EXHIBIT 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
Contact:
Jeffrey W. Farrar
Executive Vice President and CFO
(540) 829-1603
farrarj@vfgi.net
VIRGINIA FINANCIAL GROUP, INC. ANNOUNCES RECORD FOURTH QUARTER AND ANNUAL EARNINGS
Culpeper, VA-Virginia Financial Group, Inc. (NASDAQ: VFGI) today reported record fourth quarter 2005 earnings of $5.0 million, an increase of 23.1% compared to earnings of $4.1 million for the fourth quarter of 2004. Net income per diluted share was $.69, up 23.2% compared to $.56 for the same period in 2004. VFG’S earnings for the fourth quarter of 2005 produced an annualized return on average assets (ROA) of 1.31% and an annualized return on average equity (ROE) of 14.59%, compared to prior year ratios of 1.11% and 12.84%, respectively. For the twelve months of 2005, net income was a record $18.2 million, up 19.8% from $15.2 million for the same period in 2004. Net income per diluted share was $2.52, up 19.4% from $2.11 for the twelve months of 2004. ROA and ROE for the twelve month period was 1.23% and 13.86%, respectively, compared to 1.07% and 12.40% for the same period in 2004.
O.R. Barham, Jr., President and CEO, commented, “We are quite pleased with our financial results for 2005, making progress on many fronts and achieving a record level of earnings for the Company. The fourth quarter continued to show positive trends with margin expansion, excellent asset quality, improvement in efficiency and solid contribution from our mortgage division. We again saw our efficiency ratio drop to its lowest level in several years, and our return on average equity approached 15% for the fourth quarter. Balance sheet growth could frankly have been better, and we are seeing an acceleration of loan pay-off activity as increased real estate valuations have shortened the duration of many of our commercial customer’s anticipated holding periods. We see this trend continuing in the first quarter of 2006. Nevertheless, we are excited about our plans for 2006 and look forward to executing our strategies with optimism and enthusiasm.”
REVENUE GROWTH
Total revenue, comprised of net interest income and noninterest income, was $19.0 million for the fourth quarter of 2005, an increase of $2.3 million or 13.4% over $16.8 million in 2004. The largest component, net interest income, amounted to $15.2 million for the fourth quarter, up $1.9 million or 14.7% compared
with $13.3 million for the same quarter in 2004. For the twelve months ended December 31, 2005, net interest income was $56.8 million, an increase of $5.4 million or 10.4% from $51.5 million for the same period in 2004. Improvements in the growth and mix of average earning assets, coupled with net interest margin expansion, were primarily contributors to this growth. The net interest margin for the fourth quarter of 2005 was 4.40%, up four basis points sequentially compared to 4.36% for the third quarter of 2005, and up thirty-one basis points when compared to 4.09% for the fourth quarter of 2004. The net interest margin for the twelve months ended December 31, 2005 was 4.29%, compared to 4.04% for the same period in 2004.
Total noninterest income was $3.8 million for the fourth quarter of 2005, an increase of $304 thousand or 8.7% compared to $3.5 million for the fourth quarter of 2004. Trust and brokerage fee income rose to $951 thousand for the quarter, an increase of $134 thousand or 16.4% over the same period in 2004. VFG experienced higher revenues and profitability from mortgage operations, with gross mortgage banking fees amounting to $910 thousand, an increase of $462 thousand or 103.1% when compared to $448 thousand for the fourth quarter of 2004, but down sequentially $112 thousand or 11.0% from the third quarter of 2005.
NONINTEREST EXPENSE AND EFFICIENCY
Noninterest expense for the fourth quarter of 2005 amounted to $11.3 million, up $1.1 million or 10.4% from $10.2 million for the same period in 2004, and up sequentially $185 thousand or 1.7% from the third quarter of 2005. For the twelve month period ended December 31, 2005, noninterest expense amounted to $43.7 million, an increase of $2.7 million or 6.5% over $41.0 million for the same period in 2004. As noted in our previous quarter, expenses accelerated in the fourth quarter due to increased costs associated with sales and credit training initiatives and incentive compensation related costs. The modest increase for the year is attributable to a fairly stable full-time equivalent employee count, no significant expansion activities during the period, and general improvements in overall efficiency. VFG’s efficiency ratio was 57.8% for the quarter, compared to 59.4% for the same quarter in 2004. For the twelve month period ended December 31, 2005, the efficiency ratio was 59.1%, compared to 61.4% for the same period in 2004.
BALANCE SHEET
Average loans for the fourth quarter were $1.15 billion, up $108.2 million or 10.4% from the fourth quarter of 2004, and average total assets were $1.52 billion, up $60 million or 4.1% from the fourth quarter of 2004. Loans receivable decreased $22.0 million or 1.9% growth for the fourth quarter of 2005 on increased pay-off activity. The securities portfolio increased $28.3 million or 12.9% to $247.7 million.
Average deposits for the fourth quarter were $1.27 billion, up $6 million or .5% from the fourth quarter of 2004. Excluding the impact of the sale of branches in Tazewell, Virginia during first quarter 2005, the growth rate was 2.6%. Sequentially, deposits decreased $13.3 million or 1.1% to $1.26 billion from third quarter 2005. While certificate of deposit balances were up $17.6 million or 3.5% for the quarter, VFG experienced decreases in each of its demand deposit categories. Non-interest bearing demand deposits were down $7.2 million or 2.8% for the quarter, due to lower balances associated with real estate closings, but are up $11.0 million or 4.6% when compared to a year ago.
At December 31, 2005 VFG had total assets of $1.51 billion, compared to $1.45 billion at December 31, 2004. Shareholder’s equity at December 31, 2005 was $136.1 million, an increase of $9.0 million or 7.1% compared to December 31, 2004. Shareholder’s equity represented 9.04% of total assets at December 31, 2005, while tangible equity capital represented 7.92% of tangible assets at December 31, 2005. Book value at December 31, 2005 was $18.99 per share, compared to $17.75 at December 31, 2004.
ASSET QUALITY
Asset quality remains strong, with VFG’s ratio of non-performing assets as a percentage of total assets amounting to .12% as of December 31, 2005, compared to ..28% at December 31, 2004 and .11% at September 30, 2005. Net (recoveries) charge-offs as a percentage of average loans receivable amounted to (.003)% for the quarter and .01% for the twelve month period ended December 31, 2005, compared to .02% and .06% for the same periods in 2004. At December 31, 2005, the allowance for loan losses was approximately seven times the level of non-performing assets, while the allowance as a percentage of total loans amounted to 1.19%. VFG decreased its provision for by loan losses by $164 thousand or 28.2%, from $581 thousand for the three months ended December 31, 2004 compared to $417 thousand for the three months ended December 31, 2005. It also decreased its provision by $86 thousand when compared to the provision recorded for the third quarter of 2005, consistent with charge-off experience and general improvement in asset quality during the period.
ABOUT VFG
VFG is the holding company for Planters Bank & Trust Company of Virginia – in Staunton; Second Bank & Trust – in Culpeper; Virginia Heartland Bank – in Fredericksburg and Virginia Commonwealth Trust Company – in Culpeper. The Company is a traditional community banking provider, offering a full range of business and consumer banking services including trust and asset management service via its trust company affiliate. The organization maintains a network of thirty-six branches serving Central and Southwest Virginia, with a thirty seventh branch scheduled to open in Lynchburg next month. It also maintains five trust and investment service offices in its markets, and loan production offices located in Charlottesville and Lynchburg.
NON-GAAP FINANCIAL MEASURES
This report refers to the efficiency ratio, which is computed by dividing non-interest expense by the sum of net interest income on a tax equivalent basis and non-interest income excluding gain on sale of securities. This is a non-GAAP financial measure that we believe provides investors with important information regarding our operational efficiency. Such information is not in accordance with generally accepted accounting principles (GAAP) and should not be construed as such. Management believes such financial information is meaningful to the reader in understanding operating performance, but cautions that such information not be viewed as a substitute for GAAP. VFG, in referring to its net income, is referring to income under generally accepted accounting principles, or “GAAP”.
FORWARD LOOKING STATEMENTS
In addition to historical information, this press release contains forward-looking statements. The forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results, or those anticipated. When we use words such as “believes”, “expects”, “anticipates” or similar expressions, we are making forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date thereof. VFG wishes to caution the reader that factors, such as those listed below, in some cases have affected and could affect VFG’s actual results, causing actual results to differ materially from those in any forward looking statement. These factors include: (i) expected cost savings from VFG’s acquisitions and dispositions, (ii) competitive pressure in the banking industry or in VFG’s markets may increase significantly, (iii) changes in the interest rate environment may reduce margins, (iv) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, credit quality deterioration, (v) changes may occur in banking legislation and regulation, (vi) changes may occur in general business conditions and (vii) changes may occur in the securities markets. Please refer to VFG’s filings with the Securities and Exchange Commission for additional information, which may be accessed atwww.vfgi.net.
QUARTERLY PERFORMANCE SUMMARY
Virginia Financial Group, Inc. (NASDAQ: VFGI)
(Dollars in thousands, except per share data)
For the Three Months Ended | Percent Increase (Decrease) | ||||||||||
12/31/2005 | 12/31/2004 | ||||||||||
INCOME STATEMENT | |||||||||||
Interest income - taxable equivalent | $ | 22,324 | $ | 18,972 | 17.67 | % | |||||
Interest expense | 6,687 | 5,272 | 26.84 | % | |||||||
Net interest income - taxable equivalent | 15,637 | 13,700 | 14.14 | % | |||||||
Less: taxable equivalent adjustment | 422 | 434 | -2.76 | % | |||||||
Net interest income | 15,215 | 13,266 | 14.69 | % | |||||||
Provision for loan and lease losses | 417 | 581 | -28.23 | % | |||||||
Net interest income after provision for loan and lease losses | 14,798 | 12,685 | 16.66 | % | |||||||
Noninterest income | 3,800 | 3,496 | 8.70 | % | |||||||
Noninterest expense | 11,279 | 10,220 | 10.36 | % | |||||||
Provision for income taxes | 2,307 | 1,889 | 22.13 | % | |||||||
Net income | $ | 5,012 | $ | 4,072 | 23.08 | % | |||||
PER SHARE DATA | |||||||||||
Basic earnings | $ | 0.70 | $ | 0.57 | 22.81 | % | |||||
Diluted earnings | $ | 0.69 | $ | 0.56 | 23.21 | % | |||||
Shares outstanding | 7,172,734 | 7,161,499 | |||||||||
Weighted average shares - | |||||||||||
Basic | 7,171,232 | 7,160,782 | |||||||||
Diluted | 7,224,963 | 7,208,699 | |||||||||
Dividends paid on common shares | $ | 0.22 | $ | 0.20 | |||||||
PERFORMANCE RATIOS | |||||||||||
Return on average assets | 1.31 | % | 1.11 | % | 18.02 | % | |||||
Return on average equity | 14.59 | % | 12.84 | % | 13.63 | % | |||||
Return on average realized equity (A) | 14.46 | % | 13.13 | % | 10.13 | % | |||||
Net interest margin (taxable equivalent) | 4.40 | % | 4.09 | % | 7.58 | % | |||||
Efficiency (taxable equivalent) (B) | 57.78 | % | 59.39 | % | -2.71 | % | |||||
ASSET QUALITY | |||||||||||
Allowance for loan losses | |||||||||||
Beginning of period | $ | 13,128 | $ | 11,300 | |||||||
Provision for loan losses | 417 | 581 | |||||||||
Charge offs | (49 | ) | (264 | ) | |||||||
Recoveries | 85 | 89 | |||||||||
End of period | $ | 13,581 | $ | 11,706 |
NOTES: Applicable ratios are annualized
(A) | Excludes the effect on average stockholders’ equity of unrealized gains (losses) that result from changes in market values of securities and other comprehensive pension expense. |
(B) | Excludes securities gains (losses) and foreclosed property expense for all periods. |
QUARTERLY PERFORMANCE SUMMARY
Virginia Financial Group, Inc. (NASDAQ: VFGI)
(Dollars in thousands, except per share data)
For the Twelve Months Ended | Percent (Decrease) | ||||||||||
12/31/2005 | 12/31/2004 | ||||||||||
INCOME STATEMENT | |||||||||||
Interest income - taxable equivalent | $ | 82,326 | $ | 72,889 | 12.95 | % | |||||
Interest expense | 23,861 | 19,628 | 21.57 | % | |||||||
Net interest income - taxable equivalent | 58,465 | 53,261 | 9.77 | % | |||||||
Less: taxable equivalent adjustment | 1,620 | 1,780 | -8.99 | % | |||||||
Net interest income | 56,845 | 51,481 | 10.42 | % | |||||||
Provision for loan and lease losses | 2,012 | 2,534 | -20.60 | % | |||||||
Net interest income after provision for loan and lease losses | 54,833 | 48,947 | 12.03 | % | |||||||
Noninterest income | 15,443 | 14,544 | 6.18 | % | |||||||
Noninterest expense | 43,702 | 41,723 | 4.74 | % | |||||||
Provision for income taxes | 8,358 | 6,565 | 27.31 | % | |||||||
Net income | $ | 18,216 | $ | 15,203 | 19.82 | % | |||||
PER SHARE DATA | |||||||||||
Basic earnings | $ | 2.54 | $ | 2.12 | 19.81 | % | |||||
Diluted earnings | $ | 2.52 | $ | 2.11 | 19.43 | % | |||||
Shares outstanding | 7,172,734 | 7,161,499 | |||||||||
Weighted average shares - | |||||||||||
Basic | 7,168,027 | 7,158,574 | |||||||||
Diluted | 7,217,368 | 7,201,750 | |||||||||
Dividends paid on common shares | $ | 0.84 | $ | 0.78 | |||||||
PERFORMANCE RATIOS | |||||||||||
Return on average assets | 1.23 | % | 1.07 | % | 14.95 | % | |||||
Return on average equity | 13.86 | % | 12.40 | % | 11.77 | % | |||||
Return on average realized equity (A) | 13.88 | % | 12.70 | % | 9.29 | % | |||||
Net interest margin (taxable equivalent) | 4.29 | % | 4.09 | % | 4.89 | % | |||||
Efficiency (taxable equivalent) (B) | 59.15 | % | 61.44 | % | -3.73 | % | |||||
ASSET QUALITY | |||||||||||
Allowance for loan losses | |||||||||||
Beginning of period | $ | 11,706 | $ | 9,743 | |||||||
Provision for loan losses | 2,012 | 2,534 | |||||||||
Charge offs | (452 | ) | (802 | ) | |||||||
Recoveries | 315 | 231 | |||||||||
End of period | $ | 13,581 | $ | 11,706 | |||||||
Non-performing assets: | |||||||||||
Non-accrual loans | $ | 1,604 | $ | 2,552 | |||||||
Loans 90+ days past due and still accruing | — | — | |||||||||
Other real estate owned | 75 | 5 | |||||||||
Troubled debt restructurings | 154 | 1,451 | |||||||||
Total non-performing assets | $ | 1,833 | $ | 4,008 | |||||||
to total assets: | 0.12 | % | 0.28 | % | |||||||
to total loans plus OREO: | 0.16 | % | 0.38 | % | |||||||
Allowance for loan losses to total loans | 1.19 | % | 1.10 | % | |||||||
Net charge-offs (recoveries) | $ | 137 | $ | 571 | |||||||
Net charge-offs to average loans outstanding | 0.01 | % | 0.06 | % |
NOTES: Applicable ratios are annualized
(A) | Excludes the effect on average stockholders’ equity of unrealized gains (losses) that result from changes in market values of securities and other comprehensive pension expense. |
(B) | Excludes securities gains (losses) and foreclosed property expense for all periods. |
QUARTERLY PERFORMANCE SUMMARY
Virginia Financial Group, Inc. (NASDAQ: VFGI)
(Dollars in thousands, except per share data)
12/31/2005 | 12/31/2004 | Percent Increase (Decrease) | |||||||||
SELECTED BALANCE SHEET DATA | |||||||||||
End of period balances | |||||||||||
Cash and cash equivalents | $ | 48,017 | $ | 39,326 | 22.10 | % | |||||
Securities available for sale | 243,364 | 286,309 | -15.00 | % | |||||||
Securities held to maturity | 4,287 | 5,849 | -26.71 | % | |||||||
Total securities | 247,651 | 292,158 | -15.23 | % | |||||||
Real estate - construction | 115,944 | 116,888 | -0.81 | % | |||||||
Real estate - 1-4 family residential | 327,618 | 293,859 | 11.49 | % | |||||||
Real estate - commercial and multifamily | 576,497 | 507,707 | 13.55 | % | |||||||
Commercial, financial and agricultural | 78,110 | 94,887 | -17.68 | % | |||||||
Consumer loans | 40,876 | 44,379 | -7.89 | % | |||||||
All other loans | 3,485 | 3,448 | 1.07 | % | |||||||
Total loans | 1,142,530 | 1,061,168 | 7.67 | % | |||||||
Deferred loan costs | 546 | 407 | 34.15 | % | |||||||
Allowance for loan losses | (13,581 | ) | (11,706 | ) | 16.02 | % | |||||
Net loans | 1,129,495 | 1,049,869 | 7.58 | % | |||||||
Other assets | 80,021 | 68,255 | 17.24 | % | |||||||
Total assets | 1,505,184 | 1,449,608 | 3.83 | % | |||||||
Noninterest bearing deposits | 249,775 | 238,735 | 4.62 | % | |||||||
Money market & interest checking | 360,656 | 379,793 | -5.04 | % | |||||||
Savings | 124,297 | 139,018 | -10.59 | % | |||||||
CD’s and other time deposits | 520,781 | 499,618 | 4.24 | % | |||||||
Total deposits | 1,255,509 | 1,257,164 | -0.13 | % | |||||||
Short-term borrowed funds | 45,865 | 21,970 | 108.76 | % | |||||||
Trust preferred capital notes | 20,619 | 20,619 | 0.00 | % | |||||||
Federal Home Loan Bank advances | 35,000 | 14,060 | 148.93 | % | |||||||
Other liabilities | 12,086 | 8,706 | 38.82 | % | |||||||
Total liabilities | 1,369,079 | 1,322,519 | 3.52 | % | |||||||
Total stockholders’ equity | $ | 136,105 | $ | 127,090 | 7.09 | % | |||||
Accumulated comprehensive income (loss) | $ | (2,013 | ) | $ | 1,639 | -222.82 | % | ||||
For the Twelve Months Ended | Percent (Decrease) | ||||||||||
12/31/2005 | 12/31/2004 | ||||||||||
Average balances | |||||||||||
Total assets | $ | 1,477,718 | $ | 1,423,204 | 3.83 | % | |||||
Total stockholders’ equity | $ | 131,437 | $ | 122,650 | 7.16 | % | |||||
For the Three Months Ended | |||||||||||
12/31/2005 | 12/31/2004 | ||||||||||
Total assets | $ | 1,515,012 | $ | 1,454,842 | 4.14 | % | |||||
Total stockholders’ equity | $ | 136,282 | $ | 126,157 | 8.03 | % |
QUARTERLY PERFORMANCE SUMMARY
Virginia Financial Group, Inc. (NASDAQ: VFGI)
(Dollars in thousands)
For the Three Months Ended | Percent (Decrease) | ||||||||||
12/31/2005 | 12/31/2004 | ||||||||||
Interest Income | |||||||||||
Interest and fees on loans | $ | 19,211 | $ | 15,676 | 22.55 | % | |||||
Interest on deposits in other banks | 30 | 1 | — | ||||||||
Interest and dividends on securities: | |||||||||||
Taxable | 1,493 | 1,911 | -21.87 | % | |||||||
Tax-exempt | 695 | 696 | -0.14 | % | |||||||
Dividends | 136 | 134 | 1.49 | % | |||||||
Interest income on federal funds sold | 338 | 120 | 181.67 | % | |||||||
Total interest income | 21,903 | 18,538 | 18.15 | % | |||||||
Interest Expense | |||||||||||
Interest on deposits | 5,593 | 4,766 | 17.35 | % | |||||||
Interest on federal funds repurchased and securities sold under agreements to repurchase | 145 | 77 | 88.31 | % | |||||||
Interest on other short-term borrowings | 179 | 2 | — | ||||||||
Interest on Federal Home Loan Bank advances | 415 | 186 | 123.12 | % | |||||||
Interest on trust preferred capital notes | 356 | 241 | 47.72 | % | |||||||
Total interest expense | 6,688 | 5,272 | 26.86 | % | |||||||
Net interest income | 15,215 | 13,266 | 14.69 | % | |||||||
Provision for loan losses | 417 | 581 | -28.23 | % | |||||||
Net interest income after provision for loan losses | 14,798 | 12,685 | 16.66 | % | |||||||
Noninterest Income | |||||||||||
Retail banking fees | 1,735 | 1,912 | -9.26 | % | |||||||
Commissions and fees from fiduciary activities | 747 | 668 | 11.83 | % | |||||||
Brokerage fee income | 204 | 149 | 36.91 | % | |||||||
Other operating income | 266 | 330 | -19.39 | % | |||||||
Gains (losses) on sale of fixed assets | (62 | ) | 6 | — | |||||||
Gains (losses) on securities available for sale | — | 3 | — | ||||||||
Gains (losses) on sale of other real estate owned | — | (20 | ) | — | |||||||
Gains (losses) on sale of branches | — | — | — | ||||||||
Gain on sale of mortgage loans | 910 | 448 | 103.13 | % | |||||||
Total noninterest income | 3,800 | 3,496 | 8.70 | % | |||||||
Noninterest Expense | |||||||||||
Compensation and employee benefits | 6,732 | 5,747 | 17.14 | % | |||||||
Net occupancy expense | 601 | 648 | -7.25 | % | |||||||
Supplies and equipment expenses | 929 | 1,109 | -16.23 | % | |||||||
Amortization-intangible assets | 158 | 174 | -9.20 | % | |||||||
Marketing | 133 | 145 | -8.28 | % | |||||||
State franchise taxes | 208 | 144 | 44.44 | % | |||||||
Data processing | 447 | 373 | 19.84 | % | |||||||
Telecommunications | 248 | 261 | -4.98 | % | |||||||
Professional fees | 174 | 209 | -16.75 | % | |||||||
Other operating expenses | 1,649 | 1,410 | 16.95 | % | |||||||
Total noninterest expense | 11,279 | 10,220 | 10.36 | % | |||||||
Income before income taxes | 7,319 | 5,961 | 22.78 | % | |||||||
Income tax expense | 2,307 | 1,889 | 22.13 | % | |||||||
Net income | $ | 5,012 | $ | 4,072 | 23.08 | % |
QUARTERLY PERFORMANCE SUMMARY
Virginia Financial Group, Inc. (NASDAQ: VFGI)
(Dollars in thousands)
For the Twelve Months Ended | Percent (Decrease) | ||||||||||
12/31/2005 | 12/31/2004 | ||||||||||
Interest Income | |||||||||||
Interest and fees on loans | $ | 70,712 | $ | 58,232 | 21.43 | % | |||||
Interest on deposits in other banks | 41 | 4 | — | ||||||||
Interest and dividends on securities: | |||||||||||
Taxable | 6,447 | 8,770 | -26.49 | % | |||||||
Tax-exempt | 2,645 | 2,854 | -7.32 | % | |||||||
Dividends | 397 | 390 | 1.79 | % | |||||||
Interest income on federal funds sold | 464 | 152 | 205.26 | % | |||||||
Total interest income | 80,706 | 70,402 | 14.64 | % | |||||||
Interest Expense | |||||||||||
Interest on deposits | 20,408 | 17,859 | 14.27 | % | |||||||
Interest on federal funds repurchased and securities sold under agreements to repurchase | 568 | 238 | 138.66 | % | |||||||
Interest on other short-term borrowings | 468 | 143 | 227.27 | % | |||||||
Interest on Federal Home Loan Bank advances | 1,157 | 705 | 64.11 | % | |||||||
Interest on trust preferred capital notes | 1,260 | 683 | 84.48 | % | |||||||
Total interest expense | 23,861 | 19,628 | 21.57 | % | |||||||
Net interest income | 56,845 | 50,774 | 11.96 | % | |||||||
Provision for loan losses | 2,012 | 2,534 | -20.60 | % | |||||||
Net interest income after provision for loan losses | 54,833 | 48,240 | 13.67 | % | |||||||
Noninterest Income | |||||||||||
Retail banking fees | 6,954 | 7,522 | -7.55 | % | |||||||
Commissions and fees from fiduciary activities | 2,954 | 2,804 | 5.35 | % | |||||||
Brokerage fee income | 723 | 663 | 9.05 | % | |||||||
Other operating income | 1,065 | 1,102 | -3.36 | % | |||||||
Gains (losses) on sale of fixed assets | (61 | ) | 6 | — | |||||||
Gains (losses) on securities available for sale | 296 | 3 | — | ||||||||
Gains (losses) on sale of other real estate owned | — | (20 | ) | — | |||||||
Gains (losses) on sale of branches | 421 | — | — | ||||||||
Gain on sale of mortgage loans | 3,091 | 2,464 | 25.45 | % | |||||||
Total noninterest income | 15,443 | 14,544 | 6.18 | % | |||||||
Noninterest Expense | |||||||||||
Compensation and employee benefits | 25,284 | 22,669 | 11.54 | % | |||||||
Net occupancy expense | 2,888 | 2,721 | 6.14 | % | |||||||
Supplies and equipment expenses | 4,056 | 4,333 | -6.39 | % | |||||||
Amortization-intangible assets | 643 | 694 | -7.35 | % | |||||||
Marketing | 887 | 636 | 39.47 | % | |||||||
State franchise taxes | 870 | 599 | 45.24 | % | |||||||
Data processing | 1,389 | 1,464 | -5.12 | % | |||||||
Telecommunications | 1,017 | 1,055 | -3.60 | % | |||||||
Professional fees | 804 | 922 | -12.80 | % | |||||||
Other operating expenses | 5,864 | 5,923 | -1.00 | % | |||||||
Total noninterest expense | 43,702 | 41,016 | 6.55 | % | |||||||
Income before income taxes | 26,574 | 21,768 | 22.08 | % | |||||||
Income tax expense | 8,358 | 6,565 | 27.31 | % | |||||||
Net income | $ | 18,216 | $ | 15,203 | 19.82 | % |
VIRGINIA FINANCIAL GROUP INC. | ||||||
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES | ||||||
THREE MONTHS ENDED DECEMMBER 31, 2005 AND 2004 | ||||||
(Dollars in thousands) |
Three months ended December 31, | ||||||||||||||||||
2005 | 2004 | |||||||||||||||||
Dollars in thousands | Average Balance | Interest Inc/Exp | Average Rates | Average Balance | Interest Inc/Exp | Average Rates | ||||||||||||
Assets | ||||||||||||||||||
Loans receivable, net | $ | 1,146,423 | $ | 19,258 | 6.66 | % | $ | 1,038,215 | $ | 15,731 | 6.03 | % | ||||||
Investment securities | ||||||||||||||||||
Taxable | 159,606 | 1,628 | 4.05 | % | 205,682 | 2,036 | 3.94 | % | ||||||||||
Tax exempt | 67,135 | 1,070 | 6.32 | % | 63,703 | 1,084 | 6.77 | % | ||||||||||
Total investments | 226,741 | 2,698 | 4.72 | % | 269,385 | 3,120 | 4.61 | % | ||||||||||
Interest bearing deposits | 3,135 | 30 | 3.80 | % | 289 | 1 | 1.03 | % | ||||||||||
Federal funds sold | 32,408 | 338 | 4.14 | % | 25,984 | 120 | 0.92 | % | ||||||||||
262,284 | 3,066 | 4.64 | % | 295,658 | 3,241 | 4.36 | % | |||||||||||
Total earning assets | 1,408,707 | 22,324 | 6.2872 | % | 1,333,873 | 18,972 | 5.66 | % | ||||||||||
Total nonearning assets | 106,305 | 120,969 | ||||||||||||||||
Total assets | $ | 1,515,012 | $ | 1,454,842 | ||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||
Interest checking | $ | 187,417 | $ | 206 | 0.44 | % | $ | 198,527 | $ | 196 | 0.39 | % | ||||||
Money market | 189,142 | 781 | 1.64 | % | 183,725 | 454 | 0.98 | % | ||||||||||
Savings | 126,811 | 215 | 0.67 | % | 141,549 | 231 | 0.65 | % | ||||||||||
Time deposits: | ||||||||||||||||||
Less than $100,000 | 362,229 | 3,019 | 3.31 | % | 370,884 | 2,806 | 3.01 | % | ||||||||||
$100,000 and more | 147,962 | 1,372 | 3.68 | % | 126,407 | 1,079 | 3.40 | % | ||||||||||
Total interest-bearing deposits | 1,013,561 | 5,593 | 2.19 | % | 1,021,092 | 4,766 | 1.86 | % | ||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 16,209 | 145 | 3.55 | % | 20,073 | 77 | 1.53 | % | ||||||||||
Trust preferred capital notes | 20,619 | 356 | 6.85 | % | 20,000 | 241 | 4.79 | % | ||||||||||
Other short term borrowings | 25,337 | 178 | 2.79 | % | 188 | 2 | 4.23 | % | ||||||||||
Federal Home Loan Bank advances | 35,000 | 415 | 4.70 | % | 14,076 | 186 | 5.26 | % | ||||||||||
97,165 | 1,094 | 4.47 | % | 54,337 | 506 | 3.70 | % | |||||||||||
Total interest-bearing liabilities | 1,110,726 | 6,687 | 2.3895 | % | 1,075,429 | 5,272 | 1.95 | % | ||||||||||
Total noninterest-bearing liabilities | 268,004 | 253,256 | ||||||||||||||||
Total liabilities | 1,378,730 | 1,328,685 | ||||||||||||||||
Stockholders’ equity | 136,282 | 126,157 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,515,012 | $ | 1,454,842 | ||||||||||||||
Net interest income (tax equivalent) | $ | 15,637 | $ | 13,700 | ||||||||||||||
Average interest rate spread | 3.90 | % | 3.71 | % | ||||||||||||||
Interest expense as percentage of average earning assets | 1.88 | % | 1.57 | % | ||||||||||||||
Net interest margin | 4.40 | % | 4.09 | % |
VIRGINIA FINANCIAL GROUP INC. | ||||||
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES | ||||||
TWELVE MONTHS ENDED DECEMBER 31, 2005 AND 2004 | ||||||
(Dollars in thousands) |
Twelve months ended December 31, | ||||||||||||||||||
2005 | 2004 | |||||||||||||||||
Dollars in thousands | Average Balance | Interest Inc/Exp | Average Rates | Average Balance | Interest Inc/Exp | Average Rates | ||||||||||||
Assets | ||||||||||||||||||
Loans receivable, net | $ | 1,113,206 | $ | 70,908 | 6.37 | % | $ | 991,911 | $ | 58,463 | 5.89 | % | ||||||
Investment securities | ||||||||||||||||||
Taxable | 173,668 | 6,844 | 3.94 | % | 233,429 | 9,160 | 3.92 | % | ||||||||||
Tax exempt | 63,029 | 4,069 | 6.46 | % | 66,610 | 4,403 | 6.61 | % | ||||||||||
Total investments | 236,697 | 10,913 | 4.61 | % | 300,039 | 13,563 | 4.52 | % | ||||||||||
Interest bearing deposits | 1,256 | 41 | 3.26 | % | 416 | 4 | 0.96 | % | ||||||||||
Federal funds sold | 12,968 | 464 | 3.58 | % | 9,044 | 152 | 1.68 | % | ||||||||||
250,921 | 11,418 | 4.55 | % | 309,499 | 13,719 | 4.43 | % | |||||||||||
Total earning assets | 1,364,127 | 82,326 | 6.04 | % | 1,301,410 | 72,182 | 5.55 | % | ||||||||||
Total nonearning assets | 113,591 | 121,794 | ||||||||||||||||
Total assets | $ | 1,477,718 | $ | 1,423,204 | ||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||
Interest checking | $ | 192,987 | $ | 807 | 0.42 | % | $ | 195,131 | $ | 950 | 0.49 | % | ||||||
Money market | 176,606 | 2,325 | 1.32 | % | 176,386 | 1,649 | 0.94 | % | ||||||||||
Savings | 131,420 | 880 | 0.67 | % | 140,925 | 948 | 0.67 | % | ||||||||||
Time deposits: | ||||||||||||||||||
Less than $100,000 | 364,645 | 11,473 | 3.15 | % | 370,746 | 10,233 | 2.76 | % | ||||||||||
$100,000 and more | 137,197 | 4,923 | 3.59 | % | 121,135 | 4,079 | 3.37 | % | ||||||||||
Total interest-bearing deposits | 1,002,855 | 20,408 | 2.03 | % | 1,004,323 | 17,859 | 1.78 | % | ||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 21,189 | 568 | 2.68 | % | 23,801 | 238 | 1.00 | % | ||||||||||
Trust preferred capital notes | 20,619 | 1,260 | 6.11 | % | 16,281 | 683 | 4.20 | % | ||||||||||
Other short term borrowings | 16,486 | 468 | 2.84 | % | 10,277 | 143 | 1.39 | % | ||||||||||
Federal Home Loan Bank advances | 25,212 | 1,157 | 4.59 | % | 12,960 | 705 | 5.44 | % | ||||||||||
83,506 | 3,453 | 4.14 | % | 63,319 | 1,769 | 2.79 | % | |||||||||||
Total interest-bearing liabilities | 1,086,361 | 23,861 | 2.19 | % | 1,067,642 | 19,628 | 1.84 | % | ||||||||||
Total noninterest-bearing liabilities | 259,920 | 232,912 | ||||||||||||||||
Total liabilities | 1,346,281 | 1,300,554 | ||||||||||||||||
Stockholders’ equity | 131,437 | 122,650 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,477,718 | $ | 1,423,204 | ||||||||||||||
Net interest income (tax equivalent) | $ | 58,465 | $ | 52,554 | ||||||||||||||
Average interest rate spread | 3.85 | % | 3.71 | % | ||||||||||||||
Interest expense as percentage of average earning assets | 1.75 | % | 1.51 | % | ||||||||||||||
Net interest margin | 4.29 | % | 4.04 | % |