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RICHMOND, Va., Aug. 6, 2014 (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 six months ended June 30, 2014.
On June 30, 2014, the company completed the previously announced merger of Colonial Virginia Bank ("CVB") with and into Xenith Bank, with Xenith Bank being the surviving bank. The transaction is reflected in the company's consolidated balance sheet; however, because the transaction was completed after the close of business on June 30, 2014, there was no contribution of earnings from CVB in the second quarter.
Xenith Bankshares recorded a net loss of $205 thousand, or ($0.02) per common share, in the second quarter of 2014 , compared to net income of $552 thousand, or $0.05 per common share, in the second quarter of 2013. The net loss in the second quarter of 2014 was driven by merger-related costs (pre-tax $428 thousand) and a fraud loss from an ACH transaction (pre-tax $205 thousand). For the first six months of 2014, net income was $50 thousand, or $0.00 per common share, which includes merger-related costs (pre-tax $634 thousand), and the before-mentioned fraud loss (pre-tax $205 thousand) compared to $970 thousand, or $0.09 per common share, for the first six months of 2013. Results for the first half of 2014 reflected an effective income tax rate of 81% primarily resulting from the non-deductibility of certain merger-related transaction costs. Additionally, accretion from acquired loan discounts was lower for the second quarter and first half of 2014 compared to the same periods in 2013.
T. Gaylon Layfield, III, President and Chief Executive Officer, commented: "Xenith's core loan growth was strong in the first half of 2014. Through June our annualized loan growth was 22%, excluding loans acquired in the CVB transaction. CVB added an additional $70 million of loans to our balance sheet. We continue to focus sharply on lending to commercial and industrial and commercial real estate customers in our targeted markets, while building a balanced and diversified loan portfolio funded primarily by core deposits. Each investment we make is evaluated based on its meeting or exceeding our risk-adjusted return hurdles."