PRESS RELEASE - FOR IMMEDIATE DISTRIBUTION
Dated: October 19, 2021
Solid Third Quarter Earnings Reported by Citizens Bancorp of Virginia, Inc.
Blackstone, Virginia Citizens Bancorp of Virginia, Inc. (the "Company") (OTCBB: CZBT), the parent company of Citizens Bank and Trust Company (the "Bank"), reported quarterly earnings of $1.258 million, or $.59 per share, for the period ended September 30, 2021 compared to $1.083 million, or $.50 per share, for the same period in 2020. The Company's return on assets for the third quarter was .92% in 2021 versus .93% in 2020. The Company reported record earnings of $4.274 million for the first nine months of 2021, or $2.00 per share, compared to $3.822 million, or $1.77 per share, for the prior year.
Earnings Highlights
The Company reported an increase of $139 thousand, or 4.1%, in net interest income for the third quarter of 2021 compared to the same quarter in 2020. The increase can be attributed to a $162 thousand increase in loan fees, almost all of which was from the PPP loan program. Noninterest income increased $121 thousand to $787 thousand in 2021 from $666 thousand in 2020. Noninterest expense increased $277 thousand to $2.889 million in 2021 from $2.612 million in 2020, mainly from the effect of pension settlement accounting. The Company's net interest margin for the third quarter of 2021 was 2.79% versus 3.19% in the third quarter of 2020.
Balance Sheet
At September 30, 2021 total Company assets were $541.5 million, an increase of $48.4 million from December 31, 2020. Gross loans ended the period at $225.6 million, a decrease of $9.2 million, and total deposits increased to $471.9 million from $419.1 million at year end 2020. Noninterest-bearing deposits increased to $114.4 million and interest-bearing deposits increased to $357.4 million.
Capital Strength
The Company's total equity at September 30, 2021 was $59.2 million and its Community Bank Leverage Ratio was approximately 11.30%. This ratio significantly exceeds the current regulatory standards for well-capitalized status.
Credit Quality
The Bank's loan portfolio has continued to perform well and remains stable. The Company reported net recoveries of $34 thousand for the quarter ended September 30, 2021 compared to net charge-offs of $14 thousand for the same period in 2020. At September 30, 2021 Other Real Estate Owned (OREO) decreased to $2.1 million, or by 29%, from December 31, 2020. Nonaccruing loans as a percentage of loans at September 30, 2021 remained flat at a very low .01%.
President and CEO Joseph D. Borgerding commented, "Management is pleased to report that Citizens Bank & Trust Company had record earnings of $4.274 million for the first nine months of 2021. Growth in secondary market mortgages and fees from government-backed Paycheck Protection loans have been big contributors to the Bank's net income. Historic deposit growth has continued during the first nine months of 2021 as deposits have increased by $52.8 million. I want to thank the Board, management and staff for their dedication in
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overcoming the many challenges of the pandemic to offer uninterrupted service to our customers and communities."
About Citizens Bancorp of Virginia, Inc. and Citizens Bank and Trust Company
Citizens Bank and Trust Company was founded in 1873 and is the second oldest independent bank in Virginia. The Bank has eleven locations in the Counties of Amelia, Chesterfield, Nottoway, Mecklenburg, Powhatan and Prince Edward and one location in the City of Colonial Heights, Virginia. Citizens Bancorp of Virginia, Inc. is the parent company of the Bank and is headquartered in Blackstone, Virginia. The Company's stock trades on the OTC Bulletin Board under the symbol "CZBT". Additional information on the Company and the Bank is also available at its website: www.cbtva.com.
Cautionary Statement about Forward-Looking Statements
We caution you that certain statements in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe that our expectations with respect to these forward-looking statements are based upon reasonable assumptions within the bounds of our business operations, there can be no assurance that the actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. For more details on factors that could affect expectations, see the Company's Annual Report for the year ended December 31, 2020.
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CITIZENS BANCORP OF VIRGINIA, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(Dollars in thousands, except share data)
(Unaudited) | |||||
September 30, | December 31, | ||||
Assets | 2021 | 2020 | |||
Cash and due from banks | $ | 8,764 | $ | 7,636 | |
Interest-bearing deposits in banks | 1,334 | 6,951 | |||
Federal funds sold | 64,348 | 42,336 | |||
Securities available for sale, at fair market value | 216,793 | 176,051 | |||
Restricted securities, at cost | 403 | 527 | |||
Loans, net of allowance for loan losses of $2,926 in 2021 | |||||
and $2,996 in 2020 | 222,717 | 231,845 | |||
Premises and equipment, net | 8,570 | 8,953 | |||
Accrued interest receivable | 1,553 | 1,761 | |||
Other assets | 1,382 | 859 | |||
Bank-owned life insurance | 13,537 | 13,255 | |||
Other real estate owned, net of valuation allowance of $158 in 2021 | |||||
and $291 in 2020 | 2,097 | 2,964 | |||
Total assets | $ | 541,498 | $ | 493,138 | |
Liabilities and Stockholders' Equity | |||||
Liabilities | |||||
Deposits: | |||||
Noninterest-bearing | $ | 114,445 | $ | 99,661 | |
Interest-bearing | 357,447 | 319,426 | |||
Total deposits | 471,892 | 419,087 | |||
Other borrowings | 5,499 | 11,894 | |||
Accrued interest payable | 233 | 321 | |||
Accrued expenses and other liabilities | 4,718 | 3,512 | |||
Total liabilities | 482,342 | 434,814 | |||
Stockholders' Equity | |||||
Preferred stock, $0.50 par value; authorized 1,000,000 shares; | |||||
none outstanding | - | - | |||
Common stock, $0.50 par value; authorized 10,000,000 shares; | |||||
issued and outstanding, 2,131,138 for 2021 and 2,143,660 for 2020 | 1,065 | 1,072 | |||
Additional paid-in capital | - | - | |||
Retained earnings | 60,043 | 57,656 | |||
Accumulated other comprehensive loss | (1,952) | (404) | |||
Total stockholders' equity | 59,156 | 58,324 | |||
Total liabilities and stockholders' equity | $ | 541,498 | $ | 493,138 | |
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CITIZENS BANCORP OF VIRGINIA, INC. AND SUBSIDIARY
Consolidated Statements of Income
(Dollars in thousands, except per share data)
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Interest and Dividend Income | $ | 3,359 | $ | 3,275 | |||||||||||||||||||||
Loans, including fees | $ | 9,919 | $ | 9,698 | |||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||
Taxable | 390 | 397 | 1,111 | 1,402 | |||||||||||||||||||||
Tax-exempt | 53 | 98 | 197 | 334 | |||||||||||||||||||||
Federal funds sold | 45 | 11 | 92 | 151 | |||||||||||||||||||||
Other | 7 | 28 | 37 | 62 | |||||||||||||||||||||
Total interest and dividend income | 3,854 | 3,809 | 11,356 | 11,647 | |||||||||||||||||||||
Interest Expense | |||||||||||||||||||||||||
Deposits | 293 | 381 | 931 | 1,217 | |||||||||||||||||||||
Borrowings | 5 | 11 | 23 | 37 | |||||||||||||||||||||
Total interest expense | 298 | 392 | 954 | 1,254 | |||||||||||||||||||||
Net interest income | 3,556 | 3,417 | 10,402 | 10,393 | |||||||||||||||||||||
Provision for loan losses | (100) | 150 | (100) | 400 | |||||||||||||||||||||
Net interest income after provision | |||||||||||||||||||||||||
for loan losses | 3,656 | 3,267 | 10,502 | 9,993 | |||||||||||||||||||||
Noninterest Income | |||||||||||||||||||||||||
Service charges on deposit accounts | 154 | 133 | 427 | 438 | |||||||||||||||||||||
Net gain (loss) on calls of securities | (9) | - | (7) | 31 | |||||||||||||||||||||
Net gain on sales of loans | 82 | 81 | 345 | 239 | |||||||||||||||||||||
Income from bank-owned life insurance | 95 | 95 | 282 | 282 | |||||||||||||||||||||
Interchange income, net | 235 | 199 | 729 | 574 | |||||||||||||||||||||
Other | 230 | 158 | 658 | 496 | |||||||||||||||||||||
Total noninterest income | 787 | 666 | 2,434 | 2,060 | |||||||||||||||||||||
Noninterest Expense | |||||||||||||||||||||||||
Salaries and employee benefits | 1,920 | 1,621 | 4,934 | 4,571 | |||||||||||||||||||||
Net occupancy expense | 177 | 177 | 508 | 516 | |||||||||||||||||||||
Equipment expense | 120 | 131 | 391 | 386 | |||||||||||||||||||||
FDIC deposit insurance | 34 | 28 | 96 | 45 | |||||||||||||||||||||
Net gain on sale of other real estate owned | (44) | (87) | (236) | (213) | |||||||||||||||||||||
OREO expenses, net of rental income | 8 | 33 | 28 | 43 | |||||||||||||||||||||
Other | 674 | 709 | 1,930 | 2,028 | |||||||||||||||||||||
Total noninterest expense | 2,889 | 2,612 | 7,651 | 7,376 | |||||||||||||||||||||
Income before income taxes | 1,554 | 1,321 | 5,285 | 4,677 | |||||||||||||||||||||
Income taxes | 296 | 238 | 1,011 | 855 | |||||||||||||||||||||
Net income | $ | 1,258 | $ | 1,083 | $ | 4,274 | $ | 3,822 | |||||||||||||||||
Earnings per share, basic & diluted | $ | 0.59 | $ | 0.50 | $ | 2.00 | $ | 1.77 | |||||||||||||||||
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CITIZENS BANCORP OF VIRGINIA, INC. AND SUBSIDIARY
Consolidated Regulatory Capital Ratios
And Performance Ratios
(Dollars in thousands, except per share data)
Three Months Ended
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||
2021 | 2021 | 2021 | 2020 | 2020 | ||||||||||||||
Per Share Data: | ||||||||||||||||||
Earnings per weighted | ||||||||||||||||||
average share | $0.59 | $0.69 | $0.72 | $0.56 | $0.50 | |||||||||||||
Weighted average shares | ||||||||||||||||||
outstanding | 2,132,470 | 2,137,051 | 2,143,378 | 2,145,262 | 2,149,820 | |||||||||||||
Actual shares oustanding | 2,131,138 | 2,134,631 | 2,142,731 | 2,143,660 | 2,147,311 | |||||||||||||
Book value per share | ||||||||||||||||||
at period end | $ | 27.76 | $ | 27.67 | $ | 27.08 | $ | 27.21 | $ | 27.10 | ||||||||
Dividend per share | $ | 0.25 | $ | 0.25 | $ | 0.24 | $ | 0.24 | $ | 0.24 | ||||||||
Performance Ratios: | ||||||||||||||||||
Return on average assets | 0.92% | 1.12% | 1.25% | 0.99% | 0.93% | |||||||||||||
Net interest margin, (FTE)1 | 2.79% | 2.78% | 3.02% | 3.17% | 3.19% | |||||||||||||
Efficiency ratio2 | 66.31% | 56.87% | 54.77% | 65.45% | 63.58% | |||||||||||||
Capital and Other Ratios: | ||||||||||||||||||
(Ratios are period end, unless stated otherwise) | ||||||||||||||||||
Tier 1 leverage ratio | 11.30% | 11.45% | 11.85% | 12.28% | 12.60% | |||||||||||||
Allowance for loan losses | ||||||||||||||||||
to total loans | 1.30% | 1.28% | 1.31% | 1.28% | 1.24% | |||||||||||||
Nonaccruing loans to | ||||||||||||||||||
total loans | 0.01% | 0.01% | 0.06% | 0.07% | 0.08% | |||||||||||||
Net charge-offs (net recoveries) | ||||||||||||||||||
to average loans | ||||||||||||||||||
(annualized) | -0.06% | 0.01% | 0.00% | -0.01% | 0.02% |
- The net interest margin is reported on a fully taxable equivalent basis.
- Computed by dividing noninterest expense by the sum of net interest income (on a fully taxable equivalent basis) and noninterest income.
CONTACT: Geoffrey C. Warner
EVP and Chief Financial Officer
Voice: 434-292-8100 or E-mail:Geoffrey.Warner@cbtva.com
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Disclaimer
Citizens Bancorp of Virginia Inc. published this content on 19 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 October 2021 14:30:01 UTC.