RICHMOND, Va., April 26, 2018 /PRNewswire/ -- Community Bankers Trust Corporation (the "Company") (NASDAQ: ESXB), the holding company for Essex Bank (the "Bank"), today reported results for the first quarter of 2018. 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 .

, or 2.4%, during the first quarter of 2018 and grew , or 13.2%, since . Noninterest bearing deposits grew $21.0 million , or 16.3%, year-over-year.

, 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.

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.

for the quarter ended , compared with a loss of in the fourth quarter of 2017 and net income of 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.

for the quarter ended , compared with per share and per share for the quarters ended and , 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." RESULTS OF OPERATIONS Net income was $2.6 million for the first quarter of 2018, compared with a net loss of $640,000 in the fourth quarter of 2017 and net income of $2.5 million in the first quarter of 2017. Earnings per common share, basic and fully diluted, were $0.12 per share, ($0.03) per share and $0.11 per share for the three months ended March 31, 2018, December 31, 2017, and March 31, 2017, respectively. The increase of $101,000, or 4.1%, in net income, for the first quarter of 2018 compared with the first quarter of 2017 was primarily the result of a $1.1 million increase in interest income and a reduction of $536,000 in income tax expense. Offsetting these increases was an increase of $531,000 in interest expense and an increase of $1.1 million in noninterest expenses, including an increase of $703,000 in group benefit costs. Details on the drivers of these year-over-year changes are presented below. The increase of $3.2 million in net income on a linked quarter basis was driven by a decrease of $3.7 million in income tax expense. In the fourth quarter of 2017, the Company recorded a one-time charge of $3.5 million to income tax expense due to the re-measurement of its net deferred tax asset resulting from the new 21% tax rate established by the Tax Cuts and Jobs Act of 2017 enacted in December. Provision for loan losses improved net income on a linked quarter basis as no provision was recorded in the current quarter compared with $400,000 in the fourth quarter of 2017. Also, positively affecting net income was an increase in net interest income, which increased $218,000 on a linked quarter basis. Offsetting these increases to net income was an increase of $1.0 million, or 12.5%, in noninterest expenses, including an increase of $703,000 in group benefit costs. Linked quarter details are also provided below. The following table presents summary income statements for the three months ended March 31, 2018, December 31, 2017 and March 31, 2017. SUMMARY INCOME STATEMENT











(Dollars in thousands)

For the three months ended



31-Mar-18

31-Dec-17

31-Mar-17 Interest income $ 14,079 $ 13,758 $ 12,948 Interest expense

2,612

2,509

2,081 Net interest income

11,467

11,249

10,867 Provision for loan losses

-

400

- Net interest income after provision for loan losses 11,467

10,849

10,867 Noninterest income

1,082

1,093

1,035 Noninterest expense

9,415

8,366

8,333 Income before income taxes

3,134

3,576

3,569 Income tax expense

540

4,216

1,076 Net income (loss) $ 2,594 $ (640) $ 2,493













EPS Basic $ 0.12 $ (0.03) $ 0.11 EPS Diluted $ 0.12 $ (0.03) $ 0.11













Return on average assets, annualized

0.78%

(0.19%)

0.80% Return on average equity, annualized

8.30%

(2.02%)

8.56% Net Interest Income Linked Quarter Basis

Net interest income was $11.5 million for the quarter ended March 31, 2018 compared with $11.2 million for the quarter ended December 31, 2017. This is an increase of $218,000, or 1.9%. Interest income on a linked quarter basis increased $321,000, or 2.3%, to $14.1 million for the first quarter of 2018. Interest income with respect to loans, excluding PCI loans, increased $251,000, or 2.4%, during the first quarter when compared with the fourth quarter of 2017. This increase was partially attributed to continued loan growth, excluding PCI loans, coupled with higher rates. The yield on loans increased from 4.63% in the fourth quarter of 2017 to 4.68% in the first quarter of 2018. The average balance of loans, excluding PCI loans, increased $32.2 million, or 3.5%, on a linked quarter basis. Interest income with respect to PCI loans was $1.4 million in each of the fourth quarter of 2017 and the first quarter of 2018. Interest income on securities increased $62,000 on a linked quarter basis. Securities income equaled $1.9 million on a tax-equivalent basis for the first quarter of 2018, which was a decrease of $90,000 from the fourth quarter of 2017. Actual income increased $62,000 while tax-equivalent income decreased $90,000 as a result of the decreased tax benefit derived from bank-qualified tax-exempt municipal securities from the implementation of the Tax Cut and Jobs Act. The overall tax-equivalent yield on the securities portfolio was 2.98% in the first quarter of 2018, based on a 21% tax rate, and 3.07% in the fourth quarter of 2017, based on a 34% tax rate. Interest expense of $2.6 million in the first quarter of 2018 was an increase of $103,000 on a linked quarter basis. Interest on deposits only increased $22,000, or 1.0%. However, interest on borrowed funds increased by $81,000, or 20.9%. Average interest bearing balances of Federal Home Loan Bank and other borrowings increased by $17.3 million from the fourth quarter of 2017 to the first quarter of 2018. The cost on these borrowings increased from 1.68% in the fourth quarter of 2017 to 1.74% in the first quarter of 2018. The Company's cost of interest bearing liabilities of 1.00% in the first quarter of 2018 was an increase of four basis points from the prior quarter. With the changes in interest income noted above, the tax-equivalent net interest margin improved from 3.72% in the fourth quarter of 2017 to 3.76% in the first quarter of 2018. Likewise, the interest spread increased from 3.56% to 3.60% on a linked quarter basis. Year-Over-Year

Net interest income increased $600,000, or 5.5%, from the first quarter of 2017 to the first quarter of 2018. Net interest income was $11.5 million in the first quarter of 2018 compared with $10.9 million for the same period in 2017. Interest income increased $1.1 million, or 8.7%, over this time period. The increase in interest income was generated by an increase of $86.7 million, or 7.4%, in the level of earning assets. The yield on earning assets decreased from 4.61% in the first quarter of 2017 to 4.60% in the first quarter of 2018. The average balance of loans, excluding PCI loans, increased $104.2 million, or 12.4%, from $839.2 million in the first quarter of 2017 to $943.4 million in the first quarter of 2018. Interest income on securities was $1.8 million in each of the first quarter of 2018 and first quarter of 2017. On a tax-equivalent basis, the yield on investment securities was 2.98% in the first quarter of 2018, based on a 21% tax rate, and 3.22% in the first quarter of 2017, based on a 34% tax rate. Interest on PCI loans was $1.4 million in the first quarter of 2018 compared with $1.5 million in the first quarter of 2017. The average balance of the PCI portfolio declined $7.4 million during the year-over-year comparison period. Interest expense increased $531,000, or 25.5%, when comparing the first quarter of 2017 and the first quarter of 2018. Interest expense on deposits increased $364,000, or 20.5%, as the average balance of interest bearing deposits increased $41.3 million, or 4.6%. The increase in deposit cost was driven by an increase in NOW and MMDA average balances, which increased a combined $62.5 million year-over-year. Likewise, the cost of these balances increased $189,000, from 0.24% to 0.45%, over the same time frame. Higher cost time deposit balances declined over the comparison period by $22.4 million; however, expense on this category increased by $176,000, resulting in an increase in cost from 1.11% to 1.29%. FHLB and other borrowings increased, on average, $15.6 million year-over-year, and there was an increase in the rate paid, from 1.33% in the first quarter of 2017 to 1.74% in the first quarter of 2018. This resulted in an increase in the expense of $162,000, to $458,000 in the first quarter of 2018. The average balance of FHLB and other borrowings was $105.5 million in the first quarter of 2018. Overall, the Bank's cost of interest bearing liabilities increased 15 basis points, from 0.85% in the first quarter of 2017 to 1.00% in the first quarter of 2018. The tax-equivalent net interest margin decreased 12 basis points, from 3.88% in the first quarter of 2017 to 3.76% in the first quarter of 2018. Likewise, the interest spread decreased from 3.76% to 3.60% over the same time period. The decrease in the margin was precipitated by the increase in the cost of interest bearing liabilities without a corresponding increase in the yield on earning assets. The following table compares the Company's net interest margin, on a tax-equivalent basis, for the three months ended March 31, 2018, December 31, 2017 and March 31, 2017. NET INTEREST MARGIN

















(Dollars in thousands)

For the three months ended





31-Mar-18



31-Dec-17



31-Mar-17

Average interest earning assets $ 1,253,752

$ 1,233,754

$ 1,167,100

Interest income $ 14,079

$ 13,758

$ 12,948

Interest income - tax-equivalent $ 14,233

$ 14,065

$ 13,256

Yield on interest earning assets

4.60 % 4.52 %

4.61 % Average interest bearing liabilities $ 1,054,282

$ 1,036,542

$ 997,188

Interest expense $ 2,612

$ 2,509

$ 2,081

Cost of interest bearing liabilities

1.00 % 0.96 % 0.85 % Net interest income $ 11,467

$ 11,249

$ 10,867

Net interest income - tax-equivalent $ 11,621

$ 11,556

$ 11,175

Interest spread

3.60 % 3.56 % 3.76 % Net interest margin

3.76 % 3.72 % 3.88 %





















Provision for Loan Losses The Company records a separate provision for loan losses for its loan portfolio, excluding PCI loans, and the PCI loan portfolio. There was no provision for loan losses on the loan portfolio, excluding PCI loans, during either of the first quarter of 2018 or the first quarter of 2017. The absence of a provision in the first quarter of 2018 was the direct result of nominal charge-offs and stable asset quality. There was a provision for loan losses of $400,000 in the fourth quarter of 2017. The fourth quarter 2017 provision was recorded to support loan growth of $52.0 million during the quarter. There was no provision for loan losses on the PCI loan portfolio during the first quarter of 2018, the fourth quarter of 2017 or the first quarter of 2017. Additional discussion of loan quality is presented below. Noninterest Income Linked Quarter Basis

Noninterest income was $1.1 million for the first quarter of 2018, an $11,000 decrease compared with $1.1 million for the fourth quarter of 2017. Other noninterest income of $128,000 was a decrease of $49,000 from the fourth quarter of 2017. The linked quarter change was primarily attributable to a decrease of $28,000 in commission income and a decrease of $23,000 in dividend income. Partially offsetting the decrease in other noninterest income was an increase of $32,000, or 40.5%, in mortgage loan income, which was $111,000 in the first quarter of 2018, compared with $79,000 in the fourth quarter of 2017. Nominal changes on a linked quarter basis were an increase of $9,000 in service charges and fees, which were $581,000 in the first quarter of 2018, and a decline of $3,000 in income on bank owned life insurance, which was $232,000 for the period. Year-Over-Year

Noninterest income increased $47,000, or 4.5%, from $1.0 million in the first quarter of 2017 to $1.1 million in the first quarter of 2018. Mortgage loan income increased $78,000, or 236.4%, from $33,000 in the first quarter of 2017 to $111,000 in the first quarter of 2018. The increase in mortgage loan income reflects continued momentum from a shift that began in the fourth quarter of 2016 to a less expensive platform program. Service charges and fees increased $56,000, or 10.7%, and were $581,000 in the first quarter of 2018 compared with $525,000 in the first quarter of 2017. Gains on securities transactions declined $65,000 over this time frame and were $30,000 in the first quarter of 2018 versus $95,000 in the first quarter of 2017. There has been less activity in the securities portfolio in 2018 as the Company maintains the level of securities to total assets near a target close to the 18.9% reflected at March 31, 2018. Other noninterest income decreased from $148,000 in the first quarter of 2017 to $128,000 in the first quarter of 2018. Within other noninterest income, brokerage fees and commissions declined by $18,000 year-over-year. Noninterest Expenses Linked Quarter Basis

Noninterest expenses totaled $9.4 million for the first quarter of 2018, as compared with $8.4 million for the fourth quarter of 2017, an increase of $1.0 million, or 12.54%. Salaries and employee benefits increased $860,000, or 17.1% on a linked quarter basis. The vast majority of this increase was related to higher group benefit costs, which increased by $703,000. Salaries and employee benefits in the first quarter of 2018 were $5.9 million and also include employee costs from a new branch opened in Lynchburg, Virginia in December 2017. Other operating expenses increased $134,000 on a linked quarter basis, from $1.5 million in the fourth quarter of 2017 to $1.6 million in the first quarter of 2018. FDIC assessment increased $30,000, from $176,000 in the fourth quarter of 2017 to $206,000 in the first quarter of 2018. Data processing fees of $486,000 in the first quarter of 2018 represented an increase of $29,000 over the linked quarter. Equipment and occupancy expenses increased $19,000 and $11,000, respectively, on a linked quarter basis and were driven by the new branch opened in December 2017 Other real estate expenses, net, declined $14,000 on a linked quarter basis and were $50,000 in the first quarter of 2018. Year-Over-Year

Noninterest expenses increased $1.1 million, or 13.0%, when comparing the first quarter of 2018 to the same period in 2017. Again, the increase year-over-year was largely attributable to abnormally higher than usual group benefit costs, which increased by $703,000 in the first quarter of 2018 over the same period in 2017. Salaries and employee benefits increased $1.2 million, or 26.0%, from $4.7 million in the first quarter of 2017 to $5.9 million in the first quarter of 2018. Other operating expenses increased $207,000, or 14.4%, and were $1.6 million in the first quarter of 2018 compared with $1.4 million for the same period in 2017. Occupancy expenses increased $80,000 year-over-year and were $812,000 in the first quarter of 2018 compared with $732,000 in the first quarter of 2017. Since the beginning of 2017, the Bank has opened three full service banking facilities, West Broad Marketplace in the Short Pump area of Richmond and two offices in Lynchburg. These openings also resulted in an increase year-over-year in equipment expenses, which increased $30,000, from $284,000 to $314,000. Other real estate expenses, net, of $50,000 in the first quarter of 2018 represents a year-over-year increase of $23,000. FDIC assessment was $206,000 in the first quarter of 2018 compared with $201,000 for the same period in 2017. Data processing fees of $486,000 in the first quarter of 2018 compared with $488,000 for the same period in 2017. Offsetting these increases was a decline of $477,000 in amortization of intangibles, which expired during 2017 and was $0 in the first quarter of 2018. The following table compares the Company's other operating expenses included in noninterest expenses for the three months ended March 31, 2018, December 31, 2017 and March 31, 2017. OTHER OPERATING EXPENSES









(Dollars in thousands)

For the three months ended



31-Mar-18

31-Dec-17

31-Mar-17 Bank franchise tax $ 179 $ 158 $ 158 Telephone and internet line

243

172

175 Stationery, printing and supplies

178

153

198 Marketing expense

178

155

151 Credit expense

91

75

105 Outside vendor fees

145

200

113 Other expenses

635

602

542 Total other operating expenses $ 1,649 $ 1,515 $ 1,442 Income Taxes Income tax expense was $540,000 for the three months ended March 31, 2018, compared with income tax expense of $4.2 million and $1.1 million for the fourth and first quarters of 2017, respectively. The large expense in the fourth quarter of 2017 was attributable to recording a $3.5 million charge related to the re-measurement of net deferred tax assets from the passage of the Tax Cuts and Jobs Act. The effective tax rate for the first quarter of 2018 was 17.2% versus 30.1% for the first quarter of 2017. The decrease in the Company's effective tax rate results principally from the decrease in its applicable federal corporate tax rate from 34% to 21% as a result of the Tax Cuts and Jobs Act. FINANCIAL CONDITION Total assets increased $17.0 million, or 1.3%, to $1.353 billion at March 31, 2018 when compared to December 31, 2017. Total assets have increased $90.5 million, or 7.2%, since March 31, 2017. Total loans, excluding PCI loans, were $964.3 million at March 31, 2018, increasing $22.3 million, or 2.4%, from year end 2017 and $112.1 million, or 13.2%, from March 31, 2017. Total PCI loans were $42.2 million at March 31, 2018 versus $44.3 million at the prior quarter end and $49.7 million at March 31, 2017. During the first quarter of 2018, commercial loans grew $11.4 million, or 7.2%, and were $170.4 million at March 31, 2018. Consumer installment loans grew $8.7 million and were $13.9 million at March 31, 2018. On March 30, 2018, the Company purchased an in-market, high quality consumer auto loan pool totaling $9.0 million. The addition of these loans will bring an increase in diversification to the portfolio. Commercial mortgage loans on real estate grew by $5.2 million, or 1.4%, and were $371.5 million at March 31, 2018. Residential 1-4 family loans declined $4.8 million, or 2.1%, during the first quarter of 2018 and were $222.7 million at March 31, 2018. The Company's loan portfolio exhibits balanced growth when comparing March 31, 2018 and March 31, 2017. Total loans grew $112.1 million or 13.2%, over the time frame with commercial loans growing by $39.7 million, or 30.4%, followed by growth of $27.9 million, or 8.1%, in commercial mortgage loans on real estate, $13.4 million, or 13.9%, in construction and land development loans, $12.2 million, or 5.8%, in residential 1-4 family loans, $10.5 million, or 21.1%, in multifamily loans and $8.6 million, or 160.8%, in consumer installment loans. The following table shows the composition of the Company's loan portfolio, excluding PCI loans, at March 31, 2018, December 31, 2017 and March 31, 2017. LOANS (excluding PCI loans)























(Dollars in thousands) 31-Mar-18

31-Dec-17

31-Mar-17





Amount % of

Loans

Amount % of

Loans

Amount % of

Loans

Mortgage loans on real estate:

























Residential 1-4 family $ 222,717 231.0 % $ 227,542 24.16 % $ 210,517 24.71 %

Commercial

371,494 38.52



366,331 38.89



343,604 40.32



Construction and land development

109,534 11.36



107,814 11.44



96,152 11.28



Second mortgages

7,689 0.80



8,410 0.89



7,724 0.91



Multifamily

59,920 6.21



59,024 6.27



49,469 5.80



Agriculture

7,424 0.77



7,483 0.79



7,449 0.87



Total real estate loans

778,778 80.76



776,604 82.44



714,915 83.89

Commercial loans

170,445 17.67



159,024 16.88



130,729 15.34

Consumer installment loans

13,878 1.44



5,169 0.55



5,321 0.62

All other loans

1,210 0.13



1,221 0.13



1,261 0.15



Gross loans

964,311 100.00 %

942,018 100.00 %

852,226 100.00 % Allowance for loan losses

(8,968)





(8,969)





(9,513)



Loans, net of unearned income $ 955,343



$ 933,049



$ 842,713



The Company's securities portfolio, excluding restricted equity securities, declined $4.3 million since year end 2017 to total $246.7 million at March 31, 2018. Securities balances declined $13.5 million since March 31, 2017. Net gains of $30,000 were recognized during each of the first quarter of 2018 and the fourth quarter of 2017 through sales and call activity, and $95,000 was recognized during the first quarter of 2017. The Company actively manages the portfolio to improve its liquidity and maximize the return within the desired risk profile. The Company had cash and cash equivalents of $21.3 million, $22.0 million and $23.9 million at March 31, 2018, December 31, 2017 and March 31, 2017, respectively. There were federal funds purchased of $20.0 million and federal funds sold of $152,000 at March 31, 2018 compared with federal funds purchased of $4.8 million at December 31, 2017 and federal funds sold of $132,000 at March 31, 2017. The increase in federal funds purchased at March 31, 2018 was used to fund loan growth in the first quarter of 2018 and is anticipated to be short-term in nature. Interest bearing bank balances were $9.1 million at March 31, 2018 compared with $7.3 million at December 31, 2017 and $12.0 million at March 31, 2017. The following table shows the composition of the Company's securities portfolio, excluding equity securities, at March 31, 2018, December 31, 2017 and March 31, 2017. SECURITIES PORTFOLIO























(Dollars in thousands)

31-Mar-18

31-Dec-17

31-Mar-17



Amortized

Cost

Fair

Value

Amortized

Cost

Fair

Value

Amortized

Cost

Fair

Value Securities Available for Sale























U.S. Treasury issue and other























U.S. Government agencies $ 37,978 $ 37,601 $ 40,473 $ 40,256 $ 49,637 $ 48,954 U.S Government sponsored agencies

9,168

9,227

9,247

9,278

2,921

2,862 State, county, and municipal

123,949

123,574

124,032

125,760

125,731

127,087 Corporate and other bonds

7,702

7,814

7,323

7,460

16,246

16,061 Mortgage backed securities - U.S. Government agencies

5,456

5,272

5,551

5,442

3,606

3,476 Mortgage backed securities - U.S. Government sponsored agencies

19,207

18,677

16,985

16,638

15,519

15,273 Total securities available for sale $ 203,460 $ 202,165 $ 203,611 $ 204,834 $ 213,660 $ 213,713

























































31-Mar-18

31-Dec-17

31-Mar-17



Amortized

Cost

Fair

Value

Amortized

Cost

Fair

Value

Amortized

Cost

Fair

Value Securities Held to Maturity























U.S Government sponsored agencies $ 10,000 $ 9,745 $ 10,000 $ 9,845 $ 10,000 $ 9,876 State, county, and municipal

34,111

34,405

35,678

36,567

35,831

36,321 Mortgage backed securities - U.S. Government agencies

423

428

468

476

669

684 Total securities held to maturity $ 44,534 $ 44,578 $ 46,146 $ 46,888 $ 46,500 $ 46,881 Interest bearing deposits at March 31, 2018 were $946.3 million, an increase of $3.5 million from December 31, 2017 and $22.7 million greater than at March 31, 2017. As a result primarily of new account promotions at the three offices opened during 2017, money market deposit accounts grew $45.4 million, or 44.0%, from $103.0 million at March 31, 2017 to $148.4 million at March 31, 2018. Money market balances grew $5.0 million since December 31, 2017. NOW accounts, although decreasing $2.8 million during the first quarter of 2018, grew $23.3 million, or 17.8%, since March 31, 2017. Time deposits $250,000 and over increased $3.9 million during the first quarter of 2018 but declined $30.4 million since March 31, 2017. Driving the changes for both quarters were brokered deposits, which increased $2.4 million during the first quarter of 2018 but declined $31.7 million since March 31, 2017. The increase in money market and NOW account balances has allowed the Bank to replace wholesale funding with core retail deposits. Time deposits less than or equal to $250,000 declined $2.3 million during the first quarter of 2018 and declined $16.6 million since March 31, 2017. The following table compares the mix of interest bearing deposits at March 31, 2018, December 31, 2017 and March 31, 2017. INTEREST BEARING DEPOSITS











(Dollars in thousands)















31-Mar-18

31-Dec-17

31-Mar-17 NOW $ 154,236 $ 157,037 $ 130,971 MMDA

148,404

143,363

103,042 Savings

93,724

93,980

92,683 Time deposits less than or equal to $250,000

435,481

437,810

452,075 Time deposits $250,000 and over

114,438

110,546

144,859 Total interest bearing deposits $ 946,283 $ 942,736 $ 923,630 FHLB advances were $101.1 million at March 31, 2018, compared with $101.4 million at December 31, 2017 and $81.7 million at March 31, 2017. Shareholders' equity was $125.0 million at March 31, 2018, $124.0 million at December 31, 2017 and $117.7 million at March 31, 2017. Shareholder's equity to assets was 9.2% at March 31, 2018 and 9.3% at each of December 31, 2017 and March 31, 2017. Total shareholders' equity increased through retained earnings from net income but was negatively impacted by the fourth quarter write-down of the deferred tax asset and by the rise in interest rates, which impacted accumulated other comprehensive (loss) income due to the effect on the fair value of available-for-sale securities. Asset Quality – non-covered assets Nonaccrual loans were $10.1 million at March 31, 2018, increasing $1.1 million from December 31, 2017 and increasing $1.0 million from March 31, 2017. The increase from March 31, 2017 to March 31, 2018 was 11.0%. The following chart shows the level of nonaccrual loans, classified loans and criticized loans over the last five quarters. ASSET QUALITY









(Dollars in thousands)

2018

2017



31-Mar-18

31-Dec-17

30-Sep-17

30-Jun-17

31-Mar-17 Nonaccrual loans $ 10,090 $ 9,026 $ 12,677 $ 11,514 $ 9,091 Criticized (special mention) loans

19,526

9,555

8,200

10,523

13,416 Classified (substandard) loans

14,243

13,264

16,885

17,191

18,500 Other real estate owned

3,166

2,791

2,710

2,387

3,569 Total classified and criticized assets $ 36,935 $ 25,610 $ 27,795 $ 30,101 $ 35,485 Total non-performing assets totaled $13.3 million at March 31, 2018 compared with $11.8 million at December 31, 2017. Total nonperforming assets increased $484,000, or 3.8%, since March 31, 2017. There were net charge-offs of $1,000 in the first quarter of 2018 and $98,000 in the fourth quarter of 2017 and net recoveries of $20,000 in the first quarter of 2017. The allowance for loan losses equaled 88.9% of nonaccrual loans at March 31, 2018, compared with 99.4% at December 31, 2017 and 104.6% at March 31, 2017. The ratio of nonperforming assets to loans and OREO was 1.37% at March 31, 2018 compared with 1.25% at December 31, 2017 and 1.49% at March 31, 2017. The following table reconciles the activity in the Company's non-covered allowance for loan losses, by quarter, for the past five quarters. ALLOWANCE FOR LOAN LOSSES





















(Dollars in thousands)

2018

2017



First



Fourth

Third

Second

First



Quarter



Quarter

Quarter

Quarter

Quarter Allowance for loan losses:





















Beginning of period $ 8,969

$ 8,667 $ 9,489 $ 9,513 $ 9,493 Provision for loan losses

-



400

150

-

- Net recoveries (charge-offs)

(1)



(98)

(972)

(24)

20 End of period $ 8,968

$ 8,969 $ 8,667 $ 9,489 $ 9,513 The following table sets forth selected asset quality data, excluding PCI loans, and ratios for the dates indicated. ASSET QUALITY (excluding PCI loans)































(Dollars in thousands)

2018

2017





31-Mar-18



31-Dec-17

30-Sep-17 30-Jun-17 31-Mar-17

Nonaccrual loans $ 10,090

$ 9,026

$ 12,677

$ 11,514

$ 9,091



Loans past due over 90 days and accruing interest

-



-



-



-



112



Total nonperforming loans

10,090



9,026



12,677



11,514



9,203



Other real estate owned

3,166



2,791



2,710



2,387



3,569



Total nonperforming assets $ 13,256

$ 11,817

$ 15,387

$ 13,901

$ 12,772





































Allowance for loan losses to loans

0.93 %

0.95 % 0.97 %

1.10 %

1.12 %

Allowance for loan losses to nonaccrual loans

88.88



99.37



68.37



82.41



104.64



Nonperforming assets to loans and other real estate

1.37



1.25



1.72



1.60



1.49



Net charge-offs/(recoveries) for quarter to average loans, annualized

- %

0.04 % 0.45 %

0.01 %

(0.01) %

A further breakout of nonaccrual loans, excluding PCI loans, at March 31, 2018, December 31, 2017, and March 31, 2017 is below. NONACCRUAL LOANS (excluding PCI loans)















(Dollars in thousands)

31-Mar-18

31-Dec-17

31-Mar-17





Amount

Amount

Amount Mortgage loans on real estate:



















Residential 1-4 family

$ 1,985

$ 1,962

$ 3,104

Commercial



1,466



1,498



1,588

Construction and land development



5,554



4,277



4,304

Second mortgages



-



-



-

Agriculture



67



68



-

Total real estate loans

$ 9,072

$ 7,805

$ 8,996 Commercial loans



1,014



1,214



53 Consumer installment loans



4



7



42

Gross loans

$ 10,090

$ 9,026

$ 9,091 Capital Requirements The Company's ratio of total risk-based capital was 12.6% at March 31, 2018 compared with 12.7% at December 31, 2017. The tier 1 risk-based capital ratio was 11.8% at March 31, 2018 and 11.9% at December 31, 2017. The Company's tier 1 leverage ratio was 9.8% at March 31, 2018 and 9.7% at December 31, 2017. All capital ratios exceed regulatory minimums to be considered well capitalized. BASEL III introduced the common equity tier 1 capital ratio, which was 11.4% at March 31, 2018 and 11.5% at December 31, 2017. Earnings Conference Call and Webcast The Company will host a conference call for interested parties on Thursday, April 26, 2018, at 10:00 a.m. Eastern Time to discuss the financial results for the first quarter of 2018. The public is invited to listen to this conference call by dialing 866-374-8379 at least five minutes prior to the call. Interested parties may also listen to this conference call through the internet by accessing the "Corporate Overview – Corporate Profile" page of the Company's internet site at www.cbtrustcorp.com. A replay of the conference call will be available from 12:00 noon Eastern Time on April 26, 2018, until 9:00 a.m. Eastern Time on May 9, 2018. The replay will be available by dialing 877-344-7529 and entering access code 10119079 or through the internet by accessing the "Corporate Overview – Corporate Profile" page of the Company's internet site at www.cbtrustcorp.com. About Community Bankers Trust Corporation and Essex Bank Community Bankers Trust Corporation is the holding company for Essex Bank, a Virginia state bank with 26 full-service offices, 20 of which are in Virginia and six of which are in Maryland. The Bank also operates one loan production office in Virginia. Additional information on the Bank is available on the Bank's website at www.essexbank.com. For information on Community Bankers Trust Corporation, please visit its website at www.cbtrustcorp.com. Forward-Looking Statements This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. These forward-looking statements include, without limitation, statements with respect to the Company's operations, performance, future strategy and goals. Actual results may differ materially from those included in the forward-looking statements due to a number of factors, including, without limitation, the effects of and changes in the following: the quality or composition of the Company's loan or investment portfolios, including collateral values and the repayment abilities of borrowers and issuers; assumptions that underlie the Company's allowance for loan losses; general economic and market conditions, either nationally or in the Company's market areas; the interest rate environment; competitive pressures among banks and financial institutions or from companies outside the banking industry; real estate values; the demand for deposit, loan and investment products and other financial services; the demand, development and acceptance of new products and services; the performance of vendors or other parties with which the Company does business; time and costs associated with de novo branching, acquisitions, dispositions and similar transactions; the realization of gains and expense savings from acquisitions, dispositions and similar transactions; consumer profiles and spending and savings habits; levels of fraud in the banking industry; the level of attempted cyber-attacks in the banking industry; the securities and credit markets; costs associated with the integration of banking and other internal operations; the soundness of other financial institutions with which the Company does business; inflation; technology; and legislative and regulatory requirements. Many of these factors and additional risks and uncertainties are described in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 and other reports filed from time to time by the Company with the Securities and Exchange Commission. This press release speaks only as of its date, and the Company disclaims any duty to update the information in it. COMMUNITY BANKERS TRUST CORPORATION













CONSOLIDATED BALANCE SHEETS













UNAUDITED CONDENSED













(Dollars in thousands)

















31-Mar-18

31-Dec-17

31-Mar-17

Assets













Cash and due from banks $ 12,013 $ 14,642 $ 11,720

Interest bearing bank deposits

9,141

7,316

12,002

Federal funds sold

152

-

132

Total cash and cash equivalents

21,306

21,958

23,854

















Securities available for sale, at fair value

202,165

204,834

213,713

Securities held to maturity, at cost

44,534

46,146

46,500

Equity securities, restricted, at cost

9,356

9,295

8,177

Total securities

256,055

260,275

268,390

















Loans

964,311

942,018

852,226

Purchased credit impaired (PCI) loans

42,215

44,333

49,738

Allowance for loan losses

(8,968)

(8,969)

(9,513)

Allowance for loan losses – PCI loans

(200)

(200)

(200)

Net loans

997,358

977,182

892,251

















Bank premises and equipment, net

29,761

30,198

28,588

Bank premises and equipment held for sale

525

-

-

Other real estate owned

3,166

2,791

3,569

Bank owned life insurance

28,282

28,099

27,531

Core deposit intangibles, net

-

-

421

Other assets

16,779

15,687

18,117

Total assets $ 1,353,232 $ 1,336,190 $ 1,262,721

















Liabilities













Deposits:













Noninterest bearing $ 150,037 $ 153,028 $ 129,042

Interest bearing

946,283

942,736

923,630

Total deposits

1,096,320

1,095,764

1,052,672

















Federal funds purchased

20,000

4,849

-

Federal Home Loan Bank advances

101,061

101,429

81,692

Trust preferred capital notes

4,124

4,124

4,124

Other liabilities

6,683

6,021

6,520

Total liabilities $ 1,228,188 $ 1,212,187 $ 1,145,008

















Shareholders' Equity













Common stock (200,000,000 shares authorized $0.01 par value; 22,084,193, 22,072,523, 21,970,773, shares issued and outstanding, respectively)

221

221

220

Additional paid in capital

147,935

147,671

146,852

Retained deficit

(21,338)

(23,932)

(28,635)

Accumulated other comprehensive (loss) income

(1,774)

43

(724)

Total shareholders' equity

125,044

124,003

117,713

Total liabilities and shareholders' equity $ 1,353,232 $ 1,336,190 $ 1,262,721

COMMUNITY BANKERS TRUST CORPORATION



























CONSOLIDATED STATEMENTS OF OPERATIONS



























UNAUDITED CONDENSED



















(Dollars in thousands) Three months ended

31-Mar-18

31-Dec-17

30-Sep-17

30-Jun-17

31-Mar-17 Interest and dividend income



















Interest and fees on loans $ 10,876 $ 10,625 $ 10,127 $ 9,952 $ 9,597 Interest and fees on PCI loans

1,398

1,378

1,423

1,453

1,479 Interest on federal funds sold

-

-

1

-

- Interest on deposits in other banks

40

53

65

52

26 Interest and dividends on securities



















Taxable

1,186

1,105

1,171

1,157

1,249 Nontaxable

579

597

602

606

597 Total interest and dividend income

14,079

13,758

13,389

13,220

12,948 Interest expense



















Interest on deposits

2,143

2,121

2,053

1,944

1,779 Interest on borrowed funds

469

388

310

302

302 Total interest expense

2,612

2,509

2,363

2,246

2,081





















Net interest income

11,467

11,249

11,026

10,974

10,867





















Provision for loan losses

-

400

150

-

- Net interest income after provision for loan losses

11,467

10,849

10,876

10,974

10,867





















Noninterest income



















Service charges and fees

581

572

559

582

525 Gain on securities transactions, net

30

30

48

37

95 Income on bank owned life insurance

232

235

235

235

234 Mortgage loan income

111

79

58

71

33 Other

128

177

145

155

148 Total noninterest income

1,082

1,093

1,045

1,080

1,035





















Noninterest expense



















Salaries and employee benefits

5,898

5,038

4,998

4,886

4,682 Occupancy expenses

812

801

857

740

732 Equipment expenses

314

295

305

260

284 FDIC assessment

206

176

185

164

201 Data processing fees

486

457

501

477

488 Amortization of intangibles

-

20

62

339

477 Other real estate expenses, net

50

64

37

34

27 Other operating expenses

1,649

1,515

1,641

1,528

1,442 Total noninterest expense

9,415

8,366

8,586

8,428

8,333





















Income before income taxes

3,134

3,576

3,335

3,626

3,569 Income tax expense

540

4,216

919

692

1,076 Net income (loss) $ 2,594 $ (640) $ 2,416 $ 2,934 $ 2,493



































COMMUNITY BANKERS TRUST CORPORATION



























NET INTEREST MARGIN ANALYSIS



























AVERAGE BALANCE SHEETS



























(Dollars in thousands)





































Three months ended March 31, 2018



Three months ended March 31, 2017





Average

Balance

Sheet

Interest

Income /

Expense

Average

Rates

Earned /

Paid



Average

Balance

Sheet

Interest

Income /

Expense

Average

Rates

Earned /

Paid

ASSETS:



































Loans, including fees $ 943,398

$ 10,876

4.68 %

$ 839,167

$ 9,597

4.64 %

PCI loans, including fees

43,331



1,398

12.91





50,777



1,479

11.65



Total loans

986,729



12,274

5.05





889,944



11,076

5.05



Interest bearing bank balances

9,060



40

1.80





9,134



26

1.13



Federal funds sold

58



-

1.55





49



-

0.88



Securities (taxable)

176,563



1,186

2.69





183,247



1,249

2.73



Securities (tax exempt)(1)

81,342



733

3.60





84,726



905

4.27



Total earning assets

1,253,752



14,233

4.60





1,167,100



13,256

4.61



Allowance for loan losses

(9,177)















(9,722)













Non-earning assets

88,610















88,613













Total assets $ 1,333,185













$ 1,245,991

















































LIABILITIES AND



































SHAREHOLDERS' EQUITY



































Demand - interest bearing $ 301,313

$ 331

0.45



$ 238,829

$ 142

0.24



Savings

93,107



60

0.26





91,936



61

0.27



Time deposits

551,987



1,752

1.29





574,344



1,576

1.11



Total interest bearing deposits

946,407



2,143

0.92





905,109



1,779

0.80



Short-term borrowings

2,343



11

1.95





2,104



6

1.08



FHLB and other borrowings

105,532



458

1.74





89,975



296

1.33



Total interest bearing liabilities

1,054,282



2,612

1.00





997,188



2,081

0.85



Noninterest bearing deposits

148,371















126,827













Other liabilities

5,542















5,414













Total liabilities

1,208,195















1,129,429













Shareholders' equity

124,990















116,562













Total liabilities and



































Shareholders' equity $ 1,333,185













$ 1,245,991













Net interest earnings





$ 11,621













$ 11,175







Interest spread











3.60 %













3.76 %

Net interest margin











3.76 %













3.88 %







































Tax-equivalent adjustment:



































Securities





$ 155













$ 308











































(1) Income and yields are reported on a tax equivalent basis assuming a federal tax rate of 21% for 2018 and 34% for 2017.





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