Exhibit 99.1
CENTRAL VIRGINIA BANKSHARES: FIRST QUARTER EARNINGS, UP 15 PERCENT
POWHATAN, VA., April 26, 2005 / PR Newswire / - Central Virginia Bankshares, Inc. (NASDAQ: CVBK) reported first quarter 2005 earnings of $1,170,669 an increase of $148,845 or 14.6 percent when compared to $1,021,824 in the first quarter of 2004. On a per share basis, basic earnings were $0.52 per share an increase of 13 percent versus $0.46 per share in the first quarter of the prior year. On a fully diluted basis, net income per share was $0.51 an improvement of 13 percent compared to $0.45 in the comparable period of the prior year. For the first quarter, the return on average assets was 1.23 percent versus the prior year’s 1.12 percent. The return on average shareholders equity was 14.61 percent compared to 13.85 percent in last year’s first quarter. At quarter end, shareholders equity stood at $30.6 million, versus $31.1 million in the first quarter of 2004. Accordingly, the book value of a share of common stock was $13.53 compared to $13.90 in 2004.
The fully tax equivalent net interest income in the first quarter was $3.63 million, an increase of 7.8 percent compared to $3.37 million in the first quarter of 2004. The tax equivalent net interest margin was 4.13 percent for the quarter versus 4.01 percent in first quarter 2004. Non-interest income declined slightly ending the quarter at $591,049 a decrease of 9 percent from the prior year’s first quarter total of $648,757. This change is attributable to lower volume and revenue from sales of non-deposit investment products, the absence of any net securities gains resulting from normal investment portfolio management, and a decline in the volume and resulting fees from our secondary market mortgage loan activity. There was no loan loss provision expense for the quarter compared to $142,500 in the comparable quarter of last year. This decision was due to several factors: the absence of loan growth since year-end 2004, a continuing improvement in asset quality as evidenced by the lowest relative levels of non-performing assets in the bank’s recent history, no net charge-offs for the quarter, and the current balance of the reserve represents 1.52 percent of net loans, as compared to 1.50 percent at year-end 2004, and 1.53 percent in the first quarter of 2004. Nonperforming assets at quarter-end 2005 totaled $581,393, a decline of $418,456 from the December 31, 2004 balance of $999,849, and a decline of $2.4 million from the first quarter 2004’s balance of $2,984,944. The reserve for loan losses now represents 467 percent of quarter-end nonperforming assets.
Average earning assets in the first quarter were $351.9 million an increase of $15.5 million or 4.6 percent compared to $336.5 million in the corresponding quarter last year. Average loan balances grew to $180.5 million, an increase of 11.4 percent from the prior year’s first quarter average balances of $162.1 million. The bank's investment securities portfolio averaged $169 million, a contraction of $3.5 million from $172.5 million in first quarter 2004, providing some of the funding for the increase in loans. Average overnight funds sold increased to $1.9 million from $1.5 million in the comparable quarter of last year . Our deposits continue to grow, averaging $309.9 million for the quarter a 5.7 percent increase versus last year’s first quarter average of $293.3 million. The combined average balances of overnight advances, and term borrowings from the FHLB, Overnight Fed Funds and Repurchase agreements, and long-term Capital Trust Preferred totaled $38.2 million a decrease of $2.6 million from the prior year’s average of $40.8 million. Average total assets grew by $16.9 million or 4.6 percent to $381.3 million for the quarter.
Non-interest expense increased by 11 percent to $2.6 million in the first quarter 2005 versus $2.3 million last year. Increases in salaries and benefits, represent the largest component of the overall increase and resulted from the general growth of the bank. Occupancy expense increased by 28 percent to $121 thousand largely due to the Bellgrade branch which was not open in the first quarter 2004. Legal and professional fees, increased to $68 thousand from $24 thousand in the prior year, while other miscellaneous expense increased by $49 thousand to $387 thousand, and comprise the remainder of significant increases. The company will continue its efforts to control expense growth, and improve its efficiency ratio, which was 60.5 percent for the quarter compared to 57.2 percent in the prior year.
Ralph Larry Lyons, President and CEO of Central Virginia Bankshares, Inc., commented: “First quarter earnings and profitability continue to meet our expectations, deposit growth continues but at a more historical rate thus our earning assets have grown accordingly. We believe our bank is well positioned to continue its record of outstanding performance 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 32 year old community bank based in Powhatan County, a suburb of Richmond. It operates eight branch offices, two each in Powhatan and the adjacent county of Cumberland, three in western Chesterfield, and one branch in western Henrico County.
Selected Financial Data Follows for Central Virginia Bankshares, Inc.:
SOURCE:
Central Virginia Bankshares, Inc.
CONTACT:
Charles F. Catlett, III - Senior Vice President and Chief Financial Officer, (804) 403-2002
Central Virginia Bankshares, Inc. | | First Quarter |
| | | (Unaudited) |
| | | 2005 | 2004 |
| | | | |
Net Income | | 1,170,669 | 1,021,824 |
Interest & Fees on Loans | | 3,100,161 | 2,594,177 |
Interest on Investments | | 2,277,751 | 2,352,132 |
Interest on Funds Sold | | 10,996 | 2,138 |
Interest on Deposits | | 1,608,770 | 1,463,191 |
Interest on Borrowings | | 359,856 | 328,279 |
Net Interest Income (FTE) | | 3,633,844 | 3,370,810 |
Non Interest Income | | 591,049 | 648,757 |
Loan Loss Provision | | 0 | 142,500 |
Interest Expense | | 1,968,626 | 1,791,470 |
Non Interest Expense | | 2,554,181 | 2,300,920 |
Period End Balances: | | | |
Investment Securities | | 168,835,338 | 162,083,315 |
Fed Funds Sold | | 2,726,000 | 9,250,000 |
Loans (net of Unearned Discount) | | 178,825,888 | 170,013,243 |
Loan Loss Reserve | | 2,715,143 | 2,600,105 |
Non Interest Bearing Deposits | | 39,598,331 | 36,095,515 |
Total Deposits | | 315,075,972 | 298,270,817 |
Borrowings | | 36,213,000 | 36,079,500 |
Assets | | 383,615,843 | 368,325,827 |
Period End Shareholders Equity | | 30,624,210 | 31,102,039 |
Average Balances: | | | |
Average Assets | | 381,384,116 | 364,485,622 |
Average Earning Assets | | 351,930,794 | 336,466,020 |
Investment Securities | | 169,055,979 | 172,530,231 |
Federal Funds Sold | | 1,888,554 | 1,453,033 |
Loans (net of Unearned Discount) | | 180,526,717 | 162,055,307 |
Non Interest Bearing Deposits | | 39,296,219 | 35,597,322 |
Total Deposits | | 309,949,380 | 293,308,464 |
FHLB Overnight Advances | | 1,200,000 | 7,439,560 |
FHLB Term Borrowings | | 29,300,000 | 21,824,176 |
Fed Funds Purchased & REPO | | 2,691,400 | 6,548,852 |
Average Shareholders Equity | | 32,052,777 | 29,506,366 |
Average Shares Outstanding - Primary | | 2,262,243 | 2,229,521 |
Average Shares Outstanding Fully Diluted | | 2,308,567 | 2,276,236 |
Asset Quality: | | | |
Charged Off Loans | | 24,794 | 3,813 |
Recoveries | | 41,315 | 6,974 |
| | | | |
Period End: Non -Accrual Loans | | 244,162 | 18,408 |
Loans Past Due 90 Days or More | | 219,471 | 2,808,537 |
Other Non Performing Assets | | 117,760 | 140,000 |
Other Real Estate | | - | 18,000 |
Total Non Performing Assets | | 581,393 | 2,984,945 |
Per Share Data & Ratios: | | | |
Net Income Per Share - Basic | | $ 0.52 | $ 0.46 |
Net Income Per Share - Diluted | | $ 0.51 | $ 0.45 |
Period End Book Value Per Share | | $ 13.53 | $ 13.90 |
Return on Average Assets | | 1.23% | 1.12% |
Return on Average Equity | | 14.61% | 13.85% |
Efficiency Ratio | | 60.46% | 57.24% |
Average Loans to Average Deposits | | 58.24% | 55.25% |
Reserve for Loan Losses / Loans EOP | | 1.52% | 1.53% |
Net Interest Margin (FTE) | | 4.01% | 4.01% |
| | | | |
SOURCE:
Central Virginia Bankshares, Inc.
CONTACT:
Charles F. Catlett, III - Senior Vice President and Chief Financial Officer, (804) 403-2002
