Central Virginia Bankshares Inc. (CVBK, Financial) filed Amended Annual Report for the period ended 2009-12-31.
Central Virginia Bankshares Inc. has a market cap of $6.56 million; its shares were traded at around $2.51 with a P/E ratio of 7.38 and P/S ratio of 0.23. Central Virginia Bankshares Inc. had an annual average earning growth of 5.3% over the past 5 years.
Loan Portfolio. The Company is an active residential mortgage and residential construction lender and also extends consumer loans to individuals and commercial loans to small and medium sized businesses within its primary service area. The Company s commercial lending activity extends across its primary service area of Powhatan, Cumberland, Goochland, western Chesterfield and western Henrico Counties. Consistent with its focus on providing community-based financial services, the Company does not attempt to diversify its loan portfolio geographically by making significant amounts of loans to borrowers outside of its primary service area; however, a number of loans have been made to borrowers located outside of the primary service area. The principal risk associated with each of the categories of loans in the Company s portfolio is the creditworthiness of borrowers, followed closely by the local economic environment. In an effort to manage this risk, the Bank s policy gives loan approval limits to individual loan officers based on their level of experience. Loans where the total borrower exposure to the Bank is less than $2,500,000 may be approved by the Bank s Senior Loan Committee. The Board of Directors of the Bank must approve loans where the total borrower exposure is in excess of $2,500,000. The risk associated with real estate mortgage loans and installment loans to individuals varies based upon employment levels, consumer confidence, fluctuations in value of residential real estate and other conditions that affect the ability of consumers to repay indebtedness. The risk associated with commercial, financial and agricultural loans varies based upon the strength and activity of the local economies of the Company s primary market areas. The risk associated with real estate construction loans varies based upon the supply of and demand for the type of real estate under construction, the mortgage loan interest rate environment, and the number of speculative properties under construction. The Bank manages that risk by focusing on pre-sold or contract homes, and limiting the number of “speculative” construction loans in its portfolio.
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Central Virginia Bankshares Inc. has a market cap of $6.56 million; its shares were traded at around $2.51 with a P/E ratio of 7.38 and P/S ratio of 0.23. Central Virginia Bankshares Inc. had an annual average earning growth of 5.3% over the past 5 years.
Highlight of Business Operations:
Central Virginia Bankshares, Inc. (the “Company”) hereby amends its Annual Report on Form 10-K for the fiscal year ended December 31, 2009 (originally filed with the Securities and Exchange Commission on April 15, 2010 and amended on April 30, 2010) as set forth in this Annual Report on Form 10-K/A (Amendment No. 2) (the “Amendment No. 2”). Subsequent to December 31, 2009 and in connection with an examination by our primary regulator, management completed a loan by loan impairment analysis of adversely classified loans. This analysis resulted in an increase of impaired loans and related valuation allowance at December 31, 2009 to $53,084,640 and $6,629,570, respectively, from previously reported amounts of $12,495,516 and $3,136,230, respectively. The total of these loans was appropriately included in the calculation of our loan loss allowance in our consolidated balance sheet at December 31, 2009 and in our provision for loan losses in our consolidated statement of income for the year ended December 31, 2009. However, we inadvertently failed to adjust our footnote disclosure for these subsequently identified impaired loans. Accordingly, we have adjusted the impaired loan tables in Notes 3 and 20 to our financial statements to properly reflect the correct impaired loan balance at December 31, 2009. In addition, we have revised Note 22 to our financial statements to identify these adjustments as a subsequent event. No adjustments were required to our financial statements or loss per share calculation. We also have concluded that the controls in place relating to the footnote disclosure were not properly designed to provide reasonable assurance that these impaired loans would be properly disclosed in the footnotes to the financial statements, and that this was a material weakness in internal control over financial reporting. Accordingly, we have revised “Item 9A – Controls and Procedures” to reflect this material weakness in internal control over financial reporting.Loan Portfolio. The Company is an active residential mortgage and residential construction lender and also extends consumer loans to individuals and commercial loans to small and medium sized businesses within its primary service area. The Company s commercial lending activity extends across its primary service area of Powhatan, Cumberland, Goochland, western Chesterfield and western Henrico Counties. Consistent with its focus on providing community-based financial services, the Company does not attempt to diversify its loan portfolio geographically by making significant amounts of loans to borrowers outside of its primary service area; however, a number of loans have been made to borrowers located outside of the primary service area. The principal risk associated with each of the categories of loans in the Company s portfolio is the creditworthiness of borrowers, followed closely by the local economic environment. In an effort to manage this risk, the Bank s policy gives loan approval limits to individual loan officers based on their level of experience. Loans where the total borrower exposure to the Bank is less than $2,500,000 may be approved by the Bank s Senior Loan Committee. The Board of Directors of the Bank must approve loans where the total borrower exposure is in excess of $2,500,000. The risk associated with real estate mortgage loans and installment loans to individuals varies based upon employment levels, consumer confidence, fluctuations in value of residential real estate and other conditions that affect the ability of consumers to repay indebtedness. The risk associated with commercial, financial and agricultural loans varies based upon the strength and activity of the local economies of the Company s primary market areas. The risk associated with real estate construction loans varies based upon the supply of and demand for the type of real estate under construction, the mortgage loan interest rate environment, and the number of speculative properties under construction. The Bank manages that risk by focusing on pre-sold or contract homes, and limiting the number of “speculative” construction loans in its portfolio.
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