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GLEN ALLEN, Va.,
March 15, 2012 /PRNewswire/ -- Community Bankers Trust Corporation, the holding company for Essex Bank (the "Company") (NYSE Amex: BTC), announced today that it has received regulatory approval for the
February 2012 payment of its regular quarterly cash dividend with respect to its Fixed Rate Cumulative Perpetual Preferred Stock, Series A. The Company issued the Preferred Stock to the United States Department of the Treasury in connection with the Company's participation in the Treasury's TARP Capital Purchase Program in
December 2008. The Company will make the payment, and will pay all outstanding interest on both the February payment and the six dividend payments that the Company had previously deferred, on
March 16, 2012.
The Company also received regulatory approval for the payment of all outstanding interest payments that the Company has deferred under its trust preferred securities since
September 30, 2010. The Company will make this payment also on
March 16, 2012.
The Company's Board of Directors had previously approved all of these payments, subject to the approval of the Company's federal and state regulators as set forth in the formal written agreement that has been in place since
Rex L. Smith, III, the Company's President and Chief Executive Officer, stated, "We are pleased to have the ability to begin making our TARP payments again, and to bring all interest payments on our trust preferred securities current at the same time. It shows the excellent progress that the Company continues to make, as well as the close relationship that we have with our regulators to actively address every supervisory issue regarding our safety and soundness. We believe that this is the first step towards more substantive relief under our written agreement and definitely the path to fulfill our TARP obligations. We will continue our efforts towards reducing non-performing loans and increasing profitability to ensure success. At this point, our trends certainly point in the right direction."
Following the payments described above, the Company will still have six quarterly dividend payments with respect to the Preferred Stock that remain accrued and unpaid. The failure to pay dividends for six dividend periods triggers the right for the holder of the Preferred Stock to appoint two directors to the Company's board. The Treasury has not requested to exercise this right to date.