RICHMOND, Va., April 30, 2021 /PRNewswire/ -- Community Bankers
Trust Corporation (the "Company") (NASDAQ: ESXB), the holding
company for Essex Bank (the "Bank"), today reported results for the
quarter ended March 31, 2021.
FINANCIAL HIGHLIGHTS
- Net income was $6.6 million for
the quarter ended March 31, 2021,
compared with net income of $5.5
million in the fourth quarter of 2020 and net income of
$1.4 million in the first quarter of
2020.
- As a result of continued improvement in asset quality and risk
ratings, the allowance for loan losses reflected a reserve recovery
through a credit of $1.4 million to
the provision for loan losses in the first quarter of 2021.
- Net interest income was $14.1
million for the first quarter of 2021, a linked quarter
increase of $79,000, or 0.6%.
- Interest on deposits declined $586,000 on a linked quarter basis, and the
associated cost declined from 0.77% to 0.58%.
- Diluted earnings per share were $0.30 for the first quarter of 2021 compared with
$0.24 for the fourth quarter of 2020
and $0.06 for the first quarter of
2020.
- Return on average assets was 1.60% for the first quarter of
2021 compared with 1.32% for the fourth quarter of 2020 and 0.39%
for the first quarter of 2020.
- Return on average equity was 15.46% for the first quarter of
2021 compared with 12.64% for the fourth quarter of 2020 and 3.58%
for the first quarter of 2020.
OPERATING HIGHLIGHTS
- Loans, excluding purchased credit impaired (PCI) loans, grew
$20.4 million, or 1.7%, during the
first quarter of 2021 and $123.5
million, or 11.4%, since March 31,
2020.
- Loan growth would have been $2.0
million during the first quarter of 2021 and $55.8 million, or 5.2%, for the 12 month period
ended March 31, 2021 when excluding
loans originated during that timeframe under the Paycheck
Protection Program ("PPP") of the Small Business Administration
("SBA").
- Nonperforming loans were $3.5
million at March 31, 2021,
$1.6 million lower than one year
earlier. The ratio of nonperforming assets to loans and other real
estate was 0.65% at March 31, 2021
compared with 0.67% at December 31,
2020 and 0.89% one year earlier.
- Deposits grew $40.6 million, or
2.9%, during the first quarter of 2021, led by $35.0 million of growth in noninterest bearing
demand deposits, while more costly certificate of deposit accounts
declined by $46.9 million. Interest
bearing checking, money market and savings accounts grew, combined,
$52.5 million during the first
quarter of 2021.
- Total deposits grew $218.2
million, or 17.9%, for the 12 month period ended
March 31, 2021. Total checking, money
market and savings accounts grew $327.5
million, or 56.7%, during the last 12 months while
certificates of deposit declined $109.3
million.
- Net interest margin was 3.66% in the first quarter of 2021
compared with 3.61% in the fourth quarter of 2020 compared with
3.68% in the first quarter of 2020.
- PPP loan balances, net of fees, increased $18.4 million during the first quarter of 2021
and were $67.7 million at
March 31, 2021 compared with
$49.3 million at December 31, 2020.
- As a result of the deposit growth noted above, total securities
and cash and equivalents grew $130.6
million year over year and substantially increased
liquidity.
- On April 7, 2021, the Company
sold an item included in other real estate owned at March 31, 2021 in the amount of $3.8 million. The full effects of disposition
will be reported in second quarter results.
MANAGEMENT COMMENTS
Rex L. Smith, III, President and
Chief Executive Officer, stated, "I am pleased with the key
performance metrics of the Bank as we begin to reopen and recover
from the coronavirus pandemic. Credit quality is much better
than we anticipated one year ago when the pandemic began, and
therefore we released a portion of our allowance for loan losses in
the first quarter, which helped to increase earnings. But
even normalizing that event, the earnings for the quarter were
impressive. Net interest income continues to increase as the
margin has remained stable. Noninterest bearing deposit
growth, combined with a reduction in certificates of deposits, has
helped reduce our overall cost of funds."
Smith continued, "We are also participating in the second round
of the PPP loan program and have originated over $45 million in new loans as we continue the
forgiveness of the loans granted in the first round. We
continue to see a return to normal payments for loans that we
previously granted some form of relief, but we are closely
monitoring loans that are in industries still suffering from
limited occupancy and travel restrictions from the pandemic.
Total loan growth was strong for the first two months of the year,
but payoffs and PPP originations slowed total production for the
quarter. We still believe we will see overall loan growth in
the 8% range for 2021."
Smith concluded, "The Company is poised for strong earnings
going forward based on our stable margin and ability to deploy
excess liquidity. We also sold our largest and oldest
foreclosed property in the second week of April, and so the amount
of total nonperforming assets is significantly lower going into the
second quarter. We are very optimistic for the remainder of
2021."
RESULTS OF OPERATIONS
Overview
Linked Quarter Basis
Net income was $6.6 million for the first quarter of 2021,
compared with net income of $5.5
million in the fourth quarter of 2020. Earnings per common
share were $0.30 basic and fully
diluted for the first quarter of 2021 and $0.24 basic and fully diluted for the fourth
quarter of 2020. Provision for loan losses reflected a credit of
$1.4 million for the first quarter of
2021 compared with no provision in the fourth quarter of 2020.
Continued improvement in credit quality and loan risk ratings was
the driver behind the recapture of previous provision. These
improvements reflect a more stable economic climate in the first quarter of 2021 compared
with each quarter in 2020. This is evidenced by the level of
charge-offs and delinquencies, which have remained relatively low.
Also, the majority of loans that were granted COVID-19 related
payment relief have resumed normal payments. Net interest income
increased by $79,000 in the first
quarter compared with the fourth quarter of 2020. Net interest
income was positively affected by a continuation of decreasing
costs in interest expense, which declined $590,000 on a linked quarter basis. Interest and
dividend income decreased $511,000 on
a linked quarter basis. Additionally, noninterest income increased
$103,000 on a linked quarter basis,
led by other noninterest income, which increased $167,000, and mortgage loan income, which
increased $26,000. Offsetting these
improvements to net income were an increase of $16,000 in noninterest expenses, which were
impacted in the first quarter of 2021 by an increase of
$142,000 in other operating expenses,
and an increase of $380,000 in income
tax expense. Details of the linked quarter financial performance of
the Company are presented below.
Year-over-Year First Quarter
Net income in the first
quarter of 2021 increased $5.2
million when compared to the same period in 2020. Net
income was $6.6 million in the first
quarter of 2021, with earnings per share of $0.30 basic and fully diluted. Net income
for the first quarter of 2020 was $1.4
million, with earnings per share of $0.06 basic and fully diluted. The increase in
net income was driven by a change of $4.7
million in the provision for loan losses, which reflected a
credit of $1.4 million in the first
quarter of 2021 compared with a provision of $3.3 million in the first quarter of 2020 at the
outset of the COVID-19 pandemic. The credit in the current quarter
reflected improvement in loan quality as well as loan risk ratings.
Additionally, there was an increase of $1.8
million in net interest income, primarily from a decline in
interest expense of $1.9 million in
the first quarter of 2021 compared with the same period one year
earlier. Noninterest income increased $293,000 year over year, driven by an increase of
$151,000 in other noninterest income
and an increase of $99,000 in
mortgage loan income. Offsetting these increases to net income was
an increase of $161,000 in
noninterest expense and an increase of $1.4
million in income tax expense. 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 March 31, 2021,
December 31, 2020 and March 31, 2020.
SUMMARY INCOME
STATEMENT
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
For the three
months ended
|
|
|
|
31-Mar-21
|
|
|
31-Dec-20
|
|
|
31-Mar-20
|
|
Interest and dividend
income
|
$
|
15,860
|
|
$
|
16,371
|
|
$
|
15,946
|
|
Interest
expense
|
|
1,782
|
|
|
2,372
|
|
|
3,708
|
|
Net interest
income
|
|
14,078
|
|
|
13,999
|
|
|
12,238
|
|
Provision for
(recovery of) loan losses
|
|
(1,400)
|
|
|
-
|
|
|
3,300
|
|
Net interest income
after provision for (recovery of) loan losses
|
15,478
|
|
|
13,999
|
|
|
8,938
|
|
Noninterest
income
|
|
1,628
|
|
|
1,525
|
|
|
1,335
|
|
Noninterest
expense
|
|
8,755
|
|
|
8,739
|
|
|
8,594
|
|
Income before income
taxes
|
|
8,351
|
|
|
6,785
|
|
|
1,679
|
|
Income tax
expense
|
|
1,708
|
|
|
1,328
|
|
|
264
|
|
Net income
|
$
|
6,643
|
|
$
|
5,457
|
|
$
|
1,415
|
|
|
|
|
|
|
|
|
|
|
|
EPS Basic
|
$
|
0.30
|
|
$
|
0.24
|
|
$
|
0.06
|
|
EPS
Diluted
|
$
|
0.30
|
|
$
|
0.24
|
|
$
|
0.06
|
|
Fully Diluted share
count
|
|
22,444
|
|
|
22,555
|
|
|
22,591
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets, annualized
|
|
1.60
|
%
|
|
1.32
|
%
|
|
0.39
|
%
|
Return on average
equity, annualized
|
|
15.46
|
%
|
|
12.64
|
%
|
|
3.58
|
%
|
Net Interest Income
Linked Quarter Basis
Net interest income was
$14.1 million for the quarter ended
March 31, 2021. This was a linked
quarter increase of $79,000, or 0.6%.
Interest and dividend income on a linked quarter basis decreased
$511,000, or 3.1%, to $15.9 million for the first quarter of
2021. Interest income with respect to loans, excluding PCI
loans, decreased $472,000, or 3.5%,
during the first quarter of 2021 when compared with the fourth
quarter of 2020. This decrease in interest and fees on loans during
the quarter was due to a decrease in PPP loan fees that were
recognized as income when loans were forgiven by the SBA. PPP loan
fees recognized as income were $609,000 in the first quarter of 2021 compared
with $1.1 million in the fourth
quarter of 2020. PPP loan balances, $67.7 million at March 31,
2021, reflected an increase from $49.3 million at December
31, 2020 as additional loans were originated in the first
quarter of 2021 under the program.
The average balance of loans, excluding PCI loans, increased by
$18.2 million, or 1.6%, on a linked
quarter basis, to $1.191 billion. The
average balance in loans for the first quarter was influenced by
the net increase of $18.4 million in
PPP loans during the quarter. The yield on loans for the first
quarter of 2021 was 4.48% compared with 4.61% in the fourth quarter
of 2020.
The yield on all loans for each of the first quarter of 2021 and
the fourth quarter of 2020 was increased by the effects of
recognizing net deferred fees on forgiven PPP loans. The PPP loans
carry an interest rate of 1.00% as stipulated by the SBA. Interest
income with respect to PCI loans was $856,000 in the first quarter of 2021, and the
corresponding yield was 14.75%. In the fourth quarter of 2020,
income on PCI loans was $932,000 with
a yield of 14.00%. As a result of the aforementioned activity, the
yield on all loans decreased from 4.81% in the fourth quarter of
2020 to 4.68% in the first quarter of 2021. Interest income on
securities was $1.8 million in the
first quarter of 2021 compared with $1.7
million in the fourth quarter of 2020. Interest bearing bank
balances income was $60,000 in the
first quarter of 2021 compared with $107,000 in the fourth quarter of 2020.
Interest income on securities on a tax-equivalent basis equaled
$1.9 million for the first quarter of
2021 and $1.8 million for the fourth
quarter of 2020. The tax-equivalent yield on the securities
portfolio was 2.65% in the first quarter of 2021 compared with
2.77% in the fourth quarter of 2020 based on a 21.0% income tax
rate. The average balance of securities increased $23.9 million during the first quarter of 2021 as
excess liquidity was invested by the Company. As a result of these
changes in rate and volume, the yield on earning assets decreased
from 4.22% in the fourth quarter of 2020 to 4.12% in the first
quarter of 2021.
Interest expense of $1.8 million
in the first quarter of 2021 was a decrease of $590,000, or 24.9%, on a linked quarter basis.
Interest on deposits decreased $586,000, or 27.2%. The cost of interest bearing
deposits decreased from 0.77% in the fourth quarter of 2020 to
0.58% in the first quarter of 2021. This trend should continue in
the second quarter of 2021 as $91.0
million in certificates of deposit, or 16.9% of all
certificates, will mature. These deposits were paying a weighted
average rate of 1.02% at March 31,
2021. Interest on FHLB and other borrowings, were
$217,000 for the first quarter of
2021 and $221,000 in the fourth
quarter of 2020. The cost of these borrowings decreased from 1.31%
in the fourth quarter of 2020 to 1.26% in the first quarter of
2021. The Company's cost of interest bearing liabilities of 0.62%
in the first quarter of 2021 was a decrease of 18 basis points from
the prior quarter when the cost of interest bearing liabilities was
0.80%.
With the changes in net interest income noted above, the
tax-equivalent net interest margin increased on a linked quarter
basis and was 3.66% in the first quarter of 2021 compared with
3.61% in the fourth quarter of 2020. The interest spread was 3.50%
for the current quarter compared with 3.42% in the prior quarter.
The Company also examined the effects on the net interest margin
without the effects of PPP fees, interest income and average
balances. Excluding these PPP related items from the net interest
margin calculation would have resulted in a margin of 3.59% in the
first quarter of 2021 compared with the actual margin of 3.66%.
Excluding the PPP related items 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 4.43% in the first
quarter of 2021 when excluding the PPP related items versus the
actual yield of 4.48% with the PPP related items, and the yield on
earning assets would have been 4.07% without the PPP related items
as opposed to the actual yield of 4.12% when including the PPP
related items.
Year-Over-Year First Quarter
Net interest income
increased $1.8 million, or 15.0%,
from the first quarter of 2020 to the first quarter of 2021. Net
interest income was $14.1 million in
the first quarter of 2021 compared with $12.2 million for the same period in 2020.
Interest and dividend income decreased $86,000, or 0.5%, over this time period. In the
first quarter of 2021, $609,000 in
PPP origination fees were recognized as income versus none in the
same period of 2020. Interest and fees on loans were $13.2 million in the first quarter of 2021, an
increase of $64,000, or 0.5%, over
the same period in 2020. Interest and fees on PCI loans decreased
by $241,000 and were $856,000 in the first quarter of 2021. Securities
income was $1.8 million in the first
quarter of 2021, an increase of $100,000 over the same period in 2020. Interest
on deposits in other banks decreased by $9,000 year over year.
The average balance of the loan portfolio, excluding PCI loans,
increased by $126.1 million year over
year and averaged $1.191 billion for
the first quarter of 2021. The average balance of the PCI portfolio
declined $8.1 million during the
year-over-year comparison period. The average balance of total
earning assets increased $224.2
million, or 16.7%, from the first quarter of 2020 to the
first quarter of 2021. The yield on earning assets decreased from
4.78% in the first quarter of 2020 to 4.12% in the first quarter of
2021. The yield on earning assets was the culmination of decreases
in the yield on all loans, from 5.19% in the first quarter of 2020
to 4.68% in the first quarter of 2021, in the tax-equivalent yield
on securities, from 3.08% in the first quarter of 2020 to 2.65% in
the first quarter of 2021, and in the yield on interest bearing
bank balances, from 1.68% to 0.34% year over year.
Interest expense decreased $1.9
million, or 51.9%, when comparing the first quarter of 2021
and the first quarter of 2020. Interest expense on deposits
decreased $1.9 million, or 54.2%, as
the cost declined from 1.34% in the first quarter of 2020 to 0.58%
for the same period in 2021. The average balance of interest
bearing deposits increased $70.4
million, or 6.9%. This growth was from non-maturity deposit
sources. First, there was an increase of $80.6 million, or 47.3%, in the average balance
of interest bearing checking, which averaged $250.9 million in the first quarter of 2021.
Additionally, there was an increase of $72.1
million in the average balance of savings and money market
accounts from the first quarter of 2020 to the same period in 2021.
Offsetting these increases was a decrease in the average balance of
time deposits of $82.4 million, to
$550.3 million for the first quarter
of 2021. FHLB and other borrowings benefited from a decrease in
cost from 1.58% in the first quarter of 2020 to 1.26% in the first
quarter of 2021. All of the above contributed to the
reduction of interest expense for interest bearing liabilities by
$1.9 million despite an increase of
$69.0 million in the average amount
outstanding. Also noteworthy is that, although not an interest
bearing category, a sizeable amount of funding was generated in the
first quarter of 2021 by a year-over-year average balance increase
of $139.1 million in noninterest
bearing deposits. The amount of liquidity in the banking system,
along with lower interest rates and a shift in deposit balances,
decreased the cost of interest bearing liabilities from 1.36% in
the first quarter of 2020 to 0.62% in the first quarter of
2021.
The tax-equivalent net interest margin decreased two basis
points, from 3.68% in the first quarter of 2020 to 3.66% in the
first quarter of 2021. Conversely, the interest spread increased
from 3.42% to 3.50% over the same time period. The decrease
in the margin was precipitated by a decrease of 66 basis points in
the yield on earning assets compared with a decline of 74 basis
points in the cost of interest bearing liabilities applied against
growth of $224.2 million, or 16.7%,
in earning assets. As noted in the linked quarter discussion,
without the effects of PPP related items the net interest margin
would have been 3.59% in the first quarter of 2021.
The following table compares the Company's net interest margin,
on a tax-equivalent basis, for the three months ended March 31, 2021, December
31, 2020 and March 31,
2020.
NET INTEREST
MARGIN
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
For the three
months ended
|
|
|
|
31-Mar-21
|
|
|
31-Dec-20
|
|
|
31-Mar-20
|
|
Average interest
earning assets
|
$
|
1,569,107
|
|
$
|
1,547,575
|
|
$
|
1,344,906
|
|
Interest and dividend
income
|
$
|
15,860
|
|
$
|
16,371
|
|
$
|
15,946
|
|
Interest and dividend
income - tax-
equivalent
|
$
|
15,947
|
|
$
|
16,460
|
|
$
|
16,038
|
|
Yield on interest
earning assets
|
|
4.12
|
%
|
|
4.22
|
%
|
|
4.78
|
%
|
Average interest
bearing liabilities
|
$
|
1,162,577
|
|
$
|
1,175,653
|
|
$
|
1,093,585
|
|
Interest
expense
|
$
|
1,782
|
|
$
|
2,372
|
|
$
|
3,708
|
|
Cost of interest
bearing liabilities
|
|
0.62
|
%
|
|
0.80
|
%
|
|
1.36
|
%
|
Net interest
income
|
$
|
14,078
|
|
$
|
13,999
|
|
$
|
12,238
|
|
Net interest income -
tax-equivalent
|
$
|
14,165
|
|
$
|
14,088
|
|
$
|
12,330
|
|
Interest
spread
|
|
3.50
|
%
|
|
3.42
|
%
|
|
3.42
|
%
|
Net interest
margin
|
|
3.66
|
%
|
|
3.61
|
%
|
|
3.68
|
%
|
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 a recovery of $1.4 million of provision for loan losses on the
loan portfolio, excluding PCI loans, in the first quarter of 2021.
This compares with no provision for loan losses for the fourth
quarter of 2020 and a provision of $3.3
million in the first quarter of 2020.
The recovery of provision recorded in the first quarter of 2021
was due to continued improvement in the quality of the loan
portfolio and an overall improvement in the risks associated with
the potential economic impact of the COVID-19 pandemic. Beginning
in the first quarter of 2020, management performs a review of each
loan within the portfolio to identify, and monitor on a going
forward basis, those borrowers that management believed to be
possibly impacted by the economy. Loans identified with increased
risk are aggregated by loan type. During the first quarter of 2020,
this analysis indicated a risk grade migration in a number of loan
categories that led to a heightened risk level in the loan
portfolio. The impact of the loans' risk grade migration was
applied to the allowance for loan loss calculation, which led to
the provision for loan losses of $3.3
million for the first quarter of 2020. The Company
determined that no provision was necessary for the fourth quarter
of 2020 after a similar analysis and review process. Despite the
stay-at-home orders, shut downs, higher than historical
unemployment levels and slow growth, the loan portfolio has
exhibited a trend over the last year of lower nonaccrual loans,
lower other real estate loans and very low charge-offs.
With respect to the PCI portfolio, no provision was recorded
during the first quarter of 2020 or 2019 due to the stable nature
of the portfolio's performance. Additional discussion of loan
quality is presented below.
Noninterest Income
Linked Quarter Basis
Noninterest income was
$1.6 million for the first quarter of
2021, a $103,000 increase compared
with the fourth quarter of 2020. Other noninterest income
increased $167,000 on a linked
quarter basis and was $447,000 for
the first quarter of 2021. This increase was driven by an increase
in insurance commissions of $143,000
in the first quarter of 2021 compared with the prior quarter.
Mortgage loan income also increased, $26,000 on a linked quarter basis, and was
$320,000 in the first quarter of 2021
compared with $294,000 in the prior
quarter. Gains on securities transactions, net were $16,000 in the first quarter of 2021 compared
with $3,000 in the fourth quarter of
2020. Offsetting these linked quarter increases was a decrease of
$98,000 in service charges and fees,
which were $679,000 for the first
quarter of 2021. Fourth quarter 2020 service charges and fees were
boosted by a one-time payment of $102,000 received for account interchange fees.
Income on bank owned life insurance was $166,000 in the first quarter of 2021, a decrease
of $5,000 on a linked quarter
basis.
Year-Over-Year First Quarter
Noninterest income of
$1.6 million in the first quarter of
2021 was an increase of $293,000, or
21.9%, over the first quarter of 2020. Other noninterest
income of $447,000 in the first
quarter of 2021 was an increase of $151,000 over the same period in 2020, driven by
an increase in insurance commission. Mortgage loan income of
$320,000 was an increase of
$99,000 year over year.
Gains/(losses) on securities transactions increased $55,000 year over year, and service charges on
deposit accounts of $679,000 in the
first quarter of 2021 were an increase of $7,000. Offsetting these increases to noninterest
income were a decrease of $11,000 in
gain on sale of loans, of which there were none in the current
quarter, and a decrease of $8,000 in
income on bank owned life insurance, which was $166,000 in the first quarter of 2021, year over
year.
Noninterest Expenses
Linked Quarter Basis
Noninterest expenses totaled
$8.8 million for the first quarter of
2021, as compared with $8.7 million
for the fourth quarter of 2020, a nominal increase of $16,000, or 0.2%. Other operating expenses
increased $142,000, from $1.5 million in the fourth quarter of 2020 to
$1.6 million in the first quarter of
2021. Occupancy expenses increased by $78,000, from $758,000 in the fourth quarter of 2020 to
$836,000 in the first quarter of
2021. FDIC assessment of $212,000 in
the first quarter of 2021 was a linked quarter increase of
$28,000. Offsetting these increases
to noninterest expenses was a decrease of $124,000 in salaries and employee benefits, which
were $5.2 million in the first
quarter of 2021 compared with $5.3
million in the fourth quarter of 2020. Other real estate
expenses, net were $11,000, a linked
quarter decrease of $52,000.
Equipment expense of $288,000 was a
linked quarter decrease of $32,000,
and data processing fees of $608,000
in the first quarter of 2021 reflected a decrease of $24,000.
Year-Over-Year First Quarter
Noninterest expenses were
$8.8 million for the first quarter of
2021. This is an increase of $161,000, or 1.9%, from noninterest expenses of
$8.6 million for the first quarter of
2020. The largest component of the increase was an increase in FDIC
assessment, which was $212,000 in the
first quarter of 2021 compared with $125,000 in the first quarter of 2020. Other
noninterest expenses were $1.6
million in the first quarter of 2021, an increase of
$72,000 over the same quarter one
year earlier. Salaries and employee benefits of $5.2 million in the first quarter of 2021
increased $56,000 over the first
quarter of 2020. Data processing fees of $608,000 in the first quarter of 2021 reflected
an increase of $16,000 year over
year. Offsetting these increases was a year-over-year decline of
$84,000 in equipment expenses, which
were $288,000 for the first quarter
of 2021.
The following table compares the Company's other operating
expenses included in noninterest expenses for the three months
ended March 31, 2021, December 31, 2020 and March 31, 2020.
OTHER OPERATING
EXPENSES
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
For the three
months ended
|
|
|
31-Mar-21
|
|
31-Dec-20
|
|
31-Mar-20
|
Bank franchise
tax
|
$
|
257
|
$
|
237
|
$
|
237
|
Stationery,
printing and supplies
|
|
168
|
|
138
|
|
169
|
Marketing
expense
|
|
89
|
|
89
|
|
96
|
Credit
expense
|
|
157
|
|
114
|
|
178
|
Outside vendor
fees
|
|
182
|
|
146
|
|
237
|
Other
expenses
|
|
739
|
|
726
|
|
603
|
Total other operating
expenses
|
$
|
1,592
|
$
|
1,450
|
$
|
1,520
|
Income Taxes
Income tax expense was $1.7
million for the first quarter of 2021, compared with income
tax expense of $1.3 million and
$264,000 for the fourth quarter of
2020 and first quarter of 2020, respectively. The effective tax
rate for the first quarter of 2021 was 20.5% compared with 19.6%
for the fourth quarter of 2020 and 15.7% for the first quarter of
2020. The increase in the effective tax rate in the first quarter
of 2021 compared with the two comparative periods in 2020 was the
result of a higher deduction related to stock option exercises in
2020.
FINANCIAL CONDITION
Total assets were $1.699 billion
at March 31, 2021 and increased
$54.1 million, or 3.3%, when compared
with December 31, 2020. Total
loans, excluding PCI loans, were $1.203
billion at March 31, 2021,
increasing $20.4 million, or 1.7%,
from year end 2020. The March 31,
2021 loan total includes $67.7
million in PPP loans, net of fees. PPP loans, net of fees,
were $49.3 million at December 31, 2020. Total PCI loans were
$22.5 million at March 31, 2020 versus $24.0 million at December
31, 2020.
At March 31, 2021, there were
$44.5 million in loans under COVID-19
related payment relief. The Company had provided aggregate COVID-19
related payment relief on loans totaling $192.6 million through March 31, 2021. PCI loans comprised
$13.2 million of this total at
March 31, 2021. As of March 31, 2021 regular payments have resumed on
$148.1 million of these loans, of
which PCI comprised $11.8 million.
Through March 31, 2021, the Company
had re-extended this payment relief on $57.6
million of these loans, $2.0
million of which were within the PCI portfolio. At
March 31, 2021, $16.1 million in loans were in first time payment
relief status.
Loans, net of fees that the Bank originated under the PPP were
$67.7 million at March 31, 2021 compared with $49.3 million at December
31, 2020 and were $83.5
million at June 30, 2020
during the peak of PPP activity. All of these balances are included
in commercial loans. As a result of the economic conditions
that existed during 2020 and early 2021, commercial loans,
excluding PPP loans, declined by $4.0
million from December 31, 2020
and $26.5 million since March 31, 2020. Commercial real estate loans, the
largest category of loans at $504.8
million, or 42.0% of gross loans outstanding at March 31, 2021 increased $30.0 million during the first quarter of 2021.
This category increased $94.4
million, or 23.0%, from March 31,
2020 to March 31, 2021.
Construction and land development loans, totaling $161.8 million, decreased by $20.5 million, or 11.2%, during the first quarter
of 2021 but grew $12.0 million, or
8.0%, year over year. Residential 1 – 4 family loans declined
during the first quarter of 2021 by $12.9
million and ended the period at $184.3 million, or 15.3% of the portfolio. This
category declined by $35.4 million
from March 31, 2020 when it was
$219.7 million and 20.4% of the
portfolio, 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 March 31,
2021, December 31, 2020 and
March 31, 2020.
LOANS (excluding
PCI loans)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
31-Mar-21
|
|
31-Dec-20
|
|
31-Mar-20
|
|
|
|
|
Amount
|
% of
Loans
|
|
|
Amount
|
% of
Loans
|
|
Amount
|
% of
Loans
|
|
Mortgage loans on
real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4
family
|
$
|
184,286
|
15.32
|
%
|
$
|
197,228
|
16.68
|
%
|
$
|
219,735
|
20.36
|
%
|
|
Commercial
|
|
504,846
|
41.98
|
|
|
474,856
|
40.16
|
|
|
410,438
|
38.03
|
|
|
Construction and land
development
|
|
161,825
|
13.45
|
|
|
182,277
|
15.42
|
|
|
149,833
|
13.88
|
|
|
Second
mortgages
|
|
6,526
|
0.54
|
|
|
6,360
|
0.54
|
|
|
5,954
|
0.55
|
|
|
Multifamily
|
|
87,624
|
7.29
|
|
|
78,158
|
6.61
|
|
|
76,206
|
7.06
|
|
|
Agriculture
|
|
7,947
|
0.66
|
|
|
6,662
|
0.56
|
|
|
7,038
|
0.65
|
|
|
Total real estate
loans
|
|
953,054
|
79.24
|
|
|
945,541
|
79.97
|
|
|
869,204
|
80.53
|
|
Commercial
loans
|
|
239,782
|
19.94
|
|
|
225,386
|
19.06
|
|
|
198,544
|
18.40
|
|
Consumer installment
loans
|
|
8,595
|
0.71
|
|
|
9,996
|
0.85
|
|
|
10,446
|
0.97
|
|
All other
loans
|
|
1,292
|
0.11
|
|
|
1,439
|
0.12
|
|
|
1,035
|
0.10
|
|
|
Gross
loans
|
|
1,202,723
|
100.00
|
%
|
|
1,182,362
|
100.00
|
%
|
|
1,079,229
|
100.00
|
%
|
Allowance for loan
losses
|
|
(10,828)
|
|
|
|
(12,340)
|
|
|
|
(11,819)
|
|
|
Loans, net of
unearned income
|
$
|
1,191,895
|
|
|
$
|
1,170,022
|
|
|
$
|
1,067,410
|
|
|
The Company's securities portfolio, excluding restricted equity
securities, was $293.4 million at
March 31, 2021 and increased
$874,000 during the first quarter of
2021 and $66.0 million since
March 31, 2020. U.S. Treasury issues
decreased by $15.7 million during the
first quarter of 2021 as excess liquidity was invested short term
in very liquid and low risk instruments during the fourth quarter
of 2020 and deployed in longer term securities during the first
quarter of 2021. U.S. Government agencies increased $10.3 million during the first quarter of 2021
and were $36.1 million at
March 31, 2021. Asset backed
securities, consisting of student loan pools 97% guaranteed by the
U.S. Government, increased $9.2
million during the first quarter of 2021 and were
$46.7 million at March 31, 2021. State, county and municipal
securities, the largest investment category totaling $144.9 million at March
31, 2021, decreased by $2.0
million during the first quarter of 2021. Corporate
securities were $25.6 million at
March 31, 2021.
The Company had cash and cash equivalents of $95.4 million at March 31,
2021 compared with $63.2
million at year end 2020, an increase of $32.2 million. The majority of this category
growth, $29.2 million, occurred in
interest bearing bank balances, which were $74.3 million at March 31,
2021, as large amounts of liquidity have been funneled into
the banking system through the facilitation of PPP loans by the
banking industry and stimulus checks issued by the U.S. Treasury
under the Coronavirus Aid, Relief, and Economic Security Act (the
"CARES Act").
The following table shows the composition of the Company's
securities portfolio, excluding equity securities, restricted, at
March 31, 2021, December 31, 2020 and March 31, 2020.
SECURITIES
PORTFOLIO
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
31-Mar-21
|
|
31-Dec-20
|
|
31-Mar-20
|
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
Securities
Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
issue
|
$
|
7,805
|
$
|
7,804
|
$
|
23,500
|
$
|
23,499
|
$
|
7,497
|
$
|
7,500
|
U.S. Government
agencies
|
|
36,178
|
|
36,123
|
|
25,880
|
|
25,853
|
|
21,452
|
|
20,804
|
State, county, and
municipal
|
|
120,720
|
|
124,611
|
|
118,612
|
|
125,720
|
|
98,168
|
|
102,189
|
Mortgage backed
securities
|
|
31,144
|
|
32,274
|
|
30,434
|
|
32,189
|
|
45,118
|
|
46,997
|
Asset backed
securities
|
|
45,842
|
|
46,712
|
|
36,841
|
|
37,488
|
|
13,568
|
|
12,926
|
Corporate
|
|
25,144
|
|
25,602
|
|
26,136
|
|
26,598
|
|
12,388
|
|
12,295
|
Total securities
available for sale
|
$
|
266,833
|
$
|
273,126
|
$
|
261,403
|
$
|
271,347
|
$
|
198,191
|
$
|
202,711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31-Mar-21
|
|
31-Dec-20
|
|
31-Mar-20
|
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
Securities Held to
Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government
agencies
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
State, county, and
municipal
|
|
20,271
|
|
21,190
|
|
21,176
|
|
22,257
|
|
24,649
|
|
25,485
|
Total securities held
to maturity
|
$
|
20,271
|
|
21,190
|
$
|
21,176
|
|
22,257
|
$
|
24,649
|
|
25,485
|
Interest bearing deposits at March 31,
2021 were $1.105 billion, an
increase of $5.6 million, or 0.5%,
from December 31, 2020. Interest
bearing checking accounts of $261.5
million grew by $21.9 million,
or 9.1%, during the first quarter of 2021 and $95.4 million, or 57.4%, year over year. Money
market deposit accounts were $171.9
million at March 31, 2021 and
grew $17.4 million, or 11.3%, during
the first quarter of 2021 and $48.5
million, or 39.3%, year over year. Savings accounts totaled
$137.5 million at March 31, 2021 and grew $13.1 million, or 10.6%, during the first quarter
of 2021. Strong growth in these non-maturity categories for the
year has allowed the Bank to react to lower interest rates through
proactive repricing in certificates of deposit, the highest costing
deposit category. As a result, there has been a decline in
time deposits less than or equal to $250,000, which decreased by $30.5 million, or 6.7%, in the first quarter of
2021 and were $422.4 million at
March 31, 2021.Year over year, time
deposits less than or equal to $250,000 declined $84.4
million, or 16.6%. Time deposits over $250,000 declined $16.4
million in the first quarter of 2021 and were $112.0 million at March
31, 2021. Year over year, time deposits over $250,000 declined by $24.9
million, or 18.2%. Time deposit balances combined were 48.3%
of interest bearing deposits at March 31,
2021 and 37.1% of all deposit balances. This is a decline
from 52.9% of interest bearing balances and 41.6% of all deposit
balances at December 31, 2020. At
March 31, 2020, time deposit balances
were 62.3% of interest bearing deposits and 52.7% of all deposit
balances. The growth in interest bearing checking accounts, money
market accounts and savings accounts, as well as in noninterest
bearing checking, was $87.5 million
during the first quarter of 2021 and $327.5
million since March 31, 2020.
A portion of this growth was associated with the PPP loans
originated during 2020 and 2021 and stimulus checks issued under
the CARES Act, as well as previously postponed business activity
that resulted from the COVID-19 stay-at-home orders.
The following table compares the mix of interest bearing
deposits at March 31, 2021,
December 31, 2020 and March 31, 2020.
INTEREST BEARING
DEPOSITS
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
31-Mar-21
|
|
31-Dec-20
|
|
31-Mar-20
|
Interest Bearing
Checking
|
$
|
261,536
|
$
|
239,628
|
$
|
166,163
|
MMDA
|
|
171,932
|
|
154,503
|
|
123,455
|
Savings
|
|
137,507
|
|
124,384
|
|
99,394
|
Time deposits less
than or equal to $250,000
|
|
422,372
|
|
452,885
|
|
506,739
|
Time deposits over
$250,000
|
|
112,038
|
|
128,400
|
|
136,980
|
Total interest
bearing deposits
|
$
|
1,105,385
|
$
|
1,099,800
|
$
|
1,032,731
|
FHLB borrowings were $67.7 million
at March 31, 2021 compared with
$57.8 million at December 31, 2020 and $58.3 million at March 31,
2020. The stable level of FHLB borrowings during 2020 and
into 2021 has been due to the FHLB swiftly responding to the
March 16, 2020 rate cut of 1.50% to
the discount rate by repricing advances downward to ensure low cost
liquidity for the banking system. As a result, the Bank has found
this level of borrowing to be a stable source of low cost funding.
The average rate paid on FHLB borrowings was 1.26% during the first
quarter of 2021. There were no Federal funds purchased at
March 31, 2021 or December 31, 2020.
Shareholders' equity was $172.5
million at March 31, 2021, or
10.2% of total assets, compared with $169.7
million, or 10.3% of total assets, at December 31, 2020. The Company repurchased
299,700 shares of common stock at a total cost of $2.1 million during 2020 and 31,100 share for a
total cost of $217,000 during the
first quarter of 2021.
Asset Quality – excluding PCI loans
Nonperforming loans were $3.5
million at March 31, 2021, a
decrease of $27,000 from
December 31, 2020. Nonperforming loans declined $1.6 million year over year. Total non-performing
assets totaled $7.8 million at
March 31, 2021 compared with
$7.9 million at December 31, 2020. Non-performing assets declined
$1.8 million, or 19.0%, year over
year. There were net charge-offs of $112,000 in the first quarter of
2021.
The allowance for loan losses equaled 309.6% of nonaccrual loans
at March 31, 2021 compared with
351.4% at December 31, 2020. The
ratio of nonperforming assets to loans and other real estate owned
(OREO) was 0.65% at March 31, 2021
compared with 0.67% at December 31,
2020.
The allowance for loan losses to total loans was 0.90% at
March 31, 2021 compared with 1.04% at
December 31, 2020 and 1.10% at
March 31, 2020. The volume of PPP
loans originated since the second quarter of 2020 impacted the
ratio. PPP loans, net of fees, were $67.7 million at March 31,
2021 and $49.3 million at
December 31, 2020. These loans are
fully guaranteed by the SBA in accordance with the CARES Act;
therefore, no allowance is required. The Company monitors and
adjusts the allowance for loan losses based on loans requiring a
reserve. The allowance for loan losses to total loans
excluding the PPP loans would have reflected a level of coverage
0.95% at March 31, 2021 and 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)
|
|
2021
|
|
2020
|
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
Allowance for loan
losses:
|
|
|
|
|
|
|
|
|
|
|
Beginning of
period
|
$
|
12,340
|
$
|
12,328
|
$
|
12,238
|
$
|
11,819
|
$
|
8,429
|
Provision for
(recovery of) loan losses
|
|
(1,400)
|
|
-
|
|
-
|
|
900
|
|
3,300
|
Net (charge-offs)
recoveries
|
|
(112)
|
|
12
|
|
90
|
|
(481)
|
|
90
|
End of
period
|
$
|
10,828
|
$
|
12,340
|
$
|
12,328
|
$
|
12,238
|
$
|
11,819
|
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)
|
|
2021
|
|
2020
|
|
|
|
31-Mar-21
|
|
31-Dec-20
|
|
30-Sep-20
|
|
30-Jun-20
|
|
31-Mar-20
|
|
Nonaccrual
loans
|
$
|
3,496
|
$
|
3,512
|
$
|
4,214
|
$
|
4,225
|
$
|
5,172
|
|
Loans past due 90
days and accruing interest
|
|
33
|
|
45
|
|
-
|
|
-
|
|
-
|
|
Total nonperforming
loans
|
|
3,529
|
|
3,557
|
|
4,214
|
|
4,225
|
|
5,172
|
|
Other real estate
owned
|
|
4,313
|
|
4,361
|
|
4,416
|
|
4,486
|
|
4,506
|
|
Total nonperforming
assets
|
$
|
7,842
|
$
|
7,918
|
$
|
8,630
|
$
|
8,711
|
$
|
9,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses to loans
|
|
0.90
|
%
|
1.04
|
%
|
1.05
|
%
|
1.05
|
%
|
1.10
|
%
|
Allowance for loan
losses to nonaccrual loans
|
|
309.64
|
|
351.37
|
|
292.55
|
|
289.66
|
|
228.52
|
|
Nonperforming assets
to loans and other real estate
|
|
0.65
|
|
0.67
|
|
0.73
|
|
0.74
|
|
0.89
|
|
Net
charge-offs/(recoveries) for quarter to average loans,
annualized
|
|
0.04
|
%
|
0.00
|
%
|
(0.03)
|
%
|
0.17
|
%
|
(0.03)
|
%
|
A further breakout of nonaccrual loans, excluding PCI loans, at,
March 31, 2021, December 31, 2020, and March 31, 2020 is below.
NONACCRUAL LOANS
(excluding PCI loans)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
31-Mar-21
|
|
31-Dec-20
|
|
31-Mar-20
|
Mortgage loans on
real estate:
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4
family
|
|
$
|
1,422
|
|
$
|
1,357
|
|
$
|
1,456
|
|
Commercial
|
|
|
711
|
|
|
730
|
|
|
657
|
|
Construction and land
development
|
|
|
5
|
|
|
44
|
|
|
1,778
|
|
Agriculture
|
|
|
45
|
|
|
45
|
|
|
-
|
|
Total real estate
loans
|
|
$
|
2,183
|
|
$
|
2,176
|
|
$
|
3,891
|
Commercial
loans
|
|
|
1,301
|
|
|
1,316
|
|
|
1,270
|
Consumer installment
loans
|
|
|
12
|
|
|
20
|
|
|
11
|
|
Gross
loans
|
|
$
|
3,496
|
|
$
|
3,512
|
|
$
|
5,172
|
On April 7, 2021, the Company sold
an item included in other real estate owned at March 31, 2021 in the amount of $3.8 million. The full effects of disposition
will be reported in second quarter results.
Capital Requirements
The Bank's ratio of total risk-based capital was 13.8% at
March 31, 2021 compared with 13.6% at
December 31, 2020. The tier 1
risk-based capital ratio was 13.0% at March
31, 2021 and 12.7% at December 31,
2020. The Bank's tier 1 leverage ratio was 10.4% at
March 31, 2021 and 10.1% at
December 31, 2020. All
capital ratios exceed regulatory minimums to be considered well
capitalized. BASEL III
introduced the common equity tier 1 capital ratio, which was 13.0%
at March 31, 2021 and 12.7% at
December 31, 2020.
Earnings Conference Call and Webcast
The Company will host a conference call for interested parties
on Friday, April 30, 2021, at 11:00
a.m. Eastern Time to discuss the financial results for the
first quarter of 2021. The public is invited to listen to this
conference call by dialing 866-374-8379 at least five minutes
prior to the call. Interested parties may also listen to this
conference call through the internet by accessing the "Corporate
Overview – Corporate Profile" page of the Company's internet site
at www.cbtrustcorp.com.
A replay of the conference call will be available from 12:00
noon Eastern Time on April 30, 2021, until 9:00
a.m. Eastern Time on May 21,
2021. The replay will be available by dialing 877-344-7529
and entering access code 10154925 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, 2020 and other reports filed from
time to time by the Company with the Securities and Exchange
Commission. This press release speaks only as of its date, and the
Company disclaims any duty to update the information in it.
COMMUNITY BANKERS
TRUST CORPORATION
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
UNAUDITED
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
31-Mar-21
|
|
31-Dec-20
|
|
31-Mar-20
|
Assets
|
|
|
|
|
|
|
Cash and due from
banks
|
$
|
20,836
|
$
|
17,845
|
$
|
15,406
|
Interest bearing bank
deposits
|
|
74,337
|
|
45,118
|
|
14,960
|
Federal funds
sold
|
|
234
|
|
222
|
|
-
|
Total cash and
cash equivalents
|
|
95,407
|
|
63,185
|
|
30,366
|
|
|
|
|
|
|
|
Securities available
for sale, at fair value
|
|
273,126
|
|
271,347
|
|
202,711
|
Securities held to
maturity, at cost
|
|
20,271
|
|
21,176
|
|
24,649
|
Equity securities,
restricted, at cost
|
|
8,049
|
|
8,436
|
|
8,458
|
Total
securities
|
|
301,446
|
|
300,959
|
|
235,818
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
-
|
|
-
|
|
2,470
|
|
|
|
|
|
|
|
Loans
|
|
1,202,723
|
|
1,182,362
|
|
1,079,229
|
Purchased credit
impaired (PCI) loans
|
|
22,465
|
|
24,040
|
|
30,275
|
Allowance for loan
losses
|
|
(10,828)
|
|
(12,340)
|
|
(11,819)
|
Allowance for loan
losses – PCI loans
|
|
(156)
|
|
(156)
|
|
(156)
|
Net
loans
|
|
1,214,204
|
|
1,193,906
|
|
1,097,529
|
|
|
|
|
|
|
|
Bank premises and
equipment, net
|
|
27,582
|
|
27,897
|
|
29,065
|
Bank premises and
equipment held for sale
|
|
1,507
|
|
1,507
|
|
1,589
|
Right-of-use-lease
assets
|
|
5,292
|
|
5,530
|
|
6,234
|
Other real estate
owned
|
|
4,313
|
|
4,361
|
|
4,506
|
Bank owned life
insurance
|
|
30,195
|
|
30,029
|
|
29,514
|
Other
assets
|
|
18,862
|
|
17,384
|
|
16,449
|
Total
assets
|
$
|
1,698,808
|
$
|
1,644,758
|
$
|
1,453,540
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Noninterest
bearing
|
$
|
333,910
|
$
|
298,901
|
$
|
188,327
|
Interest
bearing
|
|
1,105,385
|
|
1,099,800
|
|
1,032,731
|
Total
deposits
|
|
1,439,295
|
|
1,398,701
|
|
1,221,058
|
|
|
|
|
|
|
|
Federal Home Loan
Bank borrowings
|
|
67,667
|
|
57,833
|
|
58,333
|
Trust preferred
capital notes
|
|
4,124
|
|
4,124
|
|
4,124
|
Lease
liabilities
|
|
5,545
|
|
5,787
|
|
6,513
|
Other
liabilities
|
|
9,701
|
|
8,659
|
|
8,044
|
Total
liabilities
|
|
1,526,332
|
|
1,475,104
|
|
1,298,072
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
Common stock
(200,000,000 shares authorized $0.01 par value; 22,219,926,
22,220,929 and 22,317,420, shares issued and outstanding,
respectively)
|
|
222
|
|
222
|
|
223
|
Additional paid in
capital
|
|
150,038
|
|
149,822
|
|
150,219
|
Retained
earnings
|
|
18,729
|
|
13,419
|
|
2,856
|
Accumulated other
comprehensive income
|
|
3,487
|
|
6,191
|
|
2,170
|
Total
shareholders' equity
|
|
172,476
|
|
169,654
|
|
155,468
|
Total liabilities
and shareholders' equity
|
$
|
1,698,808
|
$
|
1,644,758
|
$
|
1,453,540
|
|
|
|
|
|
|
|
COMMUNITY BANKERS
TRUST CORPORATION
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
Three months
ended
|
|
|
31-Mar-21
|
|
31-Dec-20
|
|
30-Sep-20
|
|
30-Jun-20
|
|
31-Mar-20
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
13,150
|
$
|
13,622
|
$
|
12,760
|
$
|
13,012
|
$
|
13,086
|
Interest and fees on
PCI loans
|
|
856
|
|
932
|
|
962
|
|
1,062
|
|
1,097
|
Interest on deposits
in other banks
|
|
60
|
|
107
|
|
121
|
|
41
|
|
69
|
Interest and
dividends on securities
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
1,467
|
|
1,373
|
|
1,362
|
|
1,287
|
|
1,351
|
Nontaxable
|
|
327
|
|
337
|
|
344
|
|
349
|
|
343
|
Total interest and
dividend income
|
|
15,860
|
|
16,371
|
|
15,549
|
|
15,751
|
|
15,946
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
1,565
|
|
2,151
|
|
2,614
|
|
3,182
|
|
3,419
|
Interest on borrowed
funds
|
|
217
|
|
221
|
|
222
|
|
209
|
|
289
|
Total interest
expense
|
|
1,782
|
|
2,372
|
|
2,836
|
|
3,391
|
|
3,708
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
14,078
|
|
13,999
|
|
12,713
|
|
12,360
|
|
12,238
|
Provision for
(recovery of) loan losses
|
|
(1,400)
|
|
-
|
|
-
|
|
900
|
|
3,300
|
Net interest
income after provision for (recovery of) loan
losses
|
|
15,478
|
|
13,999
|
|
12,713
|
|
11,460
|
|
8,938
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
Service charges and
fees
|
|
679
|
|
777
|
|
613
|
|
532
|
|
672
|
Gain (loss) on
securities transactions, net
|
|
16
|
|
3
|
|
78
|
|
242
|
|
(39)
|
Gain on sale of other
loans
|
|
-
|
|
-
|
|
-
|
|
-
|
|
11
|
Income on bank owned
life insurance
|
|
166
|
|
171
|
|
171
|
|
173
|
|
174
|
Mortgage loan
income
|
|
320
|
|
294
|
|
228
|
|
373
|
|
221
|
Other
|
|
447
|
|
280
|
|
382
|
|
296
|
|
296
|
Total noninterest
income
|
|
1,628
|
|
1,525
|
|
1,472
|
|
1,616
|
|
1,335
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
5,208
|
|
5,332
|
|
5,041
|
|
4,613
|
|
5,152
|
Occupancy
expenses
|
|
836
|
|
758
|
|
815
|
|
778
|
|
827
|
Equipment
expenses
|
|
288
|
|
320
|
|
330
|
|
345
|
|
372
|
FDIC
assessment
|
|
212
|
|
184
|
|
174
|
|
156
|
|
125
|
Data processing
fees
|
|
608
|
|
632
|
|
656
|
|
573
|
|
592
|
Other real estate
expenses, net
|
|
11
|
|
63
|
|
87
|
|
(4)
|
|
6
|
Other operating
expenses
|
|
1,592
|
|
1,450
|
|
1,423
|
|
1,412
|
|
1,520
|
Total noninterest
expense
|
|
8,755
|
|
8,739
|
|
8,526
|
|
7,873
|
|
8,594
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
8,351
|
|
6,785
|
|
5,659
|
|
5,203
|
|
1,679
|
Income tax
expense
|
|
1,708
|
|
1,328
|
|
1,143
|
|
1,043
|
|
264
|
Net
income
|
$
|
6,643
|
$
|
5,457
|
$
|
4,516
|
$
|
4,160
|
$
|
1,415
|
COMMUNITY BANKERS
TRUST CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
MARGIN ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2021
|
|
|
Three months ended
December 31, 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
|
$
|
1,191,395
|
|
$
|
13,150
|
|
4.48
|
%
|
|
$
|
1,173,154
|
|
$
|
13,622
|
|
4.61
|
%
|
|
PCI loans,
including fees
|
|
23,226
|
|
|
856
|
|
14.75
|
|
|
|
26,059
|
|
|
932
|
|
14.00
|
|
|
Total
loans
|
|
1,214,621
|
|
|
14,006
|
|
4.68
|
|
|
|
1,199,213
|
|
|
14,554
|
|
4.81
|
|
|
Interest bearing bank
balances
|
|
70,192
|
|
|
60
|
|
0.34
|
|
|
|
88,002
|
|
|
107
|
|
0.48
|
|
|
Federal funds
sold
|
|
198
|
|
|
-
|
|
0.07
|
|
|
|
211
|
|
|
-
|
|
0.07
|
|
|
Securities
(taxable)
|
|
234,938
|
|
|
1,467
|
|
2.50
|
|
|
|
210,404
|
|
|
1,373
|
|
2.61
|
|
|
Securities (tax
exempt)(1)
|
|
49,158
|
|
|
414
|
|
3.37
|
|
|
|
49,745
|
|
|
426
|
|
3.42
|
|
|
Total
earning assets
|
|
1,569,107
|
|
|
15,947
|
|
4.12
|
|
|
|
1,547,575
|
|
|
16,460
|
|
4.22
|
|
|
Allowance for loan
losses
|
|
(12,459)
|
|
|
|
|
|
|
|
|
(12,487)
|
|
|
|
|
|
|
|
Non-earning
assets
|
|
105,946
|
|
|
|
|
|
|
|
|
116,875
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,662,594
|
|
|
|
|
|
|
|
$
|
1,651,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - interest
bearing
|
$
|
250,888
|
|
$
|
138
|
|
0.22
|
|
|
$
|
222,224
|
|
$
|
123
|
|
0.22
|
|
|
Savings and money
market
|
|
291,779
|
|
|
183
|
|
0.25
|
|
|
|
282,327
|
|
|
194
|
|
0.27
|
|
|
Time
deposits
|
|
550,297
|
|
|
1,244
|
|
0.92
|
|
|
|
604,955
|
|
|
1,834
|
|
1.20
|
|
|
Total
interest bearing deposits
|
|
1,092,964
|
|
|
1,565
|
|
0.58
|
|
|
|
1,109,506
|
|
|
2,151
|
|
0.77
|
|
|
Short-term
borrowings
|
|
439
|
|
|
-
|
|
0.20
|
|
|
|
111
|
|
|
-
|
|
0.20
|
|
|
FHLB and other
borrowings
|
|
69,174
|
|
|
217
|
|
1.26
|
|
|
|
66,036
|
|
|
221
|
|
1.31
|
|
|
Total interest
bearing liabilities
|
|
1,162,577
|
|
|
1,782
|
|
0.62
|
|
|
|
1,175,653
|
|
|
2,372
|
|
0.80
|
|
|
Noninterest bearing
deposits
|
|
314,979
|
|
|
|
|
|
|
|
|
290,774
|
|
|
|
|
|
|
|
Other
liabilities
|
|
13,208
|
|
|
|
|
|
|
|
|
12,775
|
|
|
|
|
|
|
|
Total
liabilities
|
|
1,490,764
|
|
|
|
|
|
|
|
|
1,479,202
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
171,830
|
|
|
|
|
|
|
|
|
172,761
|
|
|
|
|
|
|
|
Total
liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders' equity
|
$
|
1,662,594
|
|
|
|
|
|
|
|
$
|
1,651,963
|
|
|
|
|
|
|
|
Net interest
earnings
|
|
|
|
$
|
14,165
|
|
|
|
|
|
|
|
$
|
14,088
|
|
|
|
|
Interest
spread
|
|
|
|
|
|
|
3.50
|
%
|
|
|
|
|
|
|
|
3.42
|
%
|
|
Net interest
margin
|
|
|
|
|
|
|
3.66
|
%
|
|
|
|
|
|
|
|
3.61
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
|
|
|
87
|
|
|
|
|
|
|
|
|
89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
March 31, 2021
|
|
|
Three months ended
March 31, 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
|
$
|
1,191,395
|
|
$
|
13,150
|
|
4.48
|
%
|
|
$
|
1,065,268
|
|
$
|
13,086
|
|
4.93
|
%
|
|
PCI loans, including
fees
|
|
23,226
|
|
|
856
|
|
14.75
|
|
|
|
31,311
|
|
|
1,097
|
|
13.87
|
|
|
Total
loans
|
|
1,214,621
|
|
|
14,006
|
|
4.68
|
|
|
|
1,096,579
|
|
|
14,183
|
|
5.19
|
|
|
Interest bearing bank
balances
|
|
70,192
|
|
|
60
|
|
0.34
|
|
|
|
16,455
|
|
|
69
|
|
1.68
|
|
|
Federal funds
sold
|
|
198
|
|
|
-
|
|
0.07
|
|
|
|
141
|
|
|
-
|
|
1.06
|
|
|
Securities
(taxable)
|
|
234,938
|
|
|
1,467
|
|
2.50
|
|
|
|
182,340
|
|
|
1,351
|
|
2.96
|
|
|
Securities (tax
exempt)(1)
|
|
49,158
|
|
|
414
|
|
3.37
|
|
|
|
49,391
|
|
|
435
|
|
3.52
|
|
|
Total
earning assets
|
|
1,569,107
|
|
|
15,947
|
|
4.12
|
|
|
|
1,344,906
|
|
|
16,038
|
|
4.78
|
|
|
Allowance for loan
losses
|
|
(12,459)
|
|
|
|
|
|
|
|
|
(8,621)
|
|
|
|
|
|
|
|
Non-earning
assets
|
|
105,946
|
|
|
|
|
|
|
|
|
105,540
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,662,594
|
|
|
|
|
|
|
|
$
|
1,441,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - interest
bearing
|
$
|
250,888
|
|
$
|
138
|
|
0.22
|
|
|
$
|
170,279
|
|
$
|
94
|
|
0.22
|
|
|
Savings and money
market
|
|
291,779
|
|
|
183
|
|
0.25
|
|
|
|
219,661
|
|
|
280
|
|
0.51
|
|
|
Time
deposits
|
|
550,297
|
|
|
1,244
|
|
0.92
|
|
|
|
632,664
|
|
|
3,045
|
|
1.93
|
|
|
Total
interest bearing deposits
|
|
1,092,964
|
|
|
1,565
|
|
0.58
|
|
|
|
1,022,604
|
|
|
3,419
|
|
1.34
|
|
|
Short-term
borrowings
|
|
439
|
|
|
-
|
|
0.20
|
|
|
|
4,185
|
|
|
23
|
|
2.20
|
|
|
FHLB and other
borrowings
|
|
69,174
|
|
|
217
|
|
1.26
|
|
|
|
66,796
|
|
|
266
|
|
1.58
|
|
|
Total interest
bearing liabilities
|
|
1,162,577
|
|
|
1,782
|
|
0.62
|
|
|
|
1,093,585
|
|
|
3,708
|
|
1.36
|
|
|
Noninterest bearing
deposits
|
|
314,979
|
|
|
|
|
|
|
|
|
175,871
|
|
|
|
|
|
|
|
Other
liabilities
|
|
13,208
|
|
|
|
|
|
|
|
|
14,184
|
|
|
|
|
|
|
|
Total
liabilities
|
|
1,490,764
|
|
|
|
|
|
|
|
|
1,283,640
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
171,830
|
|
|
|
|
|
|
|
|
158,185
|
|
|
|
|
|
|
|
Total
liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders' equity
|
$
|
1,662,594
|
|
|
|
|
|
|
|
|
1,441,825
|
|
|
|
|
|
|
|
Net interest
earnings
|
|
|
|
$
|
14,165
|
|
|
|
|
$
|
|
|
$
|
12,330
|
|
|
|
|
Interest
spread
|
|
|
|
|
|
|
3.50
|
%
|
|
|
|
|
|
|
|
3.42
|
%
|
|
Net interest
margin
|
|
|
|
|
|
|
3.66
|
%
|
|
|
|
|
|
|
|
3.68
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
|
|
|
87
|
|
|
|
|
|
|
|
$
|
92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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-first-quarter-2021-301281088.html
SOURCE Community Bankers Trust Corporation