Community Bankers Trust (ESXB) in Glen Allen, Va., has redeemed $2.5 million of preferred shares issued to the Treasury Department under the Troubled Asset Relief Program.
The repurchase of 2,500 shares will reduce the companys quarterly dividend payments to the Treasury by $31,250, according to Community Bankers press release Wednesday. Earnings from its Essex Bank subsidiary funded the payment.
The Treasury still owns 10,680 shares of Community Bankers preferred stock, an investment worth $10.7 million. The Treasury also holds a 2008 warrant to purchase 780,000 shares of the companys common stock at $3.40 per share.
"We remain on track with our plan to repay the Tarp funds through quarterly payments, and we are pleased that this quarter's amount is slightly higher than we had planned when we began these payments in July 2013, Rex Smith, the chief executive of Community Bankers, said in the release. Our ability to repay these funds through earnings remains a key indicator of our ongoing positive operating performance and strong capital position, both of which contribute to viable long-term strategies and prospects."
Community Bankers has $1.1 billion of assets and operates 19 offices in Virginia and Maryland.