Community Bankers Trust Corporation Announces Repurchase of Outstanding TARP
RICHMOND, Va., June 4, 2014
RICHMOND, Va., June 4, 2014 /PRNewswire/ -- Community Bankers Trust
Corporation (NASDAQ: ESXB), the holding company for Essex Bank, announced
today that it has repurchased the warrant that had been associated with the
Company's TARP preferred stock investment from the United States Department of
the Treasury. The Company paid Treasury $780,000 to repurchase the warrant,
which has been cancelled. There are no other investments from the Company's
participation in TARP that remain outstanding.
Community Bankers Trust Corporation logo.
The Company had originally issued the warrant, which permitted Treasury to
purchase 780,000 shares of the Company's common stock at an exercise price of
$3.40, in December 2008.
The Company repaid its remaining TARP preferred stock investment in April 2014
and funded that repurchase through a term loan with SunTrust Bank. The
Company used its own funds to repurchase the warrant. As a result, the
initial principal balance of the term loan will remain at $10,680,000, which
was the repurchase price of the remaining preferred stock investment. The
Company will fund payments on the loan through the earnings of its banking
The repurchase has a slight positive impact to the Company's additional
paid-in capital, as the carrying value of the warrant was higher than its
repurchase price. In addition, the repurchase of the warrant 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"
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.
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.
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.
SOURCE Community Bankers Trust Corporation
Contact: John M. Oakey, III, Community Bankers Trust Corporation, 804-934-9999
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