CCB Bankshares, Inc. Reports Steady Performance for First Quarter 2017
SOUTH HILL, Va., April 26, 2017 /PRNewswire/ -- CCB Bankshares, Inc. (OTCQB: CZYB) today announced its unaudited results of operations for the first quarter of 2017.
Earnings
CCB Bankshares, Inc. is pleased to report net earnings of $246,116 to common shareholders for the first quarter of 2017. Earnings per share on a basic and dilutive basis were $0.16 and return on average assets was 0.47%. For the first quarter of 2016, the Company reported net income of $269,576 after preferred stock dividends of $9,000 or $0.18 per share on a basic and diluted basis.
Regarding performance for the first quarter, James R. Black, President and CEO, said, "We continued to see healthy growth in all markets and are capturing greater market share. Our earnings performance dipped slightly compared to the first quarter of 2016 as we furthered our investment in staff and infrastructure. The loan pipeline remains solid and asset quality is sound. We expect a modest year in growth and earnings as we leverage the recent investments in branches and staff. The CCB team is executing well and further efficiencies and value creation continues."
Net interest income for the first quarter of 2017 was $1,795,712, compared to $1,650,185 for the first quarter of 2016. The increase of $145 thousand or 8.8% includes the effect of a full quarter of interest expense on subordinated debt issued by the Company in February 2016 compared to a partial charge in the first quarter of 2016. The net interest margin for the first quarter of 2017 was 3.63% compared to 3.87% for the same period of 2016. The yield on earning assets was 4.35% for the first quarter of 2017, compared to 4.44% for the first quarter of 2016, with the decrease attributed primarily to more conservative yields earned on short, liquid investments. As a result of increasing cost of funds in new markets, the cost of funds for the first quarter of 2017 was 0.92%, a 16 basis point increase over the first quarter of 2016. The weighted cost of funds for the first quarter of 2017 was 0.63%, compared to 0.54% for the first quarter of 2016.
Noninterest income totaled $213,832 for the first quarter of 2017, an increase of $15,667 of 7.9% from the first quarter of 2016, at $198,165. Service charge and related fee income at March 31, 2017 increased by $17 thousand or 14.8% over March 31, 2016, primarily as a result of interchange and other fees related to electronic transactions. First quarter fee income for placement of mortgages in the secondary market was $10,849, compared to $12,723 for the first quarter of 2016. Noninterest expense for the first quarter of 2017 was $1,623,412, an increase of $174 thousand or 12.0% over the first quarter of 2016. Salary expense increased by $127 thousand or 18.0% as a result of addition of a full-service branch in Louisburg, NC and the addition of positions to further strengthen the infrastructure, particularly to manage increased loan volume. Data processing expenses increased by $22 thousand, reflecting the cost of enhancements in product offerings and network and communications facilities. There were no valuation write downs to other real estate owned during the first quarter of 2017 or 2016. During the first quarter of 2017, the Company took $35 thousand in provision expense to manage the impact of loan growth; there was no provision expense in the first quarter of 2016.
Growth
At March 31, 2017, total assets were $216.1 million, up $29.8 million, or 16.0% from March 31, 2016. Net loans at March 31, 2017 were $175.6 million, an increase of $23.0 million or 15.0% from March 31, 2016. Net loan growth for the first quarter of 2017 was $2.9 million or 1.7%. Loan demand throughout the markets continues to be modest. The Company remains committed to profitable growth without compromise of asset quality, liquidity, or interest rate risk. Deposits totaled $187.8 million, an increase of $30.9 million or 19.7% over March 31, 2016 and $4.3 million or 2.3% over December 31, 2016.
Asset Quality
The allowance for loan losses at March 31, 2017 was $2.2 million or 1.23% of total loans, compared to $2.0 million at March 31, 2016 and $2.2 million at December 31, 2016. Net charge offs at March 31, 2017 were $4 thousand, compared to net recoveries of $97 thousand at March 31, 2016. Nonperforming loans, which exclude performing troubled debt restructurings, equaled $1.0 million or 0.56% at March 31, 2017 compared to $486 thousand or 0.28% at March 31, 2016. The increase was temporary due to the anticipated payoff and refinance of several loans which occurred after the end of the quarter; therefore, levels have returned closer to those of 2016. There are no loans which are delinquent over 90 days and still accruing interest at March 31, 2017. As always, appropriate risk management through maintenance of high asset quality standards and an adequate reserve for loan losses continue to be priorities for the Company.
Other real estate owned totaled $348 thousand at March 31, 2017, compared to $357 thousand at March 31, 2016. Nonperforming assets, which excludes performing troubled debt restructurings, equaled $1.4 million or 0.63% at March 31, 2017 compared to $649 thousand or 0.35% at March 31, 2016.
Capital
The Company is under $1 billion in assets; therefore, capital ratios of the Bank are presented. As of March 31, 2017, total risk-based capital was 14.3% compared to 14.4% one year ago, and significantly higher than the 10.0% minimum regulatory requirement for well capitalized institutions. Tier 1 leverage was 10.3% at March 31, 2017, compared to 10.6% at March 31, 2016. During the first quarter of 2016, the Company repaid the remaining $1 million of SBLF preferred stock it had held with a $3.5 million subordinated debt offering. The subordinated debt has a 10-year maturity with a fixed rate of 7.0%. During the course of 2016, the Company injected $2.6 million of Tier I capital into the Bank.
CCB Bankshares, Inc. is a Virginia state chartered bank holding company headquartered in South Hill, Virginia and parent company to Citizens Community Bank. It operates six branches, three in south central Virginia and three in northern North Carolina, as well as a loan production office in Clarksville, VA. 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 Bank and other factors it believes are appropriate in the circumstances and at the time at which such statements are made. The Bank's actual results, events and developments may differ materially from those contemplated by any forward-looking statement. The Bank has no responsibility to update such forward-looking statements.
| CCB Bankshares, Inc. |
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| Consolidated Financial Highlights |
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| (Actual dollars, except per share data) |
March 31 |
March 31 |
December 31 |
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| Balance Sheet Data: |
2017 |
2016 |
2016 |
|||
| Total assets |
$ 216,088,901 |
$ 186,332,403 |
$ 211,604,170 |
|||
| Loans, net of ALLR |
175,593,619 |
152,618,197 |
172,719,436 |
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| Deposits |
187,835,080 |
156,941,806 |
183,557,552 |
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| Borrowings |
5,000,000 |
7,000,000 |
5,000,000 |
|||
| Subordinated debt, net of issuance costs |
3,446,344 |
3,470,546 |
3,470,148 |
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| Stockholders' equity |
19,154,963 |
18,658,068 |
18,856,801 |
|||
| Book value per share (1) |
$ 12.64 |
$ 12.34 |
$ 12.46 |
|||
| Total shares outstanding |
1,515,053 |
1,512,016 |
1,512,816 |
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| Three months ended March 31 |
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| Performance Ratios: |
2017 |
2016 |
||||
| Return on average assets |
0.47% |
0.59% |
||||
| Return on average common equity |
5.24% |
5.66% |
||||
| Net interest margin |
3.63% |
3.87% |
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| Overhead efficiency |
80.87% |
78.41% |
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| March 31 |
March 31 |
December 31 |
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| Asset Quality Data: |
2017 |
2016 |
2016 |
|||
| Allowance for loan loss |
$ 2,188,718 |
$ 2,000,850 |
$ 2,157,873 |
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| Nonperforming loans |
$ 1,002,842 |
$ 431,885 |
$ 485,532 |
|||
| Other real estate owned/repossessed assets |
$ 347,872 |
$ 216,950 |
$ 356,872 |
|||
| Nonperforming assets |
$ 1,350,714 |
$ 648,835 |
$ 842,404 |
|||
| Performing troubled debt restructurings |
$ 458,777 |
$ 485,818 |
$ 463,247 |
|||
| Net charge offs (recoveries) |
$ 4,155 |
$ (97,166) |
$ 235,812 |
|||
| Classified loans |
$ 4,509,083 |
$ 2,687,801 |
$ 3,135,765 |
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| Total Classified Assets |
$ 4,856,955 |
$ 2,904,751 |
$ 3,492,637 |
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| March 31 |
March 31 |
December 31, |
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| Asset Quality Ratios: |
2017 |
2016 |
2016 |
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| Allowance for loan loss to total loans |
1.23% |
1.29% |
1.23% |
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| Nonperforming loans to total loans |
0.56% |
0.28% |
0.28% |
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| Nonperforming assets to total assets |
0.63% |
0.35% |
0.40% |
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| Net charge-offs (recoveries) to average loans |
0.00% |
(0.06%) |
0.15% |
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| Capital Ratios: |
||||||
| Total capital ratio |
14.31% |
14.36% |
14.20% |
|||
| Tier 1 capital ratio |
13.06% |
13.11% |
12.95% |
|||
| Common equity tier 1 ratio |
13.06% |
13.11% |
12.95% |
|||
| Tier 1 leverage ratio |
10.30% |
10.60% |
10.15% |
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| Note (1) Reflects issuance of restricted stock awards in 2016. |
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| CCB Bankshares, Inc. - March 31, 2017 - Consolidated Statements of Income |
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| (Unaudited) |
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| (Actual dollars, except per share data) |
Three Months Ended March 31 |
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| Selected Operating Data: |
2017 |
2016 |
|
| Net interest income |
$ 1,795,712 |
$ 1,650,185 |
|
| Provision for loan losses |
35,000 |
- |
|
| Noninterest income |
213,832 |
198,165 |
|
| Noninterest expense |
1,623,412 |
1,449,209 |
|
| Income (loss) before income tax |
351,132 |
399,141 |
|
| Income tax expense (benefit) |
105,016 |
120,565 |
|
| Net income (loss) |
$ 246,116 |
$ 278,576 |
|
| Less: Preferred dividends |
$ - |
$ 9,000 |
|
| Net income (loss) available to common |
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| shareholders |
$ 246,116 |
$ 269,576 |
|
| Income (loss) per share available to |
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| common shareholders:(1) |
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| Basic |
$0.16 |
$0.18 |
|
| Diluted |
$0.16 |
$0.18 |
|
| Average shares outstanding, basic |
1,513,910 |
1,510,969 |
|
| Average shares outstanding, diluted |
1,513,910 |
1,510,969 |
|
| Note: (1) Share amounts revised to show restricted stock grants awarded in 2016. |
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SOURCE CCB Bankshares, Inc.
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