EX-99 2 ex99.htm Central Virginia Bankshares, Inc

Exhibit 99.1


CENTRAL VIRGINIA BANKSHARES, 2004 EARNINGS – UP 11.5  PERCENT,  4th QUARTER - UP 6.25 PERCENT  


POWHATAN, VA.,  February 2, 2005 / PR Newswire /  - Central Virginia Bankshares, Inc. (NASDAQ: CVBK) reported  fourth quarter 2004 earnings of $ 1,193,298 an increase of $ 70,145 or 6.25 percent when compared to $ 1,123,153  in the fourth quarter of 2003. On a per share basis, basic earnings were $ 0.53 per share, an increase of 4 percent versus $ 0.51 per share in the fourth quarter of the prior year, while fully diluted earnings per share were $ 0.52 compared with $ 0.50 for the fourth quarter 2003.  In the fourth quarter, the Company’s return on assets was 1.27 percent unchanged from the prior year’s fourth quarter, while the return on average shareholders equity was 15.37 percent, versus 16.36 percent in the prior year’s fourth quarter. At December 31, 2004, total assets stood at a record $379,276,193, with investment securities at $169.0 million, loans at $179.9 million, deposits growing to $309.9 million and total shareholders equity reaching $31.4 million. At year end, the book value of a share of common stock had improved to $13.87 compared to $12.77 in 2003.


For the twelve months of 2004, net income totaled $ 4,364,324 an increase of $ 450,559 or 11.5 percent compared to $ 3,913,765 in 2003. Over this same period, primary earnings per share were $1.95 compared to $1.79 and on a fully diluted basis were $1.91 versus $ 1.72 an increase of 10.5 percent. The return on average assets was 1.18 percent and the return on shareholders equity was 14.8 percent.


Average earning assets for the fourth quarter were $ 348.6 million, an increase of $ 19.7 million or 6.02 percent when compared to $328.9 million in the corresponding quarter last year. Average loans grew by $ 20.5 million to $ 176.2 million, up 13.1 percent from the prior year’s fourth quarter average balances of $ 155.7 million. Deposits averaged $306.9 million up 2.5 percent from the prior year’s fourth quarter average of $299.5 million, as growth slowed from the double digit pace experienced over the past two years. The combination of a substantial increase in loans coupled with the slower deposit growth resulted in the bank's average investment securities portfolio shrinking by 3 percent or $5.3 million to $166.4 million from $ 171.7 million in the prior year’s fourth quarter. Overnight funds sold increased to $5.3 million compared to last year’s fourth quarter average of $ 0.7 million. Borrowings from the Federal Home Loan Bank in the fourth quarter averaged $30.5 million compared to $23.6 million in the fourth quarter last year, being comprised of a $ 4.6 million overnight advance and $25.9 million in fixed rate term convertible advances. Average total assets grew by $ 21.7 million or 6.12 percent to $ 376.5 million for the quarter compared to last year’s quarterly average of $ 354.8 million.


The net interest income on a fully tax equivalent (FTE) basis for the fourth quarter was $ 3.58 million, an increase of $0.11 million or 3.1 percent compared to $ 3.47 million in the fourth quarter of 2003. The tax equivalent net interest margin decreased to 4.11 percent for the quarter versus 4.22 percent in fourth quarter 2003. For the year, the FTE net interest income totaled $13.84 million versus $12.47 million, an improvement of $1.37 million or 11 percent. The net interest margin for the full year 2004 was 4.05 percent compared to 4.21 percent last year.


Non-interest income totaled $ 709,810 in the fourth quarter, a decline of 18 percent or $155,524 compared to the prior year’s fourth quarter total of $ 865,334. The decline is largely attributable to fewer securities gains and lower non-deposit investment product sales volumes and resulting commissions. For the year, non-interest income was $2.8 million compared to $3.0 million in the prior year, a decline of $ 165,407 or 5.5 percent from the prior year. Non-interest income is comprised of deposit fees and charges, secondary market mortgage loan sales revenue, earnings on bank owned life insurance investments, non-deposit investment product sales and non-recurring net securities gains and losses taken as part of regular portfolio management. The bank’s provision for loan losses for the quarter was $43,000 bringing the total for the year to $414,500 compared to $120,000 and $410,000 respectively in the prior year. The loan loss reserve is at 1.5 percent of net loans, versus 1.55 percent of net loans in the prior year. This decline is reflective of the lower levels of non-performing assets throughout the year. At quarter-end nonperforming assets totaled $1 million, up only slightly from the immediately preceding third quarter’s balance of $927,804 and a significant decline of $960,572 from the prior year’s fourth quarter balance of $1,960,421. The loan loss reserve also represents 270 percent coverage of total nonperforming assets.


Non-interest expense in the fourth quarter totaled $2.58 million an increase of 4.3 percent versus $ 2.48 million in the fourth quarter of last year. For the full year 2004 total non-interest expense was $9.98 million versus $9.13 million in 2003, an increase of $840,746 or 9.2 percent. Forty-five percent of the annual increase can be attributed to increases in staffing, a direct result of the overall growth of the bank, coupled with continuing enhancements to our employee health, benefit, and retirement plans. The remaining significant areas with increases were general other operating expenses, occupancy expenses, taxes and licenses, and advertising and public relations expense. The bank’s efficiency ratios for the quarter and year to date were 60.2 and 59.8 percent compared to 57.1 and 59.0 percent respectively for the prior year.




“The results for 2004 are indicative of sound earning asset and funding management. Despite our growth slowing, as anticipated, from the double digit levels in prior years, and ending 2004 at only 3.7 percent, we still increased our net income by 11.5 percent, increased capital by 11 percent, improved our return on shareholders equity to 14.8 percent, and maintained a respectable 1.18 percent return on assets.” commented Ralph Larry Lyons, President and CEO. “…we anticipate that favorable growth trends should increase in 2005, as will interest rate levels. Competition will be keen, and 2005 will be a challenging year, with the full financial impact of Sarbanes-Oxley, as well as the completion of construction and occupancy of our new main office and its related expense expected in the third quarter. In spite of any obstacles, I firmly believe we are up to the task at hand, and 2005 should prove to 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 31 year-old, $379 million community bank with its headquarters and two branches 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, 2004










Central Virginia Bankshares, Inc.

  

Fourth Quarter

 

12 Months Year to Date

  

(Unaudited)

 

(Unaudited)

  

2004

2003

 

2004

2003

       

Net Income

 

           1,193,298

1,123,153

 

       4,364,324

           3,913,765

Interest & Fees on Loans

 

           2,977,919

2,601,148

 

    11,122,815

        10,360,271

Interest on Investments

 

           2,272,763

2,398,547

 

       9,156,369

           8,151,984

Interest on Funds Sold

 

                23,734

1,953

 

            38,260

                30,802

Interest on Deposits

 

           1,556,116

1,528,573

 

       5,982,163

           5,928,852

Interest on Borrowings

 

              356,559

213,882

 

       1,363,285

              722,849

Net Interest Income (FTE)

 

           3,579,762

3,472,173

 

    13,839,362

        12,472,598

Non Interest Income

 

              709,810

865,334

 

       2,838,384

           3,003,791

Loan Loss Provision

 

                43,000

120,000

 

        414,500

              410,000

Interest Expense

 

           1,912,675

1,742,455

 

       7,345,448

         6,651,701

Non Interest Expense

 

           2,582,543

2,476,735

 

     9,975,205

         9,134,459

Period End Balances:

      

Investment Securities

 

         169,039,238

176,985,288

   

Fed Funds Sold

 

                          -   

5,000,000

   

Loans (net of Unearned Discount)

 

         179,932,177

158,504,366

   

Loan Loss Reserve

 

             2,698,622

2,454,443

   

Non  Interest Bearing Deposits

 

           41,046,290

36,150,140

   

Total Deposits

 

         309,946,969

300,720,514

   

Borrowings

 

           36,497,000

35,214,000

   

Assets

 

         379,276,193

365,834,702

   

Period End Shareholders Equity

 

           31,380,946

28,342,738

   

Average Balances:

      

Average Assets

 

         376,523,455

354,821,545

 

  369,501,834

      321,100,266

Average Earning Assets

 

         348,601,721

328,916,393

 

  341,839,984

      296,204,415

Investment Securities

 

         166,383,187

171,714,823

 

  167,271,349

      142,640,134

Federal Funds Sold

 

             5,289,196

695,283

 

       2,767,355

           2,981,277

Loans (net of Unearned Discount)

 

         176,193,506

155,698,769

 

  171,269,946

      149,611,876

Non Interest Bearing Deposits

 

           40,067,230

37,152,865

 

    38,567,126

        33,100,187

Total Deposits

 

         306,874,527

299,469,459

 

  300,772,675

      270,531,097

FHLB Overnight Advances

 

             4,586,957

5,000,000

 

       5,252,732

           5,000,000

FHLB Term Borrowings

 

           25,913,043

18,608,696

 

    24,939,891

        16,657,534

Fed Funds Purchased & REPO

 

             1,777,663

2,754,912

 

       2,894,884

           1,297,238

Average Shareholders Equity

 

           31,048,595

27,464,674

 

    29,487,242

        26,705,093

Average Shares Outstanding - Primary

 

             2,255,110

2,208,043

 

       2,243,527

           2,186,028

Average Shares Outstanding Fully Diluted

 

             2,301,185

2,252,262

 

       2,290,049

           2,269,919

Asset Quality:

      

Charged Off Loans

 

                  30,596

35,190

 

          213,796

              112,054

Recoveries

 

                  15,205

5,940

 

            43,475

                54,800

       

Period End:                                   Non-Accrual Loans

 

270,546

0

   

Loans Past Due 90 Days or More

 

604,783

1,723,421

   

Other Non Performing Assets

 

              124,520

              140,000

   

Other Real Estate

 

                          -   

                97,000

   

Total Non Performing Assets

 

              999,849 

           1,960,421

   

Per Share Data & Ratios:

      

Net Income Per Share - Basic

 

 $                  0.53

 $                  0.51

 

 $              1.95

 $                  1.79

Net Income Per Share - Diluted

 

 $                  0.52

 $                  0.50

 

 $              1.91

 $                  1.72

Period End Book Value Per Share

 

 $                13.87

 $                12.77

   

Return on Average Assets

 

1.27%

1.27%

 

1.18%

1.22%

Return on Average Equity

 

15.37%

16.36%

 

14.80%

14.66%

Efficiency Ratio

 

60.21%

57.10%

 

59.81%

59.02%

Average Loans to Average Deposits

 

57.42%

51.99%

 

56.94%

55.30%

Reserve for Loan Losses / Loans EOP

 

1.50%

1.55%

   

Net Interest Margin (FTE)

 

4.11%

4.22%

 

4.05%

4.21%