Community Bankers Trust Corporation Reports Fourth Quarter and
Annual Results for 2012
GLEN ALLEN, Va., Jan. 30, 2013 /PRNewswire/ -- Community
Bankers Trust Corporation (the "Company") (NYSE MKT: BTC), the
holding company for Essex Bank (the "Bank"), today reported results
for the fourth quarter of 2012 and the year ended December 31, 2012, including the following:
(Logo: http://photos.prnewswire.com/prnh/20120727/PH46884LOGO
)
- Net income for the fourth quarter of 2012 was $1.6 million compared with net income of
$695,000 for the fourth quarter of
2011.
- Net income for the year ended December
31, 2012 was $5.6 million
compared with net income of $1.4
million for the year ended December
31, 2011.
- Earnings per common share, fully diluted, were $0.06 in the fourth quarter of 2012 and were
$0.21 for the full year 2012.
This compares with $0.02 for the
fourth quarter of 2011 and $0.02 for
the year ended December 31, 2011,
respectively.
- Noninterest income increased by $2.5
million, or 50.9%, for the year ended December 31, 2012 compared with the year ended
December 31, 2011.
- Noninterest expense decreased by $3.2
million, or 8.9%, for the year ended December 31, 2012 compared with the year ended
December 31, 2011.
- In December, the Federal Reserve Bank of Richmond and the Bureau of Financial
Institutions of the Virginia State Corporation Commission
terminated their written agreement with the Company and the
Bank.
- In August, the Company received regulatory approvals to pay its
TARP dividend payment due in August, and paid, all five of its then
remaining deferred TARP dividend payments and its current interest
payment due on its trust preferred securities. The total
amount of the payments was $1.4
million, plus interest that had accrued. The Company
is current on its dividend and interest obligations.
Loan information, excluding loans covered by FDIC shared-loss
agreements:
- Gross loans increased $30.8
million, or 5.7%, for the year ended December 31, 2012 and $16.0 million, or 2.9%, for the fourth quarter of
2012.
- Net charged-off loans decreased $8.8
million, or 72.4%, for the year ended December 31, 2012 and were $3.4 million, compared with $12.2 million for the year ended December 31, 2011.
- Nonaccrual loans decreased $7.5
million, or 26.3%, for the year ended December 31, 2012 and $4.7
million, or 18.2%, for the fourth quarter of 2012.
- Total nonperforming assets declined $8.4
million, or 20.7%, for the year ended December 31, 2012 and $5.4
million, or 14.2%, for the fourth quarter of 2012.
- The ratio of the allowance for loan losses to nonaccrual loans
was 61.4% at December 31, 2012
compared with 52.0% at December 31,
2011.
Rex L. Smith, III, President and
Chief Executive Officer of the Company and the Bank, stated,
"The fourth quarter results show the continued success of our
business strategy and finalized a year of prominent accomplishments
for the Company. Our goals for 2012 were to aggressively
manage nonperforming assets, to continue to improve our core
earnings, to pay all of the previously deferred TARP dividend
payments and, if possible, to be released from the written
agreement. Nonperforming assets decreased almost 21% during
2012 despite a continued sluggish economy. Earnings
increased significantly year over year, driven by an increase in
noninterest income and a significant decrease in noninterest
expense. Because of the increase in net income, we were able to
become current on all of our deferred TARP payments in the third
quarter. Finally, we were completely released from our
written agreement in December. The result of these efforts is
reflected in our stock price, which improved 130% year over
year."
Smith continued, "While these goals were quite meaningful, we
have set our sights on new and aggressive goals for
2013. We were able to grow our loan portfolio
significantly in the fourth quarter and I believe that momentum
will continue. In addition, we will strive to have our
nonperforming assets at or below the levels of our peers by the end
of the year. Lastly, we are working with the U.S. Treasury
and our primary regulators on TARP principal repayment strategies
that are non-dilutive to our shareholders. I am excited by
what our team accomplished in 2012, but I am also positive that it
was just the beginning of our goal to add significant value for our
shareholders."
RESULTS OF OPERATIONS
Net income was $1.6 million for
the fourth quarter of 2012. This compares with net income of
$695,000 in the fourth quarter of
2011 and net income of $1.8 million
in the third quarter of 2012. Net income available to common
stockholders was $1.3 million in the
fourth quarter of 2012 compared with net income available to common
stockholders of $423,000 in the
fourth quarter of 2011 and net income available to common
stockholders of $1.5 million in the
third quarter of 2012. For the year ended December 31, 2012, net income was $5.6 million and net income available to common
stockholders was $4.5 million,
compared with net income of $1.4
million and net income available to common stockholders of
$354,000 for the year ended
December 31, 2011.
Net income available to common stockholders was $4.5 million, or $0.21 per common share on a diluted basis, for
the year ended December 31, 2012
compared with net income available to common stockholders of
$354,000, or $0.02 per common share on a diluted basis, for
the year ended December 31, 2011. The
increase of $4.1 million in net
income available to common stockholders was driven by a decrease in
noninterest expense of $3.2 million,
or 8.9%, an increase in noninterest income of $2.5 million, or 50.9%, a reduction in provision
for loan losses of $298,000 and an
increase in net interest income of $220,000. This was offset by an increase in
income tax expense of $2.1
million.
Net income available to common stockholders was $1.3 million, or $0.06 per common share on a diluted basis, for
the quarter ended December 31, 2012
compared with net income available to common stockholders of
$423,000, or $0.02 per common share on a diluted basis, for
the quarter ended December 31,
2011. The increase in net income available to common
stockholders of $874,000, or 206.6%,
was driven by a reduction in noninterest expenses of $1.1 million and an increase in noninterest
income of $631,000. This was
offset by an increase in provision for loan losses of $450,000, a reduction in net interest income of
$148,000 and an increase in income
tax expense of $209,000.
The following table presents summary income statements for the
three months ended December 31, 2012,
September 30, 2012 and December 31, 2011 and the years ended
December 31, 2012 and December 31, 2011.
SUMMARY
INCOME STATEMENT
|
(Dollars
in thousands)
|
For the
three months ended
|
|
For the
year ended
|
|
December
31,
2012
|
|
September
30,
2012
|
|
December
31,
2011
|
|
December
31,
2012
|
|
December
31,
2011
|
Interest
income
|
$
12,919
|
|
$
12,872
|
|
$
13,877
|
|
$
53,719
|
|
$
56,035
|
Interest
expense
|
2,054
|
|
2,339
|
|
2,864
|
|
9,692
|
|
12,228
|
Net
interest income
|
10,865
|
|
10,533
|
|
11,013
|
|
44,027
|
|
43,807
|
Provision
for loan losses
|
450
|
|
-
|
|
-
|
|
1,200
|
|
1,498
|
Net
interest income after provision
|
|
|
|
|
|
|
|
|
|
for loan
losses
|
10,415
|
|
10,533
|
|
11,013
|
|
42,827
|
|
42,309
|
Noninterest income
|
(821)
|
|
152
|
|
(1,452)
|
|
(2,430)
|
|
(4,951)
|
Noninterest expense
|
7,573
|
|
8,039
|
|
8,627
|
|
32,667
|
|
35,854
|
Net income
before income taxes
|
2,021
|
|
2,646
|
|
934
|
|
7,730
|
|
1,504
|
Income tax
expense
|
(448)
|
|
(837)
|
|
(239)
|
|
(2,148)
|
|
(60)
|
Net
income
|
1,573
|
|
1,809
|
|
695
|
|
5,582
|
|
1,444
|
Dividends
on preferred stock
|
221
|
|
221
|
|
221
|
|
884
|
|
884
|
Accretion
of preferred stock discount
|
55
|
|
55
|
|
51
|
|
220
|
|
206
|
Net income
per share available
|
|
|
|
|
|
|
|
|
|
to common
stockholders
|
$
1,297
|
|
$
1,533
|
|
$
423
|
|
$
4,478
|
|
$
354
|
|
|
|
|
|
|
|
|
|
|
EPS
Basic
|
$
0.06
|
|
$
0.07
|
|
$
0.02
|
|
$
0.21
|
|
$
0.02
|
EPS
Diluted
|
$
0.06
|
|
$
0.07
|
|
$
0.02
|
|
$
0.21
|
|
$
0.02
|
Interest Income
Interest income was $12.9 million
for the fourth quarter of 2012, an increase of $47,000, from the third quarter of 2012.
Interest income on securities increased $101,000 on this linked quarter basis, which was
partially offset by a $60,000 decline
in interest and fees on loans.
Year over year, interest income declined $958,000, or 6.9%, when comparing the fourth
quarters of 2012 and 2011. Interest income was $13.9 million in the fourth quarter of 2011 and
declined to $12.9 million in the
fourth quarter of 2012. Interest and fees on FDIC covered
loans declined $1.4 million when
comparing the fourth quarter of 2012 to the fourth quarter of
2011. This was due to a decrease of $11.9 million on the average balance of FDIC
covered loans when comparing the fourth quarter of 2012 to the same
period in 2011. Partially offsetting this decrease was
improved interest and fees on loans, which increased $291,000, from $7.4
million in the fourth quarter of 2011 to $7.7 million in the fourth quarter of 2012.
This was the result of an increase of $43.7
million, or 8.4%, in the average balance of non-covered
loans from the fourth quarter of 2011 to the fourth quarter of
2012.
Interest income was $53.7 million
for the year ended December 31, 2012,
a decrease of $2.3 million from
interest income of $56.0 million for
the year ended December 31,
2011. Interest and fees on FDIC covered loans declined
$3.5 million, from $17.6 million for the year ended December 31, 2011 to $14.1
million for the year ended December
31, 2012. Additionally, securities income declined
$219,000, from $9.1 million for the year ended December 31, 2011 to $8.9
million for the year ended December
31, 2012. The tax-equivalent yield on investment securities
declined from 3.28% for the year ended December 31, 2011 to 3.02% for the year ended
December 31, 2012 as management
repositioned a large portion of the portfolio into variable rate
securities. Offsetting these decreases was an increase of
$1.4 million in interest and fees on
loans, from $29.3 million for the
year ended December 31, 2011 to
$30.7 million for the year ended
December 31, 2012. The average
balance of non-covered loans increased $45.2
million, or 8.8%, and was $556.1
million for the year ended December
31, 2012 compared with $510.9
million for the same period in 2011. The yield
on the average balance of non-covered loans declined from 5.73% for
the year ended December 31, 2011 to
5.51% for the year ended December 31,
2012.
Interest Expense
Interest expense was $2.1 million
for the fourth quarter of 2012 compared with interest expense of
$2.3 million in the third quarter of
2012. Average interest bearing liabilities increased
$12.3 million, or 1.3%, during the
quarter. However, the cost of interest bearing liabilities
declined from 1.02% in the third quarter of 2012 to 0.88% in the
fourth quarter of 2012. This resulted in a decrease of
$285,000, or 12.2%, in the cost of
interest bearing liabilities on a linked quarter basis. The
continued decline in interest expense is the result of higher than
projected demand deposit balances, which has allowed management to
reprice both certificate of deposit maturities at lower rates and
the renewal of $22.0 million in
maturing FHLB advances at lower rates.
Year over year, interest expense declined $810,000, from $2.9
million in the fourth quarter of 2011 to $2.1 million in the fourth quarter of 2012. This
28.3% expense decline resulted from decreases in cost. The
cost of interest bearing liabilities declined from 1.27% in the
fourth quarter of 2011 to 0.88% in the fourth quarter of
2012. The cost of deposits declined similarly from 1.17% in
the fourth quarter of 2011 to 0.85% for the fourth quarter of
2012. The cost of Federal Home Loan Bank (FHLB) and other
borrowings also exhibited improvement, from 3.51% in the fourth
quarter of 2011 to 1.39% in the fourth quarter of 2012. As a result
of the opportunity to obtain these borrowings at lower rates, the
Company increased the average balance of FHLB borrowings by
$14.1 million during the year and the
balance of FHLB borrowings at December 31,
2012 was $49.8 million.
Interest expense declined $2.5
million from $12.2 million for
the year ended December 31, 2011 to
$9.7 million for the year ended
December 31, 2012. This decline
of 20.7% was driven by a reduction in the cost of interest bearing
liabilities from 1.36% for the year ended December 31, 2011 to 1.06% for the year ended
December 31, 2012.
Net Interest Income
Net interest income was $10.9
million for the quarter ended December 31, 2012, compared with $10.5 million for the quarter ended September 30, 2012. This represents an
increase of $332,000, or 3.2%.
On a tax equivalent basis, net interest income was $10.9 million for the fourth quarter of 2012
compared with tax equivalent net interest income of $10.6 million for the third quarter of
2012. The tax equivalent net interest margin increased from
4.32% in the third quarter of 2012 to 4.39% in the fourth quarter
of 2012. This was due to an increase in net interest spread, from
4.25% to 4.34%, on a linked quarter basis.
Year over year, net interest income decreased $148,000, or 1.3%, from $11.0 million in the fourth quarter of 2011 to
$10.9 million in the fourth quarter
of 2012. This was primarily the result of a decrease in the
Company's interest spread, from 4.63% in the fourth quarter of 2011
to 4.34% in the fourth quarter of 2012. This decreased the
Company's net interest margin from 4.69% in the fourth quarter of
2011 to 4.39% for the same period in 2012.
Net interest income was $44.0
million for the year ended December
31, 2012, compared with $43.8
million for the year ended December
31, 2011. This represents an increase in net
interest income for 2012 of $220,000. A decline of $2.3 million in the yield on earning assets was
virtually offset by a decline of $2.5
million in the cost of interest bearing liabilities, which
resulted in the increase of 0.5% in net interest income. The
tax equivalent net interest margin decreased from 4.72% for the
year ended December 31, 2011 to 4.53%
for the year ended December 31,
2012. This was driven by a decrease in interest spread from
4.66% in 2011 to 4.46% in 2012. Interest spread is the
product of yield on earning assets less cost of total
interest-bearing liabilities.
The following tables compare the Company's net interest margin,
on a tax-equivalent basis, for the three months ended December 31, 2012, September 30, 2012 and December 31, 2011 and for the years ended
December 31, 2012 and December 31, 2011.
NET
INTEREST MARGIN
|
(Dollars
in thousands)
|
For the
three months ended
|
|
|
December
31,
2012
|
|
September
30,
2012
|
|
December
31,
2011
|
|
Average
interest earning assets
|
$
996,023
|
|
$
981,090
|
|
$ 947,751
|
|
Interest
income
|
$
12,919
|
|
$
12,872
|
|
$ 13,877
|
|
Interest
income - tax equivalent
|
$
12,988
|
|
$
12,932
|
|
$ 13,968
|
|
Yield on
interest earning assets
|
5.22%
|
|
5.27%
|
|
5.90%
|
|
Average
interest bearing liabilities
|
$
927,856
|
|
$
915,514
|
|
$ 900,610
|
|
Interest
expense
|
$
2,054
|
|
$
2,339
|
|
$ 2,864
|
|
Cost of
interest bearing liabilities
|
0.88%
|
|
1.02%
|
|
1.27%
|
|
Net
interest income
|
$
10,865
|
|
$
10,533
|
|
$ 11,013
|
|
Net
interest income - tax equivalent
|
$
10,934
|
|
$
10,593
|
|
$ 11,104
|
|
Interest
spread
|
4.34%
|
|
4.25%
|
|
4.63%
|
|
Net
interest margin
|
4.39%
|
|
4.32%
|
|
4.69%
|
|
|
For the
year ended
|
|
December
31,
2012
|
|
December
31,
2011
|
Average
interest earning assets
|
$
977,066
|
|
$
938,867
|
Interest
income
|
$
53,719
|
|
$
56,035
|
Interest
income - tax equivalent
|
$
53,971
|
|
$
56,563
|
Yield on
interest earning assets
|
5.52%
|
|
6.02%
|
Average
interest bearing liabilities
|
$
916,038
|
|
$
901,203
|
Interest
expense
|
$
9,692
|
|
$
12,228
|
Cost of
interest bearing liabilities
|
1.06%
|
|
1.36%
|
Net
interest income
|
$
44,027
|
|
$
43,807
|
Net
interest income - tax equivalent
|
$
44,279
|
|
$
44,335
|
Interest
spread
|
4.46%
|
|
4.66%
|
Net
interest margin
|
4.53%
|
|
4.72%
|
Provision for Loan Losses
The provision for loan losses was $450,000 for the quarter ended December 31, 2012 compared with no provision for
the quarters ended September 30, 2012
and December 31, 2011. The
provision for loan losses was $1.2
million for the year ended December
31, 2012 compared with $1.5
million for the year ended December
31, 2011.
The Company records a separate provision for loan losses for its
non-covered loan portfolio and its FDIC covered loan
portfolio. Only the non-covered portfolio had a provision for
the fourth quarter of 2012. The provision for loan losses on
non-covered loans was $1.5 million
for the year ended December 31, 2012
compared with $1.5 million for the
year ended December 31, 2011.
The provision for loan losses on covered loans was a $250,000 credit for the year ended December 31, 2012, which was the result of
improvement in expected losses on the Company's FDIC covered
portfolio, which the Company recognized in the first quarter of the
year. There was no provision for the covered loan portfolio
for the year ended December 31,
2011.
Noninterest Income
Noninterest income was negative $821,000 for the fourth quarter of 2012 compared
with $152,000 for the third quarter
of 2012. The largest component of noninterest income was FDIC
indemnification asset amortization, which reduces noninterest
income, and was $1.5 million in the
fourth quarter of 2012 and $1.6
million in the third quarter of 2012. Amortization of the
FDIC indemnification asset is the result of better than expected
performance on the covered loan portfolio. This better than
expected performance also results in increased accretable yield and
interest income on the covered portfolio. Loss on other real
estate owned (OREO) was $660,000 in
the fourth quarter of 2012 and $767,000 in the third quarter of 2012. Management
proactively assesses OREO and as a result wrote down values by
$477,000 in the third quarter of 2012
and $626,000 in the fourth quarter of
2012.
Noninterest income was positively affected by $138,000 in gains on sales of securities in the
fourth quarter of 2012 and $1.2
million in gains on sales of securities in the third quarter
of 2012. Also positively affecting noninterest income on a
linked quarter basis was an increase in service charges on deposit
accounts of $13,000, from
$716,000 in the third quarter of 2012
to $729,000 in the fourth quarter of
2012. Other noninterest income declined $138,000 on a linked quarter basis and was
$464,000 in the fourth quarter of
2012 compared with $602,000 in the
third quarter of 2012. This decrease reflects fewer
reimbursable loss events in FDIC covered loans.
Year over year, noninterest income increased $631,000, from negative $1.5 million in the fourth quarter of 2011, to
negative $821,000 in the fourth
quarter of 2012. FDIC indemnification asset amortization was
the largest contributor to this increase, $1.1 million, and improved from negative
$2.6 million in the fourth quarter of
2011 to negative $1.5 million for the
same period in 2012. Service charges on deposit accounts
increased $82,000, from $647,000 in the fourth quarter of 2011 to
$729,000 for the same period in
2012. Offsetting these increases was an increase of
$323,000 in loss on OREO. Loss
on OREO was $337,000 in the fourth
quarter of 2011 and $660,000 in the
fourth quarter of 2012. Additionally, gains on sales of
securities declined $168,000 year
over year and were $306,000 in the
fourth quarter of 2011 and $138,000
in the fourth quarter of 2012. Other noninterest income
declined $71,000, from $535,000 in the fourth quarter of 2011 to
$464,000 in the fourth quarter of
2012.
For the year ended December 31,
2012, noninterest income equaled negative $2.4 million, compared with negative $5.0 million for the year ended December 31, 2011. This improvement of
$2.5 million was due to a reduction
in FDIC indemnification asset amortization of $3.4 million, from $10.4
million for the year ended December
31, 2011 to $6.9 million for
the same period in 2012. Also improving noninterest income
performance was a $1.0 million
reduction in loss on OREO, from a loss of $2.9 million for the year ended December 31, 2011 to a loss of $1.8 million for the same period in 2012.
Service charges on deposit accounts increased 9.3%, or $233,000, from $2.5
million for the year ended December
31, 2011 to $2.7 million for
the same period in 2012. Offsetting these increases was a
decrease in gain on sale of securities of $1.4 million, from $2.9
million for the year ended December
31, 2011 to $1.5 million for
the same period in 2012. Other noninterest income declined
$800,000 for the year ended
December 31, 2012 compared with the
same period in 2011. Other noninterest income was
$2.1 million for the year ended
December 31, 2012 and $2.9 million for the year ended December 31, 2011.
Noninterest Expense
On a linked quarter basis, noninterest expenses totaled
$7.6 million for the three months
ended December 31, 2012 compared with
$8.0 million for the quarter ended
September 30, 2012, a decrease of
$466,000, or 5.8%. FDIC
assessment declined $331,000 on a
linked quarter basis, the result of a change in the Bank's risk
classification and an adjustment in the amortization of the FDIC's
2010 prepaid assessment. Data processing expenses declined
$138,000 on a linked quarter basis
and were $473,000 in the third
quarter of 2012 and $335,000 in the
fourth quarter of 2012. During the fourth quarter of 2012,
the Company received a reimbursement of $177,000 from its third party core processor for
indirect expenses related to processing delays as a result of
Hurricane Sandy.
Noninterest expenses declined $1.1
million, or 12.2%, when comparing the fourth quarter of 2012
to the same period in 2011. FDIC assessment declined
$538,000, from $575,000 in the fourth quarter of 2011 to
$37,000 in the fourth quarter of
2012. Other operating expenses declined $176,000, from $1.7
million in the fourth quarter of 2011 to $1.5 million in the fourth quarter of 2012.
Data processing fees declined $124,000 when comparing the fourth quarter of
2012 to the same period in 2011 and were $459,000 in the fourth quarter of 2011 and
$335,000 in the fourth quarter of
2012. Salaries and employee benefits declined $110,000 year over year, from $4.2 million in the fourth quarter of 2011 to
$4.1 million in the fourth quarter of
2012.
For the year ended December 31,
2012, noninterest expenses declined $3.2 million, or 8.9%, when compared with the
same period in 2011. Noninterest expenses were $35.9 million for the year ended December 31, 2011 and declined to $32.7 million for the same period in 2012.
FDIC assessment exhibited the largest category decrease,
$1.3 million, and was $2.8 million for the year ended December 31, 2011 compared with $1.5 million for the same period in 2012, a
decrease of 46.7%. Other operating expenses were $6.3 million and declined $838,000 from $7.2
million for the year ended December
31, 2011. Additional declines for the year ended
December 31, 2012 compared with the
year ended December 31, 2011 were
$393,000 in legal fees, $192,000 in professional fees, $179,000 in occupancy expenses,
$150,000 in equipment expenses,
$92,000 in salaries and employee
benefits and $40,000 in data
processing fees. The decrease in legal fees and professional
fees were primarily a reflection of improved credit quality.
Other improvements reflect a concerted effort on the part of
management to drive overhead expenses lower.
Income Taxes
Income tax expense was $448,000
for the three months ended December 31,
2012, compared with income tax expense of $837,000 in the third quarter of 2012.
Income tax expense was $239,000 in
the fourth quarter of 2011. For the year ended December 31, 2012, income tax expense was
$2.1 million compared with income tax
expense of $60,000 for the year ended
December 31, 2011.
FINANCIAL CONDITION
At December 31, 2012, the Company
had total assets of $1.153 billion,
an increase of $60.8 million, or
5.6%, from total assets of $1.092
billion at December 31, 2011.
Total loans were $660.1 million
at December 31, 2012, increasing
$17.8 million, or 2.8%, from
$642.3 million at December 31, 2011. The carrying
value of FDIC covered loans declined $12.9
million, or 13.2%, from December 31,
2011 and was $84.6 million at
December 31, 2012. Non-covered loans
equaled $575.5 million at
December 31, 2012, increasing
$30.8 million, or 5.6%, since
December 31, 2011.
Non-covered loans, net of unearned income, increased
$15.9 million, or 2.9%, during the
fourth quarter of 2012. Multifamily loans exhibited the
largest dollar increase, $6.7
million, or 30.3%, and ended the year at $28.7 million. Commercial real estate loans
increased $4.8 million, or 2.0%, and
were $246.5 million at December 31, 2012. Residential 1-4 family
loans grew $4.2 million, or
3.2%, in the fourth quarter of 2012, and were $135.4 million at December
31, 2012. Commercial loans grew $4.4 million, or 6.0%, during the fourth quarter
of 2012 and were $77.8 million at
December 31, 2102.
The following table shows the composition of the Company's
non-covered loan portfolio at December 31,
2012, September 30, 2012 and
December 31, 2011.
NON-COVERED LOANS
|
(Dollars
in thousands)
|
December 31, 2012
|
|
September 30, 2012
|
|
December 31, 2011
|
|
|
Amount
|
% of
Non-Covered Loans
|
|
Amount
|
% of
Non-Covered Loans
|
|
Amount
|
% of
Non-Covered Loans
|
Mortgage
loans on real estate:
|
|
|
|
|
|
|
|
|
|
Residential 1-4 family
|
$135,420
|
23.53%
|
|
$131,192
|
23.44%
|
|
$127,200
|
23.34%
|
|
Commercial
|
246,521
|
42.83%
|
|
241,692
|
43.18%
|
|
220,471
|
40.46%
|
|
Construction and land development
|
61,127
|
10.62%
|
|
64,304
|
11.49%
|
|
75,691
|
13.89%
|
|
Second
mortgages
|
7,230
|
1.26%
|
|
7,569
|
1.35%
|
|
8,129
|
1.49%
|
|
Multifamily
|
28,683
|
4.98%
|
|
22,018
|
3.93%
|
|
19,746
|
3.62%
|
|
Agriculture
|
10,359
|
1.80%
|
|
10,527
|
1.88%
|
|
11,444
|
2.10%
|
|
Total real estate loans
|
489,340
|
85.01%
|
|
477,302
|
85.27%
|
|
462,681
|
84.90%
|
Commercial
loans
|
77,835
|
13.52%
|
|
73,415
|
13.12%
|
|
72,149
|
13.24%
|
Consumer
installment loans
|
6,929
|
1.20%
|
|
7,442
|
1.33%
|
|
8,461
|
1.55%
|
All other
loans
|
1,526
|
0.27%
|
|
1,565
|
0.28%
|
|
1,659
|
0.31%
|
|
Gross loans
|
575,630
|
100.00%
|
|
559,724
|
100.00%
|
|
544,950
|
100.00%
|
Allowance
for loan losses
|
(12,920)
|
|
|
(14,303)
|
|
|
(14,835)
|
|
Net
unearned income/unamortized
|
|
|
|
|
|
|
|
|
|
premium on
loans
|
(148)
|
|
|
(192)
|
|
|
(232)
|
|
Non-covered loans, net of unearned income
|
$562,562
|
|
|
$545,229
|
|
|
$529,883
|
|
The Company's securities portfolio, including equity securities,
increased $54.7 million, or 18.0%,
during the year ended December 31,
2012, to $358.8 million, with
realized gains of $1.5 million,
through sales activity. These net gains were taken during the year
in a portfolio repositioning strategy to mitigate interest rate
risk in a higher rate environment. In a higher rate
environment, the liquidity of fixed rate securities is compromised
and interest rate risk increases. The Company has shifted
from mortgage-backed securities balances to floating rate
securities issued by the Small Business Administration (SBA) and
high quality state, county and municipalities. Additionally,
the Company took a short-term position in a $40 million U.S. Treasury issue at December 31, 2012 to fully invest excess cash and
due balances.
The fair value of available-for-sale mortgage backed securities
and available-for-sale mortgage backed securities of U.S.
Government sponsored agencies declined by $127.6 million during 2012. Balances in U.S.
Treasury and U.S. Government agencies increased $145.9 million as the Company enacted its
strategy of buying SBA floating rate securities as a tool to
mitigate interest and liquidity risks in a higher rate
environment. Also, balances in available-for-sale municipal
bonds increased by $55.6
million.
On a linked quarter basis, the Company's securities portfolio,
including equity securities, increased $46.3
million, from $312.4 million
at September 30, 2012 to $358.8 million at December
31, 2012. There were $138,000 in gains realized during the fourth
quarter.
The Company had cash and cash equivalents of $24.1 million at December
31, 2012 compared with $21.8
million at December 31,
2011. There were $5.4 million
in Federal funds purchased at December 31,
2012 compared with no Federal funds sold or purchased at
December 31, 2011.
The following table shows the composition of the Company's
securities portfolio, excluding equity securities, at December 31, 2012, September 30, 2012 and December 31, 2011.
SECURITIES PORTFOLIO
|
(Dollars
in thousands)
|
December 31, 2012
|
|
September 30, 2012
|
|
December 31, 2011
|
|
Amortized Cost
|
Fair Value
|
|
Amortized Cost
|
Fair Value
|
|
Amortized Cost
|
Fair Value
|
Securities Available for Sale
|
|
|
|
|
|
|
|
|
U.S.
Treasury issue and other
|
|
|
|
|
|
|
|
|
U.S. Government
agencies
|
$
153,480
|
$
153,277
|
|
$ 111,523
|
$
110,899
|
|
$ 7,255
|
$
7,414
|
U.S.
Government sponsored agencies
|
500
|
503
|
|
502
|
509
|
|
1,005
|
1,033
|
State,
county and municipal
|
112,110
|
117,596
|
|
100,847
|
105,738
|
|
58,183
|
62,043
|
Corporate
and other bonds
|
7,530
|
7,618
|
|
6,535
|
6,608
|
|
4,801
|
4,631
|
Mortgage
backed securities (MBS)
|
15,192
|
15,560
|
|
16,888
|
17,236
|
|
73,616
|
74,093
|
MBS - U.S.
Government sponsored agencies
|
14,349
|
14,524
|
|
15,422
|
15,404
|
|
82,966
|
83,550
|
Total securities available for sale
|
$
303,161
|
$
309,078
|
|
$ 251,717
|
$
256,394
|
|
$ 227,826
|
$
232,764
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
|
September 30, 2012
|
|
December 31, 2011
|
|
Amortized Cost
|
Fair Value
|
|
Amortized Cost
|
Fair Value
|
|
Amortized Cost
|
Fair Value
|
Securities Held to Maturity
|
|
|
|
|
|
|
|
|
State,
county and municipal
|
$
11,825
|
$
12,967
|
|
$ 11,832
|
$
13,054
|
|
$ 12,168
|
$
13,479
|
Mortgage
backed securities (MBS)
|
9,112
|
9,727
|
|
10,099
|
10,820
|
|
12,743
|
13,565
|
MBS - U.S.
Government sponsored agencies
|
21,346
|
22,534
|
|
26,758
|
28,139
|
|
39,511
|
41,541
|
Total securities held to maturity
|
$
42,283
|
$
45,228
|
|
$ 48,689
|
$
52,013
|
|
$ 64,422
|
$
68,585
|
Interest bearing deposits at December 31,
2012 were $896.3 million, an
increase of $27.8 million from
December 31, 2011. Time deposits $100,000 and over increased $47.2 million during the year ended December 31, 2012 as management obtained
$41.0 million in low cost brokered
and municipal certificates. Low cost NOW accounts increased
$14.2 million, or 11.0%, during 2012
and $25.8 million, or 22.0%, during
the fourth quarter. Savings deposits increased $7.6 million during the year ended December 31, 2012. Time deposits less than
$100,000 decreased $39.0 million during 2012 as the availability of
low cost funds $100,000 and over
allowed management to lower rates on retail certificates.
MMDA accounts declined $2.2 million
during the year ended December 31,
2012 and were $113.2
million.
The following table compares the mix of interest bearing
deposits for December 31, 2012,
September 30, 2012 and December 31, 2011.
INTEREST BEARING DEPOSITS
|
(Dollars
in thousands)
|
|
|
|
|
|
|
|
December 31, 2012
|
|
September 30, 2012
|
|
|
December 31, 2011
|
|
NOW
|
$
142,923
|
|
$
117,120
|
|
$
128,758
|
|
MMDA
|
113,171
|
|
113,288
|
|
115,397
|
|
Savings
|
77,506
|
|
76,499
|
|
69,872
|
|
Time
deposits less than $100,000
|
287,422
|
|
292,374
|
|
326,383
|
|
Time
deposits $100,000 and over
|
275,318
|
|
263,087
|
|
228,128
|
|
Total interest bearing
deposits
|
$
896,340
|
|
$
862,368
|
|
$
868,538
|
|
|
|
|
|
|
|
|
|
|
The Company had FHLB advances of $49.8
million at December 31, 2012
and $37.0 million at December 31, 2011. During the third quarter
of 2012, the Company obtained an additional $13.0 million in FHLB advances, as well as
rolling over $22.0 million in
maturing advances at much lower rates than was being carried prior
to their maturities during the quarter. The Company
anticipates that the repricing on the $37.0
million will result in approximately $480,000 in after tax savings and that net after
tax savings on total FHLB borrowings will be approximately
$370,000.
Stockholders' equity was $115.3
million at December 31, 2012
and $111.2 million at December 31, 2011. The equity-to-asset ratios
were 10.0% at December 31, 2012 and
10.2% at December 31, 2011.
Stockholders' equity was $113.1
million at September 30,
2012.
Asset Quality – non-covered assets
Nonaccrual loans were $21.0
million at December 31, 2012,
compared with $25.7 million at
September 30, 2012 and $28.5 million at December
31, 2011. The decrease from September
30, 2012 was comprised of $3.0
million in additions to nonaccrual loans, $4.6 million of loans returning to accrual status
due to satisfactory payment performance, $1.9 million in charge-offs, $82,000 in foreclosures and $1.4 million in payments to existing loans on
nonaccrual.
Total nonperforming assets decreased $5.4
million, from $37.7 million at
September 30, 2012 to $32.4 million at December
31, 2012. Total nonperforming assets also decreased
$8.4 million, or 20.7%, from total
nonperforming assets of $40.8 million
at December 31, 2011.
There were net charge-offs of $1.8
million in the fourth quarter of 2012 and $3.4 million for the year ended December 31, 2012. Total charge-offs for
the fourth quarter of 2012 were $2.0
million and recoveries of previously charged-off loans for
the same period were $141,000.
Total charge-offs for the year ended December 31, 2012 were $5.5 million and recoveries of previously
charged-off loans for the same period were $2.1 million.
Non-covered OREO decreased $1.1
million in the fourth quarter of 2012 and was $10.8 million at December
31, 2012. The change in non-covered OREO during the fourth
quarter of 2012 was reflected in additions of $425,000, reductions by sales of $900,000 and write-downs of $626,000. Non-covered OREO of $10.8 million at December
31, 2012 was $541,000 higher
than at December 31, 2011.
The allowance for loan losses equaled 61.38% of non-covered
nonaccrual loans at December 31,
2012, compared with 55.59% of non-covered nonaccrual loans
at September 30, 2012 and 51.98% at
December 31, 2011. The ratio of the
allowance for loan losses to total nonperforming assets was 39.94%
at December 31, 2012, compared with
37.93% at September 30, 2012 and
36.36% at December 31, 2011.
Nonperforming assets to loans and other real estate have declined
from 7.35% at December 31, 2011 to
5.52% at December 31, 2012.
The following table reconciles the activity in the Company's
non-covered allowance for loan losses, by quarter, for the past
five quarters.
CREDIT
QUALITY
|
|
|
|
|
|
|
|
|
(Dollars
in thousands)
|
2012
|
|
2012
|
|
2012
|
|
2012
|
|
2011
|
|
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Fourth
|
|
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
|
Allowance
for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
of period
|
$
14,303
|
|
$
13,526
|
|
$
13,935
|
|
$
14,835
|
|
$
15,764
|
|
|
Provision
for loan losses
|
450
|
|
-
|
|
500
|
|
500
|
|
-
|
|
|
Charge-offs
|
(1,974)
|
|
(819)
|
|
(1,147)
|
|
(1,557)
|
|
(969)
|
|
|
Recoveries
|
141
|
|
1,596
|
|
238
|
|
157
|
|
40
|
|
|
Net
(charge-offs) recovery
|
(1,833)
|
|
777
|
|
(909)
|
|
(1,400)
|
|
(929)
|
|
|
End of
period
|
$
12,920
|
|
$
14,303
|
|
$
13,526
|
|
$
13,935
|
|
$
14,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table sets forth selected asset quality data,
excluding FDIC covered assets, and ratios for the dates
indicated:
ASSET
QUALITY (NON-COVERED)
|
(Dollars
in thousands)
|
2012
|
|
2011
|
|
December
|
September
|
June
|
March
|
|
December
|
|
31
|
30
|
30
|
31
|
|
31
|
Nonaccruing loans
|
$
21,048
|
$
25,730
|
$25,168
|
$25,601
|
|
$
28,542
|
Loans past
due over 90 days and accruing interest
|
509
|
85
|
-
|
403
|
|
2,005
|
Total
nonperforming non-covered loans
|
21,557
|
25,815
|
25,168
|
26,004
|
|
30,547
|
Other real
estate owned non-covered
|
10,793
|
11,896
|
11,869
|
12,696
|
|
10,252
|
Total
nonperforming non-covered assets
|
$
32,350
|
$
37,711
|
$37,037
|
$38,700
|
|
$
40,799
|
|
|
|
|
|
|
|
Allowance
for loan losses to loans
|
2.25%
|
2.56%
|
2.46%
|
2.54%
|
|
2.72%
|
Allowance
for loan losses to nonperforming assets
|
39.94%
|
37.93%
|
36.52%
|
36.01%
|
|
36.36%
|
Allowance
for loan losses to nonaccrual loans
|
61.38%
|
55.59%
|
53.74%
|
54.43%
|
|
51.98%
|
Nonperforming assets to loans and other real
estate
|
5.52%
|
6.60%
|
6.60%
|
6.89%
|
|
7.35%
|
Net
charge-offs/(recovery) for quarter to average loans,
|
|
|
|
|
|
|
annualized
|
1.30%
|
(0.56%)
|
0.66%
|
1.02%
|
|
0.71%
|
A further breakout of nonaccrual loans, excluding covered loans,
at December 31, 2012, September 30, 2012 and December 31, 2011 is below:
NON-COVERED NONACCRUAL LOANS
|
(Dollars
in thousands)
|
December 31, 2012
|
|
September 30, 2012
|
|
December 31, 2011
|
|
|
Amount
|
% of
Non-Covered Loans
|
|
Amount
|
% of
Non-Covered Loans
|
|
Amount
|
% of
Non-Covered Loans
|
Mortgage
loans on real estate:
|
|
|
|
|
|
|
|
|
|
Residential 1-4 family
|
$
5,562
|
0.97%
|
|
$
5,474
|
0.98%
|
|
$
5,320
|
0.98%
|
|
Commercial
|
5,818
|
1.01%
|
|
8,916
|
1.59%
|
|
9,187
|
1.69%
|
|
Construction and land development
|
8,814
|
1.53%
|
|
10,318
|
1.84%
|
|
12,718
|
2.33%
|
|
Second
mortgages
|
141
|
0.02%
|
|
140
|
0.03%
|
|
189
|
0.03%
|
|
Multifamily
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
Agriculture
|
250
|
0.04%
|
|
54
|
0.01%
|
|
53
|
0.01%
|
|
Total real estate loans
|
20,585
|
3.58%
|
|
24,902
|
4.45%
|
|
27,467
|
5.04%
|
Commercial
loans
|
385
|
0.07%
|
|
703
|
0.13%
|
|
1,003
|
0.18%
|
Consumer
installment loans
|
78
|
0.01%
|
|
125
|
0.02%
|
|
72
|
0.01%
|
All other
loans
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
Gross loans
|
$
21,048
|
3.66%
|
|
$
25,730
|
4.60%
|
|
$
28,542
|
5.24%
|
Capital Requirements
Total stockholders' equity was $115.3
million at December 31,
2012. The Company's ratio of total risk-based capital
was 16.9% at December 31, 2012
compared to 16.2% at December 31,
2011. The tier 1 risk-based capital ratio was 15.7% at
December 31, 2012 and 15.0% at
December 31, 2011. The Company's tier
1 leverage ratio was 9.4% at December 31,
2012 and 8.9% at December 31,
2011. All capital ratios exceed regulatory minimums.
About Community Bankers Trust Corporation
The Company is the holding company for Essex Bank, a
Virginia state bank with 24
full-service offices, 13 of which are in Virginia, seven of which are in Maryland and four of which are in Georgia. The Company also operates one
loan production office. Additional information is available
on the Company's website at www.cbtrustcorp.com.
Earnings Conference Call and Webcast
The Company will host a conference call for the financial
community on Wednesday, January 30,
2013, at 10:00 a.m. Eastern
Time to discuss the fourth quarter and year 2012 financial
results. The public is invited to listen to this conference call by
dialing 800-860-2442 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
1:00 p.m. Eastern Time on
January 30, 2013 until 9:00 a.m. Eastern Time on February 11, 2013. The replay will be available
by dialing 877-344-7529 and entering access code 10024161 or
through the internet by accessing the "Corporate Overview –
Corporate Profile" page of the Company's internet site 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; the
ability of the Company to comply with regulatory actions, and the
costs associated with doing so; 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 Company's compliance with, and the
timing of future reimbursements from the FDIC to the Company under,
the shared loss agreements; assumptions and estimates that underlie
the accounting for loan pools under the shared loss agreements;
consumer profiles and spending and savings habits; the securities
and credit markets; costs associated with the integration of
banking and other internal operations; management's evaluation of
goodwill and other assets on a periodic basis, and any resulting
impairment charges, under applicable accounting standards; 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, 2011 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.
Consolidated Statements of Financial
Condition
|
Unaudited Condensed
|
(Dollars
in thousands)
|
|
|
|
|
|
|
December 31, 2012
|
|
September 30, 2012
|
|
December 31, 2011
|
Assets
|
|
|
|
|
|
Cash and
due from banks
|
$
12,502
|
|
$
15,116
|
|
$
11,078
|
Interest
bearing bank deposits
|
11,635
|
|
17,298
|
|
10,763
|
Federal
funds sold
|
-
|
|
5,000
|
|
-
|
Total cash and cash equivalents
|
24,137
|
|
37,414
|
|
21,751
|
Securities
available for sale, at fair value
|
309,078
|
|
256,394
|
|
232,764
|
Securities
held to maturity
|
42,283
|
|
48,689
|
|
64,422
|
Equity
securities, restricted, at cost
|
7,405
|
|
7,351
|
|
6,872
|
Total securities
|
358,766
|
|
312,434
|
|
304,058
|
|
|
|
|
|
|
Loans held for resale
|
1,266
|
|
1,736
|
|
580
|
Loans not
covered by FDIC shared loss agreements
|
575,482
|
|
559,532
|
|
544,718
|
Loans
covered by FDIC shared loss agreements
|
84,637
|
|
89,121
|
|
97,561
|
Allowance
for loan losses (non-covered)
|
(12,920)
|
|
(14,303)
|
|
(14,835)
|
Allowance
for loan losses (covered)
|
(484)
|
|
(456)
|
|
(776)
|
Net loans
|
646,715
|
|
633,894
|
|
626,668
|
|
|
|
|
|
|
Bank
premises and equipment
|
33,638
|
|
34,002
|
|
35,084
|
Other real
estate owned
|
10,793
|
|
11,896
|
|
10,252
|
Covered
FDIC other real estate owned
|
3,370
|
|
2,943
|
|
5,764
|
FDIC
receivable
|
895
|
|
715
|
|
1,780
|
Bank owned
life insurance
|
15,146
|
|
15,008
|
|
14,592
|
Core
deposit intangibles, net
|
10,296
|
|
10,863
|
|
12,558
|
FDIC
indemnification asset
|
33,837
|
|
36,191
|
|
42,641
|
Other
assets
|
14,429
|
|
15,181
|
|
16,768
|
Total assets
|
$
1,153,288
|
|
$
1,112,277
|
|
$
1,092,496
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Noninterest bearing
|
$
77,978
|
|
$
78,388
|
|
$
64,953
|
Interest bearing
|
896,340
|
|
862,368
|
|
868,538
|
Total
deposits
|
974,318
|
|
940,756
|
|
933,491
|
|
|
|
|
|
|
Federal
funds purchased
|
5,412
|
|
-
|
|
-
|
Federal
Home Loan Bank advances
|
49,828
|
|
50,000
|
|
37,000
|
Trust
preferred capital notes
|
4,124
|
|
4,124
|
|
4,124
|
Other
liabilities
|
4,289
|
|
4,259
|
|
6,701
|
Total
liabilities
|
1,037,971
|
|
999,139
|
|
981,316
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
Preferred
stock (5,000,000 shares authorized $0.01 par value) 17,680 shares
issued and outstanding
|
17,680
|
|
17,680
|
|
17,680
|
Discount
on preferred stock
|
(234)
|
|
(289)
|
|
(454)
|
Warrants
on preferred stock
|
1,037
|
|
1,037
|
|
1,037
|
Common
stock (200,000,000 shares authorized $0.01 par value; 21,670,212
shares issued and outstanding at December 31,
2012)
|
217
|
|
217
|
|
216
|
Additional
paid in capital
|
144,398
|
|
144,351
|
|
144,243
|
(Accumulated deficit) retained earnings
|
(50,609)
|
|
(51,906)
|
|
(53,761)
|
Accumulated other comprehensive income
|
2,828
|
|
2,048
|
|
2,219
|
Total stockholders'
equity
|
115,317
|
|
113,138
|
|
111,180
|
Total liabilities and stockholders'
equity
|
$
1,153,288
|
|
$
1,112,277
|
|
$
1,092,496
|
|
|
|
Consolidated Statements of
Operations
|
|
|
Unaudited Condensed
|
|
(Dollars
in thousands)
|
|
|
Three
months ended
|
|
Three
months
ended
|
|
December
31,
2012
|
|
September
30,
2012
|
|
June
30,
2012
|
|
March
31,
2012
|
|
December
31,
2011
|
Interest and dividend income
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans
|
$
7,687
|
|
$
7,710
|
|
$
7,574
|
|
$
7,687
|
|
$
7,396
|
Interest and fees on FDIC covered
loans
|
2,894
|
|
2,931
|
|
4,366
|
|
3,914
|
|
4,251
|
Interest on federal funds sold
|
1
|
|
-
|
|
3
|
|
1
|
|
1
|
Interest on deposits in other banks
|
14
|
|
9
|
|
19
|
|
12
|
|
13
|
Investments (taxable)
|
2,189
|
|
2,103
|
|
2,039
|
|
2,077
|
|
2,036
|
Investments (nontaxable)
|
134
|
|
119
|
|
118
|
|
118
|
|
180
|
Total interest income
|
12,919
|
|
12,872
|
|
14,119
|
|
13,809
|
|
13,877
|
Interest expense
|
|
|
|
|
|
|
|
|
|
Interest on deposits
|
1,858
|
|
2,056
|
|
2,241
|
|
2,353
|
|
2,504
|
Interest on federal funds purchased
|
3
|
|
3
|
|
3
|
|
-
|
|
-
|
Interest on other borrowed funds
|
193
|
|
280
|
|
343
|
|
359
|
|
360
|
Total interest expense
|
2,054
|
|
2,339
|
|
2,587
|
|
2,712
|
|
2,864
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
10,865
|
|
10,533
|
|
11,532
|
|
11,097
|
|
11,013
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses
|
450
|
|
-
|
|
500
|
|
250
|
|
-
|
Net interest income after provision for loan
losses
|
10,415
|
|
10,533
|
|
11,032
|
|
10,847
|
|
11,013
|
|
|
|
|
|
|
|
|
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
Loss
on OREO
|
(660)
|
|
(767)
|
|
(229)
|
|
(177)
|
|
(337)
|
FDIC
indemnification asset amortization
|
(1,492)
|
|
(1,579)
|
|
(1,983)
|
|
(1,882)
|
|
(2,603)
|
Gain/(loss) on sale of securities
|
138
|
|
1,180
|
|
290
|
|
(116)
|
|
306
|
Service charges on deposit accounts
|
729
|
|
716
|
|
674
|
|
617
|
|
647
|
Other
|
464
|
|
602
|
|
544
|
|
501
|
|
535
|
Total
noninterest income
|
(821)
|
|
152
|
|
(704)
|
|
(1,057)
|
|
(1,452)
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
4,068
|
|
4,028
|
|
4,177
|
|
4,238
|
|
4,178
|
Occupancy expenses
|
691
|
|
708
|
|
685
|
|
631
|
|
660
|
Equipment expenses
|
256
|
|
266
|
|
270
|
|
295
|
|
298
|
Legal fees
|
9
|
|
3
|
|
15
|
|
24
|
|
63
|
Professional fees
|
84
|
|
74
|
|
148
|
|
85
|
|
126
|
FDIC
assessment
|
37
|
|
368
|
|
496
|
|
584
|
|
575
|
Data
processing fees
|
335
|
|
473
|
|
499
|
|
517
|
|
459
|
Amortization of intangibles
|
566
|
|
565
|
|
565
|
|
565
|
|
565
|
Other operating expenses
|
1,527
|
|
1,554
|
|
1,790
|
|
1,471
|
|
1,703
|
Total noninterest expense
|
7,573
|
|
8,039
|
|
8,645
|
|
8,410
|
|
8,627
|
|
|
|
|
|
|
|
|
|
|
Net income before income
taxes
|
2,021
|
|
2,646
|
|
1,683
|
|
1,380
|
|
934
|
Income tax expense
|
(448)
|
|
(837)
|
|
(473)
|
|
(390)
|
|
(239)
|
|
|
|
|
|
|
|
|
|
|
Net income
|
1,573
|
|
1,809
|
|
1,210
|
|
990
|
|
695
|
Dividends on preferred stock
|
221
|
|
221
|
|
221
|
|
221
|
|
221
|
Accretion of discount on preferred
stock
|
55
|
|
55
|
|
55
|
|
55
|
|
51
|
Net income available to
common
|
|
|
|
|
|
|
|
|
|
stockholders
|
$
1,297
|
|
$
1,533
|
|
$
934
|
|
$
714
|
|
$
423
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Statement Trend Analysis
|
Unaudited Condensed
|
(Dollars
in thousands)
|
Year
ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
2012
|
|
2011
|
|
2010
|
Interest and dividend income
|
|
|
|
|
|
Interest
and fees on loans
|
$
30,658
|
|
$
29,272
|
|
$
33,444
|
Interest
and fees on FDIC covered loans
|
14,105
|
|
17,576
|
|
13,759
|
Interest
on federal funds sold
|
5
|
|
6
|
|
9
|
Interest
on deposits in other banks
|
54
|
|
65
|
|
100
|
Investments (taxable)
|
8,408
|
|
8,091
|
|
8,486
|
Investments (nontaxable)
|
489
|
|
1,025
|
|
3,128
|
Total
interest income
|
53,719
|
|
56,035
|
|
58,926
|
Interest expense
|
|
|
|
|
|
Interest
on deposits
|
8,508
|
|
10,815
|
|
17,041
|
Interest
on federal funds purchased
|
9
|
|
1
|
|
3
|
Interest
on other borrowed funds
|
1,175
|
|
1,412
|
|
1,345
|
Total
interest expense
|
9,692
|
|
12,228
|
|
18,389
|
|
|
|
|
|
|
Net
interest income
|
44,027
|
|
43,807
|
|
40,537
|
|
|
|
|
|
|
Provision for loan losses
|
1,200
|
|
1,498
|
|
27,363
|
Net interest income after provision for loan
losses
|
42,827
|
|
42,309
|
|
13,174
|
Noninterest income
|
|
|
|
|
|
Loss on
OREO
|
(1,833)
|
|
(2,869)
|
|
(5,052)
|
FDIC
indemnification asset amortization
|
(6,936)
|
|
(10,364)
|
|
(3,165)
|
Gains on
sale of securities
|
1,492
|
|
2,868
|
|
3,588
|
Service
charges on deposit accounts
|
2,736
|
|
2,503
|
|
2,464
|
Other
|
2,111
|
|
2,911
|
|
3,809
|
Total
noninterest income
|
(2,430)
|
|
(4,951)
|
|
(1,644)
|
Noninterest expense
|
|
|
|
|
|
Salaries
and employee benefits
|
16,511
|
|
16,603
|
|
19,190
|
Occupancy
expenses
|
2,715
|
|
2,894
|
|
2,948
|
Equipment
expenses
|
1,087
|
|
1,237
|
|
1,394
|
Legal
fees
|
51
|
|
444
|
|
456
|
Professional fees
|
391
|
|
583
|
|
1,802
|
FDIC
assessment
|
1,485
|
|
2,788
|
|
2,395
|
Data
processing fees
|
1,824
|
|
1,864
|
|
2,306
|
Amortization of intangibles
|
2,261
|
|
2,261
|
|
2,261
|
Impairment of goodwill
|
-
|
|
-
|
|
5,727
|
Other
operating expenses
|
6,342
|
|
7,180
|
|
6,774
|
Total
noninterest expense
|
32,667
|
|
35,854
|
|
45,253
|
|
|
|
|
|
|
Net
income/(loss) before income tax
|
7,730
|
|
1,504
|
|
(30,435)
|
Income
tax (expense) benefit
|
(
2,148)
|
|
(60)
|
|
9,442
|
|
|
|
|
|
|
Net
income/(loss)
|
5,582
|
|
1,444
|
|
(20,993)
|
Dividends on preferred stock
|
884
|
|
884
|
|
884
|
Accretion of discount on preferred stock
|
220
|
|
206
|
|
194
|
Net income/(loss) available to common
stockholders
|
$
4,478
|
|
$
354
|
|
$
(22,071)
|
|
Net
Interest Margin Analysis
|
Average
Balance Sheet
|
(Dollars
in thousands)
|
|
|
Three
months ended December 31, 2012
|
|
Three
months ended December 31, 2011
|
|
|
|
Average
Balance
Sheet
|
|
Interest
Income /
Expense
|
|
Average
Rates
Earned /
Paid
|
|
Average
Balance
Sheet
|
|
Interest
Income /
Expense
|
|
Average
Rates
Earned /
Paid
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
including fees
|
$
564,926
|
|
$
7,687
|
|
5.44%
|
|
$
521,194
|
|
$
7,396
|
|
5.68%
|
|
|
Loans
covered by FDIC loss share
|
86,415
|
|
2,894
|
|
13.40%
|
|
98,283
|
|
4,251
|
|
17.30%
|
|
|
Total loans
|
651,341
|
|
10,581
|
|
6.50%
|
|
619,477
|
|
11,647
|
|
7.52%
|
|
|
Interest
bearing bank balances
|
23,636
|
|
14
|
|
0.25%
|
|
26,961
|
|
13
|
|
0.20%
|
|
|
Federal
funds sold
|
2,641
|
|
1
|
|
0.11%
|
|
1,739
|
|
1
|
|
0.10%
|
|
|
Investments (taxable)
|
302,949
|
|
2,189
|
|
2.89%
|
|
280,771
|
|
2,036
|
|
2.90%
|
|
|
Investments (tax exempt) (1)
|
15,456
|
|
203
|
|
5.25%
|
|
18,803
|
|
271
|
|
5.76%
|
|
|
Total earning assets
|
996,023
|
|
12,988
|
|
5.22%
|
|
947,751
|
|
13,968
|
|
5.90%
|
|
|
Allowance
for loan losses
|
(14,323)
|
|
|
|
|
|
(15,983)
|
|
|
|
|
|
|
Non-earning assets
|
141,492
|
|
|
|
|
|
151,277
|
|
|
|
|
|
|
Total assets
|
$
1,123,192
|
|
|
|
|
|
$
1,083,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand -
interest bearing
|
$
240,391
|
|
$
189
|
|
0.31%
|
|
$
235,291
|
|
$
284
|
|
0.48%
|
|
|
Savings
|
77,484
|
|
58
|
|
0.30%
|
|
69,480
|
|
82
|
|
0.47%
|
|
|
Time
deposits
|
552,926
|
|
1,611
|
|
1.17%
|
|
554,713
|
|
2,138
|
|
1.54%
|
|
|
Total interest-bearing
deposits
|
870,801
|
|
1,858
|
|
0.85%
|
|
859,484
|
|
2,504
|
|
1.17%
|
|
|
Fed funds
purchased
|
1,833
|
|
3
|
|
0.51%
|
|
2
|
|
-
|
|
0.71%
|
|
|
FHLB and
other borrowings
|
55,222
|
|
193
|
|
1.39%
|
|
41,124
|
|
360
|
|
3.51%
|
|
|
Total interest-bearing liabilities
|
927,856
|
|
2,054
|
|
0.88%
|
|
900,610
|
|
2,864
|
|
1.27%
|
|
|
Non-interest bearing deposits
|
76,154
|
|
|
|
|
|
66,111
|
|
|
|
|
|
|
Other
liabilities
|
4,216
|
|
|
|
|
|
5,434
|
|
|
|
|
|
|
Total liabilities
|
1,008,226
|
|
|
|
|
|
972,155
|
|
|
|
|
|
|
Stockholders' equity
|
114,966
|
|
|
|
|
|
110,890
|
|
|
|
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders'
equity
|
$
1,123,192
|
|
|
|
|
|
$
1,083,045
|
|
|
|
|
|
|
Net
interest earnings
|
|
|
$
10,934
|
|
|
|
|
|
$
11,104
|
|
|
|
|
Interest
spread
|
|
|
|
|
4.34%
|
|
|
|
|
|
4.63%
|
|
|
Net
interest margin
|
|
|
|
|
4.39%
|
|
|
|
|
|
4.69%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Income and yields are reported on a tax equivalent basis assuming a
federal tax rate of 34%.
|
|
|
|
Net
Interest Margin Analysis
|
Average
Balance Sheet
|
(Dollars
in thousands)
|
|
|
Year
ended December 31, 2012
|
|
Year
ended December 31, 2011
|
|
|
|
|
|
|
|
Average
Balance
Sheet
|
|
Interest
Income /
Expense
|
|
Average
Rates
Earned /
Paid
|
|
Average
Balance
Sheet
|
|
Interest
Income /
Expense
|
|
Average
Rates
Earned /
Paid
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
Loans,
including fees
|
$
556,113
|
|
$
30,658
|
|
5.51%
|
|
$
510,940
|
|
$
29,272
|
|
5.73%
|
|
|
Loans
covered by FDIC loss share
|
91,489
|
|
14,105
|
|
15.42%
|
|
104,558
|
|
17,576
|
|
16.81%
|
|
|
Total loans
|
647,602
|
|
44,763
|
|
6.91%
|
|
615,498
|
|
46,848
|
|
7.61%
|
|
|
Interest
bearing bank balances
|
22,425
|
|
54
|
|
0.24%
|
|
25,678
|
|
65
|
|
0.26%
|
|
|
Federal
funds sold
|
4,254
|
|
5
|
|
0.11%
|
|
4,036
|
|
6
|
|
0.14%
|
|
|
Investments (taxable)
|
289,617
|
|
8,408
|
|
2.90%
|
|
266,887
|
|
8,091
|
|
3.03%
|
|
|
Investments (tax exempt) (1)
|
13,168
|
|
741
|
|
5.63%
|
|
26,768
|
|
1,553
|
|
5.80%
|
|
|
Total earning assets
|
977,066
|
|
53,971
|
|
5.52%
|
|
938,867
|
|
56,563
|
|
6.02%
|
|
|
Allowance
for loan losses
|
(14,601)
|
|
|
|
|
|
(19,614)
|
|
|
|
|
|
|
Non-earning assets
|
145,507
|
|
|
|
|
|
160,217
|
|
|
|
|
|
|
Total assets
|
$
1,107,972
|
|
|
|
|
|
$
1,079,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand -
interest bearing
|
$
238,418
|
|
$
859
|
|
0.36%
|
|
$
234,180
|
|
$
1,323
|
|
0.56%
|
|
|
Savings
|
74,129
|
|
256
|
|
0.35%
|
|
67,469
|
|
347
|
|
0.51%
|
|
|
Time
deposits
|
556,784
|
|
7,393
|
|
1.33%
|
|
558,239
|
|
9,145
|
|
1.64%
|
|
|
Total interest-bearing
deposits
|
869,331
|
|
8,508
|
|
0.98%
|
|
859,888
|
|
10,815
|
|
1.26%
|
|
|
Fed funds
purchased
|
1,348
|
|
9
|
|
0.64%
|
|
191
|
|
1
|
|
0.63%
|
|
|
FHLB and
other borrowings
|
45,359
|
|
1,175
|
|
2.59%
|
|
41,124
|
|
1,412
|
|
3.43%
|
|
|
Total interest-bearing
liabilities
|
916,038
|
|
9,692
|
|
1.06%
|
|
901,203
|
|
12,228
|
|
1.36%
|
|
|
Non-interest bearing deposits
|
72,391
|
|
|
|
|
|
64,150
|
|
|
|
|
|
|
Other
liabilities
|
4,532
|
|
|
|
|
|
4,998
|
|
|
|
|
|
|
Total liabilities
|
992,961
|
|
|
|
|
|
970,351
|
|
|
|
|
|
|
Stockholders' equity
|
115,011
|
|
|
|
|
|
109,119
|
|
|
|
|
|
|
Total liabilities and
stockholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
|
$
1,107,972
|
|
|
|
|
|
$
1,079,470
|
|
|
|
|
|
|
Net
interest earnings
|
|
|
$
44,279
|
|
|
|
|
|
$
44,335
|
|
|
|
|
Interest
spread
|
|
|
|
|
4.46%
|
|
|
|
|
|
4.66%
|
|
|
Net
interest margin
|
|
|
|
|
4.53%
|
|
|
|
|
|
4.72%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Income and yields are reported on a tax equivalent basis assuming a
federal tax rate of 34%.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
The information below presents certain financial information
determined by methods other than in accordance with accounting
principles generally accepted in the
United States of America (GAAP). Common tangible book value
equals total stockholders' equity less preferred stock, goodwill
and identifiable intangible assets, and common tangible book value
per share is computed by dividing common tangible book value by the
number of common shares outstanding. Common tangible assets equal
total assets less preferred stock, goodwill and identifiable
intangible assets.
Management believes that common tangible book value and the
ratio of common tangible book value to common tangible assets are
meaningful because they are some of the measures that the Company
and investors use to assess capital adequacy. Management believes
that presenting the change in common tangible book value per share,
the change in stock price to common tangible book value per share,
and the change in the ratio of common tangible book value to common
tangible assets provide meaningful period-to-period comparisons of
these measures.
These measures are a supplement to GAAP used to prepare the
Company's financial statements and should not be viewed as a
substitute for GAAP measures. In addition, the Company's non-GAAP
measures may not be comparable to non-GAAP measures of other
companies. The following table reconciles these non-GAAP measures
from their respective GAAP basis measures.
|
December 31, 2012
|
|
September 30, 2012
|
|
December 31, 2011
|
Common
Tangible Book Value
|
|
|
|
|
|
Total
stockholder's equity
|
115,317,000
|
|
113,138,000
|
|
111,118,000
|
Preferred
stock (net)
|
18,483,000
|
|
18,428,000
|
|
18,263,000
|
Core
deposit intangible (net)
|
10,296,000
|
|
10,862,000
|
|
12,558,000
|
Common
tangible book value
|
86,538,000
|
|
83,848,000
|
|
80,297,000
|
Shares
outstanding
|
21,670,212
|
|
21,656,951
|
|
21,627,549
|
Common
tangible book value per share
|
$
3.99
|
|
$
3.87
|
|
$
3.71
|
|
|
|
|
|
|
Stock
Price
|
$
2.65
|
|
$
2.80
|
|
$
1.15
|
|
|
|
|
|
|
Price/common tangible book
|
66.4%
|
|
72.3%
|
|
31.0%
|
|
|
|
|
|
|
Common
tangible book/common tangible assets
|
|
|
|
|
|
Total assets
|
1,153,288,000
|
|
1,112,277,000
|
|
1,092,496,000
|
Preferred stock
(net)
|
18,483,000
|
|
18,428,000
|
|
18,263,000
|
Core deposit
intangible
|
10,296,000
|
|
10,863,000
|
|
12,558,000
|
Common
tangible assets
|
1,124,509,000
|
|
1,082,987,000
|
|
1,061,675,000
|
Common
tangible book
|
86,538,841
|
|
83,848,000
|
|
80,297,000
|
Common
tangible equity to assets
|
7.70%
|
|
7.74%
|
|
7.56%
|
SOURCE Community Bankers Trust Corporation