Xenith Bankshares, Inc (XBKS) has reported a 38.63 percent plunge in profit for the year ended Dec. 31, 2016. The company has earned $57.04 million, or $2.89 a share in the year, compared with $92.96 million, or $5.39 a share for the last year.      

Revenue during the year grew 6.55 percent to $76.66 million from $71.95 million in the previous year. Net interest income for the quarter rose 26.20 percent over the prior year period to $76.87 million. Non-interest income for the year fell 4.65 percent over the last year to $11.12 million.

Xenith Bankshares, Inc has made provision of $11.33 million for loan losses during the year, up 1,709.74 percent from $0.63 million in the same period last year.

Net interest margin improved 9 basis points to 3.38 percent in the year from 3.29 percent in the last year. Efficiency ratio for the year improved to 92 percent from 101 percent in the previous year. A decline in efficiency ratio indicates a rise in profitability.

T. Gaylon Layfield, III, chief executive officer, commented: "When I consider all that we have accomplished in 2016, particularly with respect to the merger, I’m pleased with our progress. Banking is about people and aligning two cultures is hard work, especially when cost savings are so important to improving performance. We rolled out our Vision, Mission and Values to establish expectations for the new Xenith. As we previously reported, we exited our mortgage banking business and transferred over 100 employees to a regional mortgage company. We grew core loans from the time of the merger until year-end at an annualized rate of nearly 8%. We established a new business-banking unit, supported by an approval platform geared for smaller loans and deposit gathering. On the expense front, we eliminated more than 40 overlapping positions in addition to the mortgage subsidiary reductions. In November, we consolidated our systems to a single core platform and entered into a new core-processing contract, which should result in significant savings going forward. I am also pleased with our progress related to asset quality as we reduced NPLs as a percentage of gross loans from 2.31% at the end of 2015 to 1.31% at the end of 2016. We also reduced OREO assets from $12.4 million at the end of 2015 to $5.3 million at the end of 2016, a 57% reduction. And, when I consider fourth quarter 2016 metrics, especially asset returns and overhead expense without merger-related noise and state tax adjustments, I like our trajectory."

Net loans stood at $2,442.12 million as on Dec. 31, 2016. Deposits stood at $2,571.97 million as on Dec. 31, 2016, up 50.84 percent compared with $1,705.14 million on Dec. 31, 2015.

Noninterest-bearing deposit liabilities were $501.68 million or 19.51 percent of total deposits on Dec. 31, 2016, compared with $298.35 million or 17.50 percent of total deposits on Dec. 31, 2015.

Investments stood at $317.44 million as on Dec. 31, 2016, up 60.18 percent or $119.27 million from year-ago. Shareholders equity stood at $463.64 million as on Dec. 31, 2016, up 59.53 percent or $173.02 million from year-ago.

Return on average assets moved down 242 basis points to 2.22 percent in the year from 4.64 percent in the last year. At the same time, return on average equity decreased 2957 basis points to 15.98 percent in the year from 45.55 percent in the last year.

Tier-1 leverage ratio stood at 9.93 percent for the year, down from 13.20 percent for the previous year. Book value per share was $20.05 for the year, up 18.15 percent or $3.08 compared to $16.97 for the same period last year.