Community Bankers Trust Corporation Reports Results for First Quarter 2014

  Community Bankers Trust Corporation Reports Results for First Quarter 2014

Quarterly net income of $1.7 million is a 44.4% increase from the prior
quarter and 30% from prior year

PR Newswire

RICHMOND, Va., April 25, 2014

RICHMOND, Va., April 25, 2014 /PRNewswire/ --Community Bankers Trust
Corporation (the "Company") (NASDAQ: ESXB), the holding company for Essex Bank
(the "Bank"), today reported results for the first quarter of 2014 including
the following:

  oNet income for the first quarter of 2014 was $1.7 million compared with
    net income of $1.2 million for the fourth quarter of 2013, and net income
    of $1.3 million for the first quarter of 2013.
  oFully diluted earnings per common share were $0.08 for the first quarter
    of 2014 compared with $0.04 for the fourth quarter of 2013 and $0.05 for
    the first quarter of 2013.
  oNoninterest expense for the quarter decreased $1.2 million, or 11.6%, on a
    linked quarter basis and $533,000 year over year.
  oNet charge-offs were $34,000 during the first quarter, marking the lowest
    level in over four years. Annualized net charge-offs equaled only 0.02% of
    average loans for the quarter ended March 31, 2014 versus 0.14% for the
    fourth quarter of 2013 and 0.46% for the first quarter of 2013.
  oAsset quality remained solid, and no provision for loan losses was
    necessary. The ratio of the allowance for loan losses to total non-covered
    loans remained sound at 1.75% at March 31, 2014.
  oThe Company recently opened two new branches around the end of the first
    quarter, in Annapolis, Maryland and at the new corporate headquarters in
    the Deep Run office area in Richmond, Virginia.
  oFollowing quarter end, on April 23, 2014, the Company repaid the remaining
    $10,680,000 of its TARP preferred stock from the U.S. Department of the
    Treasury. The Company funded the repurchase through a third-party loan.



Community Bankers Trust Corporation logo.

Rex L. Smith, III, President and Chief Executive Officer of the Company and
the Bank, stated, "We are pleased with our first quarter results of continued
improvement in net income. Historically, the first quarter is difficult, so
todeliver such an improvement in profitability of 44.4% from the prior
quarter is a great start to 2014. Our previously stated strategies have
aligned the Company for further growth in earning assets while reducing
non-interest expenses related to past credit problems."

Smith added, "While net loan growth was down in the first quarter from
prepayments and sales of purchased USDA loans, our core non-covered loan
portfolio increased by $5 million for the quarter. Total non-covered loan
growth was 9.0%, or $48 million, over the last twelve months when excluding
USDA loan balances and loans related to the Georgia franchise. Our loan
pipeline is robust and we are extremely optimistic about our growth potential
in all of our markets. Furthermore, we opened our Annapolis branch in the
latter part of the quarter which enhances our ability to attract more business
relationships and increases our visibility in the area. Additionally we
repaid our outstanding TARP preferred stock investment from the United States
Department of the Treasury through a third-party loan. As previously
reported, the transactions will result in total expected after-tax savings of
at least $750,000."

RESULTS OF OPERATIONS

Net income was $1.7 million for the first quarter of 2014 compared with $1.3
million in the first quarter of 2013 and $1.2 million in the fourth quarter of
2013. Net income available to common shareholders was $1.7 million in the
first quarter of 2014 compared with $1.0 million in the first quarter of 2013
and $914,000 in the fourth quarter of 2013. Earnings per common share, basic
and fully diluted, were $0.08 per share for the first quarter of 2014 compared
with $0.05 per share for the first quarter of 2013 and $0.04 per share for the
fourth quarter of 2013.

On a linked quarter basis net income increased $530,000, or 44.4%. While net
interest income and non-interest income declined a combined $430,000, this
amount was more than offset by a reduction in non-interest expenses of $1.2
million during the quarter. Expenses related to other real estate owned
(OREO) declined $545,000, or 65.8%, and other operating expenses declined
$430,000, or 24.9%, from the fourth quarter of 2013. The reduction in OREO
expense was the direct result of fewer losses and write-downs on properties in
that portfolio. Other operating expenses were lower in the first quarter of
2014 compared with the fourth quarter of 2013 as, effective January 1, 2014,
the Company will no longer incur Delaware state franchise taxes.

The $399,000 increase in net income year over year was driven by a reduction
in non-interest expenses of $533,000, or 5.5%. The most notable decline was
evidenced in OREO expense, which equaled only $283,000 for the first quarter
of 2014, declining $454,000, or 61.6%, from the same quarter in 2013.
Management expects lower OREO expenses throughout 2014 as these properties
have been continually re-evaluated and written-down or sold.

The following table presents summary income statements for the three months
ended March 31, 2014, December 31, 2013 and March 31, 2013.

SUMMARY INCOME STATEMENT
(Dollars in thousands)       For the three months ended
                             March 31,        December 31,     March 31,

                             2014             2013             2013
Interest income             $    11,879  $    12,217  $    12,166
Interest expense             1,570            1,644            1,894
Net interest income        10,309           10,573           10,272
Provision for loan losses    -                -                -
Net interest income after
provision
 for loan losses            10,309           10,573           10,272
Noninterest income           1,301            1,467            1,326
Noninterest expense          9,178            10,386           9,711
Net income before income     2,432            1,654            1,887
taxes
Income tax expense           709              461              563
Net income                  1,723            1,193            1,324
Dividends on preferred stock 65               235              221
Accretion of preferred stock -                44               58
discount
Net income available
 to common shareholders     $           $          $     
                             1,658            914             1,045
EPS Basic                    $          $          $      
                             0.08             0.04             0.05
EPS Diluted                  $          $          $      
                             0.08             0.04             0.05

Interest Income

Interest income was $11.9 million for the first quarter of 2014, a decrease of
$338,000, or 2.8%, from the fourth quarter of 2013. Interest and fees on
loans declined very slightly, while interest income derived from the
securities portfolio declined $294,000 on a linked quarter basis. The yield
on the securities portfolio declined 34 basis points from 2.93% in the fourth
quarter of 2013 to 2.59% in the first quarter of 2014. The primary reason for
the decline was early pay-offs of SBA floating rate investments that were
purchased at a premium. The increased pre-payment speeds resulted in an
immediate absorption of unamortized premium which was fully expensed during
the first quarter. Management subsequently sold part of its position in its
SBA floater portfolio to mitigate further premium acceleration. Additionally,
the average balance of the securities portfolio declined $5.5 million on a
linked quarter basis.

Interest income declined $287,000 from $12.2 million during the first quarter
of 2013. Interest income on the non-covered loan portfolio declined $460,000
while interest income on the covered portfolio increased $302,000. The yield
on non-covered loans declined 46 basis points to 4.80%for the quarter
endedMarch 31, 2014 from the same period a year ago. Continued competitive
pricing for new loans precipitated this decline. The increase in income on
covered loans was the direct result of two payments made on an acquisition,
development, and construction loan. These payments aretreated as cash income
as these pools had previously been written down to a zero carrying value.
Interest income on the securities portfolio declined $132,000 when
comparingthe quarter ended March 31, 2014 versus the same quarter a year
ago. While the yield on the portfolio remained virtually unchanged, average
securities balances were $18.6 million lower in the first quarter of 2014 than
the same period in the prior year.

Interest Expense

Interest expense was $1.6 million for the first quarter of 2014, declining
$74,000, or 4.5%, from the fourth quarter of 2013. The cost of interest
bearing deposits remained unchanged at 0.69% for the first quarter of 2014 and
the fourth quarter of 2013, yet average interest bearing deposits balances
declined $42.1 million during the first quarter of 2014 primarily as a result
of the sale of the Georgia operations in November 2013. The Company funded
the sale in part with Federal Home Loan Bank (FHLB) advances and was able to
realize an improvement in the cost of its FHLB borrowings of 12 basis points
during the first quarter, to 0.80%.

Year over year, interest expense declined $324,000, from $1.9 million in the
first quarter of 2013. Interest expense related to interest bearing deposits
declined $293,000 or 17.2%. The average balances in these deposits declined
$52.9 million year over year. This decline was primarily the result of the
sale of the Georgia branches. Meanwhile, the Bank increased its level of FHLB
borrowings to fund the sale. Over the same time frame, average FHLB advances
increased $27.3 million, yet the expense associated with the borrowings
declined $31,000. This was due to a 65 basis point improvement on all FHLB
advances to 0.80% for the quarter ended March 31, 2014.

Net Interest Income

Net interest income was $10.3 million for the quarter ended March 31, 2014,
compared with $10.6 million for the quarter ended December 31, 2013.This
represents a decrease of $264,000, or 2.5%.The decline in net interest
income on a linked quarter basis is the direct result of the factors noted
above in the Interest Income section. The decline in interest income was
partially offset by a $74,000 reduction in interest expense. The tax
equivalent net interest margin increased 6 basis points from 4.22% in the
fourth quarter of 2013 to 4.28% in the first quarter of 2014. Likewise, the
interest spread increased from 4.17% to 4.23% on a linked quarter basis.

Year-over-year, net interest income increased slightly by $37,000, or 0.36%,
as the Company's net interest margin improved 11 basis points over this time
frame. The Company was able to maintain the same yield on its earning asset
base at 4.93% while lowering its cost of funding 13 basis points to 0.70% for
the quarter ended March 31, 2014. As mentioned in the Interest Expense
section above, this was the result of improved funding costs related to FHLB
advances.

The following table compares the Company's net interest margin, on a
tax-equivalent basis, for the three months ended March 31, 2014, December 31,
2013 and March 31, 2013.

NET INTEREST MARGIN
(Dollars in thousands)               For the three months ended
                                     March 31,  December 31,  March 31,

                                     2014       2013           2013
Average interest earning assets      $ 984,026  $  1,001,665   $ 1,006,528
Interest income                      $ 11,879   $  12,217      $ 12,166
Interest income - tax equivalent     $ 11,960   $  12,305      $ 12,243
Yield on interest earning assets       4.93%       4.87%         4.93%
Average interest bearing liabilities $ 904,639  $  926,476     $ 929,483
Interest expense                     $ 1,570    $  1,644       $ 1,894
Cost of interest bearing liabilities   0.70%       0.70%         0.83%
Net interest income                  $ 10,309   $  10,573      $ 10,272
Net interest income - tax equivalent $ 10,390   $  10,661      $ 10,349
Interest spread                        4.23%       4.17%         4.10%
Net interest margin                    4.28%       4.22%         4.17%

Provision for Loan Losses

The Company did not record a provision for loan losses in 2013 or in the first
quarter of 2014 with respect to either its non-covered loan portfolio or its
FDIC covered loan portfolio. For the non-covered loan portfolio, this was the
direct result of continued improvement in loan quality as evidenced by the
lowest aggregate amount of net charge-offs in over four years. The Company's
level of classified and "impaired" loans continue to remain low, as discussed
below.

Noninterest Income

Noninterest income was $1.3 million for the first quarter of 2014 compared
with $1.5 million for the fourth quarter of 2013. Gain on sales of securities
was $355,000 in the first quarter of 2014, an increase of $283,000 over gain
on sales of securities of $72,000 in the fourth quarter of 2013. This
increase was more than offset by declines in service charge income and
gain/(loss) on the sale of loans. Service charge income declined $145,000
during the first quarter of 2014 to equal $489,000. This decline was driven
by the reduction of service charge income derived from the Georgia branches
which the Bank received for part of the fourth quarter of 2013. Furthermore,
prolonged periods of inclement weather during the first quarter of 2014
hampered account usage. Gain/(loss) on the sale of loans was down $207,000,
or 81.2%, from the fourth quarter of 2013. Management recognized $48,000 on
the sale of USDA guaranteed loans during the quarter, while the Company
recognized the entire gain on the Georgia loan portfolio during the fourth
quarter of 2013.

Year over year, noninterest income decreased $25,000, or 1.9%, from first
quarter of 2013. Service charges on deposit accounts declined $174,000, or
26.2%, year over year due mostly to the sale of the Georgia branches. The
reduction in service charge income was partially offset by increases in
securities gains as well as gains on the sale of loans. Securities gains
during the first quarter of 2014 were $77,000 higher than the same period in
2013. As mentioned above, management sold USDA loans resulting in $48,000 of
gains for the quarter versus no loan sale gains in the first quarter of 2013.

Noninterest Expense

Noninterest expenses totaled $9.2 million for the three months ended March 31,
2014 and $10.4 million for the quarter ended December 31, 2013, a decrease of
$1.2 million, or 11.6%. The majority of the decline was evidenced in three
categories: OREO expenses, other operating expenses, and FDIC indemnification
asset amortization. OREO expenses declined $545,000, or 65.8%, during the
first quarter of 2014 from the fourth quarter of 2013. Management took
additional charges in the fourth quarter to conservatively mark OREO
properties. Smaller write-downs were recognized in the first quarter of
2014. Other operating expenses declined $430,000, or 24.9%. A large
component of this decline was the final recognized expense of $188,000 to the
state of Delaware for franchise taxes in the fourth quarter of 2013. Lastly,
the Company benefitted from $142,000 in decreased indemnification asset
amortization for the first quarter of 2014.

Noninterest expenses declined $533,000, or 5.5%, when comparing the first
quarter of 2014 to the same period in 2013. The single largest decline was
evidenced in OREO expenses. These expenses declined from $737,000 in the
first quarter of 2013 to $283,000 in the first quarter of 2014. The overall
OREO portfolio has been marked accordingly and fewer losses are expected for
the rest of 2014.

Income Taxes

Income tax expense was $709,000 for the three months ended March 31, 2014,
compared with income tax expense of $461,000 in the fourth quarter of 2013.
Income tax expense was $563,000 in the first quarter of 2013.

FINANCIAL CONDITION

During the first quarter of 2014, total assets increased $12.2 million to
$1.102 billion at March 31, 2014. Total assets declined $15.4 million, or
1.4%, over the past year from total assets of $1.117 billion at March 31,
2013. Total loans were $665.5million at March 31, 2014, decreasing $4.0
million since December 31, 2013 and increasing $3.3 million since March 31,
2013.Total non-covered loans were $593.8 million at March 31, 2014 and
$596.3 million at December 31, 2013. While traditional non-covered loan
growth was positive at $4.8 million during the first quarter of 2014, the
purchased government guaranteed USDA loan portfolio declined approximately
$7.4 million from year end. This decline was the result of a combination of
pre-payments on USDA loans as well as management selling USDA loans at gains
to optimize yield.

Year over year, non-covered loan growth of $13.8 million outpaced covered loan
decreases of $10.5 million. Excluding the aforementioned reduction of USDA
loans during the first quarter of 2014, traditional loan growth was brisk for
the year, and management expects continued solid traditional loan growth
throughout 2014.

The following table shows the composition of the Company's non-covered loan
portfolio at March 31, 2014, December 31, 2013 and March 31, 2013.

NON-COVERED LOANS
(Dollars in           March 31, 2014     December 31, 2013  March 31, 2013
thousands)
                                 % of               % of               % of
                                 Non-               Non-               Non-
                      Amount             Amount             Amount
                                 Covered            Covered            Covered

                                 Loans              Loans              Loans
Mortgage loans on
real estate:
   Residential 1-4    $ 146,069  24.60%  $ 144,382  24.21%  $ 137,302  23.68%
   family
   Commercial           254,666  42.89%    247,284  41.47%    239,794  41.35%
   Construction and     54,914   9.25%     55,278   9.27%     60,565   10.44%
   land development
   Second mortgages     6,623    1.12%     6,854    1.15%     7,326    1.26%
   Multifamily          35,528   5.98%     35,774   6.00%     36,344   6.27%
   Agriculture          8,134    1.37%     9,565    1.60%     9,616    1.66%
    Total real        505,934  85.21%    499,137  83.70%    490,947  84.66%
   estate loans
Commercial loans        80,942   13.63%    90,142   15.12%    80,942   13.96%
Consumer installment    5,492    0.92%     5,623    0.94%     6,523    1.12%
loans
All other loans         1,430    0.24%     1,435    0.24%     1,524    0.26%
    Gross loans       593,798  100.00%   596,337  100.00%   579,936  100.00%
Allowance for loan      (10,410)           (10,444)           (12,258)
losses
Net unearned
income/unamortized
premium
   on loans             (188)              (164)              (129)
Non-covered loans,
net of unearned       $ 583,200          $ 585,729          $ 567,549
income

The Company's securities portfolio, excluding equity securities, increased
$3.6 million, or 1.2%, from $294.3 million at December 31, 2013 to $298.0
million at March 31, 2014. Realized gains of $355,000 occurred during the
first quarter of 2014 through sales and call activity. As mentioned earlier
in this release, the SBA floating rate portion of the investment portfolio
evidenced some unforeseen pre-payment activity during the first quarter, which
resulted in the acceleration of unamortized premiums paid on these
securities. Subsequently, management sold additional SBA floating rate
securities to mitigate the pre-payment anomaly and sold some longer term
municipal securities. This was a strategic decision to mitigate duration risk
in the municipal portfolio.

The Company had cash and cash equivalents of $38.9 million and $23.8 million
at March 31, 2014 and December 31, 2013, respectively. Cash and cash
equivalents were $24.1 million at March 31, 2013. There were no Federal funds
purchased or securities sold under agreement to repurchase (repos) at March
31, 2014 versus $6.0 million of repos at December 31, 2013.

The following table shows the composition of the Company's securities
portfolio, excluding equity securities, at March 31, 2014, December 31, 2013
and March 31, 2013.

SECURITIES
PORTFOLIO
(Dollars
in           March 31, 2014        December 31, 2013      March 31, 2013
thousands)
             Amortized  Fair   Amortized   Fair   Amortized   Fair
             Cost       Value    Cost        Value    Cost        Value
Securities
Available
for Sale
U.S.
Treasury
issue and
other
 U.S.
Government $ 107,485     106,628 $ 99,789     $ 98,987  $ 121,353    $ 121,355
agencies
U.S.
Government   -           -         487          486       -            -
sponsored
agencies
State,
county and   133,226     131,864   138,884      134,096   117,964      123,059
municipal
Corporate
and other    5,502       5,490     6,369        6,349     5,453        5,519
bonds
Mortgage
backed
securities
- U.S.
Government
         2,602       2,477     3,608        3,439     10,996       11,272
agencies
Mortgage
backed
securities
- U.S.
Government

sponsored    25,126      24,886    22,631       22,420    12,634       12,885
agencies
 Total
securities $ 273,941     271,345 $ 271,768    $ 265,777 $ 268,400    $ 274,090
available
for sale
             March 31, 2014        December 31, 2013      March 31, 2013
             Amortized  Fair     Amortized   Fair     Amortized   Fair
             Cost       Value    Cost        Value    Cost        Value
Securities
Held to
Maturity
State,
county and $ 9,069       9,769   $ 9,385      $ 10,103  $ 11,819     $ 12,865
municipal
Mortgage
backed
securities
- U.S.
Government
         6,202       6,574     6,604        7,002     8,360        8,923
agencies
Mortgage
backed
securities
- U.S.
Government

sponsored    11,354      11,973    12,574       13,200    18,498       19,534
agencies
 Total
securities $ 26,625      28,316  $ 28,563     $ 30,305  $ 38,677     $ 41,322
held to
maturity

Interest bearing deposits at March 31, 2014 were $831.2 million, an increase
of $9.0million from December31, 2013. Total time deposits increased $13.8
million, or 2.5%, during the first quarter of 2014. NOW and MMDA account
balances declined $3.5 million and $3.1 million, respectively, during the
first quarter. The increase in time deposits was generated by two promotions
that management ran during the first quarter of 2014. These were efforts to
replace brokered time deposits obtained during the fourth quarter of 2013 to
replace the sale of the Georgia deposit base.

FHLB advances were $76.9 million at March 31, 2014 compared with $77.1 million
at December 31, 2013, and $49.7 million at March 31, 2013. The Company has
increased the level of FHLB advances due to the low cost nature of this
funding source and to assist with funding the sale of the Georgia franchise in
the fourth quarter of 2013.

The following table compares the mix of interest bearing deposits for March
31, 2014, December 31, 2013 and March 31, 2013.

INTEREST BEARING
DEPOSITS
(Dollars in thousands)
                           March 31, 2014   December 31, 2013   March 31, 2013
NOW                      $ 98,594         $ 102,111           $ 126,784
MMDA                       91,077           94,170              112,473
Savings                    76,950           75,159              79,988
Time deposits less than    242,139          235,482             284,936
$100,000
Time deposits $100,000     322,473          315,287             256,547
and over
 Total interest        $ 831,233        $ 822,209           $ 860,728
bearing deposits

Shareholders' equity was $110.6 million at March 31, 2014 and $106.7 million
at December 31, 2013. The change in equity was driven by earnings retention as
well as a $2.2 million improvement in other comprehensive income related to
the gains and losses in the investment portfolio.

Asset Quality – non-covered assets

Nonaccrual loans were $12.6 million at March 31, 2014, increasing slightly
from $12.1 million at December 31, 2013. Nonaccrual loans were $19.0 million
at March 31, 2013. The $540,000 increase from December 31, 2013 was the net
result of $1.4 million in additions to nonaccrual loans and $836,000 in
reductions. With respect to the reductions to nonaccrual loans, $400,000 were
returned to accruing status, $113,000 were charged off, and $323,000 were the
result of payments to existing credits.

Total nonperforming assets of $18.1 million at March 31, 2014 represented a
decrease of $265,000 from December 31, 2013. The decline in non-performing
assets was evidenced by an $805,000 reduction in non-covered OREO balances
from year end 2013. Management continues to work OREO aggressively and has
taken prudent periodic write-downs to effectively move properties out of the
portfolio and continue to improve the quality of the balance sheet.

There were net charge-offs of $34,000 in the first quarter of 2014 compared
with $209,000 in the fourth quarter of 2013 and $662,000 in the first quarter
of 2013.

The allowance for loan losses equaled 82.33% of non-covered nonaccrual loans
at March 31, 2014 compared with 86.28% at December 31, 2013, and 64.64% at
March 31, 2013. The ratio of the allowance for loan losses to total
nonperforming assets was 57.56% at March 31, 2014 compared with 56.92% at
December 31, 2013 and 42.07% at March 31, 2013. The ratio of nonperforming
assets to loans and other real estate owned continued to decline. The ratio
was 3.01% at March 31, 2014 and 3.05% at December 31, 2013.

The following table reconciles the activity in the Company's non-covered
allowance for loan losses, by quarter, for the past five quarters.

CREDIT QUALITY
(Dollars in thousands)     2014      2013
                           First     Fourth    Third      Second     First
                           Quarter   Quarter   Quarter    Quarter    Quarter
Allowance for loan losses:
Beginning of period        $ 10,444  $ 10,653  $ 11,523   $ 12,258   $ 12,920
Provision for loan losses    -         -         -          -          -
Charge-offs                  (152)     (263)     (1,018)    (1,302)    (908)
Recoveries                   118       54        148        567        246
Net (charge-offs) recovery   (34)      (209)     (870)      (735)      (662)
End of period              $ 10,410  $ 10,444  $ 10,653   $ 11,523   $ 12,258

The following table sets forth selected asset quality data, excluding FDIC
covered assets, and ratios for the dates indicated:

ASSET QUALITY (NON-COVERED)
(Dollars in thousands)       2014      2013
                             March     December  September  June      March
                             31        31        30         30        31
Non-accruing loans           $ 12,645  $ 12,105  $  13,044  $ 15,644  $ 18,963
Loans past due over 90 days    -         -          -         -         465
and accruing interest
Total nonperforming            12,645    12,105     13,044    15,644    19,428
non-covered loans
Other real estate owned        5,439     6,244      8,496     7,593     9,712
non-covered
Total nonperforming          $ 18,084  $ 18,349  $  21,540  $ 23,237  $ 29,140
non-covered assets
Allowance for loan losses to   1.75%     1.75%      1.87%     1.96%     2.11%
loans
Allowance for loan losses to   57.56%    56.92%     49.45%    49.59%    42.07%
nonperforming assets
Allowance for loan losses to   82.33%    86.28%     81.67%    73.66%    64.64%
nonaccrual loans
Nonperforming assets to        3.02%     3.05%      3.73%     3.90%     4.94%
loans and other real estate
Net charge-offs for quarter
to average loans,
 annualized                  0.02%     0.14%      0.59%     0.50%     0.46%

A further breakout of nonaccrual loans, excluding covered loans, at March 31,
2014, December 31, 2013 and March 31, 2013 is below:

NON-COVERED
NONACCRUAL LOANS
(Dollars in         March 31, 2014      December 31, 2013   March 31, 2013
thousands)
                             % of Non-           % of Non-           % of Non-

                    Amount   Covered    Amount   Covered    Amount   Covered

                             Loans               Loans               Loans
Mortgage loans on
real estate:
 Residential 1-4    $ 4,153  0.70%      $ 4,229  0.71%      $ 5,717  0.99%
 family
 Commercial           2,208  0.37%        1,382  0.23%        3,853  0.67%
 Construction and     5,907  0.99%        5,882  0.99%        8,772  1.51%
 land development
 Second mortgages     225    0.04%        225    0.04%        141    0.02%
 Multifamily          -      -          - -      -            -      -
 Agriculture          -      -            205    0.03%        234    0.04%
  Total real        12,493 2.10%        11,923 2.00%        18,717 3.23%
 estate loans
Commercial loans      57     0.01%        127    0.02%        161    0.03%
Consumer              95     0.02%        55     0.01%        85     0.01%
installment loans
All other loans       -      -            -      -            -      -
  Gross loans     $ 12,645 2.13%      $ 12,105 2.03%      $ 18,963 3.27%

Capital Requirements

Total shareholders' equity increased $4.0 million in the first quarter of 2014
and was $110.6 million at March 31, 2014. The Company's ratio oftotal
risk-based capital was 17.3% at March 31, 2014 compared with 16.8% at December
31, 2013. The tier 1 risk-based capital ratio was 16.1% at March 31, 2014 and
15.6% at December 31, 2013. The Company's tier 1 leverage ratio was 10.1% at
March 31, 2014 and 9.5% at December 31, 2013.All capital ratios exceed
regulatory minimums to be considered well capitalized.

Following quarter end, on April 23, 2014, the Company repaid the remaining
$10,680,000 of its TARP preferred stock from the U.S. Department of the
Treasury. The Company funded the repurchase through a third-party loan. All
Capital ratios will remain well above regulatory minimums upon the retirement
of this TARP Capital.

Earnings Conference Call and Webcast

The Company will host a conference call for the financial community on Friday,
April 25, 2014, at 10:00 a.m. Eastern Time to discuss the first quarter 2014
financial results. The public is invited to listen to this conference call by
dialing877-870-4263 at least five minutes prior to the call. Interested
parties may also listen to this conference call through the internet by
accessing the "Corporate Overview – Corporate Profile" page of the Company's
internet site at www.cbtrustcorp.com.

A replay of the conference call will be available from 12:00 noon Eastern Time
on April 25, 2014, until 9:00 a.m. Eastern Time on May 5, 2014. The replay
will be available by dialing 877-344-7529 and entering access code 10044104 or
through the internet by accessing the "Corporate Overview – Corporate
Profile" page of the Company's internet site at www.cbtrustcorp.com.

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 December 31, 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.

Consolidated Balance Sheets
Unaudited Condensed
(Dollars in thousands)
                             March 31, 2014  December 31, 2013  March 31, 2013
 Assets
Cash and due from banks      $   11,139      $    10,857        $   10,477
Interest bearing bank            27,782           12,978            13,591
deposits
 Total cash and cash            38,921           23,835            24,068
equivalents
Securities available for         271,345          265,777           274,090
sale, at fair value
Securities held to maturity      26,625           28,563            38,677
Equity securities,               7,772            8,358             7,198
restricted, at cost
 Total securities               305,742          302,698           319,965
Loans held for sale              -                100               1,145
Loans not covered by FDIC        593,610          596,173           579,807
shared-loss agreements
Loans covered by FDIC            71,860           73,275            82,364
shared-loss agreements
Allowance for loan losses        (10,410)         (10,444)          (12,258)
(non-covered)
Allowance for loan losses        (484)            (484)             (484)
(covered)
 Net loans                      654,576          658,520           649,429
Bank premises and equipment      29,139           27,872            33,237
Other real estate owned,         5,439            6,244             9,712
non-covered
Other real estate owned,         3,211            2,692             2,483
covered by FDIC
FDIC receivable                  433              368               750
Bank owned life insurance        20,956           20,795            20,274
Core deposit intangibles,        6,144            6,621             9,731
net
FDIC indemnification asset       23,846           25,409            31,517
Other assets                    13,295           14,378            14,790
 Total assets             $   1,101,702   $    1,089,532     $   1,117,101
 Liabilities
Deposits:
 Noninterest bearing          73,935           70,132            81,330
 Interest bearing             831,233          822,209           860,728
 Total deposits             905,168          892,341           942,058
Federal funds purchased and
securities sold under            -                6,000             992

agreements to repurchase
Federal Home Loan Bank           76,946           77,125            49,654
advances
Trust preferred capital          4,124            4,124             4,124
notes
Other liabilities                4,817            3,283             3,938
 Total liabilities            991,055          982,873           1,000,766
 Shareholders' Equity
Preferred stock (5,000,000
shares authorized $0.01 par

value; 10,680, 10,680 and        10,680           10,680            17,680
17,680 shares issued and

outstanding, respectively)
Discount on preferred       -                -                 (176)
stock
Warrants on preferred       1,037            1,037             1,037
stock
Common stock (200,000,000
shares authorized $0.01

par value; 21,720,221 shares     217              217               218
issued and outstandingat

March 31, 2014)
Additional paid in capital       144,747          144,656           144,463
Accumulated deficit              (44,163)         (45,822)          (49,564)
Accumulated other                (1,871)          (4,109)           2,677
comprehensive income
 Total shareholders'       $   110,647     $    106,659       $   116,335
equity
 Total liabilities and     $   1,101,702   $    1,089,532     $   1,117,101
shareholders' equity





Consolidated Statements of
Income
Unaudited Condensed
                               Three

(Dollars in thousands)         months Three months ended

                               ended
                               March    December   September   June     March
                               31,     31,        30,         30,      31,

                               2014     2013       2013        2013     2013
Interest and dividend
income
Interest and fees on loans $ 7,051  $ 7,050    $ 7,513     $ 7,622  $ 7,511
Interest and fees on FDIC     2,961    2,994      3,538       2,745    2,659
covered loans
Interest on federal funds     -        -          -           1        2
sold
Interest on deposits in       13       25         11          14       8
other banks
Investments (taxable)        1,698    1,976      1,934       1,945    1,838
Investments (nontaxable)     156      172        175         164      148
Total interest income        11,879   12,217     13,171      12,491   12,166
Interest expense
Interest on deposits         1,408    1,501      1,568       1,600    1,701
Interest on short-term        1        -          1           2        1
borrowings
Interest on other borrowed    161      143        180         189      192
funds
Total interest expense       1,570    1,644      1,749       1,791    1,894
Net interest income          10,309   10,573     11,422      10,700   10,272
Provision for loan losses    -        -          -           -        -
Net interest income after
provision for loan             10,309   10,573     11,422      10,700   10,272

losses
Noninterest income
Gain/(loss) on sale of        355      72         38          130      278
securities, net
Service charges on deposit    489      634        741         701      663
accounts
Gain/(loss) on sale of        48       255        (614)       -        -
other loans, net
Other                       409      506        428         507      385
 Total         1,301    1,467      593         1,338    1,326
noninterest income
Noninterest expense
Salaries and employee         3,923    3,991      4,096       3,901    3,993
benefits
Occupancy expenses           648      647        690         717      663
Equipment expenses           219      248        276         247      267
Legal fees                   28       20         24          38       13
Professional fees            107      49         52          139      50
FDIC assessment              207      228        225         223      167
Data processing fees         494      505        485         551      537
FDIC indemnification asset    1,498    1,640      1,716       1,592    1,501
amortization
Amortization of               477      506        565         566      565
intangibles
Other real estate expenses   283      828        (33)        502      737
Other operating expenses     1,294    1,724      1,337       1,282    1,218
Total noninterest expense    9,178    10,386     9,433       9,758    9,711
Net income before income      2,432    1,654      2,582       2,280    1,887
taxes
Income tax expense           709      461        800         673      563
Net income                   1,723    1,193      1,782       1,607    1,324
Dividends on preferred        65       235        208         221      221
stock
Accretion of discount on      -        44         73          59       58
preferred stock
Net income available to
common
 shareholders            $ 1,658  $ 914      $ 1,501     $ 1,327  $ 1,045



NET INTEREST
MARGIN ANALYSIS
AVERAGE BALANCE
SHEETS
(Dollars in
thousands)
                  Three months ended March 31,    Three months ended December     Three months ended March 31,
                  2014                            31, 2013                        2013
                                         Average                         Average                         Average
                  Average      Interest  Rates    Average      Interest  Rates    Average      Interest  Rates
                  Balance      Income/   Earned/  Balance      Income/   Earned/  Balance      Income/   Earned/
                  Sheet        Expense   Paid     Sheet        Expense   Paid     Sheet        Expense   Paid
ASSETS:
 Loans, including $ 595,614    $ 7,051   4.80%    $ 585,461    $ 7,050   4.78%    $ 579,635    $ 7,511   5.26%
 fees
 Loans covered by   72,770       2,961   16.50%     75,252       2,994   15.79%     82,776       2,659   13.03%
 FDIC loss share
  Total loans   668,384      10,012  6.08%      660,713      10,044  6.03%      662,411      10,170  6.23%
 Interest bearing   16,309       13      0.31%      35,304       25      0.28%      16,402       8       0.20%
 bank balances
 Federal funds      -            -       -          783          0       0.10%      9,811        2       0.10%
 sold
 Investments        279,295      1,698   2.43%      283,516      1,976   2.79%      300,001      1,838   2.45%
 (taxable)
 Investments (tax   20,038       237     4.71%      21,349       260     4.88%      17,903       225     5.02%
 exempt)
  Total         984,026      11,960  4.93%      1,001,665    12,305  4.87%      1,006,528    12,243  4.93%
 earning assets
 Allowance for      (10,955)                        (11,133)                        (13,470)
 loan losses
 Non-earning        113,705                         128,596                         132,378
 assets
  Total       $ 1,086,776                     $ 1,119,128                     $ 1,125,436
 assets
LIABILITIES AND
 SHAREHOLDERS'
 EQUITY
 Demand -         $ 190,804    $ 142     0.30%    $ 220,656    $ 168     0.30%    $ 245,714    $ 191     0.32%
 interest bearing
 Savings            75,601       66      0.35%      79,572       70      0.35%      78,377       62      0.32%
 Time deposits      555,867      1,200   0.88%      564,191      1,263   0.89%      551,125      1,448   1.07%
  Total         822,272      1,408   0.69%      864,419      1,501   0.69%      875,216      1,701   0.79%
 deposits
 Short-term         1,134        1       0.51%      107          -       0.00%      329          1       0.72%
 borrowings
 FHLB and other     81,233       161     0.80%      61,950       143     0.92%      53,938       192     1.45%
 borrowings
  Total
 interest-bearing   904,639      1,570   0.70%      926,476      1,644   0.70%      929,483      1,894   0.83%
 liabilities
 Non-interest       68,594                          80,172                          75,551
 bearing deposits
 Other              3,921                           3,874                           4,117
 liabilities
  Total         977,154                         1,010,522                       1,009,151
 liabilities
 Shareholders'      109,622                         108,606                         116,285
 equity
  Total
 liabilities and
 
 stockholders'    $ 1,086,776                     $ 1,119,128                     $ 1,125,436
 equity
 Net interest                  $ 10,390                        $ 10,661                        $ 10,349
 earnings
 Interest spread                         4.23%                           4.17%                           4.10%
 Net interest                            4.28%                           4.22%                           4.17%
 margin

Non-GAAP Financial Measures

The information below presents certain financial information determined by
methods other than in accordance with accounting principles generally accepted
in the United States of America (GAAP). Common tangible book value equals
total shareholders' equity less preferred stock, goodwill and identifiable
intangible assets, and common tangible book value per share is computed by
dividing common tangible book value by the number of common shares
outstanding. Common tangible assets equal total assets less preferred stock,
goodwill and identifiable intangible assets.

Management believes that common tangible book value and the ratio of common
tangible book value to common tangible assets are meaningful because they are
some of the measures that the Company and investors use to assess capital
adequacy. Management believes that presenting the change in common tangible
book value per share, the change in stock price to common tangible book value
per share, and the change in the ratio of common tangible book value to common
tangible assets provide meaningful period-to-period comparisons of these
measures.

These measures are a supplement to GAAP used to prepare the Company's
financial statements and should not be viewed as a substitute for GAAP
measures. In addition, the Company's non-GAAP measures may not be comparable
to non-GAAP measures of other companies. The following table reconciles these
non-GAAP measures from their respective GAAP basis measures.

                 March 31,           December 31,        March 31,

                 2014                2013                 2013
 Common Tangible
 Book Value
 Total           $                $                 $   
 stockholder's   110,647,000         106,659,000          116,335,000
 equity
 Preferred stock 11,717,000          11,717,000           18,541,000
 (net)
 Core deposit
 intangible      6,144,000           6,621,000            9,731,000
 (net)
 Common tangible 92,786,000          88,321,000           88,063,000
 book value
 Shares          21,720,221          21,709,096           21,682,963
 outstanding
 Common tangible $           $            $        
 book value per   4.27              4.07               4.06
 share
 Stock Price     $           $            $        
                  4.02              3.76               3.29
 Price/common    94.1%               92.4%                81.0%
 tangible book
 Common tangible
 book/common
 tangible assets
 Total assets    $                  $  1,089,532,000   $  1,117,101,000
                 1,101,702,000
 Preferred stock 11,717,000          11,717,000           18,541,000
 (net)
 Core deposit    6,144,000           6,621,000            9,731,000
 intangible
 Common tangible 1,083,841,000       1,077,194,000        1,088,829,000
 assets
 Common tangible 92,786,000          88,321,000           88,063,000
 book
 Common tangible
 equity to       8.56%               8.20%                8.09%
 assets



Logo - http://photos.prnewswire.com/prnh/20140129/PH54398LOGO

SOURCE Community Bankers Trust Corporation

Website: http://www.cbtrustcorp.com
Contact: Bruce E. Thomas, Executive Vice President/Chief Financial Officer,
Community Bankers Trust Corporation, 804-934-9999
 
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