Community Bankers (ESXB) Misses Q1 EPS by 2c

Community Bankers (NASDAQ: ESXB) reported Q1 EPS of $0.12, $0.02 worse than the analyst estimate of $0.14.

OPERATING HIGHLIGHTS

• Loans, excluding purchased credit impaired (PCI) loans, grew $22.3 million, or 2.4%, during the first quarter of 2018 and grew $112.1 million, or 13.2%, since March 31, 2017.
• Noninterest bearing deposits grew $21.0 million, or 16.3%, year-over-year.
• There was no provision for loan losses in the first quarter of 2018 compared with a provision of $400,000 in the fourth quarter of 2017.
• Net interest margin increased from 3.72% in the fourth quarter of 2017 to 3.76% in the first quarter of 2018, the result of higher yields and volumes on earning assets.

FINANCIAL HIGHLIGHTS

• Net income was $2.6 million for the quarter ended March 31, 2018, compared with a loss of $640,000 in the fourth quarter of 2017 and net income of $2.5 million in the first quarter of 2017.
• Fully diluted earnings per common share was $0.12 for the quarter ended March 31, 2018, compared with ($0.03) per share and $0.11 per share for the quarters ended December 31, 2017 and March 31, 2017, respectively.
• Interest and fees on loans was $10.9 million in the first quarter of 2018, an increase of $1.3 million, or 13.3%, over the first quarter of 2017.

MANAGEMENT COMMENTS

Rex L. Smith, III, President and Chief Executive Officer, stated, "The core operating metrics of the Company continue to show positive growth. We have structured the balance sheet to be risk averse for interest rate changes, as well as other economic factors. To that end, I am pleased with the diversity of the loan types in the portfolio and the continued growth rate of our variable rate loans, which increased our net interest margin for the quarter. Net interest income increased over $200,000 on a linked quarter basis."

Smith added, "As we move forward, I believe it is important for us to resist the temptation of growth for growth\'s sake, especially if it means irrational pricing on either side of the balance sheet, or relaxing our credit standards in any way. We can and will sustain an appropriate growth rate for the balance sheet that will translate to the earnings that we want to achieve for our shareholders."

Smith concluded, "Noninterest expense was up for the quarter, mainly due to a timing issue on our benefits cost. While this cost reduced earnings per share by two and a half cents on both a linked quarter and year-over-year basis, it will not be an on-going concern. Management is confident that we can continue to produce appropriate returns for the Company."

For earnings history and earnings-related data on Community Bankers (ESXB) click here.

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