ROANOKE, Va., April 25, 2014 (GLOBE NEWSWIRE) -- Valley Financial Corporation (Nasdaq:VYFC) announced today its consolidated financial results for the first quarter of 2014 and reported net income available to common shareholders for the three months ended March 31, 2014 of $1,516,000, a 3% increase as compared to $1,466,000 for the prior year's first quarter. Diluted earnings per share also increased 3% to $0.31 as compared to $0.30 for the first quarter of 2013. The Company's earnings for the three months ended March 31, 2014 produced an annualized return on average total assets of 0.73% and an annualized return on average shareholder's equity of 11.24% as compared to 0.89% and 10.74% for the prior year's quarter. In comparison to the linked quarter, net income available to common shareholders increased $273,000 or 22.0% while diluted earnings per share increased $0.06 or 24.0%.
- Net income to common shareholders of $1,516,000 and $0.31 per diluted share, producing a return on average total assets of 0.73% and annualized return on average shareholder's equity of 11.24%.
- Tax-equivalent net interest income of $7,007,000, a $349,000 or 5% increase over the prior year's quarter.
- Due to the Company's full redemption of TARP during 2013, preferred dividends paid were $0 for the first quarter of 2014 as compared to $227,000 during the same period last year.
- Nonperforming assets ("NPAs") decreased $968,000, from $26,292,000 at December 31, 2013 to $25,324,000 at March 31, 2014. This resulted in a 27 basis point reduction in the Company's NPAs as a percentage of total assets, from 3.19% at December 31, 2013 to 2.92% at March 31, 2014.
- The Company's Allowance for Loan and Lease Losses ("ALLL") to total loans decreased from 1.26% at December 31, 2013 to 1.10% at March 31, 2014. The reduction in the ALLL is primarily attributable to the charge-off of specific reserves that were previously reserved on our impaired loans and improving credit quality metrics.
- Loan demand continued to improve with an increase in average loans outstanding of $28,710,000 or 5% from the same period last year and $16,139,000 in comparison to the linked quarter, putting us on track for an 11% annualized loan growth rate for 2014.
Additionally, the Company announced today that its Board of Directors declared a quarterly cash dividend of $0.04 per share, payable on June 2, 2014 to its common shareholders of record on May 15, 2014. The amount and declaration of future cash dividends are subject to Board of Director's approval.