Val­ley Fi­nan­cial an­nounces con­sol­i­dated fi­nan­cial re­sults for the 3Q

The Pak Banker - - Front Page -

ROANOKE

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.

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