“We completed 2019 with positive results and good energy. A 12.72% core return on average equity, 56% core earnings growth, and strong asset quality for the year, we produced $5,101,000 in core operating net income. We effectively battled to develop profits in a breeding ground for which margins had been under some pressure, and then we achieved it within the right methods by controlling expenses and driving noninterest earnings growth available banking part and also by growing home loan profits. We failed to chase risk or yield. We didn’t leverage the balance sheet up. We maintained our concentrate on winning and growing appealing commercial and consumer relationships. This is certainly additionally the sort of environment that shows the strategic value of being when you look at the home loan business whose profits rounds operate only a little countertop into the commercial banking section. ”
“We aren’t worried about the deposit declines from Q3 2019 to Q4 2019. As noted, we serve company client portions whoever noninterest bearing deposit balances develop throughout the very very first three quarters and shrink through the quarter that is fourth. The 9.98% development from year end 2018 to 12 months end 2019 is just a good barometer for development inside our noninterest bearing deposits. Into the cash market reports, we added significant short-term balances through the 3rd quarter to support an essential customer, together with customer started initially to make distributions from those accounts belated when you look at the 4th quarter. We think that we produced main development of roughly 7% in cash market records during 2019. The temporary money market deposits and the seasonal growth in noninterest bearing deposits were invested in low yielding fed funds and compressed our margins which accounted for a substantial portion of our net interest margin compression as we noted in our Q3 2019 press release. We have been anticipating enhancement within our interest that is net margin 2020 from everything we experienced in Q4 2019. ”
“In 2015 we began referring to delivering top quartile longterm shareholder returns by creating a top quartile return on equity, sustained high solitary digit natural profits per share development, and producing well quartile asset quality into the worst area of the credit period. We thought it could just simply simply take until 2019 to reposition the company plus the stability sheet to complete that. We anticipate that whenever the total link between our peers have been in, they are going to show that individuals reached the return on equity goal and generally are well placed to ultimately achieve the profits development and asset quality goals. Our 2019 core return on equity of 12.72per cent might have put us well within the quartile that is top of southeastern publicly exchanged banking institutions under $1 billion in assets (per S&P Global) when it comes to 12 months finished September 30, 2019. Needless to say, our credit performance is only going to expose it self in a cycle that is down and none of us is longing for that any time in the future. ”
“We enter 2020 with solid pipelines in loans, deposits and mortgage applications, and optimism concerning the coming year. We genuinely believe that we possess the group, brand, market and opportunity that is competitive build on our strong 2019 performance. ”
About Village Bank and Trust Financial Corp.
Village Bank and Trust Financial Corp. Ended up being organized underneath the laws and regulations regarding the Commonwealth of Virginia as a bank company that is holding tasks include investment in its wholly-owned subsidiary, Village Bank. Village Bank is a full-service Virginia-chartered community bank headquartered in Midlothian, Virginia with deposits insured by the Federal Deposit Insurance Corporation (“FDIC”). The financial institution has nine branch workplaces. Village Bank and its own wholly-owned subsidiary, Village Bank Mortgage Corporation, offer a whole number of lending options and solutions, including commercial loans, credit rating, home loan financing, checking and savings records, certificates of deposit, and banking that is 24-hour.
Non-GAAP Financial Measures
The accounting and reporting polices associated with the business conform to generally accepted accounting maxims in https://speedyloan.net/installment-loans-ia america (“GAAP”) and practices that are prevailing the banking industry. But, administration makes use of specific non-GAAP measures to augment the assessment of this Company’s performance. These measures consist of core working earnings for the entity that is consolidated the commercial banking part, plus the home loan banking section. Management thinks presentations of those non-GAAP monetary measures offer of good use supplemental information that is important to a suitable comprehension of the working outcomes of the Company’s core companies. These non-GAAP disclosures shouldn’t be regarded as a replacement for running outcomes determined prior to GAAP, nor will they be always similar to non-GAAP performance measures that can be presented by other programs. Reconciliations of GAAP to disclosures that are non-GAAP included as tables at the conclusion of this launch.
This press release may contain forward-looking statements in addition to historical information. For this specific purpose, any declaration, that’s not a declaration of historic reality might be deemed to be always a forward-looking statement. These forward-looking statements can sometimes include statements regarding profitability, liquidity, allowance for loan losses, rate of interest sensitiveness, market risk, development strategy and economic along with other objectives. Forward-looking statements often utilize words such as for example “believes, ” “expects, ” “plans, ” “may, ” “will, ” “should, ” “projects, ” “contemplates, ” “anticipates, ” “forecasts, ” “intends” or other terms of comparable meaning. You may also determine them because of the proven fact that they don’t connect strictly to historical or present facts. Forward-looking statements are at the mercy of many presumptions, dangers and uncertainties, and real outcomes could vary materially from historical outcomes or those expected by such statements.
There are numerous facets which could have a material effect that is adverse the operations and future leads associated with business including, not restricted to:
