Central Virginia Bankshares (CVBK) Inactive
Filed: 11 Feb 04, 12:00am
Exhibit 99
CENTRAL VIRGINIA BANKSHARES RECORD FOURTH QUARTER - UP 51% AND FULL YEAR EARNINGS – UP 30%
POWHATAN, VA., February 3, 2004 / PR Newswire / - Central Virginia Bankshares, Inc. (NASDAQ: CVBK) reported record fourth quarter 2003 earnings of $ 1,123,153 an increase of $ 377,152 or 51 percent when compared to $ 746,001 in the fourth quarter of 2002. On a per share basis, basic earnings were $ 0.53 per share, an increase of 47 percent versus $ 0.36 per share in the fourth quarter of the prior year, while fully diluted earnings per share were $ 0.52 compared with $ 0.34 for the fourth quarter 2002. In the fourth quarter, the return on assets was 1.27 percent versus 1.06 percent in the prior year, and the return on average shareholders equity was 16.38 percent, up from 12.55 percent in the prior year’s fourth quarter. At December 31, 2003, the book value of a share of common stock had improved to $13.41 compared to $11.90 in 2002.
For the full year, net income was $ 3,913,765 up by 30 percent or $ 908,601 when compared to the prior year’s comparable total of $3,005,164. Over the same period, primary earnings per share were $ 1.88 versus $ 1.46, and on a fully diluted basis were $ 1.81 versus $ 1.40 per share.
“The record fourth quarter and full year results for 2003 are clear evidence of our successful management of both earning assets and funding sources in the current interest rate environment, while still expanding non-interest income…” commented Ralph Larry Lyons, President and CEO. “…we are excited about the prospects for continued growth and profitability in 2004 as we will soon open our eighth and newest branch in the Midlothian area of Chesterfield county expanding our existing market presence in this high growth area.”
Average earning assets for the fourth quarter were $ 328.8 million, an increase of $ 70.1 million or 27.1 percent when compared to $258.7 million in the corresponding quarter last year. Average loans grew by $ 11.9 million to $ 155.7million, up 8.3 percent from the prior year’s fourth quarter average balances of $ 143.8 million. Deposits continued their robust growth, averaging $ 299.5 million for the quarter a 27.3 percent increase versus last year’s fourth quarter average of $ 235.2 million. As a result of consistent deposit growth coupled with moderate loan growth, the bank's average investment securities portfolio grew to $ 171.6 million, an increase of 65 percent compared with the prior year’s quarterly average of $ 104.3 million, while overnight funds sold declined to $0.7 million versus last year’s average of $ 9.7 million. Borrowings from the Federal Home Loan Bank in the fourth quarter averaged $23.6 million as compared to $20.9 million in the fourth quarter last year, being comprised of a $ 5 million overnight advance and $21 million in term convertible advances. Average total assets grew by $ 73.8 million or 26.2 percent to $ 354.8 million for the quarter compared to last year’s quarterly average of $ 281.1 million.
The fully tax equivalent (FTE) net interest income for the fourth quarter was $ 3.47 million, an increase of 33.2 percent compared to $ 2.60 million in the fourth quarter of 2002. The tax equivalent net interest margin increased to 4.22 percent for the quarter versus 4.03 percent in fourth quarter 2002. For the year, the FTE net interest income totaled $12.47 million versus $10.12 million, an improvement of $2.35 million or 23.3 percent. The net interest margin for the full year 2003 was 4.21 percent compared to 4.11 percent last year.
Non-interest income continued to grow to $ 865,334 in the fourth quarter, an increase of 23 percent over the prior year’s fourth quarter total of $ 703,487. For the year, non-interest income was $3 million up by $ 456,311 or 18 percent from the prior year’s total of $2,547,480. Non-interest income is comprised of deposit fees and charges, secondary market mortgage loan sales revenue, earnings on bank owned life insurance investments, non-deposit investment product sales and non-recurring net securities gains and losses taken as part of normal portfolio management. The bank’s provision for loan losses for the quarter was $120,000 bringing the total for the year to $410,000 compared to $148,000 and $440,000 respectively in the prior year, boosting the reserve to 1.55 percent of net loans. At quarter-end nonperforming assets totaled $1.96 million, an increase of $625,477 from the preceding third quarter 2003, and an increase of $ 483,812 when compared to the fourth quarter of the prior year 2002. Our loan loss reserve represents 125 percent of total nonperforming assets.
Non-interest expense in the fourth quarter totaled $2.48 million an increase of 19 percent versus $ 2.08 million in the fourth quarter of last year. For the full year 2003 total non-interest expense was $9.13 million versus $7.83 million in 2002, an increase of 16.6 percent. Three quarters of this annual increase can be attributed to increases in staffing coupled with enhancements to our employee health, benefit, and retirement plans, all a result of the overall growth of the bank. The other significant areas with increases were general other operating expenses, office supplies, communications and
postage expense. The bank’s efficiency ratios for the quarter and year to date improved and were 57.1 and 59 percent compared to 62.8 and 61.8 percent respectively for the prior year.
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, $365 million community bank with its headquarters and two branches in Powhatan County and six other banking offices, two in the County of Cumberland, three in Chesterfield County and one in Henrico County, adjacent to metropolitan Richmond, Va.
SOURCE:
Central Virginia Bankshares, Inc.
CONTACTS:
Charles F. Catlett, III - Senior Vice President and Chief Financial Officer (804) 403-2002
Selected Financial Data follows for Central Virginia Bankshares, Inc., as of December 31, 2003
Central Virginia Bankshares, Inc.
Fourth Quarter | 12 Months Year to Date | |||||
(Unaudited) | (Unaudited) | |||||
2003 | 2002 | 2003 | 2002 | |||
Net Income | 1,123,153 | 746,001 | 3,913,765 | 3,005,164 | ||
Interest & Fees on Loans | 2,601,148 | 2,656,854 | 10,360,271 | 10,875,799 | ||
Interest on Investments | 2,002,547 | 1,675,377 | 8,151,984 | 6,447,041 | ||
Interest on Funds Sold | 1,953 | 33,825 | 30,802 | 85,469 | ||
Interest on Deposits | 1,528,573 | 1,650,526 | 5,928,852 | 6,824,791 | ||
Interest on Borrowings | 213,882 | 174,299 | 722,849 | 722,710 | ||
Net Interest Income (FTE) | 3,472,173 | 2,606,191 | 12,472,598 | 10,119,450 | ||
Non Interest Income | 865,334 | 703,487 | 3,003,791 | 2,547,480 | ||
Loan Loss Provision | 120,000 | 148,000 | 410,000 | 440,000 | ||
Interest Expense | 1,742,455 | 1,824,825 | 6,651,701 | 7,547,501 | ||
Non Interest Expense | 2,476,735 | 2,078,431 | 9,134,459 | 7,831,811 | ||
Period End Balances: | ||||||
Investment Securities | 176,985,288 | 112,789,305 | ||||
Fed Funds Sold | 5,000,000 | 7,542,000 | ||||
Loans (net of Unearned Discount) | 158,504,366 | 141,493,673 | ||||
Loan Loss Reserve | 2,454,443 | 2,101,698 | ||||
Non Interest Bearing Deposits | 36,150,140 | 29,472,821 | ||||
Total Deposits | 300,720,514 | 237,988,377 | ||||
Borrowings | 35,214,000 | 21,438,000 | ||||
Assets | 365,834,702 | 285,086,060 | ||||
Period End Shareholders Equity | 28,342,738 | 24,499,211 | ||||
Average Balances: | ||||||
Average Assets | 354,821,545 | 281,068,452 | 321,100,266 | 267,310,960 | ||
Average Earning Assets | 328,818,835 | 258,704,103 | 296,301,891 | 246,378,368 | ||
Investment Securities | 171,617,265 | 104,331,740 | 142,737,692 | 96,691,023 | ||
Federal Funds Sold | 695,283 | 9,687,467 | 2,981,277 | 5,550,784 | ||
Loans (net of Unearned Discount) | 155,698,769 | 143,816,216 | 149,611,794 | 143,553,128 | ||
Non Interest Bearing Deposits | 37,152,865 | 29,443,840 | 33,100,187 | 27,344,766 | ||
Total Deposits | 299,469,459 | 235,209,398 | 270,531,097 | 222,233,253 | ||
FHLB Overnight Advances | 5,000,000 | 5,771,739 | 5,000,000 | 5,597,260 | ||
FHLB Term Borrowings | 18,608,696 | 15,228,261 | 16,657,534 | 15,057,534 | ||
Fed Funds Purchased & REPO | 2,754,912 | 206,808 | 1,297,238 | 1,334,629 | ||
Average Shareholders Equity | 27,464,674 | 23,771,385 | 26,705,093 | 22,259,646 | ||
Average Shares Outstanding - Primary | 2,102,898 | 2,059,197 | 2,081,931 | 2,054,298 | ||
Average Shares Outstanding Fully Diluted | 2,145,011 | 2,181,620 | 2,161,828 | 2,150,802 | ||
Asset Quality: | ||||||
Charged Off Loans | 35,190 | 146,678 | 112,054 | 209,370 | ||
Recoveries | 5,940 | 2,146 | 54,800 | 31,669 | ||
Period End: Non-Accrual Loans | 0 | 258,281 | ||||
Loans Past Due 90 Days or More | 1,723,421 | 971,328 | ||||
Other Non Performing Assets | 140,000 | 150,000 | ||||
Other Real Estate | 97,000 | 97,000 | ||||
Total Non Performing Assets | 1,960,421 | 1,476,609 | ||||
Per Share Data & Ratios: | ||||||
Net Income Per Share - Basic | $ 0.53 | $ 0.36 | $ 1.88 | $ 1.46 | ||
Net Income Per Share - Diluted | $ 0.52 | $ 0.34 | $ 1.81 | $ 1.40 | ||
Period End Book Value Per Share | $ 13.41 | $ 11.90 | ||||
Return on Average Assets | 1.27% | 1.06% | 1.22% | 1.12% | ||
Return on Average Equity | 16.38% | 12.55% | 14.66% | 13.50% | ||
Efficiency Ratio | 57.10% | 62.80% | 59.02% | 61.83% | ||
Average Loans to Average Deposits | 51.99% | 61.14% | 55.30% | 64.60% | ||
Reserve for Loan Losses / Loans EOP | 1.55% | 1.49% | ||||
Net Interest Margin (FTE) | 4.22% | 4.03% | 4.21% | 4.11% | ||