SOUTH HILL, Va., Jan. 27, 2017 /PRNewswire/ -- CCB Bankshares, Inc. (OTCQB: CZYB) today announced its unaudited results of operations for 2016.
Earnings
CCB Bankshares, Inc. is pleased to announce consolidated earnings to common shareholders of $219,569 for the fourth quarter of 2016 and $802,343 for the year ended December 31, 2016. Earnings per share for the fourth quarter and the year were $0.15 and $0.53 on a basic and fully dilutive basis, respectively. Net earnings available to common shareholders of the Company were $793,343 and $702,564 for the years ended December 31, 2016 and 2015, or $0.53 and $0.47 per share, respectively, on a basic and fully dilutive basis. Preferred dividend payments for 2016 and 2015 totaled $9,000 and $24,333, respectively.
President and CEO James R. Black reported, "The CCB team executed well for 2016 and I am proud of our results. We experienced significant growth and prudently deployed our capital. With continued reinvestment and dedicated focus on executing our strategic plan, I expect value creation and our momentum to continue."
In comparing the fourth quarter of 2016 to the same quarter in 2015, net interest income increased by $159,060 or 9.8%. This resulted from $23.6 million in net loan growth and modest reductions in the weighted cost of funds. Noninterest income for the fourth quarter increased $39,818 or 24.1% over the same period in 2015. Noninterest expense for the fourth quarter of 2016 was $1,539,960, compared to $1,459,969 for the same period of 2015. The additional expense incurred was primarily due to the write down of an OREO property acquired during the fourth quarter of 2016. As a result of resolution of two legacy problem loan relationships and loan growth in the second half of 2016, the Bank contributed $490 thousand to the allowance for 2016, with $150 thousand of that in the fourth quarter.
Net interest income for the year ended December 31, 2016 was $6.8 million, an increase of $700 thousand or 11.4% over $6.1 million at December 31, 2015. Primary contributing factors include a net increase of $900 thousand in loan interest income, and $300 thousand in interest expense, primarily as a result of the placement of $3.5 million in subordinated debt in the first quarter of 2016. The weighted cost of funds at December 31, 2016 was 0.58%, a 6 basis point reduction from December 31, 2015. Growth in lower-cost core deposits and the ability to reprice higher-priced certificates fueled this improvement and helped to offset the cost of the subordinated debt. The margin at December 31, 2016 was 3.67%, compared to 3.77% at December 31, 2015.
Noninterest income for 2016 was $808 thousand compared to $797 thousand for 2015, an increase of $11 thousand or 1.4%. Building profitable relationships without the imposition of excessive fees continues to be a point of emphasis. ATM fees increased 9.6% and fees from merchant services increased 10.8%; however, fees for origination of mortgages for the secondary market decreased by 19.5% as rising rates created a slowing demand and the Company is able to hold longer term mortgages in support of its relationship-centered strategy. Noninterest expense for 2016 was $6.0 million, compared to $5.5 million in 2015. Loan volume generated significant deferred benefits; legal and professional fees increased by 53.1% in light of the ever-increasing cost of audit and compliance, and costs associated with the resolution of legacy non-performing assets. Net losses on the sale of other real estate in 2016 totaled $7,372, compared to a net gain of $13,800 in 2015. In 2016, a loss of $24,268 from the sale of assets acquired in the settlement of a loan and a $63,000 write down of other real estate owned were recorded.
Growth
At December 31, 2016, total assets on a consolidated basis were $211.6 million, up $31.4 million or 17.4% from the $180.2 million at December 31, 2015. Gross loans were $174.9 million an increase of $23.9 or 15.9% over the balance of $151.0 million at December 31, 2015. Deposits totaled $183.6 million, an increase of $28.1 million or 18.3% over the balance of $153.5 million at December 31, 2015.
Asset Quality
At December 31, 2016, the allowance for loan losses was $2.2 million, compared to $1.9 million at December 31, 2015. Provision expense for 2016 was $490 thousand compared to $410 thousand at December 31, 2015. The allowance for loan losses represented 1.23% of loans as of December 31, 2016, compared to 1.26% at December 31, 2015. For 2016, net charge-offs equaled $235,812 or 0.14% of average loans, compared to $451,697 or 0.32% of average loans at December 31, 2015. Nonperforming loans, which exclude performing troubled debt restructurings, equaled $485,532 or 0.28% of loans compared to $515,952 or 0.34% at December 31, 2015. There were no loans 90 days past due and still accruing interest on December 31, 2016.
At December 31, 2016, other real estate owned was $356,872 compared with $154,450 at year end 2015. Valuation write-downs of $63 thousand were taken in 2016. In aggregate, nonperforming assets equaled $842 thousand or 0.40% of total assets compared to $733 thousand or 0.40% of total assets at December 31, 2015. As of December 31, 2016, total adversely classified assets totaled $3.5 million, flat to December 31, 2015.
Capital
As of December 31, 2016, the Bank's total risk-based capital was 14.2% compared to 14.4% one year ago, and Tier 1 leverage was 10.1%, compared to 10.7% at December 31, 2015. On February 18, 2016, the Company issued $3.5 million in subordinated debt, fixed at 7.0% for a term of 10 years. Subsequently, on March 1, 2016, the Company redeemed the final $1.0 million of preferred stock held as a condition of participation in the Small Business Lending Fund program. In December 2016, the Company injected $1.6 million in additional capital to the Bank to support continued growth and strategic expansion initiatives. Capital ratios continue to be significantly higher than the minimum regulatory requirements for well capitalized institutions.
CCB Bankshares, Inc. is a Virginia state chartered bank holding company headquartered in South Hill, Virginia and parent company to Citizens Community Bank. It operates six branches, three in south central Virginia and three in northern North Carolina as well as a loan production office in Clarksville, Virginia. For more information and additional financial data, please visit www.ccbsite.com.
This press release contains "forward-looking statements" that concern future events which are subject to risks and uncertainties. Any such statements are based on certain assumptions and analyses by the Bank and other factors it believes are appropriate in the circumstances and at the time at which such statements are made. The Bank's actual results, events and developments may differ materially from those contemplated by any forward-looking statement. The Bank has no responsibility to update such forward-looking statements.
CCB Bankshares, Inc. - December 31, 2016
(Unaudited)
(Actual dollars, except per share data) Three Months Ended December 31 Year Ended December 31
------------------------------ ----------------------
Selected Operating Data: 2016 2015 2016 2015
---- ---- ---- ----
Net interest income $1,786,181 $1,627,121 $6,802,787 $6,108,959
Provision for loan losses (150,000) (200,000) (490,000) (410,000)
Noninterest income 204,954 165,136 808,336 797,459
Noninterest expense 1,539,960 1,459,969 6,008,351 5,477,188
--------- --------- --------- ---------
Income before income tax 301,174 196,644 1,112,772 1,019,230
Income tax expense 81,605 51,404 310,429 292,332
------ ------ ------- -------
Net income $219,569 $145,240 $802,343 $726,898
======== ======== ======== ========
Less: Preferred dividends $ - $2,500 $9,000 $24,333
-------------------- ------ ------ -------
Net income available to common
shareholders $219,569 $142,740 $793,343 $702,564
======== ======== ======== ========
Income per share available to
common shareholders:(1)
Basic $0.15 $0.10 $0.53 $0.47
===== ===== ===== =====
Diluted $0.15 $0.10 $0.53 $0.47
===== ===== ===== =====
Average shares outstanding, basic 1,512,289 1,509,945 1,511,812 1,509,706
Average shares outstanding, diluted 1,512,289 1,509,945 1,511,812 1,509,706
(1) share amounts revised to show restricted stock grants awarded in 2016.
CCB Bankshares, Inc.
Financial Highlights - December 31, 2016
(Actual dollars, except per share data) Year ended December 31,
-----------------------
Balance Sheet Data: 2016 2015
---- ----
Total assets $211,604,170 $180,218,211
Loans, net of ALLR 172,719,436 149,124,611
Deposits 183,557,552 153,508,179
Federal funds purchased - -
Borrowings 5,000,000 7,000,000
Subordinated debt 3,500,000 -
Preferred stock - 1,000,000
Tangible Common Shareholders Equity 18,856,801 18,289,589
Book value per share (1) $12.46 $12.12
Total shares outstanding (1) 1,512,816 1,509,045
Year ended December 31,
-----------------------
Performance Ratios: 2016 2015
---- ----
Return on average assets 0.41% 0.41%
Return on average common equity 4.28% 3.85%
Net interest margin 3.67% 3.77%
Overhead efficiency 78.94% 79.31%
Year ended December 31,
-----------------------
Asset Quality Data: 2016 2015
---- ----
Allowance for loan loss $2,157,873 $1,903,685
Nonperforming assets 842,404 732,902
Nonperforming loans (2) 485,532 515,952
Other real estate owned 356,872 154,450
Other repossessed assets - 62,500
Net charge-offs (recoveries) 235,812 451,697
Classified Loans 3,135,765 3,307,792
Total Classified Assets 3,492,637 3,524,742
Year ended December 31,
-----------------------
Asset Quality Ratios: 2016 2015
---- ----
Allowance for loan loss to total loans 1.23% 1.26%
Nonperforming loans to total loans 0.28% 0.34%
Nonperforming assets to total assets 0.40% 0.41%
Net charge-offs (recoveries) to average loans 0.15% 0.32%
Capital Ratios:
Total risk-based capital 14.20% 14.43%
Tier 1 risk-based capital 12.95% 13.18%
Tier 1 leverage capital 10.15% 10.68%
Note: (1) Shares outstanding reflect issuance of restricted stock awards, vested and unvested.
(2) Excludes performing TDRs of $463,247 and $577,318 for December 31, 2016 and 2015, respectively.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ccb-bankshares-inc-announces-strong-growth-in-2016-results-300398239.html
SOURCE CCB Bankshares, Inc.
