PRESS RELEASE - FOR IMMEDIATE DISTRIBUTION
Dated: April 18, 2022
Solid First Quarter Earnings Reported by Citizens Bancorp of Virginia, Inc.
Blackstone, Virginia Citizens Bancorp of Virginia, Inc. (the "Company") (OTCBB: CZBT), the parent company of Citizens Bank and Trust Company (the "Bank"), reported solid quarterly earnings of $1.377 million, or $.65 per share, for the period ended March 31, 2022 compared to $1.545 million, or $.72 per share, for the same period in 2021. The Company's return on assets for the first quarter of 2022 was .98%, down from 1.25% in 2021 as total assets year-over-year increased by 8.24%.
Earnings Highlights
The Company reported a slight decrease of $31 thousand, or (0.9)%, in net interest income for the first quarter of 2022 compared to the same quarter in 2021. Loan fees decreased by $168 thousand in the first quarter primarily due to a reduction in Paycheck Protection Program (PPP) fees. Noninterest income decreased by $60 thousand from a decline in gains on the sale of secondary market loans. Noninterest expense increased $312 thousand to $2.650 million in 2022 from $2.338 in 2021 mainly due to the accounting for origination costs of PPP loans in 2021. As a result of the reduced uncertainty surrounding the COVID-19 pandemic and improved economic conditions, the Bank released $200 thousand from the allowance for loan losses. Management will continue monitoring key economic metrics and the stability in the quality of the Bank's loan portfolio to determine if any further adjustments in the allowance may be warranted. The Company's net interest margin for the first quarter of 2022 was 2.59% versus 3.02% in the first quarter of 2021 and was impacted by the reduction in PPP loan fees.
Balance Sheet
At March 31, 2022 total Company assets were $570 million, an increase of $3.1 million from December 31, 2021. Gross loans ended the period at $206.8 million, a decrease of $5.9 million, and total deposits increased to $504.2 million from $495.8 at year end 2021. Noninterest-bearing deposits decreased slightly from $121.3 million at year end 2021 to $120.3 million, and interest-bearing deposits increased from $374.4 million to $383.9 million during the same period.
Capital Strength
The Company's total equity at March 31, 2022 was $54.7 million and its Community Bank Leverage Ratio was approximately 10.94% for the period. This ratio significantly exceeds the current regulatory standards for well-capitalized status.
Credit Quality
The Bank's loan portfolio has continued to perform well and remains stable. At March 31, 2022 Other Real Estate Owned (OREO) decreased to $1.9 million, or by 10.9%, from December 31, 2021. Nonaccruing loans as a percentage of total loans at March 31, 2022 remained flat at a very low .02%.
President and CEO Joseph D. Borgerding commented, "Management is pleased to report a strong first quarter with earnings of $1.377 million. Net income was down $168 thousand from the record earnings posted in thefirst quarter of 2021. The decline can be attributed primarily to the reduction in government-backed small business Paycheck Protection Program (PPP) loan fees that were predominantly recognized in 2021 as these loans were forgiven. Inflation concerns have resulted in increased rates and we expect this pattern to continue throughout the remainder of the year. Rising rates will likely impact gains realized from the sale of secondary market mortgage loans, but this impact will be more than offset by the increased earnings on the Bank's securities portfolio and overnight investments. The Bank remains well-positioned for this environment as Management anticipated a rising rate environment."
About Citizens Bancorp of Virginia, Inc. and Citizens Bank and Trust Company
Citizens Bank and Trust Company was founded in 1873 and is the second oldest independent bank in Virginia. The Bank has eleven locations in the Counties of Amelia, Chesterfield, Nottoway, Mecklenburg, Powhatan and Prince Edward and one location in the City of Colonial Heights, Virginia. Citizens Bancorp of Virginia, Inc. is the parent company of the Bank and is headquartered in Blackstone, Virginia. The Company's stock trades on the OTC Bulletin Board under the symbol "CZBT". Additional information on the Company and the Bank is also available at its website:www.cbtva.com.
Cautionary Statement about Forward-Looking Statements
We caution you that certain statements in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe that our expectations with respect to these forward-looking statements are based upon reasonable assumptions within the bounds of our business operations, there can be no assurance that the actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. For more details on factors that could affect expectations, see the Company's Annual Report for the year ended December 31, 2021.
CITIZENS BANCORP OF VIRGINIA, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(Dollars in thousands, except share data)
(Unaudited) March 31,
Assets
2022
December 31, 2021
Cash and due from banks Interest-bearing deposits in banks Federal funds sold
Securities available for sale, at fair market value Restricted securities, at cost
Loans, net of allowance for loan losses of $2,555 in 2022 and $2,761 in 2021
Premises and equipment, net Accrued interest receivable Other assets
Bank-owned life insurance
Other real estate owned, net of valuation allowance of $168 in 2022 and $164 in 2021
$
7,878
302 1,337
164,040 72,376
164,655 246,574
440
204,308 210,002
8,400 8,537
1,520 1,526
2,883 1,387
13,731 13,635
1,873 2,103
$ 9,052
403
Total assets
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Noninterest-bearing Interest-bearing
Total deposits Other borrowings Accrued interest payable
Accrued expenses and other liabilities
Total liabilities
Stockholders' Equity
Preferred stock, $0.50 par value; authorized 1,000,000 shares; none outstanding
Common stock, $0.50 par value; authorized 10,000,000 shares; issued and outstanding, 2,129,613 for 2022 and 2,130,888 for 2021 Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Total stockholders' equity
Total liabilities and stockholders' equity
$
570,030
$
566,932
$
120,361 $ 121,380
383,903 374,452
504,264 495,832
6,627 7,547
227 224
4,135 3,354
515,253
-1,065 -
61,670
(7,958)
54,777
$
570,030
506,957
-1,065 -
60,857
(1,947)
59,975
$
566,932
Consolidated Statements of Income
(Dollars in thousands, except per share data)
Interest and Dividend Income
Loans, including fees Investment securities:
Taxable
Tax-exempt
Federal funds sold Other
Total interest and dividend income
Interest Expense
Deposits Borrowings
Total interest expense
Net interest income
(Recovery of) provision for loan losses
Net interest income after (recovery of) provision for loan losses
Noninterest Income
Service charges on deposit accounts Net gain on calls of securities
Net gain on sales of loans
Income from bank-owned life insurance Interchange income, net
Other
Total noninterest income Noninterest Expense
Salaries and employee benefits Net occupancy expense Equipment expense FDIC deposit insurance
Net gain on sale of other real estate owned OREO expenses, net of rental income Other
Total noninterest expense
Income before income taxes
Income taxes
Net income
Earnings per share, basic & diluted
Three Months Ended
March 31,
(Unaudited)
2022 2021
$
3,016 $ 3,326
549 357
41 78
67 18
6 20
3,679 3,799
248 331
4 10
252 341
3,427 3,458
(200)
-
3,627 3,458
163 140
1 2
67 138
96 94
223 218
180 198
730 790
1,682 1,474
166 178
134 140
41 30
(78) (81)
22 14
683 583
2,650 2,338
1,707 1,910
330 365
$ $
1,377 $ 1,545
0.65 $ 0.72
Consolidated Regulatory Capital Ratios
And Performance Ratios
(Dollars in thousands, except per share data)
Three Months Ended
March 31, | December 31, | September 30, | June 30, | March 31, |
2022 | 2021 | 2021 | 2021 | 2021 |
Per Share Data:
Earnings per weighted average share
Weighted average shares outstanding
Actual shares oustanding
Book value per share at period end
Dividend per share
Performance Ratios:
Return on average assets
Net interest margin, (FTE)1
Efficiency ratio2
Capital and Other Ratios:
$0.65
2,130,378 2,129,613
$ $
25.72 0.25
0.98% 2.59% 63.59%
(Ratios are period end, unless stated otherwise)
Tier 1 leverage ratio
Allowance for loan losses to total loans
Nonaccruing loans to total loans
Net charge-offs (net recoveries)
to average loans (annualized)
$0.63
2,130,961 2,130,888
$ $
28.15 0.25
0.97% 2.80% 66.03%
10.94%
11.18%
1.23%
1.30%
0.02%
0.03%
0.01%
0.00%
1 The net interest margin is reported on a fully taxable equivalent basis.
$0.59
$0.69
$0.72
2,132,470 2,131,138
2,137,051 2,143,378
2,134,631 2,142,731
$ $
27.76 0.25
$ $
27.67 $ 27.08
0.25 $ 0.24
0.92% 2.79% 66.31%
1.12% 1.25%
2.78% 3.02%
56.87% 54.77%
11.30%
11.45% 11.85%
1.30%
1.28% 1.31%
0.01%
0.01% 0.06%
-0.06%
0.01% 0.00%
2 Computed by dividing noninterest expense by the sum of net interest income (on a fully taxable equivalent basis) and noninterest income.
CONTACT:Geoffrey C. Warner
EVP and Chief Financial Officer
Voice: 434-292-8100 or E-mail:Geoffrey.Warner@cbtva.com
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Citizens Bancorp of Virginia Inc. published this content on 18 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 April 2022 22:03:08 UTC.