Exhibit 99.1
CENTRAL VIRGINIA BANKSHARES, 2005 EARNINGS YTD – UP 11.7 PERCENT, 4th QUARTER - UP 9. 5 PERCENT
POWHATAN, VA., January 31, 2006 / PR Newswire / - Central Virginia Bankshares, Inc. (NASDAQ: CVBK) reported fourth quarter 2005 earnings of $1,306,960 an increase of $113,662 or 9.5 percent when compared to $1,193,298 in the fourth quarter of 2004. On a per share basis, basic earnings were $0.57 per share, an increase of 8.2 percent versus $0.53 per share in the fourth quarter of the prior year, while fully diluted earnings per share were $0.56 compared with $0.52 for the fourth quarter 2004. In the fourth quarter, the Company’s return on assets was 1.32 percent up from the prior year’s fourth quarter of 1.27 percent, while the return on average shareholders equity was 16.22 percent, versus 15.37 percent in the prior year’s fourth quarter. At December 31, 2005, total assets stood at a record $397,217,720 with investment securities at $165.6 million, loans at $197.6 million, deposits growing to $322.2 million and total shareholders equity reaching $32.9 million. At year end, the book value of a share of common stock had improved to $14.40 compared to $13.87 in 2004.
For the full year 2005, net income totaled $4,876,840 an increase of $512,516 or 11.7 percent compared to $4,364,324 in 2004. Over this same period, basic earnings per share were $2.14 compared to $1.95 an increase of 10.2 percent and on a fully diluted basis were $2.11 versus $1.91 an increase of 10.6 percent. The return on assets for the full year 2005 improved to 1.25 percent versus 1.18 percent in 2004 and the return on shareholders equity increased to 15.02 percent compared to 14.80 percent in the prior year.
Average earning assets for the fourth quarter were $367.6 million, an increase of $19.0 million or 5.5 percent when compared to $348.6 million in the corresponding quarter last year. Average loans grew by $18.7 million to $194.9 million, up 10.6 percent from the prior year’s fourth quarter average balances of $176.2 million. Total deposits averaged $323.7 million up 5.5 percent from the prior year’s fourth quarter average of $306.9 million, continuing their growth albeit at slower rates than previously experienced in the past two years.The bank's average investment securities portfolio increased by 1.5 percent or $2.4 million to $168.8 million from $166.4 million in the prior year’s fourth quarter. Overnight funds sold declined to $3.3 million compared to last year’s fourth quarter average of $5.3 million. Average total borrowings from the Federal Home Loan Bank in the fourth quarter remained unchanged from the prior year at $30.5 million, however the composition of the total changed as $4.6 million of average overnight borrowings were converted to term borrowings. Average total assets grew by $20.1 million or 5.3 percent to $396.6 million for the quarter compared to last year’s quarterly average of $376.5 million.
The net interest income on a fully tax equivalent (FTE) basis for the fourth quarter was $3.98 million, an increase of $0.39 million or 11.0 percent compared to $3.58 million in the fourth quarter of 2004. The tax equivalent net interest margin for the fourth quarter increased to 4.33 percent from 4.11 percent in the prior year’s fourth quarter. For the full year the tax equivalent income was $15.2 million compared to $13.8 million, an improvement of $1.38 million or 10.0 percent. The net interest margin for the full year 2005 was 4.20 percent compared to 4.05 percent last year.
Non-interest income for the fourth quarter increased by 26.5 percent totaling $897,752, an increase of $187,942 compared to the prior year’s fourth quarter total of $709,810. The increase is largely attributable to increased net gains on securities sold, increased deposit fees and charges, and increased fees from secondary market real estate loan sales.For the full year, non-interest income was $3.0 million compared to $2.8 million in the prior year, an improvement of $164,525 or 5.8 percent from the prior year. With the exception of revenues from non-deposit investment product sales, which declined by 31 percent, all other non-interest income components were up or relatively unchanged from the prior year. Deposit fees and charges were up 13.3 percent, bank card fees were up 20.0 percent, non recurring securities gains and losses were up 22.7 percent, while secondary market mortgage loan sales revenues and other non-interest income remained largely unchanged. The bank’s provision for loan losses for the quarter was $37,000 bringing the total for the year to $203,000 compared to $43,000 and $414,500 respectively in the prior year. At the end of the fourth quarter 2005, the loan loss reserve was maintained at 1.48 percent of net loans, versus 1.50 percent of net loans at the end of the fourth quarter of the prior year. The slight decline in the reserve is reflective of the lower levels of non-performing assets throughout the year. At quarter-end nonperforming assets totaled $1,077,905, down from the immediately preceding third quarter’s balance of $1,590,340 and up slightly from the fourth quarter of 2004’s balance of $999,849. The loan loss reserve also represents 271 percent coverage of total nonperforming assets.
Non-interest expense in the fourth quarter 2005 totaled $2.91 million an increase of 12.6 percent versus $2.58 million in the fourth quarter of last year. For the full year 2005, total non-interest expense was $10.95 million versus $9.98 million in 2004, an increase of $979,698 or 9.8 percent. Fifty-eight percent of the annual increase can be attributed to increases in
staffing plus continuing enhancements to our employee health, benefit, and retirement plans, all a direct result of the overall growth of the bank. The remaining areas with significant increases were occupancy expenses due to the opening of our new main office in July 2005, legal and professional fees, taxes and licenses, equipment repairs and maintenance, and advertising and public relations expense. The bank’s efficiency ratios for the quarter and year to date were 59.7 and 60.1 percent compared to 60.2 and 59.8 percent respectively for the prior year.
“Our results for 2005 are indicative of sound earning asset and funding management coupled with effective deposit pricing. Despite our 2005 growth of 4.7 percent, we increased our return on assets to 1.25 percent, our net income increased by 11.7 percent, we increased capital by 4.9 percent, and our return on shareholders equity increased to 15.0 percent…” commented Ralph Larry Lyons, President and CEO. “…we expect our favorable growth trends should continue in 2006. Competition in the markets we serve remains keen and there is no doubt 2006 will be another challenging year, with the full financial impact of our new main office and its related expense, the potential for new branches, and interest rates stabilizing along a flat yield curve. We plan for 2006 to be an aggressive new business development year for Central Virginia Bank, and I believe we are well positioned not only to meet but to exceed our goals. 2006 should be another record year for Central Virginia Bankshares”.
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, $400 million community bank with its headquarters 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, 2005
Central Virginia Bankshares, Inc.
| | | Fourth Quarter | | 12 Months Year to Date |
| | | (Unaudited) | | (Unaudited) |
| | | 2005 | 2004 | | 2005 | 2004 |
| | | | | | | |
Net Income | | 1,306,960 | 1,193,298 | | 4,876,840 | 4,364,324 |
Interest & Fees on Loans | | 3,759,895 | 2,977,919 | | 13,609,704 | 11,122,815 |
Interest on Investments | | 2,314,144 | 2,272,763 | | 9,337,014 | 9,156,369 |
Interest on Funds Sold | | 32,572 | 23,734 | | 72,341 | 38,260 |
Interest on Deposits | | 1,982,228 | 1,556,116 | | 7,190,999 | 5,982,163 |
Interest on Borrowings | | 350,035 | 356,559 | | 1,438,994 | 1,363,285 |
Net Interest Income (FTE) | | 3,975,291 | 3,579,762 | | 15,219,087 | 13,839,362 |
Non Interest Income | | 897,752 | 709,810 | | 3,002,909 | 2,838,384 |
Loan Loss Provision | | 37,000 | 43,000 | | 203,000 | 414,500 |
Interest Expense | | 2,332,263 | 1,912,675 | | 8,629,993 | 7,345,448 |
Non Interest Expense | | 2,908,366 | 2,582,543 | | 10,954,903 | 9,975,205 |
Period End Balances: | | | | | | |
Investment Securities | | 165,658,244 | 169,039,238 | | | |
Fed Funds Sold | | - | - | | | |
Mortgage Loans Held for Sale | | 909,800 | 1,264,175 | | | |
Loans (net of Unearned Discount) | | 197,558,226 | 179,932,177 | | | |
Loan Loss Reserve | | 2,917,670 | 2,698,622 | | | |
Non Interest Bearing Deposits | | 44,572,283 | 41,046,290 | | | |
Total Deposits | | 322,228,948 | 309,946,969 | | | |
Borrowings | | 40,190,000 | 36,497,000 | | | |
Assets | | 397,217,720 | 379,276,193 | | | |
Period End Shareholders Equity | | 32,908,971 | 31,380,946 | | | |
Average Balances: | | | | | | |
Average Assets | | 396,641,674 | 376,523,455 | | 391,713,081 | 369,501,834 |
Average Earning Assets | | 367,602,402 | 348,601,721 | | 362,360,007 | 341,839,984 |
Investment Securities | | 168,792,046 | 166,383,187 | | 173,369,318 | 167,271,349 |
Federal Funds Sold | | 3,338,674 | 5,289,196 | | 2,192,175 | 2,767,355 |
Mortgage Loans Held for Sale | | 597,320 | 735,833 | | 589,770 | 531,333 |
Loans (net of Unearned Discount) | | 194,874,361 | 176,193,506 | | 186,208,744 | 171,269,946 |
Non Interest Bearing Deposits | | 46,538,695 | 40,067,230 | | 42,748,536 | 38,567,126 |
Total Deposits | | 323,712,932 | 306,874,527 | | 318,679,166 | 300,772,675 |
FHLB Overnight Advances | | - | 4,586,957 | | 295,890 | 5,252,732 |
FHLB Term Borrowings | | 30,500,000 | 25,913,043 | | 30,834,247 | 24,939,891 |
Fed Funds Purchased & REPO | | 2,764,304 | 1,777,663 | | 2,739,819 | 2,894,884 |
Average Shareholders Equity | | 32,222,235 | 31,048,595 | | 32,465,553 | 29,487,242 |
Average Shares Outstanding - Basic | | 2,283,758 | 2,255,110 | | 2,274,010 | 2,243,527 |
Average Shares Outstanding Fully Diluted | | 2,323,519 | 2,301,185 | | 2,313,650 | 2,290,049 |
Asset Quality: | | | | | | |
Charged Off Loans | | 11,416 | 30,596 | | 93,702 | 213,796 |
Recoveries | | 12,937 | 15,205 | | 109,750 | 43,475 |
Period End: Non-Accrual Loans | | 719,915 | 270,546 | | | |
Loans Past Due 90 Days or More | | 247,160 | 604,783 | | | |
Other Non Performing Assets | | 110,830 | 124,520 | | | |
Other Real Estate | | - | - | | | |
Total Non Performing Assets | | 1,077,905 | 999,849 | | | |
Per Share Data & Ratios: | | | | | | |
Net Income Per Share - Basic | | $ 0.57 | $ 0.53 | | $ 2.14 | $ 1.95 |
Net Income Per Share - Diluted | | $ 0.56 | $ 0.52 | | $ 2.11 | $ 1.91 |
Period End Book Value Per Share | | $ 14.40 | $ 13.87 | | | |
Return on Average Assets | | 1.32% | 1.27% | | 1.25% | 1.18% |
Return on Average Equity | | 16.22% | 15.37% | | 15.02% | 14.80% |
Efficiency Ratio | | 59.68% | 60.21% | | 60.12% | 59.81% |
Average Loans to Average Deposits | | 60.20% | 57.42% | | 58.43% | 56.94% |
Reserve for Loan Losses / Loans EOP | | 1.48% | 1.50% | | | |
Net Interest Margin (FTE) | | 4.33% | 4.11% | | 4.20% | 4.05% |
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