Community Bankers Trust Corporation Conditionally Approves But Defers Dividend On TARP Preferred Stock
GLEN ALLEN, Va., Aug. 15, 2012 /PRNewswire/ -- Community Bankers Trust Corporation, the holding company for Essex Bank (the "Company") (NYSE Amex: BTC), announced today that its Board of Directors has conditionally approved the August 2012 payment of its regular quarterly cash dividend with respect to its Fixed Rate Cumulative Perpetual Preferred Stock, Series A, which the Company issued 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's payment of the dividend is conditioned upon the approval of the Company's federal and state regulators, as set forth in the formal written agreement that has been in place since April 2011.
Rex L. Smith, III, the Company's President and Chief Executive Officer, stated, "Similar to what we experienced back in February of this year, regulatory approval of the August TARP payment was not able to be timed to the deadline for this payment. We submitted our request for payment in the period required by the written agreement, but we have been advised that our federal regulators have not yet completed the approval process. As we have previously reported, our financial condition and earnings continue to improve each quarter, and they have improved significantly from where we were when we anticipated that we would enter into the written agreement with our regulators."
Mr. Smith added, "In addition, we believe that we have properly addressed the supervisory issues regarding our safety and soundness, and thus we are unaware of an outstanding operational or similar issue that creates an impediment to our making this TARP payment. One of our primary goals continues to be the catch-up of all payments due, and ultimately the pay-off of our entire TARP obligation, as earnings and our capital resources permit."
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