Community Bankers’ Bank and CBB Financial Corp. Announce Third Quarter 2023 Operating Results

a. Loan demand picked up, resulting in strong growth in net loan balances in the Third Quarter of 2023. Loans year over year are up 8%.

b. Net Interest Income is flat year over year. Net Interest Margin has decreased due to rising funding costs. 

c. Lower non-interest income is the primary reason for lower year-over-year income. The higher interest rates negatively impact our net servicing fees collected due to higher earnings credit rates provided to our clients.

d. We continue to have solid income from alliance partnerships that are helping our clients improve their productivity.

The Bank continues to maintain a strong capital position that exceeds all regulatory requirements to be classified as “well capitalized,” with a Community Bank Leverage Ratio of 12.83% at September 30, 2023, compared to 12.99% at December 31, 2022.

Gary R. Shook, President and Chief Executive Officer of CBB Financial Corp. and Community Bankers’ Bank, commented,” “We are very pleased with CBB’s loan growth, which remains strong for 2023.  Moreover, we are purchasing and selling loans from diverse geographical markets throughout the Fifth Federal Reserve District and contiguous markets. Income from our Alliance Partners has been especially strong for 2023, which we anticipate carrying over into 2024. While our 2023 earnings remain muted due to the high cost of funds and increased earnings credits, we see income normalizing as we push through 2024.  As shareholders of a bank-owned cooperative, we ask that you look to CBB first for our value added services, such as Bond Purchases and Sales, Core Contracts and Check Printing contract negotiations. CBB is fully up to speed to handle your settlement of instant payments and can answer all of your FedNow Service questions. As always, I ask our Bankers to invite the CBB team in as we make the rounds through our markets.” 

For further information, please contact:

Gary R. Shook