Central Virginia Bankshares Reports Earnings for First Quarter 2001

Apr 19, 2001, 01:00 ET from Central Virginia Bankshares, Inc.

    POWHATAN, Va.,  April 19 /PRNewswire/ -- Central Virginia Bankshares, Inc.
 (Nasdaq: CVBK) reported earnings for the first quarter 2001 were $ 407,645 as
 compared to $ 485,524 in first quarter 2000. On a per share basis, earnings
 were $ 0.21 per share a decline of 16 percent versus $ 0.25 per share in the
 first quarter of the prior year.
     Average earning assets in the first quarter increased by $ 5.7 million or
 3.2 percent to $ 185.9 million. Average loans grew by $ 1.9 million or 1.5
 percent to $ 133.8 million, the bank's average investment portfolio was
 essentially level with the prior year's balance at $ 48.4 million, however,
 average temporary funds sold increased substantially from essentially a zero
 balance to $ 3.7 million. Average total deposits have increased strongly,
 ending the quarter at $ 167.2 million, a 10.6 percent increase versus the
 prior year's first quarter. Our average borrowings were reduced by over 44
 percent to $ 10.2 million from $ 18.2 million in the prior year. Finally,
 average total assets grew by $ 7.2 million or 3.8 percent to $ 197.8 million.
     Due to three reductions in interest rates by the Fed during the first
 quarter, the bank's tax equivalent net interest income declined by 7.9 percent
 to $ 2.06 million compared to $ 2.24 million in the first quarter of 2000,
 correspondingly, the tax equivalent net interest margin was 4.15 percent in
 2001 compared to 4.63 percent in first quarter 2000. However, first quarter
 2001 non-interest income increased by 14 percent to $ 401,877 versus $ 352,483
 in the prior year. The bank's provision for loan losses was $ 75,000 in the
 first quarter versus $ 60,000 in the prior year. The increase in the reserve
 is in line with our conservative philosophy of reserving for potential loan
 problems, particularly in the face of a questionable economy. Non-interest
 expense of $ 1.6 million in the first quarter was up only four tenths of one
 percent compared to same quarter of last year and is attributable to increases
 in salaries and employee benefits, and occupancy and equipment expenses.
     "The rapid decline in interest rates has obviously had an impact on our
 net interest income ... " commented Ralph Larry Lyons, President and CEO of
 Central Virginia Bankshares, Inc.   " ... however, our interest expense yields
 appear to have peaked, and our non-interest income continues to grow, both of
 which are positive indicators. We continue to emphasize prudent loan growth
 and expense control, and still expect 2001 to be another outstanding year."
 
     Central Virginia Bankshares, Inc. is the parent of Central Virginia Bank,
 a 27 year old community bank headquartered in Powhatan County, a suburb of
 Richmond. It operates six branch offices, two each in Powhatan and the
 adjacent counties of Chesterfield and Cumberland.
 
                                                          First Quarter
                                                       2001           2000
 
     Net Income                                       407,645        485,524
     Net Interest Income (FTE)                      2,058,179      2,235,767
     Non Interest Income                              401,877        352,483
     Loan Loss Provision                               75,000         60,000
     Non Interest Expense                           1,619,527      1,613,040
     Period End Balances:
     Investments                                   52,191,459     45,304,053
     Loans                                        134,432,544    132,956,384
     Loan Loss Reserve                              1,704,535      1,540,832
     Deposits                                     176,158,040    152,481,825
     Borrowings                                    10,167,642     21,908,390
     Assets                                       206,939,007    192,619,970
     Period End Shareholders Equity                19,937,272     17,467,622
 
     Average Assets                               197,761,960    190,514,549
     Average Earning Assets                       185,947,308    180,215,757
     Average Shareholders Equity                   19,474,848     17,327,605
     Average Shares Outstanding                     1,936,477      1,924,205
     Per Share Data & Ratios:
     Net Income Per Share                               $0.21          $0.25
     Book Value Per Share                              $10.28          $9.06
     Return on Average Assets                            0.82%          1.02%
     Return on Average Equity                            8.37%         11.21%
 
 

SOURCE Central Virginia Bankshares, Inc.
    POWHATAN, Va.,  April 19 /PRNewswire/ -- Central Virginia Bankshares, Inc.
 (Nasdaq: CVBK) reported earnings for the first quarter 2001 were $ 407,645 as
 compared to $ 485,524 in first quarter 2000. On a per share basis, earnings
 were $ 0.21 per share a decline of 16 percent versus $ 0.25 per share in the
 first quarter of the prior year.
     Average earning assets in the first quarter increased by $ 5.7 million or
 3.2 percent to $ 185.9 million. Average loans grew by $ 1.9 million or 1.5
 percent to $ 133.8 million, the bank's average investment portfolio was
 essentially level with the prior year's balance at $ 48.4 million, however,
 average temporary funds sold increased substantially from essentially a zero
 balance to $ 3.7 million. Average total deposits have increased strongly,
 ending the quarter at $ 167.2 million, a 10.6 percent increase versus the
 prior year's first quarter. Our average borrowings were reduced by over 44
 percent to $ 10.2 million from $ 18.2 million in the prior year. Finally,
 average total assets grew by $ 7.2 million or 3.8 percent to $ 197.8 million.
     Due to three reductions in interest rates by the Fed during the first
 quarter, the bank's tax equivalent net interest income declined by 7.9 percent
 to $ 2.06 million compared to $ 2.24 million in the first quarter of 2000,
 correspondingly, the tax equivalent net interest margin was 4.15 percent in
 2001 compared to 4.63 percent in first quarter 2000. However, first quarter
 2001 non-interest income increased by 14 percent to $ 401,877 versus $ 352,483
 in the prior year. The bank's provision for loan losses was $ 75,000 in the
 first quarter versus $ 60,000 in the prior year. The increase in the reserve
 is in line with our conservative philosophy of reserving for potential loan
 problems, particularly in the face of a questionable economy. Non-interest
 expense of $ 1.6 million in the first quarter was up only four tenths of one
 percent compared to same quarter of last year and is attributable to increases
 in salaries and employee benefits, and occupancy and equipment expenses.
     "The rapid decline in interest rates has obviously had an impact on our
 net interest income ... " commented Ralph Larry Lyons, President and CEO of
 Central Virginia Bankshares, Inc.   " ... however, our interest expense yields
 appear to have peaked, and our non-interest income continues to grow, both of
 which are positive indicators. We continue to emphasize prudent loan growth
 and expense control, and still expect 2001 to be another outstanding year."
 
     Central Virginia Bankshares, Inc. is the parent of Central Virginia Bank,
 a 27 year old community bank headquartered in Powhatan County, a suburb of
 Richmond. It operates six branch offices, two each in Powhatan and the
 adjacent counties of Chesterfield and Cumberland.
 
                                                          First Quarter
                                                       2001           2000
 
     Net Income                                       407,645        485,524
     Net Interest Income (FTE)                      2,058,179      2,235,767
     Non Interest Income                              401,877        352,483
     Loan Loss Provision                               75,000         60,000
     Non Interest Expense                           1,619,527      1,613,040
     Period End Balances:
     Investments                                   52,191,459     45,304,053
     Loans                                        134,432,544    132,956,384
     Loan Loss Reserve                              1,704,535      1,540,832
     Deposits                                     176,158,040    152,481,825
     Borrowings                                    10,167,642     21,908,390
     Assets                                       206,939,007    192,619,970
     Period End Shareholders Equity                19,937,272     17,467,622
 
     Average Assets                               197,761,960    190,514,549
     Average Earning Assets                       185,947,308    180,215,757
     Average Shareholders Equity                   19,474,848     17,327,605
     Average Shares Outstanding                     1,936,477      1,924,205
     Per Share Data & Ratios:
     Net Income Per Share                               $0.21          $0.25
     Book Value Per Share                              $10.28          $9.06
     Return on Average Assets                            0.82%          1.02%
     Return on Average Equity                            8.37%         11.21%
 
 SOURCE  Central Virginia Bankshares, Inc.