Exhibit 99.1

 

Community Bankers Trust Corporation Reports Results for Second Quarter 2014

 

Quarterly and Year to Date Net Income Increased 7.0% and 17.5% from the Prior Year

Net Income Available to Common Shareholders Increased 34.8% for the Six-Month Period

 

Conference Call on Friday, July 25, 2014, at 10:00 a.m. Eastern Time

 

Richmond, VA, July 25, 2014 - 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 2014.

 

OPERATING HIGHLIGHTS

 

·

Non-covered loans grew by $33.6 million, or 5.7%, during the second quarter of 2014.

·

Asset quality remained solid, and there was no provision for loan losses. The ratio of the allowance for loan losses to total non-covered loans remained sound at 1.62% as of June 30, 2014.

·

Other real estate owned (OREO) expense equaled $100,000 for the second quarter of 2014, a decrease of $402,000 or 80.1%, as compared to the same quarter of the prior year.

·

During the second quarter, the Company opened two new branches: one in Annapolis, Maryland and another in Richmond, Virginia at the site of the Company’s new corporate headquarters.

·

The Company launched a full scale wholesale mortgage operation.

 

Financial Highlights

 

·

Net income increased 7.0% to $1.7 million for the second quarter of 2014, as compared with the second quarter of the prior year.

·

Net income increased 17.5% to $3.4 million for the first six months of 2014, as compared with the first half of the prior year.

·

Fully diluted earnings per common share were $0.07 for the second quarter of 2014 compared with $0.06 for the second quarter of 2013.

·

The Company repaid the remaining balance of $10,680,000 on its TARP preferred stock from the U.S. Department of the Treasury (“Treasury”). The Company funded the repurchase through a third-party loan and believes the repayment will result in total expected after-tax savings of at least $750,000.

·

In addition, the Company repurchased the warrant associated with the TARP investment, paying the Treasury $780,000 for the repurchase.

 

MANAGEMENT COMMENTS

 

Rex L. Smith, III, President and Chief Executive Officer of the Company and the Bank, stated, “We are very pleased with our accomplishments in the second quarter, as we reported strong year-over-year improvement in many financial metrics. We experienced strong loan growth, with new loans increasing by $33.6 million for the quarter, an annualized growth rate of 22.8%. The outstanding loan growth is largely due to the continued re-focus of our Company on traditional lending in growing markets where our brand is respected, along with providing direct, local service by our market operators that larger national banks cannot replicate.”

 

Mr. Smith concluded, “While we feel that the second quarter was outstanding in many aspects, we strive to do more and continue to explore ways to expand the Company’s presence within our geographic footprint. We opened a new branch in Annapolis, Maryland as well as moved into our new corporate headquarters in Richmond, Virginia, which now has a branch location. We successfully exited TARP by repaying the balance on our preferred stock as well as on the associated warrant. Lastly, we opened a full scale wholesale mortgage operation, which we relocated into the same building as our headquarters. We will begin to recognize revenue from this operation in the third quarter and fully expect it to positively impact the Company’s noninterest income. Our management team remains focused on increasing earnings per share and maximizing shareholder value.”

 

RESULTS OF OPERATIONS

 

Net income was $1.7 million for the second quarter of 2014, compared with $1.7 million in the first quarter of 2014 and $1.6 million in the second quarter of 2013. Net income available to common shareholders was $1.5 million in the second quarter of 2014 compared with $1.7 million in the first quarter of 2014 and $1.3 million in the second quarter of 2013.

 

Earnings per common share, basic and fully diluted, were $0.07 per share for the second quarter of 2014 compared with $0.08 per share for the first quarter of 2014 and $0.06 per share for the second quarter of 2013.

 

 

Comparing the first two quarters of 2014, net interest income increased for the second quarter by $449,000, or 4.4%, due to robust non-covered loan growth coupled with strong covered loan income. Noninterest income declined $331,000, or 25.4%, on a linked quarter basis due to a reduction in securities gains of $331,000 from quarter to quarter. Noninterest expenses increased quarter over quarter by $182,000 or 2.0%. This was partially the result of an increase in staffing related to the Company’s new wholesale mortgage operation, two new branches, as well as an increase in other operating expenses.

 

The Company reported a year-over-year reduction in noninterest expenses of $399,000, or 4.1%, for the second quarter. The most notable decline was evidenced in OREO expense, which equaled $100,000 for the second quarter of 2014, declining $402,000 or 80.1%, from the same quarter in 2013. The reduction in noninterest expenses more than offset a $368,000, or 27.5%, decline in noninterest income. Virtually all components of noninterest income were lower in the second quarter of 2014 versus the second quarter of 2013. The largest of which were a decrease of $140,000 in service charge income, which was lower to a large extent due to the sale of Georgia deposits in November 2013, and a decrease of $106,000 in securities gains.

 

Net income was $3.4 million for the six months ended June 30, 2014 compared with $2.9 million for the first half of 2013. The $513,000 or 17.5% improvement year over year was primarily driven by a $933,000 reduction in noninterest expenses, $856,000 of which came from lower OREO expenses. Net income available to common shareholders was $3.2 million in the first half of 2014 compared with $2.4 million in the first half of 2013, an increase of 34.8%. Earnings per common share, basic and fully diluted, were $0.15 per share and $0.11 per share for the respective time frame.

 

The following table presents summary income statements for the three and six months ended June 30, 2014 and June 30, 2013, respectively.

 

SUMMARY INCOME STATEMENT
(Dollars in thousands)		For the three months ended								For the six months ended
		June 30, 2014				June 30, 2013				June 30, 2014				June 30, 2013
Interest income		$	12,455			$	12,491			$	24,334			$	24,657
Interest expense			1,697				1,791				3,267				3,685
Net interest income			10,758				10,700				21,067				20,972
Provision for loan losses			-				-				-				-
Net interest income after provision
for loan losses			10,758				10,700				21,067				20,972
Noninterest income			970				1,338				2,271				2,664
Noninterest expense			9,359				9,758				18,536				19,469
Net income before income taxes			2,369				2,280				4,802				4,167
Income tax expense			649				673				1,358				1,236
Net income			1,720				1,607				3,444				2,931
Dividends on preferred stock			182				221				247				442
Accretion of preferred stock discount			-				59				-				117
Net income per share available
to common shareholders		$	1,538			$	1,327			$	3,197			$	2,372
EPS Basic		$	0.07			$	0.06			$	0.15			$	0.11
EPS Diluted		$	0.07			$	0.06			$	0.15			$	0.11

 

Interest Income

 

Interest income was $12.5 million for the second quarter of 2014, increasing $576,000, or 4.8%, from the first quarter of 2014. Interest and fees on non-covered loans increased $240,000, or 3.4%, on a linked quarter basis while FDIC covered loan income increased $303,000 or 10.2%. Solid loan growth during the quarter augmented loan interest income on the non-covered loan portfolio, while the increase in income on covered loans was the direct result of payments made on an acquisition, development, and construction loan and a consumer loan that were treated as cash income, as these pools had previously been written down to a zero carrying value.

 

 

A slight shift in earning assets mix aided interest income during the second quarter of 2014 compared with the first quarter of 2014. Average non-covered loan balances increased $15.5 million during the second quarter versus the first quarter of 2014, while non-covered loan yields declined only 1 basis point quarter over quarter. Covered loan balances continued to amortize slightly, however, the yield on this portfolio increased 312 basis points over the first quarter of 2014 as a result of cash payments mentioned previously. Average securities balances were $7.3 million lower than the first quarter of 2014, yet tax equivalent yields on securities increased from 2.59% to 2.69% during the second quarter of this year. The improvement in the securities yield was the direct result of management’s concerted effort to sell part of its floating rate SBA portfolio to mitigate ongoing premium acceleration.

 

Interest income declined nominally by $36,000, or 0.3%, when comparing the second quarters of 2014 and 2013. Interest income on the non-covered loan portfolio declined $331,000, or 4.3%, during this time frame. While average balances on non-covered loans increased $28.1 million, the yield declined 45 basis points from the second quarter of 2013 to the second quarter of 2014. Continued competitive pricing for new loans precipitated this decline. Interest and fees on FDIC covered loans increased $519,000 when comparing the second quarter of 2014 to the second quarter of 2013. Cash payments on loans related to pools that had previously been written down to a zero carrying value equaled $706,000, while there were no cash payments on these pools in the second quarter of 2013. Interest income on securities declined $228,000 on a tax equivalent basis from the second quarter of 2013 to the second quarter of 2014. Securities income was affected by a $21.4 million decline in average balances as well as an 11 basis point decline in yield when comparing the second quarters of 2014 and 2013, respectively.

 

For the six months ended June 30, 2014, interest income of $24.3 million represented a decrease of $323,000, or 1.3%, from interest income of $24.7 million for the same period in 2013. Interest and fees on non-covered loans was $14.3 million for the six months ended June 30, 2014 compared with $15.1 million for the same period in 2013. Despite a $21.6 million increase in average non-covered loan balances, the yield earned on these balances declined from 5.25% for the first six months of 2013 to 4.79% for the first six months of 2014. Interest and fees on FDIC covered loans increased $821,000 when comparing the six months ended June 30, 2014 to the same period in 2013. Cash payments on loans related to pools that were written down to a zero carrying value equaled $1.1 million, while $104,000 in cash payments on these pools were received in the first half of 2013. Interest and dividends on securities declined $363,000 when comparing the first six months of 2013 to the same period in 2014 and was $3.7 million for the first six months of 2014 compared with $4.1 million for the same period in 2013. The tax equivalent yield on securities was 2.64% for the first half of 2014, a nominal 6 basis point decline from the same period in 2013.

 

Interest Expense

 

Interest expense was $1.7 million for the second quarter of 2014, increasing $127,000, or 8.1%, from the first quarter of 2014. The cost of interest bearing deposits remained virtually unchanged, at 0.70% for the second quarter of 2014 versus 0.69% for the first quarter of 2014, yet average interest bearing deposits balances increased $13.4 million on a linked quarter basis. During the second quarter, the Company incurred $10.7 million in long-term debt to retire its outstanding TARP preferred stock. The interest rate on the debt is 3-month LIBOR plus 350 basis points. Management anticipates significant after tax savings as the loan interest rate, 3.73% for the second quarter, is tax deductible, while the dividend rate on the TARP preferred stock was 9.0%, and was not deductible for tax purposes. The cost of the new long-term debt was $81,000 for the second quarter of 2014.

 

Interest expense declined $94,000, or 5.2%, from the second quarter of 2013 to the second quarter of 2014. Interest expense related to interest bearing deposits declined $147,000 or 9.2%. The average balances in these deposits declined $24.4 million year over year, which was primarily the result of the sale of the Georgia branches. Meanwhile, the Bank increased its level of FHLB borrowings to fund the sale. Over the same time frame, average FHLB advances increased $27.3 million, yet the expense associated with the borrowings declined $27,000. Lower advance rates more than offset the increased volume as the cost of these borrowings improved 61 basis points over this time frame.

 

For the six months ended June 30, 2014, total interest expense declined $418,000, or 11.3%, and was $3.3 million compared with $3.7 million for the same period in 2013. The cost of interest bearing deposits declined $440,000, or 13.3%, from $3.3 million to $2.9 million when comparing the first six months of 2013 and 2014, respectively. Correspondingly, the rate paid on average total interest bearing deposits declined from 0.77% to 0.70% during this period. The cost of FHLB and other borrowings declined for the first six months of 2014 to 0.80% compared with 1.43% for the same period in 2013. With the interest expense improvement, as detailed previously, the cost of total interest bearing liabilities decreased from 0.81% for the first six months of 2013 to 0.72% for the same period in 2014.

 

Net Interest Income

 

Net interest income was $10.8 million for the quarter ended June 30, 2014, compared with $10.3 million for the quarter ended March 31, 2014.  This represents an increase of $449,000, or 4.4%.  The increase in net interest income on a linked quarter basis is the direct result of the factors noted above in the Interest Income section. The tax equivalent net interest margin increased 7 basis points from 4.28% in the first quarter of 2014 to 4.35% in the second quarter of 2014. Likewise, the interest spread increased from 4.23% to 4.29% on a linked quarter basis. 

 

 

Net interest income increased a modest $58,000, or 0.54%, from the second quarter of 2013 to the second quarter of 2014. The Company's net interest margin improved 3 basis points over this time frame. The Company was able to maintain virtually the same yield on its earning asset base at 5.03% while lowering its cost of funding 5 basis points to 0.74% for the quarter ended June 30, 2014. As mentioned in the Interest Expense section above, this was the result of improved funding costs related to FHLB advances.

 

For the first half of 2014, net interest income increased $95,000, or 0.45%, from the first six months of 2013. The net interest margin improved from 4.25% for the first six months of 2013 to 4.32% for the same period in 2014. Lower average interest bearing liabilities coupled with a 9 basis point improvement in the Company’s overall cost of funds aided the improvement in the margin.

 

The following table compares the Company’s net interest margin, on a tax-equivalent basis, for the three months ended June 30, 2014, June 30, 2013 and March 31, 2014 and for the six months ended June 30, 2014 and June 30, 2013.

 

NET INTEREST MARGIN

(Dollars in thousands)		For the three months ended
		June 30, 2014				June 30, 2013				March 31, 2014
Average interest earning assets		$	999,963			$	1,000,921			$	984,026
Interest income		$	12,455			$	12,491			$	11,879
Interest income - tax-equivalent		$	12,542			$	12,575			$	11,960
Yield on interest earning assets			5.03	%			5.04	%			4.93	%
Average interest bearing liabilities		$	924,910			$	914,998			$	904,639
Interest expense		$	1,697			$	1,791			$	1,570
Cost of interest bearing liabilities			0.74	%			0.79	%			0.70	%
Net interest income		$	10,758			$	10,700			$	10,309
Net interest income - tax-equivalent		$	10,845			$	10,784			$	10,390
Interest spread			4.29	%			4.25	%			4.23	%
Net interest margin			4.35	%			4.32	%			4.28	%

 

		For the six months ended
		June 30, 2014				June 30, 2013
Average interest earning assets		$	992,039			$	1,003,709
Interest income		$	24,334			$	24,657
Interest income - tax-equivalent		$	24,501			$	24,818
Yield on interest earning assets			4.98	%			4.99	%
Average interest bearing liabilities		$	914,831			$	922,200
Interest expense		$	3,267			$	3,685
Cost of interest bearing liabilities			0.72	%			0.81	%
Net interest income		$	21,067			$	20,972
Net interest income - tax-equivalent		$	21,234			$	21,133
Interest spread			4.26	%			4.18	%
Net interest margin			4.32	%			4.25	%

 

Provision for Loan Losses

 

The Company did not have a provision for loan losses in 2013 or in the first and second quarters of 2014 with respect to either its non-covered loan portfolio or its FDIC covered loan portfolio.  For the non-covered loan portfolio, this was the direct result of continued improvement in loan quality. The Company’s level of classified and “impaired” loans continues to remain low, as discussed below.

 

 

Noninterest Income

 

Noninterest income was $970,000 for the second quarter of 2014 compared with $1.3 million for the first quarter of 2014.  The decline in noninterest income quarter over quarter was the direct result of a reduction in securities gains. Gains on securities totaled $24,000 during the second quarter of 2014, a $331,000 decline from $355,000 in gains in the first quarter of 2014. Service charge income improved $72,000, or 14.7%, from the first quarter of 2014 while other operating income and gains on the sales of loans declined $52,000 and $21,000, respectively. $39,000 of the decline in other operating income was the result of a gain taken on the sale of a covered OREO property during the quarter. This amount represents the 80% reimbursement from the FDIC, while the gain is shown net of OREO expenses in the noninterest expense section of the income statement.

 

Noninterest income declined $368,000, or 27.5%, from the second quarter of 2013 to the second quarter of 2014. Service charge income declined $140,000, or 20.0%, over the same time frame to equal $561,000 for the second quarter. This decline was driven by the reduction of service charge income from the Georgia branches, which were sold during the fourth quarter of 2013. Securities gains in the second quarter of 2013 were $130,000 versus the $24,000 for the second quarter of 2014. Other operating income declined $143,000, or 46.4%, from the quarter ended June 30, 2013 to June 30, 2014. Lower mortgage fee income coupled with the OREO sale noted above were the key components of this decline.

 

For the six months ended June 30, 2014, noninterest income totaled $2.3 million, which was a $393,000, or 14.8%, decline from the first six months of 2013. The decline year over year was due to a $314,000 reduction in service charge income related to the sale of the Georgia branches.

 

Noninterest Expenses

 

Noninterest expenses totaled $9.4 million for the three months ended June 30, 2014 and $9.2 million for the quarter ended March 31, 2014, an increase of $182,000, or 2.0%. Salaries and benefits increased $105,000, or 2.7%, from the first quarter of 2014 to equal $4.0 million for the second quarter of 2014. While other operating expenses increased during the second quarter of 2014 from the first quarter by $215,000, this was mostly offset by a reduction in other real estate expenses of $183,000 or 64.7%. Several components of other operating expenses increased in the second quarter of 2014 versus the first quarter of 2014, including increases to advertising expenses of $34,000 or 41.5%, audit fees of $53,000 or 63.1%, credit expenses of $42,000 or 42.5%, and supplies of $57,000 or 63.3%. Excluding audit fees and credit expenses, the majority of these increases was attributable to the relocation to the new corporate headquarters in April of this year and the addition of a branch location in Annapolis, Maryland. Lower OREO expenses for the quarter were the result of new rental income received on a property in the second quarter coupled with a lower level of write-downs in the second quarter.

 

Noninterest expenses declined $399,000, or 4.1%, when comparing the second quarter of 2013 to the same period in 2014. The single largest decline was evidenced in OREO expenses. These expenses declined from $502,000 in the second quarter of 2013 to $100,000 in the second quarter of 2014. The Company benefitted from an $114,000, or 7.2%, decline in the indemnification asset amortization from the second quarter of 2013 to the second quarter of 2014. The two most significant increases in noninterest expenses evidenced from the second quarter of 2013 to the second quarter of 2014 were in other operating expenses and salaries and wages, which partially mitigated the improvement noted above. Salaries and wages increased $127,000, or 3.3%, from the second quarter of 2013 to the second quarter of 2014. This is the result of increased staffing for the wholesale mortgage operation coupled with normal salary raises year over year. Other operating expenses increased $226,000, or 17.6%, over the same time frame. Bank franchise tax, credit expenses and external audit expenses increased $71,000, $79,000, and $54,000, respectively. These expenses collectively resulted in the majority of the increase in other operating expenses.

 

Noninterest expenses declined $933,000, or 4.8%, when comparing the first six months 2013 and 2014. The majority of the decline was evidenced in four categories: OREO expenses, data processing fees, amortization of intangibles, and FDIC indemnification asset amortization. OREO expenses declined $856,000, or 69.1%, during the first six months of 2014 versus the same time frame in 2013, as smaller write-downs were recognized in the first half of 2014. Data processing fees were $131,000 lower in the first half of 2014 compared with the first six months of 2013, and intangible amortization was $177,000, or 15.6%, lower over the same time frame. These expense reductions were due to the sale of the Georgia branches. Lastly, the Company benefitted from $117,000, or 3.8%, in decline in indemnification asset amortization for the first half of 2014 versus the first half of 2013.

 

Income Taxes

 

Income tax expense was $649,000 for the three months ended June 30, 2014, compared with income tax expense of $709,000 and $673,000 for the first quarter of 2014 and second quarter of 2013, respectively. Income tax expense was $1.4 million versus $1.2 million for the first six months of 2014 and 2013, respectively.

 

 

FINANCIAL CONDITION

 

During the first six months of 2014, total assets increased $25.3 million to $1.114 billion at June 30, 2014. Total assets declined $9.7 million, or 0.9%, over the past year from $1.125 billion at June 30, 2013. Total loans were $698.3 million at June 30, 2014, increasing $28.8 million since December 31, 2013 and $31.0 million since June 30, 2013.  Total non-covered loans were $632.3 million at June 30, 2014 and $596.1 million at December 31, 2013. The June 30, 2014 totals include $5.2 million of loans formerly categorized under the FDIC loss share arrangement now categorized as non-covered loans (the “PCI loans). While these loans no longer have FDIC loss guaranties, they are subject to SOP 03-3 accounting rules; thus, they will not receive consideration under the loan loss reserve under the normal non-covered portfolio. Excluding the $5.2 million mentioned above, non-covered loans would have increased $33.6 million, or 5.7%, in the second quarter of 2014 and $31.0 million, or 5.2%, since December 31, 2013.

 

The majority of the loan growth as evidenced by the chart below has been in the commercial real estate category. Commercial real estate loans grew $28.0 million, or 11.3%, since year end.

 

The following table shows the composition of the Company’s non-covered loan portfolio at June 30, 2014, December 31, 2013, and June 30, 2013.

 

NON-COVERED LOANS
(Dollars in thousands)		June 30, 2014								December 31, 2013								June 30, 2013
		Amount				% of Non- Covered Loans				Amount				% of Non- Covered Loans				Amount				% of Non- Covered Loans
Mortgage loans on real estate:
Residential 1-4 family		$	156,173				24.69	%		$	144,382				24.21	%		$	141,292				24.03	%
Commercial			275,286				43.52	%			247,284				41.47	%			244,839				41.65	%
Construction and land development			59,385				9.39	%			55,278				9.27	%			61,333				10.43	%
Second mortgages			6,459				1.02	%			6,854				1.15	%			7,002				1.19	%
Multifamily			33,898				5.36	%			35,774				6.00	%			37,587				6.39	%
Agriculture			8,127				1.28	%			9,565				1.60	%			8,977				1.53	%
Total real estate loans			539,328				85.26	%			499,137				83.70	%			501,030				85.23	%
Commercial loans			86,446				13.67	%			90,142				15.12	%			79,279				13.49	%
Consumer installment loans			5,379				0.85	%			5,623				0.94	%			6,070				1.03	%
All other loans			1,390				0.22	%			1,435				0.24	%			1,482				0.25	%
Gross loans			632,543				100.00	%			596,337				100.00	%			587,861				100.00	%
Allowance for loan losses			(10,254	)							(10,444	)							(11,523	)
Net unearned income/unamortized premium on loans			(200	)							(164	)							(104	)
Non-covered loans, net of unearned income		$	622,089							$	585,729							$	575,934

 

The Company’s securities portfolio, excluding equity securities, declined $1.4 million, or 0.5%, from $294.3 million at December 31, 2013, to $293.0 million at June 30, 2014. Realized gains of $379,000 occurred during the first six months of 2014 through sales and call activity. During the first quarter of 2014, the SBA floating rate portion of the investment portfolio evidenced some unforeseen pre-payment activity, which resulted in the acceleration of unamortized premiums paid on these securities. Subsequently, management sold additional SBA floating rate securities to mitigate the pre-payment anomaly and sold some longer-term municipal securities. This was a strategic decision to mitigate duration risk in the municipal portfolio. During the second quarter, management opted to diversify some of the portfolio, purchasing AAA-rated household name corporate bonds.

 

The Company had cash and cash equivalents of $24.9 million and $23.8 million at June 30, 2014 and December 31, 2013, respectively. Cash and cash equivalents were $25.3 million at June 30, 2013. There were $2.5 million of federal funds purchased at June 30, 2014 and none at December 31, 2013, while there were no securities sold under agreement to repurchase (repos) at June 30, 2014 versus $6.0 million in repos at December 31, 2013.

 

 

 

The following table shows the composition of the Company’s securities portfolio, excluding equity securities, at June 30, 2014, December 31, 2013 and June 30, 2013.

 

SECURITIES PORTFOLIO
(Dollars in thousands)		June 30, 2014								December 31, 2013								June 30, 2013
		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		$	87,032				85,910			$	99,789			$	98,987			$	113,390			$	113,205
U.S. Government sponsored agencies			-				-				487				486				-				-
State, county and municipal			136,708				137,286				138,884				134,096				135,227				133,435
Corporate and other bonds			12,104				12,092				6,369				6,349				6,963				7,002
Mortgage backed securities - U.S. Government agencies			2,598				2,519				3,608				3,439				11,810				11,887
Mortgage backed securities - U.S. Government sponsored agencies			29,004				28,966				22,631				22,420				12,580				12,596
Total securities available for sale		$	267,446				266,773			$	271,768			$	265,777			$	279,970			$	278,125

 

		June 30, 2014								December 31, 2013								June 30, 2013
		Amortized Cost				Fair Value				Amortized Cost				Fair Value				Amortized Cost				Fair Value
Securities Held to Maturity
State, county and municipal		$	10,364				11,078			$	9,385			$	10,103			$	11,812			$	12,602
Mortgage backed securities - U.S. Government agencies			5,504				5,828				6,604				7,002				7,832				8,313
Mortgage backed securities - U.S. Government agencies			10,315				10,876				12,574				13,200				16,103				16,878
Total securities held to maturity		$	26,183				27,782			$	28,563			$	30,305			$	35,747			$	37,793

 

Interest bearing deposits at March 31, 2014 were $836.1 million, an increase of $13.9 million from December 31, 2013. NOW and Savings account balances increased $12.4 million and $2.2 million, or 12.2% and 3.0%, respectively, since December 31, 2013. While time deposit account balances increased only $790,000 during the first half of 2014, the Company allowed $29.8 million in brokered time deposits to mature. This brokered funding was used, in part, to fund the sale of the Georgia branches, and the corresponding retail generation was precipitated by two promotions that management ran during the first half of 2014. This was a strategic initiative to retain core retail funding while not hampering earnings.

 

FHLB advances were $76.8 million at June 30, 2014, compared with $77.1 million at December 31, 2013 and $49.5 million at June 30, 2013. The Company increased the level of FHLB advances due to the low cost nature of this funding source and to assist with funding the sale of the Georgia franchise in the fourth quarter of 2013. Long term debt totaled $10.7 million at June 30, 2014. This borrowing was entered into during April 2014, and the proceeds were used to redeem the Company’s remaining outstanding TARP preferred stock.

 

 

The following table compares the mix of interest bearing deposits for June 30, 2014, December 31, 2013 and June 30, 2013.

 

INTEREST BEARING DEPOSITS
(Dollars in thousands)
		June 30, 2014				December 31, 2013				June 30, 2013
NOW		$	114,530			$	102,111			$	135,765
MMDA			92,602				94,170				110,976
Savings			77,381				75,159				83,562
Time deposits less than $100,000			243,509				235,482				279,972
Time deposits $100,000 and over			308,050				315,287				253,937
Total interest bearing deposits		$	836,072			$	822,209			$	864,212

 

Shareholders’ equity was $102.1 million at June 30, 2014 and $106.7 million at December 31, 2013. While $11.5 million in equity was redeemed with respect to the TARP preferred stock and the associated warrant, shareholders’ equity declined only $4.6 million or 4.3%. The partial offset was earnings retention as well as a $3.5 million improvement in other comprehensive income related to the unrealized gains and losses in the investment portfolio.

 

Asset Quality – non-covered assets

 

Nonaccrual loans were $11.2 million at June 30, 2014, declining from $12.1 million at December 31, 2013 and $15.6 million at June 30, 2013. The $922,000 reduction in nonaccrual loans since December 31, 2013 was the net result of $2.1 million in additions to nonaccrual loans and $3.0 million in reductions.  With respect to the reductions to nonaccrual loans, $989,000 were returned to accruing status, $529,000 were charged off, $634,000 was moved to OREO, and $823,000 were the result of payments to existing credits. 

 

Total non-performing assets totaled $17.6 million at June 30, 2014, declining $776,000 since December 31, 2013. The decline in non-performing assets was partially offset by a $146,000 increase in non-covered OREO balances from year end 2013. There were net charge-offs of $254,000 in the second quarter of 2014 compared with $34,000 in the first quarter of 2014 and $735,000 in the second quarter of 2013.

 

The allowance for loan losses equaled 90.8% of non-covered nonaccrual loans at June 30, 2014 compared with 82.3% at March 31, 2014 and 73.7% at June 30, 2013. The ratio of the allowance for loan losses to total nonperforming assets was 57.8% at June 30, 2014, compared with 57.6% at March 31, 2014 and 49.6% at June 30, 2013.  The ratio of nonperforming assets to loans and other real estate owned continued to decline. The ratio was 2.77% at June 30, 2014 versus 3.02% at March 31, 2014, and 3.90% at June 30, 2013.

 

The following table reconciles the activity in the Company’s non-covered allowance for loan losses excluding PCI loans, by quarter, for the past five quarters.

 

CREDIT QUALITY
(Dollars in thousands)		2014								2013
		Second				First				Fourth				Third				Second
		Quarter				Quarter				Quarter				Quarter				Quarter
Allowance for loan losses:
Beginning of period		$	10,410			$	10,444			$	10,653			$	11,523			$	12,258
Provision for loan losses			-				-				-				-				-
Charge-offs			(446	)			(152	)			(263	)			(1,018	)			(1,302	)
Recoveries			192				118				54				148				567
Net (charge-offs) recovery			(254	)			(34	)			(209	)			(870	)			(735	)
End of period		$	10,156			$	10,410			$	10,444			$	10,653			$	11,523

 

 

The following table sets forth selected asset quality data, excluding FDIC covered assets, and ratios for the dates indicated:

 

ASSET QUALITY (NON-COVERED)
(Dollars in thousands)		2014								2013
		June 30				March 31				December 31				September 30				June 30
Non-accruing loans		$	11,183			$	12,645			$	12,105			$	13,044			$	15,644
Loans past due over 90 days and accruing interest			-				-				-				-				-
Total nonperforming non-covered loans			11,183				12,645				12,105				13,044				15,644
Other real estate owned non-covered			6,390				5,439				6,244				8,496				7,593
Total nonperforming non-covered assets		$	17,573			$	18,084			$	18,349			$	21,540			$	23,237
Allowance for loan losses to loans			1.62	%			1.75	%			1.75	%			1.87	%			1.96	%
Allowance for loan losses to nonperforming assets			57.79	%			57.56	%			56.92	%			49.45	%			49.59	%
Allowance for loan losses to nonaccrual loans			90.82	%			82.33	%			86.28	%			81.67	%			73.66	%
Nonperforming assets to loans and other real estate			2.77	%			3.02	%			3.05	%			3.73	%			3.90	%
Net charge-offs for quarter to average loans, annualized			0.17	%			0.02	%			0.14	%			0.59	%			0.50	%

 

A further breakout of nonaccrual loans, excluding PCI and covered loans, at June 30, 2014, December 31, 2013 and June 30, 2013 is below:

 

NON-COVERED NONACCRUAL LOANS

 

(Dollars in thousands)		June 30, 2014								December 31, 2013								June 30, 2013
		Amount				% of Non- Covered Loans				Amount				% of Non- Covered Loans				Amount				% of Non- Covered Loans
Mortgage loans on real estate:
Residential 1-4 family		$	4,617				0.73	%		$	4,229				0.71	%		$	5,232				0.89	%
Commercial			874				0.14	%			1,382				0.23	%			1,421				0.24	%
Construction and land development			5,337				0.85	%			5,882				0.99	%			8,465				1.44	%
Second mortgages			223				0.03	%			225				0.04	%			129				0.02	%
Agriculture			-				-				205				0.03	%			223				0.04	%
Total real estate loans			11,051				1.75	%			11,923				2.00	%			15,470				2.63	%
Commercial loans			36				0.01	%			127				0.02	%			114				0.02	%
Consumer installment loans			96				0.02	%			55				0.01	%			60				0.01	%
All other loans			-				-				-				-				-				-
Gross loans		$	11,183				1.78	%		$	12,105				2.03	%		$	15,644				2.66	%

 

Capital Requirements

 

The Company’s ratio of total risk-based capital was 14.7% at June 30, 2014 compared with 16.8% at December 31, 2013. The tier 1 risk-based capital ratio was 13.5% at June 30, 2014 and 15.6% at December 31, 2013. The Company’s tier 1 leverage ratio was 9.1% at June 30, 2014 and 9.5% at December 31, 2013.  All capital ratios exceed regulatory minimums to be considered well capitalized. The decline in the ratios reflects the repayment of the TARP investment and a reduction this quarter in 0% risk-weighted assets.

 

 

Earnings Conference Call and Webcast

 

The Company will host a conference call for the financial community on Friday, July 25, 2014, at 10:00 a.m. Eastern Time to discuss the second quarter and year-to-date 2014 financial results. The public is invited to listen to this conference call by dialing 877-870-4263 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 July 25, 2014, until 9:00 a.m. Eastern Time on August 4, 2014. The replay will be available by dialing 877-344-7529 and entering access code 10049564 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 21 full-service offices, 14 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; assumptions and estimates that underlie the accounting for loan pools under the shared-loss agreements; 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, 2013 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.

 

Contact: Bruce E. Thomas

Executive Vice President/Chief Financial Officer

Community Bankers Trust Corporation

804-934-9999 

 

 

 

Consolidated Balance Sheets
Unaudited Condensed
(Dollars in thousands)
		June 30, 2014				December 31, 2013				June 30, 2013
Assets
Cash and due from banks		$	13,865			$	10,857			$	10,399
Interest bearing bank deposits			11,029				12,978				14,854
Total cash and cash equivalents			24,894				23,835				25,253
Securities available for sale, at fair value			266,773				265,777				278,125
Securities held to maturity			26,183				28,563				35,747
Equity securities, restricted, at cost			7,854				8,358				7,236
Total securities			300,810				302,698				321,108
Loans held for sale			-				100				5,653
Loans not covered by FDIC shared-loss agreements			632,343				596,173				587,757
Loans covered by FDIC shared-loss agreements			65,932				73,275				79,476
Allowance for loan losses (non-covered)			(10,254	)			(10,444	)			(11,523	)
Allowance for loan losses (covered)			(386	)			(484	)			(484	)
Net loans			687,635				658,520				655,226
Bank premises and equipment			25,772				27,872				33,318
Bank premises and equipment held for sale			3,237				-				-
Other real estate owned, non-covered			6,390				6,244				7,593
Other real estate owned, covered by FDIC			2,967				2,692				2,411
FDIC receivable			594				368				878
Bank owned life insurance			21,118				20,795				20,449
Core deposit intangibles, net			5,667				6,621				9,166
FDIC indemnification asset			22,219				25,409				29,166
Other assets			13,516				14,378				14,346
Total assets		$	1,114,819			$	1,089,532			$	1,124,567
Liabilities
Deposits:
Noninterest bearing			78,744				70,132				88,696
Interest bearing			836,072				822,209				864,212
Total deposits			914,816				892,341				952,908
Federal funds purchased and securities sold under agreements to repurchase			2,540				6,000				1,000
Federal Home Loan Bank advances			76,766				77,125				49,479
Long term debt			10,680
Trust preferred capital notes			4,124				4,124				4,124
Other liabilities			3,804				3,283				4,238
Total liabilities			1,012,730				982,873				1,011,749
Shareholders' Equity
Preferred stock (5,000,000 shares authorized $0.01 par value; 0, 10,680 and 17,680 shares issued and outstanding, respectively)			-				10,680				17,680
Discount on preferred stock			-				-				(117	)
Warrants on preferred stock			-				1,037				1,037
Common stock (200,000,000 shares authorized $0.01 par value; 21,750,841, 21,709,096, 21,693,059, shares issued and outstanding , respectively)			218				217				217
Additional paid in capital			145,096				144,656				144,532
Accumulated deficit			(42,625	)			(45,822	)			(48,237	)
Accumulated other comprehensive loss			(600	)			(4,109	)			(2,294	)
Total shareholders' equity		$	102,089			$	106,659			$	112,818
Total liabilities and shareholders' equity		$	1,114,819			$	1,089,532			$	1,124,567

 

 

 

Consolidated Statements of Operations
Unaudited Condensed
(Dollars in thousands)						Three months ended												Three months ended
		YTD 2014				June 30, 2014				March 31, 2014				YTD 2013				June 30, 2013				March 31 2013
Interest and dividend income
Interest and fees on loans		$	14,342			$	7,291			$	7,051			$	15,133			$	7,622			$	7,511
Interest and fees on FDIC covered loans			6,225				3,264				2,961				5,404				2,745				2,659
Interest on federal funds sold			-				-				-				3				1				2
Interest on deposits in other banks			35				22				13				22				14				8
Investments (taxable)			3,408				1,710				1,698				3,783				1,945				1,838
Investments (nontaxable)			324				168				156				312				164				148
Total interest income			24,334				12,455				11,879				24,657				12,491				12,166
Interest expense
Interest on deposits			2,861				1,453				1,408				3,301				1,600				1,701
Interest on short-term borrowings			2				1				1				3				2				1
Interest on other borrowed funds			404				243				161				381				189				192
Total interest expense			3,267				1,697				1,570				3,685				1,791				1,894
Net interest income			21,067				10,758				10,309				20,972				10,700				10,272
Provision for loan losses			-				-				-				-				-				-
Net interest income after provision for loan losses			21,067				10,758				10,309				20,972				10,700				10,272
Noninterest income
Service charges on deposit accounts			1,050				561				489				1,364				701				663
Gain on sale of securities, net			379				24				355				408				130				278
Gain on sale of other loans, net			75				27				48				-				-				-
Income on bank owned life insurance			385				193				192				348				199				149
Other			382				165				217				544				308				236
Total noninterest income			2,271				970				1,301				2,664				1,338				1,326
Noninterest expense
Salaries and employee benefits			7,951				4,028				3,923				7,894				3,901				3,993
Occupancy expenses			1,335				687				648				1,380				717				663
Equipment expenses			479				260				219				514				247				267
Legal fees			57				29				28				51				38				13
Professional fees			242				135				107				189				139				50
FDIC assessment			401				194				207				390				223				167
Data processing fees			957				463				494				1,088				551				537
FDIC indemnification asset amortization			2,976				1,478				1,498				3,093				1,592				1,501
Amortization of intangibles			954				477				477				1,131				566				565
Other real estate expenses			383				100				283				1,239				502				737
Other operating expenses			2,801				1,508				1,293				2,500				1,282				1,218
Total noninterest expense			18,536				9,359				9,177				19,469				9,758				9,711
Net income before income taxes			4,802				2,369				2,433				4,167				2,280				1,887
Income tax expense			1,358				649				709				1,236				673				563
Net income			3,444				1,720				1,724				2,931				1,607				1,324
Dividends on preferred stock			247				182				65				442				221				221
Accretion of discount on preferred stock			-				-				-				117				59				58
Net income available to common shareholders		$	3,197			$	1,538			$	1,659			$	2,372			$	1,327			$	1,045

 

 

Income Statement Trend Analysis
Unaudited
(Dollars in thousands)		Three months ended
		June 30, 2014				March 31, 2014				December 31, 2013				September 30, 2013				June 30, 2013
Interest and dividend income
Interest and fees on loans		$	7,291			$	7,051			$	7,050			$	7,513			$	7,622
Interest and fees on FDIC covered loans			3,264				2,961				2,994				3,538				2,745
Interest on federal funds sold			0				-				-				-				1
Interest on deposits in other banks			22				13				25				11				14
Investments (taxable)			1,710				1,698				1,976				1,934				1,945
Investments (nontaxable)			168				156				172				175				164
Total interest income			12,455				11,879				12,217				13,171				12,491
Interest expense
Interest on deposits			1,453				1,408				1,501				1,568				1,600
Interest on short-term borrowings			1				1				-				1				2
Interest on other borrowed funds			243				161				143				180				189
Total interest expense			1,697				1,570				1,644				1,749				1,791
Net interest income			10,758				10,309				10,573				11,422				10,700
Provision for loan losses			-				-				-				-				-
Net interest income after provision for loan losses			10,758				10,309				10,573				11,422				10,700
Noninterest income
Service charges on deposit accounts			561				489				634				741				701
Gain on sale of securities, net			24				355				72				38				130
Gain/(loss) on sale of other loans, net			27				48				255				(614	)			-
Income on bank owned life insurance			193				192				200				199				199
Other			165				217				306				229				308
Total noninterest income			970				1,301				1,467				593				1,338
Noninterest expense
Salaries and employee benefits			4,028				3,923				3,991				4,096				3,901
Occupancy expenses			687				648				647				690				717
Equipment expenses			260				219				248				276				247
Legal fees			29				28				20				24				38
Professional fees			135				107				49				52				139
FDIC assessment			194				207				228				225				223
Data processing fees			463				494				505				485				551
FDIC indemnification asset amortization			1,478				1,498				1,640				1,716				1,592
Amortization of intangibles			477				477				506				565				566
Other real estate expenses			100				283				828				(33	)			502
Other operating expenses			1,508				1,293				1,724				1,337				1,282
Total noninterest expense			9,359				9,177				10,386				9,433				9,758
Net income before income taxes			2,369				2,433				1,654				2,582				2,280
Income tax expense			649				709				461				800				673
Net income			1,720				1,724				1,193				1,782				1,607
Dividends on preferred stock			182				65				235				208				221
Accretion of discount on preferred stock			-				-				44				73				59
Net income available to common shareholders		$	1,538			$	1,659			$	914			$	1,501			$	1,327

 

 

COMMUNITY BANKERS TRUST CORPORATION

NET INTEREST MARGIN ANALYSIS

AVERAGE BALANCE SHEETS

(Dollars in thousands)

 

		Three months ended June 30, 2014												Three months ended June 30, 2013
		Average Balance Sheet				Interest Income / Expense				Average Rates Earned / Paid				Average Balance Sheet				Interest Income / Expense				Average Rates Earned / Paid
ASSETS:
Loans non-covered, including fees		$	611,065			$	7,291				4.79	%		$	582,940			$	7,622				5.24	%
FDIC covered loans,  including fees			66,722				3,264				19.62	%			82,177				2,745				13.40	%
Total loans			677,787				10,555				6.25	%			665,117				10,367				6.25	%
Interest bearing bank balances			28,795				22				0.31	%			20,407				14				0.27	%
Federal funds sold			1,379				0				0.10	%			1,951				1				0.11	%
Securities (taxable)			269,566				1,710				2.54	%			293,211				1,945				2.65	%
Securities (tax exempt)(1)			22,436				255				4.53	%			20,235				248				4.91	%
Total earning assets			999,963				12,542				5.03	%			1,000,921				12,575				5.04	%
Allowance for loan losses			(10,802	)											(12,919	)
Non-earning assets			117,948												129,804
Total assets		$	1,107,109											$	1,117,806
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Demand - interest bearing		$	199,829			$	148				0.30	%		$	242,346			$	190				0.31	%
Savings			77,057				66				0.34	%			81,627				70				0.34	%
Time deposits			558,797				1,239				0.89	%			536,115				1,340				1.00	%
Total interest bearing deposits			835,683				1,453				0.70	%			860,088				1,600				0.75	%
Short-term borrowings			73				1				0.61	%			1,145				2				0.77	%
FHLB and other borrowings			81,056				162				0.80	%			53,765				189				1.41	%
Long- term debt			8,098				81				4.03	%
Total interest bearing liabilities			924,910				1,697				0.74	%			914,998				1,791				0.79	%
Noninterest bearing deposits			73,738												81,056
Other liabilities			4,526												3,936
Total liabilities			1,003,174												999,990
Shareholders' equity			103,935												117,816
Total liabilities and shareholders’' equity		$	1,107,109											$	1,117,806
Net interest earnings						$	10,845											$	10,784
Interest spread											4.29	%											4.25	%
Net interest margin											4.35	%											4.32	%

 

(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)

 

		Six months ended June 30, 2014												Six months ended June 30, 2013
		Average Balance Sheet				Interest Income / Expense				Average Rates Earned / Paid				Average Balance Sheet				Interest Income / Expense				Average Rates Earned / Paid
ASSETS:
Loans non-covered, including fees		$	603,381			$	14,342				4.79	%		$	581,821			$	15,133				5.25	%
FDIC covered loans,  including fees			69,731				6,225				18.00	%			81,951				5,404				13.30	%
Total loans			673,112				20,567				6.16	%			663,772				20,537				6.24	%
Interest bearing bank balances			22,586				35				0.31	%			18,416				22				0.24	%
Federal funds sold			693				0				0.00	%			5,859				3				0.10	%
Securities (taxable)			274,404				3,408				2.48	%			296,587				3,783				2.55	%
Securities (tax exempt)(1)			21,244				491				4.61	%			19,075				473				4.96	%
Total earning assets			992,039				24,501				4.98	%			1,003,709				24,818				4.99	%
Allowance for loan losses			(10,878	)											(13,193	)
Non-earning assets			115,838												131,084
Total assets		$	1,096,999											$	1,121,600
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Demand - interest bearing		$	195,341			$	291				0.30	%		$	244,021			$	380				0.31	%
Savings			76,333				132				0.35	%			80,011				131				0.33	%
Time deposits			557,340				2,438				0.88	%			543,578				2,790				1.03	%
Total interest bearing deposits			829,014				2,861				0.70	%			867,610				3,301				0.77	%
Short-term borrowings			601				2				0.52	%			739				3				0.76	%
FHLB and other borrowings			81,145				323				0.80	%			53,851				381				1.43	%
Long- term debt			4,071				81				4.03	%			-				-
Total interest bearing liabilities			914,831				3,267				0.72	%			922,200				3,685				0.81	%
Noninterest bearing deposits			71,180												78,319
Other liabilities			4,225												4,026
Total liabilities			990,236												1,004,545
Shareholders' equity			106,763												117,055
Total liabilities and shareholders’' equity		$	1,096,999											$	1,121,600
Net interest earnings						$	21,234											$	21,133
Interest spread											4.26	%											4.18	%
Net interest margin											4.32	%											4.25	%

 

(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). 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 table reconciles these non-GAAP measures from their respective GAAP basis measures.

 

		June 30, 2014				March 31,  2014				December 31, 2013				June 30, 2013
Common Tangible Book Value
Total shareholder's equity		$	102,089,000			$	110,647,000			$	106,659,000			$	112,818,000
Preferred stock (net)			-				11,717,000				11,717,000				18,600,000
Core deposit intangible (net)			5,667,000				6,144,000				6,621,000				9,166,000
Common tangible book value			96,422,000				92,786,000				88,321,000				85,052,000
Shares outstanding			21,750,841				21,720,221				21,709,096				21,693,059
Common tangible book value per share		$	4.43			$	4.27			$	4.07			$	3.92
Stock Price		$	4.38			$	4.02			$	3.76			$	3.62
Price/common tangible book			98.9	%			94.1	%			92.4	%			92.4	%
Common tangible book/common tangible assets
Total assets		$	1,114,819,000			$	1,101,702,000			$	1,089,532,000			$	1,124,567,000
Preferred stock (net)			-				11,717,000				11,717,000				18,600,000
Core deposit intangible			5,667,000				6,144,000				6,621,000				9,166,000
Common tangible assets			1,109,152,000				1,083,841,000				1,077,194,000				1,096,801,000
Common tangible book			96,422,000				92,786,000				88,321,000				85,052,000
Common tangible equity to common tangible assets			8.69	%			8.56	%			8.20	%			7.75	%