RICHMOND, Va., July 30, 2021 /PRNewswire/ -- Community
Bankers Trust Corporation (the "Company") (NASDAQ: ESXB), the
holding company for Essex Bank (the "Bank"), today reported results
for the quarter ended June 30,
2021.
FINANCIAL HIGHLIGHTS
- Net income was $5.4 million for
the quarter ended June 30, 2021,
compared with net income of $6.6
million in the first quarter of 2021 and net income of
$4.2 million in the second quarter of
2020.
- There was no provision for loan losses recorded for the
quarter. In the first quarter of 2021 the allowance for loan losses
reflected a reserve recovery of $1.4
million.
- Net interest income was $14.5
million for the second quarter of 2021, a linked quarter
increase of $419,000, or 3.0%.
- Interest on deposits declined $218,000 on a linked quarter basis, and the
associated cost of funds declined from 0.58% to 0.48%.
- Merger related expenses of $570,000 were incurred in the second
quarter.
- Diluted earnings per share were $0.24 for the second quarter of 2021 compared
with $0.30 for the first quarter of
2021 and $0.18 for the second quarter
of 2020.
- Return on average assets (ROA) was 1.28% for the second quarter
of 2021 compared with 1.60% for the first quarter of 2021 and 1.06%
for the second quarter of 2020. For the first six months, the ROA
was 1.44% in 2021 and 0.88% for 2020.
- Return on average equity (ROE) was 12.46% for the second
quarter of 2021 compared with 15.46% for the first quarter of 2021
and 10.46% for the second quarter of 2020. For the first six
months, the ROE was 13.95% for 2021 compared with 8.30% for
2020.
OPERATING HIGHLIGHTS
- Loans, excluding purchased credit impaired (PCI) loans,
declined $10.9 million, or 0.9%,
during the second quarter of 2021. Loans grew $26.5 million, or 2.3%, year over year.
- In April 2021, the Company sold
an item included in other real estate owned at March 31, 2021 in the amount of $3.8 million.
- Nonperforming assets were $3.9
million at June 30, 2021,
$4.8 million lower than one year
earlier. The ratio of nonperforming assets to loans and other real
estate was 0.33% at June 30, 2021
compared with 0.65% at March 31, 2021
and 0.74% one year earlier.
- Deposits grew $49.5 million, or
3.4%, during the second quarter of 2021, and have grown
$125.2 million, or 9.2%, year over
year.
- Noninterest bearing deposits grew $60.9
million, or 21.9%, year over year.
- Net interest margin was 3.58% in the second quarter of 2021
compared with 3.66% in the first quarter of 2021 and 3.40% in the
second quarter of 2020. The net interest margin was 3.62% for the
first six months of 2021 compared with 3.53% for the same period in
2020.
- PPP loan balances, net of fees, decreased $15.7 million during the second quarter of 2021
and were $52.0 million at
June 30, 2021 compared with
$49.3 million at December 31, 2020 and $83.5 million at June 30,
2020.
- As a result of the deposit growth noted above, total securities
and cash and equivalents grew $76.4
million during the second quarter and substantially
increased liquidity.
On June 2, 2021, the Company
entered into a merger agreement with United Bankshares, Inc.
("United"), the parent company of United Bank. Under the
merger agreement, United will acquire 100% of the outstanding
shares of the Company's common stock in exchange for shares of
United's common stock. The exchange ratio will be fixed at
0.3173 of United's shares for each share of the Company. The
merger is expected to close in the fourth quarter of 2021, subject
to satisfaction of customary closing conditions, including receipt
of regulatory approvals and approval by the Company's
shareholders. Upon closing, the Company will merge into
United, and Essex Bank will merge into United Bank, with United and
United Bank being the surviving entities.
MANAGEMENT COMMENTS
Rex L. Smith, III, President and
Chief Executive Officer, stated, "The balance sheet continues to
strengthen with asset quality and liquidity at the best levels in
the history of the Company. Net interest margin continues to
improve and while year to date loan growth is below expectations we
remain positive for the rest of 2021."
Smith added, "Noninterest expenses were up for the quarter as we
prepare for the pending merger. We are excited to become a
part of United Bank as their enhanced product offerings and size
will make us much more competitive in our markets. The merger is
expected to become effective in December of this year, pending all
closing conditions."
RESULTS OF OPERATIONS
Overview
Linked Quarter Basis
Net income was $5.4 million for the
second quarter of 2021, compared with net income of $6.6 million in the first quarter of 2021.
Earnings per share were $0.24 basic
and fully diluted for the second quarter of 2021 and $0.30 basic and fully diluted for the first
quarter of 2021. Provision for loan losses reflected a credit of
$1.4 million for the first quarter of
2021 compared with no provision in the second quarter of 2021.
Continued improvement in credit quality and loan risk ratings was
the driver behind the recapture in the first quarter of previous
provision. There was a more stable economic climate in the first
and second quarters of 2021 compared with each quarter in 2020. Net
interest income increased by $419,000
in the second quarter compared with the first quarter of 2021. Net
interest income was positively affected by a continuation of
decreasing costs in interest expense, which declined $215,000 on a linked quarter basis, and by an
increase of $204,000 in interest and
dividend income. Noninterest income decreased $167,000 on a linked quarter basis while
noninterest expenses increased by $437,000, driven by merger related expenses of
$570,000. Income tax expense
decreased $368,000 in the second
quarter of 2021 compared with the prior quarter. Details of the
linked quarter financial performance of the Company are presented
below.
Year-over-Year Second Quarter
Net income in the second quarter of 2021 increased $1.3 million when compared to the same period in
2020. Net income was $5.4
million in the second quarter of 2021, with earnings per
share of $0.24 basic and fully
diluted. Net income for the second quarter of 2020 was
$4.2 million, with earnings per share
of $0.19 basic and $0.18 fully diluted. There was an increase of
$2.1 million in net interest income,
primarily from a decline in interest expense of $1.8 million in the second quarter of 2021
compared with the same period one year earlier. Provision for loan
losses decreased $900,000 year over
year and is reflective of no provision taken during the second
quarter of 2021. Offsetting these increases to net income were an
increase of $1.3 million in
noninterest expenses and a decrease of $155,000 in noninterest income. There was also an
increase of $297,000 in income tax
expense year over year. Details of the year-over-year financial
performance of the Company are presented below.
Year-over-Year Six Months
Net income of $12.1 million for the
first six months of 2021 reflects an increase of $6.5 million, or 116.5%, over net income of
$5.6 million for the same period in
2020. Provision for loan losses reflects a reserve recovery of
$1.4 million for the first six months
of 2021 compared with a provision of $4.2
million during the early stage of the COVID-19 pandemic for
the first six months of 2020. Interest expense declined
$3.8 million and was $3.3 million for the first six months of 2021
compared with $7.1 million for the
first six months of 2020. Smaller increases were in interest and
dividend income, which increased $227,000, and in noninterest income, which
increased $138,000 in the first six
months of 2021 compared with the same period in 2020. Offsetting
these increases to net income were an increase of $1.5 million in noninterest expenses, which were
$17.9 million for the first six
months of 2021, and $1.7 million
greater expense in income taxes, which were $3.0 million for the first six months of
2021.
The following table presents summary income statements for the
three months ended June 30, 2021,
March 31, 2021 and June 30, 2020 and six months ended June 30, 2021 and June 30,
2020.
SUMMARY INCOME
STATEMENT
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
For the six months
ended
|
|
|
30-Jun-21
|
|
31-Mar-21
|
|
30-Jun-20
|
|
30-Jun-21
|
|
30-Jun-20
|
Interest
income
|
$
|
16,064
|
$
|
15,860
|
$
|
15,751
|
$
|
31,924
|
$
|
31,697
|
Interest
expense
|
|
1,567
|
|
1,782
|
|
3,391
|
|
3,349
|
|
7,099
|
Net interest
income
|
|
14,497
|
|
14,078
|
|
12,360
|
|
28,575
|
|
24,598
|
(Recovery of)
provision for loan losses
|
|
0
|
|
(1,400)
|
|
900
|
|
(1,400)
|
|
4,200
|
Net interest income
after (recovery of ) provision for loan losses
|
|
14,497
|
|
15,478
|
|
11,460
|
|
29,975
|
|
20,398
|
Noninterest
income
|
|
1,461
|
|
1,628
|
|
1,616
|
|
3,089
|
|
2,951
|
Noninterest
expense
|
|
9,192
|
|
8,755
|
|
7,873
|
|
17,947
|
|
16,467
|
Income before income
taxes
|
|
6,766
|
|
8,351
|
|
5,203
|
|
15,117
|
|
6,882
|
Income tax
expense
|
|
1,340
|
|
1,708
|
|
1,043
|
|
3,048
|
|
1,307
|
Net income
|
$
|
5,426
|
$
|
6,643
|
$
|
4,160
|
$
|
12,069
|
$
|
5,575
|
|
|
|
|
|
|
|
|
|
|
|
EPS Basic
|
$
|
0.24
|
$
|
0.30
|
$
|
0.19
|
$
|
0.54
|
$
|
0.25
|
EPS
Diluted
|
$
|
0.24
|
$
|
0.30
|
$
|
0.18
|
$
|
0.53
|
$
|
0.25
|
Fully Diluted share
count
|
|
22,733
|
|
22,416
|
|
22,508
|
|
22,574
|
|
22,550
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets, annualized
|
|
1.28%
|
|
1.60%
|
|
1.06%
|
|
1.44%
|
|
0.88%
|
Return on average
equity, annualized
|
|
12.46%
|
|
15.46%
|
|
10.46%
|
|
13.95%
|
|
8.30%
|
Net Interest Income
Linked Quarter Basis
Net interest income was $14.5 million
for the quarter ended June 30, 2021.
This was a linked quarter increase of $419,000, or 3.0%. Interest and dividend income
on a linked quarter basis increased $204,000, or 1.3%, to $16.1 million for the second quarter of
2021. Interest and dividend income on taxable securities
increased $228,000 in the second
quarter compared with the first quarter of 2021 and was
$1.7 million. Excess liquidity was
invested in the second quarter, and the average balance of taxable
securities increased by $37.6
million, or 16.0%, over the prior quarter. Interest income
with respect to loans, excluding PCI loans, increased $46,000, or 0.3%, during the second quarter of
2021 when compared with the first quarter of 2021. Interest income
on PCI loans decreased $72,000 on a
linked quarter basis as the average balance declined $3.4 million.
The average balance of loans, excluding PCI loans, increased by
$13.3 million, or 1.1%, on a linked
quarter basis, to $1.205 billion for
the second quarter of 2021. However, loans that paid off late in
the second quarter of 2021 reduced the period end balance below the
average for the second quarter, and loans totaled $1.192 billion at period end. The yield on
loans for the second quarter of 2021 was 4.39% compared with 4.48%
in the first quarter of 2021. The yield on all loans for the second
quarter of 2021 was 4.58% and 4.68% for the first quarter of
2021.
Interest income on securities was $2.0
million in the second quarter of 2021 compared with
$1.8 million in the first quarter of
2021. Interest bearing bank balances income was $54,000 in the second quarter of 2021 compared
with $60,000 in the first quarter of
2021.
Interest income on securities on a tax-equivalent basis equaled
$2.1 million for the second quarter
of 2021 and $1.9 million for the
first quarter of 2021. The tax-equivalent yield on the securities
portfolio was 2.63% in the second quarter of 2021 compared with
2.65% in the first quarter of 2021. The average balance of
securities increased $38.7 million
during the second quarter of 2021 as excess liquidity was invested
by the Company. As a result of these changes in rate and volume,
the yield on earning assets decreased from 4.12% in the first
quarter of 2021 to 3.97% in the second quarter of 2021.
Interest expense of $1.6 million
in the second quarter of 2021 was a decrease of $215,000, or 12.1%, on a linked quarter basis.
Interest on deposits decreased $218,000, or 13.9%. The cost of interest bearing
deposits decreased from 0.58% in the first quarter of 2021 to 0.48%
in the second quarter of 2021. The Company's cost of interest
bearing liabilities of 0.52% in the second quarter of 2021 was a
decrease of 10 basis points from the prior quarter when the cost of
interest bearing liabilities was 0.62%.
With the changes in net interest income noted above, the
tax-equivalent net interest margin decreased on a linked quarter
basis and was 3.58% in the second quarter of 2021 compared with
3.66% in the first quarter of 2021. The interest spread was 3.45%
for the current quarter compared with 3.50% in the prior quarter.
The Company also examined the effects on the net interest margin
without the effects of PPP net fees, interest income and average
balances. Excluding these PPP related items from the net interest
margin calculation would have resulted in a margin of 3.54% in the
second quarter of 2021 compared with the actual margin of
3.58%. The same exclusion of PPP related items would have
resulted in a margin of 3.59% in the first quarter of 2021 compared
with the actual margin of 3.66%. The yield on the loan portfolio
would have been 4.38% in the second quarter of 2021 when excluding
the PPP related items versus the actual yield of 4.39%. The yield
on the loan portfolio would have been 4.43% in the first quarter of
2021 when excluding the PPP related items versus the actual yield
of 4.48% with the PPP related items. The yield on earning assets
would have been 3.94% without the PPP related items as opposed to
the actual yield of 3.97% when including the PPP related
items. For the first quarter of 2021, the yield on earning
assets would have been 4.07% without the PPP related items as
opposed to the actual yield of 4.12% when including the PPP related
items.
Year-over-Year Second Quarter
Net interest income increased $2.1
million, or 17.3%, from the second quarter of 2020 to the
second quarter of 2021. Net interest income was $14.5 million in the second quarter of 2021
compared with $12.4 million for the
same period in 2020. Interest and dividend income increased
$313,000, or 2.0%, over this time
period. In the second quarter of 2021, $562,000 in PPP net origination fees were
recognized as income versus $304,000
in the same period of 2020. Interest and fees on loans were
$13.2 million in the second quarter
of 2021, an increase of $184,000, or
1.4%, over the same period in 2020. Interest and fees on PCI loans
decreased by $278,000 and were
$784,000 in the second quarter of
2021. Securities income was $2.0
million in the second quarter of 2021, an increase of
$394,000 over the same period in
2020. Income on interest on deposits in other banks increased by
$13,000 year over year.
The average balance of the loan portfolio, excluding PCI loans,
increased by $58.7 million year over
year and averaged $1.205 billion for
the second quarter of 2021. The average balance of the PCI
portfolio declined $10.2 million
during the year-over-year comparison period. The average balance of
securities increased by $82.8 million
in the second quarter of 2021 compared with the same period one
year earlier. The average balance of total earning assets increased
$165.0 million, or 11.2%, from the
second quarter of 2020 to the second quarter of 2021. The yield on
earning assets decreased from 4.33% in the second quarter of 2020
to 3.97% in the second quarter of 2021. The change in yield on
earning assets was the culmination of decreases in the yield on all
loans, from 4.80% in the second quarter of 2020 to 4.58% in the
second quarter of 2021, in the tax-equivalent yield on securities,
from 2.88% in the second quarter of 2020 to 2.63% in the second
quarter of 2021, and in the yield on interest bearing bank
balances, from 0.31% to 0.25% year over year.
Interest expense decreased $1.8
million, or 53.8%, when comparing the second quarter of 2021
and the second quarter of 2020. Interest expense on deposits
decreased $1.8 million, or 57.7%, as
the cost declined from 1.20% in the second quarter of 2020 to 0.48%
for the same period in 2021. The average balance of interest
bearing deposits increased $60.2
million, or 5.6%. This growth was from non-maturity deposit
sources. First, there was an increase of $86.7 million, or 47.7%, in the average balance
of interest bearing checking accounts, which averaged $268.5 million in the second quarter of 2021.
Additionally, there was an increase of $81.5
million in the average balance of savings and money market
accounts from the second quarter of 2020 to the same period in
2021. Offsetting these increases was a decrease of $108.0 million in the average balance of time
deposits, to $535.5 million for the
second quarter of 2021. FHLB and other borrowings costs were stable
over the time frame and were 1.22% in the second quarter of 2021
compared with 1.15% for the same period in 2020. All of the above
contributed to the reduction of interest expense for interest
bearing liabilities by $1.8 million
despite an increase of $60.1 million
in the average amount outstanding. Also noteworthy is that,
although not an interest bearing category, a sizeable amount of
funding was generated in the second quarter of 2021 by a
year-over-year average balance increase of $83.7 million in noninterest bearing deposits.
The amount of liquidity in the banking system, along with lower
interest rates and a shift in deposit balances, decreased the cost
of interest bearing liabilities from 1.19% in the second quarter of
2020 to 0.52% in the second quarter of 2021.
The tax-equivalent net interest margin increased 18 basis
points, from 3.40% in the second quarter of 2020 to 3.58% in the
second quarter of 2021. Likewise, the interest spread increased
from 3.14% to 3.45% over the same time period. The increase
in the margin was precipitated by a decrease of 36 basis points in
the yield on earning assets compared with a greater decline of 67
basis points in the cost of interest bearing liabilities applied
against growth of $165.0 million, or
11.2%, in earning assets. As noted in the linked quarter discussion
above, without the effects of PPP related items the net interest
margin would have been 3.54% in the second quarter of 2021.
Year-over-Year Six Months
Net interest income was $28.6 million
for the first six months of 2021. This is an increase of
$4.0 million, or 16.2%, from net
interest income of $24.6 million for
the first six months of 2020. Interest and dividend income
increased by $227,000 over this time
frame. Interest and dividend income was impacted by volume
increases offset by a decline in yield. First, there was an
increase of $248,000, or 1.0%, in
interest and fees on loans, which increased as a result of growth
of $92.5 million, or 8.4%, in the
average balance of loans in 2021 over 2020. The yield on loans
declined from 4.73% for the first six months of 2020 to 4.43% for
the same period in 2021. Interest and fees on PCI loans
declined by $519,000, or 24.0%. The
yield on the PCI portfolio was 15.16% for the first six months of
2021 compared with 13.94% for the first six months of 2020.
Interest and dividends on securities increased by $494,000 in the first six months of 2021 compared
with the same period in 2020. The average balance of the securities
portfolio increased $67.7 million, or
28.7%, and the yield declined from 2.98% for the first six months
of 2020 to 2.64% for the same period in 2021. The yield on earning
assets was 4.04% for the first six months of 2021, a decline of 50
basis points from 4.54% in the first six months of 2020. The yield
on total loans, which includes PCI loans and PPP loans, declined
from 4.99% for the first six months of 2020 compared to 4.63% for
the same period in 2021.
Interest expense of $3.3 million
for the first six months of 2021 was a decrease of $3.8 million, or 52.8%, from interest expense of
$7.1 million for the first six months
of 2020. The cost of interest bearing liabilities decreased over
this time frame from 1.28% for the first six months of 2020 to
0.57% for the same period in 2021. Interest on deposits decreased
$3.7 million due to a decline in the
rate paid from 1.27% for the first six months of 2020 to 0.53% for
the first six months of 2021. The average balance of interest
bearing liabilities increased over this time frame by $64.7 million, or 5.8%. Short term borrowing
expense decreased by $23,000, and the
cost of FHLB and other borrowings decreased by $38,000, or 8.0%, as the rate paid decreased from
1.36% for the first six months of 2020 to 1.23% for the first six
months of 2021.
The changes noted to interest income and interest expense led to
an increase in the net interest margin from 3.53% for the first six
months of 2020 to 3.62% for the same period in 2021. The interest
spread also increased over this time frame from 3.26% in 2020 to
3.47% in 2021. Excluding PPP related items from the net interest
margin calculation would have resulted in a margin of 3.57% for the
first six months of 2021 compared with the actual margin of 3.62%.
Excluding PPP related items from the net interest margin
calculation for the first six months of 2020 would have resulted in
a margin of 3.54% for the first six months of 2020 compared with
the actual margin of 3.53%. The yield on the loan portfolio
for the first six months of 2021 would have been 4.40% excluding
PPP related items versus the actual yield of 4.43%. The yield on
the loan portfolio for the first six months of 2020 would have been
4.78% excluding PPP related items versus the actual yield of 4.73%
with PPP related items. The yield on earning assets for the first
six months of 2021 would have been 4.00% without PPP related items
as opposed to the actual yield of 4.04%. The yield on earning
assets for the first six months of 2020 would have been 4.58%
without PPP related items as opposed to the actual yield of 4.54%
that included the PPP related items.
The following table compares the Company's net interest margin,
on a tax-equivalent basis, for the three months ended June 30, 2021, March 31,
2021 and June 30, 2020 and the
six months ended June 30 2021 and
June 30, 2020.
NET INTEREST
MARGIN
|
|
|
|
|
|
|
|
|
|
(Unaudited)
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
|
30-Jun-21
|
|
|
31-Mar-21
|
|
|
30-Jun-20
|
|
Average interest
earning assets
|
$
|
1,633,672
|
|
$
|
1,569,107
|
|
$
|
1,468,702
|
|
Interest
income
|
$
|
16,064
|
|
$
|
15,860
|
|
$
|
15,751
|
|
Interest income -
tax-equivalent
|
$
|
16,153
|
|
$
|
15,947
|
|
$
|
15,844
|
|
Yield on interest
earning assets
|
|
3.97
|
%
|
|
4.12
|
%
|
|
4.33
|
%
|
Average interest
bearing liabilities
|
$
|
1,199,036
|
|
$
|
1,162,577
|
|
$
|
1,138,908
|
|
Interest
expense
|
$
|
1,567
|
|
$
|
1,782
|
|
$
|
3,391
|
|
Cost of interest
bearing liabilities
|
|
0.52
|
%
|
|
0.62
|
%
|
|
1.19
|
%
|
Net interest
income
|
$
|
14,497
|
|
$
|
14,078
|
|
$
|
12,360
|
|
Net interest income -
tax-equivalent
|
$
|
14,586
|
|
$
|
14,165
|
|
$
|
12,453
|
|
Interest
spread
|
|
3.45
|
%
|
|
3.50
|
%
|
|
3.14
|
%
|
Net interest
margin
|
|
3.58
|
%
|
|
3.66
|
%
|
|
3.40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
ended
|
|
|
|
|
|
30-Jun-21
|
|
|
30-Jun-20
|
|
|
|
|
Average interest
earning assets
|
$
|
1,601,567
|
|
$
|
1,406,804
|
|
|
|
|
Interest
income
|
$
|
31,924
|
|
$
|
31,697
|
|
|
|
|
Interest income -
tax-equivalent
|
$
|
32,100
|
|
$
|
31,881
|
|
|
|
|
Yield on interest
earning assets
|
|
4.04
|
%
|
|
4.54
|
%
|
|
|
|
Average interest
bearing liabilities
|
$
|
1,180,908
|
|
$
|
1,116,246
|
|
|
|
|
Interest
expense
|
$
|
3,349
|
|
$
|
7,099
|
|
|
|
|
Cost of interest
bearing liabilities
|
|
0.57
|
%
|
|
1.28
|
%
|
|
|
|
Net interest
income
|
$
|
28,575
|
|
$
|
24,598
|
|
|
|
|
Net interest income -
tax-equivalent
|
$
|
28,751
|
|
$
|
24,782
|
|
|
|
|
Interest
spread
|
|
3.47
|
%
|
|
3.26
|
%
|
|
|
|
Net interest
margin
|
|
3.62
|
%
|
|
3.53
|
%
|
|
|
|
Provision for Loan Losses
The Company records a separate provision for loan losses for its
loan portfolio, excluding PCI loans, and the PCI loan
portfolio. There was no provision for loan losses in the
second quarter of 2021 compared with a recovery of $1.4 million in the first quarter of 2021 on the
loan portfolio, excluding PCI loans. This compares with
$900,000 in provision for loan losses
for the second quarter of 2020. The recovery of $1.4 million of provision for loan losses for the
first six months of 2021 compares with a provision of $4.2 million for the first six months of
2020.
The recovery of provision recorded in the first quarter of 2021
was due to continued improvement in the quality of the loan
portfolio and an overall improvement in the risks associated with
the potential economic impact of the COVID-19 pandemic, which
continued through the second quarter of 2021. Beginning in the
first quarter of 2020, management performs a review of each loan
within the portfolio to identify, and monitor on a going forward
basis, those borrowers that management believed to be possibly
impacted by the economy. Loans identified with increased risk are
aggregated by loan type. During the first quarter of 2020, this
analysis indicated a risk grade migration in a number of loan
categories that led to a heightened risk level in the loan
portfolio. The impact of the loans' risk grade migration was
applied to the allowance for loan loss calculation, which led to
the provision for loan losses of $3.3
million for the first quarter of 2020. The Company
determined that no provision was necessary for the third or fourth
quarters of 2020 after a similar analysis and review process.
Despite the stay-at-home orders, shut downs, higher than historical
unemployment levels and slow growth, the loan portfolio has
exhibited a trend over the last year of lower nonaccrual loans,
lower other real estate loans and very low charge-offs.
With respect to the PCI portfolio, no provision was recorded
during the first six months of 2021 or 2020 due to the stable
nature of the portfolio's performance. Additional discussion of
loan quality is presented below.
Noninterest Income
Linked Quarter Basis
Noninterest income was $1.5 million
for the second quarter of 2021, a $167,000 decrease compared with the first quarter
of 2021. Mortgage loan income decreased $85,000 on a linked quarter basis and was
$235,000 in the second quarter of
2021 compared with $320,000 in the
prior quarter. Gain (loss) on securities transactions, net were
losses totaling $28,000 in the second
quarter of 2021 compared with gains of $16,000 in the first quarter of 2021. Service
charges and fees of $651,000 in the
second quarter of 2021 declined $28,000 on a linked quarter basis. Other
noninterest income decreased $12,000
on a linked quarter basis and was $435,000 for the first quarter of 2021. Income on
bank owned life insurance was $168,000 in the second quarter of 2021 and
$166,000 in the first quarter of
2021.
Year-over-Year Second Quarter
Noninterest income of $1.5 million in
the second quarter of 2021 was a decrease of $155,000, or 9.6%, over the second quarter
of 2020. Gains (losses) on securities transactions decreased
$270,000 year over year as securities
losses of $28,000 were recognized in
the second quarter of 2021 compared with gains of $242,000 in the second quarter of 2020. Mortgage
loan income of $235,000 in the second
quarter of 2021 was a decrease of $138,000 year over year. Offsetting these
decreases to noninterest income was an increase of $139,000 in other noninterest income, which was
$435,000 in the second quarter of
2021. The increase was driven mainly by an increase of $199,000 in partnership investment income,
partially offset by decreases of $39,000 and $48,000
in swap fee and brokerage/commission fee income, respectively.
Additionally, there was an increase of $119,000 in service charges and fees, which were
$651,000.
Year-over-Year Six Months
Noninterest income was $3.1 million
for the first six months of 2021, an increase of $138,000, or 4.7%, over noninterest income of
$3.0 million for the first six months
of 2020. Other noninterest income was $882,000 for the first six months of 2021, an
increase of $290,000 over the same
period in 2020. The increase was the result of increases of
$312,000 and $141,000 in partnership income and insurance
commissions, respectively, net against a decrease of $120,000 in swap fee income. Service charges and
fees of $1.3 million for the first
six months of 2021 was an increase of $126,000 over the same period in 2020. These
increases were primarily offset by a decrease of $215,000 in gain (loss) on securities
transactions, net, which were losses of $12,000 for the first six months of 2021 compared
with gains of $203,000 for the first
six months of 2020. Mortgage loan income was $555,000 for the first six months of 2021, a
decrease of $39,000 over the same
period in 2020.
Noninterest Expenses
Linked Quarter Basis
Noninterest expenses totaled $9.2
million for the second quarter of 2021, as compared with
$8.8 million for the first quarter of
2021, an increase of $437,000, or
5.0%. Other operating expenses increased $752,000, from $1.6
million in the first quarter of 2021 to $2.3 million in the second quarter of 2021. The
increase includes $570,000 in merger
related expenses from legal, professional and director fees during
the second quarter of 2021. Also, there was an assessment of the
fair value of a low income housing tax credit investment that
resulted in a downward adjustment of $154,000. Salaries and employee expenses of
$5.4 million in the second quarter of
2021 was an increase of $144,000, or
2.8%, on a linked quarter basis. Data processing fees of
$741,000 in the second quarter of
2021 is an increase of $133,000 over
the linked quarter. Offsetting these increases to noninterest
expenses was a decrease of $442,000
in other real estate expenses, net, which were a credit of
$431,000 in the second quarter of
2021 and reflect gains on the disposition of other real estate
owned in the second quarter of 2021. FDIC assessment of
$108,000 in the second quarter of
2021 was a linked quarter decrease of $104,000, reflecting retroactive rate adjustments
by the FDIC. Occupancy expenses decreased by $75,000, from $836,000 in the first quarter of 2021 to
$761,000 in the second quarter of
2021.
Year-over-Year Second Quarter
Noninterest expenses were $9.2
million for the second quarter of 2021. This is an increase
of $1.3 million, or 16.8%, from
noninterest expenses of $7.9 million
for the second quarter of 2020. The largest component of the
increase was an increase in other noninterest expenses, which were
$2.3 million in the second quarter of
2021, an increase of $932,000 over
the same quarter one year earlier. The increase reflects
$570,000 of merger related expenses
noted above along with increases of $105,000 and $73,000 in legal and professional fees,
respectively. Salaries and employee benefits of $5.4 million in the second quarter of 2021
increased $739,000 over the second
quarter of 2020. The second quarter of 2020 was positively affected
by credits to internal costs for the volume of PPP loans that were
booked in the quarter. Data processing fees of $741,000 in the second quarter of 2021 reflected
an increase of $168,000 year over
year. Offsetting these increases was a year-over-year decline of
$427,000 in other real estate
expenses, net, which reflect gains on the disposition of other real
estate owned in the second quarter of 2021, in which they were a
credit of $431,000. Also offsetting
these increases year over year were a decrease of $48,000 in FDIC assessment, which was
$108,000 in the second quarter of
2021, a decrease of $28,000 in
equipment expenses, which was $317,000, and a decrease of $17,000 in occupancy expenses, which was
$761,000.
Year-over-Year Six Months
Noninterest expenses were $17.9
million for the six months ended June
30, 2021, an increase of $1.5
million, or 9.0%, year over year. Other operating
expenses were $3.9 million and
increased by $1.0 million in the
first six months of 2021 compared with the same period in 2020.
Part of the increase is attributed to $570,000 in merger related expenses, $154,000 for the low income housing tax credit
investment adjustment, $201,000
increase in legal fees, and $114,000
increase in professional fees incurred during the second quarter of
2021. Salaries and employee benefits of $10.6 million were an increase of $795,000 for the first six months of 2021 over
the same period in 2020. Another portion of the increase,
$559,000, was the result of the large
loan volume of PPP loans in the second quarter of 2020 that
generated ASC 310-20 credits to salaries and employee benefits.
Data processing fees, which were $1.3
million, increased by $184,000, or 15.8%, for the first six months of
2021 over the same period in 2020. Offsetting these increases was a
decrease of $422,000 in other real
estate expenses, net, as a result of gains recognized in the second
quarter of 2021 on the disposition of other real estate owned. Also
offsetting these increases was a decline of $112,000 in equipment expenses, which was
$605,000 for the first half of
2021.
The following table compares the Company's other operating
expenses included in noninterest expenses for the three months
ended June 30, 2021, March 31, 2021, December
31, 2020 and June 30,
2020.
OTHER OPERATING
EXPENSES
|
|
|
|
|
|
|
(Unaudited)
(Dollars in
thousands)
|
|
For the three
months ended
|
|
|
30-Jun-21
|
|
31-Mar-21
|
|
31-Dec-20
|
|
30-Jun-20
|
Bank franchise
tax
|
$
|
257
|
$
|
257
|
$
|
237
|
$
|
237
|
Stationery,
printing and supplies
|
|
152
|
|
168
|
|
138
|
|
185
|
Marketing
expense
|
|
140
|
|
89
|
|
89
|
|
111
|
Credit
expense
|
|
92
|
|
157
|
|
114
|
|
162
|
Outside vendor
fees
|
|
110
|
|
182
|
|
146
|
|
190
|
Other
expenses
|
|
1,593
|
|
739
|
|
726
|
|
527
|
Total other operating
expenses
|
$
|
2,344
|
$
|
1,592
|
$
|
1,450
|
$
|
1,412
|
Income Taxes
Income tax expense was $1.3
million for the second quarter of 2021, compared with income
tax expense of $1.7 million and
$1.0 million for the first quarter of
2021 and second quarter of 2020, respectively. The effective tax
rate for the second quarter of 2021 was 19.8% compared with 20.5%
for the first quarter of 2021 and 20.0% for the second quarter of
2020.
Income tax expense was $3.0
million for the first six months of 2021 compared with
$1.3 million for the same period in
2020. The effective tax rate was 20.2% for the first half of
2021 compared with an effective tax rate of 19.0% for the first
half of 2020.
FINANCIAL CONDITION
Total assets were $1.754 billion
at June 30, 2021 and increased
$109.4 million, or 6.7%, when
compared with December 31,
2020. Total loans, excluding PCI loans, were $1.192 billion at June 30,
2021, increasing $9.5 million,
or 0.8%, from year end 2020. Total PCI loans were $17.9 million at June 30,
2021 versus $24.0 million at
December 31, 2020.
At June 30, 2021, there were
$33.5 million in loans under COVID-19
related payment relief. PCI loans comprised $1.4 million of this total.
Loans, net of fees that the Bank originated under the PPP were
$52.0 million at June 30, 2021 compared with $67.7 million at March 31,
2021, $49.3 million at
December 31, 2020 and $83.5 million at June 30,
2020 during the peak of PPP activity. All of these balances
are included in commercial loans. As a result of the economic
conditions that existed during 2020 and the first half of 2021,
commercial loans, excluding PPP loans, declined by $3.7 million since December 31, 2020 and $7.0
million since June 30, 2020.
Commercial real estate loans, the largest category of loans at
$507.0 million, or 42.5% of gross
loans outstanding at June 30, 2021,
increased $32.1 million, or 6.8%,
since December 31, 2020. Residential
1 – 4 family loans declined during the first half of 2021 by
$14.3 million, or 7.2%, and ended the
period at $182.9 million, or 15.4% of
the portfolio.
The following table shows the composition of the Company's loan
portfolio, excluding PCI loans, at June 30,
2021, March 31, 2021,
December 31, 2020 and June 30, 2020.
LOANS (excluding
PCI loans)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
30-Jun-21
|
|
31-Mar-21
|
|
31-Dec-20
|
|
30-Jun-20
|
|
|
|
|
Amount
|
%
of Loans
|
|
|
Amount
|
% of
Loans
|
|
|
Amount
|
% of
Loans
|
|
|
Amount
|
% of
Loans
|
|
Mortgage loans on
real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4
family
|
$
|
182,929
|
15.35
|
%
|
$
|
184,286
|
15.32
|
%
|
$
|
197,228
|
16.68
|
%
|
$
|
205,787
|
17.66
|
%
|
|
Commercial
|
|
506,951
|
42.53
|
|
|
504,846
|
41.98
|
|
|
474,856
|
40.16
|
|
|
443,923
|
38.09
|
|
|
Construction and land
development
|
|
180,215
|
15.12
|
|
|
161,825
|
13.45
|
|
|
182,277
|
15.42
|
|
|
151,529
|
13.00
|
|
|
Second
mortgages
|
|
6,893
|
0.58
|
|
|
6,526
|
0.54
|
|
|
6,360
|
0.54
|
|
|
6,136
|
0.53
|
|
|
Multifamily
|
|
72,918
|
6.12
|
|
|
87,624
|
7.29
|
|
|
78,158
|
6.61
|
|
|
76,587
|
6.57
|
|
|
Agriculture
|
|
7,841
|
0.66
|
|
|
7,947
|
0.66
|
|
|
6,662
|
0.56
|
|
|
7,122
|
0.61
|
|
|
Total real estate
loans
|
|
957,747
|
80.36
|
|
|
953,054
|
79.24
|
|
|
945,541
|
79.97
|
|
|
891,084
|
76.46
|
|
Commercial
loans
|
|
224,437
|
18.83
|
|
|
239,782
|
19.94
|
|
|
225,386
|
19.06
|
|
|
262,955
|
22.57
|
|
Consumer installment
loans
|
|
8,452
|
0.71
|
|
|
8,595
|
0.71
|
|
|
9,996
|
0.85
|
|
|
10,257
|
0.88
|
|
All other
loans
|
|
1,205
|
0.10
|
|
|
1,292
|
0.11
|
|
|
1,439
|
0.12
|
|
|
1,014
|
0.09
|
|
|
Gross
loans
|
|
1,191,841
|
100.00
|
%
|
|
1,202,723
|
100.00
|
%
|
|
1,182,362
|
100.00
|
%
|
|
1,165,310
|
100.00
|
%
|
Allowance for loan
losses
|
|
(11,006)
|
|
|
|
(10,828)
|
|
|
|
(12,340)
|
|
|
|
(12,238)
|
|
|
Loans, net of
unearned income
|
$
|
1,180,835
|
|
|
$
|
1,191,895
|
|
|
$
|
1,170,022
|
|
|
$
|
1,153,072
|
|
|
The Company's securities portfolio, excluding restricted equity
securities, was $341.6 million at
June 30, 2021 and increased
$49.1 million during the first half
of 2021 and $90.5 million since
June 30, 2020. U.S. Treasury issues
decreased by $13.3 million during the
first half of 2021. U.S. Government agencies increased $21.9 million during the first half of 2021 and
were $47.8 million at June 30, 2021. State, county and municipal
securities, the largest investment category totaling $171.1 million at June 30,
2021, increased by $24.2
million during the first two quarters of 2021. Asset backed
securities, consisting of student loan pools 97% guaranteed by the
U.S. Government, increased $10.3
million during the first two quarters of 2021 and were
$47.8 million at June 30, 2021. Mortgage backed securities were
$38.0 million at June 30, 2021 and have grown by $5.8 million during 2021. Corporate securities
were $26.7 million at June 30, 2021.
The Company had cash and cash equivalents of $123.6 million at June 30,
2021 compared with $63.2
million at year end 2020. The majority of this category
growth, $56.9 million, occurred in
interest bearing bank balances, which were $102.0 million at June 30,
2021, as large amounts of liquidity have been funneled into
the banking system through the facilitation of PPP loans by the
banking industry and stimulus checks issued by the U.S. Treasury
under the Coronavirus Aid, Relief, and Economic Security Act (the
"CARES Act").
The following table shows the composition of the Company's
securities portfolio, excluding equity securities, restricted, at
June 30, 2021, December 31, 2020 and June
30, 2020.
SECURITIES
PORTFOLIO
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
(Dollars in
thousands)
|
|
30-Jun-21
|
|
31-Dec-20
|
|
30-Jun-20
|
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
Securities
Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
issue
|
$
|
10,166
|
|
10,229
|
$
|
23,500
|
$
|
23,499
|
$
|
21,750
|
$
|
21,749
|
U.S. Government
agencies
|
|
47,757
|
|
47,760
|
|
25,880
|
|
25,853
|
|
20,700
|
|
20,281
|
State, county, and
municipal
|
|
145,483
|
|
151,309
|
|
118,612
|
|
125,720
|
|
103,963
|
|
109,669
|
Mortgage backed
securities
|
|
36,888
|
|
38,024
|
|
30,434
|
|
32,189
|
|
30,391
|
|
32,243
|
Asset backed
securities
|
|
46,882
|
|
47,767
|
|
36,841
|
|
37,488
|
|
23,467
|
|
23,150
|
Corporate
|
|
26,150
|
|
26,670
|
|
26,136
|
|
26,598
|
|
19,306
|
|
19,775
|
Total securities
available for sale
|
$
|
313,326
|
|
321,759
|
$
|
261,403
|
$
|
271,347
|
$
|
219,577
|
$
|
226,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-Jun-21
|
|
31-Dec-20
|
|
30-Jun-20
|
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
Securities Held to
Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
State, county, and
municipal
|
$
|
19,824
|
|
20,698
|
$
|
21,176
|
$
|
22,257
|
$
|
24,169
|
$
|
25,282
|
Total securities held
to maturity
|
$
|
19,824
|
|
20,698
|
$
|
21,176
|
$
|
22,257
|
$
|
24,169
|
$
|
25,282
|
Interest bearing deposits at June 30,
2021 were $1.149 billion, an
increase of $49.3 million, or 4.5%,
from December 31, 2020. Interest
bearing checking accounts of $285.0
million grew by $45.4 million,
or 19.0%, during the first six months of 2021 and $89.6 million, or 45.8%, year over year. Money
market deposit accounts were $182.7
million at June 30, 2021 and
grew $28.2 million, or 18.3%, during
the first six months of 2021 and $34.7
million, or 23.4%, year over year. Savings accounts totaled
$142.1 million at June 30, 2021 and grew $17.7 million, or 14.3%, during the first half of
2021. Strong growth in these non-maturity categories for the year
has allowed the Bank to react to lower interest rates through
proactive repricing in certificates of deposit, the highest costing
deposit category. As a result, there has been a decline in
time deposits less than or equal to $250,000, which decreased by $27.0 million, or 6.0%, in the first half of 2021
and were $425.8 million at
June 30, 2021. Year over year, time
deposits less than or equal to $250,000 declined $66.9
million, or 13.6%. Time deposits over $250,000 declined $15.0
million in the first half of 2021 and were $113.4 million at June 30,
2021. Year over year, time deposits over $250,000 declined by $26.6
million, or 19.0%. Time deposit balances combined were 46.9%
of interest bearing deposits at June 30,
2021 and 36.2% of all deposit balances. This is a decline
from 52.9% of interest bearing balances and 41.6% of all deposit
balances at December 31, 2020. At
June 30, 2020, time deposit balances
were 58.3% of interest bearing deposits and 46.4% of all deposit
balances. The growth in interest bearing checking accounts, money
market accounts and savings accounts, as well as in noninterest
bearing checking accounts, was $132.2
million during the first half of 2021. A portion of this
growth was associated with the PPP loans originated during 2020 and
2021 and stimulus checks issued under the CARES Act, as well as
previously postponed business activity that resulted from the
COVID-19 stay-at-home orders.
The following table compares the mix of interest bearing
deposits at June 30, 2021,
March 31, 2021, December 31, 2020 and June
30, 2020.
INTEREST BEARING
DEPOSITS
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
30-Jun-21
|
|
31-Mar-21
|
|
31-Dec-20
|
|
30-Jun-20
|
Interest Bearing
Checking
|
$
|
285,044
|
$
|
261,536
|
$
|
239,628
|
$
|
195,441
|
MMDA
|
|
182,702
|
|
171,932
|
|
154,503
|
|
148,050
|
Savings
|
|
142,110
|
|
137,507
|
|
124,384
|
|
108,602
|
Time deposits less
than or equal to $250,000
|
|
425,837
|
|
422,372
|
|
452,885
|
|
492,749
|
Time deposits over
$250,000
|
|
113,423
|
|
112,038
|
|
128,400
|
|
140,027
|
Total interest
bearing deposits
|
|
1,149,116
|
$
|
1,105,385
|
$
|
1,099,800
|
$
|
1,084,869
|
FHLB borrowings were $67.5 million
at June 30, 2021 compared with
$57.8 million at December 31, 2020 and $68.2 million at June 30,
2020. The stable level of FHLB borrowings during 2020 and
into 2021 has been due to the FHLB swiftly responding to the
March 16, 2020 rate cut of 1.50% to
the discount rate by repricing advances downward to ensure low cost
liquidity for the banking system. As a result, the Bank has found
this level of borrowing to be a stable source of low cost funding.
The average rate paid on FHLB borrowings was 1.23% during the first
half of 2021. There were no Federal funds purchased at June 30, 2021 or December
31, 2020.
Shareholders' equity was $179.7
million at June 30, 2021, or
10.3% of total assets, compared with $169.7
million, or 10.3% of total assets, at December 31, 2020.
Asset Quality – excluding PCI loans
Nonperforming loans were $3.6
million at June 30, 2021, a
decrease of $950,000 from
December 31, 2020. Nonperforming loans declined $670,000 year over year. Total non-performing
assets totaled $3.9 million at
June 30, 2021 compared with
$8.9 million at December 31, 2020. Non-performing assets declined
$4.8 million, or 55.0%, year over
year. On April 7, 2021, the Company
sold an item included in other real estate owned at March 31, 2021 in the amount of $3.8 million, and this sale was the primary
reason for the decline in non-performing assets. There were net
recoveries of $66,000 in the first
half of 2021.
The allowance for loan losses equaled 309.6% of nonaccrual loans
at June 30, 2021 compared with 276.7%
at December 31, 2020. The ratio of
nonperforming assets to loans and other real estate owned (OREO)
was 0.33% at June 30, 2021 compared
with 0.75% at December 31, 2020.
The allowance for loan losses to total loans was 0.92% at
June 30, 2021 compared with 1.04% at
December 31, 2020 and 1.05% at
June 30, 2020. The volume of PPP
loans originated since the second quarter of 2020 impacted the
ratio. PPP loans, net of fees, were $52.0 million at June 30,
2021 and $49.3 million at
December 31, 2020. At June 30, 2021, when excluding PPP loans, the
allowance for loan losses to total loans would have been 0.97%.
These loans are fully guaranteed by the SBA in accordance with the
CARES Act; therefore, no allowance is required. The Company
monitors and adjusts the allowance for loan losses based on loans
requiring a reserve.
The following table reconciles the activity in the Company's
allowance for loan losses, by quarter, for the past five
quarters.
ALLOWANCE FOR LOAN
LOSSES
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
2021
|
|
|
2020
|
|
|
Second
|
|
First
|
|
|
Fourth
|
|
Third
|
|
Second
|
|
|
Quarter
|
|
Quarter
|
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
Allowance for loan
losses:
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of
period
|
$
|
10,828
|
$
|
12,340
|
|
$
|
12,328
|
$
|
12,238
|
$
|
11,819
|
Provision for loan
losses
|
|
-
|
|
(1,400)
|
|
|
-
|
|
-
|
|
900
|
Net (charge-offs)
recoveries
|
|
178
|
|
(112)
|
|
|
12
|
|
90
|
|
(481)
|
End of
period
|
$
|
11,006
|
$
|
10,828
|
|
$
|
12,340
|
$
|
12,328
|
$
|
12,238
|
The following table sets forth selected asset quality data,
excluding PCI loans, and ratios for the dates indicated.
ASSET QUALITY
(excluding PCI loans)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
30-Jun-21
|
|
|
31-Mar-21
|
|
|
31-Dec-20
|
|
30-Sep-20
|
|
30-Jun-20
|
|
Nonaccrual
loans
|
$
|
3,555
|
|
$
|
3,496
|
|
$
|
4,460
|
$
|
4,214
|
$
|
4,225
|
|
Loans past due 90
days and accruing interest
|
|
-
|
|
|
33
|
|
|
45
|
|
-
|
|
-
|
|
Total nonperforming
loans
|
|
3,555
|
|
|
3,529
|
|
|
4,505
|
|
4,214
|
|
4,225
|
|
Other real estate
owned
|
|
364
|
|
|
4,313
|
|
|
4,361
|
|
4,416
|
|
4,486
|
|
Total nonperforming
assets
|
$
|
3,919
|
|
$
|
7,842
|
|
$
|
8,866
|
$
|
8,630
|
$
|
8,711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses to loans
|
|
0.92
|
%
|
|
0.90
|
%
|
|
1.04
|
%
|
1.05
|
%
|
1.05
|
%
|
Allowance for loan
losses to nonaccrual loans
|
|
309.59
|
|
|
309.73
|
|
|
276.68
|
|
292.55
|
|
289.66
|
|
Nonperforming assets
to loans and other real estate
|
|
0.33
|
|
|
0.65
|
|
|
0.75
|
|
0.73
|
|
0.74
|
|
Net
charge-offs/(recoveries) to average loans
|
|
(0.06)
|
%
|
|
0.04
|
%
|
|
0.03
|
%
|
0.04
|
%
|
0.07
|
%
|
A further breakout of nonaccrual loans, excluding PCI loans, at
June 30, 2021, March 31, 2021, December
31, 2020, and June 30, 2020 is
below.
NONACCRUAL LOANS
(excluding PCI loans)
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-Jun-21
|
|
31-Mar-21
|
|
31-Dec-20
|
|
30-Jun-20
|
Mortgage loans on
real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4
family
|
|
$
|
1,316
|
|
$
|
1,422
|
|
$
|
1,357
|
|
$
|
1,697
|
|
Commercial
|
|
|
953
|
|
|
711
|
|
|
730
|
|
|
636
|
|
Construction and land
development
|
|
|
2
|
|
|
5
|
|
|
44
|
|
|
1,122
|
|
Agriculture
|
|
|
-
|
|
|
45
|
|
|
45
|
|
|
51
|
|
Total real estate
loans
|
|
$
|
2,271
|
|
$
|
2,183
|
|
$
|
2,176
|
|
$
|
3,506
|
Commercial
loans
|
|
|
1,284
|
|
|
1,301
|
|
|
2,264
|
|
|
707
|
Consumer installment
loans
|
|
|
-
|
|
$
|
12
|
|
|
20
|
|
|
12
|
|
Gross
loans
|
|
$
|
3,555
|
|
$
|
3,496
|
|
$
|
4,460
|
|
$
|
4,225
|
Capital Requirements
The Bank's ratio of total risk-based capital was 14.1% at
June 30, 2021 compared with 13.6% at
December 31, 2020. The tier 1
risk-based capital ratio was 13.3% at June
30, 2021 and 12.7% at December 31,
2020. The Bank's tier 1 leverage ratio was 10.3% at
June 30, 2021 and 10.1% at
December 31, 2020. All
capital ratios exceed regulatory minimums to be considered well
capitalized. BASEL III
introduced the common equity tier 1 capital ratio, which was 13.3%
at June 30, 2021 and 12.7% at
December 31, 2020.
Earnings Conference Call and Webcast
The Company will host a conference call for interested parties
on Friday, July 30, 2021, at 10:00
a.m. Eastern Time to discuss the financial results for the
second quarter of 2021. The public is invited to listen to this
conference call by dialing 866-374-8379 at least five minutes
prior to the call. Interested parties may also listen to this
conference call through the internet by accessing the "Corporate
Overview – Corporate Profile" page of the Company's internet site
at www.cbtrustcorp.com.
A replay of the conference call will be available from 12:00
noon Eastern Time on July 30, 2021, until 9:00
a.m. Eastern Time on August 20,
2021. The replay will be available by dialing 877-344-7529
and entering access code 10158479 or through the internet by
accessing the "Corporate Overview – Corporate Profile" page of the
Company's internet site at www.cbtrustcorp.com.
About Community Bankers Trust Corporation and Essex
Bank
Community Bankers Trust Corporation is the holding company for
Essex Bank, a Virginia state bank
with 24 full-service offices, 18 of which are in Virginia and six of which are in
Maryland. The Bank also operates two loan production
offices.
Additional information on the Bank is available on the Bank's
website at www.essexbank.com. For information on Community
Bankers Trust Corporation, please visit its website at
www.cbtrustcorp.com.
Forward-Looking Statements
This release contains forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995,
that are subject to risks and uncertainties. These forward-looking
statements include, without limitation, statements with respect to
the Company's operations, performance, future strategy and goals.
Actual results may differ materially from those included in the
forward-looking statements due to a number of factors, including,
without limitation, the effects of and changes in the following:
the quality or composition of the Company's loan or investment
portfolios, including collateral values and the repayment abilities
of borrowers and issuers; assumptions that underlie the Company's
allowance for loan losses; general economic and market conditions,
either nationally or in the Company's market areas; unusual and
infrequently occurring events, such as weather-related disasters,
terrorist acts or public health events (such as the current
COVID-19 pandemic), and of governmental and societal responses to
them; the pending merger with United, including its closing on the
expected terms and schedule, the costs associated with completing
it and integrating the businesses, and the impact on business
operations until and through its closing; the interest rate
environment; competitive pressures among banks and financial
institutions or from companies outside the banking industry; real
estate values; the demand for deposit, loan and investment products
and other financial services; the demand, development and
acceptance of new products and services; the performance of vendors
or other parties with which the Company does business; time and
costs associated with de novo branching, acquisitions, dispositions
and similar transactions; the realization of gains and expense
savings from acquisitions, dispositions and similar transactions;
consumer profiles and spending and savings habits; levels of fraud
in the banking industry; the level of attempted cyber-attacks in
the banking industry; the securities and credit markets; costs
associated with the integration of banking and other internal
operations; the soundness of other financial institutions with
which the Company does business; inflation; technology; and
legislative and regulatory requirements. Many of these
factors and additional risks and uncertainties are described in the
Company's Annual Report on Form 10-K for the year ended
December 31, 2020 and other reports
filed from time to time by the Company with the Securities and
Exchange Commission. This press release speaks only as of its date,
and the Company disclaims any duty to update the information in
it.
COMMUNITY BANKERS
TRUST CORPORATION
|
|
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
UNAUDITED
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
30-Jun-21
|
|
31-Mar-21
|
|
31-Dec-20
|
|
30-Jun-20
|
Assets
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$
|
21,414
|
$
|
20,836
|
$
|
17,845
|
$
|
20,530
|
Interest bearing bank
deposits
|
|
101,996
|
|
74,337
|
|
45,118
|
|
64,796
|
Federal funds
sold
|
|
234
|
|
234
|
|
222
|
|
-
|
Total cash and
cash equivalents
|
|
123,644
|
|
95,407
|
|
63,185
|
|
85,326
|
|
|
|
|
|
|
|
|
|
Securities available
for sale, at fair value
|
|
321,759
|
|
273,126
|
|
271,347
|
|
226,867
|
Securities held to
maturity, at cost
|
|
19,824
|
|
20,271
|
|
21,176
|
|
24,169
|
Equity securities,
restricted, at cost
|
|
8,049
|
|
8,049
|
|
8,436
|
|
8,875
|
Total
securities
|
|
349,632
|
|
301,446
|
|
300,959
|
|
259,911
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
-
|
|
-
|
|
-
|
|
396
|
|
|
|
|
|
|
|
|
|
Loans
|
|
1,191,841
|
|
1,202,723
|
|
1,182,362
|
|
1,165,310
|
Purchased credit
impaired (PCI) loans
|
|
17,943
|
|
22,465
|
|
24,040
|
|
29,507
|
Allowance for loan
losses
|
|
(11,006)
|
|
(10,828)
|
|
(12,340)
|
|
(12,238)
|
Allowance for loan
losses – PCI loans
|
|
(156)
|
|
(156)
|
|
(156)
|
|
(156)
|
Net
loans
|
|
1,198,622
|
|
1,214,204
|
|
1,193,906
|
|
1,182,423
|
|
|
|
|
|
|
|
|
|
Bank premises and
equipment, net
|
|
27,297
|
|
27,582
|
|
27,897
|
|
28,713
|
Bank premises and
equipment held for sale
|
|
1,507
|
|
1,507
|
|
1,507
|
|
1,589
|
Right-of-use lease
assets
|
|
5,053
|
|
5,292
|
|
5,530
|
|
5,999
|
Other real estate
owned
|
|
364
|
|
4,313
|
|
4,361
|
|
4,486
|
Bank owned life
insurance
|
|
30,363
|
|
30,195
|
|
30,029
|
|
29,687
|
Other
assets
|
|
17,731
|
|
18,862
|
|
17,435
|
|
16,474
|
Total
assets
|
$
|
1,754,213
|
$
|
1,698,808
|
$
|
1,644,809
|
$
|
1,615,004
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Noninterest
bearing
|
$
|
339,712
|
$
|
333,910
|
$
|
298,901
|
$
|
278,780
|
Interest
bearing
|
|
1,149,116
|
|
1,105,385
|
|
1,099,800
|
|
1,084,869
|
Total
deposits
|
|
1,488,828
|
|
1,439,295
|
|
1,398,701
|
|
1,363,649
|
|
|
|
|
|
|
|
|
|
Federal funds
purchased
|
|
-
|
|
-
|
|
-
|
|
3,268
|
Federal Home Loan
Bank borrowings
|
|
67,500
|
|
67,667
|
|
57,833
|
|
68,167
|
Trust preferred
capital notes
|
|
4,124
|
|
4,124
|
|
4,124
|
|
4,124
|
Lease
liabilities
|
|
5,297
|
|
5,545
|
|
5,787
|
|
6,264
|
Other
liabilities
|
|
8,733
|
|
9,701
|
|
8,710
|
|
8,751
|
Total
liabilities
|
|
1,574,482
|
|
1,526,332
|
|
1,475,155
|
|
1,454,223
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
Common stock
(200,000,000 shares authorized $0.01 par value; 22,451,463,
22,219,926, and 22,200,929 shares issued and outstanding,
respectively)
|
|
225
|
|
222
|
|
222
|
|
223
|
Additional paid in
capital
|
|
151,522
|
|
150,039
|
|
149,822
|
|
150,428
|
Retained
earnings
|
|
22,811
|
|
18,729
|
|
13,419
|
|
5,900
|
Accumulated other
comprehensive income
|
|
5,173
|
|
3,486
|
|
6,191
|
|
4,230
|
Total
shareholders' equity
|
|
179,731
|
|
172,476
|
|
169,654
|
|
160,781
|
Total liabilities
and shareholders' equity
|
$
|
1,754,213
|
$
|
1,698,808
|
$
|
1,644,809
|
$
|
1,615,004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMUNITY BANKERS
TRUST CORPORATION
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
YTD
|
|
Three months
ended
|
|
YTD
|
|
Three months
ended
|
|
2021
|
|
30-Jun-21
|
31-Mar-21
|
|
2020
|
|
30-Jun-20
|
31-Mar-20
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
26,346
|
|
$
|
13,196
|
$
|
13,150
|
|
$
|
26,098
|
|
$
|
13,012
|
$
|
13,086
|
Interest and fees on
PCI loans
|
|
1,640
|
|
|
784
|
|
856
|
|
|
2,159
|
|
|
1,062
|
|
1,097
|
Interest on deposits
in other banks
|
|
114
|
|
|
54
|
|
60
|
|
|
110
|
|
|
41
|
|
69
|
Interest and
dividends on securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
3,162
|
|
|
1,695
|
|
1,467
|
|
|
2,638
|
|
|
1,287
|
|
1,351
|
Nontaxable
|
|
662
|
|
|
335
|
|
327
|
|
|
692
|
|
|
349
|
|
343
|
Total interest and
dividend income
|
|
31,924
|
|
|
16,064
|
|
15,860
|
|
|
31,697
|
|
|
15,751
|
|
15,946
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
2,912
|
|
|
1,347
|
|
1,565
|
|
|
6,601
|
|
|
3,182
|
|
3,419
|
Interest on borrowed
funds
|
|
437
|
|
|
220
|
|
217
|
|
|
498
|
|
|
209
|
|
289
|
Total interest
expense
|
|
3,349
|
|
|
1,567
|
|
1,782
|
|
|
7,099
|
|
|
3,391
|
|
3,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
28,575
|
|
|
14,497
|
|
14,078
|
|
|
24,598
|
|
|
12,360
|
|
12,238
|
(Recovery of)
provision for loan losses
|
|
(1,400)
|
|
|
-
|
|
(1,400)
|
|
|
4,200
|
|
|
900
|
|
3,300
|
Net interest
income after (recovery of )
provision for loan
losses
|
|
29,975
|
|
|
14,497
|
|
15,478
|
|
|
20,398
|
|
|
11,460
|
|
8,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and
fees
|
|
1,330
|
|
|
651
|
|
679
|
|
|
1,204
|
|
|
532
|
|
672
|
Gain (loss) on
securities transactions, net
|
|
(12)
|
|
|
(28)
|
|
16
|
|
|
203
|
|
|
242
|
|
(39)
|
Gain on sale of
loans
|
|
-
|
|
|
-
|
|
-
|
|
|
11
|
|
|
-
|
|
11
|
Income on bank owned
life insurance
|
|
334
|
|
|
168
|
|
166
|
|
|
347
|
|
|
173
|
|
174
|
Mortgage loan
income
|
|
555
|
|
|
235
|
|
320
|
|
|
594
|
|
|
373
|
|
221
|
Other
|
|
882
|
|
|
435
|
|
447
|
|
|
592
|
|
|
296
|
|
296
|
Total noninterest
income
|
|
3,089
|
|
|
1,461
|
|
1,628
|
|
|
2,951
|
|
|
1,616
|
|
1,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
10,560
|
|
|
5,352
|
|
5,208
|
|
|
9,765
|
|
|
4,613
|
|
5,152
|
Occupancy
expenses
|
|
1,597
|
|
|
761
|
|
836
|
|
|
1,605
|
|
|
778
|
|
827
|
Equipment
expenses
|
|
605
|
|
|
317
|
|
288
|
|
|
717
|
|
|
345
|
|
372
|
FDIC
assessment
|
|
320
|
|
|
108
|
|
212
|
|
|
281
|
|
|
156
|
|
125
|
Data processing
fees
|
|
1,349
|
|
|
741
|
|
608
|
|
|
1,165
|
|
|
573
|
|
592
|
Other real estate
expenses, net
|
|
(420)
|
|
|
(431)
|
|
11
|
|
|
2
|
|
|
(4)
|
|
6
|
Other operating
expenses
|
|
3,936
|
|
|
2,344
|
|
1,592
|
|
|
2,932
|
|
|
1,412
|
|
1,520
|
Total noninterest
expense
|
|
17,947
|
|
|
9,192
|
|
8,755
|
|
|
16,467
|
|
|
7,873
|
|
8,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
15,117
|
|
|
6,766
|
|
8,351
|
|
|
6,882
|
|
|
5,203
|
|
1,679
|
Income tax
expense
|
|
3,048
|
|
|
1,340
|
|
1,708
|
|
|
1,307
|
|
|
1,043
|
|
264
|
Net
income
|
$
|
12,069
|
|
$
|
5,426
|
$
|
6,643
|
|
$
|
5,575
|
|
$
|
4,160
|
$
|
1,415
|
COMMUNITY BANKERS
TRUST CORPORATION
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
Three months
ended
|
|
30-Jun-21
|
|
31-Mar-21
|
|
31-Dec-20
|
|
30-Sep-20
|
|
30-Jun-20
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
13,196
|
$
|
13,150
|
$
|
13,622
|
$
|
12,760
|
$
|
13,012
|
Interest and fees on
PCI loans
|
|
784
|
|
856
|
|
932
|
|
962
|
|
1,062
|
Interest on deposits
in other banks
|
|
54
|
|
60
|
|
107
|
|
121
|
|
41
|
Interest and
dividends on securities
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
1,695
|
|
1,467
|
|
1,373
|
|
1,362
|
|
1,287
|
Nontaxable
|
|
335
|
|
327
|
|
337
|
|
344
|
|
349
|
Total interest and
dividend income
|
|
16,064
|
|
15,860
|
|
16,371
|
|
15,549
|
|
15,751
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
1,347
|
|
1,565
|
|
2,151
|
|
2,614
|
|
3,182
|
Interest on borrowed
funds
|
|
220
|
|
217
|
|
221
|
|
222
|
|
209
|
Total interest
expense
|
|
1,567
|
|
1,782
|
|
2,372
|
|
2,836
|
|
3,391
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
14,497
|
|
14,078
|
|
13,999
|
|
12,713
|
|
12,360
|
(Recovery of)
provision for loan losses
|
|
-
|
|
(1,400)
|
|
-
|
|
-
|
|
900
|
Net interest
income after (recovery of ) provision for loan
losses
|
|
14,497
|
|
15,478
|
|
13,999
|
|
12,713
|
|
11,460
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
Service charges and
fees
|
|
651
|
|
679
|
|
777
|
|
613
|
|
532
|
Gain (loss) on
securities transactions, net
|
|
(28)
|
|
16
|
|
3
|
|
78
|
|
242
|
Gain on sale of
loans
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Income on bank owned
life insurance
|
|
168
|
|
166
|
|
171
|
|
171
|
|
173
|
Mortgage loan
income
|
|
235
|
|
320
|
|
294
|
|
228
|
|
373
|
Other
|
|
435
|
|
447
|
|
280
|
|
382
|
|
296
|
Total noninterest
income
|
|
1,461
|
|
1,628
|
|
1,525
|
|
1,472
|
|
1,616
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
5,352
|
|
5,208
|
|
5,332
|
|
5,041
|
|
4,613
|
Occupancy
expenses
|
|
761
|
|
836
|
|
758
|
|
815
|
|
778
|
Equipment
expenses
|
|
317
|
|
288
|
|
320
|
|
330
|
|
345
|
FDIC
assessment
|
|
108
|
|
212
|
|
184
|
|
174
|
|
156
|
Data processing
fees
|
|
741
|
|
608
|
|
632
|
|
656
|
|
573
|
Other real estate
expenses, net
|
|
(431)
|
|
11
|
|
63
|
|
87
|
|
(4)
|
Other operating
expenses
|
|
2,344
|
|
1,592
|
|
1,450
|
|
1,423
|
|
1,412
|
Total noninterest
expense
|
|
9,192
|
|
8,755
|
|
8,739
|
|
8,526
|
|
7,873
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
6,766
|
|
8,351
|
|
6,785
|
|
5,659
|
|
5,203
|
Income tax
expense
|
|
1,340
|
|
1,708
|
|
1,328
|
|
1,143
|
|
1,043
|
Net
income
|
$
|
5,426
|
$
|
6,643
|
$
|
5,457
|
$
|
4,516
|
$
|
4,160
|
COMMUNITY BANKERS
TRUST CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
MARGIN ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2021
|
|
|
Three months ended
March 31, 2021
|
|
|
|
Average
Balance
Sheet
|
|
Interest
Income /
Expense
|
|
Average
Rates
Earned /
Paid
|
|
|
Average
Balance Sheet
|
|
Interest
Income /
Expense
|
|
Average
Rates
Earned /
Paid
|
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
$
|
1,204,691
|
|
$
|
13,196
|
|
4.39
|
%
|
|
$
|
1,191,395
|
|
$
|
13,150
|
|
4.48
|
%
|
|
PCI loans,
including fees
|
|
19,827
|
|
|
784
|
|
15.63
|
|
|
|
23,226
|
|
|
856
|
|
14.75
|
|
|
Total
loans
|
|
1,224,518
|
|
|
13,980
|
|
4.58
|
|
|
|
1,214,621
|
|
|
14,006
|
|
4.68
|
|
|
Interest bearing bank
balances
|
|
86,130
|
|
|
54
|
|
0.25
|
|
|
|
70,192
|
|
|
60
|
|
0.34
|
|
|
Federal funds
sold
|
|
208
|
|
|
-
|
|
0.08
|
|
|
|
198
|
|
|
-
|
|
0.07
|
|
|
Securities
(taxable)
|
|
272,556
|
|
|
1,695
|
|
2.49
|
|
|
|
234,938
|
|
|
1,467
|
|
2.50
|
|
|
Securities (tax
exempt)(1)
|
|
50,260
|
|
|
424
|
|
3.37
|
|
|
|
49,158
|
|
|
414
|
|
3.37
|
|
|
Total earning
assets
|
|
1,633,672
|
|
|
16,153
|
|
3.97
|
|
|
|
1,569,107
|
|
|
15,947
|
|
4.12
|
|
|
Allowance for loan
losses
|
|
(11,037)
|
|
|
|
|
|
|
|
|
(12,459)
|
|
|
|
|
|
|
|
Non-earning
assets
|
|
104,716
|
|
|
|
|
|
|
|
|
105,946
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,727,351
|
|
|
|
|
|
|
|
$
|
1,662,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - interest
bearing
|
$
|
268,525
|
|
$
|
119
|
|
0.18
|
|
|
$
|
250,888
|
|
$
|
138
|
|
0.22
|
|
|
Savings and money
market
|
|
323,137
|
|
|
205
|
|
0.25
|
|
|
|
291,779
|
|
|
183
|
|
0.25
|
|
|
Time
deposits
|
|
535,455
|
|
|
1,023
|
|
0.77
|
|
|
|
550,297
|
|
|
1,244
|
|
0.92
|
|
|
Total interest
bearing deposits
|
|
1,127,117
|
|
|
1,347
|
|
0.48
|
|
|
|
1,092,964
|
|
|
1,565
|
|
0.58
|
|
|
Short-term
borrowings
|
|
134
|
|
|
-
|
|
0.20
|
|
|
|
439
|
|
|
-
|
|
0.20
|
|
|
FHLB and other
borrowings
|
|
71,785
|
|
|
220
|
|
1.22
|
|
|
|
69,174
|
|
|
217
|
|
1.26
|
|
|
Total interest
bearing liabilities
|
|
1,199,036
|
|
|
1,567
|
|
0.52
|
|
|
|
1,162,577
|
|
|
1,782
|
|
0.62
|
|
|
Noninterest bearing
deposits
|
|
337,907
|
|
|
|
|
|
|
|
|
314,979
|
|
|
|
|
|
|
|
Other
liabilities
|
|
13,921
|
|
|
|
|
|
|
|
|
13,208
|
|
|
|
|
|
|
|
Total
liabilities
|
|
1,550,864
|
|
|
|
|
|
|
|
|
1,490,764
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
176,487
|
|
|
|
|
|
|
|
|
171,830
|
|
|
|
|
|
|
|
Total liabilities
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
$
|
1,727,351
|
|
|
|
|
|
|
|
$
|
1,662,594
|
|
|
|
|
|
|
|
Net interest
earnings
|
|
|
|
$
|
14,586
|
|
|
|
|
|
|
|
$
|
14,165
|
|
|
|
|
Interest
spread
|
|
|
|
|
|
|
3.45
|
%
|
|
|
|
|
|
|
|
3.50
|
%
|
|
Net interest
margin
|
|
|
|
|
|
|
3.58
|
%
|
|
|
|
|
|
|
|
3.66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
|
|
|
89
|
|
|
|
|
|
|
|
|
87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Income and
yields are reported on a tax-equivalent basis assuming a federal
tax rate of 21%
|
COMMUNITY BANKERS
TRUST CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
MARGIN ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2021
|
|
|
Three months ended
June 30, 2020
|
|
|
|
Average
Balance
Sheet
|
|
Interest
Income
/ Expense
|
|
Average
Rates
Earned /
Paid
|
|
|
Average
Balance Sheet
|
|
Interest
Income /
Expense
|
|
Average
Rates
Earned /
Paid
|
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
$
|
1,204,691
|
|
$
|
13,196
|
|
4.39
|
%
|
|
$
|
1,145,956
|
|
$
|
13,012
|
|
4.55
|
%
|
|
PCI loans,
including fees
|
|
19,827
|
|
|
784
|
|
15.63
|
|
|
|
29,978
|
|
|
1,062
|
|
14.01
|
|
|
Total
loans
|
|
1,224,518
|
|
|
13,980
|
|
4.58
|
|
|
|
1,175,934
|
|
|
14,074
|
|
4.80
|
|
|
Interest bearing bank
balances
|
|
86,130
|
|
|
54
|
|
0.25
|
|
|
|
52,551
|
|
|
41
|
|
0.31
|
|
|
Federal funds
sold
|
|
208
|
|
|
-
|
|
0.08
|
|
|
|
210
|
|
|
—
|
|
0.07
|
|
|
Securities
(taxable)
|
|
272,556
|
|
|
1,695
|
|
2.49
|
|
|
|
189,378
|
|
|
1,287
|
|
2.72
|
|
|
Securities (tax
exempt)(1)
|
|
50,260
|
|
|
424
|
|
3.37
|
|
|
|
50,629
|
|
|
442
|
|
3.49
|
|
|
Total earning
assets
|
|
1,633,672
|
|
|
16,153
|
|
3.97
|
|
|
|
1,468,702
|
|
|
15,844
|
|
4.33
|
|
|
Allowance for loan
losses
|
|
(11,037)
|
|
|
|
|
|
|
|
|
(12,007)
|
|
|
|
|
|
|
|
Non-earning
assets
|
|
104,716
|
|
|
|
|
|
|
|
|
109,847
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,727,351
|
|
|
|
|
|
|
|
$
|
1,566,542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - interest
bearing
|
$
|
268,525
|
|
$
|
119
|
|
0.18
|
|
|
$
|
181,789
|
|
|
98
|
|
0.22
|
|
|
Savings and money
market
|
|
323,137
|
|
|
205
|
|
0.25
|
|
|
|
241,646
|
|
|
228
|
|
0.38
|
|
|
Time
deposits
|
|
535,455
|
|
|
1,023
|
|
0.77
|
|
|
|
643,465
|
|
|
2,856
|
|
1.78
|
|
|
Total interest
bearing deposits
|
|
1,127,117
|
|
|
1,347
|
|
0.48
|
|
|
|
1,066,900
|
|
|
3,182
|
|
1.20
|
|
|
Short-term
borrowings
|
|
134
|
|
|
-
|
|
0.20
|
|
|
|
323
|
|
|
—
|
|
0.20
|
|
|
FHLB and other
borrowings
|
|
71,785
|
|
|
220
|
|
1.22
|
|
|
|
71,685
|
|
|
209
|
|
1.15
|
|
|
Total interest
bearing liabilities
|
|
1,199,036
|
|
|
1,567
|
|
0.52
|
|
|
|
1,138,908
|
|
|
3,391
|
|
1.19
|
|
|
Noninterest bearing
deposits
|
|
337,907
|
|
|
|
|
|
|
|
|
254,216
|
|
|
|
|
|
|
|
Other
liabilities
|
|
13,921
|
|
|
|
|
|
|
|
|
14,396
|
|
|
|
|
|
|
|
Total
liabilities
|
|
1,550,864
|
|
|
|
|
|
|
|
|
1,407,520
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
176,487
|
|
|
|
|
|
|
|
|
159,022
|
|
|
|
|
|
|
|
Total liabilities
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
$
|
1,727,351
|
|
|
|
|
|
|
|
$
|
1,566,542
|
|
|
|
|
|
|
|
Net interest
earnings
|
|
|
|
$
|
14,586
|
|
|
|
|
|
|
|
$
|
12,453
|
|
|
|
|
Interest
spread
|
|
|
|
|
|
|
3.45
|
%
|
|
|
|
|
|
|
|
3.14
|
%
|
|
Net interest
margin
|
|
|
|
|
|
|
3.58
|
%
|
|
|
|
|
|
|
|
3.40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
|
|
|
89
|
|
|
|
|
|
|
|
|
93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Income and
yields are reported on a tax-equivalent basis assuming a federal
tax rate of 21%
|
|
|
|
|
|
|
|
|
COMMUNITY BANKERS
TRUST CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
MARGIN ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2021
|
|
|
Six months ended
June 30, 2020
|
|
|
|
Average
Balance
Sheet
|
|
Interest
Income /
Expense
|
|
Average
Rates
Earned /
Paid
|
|
|
Average
Balance Sheet
|
|
Interest
Income /
Expense
|
|
Average
Rates
Earned /
Paid
|
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
$
|
1,198,080
|
|
$
|
26,346
|
|
4.43
|
%
|
|
$
|
1,105,612
|
|
$
|
26,098
|
|
4.73
|
%
|
|
PCI loans,
including fees
|
|
21,517
|
|
|
1,640
|
|
15.16
|
|
|
|
30,644
|
|
|
2,159
|
|
13.94
|
|
|
Total
loans
|
|
1,219,597
|
|
|
27,986
|
|
4.63
|
|
|
|
1,136,256
|
|
|
28,257
|
|
4.99
|
|
|
Interest bearing bank
balances
|
|
78,204
|
|
|
114
|
|
0.29
|
|
|
|
34,503
|
|
|
110
|
|
0.64
|
|
|
Federal funds
sold
|
|
203
|
|
|
0
|
|
0.07
|
|
|
|
176
|
|
|
0
|
|
0.47
|
|
|
Securities
(taxable)
|
|
253,851
|
|
|
3,162
|
|
2.49
|
|
|
|
185,859
|
|
|
2,638
|
|
2.84
|
|
|
Securities (tax
exempt)(1)
|
|
49,712
|
|
|
838
|
|
3.37
|
|
|
|
50,010
|
|
|
876
|
|
3.51
|
|
|
Total earning
assets
|
|
1,601,567
|
|
|
32,100
|
|
4.04
|
|
|
|
1,406,804
|
|
|
31,881
|
|
4.54
|
|
|
Allowance for loan
losses
|
|
(11,744)
|
|
|
|
|
|
|
|
|
(10,314)
|
|
|
|
|
|
|
|
Non-earning
assets
|
|
105,329
|
|
|
|
|
|
|
|
|
107,694
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,695,152
|
|
|
|
|
|
|
|
$
|
1,504,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - interest
bearing
|
$
|
259,755
|
|
$
|
257
|
|
0.20
|
|
|
$
|
176,034
|
|
$
|
192
|
|
0.22
|
|
|
Savings and money
market
|
|
307,545
|
|
|
389
|
|
0.25
|
|
|
|
230,654
|
|
|
508
|
|
0.44
|
|
|
Time
deposits
|
|
542,835
|
|
|
2,266
|
|
0.84
|
|
|
|
638,064
|
|
|
5,901
|
|
1.85
|
|
|
Total
interest bearing deposits
|
|
1,110,135
|
|
|
2,912
|
|
0.53
|
|
|
|
1,044,752
|
|
|
6,601
|
|
1.27
|
|
|
Short-term
borrowings
|
|
286
|
|
|
0
|
|
0.20
|
|
|
|
2,254
|
|
|
23
|
|
2.06
|
|
|
FHLB and other
borrowings
|
|
70,487
|
|
|
437
|
|
1.23
|
|
|
|
69,240
|
|
|
475
|
|
1.36
|
|
|
Total interest
bearing liabilities
|
|
1,180,908
|
|
|
3,349
|
|
0.57
|
|
|
|
1,116,246
|
|
|
7,099
|
|
1.28
|
|
|
Noninterest bearing
deposits
|
|
326,506
|
|
|
|
|
|
|
|
|
215,044
|
|
|
|
|
|
|
|
Other
liabilities
|
|
13,567
|
|
|
|
|
|
|
|
|
14,290
|
|
|
|
|
|
|
|
Total
liabilities
|
|
1,520,981
|
|
|
|
|
|
|
|
|
1,345,580
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
174,171
|
|
|
|
|
|
|
|
|
158,604
|
|
|
|
|
|
|
|
Total liabilities
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders' equity
|
$
|
1,695,152
|
|
|
|
|
|
|
|
$
|
1,504,184
|
|
|
|
|
|
|
|
Net interest
earnings
|
|
|
|
$
|
28,751
|
|
|
|
|
|
|
|
$
|
24,782
|
|
|
|
|
Interest
spread
|
|
|
|
|
|
|
3.47
|
%
|
|
|
|
|
|
|
|
3.26
|
%
|
|
Net interest
margin
|
|
|
|
|
|
|
3.62
|
%
|
|
|
|
|
|
|
|
3.53
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
|
|
|
176
|
|
|
|
|
|
|
|
|
184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Income and
yields are reported on a tax-equivalent basis assuming a federal
tax rate of 21%.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/community-bankers-trust-corporation-reports-results-for-second-quarter-2021-301345022.html
SOURCE Community Bankers Trust Corporation