Cordia Bancorp Inc. Reports First Quarter 2016 Results

CordiaGrad Divestiture in First Quarter

MIDLOTHIAN, Va., May 16, 2016 (GLOBE NEWSWIRE) -- Cordia Bancorp Inc. (“Cordia”) (NASDAQ:BVA), parent company of Bank of Virginia, reported net loss of $(2.315) million, or $(0.35) per share, for the first quarter of 2015, compared to net income of $351,000, $0.05 per share, for the first quarter of 2015. Excluding one-time charges of $2.366 million related to the divestiture of CordiaGrad, our online student loan refinancing platform, core net earnings were $51,000, or $0.01 per share. Included in first quarter results were $221,000 of non-interest expenses for CordiaGrad that will not be included in future quarters due to the divestiture.

Highlights

Divestiture of CordiaGrad, our online student loan refinancing platform. One-time charges related to the divestiture are $800,000 for stock compensation for the former chief executive officer, loss on sale of the CordiaGrad business of $843,000, and a loan held-for-sale valuation expense of $723,000, for a total of $2.366 million.
16% year-over-year growth in loans, excluding guaranteed student loans
9% year-over-year growth in total deposits
Net interest income up 19%, compared to the first quarter of 2015
Nonperforming assets decreased to 1.06% of total assets from 1.16% for the first quarter of 2015
Tangible book value per share was $3.94 at March 31, 2016, down from $4.20 at December 31, 2015
Net interest margin increased to 2.88% from 2.69% for the first quarter of 2015

Chief Executive Officer Ed Barham stated, “Clearly, the biggest impact to our first quarter results related to the company’s strategic decision to exit the student loan refinance business. While we will incur some additional transitional costs related to the divestiture of CordiaGrad over the next quarter, our second half of the year should generate improved earnings momentum as we focus on our core community banking business. Despite the loss incurred from divestiture, Cordia Bancorp remains well capitalized as measured by regulatory standards.”

About Cordia Bancorp

Cordia Bancorp Inc. is a public bank holding company founded in 2009 seeking to invest in undervalued community banks and pursue organic and strategic growth in the Mid-Atlantic banking market. Substantially all of the assets of Cordia consist of its investment in Bank of Virginia. Bank of Virginia provides retail banking services to individuals and commercial customers through six full-service banking locations in the greater Richmond market, including Chesterfield and Henrico Counties and Colonial Heights, Virginia.

For more information about Cordia Bancorp and Bank of Virginia, visit our websites: www.cordiabancorp.com and www.bankofva.com

DISCLAIMER

This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company’s periodic filings with the Securities Exchange Commission. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements contained within this news release.

Cordia Bancorp
Consolidated Balance Sheets (unaudited)

			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
(Dollars in thousands, except per share data)			2016			2015			2015			2015			2015
Assets
	Cash and due from banks		$	4,911		$	6,135		$	9,437		$	11,771		$	9,602
	Fed funds sold and interest-bearing deposits			12,805			12,325			15,970			7,593			23,495
		Total cash and cash equivalents		17,716			18,460			25,407			19,364			33,097
	Securities available for sale, at fair value			44,899			46,220			48,721			58,445			41,411
	Securities held to maturity, at cost			37,227			25,500			26,281			27,087			20,132
	Restricted securities			2,393			2,355			2,330			2,331			2,405
	Loans held for sale			10,646			220			109			96			117
	Loans held for investment:
		Commercial real estate		110,903			105,902			106,335			111,180			109,734
		Commercial and industrial		32,881			34,819			26,751			27,919			24,057
		Guaranteed student loans		51,693			53,847			56,072			57,900			61,441
		Consumer and other		29,943			51,465			39,607			28,865			24,521
	Total loans held for investment			225,420			246,033			228,765			225,864			219,753
	Less: Allowance for loan losses			(866	)		(823	)		(903	)		(990	)		(1,102	)
	Net loans held for investment			224,554			245,210			227,862			224,874			218,651

	Premises and equipment, net			5,919			5,980			6,034			6,083			4,402
	Accrued interest receivable			2,018			2,085			1,924			2,033			1,986
	Other real estate owned, net of valuation allowance			2,017			1,870			1,761			1,769			1,647
	Other assets			429			590			7,555			704			696
		Total assets	$	347,818		$	348,490		$	347,984		$	342,786		$	324,544

Liabilities and stockholders' equity
	Non-interest bearing deposits			26,938			28,969			26,829			30,066			26,489
	Savings and interest bearing demand deposits			112,582			107,057			105,540			101,769			84,216
	Time deposits			150,503			154,018			156,939			152,800			154,920
		Total deposits		290,023			290,044			289,308			284,635			265,625

	Accrued expenses and other liabilities			943			707			553			464			1,061
	FHLB borrowings			30,000			30,000			30,000			30,000			30,000
		Total liabilities		320,966			320,751			319,861			315,099			296,686

	Common stock - voting			53			51			50			51			51
	Common stock - nonvoting			14			14			14			14			14
	Additional paid-in-capital			34,075			33,191			33,044			33,061			33,011
	Retained deficit			(7,142	)		(4,827	)		(4,700	)		(4,830	)		(5,066	)
	Accumulated other comprehensive loss			(148	)		(690	)		(285	)		(609	)		(152	)
		Total stockholders' equity		26,852			27,739			28,123			27,687			27,858
		Total liabilities and stockholders' equity	$	347,818		$	348,490		$	347,984		$	342,786		$	324,544

Cordia Bancorp
Consolidated Statements of Income (unaudited)

			Three Months Ended
				March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
(Dollars in thousands, except per share data)				2016			2015			2015			2015			2015
Interest Income
	Interest and fees on loans			$	2,628		$	2,404		$	2,294		$	2,327		$	2,183
	Investment securities				398			412			446			383			363
	Interest on federal funds sold and
		deposits with banks			9			8			9			5			7
		Total interest income			3,035			2,824			2,749			2,715			2,553

Interest Expense
	Interest on deposits				546			529			506			470			454
	Interest on FHLB Borrowings				95			95			95			93			89
		Total interest expense			641			624			601			563			543

Net interest income					2,394			2,200			2,148			2,152			2,010
	Provision for (recovery of) loan losses				98			37			(53	)		63			(340	)
Net interest income after provision for (recovery of) loan losses					2,296			2,163			2,201			2,089			2,350

Non-interest income (loss)
	Service charges on deposit accounts				31			39			35			30			30
	Net gain (loss) on sale of available for sale securities				-			(3	)		22			-			114
	Realized and unrealized gains (losses) on loans held for sale				(713	)		11			6			9			21
	Other fee income				68			62			52			58			48
		Total non-interest income (loss)			(614	)		109			115			97			213

Non-interest expense
	Salaries and employee benefits				1,904			1,006			1,085			1,082			1,280
	Professional services				170			147			108			100			84
	Occupancy				144			139			149			159			153
	Reversal of occupancy fair value discount				-			-			-			(225	)		-
	Data processing and communications				246			257			233			206			198
	FDIC assessment and bank fees				169			195			88			92			90
	Bank franchise taxes				48			49			49			49			49
	Student loan servicing fees and other loan expenses				167			227			174			208			146
	Other real estate expenses				39			13			26			45			6
	Supplies and equipment				73			72			71			70			73
	Insurance				18			19			20			19			20
	Director's fees				53			104			28			21			26
	Marketing and business development				35			118			64			31			18
	Loss on sale of subsidiary				843			-			-			-			-
	Other operating expenses				88			53			91			93			69
		Total non-interest expense			3,997			2,399			2,186			1,950			2,212

Net income (loss)				$	(2,315	)	$	(127	)	$	130		$	236		$	351

Earnings (loss) per share, basic and diluted				$	(0.35	)	$	(0.02	)	$	0.02		$	0.04		$	0.05
Weighted average shares outstanding, basic					6,658,976			6,572,933			6,572,239			6,583,848			6,559,217
Weighted average shares outstanding, diluted					6,658,976			6,572,933			6,572,239			6,583,848			6,559,217

Cordia Bancorp
Consolidated Financial Highlights (unaudited)
		As of and for the Three Months Ended
			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
(Dollars in thousands, except per share data)			2016			2015			2015			2015			2015
Results of Operations
	Interest income		$	3,035		$	2,824		$	2,749		$	2,715		$	2,553
	Interest expense			641			624			601			563			543
	Net interest income			2,394			2,200			2,148			2,152			2,010
	Provision for (recovery of) loan losses			98			37			(53	)		63			(340	)
	Net interest income after provision for (recovery of) loan losses			2,296			2,163			2,201			2,089			2,350
	Non-interest income (loss)			(614	)		109			115			97			213
	Non-interest expense			3,997			2,399			2,186			1,950			2,212
	Net income (loss)		$	(2,315	)	$	(127	)	$	130		$	236		$	351

	Earnings (loss) per share, basic and diluted		$	(0.35	)	$	(0.02	)	$	0.02		$	0.04		$	0.05
	Weighted average shares outstanding, basic			6,658,976			6,572,933			6,572,239			6,583,848			6,559,217
	Weighted average shares outstanding, diluted			6,658,976			6,572,933			6,572,239			6,583,848			6,559,217

Performance Ratios
	Return on average assets			-2.65	%		-0.14	%		0.15	%		0.29	%		0.44	%
	Return on average equity			-33.54	%		-1.79	%		1.85	%		3.40	%		5.20	%
	Return on average tangible equity			-33.61	%		-1.80	%		1.85	%		3.41	%		5.22	%
	Efficiency ratio			224.55	%		103.90	%		96.60	%		86.71	%		99.51	%

Yields and Rates
	Yield on loans			4.18	%		4.03	%		4.09	%		4.18	%		4.16	%
	Yield on securities			2.18	%		2.15	%		2.06	%		2.12	%		2.07	%
	Yield on interest earning assets			3.65	%		3.39	%		3.34	%		3.51	%		3.42	%
	Cost of interest bearing deposits			0.83	%		0.80	%		0.77	%		0.79	%		0.78	%
	Cost of total deposits			0.75	%		0.72	%		0.70	%		0.71	%		0.70	%
	Cost of borrowings			1.23	%		1.26	%		1.26	%		1.19	%		1.25	%
	Cost of interest bearing liabilities			0.87	%		0.84	%		0.82	%		0.83	%		0.83	%
	Interest rate spread			2.78	%		2.55	%		2.52	%		2.67	%		2.59	%
	Net interest margin			2.88	%		2.64	%		2.61	%		2.78	%		2.69	%

Capital
	Total equity to total assets			7.72	%		7.96	%		8.08	%		8.08	%		8.58	%
	Tangible equity to total assets			7.70	%		7.94	%		8.06	%		8.05	%		8.56	%
	Book value per share			3.95			4.21			4.29			4.21			4.23
	Tangible book value per share			3.94			4.20			4.27			4.19			4.22
	Common shares outstanding			6,795,000			6,586,786			6,562,906			6,582,806			6,584,106

Average Balances
	Loans		$	252,849		$	236,822		$	222,371		$	223,286		$	212,566
	Securities			73,562			75,979			86,089			72,391			71,198
	Earning assets			334,158			330,603			326,904			310,680			302,481
	Total assets			351,450			350,910			346,917			327,439			321,455
	Interest bearing deposits			264,891			263,393			261,609			239,871			236,415
	Total deposits			291,847			292,067			288,455			267,356			264,434
	FHLB borrowings			31,129			30,000			30,000			31,346			28,778
	Interest bearing liabilities			296,020			293,393			291,609			271,217			265,193
	Total equity			27,763			28,106			27,938			27,835			27,353
	Tangible equity			27,700			28,034			27,857			27,745			27,254

Asset Quality
	Net charge-offs/(recoveries)			55			171			34			175			(353	)
	Net charge-off rate			0.09	%		0.29	%		0.06	%		0.31	%		-0.67	%
	Non-performing loans			1,683			1,834			1,975			1,918			2,108
	Non-performing assets			3,700			3,704			3,736			3,687			3,755
	Allowance for loan losses			866			823			903			990			1,102
	Non-performing loans as a % of total loans held for investment			0.75	%		0.75	%		0.86	%		0.85	%		0.96	%
	Non-performing assets as a % of total assets			1.06	%		1.06	%		1.07	%		1.08	%		1.16	%
	Allowance for loan losses as a % of total loans held for investment			0.38	%		0.33	%		0.39	%		0.44	%		0.50	%
	Allowance for loan losses as a % of non-performing loans			51.46	%		44.87	%		45.72	%		51.62	%		52.28	%

Cordia Bancorp
GAAP to Non-GAAP Reconciliations (unaudited)

The table below shows the computations of tangible equity and tangible assets and certain related ratios, all of which
are considered to be non-GAAP financial measures. The tangible equity to tangible assets ratio has become a focus
of some investors and management believes this ratio may assist in analyzing the Corporation's capital position,
absent the effects of intangible assets. These non-GAAP financial measures have limitations as analytical tools
and should not be considered in isolation, or as substitute for analysis of results reported under GAAP. Because
not all companies use identical calculations, the non-GAAP measures presented in the following table may not be
comparable to those reported by other companies.


	As of and for the Three Months Ended
		March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
(Dollars in thousands, except per share data)		2016			2015			2015			2015			2015
Tangible Equity and Tangible Assets (Period End)
Total shareholders' equity (GAAP)		$	26,852		$	27,739		$	28,123		$	27,687		$	27,858
Less: intangible assets			59			68			77			86			95
Tangible Equity (non-GAAP)		$	26,793		$	27,671		$	28,046		$	27,601		$	27,763

Total assets (GAAP)		$	347,818		$	348,490		$	347,984		$	342,786		$	324,544
Less: intangible assets			59			68			77			86			95
Tangible assets (non-GAAP)		$	347,759		$	348,422		$	347,907		$	342,700		$	324,449

Total equity to total assets (GAAP)			7.72	%		7.96	%		8.08	%		8.08	%		8.58	%
Book value per share (GAAP)		$	3.95		$	4.21		$	4.29		$	4.21		$	4.23
Tangible equity to tangible assets (non-GAAP)			7.70	%		7.94	%		8.06	%		8.05	%		8.56	%
Tangible book value per share (non-GAAP)		$	3.94		$	4.20		$	4.27		$	4.19		$	4.22


Tangible Equity and Tangible Assets (Average)
Total shareholders' equity (GAAP)		$	27,763		$	28,106		$	27,938		$	27,835		$	27,353
Less: intangible assets			63			72			81			90			99
Tangible Equity (non-GAAP)		$	27,700		$	28,034		$	27,857		$	27,745		$	27,254

Total assets (GAAP)			351,450			350,910			346,917			327,439			321,455
Less: intangible assets			63			72			81			90			99
Tangible assets (non-GAAP)		$	351,387		$	350,838		$	346,836		$	327,349		$	321,356

Total equity to total assets (GAAP)			7.90	%		8.01	%		8.05	%		8.50	%		8.51	%
Book value per share (GAAP)		$	4.09		$	4.27		$	4.26		$	4.23		$	4.15
Tangible equity to tangible assets (non-GAAP)			7.88	%		7.99	%		8.03	%		8.48	%		8.48	%
Tangible book value per share (non-GAAP)		$	4.08		$	4.26		$	4.24		$	4.21		$	4.14

FOR MORE INFORMATION
CONTACT:  Mark Severson, 
CFO, Cordia Bancorp Inc.
804-763-1322

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Cordia Bancorp Inc. Reports First Quarter 2016 Results

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