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RICHMOND, Va., Oct. 30, 2013 (GLOBE NEWSWIRE) -- Xenith Bankshares, Inc. (Nasdaq:XBKS), parent company of Xenith Bank, a business-focused bank serving the Greater Washington, D.C., Richmond, and Greater Hampton Roads, Virginia markets, today announced financial results for the three and nine months ended September 30, 2013.
Net income was $748,000, or $0.07 per common share, for the three months ended September 30, 2013, compared to net income of $5.9 million, or $0.56 per common share, for the three months ended September 30, 2012. For the nine months ended September 30, 2013, net income was $1.7 million, or $0.16 per common share, compared to $7.0 million, or $0.67 per common share for the nine months ended September 30, 2012. Net income in both periods of 2013 reflected income tax expense, while net income in the comparable 2012 periods included a $5.0 million, or $0.47 per common share, tax benefit due to the reversal of the valuation allowance on the company's net deferred tax asset.
T. Gaylon Layfield, III, President and Chief Executive Officer, commented: "Xenith's financial results demonstrate the continued progress we have made in building a diversified portfolio of loans and deposits, while maintaining strong credit quality and time-tested underwriting standards. We are supporting our lending activities primarily with low-cost core deposits, which is having a positive impact on our cost of funds. We have purposely built an asset-sensitive balance sheet, which we believe positions the bank well in a rising interest rate environment."
Third Quarter, Nine Months 2013 Highlights
Reflecting improvement in core operations, net income before income tax in the third quarters of 2013 and 2012 was $1.2 million and $1.0 million, respectively, while net income before income tax in the nine months of 2013 and 2012 was $2.6 million and $2.1 million, respectively.
Net loans held for investment were $432.3 million at September 30, 2013, up 14%, compared to $379.0 million at December 31, 2012.
Average interest-earning assets in third quarter 2013 were $554.2 million, up 8% from $513.1 million in third quarter 2012.
Total assets at September 30, 2013 were $606.3 million, an increase of 7.6%, compared to $563.2 million at December 31, 2012.
Asset quality and coverage for loan losses remained strong at September 30, 2013, with ratios of nonperforming assets to total assets of 0.73%, nonperforming assets to loans held for investment of 1.02%, and an allowance for loan and lease losses to nonaccrual loans of 127%. Net charge-offs as a percentage of average loans held for investment were 0.15% for the nine-month period ended September 30, 2013.
Capital strength was reflected in ratios that were well above regulatory standards for "well-capitalized" banks, with a Tier 1 leverage ratio of 12.0%, a Tier 1 risk-based capital ratio of 13.8%, and a total risk-based capital ratio of 14.9% at September 30, 2013.
Reflecting shareholder value growth, tangible book value 1 at September 30, 2013 was $6.07 per common share, compared to $6.02 at December 31, 2012.
"Our primary approach to building value is to build a strong balance sheet that performs in a variety of economic and interest rate environments," Layfield explained. "We have invested in people, because long-term performance, sustainability, and growth require experienced revenue-generating loan officers, supported by a staff focused on outstanding execution. We believe that we have developed the technology and operational capability to drive growth while carefully monitoring credit quality and overall enterprise risk management. We focus closely on ensuring risk-adjusted loan pricing, because prudent growth is in our shareholders' best interest.