News Release


Midlothian, Virginia, April 29, 2020: The first quarter of 2020 saw significant changes in the national and regional economies, including government and business responses to the COVID-19 Pandemic

a. Health and safety of our employees has been a priority. Most of the employees of Community Bankers’ Bank have been working remotely since the last week of March 2020, as outlined in our Pandemic plan.  We have not identified any losses in operating efficiencies due to these emergency arrangements.

b. A number of borrowers have requested temporary modifications to loan terms to allow them to weather the economic storm caused by mandatory closure of large segments of the economy. We have granted deferments to approximately 20% of our loan portfolio.  Some of these deferments were to businesses that have temporarily closed or reduced operations, and some were requested as a preemptive measure to conserve cash.

c. The Bank provided $100,000 to its allowance for loan losses as a precautionary measure against potential deterioration of asset quality in certain loan segments, including those with payment modifications made in March 2020 as a result of the COVID-19 Pandemic.

d. When the Federal Reserve lowered rates on March 15, 2020, CBB made the strategic decision to help our banks by paying an above market earnings credit to help offset the banks’ cost of services. This decision resulted in significant increases in demand deposit account balances in March and April.

Net income of $98,000 was recorded for the three-month period ended March 31, 2020, compared to net income of $130,000 for the three-month period ended December 31, 2019, and net income of $210,000 in the three-month period ended March 31, 2019.  CBB and CBBFC report on a consolidated basis.

The Bank, as a result of strong credit quality, no non-performing loans and recoveries from prior charged off loans, did not record a loan loss provision in either the fourth quarter of 2019 or the first quarter of 2019.  As noted above, the Bank has recorded a loan loss provision of $100,000 for the first quarter of 2020 due to economic uncertainties and its impact on asset quality coming out of the Pandemic.  The loan loss allowance at March 31, 2020 was $1,796,000, or 1.87% of gross loans, compared to $1,684,000, or 1.84% of gross loans, at December 31, 2019.

There were no non-performing assets at March 31, 2020, December 31, 2019, and March 31, 2019.

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 12.71% at March 31, 2020.  By comparison, the Bank’s Tier 1 leverage ratio using previous rules totaled 13.04% at December 31, 2019, and 13.03% at March 31, 2019, while the Bank’s Total Capital Ratio equaled under previous rules was 16.72% at December 31, 2019, and 16.83% at March 31, 2019.

G. William Beale, President, and Chief Executive Officer, stated, “2020 was off to a good start with loans holding steady and increased levels of fee income. Our pre-provision pre-tax income was $214,000. As a result of the COVID-19 Pandemic, our team has seamlessly transitioned to working from home without loss of productivity.  We have processed requests for COVID-19 payment deferrals, but are seeing little to no new loan volume.  While we do not yet have a clear picture of what the true impact of stay at home requirements, lost jobs, and temporary business closures will have on our loan portfolio, it is hard to see a path that does not include credit losses. For that reason, we added $100,000 to our allowance for loan and lease losses. We will continue to evaluate and monitor any early warning signs of credit risk.  I look forward to continuing growth in 2020 as CBB continues its focus on helping community banks compete.  Thank you for the business!”

For further information, please contact:

G. William Beale
President & CEO

2601 Promenade Pkwy
Midlothian, VA 23113

Phone: 804-794-5885 x 116
Fax: 804-378-2856


Stephen R. Kinnier
Senior Vice President & CFO

2601 Promenade Pkwy
Midlothian, VA 23113

Phone: 804-794-5885 x 127
Fax: 804-378-2856

For Correspondent Services Information, contact:

Virginia and West Virginia:
Jo Ellen McKinley, Senior Vice President
Investment Officer and Regional Manager
Phone:  804-239-0452

Maryland, Northern Virginia, and the District of Columbia:
Leesa McShane, Senior Vice President
Regional Manager
Phone:  443-928-3070

North Carolina and South Carolina:
Rose J. Washofsky, Senior Vice President
Regional Manager
Phone:  919-368-0217

Main Office:
Wendy C. Wright, Senior Vice President
Operations & IT
Phone:  804-794-5885 x 119

For Summary Consolidated Financial Data, please download the full Press Release: