Valley Financial Corp. (VYFC, Financial) filed Quarterly Report for the period ended 2012-03-31.
Valley Finl Cp has a market cap of $39.4 million; its shares were traded at around $8.25 with a P/E ratio of 8.3 and P/S ratio of 1.1.
Net income for the three-month period ending March 31, 2011 was $1,101,000 as compared to net income of $848,000 for the same period of 2010, an increase of $253,000 or 30.0%. After the dividend on preferred stock and accretion of discounts on warrants, net income available to common shareholders was $859,000, or $0.18 per diluted common share, as compared to $609,000 or $0.13 per diluted common share for the first quarter of 2010. The Company s earnings for the first quarter of 2011 produced an annualized return on average total assets of 0.58% and an annualized return on average shareholders equity of 7.97%, as compared to 0.48% and 6.58%, respectively for the same period in 2010. Loan loss provisions decreased $644,000 in comparison to the prior year period, from $208,000 in 2010 to ($436,000) in the three-month period ended March 31, 2011.
The increase in net interest income and corresponding increase in net interest margin is primarily attributable to the reduction in funding costs over the last 12 months. The Company s cost of funds was 0.98% during the three-month period ended March 31, 2012, compared to the 1.32% reported in the same period last year and the 1.07% in the linked quarter. Decreased rates on our primary non-maturity deposit products, including MyLifestyle checking, MyLifestyle savings and Prime Money Market accounts, and more aggressive pricing on time deposits have led to the decrease in funding costs. While the Company s yield on earning assets declined in comparison to the 4.66% from the same prior year period, the 4.48% yield earned during the three-month period ended March 31, 2012 was a 7 bps improvement over
The increase in net interest income and corresponding increase in net interest margin is primarily attributable to the reduction in funding costs. The Company s cost of funds was 1.32% during the three-month period ended March 31, 2011, compared to the 1.96% reported in the same period of 2010 and the 1.43% in the linked quarter. Decreased rates on our primary non-maturity deposit products, including MyLifestyle checking, MyLifestyle savings and Prime Money Market accounts, and more aggressive pricing on time deposits have led to the decrease in funding costs. In contrast to the decline in funding costs, we were able to maintain the earning rates in our loan portfolio. The Company s yield on loans was 5.33% during the three-month period ended March 31, 2011, compared to the 5.21% reported in the same period of 2010 and the 5.34% in the linked quarter. Due to declines in the yield on investments, however, the yield on earning assets declined to 4.66% during the three-month period ended March 31, 2011, compared to the 4.83% reported in the same period of 2010, but increased from 4.53% in the linked quarter. The declines in funding costs have been much more significant, leading to the overall increase in our net interest margin.
Growing our noninterest income has been a major focal point over the past twelve months and we are excited that our efforts are translating into real results in both the investment and mortgage lines of business. With the successful recruitment of Roanoke s top mortgage originator during the first quarter, we expect this line of business s income to continue to increase. The first quarter was significantly above expectations for Valley Wealth Management as we closed on several significant new relationships. While we would hope this level of activity could be sustained throughout 2012, a more realistic view anticipates revenues returning to more normal levels for the remainder of the year.
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Valley Finl Cp has a market cap of $39.4 million; its shares were traded at around $8.25 with a P/E ratio of 8.3 and P/S ratio of 1.1.
Highlight of Business Operations:
Net income for the three-month period ending March 31, 2012 was $1,659,000 as compared to net income of $1,101,000 for the same period last year, an increase of $558,000 or 51%. After the dividend on preferred stock and accretion of discounts on warrants, net income available to common shareholders was $1,415,000, or $0.30 per diluted common share, as compared to $859,000 or $0.18 per diluted common share for the first quarter of 2011, an increase of 65%. The Company s earnings for the first quarter of 2012 produced an annualized return on average total assets of 0.86% and an annualized return on average shareholders equity of 11.01%, as compared to 0.58% and 7.97%, respectively for the same period last year.Net income for the three-month period ending March 31, 2011 was $1,101,000 as compared to net income of $848,000 for the same period of 2010, an increase of $253,000 or 30.0%. After the dividend on preferred stock and accretion of discounts on warrants, net income available to common shareholders was $859,000, or $0.18 per diluted common share, as compared to $609,000 or $0.13 per diluted common share for the first quarter of 2010. The Company s earnings for the first quarter of 2011 produced an annualized return on average total assets of 0.58% and an annualized return on average shareholders equity of 7.97%, as compared to 0.48% and 6.58%, respectively for the same period in 2010. Loan loss provisions decreased $644,000 in comparison to the prior year period, from $208,000 in 2010 to ($436,000) in the three-month period ended March 31, 2011.
The increase in net interest income and corresponding increase in net interest margin is primarily attributable to the reduction in funding costs over the last 12 months. The Company s cost of funds was 0.98% during the three-month period ended March 31, 2012, compared to the 1.32% reported in the same period last year and the 1.07% in the linked quarter. Decreased rates on our primary non-maturity deposit products, including MyLifestyle checking, MyLifestyle savings and Prime Money Market accounts, and more aggressive pricing on time deposits have led to the decrease in funding costs. While the Company s yield on earning assets declined in comparison to the 4.66% from the same prior year period, the 4.48% yield earned during the three-month period ended March 31, 2012 was a 7 bps improvement over
The increase in net interest income and corresponding increase in net interest margin is primarily attributable to the reduction in funding costs. The Company s cost of funds was 1.32% during the three-month period ended March 31, 2011, compared to the 1.96% reported in the same period of 2010 and the 1.43% in the linked quarter. Decreased rates on our primary non-maturity deposit products, including MyLifestyle checking, MyLifestyle savings and Prime Money Market accounts, and more aggressive pricing on time deposits have led to the decrease in funding costs. In contrast to the decline in funding costs, we were able to maintain the earning rates in our loan portfolio. The Company s yield on loans was 5.33% during the three-month period ended March 31, 2011, compared to the 5.21% reported in the same period of 2010 and the 5.34% in the linked quarter. Due to declines in the yield on investments, however, the yield on earning assets declined to 4.66% during the three-month period ended March 31, 2011, compared to the 4.83% reported in the same period of 2010, but increased from 4.53% in the linked quarter. The declines in funding costs have been much more significant, leading to the overall increase in our net interest margin.
Growing our noninterest income has been a major focal point over the past twelve months and we are excited that our efforts are translating into real results in both the investment and mortgage lines of business. With the successful recruitment of Roanoke s top mortgage originator during the first quarter, we expect this line of business s income to continue to increase. The first quarter was significantly above expectations for Valley Wealth Management as we closed on several significant new relationships. While we would hope this level of activity could be sustained throughout 2012, a more realistic view anticipates revenues returning to more normal levels for the remainder of the year.
Read the The complete Report
