CCB Bankshares, Inc. is pleased to announce net income to common shareholders of $204,013 for the third quarter of 2016

SOUTH HILL, Va., Nov. 10, 2016 /PRNewswire/ -- CCB Bankshares, Inc. (OTCQB: CZYB) today announced its unaudited results of operations for the third quarter of 2016.

Earnings

CCB Bankshares, Inc. is pleased to announce net income to common shareholders of $204,013 for the third quarter of 2016 compared to $179,054 after preferred stock dividends of $2,500 for the third quarter of 2015.  On a basic and diluted basis, this was equivalent to $0.13 per share compared to $0.12 per share for the third quarter of 2015.  Year to date, net income after preferred stock dividends was $573,774, compared to $559,824 for the same period of 2015.  Before taxes and provisions for loan losses, net income stood at $1,151,598 at September 30, 2016, an increase of $119,013 or 11.5% over the same period of 2015.  

President and CEO James R. Black, commented:  "We experienced another quarter of solid growth and continued to build relationships throughout our markets. We are organically building a franchise with solid customer relationships, which is rewarding and valuable as a community bank. Our loan pipeline and overall momentum remains strong as we head into the fourth quarter of 2016 and prepare for 2017."

In comparing the third quarter of 2016 to the same quarter in 2015, net interest income increased by $164,117 or 10.5%.  The net interest margin for the third quarter of 2016 was 3.60%, compared to 3.81% for the third quarter of 2015; margin results for 2016 reflect the impact of interest expense on subordinated debt.  The weighted yield on earning assets was 4.31% for the third quarter of 2016 compared to 4.37% for the same period of 2015.  The weighted cost of funds for the third quarter of 2016 was 0.74% compared to 0.71% for the same period of 2015.    

Noninterest income totaled $204,673 for the third quarter of 2016 compared to $202,075 for the same period in 2015.  Noninterest income for the first nine months of 2016 was $606,383, compared to $597,323 for the same period of 2015.  Noninterest expense for the third quarter of 2016 was $1,523,825 compared to $1,396,113 for the third quarter of 2015.  Noninterest expense year-to-date is $4,468,391 compared to $4,046,576 at September 30, 2015, an increase of 421,815 or 10.4%.

Growth

At September 30, 2016, total assets were $207.1 million, up $26.9 million or 14.9% from December 31, 2015. Gross loans were $171.1 million, an increase of $20.0 million or 13.3% from December 31, 2015, and $26.5 million or 18.3% from September 30, 2015.  Deposits totaled $179.3 million, an increase of $25.7 million or 16.8% from December 31, 2015.  The company has experienced growth across its entire footprint, but particularly in the emerging markets in North Carolina. 

Asset Quality

At September 30, 2016, the allowance for loan losses was $2.2 million or 1.30% of loans.  Nonperforming loans at September 30, 2016 were $669 thousand, compared to $516 thousand at December 31, 2015 and $983 thousand at September 30, 2015.  Provision expense at September 30, 2016 was $340 thousand compared to $210 thousand at September 30, 2015. 

At September 30, 2016, other real estate owned totaled $154 thousand compared with $217 thousand at year end 2015 and $387 thousand at September 30, 2015.  In aggregate, nonperforming assets equaled $823 thousand or 0.4% of total assets at September 30, 2016, compared to $1.4 million or 0.8% of total assets at September 30, 2015.     

Capital

As of September 30, 2016, the Bank's total risk-based capital was 13.5% and Tier 1 leverage was 9.9%.  In February 2016, the Company repaid the remaining $1 million of the preferred stock issued in connection with the Treasury's Small Business Lending Fund which resulted in a reduction in the capital ratios.  In addition, in February 2016 the company issued $3.5 million in subordinated debt, fixed at 7.0% for 10 years. 

CCB Bankshares, Inc. is a holding company organized under the laws of the Commonwealth of Virginia with Citizens Community Bank, a Virginia state chartered bank headquartered in South Hill, Virginia, its primary asset. The Bank opened in December 1999, it operates six branches, three in south central Virginia and three in northern North Carolina.  For more information and additional financial data, please visit www.myccb.bank. 

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 Company and other factors it believes are appropriate in the circumstances and at the time at which such statements are made.  The Company's actual results, events and developments may differ materially from those contemplated by any forward-looking statement.  The Company has no responsibility to update such forward-looking statements.

SOURCE CCB Bankshares, Inc.