Responses from Bill Foster, President and CEO:

Responses from Bill Foster, President and CEO:

“We completed 2019 with positive results and momentum that is positive. 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 host for which margins had been under great pressure, and now we achieved it into the right methods by controlling expenses and driving noninterest earnings development in the industry banking section and also by growing home loan profits. We didn’t chase yield or risk. We didn’t leverage the balance sheet up. We maintained our concentrate on growing and winning appealing commercial and consumer relationships. This might be additionally the type of environment that demonstrates the strategic value to be when you look at the home loan company whoever profits rounds run a small countertop to your commercial banking part. ”

“We aren’t concerned with 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 throughout the 4th quarter. The 9.98% development from 12 months end 2018 to 12 months end 2019 is really a good barometer for development within our noninterest bearing deposits. Within the cash market reports, we included substantial temporary balances through the 3rd quarter to allow for a significant customer, and also the customer started to make distributions from those accounts belated when you look at the 4th quarter. We think that we produced growth that is core of 7% in cash market reports 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. Our company is anticipating enhancement within our web interest margin in 2020 from that which we experienced in Q4 2019. ”

“In 2015 we began dealing with delivering top quartile long haul shareholder returns by producing a top quartile return on equity, sustained high solitary digit natural profits per share growth, and generating well quartile asset quality when you look at the worst an element of the credit cycle. We thought it might simply simply take until 2019 to reposition the continuing company and also the stability sheet to complete that. We anticipate that whenever the total link between our peers come in, they’ll show that people attained the return on equity goal and are usually well placed to ultimately achieve the profits development and asset quality goals. Our 2019 core return on equity of 12.72% might have placed us well in the quartile that is top of southeastern publicly exchanged banking institutions under $1 billion in assets (per S&P Global) for the a year ended September 30, 2019. Needless to say, our credit performance is only going to reveal it self in a cycle that is down and none of us is dreaming about that any time in the future. ”

“We enter 2020 with solid pipelines in loans, deposits and home loan applications, and optimism in regards to the coming year. We think that we possess the team, brand name, 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 arranged underneath the legislation of this Commonwealth of Virginia as being a bank keeping company whoever tasks include investment with its wholly-owned subsidiary, Village Bank. Village Bank is just 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 as well as its wholly-owned subsidiary, Village Bank Mortgage Corporation, offer a whole variety of lending options and solutions, including commercial loans, credit, home loan lending, checking and savings records, certificates of deposit, and 24-hour banking.

Non-GAAP Financial Measures

The accounting and reporting polices of this Company conform to generally accepted accounting principles in the usa (“GAAP”) and prevailing techniques in the banking industry. Nevertheless, administration makes use of particular measures that are non-GAAP augment the assessment of this Company’s performance. These measures consist of core running earnings for the entity that is consolidated the commercial banking portion, while the home loan banking portion. Management thinks presentations of those non-GAAP economic measures provide helpful supplemental information that is important to an effective knowledge of the running outcomes of the Company’s core organizations. These non-GAAP disclosures shouldn’t be regarded as a substitute for running outcomes determined according to GAAP, nor will they be always much like non-GAAP performance measures that can be presented by others. Reconciliations of GAAP to disclosures that are non-GAAP included as tables at the conclusion with this launch.

This press release may contain forward-looking statements in addition to historical information. For this specific purpose, any declaration, that isn’t a declaration of historic reality can be deemed to become a forward-looking declaration. These forward-looking statements can sometimes include statements profitability that is regarding liquidity, allowance for loan losings, interest sensitivity, market danger, development strategy and monetary as well as other objectives. Forward-looking statements often utilize terms such as for instance “believes, ” “expects, ” “plans, ” “may, ” “will, ” “should, ” “projects, ” “contemplates, ” “anticipates, ” “forecasts, ” “intends” or other terms of comparable meaning. You can even determine them by the proven fact that they cannot connect strictly to historical or present facts. Forward-looking statements are susceptible to assumptions that are numerous dangers and uncertainties, and real outcomes could differ materially from historic outcomes or those expected by such statements.

There are numerous facets which could have product effect that is adverse the operations and future leads associated with business including, not limited by:

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