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%. Select highlights:
- 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.