Virginia Partners Bank, a fast-growing bank based in Fredericksburg, reported net income of $719,000 for the fourth quarter of 2018.
That’s a 215.6 percent increase compared to the net loss of $622,000 for the same period in 2017. The bank also reported a total net income of $2.7 million last year, a 298.1 percent increase compared to a total net income of $666,000 in 2017.
Virginia Partners Bank is expected to become an independent, wholly owned subsidiary of Salisbury, Md.-based Delmar Bancorp through an exchange of shares in an all-stock transaction in the second quarter of 2019. Delmar Bancorp is the holding company for The Bank of Delmarva, which has its main office in Seaford, Del. It has 11 branch locations in Maryland and three operating under the name Liberty Bell Bank in the South Jersey/Philadelphia metro market.
Excluding $280,000 tax-effected expense of the pending merger, Virginia Partners’ adjusted net income (Non-GAAP) was $999,000 and $2.9 million for the fourth quarter and the year, respectively. That’s a $171,000, or 20.7 percent increase in the fourth quarter of 2018 compared to the preceding quarter.
“A significant portion of our net income improvement quarter over quarter was due to our efforts to reduce noninterest expense,” said Lloyd B. Harrison, Virginia Partners Bank president and CEO, in a news release. “Excluding merger expense, we were able to reduce our total non-interest expense by $137,000 or 4.6 percent during the fourth quarter of 2018, as compared to the third quarter of 2018. Although loan production was strong during the fourth quarter of 2018, loan growth was essentially flat due to several large pay-offs which occurred late in the period.
“Despite this, our total loan growth over the full year 2018 was 10.8 percent, which outpaced our internal targets. We are very excited about the growth activity we are seeing in our existing markets and our current pipeline of opportunities. We believe this growth activity, combined with our emphasis on total relationship banking, positions us to deliver solid growth and increased profitability in 2019.”