UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D. C. 20549
 Form 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2009
 or
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from           to
 Commission File Number: 001-32590
 COMMUNITY BANKERS TRUST CORPORATION
  Delaware
    
    20-2652949(State or other jurisdiction of 
incorporation of organization)
    
    (I.R.S. Employer
Identification No.)4235 Innslake Drive, Suite 200Glen Allen, Virginia
    
    23060(Address of principal executive offices)
    
    (Zip Code)
 (804) 934-9999  (Registrants telephone number, including area code)
 not applicable  (Former name, former address and former fiscal year, if changed since last report)
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ




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##### 



COMMUNITY BANKERS TRUST CORPORATION
 
 PagePART I  FINANCIAL INFORMATIONItem 1. Financial Statements
    
    
    3Consolidated Statements of Financial Condition (Unaudited)
    
    
    3Consolidated Statements of Operations (Unaudited)
    
    
    4Consolidated Statements of Cash Flows (Unaudited)
    
    
    5Notes to Unaudited Consolidated Financial Statements
    
    
    6Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    21Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    34Item 4. Controls and Procedures
    
    
    35PART II  OTHER INFORMATIONItem 1. Legal Proceedings
    
    
    39Item 1A. Risk Factors
    
    
    39Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    39Item 3. Defaults upon Senior Securities
    
    
    39Item 4. Submission of Matters to a Vote of Security Holders
    
    
    39Item 5. Other Information
    
    
    39Item 6. Exhibits
    
    
    39SIGNATURES
    
    
    40
 2




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##### 



PART I  FINANCIAL INFORMATION
 
 Item 1.
    
    Financial Statements
 COMMUNITY BANKERS TRUST CORPORATION
 
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 AT SEPTEMBER 30, 2009 AND DECEMBER 31, 2008
 (dollars in thousands)
 September 30, 2009
    
    December 31, 2008(Unaudited)
    
    (Audited)(Restated)AssetsCash and due from banks
    
    $
    13,464
    
    
    $
    10,864Interest bearing bank deposits
    
    
    10,534
    
    
    
    107,376Federal funds sold
    
    
    5,300
    
    
    
    10,193Total cash and cash equivalents
    
    
    29,298
    
    
    
    128,433Securities available for sale, at fair value
    
    
    171,184
    
    
    
    193,992Securities held to maturity, fair value of $124,865 and $94,965, respectively
    
    
    121,023
    
    
    
    94,865Equity securities, restricted, at cost
    
    
    8,355
    
    
    
    3,612Total securities
    
    
    300,562
    
    
    
    292,469Loans held for resale
    
    
    
    
    
    
    200Loans covered by FDIC shared-loss agreement (Note 8)
    
    
    245,077
    
    
    
    Total loans excluding covered loans
    
    
    569,452
    
    
    
    523,298Allowance for loan losses
    
    
    (16,211
    )
    
    
    (6,939
    )Net loans
    
    
    798,318
    
    
    
    516,359Bank premises and equipment
    
    
    37,328
    
    
    
    24,111Bank owned life insurance
    
    
    6,475
    
    
    
    6,300Core deposit intangibles, net
    
    
    17,645
    
    
    
    17,163Goodwill (Note 5)
    
    
    13,152
    
    
    
    37,184Other real estate owned
    
    
    1,175
    
    
    
    223Other real estate owned , covered by FDIC shared-loss agreement(Note 8)
    
    
    16,823
    
    
    
    FDIC receivable for expenses incurred (Note 8)
    
    
    3,560
    
    
    
    Other assets
    
    
    14,802
    
    
    
    7,325Total assets
    
    $
    1,239,138
    
    
    $
    1,029,767LiabilitiesDeposits:Noninterest bearing
    
    $
    64,338
    
    
    $
    59,699Interest bearing
    
    
    963,191
    
    
    
    746,649Total deposits
    
    
    1,027,529
    
    
    
    806,348Federal funds purchased
    
    
    31
    
    
    
    Federal Home Loan Bank advances
    
    
    37,000
    
    
    
    37,900Trust preferred capital notes
    
    
    4,124
    
    
    
    4,124Other liabilities
    
    
    23,854
    
    
    
    16,992Total liabilities
    
    $
    1,092,538
    
    
    $
    865,364Stockholders EquityPreferred stock (5,000,000 shares authorized, $0.01 par value) 17,680 shares
issued and outstanding
    
    
    17,680
    
    
    
    17,680Discount on preferred stock
    
    
    (896
    )
    
    
    (1,031
    )Warrants on preferred stock
    
    
    1,037
    
    
    
    1,037Common stock (50,000,000 shares authorized, $0.01 par value) 21,468,455
shares issued and outstanding
    
    
    215
    
    
    
    215Retired warrants on common stock
    
    
    (2,111
    )
    
    
    Additional paid in capital
    
    
    146,110
    
    
    
    146,076Retained (deficit) earnings
    
    
    (17,552
    )
    
    
    1,691Accumulated other comprehensive income (loss)
    
    
    2,117
    
    
    
    (1,265
    )Total stockholders equity
    
    $
    146,600
    
    
    $
    164,403Total liabilities and stockholders equity
    
    $
    1,239,138
    
    
    $
    1,029,767
 See accompanying notes to unaudited consolidated financial statements
 3




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##### 



COMMUNITY BANKERS TRUST CORPORATION
 
 CONSOLIDATED STATEMENTS OF OPERATIONS
 FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
 (dollars and shares in thousands, except per share data)
 (unaudited)
 BOE Predecessor
    
    
    TFC PredecessorFor the three months ended
    
    
    For the nine months ended
    
    
    
    For the five months ended
    
    
    For the five months endedSeptember 30, 2009
    
    
    September 30, 2008
    
    
    September 30, 2009
    
    
    September 30, 2008
    
    
    
    May 31, 2008
    
    
    May 31, 2008(Note 1)
    
    
    (Note 1)Interest and dividend incomeInterest and fees on loans
    
    $
    8,820
    
    
    $
    8,497
    
    
    $
    26,236
    
    
    $
    11,201
    
    
    
    $
    6,737
    
    
    $
    6,849Interest and fees on FDIC covered loans
    
    
    3,741
    
    
    
    
    
    
    
    10,658
    
    
    
    
    
    
    
    
    
    
    
    
    Interest on federal funds sold
    
    
    10
    
    
    
    22
    
    
    
    36
    
    
    
    68
    
    
    
    
    18
    
    
    
    26Interest on deposits in other banks
    
    
    60
    
    
    
    83
    
    
    
    262
    
    
    
    83
    
    
    
    
    3
    
    
    
    Interest and dividends on securitiesTaxable
    
    
    2,081
    
    
    
    539
    
    
    
    7,580
    
    
    
    1,226
    
    
    
    
    465
    
    
    
    236Nontaxable
    
    
    896
    
    
    
    333
    
    
    
    2,473
    
    
    
    443
    
    
    
    
    555
    
    
    
    Total interest income
    
    
    15,608
    
    
    
    9,474
    
    
    
    47,245
    
    
    
    13,021
    
    
    
    
    7,778
    
    
    
    7,111Interest expenseInterest on deposits
    
    
    6,026
    
    
    
    2,908
    
    
    
    18,443
    
    
    
    3,935
    
    
    
    
    3,265
    
    
    
    3,295Interest on federal funds purchased
    
    
    2
    
    
    
    101
    
    
    
    6
    
    
    
    114
    
    
    
    
    21
    
    
    
    23Interest on other borrowed funds
    
    
    338
    
    
    
    277
    
    
    
    1,071
    
    
    
    357
    
    
    
    
    458
    
    
    
    Total interest expense
    
    
    6,366
    
    
    
    3,286
    
    
    
    19,520
    
    
    
    4,406
    
    
    
    
    3,744
    
    
    
    3,318Net interest income
    
    
    9,242
    
    
    
    6,188
    
    
    
    27,725
    
    
    
    8,615
    
    
    
    
    4,033
    
    
    
    3,793Provision for loan losses
    
    
    5,231
    
    
    
    1,100
    
    
    
    11,271
    
    
    
    1,334
    
    
    
    
    200
    
    
    
    1,348Net interest income after provision for loan losses
    
    
    4,011
    
    
    
    5,088
    
    
    
    16,454
    
    
    
    7,281
    
    
    
    
    3,833
    
    
    
    2,445Noninterest incomeService charges on deposit accounts
    
    
    674
    
    
    
    516
    
    
    
    1,863
    
    
    
    696
    
    
    
    
    464
    
    
    
    278Gain on SFSB transaction
    
    
    
    
    
    
    
    
    
    
    21,260
    
    
    
    
    
    
    
    
    
    
    
    
    Gain on securities transactions, net
    
    
    612
    
    
    
    
    
    
    
    905
    
    
    
    
    
    
    
    
    6
    
    
    
    Loss on sale of other real estate
    
    
    (187
    )
    
    
    
    
    
    
    (166
    )
    
    
    
    
    
    
    
    (92
    )
    
    
    Other
    
    
    175
    
    
    
    238
    
    
    
    844
    
    
    
    357
    
    
    
    
    480
    
    
    
    142Total noninterest income
    
    
    1,274
    
    
    
    754
    
    
    
    24,706
    
    
    
    1,053
    
    
    
    
    858
    
    
    
    420Noninterest expenseSalaries and employee benefits
    
    
    4,840
    
    
    
    2,375
    
    
    
    14,294
    
    
    
    2,949
    
    
    
    
    2,494
    
    
    
    3,687Occupancy expenses
    
    
    752
    
    
    
    346
    
    
    
    1,886
    
    
    
    458
    
    
    
    
    216
    
    
    
    318Equipment expenses
    
    
    436
    
    
    
    292
    
    
    
    1,198
    
    
    
    400
    
    
    
    
    286
    
    
    
    228Legal fees
    
    
    217
    
    
    
    151
    
    
    
    772
    
    
    
    266
    
    
    
    
    306
    
    
    
    106Professional fees
    
    
    184
    
    
    
    133
    
    
    
    1,340
    
    
    
    133
    
    
    
    
    258
    
    
    
    1,029FDIC assessment
    
    
    436
    
    
    
    60
    
    
    
    1,310
    
    
    
    76
    
    
    
    
    11
    
    
    
    64Data processing fees
    
    
    743
    
    
    
    285
    
    
    
    2,217
    
    
    
    389
    
    
    
    
    394
    
    
    
    1,995Amortization of intangibles
    
    
    565
    
    
    
    406
    
    
    
    1,675
    
    
    
    554
    
    
    
    
    
    
    
    
    Impairment of goodwill
    
    
    
    
    
    
    
    
    
    
    24,032
    
    
    
    
    
    
    
    
    52
    
    
    
    Other operating expenses
    
    
    1,770
    
    
    
    608
    
    
    
    5,407
    
    
    
    1,366
    
    
    
    
    872
    
    
    
    793Total noninterest expense
    
    
    9,943
    
    
    
    4,656
    
    
    
    54,131
    
    
    
    6,591
    
    
    
    
    4,889
    
    
    
    8,220(Loss) income before income taxes
    
    
    (4,658
    )
    
    
    1,186
    
    
    
    (12,971
    )
    
    
    1,743
    
    
    
    
    (198
    )
    
    
    (5,355
    )Income tax (benefit) expense
    
    
    (1,908
    )
    
    
    234
    
    
    
    2,964
    
    
    
    392
    
    
    
    
    151
    
    
    
    (244
    )Net (loss) income
    
    $
    (2,750
    )
    
    $
    952
    
    
    $
    (15,935
    )
    
    $
    1,351
    
    
    
    $
    (349
    )
    
    $
    (5,111
    )Dividends accrued on preferred stock
    
    
    223
    
    
    
    
    
    
    
    661
    
    
    
    
    
    
    
    
    
    
    
    
    Accretion of discount on preferred
stock
    
    
    46
    
    
    
    
    
    
    
    135
    
    
    
    
    
    
    
    
    
    
    
    
    Net (loss) income available to common stockholders
    
    $
    (3,019
    )
    
    $
    952
    
    
    $
    (16,731
    )
    
    $
    1,351
    
    
    
    $
    (349
    )
    
    $
    (5,111
    )Net (loss) income per share  basic
    
    $
    (0.14
    )
    
    $
    0.04
    
    
    $
    (0.78
    )
    
    $
    0.09
    
    
    
    $
    (0.29
    )
    
    $
    (1.11
    )Net (loss) income per share  diluted
    
    $
    (0.14
    )
    
    $
    0.04
    
    
    $
    (0.78
    )
    
    $
    0.08
    
    
    
    $
    (0.29
    )
    
    $
    (1.11
    )Weighted average number of shares outstandingbasic
    
    
    21,468
    
    
    
    21,469
    
    
    
    21,468
    
    
    
    14,750
    
    
    
    
    1,214
    
    
    
    4,596diluted
    
    
    21,468
    
    
    
    21,486
    
    
    
    21,468
    
    
    
    16,197
    
    
    
    
    1,219
    
    
    
    4,596
 See accompanying notes to unaudited consolidated financial statements
 4




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##### 



COMMUNITY BANKERS TRUST CORPORATION
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 (dollars in thousands)
 (unaudited)
 BOE Predecessor
    
    
    TFC PredecessorFor the five months
    
    
    For the fiveFor the nine months ended
    
    
    
    ended
    
    
    months endedSeptember 30, 2009
    
    
    September 30, 2008
    
    
    
    May 31, 2008
    
    
    May 31, 2008(Note 1)
    
    
    (Note 1)Operating activities:Net (loss) income
    
    $
    (15,935
    )
    
    $
    1,351
    
    
    
    $
    (349
    )
    
    $
    (5,111
    )Adjustments to reconcile net loss to net cash provided by (used in) operating activities:Depreciation and intangibles amortization
    
    
    3,130
    
    
    
    750
    
    
    
    
    335
    
    
    
    335Provision for loan losses
    
    
    11,271
    
    
    
    1,334
    
    
    
    
    200
    
    
    
    1,348Amortization of security premiums and accretion of discounts, net
    
    
    1,411
    
    
    
    54
    
    
    
    
    36
    
    
    
    1Change in loans held for sale
    
    
    200
    
    
    
    721
    
    
    
    
    (209
    )
    
    
    Net gain on SFSB transaction
    
    
    (21,260
    )
    
    
    
    
    
    
    
    
    
    
    
    Impairment of goodwill
    
    
    24,032
    
    
    
    
    
    
    
    
    52
    
    
    
    Stock-based compensation expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    179Net gain on sale of securities
    
    
    (905
    )
    
    
    
    
    
    
    
    (6
    )
    
    
    Net loss on sale of OREO
    
    
    166
    
    
    
    
    
    
    
    
    92
    
    
    
    Net loss/(gain) on sale of loans
    
    
    13
    
    
    
    (15
    )
    
    
    
    (90
    )
    
    
    Loss on write down of LLC membership
    
    
    
    
    
    
    
    
    
    
    
    88
    
    
    
    Cash acquired in acquisitions
    
    
    35,662
    
    
    
    10,016
    
    
    
    
    
    
    
    
    Changes in assets and liabilities:(Increase)/decrease in other assets
    
    
    (636
    )
    
    
    (3,108
    )
    
    
    
    93
    
    
    
    (76
    )Increase/(decrease) in accrued expenses and other liabilities
    
    
    439
    
    
    
    (3,190
    )
    
    
    
    828
    
    
    
    2,854Net cash provided by (used in) operating activities
    
    
    37,588
    
    
    
    7,913
    
    
    
    
    1,070
    
    
    
    (470
    )Investing activities:Proceeds from securities
    
    
    145,148
    
    
    
    65,131
    
    
    
    
    2,320
    
    
    
    12,605Purchase of securities
    
    
    (129,390
    )
    
    
    (23,489
    )
    
    
    
    (3,844
    )
    
    
    (7,200
    )Net increase in loans
    
    
    (14,723
    )
    
    
    (28,641
    )
    
    
    
    (11,834
    )
    
    
    (37,357
    )Purchase of premises and equipment, net
    
    
    (9,421
    )
    
    
    (989
    )
    
    
    
    (459
    )
    
    
    (259
    )Net cash (used in) provided by investing activities
    
    
    (8,386
    )
    
    
    12,012
    
    
    
    
    (13,817
    )
    
    
    (32,211
    )Financing activities:Net increase/(decrease) in noninterest bearing and interest bearing deposits
    
    
    (85,816
    )
    
    
    (5,693
    )
    
    
    
    11,789
    
    
    
    28,536Net increase/(decrease) in federal funds purchased
    
    
    31
    
    
    
    (1,095
    )
    
    
    
    1,965
    
    
    
    5,218Issuance of common stock
    
    
    
    
    
    
    
    
    
    
    
    44
    
    
    
    Cash paid to shareholders for converted shares
    
    
    
    
    
    
    (10,843
    )
    
    
    
    
    
    
    
    Cash paid to reduce FHLB borrowings
    
    
    (37,900
    )
    
    
    20,000
    
    
    
    
    900
    
    
    
    Cash paid to redeem shares related to asserted appraisal rights and retire warrants
    
    
    (2,077
    )
    
    
    (11
    )
    
    
    
    
    
    
    
    Cash dividends paid
    
    
    (2,575
    )
    
    
    (861
    )
    
    
    
    (267
    )
    
    
    (1,152
    )Net cash (used in) provided by financing activities
    
    
    (128,337
    )
    
    
    1,497
    
    
    
    
    14,431
    
    
    
    32,602Net (decrease) increase in cash and cash equivalents
    
    
    (99,135
    )
    
    
    21,422
    
    
    
    
    1,684
    
    
    
    (79
    )Cash and cash equivalents:Beginning of the period
    
    
    128,433
    
    
    
    162
    
    
    
    
    4,100
    
    
    
    4,311End of the period
    
    $
    29,298
    
    
    $
    21,584
    
    
    
    $
    5,784
    
    
    $
    4,232Supplemental disclosures of cash flow information:Interest paid
    
    $
    20,686
    
    
    $
    4,689
    
    
    
    $
    3,902
    
    
    $
    3,195Income taxes paid
    
    
    296
    
    
    
    
    
    
    
    
    293
    
    
    
    Transfers of OREO property
    
    
    952
    
    
    
    224Transactions related to acquisitionIncrease in assets and liabilities:Loans, net
    
    
    278,507
    
    
    
    471,864Other real estate owned
    
    
    17,820
    
    
    
    Securities
    
    
    7,416
    
    
    
    71,123Fixed assets, net
    
    
    37
    
    
    
    Other assets
    
    
    10,899
    
    
    
    83,769Deposits
    
    
    306,997
    
    
    
    491,462Borrowings
    
    
    37,525
    
    
    
    32,359Other liabilities
    
    
    1,756
    
    
    
    8,861
 See accompanying notes to unaudited consolidated financial statements
 5




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##### 



COMMUNITY BANKERS TRUST CORPORATION
 
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 1. ORGANIZATION
 General
      Predecessors
   6




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##### 



2. ACCOUNTING POLICIES
    3. RECENT ACCOUNTING PRONOUNCEMENTS
  Fair Value Measurements ASC 820 Fair Value Measurements
and Disclosures
 Business Combinations ASC 805 Business Combinations
 Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That
Arise from Contingencies ASC 805 Business Combinations
 7




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##### 



Determining Fair Value When the Volume and
Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying
Transactions That Are Not Orderly ASC 820 Fair Value Measurements and Disclosures
 Interim Disclosures about Fair
Value of Financial Instruments ASC 825 Financial Instruments and ASC 270 Interim Reporting Interim Financial Reporting,
 Recognition and Presentation of
Other-Than-Temporary Impairments ASC 320 Investments  Debt and Equity Securities
 Other Than
Temporary Impairment of Certain Investments in Debt and Equity Securities.
 Subsequent
Events ASC 855 Subsequent Events
 Accounting
for Transfers of Financial Assets  an amendment of FASB Statement No. 140 ASC 860 Transfers and
Servicing
 Amendments
to FASB Interpretation No. 46(R) ASC 810 Consolidation
 The FASB
Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles 
replacement of FASB Statement No. 162 ASC 105 Generally Accepted Accounting Principles
 8




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##### 



Accounting for Own-Share Lending
Arrangements in Contemplation of Convertible Debt Issuance or Other Financing ASC 470 Debt
  Fair
Value Measurements and Disclosures (Topic 820)  Measuring Liabilities at Fair Value. Fair Value Measurements and Disclosures  Overall,
 Fair Value Measurements and Disclosures (Topic 820): Investments in Certain Entities That
Calculate Net Asset Value per Share (or Its Equivalent).
 Accounting
for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance or Other
Financing.
 4. MERGERS AND ACQUISITIONS
 Business Combinations
   Acquisition of Georgia Operations
  9




---



##### 



Acquisition of Maryland Operations
     5. GOODWILL AND INTANGIBLE ASSETS
 Goodwill and Other Intangible Assets
  10




---



##### 



Gross
    
    Accumulated
    
    
    
    
    
    Net CarryingValue
    
    Amortization
    
    Impairment
    
    Value(dollars in thousands)December 31, 2008Goodwill (restated)
    
    $
    37,184
    
    
    
    
    
    
    
    
    
    
    $
    37,184Core deposit intangibles
    
    $
    18,132
    
    
    $
    969
    
    
    
    
    
    
    $
    17,163September 30, 2009Goodwill
    
    $
    37,184
    
    
    
    
    
    
    $
    24,032
    
    
    $
    13,152Core deposit intangibles
    
    $
    20,290
    
    
    $
    2,645
    
    
    
    
    
    
    $
    17,645
 6. FAIR VALUE MEASUREMENTS
  Fair Value Hierarchy
 Fair Value Measurements and Disclosures
  11




---



##### 



Investment Securities Available-for-Sale
   Loans held for sale
  Loans
  12




---



##### 



Other real estate owned
  Goodwill
  Assets and Liabilities Recorded at Fair Value on a Recurring Basis
  September 30, 2009Total
    
    
    Level 1
    
    
    Level 2
    
    
    Level 3(dollars in thousands)Investment securities
available-for-sale:U.S. Treasury issue and US.
government agencies
    
    $
    16,103
    
    
    $
    
    
    
    $
    16,103
    
    
    $
    State, county, and municipal
    
    $
    94,034
    
    
    $
    
    
    
    $
    94,034
    
    
    $
    Corporates and other bonds
    
    $
    2,834
    
    
    $
    
    
    
    $
    2,834
    
    
    $
    Mortgage backed securities
    
    $
    56,857
    
    
    $
    
    
    
    $
    56,857
    
    
    $
    Financial stocks
    
    $
    1,356
    
    
    $
    1,356
    
    
    $
    
    
    
    $
    Total securities available-for-sale
    
    $
    171,184
    
    
    $
    1,356
    
    
    $
    169,828
    
    
    $
    Loans held for sale
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Total assets at fair value
    
    $
    171,184
    
    
    $
    1,356
    
    
    $
    169,828
    
    
    $
    Total liabilities at fair value
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
  Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
  September 30, 2009Total
    
    
    Level 1
    
    
    Level 2
    
    
    Level 3(dollars in thousands)Loans  impaired loans
    
    $
    123,460
    
    
    $
    
    
    
    $
    114,685
    
    
    $
    8,775Other real estate owned (OREO)
    
    $
    1,175
    
    
    $
    
    
    
    $
    1,175
    
    
    $
    Goodwill
    
    $
    13,152
    
    
    $
    
    
    
    $
    
    
    
    $
    13,152Total assets at fair value
    
    $
    137,787
    
    
    $
    
    
    
    $
    115,860
    
    
    $
    21,927Total liabilities at fair value
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
  Fair Value Measurements and Disclosures,
 13




---



##### 



September 30, 2009Carrying
    
    Fair(dollars in thousands)
    
    Value
    
    ValueFinancial assets:Cash and cash equivalents
    
    $
    29,298
    
    
    $
    29,315Securities available for sale
    
    
    171,184
    
    
    
    171,184Securities held to maturity
    
    
    121,023
    
    
    
    124,883Equity securities
    
    
    8,355
    
    
    
    8,355Loans held for sale
    
    
    
    
    
    
    Net loans excluding covered loans
    
    
    553,241
    
    
    
    546,242FDIC loss share covered assets
    
    
    265,460
    
    
    
    265,460Accrued interest receivable
    
    
    5,401
    
    
    
    5,401Goodwill
    
    
    13,152
    
    
    
    13,152Financial liabilities:Deposits
    
    
    1,027,529
    
    
    
    1,033,024Borrowings
    
    
    41,155
    
    
    
    46,035
 7. SECURITIES
  Amortized
    
    
    Gross Unrealized(dollars in thousands)
    
    Cost
    
    
    Gains
    
    
    Losses
    
    
    Fair ValueU.S. Treasury issue and other
U.S. Government agencies
    
    $
    15,589
    
    
    $
    514
    
    
    $
    
    
    
    $
    16,103State, county and municipal
    
    
    90,976
    
    
    
    3,275
    
    
    
    (217
    )
    
    
    94,034Corporates and other bonds
    
    
    2,761
    
    
    
    73
    
    
    
    
    
    
    
    2,834Mortgage backed securities
    
    
    55,392
    
    
    
    1,469
    
    
    
    (4
    )
    
    
    56,857Other securities
    
    
    1,293
    
    
    
    165
    
    
    
    (102
    )
    
    
    1,356Total securities available for sale
    
    $
    166,011
    
    
    $
    5,496
    
    
    $
    (323
    )
    
    $
    171,184
  Less than 12 months
    
    
    12 months or more
    
    
    TotalUnrealized
    
    
    
    
    
    
    Unrealized
    
    
    
    
    
    
    Unrealized(dollars in thousands)
    
    Fair Value
    
    
    Loss
    
    
    Fair Value
    
    
    Loss
    
    
    Fair Value
    
    
    LossState, county and municipal
    
    $
    2,075
    
    
    $
    (193
    )
    
    $
    2,204
    
    
    $
    (24
    )
    
    $
    4,279
    
    
    $
    (217
    )Mortgage backed securities
    
    
    710
    
    
    
    (4
    )
    
    
    
    
    
    
    
    
    
    
    710
    
    
    
    (4
    )Other securities
    
    
    1,092
    
    
    
    (96
    )
    
    
    12
    
    
    
    (6
    )
    
    
    1,104
    
    
    
    (102
    )Total securities
available for sale
    
    $
    3,877
    
    
    $
    (293
    )
    
    $
    2,216
    
    
    $
    (30
    )
    
    $
    6,093
    
    
    $
    (323
    )
   14




---



##### 



Amortized
    
    
    Gross Unrealized(dollars in thousands)
    
    Cost
    
    
    Gains
    
    
    Losses
    
    
    Fair ValueU.S. Treasury issue and other
U.S. Government agencies
    
    $
    748
    
    
    $
    
    
    
    $
    (1
    )
    
    $
    747State, county and municipal
    
    
    13,104
    
    
    
    859
    
    
    
    
    
    
    
    13,963Corporates and other bonds
    
    
    1,030
    
    
    
    26
    
    
    
    
    
    
    
    1,056Mortgage backed securities
    
    
    106,141
    
    
    
    3,078
    
    
    
    (102
    )
    
    
    109,117Total securities held to maturity
    
    $
    121,023
    
    
    $
    3,963
    
    
    $
    (103
    )
    
    $
    124,883
  Less than 12 months
    
    
    12 months or more
    
    
    TotalUnrealized
    
    
    
    
    
    
    Unrealized
    
    
    
    
    
    
    Unrealized(dollars in thousands)
    
    Fair Value
    
    
    Loss
    
    
    Fair Value
    
    
    Loss
    
    
    Fair Value
    
    
    LossU.S. Treasury issue and other
U.S. Government agencies
    
    $
    748
    
    
    $
    (1
    )
    
    $
    
    
    
    $
    
    
    
    $
    748
    
    
    $
    (1
    )Mortgage backed securities
    
    
    10,501
    
    
    
    (102
    )
    
    
    
    
    
    
    
    
    
    
    10,501
    
    
    
    (102
    )Total securities held to maturity
    
    $
    11,249
    
    
    $
    (103
    )
    
    $
    
    
    
    $
    
    
    
    $
    11,249
    
    
    $
    (103
    )
   8. FDIC RELATED ASSETS
  Accounting for Certain Loans or Debt
Securities Acquired in a Transfer
 15




---



##### 



Non SOP 03-3SOP 03-3 Loans
    
    Loans
    
    Other
    
    TotalCommercial related loans
    
    $
    12,716
    
    
    $
    10,496
    
    
    
    
    
    
    $
    23,212Mortgage and other loans
    
    
    10,421
    
    
    
    129,559
    
    
    
    
    
    
    
    139,980Foreclosed real estate
    
    
    
    
    
    
    
    
    
    $
    16,823
    
    
    
    16,823FDIC receivable for covered assets
    
    
    
    
    
    
    
    
    
    
    81,885
    
    
    
    81,885Estimated loss reimbursement from
FDIC for expenses incurred
    
    
    
    
    
    
    
    
    
    
    3,560
    
    
    
    3,560Total FDIC covered assets
    
    $
    23,137
    
    
    $
    140,055
    
    
    $
    102,268
    
    
    $
    265,460
   9. LOANS
  16




---



##### 



September 30, 2009
    
    
    December 31, 2008Non-covered loans
    
    
    Covered Loans
    
    
    Total Loans
    
    
    Total LoansOpen End 1-4 Family Loans
    
    $
    20,075
    
    
    
    3.52
    %
    
    $
    26,359
    
    
    
    9.92
    %
    
    $
    46,434
    
    
    
    5.56
    %
    
    $
    30,323
    
    
    
    5.80
    %1-4 Family First Liens
    
    
    108,380
    
    
    
    19.03
    %
    
    
    166,080
    
    
    
    62.53
    %
    
    
    274,460
    
    
    
    32.86
    %
    
    
    99,284
    
    
    
    18.98
    %Total residential 1-4 family
    
    
    128,455
    
    
    
    22.55
    %
    
    
    192,439
    
    
    
    72.45
    %
    
    
    320,894
    
    
    
    38.42
    %
    
    
    129,607
    
    
    
    24.78
    %Owner occupied nonfarm nonresidential
    
    
    43,423
    
    
    
    7.62
    %
    
    
    38,387
    
    
    
    14.45
    %
    
    
    81,810
    
    
    
    9.80
    %
    
    
    63,218
    
    
    
    12.09
    %Non owner occupied nonfarm nonresidential
    
    
    111,768
    
    
    
    19.62
    %
    
    
    4,261
    
    
    
    1.60
    %
    
    
    116,029
    
    
    
    13.89
    %
    
    
    93,872
    
    
    
    17.95
    %Total commercial
    
    
    155,191
    
    
    
    27.24
    %
    
    
    42,648
    
    
    
    16.05
    %
    
    
    197,839
    
    
    
    23.69
    %
    
    
    157,090
    
    
    
    30.04
    %1-4 Family Construction
    
    
    50,842
    
    
    
    8.93
    %
    
    
    
    
    
    
    0.00
    %
    
    
    50,842
    
    
    
    6.09
    %
    
    
    36,277
    
    
    
    6.93
    %Other construction and land development
    
    
    131,902
    
    
    
    23.16
    %
    
    
    13,115
    
    
    
    4.94
    %
    
    
    145,017
    
    
    
    17.36
    %
    
    
    103,238
    
    
    
    19.74
    %Total construction
    
    
    182,744
    
    
    
    32.09
    %
    
    
    13,115
    
    
    
    4.94
    %
    
    
    195,859
    
    
    
    23.45
    %
    
    
    139,515
    
    
    
    26.67
    %Second mortgages
    
    
    14,051
    
    
    
    2.47
    %
    
    
    16,779
    
    
    
    6.32
    %
    
    
    30,830
    
    
    
    3.69
    %
    
    
    15,599
    
    
    
    2.98
    %Multifamily
    
    
    10,757
    
    
    
    1.89
    %
    
    
    
    
    
    
    0.00
    %
    
    
    10,757
    
    
    
    1.29
    %
    
    
    9,370
    
    
    
    1.79
    %Agriculture
    
    
    3,907
    
    
    
    0.69
    %
    
    
    180
    
    
    
    0.07
    %
    
    
    4,087
    
    
    
    0.49
    %
    
    
    5,143
    
    
    
    0.98
    %Total real estate loans
    
    
    495,105
    
    
    
    86.93
    %
    
    
    265,161
    
    
    
    99.83
    %
    
    
    760,266
    
    
    
    91.03
    %
    
    
    456,324
    
    
    
    87.24
    %Agriculture loans
    
    
    1,407
    
    
    
    0.25
    %
    
    
    
    
    
    
    0.00
    %
    
    
    1,407
    
    
    
    0.17
    %
    
    
    988
    
    
    
    0.19
    %Commercial and industrial loans
    
    
    45,348
    
    
    
    7.96
    %
    
    
    
    
    
    
    0.00
    %
    
    
    45,348
    
    
    
    5.43
    %
    
    
    44,332
    
    
    
    8.47
    %Total commercial loans
    
    
    46,755
    
    
    
    8.21
    %
    
    
    
    
    
    
    0.00
    %
    
    
    46,755
    
    
    
    5.60
    %
    
    
    45,320
    
    
    
    8.66
    %Total revolving credit and other
consumer
    
    
    15,977
    
    
    
    2.81
    %
    
    
    364
    
    
    
    0.14
    %
    
    
    16,341
    
    
    
    1.96
    %
    
    
    14,457
    
    
    
    2.76
    %All other loans
    
    
    11,700
    
    
    
    2.05
    %
    
    
    95
    
    
    
    0.03
    %
    
    
    11,795
    
    
    
    1.41
    %
    
    
    7,005
    
    
    
    1.34
    %Gross loans
    
    
    569,537
    
    
    
    100.00
    %
    
    
    265,620
    
    
    
    100.00
    %
    
    
    835,157
    
    
    
    100.00
    %
    
    
    523,106
    
    
    
    100.00
    %Unearned income on loans
    
    
    (745
    )
    
    
    
    
    
    
    (72
    )
    
    
    
    
    
    
    (817
    )
    
    
    
    
    
    
    (780
    )Merger related fair value adjustment
    
    
    660
    
    
    
    
    
    
    
    (20,471
    )
    
    
    
    
    
    
    (19,811
    )
    
    
    
    
    
    
    972Total non-covered loans
    
    $
    569,452
    
    
    
    
    
    
    $
    245,077
    
    
    
    
    
    
    $
    814,529
    
    
    
    
    
    
    $
    523,298
  AmountImpaired loans without a valuation allowance
    
    $
    96,684Impaired loans with a valuation allowance
    
    
    26,776Total impaired loans
    
    $
    123,460Valuation allowance related to impaired loans
    
    $
    9,454Total nonaccrual loans
    
    $
    20,572Total loans 90 days or more past due and still accruing
    
    $
    1,462Average investment in impaired loans during the nine months ending September 30, 2009
    
    $
    100,984Interest income recognized on impaired loans
    
    $
    919Interest income recognized on a cash basis on impaired loans
    
    $
    919
 10. ALLOWANCE FOR LOAN LOSSES
  17




---



##### 



Three Months Ended
    
    
    Nine Months Ended
    
    
    Nine Months Ended(dollars in thousands)
    
    September 30, 2009
    
    
    September 30, 2009
    
    
    September 30, 2008Beginning balance
    
    $
    12,185
    
    
    $
    6,939
    
    
    $
    4,993Provision for loan losses
    
    
    5,231
    
    
    
    11,271
    
    
    
    1,334Recoveries of loans
charged off
    
    
    224
    
    
    
    306
    
    
    
    36Loans charged off
    
    
    (1,429
    )
    
    
    (2,305
    )
    
    
    (128
    )Balance at end of period
    
    $
    16,211
    
    
    $
    16,211
    
    
    $
    6,235
     18




---



##### 



Three Months Ended September 30, 2009
    
    
    Nine Months Ended September 30, 2009Net
    
    
    
    
    
    
    
    
    
    
    Net(dollars in thousands)
    
    Charge-offs
    
    
    Recoveries
    
    
    Charge-offs
    
    
    Charge-offs
    
    
    Recoveries
    
    
    Charge-offsOpen End 1-4 Family Loans
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    168
    
    
    $
    
    
    
    $
    1681-4 Family First Liens
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    108
    
    
    
    
    
    
    
    108Total residential 1-4 family
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    276
    
    
    
    
    
    
    
    276Owner occupied nonfarm nonresidential
    
    
    814
    
    
    
    
    
    
    
    814
    
    
    
    814
    
    
    
    
    
    
    
    814Non owner occupied nonfarm nonresidential
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total commercial
    
    
    814
    
    
    
    
    
    
    
    814
    
    
    
    814
    
    
    
    
    
    
    
    8141-4 Family Construction
    
    
    
    
    
    
    183
    
    
    
    (183
    )
    
    
    61
    
    
    
    199
    
    
    
    (138
    )Other construction and land development
    
    
    583
    
    
    
    
    
    
    
    583
    
    
    
    591
    
    
    
    
    
    
    
    591Total construction
    
    
    583
    
    
    
    183
    
    
    
    400
    
    
    
    652
    
    
    
    199
    
    
    
    453Second mortgages
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    34
    
    
    
    
    
    
    
    34Multifamily
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Agriculture
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13
    
    
    
    
    
    
    
    13Total real estate loans
    
    
    1,397
    
    
    
    183
    
    
    
    1,214
    
    
    
    1,789
    
    
    
    199
    
    
    
    1,590Agriculture loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial and industrial loans
    
    
    
    
    
    
    17
    
    
    
    (17
    )
    
    
    318
    
    
    
    20
    
    
    
    298Total commercial loans
    
    
    
    
    
    
    17
    
    
    
    (17
    )
    
    
    318
    
    
    
    20
    
    
    
    298Total revolving credit and other consumer
    
    
    4
    
    
    
    11
    
    
    
    (7
    )
    
    
    170
    
    
    
    74
    
    
    
    96All other loans
    
    
    28
    
    
    
    13
    
    
    
    15
    
    
    
    28
    
    
    
    13
    
    
    
    15Total non-covered loans
    
    $
    1,429
    
    
    $
    224
    
    
    $
    1,205
    
    
    $
    2,305
    
    
    $
    306
    
    
    $
    1,999
 11. DEPOSITS
  Balance by deposit type
    
    September 30, 2009
    
    December 31, 2008(dollars in thousands)NOW
    
    $
    88,045
    
    
    $
    76,575MMDA
    
    
    110,353
    
    
    
    55,200Savings
    
    
    58,495
    
    
    
    34,688Time deposits less than $100,000
    
    
    450,273
    
    
    
    303,424Time deposits greater than $100,000
    
    
    256,025
    
    
    
    276,762Total interest-bearing deposits
    
    $
    963,191
    
    
    $
    746,649
 19




---



##### 



12. (LOSS) EARNINGS PER SHARE
  Weighted(Loss)/
    
    
    AverageIncome
    
    
    Shares
    
    
    Per Share(dollars and shares in thousands, except per share data)
    
    (Numerator)
    
    
    (Denominator)
    
    
    AmountFor the Three Months ended September 30, 2009Basic EPS
    
    $
    (3,019
    )
    
    
    21,468
    
    
    $
    (0.14
    )Effect of dilutive
stock awards and
options
    
    
    
    
    
    
    
    
    
    
    Diluted EPS
    
    $
    (3,019
    )
    
    
    21,468
    
    
    $
    (0.14
    )For the Three Months ended September 30, 2008Basic EPS
    
    $
    952
    
    
    
    21,469
    
    
    $
    0.04Effect of dilutive
stock awards and
options
    
    
    
    
    
    
    17
    
    
    
    Diluted EPS
    
    $
    952
    
    
    
    21,486
    
    
    $
    0.04For the Nine Months ended September 30, 2009Basic EPS
    
    $
    (16,731
    )
    
    
    21,468
    
    
    $
    (0.78
    )Effect of dilutive
stock awards and
options
    
    
    
    
    
    
    
    
    
    
    Diluted EPS
    
    $
    (16,731
    )
    
    
    21,468
    
    
    $
    (0.78
    )For the Nine Months ended September 30, 2008Basic EPS
    
    $
    1,351
    
    
    
    14,750
    
    
    $
    0.09Effect of dilutive
stock awards and
options
    
    
    
    
    
    
    1,447
    
    
    
    (0.01
    )Diluted EPS
    
    $
    1,351
    
    
    
    16,197
    
    
    $
    0.08
  13.
DEFINED BENEFIT PLAN
  Components of Net Periodic Benefit Cost:
 Nine Months EndedSeptember 30, 2009(In thousands)Service cost
    
    $
    276Interest cost
    
    
    243Expected return on plan assets
    
    
    (159
    )Amortization of prior service cost
    
    
    3Amortization of net obligation at transition
    
    
    (3
    )Amortization of net loss
    
    
    66Net periodic benefit cost
    
    $
    426
 20




---



##### 



14. SUBSEQUENT EVENTS
  
 Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
  Overview
    Caution About Forward-Looking Statements
   
    
    general economic and market conditions, either nationally or locally;
    
    the interest rate environment;
 21




---



##### 




    
    competitive pressures among banks and financial institutions or from companies outside the
banking industry;
    
    real estate values;
    
    the quality or composition of the Companys loan or investment portfolios;
    
    the demand for deposit, loan, and investment products and other financial services;
    
    the demand, development and acceptance of new products and services;
    
    the timing of future reimbursements from the FDIC to the Company under the shared-loss
agreements;
    
    consumer profiles and spending and savings habits;
    
    the securities and credit markets;
    
    the integration of banking and other internal operations, and associated costs
    
    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.
   Critical Accounting Policies
  Allowance for Loan and Lease Losses
  Accounting by Creditors for Impairment of a Loan
 22




---



##### 



Income Taxes
 Accounting for Uncertainty in Income Taxes- an interpretation of FASB
Statement No. 109 Accounting for Income Taxes
 Goodwill and Other Intangible Assets
 Goodwill and Other Intangible Assets
   23




---



##### 



Covered Assets under the FDIC Shared-Loss Agreements
 Accounting for Certain Loans or Debt
Securities Acquired in a Transfer.
    Financial Condition
      24




---



##### 



Results of Operations
 Net Income
   Net Interest Income
      25




---



##### 



COMMUNITY BANKERS TRUST CORPORATION
NET INTEREST MARGIN ANALYSIS
AVERAGE BALANCE SHEETS
 Three months ended September 30,2009
    
    
    2008Average
    
    
    Interest
    
    
    Average
    
    
    Average
    
    
    Interest
    
    
    AverageBalance
    
    
    Income/
    
    
    Rates
    
    
    Balance
    
    
    Income/
    
    
    RatesSheet
    
    
    Expense
    
    
    Earned/Paid
    
    
    Sheet
    
    
    Expense
    
    
    Earned/PaidASSETS:Loans, including fees
    
    $
    559,547
    
    
    $
    8,820
    
    
    
    6.31
    %
    
    $
    496,803
    
    
    $
    8,497
    
    
    
    6.84
    %Loans covered by FDIC loss share
    
    
    251,262
    
    
    
    3,741
    
    
    
    5.96
    %Total loans
    
    
    810,809
    
    
    
    12,561
    
    
    
    6.20
    %
    
    
    496,803
    
    
    
    8,497
    
    
    
    6.84
    %Interest bearing bank balances
    
    
    11,061
    
    
    
    60
    
    
    
    2.17
    %
    
    
    9,384
    
    
    
    83
    
    
    
    3.54
    %Federal funds sold
    
    
    20,905
    
    
    
    10
    
    
    
    0.19
    %
    
    
    5,034
    
    
    
    22
    
    
    
    1.75
    %Investments (taxable)
    
    
    216,277
    
    
    
    2,081
    
    
    
    3.85
    %
    
    
    50,809
    
    
    
    539
    
    
    
    4.24
    %Investments (tax exempt) (1)
    
    
    91,927
    
    
    
    1,358
    
    
    
    5.91
    %
    
    
    35,068
    
    
    
    505
    
    
    
    5.76
    %Total earning assets
    
    
    1,150,979
    
    
    
    16,070
    
    
    
    5.58
    %
    
    
    597,098
    
    
    
    9,646
    
    
    
    6.46
    %Allowance for loan losses
    
    
    (13,290
    )
    
    
    
    
    
    
    
    
    
    
    (5,380
    )Non-earning assets
    
    
    122,823
    
    
    
    
    
    
    
    
    
    
    
    90,098Total assets
    
    $
    1,260,512
    
    
    
    
    
    
    
    
    
    
    $
    681,816LIABILITIES AND STOCKHOLDERS EQUITYDeposits:Demand -
Interest bearing
    
    $
    200,965
    
    
    $
    381
    
    
    
    0.76
    %
    
    $
    84,032
    
    
    $
    328
    
    
    
    1.56
    %Savings
    
    
    58,438
    
    
    
    100
    
    
    
    0.68
    %
    
    
    31,126
    
    
    
    84
    
    
    
    1.08
    %Time deposits
    
    
    724,190
    
    
    
    5,545
    
    
    
    3.06
    %
    
    
    314,585
    
    
    
    2,495
    
    
    
    3.17
    %Total deposits
    
    
    983,593
    
    
    
    6,026
    
    
    
    2.45
    %
    
    
    429,743
    
    
    
    2,907
    
    
    
    2.71
    %Fed funds purchased
    
    
    1,126
    
    
    
    2
    
    
    
    0.71
    %
    
    
    17,408
    
    
    
    101
    
    
    
    2.32
    %FHLB and other borrowings
    
    
    40,005
    
    
    
    338
    
    
    
    3.38
    %
    
    
    28,974
    
    
    
    277
    
    
    
    3.82
    %Total interest-bearing liabilities
    
    
    1,024,724
    
    
    
    6,366
    
    
    
    2.48
    %
    
    
    476,125
    
    
    
    3,285
    
    
    
    2.76
    %Non-interest bearing deposits
    
    
    61,269
    
    
    
    
    
    
    
    
    
    
    
    54,060Other liabilities
    
    
    25,679
    
    
    
    
    
    
    
    
    
    
    
    7,410Total liabilities
    
    
    1,111,672
    
    
    
    
    
    
    
    
    
    
    
    537,595Stockholders equity
    
    
    148,840
    
    
    
    
    
    
    
    
    
    
    
    144,221Total liabilities and
stockholders equity
    
    $
    1,260,512
    
    
    
    
    
    
    
    
    
    
    $
    681,816Net interest earnings
    
    
    
    
    
    $
    9,704
    
    
    
    
    
    
    
    
    
    
    $
    6,361Interest spread
    
    
    
    
    
    
    
    
    
    
    3.10
    %
    
    
    
    
    
    
    
    
    
    
    3.70
    %Net interest margin
    
    
    
    
    
    
    
    
    
    
    3.37
    %
    
    
    
    
    
    
    
    
    
    
    4.26
    %
 
 (1)
    
    Income and yields are reported on a tax equivalent basis assuming a federal tax rate of 34%. 26




---



##### 



COMMUNITY BANKERS TRUST CORPORATION
NET INTEREST MARGIN ANALYSIS
AVERAGE BALANCE SHEETS
 Nine months ended September 30, 2009Average
    
    
    Interest
    
    
    AverageBalance
    
    
    Income/
    
    
    RatesSheet
    
    
    Expense
    
    
    Earned/PaidASSETS:Loans, including fees
    
    $
    547,468
    
    
    $
    26,236
    
    
    
    6.39
    %Loans covered by FDIC loss share
    
    
    237,573
    
    
    
    10,658
    
    
    
    5.98
    %Total loans
    
    
    785,041
    
    
    
    36,894
    
    
    
    6.27
    %Interest bearing bank balances
    
    
    26,894
    
    
    
    262
    
    
    
    1.30
    %Federal funds sold
    
    
    19,808
    
    
    
    36
    
    
    
    0.24
    %Investments (taxable)
    
    
    248,042
    
    
    
    7,580
    
    
    
    4.07
    %Investments (tax exempt) (1)
    
    
    84,281
    
    
    
    3,747
    
    
    
    5.93
    %Total earning assets
    
    
    1,164,066
    
    
    
    48,519
    
    
    
    5.56
    %Allowance for loan losses
    
    
    (10,593
    )Non-earning assets
    
    
    129,324Total assets
    
    $
    1,282,796LIABILITIES AND STOCKHOLDERS EQUITYDeposits:Demand -
Interest bearing
    
    $
    193,705
    
    
    $
    1,556
    
    
    
    1.07
    %Savings
    
    
    54,813
    
    
    
    374
    
    
    
    0.91
    %Time deposits
    
    
    736,112
    
    
    
    16,513
    
    
    
    2.99
    %Total deposits
    
    
    984,630
    
    
    
    18,443
    
    
    
    2.50
    %Fed funds purchased
    
    
    1,085
    
    
    
    6
    
    
    
    0.76
    %FHLB and other borrowings
    
    
    45,201
    
    
    
    1,071
    
    
    
    3.16
    %Total interest-bearing liabilities
    
    
    1,030,916
    
    
    
    19,520
    
    
    
    2.52
    %Non-interest bearing deposits
    
    
    61,423Other liabilities
    
    
    28,772Total liabilities
    
    
    1,121,111Stockholders equity
    
    
    161,685Total liabilities and
stockholders equity
    
    $
    1,282,796Net interest earnings
    
    
    
    
    
    $
    28,999Interest spread
    
    
    
    
    
    
    
    
    
    
    3.04
    %Net interest margin
    
    
    
    
    
    
    
    
    
    
    3.32
    %
 
 (1)
    
    Income and yields are reported on a tax equivalent basis assuming a
federal tax rate of 34%. 27




---



##### 



Provision for Credit Losses
   Asset Quality
 Noninterest Income
   Noninterest Expenses
     28




---



##### 



Income Taxes
  Asset Quality
  Total Loans Excluding Covered Loans
      29




---



##### 



(dollars in thousands)
    
    September 30, 2009
    
    December 31, 2008Nonaccrual loans
    
    $
    20,572
    
    
    $
    4,534Loans past due over 90 days
    
    
    1,462
    
    
    
    397Other real estate owned
    
    
    1,175
    
    
    
    223Total nonperforming assets
    
    $
    23,209
    
    
    $
    5,154BalancesAllowance for loan losses
    
    $
    16,211
    
    
    $
    6,939Average loans during quarter, net of unearned income
    
    $
    559,547
    
    
    $
    511,042Loans, net of unearned income
    
    $
    569,452
    
    
    $
    523,298RatiosAllowance for loan losses to loans
    
    
    2.85
    %
    
    
    1.33
    %Allowance for loan losses to nonperforming assets
    
    
    69.85
    %
    
    
    134.63
    %Nonperforming assets to loans & other real estate
    
    
    4.07
    %
    
    
    0.98
    %Net charge-offs for quarter to average loans, annualized
    
    
    0.86
    %
    
    
    0.32
    %
  September 30, 2009
    
    December 31, 2008Amount
    
    Non
    
    Percentage of
    
    Amount
    
    
    
    
    
    Percentage ofof Non
    
    Covered
    
    Non Covered
    
    of Non
    
    Non Covered
    
    Non CoveredAccrual
    
    Loans
    
    Loans
    
    Accrual
    
    Loans
    
    LoansOpen End 1-4 Family Loans
    
    $
    
    
    
    $
    20,075
    
    
    
    0.00
    %
    
    $
    276
    
    
    $
    30,323
    
    
    
    0.91
    %1-4 Family First Liens
    
    
    2,020
    
    
    
    108,380
    
    
    
    1.86
    %
    
    
    318
    
    
    
    99,284
    
    
    
    0.32
    %Total residential 1-4 family
    
    
    2,020
    
    
    
    128,455
    
    
    
    1.57
    %
    
    
    594
    
    
    
    129,607
    
    
    
    0.46
    %Owner occupied nonfarm nonresidential
    
    
    
    
    
    
    43,423
    
    
    
    0.00
    %
    
    
    200
    
    
    
    63,218
    
    
    
    0.32
    %Non owner occupied nonfarm nonresidential
    
    
    4,413
    
    
    
    111,768
    
    
    
    3.95
    %
    
    
    582
    
    
    
    93,872
    
    
    
    0.62
    %Total commercial
    
    
    4,413
    
    
    
    155,191
    
    
    
    2.84
    %
    
    
    782
    
    
    
    157,090
    
    
    
    0.50
    %1-4 Family Construction
    
    
    855
    
    
    
    50,842
    
    
    
    1.68
    %
    
    
    1,194
    
    
    
    36,277
    
    
    
    3.29
    %Other construction and land dev.
    
    
    12,687
    
    
    
    131,902
    
    
    
    9.62
    %
    
    
    461
    
    
    
    103,238
    
    
    
    0.45
    %Total construction
    
    
    13,542
    
    
    
    182,744
    
    
    
    7.41
    %
    
    
    1,655
    
    
    
    139,515
    
    
    
    1.19
    %Second mortgages
    
    
    199
    
    
    
    14,051
    
    
    
    1.42
    %
    
    
    497
    
    
    
    15,599
    
    
    
    3.19
    %Multifamily
    
    
    
    
    
    
    10,757
    
    
    
    0.00
    %
    
    
    
    
    
    
    9,370
    
    
    
    0.00
    %Agriculture
    
    
    
    
    
    
    3,907
    
    
    
    0.00
    %
    
    
    433
    
    
    
    5,143
    
    
    
    8.42
    %Total real estate loans
    
    
    20,174
    
    
    
    495,105
    
    
    
    4.07
    %
    
    
    3,961
    
    
    
    456,324
    
    
    
    0.87
    %Agriculture loans
    
    
    
    
    
    
    1,407
    
    
    
    0.00
    %
    
    
    
    
    
    
    988
    
    
    
    0.00
    %Commercial and industrial loans
    
    
    194
    
    
    
    45,348
    
    
    
    0.43
    %
    
    
    224
    
    
    
    44,332
    
    
    
    0.51
    %Total commercial loans
    
    
    194
    
    
    
    46,755
    
    
    
    0.41
    %
    
    
    224
    
    
    
    45,320
    
    
    
    0.49
    %Total revolving credit and other consumer
    
    
    204
    
    
    
    15,977
    
    
    
    1.28
    %
    
    
    25
    
    
    
    14,457
    
    
    
    0.17
    %All other loans
    
    
    
    
    
    
    11,700
    
    
    
    0.00
    %
    
    
    324
    
    
    
    7,005
    
    
    
    4.63
    %Gross loans
    
    $
    20,572
    
    
    $
    569,537
    
    
    
    3.61
    %
    
    $
    4,534
    
    
    $
    523,106
    
    
    
    0.87
    %
 30




---



##### 



Covered Loans
   Amount
    
    
    % of Total(in thousands)
    
    
    Non Performing AssetsNonaccrual loans
    
    $
    65,990
    
    
    
    76.23
    %Loans past due over 90 days
    
    
    
    
    
    
    
    %Other real estate owned
    
    
    16,823
    
    
    
    93.47
    %Total nonperforming assets
    
    $
    82,813
    
    
    
    78.11
    %
 Total Delinquencies
  September 30,
    

    December 31,30-89 Days Past Due
    
    2009
    

    2008Covered
    
    $
    13,324
    
    
    $
    Non-covered
    
    
    6,257
    
    
    
    15,191Total
    
    $
    19,581
    
    
    $
    15,191Percent of Total LoansCovered
    
    
    5.44
    %
    
    NANon-covered
    
    
    1.10
    %
    
    
    2.90
    %Total
    
    
    2.40
    %
    
    
    2.90
    %
 Capital Requirements
   31




---



##### 



Liquidity
  Off-Balance Sheet Arrangements and Contractual Obligations
   32




---



##### 



Supplemental Information on Predecessors
  BOE Financial Services of Virginia, Inc. (BOE)
 Results of Operations
       TransCommunity Financial Corporation (TFC)
 Results of Operations
       33




---



##### 



Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
    Change In Net Interest Income(dollars in thousands)
    
    %
    
    $Interest Rate Shock:+200 basis points
    
    
    -2.74
    %
    
    
    (1,186
    )+100 basis points
    
    
    -1.95
    %
    
    
    (842
    )No change
    
    
    0.00
    %
    
    
    -100 basis points
    
    
    3.31
    %
    
    
    1,431-200 basis points
    
    
    7.69
    %
    
    
    3,325
   34




---



##### 



Item 4. Controls and Procedures
 Disclosure Controls and Procedures
    Internal Control over Financial Reporting
  35




---



##### 



36




---



##### 



Remediation Steps to Address Material Weakness
     37




---



##### 



38




---



##### 



PART II. OTHER INFORMATION
 
 Item 1. Legal Proceedings
  
 Item 1A. Risk Factors
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  
 Item 3. Defaults upon Senior Securities
  
 Item 4. Submission of Matters to a Vote of Security Holders
  
 Item 5. Other Information
  
 Item 6. Exhibits
 Exhibit No.
    
    Description31.1
    
    Rule 13a-14(a)/15d-14(a) Certification for Chief Executive Officer*31.2
    
    Rule 13a-14(a)/15d-14(a) Certification for Chief Financial Officer*32.1
    
    Section 1350 Certifications*99.1
    
    Risk Factors*
 
 *
    
    Filed herewith. 39




---



##### 



SIGNATURES
  COMMUNITY BANKERS TRUST CORPORATION
(Registrant)/s/  George M. Longest, Jr.George M. Longest, Jr.President and Chief Executive Officer  /s/  Bruce E. ThomasBruce E. ThomasSenior Vice President and Chief Financial Officer  40




---



##### 



EXHIBIT INDEX
 Exhibit No.
    
    Description of Exhibit31.1
    
    Rule 13a-14(a)/15d-14(a) Certification for Chief Executive Officer31.2
    
    Rule 13a-14(a)/15d-14(a) Certification for Chief Financial Officer32.1
    
    Section 1350 Certifications99.1
    
    Risk Factors
 41