This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Community Bankers Trust Corporation Announces Partial Repayment Of TARP Preferred Stock

GLEN ALLEN, Va., July 24, 2013 /PRNewswire/ -- Community Bankers Trust Corporation (NASDAQ: ESXB), the holding company for Essex Bank, announced today that it has repaid $4,500,000 of its TARP preferred stock investment from the United States Department of the Treasury.  To effect this repayment, on July 24, 2013, the Company repurchased 4,500 shares of the original 17,680 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, that the Company issued to the Treasury in connection with the Company's participation in the Treasury's TARP Capital Purchase Program in December 2008. The Company funded the repurchase through the earnings of its banking subsidiary.

The form of the repurchase was a redemption under the terms of the TARP preferred stock.  The Company paid the Treasury $4,543,125, which represented 100% of the par value of the preferred stock repurchased plus accrued dividends with respect to such shares.  The repurchase will result in a reduction of $56,250 in the Company's quarterly dividend payments to the Treasury. 

Rex L. Smith, the Company's President and Chief Executive Officer, stated, "The strategic steps that we have taken over the past three years have vastly improved our financial condition and earnings, and this TARP repayment is a key milestone for the Company.  We have made it clear all along that we are not interested in repaying our TARP funds at the expense of diluting our stockholders.  We are pleased to be a company that is able to repay these funds through earnings, and that is a key indicator of our current operating performance and capital position and our long-term strategies and prospects."

Mr. Smith added, "Our current plan to repay the TARP funds is through minimum quarterly payments of $2,250,000.  The $4,500,000 payment that we made today reflects the part of this plan for the second and third quarters of 2013.  We have worked closely with our regulators to begin these payments as we had planned, and we will continue to work with them in future quarters.  Future payments, of course, will depend on regulatory approval of repurchases, as well as continuing an adequate level of our earnings to support the payments and satisfactory financial condition."

Following the redemption, the Treasury owns 13,180 shares of the Company's TARP preferred stock, which represents an investment of $13,180,000.  Under the terms of the preferred stock, the Company is required to pay dividends on a quarterly basis at a rate of 5% per year on such amount through the February 2014 payment.  After the February 2014 payment, the dividend rate automatically increases to 9% per year.  The Company may defer dividend payments, but the dividend is a cumulative dividend that accrues for payment in the future.  The amount of the Company's next dividend payment, scheduled for August 15, 2013, on the new amount of outstanding shares of preferred stock is $164,750.  The Treasury continues to hold a warrant to purchase 780,000 shares of the Company's common stock at an exercise price of $3.40, which it also acquired in December 2008.

About Community Bankers Trust Corporation

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs