Community Bankers’ Bank and CBB Financial Corp. Announce Third Quarter 2022 Operating Results

a. Net loan balances are up 4% year over year.

b. Recent rate increases have improved asset yields and the net interest margin; however, upcoming funding maturities are expected to put pressure on the margin going forward.

c. Rising interest rates also affect earnings credits, resulting in lower service fee income.

d. Other non-interest income continues to improve as CBB’s alliance partnerships help create efficiencies and improve productivity for our client banks.

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 13.36% at September 30, 2022, compared to 12.20% at December 31, 2021.

Gary R. Shook, President and Chief Executive Officer of CBB Financial Corp. and Community Bankers’ Bank, commented, “We are certainly pleased with CBB’s performance thus far in 2022.  Many of our strategic focal points are bearing fruit.  Loan growth has been strong, especially given the increased pace of pay-offs witnessed in the first half of the year, and fee income from alliance partnerships remains robust.  September brought the addition of Darrell Rogers as the Regional Manager for the Carolinas and Georgia, with the 4^th Quarter bringing in new credit and portfolio management team members as well.  While the cost of funds continues to be a focus, we are gratified that the pace of new loans at current market rates along with the variable rate nature of the existing portfolio, have CBB currently running ahead of budget as to net interest income. Additionally, CBB’s focus on growing investment business and consulting partnerships continue to add value for our shareholders and clients while adding reasonable income to the bottom line.”

Mr. Shook continued, “Looking forward to 2023, CBB will continue to emphasize net interest income growth and increasing non-interest income derived from multiple revenue streams. Management continues its mission of growing CBB while serving our shareholders and clients.”