Gloucester-based Colonial Virginia Bank reported net income before taxes of $78,861 and $68,361 after taxes, or 11 cents per share assuming dilution, for the quarter that ended on June 30, according to president Bob Bailey.
That figure is lower than the 2010 second-quarter figure of pre-tax net income of $162,674 and $111,974 after taxes, or 18 cents/share, he added.
Bailey recently succeeded Bill Farinholt as CVB’s president and chief executive officer. Farinholt retired June 30 after a long career in banking, having helped establish two Gloucester-based banks: Peninsula Trust Bank and more recently Colonial Virginia Bank.
Return on average assets was 0.24 percent for the current quarter compared to 0.37 percent for second quarter 2010, said Kenny Smith, the bank’s executive vice president and chief financial officer. Return on average equity was 2.45 percent for second quarter 2011 and 3.79 percent for the three months ending June 30, 2010.
"The decline in the current quarter was due primarily to an escalation in loan-charge-offs, Smith said. Although the federal government might say the country is no longer in a recession, Smith said he sees many people having difficulty paying off their loans and some are having to default on them.
Linked to the loan charge-offs, Smith said, is the continuing overall weak employment for the region, with some CVB customers having lost or about to lose their jobs.