News Release


Midlothian, Virginia, July 29, 2020:  The second quarter of 2020 saw significant continuing 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. Since the beginning of the pandemic, 20% of our loan participations (approximately $20 million) were provided payment modifications for 90 to 120 days, consistent with guidelines of the CARES Act.  As of July 22, 2020, 59% of these balances have returned to normal payment structures.  Of the 8.3% of the portfolio remaining on deferment, 60% are paying interest and the remainder should end their principal and interest deferments by late September 2020.

c. The Bank added $50,000 to its allowance for loan losses in the second quarter of 2020, as a precautionary measure against potential deterioration of asset quality in certain loan segments including those with payment modifications in place as a result of the COVID-19 pandemic.

Net income of $157,000 was recorded for the three-month period ended June 30, 2020, compared to net income of $101,000 for the three-month period ended June 30, 2019.  Net income of $255,000 was recorded for the six-month period ended June 30, 2020, compared to net income of $311,000 for the six-month period ended June 30, 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 the first six months of 2019.  The Bank has recorded a loan loss provision of $50,000 for the second quarter of 2020 due to economic uncertainties and its impact on asset quality coming out of the pandemic, and $150,000 for the first six months of 2020.  The loan loss allowance at June 30, 2020 was $1,849,000, or 1.94% of gross loans, compared to $1,914,000, or 2.25% of gross loans, at June 30, 2019.

There were no non-performing assets at June 30, 2020, December 31, 2019, and June 30,, 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 11.43% at June 30, 2020.  By comparison, the Bank’s Tier 1 leverage ratio using previous rules totaled 13.04% at December 31, 2019 and 13.03% at June 30, 2019, while the Bank’s Total Capital Ratio equaled under previous rules was 16.72% at December 31, 2019 and 16.83% at June 30, 2019.

G. William Beale, Retiring President and Chief Executive Officer stated, “for the first six months of 2020 the Bank’s loans have been holding steady and we have seen increased levels of fee income.  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 $150,000 to our allowance for loan and lease losses in 2020 ($100,000 in the first quarter and $50,000 in the second quarter).  The Bank will continue to evaluate and monitor any early warning signs of credit risk.”

Mr. Beale concluded by saying “I am pleased with the results the team has achieved during my 20-month tenure as president and CEO.  Community Bankers’ Bank is stronger and ready to move forward at a quickened pace under the leadership of Gary Shook.”

Incoming President and Chief Executive Officer Gary R. Shook said “I am grateful to be the beneficiary of Billy’s leadership and the CBB Team’s hard work.  The first six months of 2020 have been a challenge to say the least.  While great uncertainty clouds the coming months, having the Bank well provisioned with good earnings and a strong balance sheet as of June 30th bode well as we move forward.”  Mr. Shook continued,   “We will work hard in the coming weeks and months to continually improve our communications and to better position ourselves as the “go to” financial partner of our clients and shareholders.  While we are currently locked down due to COVID 19 from making visitations, I do look forward to meeting our stakeholders as soon as I possibly can.  Thank you for your business!”


For further information, please contact:

Gary R. Shook
President & CEO

2601 Promenade Pkwy
Midlothian, VA 23113

Phone: 804-256-0530
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: