CCB Bankshares, Inc. is pleased to announce net income to common shareholders of $204,013 for the third quarter of 2016

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Nov 10, 2016, 11:41 ET

SOUTH HILL, Va., Nov. 10, 2016 /PRNewswire/ -- CCB Bankshares, Inc. (OTCQB: CZYB) today announced its unaudited results of operations for the third quarter of 2016.

Earnings

CCB Bankshares, Inc. is pleased to announce net income to common shareholders of $204,013 for the third quarter of 2016 compared to $179,054 after preferred stock dividends of $2,500 for the third quarter of 2015. On a basic and diluted basis, this was equivalent to $0.13 per share compared to $0.12 per share for the third quarter of 2015. Year to date, net income after preferred stock dividends was $573,774, compared to $559,824 for the same period of 2015. Before taxes and provisions for loan losses, net income stood at $1,151,598 at September 30, 2016, an increase of $119,013 or 11.5% over the same period of 2015.

President and CEO James R. Black, commented: "We experienced another quarter of solid growth and continued to build relationships throughout our markets. We are organically building a franchise with solid customer relationships, which is rewarding and valuable as a community bank. Our loan pipeline and overall momentum remains strong as we head into the fourth quarter of 2016 and prepare for 2017."

In comparing the third quarter of 2016 to the same quarter in 2015, net interest income increased by $164,117 or 10.5%. The net interest margin for the third quarter of 2016 was 3.60%, compared to 3.81% for the third quarter of 2015; margin results for 2016 reflect the impact of interest expense on subordinated debt. The weighted yield on earning assets was 4.31% for the third quarter of 2016 compared to 4.37% for the same period of 2015. The weighted cost of funds for the third quarter of 2016 was 0.74% compared to 0.71% for the same period of 2015.

Noninterest income totaled $204,673 for the third quarter of 2016 compared to $202,075 for the same period in 2015. Noninterest income for the first nine months of 2016 was $606,383, compared to $597,323 for the same period of 2015. Noninterest expense for the third quarter of 2016 was $1,523,825 compared to $1,396,113 for the third quarter of 2015. Noninterest expense year-to-date is $4,468,391 compared to $4,046,576 at September 30, 2015, an increase of 421,815 or 10.4%.

Growth

At September 30, 2016, total assets were $207.1 million, up $26.9 million or 14.9% from December 31, 2015. Gross loans were $171.1 million, an increase of $20.0 million or 13.3% from December 31, 2015, and $26.5 million or 18.3% from September 30, 2015. Deposits totaled $179.3 million, an increase of $25.7 million or 16.8% from December 31, 2015. The company has experienced growth across its entire footprint, but particularly in the emerging markets in North Carolina.

Asset Quality

At September 30, 2016, the allowance for loan losses was $2.2 million or 1.30% of loans. Nonperforming loans at September 30, 2016 were $669 thousand, compared to $516 thousand at December 31, 2015 and $983 thousand at September 30, 2015. Provision expense at September 30, 2016 was $340 thousand compared to $210 thousand at September 30, 2015.

At September 30, 2016, other real estate owned totaled $154 thousand compared with $217 thousand at year end 2015 and $387 thousand at September 30, 2015. In aggregate, nonperforming assets equaled $823 thousand or 0.4% of total assets at September 30, 2016, compared to $1.4 million or 0.8% of total assets at September 30, 2015.

Capital

As of September 30, 2016, the Bank's total risk-based capital was 13.5% and Tier 1 leverage was 9.9%. In February 2016, the Company repaid the remaining $1 million of the preferred stock issued in connection with the Treasury's Small Business Lending Fund which resulted in a reduction in the capital ratios. In addition, in February 2016 the company issued $3.5 million in subordinated debt, fixed at 7.0% for 10 years.

CCB Bankshares, Inc. is a holding company organized under the laws of the Commonwealth of Virginia with Citizens Community Bank, a Virginia state chartered bank headquartered in South Hill, Virginia, its primary asset. The Bank opened in December 1999, it operates six branches, three in south central Virginia and three in northern North Carolina. For more information and additional financial data, please visit www.myccb.bank.

This press release contains "forward-looking statements" that concern future events which are subject to risks and uncertainties. Any such statements are based on certain assumptions and analyses by the Company and other factors it believes are appropriate in the circumstances and at the time at which such statements are made. The Company's actual results, events and developments may differ materially from those contemplated by any forward-looking statement. The Company has no responsibility to update such forward-looking statements.

CCB Bankshares, Inc. - September 30, 2016 - Consolidated Statements of Income


(Unaudited)
(Actual dollars, except per share data)	Three Months Ended September 30		Nine Months Ended September 30
Selected Operating Data:	2016	2015	2016	2015

Net interest income	$ 1,725,823	$ 1,561,707	$ 5,016,606	$ 4,481,838
Provision for loan losses	150,000	110,000	340,000	210,000
Noninterest income	204,673	202,075	603,383	597,323
Noninterest expense	1,523,825	1,396,113	4,468,391	4,046,576
Income (loss) before income tax	256,672	257,669	811,598	822,585
Income tax expense (benefit)	52,659	76,114	228,824	240,928
Net income (loss)	$ 204,013	$ 181,554	$ 582,774	$ 581,658
Less: Preferred dividends	$ -	$ 2,500	$ 9,000	$ 21,833
Net income (loss) available to common
shareholders	$ 204,013	$ 179,054	$ 573,774	$ 559,824

Income (loss) per share available to
common shareholders:(1)
Basic	$0.13	$0.12	$0.38	$0.37
Diluted	$0.13	$0.12	$0.38	$0.37

Average shares outstanding, basic	1,511,968	1,509,945	1,511,652	1,509,625
Average shares outstanding, diluted	1,511,968	1,509,945	1,511,652	1,509,625

(1) results for 2016 are reflective of formation of holding company.
(2) share amounts revised to show restricted stock grants awarded in 2013 and 2014.

CCB Bankshares, Inc.
Consolidated Financial Highlights


(Actual dollars, except per share data)	September 30		September 30		December 31
Balance Sheet Data:	2016		2015		2015

Total assets	$	207,142,137	$	174,295145	$	180,218211
Loans, net of ALLR	168,855,705		142,412,832		149,124,611
Deposits	179,275,026		151,591,179		153,508,179
Borrowings	5,000,000		3,000,000		7,000,000
Preferred stock	-		1,000,000		1,000,000
Stockholders' equity	18,969,652		19,310,083		19,289,589
Book value per share (1) (2)	$	12.55	$	12.13	$	12.12
Total shares outstanding (3)	1,511,738		1,509,945		1,509,045

	Three months ended September 30				Nine months ended September 30
Performance Ratios:	2016		2015		2016		2015
Return on average assets	0.40%		0.41%		0.30%		0.43%
Return on average common equity	4.28%		3.69%		4.02%		3.56%
Net interest margin	3.60%		3.81%		3.72%		3.73%
Overhead efficiency	78.93%		78.81%		79.42%		79.54%


	September 30		September 30		December 31
Asset Quality Data:	2016		2015		2015
Allowance for loan loss	$	2,220,608	$	2,169,886	$	1,903,685
Nonperforming loans (4)	$	668,910	$	983,040	$	515,952
Other real estate owned/repossessed assets	$	154,450	$	387,209	$	216,950
Nonperforming assets (4)	$	823,360	$	1,370,249	$	732,902
Performing troubled debt restructurings	$	478,769	$	567,202	$	489,441
Net charge offs (recoveries)	$	23,077	$	(14,504)	$	451,697
Classified loans	$	2,862,872	$	3,863,928	$	2,979,552
Total Classified Assets	$	3,017,322	$	4,251,137	$	3,196,502


	September 30		September 30		December 31
Asset Quality Ratios:	2016		2015		2015
Allowance for loan loss to total loans	1.30%		1.50%		1.26%
Nonperforming loans to total loans	0.39%		0.68%		0.34%
Nonperforming assets to total assets	0.40%		0.79%		0.40%
Net charge-offs (recoveries) to average loans	0.01%		(0.01%)		0.32%

Capital Ratios(5):
Total capital ratio	13.53%		15.17%		14.57%
Tier 1 capital ratio	12.27%		13.92%		13.32%
Common equity tier 1 ratio	12.27%		13.33%		13.18%
Tier 1 leverage ratio	9.86%		10.91%		10.68%

Note: (1) Results of September 30, 2016 and December 31, 2015 are reflective of formation of holding company.
(2) Book value excludes $1 million of preferred stock at September 30, 2015 and December 31, 2015.
(3) Shares outstanding reflect issuance of restricted stock awards.
(4) Excludes performing troubled debt restructurings of $478,769 and $567,202 for September 30, 2016 and 2015, respectively.
(5) Capital ratios are bank only.