Virginia Capital Bancshares, Inc. Announces First Quarter 2001 Results

Apr 17, 2001, 01:00 ET from Virginia Capital Bancshares, Inc.

    FREDERICKSBURG, Va., April 17 /PRNewswire/ -- Virginia Capital Bancshares,
 Inc. (Nasdaq:   VCAP), the holding company for Fredericksburg State Bank, today
 reported first quarter 2001 diluted earnings of $.22 per share, excluding
 $141,000 of after-tax charges related to the pending merger with BB&T
 Corporation.  This compares to $.22 per share for the first quarter of 2000.
 Excluding merger-related charges, net income was $1.9 million for the first
 quarter of 2001 compared to net income of $2.1 million for the first quarter
 of 2000.
     Including merger-related charges, net income for the first quarter of 2001
 totaled $1.7 million or $.20 per diluted share compared to net income of $2.1
 million or $.22 per diluted share for the first quarter of 2000.
     Net interest income for the first quarter of 2001 was $5.0 million, a
 decrease of $349,000 compared to net interest income of $5.4 million for the
 first quarter of 2000. While interest income on loans increased $629,000
 compared to the first quarter of 2000, interest expense on deposits increased
 $679,000.  In addition, interest income on overnight and short-term deposits
 and investment securities decreased $300,000 compared to the first quarter of
 2000 as a result of the use of investment funds for stock repurchases
 throughout 2000.
     Noninterest expense increased $344,000 to $2.4 million for the three
 months ended March 31, 2001, compared to $2.1 million for the three months
 ended March 31, 2000.  The increase in noninterest expense is primarily due to
 the $280,000 of Virginia state franchise tax expense incurred in the first
 quarter of 2001.  The expense resulted from the Bank's conversion, which was
 completed on January 19, 2001, from a federally chartered savings bank to a
 Virginia commercial bank.  As a federally chartered savings bank, the Bank
 incurred no Virginia state franchise tax expense for 2000.
     Fredericksburg State Bank, as a Virginia commercial bank, is not subject
 to Virginia income taxes.  As a result of this conversion and reduced taxable
 income, income tax expense decreased $302,000 to $961,000 for the first
 quarter of 2001 compared to $1.3 million for the first quarter of 2000.
     Average loans increased 4.4% to $451.8 million compared to $432.6 million
 in the prior year's first quarter, respectively.   For the three months ended
 March 31, 2001 and 2000, the yield on average interest-earning assets was
 7.53% and 7.28%, respectively, while the cost of average interest-bearing
 liabilities was 5.30% and 4.70%.
     Key ratios for the first quarter of 2001 include return on average assets
 of 1.29% and return on average equity of 4.42%.  Comparable ratios for the
 first quarter of 2000 include return on average assets of 1.54% and return on
 average equity of 4.91%. The efficiency ratio increased to 47.14% primarily as
 a result of the franchise taxes and nonrecurring merger-related expenses
 included in noninterest expense.
     As previously announced, on January 23, 2001, Virginia Capital Bancshares,
 Inc. entered into an Agreement and Plan of Reorganization pursuant to which
 Virginia Capital will merge with and into BB&T Corporation.  The merger, which
 is subject to the approval of Virginia Capital shareholders and banking
 regulators, is expected to be completed in the second quarter of 2001.
     Fredericksburg State Bank serves its customers from four banking offices.
 At March 31, 2001, the Company had total assets of $542 million and total
 deposits of $370 million.  Stockholders' equity of $157 million represented
 29.0% of total assets.
     Winston-Salem, N.C.-based BB&T Corp., with $62.1 billion in assets,
 operates 893 banking offices in the Carolinas, Georgia, Virginia, Maryland,
 West Virginia, Tennessee, Kentucky and Washington, D.C.
     Statements contained in this news release, which are not historical facts,
 are forward-looking statements as that term is defined in the Private
 Securities Litigation Reform Act of 1995.  Such forward-looking statements are
 subject to risks and uncertainties, which could cause actual results to differ
 materially from those currently anticipated due to a number of factors, which
 include, but are not limited to, factors discussed in documents filed by the
 Company with the Securities and Exchange Commission from time to time.
     For additional information about VCAP's financial performance, products
 and services, please visit our web site at www.FSBNK.com.
 
                                          March 31,    Dec. 31,   March 31,
                                             2001        2000        2000
                                             (In         (In         (In
                                          thousands)  thousands)  thousands)
     Selected Financial Data:
     Total assets                           $541,704    $532,675    $537,078
     Loans receivable, net                   448,030     444,800     431,468
     Investment securities                    53,388      61,131      76,151
     Cash and cash equivalents                24,713      10,247      11,599
     Deposits                                370,337     367,345     357,405
     FHLB advances                             5,000       5,000       5,000
     Stockholders' equity                    157,292     155,494     165,483
 
     Asset Quality Ratios:
     Non-performing loans to total assets      0.21%       0.22%       0.37%
     Allowance for loan losses to total
      loans                                    1.25%       1.26%       1.30%
     Allowance for loan losses
        to non-performing loans              490.43%     483.46%     288.65%
 
 
 
                                                  For the Three Months Ended
                                               March 31, 2001    March 31, 2000
                                                        (In thousands)
     Selected Operating Data:
     Interest income                                 $9,951            $9,622
     Interest expense                                 4,927             4,249
         Net interest income                          5,024             5,373
     Provision for loan losses                           20                25
         Net interest income after
            provision for loan losses                 5,004             5,348
     Total noninterest income                            99                66
     Total noninterest expense                        2,415             2,071
     Income before income taxes                       2,688             3,343
     Income tax expense                                 961             1,263
 
         Net income                                  $1,727            $2,080
 
     Performance Ratios:
     Earnings per share - basic                       $0.21             $0.22
     Earnings per share - diluted                     $0.20             $0.22
     Basic weighted average shares
      outstanding                                 8,100,273         9,253,065
     Diluted weighted average shares
      outstanding                                 8,348,023         9,253,065
     Return on average assets                         1.29%             1.54%
     Return on average equity                         4.42%             4.91%
 
     Net interest margin                              3.80%             4.06%
     Total noninterest expense to average
      assets                                          1.80%             1.54%
     Efficiency ratio                                47.14%            38.07%
 
 

SOURCE Virginia Capital Bancshares, Inc.
    FREDERICKSBURG, Va., April 17 /PRNewswire/ -- Virginia Capital Bancshares,
 Inc. (Nasdaq:   VCAP), the holding company for Fredericksburg State Bank, today
 reported first quarter 2001 diluted earnings of $.22 per share, excluding
 $141,000 of after-tax charges related to the pending merger with BB&T
 Corporation.  This compares to $.22 per share for the first quarter of 2000.
 Excluding merger-related charges, net income was $1.9 million for the first
 quarter of 2001 compared to net income of $2.1 million for the first quarter
 of 2000.
     Including merger-related charges, net income for the first quarter of 2001
 totaled $1.7 million or $.20 per diluted share compared to net income of $2.1
 million or $.22 per diluted share for the first quarter of 2000.
     Net interest income for the first quarter of 2001 was $5.0 million, a
 decrease of $349,000 compared to net interest income of $5.4 million for the
 first quarter of 2000. While interest income on loans increased $629,000
 compared to the first quarter of 2000, interest expense on deposits increased
 $679,000.  In addition, interest income on overnight and short-term deposits
 and investment securities decreased $300,000 compared to the first quarter of
 2000 as a result of the use of investment funds for stock repurchases
 throughout 2000.
     Noninterest expense increased $344,000 to $2.4 million for the three
 months ended March 31, 2001, compared to $2.1 million for the three months
 ended March 31, 2000.  The increase in noninterest expense is primarily due to
 the $280,000 of Virginia state franchise tax expense incurred in the first
 quarter of 2001.  The expense resulted from the Bank's conversion, which was
 completed on January 19, 2001, from a federally chartered savings bank to a
 Virginia commercial bank.  As a federally chartered savings bank, the Bank
 incurred no Virginia state franchise tax expense for 2000.
     Fredericksburg State Bank, as a Virginia commercial bank, is not subject
 to Virginia income taxes.  As a result of this conversion and reduced taxable
 income, income tax expense decreased $302,000 to $961,000 for the first
 quarter of 2001 compared to $1.3 million for the first quarter of 2000.
     Average loans increased 4.4% to $451.8 million compared to $432.6 million
 in the prior year's first quarter, respectively.   For the three months ended
 March 31, 2001 and 2000, the yield on average interest-earning assets was
 7.53% and 7.28%, respectively, while the cost of average interest-bearing
 liabilities was 5.30% and 4.70%.
     Key ratios for the first quarter of 2001 include return on average assets
 of 1.29% and return on average equity of 4.42%.  Comparable ratios for the
 first quarter of 2000 include return on average assets of 1.54% and return on
 average equity of 4.91%. The efficiency ratio increased to 47.14% primarily as
 a result of the franchise taxes and nonrecurring merger-related expenses
 included in noninterest expense.
     As previously announced, on January 23, 2001, Virginia Capital Bancshares,
 Inc. entered into an Agreement and Plan of Reorganization pursuant to which
 Virginia Capital will merge with and into BB&T Corporation.  The merger, which
 is subject to the approval of Virginia Capital shareholders and banking
 regulators, is expected to be completed in the second quarter of 2001.
     Fredericksburg State Bank serves its customers from four banking offices.
 At March 31, 2001, the Company had total assets of $542 million and total
 deposits of $370 million.  Stockholders' equity of $157 million represented
 29.0% of total assets.
     Winston-Salem, N.C.-based BB&T Corp., with $62.1 billion in assets,
 operates 893 banking offices in the Carolinas, Georgia, Virginia, Maryland,
 West Virginia, Tennessee, Kentucky and Washington, D.C.
     Statements contained in this news release, which are not historical facts,
 are forward-looking statements as that term is defined in the Private
 Securities Litigation Reform Act of 1995.  Such forward-looking statements are
 subject to risks and uncertainties, which could cause actual results to differ
 materially from those currently anticipated due to a number of factors, which
 include, but are not limited to, factors discussed in documents filed by the
 Company with the Securities and Exchange Commission from time to time.
     For additional information about VCAP's financial performance, products
 and services, please visit our web site at www.FSBNK.com.
 
                                          March 31,    Dec. 31,   March 31,
                                             2001        2000        2000
                                             (In         (In         (In
                                          thousands)  thousands)  thousands)
     Selected Financial Data:
     Total assets                           $541,704    $532,675    $537,078
     Loans receivable, net                   448,030     444,800     431,468
     Investment securities                    53,388      61,131      76,151
     Cash and cash equivalents                24,713      10,247      11,599
     Deposits                                370,337     367,345     357,405
     FHLB advances                             5,000       5,000       5,000
     Stockholders' equity                    157,292     155,494     165,483
 
     Asset Quality Ratios:
     Non-performing loans to total assets      0.21%       0.22%       0.37%
     Allowance for loan losses to total
      loans                                    1.25%       1.26%       1.30%
     Allowance for loan losses
        to non-performing loans              490.43%     483.46%     288.65%
 
 
 
                                                  For the Three Months Ended
                                               March 31, 2001    March 31, 2000
                                                        (In thousands)
     Selected Operating Data:
     Interest income                                 $9,951            $9,622
     Interest expense                                 4,927             4,249
         Net interest income                          5,024             5,373
     Provision for loan losses                           20                25
         Net interest income after
            provision for loan losses                 5,004             5,348
     Total noninterest income                            99                66
     Total noninterest expense                        2,415             2,071
     Income before income taxes                       2,688             3,343
     Income tax expense                                 961             1,263
 
         Net income                                  $1,727            $2,080
 
     Performance Ratios:
     Earnings per share - basic                       $0.21             $0.22
     Earnings per share - diluted                     $0.20             $0.22
     Basic weighted average shares
      outstanding                                 8,100,273         9,253,065
     Diluted weighted average shares
      outstanding                                 8,348,023         9,253,065
     Return on average assets                         1.29%             1.54%
     Return on average equity                         4.42%             4.91%
 
     Net interest margin                              3.80%             4.06%
     Total noninterest expense to average
      assets                                          1.80%             1.54%
     Efficiency ratio                                47.14%            38.07%
 
 SOURCE  Virginia Capital Bancshares, Inc.