Community Bankers Trust Corporation Announces Payment of Dividend on TARP Preferred Stock
GLEN ALLEN, Va., March 15, 2012 /PRNewswire/ -- Community Bankers Trust Corporation, the holding company for Essex Bank (the "Company") (NYSE Amex: BTC), announced today that it has received regulatory approval for the February 2012 payment of its regular quarterly cash dividend with respect to its Fixed Rate Cumulative Perpetual Preferred Stock, Series A. The Company issued the Preferred Stock to the United States Department of the Treasury in connection with the Company's participation in the Treasury's TARP Capital Purchase Program in December 2008. The Company will make the payment, and will pay all outstanding interest on both the February payment and the six dividend payments that the Company had previously deferred, on March 16, 2012.
The Company also received regulatory approval for the payment of all outstanding interest payments that the Company has deferred under its trust preferred securities since September 30, 2010. The Company will make this payment also on March 16, 2012.
The Company's Board of Directors had previously approved all of these payments, subject to the approval of the Company's federal and state regulators as set forth in the formal written agreement that has been in place since April 2011.
Rex L. Smith, III, the Company's President and Chief Executive Officer, stated, "We are pleased to have the ability to begin making our TARP payments again, and to bring all interest payments on our trust preferred securities current at the same time. It shows the excellent progress that the Company continues to make, as well as the close relationship that we have with our regulators to actively address every supervisory issue regarding our safety and soundness. We believe that this is the first step towards more substantive relief under our written agreement and definitely the path to fulfill our TARP obligations. We will continue our efforts towards reducing non-performing loans and increasing profitability to ensure success. At this point, our trends certainly point in the right direction."
Following the payments described above, the Company will still have six quarterly dividend payments with respect to the Preferred Stock that remain accrued and unpaid. The failure to pay dividends for six dividend periods triggers the right for the holder of the Preferred Stock to appoint two directors to the Company's board. The Treasury has not requested to exercise this right to date.
About Community Bankers Trust Corporation
The Company is the holding company for Essex Bank, a Virginia state bank with 24 full-service offices, 13 of which are in Virginia, seven of which are in Maryland and four of which are in Georgia. The Company also operates one loan production office. Additional information is available on the Company's website at www.cbtrustcorp.com.
This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. These forward-looking statements include, without limitation, statements with respect to the Company's operations and goals. Actual results may differ materially from those included in the forward-looking statements due to a number of factors, including, without limitation, the effects of and changes in the following: the quality or composition of the Company's loan or investment portfolios, including collateral values and the repayment abilities of borrowers and issuers; assumptions that underlie the Company's allowance for loan losses; general economic and market conditions, either nationally or in the Company's market areas; the ability of the Company to comply with regulatory actions, and the costs associated with doing so; the interest rate environment; competitive pressures among banks and financial institutions or from companies outside the banking industry; real estate values; the demand for deposit, loan, and investment products and other financial services; the demand, development and acceptance of new products and services; the Company's compliance with, and the timing of future reimbursements from the FDIC to the Company under, shared loss agreements with the FDIC; assumptions and estimates that underlie the accounting for loan pools under the shared loss agreements; consumer profiles and spending and savings habits; the securities and credit markets; costs associated with the integration of banking and other internal operations; management's evaluation of goodwill and other assets on a periodic basis, and any resulting impairment charges, under applicable accounting standards; the soundness of other financial institutions with which the Company does business; inflation; technology; and legislative and regulatory requirements. Many of these factors and additional risks and uncertainties are described in the Company's Annual Report on Form 10-K for the year ended December 31, 2010 and other reports filed from time to time by the Company with the Securities and Exchange Commission. This press release speaks only as of its date, and the Company disclaims any duty to update the information in it.
SOURCE Community Bankers Trust Corporation