Community Bankers Trust Corporation Announces Repayment of Outstanding TARP Preferred Stock

 Community Bankers Trust Corporation Announces Repayment of Outstanding TARP
                               Preferred Stock

PR Newswire

RICHMOND, Va., April 23, 2014

RICHMOND, Va., April 23, 2014 /PRNewswire/ --Community Bankers Trust
Corporation (NASDAQ: ESXB), the holding company for Essex Bank, announced
today that it has repaid its outstanding TARP preferred stock investment from
the United States Department of the Treasury. To effect this repayment, on
April 23, 2014, the Company repurchased all 10,680 shares of Fixed Rate
Cumulative Perpetual Preferred Stock, Series A, that were outstanding prior to
the repayment.

Community Bankers Trust Corporation logo

The Company announced that it also will notify Treasury that it intends to
redeem the warrant associated with the TARP preferred stock investment. The
Treasury holds a warrant to purchase 780,000 shares of the Company's common
stock at an exercise price of $3.40, which it acquired in December 2008.

The Company funded the repurchase of the TARP preferred stock, and will fund
the redemption of the associated warrant, through a term loan with SunTrust
Bank. The loan, which has a maturity date of April 21, 2017, requires that
the Company make quarterly payments of 7.5% of the initial outstanding
principal during a six-quarter period beginning with the quarter ending
December 31, 2014, quarterly payments of 10% of the initial outstanding
principal during the subsequent four-quarter period and the remaining
principal amount at maturity. The interest rate on the loan is LIBOR plus
3.5%. The Company will fund payments on the loan through the earnings of its
banking subsidiary.

The form of the repurchase was a redemption under the terms of the TARP
preferred stock. The Company paid the Treasury $10,861,560, which represented
100% of the par value of the preferred stock repurchased plus accrued
dividends with respect to such shares.

The transactions will result in total expected after-tax savings of at least
$750,000, based on the Company's prior projections on the repayment of the
TARP investment through operating earnings. Prior to the redemption, the TARP
preferred stock accrued dividends, paid on an after-tax basis, on a quarterly
basis at a rate of 9% per year since February 2014. Interest payments to
SunTrust, which will be made prior to giving effect to taxes, will be paid on
the initial outstanding principal at the rate of LIBOR plus 3.5%, resulting in
a current rate of 3.73%. In addition, the redemption of the TARP investment
will have no immediate negative impact on the Bank's capital levels, and the
Company's risk-based capital ratios will all remain above the "well
capitalized" regulatory thresholds.

Rex L. Smith, III, the Company's President and Chief Executive Officer,
stated, "As I have said all along, our plan has been to repay the TARP funds
as soon as we could and without any dilution to our shareholders. We have now
done that. We are excited with the steps that we have taken this week, as it
removes the last remnant of our turnaround period. While we recognize that we
are replacing one form of indebtedness with another one, the savings from
these steps is significant. It is also confirmation from our regulators and
our lender of the confidence in our on-going positive operating performance
and strong capital position, both of which contribute to viable long-term
strategies and prospects."

About Community Bankers Trust Corporation and Essex Bank

Community Bankers Trust Corporation is the holding company for Essex Bank, a
Virginia state bank with 21 full-service offices, 14 of which are in Virginia
and seven of which are in Maryland. The Bank also operates two loan
production offices in Virginia. The Bank opened a new branch office in
Annapolis, Maryland on March 25, 2014 and a branch office at its new
headquarters in Richmond, Virginia on April 7, 2014.

Additional information on the Bank is available on the Bank's website at
www.essexbank.com. For information on Community Bankers Trust Corporation,
please visit its website at www.cbtrustcorp.com.

Forward-Looking Statements

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, performance,
future strategy 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 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 performance of vendors or other parties with which
the Company does business; time and costs associated with de novo branching,
acquisitions, dispositions and similar transactions; the realization of gains
and expense savings from acquisitions, dispositions and similar transactions;
assumptions and estimates that underlie the accounting for loan pools under
the shared-loss agreements; consumer profiles and spending and savings habits;
levels of fraud in the banking industry; the level of attempted cyber attacks
in the banking industry; the securities and credit markets; costs associated
with the integration of banking and other internal operations; 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 December31, 2013 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.

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SOURCE Community Bankers Trust Corporation

Website: http://www.cbtrustcorp.com
Contact: John M. Oakey, III, Community Bankers Trust Corporation, 804-934-9999
 
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