The regular stockholders meeting of BCC Bankshares, Inc. and its’ subsidiary, The Bank of Charlotte County, was held on Tuesday, Jan. 19, at the bank’s main office in Phenix.  There were a total of 14,097.80 shares of stock represented by person and proxy for the meeting.

Bobby A. Howard, chairman of the board, welcomed those in attendance to the 103rd meeting of the bank’s shareholders. Howard said it was his pleasure to report another successful year of operations and progress for the bank. The Bank of Charlotte County is a wholly owned subsidiary of BCC Bankshares, Inc., which is a financial bank holding company. Howard reminded those in attendance that the continuing success of the bank was due in a large measure to its’ directors, management, staff, loyal customers and many friends in the bank’s trade area

Howard gave the 2015 annual report for the bank and holding company. He advised the anticipated national and global economic recovery continued to be slow and the anticipated progress for the most part did not come to fruition in 2015. However, some positive trends did emerge. Similar to the national and state economy, the banking industry in general, and the community banking industry in particular, posted similar improved trends in 2015.

“Although our industry did experience some improvements in many areas in 2015, the overall performance has remained below industry norms,” stated the release. “In addition, earnings for the industry showed some improvements over recent years. For the industry as a whole, this improvement in earnings was driven by lower provisions for loan losses and higher non-interest income. These improvements were somewhat negated by a continued decline in net interest margins, which promises to present a significant problem for the banking industry in the future. Return on assets and return on equity remained below average compared to pre-recession standards, although showing some continued improvement in 2015.”

The banking industry continues to bear the brunt of the recession and the very slow recovery of recent years, according to the release.

“The overreaction and overregulation have not improved.  In fact, they continue to escalate as more and more regulation and regulatory burdens are added to the already overburden segment of the banking industry. Community banking leaders, as well as other industry experts, firmly believe that this extreme regulatory burden is a large contributor to the slow economic recovery.”

The release stated it has inhibited the ability for community banks to lend money to support their communities, as has been the case through previous recessions and economic downturns.

“This regulatory burden continues to worsen for our industry. The Dodd Frank Act, passed by Congress in 2010. and considered by our industry to be one of the most burdensome pieces of regulation ever, is just now being forcefully implemented. Additionally, the recently established Consumer Financial Protection Bureau is another example of why community banks are being regulated out of business by the federal government at an increasing rate and number.”

According to the release, total assets of the bank as of Dec. 31, were $133,924.842 as compared to $132,206,432 on Dec. 31, 2014.

Net income for 2015 was $1,312,604 or $49.07 per share as compared to $1,344,398 or $50.01 for the previous year. Total deposits as of Dec. 31, were $108,149,162 as compared to $107,205,096 for Dec. 31, 2014. Earnings for the year represent a 6.57 percent return on equity and a .99 percent return on assets. This compares to a 6.95 percent return on equity and a 1.04 percent return on assets for the year 2014.  Our net loan charge-offs for 2015 were $189,456 as compared to $211,707 for the previous year.  Our Reserve for Bad Debts account balance as of December 31, 2015 was $1,203,629 or 1.27 percent of total loans as compared to $1,258,085 or 1.36 percent of total loans for previous year. It is our belief this reserve is adequate for any future loan losses,” the release state.

This year the bank declared a $20 per share dividend with a total payout for 2015 of $534,920 on the 26,746 shares of outstanding stock. This represented a 40 percent payout of the bank’s net profits to its’ shareholders — a substantial amount. This was the same payout as the previous year.

“Currently, there are 145 shareholders who now hold 26,746 shares of outstanding stock. Our stock is very closely held and is not traded on any stock exchange.  Our capital accounts now total $19,986,478 as compared to $19,349,439 for 2014. We place a high priority on retaining sufficient profits to enhance and maintain a strong capital position for the bank.

“At the same time, we are aware our shareholders expect and deserve a reasonable return on their investments. This commitment to capital insures our bank will have a solid foundation to operate from and build upon which will permit us to take full advantage of any future expansion opportunities without having to sell additional stock. The book value of the bank’s stock as of Dec. 31, was $747 per share as compared to $722 per share for 2014,” the release stated.

There were several changes made to the board of directors of the holding company and the bank for 2016. Gene B. Dixon, Jr., long time chairman of the board, chose to retire from the boards of the holding company and the bank as of Dec. 31. The shareholders then elected Bobby A. Howard as chairman, president and CEO of the holding company and the bank.

Also, the shareholders elected Guy B. Dixon to both boards. He is the president and CEO of The Disthene Group, Inc., located in Buckingham County and includes the Kyanite Mining Corporation and Blue Rock Resources, Inc. and he is the son of Gene B. Dixon, Jr.

“Howard congratulated Gene on his retirement from the boards and commented he had faithfully served the bank for forty years as chairman and as a member of the boards of the bank and holding company. Howard welcomed Dixon to the board of directors of the bank and holding company and expressed his appreciation for his willingness to serve in these important positions,” the release stated.

Elected to the board of directors for BCC Bankshares, Inc. and The Bank of Charlotte County for 2016 were Russell B. Clark, Guy B. Dixon, Stuart B. Fallen, Bobby A. Howard and John L. Pillow.