Some community banks still struggling
- August 2, 2010
Central Virginia Bankshares, Inc.
The Powhatan-based bank reported a net loss of $1.1 million, compared with a loss of $96,400 for the same period in 2009. After paying dividends on preferred stock, that translated into a loss of 48 cents a common share, compared to 10 cents per share, a year ago.
“We continued our efforts to maintain an adequate reserve for potential future loan losses by increasing our reserve by over $2.9 million during the second quarter, which obviously had a negative impact on our earnings,” COO Herb Martin, said in a statement.
He added that that the bank’s core earnings of $467,200 and deposits of $375.7 million — an increase of $2.3 million compared to the same period last year — continued to show strength. In June the bank entered in a formal written agreement with state and federal banking regulars to increase its capital.
Community Bankers Trust Corp.
The bank reported a net loss of $19.9 million, or 93 cents a share, compared to a loss of $23.6 million, $1.10 a share, for the same period in 2009.
It said the loss was driven by two major factors: $21.3 million set aside for loan loss provisions following an extensive loan review during the second quarter and a $5.7 million impairment charged related to the acquisitions of two banks in 2008.
The number of total impaired loans increased from $78.5 million at the end of the first quarter to $125.2 million at the end of the second quarter. The Henrico-County based bank is the holding company for Essex Bank, which has 25 offices in Virginia, Maryland and Georgia.
Middleburg Financial Corp.
The bank reported net income of $723,548 for the quarter. Highlights from the report:
Diluted earnings per share came in at 10 cents. The bank saw deposit growth of $53.4 million, or 6.6 percent, for the first six months of the year.
The provision for loan losses was $1.3 million, compared to $1.6 million for the same period in 2009, a decline of 18.4 percent. Yet for the entire first six months of 2010, the bank increased its allowance for loan losses by 9.6 percent or $890,000. Looking ahead, CEO Gary R. Shook said in a statement that “we foresee a continuation of problem loans throughout this year, which will continue to impact earnings.”