Xenith Bankshares, Inc. Reports Loan, Deposit, and Total Asset Growth for the Third Quarter, and Nine Months of 2013 Financial

Xenith Bankshares, Inc. Reports Loan, Deposit, and Total Asset Growth for the
Third Quarter, and Nine Months of 2013 Financial Results

RICHMOND, Va., Oct. 30, 2013 (GLOBE NEWSWIRE) -- Xenith Bankshares, Inc.
(Nasdaq:XBKS), parent company of Xenith Bank, a business-focused bank serving
the Greater Washington, D.C., Richmond, and Greater Hampton Roads, Virginia
markets, today announced financial results for the three and nine months ended
September 30, 2013.

Net income was $748,000, or $0.07 per common share, for the three months ended
September 30, 2013, compared to net income of $5.9 million, or $0.56 per
common share, for the three months ended September 30, 2012. For the nine
months ended September 30, 2013, net income was $1.7 million, or $0.16 per
common share, compared to $7.0 million, or $0.67 per common share for the nine
months ended September 30, 2012. Net income in both periods of 2013 reflected
income tax expense, while net income in the comparable 2012 periods included a
$5.0 million, or $0.47 per common share, tax benefit due to the reversal of
the valuation allowance on the company's net deferred tax asset.

T. Gaylon Layfield, III, President and Chief Executive Officer, commented:
"Xenith's financial results demonstrate the continued progress we have made in
building a diversified portfolio of loans and deposits, while maintaining
strong credit quality and time-tested underwriting standards. We are
supporting our lending activities primarily with low-cost core deposits, which
is having a positive impact on our cost of funds. We have purposely built an
asset-sensitive balance sheet, which we believe positions the bank well in a
rising interest rate environment."

Third Quarter, Nine Months 2013 Highlights

  *Reflecting improvement in core operations, net income before income tax in
    the third quarters of 2013 and 2012 was $1.2 million and $1.0 million,
    respectively, while net income before income tax in the nine months of
    2013 and 2012 was $2.6 million and $2.1 million, respectively.
  *Net loans held for investment were $432.3 million at September 30, 2013,
    up 14%, compared to $379.0 million at December 31, 2012.
  *Average interest-earning assets in third quarter 2013 were $554.2 million,
    up 8% from $513.1 million in third quarter 2012.
  *Total assets at September 30, 2013 were $606.3 million, an increase of
    7.6%, compared to $563.2 million at December 31, 2012.
  *Asset quality and coverage for loan losses remained strong at September
    30, 2013, with ratios of nonperforming assets to total assets of 0.73%,
    nonperforming assets to loans held for investment of 1.02%, and an
    allowance for loan and lease losses to nonaccrual loans of 127%. Net
    charge-offs as a percentage of average loans held for investment were
    0.15% for the nine-month period ended September 30, 2013.
  *Capital strength was reflected in ratios that were well above regulatory
    standards for "well-capitalized" banks, with a Tier 1 leverage ratio of
    12.0%, a Tier 1 risk-based capital ratio of 13.8%, and a total risk-based
    capital ratio of 14.9% at September 30, 2013.
  *Reflecting shareholder value growth, tangible book value^1 at September
    30, 2013 was $6.07 per common share, compared to $6.02 at December 31,
    2012.

"Our primary approach to building value is to build a strong balance sheet
that performs in a variety of economic and interest rate environments,"
Layfield explained. "We have invested in people, because long-term
performance, sustainability, and growth require experienced revenue-generating
loan officers, supported by a staff focused on outstanding execution. We
believe that we have developed the technology and operational capability to
drive growth while carefully monitoring credit quality and overall enterprise
risk management. We focus closely on ensuring risk-adjusted loan pricing,
because prudent growth is in our shareholders' best interest.

Xenith's loan portfolio at September 30, 2013 reflected balanced growth in C&I
and CRE lending since year end 2012, consistent with our objective to maintain
an appropriate loan mix. Our C&I portfolio covers a broad array of industries
in our target markets, and our CRE portfolio is heavily weighted toward loans
to strong, local developers and investors." Layfield noted that in the third
quarter of 2013, the bank acquired a $21 million portfolio of student loans,
which on average are nearly 98% U.S. government guaranteed, 20% risk-weighted,
and re-price every 90 days. Layfield commented: "We believe these guaranteed
student loans are an attractive asset class with acceptable risk-adjusted
returns and in the intermediate term, provide us with an opportunity to
further leverage our capital."

Operating Results

Income Statement

Total interest income for the three months ended September 30, 2013 was $6.9
million, compared to $6.8 million for the three months ended September 30,
2012. Interest income reflected stable interest and fees on loans, and
increased interest from securities. Average interest-earning assets in third
quarter 2013 were $554.2 million, up 8% from $513.1 million in third quarter
2012. Interest income for the nine months ended September 30, 2013, was $19.2
million, compared to $19.5 million for the same period of 2012. Interest
income in the nine month comparative periods reflected lower accretion from
acquired loans, further discussed below, and lower interest from securities.

Total interest expense for the three months ended September 30, 2013 was
$832,000, compared to $985,000 for the three months ended September 30, 2012.
For the nine months ended September 30, 2013, interest expense was $2.6
million, compared to $3.0 million for the same period of 2012. Lower interest
expense on higher average deposit balances contributed to enhanced
profitability.

Net interest income after provision for loan and lease losses was $5.6 million
in the third quarter of 2013, compared to $5.4 million in the third quarter of
2012, as net interest income increased moderately and the provision for loan
and lease losses remained relatively stable at $497,000 in the third quarter
of 2013, compared to the prior year's third quarter provision of $476,000. For
the nine-month period ended September 30, 2013, net interest income after loan
and lease loss provision was $15.7 million, compared to $15.1 million for the
same period of 2012, reflecting stable net interest income and a decline in
the company's loan loss provision to $913,000, compared to $1.4 million in the
same period of 2012. Net interest income after provision for loan losses in
the third quarter and nine-month 2013 periods was affected by margin pressure
and lower accretion on acquired loans, offset by lower provision expense due
to solid asset quality. Net interest margin in the third quarter of 2013 was
4.38% compared to 4.54% in the third quarter of 2012, while net interest
margin for the nine months ended September 30, 2013 was 4.04%, compared to
4.58% for the same nine-month period of 2012. Accretion of fair value
adjustments on acquired loans was $1.1 million in both third quarter 2013 and
2012, and $2.1 million and $2.7 million, respectively, in the nine-month
periods ended September 30, 2013 and 2012.

Total noninterest income was $345,000 in the third quarter of 2013, compared
to a loss of $14,000 in the third quarter of 2012, primarily reflecting growth
in service charges on deposit accounts, increased fees from treasury
management services, and fees associated with customer interest rate swaps.
For the nine months ended September 30, 2013, noninterest income increased to
$1.4 million, compared to $596,000 for the same nine months of 2012,
reflecting higher year-over-year income from service charges, fees, and other
income. The nine month period of 2013 included a $361,000 gain on the sale of
collateral on an impaired loan acquired in the 2011 Virginia Business Bank
transaction.

Noninterest expense in the third quarter of 2013 was $4.8 million, compared to
$4.4 million in the third quarter of 2012, and for the nine months ended
September 30, 2013 was $14.4 million, compared to $13.6 million for the same
prior year period. Layfield noted both the third quarter and nine-month 2013
periods reflect increased compensation and benefits, primarily related to the
company's hiring of experienced relationship managers in the Greater
Washington, D.C. and Richmond markets to drive organic loan and deposit
growth.

As previously noted, the company had income tax expense in both the third
quarter and nine-month periods of 2013. In both comparable periods of 2012,
the company had no income tax expense and a $5.0 million tax benefit due to
the reversal of the valuation allowance on the company's net deferred tax
asset. For purposes of comparison, net income before income tax in the third
quarters of 2013 and 2012 was $1.2 million and $1.0 million, respectively,
while net income before income tax in the nine months ended September 30, 2013
and 2012 was $2.6 million and $2.1 million, respectively.

Balance Sheet

Loans held for investment after allowance for loan and lease losses grew to
$432.3 million at September 30, 2013, compared to $379.0 million at December
31, 2012 and $393.6 million at June 30, 2013. Loan balances held for
investment at September 30, 2013 include $21 million of guaranteed student
loans purchased late in the third quarter. Loans held for sale, which
primarily reflect the company's participation in a mortgage warehouse lending
program, were $34.2 million at September 30, 2013, compared to $80.9 million
at December 31, 2012. The decline reflected lower mortgage refinancing
activity nationwide, which the company expects will continue to impact
balances in the fourth quarter until balances are at an insignificant level.
Layfield commented that additional investments in guaranteed student loans may
be a prudent use of cash freed up from the mortgage warehouse program.

Securities available for sale were $72.4 million at September 30, 2013,
compared to $57.6 million at December 31, 2012. Securities available for sale
as a percentage of the company's total assets were 12% at September 30, 2013.

Layfield commented: "Given the uncertain interest rate environment and our
desire to fund higher yielding loans with our excess liquidity, compared to
lower yielding securities, we continued to maintain investments of shorter
duration in our investment portfolio and a good balance of floating rate
investments."

Total assets were $606.3 million at September 30, 2013, compared to $563.2
million at December 31, 2012, primarily reflecting loan growth, cash and due
from banks, and higher levels of investment securities.

Growth in commercial banking relationships contributed to a 9% growth in total
deposits, which were $495.8 million at September 30, 2013, compared to $453.2
million at December 31, 2012. Noninterest-bearing demand accounts and
lower-interest money market accounts fueled the growth, providing additional
core deposit funding to support the company's lending activities. Average
deposit balances in the third quarter of 2013 were $485.5 million, compared to
$434.6 million in the comparable 2012 period.

Asset and Credit Quality

Balance sheet and asset quality continued to improve. At September 30, 2013,
ratios of nonperforming assets to total assets was 0.73%, nonperforming assets
to loans held for investment was 1.02%, and the company's allowance for loan
and lease losses to nonaccrual loans was 127%. Net charge-offs as a percentage
of average loans held for investment were 0.15% for the nine-month period
ended September 30, 2013.

Capital and Shareholder Value Measures

Capital ratios remained above regulatory standards for "well-capitalized"
banks, with a Tier 1 leverage ratio of 12.0%, a Tier 1 risk-based capital
ratio of 13.8%, and a total risk-based capital ratio of 14.9% at September 30,
2013.

As part of the company's share repurchase program announced in the third
quarter of 2013, under which the company may repurchase up to 210,000 shares
of its common stock, or approximately 2% of its currently outstanding shares,
the company repurchased 16,850 shares at an average price of $5.92 per share
during the third quarter for a total cost of $99,684.

Total shareholders' equity was $87.7 million at September 30, 2013, compared
to $87.5 million at December 31, 2012. The increase during third quarter in
longer term interest rates had a negative impact on the market value of the
company's securities portfolio, which reduces shareholders' equity. Tangible
book value^1 at September 30, 2013 was $6.07 per share, compared to $6.02 at
December 31, 2012. Return on average assets was 0.50% at September 30, 2013
compared to 0.24% at December 31, 2012. Return on average common equity
increased to 3.78% at September 30, 2013, compared to 1.68% at December 31,
2012.

Market Overview and Outlook

Layfield concluded: "We maintain a long-term perspective to building a premier
business banking franchise in the diverse and attractive markets Xenith
serves. We anticipate continued organic growth with an eye towards thoughtful
and prudent acquisitions or other transactions where and when appropriate. The
corporate culture we are building is an important consideration in acquisitive
growth, as we look at potential merger or acquisition candidates and their
respective shareholder bases as partners teaming with Xenith. We believe our
future is bright and are cautiously optimistic as the economy continues to
improve slowly."

Profile

Xenith Bankshares, Inc. is the holding company for Xenith Bank. Xenith Bank is
a full-service, locally-managed commercial bank, specifically targeting the
banking needs of middle market and small businesses, local real estate
developers and investors, private banking clients, and select retail banking
clients. As of September 30, 2013, the company had total assets of $606.3
million and total deposits of $495.8 million. Xenith Bank's target markets are
Greater Washington, DC, Richmond, VA, and Greater Hampton Roads, VA
metropolitan statistical areas. The company is headquartered in Richmond,
Virginia and currently has six branch locations in Tysons Corner, Richmond,
and Suffolk, Virginia. Xenith Bankshares common stock trades on the NASDAQ
Capital Market under the symbol "XBKS."

For more information about Xenith Bankshares and Xenith Bank, visit our
website: https://www.xenithbank.com/

All statements other than statements of historical facts contained in this
press release are forward-looking statements. Forward-looking statements made
in this press release reflect beliefs, assumptions and expectations of future
events or results, taking into account the information currently available to
Xenith Bankshares, Inc. These beliefs, assumptions and expectations may change
as a result of many possible events, circumstances or factors, not all of
which are currently known to Xenith Bankshares. If a change occurs, Xenith
Bankshares' business, financial condition, liquidity, results of operations
and prospects may vary materially from those expressed in, or implied by, the
forward-looking statements. Accordingly, you should not place undue reliance
on these forward-looking statements. Factors that may cause actual results to
differ materially from those contemplated by these forward-looking statements
include the risks discussed in Xenith Bankshares' public filings with the
Securities and Exchange Commission, including those outlined in Part I, Item
1A, "Risk Factors" of Xenith Bankshares' Annual Report on Form 10-K for the
year ended December 31, 2012. Except as required by applicable law or
regulations, Xenith Bankshares does not undertake, and specifically disclaims
any obligation, to update or revise any forward-looking statement.

^1 Please see the discussion of non-GAAP financial measures at the end of the
financial tables.

                      -Selected Financial Tables Follow-




XENITH BANKSHARES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2013 AND DECEMBER 31, 2012

                                         (Unaudited)      
(in thousands, except share data)         September 30, 2013 December 31, 2012
Assets                                                      
Cash and cash equivalents                                   
Cash and due from banks                   $ 23,604          $ 9,457
Federal funds sold                        935               2,906
Total cash and cash equivalents           24,539            12,363
Securities available for sale, at fair    72,449            57,551
value
Loans held for sale                       34,247            80,867
Loans held for investment, net of
allowance for loan and lease losses, 2013 432,269           379,006
- $5,129; 2012 - $4,875
Premises and equipment, net               5,117             5,397
Other real estate owned                   400               276
Goodwill and other intangible assets, net 15,716            15,989
Accrued interest receivable               1,462             1,606
Deferred tax asset                        4,354             4,094
Bank owned life insurance                 9,606             --
Other assets                              6,101             6,057
Total assets                              $ 606,260         $ 563,206
Liabilities and Shareholders' Equity                        
Deposits                                                    
Demand and money market                   $ 333,179         $ 317,526
Savings                                   4,561             4,069
Time                                      158,081           131,636
Total deposits                            495,821           453,231
Accrued interest payable                  227               232
Borrowings                                20,000            20,000
Other liabilities                         2,512             2,196
Total liabilities                         518,560           475,659
Shareholders' equity                                        
Preferred stock, $1.00 par value, $1,000
liquidation value, 25,000,000 shares
authorized as of September 30, 2013 and   8,381             8,381
December 31, 2012; 8,381 shares issued
and outstanding as of September 30, 2013
and December 31, 2012
Common stock, $1.00 par value,
100,000,000 shares authorized as of
September 30, 2013 and December 31, 2012;
10,471,210 shares issued and outstanding  10,471            10,488
as of September 30, 2013 and 10,488,060
shares issued and outstanding as of
December 31, 2012
Additional paid-in capital                71,812            71,414
Accumulated deficit                       (2,005)           (3,660)
Accumulated other comprehensive (loss)    (959)             924
income, net of tax
Total shareholders' equity                87,700            87,547
Total liabilities and shareholders'       $ 606,260         $ 563,206
equity
                                                           
See notes to consolidated financial                         
statements.




XENITH BANKSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
(Unaudited)
                                                         
(in thousands, except per share data)  September 30, 2013 September 30, 2012
Interest income                                           
Interest and fees on loans             $ 6,481            $ 6,431
Interest on securities                 350                320
Interest on federal funds sold and     63                 62
deposits in other banks
Total interest income                  6,894              6,813
Interest expense                                          
Interest on deposits                   510                683
Interest on time certificates of       226                209
$100,000 and over
Interest on federal funds purchased    96                 93
and borrowed funds
Total interest expense                 832                985
Net interest income                    6,062              5,828
Provision for loan and lease losses    497                476
Net interest income after provision    5,565              5,352
for loan and lease losses
Noninterest income                                        
Service charges on deposit accounts    113                81
Net loss on sale and write-down of
other real estate owned and other      (4)                (148)
collateral
Gain on sales of securities            --                 1
Increase in cash surrender value of    83                 --
bank owned life insurance
Other                                  153                52
Total noninterest income               345                (14)
Noninterest expense                                       
Compensation and benefits              2,800              2,581
Occupancy                              378                355
FDIC insurance                         96                 58
Bank franchise taxes                   188                160
Technology                             400                385
Communications                         65                 68
Insurance                              74                 73
Professional fees                      283                325
Other real estate owned                2                  8
Amortization of intangible assets      91                 91
Other                                  382                281
Total noninterest expense              4,759              4,385
Income before income tax               1,151              953
Income tax expense (benefit)           403                (4,950)
Net income                             748                5,903
Preferred stock dividend               (21)               (21)
Net income available to common         $ 727              $ 5,882
shareholders
Earnings per common share (basic and   $ 0.07             $ 0.56
diluted):
                                                         
See notes to consolidated financial statements.




XENITH BANKSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
(Unaudited)
                                                         
(in thousands, except per share data)  September 30, 2013 September 30, 2012
Interest income                                           
Interest and fees on loans             $ 18,099           $ 18,127
Interest on securities                 870                1,151
Interest on federal funds sold and     217                205
deposits in other banks
Total interest income                  19,186             19,483
Interest expense                                          
Interest on deposits                   1,625              2,019
Interest on time certificates of       715                715
$100,000 and over
Interest on federal funds purchased    282                279
and borrowed funds
Total interest expense                 2,622              3,013
Net interest income                    16,564             16,470
Provision for loan and lease losses    913                1,383
Net interest income after provision    15,651             15,087
for loan and lease losses
Noninterest income                                        
Service charges on deposit accounts    312                213
Net gain (loss) on sale and write-down
of other real estate owned and other   342                (19)
collateral
Gain on sales of securities            291                220
Increase in cash surrender value of    106                --
bank owned life insurance
Other                                  329                182
Total noninterest income               1,380              596
Noninterest expense                                       
Compensation and benefits              8,548              8,095
Occupancy                              1,112              1,091
FDIC insurance                         304                239
Bank franchise taxes                   601                454
Technology                             1,220              1,190
Communications                         186                207
Insurance                              222                221
Professional fees                      792                834
Other real estate owned                4                  10
Amortization of intangible assets      273                274
Other                                  1,126              971
Total noninterest expense              14,388             13,586
Income before income tax               2,643              2,097
Income tax expense (benefit)           925                (4,950)
Net income                             1,718              7,047
Preferred stock dividend               (63)               (68)
Net income available to common         $ 1,655            $ 6,979
shareholders
Earnings per common share (basic and   $ 0.16             $ 0.67
diluted):
                                                         
See notes to consolidated financial statements.

                                                                          
                                                                          
                                                                          
CONSOLIDATED FINANCIAL                                                     
HIGHLIGHTS (Unaudited)
($ in thousands, except per                                                
share data)
                                                                          
PERFORMANCE RATIOS             Quarter Ended                                    Year
                                                                                 Ended
                              September  June 30, March    December September  
                               30,                 31,      31,      30,
                              2013       2013     2013     2012     2012       2012
Net interest margin (1)       4.38%      3.90%    3.83%    4.18%    4.54%      4.47%
Return on average assets (2)   0.50%      0.39%    0.29%    0.24%    4.38%      1.42%
Return on average common       3.78%      2.77%    2.10%    1.68%    31.86%     9.89%
equity (3)
Efficiency ratio (4)           74%        85%      82%      80%      75%        80%
Net income                     $748     552     418     332     5,903     7,379
Earnings per common share      $0.07    0.05    0.04    0.03    0.56      0.70
(basic and diluted)
______________________________                                             
(1) Net interest margin is net interest income divided by average                            
interest-earning assets.
(2) Return on average assets is net income for the respective period (annualized         
for quarter periods) divided by average assets for the respective period.
(3) Return on average equity is net income for the respective period (annualized         
for quarter periods) divided by average equity for the respective period.
(4) Efficiency ratio is non-interest expenses divided by the sum of net interest           
income and non-interest income.
                                                                          
ASSET QUALITY RATIOS           Quarter Ended                                    
                              September  June 30, March    December September  
                               30,                 31,      31,      30,
                              2013       2013     2013     2012     2012       
Net charge-offs as a
percentage of average loans    0.15%      0.11%    0.04%    0.35%    0.28%      
held for investment
Allowance for loan and lease
losses (ALLL) as a percentage  1.17%      1.23%    1.35%    1.27%    1.37%      
of total loans held for
investment (1)
ALLL plus remaining discounts
(fair value adjustments) on
acquired loans as a percentage 2.34%      2.96%    3.31%    3.32%    3.91%      
of total loans held for
investment (2)
ALLL to nonaccrual loans (1)   126.59%    100.08%  104.35%  96.16%   95.94%     
Nonperforming assets as a
percentage of total loans held 1.02%      1.29%    1.37%    1.39%    1.52%      
for investment
Nonperforming assets as a      0.73%      0.89%    0.89%    0.95%    0.93%      
percentage of total assets
______________________________                                             
(1) ALLL excludes discounts (fair value adjustments) on acquired loans.                    
(2) Ratio is a non-GAAP financial measure calculated as the sum of ALLL and
discounts (fair value adjustments) on acquired loansheld for investment                
divided by the sum of total loans held for investment and discounts on
loans.See discussion of non-GAAP financial measures below.
                                                                          
CAPITAL RATIOS                 Quarter Ended                                    
                              September  June 30, March    December September  
                               30,                 31,      31,      30,
                              2013       2013     2013     2012     2012       
Tier 1 leverage ratio          12.01%     12.39%   12.23%   12.90%   13.02%     
Tier 1 risk-based capital      13.82%     13.69%   14.60%   15.39%   17.01%     
ratio
Total risk-based capital ratio 14.89%     14.71%   15.75%   16.52%   18.24%     
Book value per common share    $7.58    7.51    7.57    7.55    7.54      
(1)
Tangible book value per common $6.07    6.00    6.05    6.02    6.00      
share (2)
______________________________                                             
(1) Book value per common share is total shareholders' equity less preferred
stock divided by common shares outstanding at the end of the respective         
period.
(2) Tangible book value per common share is a non-GAAP financial measure
calculated as total shareholders' equity less the sum of preferred stock and
goodwilland other intangible assets divided by common shares outstanding at   
the end of the respective period.See discussion of non-GAAP financial
measures below.
                                                                          
AVERAGE BALANCES (1)           Quarter Ended                                    Year
                                                                                 Ended
                              September  June 30, March    December September  
                               30,                 31,      31,      30,
                              2013       2013     2013     2012     2012       2012
Total assets                   $597,476 570,991 577,050 558,133 539,544   519,330
Loans held for sale            $50,179  62,396  66,434  72,676  75,396    49,579
Loans held for investment, net
of allowance for loan and      $402,703 372,746 369,688 351,335 333,346   332,507
lease losses
Total deposits                 $485,511 460,288 466,018 447,829 434,640   413,808
Shareholders' equity           $87,598  88,153  87,907  87,623  82,485    83,010
______________________________                                             
(1) Average balances are                                                   
computed on a daily basis.
                                                                          
END OF PERIOD BALANCES         Quarter Ended                                    
                              September  June 30, March    December September  
                               30,                 31,      31,      30,
                              2013       2013     2013     2012     2012       
Total assets                   $606,260 578,931 579,853 563,206 558,011   
Loans held for sale            $34,247  61,861  68,905  80,867  74,632    
Loans held for investment, net
of allowance for loan and      $432,269 393,591 372,052 379,006 336,495   
lease losses
Total deposits                 $495,821 464,676 468,798 453,231 448,144   
Shareholders' equity           $87,700  87,138  87,772  87,547  87,172    
                                                                          
RECONCILIATION OF GAAP TO                                                  
NON-GAAP FINANCIAL MEASURES
                              Quarter Ended                                    
                              September  June 30, March    December September  
                               30,                 31,      31,      30,
ALLL + Discount / Gross Loans  2013       2013     2013     2012     2012       
Allowance for loan and lease   $5,129   4,882   5,099   4,875   4,658     
losses
Add:Discounts (fair value     $5,237   7,134   7,631   8,133   9,040     
adjustments) on acquired loans
Total ALLL + discounts on      10,366    12,016  12,730  13,008  13,698    
acquired loans
Gross loans held for
investment + discounts (fair   442,635   405,607 384,782 392,014 350,193   
value adjustments) on acquired
loans
ALLL plus discounts (fair
value adjustments) on acquired 2.34%      2.96%    3.31%    3.32%    3.91%      
loans as a percentage of total
loans held for investment
                                                                          
                                                                          
Tangible book value per common                                             
share
Total shareholders' equity     87,700    87,138  87,772  87,547  87,172    
Deduct:Preferred stock        8,381     8,381   8,381   8,381   8,381     
Common shareholders' equity    79,319    78,757  79,391  79,166  78,791    
Deduct:Goodwill and other     $15,716  15,807  15,898  15,989  16,080    
intangible assets
Tangible common shareholders'  63,603    62,950  63,493  63,177  62,711    
equity
Common shares outstanding      10,471    10,488  10,488  10,488  10,447    
Tangible book value per common $6.07    6.00    6.05    6.02    6.00      
share
______________________________                                             
Allowance for loan and lease losses (ALLL) plus discounts on acquired loans as
a percentage of total loans held for investment and tangible book value per
share are supplemental financial measures that are not required by, or
presented in accordance with, U.S. GAAP.Management believes that ALLL plus
discounts on acquired loans held for investment is meaningful because it is
one of the measures we use to assess our asset quality.Management believes
that tangible book value per common share is meaningful because it is one of    
the measures we use to assess capital adequacy.Set forth above are
reconciliations of each of these non-GAAP financial measures calculated and
reported in accordance with GAAP.Book value is the same as shareholders'
equity presented on our consolidated balance sheets.Our calculations of these
non-GAAP financial measures may not be comparable to the calculation of
similarly titled measures reported by other companies.

CONTACT: Thomas W. Osgood
         Executive Vice President, Chief Financial Officer,
         Chief Administrative Officer and Treasurer
         (804) 433-2209
         tosgood@xenithbank.com

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