Community Bankers Trust Corporation Reports Receipt Of Notice Of Noncompliance With NYSE Amex Standards And Selected Results For 2009
Community Bankers Trust Corporation, the holding company for Essex Bank (the “Company”) (NYSE Amex: BTC), announced today that it has received notice from the NYSE Amex that it is not in compliance with the exchange’s continued listing standard with respect to the timely filing of its periodic reports with the Securities and Exchange Commission. Specifically, the Company is not in compliance with Sections 134 and 1101 of the NYSE Amex LLC Company Guide and its listing agreement because it failed to timely file its Annual Report on Form 10-K for the year ended December 31, 2009.
As it has previously disclosed, the Company has been revising disclosure items in its 2008 Form 10-K and the three Quarterly Reports on Form 10-Q that it filed in 2009 to include historical financial and related information with respect to each of the Company’s predecessors and enhanced disclosures relating to goodwill and intangible assets, fair value measurements, FDIC-covered assets and asset quality. The amended Form 10-Q filings will also include an expanded presentation of financial information relating to the Company’s acquisition of the operations of Suburban Federal Savings Bank in January 2009, due primarily to the post-transaction application of accounting rules with respect to the fair value of loans covered by FDIC shared-loss agreements and the FDIC indemnification asset. None of these changes required the Company to restate any of the financial information previously provided in the identified filings. The Company believes that it has addressed these matters and has provided the staff of the Securities and Exchange Commission with the proposed additional and enhanced disclosures for its amended filings. The Company understands that the staff will review these proposed disclosures when it reviews the Company’s 2009 Form 10-K.
The Company’s 2009 Form 10-K will also reflect the additional and enhanced disclosures described above. The primary item that is affecting the Company’s ability to complete and file the 2009 Form 10-K at this time is the accounting treatment and regulatory, legal and related issues with respect to significant transaction-based bonus awards that the Company approved in 2010 for its chief strategic officer, as provided in his employment agreement, in connection with his services in the Company’s acquisitions of the operations of The Community Bank in 2008 and Suburban Federal Savings Bank in January 2009. The Company currently intends to record the transaction-based bonus awards as 2009 expenses under generally accepted accounting principles, but the Company is also actively discussing with its regulators the regulatory, legal and related concerns with respect to the payment of these bonus awards. The Company is working diligently to resolve these concerns and properly address the transaction-based bonus awards in the 2009 Form 10-K. The Company cannot make any assurances at this time as to the amount of these awards, if any, that will ultimately be paid following the resolution of these concerns.
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