Cordia Bancorp Inc - FORM 8-K/A - EX-99.2 - EXHIBIT 99.2 - June 14, 2013

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8-K/A - AMENDMENT TO FORM 8-K - Cordia Bancorp Incv347647_8ka.htm
EX-99.1 - EXHIBIT 99.1 - Cordia Bancorp Incv347647_ex99-1.htm

 

Exhibit 99.2

 

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 

The following unaudited pro forma condensed combined balance sheet as of December 31, 2012 and the unaudited pro forma combined statement of operations for the year ended December 31, 2012 have been presented to give effect to and show the pro forma impact on our historical financial statements of the issuance of 701,072 shares of common stock to the minority shareholders of BOVA in the share exchange.

 

On December 31, 2010, we consummated our controlling investment in BOVA. The results of operations of BOVA have been reflected in our consolidated financial statements from the date of consummation and, under the acquisition method of accounting, the assets and liabilities of BOVA have been reflected in our consolidated financial statements at their respective fair values as of the date of consummation. Under ASC 808 (Business Combinations), Cordia has recorded the full fair value of both the controlling and non-controlling interest of BOVA in its consolidated financial statements. Upon completion of the share exchange, Cordia will own 100% of BOVA and will push down the full fair value basis to BOVA’s separate financial statements in accordance with ASC 805-50-S99-2.

 

Our unaudited pro forma condensed combined balance sheet as of December 31, 2012 presents our consolidated financial position giving pro forma effect to (1) the issuance of 701,072 shares of common stock to the minority shareholders of BOVA as if the share exchange had occurred as of December 31, 2012 and (2) the sale of 900,000 and 4,000,000 shares of Cordia common stock at a price of $5.50 per share representing the minimum and maximum of a private placement offering that commenced on December 12, 2012. There can be no assurance that the private placement will be completed.

 

Our unaudited pro forma condensed combined statement of operations for the year ended December 31, 2012 present our consolidated results of operations giving pro forma effect to the issuance of 701,072 shares of common stock to the minority shareholders of BOVA as if the share exchange had occurred as of January 1, 2012.

 

The unaudited pro forma condensed combined financial information has been derived from and should be read in conjunction with:

 

·our historical audited financial statements as of and for the year ended December 31, 2012; and

 

·BOVA’s historical audited financial statements as of and for the year ended December 31, 2012.

 

The pro forma adjustments are based on available information and upon assumptions that our management believes are reasonable in order to reflect, on a pro forma basis, the impact of these transactions on our historical financial information. The unaudited pro forma condensed combined financial information is presented for illustrative purposes only and does not necessarily indicate the financial results of the combined companies had the combined companies actually been combined at the January 1, 2012. The adjustments included in these unaudited pro forma condensed financial statements are preliminary and may be revised.

 

 
 

 

UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET

As of December 31, 2012

 

(Dollars in thousands)  At December
31, 2012 (as
reported)		   Adjustments   At December
31, 2012 (pro
forma, as
adjusted for
share exchange)		   At December 31,
2012 (pro forma,
as adjusted at
minimum of
private
placement
offering)		   At December 31,
2012 (pro forma,
as adjusted at
maximum of
private
placement
offering)		 
Assets                         
Cash and cash equivalents  $11,981        $11,981   $16,481(4)  $32,481(5)
Securities available for sale, at fair market value   18,511         18,511    18,511    18,511 
Loans held for sale   28,949         28,949    28,949    28,949 
Loans, net of allowance of $2,110   110,960         110,960    110,960    110,960 
Premises and equipment   4,392         4,392    4,392    4,392 
Accrued interest receivable and other assets   3,903         3,903    3,903    3,903 
Total assets  $178,696        $178,696   $183,196   $199,196 
                          
Liabilities                         
Non-interest bearing deposits  $19,498        $19,498   $19,498   $19,498 
Interest-bearing deposits   134,930         134,930    134,930    134,930 
Total deposits   154,428         154,428    154,428    154,428 
Accrued expenses and other liabilities   11,129    92(3)   11,221    11,221    11,221 
Total liabilities   165,557         165,649    165,649    165,649 
                          
Stockholder' Equity                         
Preferred stock, $0.01 par value, 2,000 shares  authorized, none issued   -         -    -    - 
Common stock, $0.01 par value, 120,000,000 shares authorized, 2,077,605 shares outstanding (excluding 578,125 restricted shares)   21    7(1)   28    37(4)   68(5)
Additional paid-in capital   14,428    4,328(1)               
         (92)(3)   18,664    23,155(4)   39,124(5)
Retained deficit   (5,701)        (5,701)   (5,701)   (5,701)
Accumulated other comprehensive income   56         56    56    56 
Stockholders' equity Cordia Bancorp   8,804    4,335(1)   13,047    17,547    33,547 
Non-controlling interest   4,335    (4,335)(1)   -    -    - 
Total stockholders' equity   13,139         13,047    17,547    33,547 
Total liabilities and stockholders' equity   178,696         178,696    183,196    199,196 
                          
Share data                         
Shares outstanding at end of period   2,077,605    701,072(2)   2,778,677    3,678,677    6,778,677 
Book value per share   6.32         4.70    4.77    4.95 

 

 
(1)The share exchange results in the elimination of non-contolling interest at December 31, 2012 and the reclassification to common stock and additional paid-in capital on the exchange date.
(2)Reflects the issuance of 701,072 shares in the share exchange.
(3)Reflects the direct costs incurred to consumate the share exchange.
(4)Reflects the issuance of 900,000 shares of common stock at the price of $5.50 per share for net proceeds of approximately $4.5 million.
(5)Reflects the issuance of 4,000,000 shares of common stock at the price of $5.50 per share for net proceeds of approximately $20.5 million.

 

 
 

 

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

For the year ended December 31, 2012

 

(Dollars in thousands)  At December 31,
2012
(as reported)		   Adjustments   At December
31, 2012
(pro forma, as
adjusted for
share
exchange)		 
Total interest income  $8,441        $8,441 
Total interest expense   1,552         1,552 
Net interest income   6,889         6,889 
Provision for loan losses   588         588 
Net interest income after provision for  loan losses   6,301         6,301 
Total non-interest income   252         252 
              - 
Non-interest expense             - 
Salaries and employee benefits   3,680         3,680 
Occupancy expense   562         562 
Equipment expense   290         290 
Other operating expenses   2,747         2,747 
Total non-interest expense   7,279         7,279 
Consolidated net loss before non-controlling interest in net loss of consolidated subsidiary   (726)        (726)
Less:  non-controlling interest in net loss of consolidated subsidiary   (182)   182(1)   - 
Net loss attributable to Cordia Bancorp Inc.  $(544)       $(726)
Earnings per share - basic and diluted  $(0.32)  $0.02(1)  $(0.30)
Weighted average shares - basic   1,705,112    701,072(1)   2,406,184 
Weighted average shares - diluted   1,705,112    701,072(1)   2,406,184 

 

(1)Reflects the issuance of 701,072 shares in the share exchange between Cordia and minority shareholders.

 

 
 

 

Cordia Bancorp Inc Reports

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