EX-99.1 2 ex99.htm ex99.htm
Exhibit 99.1

PRESS RELEASE - FOR IMMEDIATE DISTRIBUTION

Dated:  April 19, 2010

Quarterly Earnings Results Reported by Citizens Bancorp

[Blackstone, Virginia]    Citizens Bancorp of Virginia, Inc. (the “Company”) (OTCBB: CZBT), the parent company of Citizens Bank and Trust Company (the “Bank”), reported net income of $608 thousand, or $0.26 per share for the quarter ended March 31, 2010.  Net income for the first quarter of 2009 was $710 thousand, which was $0.30 per share or $0.04 greater than the same quarter for 2010.  The return on average assets for the three months ended March 31, 2010 was 0.76% as compared to the same period in 2009 when the return was 0.95%.  The Company also reported consolidated total assets of $326.4 million or an increase of $5.4 million or 1.7% from the $321.0 million at December 31, 2009.  Year-over-year total asset growth at March 31, 2010 was $19.9 million or 6.5% greater than at March 31, 2009.  The economic recession’s prolonged effects on borrowers and higher FDIC insurance premiums continue to plague financial institutions, nationwide.  The Bank’s quarterly earnings were affected by a higher level of non-accrual loans, a higher provision for loan losses, lower non-interest income and higher deposit insurance costs.

The Company’s fully tax-equivalent net interest margin improved to 4.10% for the three months ended March 31, 2010 as compared to 3.96% and 3.98% for the three months ended March 31, 2009 and December 31, 2009, respectively.  The net interest margin improved primarily due to the 55 basis point decrease in the cost of interest bearing deposits which was 1.94% for the quarter ended March 31, 2010 as compared to 2.49% for the year-ago period.  Non-accrual loans averaged $5.6 million for the quarter-ended March 31, 2010 as compared to $1.4 million and $4.8 million for the quarters ended March 31, 2009 and December 31, 2009, respectively.

Management recorded $300 thousand in provision for the allowance for loan losses during the quarter ended March 31, 2010; this compares to $45 thousand in the year-ago quarter ended March 31, 2009 and $475 thousand in the quarter-ended December 31, 2009.  While the rate of increase in non-accrual loans has slowed, management recognizes that many borrowers will continue to struggle until an economic recovery takes hold and this is the primary reason for additional provision during the quarter.   Improving economic conditions are likely to bring about a healthier credit environment for borrowers and management expects that this is likely to reduce the amount of loan loss provision required for the remainder of the year.

Non-interest income for the first quarter ended March 31, 2010 was $557 thousand as compared to $597 thousand and $681 thousand for the three months ended March 31, 2009 and December 31, 2009, respectively.  The decrease of $40 thousand from the quarter ended March 31, 2009 to March 31, 2010 is attributed to $26 thousand decline in deposit account fees, $12 thousand decline in gains on sale of loans, and $24 thousand decrease in other income.  The decline in other income was due to a one-time rebate of $20 thousand received in March 2009.  Offsetting these decreases in non

Page  of 1 of 5
 
 
 

interest income was $23 thousand increase in ATM fee income for the quarter ended March 31, 2010 as compared to the year-ago quarter.

Non-interest expense totaled $2.368 million for the three months ended March 31, 2010, which is $136 thousand or 6.1% greater than the period ended March 31, 2009.  The reported year-over-year increase is primarily due to higher FDIC deposit insurance premiums in the amount of $88 thousand and a $47 thousand increase related to costs associated with employee salaries and benefits.

President and CEO, Joseph D. Borgerding commented, “Management is pleased with the Bank’s growth and improvement in the net interest margin which contributed to an increase in net interest income of $269 thousand for the first quarter of 2010.  The Bank continues to take a conservative approach in providing for potential loan losses; however, we are hopeful that loan losses may stabilize if economic conditions continue to improve.”

Citizens Bank and Trust Company was founded in 1873 and is the second oldest independent bank in Virginia.  The Bank has eleven offices in the Counties of Amelia, Chesterfield, Mecklenburg, Nottoway and Prince Edward, along with one branch in the city of Colonial Heights and one in the Town of South Hill, Virginia.  Citizens Bancorp of Virginia, Inc. is a single bank holding company headquartered in Blackstone, Virginia and the Company’s stock trades on the OTC Bulletin Board under the symbol “CZBT”.  Additional information on the Company is also available at its web site: www.cbtva.com.

Citizens Bancorp of Virginia, Inc. cautions readers that certain statements in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Although the Company believes that its expectations with respect to these forward-looking statements are based upon reasonable assumptions within the bounds of its business operations, there can be no assurance that the actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.  For more details on factors that could affect expectations, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 and its other filings with the Securities and Exchange Commission.


Page  of 2 of 5
 
 
 



CITIZENS BANCORP OF VIRGINIA, INC. AND SUBSIDIARY
Consolidated Balance Sheet
(Dollars in thousands, except share data)

   
March 31,
    
December 31,
  
   
2010
    
2009
  
Assets
        
 
  
             
Cash and due from banks
   $ 7,045     $ 6,339  
Interest-bearing deposits in banks
     1,081       1,108  
Federal funds sold
     7,519       9,588  
Securities available for sale, at fair market value
     77,896       66,778  
Restricted securities
     1,189       1,189  
Loans, net of allowance for loan losses of $2,911
                
and $2,673
     210,695       214,862  
Premises and equipment, net
     7,466       7,544  
Accrued interest receivable
     1,856       1,860  
Other assets
     10,412       10,637  
Other real estate owned
     1,197       1,073  
                 
Total assets
   $ 326,356     $ 320,978  
                 
Liabilities and Stockholders' Equity
                
                 
Liabilities
                
Deposits:
                
Noninterest-bearing
   $ 34,646     $ 33,999  
Interest-bearing
     238,090       234,797  
Total deposits
   $ 272,736     $ 268,796  
FHLB advances
     5,000       5,000  
Other borrowings
     6,285       5,483  
Accrued interest payable
     951       955  
Accrued expenses and other liabilities
     2,063       1,754  
Total liabilities
   $ 287,035     $ 281,988  
                 
                 
Stockholders' Equity
                
   Preferred stock, $0.50 par value; authorized 1,000,000 shares;
                
       none outstanding
   $ -     $ -  
Common stock, $0.50 par value; authorized 10,000,000 shares;
                
issued and outstanding, 2,365,239 for 2010 and 2,371,139 for 2009
     1,183       1,186  
Additional paid-in capital
     - -       - -  
Retained earnings
     38,319       38,177  
Accumulated other comprehensive loss
     (181 )     (373 )
Total stockholders' equity
   $ 39,321     $ 38,990  
                 
Total liabilities and stockholders' equity
   $ 326,356     $ 320,978  



Page  of 3 of 5
 
 
 

CITIZENS BANCORP OF VIRGINIA, INC. AND SUBSIDIARY
Consolidated Statements of Income
(Dollars in thousands, except per share data)

   
Three Months Ended
  
   
March 31,
  
   
2010
    
2009
  
Interest and Dividend Income
            
  Loans, including fees
     3,420       3,457  
  Investment securities:
                
Taxable
     498       368  
Tax-exempt
     160       137  
  Federal Funds sold
     5       5  
  Other
     4       57  
Total interest and dividend income
     4,087       4,024  
                 
Interest Expense
                
  Deposits
     1,131       1,315  
  Borrowings
     37       59  
Total interest expense
     1,168       1,374  
                 
      Net interest income
     2,919       2,650  
                 
Provision for loan losses
     300       45  
                 
Net interest income after provision
                
       for loan losses
     2,619       2,605  
                 
Noninterest Income
                
  Service charges on deposit accounts
     261       287  
  Net gain on sales of securities
     4       3  
  Net gain on sales of loans
     10       22  
  Income from bank owned life insurance
     68       70  
  ATM fee income
     150       127  
  Other
     64       88  
Total noninterest income
     557       597  
                 
Noninterest Expense
                
  Salaries and employee benefits
     1,364       1,317  
  Net occupancy expense
     153       147  
  Equipment expense
     131       144  
  FDIC deposit insurance
     156       68  
  Other
     564       556  
Total noninterest expense
     2,368       2,232  
 
                
   Income before income taxes
     808       970  
                 
       Income taxes
     200       260  
                 
   Net income
     608       710  
    Earnings per share, basic & diluted
     0.26       0.30  
 
 


Page  of 4 of 5
 
 
 

CITIZENS BANCORP OF VIRGINIA, INC. AND SUBSIDIARY
Consolidated Regulatory Capital Ratios
And Performance Ratios


(Dollars in thousands, except per share data)

   
Three Months Ended
  
   
March 31,
2010
    
December 31,
2009
    
September 30, 2009
    
June 30,
2009
    
March 31,
2009
  
                               
                               
Per Share Data:
                              
                               
Earnings per weighted average share
   $ 0.26     $ 0.25     $ 0.32     $ 0.32     $ 0.30  
                                         
Weighted average shares outstanding
     2,368,932       2,374,164       2,377,151       2,382,050       2,388,290  
                                         
Actual shares outstanding
     2,365,239       2,371,139       2,377,030       2,377,330       2,383,380  
                                         
Book value per share  at period end
   $ 16.62     $ 16.44     $ 16.10     $ 15.63     $ 15.46  
                                         
Dividend per share
   $ 0.17     $ 0.17     $ 0.17     $ 0.17     $ 0.17  
                                         
Performance Ratios:
                                        
                                         
Return on average assets
     0.76 %     0.75 %     0.97 %     0.95 %     0.95 %
                                         
Net interest margin, (FTE)
     4.10 %     3.98 %     3.96 %     4.07 %     3.96 %
                                         
Efficiency ratio1
     68.14 %     64.84 %     65.78 %     66.57 %     68.72 %
                                         
Capital and Other Ratios:
                                        
(Ratios are period end, unless stated otherwise)
                          
Tier 1 leverage ratio
     12.49 %     12.33 %     12.38 %     12.53 %     12.69 %
                                         
Total risk-based capital ratio
     21.08 %     20.76 %     20.72 %     20.32 %     20.80 %
                                         
Allowance for loan losses to total loans
     1.36 %     1.23 %     1.10 %     1.06 %     1.01 %
                                         
Non-accruing loans to total loans
     2.67 %     2.42 %     2.00 %     1.77 %     0.81 %
                                         
Net charge-offs (net recoveries) to average loans (annualized)
     0.12 %     0.33 %     0.22 %     0.13 %     0.04 %

1 Computed by dividing noninterest expense by the sum of net interest income and noninterest income.

CONTACT:
Ronald E. Baron
 
SVP and Chief Financial Officer
 
Voice: 434-292-8100 or E-mail: Ron.Baron@cbtva.com
**********************************************************************


Page  of 5 of 5