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Community Bankers Trust Corporation Reports Results for Third Quarter of 2018

Net income of $4.0 million in the third quarter of 2018 is an increase of $1.5 million, or 63.7%, over the third quarter of 2017. Nine month 2018 net income is an increase of $2.5 million, or 31.7%, over 2017.

Conference Call on Friday, October 26, 2018, at 10:00 a.m. Eastern Time

Company Release - 10/26/2018 6:00 AM ET

RICHMOND, Va., Oct. 26, 2018 /PRNewswire/ -- Community Bankers Trust Corporation (the "Company") (NASDAQ: ESXB), the holding company for Essex Bank (the "Bank"), today reported results for the third quarter and nine months ended September 30, 2018.

Community Bankers Trust Corporation logo. (PRNewsFoto/Community Bankers Trust Corporation) (PRNewsfoto/COMMUNITY BANKERS TRUST CORP.)

Income Statement- Three Months ended September 30, 2018 compared with Three Months ended June 30, 2018

  • Net income of $4.0 million for the third quarter of 2018 is an increase of $173,000, or 4.6%, on a linked quarter basis.
  • Interest and dividend income increased $634,000, or 4.4%.
  • Net interest income increased $333,000, or 2.9%.
  • Noninterest income increased $76,000, or 6.7%.
  • Basic earnings per common share were $0.18 in the third quarter compared with $0.17 in the second quarter.
  • Return on average assets, annualized, was 1.16% and return on average equity, annualized, was 12.08% in the third quarter.

Income Statement- Nine Months ended September 30, 2018 compared with Nine Months ended September 30, 2017

  • Net income of $10.3 million is an increase of $2.5 million, or 31.7%.
  • Income before income taxes increased $2.1 million, or 19.9%.
  • Interest and dividend income of $43.7 million is an increase of $4.2 million, or 10.6%.
  • Interest and fees on loans increased $4.4 million, or 15.0%.
  • Net interest income increased $2.2 million, or 6.8%.
  • Return on average assets, annualized, was 1.02% and return on average equity, annualized, was 10.79% for the first nine months of 2018 compared with 0.82% and 8.69%, respectively, for the first nine months of 2017.
  • Year-to-date 2018 basic earnings per common share were $0.47 compared with $0.36 for the same period in 2017.

Income Statement- Three Months ended September 30, 2018 compared with Three Months ended September 30, 2017

  • Net income of $4.0 million for the third quarter of 2018 is an increase year-over-year of $1.5 million, or 63.7%.
  • Income before income taxes increased $1.6 million, or 46.9%.
  • Interest and dividend income increased $1.8 million, or 13.1%, in the third quarter of 2018 over the same period in 2017, led by interest and fees on loans, which increased $1.8 million, or 17.4%.
  • Net interest income after provision for loan losses increased $1.1 million, or 10.2%, year-over-year.
  • Noninterest income increased year-over-year by 21.3%, or $213,000.
  • Noninterest expenses declined year-over-year by 2.9%, or $248,000.

Balance Sheet- Year-over-year- September 30, 2018 compared with September 30, 2017

  • Loans grew $72.4 million, or 8.1%, from $890.0 million at September 30, 2017 to $962.4 million at September 30, 2018.
  • Noninterest bearing deposits grew $13.5 million, or 9.3%, year-over-year and totaled $158.9 million.
  • Deposits increased $55.5 million, or 5.1%, year-over-year.
  • NOW accounts increased $9.5 million, or 6.9%, from September 30, 2017 to September 30, 2018.
  • Nonaccrual loans of $8.9 million at September 30, 2018 declined $3.8 million, or 29.8%, from one year ago.

MANAGEMENT COMMENTS 

Rex L. Smith, III, President and Chief Executive Officer, stated, "The third quarter showed a continuation of many of the positive trends we saw in the first half of 2018.  While loan growth year to date remains well below what we experienced in previous years, it is in line with the trends we see in most banks.  Our conservative approach to loan pricing and credit quality has allowed us to increase our margin and continue growth of low cost deposits.  Our branches, specifically our newer ones, are gaining good deposit momentum, which has allowed us to significantly pay down our wholesale fundings and increase our noninterest bearing deposit base."

Smith added, "Our disciplined approach to balance sheet management continues to pay off in the rising rate environment.  It shows in most of the major metrics of the Company including asset quality, net interest margin and return on total assets. Our earnings year to date are the highest they have been in the history of the Company."

Smith concluded, "We continue to focus on total return for our shareholders and will remain disciplined in our growth in all areas.  Given our balance sheet and the current rate environment, we remain optimistic for continued positive trends for the rest of 2018 and 2019."

RESULTS OF OPERATIONS

Linked Quarter Basis
Net income was $4.0 million for the third quarter of 2018, compared with net income of $3.8 million in the second quarter of 2018.   Basic earnings per common share were $0.18 per share and $0.17 per share for the three months ended September 30, 2018 and June 30, 2018, respectively. Fully diluted earnings per share were $0.17 for each of the three months ended September 30, 2018 and June 30, 2018. The increase in net income of $173,000, or 4.6%, for the third quarter of 2018 compared with the second quarter of 2018, was primarily the result of a $634,000 increase in interest and dividend income, driven by an increase of $540,000, or 4.8%, in interest and fees on loans. Also positively influencing net income were an increase of $333,000 in net interest income after provision for loan losses and an increase of $76,000 in noninterest income. Offsetting these increases were increases of $104,000 in noninterest expenses and $132,000 in income tax expense.

Year-Over-Year Nine Months
Net income was $10.3 million for the first nine months of 2018 compared with $7.8 million for the same period in 2017. This is an increase of $2.5 million, or 31.7%. Increases were in interest and dividend income, which increased by $4.2 million, or 10.6%, and in noninterest income, which increased by $351,000, or 11.6%. Also positively affecting earnings were a reduction of $150,000 in the provision for loan losses and a decrease of $389,000 in income tax expense when comparing the two periods. Offsetting these increases to net income were an increase of $1.9 million in interest expense and an increase of $629,000 in noninterest expense.By comparing pre-tax income for the two periods, most of the effect of the Tax Cuts and Jobs Act of 2017 is eliminated. This comparison reflects that income before income taxes increased by $2.1 million, or 19.9%, for the first nine months of 2018 compared with the same period in 2017.

Year-Over-Year Quarter
Net income of $4.0 million for the third quarter of 2018 was an increase of $1.5 million, or 63.7%, over third quarter 2017 net income of $2.4 million. Pre-tax net income increased $1.6 million, or 46.9%, in the third quarter of 2018. Interest and dividend income increased by $1.8 million in the third quarter of 2018 compared with the same period in 2017, driven by interest and fees on loans, which increased $1.8 million. Noninterest income increased by $213,000 year-over-year, and noninterest expenses declined by $248,000. Offsetting these increases was an increase in income tax expense, which was $26,000 greater, year-over-year, based on the increase in pre-tax income but lessened by the reduction in the corporate tax rate, from 34% to 21%.

The following table presents summary income statements for the three months ended September 30, 2018, June 30, 2018, and September 30, 2017 and the nine months ended September 30, 2018 and September 30, 2017.

SUMMARY INCOME STATEMENT











(Unaudited)











(Dollars in thousands)


For the three months ended

For the nine months ended



30-Sep-18


30-Jun-18


30-Sep-17


30-Sep-18


30-Sep-17

Interest income

$

15,144

$

14,510

$

13,389

$

43,733

$

39,557

Interest expense


3,164


2,863


2,363


8,639


6,690

Net interest income


11,980


11,647


11,026


35,094


32,867

Provision for loan losses


-


-


150


-


150

Net interest income after provision for loan losses

11,980


11,647


10,876


35,094


32,717

Noninterest income


1,211


1,135


998


3,379


3,028

Noninterest expense


8,291


8,187


8,539


25,844


25,215

Income before income taxes


4,900


4,595


3,335


12,629


10,530

Income tax expense


945


813


919


2,298


2,687

Net income

$

3,955

$

3,782

$

2,416

$

10,331

$

7,843


EPS Basic

$

0.18

$

0.17

$

0.11

$

0.47

$

0.36

EPS Diluted

$

0.17

$

0.17

$

0.11

$

0.46

$

0.35


Return on average assets, annualized


1.16%


1.12%


0.75%


1.02%


0.82%

Return on average equity, annualized


12.08%


11.92%


7.80%


10.79%


8.69%

 

Net Interest Income

Linked Quarter Basis
Net interest income was $12.0 million for the quarter ended September 30, 2018 compared with $11.6 million for the quarter ended June 30, 2018.  This is an increase of $333,000, or 2.9%.

Interest income with respect to loans, excluding PCI loans, increased $540,000, or 4.8%, during the third quarter when compared with the second quarter of 2018.  This increase was attributed to an increase in the average balance of loans, excluding PCI loans, of $6.8 million during the third quarter of 2018 over the previous quarter, coupled with higher rates.  The yield on loans increased from 4.75% in the second quarter of 2018 to 4.89% in the third quarter of 2018. Interest income with respect to PCI loans was $1.3 million in each of the second and third quarters of 2018.  Interest income on securities increased $79,000 on a linked quarter basis. Interest on deposits in other banks increased $25,000 on a linked quarter basis primarily due to an increase in the return on those balances from 1.85% in the second quarter of 2018 to 2.45% in the third quarter of 2018.

Securities income was $2.0 million on a tax-equivalent basis for the third quarter of 2018, which was an increase of $74,000 from the second quarter of 2018.  The tax-equivalent yield on the securities portfolio was 3.21% in the third quarter of 2018 compared with a tax-equivalent yield of 3.11% in the second quarter of 2018.

Interest expense of $3.2 million in the third quarter of 2018 was an increase of $301,000, or 10.5%, on a linked quarter basis.  Interest on deposits increased $344,000, or 14.6%.  Interest on borrowed funds decreased by $43,000, or 8.5%.  Average balances for interest bearing deposits increased by $15.7 million, or 1.6%. However, the cost of these deposits increased from 0.99% in the second quarter of 2018 to 1.10% in the third quarter of 2018, resulting in a 10.5% increase in interest expense. The increased rates paid on interest bearing deposits and wholesale funding resulted in an increase in the cost of interest bearing liabilities from 1.08% in the second quarter of 2018 to 1.18% in the third quarter of 2018.

With the changes in interest income noted above, the tax-equivalent net interest margin increased from 3.73% in the second quarter of 2018 to 3.77% in the third quarter of 2018. Likewise, the interest spread increased from 3.56% to 3.58% on a linked quarter basis.

Year-Over-Year Nine Months
For the first nine months of 2018 compared with the same period in 2017, net interest income increased $2.2 million, or 6.8%, and was $35.1 million. The yield on earning assets was 4.67% for the first nine months of 2018 compared with 4.55% for the first nine months of 2017. Interest and fees on loans of $34.1 million in the first three quarters of 2018 was an increase of $4.4 million compared with $29.7 million for the same period in 2017.  Interest and fees on PCI loans declined $418,000 over this same time frame.  Securities income increased $88,000 for the first nine months of 2018 compared with the same period in 2017.  Interest on deposits in other banks increased $60,000 for the first three quarters of 2018 over the same period in 2017 primarily due to an increase in the return on those balances from 1.22% to 2.08% in 2018. On a tax-equivalent basis, income on securities decreased $402,000, primarily the result of less benefit on bank qualified municipal securities from the enactment in December 2017 of the Tax Cut and Jobs Act. The tax-equivalent yield on the portfolio was 3.10% for the first three quarters of 2018, based on a 21% tax rate, and 3.14% for the same period in 2017, based on a 34% tax rate.

Interest expense of $8.6 million represented an increase of $1.9 million in the first nine months of 2018 compared with the same period in 2017. Average interest bearing liabilities increased $50.9 million, or 5.0%, as loan growth has been fueled by an increase of $42.0 million, or 16.6%, in the average balance of demand - interest bearing accounts.  This has allowed more expensive time deposit balances to decrease, on average, by $11.4 million, or 2.0%, resulting in a $33.1 million increase in the average balance of total deposits.

The tax equivalent net interest margin declined from 3.80% for the first nine months of 2017 to 3.76% for the first nine months of 2018. While the yield on earning assets increased by 12 basis points over this time frame, the competition for funding has pushed the cost of interest bearing liabilities up, from 0.89% to 1.09%.  Likewise, the net interest spread declined and was 3.58% for the first nine months of 2018 versus 3.66% for the first nine months of 2017.

Year-Over-Year Quarter
Net interest income increased $954,000, or 8.7%, from the third quarter of 2017 to the third quarter of 2018. Net interest income was $12.0 million in the third quarter of 2018 compared with $11.0 million for the same period in 2017.  Interest and dividend income increased $1.8 million, or 13.1%, over this time period.  The increase in interest and dividend income was generated by an increase of $70.3 million, or 5.8%, in the level of earning assets.  The yield on earning assets increased from 4.51% in the third quarter of 2017 to 4.76% in the third quarter of 2018. The average balance of loans, excluding PCI loans, increased $96.3 million, or 11.1%, from $869.5 million in the third quarter of 2017 to $965.8 million in the third quarter of 2018.  Interest income on securities increased $119,000 and was $1.9 million in the third quarter of 2018 and $1.8 million in the third quarter of 2017. On a tax-equivalent basis, the yield on investment securities was 3.21% in the third quarter of 2018, based on a 21% tax rate, and 3.10% in the third quarter of 2017, based on a 34% tax rate.  Interest on deposits in the other banks increased by $29,000 in the third quarter of 2018 over the same period in 2017 primarily due to an increase in the return on those balances from 1.40% in 2017 to 2.45% in 2018.

Interest on PCI loans was $1.3 million in the third quarter of 2018 compared with $1.4 million in the third quarter of 2017.  The average balance of the PCI portfolio declined $7.7 million during the year-over-year comparison period.

Interest expense increased $801,000, or 33.9%, when comparing the third quarter of 2017 and the third quarter of 2018. Interest expense on deposits increased $646,000, or 31.5%, as the average balance of interest bearing deposits increased $33.5 million, or 3.6%.  The increase in deposit cost was driven by an increase in the average balance of demand – interest bearing accounts, which increased a combined $4.2 million year-over-year. Likewise, the cost of these balances increased $13,000, from 0.40% to 0.42%, over the same time frame. Higher cost time deposit average balances increased over the comparison period by $25.7 million, and expense on this category increased by $631,000, resulting in an increase in cost from 1.19% to 1.56%. The average balance of FHLB and other borrowings increased, on average, $13.1 million year-over-year, and there was an increase in the rate paid, from 1.57% in the third quarter of 2017 to 1.98% in the third quarter of 2018. This resulted in an increase in the expense of this wholesale funding source of $144,000, to $452,000 in the third quarter of 2018.  The average balance of FHLB and other borrowings was $90.8 million in the third quarter of 2018. Overall, the Bank's cost of interest bearing liabilities increased 26 basis points, from 0.92% in the third quarter of 2017 to 1.18% in the third quarter of 2018.

The tax-equivalent net interest margin increased three basis points, from 3.74% in the third quarter of 2018 to 3.77% in the third quarter of 2018.  The interest spread decreased from 3.59% to 3.58% over the same time period.  Net interest margin increased despite the decrease in interest spread because growth in the average balance of earning assets of $70.3 million was partially funded by growth in the average balance of noninterest bearing deposits of $18.9 million.

The following table compares the Company's net interest margin, on a tax-equivalent basis, for the three months ended September 30, 2018, June 30, 2018 and September 30, 2017 and the nine months ended September 30, 2018 and September 30, 2017.

NET INTEREST MARGIN










(Unaudited)










(Dollars in thousands)


For the three months ended




30-Sep-18



30-Jun-18



30-Sep-17


Average interest earning assets

$

1,274,435


$

1,266,663


$

1,204,106


Interest income

$

15,144


$

14,510


$

13,389


Interest income - tax-equivalent

$

15,285


$

14,656


$

13,699


Yield on interest earning assets


4.76

%


4.64

%


4.51

%

Average interest bearing liabilities

$

1,065,268


$

1,064,626


$

1,016,825


Interest expense

$

3,164


$

2,863


$

2,363


Cost of interest bearing liabilities


1.18

%


1.08

%


0.92

%

Net interest income

$

11,980


$

11,647


$

11,026


Net interest income - tax-equivalent

$

12,121


$

11,793


$

11,336


Interest spread


3.58

%


3.56

%


3.59

%

Net interest margin


3.77

%


3.73

%


3.74

%






















For the nine months ended






30-Sep-18



30-Sep-17





Average interest earning assets

$

1,265,026


$

1,189,607





Interest income

$

43,733


$

39,557





Interest income - tax-equivalent

$

44,173


$

40,487





Yield on interest earning assets


4.67

%


4.55

%




Average interest bearing liabilities

$

1,061,432


$

1,010,523





Interest expense

$

8,639


$

6,690





Cost of interest bearing liabilities


1.09

%


0.89

%




Net interest income

$

35,094


$

32,867





Net interest income - tax-equivalent

$

35,534


$

33,797





Interest spread


3.58

%


3.66

%




Net interest margin


3.76

%


3.80

%




 

Provision for Loan Losses

The Company records a separate provision for loan losses for its loan portfolio, excluding PCI loans, and the PCI loan portfolio.  There was no provision for loan losses on the loan portfolio, excluding PCI loans, during either the third quarter or the nine months ended September 30, 2018. This compares with a provision for loan losses of $150,000 for the third quarter and the nine months ended September 30, 2017. The absence of a provision during the third quarter of 2018 was the direct result of nominal charge-offs and stable asset quality, coupled with the level of loan growth during the period. There was no provision for loan losses on the PCI loan portfolio during any of 2018 or 2017.  Additional discussion of loan quality is presented below.

Noninterest Income

Linked Quarter Basis
Noninterest income was $1.2 million for the third quarter of 2018, an increase of $76,000 compared with $1.1 million for the second quarter of 2018.  Gain (loss) on securities transactions, net exhibited a linked quarter change of $84,000.  Gains of $68,000 were realized on the sale of securities in the third quarter of 2018 compared with losses of $16,000 realized in the second quarter of 2018. Mortgage loan income increased $17,000 on a linked quarter basis and was $97,000 in the third quarter of 2018. Service charges and fees increased $15,000 on a linked quarter basis and were $626,000 for the third quarter of 2018. There was $65,000 in gain on sale of loans in the third quarter of 2018 versus $53,000 in the second quarter of 2018. Offsetting these increases to noninterest income was other noninterest income of $171,000, which was a decrease of $52,000 from the second quarter of 2018. The linked quarter change was primarily attributable to a decrease of $59,000 in brokerage commission income in the third quarter of 2018.

Year-Over-Year Nine Months
Noninterest income was $3.4 million for the first nine months of 2018, an increase of $351,000, or 11.6%, compared with $3.0 million for the first nine months of 2017. Service charges and fees increased $153,000 for the first nine months of 2018 compared with the same period in 2017 and were $1.8 million. Mortgage loan income of $288,000 for the first nine months of 2018 was an increase of $125,000 from $163,000 for the same period in 2017. Gain on sale of loans was $118,000 for the first nine months of 2018 versus $0 for the same period in 2017. Other noninterest income, driven by higher brokerage commission and investment dividend income, reflected an increase of $74,000 for the first nine months of 2018 over the same period in 2017. Partially offsetting these increases was a decline of $98,000 in gain (loss) on securities transactions, net, which were $82,000 for the first nine months of 2018.

Year-Over-Year Quarter
Noninterest income increased $213,000, or 21.3%, and was $1.2 million in the third quarter of 2018 compared with $998,000 in the third quarter of 2017. Service charges and fees exhibited the largest increase, $68,000, in the third quarter of 2018 compared with the same period in 2017 and were $626,000.  Gain on sale of loans was $65,000 in the third quarter of 2018 compared with $0 in the third quarter of 2017. Mortgage loans increased $38,000 year-over-year, from $59,000 in the third quarter of 2017 to $97,000 in the same period in 2018.  Other noninterest income, once again as a result of improved brokerage commission and investment dividend income, increased $26,000 year-over-year.

Noninterest Expenses

Linked Quarter Basis
Noninterest expenses totaled $8.3 million for the third quarter of 2018, as compared with $8.2 million for the second quarter of 2018, an increase of $104,000, or 1.3%.  Other operating expenses increased by $63,000 on a linked quarter basis, driven by increases of $79,000 in credit expense, $75,000 in stationery, printing and supplies, $28,000 in other expenses and $23,000 in marketing expense. Offsetting these increases to other operating expenses was a decrease of $142,000 in bank franchise tax due to refunds received on amended returns during the third quarter of 2018. Also increasing on a linked quarter basis was equipment expense, which was $366,000 for the third quarter of 2018 versus $344,000 for the previous quarter, an increase of $22,000. 

Year-Over-Year Nine Months
Noninterest expenses were $25.8 million for the first nine months of 2018, as compared with $25.2 million for the same period in 2017.  This is an increase of $629,000, or 2.5%. Salaries and employee benefits increased $1.5 million for the first nine months of 2018 compared with the same period in 2017. Within this increase, $668,000 was related to group hospital and medical insurance increases and $576,000 was related to increases in total salaries.  Also impacting noninterest expenses for the first nine months of 2018 compared with the same period in 2017 were increases of $175,000 in equipment expenses and $32,000 in occupancy expenses reflecting the opening of three new branches during the second half of 2017. Other real estate expenses, net, also increased $60,000 during the same period. These increases were offset by a decline of $878,000 in amortization of intangibles, which became fully amortized in 2017, and a decline of $273,000 in other operating expenses. Significant decreases in 2018 in other operating expenses were declines of $160,000 in telephone and internet line expense as a result of bringing line monitoring management in-house during the second quarter of 2018, $135,000 in credit expense, $97,000 in stationery, printing and supplies and $79,000 in bank franchise tax. Other expenses included in other operating expenses increased $140,000 for the first nine months of 2018 compared with the same period in 2017 as did outside vendor fees, which increased by $92,000.

Year-Over-Year Quarter
Noninterest expenses decreased $248,000, or 2.9%, when comparing the third quarter of 2018 to the same period in 2017. Other operating expenses decreased $265,000, or 16.1%. Bank franchise tax declined by $121,000 over the comparison period due to the previously mentioned refund, as did telephone and internet line expense, which decreased by $114,000 due to the in-house change noted above, and credit expense, which decreased by $67,000. Occupancy expense decreased by $77,000 year-over-year and amortization of intangibles decreased $62,000 year-over-year. Offsetting these decreases to noninterest expenses were increases of $78,000 in salaries and employee benefits, $61,000 in equipment expenses and $26,000 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 September 30, 2018, June 30, 2018, December 31, 2017 and September 30, 2017 and nine months ended September 30, 2018 and September 30, 2017.

OTHER OPERATING
EXPENSES














(Unaudited)














(Dollars in thousands)


For the three months ended



For the nine months ended



30-Sep-18


30-Jun-18


31-Dec-17


30-Sep-17



30-Sep-18


30-Sep-17

Bank franchise tax

$

37

$

179

$

158

$

158


$

395

$

474

Telephone and internet line


50


51


172


164



344


504

Stationery, printing and supplies


160


85


153


174



423


520

Marketing expense


156


133


155


161



467


501

Credit expense


180


101


75


247



373


508

Outside vendor fees


155


154


200


117



454


362

Other expenses


638


610


602


620



1,882


1,742

Total other operating expenses

$

1,376

$

1,313

$

1,515

$

1,641


$

4,338

$

4,611

 

Income Taxes

Income tax expense was $945,000 for the three months ended September 30, 2018, compared with income tax expense of $813,000 for the second quarter of 2018 and $919,000 for the third quarter of 2017.  For the nine months ended September 30, 2018, income tax expense was $2.3 million compared with $2.7 million for the first nine months of 2017. The effective tax rate for the third quarter of 2018 was 19.3% versus 17.7% for the second quarter of 2018 and 27.6% in the third quarter of 2017. For the first nine months of 2018, the effective tax rate was 18.2% and, for the same period in 2017, it was 25.5%. The decrease in the Company's effective tax rate resulted principally from the decrease in its applicable federal corporate income tax rate from 34% to 21% as a result of the Tax Cuts and Jobs Act enacted in December 2017.    

FINANCIAL CONDITION

Total assets increased $14.2 million, or 1.1%, to $1.350 billion at September 30, 2018 when compared with December 31, 2017.  Total assets increased $56.3 million, or 4.3%, since September 30, 2017.  Total loans, excluding PCI loans, were $962.4 million at September 30, 2018, increasing $20.4 million, or 2.2%, from year end 2017 and $72.4 million, or 8.1%, from September 30, 2017.   Total PCI loans were $39.1 million at September 30, 2018 versus $44.3 million at year end 2017 and $45.5 million at September 30, 2017.

During the third quarter, commercial mortgage loans, the largest category of loans, decreased by $17.6 million, or 4.7%, and were $358.5 million at September 30, 2018. Multifamily loan balances were $52.3 million at September 30, 2018 and decreased $2.1 million during the third quarter of 2018. Also, residential 1 – 4 family loan balances decreased by $1.4 million during the third quarter of 2018 and were $216.2 million at September 30, 2018. Offsetting these decreases was an increase of $15.9 million during the third quarter of 2018 in construction and land development loan balances, which totaled $135.0 million at September 30, 2018.

During the first nine months of 2018, loans grew by $20.4 million, or 2.2%. Construction and land development loans grew by $27.2 million, or 25.2%, commercial loans grew by $11.3 million, or 7.1%, and consumer installment loans grew by $8.0 million. Offsetting these increases were declining balances in residential 1 – 4 family mortgages, which declined by $11.3 million, or 5.0%, commercial mortgage loans, which declined by $7.8 million, or 2.1%, and multifamily loans, which decreased $6.8 million, or 11.5%. In March 2018, the Company purchased an in-market, high quality consumer auto loan pool totaling $9.0 million.  The addition of these loans brought an increase in diversification to the portfolio.

The Company's loan portfolio exhibits balanced growth when comparing September 30, 2018 and September 30, 2017.  Total loans grew $72.4 million, or 8.1%, over the time frame with commercial loans exhibiting the largest increase, $33.7 million, or 24.6%, followed by construction and land development loans, which grew by $32.4 million, or 31.6%, commercial mortgage loans, which grew by $12.7 million, or 3.7%, and consumer installment loans, which grew by $7.8 million.

The following table shows the composition of the Company's loan portfolio, excluding PCI loans, at September 30, 2018, June 30, 2018, December 31, 2017 and September 30, 2017.

LOANS (excluding PCI loans)



















(Unaudited)



















(Dollars in thousands)


30-Sep-18



30-Jun-18



31-Dec-17



30-Sep-17






Amount


% of
Loans



Amount

% of
Loans



Amount

% of
Loans



Amount

% of
Loans



Mortgage loans on real estate:



















Residential 1-4 family

$

216,203


22.46

%

$

217,610

22.50

%

$

227,542

24.16

%

$

229,745

25.82

%



Commercial


358,490


37.25



376,134

38.88



366,331

38.89



345,759

38.85




Construction and land development


135,021


14.03



119,110

12.31



107,814

11.44



102,594

11.53




Second mortgages


7,179


0.75



7,387

0.76



8,410

0.89



7,399

0.83




Multifamily


52,255


5.43



54,329

5.62



59,024

6.27



53,642

6.03




Agriculture


8,066


0.84



7,467

0.77



7,483

0.79



7,588

0.85




Total real estate loans


777,214


80.76



782,037

80.84



776,604

82.44



746,727

83.91



Commercial loans


170,310


17.70



170,065

17.58



159,024

16.88



136,643

15.35



Consumer installment loans


13,135


1.36



13,717

1.42



5,169

0.55



5,331

0.60



All other loans


1,766


0.18



1,542

0.16



1,221

0.13



1,279

0.14




Gross loans


962,425


100.00

%


967,361

100.00

%


942,018

100.00

%


889,980

100.00

%


Allowance for loan losses


(8,993)





(9,089)




(8,969)




(8,667)




Loans, net of unearned income

$

953,432




$

958,272



$

933,049



$

881,313







































 

The Company's securities portfolio, excluding restricted equity securities of $7.9 million, declined $6.8 million since year end 2017 to total $244.2 million at September 30, 2018. Securities balances declined $12.7 million since September 30, 2017.  Net gains of $68,000 were realized during the third quarter of 2018 through sales and call activity.  For the first nine months of 2018, there were net gains of $82,000 realized through sales and call activity. 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 $24.3 million, $22.0 million and $22.6 million at September 30, 2018, December 31, 2017 and September 30, 2017, respectively.  There were federal funds sold of $240,000 at September 30, 2018 and $144,000 at September 30, 2017.  There were federal funds purchased of $10.0 million at September 30, 2018 and $4.8 million at December 31, 2017. Interest bearing bank balances were $11.2 million at September 30, 2018 compared with $7.3 million at December 31, 2017 and $12.7 million at September 30, 2017.

The following table shows the composition of the Company's securities portfolio, excluding equity securities, at September 30, 2018, June 30, 2018, December 31, 2017 and September 30, 2017.

SECURITIES PORTFOLIO

















(Unaudited)

















(Dollars in thousands)


30-Sep-18


30-Jun-18


31-Dec-17


30-Sep-17




Amortized
Cost


Fair
Value


Amortized
Cost


Fair
 Value


Amortized
Cost


Fair
 Value


Amortized
Cost


Fair 
Value


Securities Available for Sale


















U.S. Treasury issue and other


















     U.S. Government agencies

$

26,600

$

26,037

$

25,021

$

24,520

$

27,478

$

27,183

$

28,657

$

28,439


U.S Government sponsored agencies


8,378


8,424


9,077


9,124


9,247


9,278


2,779


2,743


State, county, and municipal


117,557


115,744


120,935


120,079


124,032


125,760


122,318


124,329


Corporate and other bonds


9,647


9,651


8,539


8,658


7,323


7,460


14,947


15,022


Mortgage backed securities - U.S.
Government agencies


14,420


14,254


15,057


14,954


18,546


18,515


23,921


23,531


Mortgage backed securities - U.S.
Government sponsored agencies


27,255


26,493


22,479


21,828


16,985


16,638


16,625


16,383


Total securities available for sale

$

203,857

$

200,603

$

201,108

$

199,163

$

203,611

$

204,834

$

209,247

$

210,447




















Securities Held to Maturity


















U.S Government sponsored agencies

$

10,000

$

9,680

$

10,000

$

9,713

$

10,000

$

9,845

$

10,000

$

9,922


State, county, and municipal


33,559


33,515


33,585


33,792


35,678


36,567


35,965


36,897


Mortgage backed securities - U.S.
Government agencies


-


-


404


409


468


476


495


506


Total securities held to maturity

$

43,559

$

43,195

$

43,989

$

43,914

$

46,146

$

46,888

$

46,460

$

47,325




































 

Interest bearing deposits at September 30, 2018 were $975.0 million, an increase of $32.3 million from December 31, 2017 and $42.0 million from September 30, 2017. Time deposits less than or equal to $250,000 have shown the largest dollar volume growth during 2018 with $53.2 million in additional balances and totaling $491.0 million at quarter end. Time deposits over $250,000 grew by $3.2 million and were $113.7 million at September 30, 2018. NOW accounts decreased by $10.0 million and were $147.0 million at September 30, 2018.

Money market deposit accounts decreased $16.1 million, or 11.2%, from $144.4 million at September 30, 2017 to $128.3 million at September 30, 2018.  NOW accounts grew $9.5 million, or 6.9%, since September 30, 2017. These increases have allowed the Bank to decrease balances with brokered time deposits by $12.0 million over the last year, and those balances were only $2.5 million at September 30, 2018.

The following table compares the mix of interest bearing deposits at September 30, 2018, June 30, 2018, December 31, 2017 and September 30, 2017.

INTEREST BEARING DEPOSITS









(Unaudited)









(Dollars in thousands)











30-Sep-18


30-Jun-18


31-Dec-17


30-Sep-17

NOW

$

147,026

$

162,984

$

157,037

$

137,559

MMDA


128,277


145,071


143,363


144,409

Savings


94,972


94,498


93,980


91,642

Time deposits less than or equal to $250,000


491,044


452,734


437,810


440,607

Time deposits over $250,000


113,715


116,657


110,546


118,837

Total interest bearing deposits

$

975,034

$

971,944

$

942,736

$

933,054

 

FHLB advances were $63.8 million at September 30, 2018, compared with $101.4 million at December 31, 2017 and $81.3 million at September 30, 2017.   

Shareholders' equity was $131.8 million at September 30, 2018, $124.0 million at December 31, 2017 and $124.4 million at September 30, 2017.  Shareholder's equity to assets was 9.8% at September 30, 2018, 9.3% at December 31, 2017 and 9.6% at September 30, 2017. 

Asset Quality – non-covered assets

Nonaccrual loans were $8.9 million at September 30, 2018, decreasing $449,000 during the third quarter of 2018 and decreasing $132,000 from December 31, 2017. Nonaccrual loan balances declined by $3.8 million, or 29.8%, since September 30, 2017. 

The following chart shows the level of nonaccrual loans, classified loans and criticized loans over the last five quarters.

ASSET QUALITY






(Unaudited)











(Dollars in thousands)


2018


2017



30-Sep-18


30-Jun-18


31-Mar-18


31-Dec-17


30-Sep-17

Nonaccrual loans

$

8,894

$

9,343

$

10,090

$

9,026

$

12,677

Criticized (special mention) loans


10,338


17,400


19,526


13,573


8,200

Classified (substandard) loans


13,083


15,181


14,243


13,264


16,886

Other real estate owned


1,732


3,147


3,166


2,791


2,710

Total classified and criticized assets

$

25,153

$

35,728

$

36,935

$

29,628

$

27,796

 

Nonperforming assets totaled $10.6 million at September 30, 2018 compared with $11.8 million at December 31, 2017. Nonperforming assets declined $1.9 million, or 14.9%, during the third quarter of 2018. Nonperforming assets decreased $4.8 million, or 30.9%, since September 30, 2017.  There were net charge-offs of $96,000 in the third quarter of 2018.

The allowance for loan losses equaled 101.1% of nonaccrual loans at September 30, 2018, compared with 97.3% at June 30, 2018, 99.4% at December 31, 2017 and 68.4% at September 30, 2017. The ratio of nonperforming assets to loans and OREO was 1.10% at September 30, 2018, 1.29% at June 30, 2018, 1.25% at December 31, 2017 and 1.72% at September 30, 2017.

The following table reconciles the activity in the Company's non-covered allowance for loan losses, by quarter, for the past five quarters.

ALLOWANCE FOR LOAN LOSSES












(Unaudited)












(Dollars in thousands)

2018


2017



Third


Second


First



Fourth


Third



Quarter


Quarter


Quarter



Quarter


Quarter

Allowance for loan losses:












Beginning of period

$

9,089

$

8,968

$

8,969


$

8,667

$

9,489

Provision for loan losses


-


-


-



400


150

Net (charge-offs) recoveries


(96)


121


(1)



(98)


(972)

End of period

$

8,993

$

9,089

$

8,968


$

8,969

$

8,667

 

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)

2018


2017




30-Sep-18


30-Jun-18



31-Mar-18



31-Dec-17


30-Sep-17


Nonaccrual loans

$

8,894

$

9,343


$

10,090


$

9,026

$

12,677


Loans past due over 90 days and accruing interest


-


-



-



-


-


Total nonperforming loans


8,894


9,343



10,090



9,026


12,677


Other real estate owned


1,732


3,147



3,166



2,791


2,710


Total nonperforming assets

$

10,626

$

12,490


$

13,256


$

11,817

$

15,387
















Allowance for loan losses to loans


0.93

%

0.94

%


0.93

%


0.95

%

0.97

%

Allowance for loan losses to nonaccrual loans


101.11


97.28



88.88



99.37


68.37


Nonperforming assets to loans and other real estate


1.10


1.29



1.37



1.25


1.72


Net charge-offs/(recoveries) for quarter to average
loans, annualized


0.04

%

(0.05)

%


-

%


0.04

%

0.45

%


















 

A further breakout of nonaccrual loans, excluding PCI loans, at September 30, 2018, December 31, 2017 and September 30, 2017 is below.

NONACCRUAL LOANS (excluding PCI loans)






(Unaudited)










(Dollars in thousands)


30-Sep-18


31-Dec-17


30-Sep-17




Amount


Amount


Amount

Mortgage loans on real estate:











Residential 1-4 family


$

1,530


$

1,962


$

2,140


Commercial



2,243



1,498



3,492


Construction and land development



4,610



4,277



4,283


Agriculture



-



68



66


Total real estate loans


$

8,383


$

7,805


$

9,981

Commercial loans



506



1,214



2,666

Consumer installment loans



5



7



30


Gross loans


$

8,894


$

9,026


$

12,677

 

Capital Requirements

The Bank's ratio of total risk-based capital was 13.5% at September 30, 2018 compared with 12.5% at December 31, 2017.  The tier 1 risk-based capital ratio was 12.7% at September 30, 2018 and 11.7% at December 31, 2017. The Bank's tier 1 leverage ratio was 10.1% at September 30, 2018 and 9.6% at December 31, 2017.  All capital ratios exceed regulatory minimums to be considered well capitalized.  BASEL III introduced the common equity tier 1 capital ratio, which was 12.7% at September 30, 2018 and 11.7% at December 31, 2017.

Earnings Conference Call and Webcast

The Company will host a conference call for interested parties on Friday, October 26, 2018, at 10:00 a.m. Eastern Time to discuss the financial results for the third quarter of 2018. 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 26, 2018, until 9:00 a.m. Eastern Time on November 16, 2018. The replay will be available by dialing 877-344-7529 and entering access code 10125021 or through the internet by accessing the "Corporate Overview – Corporate Profile" page of the Company's internet site 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 25 full-service offices, 20 of which are in Virginia and five of which are in Maryland.  The Bank also operates one loan production office in Virginia.  The Bank opened a new branch office in the Stonehenge Village development in Midlothian, Virginia on July 31, 2018.  The Bank closed its Arnold branch office on September 14, 2018.

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 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, 2017 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-18


31-Dec-17


30-Sep-17

Assets







Cash and due from banks

$

12,918

$

14,642

$

9,750

Interest bearing bank deposits


11,177


7,316


12,656

Federal funds sold


240


-


144

Total cash and cash equivalents


24,335


21,958


22,550








Securities available for sale, at fair value


200,603


204,834


210,447

Securities held to maturity, at cost


43,559


46,146


46,460

Equity securities, restricted, at cost


7,886


9,295


8,356

Total securities


252,048


260,275


265,263








Loans


962,425


942,018


889,980

Purchased credit impaired (PCI) loans


39,144


44,333


45,451

Allowance for loan losses


(8,993)


(8,969)


(8,667)

Allowance for loan losses – PCI loans


(137)


(200)


(200)

Net loans


992,439


977,182


926,564








Bank premises and equipment, net


31,782


30,198


29,469

Bank premises and equipment held for sale


1,252


-



Other real estate owned


1,732


2,791


2,710

Bank owned life insurance


28,649


28,099


27,911

Core deposit intangibles, net


-


-


20

Other assets


18,183


15,687


19,643

Total assets

$

1,350,420

$

1,336,190

$

1,294,130








Liabilities







Deposits:







Noninterest bearing

$

158,854

$

153,028

$

145,328

Interest bearing


975,034


942,736


933,054

Total deposits


1,133,888


1,095,764


1,078,382








Federal funds purchased


10,000


4,849


-

Federal Home Loan Bank advances


63,820


101,429


81,296

Trust preferred capital notes


4,124


4,124


4,124

Other liabilities


6,785


6,021


5,905

Total liabilities


1,218,617


1,212,187


1,169,707








Shareholders' Equity







Common stock (200,000,000 shares authorized $0.01 par value;
22,120,862, 22,072,523, and 22,047,833 shares issued and
outstanding, respectively)


221


221


220

Additional paid in capital


148,494


147,671


147,453

Retained deficit


(13,601)


(23,932)


(23,285)

Accumulated other comprehensive (loss) income


(3,311)


43


35

Total shareholders' equity


131,803


124,003


124,423

Total liabilities and shareholders' equity

$

1,350,420

$

1,336,190

$

1,294,130

 

COMMUNITY BANKERS TRUST CORPORATION









CONSOLIDATED STATEMENTS OF INCOME









UNAUDITED
















(Dollars in thousands)

YTD


Three months ended


YTD


Three months ended


2018


30-Sep-18

30-Jun-18


2017


30-Sep-17

30-Jun-17

Interest and dividend income
















Interest and fees on loans

$

34,122


$

11,893

$

11,353


$

29,676


$

10,127

$

9,952

Interest and fees on PCI loans


3,937



1,265


1,274



4,355



1,423


1,452

Interest on federal funds sold


1



-


1



1



1


-

Interest on deposits in other banks


203



94


69



143



65


53

Interest and dividends on securities
















  Taxable


3,816



1,364


1,266



3,577



1,171


1,157

  Nontaxable


1,654



528


547



1,805



602


606

Total interest and dividend income


43,733



15,144


14,510



39,557



13,389


13,220

Interest expense
















Interest on deposits


7,197



2,699


2,355



5,776



2,053


1,944

Interest on borrowed funds


1,442



465


508



914



310


302

Total interest expense


8,639



3,164


2,863



6,690



2,363


2,246

















Net interest income


35,094



11,980


11,647



32,867



11,026


10,974

















Provision for loan losses


-



-


-



150



150


-

Net interest income after provision for
loan losses


35,094



11,980


11,647



32,717



10,876


10,974

















Noninterest income
















Service charges and fees


1,818



626


611



1,665



558


582

Gain (loss) on securities transactions, net


82



68


(16)



180



48


37

Gain on sale of loans


118



65


53



-



-


-

Income on bank owned life insurance


551



184


184



572



188


192

Mortgage loan income


288



97


80



163



59


71

Other


522



171


223



448



145


155

Total noninterest income


3,379



1,211


1,135



3,028



998


1,037

















Noninterest expense
















Salaries and employee benefits


15,897



5,029


5,019



14,434



4,951


4,843

Occupancy expenses


2,361



780


769



2,329



857


740

Equipment expenses


1,024



366


344



849



305


260

FDIC assessment


599



195


198



550



185


164

Data processing fees


1,467



482


499



1,466



501


477

Amortization of intangibles


-



-


-



878



62


339

Other real estate expenses, net


158



63


45



98



37


34

Other operating expenses


4,338



1,376


1,313



4,611



1,641


1,528

Total noninterest expense


25,844



8,291


8,187



25,215



8,539


8,385

















Income before income taxes


12,629



4,900


4,595



10,530



3,335


3,626

Income tax expense


2,298



945


813



2,687



919


692

Net income

$

10,331


$

3,955

$

3,782


$

7,843


$

2,416

$

2,934

 

COMMUNITY BANKERS TRUST CORPORATION











CONSOLIDATED STATEMENTS OF INCOME











UNAUDITED











(Dollars in thousands)


Three months ended



30-Sep-18


30-Jun-18


31-Mar-18


31-Dec-17


30-Sep-17

Interest and dividend income











Interest and fees on loans

$

11,893

$

11,353

$

10,876

$

10,625

$

10,127

Interest and fees on PCI loans


1,265


1,274


1,398


1,378


1,423

Interest on federal funds sold


-


1


-


-


1

Interest on deposits in other banks


94


69


40


53


65

Interest and dividends on securities











  Taxable


1,364


1,266


1,186


1,105


1,171

  Nontaxable


528


547


579


597


602

Total interest and dividend income


15,144


14,510


14,079


13,758


13,389

Interest expense











Interest on deposits


2,699


2,355


2,143


2,121


2,053

Interest on borrowed funds


465


508


469


388


310

Total interest expense


3,164


2,863


2,612


2,509


2,363












Net interest income


11,980


11,647


11,467


11,249


11,026












Provision for loan losses


-


-


-


400


150

Net interest income after provision for loan losses


11,980


11,647


11,467


10,849


10,876












Noninterest income











Service charges and fees


626


611


581


572


558

Gain (loss) on securities transactions, net


68


(16)


30


30


48

Gain on sale of loans


65


53


-


-


-

Income on bank owned life insurance


184


184


183


187


188

Mortgage loan income


97


80


111


79


59

Other


171


223


128


177


145

Total noninterest income


1,211


1,135


1,033


1,045


998












Noninterest expense











Salaries and employee benefits


5,029


5,019


5,849


4,990


4,951

Occupancy expenses


780


769


812


801


857

Equipment expenses


366


344


314


295


305

FDIC assessment


195


198


206


176


185

Data processing fees


482


499


486


457


501

Amortization of intangibles


-


-


-


20


62

Other real estate expenses, net


63


45


50


64


37

Other operating expenses


1,376


1,313


1,649


1,515


1,641

Total noninterest expense


8,291


8,187


9,366


8,318


8,539












Income before income taxes


4,900


4,595


3,134


3,576


3,335

Income tax expense


945


813


540


4,216


919

Net income (loss)

$

3,955

$

3,782

$

2,594

$

(640)

$

2,416

 

COMMUNITY BANKERS TRUST CORPORATION















NET INTEREST MARGIN ANALYSIS

















AVERAGE BALANCE SHEETS


















(Unaudited)


















(Dollars in thousands)




















Three months ended September 30, 2018



Three months ended September 30, 2017




Average
Balance
 Sheet


Interest
Income /
Expense


Average
Rates
Earned /
Paid



Average
Balance 
Sheet


Interest
Income /
Expense


Average
Rates
Earned /
Paid



ASSETS:




















Loans, including fees

$

965,763


$

11,893


4.89

%


$

869,501


$

10,127


4.62

%



PCI loans,  including fees


39,614



1,265


12.49




47,358



1,423


11.76




   Total loans


1,005,377



13,158


5.19




916,859



11,550


5.00




Interest bearing bank balances


15,244



94


2.45




18,333



65


1.40




Federal funds sold


91



-


1.92




105



1


1.21




Securities (taxable)


179,738



1,364


3.04




182,703



1,171


2.56




Securities (tax exempt)(1)


73,985



669


3.62




86,106



912


4.24




Total earning assets


1,274,435



15,285


4.76




1,204,106



13,699


4.51




Allowance for loan losses


(9,219)









(9,523)









Non-earning assets


94,804









89,935









   Total assets

$

1,360,020








$

1,284,518




























LIABILITIES AND




















SHAREHOLDERS' EQUITY




















Demand - interest bearing

$

284,407


$

297


0.42



$

280,253


$

284


0.40




Savings


94,487



62


0.26




90,774



60


0.26




Time deposits


593,450



2,340


1.56




567,800



1,709


1.19




Total interest bearing deposits


972,344



2,699


1.10




938,827



2,053


0.87




Short-term borrowings


2,163



13


2.32




381



2


1.67




FHLB and other borrowings


90,761



452


1.98




77,617



308


1.57




Total interest bearing liabilities


1,065,268



3,164


1.18




1,016,825



2,363


0.92




Noninterest bearing deposits


157,252









138,330









Other liabilities


6,509









5,395









Total liabilities


1,229,029









1,160,550









Shareholders' equity


130,991









123,968









Total liabilities and




















   shareholders' equity

$

1,360,020








$

1,284,518









Net interest earnings




$

12,121








$

11,336





Interest spread







3.58

%








3.59

%


Net interest margin







3.77

%








3.74

%





















Tax-equivalent adjustment:



















Securities




$

140








$

310























(1)  Income and yields are reported on a tax-equivalent basis assuming a federal tax rate of 21% for 2018 and 34% for 2017.







































 

COMMUNITY BANKERS TRUST CORPORATION















NET INTEREST MARGIN ANALYSIS

















AVERAGE BALANCE SHEETS


















(Unaudited)


















(Dollars in thousands)




















Nine months ended September 30, 2018



Nine months ended September 30, 2017




Average
Balance
 Sheet


Interest
Income /
Expense


Average
Rates
Earned /
Paid



Average
Balance
 Sheet


Interest
Income /
Expense


Average
Rates
Earned /
Paid


ASSETS:



















Loans, including fees

$

956,109


$

34,122


4.77

%


$

856,465


$

29,676


4.63

%


PCI loans,  including fees


41,366



3,937


12.55




49,117



4,355


11.69



   Total loans


997,475



38,059


5.10




905,582



34,031


5.02



Interest bearing bank balances


13,063



203


2.08




15,597



143


1.22



Federal funds sold


79



1


1.80




97



1


1.08



Securities (taxable)


177,039



3,816


2.87




182,724



3,577


2.61



Securities (tax exempt)(1)


77,370



2,094


3.61




85,607



2,735


4.26



Total earning assets


1,265,026



44,173


4.67




1,189,607



40,487


4.55



Allowance for loan losses


(9,222)









(9,647)








Non-earning assets


91,994









89,261








   Total assets

$

1,347,798








$

1,269,221


























LIABILITIES AND



















SHAREHOLDERS' EQUITY



















Demand - interest bearing

$

295,683


$

957


0.43



$

253,638


$

579


0.31



Savings


93,902



184


0.26




91,473



181


0.27



Time deposits


568,983



6,056


1.42




580,346



5,016


1.16



Total interest bearing deposits


958,568



7,197


1.00




925,457



5,776


0.83



Short-term borrowings


3,091



50


2.17




994



9


1.21



FHLB and other borrowings


99,773



1,392


1.84




84,072



905


1.44



Total interest bearing liabilities


1,061,432



8,639


1.09




1,010,523



6,690


0.89



Noninterest bearing deposits


152,740









132,868








Other liabilities


5,992









5,487








Total liabilities


1,220,164









1,148,878








Shareholders' equity


127,634









120,343








Total liabilities and



















   shareholders' equity

$

1,347,798








$

1,269,221








Net interest earnings




$

35,534








$

33,797





Interest spread







3.58

%








3.66

%


Net interest margin







3.76

%








3.80

%





















Tax-equivalent adjustment:



















Securities




$

440








$

930























(1)  Income and yields are reported on a tax-equivalent basis assuming a federal tax rate of 21% for 2018 and 34% for 2017.




 

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SOURCE Community Bankers Trust Corporation

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