Valley Financial announces consolidated financial results for the 3Q
Valley Financial Corporation announced today its consolidated financial results for the third quarter of 2012 and reported net income of $1,697,000 and diluted earnings per share of $0.30 for the quarter ended September 30, 2012. The quarterly results represent an increase of $127,000 and $0.02 per share from the quarter ended September 30, 2011. After deducting dividends and discount accretion on preferred stock from net income, net income available to common shareholders increased 9% to $1,452,000 as compared to $1,328,000 for the prior year’s third quarter. The Company’s earn- ings for the three-month period produced an annualized return on average total assets of 0.86% and an annualized return on average shareholder’s equity of 10.54% as compared to 0.80% and 10.77% for the same period last year.
The Company’s regulators have permitted and the Board of Directors has authorized the Company’s redemption of the first 10%, or $1,601,900, of its TARP preferred stock currently held by the U. S. Treasury. The payment will be made on November 15, 2012. The Company currently expects to make quarterly redemptions during 2013 of similar amounts, based on its earnings, financial condition and obtaining continued regulatory per- mission. Ellis L. Gutshall, President and Chief Executive Officer of Valley Financial Corporation stated, “Valley Financial Corporation’s momentum continues.
Quarterly earnings of $1,697,000 and $0.30 per diluted share, producing annualized return on average total assets of 0.86% and annualized return on average shareholder’s equity of 10.54%.Reinstatement of quarterly common stock dividend of $0.035 per share, payable on November 1, 2012 to shareholders of record on October 15, 2012.
Increase in loans outstanding of $33.4 million or nearly 7% over year-end balances and $10.6 million during the third quarter alone. 17 basis point increase in net interest margin to 3.58% as compared to the 3.41% reported for the third quarter of 2011. Noninterest income growth of $239,000 or 29% as compared to the prior year’s third quarter, absent the gains realized on the sale of securities during each respective period. Noninterest expense decrease of $128,000 or 2% when compared to the prior year’s third quarter.Net income for the nine-month period ended September 30, 2012 was $5,225,000 compared to net income of $3,887,000 for the same period last year, an increase of $1,338,000, or 34%. After the dividend on preferred stock and accretion on discounts on warrants, net income available to common shareholders year-to-date was $4,491,000 as compared to net income to common shareholders of $3,161,000 for the same period last year, an increase of 42%. Fully diluted earnings per common share were $0.93 for the nine-month period ended September 30, 2012, a 39% increase over the $0.67 per common share for the same period last year. The Company’s earnings for the nine-month period produced an annualized return on average total assets of 0.89% and an annualized return on average shareholder’s equity of 11.21% as compared to 0.66% and 9.10% for the same period last year. Valley Financial Corporation’s capital levels remain well above the regulatory well-capitalized ratios. Tier 1 risk- based and total risk-based capital ratios were 13.48% and 14.74%, respectively, at September 30, 2012, improved from the 13.12% and 14.38% reported at September 30, 2011. Due to strong asset growth and the declaration of the common stock dividend, the Company’s Tier 1 risk-based and total risk-based capital ratios declined slightly from 13.51% and 14.77%, respectively, at June 30, 2012.
Gutshall stated, “We have built our capital position during the past two years through record earnings to put the Company in a position to reinstate the quarterly common stock dividend and to begin TARP redemption payments. As a result.