2015 YEAR IN REVIEW and Unaudited Financial Highlights
PARTNERS IN YOUR SUCCESS
OUR MISSION Community Bankers’ Bank will be the correspondent bank and financial services provider of choice for community banks in the Fifth Federal Reserve District.
OUR VISION Community Bankers’ Bank will deliver continuous innovation and outstanding value to community banks by the economies of scale that we create, our methods of delivery and the quality of our people.
O U R VA L U E S At Community Bankers’ Bank, we are committed to the highest standards of ethics and integrity. We are responsible to our shareholders and clients, our strategic partners, and to our employees and their families. In discharging our responsibilities, we do not take professional or ethical shortcuts. Our interactions must reflect the high standards we profess and are expressed by the following core values: EXCELLENCE We allow our customers to define quality and strive for excellence in all that we do to exceed expectations. RESOURCEFUL We are creative in delivering value to our clients, anticipate change, and capitalize on the opportunities that arise. RELIABLE We display reliability, responsiveness and consistency by delivering what we promised when we promised. INTEGRITY We employ the highest ethical standards and demonstrate honesty and straightforwardness without compromising the truth. RESPECT We honor the rights and beliefs of our fellow associates, clients and partners, and treat them with the highest degree of dignity, equality and trust. TEAMWORK We promote and support a diverse, yet unified, team, and work together to meet our common goals. ACCOUNTABILITY We accept individual and team responsibilities to meet our commitments and take ownership of our decisions and actions. COMMUNICATION We encourage all team members to openly share their opinions and views. BALANCE We are flexible and support team members in striking a healthy work and life balance.
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PRESIDENT Dear Shareholders, We are passionate about the reason that our organization exists… for the success of our shareholders and community banking at large. We state in our core values, “We allow our customers to define quality and strive for excellence in all that we do to exceed their expectations.” This key value drives us every day. So how did we do in 2015? Here are just a few of my thoughts… You entrusted us to manage over $1.8 billion of your assets — a 13.2% increase. We have sold you over $69 million in loan participations — a 36% increase. You earned $2.1 million in loan participation interest — a 20% increase… add $143 thousand for discounted correspondent services to further drive that value. Nine banks believed in us and purchased $507 thousand of our parent company stock. We expanded our consulting practice with two seasoned loan review professionals who performed 20 assignments in six months. We’ll double that in 2016 and you’ll receive a shareholder discount. We identified two alliance partners for expansion into SBA lending, and executive and credit risk management… shareholders will receive discounts here too. Last, but not least, our relationship managers were organized as “universal bankers” to answer the call for all of our services, so now you can rely on your Regional Manager for everything at CBB. As a regulated bank, we have excellent capital levels, strong asset quality and management, and earned $705 thousand of net income, which exceeded budget and 2014 actual by 77.7% and 53.9%, respectively. As a result, Bauer Financial awarded us 5-Stars, its top rating. We retained our earnings to upgrade our core processing system, and CBLink, our IT connection with you (for on-boarding in Q3 2016). We also purchased CRM software, and invested in our associates. All were implemented to remain safe and sound and to better serve you. We, like you, will continue to be challenged by the headwinds of slow economic recovery, monetary policy, cybersecurity, risk management, regulatory burden, and industry consolidation. However, we are committed to meet those challenges with change and innovation, technology, excellent people, and of course, with your commitment and help to maximize the potential of your bankers’ bank cooperative. Best Regards,
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FINANCIAL AND S H A R E H O L D E R VA L U E
ROBIN CUPKA Senior Vice President, Regional Manager
JOHN DANE “There are many reasons why I am committed
Vice President, Regional Manager
to our work at Community Bankers’ Bank. One of the biggest is our dedication and
“Through thick and thin, we stay true to
commitment to our owners, which are all
our vision. Proven during the most recent
community banks. We’ll always be there with
recession, our shareholders were met with
their best interests in mind — and partnering
troubled loan participations or liquidity
in their success.”
challenges. We remained patient, responsive and cooperative to help them with their needs. CBB shareholders counted on us then, during a difficult business cycle, as they can count on us now to meet their goals through the recovery.”
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$1,749,095
2013
$1,948,480
$976,207
$772,888
$76,658
$484,159
$18,506
$50,983
$142,582
$1,248,416
$732,019
$69,552
$388,817
$42,050
$69,352
$162,248
$1,980,435
2014
$1,903,564
$781,821
$49,491
$513,473
$34,583
$40,715
$143,559
$1,166,659
2012
$994,419
$909,145
$50,824
$631,119
$23,310
$47,161
$156,731
2015
PA RT I C I PAT I O N INTEREST EARNED
2 015
$2,095,063
$1,745,660
2 014
2 013
$1,917,647
2 012
SHAREHOLDER DIVIDENDS
*Unaudited dollars in thousands
Total assets under management and safekeeping assets
Safekeeping assets
Total assets under management
Public Funds CDs
EBA balances
Fed funds agency pool balances
Participation loans sold to other banks
Total Assets
ASSETS
Account Maintenance
2015 $142,815
2014 $158,421
2013 $138,822
2012 $128,244
Consulting Services Discounts
Domestic and Foreign Wire Service Discounts Fed Fund Purchase Rate Bonuses Fed Fund Sold Rate Discounts Legacy Fed Fund Bonus
Public Funds CD P rogram Discounts
Stock Par Value E arnings Credits
$2,201,377
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YO U R IN VEST M ENTS L E V ERAGED WITH ACT IV E P O RTFOLIO MA NAGEMEN T
CUSTOM -TAILO R ED SOLUT IO NS FOR YO UR CRED IT NE ED S
As important as your bank’s investments are, we know you want
As a bankers’ bank, our business model employs our
your excess liquidity to work hard for the best return. So CBB
resources, and those of our clients. That gives you
trusts our partner First National Bankers’ Bank Capital Markets
extra power to…
for important services like investment sales, Bank Owned Life Insurance (BOLI), portfolio analytics, bond accounting,
• Retain your customers
safekeeping, and asset liability management. And for appropriate
• Increase your lending limit
monitoring of your investments, you can use our DIVER Analytics
• Supplement your organic growth
to stay on top of the due-diligence requirements of Dodd-Frank.
• Diversify your portfolio • Manage your balance sheet
Our seasoned investment team works to find opportunities that fit
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your strategy. We go further than simply selling you bonds… our
We’ll also relieve you of Reg O burdens, helping your
advisors take the time to fit you with bonds based on your goals.
officers and directors with loans for stock purchases
And we’ll show you the often-overlooked benefits of BOLI, which
and options, along with other secured and unsecured
can not only reduce the cost of your benefit programs, but can
loans. We work with total confidentiality — and you
also serve as a long-term asset and a strong investment option.
won’t have to go to a competitor.
Many of our clients trust us for portfolio accounting as well. With
Our expertise and support also extends into
over $1 billion in our safekeeping service, you can count on rapid
specialized areas such as appraisal reviews, tax
and accurate information of your bank’s securities with secure
exempt municipal lease programs, and managing the
Internet access.
complexities of SBA loans.
JO ELLEN ARCHER Senior Vice President, Regional Manager – Investments “When it comes to investments, our focus is on creating bottom line value over the long term, and not solely on transactions. I’m proud of our consistent professionalism, because our customers trust us to help them achieve their strategic goals. And with quality customer service, plus accurate and reliable bond accounting and safekeeping, you couldn’t ask for a more committed and reliable partner.”
E M I LY M A Z E Vice President, Loan Portfolio Officer “One of the great features of the bankers’ bank model is to help you grow your assets. When a customer comes to you with a loan request that exceeds your legal lending limit, you won’t need to lose that customer to a competitor. We’ll be your partner, not your competitor, and help you make a loan that otherwise wouldn’t be possible.”
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ADAM WELLS Chief Internal Auditor “I know from experience how important it is to stay ahead of regulators. And I’m really proud of the job we do with internal audits and monitoring credit risk. We keep abreast of banking regulations, legislation, and industry trends, so your management team can be confident that they are receiving the most up-to-date expertise available.”
SHANNON HAIRFIELD Vice President, Operations and IT “I always take a personal interest in meeting your needs and try to make your experience the very best. Yes, it’s a bit old-fashioned, but our entire organization is focused on being responsive and reliable so we continually strive to exceed your expectations. Since I’m often the point of contact, I’ll go out of my way to help find solutions no matter the source of the problem — help is just a phone call away.”
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C O N S U LT I N G EXPERIENCE FOR BANKING’S MOST COMPLEX ISSUES It’s difficult for most community banks to effectively manage the many tasks they face. Senior-level expertise is often spread thin, and it’s difficult to stay on top of the constantlyshifting landscape. Our people have spent their careers in the banking business, and can offer the specialized consulting you need — all from a culture that constantly monitors banking regulations, legislation and trends. With our extensive experience, we’re able to step in to help. We offer more than just theoretical insights. Our loan specialists will support your management team with expertise in risk, credit policies and allowances for loan losses and leases without putting a burden on your staff resources. Our subsidiary CB Consulting Services can help with the intricacies of operational audits including compliance,
R E A L PA RT N E R S H I P I N YO U R D AY -TO - D AY O P E R AT I O N S Community banks expect a strong and safe correspondent partner staffed by experts who have a genuine concern for their needs. The staff of CBB is a dedicated group who is a steady partner in managing the back-office operations that keep your business moving. We offer a complete array of cutting edge correspondent products including international wire and foreign currency services and our clearing solution for your image cash letter. CBB personnel manage all allocations and accounting when your excess liquidity is invested overnight into our Fed Funds Program. We know how important it is for you to compete effectively with larger banks, so we provide the operational tools to give your customers the service they want. CBB’s most important goal is excellent client support and we strive every day to help our client banks grow and prosper.
BSA, information technology, penetration testing and risk assessments. We also ally with an outside expert for strategic planning, human resources strategies, merger and acquisition planning, enterprise risk management, and much more. We can perform all of your internal audit needs or supplement your existing program. Best of all, these activities can be tailored to your special needs to give you the flexibility you require — all performed with a strong sense of collaboration and partnership.
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SHAREHOLDERS
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Alliance Bank & Trust
Farmers & Merchants Bank of Craig County
Oak View National Bank
American Bank of Huntsville
Farmers Bank
Old Dominion National Bank
American National Bank & Trust Co.
First and Citizens Bank
OldTown Bank
Arthur State Bank
First Bank
Park Sterling Bank*
Bank @LANTEC
First Capital Bank
Peoples Community Bank
Bank of Botetourt
First Carolina Bank
Pioneer Bank
Bank of Clarke County*
First Community Bank
Premier Bank
Bank of Greeleyville*
First National Bank*
River Community Bank, NA
Bank of Hampton Roads
First Reliance Bank
Roanoke Rapids Savings Bank
Bank of Lancaster*
First State Bank
Sandhills Bank
Bank of McKenney
First United Bank & Trust*
Select Bank
Bank of North Carolina*
First Virginia Community Bank
SonaBank, NA*
Bank of The James*
First-Citizens Bank & Trust
Surrey Bank & Trust
Benchmark Community Bank*
FNB Bank
Taylorsville Savings Bank, SSB
Blue Ridge Bank (SC)
Four Oaks Bank & Trust*
The Bank of Charlotte County*
Blue Ridge Bank (VA)*
Fraternity Federal Savings and Loan Assoc.
The Bank of Fincastle
Burke & Herbert Bank & Trust Co.
Frederick County Bank
The Bank of Marion*
Calhoun Banks
Freedom Bank of Virginia
The Bank of Romney
Capital Bank NA
Fulton Bank
The Bank of Southside Virginia
Cardinal Bank*
Grayson National Bank
The Commercial Bank
Carroll Community Bank
Greer State Bank
The Farmers Bank of Appomattox*
Cecil Bank
Heritage Community Bank
The Fauquier Bank
Chain Bridge Bank, NA
Highlands Community Bank*
The National Bank of Blacksburg
Chesapeake Bank
Highlands Union Bank*
The Peoples Bank
Citizens and Farmers Bank*
HomeTrust Bank
Union Bank
Citizens Bank and Trust Company*
Jefferson Security Bank
Union Bank & Trust
Citizens Community Bank*
John Marshall Bank
United Bank*
Citizens National Bank
KS Bank, Inc.
Village Bank*
Clover Community Bank
Lee Bank and Trust
Virginia Bank & Trust Company
Coastal Carolina National Bank
MainStreet Bank*
Virginia Commonwealth Bank
Community Capital Bank of Virginia
MCNB Bank and Trust Co.
Virginia Community Bank*
Congressional Bank
Miners Exchange Bank
Virginia National Bank
County First Bank
Monarch Bank*
Virginia Partners Bank
EagleBank
Monument Bank
WashingtonFirst Bank*
Entegra Bank
New Horizon Bank, NA
West Union Bank
Essex Bank
New Peoples Bank, Inc.
Williamstown Bank
EVB
New Republic Savings Bank
Yadkin Bank
Farmers & Merchants Bank
New Windsor State Bank
* denotes LEGACY SHAREHOLDER
B O A R D O F D I R E C TO R S O F C B B F I N A N C I A L C O R P.
EXECUTIVE MANAGEMENT
Seated, left to right: Howard F. Pisons, Charles K. Collum, Jr., Ellis L. Gutshall, Jerri D. Cowan Standing, left to right: Christopher J. Honenberger, Curtis A. Tyner, John E. Stringer, Earl W. Worley, Jr., Tom N. Rasmussen, William H. McFaddin, Thomas F. Whaling
Seated: Howard F. Pisons, Nancy S. Sullivan Standing: Stephen R. Kinnier, Wendy C. Wright
Charles K. Collum, Jr. Executive Officer John Marshall Bank Reston, VA Chair
Ellis L. Gutshall Executive Vice President & Regional President Bank of North Carolina
Christopher J. Honenberger President & CEO ClearPoint Financial Services Richmond, VA
William H. McFaddin Retired Community Bankers’ Bank Midlothian, VA
Roanoke, VA Vice Chair
Howard F. Pisons President & CEO
Tom N. Rasmussen
Curtis A. Tyner
Howard F. Pisons
President & CEO
President & CEO
Heritage Community Bank Hartsville, SC
Stephen R. Kinnier Senior Vice President & CFO
Thomas F. Whaling President & CEO West Union Bank
Wendy C. Wright Senior Vice President Operations & IT
West Union, WV
Earl W. Worley, Jr.
President & CEO
Executive Vice President & Chief Operating Officer
New Windsor State Bank
KS Bank
Taneytown, MD
Smithfield, NC
Nancy S. Sullivan Senior Vice President & Chief Credit Officer
Community Bankers’ Bank Midlothian, VA
John E. Stringer President & CEO
Jerri D. Cowan
The Bank of Marion
Owner
Marion, VA
Human Resources Consultants Richmond, VA
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P.O. BOX 268 MIDLOTHIAN, VA 23113 (804) 794-5885 CBBONLINE.COM
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