Xenith Bankshares, Inc. | ||
(Exact name of registrant as specified in its charter) | ||
Virginia | 001-32968 | 54-2053718 |
(State or other jurisdiction | (Commission | (IRS Employer |
of incorporation) | File Number) | Identification No.) |
One James Center, 901 E.Cary Street, Suite 1700, Richmond, Virginia, 23219 | ||
(Address of principal executive offices) (Zip Code) | ||
Registrant’s telephone number, including area code (804) 433-2200 | ||
(Former name or former address, if changed since last report) |
Xenith Bankshares, Inc. | |||
Date: August 9, 2016 | By: | /s/ Thomas W. Osgood | |
Thomas W. Osgood | |||
Chief Financial Officer | |||
Exhibit No. | Description |
99.1 | Press Release, dated August 9, 2016, announcing Xenith Bankshares, Inc.’s second quarter and first six months of 2016 financial results. |
• | Net income attributable to common shareholders of $2.6 million and $4.0 million for the three and six months ended June 30, 2016, respectively, compared to $2.7 million and $4.1 million for the three and six months |
• | Non-performing assets decreased by $13.9 million, or 29.0%, from December 31, 2015 to $34.0 million at June 30, 2016, resulting in a non-performing asset ratio of 2.09%. |
• | Non-interest expenses, excluding merger-related expenses, declined $2.9 million, or 14.0% for the three months ended June 30, 2016, and declined $4.5 million, or 11.1%, for the six months ended June 30, 2016, compared to the same periods in 2015. |
• | Mortgage banking revenue grew 5.3% during the second quarter 2016 compared to the same period in 2015, as favorable market conditions continued to drive mortgage financing demand. |
Xenith Bankshares, Inc. (f/k/a Hampton Roads Bankshares, Inc.) | ||||||||
Financial Highlights | ||||||||
(unaudited) | June 30, | December 31, | ||||||
(in thousands) | 2016 | 2015 | ||||||
Assets: | ||||||||
Cash and due from banks | $ | 16,166 | $ | 17,031 | ||||
Interest-bearing deposits in other banks | 705 | 691 | ||||||
Overnight funds sold and due from Federal Reserve Bank | 47,613 | 46,024 | ||||||
Investment securities available for sale, at fair value | 200,427 | 198,174 | ||||||
Restricted equity securities, at cost | 15,693 | 9,830 | ||||||
Loans held for sale | 61,713 | 56,486 | ||||||
Loans | 1,562,155 | 1,541,502 | ||||||
Allowance for loan losses | (22,911) | (23,184) | ||||||
Net loans | 1,539,244 | 1,518,318 | ||||||
Premises and equipment, net | 50,941 | 52,245 | ||||||
Interest receivable | 3,846 | 4,116 | ||||||
Other real estate owned and repossessed assets, | ||||||||
net of valuation allowance | 4,086 | 12,409 | ||||||
Net deferred tax assets, net of valuation allowance | 88,760 | 92,142 | ||||||
Bank-owned life insurance | 51,346 | 50,695 | ||||||
Other assets | 11,908 | 7,779 | ||||||
Totals assets | $ | 2,092,448 | $ | 2,065,940 | ||||
Liabilities and Shareholders' Equity: | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand | $ | 306,627 | $ | 298,351 | ||||
Interest-bearing: | ||||||||
Demand | 662,780 | 693,413 | ||||||
Savings | 68,281 | 61,023 | ||||||
Time deposits: | ||||||||
Less than $100 | 322,272 | 343,031 | ||||||
$100 or more | 283,799 | 309,327 | ||||||
Total deposits | 1,643,759 | 1,705,145 | ||||||
Federal Home Loan Bank borrowings | 98,000 | 25,000 | ||||||
Other borrowings | 29,936 | 29,689 | ||||||
Interest payable | 495 | 463 | ||||||
Other liabilities | 22,358 | 15,022 | ||||||
Total liabilities | 1,794,548 | 1,775,319 | ||||||
Shareholders' equity: | ||||||||
Common stock | 1,715 | 1,711 | ||||||
Capital surplus | 590,982 | 590,417 | ||||||
Accumulated deficit | (298,575) | (302,580) | ||||||
Accumulated other comprehensive income, net of tax | 2,913 | 560 | ||||||
Total shareholders' equity before non-controlling interest | 297,035 | 290,108 | ||||||
Non-controlling interest | 865 | 513 | ||||||
Total shareholders' equity | 297,900 | 290,621 | ||||||
Total liabilities and shareholders' equity | $ | 2,092,448 | $ | 2,065,940 | ||||
Non-performing Assets at Period-End: | ||||||||
Loans 90 days past due and still accruing interest | $ | — | $ | — | ||||
Nonaccrual loans, including nonaccrual impaired loans | 29,938 | 35,512 | ||||||
Other real estate owned and repossessed assets | 4,086 | 12,409 | ||||||
Total non-performing assets | $ | 34,024 | $ | 47,921 | ||||
Composition of Loan Portfolio at Period-End: | ||||||||
Commercial and Industrial | $ | 226,072 | $ | 233,319 | ||||
Construction | 140,387 | 141,208 | ||||||
Real estate - commercial mortgage | 652,684 | 655,895 | ||||||
Real estate - residential mortgage | 341,606 | 349,758 | ||||||
Installment | 200,896 | 161,918 | ||||||
Deferred loan fees and related costs | 510 | (596) | ||||||
Total loans | $ | 1,562,155 | $ | 1,541,502 |
Xenith Bankshares, Inc. (f/k/a Hampton Roads Bankshares, Inc.) | ||||||||||||||||
Financial Highlights | ||||||||||||||||
(unaudited) | Three Months Ended | Six Months Ended | ||||||||||||||
(in thousands, except share and per share data) | June 30, | June 30, | June 30, | June 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Interest Income: | ||||||||||||||||
Loans, including fees | $ | 16,845 | $ | 17,452 | $ | 33,577 | $ | 33,612 | ||||||||
Investment securities | 1,364 | 1,555 | 2,713 | 3,297 | ||||||||||||
Overnight funds sold and due from FRB | 38 | 40 | 83 | 99 | ||||||||||||
Total interest income | 18,247 | 19,047 | 36,373 | 37,008 | ||||||||||||
Interest Expense: | ||||||||||||||||
Deposits: | ||||||||||||||||
Demand | 831 | 670 | 1,669 | 1,344 | ||||||||||||
Savings | 24 | 13 | 40 | 23 | ||||||||||||
Time deposits: | ||||||||||||||||
Less than $100 | 890 | 943 | 1,844 | 1,853 | ||||||||||||
$100 or more | 822 | 1,007 | 1,733 | 1,941 | ||||||||||||
Interest on deposits | 2,567 | 2,633 | 5,286 | 5,161 | ||||||||||||
Federal Home Loan Bank borrowings | 66 | 251 | 84 | 574 | ||||||||||||
Other borrowings | 499 | 424 | 972 | 842 | ||||||||||||
Total interest expense | 3,132 | 3,308 | 6,342 | 6,577 | ||||||||||||
Net interest income | 15,115 | 15,739 | 30,031 | 30,431 | ||||||||||||
Provision for loan losses | — | — | — | 600 | ||||||||||||
Net interest income after provision for loan losses | 15,115 | 15,739 | 30,031 | 29,831 | ||||||||||||
Noninterest Income: | ||||||||||||||||
Mortgage banking revenue | 5,789 | 5,500 | 10,228 | 9,722 | ||||||||||||
Service charges on deposit accounts | 1,118 | 1,298 | 2,256 | 2,440 | ||||||||||||
Income from bank-owned life insurance | 302 | 305 | 651 | 655 | ||||||||||||
Gain on sale of investment securities available for sale | 15 | 126 | 15 | 238 | ||||||||||||
Visa check card income | 707 | 676 | 1,348 | 1,317 | ||||||||||||
Other | 468 | 506 | 853 | 1,364 | ||||||||||||
Total noninterest income | 8,399 | 8,411 | 15,351 | 15,736 | ||||||||||||
Noninterest Expense: | ||||||||||||||||
Salaries and employee benefits | 10,797 | 11,249 | 21,577 | 21,916 | ||||||||||||
Professional and consultant fees | 621 | 1,459 | 1,254 | 2,267 | ||||||||||||
Occupancy | 1,624 | 1,626 | 3,248 | 3,255 | ||||||||||||
FDIC insurance | 431 | 399 | 845 | 1,023 | ||||||||||||
Data processing | 1,456 | 1,606 | 2,763 | 3,037 | ||||||||||||
Problem loan and repossessed asset costs | 101 | 492 | 202 | 612 | ||||||||||||
Impairments and gains and losses on sales of other real estate owned and repossessed assets, net | (396) | 387 | (573) | 1,245 | ||||||||||||
Impairments and gains and losses on sale of premises and equipment, net | (1) | — | (1) | 14 | ||||||||||||
Equipment | 242 | 335 | 546 | 685 | ||||||||||||
Directors' and regional board fees | 394 | 293 | 640 | 594 | ||||||||||||
Advertising and marketing | 266 | 445 | 536 | 705 | ||||||||||||
Merger-related expenses | 1,077 | — | 2,646 | — | ||||||||||||
Other | 2,403 | 2,570 | 4,862 | 5,016 | ||||||||||||
Total noninterest expense | 19,015 | 20,861 | 38,545 | 40,369 | ||||||||||||
Income before provision for income taxes | 4,499 | 3,289 | 6,837 | 5,198 | ||||||||||||
Provision for income taxes - current | 21 | 35 | 36 | 75 | ||||||||||||
Provision for income taxes - deferred | 1,311 | — | 2,046 | — | ||||||||||||
Net income | 3,167 | 3,254 | 4,755 | 5,123 | ||||||||||||
Net income attributable to non-controlling interest | 544 | 528 | 750 | 1,062 | ||||||||||||
Net income attributable to Xenith Bankshares, Inc. | $ | 2,623 | $ | 2,726 | $ | 4,005 | $ | 4,061 | ||||||||
Per Share: | ||||||||||||||||
Basic and diluted income per share | $ | 0.02 | $ | 0.02 | $ | 0.02 | $ | 0.02 | ||||||||
Basic weighted average shares outstanding | 171,809,356 | 171,505,172 | 171,855,588 | 171,447,138 | ||||||||||||
Effect of dilutive shares and warrant | 924,888 | 1,170,106 | 883,741 | 1,095,593 | ||||||||||||
Diluted weighted average shares outstanding | 172,734,244 | 172,675,278 | 172,739,329 | 172,542,731 |
Xenith Bankshares, Inc. (f/k/a Hampton Roads Bankshares, Inc.) | ||||||||||||||||
Financial Highlights | ||||||||||||||||
(unaudited) | Three Months Ended | Six Months Ended | ||||||||||||||
(in thousands, except share and per share data) | June 30, | June 30, | June 30, | June 30, | ||||||||||||
Daily Averages: | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Total assets | $ | 2,053,285 | $ | 2,035,901 | $ | 2,044,117 | $ | 2,035,178 | ||||||||
Gross loans (excludes loans held for sale) | 1,544,553 | 1,536,988 | 1,532,306 | 1,513,132 | ||||||||||||
Investment and restricted equity securities | 211,592 | 238,979 | 210,762 | 253,063 | ||||||||||||
Total deposits | 1,670,289 | 1,673,718 | 1,676,017 | 1,651,635 | ||||||||||||
Total borrowings | 71,462 | 141,700 | 56,467 | 161,651 | ||||||||||||
Shareholders' equity * | 296,377 | 204,099 | 295,308 | 202,205 | ||||||||||||
Interest-earning assets | 1,849,152 | 1,903,614 | 1,834,864 | 1,901,060 | ||||||||||||
Interest-bearing liabilities | 1,441,260 | 1,521,933 | 1,438,319 | 1,532,768 | ||||||||||||
Financial Ratios: | ||||||||||||||||
Return on average assets | 0.51 | % | 0.54 | % | 0.39 | % | 0.40 | % | ||||||||
Return on average equity * | 3.56 | % | 5.36 | % | 2.73 | % | 4.05 | % | ||||||||
Net interest margin | 3.29 | % | 3.32 | % | 3.29 | % | 3.23 | % | ||||||||
Efficiency ratio | 80.92 | % | 86.83 | % | 84.96 | % | 87.89 | % | ||||||||
Allowance for Loan Losses: | ||||||||||||||||
Beginning balance | $ | 21,228 | $ | 28,177 | $ | 23,184 | $ | 27,050 | ||||||||
Provision for losses | — | — | — | 600 | ||||||||||||
Charge-offs | (1,608) | (1,246) | (4,373) | (1,697) | ||||||||||||
Recoveries | 3,291 | 805 | 4,100 | 1,783 | ||||||||||||
Ending balance | $ | 22,911 | $ | 27,736 | $ | 22,911 | $ | 27,736 | ||||||||
Asset Quality Ratios: | ||||||||||||||||
Annualized net charge-offs to average loans | (0.43 | )% | 0.11 | % | 0.03 | % | (0.01 | )% | ||||||||
Non-performing loans to total loans | 1.92 | % | 2.67 | % | 1.92 | % | 2.67 | % | ||||||||
Non-performing assets ratio | 2.09 | % | 3.36 | % | 2.09 | % | 3.36 | % | ||||||||
Allowance for loan losses to total loans | 1.47 | % | 1.81 | % | 1.47 | % | 1.81 | % | ||||||||
* Equity amounts exclude non-controlling interest |
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