Market Overview

Community Bankers Trust Corporation Reports Results for Second Quarter of 2018

Share:

Community Bankers Trust Corporation Reports Results for Second Quarter of 2018

Net income of $3.8 million in the second quarter of 2018 is an increase of $1.2 million, or 45.8%, over the first quarter of 2018.

Conference Call on Thursday, July 26, 2018, at 10:00 a.m. Eastern Time

PR Newswire

RICHMOND, Va., July 26, 2018 /PRNewswire/ -- Community Bankers Trust Corporation (the "Company") (NASDAQ:ESXB), the holding company for Essex Bank (the "Bank"), today reported results for the second quarter of 2018.

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

Income Statement- Three Months ended June 30, 2018 compared with Three Months ended March 31, 2018

  • Net income of $3.8 million for the second quarter of 2018 is an increase of $1.2 million, or 45.8%, on a linked quarter basis.
  • Noninterest expenses declined by $1.2 million, driven by a reduction in salaries and employee benefits.
  • Interest and fees on loans increased $477,000, or 4.4%.
  • Noninterest income increased $102,000, or 9.9%.
  • Basic and diluted earnings per common share were $0.17 in the second quarter compared with $0.12 in the first quarter.
  • Return on average assets, annualized, was 1.12% and return on average equity, annualized, was 11.92% in the second quarter.

Income Statement- Six Months ended June 30, 2018 compared with Six Months ended June 30, 2017

  • Net income of $6.4 million is an increase of $949,000, or 17.5%.
  • Pre-tax net income increased $534,000, or 7.4%.
  • Interest and dividend income of $28.6 million is an increase of $2.4 million, or 9.3%.
  • Interest and fees on loans increased $2.7 million, or 13.7%.
  • Net interest income increased $1.3 million, or 5.8%.
  • Return on average assets, annualized, was 0.95% and return on average equity, annualized, was 10.13% for the first six months of 2018.

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

  • Net income of $3.8 million for the second quarter of 2018 is an increase year-over-year of $848,000, or 28.9%.
  • Pre-tax net income increased $969,000, or 26.7%.
  • Interest and dividend income increased $1.3 million, or 9.8%, in the second quarter of 2018 over the same period in 2017, led by interest and fees on loans, which increased $1.4 million, or 14.1%.
  • Net interest income after provision for loan losses increased $673,000, or 6.1%, year-over-year.
  • Noninterest income increased year-over-year by 9.5%.
  • Noninterest expenses declined year-over-year by 2.4%.

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

  • Loans grew $103.3 million, or 12.0%, from $864.0 million at June 30, 2017 to $967.4 million at June 30, 2018.
  • Noninterest bearing deposits grew $13.5 million, or 9.7%, year-over-year and totaled $152.0 million, representing 13.5% of total deposits, an increase from 12.8% one year ago.
  • Deposits increased $41.0 million, or 3.8%, year-over-year.
  • NOW and Money Market accounts increased $45.6 million from June 30, 2017 to June 30, 2018.
  • The growth noted in NOW and Money Market accounts has enabled a decrease in brokered time deposits of $26.5 million, or 73.6%, year-over-year, to only $9.5 million at June 30, 2018.

MANAGEMENT COMMENTS 

Rex L. Smith, III, President and Chief Executive Officer, stated, "The second quarter showed significant progress in the earnings power of the Company.  Controlled growth in loans has allowed our new branches time to gain footing and keep our cost of funds from rising significantly.  This strategy in the rising rate environment has translated to an overall increase of 45.8% in net income on a linked quarter basis.   In addition to improved net interest income, noninterest income continues to increase from increases in fee income on checking accounts, along with mortgage and investment services income."

Smith added, "All of the core areas of the Bank are showing great progress.  While we were prepared for the rising rate environment, our markets remain competitive as some of the newer entrants try to buy market share. But, we continue to remain true to our vision of building total relationships and not engaging in irrational pricing or credit practices for the sake of growth.  While that strategy has slowed our loan growth in the first two quarters, it will be enough to continue the growth rate required for a strong net interest margin and growth in our core customer base."

Smith concluded, "We are pleased with the results of the second quarter and the first half of the year and remain excited for the earnings potential for the remainder of the year."

RESULTS OF OPERATIONS

Linked Quarter Basis
Net income was $3.8 million for the second quarter of 2018, compared with net income of $2.6 million in the first quarter of 2018.   Earnings per common share, basic and fully diluted, were $0.17 per share and $0.12 per share for the three months ended June 30, 2018 and March 31, 2018, respectively. The increase of $1.2 million, or 45.8%, in net income, for the second quarter of 2018 compared with the first quarter of 2018, was primarily the result of a $1.2 million decrease in noninterest expense, driven by a decline of $830,000 in salaries and employee benefits. Also positively influencing net income was an increase of $477,000 in interest and fees on loans. Net interest income after provision for loan losses increased $180,000, and noninterest income increased $102,000. Offsetting these increases was an increase of $273,000 in income tax expense.

Year-Over-Year Six Months
Net income was $6.4 million for the first six months of 2018 compared with $5.4 million for the same period in 2017. This is an increase of $949,000, or 17.5%. Increases were in interest and dividend income, which increased by $2.4 million, or 9.3%, and in noninterest income, which increased by $138,000, or 6.8%. Also positively affecting earnings was a reduction of $415,000 in income tax expense. Offsetting these increases to net income was an increase of $1.2 million in interest expense and an increase of $877,000 in noninterest expense. Comparing pre-tax income for the two periods eliminates most of the effect of the Tax Cuts and Jobs Act of 2017. Income before taxes increased by $534,000, or 7.4%, for the first six months of 2018 compared with the same period in 2017.

Year-Over-Year Quarter
Net income of $3.8 million for the second quarter of 2018 was an increase of $848,000, or 28.9%, over second quarter 2017 net income of $2.9 million. Pre-tax net income increased $969,000, or 26.7%, in the second quarter of 2018. Interest and dividend income increased by $1.3 million in the second quarter of 2018 compared with the same period in 2017, driven by interest and fees on loans, which increased $1.4 million. Noninterest income increased by $98,000 year-over-year, and noninterest expenses declined by $198,000. Offsetting these increases was an increase in income tax expense, which was $121,000 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 June 30, 2018, March 31, 2018 and June 30, 2017 and the six months ended June 30, 2018 and June 30, 2017.

SUMMARY INCOME STATEMENT

(Unaudited)











(Dollars in thousands)


For the three months ended


For the six months ended



30-Jun-18


31-Mar-18


30-Jun-17


30-Jun-18


30-Jun-17

Interest income

$

14,510

$

14,079

$

13,220

$

28,589

$

26,168

Interest expense


2,863


2,612


2,246


5,475


4,327

Net interest income


11,647


11,467


10,974


23,114


21,841

Provision for loan losses


-


-


-


-


-

Net interest income after provision for loan losses

11,647


11,467


10,974


23,114


21,841

Noninterest income


1,135


1,033


1,037


2,168


2,030

Noninterest expense


8,187


9,366


8,385


17,553


16,676

Income before income taxes


4,595


3,134


3,626


7,729


7,195

Income tax expense


813


540


692


1,353


1,768

Net income

$

3,782

$

2,594

$

2,934

$

6,376

$

5,427












EPS Basic

$

0.17

$

0.12

$

0.13

$

0.29

$

0.25

EPS Diluted

$

0.17

$

0.12

$

0.13

$

0.28

$

0.24












Return on average assets, annualized


1.12%


0.78%


0.92%


0.95%


0.86%

Return on average equity, annualized


11.92%


8.30%


9.75%


10.13%


9.16%

Net Interest Income

Linked Quarter Basis
Net interest income was $11.6 million for the quarter ended June 30, 2018 compared with $11.5 million for the quarter ended March 31, 2018.  This is an increase of $180,000, or 1.6%.

Interest income on a linked quarter basis increased $431,000, or 3.1%, to $14.5 million for the second quarter of 2018.  Interest income with respect to loans, excluding PCI loans, increased $477,000, or 4.4%, during the second quarter when compared with the first quarter of 2018.  This increase was partially attributed to continued loan growth, excluding PCI loans, coupled with higher rates.  The yield on loans increased from 4.68% in the first quarter of 2018 to 4.75% in the second quarter of 2018. The average balance of loans, excluding PCI loans, increased $15.6 million, or 1.6%, on a linked quarter basis. Interest income with respect to PCI loans was $1.3 million in the second quarter of 2018 and $1.4 million in the first quarter of 2018.  Interest income on securities increased $48,000 on a linked quarter basis.

Securities income equaled $2.0 million on a tax-equivalent basis for the second quarter of 2018, which was an increase of $40,000 from the first quarter of 2018.  The tax-equivalent yield on the securities portfolio was 3.11% in the second quarter of 2018 compared with a tax-equivalent yield of 2.98% in the first quarter of 2018.

Interest expense of $2.9 million in the second quarter of 2018 was an increase of $251,000, or 9.6%, on a linked quarter basis.  Interest on deposits increased $212,000, or 9.9%.  Interest on borrowed funds increased by $39,000, or 8.3%.  Average interest bearing balances on deposits increased by only $10.3 million, or 1.1%. However, the cost of these deposits increased from 0.92% in the first quarter of 2018 to 0.99% in the second quarter of 2018, resulting in a 9.9% 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 1.00% in the first quarter of 2018 to 1.08% in the second quarter of 2018.

With the changes in interest income noted above, the tax-equivalent net interest margin declined from 3.76% in the first quarter of 2018 to 3.73% in the second quarter of 2018. Likewise, the interest spread decreased from 3.60% to 3.56% on a linked quarter basis.

Year-Over-Year Six Months
For the first half of 2018, net interest income increased $1.3 million, or 5.8%, and was $23.1 million. The yield on earning assets was 4.62% compared with 4.57% for the first six months of 2017. Interest and fees on loans of $22.2 million in the first two quarters of 2018 was an increase of $2.7 million compared with $19.5 million for the same period in 2017.  Interest and fees on PCI loans declined $260,000 over this same time frame.  Securities income decreased $31,000 for the first six months of 2018 compared with the same period in 2017.  On a tax-equivalent basis, income on securities decreased $352,000, primarily the result of less benefit on bank qualified municipal securities from the implementation in December 2017 of the Tax Cut and Jobs Act. The tax-equivalent yield on the portfolio was 3.04% for the first two quarters of 2018, based on a 21% tax rate, and 3.15% for the same period in 2017, based on a 34% tax rate.

Interest expense of $5.5 million represented an increase of $1.1 million in the first six months of 2018 compared with the same period in 2017. Average interest bearing liabilities increased $52.2 million, or 5.2%,  as loan growth has been fueled by an average balance increase of $61.3 million, or 25.5%,  in the combination of NOW and MMDA accounts.  This has allowed more expensive time deposit balances to decrease, on average, by $30.2 million, or 5.1%, resulting in a $32.9 million increase in the average balance of total deposits.

The tax equivalent net interest margin declined from 3.83% for the first six months of 2017 to 3.75% for the first six months of 2018. While the yield on earning assets increased by five basis points over this time frame, the competition for funding has pushed the cost of interest bearing liabilities up, from 0.87% to 1.04%.  The net interest spread was 3.58% for the first six months of 2018 versus 3.70% for the first six months of 2017.

Year-Over-Year Quarter
Net interest income increased $673,000, or 6.1%, from the second quarter of 2017 to the second quarter of 2018. Net interest income was $11.6 million in the second quarter of 2018 compared with $11.0 million for the same period in 2017.  Interest income increased $1.3 million, or 9.8%, over this time period.  The increase in interest income was generated by an increase of $69.5 million, or 5.8%, in the level of earning assets.  The yield on earning assets increased from 4.53% in the second quarter of 2017 to 4.64% in the second quarter of 2018. The average balance of loans, excluding PCI loans, increased $98.6 million, or 11.5%, from $860.4 million in the second quarter of 2017 to $959.0 million in the second quarter of 2018.  Interest income on securities was $1.8 million in each of the second quarter of 2018 and second quarter of 2017. On a tax-equivalent basis, the yield on investment securities was 3.11% in the second quarter of 2018, based on a 21% tax rate, and 3.09% in the second quarter of 2017, based on a 34% tax rate. 

Interest on PCI loans was $1.3 million in the second quarter of 2018 compared with $1.5 million in the second quarter of 2017.  The average balance of the PCI portfolio declined $8.1 million during the year-over-year comparison period.

Interest expense increased $617,000, or 27.5%, when comparing the second quarter of 2017 and the second quarter of 2018. Interest expense on deposits increased $411,000, or 21.1%, as the average balance of interest bearing deposits increased $24.6 million, or 2.6%.  The increase in deposit cost was driven by an increase in NOW and MMDA average balances, which increased a combined $60.1 million year-over-year. Likewise, the cost of these balances increased $174,000, from 0.26% to 0.44%, over the same time frame. Higher cost time deposit average balances declined over the comparison period by $37.9 million; however, expense on this category increased by $236,000, resulting in an increase in cost from 1.16% to 1.41%. FHLB and other borrowings increased, on average, $18.4 million year-over-year, and there was an increase in the rate paid, from 1.42% in the second quarter of 2017 to 1.87% in the second quarter of 2018. This resulted in an increase in the expense of this wholesale funding source of $182,000, to $482,000 in the second quarter of 2018.  The average balance of FHLB and other borrowings was $103.2 million in the second quarter of 2018. Overall, the Bank's cost of interest bearing liabilities increased 19 basis points, from 0.89% in the second quarter of 2017 to 1.08% in the second quarter of 2018.

The tax-equivalent net interest margin decreased five basis points, from 3.78% in the second quarter of 2018 to 3.73% in the second quarter of 2018.  Likewise, the interest spread decreased from 3.64% to 3.56% over the same time period.  The decrease in the margin was precipitated by the increase in the cost of interest bearing liabilities without a corresponding increase in the yield on earning assets.

The following table compares the Company's net interest margin, on a tax-equivalent basis, for the three months ended June 30, 2018, March 31, 2018 and June 30, 2017 and the six months ended June 30, 2018 and June 30, 2017.

NET INTEREST MARGIN

(Unaudited)










(Dollars in thousands)


For the three months ended





30-Jun-18



31-Mar-18



30-Jun-17



Average interest earning assets

$

1,266,663


$

1,253,752


$

1,197,207



Interest income

$

14,510


$

14,079


$

13,220



Interest income - tax-equivalent

$

14,656


$

14,233


$

13,532



Yield on interest earning assets


4.64

%


4.60

%


4.53

%


Average interest bearing liabilities

$

1,064,626


$

1,054,282


$

1,017,342



Interest expense

$

2,863


$

2,612


$

2,246



Cost of interest bearing liabilities


1.08

%


1.00

%


0.89

%


Net interest income

$

11,647


$

11,467


$

10,974



Net interest income - tax-equivalent

$

11,793


$

11,621


$

11,286



Interest spread


3.56

%


3.60

%


3.64

%


Net interest margin


3.73

%


3.76

%


3.78

%

























For the six months ended







30-Jun-18



30-Jun-17






Average interest earning assets

$

1,260,243


$

1,182,237






Interest income

$

28,589


$

26,168






Interest income - tax-equivalent

$

28,887


$

26,787






Yield on interest earning assets


4.62

%


4.57

%





Average interest bearing liabilities

$

1,059,482


$

1,007,321






Interest expense

$

5,475


$

4,327






Cost of interest bearing liabilities


1.04

%


0.87

%





Net interest income

$

23,114


$

21,841






Net interest income - tax-equivalent

$

23,412


$

22,460






Interest spread


3.58

%


3.70

%





Net interest margin


3.75

%


3.83

%

























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 of the second quarter or the first six months of either 2018 or 2017. The absence of a provision in the second quarter of 2018 was the direct result of nominal charge-offs and stable asset quality, coupled with the level of loan growth in the second quarter of 2018. There was no provision for loan losses on the PCI loan portfolio during the first and second quarters of 2018 or during the first and second quarters of 2017.  Additional discussion of loan quality is presented below.

Noninterest Income

Linked Quarter Basis
Noninterest income was $1.1 million for the second quarter of 2018, an increase of $102,000 compared with $1.0 million for the first quarter of 2018.  Other noninterest income of $223,000 was an increase of $95,000 from the first quarter of 2018. The linked quarter change was primarily attributable to an increase of $74,000 in commission income and an increase of $9,000 in dividend income. There was $53,000 in gain on sale of loans in the second quarter of 2018 versus $0 in the first quarter of 2018. Also increasing were service charges and fees, which increased by $30,000 over the linked quarter. Partially offsetting these increases was a loss on securities transactions that resulted in $46,000 less income than in the prior quarter and a decrease of $31,000 in mortgage loan income in the second quarter of 2018.

Year-Over-Year Six Months
Noninterest income was $2.2 million for the first six months of 2018, an increase of $138,000, or 6.8%, compared with $2.0 million for the first six months of 2017. Mortgage loan income of $191,000 for the first six months of 2018 was an increase of $87,000 from $104,000 for the same period in 2017. Service charges and fees accounts increased $85,000 for the first six months of 2018 compared with the same period in 2017 and were $1.2 million. Gain on sale of loans was $53,000 for the first six months of 2018 versus $0 for the same period in 2017. Other noninterest income, driven by higher commission income, reflected an increase of $48,000 for the first six months of 2018 over the same period in 2017. Partially offsetting these increases was a decline of $118,000 in gains on securities transactions.

Year-Over-Year Quarter
Noninterest income increased $98,000, or 9.5%, and was $1.1 million in the second quarter of 2018. Other noninterest income, once again as a result of improved commission income, increased $68,000 year-over-year, and service charges increased $29,000. Gain on sale of loans was $53,000 in the second quarter of 2018 versus $0 in the second quarter of 2017. Offsetting these increases to noninterest income was a decrease of $53,000 in gain on securities transactions, when a gain of $37,000 was reported in the second quarter of 2017 compared with a loss of $16,000 in the second quarter of 2018.

Noninterest Expenses

Linked Quarter Basis
Noninterest expenses totaled $8.2 million for the second quarter of 2018, as compared with $9.4 million for the first quarter of 2018, a decrease of $1.2 million, or 12.6%.  Salaries and employee benefits decreased $830,000, or 14.9% on a linked quarter basis. The vast majority of this decrease was related to lower group benefit costs, which decreased by $683,000. Salaries and employee benefits in the second quarter of 2018 were $5.0 million compared with $5.8 million in the first quarter of 2018. Other operating expenses also declined, $336,000 on a linked quarter basis, from $1.6 million in the first quarter of 2018 to $1.3 million in the second quarter of 2018. The Company converted to a new phone system in the first quarter of 2018. This conversion resulted in one-time costs absorbed in the first quarter to terminate the previous vendor relationship and created a much lower expense beginning with the second quarter of 2018. This decrease on a linked quarter basis was $192,000. Also providing meaningful reductions to noninterest expenses on a linked quarter basis was a decrease of $93,000 in stationery, printing and supplies, a decrease of $45,000 in marketing expense and a decrease of $25,000 in other expenses.

Year-Over-Year Six Months
Noninterest expenses were $17.6 million for the first six months of 2018, as compared with $16.7 million for the same period in 2017.  This is an increase of $877,000, or 5.3%. Salaries and employee benefits increased $1.4 million for the first six months of 2018 compared with the same period in 2017. Within this increase, $723,000 was related to group hospital and medical insurance increases and $525,000 were related to increases in total salaries. Also impacting noninterest expenses for the first six months of 2018 compared with the same period in 2017 were increases of $114,000 in equipment expenses and $109,000 in occupancy expenses due to branch expansion activities that added three new offices during 2017. These increases were offset by a decline of $816,000 in amortization of intangibles, which became fully amortized in 2017.

Year-Over-Year Quarter
Noninterest expenses decreased $198,000, or 2.4%, when comparing the second quarter of 2018 to the same period in 2017. Amortization of intangibles decreased $339,000 year-over-year, and other operating expenses decreased by $215,000. Within the decrease of $215,000 in other operating expenses were declines of $113,000 in telephone and internet line, $64,000 in stationery, printing and supplies, $56,000 in marketing expense and $55,000 in credit expense. Offsetting these decreases to noninterest expenses were increases of $176,000 in salaries and employee benefits, $84,000 in equipment expenses, $34,000 in FDIC assessment, $29,000 in occupancy expenses, $22,000 in data processing fees and $11,000 in other real estate expenses.

The following table compares the Company's other operating expenses included in noninterest expenses for the three months ended June 30, 2018, March 31, 2018, December 31, 2017 and June 30, 2017.

OTHER OPERATING EXPENSES

(Unaudited)









(Dollars in thousands)


For the three months ended



30-Jun-18


31-Mar-18


31-Dec-17


30-Jun-17

Bank franchise tax

$

179

$

179

$

158

$

158

Telephone and internet line


51


243


172


164

Stationery, printing and supplies


85


178


153


149

Marketing expense


133


178


155


189

Credit expense


101


91


75


156

Outside vendor fees


154


145


200


133

Other expenses


610


635


602


579

Total other operating expenses

$

1,313

$

1,649

$

1,515

$

1,528

Income Taxes

Income tax expense was $813,000 for the three months ended June 30, 2018, compared with income tax expense of $540,000 for the first quarter of 2018 and $692,000 for the second quarter of 2017.  For the six months ended June 30, 2018, income tax expense was $1.4 million compared with $1.8 million for the first six months of 2017. The effective tax rate for the second quarter of 2018 was 17.7% versus 17.2% for the first quarter of 2018 and 19.1% in the second quarter of 2017. For the first six months of 2018, the effective tax rate was 17.5% and for the same period in 2017 it was 24.6%. The decrease in the Company's effective tax rate resulted principally from the decrease in its applicable federal corporate 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 $17.7 million, or 1.3%, to $1.354 billion at June 30, 2018 when compared with December 31, 2017.  Total assets increased $63.4 million, or 4.9%, since June 30, 2017.  Total loans, excluding PCI loans, were $967.4 million at June 30, 2018, increasing $25.3 million, or 2.7%, from year end 2017 and $103.3 million, or 12.0%, from June 30, 2017.   Total PCI loans were $39.9 million at June 30, 2018 versus $44.3 million at year end 2017 and $48.4 million at June 30, 2017.

During the second quarter of 2018 total loan growth was $3.1 million, or 0.32%. Construction and land development loans grew by $9.6 million, or 8.7%, and totaled $119.1 million at June 30, 2018. Commercial mortgage loans, the largest category of loans, grew $4.6 million, or 1.2%, and were $376.1 million at June 30, 2018.  Offsetting these increases were declining balances in multifamily loans, which declined by $5.6 million, or 9.3%, and in residential 1 – 4 family loans, which declined by $5.1 million, or 2.3%.

During the first six months of 2018, loans grew by $25.3 million, or 2.7%. Construction and land development loans grew by $11.3 million, or 10.5%, commercial loans grew by $11.0 million, or 6.9%, and commercial mortgages grew by $9.8 million, or 2.7%. Offsetting these increases were declining balances in residential 1 – 4 family mortgages, which declined by $9.9 million, or 4.4%, and multifamily loans, which decreased $4.7 million, or 8.0%. 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. This purchase resulted in an increase of $8.5 million in consumer installment loans for the six months ended June 30, 2018.

The Company's loan portfolio exhibits balanced growth when comparing June 30, 2018 and June 30, 2017.  Total loans grew $103.3 million, or 12.0%, over the time frame with commercial mortgage loans growing by $35.0 million, or 10.2%, followed by growth of $32.8 million, or 23.9%, in commercial loans, $18.4 million, or 18.3%, in construction and land development loans, $8.6 million in consumer installment loans, $5.1 million, or 2.4%, in residential 1-4 family loans and $3.8 million, or 7.6%, in multifamily loans.

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

LOANS (excluding PCI loans)

(Unaudited)

















(Dollars in thousands)

30-Jun-18


31-Mar-18


31-Dec-17


30-Jun-17





Amount

% of
Loans



Amount

% of
Loans



Amount

% of
Loans



Amount

% of
Loans


Mortgage loans on real estate:


















Residential 1-4 family

$

217,610

22.50

%

$

222,717

23.10

%

$

227,542

24.16

%

$

212,502

24.59

%


Commercial


376,134

38.88



371,494

38.52



366,331

38.89



341,182

39.49



Construction and land development


119,110

12.31



109,534

11.36



107,814

11.44



100,677

11.65



Second mortgages


7,387

0.76



7,689

0.80



8,410

0.89



7,537

0.87



Multifamily


54,329

5.62



59,920

6.21



59,024

6.27



50,511

5.85



Agriculture


7,467

0.77



7,424

0.77



7,483

0.79



7,985

0.92



Total real estate loans


782,037

80.84



778,778

80.76



776,604

82.44



720,394

83.37


Commercial loans


170,065

17.58



170,445

17.67



159,024

16.88



137,261

15.89


Consumer installment loans


13,717

1.42



13,878

1.44



5,169

0.55



5,107

0.59


All other loans


1,542

0.16



1,210

0.13



1,221

0.13



1,287

0.15



Gross loans


967,361

100.00

%


964,311

100.00

%


942,018

100.00

%


864,049

100.00

%

Allowance for loan losses


(9,089)




(8,968)




(8,969)




(9,489)



Loans, net of unearned income

$

958,272



$

955,343



$

933,049



$

854,560



The Company's securities portfolio, excluding restricted equity securities, declined $7.8 million since year end 2017 to total $243.2 million at June 30, 2018. Securities balances declined $16.1 million since June 30, 2017.  Net losses of $16,000 were realized during the second quarter of 2018 through sales and call activity.  For the first six months of 2018, there have been net gains of $14,000 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 $23.8 million, $22.0 million and $41.4 million at June 30, 2018, December 31, 2017 and June 30, 2017, respectively.  There were federal funds sold of $180,000 at June 30, 2018 and $152,000 at June 30, 2017.  This compares with federal funds purchased of $4.8 million at December 31, 2017. Interest bearing bank balances were $12.0 million at June 30, 2018 compared with $7.3 million at December 31, 2017 and $29.9 million at June 30, 2017.

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

SECURITIES PORTFOLIO
(Unaudited)
















(Dollars in thousands)


30-Jun-18


31-Mar-18


31-Dec-17


30-Jun-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

$

34,745

$

34,339

$

37,978

$

37,601

$

40,473

$

40,256

$

47,450

$

46,829

U.S Government sponsored agencies


9,077


9,124


9,168


9,227


9,247


9,278


2,844


2,790

State, county, and municipal


120,935


120,079


123,949


123,574


124,032


125,760


123,625


125,833

Corporate and other bonds


8,539


8,658


7,702


7,814


7,323


7,460


16,087


16,090

Mortgage backed securities - U.S. Government agencies


5,333


5,135


5,456


5,272


5,551


5,442


4,372


4,254

Mortgage backed securities - U.S. Government sponsored agencies


22,479


21,828


19,207


18,677


16,985


16,638


16,784


16,547

Total securities available for sale

$

201,108

$

199,163

$

203,460

$

202,165

$

203,611

$

204,834

$

211,162

$

212,343




























30-Jun-18


31-Mar-18


31-Dec-17


30-Jun-17



Amortized Cost


Fair Value


Amortized Cost


Fair Value


Amortized Cost


Fair Value


Amortized Cost


Fair Value

Securities Held to Maturity














U.S Government sponsored agencies

$

10,000

$

9,713

$

10,000

$

9,745

$

10,000

$

9,845

$

10,000

$

9,921

State, county, and municipal


33,585


33,792


34,111


34,405


35,678


36,567


36,392


37,310

Mortgage backed securities - U.S. Government agencies


404


409


423


428


468


476


522


533

Total securities held to maturity

$

43,989

$

43,914

$

44,534

$

44,578

$

46,146

$

46,888

$

46,914

$

47,764

Interest bearing deposits at June 30, 2018 were $971.9 million, an increase of $29.2 million from December 31, 2017 and $27.5 million greater than at June 30, 2017. Time deposits less than or equal to $250,000 have shown the largest dollar volume growth during 2018 with $14.9 million in additional balances and now totaling $452.7 million. Time deposits over $250,000 grew by $6.1 million and were $116.7 million at June 30, 2018. NOW accounts grew by $5.9 million and were $163.0 million at June 30, 2018.

As a result primarily of new account promotions at the three branches opened during 2017, money market deposit accounts grew $25.5 million, or 21.3%, from $119.6 million at June 30, 2017 to $145.1 million at June 30, 2018.  NOW accounts grew $20.1 million, or 14.1%, since June 30, 2017. These increases have allowed the Bank to decrease balances with brokered time deposits by $26.5 million over the last year, and those balances were only $9.5 million at June 30, 2018.

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

INTEREST BEARING DEPOSITS

(Unaudited)









(Dollars in thousands)











30-Jun-18


31-Mar-18


31-Dec-17


30-Jun-17

NOW

$

162,984

$

154,236

$

157,037

$

142,838

MMDA


145,071


148,404


143,363


119,582

Savings


94,498


93,724


93,980


90,224

Time deposits less than or equal to $250,000


452,734


435,481


437,810


451,352

Time deposits over $250,000


116,657


114,438


110,546


140,418

Total interest bearing deposits

$

971,944

$

946,283

$

942,736

$

944,414

FHLB advances were $90.7 million at June 30, 2018, compared with $101.4 million at December 31, 2017 and $76.5 million at June 30, 2017.   

Shareholders' equity was $128.6 million at June 30, 2018, $124.0 million at December 31, 2017 and $121.8 million at June 30, 2017.  Shareholder's equity to assets was 9.5% at June 30, 2018, 9.3% at December 31, 2017 and 9.4% at June 30, 2017. 

Asset Quality – non-covered assets

Nonaccrual loans were $9.3 million at June 30, 2018, decreasing $747,000 during the second quarter of 2018 and increasing $317,000 from December 31, 2017. Nonaccrual loan balances declined by $2.2 million, or 18.9%, since June 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-Jun-18


31-Mar-18


31-Dec-17


30-Sep-17


30-Jun-17

Nonaccrual loans

$

9,343

$

10,090

$

9,026

$

12,677

$

11,514

Criticized (special mention) loans


17,400


19,526


13,573


8,200


10,523

Classified (substandard) loans


15,181


14,243


13,264


16,886


17,081

Other real estate owned


3,147


3,166


2,791


2,710


2,387

Total classified and criticized assets

$

35,728

$

36,935

$

29,628

$

27,796

$

29,991

Nonperforming assets totaled $12.5 million at June 30, 2018 compared with $11.8 million at December 31, 2017. Nonperforming assets declined $766,000, or 5.8%, during the second quarter of 2018. Nonperforming assets decreased $1.4 million, or 10.2%, since June 30, 2017.  There were net recoveries of $121,000 in the second quarter of 2018.

The allowance for loan losses equaled 97.3% of nonaccrual loans at June 30, 2018, compared with 88.9% at March 31, 2018, 99.4% at December 31, 2017 and 82.4% at June 30, 2017. The ratio of nonperforming assets to loans and OREO was 1.29% at June 30, 2018, 1.37% at March 31, 2018, 1.25% at December 31, 2017 and 1.60% at June 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



Second


First



Fourth


Third


Second



Quarter


Quarter



Quarter


Quarter


Quarter

Allowance for loan losses:












Beginning of period

$

8,968

$

8,969


$

8,667

$

9,489

$

9,513

Provision for loan losses


-


-



400


150


-

Net (charge-offs) recoveries


121


(1)



(98)


(972)


(24)

End of period

$

9,089

$

8,968


$

8,969

$

8,667

$

9,489

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-Jun-18



31-Mar-18



31-Dec-17


30-Sep-17


30-Jun-17

Nonaccrual loans

$

9,343


$

10,090


$

9,026

$

12,677

$

11,514

Loans past due over 90 days and accruing interest


-



-



-


-


-

Total nonperforming loans


9,343



10,090



9,026


12,677


11,514

Other real estate owned


3,147



3,166



2,791


2,710


2,387

Total nonperforming assets

$

12,490


$

13,256


$

11,817

$

15,387

$

13,901














Allowance for loan losses to loans


0.94

%


0.93

%


0.95

%

0.97

%

1.10

Allowance for loan losses to nonaccrual loans


97.28



88.88



99.37


68.37


82.41

Nonperforming assets to loans and other real estate


1.29



1.37



1.25


1.72


1.60

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


0.05

%


-

%


0.04

%

0.45

%

0.01

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

NONACCRUAL LOANS (excluding PCI loans)

(Unaudited)






(Dollars in thousands)


30-Jun-18


31-Dec-17


30-Jun-17




Amount


Amount


Amount

Mortgage loans on real estate:











Residential 1-4 family


$

1,578


$

1,962


$

2,130


Commercial



2,274



1,498



3,548


Construction and land development



5,184



4,277



4,296


Second mortgages



-



68



-


Agriculture



-



-



258


Total real estate loans


$

9,036


$

7,805


$

10,232

Commercial loans



307



1,214



1,272

Consumer installment loans



-



7



10


Gross loans


$

9,343


$

9,026


$

11,514












Capital Requirements

The Company's ratio of total risk-based capital was 13.3% at June 30, 2018 compared with 12.7% at December 31, 2017.  The tier 1 risk-based capital ratio was 12.5% at June 30, 2018 and 11.9% at December 31, 2017. The Company's tier 1 leverage ratio was 10.0% at June 30, 2018 and 9.7% 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 12.1% at June 30, 2018 and 11.5% at December 31, 2017.

Earnings Conference Call and Webcast

The Company will host a conference call for interested parties on Thursday, July 26, 2018, at 10:00 a.m. Eastern Time to discuss the financial results for the second 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 July 26, 2018, until 9:00 a.m. Eastern Time on August 9, 2018. The replay will be available by dialing 877-344-7529 and entering access code 10122400 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, 19 of which are in Virginia and six of which are in Maryland.  The Bank also operates one loan production office in Virginia.  The Bank will open a new branch office in the Stonehenge Village development in Midlothian, Virginia on July 31, 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-Jun-18


31-Dec-17


30-Jun-17

Assets







Cash and due from banks

$

11,607

$

14,642

$

11,342

Interest bearing bank deposits


12,020


7,316


29,908

Federal funds sold


180


-


152

Total cash and cash equivalents


23,807


21,958


41,402








Securities available for sale, at fair value


199,163


204,834


212,343

Securities held to maturity, at cost


43,989


46,146


46,914

Equity securities, restricted, at cost


8,935


9,295


8,048

Total securities


252,087


260,275


267,305








Loans


967,361


942,018


864,049

Purchased credit impaired (PCI) loans


39,911


44,333


48,387

Allowance for loan losses


(9,089)


(8,969)


(9,489)

Allowance for loan losses – PCI loans


(200)


(200)


(200)

Net loans


997,983


977,182


902,747








Bank premises and equipment, net


30,423


30,198


29,771

Bank premises and equipment held for sale


552


-


-

Other real estate owned


3,147


2,791


2,387

Bank owned life insurance


28,466


28,099


27,723

Core deposit intangibles, net


-


-


82

Other assets


17,403


15,687


19,090

Total assets

$

1,353,868

$

1,336,190

$

1,290,507








Liabilities







Deposits:







Noninterest bearing

$

151,956

$

153,028

$

138,471

Interest bearing


971,944


942,736


944,414

Total deposits


1,123,900


1,095,764


1,082,885








Federal funds purchased


-


4,849


-

Federal Home Loan Bank advances


90,691


101,429


76,494

Trust preferred capital notes


4,124


4,124


4,124

Other liabilities


6,509


6,021


5,247

Total liabilities


1,225,224


1,212,187


1,168,750








Shareholders' Equity







 

Common stock (200,000,000 shares authorized $0.01 par value;
22,111,495, 22,072,523 and 22,037,221 shares issued and
outstanding, respectively)


221


221


220

Additional paid in capital


148,242


147,671


147,250

Retained deficit


(17,556)


(23,932)


(25,701)

Accumulated other comprehensive (loss) income


(2,263)


43


(12)

Total shareholders' equity


128,644


124,003


121,757

Total liabilities and shareholders' equity

$

1,353,868

$

1,336,190

$

1,290,507

 

 

COMMUNITY BANKERS TRUST CORPORATION









CONSOLIDATED STATEMENTS OF INCOME









UNAUDITED
















(Dollars in thousands)

YTD


Three months ended


YTD


Three months ended


2018


30-Jun-18

31-Mar-18


2017


30-Jun-17

31-Mar-17

Interest and dividend income
















Interest and fees on loans

$

22,229


$

11,353

$

10,876


$

19,549


$

9,952

$

9,597

Interest and fees on PCI loans


2,672



1,274


1,398



2,932



1,453


1,479

Interest on federal funds sold


1



1


-



-



-


-

Interest on deposits in other banks


109



69


40



78



52


26

Interest and dividends on securities
















  Taxable


2,452



1,266


1,186



2,406



1,157


1,249

  Nontaxable


1,126



547


579



1,203



606


597

Total interest and dividend income


28,589



14,510


14,079



26,168



13,220


12,948

Interest expense
















Interest on deposits


4,498



2,355


2,143



3,723



1,944


1,779

Interest on borrowed funds


977



508


469



604



302


302

Total interest expense


5,475



2,863


2,612



4,327



2,246


2,081

















Net interest income


23,114



11,647


11,467



21,841



10,974


10,867

















Provision for loan losses


-



-


-



-



-


-

Net interest income after provision for loan losses


23,114



11,647


11,467



21,841



10,974


10,867

















Noninterest income
















Service charges and fees


1,192



611


581



1,107



582


525

Gain (loss) on securities transactions, net


14



(16)


30



132



37


95

Gain on sale of loans


53



53


-



-



-


-

Income on bank owned life insurance


367



184


183



384



192


192

Mortgage loan income


191



80


111



104



71


33

Other


351



223


128



303



155


148

Total noninterest income


2,168



1,135


1,033



2,030



1,037


993

















Noninterest expense
















Salaries and employee benefits


10,868



5,019


5,849



9,483



4,843


4,640

Occupancy expenses


1,581



769


812



1,472



740


732

Equipment expenses


658



344


314



544



260


284

FDIC assessment


404



198


206



365



164


201

Data processing fees


985



499


486



965



477


488

Amortization of intangibles


-



-


-



816



339


477

Other real estate expenses, net


95



45


50



61



34


27

Other operating expenses


2,962



1,313


1,649



2,970



1,528


1,442

Total noninterest expense


17,553



8,187


9,366



16,676



8,385


8,291

















Income before income taxes


7,729



4,595


3,134



7,195



3,626


3,569

Income tax expense


1,353



813


540



1,768



692


1,076

Net income

$

6,376


$

3,782

$

2,594


$

5,427


$

2,934

$

2,493

 

 

COMMUNITY BANKERS TRUST CORPORATION







CONSOLIDATED STATEMENTS OF INCOME







UNAUDITED











(Dollars in thousands)

Three months ended


30-Jun-18

31-Mar-18


31-Dec-17


30-Sep-17


30-Jun-17

Interest and dividend income











Interest and fees on loans

$

11,353

$

10,876

$

10,625

$

10,127

$

9,952

Interest and fees on PCI loans


1,274


1,398


1,378


1,423


1,452

Interest on federal funds sold


1


-


-


1


-

Interest on deposits in other banks


69


40


53


65


53

Interest and dividends on securities











  Taxable


1,266


1,186


1,105


1,171


1,157

  Nontaxable


547


579


597


602


606

Total interest and dividend income


14,510


14,079


13,758


13,389


13,220

Interest expense











Interest on deposits


2,355


2,143


2,121


2,053


1,944

Interest on borrowed funds


508


469


388


310


302

Total interest expense


2,863


2,612


2,509


2,363


2,246












Net interest income


11,647


11,467


11,249


11,026


10,974












Provision for loan losses


-


-


400


150


-

Net interest income after provision for loan losses


11,647


11,467


10,849


10,876


10,974












Noninterest income











Service charges and fees


611


581


572


559


582

Gain (loss) on securities transactions, net


(16)


30


30


48


37

Gain on sale of loans


53


-


-


-


-

Income on bank owned life insurance


184


183


187


188


192

Mortgage loan income


80


111


79


58


71

Other


223


128


177


145


155

Total noninterest income


1,135


1,033


1,045


998


1,037












Noninterest expense











Salaries and employee benefits


5,019


5,849


4,990


4,951


4,843

Occupancy expenses


769


812


801


857


740

Equipment expenses


344


314


295


305


260

FDIC assessment


198


206


176


185


164

Data processing fees


499


486


457


501


477

Amortization of intangibles


-


-


20


62


339

Other real estate expenses, net


45


50


64


37


34

Other operating expenses


1,313


1,649


1,515


1,641


1,528

Total noninterest expense


8,187


9,366


8,318


8,539


8,385












Income before income taxes


4,595


3,134


3,576


3,335


3,626

Income tax expense


813


540


4,216


919


692

Net income (loss)

$

3,782

$

2,594

$

(640)

$

2,416

$

2,934

 

 

COMMUNITY BANKERS TRUST CORPORATION















NET INTEREST MARGIN ANALYSIS

















AVERAGE BALANCE SHEETS

UNAUDITED


















(Dollars in thousands)




















Three months ended June 30, 2018



Three months ended June 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

$

958,955


$

11,353


4.75

%


$

860,393


$

9,952


4.64

%


PCI loans,  including fees


41,157



1,274


12.24




49,253



1,453


11.80



   Total loans


1,000,112



12,627


5.06




909,646



11,405


5.03



Interest bearing bank balances


14,819



69


1.85




19,225



52


1.10



Federal funds sold


87



1


1.82




137



-


1.04



Securities (taxable)


174,781



1,266


2.90




182,227



1,157


2.54



Securities (tax exempt)(1)


76,864



693


3.61




85,972



918


4.27



Total earning assets


1,266,663



14,656


4.64




1,197,207



13,532


4.53



Allowance for loan losses


(9,271)









(9,697)








Non-earning assets


92,502









89,222








   Total assets

$

1,349,894








$

1,276,732


























LIABILITIES AND



















SHAREHOLDERS' EQUITY



















Demand - interest bearing

$

301,515


$

328


0.44



$

241,376


$

154


0.26



Savings


94,096



61


0.26




91,723



60


0.26



Time deposits


561,056



1,966


1.41




598,965



1,730


1.16



Total interest bearing deposits


956,667



2,355


0.99




932,064



1,944


0.84



Short-term borrowings


4,771



26


2.20




517



2


1.37



FHLB and other borrowings


103,188



482


1.87




84,761



300


1.42



Total interest bearing liabilities


1,064,626



2,863


1.08




1,017,342



2,246


0.89



Noninterest bearing deposits


152,498









133,320








Other liabilities


5,909









5,654








Total liabilities


1,223,033









1,156,316








Shareholders' equity


126,861









120,416








Total liabilities and



















   Shareholders' equity

$

1,349,894








$

1,276,732








Net interest earnings




$

11,793








$

11,286





Interest spread







3.56

%








3.64

%


Net interest margin







3.73

%








3.78

%





















Tax-equivalent adjustment:



















Securities




$

146








$

312























(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)




















Six months ended June 30, 2018



Six months ended June 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

$

951,201


$

22,229


4.71%

%


$

849,839


$

19,549


4.64

%


PCI loans,  including fees


42,257



2,672


12.58%




50,011



2,932


11.66



   Total loans


993,458



24,901


5.05%




899,850



22,481


5.04



Interest bearing bank balances


11,955



109


1.83%




14,207



78


1.11



Federal funds sold


72



1


1.71%




93



-


1.00



Securities (taxable)


175,667



2,452


2.79%




182,734



2,406


2.63



Securities (tax exempt)(1)


79,091



1,424


3.60%




85,353



1,822


4.27



Total earning assets


1,260,243



28,887


4.62%




1,182,237



26,787


4.57



Allowance for loan losses


(9,224)









(9,709)








Non-earning assets


90,567









88,919








   Total assets

$

1,341,586








$

1,261,447


























LIABILITIES AND



















SHAREHOLDERS' EQUITY



















Demand - interest bearing

$

301,415


$

659


0.44%



$

240,110


$

295


0.25



Savings


93,604



121


0.26%




91,829



121


0.27



Time deposits


556,546



3,718


1.35%




586,722



3,307


1.14



Total interest bearing deposits


951,565



4,498


0.95%




918,661



3,723


0.82



Short-term borrowings


3,563



37


2.12%




1,306



7


1.14



FHLB and other borrowings


104,354



940


1.79%




87,354



597


1.38



Total interest bearing liabilities


1,059,482



5,475


1.04%




1,007,321



4,327


0.87



Noninterest bearing deposits


150,446









130,091








Other liabilities


5,731









5,534








Total liabilities


1,215,659









1,142,946








Shareholders' equity


125,927









118,500








Total liabilities and



















   shareholders' equity

$

1,341,586








$

1,261,446








Net interest earnings




$

23,412








$

22,460





Interest spread







3.58%

%








3.70

%


Net interest margin







3.75%

%








3.83

%





















Tax-equivalent adjustment:



















Securities




$

299








$

619























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




 

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/community-bankers-trust-corporation-reports-results-for-second-quarter-of-2018-300686980.html

SOURCE Community Bankers Trust Corporation

View Comments and Join the Discussion!