Xenith Bankshares Q3 net income down

Xenith Bankshares, Inc. has reported a net income of $5.90 million, or $0.56 per share, for the third quarter ended September 30, 2012, compared to $6.79 million, or $0.65 per share, for the same quarter ended September 30, 2011.

Net interest income for the third quarter ended September 30, 2012 was $5.83 million, compared to $4.83 million for the same quarter ended September 30, 2011.

Net income for the nine months ended September 30, 2012 was $7.05 million, or $0.67 per share, compared to $4.23 million, or $0.48 per share, for the same period ended September 30, 2011.

Net interest income for the nine months ended September 30, 2012 was $16.47 million, compared to $10.46 million for the same period ended September 30, 2011.

Gaylon Layfield, III, President and CEO, said:"We continued making good progress during the third quarter of 2012 and reported our fifth consecutive quarter of earnings. While much remains to be accomplished, our focused strategy is proving to be a foundation for continuing growth and increasing profitability, the ultimate determiners of shareholder value. Our increase of 21% in net interest income reflected the continuing growth in loans funded by strong core deposit growth. We were also pleased to reverse our deferred tax valuation allowance which added $5.0 million to our net income for the quarter and year-to-date periods.

"On the important measures of capital strength and credit quality, we continue to report strong ratios. In addition, our allowance for loan and lease losses (ALLL) was $4.7 million, or 1.37% of loans held for investment, which when combined with $9.0 million of remaining discount related to our acquisitions, totaled 4.0% of total gross loans held for investment as of September 30, 2012. Finally, we continue to monitor carefully the slowly unfolding strategic repositioning of our industry as merger and acquisition activity occurs. As evidenced by our two acquisitions in 2011, we believe there can be opportunities for Xenith when the right circumstances align."