Community Bankers Trust Corporation and Essex Bank Announce
Termination of Written Agreement with Banking Regulators
GLEN ALLEN, Va., Dec. 11, 2012 /PRNewswire/ -- Community Bankers
Trust Corporation, the holding company for Essex Bank (NYSE MKT:
BTC), announced today that the Federal Reserve Bank of Richmond and the Bureau of Financial
Institutions of the Virginia State Corporation Commission have
terminated their written agreement with the Company and the
Bank. The parties had entered into the written agreement on
April 21, 2011.
Rex L. Smith, III, President and
Chief Executive Officer of the Company and the Bank, stated, "I am
very pleased and excited by our complete release from this
enforcement action. Our talented and dedicated employees have
worked diligently in conjunction with our primary regulators to
remove old obstacles and to clean up the balance sheet in order to
ensure a solid foundation for a successful banking franchise in the
Mid-Atlantic markets."
Mr. Smith added, "When I became interim Chief Executive Officer
two years ago, we reported a net loss of $24.5 million through the third quarter of 2010,
and we had over $43 million of
non-performing loans. We had a material weakness in our financial
reporting, and we had ineffective planning with no resolution in
sight. As a result, our stock traded at that time at levels
as low as 70 cents per share.
Since that time, despite a difficult economy, we have been able to
dramatically affect the position of the Company and make it an
attractive investment. The release from the written agreement
is the final chapter to one of the greatest turn-around stories in
community banking today. I am happy for all of us here to
have been able to be a part of it and, as always, we remain
committed to returning long-term value for our stockholders."
The Federal Reserve publicly announced the termination of the
written agreement, which was effective December 5, 2012, in a press release dated
December 11, 2012.
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.
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 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, 2011 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