Central Virginia Bankshares (CVBK) Inactive
Filed: 4 Nov 03, 12:00am
CENTRAL VIRGINIA BANKSHARES REPORTS THIRD QUARTER EARNINGS, UP 31%.
POWHATAN, VA., October 27, 2003 / PR Newswire / - Central Virginia Bankshares, Inc. (NASDAQ: CVBK) reported third quarter 2003 earnings of $ 1,020,274 an increase of $242,818 or 31 percent when compared to $ 777,456 in the third quarter of 2002. On a per share basis, basic earnings were $ 0.49 per share an increase of 29 percent versus $ 0.38 per share in the third quarter of the prior year. On a fully diluted basis, net income per share was $0.47 an improvement of 33 percent compared to $0.35 in the comparable period of the prior year. For the third quarter, the return on average assets was 1.21 percent versus the prior year’s 1.15 percent. The return on average shareholders equity was 15.08 percent compared to 13.59 percent in last year’s third quarter. Shareholders equity, at quarter end, stood at $26.8 million, an increase of $3 million versus the third quarter of 2002. Accordingly, the book value of a share of common stock improved to $12.81 compared to $11.54 in 2002.
For the nine months year to date, net income was $ 2,790,612, an increase of 24 percent or $ 531,449 when compared to the prior year’s total of $2,259,163. Year to date, basic earnings per share were $ 1.35 versus $ 1.10, and on a fully diluted basis were $ 1.29 versus $ 1.05 per share, both representing increases of 22 percent.
The fully tax equivalent net interest income for the third quarter was $ 3.06 million, an increase of 18 percent compared to $ 2.60 million in the third quarter of 2002. The tax equivalent net interest margin was 3.92 percent for the quarter compared to 4.18 percent in third quarter 2002. For the year to date, the tax equivalent margin was 4.15 percent versus 4.14 percent in the prior year.
Non-interest income continues to grow, amounting to $ 838,629 for the quarter an increase of 16 percent over the prior year’s third quarter total of $ 724,656. Year to date, non-interest income is up over 17 percent compared to the prior year. The improvement is attributable to substantial increases in commissions from the sales of retail non-deposit investment products, and profits from secondary market mortgage loan sales activity. Loan loss provision expense for the quarter was $ 90,000 bringing the reserve to its highest level ever: 1.54 percent of net loans. The level of nonperforming assets improved by declining to $1.33 million as compared to $1.69 million in the second quarter 2003. The reserve for loan losses now represents 177 percent of quarter-end nonperforming assets, in our opinion, an appropriately prudent level.
Average earning assets during the third quarter were $ 312.2 million an increase of $ 63.3 million or 25 percent compared to $248.9 million in the corresponding quarter last year. Average loan balances were $ 151.5 million, an increase of 3.13 percent from the prior year’s third quarter average balances of $ 146.9 million. The balance of the bank’s investment securities portfolio continued to grow, averaging $ 154.2 million, an increase of 62.7percent compared with the prior year’s quarterly average of $ 94.8 million, while average overnight funds sold decreased to $ 5.5 million from the comparable quarter of last year’s average of $ 6.8 million. Deposits continued their strong growth, averaging $ 287 million for the quarter a 27.3 percent increase versus last year’s third quarter average of $ 225.5 million. Average total borrowed funds remained unchanged at $ 21.0 million, however, short term borrowings declined by $1 million, and term borrowings increased by $ 1 million to average $ 16 million versus $15 million in the third quarter 2002. Average total assets grew by $ 66.1 million or 24.5 percent from $ 270.4 million last year, to $ 336.5 million for the third quarter 2003.
Non-interest expense increased by 17.5 percent to $ 2.4 million in the third quarter 2003 versus $ 2 million last year. This increase is largely attributable to growth in salaries and benefits coupled with increases in expenses related to equipment, general office supplies and communications, as well as other miscellaneous expense. The bank’s efficiency ratio for the quarter was 60.8 percent a slight increase from 60.3 percent in the prior year.
Ralph Larry Lyons, President and CEO of Central Virginia Bankshares, Inc., commented: “The continuing strong and well balanced retail deposit growth we’ve experienced, is clear evidence we are serving our customers and markets well. These deposits have provided us the resources to invest in earning assets resulting in the significant growth and profitability of our bank over the past several years. With the prospect of a more stable interest rate environment and improvement in the general economic conditions, we expect that our loan to deposit ratio should begin to increase, and that coupled with continued growth of non-interest income and ongoing expense control, should result in a favorable earnings trend in the future.”
Readers are cautioned that this press release contains forward-looking statements made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current knowledge and assumptions about future events, and may address issues that involve significant risks, uncertainties, and estimates, that may cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements.
Central Virginia Bankshares, Inc. is the parent of Central Virginia Bank, a 30 year old community bank based in Powhatan County, a suburb of Richmond. It operates seven branch offices, two each in Powhatan and the adjacent counties of Chesterfield and Cumberland, plus one branch in Henrico County.
Selected Financial Data Follows for Central Virginia Bankshares, Inc.
Central Virginia Bankshares, Inc. | Third Quarter (Unaudited) | Year to Date | ||
2003 | 2002 | 2003 | 2002 | |
Net Income | 1,020,274 | 777,456 | 2,790,612 | 2,259,163 |
Interest & Fees on Loans | 2,604,883 | 2,813,860 | 7,759,123 | 8,239,795 |
Interest on Investments & Funds Sold | 2,071,397 | 1,605,164 | 5,782,286 | 4,823,308 |
Interest on Deposits | 1,542,901 | 1,704,165 | 4,400,279 | 5,174,265 |
Interest on Borrowings | 168,272 | 178,911 | 508,967 | 548,411 |
Net Interest Income (FTE) | 3,061,575 | 2,601,747 | 8,874,804 | 7,534,109 |
Non Interest Income | 838,629 | 724,656 | 2,138,457 | 1,823,143 |
Loan Loss Provision | 90,000 | 136,000 | 290,000 | 292,000 |
Interest Expense | 1,711,173 | 1,883,076 | 4,909,246 | 5,722,676 |
Non Interest Expense | 2,369,930 | 2,016,950 | 6,657,724 | 5,753,380 |
Period End Balances: | ||||
Investment Securities | 161,767,851 | 95,936,448 | ||
Fed Funds Sold | 8,102,000 | 9,294,000 | ||
Loans (net of Unearned Discount) | 153,089,621 | 146,588,180 | ||
Loan Loss Reserve | 2,363,693 | 2,098,229 | ||
Non Interest Bearing Deposits | 36,714,770 | 31,439,880 | ||
Total Deposits | 298,172,382 | 232,910,295 | ||
Borrowings | 21,318,500 | 21,170,000 | ||
Assets | 347,570,121 | 278,615,104 | ||
Period End Shareholders Equity | 26,833,570 | 23,737,231 | ||
Average Balances: | ||||
Average Assets | 336,500,166 | 270,378,775 | 309,752,303 | 263,189,389 |
Average Earning Assets | 312,185,226 | 248,932,945 | 285,191,785 | 242,576,857 |
Investment Securities | 154,227,937 | 94,806,289 | 132,853,367 | 94,231,509 |
Federal Funds Sold | 5,473,478 | 6,759,739 | 3,751,648 | 4,404,092 |
Loans (net of Unearned Discount) | 151,461,658 | 144,860,433 | 147,560,506 | 141,509,536 |
Non Interest Bearing Deposits | 35,290,444 | 28,045,665 | 31,734,449 | 26,770,609 |
Total Deposits | 286,989,465 | 225,477,122 | 260,778,975 | 218,375,270 |
FHLB Overnight Advances | 5,000,000 | 6,000,000 | 5,000,000 | 5,553,191 |
FHLB Term Borrowings | 16,000,000 | 15,000,000 | 16,000,000 | 15,000,000 |
Fed Funds Purchased & REPO | 675,652 | 207,207 | 803,921 | 1,665,704 |
Average Shareholders Equity | 27,066,898 | 22,877,274 | 26,395,084 | 21,678,884 |
Average Shares Outstanding - Basic | 2,089,585 | 2,053,360 | 2,074,866 | 2,050,289 |
Average Shares Outstanding - Fully Diluted | 2,157,639 | 2,197,477 | 2,167,496 | 2,146,895 |
Asset Quality: | ||||
Charged Off Loans | 26,292 | 8,556 | 76,865 | 62,692 |
Recoveries | 28,729 | 3,369 | 48,860 | 29,523 |
Period End: | ||||
Non-Accrual Loans | 30,346 | 306,928 | ||
Loans Past Due 90 Days or More | 1,067,598 | 1,085,662 | ||
Other Non Performing Assets | 140,000 | 150,000 | ||
Other Real Estate | 97,000 | 97,000 | ||
Total Non Performing Assets | 1,334,944 | 1,639,590 | ||
Per Share Data & Ratios: | ||||
Net Income Per Share - Basic | $ 0.49 | $ 0.38 | $ 1.35 | $ 1.10 |
Net Income Per Share - Fully Diluted | $ 0.47 | $ 0.35 | $ 1.29 | $ 1.05 |
Period End Book Value Per Share | $ 12.81 | $ 11.54 | ||
Return on Average Assets | 1.21% | 1.15% | 1.20% | 1.14% |
Return on Average Equity | 15.08% | 13.59% | 14.10% | 13.89% |
Efficiency Ratio | 60.76% | 60.26% | 60.45% | 61.67% |
Average Loans to Average Deposits | 52.78% | 65.14% | 56.58% | 65.69% |
Reserve for Loan Losses / Loans EOP | 1.54% | 1.43% | ||
Net Interest Margin (FTE) | 3.92% | 4.18% | 4.15% | 4.14% |
SOURCE:
Central Virginia Bankshares, Inc.
CONTACT:
Charles F. Catlett, III - Senior Vice President and Chief Financial Officer, (804) 403-2002