RICHMOND, Va., Jan. 29, 2021 /PRNewswire/ -- Community
Bankers Trust Corporation (the "Company") (NASDAQ: ESXB), the
holding company for Essex Bank (the "Bank"), today reported results
for the fourth quarter and year ended December 31, 2020.
FINANCIAL HIGHLIGHTS
- Net income was $5.5 million for
the quarter ended December 31, 2020,
compared with net income of $4.5
million in the third quarter of 2020 and net income of
$4.0 million in the fourth quarter of
2019.
- Net income for the year ended December
31, 2020 was $15.5 million, a
decrease of $157,000 from
$15.7 million for the year ended
December 31, 2019, as the provision
for loan losses of $4.2 million in
2020 was $3.9 million higher than in
2019 due to the economic uncertainties created by the coronavirus
(COVID-19) pandemic.
- Net interest income was $14.0
million for the fourth quarter of 2020, a linked quarter
increase of $1.3 million, or
10.1%.
- Interest on deposits declined $463,000 on a linked quarter basis and the
associated cost declined from 0.96% to 0.77%.
- Diluted earnings per share were $0.24 for the fourth quarter of 2020 and
$0.69 for the year ended December 31, 2020 compared with diluted earnings
per share of $0.18 for the fourth
quarter of 2019 and $0.70 for the
year ended December 31, 2019.
- Return on average assets was 1.32% for the fourth quarter of
2020 and 0.99% for the year ended December
31, 2020 compared with return on average assets of 1.14% for
the fourth quarter of 2019 and 1.11% for the year ended
December 31, 2019.
- Return on average equity was 12.64% for the fourth quarter of
2020 and 9.58% for the year ended December
31, 2020 compared with 10.42% for the fourth quarter of 2019
and 10.63% for the year ended December 31,
2019.
OPERATING HIGHLIGHTS
- Loans, excluding purchased credit impaired (PCI) loans, grew
$4.7 million, or 0.4%, during the
fourth quarter of 2020 and $124.0
million, or 11.7%, since year end 2019.
- Loan growth would have been $40.5
million, or 3.7%, during the fourth quarter of 2020 and
$74.8 million, or 7.1%, for the year
ended December 31, 2020 when
excluding loans originated during 2020 under the Paycheck
Protection Program ("PPP") of the Small Business Administration
("SBA").
- Nonperforming loans were $3.5
million at December 31, 2020,
$2.7 million lower than one year
earlier. The ratio of nonperforming assets to loans and other real
estate was 0.67% at December 31, 2020
compared with 1.01% one year earlier.
- Deposits grew $29.4 million
during the fourth quarter of 2020 as total checking balances and
savings accounts grew by $62.1
million while more costly certificates of deposit accounts
declined by $28.7 million.
- Total deposits grew $235.3
million, or 20.2%, during 2020. Total checking, money market
and savings accounts grew $250.9
million during 2020 while certificates of deposit declined
$15.6 million.
- Net interest margin was 3.61% in the fourth quarter of 2020
compared with 3.35% in the third quarter of 2020 and 3.74% in the
fourth quarter of 2019. For the year ended December 31, 2020, the net interest margin was
3.52% compared with 3.82% one year earlier.
- PPP loan balances, net of fees, declined from $85.1 million at September
30, 2020 to $49.3 million at
December 31, 2020.
MANAGEMENT COMMENTS
Rex L. Smith, III, President and
Chief Executive Officer, stated, "Given the volatile economic
environment resulting from the COVID-19 pandemic, we are pleased
with the Company's results for the fourth quarter and the year
2020. After taking a prudent and cautious approach to the
loan loss provision during the first and second quarters of 2020
that reflected the heightened risks associated with the pandemic,
our net income has rebounded meaningfully as we have seen improving
economic conditions in our markets. Our team has delivered robust
year-over-year growth and improvement in several key areas
including loan production, deposit mix, asset quality, and
noninterest income. With regards to asset quality, while we
have seen marked improvements from our forecasts earlier in 2020,
we continue to vigilantly monitor credit quality given the risk of
continued stress in certain sectors. On the interest expense front,
we are currently benefitting from the impact of lower rates driving
a reduction in our deposit expenses."
Smith concluded, "Our Associates worked hard in difficult
circumstances, to help our customers and build strong, lasting
relationships that not only enhance our franchise but also the
communities that we serve. We are optimistic about 2021, and we
will continue to look at ways to enhance shareholder value,
including stock repurchases and our common stock dividend."
RESULTS OF OPERATIONS
Overview
Linked Quarter Basis
Net income was $5.5 million for the fourth quarter of 2020,
compared with net income of $4.5
million in the third quarter of 2020. Earnings per common
share were $0.24 basic and fully
diluted for the fourth quarter of 2020 and $0.20 basic and fully diluted for the third
quarter of 2020. Net interest income increased by $1.3 million in the fourth quarter compared with
the third quarter of 2020. Net interest income was positively
affected by both interest income and interest expense. Interest
income increased $822,000 on a linked
quarter basis and interest expense decreased $464,000. Additionally, noninterest income
increased $53,000 on a linked quarter
basis, led by service charge income, which increased $164,000, and mortgage loan income, which
increased $66,000. Offsetting these
improvements to net income were an increase of $213,000 in noninterest expenses, which were
impacted in the fourth quarter of 2020 by an increase of
$291,000 in salaries and employee
benefits, and an increase of $185,000
in income tax expense. Details of the linked quarter financial
performance of the Company are presented below.
Year-over-Year Twelve Months
Net income for the year
ended December 31, 2020 was
$15.5 million, or $0.70 per common share, basic and $0.69 per common share, fully diluted. This is a
decrease of $157,000, or 1.0%, when
compared with net income of $15.7
million, or $0.71 basic and
$0.70 fully diluted earnings per
share, for the year ended December 31,
2019. The slight decrease was driven by the provision for
loan losses recorded to reflect the business and market disruptions
arising from the COVID-19 pandemic. The provision was
$4.2 million for 2020 compared with
$325,000 for 2019. The decrease
in net income on a year-over-year basis was the result of an
increase of $1.4 million, or 2.7%, in
net interest income, an increase of $594,000, or 11.1%, in noninterest income and a
decrease of $2.0 million in
noninterest expenses. There was an increase of $226,000 in income tax expense in 2020 compared
with 2019. Details on the drivers of these year-over-year changes
are presented below.
Year-over-Year Fourth Quarter
Net income in the fourth
quarter of 2020 increased $1.4
million when compared to the same period in 2019. Net
income was $5.5 million in the fourth
quarter of 2020, with earnings per share of $0.24 basic and fully diluted. Net income
for the fourth quarter of 2019 was $4.0
million, with earnings per share of $0.18 basic and fully diluted. The increase in
net income was driven by an increase of $1.6
million in net interest income, primarily from a decline in
interest expense of $1.5 million in
the fourth quarter of 2020 compared with the same period one year
earlier. Additionally, noninterest income increased $147,000 year over year, driven by an increase of
$146,000 in mortgage loan income.
Noninterest expense increased by $71,000 and income tax expense increased by
$450,000. Offsetting these increases
to net income was a decrease of $200,000 in provision for loan losses, which was
$200,000 in the fourth quarter of
2019. Details of the year-over-year financial performance of the
Company are presented below.
The following table presents summary income statements for the
three months ended December 31, 2020,
September 30, 2020 and December 31, 2019 and for the years ended
December 31, 2020 and December 31, 2019.
SUMMARY INCOME
STATEMENT
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
For the year
ended
|
|
|
31-Dec-20
|
|
30-Sep-20
|
|
31-Dec-19
|
|
31-Dec-20
|
|
31-Dec-19
|
Interest
income
|
$
|
16,371
|
$
|
15,549
|
$
|
16,277
|
$
|
63,617
|
$
|
65,449
|
Interest
expense
|
|
2,372
|
|
2,836
|
|
3,864
|
|
12,307
|
|
15,492
|
Net interest
income
|
|
13,999
|
|
12,713
|
|
12,413
|
|
51,310
|
|
49,957
|
Provision for loan
losses
|
|
-
|
|
-
|
|
200
|
|
4,200
|
|
325
|
Net interest income
after provision for loan losses
|
13,999
|
|
12,713
|
|
12,213
|
|
47,110
|
|
49,632
|
Noninterest
income
|
|
1,525
|
|
1,472
|
|
1,378
|
|
5,948
|
|
5,354
|
Noninterest
expense
|
|
8,739
|
|
8,526
|
|
8,668
|
|
33,732
|
|
35,729
|
Income before income
taxes
|
|
6,785
|
|
5,659
|
|
4,923
|
|
19,326
|
|
19,257
|
Income tax
expense
|
|
1,328
|
|
1,143
|
|
878
|
|
3,778
|
|
3,552
|
Net income
|
$
|
5,457
|
$
|
4,516
|
$
|
4,045
|
$
|
15,548
|
$
|
15,705
|
|
|
|
|
|
|
|
|
|
|
|
EPS Basic
|
$
|
0.24
|
$
|
0.20
|
$
|
0.18
|
$
|
0.70
|
$
|
0.71
|
EPS
Diluted
|
$
|
0.24
|
$
|
0.20
|
$
|
0.18
|
$
|
0.69
|
$
|
0.70
|
Fully Diluted share
count
|
|
22,555
|
|
22,503
|
|
22,696
|
|
22,539
|
|
22,531
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets, annualized
|
|
1.32%
|
|
1.12%
|
|
1.14%
|
|
0.99%
|
|
1.11%
|
Return on average
equity, annualized
|
|
12.64%
|
|
11.04%
|
|
10.42%
|
|
9.58%
|
|
10.63%
|
Net Interest Income
Linked Quarter Basis
Net interest income was
$14.0 million for the quarter ended
December 31, 2020. This was a linked
quarter increase of $1.3 million, or
10.1%. Interest and dividend income on a linked quarter basis
increased $822,000, or 5.3%, to
$16.4 million for the fourth quarter
of 2020. Interest income with respect to loans, excluding PCI
loans, increased $862,000, or 6.8%,
during the fourth quarter of 2020 when compared with the third
quarter of 2020. This increase in interest and fees on loans during
the quarter was due to an increase in PPP loan fees that were
recognized as income when loans were forgiven by the SBA. PPP loan
fees recognized as income were $331,000 in the third quarter of 2020 and
increased to $1.1 million in the
fourth quarter of 2020. PPP loan balances, $85.1 million at September
30, 2020, declined $35.8
million during the fourth quarter of 2020 and were
$49.3 million at December 31, 2020. The average balance of loans,
excluding PCI loans, increased by $3.8
million, or 0.3%, on a linked quarter basis, to $1.173 billion. The average balance in loans for
the fourth quarter was influenced by the $35.8 million decrease in PPP loans during the
quarter. However, the yield on loans for the fourth quarter
of 2020 was increased by the effects of the fees recognized as
loans originated under the PPP were forgiven. The PPP loans carry
an interest rate of 1.00% as stipulated by the SBA. Interest income
with respect to PCI loans was $932,000 in the fourth quarter of 2020, and the
corresponding yield was 14.00%. In the third quarter of 2020,
income on PCI loans was $962,000 with
a yield of 13.21%. As a result of the aforementioned activity, the
yield on all loans increased from 4.55% in the third quarter of
2020 to 4.81% in the fourth quarter of 2020. Interest income on
securities was $1.7 million in each
of the third and fourth quarters of 2020. Interest bearing bank
balances income was $107,000 in the
fourth quarter of 2020, a nominal decline of $14,000 on a linked quarter basis.
Interest income on securities on a tax-equivalent basis equaled
$1.8 million for each of the third
and fourth quarters of 2020. The tax-equivalent yield on the
securities portfolio was 2.77% in the fourth quarter of 2020
compared with 2.89% in the third quarter of 2020 based on a 21.0%
income tax rate. The average balance of securities increased
$11.3 million during the fourth
quarter of 2020 as excess liquidity was invested by the Company. As
a result of these changes in rate and volume, the yield on earning
assets increased from 4.09% in the third quarter of 2020 to 4.22%
in the fourth quarter of 2020.
Interest expense of $2.4 million
in the fourth quarter of 2020 was a decrease of $464,000, or 16.4%, on a linked quarter basis.
Interest on deposits decreased $463,000, or 17.7%. The cost of interest bearing
deposits decreased from 0.96% in the third quarter of 2020 to 0.77%
in the fourth quarter of 2020. This trend should continue in the
first quarter of 2021 as $164.1
million in certificates of deposit, or 28.2% of all
certificates, will mature. These deposits were paying a weighted
average rate of 1.44% at December 31,
2020. Interest on borrowed funds, both short term and FHLB
borrowings, were $221,000 for each of
the third and fourth quarters of 2020. The cost of these borrowings
increased from 1.19% in the third quarter of 2020 to 1.31% in the
fourth quarter of 2020. The Company's cost of interest bearing
liabilities of 0.80% in the fourth quarter of 2020 was a decrease
of 17 basis points from the prior quarter when the cost of interest
bearing liabilities was 0.97%.
With the changes in net interest income noted above, the
tax-equivalent net interest margin increased from 3.35% in the
third quarter of 2020 to 3.61% in the fourth quarter of 2020. The
interest spread was 3.42% for the current quarter compared with
3.12% in the prior quarter. Excluding PPP loans from the net
interest margin calculation would have resulted in a margin of
3.43% for the fourth quarter of 2020 compared with the actual
margin of 3.61%. The yield on the loan portfolio would have
been 4.42% excluding PPP loans versus the actual yield of 4.61%
with PPP loans, and the yield on earning assets would have been
4.07% without PPP loans as opposed to the actual yield of 4.22%
that included PPP loans.
Year-over-Year Twelve Months
Net interest income was
$51.3 million for the year ended
December 31, 2020. This is an
increase of $1.4 million, or 2.7%,
from net interest income of $50.0
million for the year ended December
31, 2019. Interest and dividend income declined by
$1.8 million 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
$929,000, or 1.8%, in interest and
fees on loans, which increased as a result of growth of
$119.0 million, or 11.6%, in the
average balance of loans in 2020 over 2019. The yield on loans
declined from 5.03% for 2019 to 4.59% for 2020. A portion of this
decrease is attributable to the addition of $85.1 million in PPP loans net of fees during the
second and third quarters of 2020 at a rate of 1.00%. Interest and
fees on PCI loans declined by $2.0
million, or 32.9%. Part of this decline is related to
payoffs within charged-off loan pools in the PCI portfolio during
2019. The yield on the PCI portfolio was 16.40% for 2020 compared
with 16.99% for 2019. Interest on deposits in other banks declined
by $53,000. Interest and dividends on
securities declined by $705,000 in
2020 compared with 2019. The yield on earning assets was 4.35% for
2020, a decline of 64 basis points from 4.99% in 2019. The yield on
total loans, which includes PCI loans and PPP loans, declined from
5.44% for 2019 to 4.84% for 2020. The return on interest bearing
bank balances declined from 2.45% to 0.59%, while the
tax-equivalent yield on the securities portfolio declined from
3.23% for 2019 to 2.90% for 2020.
Interest expense of $12.3 million
for 2020 was a decrease of $3.2
million, or 20.6%, from interest expense of $15.5 million for 2019. The cost of interest
bearing liabilities decreased from 1.44% for 2019 to 1.08% for
2020. Interest on deposits decreased $2.7
million due to a decline in the rate paid from 1.39% for
2019 to 1.06% for 2020. Short term borrowing expense decreased by
$89,000, and the cost of FHLB and
other borrowings decreased by $426,000, or 31.7%, as the rate paid decreased
from 2.04% for 2019 to 1.32% for 2020.
The changes to interest income and interest expense led to a
decline in the net interest margin from 3.82% for 2019 to 3.52% for
2020. The interest spread also declined over this time frame from
3.55% in 2019 to 3.27% in 2020. Excluding PPP loans from the net
interest margin calculation would have resulted in a margin of
3.49% for 2020 compared with the actual margin of 3.52%. The
yield on the loan portfolio would have been 4.61% excluding PPP
loans versus the actual yield of 4.59% with PPP loans, and the
yield on earning assets without PPP loans did not change the actual
yield of 4.35% that included PPP loans.
Year-Over-Year Fourth Quarter
Net interest income
increased $1.6 million, or 12.8%,
from the fourth quarter of 2019 to the fourth quarter of 2020. Net
interest income was $14.0 million in
the fourth quarter of 2020 compared with $12.4 million for the same period in 2019.
Interest and dividend income increased $94,000, or 0.6%, over this time period. In the
fourth quarter of 2020, $1.1 million
in PPP origination fees were recognized as income versus none in
the same period of 2019. Interest and fees on loans was
$13.6 million in the fourth quarter
of 2020, an increase of $317,000, or
2.4%, over the same period in 2019, driven by PPP fees recognized.
Interest and fees on PCI loans decreased by $233,000 and was $932,000 in the fourth quarter of 2020.
Securities income was $1.7 million in
each of the periods, and interest on deposits in other banks
increased by $16,000.
The average balance of the loan portfolio, excluding PCI loans,
increased by $126.1 million, year
over year and averaged $1.173 billion
for the fourth quarter of 2020. The average balance of the PCI
portfolio declined $7.3 million
during the year-over-year comparison period. The average balance of
total earning assets increased $221.4
million, or 16.7%, from the fourth quarter of 2019 to the
fourth quarter of 2020. The yield on earning assets decreased from
4.90% in the fourth quarter of 2019 to 4.22% in the fourth quarter
of 2020. The yield on earning assets was the culmination of
decreases in the yield on all loans, from 5.04% in the fourth
quarter of 2019 to 4.61% in the fourth quarter of 2020, in the
tax-equivalent yield on securities, from 3.15% in the fourth
quarter of 2019 to 2.77% in the fourth quarter of 2020, and in the
yield on interest bearing bank balances, from 2.16% to 0.48% year
over year.
Interest expense decreased $1.5
million, or 38.6%, when comparing the fourth quarter of 2020
and the fourth quarter of 2019. Interest expense on deposits
decreased $1.4 million, or 38.8%, as
the cost declined from 1.40% in the fourth quarter of 2019 to 0.77%
for the same period in 2020. The average balance of interest
bearing deposits increased $113.9
million, or 11.4%. This growth was from non-maturity deposit
sources. First, there was an increase of $59.8 million, or 36.8%, in the average balance
of interest bearing checking, which averaged $222.2 million in the fourth quarter of 2020.
Additionally, there was an increase of $57.7
million in the average balance of savings and money market
accounts from the fourth quarter of 2019 to the same period in
2020. Offsetting these increases was a decrease in the average
balance of time deposits of $3.6
million, to $605.0 million for
the fourth quarter of 2020. FHLB and other borrowings benefited
from a decrease in cost from 1.82% in the fourth quarter of 2019 to
1.31% in the fourth quarter of 2020. All of the above
contributed to the reduction of interest expense for
interest-bearing liabilities by $1.5
million despite an increase in the average amount
outstanding of $105.9 million. Also
noteworthy is that, although not an interest bearing category, a
sizeable amount of funding was generated in 2020 by a
year-over-year average balance increase in noninterest bearing
deposits of $107.0 million. 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 1.43% in the fourth quarter of
2019 to 0.80% in the third quarter of 2020.
The tax-equivalent net interest margin decreased 13 basis
points, from 3.74% in the fourth quarter of 2019 to 3.61% in the
fourth quarter of 2020. Likewise, the interest spread decreased
from 3.47% to 3.42% over the same time period. The decrease
in the margin was precipitated by a greater decrease in the yield
on earning assets of 68 basis points compared with a decline in the
cost of interest bearing liabilities of 63 basis points.
The following table compares the Company's net interest margin,
on a tax-equivalent basis, for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019 and for the years ended
December 31, 2020 and December 31, 2019.
NET INTEREST
MARGIN
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
|
31-Dec-20
|
|
|
30-Sep-20
|
|
|
31-Dec-19
|
|
Average interest
earning assets
|
$
|
1,547,575
|
|
$
|
1,517,374
|
|
$
|
1,326,184
|
|
Interest
income
|
$
|
16,371
|
|
$
|
15,549
|
|
$
|
16,277
|
|
Interest income -
tax-equivalent
|
$
|
16,460
|
|
$
|
15,640
|
|
$
|
16,364
|
|
Yield on interest
earning assets
|
|
4.22
|
%
|
|
4.09
|
%
|
|
4.90
|
%
|
Average interest
bearing liabilities
|
$
|
1,175,653
|
|
$
|
1,156,089
|
|
$
|
1,069,709
|
|
Interest
expense
|
$
|
2,372
|
|
$
|
2,836
|
|
$
|
3,864
|
|
Cost of interest
bearing liabilities
|
|
0.80
|
%
|
|
0.97
|
%
|
|
1.43
|
%
|
Net interest
income
|
$
|
13,999
|
|
$
|
12,713
|
|
$
|
12,413
|
|
Net interest income -
tax-equivalent
|
$
|
14,088
|
|
$
|
12,804
|
|
$
|
12,500
|
|
Interest
spread
|
|
3.42
|
%
|
|
3.12
|
%
|
|
3.47
|
%
|
Net interest
margin
|
|
3.61
|
%
|
|
3.35
|
%
|
|
3.74
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year
ended
|
|
|
|
|
|
31-Dec-20
|
|
|
31-Dec-19
|
|
|
|
|
Average interest
earning assets
|
$
|
1,469,980
|
|
$
|
1,320,073
|
|
|
|
|
Interest
income
|
$
|
63,617
|
|
$
|
65,449
|
|
|
|
|
Interest income -
tax-equivalent
|
$
|
63,981
|
|
$
|
65,869
|
|
|
|
|
Yield on interest
earning assets
|
|
4.35
|
%
|
|
4.99
|
%
|
|
|
|
Average interest
bearing liabilities
|
$
|
1,141,194
|
|
$
|
1,077,701
|
|
|
|
|
Interest
expense
|
$
|
12,307
|
|
$
|
15,492
|
|
|
|
|
Cost of interest
bearing liabilities
|
|
1.08
|
%
|
|
1.44
|
%
|
|
|
|
Net interest
income
|
$
|
51,310
|
|
$
|
49,957
|
|
|
|
|
Net interest income -
tax-equivalent
|
$
|
51,674
|
|
$
|
50,377
|
|
|
|
|
Interest
spread
|
|
3.27
|
%
|
|
3.55
|
%
|
|
|
|
Net interest
margin
|
|
3.52
|
%
|
|
3.82
|
%
|
|
|
|
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 on the loan
portfolio, excluding PCI loans, in either the third or fourth
quarters of 2020. There was a provision of $200,000 recorded during the fourth quarter of
2019. For the year ended December 31,
2020, there was a total provision for loan losses of
$4.2 million, compared with
$325,000 for 2019.
The provisions recorded in 2020 were due to the heightened risks
associated with the loan portfolio that resulted from the economic
impact of the rapidly evolving effects of the COVID-19 stay-at-home
orders, business shut-downs and increased unemployment. Beginning
in the first quarter of 2020, management reviews each loan within
the portfolio at least quarterly 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 half 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 for each of the first two quarters 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 for each quarter.
With respect to the PCI portfolio, no provision was recorded
during any quarter in 2020 or 2019 due to the stable nature of the
portfolio's performance and its declining balances over time as the
portfolio amortizes. Additional discussion of loan quality is
presented below.
Noninterest Income
Linked Quarter Basis
Noninterest income was
$1.5 million for the fourth quarter
of 2020, a $53,000 increase compared
with the third quarter of 2020. Service charges and fees
increased $164,000 on a linked
quarter basis and were $777,000 for
the fourth quarter of 2020. Fourth quarter 2020 service charges and
fees were boosted by a one-time payment of $102,000 received for account interchange fees.
Mortgage loan income also increased, $66,000 on a linked quarter basis, and was
$294,000 in the fourth quarter of
2020 compared with $228,000 the prior
quarter. Offsetting these linked quarter increases was a decrease
of $102,000 in other noninterest
income, which was $280,000 in the
fourth quarter of 2020 compared with $382,000 in the third quarter of 2020 when swap
fee income was greater by $117,000.
Also declining on a linked quarter basis was a decline of
$75,000 in securities gains, which
were $3,000 in the fourth quarter of
2020.
Year-Over-Year Twelve Months
Noninterest income was
$5.9 million for 2020, an increase of
$594,000, or 11.1%, over noninterest
income of $5.4 million for 2019.
Mortgage loan income was $1.1
million, an increase of $630,000 for 2020 over 2019. This increase was
created by continuity among the mortgage team, coupled with
attractive rates and increased referrals within the Bank. Other
noninterest income was $1.3 million
for 2020, an increase of $190,000
over the same period in 2019. The increase was primarily the result
from 2020 activity that included a $64,000 gain on the extinguishment of a FHLB
borrowing combined with a $272,000
increase in swap fee income. These items were partially offset by a
decrease of $120,000 from
non-recurring insurance proceeds received in 2019. Gains on
securities transactions were $284,000
in 2020, an increase of $49,000 over
2019. Offsetting these increases to noninterest income were a
decline of $237,000 in service
charges and fees, resulting from reduced transaction volumes
created by the COVID-19 pandemic stay-at-home orders, offset by the
$102,000 one-time account interchange
fee noted above, and a decrease of $35,000 in income on bank owned life insurance.
Gain on sale of loans was $11,000 for
2020 compared with $14,000 in
2019.
Year-Over-Year Fourth Quarter
Noninterest income of
$1.5 million in the fourth quarter of
2020 was an increase of $147,000, or
10.7%, over the fourth quarter of 2019.
Mortgage loan income of $294,000
was an increase of $146,000 year over
year. Gains/(losses) on securities transactions increased
$42,000 year over year and service
charges on deposit accounts of $777,000 in the fourth quarter of 2020 was an
increase of $20,000 and positively
impacted in the fourth quarter of 2020 by the one-time interchange
fee of $102,000. Offsetting these
increases to noninterest income was a decrease of $40,000 in other noninterest income, which was
$280,000 in the fourth quarter of
2020 compared with $320,000 in the
fourth quarter of 2019. Income on bank owned life insurance was
$171,000 in the fourth quarter of
2020, a decrease of $7,000 year over
year.
Noninterest Expenses
Linked Quarter Basis
Noninterest expenses totaled
$8.7 million for the fourth quarter
of 2020, as compared with $8.5
million for the third quarter of 2020, an increase of
$213,000, or 2.5%. Salaries and
employee benefits in the fourth quarter of 2020 were $5.3 million compared with $5.0 million in the third quarter of 2020. This
is an increase of $291,000, or 5.8%,
on a linked quarter basis. This was mainly due to a $161,000 increase in accrued vacation during the
fourth quarter reflecting lower vacation time taken by employees as
a result of COVID-19. Other operating expenses increased
$27,000 on a linked quarter basis and
were $1.5 million in the fourth
quarter of 2020. FDIC assessment increased by $10,000 on a linked quarter basis as a result of
an increase in the assessment base of average total assets minus
average tangible equity. Offsetting these linked quarter increases
was a decline of $57,000 in occupancy
expenses, which were $758,000 in the
fourth quarter of 2020. Data processing fees of $632,000 in the fourth quarter of 2020 reflects a
decrease of $24,000 as does other
real estate expenses, net, which declined by the same amount.
Equipment expense of $320,000
reflects a linked quarter decrease of $10,000.
Year-over-Year Twelve Months
Noninterest expenses were
$33.7 million for the year ended
December 31, 2020, a decrease of
$2.0 million, or 5.6%, year over
year. Salaries and employee benefits declined $1.3 million, or 6.0%. In addition to the
internal loan costs relating to the origination of PPP loans offset
by the increased vacation accrual noted above, the closure of two
branch offices in 2019 have positively affected salaries as well as
other expense categories in 2020, namely occupancy and equipment
expenses. Occupancy expenses were $275,000 lower, equipment expenses were
$117,000 lower, and other operating
expenses decreased $221,000. Other
real estate expenses, net were $152,000 for 2020 and decreased by $566,000 versus the same period in 2019. In the
third quarter of 2019, a nonperforming loan was migrated to OREO
and as part of the process the Bank paid $624,000 in real estate taxes on the property.
FDIC assessment was $639,000 for 2020
and increased $343,000 over 2019
mainly due to a $324,000 assessment
credit received by the FDIC in 2019. Data processing fees were
$2.5 million for 2020, an increase of
$124,000 when compared with 2019.
Year-Over-Year Fourth Quarter
Noninterest expenses
were $8.7 million for the fourth
quarter of 2020. This is a nominal increase of $71,000, or 0.8%, from noninterest expenses of
$8.7 million for the fourth quarter
of 2019. The primary reason for the increase was an increase in
FDIC assessment, which was $184,000
in the fourth quarter of 2020 compared with a credit of
$20,000 in the fourth quarter of 2019
when a $155,000 assessment credit was
received by the FDIC. Data processing fees of $632,000 in the fourth quarter of 2020 reflects
an increase of $44,000 year over
year. Offsetting these increases was a decline in salaries and
employee benefits of $148,000, or
2.7%, in the fourth quarter of 2020 compared with the same period
in 2019. Also decreasing for the period were occupancy expenses,
which were $758,000 in the fourth
quarter of 2020 compared with $791,000 for the same period in 2019, a decrease
of $33,000. Equipment expenses of
$320,000 for the fourth quarter of
2020 were $12,000 lower than the same
period in 2019.
The following table compares the Company's other operating
expenses included in noninterest expenses for the three months
ended December 31, 2020, September 30, 2020, June
30, 2020, March 31, 2020 and
December 31, 2019.
OTHER OPERATING
EXPENSES
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
For the three
months ended
|
|
|
31-Dec-20
|
|
30-Sep-20
|
|
30-Jun-20
|
|
31-Mar-20
|
|
31-Dec-19
|
Bank franchise
tax
|
$
|
237
|
$
|
237
|
$
|
237
|
$
|
237
|
$
|
220
|
Stationery,
printing and supplies
|
|
138
|
|
167
|
|
185
|
|
169
|
|
155
|
Marketing
expense
|
|
89
|
|
79
|
|
111
|
|
96
|
|
89
|
Credit
expense
|
|
114
|
|
71
|
|
162
|
|
178
|
|
86
|
Outside vendor
fees
|
|
146
|
|
177
|
|
190
|
|
237
|
|
223
|
Other
expenses
|
|
726
|
|
692
|
|
527
|
|
603
|
|
668
|
Total other operating
expenses
|
$
|
1,450
|
$
|
1,423
|
$
|
1,412
|
$
|
1,520
|
$
|
1,441
|
Income Taxes
Income tax expense was $1.3
million for the fourth quarter of 2020, compared with income
tax expense of $1.1 million and
$878,000 for the third quarter of
2020 and fourth quarter of 2019, respectively. For the year ended
December 31, 2020, income tax expense
was $3.8 million compared with
$3.6 million for the year ended
December 31, 2019. The effective tax
rate for the fourth quarter of 2020 was 19.6% compared with 20.2%
in the third quarter of 2020 and 17.8% for the fourth quarter of
2019. For the year ended December 31,
2020, the effective tax rate was 19.5% compared with 18.4%
for the year ended December 31, 2019.
The increase in the effective tax rate in 2020 compared with 2019
is the result of a lower level of tax-free municipal bond interest
income.
FINANCIAL CONDITION
Total assets increased $213.9
million, or 15.0%, to $1.645
billion at December 31, 2020
when compared with December 31,
2019. Total loans, excluding PCI loans, were $1.182 billion at December
31, 2020, increasing $124.0
million, or 11.7%, from year end 2019. Of the 2020 increase
in loans, $49.3 million were PPP
loans at December 31, 2020. Total PCI
loans were $24.0 million at
December 31, 2020 versus $32.5 million at December
31, 2019.
The Company provided COVID-19 related payment relief on loans
totaling $182.4 million as of
December 31, 2020. PCI loans
comprised $12.2 million of this
total. As of December 31, 2020,
regular payments have resumed on $143.4
million of these loans, of which PCI comprised $8.4 million. The Company re-extended this
payment relief on $52.7 million of
these loans, $2.0 million of which
were within the PCI portfolio.
Loans, net of fees that the Bank originated under the PPP were
$49.3 million at December 31, 2020 compared with $85.1 million at September
30, 2020 and $83.5 million at
June 30, 2020. All of these balances
are included in commercial loans. As a result of the economic
conditions that existed during 2020, commercial loans, excluding
PPP loans, declined by $15.1 million
from December 31, 2019. Commercial
real estate loans, the largest category of loans at $474.90 million, or 40.2% of gross loans
outstanding, increased $22.2 million,
or 4.9%, during the fourth quarter of 2020. This category increased
$78.0 million, or 19.7%, during 2020.
Construction and land development loans, totaling $182.3 million, grew by $22.5 million, or 14.1%, during the fourth
quarter of 2020 and $35.7 million, or
24.4%, during 2020. Residential 1 – 4 family loans declined during
the fourth quarter of 2020 by $7.1
million and ended the period at $197.2 million, or 16.7% of the portfolio. This
category declined by $26.3 million
during 2020 as more of the home loans originated by the Bank are
sold on the secondary market through its mortgage division, as
evidenced by the increase in mortgage loan income in noninterest
income.
The following table shows the composition of the Company's loan
portfolio, excluding PCI loans, at December
31, 2020, September 30, 2020,
and December 31, 2019.
LOANS (excluding
PCI loans)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
31-Dec-20
|
|
30-Sep-20
|
|
31-Dec-19
|
|
|
|
|
Amount
|
% of
Loans
|
|
|
Amount
|
% of
Loans
|
|
|
Amount
|
% of
Loans
|
|
Mortgage loans on
real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4
family
|
$
|
197,228
|
16.68
|
%
|
$
|
204,366
|
17.35
|
%
|
$
|
223,538
|
21.12
|
%
|
|
Commercial
|
|
474,856
|
40.16
|
|
|
452,677
|
38.44
|
|
|
396,858
|
37.50
|
|
|
Construction and land
development
|
|
182,277
|
15.42
|
|
|
159,766
|
13.57
|
|
|
146,566
|
13.85
|
|
|
Second
mortgages
|
|
6,360
|
0.54
|
|
|
6,488
|
0.55
|
|
|
6,639
|
0.63
|
|
|
Multifamily
|
|
78,158
|
6.61
|
|
|
77,787
|
6.60
|
|
|
72,978
|
6.90
|
|
|
Agriculture
|
|
6,662
|
0.56
|
|
|
7,138
|
0.61
|
|
|
8,346
|
0.79
|
|
|
Total real estate
loans
|
|
945,541
|
79.97
|
|
|
908,222
|
77.12
|
|
|
854,925
|
80.79
|
|
Commercial
loans
|
|
225,386
|
19.06
|
|
|
257,362
|
21.85
|
|
|
191,183
|
18.06
|
|
Consumer installment
loans
|
|
9,996
|
0.85
|
|
|
10,606
|
0.90
|
|
|
11,163
|
1.05
|
|
All other
loans
|
|
1,439
|
0.12
|
|
|
1,519
|
0.13
|
|
|
1,052
|
0.10
|
|
|
Gross
loans
|
|
1,182,362
|
100.00
|
%
|
|
1,177,709
|
100.00
|
%
|
|
1,058,323
|
100.00
|
%
|
Allowance for loan
losses
|
|
(12,340)
|
|
|
|
(12,328)
|
|
|
|
(8,429)
|
|
|
Loans, net of
unearned income
|
$
|
1,170,022
|
|
|
$
|
1,165,381
|
|
|
$
|
1,049,894
|
|
|
The Company's securities portfolio, excluding restricted equity
securities, was $292.5 million at
December 31, 2020 and increased
$35.8 million during the fourth
quarter of 2020 and $69.8 million
since December 31, 2019. U.S.
Treasury issues increased by $11.0
million during the fourth quarter of 2020 and $23.5 million during 2020 as excess liquidity was
invested short term in very liquid and low risk instruments.
Corporate securities with balances, at fair value, of $26.6 million at December
31, 2020, increased by $20.5
million during 2020. State, county and municipal securities,
the largest investment category totaling $146.9 million at December
31, 2020, increased by $22.6
million during 2020. Asset backed securities, consisting of
student loan pools 97% guaranteed by the U.S. Government, increased
by $25.9 million during 2020 and
totaled $37.5 million at December 31, 2020. Offsetting these increases
were a decrease of $16.6 million in
mortgage backed securities and a decline of $6.1 million in balances held in U.S. Government
agency bonds. The Company actively manages the portfolio to improve
its liquidity and maximize the return within the desired risk
profile.
The Company had cash and cash equivalents of $63.2 million at December
31, 2020 compared with $28.7
million at year end 2019, an increase of $34.5 million. The majority of this category
growth, $33.4 million, occurred in
interest bearing bank balances, which were $45.1 million at December
31, 2020, 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 during 2020 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
December 31, 2020, September 30, 2020 and December 31, 2019.
SECURITIES
PORTFOLIO
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
31-Dec-20
|
|
30-Sep-20
|
|
31-Dec-19
|
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
Securities
Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
issue
|
$
|
23,500
|
$
|
23,499
|
$
|
12,500
|
$
|
12,500
|
$
|
-
|
$
|
-
|
U.S. Government
agencies
|
|
25,880
|
|
25,853
|
|
19,942
|
|
19,745
|
|
22,104
|
|
21,936
|
State, county, and
municipal
|
|
118,612
|
|
125,720
|
|
109,976
|
|
116,534
|
|
95,467
|
|
98,592
|
Mortgage backed
securities
|
|
30,434
|
|
32,189
|
|
28,086
|
|
29,951
|
|
48,045
|
|
48,740
|
Asset backed
securities
|
|
36,841
|
|
37,488
|
|
28,748
|
|
28,986
|
|
11,637
|
|
11,604
|
Corporate
|
|
26,136
|
|
26,598
|
|
25,454
|
|
25,937
|
|
6,016
|
|
6,097
|
Total securities
available for sale
|
$
|
261,403
|
$
|
271,347
|
$
|
224,706
|
$
|
233,653
|
$
|
183,269
|
$
|
186,969
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31-Dec-20
|
|
30-Sep-20
|
|
31-Dec-19
|
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
Securities Held to
Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government
agencies
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
10,000
|
$
|
9,988
|
State, county, and
municipal
|
|
21,176
|
|
22,257
|
|
23,026
|
|
24,118
|
|
25,733
|
|
26,645
|
Total securities held
to maturity
|
$
|
21,176
|
|
22,257
|
$
|
23,026
|
|
24,118
|
$
|
35,733
|
|
36,633
|
Interest bearing deposits at December 31,
2020 were $1.100 billion, an
increase of $114.9 million, or 11.7%,
from December 31, 2019. Interest
bearing checking accounts (formerly NOW accounts) of $239.6 million grew by $69.1 million, or 40.5%, during 2020, including
growth of $38.5 million during the
fourth quarter of 2020. Money market deposit accounts were
$154.5 million at December 31, 2020 and grew $33.7 million, or 27.9%, during 2020. Savings
accounts totaled $124.4 million at
December 31, 2020 and grew
$27.8 million, or 28.8%, during 2020.
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 less growth in time
deposits over $250,000, which grew by
$8.9 million, or 7.5%, in 2020 and
were $128.4 million at December 31, 2020. Time deposits less than or
equal to $250,000 declined
$24.6 million in 2020 and were
$452.9 million at December 31, 2020. Time deposit balances
combined were 52.9% of interest bearing deposits at December 31, 2020 and 41.6% of all deposit
balances. This is a decline from 60.6% of interest bearing balances
and 51.3% of all deposit balances at December 31, 2019. The growth in interest bearing
checking accounts, money market accounts and savings accounts, as
well as in noninterest bearing deposits, was $250.9 million, or 44.3%, during 2020. A portion
of this growth was associated with the $85.1
million in PPP loans originated during 2020 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 December 31, 2020,
September 30, 2020 and December 31, 2019.
INTEREST BEARING
DEPOSITS
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
31-Dec-20
|
|
30-Sep-20
|
|
31-Dec-19
|
Interest Bearing
Checking
|
$
|
239,628
|
$
|
201,121
|
$
|
-
|
NOW
|
|
-
|
|
-
|
|
170,532
|
MMDA
|
|
154,503
|
|
158,569
|
|
120,841
|
Savings
|
|
124,384
|
|
118,007
|
|
96,570
|
Time deposits less
than or equal to $250,000
|
|
452,885
|
|
468,549
|
|
477,461
|
Time deposits over
$250,000
|
|
128,400
|
|
141,417
|
|
119,460
|
Total interest
bearing deposits
|
$
|
1,099,800
|
$
|
1,087,663
|
$
|
984,864
|
FHLB borrowings were $57.8 million
at December 310, 2020, compared with $68.5
million at December 31, 2019.
The stable level of FHLB borrowings during 2020 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 1.32% during 2020. There were no Federal funds
purchased at December 31, 2020
compared with $24.4 million at
December 31, 2019.
Shareholders' equity was $169.7
million at December 31, 2020,
or 10.3% of total assets, compared with $155.5 million, or 10.9% of total assets, at
December 31, 2019. During 2020,
the Company repurchased 299,700 shares of common stock at a total
cost of $2.1 million.
Asset Quality – excluding PCI loans
Nonperforming loans were $3.6
million at December 31, 2020,
a decrease of $2.7 million from
$6.2 million at December 31,
2019. Nonperforming loans declined $657,000 during the fourth quarter of 2020. Total
non-performing assets totaled $7.9
million at December 31, 2020
compared with $10.8 million at
December 31, 2019. This is a decrease
of $2.8 million, or 26.4%, during
2020. There were net recoveries of $12,000 in the fourth quarter of 2020 and net
charge-offs of $289,000 for the year
ended December 31, 2020.
The allowance for loan losses equaled 351.4% of nonaccrual loans
at December 31, 2020 compared with
159.3% at December 31, 2019. The
ratio of nonperforming assets to loans and other real estate owned
(OREO) was 0.67% at December 31, 2020
compared with 1.01% at December 31,
2019.
The allowance for loan losses to total loans was 1.04% at
December 30, 2020 and 0.80% at
December 31, 2019. The volume of PPP
loans originated during the second and third quarters of 2020
impacted the ratio. The $49.3
million in PPP loans net of fees outstanding at December 31, 2020 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 allowance for
loan losses to total loans excluding the PPP loans would have
reflected a level of coverage of 1.09% at December 31, 2020.
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)
|
2020
|
|
|
2019
|
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
|
Fourth
|
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
|
Quarter
|
Allowance for loan
losses:
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of
period
|
$
|
12,328
|
$
|
12,238
|
$
|
11,819
|
$
|
8,429
|
|
$
|
8,393
|
Provision for loan
losses
|
|
-
|
|
-
|
|
900
|
|
3,300
|
|
|
200
|
Net (charge-offs)
recoveries
|
|
12
|
|
90
|
|
(481)
|
|
90
|
|
|
(164)
|
End of
period
|
$
|
12,340
|
$
|
12,328
|
$
|
12,238
|
$
|
11,819
|
|
$
|
8,429
|
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)
|
2020
|
|
|
2019
|
|
|
|
31-Dec-20
|
|
30-Sep-20
|
|
30-Jun-20
|
|
31-Mar-20
|
|
|
31-Dec-19
|
|
Nonaccrual
loans
|
$
|
3,512
|
$
|
4,214
|
$
|
4,225
|
$
|
5,172
|
|
$
|
5,292
|
|
Loans past due 90
days and accruing interest
|
|
45
|
|
-
|
|
-
|
|
-
|
|
|
946
|
|
Total nonperforming
loans
|
|
3,557
|
|
4,214
|
|
4,225
|
|
5,172
|
|
|
6,238
|
|
Other real estate
owned
|
|
4,361
|
|
4,416
|
|
4,486
|
|
4,506
|
|
|
4,527
|
|
Total nonperforming
assets
|
$
|
7,918
|
$
|
8,630
|
$
|
8,711
|
$
|
9,678
|
|
$
|
10,765
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses to loans
|
|
1.04
|
%
|
1.05
|
%
|
1.05
|
%
|
1.10
|
%
|
|
0.80
|
%
|
Allowance for loan
losses to nonaccrual loans
|
|
351.37
|
|
292.55
|
|
289.66
|
|
228.52
|
|
|
159.28
|
|
Nonperforming assets
to loans and other real estate
|
|
0.67
|
|
0.73
|
|
0.74
|
|
0.89
|
|
|
1.01
|
|
Net
charge-offs/(recoveries) for quarter to average loans,
annualized
|
|
0.00
|
%
|
(0.03)
|
%
|
0.17
|
%
|
(0.03)
|
%
|
|
0.06
|
%
|
A further breakout of nonaccrual loans, excluding PCI loans, at,
December 31, 2020, September 30, 2020 and December 31, 2019 is below.
NONACCRUAL LOANS
(excluding PCI loans)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
31-Dec-20
|
|
30-Sep-20
|
|
31-Dec-19
|
Mortgage loans on
real estate:
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4
family
|
|
$
|
1,357
|
|
$
|
1,338
|
|
$
|
1,378
|
|
Commercial
|
|
|
730
|
|
|
764
|
|
|
1,006
|
|
Construction and land
development
|
|
|
44
|
|
|
572
|
|
|
376
|
|
Multifamily
|
|
|
-
|
|
|
-
|
|
|
2,463
|
|
Agriculture
|
|
|
45
|
|
|
51
|
|
|
-
|
|
Total real estate
loans
|
|
$
|
2,176
|
|
$
|
2,725
|
|
$
|
5,223
|
Commercial
loans
|
|
|
1,316
|
|
|
1,470
|
|
|
62
|
Consumer installment
loans
|
|
|
20
|
|
|
19
|
|
|
7
|
|
Gross
loans
|
|
$
|
3,512
|
|
$
|
4,214
|
|
$
|
5,292
|
Capital Requirements
The Bank's ratio of total risk-based capital was 13.6% at
December 31, 2020 compared with 13.9%
at December 31, 2019. The tier
1 risk-based capital ratio was 12.7% at December 31, 2020 and 13.2% at December 31, 2019. The Bank's tier 1 leverage
ratio was 10.1% at December 31, 2020
and 11.0% at December 31,
2019. All capital ratios exceed regulatory minimums to
be considered well capitalized. BASEL III introduced the common equity tier 1
capital ratio, which was 12.7% at December
31, 2020 and 13.2% at December 31,
2019.
Earnings Conference Call and Webcast
The Company will host a conference call for interested parties
on Friday, January 29, 2021, at 10:00
a.m. Eastern Time to discuss the financial results for the
fourth quarter and year 2020. 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 January 29, 2021, until 9:00 a.m. Eastern Time on February 19, 2021. The replay will be available
by dialing 877-344-7529 and entering access code 10151230 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 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, 2019 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)
|
|
|
|
|
|
|
|
|
31-Dec-20
|
|
30-Sep-20
|
|
31-Dec-19
|
Assets
|
|
|
|
|
|
|
Cash and due from
banks
|
$
|
17,845
|
$
|
18,689
|
$
|
16,976
|
Interest bearing bank
deposits
|
|
45,118
|
|
56,795
|
|
11,708
|
Federal funds
sold
|
|
222
|
|
-
|
|
-
|
Total cash and
cash equivalents
|
|
63,185
|
|
75,484
|
|
28,684
|
|
|
|
|
|
|
|
Securities available
for sale, at fair value
|
|
271,347
|
|
233,653
|
|
186,969
|
Securities held to
maturity, at cost
|
|
21,176
|
|
23,026
|
|
35,733
|
Equity securities,
restricted, at cost
|
|
8,436
|
|
8,875
|
|
8,855
|
Total
securities
|
|
300,959
|
|
265,554
|
|
231,557
|
|
|
|
|
|
|
|
Loans held for
resale
|
|
-
|
|
1,151
|
|
501
|
|
|
|
|
|
|
|
Loans
|
|
1,182,362
|
|
1,177,709
|
|
1,058,323
|
Purchased credit
impaired (PCI) loans
|
|
24,040
|
|
27,146
|
|
32,528
|
Allowance for loan
losses
|
|
(12,340)
|
|
(12,328)
|
|
(8,429)
|
Allowance for loan
losses – PCI loans
|
|
(156)
|
|
(156)
|
|
(156)
|
Net
loans
|
|
1,193,906
|
|
1,192,371
|
|
1,082,266
|
|
|
|
|
|
|
|
Bank premises and
equipment, net
|
|
27,897
|
|
28,197
|
|
29,472
|
Bank premises and
equipment held for sale
|
|
1,507
|
|
1,589
|
|
1,589
|
Right-of-use leased
assets
|
|
5,530
|
|
5,766
|
|
6,472
|
Other real estate
owned
|
|
4,361
|
|
4,416
|
|
4,527
|
Bank owned life
insurance
|
|
30,029
|
|
29,858
|
|
29,340
|
Other
assets
|
|
17,384
|
|
17,851
|
|
16,432
|
Total
assets
|
$
|
1,644,758
|
$
|
1,622,237
|
$
|
1,430,840
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Noninterest
bearing
|
$
|
298,901
|
$
|
281,679
|
$
|
178,584
|
Interest
bearing
|
|
1,099,800
|
|
1,087,663
|
|
984,864
|
Total
deposits
|
|
1,398,701
|
|
1,369,342
|
|
1,163,448
|
|
|
|
|
|
|
|
Federal funds
purchased
|
|
-
|
|
940
|
|
24,437
|
Federal Home Loan
Bank borrowings
|
|
57,833
|
|
68,000
|
|
68,500
|
Trust preferred
capital notes
|
|
4,124
|
|
4,124
|
|
4,124
|
Lease
liabilities
|
|
5,787
|
|
6,027
|
|
6,737
|
Other
liabilities
|
|
8,659
|
|
8,014
|
|
8,115
|
Total
liabilities
|
|
1,475,104
|
|
1,456,447
|
|
1,275,361
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
Common stock
(200,000,000 shares authorized $0.01 par value;
22,200,929, 22,321,000 and 22,422,621 shares issued and
outstanding, respectively)
|
|
222
|
|
223
|
|
224
|
Additional paid in
capital
|
|
149,822
|
|
150,708
|
|
150,728
|
Retained
earnings
|
|
13,419
|
|
9,300
|
|
2,562
|
Accumulated other
comprehensive income
|
|
6,191
|
|
5,559
|
|
1,965
|
Total
shareholders' equity
|
|
169,654
|
|
165,790
|
|
155,479
|
Total liabilities
and shareholders' equity
|
$
|
1,644,758
|
$
|
1,622,237
|
$
|
1,430,840
|
COMMUNITY BANKERS
TRUST CORPORATION
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
UNAUDITED
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
2020
|
|
2019
|
Interest and
dividend income
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
52,480
|
|
$
|
51,551
|
Interest and fees on
PCI loans
|
|
4,053
|
|
|
6,042
|
Interest on federal
funds sold
|
|
-
|
|
|
14
|
Interest on deposits
in other banks
|
|
338
|
|
|
391
|
Interest and
dividends on securities
|
|
|
|
|
|
Taxable
|
|
5,373
|
|
|
5,870
|
Nontaxable
|
|
1,373
|
|
|
1,581
|
Total interest and
dividend income
|
|
63,617
|
|
|
65,449
|
Interest
expense
|
|
|
|
|
|
Interest on
deposits
|
|
11,366
|
|
|
14,036
|
Interest on borrowed
funds
|
|
941
|
|
|
1,456
|
Total interest
expense
|
|
12,307
|
|
|
15,492
|
|
|
|
|
|
|
Net interest
income
|
|
51,310
|
|
|
49,957
|
Provision for loan
losses
|
|
4,200
|
|
|
325
|
Net interest
income after provision for loan losses
|
|
47,110
|
|
|
49,632
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
Service charges and
fees
|
|
2,594
|
|
|
2,831
|
Gain on securities
transactions, net
|
|
284
|
|
|
235
|
Gain on sale of
loans
|
|
11
|
|
|
14
|
Income on bank owned
life insurance
|
|
689
|
|
|
724
|
Mortgage loan
income
|
|
1,116
|
|
|
486
|
Other
|
|
1,254
|
|
|
1,064
|
Total noninterest
income
|
|
5,948
|
|
|
5,354
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
Salaries and employee
benefits
|
|
20,138
|
|
|
21,423
|
Occupancy
expenses
|
|
3,178
|
|
|
3,453
|
Equipment
expenses
|
|
1,367
|
|
|
1,484
|
FDIC
assessment
|
|
639
|
|
|
296
|
Data processing
fees
|
|
2,453
|
|
|
2,329
|
Other real estate
expenses, net
|
|
152
|
|
|
718
|
Other operating
expenses
|
|
5,805
|
|
|
6,026
|
Total noninterest
expense
|
|
33,732
|
|
|
35,729
|
|
|
|
|
|
|
Income before income
taxes
|
|
19,326
|
|
|
19,257
|
Income tax
expense
|
|
3,778
|
|
|
3,552
|
Net
income
|
$
|
15,548
|
|
$
|
15,705
|
COMMUNITY BANKERS
TRUST CORPORATION
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
Three months
ended
|
|
|
31-Dec-20
|
|
30-Sep-20
|
|
30-Jun-20
|
|
31-Mar-20
|
|
31-Dec-19
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
13,622
|
$
|
12,760
|
$
|
13,012
|
$
|
13,086
|
$
|
13,305
|
Interest and fees on
PCI loans
|
|
932
|
|
962
|
|
1,062
|
|
1,097
|
|
1,165
|
Interest on federal
funds sold
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Interest on deposits
in other banks
|
|
107
|
|
121
|
|
41
|
|
69
|
|
91
|
Interest and
dividends on securities
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
1,373
|
|
1,362
|
|
1,287
|
|
1,351
|
|
1,387
|
Nontaxable
|
|
337
|
|
344
|
|
349
|
|
343
|
|
329
|
Total interest and
dividend income
|
|
16,371
|
|
15,549
|
|
15,751
|
|
15,946
|
|
16,277
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
2,151
|
|
2,614
|
|
3,182
|
|
3,419
|
|
3,515
|
Interest on borrowed
funds
|
|
221
|
|
222
|
|
209
|
|
289
|
|
349
|
Total interest
expense
|
|
2,372
|
|
2,836
|
|
3,391
|
|
3,708
|
|
3,864
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
13,999
|
|
12,713
|
|
12,360
|
|
12,238
|
|
12,413
|
Provision for loan
losses
|
|
-
|
|
-
|
|
900
|
|
3,300
|
|
200
|
Net interest
income after provision for loan losses
|
|
13,999
|
|
12,713
|
|
11,460
|
|
8,938
|
|
12,213
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
Service charges and
fees
|
|
777
|
|
613
|
|
532
|
|
672
|
|
757
|
Gain (loss) on
securities transactions, net
|
|
3
|
|
78
|
|
242
|
|
(39)
|
|
(39)
|
Gain on sale of
loans
|
|
-
|
|
-
|
|
-
|
|
11
|
|
14
|
Income on bank owned
life insurance
|
|
171
|
|
171
|
|
173
|
|
174
|
|
178
|
Mortgage loan
income
|
|
294
|
|
228
|
|
373
|
|
221
|
|
148
|
Other
|
|
280
|
|
382
|
|
296
|
|
296
|
|
320
|
Total noninterest
income
|
|
1,525
|
|
1,472
|
|
1,616
|
|
1,335
|
|
1,378
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
5,332
|
|
5,041
|
|
4,613
|
|
5,152
|
|
5,480
|
Occupancy
expenses
|
|
758
|
|
815
|
|
778
|
|
827
|
|
791
|
Equipment
expenses
|
|
320
|
|
330
|
|
345
|
|
372
|
|
332
|
FDIC
assessment
|
|
184
|
|
174
|
|
156
|
|
125
|
|
(20)
|
Data processing
fees
|
|
632
|
|
656
|
|
573
|
|
592
|
|
588
|
Other real estate
expenses, net
|
|
63
|
|
87
|
|
(4)
|
|
6
|
|
56
|
Other operating
expenses
|
|
1,450
|
|
1,423
|
|
1,412
|
|
1,520
|
|
1,441
|
Total noninterest
expense
|
|
8,739
|
|
8,526
|
|
7,873
|
|
8,594
|
|
8,668
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
6,785
|
|
5,659
|
|
5,203
|
|
1,679
|
|
4,923
|
Income tax
expense
|
|
1,328
|
|
1,143
|
|
1,043
|
|
264
|
|
878
|
Net
income
|
$
|
5,457
|
$
|
4,516
|
$
|
4,160
|
$
|
1,415
|
$
|
4,045
|
COMMUNITY BANKERS
TRUST CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
MARGIN ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2020
|
|
|
Three months ended
September 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
|
$
|
1,173,154
|
|
$
|
13,622
|
|
4.61
|
%
|
|
$
|
1,169,330
|
|
$
|
12,760
|
|
4.33
|
%
|
|
PCI loans,
including fees
|
|
26,059
|
|
|
932
|
|
14.00
|
|
|
|
28,480
|
|
|
962
|
|
13.21
|
|
|
Total
loans
|
|
1,199,213
|
|
|
14,554
|
|
4.81
|
|
|
|
1,197,810
|
|
|
13,722
|
|
4.55
|
|
|
Interest bearing bank
balances
|
|
88,002
|
|
|
107
|
|
0.48
|
|
|
|
70,590
|
|
|
121
|
|
0.68
|
|
|
Federal funds
sold
|
|
211
|
|
|
-
|
|
0.07
|
|
|
|
127
|
|
|
-
|
|
0.07
|
|
|
Securities
(taxable)
|
|
210,404
|
|
|
1,373
|
|
2.61
|
|
|
|
198,296
|
|
|
1,362
|
|
2.75
|
|
|
Securities (tax
exempt)1
|
|
49,745
|
|
|
426
|
|
3.42
|
|
|
|
50,551
|
|
|
435
|
|
3.44
|
|
|
Total earning
assets
|
|
1,547,575
|
|
|
16,460
|
|
4.22
|
|
|
|
1,517,374
|
|
|
15,640
|
|
4.09
|
|
|
Allowance for loan
losses
|
|
(12,487)
|
|
|
|
|
|
|
|
|
(12,424)
|
|
|
|
|
|
|
|
Non-earning
assets
|
|
116,875
|
|
|
|
|
|
|
|
|
108,772
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,651,963
|
|
|
|
|
|
|
|
$
|
1,613,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - interest
bearing
|
$
|
222,224
|
|
$
|
123
|
|
0.22
|
|
|
$
|
200,995
|
|
$
|
112
|
|
0.22
|
|
|
Savings and money
market
|
|
282,327
|
|
|
194
|
|
0.27
|
|
|
|
268,350
|
|
|
241
|
|
0.36
|
|
|
Time
deposits
|
|
604,955
|
|
|
1,834
|
|
1.20
|
|
|
|
612,848
|
|
|
2,261
|
|
1.46
|
|
|
Total interest
bearing deposits
|
|
1,109,506
|
|
|
2,151
|
|
0.77
|
|
|
|
1,082,193
|
|
|
2,614
|
|
0.96
|
|
|
Short-term
borrowings
|
|
111
|
|
|
-
|
|
0.20
|
|
|
|
1,611
|
|
|
1
|
|
0.21
|
|
|
FHLB and other
borrowings
|
|
66,036
|
|
|
221
|
|
1.31
|
|
|
|
72,285
|
|
|
221
|
|
1.19
|
|
|
Total interest
bearing liabilities
|
|
1,175,653
|
|
|
2,372
|
|
0.80
|
|
|
|
1,156,089
|
|
|
2,836
|
|
0.97
|
|
|
Noninterest bearing
deposits
|
|
290,774
|
|
|
|
|
|
|
|
|
281,026
|
|
|
|
|
|
|
|
Other
liabilities
|
|
12,775
|
|
|
|
|
|
|
|
|
12,980
|
|
|
|
|
|
|
|
Total liabilities
|
|
1,479,202
|
|
|
|
|
|
|
|
|
1,450,095
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
172,761
|
|
|
|
|
|
|
|
|
163,627
|
|
|
|
|
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders' equity
|
$
|
1,651,963
|
|
|
|
|
|
|
|
$
|
1,613,722
|
|
|
|
|
|
|
|
Net interest
earnings
|
|
|
|
$
|
14,088
|
|
|
|
|
|
|
|
$
|
12,804
|
|
|
|
|
Interest
spread
|
|
|
|
|
|
|
3.42
|
%
|
|
|
|
|
|
|
|
3.12
|
%
|
|
Net interest
margin
|
|
|
|
|
|
|
3.61
|
%
|
|
|
|
|
|
|
|
3.35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
|
|
$
|
89
|
|
|
|
|
|
|
|
$
|
91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
December 31, 2020
|
|
|
Three months ended
December 31, 2019
|
|
|
|
Average
Balance
Sheet
|
|
Interest
Income /
Expense
|
|
Average
Rates
Earned /
Paid
|
|
|
Average
Balance Sheet
|
|
Interest
Income /
Expense
|
|
Average
Rates
Earned /
Paid
|
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
$
|
1,173,154
|
|
$
|
13,622
|
|
4.61
|
%
|
|
$
|
1,047,069
|
|
$
|
13,305
|
|
5.04
|
%
|
|
PCI loans,
including fees
|
|
26,059
|
|
|
932
|
|
14.00
|
|
|
|
33,331
|
|
|
1,165
|
|
13.68
|
|
|
Total
loans
|
|
1,199,213
|
|
|
14,554
|
|
4.81
|
|
|
|
1,080,400
|
|
|
14,470
|
|
5.31
|
|
|
Interest bearing bank
balances
|
|
88,002
|
|
|
107
|
|
0.48
|
|
|
|
16,644
|
|
|
91
|
|
2.16
|
|
|
Federal funds
sold
|
|
211
|
|
|
-
|
|
0.07
|
|
|
|
90
|
|
|
-
|
|
1.66
|
|
|
Securities
(taxable)
|
|
210,404
|
|
|
1,373
|
|
2.61
|
|
|
|
182,887
|
|
|
1,387
|
|
3.03
|
|
|
Securities (tax
exempt)1
|
|
49,745
|
|
|
426
|
|
3.42
|
|
|
|
46,163
|
|
|
416
|
|
3.60
|
|
|
Total earning
assets
|
|
1,547,575
|
|
|
16,460
|
|
4.22
|
|
|
|
1,326,184
|
|
|
16,364
|
|
4.90
|
|
|
Allowance for loan
losses
|
|
(12,487)
|
|
|
|
|
|
|
|
|
(8,513)
|
|
|
|
|
|
|
|
Non-earning
assets
|
|
116,875
|
|
|
|
|
|
|
|
|
105,654
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,651,963
|
|
|
|
|
|
|
|
$
|
1,423,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - interest
bearing
|
$
|
222,224
|
|
$
|
123
|
|
0.22
|
|
|
$
|
162,449
|
|
$
|
88
|
|
0.22
|
|
|
Savings and money
market
|
|
282,327
|
|
|
194
|
|
0.27
|
|
|
|
224,636
|
|
|
337
|
|
0.60
|
|
|
Time
deposits
|
|
604,955
|
|
|
1,834
|
|
1.20
|
|
|
|
608,560
|
|
|
3,090
|
|
2.01
|
|
|
Total interest
bearing deposits
|
|
1,109,506
|
|
|
2,151
|
|
0.77
|
|
|
|
995,645
|
|
|
3,515
|
|
1.40
|
|
|
Short-term
borrowings
|
|
111
|
|
|
-
|
|
0.20
|
|
|
|
5,462
|
|
|
29
|
|
2.10
|
|
|
FHLB and other
borrowings
|
|
66,036
|
|
|
221
|
|
1.31
|
|
|
|
68,602
|
|
|
320
|
|
1.82
|
|
|
Total interest
bearing liabilities
|
|
1,175,653
|
|
|
2,372
|
|
0.80
|
|
|
|
1,069,709
|
|
|
3,864
|
|
1.43
|
|
|
Noninterest bearing
deposits
|
|
290,774
|
|
|
|
|
|
|
|
|
183,787
|
|
|
|
|
|
|
|
Other
liabilities
|
|
12,775
|
|
|
|
|
|
|
|
|
14,502
|
|
|
|
|
|
|
|
Total liabilities
|
|
1,479,202
|
|
|
|
|
|
|
|
|
1,267,998
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
172,761
|
|
|
|
|
|
|
|
|
155,327
|
|
|
|
|
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders' equity
|
$
|
1,651,963
|
|
|
|
|
|
|
|
$
|
1,423,325
|
|
|
|
|
|
|
|
Net interest
earnings
|
|
|
|
$
|
14,088
|
|
|
|
|
|
|
|
$
|
12,500
|
|
|
|
|
Interest
spread
|
|
|
|
|
|
|
3.42
|
%
|
|
|
|
|
|
|
|
3.47
|
%
|
|
Net interest
margin
|
|
|
|
|
|
|
3.61
|
%
|
|
|
|
|
|
|
|
3.74
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
|
$
|
|
|
|
89
|
|
|
|
|
$
|
|
86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31, 2020
|
|
|
Year ended
December 31, 2019
|
|
|
|
Average
Balance
Sheet
|
|
Interest
Income /
Expense
|
|
Average
Rates
Earned /
Paid
|
|
|
Average
Balance Sheet
|
|
Interest
Income /
Expense
|
|
Average
Rates
Earned /
Paid
|
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
$
|
1,142,833
|
|
$
|
52,480
|
|
4.59
|
%
|
|
$
|
1,023,861
|
|
$
|
51,551
|
|
5.03
|
%
|
|
PCI loans, including
fees
|
|
24,718
|
|
|
4,053
|
|
16.40
|
|
|
|
35,568
|
|
|
6,042
|
|
16.99
|
|
|
Total
loans
|
|
1,167,551
|
|
|
56,533
|
|
4.84
|
|
|
|
1,059,429
|
|
|
57,593
|
|
5.44
|
|
|
Interest bearing bank
balances
|
|
57,022
|
|
|
338
|
|
0.59
|
|
|
|
15,977
|
|
|
391
|
|
2.45
|
|
|
Federal funds
sold
|
|
172
|
|
|
-
|
|
0.27
|
|
|
|
688
|
|
|
14
|
|
2.16
|
|
|
Securities
(taxable)
|
|
195,155
|
|
|
5,373
|
|
2.75
|
|
|
|
188,531
|
|
|
5,870
|
|
3.11
|
|
|
Securities (tax
exempt)1
|
|
50,080
|
|
|
1,737
|
|
3.47
|
|
|
|
55,448
|
|
|
2,001
|
|
3.61
|
|
|
Total earning
assets
|
|
1,469,980
|
|
|
63,981
|
|
4.35
|
|
|
|
1,320,073
|
|
|
65,869
|
|
4.99
|
|
|
Allowance for loan
losses
|
|
(11,391)
|
|
|
|
|
|
|
|
|
(8,821)
|
|
|
|
|
|
|
|
Non-earning
assets
|
|
109,379
|
|
|
|
|
|
|
|
|
101,590
|
|
|
|
|
|
|
|
Total assets
|
$
|
1,567,968
|
|
|
|
|
|
|
|
$
|
1,412,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - interest
bearing
|
$
|
193,919
|
|
$
|
426
|
|
0.22
|
|
|
$
|
157,876
|
|
$
|
346
|
|
0.22
|
|
|
Savings and money
market
|
|
253,118
|
|
|
943
|
|
0.37
|
|
|
|
221,817
|
|
|
1,268
|
|
0.57
|
|
|
Time
deposits
|
|
623,403
|
|
|
9,997
|
|
1.60
|
|
|
|
627,913
|
|
|
12,422
|
|
1.98
|
|
|
Total interest
bearing deposits
|
|
1,070,440
|
|
|
11,366
|
|
1.06
|
|
|
|
1,007,606
|
|
|
14,036
|
|
1.39
|
|
|
Short-term
borrowings
|
|
1,554
|
|
|
24
|
|
1.55
|
|
|
|
4,422
|
|
|
113
|
|
2.56
|
|
|
FHLB and other
borrowings
|
|
69,200
|
|
|
917
|
|
1.32
|
|
|
|
65,673
|
|
|
1,343
|
|
2.04
|
|
|
Total interest
bearing liabilities
|
|
1,141,194
|
|
|
12,307
|
|
1.08
|
|
|
|
1,077,701
|
|
|
15,492
|
|
1.44
|
|
|
Noninterest bearing
deposits
|
|
250,875
|
|
|
|
|
|
|
|
|
174,163
|
|
|
|
|
|
|
|
Other
liabilities
|
|
13,581
|
|
|
|
|
|
|
|
|
13,235
|
|
|
|
|
|
|
|
Total liabilities
|
|
1,405,650
|
|
|
|
|
|
|
|
|
1,265,099
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
162,318
|
|
|
|
|
|
|
|
|
147,743
|
|
|
|
|
|
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders' equity
|
$
|
1,567,968
|
|
|
|
|
|
|
|
$
|
1,412,842
|
|
|
|
|
|
|
|
Net interest
earnings
|
|
|
|
$
|
51,674
|
|
|
|
|
|
|
|
$
|
50,377
|
|
|
|
|
Interest
spread
|
|
|
|
|
|
|
3.27
|
%
|
|
|
|
|
|
|
|
3.55
|
%
|
|
Net interest
margin
|
|
|
|
|
|
|
3.52
|
%
|
|
|
|
|
|
|
|
3.82
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
|
$
|
|
|
|
364
|
|
|
|
|
|
|
|
$
|
420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Income and yields are reported on a tax-equivalent basis assuming a
federal tax rate of 21%
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/community-bankers-trust-corporation-reports-results-for-fourth-quarter-and-year-2020-301217976.html
SOURCE Community Bankers Trust Corporation