Xenith Bankshares, Inc. (Nasdaq:XBKS), parent company of Xenith
Bank, today announced financial results for the first quarter ended
March 31, 2017.
The company reported net income of $5.66 million, or $0.24 per
diluted share ($0.25 per diluted share from continuing operations),
for the first quarter of 2017 compared to $1.38 million, or $0.08
per diluted share ($0.06 per diluted share from continuing
operations), for the first quarter of 2016. Net income in 2017
included $250 thousand of merger-related expenses compared to $1.57
million in the first quarter of 2016.
The company reported net income of $5.17 million, or $0.22 per
diluted share ($0.22 per diluted share from continuing operations),
for the fourth quarter of 2016, which included $1.16 million of
merger-related costs.
Information for 2016 includes the operations of legacy Xenith
Bankshares, Inc. (“legacy Xenith”) only for the period immediately
following the effective date of the merger, July 29, 2016, of
legacy Xenith with and into the company (the “merger”) as of and
through the applicable period ends. On October 17, 2016, the
company completed the sale of its mortgage banking business
conducted through its wholly-owned subsidiary, Gateway Bank
Mortgage, Inc. (“GBMI”). The operations of GBMI have been reported
as discontinued operations for all periods presented herein.
All amounts based on the company’s common shares have been
adjusted to reflect the 1-for-10 reverse stock split, which was
effective on December 13, 2016.
First Quarter 2017 Financial Highlights
- For the quarter ended March 31, 2017, income before income
taxes from continuing operations was $8.44 million. Income before
income taxes in 2017 included $250 thousand of merger-related
expenses.
- Net interest income for the quarter ended March 31, 2017 was
$24.85 million including $1.02 million of accretion of acquired
loan discounts.
- Net interest margin for the quarter ended March 31, 2017 was
3.49%. Net interest margin excluding accretion of acquired loan
discounts was 3.35%.
- Net loans were $2.34 billion at March 31, 2017 and provision
for loan losses was negligible for the quarter ended March 31,
2017.
- Total average interest-earning assets in the first quarter of
2017 were $2.90 billion.
- Total assets at March 31, 2017 were $3.20 billion.
- Total deposits at March 31, 2017 were $2.62 billion.
- At March 31, 2017, the ratio of nonperforming assets to total
assets was 0.98%. The ratio of the allowance for loan losses
(“ALL”) to gross loans was 0.78%, and the ratio of the ALL plus
remaining discounts on acquired loans as a percentage of gross
loans was 1.10%1.
- Net charge-offs as a percentage of average loans were 0.15% for
the quarter ended March 31, 2017.
- Other real estate owned and repossessed asset balance was $5.19
million at March 31, 2017.
- The company’s capital ratios remained well above regulatory
standards for "well-capitalized" bank holding companies, with a
Common Equity Tier 1 Capital Ratio of 12.75%, a Tier 1 Leverage
Ratio of 11.24%, a Tier 1 Risk-Based Capital Ratio of 12.92%, and a
Total Risk-Based Capital Ratio of 13.91% at March 31, 2017. Xenith
Bank had a Common Equity Tier 1 Capital Ratio of 11.93%, a Tier 1
Leverage Ratio of 10.36%, a Tier 1 Risk-Based Capital Ratio of
11.93%, and a Total Risk-Based Capital Ratio of 12.61%. These
capital ratios exclude approximately $95 million in disallowed
deferred tax assets as required by the Basel III rules.
- Total shareholders' equity was $470.49 million at March 31,
2017. Book value and tangible book value per common share at March
31, 2017 were $20.32 and $19.001, respectively. Return on average
assets was 0.71% and return on average common equity was 4.90% for
the quarter ended March 31, 2017.
T. Gaylon Layfield, III, the company’s Chief Executive Officer,
commented: “As we continue our merger integration, we are seeing a
number of positive trends. They include net interest margin
expansion helped by holding the line on deposit costs, a slightly
more asset-sensitive balance sheet, continued progress on measures
of asset quality, and our ability to attract high quality bankers
in selected markets. More than $1 million in non-recurring expenses
plus merger-related expenses in the first quarter did impact our
efficiency ratio, but with our considerable focus across the bank
on driving efficiencies, I believe overall improvement will
continue. As has been the case historically, the first quarter of
the year did not result in the kind of loan growth that we have
typically generated over the course of the year. On the plus
side, most of the loan reduction we experienced in the first
quarter was in low-margin and non-core loans. Our pipeline looks
sound, especially in the Richmond and Greater Washington
markets. Our loan-to-deposit ratio has improved to 90%
reflecting non-core loan contraction and good core deposit growth.
Key balance sheet metrics around capital and liquidity and low
reliance on wholesale funding provide a solid platform for core
loan growth and help reduce the pressure to raise deposit rates as
market interest rates continue their upward march.”
Operating Results
First Quarter 2017 Compared to First Quarter 2016
Total interest income for the three months ended March 31, 2017
was $29.66 million compared to $17.98 million for the three months
ended March 31, 2016. For the three-month period of 2017, total
interest income reflected average interest-earning assets of $2.90
billion compared to $1.82 billion in interest-earning assets in the
same period of 2016. Asset yields in the 2017 period were 4.17%
compared to yields of 4.00% in the 2016 period. Accretion from
acquired loan discounts was $1.02 million in the first quarter of
2017 compared to zero in the first quarter of 2016.
Total interest expense for the three months ended March 31, 2017
was $4.81 million compared to $3.22 million for the three months
ended March 31, 2016. Average interest-bearing liabilities in the
2017 period increased to $2.26 billion from $1.44 billion in the
same period of 2016. The cost of liabilities was 0.86% in the 2017
period compared to 0.90% in the 2016 period.
Net interest margin in first quarter of 2017 was 3.49% compared
to 3.30% in first quarter of 2016. Net interest margin excluding
accretion of acquired loan discounts was 3.35% in the first quarter
of 2017 compared to 3.30% in the first quarter of 2016.
Net interest income after provision for loan losses was $24.84
million for the three months ended March 31, 2017 compared to
$14.79 million in the same period of 2016. Provision for loan
losses was negligible in both periods.
Total noninterest income was $3.13 million in the first quarter
of 2017 compared to $2.51 million in the first quarter of 2016.
Noninterest income in 2017 included higher income from the
company’s back-to-back interest swap program, higher Visa check
card income, and higher earnings from bank-owned life
insurance.
Noninterest expense in the first quarter of 2017 was $19.53
million compared to $15.53 million in the first quarter of 2016.
First quarter 2017 noninterest expense included $250 thousand of
merger-related costs compared to $1.59 million in the 2016 period.
The company’s efficiency ratio (defined as noninterest expense
divided by the sum of net interest income and noninterest income
from continuing operations) for the first quarter of 2017 was 70%
(69%1 excluding merger-related costs) compared to 90% for the first
quarter of 2016 (81%1 excluding merger-related costs).
First Quarter 2017 Compared to Fourth Quarter 2016
Total interest income for the three months ended March 31, 2017
and December 31, 2016 was $29.66 million and $28.97 million,
respectively. For the first quarter of 2017, total interest income
reflected average interest-earning assets of $2.90 billion compared
to $2.96 billion in interest-earning assets in the fourth quarter
of 2016. Asset yields were 4.17% in the first quarter of 2017
compared to asset yields of 3.89% in the last quarter of 2016.
Accretion of discounts from acquired loans was $1.02 million in the
first quarter of 2017 and $1.41 million in the fourth quarter of
2016.
Total interest expense for the three months ended March 31, 2017
and December 31, 2016 was $4.81 million and $4.83 million,
respectively. Average interest-bearing liabilities in the first
quarter of 2017 were $2.26 billion compared to $2.31 billion in the
fourth quarter of 2016. The cost of interest-bearing deposits was
0.76% and 0.75% in the first quarter of 2017 and the fourth quarter
of 2016, respectively. Total deposits increased $47.67 million, or
1.85%, from December 31, 2016 to March 31, 2017. The cost of total
liabilities was 0.86% and 0.83% in the first quarter of 2017 and
fourth quarter of 2016, respectively. The higher cost of total
liabilities in the first quarter of 2017 was the result of
reductions in less expensive short-term borrowings from the Federal
Home Loan Bank of Atlanta.
Net interest margin in the first of quarter 2017 was 3.49%
compared to 3.27% in the fourth quarter of 2016. Net interest
margin excluding accretion of acquired loan discounts was 3.35% in
the first quarter of 2017 compared to 3.08% in the fourth quarter
of 2016.
Net interest income after provision for loan losses was $24.84
million for the three months ended March 31, 2017 compared to
$23.51 million in the three months ended December 31, 2016. Net
interest income after provision expense for loan losses in the
first quarter of 2017 reflected negligible loan loss provision,
while net interest income after provision expense for loan losses
in the fourth quarter of 2016 included $625 thousand in loan loss
provision. Gross loans declined from $2.46 billion at December 31,
2016 to $2.36 billion at March 31, 2017. Some of the decline in
loans resulted from the normal amortization of residential real
estate loans and pay-off of construction loans, offset by solid
growth in the company’s marine lending division, Shore Premier
Finance. Additional loan reductions were in loans associated with
mortgage warehouse participations with two banks and the sale of a
portion of the company’s guaranteed student loan
portfolio.
Total noninterest income was $3.13 million in both the first
quarter of 2017 and the fourth quarter of 2016.
Noninterest expense in the first quarter of 2017 was $19.53
million compared to $18.46 million in the fourth quarter of 2016.
First quarter 2017 included $250 thousand of merger-related costs
compared to $1.16 million of merger-related costs in the fourth
quarter of 2016. The company’s efficiency ratio for the first
quarter of 2017 was 70% (69%1 excluding merger-related costs)
compared to 68% (63%1 excluding merger-related costs) for the
fourth quarter of 2016.
Asset and Credit Quality
At March 31, 2017, the ratio of nonperforming assets to total
assets was 0.98%, the ratio of nonperforming loans to gross loans
was 1.11%, and the ratio of the company’s ALL to nonaccrual loans
was 69.8%. Net charge-offs as a percentage of average loans were
0.15%. ALL as a percentage of gross loans was 0.78%, at March 31,
2017, and this ratio including acquisition fair value adjustments
(adjusted ALL/ gross loans) was 1.10%1.
Capital and Shareholder Value Measures
The company’s capital ratios remained well above regulatory
standards for "well-capitalized" bank holding companies, with a
Common Equity Tier 1 Capital Ratio of 12.75%, a Tier 1 Leverage
Ratio of 11.24%, a Tier 1 Risk-Based Capital Ratio of 12.92%, and a
Total Risk-Based Capital Ratio of 13.91% at March 31, 2017. Xenith
Bank had a Common Equity Tier 1 Capital Ratio of 11.93%, a Tier 1
Leverage Ratio of 10.36%, a Tier 1 Risk-Based Capital Ratio of
11.93%, and a Total Risk-Based Capital Ratio of 12.61%. These
capital ratios exclude approximately $95 million in disallowed
deferred tax assets as required by the Basel III rules.
Total shareholders' equity was $470.49 million at March 31,
2017. Book value and tangible book value per common share at March
31, 2017 were $20.32 and $19.001, respectively. Return on average
assets was 0.71% and return on average common equity was 4.90% for
the quarter ended March 31, 2017.
Outlook
Layfield concluded: “As I look to the remainder of 2017, I
expect growth in our core loan portfolios to accelerate with
reduced impact from declining non-core categories. With respect to
commercial real estate lending, we remain focused on its cyclical
nature and the importance of proactive loan management. That said,
we are well within regulatory guidelines and our own internal loan
limits for this asset class, and believe we are in a position to
pursue high quality real estate lending in all our target markets.
Our expertise in commercial and industrial lending should continue
to support profitable growth as well. We will continue our efforts
to gain efficiencies across all operating areas of the bank. With
our asset sensitivity, any increase in interest rates should
translate into modest improvement in net interest margin. The
combination of these efforts should enable Xenith to continue on
its path to improved earnings and enhanced shareholder value.”
About Xenith Bankshares, Inc.
Xenith Bankshares, Inc. (“XBKS”) is the holding company for
Xenith Bank, a full-service commercial bank headquartered in
Richmond, Virginia. Xenith Bank specifically targets the banking
needs of middle market and small businesses, local real estate
developers and investors, and retail banking clients. XBKS also
offers marine finance floorplan and end-user products through its
Shore Premier Finance division. Xenith Bank’s regional area of
operations spans from greater Baltimore, Maryland to Raleigh and
eastern North Carolina, complementing its significant presence in
Greater Washington, D.C., Greater Richmond, Virginia, Greater
Hampton Roads, Virginia and on the Eastern Shore of Maryland and
Virginia. Xenith Bank has 42 full-service branches and two loan
production offices located across these areas with its headquarters
centrally located in Richmond. XBKS’s common stock trades on The
NASDAQ Stock Market under the symbol “XBKS.”
Additional information about XBKS and its subsidiaries can be
found at www.xenithbank.com.
Caution About Forward-Looking
Statements
All statements other than statements of historical facts
contained in this press re are forward-looking statements.
Forward-looking statements made in this press re reflect beliefs,
assumptions and expectations of future events or results, taking
into account the information currently available to XBKS. These
beliefs, assumptions and expectations may change as a result of
many possible events, circumstances or factors, not all of which
are currently known to XBKS. If a change occurs, XBKS’s business,
financial condition, liquidity, results of operations and prospects
may vary materially from those expressed in, or implied by, the
forward-looking statements. Accordingly, you should not place undue
reliance on these forward-looking statements. Factors include among
others: difficulties and delays in integrating the combination of
the legacy Hampton Roads Bankshares and legacy Xenith businesses or
fully-realizing cost savings and other benefits; business
disruptions following the merger; changes in asset quality and
credit risk; the inability to sustain revenue and earnings growth;
changes in interest rates and capital markets; inflation; customer
borrowing, repayment, investment and deposit practices; customer
disintermediation; the introduction, withdrawal, success and timing
of business initiatives; competitive conditions; the inability to
realize cost savings or revenues or to implement integration plans
and other consequences associated with mergers, acquisitions and
divestitures; economic conditions; the inability to realize
deferred tax assets within expected time frames or at all; and the
impact, extent and timing of technological changes, capital
management activities and other actions of the Federal Reserve
Board and legislative and regulatory actions and reforms; and the
risks discussed in XBKS’s public filings with the Securities and
Exchange Commission, including those outlined under “Risk Factors”
in XBKS’s Annual Report on Form 10-K for the year ended
December 31, 2016. Except as required by applicable law or
regulations, XBKS does not undertake, and specifically disclaims
any obligation, to update or revise any forward-looking
statement.
1 Please see the discussion of non-GAAP financial measures at
the end of the financial tables.
| Xenith Bankshares, Inc. |
|
| Consolidated Balance Sheets |
|
| As of March 31, 2017 and December 31,
2016 |
|
| (unaudited) |
|
|
|
|
| (in thousands, except
share data) |
March 31, 2017 |
|
December 31, 2016 |
|
|
Assets |
|
|
|
|
| Cash and
due from banks |
$ |
16,187 |
|
|
$ |
18,825 |
|
|
|
Interest-bearing deposits in other banks |
|
7,593 |
|
|
|
4,797 |
|
|
| Overnight
funds sold and due from Federal Reserve Bank |
|
156,361 |
|
|
|
103,372 |
|
|
|
Investment securities available for sale, at fair value |
|
318,741 |
|
|
|
317,443 |
|
|
|
Restricted equity securities, at cost |
|
19,296 |
|
|
|
24,313 |
|
|
|
Loans |
|
2,356,808 |
|
|
|
2,464,056 |
|
|
| Allowance
for loan losses |
|
(18,275 |
) |
|
|
(21,940 |
) |
|
| Net
loans |
|
2,338,533 |
|
|
|
2,442,116 |
|
|
| Premises
and equipment, net |
|
56,371 |
|
|
|
56,996 |
|
|
| Interest
receivable |
|
8,487 |
|
|
|
8,806 |
|
|
| Other
real estate owned and repossessed assets, |
|
|
|
|
| net of
valuation allowance |
|
5,185 |
|
|
|
5,345 |
|
|
|
Goodwill |
|
26,931 |
|
|
|
26,931 |
|
|
| Core
deposit intangible, net |
|
3,656 |
|
|
|
3,787 |
|
|
| Net
deferred tax assets, net of valuation allowance |
|
154,899 |
|
|
|
157,825 |
|
|
|
Bank-owned life insurance |
|
72,580 |
|
|
|
72,104 |
|
|
| Other
assets |
|
13,760 |
|
|
|
13,969 |
|
|
| Assets of
discontinued operations |
|
— |
|
|
|
10,563 |
|
|
|
Totals assets |
$ |
3,198,580 |
|
|
$ |
3,267,192 |
|
|
| Liabilities and
Shareholders' Equity |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest-bearing demand |
$ |
535,889 |
|
|
$ |
501,678 |
|
|
|
Interest-bearing: |
|
|
|
|
| Demand
and money market |
|
1,148,199 |
|
|
|
1,113,453 |
|
|
|
Savings |
|
91,605 |
|
|
|
86,739 |
|
|
| Time
deposits Less than $250 |
|
773,158 |
|
|
|
785,303 |
|
|
| Time
deposits $250 or more |
|
70,792 |
|
|
|
84,797 |
|
|
| Total
deposits |
|
2,619,643 |
|
|
|
2,571,970 |
|
|
| Federal
Home Loan Bank borrowings |
|
50,000 |
|
|
|
172,000 |
|
|
| Other
borrowings |
|
38,938 |
|
|
|
38,813 |
|
|
| Interest
payable |
|
785 |
|
|
|
829 |
|
|
| Other
liabilities |
|
18,143 |
|
|
|
19,093 |
|
|
|
Liabilities of discontinued operations |
|
579 |
|
|
|
849 |
|
|
|
Total liabilities |
|
2,728,088 |
|
|
|
2,803,554 |
|
|
|
Commitments and contingencies |
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
| Preferred
stock, 1,000,000 shares authorized; none issued |
|
|
|
|
| and
outstanding |
|
— |
|
|
|
— |
|
|
| Common
stock, $0.01 par value; 1,000,000,000 shares |
|
|
|
|
|
authorized; 23,159,377 and 23,123,518 shares issued |
|
|
|
|
| and
outstanding on March 31, 2017 and December 31, 2016,
respectively |
|
232 |
|
|
|
231 |
|
|
| Capital
surplus |
|
712,048 |
|
|
|
710,916 |
|
|
|
Accumulated deficit |
|
(239,875 |
) |
|
|
(245,538 |
) |
|
|
Accumulated other comprehensive income, net of tax |
|
(1,913 |
) |
|
|
(2,428 |
) |
|
| Total
shareholders' equity before non-controlling interest |
|
470,492 |
|
|
|
463,181 |
|
|
|
Non-controlling interest of the discontinued operations |
|
— |
|
|
|
457 |
|
|
|
Total shareholders' equity |
|
470,492 |
|
|
|
463,638 |
|
|
|
Total liabilities and shareholders' equity |
$ |
3,198,580 |
|
|
$ |
3,267,192 |
|
|
| |
|
| Xenith Bankshares, Inc. |
|
| Consolidated Statements of Income |
|
| For the Three Months Ended March 31, 2017 and
2016 |
|
|
(unaudited) |
|
|
|
| (in thousands) |
March 31, 2017 |
|
March 31, 2016 |
|
|
| Interest
Income |
|
|
|
|
|
| Loans,
including fees |
$ |
27,359 |
|
|
$ |
16,584 |
|
|
|
|
Investment securities |
|
2,068 |
|
|
|
1,350 |
|
|
|
| Overnight
funds sold and deposits in other banks |
|
236 |
|
|
|
44 |
|
|
|
|
Total interest income |
|
29,663 |
|
|
|
17,978 |
|
|
|
| Interest
Expense |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Demand |
|
1,584 |
|
|
|
846 |
|
|
|
|
Savings |
|
56 |
|
|
|
16 |
|
|
|
| Time
deposits |
|
2,319 |
|
|
|
1,864 |
|
|
|
| Interest
on deposits |
|
3,959 |
|
|
|
2,726 |
|
|
|
| Federal
Home Loan Bank borrowings |
|
173 |
|
|
|
18 |
|
|
|
| Other
borrowings |
|
680 |
|
|
|
472 |
|
|
|
|
Total interest expense |
|
4,812 |
|
|
|
3,216 |
|
|
|
|
Net interest income |
|
24,851 |
|
|
|
14,762 |
|
|
|
| Provision
for loan losses |
|
9 |
|
|
|
(25 |
) |
|
|
| Net interest
income after provision for loan losses |
|
24,842 |
|
|
|
14,787 |
|
|
|
| Noninterest
Income |
|
|
|
|
|
| Service
charges on deposit accounts |
|
1,160 |
|
|
|
1,139 |
|
|
|
| Earnings
from bank-owned life insurance |
|
476 |
|
|
|
349 |
|
|
|
| Gain on
sale of loans |
|
19 |
|
|
|
— |
|
|
|
| Visa
check card income |
|
753 |
|
|
|
641 |
|
|
|
|
Other |
|
724 |
|
|
|
384 |
|
|
|
|
Total noninterest income |
|
3,132 |
|
|
|
2,513 |
|
|
|
| Noninterest
Expense |
|
|
|
|
|
| Salaries
and employee benefits |
|
10,487 |
|
|
|
7,771 |
|
|
|
|
Professional and consultant fees |
|
1,199 |
|
|
|
585 |
|
|
|
|
Occupancy |
|
1,981 |
|
|
|
1,416 |
|
|
|
| FDIC
insurance |
|
729 |
|
|
|
414 |
|
|
|
| Data
processing and technology |
|
1,026 |
|
|
|
1,204 |
|
|
|
| Problem
loan and repossessed asset costs |
|
99 |
|
|
|
101 |
|
|
|
|
Impairments and (gains) and losses on sales of other real estate
owned and repossessed assets, net |
|
70 |
|
|
|
(177 |
) |
|
|
|
Equipment |
|
334 |
|
|
|
284 |
|
|
|
| Board
fees |
|
131 |
|
|
|
246 |
|
|
|
|
Advertising and marketing |
|
224 |
|
|
|
50 |
|
|
|
|
Merger-related |
|
250 |
|
|
|
1,568 |
|
|
|
|
Other |
|
3,001 |
|
|
|
2,071 |
|
|
|
|
Total noninterest expense |
|
19,531 |
|
|
|
15,533 |
|
|
|
| Income from continuing
operations before provision for income taxes |
|
8,443 |
|
|
|
1,767 |
|
|
|
| Provision for income
taxes - continuing operations |
|
2,704 |
|
|
|
734 |
|
|
|
| Net income from
continuing operations |
|
5,739 |
|
|
|
1,033 |
|
|
|
| Net (loss) income from
discontinued operations before provision for income taxes |
|
(255 |
) |
|
|
570 |
|
|
|
| (Benefit) provision for
income taxes - discontinued operations |
|
(56 |
) |
|
|
15 |
|
|
|
| Net (loss) income from
discontinued operations attributable to non-controlling
interest |
|
(123 |
) |
|
|
206 |
|
|
|
| Net (loss)
income from discontinued operations |
|
(76 |
) |
|
|
349 |
|
|
|
| Net income
attributable to Xenith Bankshares, Inc. |
$ |
5,663 |
|
|
$ |
1,382 |
|
|
|
| |
|
|
|
|
|
| CONSOLIDATED
FINANCIAL HIGHLIGHTS (Unaudited) |
|
|
|
|
|
|
| ($ in thousands, except
per share data) |
|
|
|
|
|
|
| PERFORMANCE
MEASURES |
|
|
|
|
|
|
|
|
| |
Quarter Ended |
|
Year Ended |
|
| |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|
December
31, |
|
| |
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
|
2016 |
|
|
| Net interest margin
(1) |
|
3.49 |
% |
3.27 |
% |
3.59 |
% |
3.29 |
% |
3.30 |
% |
|
3.38 |
% |
|
| Return on average
assets (2) |
|
0.71 |
% |
0.62 |
% |
6.67 |
% |
0.51 |
% |
0.27 |
% |
|
2.22 |
% |
|
| Return on average
common equity (3) |
|
4.90 |
% |
4.42 |
% |
51.42 |
% |
3.56 |
% |
1.89 |
% |
|
15.98 |
% |
|
| Efficiency ratio
(4) |
|
70 |
% |
68 |
% |
126 |
% |
82 |
% |
90 |
% |
|
92 |
% |
|
| Efficiency ratio,
excluding merger-related costs (5) |
|
69 |
% |
63 |
% |
76 |
% |
76 |
% |
81 |
% |
|
73 |
% |
|
| Accretion of acquired
loan discounts |
$ |
1,015 |
|
1,411 |
|
1,509 |
|
- |
|
- |
|
|
2,920 |
|
|
| Income (loss) from
continuing operations before income taxes |
$ |
8,443 |
|
8,177 |
|
(17,339 |
) |
3,181 |
|
1,767 |
|
|
(4,214 |
) |
|
| Net income |
$ |
5,663 |
|
5,173 |
|
47,864 |
|
2,623 |
|
1,382 |
|
|
57,042 |
|
|
| Earnings per common
share (basic)-continuing operations (6) |
$ |
0.25 |
|
0.22 |
|
2.26 |
|
0.11 |
|
0.06 |
|
|
2.82 |
|
|
| Earnings per common
share (diluted)-continuing operations (6) |
$ |
0.25 |
|
0.22 |
|
2.25 |
|
0.11 |
|
0.06 |
|
|
2.81 |
|
|
| Earnings per common
share (basic)-discontinued operations (6) |
$ |
- |
|
- |
|
0.02 |
|
0.04 |
|
0.02 |
|
|
0.08 |
|
|
| Earnings per common
share (diluted)-discontinued operations (6) |
$ |
- |
|
- |
|
0.02 |
|
0.04 |
|
0.02 |
|
|
0.08 |
|
|
| Earnings per common
share (basic) (6) |
$ |
0.24 |
|
0.22 |
|
2.28 |
|
0.15 |
|
0.08 |
|
|
2.90 |
|
|
| Earnings per common
share (diluted) (6) |
$ |
0.24 |
|
0.22 |
|
2.27 |
|
0.15 |
|
0.08 |
|
|
2.89 |
|
|
|
______________________________ |
|
|
|
|
|
|
|
|
| (1) Net interest margin is net interest income (from
continuing and discontinued operations) divided by average
interest-earning assets. For the purposes of this calculation,
tax-exempt interest income from tax-exempt municipal securities is
computed on a taxable-equivalent yield basis. |
|
| (2) Return on average assets is net income for the respective
period (annualized for quarter periods) divided by average assets
for the respective period. |
|
| (3) Return on average common equity is net income for the
respective period (annualized for quarter periods) divided by
average common equity (excluding non-controlling interest) for the
respective period. |
|
| (4) Efficiency ratio is noninterest expense divided by the sum
of net interest income and noninterest income from continuing
operations. |
|
| (5) Non-GAAP financial measure. See discussion of
non-GAAP financial measures below. |
|
|
|
|
|
|
| (6) The Company completed a 1-for10 reverse stock split on
December 13, 2016. Per share data for periods prior to the
date of the reverse stock split have been adjusted and are
presented on a comparative basis. |
|
| |
|
|
|
|
|
|
|
|
| ASSET QUALITY
MEASURES |
Quarter Ended |
|
|
|
| |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|
|
|
| |
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
|
|
|
| Net charge-offs as a
percentage of average loans (year to date) |
|
0.15 |
% |
0.65 |
% |
0.01 |
% |
-0.43 |
% |
0.50 |
% |
|
|
|
| Allowance for loan
losses (ALL) as a percentage of loans (1) |
|
0.78 |
% |
0.89 |
% |
1.37 |
% |
1.47 |
% |
1.40 |
% |
|
|
|
| ALL plus remaining
discounts on acquired loans as a percentage of gross loans (2) |
|
1.10 |
% |
1.25 |
% |
1.77 |
% |
1.47 |
% |
1.40 |
% |
|
|
|
| ALL to nonaccrual loans
(1) |
|
69.81 |
% |
67.78 |
% |
77.65 |
% |
76.50 |
% |
61.82 |
% |
|
|
|
| Nonperforming loans as
a percentage of gross loans |
|
1.11 |
% |
1.31 |
% |
1.76 |
% |
1.92 |
% |
2.26 |
% |
|
|
|
| Nonperforming assets as
a percentage of total assets |
|
0.98 |
% |
1.15 |
% |
1.50 |
% |
1.66 |
% |
2.10 |
% |
|
|
|
| Troubled debt
restructurings |
$ |
28,159 |
|
28,872 |
|
28,981 |
|
29,812 |
|
30,479 |
|
|
|
|
|
______________________________ |
|
|
|
|
|
|
|
|
| (1) ALL excludes discounts (fair value adjustments) on acquired
loans. |
|
|
|
|
|
|
|
| (2) Ratio is a non-GAAP financial measure calculated as the
sum of ALL and discounts (fair value adjustments) on acquired loans
divided by the sum of gross loans and discounts on loans. See
discussion of non-GAAP financial measures below. |
|
|
|
| |
|
|
|
|
|
|
|
|
| CAPITAL
MEASURES |
Quarter Ended |
|
|
|
| |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|
|
|
| |
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
|
|
|
| Common Equity Tier 1
capital ratio - Consolidated |
|
12.62 |
% |
12.15 |
% |
12.14 |
% |
14.52 |
% |
14.65 |
% |
|
|
|
| Common Equity Tier 1
capital ratio - Bank only |
|
11.80 |
% |
11.25 |
% |
11.20 |
% |
14.60 |
% |
14.72 |
% |
|
|
|
| Tier 1 risk-based
capital ratio - Consolidated |
|
12.78 |
% |
12.15 |
% |
12.14 |
% |
14.93 |
% |
15.11 |
% |
|
|
|
| Tier 1 risk-based
capital ratio - Bank only |
|
11.80 |
% |
11.25 |
% |
11.20 |
% |
14.60 |
% |
14.72 |
% |
|
|
|
| Total risk-based
capital ratio - Consolidated |
|
13.76 |
% |
13.23 |
% |
13.62 |
% |
16.19 |
% |
16.35 |
% |
|
|
|
| Total risk-based
capital ratio - Bank only |
|
12.47 |
% |
12.03 |
% |
12.39 |
% |
15.87 |
% |
15.96 |
% |
|
|
|
| Tier 1 leverage ratio -
Consolidated |
|
11.24 |
% |
10.74 |
% |
12.50 |
% |
13.16 |
% |
13.05 |
% |
|
|
|
| Tier 1 leverage ratio -
Bank only |
|
10.32 |
% |
9.93 |
% |
11.55 |
% |
12.76 |
% |
12.69 |
% |
|
|
|
| Book value per common
share (1) (2) |
$ |
20.32 |
|
20.05 |
|
20.15 |
|
17.37 |
|
17.14 |
|
|
|
|
| Tangible book value per
common share (2) (3) |
$ |
19.00 |
|
18.72 |
|
18.84 |
|
17.37 |
|
17.14 |
|
|
|
|
|
______________________________ |
|
|
|
|
|
|
|
|
| (1) Book value per common share is total shareholders' equity
divided by common shares outstanding at the end of the respective
period. |
|
| (2) The Company completed a 1-for10 reverse stock split on
December 13, 2016. Per share data for periods prior to the
date of the reverse stock split have been adjusted and are
presented on a comparative basis. |
|
| (3) Tangible book value per common share is total
shareholders' equity less goodwill and intangible assets, net
divided by common shares outstanding at the end of the respective
period. |
|
| |
|
|
|
|
|
|
|
|
| AVERAGE
BALANCES (1) |
Quarter Ended |
|
Year Ended |
|
| |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|
December
31, |
|
| |
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
|
2016 |
|
|
| Total assets |
$ |
3,247,129 |
|
3,320,516 |
|
2,854,920 |
|
2,053,285 |
|
2,034,948 |
|
|
2,568,744 |
|
|
| Average
interest-earning assets |
$ |
2,900,544 |
|
2,956,592 |
|
2,573,181 |
|
1,849,152 |
|
1,820,574 |
|
|
2,296,457 |
|
|
| Loans, net of allowance
for loan losses |
$ |
2,398,848 |
|
2,418,825 |
|
2,117,627 |
|
1,591,399 |
|
1,564,868 |
|
|
1,891,345 |
|
|
| Total deposits |
$ |
2,611,528 |
|
2,604,622 |
|
2,298,600 |
|
1,670,289 |
|
1,681,744 |
|
|
2,065,933 |
|
|
| Shareholders'
equity |
$ |
469,344 |
|
466,254 |
|
371,007 |
|
296,897 |
|
294,706 |
|
|
357,552 |
|
|
|
______________________________ |
|
|
|
|
|
|
|
|
| (1) Average balances
are computed on a daily basis. |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| END OF PERIOD
BALANCES |
Quarter Ended |
|
|
|
| |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|
|
|
| |
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
|
|
|
| Total assets |
$ |
3,198,580 |
|
3,267,192 |
|
3,325,467 |
|
2,092,448 |
|
2,040,373 |
|
|
|
|
| Loans, net of allowance
for loan losses |
$ |
2,338,533 |
|
2,442,116 |
|
2,437,302 |
|
1,538,019 |
|
1,495,811 |
|
|
|
|
| Total deposits |
$ |
2,619,643 |
|
2,571,970 |
|
2,586,608 |
|
1,643,759 |
|
1,684,258 |
|
|
|
|
| Shareholders'
equity |
$ |
470,492 |
|
463,638 |
|
464,956 |
|
297,900 |
|
293,619 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
| RECONCILIATION
OF GAAP TO NON-GAAP FINANCIAL
MEASURES |
|
|
|
|
|
|
|
|
| |
Quarter Ended |
|
|
|
| Efficiency
ratio, excluding merger-related costs (continuing
operations) |
March 31, 2017 |
December 31,
2016 |
September 30,
2016 |
June 30, 2016 |
March 31, 2016 |
|
|
|
| Noninterest
expense |
$ |
19,532 |
|
18,461 |
|
32,535 |
|
14,349 |
|
15,533 |
|
|
|
|
| Deduct:
merger-related costs |
$ |
250 |
|
1,162 |
|
12,910 |
|
1,077 |
|
1,568 |
|
|
|
|
| Noninterest expense,
excluding merger-related costs |
$ |
19,282 |
|
17,299 |
|
19,625 |
|
13,272 |
|
13,965 |
|
|
|
|
| Net interest
income |
$ |
24,852 |
|
24,134 |
|
23,011 |
|
14,963 |
|
14,761 |
|
|
|
|
| Noninterest income |
$ |
3,132 |
|
3,130 |
|
2,870 |
|
2,611 |
|
2,513 |
|
|
|
|
| Efficiency ratio,
excluding merger-related costs |
|
69 |
% |
63 |
% |
76 |
% |
76 |
% |
81 |
% |
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Quarter Ended |
|
|
|
| |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|
|
|
| |
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
|
|
|
| Fair Value
Adjusted ALL/ Gross Loans |
|
|
|
|
|
|
|
|
| Allowance for loan
losses |
$ |
18,275 |
|
21,940 |
|
33,730 |
|
22,903 |
|
21,175 |
|
|
|
|
|
Add: Discounts (fair value adjustments) on acquired
loans |
$ |
7,715 |
|
9,030 |
|
10,075 |
|
- |
|
- |
|
|
|
|
| Total fair value
adjusted ALL |
$ |
25,990 |
|
30,970 |
|
43,805 |
|
22,903 |
|
21,175 |
|
|
|
|
| Gross loans + discounts
(fair value adjustments) on acquired loans |
$ |
2,364,523 |
|
2,473,086 |
|
2,481,107 |
|
1,560,922 |
|
1,516,986 |
|
|
|
|
| Fair value adjusted
ALL/Gross loans |
|
1.10 |
% |
1.25 |
% |
1.77 |
% |
1.47 |
% |
1.40 |
% |
|
|
|
|
______________________________ |
|
|
|
|
|
|
|
|
| Efficiency ratio, excluding merger-related costs is a non-GAAP
financial measures and is not required by or presented in
accordance with GAAP. Management believes that this measure
excluding merger-related costs is meaningful as it presents the
performance of the company without the additive merger costs that
are non-recurring and would not be incurred if the company had not
merged with Hampton Roads Bankshares, Inc. Allowance for loan
losses (ALL) plus discounts on acquired loans as a percentage of
gross loans is a supplemental financial measures that is not
required by, or presented in accordance with, U.S. GAAP.
Management believes that fair value adjusted ALL as a percentage of
gross loans is meaningful because it is a measure management uses
to assess asset quality. Set forth above are reconciliations of
each of these non-GAAP financial measures calculated and reported
in accordance with GAAP. Calculations of these non-GAAP financial
measures may not be comparable to the calculation of similarly
titled measures reported by other companies. |
|
|
|
| |
|
|
|
|
|
|
|
|
Contact:
Thomas W. Osgood
Executive Vice President, Chief Financial Officer,
and Treasurer (804) 433-2209
tosgood@xenithbank.com
Xenith Bankshares, Inc. NEW (NASDAQ:XBKS)
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