Community Bankers Trust Corporation Reports Results for Third Quarter 2015

- Termination of FDIC shared-loss agreements during quarter will improve profitability beginning in the fourth quarter of 2015.

- As part of the termination of the shared-loss agreements during the quarter, the FDIC paid $3.1 million in cash to the Bank, and the remaining $13.1 million FDIC indemnification asset related to the agreement was charged off.

- This transaction will eliminate future indemnification asset amortization expense, which totaled $5.2 million for the 12-month period from July 1, 2014 through June 30, 2015.

- Loans, excluding purchased credit impaired (PCI) loans, have grown by $33.0 million, or 5.0%, during 2015 and $53.7 million, or 8.4%, year-over-year.

- Noninterest bearing deposits have grown $15.0 million in 2015, or 17.7%.

- Nonperforming assets, excluding PCI loans, have declined $7.7 million, or 31.5%, in 2015.

Conference Call on Friday, October 30, 2015, at 10:00 a.m. Eastern Time

Oct 30, 2015, 08:00 ET from Community Bankers Trust Corporation

RICHMOND, Va., Oct. 30, 2015 /PRNewswire/ -- Community Bankers Trust Corporation (the "Company") (NASDAQ:  ESXB), the holding company for Essex Bank (the "Bank"), today reported unaudited results for the third quarter and first nine months of 2015.  Net loss available to common shareholders was $7.7 million, or $0.35 per common share, basic and fully diluted for the third quarter.  Excluding the one-time charge of $13.1 million related to the termination of the FDIC shared-loss agreements, net income for the quarter would have been $853,000. (See "Non-GAAP Financial Measures" at the end of this release for the calculation of net income without the effect of the one-time charge.)  In addition to the shared-loss termination, the Company had write-downs totaling $1.1 million with respect to two bank buildings and one parcel in other real estate owned in the third quarter of 2015.

Rex L. Smith, III, President and Chief Executive Officer of the Company and the Bank, stated: "We have been wanting to terminate the shared-loss agreements with the FDIC for some time, as the loans covered by these agreements have performed better than was originally projected.  Following the one-time payment by the FDIC of $3.1 million and absorbing the one-time charge from the write-off of the indemnification asset, we project that our net income will realize a pick-up of approximately $3.0 million in the next twelve months from the elimination of amortization.  In addition, we will still account for these loans under the same methodology of SOP-03, which resulted in a yield of 10.97% this quarter."

"Additionally, we wrote-down, by $684,000, the book value of two branch locations that are held-for-sale, giving us the flexibility to improve operating costs by selling them, and lowered our ongoing salaries and employee benefit costs beginning in the fourth quarter.  This is the result of the consolidation efforts we have already put in place over the previous year at our new headquarters, coupled with less expense associated with the management of the shared-loss agreements going forward."

RESULTS OF OPERATIONS

Net loss was $7.7 million for the third quarter of 2015, compared with net income of $1.7 million in the second quarter of 2015 and $1.8 million in the third quarter of 2014.  Earnings/(loss) per common share, basic and fully diluted, were  $(0.35) per share for the third quarter of 2015, compared with $0.08 per share in the second quarter of 2015 and $0.08 per share in the third quarter of 2014.

On a linked quarter basis, net income declined $9.4 million.  Excluding the one-time charges related to the termination of the FDIC shared-loss agreements, net income would have declined $840,000, or 49.6%.  The write-down of three bank properties, two in held-for-sale totaling $684,000 and one held in other real estate owned for $392,000, was the major factor in this decrease.  Additionally, salaries and employee benefits increased by $397,000 on a linked quarter basis, $161,000 of this increase the result of accrued salary and benefit payments related to position consolidations that will reduce this expense by approximately $600,000 annually, before tax.

Net loss was $4.7 million for the first nine months ended September 30, 2015 versus net income of $5.3 million and net income available to common shareholders of $5.0 million for the same period in 2014.  Excluding the aforementioned one-time FDIC-related charges, net income would have been $3.7 million for the first nine months of 2015.  The Company estimates that the elimination of the FDIC indemnification asset will result in a net income increase of approximately $3.0 million over the next 12 months.  Earnings/(loss) per common share, basic and fully diluted, were $(0.21) for the first nine months of 2015 versus $0.23 for the first nine months of 2014.

The following table presents summary income statements for the three and nine months ended September 30, 2015 and 2014, respectively.

SUMMARY INCOME STATEMENT









(Dollars in thousands)


For the three months ended


For the nine months ended



30-Sep-15


30-Sep-14


30-Sep-15


30-Sep-14

Interest income

$

11,723

$

12,665

$

35,706

$

36,999

Interest expense


1,878


1,783


5,613


5,050

Net interest income


9,845


10,882


30,093


31,949

Provision for loan losses


-


-


-


-

Net interest income after provision









for loan losses


9,845


10,882


30,093


31,949

Noninterest income


1,253


1,166


3,856


3,437

Noninterest expense


23,029


9,538


41,991


28,074

Net (loss) income before income taxes


(11,931)


2,510


(8,042)


7,312

Income tax (benefit) expense


(4,215)


697


(3,331)


2,055

Net (loss) income


(7,716)


1,813


(4,711)


5,257

Dividends on preferred stock


-


-


-


247

Net (loss) income available









to common shareholders

$

(7,716)

$

1,813

$

(4,711)

$

5,010










EPS Basic

$

(0.35)

$

0.08

$

(0.21)

$

0.23

EPS Diluted

$

(0.35)

$

0.08

$

(0.21)

$

0.23











Net Interest Income

Linked Quarter Basis
Net interest income was $9.8 million for the quarter ended September 30, 2015, compared with $10.5 million for the second quarter of 2015, representing a decrease of $618,000, or 5.9%.  The linked quarter decline was most evidenced in interest and fees on PCI loans, which declined $688,000.  In the second quarter of 2015, there were $475,000 in cash payments realized from acquisition development and construction (ADC) loans that had been previously written down to a zero carrying value realized.  Interest and fees on loans declined a modest $31,000 on a linked quarter basis, while securities income increased $115,000.   The increase in securities income was generated by higher average balances in investments of $22.8 million in the third quarter of 2015 compared with the previous quarter.

The yield on earning assets was 4.45% for the third quarter of 2015 compared with 4.78% in the second quarter of 2015.  The yield on loans, excluding PCI loans, declined from 4.77% in the second quarter of 2015 to 4.60% in the third quarter of 2015, while the yield on PCI loans declined from 15.07% in the second quarter to 10.97% in the third quarter.  The second quarter reflected the ADC cash payments noted above, which enhanced yield.  Securities yields have remained relatively stable and were 2.97% on a tax-equivalent basis for the third quarter of 2015.

Interest expense increased only $8,000, or 0.43%, on a linked quarter basis.  Average interest bearing liabilities increased only $3.8 million during the quarter, and the cost of total interest bearing liabilities declined from 0.80% in the second quarter of 2015 to 0.79% in the third quarter of 2015.  Federal Home Loan Bank (FHLB) and other borrowings declined $3.5 million during the third quarter of 2015 and averaged $91.9 million at a rate of 1.19%, down from 1.26% in the second quarter of 2015.

The interest spread declined from 3.98% in the second quarter of 2015 to 3.66% in the third quarter of 2015.  The 32 basis point decline in spread was due to a 33 basis point decline in the yield on earning assets, as outlined above, coupled with only a one basis point improvement in the cost of funds.  This resulted in a decline in the net interest margin, on a tax-equivalent basis, of 32 basis points, from 4.07% in the second quarter of 2015 to 3.75% in the third quarter of 2015.

Year-Over-Year Quarter
Net interest income declined $1.1 million from $10.9 million in the third quarter of 2014 to $9.8 million in the same period in 2015.  This decline was driven by a reduction in income recognized in PCI loans, which was $2.6 million for the three months ended September 30, 2014 and $1.7 million for the same period in 2015.  This reduction in PCI interest income of $916,000 was due to $221,000 in cash payments on zero carrying value ADC loans in the third quarter of 2014 versus no such payments for the same period in 2015.  Additionally, the average balance of PCI loans declined by $7.2 million in the year-over-year quarters, also causing lower PCI interest income.

The yield on earning assets declined from 4.97% for the third quarter of 2014 to 4.45% for the third quarter of 2015.  The most notable decline was in PCI loan yields, which fell from 15.05% in the third quarter of 2014 to 10.97% in the third quarter of 2015.  The yield on loans, excluding PCI loans, declined from 4.95% in the third quarter of 2014 to 4.60% in the third quarter of 2015.  Securities yields, on a tax-equivalent basis, increased from 2.94% in the third quarter of 2014 to 2.97% in the third quarter of 2015.

Interest expense, year-over-year, was $1.9 million in the third quarter of 2015 versus $1.8 million in the third quarter of 2014.  The cost of total interest bearing deposits increased only $19,000 year-over-year on an increase of $2.2 million in average balances.  The expense of FHLB and other borrowings increased $106,000 on an increase of $6.4 million in average balances.

The rate paid on total interest bearing liabilities increased slightly, from 0.75% in the third quarter of 2014 to 0.79% in the third quarter of 2015.  The increase was primarily the result of the Company locking in $30 million of five-year funding in the fourth quarter of 2014 through the use of a swap agreement, at a rate of 1.69%.  As a result of this transaction, the rate paid on FHLB and other borrowings increased from 0.79% in the third quarter of 2014 to 1.19% for the same period in 2015.

The combination of the items described above resulted in a decrease in the interest spread of 56 basis points, from 4.22% in the third quarter of 2014 to 3.66% in the third quarter of 2015.  The tax-equivalent net interest margin declined from 4.28% in the third quarter of 2014 to 3.75% for the same period in 2015.

Year-Over-Year Nine Months
Net interest income was $30.1 million for the nine months ended September 30, 2015 versus $31.9 million for the nine months ended September 30, 2014.  This decrease in net interest income was the result of lower interest income of $1.3 million coupled with higher interest expense of $563,000.  This is a decrease of $1.8 million, or 5.8%.  While the income on loans, excluding PCI loans, has increased $1.7 million from the first nine months of 2014 to the same period in 2015, the income derived from PCI loans has dropped by $2.8 million.  Cash payments on zero carrying value ADC loans were $825,000 greater during the 2014 nine month time frame when compared with the first nine months of 2015.  Interest income on securities declined 6.1%, or $373,000, during the same time frame.

The tax-equivalent yield on earning assets dropped 37 basis points, from 4.98% for the first nine months of 2014 to 4.61% for the first nine months of 2015.  The yield on total loans declined 70 basis points, from 6.09% in 2014 to 5.39% in 2015.  PCI loan yield fell from 17.02% to 12.83% and the yield on loans, excluding PCI loans declined 15 basis points, from 4.82% to 4.67%. The tax-equivalent yield on securities increased from 2.74% for the first nine months of 2014 to 2.93% for the same period in 2015. The average balance of tax-exempt securities increased $47.8 million over the time frame and is responsible for the increase in yield on the portfolio.

Interest expense increased $563,000, or 11.2%, from $5.1 million for the nine months ended September 30, 2014 to $5.6 million for the first nine months of 2015.  Interest on FHLB and other borrowings increased $405,000 during this time frame on average balance increases of $13.3 million, coupled with an increase in rate from 0.80% to 1.25%, as noted above, due to locking in five year funding in the fourth quarter of 2014.

The rate paid on total interest bearing liabilities increased from 0.74% for the first nine months of 2014 to 0.80% for the same period in 2015.  Again, the increase in FHLB and other borrowings was the main factor for this increase.

The combination of the decrease in yield on earning assets coupled with the slight increase in cost of interest bearing liabilities resulted in a decrease in the interest spread from 4.24% in the first nine months of 2014 to 3.81% for the same period in 2015.  As a result, the net interest margin declined from 4.30% for the first nine months of 2014 to 3.90% for the same period in 2015.

 

NET INTEREST MARGIN






(Dollars in thousands)


For the three months ended




30-Sep-15


30-Jun-15


30-Sep-14


Average interest earning assets

$

1,073,790

$

1,058,471

$

1,022,220


Interest income

$

11,723

$

12,333

$

12,665


Interest income - tax-equivalent

$

12,032

$

12,603

$

12,804


Yield on interest earning assets


4.45%


4.78%


4.97%


Average interest bearing liabilities

$

943,208

$

939,380

$

938,127


Interest expense

$

1,878

$

1,870

$

1,783


Cost of interest bearing liabilities


0.79%


0.80%


0.75%


Net interest income

$

9,845

$

10,463

$

10,882


Net interest income - tax-equivalent

$

10,154

$

10,733

$

11,021


Interest spread


3.66%


3.98%


4.22%


Net interest margin


3.75%


4.07%


4.28%











For the nine months ended






30-Sep-15


30-Sep-14




Average interest earning assets

$

1,058,376

$

1,002,210




Interest income

$

35,706

$

36,999




Interest income - tax-equivalent

$

36,514

$

37,305




Yield on interest earning assets


4.61%


4.98%




Average interest bearing liabilities

$

940,484

$

922,681




Interest expense

$

5,613

$

5,050




Cost of interest bearing liabilities


0.80%


0.74%




Net interest income

$

30,093

$

31,949




Net interest income - tax-equivalent

$

30,901

$

32,255




Interest spread


3.81%


4.24%




Net interest margin


3.90%


4.30%












Provision for Loan Losses

The Company has two categories of loans -- loans, excluding PCI, and PCI loans.  As a result, the Company records a separate provision for loan losses for its loan portfolio, excluding PCI loans, and for its PCI loan portfolio. There was no provision for loan losses on loans, excluding PCI loans, for the first nine months of 2014 or 2015.  Likewise, there was no provision for loan losses on the PCI portfolio during the same time frames.

Noninterest Income

Linked Quarter
Noninterest income was $1.3 million for the third quarter of 2015, compared with $1.2 million in the second quarter of 2015. The increase was $48,000, or 3.9%.  Gain on sales of securities was $74,000 for the third quarter of 2015, an increase of $82,000 from the $8,000 loss in the second quarter of 2015. Also increasing in the third quarter of 2015 over the second quarter of 2015 were service charges on deposit accounts, which increased $26,000 and were $583,000 for the period.  Mortgage loan fees were $230,000 in the third quarter of 2015, a decline of $32,000 from the second quarter of 2015. There was no gain on sale of loans during the third quarter of 2015 versus $23,000 in the second quarter.

Year-Over-Year Quarter
Noninterest income increased $87,000 and was $1.3 million in the third quarter of 2015 versus $1.2 million for the same period in 2014.  Mortgage loan fees increased $188,000 and were $230,000 in the third quarter of 2015 compared with $42,000 in the third quarter of 2014.  Other noninterest income also reflected a year-over-year increase and was $178,000 in the third quarter of 2015 versus $154,000 one year ago.  Declines year-over-year were in gain on sale of other loans, which were none for the current quarter versus $78,000 one year ago when the Company sold selected SBA loans at a gain.  Gain on sale of securities of $74,000 in the third quarter of 2015 was $41,000 less than the $115,000 realized one year ago.

Year-Over-Year Nine Months
Noninterest income was $3.9 million for the nine months ended September 30, 2015 versus $3.4 million for the nine months ended September 30, 2014.  This is an increase of $419,000, or 12.2%.  Mortgage loan income of $640,000 was a $525,000 increase for the nine months ended September 30, 2015 versus $115,000 for the first nine months of 2014.  The mortgage division began operations in the second quarter of 2014 and has progressively increased its production. Also increasing for the nine months ended September 30, 2015 over the nine months ended September 30, 2014 were other income, which increased 19.7%, to $554,000 and service charges on deposit accounts, which increased $34,000 and were $1.7 million for the period.  Offsetting these increases in noninterest income were a decrease in gain on sale of securities of $131,000, which were $363,000 for the nine months ended September 30, 2015, and a decrease in gain on sale of other loans of $84,000, which were $69,000 for the nine months ended September 30, 2015.

Noninterest Expenses

Linked Quarter
Noninterest expenses were $23.0 million for the quarter ended September 30, 2015, a linked quarter increase of $13.6 million. The increase was due to the $13.1 million expense in indemnification asset amortization as a result of the termination of the FDIC shared-loss agreements.  There will be no further indemnification asset amortization as a result of this termination, in which the Bank was paid $3.1 million by the FDIC.  Other real estate expenses increased $721,000 and were $858,000 in the third quarter of 2015 versus $137,000 in the second quarter of 2015. Management wrote down the value of two branch buildings that are held for sale by a total of $684,000 in the third quarter of 2015. Additionally, the Company further wrote down a piece of other real estate by $392,000 to reflect management's assessment of current market value.  Costs of other real estate expenses were partially offset by a gain of $320,000 on the sale of other real estate owned and rental income of $34,000.  Salaries and employee benefits increased $397,000, from $4.4 million in the second quarter of 2015 to $4.8 million in the third quarter of 2015.  Of this increase, $161,000 was related to severance payments as the Company right-sized its workforce to improve efficiencies.  Beginning in the fourth quarter of 2015, this is expected to result in approximately $157,000 per quarter in lower salaries and employee benefit costs.  Other operating expenses declined $210,000 on a linked quarter basis and were $1.6 million in the third quarter of 2015.

Year-Over-Year Quarter
Noninterest expenses were $23.0 million for the third quarter of 2015 versus $9.5 million for the third quarter of 2014. Again, the $13.5 million increase in noninterest expense in the year over year quarters was primarily the result of the termination of the FDIC shared-loss agreements, which resulted in the write-off of the remaining FDIC indemnification asset causing an increase in indemnification asset amortization of $12.4 million.  Also increasing in the third quarter of 2015 over the same period in 2014 was salaries and employee benefits, which increased $731,000, but beginning in the fourth quarter of 2015 will reflect savings noted previously. Other real estate expenses increased $466,000 year-over-year and were $858,000 in the third quarter of 2015 versus $392,000 in the third quarter of 2014, the result of the write downs in the third quarter of 2015 noted above.  Other operating expenses of $1.6 million were $158,000 lower in the third quarter of 2015 versus the third quarter of 2014.

Year-Over-Year Nine Months
Noninterest expenses were $42.0 million for the nine months ended September 30, 2015.  This compares with noninterest expenses of $28.1 million for the nine months ended September 30, 2014.  This is an increase of $13.9 million, of which indemnification asset amortization write-off was $11.8 million of the total.  The second largest increase was reflected in salaries and employee benefits, which increased $1.7 million, primarily through the addition of loan production employees, including the mortgage division in the second quarter of 2014.  Other real estate expenses of $1.1 million increased $305,000 for the nine months ended September 30, 2015 versus $775,000 for the nine months ended September 30, 2014.  Other operating expenses of $4.9 million for the nine months ended September 30, 2015 increased $117,000, or 2.4%, over the same period in 2014.

Income Taxes

Income tax reflected a benefit of $4.2 million in the third quarter of 2015 as a result of the loss reported for the quarter through the termination of the FDIC shared-loss agreements.  Income tax expense was $533,000 in the second quarter of 2015 and $697,000 in the third quarter of 2014.  Income tax reflects a benefit of $3.3 million for the nine months ended September 30, 2015 versus income tax expense of $2.1 million for the nine months ended September 30, 2014. The effective tax rate, as a result of an increase in non-taxable income in municipal securities, was a 41.4% benefit for the nine months ended September 30, 2015 and an effective tax rate of 28.1% for the nine months ended September 30, 2014.

 

FINANCIAL CONDITION

Total assets of $1.149 billion at September 30, 2015 were relatively unchanged, $6.5 million less than the $1.156 billion reported at December 31, 2014.  Total assets increased $20.4 million from September 30, 2014.  Total loans, excluding PCI loans, were $693.0 million at September 30, 2015, increasing $33.0 million, or 5.0% since year-end 2014. Residential 1-4 family mortgage loans increased $17.1 million, or 10.2%, over this time frame and were $184.3 million at September 30, 2015.  Multifamily loans increased $11.8 million, or 34.9%, and were $45.6 million at September 30, 2015. Commercial and land development loans of $64.1 million at September 30, 2015 reflect an increase of 10.3%, or $7.0 million since year end 2014. The largest component of the loan portfolio, commercial real estate loans, were $288.1 million at September 30, 2015, with an increase of $6.0 million during 2015.  PCI loans were $61.1 million at September 30, 2015, $6.4 million lower than at year-end 2014.

The following table shows the composition of the Company's loan portfolio, excluding PCI loans, net of deferred fees and costs, at September 30, 2015, June 30, 2015, December 31, 2014, and September 30, 2014.

LOANS (excluding PCI loans)













(Dollars in thousands)

30-Sep-15

30-Jun-15

31-Dec-14

30-Sep-14



Amount

% of Loans

Amount

% of Loans

Amount

% of Loans

Amount

% of Loans

Mortgage loans on real estate:














Residential 1-4 family

$

184,256

26.60%

$

177,413

26.09%

$

167,171

25.32%

$

161,442

25.25%


Commercial


288,111

41.57%


284,089

41.79%


282,127

42.75%


280,899

43.94%


Construction and land development


64,059

9.24%


57,008

8.39%


57,027

8.64%


50,841

7.95%


Second mortgages


7,940

1.15%


7,356

1.08%


5,997

0.91%


6,554

1.03%


Multifamily


45,609

6.58%


44,343

6.52%


33,812

5.12%


34,087

5.33%


Agriculture


6,335

0.91%


6,654

0.98%


7,163

1.09%


7,495

1.17%


Total real estate loans


596,310

86.05%


576,863

84.85%


553,297

83.83%


541,318

84.67%

Commercial loans


90,295

13.03%


96,510

14.20%


99,783

15.12%


90,820

14.21%

Consumer installment loans


5,005

0.72%


5,011

0.74%


5,496

0.83%


5,692

0.89%

All other loans


1,392

0.20%


1,396

0.21%


1,444

0.22%


1,495

0.23%


Gross loans


693,002

100.00%


679,780

100.00%


660,020

100.00%


639,325

100.00%

Allowance for loan losses


(9,701)



(9,864)



(9,267)



(9,764)


Non-covered loans, net of unearned













income

$

683,301


$

669,916


$

650,753


$

629,561

















Total securities of $314.3 million at September 30, 2015 reflected a decrease of $5.3 million from year-end 2014.  The fair value of securities available-for-sale was $267.0 million at September 30, 2015, and state, county and municipal bonds were 54.6% of this total, at $145.9 million. The book value of securities held-to-maturity was $38.7 million at September 30, 2015 with state, county and municipal bonds totaling $35.4 million.  Gains on the sale of securities of $74,000 were realized in the third quarter of 2015.

The Company had cash and cash equivalents of $12.4 million at September 30, 2015 versus $22.4 million at December 31, 2014.  During the third quarter of 2015, management implemented a system that will result in lower reserve requirements and increase the level of earning assets.

 

 

The following table shows the composition of the Company's securities portfolio, excluding equity securities, at September 30, 2015, June 30, 2015, December 31, 2014 and September 30, 2014.

SECURITIES PORTFOLIO















(Dollars in thousands)


30-Sep-15


30-Jun-15


31-Dec-14


30-Sep-14



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

$

57,668

$

57,027

$

62,479

$

61,786

$

99,608

$

98,707

$

82,019

$

80,931

U.S Government sponsored agencies


756


746


757


729


-


-


-


-

State, county and municipal


142,673


145,873


141,240


141,969


134,405


137,477


135,469


136,928

Corporate and other bonds


20,467


20,116


20,644


20,541


11,921


11,883


12,011


11,942

Mortgage backed securities - U.S. Government agencies


8,715


8,668


4,375


4,276


2,338


2,258


2,507


2,402

Mortgage backed securities - U.S. Government sponsored agencies


34,475


34,531


33,608


33,512


24,096


24,243


26,113


26,008


















Total securities available for sale

$

264,754

$

266,961

$

263,103

$

262,813

$

272,368

$

274,568

$

258,119

$

258,211




















30-Sep-15


30-Jun-15


31-Dec-14


30-Sep-14



Amortized Cost


Fair Value


Amortized Cost


Fair Value


Amortized Cost


Fair Value


Amortized Cost


Fair Value

Securities Held to Maturity

















State, county and municipal

$

35,370

$

36,237

$

34,877

$

35,038

$

31,677

$

32,780

$

32,040

$

32,855

Mortgage backed securities - U.S. Government agencies


3,362


3,536


3,588


3,781


4,293


4,531


5,186


5,478

Mortgage backed securities - U.S. Government sponsored agencies


-


-


-


-


227


228


9,250


9,729

Total securities held to maturity

$

38,732

$

39,773

$

38,465

$

38,819

$

36,197

$

37,539

$

46,476

$

48,062

Interest bearing deposits were $834.0 million at September 30, 2015, a slight decrease of $365,000 since year-end 2014. However, there has been a change in the composition of the deposit mix.  NOW accounts have declined $11.4 million during 2015 while MMDA and savings accounts have increased collectively in a greater amount, $16.9 million.  Time deposits less than or equal to $250,000 have declined $8.9 million during 2015 as management has not been aggressively pricing this deposit class.  Time deposits $250,000 and over have increased $3.0 million during 2015.

The following table compares the mix of interest bearing deposits at September 30, 2015, June 30, 2015, December 31, 2014 and September 30, 2014.

INTEREST BEARING DEPOSITS









(Dollars in thousands)











30-Sep-15


30-Jun-15


31-Dec-14


30-Sep-14

NOW

$

112,277

$

124,234

$

123,682

$

104,788

MMDA


109,748


110,577


101,784


97,718

Savings


87,368


86,114


78,478


77,664

Time deposits less than or equal to $250,000


407,765


414,015


416,628


435,397

Time deposits $250,000 and over


116,858


111,496


113,809


124,619

Total interest bearing deposits

$

834,016

$

846,436

$

834,381

$

840,186

FHLB advances were $95.8 million at September 30, 2015, $557,000 less that at year-end 2014. Long term debt was $6.5 million at September 30, 2015, declining $3.2 million since year-end 2014.  This debt, originally totaling $10.7 million, was obtained in April 2014, and the proceeds were used to redeem the Company's remaining outstanding TARP preferred stock.  The Company has repaid $4.2 million of this debt since it was obtained.

Shareholder's equity was $103.0 million at September 30, 2015.  This is a decrease of $4.7 million since December 31, 2014 when shareholder's equity was $107.7 million.  The primary reason for the decline was the termination of the FDIC shared-loss agreements and the resulting loss for the third quarter.  Management anticipates that the earn-back period on the elimination of the indemnification assets is approximately two years.

ASSET QUALITY – excluding PCI loans

Nonaccrual loans were $10.8 million at September 30, 2015, compared with $10.5 million at June 30, 2015 and $16.6 million at December 31, 2014.  The reduction of $5.8 million, or 34.9%, from year-end is primarily the result of a complete resolution and pay-out of a large commercial loan relationship placed on nonaccrual status in the fourth quarter of 2014.  Other measurements of asset quality show improvement since year-end as well.  Internally designated criticized and classified assets declined collectively from year-end by $14.3 million.  Criticized loans declined from $21.8 million at year-end to $18.0 million at September 30, 2015.  Classified loans declined $8.6 million during 2015, from $22.2 million at December 31, 2014 to $13.6 million at September 30, 2015.  Other real estate owned has declined from $7.7 million at December 31, 2014 to $5.9 million at September 30, 2015.

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

ASSET QUALITY







(Dollars in thousands)



30-Sep-15


30-Jun-15


31-Mar-15


31-Dec-14


30-Sep-14


Nonaccrual loans

$10,795


$10,530


$17,196


$16,571


$9,481













Criticized (special mention) loans

17,977


21,271


22,226


21,835


21,517


Classified (substandard) loans

13,610


12,306


22,024


22,181


25,053


Other real estate owned *

5,858


6,506


6,844


7,743


8,482


Total classified and criticized assets

$37,445


$40,083


$51,094


$51,759


$55,052


















*Other real estate owned has been restated for all dates presented to include other real estate owned previously covered by the FDIC shared-loss agreements.

Total nonperforming assets totaled $16.7 million at September 30, 2015, decreasing $383,000 during the quarter and $7.7 million since year-end.  The decrease in the level of nonperforming assets since year-end 2014 is due to the resolution and payoff of the large commercial loan relationship classified as nonaccrual at December 31, 2014.  Charged-off loans were $210,000 in the third quarter of 2015 while recoveries of previously charged-off loans totaled $47,000.  For the nine months ended September 30, 2015, loans charged-off totaled $1.1 million and recoveries of previously charged-off loans totaled $1.5 million.

The allowance for loan losses, excluding PCI loans, equaled 89.9% of nonaccrual loans at September 30, 2015, compared with 55.9% at December 31, 2014.  The ratio of allowance for loan losses to nonperforming assets was 61.2% at September 30, 2015, compared with 40.1% at December 31, 2014.  Nonperforming assets to loans and other real estate, excluding PCI loans, was 2.4% at September 30, 2015, compared with 3.6% at December 31, 2014.

The following table reconciles the activity of the Company's allowance for loan losses, excluding PCI loans, by quarter, for the past five quarters.  These numbers exclude the $484,000 in allowance for loan losses related to PCI loans.

ALLOWANCE FOR LOAN LOSSES












(Dollars in thousands)


2015


2014



Third


Second


First



Fourth


Third



Quarter


Quarter


Quarter



Quarter


Quarter

Allowance for loan losses:












Beginning of period

$

9,864

$

9,011

$

9,267


$

9,764

$

10,156

Provision for loan losses


-


-


-



-


-

Net recoveries (charge-offs)


(163)


853


(256)



(497)


(392)

End of period

$

9,701

$

9,864

$

9,011


$

9,267

$

9,764

The following table sets forth selected asset quality data, excluding PCI loans, and ratios for the dates indicated:

ASSET QUALITY (excluding PCI loans)












(Dollars in thousands)

2015


2014



30-Sep-15


30-Jun-15


31-Mar-15



31-Dec-14


30-Sep-14













Nonaccrual loans

$

10,795

$

10,530

$

17,196


$

16,571

$

9,481

Loans past due over 90 days and accruing interest


-


-


-



-


178

Total nonperforming loans


10,795


10,530


17,196



16,571


9,659

Other real estate owned


5,858


6,506


6,844



7,743


8,482

Total nonperforming assets

$

16,653

$

17,036

$

24,040


$

24,314

$

18,141













Allowance for loan losses, excluding PCI loans, to loans


1.40%


1.45%


1.33%



1.40%


1.55%

Allowances for loan losses to nonperforming assets


61.16%


60.74%


39.50%



40.10%


56.49%

Allowance for loan losses, excluding PCI loans, to nonaccrual loans


89.87%


93.68%


52.40%



55.92%


102.98%

Nonperforming assets to loans, excluding PCI loans, and other real estate


2.38%


2.48%


3.51%



3.64%


2.80%

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


0.09%


(0.50%)


0.15%



0.31%


0.25%

annualized












A further breakout of nonaccrual loans, excluding PCI loans, at September 30, 2015, December 31, 2014 and September 30, 2014 is below:

NONACCRUAL LOANS (excluding PCI loans)










(Dollars in thousands)


30-Sep-15


31-Dec-14


30-Sep-14




Amount

% of Loans


Amount

% of Loans


Amount

% of Loans

Mortgage loans on real estate:














Residential 1-4 family


$

4,664

0.68%


$

3,342

0.51%


$

3,748

0.59%


Commercial



1,524

0.22%



607

0.09%



624

0.10%


Construction and land development



4,511

0.65%



4,920

0.74%



4,950

0.77%


Second mortgages



13

0.00%



61

0.01%



61

0.01%


Total real estate loans



10,712

1.55%



8,930

1.35%



9,383

1.47%

Commercial loans


$

2

0.00%


$

7,521

1.14%


$

8

0.00%

Consumer installment loans



81

0.01%



120

0.02%



90

0.01%


Gross loans



10,795

1.56%



16,571

2.51%



9,481

1.48%

Capital Requirements

The Company's ratio of total risk-based capital was 13.5% at September 30, 2015, compared with 14.7% at December 31, 2014.  The tier 1 risk-based capital ratio was 12.4% at September 30, 2015 and 13.5% at December 31, 2014. The Company's tier 1 leverage ratio was 9.2% at September 30, 2015 and 9.4% at December 31, 2014.  All capital ratios exceed regulatory minimums to be considered well capitalized.

The September 30, 2015 ratios reflect changes to the capital and asset risk-weighting of BASEL III, which became effective January 1, 2015. BASEL III introduced the common equity tier 1 capital ratio, which was 11.9% at September 30, 2015.

Earnings Conference Call and Webcast

The Company will host a conference call for interested parties on October 30, 2015, at 10:00 a.m. Eastern Time to discuss the financial results for the third quarter and first nine months of 2015. The public is invited to listen to this conference call by dialing 866-374-8379 at least five minutes prior to the call.  Interested parties may also listen to this conference call through the internet by accessing the "Corporate Overview – Corporate Profile" page of the Company's internet site at www.cbtrustcorp.com.

A replay of the conference call will be available from 12:00 noon Eastern Time on October 30, 2015, until 9:00 a.m. Eastern Time on November 6, 2015. The replay will be available by dialing 877-344-7529 and entering access code 10074083 or through the internet by accessing the "Corporate Overview – Corporate Profile" page of the Company's internet site at 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 22 full-service offices, 15 of which are in Virginia and seven of which are in Maryland.  The Bank also operates two loan production offices in Virginia.

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, 2014 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 CONDENSED







(Dollars in thousands)








30-Sep-15

31-Dec-14

30-Sep-14

Assets







Cash and due from banks

$

10,032

$

8,329

$

8,335

Interest bearing bank deposits


2,405


14,024


10,160

Total cash and cash equivalents


12,437


22,353


18,495








Securities available for sale, at fair value


266,961


274,568


258,211

Securities held to maturity, at cost


38,732


36,197


46,476

Equity securities, restricted, at cost


8,610


8,816


8,149

Total securities


314,303


319,581


312,836








Loans held for resale


673


200


239








Loans


693,002


660,020


639,324

Purchased credit impaired (PCI) loans


61,073


67,460


69,255

Allowance for loan losses


(9,701)


(9,267)


(9,764)

Allowance for loan losses - PCI


(484)


(484)


(484)

Net loans


743,890


717,729


698,331








Bank premises and equipment, net


27,583


29,702


26,255

Bank premises and equipment held for sale


2,228


465


3,237

Other real estate owned


5,858


7,743


8,013

Covered FDIC receivable


-


669


978

Bank owned life insurance


21,466


21,004


21,278

Core deposit intangibles, net


3,282


4,713


5,190

FDIC indemnification asset


-


18,609


20,315

Other assets


17,465


12,966


13,631

Total assets

$

1,149,185

$

1,155,734

$

1,128,798








Liabilities







Deposits:







Noninterest bearing


99,549


84,564


81,526

Interest bearing


834,016


834,381


840,186

Total deposits


933,565


918,945


921,712

Federal funds purchased and securities sold under agreements to repurchase


958


14,500


3,287

Federal Home Loan Bank advances


95,844


96,401


81,584

Long term debt


6,476


9,680


9,680

Trust preferred capital notes


4,124


4,124


4,124

Other liabilities


5,263


4,434


3,863

Total liabilities

$

1,046,230

$

1,048,084

$

1,024,250








Shareholders' Equity







Common stock (200,000,000 shares authorized $0.01 par value; 21,848,489,
21,791,523, 21,782,826, shares issued and outstanding , respectively)


218


218


218

Additional paid in capital


145,751


145,321


145,238

(Accumulated deficit) retained earnings


(43,264)


(38,553)


(40,812)

Accumulated other comprehensive income (loss)


250


664


(96)

Total shareholders' equity


102,955


107,650


104,548

Total liabilities and shareholders' equity

$

1,149,185

$

1,155,734

$

1,128,798

 

 

COMMUNITY BANKERS TRUST CORPORATION










CONSOLIDATED STATEMENTS OF OPERATIONS










UNAUDITED CONDENSED












(Dollars in thousands)


YTD


Three months ended



YTD

Three months ended



2015


30-Sep-15


30-Jun-15



2014


30-Sep-14

Interest and dividend income












Interest and fees on loans

$

23,750

$

7,986

$

8,017


$

22,079

$

7,924

Interest and fees on PCI loans


6,221


1,730


2,418



9,058


2,646

Interest on federal funds sold


2


-


1



-


-

Interest on deposits in other banks


46


12


17



46


11

Interest and dividends on securities


-


-


-



-


-

Taxable


4,119


1,396


1,355



5,221


1,813

Nontaxable


1,568


599


525



595


271

Total interest and dividend income


35,706


11,723


12,333



36,999


12,665

Interest expense












Interest on deposits


4,457


1,523


1,486



4,365


1,504

Interest on borrowed funds


1,156


355


384



685


279

Total interest expense


5,613


1,878


1,870



5,050


1,783













Net interest income


30,093


9,845


10,463



31,949


10,882













Provision for loan losses


-


-


-



-


-

Net interest income after provision for loan losses


30,093


9,845


10,463



31,949


10,882













Noninterest income












Service charges on deposit accounts


1,668


583


557



1,634


584

Gain(loss) on securities, net


363


74


(8)



494


115

Gain on sale of other loans, net


69


-


23



153


78

Income on bank owned life insurance


562


188


188



578


193

Mortgage loan income


640


230


262



115


42

Other


554


178


184



463


154

Total noninterest income


3,856


1,253


1,206



3,437


1,166













Noninterest expense












Salaries and employee benefits


13,704


4,803


4,406



12,023


4,072

Occupancy expenses


1,976


669


620



1,966


631

Equipment expenses


782


282


260



734


255

FDIC assessment


644


187


221



611


210

Data processing fees


1,255


401


412



1,312


355

Indemnification asset amortization


16,195


13,803


1,154



4,415


1,439

Amortization of intangibles


1,431


477


477



1,431


477

Other real estate expenses


1,080


858


137



775


392

Other operating expenses


4,924


1,549


1,757



4,807


1,707

Total noninterest expense


41,991


23,029


9,443



28,074


9,538













Net income before income taxes


(8,042)


(11,931)


2,226



7,312


2,510

Income tax (benefit) expense


(3,331)


(4,215)


533



2,055


697

Net (loss) income


(4,711)


(7,716)


1,693



5,257


1,813

Dividends paid on preferred stock


-


-


-



247


-

Net income available to common












shareholders

$

(4,711)


(7,716)

$

1,693


$

5,010

$

1,813

 

 

COMMUNITY BANKERS TRUST CORPORATION











INCOME STATEMENT TREND ANALYSIS











UNAUDITED











(Dollars in thousands)

Three months ended


30-Sep-15

30-Jun-15

31-Mar-15

31-Dec-14

30-Sep-14

Interest and dividend income











Interest and fees on loans

$

7,986

$

8,017

$

7,747

$

7,556

$

7,924

Interest and fees on PCI loans


1,730


2,418


2,073


2,170


2,646

Interest on federal funds sold


-


1


1


-


-

Interest on deposits in other banks


12


17


17


15


11

Investments (taxable)


1,396


1,355


1,368


1,614


1,813

Investments (nontaxable)


599


525


444


371


271

Total interest income


11,723


12,333


11,650


11,726


12,665

Interest expense











Interest on deposits


1,523


1,486


1,448


1,493


1,504

Interest on borrowed funds


355


384


417


390


279

Total interest expense


1,878


1,870


1,865


1,883


1,783












Net interest income


9,845


10,463


9,785


9,843


10,882












Provision for loan losses


-


-


-


-


-

Net interest income after provision for loan losses


9,845


10,463


9,785


9,843


10,882












Noninterest income











Service charges on deposit accounts


583


557


528


566


584

Gain/(loss) on sale of securities, net


74


(8)


297


595


115

Gain on sale of other loans, net


-


23


46


48


78

Income on bank owned life insurance


188


188


186


191


193

Mortgage loan income


230


262


148


96


42

Other


178


184


192


336


154

Total noninterest income


1,253


1,205


1,397


1,832


1,166












Noninterest expense











Salaries and employee benefits


4,803


4,406


4,495


4,113


4,072

Occupancy expenses


669


619


688


631


631

Equipment expenses


282


260


240


223


255

FDIC assessment


187


220


237


194


210

Data processing fees


401


412


442


420


355

FDIC indemnification asset amortization


13,803


1,153


1,239


1,380


1,439

Amortization of intangibles


477


477


477


477


477

Other real estate expenses


858


137


85


(235)


392

Other operating expenses


1,549


1,759


1,616


1,540


1,707

Total noninterest expense


23,029


9,443


9,519


8,743


9,538












Net (loss) income before income taxes


(11,931)


2,226


1,663


2,932


2,510

Income tax (benefit) expense


(4,215)


533


351


673


697

Net (loss) income


(7,716)


1,693


1,312


2,259


1,813

Dividends on preferred stock


-


-


-


-


-

Net (loss) income available to common shareholders

$

(7,716)

$

1,693

$

1,312

$

2,259

$

1,813

 

 

COMMUNITY BANKERS TRUST CORPORATION












NET INTEREST MARGIN ANALYSIS














AVERAGE BALANCE SHEETS














(Dollars in thousands)


















Three months ended September 30, 2015


Three months ended September 30, 2014




Average Balance 
Sheet

Interest
Income /
Expense


Average
Rates
Earned /
Paid


Average Balance 
Sheet


Interest
Income /
Expense


Average
Rates
Earned /
Paid


ASSETS:

















Loans, including fees

$

688,200

$

7,986


4.60%


$

635,477



7,924


4.95%



PCI loans, including fees


62,584


1,730


10.97%



69,741



2,646


15.05%



Total loans


750,784


9,716


5.13%



705,218



10,570


5.95%



Interest bearing bank balances


12,724


12


0.36%



14,191



11


0.32%



Federal funds sold


-


-


-



179



-


0.10%



Securities (taxable)


224,479


1,396


2.49%



266,321



1,813


2.72%



Securities (tax exempt)(1)


85,803


908


4.23%



36,311



410


4.53%



Total earning assets


1,073,790


12,032


4.45%



1,022,220



12,804


4.97%



Allowance for loan losses


(10,306)







(10,670)








Non-earning assets


94,075







113,927








Total assets

$

1,157,559






$

1,125,477
























LIABILITIES AND

















SHAREHOLDERS' EQUITY















Demand - interest bearing

$

232,357

$

189


0.32%


$

207,080



151


0.29%



Savings


86,431


69


0.31%



77,287



60


0.31%



Time deposits


523,868


1,265


0.96%



556,079



1,293


0.92%



Total interest bearing deposits


842,656


1,523


0.72%



840,446



1,504


0.71%



Short-term borrowings


1,371


2


0.62%



1,744



2


0.61%



FHLB and other borrowings


91,913


276


1.19%



85,550



170


0.79%



Long- term debt


7,268


77


4.14%



10,387



107


4.02%



Total interest bearing liabilities


943,208


1,878


0.79%



938,127



1,783


0.75%



Noninterest bearing deposits


101,582







79,434








Other liabilities


4,252







4,109








Total liabilities


1,049,042







1,021,670








Shareholders' equity


108,517







103,807








Total liabilities and Shareholders'

















equity

$

1,157,559






$

1,125,477








Net interest earnings



$

10,154







$

11,021





Interest spread






3.66%








4.22%



Net interest margin






3.75%








4.28%



















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









































 

 

COMMUNITY BANKERS TRUST CORPORATION












NET INTEREST MARGIN ANALYSIS















AVERAGE BALANCE SHEETS
















(Dollars in thousands)


















Nine months ended September 30, 2015


Nine months ended September 30, 2014




Average Balance 
Sheet

Interest Income / Expense


Average Rates Earned / Paid


Average Balance 
Sheet


Interest Income / Expense


Average Rates Earned / Paid


ASSETS:

















Loans, including fees

$

679,262

$

23,750


4.67%


$

612,771


$

22,079


4.82%



PCI loans, including fees


64,805


6,221


12.83%



71,160



9,058


17.02%



Total loans


744,067


29,971


5.39%



683,931



31,137


6.09%



Interest bearing bank balances


16,663


46


0.37%



19,757



46


0.31%



Federal funds sold


2,476


2


0.10%



520



-


0.10%



Securities (taxable)


221,052


4,119


2.48%



271,680



5,221


2.56%



Securities (tax exempt)(1)


74,118


2,376


4.27%



26,322



901


4.56%



Total earning assets


1,058,376


36,514


4.61%



1,002,210



37,305


4.98%



Allowance for loan losses


(9,913)







(10,808)








Non-earning assets


98,238







115,194








Total assets

$

1,146,701






$

1,106,596
























LIABILITIES AND

















SHAREHOLDERS' EQUITY

















Demand - interest bearing

$

226,497

$

512


0.30%


$

199,297


$

441


0.30%



Savings


83,570


194


0.31%



76,654



192


0.34%



Time deposits


525,309


3,751


0.95%



556,915



3,732


0.90%



Total interest bearing deposits


835,376


4,457


0.71%



832,866



4,365


0.70%



Short-term borrowings


1,062


5


0.57%



986



4


0.57%



FHLB and other borrowings


95,921


898


1.25%



82,629



493


0.80%



Long- term debt


8,125


253


4.10%



6,200



188


4.00%



Total interest bearing liabilities


940,484


5,613


0.80%



922,681



5,050


0.74%



Noninterest bearing deposits


92,619







73,962








Other liabilities


4,187







4,186








Total liabilities


1,037,290







1,000,829








Shareholders' equity


109,411







105,767








Total liabilities and Shareholders'

















equity

$

1,146,701






$

1,106,596








Net interest earnings



$

30,901







$

32,255





Interest spread






3.81%








4.24%



Net interest margin






3.90%








4.30%



















(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). 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.

Common tangible book value equals total shareholders' 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.

The following table reconciles these non-GAAP measures from their respective GAAP basis measures.

Common Tangible Book Value









(Dollars in thousands)


30-Sep-15


30-Jun-15


31-Dec-14


30-Sep-14










Total shareholders' equity

$

102,955

$

109,179

$

107,650

$

104,548

Core deposit intangible (net)


3,282


3,759


4,713


5,190

Common tangible book value

$

99,673

$

105,420

$

102,937

$

99,358

Shares outstanding


21,848


21,828


21,792


21,783

Common tangible book value per share

$

4.56

$

4.83

$

4.72

$

4.56










Stock Price

$

5.01

$

4.97

$

4.42

$

4.37










Price/common tangible book


109.87%


102.90%


93.64%


95.83%










Common tangible book/common tangible assets









Total assets

$

1,149,185

$

1,159,131

$

1,155,734

$

1,128,798

Core deposit intangible


3,282


3,759


4,713


5,190

Common tangible assets

$

1,145,903

$

1,155,372

$

1,151,021

$

1,123,608

Common tangible book 

$

99,673

$

105,420

$

102,937

$

99,358

During the third quarter of 2015, the Company charged off its outstanding indemnification asset in connection with its termination of the FDIC shared-loss agreements.  Such charge-off was a one-time event and created both a net loss before income tax expense for each of the three months and nine months ended September 30, 2015 and a corresponding income tax benefit for such periods, as reflected in the Company's Consolidated Statements of Operations presented above.  The following table presents net income before income tax expense and the corresponding income tax expense and net income after income tax expense, without giving effect to the impact of the indemnification asset charge-off, for each of the three months and nine months ended September 30, 2015.  The Company believes that this non-GAAP information is useful to investors because it presents net income for the applicable periods without the significant one-time charge and thus presents more accurately this financial statement item as it relates to the Company's core operations.



Three months ended


Nine months ended



30-Sep-15


30-Sep-15

Net (loss) before income taxes


$          (11,931)


$         (8,042)

FDIC shared-loss agreement charge


13,084


13,084

Net income, before tax, without effect of FDIC charge


1,153


5,042

Income tax expense, without effect of FDIC charge


300


1,311

Net income, without effect of FDIC charge


$                  853


$           3,731







 

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SOURCE Community Bankers Trust Corporation



RELATED LINKS

http://www.cbtrustcorp.com