Village Bank and Trust Financial Corp. (VBFC)

[Enterprising Investor]

Village Bank and Trust Financial Corp reports $8.21 quarterly net income per share available to common shareholders (11/28/16)

Midlothian, Virginia, November 28, 2016. Village Bank and Trust Financial Corp. (the “Company”) (NASDAQ symbol: VBFC), parent company of Village Bank (the “Bank”), reported third quarter 2016 net income of $11,932,000, an improvement from net income of $659,000 for second quarter of 2016 and net income of $471,000 for the third quarter of 2015. Net income available to common shareholders, which deducts from net income the dividends on preferred stock, amounted to net income of $11,746,000, or $8.21 per fully diluted share, for the third quarter of 2016, and $301,000, or $0.21 per fully diluted share for the same period in 2015. For the nine months ended September 30, 2016, the Company had net income of $12,993,000 and net income available to common shareholders of $12,446,000, or $8.74 per fully diluted share, and $6,669,000, $6.17 per fully diluted share, for the same period in 2015. Net income and net income available to common shareholders for the three and nine months ended September 30, 2016 were positively impacted by the reversal of an $11,997,000 valuation allowance previously recorded against the net deferred tax asset. Netting this reversal against income tax expense for the first nine months of 2016 of $645,000 results in an income tax benefit of $11,352,000 for the three and nine months ended September 30, 2016. Net income available to common shareholders for the nine months ended September 30, 2015 was positively impacted by the forgiveness of principal and dividends on preferred stock amounting to $6,619,000 associated with the rights offering to shareholders and concurrent standby offering completed in March 2015.

https://www.sec.gov/Archives/edgar/data/1290476/000114420416136627/v453978_ex99-1.htm