Community Bankers’ Bank and CBB Financial Corp. Announce Second Quarter 2021 Operating Results

a. Non-interest income for the second quarter of 2021 was 25% higher than the comparable period in 2020.  The increase was driven in part by interest-sensitive fee income that rises when market rates fall.  Additionally, a higher volume of securities transactions were generated in the second quarter of 2021, which produced a 15% increase in CBB’s brokerage revenues compared to the same period in 2020.

b. Gross loan balances increased by 1.5% in the second quarter of 2021, as balances re-financed by other institutions nearly offset funding of new loans.

c. In the second quarter of 2021, the Bank took $30,000 of the allowance for loan and lease losses into income, representing cash recoveries on loans charged off in previous years.  In the second quarter of 2020, the Bank had provided $50,000 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 as a result of the COVID-19 pandemic; however, no charge-offs were recorded in the second quarter of 2020.

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 11.51% at June 30, 2021, compared to 11.24% at December 31, 2020 and 11.43% at June 30, 2020.

Gary R. Shook, President and Chief Executive Officer of CBB Financial Corp. and Community Bankers’ Bank, commented, “Once again, the Company saw strong growth in fee income during  second quarter 2021, including fixed income security transactions through CBB’s trading partnership. These additional fees helped offset continued headwinds in the growth of our loan portfolio, resulting from record levels of liquidity in the private sector, and the banking system. With that said, I am pleased to report that overall earnings continue to track CBB’s strong performance in 2020. Additionally, as of July 1, Jeff Culver assumed the reins as CBB’s CFO/COO following the retirement of Steve Kinnier. Jeff’s extensive knowledge of finance, technology, and process improvement will position us well for the future.  Moreover, with CBB’s focus on expanding fee income lines and developing a consultancy practice, Jeff adds unique skills to advance these pursuits more quickly.  While reflecting upon my first year as your CEO, I am pleased and gratified by the reception I have received and continue to enjoy as I travel our markets visiting with bankers.  Community banks and their bankers are integral parts of our economic system, and it is certainly Community Bankers’ Bank’s focus to assist our clients and shareholders in fulfilling their mission.”