UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2012

or

¨ 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

(Exact name of registrant as specified in its charter)

Delaware	20-2652949
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
4235 Innslake Drive, Suite 200 Glen Allen, Virginia	23060
(Address of principal executive offices)	(Zip Code)

(804) 934-9999

(Registrant’s telephone number, including area code)

n/a

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

At September 30, 2012, there were 21,656,951 shares of the Company’s common stock outstanding.

COMMUNITY BANKERS TRUST CORPORATION

TABLE OF CONTENTS

FORM 10-Q

September 30, 2012

PART I — FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statements of Financial Condition	3
Consolidated Statements of Operations (Unaudited)	4
Consolidated Statements of Comprehensive Income (Unaudited)	5
Consolidated Statements of Stockholders’ Equity	6
Consolidated Statements of Cash Flows (Unaudited)	7
Notes to Unaudited Consolidated Financial Statements	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	37
Item 3. Quantitative and Qualitative Disclosures About Market Risk	53
Item 4. Controls and Procedures	54
PART II — OTHER INFORMATION
Item 1. Legal Proceedings	55
Item 1A. Risk Factors	55
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	55
Item 3. Defaults upon Senior Securities	55
Item 4. Mine Safety Disclosures	55
Item 5. Other Information	55
Item 6. Exhibits	55
SIGNATURES	56

2

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

COMMUNITY BANKERS TRUST CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

AS OF SEPTEMBER 30, 2012 AND DECEMBER 31, 2011

(dollars in thousands)

	September 30, 2012			December 31, 2011
	(Unaudited)			(Audited)
ASSETS
Cash and due from banks	$	15,116		$	11,078
Interest-bearing bank deposits		17,298			10,673
Federal funds sold		5,000			—
Total cash and cash equivalents		37,414			21,751
Securities available for sale, at fair value		256,394			232,764
Securities held to maturity, at cost (fair value of $52,013 and $68,585, respectively)		48,689			64,422
Equity securities, restricted, at cost		7,351			6,872
Total securities		312,434			304,058
Loans held for resale		1,736			580
Loans not covered by FDIC shared loss agreement		559,532			544,718
Loans covered by FDIC shared loss agreement		89,121			97,561
Total loans		648,653			642,279
Allowance for loan losses (non-covered loans of $14,303 and $14,835, respectively; covered loans of $456 and $776, respectively)		(14,759	)		(15,611	)
Net loans		633,894			626,668
FDIC indemnification asset		36,191			42,641
Bank premises and equipment, net		34,002			35,084
Other real estate owned, covered by FDIC shared loss agreement		2,943			5,764
Other real estate owned, non-covered		11,896			10,252
Bank owned life insurance		15,008			14,592
FDIC receivable under shared loss agreement		715			1,780
Core deposit intangibles, net		10,863			12,558
Other assets		15,181			16,768
Total assets	$	1,112,277		$	1,092,496
LIABILITIES
Deposits:
Noninterest-bearing	$	78,388		$	64,953
Interest-bearing		862,368			868,538
Total deposits		940,756			933,491
Federal Home Loan Bank advances		50,000			37,000
Trust preferred capital notes		4,124			4,124
Other liabilities		4,259			6,701
Total liabilities		999,139			981,316
Commitment and Contingencies (Note 12)
STOCKHOLDERS’ EQUITY
Preferred stock (5,000,000 shares authorized, $0.01 par value; 17,680 shares issued and outstanding)		17,680			17,680
Warrants on preferred stock		1,037			1,037
Discount on preferred stock		(289	)		(454	)
Common stock (200,000,000 shares authorized, $0.01 par value; 21,656,951 and 21,627,549 shares issued and outstanding, respectively)		217			216
Additional paid in capital		144,351			144,243
Retained deficit		(51,906	)		(53,761	)
Accumulated other comprehensive income		2,048			2,219
Total stockholders’ equity		113,138			111,180
Total liabilities and stockholders’ equity	$	1,112,277		$	1,092,496

See accompanying notes to unaudited consolidated financial statements

3

COMMUNITY BANKERS TRUST CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011

(dollars and shares in thousands, except per share data)

	Three months ended						Nine months ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Interest and dividend income
Interest and fees on non-covered loans	$	7,710		$	7,314		$	22,971		$	21,877
Interest and fees on FDIC covered loans		2,931			4,667			11,211			13,325
Interest on federal funds sold		—			1			4			5
Interest on deposits in other banks		9			28			40			53
Interest and dividends on securities
Taxable		2,103			2,058			6,219			6,055
Nontaxable		119			204			355			844
Total interest and dividend income		12,872			14,272			40,800			42,159
Interest expense
Interest on deposits		2,056			2,621			6,650			8,312
Interest on federal funds purchased		3			—			6			1
Interest on other borrowed funds		280			353			982			1,051
Total interest expense		2,339			2,974			7,638			9,364
Net interest income		10,533			11,298			33,162			32,795
Provision for loan losses		—			—			750			1,498
Net interest income after provision for loan losses		10,533			11,298			32,412			31,297
Noninterest income
Service charges on deposit accounts		716			643			2,007			1,856
FDIC indemnification asset amortization		(1,579	)		(2,359	)		(5,444	)		(7,762	)
Gain on securities transactions, net		1,180			1,725			1,354			2,563
Loss on sale of other real estate, net		(767	)		(1,671	)		(1,173	)		(2,532	)
Other		602			1,000			1,647			2,377
Total noninterest income		152			(662	)		(1,609	)		(3,498	)
Noninterest expense
Salaries and employee benefits		4,028			4,050			12,443			12,425
Occupancy expenses		708			687			2,024			2,234
Equipment expenses		266			289			831			938
Legal fees		3			241			42			381
Professional fees		74			68			307			457
FDIC assessment		368			580			1,448			2,212
Data processing fees		473			478			1,489			1,407
Amortization of intangibles		565			565			1,695			1,696
Other operating expenses		1,554			1,724			4,815			5,479
Total noninterest expense		8,039			8,682			25,094			27,229
Income before income taxes		2,646			1,954			5,709			570
Income tax (expense) benefit		(837	)		(532	)		(1,700	)		178
Net income		1,809			1,422			4,009			748
Dividends paid on preferred stock		221			—			663			—
Accretion of discount on preferred stock		55			51			165			155
Accumulated preferred dividends		—			221			—			663
Net income (loss) available to common stockholders	$	1,533		$	1,150		$	3,181		$	(70	)
Net income (loss) per share — basic	$	0.07		$	0.05		$	0.15		$	(0.00	)
Net income (loss) per share — diluted	$	0.07		$	0.05		$	0.15		$	(0.00	)
Weighted average number of shares outstanding
basic		21,651			21,628			21,640			21,544
diluted		21,743			21,628			21,691			21,544

See accompanying notes to unaudited consolidated financial statements

4

COMMUNITY BANKERS TRUST CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011

(dollars in thousands, except per share data)

	Three months ended						Nine months ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Net income	$	1,809		$	1,422		$	4,009		$	748
Other comprehensive income:
Change in unrealized gain in investment securities		39			2,068			1,095			6,606
Tax related to unrealized (gain) in investment securities		(13	)		(703	)		(372	)		(2,246	)
Reclassification adjustment for (gain) in securities sold		(1,180	)		(1,725	)		(1,354	)		(2,563	)
Tax related to realized gain in securities sold		401			587			460			871
Total other comprehensive income (loss)		(753	)		227			(171	)		2,668
Total comprehensive income	$	1,056		$	1,649		$	3,838		$	3,416

See accompanying notes to unaudited consolidated financial statements

5

COMMUNITY BANKERS TRUST CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND

THE YEAR ENDED DECEMBER 31, 2011

(dollars and shares in thousands)

														Retained Deficit			Accumulated Other Comprehensive Income			Total
					Discount on  Preferred Stock							Additional Paid in Capital
	Preferred							Common Stock
	Stock		Warrants					Shares		Amount
Balance January 1, 2011	$	17,680	$	1,037	$	(660	)		21,468	$	215	$	143,999	$	(54,999	)	$	(145	)	$	107,127
Amortization of preferred stock warrants		—		—		206			—		—		—		(206	)		—			—
Issuance of common stock		—		—		—			160		1		182		—			—			183
Issuance of stock options		—		—		—			—		—		62		—			—			62
Net income		—		—		—			—		—		—		1,444			—			1,444
Other comprehensive income		—		—		—			—		—		—		—			2,364			2,364
Balance December 31, 2011 (Audited)	$	17,680	$	1,037	$	(454	)		21,628	$	216	$	144,243	$	(53,761	)	$	2,219		$	111,180
Amortization of preferred stock warrants		—		—		165			—		—		—		(165	)		—			—
Issuance of common stock		—		—		—			29		1		65		—			—			66
Dividends paid on preferred stock		—		—		—			—		—		—		(1,989	)		—			(1,989	)
Issuance of stock options		—		—		—			—		—		43		—			—			43
Net income		—		—		—			—		—		—		4,009			—			4,009
Other comprehensive (loss)		—		—		—			—		—		—		—			(171	)		(171	)
Balance September 30, 2012 (Unaudited)	$	17,680	$	1,037	$	(289	)		21,657	$	217	$	144,351	$	(51,906	)	$	2,048		$	113,138

See accompanying notes to unaudited consolidated financial statements

6

COMMUNITY BANKERS TRUST CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011

(dollars in thousands)

	September 30, 2012			September 30, 2011
Operating activities:
Net income	$	4,009		$	748
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and intangibles amortization		2,981			3,046
Issuance of common stock and stock options		109			183
Provision for loan losses		750			1,498
Provision for deferred income taxes		1,700			—
Amortization of security premiums and accretion of discounts, net		2,414			1,370
Net (gain) on sale of securities		(1,354	)		(2,563	)
Net loss on sale and valuation of other real estate		1,173			2,532
Changes in assets and liabilities:
(Increase) in loans held for sale		(1,156	)		—
Decrease in other assets		7,074			18,675
Decrease in accrued expenses and other liabilities		(2,441	)		(516	)
Net cash provided by operating activities		15,259			24,973
Investing activities:
Proceeds from securities sales, calls, maturities, and paydowns		175,501			241,056
Purchase of securities		(185,198	)		(220,161	)
Proceeds from sale of other real estate		7,709			6,438
Improvements and additions of other real estate, net of insurance proceeds		(791	)		(154	)
Net (decrease) increase in loans		(17,160	)		13,915
Principal recoveries of loans previously charged off		2,270			548
Purchase of premises and equipment, net		(203	)		(499	)
Net cash (used in) provided by investing activities		(17,872	)		41,143
Financing activities:
Net increase (decrease) in noninterest-bearing and interest-bearing demand deposits		7,265			(46,109	)
Net increase in Federal Home Loan Bank borrowings		13,000			—
Cash dividends paid		(1,989	)		—
Net cash provided by (used in) financing activities		18,276			(46,109	)
Net increase in cash and cash equivalents		15,663			20,007
Cash and cash equivalents:
Beginning of the period	$	21,751		$	33,381
End of the period	$	37,414		$	53,388
	September 30, 2012			September 30, 2011
Supplemental disclosures of cash flow information:
Interest paid	$	8,149		$	9,674
Income taxes paid		120			87
Transfers of OREO property		6,914			9,792
Transfers of OREO to bank premises		—			700

See accompanying notes to unaudited consolidated financial statements

7

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

1. NATURE OF BANKING ACITIVIES AND SIGNIFICANT ACCOUNTING POLICIES

Organization

Community Bankers Trust Corporation (the “Company”) is a bank holding company that was incorporated under Delaware law on April 6, 2005. The Company is headquartered in Glen Allen, Virginia and is the holding company for Essex Bank (the “Bank”), a Virginia state bank with 24 full-service offices in Virginia, Maryland and Georgia. The Bank also operates one loan production office.

The Bank engages in a general commercial banking business and provides a wide range of financial services primarily to individuals and small businesses, including individual and commercial demand and time deposit accounts, commercial and industrial loans, consumer and small business loans, real estate and mortgage loans, investment services, on-line and mobile banking products, and safe deposit box facilities. Thirteen offices are located in Virginia, from the Chesapeake Bay to just west of Richmond, seven are located in Maryland along the Baltimore-Washington corridor and four are located in the Atlanta, Georgia metropolitan market.

Financial Statements

The consolidated statements presented include accounts of the Company and the Bank, its wholly-owned subsidiary. All material intercompany balances and transactions have been eliminated. The statements should be read in conjunction with the Company’s consolidated financial statements and the accompanying notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. The accounting and reporting policies of the Company conform to generally accepted accounting principles (GAAP) and to the general practices within the banking industry. The interim financial statements have not been audited; however, in the opinion of management, all adjustments, consisting of normal accruals, were made that are necessary to present fairly the financial position of the Company as of September 30, 2012, changes in stockholders’ equity and cash flows for the nine months ended September 30, 2012, and the results of operations for the three and nine months ended September 30, 2012. Results for the three and nine month periods ended September 30, 2012 are not necessarily indicative of the results that may be expected for the year ended December 31, 2012.

The financial information contained within the statements is, to a significant extent, financial information that is based on measures of the financial effects of transactions and events that have already occurred. A variety of factors could affect the ultimate value that is obtained when either earning income, recognizing an expense, recovering an asset or relieving a liability. The Company uses historical loss factors as one factor in determining the inherent loss that may be present in its loan portfolio. Actual losses could differ significantly from the historical factors that the Company uses. In addition, GAAP itself may change from one previously acceptable method to another method. Although the economics of the Company’s transactions would be the same, the timing of events that would impact its transactions could change.

Certain reclassifications have been made to prior period balances to conform to the current period presentation.

In preparing these financial statements, the Company has evaluated subsequent events and transactions for potential recognition or disclosure through the date the financial statements were issued.

Recent Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS. This ASU represents the converged guidance of the FASB and the International Accounting Standards Board (the Boards) on fair value measurement. The collective efforts of the Boards have provided common requirements for measuring fair value and for disclosing information about fair value measurements, including a consistent meaning of the term “fair value” for both U.S. GAAP and IFRS (International Financial Reporting Standards) regulations. The Boards have concluded the common requirements will result in greater comparability of fair value measurements presented and disclosed in financial statements prepared in

8

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

accordance with U.S. GAAP and IFRS. The amendments are effective during interim and annual periods beginning after December 15, 2011 and are to be applied prospectively. The Company adopted this guidance with no material impact on its consolidated financial statements.

In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. The ASU eliminates the option to present other comprehensive income as a part of the statement of changes in stockholders’ equity and requires consecutive presentation of the statement of net income and other comprehensive income. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and are to be applied retrospectively. In December 2011, the topic was further amended to defer the effective date of presenting reclassification adjustments from other comprehensive income to net income on the face of the financial statements. Companies should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect prior to this ASU while FASB redeliberates future requirements. The Company adopted this guidance, except for the deferred items above, with no material impact on its consolidated financial statements. The Company does not expect the adoption of the deferred items to have a material impact on its consolidated financial statements.

In June 2012, the FASB issued ASU 2012-06, Business Combinations (Topic 805): Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution. The objective of this ASU is to address the diversity in practice about how to interpret the terms on the same basis and contractual limitations when subsequently measuring an indemnification asset recognized in a government-assisted (Federal Deposit Insurance Corporation or National Credit Union Administration) acquisition of a financial institution that includes a loss-sharing agreement (indemnification agreement).

When a reporting entity recognizes an indemnification asset (in accordance with Subtopic 805-20) as a result of a government-assisted acquisition of a financial institution and subsequently a change in the cash flows expected to be collected on the indemnification asset occurs (as a result of a change in cash flows expected to be collected on the assets subject to indemnification), the reporting entity should subsequently account for the change in the measurement of the indemnification asset on the same basis as the change in the assets subject to indemnification. Any amortization of changes in value should be limited to the contractual term of the indemnification agreement (i.e., the lesser of the term of the indemnification agreement and the remaining life of the indemnified assets). The amendments are effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2012. Early adoption is permitted. The Company’s accounting policy for its indemnification asset conforms to the guidance above; therefore, no changes are necessary for adoption.

9

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

2. SECURITIES

Amortized costs and fair values of securities available for sale and held to maturity at September 30, 2012 and December 31, 2011 were as follows (dollars in thousands):

	September 30, 2012
			Gross Unrealized
	Amortized Cost		Gains		Losses			Fair Value
Securities Available for Sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	111,523	$	234	$	(858	)	$	110,899
U.S. Gov’t sponsored agencies		501		8		—			509
State, county and municipal		100,847		5,253		(363	)		105,737
Corporate and other bonds		6,536		81		(9	)		6,608
Mortgage backed – U.S. Gov’t agencies		16,888		400		(51	)		17,237
Mortgage backed – U.S. Gov’t sponsored agencies		15,422		115		(133	)		15,404
Total Securities Available for Sale	$	251,717	$	6,091	$	(1,414	)	$	256,394
Securities Held to Maturity
State, county and municipal	$	11,832	$	1,222	$	—		$	13,054
Mortgage backed – U.S. Gov’t agencies		10,099		721		—			10,820
Mortgage backed – U.S. Gov’t sponsored agencies		26,758		1,381		—			28,139
Total Securities Held to Maturity	$	48,689	$	3,324	$	—		$	52,013
	December 31, 2011
			Gross Unrealized
	Amortized Cost		Gains		Losses			Fair Value
Securities Available for Sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	7,255	$	159	$	—		$	7,414
U.S. Gov’t sponsored agencies		1,005		28		—			1,033
State, county and municipal		58,183		3,867		(7	)		62,043
Corporate and other bonds		4,801		1		(171	)		4,631
Mortgage backed – U.S. Gov’t agencies		73,616		734		(257	)		74,093
Mortgage backed – U.S. Gov’t sponsored agencies		82,966		778		(194	)		83,550
Total Securities Available for Sale	$	227,826	$	5,567	$	(629	)	$	232,764
Securities Held to Maturity
State, county and municipal	$	12,168	$	1,311	$	—		$	13,479
Mortgage backed – U.S. Gov’t agencies		12,743		822		—			13,565
Mortgage backed – U.S. Gov’t sponsored agencies		39,511		2,030		—			41,541
Total Securities Held to Maturity	$	64,422	$	4,163	$	—		$	68,585

10

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

The amortized cost and fair value of securities at September 30, 2012 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without any penalties.

	Held to Maturity				Available for Sale
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	3,588	$	3,625	$	5,454	$	5,424
Due after one year through five years		38,843		41,281		42,554		43,030
Due after five years through ten years		6,258		7,107		121,187		125,589
Due after ten years		—		—		82,522		82,351
Total securities	$	48,689	$	52,013	$	251,717	$	256,394

Gains and losses on the sale of securities are recorded on the settlement date and are determined using the specific identification method. Gross realized gains and losses on sales and other than temporary impairments (OTTI) of securities available for sale during the periods were as follows (dollars in thousands):

	Three Months Ended						Nine Months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Gross realized gains	$	1,337		$	1,791		$	2,062		$	2,645
Gross realized losses		(157	)		(66	)		(708	)		(82	)
Net securities gains	$	1,180		$	1,725		$	1,354		$	2,563

In estimating OTTI losses, management considers the length of time and the extent to which the fair value has been less than cost, the financial condition and short-term prospects for the issuer, and the intent and ability of management to hold its investment for a period of time to allow a recovery in fair value. There were no investments held that had impairment losses other than temporary in nature for the three and nine months ended September 30, 2012 and 2011.

11

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

The fair value and gross unrealized losses for securities, segregated by the length of time that individual securities have been in a continuous gross unrealized loss position, at September 30, 2012 and December 31, 2011 were as follows (dollars in thousands):

	September 30, 2012
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury issue and other U.S. Gov’t agencies	$	78,539	$	(858	)	$	—	$	—		$	78,539	$	(858	)
U.S. Gov’t sponsored agencies		—		—			—		—			—		—
State, county and municipal		23,615		(363	)		—		—			23,615		(363	)
Corporate and other bonds		1,484		(8	)		501		(1	)		1,985		(9	)
Mortgage backed – U.S. Gov’t agencies		3,420		(49	)		701		(2	)		4,121		(51	)
Mortgage backed – U.S. Gov’t sponsored agencies		12,051		(133	)		—		—			12,051		(133	)
Total	$	119,109	$	(1,411	)	$	1,202	$	(3	)	$	120,311	$	(1,414	)
	December 31, 2011
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury issue and other U.S. Gov’t agencies	$	—	$	—		$	—	$	—		$	—	$	—
U.S. Gov’t sponsored agencies		—		—			—		—			—		—
State, county and municipal		1,242		(7	)		—		—			1,242		(7	)
Corporate and other bonds		4,380		(171	)		—		—			4,380		(171	)
Mortgage backed – U.S. Gov’t agencies		38,324		(257	)		—		—			38,324		(257	)
Mortgage backed – U.S. Gov’t sponsored agencies		25,435		(194	)		—		—			25,435		(194	)
Total	$	69,381	$	(629	)	$	—	$	—		$	69,381	$	(629	)

The unrealized losses in the investment portfolio at September 30, 2012 and December 31, 2011 are generally a result of market fluctuations that occur daily. The unrealized losses are from 75 securities at September 30, 2012. Of those, 72 are investment grade, U.S. government agency guarantees, or the full faith and credit of local municipalities throughout the United States. Investment grade corporate obligations comprise the remaining three securities with unrealized losses at September 30, 2012. The Company considers the reason for impairment, length of impairment and ability to hold until the full value is recovered in determining if the impairment is temporary in nature. Based on this analysis, the Company has determined these impairments to be temporary in nature. The Company does not intend to sell and it is more likely than not that the Company will not be required to sell these securities until they recover in value.

Market prices are affected by conditions beyond the control of the Company. Investment decisions are made by the management group of the Company and reflect the overall liquidity and strategic asset/liability objectives of the Company. Management analyzes the securities portfolio frequently and manages the portfolio to provide an overall positive impact to the Company’s income statement and balance sheet.

Securities with amortized costs of $80.5 million and $34.1 million at September 30, 2012 and December 31, 2011, respectively, were pledged to secure deposits and for other purposes required or permitted by law. At each of September 30, 2012 and December 31, 2011, there were no securities purchased from a single issuer, other than U.S. Treasury issue and other U.S. Government agencies, that comprised more than 10% of the consolidated shareholders’ equity.

12

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

3. LOANS NOT COVERED BY FDIC SHARED LOSS AGREEMENT (NON-COVERED LOANS)

The Company’s non-covered loans at September 30, 2012 and December 31, 2011 were comprised of the following (dollars in thousands):

	September 30, 2012						December 31, 2011
	Amount			% of Non-Covered Loans			Amount			% of Non-Covered Loans
Mortgage loans on real estate:
Residential 1-4 family	$	131,192			23.44	%	$	127,200			23.34	%
Commercial		241,692			43.18			220,471			40.46
Construction and land development		64,304			11.49			75,691			13.89
Second mortgages		7,569			1.35			8,129			1.49
Multifamily		22,018			3.93			19,746			3.62
Agriculture		10,527			1.88			11,444			2.10
Total real estate loans		477,302			85.27			462,681			84.90
Commercial loans		73,415			13.12			72,149			13.24
Consumer installment loans		7,442			1.33			8,461			1.55
All other loans		1,565			0.28			1,659			0.31
Gross loans		559,724			100.00	%		544,950			100.00	%
Less unearned income on loans		(192	)					(232	)
Non-covered loans, net of unearned income	$	559,532					$	544,718

The Company held $42.0 million and $36.5 million in balances of loans guaranteed by the United States Department of Agriculture (USDA), which are included in various categories in the table above, at September 30, 2012 and December 31, 2011, respectively. As these loans are 100% guaranteed by the USDA, no loan loss provision is required. These loan balances included an unamortized purchase premium of $3.7 million and $3.6 million at September 30, 2012 and December 31, 2011, respectively. Unamortized purchase premium is recognized as an adjustment of the related loan yield using the interest method.

At September 30, 2012 and December 31, 2011, the Company’s allowance for credit losses was comprised of the following: (i) specific valuation allowances calculated in accordance with FASB ASC 310, Receivables , (ii) general valuation allowances calculated in accordance with FASB ASC 450, Contingencies, based on economic conditions and other qualitative risk factors, and (iii) historical valuation allowances calculated using historical loan loss experience. Management identified loans subject to impairment in accordance with ASC 310.

At September 30, 2012 and December 31, 2011, a portion of the construction and land development loans presented above contained interest reserve provisions. The Company follows standard industry practice to include interest reserves and capitalized interest in a construction loan. This practice recognizes interest as an additional cost of the project and, as a result, requires the borrower to put additional equity into the project. In order to monitor the project throughout its life to make sure the property is moving along as planned to ensure appropriateness of continuing to capitalize interest, the Company coordinates an independent property inspection in connection with each disbursement of loan funds. Until completion, there is generally no cash flow from which to make the interest payment. The Company does not advance additional interest reserves to keep a loan from becoming nonperforming.

There were no significant amounts of interest reserves recognized as interest income on construction loans with interest reserves for the three and nine months ended September 30, 2012 and 2011. Nonperforming construction loans with interest reserves were $4.8 million at September 30, 2012 and December 31, 2011.

Interest income on nonaccrual loans, if recognized, is recorded using the cash basis method of accounting. There were no significant amounts recognized during either of the three and nine months ended September 30, 2012 and 2011. For the three months ended September 30, 2012 and 2011, estimated interest income of $473,000 and $836,000, respectively, would have been recorded if all such loans had been accruing interest according to their original contractual terms. For the nine months ended September 30, 2012 and 2011, estimated interest income of $1.2 million and $2.3 million, respectively, would have been recorded if all such loans had been accruing interest according to their original contractual terms.

13

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

The following table summarizes information related to impaired loans as of September 30, 2012 (dollars in thousands):

	Recorded Investment  (1)		Unpaid Principal Balance (2)		Related Allowance
With an allowance recorded:
Mortgage loans on real estate:
Residential 1-4 family	$	4,703	$	5,438	$	819
Commercial		2,168		2,266		323
Construction and land development		10,028		12,117		1,683
Second mortgages		171		176		27
Multifamily		—		—		—
Agriculture		54		345		9
Total real estate loans		17,124		20,342		2,861
Commercial loans		631		698		92
Consumer installment loans		125		138		13
All other loans		—		—		—
Subtotal impaired loans with valuation allowance		17,880		21,178		2,966
With no related allowance recorded:
Mortgage loans on real estate:
Residential 1-4 family		1,678		1,716		—
Commercial		6,749		7,182		—
Construction and land development		465		508		—
Second mortgages		—		—		—
Multifamily		—		—		—
Agriculture		—		—		—
Total real estate loans		8,892		9,406		—
Commercial loans		71		76		—
Consumer installment loans		10		10		—
All other loans		—		—		—
Subtotal impaired loans without valuation		8,973		9,492		—
Total:
Mortgage loans on real estate:
Residential 1-4 family		6,381		7,154		819
Commercial		8,917		9,448		323
Construction and land development		10,493		12,625		1,683
Second mortgages		171		176		27
Multifamily		—		—		—
Agriculture		54		345		9
Total real estate loans		26,016		29,748		2,861
Commercial loans		702		774		92
Consumer installment loans		135		148		13
All other loans		—		—		—
Total impaired loans	$	26,853	$	30,670	$	2,966

(1) The amount of the investment in a loan, which is not net of a valuation allowance, but which does reflect any direct write-down of the investment

(2) The contractual amount due, which reflects paydowns applied in accordance with loan documents, but which does not reflect any direct write-downs

14

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

The following table summarizes information related to impaired loans as of December 31, 2011 (dollars in thousands):

	Recorded Investment  (1)		Unpaid Principal Balance (2)		Related Allowance
With an allowance recorded:
Mortgage loans on real estate:
Residential 1-4 family	$	3,432	$	3,497	$	1,000
Commercial		6,240		6,362		713
Construction and land development		3,541		6,611		653
Second mortgages		143		156		80
Multifamily		—		—		—
Agriculture		—		—		—
Total real estate loans		13,356		16,626		2,446
Commercial loans		868		874		306
Consumer installment loans		70		71		13
All other loans		—		—		—
Subtotal impaired loans with valuation allowance		14,294		17,571		2,765
With no related allowance recorded:
Mortgage loans on real estate:
Residential 1-4 family		3,083		3,565		—
Commercial		7,972		8,454		—
Construction and land development		9,471		12,894		—
Second mortgages		59		59		—
Multifamily		—		—		—
Agriculture		53		53		—
Total real estate loans		20,638		25,025		—
Commercial loans		209		593		—
Consumer installment loans		17		17		—
All other loans		—		—		—
Subtotal impaired loans without valuation		20,864		25,635		—
Total:
Mortgage loans on real estate:
Residential 1-4 family		6,515		7,062		1,000
Commercial		14,212		14,816		713
Construction and land development		13,012		19,505		653
Second mortgages		202		215		80
Multifamily		—		—		—
Agriculture		53		53		—
Total real estate loans		33,994		41,651		2,446
Commercial loans		1,077		1,467		306
Consumer installment loans		87		88		13
All other loans		—		—		—
Total impaired loans	$	35,158	$	43,206	$	2,765

(1) The amount of the investment in a loan, which is not net of a valuation allowance, but which does reflect any direct write-down of the investment

(2) The contractual amount due, which reflects paydowns applied in accordance with loan documents, but which does not reflect any direct write-downs

15

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

The following table summarizes the average recorded investment of impaired loans for the three and nine months ended September 30, 2012 and September 30, 2011 (dollars in thousands):

	Three months ended				Nine months ended
	September 30, 2012		September 30, 2011		September 30, 2012		September 30, 2011
	Average Recorded Investment		Average Recorded Investment		Average Recorded Investment		Average Recorded Investment
With an allowance recorded:
Mortgage loans on real estate:
Residential 1-4 family	$	4,570	$	3,660	$	4,240	$	4,552
Commercial		3,581		3,406		4,871		4,586
Construction and land development		8,428		3,574		5,566		6,924
Second mortgages		117		155		153		185
Multifamily		—		—		—		—
Agriculture		27		53		14		99
Total real estate loans		16,723		10,848		14,844		16,346
Commercial loans		434		1,192		579		1,466
Consumer installment loans		150		78		130		74
All other loans		—		—		—		—
Subtotal impaired loans with valuation allowance		17,307		12,118		15,553		17,886
With no related allowance recorded:
Mortgage loans on real estate:
Residential 1-4 family		2,273		4,201		2,588		4,733
Commercial		6,050		9,023		6,806		7,125
Construction and land development		1,786		19,550		5,440		16,504
Second mortgages		39		40		34		93
Multifamily		—		—		—		—
Agriculture		27		—		40		13
Total real estate loans		10,175		32,814		14,908		28,468
Commercial loans		265		329		259		395
Consumer installment loans		10		10		20		31
All other loans		—		—		—		—
Subtotal impaired loans without valuation		10,450		33,153		15,187		28,894
Total:
Mortgage loans on real estate:
Residential 1-4 family		6,843		7,861		6,828		9,285
Commercial		9,631		12,429		11,677		11,711
Construction and land development		10,214		23,124		11,006		23,428
Second mortgages		156		195		187		278
Multifamily		—		—		—		—
Agriculture		54		53		54		112
Total real estate loans		26,898		43,662		29,752		44,814
Commercial loans		699		1,521		838		1,861
Consumer installment loans		160		88		150		105
All other loans		—		—		—		—
Total impaired loans	$	27,757	$	45,271	$	30,740	$	46,780

The majority of impaired loans are also nonaccruing, for which no interest income was recognized during each of the three and nine months ended September 30, 2012 and 2011. No significant amounts of interest income were recognized on accruing impaired loans for each of the three and nine months ended September 30, 2012 and 2011.

16

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

The following table presents non-covered nonaccruals by loan category as of September 30, 2012 and December 31, 2011 (dollars in thousands):

	September 30, 2012		December 31, 2011
Mortgage loans on real estate:
Residential 1-4 family	$	5,474	$	5,320
Commercial		8,916		9,187
Construction and land development		10,318		12,718
Second mortgages		140		189
Multifamily		—		—
Agriculture		54		53
Total real estate loans		24,902		27,467
Commercial loans		703		1,003
Consumer installment loans		125		72
All other loans		—		—
Total loans	$	25,730	$	28,542

Troubled debt restructures, some substandard, and doubtful loans still accruing interest are loans that management expects to ultimately collect all principal and interest due, but not under the terms of the original contract. A reconciliation of impaired loans to nonaccrual loans at September 30, 2012 and December 31, 2011, is set forth in the table below (dollars in thousands):

	September 30, 2012		December 31, 2011
Nonaccruals	$	25,730	$	28,542
Trouble debt restructure and still accruing		851		5,946
Substandard and still accruing		272		546
Doubtful and still accruing		—		124
Total impaired	$	26,853	$	35,158

The following tables present an age analysis of past due status of non-covered loans by category as of September 30, 2012 and December 31, 2011 (dollars in thousands):

	September 30, 2012
	30-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days Past Due and Accruing
Mortgage loans on real estate:
Residential 1-4 family	$	1,200	$	5,474	$	6,674	$	124,518	$	131,192	$	—
Commercial		55		8,916		8,971		232,721		241,692		—
Construction and land development		350		10,355		10,705		53,599		64,304		37
Second mortgages		19		188		207		7,362		7,569		48
Multifamily		—		—		—		22,018		22,018		—
Agriculture		—		54		54		10,473		10,527		—
Total real estate loans		1,624		24,987		26,611		450,691		477,302		85
Commercial loans		8		703		711		72,704		73,415		—
Consumer installment loans		51		125		176		7,266		7,442		—
All other loans		—		—		—		1,565		1,565		—
Total loans	$	1,683	$	25,815	$	27,498	$	532,226	$	559,724	$	85

17

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

	December 31, 2011
	30-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days Past Due and Accruing
Mortgage loans on real estate:
Residential 1-4 family	$	1,743	$	5,320	$	7,063	$	120,137	$	127,200	$	—
Commercial		1,085		11,192		12,277		208,194		220,471		2,005
Construction and land development		2,924		12,718		15,642		60,049		75,691		—
Second mortgages		709		189		898		7,231		8,129		—
Multifamily		—		—		—		19,746		19,746		—
Agriculture		—		53		53		11,391		11,444		—
Total real estate loans		6,461		29,472		35,933		426,748		462,681		2,005
Commercial loans		87		1003		1,090		71,059		72,149		—
Consumer installment loans		93		72		165		8,296		8,461		—
All other loans		—		—		—		1,659		1,659		—
Total loans	$	6,641	$	30,547	$	37,188	$	507,762	$	544,950	$	2,005

Activity in the allowance for loan losses on non-covered loans for the nine months ended September 30, 2012 and the year ended December 31, 2011 was comprised of the following (dollars in thousands):

	December 31, 2011		Provision Allocation			Charge offs			Recoveries		September 30, 2012
Mortgage loans on real estate:
Residential 1-4 family	$	3,451	$	2,095		$	(1,451	)	$	3	$	4,098
Commercial		3,048		403			(639	)		68		2,880
Construction and land development		5,729		(1,744	)		(923	)		1,628		4,690
Second mortgages		296		(91	)		0			56		261
Multifamily		224		48			0					272
Agriculture		25		19			0			0		44
Total real estate loans		12,773		730			(3,013	)		1,755		12,245
Commercial loans		1,810		216			(396	)		182		1,812
Consumer installment loans		241		50			(114	)		54		231
All other loans		11		4			0			0		15
Total loans	$	14,835	$	1,000		$	(3,523	)	$	1,991	$	14,303

18

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

	December 31, 2010		Provision Allocation			Charge offs			Recoveries		December 31, 2011
Mortgage loans on real estate:
Residential 1-4 family	$	6,262	$	(998	)	$	(1,831	)	$	18	$	3,451
Commercial		5,287		563			(2,856	)		54		3,048
Construction and land development		10,039		(288	)		(4,123	)		101		5,729
Second mortgages		406		(32	)		(81	)		3		296
Multifamily		260		(36	)		—			—		224
Agriculture		266		(241	)		—			—		25
Total real estate loans		22,520		(1,032	)		(8,891	)		176		12,773
Commercial loans		2,691		2,527			(3,615	)		207		1,810
Consumer installment loans		257		67			(288	)		205		241
All other loans		75		(64	)		—			—		11
Total loans	$	25,543	$	1,498		$	(12,794	)	$	588	$	14,835

The following tables present information on the non-covered loans evaluated for impairment in the allowance for loan losses as of September 30, 2012 and December 31, 2011 (dollars in thousands):

	September 30, 2012
	Allowance for Loan Losses						Recorded Investment in Loans
	Individually Evaluated for Impairment (1)		Collectively Evaluated for Impairment		Total		Individually Evaluated for Impairment (1)		Collectively Evaluated for Impairment		Total
Mortgage loans on real estate:
Residential 1-4 family	$	917	$	3,181	$	4,098	$	9,747	$	121,445	$	131,192
Commercial		438		2,442		2,880		16,383		225,309		241,692
Construction and land development		2,189		2,501		4,690		15,806		48,498		64,304
Second mortgages		39		222		261		282		7,287		7,569
Multifamily		—		272		272		—		22,018		22,018
Agriculture		8		36		44		55		10,472		10,527
Total real estate loans		3,591		8,654		12,245		42,273		435,029		477,302
Commercial loans		104		1,708		1,812		971		72,444		73,415
Consumer installment loans		14		217		231		142		7,300		7,442
All other loans		—		15		15		—		1,565		1,565
Total loans	$	3,709	$	10,594	$	14,303	$	43,386	$	516,338	$	559,724

19

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

	December 31, 2011
	Allowance for Loan Losses						Recorded Investment in Loans
	Individually Evaluated for Impairment (1)		Collectively Evaluated for Impairment		Total		Individually Evaluated for Impairment (1)		Collectively Evaluated for Impairment		Total
Mortgage loans on real estate:
Residential 1-4 family	$	1,088	$	2,363	$	3,451	$	8,921	$	118,279	$	127,200
Commercial		829		2,219		3,048		20,780		199,691		220,471
Construction and land development		1,792		3,937		5,729		22,538		53,153		75,691
Second mortgages		105		191		296		418		7,711		8,129
Multifamily		—		224		224		—		19,746		19,746
Agriculture		2		23		25		330		11,114		11,444
Total real estate loans		3,816		8,957		12,773		52,987		409,694		462,681
Commercial loans		308		1,502		1,810		1,250		70,899		72,149
Consumer installment loans		32		209		241		348		8,113		8,461
All other loans		1		10		11		127		1,532		1,659
Total loans	$	4,157	$	10,678	$	14,835	$	54,712	$	490,238	$	544,950

⁽¹⁾  The category “Individually Evaluated for Impairment” includes loans individually evaluated for impairment and determined not to be impaired. These loans total $16.5 million and $19.6 million at September 30, 2012 and December 31, 2011, respectively. The allowance for loans losses allocated to these loans is $743,000 and $1.4 million at September 30, 2012 and December 31, 2011, respectively.

Non-covered loans are monitored for credit quality on a recurring basis. These credit quality indicators are defined as follows:

Pass - A pass loan is not adversely classified, as it does not display any of the characteristics for adverse classification. This category includes purchased loans that are 100% guaranteed by U.S. Government agencies of $42.0 million and $36.5 million at September 30, 2012 and December 31, 2011, respectively.

Special Mention - A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, such potential weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention loans are not adversely classified and do not warrant adverse classification.

Substandard - A substandard loan is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard generally have a well defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility of loss if the deficiencies are not corrected.

Doubtful - A doubtful loan has all the weaknesses inherent in a loan classified as substandard with the added characteristics that the weaknesses make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions, and values.

20

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

The following tables present the composition of non-covered loans by credit quality indicator at September 30, 2012 and December 31, 2011 (dollars in thousands):

	September 30, 2012
	Pass		Special Mention		Substandard		Doubtful		Total
Mortgage loans on real estate:
Residential 1-4 family	$	113,504	$	8,235	$	9,453	$	—	$	131,192
Commercial		203,939		21,372		16,381		—		241,692
Construction and land development		37,663		10,835		15,806		—		64,304
Second mortgages		6,890		397		282		—		7,569
Multifamily		20,841		1,177		—		—		22,018
Agriculture		10,473		—		54		—		10,527
Total real estate loans		393,310		42,016		41,976		—		477,302
Commercial loans		71,254		1,189		972		—		73,415
Consumer installment loans		7,083		217		142		—		7,442
All other loans		1,565		—		—		—		1,565
Total loans	$	473,212	$	43,422	$	43,090	$	—	$	559,724
	December 31, 2011
	Pass		Special Mention		Substandard		Doubtful		Total
Mortgage loans on real estate:
Residential 1-4 family	$	107,926	$	10,519	$	8,688	$	67	$	127,200
Commercial		162,744		39,506		18,221		—		220,471
Construction and land development		34,391		18,876		22,424		—		75,691
Second mortgages		7,135		576		418		—		8,129
Multifamily		16,199		3,547		—		—		19,746
Agriculture		10,897		494		53		—		11,444
Total real estate loans		339,292		73,518		49,804		67		462,681
Commercial loans		68,511		1,983		1,597		58		72,149
Consumer installment loans		7,878		235		343		5		8,461
All other loans		1,659		—		—		—		1,659
Total loans	$	417,340	$	75,736	$	51,744	$	130	$	544,950

21

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

In accordance with ASU 2011-02, the Company assesses all loan modifications to determine whether they are considered troubled debt restructurings (TDRs) under the guidance. During the three months ended September 30, 2012, the Company modified two loans that were considered to be TDRs. The Company extended the terms for one of these loans and lowered the interest rate for one of these loans. The following table presents information relating to loans modified as TDRs during the three months ended September 30, 2012 (dollars in thousands):

	Three months ended September 30, 2012
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Mortgage loans on real estate:
Residential 1-4 family		1	$	294	$	294
Commercial		1		2,979		2,777
Total real estate loans		2		3,273		3,071
Total loans		2	$	3,273	$	3,071

During the nine months ended September 30, 2012, the Company modified seven loans that were considered to be TDRs. The Company extended the terms for three of these loans and lowered the interest rate for six of these loans. The following table presents information relating to loans modified as TDRs during the nine months ended September 30, 2012 (dollars in thousands):

	Nine months ended September 30, 2012
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Mortgage loans on real estate:
Residential 1-4 family		3	$	765	$	765
Commercial		2		4,150		3,948
Construction and land development		1		675		675
Total real estate loans		6		5,590		5,388
Commercial loans		1		74		74
Total loans		7	$	5,664	$	5,462

No loans were modified during the three months ended September 30, 2011. During the nine months ended September 30, 2011, the Company modified six loans that were considered to be TDRs. The Company extended the terms for five of these loans and lowered the interest rates for six of these loans. The following table presents information relating to loans modified as TDRs during the nine months ended September 30, 2011 (dollars in thousands):

	Nine months ended September 30, 2011
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Mortgage loans on real estate:
Residential 1-4 family		3	$	722	$	679
Commercial		2		5,518		4,132
Total real estate loans		5		6,240		4,811
Commercial loans		1		560		531
Total loans		6	$	6,800	$	5,342

22

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

A loan is considered to be in default if it is 90 days or more past due. There were two TDRs that resulted in default during each of the three and nine months ended September 30, 2012 that had been restructured during the previous 12 months. The following table presents information relating to TDRs that resulted in default during the three and nine months ended September 30, 2012 (dollars in thousands):

	Three and nine months ended September 30, 2012
	Number of Contracts		Recorded Investment
Mortgage loans on real estate:
Construction and land development		1	$	668
Total real estate loans		1		668
Commercial loans		1		74
Total loans		2	$	742

There was one TDR that resulted in default during the three months ended September 30, 2011 that had been restructured during the previous 12 months. This commercial real estate loan had a recorded investment of $1.4 million at September 30, 2011.

There were four TDRs that resulted in default during the nine months ended September 30, 2011 that had been restructured during the previous 12 months. The following table presents information relating to TDRs that resulted in default during the nine months ended September 30, 2011 (dollars in thousands):

	Nine months ended September 30, 2011
	Number of Contracts		Recorded Investment
Mortgage loans on real estate:
Residential 1-4 family		2	$	406
Commercial		1		1,416
Total real estate loans		3		1,822
Commercial loans		1		525
Total loans		4	$	2,347

In the determination of the allowance for loan losses, management considers TDRs and subsequent defaults in these restructures by reviewing for impairment in accordance with ASC 310-10-35, Receivables, Subsequent Measurement.

At September 30, 2012, the Company had 1-4 family mortgages in the amount of $157.4 million pledged as collateral to the Federal Home Loan Bank for a total borrowing capacity of $101.4 million.

4. LOANS COVERED BY FDIC SHARED LOSS AGREEMENT (COVERED LOANS)

On January 30, 2009, the Company entered into a Purchase and Assumption Agreement with the Federal Deposit Insurance Corporation (FDIC) to assume all of the deposits and certain other liabilities and acquire substantially all assets of Suburban Federal Savings Bank (SFSB).  The Company is applying the provisions of FASB ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, to all loans acquired in the SFSB transaction (the “covered loans”). Of the total $198.3 million in loans acquired, $49.1 million met the criteria of ASC 310-30. These loans, consisting mainly of construction loans, were deemed impaired at the acquisition date. The remaining $149.1 million of loans acquired, comprised mainly of residential 1-4 family, were analogized to meet the criteria of ASC 310-30. Analysis of this portfolio revealed that SFSB utilized weak underwriting and documentation standards, which led the Company to believe that significant losses were probable given the economic environment at the time.

23

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

As of September 30, 2012 and December 31, 2011, the outstanding contractual balance of the covered loans was $143.5 million and $160.0 million, respectively. The carrying amount, by loan type, as of these dates is as follows (dollars in thousands):

	September 30, 2012					December 31, 2011
	Amount		% of Covered Loans			Amount		% of Covered Loans
Mortgage loans on real estate:
Residential 1-4 family	$	78,133		87.67	%	$	84,734		86.85	%
Commercial		2,030		2.28			2,170		2.22
Construction and land development		3,328		3.73			4,260		4.38
Second mortgages		5,148		5.78			5,894		6.04
Multifamily		308		0.35			316		0.32
Agriculture		172		0.18			179		0.18
Total real estate loans		89,119		99.99			97,553		99.99
Commercial loans		—		—			—		—
Consumer installment loans		2		0.01			8		0.01
All other loans		—		—			—		—
Total covered loans	$	89,121		100.00	%	$	97,561		100.00	%

Activity in the allowance for loan losses on covered loans for the nine months ended September 30, 2012 and the year ended December 31, 2011 was comprised of the following (dollars in thousands):

	December 31, 2011		Provision Allocation			Charge offs			Recoveries		September 30, 2012
Mortgage loans on real estate:
Residential 1-4 family	$	473	$	(274	)	$	(12	)	$	9	$	196
Commercial		303		(43	)		—			—		260
Construction and land development		—		4			(22	)		18		—
Second mortgages		—		—			—			—		—
Multifamily		—		63			(315	)		252		—
Agriculture		—		—			—			—		—
Total real estate loans		776		(250	)		(349	)		279		456
Commercial loans		—		—			—			—		—
Consumer installment loans		—		—			—			—		—
All other loans		—		—			—			—		—
Total covered loans	$	776	$	(250	)	$	(349	)	$	279	$	456

24

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

	December 31, 2010		Provision Allocation		Charge offs			Recoveries		December 31, 2011
Mortgage loans on real estate:
Residential 1-4 family	$	526	$	—	$	(53	)	$	—	$	473
Commercial		303		—		—			—		303
Construction and land development		—		—		—			—		—
Second mortgages		—		—		—			—		—
Multifamily		—		—		—			—		—
Agriculture		—		—		—			—		—
Total real estate loans		829		—		(53	)		—		776
Commercial loans		—		—		—			—		—
Consumer installment loans		—		—		—			—		—
All other loans		—		—		—			—		—
Total covered loans	$	829	$	—	$	(53	)	$	—	$	776

The following table presents information on the covered loans collectively evaluated for impairment in the allowance for loan losses at September 30, 2012 and December 31, 2011 (dollars in thousands):

	September 30, 2012				December 31, 2011
	Allowance for loan losses		Recorded investment in loans		Allowance for loan losses		Recorded investment in loans
Mortgage loans on real estate:
Residential 1-4 family	$	196	$	78,133	$	473	$	84,734
Commercial		260		2,030		303		2,170
Construction and land development		—		3,328		—		4,260
Second mortgages		—		5,148		—		5,894
Multifamily		—		308		—		316
Agriculture		—		172		—		179
Total real estate loans		456		89,119		776		97,553
Commercial loans		—		—		—		—
Consumer installment loans		—		2		—		8
All other loans		—		—		—		—