PR Newswire
RICHMOND, Va., July 30, 2021
RICHMOND, Va., July 30, 2021 /PRNewswire/ -- 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.
OPERATING HIGHLIGHTS
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."
Smith added, "Noninterest expenses were up for the quarter as we prepare for the pending merger. We are excited to become a part of United Bank as their enhanced product offerings and size will make us much more competitive in our markets. The merger is expected to become effective in December of this year, pending all closing conditions."
RESULTS OF OPERATIONS
Overview
Linked Quarter Basis
Net income was $5.4 million for the second quarter of 2021, compared with net income of $6.6 million in the first quarter of 2021. Earnings per share were $0.24 basic and fully diluted for the second quarter of 2021 and $0.30 basic and fully diluted for the first quarter of 2021. Provision for loan losses reflected a credit of $1.4 million for the first quarter of 2021 compared with no provision in the second quarter of 2021. Continued improvement in credit quality and loan risk ratings was the driver behind the recapture in the first quarter of previous provision. There was a more stable economic climate in the first and second quarters of 2021 compared with each quarter in 2020. Net interest income increased by $419,000 in the second quarter compared with the first quarter of 2021. Net interest income was positively affected by a continuation of decreasing costs in interest expense, which declined $215,000 on a linked quarter basis, and by an increase of $204,000 in interest and dividend income. Noninterest income decreased $167,000 on a linked quarter basis while noninterest expenses increased by $437,000, driven by merger related expenses of $570,000. Income tax expense decreased $368,000 in the second quarter of 2021 compared with the prior quarter. Details of the linked quarter financial performance of the Company are presented below.
Year-over-Year Second Quarter
Net income in the second quarter of 2021 increased $1.3 million when compared to the same period in 2020. Net income was $5.4 million in the second quarter of 2021, with earnings per share of $0.24 basic and fully diluted. Net income for the second quarter of 2020 was $4.2 million, with earnings per share of $0.19 basic and $0.18 fully diluted. There was an increase of $2.1 million in net interest income, primarily from a decline in interest expense of $1.8 million in the second quarter of 2021 compared with the same period one year earlier. Provision for loan losses decreased $900,000 year over year and is reflective of no provision taken during the second quarter of 2021. Offsetting these increases to net income were an increase of $1.3 million in noninterest expenses and a decrease of $155,000 in noninterest income. There was also an increase of $297,000 in income tax expense year over year. Details of the year-over-year financial performance of the Company are presented below.
Year-over-Year Six Months
Net income of $12.1 million for the first six months of 2021 reflects an increase of $6.5 million, or 116.5%, over net income of $5.6 million for the same period in 2020. Provision for loan losses reflects a reserve recovery of $1.4 million for the first six months of 2021 compared with a provision of $4.2 million during the early stage of the COVID-19 pandemic for the first six months of 2020. Interest expense declined $3.8 million and was $3.3 million for the first six months of 2021 compared with $7.1 million for the first six months of 2020. Smaller increases were in interest and dividend income, which increased $227,000, and in noninterest income, which increased $138,000 in the first six months of 2021 compared with the same period in 2020. Offsetting these increases to net income were an increase of $1.5 million in noninterest expenses, which were $17.9 million for the first six months of 2021, and $1.7 million greater expense in income taxes, which were $3.0 million for the first six months of 2021.
The following table presents summary income statements for the three months ended June 30, 2021, March 31, 2021 and June 30, 2020 and six months ended June 30, 2021 and June 30, 2020.
SUMMARY INCOME STATEMENT | | | | | | | | | | |
(Unaudited) (Dollars in thousands) | | | | | | | | | | |
| | For the three months ended | | For the six months ended | ||||||
| | 30-Jun-21 | | 31-Mar-21 | | 30-Jun-20 | | 30-Jun-21 | | 30-Jun-20 |
Interest income | $ | 16,064 | $ | 15,860 | $ | 15,751 | $ | 31,924 | $ | 31,697 |
Interest expense | | 1,567 | | 1,782 | | 3,391 | | 3,349 | | 7,099 |
Net interest income | | 14,497 | | 14,078 | | 12,360 | | 28,575 | | 24,598 |
(Recovery of) provision for loan losses | | 0 | | (1,400) | | 900 | | (1,400) | | 4,200 |
Net interest income after (recovery of ) provision for loan losses | | 14,497 | | 15,478 | | 11,460 | | 29,975 | | 20,398 |
Noninterest income | | 1,461 | | 1,628 | | 1,616 | | 3,089 | | 2,951 |
Noninterest expense | | 9,192 | | 8,755 | | 7,873 | | 17,947 | | 16,467 |
Income before income taxes | | 6,766 | | 8,351 | | 5,203 | | 15,117 | | 6,882 |
Income tax expense | | 1,340 | | 1,708 | | 1,043 | | 3,048 | | 1,307 |
Net income | $ | 5,426 | $ | 6,643 | $ | 4,160 | $ | 12,069 | $ | 5,575 |
| | | | | | | | | | |
EPS Basic | $ | 0.24 | $ Werbung Mehr Nachrichten zur COMMUNITY BKERS TR. Aktie kostenlos abonnieren
E-Mail-Adresse
Bitte überprüfe deine die E-Mail-Adresse.
Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. |