10-Q

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		—		—		—		—
Total covered loans	$	456	$	89,121	$	776	$	97,561

The change in the accretable yield balance for the nine months ended September 30, 2012 and the year ended December 31, 2011 is as follows (dollars in thousands):

Balance, January 1, 2011	$	75,718
Accretion		(17,525	)
Reclassification to Non-accretable Yield		(1,883	)
Balance, December 31, 2011		56,310
Accretion		(11,211	)
Reclassification from Non-accretable Yield		10,069
Balance, September 30, 2012	$	55,168

The covered loans are not classified as nonperforming assets as of September 30, 2012, as the loans are accounted for on a pooled basis, and interest income, through accretion of the difference between the carrying amount of the loans and the expected cash flows, is being recognized on all purchased loans.

25

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

5. FDIC AGREEMENTS AND FDIC INDEMNIFICATION ASSET

On January 30, 2009, the Company entered into a Purchase and Assumption Agreement with the FDIC to assume all of the deposits and certain other liabilities and acquire substantially all assets of SFSB. Under the shared loss agreements that are part of that agreement, the FDIC will reimburse the Bank for 80% of losses arising from covered loans and foreclosed real estate assets, on the first $118 million in losses on such covered loans and foreclosed real estate assets, and for 95% of losses on covered loans and foreclosed real estate assets thereafter. Under the shared loss agreements, a “loss” on a covered loan or foreclosed real estate is defined generally as a realized loss incurred through a permitted disposition, foreclosure, short-sale or restructuring of the covered loan or foreclosed real estate. The reimbursements for losses on single family one-to-four residential mortgage loans are to be made quarterly through January 2014, and the reimbursements for losses on other covered assets are to be made quarterly through January 2019. Prior to the third quarter of 2011, reimbursements for losses on single family one-to-four mortgage loans were made monthly. The shared loss agreements provide for indemnification from the first dollar of losses without any threshold requirement. The reimbursable losses from the FDIC are based on the book value of the relevant loan as determined by the FDIC at the date of the transaction, January 30, 2009. New loans made after that date are not covered by the shared loss agreements. The fair value of the shared loss agreements is detailed below.

The Company is accounting for the shared loss agreements as an indemnification asset pursuant to the guidance in FASB ASC 805, Business Combinations. The FDIC indemnification asset is required to be measured in the same manner as the asset or liability to which it relates. The FDIC indemnification asset is measured separately from the covered loans and other real estate owned assets (OREO) because it is not contractually embedded in the covered loan and other real estate owned assets and is not transferable should the Company choose to dispose of them. Fair value was estimated using projected cash flows available for loss sharing based on the credit adjustments estimated for each loan pool and other real estate owned and the loss sharing percentages outlined in the shared loss agreements with the FDIC. These cash flows were discounted to reflect the uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC.

Because the acquired loans are subject to shared loss agreements and a corresponding indemnification asset exists to represent the value of expected payments from the FDIC, increases and decreases in loan accretable yield due to changing loss expectations will also have an impact to the valuation of the FDIC indemnification asset. Improvement in loss expectations will typically increase loan accretable yield and decrease the value of the FDIC indemnification asset and, in some instances, result in an amortizable premium on the FDIC indemnification asset. Increases in loss expectations will typically be recognized as impairment in the current period through allowance for loan losses, resulting in additional noninterest income for the amount of the increase in the FDIC indemnification asset.

In addition to the premium amortization, the balance of the FDIC indemnification asset is affected by expected payments from the FDIC. Under the terms of the shared loss agreements, the FDIC will reimburse the Company for loss events incurred related to the covered loan portfolio. These events include such things as future writedowns due to decreases in the fair market value of OREO, net loan charge offs and recoveries, and net gains and losses on OREO sales.

26

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

The following table presents the balances of the FDIC indemnification asset at September 30, 2012 and December 31, 2011 (dollars in thousands):

	Anticipated Expected Losses			Estimated Loss Sharing Value			Amortizable Premium (Discount) at Present Value			FDIC Indemnification Asset Total
January 1, 2011		46,250			37,000			21,369			58,369
Increases:
Writedown of OREO property to FMV		1,902			1,522						1,522
Decreases:
Net amortization of premium								(10,364	)		(10,364	)
Reclassifications to FDIC receivable:
Net loan charge offs and recoveries		(3,319	)		(2,655	)					(2,655	)
OREO sales		(2,764	)		(2,211	)					(2,211	)
Reimbursements requested from FDIC		(2,525	)		(2,020	)					(2,020	)
Reforecasted Change in Anticipated Expected Losses		(10,831	)		(8,665	)		8,665			—
December 31, 2011	$	28,713		$	22,971		$	19,670		$	42,641
Increases:
Writedown of OREO property to FMV		535			428						428
Decreases:
Net amortization of premium								(5,444	)		(5,444	)
Reclassifications to FDIC receivable:
Net loan charge offs and recoveries		(975	)		(780	)					(780	)
OREO sales		(540	)		(432	)					(432	)
Reimbursements requested from FDIC		(277	)		(222	)					(222	)
Reforecasted Change in Anticipated Expected Losses		(3,902	)		(3,122	)		3,122			—
September 30, 2012	$	23,554		$	18,843		$	17,348		$	36,191

6. OTHER INTANGIBLES

Core deposit intangible assets are amortized over the period of expected benefit, ranging from 2.6 to 9 years. Core deposit intangibles are recognized, amortized and evaluated for impairment as required by FASB ASC 350, Intangibles. As a result of the mergers with TransCommunity Financial Corporation (TFC), and BOE Financial Services of Virginia, Inc. (BOE) on May 31, 2008, the Company recorded $15.0 million in core deposit intangible assets. Core deposit intangibles resulting from the Georgia and Maryland transactions, in 2008 and 2009, respectively, equaled $3.2 million and $2.2 million, respectively, and will be amortized over approximately 9 years.

Other intangible assets are presented in the following table (dollars in thousands):

	Core Deposit Intangibles
Balance, January 1, 2011	$	14,819
Amortization		(2,261	)
Balance, December 31, 2011		12,558
Amortization		(1,695	)
Balance, September 30, 2012	$	10,863

27

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

7. DEPOSITS

The following table provides interest-bearing deposit information, by type, as of September 30, 2012 and December 31, 2011 (dollars in thousands):

	September 30, 2012		December 31, 2011
NOW	$	117,120	$	128,758
MMDA		113,288		115,397
Savings		76,499		69,872
Time deposits less than $100,000		292,374		326,383
Time deposits $100,000 and over		263,087		228,128
Total interest-bearing deposits	$	862,368	$	868,538

8. ACCUMULATED OTHER COMPREHENSIVE INCOME

The following tables present activity in accumulated other comprehensive income for the three and nine months ended September 30, 2012 and 2011 (dollars in thousands):

	Three months ended September 30, 2012
	Unrealized Gain/(Loss) on Securities			Defined Benefit Pension Plan			Total Other Comprehensive Income (Loss)
Beginning balance	$	3,839		$	(1,038	)	$	2,801
Current period other comprehensive income loss		(753	)		—			(753	)
Ending balance	$	3,086		$	(1,038	)	$	2,048
	Three months ended September 30, 2011
	Unrealized Gain/(Loss) on Securities			Defined Benefit Pension Plan			Total Other Comprehensive Income (Loss)
Beginning balance	$	2,296		$	—		$	2,296
Current period other comprehensive income		227			—			227
Ending balance	$	2,523		$	—		$	2,523
	Nine months ended September 30, 2012
	Unrealized Gain/(Loss) on Securities			Defined Benefit Pension Plan			Total Other Comprehensive Income (Loss)
Beginning balance	$	3,257		$	(1,038	)	$	2,219
Current period other comprehensive income loss		(171	)		—			(171	)
Ending balance	$	3,086		$	(1,038	)	$	2,048

28

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

	Nine months ended September 30, 2011
	Unrealized Gain/Loss on Securities			Defined Benefit Pension Plan		Total Other Comprehensive Income
Beginning balance	$	(145	)	$	—	$	(145	)
Current period other comprehensive income		2,668			—		2,668
Ending balance	$	2,523		$	—	$	2,523

9. FAIR VALUES OF ASSETS AND LIABILITIES

FASB ASC 820, Fair Value Measurements and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs and also establishes a fair value hierarchy that prioritizes the valuation inputs into three broad levels. The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:

• Level 1—Valuation is based upon quoted prices for identical instruments traded in active markets.

• Level 2—Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3—Valuation is determined using model-based techniques with significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of third party pricing services, option pricing models, discounted cash flow models and similar techniques.

FASB ASC 825, Financial Instruments, allows an entity the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. The Company has not made any material ASC 825 elections as of September 30, 2012.

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

The Company utilizes fair value measurements to record adjustments to certain assets to determine fair value disclosures. Securities available for sale and loans held for sale are recorded at fair value on a recurring basis. The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis (dollars in thousands).

	September 30, 2012
	Total		Level 1		Level 2		Level 3
Investment securities available for sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	110,899	$	105,743	$	5,156	$	—
U.S. Gov’t sponsored agencies		509		—		509		—
State, county, and municipal		105,738		657		105,081		—
Corporate and other bonds		6,608		264		6,344		—
Mortgage backed – U.S. Gov’t agencies		17,236		—		17,236		—
Mortgage backed – U.S. Gov’t sponsored agencies		15,404		—		15,404		—
Total investment securities available for sale		256,394		106,664		149,730		—
Loans held for resale		1,736		—		1,736		—
Total assets at fair value	$	258,130	$	106,664	$	151,466	$	—
Total liabilities at fair value	$	—	$	—	$	—	$	—

29

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

	December 31, 2011
	Total		Level 1		Level 2		Level 3
Investment securities available for sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	7,414	$	2,099	$	5,315	$	—
U.S. Gov’t sponsored agencies		1,033		—		1,033		—
State, county and municipal		62,043		1,821		60,222		—
Corporate and other bonds		4,631		—		4,631		—
Mortgage backed – U.S. Gov’t agencies		74,093		—		74,093		—
Mortgage backed – U.S. Gov’t sponsored agencies		83,550		—		83,550		—
Total investment securities available for sale		232,764		3,920		228,844		—
Loans held for resale		580		—		580		—
Total assets at fair value	$	233,344	$	3,920	$	229,424	$	—
Total liabilities at fair value	$	—	$	—	$	—	$	—

Investment securities available for sale

Investment securities available for sale are recorded at fair value each reporting period. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions.

The Company utilizes a third party vendor to provide fair value data for purposes of determining the fair value of its available for sale securities portfolio. The third party vendor uses a reputable pricing company for security market data. The third party vendor has controls and edits in place for month-to-month market checks and zero pricing, and a Statement on Standards for Attestation Engagements No. 16 report is obtained from the third party vendor on an annual basis. The Company makes no adjustments to the pricing service data received for its securities available for sale.

Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. Securities classified as Level 3 include asset-backed securities in less liquid markets.

Loans held for resale

The carrying amounts of loans held for resale approximate fair value.

30

COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The Company is also required to measure and recognize certain other financial assets at fair value on a nonrecurring basis on the consolidated balance sheet. For assets measured at fair value on a nonrecurring basis in 2012 and still held on the consolidated balance sheet at September 30, 2012, the following table provides the fair value measures by level of valuation assumptions used for those assets.

	September 30, 2012
	Total		Level 1		Level 2		Level 3
Impaired loans, non-covered	$	17,358	$	—	$	2,394	$	14,964
Other real estate owned (OREO), non-covered		11,896		—		—		11,896
Other real estate owned (OREO), covered		2,943		—		106		2,837
Total assets at fair value	$	32,197	$	—	$	2,500	$	29,697
Total liabilities at fair value	$	—	$	—	$	—	$	—

	December 31, 2011
	Total		Level 1		Level 2		Level 3
Impaired loans, non-covered	$	22,082	$	308	$	8,857	$	12,917
Other real estate owned (OREO), non-covered		10,252		—		—		10,252
Other real estate owned (OREO), covered		5,764		—		533		5,231
Total assets at fair value	$	38,098	$	308	$	9,390	$	28,400
Total liabilities at fair value	$	—	$	—	$	—	$	—

Impaired loans, non-covered

Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures the impairment in accordance with FASB ASC 310, Receivables. The fair value of impaired loans is estimated using one of several methods, including collateral value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceeds the recorded investments in such loans. At September 30, 2012 and December 31, 2011, a majority of total impaired loans were evaluated based on the fair value of the collateral. The Company frequently obtains appraisals prepared by external professional appraisers for classified loans greater than $250,000 when the most recent appraisal is greater than 12 months old. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the impaired loan within Level 2.

The Company may also identify collateral deterioration based on current market sales data, including price and absorption, as well as input from real estate sales professionals and developers, county or city tax assessments, market data and on-site inspections by Company personnel. Internally prepared estimates generally result from current market data and actual sales data related to the Company’s collateral or where the collateral is located. When management determines that the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the impaired loan as nonrecurring Level 3. In instances where an appraisal received subsequent to an internally prepared estimate reflects a higher collateral value, management does not revise the carrying amount. Impaired loans can also be evaluated for impairment using the present value of expected future cash flows discounted at the loan’s effective interest rate. The measurement of impaired loans using future cash flows discounted at the loan’s effective interest rate rather than the market rate of interest rate is not a fair value measurement and is therefore excluded from fair value disclosure requirements. Reviews of classified loans are performed by management on a quarterly basis.

Other real estate owned, covered and non-covered

Other real estate owned (OREO) assets are adjusted to fair value less estimated selling costs upon transfer of the related loans to OREO property. Subsequent to the transfer, valuations are periodically performed by management and the assets are carried at the lower of carrying value or fair value less estimated selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value,

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COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

the Company records the foreclosed asset within Level 2. When an appraised value is not available or management determines that the fair value of the collateral is further impaired below the appraised value due to such things as absorption rates and market conditions, the Company records the foreclosed asset within Level 3 of the fair value hierarchy.

Fair Value of Financial Instruments

FASB ASC 825, Financial Instruments, requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring or nonrecurring basis. FASB ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

The following reflects the fair value of financial instruments, whether or not recognized on the consolidated balance sheet, at fair value measures by level of valuation assumptions used for those assets. This table excludes financial instruments for which the carrying value approximates fair value.

	September 30, 2012
(dollars in thousands)	Carrying Value		Estimated  Fair Value		Level 1		Level 2		Level 3
Financial assets:
Securities held to maturity	$	48,689	$	52,013	$	—	$	52,013	$	—
Loans, non-covered		545,229		549,978		—		549,978		—
Loans, covered		88,665		100,464		—		—		100,464
FDIC indemnification asset		36,191		18,575		—		—		18,575
Financial liabilities:
Interest-bearing deposits		862,368		844,501		—		844,501		—
Borrowings		54,124		54,847		—		54,847		—
	December 31, 2011
(dollars in thousands)	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Securities held to maturity	$	64,422	$	68,585	$	—	$	68,585	$	—
Loans, non-covered		529,883		522,960		—		522,960		—
Loans, covered		96,785		99,008		—		—		99,008
FDIC indemnification asset		42,641		22,892		—		—		22,892
Financial liabilities:
Interest-bearing deposits		868,538		870,909		—		870,909		—
Borrowings		41,124		45,002		—		45,002		—

The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying balance sheets at amounts other than fair value as of September 30, 2012. The Company applied the provisions of ASC 820 to the fair value measurements of financial instruments not recognized on the consolidated balance sheet at fair value. The provisions requiring the Company to maximize the use of observable inputs and to measure fair value using a notion of exit price were factored into the Company’s selection of inputs into its established valuation techniques.

Financial Assets

Cash and cash equivalents

The carrying amounts of cash and due from banks, interest-bearing bank deposits, and federal funds sold approximate fair value.

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COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

Securities held for investment

For securities held for investment, fair values are based on quoted market prices or dealer quotes.

Restricted securities

The carrying value of restricted securities approximates their fair value based on the redemption provisions of the respective issuer.

Loans held for resale

The carrying amounts of loans held for resale approximate fair value.

Loans not covered by FDIC shared loss agreement (non-covered loans)

For certain homogeneous categories of loans, such as some residential mortgages and other consumer loans, fair value is estimated using the quoted market prices for securities backed by similar loans, adjusted for differences in loan characteristics. The fair value of other types of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.

Loans covered by FDIC shared loss agreement (covered loans)

Fair values for covered loans are based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, term of loan and whether or not the loans are amortizing. Loans were pooled together according to similar characteristics and were treated in the aggregate when applying various valuation techniques. The discount rates used for loans are based on the rates used at acquisition (which were based on market rates for new originations of comparable loans) adjusted for any material changes in interest rates since acquisition. Increases in cash flow expectations since acquisition resulted in estimated fair value being higher than carrying value. The increase in cash flows is also reflected in a transfer from unaccretable yield to accretable yield as disclosed in Note 4.

FDIC indemnification asset

Loss sharing assets are measured separately from the related covered assets as they are not contractually embedded in the covered assets and are not transferable with the assets should the Company choose to dispose of them. Fair value is estimated using projected cash flows related to the obligations under the shared loss agreements based on the expected reimbursements for losses and the applicable loss sharing percentages. These expected reimbursements do not include reimbursable amounts related to future covered expenditures. These cash flows were discounted to reflect the uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC. A reduction in loss expectations has resulted in the estimated fair value of the FDIC indemnification asset being lower than its carrying value. This creates a premium that is amortized over the life of the asset and is reflected in Note 5.

Accrued interest receivable

The carrying amounts of accrued interest receivable approximate fair value.

Financial Liabilities

Noninterest-bearing deposits

The carrying amount of noninterest-bearing deposits approximates fair value.

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COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

Interest-bearing deposits

The fair value of NOW accounts, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities.

Long-term borrowings

The fair values of the Company’s long-term borrowings, such as FHLB advances, are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements.

Accrued interest payable

The carrying amounts of accrued interest payable approximate fair value.

Off-balance sheet financial instruments

The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of stand-by letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. The Company’s off-balance sheet commitments are funded at current market rates at the date they are drawn upon. It is management’s opinion that the fair value of these commitments would approximate their carrying value, if drawn upon.

The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change, and that change may be either favorable or unfavorable. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk.

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COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

10. EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed using the weighted average number of common shares outstanding during the period, including the effect of all potentially dilutive common shares outstanding attributable to stock instruments.

(dollars and shares in thousands, except per share data)	Net Income (Loss) (Numerator)			Weighted Average Shares (Denominator)		Per Common Share Amount
For the three months ended September 30, 2012
Shares issued					21,644
Unissued vested restricted stock					7
Basic EPS	$	1,533			21,651	$	0.07
Effect of dilutive stock awards		—			92		—
Diluted EPS	$	1,533			21,743	$	0.07
For the three months ended September 30, 2011
Basic EPS	$	1,150			21,628	$	0.05
Effect of dilutive stock awards		—			—		—
Diluted EPS	$	1,150			21,628	$	0.05
For the nine months ended September 30, 2012
Shares issued					21,633
Unissued vested restricted stock					7
Basic EPS	$	3,181			21,640	$	0.15
Effect of dilutive stock awards		—			51		—
Diluted EPS	$	3,181			21,691	$	0.15
For the nine months ended September 30, 2011
Basic EPS	$	(70	)		21,544	$	(0.00	)
Effect of dilutive stock awards		—			—		—
Diluted EPS	$	(70	)		21,544	$	(0.00	)

Excluded from the computation of diluted earnings per share were 1.3 million and 1.1 million common shares issuable under awards, options or warrants, during the three and nine months ended September 30, 2012 and 2011 respectively, because their inclusion would be anti-dilutive.

In December 2008, the Company issued 17,680 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A to the United States Department of Treasury in connection with the Company’s participation in the Treasury’s TARP Capital Purchase Program. Cumulative dividends on the Series A Preferred Stock are payable at 5% per annum through December 19, 2013, and at a rate of 9% per annum thereafter. The Company may defer dividend payments, but the dividend is a cumulative dividend that accrues for payment in the future. Deferred dividends also accrue interest at the same rate as the dividend. The failure to pay dividends for six dividend periods triggers the right for the holder of the Series A Preferred Stock to appoint two directors to the Company’s board.

As of September 30, 2012, the Company is current in its payment of dividends, each in the amount of $221,000, with respect to the Series A Preferred Stock.

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COMMUNITY BANKERS TRUST CORPORATION

Notes to Unaudited Consolidated Financial Statements

11. DEFINED BENEFIT PLAN

On May 31, 2008, the Company adopted the Bank of Essex noncontributory defined benefit pension plan for all full-time pre-merger Bank employees over 21 years of age. Benefits are generally based upon years of service and the employees’ compensation. The Company funds pension costs in accordance with the funding provisions of the Employee Retirement Income Security Act. The Company has frozen the plan benefits for all participants effective December 31, 2010, resulting in a curtailment gain included in pension expense of $210,000 in 2010.

Components of Net Periodic Benefit Cost

	Three months ended						Nine months ended
(dollars in thousands)	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Service cost	$	—		$	—		$	—		$	—
Interest cost		62			65			187			195
Expected return on plan assets		(102	)		(75	)		(306	)		(225	)
Recognized net actuarial (gain) loss		16			—			49			—
Net periodic benefit cost	$	(24	)	$	(10	)	$	(70	)	$	(30	)

At September 30, 2012, employer contributions totalled $2.0 million for the plan year. The Company is considering terminating the pension plan in the future. No determination has been made and the Company has not determined the financial impact of the termination of the plan.

12. CONTINGENCIES

See the Annual Report on Form 10-K for the period ended December 31, 2011 for information with respect to transaction-based bonus awards that the Company approved for the Company’s then chief strategic officer in the first quarter of 2010 and paid in the first and second quarters of 2010. There have been no developments to the issues disclosed in the 2010 Form 10-K and, as of November 14, 2012, these issues remain open.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of the financial condition at September 30, 2012 and results of operations of Community Bankers Trust Corporation (the “Company”) for the three and nine months ended September 30, 2012 should be read in conjunction with the Company’s consolidated financial statements and the accompanying notes to consolidated financial statements included in this report and in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

OVERVIEW

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.

The Company generates a significant amount of its income from the net interest income earned by the Bank. Net interest income is the difference between interest income and interest expense. Interest income depends on the amount of interest-earning assets outstanding during the period and the interest rates earned thereon. The Company’s cost of funds is a function of the average amount of interest-bearing deposits and borrowed money outstanding during the period and the interest rates paid thereon. The quality of the assets further influences the amount of interest income lost on nonaccrual loans and the amount of additions to the allowance for loan losses. Additionally, the Bank earns noninterest income from service charges on deposit accounts and other fee or commission-based services and products. Other sources of noninterest income can include gains or losses on securities transactions, gains from loan sales, transactions involving bank-owned property, and income from Bank Owned Life Insurance (“BOLI”) policies. The Company’s income is offset by noninterest expense, which consists of salaries and benefits, occupancy and equipment costs, professional fees, the amortization of intangible assets and other operational expenses. The provision for loan losses and income taxes materially affect income.

CAUTION ABOUT FORWARD-LOOKING STATEMENTS

The Company makes certain forward-looking statements in this report that are subject to risks and uncertainties. These forward-looking statements include statements regarding our profitability, liquidity, allowance for loan losses, interest rate sensitivity, market risk, future strategy, and financial and other goals. These forward-looking statements are generally identified by phrases such as “the Company expects,” “the Company believes” or words of similar import.

These forward-looking statements are subject to significant uncertainties because they are based upon or are affected by factors, including, without limitation, the effects of and changes in the following:

• the quality or composition of the Company’s loan or investment portfolios, including collateral values and the repayment abilities of borrowers and issuers;

• assumptions that underlie the Company’s allowance for loan losses;

• general economic and market conditions, either nationally or in the Company’s market areas;

• the ability of the Company to comply with regulatory actions, and the costs associated with doing so;

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• the interest rate environment;

• competitive pressures among banks and financial institutions or from companies outside the banking industry;

• real estate values;

• the demand for deposit, loan, and investment products and other financial services;

• the demand, development and acceptance of new products and services;

• the Company’s compliance with, and the timing of future reimbursements from the FDIC to the Company under, the shared loss agreements;

• assumptions and estimates that underlie the accounting for loan pools under the shared loss agreements;

• consumer profiles and spending and savings habits;

• the securities and credit markets;

• costs associated with the integration of banking and other internal operations;

• 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.

These factors and additional risks and uncertainties are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 and other reports filed from time to time by the Company with the Securities and Exchange Commission.

In addition, the Company’s financial results for the fourth quarter of 2012 may be indirectly affected by Hurricane Sandy, which occurred in October 2012. While there was no direct impact to the Company’s branches or customers, the New Jersey data center of the Company’s third-party processor, a provider of integrated data processing systems to more than 1,300 banks, was evacuated and all processing was moved to the processor’s back-up site. This transition, and the processor’s subsequent recovery activity, resulted in significant delays in certain transaction postings for the Company’s customers. The Company reacted to this situation immediately and worked diligently with the third-party processor to correct the operational issues that were presented. Nevertheless, this situation could ultimately affect the Company’s results of operations, due to the waiver of certain service charges that may have been otherwise realized during the delay period, customer dissatisfaction and similar concerns and other factors. The Company is currently unable to estimate the effect, if any, that this situation will ultimately have on its financial results.

Although the Company believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.

CRITICAL ACCOUNTING POLICIES

The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). 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. For example, 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.

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The following is a summary of the Company’s critical accounting policies that are highly dependent on estimates, assumptions and judgments.

Allowance for Loan Losses on Non-covered Loans

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance is an amount that management believes is appropriate to absorb estimated losses relating to specifically identified loans, as well as probable credit losses inherent in the balance of the loan portfolio, based on an evaluation of the collectability of existing loans and prior loss experience. This quarterly evaluation also takes into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, and current economic conditions that may affect the borrower’s ability to pay. This evaluation does not include the effects of expected losses on specific loans or groups of loans that are related to future events or expected changes in economic conditions. While management uses the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses and may require the Bank to make additions to the allowance based on their judgment about information available to them at the time of their examinations.

The allowance consists of specific and general components. For loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors.

A loan is considered impaired when, based on current information and events, management believes that it is more likely than not that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, availability of current financial information, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of the expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment disclosures.

Allowance for Loan Losses on Covered Loans

The assets acquired in the Suburban Federal Savings Bank (SFSB) transaction are covered by shared loss agreements with the FDIC. Under the shared loss agreements, the FDIC will reimburse the Bank for 80% of losses arising from covered loans and foreclosed real estate assets, on the first $118 million in losses of such covered loans and foreclosed real estate assets, and for 95% of losses on covered loans and foreclosed real estate assets thereafter. Under the shared loss agreements, a “loss” on a covered loan or foreclosed real estate is defined generally as a realized loss incurred through a permitted disposition, foreclosure, short-sale or restructuring of the covered loan or foreclosed real estate. The reimbursements for losses on single family one-to-four residential mortgage loans are to be made quarterly through January 2014, and the reimbursements for losses on other covered assets are to be made quarterly through January 2019. Prior to the third quarter of 2011, reimbursements for losses on single family one–to-four mortgage loans were made monthly. The shared loss agreements provide for indemnification from the first dollar of losses without any threshold requirement. The reimbursable losses from the FDIC are based on the book value of the relevant loan as determined by the FDIC at the date of the transaction, January 30, 2009. New loans made after that date are not covered by the shared loss agreements.

39

The Company evaluated the acquired covered loans and has elected to account for them under FASB ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (formerly SOP 03-3).

The covered loans are subject to the credit review standards described above for non-covered loans. If and when credit deterioration occurs subsequent to the date that the covered loans were acquired, a provision for credit loss for covered loans will be charged to earnings for the full amount without regard to the FDIC shared loss agreements. The Company makes an estimate of the total cash flows it expects to collect from a pool of covered loans, which includes undiscounted expected principal and interest. Over the life of the loan or pool, the Company continues to estimate cash flows expected to be collected. Subsequent decreases in cash flows expected to be collected over the life of the pool are recognized as impairments in the current period through allowance for loan losses. Subsequent increases in expected cash flows are first used to reverse any existing valuation allowance for that loan or pool. Any remaining increase in cash flows expected to be collected is recognized as an adjustment to the yield over the remaining life of the pool.

Accounting for Certain Loans or Debt Securities Acquired in a Transfer

FASB ASC 310, Receivables, requires acquired loans to be recorded at fair value and prohibits carrying over valuation allowances in the initial accounting for acquired impaired loans. Loans carried at fair value, mortgage loans held for sale, and loans to borrowers in good standing under revolving credit arrangements are excluded from the scope of FASB ASC 310, which limits the yield that may be accreted to the excess of the undiscounted expected cash flows over the investor’s initial investment in the loan. The excess of the contractual cash flows over expected cash flows may not be recognized as an adjustment of yield. Subsequent increases in cash flows to be collected are recognized prospectively through an adjustment of the loan’s yield over its remaining life. Decreases in expected cash flows are recognized as impairments through allowance for loan losses.

The Company’s acquired loans from the SFSB transaction (the “covered loans”), subject to FASB ASC Topic 805, Business Combinations (formerly SFAS 141(R)), are recorded at fair value and no separate valuation allowance was recorded at the date of acquisition. FASB ASC 310-30, applies to loans acquired in a transfer with evidence of deterioration of credit quality for which it is probable, at acquisition, that the investor will be unable to collect all contractually required payments receivable. The Company is applying the provisions of FASB ASC 310-30 to all loans acquired in the SFSB transaction. The Company has grouped loans together based on common risk characteristics including product type, delinquency status and loan documentation requirements among others.

The Company has made an estimate of the total cash flows it expects to collect from each pool of loans, which includes undiscounted expected principal and interest. The excess of that amount over the fair value of the pool is referred to as accretable yield. Accretable yield is recognized as interest income on a constant yield basis over the life of the pool. The Company also determines each pool’s contractual principal and contractual interest payments. The excess of that amount over the total cash flows that it expects to collect from the pool is referred to as nonaccretable difference, which is not accreted into income. Judgmental prepayment assumptions are applied to both contractually required payments and cash flows expected to be collected at acquisition. Over the life of the loan or pool, the Company continues to estimate cash flows expected to be collected. Subsequent decreases in cash flows expected to be collected over the life of the pool are recognized as an impairment in the current period through the allowance for loan losses. Subsequent increases in expected or actual cash flows are first used to reverse any existing valuation allowance for that loan or pool. Any remaining increase in cash flows expected to be collected is recognized as an adjustment to the accretable yield with the amount of periodic accretion adjusted over the remaining life of the pool.

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FDIC Indemnification Asset

The Company is accounting for the shared loss agreements as an indemnification asset pursuant to the guidance in FASB ASC 805, Business Combinations. The FDIC indemnification asset is required to be measured in the same manner as the asset or liability to which it relates. The FDIC indemnification asset is measured separately from the covered loans and other real estate owned assets because it is not contractually embedded in the covered loan and other real estate owned assets and is not transferable should the Company choose to dispose of them. Fair value was estimated using projected cash flows available for loss sharing based on the credit adjustments estimated for each loan pool and other real estate owned and the loss sharing percentages outlined in the shared loss agreements. These cash flows were discounted to reflect the uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC.

Because the acquired loans are subject to shared loss agreements and a corresponding indemnification asset exists to represent the value of expected payments from the FDIC, increases and decreases in loan accretable yield due to changing loss expectations will also have an impact to the valuation of the FDIC indemnification asset. Improvement in loss expectations will typically increase loan accretable yield and decrease the value of the FDIC indemnification asset and, in some instances, result in an amortizable premium on the FDIC indemnification asset. Increases in loss expectations will typically be recognized as impairment in the current period through allowance for loan losses while resulting in additional noninterest income for the amount of the increase in the FDIC indemnification asset.

Other Intangible Assets

The Company is accounting for other intangible assets in accordance with FASB ASC 350, Intangibles - Goodwill and Others. Under FASB ASC 350, acquired intangible assets (such as core deposit intangibles) are separately recognized if the benefit of the assets can be sold, transferred, licensed, rented, or exchanged, and amortized over their useful lives The costs of purchased deposit relationships and other intangible assets, based on independent valuation by a qualified third party, are being amortized over their estimated lives. The core deposit intangible is evaluated for impairment in accordance with FASB ASC 350.

Income Taxes

Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statement of operations. Under FASB ASC 740, Income Taxes, a valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. In management’s opinion, based on a three year taxable income projection, tax strategies which would result in potential securities gains and the effects of off-setting deferred tax liabilities, it is more likely than not that the deferred tax assets are realizable. Included in deferred tax assets are the tax benefits derived from net operating loss carryforwards totaling $3.4 million. Management expects to utilize all of these carryforward amounts prior to expiration.

The Company and its subsidiaries are subject to U. S. federal income tax as well as various state income taxes. All years from 2008 through 2011 are open to examination by the respective tax authorities.

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Other Real Estate Owned

Real estate acquired through, or in lieu of, loan foreclosure is held for sale and is initially recorded at the fair value at the date of foreclosure net of estimated disposal costs, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of the carrying amount or the fair value less costs to sell. Revenues and expenses from operations and changes in the valuation allowance are included in other operating expenses. Costs to bring a property to salable condition are capitalized up to the fair value of the property while costs to maintain a property in salable condition are expensed as incurred.

RESULTS OF OPERATIONS

Overview

Net income available to common stockholders was $1.5 million, or $0.07 per common share on a diluted basis, for the quarter ended September 30, 2012 compared with net income available to common stockholders of $1.2 million, or $0.05 per common share on a diluted basis, for the quarter ended September 30, 2011. Net income was driven by an increase in noninterest income of $814,000, or 123.0%, and a reduction in noninterest expenses of $643,000, or 7.4%, offset by a decrease in net interest income after provision for loan losses of $765,000, or 6.8%.

During the third quarter of 2012, the Company recorded no provision for loan losses. During the third quarter of 2011, the Company had no provision for loan losses.

For the nine months ended September 30, 2012, net income available to common stockholders was $3.2 million, compared with a net loss available to common stockholders of $70,000 for the nine months ended September 30, 2011. The $3.3 million improvement for the nine month comparison periods was the result of a reduction of $2.1 million in noninterest expense, a decrease of $1.7 million in interest expense, an increase of $1.9 million in noninterest income and a reduction of $748,000 in provision for loan losses.

Net Interest Income

The Company’s operating results depend primarily on its net interest income, which is the difference between interest income on interest-earning assets, including securities and loans, and interest expense incurred on interest-bearing liabilities, including deposits and other borrowed funds. Net interest income is affected by changes in the amount and mix of interest-earning assets and interest-bearing liabilities, referred to as a “volume change.” It is also affected by changes in yields earned on interest-earning assets and rates paid on interest-bearing deposits and other borrowed funds, referred to as a “rate change.”

Net interest income decreased $765,000, or 6.8%, from $11.3 million in the third quarter of 2011 to $10.5 million in the third quarter of 2012. This was primarily the result of a decrease in the Company’s interest spread, from 4.85% in the third quarter of 2011 to 4.25% in the third quarter of 2012. This decreased the Company’s net interest margin from 4.91% in the third quarter of 2011 to 4.32% for the same period in 2012.

Additionally, the cost of interest-bearing liabilities declined 32 basis points, or $635,000 from the third quarter 2011. The continued decline in interest expense is the result of higher than projected demand deposit balances, which has allowed management to reprice certificate of deposit maturities at lower rates, and the renewal of $22.0 million in maturing FHLB advances at lower rates.

Net interest income was $33.2 million for the nine months ended September 30, 2012, compared with $32.8 million for the nine months ended September 30, 2011. The increase in net interest income was $367,000. A decline of $1.6 million in the tax-equivalent yield on earning assets was virtually offset by a decline of $1.7 million in the cost of interest bearing liabilities, which resulted in the increase of 1.1% in net interest income. The yield on investment securities declined from 3.35% for the nine months ended September 30, 2011 to 3.03% for the nine months ended September 30, 2012, as management repositioned a large portion of the portfolio into variable rate securities. The tax equivalent net interest margin decreased from 4.73% in the first nine months of 2011 to 4.58% in the first nine months of 2012.

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The following tables set forth, for each category of interest-earning assets and interest-bearing liabilities, the average amounts outstanding, the interest earned or paid on such amounts, and the average rate earned or paid for the three months and nine months ended September 30, 2012 and 2011. The tables also set forth the average rate paid on total interest-bearing liabilities, and the net interest margin on average total interest-earning assets for the same periods. Except as indicated in the footnotes, no tax equivalent adjustments were made and all average balances are daily average balances. Any nonaccruing loans have been included in the tables as loans carrying a zero yield.

COMMUNITY BANKERS TRUST CORPORATION

NET INTEREST MARGIN ANALYSIS

AVERAGE BALANCE SHEETS

	Three months ended September 30, 2012								Three months ended September 30, 2011
(dollars in thousands)	Average Balance Sheet			Interest Income/ Expense		Average Rates Earned/Paid			Average Balance Sheet			Interest Income/ Expense		Average Rates Earned/Paid
ASSETS:
Loans, non-covered, including fees	$	556,355		$	7,710		5.54	%	$	498,201		$	7,314		5.87	%
FDIC covered loans, including fees		91,036			2,931		12.88			101,828			4,667		18.33
Total loans		647,391			10,641		6.57			600,029			11,981		7.99
Interest-bearing bank balances		16,057			9		0.23			48,462			28		0.23
Federal funds sold		842			—		0.10			4,000			1		0.13
Securities (taxable)		304,075			2,103		2.77			254,869			2,058		3.23
Securities (tax exempt)(1)		12,725			179		5.66			21,214			309		5.81
Total earning assets		981,090			12,932		5.27			928,574			14,377		6.19
Allowance for loan losses		(14,129	)							(17,237	)
Non-earning assets		140,065								156,669
Total assets	$	1,107,026							$	1,068,006
LIABILITIES AND STOCKHOLDERS’ EQUITY
Demand - interest-bearing	$	239,089		$	190		0.32		$	232,743		$	345		0.59
Savings		74,785			56		0.30			68,714			93		0.54
Time deposits		555,894			1,810		1.30			545,731			2,183		1.60
Total deposits		869,768			2,056		0.95			847,188			2,621		1.24
Federal funds purchased		1,872			3		0.72			54			—		0.61
FHLB and other borrowings		43,874			280		2.56			41,124			353		3.43
Total interest-bearing liabilities		915,514			2,339		1.02			888,366			2,974		1.34
Noninterest-bearing deposits		72,300								64,706
Other liabilities		4,623								5,049
Total liabilities		992,437								958,121
Stockholders’ equity		114,589								109,885
Total liabilities and stockholders’ equity	$	1,107,026							$	1,068,006
Net interest earnings				$	10,593							$	11,403
Net interest spread							4.25	%							4.85	%
Net interest margin							4.32	%							4.91	%

⁽¹⁾  Income and yields are reported on a tax equivalent basis assuming a federal tax rate of 34%.

43

COMMUNITY BANKERS TRUST CORPORATION

NET INTEREST MARGIN ANALYSIS

AVERAGE BALANCE SHEETS

	Nine months ended September 30, 2012								Nine months ended September 30, 2011
(dollars in thousands)	Average Balance Sheet			Interest Income/ Expense		Average Rates Earned/Paid			Average Balance Sheet			Interest Income/ Expense		Average Rates Earned/Paid
ASSETS:
Loans, non-covered, including fees	$	553,154		$	22,971		5.54	%	$	507,484		$	21,877		5.75	%
FDIC covered loans, including fees		93,192			11,211		16.04			106,672			13,325		16.65
Total loans		646,346			34,182		7.05			614,156			35,202		7.64
Interest-bearing bank balances		22,019			40		0.24			25,246			53		0.28
Federal funds sold		4,796			4		0.11			4,810			5		0.15
Securities (taxable)		285,140			6,219		2.91			262,209			6,055		3.08
Securities (tax exempt)(1)		12,400			537		5.78			29,452			1,278		5.79
Total earning assets		970,701			40,982		5.63			935,873			42,593		6.07
Allowance for loan losses		(14,694	)							(20,837	)
Non-earning assets		146,689								163,294
Total assets	$	1,102,696							$	1,078,330
LIABILITIES AND STOCKHOLDERS’ EQUITY
Demand - interest-bearing	$	237,756		$	671		0.38		$	233,806		$	1,039		0.59
Savings		73,003			198		0.36			66,792			265		0.53
Time deposits		558,079			5,781		1.38			559,427			7,008		1.67
Total deposits		868,838			6,650		1.02			860,025			8,312		1.29
Federal funds purchased		1,185			6		0.71			255			1		0.63
FHLB and other borrowings		42,047			982		3.12			41,124			1,051		3.41
Total interest-bearing liabilities		912,070			7,638		1.12			901,404			9,364		1.39
Noninterest-bearing deposits		71,148								63,489
Other liabilities		4,637								5,177
Total liabilities		987,855								970,070
Stockholders’ equity		114,841								108,260
Total liabilities and stockholders’ equity	$	1,102,696							$	1,078,330
Net interest earnings				$	33,344							$	33,229
Net interest spread							4.51	%							4.68	%
Net interest margin							4.58	%							4.73	%

⁽¹⁾  Income and yields are reported on a tax equivalent basis assuming a federal tax rate of 34%.

Provision for Loan Losses

Management actively monitors the Company’s asset quality and provides specific loss provisions when necessary. Provisions for loan losses are charged to income to bring the total allowance for loan losses to a level deemed appropriate by management of the Company based on such factors as historical credit loss experience, industry diversification of the commercial loan portfolio, the amount of nonperforming loans and related collateral, the volume growth and composition of the loan portfolio, current economic conditions that may affect the borrower’s ability to pay and the value of collateral, the evaluation of the loan portfolio through the internal loan review function and other relevant factors. See Allowance for Loan Losses on Non-covered Loans in the Critical Accounting Policies section above for further discussion.

Loans are charged-off against the allowance for loan losses when appropriate. Although management believes it uses the best information available to make determinations with respect to the provision for loan losses, future adjustments may be necessary if economic conditions differ from the assumptions used in making the initial determinations.

Management also actively monitors its covered loan portfolio for impairment and necessary loan loss provisions. Provisions for covered loans may be necessary due to a change in expected cash flows or an increase in expected losses within a pool of loans.

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There was no provision for loan losses for the quarters ended September 30, 2012 and September 30, 2011. The provision for loan losses was $750,000 for the nine months ended September 30, 2012 compared with $1.5 million for the nine months ended September 30, 2011.

The Company records a separate provision for loan losses for its non-covered loan portfolio and its FDIC covered loan portfolio. Neither portfolio had a provision for the third quarter of 2012 or 2011. The provision for loan losses on non-covered loans was $1.0 million for the nine months ended September 30, 2012 compared with $1.5 million for the nine months ended September 30, 2011. The provision for loan losses on covered loans was a $250,000 credit for the first nine months of 2012, which was the result of improvement in expected losses on the Company’s FDIC covered portfolio, which the Company recognized in the first quarter of the year. There was no provision for the covered loan portfolio for the nine months ended September 30, 2011.

Charged-off loans were $819,000 in the third quarter of 2012 compared with charged-off loans of $1.4 million in the third quarter of 2011. Recoveries were $1.6 million and $327,000 in the third quarters of 2012 and 2011, respectively. The amount in the third quarter of 2012 included large recoveries arising from two construction and land development loans that the Company had previously charged off. This resulted in net recoveries of $777,000 for the quarter ended September 30, 2012, compared with net charged-off loans of $1.0 million for the second quarter of 2011. Since the beginning of 2011, the Company has charged-off $16.3 million in loans and realized $2.5 million in recoveries.

For the nine months ended September 30, 2012, net charge-offs were $1.5 million compared with $6.7 million for the same period in 2011. Total charge-offs were $3.5 million for the first nine months of 2012 and $7.2 million for the same period in 2011. Recoveries for the nine month comparison period were $2.0 million in 2012, including $1.6 million in the third quarter, and $453,000 in 2011. Management’s aggressive strategy to work nonperforming loans and other real estate owned is evidenced in the volume of charge-offs as well as the level of the loan loss reserve.

Noninterest Income

Noninterest income increased $814,000, from negative $662,000 in the third quarter of 2011, to $152,000 in the third quarter of 2012. Gain/(loss) on sale of OREO was the largest contributor to this increase and improved from a loss of $1.7 million in the third quarter of 2011 to a loss of $767,000 in the third quarter of 2012. Indemnification asset amortization also improved, from $2.4 million in the third quarter of 2011 to $1.6 million in the third quarter of 2011. Service charges on deposit accounts increased $73,000 from the third quarter of 2011 to the same period in 2012. Offsetting these increases was a reduction of $545,000 in gain/(loss) on sale of securities and a reduction in other noninterest income of $398,000 when comparing the two quarters.

For the nine months ended September 30, 2012, noninterest income equaled negative $1.6 million, compared with negative $3.5 million for the nine months ended September 30, 2011. This change was due primarily to a reduction in FDIC indemnification asset amortization of $2.3 million, from $7.8 million for the first nine months of 2011 to $5.4 million for the same period in 2012. Also improving noninterest income performance was a $1.3 million reduction in gain/(loss) on sale of OREO, from a loss of $2.5 million for the first nine months of 2011 to $1.2 million for the same period in 2012. Service charges on deposit accounts increased 8.1%, or $151,000, from $1.9 million for the first nine months of 2011 to $2.0 million for the same period in 2012. Offsetting these increases was a decrease in gain on sale of securities of $1.2 million, from $2.6 million for the first nine months of 2011 to $1.4 million for the same period in 2012. Other noninterest income declined in the nine month period ended September 30, 2012 compared with the same period in 2011. Other noninterest income was $1.6 million for the nine months ended September 30, 2012 and $2.4 million for the nine months ended September 30, 2011. This decrease reflects fewer reimbursable loss events in FDIC covered loans.

Noninterest Expense

Noninterest expenses declined $643,000, or 7.4%, when comparing the third quarter of 2012 to the same period in 2011. Legal fees were the largest category decrease and were $3,000 in the third quarter of 2012 compared with $241,000 in the third quarter of 2011. Also seeing significant declines were FDIC assessment expenses, which declined $212,000, from $580,000 in the third quarter of 2011 to $368,000 in the third quarter of 2012.

45

For the nine months ended September 30, 2012, noninterest expenses declined $2.1 million, or 7.8%, when compared with the same period in 2011. Noninterest expenses were $27.2 million for the first nine months of 2011 and declined to $25.1 million for the first nine months in 2012. FDIC assessment was the largest category decrease, which declined from $2.2 million for the first nine months in 2011 to $1.4 million for the same period in 2012, a decrease of $764,000, or 34.5%. Other operating expenses declined $664,000, or 12.1%, and were $4.8 million for the third quarter of 2012, down from $5.5 million for the same period in 2011. Legal fees declined $339,000, or 89.0%, and were $42,000 for the nine months ended September 30, 2012, down from $381,000 for the same period in 2011. Occupancy declined $210,000, or 9.4%, and were $2.0 million for the first nine months of 2012, down from $2.2 million for the same period in 2011. Professional fees declined $150,000, or 32.8%, and were $307,000 for the first nine months of 2012 compared with $457,000 for the same period in 2011. Reducing these improvements in noninterest income were an increase of $82,000, or 5.8%, in data processing expenses and an increase of $18,000 in salaries and employee benefits from the first nine months of 2011 to the first nine months of 2012.

Income Taxes

Income tax expense was $837,000 for the three months ended September 30, 2012, compared with income tax expense of $473,000 in the second quarter of 2012. Income tax was $532,000 in the third quarter of 2011. For the nine months ended September 30, 2012, income tax expense was $1.7 million compared with income tax benefit of $178,000 for the nine months ended September 30, 2011.

FINANCIAL CONDITION

General

At September 30, 2012, the Company had total assets of $1.112 billion, an increase of $19.8 million, or 1.8%, from total assets of $1.092 billion at December 31, 2011. Total loans were $648.7 million at September 30, 2012, increasing $6.4 million, or 1.0%, from $642.3 million at December 31, 2011. The carrying value of FDIC covered loans declined $8.4 million, or 8.7%, from December 31, 2011 and were $89.1 million at September 30, 2012. Non-covered loans equaled $559.5 million at September 30, 2012, increasing $14.8 million, or 2.7%, since December 31, 2011.

During the third quarter of 2011, the Bank began purchasing government-guaranteed loans under programs administered by the USDA. The Bank has purchased only the government-guaranteed portion of any of the loans that have been originated by other financial institutions. During the first nine months of 2012, $5.5 million in USDA loan balances were added, bringing the total to $42.0 million at September 30, 2012. USDA balances are reflected in non-covered loans and are classified according to collateral and purpose.

The Company’s securities portfolio, excluding equity securities, increased $7.9 million, or 2.7%, during the first nine months of 2012 to $305.1 million, with realized gains of $1.4 million, through sales activity. These net gains were taken during the year in a portfolio repositioning strategy to mitigate interest rate risk in a higher rate environment. In a higher rate environment, the liquidity of fixed rate securities is compromised and interest rate risk increases. Management has shifted from mortgage-backed securities balances to floating rate securities issued by the Small Business Administration (SBA) and high quality state, county and municipalities.

The Company had cash and cash equivalents of $37.4 million at September 30, 2012, compared with $21.8 million at December 31, 2011. There were $5.0 million in Federal funds sold at September 30, 2012, compared with no Federal funds sold at December 31, 2011.

The Company is required to account for the effect of market changes in the value of securities available-for-sale (“AFS”) under FASB ASC 320, Investments – Debt and Equity Securities. The market value of the AFS portfolio was $256.4 million at September 30, 2012 and $232.8 million at December 31, 2011. At September 30, 2012, the Company had a net unrealized gain on the AFS portfolio of $4.7 million compared with a net unrealized gain of $4.9 million at December 31, 2011.

46

Interest bearing deposits at September 30, 2012 were $862.4 million, a decrease of $6.2 million from December 31, 2011. Time deposits less than $100,000 declined $34.0 million during the first nine months of 2011 as management kept rates low among all regions as loan demand remained tepid and covered loans continued to decline in volume. NOW accounts declined $11.6 million and money market deposit accounts declined $2.1 million during the first nine months of 2012. During the third quarter of 2012, the Company obtained a short-term, low cost public fund deposit of $20 million, which resulted in an increase in time deposits greater than $100,000 of $35.0 million during the first nine months of 2012. Savings accounts increased $6.6 million during the first nine months of 2012. The Company’s total loan-to-deposit ratio was 69.0% at September 30, 2012 compared with 68.8% at December 31, 2011.

The Company had Federal Home Loan Bank (FHLB) advances of $50.0 million at September 30, 2012 and $37.0 million at December 31, 2011. During the third quarter of 2012 the Company obtained an additional $13.0 million in FHLB advances, as well as rolling over $22.0 million in maturing advances at much lower rates than was being carried prior to their maturities during the quarter. At June 30, 2012 the Company’s blended rate on its $37.0 million in advances was 3.21% and at September 30, 2012 the blended rate on the $50.0 million in advances is 1.25%. The Company anticipates that the repricing on the $37.0 million will result in approximately $480,000 in after tax savings and net after tax savings on total FHLB borrowings will be approximately $370,000.

Stockholders’ equity was $113.1 million at September 30, 2012 and $111.2 million at December 31, 2011, both periods reflecting ratios that were 10.2% of total assets. Stockholders’ equity was $110.7 million, or 10.3% of total assets, at September 30, 2011.

Asset Quality – non-covered assets

The allowance for loan losses represents management’s estimate of the amount appropriate to provide for probable losses inherent in the loan portfolio.

Non-covered loan quality is continually monitored, and the Company’s management has established an allowance for loan losses that it believes is appropriate for the risks inherent in the loan portfolio. Among other factors, management considers the Company’s historical loss experience, the size and composition of the loan portfolio, the value and appropriateness of collateral and guarantors, non-performing loans and current and anticipated economic conditions. There are additional risks of future loan losses, which cannot be precisely quantified nor attributed to particular loans or classes of loans. Because those risks include general economic trends, as well as conditions affecting individual borrowers, the allowance for loan losses is an estimate. The allowance is also subject to regulatory examinations and determination as to appropriateness, which may take into account such factors as the methodology used to calculate the allowance and size of the allowance in comparison to peer companies identified by regulatory agencies. See Allowance for Loan Losses on Non-covered Loans in the Critical Accounting Policies section above for further discussion.

The Company maintains a list of non-covered loans that have potential weaknesses and thus may need special attention. This loan list is used to monitor such loans and is used in the determination of the appropriateness of the allowance for loan losses. Non-covered nonperforming assets totaled $37.7 million at September 30, 2012 and net charge offs were $1.5 million for the nine months ended September 30, 2012. This compares with nonperforming assets of $40.8 million and net charge offs of $12.2 million at and for the year ended December 31, 2011.

Nonperforming non-covered loans decreased $4.7 million during the nine months ended September 30, 2012. Additions to nonaccrual loans totaled $10.3 million, primarily attributable to 24 relationships relating to loans for construction and land development and loans for residential property, totaling $6.3 million, which are secured by real estate. The remaining increase related primarily to loans for commercial real estate, which are also secured by real estate. There were $3.5 million in charge offs taken during the period centered in commercial real estate, construction and land development, and residential real estate loans. There were $4.2 million in paydowns during the period. Foreclosures for the period totaled $5.1 million and $2.2 million of non-covered loans were reinstated to accruing status.

47

The ratio of the allowance for loan losses to nonperforming assets was 37.93% at September 30, 2012, compared with 36.52% at June 30, 2012 and 34.94% at September 30, 2011. The ratio of allowance for loan losses to total non-covered loans was 2.56% at September 30, 2012, compared with 2.46% at June 30, 2012 and 3.12% at September 30, 2011. The decrease in the allowance for loan losses to total non-covered loans ratio from September 2011 to September 2012 was the result of aggressive charge-offs for non-performing loans and a lesser volume of loans migrating to a non-performing status. This situation has resulted in a stabilization of allowance coverage ratios.

In accordance with GAAP, an individual loan is impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due in accordance with contractual terms of the loan agreement. The Company considers all troubled debt restructured and nonaccrual loans to be impaired loans. In addition, the Company reviews all substandard and doubtful loans that are not on nonaccrual status, as well as loans with other risk characteristics, pursuant to and specifically for compliance with the accounting definition of impairment as described above. These impaired loans have been determined through analysis, appraisals, or other methods used by management.

See Note 3 to the Company’s financial statements for information related to the allowance for loan losses. At September 30, 2012 and December 31, 2011, total impaired non-covered loans equaled $26.9 million and $35.2 million, respectively.

48

The following table sets forth selected asset quality data, excluding FDIC covered assets, and ratios for the dates indicated:

(dollars in thousands)	September 30, 2012			December 31, 2011
Nonaccrual loans	$	25,730		$	28,542
Loans past due over 90 days and accruing interest		85			2,005
Total nonperforming non-covered loans		25,815			30,547
Other real estate owned (OREO) – non-covered		11,896			10,252
Total nonperforming non-covered assets	$	37,711		$	40,799
Accruing troubled debt restructure loans	$	5,812		$	5,946
Balances
Specific reserve on impaired loans		2,966			2,765
General reserve related to unimpaired loans		11,337			12,070
Total allowance for loan losses		14,303			14,835
Average loans during quarter, net of unearned income		556,355			521,194
Impaired loans		26,853			35,158
Non-impaired loans		532,679			509,560
Total loans, net of unearned income		559,532			544,718
Ratios
Allowance for loan losses to loans		2.56	%		2.72	%
Allowance for loan losses to nonperforming assets		37.93	%		36.36	%
Allowance for loan losses to nonaccrual loans		55.59	%		51.98	%
General reserve to non-impaired loans		2.13	%		2.37	%
Nonaccrual loans to loans		4.60	%		5.24	%
Nonperforming assets to loans and other real estate		6.60	%		7.35	%
Net charge offs for quarter to average loans, annualized		(0.56	%)		0.71	%

The percent of the general component portion of the allowance to the non-impaired portfolio has declined since year end due to the reduction of accruing substandard loans from December 31, 2011 to September 30, 2012, coupled with a decrease in the historical loss factor used in this calculation as a result of an improved unemployment forecast.

The Company performs troubled debt restructures (“TDR”) and other various loan workouts whereby an existing loan may be restructured into multiple new loans. At September 30, 2012, the Company had 18 loans that met the definition of a TDR, which are loans that for reasons related to the debtor’s financial difficulties have been restructured on terms and conditions that would otherwise not be offered or granted. Three of these loans were restructured using multiple new loans. The aggregated outstanding principal of TDR loans at September 30, 2012 was $12.8 million, of which $7.0 million were classified as nonaccrual.

The primary benefit of the restructured multiple loan workout strategy is to maximize the potential return by restructuring the loan into a “good loan” (the A loan) and a “bad loan” (the B loan). The impact on interest is positive because the Bank is collecting interest on the A loan rather than potentially not collecting interest on the entire original loan structure. The A loan is underwritten pursuant to the Bank’s standard requirements and graded accordingly. The B loan is classified as either “doubtful” or “loss”. An impairment analysis is performed on the B loan and, based on its results, all or a portion of the B note is charged-off or a specific loan loss reserve is established.

49

The Company does not modify its nonaccrual policies in this arrangement, and the A loan and the B loan stand on their own terms. At inception, this structure meets the definition of a TDR. If the loan is on nonaccrual at the time of restructure, the A loan is held on nonaccrual until six consecutive payments have been received, at which time it may be put back on an accrual status. The B loan is placed on nonaccrual. Under the terms of each loan, the borrower’s payment is contractually due.

A further breakout of nonaccrual loans, excluding covered loans, at September 30, 2012 and December 31, 2011 is below (dollars in thousands):

	September 30, 2012		December 31, 2011
	Amount of Nonaccrual Loans		Amount of Nonaccrual Loans
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		—		—
Gross loans	$	25,730	$	28,542

At September 30, 2012, the Company had nine construction and land development credit relationships in nonaccrual status. The borrowers for eight of these relationships are residential land developers. The remaining relationship is for the construction of a 1-4 family residence. All of the relationships are secured by the real estate to be developed, and almost all of such projects are in the Company’s central Virginia market. The total amount of the credit exposure outstanding at September 30, 2012 was $10.3 million. These loans have either been charged-down or sufficiently reserved against to equal the current expected realizable value.

There have been no charge-offs related to these relationships during the first nine months of 2012. The total amount of the allowance for loan losses attributed to all nine relationships was $1.7 million at September 30, 2012, or 16.1% of the total credit exposure outstanding. The Company establishes its reserves as described above in Allowance for Loan Losses on Non-covered Loans in the Critical Accounting Policies section. In conjunction with the impairment analysis the Company performs as part of its allowance methodology, the Company ordered appraisals for all loans with balances in excess of $250,000 unless there existed an appraisal that was not older than 12 months. The Company orders an automated valuation for balances between $100,000 and $250,000 and uses a ratio analysis for balances less than $100,000. The Company maintains detailed analysis and other information for its allowance methodology, both for internal purposes and for review by its regulators.

50

Asset Quality – covered assets

Loans accounted for under ASC 310-30 are generally considered accruing and performing loans as the loans accrete interest income over the estimated life of the loan. Accordingly, acquired impaired loans that are contractually past due are still considered to be accruing and performing loans.

The Company makes an estimate of the total cash flows that it expects to collect from a pool of covered loans, which include undiscounted expected principal and interest. Over the life of the loan or pool, the Company continues to estimate cash flows expected to be collected. Subsequent decreases in cash flows expected to be collected over the life of the pool are recognized as impairment in the current period through the allowance for loan losses. Subsequent increases in expected cash flows are first used to reverse any existing valuation allowance for that loan or pool. Any remaining increase in cash flows expected to be collected is recognized as an adjustment to the yield over the remaining life of the pool.

Covered assets that would normally be considered nonperforming except for the accounting requirements regarding purchased impaired loans and other real estate owned covered by the shared loss agreements at September 30, 2012 and December 31, 2011 are as follows (dollars in thousands):

	September 30, 2012		December 31, 2011
Nonaccrual covered loans	$	10,291	$	11,469
Other real estate owned (OREO) - covered		2,943		5,764
Total nonperforming covered assets	$	13,234	$	17,233

Capital Requirements

The determination of capital adequacy depends upon a number of factors, such as asset quality, liquidity, earnings, growth trends and economic conditions. The Company seeks to maintain a strong capital base to support its growth and expansion plans, provide stability to current operations and promote public confidence in the Company.

The federal banking regulators have defined three tests for assessing the capital strength and adequacy of banks, based on two definitions of capital. “Tier 1 capital” is defined as common equity, retained earnings and qualifying perpetual preferred stock, less certain intangibles. “Tier 2 capital” is defined as specific subordinated debt, some hybrid capital instruments and other qualifying preferred stock and a limited amount of the loan loss allowance. “Total capital” is defined as tier 1 capital plus tier 2 capital. Three risk-based capital ratios are computed using the above capital definitions, total assets and risk-weighted assets and are measured against regulatory minimums to ascertain adequacy. All assets and off-balance sheet risk items are grouped into categories according to degree of risk and assigned a risk-weighting and the resulting total is risk-weighted assets. “Tier 1 risk-based capital” is tier 1 capital divided by risk-weighted assets. “Total risk-based capital” is total capital divided by risk-weighted assets. The leverage ratio is tier 1 capital divided by total average assets.

The Company’s ratio of total risk-based capital was 16.8% at September 30, 2012 compared to 16.2% at December 31, 2011. The tier 1 risk-based capital ratio was 15.6% at September 30, 2012 and 15.0% at December 31, 2011. The Company’s tier 1 leverage ratio was 9.3% at September 30, 2012 and 8.9% at December 31, 2011. All capital ratios exceed regulatory minimums. In the fourth quarter of 2003, BOE issued trust preferred subordinated debt that qualifies as regulatory capital. This trust preferred debt, which has been assumed by the Company, has a 30-year maturity with a 5-year call option and was issued at a rate of three month LIBOR plus 3.0%. The weighted average cost of this instrument was 3.46% during the three months ended September 30, 2012.

On August 22, 2012, the Company paid six quarterly cash dividends, each in the amount of $221,000, including the one that was due on August 15, 2012, with respect to its Fixed Rate Cumulative Perpetual Preferred Stock, Series A. The Company issued the Preferred Stock to the United States Department of the Treasury in connection with the Company’s participation in the Treasury’s TARP Capital Purchase Program in December 2008. The Company also paid all outstanding interest on the dividend payments that the Company had previously deferred. As of September 30, 2012, the Company is current in its payment of dividends with respect to the Series A Preferred Stock.

51

Liquidity

Liquidity represents the Company’s ability to meet present and future financial obligations through either the sale or maturity of existing assets or the acquisition of additional funds through liability management. Liquid assets include cash, interest-bearing deposits with banks, federal funds sold, and certain investment securities. As a result of the Company’s management of liquid assets and the ability to generate liquidity through liability funding, management believes that the Company maintains overall liquidity sufficient to satisfy its depositors’ requirements and meet its customers’ credit needs.

The Company’s results of operations are significantly affected by its ability to manage effectively the interest rate sensitivity and maturity of its interest-earning assets and interest-bearing liabilities. At September 30, 2012 and December 31, 2011, the Company’s interest-earning assets exceeded its interest-bearing liabilities by $68.6 million and $47.9 million, respectively.

Off-Balance Sheet Arrangements and Contractual Obligations

A summary of the contract amount of the Bank’s exposure to off-balance sheet and balance sheet risk as of September 30, 2012 and December 31, 2011, is as follows (dollars in thousands):

	September 30, 2012		December 31, 2011
Commitments with off-balance sheet risk:
Commitments to extend credit	$	58,844	$	51,964
Standby letters of credit		9,830		9,278
Total commitments with off-balance sheet risks	$	68,674	$	61,242
Commitments with balance sheet risk:
Loans held for sale	$	1,736	$	580
Total commitments with balance sheet risks	$	1,736	$	580
Total commitments	$	70,410	$	61,822

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property and equipment, and income-producing commercial properties. Unfunded commitments under lines of credit are commitments for possible future extensions of credit to existing customers. Those lines of credit may be drawn upon only to the total extent to which the Bank is committed.

Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to clients. The Bank holds certificates of deposit, deposit accounts, and real estate as collateral supporting those commitments for which collateral is deemed necessary.

52

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk of loss in a financial instrument arising from adverse changes in market rates or prices such as interest rates, foreign currency exchange rates, commodity prices and equity prices. The Company’s primary market risk exposure is interest rate risk. The ongoing monitoring and management of interest rate risk is an important component of the Company’s asset/liability management process, which is governed by policies established by its Board of Directors that are reviewed and approved annually. The Board of Directors delegates responsibility for carrying out asset/liability management policies to the Asset/Liability Committee (“ALCO”) of the Bank. In this capacity, ALCO develops guidelines and strategies that govern the Company’s asset/liability management related activities, based upon estimated market risk sensitivity, policy limits and overall market interest rate levels and trends.

Interest rate risk represents the sensitivity of earnings to changes in market interest rates. As interest rates change, the interest income and expense streams associated with the Company’s financial instruments also change, affecting net interest income, the primary component of the Company’s earnings. ALCO uses the results of a detailed and dynamic simulation model to quantify the estimated exposure of net interest income to sustained interest rate changes. While ALCO routinely monitors simulated net interest income sensitivity over various periods, it also employs additional tools to monitor potential longer-term interest rate risk.

The simulation model captures the impact of changing interest rates on the interest income received and interest expense paid on all assets and liabilities reflected on the Company’s balance sheet. The simulation model is prepared and updated monthly. This sensitivity analysis is compared to ALCO policy limits, which specify a maximum tolerance level for net interest income exposure over a one-year horizon, assuming no balance sheet growth, given a 200 basis point upward shift and a 200 basis point downward shift in interest rates. A parallel shift in rates over a 12-month period is assumed. The following table represents the change to net interest income given interest rate shocks up and down 100 and 200 basis points at September 30, 2012:

	Change in net interest income
	%			$
Change in Yield curve
+200 bp		(5.0	)%	$	(2,060	)
+100 bp		(3.1	)%		(1,267	)
most likely		0	%		—
–100 bp		(0.6	)%		(235	)
–200 bp		(0.9	)%		(379	)

At September 30, 2012, the Company’s interest rate risk model indicated that, in a rising rate environment of 200 basis points over a 12 month period, net interest income could decrease by 5.0%. For the same time period, the interest rate risk model indicated that in a declining rate environment of 200 basis points, net interest income could decrease by 0.9%. While these percentages are subjective based upon assumptions used within the model, management believes the balance sheet is appropriately balanced with acceptable risk to changes in interest rates.

The preceding sensitivity analysis does not represent a forecast and should not be relied upon as being indicative of expected operating results. These hypothetical estimates are based upon numerous assumptions, including the nature and timing of interest rate levels such as yield curve shape, prepayments on loans and securities, deposit decay rates, pricing decisions on loans and deposits, reinvestment or replacement of asset and liability cash flows. While assumptions are developed based upon current economic and local market conditions, the Company cannot make any assurances about the predictive nature of these assumptions, including how customer preferences or competitor influences might change.

Also, as market conditions vary from those assumed in the sensitivity analysis, actual results will also differ due to factors such as prepayment and refinancing levels likely deviating from those assumed, the varying impact of interest rate change, caps or floors on adjustable rate assets, the potential effect of changing debt service levels on customers with adjustable rate loans, depositor early withdrawals and product preference changes, and other internal and external variables. Furthermore, the sensitivity analysis does not reflect actions that ALCO might take in response to, or in anticipation of, changes in interest rates.

53

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this Form 10-Q, the Company’s management, with the participation of the Company’s chief executive officer and its chief financial officer (“the Certifying Officers”), conducted evaluations of the Company’s disclosure controls and procedures. As defined under Section 13a-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the term “disclosure controls and procedures” means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including the Certifying Officers, to allow timely decisions regarding required disclosures.

Based on this evaluation, the Certifying Officers have concluded that the Company’s disclosure controls and procedures were effective to ensure that material information is recorded, processed, summarized and reported by management of the Company on a timely basis in order to comply with the Company’s disclosure obligations under the Exchange Act and the rules and regulations promulgated under it.

Internal Control over Financial Reporting

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. The Company’s internal control over financial reporting is a process designed under the supervision of the Certifying Officers to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s financial statements for external purposes in accordance with generally accepted accounting principles. There were no changes in the Company’s internal control over financial reporting identified in connection with the evaluation of it that occurred during the Company’s last fiscal quarter that materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

54

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

There are no material pending legal proceedings, other than ordinary routine litigation incidental to the Company’s business, to which the Company, including its subsidiaries, is a party or of which the property of the Company is subject.

Item 1A. Risk Factors

As of the date of this report, there were no material changes to the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit No.	Description
31.1	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*
101	Interactive Data File with respect to the following materials from the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2012, formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements*

* Filed herewith.

55

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	COMMUNITY BANKERS TRUST CORPORATION
	(Registrant)
	/s/ Rex L. Smith, III
	Rex L. Smith, III
	President and Chief Executive Officer
	(principal executive officer)
Date: November 14, 2012
	/s/ Bruce E. Thomas
	Bruce E. Thomas
	Executive Vice President and Chief Financial Officer (principal financial officer)

Date: November 14, 2012

56

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Rex L. Smith, III, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended September 30, 2012 of Community Bankers Trust Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Rex L. Smith, III

Rex L. Smith, III

President and Chief Executive Officer

(principal executive officer)

Date: November 14, 2012

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Bruce E. Thomas, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended September 30, 2012 of Community Bankers Trust Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Bruce E. Thomas

Bruce E. Thomas

Executive Vice President and Chief Financial Officer

(principal financial officer)

Date: November 14, 2012

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the period ended September 30, 2012 (the “Report”) of Community Bankers Trust Corporation (the “Company”), the undersigned President and Chief Executive Officer and Executive Vice President and Chief Financial Officer certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to their knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results of operations of the Company and its subsidiaries as of, and for, the periods presented in the Report.

/s/ Rex L. Smith, III

Rex L. Smith, III

President and Chief Executive Officer

(principal executive officer)

/s/ Bruce E. Thomas

Bruce E. Thomas

Executive Vice President
and Chief Financial Officer

(principal financial officer)

Date: November 14, 2012

XML

Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) (Details 2) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Non-covered nonaccruals by loan category
Total loans	$ 25,730	$ 28,542
Mortgage loans on real estate [Member]
Non-covered nonaccruals by loan category
Total loans	24,902	27,467
Mortgage loans on real estate [Member] | Residential 1-4 family [Member]
Non-covered nonaccruals by loan category
Total loans	5,474	5,320
Mortgage loans on real estate [Member] | Commercial [Member]
Non-covered nonaccruals by loan category
Total loans	8,916	9,187
Mortgage loans on real estate [Member] | Construction and land development [Member]
Non-covered nonaccruals by loan category
Total loans	10,318	12,718
Mortgage loans on real estate [Member] | Second mortgages [Member]
Non-covered nonaccruals by loan category
Total loans	140	189
Mortgage loans on real estate [Member] | Multifamily [Member]
Non-covered nonaccruals by loan category
Total loans
Mortgage loans on real estate [Member] | Agriculture [Member]
Non-covered nonaccruals by loan category
Total loans	54	53
Commercial loans [Member]
Non-covered nonaccruals by loan category
Total loans	703	1,003
Consumer installment loans [Member]
Non-covered nonaccruals by loan category
Total loans	125	72
All other loans [Member]
Non-covered nonaccruals by loan category
Total loans

XML

FDIC Agreements and FDIC Indemnification Asset (Details Textual) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2012
FDIC Agreements and FDIC Indemnification Asset (Textual) [Abstract]
Purchase and Assumption Agreement date with the FDIC	Jan. 30, 2009
Percentage of losses reimburse by FDIC to bank arising from covered loans and foreclosed real estate assets	80.00%
Losses on covered loans and foreclosed real estate assets	$ 118
Percentage of losses reimburse by FDIC to bank on covered loans and foreclosed real estate assets thereafter	95.00%

XML

Loans Covered by FDIC Shared Loss Agreement (Covered Loans) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Summary of covered loans
Loans covered by FDIC shared loss agreement	$ 89,121	$ 97,561
% of Covered Loans	100.00%	100.00%
Mortgage loans on real estate [Member]
Summary of covered loans
Loans covered by FDIC shared loss agreement	89,119	97,553
% of Covered Loans	99.99%	99.99%
Commercial loans [Member]
Summary of covered loans
Loans covered by FDIC shared loss agreement
% of Covered Loans
Consumer installment loans [Member]
Summary of covered loans
Loans covered by FDIC shared loss agreement	2	8
% of Covered Loans	0.01%	0.01%
All other loans [Member]
Summary of covered loans
Loans covered by FDIC shared loss agreement
% of Covered Loans
Residential 1-4 family [Member] | Mortgage loans on real estate [Member]
Summary of covered loans
Loans covered by FDIC shared loss agreement	78,133	84,734
% of Covered Loans	87.67%	86.85%
Commercial [Member] | Mortgage loans on real estate [Member]
Summary of covered loans
Loans covered by FDIC shared loss agreement	2,030	2,170
% of Covered Loans	2.28%	2.22%
Construction and land development [Member] | Mortgage loans on real estate [Member]
Summary of covered loans
Loans covered by FDIC shared loss agreement	3,328	4,260
% of Covered Loans	3.73%	4.38%
Second mortgages [Member] | Mortgage loans on real estate [Member]
Summary of covered loans
Loans covered by FDIC shared loss agreement	5,148	5,894
% of Covered Loans	5.78%	6.04%
Multifamily [Member] | Mortgage loans on real estate [Member]
Summary of covered loans
Loans covered by FDIC shared loss agreement	308	316
% of Covered Loans	0.35%	0.32%
Agriculture [Member] | Mortgage loans on real estate [Member]
Summary of covered loans
Loans covered by FDIC shared loss agreement	$ 172	$ 179
% of Covered Loans	0.18%	0.18%

XML

Other Intangibles (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended			12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012 Core Deposit Intangibles [Member]	Dec. 31, 2011 Core Deposit Intangibles [Member]
Other intangible assets
Other intangible assets, Beginning Balance			$ 12,558		$ 12,558	$ 14,819
Amortization	(565)	(565)	(1,695)	(1,696)	(1,695)	(2,261)
Other intangible assets, Closing Balance	$ 10,863		$ 10,863		$ 10,863	$ 12,558

XML

Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) (Details 9) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012 Contract	Sep. 30, 2011 Contract
Information relating to TDRs that resulted in default
Number of Contracts	2	4
Recorded Investment	$ 742	$ 2,347
Commercial [Member]
Information relating to TDRs that resulted in default
Recorded Investment		1,400
Mortgage loans on real estate [Member]
Information relating to TDRs that resulted in default
Number of Contracts	1	3
Recorded Investment	668	1,822
Mortgage loans on real estate [Member] | Construction and land development [Member]
Information relating to TDRs that resulted in default
Number of Contracts	1
Recorded Investment	668
Mortgage loans on real estate [Member] | Residential 1-4 family [Member]
Information relating to TDRs that resulted in default
Number of Contracts		2
Recorded Investment		406
Mortgage loans on real estate [Member] | Commercial [Member]
Information relating to TDRs that resulted in default
Number of Contracts		1
Recorded Investment		1,416
Commercial loans [Member]
Information relating to TDRs that resulted in default
Number of Contracts	1	1
Recorded Investment	$ 74	$ 525

XML

Securities (Details 1) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012
Amortized cost and fair value of securities by contractual maturity
Due in one year or less, Held to Maturity, Amortized Cost	$ 3,588
Due after one year through five years, Held to Maturity, Amortized Cost	38,843
Due after five years through ten years, Held to Maturity, Amortized Cost	6,258
Due after ten years, Held to Maturity, Amortized Cost
Total securities, Held to Maturity, Amortized Cost	48,689
Due in one year or less, Held to Maturity, Fair Value	3,625
Due after one year through five years, Held to Maturity, Fair Value	41,281
Due after five years through ten years, Held to Maturity, Fair Value	7,107
Due after ten years, Held to Maturity, Fair Value
Total securities, Held to Maturity, Fair Value	52,013
Due in one year or less, Available for Sale, Amortized Cost	5,454
Due after one year through five years, Available for Sale, Amortized Cost	42,554
Due after five years through ten years, Available for Sale, Amortized Cost	121,187
Due after ten years, Available for Sale, Amortized Cost	82,522
Total securities, Available for Sale, Amortized Cost	251,717
Due in one year or less, Available for Sale, Fair Value	5,424
Due after one year through five years, Available for Sale, Fair Value	43,030
Due after five years through ten years, Available for Sale, Fair Value	125,589
Due after ten years, Available for Sale, Fair Value	82,351
Total securities, Available for Sale, Fair Value	$ 256,394

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Deposits (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Summary of interest-bearing deposits
NOW	$ 117,120	$ 128,758
MMDA	113,288	115,397
Savings	76,499	69,872
Time deposits less than $100,000	292,374	326,383
Time deposits $100,000 and over	263,087	228,128
Total interest-bearing deposits	$ 862,368	$ 868,538

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Other Intangibles (Tables)

9 Months Ended

Sep. 30, 2012

Other Intangibles [Abstract]

Other intangible assets

Other intangible assets are presented in the following table (dollars in thousands):

	Core Deposit Intangibles
Balance, January 1, 2011	$	14,819
Amortization		(2,261	)
Balance, December 31, 2011		12,558
Amortization		(1,695	)
Balance, September 30, 2012	$	10,863

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Loans Covered by FDIC Shared Loss Agreement (Covered Loans) (Details 2) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Loans covered	$ 89,121	$ 97,561
Mortgage loans on real estate [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Loans covered	89,119	97,553
Commercial loans [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Loans covered
Consumer installment loans [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Loans covered	2	8
All other loans [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Loans covered
Construction and land development [Member] | Mortgage loans on real estate [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Loans covered	3,328	4,260
Second mortgages [Member] | Mortgage loans on real estate [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Loans covered	5,148	5,894
Multifamily [Member] | Mortgage loans on real estate [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Loans covered	308	316
Agriculture [Member] | Mortgage loans on real estate [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Loans covered	172	179
Covered Loans [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Allowance for loan losses	456	776	829
Loans covered	89,121	97,561
Covered Loans [Member] | Mortgage loans on real estate [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Allowance for loan losses	456	776	829
Loans covered	89,119	97,553
Covered Loans [Member] | Commercial loans [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Allowance for loan losses
Loans covered
Covered Loans [Member] | Consumer installment loans [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Allowance for loan losses
Loans covered	2	8
Covered Loans [Member] | All other loans [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Allowance for loan losses
Loans covered
Covered Loans [Member] | Residential 1-4 family [Member] | Mortgage loans on real estate [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Allowance for loan losses	196	473	526
Loans covered	78,133	84,734
Covered Loans [Member] | Commercial [Member] | Mortgage loans on real estate [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Allowance for loan losses	260	303	303
Loans covered	2,030	2,170
Covered Loans [Member] | Construction and land development [Member] | Mortgage loans on real estate [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Allowance for loan losses
Loans covered	3,328	4,260
Covered Loans [Member] | Second mortgages [Member] | Mortgage loans on real estate [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Allowance for loan losses
Loans covered	5,148	5,894
Covered Loans [Member] | Multifamily [Member] | Mortgage loans on real estate [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Allowance for loan losses
Loans covered	308	316
Covered Loans [Member] | Agriculture [Member] | Mortgage loans on real estate [Member]
Summary of covered loans collectively evaluated for impairment in allowance for loan losses
Allowance for loan losses
Loans covered	$ 172	$ 179

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Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) (Details 5) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Allowance for loan losses on non-covered loans by loan category
Allowance for loan losses, beginning balance	$ 14,835	$ 25,543
Provision Allocation	1,000	1,498
Charge offs	(3,523)	(12,794)
Recoveries	1,991	588
Allowance for loan losses, ending balance	14,303	14,835
Mortgage loans on real estate [Member]
Allowance for loan losses on non-covered loans by loan category
Allowance for loan losses, beginning balance	12,773	22,520
Provision Allocation	730	(1,032)
Charge offs	(3,013)	(8,891)
Recoveries	1,755	176
Allowance for loan losses, ending balance	12,245	12,773
Mortgage loans on real estate [Member] | Residential 1-4 family [Member]
Allowance for loan losses on non-covered loans by loan category
Allowance for loan losses, beginning balance	3,451	6,262
Provision Allocation	2,095	(998)
Charge offs	(1,451)	(1,831)
Recoveries	3	18
Allowance for loan losses, ending balance	4,098	3,451
Mortgage loans on real estate [Member] | Commercial [Member]
Allowance for loan losses on non-covered loans by loan category
Allowance for loan losses, beginning balance	3,048	5,287
Provision Allocation	403	563
Charge offs	(639)	(2,856)
Recoveries	68	54
Allowance for loan losses, ending balance	2,880	3,048
Mortgage loans on real estate [Member] | Construction and land development [Member]
Allowance for loan losses on non-covered loans by loan category
Allowance for loan losses, beginning balance	5,729	10,039
Provision Allocation	(1,744)	(288)
Charge offs	(923)	(4,123)
Recoveries	1,628	101
Allowance for loan losses, ending balance	4,690	5,729
Mortgage loans on real estate [Member] | Second mortgages [Member]
Allowance for loan losses on non-covered loans by loan category
Allowance for loan losses, beginning balance	296	406
Provision Allocation	(91)	(32)
Charge offs	0	(81)
Recoveries	56	3
Allowance for loan losses, ending balance	261	296
Mortgage loans on real estate [Member] | Multifamily [Member]
Allowance for loan losses on non-covered loans by loan category
Allowance for loan losses, beginning balance	224	260
Provision Allocation	48	(36)
Charge offs	0
Recoveries
Allowance for loan losses, ending balance	272	224
Mortgage loans on real estate [Member] | Agriculture [Member]
Allowance for loan losses on non-covered loans by loan category
Allowance for loan losses, beginning balance	25	266
Provision Allocation	19	(241)
Charge offs	0
Recoveries	0
Allowance for loan losses, ending balance	44	25
Commercial loans [Member]
Allowance for loan losses on non-covered loans by loan category
Allowance for loan losses, beginning balance	1,810	2,691
Provision Allocation	216	2,527
Charge offs	(396)	(3,615)
Recoveries	182	207
Allowance for loan losses, ending balance	1,812	1,810
Consumer installment loans [Member]
Allowance for loan losses on non-covered loans by loan category
Allowance for loan losses, beginning balance	241	257
Provision Allocation	50	67
Charge offs	(114)	(288)
Recoveries	54	205
Allowance for loan losses, ending balance	231	241
All other loans [Member]
Allowance for loan losses on non-covered loans by loan category
Allowance for loan losses, beginning balance	11	75
Provision Allocation	4	(64)
Charge offs	0
Recoveries	0
Allowance for loan losses, ending balance	$ 15	$ 11

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Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Summary of non-covered loans
% of Non-Covered Loans	100.00%	100.00%
Total loans	$ 559,724	$ 544,950
Less unearned income on loans	(192)	(232)
Non-covered loans, net of unearned income	559,532	544,718
Mortgage loans on real estate [Member]
Summary of non-covered loans
% of Non-Covered Loans	85.27%	84.90%
Total loans	477,302	462,681
Mortgage loans on real estate [Member] | Residential 1-4 family [Member]
Summary of non-covered loans
% of Non-Covered Loans	23.44%	23.34%
Total loans	131,192	127,200
Mortgage loans on real estate [Member] | Commercial [Member]
Summary of non-covered loans
% of Non-Covered Loans	43.18%	40.46%
Total loans	241,692	220,471
Mortgage loans on real estate [Member] | Construction and land development [Member]
Summary of non-covered loans
% of Non-Covered Loans	11.49%	13.89%
Total loans	64,304	75,691
Mortgage loans on real estate [Member] | Second mortgages [Member]
Summary of non-covered loans
% of Non-Covered Loans	1.35%	1.49%
Total loans	7,569	8,129
Mortgage loans on real estate [Member] | Multifamily [Member]
Summary of non-covered loans
% of Non-Covered Loans	3.93%	3.62%
Total loans	22,018	19,746
Mortgage loans on real estate [Member] | Agriculture [Member]
Summary of non-covered loans
% of Non-Covered Loans	1.88%	2.10%
Total loans	10,527	11,444
Commercial loans [Member]
Summary of non-covered loans
% of Non-Covered Loans	13.12%	13.24%
Total loans	73,415	72,149
Consumer installment loans [Member]
Summary of non-covered loans
% of Non-Covered Loans	1.33%	1.55%
Total loans	7,442	8,461
All other loans [Member]
Summary of non-covered loans
% of Non-Covered Loans	0.28%	0.31%
Total loans	$ 1,565	$ 1,659

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Loans Covered by FDIC Shared Loss Agreement (Covered Loans) (Details Textual) (Covered Loans [Member], USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011	Jan. 30, 2009
Loans Covered by FDIC Shared Loss Agreement Covered Loans (Textual) [Abstract]
Company entered into Purchase and Assumption Agreement with the FDIC	Jan. 30, 2009
Loans acquired			$ 198.3
Loans met criteria of ASC 310-30			49.1
Outstanding balance of covered loans	143.5	160.0
Residential 1-4 family [Member]
Loans Covered by FDIC Shared Loss Agreement Covered Loans (Textual) [Abstract]
Remaining of loans acquired			$ 149.1

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Fair Values of Assets and Liabilities (Details 2) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Financial assets:
Securities held to maturity	$ 52,013	$ 68,585
Loans and Leases Receivable, Net Amount	633,894	626,668
Loans not covered by FDIC shared loss agreement	559,532	544,718
Loans covered	89,121	97,561
FDIC indemnification asset	36,191	42,641	58,369
Financial liabilities:
Interest-bearing deposits	862,368	868,538
Level 1 [Member]
Financial assets:
Securities held to maturity	0
Loans and Leases Receivable, Net Amount	0
Loans covered	0
FDIC indemnification asset	0
Financial liabilities:
Interest-bearing deposits	0
Borrowings	0
Level 2 [Member]
Financial assets:
Securities held to maturity	52,013
Securities held to maturity, estimated fair value		68,585
Loans and Leases Receivable, Net Amount	549,978
Loans not covered by FDIC shared loss agreement		522,960
Loans covered	0
FDIC indemnification asset	0
Financial liabilities:
Interest-bearing deposits	844,501
Interest-bearing deposits, estimated fair value		870,909
Borrowings	54,847
Borrowings, estimated fair value		45,002
Level 3 [Member]
Financial assets:
Securities held to maturity	0
Loans and Leases Receivable, Net Amount	0
Loans covered	100,464
Loans, covered, estimated fair value		99,008
FDIC indemnification asset	18,575	22,892
Financial liabilities:
Interest-bearing deposits	0
Borrowings	0
Carrying Value [Member]
Financial assets:
Securities held to maturity	48,689	64,422
Loans and Leases Receivable, Net Amount	545,229	529,883
Loans covered	88,665	96,785
FDIC indemnification asset	36,191	42,641
Financial liabilities:
Interest-bearing deposits	862,368	868,538
Borrowings	54,124	41,124
Estimated Fair Value [Member]
Financial assets:
Securities held to maturity	52,013
Securities held to maturity, estimated fair value		68,585
Loans and Leases Receivable, Net Amount	549,978
Loans not covered by FDIC shared loss agreement		522,960
Loans covered	100,464
Loans, covered, estimated fair value		99,008
FDIC indemnification asset	18,575	22,892
Financial liabilities:
Interest-bearing deposits	844,501
Interest-bearing deposits, estimated fair value		870,909
Borrowings	54,847
Borrowings, estimated fair value		$ 45,002

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Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012 Loan	Sep. 30, 2011 Loan Contract	Sep. 30, 2012 Contract	Sep. 30, 2011 Contract	Dec. 31, 2011
Financing Receivable, Modifications [Line Items]
Recorded Investment	$ 742,000	$ 2,347,000	$ 742,000	$ 2,347,000
Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) (Textual) [Abstract]
Purchased government-guaranteed loans	42,000,000		42,000,000		36,500,000
Percentage of loans guaranteed by the USDA	100.00%		100.00%
Provision for loan loss			0
Unamortized purchase premium	3,700,000		3,700,000		3,600,000
Nonperforming construction loans with interest reserves	4,800,000		4,800,000		4,800,000
Average investment in impaired loans	27,757,000	45,271,000	30,740,000	46,780,000
Interest income on nonaccrual loans	0	0	0	0
Estimated interest income	473,000	836,000	1,200,000	2,300,000
Individually evaluated for impairment	16,500,000		16,500,000		19,600,000
Allowance for loans losses	743,000		743,000		1,400,000
Number of loans modified to considered troubled debt restructurings	2	0	7	6
Number of default loans, restructured during the previous 12 months	2	1	2	4
Loan expiration period			90 days
1-4 family mortgages, pledged as collateral to the Federal Home Loan Bank	157,400,000		157,400,000
Total borrowing capacity	101,400,000		101,400,000
Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Recorded Investment		$ 1,400,000		$ 1,400,000

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Securities

9 Months Ended

Sep. 30, 2012

Securities [Abstract]

SECURITIES

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

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.

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.

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Fair Values of Assets and Liabilities (Details Textual) (Minimum [Member], USD $)	Sep. 30, 2012
Minimum [Member]
Fair Values of Assets and Liabilities (Textual) [Abstract]
Eligibility criteria of classified loans for appraisal by professional appraiser	$ 250,000

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Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) (Details 6) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Total	$ 14,303	$ 14,835	$ 25,543
Total Loans Receivable	559,724	544,950
Allowance for Loan Losses [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Individually Evaluated for Impairment	3,709	4,157
Allowance for Loan Losses, Collectively Evaluated for Impairment	10,594	10,678
Allowance for Loan Losses, Total	14,303	14,835
Recorded Investment in Loans [Member]
Non-covered loans evaluated for impairment
Recorded Investment in Loans, Individually Evaluated for Impairment	43,386	54,712
Recorded Investment in Loans, Collectively Evaluated for Impairment	516,338	490,238
Total Loans Receivable	559,724	544,950
Mortgage loans on real estate [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Total	12,245	12,773	22,520
Total Loans Receivable	477,302	462,681
Mortgage loans on real estate [Member] | Allowance for Loan Losses [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Individually Evaluated for Impairment	3,591	3,816
Allowance for Loan Losses, Collectively Evaluated for Impairment	8,654	8,957
Allowance for Loan Losses, Total	12,245	12,773
Mortgage loans on real estate [Member] | Recorded Investment in Loans [Member]
Non-covered loans evaluated for impairment
Recorded Investment in Loans, Individually Evaluated for Impairment	42,273	52,987
Recorded Investment in Loans, Collectively Evaluated for Impairment	435,029	409,694
Total Loans Receivable	477,302	462,681
Mortgage loans on real estate [Member] | Residential 1-4 family [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Total	4,098	3,451	6,262
Total Loans Receivable	131,192	127,200
Mortgage loans on real estate [Member] | Residential 1-4 family [Member] | Allowance for Loan Losses [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Individually Evaluated for Impairment	917	1,088
Allowance for Loan Losses, Collectively Evaluated for Impairment	3,181	2,363
Allowance for Loan Losses, Total	4,098	3,451
Mortgage loans on real estate [Member] | Residential 1-4 family [Member] | Recorded Investment in Loans [Member]
Non-covered loans evaluated for impairment
Recorded Investment in Loans, Individually Evaluated for Impairment	9,747	8,921
Recorded Investment in Loans, Collectively Evaluated for Impairment	121,445	118,279
Total Loans Receivable	131,192	127,200
Mortgage loans on real estate [Member] | Commercial [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Total	2,880	3,048	5,287
Total Loans Receivable	241,692	220,471
Mortgage loans on real estate [Member] | Commercial [Member] | Allowance for Loan Losses [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Individually Evaluated for Impairment	438	829
Allowance for Loan Losses, Collectively Evaluated for Impairment	2,442	2,219
Allowance for Loan Losses, Total	2,880	3,048
Mortgage loans on real estate [Member] | Commercial [Member] | Recorded Investment in Loans [Member]
Non-covered loans evaluated for impairment
Recorded Investment in Loans, Individually Evaluated for Impairment	16,383	20,780
Recorded Investment in Loans, Collectively Evaluated for Impairment	225,309	199,691
Total Loans Receivable	241,692	220,471
Mortgage loans on real estate [Member] | Construction and land development [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Total	4,690	5,729	10,039
Total Loans Receivable	64,304	75,691
Mortgage loans on real estate [Member] | Construction and land development [Member] | Allowance for Loan Losses [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Individually Evaluated for Impairment	2,189	1,792
Allowance for Loan Losses, Collectively Evaluated for Impairment	2,501	3,937
Allowance for Loan Losses, Total	4,690	5,729
Mortgage loans on real estate [Member] | Construction and land development [Member] | Recorded Investment in Loans [Member]
Non-covered loans evaluated for impairment
Recorded Investment in Loans, Individually Evaluated for Impairment	15,806	22,538
Recorded Investment in Loans, Collectively Evaluated for Impairment	48,498	53,153
Total Loans Receivable	64,304	75,691
Mortgage loans on real estate [Member] | Second mortgages [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Total	261	296	406
Total Loans Receivable	7,569	8,129
Mortgage loans on real estate [Member] | Second mortgages [Member] | Allowance for Loan Losses [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Individually Evaluated for Impairment	39	105
Allowance for Loan Losses, Collectively Evaluated for Impairment	222	191
Allowance for Loan Losses, Total	261	296
Mortgage loans on real estate [Member] | Second mortgages [Member] | Recorded Investment in Loans [Member]
Non-covered loans evaluated for impairment
Recorded Investment in Loans, Individually Evaluated for Impairment	282	418
Recorded Investment in Loans, Collectively Evaluated for Impairment	7,287	7,711
Total Loans Receivable	7,569	8,129
Mortgage loans on real estate [Member] | Multifamily [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Total	272	224	260
Total Loans Receivable	22,018	19,746
Mortgage loans on real estate [Member] | Multifamily [Member] | Allowance for Loan Losses [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	272	224
Allowance for Loan Losses, Total	272	224
Mortgage loans on real estate [Member] | Multifamily [Member] | Recorded Investment in Loans [Member]
Non-covered loans evaluated for impairment
Recorded Investment in Loans, Individually Evaluated for Impairment
Recorded Investment in Loans, Collectively Evaluated for Impairment	22,018	19,746
Total Loans Receivable	22,018	19,746
Mortgage loans on real estate [Member] | Agriculture [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Total	44	25	266
Total Loans Receivable	10,527	11,444
Mortgage loans on real estate [Member] | Agriculture [Member] | Allowance for Loan Losses [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Individually Evaluated for Impairment	8	2
Allowance for Loan Losses, Collectively Evaluated for Impairment	36	23
Allowance for Loan Losses, Total	44	25
Mortgage loans on real estate [Member] | Agriculture [Member] | Recorded Investment in Loans [Member]
Non-covered loans evaluated for impairment
Recorded Investment in Loans, Individually Evaluated for Impairment	55	330
Recorded Investment in Loans, Collectively Evaluated for Impairment	10,472	11,114
Total Loans Receivable	10,527	11,444
Commercial loans [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Total	1,812	1,810	2,691
Total Loans Receivable	73,415	72,149
Commercial loans [Member] | Allowance for Loan Losses [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Individually Evaluated for Impairment	104	308
Allowance for Loan Losses, Collectively Evaluated for Impairment	1,708	1,502
Allowance for Loan Losses, Total	1,812	1,810
Commercial loans [Member] | Recorded Investment in Loans [Member]
Non-covered loans evaluated for impairment
Recorded Investment in Loans, Individually Evaluated for Impairment	971	1,250
Recorded Investment in Loans, Collectively Evaluated for Impairment	72,444	70,899
Total Loans Receivable	73,415	72,149
Consumer installment loans [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Total	231	241	257
Total Loans Receivable	7,442	8,461
Consumer installment loans [Member] | Allowance for Loan Losses [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Individually Evaluated for Impairment	14	32
Allowance for Loan Losses, Collectively Evaluated for Impairment	217	209
Allowance for Loan Losses, Total	231	241
Consumer installment loans [Member] | Recorded Investment in Loans [Member]
Non-covered loans evaluated for impairment
Recorded Investment in Loans, Individually Evaluated for Impairment	142	348
Recorded Investment in Loans, Collectively Evaluated for Impairment	7,300	8,113
Total Loans Receivable	7,442	8,461
All other loans [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Total	15	11	75
Total Loans Receivable	1,565	1,659
All other loans [Member] | Allowance for Loan Losses [Member]
Non-covered loans evaluated for impairment
Allowance for Loan Losses, Individually Evaluated for Impairment		1
Allowance for Loan Losses, Collectively Evaluated for Impairment	15	10
Allowance for Loan Losses, Total	15	11
All other loans [Member] | Recorded Investment in Loans [Member]
Non-covered loans evaluated for impairment
Recorded Investment in Loans, Individually Evaluated for Impairment		127
Recorded Investment in Loans, Collectively Evaluated for Impairment	1,565	1,532
Total Loans Receivable	$ 1,565	$ 1,659

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Computation of earnings per share

(dollars and shares in thousands, except per share data)	Net Income (Loss) (Numerator)			Weighted Average Shares (Denominator)		Per Common Share Amount
For the three months ended September 30, 2012
Shares issued					21,644
Unissued vested restricted stock					7
Basic EPS	$	1,533			21,651	$	0.07
Effect of dilutive stock awards		—			92		—
Diluted EPS	$	1,533			21,743	$	0.07
For the three months ended September 30, 2011
Basic EPS	$	1,150			21,628	$	0.05
Effect of dilutive stock awards		—			—		—
Diluted EPS	$	1,150			21,628	$	0.05
For the nine months ended September 30, 2012
Shares issued					21,633
Unissued vested restricted stock					7
Basic EPS	$	3,181			21,640	$	0.15
Effect of dilutive stock awards		—			51		—
Diluted EPS	$	3,181			21,691	$	0.15
For the nine months ended September 30, 2011
Basic EPS	$	(70	)		21,544	$	(0.00	)
Effect of dilutive stock awards		—			—		—
Diluted EPS	$	(70	)		21,544	$	(0.00	)

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Fair Values of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2012

Fair Values of Assets and Liabilities [Abstract]

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis (dollars in thousands).

	September 30, 2012
	Total		Level 1		Level 2		Level 3
Investment securities available for sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	110,899	$	105,743	$	5,156	$	—
U.S. Gov’t sponsored agencies		509		—		509		—
State, county, and municipal		105,738		657		105,081		—
Corporate and other bonds		6,608		264		6,344		—
Mortgage backed – U.S. Gov’t agencies		17,236		—		17,236		—
Mortgage backed – U.S. Gov’t sponsored agencies		15,404		—		15,404		—
Total investment securities available for sale		256,394		106,664		149,730		—
Loans held for resale		1,736		—		1,736		—
Total assets at fair value	$	258,130	$	106,664	$	151,466	$	—
Total liabilities at fair value	$	—	$	—	$	—	$	—

	December 31, 2011
	Total		Level 1		Level 2		Level 3
Investment securities available for sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	7,414	$	2,099	$	5,315	$	—
U.S. Gov’t sponsored agencies		1,033		—		1,033		—
State, county and municipal		62,043		1,821		60,222		—
Corporate and other bonds		4,631		—		4,631		—
Mortgage backed – U.S. Gov’t agencies		74,093		—		74,093		—
Mortgage backed – U.S. Gov’t sponsored agencies		83,550		—		83,550		—
Total investment securities available for sale		232,764		3,920		228,844		—
Loans held for resale		580		—		580		—
Total assets at fair value	$	233,344	$	3,920	$	229,424	$	—
Total liabilities at fair value	$	—	$	—	$	—	$	—

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

For assets measured at fair value on a nonrecurring basis in 2012 and still held on the consolidated balance sheet at September 30, 2012, the following table provides the fair value measures by level of valuation assumptions used for those assets.

	September 30, 2012
	Total		Level 1		Level 2		Level 3
Impaired loans, non-covered	$	17,358	$	—	$	2,394	$	14,964
Other real estate owned (OREO), non-covered		11,896		—		—		11,896
Other real estate owned (OREO), covered		2,943		—		106		2,837
Total assets at fair value	$	32,197	$	—	$	2,500	$	29,697
Total liabilities at fair value	$	—	$	—	$	—	$	—

	December 31, 2011
	Total		Level 1		Level 2		Level 3
Impaired loans, non-covered	$	22,082	$	308	$	8,857	$	12,917
Other real estate owned (OREO), non-covered		10,252		—		—		10,252
Other real estate owned (OREO), covered		5,764		—		533		5,231
Total assets at fair value	$	38,098	$	308	$	9,390	$	28,400
Total liabilities at fair value	$	—	$	—	$	—	$	—

Summary of fair value of financial instruments

This table excludes financial instruments for which the carrying value approximates fair value.

	September 30, 2012
(dollars in thousands)	Carrying Value		Estimated  Fair Value		Level 1		Level 2		Level 3
Financial assets:
Securities held to maturity	$	48,689	$	52,013	$	—	$	52,013	$	—
Loans, non-covered		545,229		549,978		—		549,978		—
Loans, covered		88,665		100,464		—		—		100,464
FDIC indemnification asset		36,191		18,575		—		—		18,575
Financial liabilities:
Interest-bearing deposits		862,368		844,501		—		844,501		—
Borrowings		54,124		54,847		—		54,847		—
	December 31, 2011
(dollars in thousands)	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Securities held to maturity	$	64,422	$	68,585	$	—	$	68,585	$	—
Loans, non-covered		529,883		522,960		—		522,960		—
Loans, covered		96,785		99,008		—		—		99,008
FDIC indemnification asset		42,641		22,892		—		—		22,892
Financial liabilities:
Interest-bearing deposits		868,538		870,909		—		870,909		—
Borrowings		41,124		45,002		—		45,002		—

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Other Intangibles (Details Textual) (USD $) In Millions, unless otherwise specified				9 Months Ended
	May 31, 2008 Core Deposit Intangibles [Member]	Sep. 30, 2012 Georgia [Member]	Sep. 30, 2012 Maryland [Member]	Sep. 30, 2012 Maximum [Member] Core Deposit Intangibles [Member]	Sep. 30, 2012 Minimum [Member] Core Deposit Intangibles [Member]
Other Intangibles (Textual) [Abstract]
Core deposit intangible assets are amortized over the expected period				9 years	2 years 7 months 6 days
Core deposit intangible assets	$ 15.0	$ 3.2	$ 2.2

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Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) (Details 7) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Non-covered loans by credit quality indicator
Total loans	$ 559,724	$ 544,950
Pass [Member]
Non-covered loans by credit quality indicator
Total loans	473,212	417,340
Special Mention [Member]
Non-covered loans by credit quality indicator
Total loans	43,422	75,736
Substandard [Member]
Non-covered loans by credit quality indicator
Total loans	43,090	51,744
Doubtful [Member]
Non-covered loans by credit quality indicator
Total loans		130
Mortgage loans on real estate [Member]
Non-covered loans by credit quality indicator
Total loans	477,302	462,681
Mortgage loans on real estate [Member] | Pass [Member]
Non-covered loans by credit quality indicator
Total loans	393,310	339,292
Mortgage loans on real estate [Member] | Special Mention [Member]
Non-covered loans by credit quality indicator
Total loans	42,016	73,518
Mortgage loans on real estate [Member] | Substandard [Member]
Non-covered loans by credit quality indicator
Total loans	41,976	49,804
Mortgage loans on real estate [Member] | Doubtful [Member]
Non-covered loans by credit quality indicator
Total loans		67
Mortgage loans on real estate [Member] | Residential 1-4 family [Member]
Non-covered loans by credit quality indicator
Total loans	131,192	127,200
Mortgage loans on real estate [Member] | Residential 1-4 family [Member] | Pass [Member]
Non-covered loans by credit quality indicator
Total loans	113,504	107,926
Mortgage loans on real estate [Member] | Residential 1-4 family [Member] | Special Mention [Member]
Non-covered loans by credit quality indicator
Total loans	8,235	10,519
Mortgage loans on real estate [Member] | Residential 1-4 family [Member] | Substandard [Member]
Non-covered loans by credit quality indicator
Total loans	9,453	8,688
Mortgage loans on real estate [Member] | Residential 1-4 family [Member] | Doubtful [Member]
Non-covered loans by credit quality indicator
Total loans		67
Mortgage loans on real estate [Member] | Commercial [Member]
Non-covered loans by credit quality indicator
Total loans	241,692	220,471
Mortgage loans on real estate [Member] | Commercial [Member] | Pass [Member]
Non-covered loans by credit quality indicator
Total loans	203,939	162,744
Mortgage loans on real estate [Member] | Commercial [Member] | Special Mention [Member]
Non-covered loans by credit quality indicator
Total loans	21,372	39,506
Mortgage loans on real estate [Member] | Commercial [Member] | Substandard [Member]
Non-covered loans by credit quality indicator
Total loans	16,381	18,221
Mortgage loans on real estate [Member] | Commercial [Member] | Doubtful [Member]
Non-covered loans by credit quality indicator
Total loans
Mortgage loans on real estate [Member] | Construction and land development [Member]
Non-covered loans by credit quality indicator
Total loans	64,304	75,691
Mortgage loans on real estate [Member] | Construction and land development [Member] | Pass [Member]
Non-covered loans by credit quality indicator
Total loans	37,663	34,391
Mortgage loans on real estate [Member] | Construction and land development [Member] | Special Mention [Member]
Non-covered loans by credit quality indicator
Total loans	10,835	18,876
Mortgage loans on real estate [Member] | Construction and land development [Member] | Substandard [Member]
Non-covered loans by credit quality indicator
Total loans	15,806	22,424
Mortgage loans on real estate [Member] | Construction and land development [Member] | Doubtful [Member]
Non-covered loans by credit quality indicator
Total loans
Mortgage loans on real estate [Member] | Second mortgages [Member]
Non-covered loans by credit quality indicator
Total loans	7,569	8,129
Mortgage loans on real estate [Member] | Second mortgages [Member] | Pass [Member]
Non-covered loans by credit quality indicator
Total loans	6,890	7,135
Mortgage loans on real estate [Member] | Second mortgages [Member] | Special Mention [Member]
Non-covered loans by credit quality indicator
Total loans	397	576
Mortgage loans on real estate [Member] | Second mortgages [Member] | Substandard [Member]
Non-covered loans by credit quality indicator
Total loans	282	418
Mortgage loans on real estate [Member] | Second mortgages [Member] | Doubtful [Member]
Non-covered loans by credit quality indicator
Total loans
Mortgage loans on real estate [Member] | Multifamily [Member]
Non-covered loans by credit quality indicator
Total loans	22,018	19,746
Mortgage loans on real estate [Member] | Multifamily [Member] | Pass [Member]
Non-covered loans by credit quality indicator
Total loans	20,841	16,199
Mortgage loans on real estate [Member] | Multifamily [Member] | Special Mention [Member]
Non-covered loans by credit quality indicator
Total loans	1,177	3,547
Mortgage loans on real estate [Member] | Multifamily [Member] | Substandard [Member]
Non-covered loans by credit quality indicator
Total loans
Mortgage loans on real estate [Member] | Multifamily [Member] | Doubtful [Member]
Non-covered loans by credit quality indicator
Total loans
Mortgage loans on real estate [Member] | Agriculture [Member]
Non-covered loans by credit quality indicator
Total loans	10,527	11,444
Mortgage loans on real estate [Member] | Agriculture [Member] | Pass [Member]
Non-covered loans by credit quality indicator
Total loans	10,473	10,897
Mortgage loans on real estate [Member] | Agriculture [Member] | Special Mention [Member]
Non-covered loans by credit quality indicator
Total loans		494
Mortgage loans on real estate [Member] | Agriculture [Member] | Substandard [Member]
Non-covered loans by credit quality indicator
Total loans	54	53
Mortgage loans on real estate [Member] | Agriculture [Member] | Doubtful [Member]
Non-covered loans by credit quality indicator
Total loans
Commercial loans [Member]
Non-covered loans by credit quality indicator
Total loans	73,415	72,149
Commercial loans [Member] | Pass [Member]
Non-covered loans by credit quality indicator
Total loans	71,254	68,511
Commercial loans [Member] | Special Mention [Member]
Non-covered loans by credit quality indicator
Total loans	1,189	1,983
Commercial loans [Member] | Substandard [Member]
Non-covered loans by credit quality indicator
Total loans	972	1,597
Commercial loans [Member] | Doubtful [Member]
Non-covered loans by credit quality indicator
Total loans		58
Consumer installment loans [Member]
Non-covered loans by credit quality indicator
Total loans	7,442	8,461
Consumer installment loans [Member] | Pass [Member]
Non-covered loans by credit quality indicator
Total loans	7,083	7,878
Consumer installment loans [Member] | Special Mention [Member]
Non-covered loans by credit quality indicator
Total loans	217	235
Consumer installment loans [Member] | Substandard [Member]
Non-covered loans by credit quality indicator
Total loans	142	343
Consumer installment loans [Member] | Doubtful [Member]
Non-covered loans by credit quality indicator
Total loans		5
All other loans [Member]
Non-covered loans by credit quality indicator
Total loans	1,565	1,659
All other loans [Member] | Pass [Member]
Non-covered loans by credit quality indicator
Total loans	1,565	1,659
All other loans [Member] | Special Mention [Member]
Non-covered loans by credit quality indicator
Total loans
All other loans [Member] | Substandard [Member]
Non-covered loans by credit quality indicator
Total loans
All other loans [Member] | Doubtful [Member]
Non-covered loans by credit quality indicator
Total loans

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Defined Benefit Plan (Tables)

9 Months Ended

Sep. 30, 2012

Defined Benefit Plan [Abstract]

Components of Net Periodic Benefit Cost

Components of Net Periodic Benefit Cost

	Three months ended						Nine months ended
(dollars in thousands)	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Service cost	$	—		$	—		$	—		$	—
Interest cost		62			65			187			195
Expected return on plan assets		(102	)		(75	)		(306	)		(225	)
Recognized net actuarial (gain) loss		16			—			49			—
Net periodic benefit cost	$	(24	)	$	(10	)	$	(70	)	$	(30	)

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Nature of Banking Activities and Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2012 Office
Nature of Banking Activities and Significant Accounting Policies (Textual) [Abstract]
Community Bankers Trust Corporation incorporation date	Apr. 06, 2005
Number of full-service offices	24
Chesapeake Bay to Richmond [Member]
Nature of Banking Activities and Significant Accounting Policies (Textual) [Abstract]
Number of full-service offices	13
Baltimore to Washington Corridor [Member]
Nature of Banking Activities and Significant Accounting Policies (Textual) [Abstract]
Number of full-service offices	7
Georgia Metropolitan Market [Member]
Nature of Banking Activities and Significant Accounting Policies (Textual) [Abstract]
Number of full-service offices	4

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Nature of Banking Activities and Significant Accounting Policies

9 Months Ended

Sep. 30, 2012

Nature of Banking Activities and Significant Accounting Policies [Abstract]

NATURE OF BANKING ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES

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

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.

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

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Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) (Details 3) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Reconciliation of impaired loans to nonaccrual loans
Nonaccruals	$ 25,730	$ 28,542
Total impaired	26,853	35,158
Trouble debt restructure [Member]
Reconciliation of impaired loans to nonaccrual loans
Still accruing	851	5,946
Substandard [Member]
Reconciliation of impaired loans to nonaccrual loans
Still accruing	272	546
Doubtful [Member]
Reconciliation of impaired loans to nonaccrual loans
Still accruing		$ 124

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FDIC Agreements and FDIC Indemnification Asset (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Summary balances of FDIC indemnification asset
Beginning Balance	$ 42,641	$ 58,369
Increases:
Writedown of OREO property to FMV	428	1,522
Decreases:
Net amortization of premium	(5,444)	(10,364)
Reclassifications to FDIC receivable:
Net loan charge offs and recoveries	780	(2,655)
OREO sales	432	(2,211)
Reimbursements requested from FDIC	(222)	(2,020)
Reforecasted Change in Anticipated Expected Losses
Ending Balance	36,191	42,641
Anticipated Expected Losses [Member]
Summary balances of FDIC indemnification asset
Beginning Balance	28,713	46,250
Increases:
Writedown of OREO property to FMV	535	1,902
Reclassifications to FDIC receivable:
Net loan charge offs and recoveries	975	(3,319)
OREO sales	540	(2,764)
Reimbursements requested from FDIC	(277)	(2,525)
Reforecasted Change in Anticipated Expected Losses	(3,902)	(10,831)
Ending Balance	23,554	28,713
Estimated Loss Sharing Value [Member]
Summary balances of FDIC indemnification asset
Beginning Balance	22,971	37,000
Increases:
Writedown of OREO property to FMV	428	1,522
Reclassifications to FDIC receivable:
Net loan charge offs and recoveries	780	(2,655)
OREO sales	432	(2,211)
Reimbursements requested from FDIC	(222)	(2,020)
Reforecasted Change in Anticipated Expected Losses	(3,122)	(8,665)
Ending Balance	18,843	22,971
Amortizable Premium (Discount) at Present Value [Member]
Summary balances of FDIC indemnification asset
Beginning Balance	19,670	21,369
Decreases:
Net amortization of premium	(5,444)	(10,364)
Reclassifications to FDIC receivable:
Reforecasted Change in Anticipated Expected Losses	3,122	8,665
Ending Balance	$ 17,348	$ 19,670

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Consolidated Statements of Financial Condition (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
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
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

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Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) (Details 8) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012 Loan	Sep. 30, 2011 Loan	Sep. 30, 2012 Contract	Sep. 30, 2011 Loan
Loans modified as TDRs
Number of Contracts	2	0	7	6
Pre-Modification Outstanding Recorded Investment	3,273		5,664	6,800
Post-Modification Outstanding Recorded Investment	3,071		5,462	5,342
Mortgage loans on real estate [Member]
Loans modified as TDRs
Number of Contracts	2		6	5
Pre-Modification Outstanding Recorded Investment	3,273		5,590	6,240
Post-Modification Outstanding Recorded Investment	3,071		5,388	4,811
Mortgage loans on real estate [Member] | Residential 1-4 family [Member]
Loans modified as TDRs
Number of Contracts	1		3	3
Pre-Modification Outstanding Recorded Investment	294		765	722
Post-Modification Outstanding Recorded Investment	294		765	679
Mortgage loans on real estate [Member] | Commercial [Member]
Loans modified as TDRs
Number of Contracts	1		2	2
Pre-Modification Outstanding Recorded Investment	2,979		4,150	5,518
Post-Modification Outstanding Recorded Investment	2,777		3,948	4,132
Mortgage loans on real estate [Member] | Construction and land development [Member]
Loans modified as TDRs
Number of Contracts			1
Pre-Modification Outstanding Recorded Investment			675
Post-Modification Outstanding Recorded Investment			675
Commercial loans [Member]
Loans modified as TDRs
Number of Contracts			1	1
Pre-Modification Outstanding Recorded Investment			74	560
Post-Modification Outstanding Recorded Investment			74	531

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Consolidated Statements of Shareholders' Equity (USD $) In Thousands, unless otherwise specified	Total	Preferred Stock	Warrants	Discount on Preferred Stock	Common Stock	Additional Paid in Capital	Retained Deficit	Accumulated Other Comprehensive Income
Beginning Balance at Dec. 31, 2010	$ 107,127	$ 17,680	$ 1,037	$ (660)	$ 215	$ 143,999	$ (54,999)	$ (145)
Beginning Balance, shares at Dec. 31, 2010					21,468
Increase (Decrease) in Stockholders' Equity
Amortization of preferred stock warrants				206			(206)
Issuance of common stock	183				1	182
Issuance of common stock, shares					160
Issuance of stock options	62					62
Net income	1,444						1,444
Other comprehensive income	2,364							2,364
Ending Balance at Dec. 31, 2011	111,180	17,680	1,037	(454)	216	144,243	(53,761)	2,219
Ending Balance, shares at Dec. 31, 2011					21,628
Increase (Decrease) in Stockholders' Equity
Amortization of preferred stock warrants				165			(165)
Issuance of common stock	66				1	65
Issuance of common stock, shares					29
Dividends paid on preferred stock	(1,989)						(1,989)
Issuance of stock options	43					43
Net income	4,009						4,009
Other comprehensive income	(171)							(171)
Ending Balance at Sep. 30, 2012	$ 113,138	$ 17,680	$ 1,037	$ (289)	$ 217	$ 144,351	$ (51,906)	$ 2,048
Ending Balance, shares at Sep. 30, 2012					21,657

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Fair Values of Assets and Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	$ 256,394	$ 232,764
Loans held for resale	1,736	580
Total assets at fair value	258,130	233,344
Total liabilities at fair value	0
U.S. Treasury issue and other U.S. Gov't agencies [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	110,899	7,414
U.S. Gov't sponsored agencies [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	509	1,033
State, county and municipal [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	105,737	62,043
Corporate and other bonds [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	6,608	4,631
Mortgage backed - U.S. Gov't agencies [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	17,237	74,093
Mortgage backed - U.S. Gov't sponsored agencies [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	15,404	83,550
Level 1 [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	106,664	3,920
Loans held for resale	0
Total assets at fair value	106,664	3,920
Total liabilities at fair value	0
Level 1 [Member] | U.S. Treasury issue and other U.S. Gov't agencies [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	105,743	2,099
Level 1 [Member] | U.S. Gov't sponsored agencies [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	0
Level 1 [Member] | State, county and municipal [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	657	1,821
Level 1 [Member] | Corporate and other bonds [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	264
Level 1 [Member] | Mortgage backed - U.S. Gov't agencies [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	0
Level 1 [Member] | Mortgage backed - U.S. Gov't sponsored agencies [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	0
Level 2 [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	149,730	228,844
Loans held for resale	1,736	580
Total assets at fair value	151,466	229,424
Total liabilities at fair value	0
Level 2 [Member] | U.S. Treasury issue and other U.S. Gov't agencies [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	5,156	5,315
Level 2 [Member] | U.S. Gov't sponsored agencies [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	509	1,033
Level 2 [Member] | State, county and municipal [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	105,081	60,222
Level 2 [Member] | Corporate and other bonds [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	6,344	4,631
Level 2 [Member] | Mortgage backed - U.S. Gov't agencies [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	17,236	74,093
Level 2 [Member] | Mortgage backed - U.S. Gov't sponsored agencies [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	15,404	83,550
Level 3 [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	0
Loans held for resale	0
Total assets at fair value	0
Total liabilities at fair value	0
Level 3 [Member] | U.S. Treasury issue and other U.S. Gov't agencies [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	0
Level 3 [Member] | U.S. Gov't sponsored agencies [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	0
Level 3 [Member] | State, county and municipal [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	0
Level 3 [Member] | Corporate and other bonds [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	0
Level 3 [Member] | Mortgage backed - U.S. Gov't agencies [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	0
Level 3 [Member] | Mortgage backed - U.S. Gov't sponsored agencies [Member]
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Total investment securities available for sale	$ 0

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Securities (Details 3) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Summary of fair value and gross unrealized losses for securities
Fair Value, Less than 12 Months	$ 119,109	$ 69,381
Unrealized Loss, Less than 12 months	(1,411)	(629)
Fair Value, 12 Months or More	1,202
Unrealized Loss, 12 Months or More	3
Fair Value, Total	120,311	69,381
Unrealized Loss, Total	(1,414)	(629)
U.S. Treasury issue and other U.S. Gov't agencies [Member]
Summary of fair value and gross unrealized losses for securities
Fair Value, Less than 12 Months	78,539
Unrealized Loss, Less than 12 months	(858)
Fair Value, 12 Months or More
Unrealized Loss, 12 Months or More
Fair Value, Total	78,539
Unrealized Loss, Total	(858)
U.S. Gov't sponsored agencies [Member]
Summary of fair value and gross unrealized losses for securities
Fair Value, Less than 12 Months
Unrealized Loss, Less than 12 months
Fair Value, 12 Months or More
Unrealized Loss, 12 Months or More
Fair Value, Total
Unrealized Loss, Total
State, county and municipal [Member]
Summary of fair value and gross unrealized losses for securities
Fair Value, Less than 12 Months	23,615	1,242
Unrealized Loss, Less than 12 months	(363)	(7)
Fair Value, 12 Months or More
Unrealized Loss, 12 Months or More
Fair Value, Total	23,615	1,242
Unrealized Loss, Total	(363)	(7)
Corporate and other bonds [Member]
Summary of fair value and gross unrealized losses for securities
Fair Value, Less than 12 Months	1,484	4,380
Unrealized Loss, Less than 12 months	(8)	(171)
Fair Value, 12 Months or More	501
Unrealized Loss, 12 Months or More	1
Fair Value, Total	1,985	4,380
Unrealized Loss, Total	(9)	(171)
Mortgage backed - U.S. Gov't agencies [Member]
Summary of fair value and gross unrealized losses for securities
Fair Value, Less than 12 Months	3,420	38,324
Unrealized Loss, Less than 12 months	(49)	(257)
Fair Value, 12 Months or More	701
Unrealized Loss, 12 Months or More	2
Fair Value, Total	4,121	38,324
Unrealized Loss, Total	(51)	(257)
Mortgage backed - U.S. Gov't sponsored agencies [Member]
Summary of fair value and gross unrealized losses for securities
Fair Value, Less than 12 Months	12,051	25,435
Unrealized Loss, Less than 12 months	(133)	(194)
Fair Value, 12 Months or More
Unrealized Loss, 12 Months or More
Fair Value, Total	12,051	25,435
Unrealized Loss, Total	$ (133)	$ (194)

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Defined Benefit Plan (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Components of Net Periodic Benefit Cost
Service cost	$ 0		$ 0
Interest cost	62	65	187	195
Expected return on plan assets	(102)	(75)	(306)	(225)
Recognized net actuarial (gain) loss	16		49
Net periodic benefit cost	$ (24)	$ (10)	$ (70)	$ (30)

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Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) (Tables)

9 Months Ended

Sep. 30, 2012

Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) [Abstract]

Summary of 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

Summary of information related to impaired loans

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

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

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

Non-covered nonaccruals by loan category

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

Reconciliation of impaired loans to nonaccrual loans

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

Age analysis of past due status of non-covered loans by category

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

	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

Allowance for loan losses on non-covered loans by loan category

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

	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

Non-covered loans evaluated for impairment

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

	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 by credit quality indicator

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

Loans modified as TDRs

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

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

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

Information relating to TDRs that resulted in default

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

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Securities (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012 Security	Sep. 30, 2011	Sep. 30, 2012 Security	Sep. 30, 2011	Dec. 31, 2011
Securities (Additional Textual) [Abstract]
Investments held on impairment losses other than temporary in nature	$ 0	$ 0	$ 0	$ 0
Number of securities held	75		75
Amortized costs of securities	80,500,000		80,500,000		34,100,000
Securities purchased from single issuer	$ 0		$ 0		$ 0
U.S. Government Agency Guarantees	72		72
Investment Grade corporate obligations	3		3
U.S. Treasury issue and other U.S. Gov't agencies [Member]
Securities (Textual) [Abstract]
Percentage contributed by U.S. Treasury issue and other U.S. Government agencies to consolidated shareholders' equity	more than 10%		more than 10%		more than 10%

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FDIC Agreements and FDIC Indemnification Asset (Tables)

9 Months Ended

Sep. 30, 2012

FDIC Agreements and FDIC Indemnification Asset [Abstract]

Summary balances of FDIC indemnification asset

The following table presents the balances of the FDIC indemnification asset at September 30, 2012 and December 31, 2011 (dollars in thousands):

	Anticipated Expected Losses			Estimated Loss Sharing Value			Amortizable Premium (Discount) at Present Value			FDIC Indemnification Asset Total
January 1, 2011		46,250			37,000			21,369			58,369
Increases:
Writedown of OREO property to FMV		1,902			1,522						1,522
Decreases:
Net amortization of premium								(10,364	)		(10,364	)
Reclassifications to FDIC receivable:
Net loan charge offs and recoveries		(3,319	)		(2,655	)					(2,655	)
OREO sales		(2,764	)		(2,211	)					(2,211	)
Reimbursements requested from FDIC		(2,525	)		(2,020	)					(2,020	)
Reforecasted Change in Anticipated Expected Losses		(10,831	)		(8,665	)		8,665			—
December 31, 2011	$	28,713		$	22,971		$	19,670		$	42,641
Increases:
Writedown of OREO property to FMV		535			428						428
Decreases:
Net amortization of premium								(5,444	)		(5,444	)
Reclassifications to FDIC receivable:
Net loan charge offs and recoveries		(975	)		(780	)					(780	)
OREO sales		(540	)		(432	)					(432	)
Reimbursements requested from FDIC		(277	)		(222	)					(222	)
Reforecasted Change in Anticipated Expected Losses		(3,902	)		(3,122	)		3,122			—
September 30, 2012	$	23,554		$	18,843		$	17,348		$	36,191

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Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 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
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

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Consolidated Statements of Financial Condition (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Consolidated Statements of Financial Condition [Abstract]
Securities held to maturity, fair value	$ 52,013	$ 68,585
Allowance for loan losses, non-covered loans	14,303	14,835
Allowance for loan losses, covered loans	$ 456	$ 776
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares issued	17,680	17,680
Preferred stock, shares outstanding	17,680	17,680
Common stock, shares authorized	200,000,000	200,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	21,656,951	21,656,951
Common stock, shares outstanding	21,627,549	21,627,549

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Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

EARNINGS PER SHARE

10. EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed using the weighted average number of common shares outstanding during the period, including the effect of all potentially dilutive common shares outstanding attributable to stock instruments.

(dollars and shares in thousands, except per share data)	Net Income (Loss) (Numerator)			Weighted Average Shares (Denominator)		Per Common Share Amount
For the three months ended September 30, 2012
Shares issued					21,644
Unissued vested restricted stock					7
Basic EPS	$	1,533			21,651	$	0.07
Effect of dilutive stock awards		—			92		—
Diluted EPS	$	1,533			21,743	$	0.07
For the three months ended September 30, 2011
Basic EPS	$	1,150			21,628	$	0.05
Effect of dilutive stock awards		—			—		—
Diluted EPS	$	1,150			21,628	$	0.05
For the nine months ended September 30, 2012
Shares issued					21,633
Unissued vested restricted stock					7
Basic EPS	$	3,181			21,640	$	0.15
Effect of dilutive stock awards		—			51		—
Diluted EPS	$	3,181			21,691	$	0.15
For the nine months ended September 30, 2011
Basic EPS	$	(70	)		21,544	$	(0.00	)
Effect of dilutive stock awards		—			—		—
Diluted EPS	$	(70	)		21,544	$	(0.00	)

Excluded from the computation of diluted earnings per share were 1.3 million and 1.1 million common shares issuable under awards, options or warrants, during the three and nine months ended September 30, 2012 and 2011 respectively, because their inclusion would be anti-dilutive.

In December 2008, the Company issued 17,680 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A to the United States Department of Treasury in connection with the Company’s participation in the Treasury’s TARP Capital Purchase Program. Cumulative dividends on the Series A Preferred Stock are payable at 5% per annum through December 19, 2013, and at a rate of 9% per annum thereafter. The Company may defer dividend payments, but the dividend is a cumulative dividend that accrues for payment in the future. Deferred dividends also accrue interest at the same rate as the dividend. The failure to pay dividends for six dividend periods triggers the right for the holder of the Series A Preferred Stock to appoint two directors to the Company’s board.

As of September 30, 2012, the Company is current in its payment of dividends, each in the amount of $221,000, with respect to the Series A Preferred Stock.

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Document and Entity Information	9 Months Ended
	Sep. 30, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	Community Bankers Trust Corp
Entity Central Index Key	0001323648
Document Type	10-Q
Document Period End Date	Sep. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	21,656,951

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Defined Benefit Plan

9 Months Ended

Sep. 30, 2012

Defined Benefit Plan [Abstract]

DEFINED BENEFIT PLAN

11. DEFINED BENEFIT PLAN

On May 31, 2008, the Company adopted the Bank of Essex noncontributory defined benefit pension plan for all full-time pre-merger Bank employees over 21 years of age. Benefits are generally based upon years of service and the employees’ compensation. The Company funds pension costs in accordance with the funding provisions of the Employee Retirement Income Security Act. The Company has frozen the plan benefits for all participants effective December 31, 2010, resulting in a curtailment gain included in pension expense of $210,000 in 2010.

Components of Net Periodic Benefit Cost

	Three months ended						Nine months ended
(dollars in thousands)	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Service cost	$	—		$	—		$	—		$	—
Interest cost		62			65			187			195
Expected return on plan assets		(102	)		(75	)		(306	)		(225	)
Recognized net actuarial (gain) loss		16			—			49			—
Net periodic benefit cost	$	(24	)	$	(10	)	$	(70	)	$	(30	)

At September 30, 2012, employer contributions totalled $2.0 million for the plan year. The Company is considering terminating the pension plan in the future. No determination has been made and the Company has not determined the financial impact of the termination of the plan.

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Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 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

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FDIC Agreements and FDIC Indemnification Asset

9 Months Ended

Sep. 30, 2012

FDIC Agreements and FDIC Indemnification Asset [Abstract]

FDIC AGREEMENTS AND FDIC INDEMNIFICATION ASSET

5. FDIC AGREEMENTS AND FDIC INDEMNIFICATION ASSET

On January 30, 2009, the Company entered into a Purchase and Assumption Agreement with the FDIC to assume all of the deposits and certain other liabilities and acquire substantially all assets of SFSB. Under the shared loss agreements that are part of that agreement, the FDIC will reimburse the Bank for 80% of losses arising from covered loans and foreclosed real estate assets, on the first $118 million in losses on such covered loans and foreclosed real estate assets, and for 95% of losses on covered loans and foreclosed real estate assets thereafter. Under the shared loss agreements, a “loss” on a covered loan or foreclosed real estate is defined generally as a realized loss incurred through a permitted disposition, foreclosure, short-sale or restructuring of the covered loan or foreclosed real estate. The reimbursements for losses on single family one-to-four residential mortgage loans are to be made quarterly through January 2014, and the reimbursements for losses on other covered assets are to be made quarterly through January 2019. Prior to the third quarter of 2011, reimbursements for losses on single family one-to-four mortgage loans were made monthly. The shared loss agreements provide for indemnification from the first dollar of losses without any threshold requirement. The reimbursable losses from the FDIC are based on the book value of the relevant loan as determined by the FDIC at the date of the transaction, January 30, 2009. New loans made after that date are not covered by the shared loss agreements. The fair value of the shared loss agreements is detailed below.

The Company is accounting for the shared loss agreements as an indemnification asset pursuant to the guidance in FASB ASC 805, Business Combinations. The FDIC indemnification asset is required to be measured in the same manner as the asset or liability to which it relates. The FDIC indemnification asset is measured separately from the covered loans and other real estate owned assets (OREO) because it is not contractually embedded in the covered loan and other real estate owned assets and is not transferable should the Company choose to dispose of them. Fair value was estimated using projected cash flows available for loss sharing based on the credit adjustments estimated for each loan pool and other real estate owned and the loss sharing percentages outlined in the shared loss agreements with the FDIC. These cash flows were discounted to reflect the uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC.

Because the acquired loans are subject to shared loss agreements and a corresponding indemnification asset exists to represent the value of expected payments from the FDIC, increases and decreases in loan accretable yield due to changing loss expectations will also have an impact to the valuation of the FDIC indemnification asset. Improvement in loss expectations will typically increase loan accretable yield and decrease the value of the FDIC indemnification asset and, in some instances, result in an amortizable premium on the FDIC indemnification asset. Increases in loss expectations will typically be recognized as impairment in the current period through allowance for loan losses, resulting in additional noninterest income for the amount of the increase in the FDIC indemnification asset.

In addition to the premium amortization, the balance of the FDIC indemnification asset is affected by expected payments from the FDIC. Under the terms of the shared loss agreements, the FDIC will reimburse the Company for loss events incurred related to the covered loan portfolio. These events include such things as future writedowns due to decreases in the fair market value of OREO, net loan charge offs and recoveries, and net gains and losses on OREO sales.

The following table presents the balances of the FDIC indemnification asset at September 30, 2012 and December 31, 2011 (dollars in thousands):

	Anticipated Expected Losses			Estimated Loss Sharing Value			Amortizable Premium (Discount) at Present Value			FDIC Indemnification Asset Total
January 1, 2011		46,250			37,000			21,369			58,369
Increases:
Writedown of OREO property to FMV		1,902			1,522						1,522
Decreases:
Net amortization of premium								(10,364	)		(10,364	)
Reclassifications to FDIC receivable:
Net loan charge offs and recoveries		(3,319	)		(2,655	)					(2,655	)
OREO sales		(2,764	)		(2,211	)					(2,211	)
Reimbursements requested from FDIC		(2,525	)		(2,020	)					(2,020	)
Reforecasted Change in Anticipated Expected Losses		(10,831	)		(8,665	)		8,665			—
December 31, 2011	$	28,713		$	22,971		$	19,670		$	42,641
Increases:
Writedown of OREO property to FMV		535			428						428
Decreases:
Net amortization of premium								(5,444	)		(5,444	)
Reclassifications to FDIC receivable:
Net loan charge offs and recoveries		(975	)		(780	)					(780	)
OREO sales		(540	)		(432	)					(432	)
Reimbursements requested from FDIC		(277	)		(222	)					(222	)
Reforecasted Change in Anticipated Expected Losses		(3,902	)		(3,122	)		3,122			—
September 30, 2012	$	23,554		$	18,843		$	17,348		$	36,191

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Loans Covered by FDIC Shared Loss Agreement (Covered Loans)

9 Months Ended

Sep. 30, 2012

Loans Covered by FDIC Shared Loss Agreement (Covered Loans) [Abstract]

LOANS COVERED BY FDIC SHARED LOSS AGREEMENT (COVERED LOANS)

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.

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

	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		—		—		—		—
Total covered loans	$	456	$	89,121	$	776	$	97,561

The change in the accretable yield balance for the nine months ended September 30, 2012 and the year ended December 31, 2011 is as follows (dollars in thousands):

Balance, January 1, 2011	$	75,718
Accretion		(17,525	)
Reclassification to Non-accretable Yield		(1,883	)
Balance, December 31, 2011		56,310
Accretion		(11,211	)
Reclassification from Non-accretable Yield		10,069
Balance, September 30, 2012	$	55,168

The covered loans are not classified as nonperforming assets as of September 30, 2012, as the loans are accounted for on a pooled basis, and interest income, through accretion of the difference between the carrying amount of the loans and the expected cash flows, is being recognized on all purchased loans.

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Loans Covered by FDIC Shared Loss Agreement (Covered Loans) (Tables)

9 Months Ended

Sep. 30, 2012

Loans Covered by FDIC Shared Loss Agreement (Covered Loans) [Abstract]

Summary of covered loans

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	%

Allowance for loan losses on covered loans

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

	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

Summary of covered loans collectively evaluated for impairment in allowance for loan losses

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		—		—		—		—
Total covered loans	$	456	$	89,121	$	776	$	97,561

Summary of changes in the accretable yield

The change in the accretable yield balance for the nine months ended September 30, 2012 and the year ended December 31, 2011 is as follows (dollars in thousands):

Balance, January 1, 2011	$	75,718
Accretion		(17,525	)
Reclassification to Non-accretable Yield		(1,883	)
Balance, December 31, 2011		56,310
Accretion		(11,211	)
Reclassification from Non-accretable Yield		10,069
Balance, September 30, 2012	$	55,168

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Contingencies

9 Months Ended

Sep. 30, 2012

Contingencies [Abstract]

CONTINGENCIES

12. CONTINGENCIES

See the Annual Report on Form 10-K for the period ended December 31, 2011 for information with respect to transaction-based bonus awards that the Company approved for the Company’s then chief strategic officer in the first quarter of 2010 and paid in the first and second quarters of 2010. There have been no developments to the issues disclosed in the 2010 Form 10-K and, as of November 14, 2012, these issues remain open.

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Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2012

Accumulated Other Comprehensive Income [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME

8. ACCUMULATED OTHER COMPREHENSIVE INCOME

The following tables present activity in accumulated other comprehensive income for the three and nine months ended September 30, 2012 and 2011 (dollars in thousands):

	Three months ended September 30, 2012
	Unrealized Gain/(Loss) on Securities			Defined Benefit Pension Plan			Total Other Comprehensive Income (Loss)
Beginning balance	$	3,839		$	(1,038	)	$	2,801
Current period other comprehensive income loss		(753	)		—			(753	)
Ending balance	$	3,086		$	(1,038	)	$	2,048
	Three months ended September 30, 2011
	Unrealized Gain/(Loss) on Securities			Defined Benefit Pension Plan			Total Other Comprehensive Income (Loss)
Beginning balance	$	2,296		$	—		$	2,296
Current period other comprehensive income		227			—			227
Ending balance	$	2,523		$	—		$	2,523
	Nine months ended September 30, 2012
	Unrealized Gain/(Loss) on Securities			Defined Benefit Pension Plan			Total Other Comprehensive Income (Loss)
Beginning balance	$	3,257		$	(1,038	)	$	2,219
Current period other comprehensive income loss		(171	)		—			(171	)
Ending balance	$	3,086		$	(1,038	)	$	2,048

	Nine months ended September 30, 2011
	Unrealized Gain/Loss on Securities			Defined Benefit Pension Plan		Total Other Comprehensive Income
Beginning balance	$	(145	)	$	—	$	(145	)
Current period other comprehensive income		2,668			—		2,668
Ending balance	$	2,523		$	—	$	2,523

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Fair Values of Assets and Liabilities (Details 1) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Impaired loans, non-covered	$ 17,358	$ 22,082
Other real estate owned (OREO), non-covered	11,896	10,252
Other real estate owned (OREO), covered	2,943	5,764
Total assets at fair value	32,197	38,098
Total liabilities at fair value	0
Level 1 [Member]
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Impaired loans, non-covered	0	308
Other real estate owned (OREO), non-covered	0
Other real estate owned (OREO), covered	0
Total assets at fair value	0	308
Total liabilities at fair value	0
Level 2 [Member]
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Impaired loans, non-covered	2,394	8,857
Other real estate owned (OREO), non-covered	0
Other real estate owned (OREO), covered	106	533
Total assets at fair value	2,500	9,390
Total liabilities at fair value	0
Level 3 [Member]
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Impaired loans, non-covered	14,964	12,917
Other real estate owned (OREO), non-covered	11,896	10,252
Other real estate owned (OREO), covered	2,837	5,231
Total assets at fair value	29,697	28,400
Total liabilities at fair value	$ 0

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Other Intangibles

9 Months Ended

Sep. 30, 2012

Other Intangibles [Abstract]

OTHER INTANGIBLES

6. OTHER INTANGIBLES

Core deposit intangible assets are amortized over the period of expected benefit, ranging from 2.6 to 9 years. Core deposit intangibles are recognized, amortized and evaluated for impairment as required by FASB ASC 350, Intangibles. As a result of the mergers with TransCommunity Financial Corporation (TFC), and BOE Financial Services of Virginia, Inc. (BOE) on May 31, 2008, the Company recorded $15.0 million in core deposit intangible assets. Core deposit intangibles resulting from the Georgia and Maryland transactions, in 2008 and 2009, respectively, equaled $3.2 million and $2.2 million, respectively, and will be amortized over approximately 9 years.

Other intangible assets are presented in the following table (dollars in thousands):

	Core Deposit Intangibles
Balance, January 1, 2011	$	14,819
Amortization		(2,261	)
Balance, December 31, 2011		12,558
Amortization		(1,695	)
Balance, September 30, 2012	$	10,863

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Deposits

9 Months Ended

Sep. 30, 2012

Deposits [Abstract]

DEPOSITS

7. DEPOSITS

The following table provides interest-bearing deposit information, by type, as of September 30, 2012 and December 31, 2011 (dollars in thousands):

	September 30, 2012		December 31, 2011
NOW	$	117,120	$	128,758
MMDA		113,288		115,397
Savings		76,499		69,872
Time deposits less than $100,000		292,374		326,383
Time deposits $100,000 and over		263,087		228,128
Total interest-bearing deposits	$	862,368	$	868,538

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Fair Values of Assets and Liabilities

9 Months Ended

Sep. 30, 2012

Fair Values of Assets and Liabilities [Abstract]

FAIR VALUES OF ASSETS AND LIABILITIES

9. FAIR VALUES OF ASSETS AND LIABILITIES

FASB ASC 820, Fair Value Measurements and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs and also establishes a fair value hierarchy that prioritizes the valuation inputs into three broad levels. The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:

• Level 1—Valuation is based upon quoted prices for identical instruments traded in active markets.

• Level 2—Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3—Valuation is determined using model-based techniques with significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of third party pricing services, option pricing models, discounted cash flow models and similar techniques.

FASB ASC 825, Financial Instruments, allows an entity the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. The Company has not made any material ASC 825 elections as of September 30, 2012.

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

The Company utilizes fair value measurements to record adjustments to certain assets to determine fair value disclosures. Securities available for sale and loans held for sale are recorded at fair value on a recurring basis. The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis (dollars in thousands).

	September 30, 2012
	Total		Level 1		Level 2		Level 3
Investment securities available for sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	110,899	$	105,743	$	5,156	$	—
U.S. Gov’t sponsored agencies		509		—		509		—
State, county, and municipal		105,738		657		105,081		—
Corporate and other bonds		6,608		264		6,344		—
Mortgage backed – U.S. Gov’t agencies		17,236		—		17,236		—
Mortgage backed – U.S. Gov’t sponsored agencies		15,404		—		15,404		—
Total investment securities available for sale		256,394		106,664		149,730		—
Loans held for resale		1,736		—		1,736		—
Total assets at fair value	$	258,130	$	106,664	$	151,466	$	—
Total liabilities at fair value	$	—	$	—	$	—	$	—

	December 31, 2011
	Total		Level 1		Level 2		Level 3
Investment securities available for sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	7,414	$	2,099	$	5,315	$	—
U.S. Gov’t sponsored agencies		1,033		—		1,033		—
State, county and municipal		62,043		1,821		60,222		—
Corporate and other bonds		4,631		—		4,631		—
Mortgage backed – U.S. Gov’t agencies		74,093		—		74,093		—
Mortgage backed – U.S. Gov’t sponsored agencies		83,550		—		83,550		—
Total investment securities available for sale		232,764		3,920		228,844		—
Loans held for resale		580		—		580		—
Total assets at fair value	$	233,344	$	3,920	$	229,424	$	—
Total liabilities at fair value	$	—	$	—	$	—	$	—

Investment securities available for sale

Investment securities available for sale are recorded at fair value each reporting period. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions.

The Company utilizes a third party vendor to provide fair value data for purposes of determining the fair value of its available for sale securities portfolio. The third party vendor uses a reputable pricing company for security market data. The third party vendor has controls and edits in place for month-to-month market checks and zero pricing, and a Statement on Standards for Attestation Engagements No. 16 report is obtained from the third party vendor on an annual basis. The Company makes no adjustments to the pricing service data received for its securities available for sale.

Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. Securities classified as Level 3 include asset-backed securities in less liquid markets.

Loans held for resale

The carrying amounts of loans held for resale approximate fair value.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The Company is also required to measure and recognize certain other financial assets at fair value on a nonrecurring basis on the consolidated balance sheet. For assets measured at fair value on a nonrecurring basis in 2012 and still held on the consolidated balance sheet at September 30, 2012, the following table provides the fair value measures by level of valuation assumptions used for those assets.

	September 30, 2012
	Total		Level 1		Level 2		Level 3
Impaired loans, non-covered	$	17,358	$	—	$	2,394	$	14,964
Other real estate owned (OREO), non-covered		11,896		—		—		11,896
Other real estate owned (OREO), covered		2,943		—		106		2,837
Total assets at fair value	$	32,197	$	—	$	2,500	$	29,697
Total liabilities at fair value	$	—	$	—	$	—	$	—

	December 31, 2011
	Total		Level 1		Level 2		Level 3
Impaired loans, non-covered	$	22,082	$	308	$	8,857	$	12,917
Other real estate owned (OREO), non-covered		10,252		—		—		10,252
Other real estate owned (OREO), covered		5,764		—		533		5,231
Total assets at fair value	$	38,098	$	308	$	9,390	$	28,400
Total liabilities at fair value	$	—	$	—	$	—	$	—

Impaired loans, non-covered

Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures the impairment in accordance with FASB ASC 310, Receivables. The fair value of impaired loans is estimated using one of several methods, including collateral value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceeds the recorded investments in such loans. At September 30, 2012 and December 31, 2011, a majority of total impaired loans were evaluated based on the fair value of the collateral. The Company frequently obtains appraisals prepared by external professional appraisers for classified loans greater than $250,000 when the most recent appraisal is greater than 12 months old. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the impaired loan within Level 2.

The Company may also identify collateral deterioration based on current market sales data, including price and absorption, as well as input from real estate sales professionals and developers, county or city tax assessments, market data and on-site inspections by Company personnel. Internally prepared estimates generally result from current market data and actual sales data related to the Company’s collateral or where the collateral is located. When management determines that the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the impaired loan as nonrecurring Level 3. In instances where an appraisal received subsequent to an internally prepared estimate reflects a higher collateral value, management does not revise the carrying amount. Impaired loans can also be evaluated for impairment using the present value of expected future cash flows discounted at the loan’s effective interest rate. The measurement of impaired loans using future cash flows discounted at the loan’s effective interest rate rather than the market rate of interest rate is not a fair value measurement and is therefore excluded from fair value disclosure requirements. Reviews of classified loans are performed by management on a quarterly basis.

Other real estate owned, covered and non-covered

Other real estate owned (OREO) assets are adjusted to fair value less estimated selling costs upon transfer of the related loans to OREO property. Subsequent to the transfer, valuations are periodically performed by management and the assets are carried at the lower of carrying value or fair value less estimated selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the foreclosed asset within Level 2. When an appraised value is not available or management determines that the fair value of the collateral is further impaired below the appraised value due to such things as absorption rates and market conditions, the Company records the foreclosed asset within Level 3 of the fair value hierarchy.

Fair Value of Financial Instruments

FASB ASC 825, Financial Instruments, requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring or nonrecurring basis. FASB ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

The following reflects the fair value of financial instruments, whether or not recognized on the consolidated balance sheet, at fair value measures by level of valuation assumptions used for those assets. This table excludes financial instruments for which the carrying value approximates fair value.

	September 30, 2012
(dollars in thousands)	Carrying Value		Estimated  Fair Value		Level 1		Level 2		Level 3
Financial assets:
Securities held to maturity	$	48,689	$	52,013	$	—	$	52,013	$	—
Loans, non-covered		545,229		549,978		—		549,978		—
Loans, covered		88,665		100,464		—		—		100,464
FDIC indemnification asset		36,191		18,575		—		—		18,575
Financial liabilities:
Interest-bearing deposits		862,368		844,501		—		844,501		—
Borrowings		54,124		54,847		—		54,847		—
	December 31, 2011
(dollars in thousands)	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Securities held to maturity	$	64,422	$	68,585	$	—	$	68,585	$	—
Loans, non-covered		529,883		522,960		—		522,960		—
Loans, covered		96,785		99,008		—		—		99,008
FDIC indemnification asset		42,641		22,892		—		—		22,892
Financial liabilities:
Interest-bearing deposits		868,538		870,909		—		870,909		—
Borrowings		41,124		45,002		—		45,002		—

The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying balance sheets at amounts other than fair value as of September 30, 2012. The Company applied the provisions of ASC 820 to the fair value measurements of financial instruments not recognized on the consolidated balance sheet at fair value. The provisions requiring the Company to maximize the use of observable inputs and to measure fair value using a notion of exit price were factored into the Company’s selection of inputs into its established valuation techniques.

Financial Assets

Cash and cash equivalents

The carrying amounts of cash and due from banks, interest-bearing bank deposits, and federal funds sold approximate fair value.

Securities held for investment

For securities held for investment, fair values are based on quoted market prices or dealer quotes.

Restricted securities

The carrying value of restricted securities approximates their fair value based on the redemption provisions of the respective issuer.

Loans held for resale

The carrying amounts of loans held for resale approximate fair value.

Loans not covered by FDIC shared loss agreement (non-covered loans)

For certain homogeneous categories of loans, such as some residential mortgages and other consumer loans, fair value is estimated using the quoted market prices for securities backed by similar loans, adjusted for differences in loan characteristics. The fair value of other types of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.

Loans covered by FDIC shared loss agreement (covered loans)

Fair values for covered loans are based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, term of loan and whether or not the loans are amortizing. Loans were pooled together according to similar characteristics and were treated in the aggregate when applying various valuation techniques. The discount rates used for loans are based on the rates used at acquisition (which were based on market rates for new originations of comparable loans) adjusted for any material changes in interest rates since acquisition. Increases in cash flow expectations since acquisition resulted in estimated fair value being higher than carrying value. The increase in cash flows is also reflected in a transfer from unaccretable yield to accretable yield as disclosed in Note 4.

FDIC indemnification asset

Loss sharing assets are measured separately from the related covered assets as they are not contractually embedded in the covered assets and are not transferable with the assets should the Company choose to dispose of them. Fair value is estimated using projected cash flows related to the obligations under the shared loss agreements based on the expected reimbursements for losses and the applicable loss sharing percentages. These expected reimbursements do not include reimbursable amounts related to future covered expenditures. These cash flows were discounted to reflect the uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC. A reduction in loss expectations has resulted in the estimated fair value of the FDIC indemnification asset being lower than its carrying value. This creates a premium that is amortized over the life of the asset and is reflected in Note 5.

Accrued interest receivable

The carrying amounts of accrued interest receivable approximate fair value.

Financial Liabilities

Noninterest-bearing deposits

The carrying amount of noninterest-bearing deposits approximates fair value.

Interest-bearing deposits

The fair value of NOW accounts, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities.

Long-term borrowings

The fair values of the Company’s long-term borrowings, such as FHLB advances, are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements.

Accrued interest payable

The carrying amounts of accrued interest payable approximate fair value.

Off-balance sheet financial instruments

The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of stand-by letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. The Company’s off-balance sheet commitments are funded at current market rates at the date they are drawn upon. It is management’s opinion that the fair value of these commitments would approximate their carrying value, if drawn upon.

The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change, and that change may be either favorable or unfavorable. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk.

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Earnings Per Share (Details Textual) (USD $)	1 Months Ended	3 Months Ended		9 Months Ended
	Dec. 31, 2008 Payment	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Earnings Per Share (Textual) [Abstract]
Cumulative Perpetual Preferred Stock Series A		17,680		17,680		17,680
Earnings Per Share (Additional Textual) [Abstract]
Anti-dilutive shares		1,300,000	1,100,000	1,300,000	1,100,000
Failure of dividend payments for periods	6
Series A Preferred Stock [Member]
Earnings Per Share (Textual) [Abstract]
Dividends payable through, December 19, 2013	5.00%
No of Directors, Preferred Stock Series A	2
Dividends payable thereafter	9.00%
Deferred dividend payment		221,000		221,000
Cumulative Perpetual Preferred Stock of Series A [Member]
Earnings Per Share (Textual) [Abstract]
Cumulative Perpetual Preferred Stock Series A	17,680

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Defined Benefit Plan (Details Textual) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2010	May 31, 2008
Defined Benefit Plan (Textual) [Abstract]
Minimum Eligibility Criteria of full-time pre-merger Bank employees for Bank of Essex noncontributory defined benefit pension plan			21 years
Curtailment gain in pension expense		$ 210,000
Employer contribution for the plan	$ 2,000,000

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Earnings Per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Computation of earnings per share
Shares issued, Weighted Average Shares (Denominator)	21,644		21,633
Unissued vested restricted stock, Weighted Average Shares (Denominator)	7		7
Basic EPS, Net Income (loss) (Numerator)	$ 1,533	$ 1,150	$ 3,181	$ (70)
Basic EPS , Weighted Average Shares (Denominator)	21,651	21,628	21,640	21,544
Basic EPS, Per Common Share Amount	$ 0.07	$ 0.05	$ 0.15	$ 0.00
Effect of dilutive stock awards, Net Income (loss) (Numerator)	0		0
Effect of dilutive stock awards, Weighted Average Shares (Denominator)	92		51
Effect of dilutive stock awards, Per Common Share Amount	$ 0.00		$ 0.00
Diluted EPS, Net Income (loss) (Numerator)	$ 1,533	$ 1,150	$ 3,181	$ (70)
Diluted EPS, Weighted Average Shares (Denominator)	21,743	21,628	21,691	21,544
Diluted EPS, Per Common Share Amount	$ 0.07	$ 0.05	$ 0.15	$ 0.00

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Securities (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Summary of realized gains and losses on sale of securities
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

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Loans Covered by FDIC Shared Loss Agreement (Covered Loans) (Details 3) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Summary of changes in the accretable yield
Beginning balance	$ 56,310	$ 75,718
Accretion	(11,211)	(17,525)
Reclassification to Non-accretable Yield		(1,883)
Reclassification from Non-accretable Yield	10,069
Ending balance	$ 55,168	$ 56,310

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Securities (Tables)

9 Months Ended

Sep. 30, 2012

Securities [Abstract]

Amortized costs and fair values of securities available for sale and held to maturity

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

Amortized cost and fair value of securities by contractual maturity

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

Summary of realized gains and losses on sale of securities

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

Summary of fair value and gross unrealized losses for securities

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	)

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Deposits (Tables)

9 Months Ended

Sep. 30, 2012

Deposits [Abstract]

Summary of interest-bearing deposits

The following table provides interest-bearing deposit information, by type, as of September 30, 2012 and December 31, 2011 (dollars in thousands):

	September 30, 2012		December 31, 2011
NOW	$	117,120	$	128,758
MMDA		113,288		115,397
Savings		76,499		69,872
Time deposits less than $100,000		292,374		326,383
Time deposits $100,000 and over		263,087		228,128
Total interest-bearing deposits	$	862,368	$	868,538

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Loans Covered by FDIC Shared Loss Agreement (Covered Loans) (Details 1) (Covered Loans [Member], USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Allowance for loan losses on covered loans
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Beginning Balance	$ 776	$ 829
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision Allocation	(250)
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Charges Offs	(349)	(53)
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Recoveries	279
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Ending Balance	456	776
Mortgage loans on real estate [Member]
Allowance for loan losses on covered loans
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Beginning Balance	776	829
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision Allocation	(250)
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Charges Offs	(349)	(53)
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Recoveries	279
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Ending Balance	456	776
Commercial loans [Member]
Allowance for loan losses on covered loans
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision Allocation
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Charges Offs
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Recoveries
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Ending Balance
Consumer installment loans [Member]
Allowance for loan losses on covered loans
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision Allocation
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Charges Offs
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Recoveries
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Ending Balance
All other loans [Member]
Allowance for loan losses on covered loans
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision Allocation
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Charges Offs
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Recoveries
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Ending Balance
Residential 1-4 family [Member] | Mortgage loans on real estate [Member]
Allowance for loan losses on covered loans
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Beginning Balance	473	526
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision Allocation	(274)
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Charges Offs	(12)	(53)
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Recoveries	9
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Ending Balance	196	473
Commercial [Member] | Mortgage loans on real estate [Member]
Allowance for loan losses on covered loans
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Beginning Balance	303	303
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision Allocation	(43)
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Charges Offs
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Recoveries
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Ending Balance	260	303
Construction and land development [Member] | Mortgage loans on real estate [Member]
Allowance for loan losses on covered loans
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision Allocation	4
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Charges Offs	(22)
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Recoveries	18
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Ending Balance
Second mortgages [Member] | Mortgage loans on real estate [Member]
Allowance for loan losses on covered loans
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision Allocation
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Charges Offs
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Recoveries
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Ending Balance
Multifamily [Member] | Mortgage loans on real estate [Member]
Allowance for loan losses on covered loans
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision Allocation	63
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Charges Offs	(315)
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Recoveries	252
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Ending Balance
Agriculture [Member] | Mortgage loans on real estate [Member]
Allowance for loan losses on covered loans
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision Allocation
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Charges Offs
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Recoveries
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Ending Balance

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Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) (Details 4) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Age analysis of past due status of non-covered loans by category
30-89 Days Past Due	$ 1,683	$ 6,641
Greater than 90 Days Past Due	25,815	30,547
Total Past Due	27,498	37,188
Current	532,226	507,762
Total Loans Receivable	559,724	544,950
Recorded Investment > 90 Days Past Due and Accruing	85	2,005
Mortgage loans on real estate [Member]
Age analysis of past due status of non-covered loans by category
30-89 Days Past Due	1,624	6,461
Greater than 90 Days Past Due	24,987	29,472
Total Past Due	26,611	35,933
Current	450,691	426,748
Total Loans Receivable	477,302	462,681
Recorded Investment > 90 Days Past Due and Accruing	85	2,005
Mortgage loans on real estate [Member] | Residential 1-4 family [Member]
Age analysis of past due status of non-covered loans by category
30-89 Days Past Due	1,200	1,743
Greater than 90 Days Past Due	5,474	5,320
Total Past Due	6,674	7,063
Current	124,518	120,137
Total Loans Receivable	131,192	127,200
Recorded Investment > 90 Days Past Due and Accruing
Mortgage loans on real estate [Member] | Commercial [Member]
Age analysis of past due status of non-covered loans by category
30-89 Days Past Due	55	1,085
Greater than 90 Days Past Due	8,916	11,192
Total Past Due	8,971	12,277
Current	232,721	208,194
Total Loans Receivable	241,692	220,471
Recorded Investment > 90 Days Past Due and Accruing		2,005
Mortgage loans on real estate [Member] | Construction and land development [Member]
Age analysis of past due status of non-covered loans by category
30-89 Days Past Due	350	2,924
Greater than 90 Days Past Due	10,355	12,718
Total Past Due	10,705	15,642
Current	53,599	60,049
Total Loans Receivable	64,304	75,691
Recorded Investment > 90 Days Past Due and Accruing	37
Mortgage loans on real estate [Member] | Second mortgages [Member]
Age analysis of past due status of non-covered loans by category
30-89 Days Past Due	19	709
Greater than 90 Days Past Due	188	189
Total Past Due	207	898
Current	7,362	7,231
Total Loans Receivable	7,569	8,129
Recorded Investment > 90 Days Past Due and Accruing	48
Mortgage loans on real estate [Member] | Multifamily [Member]
Age analysis of past due status of non-covered loans by category
30-89 Days Past Due
Greater than 90 Days Past Due
Total Past Due
Current	22,018	19,746
Total Loans Receivable	22,018	19,746
Recorded Investment > 90 Days Past Due and Accruing
Mortgage loans on real estate [Member] | Agriculture [Member]
Age analysis of past due status of non-covered loans by category
30-89 Days Past Due
Greater than 90 Days Past Due	54	53
Total Past Due	54	53
Current	10,473	11,391
Total Loans Receivable	10,527	11,444
Recorded Investment > 90 Days Past Due and Accruing
Commercial loans [Member]
Age analysis of past due status of non-covered loans by category
30-89 Days Past Due	8	87
Greater than 90 Days Past Due	703	1,003
Total Past Due	711	1,090
Current	72,704	71,059
Total Loans Receivable	73,415	72,149
Recorded Investment > 90 Days Past Due and Accruing
Consumer installment loans [Member]
Age analysis of past due status of non-covered loans by category
30-89 Days Past Due	51	93
Greater than 90 Days Past Due	125	72
Total Past Due	176	165
Current	7,266	8,296
Total Loans Receivable	7,442	8,461
Recorded Investment > 90 Days Past Due and Accruing
All other loans [Member]
Age analysis of past due status of non-covered loans by category
30-89 Days Past Due
Greater than 90 Days Past Due
Total Past Due
Current	1,565	1,659
Total Loans Receivable	1,565	1,659
Recorded Investment > 90 Days Past Due and Accruing

XML

Consolidated Statements of Comprehensive Income (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Consolidated Statements of Comprehensive Income [Abstract]
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

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Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans)

9 Months Ended

Sep. 30, 2012

Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) [Abstract]

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

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.

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

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

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.

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

	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

	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

	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.

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

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

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.

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Accumulated Other Comprehensive Income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Summary of accumulated other comprehensive income
Beginning balance, Unrealized Gain/(Loss) on Securities	$ 3,839	$ 2,296	$ 3,257	$ (145)	$ (145)
Beginning balance, Defined Benefit Pension Plan	(1,038)		(1,038)
Beginning balance, Total Other Comprehensive Income (Loss)	2,801	2,296	2,219	(145)	(145)
Current period other comprehensive income loss Unrealized Gain/(Loss) on Securities	(753)	227	(171)	2,668
Current period other comprehensive income loss Defined Benefit Pension Plan	0		0
Current period other comprehensive income loss, Total Other comprehensive income (Loss)	(753)	227	(171)	2,668	2,364
Ending balance, Unrealized Gain/(Loss) on Securities	3,086	2,523	3,086	2,523	3,257
Ending balance, Defined Benefit Pension Plan	(1,038)		(1,038)		(1,038)
Ending balance, Total Other Comprehensive Income (Loss)	$ 2,048	$ 2,523	$ 2,048	$ 2,523	$ 2,219

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Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2012

Accumulated Other Comprehensive Income [Abstract]

Summary of accumulated other comprehensive income

The following tables present activity in accumulated other comprehensive income for the three and nine months ended September 30, 2012 and 2011 (dollars in thousands):

	Three months ended September 30, 2012
	Unrealized Gain/(Loss) on Securities			Defined Benefit Pension Plan			Total Other Comprehensive Income (Loss)
Beginning balance	$	3,839		$	(1,038	)	$	2,801
Current period other comprehensive income loss		(753	)		—			(753	)
Ending balance	$	3,086		$	(1,038	)	$	2,048
	Three months ended September 30, 2011
	Unrealized Gain/(Loss) on Securities			Defined Benefit Pension Plan			Total Other Comprehensive Income (Loss)
Beginning balance	$	2,296		$	—		$	2,296
Current period other comprehensive income		227			—			227
Ending balance	$	2,523		$	—		$	2,523
	Nine months ended September 30, 2012
	Unrealized Gain/(Loss) on Securities			Defined Benefit Pension Plan			Total Other Comprehensive Income (Loss)
Beginning balance	$	3,257		$	(1,038	)	$	2,219
Current period other comprehensive income loss		(171	)		—			(171	)
Ending balance	$	3,086		$	(1,038	)	$	2,048

	Nine months ended September 30, 2011
	Unrealized Gain/Loss on Securities			Defined Benefit Pension Plan		Total Other Comprehensive Income
Beginning balance	$	(145	)	$	—	$	(145	)
Current period other comprehensive income		2,668			—		2,668
Ending balance	$	2,523		$	—	$	2,523

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Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Summary of information related to impaired loans
Recorded investment in loans	$ 26,853		$ 26,853		$ 35,158
Unpaid Principal Balance	30,670		30,670		43,206
Related Allowance	2,966		2,966		2,765
Average Recorded Investment	27,757	45,271	30,740	46,780
With an allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans	17,880		17,880		14,294
Unpaid Principal Balance	21,178		21,178		17,571
Related Allowance	2,966		2,966		2,765
Average Recorded Investment	17,307	12,118	15,553	17,886
With no related allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans	8,973		8,973		20,864
Unpaid Principal Balance	9,492		9,492		25,635
Related Allowance
Average Recorded Investment	10,450	33,153	15,187	28,894
Mortgage loans on real estate [Member]
Summary of information related to impaired loans
Recorded investment in loans	26,016		26,016		33,994
Unpaid Principal Balance	29,748		29,748		41,651
Related Allowance	2,861		2,861		2,446
Average Recorded Investment	26,898	43,662	29,752	44,814
Mortgage loans on real estate [Member] | With an allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans	17,124		17,124		13,356
Unpaid Principal Balance	20,342		20,342		16,626
Related Allowance	2,861		2,861		2,446
Average Recorded Investment	16,723	10,848	14,844	16,346
Mortgage loans on real estate [Member] | With no related allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans	8,892		8,892		20,638
Unpaid Principal Balance	9,406		9,406		25,025
Related Allowance
Average Recorded Investment	10,175	32,814	14,908	28,468
Mortgage loans on real estate [Member] | Residential 1-4 family [Member]
Summary of information related to impaired loans
Recorded investment in loans	6,381		6,381		6,515
Unpaid Principal Balance	7,154		7,154		7,062
Related Allowance	819		819		1,000
Average Recorded Investment	6,843	7,861	6,828	9,285
Mortgage loans on real estate [Member] | Residential 1-4 family [Member] | With an allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans	4,703		4,703		3,432
Unpaid Principal Balance	5,438		5,438		3,497
Related Allowance	819		819		1,000
Average Recorded Investment	4,570	3,660	4,240	4,552
Mortgage loans on real estate [Member] | Residential 1-4 family [Member] | With no related allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans	1,678		1,678		3,083
Unpaid Principal Balance	1,716		1,716		3,565
Related Allowance
Average Recorded Investment	2,273	4,201	2,588	4,733
Mortgage loans on real estate [Member] | Commercial [Member]
Summary of information related to impaired loans
Recorded investment in loans	8,917		8,917		14,212
Unpaid Principal Balance	9,448		9,448		14,816
Related Allowance	323		323		713
Average Recorded Investment	9,631	12,429	11,677	11,711
Mortgage loans on real estate [Member] | Commercial [Member] | With an allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans	2,168		2,168		6,240
Unpaid Principal Balance	2,266		2,266		6,362
Related Allowance	323		323		713
Average Recorded Investment	3,581	3,406	4,871	4,586
Mortgage loans on real estate [Member] | Commercial [Member] | With no related allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans	6,749		6,749		7,972
Unpaid Principal Balance	7,182		7,182		8,454
Related Allowance
Average Recorded Investment	6,050	9,023	6,806	7,125
Mortgage loans on real estate [Member] | Construction and land development [Member]
Summary of information related to impaired loans
Recorded investment in loans	10,493		10,493		13,012
Unpaid Principal Balance	12,625		12,625		19,505
Related Allowance	1,683		1,683		653
Average Recorded Investment	10,214	23,124	11,006	23,428
Mortgage loans on real estate [Member] | Construction and land development [Member] | With an allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans	10,028		10,028		3,541
Unpaid Principal Balance	12,117		12,117		6,611
Related Allowance	1,683		1,683		653
Average Recorded Investment	8,428	3,574	5,566	6,924
Mortgage loans on real estate [Member] | Construction and land development [Member] | With no related allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans	465		465		9,471
Unpaid Principal Balance	508		508		12,894
Related Allowance
Average Recorded Investment	1,786	19,550	5,440	16,504
Mortgage loans on real estate [Member] | Second mortgages [Member]
Summary of information related to impaired loans
Recorded investment in loans	171		171		202
Unpaid Principal Balance	176		176		215
Related Allowance	27		27		80
Average Recorded Investment	156	195	187	278
Mortgage loans on real estate [Member] | Second mortgages [Member] | With an allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans	171		171		143
Unpaid Principal Balance	176		176		156
Related Allowance	27		27		80
Average Recorded Investment	117	155	153	185
Mortgage loans on real estate [Member] | Second mortgages [Member] | With no related allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans					59
Unpaid Principal Balance					59
Related Allowance
Average Recorded Investment	39	40	34	93
Mortgage loans on real estate [Member] | Multifamily [Member]
Summary of information related to impaired loans
Recorded investment in loans
Unpaid Principal Balance
Related Allowance
Average Recorded Investment
Mortgage loans on real estate [Member] | Multifamily [Member] | With an allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans
Unpaid Principal Balance
Related Allowance
Average Recorded Investment
Mortgage loans on real estate [Member] | Multifamily [Member] | With no related allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans
Unpaid Principal Balance
Related Allowance
Average Recorded Investment
Mortgage loans on real estate [Member] | Agriculture [Member]
Summary of information related to impaired loans
Recorded investment in loans	54		54		53
Unpaid Principal Balance	345		345		53
Related Allowance	9		9
Average Recorded Investment	54	53	54	112
Mortgage loans on real estate [Member] | Agriculture [Member] | With an allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans	54		54
Unpaid Principal Balance	345		345
Related Allowance	9		9
Average Recorded Investment	27	53	14	99
Mortgage loans on real estate [Member] | Agriculture [Member] | With no related allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans					53
Unpaid Principal Balance					53
Related Allowance
Average Recorded Investment	27		40	13
Commercial loans [Member]
Summary of information related to impaired loans
Recorded investment in loans	702		702		1,077
Unpaid Principal Balance	774		774		1,467
Related Allowance	92		92		306
Average Recorded Investment	699	1,521	838	1,861
Commercial loans [Member] | With an allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans	631		631		868
Unpaid Principal Balance	698		698		874
Related Allowance	92		92		306
Average Recorded Investment	434	1,192	579	1,466
Commercial loans [Member] | With no related allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans	71		71		209
Unpaid Principal Balance	76		76		593
Related Allowance
Average Recorded Investment	265	329	259	395
Consumer installment loans [Member]
Summary of information related to impaired loans
Recorded investment in loans	135		135		87
Unpaid Principal Balance	148		148		88
Related Allowance	13		13		13
Average Recorded Investment	160	88	150	105
Consumer installment loans [Member] | With an allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans	125		125		70
Unpaid Principal Balance	138		138		71
Related Allowance	13		13		13
Average Recorded Investment	150	78	130	74
Consumer installment loans [Member] | With no related allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans	10		10		17
Unpaid Principal Balance	10		10		17
Related Allowance
Average Recorded Investment	10	10	20	31
All other loans [Member]
Summary of information related to impaired loans
Recorded investment in loans
Unpaid Principal Balance
Related Allowance
Average Recorded Investment
All other loans [Member] | With an allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans
Unpaid Principal Balance
Related Allowance
Average Recorded Investment
All other loans [Member] | With no related allowance recorded [Member]
Summary of information related to impaired loans
Recorded investment in loans
Unpaid Principal Balance
Related Allowance
Average Recorded Investment

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Nature of Banking Activities and Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2012

Nature of Banking Activities and Significant Accounting Policies [Abstract]

Fair Value Measurement

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

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.

Comprehensive Income

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.

Receivables

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

Contingencies

(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.

Loans and Debt Securities Acquired with Deteriorated Credit Quality

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”).

Business Combinations

The Company is accounting for the shared loss agreements as an indemnification asset pursuant to the guidance in FASB ASC 805, Business Combinations.

Intangibles

Core deposit intangible assets are amortized over the period of expected benefit, ranging from 2.6 to 9 years. Core deposit intangibles are recognized, amortized and evaluated for impairment as required by FASB ASC 350, Intangibles.

Financial Instruments

FASB ASC 825, Financial Instruments, allows an entity the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis.