CCB Bankshares, Inc. Announces Full-Year 2015 Results
SOUTH HILL, Va., Feb. 9, 2016 /PRNewswire/ -- CCB Bankshares, Inc. (OTCQB: CZYB) today announced its unaudited results of operations for 2015.
CCB Bankshares, Inc. is pleased to announce consolidated earnings to common shareholders of $142,740 for the fourth quarter of 2015 and $702,564 for the year ended December 31, 2015. Earnings per share for the fourth quarter and the year were $0.10 and $0.47 on a basic and fully dilutive basis, respectively. Pre-tax expenses of $62,443 related to formation of the holding company impacted consolidated earnings in the fourth quarter of 2015. Net earnings available to common shareholders of the bank were $207,266 for the fourth quarter of 2014 and $812,696 for the year ended December 31, 2014, or $0.14 and $0.54 per share on a basic and fully dilutive basis, respectively. Preferred dividend payments for 2015 totaled $24,333 compared to $40,000 for 2014, as a result of a partial redemption of preferred stock in the second quarter of 2015.
President and CEO James R. Black reported, "We had a successful year in many ways due to a dedicated CCB team. Our financial strength improved, we formed a bank holding company and expanded our branch presence further into northern North Carolina, just to name a few. For the year, we experienced solid double digit loan growth and increased pre-tax pre-provision earnings by 34.2% over 2014. Net income was down slightly as a result of reinvesting into our business along with provisions for loan growth and resolving two larger problem credits. We believe the charge-offs taken are not reflective of our embedded credit quality or our culture. In fact, nonperforming assets are at historic lows and well below our peer banks. Strategically, we continue to posture the company for higher long-term performance and are keenly focused on achieving moderate asset growth and enhancing core earnings. We are excited about presenting more positive results for 2016 and beyond."
In comparing the fourth quarter of 2015 to the same quarter in 2014, net interest income increased by $187,538 or 13.0%. This resulted from $15.4 million in net loan growth and a 24 basis point reduction in the weighted cost of funds. Noninterest income for the fourth quarter increased $30,691 or 15.5% over the same period in 2014. Mortgage origination fees and other service charge income contributed to the increase. Noninterest expense for the fourth quarter of 2015 was $1,458,891, compared to $1,316,337 for the same period of 2014. Expenses incurred as a result of the formation of the holding company and the addition of a full-service branch in Louisburg, NC contributed to the increase in noninterest expense. As a result of resolution of two problem loan relationships and loan growth in the second half of 2015, the Bank contributed $410 thousand to the allowance for 2015, with $200 thousand of that in the fourth quarter.
For the year ended December 31, 2015, net interest income increased $386,206 or 6.7%. Primary contributing factors include a net increase of $156,450 in loan interest income, and an overall increase of $293,788 when taking into consideration the collection of $137,338 in 2014 from the resolution of a non-performing loan. The weighted cost of funds at December 31, 2015 was 0.64%, a 24 basis point reduction from 0.88% at December 31, 2014. Growth in lower-cost core deposits and the ability to reprice higher-priced certificates fueled this improvement. The margin at December 31, 2015 was 3.77%, compared to 3.74% at December 31, 2014.
Noninterest income for 2015 was $832,458 compared to $800,350 for 2014, an increase of $32,108 or 4.0%. The Bank continues to focus on building relationships and further refinement of its noninterest income opportunities; however, assessment of fee income on deposit accounts in the community bank arena continues to be challenging. Fees for origination of mortgages for the secondary market for 2015 were $51,517, a 6.9% increase over 2014. Noninterest expense for 2015 was $5,512,188, compared to $5,315,986 in 2014. When factoring in expenses of $97,443 for the holding company, the company recognized a decrease of 1.9% in noninterest expense from 2014 to 2015. Net gains on the sale of other real estate in 2015 totaled $12,747 compared to a loss of $(10,113) in 2014. There were no write downs to other real estate in 2015 compared to $48,124 in 2014.
At December 31, 2015, total assets on a consolidated basis were $180.2 million, up $13.2 million, or 7.9% from December 31, 2014. Gross loans were $151.0 million, an increase of $15.4 million or 11.3% from December 31, 2014. Deposits totaled $153.5 million, an increase of $10.6 million or 7.4% since December 31, 2014. FHLB borrowings stood at $7.0 million compared to $2.0 million at December 31, 2014.
At December 31, 2015 the allowance for loan losses was $1,903,685 compared to $1,945,382 at December 31, 2014. Provision expense for 2015 was $410,000 as there was no provision expense taken in 2014. The allowance for loan losses represented 1.26% of loans as of December 31, 2015 compared to 1.43% on December 31, 2014. For 2015, net charge-offs equaled $451,697 or 0.32% of average loans compared to $60,363 or 0.05% of average loans one year ago. Nonperforming loans, which exclude performing troubled debt restructurings, equaled $515,952 or 0.34% of loans compared to $291,790 or 0.22% at December 31, 2014. There were no loans 90 days past due and still accruing interest on December 31, 2015.
At December 31, 2015, other real estate owned was $154,500 compared with $762,239 at year end 2014. There were no valuation write-downs in 2015, compared to $48,124 in 2014. In aggregate, nonperforming assets equaled $732,952 or 0.40% of total assets at December 31, 2015, down 30.5% from $1,054,029 or 0.63% of total assets at December 31, 2014. As of December 31, 2015, total adversely classified assets totaled $4.0 million, down $857 thousand from December 31, 2014.
As of December 31, 2015, total risk-based capital was 14.6% compared to 17.4% one year ago, and Tier 1 leverage was 10.7%, compared to 12.6% at December 31, 2014. On June 23, 2015, the company redeemed $3.0 million of preferred stock held as a condition of participation in the Small Business Lending Fund program. Even after this redemption, capital ratios are significantly higher than the minimum regulatory requirements for well capitalized institutions.
CCB Bankshares, Inc. is a Virginia state chartered bank holding company headquartered in South Hill, Virginia and parent company to Citizens Community Bank. It operates six branches, three in south central Virginia and three in northern North Carolina, as well as a loan production office in North Raleigh, North Carolina. For more information and additional financial data, please visit www.ccbsite.com.
This press release contains "forward-looking statements" that concern future events which are subject to risks and uncertainties. Any such statements are based on certain assumptions and analyses by the Bank and other factors it believes are appropriate in the circumstances and at the time at which such statements are made. The Bank's actual results, events and developments may differ materially from those contemplated by any forward-looking statement. The Bank has no responsibility to update such forward-looking statements.
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SOURCE CCB Bankshares, Inc.