UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 24, 2020
COMMUNITY BANKERS TRUST CORPORATION
(Exact name of registrant as specified in its charter)
|
Virginia (State or other jurisdiction of incorporation) |
001-32590 (Commission File Number) |
20-2652949 (IRS Employer Identification No.) | |
|
9954 Mayland Drive, Suite 2100 Richmond, Virginia (Address of principal executive offices) |
23233 (Zip Code) | ||
Registrant’s telephone number, including area code: (804) 934-9999
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered |
| Common Stock, $0.01 par value | ESXB | The NASDAQ Stock Market, LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02 | Results of Operations and Financial Condition. |
On April 24, 2020, Community Bankers Trust Corporation issued an earnings release reporting its financial results for the period ended March 31, 2020. The earnings release is being furnished as Exhibit 99.1 to this report and is incorporated by reference into this Item 2.02.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits. |
| Exhibit No. | Description | |
| 99.1 | Earnings release issued April 24, 2020 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| COMMUNITY BANKERS TRUST CORPORATION | |||
| (Registrant) | |||
| Date: April 24, 2020 | By: | /s/ John M. Oakey, III | |
| John M. Oakey, III | |||
|
|
Executive Vice President, General Counsel and Secretary | ||
EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | Earnings release issued April 24, 2020 |
Exhibit 99.1
Community Bankers Trust Corporation Reports Results for First Quarter of 2020
Net income was $1.4 million in the first quarter of 2020. Provision for loan losses of $3.3 million increases allowance for loan losses to 1.10% of total loans.
Conference Call on Friday, April 24, 2020, at 10:00 a.m. Eastern Time
Richmond, VA, April 24, 2020 - Community Bankers Trust Corporation (the “Company”) (NASDAQ: ESXB), the holding company for Essex Bank (the “Bank”), today reported results for the first quarter of 2020.
operating Highlights
| · | Provision for loan losses for the first quarter of 2020 was $3.3 million, which resulted in an allowance for loan losses to total loans of 1.10% at March 31, 2020, compared with 0.80% at December 31, 2019. The provision was the result of rapidly evolving uncertainties and potential effects of the coronavirus disease 2019 (“COVID-19”). |
| · | Loans, excluding purchased credit impaired (PCI) loans, grew $20.9 million, or 2.0%, since year end 2019. |
| · | Deposits grew $57.6 million, or 5.0%, since year end 2019. |
| · | Noninterest bearing deposits grew $22.6 million, or 13.6%, year over year. |
| · | Net interest margin was 3.68% in the first quarter of 2020 compared with 3.74% in the fourth quarter of 2019 and 3.81% in the first quarter of 2019. |
| · | Federal Home Loan Bank advances of $58.3 million decreased $10.2 million, or 14.8%, from year end. |
Financial HIGHLIGHTS
| · | Net income was $1.4 million for the quarter ended March 31, 2020, compared with net income of $4.0 million in the fourth quarter of 2019 and net income of $3.5 million in the first quarter of 2019. |
| · | Fully diluted earnings per common share was $0.06 for the quarter ended March 31, 2020, compared with $0.18 per share and $0.16 per share for the quarters ended December 31, 2019 and March 31, 2019, respectively. |
| · | Provision for loan losses was $3.3 million in the first quarter of 2020 compared with $200,000 in the fourth quarter of 2019 and no provision in the first quarter of 2019. |
| · | Interest and fees on loans were $13.1 million in the first quarter of 2020, an increase of $667,000, or 5.4%, over the first quarter of 2019. |
| · | Noninterest income increased $321,000, or 31.7%, year over year, driven by mortgage loan income, which increased $159,000 over that time frame. |
| · | Noninterest expenses decreased $246,000 year over year, driven by a decrease of $229,000 in salaries and employee benefits and $103,000 in occupancy expenses. |
MANAGEMENT COMMENTS
Rex L. Smith, III, President and Chief Executive Officer, stated, “The COVID-19 pandemic had an obvious impact on the results for the quarter, the largest of which was a prudent increase in the allowance for loan and lease losses as we try to anticipate the final effect of the economic and business disruption. But, amid this challenging situation, we have provided crucial and necessary services to all of our communities, both large and small. We continue our focus on meeting our customers’ needs with superior service and flexibility that only a community bank could deliver in this environment. All of our branches have remained open with by appointment and full service drive-through options. Additionally, we have expanded the hours of our Customer Service Center to help in this time of need.”
Smith added, “We also continue to work with our loan customers to provide payment relief on preexisting loans and to assist them through the CARES Act Payroll Protection Program. Helping our customers and our communities is the most important job we have, especially when we are in challenging times.”
Smith continued, “Despite the large allowance expense, the Company had numerous positive metrics that will positively affect earnings once we turn the corner on the healthcare crisis. Loan and deposit growth for the quarter were strong and both noninterest income and noninterest expense showed improvement.”
Smith concluded, “There will be more challenges ahead, but we have a strong capital position, a very experienced management team that has navigated through tough times before and a dedicated group of associates who are working harder than ever to meet the challenges our customers and communities face.”
RESULTS OF OPERATIONS
Net income was $1.4 million for the first quarter of 2020, compared with net income of $4.0 million in the fourth quarter of 2019 and net income of $3.5 million in the first quarter of 2019. Earnings per common share, basic and fully diluted, were $0.06 per share, $0.18 per share and $0.16 per share for the three months ended March 31, 2020, December 31, 2019, and March 31, 2019, respectively.
The decrease of $2.1 million, or 59.6%, in net income, for the first quarter of 2020 compared with the first quarter of 2019 was primarily the result of a provision for loan losses of $3.3 million in the first quarter of 2020 to reflect the business and market disruptions with respect to COVID-19.
Offsetting these decreases to net income were a decrease of $532,000 in income tax expenses, an increase of $321,000 in noninterest income, a decrease of $246,000 in noninterest expenses and an increase of $113,000 in net interest income. Details on the drivers of these year-over-year changes are presented below.
The decrease of $2.6 million in net income on a linked quarter basis was also caused primarily by an increase of $3.1 million in provision for loan losses. Also affecting net income on a linked quarter basis were a decline of $331,000 in interest and dividend income and a decrease of $43,000 in noninterest income. Offsetting these decreases to net income were a decrease of $614,000 in income tax expenses, a decrease of $156,000 in interest expenses and a decrease of $74,000 in noninterest expenses. Linked quarter details are also provided below.
The following table presents summary income statements for the three months ended March 31, 2020, December 31, 2019 and March 31, 2019.
|
SUMMARY INCOME STATEMENT (Unaudited) |
| (Dollars in thousands) | For the three months ended | |||||||||||
| 31-Mar-20 | 31-Dec-19 | 31-Mar-19 | ||||||||||
| Interest income | $ | 15,946 | $ | 16,277 | $ | 15,806 | ||||||
| Interest expense | 3,708 | 3,864 | 3,681 | |||||||||
| Net interest income | 12,238 | 12,413 | 12,125 | |||||||||
| Provision for loan losses | 3,300 | 200 | - | |||||||||
| Net interest income after provision for loan losses | 8,938 | 12,213 | 12,125 | |||||||||
| Noninterest income | 1,335 | 1,378 | 1,014 | |||||||||
| Noninterest expense | 8,594 | 8,668 | 8,840 | |||||||||
| Income before income taxes | 1,679 | 4,923 | 4,299 | |||||||||
| Income tax expense | 264 | 878 | 796 | |||||||||
| Net income | $ | 1,415 | $ | 4,045 | $ | 3,503 | ||||||
| EPS Basic | $ | 0.06 | $ | 0.18 | $ | 0.16 | ||||||
| EPS Diluted | $ | 0.06 | $ | 0.18 | $ | 0.16 | ||||||
| Fully Diluted share count | 22,591 | 22,696 | 22,430 | |||||||||
| Return on average assets, annualized | 0.39 | % | 1.14 | % | 1.01 | % | ||||||
| Return on average equity, annualized | 3.58 | % | 10.42 | % | 10.02 | % | ||||||
| 2 |
Net Interest Income
Linked Quarter Basis
Net interest income was $12.2 million for the quarter ended March 31, 2020. This was a linked quarter decrease of $175,000, or 1.4%. Interest and dividend income on a linked quarter basis decreased $331,000, or 2.0%, to $15.9 million for the first quarter of 2020. Interest income with respect to loans, excluding PCI loans, decreased $219,000, or 1.6%, during the first quarter of 2020 when compared with the fourth quarter of 2019. This decline in interest and fees on loans during the quarter was attributed to the 1.50% decrease during the same period in the discount rate set by the Board of Governors of the Federal Reserve System. This rate serves as a benchmark for the prime rate at which a bank prices many of its loans and as a pricing tool for part of a bank’s securities portfolio. The average balance of loans, excluding PCI loans, increased by $18.2 million, or 1.7%, on a linked quarter basis, to $1.065 billion. The increase muted a portion of the decrease in interest and dividend income driven by the decline in rates. The yield on loans decreased from 5.04% in the fourth quarter of 2019 to 4.93% in the first quarter of 2020. Interest income with respect to PCI loans was $1.1 million in the first quarter of 2020, and the corresponding yield was 13.87%, compared with $1.2 million and a yield of 13.68% in the fourth quarter of 2019. Interest income on securities decreased $22,000 on a linked quarter basis and was $1.7 million in the first quarter of 2020.
Interest income on securities on a tax-equivalent basis equaled $1.8 million for the first quarter of 2020, which was a decrease of $17,000 from the fourth quarter of 2019. The tax-equivalent yield on the securities portfolio was 3.08% in the first quarter of 2020 and 3.15% in the fourth quarter of 2019 based on a 21.0% income tax rate.
Interest expense of $3.7 million in the first quarter of 2020 was a decrease of $156,000, or 4.0%, on a linked quarter basis. Interest on deposits decreased $96,000, or 2.7%. Interest on borrowed funds decreased $60,000, or 17.2%. Average interest bearing balances of Federal Home Loan Bank and other borrowings decreased $1.8 million from the fourth quarter of 2019 to the first quarter of 2020. The cost on these borrowings decreased from 1.82% in the fourth quarter of 2019 to 1.58% in the first quarter of 2020. The Company’s cost of interest bearing deposits of 1.36% in the first quarter of 2020 was a decrease of seven basis points from the prior quarter.
With the changes in interest income noted above, the tax-equivalent net interest margin decreased from 3.74% in the fourth quarter of 2019 to 3.68% in the first quarter of 2020. The interest spread was 3.42% for the current quarter compared with 3.47% in the prior quarter.
Year-Over-Year
Net interest income increased $113,000, or 0.9%, from the first quarter of 2019 to the first quarter of 2020. Net interest income was $12.2 million in the first quarter of 2020 compared with $12.1 million for the same period in 2019. Interest and dividend income increased $140,000, or 0.9%, over this time period. Interest and fees on loans increased by $667,000. This increase was mitigated by securities income, which declined $304,000, interest and fees on PCI loans, which declined $196,000, and interest on deposits in other banks, which decreased by $27,000. Interest on PCI loans was $1.1 million in the first quarter of 2020 compared with $1.3 million in the first quarter of 2019. The average balance of the PCI portfolio declined $6.5 million during the year-over-year comparison period. The increase in interest and fees on loans was generated by an increase of $66.2 million, or 6.6%, in the average balance of loans. A portion of this loan growth was a shift in the mix of earning assets, as securities average balances declined $21.9 million year over year. The average balance of total earning assets increased $40.1 million, or 3.1%, from the first quarter of 2019 to the first quarter of 2020. The yield on earning assets decreased from 4.95% in the first quarter of 2019 to 4.78% in the first quarter of 2020. The yield on earning assets was the culmination of decreases in the yield on loans, from 5.36% in the first quarter of 2019 to 5.19% in the first quarter of 2020, the tax-equivalent yield on securities, from 3.35% in the first quarter of 2019 to 3.08% in the first quarter of 2020, and the yield on interest bearing bank balances from 2.70% to 1.68% year over year.
Interest expense increased $27,000, or 0.7%, when comparing the first quarter of 2019 and the first quarter of 2020. Interest expense on deposits increased $185,000, or 5.7%, as the average balance of interest bearing deposits increased $20.5 million, or 2.0%. This growth was primarily comprised of an increase of $9.2 million in the average balance of time deposits, which averaged $632.7 million in the first quarter of 2020. Interest-bearing demand deposits increased $12.5 million year over year and were $170.3 million, on average, in the first quarter of 2020. Offsetting these increases was a decrease in the average balance of savings and money market accounts of $1.3 million, to $220.0 million for the first quarter of 2020. The shift in deposit balances increased the cost of interest bearing deposits from 1.31% in the first quarter of 2019 to 1.34% in the first quarter of 2020.
FHLB and other borrowings decreased, on average, $6.4 million year over year, and there was a decrease in the rate paid, from 2.17% in the first quarter of 2019 to 1.58% in the first quarter of 2020. Overall, the Bank’s cost of interest bearing liabilities decreased two basis points, from 1.38% in the first quarter of 2019 to 1.36% in the first quarter of 2020.
The tax-equivalent net interest margin decreased 13 basis points, from 3.81% in the first quarter of 2019 to 3.68% in the first quarter of 2020. Likewise, the interest spread decreased from 3.57% to 3.42% over the same time period. The decrease in the margin was precipitated by a greater decrease in the yield on earning assets of 17 basis points compared with a decline in the cost of interest bearing liabilities of only two basis points.
| 3 |
The following table compares the Company's net interest margin, on a tax-equivalent basis, for the three months ended March 31, 2020, December 31, 2019 and March 31, 2019.
|
NET INTEREST MARGIN (Unaudited) |
| (Dollars in thousands) | For the three months ended | |||||||||||
| 31-Mar-20 | 31-Dec-19 | 31-Mar-19 | ||||||||||
| Average interest earning assets | $ | 1,344,906 | $ | 1,326,184 | $ | 1,304,842 | ||||||
| Interest income | $ | 15,946 | $ | 16,277 | $ | 15,806 | ||||||
| Interest income - tax-equivalent | $ | 16,038 | $ | 16,364 | $ | 15,933 | ||||||
| Yield on interest earning assets | 4.78 | % | 4.90 | % | 4.95 | % | ||||||
| Average interest bearing liabilities | $ | 1,093,585 | $ | 1,069,709 | $ | 1,082,186 | ||||||
| Interest expense | $ | 3,708 | $ | 3,864 | $ | 3,681 | ||||||
| Cost of interest bearing liabilities | 1.36 | % | 1.43 | % | 1.38 | % | ||||||
| Net interest income | $ | 12,238 | $ | 12,413 | $ | 12,125 | ||||||
| Net interest income - tax-equivalent | $ | 12,330 | $ | 12,500 | $ | 12,252 | ||||||
| Interest spread | 3.42 | % | 3.47 | % | 3.57 | % | ||||||
| Net interest margin | 3.68 | % | 3.74 | % | 3.81 | % | ||||||
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 provision for loan losses on the loan portfolio, excluding PCI loans, of $3.3 million for the first quarter of 2020. This compares with a provision of loan losses of $200,000 in the fourth quarter of 2019 and no provision for loan losses in the first quarter of 2019.
The provision recorded in the first quarter of 2020 was due to the heightened risks associated with the loan portfolio that resulted from the economic impact of the rapidly evolving effects of the COVID-19 stay-at-home orders, business shut-downs and increased unemployment. Lenders reviewed each loan within the portfolio to identify those borrowers that management believed to be possibly impacted by the current state of the economy. Loans identified with increased risk were aggregated by loan type. This analysis indicated a risk grade migration in a number of loan categories that led to a heightened risk level in the loan portfolio. The impact of the loans’ risk grade migration was applied to the allowance for loan loss calculation, which led to the provision for loan losses for the quarter.
With respect to the PCI portfolio, due to the stable nature of its performance and its declining balances over time as the portfolio amortizes, no provision was taken during either of the first quarter of 2020, the fourth quarter of 2019 or the first quarter of 2019. Additional discussion of loan quality is presented below.
Noninterest Income
Linked Quarter Basis
Noninterest income was $1.3 million for the first quarter of 2020, a $43,000 decrease compared with $1.4 million for the fourth quarter of 2019. Service charges and fees declined by $85,000 and were $672,000 in the first quarter of 2020 compared with $757,000 in the fourth quarter of 2019. The decrease in service charge income is the result of the increased volume of debit card transactions and overdraft fees that occur in the fourth quarter of a typical year, with the past two quarters following the normal pattern. Other noninterest income of $296,000 was a decrease of $24,000 from the fourth quarter of 2019, primarily due to a decrease in dividend income from investments in partnerships. Partially offsetting the decrease was an increase in mortgage loan income of $73,000, or 49.3%, which was $221,000 in the first quarter of 2020, compared with $148,000 in the fourth quarter of 2019.
Year-Over-Year
Noninterest income of $1.3 million in the first quarter of 2020 was an increase of $321,000, or 31.7%, over the first quarter of 2019. Mortgage loan income increased $159,000, or 256.5%, from $62,000 in the first quarter of 2019 to $221,000 in the first quarter of 2020. Other noninterest income was $296,000 in the first quarter of 2020 compared with $176,000 in the first quarter of 2019. The increase of $120,000 was primarily the result of a $64,000 gain on extinguishment of an FHLB borrowing combined with $90,000 in swap fee income, offset by a $24,000 decrease in brokerage fees and commissions. Service charges on deposit accounts of $672,000 in the first quarter of 2020 increased by $63,000, or 10.3%, year over year. This increase was primarily the result of an increase of $15.4 million in the average balance of noninterest bearing deposits and $12.5 million in interest-bearing demand deposits. Offsetting these increases in noninterest income year over year were decreases of $25,000 in losses on securities transactions and $7,000 in income on bank owned life insurance.
| 4 |
Noninterest Expenses
Linked Quarter Basis
Noninterest expenses totaled $8.6 million for the first quarter of 2020, as compared with $8.7 million for the fourth quarter of 2019, a decrease of $74,000, or 0.9%. Salaries and employee benefits in the first quarter of 2020 were $5.2 million compared with $5.5 million in the fourth quarter of 2019. This is a decrease of $328,000, or 6.0% on a linked quarter basis. The primary reasons for the decreases were reductions of $282,000 in salaries and $91,000 in employee benefits. Also declining on a linked quarter basis were other real estate expenses, net, which decreased $50,000 on a linked quarter basis. Offsetting these decreases to noninterest expenses were increases on a linked quarter basis of $145,000 in FDIC assessment, $79,000 in other operating expenses, $40,000 in equipment expenses and $36,000 in occupancy expenses.
Year-Over-Year
Noninterest expenses decreased $246,000, or 2.8%, when comparing the first quarter of 2020 to the same period in 2019. The largest component of the change was a reduction of $229,000 in salaries and employee benefits. During 2019, two branch offices were closed, which in turn reduced the number of full-time equivalent employees in 2020 compared with 2019. These closures also lowered occupancy expenses year over year, which declined $103,000, from $930,000 in the first quarter of 2019 to $827,000 in the first quarter of 2020. FDIC assessment of $125,000 in the first quarter of 2020 was a year-over-year decrease of $25,000. Offsetting these decreases were an increase in other operating expenses of $82,000, an increase of $24,000 in data processing expenses and an increase of $14,000 in other real estate expenses, net.
The following table compares the Company's other operating expenses included in noninterest expenses for the three months ended March 31, 2020, December 31, 2019 and March 31, 2019.
|
OTHER OPERATING EXPENSES (Unaudited) |
| (Dollars in thousands) | For the three months ended | |||||||||||
| 31-Mar-20 | 31-Dec-19 | 31-Mar-19 | ||||||||||
| Bank franchise tax | $ | 237 | $ | 220 | $ | 220 | ||||||
| Stationery, printing and supplies | 169 | 155 | 167 | |||||||||
| Marketing expense | 96 | 89 | 170 | |||||||||
| Credit expense | 178 | 86 | 63 | |||||||||
| Outside vendor fees | 237 | 223 | 139 | |||||||||
| Other expenses | 603 | 668 | 679 | |||||||||
| Total other operating expenses | $ | 1,520 | $ | 1,441 | $ | 1,438 | ||||||
Income Taxes
Income tax expense was $264,000 for the three months ended March 31, 2020, compared with income tax expense of $878,000 and $796,000 for the fourth and first quarters of 2019, respectively. The effective tax rate for the first quarter of 2020 was 15.7% compared with 17.8% in the fourth quarter of 2019 and 18.5% for the first quarter of 2019. The decrease in the effective tax rate is a product of a higher percentage of tax free municipal income along with tax credits’ representing a higher percentage of overall tax expense for the first quarter.
FINANCIAL CONDITION
Total assets increased $22.7 million, or 1.6%, to $1.454 billion at March 31, 2020 when compared to December 31, 2019. Total assets increased $55.0 million, or 3.9%, since March 31, 2019. Total loans, excluding PCI loans, were $1.079 billion at March 31, 2020, increasing $20.9 million, or 2.0%, from year end 2019 and $81.2 million, or 8.1%, from March 31, 2019. Total PCI loans were $30.3 million at March 31, 2020 versus $32.5 million at the prior quarter end and $36.8 million at March 31, 2019.
| 5 |
Commercial real estate loans, the largest category of loans at $410.4 million, or 38.0% of gross loans outstanding, increased $13.6 million during the first quarter of 2020. Commercial loans grew $7.4 million and were $198.5 million at March 31, 2020. Multifamily loans, totaling $76.2 million, or 7.1% of total loans, increased $3.2 million during the first quarter of 2020. Construction and land development loans, totaling $149.8 million, grew by $3.3 million, or 2.2%. Residential 1 – 4 family loans declined by $3.8 million and ended the period at $219.7 million, or 20.4% of the portfolio. Agriculture loans secured by real estate declined by $1.3 million, or 15.7%, and totaled $7.0 million at March 31, 2020. Consumer installment loans decreased $717,000 during the first quarter of 2020, and second mortgages decreased $685,000 during the period.
The following table shows the composition of the Company's loan portfolio, excluding PCI loans, at March 31, 2020, December 31, 2019 and March 31, 2019.
|
LOANS (excluding PCI loans) (Unaudited) |
| (Dollars in thousands) | 31-Mar-20 | 31-Dec-19 | 31-Mar-19 | |||||||||||||||||||||
| Amount | % of Loans | Amount | % of Loans | Amount | % of Loans | |||||||||||||||||||
| Mortgage loans on real estate: | ||||||||||||||||||||||||
| Residential 1-4 family | 219,735 | 20.36 | % | 223,538 | 21.12 | % | 215,348 | 21.58 | % | |||||||||||||||
| Commercial | 410,438 | 38.03 | 396,858 | 37.50 | 379,112 | 37.99 | ||||||||||||||||||
| Construction and land development | 149,833 | 13.88 | 146,566 | 13.85 | 123,475 | 12.37 | ||||||||||||||||||
| Second mortgages | 5,954 | 0.55 | 6,639 | 0.63 | 6,966 | 0.70 | ||||||||||||||||||
| Multifamily | 76,206 | 7.06 | 72,978 | 6.90 | 57,931 | 5.81 | ||||||||||||||||||
| Agriculture | 7,038 | 0.65 | 8,346 | 0.79 | 10,780 | 1.08 | ||||||||||||||||||
| Total real estate loans | 869,204 | 80.53 | 854,925 | 80.79 | 793,612 | 79.53 | ||||||||||||||||||
| Commercial loans | 198,544 | 18.40 | 191,183 | 18.06 | 190,832 | 19.12 | ||||||||||||||||||
| Consumer installment loans | 10,446 | 0.97 | 11,163 | 1.05 | 11,923 | 1.19 | ||||||||||||||||||
| All other loans | 1,035 | 0.10 | 1,052 | 0.10 | 1,615 | 0.16 | ||||||||||||||||||
| Gross loans | 1,079,229 | 100.00 | % | 1,058,323 | 100.00 | % | 997,982 | 100.00 | % | |||||||||||||||
| Allowance for loan losses | (11,819 | ) | (8,429 | ) | (8,661 | ) | ||||||||||||||||||
| Loans, net of unearned income | $ | 1,067,410 | $ | 1,049,894 | $ | 989,321 | ||||||||||||||||||
The Company’s securities portfolio, excluding restricted equity securities, increased $4.7 million since year end 2019 to $227.4 million at March 31, 2020. U.S. Treasury issues increased by $7.5 million during the first quarter of 2020. Corporate securities increased by $6.2 million during the period, while state, county and municipal securities available-for-sale increased by $3.6 million. Offsetting these increases was a decrease of $10.0 million in U.S. Government agency securities held-to-maturity. Securities balances declined $14.2 million since March 31, 2019. Net losses of $39,000 were recognized during the first quarter of 2020 compared with $39,000 in net losses in the fourth quarter of 2019 and $14,000 in net losses in the first quarter of 2019. The Company actively manages the portfolio to improve its liquidity and maximize the return within the desired risk profile.
The Company had cash and cash equivalents of $30.4 million, $28.7 million and $35.8 million at March 31, 2020, December 31, 2019 and March 31, 2019, respectively. There were federal funds purchased of $24.4 million at December 31, 2019 with no federal funds purchased or sold at either of March 31, 2020 or 2019. Interest bearing bank balances were $15.0 million at March 31, 2020 compared with $11.7 million at December 31, 2019 and $19.0 million at March 31, 2019.
The following table shows the composition of the Company's securities portfolio, excluding equity securities, restricted, at March 31, 2020, December 31, 2019 and March 31, 2019.
| SECURITIES PORTFOLIO |
| (Unaudited) | ||||||||||||||||||||||||
| (Dollars in thousands) | 31-Mar-20 | 31-Dec-19 | 31-Mar-19 | |||||||||||||||||||||
| Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
| Securities Available for Sale | ||||||||||||||||||||||||
| U.S. Treasury issue | $ | 7,497 | $ | 7,500 | $ | - | $ | - | $ | 11,982 | $ | 11,748 | ||||||||||||
| U.S. Government agencies | 21,452 | 20,804 | 22,104 | 21,936 | 23,949 | 23,848 | ||||||||||||||||||
| State, county, and municipal | 98,168 | 102,189 | 95,467 | 98,592 | 110,171 | 111,932 | ||||||||||||||||||
| Mortgage backed securities | 45,118 | 46,997 | 48,045 | 48,740 | 41,342 | 41,293 | ||||||||||||||||||
| Asset backed securities | 13,568 | 12,926 | 11,637 | 11,604 | 5,222 | 5,270 | ||||||||||||||||||
| Corporate | 12,388 | 12,295 | 6,016 | 6,097 | 6,002 | 6,003 | ||||||||||||||||||
| Total securities available for sale | $ | 198,191 | $ | 202,711 | $ | 183,269 | $ | 186,969 | $ | 198,668 | $ | 200,094 | ||||||||||||
| 6 |
| 31-Mar-20 | 31-Dec-19 | 31-Mar-19 | ||||||||||||||||||||||
| Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
| Securities Held to Maturity | ||||||||||||||||||||||||
| U.S. Government agencies | $ | - | $ | - | $ | 10,000 | $ | 9,988 | $ | 10,000 | $ | 9,859 | ||||||||||||
| State, county, and municipal | 24,649 | 25,485 | 25,733 | 26,645 | 31,458 | 32,186 | ||||||||||||||||||
| Mortgage backed securities | - | - | - | - | - | - | ||||||||||||||||||
| Total securities held to maturity | $ | 24,649 | 25,485 | $ | 35,733 | 36,633 | $ | 41,458 | $ | 42,045 | ||||||||||||||
Interest bearing deposits at March 31, 2020 were $1.033 billion, an increase of $47.9 million, or 4.9%, from December 31, 2019 and $30.3 million, or 3.0%, greater than at March 31, 2019. Time deposits less than or equal to $250,000 increased by $29.3 million, or 6.1%, during the first quarter of 2020, the largest increase in the deposit categories. There were also increases of $17.5 million, or 14.7%, in time deposits over $250,000, $2.8 million in savings account balances and $2.6 million in money market deposit accounts. Interest-bearing checking accounts (formerly NOW accounts) declined $4.4 million during the first quarter of 2020 and were the only deposit category to decline.
The following table compares the mix of interest bearing deposits at March 31, 2020, December 31, 2019 and March 31, 2019.
|
INTEREST BEARING DEPOSITS (Unaudited) (Dollars in thousands) |
| 31-Mar-20 | 31-Dec-19 | 31-Mar-19 | ||||||||||
| Interest bearing checking | $ | 166,163 | $ | - | $ | - | ||||||
| NOW | - | 170,532 | 151,647 | |||||||||
| MMDA | 123,455 | 120,841 | 123,024 | |||||||||
| Savings | 99,394 | 96,570 | 94,229 | |||||||||
| Time deposits less than or equal to $250,000 | 506,739 | 477,461 | 499,698 | |||||||||
| Time deposits over $250,000 | 136,980 | 119,460 | 133,817 | |||||||||
| Total interest bearing deposits | $ | 1,032,731 | $ | 984,864 | $ | 1,002,415 | ||||||
FHLB advances were $58.3 million at March 31, 2020, compared with $68.5 million at December 31, 2019 and $69.1 million at March 31, 2019. The decrease of $10.2 million in FHLB advances and $24.4 million in Federal funds purchased in the first quarter of 2020 was replaced with strong retail deposit growth of $57.6 million.
Shareholders’ equity was $155.5 million at March 31, 2020, $155.5 million at December 31, 2019 and $142.3 million at March 31, 2019. Shareholders equity to assets was 10.7% at March 31, 2020, 10.9% December 31, 2019 and 10.2% at March 31, 2019. On January 22, 2020, the Company announced a share repurchase program of up to 1,000,000 shares of its common stock. During the first quarter of 2020, the Company repurchased 115,800 shares of common stock at a total cost of $809,242. The Company evaluates the value of the common stock and capital for regulatory purposes when considering repurchases under the program and, as a result, is not currently making any repurchases in the current economic environment.
Asset Quality – excluding PCI loans
Nonperforming loans were $5.2 million at March 31, 2020, a $1.1 million decrease from $6.2 million at December 31, 2019. The decrease was primarily from a reduction of $946,000 in loans past due 90 days and accruing interest. Total non-performing assets totaled $9.7 million at March 31, 2020 compared with $10.8 million at December 31, 2019. Total nonperforming assets decreased $2.5 million, or 20.8%, since March 31, 2019. There were net recoveries of $90,000 in the first quarter of 2020, net charge-offs of $164,000 in the fourth quarter of 2019 and net charge-offs of $322,000 in the first quarter of 2019.
The allowance for loan losses equaled 228.5% of nonaccrual loans at March 31, 2020, compared with 159.3% at December 31, 2019 and 78.8% at March 31, 2019. The ratio of nonperforming assets to loans and other real estate owned (OREO) was 0.89% at March 31, 2020 compared with 1.01% at December 31, 2019 and 1.22% at March 31, 2019.
| 7 |
The following table reconciles the activity in the Company's allowance for loan losses, by quarter, for the past five quarters.
|
ALLOWANCE FOR LOAN LOSSES (Unaudited) |
| (Dollars in thousands) | 2020 | 2019 | ||||||||||||||||||
| First | Fourth | Third | Second | First | ||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
| Allowance for loan losses: | ||||||||||||||||||||
| Beginning of period | $ | 8,429 | $ | 8,393 | $ | 8,819 | $ | 8,661 | $ | 8,983 | ||||||||||
| Provision for loan losses | 3,300 | 200 | - | 125 | - | |||||||||||||||
| Net (charge-offs) recoveries | 90 | (164 | ) | (426 | ) | 33 | (322 | ) | ||||||||||||
| End of period | $ | 11,819 | $ | 8,429 | $ | 8,393 | $ | 8,819 | $ | 8,661 | ||||||||||
The following table sets forth selected asset quality data, excluding PCI loans, and ratios for the dates indicated.
|
ASSET QUALITY (excluding PCI loans) (Unaudited) |
| (Dollars in thousands) | 2020 | 2019 | ||||||||||||||||||
| 31-Mar-20 | 31-Dec-19 | 30-Sep-19 | 30-Jun-19 | 31-Mar-19 | ||||||||||||||||
| Nonaccrual loans | $ | 5,172 | $ | 5,292 | $ | 5,746 | $ | 11,045 | $ | 10,990 | ||||||||||
| Loans past due 90 days and accruing interest | - | 946 | - | - | - | |||||||||||||||
| Total nonperforming loans | 5,172 | 6,238 | 5,746 | 11,045 | 10,990 | |||||||||||||||
| Other real estate owned | 4,506 | 4,527 | 4,740 | 983 | 1,225 | |||||||||||||||
| Total nonperforming assets | $ | 9,678 | $ | 10,765 | $ | 10,486 | $ | 12,028 | $ | 12,215 | ||||||||||
| Allowance for loan losses to loans | 1.10 | 0.80 | 0.81 | 0.86 | 0.87 | % | ||||||||||||||
| Allowance for loan losses to nonaccrual loans | 228.52 | 159.28 | 146.10 | 79.85 | 78.81 | |||||||||||||||
| Nonperforming assets to loans and other real estate | 0.89 | 1.01 | 1.01 | 1.17 | 1.22 | |||||||||||||||
| Net charge-offs/(recoveries) for quarter to average loans, annualized | (0.03 | ) | 0.06 | 0.16 | (0.01 | ) | 0.13 | % | ||||||||||||
A further breakout of nonaccrual loans, excluding PCI loans, at March 31, 2020, December 31, 2019, and March 31, 2019 is below.
|
NONACCRUAL LOANS (excluding PCI loans) (Unaudited) (Dollars in thousands) |
| 31-Mar-20 | 31-Dec-19 | 31-Mar-19 | ||||||||||
| Mortgage loans on real estate: | ||||||||||||
| Residential 1-4 family | $ | 1,456 | $ | 1,378 | $ | 1,133 | ||||||
| Commercial | 657 | 1,006 | 1,299 | |||||||||
| Construction and land development | 1,778 | 376 | 4,101 | |||||||||
| Multi-family | - | 2,463 | 2,552 | |||||||||
| Total real estate loans | $ | 3,891 | $ | 5,223 | $ | 9,085 | ||||||
| Commercial loans | 1,270 | 62 | 1,899 | |||||||||
| Consumer installment loans | 11 | 7 | 6 | |||||||||
| Gross loans | $ | 5,172 | $ | 5,292 | $ | 10,990 | ||||||
Capital Requirements
The Bank’s ratio of total risk-based capital was 13.9% at March 31, 2020 compared with 13.9% at December 31, 2019. The tier 1 risk-based capital ratio was 12.9% at March 31, 2020 and 13.2% at December 31, 2019. The Bank’s tier 1 leverage ratio was 10.9% at March 31, 2020 and 11.0% at December 31, 2019. All capital ratios exceed regulatory minimums to be considered well capitalized. BASEL III introduced the common equity tier 1 capital ratio, which was 12.9% at March 31, 2020 and 13.2% at December 31, 2019.
Earnings Conference Call and Webcast
The Company will host a conference call for interested parties on Friday, April 24, 2020, at 10:00 a.m. Eastern Time to discuss the financial results for the first quarter of 2020. The public is invited to listen to this conference call by dialing 866-374-8379 at least five minutes prior to the call. Interested parties may also listen to this conference call through the internet by accessing the "Corporate Overview – Corporate Profile" page of the Company's internet site at www.cbtrustcorp.com.
| 8 |
A replay of the conference call will be available from 12:00 noon Eastern Time on April 24, 2020, until 9:00 a.m. Eastern Time on May 15, 2020. The replay will be available by dialing 877-344-7529 and entering access code 10142422 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; the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts or public health events (such as the current COVID-19 pandemic), and of governmental and societal responses to them; the interest rate environment; competitive pressures among banks and financial institutions or from companies outside the banking industry; real estate values; the demand for deposit, loan and investment products and other financial services; the demand, development and acceptance of new products and services; the performance of vendors or other parties with which the Company does business; time and costs associated with de novo branching, acquisitions, dispositions and similar transactions; the realization of gains and expense savings from acquisitions, dispositions and similar transactions; consumer profiles and spending and savings habits; levels of fraud in the banking industry; the level of attempted cyber-attacks in the banking industry; the securities and credit markets; costs associated with the integration of banking and other internal operations; the soundness of other financial institutions with which the Company does business; inflation; technology; and legislative and regulatory requirements. Many of these factors and additional risks and uncertainties are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and other reports filed from time to time by the Company with the Securities and Exchange Commission. This press release speaks only as of its date, and the Company disclaims any duty to update the information in it.
Contact: Bruce E. Thomas
Executive Vice President/Chief Financial Officer
Community Bankers Trust Corporation
804-934-9999
| 9 |
|
COMMUNITY BANKERS TRUST CORPORATION CONSOLIDATED BALANCE SHEETS UNAUDITED (Dollars in thousands, except per share data) |
| 31-Mar-20 | 31-Dec-19 | 31-Mar-19 | ||||||||||
| Assets | ||||||||||||
| Cash and due from banks | $ | 15,406 | $ | 16,976 | $ | 16,809 | ||||||
| Interest bearing bank deposits | 14,960 | 11,708 | 18,997 | |||||||||
| Total cash and cash equivalents | 30,366 | 28,684 | 35,806 | |||||||||
| Securities available for sale, at fair value | 202,711 | 186,969 | 200,094 | |||||||||
| Securities held to maturity, at cost | 24,649 | 35,733 | 41,458 | |||||||||
| Equity securities, restricted, at cost | 8,458 | 8,855 | 8,426 | |||||||||
| Total securities | 235,818 | 231,557 | 249,978 | |||||||||
| Loans held for resale | 2,470 | 501 | 396 | |||||||||
| Loans | 1,079,229 | 1,058,323 | 997,982 | |||||||||
| Purchased credit impaired (PCI) loans | 30,275 | 32,528 | 36,803 | |||||||||
| Allowance for loan losses | (11,819 | ) | (8,429 | ) | (8,661 | ) | ||||||
| Allowance for loan losses – PCI loans | (156 | ) | (156 | ) | (156 | ) | ||||||
| Net loans | 1,097,529 | 1,082,266 | 1,025,968 | |||||||||
| Bank premises and equipment, net | 29,065 | 29,472 | 31,142 | |||||||||
| Bank premises and equipment held for sale | 1,589 | 1,589 | 1,252 | |||||||||
| Right-of-use leased assets | 6,234 | 6,472 | 7,177 | |||||||||
| Other real estate owned | 4,506 | 4,527 | 1,225 | |||||||||
| Bank owned life insurance | 29,514 | 29,340 | 29,015 | |||||||||
| Other assets | 16,449 | 16,432 | 16,538 | |||||||||
| Total assets | $ | 1,453,540 | $ | 1,430,840 | $ | 1,398,497 | ||||||
| Liabilities | ||||||||||||
| Deposits: | ||||||||||||
| Noninterest bearing | $ | 188,327 | $ | 178,584 | $ | 165,708 | ||||||
| Interest bearing | 1,032,731 | 984,864 | 1,002,415 | |||||||||
| Total deposits | 1,221,058 | 1,163,448 | 1,168,123 | |||||||||
| Federal funds purchased | - | 24,437 | - | |||||||||
| Federal Home Loan Bank borrowings | 58,333 | 68,500 | 69,072 | |||||||||
| Trust preferred capital notes | 4,124 | 4,124 | 4,124 | |||||||||
| Lease liabilities | 6,513 | 6,737 | 7,418 | |||||||||
| Other liabilities | 8,044 | 8,115 | 7,452 | |||||||||
| Total liabilities | 1,298,072 | 1,275,361 | 1,256,189 | |||||||||
| Shareholders' Equity | ||||||||||||
| Common stock (200,000,000 shares authorized $0.01 par value; 22,317,420, 22,422,621 and 22,168,979 shares issued and outstanding, respectively) | 223 | 224 | 222 | |||||||||
| Additional paid in capital | 150,219 | 150,728 | 149,115 | |||||||||
| Retained earnings (deficit) | 2,856 | 2,562 | (7,406 | ) | ||||||||
| Accumulated other comprehensive income | 2,170 | 1,965 | 377 | |||||||||
| Total shareholders' equity | 155,468 | 155,479 | 142,308 | |||||||||
| Total liabilities and shareholders' equity | $ | 1,453,540 | $ | 1,430,840 | $ | 1,398,497 | ||||||
| 10 |
|
COMMUNITY BANKERS TRUST CORPORATION CONSOLIDATED STATEMENTS OF INCOME UNAUDITED |
| (Dollars in thousands) | Three months ended | |||||||||||||||||||
| 31-Mar-20 | 31-Dec-19 | 30-Sep-19 | 30-Jun-19 | 31-Mar-19 | ||||||||||||||||
| Interest and dividend income | ||||||||||||||||||||
| Interest and fees on loans | $ | 13,086 | $ | 13,305 | $ | 13,187 | $ | 12,640 | $ | 12,419 | ||||||||||
| Interest and fees on PCI loans | 1,097 | 1,165 | 2,333 | 1,251 | 1,293 | |||||||||||||||
| Interest on federal funds sold | - | - | 9 | 5 | - | |||||||||||||||
| Interest on deposits in other banks | 69 | 91 | 87 | 117 | 96 | |||||||||||||||
| Interest and dividends on securities | ||||||||||||||||||||
| Taxable | 1,351 | 1,387 | 1,489 | 1,472 | 1,522 | |||||||||||||||
| Nontaxable | 343 | 329 | 355 | 421 | 476 | |||||||||||||||
| Total interest and dividend income | 15,946 | 16,277 | 17,460 | 15,906 | 15,806 | |||||||||||||||
| Interest expense | ||||||||||||||||||||
| Interest on deposits | 3,419 | 3,515 | 3,698 | 3,589 | 3,234 | |||||||||||||||
| Interest on borrowed funds | 289 | 349 | 343 | 317 | 447 | |||||||||||||||
| Total interest expense | 3,708 | 3,864 | 4,041 | 3,906 | 3,681 | |||||||||||||||
| Net interest income | 12,238 | 12,413 | 13,419 | 12,000 | 12,125 | |||||||||||||||
| Provision for loan losses | 3,300 | 200 | - | 125 | - | |||||||||||||||
| Net interest income after provision for loan losses | 8,938 | 12,213 | 13,419 | 11,875 | 12,125 | |||||||||||||||
| Noninterest income | ||||||||||||||||||||
| Service charges and fees | 672 | 757 | 758 | 707 | 609 | |||||||||||||||
| Gain (loss) on securities transactions, net | (39 | ) | (39 | ) | 50 | 238 | (14 | ) | ||||||||||||
| Gain on sale of loans | 11 | 14 | - | - | - | |||||||||||||||
| Income on bank owned life insurance | 174 | 178 | 181 | 184 | 181 | |||||||||||||||
| Mortgage loan income | 221 | 148 | 176 | 100 | 62 | |||||||||||||||
| Other | 296 | 320 | 346 | 222 | 176 | |||||||||||||||
| Total noninterest income | 1,335 | 1,378 | 1,511 | 1,451 | 1,014 | |||||||||||||||
| Noninterest expense | ||||||||||||||||||||
| Salaries and employee benefits | 5,152 | 5,480 | 5,289 | 5,273 | 5,381 | |||||||||||||||
| Occupancy expenses | 827 | 791 | 813 | 919 | 930 | |||||||||||||||
| Equipment expenses | 372 | 332 | 377 | 394 | 381 | |||||||||||||||
| FDIC assessment | 125 | (20 | ) | 4 | 162 | 150 | ||||||||||||||
| Data processing fees | 592 | 588 | 594 | 579 | 568 | |||||||||||||||
| Other real estate expenses, net | 6 | 56 | 565 | 105 | (8 | ) | ||||||||||||||
| Other operating expenses | 1,520 | 1,441 | 1,588 | 1,559 | 1,438 | |||||||||||||||
| Total noninterest expense | 8,594 | 8,668 | 9,230 | 8,991 | 8,840 | |||||||||||||||
| Income before income taxes | 1,679 | 4,923 | 5,700 | 4,335 | 4,299 | |||||||||||||||
| Income tax expense | 264 | 878 | 1,087 | 791 | 796 | |||||||||||||||
| Net income | $ | 1,415 | $ | 4,045 | $ | 4,613 | $ | 3,544 | $ | 3,503 | ||||||||||
| 11 |
|
COMMUNITY BANKERS TRUST CORPORATION NET INTEREST MARGIN ANALYSIS AVERAGE BALANCE SHEETS (Unaudited) (Dollars in thousands) |
| Three months ended March 31, 2020 | Three months ended December 31, 2019 | |||||||||||||||||||||||
| Average Balance Sheet | Interest Income / Expense | Average Paid | Average Balance Sheet | Interest Income / Expense | Average Rates Earned / Paid | |||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||
| Loans, including fees | $ | 1,065,268 | $ | 13,086 | 4.93 | % | $ | 1,047,069 | $ | 13,305 | 5.04 | % | ||||||||||||
| PCI loans, including fees | 31,311 | 1,097 | 13.87 | 33,331 | 1,165 | 13.68 | ||||||||||||||||||
| Total loans | 1,096,579 | 14,183 | 5.19 | 1,080,400 | 14,470 | 5.31 | ||||||||||||||||||
| Interest bearing bank balances | 16,455 | 69 | 1.68 | 16,644 | 91 | 2.16 | ||||||||||||||||||
| Federal funds sold | 141 | - | 1.06 | 90 | - | 1.66 | ||||||||||||||||||
| Securities (taxable) | 182,340 | 1,351 | 2.96 | 182,887 | 1,387 | 3.03 | ||||||||||||||||||
| Securities (tax exempt)(1) | 49,391 | 435 | 3.52 | 46,163 | 416 | 3.60 | ||||||||||||||||||
| Total earning assets | 1,344,906 | 16,038 | 4.78 | 1,326,184 | 16,364 | 4.90 | ||||||||||||||||||
| Allowance for loan losses | (8,621 | ) | (8,513 | ) | ||||||||||||||||||||
| Non-earning assets | 105,540 | 105,654 | ||||||||||||||||||||||
| Total assets | $ | 1,441,825 | $ | 1,423,325 | ||||||||||||||||||||
| LIABILITIES AND | ||||||||||||||||||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
| Demand - interest bearing | $ | 170,279 | $ | 94 | 0.22 | $ | 162,449 | $ | 88 | 0.22 | ||||||||||||||
| Savings and money market | 219,661 | 280 | 0.51 | 224,636 | 337 | 0.60 | ||||||||||||||||||
| Time deposits | 632,664 | 3,045 | 1.93 | 608,560 | 3,090 | 2.01 | ||||||||||||||||||
| Total interest bearing deposits | 1,022,604 | 3,419 | 1.34 | 995,645 | 3,515 | 1.40 | ||||||||||||||||||
| Short-term borrowings | 4,185 | 23 | 2.20 | 5,462 | 29 | 2.10 | ||||||||||||||||||
| FHLB and other borrowings | 66,796 | 266 | 1.58 | 68,602 | 320 | 1.82 | ||||||||||||||||||
| Total interest bearing liabilities | 1,093,585 | 3,708 | 1.36 | 1,069,709 | 3,864 | 1.43 | ||||||||||||||||||
| Noninterest bearing deposits | 175,871 | 183,787 | ||||||||||||||||||||||
| Other liabilities | 14,184 | 14,502 | ||||||||||||||||||||||
| Total liabilities | 1,283,640 | 1,267,998 | ||||||||||||||||||||||
| Shareholders’ equity | 158,185 | 155,327 | ||||||||||||||||||||||
| Total liabilities and | ||||||||||||||||||||||||
| shareholders’ equity | $ | 1,441,825 | $ | 1,423,325 | ||||||||||||||||||||
| Net interest earnings | $ | 12,330 | $ | 12,500 | ||||||||||||||||||||
| Interest spread | 3.42 | % | 3.47 | % | ||||||||||||||||||||
| Net interest margin | 3.68 | % | 3.74 | % | ||||||||||||||||||||
| Tax-equivalent adjustment: | ||||||||||||||||||||||||
| Securities | 92 | 86 | ||||||||||||||||||||||
| (1) | Income and yields are reported on a tax-equivalent basis assuming a federal tax rate of 21%. |
| 12 |
|
COMMUNITY BANKERS TRUST CORPORATION NET INTEREST MARGIN ANALYSIS AVERAGE BALANCE SHEETS (Unaudited) (Dollars in thousands) |
| Three months ended March 31, 2020 | Three months ended March 31, 2019 | |||||||||||||||||||||||
| Average Balance Sheet | Interest Income / Expense | Average Rates Earned / Paid | Average Balance Sheet | Interest Income / Expense | Average Rates Earned / Paid | |||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||
| Loans, including fees | $ | 1,065,268 | $ | 13,086 | 4.93 | % | $ | 999,047 | $ | 12,419 | 5.04 | % | ||||||||||||
| PCI loans, including fees | 31,311 | 1,097 | 13.87 | 37,783 | 1,293 | 13.69 | ||||||||||||||||||
| Total loans | 1,096,579 | 14,183 | 5.19 | 1,036,830 | 13,712 | 5.36 | ||||||||||||||||||
| Interest bearing bank balances | 16,455 | 69 | 1.68 | 14,376 | 96 | 2.70 | ||||||||||||||||||
| Federal funds sold | 141 | - | 1.06 | 55 | - | 2.41 | ||||||||||||||||||
| Securities (taxable) | 182,340 | 1,351 | 2.96 | 186,370 | 1,522 | 3.27 | ||||||||||||||||||
| Securities (tax exempt)(1) | 49,391 | 435 | 3.52 | 67,211 | 603 | 3.59 | ||||||||||||||||||
| Total earning assets | 1,344,906 | 16,038 | 4.78 | 1,304,842 | 15,933 | 4.95 | ||||||||||||||||||
| Allowance for loan losses | (8,621 | ) | (9,084 | ) | ||||||||||||||||||||
| Non-earning assets | 105,540 | 96,770 | ||||||||||||||||||||||
| Total assets | $ | 1,441,825 | $ | 1,392,528 | ||||||||||||||||||||
| LIABILITIES AND | ||||||||||||||||||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
| Demand - interest bearing | $ | 170,279 | $ | 94 | 0.22 | $ | 157,773 | $ | 87 | 0.22 | ||||||||||||||
| Savings and money market | 219,661 | 280 | 0.51 | 220,945 | 293 | 0.54 | ||||||||||||||||||
| Time deposits | 632,664 | 3,045 | 1.93 | 623,417 | 2,854 | 1.86 | ||||||||||||||||||
| Total interest bearing deposits | 1,022,604 | 3,419 | 1.34 | 1,002,135 | 3,234 | 1.31 | ||||||||||||||||||
| Short-term borrowings | 4,185 | 23 | 2.20 | 6,837 | 50 | 2.94 | ||||||||||||||||||
| FHLB and other borrowings | 66,796 | 266 | 1.58 | 73,214 | 397 | 2.17 | ||||||||||||||||||
| Total interest bearing liabilities | 1,093,585 | 3,708 | 1.36 | 1,082,186 | 3,681 | 1.38 | ||||||||||||||||||
| Noninterest bearing deposits | 175,871 | 160,496 | ||||||||||||||||||||||
| Other liabilities | 14,184 | 9,974 | ||||||||||||||||||||||
| Total liabilities | 1,283,640 | 1,252,656 | ||||||||||||||||||||||
| Shareholders’ equity | 158,185 | 139,872 | ||||||||||||||||||||||
| Total liabilities and | ||||||||||||||||||||||||
| shareholders’ equity | $ | 1,441,825 | $ | 1,392,528 | ||||||||||||||||||||
| Net interest earnings | $ | 12,330 | $ | 12,252 | ||||||||||||||||||||
| Interest spread | 3.42 | % | 3.57 | % | ||||||||||||||||||||
| Net interest margin | 3.68 | % | 3.81 | % | ||||||||||||||||||||
| Tax-equivalent adjustment: | ||||||||||||||||||||||||
| Securities | $ | 92 | $ | 127 | ||||||||||||||||||||
| (1) | Income and yields are reported on a tax-equivalent basis assuming a federal tax rate of 21%. |
| 13 |