Feedback from Bill Foster, President and CEO:

Feedback from Bill Foster, President and CEO:

“We completed 2019 with positive results and good energy. For the 12 months, we produced $5,101,000 in core operating net gain, a 12.72% core return on average equity, 56% core profits development, and strong asset quality. We effectively battled to cultivate profits in a breeding ground in which margins were under some pressure, so we made it happen when you look at the right methods by controlling expenses and noninterest that is driving growth in the industry banking section and also by growing home loan profits. We failed to 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. That is additionally the type of environment that demonstrates the strategic value to be when you look at the home loan company whoever profits cycles operate only a little countertop into the commercial banking portion. ”

“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 through 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 barometer that is good development in our noninterest bearing deposits. When you look at the cash market reports, we included significant short-term balances during the 3rd quarter to support an essential customer, in addition to customer started initially to make distributions from those accounts belated when you look at the quarter that is fourth. We think that we produced growth that is core of 7% in cash market records during 2019. Even as we noted within our Q3 2019 pr release, the short-term cash market deposits in addition to regular growth in noninterest bearing deposits were dedicated to low yielding given funds and compressed our margins which taken into account a significant part of our web interest margin compression. Our company is anticipating enhancement within our web interest margin in 2020 from that which we experienced in Q4 2019. ”

“In 2015 we began speaking about delivering top quartile long haul shareholder returns by creating a top quartile return on equity, sustained high solitary digit natural profits per share development, and creating well quartile asset quality into the worst an element of the credit cycle. We thought it might just take until 2019 to reposition the company plus the stability sheet to complete that. We anticipate that after the total outcomes of our peers have been in, they’re going to show that people realized the return on equity goal and generally are well placed to attain 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) for the a year ended September 30, 2019. Needless to say, our credit performance is only going to expose it self in a down period, and none of us is longing for that any time in the future. ”

“We enter 2020 with solid pipelines in loans, deposits and home loan applications, and optimism concerning the ahead year. We think that we have the group, brand name, market and competitive chance to 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 guidelines regarding the Commonwealth of Virginia being a bank company that is holding tasks include investment with its wholly-owned subsidiary, Village Bank. Village Bank is a full-service community that is virginia-chartered headquartered in Midlothian, Virginia with deposits insured by the Federal Deposit Insurance Corporation (“FDIC”). The lender has nine branch offices. Village Bank and its particular wholly-owned subsidiary, Village Bank Mortgage Corporation, offer a whole number of lending options and solutions, including commercial loans, credit rating, mortgage financing, checking and savings reports, certificates of deposit, and banking that is 24-hour.

Non-GAAP Financial Measures

The accounting and reporting polices associated with Company conform to generally accepted accounting axioms in america (“GAAP”) and prevailing techniques in the banking industry. Nonetheless, administration utilizes specific non-GAAP measures to augment the assessment for the Company’s performance. These measures consist of core running earnings for the entity that is consolidated the commercial banking section, while the home loan banking part. Management thinks presentations of those non-GAAP economic measures offer of good use supplemental information that is necessary to an effective knowledge of the running outcomes of the Company’s core organizations. These non-GAAP disclosures really should not 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 businesses. Reconciliations of GAAP to disclosures that are non-GAAP included as tables at the conclusion with this launch.

Along with historic information, this news release may include forward-looking statements. For this purpose, any declaration, that’s not a declaration of historic reality can be considered to become a forward-looking declaration. These forward-looking statements can include statements regarding profitability, liquidity, allowance for loan losings, interest sensitiveness, market danger, development strategy and economic as well as other objectives. Forward-looking statements often utilize terms such as for example “believes, ” “expects, ” “plans, ” “may, ” “will, ” “should, ” “projects, ” “contemplates, ” “anticipates, ” “forecasts, ” “intends” or other terms of comparable meaning. You may want to determine them by the proven fact that they cannot connect strictly to historical or present facts. Forward-looking statements are at the mercy of assumptions that are numerous dangers and uncertainties, and real outcomes could vary materially from historical outcomes or those expected by such statements.

There are lots of facets which could have product effect that is adverse the operations and future leads for the Company including, yet not limited by: