GLEN ALLEN, Va., July 30 /PRNewswire-FirstCall/ -- Community Bankers Trust Corporation (the "Company") (NYSE Amex: BTC), reported its results of operations for the three and six months ended June 30, 2010.
In response to the results of an extensive independent loan review and an increase in nonperforming loans during the quarter, the Company expensed, through its provision for loan losses, $21.3 million, thereby increasing the allowance for loan losses to total non-covered loans to 6.89% at June 30, 2010, from 3.42% at March 31, 2010. The net loss available to common stockholders for the second quarter of 2010 was $19.9 million compared to a net loss available to common stockholders of $23.6 million for the same period in 2009. The Company's performance in both quarters was affected by the recognition of goodwill impairment charges, specifically $5.7 million for the second quarter of 2010 and $24.0 million for the second quarter of 2009. Goodwill impairment is a non-cash adjustment that has no effect on the Company's tangible equity ratio, regulatory capital ratios, cash flows or liquidity position.
The Company also noted the following with respect to the second quarter of 2010 results:
-- The level of total impaired loans increased from $78.5 million at March 31, 2010 to $125.2 million at June 30, 2010. -- Excluding FDIC covered assets, the allowance for loan losses to nonperforming assets increased from 65.40% at March 31, 2010 to 84.27% at June 30, 2010. -- Excluding FDIC covered assets, the allowance for loan losses to nonaccrual loans increased from 68.97% at March 31, 2010 to 93.03% at June 30, 2010. -- The $5.7 million expense related to the impairment of the remaining goodwill from the 2008 acquisitions of BOE Financial Services of Virginia, Inc. and TransCommunity Financial Corporation. -- The ratio of non-covered, nonperforming assets to total assets was 3.82% at June 30, 2010, increasing from 2.47% at March 31, 2010. -- Net interest income was constant, at $10.1 million for the second quarter of each of 2010 and 2009, despite a decline in total loan balances of $34.6 million from June 30, 2009 to June 30, 2010. -- The net interest margin was 4.04% for the second quarter of 2010, up from 3.74% in the second quarter of 2009, as a result of reduced funding costs. -- Noninterest expenses were $10.5 million for both the second quarter of each of 2010 and 2009. -- The Company had no loans 90 days or more past due and still accruing at June 30, 2010.
George M. Longest, Jr., President and Chief Executive Officer commented, "During the second quarter of 2010, we performed an extensive loan review which closely examined 65% of our non-covered loan portfolio, including 89% of our acquisition, development and construction loans and 82% of all non-owner occupied commercial real estate loans. The purpose of this review was to further determine the level of credit risk in our portfolio. The review, along with a more conservative internal recognition of problem loans, contributed to the increase in our loans deemed "impaired." While there is remaining uncertainty in the markets we serve, we believe we have reserved an appropriate amount for the credit risk which currently exists in our portfolio, and we are focused on normalizing the provision for loan losses in future quarters. We have also been performing a horizontal review of our loan portfolio to ensure that we have taken all steps to protect our borrowing positions with our customers. This includes analyzing the quality of the entire credit process, improving documentation standards, and certifying the risk ratings of all active loans.
Mr. Longest continued, "During the second quarter of 2010, we announced a change in strategic direction of the company. Our strategy has shifted from that of an aggressive acquisition platform, to one that meets the banking needs of the communities we serve, while providing sustainable returns to our stockholders. To this end, we are taking the necessary steps to return immediately to profitability. We are actively analyzing our market base to assess the contributions of all branches to our franchise value and will take the appropriate actions in the third quarter of this year. Additionally, we will make aggressive expense reductions, and will look to restructure and strengthen the balance sheet. We are confident that the analysis of these potential critical paths and the resulting execution of these initiatives will lead us back to profitability quickly."
Mr. Longest added, "Our goal is an immediate return to consistent quarterly profits. To accomplish this, we have no alternative as a Company but to make clear and intelligent decisions in the next 60 days, no matter how difficult, to accomplish that goal as soon as possible. That is our full focus."
RESULTS OF OPERATIONS
Net loss available to common stockholders was $19.9 million or ($0.93) per common share on a diluted basis, for the quarter ended June 30, 2010 compared with a loss of $23.6 million or ($1.10) per common share on a diluted basis, for the quarter ended June 30, 2009. The loss for the quarter was primarily driven by two factors: $21.3 million in loan loss provisions coupled with the impairment charge for the remaining $5.7 million non tax deductible goodwill. Economic conditions, evidenced by the significant loan loss provision taken this quarter, warranted an impairment evaluation of goodwill prior to the annual evaluation date of December 31, 2010. While losses were less than the same quarter in the prior year, the net losses in 2009 were driven by a non tax deductible goodwill impairment charge of $24.0 million.
For the six months ended June 30, 2010, net losses available to common stockholders was $22.9 million, compared with net losses available to common stockholders of $13.7 million for the same period in 2009. These losses represented ($1.07) per share on a fully diluted basis, versus ($0.64) for the first six months of 2009. Losses for the six months ended June 30, 2010, were driven by $26.3 million in loan loss provisions and the aforementioned non tax deductible goodwill impairment charge. The losses evidenced in the first six months of 2009 were the result of the $24.0 million goodwill impairment charge which was partially offset by a one-time pre-tax gain of $20.3 million related to the Suburban Federal Savings Bank (SFSB) transaction in the first quarter of the year.
Net loss exclusive of tax affected provision for loan losses, securities gains/(losses) and impairments, core deposit intangible amortization and goodwill impairments would have been net income of $829,000 and $1.5 million for the second quarter and six months ended June 30, 2010, respectively.
Net Interest Income
Net interest income on a tax equivalent basis was $10.6 million for the quarter ended June 30, 2010, increasing only $70,000 from the same quarter in 2009. Loan interest income was adversely affected by declining loan balances as well as an increase in nonperforming loans throughout the second half of 2009 and the first six months of 2010. However, an aggressive deposit pricing strategy with respect to all deposit categories more than offset the decline in loan income noted above, which resulted in the slight increase in net interest income. Interest expense on deposits equalled $4.5 million for the three months ended June 30, 2010, which represented a $1.8 million or 28.8% improvement from the same quarter in 2009.
Net interest income on a tax equivalent basis increased $1.5 million, or 7.5%, for the first six months of 2010 versus the same period in 2009. A decline in interest income on a tax equivalent basis from all earning assets of $2.7 million was off-set by lower deposit expenses as mentioned above. Interest expense totalled $10.0 million for the six months ended June 30, 2010 compared with $13.2 million for the same period in 2009, a $3.1 million or 23.9% improvement.
Average interest-earning assets decreased $74.9 million to $1.046 billion for the quarter ended June 30, 2010 compared with $1.121 billion for the quarter ended June 30, 2009. The decrease in average interest-earning assets was attributable to a $44.3 million decline in taxable securities coupled with a $17.8 million decline in loans in the quarter ended June 30, 2010 compared with the quarter ended June 30, 2009. Average interest bearing liabilities declined $44.2 million for the same period which was directly attributable to time deposit run-off.
The net interest margin on a tax equivalent basis increased 30 basis points to 4.04% for the quarter ended June 30, 2010 compared with 3.74% for the quarter ended June 30, 2009. The primary component influencing net interest income, as well as the net interest margin, was a lower overall interest expense relative to the deposit base. Management proactively lowered rates on virtually all deposits during the first half of 2010 and throughout 2009 in an effort to enhance earnings. This resulted in a 63 basis point decline in the cost of deposits for the quarter ended June 30, 2010 versus the same period in 2009. The most significant influence on the cost of funds for the Bank was the repricing of the time deposit base during the same period. The average cost of time deposits declined 67 basis points from 2.99% for the quarter ended June 30, 2009 to 2.32% for the quarter ended June 30, 2010. This improvement was the direct result of prudent deposit pricing in all regions, while not compromising the Bank's liquidity.
An additional benefit to the net interest margin was the improved yield on FDIC covered loans. The yield on covered loans equaled 9.76% for the quarter ended June 30, 2010, an improvement of 46 basis points from the second quarter of 2009. This is primarily the result of better than expected performance on these loans.
For the first six months of 2010, the net interest margin on a tax equivalent basis increased 47 basis points to 4.04% compared with 3.57% for the same period in 2009. As noted above, the primary component influencing net interest income, as well as the net interest margin, was a lower overall interest expense relative to the deposit base. The cost of deposits for this time period declined 61 basis points from 2.52% to 1.91% over these respective periods.
An additional benefit to the net interest margin for the first six months of the year again was the improved yield on FDIC covered loans. The yield on these loans improved 62 basis points from the first six months of 2009 to the same period in 2010.
Provision for Loan Losses
The Company made $20.4 million in provision for loan losses for non-covered loans for the quarter ended June 30, 2010 and a $540,000 provision for the quarter ended June 30, 2009. The ratio of the allowance for loan losses to nonperforming non-covered loans was 93.0% at June 30, 2010 compared with 90.8% at December 31, 2009. The ratio of allowance for loan losses to total non-covered loans was 6.89% at June 30, 2010 compared with 3.14% at December 31, 2009. For the quarter ended June 30, 2010, net charge-offs were $1.4 million compared with net charge-offs of $102,000 for the quarter ended June 30, 2009.
The provision for loan losses for non-covered loans totalled $24.4 million for the six months ended June 30, 2010 versus $6.0 million for the same period in 2009. Through the first six months of 2010, the Company had net charge-offs on non-covered loans of $4.8 million versus $794,000 for the same period in 2009.
The increase to the loan loss reserves as a percentage of total non-covered loans during the first half of 2010 reflects economic conditions that have continued to show signs of deterioration for classified assets. The significant loan loss provision for the quarter was due primarily to the following:
1. An increase in non-performing loans of $13.0 million since March 31, 2010, and $21.4 million since December 31, 2009. 2. An increase in impaired loans of $46.7 million since March 31, 2010, and $68.7 million since December 31, 2009. 3. A desire to further insulate from the economic downturn.
Management continues to monitor the loan portfolio closely and make appropriate adjustments using the Company's internal risk rating system.
The Company did make a provision for loan losses on the covered loan portfolio for the second quarter of 2010 of $880,000. This provision was due solely to timing differences in expected cash flows, not an increase in expected losses. There was no provision for covered loans in 2009 or the first quarter of 2010.
Loans Not Covered by the FDIC Shared-Loss Agreement
The Company's non-covered loans at June 30, 2010 and December 31, 2009 were comprised of the following (dollars in thousands):
June 30, 2010 December 31, 2009 ------------- ----------------- Amount % of Non- Amount % of Non- ------ Covered ------ Covered Loans Loans ----- ----- Mortgage loans on real estate: Residential 1-4 family $150,913 26.80% $146,141 25.22% Commercial 209,205 37.16% 188,991 32.62% Construction and land development 114,626 20.36% 144,297 24.91% Second mortgages 10,585 1.88% 13,935 2.41% Multifamily 13,231 2.35% 11,995 2.07% Agriculture 4,124 0.73% 5,516 0.95% ----- ---- ----- ---- Total real estate loans 502,684 89.28% 510,875 88.18% Commercial loans 47,108 8.37% 42,157 7.28% Consumer installment loans 9,757 1.73% 14,145 2.44% All other loans 3,493 0.62% 12,205 2.10% ----- ---- ------ ---- Gross loans 563,042 100.00% 579,382 100.00% ------- ====== ------- ====== Less allowance (38,785) (18,169) Less unearned income on loans (503) (753) Non-covered loans, net of unearned income $523,754 $560,460 ======== ======== Asset Quality - non-covered assets
At June 30, 2010, non-covered nonperforming assets totaled $46.0 million and net charge-offs were $4.8 million for the six month period then ended. This compares with nonperforming assets of $21.8 million and net charge-offs of $7.9 million at and for the year ended December 31, 2009. Nonperforming loans increased $21.4 million during the first six months of 2010.
The following table sets forth selected asset quality data, excluding FDIC covered assets, and ratios for the dates indicated:
(dollars in thousands) June 30, December 31, 2010 2009 --------- ------------- Nonaccrual loans $41,690 $20,011 Loans past due over 90 days and accruing interest - 247 --- --- Total nonperforming non-covered loans 41,690 20,258 Other real estate owned (OREO) - non-covered 4,333 1,586 ----- ----- Total nonperforming non-covered assets $46,023 $21,844 ======= ======= Balances -------- Allowance for loan losses $38,785 $18,169 Average loans during quarter, net of unearned income 575,457 573,367 Loans, net of unearned income 562,539 578,629 Ratios ------ Allowance for loan losses to loans 6.89% 3.14% Allowance for loan losses to nonperforming assets 84.27% 83.18% Allowance for loan losses to nonaccrual loans 93.03% 90.80% Nonperforming assets to loans and other real estate 8.12% 3.77% Net charge-offs for quarter to average loans, annualized .98% 4.09%
A further breakout of nonaccrual loans, excluding covered loans, at June 30, 2010 and December 31, 2009 is below (dollars in thousands):
June 30, 2010 ------------- Amount Non- % of of Non Covered Non- Accrual Loans Covered ------- ----- Loans ----- Mortgage loans on real estate: Residential 1-4 family $6,864 $150,913 4.55% Commercial 4,285 209,205 2.05% Construction and land development 26,009 114,626 22.69% Second mortgages 162 10,585 1.53% Multifamily - 13,231 - Agriculture - 4,124 - --- ----- Total real estate loans 37,320 502,684 7.42% Commercial loans 4,047 47,108 8.59% Consumer installment loans 263 9,757 2.70% All other loans 60 3,493 1.72% --- ----- Gross loans $41,690 $563,042 7.40% ======= ======== December 31, 2009 ----------------- Amount Non- % of of Non Covered Non- Accrual Loans Covered ------- ----- Loans ----- Mortgage loans on real estate: Residential 1-4 family $4,750 $146,141 3.25% Commercial 3,861 188,991 2.04% Construction and land development 10,115 144,297 7.01% Second mortgages 194 13,935 1.39% Multifamily - 11,995 - Agriculture - 5,516 - --- ----- Total real estate loans 18,920 510,875 3.70% Commercial loans 174 42,157 0.41% Consumer installment loans 910 14,145 6.43% All other loans 7 12,205 0.06% --- ------ Gross loans $20,011 $579,382 3.45% ======= ========
Impaired loans, by definition, are loans where management believes that it is more likely than not that the borrower will not be able to fully meet its contractual obligations, including all principal and interest payments. Under the Company's current internal loan grading system, this includes all loans adversely classified "substandard" or worse. These impaired loans have been determined through analysis, appraisals, or other methods used by management.
At June 30, 2010 and December 31, 2009, total impaired non-covered loans equaled $125.2 million and $56.5 million, respectively. Management has adopted a nine point risk rating system for which credits are continually monitored for proper classification. The increase in impaired loans demonstrates weakening economic conditions specifically in the real estate market and management's determination that these credits warrant substandard or worse classification
The following is a summary of information for impaired and nonaccrual loans at June 30, 2010, December 31, 2009 and June 30, 2009 for non-covered loans (dollars in thousands):
June 30, December June 30, 2010 31, 2009 2009 ---- -------- ---- Impaired loans without a valuation allowance $65,546 $23,109 $24,188 Impaired loans with a valuation allowance 59,628 33,347 24,681 ------ ------ ------ Total impaired loans $125,174 $56,456 $48,869 ======== ======= ======= Valuation allowance related to impaired loans $15,145 $8,779 $6,729 About Community Bankers Trust Corporation
The Company is the holding company for Essex Bank, a Virginia state bank with 25 full-service offices, 14 of which are in Virginia, seven of which are in Maryland and four of which are in Georgia. The Company also operates two loan production offices. Additional information is available on the Company's website at http://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, growth 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 Company's compliance with, and the timing of future reimbursements from the FDIC to the Company, under the shared-loss agreements; consumer profiles and spending and savings habits; the securities and credit markets; costs associated with the integration of banking and other internal operations; management's evaluation of goodwill and other assets on a periodic basis, and any resulting impairment charges, under applicable accounting standards; 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, 2009 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 STATEMENTS OF FINANCIAL CONDITION AS OF JUNE 30, 2010 AND DECEMBER 31, 2009 December 31, June 30, 2010 2009 ------------- ------------- (Unaudited) (Audited) ASSETS (dollars in thousands) Cash and due from banks $18,544 $13,575 Interest bearing bank deposits 10,871 18,660 Federal funds sold 16,729 - ------ --- Total cash and cash equivalents 46,144 32,235 Securities available for sale, at fair value 213,925 179,440 Securities held to maturity, at cost (fair value of $102,952 and $117,008, respectively) 98,070 113,165 Equity securities, restricted, at cost 8,331 8,346 ----- ----- Total securities 320,326 300,951 Loans not covered by FDIC shared-loss agreement (net of allowance for loan losses of $38,785 and $18,169, respectively) 523,754 560,460 Loans covered by FDIC shared- loss agreement (net of allowance for loan losses of $829 and $0, respectively) 132,131 150,935 ------- ------- Net loans 655,885 711,395 FDIC indemnification asset 70,662 76,107 Bank premises and equipment, net 36,344 37,105 Other real estate owned, covered by FDIC shared-loss agreement 8,755 12,822 Other real estate owned, non-covered 4,333 1,586 Bank owned life insurance 6,689 6,534 FDIC receivable under shared- loss agreement 15,595 7,950 Core deposit intangibles, net 15,949 17,080 Goodwill - 5,727 Other assets 23,212 17,231 ------ ------ Total assets $1,203,894 $1,226,723 ========== ========== LIABILITIES Deposits: Noninterest bearing $67,223 $62,198 Interest bearing 977,264 969,204 ------- ------- Total deposits 1,044,487 1,031,402 Federal funds purchased - 8,999 Federal Home Loan Bank advances 37,000 37,000 Trust preferred capital notes 4,124 4,124 Other liabilities 9,175 13,604 ----- ------ Total liabilities 1,094,786 1,095,129 --------- --------- STOCKHOLDERS' EQUITY Preferred stock (5,000,000 shares authorized, $0.01 par value; 17,680 shares issued and outstanding) 17,680 17,680 Warrants on preferred stock 1,037 1,037 Discount on preferred stock (757) (854) Common stock (200,000,000 shares authorized, $0.01 par value; 21,468,455 shares issued and outstanding) 215 215 Additional paid in capital 143,999 143,999 Retained deficit (55,797) (32,019) Accumulated other comprehensive income 2,731 1,536 ----- ----- Total stockholders' equity 109,108 131,594 ------- ------- Total liabilities and stockholders' equity $1,203,894 $1,226,723 ========== ========== COMMUNITY BANKERS TRUST CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2010 AND 2009 (dollars and shares in thousands, except per share data) (unaudited) For the three months For the six months ended ended -------------------- ------------------ June 30, June 30, June 30, June 30, 2010 2009 2010 2009 --------- --------- --------- -------- Interest and dividend income (Restated) (Restated) ---------- ---------- Interest and fees on non covered loans $8,478 $8,959 $17,201 $17,416 Interest and fees on FDIC covered loans 3,386 4,278 6,979 7,228 Interest on federal funds sold 3 12 4 26 Interest on deposits in other banks 24 81 54 202 Interest and dividends on securities Taxable 2,162 2,607 4,167 5,499 Nontaxable 880 820 1,774 1,577 --- --- ----- ----- Total interest and dividend income 14,933 16,757 30,179 31,948 Interest expense Interest on deposits 4,486 6,299 9,343 12,417 Interest on federal funds purchased 1 4 1 4 Interest on other borrowed funds 333 386 664 733 --- --- --- --- Total interest expense 4,821 6,689 10,008 13,154 ----- ----- ------ ------ Net interest income 10,113 10,068 20,171 18,794 Provision for loan losses 21,282 540 26,324 6,040 ------ --- ------ ----- Net interest income after provision for loan losses (11,169) 9,528 (6,153) 12,754 ------- ----- ------ ------ Noninterest income Service charges on deposit accounts 622 618 1,187 1,189 Gain on bank acquisition transaction - - - 20,255 Gain (loss) on securities transactions, net (452) 341 (98) 293 Gain (loss) on sale of other real estate (1,182) 109 (3,559) 63 Other 897 554 2,770 981 --- --- ----- --- Total noninterest income (115) 1,622 300 22,781 ---- ----- --- ------ Noninterest expense Salaries and employee benefits 4,805 5,028 9,936 9,454 Occupancy expenses 713 554 1,452 1,134 Equipment expenses 363 419 775 762 Legal fees 96 305 142 555 Professional fees 743 456 1,077 1,156 FDIC assessment 613 744 1,218 874 Data processing fees 572 732 1,078 1,474 Amortization of intangibles 566 654 1,131 1,110 Impairment of goodwill 5,727 24,032 5,727 24,032 Other operating expenses 1,977 1,592 3,499 3,353 ----- ----- ----- ----- Total noninterest expense 16,175 34,516 26,035 43,904 ------ ------ ------ ------ Loss before income taxes (27,459) (23,366) (31,888) (8,369) Income tax expense (benefit) (7,843) (14) (9,508) 4,853 ------ --- ------ ----- Net loss $(19,616) $(23,352) $(22,380) $(13,222) Dividends accrued on preferred stock 221 220 442 438 Accretion of discount on preferred stock 49 45 97 88 --- --- --- --- Net loss available to common stockholders $(19,886) $(23,617) $(22,919) $(13,748) ======== ======== ======== ======== Net income loss per share --basic $(0.93) $(1.10) $(1.07) $(0.64) ====== ====== ====== ====== Net income loss per share --diluted $(0.93) $(1.10) $(1.07) $(0.64) ====== ====== ====== ====== Weighted average number of shares outstanding basic 21,468 21,468 21,468 21,468 diluted 21,468 21,468 21,468 21,468 COMMUNITY BANKERS TRUST CORPORATION NET INTEREST MARGIN ANALYSIS AVERAGE BALANCE SHEETS
The following tables set forth, for each category of interest-earning assets and interest bearing liabilities, the average amounts outstanding, the interest earned or paid on such amounts, and the average rate earned or paid for the quarters ended June 30, 2010 and 2009. The tables also set forth the average rate paid on total interest bearing liabilities, and the net interest margin on average total interest-earning assets for the same periods. Except as indicated in the footnotes, no tax equivalent adjustments were made and all average balances are daily average balances. Any non-accruing loans have been included in the table as loans carrying a zero yield.
Three months ended June 30, 2010 ---------------------------- Average Interest Average Balance Income/ Rates Earned/ (dollars in thousands) Sheet Expense Paid ---------------------- ----- ------- -------- ASSETS: Loans non covered, including fees $575,457 $8,478 5.89% FDIC covered loans, including fees 138,675 3,386 9.76% ------- ----- ---- Total loans 714,132 11,864 6.65% Interest bearing bank balances 16,885 24 0.56% Federal funds sold 6,521 3 0.18% Securities (taxable) 217,695 2,162 3.97% Securities (tax exempt)(1) 91,206 1,333 5.84% ------ ----- ---- Total earning assets 1,046,439 15,384 5.88% Allowance for loan losses (23,358) Non-earning assets 196,591 ------- Total assets $1,219,672 ========== LIABILITIES AND STOCKHOLDERS' EQUITY Demand - interest bearing $227,433 $393 0.69% Savings 62,386 87 0.56% Time deposits 691,278 4,006 2.32% ------- ----- ---- Total deposits 981,097 4,486 1.83% Federal funds purchased 106 1 0.53% FHLB and other borrowings 41,124 333 3.25% ------ --- ---- Total interest bearing liabilities 1,022,327 4,821 1.89% Noninterest bearing deposits 64,070 Other liabilities 6,646 ----- Total liabilities 1,093,043 Stockholders' equity 126,629 ------- Total liabilities and stockholders' equity $1,219,672 ========== Net interest earnings $10,564 ======= Net interest spread 3.99% ==== Net interest margin 4.04% ==== Three months ended June 30, 2009 ---------------------------- Average Interest Average Balance Income/ Rates Earned/ (dollars in thousands) Sheet Expense Paid ---------------------- ----- ------- -------- ASSETS: Loans non covered, including fees $548,577 $8,959 6.53% FDIC covered loans, including fees 183,400 4,278 9.33% ------- ----- ---- Total loans 731,977 13,237 7.23% Interest bearing bank balances 19,741 81 1.64% Federal funds sold 24,142 12 0.20% Securities (taxable) 262,006 2,607 3.98% Securities (tax exempt)(1) 83,505 1,242 5.95% ------ ----- ---- Total earning assets 1,121,371 17,179 6.13% Allowance for loan losses (11,009) Non-earning assets 207,266 ------- Total assets $1,317,628 ========== LIABILITIES AND STOCKHOLDERS' EQUITY Demand - interest bearing $203,965 $485 0.95% Savings 57,364 114 0.79% Time deposits 763,276 5,700 2.99% ------- ----- ---- Total deposits 1,024,605 6,299 2.46% Federal funds purchased 1,832 4 0.87% FHLB and other borrowings 40,081 382 3.81% ------ --- ---- Total interest bearing liabilities 1,066,518 6,685 2.51% Noninterest bearing deposits 61,421 Other liabilities 26,387 ------ Total liabilities 1,154,326 Stockholders' equity 163,302 ------- Total liabilities and stockholders' equity $1,317,628 ========== Net interest earnings $10,494 ======= Net interest spread 3.62% ==== Net interest margin 3.74% ==== (1)Income and yields are reported on a tax equivalent basis assuming a federal tax rate of 34%. Non-GAAP Financial Measures)
This press release contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). Common tangible book value equals total stockholders' 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.
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. The following tables reconcile these non-GAAP measures from their respective GAAP basis measures.
(dollars in thousands, except per common share data) Calculation of Common Tangible Book Value 6/30/2010 12/31/2009 --------- ---------- Total Stockholder's Equity 109,108,000 131,594,000 Preferred Stock 17,960,000 17,863,000 Goodwill - 5,727,000 Core deposit intangible 15,949,000 17,080,000 ---------- ---------- Common Tangible Book Value $75,199,000 $90,924,000 Shares Outstanding 21,468,455 21,468,455 Common Tangible Book Value Per Share $3.50 $4.24 ===== ===== Stock Price at Period End $2.24 $3.21 Price/Common Tangible Book 63.9% 75.8% Total Assets 1,203,894,000 1,226,723,000 Preferred Stock (net) 17,960,000 17,863,000 Goodwill - 5,727,000 Core deposit intangible 15,949,000 17,080,000 Common Tangible Assets 1,169,985,000 1,186,053,000 Common Tangible Book 75,199,000 90,924,000 CTE/CTA 6.43% 7.67%
Community Bankers Trust Corporation
CONTACT: Bruce E. Thomas, Executive Vice President/Chief Financial
Officer, Community Bankers Trust Corporation, +1-804-443-4343
Web Site: http://www.cbtrustcorp.com/
