2014

Community Bankers Trust Corporation Reports First Quarter Results for 2012

GLEN ALLEN, Va., April 27, 2012 /PRNewswire/ -- Community Bankers Trust Corporation (the "Company") (NYSE Amex: BTC), the holding company for Essex Bank (the "Bank"), today reported net income of $990,000 in the first quarter of 2012.  This compared with a net loss of $1.2 million in the first quarter of 2011 and net income of $695,000 in the fourth quarter of 2011.  Net income available to common stockholders was $714,000 in the first quarter of 2012, compared with a net loss available to common stockholders of $1.5 million in the first quarter of 2011 and net income available to common stockholders of $423,000 in the fourth quarter of 2011.

Rex L. Smith, III, President and Chief Executive Officer of the Company and the Bank, stated, "The first quarter was very positive for Essex Bank and our stockholders.  We were granted regulatory permission to make both our first TARP dividend payment in almost two years and payments on our trust preferred securities.  In addition, we were able to deliver a strong financial performance for the quarter.  Our net income increased by over 42% over the previous quarter.  Our continued improvement in our net income comes from our intense focus on the critical performance drivers of our business.  We continue to decrease nonperforming loans quarter over quarter.  We also had solid organic growth in quality new loans in both the commercial business and owner occupied real estate categories, and we are committed to holding total noninterest expenses down. 

"We are confident in our ability to continue these positive trends and to accomplish the vision we have laid out to be a strong and vital company.  We have taken every possible precaution to not just solve problem credits, but also predict potential problems and reserve for them in advance.  Most recently we completed a detailed review of our entire home equity portfolio and set aside additional reserves for those that may have problems if the economy continues to lag. We constantly and consistently work towards resolving existing credit problems, but we are also building new solid relationships with customers in our markets. 

"We continue to add experienced loan officers in our major business lines who are aggressively pursuing new relationships for the Bank.  As other banks in our markets with less capital are forced to contract, this will allow us the opportunity to gain valuable business.  The results of all our work are becoming evident in our financial statements, and we will persist in our endeavors until we generate a strong and competitive return for our stockholders. "

Key highlights for the first quarter of 2012 include the following:

  • Following the receipt of regulatory approval to do so, the Company paid $287,000 to the United States Department of Treasury, representing one quarterly cash dividend with respect to its TARP preferred stock and the outstanding interest on all previously deferred dividend payments. The Company also paid $254,000 to the holders of its trust preferred securities, representing the outstanding and previously deferred interest on those securities.
  • Non-covered nonaccrual loans continue to decline and were $25.6 million at March 31, 2012, down $16.4 million, or 39.1%, from March 31, 2011 and down $2.9 million, or 10.3%, from December 31, 2011.
  • Non-covered loans were $548.8 million at March 31, 2012, an increase of $4.1 million from December 31, 2011 and $34.5 million from March 31, 2011.
  • Noninterest income increased by $395,000 on a linked quarter basis and $349,000 over the same quarter in 2011.
  • Noninterest expense declined $217,000, or 2.5%, on a linked quarter basis and declined $801,000, or 8.7%, from the first quarter in 2011.
  • Non-covered nonaccrual loans as a percentage of total non-covered loans were 4.66% at March 31, 2012, declining from 5.24% at December 31, 2011 and 8.17% at March 31, 2011.

RESULTS OF OPERATIONS

For the quarter ended March 31, 2012, net income available to common stockholders was $714,000, or $0.03 per common share on a diluted basis, compared with a net loss available to common stockholders of $1.5 million, or $0.07 per common share on a diluted basis, for the quarter ended March 31, 2011.  The change in earnings was the result of a reduction of $1.2 million in provision for loan losses, an increase of $1.0 million in net interest income, a reduction of $801,000 in noninterest expenses and an increase of $349,000 in noninterest income.

The following table presents summary income statements for the three months ended March 31, 2012, December 31, 2011 and March 31, 2011.

  SUMMARY INCOME STATEMENT







  (Dollars in thousands)


For the three months ended



March 31, 2012


December 31, 2011

$

March 31, 2011

Interest income

$

13,809

$

13,877

13,394

Interest expense


2,712


2,864


3,311

Net interest income 


11,097


11,013


10,083

Provision for loan losses


250


-


1,498

Net interest income after provision for







  loan losses


10,847


11,013


8,585

Noninterest income


(1,057)


(1,452)


(1,406)

Noninterest expense


8,410


8,627


9,211

Net income/(loss) before income taxes


1,380


934


(2,032)

Income tax (expense) benefit


(390)


(239)


838

Net income (loss)

$

990

$

695

$

(1,194)

Dividends on preferred stock


221


-


-

Accretion of preferred stock discount


55


51


51

Preferred dividends not paid


-


221


221

Net income (loss) available to common







  stockholders

$

714

$

423

$

(1,466)








 Net income (loss) per share available to







  common stockholders:







Basic

$

0.03

$

0.02

$

(0.07)

Diluted

$

0.03

$

0.02

$

(0.07)











Interest Income

Interest income for the first quarter of 2012 was $13.8 million, a slight decrease of $68,000, or 0.5%, from $13.9 million in the fourth quarter of 2011.  Interest and fee income on loans held stable, declining a modest $46,000, and was $11.6 million for each of the first quarter of 2012 and the fourth quarter of 2011.  Securities interest income, including interest on federal funds sold and deposits in other banks, declined slightly, $22,000, and was $2.2 million for each quarter.

A decline in the yield on earning assets, from 5.90% in the fourth quarter of 2011 to 5.79% in the first quarter of 2012, was virtually offset by volume increases in earning assets, from $947.8 million in the fourth quarter of 2011 to $958.9 million in the first quarter of 2012.

Interest income increased $415,000, or 3.1%, from $13.4 million in the first quarter of 2011 to $13.8 million for the same period in 2012.  Increases in both the amount of average interest earning assets and the yield on interest earning assets contributed to this increase.  Average interest earning assets increased from $950.7 million in the first quarter of 2011 to $958.9 million in the first quarter of 2012.  The yield on interest assets increased from 5.73% for the first quarter of 2011 to 5.79% for the first quarter of 2012.

Interest Expense

Interest expense was $2.7 million in the first quarter of 2012.  This is a decrease of $152,000, or 5.3%, from interest expense of $2.9 million in the fourth quarter of 2011.  Despite average interest bearing liabilities increasing $7.2 million during the first quarter of 2012, interest expense was lower as a result of a decline in the cost of interest bearing liabilities, from 1.27% in the fourth quarter of 2011 to 1.20% in the first quarter of 2012.

Interest expense declined 18.1%, or $599,000, from $3.3 million in the first quarter of 2011 to $2.7 million for the first quarter of 2012.  The average balance of interest bearing liabilities declined over this time frame, from $919.2 in the first quarter of 2011 to $907.8 million in the first quarter of 2012.  Additionally, the cost of interest bearing liabilities declined from 1.44% in the first quarter of 2011 to 1.20% in the first quarter of 2012.

Net Interest Income

Net interest income was $11.1 million for the quarter ended March 31, 2012, compared with $11.0 million for the quarter ended December 31, 2011.  On a tax equivalent basis, net interest income was $11.2 million in the first quarter of 2012 compared with $11.1 million for the fourth quarter of 2011.  The tax equivalent net interest margin decreased from 4.69% in the fourth quarter of 2011 to 4.65% for the first quarter of 2012.  This was due to a decline in the net interest spread, from 4.63% to 4.59%, on a linked quarter basis.

Net interest income increased $1.0 million, or 10.1%, from $10.1 million in the first quarter of 2011 to $11.1 million in the first quarter of 2012.  The net interest margin improved due to an increase in the yield on earning assets, from 5.73% in the first quarter of 2011, to 5.79% in the first quarter of 2012.  This improvement was driven by performance on loans covered by the shared-loss agreements with the FDIC. Additionally, the cost of interest bearing liabilities declined 24 basis points, or $599,000, providing additional improvements in both the interest spread and net interest margin.  The net interest spread was 4.29% and 4.59% and the net interest margin was 4.33% and 4.65%, respectively, in the first quarter of 2011 and the first quarter of 2012.

The following table presents the Company's net interest margin, on a tax-equivalent basis, for the three months ended March 31, 2012, December 31, 2011 and March 31, 2011.  

NET INTEREST MARGIN



(Dollars in thousands)






For the three months ended





3/31/2012


12/31/2011


3/31/2011











Average interest earning assets



$           958,921


$           947,751


$              950,678


Interest income



$             13,809


$             13,877


$                13,394


Interest income - tax equivalent



$             13,870


$             13,968


$                13,607


Yield on interest earning assets



5.79%


5.90%


5.73%


Average interest bearing liabilities



$           907,829


$           900,610


$              919,214


Interest expense



$               2,712


$               2,864


$                  3,311


Cost of interest bearing liabilities



1.20%


1.27%


1.44%


Net interest income



$             11,097


$             11,013


$                10,083


Net interest income - tax equivalent



$             11,158


$             11,104


$                10,295


Interest spread



4.59%


4.63%


4.29%


Net interest margin



4.65%


4.69%


4.33%


Provision for Loan Losses

The Company reported total provision for loan losses of $250,000 at March 31, 2012.  The provision for loan losses for non-covered loans was $500,000 for the quarter ended March 31, 2012.  This compares with no provision for loan losses for non-covered loans in the fourth quarter of 2011 and $1.5 million for the first quarter of 2011. The provision for loan losses for covered loans was credited $250,000 in the first quarter of 2012 as a result of an improved risk profile within the covered loan portfolio. 

The ratio of the allowance for loan losses to non-covered nonaccrual loans was 54.4% at March 31, 2012, compared with 52.0% at December 31, 2011 and 51.3% at March 31, 2011.  The ratio of the allowance for loan losses to total non-covered loans was 2.54% at March 31, 2012, compared with 2.72% at December 31, 2011 and 4.19% at March 31, 2011.  The decrease in this ratio from March 31, 2011 to March 31, 2012 is the result of the Company's aggressive charge-off strategy, coupled with a lower volume of nonperforming loans.  In addition, the Bank held $41.8 million in government-guaranteed loans of the United States Department of Agriculture (USDA) at March 31, 2012, with no allowance for loan losses required because of the guarantee.   Net charged-off loans have trended lower since March 31, 2011 and were $1.4 million for the first quarter of 2012, compared with $929,000 for the fourth quarter of 2011 and $5.5 million in the first quarter of 2011.

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

CREDIT QUALITY







(Dollars in thousands)

2012


2011


First


Fourth

Third

Second

First


Quarter


Quarter

Quarter

Quarter

Quarter

Allowance for loan losses:







Beginning of period

$  14,835


$  15,764

$  16,803

$  21,542

$  25,543

Provision for loan losses

500


-

-

-

1,498

Charge-offs

(1,557)


(969)

(1,366)

(4,825)

(5,634)

Recoveries

157


40

327

86

135

Net charge-offs

$    (1,400)


$    (929)

$  (1,039)

$  (4,739)

$  (5,499)








End of period

$ 13,935


$ 14,835

$  15,764

$  16,803

$  21,542

Noninterest Income

Noninterest income was negative $1.1 million in the first quarter of 2012 compared with negative $1.5 million for the fourth quarter of 2011.  This represents an improvement of $395,000, or 27.2%, on a linked quarter basis.  Indemnification asset amortization is the largest component of noninterest income, and it can be either positive or negative.  For the Company, it is negative due to better than expected performance by borrowers within the covered loan portfolio, which results in the write-down of the FDIC indemnification asset reported in noninterest income.  Indemnification asset amortization was $1.9 million in the first quarter of 2012, compared with $2.6 million in the fourth quarter of 2011.  Also positively influencing noninterest income in the first quarter of 2012 compared with the fourth quarter of 2011 was a $160,000 reduction in loss on sale of OREO properties, from $337,000 in the fourth quarter of 2011 to $177,000 in the first quarter of 2012.

Gains/(loss) on sale of securities  declined on a linked quarter basis.  Securities losses of $116,000 were recognized in the first quarter of 2012.  The Company sold lower yielding mortgage backed securities, at a loss, and reinvested in higher yielding taxable municipal securities.  Securities gains of $306,000 were recognized in the fourth quarter of 2011.  Also offsetting increases in noninterest income in the first quarter of 2012 compared with the fourth quarter of 2011 were service charges on deposit accounts, which declined $30,000, from $647,000 to $617,000, and other noninterest income, which declined $34,000, from $535,000 to $501,000.

When comparing the first quarter of 2012 to the first quarter of 2011, noninterest income increased 24.8%, or $349,000.  Noninterest income was negative $1.4 million in the first quarter of 2011 compared with negative $1.1 million for the same period in 2012.  Indemnification asset amortization was the largest contributor to the increase, as it declined by $863,000, from negative $2.7 million in the first quarter of 2011 to negative $1.9 million in the first quarter of 2012.  Gain/(loss) on sale of OREO declined from a loss of $612,000 in the first quarter of 2011 to a loss of $177,000 in the first quarter of 2012.  This had a positive impact of $435,000 on noninterest income for the comparison period.  Service charges on deposit accounts increased $41,000 from the first quarter of 2011 to the same period in 2012 and were $576,000 and $617,000, respectively.

Offsetting these increases in noninterest income in the first quarter of 2012 compared to the same period in 2011 were reductions in gains/(loss) on sale of securities and other noninterest income.  Gains/(loss) on sale of securities decreased by $777,000, from a $661,000 gain in the first quarter of 2011 to  a loss of $116,000 for the same period in 2012.  Other noninterest income decreased $213,000 over the reporting period and was $714,000 in the first quarter of 2011 and $501,000 in the first quarter of 2012.  This decrease is the result of fewer reimbursable losses from the FDIC for problem credit dispositions under the shared-loss agreements.

Noninterest Expense

Noninterest expense was $8.4 million in the first quarter of 2012, a decrease of $217,000, or 2.5%, from noninterest expense of $8.6 million for the fourth quarter of 2011. Several line items in noninterest expense experienced decreases on a linked quarter basis. Other operating expenses declined $232,000, professional fees declined $41,000, legal fees declined $39,000, occupancy expenses declined $29,000, and equipment expense declined $3,000. Within other operating expenses, advertising expense declined $80,000, bank franchise tax declined $69,000, credit expense declined $18,000, and directors expense declined $18,000.

Offsetting these noninterest expense decreases in the first quarter of 2012 compared to the fourth quarter of 2011 were increases in salaries and employee benefits, data processing expense, and FDIC assessment.  Salaries and employee benefits of $4.2 million increased $60,000 when comparing the first quarter of 2012 to the fourth quarter of 2011. Data processing expense increased $58,000 while FDIC assessment increased by $9,000.

Noninterest expense was $8.4 million in the first quarter of 2012 and decreased by 8.7%, or $801,000, from noninterest expense of $9.2 million in the first quarter of 2011. Several line items within noninterest expense exhibited decreases, led by a $288,000 reduction in FDIC assessment, due to the smaller deposit base and a revision in the FDIC methodology, and a decline of $207,000 in other operating expense.  Occupancy expenses declined $183,000, professional fees declined $106,000, legal fees declined $81,000, and equipment expense declined $35,000. Within other operating expenses, bank franchise tax declined $107,000, credit expense declined $58,000, and advertising expense declined $38,000.

Offsetting these expense decreases were increases of $65,000 in data processing fees, and $34,000 in salaries and employee benefits.

Income Taxes

Income tax expense was $390,000 for the three months ended March 31, 2012, compared with income tax expense of $239,000 for the fourth quarter of 2011.  Income tax benefit of $838,000 was recognized in the first quarter of 2011.

FINANCIAL CONDITION

At March 31, 2012, the Company had total assets of $1.103 billion, an increase of $10.2 million, or 1.0%, from total assets of $1.092 billion at December 31, 2011.  Total loans, including $94.7 million in loans covered by the FDIC shared-loss agreements, were $643.5 million at March 31, 2012, increasing from $642.3 million at December 31, 2011.  The carrying value of covered loans declined $2.9 million, or 2.9%, from December 31, 2011 to March 31, 2012.  Non-covered loans increased $4.1 million, from $544.7 million at December 31, 2011 to $548.8 million at March 31, 2012.  The largest increase occurred in commercial real estate loans, which increased $10.8 million, or 4.9%, from $220.5 million at December 31, 2011 to $231.3 million at March 31, 2012.  Construction and land development loans declined $8.5 million, or 11.2%, from $75.7 million at December 31, 2011 to $67.2 million at March 31, 2012.

During the third quarter of 2011, the Bank began purchasing government-guaranteed loans under programs administered by the USDA.  The Bank has purchased only the government-guaranteed portion of any of the loans that have been originated by other financial institutions.   In the first quarter of 2012, $5.3 million in USDA loan balances were added, bringing the total to $41.8 million at March 31, 2012.  USDA balances are reflected in non-covered loans and are classified according to collateral and purpose.

The allowance for loan losses to non-covered loans was 2.54% at March 31, 2012 compared with 2.72% at December 31, 2011.  Excluding USDA government-guaranteed loan balances, the allowance for loan losses to total non-covered loans would have been 2.75% at March 31, 2012 and 2.92% at December 31, 2011.

The following table shows the composition of the Company's non-covered loan portfolio on a linked quarter basis.

NON-COVERED LOANS





(Dollars in thousands)






















March 31, 2012


December 31, 2011







Amount

% of Non-
Covered Loans


Amount

% of Non-
Covered Loans

Mortgage loans on real estate:








Residential 1-4 family


$     127,111

23.15%


$     127,200

23.34%


Commercial



231,274

42.13%


220,471

40.46%


Construction and land development

67,240

12.25%


75,691

13.89%


Second mortgages


8,458

1.54%


8,129

1.49%


Multifamily



19,785

3.60%


19,746

3.62%


Agriculture



10,897

1.99%


11,444

2.10%



Total real estate loans


464,765

84.66%


462,681

84.90%

Commercial loans



73,959

13.47%


72,149

13.24%

Consumer installment loans


8,597

1.57%


8,461

1.55%

All other loans



1,659

0.30%


1,659

0.31%




Gross loans


548,980

100.00%


544,950

100.00%

Allowance for loan losses


(13,935)



(14,835)


Net unearned income on loans


(191)



(232)


Non-covered loans, net of unearned income

$    534,854



$    529,883















The Company's securities portfolio, excluding equity securities, decreased $2.8 million, or 1.0%, during the quarter ended March 31, 2012 to $294.4 million. The Company had cash and cash equivalents of $35.8 million at March 31, 2012, compared with $21.8 million at December 31, 2011.  There were Federal funds sold  of $2.5 million at March 31, 2012 compared with no Federal funds sold at December 31, 2011. 

The following table shows the composition of the Company's securities portfolio, excluding equity securities, on a linked quarter basis.

SECURITIES PORTFOLIO

(Dollars in thousands)


March 31, 2012


December 31, 2011



Amortized Cost


Fair Value


Amortized Cost

Fair Value

Securities Available for Sale









U.S. Treasury issue and other









      U.S. Government agencies

$

16,384

$

16,479

$

8,260

$

8,447

State, county and municipal


78,078


81,372


58,183


62,043

Corporate and other bonds


6,788


6,739


4,801


4,631

Mortgage backed securities


129,945


130,721


156,582


157,643

Total securities available for sale

$

231,195

$

235,311

$

227,826

$

232,764












March 31, 2012


December 31, 2011



Amortized Cost


Fair Value


Amortized Cost

Fair Value

Securities Held to Maturity









State, county and municipal

$

12,161

$

13,311

$

12,168

$

13,479

Mortgage backed securities


46,956


49,522


52,254


55,106

Total securities held to maturity

$

59,117

$

62,833

$

64,422

$

68,585



















Interest bearing deposits at March 31, 2012 were $867.0 million, a decrease of $1.5 million from December 31, 2011. NOW accounts declined $9.4 million, or 7.3%, from $128.8 million at December 31, 2011 to $119.4 million at March 31, 2012.  Time deposits less than $100,000 declined $8.4 million, from $326.4 million at December 31, 2011 to $318.0 million at March 31, 2012.  Time deposits $100,000 and over increased $15.6 million, or 6.8%, from $228.1 million at December 31, 2011 to $243.7 million at March 31, 2012. 

The following table details the mix of interest bearing deposits at March 31, 2012, December 31, 2011 and March 31, 2011.

INTEREST BEARING DEPOSITS




(Dollars in thousands)














March 31, 2012


December 31, 2011


March 31, 2011


NOW


$        119,356


$        128,758


$                 105,870


MMDA


113,365


115,397


127,284


Savings


72,587


69,872


66,733


Time deposits less than $100,000

318,016


326,383


346,018


Time deposits $100,000 and over

243,678


228,128


219,508


    Total interest bearing deposits

$        867,002


$        868,538


$                  865,413


The Company had Federal Home Loan Bank (FHLB) advances of $37.0 million at each of March 31, 2012 and December 31, 2011.

Asset Quality – non-covered assets

Nonaccrual loans were $25.6 million at March 31, 2012, compared with $28.5 million at December 31, 2011.  Nonaccrual loans were $42.0 million at March 31, 2011 and have declined each quarter since.  The first quarter 2012 decrease of $2.9 million, or 10.3%, was comprised of $3.2 million in additions to nonaccrual loans, $3.1 million of loans transferred to other real estate and $3.0 million in paydowns and charge-offs. Total nonperforming assets decreased $2.1 million from $40.8 million at December 31, 2011 to $38.7 million at March 31, 2012. Total charge-offs for the first quarter of 2012 were $1.6 million and recoveries were $157,000.  Non-covered other real estate owned increased $2.4 million, from $10.3 million at December 31, 2011 to $12.7 million at March 31, 2012. This change reflects additions of $3.1 million and reductions by sales and writedowns of $732,000. Write-downs and transfers were $0 for the fourth quarter of 2011.

The ratio of nonperforming assets to loans and other real estate declined from 7.35% at December 31, 2011 to 6.89% at March 31, 2012. The ratio of the allowance for loan losses to nonperforming assets was 36.01% at March 31, 2012, compared with 36.36% at December 31, 2011.

The following table sets forth selected asset quality data, excluding FDIC covered assets, and ratios for the periods indicated:

ASSET QUALITY (NON-COVERED)

2012


2011


(Dollars in thousands)

First


Fourth

Third

Second

First



Quarter


Quarter

Quarter

Quarter

Quarter










Nonaccruing loans

$  25,601


$  28,542

$  36,177

$  37,736

$  42,029










Loans past due over 90 days and accruing interest

403


2,005

80

-

282


Total nonperforming non-covered loans

$  26,004


$  30,547

$  36,257

$  37,736

$  42,311










Other real estate owned non-covered

12,696


10,252

8,858

12,393

7,332


Total nonperforming non-covered assets

$   38,700


$   40,799

$  45,115

$  50,129

$  49,643










Allowance for loan losses

$   13,935


$   14,835

$  15,764

$  16,803

$  21,542










Average loans during quarter, net of unearned income

$  549,019


$  521,194

$  498,201

$  506,752

$  517,805


Loans, net of unearned income

$  548,789


$  544,718

$  505,165

$  501,056

$  514,276










Allowance for loan losses to loans

2.54%


2.72%

3.12%

3.35%

4.19%


Allowance for loan losses to nonperforming assets

36.01%


36.36%

34.94%

33.52%

43.39%


Allowance for loan losses to nonaccrual loans

54.43%


51.97%

43.57%

44.53%

51.26%


Nonperforming assets to loans and other real estate

6.89%


7.35%

8.78%

9.76%

9.52%


Net charge-offs for quarter to average loans, annualized

1.02%


0.71%

0.83%

3.74%

4.25%


A further breakout of nonaccrual loans, excluding covered loans, at March 31, 2012 and December 31, 2011 is below:

NON-COVERED NONACCRUAL LOANS



(Dollars in thousands)









March 31, 2012


December 31, 2011



Amount of
Nonaccrual
Loans


% of
Non-covered
Loans


Amount of
Nonaccrual Loans


% of
N
on-covered
Loans


Mortgage loans on real estate:









Residential 1-4 family

$5,677


1.03%


$5,320


0.98%


Commercial

8,240


1.50%


9,187


1.69%


Construction and land development

10,388


1.89%


12,718


2.33%


Second mortgages

185


0.03%


189


0.04%


Multifamily





Agriculture

54


0.01%


53


0.01%


  Total real estate loans

24,544


4.47%


27,467


5.04%


Commercial loans

880


0.16%


1,003


0.18%


Consumer installment loans

177


0.03%


72


0.01%


All other loans





Gross loans

$25,601


4.66%


$28,542


5.24%


Capital Requirements

Stockholders' equity at March 31, 2012 was $111.4 million, or 10.1% of total assets, compared with stockholders' equity of $111.2 million, or 10.2% of total assets at December 31, 2011.

The Company's ratio of total risk-based capital was 16.4% at March 31, 2012 compared to 16.2% at December 31, 2011.  The tier 1 risk-based capital ratio was 15.2% at March 31, 2012 and 15.0% at December 31, 2011. The Company's tier 1 leverage ratio was 9.0% at March 31, 2012 and 8.9% at December 31, 2011.  All capital ratios exceed regulatory minimums.

About Community Bankers Trust Corporation

The Company is the holding company for Essex Bank, a Virginia state bank with 24 full-service offices, 13 of which are in Virginia, seven of which are in Maryland and four of which are in Georgia. Additional information is available on the Company's website at www.cbtrustcorp.com.

Earnings Conference Call and Webcast

The Company will host a conference call for the financial community on Friday, April 27, 2012 at 11:00 a.m. Eastern Time to discuss the first quarter 2012 financial results. The public is invited to listen to this conference call by dialing 800-860-2442 at least 10 minutes prior to the call.  Interested parties may also listen to this conference call through the internet by accessing the "Investor Information" page of the Company's internet site at www.cbtrustcorp.com.

A replay of the conference call will be available from 2:00 p.m. Eastern Time on April 27, 2012 until 9:00 a.m. Eastern Time on May 7, 2012. The replay will be available by dialing 877-344-7529 and entering access code 10013266 or through the internet by accessing the "Investor Information" page of the Company's internet site 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 ability of the Company to comply with regulatory actions, and the costs associated with doing so; 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 Company's compliance with, and the timing of future reimbursements from the FDIC to the Company under, the shared loss agreements; assumptions and estimates that underlie the accounting for loan pools under the shared loss agreements; consumer profiles and spending and savings habits; the securities and credit markets; costs associated with the integration of banking and other internal operations; management's evaluation of goodwill and other assets on a periodic basis, and any resulting impairment charges, under applicable accounting standards; 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, 2011 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.

 





Consolidated Statements of Financial Condition




Unaudited (Dollars in thousands)









March 31, 2012

December 31, 2011

March 31, 2011





Assets




Cash and due from banks

$ 14,784

$ 11,078

$ 18,147

Interest bearing bank deposits

18,500

10,673

13,600

Federal funds sold

2,500

-

5,000

Total cash and cash equivalents

35,784

21,751

36,747





Securities available for sale, at fair value

235,311

232,764

213,347

Securities held to maturity

59,117

64,422

77,793

Equity securities, restricted, at cost

6,939

6,872

7,119

Total securities

301,367

304,058

298,259





Loans held for resale

349

580

-





Loans

548,789

544,718

514,276

Covered FDIC loans

94,695

97,561

108,329

Allowance for loan losses (non-covered)

(13,935)

(14,835)

(21,542)

Allowance for loan losses (covered)

(460)

(776)

(829)

Net loans

629,089

626,668

600,234





Bank premises and equipment

34,754

35,084

35,206

Other real estate owned

12,696

10,252

7,332

Covered FDIC other real estate owned

3,974

5,764

9,116

Covered FDIC receivable

1,402

1,780

1,398

Bank owned life insurance

14,730

14,592

6,895

Core deposit intangibles, net

11,992

12,558

14,254

FDIC indemnification asset

40,232

42,641

55,535

Other assets

16,309

16,768

20,517

Total assets

$ 1,102,678

$ 1,092,496

$ 1,085,493





Liabilities




Deposits:




Demand:




Noninterest bearing

77,055

64,953

64,128

Interest bearing

867,002

868,538

865,413

Total deposits

944,057

933,491

929,541





Federal Home Loan Bank advances

37,000

37,000

37,000

Trust preferred capital notes

4,124

4,124

4,124

Other liabilities

6,075

6,701

8,968

Total liabilities

991,256

981,316

979,633





Stockholders' Equity




Preferred stock (5,000,000 shares authorized $0.01
par value) 17,680 shares issued and outstanding

17,680

17,680

17,680

Discount on preferred stock

(399)

(454)

(609)

Warrants on preferred stock

1,037

1,037

1,037

Common stock (50,000,000 shares authorized $0.01
par value) issued and outstanding of 21,627,549
shares, 21,468,455 shares, and 21,468,455 shares,
respectively

216

216

215

Additional paid in capital

144,259

144,243

143,999

Accumulated deficit

(52,828)

(53,761)

(56,244)

Dividends paid on preferred stock

(221)

-

-

Accumulated other comprehensive income (loss)

1,678

2,219

(218)

Total stockholders' equity

111,422

111,180

105,860

Total liabilities and stockholders' equity

$ 1,102,678

$ 1,092,496

$ 1,085,493

 

Income Statement Trend Analysis




Unaudited (Dollars in thousands)













Three months ended



Three months ended




March 31,


YTD

December 31,

September 30,

June 30,

March 31,




2012


2011

2011

2011

2011

2011


Interest and dividend income










Interest and fees on loans


$  7,687


$  29,272

$  7,396

$  7,314

$  7,328

$  7,234


Interest and fees on FDIC covered 










   loans


3,914


17,576

4,251

4,667

4,838

3,820


Interest on federal funds sold


1


6

1

1

2

2


Interest on deposits in other banks


12


65

13

28

10

14


Investments (taxable)


2,077


8,091

2,036

2,058

2,085

1,912


Investments (nontaxable)


118


1,025

180

204

229

412


Total interest income


13,809


56,035

13,877

14,272

14,492

13,394


Interest expense










Interest on deposits


2,353


10,815

2,504

2,621

2,711

2,979


Interest on federal funds purchased


-


1

-

-

1

-


Interest on other borrowed funds


359


1,412

360

353

367

332


Total interest expense


2,712


12,228

2,864

2,974

3,079

3,311












Net interest income


11,097


43,807

11,013

11,298

11,413

10,083












Provision for loan losses


250


1,498

-

-

-

1,498


Net interest income after provision for loan losses


10,847


42,309

11,013

11,298

11,413

8,585


Noninterest income










Loss on sale of OREO


(177)


(2,869)

(337)

(1,671)

(249)

(612)


FDIC indemnification asset










   amortization


(1,882)


(10,364)

(2,603)

(2,359)

(2,657)

(2,745)


Gains/(loss) on sale of securities


(116)


2,868

306

1,725

176

661


Service charges on deposit accounts


617


2,503

647

643

637

576


Other


501


2,911

535

1,000

662

714


Total noninterest income


(1,057)


(4,951)

(1,452)

(662)

(1,431)

(1,406)


Noninterest expense










Salaries and employee benefits


4,238


16,603

4,178

4,050

4,171

4,204


Occupancy expenses


631


2,894

660

687

733

814


Equipment expenses


295


1,237

298

289

320

330


Legal fees


24


444

63

241

35

105


Professional fees


85


583

126

68

198

191


FDIC assessment


584


2,788

575

580

761

872


Data processing fees


517


1,864

459

478

476

452


Amortization of intangibles


565


2,261

565

565

565

565


Other operating expenses


1,471


7,180

1,703

1,724

2,075

1,678


Total noninterest expense


8,410


35,854

8,627

8,682

9,334

9,211












Net income/(loss) before income










   tax


1,380


1,504

934

1,954

648

(2,032)


Income tax (expense) benefit


(390)


(60)

(239)

(532)

(127)

838












Net income/(loss)


$990


$1,444

$695

$1,422

$521

$(1,194)


  Dividends paid on preferred stock


221


-

-

-

-

-


  Accretion of discount on preferred  










     stock


55


206

51

51

53

51


  Preferred dividends not paid


-


884

221

221

221

221


Net income/(loss) available to
    common stockholders


$714


$354

$423

$1,150

$247

$(1,466)


 

Net Interest Margin Analysis




Average Balance Sheet




(Dollars in thousands)


















Quarter ended March 31, 2012


Quarter ended December 31, 2011

Quarter ended March 31, 2011









Average



Average







Average






Average

Interest

Rates


Average

Interest

Rates


Average

Interest

Rates






Balance

Income/

Earned/


Balance

Income/

Earned/


Balance

Income/

Earned/






Sheet

Expense

Paid


Sheet

Expense

Paid


Sheet

Expense

Paid

      ASSETS:













Loans, including fees


$549,019

$7,687

5.60%


$521,194

$7,396

5.68%


$517,805

$7,234

5.59%


Loans covered by FDIC loss share

95,546

3,914

16.39%


98,283

4,251

17.30%


112,463

3,820

13.59%



Total loans



644,565

11,601

7.20%


619,477

11,647

7.52%


630,268

11,054

7.02%


Interest bearing bank balances


16,565

12

0.28%


26,961

13

0.20%


14,681

14

0.39%


Federal funds sold


2,967

1

0.10%


1,739

1

0.10%


4,611

2

0.19%


Investments (taxable)


282,510

2,077

2.94%


280,771

2,036

2.90%


257,244

1,912

2.97%


Investments (tax exempt) (1)


12,314

179

5.81%


18,803

271

5.76%


43,874

624

5.69%



Total earning assets


958,921

13,870

5.79%


947,751

13,968

5.90%


950,678

13,606

5.73%


Allowance for loan losses


(15,711)




(15,983)




(24,918)




Non-earning assets


150,278




151,277




169,080





Total assets



$1,093,488




$1,083,045




$1,094,840



















     LIABILITIES AND














STOCKHOLDERS' EQUITY














Demand - interest bearing


$235,663

$ 244

0.41%


$235,291

$284

0.48%


$232,483

$ 346

0.60%


Savings



71,148

72

0.41%


69,480

82

0.47%


64,958

85

0.52%


Time deposits



559,709

2,037

1.46%


554,713

2,138

1.54%


580,509

2,548

1.76%



Total deposits


866,520

2,353

1.09%


859,484

2,504

1.17%


877,950

2,979

1.36%


Fed funds purchased


185

0

0.61%


2

0

0.71%


140

1

0.61%


FHLB and other borrowings


41,124

359

3.50%


41,124

360

3.51%


41,124

331

3.22%



Total interest-bearing liabilities

907,829

2,712

1.20%


900,610

2,864

1.27%


919,214

3,311

1.44%


Non-interest bearing deposits


69,036




66,111




62,459




Other liabilities



4,868




5,434




5,548





Total liabilities


981,733




972,155




987,221




Stockholders' equity


111,755




110,890




107,619





Total liabilities and















stockholders' equity


$1,093,488




$1,083,045




$1,094,840




Net interest earnings



$ 11,158




$11,104




$10,295



Interest spread





4.59%




4.63%




4.29%


Net interest margin




4.65%




4.69%




4.33%
























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

Non-GAAP Financial Measures

The information below presents certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). Common tangible book value equals total stockholders' equity less preferred stock, goodwill and identifiable intangible assets, and common tangible book value per share is computed by dividing common tangible book value by the number of common shares outstanding. Common tangible assets equal total assets less preferred stock, goodwill and identifiable intangible assets.

Management believes that common tangible book value and the ratio of common tangible book value to common tangible assets are meaningful because they are some of the measures that the Company and investors use to assess capital adequacy. Management believes that presenting the change in common tangible book value per share, the change in stock price to common tangible book value per share, and the change in the ratio of common tangible book value to common tangible assets provide meaningful period-to-period comparisons of these measures.

These measures are a supplement to GAAP used to prepare the Company's financial statements and should not be viewed as a substitute for GAAP measures. In addition, the Company's non-GAAP measures may not be comparable to non-GAAP measures of other companies. The following table reconciles these non-GAAP measures from their respective GAAP basis measures.


March 31, 2012  

December 31, 2011  

March 31, 2011  


Common Tangible Book Value





Total stockholder's equity

111,422,000

111,180,000

105,860,000


Preferred stock (net)

18,318,000

18,263,000

18,108,000


Core deposit intangible

11,992,000

12,558,000

14,254,000


Common tangible book value

81,112,000

80,359,000

73,499,000


Shares outstanding

21,627,549

21,627,549

21,468,455


Common tangible book value per share

$                         3.75

$                         3.72

$                         3.42












Stock price

$                         2.14

$                         1.15

$                         1.16







Price/common tangible book

57.1%

30.9%

33.9%







Common tangible book/common tangible assets




Total assets

$        1,102,678,000

$        1,092,496,000

1,085,493,000


Preferred stock (net)

18,318,000

18,263,000

18,108,000


Goodwill

-

-

-


Core deposit intangible

11,992,000

12,558,000

14,254,000


Common tangible assets

1,072,368,000

1,061,675,000

1,053,132,000


Common tangible book

$              81,112,000

$              80,359,000

$             73,499,000


Common tangible equity to assets

7.56%

7.57%

6.98%


 

SOURCE Community Bankers Trust Corporation



RELATED LINKS
http://www.cbtrustcorp.com

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