Community Bankers Trust Corp (ESXB) 10-Q Quarterly Report Thu Aug 08 2019

Richmond, VA, July 26, 2019 - Community Bankers Trust Corporation (the “Company”) (NASDAQ: ESXB), the holding company for Essex Bank (the “Bank”), today reported results for the second quarter and first six months of 2019.

Income Statement- Three Months ended June 30, 2019 compared with Three Months ended March 31, 2019

Net income of $3.5 million for the second quarter of 2019 is an increase of $41,000, or 1.2%, on a linked quarter basis.

Interest and fees on loans increased $221,000, or 1.8%.

Interest expense increased $225,000, or 6.1%.

Noninterest income increased $437,000, or 43.1%.

There was a provision for loan losses of $125,000 in the second quarter of 2019.

Basic and diluted earnings per common share were $0.16 in each of the first and second quarters of 2019.

Return on average assets, annualized, was 1.01% and return on average equity, annualized, was 9.79% in the second quarter.

Income Statement- Six Months ended June 30, 2019 compared with Six Months ended June 30, 2018

Net income of $7.0 million is an increase of $671,000, or 10.5%.

Interest income of $31.7 million is an increase of $3.1 million, or 10.9%.

Interest and fees on loans increased $2.8 million, or 12.7%.

Net interest income increased $1.0 million, or 4.4%.

Return on average assets, annualized, was 1.01% and return on average equity, annualized, was 9.90% for the first six months of 2019.

Income Statement- Three Months ended June 30, 2019 compared with Three Months ended June 30, 2018

Net income of $3.5 million for the second quarter of 2019 is a decrease year-over-year of $238,000, or 6.3%.

Interest and dividend income increased $1.4 million, or 9.6%, in the second quarter of 2019 over the same period in 2018, led by interest and fees on loans, which increased $1.3 million, or 11.3%.

Net interest income increased $353,000, or 3.0%, year-over-year.

Noninterest income increased by $316,000, or 27.8%.

One-time costs were $254,000 in the second quarter of 2019 and included $210,000 associated with the closing of an underperforming branch and $44,000 in one-time pension costs from a senior officer retirement.

Net interest margin has remained stable at 3.69% in the second quarter compared with 3.73% the same period one year ago.

Balance Sheet- Year-over-Year June 30, 2019 compared with June 30, 2018

Loans grew $56.9 million, or 5.9%, from $967.4 million at June 30, 2018 to $1.024 billion at June 30, 2019.

Noninterest bearing deposits grew $28.4 million, or 18.7%, year-over-year and totaled $180.4 million, representing 14.8% of total deposits, an increase from 13.5% one year ago.

Deposits increased $92.3 million, or 8.2%.

Federal Home Loan Bank borrowings declined $42.0 million, in part, due to growth in noninterest bearing accounts.

Other real estate owned was $983,000 at June 30, 2019, down from $3.1 million at June 30, 2018.

MANAGEMENT COMMENTS

Rex L. Smith, III, President and Chief Executive Officer, stated, “The Company experienced better than expected balance sheet growth as total assets were $31.9 million higher than the prior quarter end and $77.3 million higher year over year. The second quarter was characterized by sound loan growth in terms of both size and quality, strong demand deposit growth, and increased noninterest income. Total loans grew $56.9 million since June 30, 2018, and the yield on loans increased by 26 basis points from the second quarter of 2018. Additionally, noninterest bearing deposit growth exceeded expectations, ending the quarter at $180.4 million, up over 18% year over year.”

The following information was filed by Community Bankers Trust Corp (ESXB) on Friday, July 26, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Community Bankers Trust Corp's 10-Q Quarterly Report:

Financial - Expense Highlight
Offsetting these increases was an increase of $125,000 in provision for loan losses and $804,000 in noninterest expenses, of which $254,000 was in salaries and employee benefits, $246,000 in other operating expenses and $150,000 in occupancy expenses.

Financial - Earnings Highlight
The margin remained stable as a result of growth of $16.4 million, or 13.1%, in the average balance in shareholders equity and growth of $15.2 million, or 10.1%, in the average balance of noninterest bearing deposits.
Financial - Earnings Highlight
Offsetting these increases to net income were increases of $2.1 million in interest expense, $125,000 in provision for loan losses, $278,000 in noninterest expense and $234,000 in income tax expense.
Financial - Income Highlight
The increase in interest income was generated by an increase of $49.8 million, or 3.9%, in the level of average earning assets coupled with an increase in the yield on earning assets.
Financial - Expense Highlight
Overall, the Banks cost of interest bearing liabilities increased 37 basis points, from 1.08% in the second quarter of 2018 to 1.45% in the second quarter of 2019.
Financial - Expense
The cost of interest bearing...Read more
Financial - Earnings
The yield on earning assets...Read more
Financial - Cash Flow
Any remaining increase in cash...Read more
Financial - Expense
Likewise, the cost of these...Read more
Financial - Earnings
The determination of capital adequacy...Read more
Financial - Earnings
The allowance for loan losses...Read more
Other - Other
Actual losses could differ significantly...Read more
Financial - Earnings
These forward-looking statements include statements...Read more
Financial - Earnings
The following tables set forth,...Read more
Financial - Earnings
While the yield on earning...Read more
Financial - Earnings
The tax-equivalent net interest margin...Read more
M & A - Other
Financial Accounting Standards Board (FASB)...Read more
Revenue - Product
Loans carried at fair value,...Read more
Other - Other
Effective September 2018, the Federal...Read more
Other - Other
The unallocated component covers uncertainties...Read more
Other - Other
In addition, regulatory agencies, as...Read more
Other - Other
Although the economics of the...Read more
Other - Other
Management determines the significance of...Read more
Financial - Cash Flow
The Company?s cash flow hedges...Read more
Financial - Cash Flow
Subsequent increases in cash flows...Read more
Other - Other
Construction and land development loans...Read more
Financial - Expense
Equipment expenses increased by $117,000...Read more
Financial - Expense
Noninterest expenses were $9.0 million...Read more
Financial - Cash Flow
For loans that are also...Read more
Financial - Cash Flow
Any remaining increase in cash...Read more
Other - Other
Gain on securities transactions increased...Read more
Financial - Income
Interest income on securities was...Read more
Financial - Income
Securities income increased $313,000 for...Read more
Financial - Cash Flow
44 The Company designates derivatives...Read more
Financial - Income
On a tax-equivalent basis, income...Read more
Financial - Income
Noninterest income increased by $316,000...Read more
Financial - Income
Noninterest income was $2.5 million...Read more
Other - Other
Under the final rule on...Read more
Other - Other
At June 30, 2019, the...Read more
Financial - Expense
Other operating expenses of $1.6...Read more
Financial - Income
Noninterest income increased $316,000, or...Read more
Financial - Expense
Interest expense increased $1.0 million,...Read more
Financial - Cash Flow
The excess of the contractual...Read more
Other - Other
Total assets increased $38.0 million,...Read more
Financial - Dividend
Increases were in interest and...Read more
Other - Other
Those guarantees are primarily issued...Read more
Financial - Expense
Also impacting noninterest expenses for...Read more
Other - Other
The allowance for loan losses...Read more
Other - Other
Second mortgages on residential 1-4...Read more
Financial - Expense
Interest expense of $7.6 million...Read more
Other - Other
Money market deposit accounts grew...Read more
Other - Other
This evaluation does not include...Read more
Financial - Expense
Interest expense on deposits increased...Read more
Financial - Earnings
Net income increased $671,000 and...Read more
Other - Other
Although the Company believes that...Read more
Other - Other
The average balance of FHLB...Read more
Other - Other
33 Agriculture loans carry risks...Read more
Financial - Income
Accretable yield is recognized as...Read more
Financial - Expense
The increase in deposit cost...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Community Bankers Trust Corp provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Ticker: ESXB
CIK: 1323648
Form Type: 10-Q Quarterly Report
Accession Number: 0001558370-19-007648
Submitted to the SEC: Thu Aug 08 2019 10:17:19 AM EST
Accepted by the SEC: Thu Aug 08 2019
Period: Sunday, June 30, 2019
Industry: State Commercial Banks