $ 8,017 | $ 7,559 |
Interest expense | 601 | 563 | 543 | 527 | 500 | 1,707 | 1,464 |
Net interest income | 2,148 | 2,152 | 2,010 | 2,131 | 2,125 | 6,310 | 6,095 |
Provision for (recovery of) loan losses | (53) | 63 | (340) | 182 | (106) | (330) | 123 |
Net interest income after provision for (recovery of) loan losses | 2,201 | 2,089 | 2,350 | 1,949 | 2,231 | 6,640 | 5,972 |
Non-interest income | 115 | 97 | 213 | 200 | 82 | 425 | 267 |
Non-interest expense | 2,186 | 1,950 | 2,212 | 2,089 | 2,231 | 6,348 | 6,711 |
Net income (loss) | $ 130 | $ 236 | $ 351 | $ 60 | $ 82 | $ 717 | $ (472) |
Earnings (loss) per share, basics and diluted | $ 0.02 | $ 0.04 | $ 0.05 | $ 0.01 | $ 0.01 | $ 0.11 | $ (0.11) |
Weighted average shares outstanding, basic | 6,572,278 | 6,583,848 | 6,559,217 | 6,504,106 | 6,504,106 | 6,571,829 | 4,122,180 |
Weighted average shares outstanding, diluted | 6,572,278 | 6,583,848 | 6,559,217 | 6,504,106 | 6,504,106 | 6,571,829 | 4,122,180 |
Performance Ratios | |||||||
Return on average assets | 0.15% | 0.29% | 0.44% | 0.08% | 0.11% | 0.29% | -0.23% |
Return on average equity | 1.85% | 3.40% | 5.20% | 0.88% | 1.21% | 3.46% | -2.86% |
Return on average tangible equity | 1.85% | 3.41% | 5.22% | 0.88% | 1.21% | 3.47% | -2.88% |
Efficiency ratio | 96.60% | 86.71% | 99.51% | 89.62% | 101.09% | 94.25% | 105.49% |
Yields and Rates | |||||||
Yield on loans | 4.09% | 4.18% | 4.16% | 4.29% | 4.47% | 4.15% | 4.58% |
Yield on securities | 2.06% | 2.12% | 2.07% | 2.04% | 1.94% | 2.08% | 2.09% |
Yield on interest earning assets | 3.34% | 3.51% | 3.42% | 3.53% | 3.72% | 3.42% | 3.88% |
Cost of interest bearing deposits | 0.77% | 0.79% | 0.78% | 0.76% | 0.78% | 0.78% | 0.83% |
Cost of total deposits | 0.70% | 0.71% | 0.70% | 0.68% | 0.71% | 0.70% | 0.75% |
Cost of borrowings | 1.26% | 1.19% | 1.25% | 1.25% | 1.13% | 1.23% | 1.23% |
Cost of interest bearing liabilities | 0.82% | 0.84% | 0.83% | 0.81% | 0.81% | 0.83% | 0.86% |
Interest rate spread | 2.51% | 2.67% | 2.59% | 2.72% | 2.91% | 2.59% | 3.02% |
Net interest margin | 2.61% | 2.78% | 2.69% | 2.83% | 3.01% | 2.69% | 3.13% |
Capital | |||||||
Total equity to total assets | 8.08% | 8.08% | 8.58% | 8.52% | 8.97% | 8.08% | 8.97% |
Tangible equity to total assets | 8.06% | 8.05% | 8.56% | 8.49% | 8.94% | 8.06% | 8.94% |
Book value per share | 4.29 | 4.21 | 4.23 | 4.17 | 4.15 | 4.29 | 4.15 |
Tangible book value per share | 4.27 | 4.19 | 4.22 | 4.16 | 4.13 | 4.27 | 4.13 |
Common shares outstanding | 6,562,906 | 6,582,806 | 6,584,106 | 6,504,106 | 6,504,106 | 6,562,906 | 6,504,106 |
Average Balances | |||||||
Loans | $ 222,371 | $ 223,286 | $ 212,566 | $ 207,833 | $ 201,953 | $ 219,443 | 194,990 |
Securities | 86,089 | 72,391 | 71,198 | 78,590 | 70,848 | 76,614 | 55,280 |
Earning assets | 326,904 | 310,680 | 302,481 | 298,712 | 279,876 | 313,444 | 260,542 |
Total assets | 346,917 | 327,439 | 321,455 | 315,167 | 295,834 | 332,030 | 274,871 |
Interest bearing deposits | 260,276 | 238,715 | 235,388 | 234,953 | 223,927 | 244,881 | 211,352 |
Total deposits | 288,455 | 267,356 | 264,434 | 262,947 | 248,087 | 273,500 | 234,183 |
FHLB borrowings | 30,000 | 31,346 | 28,778 | 24,185 | 20,000 | 30,046 | 16,740 |
Interest bearing liabilities | 290,276 | 270,061 | 264,166 | 259,138 | 243,927 | 274,927 | 228,092 |
Total equity | 27,938 | 27,835 | 27,353 | 27,198 | 26,918 | 27,710 | 22,042 |
Tangible equity | 27,857 | 27,745 | 27,254 | 27,089 | 26,800 | 27,620 | 21,916 |
Asset Quality | |||||||
Net charge-offs/(recoveries) | 34 | 175 | (353) | 319 | 75 | (144) | 386 |
Net charge-off rate | 0.06% | 0.31% | -0.67% | 0.61% | 0.15% | -0.09% | 0.20% |
Non-performing loans | 1,975 | 1,918 | 2,108 | 2,221 | 1,323 | 1,975 | 1,323 |
Non-performing assets | 3,736 | 3,687 | 3,755 | 3,862 | 2,866 | 3,736 | 2,866 |
Allowance for loan losses | 903 | 990 | 1,102 | 1,089 | 1,226 | 903 | 1,226 |
Non-performing loans as a % of total loans held for investment | 0.86% | 0.85% | 0.96% | 1.04% | 0.65% | 0.86% | 0.65% |
Non-performing assets as a % of total assets | 1.07% | 1.08% | 1.16% | 1.21% | 0.95% | 1.07% | 0.95% |
Allowance for loan losses as a % of total loans held for investment | 0.39% | 0.44% | 0.50% | 0.51% | 0.60% | 0.39% | 0.60% |
Allowance for loan losses as a % of non-performing loans | 45.72% | 51.62% | 52.28% | 49.03% | 92.67% | 45.72% | 92.67% |
Cordia Bancorp | |||||||
GAAP to Non-GAAP Reconciliations (unaudited) | |||||||
The table below shows the computations of tangible equity and tangible assets and certain related ratios, all of which are considered to be non-GAAP financial measures. The tangible equity to tangible assets ratio has become a focus of some investors and management believes this ratio may assist in analyzing the Corporation's capital position, absent the effects of intangible assets. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation, or as substitute for analysis of results reported under GAAP. Because not all companies use identical calculations, the non-GAAP measures presented in the following table may not be comparable to those reported by other companies. | |||||||
As of and for the Three Months Ended | Nine Months Ended | ||||||
Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | Sept. 30, | Sept. 30, | |
(Dollars in thousands, except per share data) | 2015 | 2015 | 2015 | 2014 | 2014 | 2015 | 2014 |
Tangible Equity and Tangible Assets (Period End) | |||||||
Total shareholders' equity (GAAP) | $ 28,123 | $ 27,687 | $ 27,858 | $ 27,136 | $ 26,982 | $ 28,123 | $ 26,982 |
Less: intangible assets | 77 | 86 | 95 | 104 | 112 | 77 | 112 |
Tangible Equity (non-GAAP) | $ 28,046 | $ 27,601 | $ 27,763 | $ 27,032 | $ 26,870 | $ 28,046 | $ 26,870 |
Total assets (GAAP) | $ 347,984 | $ 342,786 | $ 324,544 | $ 318,600 | $ 300,807 | $ 347,984 | $ 300,807 |
Less: intangible assets | 77 | 86 | 95 | 104 | 112 | 77 | 112 |
Tangible assets (non-GAAP) | $ 347,907 | $ 342,700 | $ 324,449 | $ 318,496 | $ 300,695 | $ 347,907 | $ 300,695 |
-- | |||||||
Total equity to total assets (GAAP) | 8.08% | 8.08% | 8.58% | 8.52% | 8.97% | 8.08% | 8.97% |
Book value per share (GAAP) | $ 4.29 | $ 4.21 | $ 4.23 | $ 4.17 | $ 4.15 | $ 4.29 | $ 4.15 |
Tangible equity to tangible assets (non-GAAP) | 8.06% | 8.05% | 8.56% | 8.49% | 8.94% | 8.06% | 8.94% |
Tangible book value per share (non-GAAP) | $ 4.27 | $ 4.19 | $ 4.22 | $ 4.16 | $ 4.13 | $ 4.27 | $ 4.13 |
Tangible Equity and Tangible Assets (Average) | |||||||
Total shareholders' equity (GAAP) | $ 27,938 | $ 27,835 | $ 27,353 | $ 27,198 | $ 26,918 | $ 27,710 | $ 22,042 |
Less: intangible assets | 81 | 90 | 99 | 109 | 118 | 90 | 126 |
Tangible Equity (non-GAAP) | $ 27,857 | $ 27,745 | $ 27,254 | $ 27,089 | $ 26,800 | $ 27,620 | $ 21,916 |
Total assets (GAAP) | 346,917 | 327,439 | 321,455 | 315,167 | 295,834 | 332,030 | 274,871 |
Less: intangible assets | 81 | 90 | 99 | 109 | 118 | 90 | 126 |
Tangible assets (non-GAAP) | $ 346,836 | $ 327,349 | $ 321,356 | $ 315,058 | $ 295,716 | $ 331,940 | $ 274,745 |
Total equity to total assets (GAAP) | 8.05% | 8.50% | 8.51% | 8.63% | 9.10% | 8.35% | 8.02% |
Book value per share (GAAP) | $ 4.24 | $ 4.23 | $ 4.15 | $ 4.18 | $ 4.14 | $ 4.22 | $ 3.39 |
Tangible equity to tangible assets (non-GAAP) | 8.03% | 8.48% | 8.48% | 8.60% | 9.06% | 8.32% | 7.98% |
Tangible book value per share (non-GAAP) | $ 4.23 | $ 4.21 | $ 4.14 | $ 4.16 | $ 4.12 | $ 4.21 | $ 3.37 |
CONTACT: Mark Severson, EVP & CFO, Cordia Bancorp Inc. 804-763-1322