RICHMOND, Va., Oct. 29, 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 September 30, 2021.
FINANCIAL HIGHLIGHTS
- Net income was $6.5 million for
the quarter ended September 30, 2021
compared with net income of $5.4
million in the second quarter of 2021 and net income of
$4.5 million in the third quarter of
2020.
- As a result of continued improvement in asset quality the
allowance for loan losses reflected a reserve recovery of
$1.250 million.
- Net interest income was $14.8
million for the third quarter of 2021, a linked quarter
increase of $298,000, or 2.1%.
- Interest on deposits declined $85,000 on a linked quarter basis, and the
associated cost of funds declined from 0.48% to 0.43%.
- Merger related expenses of $147,000 were incurred in the third quarter.
- Diluted earnings per share were $0.28 for the third quarter of 2021 compared with
$0.24 for the second quarter of 2021
and $0.20 for the third quarter of
2020.
- Return on average assets (ROA) was 1.48% for the third quarter
of 2021 compared with 1.26% for the second quarter of 2021 and
1.12% for the third quarter of 2020. For the first nine months, ROA
was 1.44% in 2021 and 0.87% in 2020.
- Return on average equity (ROE) was 14.28% for the third quarter
of 2021 compared with 12.30% for the second quarter of 2021 and
11.04% for the third quarter of 2020. For the first nine months,
ROE was 14.00% in 2021 and 8.39% in 2020.
OPERATING HIGHLIGHTS
- Loans, excluding purchased credit impaired (PCI) loans, grew
$39.1 million, or 3.3%, during the
third quarter of 2021. Loans grew $53.3
million, or 4.5%, year over year.
- Nonperforming assets were $4.0
million at September 30, 2021,
$4.6 million lower than one year
earlier. The ratio of nonperforming assets to loans and other real
estate was 0.33% at September 30,
2021 compared with 0.75% at December
31, 2020 and 0.73% one year earlier.
- Deposits grew $10.0 million, or
0.7%, during the third quarter of 2021, and grew $129.5 million, or 9.5%, year over year.
- Noninterest bearing deposits grew $64.0
million, or 22.7%, year over year.
- Net interest margin was 3.52% in the third quarter of 2021
compared with 3.58% in the second quarter of 2021 and 3.35% in the
third quarter of 2020. The net interest margin was 3.58% for the
first nine months of 2021 compared with 3.48% for the same period
in 2020.
- PPP loan balances, net of fees, decreased $19.2 million during the third quarter of 2021
and were $32.8 million at
September 30, 2021 compared with
$49.3 million at December 31, 2020 and $85.1 million at September
30, 2020.
- Total securities, $402.9 million
at September 30, 2021, increased
$53.3 million during the third
quarter and cash and equivalents declined $74.6 million as excess liquidity was invested
into higher yielding assets.
On June 2, 2021, the Company
entered into a merger agreement with United Bankshares, Inc.
("United"), the parent company of United Bank. Under the
merger agreement, United will acquire 100% of the outstanding
shares of the Company's common stock in exchange for shares of
United's common stock. The exchange ratio will be fixed at
0.3173 of United's shares for each share of the Company. The
merger is expected to close in the fourth quarter of 2021, subject
to satisfaction of customary closing conditions, including receipt
of regulatory approvals and approval by the Company's
shareholders. Upon closing, the Company will merge into
United, and Essex Bank will merge into United Bank, with United and
United Bank being the surviving entities.
MANAGEMENT COMMENTS
Rex L. Smith, III, President and
Chief Executive Officer, stated, "The results of the quarter and
the fundamentals behind the results are impressive. Loan
growth was better than expected for this time of year at
$39.1 million, and the pipeline
remains strong. Net interest income continued to increase
year over year as noninterest bearing deposits grew 22.7%.
Additionally, overall asset quality is exceptional as nonperforming
assets are at the lowest level in 10 years. "
Smith added, "We are excited about our pending merger with
United Bank, which is on track to close in the fourth quarter this
year. Becoming a part of the largest regional bank
headquartered in Virginia will add
enhanced products and delivery services to help us grow stronger in
our markets and more value than previously possible to our
customers and shareholders."
RESULTS OF OPERATIONS
Overview
Linked Quarter Basis
Net income was $6.5 million for the third quarter of 2021
compared with net income of $5.4
million in the second quarter of 2021. Earnings per share
were $0.29 basic and $0.28 fully diluted for the third quarter of 2021
and $0.24 basic and fully diluted for
the second quarter of 2021. Provision for loan losses reflected a
credit of $1.250 million for the
third quarter of 2021 compared with no provision in the second
quarter of 2021. Continued improvement in credit quality was the
driver behind the recapture in the third quarter of previous
provision for loan losses. There was a more stable economic climate
in the first nine months of 2021 compared with each quarter in
2020. Net interest income increased by $298,000, or 2.1%, in the third quarter compared
with the second quarter of 2021. Net interest income was positively
affected by a continuation of decreasing costs in interest expense,
which declined $81,000 on a linked
quarter basis. Noninterest income decreased $80,000 on a linked quarter basis while
noninterest expenses decreased $82,000. Income tax expense increased
$428,000 in the third quarter of 2021
compared with the prior quarter. Details of the linked quarter
financial performance of the Company are presented below.
Year-over-Year Third Quarter
Net income in the third
quarter of 2021 increased $2.0
million when compared to the same period in 2020. Net
income was $6.5 million in the third
quarter of 2021, with earnings per share of $0.29 basic and $0.28 fully diluted. Net income for the
third quarter of 2020 was $4.5
million, with earnings per share of $0.20 basic and fully diluted. There was an
increase of $2.1 million in net
interest income, primarily from both a decline in interest expense
of $1.4 million in the third quarter
of 2021 compared with the same period one year earlier and an
increase in interest income of $732,000 over the same comparison period.
Provision for loan losses decreased $1.250
million year over year as the Company recaptured in the
third quarter of 2021 previously recorded provision. Offsetting
these increases to net income were an increase of $584,000 in noninterest expenses and a decrease
of $91,000 in noninterest income.
There was also an increase of $625,000 in income tax expense year-over-year.
Details of the year-over-year financial performance of the Company
are presented below.
Year-over-Year Nine Months
Net income of $18.6 million for the first nine months of 2021
reflects an increase of $8.5 million,
or 84.5%, over net income of $10.1
million for the same period in 2020. Provision for loan
losses reflects a reserve recovery of $2.650
million for the first nine months of 2021 compared with a
provision of $4.2 million during the
early stage of the COVID-19 pandemic for the first nine months of
2020. Interest expense declined $5.1
million and was $4.8 million
for the first nine months of 2021 compared with $9.9 million for the first nine months of 2020.
Smaller increases were in interest and dividend income, which
increased $959,000, and in
noninterest income, which increased $47,000 in the first nine months of 2021 compared
with the same period in 2020. Offsetting these increases to net
income were an increase of $2.1
million in noninterest expenses, which were $27.1 million for the first nine months of 2021,
and $2.4 million greater expense in
income taxes, which were $4.8 million
for the first nine months of 2021.
The following table presents summary income statements for the
three months ended September 30,
2021, June 30, 2021 and
September 30, 2020 and the nine
months ended September 30, 2021 and
September 30, 2020.
SUMMARY INCOME
STATEMENT
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
For the nine
months ended
|
|
|
30-Sep-21
|
|
30-Jun-21
|
|
30-Sep-20
|
|
30-Sep-21
|
|
30-Sep-20
|
Interest
income
|
$
|
16,281
|
$
|
16,064
|
$
|
15,549
|
$
|
48,205
|
$
|
47,246
|
Interest
expense
|
|
1,486
|
|
1,567
|
|
2,836
|
|
4,835
|
|
9,935
|
Net interest
income
|
|
14,795
|
|
14,497
|
|
12,713
|
|
43,370
|
|
37,311
|
(Recovery of)
provision for loan losses
|
|
(1,250)
|
|
-
|
|
-
|
|
(2,650)
|
|
4,200
|
Net interest income
after (recovery of ) provision for
loan losses
|
|
16,045
|
|
14,497
|
|
12,713
|
|
46,020
|
|
33,111
|
Noninterest
income
|
|
1,381
|
|
1,461
|
|
1,472
|
|
4,470
|
|
4,423
|
Noninterest
expense
|
|
9,110
|
|
9,192
|
|
8,526
|
|
27,057
|
|
24,993
|
Income before income
taxes
|
|
8,316
|
|
6,766
|
|
5,659
|
|
23,433
|
|
12,541
|
Income tax
expense
|
|
1,768
|
|
1,340
|
|
1,143
|
|
4,816
|
|
2,450
|
Net income
|
$
|
6,548
|
$
|
5,426
|
$
|
4,516
|
$
|
18,617
|
$
|
10,091
|
|
|
|
|
|
|
|
|
|
|
|
EPS Basic
|
$
|
0.29
|
$
|
0.24
|
$
|
0.20
|
$
|
0.83
|
$
|
0.45
|
EPS
Diluted
|
$
|
0.28
|
$
|
0.24
|
$
|
0.20
|
$
|
0.82
|
$
|
0.45
|
Fully Diluted share
count
|
|
23,002
|
|
22,733
|
|
22,503
|
|
22,717
|
|
22,534
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets, annualized
|
|
1.48%
|
|
1.26%
|
|
1.12%
|
|
1.44%
|
|
0.87%
|
Return on average
equity, annualized
|
|
14.28%
|
|
12.30%
|
|
11.04%
|
|
14.00%
|
|
8.39%
|
Net Interest Income
Linked Quarter Basis
Net interest income was
$14.8 million for the quarter ended
September 30, 2021. This was a linked
quarter increase of $298,000, or
2.1%. Interest and dividend income on a linked quarter basis
increased $217,000, or 1.4%, to
$16.3 million for the third quarter
of 2021. Interest income with respect to loans, excluding PCI
loans, increased $245,000, or 1.9%,
during the third quarter of 2021 when compared with the second
quarter of 2021. Interest income on PCI loans decreased
$76,000 on a linked quarter basis as
the average balance declined $3.0
million. Excess liquidity was invested in the third quarter,
and the average balance of taxable and tax-exempt securities
increased by $63.0 million, or 19.5%,
over the prior quarter. This resulted in a linked quarter increase
of $43,000 in interest and dividends
on securities.
The yield on loans for the third quarter of 2021 was 4.43%
compared with 4.39% in the second quarter of 2021. The yield on all
loans for the third quarter of 2021 was 4.60% and 4.58% for the
second quarter of 2021. Interest income on securities was
$2.1 million in the third quarter of
2021 compared with $2.0 million in
the second quarter of 2021. Interest bearing bank balances income
was $59,000 in the third quarter of
2021 compared with $54,000 in the
second quarter of 2021.
Interest income on securities on a tax-equivalent basis equaled
$2.2 million for the third quarter of
2021 and $2.1 million for the second
quarter of 2021. The tax-equivalent yield on the securities
portfolio was 2.25% in the third quarter of 2021 compared with
2.63% in the second quarter of 2021. As a result of these changes
in rate and volume, the yield on earning assets decreased from
3.97% in the second quarter of 2021 to 3.87% in the third quarter
of 2021.
Interest expense of $1.5 million
in the third quarter of 2021 was a decrease of $81,000, or 5.2%, on a linked quarter basis.
Interest on deposits decreased $85,000, or 6.3%. The cost of interest bearing
deposits decreased from 0.48% in the second quarter of 2021 to
0.43% in the third quarter of 2021. The Company's cost of interest
bearing liabilities of 0.48% in the third quarter of 2021 was a
decrease of four basis points from the prior quarter when the cost
of interest bearing liabilities was 0.52%.
With the changes in net interest income noted above, the
tax-equivalent net interest margin decreased on a linked quarter
basis and was 3.52% in the third quarter of 2021 compared with
3.58% in the second quarter of 2021. The interest spread was 3.39%
for the current quarter compared with 3.45% in the prior quarter.
The Company also examined the net interest margin without the
effects of PPP net fees, interest income and average balances.
Excluding these PPP related items from the net interest margin
calculation would have resulted in a margin of 3.39% in the third
quarter of 2021 compared with the actual margin of 3.52%. The
same exclusion of PPP related items would have resulted in a margin
of 3.54% in the second quarter of 2021 compared with the actual
margin of 3.58%. The yield on the loan portfolio would have been
4.28% in the third quarter of 2021 when excluding the PPP related
items versus the actual yield of 4.43%. The yield on the loan
portfolio would have been 4.38% in the second quarter of 2021 when
excluding the PPP related items versus the actual yield of 4.39%.
The yield on earning assets would have been 3.75% for the third
quarter of 2021 without the PPP related items as opposed to the
actual yield of 3.87%. For the second quarter of 2021, the
yield on earning assets would have been 3.94% without the PPP
related items compared to the actual yield of 3.97%.
Year-over-Year Third Quarter
Net interest income
increased $2.1 million, or 16.4%,
from the third quarter of 2020 to the third quarter of 2021. Net
interest income was $14.8 million in
the third quarter of 2021 compared with $12.7 million for the same period in 2020.
Interest and dividend income increased $732,000, or 4.7%, over this time period. In the
third quarter of 2021, $785,000 in
PPP net origination fees were recognized as income versus
$331,000 in the same period of 2020.
Interest and fees on loans were $13.4
million in the third quarter of 2021, an increase of
$681,000, or 5.3%, over the same
period in 2020. Interest and fees on PCI loans decreased by
$254,000 and were $708,000 in the third quarter of 2021. Securities
income was $2.1 million in the third
quarter of 2021, an increase of $367,000 over the same period in 2020. Income on
interest on deposits in other banks decreased by $62,000 year over year.
The average balance of the loan portfolio, excluding PCI loans,
increased by $34.3 million year over
year and averaged $1.204 billion for
the third quarter of 2021. The average balance of the PCI portfolio
declined $11.7 million during the
year-over-year comparison period. The average balance of securities
increased by $136.9 million in the
third quarter of 2021 compared with the same period one year
earlier. The average balance of total earning assets increased
$162.2 million, or 10.7%, from the
third quarter of 2020 to the third quarter of 2021. The yield on
earning assets decreased from 4.09% in the third quarter of 2020 to
3.87% in the third quarter of 2021. The change in yield on earning
assets was the culmination of the decrease in the yield on
securities, from 2.89% in the third quarter of 2020 to 2.25% in the
third quarter of 2021 and in the yield on interest bearing bank
balances, from 0.68% to 0.32% year over year. The yield on total
loans increased year over year, from 4.55% in the third quarter of
2020, to 4.60% for the same period in 2021.
Interest expense decreased $1.4
million, or 47.6%, when comparing the third quarter of 2021
and the third quarter of 2020. Interest expense on deposits
decreased $1.4 million, or 51.7%, as
the cost declined from 0.96% in the third quarter of 2020 to 0.43%
for the same period in 2021. The average balance of interest
bearing deposits increased $74.5
million, or 6.9%. This growth was from non-maturity deposit
sources. First, there was an increase of $82.8 million, or 41.2%, in the average balance
of interest bearing checking accounts, which averaged $283.8 million in the third quarter of 2021.
Additionally, there was an increase of $63.6
million in the average balance of savings and money market
accounts from the third quarter of 2020 to the same period in 2021.
Offsetting these increases was a decrease of $71.9 million in the average balance of time
deposits, to $540.9 million for the
third quarter of 2021. FHLB and other borrowings costs were stable
over the time frame and were 1.22% in the third quarter of 2021
compared with 1.19% for the same period in 2020. All of the above
contributed to the reduction of interest expense for interest
bearing liabilities by $1.4 million
despite an increase of $72.4 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 third quarter of 2021 by a
year-over-year average balance increase of $63.3 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 0.97% in the third quarter of
2020 to 0.48% in the third quarter of 2021.
The tax-equivalent net interest margin increased 17 basis
points, from 3.35% in the third quarter of 2020 to 3.52% in the
third quarter of 2021. Likewise, the interest spread increased from
3.12% to 3.39% over the same time period. The increase in the
margin was precipitated by a decrease of 22 basis points in the
yield on earning assets compared with a greater decline of 49 basis
points in the cost of interest bearing liabilities applied against
growth of $162.2 million, or 10.7%,
in earning assets. As noted in the linked quarter discussion above,
without the effects of PPP related items, the net interest margin
would have been 3.39% in the third quarter of 2021. Without the
effects of PPP related items, the net interest margin would have
been 3.39% in the third quarter of 2020.
Year-over-Year Nine Months
Net interest income was
$43.4 million for the nine months of
2021. This is an increase of $6.1
million, or 16.2%, from net interest income of $37.3 million for the first nine months of 2020.
Interest and dividend income increased by $959,000 over this time frame. Interest and
dividend income was impacted by volume increases offset by a
decline in yield. First, there was an increase of $929,000, or 2.4%, in interest and fees on loans,
which increased as a result of growth of $73.0 million, or 6.5%, in the average balance of
loans in 2021 over 2020. The yield on loans declined from 4.59% for
the first nine months of 2020 to 4.43% for the same period in
2021. Interest and fees on PCI loans declined by $773,000, or 24.8%. The yield on the PCI
portfolio was 15.54% for the first nine months of 2021 compared
with 13.71% for the first nine months of 2020. Interest and
dividends on securities increased by $861,000 in the first nine months of 2021
compared with the same period in 2020. The average balance of the
securities portfolio increased $91.0
million, or 37.9%, and the yield declined from 2.95% for the
first nine months of 2020 to 2.48% for the same period in 2021. The
yield on earning assets was 3.98% for the first nine months of
2021, a decline of 40 basis points from 4.38% in the first nine
months of 2020. The yield on total loans, which includes PCI loans
and PPP loans, declined from 4.83% for the first nine months of
2020 compared with 4.62% for the same period in 2021.
Interest expense of $4.8 million
for the first nine months of 2021 was a decrease of $5.1 million, or 51.3%, from interest expense of
$9.9 million for the first nine
months of 2020. The cost of interest bearing liabilities decreased
over this time frame from 1.17% for the first nine months of 2020
to 0.54% for the same period in 2021. Interest on deposits
decreased $5.0 million due to a
decline in the rate paid from 1.16% for the first nine months of
2020 to 0.50% for the first nine months of 2021. The average
balance of interest bearing liabilities increased over this time
frame by $67.3 million, or 6.0%.
Short term borrowing expense decreased by $24,000, and the cost of FHLB and other
borrowings decreased by $35,000, or
5.0%, as the rate paid decreased from 1.30% for the first nine
months of 2020 to 1.23% for the first nine months of 2021.
The changes noted to interest income and interest expense led to
an increase in the net interest margin from 3.48% for the first
nine months of 2020 to 3.58% for the same period in 2021. The
interest spread also increased over this time frame from 3.21% in
2020 to 3.44% in 2021. Excluding PPP related items from the net
interest margin calculation would have resulted in a margin of
3.50% for the first nine months of 2021 compared with the actual
margin of 3.58%. Excluding PPP related items from the net interest
margin calculation for the first nine months of 2020 would have
resulted in a margin of 3.49% for the first nine months of 2020
compared with the actual margin of 3.48%. The yield on the
loan portfolio for the first nine months of 2021 would have been
4.36% excluding PPP related items versus the actual yield of 4.43%.
The yield on the loan portfolio for the first nine months of 2020
would have been 4.68% excluding PPP related items versus the actual
yield of 4.59%. The yield on earning assets for the first nine
months of 2021 would have been 3.91% without PPP related items as
opposed to the actual yield of 3.98%. The yield on earning assets
for the first nine months of 2020 would have been 4.44% without PPP
related items as opposed to the actual yield of 4.38%.
The following table compares the Company's net interest margin,
on a tax-equivalent basis, for the three months ended September 30, 2021, June
30, 2021 and September 30,
2020 and the nine months ended September 30 2021 and September 30, 2020.
NET INTEREST
MARGIN
|
|
|
|
|
|
|
|
|
|
(Unaudited)
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
|
30-Sep-21
|
|
|
30-Jun-21
|
|
|
30-Sep-20
|
|
Average interest
earning assets
|
$
|
1,679,564
|
|
$
|
1,633,672
|
|
$
|
1,517,374
|
|
Interest
income
|
$
|
16,281
|
|
$
|
16,064
|
|
$
|
15,549
|
|
Interest income -
tax-equivalent
|
$
|
16,374
|
|
$
|
16,153
|
|
$
|
15,640
|
|
Yield on interest
earning assets
|
|
3.87
|
%
|
|
3.97
|
%
|
|
4.09
|
%
|
Average interest
bearing liabilities
|
$
|
1,228,482
|
|
$
|
1,199,036
|
|
$
|
1,156,089
|
|
Interest
expense
|
$
|
1,486
|
|
$
|
1,567
|
|
$
|
2,836
|
|
Cost of interest
bearing liabilities
|
|
0.48
|
%
|
|
0.52
|
%
|
|
0.97
|
%
|
Net interest
income
|
$
|
14,795
|
|
$
|
14,497
|
|
$
|
12,713
|
|
Net interest income -
tax-equivalent
|
$
|
14,888
|
|
$
|
14,586
|
|
$
|
12,804
|
|
Interest
spread
|
|
3.39
|
%
|
|
3.45
|
%
|
|
3.12
|
%
|
Net interest
margin
|
|
3.52
|
%
|
|
3.58
|
%
|
|
3.35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended
|
|
|
|
|
|
30-Sep-21
|
|
|
30-Sep-20
|
|
|
|
|
Average interest
earning assets
|
$
|
1,627,852
|
|
$
|
1,443,925
|
|
|
|
|
Interest
income
|
$
|
48,205
|
|
$
|
47,246
|
|
|
|
|
Interest income -
tax-equivalent
|
$
|
48,474
|
|
$
|
47,521
|
|
|
|
|
Yield on interest
earning assets
|
|
3.98
|
%
|
|
4.38
|
%
|
|
|
|
Average interest
bearing liabilities
|
$
|
1,196,940
|
|
$
|
1,129,625
|
|
|
|
|
Interest
expense
|
$
|
4,835
|
|
$
|
9,935
|
|
|
|
|
Cost of interest
bearing liabilities
|
|
0.54
|
%
|
|
1.17
|
%
|
|
|
|
Net interest
income
|
$
|
43,370
|
|
$
|
37,311
|
|
|
|
|
Net interest income -
tax-equivalent
|
$
|
43,639
|
|
$
|
37,586
|
|
|
|
|
Interest
spread
|
|
3.44
|
%
|
|
3.21
|
%
|
|
|
|
Net interest
margin
|
|
3.58
|
%
|
|
3.48
|
%
|
|
|
|
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 $1.250 million of previously recorded provision
for loan losses in the third quarter of 2021 compared with no
provision in either of the second quarter of 2021 or the third
quarter of 2020. The recovery of $2.650
million of provision for loan losses for the first nine
months of 2021 compares with a provision of $4.2 million for the first nine months of 2020.
The recovery of provision recorded in the first and third
quarters of 2021 was due to continued improvement in the quality of
the loan portfolio and an overall improvement in the risks
associated with the potential economic impact of the COVID-19
pandemic, which continued through the third quarter of 2021.
Beginning in the first quarter of 2020, management performs a
review of each loan within the portfolio to identify, and monitor
on a going forward basis, those borrowers that management believed
to be possibly impacted by the COVID affected economy. Loans
identified with increased risk are aggregated by loan type. During
the first and second 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 a provision for loan losses of
$4.2 million for the first half 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. The loan portfolio has exhibited a trend over the
last year of lower nonaccrual loans, lower other real estate loans,
very low charge-offs and a gradual improvement in risk grades as
previously COVID deferred loan relationships return to their
original payment terms.
With respect to the PCI portfolio, no provision was recorded
during the first nine months of 2021 or 2020 due to the stable
nature of the portfolio's performance. Additional discussion of
loan quality is presented below.
Noninterest Income
Linked Quarter Basis
Noninterest income was
$1.4 million for the third quarter of
2021, an $80,000 decrease compared
with the second quarter of 2021. Other noninterest income
decreased $138,000 on a linked
quarter basis and was $297,000 for
the third quarter of 2021. Gain (loss) on securities transactions,
net improved by $21,000 and were net
losses of $7,000 in the third quarter
of 2021 compared with net losses of $28,000 in the second quarter of 2021. Service
charges and fees of $671,000 in the
third quarter of 2021 increased $20,000 on a linked quarter basis. Mortgage loan
income increased $20,000 on a linked
quarter basis and was $255,000 in the
third quarter of 2021 compared with $235,000 in the prior quarter. Income on bank
owned life insurance was $165,000 in
the third quarter of 2021 and $168,000 in the second quarter of 2021.
Year-over-Year Third Quarter
Noninterest income of
$1.4 million in the third quarter of
2021 was a decrease of $91,000, or
6.2%, compared with the third quarter of 2020. Other
noninterest income declined by $85,000 year over year and was $297,000 in the third quarter of 2021. Gains
(loss) on securities transactions decreased $85,000 year over year as securities losses of
$7,000 were recognized in the third
quarter of 2021 compared with gains of $78,000 in the third quarter of 2020. Offsetting
these decreases to noninterest income was an increase of
$58,000 in service charges and fees,
which were $671,000 in the third
quarter of 2021. Additionally, mortgage loan income of $255,000 in the third quarter of 2021 was an
increase of $27,000 year over
year.
Year-over-Year Nine Months
Noninterest income was
$4.5 million for the first nine
months of 2021, an increase of $47,000, or 1.1%, over noninterest income of
$4.4 million for the first nine
months of 2020. Other noninterest income was $1.2 million for the first nine months of 2021,
an increase of $205,000 over the same
period in 2020. Service charges and fees of $2.0 million for the first nine months of 2021
was an increase of $184,000 over the
same period in 2020. Gain (loss) on securities transactions, net
exhibited the greatest decline, $300,000, and reflected a net loss of
$19,000 recognized for the first nine
months of 2021 compared with gains of $281,000 for the same period in 2020. Income on
bank owned life insurance was $499,000 for the first nine months of 2021, a
decrease of $19,000 from the same
period in 2020. Mortgage loan income was $810,000 for the first nine months of 2021, a
decrease of $12,000 over the same
period in 2020.
Noninterest Expenses
Linked Quarter Basis
Noninterest expenses totaled
$9.1 million for the third quarter of
2021, as compared with $9.2 million
for the second quarter of 2021, a decrease of $82,000, or 0.9%. Other operating expenses
decreased $546,000, from $2.3 million in the second quarter of 2021 to
$1.8 million in the third quarter of
2021. The decrease was partially due to $570,000 in merger related expenses from legal,
professional and director fees during the second quarter of 2021.
Also, there was an assessment of the fair value of a low income
housing tax credit investment that resulted in a downward
adjustment of $154,000 in the second
quarter. Data processing fees of $673,000 in the third quarter of 2021 was a
decrease of $68,000 over the linked
quarter. Equipment expenses were $275,000 in the third quarter of 2021 and
decreased $42,000 on a linked quarter
basis. Offsetting these decreases to noninterest expenses were a
number of categories that increased on a linked quarter basis.
Other real estate expenses, net, increased $436,000 on a linked quarter basis and were
$5,000 for the third quarter of 2021.
Other real estate expenses, net reflected a credit of $431,000 in the second quarter of 2021 and
reflected gains on the disposition of other real estate owned in
the second quarter of 2021. Salaries and employee expenses of
$5.4 million in the third quarter of
2021 was an increase of $56,000, or
1.0%, on a linked quarter basis. FDIC assessment of $161,000 in the third quarter of 2021 was a
linked quarter increase of $53,000,
as there were retroactive rate adjustments by the FDIC in the
second quarter of 2021. Occupancy expenses increased by
$29,000, from $761,000 in the second quarter of 2021 to
$790,000 in the third quarter of
2021.
Year-over-Year Third Quarter
Noninterest expenses of
$9.1 million for the third quarter of
2021 was an increase of $584,000, or
6.8%, from noninterest expenses of $8.5
million for the third quarter of 2020. The largest component
of the increase was an increase in other operating expenses, which
increased by $375,000, from
$1.4 million in the third quarter of
2020, to $1.8 million for the same
period in 2021. Salaries and employee benefits of $5.4 million in the third quarter of 2021
increased $367,000, or 7.3%, over the
third quarter of 2020. This increase is comprised mainly of
$146,000 in merger related expenses
incurred during the third quarter of 2021, combined with increases
of $71,000 in professional fees,
$459,000 in marketing expense and
$50,000 in telephone and data
expenses. Data processing fees of $673,000 in the third quarter of 2021 reflected
an increase of $17,000 year over
year. Offsetting these increases was a year-over-year decline of
$82,000 in other real estate
expenses, net, which were $5,000 in
the third quarter of 2021. Equipment expenses were $275,000 in the third quarter of 2021 compared
with $330,000 for the same period in
2020, a decrease of $55,000, or
16.7%. Occupancy expenses, $790,000
in the third quarter of 2021, declined $25,000 from the same period in 2020. FDIC
assessment, which was $161,000 in the
third quarter of 2021, declined by $13,000 year over year.
Year-over-Year Nine Months
Noninterest expenses were
$27.1 million for the nine months
ended September 30, 2021, an increase
of $2.1 million, or 8.3%, compared
with the same period in 2020. Other operating expenses were
$5.7 million and increased by
$1.4 million, or 31.7%, in the first
nine months of 2021 compared with the same period in 2020. Part of
the increase is attributed to $717,000 in merger related expenses, $154,000 for the low income housing tax credit
investment adjustment, a $201,000
increase in legal fees, and a $114,000 increase in professional fees incurred
during the second quarter of 2021. Salaries and employee benefits
of $16.0 million were an increase of
$1.2 million, or 7.8%, for the first
nine months of 2021 over the same period in 2020. Data processing
fees, which were $2.0 million,
increased by $201,000, or 11.0%, for
the first nine months of 2021 over the same period in 2020. Other
real estate expenses, net, decreased $504,000 as a result of gains recognized in the
second quarter of 2021 on the disposition of other real estate
owned. Also offsetting these increases were a decline of
$167,000 in equipment expenses, which
was $880,000 for the first nine
months of 2021, and a decrease of $33,000 in occupancy expenses, which was
$2.4 million for the first nine
months of 2021.
The following table compares the Company's other operating
expenses included in noninterest expenses for the three months
ended September 30, 2021,
June 30, 2021, December 31, 2020 and September 30, 2020.
OTHER OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
(Unaudited)
(Dollars in
thousands)
|
|
For the three
months ended
|
|
|
30-Sep-21
|
|
30-Jun-21
|
|
31-Dec-20
|
|
30-Sep-20
|
Bank franchise
tax
|
$
|
257
|
$
|
257
|
$
|
237
|
$
|
237
|
Stationery,
printing and supplies
|
|
170
|
|
152
|
|
138
|
|
167
|
Marketing
expense
|
|
138
|
|
140
|
|
89
|
|
79
|
Credit
expense
|
|
73
|
|
92
|
|
114
|
|
71
|
Outside vendor
fees
|
|
220
|
|
110
|
|
146
|
|
177
|
Other
expenses
|
|
940
|
|
1,593
|
|
726
|
|
692
|
Total other operating
expenses
|
$
|
1,798
|
$
|
2,344
|
$
|
1,450
|
$
|
1,423
|
Income Taxes
Income tax expense was $1.8
million for the third quarter of 2021 compared with income
tax expense of $1.3 million and
$1.1 million for the second quarter
of 2021 and the third quarter of 2020, respectively. The effective
tax rate was 21.3% for the third quarter of 2021, 19.8% for the
second quarter of 2021 and 20.2% for the third quarter of 2020.
Income tax expense was $4.8
million for the first nine months of 2021 compared with
$2.5 million for the same period in
2020. The effective tax rate was 20.6% for the first nine months of
2021 compared with an effective tax rate of 19.5% for the first
nine months of 2020.
FINANCIAL CONDITION
Total assets were $1.771 billion
at September 30, 2021 and increased
$126.5 million, or 7.7%, when
compared with December 31,
2020. Total loans, excluding PCI loans, were $1.231 billion at September 30, 2021, increasing $48.6 million, or 4.1%, from year end 2020. Total
PCI loans were $15.7 million at
September 30, 2021 versus
$24.0 million at December 31, 2020.
At September 30, 2021, there were
13 loans with an aggregate outstanding balance of $15.8 million under COVID-19 related payment
relief. Two PCI loans comprised $1.3
million of this total.
Loans, net of fees that the Bank originated under the PPP were
$32.8 million at September 30, 2021, $52.0
million at June 30, 2021,
$67.7 million at March 31, 2021, $49.3
million at December 31, 2020
and $85.1 million at September 30, 2020. All of these balances have
been included in commercial loans. As a result of the economic
conditions that existed during 2020 and the first nine months of
2021, commercial loans balances, excluding PPP loans, have been
stagnant and declined by $2.1 million
since December 31, 2020 and
$1.7 million since September 30, 2020. Commercial real estate loans,
the largest category of loans at $542.4
million, or 44.1% of gross loans outstanding at September 30, 2021, increased $67.6 million, or 14.2%, since December 31, 2020. Construction and land
development loans were $200.9 million
at September 30, 2021 and represent
16.3% of the loan portfolio. This category has grown
$18.6 million during the first nine
months of 2021. Residential 1 – 4 family loans declined during the
first nine of 2021 by $19.1 million,
or 9.7%, and ended the period at $178.1
million, or 14.5% of the portfolio.
The following table shows the composition of the Company's loan
portfolio, excluding PCI loans, at September
30, 2021, June 30, 2021,
December 31, 2020 and September 30, 2020.
LOANS (excluding
PCI loans)
(Unaudited)
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-Sep-21
|
|
30-Jun-21
|
|
31-Dec-20
|
|
30-Sep-20
|
|
|
|
|
Amount
|
% of
Loans
|
|
|
Amount
|
% of
Loans
|
|
|
Amount
|
% of
Loans
|
|
|
Amount
|
% of
Loans
|
|
Mortgage loans on
real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4
family
|
$
|
178,099
|
14.47
|
%
|
$
|
182,929
|
15.35
|
%
|
$
|
197,228
|
16.68
|
%
|
$
|
204,366
|
17.35
|
%
|
|
Commercial
|
|
542,418
|
44.06
|
|
|
506,951
|
42.53
|
|
|
474,856
|
40.16
|
|
|
452,677
|
38.44
|
|
|
Construction and land
development
|
|
200,878
|
16.32
|
|
|
180,215
|
15.12
|
|
|
182,277
|
15.42
|
|
|
159,766
|
13.57
|
|
|
Second
mortgages
|
|
7,078
|
0.57
|
|
|
6,893
|
0.58
|
|
|
6,360
|
0.54
|
|
|
6,488
|
0.55
|
|
|
Multifamily
|
|
80,245
|
6.52
|
|
|
72,918
|
6.12
|
|
|
78,158
|
6.61
|
|
|
77,787
|
6.60
|
|
|
Agriculture
|
|
7,748
|
0.63
|
|
|
7,841
|
0.66
|
|
|
6,662
|
0.56
|
|
|
7,138
|
0.61
|
|
|
Total real estate
loans
|
|
1,016,466
|
82.57
|
|
|
957,747
|
80.36
|
|
|
945,541
|
79.97
|
|
|
908,222
|
77.12
|
|
Commercial
loans
|
|
206,801
|
16.80
|
|
|
224,437
|
18.83
|
|
|
225,386
|
19.06
|
|
|
257,362
|
21.85
|
|
Consumer installment
loans
|
|
6,841
|
0.56
|
|
|
8,452
|
0.71
|
|
|
9,996
|
0.85
|
|
|
10,606
|
0.90
|
|
All other
loans
|
|
873
|
0.07
|
|
|
1,205
|
0.10
|
|
|
1,439
|
0.12
|
|
|
1,519
|
0.13
|
|
|
Gross
loans
|
|
1,230,981
|
100.00
|
%
|
|
1,191,841
|
100.00
|
%
|
|
1,182,362
|
100.00
|
%
|
|
1,177,709
|
100.00
|
%
|
Allowance for loan
losses
|
|
(9,929)
|
|
|
|
(11,006)
|
|
|
|
(12,340)
|
|
|
|
(12,328)
|
|
|
Loans, net of
unearned income
|
$
|
1,221,052
|
|
|
$
|
1,180,835
|
|
|
$
|
1,170,022
|
|
|
$
|
1,165,381
|
|
|
The Company's securities portfolio, excluding restricted equity
securities, was $394.9 million at
September 30, 2021 and increased
$102.4 million, or 35.0%, during the
first nine months of 2021 and $138.3
million, or 53.8%, since September
30, 2020. U.S. Treasury issues decreased by $3.6 million during the first nine months of
2021. U.S. Government agencies increased $27.0 million during the first nine months of
2021 and were $52.8 million at
September 30, 2021. State, county and
municipal securities, the largest investment category totaling
$212.3 million at September 30, 2021, increased by $65.4 million during the first nine months of
2021. Asset backed securities, consisting of student loan pools 97%
guaranteed by the U.S. Government, increased $9.3 million during the first three quarters of
2021 and were $46.7 million at
September 30, 2021. Mortgage backed
securities were $38.9 million at
September 30, 2021 and grew by
$6.7 million during 2021. Corporate
securities were $24.2 million at
September 30, 2021.
The Company had cash and cash equivalents of $49.1 million at September
30, 2021 compared with $63.2
million at year end 2020. This category grew to $123.6 million at June 30,
2021 but decreased during the third quarter of 2021 as funds
were invested into higher earning loans and securities. Interest
bearing bank balances were $23.6
million at September 30, 2021
compared with $45.1 million at
December 31, 2021 and peaked at
$102.0 million at June 30, 2021.
The following table shows the composition of the Company's
securities portfolio, excluding equity securities, restricted, at
September 30, 2021, December 31, 2020 and September 30, 2020.
SECURITIES
PORTFOLIO
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
(Dollars in
thousands)
|
|
30-Sep-21
|
|
31-Dec-20
|
|
30-Sep-20
|
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
Securities
Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
issue
|
$
|
19,896
|
|
19,880
|
$
|
23,500
|
$
|
23,499
|
$
|
12,500
|
$
|
12,500
|
U.S. Government
agencies
|
|
52,948
|
|
52,808
|
|
25,880
|
|
25,853
|
|
19,942
|
|
19,745
|
State, county, and
municipal
|
|
187,999
|
|
193,291
|
|
118,612
|
|
125,720
|
|
109,976
|
|
116,534
|
Mortgage backed
securities
|
|
37,885
|
|
38,908
|
|
30,434
|
|
32,189
|
|
28,086
|
|
29,951
|
Asset backed
securities
|
|
45,951
|
|
46,729
|
|
36,841
|
|
37,488
|
|
28,748
|
|
28,986
|
Corporate
|
|
23,749
|
|
24,229
|
|
26,136
|
|
26,598
|
|
25,454
|
|
25,937
|
Total securities
available for sale
|
$
|
368,428
|
|
375,845
|
$
|
261,403
|
$
|
271,347
|
$
|
224,706
|
$
|
233,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-Sep-21
|
|
31-Dec-20
|
|
30-Sep-20
|
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
Securities Held to
Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State, county, and
municipal
|
$
|
19,052
|
$
|
19,844
|
$
|
21,176
|
$
|
22,257
|
$
|
23,026
|
$
|
24,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities held
to maturity
|
$
|
19,052
|
|
19,844
|
$
|
21,176
|
|
22,257
|
$
|
23,026
|
|
24,118
|
Interest bearing deposits at September
30, 2021 were $1.153 billion,
an increase of $53.3 million, or
4.8%, from December 31, 2020.
Interest bearing checking accounts of $276.2
million grew by $36.6 million,
or 15.3%, during the first nine months of 2021 and $75.1 million, or 37.3%, year over year. The
balance of interest bearing checking accounts decreased by
$8.8 million during the third quarter
of 2021. Money market deposit accounts were $184.8 million at September 30, 2021 and grew $30.2 million, or 19.6%, during the first nine
months of 2021 and $26.2 million, or
16.5%, year over year. Savings accounts totaled $151.1 million at September 30, 2021 and grew $9.0 million, or 6.3%, during the third quarter
of 2021 and $26.7 million, or 21.5%,
during the first nine months 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, time
deposits less than or equal to $250,000 decreased by $27.8 million, or 6.1%, in the first nine months
of 2021 and were $425.1 million at
September 30, 2021.Year over year,
time deposits less than or equal to $250,000 declined $43.5
million, or 9.3%. Time deposits over $250,000 declined $12.5
million in the first nine months of 2021 and were
$115.9 million at September 30, 2021. Year over year, time deposits
over $250,000 declined by
$25.5 million, or 18.0%. Time deposit
balances combined were 46.9% of interest bearing deposits at
September 30, 2021 and 36.1% 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. The growth in interest bearing
checking accounts, money market accounts and savings accounts, as
well as in noninterest bearing checking accounts, was $140.4 million during the first nine months of
2021. A portion of this growth was associated with the PPP loans
originated during 2020 and 2021 and stimulus checks issued under
the CARES Act, as well as previously postponed business activity
that resulted from the COVID-19 stay-at-home orders.
The following table compares the mix of interest bearing
deposits at September 30, 2021,
June 30, 2021, December 31, 2020 and September 30, 2020.
INTEREST BEARING
DEPOSITS
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
30-Sep-21
|
|
30-Jun-21
|
|
31-Dec-20
|
|
30-Sep-20
|
Interest Bearing
Checking Accounts
|
$
|
276,222
|
$
|
285,044
|
$
|
239,628
|
$
|
201,121
|
|
|
|
|
|
|
|
|
|
MMDA
|
|
184,750
|
|
182,702
|
|
154,503
|
|
158,569
|
Savings
|
|
151,090
|
|
142,110
|
|
124,384
|
|
118,007
|
Time deposits less
than or equal to $250,000
|
|
425,072
|
|
425,837
|
|
452,885
|
|
468,549
|
Time deposits over
$250,000
|
|
115,947
|
|
113,423
|
|
128,400
|
|
141,417
|
Total interest
bearing deposits
|
$
|
1,153,081
|
$
|
1,149,116
|
$
|
1,099,800
|
$
|
1,087,663
|
FHLB borrowings were $67.3 million
at September 30, 2021 compared with
$57.8 million at December 31, 2020 and $68.0 million at September
30, 2020. The stable level of FHLB borrowings during 2020
and into 2021 has been due to the FHLB swiftly responding to the
March 16, 2020 rate cut of 1.50% to
the discount rate by repricing advances downward to ensure low cost
liquidity for the banking system. As a result, the Bank has found
this level of borrowing to be a stable source of low cost funding.
The average rate paid on FHLB borrowings was 1.23% during the first
nine months of 2021. There were Federal funds purchased of
$2.7 million at September 30, 2021 compared with no Federal funds
purchased at December 31, 2020.
Shareholders' equity was $184.3
million at September 30, 2021,
or 10.4% of total assets, compared with $169.7 million, or 10.3% of total assets, at
December 31, 2020.
Asset Quality – excluding PCI loans
Nonperforming loans were $3.8
million at September 30, 2021,
a decrease of $735,000 from
December 31, 2020. Nonperforming loans declined $444,000 year over year. Total non-performing
assets totaled $4.0 million at
September 30, 2021 compared with
$8.9 million at December 31, 2020. Non-performing assets declined
$4.6 million, or 53.4%, year over
year. On April 7, 2021, the Company
sold an item included in other real estate owned at March 31, 2021 in the amount of $3.8 million, and this sale was the primary
reason for the decline in non-performing assets. There were net
recoveries of $239,000 in the first
nine months of 2021.
The allowance for loan losses equaled 263.4% of nonaccrual loans
at September 30, 2021 compared with
276.7% at December 31, 2020. The
ratio of nonperforming assets to loans and other real estate owned
(OREO) was 0.33% at September 30,
2021 compared with 0.75% at December
31, 2020.
The allowance for loan losses to total loans was 0.81% at
September 30, 2021 compared with
1.04% at December 31, 2020 and 1.05%
at September 30, 2020. The volume of
PPP loans originated since the second quarter of 2020 impacted the
ratio. PPP loans, net of fees, were $32.8
million at September 30, 2021
and $49.3 million at December 31, 2020. When excluding PPP loans, the
allowance for loan losses to total loans would have been 0.83% and
1.09% at September 30, 2021 and
December 31, 2020, respectively.
These loans are fully guaranteed by the SBA in accordance with the
CARES Act; therefore, no allowance is required. The Company
monitors and adjusts the allowance for loan losses based on loans
requiring a reserve.
The following table reconciles the activity in the Company's
allowance for loan losses, by quarter, for the past five
quarters.
ALLOWANCE FOR LOAN
LOSSES
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
2021
|
|
|
2020
|
|
|
Third
|
|
Second
|
|
First
|
|
|
Fourth
|
|
Third
|
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
|
Quarter
|
|
Quarter
|
Allowance for loan
losses:
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of
period
|
$
|
11,006
|
$
|
10,828
|
$
|
12,340
|
|
$
|
12,328
|
$
|
12,238
|
Provision for loan
losses
|
|
(1,250)
|
|
-
|
|
(1,400)
|
|
|
-
|
|
-
|
Net (charge-offs)
recoveries
|
|
173
|
|
178
|
|
(112)
|
|
|
12
|
|
90
|
End of
period
|
$
|
9,929
|
$
|
11,006
|
$
|
10,828
|
|
$
|
12,340
|
$
|
12,328
|
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
|
|
|
|
30-Sep-21
|
|
30-Jun-21
|
|
|
31-Mar-21
|
|
|
31-Dec-20
|
|
30-Sep-20
|
|
|
Nonaccrual
loans
|
$
|
3,770
|
$
|
3,555
|
|
$
|
3,496
|
|
$
|
4,460
|
$
|
4,214
|
|
|
Loans past due 90
days and accruing interest
|
|
-
|
|
-
|
|
|
33
|
|
|
45
|
|
-
|
|
|
Total nonperforming
loans
|
|
3,770
|
|
3,555
|
|
|
3,529
|
|
|
4,505
|
|
4,214
|
|
|
Other real estate
owned
|
|
255
|
|
364
|
|
|
4,313
|
|
|
4,361
|
|
4,416
|
|
|
Total nonperforming
assets
|
$
|
4,025
|
$
|
3,919
|
|
$
|
7,842
|
|
$
|
8,866
|
$
|
8,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses to loans
|
|
0.81
|
%
|
0.92
|
%
|
|
0.90
|
%
|
|
1.04
|
%
|
1.05
|
%
|
|
Allowance for loan
losses to nonaccrual loans
|
|
263.37
|
|
309.59
|
|
|
309.73
|
|
|
276.68
|
|
292.55
|
|
|
Nonperforming assets
to loans and other real estate
|
|
0.33
|
|
0.33
|
|
|
0.65
|
|
|
0.75
|
|
0.73
|
|
|
Net
charge-offs/(recoveries) to average loans
|
|
(0.06)
|
%
|
(0.06)
|
%
|
|
0.04
|
%
|
|
0.03
|
%
|
0.04
|
%
|
|
A further breakout of nonaccrual loans, excluding PCI loans, at
September 30, 2021, June 30, 2021, December
31, 2020, and September 30,
2020 is below.
NONACCRUAL LOANS
(excluding PCI loans)
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-Sep-21
|
|
30-Jun-21
|
|
31-Dec-20
|
|
30-Sep-20
|
Mortgage loans on
real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4
family
|
|
$
|
1,168
|
|
$
|
1,316
|
|
$
|
1,357
|
|
$
|
1,338
|
|
Commercial
|
|
|
602
|
|
|
953
|
|
|
730
|
|
|
764
|
|
Construction and land
development
|
|
|
2
|
|
|
2
|
|
|
44
|
|
|
572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agriculture
|
|
|
-
|
|
|
-
|
|
|
45
|
|
|
51
|
|
Total real estate
loans
|
|
$
|
1,772
|
|
$
|
2,271
|
|
$
|
2,176
|
|
$
|
2,725
|
Commercial
loans
|
|
|
1,998
|
|
|
1,284
|
|
|
2,264
|
|
|
1,470
|
Consumer installment
loans
|
|
|
-
|
|
|
-
|
|
|
20
|
|
|
19
|
|
Gross
loans
|
|
$
|
3,770
|
|
$
|
3,555
|
|
$
|
4,460
|
|
$
|
4,214
|
Capital Requirements
The Bank's ratio of total risk-based capital was 13.7% at
September 30, 2021 compared with
13.6% at December 31, 2020. The
tier 1 risk-based capital ratio was 13.0% at September 30, 2021 and 12.7% at December 31, 2020. The Bank's tier 1 leverage
ratio was 10.3% at September 30, 2021
and 10.1% at December 31,
2020. All capital ratios exceed regulatory minimums to
be considered well capitalized. BASEL III introduced the common equity tier 1
capital ratio, which was 13.3% at September
30, 2021 and 12.7% at December 31,
2020.
Earnings Conference Call and Webcast
The Company will host a conference call for interested parties
on Friday, October 29, 2021, at 10:00
a.m. Eastern Time to discuss the financial results for the
third 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 October 29, 2021, until 9:00 a.m. Eastern Time on November 19, 2021. The replay will be available
by dialing 877-344-7529 and entering access code 10161610 or
through the internet by accessing the "Corporate Overview –
Corporate Profile" page of the Company's internet site at
www.cbtrustcorp.com.
About Community Bankers Trust Corporation and Essex
Bank
Community Bankers Trust Corporation is the holding company for
Essex Bank, a Virginia state bank
with 24 full-service offices, 18 of which are in Virginia and six of which are in
Maryland. The Bank also operates two loan production
offices.
Additional information on the Bank is available on the Bank's
website at www.essexbank.com. For information on Community
Bankers Trust Corporation, please visit its website at
www.cbtrustcorp.com.
Forward-Looking Statements
This release contains forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995,
that are subject to risks and uncertainties. These forward-looking
statements include, without limitation, statements with respect to
the Company's operations, performance, future strategy and goals.
Actual results may differ materially from those included in the
forward-looking statements due to a number of factors, including,
without limitation, the effects of and changes in the following:
the quality or composition of the Company's loan or investment
portfolios, including collateral values and the repayment abilities
of borrowers and issuers; assumptions that underlie the Company's
allowance for loan losses; general economic and market conditions,
either nationally or in the Company's market areas; unusual and
infrequently occurring events, such as weather-related disasters,
terrorist acts or public health events (such as the current
COVID-19 pandemic), and of governmental and societal responses to
them; the pending merger with United Bankshares, including its
closing on the expected terms and schedule, the costs associated
with completing it and integrating the businesses, and business
operations until and through its closing; the interest rate
environment; competitive pressures among banks and financial
institutions or from companies outside the banking industry; real
estate values; the demand for deposit, loan and investment products
and other financial services; the demand, development and
acceptance of new products and services; the performance of vendors
or other parties with which the Company does business; time and
costs associated with de novo branching, acquisitions, dispositions
and similar transactions; the realization of gains and expense
savings from acquisitions, dispositions and similar transactions;
consumer profiles and spending and savings habits; levels of fraud
in the banking industry; the level of attempted cyber-attacks in
the banking industry; the securities and credit markets; costs
associated with the integration of banking and other internal
operations; the soundness of other financial institutions with
which the Company does business; inflation; technology; and
legislative and regulatory requirements. Many of these
factors and additional risks and uncertainties are described in the
Company's Annual Report on Form 10-K for the year ended
December 31, 2020 and other reports
filed from time to time by the Company with the Securities and
Exchange Commission. This press release speaks only as of its date,
and the Company disclaims any duty to update the information in
it.
COMMUNITY BANKERS
TRUST CORPORATION
|
|
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
UNAUDITED
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
30-Sep-21
|
|
30-Jun-21
|
|
31-Dec-20
|
|
30-Sep-20
|
Assets
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$
|
25,485
|
$
|
21,414
|
$
|
17,845
|
$
|
18,689
|
Interest bearing bank
deposits
|
|
23,591
|
|
101,996
|
|
45,118
|
|
56,795
|
Federal funds
sold
|
|
-
|
|
234
|
|
222
|
|
-
|
Total cash and
cash equivalents
|
|
49,076
|
|
123,644
|
|
63,185
|
|
75,484
|
|
|
|
|
|
|
|
|
|
Securities available
for sale, at fair value
|
|
375,845
|
|
321,759
|
|
271,347
|
|
233,653
|
Securities held to
maturity, at cost
|
|
19,052
|
|
19,824
|
|
21,176
|
|
23,026
|
Equity securities,
restricted, at cost
|
|
8,049
|
|
8,049
|
|
8,436
|
|
8,875
|
Total
securities
|
|
402,946
|
|
349,632
|
|
300,959
|
|
265,554
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
-
|
|
-
|
|
-
|
|
1,151
|
|
|
|
|
|
|
|
|
|
Loans
|
|
1,230,981
|
|
1,191,841
|
|
1,182,362
|
|
1,177,709
|
Purchased credit
impaired (PCI) loans
|
|
15,679
|
|
17,943
|
|
24,040
|
|
27,146
|
Allowance for loan
losses
|
|
(9,929)
|
|
(11,006)
|
|
(12,340)
|
|
(12,328)
|
Allowance for loan
losses – PCI loans
|
|
(156)
|
|
(156)
|
|
(156)
|
|
(156)
|
Net
loans
|
|
1,236,575
|
|
1,198,622
|
|
1,193,906
|
|
1,192,371
|
|
|
|
|
|
|
|
|
|
Bank premises and
equipment, net
|
|
26,967
|
|
27,297
|
|
27,897
|
|
28,197
|
Bank premises and
equipment held for sale
|
|
1,507
|
|
1,507
|
|
1,507
|
|
1,589
|
Right-of-use lease
assets
|
|
4,811
|
|
5,053
|
|
5,530
|
|
5,766
|
Other real estate
owned
|
|
255
|
|
364
|
|
4,361
|
|
4,416
|
Bank owned life
insurance
|
|
30,528
|
|
30,363
|
|
30,029
|
|
29,858
|
Other
assets
|
|
18,635
|
|
17,731
|
|
17,435
|
|
17,851
|
Total
assets
|
$
|
1,771,300
|
$
|
1,754,213
|
$
|
1,644,809
|
$
|
1,622,237
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Noninterest
bearing
|
$
|
345,721
|
$
|
339,712
|
$
|
298,901
|
$
|
281,679
|
Interest
bearing
|
|
1,153,081
|
|
1,149,116
|
|
1,099,800
|
|
1,087,663
|
Total
deposits
|
|
1,498,802
|
|
1,488,828
|
|
1,398,701
|
|
1,369,342
|
|
|
|
|
|
|
|
|
|
Federal funds
purchased
|
|
2,698
|
|
-
|
|
-
|
|
940
|
Federal Home Loan
Bank borrowings
|
|
67,333
|
|
67,500
|
|
57,833
|
|
68,000
|
Trust preferred
capital notes
|
|
4,124
|
|
4,124
|
|
4,124
|
|
4,124
|
Lease
liabilities
|
|
5,045
|
|
5,297
|
|
5,787
|
|
6,027
|
Other
liabilities
|
|
8,961
|
|
8,733
|
|
8,710
|
|
8,014
|
Total
liabilities
|
|
1,586,963
|
|
1,574,482
|
|
1,475,155
|
|
1,456,447
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
Common stock
(200,000,000 shares authorized $0.01 par value;
22,464,593, 22,451,463, 22,200,929 and 22,321,000 shares issued
and outstanding, respectively)
|
|
225
|
|
225
|
|
222
|
|
223
|
Additional paid in
capital
|
|
151,905
|
|
151,522
|
|
149,822
|
|
150,708
|
Retained
earnings
|
|
27,787
|
|
22,811
|
|
13,419
|
|
9,300
|
Accumulated other
comprehensive income
|
|
4,420
|
|
5,173
|
|
6,191
|
|
5,559
|
Total
shareholders' equity
|
|
184,337
|
|
179,731
|
|
169,654
|
|
165,790
|
Total liabilities
and shareholders' equity
|
$
|
1,771,300
|
$
|
1,754,213
|
$
|
1,644,809
|
$
|
1,622,237
|
COMMUNITY BANKERS
TRUST CORPORATION
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
YTD
|
|
Three months
ended
|
|
YTD
|
|
Three months
ended
|
|
2021
|
|
30-Sep-21
|
30-Jun-21
|
|
2020
|
|
30-Sep-20
|
30-Jun-20
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
39,787
|
|
$
|
13,441
|
$
|
13,196
|
|
$
|
38,858
|
|
$
|
12,760
|
$
|
13,012
|
Interest and fees on
PCI loans
|
|
2,348
|
|
|
708
|
|
784
|
|
|
3,121
|
|
|
962
|
|
1,062
|
Interest on deposits
in other banks
|
|
173
|
|
|
59
|
|
54
|
|
|
231
|
|
|
121
|
|
41
|
Interest and
dividends on securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
4,885
|
|
|
1,723
|
|
1,695
|
|
|
4,000
|
|
|
1,362
|
|
1,287
|
Nontaxable
|
|
1,012
|
|
|
350
|
|
335
|
|
|
1,036
|
|
|
344
|
|
349
|
Total interest and
dividend income
|
|
48,205
|
|
|
16,281
|
|
16,064
|
|
|
47,246
|
|
|
15,549
|
|
15,751
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
4,174
|
|
|
1,262
|
|
1,347
|
|
|
9,215
|
|
|
2,614
|
|
3,182
|
Interest on borrowed
funds
|
|
661
|
|
|
224
|
|
220
|
|
|
720
|
|
|
222
|
|
209
|
Total interest
expense
|
|
4,835
|
|
|
1,486
|
|
1,567
|
|
|
9,935
|
|
|
2,836
|
|
3,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
43,370
|
|
|
14,795
|
|
14,497
|
|
|
37,311
|
|
|
12,713
|
|
12,360
|
(Recovery of)
provision for loan losses
|
|
(2,650)
|
|
|
(1,250)
|
|
-
|
|
|
4,200
|
|
|
-
|
|
900
|
Net interest
income after (recovery of)
provision for loan losses
|
|
46,020
|
|
|
16,045
|
|
14,497
|
|
|
33,111
|
|
|
12,713
|
|
11,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and
fees
|
|
2,001
|
|
|
671
|
|
651
|
|
|
1,817
|
|
|
613
|
|
532
|
Gain (loss) on
securities transactions, net
|
|
(19)
|
|
|
(7)
|
|
(28)
|
|
|
281
|
|
|
78
|
|
242
|
Gain on sale of
loans
|
|
-
|
|
|
-
|
|
-
|
|
|
11
|
|
|
-
|
|
-
|
Income on bank owned
life insurance
|
|
499
|
|
|
165
|
|
168
|
|
|
518
|
|
|
171
|
|
173
|
Mortgage loan
income
|
|
810
|
|
|
255
|
|
235
|
|
|
822
|
|
|
228
|
|
373
|
Other
|
|
1,179
|
|
|
297
|
|
435
|
|
|
974
|
|
|
382
|
|
296
|
Total noninterest
income
|
|
4,470
|
|
|
1,381
|
|
1,461
|
|
|
4,423
|
|
|
1,472
|
|
1,616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
15,968
|
|
|
5,408
|
|
5,352
|
|
|
14,806
|
|
|
5,041
|
|
4,613
|
Occupancy
expenses
|
|
2,387
|
|
|
790
|
|
761
|
|
|
2,420
|
|
|
815
|
|
778
|
Equipment
expenses
|
|
880
|
|
|
275
|
|
317
|
|
|
1,047
|
|
|
330
|
|
345
|
FDIC
assessment
|
|
481
|
|
|
161
|
|
108
|
|
|
455
|
|
|
174
|
|
156
|
Data processing
fees
|
|
2,022
|
|
|
673
|
|
741
|
|
|
1,821
|
|
|
656
|
|
573
|
Other real estate
expenses, net
|
|
(415)
|
|
|
5
|
|
(431)
|
|
|
89
|
|
|
87
|
|
(4)
|
Other operating
expenses
|
|
5,734
|
|
|
1,798
|
|
2,344
|
|
|
4,355
|
|
|
1,423
|
|
1,412
|
Total noninterest
expense
|
|
27,057
|
|
|
9,110
|
|
9,192
|
|
|
24,993
|
|
|
8,526
|
|
7,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
23,433
|
|
|
8,316
|
|
6,766
|
|
|
12,541
|
|
|
5,659
|
|
5,203
|
Income tax
expense
|
|
4,816
|
|
|
1,768
|
|
1,340
|
|
|
2,450
|
|
|
1,143
|
|
1,043
|
Net
income
|
$
|
18,617
|
|
$
|
6,548
|
$
|
5,426
|
|
$
|
10,091
|
|
$
|
4,516
|
$
|
4,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMUNITY BANKERS
TRUST CORPORATION
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
Three months
ended
|
|
30-Sep-21
|
30-Jun-21
|
|
31-Mar-21
|
|
31-Dec-20
|
|
30-Sep-20
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
13,441
|
$
|
13,196
|
$
|
13,150
|
$
|
13,622
|
$
|
12,760
|
Interest and fees on
PCI loans
|
|
708
|
|
784
|
|
856
|
|
932
|
|
962
|
Interest on deposits
in other banks
|
|
59
|
|
54
|
|
60
|
|
107
|
|
121
|
Interest and
dividends on securities
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
1,722
|
|
1,695
|
|
1,467
|
|
1,373
|
|
1,362
|
Nontaxable
|
|
350
|
|
335
|
|
327
|
|
337
|
|
344
|
Total interest and
dividend income
|
|
16,281
|
|
16,064
|
|
15,860
|
|
16,371
|
|
15,549
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
1,262
|
|
1,347
|
|
1,565
|
|
2,151
|
|
2,614
|
Interest on borrowed
funds
|
|
224
|
|
220
|
|
217
|
|
221
|
|
222
|
Total interest
expense
|
|
1,486
|
|
1,567
|
|
1,782
|
|
2,372
|
|
2,836
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
14,795
|
|
14,497
|
|
14,078
|
|
13,999
|
|
12,713
|
(Recovery of)
provision for loan losses
|
|
(1,250)
|
|
-
|
|
(1,400)
|
|
-
|
|
-
|
Net interest
income after (recovery of)
provision for loan losses
|
|
16,045
|
|
14,497
|
|
15,478
|
|
13,999
|
|
12,713
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
Service charges and
fees
|
|
671
|
|
651
|
|
679
|
|
777
|
|
613
|
Gain (loss) on
securities transactions, net
|
|
(7)
|
|
(28)
|
|
16
|
|
3
|
|
78
|
Gain on sale of
loans
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Income on bank owned
life insurance
|
|
165
|
|
168
|
|
166
|
|
171
|
|
171
|
Mortgage loan
income
|
|
255
|
|
235
|
|
320
|
|
294
|
|
228
|
Other
|
|
297
|
|
435
|
|
447
|
|
280
|
|
382
|
Total noninterest
income
|
|
1,381
|
|
1,461
|
|
1,628
|
|
1,525
|
|
1,472
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
5,408
|
|
5,352
|
|
5,208
|
|
5,332
|
|
5,041
|
Occupancy
expenses
|
|
790
|
|
761
|
|
836
|
|
758
|
|
815
|
Equipment
expenses
|
|
275
|
|
317
|
|
288
|
|
320
|
|
330
|
FDIC
assessment
|
|
161
|
|
108
|
|
212
|
|
184
|
|
174
|
Data processing
fees
|
|
673
|
|
741
|
|
608
|
|
632
|
|
656
|
Other real estate
expenses, net
|
|
5
|
|
(431)
|
|
11
|
|
63
|
|
87
|
Other operating
expenses
|
|
1,798
|
|
2,344
|
|
1,592
|
|
1,450
|
|
1,423
|
Total noninterest
expense
|
|
9,110
|
|
9,192
|
|
8,755
|
|
8,739
|
|
8,526
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
8,316
|
|
6,766
|
|
8,351
|
|
6,785
|
|
5,659
|
Income tax
expense
|
|
1,768
|
|
1,340
|
|
1,708
|
|
1,328
|
|
1,143
|
Net
income
|
$
|
6,548
|
$
|
5,426
|
$
|
6,643
|
$
|
5,457
|
$
|
4,516
|
COMMUNITY BANKERS
TRUST CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
MARGIN ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2021
|
|
|
Three months ended
June 30, 2021
|
|
|
|
Average
Balance
Sheet
|
|
Interest
Income /
Expense
|
|
Average
Rates
Earned /
Paid
|
|
|
Average
Balance
Sheet
|
|
Interest
Income /
Expense
|
|
Average
Rates
Earned /
Paid
|
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
$
|
1,203,674
|
|
$
|
13,441
|
|
4.43
|
%
|
|
$
|
1,204,691
|
|
$
|
13,196
|
|
4.39
|
%
|
|
PCI loans,
including fees
|
|
16,789
|
|
|
708
|
|
16.51
|
|
|
|
19,827
|
|
|
784
|
|
15.63
|
|
|
Total
loans
|
|
1,220,463
|
|
|
14,149
|
|
4.60
|
|
|
|
1,224,518
|
|
|
13,980
|
|
4.58
|
|
|
Interest bearing bank
balances
|
|
73,098
|
|
|
59
|
|
0.32
|
|
|
|
86,130
|
|
|
54
|
|
0.25
|
|
|
Federal funds
sold
|
|
225
|
|
|
-
|
|
0.12
|
|
|
|
208
|
|
|
-
|
|
0.08
|
|
|
Securities
(taxable)
|
|
332,322
|
|
|
1,723
|
|
2.07
|
|
|
|
272,556
|
|
|
1,695
|
|
2.49
|
|
|
Securities (tax
exempt)(1)
|
|
53,456
|
|
|
443
|
|
3.32
|
|
|
|
50,260
|
|
|
424
|
|
3.37
|
|
|
Total earning
assets
|
|
1,679,564
|
|
|
16,374
|
|
3.87
|
|
|
|
1,633,672
|
|
|
16,153
|
|
3.97
|
|
|
Allowance for loan
losses
|
|
(11,312)
|
|
|
|
|
|
|
|
|
(11,037)
|
|
|
|
|
|
|
|
Non-earning
assets
|
|
101,745
|
|
|
|
|
|
|
|
|
104,716
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,769,997
|
|
|
|
|
|
|
|
$
|
1,727,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - interest
bearing
|
$
|
283,809
|
|
$
|
125
|
|
0.18
|
|
|
$
|
268,525
|
|
$
|
119
|
|
0.18
|
|
|
Savings and money
market
|
|
331,981
|
|
|
201
|
|
0.24
|
|
|
|
323,137
|
|
|
205
|
|
0.25
|
|
|
Time
deposits
|
|
540,934
|
|
|
936
|
|
0.69
|
|
|
|
535,455
|
|
|
1,023
|
|
0.77
|
|
|
Total interest
bearing deposits
|
|
1,156,724
|
|
|
1,262
|
|
0.43
|
|
|
|
1,127,117
|
|
|
1,347
|
|
0.48
|
|
|
Short-term
borrowings
|
|
139
|
|
|
-
|
|
0.19
|
|
|
|
134
|
|
|
-
|
|
0.20
|
|
|
FHLB and other
borrowings
|
|
71,619
|
|
|
224
|
|
1.22
|
|
|
|
71,785
|
|
|
220
|
|
1.22
|
|
|
Total interest
bearing liabilities
|
|
1,228,482
|
|
|
1,486
|
|
0.48
|
|
|
|
1,199,036
|
|
|
1,567
|
|
0.52
|
|
|
Noninterest bearing
deposits
|
|
344,320
|
|
|
|
|
|
|
|
|
337,907
|
|
|
|
|
|
|
|
Other
liabilities
|
|
13,776
|
|
|
|
|
|
|
|
|
13,921
|
|
|
|
|
|
|
|
Total
liabilities
|
|
1,586,578
|
|
|
|
|
|
|
|
|
1,550,864
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
183,419
|
|
|
|
|
|
|
|
|
176,487
|
|
|
|
|
|
|
|
Total liabilities
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
$
|
1,769,997
|
|
|
|
|
|
|
|
$
|
1,727,351
|
|
|
|
|
|
|
|
Net interest
earnings
|
|
|
|
$
|
14,888
|
|
|
|
|
|
|
|
$
|
14,586
|
|
|
|
|
Interest
spread
|
|
|
|
|
|
|
3.39
|
%
|
|
|
|
|
|
|
|
3.45
|
%
|
|
Net interest
margin
|
|
|
|
|
|
|
3.52
|
%
|
|
|
|
|
|
|
|
3.58
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
|
|
|
93
|
|
|
|
|
|
|
|
|
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
September 30, 2021
|
|
|
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
|
$
|
1,203,674
|
|
$
|
13,441
|
|
4.43
|
%
|
|
$
|
1,169,330
|
|
$
|
12,760
|
|
4.33
|
%
|
|
PCI loans,
including fees
|
|
16,789
|
|
|
708
|
|
16.51
|
|
|
|
28,480
|
|
|
962
|
|
13.21
|
|
|
Total
loans
|
|
1,220,463
|
|
|
14,149
|
|
4.60
|
|
|
|
1,197,810
|
|
|
13,722
|
|
4.55
|
|
|
Interest bearing bank
balances
|
|
73,098
|
|
|
59
|
|
0.32
|
|
|
|
70,590
|
|
|
121
|
|
0.68
|
|
|
Federal funds
sold
|
|
225
|
|
|
-
|
|
0.12
|
|
|
|
127
|
|
|
-
|
|
0.07
|
|
|
Securities
(taxable)
|
|
332,322
|
|
|
1,723
|
|
2.07
|
|
|
|
198,296
|
|
|
1,362
|
|
2.75
|
|
|
Securities (tax
exempt)(1)
|
|
53,456
|
|
|
443
|
|
3.32
|
|
|
|
50,551
|
|
|
435
|
|
3.44
|
|
|
Total earning
assets
|
|
1,679,564
|
|
|
16,374
|
|
3.87
|
|
|
|
1,517,374
|
|
|
15,640
|
|
4.09
|
|
|
Allowance for loan
losses
|
|
(11,312)
|
|
|
|
|
|
|
|
|
(12,424)
|
|
|
|
|
|
|
|
Non-earning
assets
|
|
101,745
|
|
|
|
|
|
|
|
|
108,772
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,769,997
|
|
|
|
|
|
|
|
$
|
1,613,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - interest
bearing
|
$
|
283,809
|
|
$
|
125
|
|
0.18
|
|
|
$
|
200,995
|
|
$
|
112
|
|
0.22
|
|
|
Savings and money
market
|
|
331,981
|
|
|
201
|
|
0.24
|
|
|
|
268,350
|
|
|
241
|
|
0.36
|
|
|
Time
deposits
|
|
540,934
|
|
|
936
|
|
0.69
|
|
|
|
612,848
|
|
|
2,261
|
|
1.46
|
|
|
Total interest
bearing deposits
|
|
1,156,724
|
|
|
1,262
|
|
0.43
|
|
|
|
1,082,193
|
|
|
2,614
|
|
0.96
|
|
|
Short-term
borrowings
|
|
139
|
|
|
-
|
|
0.19
|
|
|
|
1,611
|
|
|
1
|
|
0.21
|
|
|
FHLB and other
borrowings
|
|
71,619
|
|
|
224
|
|
1.22
|
|
|
|
72,285
|
|
|
221
|
|
1.19
|
|
|
Total interest
bearing liabilities
|
|
1,228,482
|
|
|
1,486
|
|
0.48
|
|
|
|
1,156,089
|
|
|
2,836
|
|
0.97
|
|
|
Noninterest bearing
deposits
|
|
344,320
|
|
|
|
|
|
|
|
|
281,026
|
|
|
|
|
|
|
|
Other
liabilities
|
|
13,776
|
|
|
|
|
|
|
|
|
12,980
|
|
|
|
|
|
|
|
Total
liabilities
|
|
1,586,578
|
|
|
|
|
|
|
|
|
1,450,095
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
183,419
|
|
|
|
|
|
|
|
|
163,627
|
|
|
|
|
|
|
|
Total liabilities
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
$
|
1,769,997
|
|
|
|
|
|
|
|
$
|
1,613,722
|
|
|
|
|
|
|
|
Net interest
earnings
|
|
|
|
$
|
14,888
|
|
|
|
|
|
|
|
$
|
12,804
|
|
|
|
|
Interest
spread
|
|
|
|
|
|
|
3.39
|
%
|
|
|
|
|
|
|
|
3.12
|
%
|
|
Net interest
margin
|
|
|
|
|
|
|
3.52
|
%
|
|
|
|
|
|
|
|
3.35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
|
|
|
93
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2021
|
|
|
Nine 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
|
$
|
1,199,965
|
|
$
|
39,787
|
|
4.43
|
%
|
|
$
|
1,127,002
|
|
$
|
38,858
|
|
4.59
|
%
|
|
PCI loans,
including fees
|
|
19,924
|
|
|
2,348
|
|
15.54
|
|
|
|
29,917
|
|
|
3,121
|
|
13.71
|
|
|
Total
loans
|
|
1,219,889
|
|
|
42,135
|
|
4.62
|
|
|
|
1,156,919
|
|
|
41,979
|
|
4.83
|
|
|
Interest bearing bank
balances
|
|
76,484
|
|
|
173
|
|
0.30
|
|
|
|
46,620
|
|
|
231
|
|
0.66
|
|
|
Federal funds
sold
|
|
210
|
|
|
-
|
|
0.09
|
|
|
|
159
|
|
|
-
|
|
0.36
|
|
|
Securities
(taxable)
|
|
280,295
|
|
|
4,885
|
|
2.32
|
|
|
|
190,035
|
|
|
4,000
|
|
2.81
|
|
|
Securities (tax
exempt)(1)
|
|
50,974
|
|
|
1,281
|
|
3.35
|
|
|
|
50,192
|
|
|
1,311
|
|
3.48
|
|
|
Total earning
assets
|
|
1,627,852
|
|
|
48,474
|
|
3.98
|
|
|
|
1,443,925
|
|
|
47,521
|
|
4.38
|
|
|
Allowance for loan
losses
|
|
(11,594)
|
|
|
|
|
|
|
|
|
(11,023)
|
|
|
|
|
|
|
|
Non-earning
assets
|
|
104,124
|
|
|
|
|
|
|
|
|
108,056
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,720,382
|
|
|
|
|
|
|
|
$
|
1,540,958
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - interest
bearing
|
$
|
267,862
|
|
$
|
382
|
|
0.19
|
|
|
$
|
184,415
|
|
$
|
304
|
|
0.22
|
|
|
Savings and money
market
|
|
315,779
|
|
|
589
|
|
0.25
|
|
|
|
243,311
|
|
|
749
|
|
0.41
|
|
|
Time
deposits
|
|
542,195
|
|
|
3,203
|
|
0.79
|
|
|
|
629,598
|
|
|
8,162
|
|
1.73
|
|
|
Total
interest bearing deposits
|
|
1,125,836
|
|
|
4,174
|
|
0.50
|
|
|
|
1,057,324
|
|
|
9,215
|
|
1.16
|
|
|
Short-term
borrowings
|
|
236
|
|
|
-
|
|
0.21
|
|
|
|
2,038
|
|
|
24
|
|
1.57
|
|
|
FHLB and other
borrowings
|
|
70,868
|
|
|
661
|
|
1.23
|
|
|
|
70,263
|
|
|
696
|
|
1.30
|
|
|
Total interest
bearing liabilities
|
|
1,196,940
|
|
|
4,835
|
|
0.54
|
|
|
|
1,129,625
|
|
|
9,935
|
|
1.17
|
|
|
Noninterest bearing
deposits
|
|
332,509
|
|
|
|
|
|
|
|
|
237,198
|
|
|
|
|
|
|
|
Other
liabilities
|
|
13,644
|
|
|
|
|
|
|
|
|
13,849
|
|
|
|
|
|
|
|
Total
liabilities
|
|
1,543,093
|
|
|
|
|
|
|
|
|
1,380,672
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
177,289
|
|
|
|
|
|
|
|
|
160,286
|
|
|
|
|
|
|
|
Total liabilities
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders' equity
|
$
|
1,720,382
|
|
|
|
|
|
|
|
$
|
1,540,958
|
|
|
|
|
|
|
|
Net interest
earnings
|
|
|
|
$
|
43,639
|
|
|
|
|
|
|
|
$
|
37,586
|
|
|
|
|
Interest
spread
|
|
|
|
|
|
|
3.44
|
%
|
|
|
|
|
|
|
|
3.21
|
%
|
|
Net interest
margin
|
|
|
|
|
|
|
3.58
|
%
|
|
|
|
|
|
|
|
3.48
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
|
|
|
269
|
|
|
|
|
|
|
|
$
|
275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Income and
yields are reported on a tax-equivalent basis assuming a federal
tax rate of 21%.
|
|
|
|
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/community-bankers-trust-corporation-reports-results-for-third-quarter-2021-301411812.html
SOURCE Community Bankers Trust Corporation