Community Bankers Trust Corp (ESXB) 10-Q Quarterly Report Fri Aug 13 2021

Richmond, VA, July 30, 2021 - Community Bankers Trust Corporation (the “Company”) (NASDAQ: ESXB), the holding company for Essex Bank (the “Bank”), today reported results for the quarter ended June 30, 2021.

Financial HIGHLIGHTS

Net income was $5.4 million for the quarter ended June 30, 2021, compared with net income of $6.6 million in the first quarter of 2021 and net income of $4.2 million in the second quarter of 2020.

There was no provision for loan losses recorded for the quarter. In the first quarter of 2021 the allowance for loan losses reflected a reserve recovery of $1.4 million.

Net interest income was $14.5 million for the second quarter of 2021, a linked quarter increase of $419,000, or 3.0%.

Interest on deposits declined $218,000 on a linked quarter basis, and the associated cost of funds declined from 0.58% to 0.48%.

Merger related expenses of $570,000 were incurred in the second quarter.

Diluted earnings per share were $0.24 for the second quarter of 2021 compared with $0.30 for the first quarter of 2021 and $0.18 for the second quarter of 2020.

Return on average assets (ROA) was 1.28% for the second quarter of 2021 compared with 1.60% for the first quarter of 2021 and 1.06% for the second quarter of 2020. For the first six months, the ROA was 1.44% in 2021 and 0.88% for 2020.

Return on average equity (ROE) was 12.46% for the second quarter of 2021 compared with 15.46% for the first quarter of 2021 and 10.46% for the second quarter of 2020. For the first six months, the ROE was 13.95% for 2021 compared with 8.30% for 2020.

operating Highlights

Loans, excluding purchased credit impaired (PCI) loans, declined $10.9 million, or 0.9%, during the second quarter of 2021. Loans grew $26.5 million, or 2.3%, year over year.

In April 2021, the Company sold an item included in other real estate owned at March 31, 2021 in the amount of $3.8 million.

Nonperforming assets were $3.9 million at June 30, 2021, $4.8 million lower than one year earlier. The ratio of nonperforming assets to loans and other real estate was 0.33% at June 30, 2021 compared with 0.65% at March 31, 2021 and 0.74% one year earlier.

Deposits grew $49.5 million, or 3.4%, during the second quarter of 2021, and have grown $125.2 million, or 9.2%, year over year.

Noninterest bearing deposits grew $60.9 million, or 21.9%, year over year.

Net interest margin was 3.58% in the second quarter of 2021 compared with 3.66% in the first quarter of 2021 and 3.40% in the second quarter of 2020. The net interest margin was 3.62% for the first six months of 2021 compared with 3.53% for the same period in 2020.

PPP loan balances, net of fees, decreased $15.7 million during the second quarter of 2021 and were $52.0 million at June 30, 2021 compared with $49.3 million at December 31, 2020 and $83.5 million at June 30, 2020.

As a result of the deposit growth noted above, total securities and cash and equivalents grew $76.4 million during the second quarter and substantially increased liquidity.

On June 2, 2021, the Company entered into a merger agreement with United Bankshares, Inc. (“United”), the parent company of United Bank. Under the merger agreement, United will acquire 100% of the outstanding shares of the Company’s common stock in exchange for shares of United’s common stock. The exchange ratio will be fixed at 0.3173 of United’s shares for each share of the Company. The merger is expected to close in the fourth quarter of 2021, subject to satisfaction of customary closing conditions, including receipt of regulatory approvals and approval by the Company’s shareholders. Upon closing, the Company will merge into United, and Essex Bank will merge into United Bank, with United and United Bank being the surviving entities.

MANAGEMENT COMMENTS

Rex L. Smith, III, President and Chief Executive Officer, stated, “The balance sheet continues to strengthen with asset quality and liquidity at the best levels in the history of the Company. Net interest margin continues to improve and while year to date loan growth is below expectations we remain positive for the rest of 2021.”

The following information was filed by Community Bankers Trust Corp (ESXB) on Friday, July 30, 2021 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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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: 0001558370-21-011618
Submitted to the SEC: Fri Aug 13 2021 11:14:29 AM EST
Accepted by the SEC: Fri Aug 13 2021
Period: Wednesday, June 30, 2021
Industry: State Commercial Banks

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Community Bankers Trust Corp (ESXB) SEC Filing 10-Q Quarterly Report for the period ending Wednesday, June 30, 2021

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