Community Bankers (ESXB) Tops Q2 EPS by 7c

Community Bankers (NASDAQ: ESXB) reported Q2 EPS of $0.24, $0.07 better than the analyst estimate of $0.17.

FINANCIAL HIGHLIGHTS

• Net income was $5.5 million for the quarter ended December 31, 2020, compared with net income of $4.5 million in the third quarter of 2020 and net income of $4.0 million in the fourth quarter of 2019.
• Net income for the year ended December 31, 2020 was $15.5 million, a decrease of $157,000 from $15.7 million for the year ended December 31, 2019, as the provision for loan losses of $4.2 million in 2020 was $3.9 million higher than in 2019 due to the economic uncertainties created by the coronavirus (COVID-19) pandemic.
• Net interest income was $14.0 million for the fourth quarter of 2020, a linked quarter increase of $1.3 million, or 10.1%.
• Interest on deposits declined $463,000 on a linked quarter basis and the associated cost declined from 0.96% to 0.77%.
• Diluted earnings per share were $0.24 for the fourth quarter of 2020 and $0.69 for the year ended December 31, 2020 compared with diluted earnings per share of $0.18 for the fourth quarter of 2019 and $0.70 for the year ended December 31, 2019.
• Return on average assets was 1.32% for the fourth quarter of 2020 and 0.99% for the year ended December 31, 2020 compared with return on average assets of 1.14% for the fourth quarter of 2019 and 1.11% for the year ended December 31, 2019.
• Return on average equity was 12.64% for the fourth quarter of 2020 and 9.58% for the year ended December 31, 2020 compared with 10.42% for the fourth quarter of 2019 and 10.63% for the year ended December 31, 2019.

MANAGEMENT COMMENTS

Rex L. Smith, III, President and Chief Executive Officer, stated, "Given the volatile economic environment resulting from the COVID-19 pandemic, we are pleased with the Company's results for the fourth quarter and the year 2020. After taking a prudent and cautious approach to the loan loss provision during the first and second quarters of 2020 that reflected the heightened risks associated with the pandemic, our net income has rebounded meaningfully as we have seen improving economic conditions in our markets. Our team has delivered robust year-over-year growth and improvement in several key areas including loan production, deposit mix, asset quality, and noninterest income. With regards to asset quality, while we have seen marked improvements from our forecasts earlier in 2020, we continue to vigilantly monitor credit quality given the risk of continued stress in certain sectors. On the interest expense front, we are currently benefitting from the impact of lower rates driving a reduction in our deposit expenses."

Smith concluded, "Our Associates worked hard in difficult circumstances, to help our customers and build strong, lasting relationships that not only enhance our franchise but also the communities that we serve. We are optimistic about 2021, and we will continue to look at ways to enhance shareholder value, including stock repurchases and our common stock dividend."

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

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