10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

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

For the fiscal year ended December 31, 2013

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)

Virginia	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)

Registrant’s telephone number, including area code (804) 934-9999

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Stock, $0.01 par value	The NASDAQ Stock Market, LLC

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ¨    No  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ¨    No  x

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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  x

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

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

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter. $75,898,238

On February 28, 2014, there were 21,712,846 shares of the registrant’s common stock, par value $0.01, outstanding, which is the only class of the registrant’s common stock.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s definitive Proxy Statement to be used in conjunction with the registrant’s 2014 Annual Meeting of Shareholders are incorporated into Part III of this Form 10-K.

TABLE OF CONTENTS

		Page
	PART I
Item 1.	Business		3
Item 1A.	Risk Factors		11
Item 1B.	Unresolved Staff Comments		19
Item 2.	Properties		19
Item 3.	Legal Proceedings		20
Item 4.	Mine Safety Disclosures		20
	PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities		20
Item 6.	Selected Financial Data		22
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		24
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk		45
Item 8.	Financial Statements and Supplementary Data		46
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		101
Item 9A.	Controls and Procedures		101
Item 9B.	Other Information		102
	PART III
Item 10.	Directors, Executive Officers and Corporate Governance		102
Item 11.	Executive Compensation		102
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		102
Item 13.	Certain Relationships and Related Transactions, and Director Independence		102
Item 14.	Principal Accounting Fees and Services		102
	PART IV
Item 15.	Exhibits, Financial Statement Schedules		103

2

ITEM 1. BUSINESS

GENERAL

Community Bankers Trust Corporation (the “Company”) is a bank holding company that was incorporated in 2005. The Company is headquartered in Glen Allen, Virginia and is the holding company for Essex Bank (the “Bank”), a Virginia state bank with 19 full-service offices in Virginia and Maryland. The Bank also operates two loan production offices in Virginia.

The Bank was established in 1926. 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, and six are located in Maryland along the Baltimore-Washington corridor.

Prior to November 8, 2013, the Bank also had four full-service offices in Georgia. The Bank sold those offices and related deposits to Community & Southern Bank on November 8, 2013.

Essex Services, Inc. is a wholly-owned subsidiary of the Bank. Essex Services and its financial consultants offer a broad range of investment products and alternatives through an affiliation with Infinex Investments, Inc., an independent broker-dealer. It also offers insurance products through an ownership interest in Bankers Insurance, LLC, an independent insurance agency. Essex Services was formed to sell title insurance to the Bank’s mortgage loan customers.

The Company’s corporate headquarters are located at 4235 Innslake Drive, Suite 200, Glen Allen, Virginia 23060. The Company expects to relocate its corporate headquarters to 9954 Mayland Drive, Suite 2100, Richmond, Virginia 23233, on March 31, 2014. The telephone number of the corporate headquarters is (804) 934-9999.

The Company’s common stock trades on the NASDAQ Capital Market under the symbol “ESXB”.

STRATEGY

The Company’s strategy is to be recognized as the premier provider of financial services by exceeding the service expectations of all of its customers and shareholders while creating a rewarding environment for its employees. The Company will accomplish this goal while operating in a safe and sound manner to provide a desirable return to its investors.

The Company has adopted and implemented a formal strategic plan that centers on the following key issues:

• Ensuring profitable controlled growth and consistent improvement in client delivery standards

• Improving the overall risk profile of the Bank through enterprise risk management

• Solidifying strong management practices and oversight

During 2013, the Company remained focused on expanding its core operations, improving its loan ratios and increasing profits. The sale of the Georgia branches accelerated a strategic focus on growth in its core markets, as the Company consolidates into markets around its core franchise where it can gain a competitive advantage and pursue robust loan and deposit growth. The Company expects to accomplish this growth through a combination of de novo branching, expansion of loan production offices and possible acquisitions that are immediately accretive in value.

Other specific priorities, as outlined in the Company’s strategic plan, include the following matters:

• Organically growing the size of the loan portfolio

• Changing the deposit mix to more transaction-based accounts by adding additional demand deposits

• Significantly reducing costs associated with non-performing assets and other real estate owned

• Enhancing the delivery system of its fee-based products

• Continuing to control non-interest expense through better technology use and other efficiencies in processes

The Company believes that the continued successful execution on its strategies will enhance the major profit drivers of the Bank by increasing interest income and improving its efficiency and result in overall loan growth for better utilization of assets. All of these factors will lead to an increase in profitability for shareholders.

OPERATIONS

The Company’s operating strategy is delineated by business lines and by the functional support areas that help accomplish the stated goals and financial budget of the organization. A major component of future income is growth in three core business lines – retail and small business banking, commercial and industrial banking and real estate lending. These core businesses, combined with the Company’s geographic locations, dictate the market position that the Company needs to take to be successful. The majority of new

3

loan growth will occur in all three lines, although the retail segment primarily provides the funding through core deposit relationship growth.

Retail and Small Business Banking

The Company markets to consumers in geographic areas around its branch network not only through existing bricks and mortar, but also with alternative delivery mechanisms and new product development such as online banking, remote deposit capture, mobile banking and telephonic banking. In addition, the Company attracts new customers by making its service through these distributions points convenient. All of the Company’s existing markets are prime targets for expanding the consumer side of its business with full loan and deposit relationships, and the Company has restructured its retail group to accommodate growth. In addition, the Company is focused on potential growth in new market areas in which it currently operates loan production offices.

Commercial and Industrial Banking

In the commercial and industrial banking group, the Company focuses on small to mid-sized business customers (sales of $5 million to $15 million each year) who are not targeted by larger banks and for whom smaller community banks have limited expertise. The Company has an experienced team with a strong loan pipeline. The typical relationship consists of working capital lines and equipment loans with the primary deposit accounts of the customer. Most of these relationships will be new to the Company and create strong and positive growth potential.

Commercial Real Estate Lending

The Company has historically held a significant concentration in real estate loans. The current strategy is to manage the existing real estate acquisition, development and construction loans and add income producing property loans to the real estate portfolio. The Company originates both owner occupied and non-owner occupied borrowings where the cash flows provide significant debt coverage for the relationship.

COMPETITION

Within its market areas in Virginia and Maryland, the Company operates in a highly competitive environment, competing for deposits and loans with commercial corporations, savings banks and other financial institutions, including non-bank competitors, many of which possess substantially greater financial resources than those available to the Company. Many of these institutions have significantly higher lending limits than the Company. In addition, there can be no assurance that other financial institutions, with substantially greater resources than the Company, will not establish operations in its service area. The financial services industry remains highly competitive and is constantly evolving.

The activities in which the Company engages are highly competitive. Financial institutions such as credit unions, consumer finance companies, insurance companies, brokerage companies and other financial institutions with varying degrees of regulatory restrictions compete vigorously for a share of the financial services market. Brokerage and insurance companies continue to become more competitive in the financial services arena and pose an ever increasing challenge to banks. Legislative changes also greatly affect the level of competition that the Company faces. Federal legislation allows credit unions to use their expanded membership capabilities, combined with tax-free status, to compete more fiercely for traditional bank business. The tax-free status granted to credit unions provides them a significant competitive advantage. Many of the largest banks operating in Virginia and Maryland, including some of the largest banks in the country, have offices in the Company’s market areas. Many of these institutions have capital resources, broader geographic markets, and legal lending limits substantially in excess of those available to the Company. The Company faces competition from institutions that offer products and services that it does not or cannot currently offer. Some institutions with which the Company competes offer interest rate levels on loan and deposit products that the Company is unwilling to offer due to interest rate risk and overall profitability concerns. The Company expects the level of competition to increase.

Factors such as rates offered on loan and deposit products, types of products offered, and the number and location of branch offices, as well as the reputation of institutions in the market, affect competition for loans and deposits. The Company emphasizes customer service, establishing long-term relationships with its customers, thereby creating customer loyalty, and providing adequate product lines for individuals and small to medium-sized business customers.

The Company would not be materially or adversely impacted by the loss of a single customer. The Company is not dependent upon a single or a few customers.

CORPORATE HISTORY

The Company was initially formed as a special purpose acquisition company under the name “Community Bankers Acquisition Corp.” As a “Targeted Acquisition Corporation”^SM or “TAC,”^SM the Company was formed to effect a merger, capital stock exchange, asset acquisition or other similar business combination with an operating business in the banking industry. In May 2008, the Company acquired each of TransCommunity Financial Corporation, a Virginia corporation (TFC), and BOE Financial Services of Virginia, Inc., a Virginia corporation (BOE). The Company changed its corporate name in connection with the acquisitions.

4

Formed in 2001, TFC was a financial holding company and the parent company of TransCommunity Bank, N.A. Until June 2007, TFC was the holding company for four separately-chartered banking subsidiaries — Bank of Powhatan, Bank of Goochland, Bank of Louisa and Bank of Rockbridge. In June 2007, these four subsidiaries were consolidated into a new TransCommunity Bank, N.A. Each former subsidiary then operated as a division of TransCommunity Bank, but retained its name and local identity in the community that it served.

BOE was incorporated under Virginia law in 2000 to become the holding company for the Bank.

In connection with the May 2008 mergers, each of the Bank and TransCommunity Bank, N.A. became a wholly-owned subsidiary of the Company, and they were operated initially as separate banking subsidiaries. In July 2008, TransCommunity Bank was consolidated into the Bank under the Bank’s state charter. Until 2010, the former branch offices of TFC operated as separate divisions under the Bank’s charter, using the names of TFC’s former banking subsidiaries.

In November 2008, the Bank acquired certain fixed assets and assumed all deposit liabilities relating to four former branch offices of The Community Bank (TCB), a Georgia state-chartered bank, following its failure. The transaction was consummated pursuant to a Purchase and Assumption Agreement by and among the FDIC, both as Receiver for TCB and in its corporate capacity, and the Bank. The Bank sold those offices and related deposits to Community & Southern Bank on November 8, 2013.

In January 2009, the Bank acquired substantially all assets and assumed all deposit and certain other liabilities relating to seven former branch offices of Suburban Federal Savings Bank, Crofton, Maryland (SFSB), following its failure. The transaction was consummated pursuant to a Purchase and Assumption Agreement by and among the FDIC, both as Receiver for SFSB and in its corporate capacity, and the Bank. The Bank entered into a shared loss arrangement with the FDIC with respect to loans and real estate assets acquired.

On January 1, 2014, the Company completed a reincorporation from Delaware, its original state of incorporation, to Virginia. As a result of the reincorporation, the Company’s corporate affairs are now governed by Virginia law. The purpose of the reincorporation to Virginia is expected annual cost savings of over $175,000 that the Company will realize from the difference between Delaware’s franchise tax and Virginia’s annual corporate fee. The form of the reincorporation was the merger of the then existing Delaware corporation into a newly created Virginia corporation. The Company retained the same name and conducts business in the same manner as before the reincorporation. In addition, all of the issued and outstanding shares of the Company’s common stock and preferred stock, including the TARP preferred stock, are now shares of a Virginia corporation. The reincorporation had no effect on the Bank and its operations.

TARP INVESTMENT

In December 2008, the Company issued 17,680 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the “Series A Preferred Stock”) and a related common stock warrant to the United States Department of the Treasury (the “Treasury”) for a total price of $17,680,000. The issuance and receipt of proceeds from the Treasury were made under its voluntary Capital Purchase Program. The Series A Preferred Stock qualifies as Tier 1 capital. The Series A Preferred Stock has a liquidation amount per share equal to $1,000. The Series A Preferred Stock pays cumulative dividends at a rate of 5% per year for the first five years and thereafter at a rate of 9% per year. The Company may defer dividend payments, but the dividend is a cumulative dividend that accrues for payment in the future. The common stock warrant permits the Treasury to purchase 780,000 shares of common stock at an exercise price of $3.40 per share.

In 2010, 2011 and 2012, the Company deferred various payments of its regular quarterly cash dividend with respect to the Series A Preferred Stock as it was in the process of resolving certain regulatory concerns. The payment of dividends on the Series A Preferred Stock had also been subject to approval of the Company’s regulators, as set forth in a written agreement, which terminated in December 2012. As of December 31, 2013, the Company was current in its payment of dividends with respect to the Series A Preferred Stock. Following the dividend payment in February 2014, the dividend rate automatically increased to 9% per year.

During 2013, the Company repurchased 7,000 shares of the original 17,680 shares of Series A Preferred Stock. The Company funded the repurchase through the earnings of its banking subsidiary. The form of the repurchase was a redemption under the terms of the Series A Preferred Stock. The Company paid the Treasury $7.0 million, which represented 100% of the par value of the preferred stock repurchased plus accrued dividends with respect to such shares. Following the redemptions in 2013, the Treasury owned 10,680 shares of the Series A Preferred Stock, which represents an investment of $10,680,000.

The Treasury continues to hold a warrant to purchase 780,000 shares of the Company’s common stock at an exercise price of $3.40.

EMPLOYEES

As of December 31, 2013, the Company had 234 full-time equivalent employees, including executive officers, loan and other banking officers, branch personnel, operations personnel and other support personnel. None of the Company’s employees is

5

represented by a union or covered under a collective bargaining agreement. Management of the Company considers its employee relations to be excellent.

AVAILABLE INFORMATION

The Company files with or furnishes to the Securities and Exchange Commission annual, quarterly and current reports, proxy statements, and various other documents under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The public may read and copy any materials that the Company files with or furnishes to the SEC at the SEC’s Public Reference Room, which is located at 100 F Street, NE, Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at (800) SEC-0330. Also, the SEC maintains an internet website at www.sec.gov that contains reports, proxy and information statements and other information regarding registrants, including the Company, that file or furnish documents electronically with the SEC.

The Company also makes available free of charge on or through our internet website (www.cbtrustcorp.com) its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and, if applicable, amendments to those reports as filed or furnished pursuant to Section 13(a) of the Exchange Act as soon as reasonably practicable after the Company electronically files such materials with, or furnishes them to, the SEC.

SUPERVISION AND REGULATION

General

As a bank holding company, we are subject to regulation under the Bank Holding Company Act of 1956, as amended (the “BHCA”), and the examination and reporting requirements of the Board of Governors of the Federal Reserve System (the “Federal Reserve”). Other federal and state laws govern the activities of our bank subsidiary, including the activities in which it may engage, the investments that it makes, the aggregate amount of loans that it may grant to one borrower, and the dividends it may declare and pay to us. Our bank subsidiary is also subject to various consumer and compliance laws. As a state-chartered bank, the Bank is primarily subject to regulation, supervision and examination by the Bureau of Financial Institutions of the Virginia State Corporation Commission (the “SCC”). Our bank subsidiary also is subject to regulation, supervision and examination by the FDIC.

The following description discusses certain provisions of federal and state laws and certain regulations and the potential impact of such provisions on the Company and the Bank. These federal and state laws and regulations have been enacted generally for the protection of depositors in banks and not for the protection of stockholders of bank holding companies or banks.

Bank Holding Companies

The Company is registered as a bank holding company under the BHCA and, as a result, is subject to regulation by the Federal Reserve. Accordingly, the Company is subject to periodic examination by the Federal Reserve and is required to file periodic reports regarding its operations and any additional information that the Federal Reserve may require. The BHCA generally limits the activities of a bank holding company and its subsidiaries to that of banking, managing or controlling banks, or any other activity that is so closely related to banking or to managing or controlling banks as to be a proper incident to it. While federal law permits bank holding companies from any states to acquire banks and bank holding companies located in any other state, or to establish interstate de novo branches, the Federal Reserve has jurisdiction under the BHCA to approve any bank or nonbank acquisition, merger or consolidation, or the establishment of any interstate de novo branches, proposed by a bank holding company.

There are a number of obligations and restrictions imposed on bank holding companies and their depository institution subsidiaries by federal law and regulatory policy that are designed to reduce potential loss exposure to the depositor of such depository institutions and to the FDIC’s Deposit Insurance Fund (the “DIF”) in the event the depository institution becomes in danger of default or in default. For example, under a policy of the Federal Reserve with respect to bank holding company operations, a bank holding company is required to serve as a source of financial strength to its subsidiary depository institutions and to commit resources to support such institutions in circumstances where it might not do so otherwise.

The Federal Deposit Insurance Act (the “FDIA”) also provides that amounts received from the liquidation or other resolution of any insured depository institution by any receiver must be distributed (after payment of secured claims) to pay the deposit liabilities of the institution prior to payment of any other general or unsecured senior liability, subordinated liability, general creditor or stockholders in the event that a receiver is appointed to distribute the assets of the Bank.

The Company was required to register in Virginia with the SCC under the financial institution holding company laws of Virginia. Accordingly, the Company is subject to regulation and supervision by the SCC.

The Dodd-Frank Act

In July 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”). The Dodd-Frank Act significantly restructures the financial regulatory regime in the United States and has a

6

broad impact on the financial services industry. While some rulemaking under the Dodd-Frank Act has occurred, many of the act’s provisions require study or rulemaking by federal agencies, a process which will take years to implement fully.

Among other things, the Dodd-Frank Act provides for new capital standards that eliminate the treatment of trust preferred securities as Tier 1 capital. Existing trust preferred securities are grandfathered for banking entities with less than $15 billion of assets, such as the Company. The Dodd-Frank Act permanently raises deposit insurance levels to $250,000, and until December 31, 2012 provided unlimited deposit insurance coverage for transaction accounts. Pursuant to modifications under the Dodd-Frank Act, deposit insurance assessments will be calculated based on an insured depository institution’s assets rather than its insured deposits and the minimum reserve ratio of the FDIC’s DIF is to be raised to 1.35%. The payment of interest on business demand deposit accounts is permitted by the Dodd-Frank Act. Further, the Dodd-Frank Act bars banking organizations, such as the Company, from engaging in proprietary trading and from sponsoring and investing in hedge funds and private equity funds, except as permitted under certain limited circumstances.

The Dodd-Frank Act established the Consumer Financial Protection Bureau (the “CFPB”) as an independent bureau of the Federal Reserve System. The CFPB has the exclusive authority to prescribe rules governing the provision of consumer financial products and services, which in the case of the Bank will be enforced by the Federal Reserve. The Dodd-Frank Act also provides that debit card interchange fees must be reasonable and proportional to the cost incurred by the card issuer with respect to the transaction. This provision is known as the “Durbin Amendment.” In June 2011, the Federal Reserve adopted regulations setting the maximum permissible interchange fee as the sum of 21 cents per transaction and 5 basis points multiplied by the value of the transaction, with an additional adjustment of up to one cent per transaction if the card issuer implements certain fraud-prevention standards. The interchange fee restriction only applies to financial institutions with assets of $10 billion or more and therefore has no effect on the Company.

The Dodd-Frank Act enhances the requirements for certain transactions with affiliates under Sections 23A and 23B of the Federal Reserve Act, including an expansion of the definition of “covered transactions” and an increase in the amount of time for which collateral requirements regarding covered transactions must be maintained. These requirements became effective on July 21, 2011. The Dodd-Frank Act also provides that the appropriate federal regulators must establish standards prohibiting as an unsafe and unsound practice any compensation plan of a bank holding company or other “covered financial institution” that provides an insider or other employee with “excessive compensation” or compensation that gives rise to excessive risk or could lead to a material financial loss to such firm. In June 2010, prior to the Dodd-Frank Act, the bank regulatory agencies promulgated the Interagency Guidance on Sound Incentive Compensation Policies, which requires that financial institutions establish metrics for measuring the impact of activities to achieve incentive compensation with the related risk to the financial institution of such behavior.

Although a significant number of the rules and regulations mandated by the Dodd-Frank Act have been finalized, many of the new requirements have yet to be implemented and will likely be subject to implementing regulations over the course of several years. Given the uncertainty associated with the manner in which the provisions of the Dodd-Frank Act will be implemented by the various regulatory agencies, the full extent of the impact such requirements will have on the operations of the Company and the Bank is unclear. The changes resulting from the Dodd-Frank Act may affect the profitability of business activities, require changes to certain business practices, impose more stringent capital requirements, liquidity and leverage ratio requirements, or otherwise adversely affect the business of the Company and the Bank. These changes may also require the Company to invest significant management attention and resources to evaluate and make necessary changes to comply with new statutory and regulatory requirements.

Capital Requirements and Dividends

The Federal Reserve has issued risk-based and leverage capital guidelines applicable to banking organizations that it supervises. Under the risk-based capital requirements, the Company and the Bank are each generally required to maintain a minimum ratio of total capital to risk-weighted assets (including certain off-balance sheet activities, such as standby letters of credit) of 8%. At least half of the total capital must be composed of “Tier 1 Capital,” which is defined as common equity, retained earnings and qualifying perpetual preferred stock, less certain intangibles. The remainder may consist of “Tier 2 Capital,” which is defined as specific subordinated debt, some hybrid capital instruments and other qualifying preferred stock and a limited amount of the loan loss allowance. In addition, each of the federal banking regulatory agencies has established minimum leverage capital requirements for banking organizations.

On July 2, 2013, the Federal Reserve adopted a final rule (the “Basel III Rule”) revising the risk-based and leverage capital requirements and the method for calculating risk-weighted assets to be consistent with the agreements reached by the Basel Committee on Banking Supervision in “Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems” (Basel III) and certain provisions of the Dodd-Frank Act. The Basel III Rule applies to all depository institutions, top-tier bank holding companies with total consolidated assets of $500 million or more, and top-tier savings and loan holding companies (referred to as “banking organizations”). For community banking organizations, like the Company, these revised capital requirements will be phased in beginning on January 1, 2015.

7

Under current requirements (prior to effectiveness of the Basel III Rule), banking organizations must maintain a minimum ratio of Tier 1 capital to adjusted average quarterly assets equal to 3% to 5%, subject to federal bank regulatory evaluation of an organization’s overall safety and soundness. In summary, the capital measures used by the federal banking regulators are:

• Total risk-based capital ratio (Total Capital Ratio), which is the total of Tier 1 Capital and Tier 2 Capital as a percentage of total risk-weighted assets;

• Tier 1 risk-based capital ratio (Tier 1 Ratio), which is Tier 1 Capital as a percentage of total risk-weighted assets; and

• Leverage Ratio, which is Tier 1 Capital as a percentage of adjusted average total assets.

Under pre-Basel III Rule regulations, a bank is considered:

• “Well capitalized” if it has a Total Capital Ratio of 10% or greater, Tier 1 Ratio of 6% or greater, a Leverage Ratio of 5% or greater, and is not subject to any written agreement, order, capital directive, or prompt corrective action directive by a federal bank regulatory agency to meet and maintain a specific capital level for any capital measure;

• “Adequately capitalized” if it has a Total Capital Ratio of 8% or greater, a Tier 1 Ratio of 4% or greater, and a Leverage Ratio of 4% or greater — or 3% in certain circumstances — and is not well capitalized;

• “Undercapitalized” if it has a Total Capital Ratio of less than 8% or greater, a Tier 1 Ratio of less than 4%, and a Leverage Ratio of less than 4% — or 3% in certain circumstances;

• “Significantly undercapitalized” if it has a Total Capital Ratio of less than 6%, a Tier 1 Ratio of less than 3%, or a Leverage Ratio of less than 3%; or

• “Critically undercapitalized” if its tangible equity is equal to or less than 2% of average quarterly tangible assets.

Among other things, the Basel III Rule establishes a new common equity tier 1 (CET1) minimum capital requirement, introduces a “capital conservation buffer” and raises minimum risk-based capital requirements. Under the new rule, CET1 is defined as comprising Tier 1 Capital, less non-cumulative perpetual preferred stock and grandfathered trust-preferred and other securities, plus certain regulatory deductions. The Basel III Rule establishes a new minimum required ratio of CET1 to risk-weighted assets (CET1 Ratio) of 4.5%, and raises the minimum Tier 1 Ratio to 6.0% (from the prior 4.0% minimum). Furthermore, the minimum required Leverage Ratio is increased in the final Basel III Rule to 4.0% for all banking organizations irrespective of differences in composite supervisory ratings.

In conjunction with the changes in the required minimum capital ratios, the Basel III Rule also changes the definitions of the five regulatory capitalization categories set forth above, effective January 1, 2015. A table illustrating these changes is set forth below.

Capitalization Category	Total Capital Ratio (%)		Tier 1 Ratio (%)		CET1 Ratio (%)		Leverage Ratio (%)
Well capitalized (present)	³	10	³	6		N/A	³	5
Well capitalized (Basel III)	³	10	³	8	³	6.5	³	5
Adequately capitalized (present)	³	8	³	4		N/A	³	4
Adequately capitalized (Basel III)	³	8	³	6	³	4.5	³	4
Undercapitalized (present)	<	8	<	4		N/A	<	4
Undercapitalized (Basel III)	<	8	<	6	<	4.5	<	4
Significantly undercapitalized (present)	<	6	<	3		N/A	<	3
Significantly undercapitalized (Basel III)	<	6	<	4	<	3	<	3
Critically undercapitalized (present)		GAAP tangible equity £ 2% of average quarterly assets
Critically undercapitalized (Basel III)		Basel III tangible equity (Tier 1 Capital plus non-tier 1 perpetual preferred stock) £ 2% of total assets

The new required capital conservation buffer will be comprised of an additional 2.5% of CET1 as a percentage of risk-weighted assets. Institutions that do not maintain the required capital buffer will be subject to progressively more stringent limitations on the percentage of earnings that can be paid out in dividends or used for stock repurchases and on the payment of discretionary bonuses to senior executive management. This capital conservation buffer is in addition to, and not included with, the CET1 Ratio described

8

above. A table illustrating these limitations on the ratio which can be paid out (defined in the Basel III Rule as “maximum payout ratio”) is set forth below.

Capital Conservation Buffer (CET1 as a percentage of total risk-weighted assets)	Maximum payout ratio (as a percentage of eligible retained income)
Greater than 2.5%		No applicable limitation.
£ 2.5% and > 1.875%		60	%
£ 1.875% and > 1.25%		40	%
£ 1.25% and > 0.625%		20	%
£ 0.625%		0	%

The Basel III Rule also introduces new methodologies for determining risk-weighted assets, including higher risk weightings, up to a maximum of 150%, for exposures that are more than 90 days past due or are on nonaccrual status and for certain commercial real estate facilities that finance the acquisition, development or construction of real property. The Basel III Rule also requires unrealized gains and losses on certain securities holdings to be included, or excluded, as applicable, for purposes of calculating certain regulatory capital requirements. Additionally, the Basel III Rule establishes that, for banking organizations with less than $15 billion in assets as of December 31, 2009, the ability to treat trust preferred securities as tier 1 capital would be permanently grandfathered in.

The risk-based capital standards of the Federal Reserve explicitly identify concentrations of credit risk and the risk arising from non-traditional activities, as well as an institution’s ability to manage these risks, as important factors to be taken into account by the agency in assessing an institution’s overall capital adequacy. The capital guidelines also provide that an institution’s exposure to a decline in the economic value of its capital due to changes in interest rates be considered by the agency as a factor in evaluating a banking organization’s capital adequacy.

The FDIC may take various corrective actions against any undercapitalized bank and any bank that fails to submit an acceptable capital restoration plan or fails to implement a plan accepted by the FDIC. These powers include, but are not limited to, requiring the institution to be recapitalized, prohibiting asset growth, restricting interest rates paid, requiring prior approval of capital distributions by any bank holding company that controls the institution, requiring divestiture by the institution of its subsidiaries or by the holding company of the institution itself, requiring new election of directors, and requiring the dismissal of directors and officers. The Bank presently maintains sufficient capital to remain in compliance with these capital requirements.

The Company is a legal entity separate and distinct from the Bank. Virtually all of the Company’s revenues are from dividends paid to the Company by the Bank. The Bank is subject to laws and regulations that limit the amount of dividends it can pay. In addition, both the Company and the Bank are subject to various regulatory restrictions relating to the payment of dividends, including requirements to maintain capital at or above regulatory minimums. Banking regulators have indicated that banking organizations should generally pay dividends only if the organization’s net income available to common shareholders over the past year has been sufficient to fully fund the dividends and the prospective rate of earnings retention appears consistent with the organization’s capital needs, asset quality and overall financial condition.

The FDIC has the general authority to limit the dividends paid by insured banks if the payment is deemed an unsafe and unsound practice. The FDIC has indicated that paying dividends that deplete a bank’s capital base to an inadequate level would be an unsound and unsafe banking practice.

Deposit Insurance

The Bank’s deposits are insured by the DIF of the FDIC up to the standard maximum insurance amount for each deposit insurance ownership category. As of January 1, 2013, the basic limit on FDIC deposit insurance coverage is $250,000 per depositor. Under the FDIA, the FDIC may terminate deposit insurance upon a finding that the institution has engaged in unsafe and unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC, subject to administrative and potential judicial hearing and review processes.

The DIF is funded by assessments on banks and other depository institutions. As required by the Dodd-Frank Act, in February 2011, the FDIC approved a final rule that changed the assessment base for DIF assessments from domestic deposits to Tier 1 Capital. In addition, as also required by the Dodd-Frank Act, the FDIC has adopted a new large-bank pricing assessment scheme, set a target “designated reserve ratio” (described in more detail below) of 2 percent for the DIF and established a lower assessment rate schedule when the reserve ratio reaches 1.15 percent and, in lieu of dividends, provides for a lower assessment rate schedule, when the reserve ratio reaches 2 percent and 2.5 percent. An institution’s assessment rate depends upon the institution’s assigned risk category, which is based on supervisory evaluations, regulatory capital levels and certain other factors. Initial base assessment rates ranges from 2.5 to 45 basis points. The FDIC may make the following further adjustments to an institution’s initial base assessment rates: decreases for long-term unsecured debt including most senior unsecured debt and subordinated debt; increases for holding long-term unsecured debt

9

or subordinated debt issued by other insured depository institutions; and increases for broker deposits in excess of 10 percent of domestic deposits for institutions not well rated and well capitalized.

The Dodd-Frank Act transferred to the FDIC increased discretion with regard to managing the required amount of reserves for the DIF, or the “designated reserve ratio.” Among other changes, the Dodd-Frank Act (i) raised the minimum designated reserve ratio to 1.35 percent and removed the upper limit on the designated reserve ratio, (ii) requires that the designated reserve ratio reach 1.35 percent by September 2020, and (iii) requires the FDIC to offset the effect on institutions with total consolidated assets of less than $10 billion of raising the designated reserve ratio from 1.15 percent to 1.35 percent. The FDIA requires that the FDIC consider the appropriate level for the designated reserve ratio on at least an annual basis. On October 2010, the FDIC adopted a new DIF restoration plan to ensure that the fund reserve ratio reaches 1.35 percent by September 30, 2020, as required by the Dodd-Frank Act.

Incentive Compensation

In June 2010, the federal banking regulators issued comprehensive final guidance on incentive compensation policies intended to ensure that the incentive compensation policies of banking organizations do not undermine the safety and soundness of such organizations by encouraging excessive risk-taking. The guidance, which covers all employees that have the ability to materially affect the risk profile of an organization, either individually or as part of a group, is based upon the key principles that a banking organization’s incentive compensation arrangements should (i) provide incentives that do not encourage risk-taking beyond the organization’s ability to effectively identify and manage risks, (ii) be compatible with effective internal controls and risk management, and (iii) be supported by strong corporate governance, including active and effective oversight by the organization’s Board of Directors.

The Federal Reserve will review, as part of the regular, risk-focused examination process, the incentive compensation arrangements of banking organizations, such as the Company, that are not “large, complex banking organizations.” These reviews will be tailored to each organization based on the scope and complexity of the organization’s activities and the prevalence of incentive compensation arrangements. The findings of the supervisory initiatives will be included in reports of examination. Deficiencies will be incorporated into the organization’s supervisory ratings, which can affect the organization’s ability to make acquisitions and take other actions. Enforcement actions may be taken against a banking organization if its incentive compensation arrangements, or related risk-management control or governance processes, pose a risk to the organization’s safety and soundness and the organization is not taking prompt and effective measures to correct the deficiencies. At December 31, 2013, the Company had not been made aware of any instances of non-compliance with the new guidance.

The Gramm-Leach-Bliley Act of 1999

The Gramm-Leach-Bliley Act of 1999 (Gramm-Leach-Bliley) drew lines between the types of activities that are permitted for banking organizations that are financial in nature and those that are not permitted because they are commercial in nature.

Gramm-Leach-Bliley created a new form of financial organization called a financial holding company that may own and control banks, insurance companies and securities firms, thereby repealing the prohibition in the Glass-Steagall Act on bank affiliations with companies that are engaged primarily in securities underwriting activities. A financial holding company is authorized to engage in any activity that is financial in nature or incidental to an activity that is financial in nature or is a complementary activity, including, for example, insurance, securities transactions (including underwriting, broker/dealer activities and investment advisory services) and traditional banking-related activities. The Company is currently not a financial holding company under Gramm-Leach-Bliley.

Gramm-Leach-Bliley directed federal banking regulators to adopt rules limiting the ability of banks and other financial institutions to disclose non-public information about consumers to nonaffiliated third parties. These limitations require disclosure of privacy policies to consumers and, in some circumstances, allow consumers to prevent disclosure of certain personal information to a nonaffiliated third party. Pursuant to these rules, financial institutions must provide: initial notices to customers about their privacy policies, including a description of the conditions under which they may disclose nonpublic personal information to nonaffiliated third parties and affiliates; annual notices of their privacy policies to current customers; and a reasonable method for customers to “opt out” of disclosures to nonaffiliated third parties. These privacy provisions affect how consumer information is transmitted through diversified financial companies and conveyed to outside vendors. The Company, as a bank holding company, is subject to these rules.

Community Reinvestment Act

Under the Community Reinvestment Act (CRA) and related regulations, depository institutions have an affirmative obligation to assist in meeting the credit needs of their market areas, including low and moderate-income areas, consistent with safe and sound banking practice. CRA requires the adoption of a statement for each of its market areas describing the depository institution’s efforts to assist in its community’s credit needs. Depository institutions are periodically examined for compliance with CRA and are periodically assigned ratings in this regard. Banking regulators consider a depository institution’s CRA rating when reviewing applications to establish new branches, undertake new lines of business, and/or acquire part or all of another depository institution. An unsatisfactory rating can significantly delay or even prohibit regulatory approval of a proposed transaction by a bank holding company or its depository institution subsidiaries.

10

Gramm-Leach-Bliley and federal bank regulators have made various changes to CRA. Among other changes, CRA agreements with private parties must be disclosed and annual reports must be made to a bank’s primary federal regulator. A financial holding company or any of its subsidiaries will not be permitted to engage in new activities authorized under Gramm-Leach-Bliley if any bank subsidiary received less than a “satisfactory” rating in its latest CRA examination. The Company believes that it is currently in compliance with CRA.

Fair Lending; Consumer Laws

In addition to CRA, other federal and state laws regulate various lending and consumer aspects of the banking business. Governmental agencies, including the Department of Housing and Urban Development, the Federal Trade Commission and the Department of Justice, have become concerned that prospective borrowers experience discrimination in their efforts to obtain loans from depository and other lending institutions. These agencies have brought litigation against depository institutions alleging discrimination against borrowers. Many of these suits have been settled, in some cases for material sums, short of a full trial.

These governmental agencies have clarified what they consider to be lending discrimination and have specified various factors that they will use to determine the existence of lending discrimination under the Equal Credit Opportunity Act and the Fair Housing Act, including evidence that a lender discriminated on a prohibited basis, evidence that a lender treated applicants differently based on prohibited factors in the absence of evidence that the treatment was the result of prejudice or a conscious intention to discriminate, and evidence that a lender applied an otherwise neutral non-discriminatory policy uniformly to all applicants, but the practice had a discriminatory effect, unless the practice could be justified as a business necessity.

Banks and other depository institutions also are subject to numerous consumer-oriented laws and regulations. These laws, which include the Truth in Lending Act, the Truth in Savings Act, the Real Estate Settlement Procedures Act, the Electronic Funds Transfer Act, the Equal Credit Opportunity Act, and the Fair Housing Act, require compliance by depository institutions with various disclosure requirements and requirements regulating the availability of funds after deposit or the making of some loans to customers.

Governmental Policies

The Federal Reserve regulates money, credit and interest rates in order to influence general economic conditions. These policies influence overall growth and distribution of bank loans, investments and deposits. These policies also affect interest rates charged on loans or paid for time and savings deposits. Federal Reserve monetary policies have had a significant effect on the operating results of commercial banks in the past and are expected to continue to do so in the future.

Future Regulatory Uncertainty

Because federal and state regulation of financial institutions changes regularly and is the subject of constant legislative debate, the Company cannot forecast how federal and state regulation of financial institutions may change in the future and impact its operations. The Company fully expects that the financial institution industry will remain heavily regulated in the near future and that additional laws or regulations may be adopted further regulating specific banking practices.

ITEM 1A. RISK FACTORS

Our operations are subject to many risks that could adversely affect our future financial condition and performance and, therefore, the market value of our common stock. The risk factors applicable to us are the following:

Our future success is dependent on our ability to compete effectively in the highly competitive banking and financial services industry.

We face vigorous competition from other commercial banks, savings banks, credit unions, mortgage banking firms, consumer finance companies, securities brokerage firms, insurance companies, money market funds and other types of financial institutions for deposits, loans and other financial services in our market area. A number of these banks and other financial institutions are significantly larger than we are and have substantially greater access to capital and other resources, as well as larger lending limits and branch systems, and offer a wider array of banking services. Many of our nonbank competitors are not subject to the same extensive regulations that govern us. As a result, these non-bank competitors have advantages over us in providing certain services.

While we believe we compete effectively with these other financial institutions in our primary markets, we may face a competitive disadvantage as a result of our smaller size, smaller asset base, lack of geographic diversification and inability to spread our marketing costs across a broader market. If we have to raise interest rates paid on deposits or lower interest rates charged on loans to compete effectively, our net interest margin and income could be negatively affected. Failure to compete effectively to attract new, or to retain existing, clients may reduce or limit our margins and our market share and may adversely affect our results of operations, financial condition, and growth.

11

Difficult market conditions in the economy continue to adversely affect our industry.

Declines in the housing market in recent years, with falling home prices and higher levels of foreclosures, unemployment and under-employment, have negatively impacted the credit performance of real-estate related and consumer loans and resulted in significant write-downs of asset values by financial institutions. These write-downs spread to other securities and loans and have caused many financial institutions to seek additional capital, to reduce or eliminate dividends, to merge with larger and stronger institutions and, in some cases, to fail. In this environment, many lenders and institutional investors have reduced or ceased providing funding to borrowers, including to other financial institutions. This market turmoil and tightening of credit have led to an increased level of commercial and consumer delinquencies, lack of consumer confidence and reduction of business activity generally. Continuing economic pressure on consumers and lack of confidence in the financial markets may adversely affect our business and results of operations. Market developments may affect consumer confidence levels and may cause adverse changes in payment patterns, causing increases in delinquencies and default rates, which may impact our charge-offs and provision for credit losses. A worsening of these conditions would likely exacerbate the adverse effects of these difficult market conditions on us and others in the financial institutions industry.

We may be adversely affected by economic conditions in our market area.

We operate in a mixed market environment with influences from both rural and urban areas. Because our lending operation is concentrated in localized areas in Virginia and Maryland, we will be affected by the general economic conditions in these markets. Changes in the local economy may influence the growth rate of our loans and deposits, the quality of the loan portfolio, and loan and deposit pricing. A significant decline in general economic conditions caused by inflation, recession, unemployment or other factors beyond our control would impact these local economic conditions and the demand for banking products and services generally, which could negatively affect our financial condition and performance. Although we might not have significant credit exposure to all the businesses in our areas, the downturn in any of these businesses could have a negative impact on local economic conditions and real estate collateral values generally, which could negatively affect our profitability.

We may not be able to successfully manage our long-term growth, which may adversely affect our results of operations and financial condition.

A key aspect of our long-term business strategy is our continued growth and expansion. Our ability to continue to grow depends, in part, upon our ability to:

• open new branch offices or acquire existing branches or other financial institutions;

• attract deposits to those locations; and

• identify attractive loan and investment opportunities.

We may not be able to successfully implement our growth strategy if we are unable to identify attractive markets, locations or opportunities to expand in the future, or if we are subject to regulatory restrictions on growth or expansion of our operations. Our ability to manage our growth successfully also will depend on whether we can maintain capital levels adequate to support our growth, maintain cost controls and asset quality and successfully integrate any businesses we acquire into our organization. As we identify opportunities to implement our growth strategy by opening new branches or acquiring branches or other banks, we may incur increased personnel, occupancy and other operating expenses. In the case of new branches, we must absorb those higher expenses while we begin to generate new deposits, and there is a further time lag involved in redeploying new deposits into attractively priced loans and other higher yielding earning assets. Thus, any plans for branch expansion could decrease our earnings in the short run, even if we efficiently execute our branching strategy.

If our allowance for loan losses becomes inadequate, our results of operations may be adversely affected.

An essential element of our business is to make loans. We maintain an allowance for loan losses that we believe is a reasonable estimate of known and inherent losses in our loan portfolio. Through a periodic review and analysis of the loan portfolio, management determines the adequacy of the allowance for loan losses by considering such factors as general and industry-specific market conditions, credit quality of the loan portfolio, the collateral supporting the loans and financial performance of our loan customers relative to their financial obligations to us. The amount of future losses is impacted by changes in economic, operating and other conditions, including changes in interest rates, which may be beyond our control. Actual losses may exceed our current estimates. Rapidly growing loan portfolios are, by their nature, unseasoned. Estimating loan loss allowances for an unseasoned portfolio is more difficult than with seasoned portfolios, and may be more susceptible to changes in estimates and to losses exceeding estimates. Although we believe the allowance for loan losses is a reasonable estimate of known and inherent losses in our loan portfolio, we cannot fully predict such losses or assert that our loan loss allowance will be adequate in the future. Future loan losses that are greater than current estimates could have a material impact on our future financial performance.

12

Banking regulators periodically review our allowance for loan losses and may require us to increase our allowance for loan losses or recognize additional loan charge-offs, based on credit judgments different than those of our management. Any increase in the amount of our allowance or loans charged-off as required by these regulatory agencies could have a negative effect on our operating results.

Our concentration in loans secured by real estate may increase our future credit losses, which would negatively affect our financial results.

We offer a variety of secured loans, including commercial lines of credit, commercial term loans, real estate, construction, home equity, consumer and other loans. Credit risk and credit losses can increase if our loans are concentrated to borrowers who, as a group, may be uniquely or disproportionately affected by economic or market conditions. Approximately 87% of our loans are secured by real estate, both residential and commercial, substantially all of which are located in our market area. A major change in the region’s real estate market, resulting in a deterioration in real estate values, or in the local or national economy, including changes caused by raising interest rates, could adversely affect our customers’ ability to pay these loans, which in turn could adversely impact us. Risk of loan defaults and foreclosures are inherent in the banking industry, and we try to limit our exposure to this risk by carefully underwriting and monitoring our extensions of credit. We cannot fully eliminate credit risk, and as a result credit losses may occur in the future.

We may incur losses if we are unable to successfully manage interest rate risk.

Our profitability depends in substantial part upon the spread between the interest rates earned on investments and loans and interest rates paid on deposits and other interest-bearing liabilities. These rates are normally in line with general market rates and rise and fall based on our view of our financing and liquidity needs. We may selectively pay above-market rates to attract deposits as we have done in some of our marketing promotions in the past. Changes in interest rates will affect our operating performance and financial condition in diverse ways including the pricing of securities, loans and deposits, which, in turn, may affect the growth in loan and retail deposit volume. We attempt to minimize our exposure to interest rate risk, but cannot eliminate it. Our net interest income will be adversely affected if market interest rates change so that the interest we pay on deposits and borrowings increases faster than the interest earned on loans and investments. Our net interest spread will depend on many factors that are partly or entirely outside our control, including competition, federal economic, monetary and fiscal policies and economic conditions generally. Fluctuations in market rates are neither predictable nor controllable and may have a material and negative effect on our business, financial condition and results of operations.

Changes in interest rates also affect the value of our loans. An increase in interest rates could adversely affect our borrowers’ ability to pay the principal or interest on existing loans or reduce their desire to borrow more money. This situation may lead to an increase in non-performing assets or a decrease in loan originations, either of which could have a material and negative effect on our results of operations.

We rely heavily on our management team and the unexpected loss of any of those personnel could adversely affect our operations; we depend on our ability to attract and retain key personnel.

We are a customer-focused and relationship-driven organization. We expect our future growth to be driven in a large part by the relationships maintained with our customers by our president and chief executive officer and other senior officers. The unexpected loss of any of our key employees could have an adverse effect on our business and possibly result in reduced revenues and earnings. We do maintain bank-owned life insurance on key officers that would help cover some of the economic impact of a loss caused by death.

The implementation of our business strategy will also require us to continue to attract, hire, motivate and retain skilled personnel to develop new customer relationships as well as new financial products and services. Many experienced banking professionals employed by our competitors are covered by agreements not to compete or to solicit their existing customers if they were to leave their current employment. These agreements make the recruitment of these professionals more difficult. The market for these people is competitive, and we cannot assure you that we will be successful in attracting, hiring, motivating or retaining them.

The Federal Reserve adopted final rules subjecting banks and bank holding companies to more stringent capital and liquidity requirements, the short-term and long-term impact of which is uncertain.

We are subject to capital adequacy guidelines and other regulatory requirements specifying minimum amounts and types of capital which we must maintain. In July 2013, the Federal Reserve and the federal banking agencies issued final rules revising risk-based and leverage capital requirements and the method for calculating risk-weighted assets. The rules implement the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act. The rules

13

establish a new common equity Tier 1 minimum capital requirement (4.5% of risk-weighted assets) and a higher minimum Tier 1 risk-based capital requirement (6% of risk-weighted assets) and assign higher risk weightings to loans that are past due and certain loans financing the acquisition, development or construction of commercial real estate. We will be required to comply with the new rules beginning on January 1, 2015. These requirements and any other new regulations, could adversely affect our ability to pay dividends, or could require us to reduce business levels or to raise capital, including in ways that may adversely affect our financial condition or results of operations.

New regulations issued by the Consumer Financial Protection Bureau could adversely affect our earnings.

The CFPB has broad rulemaking authority to administer and carry out the provisions of the Dodd-Frank Act with respect to financial institutions that offer covered financial products and services to consumers. The CFPB has also been directed to write rules identifying practices or acts that are unfair, deceptive or abusive in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service. For example, the CFPB issued a final rule effective January 10, 2014, requiring mortgage lenders to make a reasonable and good faith determination based on verified and documented information that a consumer applying for a mortgage loan has a reasonable ability to repay the loan according to its terms, or to originate “qualified mortgages” that meet specific requirements with respect to terms, pricing and fees. The new rule also contains new disclosure requirements at mortgage loan origination and in monthly statements.

The requirements under the CFPB’s regulations and policies could limit our ability to make certain types of loans or loans to certain borrowers, or could make it more expensive and/or time consuming to make these loans, which could adversely impact our profitability.

We may need to raise capital that may not ultimately be available to us.

Regulatory authorities require us to maintain certain levels of capital to support our operations. While we remained “well capitalized” at December 31, 2013, we may need to raise additional capital in the future if we incur losses or due to regulatory mandates. The ability to raise capital, if needed, will depend in part on conditions in the capital markets at that time, which are outside our control, and on our financial performance. Accordingly, we may not be able to raise capital, if and when needed, on terms acceptable to us, or at all. If we cannot raise capital when needed, our ability to increase our capital ratios could be materially impaired, and we could face regulatory challenges.

A substantial decline in the value of our securities portfolio may result in an “other-than-temporary” impairment charge.

The total amount of our available-for-sale securities portfolio was $265.8 million at December 31, 2013. The measurement of the fair value of these securities involves significant judgment due to the complexity of the factors contributing to the measurement. Market volatility makes measurement of the fair value of our securities portfolio even more difficult and subjective. More generally, as market conditions continue to be volatile, we cannot provide assurance with respect to the amount of future unrealized losses in the portfolio. To the extent that any portion of the unrealized losses in these portfolios is determined to be other than temporary, and the loss is related to credit factors, we would recognize a charge to our earnings in the quarter during which such determination is made, and our capital ratios could be adversely affected.

The repeal of federal prohibitions on payment of interest on demand deposits could increase our interest expense.

All federal prohibitions on the ability of financial institutions to pay interest on demand deposit accounts were repealed as part of the Dodd-Frank Act beginning on July 21, 2011. As a result, some financial institutions have commenced offering interest on demand deposits to compete for customers. Our interest expense will increase and net interest margin will decrease if we begin offering interest on demand deposits to attract additional customers or maintain current customers, which could have a material adverse effect on our financial condition and results of operations.

Consumers may increasingly decide not to use us to complete their financial transactions, which would have a material adverse impact on our financial condition and operations.

Technology and other changes are allowing parties to complete financial transactions through alternative methods that historically have involved banks. For example, consumers can now maintain funds that would have historically been held as bank deposits in brokerage accounts, mutual funds or general-purpose reloadable prepaid cards. Consumers can also complete transactions such as paying bills and/or transferring funds directly without the assistance of banks. The process of eliminating banks as intermediaries, known as “disintermediation,” could result in the loss of fee income, as well as the loss of customer deposits and the related income generated from those deposits. The loss of these revenue streams and the lower cost of deposits as a source of funds could have a material adverse effect on our financial condition and results of operations.

14

Nonperforming assets adversely affect our results of operations and financial condition.

Our nonperforming assets adversely affect our net income in various ways. We do not record interest income on non-accrual loans, thereby adversely affecting our income and increasing loan administration costs. When we receive collateral through foreclosures and similar proceedings, we are required to mark the related loan to the then fair market value of the collateral less estimated selling costs, which may result in a loss. An increase in the level of nonperforming assets also increases our risk profile and may impact the capital levels our regulators believe is appropriate in light of such risks. We utilize various techniques such as loan sales, workouts and restructurings to manage our problem assets. Decreases in the value of these problem assets, the underlying collateral, or in the borrowers’ performance or financial condition, could adversely affect our business, results of operations and financial condition.

In addition, the resolution of nonperforming assets requires significant commitments of time from management and staff, which can be detrimental to performance of their other responsibilities. Such resolution may also require the assistance of third parties, and thus the expense associated with it. There can be no assurance that we will avoid further increases in nonperforming loans in the future.

We rely upon independent appraisals to determine the value of the real estate which secures a significant portion of our loans, and the values indicated by such appraisals may not be realizable if we are forced to foreclose upon such loans.

A significant portion of our loan portfolio consists of loans secured by real estate (81.8% at December 31, 2013). We rely upon independent appraisers to estimate the value of such real estate. Appraisals are only estimates of value and the independent appraisers may make mistakes of fact or judgment which adversely affect the reliability of their appraisals. In addition, events occurring after the initial appraisal may cause the value of the real estate to increase or decrease. As a result of any of these factors, the real estate securing some of our loans may be more or less valuable than anticipated at the time the loans were made. If a default occurs on a loan secured by real estate that is less valuable than originally estimated, we may not be able to recover the outstanding balance of the loan and will suffer a loss.

We are subject to extensive government regulation and supervision.

We are subject to extensive federal and state regulation and supervision. Banking regulations are primarily intended to protect depositors’ funds, federal deposit insurance funds and the banking system as a whole, and not security holders. These regulations affect our lending practices, capital structure, investment practices, dividend policy and growth, among other things. Congress and federal regulatory agencies continually review banking laws, regulations and policies for possible changes.

These provisions, or any other aspects of current proposed regulatory or legislative changes to laws applicable to the financial industry, if enacted or adopted, may impact the profitability of our business activities or change certain of our business practices, including our ability to offer new products, obtain financing, attract deposits, make loans, and achieve satisfactory interest spreads, and could expose us to additional costs, including increased compliance costs. These changes also may require us to invest significant management attention and resources to make any necessary changes to our operations in order to comply, and could therefore also materially adversely affect our business, financial condition, and results of operations. Furthermore, failure to comply with laws, regulations or policies could result in sanctions by regulatory agencies, civil money penalties and/or reputation damage, which could have a material adverse effect on our business, financial condition and results of operations.

The realization of the benefits of the FDIC shared loss agreements depends on our compliance with the agreements.

Under the shared loss agreements into which we entered in January 2009, the FDIC will reimburse us 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. The shared loss agreements include a number of obligations for us, including, for example, the submission of detailed certificates, on a monthly basis for losses on single family one-to-four residential mortgage loans and on a quarterly basis for losses on other covered assets, for the FDIC’s review.

Because the shared loss agreements subject us to a number of contractual requirements, we must implement effective internal processes over covered assets (including consistency in the treatment of covered and non-covered assets) to maintain the guaranty that the FDIC has agreed to provide, which underpins the FDIC indemnification asset, which totaled $25.4 million at December 31, 2013. Any failure to comply with the contractual requirements of the shared loss agreements may lead to the revocation of the agreements, which would necessitate the write-off of the related indemnification asset and the receivable that we carry on our balance sheet for amounts that we have billed the FDIC.

15

Certain of our covered assets will no longer be covered by a FDIC shared loss agreement in 2014.

Under the shared loss agreements that we have with the FDIC, the FDIC will reimburse us 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. While the reimbursements for losses on single family one-to-four residential mortgage assets are to be made quarterly through March 2019, the reimbursements for losses on other covered assets are to be made quarterly only through March 2014. This reimbursement arrangement expires at that time and, accordingly, any losses with respect to these non-single family assets after March 2014 will be entirely borne by us. While we believe that we are managing and monitoring these assets, which have a carrying value of $6.0 million at December 31, 2013, appropriately, any unforeseen issues with respect to any of them will have a direct effect on our results after March 2014.

Our disclosure controls and procedures and internal controls may not prevent or detect all errors or acts of fraud.

Our disclosure controls and procedures are designed to reasonably assure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is accumulated and communicated to management, and recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. We believe that any disclosure controls and procedures or internal controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or omission. Additionally, controls can be circumvented by individual acts, by collusion by two or more people and/or by override of the established controls. Accordingly, because of the inherent limitations in our control systems and in human nature, misstatements due to error or fraud may occur and not be detected.

Our information systems may experience an interruption in service or breach in security.

We rely heavily on communications and information systems to conduct our business. Any failure, interruption or breach of security of these systems could result in failures or disruptions in our customer relationship management, transaction processing systems and various accounting and data management systems. While we have policies and procedures designed to prevent and/or limit the effect of any failure, interruption or security breach of our communication and information systems, there can be no assurance that any such failures, interruptions or security breaches will not occur, or, if they do occur, they will be adequately addressed on a timely basis. The occurrence of failures, interruptions or security breaches of our communication and information systems could damage our reputation, result in a loss of customer business, subject us to additional regulatory scrutiny, or expose us to civil litigation and possible financial liability, any of which could have a material adverse effect on its financial condition and results of operations.

We continually encounter technological change.

The financial services industry is continually undergoing rapid technological change with frequent introductions of new technology-driven products and services. The effective use of technology increases efficiency and enables financial institutions to better serve customers and to reduce costs. Our future success depends, in part, upon our ability to address the needs of our customers by using technology to provide products and services that will satisfy customer demands, as well as to create additional efficiencies in our operations. Many of our competitors have substantially greater resources to invest in technological improvements. We may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to our customers. Failure to successfully keep pace with technological change affecting the financial services industry could have a material adverse impact on our business and, in turn, our financial condition and results of operations.

We can give no assurances that our deferred tax asset will not become impaired in the future because it is based on projections of future earnings, which are subject to uncertainty and estimates that may change based on economic conditions.

We can give no assurances that our deferred tax asset will not become impaired in the future. At December 31, 2013, we recorded net deferred income tax assets of $5.8 million. We assess the realization of deferred income tax assets and record a valuation allowance if it is “more likely than not” that we will not realize all or a portion of the deferred tax asset. We consider all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, we need a valuation allowance. Management’s assessment is primarily dependent on historical taxable income and projections of future taxable income, which are directly related to our core earnings capacity and our prospects to generate core earnings in the future. Projections of core earnings and taxable income are inherently subject to uncertainty and estimates that may change given an uncertain economic outlook and current banking industry conditions. Due to the uncertainty of estimates and projections, it is possible that we will be required to record adjustments to the valuation allowance in future reporting periods.

16

We rely on other companies to provide key components of our business infrastructure.

Third parties provide key components of our business operations such as data processing, recording and monitoring transactions, online banking interfaces and services, internet connections and network access. While we have selected these third party vendors carefully, we do not control their actions. Any problem caused by these third parties, including poor performance of services, failure to provide services, disruptions in services provided by a vendor and failure to handle current or higher volumes, could adversely affect our ability to deliver products and services to our customers and otherwise conduct our business, and may harm our reputation. Financial or operational difficulties of a third party vendor could also hurt our operations if those difficulties affect the vendor’s ability to serve us. Replacing these third party vendors could also create significant delay and expense. Accordingly, use of such third parties creates an unavoidable inherent risk to our business operations.

Current levels of market volatility are unprecedented.

The capital and credit markets have been experiencing volatility and disruption in recent years. Recently, the volatility and disruption has reached unprecedented levels. In some cases, the markets have produced downward pressure on stock prices and credit availability for certain issuers without regard to those issuers’ underlying financial strength. If current levels of market disruption and volatility continue or worsen, there can be no assurance that we will not experience an adverse effect, which may be material, on our ability to access capital and on our business, financial condition and results of operations.

Deterioration in the soundness of other financial institutions could adversely affect us.

Our ability to engage in routine funding transactions could be adversely affected by the actions and commercial soundness of other financial institutions. Financial services institutions are interrelated as a result of trading, clearing, counterparty or other relationships. We have exposure to many different industries and counterparties, and we routinely execute transactions with counterparties in the financial industry , including brokers and dealers, commercial banks and other institutional clients. As a result, defaults by, or even rumors or questions about, one or more financial services institutions, or the financial services industry generally, could create market-wide liquidity problems and could lead to losses or defaults by us or by other institutions. Our credit risk may also be exacerbated when the collateral held by us cannot be realized upon or is liquidated at prices not sufficient to recover the full amount of the financial instrument exposure due us. There is no assurance that any such losses would not materially and adversely affect our results of operations.

We may be adversely impacted by changes in the condition of financial markets.

We are directly and indirectly affected by changes in market conditions. Market risk generally represents the risk that values of assets and liabilities or revenues will be adversely affected by changes in market conditions. Market risk is inherent in the financial instruments associated with our operations and activities including loans, deposits, securities, short-term borrowings, long-term debt, trading account assets and liabilities, and derivatives. Just a few of the market conditions that may shift from time to time, thereby exposing us to market risk, include fluctuations in interest and currency exchange rates, equity and futures prices, and price deterioration or changes in value due to changes in market perception or actual credit quality of issuers. Accordingly, depending on the instruments or activities impacted, market risks can have adverse effects on our results of operations and our overall financial condition.

Banking regulators have broad enforcement power, but regulations are meant to protect depositors, and not investors.

We are subject to supervision by several governmental regulatory agencies, including the Federal Reserve Bank of Richmond and Virginia’s Bureau of Financial Institutions. Bank regulations, and the interpretation and application of them by regulators, are beyond our control, may change rapidly and unpredictably and can be expected to influence earnings and growth. In addition, these regulations may limit our growth and the return to investors by restricting activities such as the payment of dividends, mergers with, or acquisitions by, other institutions, investments, loans and interest rates, interest rates paid on deposits and the opening of new branch offices. Although these regulations impose costs on us, they are intended to protect depositors, and should not be assumed to protect the interest of shareholders. The regulations to which we are subject may not always be in the best interest of investors.

Our operations may be adversely affected by cyber security risks.

In the ordinary course of business, we collect and store sensitive data, including proprietary business information and personally identifiable information of our customers and employees in systems and on networks. The secure processing, maintenance and use of this information is critical to operations and our business strategy. We have invested in accepted technologies, and we continually review processes and practices that are designed to protect our networks, computers and data from damage or unauthorized access. Despite these security measures, our computer systems and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance, technology failure or other disruptions. A breach of any kind could

17

compromise systems, and the information stored there could be accessed, damaged or disclosed. A breach in security could result in legal claims, regulatory penalties, disruption in operations, and damage to our reputation, which could adversely affect our business.

Our deposit insurance premiums could increase in the future, which may adversely affect our future financial performance.

The FDIC insures deposits at FDIC insured financial institutions, including us. The FDIC charges insured financial institutions premiums to maintain the Deposit Insurance Fund (the “DIF”) at a certain level. Economic conditions since 2008 have increased the rate of bank failures and expectations for further bank failures, requiring the FDIC to make payments for insured deposits from the DIF and prepare for future payments from the DIF.

During 2009, the FDIC imposed a special deposit insurance assessment on all institutions which it regulates, including us. This special assessment was imposed due to the need to replenish the DIF, as a result of increased bank failures and expected future bank failures. In addition, the FDIC required regulated institutions to prepay their fourth quarter 2009, and full year 2010, 2011 and 2012 assessments in December 2009. Any similar, additional measures taken by the FDIC to maintain or replenish the DIF may have an adverse effect on our financial condition and results of operations.

On April 1, 2011, final rules to implement changes required by the Dodd-Frank Act with respect to the FDIC assessment rules became effective. The rules provide that a depository institution’s deposit insurance assessment will be calculated based on the institution’s total assets less tangible equity, rather than the previous base of total deposits. These changes have not materially increased our FDIC insurance assessments for comparable asset and deposit levels. However, if our asset size increases or the FDIC takes other actions to replenish the DIF, our FDIC insurance premiums could increase.

Our businesses and earnings are impacted by governmental, fiscal and monetary policy.

We are affected by domestic monetary policy. For example, the Federal Reserve Board regulates the supply of money and credit in the United States and its policies determine in large part our cost of funds for lending, investing and capital raising activities and the return we earn on those loans and investments, both of which affect our net interest margin. The actions of the Federal Reserve Board also can materially affect the value of financial instruments we hold, such as loans and debt securities, and its policies also can affect our borrowers, potentially increasing the risk that they may fail to repay their loans. Our businesses and earnings also are affected by the fiscal or other policies that are adopted by various regulatory authorities of the United States. Changes in fiscal or monetary policy are beyond our control and hard to predict.

Our profitability and the value of any equity investment in us may suffer because of rapid and unpredictable changes in the highly regulated environment in which we operate.

We are subject to extensive supervision by several governmental regulatory agencies at the federal and state levels. Recently enacted, proposed and future banking and other legislation and regulations have had, and will continue to have, or may have a significant impact on the financial services industry. These regulations, which are generally intended to protect depositors and not our shareholders, and the interpretation and application of them by federal and state regulators, are beyond our control, may change rapidly and unpredictably, and can be expected to influence our earnings and growth. Our success depends on our continued ability to maintain compliance with these regulations. Many of these regulations increase our costs and thus place other financial institutions that may not be subject to similar regulation in stronger, more favorable competitive positions.

The trading volume in our common stock is less than that of other larger financial services companies.

The trading volume in our common stock is less than that of other larger financial services companies. A public trading market having the desired characteristics of depth, liquidity and orderliness depends on the presence in the marketplace of willing buyers and sellers of our common stock at any given time. This presence depends on the individual decisions of investors and general economic and market conditions over which we have no control. Given the lower trading volume of our common stock, significant sales of our common stock, or the expectation of these sales, could cause our stock price to fall.

Virginia law and the provisions of our articles of incorporation and bylaws could deter or prevent takeover attempts by a potential purchaser of our common stock that would be willing to pay you a premium for your shares of our common stock.

Our Articles of Incorporation and Bylaws contain provisions that may be deemed to have the effect of discouraging or delaying uninvited attempts by third parties to gain control of us. These provisions include the ability of our board to set the price, term, and rights of, and to issue, one or more series of our preferred stock. Our Articles of Incorporation and Bylaws do not provide for the ability of shareholders to call special meetings.

18

Similarly, the Virginia Stock Corporation Act contains provisions designed to protect Virginia corporations and employees from the adverse effects of hostile corporate takeovers. These provisions reduce the possibility that a third party could affect a change in control without the support of our incumbent directors. These provisions may also strengthen the position of current management by restricting the ability of shareholders to change the composition of the board, to affect its policies generally, and to benefit from actions that are opposed by the current board.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

The Company operates the following offices:

Corporate Headquarters:

Innslake — 4235 Innslake Drive, Glen Allen, VA 23060

Virginia Market:

Burgess — 14598 Northumberland Highway, Burgess, VA 22432

Callao — 654 Northumberland Highway, Callao, VA 22435

Centerville — 100 Broad Street Road, Manakin-Sabot, VA 23103

Courthouse — 1949 Sandy Hook Road, Goochland, VA 23063

Flat Rock — 2320 Anderson Highway, Powhatan, VA 23139

King William — 4935 Richmond-Tappahannock Highway, Manquin, VA 23106

Louisa — 217 East Main Street, Louisa, VA 23093

Mechanicsville — 6315 Mechanicsville Turnpike, Mechanicsville, VA 23111

Prince Street — 323 Prince Street, Tappahannock, VA 22560

Tappahannock — 1325 Tappahannock Boulevard, Tappahannock, VA 22560

Virginia Center — 9951 Brook Road, Glen Allen, VA 23060

West Point — 16th and Main Street, West Point, VA 23181

Winterfield — 3740 Winterfield Road, Midlothian, VA 23113

Maryland Market:

Arnold — 1460 Ritchie Highway, Arnold, MD 21012

Catonsville — 1000 Ingleside Avenue, Catonsville, MD 21228

Crofton — 2120 Baldwin Avenue, Crofton, MD 21114

Landover Hills — 7467 Annapolis Road, Landover Hills, MD 20784

Rockville — 1101 Nelson Street, Rockville, MD 20850

Rosedale — 1230 Race Road, Rosedale, MD 21237

The Company owns all of the offices listed above, except that it leases its corporate headquarters, its Winterfield office in the Virginia market and the Arnold, Landover Hills and Rockville offices in the Maryland market. The Company also has loan production offices in Fairfax and Lynchburg, Virginia, both of which it leases.

On August 16, 2013, the Company closed its office in Clinton, Maryland, which it had leased. On November 8, 2013, the Company sold its four Georgia offices in Covington, Grayson, Loganville and Snellville, Georgia, all of which it had owned.

The Company expects to relocate its corporate headquarters to 9954 Mayland Drive, Suite 2100, Richmond, Virginia 23233, on March 31, 2014, and to open a banking office there on April 1, 2014. The Company expects to open an office in Annapolis, Maryland (1835 West Street) on March 24, 2014. The Company will lease the corporate headquarters and banking office and owns the office in Annapolis.

All of the Company’s properties are in good operating condition and are adequate for the Company’s present and anticipated needs.

19

ITEM 3. LEGAL PROCEEDINGS

There are no material pending legal proceedings to which the Company, including its subsidiaries, is a party or of which its property is the subject.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

MARKET PRICES FOR SECURITIES

The Company’s common stock has traded on the NASDAQ Capital Market under the symbol “ESXB” since March 14, 2013. The common stock traded on the NYSE MKT (formerly known as the NYSE Amex) under the symbol “BTC” until March 13, 2013.

The following table sets summarizes the high and low sales prices for the Company’s common stock for the quarterly periods during the years ended December 31, 2013 and 2012:

	2013				2012
	High		Low		High		Low
Quarter ended March 31	$	3.74	$	2.54	$	2.30	$	1.03
Quarter ended June 30		3.70		3.11		2.50		1.62
Quarter ended September 30		4.00		3.50		2.95		1.77
Quarter ended December 31		3.83		3.09		2.92		2.26

HOLDERS OF RECORD

As of December 31, 2013, there were 2,998 holders of record of the Company’s common stock, not including beneficial holders of securities held in street name.

DIVIDENDS

The Company’s dividend policy is subject to the discretion of the board of directors and future cash dividend payments to stockholders will depend upon a number of factors, including future earnings, alternative investment opportunities, financial condition, cash requirements and general business conditions.

The Company’s ability to distribute cash dividends will depend primarily on the ability of its banking subsidiary to pay dividends to it. The Bank is subject to legal limitations on the amount of dividends that it is permitted to pay under Section 5199(b) of the Revised Statues (12 U.S.C. 60). The approval of the Federal Reserve would be required if the total of all dividends declared by a state member bank in any calendar year shall exceed the total of its net profits of that year combined with its retained net profits of the preceding two years. Furthermore, neither the Company nor the Bank may declare or pay a cash dividend on any of its capital stock if it is insolvent or if the payment of the dividend would render the entity insolvent or unable to pay its obligations as they become due in the ordinary course of business. For additional information on these limitations, see “Supervision and Regulation — Capital Requirements and Dividends” in Item 1 above.

Following the payment of a cash dividend in February 2010, the Company determined to suspend the payment of its quarterly dividend to holders of common stock. While the Company believes that its capital and liquidity levels remain above the averages of its peers, the Company utilizes dividends from the Bank for the payment of capital funding (Series A Preferred Stock) received from the Department of the Treasury, as outlined below. Additional dividends from the Bank would be utilized for the payment of intercompany expenses and dividend and interest payments on trust preferred securities and Series A Preferred Stock.

On December 19, 2008, the Company received $17.680 million of capital funding from the Department of the Treasury, and the capital is considered senior preferred stock. Under the terms of the Series A Preferred Stock, the Company is required to pay on a quarterly basis a dividend rate of 5% per year for the first five years, after which the dividend rate automatically increases to 9% per year. The Company made dividend payments for this capital on a quarterly basis from February 2009 through May 2010, at which

20

time the Company began deferring the payment of such dividends. The Company may defer dividend payments, but the dividend is a cumulative dividend that accumulates for payment in the future, and the failure to pay dividends for six dividend periods would trigger board appointment rights for the holder of the preferred stock. The Company paid certain deferred and current payments during 2012 and paid all remaining outstanding deferred payments on August 21, 2012.

During 2013, the Company repurchased 7,000 shares of the original 17,680 shares of Series A Preferred Stock. The Company funded the repurchase through the earnings of its banking subsidiary. The form of the repurchase was a redemption under the terms of the Series A Preferred Stock. The Company paid the Treasury $7.0 million, which represented 100% of the par value of the preferred stock repurchased plus accrued dividends with respect to such shares.

As of December 31, 2013, the Company was current in its payment of dividends with respect to the Series A Preferred Stock.

PURCHASES OF EQUITY SECURITIES BY THE ISSUER

The Company does not currently have in place a repurchase program with respect to any of its securities. In addition, the Company did not repurchase any of its securities during the year ended December 31, 2013.

STOCK PERFORMANCE GRAPH

The stock performance graph set forth below shows the cumulative stockholder return on the Company’s common stock during the period from December 31, 2008, to December 31, 2013, as compared with (i) an overall stock market index, the NASDAQ Composite Index, and (ii) a published industry index, the SNL Bank and Thrift Index. The graph assumes that $100 was invested on December 31, 2008 in the Company’s common stock and in each of the comparable indices and that dividends were reinvested.

	Period Ending
Index	12/31/08		12/31/09		12/31/10		12/31/11		12/31/12		12/31/13
Community Bankers Trust Corporation		100.00		113.86		37.18		40.72		93.83		133.13
NASDAQ Composite		100.00		145.36		171.74		170.38		200.63		281.22
SNL Bank and Thrift		100.00		98.66		110.14		85.64		115.00		157.46

21

ITEM 6 SELECTED FINANCIAL DATA

The following table sets forth selected financial data for the Company over each of the past five years ended December 31. The historical results included below and elsewhere in this report are not indicative of the future performance of the Company and its subsidiaries.

(dollars in thousands, except per share amounts)
	Year ended December 31
	2013			2012			2011			2010			2009
Results of Operations
Interest and dividend income	$	50,045		$	53,719		$	56,035		$	58,926		$	64,520
Interest expense		7,078			9,692			12,228			18,389			25,134
Net interest income		42,967			44,027			43,807			40,537			39,386
Provision for loan losses		—			1,200			1,498			27,363			19,089
Net interest income after provision for loan losses		42,967			42,827			42,309			13,174			20,297
Noninterest income		4,724			6,206			8,233			9,847			26,400
Noninterest expenses		39,288			41,303			49,038			53,456			76,120
Income (loss) before income taxes		8,403			7,730			1,504			(30,435	)		(29,423	)
Income tax expense (benefit)		2,497			2,148			60			(9,442	)		404
Net income (loss)	$	5,906		$	5,582		$	1,444		$	(20,993	)	$	(29,827	)
Financial Condition
Assets	$	1,089,532		$	1,153,288		$	1,092,496		$	1,115,594		$	1,226,723
FDIC indemnification asset		25,409			33,837			42,641			58,369			76,107
Loans, covered by FDIC shared-loss agreements		73,275			84,637			97,561			115,537			150,935
Loans, net of unearned income (excluding covered loans)		596,173			575,482			544,718			525,548			578,629
Deposits		892,341			974,318			933,491			961,725			1,031,402
Stockholders’ equity		106,659			115,317			111,180			107,127			131,102
Ratios
Return on average assets		0.53	%		0.50	%		0.13	%		(1.75	%)		(2.37	%)
Return on average equity		5.22	%		4.85	%		1.32	%		(17.53	%)		(19.31	%)
Non-GAAP return on average tangible assets (1)		0.66	%		0.65	%		0.28	%		(1.17	%)		0.30	%
Non-GAAP return on average tangible common equity (1)		8.38	%		8.31	%		3.80	%		(16.60	%)		3.74	%
Efficiency ratio (2)		82.38	%		82.22	%		94.23	%		106.10	%		115.71	%
Equity to assets		9.79	%		10.00	%		10.18	%		9.60	%		10.69	%
Loan to deposits		75.02	%		67.75	%		68.80	%		66.66	%		70.74	%
Average tangible common equity / average tangible assets		7.90	%		7.77	%		7.25	%		7.04	%		7.89	%
Asset Quality
Allowance for loan losses (non-covered)	$	10,444		$	12,920		$	14,835		$	25,543		$	18,169
Allowance for loan losses / non-covered loans (3)		1.75	%		2.25	%		2.72	%		4.86	%		3.14	%
Allowance for loan losses / nonperforming non-covered loans (3)		86.28	%		59.93	%		48.56	%		69.18	%		89.69	%
Allowance for loan losses / nonaccrual non-covered loans (3)		86.28	%		61.38	%		51.97	%		69.92	%		90.80	%
Non-covered nonperforming assets / non-covered loans and non-covered other real estate (3)		3.05	%		5.52	%		7.35	%		8.06	%		3.77	%
Per Share Data
Earnings per share, basic	$	0.22		$	0.21		$	0.02		$	(1.03	)	$	(1.43	)
Earnings per share, diluted		0.22			0.21			0.02			(1.03	)		(1.43	)
Non-GAAP earnings per share, diluted (1)		0.33			0.33			0.14			(0.64	)		0.17
Cash dividends paid		—			—			—			859			3,435
Market value per share		3.76			2.65			1.15			1.05			3.21
Book value per tangible common share		4.07			3.92			3.58			3.46			4.24
Price to earnings ratio, diluted		17.09			12.62			57.50			(1.02	)		(2.24	)
Price to common book value ratio		86.0	%		59.3	%		26.5	%		25.3	%		60.9	%

22

	Year ended December 31
	2013			2012			2011			2010			2009
Dividend payout ratio		n/a			n/a			n/a			(3.89	%)		(11.15	%)
Weighted average shares outstanding, basic		21,699,964			21,647,372			21,565,366			21,468,455			21,468,455
Weighted average shares outstanding, diluted		22,211,228			21,717,499			21,565,366			21,468,455			21,468,455
Capital Ratios
Leverage Ratio		9.52	%		9.41	%		8.91	%		8.12	%		8.93	%
Tier 1 risk-based capital ratio		15.62	%		15.79	%		15.01	%		14.40	%		14.82	%
Total risk-based capital ratio		16.82	%		16.87	%		16.16	%		15.58	%		16.03	%

(1) Refer to the “Non-GAAP Measures” section in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” for a reconciliation.

(2) The efficiency ratio is calculated by dividing noninterest expense over the sum of net interest income plus noninterest income.

(3) Excludes assets covered by FDIC shared-loss agreements.

23

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of the financial condition at December 31, 2013 and results of operations for the year ended December 31, 2013 of Community Bankers Trust Corporation (the “Company”) should be read in conjunction with the Company’s consolidated financial statements and the accompanying notes to consolidated financial statements included in this report.

GENERAL

The Company is a bank holding company that was incorporated in 2005. The Company is headquartered in Glen Allen, Virginia and is the holding company for Essex Bank (the “Bank”), a Virginia state bank with 19 full-service offices in Virginia and Maryland. The Bank also operates two loan production offices in Virginia.

The Bank was established in 1926. 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, and six are located in Maryland along the Baltimore-Washington corridor.

Prior to November 8, 2013, the Bank also had four full-service offices in Georgia. The Bank sold those offices and related deposits to Community & Southern Bank on November 8, 2013.

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, growth 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 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;

24

• the performance of vendors or other parties with which the Company does business;

• time and costs associated with de novo branching, acquisitions, dispositions and similar transactions;

• the realization of gains and expense savings from acquisitions, dispositions and similar transactions;

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

• consumer profiles and spending and savings habits;

• levels of fraud in the banking industry;

• the level of attempted cyber attacks in the banking industry;

• the securities and credit markets;

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

• 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 “Risk Factors” discussion in Part I, Item 1A, of this report.

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.

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

25

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 Bank does not separately identify individual consumer and residential loans for impairment disclosures.

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, Loans and Debt Securities Acquired with Deteriorated Credit Quality (formerly SOP 03-3), 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 covered loans acquired are subject to credit review standards described above for non-covered loans. If and when credit deterioration occurs subsequent to the acquisition date, a provision for credit loss for covered loans will be charged to earnings for the full amount without regard to the shared-loss agreements.

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 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 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.

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

26

(OREO) because it is not contractually embedded in the covered loan and OREO 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, resulting in additional noninterest income for the amount of the increase in the FDIC indemnification asset.

Other Intangibles

FASB ASC 805, Business Combinations, requires that the purchase method of accounting be used for all business combinations after June 30, 2001. With purchase acquisitions, the Company is required to record assets acquired, including any intangible assets, and liabilities assumed at fair value, which involves relying on estimates based on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analysis or other valuation methods. The Company records intangibles under FASB ASC 350, Intangibles, which states that 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 Company followed FASB ASC 350 and determined that any core deposit intangibles will be amortized over the estimated useful life. Core deposit intangible amortization expense charged to operations was $2.2 million for the year ended December 31, 2013 and $2.3 million for each of the years ended December 31, 2012 and 2011. Core deposit intangibles are 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 income. 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.

The Company and its subsidiaries are subject to U. S. federal income tax as well as various state income taxes. Years 2010 through 2013 are open to examination by the respective tax authorities

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 selling 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. The Company had $6.2 million and $10.8 million in other real estate, non-covered at December 31, 2013 and 2012, respectively, and $2.7 million and $3.4 million in other real estate, covered at December 31, 2013 and 2012, respectively.

27

OVERVIEW

At December 31, 2013, the Company had total assets of $1.090 billion, a decrease of $63.8 million, or 5.5%, from total assets of $1.153 billion at December 31, 2012. Total loans were $669.4 million at December 31, 2013, increasing $9.3 million from $660.1 million at December 31, 2012. On November 8, 2013, the Company sold $24.3 million of loans related to the Georgia franchise to another financial institution. These loans were replenished by $27.2 million of loan growth during the fourth quarter. As anticipated, the carrying value of FDIC covered loans declined $11.4 million, or 13.4%, since December 31, 2012 and were $73.3 million at December 31, 2013. Non-covered loans equaled $596.2 million at December 31, 2013, compared with $575.5 million at December 31, 2012.

The Company’s securities portfolio, including equity securities, decreased $56.1 million, or 15.6%, from $358.8 million at December 31, 2012 to $302.7 million at December 31, 2013. Realized gains were $518,000 during 2013 through sales and call activity. This is a decrease of $974,000 from $1.5 million in securities gains realized in 2012. The Company took a short-term position in a $40 million U.S. Treasury issue at December 31, 2012 to fully invest short-term excess cash balances on deposit by local municipal governments. The issue matured in the first quarter of 2013 and is the primary factor for the decrease in securities balances from December 31, 2012. The maturity of these funds was not reinvested but was offset by a decline in public funds.

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 December 31, 2013 and December 31, 2012 AFS portfolio was $265.8 million and $309.1 million, respectively. The Company had a net unrealized (loss)/gain in the AFS portfolio of $(6.0 million) and $5.9 million at December 31, 2013 and 2012, respectively.

Interest bearing deposits at December 31, 2013 were $822.2 million, a decrease of $74.1 million from December 31, 2012. During the fourth quarter, the Company added $64.9 million in short-term brokered certificates of deposit to fund the sale of the Georgia operations, which closed on November 8, 2013, resulting in the divestiture of $193.2 million in deposits. Time deposits $100,000 and over increased $40.0 million during the year ended December 31, 2013 as management obtained $64.9 million in short-term brokered certificates of deposit to fund the sale of the Georgia operations. Low cost NOW accounts decreased $40.8 million or 28.6% during 2013. Savings deposits decreased $2.3 million during the year ended December 31, 2013. Time deposits less than $100,000 decreased $51.9 million during 2013. MMDA accounts declined $19.0 million during the year ended December 31, 2013 and were $94.2 million. The sale of the Georgia operations was the overriding contributor to the declines in these various categories.

The Company had Federal Home Loan Bank advances (FHLB) of $77.1 million at December 31, 2013 compared with $49.8 million at December 31, 2012. The blended rate on the average balance of these borrowings was 1.25% for the year ended December 31, 2013. This is a decline from the year end 2012 cost of 2.59%. The Company used a combination of retail deposit growth, brokered deposits and FHLB advances to fund the sale of the Georgia operations.

Stockholders’ equity was $106.7 million at December 31, 2013 and $115.3 million at December 31, 2012. During 2013, the Company retired $7.0 million of its outstanding TARP preferred stock, which lowered its equity base. However, the equity-to-asset ratios remained solid at 9.8%, and 10.0%, respectively, at December 31, 2013 and December 31, 2012.

RESULTS OF OPERATIONS

Net Income

For the year ended December 31, 2013 compared to the year ended December 31, 2012, net income increased $324,000, or 5.8%, from net income of $5.6 million in 2012 to net income of $5.9 million in 2013. Net income available to common stockholders was $4.8 million, or $0.22 per common share on a diluted basis, for the year ended December 31, 2013 compared with net income available to common stockholders of $4.5 million, or $0.21 per common share on a diluted basis, for the year ended December 31, 2012. While the net interest margin and net interest earnings were squeezed, as has been typical in the industry, the Company benefitted from no provision for loan losses during 2013 as asset quality continues to improve.

For the year ended December 31, 2012 compared to the year ended December 31, 2011, net income increased $4.1 million, or 286.6%, from net income of $1.4 million in 2011 to net income of $5.6 million in 2012. Net income available to common stockholders was $4.5 million, or $0.21 per common share on a diluted basis, for the year ended December 31, 2012 compared with net income available to common stockholders of $354,000, or $0.02 per common share on a diluted basis, for the year ended December 31, 2011. The increase of $4.1 million in net income available to common stockholders was driven by a decrease in noninterest expense of $6.6 million, or 14.3%, a decrease in noninterest income of $907,000, or 16.8%, and a reduction in provision for loan losses of $298,000, or 19.9%. This increase was offset by an increase in income tax expense of $2.1 million.

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

28

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.”

For the year ended December 31, 2013, net interest income of $43.0 million decreased $1.1 million, or 2.4%, from net interest income of $44.0 million for the year ended December 31, 2012. The Company’s net interest spread declined from 4.46% for the year ended December 31, 2012 to 4.25% for the same period in 2013. Interest spread is the product of yield on earning assets less cost of total interest bearing liabilities. While the cost of interest bearing liabilities declined from 1.06% to 0.77% during the comparison period, the yield on earning assets declined by 50 basis points to 5.02% for the 2013 year. The result was a net interest margin of 4.32% for the year ended December 31, 2013, compared with 4.53% for the 2012 year.

Net interest income was $44.0 million for the year ended December 31, 2012, compared with $43.8 million for the year ended December 31, 2011. This represents an increase of $220,000 in net interest income for 2012. A decline of $2.3 million in the yield on earning assets was virtually offset by a decline of $2.5 million in the cost of interest bearing liabilities, which resulted in the increase of 0.5% in net interest income. The tax equivalent net interest margin decreased from 4.72% for the year ended December 31, 2011 to 4.53% for the year ended December 31, 2012. This was driven by a decrease in interest spread from 4.66% in 2011 to 4.46% in 2012.

Interest and fees on non-covered loans decreased $962,000, or 3.1%, to $29.7 million during 2013. Interest and fee income on covered loans equaled $11.9 million during 2013. Cost of interest bearing liabilities during 2013 totaled $7.1 million, of which interest on deposits was $6.4 million. This compares with $9.7 million in total interest expense and $8.5 million in interest on deposits, respectively, in 2012.

Interest and fees on non-covered loans increased $1.4 million, or 4.7%, to $30.7 million during 2012. Interest and fee income on covered loans equaled $14.1 million during 2012. Cost of interest bearing liabilities during 2012 totaled $9.7 million, of which interest on deposits was $8.5 million. This compares with $12.2 million in total interest expense and $10.8 million in interest on deposits, respectively, in 2011.

The Company’s total loan to deposit ratio was 75.02% at December 31, 2013 versus 67.75% at December 31, 2012. While total loans increased $9.3 million in 2013 compared to 2012, the 7.3% increase is mainly attributable to the $82 million decline in deposit balances in 2013, due to the Georgia branch sale.

The Company’s total loan to deposit ratio was 67.75% at December 31, 2012 versus 68.80% at December 31, 2011. The ratio remained fairly constant during the year as management was successful in generating new loan growth in the later part of 2012. This was offset by a decline of $12.9 million in the self-liquidating covered loan portfolio. Deposit balances also grew $40.8 million in 2012, which downwardly affected the total loan to deposit ratio.

29

The following table presents the total amount of average balances, interest income from average interest earning assets and the resulting yields, as well as the interest expense on average interest bearing liabilities, expressed both in dollars and rates. Except as indicated in the footnote, no tax equivalent adjustments were made. Any non-accruing loans have been included in the table as loans carrying a zero yield.

NET INTEREST MARGIN ANALYSIS

AVERAGE BALANCE SHEET

(Dollars in thousands)

	Year ended December 31, 2013								Year ended December 31, 2012								Year ended December 31, 2011
	Average Balance Sheet			Interest Income/ Expense		Average Rates Earned/ Paid			Average Balance Sheet			Interest Income/ Expense		Average Rates Earned/ Paid			Average Balance Sheet			Interest Income/ Expense		Average Rates Earned/ Paid
ASSETS:
Loans, including fees	$	585,343		$	29,696		5.07	%	$	556,113		$	30,658		5.51	%	$	510,940		$	29,272		5.73	%
Loans covered by FDIC loss share		79,140			11,936		15.08	%		91,489			14,105		15.42	%		104,558			17,576		16.81	%
Total loans		664,483			41,632		6.27	%		647,602			44,763		6.91	%		615,498			46,848		7.61	%
Interest bearing bank balances		22,423			58		0.26	%		22,425			54		0.24	%		25,678			65		0.26	%
Federal funds sold		3,453			3		0.10	%		4,254			5		0.11	%		4,036			6		0.14	%
Investments (taxable)		292,618			7,693		2.63	%		289,617			8,408		2.90	%		266,887			8,091		3.03	%
Investments (tax exempt) (1)		20,294			998		4.92	%		13,168			741		5.63	%		26,768			1,553		5.80	%
Total earning assets		1,003,271			50,384		5.02	%		977,066			53,971		5.52	%		938,867			56,563		6.02	%
Allowance for loan losses		(12,352	)							(14,601	)							(19,614	)
Non-earning assets		130,033								145,507								160,217
Total assets	$	1,120,952							$	1,107,972							$	1,079,470
LIABILITIES AND STOCKHOLDERS’ EQUITY
Demand deposits – interest bearing	$	238,545		$	742		0.31	%	$	238,418		$	859		0.36	%	$	234,180		$	1,323		0.56	%
Savings		81,368			277		0.34	%		74,129			256		0.35	%		67,469			347		0.51	%
Time deposits		546,788			5,351		0.98	%		556,784			7,393		1.33	%		558,239			9,145		1.64	%
Total interest bearing deposits		866,701			6,370		0.73	%		869,331			8,508		0.98	%		859,888			10,815		1.26	%
Fed funds purchased		558			4		0.73	%		1,348			9		0.64	%		191			1		0.63	%
FHLB and other borrowings		56,269			704		1.25	%		45,359			1,175		2.59	%		41,124			1,412		3.43	%
Total interest bearing liabilities		923,528			7,078		0.77	%		916,038			9,692		1.06	%		901,203			12,228		1.36	%
Non-interest bearing deposits		80,326								72,391								64,150
Other liabilities		3,933								4,532								4,998
Total liabilities		1,007,787								992,961								970,351
Stockholders’ equity		113,165								115,011								109,119
Total liabilities and Stockholders’ equity	$	1,120,952							$	1,107,972							$	1,079,470
Net interest earnings				$	43,306							$	44,279							$	44,335
Interest spread							4.25	%							4.46	%							4.66	%
Net interest margin							4.32	%							4.53	%							4.72	%

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

30

The following table presents changes in interest income and interest expense and distinguishes between the changes related to increases or decreases in average outstanding balances of interest earning assets and interest bearing liabilities (volume), and the changes related to increases or decreases in average interest rates on such assets and liabilities (rate). No tax equivalent adjustments were made.

EFFECT OF RATE-VOLUME CHANGE ON NET INTEREST INCOME

FOR THE YEAR ENDED DECEMBER 31, 2013 AND 2012

(Dollars in thousands)

	2013 compared to 2012									2012 compared to 2011
	Increase (Decrease)									Increase (Decrease)
	Volume			Rate			Total			Volume			Rate			Total
Interest Income:
Loans, including fees	$	1,611		$	(2,573	)	$	(962	)	$	2,588		$	(1,202	)	$	1,386
Loans covered by FDIC loss share		(1,904	)		(265	)		(2,169	)		(2,197	)		(1,274	)		(3,471	)
Interest bearing bank balances		—			4			4			(8	)		(3	)		(11	)
Federal funds sold		(1	)		(1	)		(2	)		—			(1	)		(1	)
Investments		298			(843	)		(545	)		283			(502	)		(219	)
Total earning assets		4			(3,678	)		(3,674	)		666			(2,982	)		(2,316	)
Interest Expense:
Demand deposits		—			(117	)		(117	)		24			(488	)		(464	)
Savings deposits		25			(4	)		21			34			(123	)		(89	)
Time deposits		(133	)		(1,909	)		(2,042	)		(24	)		(1,730	)		(1,754	)
Total deposits		(108	)		(2,030	)		(2,138	)		34			(2,341	)		(2,307	)
Other borrowed funds		256			(731	)		(475	)		184			(413	)		(229	)
Total interest bearing liabilities		148			(2,761	)		(2,613	)		218			(2,754	)		(2,536	)
Net increase (decrease) in net interest income	$	(144	)	$	(917	)	$	(1,061	)	$	448		$	(228	)	$	220

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.

The Company did not record a provision for loan losses in 2013. The Company records a separate provision for loan losses for its non-covered loan portfolio and its FDIC covered loan portfolio. There was no provision for loan losses on the FDIC covered loan portfolio during 2013. Likewise, there was no provision for loan losses on the non-covered loan portfolio during 2013. For the non-covered loan portfolio, this was the direct result of continued improvement in loan quality as evidenced by the decreasing amount of nonaccrual loans as well as a much lower volume of net charge-offs taken during the year versus the prior two years. A decrease in the level of nonperforming assets to loans and other real estate owned and the level of net charge-offs for the periods has resulted in the increased coverage levels.

The provision for loan losses was $1.2 million for the year ended December 31, 2012 compared with $1.5 million for the year ended December 31, 2011. The provision for loan losses on non-covered loans was $1.5 million for the year ended December 31, 2012 compared with $1.5 million for the year ended December 31, 2011. The provision for loan losses on covered loans was a $250,000 credit for the year ended December 31, 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 year ended December 31, 2011.

31

The allowance for loan losses was 86.3% of non-covered nonaccrual loans at December 31, 2013, compared with 61.4% of non-covered nonaccrual loans at December 31, 2012. The ratio of allowance for loan losses to total non-covered loans was 1.75% at December 31, 2013, compared with 2.25% at December 31, 2012. Net charged-off loans were $2.5 million in 2013, compared with $3.4 million in 2012.

While the covered loan portfolio contains significant risk, it was considered in determining the initial fair value, which was reflected in adjustments recorded at the time of the SFSB transaction, less the FDIC guaranteed portion of losses on covered assets. See the Asset Quality discussion below for further analysis.

Noninterest Income

Noninterest income declined $1.5 million, or 23.9%, when comparing the years ended December 31, 2013 and December 31, 2012. Noninterest income of $4.7 million for 2013 compares with $6.2 million for 2012. A decrease of $974,000 in gains on sales of securities represented the largest decrease. Realized gains were $1.5 million in 2012 compared with $518,000 for the same period in 2013. During much of 2012, the Company repositioned the securities portfolio to reduce interest rate risk in a rising rate environment. Gain/(loss) on sale of other loans declined $359,000 and other noninterest income declined $152,000, the result of fewer billable losses under shared-loss agreements reimbursed by the FDIC.

For the year ended December 31, 2012, noninterest income equaled $6.2 million, compared with $8.2 million for the year ended December 31, 2011. This reduction of $2.0 million was due to a decrease in gain on sale of securities of $1.4 million, from $2.9 million for the year ended December 31, 2011 to $1.5 million for the same period in 2012. Other noninterest income also declined $884,000 for the year ended December 31, 2012 compared with the same period in 2011. Other noninterest income was $2.0 million for the year ended December 31, 2012 and $2.9 million for the year ended December 31, 2011.

Noninterest Expenses

For the year ended December 31, 2013, noninterest expenses were $39.3 million, a decrease of $2.0 million from noninterest expenses of $41.3 million for the year ended December 31, 2012. FDIC assessment declined $642,000, or 43.2%, from $1.5 million for the year ended December 31, 2012 to $843,000 for the year ended December 31, 2013 due to rate decreases by the FDIC. Salaries and employee benefits were down $530,000, or 3.2%, for the same time frame. This was the result of a combination of the decrease in workforce due to the Georgia branch sale and attrition absorbed by the Company. FDIC indemnification asset amortization of $6.4 million for the year ended December 31, 2013 represented a decrease of $487,000, or 7.0%, from $6.9 million during 2012. Amortization of the FDIC indemnification asset is the result of better than expected performance on the covered loan portfolio. This better than expected performance also resulted in increased accretable yield and interest income on the covered loan portfolio.

For the year ended December 31, 2012, noninterest expenses declined $7.7 million, or 15.8%, when compared with the same period in 2011. Noninterest expenses were $49.0 million for the year ended December 31, 2011 and declined to $41.3 million for the same period in 2012. FDIC indemnification asset amortization was the largest component of this change, from $10.4 million for the year ended December 31, 2011 to $6.9 million for the year ended December 31, 2012. This represents a decrease of $3.4 million or 33.1%. FDIC assessment decreased $1.3 million, and was $2.8 million for the year ended December 31, 2011 compared with $1.5 million for the same period in 2012, a decrease of 46.7%. Other real estate expense declined $1.3 million, or 34.2%, from $3.8 million for the year ended December 31, 2011 to $2.5 million for the same period in 2012. The main contributor to this decline was a $1.0 million reduction in loss on OREO sale and valuation expense. Other operating expenses were $5.5 million and declined $663,000 from $6.2 million for the year ended December 31, 2011. Additional declines for the year ended December 31, 2012 compared with the year ended December 31, 2011 were $393,000 in legal fees, $192,000 in professional fees, $179,000 in occupancy expenses, $150,000 in equipment expenses, $92,000 in salaries and employee benefits and $40,000 in data processing fees. The decrease in legal fees and professional fees were primarily a reflection of improved credit quality. Other improvements reflect a concerted effort on the part of management to drive overhead expenses lower.

Income Taxes

For the year ended December 31, 2013, income tax expense was $2.5 million, compared with income tax expense of $2.1 million and $60,000 for the years ended December 31, 2012 and 2011, respectively.

The Company has evaluated the need for a deferred tax valuation allowance for the years ended December 31, 2013 and 2012 in accordance with FASB ASC 740, Income Taxes. 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, the Company believes that it is more likely than not that the deferred tax assets are realizable. Therefore, no allowance was required.

32

Loans

Total loans, including FDIC covered loans, at December 31, 2013 were $669.4 million, an increase of $9.3 million, compared with $660.1 million at December 31, 2012. The fair value of covered loans aggregated $73.3 million and $84.6 million at December 31, 2013 and 2012, respectively. The non-covered loan portfolio increased $20.7 million, or 3.6% during 2013. Excluding the sale of $24.3 million in loans related to the Company’s former Georgia branches, loan growth would have been $45.0 million during 2013. The Company is aggressively working to change the mix of the non-covered portfolio away from large construction and land development loans and more into commercial, small business and consumer secured installment loans.

The following tables indicate the total dollar amount of loans outstanding and the percentage of gross loans as of December 31 of the years presented (dollars in thousands):

	2013
	Non-covered loans					Covered Loans				Total Loans
Mortgage loans on real estate
Residential 1-4 family	$	141,974		23.81	%	$	64,610	88.18	%	$	206,584		30.85	%
Commercial		239,389		40.14			1,389	1.90			240,778		35.96
Construction and land development		54,745		9.18			2,940	4.01			57,685		8.61
Second mortgages		6,369		1.07			3,898	5.32			10,267		1.53
Multifamily		35,774		6.00			266	0.36			36,040		5.38
Agriculture		9,267		1.55			172	0.23			9,439		1.42
Total real estate loans		487,518		81.75			73,275	100.00			560,793		83.75
Commercial loans		101,761		17.07			—	—			101,761		15.20
Consumer installment loans		5,623		0.94			—	—			5,623		0.84
All other loans		1,435		0.24			—	—			1,435		0.21
Gross loans		596,337		100.00	%		73,275	100.00	%		669,612		100.00	%
Less unearned income on loans		(164	)				—				(164	)
Loans, net of unearned income	$	596,173				$	73,275			$	669,448

	2012
	Non-covered loans					Covered Loans				Total Loans
Mortgage loans on real estate
Residential 1-4 family	$	135,420		23.53	%	$	74,046	87.47	%	$	209,466		31.73	%
Commercial		246,521		42.83			1,986	2.35			248,507		37.64
Construction and land development		61,127		10.62			3,264	3.86			64,391		9.75
Second mortgages		7,230		1.26			4,864	5.75			12,094		1.83
Multifamily		28,683		4.98			304	0.36			28,987		4.39
Agriculture		10,359		1.79			172	0.20			10,531		1.59
Total real estate loans		489,340		85.01			84,636	99.99			573,976		86.93
Commercial loans		77,835		13.52			—	—			77,835		11.79
Consumer installment loans		6,929		1.20			1	0.01			6,930		1.05
All other loans		1,526		0.27			—	—			1,526		0.23
Gross loans		575,630		100.00	%		84,637	100.00	%		660,267		100.00	%
Less unearned income on loans		(148	)				—				(148	)
Loans, net of unearned income	$	575,482				$	84,637			$	660,119

33

	2011
	Non-covered loans					Covered Loans				Total Loans
Mortgage loans on real estate
Residential 1-4 family	$	127,200		23.34	%	$	84,734	86.85	%	$	211,934		32.99	%
Commercial		220,471		40.46			2,170	2.22			222,641		34.65
Construction and land development		75,691		13.89			4,260	4.38			79,951		12.44
Second mortgages		8,129		1.49			5,894	6.04			14,023		2.18
Multifamily		19,746		3.62			316	0.32			20,062		3.12
Agriculture		11,444		2.10			179	0.18			11,623		1.81
Total real estate loans		462,681		84.90			97,553	99.99			560,234		87.19
Commercial loans		72,149		13.24			—	—			72,149		11.23
Consumer installment loans		8,461		1.55			8	0.01			8,469		1.32
All other loans		1,659		0.31			—	—			1,659		0.26
Gross loans		544,950		100.00	%		97,561	100.00	%		642,511		100.00	%
Less unearned income on loans		(232	)				—				(232	)
Loans, net of unearned income	$	544,718				$	97,561			$	642,279

	2010
	Non-covered loans					Covered Loans				Total Loans
Mortgage loans on real estate
Residential 1-4 family	$	137,522		26.15	%	$	99,312	85.96	%	$	236,834		36.92	%
Commercial		205,034		38.99			2,800	2.42			207,834		32.40
Construction and land development		103,763		19.73			5,751	4.98			109,514		17.08
Second mortgages		9,680		1.84			7,542	6.53			17,222		2.69
Multifamily		9,831		1.87			38	0.03			9,869		1.54
Agriculture		3,820		0.73			—	—			3,820		0.60
Total real estate loans		469,650		89.31			115,443	99.92			585,093		91.23
Commercial loans		44,368		8.44			—	—			44,368		6.92
Consumer installment loans		9,811		1.87			94	0.08			9,905		1.54
All other loans		1,993		0.38			—	—			1,993		0.31
Gross loans		525,822		100.00	%		115,537	100.00	%		641,359		100.00	%
Less unearned income on loans		(274	)				—				(274	)
Loans, net of unearned income	$	525,548				$	115,537			$	641,085

	2009
	Non-covered loans					Covered Loans				Total Loans
Mortgage loans on real estate
Residential 1-4 family	$	146,141		25.22	%	$	119,065	78.88	%	$	265,206		36.31	%
Commercial		188,991		32.62			5,835	3.87			194,826		26.68
Construction and land development		144,297		24.91			17,020	11.28			161,317		22.09
Second mortgages		13,935		2.41			8,194	5.43			22,129		3.03
Multifamily		11,995		2.07			—	—			11,995		1.64
Agriculture		5,516		0.95			627	0.41			6,143		0.84
Total real estate loans		510,875		88.18			150,741	99.87			661,616		90.59
Commercial loans		42,157		7.28			—	—			42,157		5.77
Consumer installment loans		14,145		2.44			194	0.13			14,339		1.97
All other loans		12,205		2.10			—	—			12,205		1.67
Gross loans		579,382		100.00	%		150,935	100.00	%		730,317		100.00	%
Less unearned income on loans		(753	)				—				(753	)
Loans, net of unearned income	$	578,629				$	150,935			$	729,564

34

The following table indicates the contractual maturity of commercial and construction and land development loans as of December 31, 2013 (dollars in thousands):

	Non-covered loans				Covered loans
	Commercial		Construction and land development		Commercial		Construction and land development
Within 1 year	$	40,451	$	35,567	$	—	$	—
Variable Rate
One to Five Years	$	14,274	$	1,893	$	—	$	—
After Five Years		16,311		2,767		—		2,940
Total	$	30,585	$	4,660	$	—	$	2,940
Fixed Rate
One to Five Years	$	25,447	$	12,520	$	—	$	—
After Five Years		5,278		1,998		—		—
Total	$	30,725	$	14,518	$	—	$	—
Total Maturities	$	101,761	$	54,745	$	—	$	2,940

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, nonperforming 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 nonperforming loan list is used to monitor such loans and is used in the determination of the appropriateness of the allowance for loan losses. At December 31, 2013, nonperforming assets totaled $18.3 million and net charge-offs were $2.5 million. This compares with nonperforming assets of $32.4 million and net charge-offs of $3.4 million for the year ended December 31, 2012.

Nonperforming non-covered loans were $12.1 million at December 31, 2013 compared to $21.6 million at December 31, 2012, a $9.5 million decrease. Additions to nonaccrual loans during 2013 totaled $2.6 million, primarily attributable to five relationships relating to loans for residential property, totaling $1.6 million, which are secured by real estate. The remaining increase related primarily to smaller residential property relationships, which are also secured by real estate. There were $2.7 million in charge-offs taken during 2013 centered in commercial real estate loans. There were $5.4 million in paydowns during the period and $2.3 million in loans returned to accruing status. Foreclosures for the period totaled $1.7 million.

35

The following table sets forth selected asset quality data and ratios with respect to non-covered assets at December 31 of the years presented (dollars in thousands):

	2013			2012			2011			2010			2009
Nonaccrual loans	$	12,105		$	21,048		$	28,542		$	36,532		$	20,011
Loans past due 90 days and accruing interest		—			509			2,005			389			247
Total nonperforming non-covered loans		12,105			21,557			30,547			36,921			20,258
Other real estate owned – non-covered		6,244			10,793			10,252			5,928			1,586
Total nonperforming non-covered assets	$	18,349		$	32,350		$	40,799		$	42,849		$	21,844
Accruing troubled debt restructure loans	$	9,922		$	9,990		$	5,946		$	4,007		$	—
Balances
Specific reserve on impaired loans	$	1,604		$	2,656		$	2,765		$	7,666		$	8,779
General reserve related to impaired loans evaluated as a pool (1)		—			—			—			1,882			—
General reserve related to unimpaired loans		8,840			10,264			12,070			15,995			9,390
Total allowance for loan losses		10,444			12,920			14,835			25,543			18,169
Average loans during the year, net of unearned income		585,343			556,113			510,940			562,581			554,875
Impaired loans		13,801			22,365			35,158			44,974			56,456
Unimpaired loans		582,372			553,117			509,560			480,574			522,173
Total loans, net of unearned income	$	596,173		$	575,482		$	544,718		$	525,548		$	578,629
Ratios
Allowance for loan losses to loans		1.75	%		2.25	%		2.72	%		4.86	%		3.14	%
Allowance for loan losses to nonperforming assets		56.92	%		39.94	%		36.36	%		59.61	%		83.18	%
Allowance for loan losses to nonaccrual loans		86.28	%		61.38	%		51.98	%		69.92	%		90.80	%
General reserve to unimpaired loans		1.52	%		1.86	%		2.37	%		3.33	%		1.80	%
Nonperforming assets to loans and other real estate		3.05	%		5.52	%		7.35	%		8.06	%		3.77	%
Net charge-offs to average loans		0.42	%		0.60	%		2.39	%		3.40	%		1.42	%

⁽¹⁾  As of first quarter 2011, the Company included the reserve on impaired loans evaluated as a pool as part of the specific reserve. The amount of this reserve was $346,000 as of December 31, 2011. Impaired loans were not evaluated as pools in 2009.

At December 31, 2013, the Company had six construction and land development credit relationships in nonaccrual status. The borrowers for all of these relationships are residential land developers. All of the relationships are secured by the real estate to be developed, and all of such projects are in the Company’s central Virginia market. The total amount of the credit exposure outstanding at December 31, 2013 was $5.9 million. These loans have either been charged down or sufficiently reserved against to equate to the current expected realizable value.

During 2013, the Company charged off $600,000 with respect to one of these relationships. The total amount of the allowance for loan losses attributed to all six relationships was $508,000 at December 31, 2013, or 8.64% 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 orders 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.

The Company performs troubled debt restructures (TDR) and other various loan workouts whereby an existing loan may be restructured into multiple new loans. The Company had 17 loans for each of the years ended December 31, 2013 and 2012, 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. There were four loans at December 31, 2013 and three loans at December 31, 2012 that were restructured using multiple new loans. At December 31, 2013 and 2012, the aggregated outstanding principal of all TDRs was $11.1 million and $10.0 million, respectively, of which $1.2 million and $2.4 million, respectively, 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 loan is charged-off or a specific loan loss reserve is established.

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

36

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.

The following table presents the composition of the Company’s nonaccrual loans as of December 31 of the years presented (dollars in thousands):

	2013		2012		2011		2010		2009
Mortgage loans on real estate
Residential 1-4 family	$	4,229	$	5,562	$	5,320	$	9,600	$	4,750
Commercial		1,382		5,818		9,187		7,181		3,861
Construction and land development		5,882		8,815		12,718		16,854		10,115
Second mortgages		225		141		189		218		194
Multifamily		—		—		—		—		—
Agriculture		205		250		53		—		—
Total real estate loans		11,923		20,586		27,467		33,853		18,920
Commercial loans		127		385		1,003		2,619		174
Consumer installment loans		55		77		72		60		910
All other loans		—		—		—		—		7
Gross loans	$	12,105	$	21,048	$	28,542	$	36,352	$	20,011

As of December 31, 2013 and 2012, total impaired non-covered loans equaled $13.8 million and $22.4 million, respectively.

Asset Quality – covered assets

Loans accounted for under FASB 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.

For more information regarding the shared-loss agreements, see the discussion of the allowance for covered loans under the “Critical Accounting Policies” section of this item.

Allowance for Credit Losses on Non-covered loans

The following table indicates the dollar amount of the allowance for loan losses, including charge-offs and recoveries by loan type and related ratios as of December 31 of the years presented (dollars in thousands):

	2013			2012			2011			2010			2009
Balance, beginning of year	$	12,920		$	14,835		$	25,543		$	18,169		$	6,939
Loans charged-off:
Commercial		325			695			3,615			2,125			434
Real estate		2,999			4,582			8,891			17,307			7,753
Consumer and other loans		167			220			288			628			414
Total loans charged-off		3,491			5,497			12,794			20,060			8,601
Recoveries:
Commercial		82			242			207			178			22
Real estate		857			1,807			176			691			614
Consumer and other loans		76			83			205			82			106
Total recoveries		1,015			2,132			588			951			742
Net charge-offs		2,476			3,365			12,206			19,109			7,859
Provision for loan losses		—			1,450			1,498			26,483			19,089
Balance, end of year	$	10,444		$	12,920		$	14,835		$	25,543		$	18,169
Allowance for loan losses to non-covered loans		1.75	%		2.25	%		2.72	%		4.86	%		3.14	%
Net charge-offs to average non-covered loans		0.42	%		0.61	%		2.39	%		3.40	%		1.42	%
Allowance to nonperforming non-covered loans		86.28	%		59.93	%		48.56	%		69.18	%		89.69	%

37

During 2013, the Bank’s net charge-offs decreased $889,000 from the prior year and were primarily centered in real estate. Net charge-offs by loan category to total net charge-offs were the following for 2013: 9.8% for commercial loans, 86.5% for real estate loans, and 3.7% for consumer loans.

During 2012, the Bank’s net charge-offs decreased $8.8 million from the prior year and were primarily centered in real estate. Net charge-offs by loan category to total net charge-offs were the following for 2012: 13.4% for commercial loans, 82.5% for real estate loans, and 4.1% for consumer loans.

While the entire allowance is available to cover charge-offs from all loan types, the following table indicates the dollar amount allocation of the allowance for loan losses by loan type, as well as the ratio of the related outstanding loan balances to non-covered loans as of December 31 of the years presented (dollars in thousands):

	2013					2012					2011					2010					2009
	amount		%(1)			amount		%(1)			amount		%(1)			amount		%(1)			amount		%(1)
Commercial	$	1,674		17.1	%	$	1,961		13.5	%	$	1,810		13.2	%	$	2,691		8.4	%	$	2,442		7.3	%
Construction and land development		2,212		9.2	%		3,773		10.6	%		5,729		13.9	%		10,039		19.7	%		4,972		24.9	%
Real estate mortgage		6,434		72.6	%		6,973		74.4	%		7,044		71.0	%		12,481		69.6	%		10,284		63.3	%
Consumer and other		124		1.1	%		213		1.5	%		252		1.9	%		332		2.3	%		471		4.5	%
Total allowance	$	10,444		100	%	$	12,920		100	%	$	14,835		100	%	$	25,543		100	%	$	18,169		100	%

(1) The percentage represents the loan balance divided by total non-covered loans.

Allowance for Credit Losses on Covered Loans

The covered loans are subject to credit review standards for non-covered loans. If and when credit deterioration occurs subsequent to the date that they were acquired, a provision for credit loss for covered loans will be charged to earnings for the full amount without regard to the 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 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.

Securities

As of December 31, 2013, securities equaled $302.7 million, a decrease of $56.1 million, or 15.6%, from the prior year end. At December 31, 2013, the Company had securities designated available for sale of $265.8 million and held to maturity of $28.6 million, with equity securities totaling $8.4 million. In 2013, the Company realized $342,000 in gains on sales of securities, net of tax. The Company took a short-term position in a $40 million U.S. Treasury issue at December 31, 2012 to fully invest short-term excess cash balances on deposit by local municipal governments. The issue matured in the first quarter of 2013 and is the primary factor for the decrease in securities balances from December 31, 2012. The maturity of these funds was not reinvested but was offset by a decline in public funds.

As of December 31, 2012, securities equaled $358.8 million, an increase of $54.7 million, or 18.0%, from the prior year end. At December 31, 2012, the Company had securities designated available for sale of $309.1 million and held to maturity of $42.3 million, with equity securities totaling $7.4 million. In 2012, the Company realized $985,000 in gains on sales of securities, net of tax. 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. The Company 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. Additionally, the Company took a short-term position in a $40 million U.S. Treasury issue at December 31, 2012 to fully invest excess cash and due balances.

38

The following table summarizes the securities portfolio by contractual maturity and issuer, including weighted average yields, excluding restricted stock, as of December 31, 2013 (dollars in thousands):

	1 Year or Less			1-5 Years			5-10 Years			Over 10 Years			Total
U.S. Treasury issue and other U.S. government agencies
Amortized Cost	$	4,111		$	14,963		$	20,373		$	60,829		$	100,276
Fair Value		4,051			14,978			20,252			60,192			99,473
Weighted Average Yield		0.00	%		(0.37	)%		1.59	%		2.22	%		1.61	%
State, county and municipal
Amortized Cost		1,404			17,941			113,466			15,458			148,269
Fair Value		1,429			18,333			110,374			14,062			144,198
Weighted Average Yield		3.42	%		3.60	%		3.66	%		3.66	%		3.65	%
Corporate and other securities
Amortized Cost		2,247			2,228			1,025			869			6,369
Fair Value		2,245			2,237			1,005			863			6,350
Weighted Average Yield		1.93	%		1.57	%		0.98	%		1.14	%		1.54	%
Mortgage backed securities
Amortized Cost		1,052			32,508			8,249			3,608			45,417
Fair Value		1,077			33,358			8,187			3,439			46,061
Weighted Average Yield		4.03	%		3.37	%		1.52	%		2.10	%		2.67	%
Total
Amortized Cost		8,814			67,640			143,113			80,764			330,331
Fair Value		8,802			68,906			139,818			78,556			296,082
Weighted Average Yield		1.52	%		2.54	%		3.22	%		2.47	%		2.82	%

The amortized cost and fair value of securities available for sale and held to maturity as of December 31 of the years presented are as follows (dollars in thousands):

	December 31, 2013
			Gross Unrealized
	Amortized Cost		Gains		Losses			Fair Value
Securities Available for Sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	99,789	$	165	$	(967	)	$	98,987
U.S. Gov’t sponsored agencies		487		0		(1	)		486
State, county and municipal		138,884		1,297		(6,085	)		134,096
Corporate and other bonds		6,369		27		(47	)		6,349
Mortgage backed – U.S. Gov’t agencies		3,608		29		(198	)		3,439
Mortgage backed – U.S. Gov’t sponsored agencies		22,631		69		(280	)		22,420
Total Securities Available for Sale	$	271,768	$	1,587	$	(7,578	)	$	265,777
Securities Held to Maturity
State, county and municipal	$	9,385	$	718	$	—		$	10,103
Mortgage backed – U.S. Gov’t agencies		6,604		398		—			7,002
Mortgage backed – U.S. Gov’t sponsored agencies		12,574		626		—			13,200
Total Securities Held to Maturity	$	28,563	$	1,742	$	—		$	30,305

39

	December 31, 2012
			Gross Unrealized
	Amortized Cost		Gains		Losses			Fair Value
Securities Available for Sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	153,480	$	362	$	(565	)	$	153,277
U.S. Gov’t sponsored agencies		500		3		—			503
State, county and municipal		112,110		5,757		(271	)		117,596
Corporate and other bonds		7,530		96		(8	)		7,618
Mortgage backed – U.S. Gov’t agencies		15,192		378		(10	)		15,560
Mortgage backed – U.S. Gov’t sponsored agencies		14,349		258		(83	)		14,524
Total Securities Available for Sale	$	303,161	$	6,854	$	(937	)	$	309,078
Securities Held to Maturity
State, county and municipal	$	11,825	$	1,142	$	—		$	12,967
Mortgage backed – U.S. Gov’t agencies		9,112		615		—			9,727
Mortgage backed – U.S. Gov’t sponsored agencies		21,346		1,188		—			22,534
Total Securities Held to Maturity	$	42,283	$	2,945	$	—		$	45,228

	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

Deposits

The Company’s lending and investing activities are funded primarily through its deposits. The following table summarizes the average balance and average rate paid on deposits by product for the periods ended December 31 of the years presented (dollars in thousands):

	2013					2012					2011
	Average Balance		Average Rate Paid			Average Balance		Average Rate Paid			Average Balance		Average Rate Paid
NOW	$	128,965		0.21	%	$	124,456		0.28	%	$	112,152		0.33	%
MMDA		109,580		0.43	%		113,962		0.45	%		122,028		0.78	%
Savings		81,368		0.34	%		74,129		0.35	%		67,469		0.51	%
Time deposits less than $100,000		287,908		1.00	%		314,559		1.34	%		348,695		1.64	%
Time deposits $100,000 and over		258,880		0.95	%		242,225		1.31	%		209,544		1.64	%
Total deposits	$	866,701		0.73	%	$	869,331		0.98	%	$	859,888		1.26	%

40

The Company derives a significant amount of its deposits through time deposits, and certificates of deposit specifically. The following table summarizes the contractual maturity of time deposits $100,000 or more, as of December 31, 2013 (dollars in thousands):

Within 3 months	$	42,222
3-6 months		58,871
6-12 months		98,148
over 12 months		116,046
Total	$	315,287

Other Borrowings

The Company uses borrowings in conjunction with deposits to fund lending and investing activities. Borrowings include funding of a short-term and long-term nature. Short-term funding includes overnight borrowings from correspondent banks. Long-term borrowings are obtained through the FHLB of Atlanta. The following information is provided for borrowings balances, rates, and maturities as of December 31 of the years presented (dollars in thousands):

	2013			2012			2011
Short-term:
Fed Funds purchased	$	—		$	5,412		$	—
Securities sold under agreements to repurchase		6,000			—			—
Total short-term borrowings	$	6,000		$	5,412		$	—
Maximum month-end outstanding balance	$	9,722		$	16,446		$	1,440
Average outstanding balance during the year	$	1,451		$	1,348		$	191
Average interest rate during the year		0.55	%		0.64	%		0.63	%
Average interest rate at end of year		0.45	%		0.43	%		—
Long-term:
Federal Home Loan Bank advances	$	77,125		$	49,828		$	37,000
Maximum month-end outstanding balance	$	77,303		$	50,000		$	37,000
Average outstanding balance during the year	$	51,252		$	41,235		$	37,000
Average interest rate during the year		1.10	%		2.40	%		3.21	%
Average interest rate at end of year		0.66	%		1.24	%		3.21	%

Maturities
2014	$	30,000
2015		20,000
2016		10,000
2017		5,000
2018		—
Thereafter		12,125
Total	$	77,125

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.

41

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. A summary of the Company’s liquid assets at December 31, 2013 and 2012 was as follows (dollars in thousands):

	2013			2012
Cash and due from banks	$	10,857		$	12,502
Interest bearing bank deposits		12,978			11,635
Federal funds sold		—			—
Available for sale securities, at fair value, unpledged		185,278			230,036
Total liquid assets	$	209,113		$	254,173
Deposits and other liabilities		982,873			1,037,972
Ratio of liquid assets to deposits and other liabilities		21.28	%		24.49	%

Capital Resources

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 adequacy of the Company’s capital is reviewed by management on an ongoing basis with reference to size, composition, and quality of the Company’s balance sheet. Moreover, capital levels are regulated and compared with industry standards. Management seeks to maintain a capital level exceeding regulatory statutes of “well capitalized” that is consistent to its overall growth plans, yet allows the Company to provide the optimal return to its shareholders.

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 allowance for loan losses. “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 adjusted average total assets.

The following table shows the Company’s capital ratios at the dates indicated (dollars in thousands):

	As of December 31
	2013					2012
	Amount		Ratio			Amount		Ratio
Total capital to risk weighted assets
Company	$	113,805		16.82	%	$	112,463		16.99	%
Bank		113,624		16.79	%		111,687		16.87	%
Tier 1 capital to risk weighted assets
Company		105,672		15.62	%		104,521		15.79	%
Bank		105,489		15.59	%		103,745		15.67	%
Tier 1 capital to adjusted average total assets
Company		105,672		9.52	%		104,521		9.41	%
Bank		105,489		9.50	%		103,745		9.34	%

All capital ratios exceed regulatory minimums for well capitalized institutions as referenced in Note 20 to the Consolidated Financial Statements.

On December 12, 2003, BOE Statutory Trust I, a wholly-owned subsidiary of BOE, was formed for the purpose of issuing redeemable capital securities. On December 12, 2003, $4.124 million of trust preferred securities were issued through a direct placement. The securities have a LIBOR-indexed floating rate of interest. The average interest rate at December 31, 2013, 2012 and 2011 was 3.28%, 3.57% and 3.43%, respectively. The securities have a mandatory redemption date of December 12, 2033 and are subject to varying call provisions which began December 12, 2008. The trust preferred notes may be included in tier 1 capital for regulatory capital adequacy determination purposes up to 25% of tier 1 capital after its inclusion. The portion of the trust preferred not

42

considered as tier 1 capital may be included in tier 2 capital. At December 31, 2013 and December 31, 2012, all trust preferred notes were included in tier 1 capital.

On December 19, 2008, the Company entered into a Purchase Agreement with the U.S. Treasury pursuant to which it issued 17,680 shares of the Company’s Fixed Rate Cumulative Perpetual Preferred Stock, Series A, having a liquidation preference of $1,000 per share, for a total price of $17.68 million. The issuance was made pursuant to the Treasury’s Capital Purchase Plan under TARP. The Preferred Stock pays a cumulative dividend at a rate of 5% per year during the first five years and thereafter at 9% per year. As part of its purchase of the Series A Preferred Stock, the Treasury received a warrant to purchase 780,000 shares of the Company’s common stock at an initial per share exercise price of $3.40.

During 2013, the Company repurchased 7,000 shares of the original 17,680 shares of Series A Preferred Stock. The Company funded the repurchase through the earnings of its banking subsidiary. The form of the repurchase was a redemption under the terms of the Series A Preferred Stock. The Company paid the Treasury $7.0 million, which represented 100% of the par value of the preferred stock repurchased plus accrued dividends with respect to such shares.

Off-Balance Sheet Arrangements

A summary of the contract amount of the Bank’s exposure to off-balance sheet risk as of December 31, 2013 and 2012, is as follows (dollars in thousands):

	2013		2012
Commitments with off-balance sheet risk:
Commitments to extend credit	$	72,183	$	64,056
Standby letters of credit		9,978		9,487
Total commitments with off-balance sheet risk	$	82,161	$	73,543
Commitments with balance sheet risk:
Loans held for sale	$	100	$	1,266
Total commitments with balance sheet risk		100		1,266
Total commitments	$	82,261	$	74,809

Commitments to extend credit are agreements to lend to a client 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 client’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company 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 clients. Those lines of credit may be drawn upon only to the total extent to which the Company is committed.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a client 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 Company holds certificates of deposit, deposit accounts and real estate as collateral supporting those commitments for which collateral is deemed necessary.

A summary of the Company’s contractual obligations at December 31, 2013 is as follows (dollars in thousands):

	Total		Less Than 1 Year		1-3 Years		4-5 Years		More Than 5 Years
Trust preferred debt	$	4,124	$	—	$	—	$	—	$	4,124
Federal Home Loan Bank advances		77,125		42,125		30,000		5,000		—
Operating leases		6,224		758		1,344		1,180		2,942
Total contractual obligations	$	87,473	$	42,883	$	31,344	$	6,180	$	7,066

Financial Ratios

Financial ratios give investors a way to compare companies within industries to analyze financial performance. Return on average assets is net income as a percentage of average total assets. It is a key profitability ratio that indicates how effectively a bank has used its total resources. Return on average equity is net income as a percentage of average stockholders’ equity. It provides a measure of how productively a Company’s equity has been employed. Dividend payout ratio is the percentage of net income paid to

43

common stockholders as cash dividends during a given period. The Company did not pay dividends to common stockholders during the years ended December 31, 2013, 2012 and 2011. It is computed by dividing dividends per share by net income per common share. The Company utilizes leverage within guidelines prescribed by federal banking regulators as described in the “Capital Requirements” section. Leverage is average stockholders’ equity divided by average total assets.

The following table shows the Company’s financial ratios at the dates indicated:

	Year Ended December 31
	2013			2012			2011
Return on average assets		0.53	%		0.50	%		0.13	%
Return on average equity		5.22	%		4.85	%		1.32	%
Dividend payout ratio		n/a			n/a			n/a
Leverage		10.10	%		10.39	%		10.11	%

Non GAAP Measures

Beginning January 1, 2009, business combinations must be accounted for under FASB ASC 805, Business Combinations, using the acquisition method of accounting. The Company has accounted for its previous business combinations under the purchase method of accounting. The original merger between the Company, TFC and BOE as well as the SFSB transaction were business combinations accounted for using the purchase method of accounting. TCB transaction was accounted for as an asset purchase. At December 31, 2013, 2012 and 2011, core deposit intangible assets totaled $6.6 million, $10.3 million and $12.6 million, respectively. Goodwill was zero at December 31, 2013, 2012 and 2011.

In reporting the results of 2013, 2012 and 2011 in Item 6 above, the Company has provided supplemental performance measures on an operating or tangible basis. Such measures exclude amortization expense related to intangible assets, such as core deposit intangibles.. The Company believes these measures are useful to investors as they exclude non-operating adjustments resulting from acquisition activity and allow investors to see the combined economic results of the organization. Non-GAAP operating earnings per share was $0.33 for the year ended December 31, 2013 compared with $0.33 in 2012 and $0.14 in 2011. Non-GAAP return on average tangible common equity and assets for the year ended December 31, 2013 was 8.38% and 0.66%, respectively, compared with 8.31% and 0.65%, respectively, in 2012 and 3.80% and negative 0.28%, respectively, in 2011.

These measures are a supplement to GAAP used to prepare the Company’s financial statements and should not be viewed as a substitute for GAAP measures. In addition, the Company’s non-GAAP measures may not be comparable to non-GAAP measures of other companies. The following table reconciles these non-GAAP measures from their respective GAAP basis measures for the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):

	2013			2012			2011
Net income	$	5,906		$	5,582		$	1,444
Plus: core deposit intangible amortization, net of tax		1,453			1,492			1,492
Plus: goodwill impairment		—			—			—
Non-GAAP operating earnings	$	7,359		$	7,074		$	2,936
Average assets	$	1,120,952		$	1,107,972		$	1,079,470
Less: average goodwill		—			—			—
Less: average core deposit intangibles		9,020			11,475			13,735
Average tangible assets	$	1,111,932		$	1,096,497		$	1,065,735
Average equity	$	113,165		$	115,011		$	109,119
Less: average goodwill		—			—			—
Less: average core deposit intangibles		9,020			11,475			13,735
Less: average preferred equity		16,304			18,348			18,139
Average tangible common equity	$	87,841		$	85,188		$	77,245
Weighted average shares outstanding, diluted		22,211			21,717			21,565
Non-GAAP earnings per share, diluted	$	0.33		$	0.33		$	0.14
Average tangible common equity/average tangible assets		7.90	%		7.77	%		7.25	%
Non-GAAP return on average tangible assets		0.66	%		0.65	%		0.28	%
Non-GAAP return on average tangible common equity		8.38	%		8.31	%		3.80	%

44

ITEM 7A. 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 December 31, 2013, 2012 and 2011 (dollars in thousands):

							Change in net interest income
	2013						2012						2011
	%			$			%			$			%			$
Change in Yield curve
+200 bp		(1.0	)%		(404	)		(1.9	)%		(797	)		(0.7	)%		(243	)
+100 bp		(0.9	)%		(374	)		(1.4	)%		(608	)		(0.2	)%		(63	)
most likely		0	%		—			0	%		—			0	%		—
-100 bp		1.2	%		478			(1.3	)%		(534	)		2.3	%		859
-200 bp		(0.6	)%		(249	)		(2.4	)%		(1,015	)		1.5	%		537

At December 31, 2013, 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 1.0%. 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 0.6%. 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.

45

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Index to Financial Statements

Reports of Independent Registered Public Accounting Firm	47
Consolidated Balance Sheets as of December 31, 2013 and December 31, 2012	49
Consolidated Statements of Income for the years ended December 31, 2013, December  31, 2012 and December 31, 2011	50
Consolidated Statements of Comprehensive (Loss) Income for the years ended December 31, 2013,  December 31, 2012, and December 31, 2011	51
Consolidated Statements of Changes in Stockholders’ Equity for the years ended December  31, 2013, December 31, 2012 and December 31, 2011	52
Consolidated Statements of Cash Flows for the years ended December 31, 2013, December  31, 2012 and December 31, 2011	53
Notes to Consolidated Financial Statements	54

46

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders

Community Bankers Trust Corporation

Glen Allen, Virginia

We have audited the accompanying consolidated balance sheets of Community Bankers Trust Corporation and subsidiary (the “Company”) as of December 31, 2013 and 2012, and the related consolidated statements of income, comprehensive (loss) income, changes in stockholders’ equity and cash flows for each of the years in the three year period ended December 31, 2013. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Community Bankers Trust Corporation and subsidiary as of December 31, 2013 and 2012, and the results of their operations and their cash flows for each of the years in the three year period ended December 31, 2013 in conformity with U.S. generally accepted accounting principles.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company’s internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 1992, and our report dated March 14, 2014 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

/s/ Elliott Davis, LLC

Richmond, Virginia

March 14, 2014

47

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders

Community Bankers Trust Corporation

Glen Allen, Virginia

We have audited the internal control over financial reporting of Community Bankers Trust Corporation and subsidiary (the “Company”) as of December 31, 2013, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 1992 (the “COSO criteria”). The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the effectiveness of the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. A company’s internal control over financial reporting includes those policies and procedures that (a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (c) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2013, based on the COSO criteria.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of the Company as of December 31, 2013 and December 31, 2012 and the related consolidated statements of income, comprehensive (loss) income, changes in stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2013 and our report dated March 14, 2014 expressed an unqualified opinion thereon.

/s/ Elliott Davis, LLC

Richmond, Virginia

March 14, 2014

48

COMMUNITY BANKERS TRUST CORPORATION

CONSOLIDATED BALANCE SHEETS

as of December 31, 2013 and 2012

(dollars in thousands)

	2013			2012
ASSETS
Cash and due from banks	$	10,857		$	12,502
Interest bearing bank deposits		12,978			11,635
Total cash and cash equivalents		23,835			24,137
Securities available for sale, at fair value		265,777			309,078
Securities held to maturity, at cost (fair value of $30,305 and $45,228, respectively)		28,563			42,283
Equity securities, restricted, at cost		8,358			7,405
Total securities		302,698			358,766
Loans held for sale		100			1,266
Loans not covered by FDIC shared-loss agreements		596,173			575,482
Loans covered by FDIC shared-loss agreements		73,275			84,637
Total loans		669,448			660,119
Allowance for loan losses (non-covered loans of $10,444 and $12,920, respectively; covered loans of $484 and $484, respectively)		(10,928	)		(13,404	)
Net loans		658,520			646,715
FDIC indemnification asset		25,409			33,837
Bank premises and equipment, net		27,872			33,638
Other real estate owned, covered by FDIC shared-loss agreements		2,692			3,370
Other real estate owned, non-covered		6,244			10,793
Bank owned life insurance		20,795			15,146
FDIC receivable under shared-loss agreements		368			895
Core deposit intangibles, net		6,621			10,297
Other assets		14,378			14,428
Total assets	$	1,089,532		$	1,153,288
LIABILITIES
Deposits:
Noninterest bearing	$	70,132		$	77,978
Interest bearing		822,209			896,340
Total deposits		892,341			974,318
Federal funds purchased and securities sold under agreements to repurchase		6,000			5,412
Federal Home Loan Bank advances		77,125			49,828
Trust preferred capital notes		4,124			4,124
Other liabilities		3,283			4,289
Total liabilities		982,873			1,037,971
Commitment and Contingencies (Notes 16, 19 and 23)
STOCKHOLDERS’ EQUITY
Preferred stock (5,000,000 shares authorized, $0.01 par value; 10,680 and 17,680 shares issued and outstanding, respectively)		10,680			17,680
Warrants on preferred stock		1,037			1,037
Discount on preferred stock		—			(234	)
Common stock (200,000,000 shares authorized, $0.01 par value; 21,709,096 and 21,670,212 shares issued and outstanding, respectively)		217			217
Additional paid in capital		144,656			144,398
Retained deficit		(45,822	)		(50,609	)
Accumulated other comprehensive (loss) income		(4,109	)		2,828
Total stockholders’ equity		106,659			115,317
Total liabilities and stockholders’ equity	$	1,089,532		$	1,153,288

See accompanying notes to consolidated financial statements

49

COMMUNITY BANKERS TRUST CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

For the Years Ended December 31, 2013, 2012 and 2011

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

	2013			2012		2011
Interest and dividend income
Interest and fees on non-covered loans	$	29,696		$	30,658	$	29,272
Interest and fees on FDIC covered loans		11,936			14,105		17,576
Interest on federal funds sold		3			5		6
Interest on deposits in other banks		58			54		65
Interest and dividends on securities
Taxable		7,693			8,408		8,091
Nontaxable		659			489		1,025
Total interest and dividend income		50,045			53,719		56,035
Interest expense
Interest on deposits		6,370			8,508		10,815
Interest on federal funds purchased		4			9		1
Interest on other borrowed funds		704			1,175		1,412
Total interest expense		7,078			9,692		12,228
Net interest income		42,967			44,027		43,807
Provision for loan losses		—			1,200		1,498
Net interest income after provision for loan losses		42,967			42,827		42,309
Noninterest income
Service charges on deposit accounts		2,739			2,736		2,503
Gain on securities transactions, net		518			1,492		2,868
Loss on sale of other loans, net		(359	)		—		—
Income on bank owned life insurance		747			620		291
Other		1,079			1,358		2,571
Total noninterest income		4,724			6,206		8,233
Noninterest expense
Salaries and employee benefits		15,981			16,511		16,603
Occupancy expenses		2,717			2,715		2,894
Equipment expenses		1,038			1,087		1,237
Legal fees		95			51		444
Professional fees		290			391		583
FDIC assessment		843			1,485		2,788
Data processing fees		2,078			1,824		1,864
FDIC indemnification asset amortization		6,449			6,936		10,364
Amortization of intangibles		2,202			2,261		2,261
Other real estate expense		2,034			2,493		3,788
Other operating expenses		5,561			5,549		6,212
Total noninterest expense		39,288			41,303		49,038
Income before income taxes		8,403			7,730		1,504
Income tax expense		2,497			2,148		60
Net income		5,906			5,582		1,444
Dividends paid on preferred stock		885			884		—
Accretion of discount on preferred stock		234			220		206
Accumulated preferred dividends		—			—		884
Net income available to common stockholders	$	4,787		$	4,478	$	354
Net income per share – basic	$	0.22		$	0.21	$	0.02
Net income per share – diluted	$	0.22		$	0.21	$	0.02
Weighted average number of shares outstanding
basic		21,700			21,647		21,565
diluted		21,922			21,717		21,565

See accompanying notes to consolidated financial statements

50

COMMUNITY BANKERS TRUST CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

For the Years Ended December 31, 2013, 2012 and 2011

(dollars in thousands)

	2013			2012			2011
Net income	$	5,906		$	5,582		$	1,444
Other comprehensive (loss) income:
Unrealized gains on investment securities:
Change in unrealized (loss) gain in investment securities		(11,386	)		2,472			8,023
Tax related to unrealized loss (gain) in investment securities		3,871			(841	)		(2,728	)
Reclassification adjustment for gain in securities sold		(518	)		(1,492	)		(2,868	)
Tax related to realized gain in securities sold		176			507			975
Defined benefit pension plan:
Change in prior service cost		(68	)		—			—
Change unrealized gain (loss) in plan assets		1,462			(57	)		(1,573	)
Tax related to defined benefit pension plan		(474	)		20			535
Total other comprehensive (loss) income		(6,937	)		609			2,364
Total comprehensive (loss) income	$	(1,031	)	$	6,191		$	3,808

See accompanying notes to consolidated financial statements

51

COMMUNITY BANKERS TRUST CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

For the Years Ended December 31, 2013, 2012 and 2011

(dollars and shares in thousands)

	Preferred					Discount on Preferred			Common Stock				Additional Paid in		Retained			Accumulated Other Comprehensive
	Stock			Warrants		Stock			Shares		Amount		Capital		Deficit			Income			Total
Balance December 31, 2010	$	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	$	17,680		$	1,037	$	(454	)		21,628	$	216	$	144,243	$	(53,761	)	$	2,219		$	111,180
Amortization of preferred stock warrants		—			—		220			—		—		—		(220	)		—			—
Issuance of common stock		—			—		—			42		1		98		—			—			99
Dividends paid on preferred stock		—			—		—			—		—		—		(2,210	)		—			(2,210	)
Issuance of stock options		—			—		—			—		—		57		—			—			57
Net income		—			—		—			—		—		—		5,582			—			5,582
Other comprehensive income		—			—		—			—		—		—		—			609			609
Balance December 31, 2012	$	17,680		$	1,037	$	(234	)		21,670	$	217	$	144,398	$	(50,609	)	$	2,828		$	115,317
Amortization of preferred stock warrants		—			—		234			—		—		—		(234	)		—			—
Issuance of common stock		—			—		—			39		—		123		—			—			123
Dividends paid on preferred stock		—			—		—			—		—		—		(885	)		—			(885	)
Issuance of stock options		—			—		—			—		—		135		—			—			135
Redemption of preferred stock		(7,000	)		—		—			—		—		—		—			—			(7,000	)
Net income		—			—		—			—		—		—		5,906			—			5,906
Other comprehensive loss		—			—		—			—		—		—		—			(6,937	)		(6,937	)
Balance December 31, 2013	$	10,680		$	1,037	$	—			21,709	$	217	$	144,656	$	(45,822	)	$	(4,109	)	$	106,659

See accompanying notes to consolidated financial statements

52

COMMUNITY BANKERS TRUST CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2013, 2012 and 2011

(Dollars in thousands)

	2013			2012			2011
Operating activities:
Net income	$	5,906		$	5,582		$	1,444
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and intangibles amortization		3,842			3,963			4,055
Issuance of common stock and stock options		258			156			245
Provision for loan losses		—			1,200			1,498
Deferred tax expense		2,497			2,126			967
Amortization of purchased loans premium		1,265			1,242			578
Amortization of security premiums and accretion of discounts, net		3,488			3,196			2,060
Net gain on sale of securities		(518	)		(1,492	)		(2,868	)
Net loss on sale and valuation of other real estate owned		1,714			1,833			2,869
Net loss on sale of loans		359			—			—
Changes in assets and liabilities:
Net (increase) decrease in loans held for sale		1,595			(686	)		(580	)
Decrease in other assets		9,437			9,037			23,605
(Decrease) increase in accrued expenses and other liabilities		388			(2,469	)		(490	)
Net cash provided by operating activities		30,231			23,688			33,383
Investing activities:
Proceeds from available for sale securities		156,123			174,541			291,779
Proceeds from held to maturity securities		13,471			21,669			18,809
Proceeds from equity securities		1,629			611			363
Purchase of available for sale securities		(127,451	)		(251,111	)		(301,484	)
Purchase of equity securities		(2,582	)		(1,144	)		(65	)
Proceeds from sale of other real estate		7,491			9,630			8,759
Improvements of other real estate, net of insurance proceeds		(621	)		(1,130	)		(211	)
Net increase in loans		(46,847	)		(33,408	)		(27,226	)
Principal recoveries of loans previously charged off		1,015			2,439			588
Purchase of building premises and equipment, net		(1,887	)		(256	)		(591	)
Purchase of bank owned life insurance investment		(5,000	)		—			(7,500	)
Proceeds from sale of loans		28,611			—			—
Proceeds from sale of premises and equipment		5,177			—			—
Net cash provided by (used in) investing activities		29,129			(78,159	)		(16,779	)
Financing activities:
Net increase (decrease) in noninterest bearing and interest bearing demand deposits		111,193			40,827			(28,234	)
Net increase in federal funds purchased and securities sold under agreements to repurchase		588			5,412			—
Net increase in Federal Home Loan Bank borrowings		27,297			12,828			—
Payment from sale of deposits		(190,855	)		—			—
Redemption of preferred stock		(7,000	)		—			—
Cash dividends paid		(885	)		(2,210	)		—
Net cash (used in) provided by financing activities		(59,662	)		56,857			(28,234	)
Net (decrease) increase in cash and cash equivalents		(302	)		2,386			(11,630	)
Cash and cash equivalents:
Beginning of period		24,137			21,751			33,381
End of the period	$	23,835		$	24,137		$	21,751
Supplemental disclosures of cash flow information:
Interest paid	$	7,252		$	10,253		$	12,434
Income taxes paid		—			120			87
Transfers of loans to other real estate owned property		3,351			8,480			12,316
Transfer of loans held for investment to loans held for sale		30,228			—			—
Transfer of building premises and equipment to held for sale		5,174			—			—
Transfer of deposits to held for sale		193,170			—			—

See accompanying notes to consolidated financial statements

53

COMMUNITY BANKERS TRUST CORPORATION

Notes to Consolidated Financial Statements

Note 1. Nature of Banking Activities and Significant Accounting Policies

Organization

Community Bankers Trust Corporation (the “Company”) is a bank holding company that was incorporated in 2005. The Company is headquartered in Glen Allen, Virginia and is the holding company for Essex Bank (the “Bank”), a Virginia state bank with 19 full-service offices in Virginia and Maryland. The Bank also operates two loan production offices in Virginia.

The Bank was established in 1926. 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, and six are located in Maryland along the Baltimore-Washington corridor.

Prior to November 8, 2013, the Bank also had four full-service offices in Georgia. The Bank sold those offices and related deposits to Community & Southern Bank on November 8, 2013. See Note 29 for additional information.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and the Bank, its wholly-owned subsidiary. All material intercompany balances and transactions have been eliminated in consolidation. Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 810, Consolidation, requires that the Company no longer eliminate through consolidation the equity investment in BOE Statutory Trust I, which was $124,000 at December 31, 2013 and 2012. The subordinated debt of the Trust is reflected as a liability of the Company.

Cash and Cash Equivalents

For purposes of the consolidated statements of cash flows, the Company has defined cash and cash equivalents as cash and due from banks, interest-bearing bank balances, and federal funds sold.

Restricted Cash

The Bank is required to maintain a reserve against its deposits in accordance with Regulation D of the Federal Reserve Act. For the final weekly reporting period, the aggregate amount of daily average required reserves was $9.4 million and $9.6 million for each of the years ended December 31, 2013 and 2012, respectively.

Securities

Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Securities not classified as held to maturity, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income.

Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other than temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are determined using the specific identification method.

54

Restricted Securities

The Company is required to maintain an investment in the capital stock of certain correspondent banks. The Company’s investment in these securities is recorded at cost.

Loans Held for Sale

Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated market in the aggregate. Net unrealized losses are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are sold with the mortgage servicing rights released by the Company.

The Company enters into commitments to originate certain mortgage loans whereby the interest rate on the loans is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. The period of time between issuance of a loan commitment and closing and the sale of the loan generally ranges from thirty to ninety days. The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Company is not exposed to losses nor will it realize significant gains related to its rate lock commitments due to changes in interest rates. The correlation between the rate lock commitments and the best efforts contracts is very high due to their similarity. Because of this high correlation, the gain or loss that occurs on the rate lock commitments is immaterial.

Loans

The Bank grants mortgage, commercial and consumer loans to customers. A significant portion of the loan portfolio is represented by 1-4 family residential and commercial mortgage loans. The ability of the Bank’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in the Bank’s market area.

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method.

The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Consumer loans are typically charged off no later than 180 days past due. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

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 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.

55

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, it is probable that the Company 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, 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 Bank does not separately identify individual consumer and residential loans for impairment disclosures.

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 Suburban Federal Savings Bank (SFSB) acquisition (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, Loans and Debt Securities Acquired with Deteriorated Credit Quality (formerly SOP 03-3), 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 acquisition. The Company has grouped loans together based on common risk characteristics including product type, delinquency status and loan documentation requirements among others.

The covered loans acquired are subject to credit review standards described above for non-covered loans. If and when credit deterioration occurs subsequent to the acquisition date, a provision for credit loss for covered loans will be charged to earnings for the full amount without regard to the shared-loss agreements.

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 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 allowance for loan loss. 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.

56

Bank Premises and Equipment

Bank premises and equipment are stated at cost less accumulated depreciation. Land is carried at cost. Depreciation of bank premises and equipment is computed on the straight-line method over estimated useful lives of 10 to 50 years for premises and 3 to 20 years for equipment, furniture and fixtures.

Costs of maintenance and repairs are charged to expense as incurred and major improvements are capitalized. Upon sale or retirement of depreciable properties, the cost and related accumulated depreciation are eliminated from the accounts and the resulting gain or loss is included in the determination of income.

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 selling 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. The Company had $6.2 million and $10.8 million in other real estate, non-covered at December 31, 2013 and 2012, respectively, and $2.7 million and $3.4 million in other real estate, covered at December 31, 2013 and 2012 respectively.

Other Intangibles

FASB ASC 805, Business Combinations, requires that the purchase method of accounting be used for all business combinations after June 30, 2001. With purchase acquisitions, the Company is required to record assets acquired, including any intangible assets, and liabilities assumed at fair value, which involves relying on estimates based on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analysis or other valuation methods. The Company records intangibles under FASB ASC 350, which states that 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 Company followed FASB ASC 350 and determined that any core deposit intangibles will be amortized over the estimated useful life. Core deposit intangibles are evaluated for impairment in accordance with FASB ASC 350.

Advertising Costs

The Company follows the policy of expensing advertising costs as incurred, which totaled $384,000, $336,000, and $329,000 for 2013, 2012, and 2011, respectively.

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 income. 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 that 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.

57

The Company and its subsidiaries are subject to U. S. federal income tax as well as various state income taxes. Years 2010 through 2013 are open to examination by the respective tax authorities.

Earnings Per Share

Basic earnings per share (EPS) is computed based on the weighted average number of shares outstanding and excludes any dilutive effects of options, warrants and convertible securities. Diluted EPS is computed in a manner similar to basic EPS, except for certain adjustments to the numerator and the denominator. Diluted EPS gives effect to all dilutive potential common shares that were outstanding at the end of the period. Potential common shares that may be issued by the Company relate solely to outstanding stock options and warrants and are determined using the treasury stock method. The Company declared and paid $885,000, $2.2 million, and $0 in dividends on preferred stock in 2013, 2012, and 2011, respectively.

Stock-Based Compensation

In April 2009, the Company adopted the Community Bankers Trust Corporation 2009 Stock Incentive Plan which is authorized to issue up to 2,650,000 shares of common stock. See Note 14 for details regarding these plans.

Recent Accounting Pronouncements

In January 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-04, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40) — Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. Although current guidance indicates that a creditor should reclassify a collateralized mortgage loan as other real estate owned when it determines that there has been in substance a repossession or foreclosure by the creditor, that is, the creditor receives physical possession of the debtor’s assets regardless of whether formal foreclosure proceedings take place, the terms in substance a repossession or foreclosure and physical possession are not defined in the accounting literature. This has resulted in diversity about when a creditor should derecognize the loan receivable and recognize the real estate property. The objective of the amendments in this Update is to reduce diversity by clarifying when an in substance repossession or foreclosure occurs. The amendments state that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments are effective for public business entities for annual periods and interim periods within those annual periods beginning after December 15, 2014. Early adoption is permitted. The Company currently records foreclosures in accordance with this guidance; therefore, no changes are necessary for adoption.

Also in January 2014, the FASB issued ASU No. 2014-01, Investments — Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force). The amendments in this ASU apply to all reporting entities that invest in qualified affordable housing projects through limited liability entities that are flow through entities for tax purposes. Currently, an investor that invests in a qualified affordable housing project may elect to account for that investment using the effective yield method. Those not electing the effective yield method would account for the investment using the equity method or cost method. The Task Force received stakeholder feedback indicating that certain of the required conditions for the effective yield method are overly restrictive and thus prevent many investments in qualified affordable housing projects from qualifying for the use of this method. Those stakeholders stated that presenting the investment performance net of taxes as a component of income tax expense (benefit) as prescribed by the effective yield method more fairly represents the economics and provides users with a better understanding of the returns from such investments than the equity or cost methods.

The amendments in this ASU eliminate the effective yield election and permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). Those not electing the proportional amortization method would account for the investment using the equity method or cost method. The decision to apply the proportional amortization method of accounting is an accounting policy decision that should be applied consistently to all qualifying affordable housing project investments rather than a decision to be applied to individual investments. A reporting entity

58

should disclose information that enables users of its financial statements to understand the nature of its investments in qualified affordable housing projects, and the effect of the measurement of its investments in qualified affordable housing projects and the related tax credits on its financial position and results of operations. The amendments in this ASU should be applied retrospectively to all periods presented. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). U.S. GAAP does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets.

The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. Retrospective application is permitted. The Company currently presents these tax items in accordance with this guidance; therefore, no changes are necessary for adoption.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of other real estate owned, projected cash flows relating to certain acquired loans, the value of the indemnification asset, and the valuation of deferred tax assets.

Reclassifications

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

59

Note 2. Securities

The amortized cost and fair value of securities available for sale and held to maturity as of December 31, 2013 and 2012 were as follows (dollars in thousands):

	December 31, 2013
	Gross Unrealized
	Amortized Cost		Gains		Losses			Fair Value
Securities Available for Sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	99,789	$	165	$	(967	)	$	98,987
U.S. Gov’t sponsored agencies		487		—		(1	)		486
State, county and municipal		138,884		1,297		(6,085	)		134,096
Corporate and other bonds		6,369		27		(47	)		6,349
Mortgage backed – U.S. Gov’t agencies		3,608		29		(198	)		3,439
Mortgage backed – U.S. Gov’t sponsored agencies		22,631		69		(280	)		22,420
Total Securities Available for Sale	$	271,768	$	1,587	$	(7,578	)	$	265,777
Securities Held to Maturity
State, county and municipal	$	9,385	$	718	$	—		$	10,103
Mortgage backed – U.S. Gov’t agencies		6,604		398		—			7,002
Mortgage backed – U.S. Gov’t sponsored agencies		12,574		626		—			13,200
Total Securities Held to Maturity	$	28,563	$	1,742	$	—		$	30,305

	December 31, 2012
	Gross Unrealized
	Amortized Cost		Gains		Losses			Fair Value
Securities Available for Sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	153,480	$	362	$	(565	)	$	153,277
U.S. Gov’t sponsored agencies		500		3		—			503
State, county and municipal		112,110		5,757		(271	)		117,596
Corporate and other bonds		7,530		96		(8	)		7,618
Mortgage backed – U.S. Gov’t agencies		15,192		378		(10	)		15,560
Mortgage backed – U.S. Gov’t sponsored agencies		14,349		258		(83	)		14,524
Total Securities Available for Sale	$	303,161	$	6,854	$	(937	)	$	309,078
Securities Held to Maturity
State, county and municipal	$	11,825	$	1,142	$	—		$	12,967
Mortgage backed – U.S. Gov’t agencies		9,112		615		—			9,727
Mortgage backed – U.S. Gov’t sponsored agencies		21,346		1,188		—			22,534
Total Securities Held to Maturity	$	42,283	$	2,945	$	—		$	45,228

The amortized cost and fair value of securities at December 31, 2013 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 (dollars in thousands).

	Held to Maturity				Available for Sale
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	2,447	$	2,497	$	6,367	$	6,305
Due after one year through five years		24,677		26,198		42,963		42,709
Due after five years through ten years		1,439		1,610		141,675		138,206
Due after ten years		—		—		80,763		78,557
Total securities	$	28,563	$	30,305	$	271,768	$	265,777

60

Proceeds from sales of securities available for sale were $77.8 million, $149.9 million and $216.8 million during the years ended December 31, 2013, 2012 and 2011, respectively. Gains and losses on the sale of securities are determined using the specific identification method. Gross realized gains and losses on sales of securities available for sale during the years ended December 31, 2013, 2012 and 2011 were as follows (dollars in thousands):

	2013			2012			2011
Gross realized gains	$	645		$	2,236		$	2,953
Gross realized losses		(127	)		(744	)		(85	)
Net securities gains	$	518		$	1,492		$	2,868

In estimating other than temporary impairment (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 OTTI losses for the years ended December 31, 2013, 2012 and 2011.

The fair value and gross unrealized losses for securities available for sale, segregated by the length of time that individual securities have been in a continuous gross unrealized loss position, at December 31, 2013 and 2012 were as follows (dollars in thousands):

	December 31, 2013
	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	$	35,873	$	(531	)	$	37,638	$	(436	)	$	73,511	$	(967	)
U.S. Gov’t sponsored agencies		486		(1	)		—		—			486		(1	)
State, county and municipal		92,010		(5,343	)		6,445		(742	)		98,455		(6,085	)
Corporate and other bonds		3,332		(42	)		991		(5	)		4,323		(47	)
Mortgage backed – U.S. Gov’t agencies		2,767		(198	)		—		—			2,767		(198	)
Mortgage backed – U.S. Gov’t sponsored agencies		14,572		(258	)		1,557		(22	)		16,129		(280	)
Total	$	149,040	$	(6,373	)	$	46,631	$	(1,205	)	$	195,671	$	(7,578	)

	December 31, 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	$	70,561	$	(565	)	$	—	$	—	$	70,561	$	(565	)
U.S. Gov’t sponsored agencies		—		—			—		—		—		—
State, county and municipal		17,404		(271	)		—		—		17,404		(271	)
Corporate and other bonds		1,485		(8	)		—		—		1,485		(8	)
Mortgage backed – U.S. Gov’t agencies		1,688		(10	)		—		—		1,688		(10	)
Mortgage backed – U.S. Gov’t sponsored agencies		4,779		(83	)		—		—		4,779		(83	)
Total	$	95,917	$	(937	)	$	—	$	—	$	95,917	$	(937	)

The unrealized losses (impairments) in the investment portfolio as of December 31, 2013 and 2012 are generally a result of market fluctuations that occur daily. At December 31, 2013, the unrealized losses are from 256 securities. Of those, 251 are investment grade and are backed by insurance, 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 five securities with unrealized losses at December 31, 2013. 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 financial statements.

Securities with amortized costs of $109.1 million and $111.7 million as of December 31, 2013 and 2012, respectively, were pledged to secure public deposits and for other purposes required or permitted by law. At each of December 31, 2013

61

and 2012, 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.

Note 3. Loans Not Covered by FDIC Shared-loss Agreements (Non-covered Loans) and Related Allowance for Loan Losses

The Company’s non-covered loans at December 31, 2013 and 2012 were comprised of the following (dollars in thousands):

	December 31, 2013						December 31, 2012
	Amount			% of Non-Covered Loans			Amount			% of Non-Covered Loans
Mortgage loans on real estate:
Residential 1-4 family	$	141,974			23.81	%	$	135,420			23.53	%
Commercial		239,389			40.14			246,521			42.83
Construction and land development		54,745			9.18			61,127			10.62
Second mortgages		6,369			1.07			7,230			1.26
Multifamily		35,774			6.00			28,683			4.98
Agriculture		9,267			1.55			10,359			1.79
Total real estate loans		487,518			81.75			489,340			85.01
Commercial loans		101,761			17.07			77,835			13.52
Consumer installment loans		5,623			0.94			6,929			1.20
All other loans		1,435			0.24			1,526			0.27
Gross loans		596,337			100.00	%		575,630			100.00	%
Less unearned income on loans		(164	)					(148	)
Non-covered loans, net of unearned income	$	596,173					$	575,482

The Company held $38.5 million and $40.9 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 December 31, 2013 and 2012, 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 $2.5 million and $3.4 million at December 31, 2013 and 2012, respectively. Unamortized purchase premium is recognized as an adjustment of the related loan yield on a straight line basis.

At December 31, 2013 and 2012, the Company’s allowance for credit losses is comprised of the following: (i) any 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 FASB ASC 310.

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 years ended December 31, 2013, 2012, and 2011. For the years ended December 31, 2013, 2012 and 2011, estimated interest income of $980,000, $1.3 million and $1.8 million, respectively, would have been recorded if all such loans had been accruing interest according to their original contractual terms.

62

The following table summarizes information related to impaired loans as of December 31, 2013 (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	$	3,485	$	3,739	$	881
Commercial		920		1,091		150
Construction and land development		4,148		5,298		508
Second mortgages		225		226		40
Multifamily		—		—		—
Agriculture		—		—		—
Total real estate loans		8,778		10,354		1,579
Commercial loans		127		794		16
Consumer installment loans		49		51		9
All other loans		—		—		—
Subtotal impaired loans with valuation allowance	$	8,954	$	11,199	$	1,604
With no related allowance recorded:
Mortgage loans on real estate:
Residential 1-4 family	$	1,189	$	1,228	$	—
Commercial		1,714		1,969		—
Construction and land development		1,734		4,335		—
Second mortgages		—		—		—
Multifamily		—		—		—
Agriculture		204		222		—
Total real estate loans		4,841		7,754		—
Commercial loans		—		—		—
Consumer installment loans		6		6		—
All other loans		—		—		—
Subtotal impaired loans without valuation allowance	$	4,847	$	7,760	$	—
Total:
Mortgage loans on real estate:
Residential 1-4 family	$	4,674	$	4,967	$	881
Commercial		2,634		3,060		150
Construction and land development		5,882		9,633		508
Second mortgages		225		226		40
Multifamily		—		—		—
Agriculture		204		222		—
Total real estate loans		13,619		18,108		1,579
Commercial loans		127		794		16
Consumer installment loans		55		57		9
All other loans		—		—		—
Total impaired loans	$	13,801	$	18,959	$	1,604

(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.

63

The following table summarizes information related to impaired loans as of December 31, 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	$	3,838	$	4,021	$	897
Commercial		2,741		2,827		725
Construction and land development		7,412		10,355		850
Second mortgages		124		170		22
Multifamily		—		—		—
Agriculture		250		580		20
Total real estate loans		14,365		17,953		2,514
Commercial loans		509		582		121
Consumer installment loans		78		79		21
All other loans		—		—		—
Subtotal impaired loans with valuation allowance	$	14,952	$	18,614	$	2,656
With no related allowance recorded:
Mortgage loans on real estate:
Residential 1-4 family	$	2,702	$	3,094	$	—
Commercial		3,076		3,281		—
Construction and land development		1,578		1,961		—
Second mortgages		48		48		—
Multifamily		—		—		—
Agriculture		—		—		—
Total real estate loans		7,404		8,384		—
Commercial loans		—		183		—
Consumer installment loans		9		9		—
All other loans		—		—		—
Subtotal impaired loans without valuation allowance	$	7,413	$	8,576	$	—
Total:
Mortgage loans on real estate:
Residential 1-4 family	$	6,540	$	7,115	$	897
Commercial		5,817		6,108		725
Construction and land development		8,990		12,316		850
Second mortgages		172		218		22
Multifamily		—		—		—
Agriculture		250		580		20
Total real estate loans		21,769		26,337		2,514
Commercial loans		509		765		121
Consumer installment loans		87		88		21
All other loans		—		—		—
Total impaired loans	$	22,365	$	27,190	$	2,656

(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.

64

The following table summarizes the average recorded investment of impaired loans for the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):

	Average Recorded Investment
	2013		2012		2011
Mortgage loans on real estate:
Residential 1-4 family	$	5,607	$	6,770	$	8,731
Commercial		4,225		10,505		12,212
Construction and land development		7,436		10,602		21,345
Second mortgages		198		184		263
Multifamily		—		—		—
Agriculture		227		93		100
Total real estate loans		17,693		28,154		42,651
Commercial loans		318		773		1,704
Consumer installment loans		72		137		101
All other loans		—		—		—
Total impaired loans	$	18,083	$	29,064	$	44,456

The majority of impaired loans are also nonaccruing for which no interest income was recognized during each of the years ended December, 2013, 2012 and 2011. No significant amounts of interest income were recognized on accruing impaired loans for the years ended December, 2013, 2012 and 2011.

The following table presents non-covered nonaccrual loans by category (dollars in thousands):

	December 31
	2013		2012
Mortgage loans on real estate:
Residential 1-4 family	$	4,229	$	5,562
Commercial		1,382		5,818
Construction and land development		5,882		8,815
Second mortgages		225		141
Multifamily		—		—
Agriculture		205		250
Total real estate loans		11,923		20,586
Commercial loans		127		385
Consumer installment loans		55		77
All other loans		—		—
Total loans	$	12,105	$	21,048

Troubled debt restructurings, special mention loans, and some substandard 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 December 31, 2013 and 2012 is set forth in the table below (dollars in thousands):

	December 31
	2013		2012
Nonaccruals	$	12,105	$	21,048
Trouble debt restructure and still accruing		1,696		847
Special mention		—		299
Substandard and still accruing		—		171
Total impaired	$	13,801	$	22,365

65

The following tables present an age analysis of past due status of non-covered loans by category for the years ended December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013
	30-89 Days Past Due		90 Days Past Due		Total Past Due		Current		Total Loans Receivable		Recorded Investment 90 Days and Accruing
Mortgage loans on real estate:
Residential 1-4 family	$	1,455	$	4,229	$	5,684	$	136,290	$	141,974	$	—
Commercial		—		1,382		1,382		238,007		239,389		—
Construction and land development		242		5,882		6,124		48,621		54,745		—
Second mortgages		—		225		225		6,144		6,369		—
Multifamily		—		—		—		35,774		35,774		—
Agriculture		—		205		205		9,062		9,267		—
Total real estate loans		1,697		11,923		13,620		473,898		487,518		—
Commercial loans		115		127		242		101,519		101,761		—
Consumer installment loans		58		55		113		5,510		5,623		—
All other loans		—		—		—		1,435		1,435		—
Total loans	$	1,870	$	12,105	$	13,975	$	582,362	$	596,337	$	—

	December 31, 2012
	30-89 Days Past Due		90 Days Past Due		Total Past Due		Current		Total Loans Receivable		Recorded Investment 90 Days and Accruing
Mortgage loans on real estate:
Residential 1-4 family	$	1,433	$	5,797	$	7,230	$	128,190	$	135,420	$	235
Commercial		—		5,818		5,818		240,703		246,521		—
Construction and land development		298		9,089		9,387		51,740		61,127		274
Second mortgages		—		141		141		7,089		7,230		—
Multifamily		—		—		—		28,683		28,683		—
Agriculture		—		250		250		10,109		10,359		—
Total real estate loans		1,731		21,095		22,826		466,514		489,340		509
Commercial loans		85		385		470		77,365		77,835		—
Consumer installment loans		40		77		117		6,812		6,929		—
All other loans		—		—		—		1,526		1,526		—
Total loans	$	1,856	$	21,557	$	23,413	$	552,217	$	575,630	$	509

66

Activity in the allowance for loan losses on non-covered loans for the years ended December 31, 2013, 2012 and 2011 is presented in the following tables (dollars in thousands):

	December 31, 2012		Provision Allocation			Charge offs			Recoveries		December 31, 2013
Mortgage loans on real estate:
Residential 1-4 family	$	3,985	$	332		$	(432	)	$	56	$	3,941
Commercial		2,482		1,269			(1,580	)		20		2,191
Construction and land development		3,773		(1,378	)		(877	)		694		2,212
Second mortgages		142		9			(105	)		48		94
Multifamily		303		(170	)		—			—		133
Agriculture		61		(20	)		(5	)		39		75
Total real estate loans		10,746		42			(2,999	)		857		8,646
Commercial loans		1,961		(44	)		(325	)		82		1,674
Consumer installment loans		195		(6	)		(167	)		76		98
All other loans		18		8			—			—		26
Total loans	$	12,920	$	—		$	(3,491	)	$	1,015	$	10,444

	December 31, 2011		Provision Allocation			Charge offs			Recoveries		December 31, 2012
Mortgage loans on real estate:
Residential 1-4 family	$	3,451	$	2,283		$	(1,786	)	$	37	$	3,985
Commercial		3,048		15			(654	)		73		2,482
Construction and land development		5,729		(1,539	)		(2,058	)		1,641		3,773
Second mortgages		296		(165	)		(45	)		56		142
Multifamily		224		79			—			—		303
Agriculture		25		75			(39	)		—		61
Total real estate loans		12,773		748			(4,582	)		1,807		10,746
Commercial loans		1,810		604			(695	)		242		1,961
Consumer installment loans		241		91			(220	)		83		195
All other loans		11		7			—			—		18
Total loans	$	14,835	$	1,450		$	(5,497	)	$	2,132	$	12,920

	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

67

Included in charge-offs for the year ended December 31, 2013 was a $500,000 writedown arising from the transfer of a loan from non-covered loans to loans held for sale.

The following tables present information on the non-covered loans evaluated for impairment in the allowance for loan losses as of December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013
	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	$	923	$	3,018	$	3,941	$	6,708	$	135,266	$	141,974
Commercial		200		1,991		2,191		8,016		231,373		239,389
Construction and land development		651		1,561		2,212		8,619		46,126		54,745
Second mortgages		42		52		94		254		6,115		6,369
Multifamily		—		133		133		—		35,774		35,774
Agriculture		—		75		75		205		9,062		9,267
Total real estate loans		1,816		6,830		8,646		23,802		463,716		487,518
Commercial loans		18		1,656		1,674		192		101,569		101,761
Consumer installment loans		9		89		98		57		5,566		5,623
All other loans		—		26		26		—		1,435		1,435
Total loans	$	1,843	$	8,601	$	10,444	$	24,051	$	572,286	$	596,337

	December 31, 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	$	1,003	$	2,982	$	3,985	$	10,340	$	125,080	$	135,420
Commercial		864		1,618		2,482		15,636		230,885		246,521
Construction and land development		1,306		2,467		3,773		14,173		46,954		61,127
Second mortgages		29		113		142		234		6,996		7,230
Multifamily		—		303		303		—		28,683		28,683
Agriculture		21		40		61		250		10,109		10,359
Total real estate loans		3,223		7,523		10,746		40,633		448,707		489,340
Commercial loans		125		1,836		1,961		605		77,230		77,835
Consumer installment loans		22		173		195		92		6,837		6,929
All other loans		—		18		18		—		1,526		1,526
Total loans	$	3,370	$	9,550	$	12,920	$	41,330	$	534,300	$	575,630

⁽¹⁾  The category “Individually Evaluated for Impairment” includes loans individually evaluated for impairment and determined not to be impaired. These loans totaled $10.0 million and $19.0 million at December 31, 2013 and 2012, respectively. The allowance for loans losses allocated to these loans was $239,000 and $714,000 at December 31, 2013 and 2012, 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 $38.5 million and $40.9 million at December 31, 2013 and 2012, respectively.

68

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 December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013
	Pass		Special Mention		Substandard		Doubtful		Total
Mortgage loans on real estate:
Residential 1-4 family	$	127,074	$	8,193	$	6,707	$	—	$	141,974
Commercial		221,486		11,135		6,768		—		239,389
Construction and land development		43,949		2,178		8,618		—		54,745
Second mortgages		5,687		428		254		—		6,369
Multifamily		35,774		—		—		—		35,774
Agriculture		9,063		—		204		—		9,267
Total real estate loans		443,033		21,934		22,551		—		487,518
Commercial loans		98,614		2,955		192		—		101,761
Consumer installment loans		5,344		222		57		—		5,623
All other loans		1,435		—		—		—		1,435
Total loans	$	548,426	$	25,111	$	22,800	$	—	$	596,337

	December 31, 2012
	Pass		Special Mention		Substandard		Doubtful		Total
Mortgage loans on real estate:
Residential 1-4 family	$	118,931	$	6,496	$	9,993	$	—	$	135,420
Commercial		209,347		21,540		15,478		156		246,521
Construction and land development		36,261		10,954		13,912		—		61,127
Second mortgages		6,519		477		234		—		7,230
Multifamily		27,514		1,169		—		—		28,683
Agriculture		10,109		—		250		—		10,359
Total real estate loans		408,681		40,636		39,867		156		489,340
Commercial loans		76,148		1,205		482		—		77,835
Consumer installment loans		6,617		220		92		—		6,929
All other loans		1,526		—		—		—		1,526
Total loans	$	492,972	$	42,061	$	40,441	$	156	$	575,630

In accordance with FASB ASU 2011-02, Receivables (Topic 310): A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring, the Company assesses all loan modifications to determine whether they are considered troubled debt restructurings (TDRs) under the guidance. During the year ended December 31, 2013, the Bank modified two residential 1-4 family loans that were considered to be TDRs. The Company extended the terms and lowered the interest rate for both of these loans, which had an aggregate pre- and post-modification balance of $501,000.

69

During the year ended December 31, 2012, the Bank modified six loans that were considered to be TDRs. The Company extended the terms for four of these loans and the interest rate was lowered for five of these loans. These restructures included payments of $202,000 for one of these loans. The following table presents information relating to loans modified as TDRs during the year ended December 31, 2012 (dollars in thousands):

	Year ended December 31, 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
Total loans		6	$	5,590	$	5,388

A loan is considered to be in default if it is 90 days or more past due. There was one TDR that had been restructured during the previous 12 months that resulted in default during the year ended December 31, 2013. This residential 1-4 family loan had a recorded investment of $173,000.

During the year ended December 31, 2012, one loan that had been restructured during the previous 12 months was in default. This construction real estate loan had a recorded investment of $519,000 at December 31, 2012.

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

At December 31, 2013, the Company had 1-4 family mortgages in the amount of $139.3 million pledged as collateral to the Federal Home Loan Bank (FHLB) for a total borrowing capacity of $88.1 million.

Note 4. Loans Covered by FDIC Shared-loss Agreements (Covered Loans) and Related Allowance for Loan Losses

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 FASB 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 FASB 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 that time.

70

As of December 31, 2013 and 2012, the outstanding contractual balance of the covered loans was $117.0 million and $137.2 million, respectively. The carrying amount, by loan type, as of these dates is as follows (dollars in thousands):

	December 31, 2013					December 31, 2012
	Amount		% of Covered Loans			Amount		% of Covered Loans
Mortgage loans on real estate:
Residential 1-4 family	$	64,610		88.18	%	$	74,046		87.47	%
Commercial		1,389		1.90			1,986		2.35
Construction and land development		2,940		4.01			3,264		3.86
Second mortgages		3,898		5.32			4,864		5.75
Multifamily		266		0.36			304		0.36
Agriculture		172		0.23			172		0.20
Total real estate loans		73,275		100.00	%		84,636		99.99	%
Commercial loans		—		—			—		—
Consumer installment loans		—		—			1		0.01
All other loans		—		—			—		—
Total covered loans	$	73,275		100.00	%	$	84,637		100.00	%

There was no activity in the allowance for loan losses on covered loans for the year ended December 31, 2013. Activity in the allowance for loan losses on covered loans for the years ended December 31, 2012 and 2011, was comprised of the following (dollars in thousands):

	December 31, 2011		Provision Allocation			Charge offs			Recoveries		December 31, 2012
Mortgage loans on real estate:
Residential 1-4 family	$	473	$	(218	)	$	(12	)	$	9	$	252
Commercial		303		(71	)		—			—		232
Construction and land development		—		4			(22	)		18		—
Multifamily		—		35			(315	)		280		—
Total real estate loans		776		(250	)		(349	)		307		484
Total covered loans	$	776	$	(250	)	$	(349	)	$	307	$	484

	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
Total real estate loans		829		—		(53	)		—		776
Total covered loans	$	829	$	—	$	(53	)	$	—	$	776

71

The following table presents information on the covered loans collectively evaluated for impairment in the allowance for loan losses at December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013				December 31, 2012
	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	$	252	$	64,610	$	252	$	74,046
Commercial		232		1,389		232		1,986
Construction and land development		—		2,940		—		3,264
Second mortgages		—		3,898		—		4,864
Multifamily		—		266		—		304
Agriculture		—		172		—		172
Total real estate loans		484		73,275		484		84,636
Commercial loans		—		—		—		—
Consumer installment loans		—		—		—		1
All other loans		—		—		—		—
Total covered loans	$	484	$	73,275	$	484	$	84,637

The change in the accretable yield balance since January 1, 2011 is as follows:

Balance at January 1, 2011	$	75,718
Accretion		(17,525	)
Reclassification from (to) nonaccretable yield		(1,883	)
Balance at December 31, 2011		56,310
Accretion		(14,105	)
Reclassification from (to) nonaccretable yield		11,939
Balance at December 31, 2012		54,144
Accretion		(11,936	)
Reclassification from (to) nonaccretable yield		9,307
Balance at December 31, 2013	$	51,515

The covered loans were not classified as nonperforming assets at December 31, 2013 and 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.

Note 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 assets are to be made quarterly through March 2019, and the reimbursements for losses on other covered assets are to be made quarterly through March 2014. 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

72

other real estate owned assets (OREO) because it is not contractually embedded in the covered loan and OREO, 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, 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.

As discussed above, the shared-loss agreement for assets other than single family one-to-four mortgages expires March 2014. The portion of the FDIC indemnification asset related to those assets was $213,000 at December 31, 2013, of which $79,000 represented estimated losses to be reimbursed by the FDIC.

The following table presents the balances of the FDIC indemnification asset at December 31, 2013, 2012 and 2011 (dollars in thousands):

				Estimated			Amortizable			FDIC
	Anticipated			Loss			Premium			Indemnification
	Expected			Sharing			(Discount)			Asset
	Losses			Value			at PV			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		622			497						497
Decreases:
Net amortization of premium								(6,936	)		(6,936	)
Reclassifications to FDIC receivable:
Net loan charge-offs and recoveries		(1,321	)		(1,057	)					(1,057	)
OREO sales		(1,140	)		(912	)					(912	)
Reimbursements requested from FDIC		(495	)		(396	)					(396	)
Reforecasted change in anticipated expected losses		(3,174	)		(2,539	)		2,539			—
December 31, 2012		23,205			18,564			15,273			33,837
Increases:
Writedown of OREO property to FMV		344			275						275
Decreases:
Net amortization of premium								(6,449	)		(6,449	)
Reclassifications to FDIC receivable:
Net loan charge-offs and recoveries		(1,268	)		(1,014	)					(1,014	)
OREO sales		(1,180	)		(944	)					(944	)
Reimbursements requested from FDIC		(370	)		(296	)					(296	)
Reforecasted change in anticipated expected losses		(7,217	)		(5,774	)		5,774			—
December 31, 2013	$	13,514		$	10,811		$	14,598		$	25,409

73

Note 6. Premises and Equipment

A summary of the bank premises and equipment is as follows (dollars in thousands):

	December 31
	2013			2012
Land	$	7,681		$	11,808
Land improvements and buildings		21,087			23,519
Leasehold improvements		58			54
Furniture and equipment		5,574			5,912
Construction in progress		1,385			29
Total		35,785			41,322
Less accumulated depreciation and amortization		(7,913	)		(7,684	)
Bank premises and equipment, net	$	27,872		$	33,638

Depreciation expense for the year ended December 31, 2013, 2012 and 2011 amounted to $1.6 million, $1.7 million, and $1.8 million, respectively.

Note 7. Other Intangibles

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, which are being amortized over 9 years. Core deposit intangibles resulting from the Georgia and Maryland transactions, in 2008 and 2009, respectively, equaled $3.2 million and $2.1 million, respectively, and are being amortized over 9 years. The core deposit intangible related to the Georgia transaction was written off in conjunction with the sale of the branches in that market (See Note 29). The Company estimates that it will recognize amortization expense of $1.9 million for each of the next three years and the final $898,000 in the year ended December 31, 2017.

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

	December 31, 2013			December 31, 2012
Core deposit intangibles	$	20,290		$	20,290
Accumulated amortization		(12,196	)		(9,994	)
Reduction due to sale of deposits		(1,473	)		—
Balance	$	6,621		$	10,296

Note 8. Deposits

The following table presents interest-bearing deposits by type at December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013		December 31, 2012
NOW	$	102,111	$	142,923
MMDA		94,170		113,171
Savings		75,159		77,506
Time deposits less than $100,000		235,482		287,422
Time deposits $100,000 and over		315,287		275,318
Total interest-bearing deposits	$	822,209	$	896,340

74

The scheduled maturities of time deposits at December 31, 2013 are as follows (dollars in thousands):

2014	$	316,584
2015		135,836
2016		64,255
2017		17,864
2018		15,388
2019		842
Total	$	550,769

Note 9. Accumulated Other Comprehensive (Loss) Income

The following tables present activity net of tax in accumulated other comprehensive (loss) income (AOCI) for the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):

	Year ended December 31, 2013
	Unrealized Gain/Loss on Securities			Defined Benefit Pension Plan			Total Other Comprehensive (Loss) Income
Beginning balance	$	3,903		$	(1,075	)	$	2,828
Other comprehensive (loss) income before reclassifications		(7,515	)		1,394			(6,121	)
Amounts reclassified from AOCI		(342	)		(474	)		(816	)
Net current period other comprehensive loss		(7,857	)		920			(6,937	)
Ending balance	$	(3,954	)	$	(155	)	$	(4,109	)

	Year ended December 31, 2012
	Unrealized Gain/Loss on Securities			Defined Benefit Pension Plan			Total Other Comprehensive (Loss) Income
Beginning balance	$	3,257		$	(1,038	)	$	2,219
Other comprehensive (loss) income before reclassifications		1,631			(57	)		1,574
Amounts reclassified from AOCI		(985	)		20			(965	)
Net current period other comprehensive loss		646			(37	)		609
Ending balance	$	3,903		$	(1,075	)	$	2,828

	Year ended December 31, 2011
	Unrealized Gain/Loss on Securities			Defined Benefit Pension Plan			Total Other Comprehensive (Loss) Income
Beginning balance	$	(145	)	$	—		$	(145	)
Other comprehensive (loss) income before reclassifications		5,295			(1,573	)		3,722
Amounts reclassified from AOCI		(1,893	)		535			(1,358	)
Net current period other comprehensive loss		3,402			(1,038	)		2,364
Ending balance	$	3,257		$	(1,038	)	$	2,219

75

The following tables present the effects of reclassifications out of AOCI on line items of consolidated income for the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):

Details about AOCI Components	Amount Reclassified from AOCI									Affected Line Item in the Unaudited Consolidated Statement of Income
	Year ended
	December 31, 2013			December 31, 2012			December 31, 2011
Unrealized (gain) loss on securities available for sale	$	(518	)	$	(1,492	)	$	(2,868	)	Gain on securities transactions, net
		176			507			975		Income tax expense
	$	(342	)	$	(985	)	$	(1,893	)	Net of tax
Amortization of defined benefit pension items
Actuarial gain (loss)	$	1,462		$	(57	)	$	(1.573	)	(1)
Prior service cost		(68	)		—			—		(1)
		(474	)		20			535		Income tax expense
	$	920		$	(37	)	$	(1.038	)	Net of tax

(1) This other comprehensive income component is included in the computation of net periodic pension cost (See Note 12, “Employee Benefit Plans” for details).

Note 10. Income Taxes

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31 are as follows (dollars in thousands):

	2013		2012
Deferred tax assets:
Allowance for loan losses	$	3,715	$	4,557
Deferred compensation		633		514
Nonaccrual loan interest		931		847
Unrealized loss on available for sale securities		2,037		—
FAS 158 adjustment pension		81		554
Stock based compensation		205		165
Net operating loss carryforward		—		2,667
Alternative minimum tax credit		—		391
Depreciation		118		137
OREO		618		1,007
Other		146		395
	$	8,484	$	11,234
Deferred tax liabilities:
Accrued pension		355		359
Purchase accounting adjustment		2,257		4,089
Unrealized gain on available for sale securities		—		2,011
Other		56		37
	$	2,668	$	6,496
Net deferred tax asset	$	5,816	$	4,738

The Company has analyzed the tax positions taken or expected to be taken in its tax returns and concluded that it has no liability related to uncertain tax positions in accordance with FASB ASC 740, Income Taxes.

The Company has evaluated the need for a deferred tax valuation allowance for the year ended December 31, 2013 in accordance with FASB ASC 740. Based on a three year income projection of taxable income and tax strategies that would

76

result in potential securities gains and the effects of off-setting deferred tax liabilities, the Company believes that it is more likely than not that the deferred tax assets are realizable. Therefore, no allowance is required. Years 2010 through 2013 are subject to audit by taxing authorities. The Company had a net operating loss carryforward of $7.8 million as of December 31, 2012. The Company has utilized all of the available net operating loss carryforward as of December 31, 2013.

Allocation of the income tax expense between current and deferred portions is as follows (dollars in thousands):

	2013		2012		2011
Current tax provision	$	—	$	22	$	(907	)
Deferred tax expense (benefit)		2,497		2,126		967
Income tax expense (benefit)	$	2,497	$	2,148	$	60

The following is a reconciliation of the expected income tax expense with the reported expense for each year:

	2013			2012			2011
Statutory federal income tax rate		34.0	%		34.0	%		34.0	%
(Reduction) Increase in taxes resulting from:
Municipal interest		(2.6	)		(2.0	)		(21.8	)
Bank owned life insurance income		(3.0	)		(2.7	)		(6.2	)
Other, net		1.3			(1.5	)		(2.0	)
Effective tax rate		29.7	%		27.8	%		4.0	%

Note 11. Borrowings

The Company uses borrowings in conjunction with deposits to fund lending and investing activities. Borrowings include funding of a short-term and long-term nature. Short-term funding includes overnight borrowings from correspondent banks and securities sold under agreements to repurchase. Long-term borrowings are obtained through the FHLB of Atlanta. As of December 31, 2013, the Company had 1-4 family mortgages in the amount of $139.3 million pledged as collateral to the FHLB for a total borrowing capacity of $88.1 million. The following information is provided for borrowings balances, rates, and maturities (dollars in thousands):

	As of December 31
	2013			2012
Short-term:
Federal Funds purchased	$	—		$	5,412
Securities sold under agreements to repurchase		6,000			—
Total short-term borrowings	$	6,000		$	5,412
Maximum month-end outstanding balance	$	9,722		$	16,446
Average outstanding balance during the year	$	1,451		$	1,348
Average interest rate during the year		0.55	%		0.64	%
Average interest rate at end of year		0.45	%		0.43	%
Long-term:
Federal Home Loan Bank advances	$	77,125		$	49,828
Maximum month-end outstanding balance	$	77,303		$	50,000
Average outstanding balance during the year	$	51,252		$	41,235
Average interest rate during the year		1.10	%		2.40	%
Average interest rate at end of year		0.66	%		1.24	%

77

Maturities of fixed rate long-term debt at December 31, 2013 are as follows (dollars in thousands):

2014	$	30,000
2015		20,000
2016		10,000
2017		5,000
2018		—
Thereafter		12,125
Total	$	77,125

The Company had unsecured lines of credit with correspondent banks available for overnight borrowing totaling $26 million at December 31, 2013.

Note 12. Employee Benefit Plans

The Company adopted the Bank of Essex noncontributory, defined benefit pension plan for all full-time pre-merger Bank of Essex 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 the Defined Benefit Plan participants effective December 31, 2010.

The following table provides a reconciliation of the changes in the plan’s benefit obligations and fair value of assets for the year ended December 31, 2013 and 2012 (dollars in thousands):

	2013			2012
Change in Benefit Obligation
Benefit obligation, beginning of year	$	5,791		$	5,622
Service cost		—			—
Interest cost		224			250
Actuarial gain/(loss)		(749	)		425
Benefits paid		(649	)		(488	)
Change in obligation due to plan amendment		68			—
Settlement (gain)/loss		(23	)		(18	)
Benefit obligation, ending	$	4,662		$	5,791
Change in Plan Assets
Fair value of plan assets, beginning of year	$	5,255		$	3,157
Actual return on plan assets		879			586
Employer contributions		—			2,000
Benefits paid		(649	)		(488	)
Fair value of plan assets, ending	$	5,485		$	5,255
Funded Status	$	823		$	(536	)
Amounts Recognized in the Balance Sheet
Other assets	$	823		$	—
Other liabilities		—			536
Amounts Recognized in Accumulated Other Comprehensive Income
Net loss	$	168		$	1,630
Prior service cost		68			—
Net obligation at transition		—			—
Deferred tax		(81	)		(555	)
Total amount recognized	$	155		$	1,075

78

The accumulated benefit obligation for the defined benefit pension plan at December 31, 2013 and 2012 was $4.7 million and $5.8 million, respectively.

The following table provides the components of net periodic benefit cost for the plan for the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):

	2013			2012			2011
Components of Net Periodic Benefit Cost
Interest cost	$	224		$	250		$	260
Expected return on plan assets		(405	)		(408	)		(301	)
Recognized net loss due to settlement		147			105			3
Recognized net actuarial loss		69			66			—
Net periodic (benefit) cost	$	35		$	13		$	(38	)
Total recognized in net periodic benefit cost and accumulated other comprehensive (loss) income	$	(1,359	)	$	71		$	1,534

The weighted-average assumptions used in the measurement of the Company’s benefit obligation and net periodic benefit cost are shown in the following table:

	2013			2012			2011
Discount rate used for net periodic pension cost		4.00	%		4.50	%		5.50	%
Discount rate used for disclosure		5.00	%		4.00	%		4.50	%
Expected return on plan assets		8.00	%		8.00	%		8.00	%

Other changes in plan assets and benefit obligations recognized in other comprehensive income during 2013 are as follows (dollars in thousands):

Net (gain)/loss	$	(1,462	)
Prior service cost		68
Total amount recognized	$	(1,394	)

The estimated amounts that will amortize from accumulated other comprehensive income into net periodic benefit cost in 2014 are as follows (dollars in thousands):

Prior service cost	$	5
Net loss due to settlement		11
Total amount recognized	$	16

Long-Term Rate of Return

The plan sponsor selects the expected long-term rate of return on assets assumption in consultation with its investment advisors and actuary. This rate is intended to reflect the average rate of earnings expected to be earned on the funds invested or to be invested to provide plan benefits. Historical performance is reviewed, especially with respect to real rates of return (net of inflation), for the major asset classes held or anticipated to be held by the trust, and for the trust itself. Undue weight is not given to recent experience that may not continue over the measurement period, with higher significance placed on current forecasts of future long-term economic conditions.

Because assets are held in a qualified trust, anticipated returns are not reduced for taxes. Further, solely for this purpose, the plan is assumed to continue in force and not terminate during the period during which assets are invested. However, consideration is given to the potential impact of current and future investment policy, cash flow into and out of the trust, and expenses (both investment and non-investment) typically paid from plan assets (to the extent such expenses are not explicitly estimated within periodic cost).

79

Asset Allocation

The pension plan’s weighted-average asset allocations as of December 31, 2013 and 2012 by asset category were as follows:

	2013			2012
Asset Category
Mutual funds – fixed income		40.00	%		39.00	%
Mutual funds – equity		60.00			61.00
Cash and equivalents		0.00			0.00
Total		100.00	%		100.00	%

The fair value of plan assets is measured based on the fair value hierarchy as discussed in Note 21, “Fair Values of Assets and Liabilities”, to the Consolidated Financial Statements. The valuations are based on third party data received as of the balance sheet date. All plan assets are considered Level 1 assets, as quoted prices exist in active markets for identical assets.

The following table presents the fair value of plan assets as of December 31, 2013 and 2012 (dollars in thousands):

	Assets measured at Fair Value (Level 1)
	December 31, 2013		December 31, 2012
Cash	$	6	$	5
Mutual funds:
Fixed income funds		2,178		2,033
International funds		828		418
Large cap funds		844		1,014
Mid cap funds		570		593
Small cap funds		201		258
Stock fund		857		932
	$	5,484	$	5,253

The trust fund is sufficiently diversified to maintain a reasonable level of risk without imprudently sacrificing return, with a targeted asset allocation of 40% fixed income and 60% equities. The investment manager selects investment fund managers with demonstrated experience and expertise, and funds with demonstrated historical performance, for the implementation of the plan’s investment strategy. The investment manager will consider both actively and passively managed investment strategies and will allocate funds across the asset classes to develop an efficient investment structure.

It is the responsibility of the trustee to administer the investments of the trust within reasonable costs, being careful to avoid sacrificing quality. These costs include, but are not limited to, management and custodial fees, consulting fees, transaction costs and other administrative costs chargeable to the trust.

Estimated future contributions and benefit payments, which reflect expected future service, as appropriate, are as follows (dollars in thousands):

Expected Employer Contributions
2014	$	—
Expected Benefit Payments
2014	$	421
2015		744
2016		227
2017		86
2018		394
2019-2023		1,159

80

401(k) Plan

The Company combined the acquired BOE 401(k) and TFC 401(k) plans into the Essex Bank 401(k) plan effective October 1, 2010. The employee may contribute up to 100% of compensation, subject to statutory limitations. The Company matches 100% of employee contributions on the first 3% of compensation, then the Company matches 50% of employee contributions on the next 2% of compensation.

The amounts charged to expense under these plans for the years ended December 31, 2013, 2012 and 2011 were $472,000, $473,000, and $332,000, respectively.

Deferred Compensation Agreements

The Company has deferred compensation agreements with certain key employees and the Board of Directors. The retirement benefits to be provided are fixed based upon the amount of compensation earned and deferred. Deferred compensation expense amounted to $124,000, $99,000, and $107,000 for the years ended December 31, 2013, 2012 and 2011, respectively. The expense associated with these agreements is offset by increased cash surrender value of life insurance policies on the individuals.

Note 13. Stock Option Plans

2009 Stock Option Plan

In 2009, the Company adopted the Community Bankers Trust Corporation 2009 Stock Incentive Plan (the “Plan”). The purpose of the Plan is to further the long-term stability and financial success of the Company by attracting and retaining employees and directors through the use of stock incentives and other rights that promote and recognize the financial success and growth of the Company. The Company believes that ownership of company stock will stimulate the efforts of such employees and directors by further aligning their interests with the interest of the Company’s stockholders. The Plan is to be used to grant restricted stock awards, stock options in the form of incentive stock options and nonstatutory stock options, stock appreciation rights and other stock-based awards to employees and directors of the Company for up to 2,650,000 shares of common stock. No more than 1,500,000 shares may be issued in connection with the exercise of incentive stock options. Annual grants of stock options are limited to 500,000 shares for each participant.

The exercise price of an incentive stock option cannot be less than 100% of the fair market value of such shares on the date of grant, provided that if the participant owns, directly or indirectly, stock possessing more than 10% of the total combined voting power of all classes of stock of the Company, the exercise price of an incentive stock option shall not be less than 110% of the fair market value of such shares on the date of grant. The exercise price of nonstatutory stock option awards cannot be less than 100% of the fair market value of such shares on the date of grant. The option exercise price may be paid in cash or with shares of common stock, or a combination of cash and common stock, if permitted under the participant’s option agreement. The Plan will expire on June 17, 2019, unless terminated sooner by the Board of Directors.

The fair value of each option granted is estimated on the date of grant using the “Black Scholes Option Pricing” method with the following assumptions for the years ended December 31, 2013, 2012 and 2011:

	2013			2012	2011
Expected volatility		50.0	%	50.0%		50.0	%
Expected dividend		2.0	%	2.0% - 3.0%		3.0	%
Expected term (years)		6.25		6.25		5.50
Risk free rate		1.38	%	0.77% - 1.31%		1.12	%

The expected volatility is an estimate of the volatility of the Company’s share price based on historical performance. The risk free interest rates for periods within the contractual life of the awards are based on the U. S. Treasury Zero Coupon implied yield at the time of the grant correlating to the expected term. The expected term is based on the simplified method as provided by the Securities and Exchange Commission Staff Accounting Bulletin No 110 (SAB 110). In accordance with SAB 110, the Company has chosen to use the simplified method, as this is the first plan issued by the Company as Community Bankers Trust Corporation; therefore, no historical exercise data exists. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts over the life of the options at the time of the grant.

The Company plans to issue new shares of common stock when options are exercised.

81

In January 2013, the Company granted 25,000 restricted shares of common stock to a senior executive in accordance with the minimum rules for long-term equity grants for companies participating in the Department of the Treasury’s TARP Capital Purchase Program. These rules require that for each 25% of total financial assistance repaid, 25% of the total restricted stock may become transferrable. See Note 27 for further information related to the Company’s participation in the TARP Capital Purchase Program.

The Company issued equity grants to non-employee directors as payment for annual retainer fees. The fair market value of these grants was the closing price of the Company’s stock at the grant date. A summary of these grants for the years ended December 31, 2013, 2012 and 2011 is shown in the following table:

	For the Year Ended
	2013				2012				2011
Month	Shares Issued		Fair Market Value		Shares Issued		Fair Market Value		Shares Issued		Fair Market Value
February		—	$	—		—	$	—		39,972	$	1.23
March		8,751		3.37		—		—		4,082		1.33
June		9,096		3.24		15,925		2.04		115,040		1.13
September		8,073		3.65		13,477		2.41		—		—
December		7,965		3.70		13,260		2.45		—		—

In October 2011, the Company granted 50,000 employee options which vested 100% on December 31, 2011. The Company granted 270,000 options in 2012 and 230,000 options in 2013 to employees which vest ratably over the requisite service period of four years. A summary of options outstanding for the year ended December 31, 2013, is shown in the following table:

	Options
	Number of Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding at beginning of year		412,000		$	1.74
Granted		230,000			2.86
Forfeited		(31,750	)		2.65
Expired		—			—
Exercised		(5,000	)		1.25
Outstanding at end of year		605,250			2.12	$	992,618
Options outstanding and exercisable at end of year		195,313			1.95	$	352,849
Weighted average remaining contractual life for outstanding and exercisable shares at year end		87 months

The weighted average fair value per option of options granted during the year was $1.16, $0.46 and $0.36 for the years ended December 31, 2013, 2012 and 2011, respectively. The aggregate intrinsic value of a stock option in the table above represents the aggregate pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by option holders had all option holders exercised their options on December 31, 2013. This amount changes with changes in the market value of the Company’s stock. The Company received $6,000 in cash related to option exercises with a total intrinsic value of $11,000 for the period ended December 31, 2013. There were no options exercised for either of the periods ended December 31, 2012 and 2011.

82

The Company recorded total stock-based compensation expense of $253,000, $156,000 and $227,000 for the years ended December 31, 2013, 2012 and 2011, respectively. Of the $253,000 in expense that was recorded in 2013, $135,000 related to employee grants and is classified as “personnel expense” on the Consolidated Statements of Income; $118,000 related to the non-employee director grants and is classified as “other operating expenses.” Of the $156,000 in expense that was recorded in 2012, $57,000 related to employee grants and is classified as “personnel expense” on the Consolidated Statements of Income; $99,000 related to the non-employee director grants and is classified as “other operating expenses.” Of the $227,000 in expense that was recorded in 2011, $44,000 related to employee grants and is classified as “personnel expense” on the Consolidated Statements of Income; $183,000 related to the non-employee director grants and is classified as “other operating expenses.”

The following table summarizes non-vested options and restricted stock outstanding at December 31, 2013:

	Options					Restricted Stock
	Number of Shares			Weighted Average Grant-Date Fair Value		Number of Shares			Weighted Average Grant-Date Fair Value
Non-vested at beginning of the year		299,000		$	0.47		7,500		$	2.78
Granted		230,000			1.16		—			—
Vested		(87,313	)		0.48		(3,750	)		2.78
Forfeited		(31,750	)		0.91		—			—
Non-vested at end of year		409,937			0.82		3,750			2.78

The unrecognized compensation expense related to non-vested options and restricted stock was $290,000 at December 31, 2013 to be recognized over a weighted average period of 33 months. The total fair market value of shares vested during the years ended December 31, 2013, 2012 and 2011 was $42,000, $51,000 and $35,000, respectively.

TFC and BOE Stock Option Plans

Prior to the mergers, both TFC and BOE maintained stock option plans as incentives for certain officers and directors. During 2007, TFC replaced its stock option plan with an equity compensation plan that issued restricted stock awards. Under the terms of these plans, all options and awards were fully vested and exercisable, and any unrecognized compensation expenses were accelerated. Due to the mergers on May 31, 2008, these plans were terminated and the Company issued replacement options amounting to 332,351 and 161,426 to former employees of TFC and BOE, which represented exchange rates of 1.42 and 5.7278, respectively.

The options were valued at $1.488 million using the Black-Scholes model at the time of acquisition of TFC and BOE by the Company. The options were considered part of the acquisition price and, therefore, were not expensed by the Company. Assumptions were for a discount rate of 4.06% and 25% volatility with a remaining term of 4.83 years for TFC options and 5.25 years for BOE options.

83

A summary of the options outstanding for the year ended December 31, 2013 is shown in the following table:

	Options
	Number of Shares			Weighted Average Exercise Price
Outstanding at beginning of the year		91,078		$	5.36
Granted		—			—
Forfeited		(1,896	)		5.01
Expired		(49,048	)		5.72
Exercised		—			—
Outstanding at end of year		40,134			4.94
Options outstanding and exercisable at end of the year		40,134			4.94
Weighted average remaining contractual life for outstanding and exercisable shares at year end		10 months

The aggregate intrinsic value of the options outstanding and exercisable was zero for each of the years ended December 31, 2013, 2012 and 2011.

Note 14. Earnings Per Common Share

Basic earnings (loss) per common 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 Available to Common Stockholders (Numerator)		Weighted Average Common Shares (Denominator)		Per Common Share Amount
For the Twelve Months ended December 31, 2013
Shares issued				21,689
Unissued vested restricted stock				11
Basic EPS	$	4,787		21,700	$	0.22
Effect of dilutive stock awards and options		—		222		—
Diluted EPS	$	4,787		21,922	$	0.22
For the Twelve Months ended December 31, 2012
Shares issued				21,640
Unissued vested restricted stock				7
Basic EPS	$	4,478		21,647	$	0.21
Effect of dilutive stock awards and options		—		70		—
Diluted EPS	$	4,478		21,717	$	0.21
For the Twelve Months ended December 31, 2011
Basic EPS	$	354		21,565	$	0.02
Effect of dilutive stock awards and options				—		—
Diluted EPS	$	354		21,565	$	0.02

84

Excluded from the computation of diluted earnings per common share were approximately 40,000, 1.3 million, and 1.2 million of awards, options or warrants during 2013, 2012 and 2011, respectively, because their inclusion would be antidilutive.

Note 15. Related Party Transactions

In the ordinary course of business, the Bank has and expects to continue to have transactions, including borrowings, with its executive officers, directors, and their affiliates. All such loans are made on substantially the same terms as those prevailing at the time for comparable loans to unrelated persons.

The table below presents the activity for both direct and indirect loans at December 31, 2013 and 2012 (dollars in thousands).

	2013			2012
Balance, beginning of year	$	3,115		$	3,703
Principal additions		1,765			575
Repayments and reclassifications		(2,579	)		(1,163	)
Balance, end of year	$	2,301		$	3,115

Indirect loans at December 31, 2013 and 2012 were $1.8 million and $1.7 million, respectively.

Note 16. Commitments and Contingent Liabilities

In the normal course of business, there are outstanding various commitments and contingent liabilities, such as guarantees and commitments to extend credit, which are not reflected in the accompanying consolidated financial statements. The Bank does not anticipate losses as a result of these transactions. See Note 19 with respect to financial instruments with off-balance-sheet risk.

In February 2010, the Company’s Board of Directors approved two transaction-based bonus awards to the officer who was the Company’s then chief strategic officer. The approval of the bonus awards was made pursuant to a provision in the officer’s employment agreement that provides for a cash bonus payment for financial advisory and other services that the officer renders in connection with the negotiation and consummation of a merger or other business combination involving the Company or any of its affiliates or the acquisition by the Company or any of its affiliates of a substantial portion of the assets or deposits of another financial institution. The bonus awards related to the officer’s financial advisory and other services with respect to the Bank’s acquisition of certain assets and assumption of all deposit liabilities of four former branch offices of The Community Bank of Loganville on November 21, 2008 and the Bank’s acquisition of certain assets and assumption of all deposit liabilities of seven former branch offices of SFSB on January 30, 2009. The amounts of the bonus awards are (i) $1,169,445, calculated as 0.50% of the total amount of non-brokered deposits that the Bank assumed in the November 2008 transaction and (ii) $1,816,430, calculated as 0.50% of the total amount of loans and other assets that the Bank acquired in the January 2009 transaction. The Company believes that these bonus awards are permitted under the rules and regulations of the TARP Capital Purchase Program. In accordance with generally accepted accounting principles, the Company has reflected these bonus awards in the financial statements for the year ended December 31, 2009. The Company made payment of the entire amount of these bonus awards to the individual in six equal installments during a period from February 12, 2010 to June 30, 2010.

During the first two quarters of 2010, the Company discussed with the Federal Reserve Bank of Richmond and the Virginia Bureau of Financial Institutions certain issues with respect to the payment of these bonus awards. These issues include the compliance of the terms and structure of the bonus awards with Federal Reserve System Regulation W and the rules and regulations of the TARP Capital Purchase Program. The Company has worked diligently to resolve these issues, but, as of March 14, 2014, these issues remain open with its regulators. The Company cannot make any assurances as to the amount of these bonus awards, if any, that will ultimately be permissible following the resolution of these issues. In addition, the Company cannot make any assurances as to any penalties that the regulatory agencies may assess if the Company is determined to have violated any of the rules and regulations described above. Such penalties may include, with respect to any Federal Reserve violations, formal or informal action directing the Company to make immediate corrections, civil penalties if it is determined that the violation was caused with intent, undertaken with reckless disregard for the Company’s financial safety and soundness, or results in gain to the Company. In addition, such penalties may include, with respect to any TARP violations, civil and criminal penalties and restitution of payments paid by the Company to the officer. The Company is unable to make an estimate of the possible loss or range of loss that it may incur as a result of these issues.

85

Note 17. Dividend Limitations on Affiliate Bank

Transfers of funds from the banking subsidiary to the parent corporation in the form of loans, advances and cash dividends are restricted by federal and state regulatory authorities. As of December 31, 2013 and 2012, the aggregate amount of unrestricted funds that could be transferred from the banking subsidiary to the parent corporation, without prior regulatory approval, totaled $3.5 million and $787,000, respectively. From January 1, 2012 until December 5, 2012, and for the year ended December 31, 2011, the Bank was not permitted to make dividend payments to the holding company without prior regulatory approval, as required by the formal written agreement that the Company had with its regulators.

Note 18. Concentration of Credit Risk

At December 31, 2013 and 2012, the Bank’s loan portfolio consisted of commercial, real estate and consumer (installment) loans. Real estate secured loans represented the largest concentration at 83.75% and 86.96% of the loan portfolio for 2013 and 2012, respectively.

The Bank maintains a portion of its cash balances with several financial institutions located in its market area. Accounts at each institution are secured by the FDIC up to $250,000. Uninsured balances were $7.1 million and $8.9 million at December 31, 2013 and 2012, respectively

Note 19. Financial Instruments With Off-Balance Sheet Risk

The Bank is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The contract amounts of those instruments reflect the extent of involvement the Bank has in particular classes of financial instruments.

The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

A summary of the contract amounts of the Bank’s exposure to off-balance sheet risk as of December 31, 2013 and 2012, is as follows (dollars in thousands):

	2013		2012
Commitments with off-balance sheet risk:
Commitments to extend credit	$	72,183	$	64,056
Standby letters of credit		9,978		9,487
Total commitments with off-balance sheet risk	$	82,161	$	73,543

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 Bank 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 commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit are generally uncollateralized and usually do not contain a specified maturity date and 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 customers. The amount of collateral obtained, if deemed necessary by

86

the Bank upon extension of credit, is based on management’s evaluation of the counterparty. Since most of the letters of credit are expected to expire without being drawn upon, they do not necessarily represent future cash requirements.

Note 20. Minimum Regulatory Capital Requirements

The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and tier 1 capital (as defined in the regulations) to risk weighted assets (as defined), and of tier 1 capital (as defined) to adjusted average total assets (as defined). Management believes, as of December 31, 2013 and 2012, that the Company and Bank met all capital adequacy requirements to which they are subject.

As of December 31, 2013, based on regulatory guidelines, the Company believes that it is well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Company and the Bank must maintain minimum total risk-based, tier 1 risk-based, and tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that date that management believes have changed the Bank’s category.

The Company’s and the Bank’s actual capital amounts and ratios are presented in the following table (dollars in thousands).

	Actual					Required for Capital Adequacy Purposes					Required in Order to be Well Capitalized Under Prompt Corrective Action
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2013:
Total Capital to risk weighted assets
Company	$	113,805		16.82	%	$	54,124		8.00	%		NA		NA
Bank		113,624		16.79	%		54,132		8.00	%		67,666		10.00	%
Tier 1 Capital to risk weighted assets
Company		105,672		15.62	%		27,062		4.00	%		NA		NA
Bank		105,489		15.59	%		27,066		4.00	%		40,599		6.00	%
Tier 1 Capital to adjusted average total assets
Company		105,672		9.52	%		44,396		4.00	%		NA		NA
Bank		105,489		9.50	%		44,402		4.00	%		55,503		5.00	%
As of December 31, 2012:
Total Capital to risk weighted assets
Company	$	112,463		16.99	%	$	52,969		8.00	%		NA		NA
Bank		111,687		16.87	%		52,971		8.00	%		66,214		10.00	%
Tier 1 Capital to risk weighted assets
Company		104,521		15.79	%		26,485		4.00	%		NA		NA
Bank		103,745		15.67	%		26,486		4.00	%		39,728		6.00	%
Tier 1 Capital to adjusted average total assets
Company		104,521		9.41	%		44,444		4.00	%		NA		NA
Bank		103,745		9.34	%		44,449		4.00	%		55,561		5.00	%

87

Note 21. 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. FASB 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 FASB ASC 825 elections as of December 31, 2013.

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).

	December 31, 2013
	Total		Level 1		Level 2		Level 3
Investment securities available for sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	98,987	$	94,935	$	4,052	$	—
U.S. Gov’t sponsored agencies		486		—		486		—
State, county, and municipal		134,096		2,482		131,614		—
Corporate and other bonds		6,349		—		6,349		—
Mortgage backed – U.S. Gov’t agencies		3,439		—		3,439		—
Mortgage backed – U.S. Gov’t sponsored agencies		22,420		2,531		19,889		—
Total investment securities available for sale		265,777		99,948		165,829		—
Loans held for sale		100		—		100		—
Total assets at fair value	$	265,877	$	99,948	$	165,929	$	—
Total liabilities at fair value	$	—	$	—	$	—	$	—

88

	December 31, 2012
	Total		Level 1		Level 2		Level 3
Investment securities available for sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	153,277	$	153,277	$	—	$	—
U.S. Gov’t sponsored agencies		503		—		503		—
State, county and municipal		117,596		6,742		110,854		—
Corporate and other bonds		7,618		1,009		6,609		—
Mortgage backed – U.S. Gov’t agencies		15,560		—		15,560		—
Mortgage backed – U.S. Gov’t sponsored agencies		14,524		—		14,524		—
Total investment securities available for sale		309,078		161,028		148,050		—
Loans held for sale		1,266		—		1,266		—
Total assets at fair value	$	310,344	$	161,028	$	149,316	$	—
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 sale

The carrying amounts of loans held for sale 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. The following table presents assets measured at fair value on a nonrecurring basis for the periods ended December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013
	Total		Level 1		Level 2		Level 3
Impaired loans, non-covered	$	10,334	$	—	$	1,791	$	8,543
Other real estate owned (OREO), non-covered		6,244		—		—		6,244
Other real estate owned (OREO), covered		2,692		—		—		2,692
Total assets at fair value	$	19,270	$	—	$	1,791	$	17,479
Total liabilities at fair value	$	—	$	—	$	—	$	—

89

	December 31, 2012
	Total		Level 1		Level 2		Level 3
Impaired loans, non-covered	$	15,552	$	—	$	4,039	$	11,513
Other real estate owned (OREO), non-covered		10,793		—		—		10,793
Other real estate owned (OREO), covered		3,370		—		—		3,370
Total assets at fair value	$	29,715	$	—	$	4,039	$	25,676
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 December 31, 2013 and 2012, 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.

90

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.

	December 31, 2013
(dollars in thousands)	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Securities held to maturity	$	28,563	$	30,305	$	—	$	30,305	$	—
Loans, non-covered		585,729		591,081		—		582,538		8,543
Loans, covered		72,791		88,693		—		—		88,693
FDIC indemnification asset		25,409		10,557		—		—		10,557
Financial liabilities:
Interest bearing deposits		822,209		824,895		—		824,895		—
Long-term borrowings		81,249		81,014		—		81,014		—

	December 31, 2012
(dollars in thousands)	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Securities held to maturity	$	42,283	$	45,228	$	—	$	45,228	$	—
Loans, non-covered		562,562		569,188		—		557,675		11,513
Loans, covered		84,153		96,024		—		—		96,024
FDIC indemnification asset		33,837		17,477		—		—		17,477
Financial liabilities:
Interest bearing deposits		896,340		872,920		—		872,920		—
Long-term borrowings		53,952		54,569		—		54,569		—

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 December 31, 2013. The Company applied the provisions of FASB 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.

91

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)

The fair value 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. The fair value of impaired loans is consistent with the methodology used for the FASB ASC 820 disclosure for assets recorded at fair value on a nonrecurring basis presented above.

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.

92

Federal funds purchased

The carrying amount of federal funds purchased approximates fair value.

Long-term borrowings

The fair values of the Company’s long-term borrowings (FHLB advances and trust preferred capital notes) 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 amount 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.

Note 22. Trust Preferred Capital Notes

On December 12, 2003, BOE Statutory Trust I, a wholly-owned subsidiary of the Company, was formed for the purpose of issuing redeemable capital securities. On December 12, 2003, $4.124 million of trust preferred securities were issued through a direct placement. The securities have a LIBOR-indexed floating rate of interest. The average interest rate at December 31, 2013, 2012 and 2011 was 3.28%, 3.57%, and 3.43%, respectively. The securities have a mandatory redemption date of December 12, 2033 and are subject to varying call provisions which began December 12, 2008. The principal asset of the Trust is $4.124 million of the Company’s junior subordinated debt securities with the like maturities and like interest rates to the capital securities.

The trust preferred notes may be included in tier 1 capital for regulatory capital adequacy determination purposes up to 25% of tier 1 capital after its inclusion. The portion of the trust preferred not considered as tier 1 capital may be included in tier 2 capital. At December 31, 2013, all trust preferred notes were included in tier 1 capital.

The obligations of the Company with respect to the issuance of the capital securities constitute a full and unconditional guarantee by the Company of the Trust’s obligations with respect to the capital securities.

Subject to certain exceptions and limitations, the Company may elect from time to time to defer interest payments on the junior subordinated debt securities, which would result in a deferral of distribution payments on the related capital securities. During 2011, the Company accrued and elected to defer $143,000 in total interest payments related to its trust preferred notes, respectively. On March 16, 2012, the Company paid all of its previously deferred interest payments and the interest payment that would have been due on March 31, 2012. Accordingly, the Company is current in its obligations under the trust preferred notes.

93

Note 23. Lease Commitments

The following table represents a summary of non-cancelable operating leases for bank premises that have initial or remaining terms in excess of one year as of December 31, 2013 (dollars in thousands):

2014	$	758
2015		694
2016		650
2017		597
2018		583
Thereafter		2,942
Total of future payments	$	6,224

Rent expense for the years ended December 31, 2013, 2012 and 2011 was $621,000, $659,000, and $695,000, respectively.

Note 24. Other Noninterest Expense

Other noninterest expense totals are presented in the following tables. Components of these expenses exceeding 1.0% of the aggregate of total net interest income and total noninterest income for any of the past three years are stated separately.

	December 31
(dollars in thousands)	2013		2012		2011
Bank franchise tax	$	513	$	466	$	552
Telephone and internet line		699		777		789
Stationery, printing and supplies		453		504		654
Exam fees		529		569		776
Directors fees		413		422		530
Credit expense		707		948		1,008
Other expenses		2,247		1,863		1,903
Total other operating expenses	$	5,561	$	5,549	$	6,212

94

Note 25. Parent Corporation Only Financial Statements

COMMUNITY BANKERS TRUST CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS

AS OF DECEMBER 31, 2013 and 2012

(dollars in thousands)

	2013			2012
Assets
Cash	$	323		$	838
Other assets		1,711			1,470
Investments in subsidiaries		108,789			117,176
Total assets	$	110,823		$	119,484
Liabilities
Other liabilities	$	40		$	42
Balances due to subsidiary bank		—			1
Balances due to non-bank subsidiary		4,124			4,124
Total liabilities		4,164			4,167
Stockholders’ Equity
Preferred stock (5,000,000 shares authorized, $0.01 par value) 10,680 and 17,680 issued and outstanding, respectively		10,680			17,680
Warrants on preferred stock		1,037			1,037
Discount on preferred stock		—			(234	)
Common stock (200,000,000 shares authorized $0.01 par value; 21,709,096 and 21,670,212 shares issued and outstanding, respectively)		217			217
Additional paid in capital		144,656			144,398
Retained earnings		(45,822	)		(50,609	)
Accumulated other comprehensive income		(4,109	)		2,828
Total stockholders’ equity	$	106,659		$	115,317
Total liabilities and stockholders’ equity	$	110,823		$	119,484

95

COMMUNITY BANKERS TRUST CORPORATION

PARENT COMPANY ONLY STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 and 2011

(dollars in thousands)

	2013			2012			2011
Income:
Interest and dividend income	$	—		$	—		$	—
Dividends received from subsidiaries		7,820			3,048			—
Gains on sale of securities, net		—			—			—
Other operating income		4			11			6
Total income		7,824			3,059			6
Expenses:
Interest expense		137			180			205
Management fee paid to subsidiaries		144			138			166
Stock option expense		5			(54	)		62
Bad debt		—			—			(17	)
Bank franchise taxes		236			180			182
Professional and legal expenses		112			129			102
Other operating expenses		74			(160	)		209
Total expenses		708			413			909
Equity in income / (loss) of subsidiaries		(1,449	)		2,778			2,040
Net income before income taxes		5,667			5,424			1,137
Income tax benefit		239			158			307
Net income	$	5,906		$	5,582		$	1,444

96

COMMUNITY BANKERS TRUST CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 and 2011

(dollars in thousands)

	2013			2012			2011
Operating activities:
Net income	$	5,906		$	5,582		$	1,444
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Issuance of common stock and stock options		258			156			245
Undistributed equity in loss (income) of subsidiary		1,449			(2,778	)		(2,040	)
(Increase) decrease in other assets		(241	)		(194	)		95
(Decrease) increase in other liabilities, net		(2	)		(239	)		171
Provision for loan loss		—			—			(17	)
Net cash and cash equivalents provided by (used in) operating activities		7,370			2,527			(102	)
Investing activities:
Recovery of bad debt		—			—			17
Net cash and cash equivalents provided by investing activities		—			—			17
Financing activities:
Repurchase of preferred stock		(7,000	)		—			—
Cash dividends paid		(885	)		(2,210	)		—
Net cash and cash equivalents used in financing activities		(7,885	)		(2,210	)		—
(Decrease) increase in cash and cash equivalents		(515	)		317			(85	)
Cash and cash equivalents at beginning of the period		838			521			606
Cash and cash equivalents at end of the period	$	323		$	838		$	521

97

Note 26. Subsequent Events

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

Note 27. Preferred Stock

On December 19, 2008, under the Department of the Treasury’s TARP Capital Purchase Program, the Company issued to the U.S. Treasury 17,680 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A (Series A Preferred Stock), and a 10-year warrant to purchase up to 780,000 shares of common stock at an exercise price of $3.40 per share. Cumulative dividends on the Series A Preferred Stock are payable at 5% per annum through the February 2014 payment, and at a rate of 9% per annum thereafter. The warrant is exercisable at any time until December 19, 2018, and the number of shares of common stock underlying the warrant and the exercise price are subject to adjustment for certain dilutive events.

The Company received proceeds of $17.68 million for the Series A Preferred Stock and the Warrant. The Company allocated the proceeds based on a relative fair value basis between the Series A Preferred Stock and the Warrant, recording $16.64 million and $1.04 million, respectively. Fair value of the preferred stock was estimated based on a discounted cash flow model using an estimated life of 50 years and a discount rate of 12%. Fair value of the stock warrant was estimated using a Black-Scholes model assuming stock price volatility of 27.5%, a dividend yield of 0.5%, a risk-free rate of 1.35% and an expected life of five years. The $16.64 million of Series A Preferred Stock is net of a discount of $1.04 million. The discount is being accreted to the $17.68 million redemption price over a five year period. The accretion of the discount and dividends on the preferred stock reduce retained earnings.

Each share of Series A Preferred Stock issued and outstanding has no par value, has a liquidation preference of $1,000 and is redeemable at the Company’s option, subject to approval of the Federal Reserve, at a redemption price equal to $1,000 plus accrued and unpaid dividends. The Series A Preferred Stock has a preference over the Company’s common stock upon liquidation. Dividends on the preferred stock, if declared, are payable quarterly in arrears. The Company’s ability to declare or pay dividends on, or purchase, redeem or otherwise acquire, its common stock is subject to certain restrictions in the event that the Company fails to pay or set aside full dividends on the preferred stock for the latest completed dividend period.

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.

During 2013, the Company repurchased 7,000 shares of the original 17,680 shares of Series A Preferred Stock. The Company funded the repurchase through the earnings of its banking subsidiary. The form of the repurchase was a redemption under the terms of the Series A Preferred Stock. The Company paid the Treasury $7.0 million, which represented 100% of the par value of the preferred stock repurchased plus accrued dividends with respect to such shares.

As of December 31, 2013, the Company is current in its payment of dividends with respect to the Series A Preferred Stock.

98

Note 28. Quarterly Data (unaudited)

	Year Ended December 31
	2013								2012
	First		Second		Third		Fourth		First			Second		Third		Fourth
Interest and dividend income	$	12,166	$	12,491	$	13,171	$	12,217	$	13,809		$	14,119	$	12,872	$	12,919
Interest expense		1,894		1,791		1,749		1,644		2,712			2,587		2,339		2,054
Net interest income		10,272		10,700		11,422		10,573		11,097			11,532		10,533		10,865
Provision for loan losses		—		—		—		—		250			500		—		450
Net interest income after provision for loan losses		10,272		10,700		11,422		10,573		10,847			11,032		10,533		10,415
Noninterest income		1,326		1,338		593		1,467		975			1,462		2,470		1,299
Noninterest expenses		9,711		9,758		9,433		10,386		10,442			10,811		10,357		9,693
Income (loss) before income taxes		1,887		2,280		2,582		1,654		1,380			1,683		2,646		2,021
Income tax expense (benefit)		563		673		800		461		390			473		837		448
Net income (loss)	$	1,324	$	1,607	$	1,782	$	1,193	$	990		$	1,210	$	1,809	$	1,573
Dividends paid on preferred stock		221		221		208		235		221			221		221		221
Accretion of discount on preferred stock		58		59		73		44		55			55		55		55
Accumulated preferred dividends		—		—		—		—		—			—		—		—
Net income (loss) available to common shareholders	$	1,045	$	1,327	$	1,501	$	914	$	714		$	934	$	1,533	$	1,297
Earnings (loss) per common share, basic	$	0.05	$	0.06	$	0.07	$	0.04	$	0.03		$	0.04	$	0.07	$	0.06
Earnings (loss) per common share, diluted	$	0.05	$	0.06	$	0.07	$	0.04	$	0.03		$	0.04	$	0.07	$	0.06
									2011
									First			Second		Third		Fourth
Interest and dividend income									$	13,394		$	14,492	$	14,272	$	13,877
Interest expense										3,311			3,079		2,974		2,864
Net interest income										10,083			11,413		11,298		11,013
Provision for loan losses										1,498			—		—		—
Net interest income after provision for loan losses										8,585			11,413		11,298		11,013
Noninterest income										2,430			973		3,355		1,476
Noninterest expenses										13,047			11,738		12,699		11,555
Income (loss) before income taxes										(2,032	)		648		1,954		934
Income tax expense (benefit)										(838	)		127		532		239
Net income (loss)									$	(1,194	)	$	521	$	1,422	$	695
Dividends paid on preferred stock										—			—		—		—
Accretion of discount on preferred stock										51			53		51		51
Accumulated preferred dividends										221			221		221		221
Net income (loss) available to common shareholders									$	(1,466	)	$	247	$	1,150	$	423
Earnings (loss) per common share, basic									$	(0.07	)	$	0.01	$	0.05	$	0.02
Earnings (loss) per common share, diluted									$	(0.07	)	$	0.01	$	0.05	$	0.02

99

Note 29. Branch Sale

On November 8, 2013, the Company sold the four branches located in Georgia and related deposits to Community & Southern Bank, headquartered in Atlanta, Georgia (the “Branch Sale”). The Branch Sale resulted in the transfer of $193.2 million of deposits and $20,000 of consumer loans associated with such deposits to Community & Southern Bank in exchange for the payment of a deposit premium of $2.6 million. Certain fixed assets with a fair value of $5.2 million (cost, net of accumulated depreciation of $1.2 million) were also sold. In addition, $1.5 million of remaining unamortized intangible assets related to customers and deposits associated with the Branch Sale.

The following table summarizes deposits related to the Branch Sale (dollars in thousands):

Deposits
Noninterest bearing	$	15,869
Interest bearing		177,301
Total deposits	$	193,170

On October 25, 2013 the Company sold $24.3 million in loans held by the Georgia branches to Pinnacle Bank, headquartered in Elberton, Georgia (the “Loan Sale”), at a premium of 1.0%.

The following summarizes the loans related to the Loan Sale (dollars in thousands):

Mortgage loans on real estate:
Residential 1-4 family	$	2,240
Commercial		15,762
Construction and land development		2,895
Second mortgages		41
Multifamily		1,802
Agriculture		—
Total real estate loans		22,740
Commercial loans		1,147
Consumer installment loans		424
All other loans		—
Gross loans		24,311
Net deferred costs		34
Total loans	$	24,345

Based on the premiums outlined above, the Company recorded a net gain on the combined transactions of $255,000. This gain is net of the deposit premium of $2.6 million, a write off of $1.5 million of existing core deposit intangibles, a $827,000 loss on the sale of fixed assets, a $243,000 gain on the sale of loans and $258,000 in transaction related costs.

100

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Not applicable.

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this Form 10-K, the Company’s management, with the participation of the Company’s chief executive officer and 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 Commission’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 thereunder.

Management’s Report on 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.

As of December 31, 2013, management assessed the effectiveness of the Company’s internal control over financial reporting based on the criteria for effective internal control over financial reporting established in “Internal Control — Integrated Framework,” issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission in 1992. This assessment included controls over the preparation of the schedules equivalent to the basic financial statements in accordance with the instructions for the Consolidated Financial Statements for Bank Holding Companies (Form FR Y-9C) to meet the reporting requirements of Section 112 of the Federal Deposit Insurance Corporation Improvement Act.

Based on its assessment, management concluded that, as of December 31, 2013, the Company’s internal control over financial reporting was effective based on the criteria set forth by COSO in its “Internal Control — Integrated Framework.”

Elliott Davis, LLC, the independent registered public accounting firm that audited the consolidated financial statements of the Company included in this Form 10-K, has issued an attestation report on management’s assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2013. The report is included in Item 8, “Financial Statements and Supplementary Data”, above under the heading “Report of Independent Registered Public Accounting Firm.”

Changes in Internal Control over Financial Reporting

There was no change in the Company’s internal control over financial reporting identified in connection with the evaluation of internal controls that occurred during the fourth quarter of 2013 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

101

ITEM 9B. OTHER INFORMATION

Not applicable.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this item is incorporated by reference to the Company’s definitive Proxy Statement for the 2014 Annual Meeting of Shareholders, to be filed within 120 days after the end of the fiscal year that this Form 10-K covers.

ITEM 11. EXECUTIVE COMPENSATION

The information required by this item is incorporated by reference to the Company’s definitive Proxy Statement for the 2014 Annual Meeting of Shareholders, to be filed within 120 days after the end of the fiscal year that this Form 10-K covers.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required by this item is incorporated by reference to the Company’s definitive Proxy Statement for the 2014 Annual Meeting of Shareholders, to be filed within 120 days after the end of the fiscal year that this Form 10-K covers.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by this item is incorporated by reference to the Company’s definitive Proxy Statement for the 2014 Annual Meeting of Shareholders, to be filed within 120 days after the end of the fiscal year that this Form 10-K covers.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

The information required by this item is incorporated by reference to the Company’s definitive Proxy Statement for the 2014 Annual Meeting of Shareholders, to be filed within 120 days after the end of the fiscal year that this Form 10-K covers.

102

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a) The following documents are filed as part of this Form 10-K:

1. Consolidated Financial Statements. Reference is made to the Consolidated Financial Statements, the report thereon and the notes thereto, with respect to the Company, commencing at page 46 of this Form 10-K.

2. Financial Statement Schedules. All supplemental schedules are omitted as inapplicable or because the required information is included in the Consolidated Financial Statements or notes thereto.

3. Exhibits

No.	Description
2.1	Agreement and Plan of Merger, dated as of September 5, 2007, by and between Community Bankers Acquisition Corp. and TransCommunity Financial Corporation, incorporated by reference to the Company’s Current Report on Form 8-K filed on September 7, 2007 (File No. 001-32590)
2.2	Agreement and Plan of Merger, dated as of December 13, 2007, by and between Community Bankers Acquisition Corp. and BOE Financial Services of Virginia, Inc., incorporated by reference to the Company’s Current Report on Form 8-K filed on December 14, 2007 (File No. 001-32590)
2.3	Purchase and Assumption Agreement, dated as of November 21, 2008, by and among the Federal Deposit Insurance Corporation, as Receiver for The Community Bank, Bank of Essex and the Federal Deposit Insurance Corporation, incorporated by reference to the Company’s Current Report on Form 8-K filed on November 28, 2008 (File No. 001-32590)
2.4	Purchase and Assumption Agreement, dated as of January 30, 2009, by and among the Federal Deposit Insurance Corporation, Receiver of Suburban Federal Savings Bank, Crofton, Maryland, Bank of Essex and the Federal Deposit Insurance Corporation, incorporated by reference to the Company’s Current Report on Form 8-K filed on February 5, 2009 (File No. 001-32590)
2.5	Purchase and Assumption Agreement, dated August 19, 2013, between Community & Southern Bank and Essex Bank, incorporated by reference to the Company’s Current Report on Form 8-K filed on August 23, 2013 (File No. 001-32590)
2.6	Agreement and Plan of Reincorporation and Merger, dated as of May 13, 2013, by and between Community Bankers Trust Corporation, a Delaware corporation, and Community Bankers Trust Corporation, a Virginia corporation (formerly known as CBTC Virginia Corporation), incorporated by reference to the Company’s Current Report on Form 8-K filed on January 7, 2014 (File No. 001-32590)
3.1	Amended and Restated Articles of Incorporation of Community Bankers Trust Corporation, a Virginia corporation (formerly known as CBTC Virginia Corporation), incorporated by reference to the Company’s Current Report on Form 8-K filed on January 7, 2014 (File No. 001-32590)
3.2	Certificate of Designations for Fixed Rate Cumulative Perpetual Preferred Stock, Series A of Community Bankers Trust Corporation, a Virginia corporation (formerly known as CBTC Virginia Corporation), incorporated by reference to the Company’s Current Report on Form 8-K filed on January 7, 2014 (File No. 001-32590)
3.3	Amended and Restated Bylaws of Community Bankers Trust Corporation, a Virginia corporation (formerly known as CBTC Virginia Corporation), incorporated by reference to the Company’s Current Report on Form 8-K filed on January 7, 2014 (File No. 001-32590)

103

4.1	Specimen Common Stock Certificate, incorporated by reference to the Company’s Registration Statement on Form S-1 or amendments thereto (File No. 333-124240)
4.2	Warrant to Purchase 780,000 Shares of Common Stock, incorporated by reference to the Company’s Current Report on Form 8-K filed on January 7, 2014 (File No. 001-32590)
10.1	TARP Merger Side Letter Agreement, dated January 1, 2014, between Community Bankers Trust Corporation, a Virginia corporation, Community Bankers Trust Corporation, a Delaware corporation, and the United States Department of the Treasury), incorporated by reference to the Company’s Current Report on Form 8-K filed on January 7, 2014 (File No. 001-32590)
10.2	Letter Agreement, dated December 19, 2008, including the Securities Purchase Agreement — Standard Terms incorporated by reference therein, between Community Bankers Trust Corporation, a Delaware corporation, and the United States Department of the Treasury, incorporated by reference to the Current Report on Form 8-K filed on December 23, 2008 (File No. 001-32590)
10.3	ARRA Side Letter Agreement, dated January 1, 2014, between Community Bankers Trust Corporation, a Virginia corporation, and the United States Department of the Treasury), incorporated by reference to the Company’s Current Report on Form 8-K filed on January 7, 2014 (File No. 001-32590)
10.4	Form of Waiver, executed by Rex L. Smith, III, Bruce E. Thomas, Jeff R. Cantrell, John M. Oakey, III, and W. Thomas Townsend), incorporated by reference to the Company’s Current Report on Form 8-K filed on January 7, 2014 (File No. 001-32590)
10.5	Written Agreement, effective April 21, 2010, by and among Community Bankers Trust Corporation, Essex Bank, Federal Reserve Bank of Richmond and State Corporation Commission Bureau of Financial Institutions, incorporated by reference to the Company’s Current Report on Form 8-K filed on April 27, 2011 (File No. 001-32590)
10.6	Employment Agreement between Community Bankers Acquisition Corp. and Bruce E. Thomas, incorporated by reference to the Company’s Current Report on Form 8-K/A filed on July 28, 2008 (File No. 001-32590)
10.7	Form of Letter Agreement, executed by Bruce E. Thomas with the Company, incorporated by reference to the Company’s Current Report on Form 8-K filed on December 23, 2008 (File No. 001-32590)
10.8	TransCommunity Financial Corporation 2001 Stock Option Plan, as amended and restated effective March 27, 2003, incorporated by reference to TransCommunity Financial Corporation’s Quarterly Report on Form 10-QSB filed on May 14, 2003 (File No. 000-33355)
10.9	Form of Non-Qualified Stock Option Agreement for Employee for TransCommunity Financial Corporation 2001 Stock Option Plan, incorporated by reference to TransCommunity Financial Corporation’s Annual Report on Form 10-KSB filed on March 30, 2005 (File No. 000-33355)
10.10	Form of Non-Qualified Stock Option Agreement for Director for TransCommunity Financial Corporation 2001 Stock Option Plan, incorporated by reference to TransCommunity Financial Corporation’s Annual Report on Form 10-KSB filed on March 30, 2005 (File No. 000-33355)
10.11	TransCommunity Financial Corporation 2007 Equity Compensation Plan, incorporated by reference to TransCommunity Financial Corporation’s Quarterly Report on Form 10-Q filed on August 13, 2007 (File No. 000-33355)

104

10.12	BOE Financial Services of Virginia, Inc. Stock Incentive Plan, incorporated by reference to Exhibit A of the Proxy Statement included in BOE Financial Services of Virginia, Inc.’s Registration Statement on Form S-4 filed on March 24, 2000 (File No. 333-33260)
10.13	First Amendment to BOE Financial Services of Virginia, Inc.’s Stock Incentive Plan, incorporated by reference to BOE Financial Services of Virginia, Inc.’s Registration Statement on Form S-8 filed on November 8, 2000 (File No. 333-49538)
10.14	BOE Financial Services of Virginia, Inc. Stock Option Plan for Outside Directors, incorporated by reference to Exhibit A of the Proxy Statement included in BOE Financial Services of Virginia, Inc.’s Registration Statement on Form S-4 filed on March 24, 2000 (File No. 333-33260)
10.15	First Amendment to BOE Financial Services of Virginia, Inc. Stock Option Plan for Outside Directors, incorporated by reference to BOE Financial Services of Virginia, Inc.’s Registration Statement on Form S-8 filed on November 8, 2000 (File No. 333-49538)
10.16	Community Bankers Trust Corporation 2009 Stock Incentive Plan, incorporated by reference to the Company’s Current Report on Form 8-K filed on June 24, 2009 (File No. 001-32590)
10.17	Form of Non-Qualified Stock Option Agreement for Community Bankers Trust Corporation 2009 Stock Incentive Plan, incorporated by reference to the Company’s Annual Report on Form 10-K filed on March 30, 2012 (File No. 001-32590)
14.1	Code of Business Conduct and Ethics, incorporated by reference to the Company’s Current Report on Form 8-K filed on October 26, 2011 (File No. 001-32590)
21.1	Subsidiaries of Community Bankers Trust Corporation*
23.1	Consent of Independent Registered Public Accounting Firm*
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*
99.1	IFR Section 30.15 – Certification for Years Following First Fiscal Year (Principal Executive Officer)*
99.2	IFR Section 30.15 – Certification for Years Following First Fiscal Year (Principal Financial Officer)*
101	Interactive Data File with respect to the following materials from the Company’s Annual Report on Form 10-K for the period ended December 31, 2013, formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statement of Comprehensive (Loss) Income, (iv) the Consolidated Statements of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements*

* Filed herewith.

(b) Exhibits. See Item 15(a)3. above

(c) Financial Statement Schedules. See Item 15(a)2. above

105

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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
By:	/s/ Rex L. Smith, III
	Rex L. Smith, III
	President and Chief Executive Officer

Date: March 14, 2014

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ Rex L. Smith, III	President and Chief Executive Officer	March 14, 2014
Rex L. Smith, III	and Director
	(principal executive officer)
/s/ Bruce E. Thomas	Executive Vice President and	March 14, 2014
Bruce E. Thomas	Chief Financial Officer
	(principal financial officer)
/s/ Laureen D. Trice	Senior Vice President	March 14, 2014
Laureen D. Trice	and Controller
	(principal accounting officer)
/s/ John C. Watkins	Chairman of the Board	March 14, 2014
John C. Watkins
/s/ Richard F. Bozard	Director	March 14, 2014
Richard F. Bozard
/s/ Alexander F. Dillard, Jr.	Director	March 14, 2014
Alexander F. Dillard, Jr.
/s/ Glenn J. Dozier	Director	March 14, 2014
Glenn J. Dozier
/s/ P. Emerson Hughes, Jr.	Director	March 14, 2014
P. Emerson Hughes, Jr.

106

Signature	Title	Date
/s/ Troy A. Peery, Jr.	Director	March 14, 2014
Troy A. Peery, Jr.
/s/ Eugene S. Putnam, Jr.	Director	March 14, 2014
Eugene S. Putnam, Jr.
/s/ S. Waite Rawls III	Director	March 14, 2014
S. Waite Rawls III
/s/ Robin Traywick Williams	Director	March 14, 2014
Robin Traywick Williams

107

EX-21.1

Exhibit 21.1

Subsidiaries of Community Bankers Trust Corporation

Name of Subsidiary	State of Organization
BOE Statutory Trust I	Delaware
Essex Bank	Virginia
— Essex Services, Inc.	Virginia

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors

Community Bankers Trust Corporation

Glen Allen, Virginia

We consent to the incorporation by reference in Registration Statement of Community Bankers Trust Corporation and Subsidiary relating to the Community Bankers Trust Corporation 2009 Stock Incentive Plan on Form S-8 (No. 333-173418) of our reports dated March 14, 2014, relating to our audits of the consolidated financial statements and internal control over financial reporting, which appear in this Annual Report on Form 10-K of Community Bankers Trust Corporation and Subsidiary for the year ended December 31, 2013.

/s/ Elliott Davis, LLC

Richmond, Virginia

March 14, 2014

EX-31.1

Exhibit 31.1

CERTIFICATIONS

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

1. I have reviewed this Annual Report on Form 10-K for the year ended December 31, 2013 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 15d-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

Date: March 14, 2014

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Bruce E. Thomas, certify that:

1. I have reviewed this Annual Report on Form 10-K for the year ended December 31, 2013 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 15d-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

Date: March 14, 2014

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 Annual Report on Form 10-K for the year ended December 31, 2013 (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

/s/ Bruce E. Thomas

Bruce E. Thomas

Executive Vice President and Chief Financial Officer

Date: March 14, 2014

EX-99.1

Exhibit 99.1

IFR Section 30.15 – Certification for Years following First Fiscal Year

(Principal Executive Officer)

COMMUNITY BANKERS TRUST CORPORATION

UST #113

I, Rex L. Smith, III, the President and Chief Executive Officer of Community Bankers Trust Corporation (the “Company”), certify, based on my knowledge, that:

(i) The Company’s Compensation Committee has discussed, reviewed and evaluated with senior risk officers at least every six months during the most recently completed fiscal year, all of which was a TARP period, senior executive officer (SEO) compensation plans and employee compensation plans and the risks these plans pose to the Company;

(ii) During the discussions, reviews and evaluations described above, the Company’s Compensation Committee did not identify, and thus did not need to take steps to limit, during the most recently completed fiscal year any features of the SEO compensation plans that could lead SEOs to take unnecessary and excessive risks that could threaten the value of the Company, and the Company’s Compensation Committee did not identify any features of the employee compensation plans that pose risks to the Company, and thus did not need to take steps to limit those features to ensure that the Company is not unnecessarily exposed to risks;

(iii) The Company’s Compensation Committee has reviewed, at least every six months during the most recently completed fiscal year, the terms of each employee compensation plan and identified any features of the plan that could encourage the manipulation of reported earnings of the Company to enhance the compensation of an employee, and has limited any such features;

(iv) The Company’s Compensation Committee will certify to the reviews of the SEO compensation plans and employee compensation plans required under paragraphs (i) and (iii) above;

(v) The Company’s Compensation Committee will provide a narrative description of how it limited during any part of the most recently completed fiscal year the features in:

(A) SEO compensation plans that could lead SEOs to take unnecessary and excessive risks that could threaten the value of the Company;

(B) Employee compensation plans that unnecessarily expose the Company to risks; and

(C) Employee compensation plans that could encourage the manipulation of reported earnings of the Company to enhance the compensation of an employee;

(vi) The Company has required that bonus payments to SEOs or any of the next twenty most highly compensated employees, as defined in the regulations and guidance established under Section 111 of EESA (bonus payments), be subject to a recovery or “clawback” provision during the most recently completed fiscal year if the bonus payments were based on materially inaccurate financial statements or any other materially inaccurate performance metric criteria;

(vii) The Company has prohibited any golden parachute payment, as defined in the regulations and guidance established under Section 111 of EESA, to an SEO or any of the next five most highly compensated employees during the most recently completed fiscal year;

(viii) The Company has limited bonus payments to its applicable employees in accordance with Section 111 of EESA and the regulations and guidance established thereunder during the most recently completed fiscal year;

(ix) The Company and its employees have complied with the excessive or luxury expenditures policy, as defined in the regulations and guidance established under Section 111 of EESA, during the most recently completed fiscal year; and any expenses that, pursuant to the policy, required approval of the board of directors, a committee of the board of directors, an SEO, or an executive officer with a similar level of responsibility were properly approved;

(x) The Company will permit a non-binding shareholder resolution in compliance with applicable federal securities rules and regulations on the disclosures provided under the federal securities laws related to SEO compensation paid or accrued during the most recently completed fiscal year;

(xi) The Company will disclose the amount, nature, and justification for the offering, during the most recently completed fiscal year, of any perquisites, as defined in the regulations and guidance established under Section 111 of EESA, whose total value exceeds $25,000 for the employee who is subject to the bonus payment limitations identified in paragraph (viii);

(xii) The Company will disclose whether the Company, the Company’s board of directors, or the Company’s Compensation Committee has engaged during the most recently completed fiscal year a compensation consultant; and the services the compensation consultant or any affiliate of the compensation consultant provided during this period;

(xiii) The Company has prohibited the payment of any gross-ups, as defined in the regulations and guidance established under Section 111 of EESA, to the SEOs and the next twenty most highly compensated employees during the most recently completed fiscal year;

(xiv) The Company has substantially complied with all other requirements related to employee compensation that are provided in the agreement between the Company and Treasury, including any amendments;

(xv) The Company has submitted to Treasury a complete and accurate list of the SEOs and the twenty next most highly compensated employees for the current fiscal year, with the non-SEOs ranked in descending order of level of annual compensation, and with the name, title, and employer of each SEO and most highly compensated employee identified; and

(xvi) I understand that a knowing and willful false or fraudulent statement made in connection with this certification may be punished by fine, imprisonment, or both. (See, for example, 18 USC 1001.)

Date: March 14, 2014	By:	/s/ Rex L. Smith, III
		Rex L. Smith, III
		President and Chief Executive Officer

EX-99.2

Exhibit 99.2

IFR Section 30.15 – Certification for Years following First Fiscal Year

(Principal Financial Officer)

COMMUNITY BANKERS TRUST CORPORATION

UST #113

I, Bruce E. Thomas, the Executive Vice President and Chief Financial Officer of Community Bankers Trust Corporation (the “Company”), certify, based on my knowledge, that:

(i) The Company’s Compensation Committee has discussed, reviewed and evaluated with senior risk officers at least every six months during the most recently completed fiscal year, all of which was a TARP period, senior executive officer (SEO) compensation plans and employee compensation plans and the risks these plans pose to the Company;

(ii) During the discussions, reviews and evaluations described above, the Company’s Compensation Committee did not identify, and thus did not need to take steps to limit, during the most recently completed fiscal year any features of the SEO compensation plans that could lead SEOs to take unnecessary and excessive risks that could threaten the value of the Company, and the Company’s Compensation Committee did not identify any features of the employee compensation plans that pose risks to the Company, and thus did not need to take steps to limit those features to ensure that the Company is not unnecessarily exposed to risks;

(iii) The Company’s Compensation Committee has reviewed, at least every six months during the most recently completed fiscal year, the terms of each employee compensation plan and identified any features of the plan that could encourage the manipulation of reported earnings of the Company to enhance the compensation of an employee, and has limited any such features;

(iv) The Company’s Compensation Committee will certify to the reviews of the SEO compensation plans and employee compensation plans required under paragraphs (i) and (iii) above;

(v) The Company’s Compensation Committee will provide a narrative description of how it limited during any part of the most recently completed fiscal year the features in:

(A) SEO compensation plans that could lead SEOs to take unnecessary and excessive risks that could threaten the value of the Company;

(B) Employee compensation plans that unnecessarily expose the Company to risks; and

(C) Employee compensation plans that could encourage the manipulation of reported earnings of the Company to enhance the compensation of an employee;

(vi) The Company has required that bonus payments to SEOs or any of the next twenty most highly compensated employees, as defined in the regulations and guidance established under Section 111 of EESA (bonus payments), be subject to a recovery or “clawback” provision during the most recently completed fiscal year if the bonus payments were based on materially inaccurate financial statements or any other materially inaccurate performance metric criteria;

(vii) The Company has prohibited any golden parachute payment, as defined in the regulations and guidance established under Section 111 of EESA, to an SEO or any of the next five most highly compensated employees during the most recently completed fiscal year;

(viii) The Company has limited bonus payments to its applicable employees in accordance with Section 111 of EESA and the regulations and guidance established thereunder during the most recently completed fiscal year;

(ix) The Company and its employees have complied with the excessive or luxury expenditures policy, as defined in the regulations and guidance established under Section 111 of EESA, during the most recently completed fiscal year; and any expenses that, pursuant to the policy, required approval of the board of directors, a committee of the board of directors, an SEO, or an executive officer with a similar level of responsibility were properly approved;

(x) The Company will permit a non-binding shareholder resolution in compliance with applicable federal securities rules and regulations on the disclosures provided under the federal securities laws related to SEO compensation paid or accrued during the most recently completed fiscal year;

(xi) The Company will disclose the amount, nature, and justification for the offering, during the most recently completed fiscal year, of any perquisites, as defined in the regulations and guidance established under Section 111 of EESA, whose total value exceeds $25,000 for the employee who is subject to the bonus payment limitations identified in paragraph (viii);

(xii) The Company will disclose whether the Company, the Company’s board of directors, or the Company’s Compensation Committee has engaged during the most recently completed fiscal year a compensation consultant; and the services the compensation consultant or any affiliate of the compensation consultant provided during this period;

(xiii) The Company has prohibited the payment of any gross-ups, as defined in the regulations and guidance established under Section 111 of EESA, to the SEOs and the next twenty most highly compensated employees during the most recently completed fiscal year;

(xiv) The Company has substantially complied with all other requirements related to employee compensation that are provided in the agreement between the Company and Treasury, including any amendments;

(xv) The Company has submitted to Treasury a complete and accurate list of the SEOs and the twenty next most highly compensated employees for the current fiscal year, with the non-SEOs ranked in descending order of level of annual compensation, and with the name, title, and employer of each SEO and most highly compensated employee identified; and

(xvi) I understand that a knowing and willful false or fraudulent statement made in connection with this certification may be punished by fine, imprisonment, or both. (See, for example, 18 USC 1001.)

Date: March 14, 2014	By:	/s/ Bruce E. Thomas
		Bruce E. Thomas
		Executive Vice President and Chief Financial Officer

XML

Loans Not Covered by FDIC Shared-Loss Agreements (Non-covered Loans) and Related Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

Summary of Non-Covered Loans

The Company’s non-covered loans at December 31, 2013 and 2012 were comprised of the following (dollars in thousands):

	December 31, 2013						December 31, 2012
	Amount			% of Non-Covered Loans			Amount			% of Non-Covered Loans
Mortgage loans on real estate:
Residential 1-4 family	$	141,974			23.81	%	$	135,420			23.53	%
Commercial		239,389			40.14			246,521			42.83
Construction and land development		54,745			9.18			61,127			10.62
Second mortgages		6,369			1.07			7,230			1.26
Multifamily		35,774			6.00			28,683			4.98
Agriculture		9,267			1.55			10,359			1.79
Total real estate loans		487,518			81.75			489,340			85.01
Commercial loans		101,761			17.07			77,835			13.52
Consumer installment loans		5,623			0.94			6,929			1.20
All other loans		1,435			0.24			1,526			0.27
Gross loans		596,337			100.00	%		575,630			100.00	%
Less unearned income on loans		(164	)					(148	)
Non-covered loans, net of unearned income	$	596,173					$	575,482

Summary of Information Related to Impaired Loans

The following table summarizes information related to impaired loans as of December 31, 2013 (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	$	3,485	$	3,739	$	881
Commercial		920		1,091		150
Construction and land development		4,148		5,298		508
Second mortgages		225		226		40
Multifamily		—		—		—
Agriculture		—		—		—
Total real estate loans		8,778		10,354		1,579
Commercial loans		127		794		16
Consumer installment loans		49		51		9
All other loans		—		—		—
Subtotal impaired loans with valuation allowance	$	8,954	$	11,199	$	1,604
With no related allowance recorded:
Mortgage loans on real estate:
Residential 1-4 family	$	1,189	$	1,228	$	—
Commercial		1,714		1,969		—
Construction and land development		1,734		4,335		—
Second mortgages		—		—		—
Multifamily		—		—		—
Agriculture		204		222		—
Total real estate loans		4,841		7,754		—
Commercial loans		—		—		—
Consumer installment loans		6		6		—
All other loans		—		—		—
Subtotal impaired loans without valuation allowance	$	4,847	$	7,760	$	—
Total:
Mortgage loans on real estate:
Residential 1-4 family	$	4,674	$	4,967	$	881
Commercial		2,634		3,060		150
Construction and land development		5,882		9,633		508
Second mortgages		225		226		40
Multifamily		—		—		—
Agriculture		204		222		—
Total real estate loans		13,619		18,108		1,579
Commercial loans		127		794		16
Consumer installment loans		55		57		9
All other loans		—		—		—
Total impaired loans	$	13,801	$	18,959	$	1,604

(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, 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	$	3,838	$	4,021	$	897
Commercial		2,741		2,827		725
Construction and land development		7,412		10,355		850
Second mortgages		124		170		22
Multifamily		—		—		—
Agriculture		250		580		20
Total real estate loans		14,365		17,953		2,514
Commercial loans		509		582		121
Consumer installment loans		78		79		21
All other loans		—		—		—
Subtotal impaired loans with valuation allowance	$	14,952	$	18,614	$	2,656
With no related allowance recorded:
Mortgage loans on real estate:
Residential 1-4 family	$	2,702	$	3,094	$	—
Commercial		3,076		3,281		—
Construction and land development		1,578		1,961		—
Second mortgages		48		48		—
Multifamily		—		—		—
Agriculture		—		—		—
Total real estate loans		7,404		8,384		—
Commercial loans		—		183		—
Consumer installment loans		9		9		—
All other loans		—		—		—
Subtotal impaired loans without valuation allowance	$	7,413	$	8,576	$	—
Total:
Mortgage loans on real estate:
Residential 1-4 family	$	6,540	$	7,115	$	897
Commercial		5,817		6,108		725
Construction and land development		8,990		12,316		850
Second mortgages		172		218		22
Multifamily		—		—		—
Agriculture		250		580		20
Total real estate loans		21,769		26,337		2,514
Commercial loans		509		765		121
Consumer installment loans		87		88		21
All other loans		—		—		—
Total impaired loans	$	22,365	$	27,190	$	2,656

(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.

Summary of Financial Receivable Impaired Average Recorded Investment

The following table summarizes the average recorded investment of impaired loans for the years ended December 31, 2013, 2012, and 2011 (dollars in thousands):

	Average Recorded Investment
	2013		2012		2011
Mortgage loans on real estate:
Residential 1-4 family	$	5,607	$	6,770	$	8,731
Commercial		4,225		10,505		12,212
Construction and land development		7,436		10,602		21,345
Second mortgages		198		184		263
Multifamily		—		—		—
Agriculture		227		93		100
Total real estate loans		17,693		28,154		42,651
Commercial loans		318		773		1,704
Consumer installment loans		72		137		101
All other loans		—		—		—
Total impaired loans	$	18,083	$	29,064	$	44,456

Summarizes Non-Accrual Loans by Category

The following table presents non-covered nonaccrual loans by category (dollars in thousands):

	December 31
	2013		2012
Mortgage loans on real estate:
Residential 1-4 family	$	4,229	$	5,562
Commercial		1,382		5,818
Construction and land development		5,882		8,815
Second mortgages		225		141
Multifamily		—		—
Agriculture		205		250
Total real estate loans		11,923		20,586
Commercial loans		127		385
Consumer installment loans		55		77
All other loans		—		—
Total loans	$	12,105	$	21,048

Reconciliation of Impaired Loans to Nonaccrual Loans

A reconciliation of impaired loans to nonaccrual loans at December 31, 2013 and 2012 is set forth in the table below (dollars in thousands):

	December 31
	2013		2012
Nonaccruals	$	12,105	$	21,048
Trouble debt restructure and still accruing		1,696		847
Special mention		—		299
Substandard and still accruing		—		171
Total impaired	$	13,801	$	22,365

Age Analysis of Past Due Status of Non-Covered Loans

The following tables present an age analysis of past due status of non-covered loans by category for the years ended December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013
	30-89 Days Past Due		90 Days Past Due		Total Past Due		Current		Total Loans Receivable		Recorded Investment 90 Days and Accruing
Mortgage loans on real estate:
Residential 1-4 family	$	1,455	$	4,229	$	5,684	$	136,290	$	141,974	$	—
Commercial		—		1,382		1,382		238,007		239,389		—
Construction and land development		242		5,882		6,124		48,621		54,745		—
Second mortgages		—		225		225		6,144		6,369		—
Multifamily		—		—		—		35,774		35,774		—
Agriculture		—		205		205		9,062		9,267		—
Total real estate loans		1,697		11,923		13,620		473,898		487,518		—
Commercial loans		115		127		242		101,519		101,761		—
Consumer installment loans		58		55		113		5,510		5,623		—
All other loans		—		—		—		1,435		1,435		—
Total loans	$	1,870	$	12,105	$	13,975	$	582,362	$	596,337	$	—

	December 31, 2012
	30-89 Days Past Due		90 Days Past Due		Total Past Due		Current		Total Loans Receivable		Recorded Investment 90 Days and Accruing
Mortgage loans on real estate:
Residential 1-4 family	$	1,433	$	5,797	$	7,230	$	128,190	$	135,420	$	235
Commercial		—		5,818		5,818		240,703		246,521		—
Construction and land development		298		9,089		9,387		51,740		61,127		274
Second mortgages		—		141		141		7,089		7,230		—
Multifamily		—		—		—		28,683		28,683		—
Agriculture		—		250		250		10,109		10,359		—
Total real estate loans		1,731		21,095		22,826		466,514		489,340		509
Commercial loans		85		385		470		77,365		77,835		—
Consumer installment loans		40		77		117		6,812		6,929		—
All other loans		—		—		—		1,526		1,526		—
Total loans	$	1,856	$	21,557	$	23,413	$	552,217	$	575,630	$	509

Allowance for Loan Losses on Non-Covered Loan by Loan Category

Activity in the allowance for loan losses on non-covered loans for the years ended December 31, 2013, 2012 and 2011 is presented in the following tables (dollars in thousands):

	December 31, 2012		Provision Allocation			Charge offs			Recoveries		December 31, 2013
Mortgage loans on real estate:
Residential 1-4 family	$	3,985	$	332		$	(432	)	$	56	$	3,941
Commercial		2,482		1,269			(1,580	)		20		2,191
Construction and land development		3,773		(1,378	)		(877	)		694		2,212
Second mortgages		142		9			(105	)		48		94
Multifamily		303		(170	)		—			—		133
Agriculture		61		(20	)		(5	)		39		75
Total real estate loans		10,746		42			(2,999	)		857		8,646
Commercial loans		1,961		(44	)		(325	)		82		1,674
Consumer installment loans		195		(6	)		(167	)		76		98
All other loans		18		8			—			—		26
Total loans	$	12,920	$	—		$	(3,491	)	$	1,015	$	10,444

	December 31, 2011		Provision Allocation			Charge offs			Recoveries		December 31, 2012
Mortgage loans on real estate:
Residential 1-4 family	$	3,451	$	2,283		$	(1,786	)	$	37	$	3,985
Commercial		3,048		15			(654	)		73		2,482
Construction and land development		5,729		(1,539	)		(2,058	)		1,641		3,773
Second mortgages		296		(165	)		(45	)		56		142
Multifamily		224		79			—			—		303
Agriculture		25		75			(39	)		—		61
Total real estate loans		12,773		748			(4,582	)		1,807		10,746
Commercial loans		1,810		604			(695	)		242		1,961
Consumer installment loans		241		91			(220	)		83		195
All other loans		11		7			—			—		18
Total loans	$	14,835	$	1,450		$	(5,497	)	$	2,132	$	12,920

	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 December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013
	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	$	923	$	3,018	$	3,941	$	6,708	$	135,266	$	141,974
Commercial		200		1,991		2,191		8,016		231,373		239,389
Construction and land development		651		1,561		2,212		8,619		46,126		54,745
Second mortgages		42		52		94		254		6,115		6,369
Multifamily		—		133		133		—		35,774		35,774
Agriculture		—		75		75		205		9,062		9,267
Total real estate loans		1,816		6,830		8,646		23,802		463,716		487,518
Commercial loans		18		1,656		1,674		192		101,569		101,761
Consumer installment loans		9		89		98		57		5,566		5,623
All other loans		—		26		26		—		1,435		1,435
Total loans	$	1,843	$	8,601	$	10,444	$	24,051	$	572,286	$	596,337

	December 31, 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	$	1,003	$	2,982	$	3,985	$	10,340	$	125,080	$	135,420
Commercial		864		1,618		2,482		15,636		230,885		246,521
Construction and land development		1,306		2,467		3,773		14,173		46,954		61,127
Second mortgages		29		113		142		234		6,996		7,230
Multifamily		—		303		303		—		28,683		28,683
Agriculture		21		40		61		250		10,109		10,359
Total real estate loans		3,223		7,523		10,746		40,633		448,707		489,340
Commercial loans		125		1,836		1,961		605		77,230		77,835
Consumer installment loans		22		173		195		92		6,837		6,929
All other loans		—		18		18		—		1,526		1,526
Total loans	$	3,370	$	9,550	$	12,920	$	41,330	$	534,300	$	575,630

⁽¹⁾  The category “Individually Evaluated for Impairment” includes loans individually evaluated for impairment and determined not to be impaired. These loans totaled $10.0 million and $19.0 million at December 31, 2013 and 2012, respectively. The allowance for loans losses allocated to these loans was $239,000 and $714,000 at December 31, 2013 and 2012, respectively.

Non-Covered Loans by Credit Quality Indicator

The following tables present the composition of non-covered loans by credit quality indicator at December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013
	Pass		Special Mention		Substandard		Doubtful		Total
Mortgage loans on real estate:
Residential 1-4 family	$	127,074	$	8,193	$	6,707	$	—	$	141,974
Commercial		221,486		11,135		6,768		—		239,389
Construction and land development		43,949		2,178		8,618		—		54,745
Second mortgages		5,687		428		254		—		6,369
Multifamily		35,774		—		—		—		35,774
Agriculture		9,063		—		204		—		9,267
Total real estate loans		443,033		21,934		22,551		—		487,518
Commercial loans		98,614		2,955		192		—		101,761
Consumer installment loans		5,344		222		57		—		5,623
All other loans		1,435		—		—		—		1,435
Total loans	$	548,426	$	25,111	$	22,800	$	—	$	596,337

	December 31, 2012
	Pass		Special Mention		Substandard		Doubtful		Total
Mortgage loans on real estate:
Residential 1-4 family	$	118,931	$	6,496	$	9,993	$	—	$	135,420
Commercial		209,347		21,540		15,478		156		246,521
Construction and land development		36,261		10,954		13,912		—		61,127
Second mortgages		6,519		477		234		—		7,230
Multifamily		27,514		1,169		—		—		28,683
Agriculture		10,109		—		250		—		10,359
Total real estate loans		408,681		40,636		39,867		156		489,340
Commercial loans		76,148		1,205		482		—		77,835
Consumer installment loans		6,617		220		92		—		6,929
All other loans		1,526		—		—		—		1,526
Total loans	$	492,972	$	42,061	$	40,441	$	156	$	575,630

Loans Modified as TDRs

The following table presents information relating to loans modified as TDRs during the year ended December 31, 2012 (dollars in thousands):

	Year ended December 31, 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
Total loans		6	$	5,590	$	5,388

XML

Branch Sale - Summary of Loans Related to Loan Sale (Detail) (Pinnacle Bank [Member], USD $) In Thousands, unless otherwise specified	Oct. 25, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross loans	$ 24,311
Net deferred costs	34
Total loans	24,345
Mortgage Loans on Real Estate [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross loans	22,740
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross loans	2,240
Mortgage Loans on Real Estate [Member] | Commercial [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross loans	15,762
Mortgage Loans on Real Estate [Member] | Construction and Land Development [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross loans	2,895
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross loans	41
Mortgage Loans on Real Estate [Member] | Multifamily [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross loans	1,802
Mortgage Loans on Real Estate [Member] | Agriculture [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross loans
Commercial Loans [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross loans	1,147
Consumer Installment Loans [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross loans	424
All Other Loans [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross loans

XML

Stock Option Plans - Fair Value of Each Option Granted is Estimated on the Date of Grant (Detail) (Stock Option [Member])	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	50.00%	50.00%	50.00%
Expected dividend	2.00%		3.00%
Expected term (years)	6 years 3 months	6 years 3 months	5 years 6 months
Risk free rate	1.38%		1.12%
Risk free rate, Minimum		0.77%
Risk free rate, Maximum		1.31%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend		2.00%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend		3.00%

XML

Fair Values of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Assets and Liabilities Recorded at Fair Value on Recurring Basis

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

	December 31, 2013
	Total		Level 1		Level 2		Level 3
Investment securities available for sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	98,987	$	94,935	$	4,052	$	—
U.S. Gov’t sponsored agencies		486		—		486		—
State, county, and municipal		134,096		2,482		131,614		—
Corporate and other bonds		6,349		—		6,349		—
Mortgage backed – U.S. Gov’t agencies		3,439		—		3,439		—
Mortgage backed – U.S. Gov’t sponsored agencies		22,420		2,531		19,889		—
Total investment securities available for sale		265,777		99,948		165,829		—
Loans held for sale		100		—		100		—
Total assets at fair value	$	265,877	$	99,948	$	165,929	$	—
Total liabilities at fair value	$	—	$	—	$	—	$	—

	December 31, 2012
	Total		Level 1		Level 2		Level 3
Investment securities available for sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	153,277	$	153,277	$	—	$	—
U.S. Gov’t sponsored agencies		503		—		503		—
State, county and municipal		117,596		6,742		110,854		—
Corporate and other bonds		7,618		1,009		6,609		—
Mortgage backed – U.S. Gov’t agencies		15,560		—		15,560		—
Mortgage backed – U.S. Gov’t sponsored agencies		14,524		—		14,524		—
Total investment securities available for sale		309,078		161,028		148,050		—
Loans held for sale		1,266		—		1,266		—
Total assets at fair value	$	310,344	$	161,028	$	149,316	$	—
Total liabilities at fair value	$	—	$	—	$	—	$	—

Assets and Liabilities Measured at Fair Value on Nonrecurring Basis

The following table presents assets measured at fair value on a nonrecurring basis for the periods ended December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013
	Total		Level 1		Level 2		Level 3
Impaired loans, non-covered	$	10,334	$	—	$	1,791	$	8,543
Other real estate owned (OREO), non-covered		6,244		—		—		6,244
Other real estate owned (OREO), covered		2,692		—		—		2,692
Total assets at fair value	$	19,270	$	—	$	1,791	$	17,479
Total liabilities at fair value	$	—	$	—	$	—	$	—

	December 31, 2012
	Total		Level 1		Level 2		Level 3
Impaired loans, non-covered	$	15,552	$	—	$	4,039	$	11,513
Other real estate owned (OREO), non-covered		10,793		—		—		10,793
Other real estate owned (OREO), covered		3,370		—		—		3,370
Total assets at fair value	$	29,715	$	—	$	4,039	$	25,676
Total liabilities at fair value	$	—	$	—	$	—	$	—

Summary of Fair Value of Financial Instruments

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.

	December 31, 2013
(dollars in thousands)	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Securities held to maturity	$	28,563	$	30,305	$	—	$	30,305	$	—
Loans, non-covered		585,729		591,081		—		582,538		8,543
Loans, covered		72,791		88,693		—		—		88,693
FDIC indemnification asset		25,409		10,557		—		—		10,557
Financial liabilities:
Interest bearing deposits		822,209		824,895		—		824,895		—
Long-term borrowings		81,249		81,014		—		81,014		—

	December 31, 2012
(dollars in thousands)	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Securities held to maturity	$	42,283	$	45,228	$	—	$	45,228	$	—
Loans, non-covered		562,562		569,188		—		557,675		11,513
Loans, covered		84,153		96,024		—		—		96,024
FDIC indemnification asset		33,837		17,477		—		—		17,477
Financial liabilities:
Interest bearing deposits		896,340		872,920		—		872,920		—
Long-term borrowings		53,952		54,569		—		54,569		—

XML

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

Compensation And Retirement Disclosure [Abstract]

Schedule of Defined Benefit Plans Change in Benefit Obligation

The following table provides a reconciliation of the changes in the plan’s benefit obligations and fair value of assets for the year ended December 31, 2013 and 2012 (dollars in thousands):

	2013			2012
Change in Benefit Obligation
Benefit obligation, beginning of year	$	5,791		$	5,622
Service cost		—			—
Interest cost		224			250
Actuarial gain/(loss)		(749	)		425
Benefits paid		(649	)		(488	)
Change in obligation due to plan amendment		68			—
Settlement (gain)/loss		(23	)		(18	)
Benefit obligation, ending	$	4,662		$	5,791

Schedule of Defined Benefit Plans Change in Plan Assets

The following table provides a reconciliation of the changes in the plan’s benefit obligations and fair value of assets for the year ended December 31, 2013 and 2012 (dollars in thousands):

Change in Plan Assets
Fair value of plan assets, beginning of year	$	5,255		$	3,157
Actual return on plan assets		879			586
Employer contributions		—			2,000
Benefits paid		(649	)		(488	)
Fair value of plan assets, ending	$	5,485		$	5,255
Funded Status	$	823		$	(536	)

Schedule of Defined Benefit Plans Amount Recognized in Financial Statement

The following table provides a reconciliation of the changes in the plan’s benefit obligations and fair value of assets for the year ended December 31, 2013 and 2012 (dollars in thousands):

Amounts Recognized in the Balance Sheet
Other assets	$	823		$	—
Other liabilities		—			536
Amounts Recognized in Accumulated Other Comprehensive Income
Net loss	$	168		$	1,630
Prior service cost		68			—
Net obligation at transition		—			—
Deferred tax		(81	)		(555	)
Total amount recognized	$	155		$	1,075

Components of Net Periodic Benefit Cost for Plan

The following table provides the components of net periodic benefit cost for the plan for the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):

	2013			2012			2011
Components of Net Periodic Benefit Cost
Interest cost	$	224		$	250		$	260
Expected return on plan assets		(405	)		(408	)		(301	)
Recognized net loss due to settlement		147			105			3
Recognized net actuarial loss		69			66			—
Net periodic (benefit) cost	$	35		$	13		$	(38	)
Total recognized in net periodic benefit cost and accumulated other comprehensive (loss) income	$	(1,359	)	$	71		$	1,534

Weighted-Average Assumptions Used in the Measurement of the Company's Benefit Obligation and Net Periodic Benefit Cost

The weighted-average assumptions used in the measurement of the Company’s benefit obligation and net periodic benefit cost are shown in the following table:

	2013			2012			2011
Discount rate used for net periodic pension cost		4.00	%		4.50	%		5.50	%
Discount rate used for disclosure		5.00	%		4.00	%		4.50	%
Expected return on plan assets		8.00	%		8.00	%		8.00	%

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income

Other changes in plan assets and benefit obligations recognized in other comprehensive income during 2013 are as follows (dollars in thousands):

Net (gain)/loss	$	(1,462	)
Prior service cost		68
Total amount recognized	$	(1,394	)

Estimated Amounts that will Amortize from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost

The estimated amounts that will amortize from accumulated other comprehensive income into net periodic benefit cost in 2014 are as follows (dollars in thousands):

Prior service cost	$	5
Net loss due to settlement		11
Total amount recognized	$	16

Pension Plan's Weighted-Average Asset Allocations by Asset Category

The pension plan’s weighted-average asset allocations as of December 31, 2013 and 2012 by asset category were as follows:

	2013			2012
Asset Category
Mutual funds – fixed income		40.00	%		39.00	%
Mutual funds – equity		60.00			61.00
Cash and equivalents		0.00			0.00
Total		100.00	%		100.00	%

Fair Value of Plan Assets

The following table presents the fair value of plan assets as of December 31, 2013 and 2012 (dollars in thousands):

	Assets measured at Fair Value (Level 1)
	December 31, 2013		December 31, 2012
Cash	$	6	$	5
Mutual funds:
Fixed income funds		2,178		2,033
International funds		828		418
Large cap funds		844		1,014
Mid cap funds		570		593
Small cap funds		201		258
Stock fund		857		932
	$	5,484	$	5,253

Estimated Future Contributions and Benefit Payments, which Reflect Expected Future Service

Estimated future contributions and benefit payments, which reflect expected future service, as appropriate, are as follows (dollars in thousands):

Expected Employer Contributions
2014	$	—
Expected Benefit Payments
2014	$	421
2015		744
2016		227
2017		86
2018		394
2019-2023		1,159

XML

Dividend Limitations on Affiliate Bank - Additional Information (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Dividend Limitations On Affiliate Bank [Abstract]
Unrestricted funds that could be transferred from banking subsidiary to parent corporation	$ 3,500,000	$ 787,000.0

XML

Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) and Related Allowance for Loan Losses - Summarizes Non-Accrual Loans by Category (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	$ 12,105	$ 21,048
Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	11,923	20,586
Commercial Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	127	385
Consumer Installment Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	55	77
All Other Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans
Residential 1-4 Family [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	4,229	5,562
Commercial [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	1,382	5,818
Construction and Land Development [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	5,882	8,815
Second Mortgages [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	225	141
Multifamily [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans
Agriculture [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	$ 205	$ 250

XML

Minimum Regulatory Capital Requirements - Summary of the Company's and the Banks Actual Capital Amounts and Ratios (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Parent Company [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital to risk weighted assets, Actual Amount	$ 113,805	$ 112,463
Total Capital to risk weighted assets, Actual Ratio	16.82%	16.99%
Total Capital to risk weighted assets, Required for Capital Adequacy Purposes Amount	54,124	52,969
Total Capital to risk weighted assets, Required for Capital Adequacy Purposes Ratio	8.00%	8.00%
Tier 1 Capital to risk weighted assets, Actual Amount	105,672	104,521
Tier 1 Capital to risk weighted assets, Actual Ratio	15.62%	15.79%
Tier 1 Capital to risk weighted assets, Required for Capital Adequacy Purposes Amount	27,062	26,485
Tier 1 Capital to risk weighted assets, Required for Capital Adequacy Purposes Ratio	4.00%	4.00%
Tier 1 Capital to adjusted average total assets, Actual Amount	105,672	104,521
Tier 1 Capital to adjusted average total assets, Actual Ratio	9.52%	9.41%
Tier 1 Capital to adjusted average total assets, Required for Capital Adequacy Purposes Amount	44,396	44,444
Tier 1 Capital to adjusted average total assets, Required for Capital Adequacy Purposes Ratio	4.00%	4.00%
Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital to risk weighted assets, Actual Amount	113,624	111,687
Total Capital to risk weighted assets, Actual Ratio	16.79%	16.87%
Total Capital to risk weighted assets, Required for Capital Adequacy Purposes Amount	54,132	52,971
Total Capital to risk weighted assets, Required for Capital Adequacy Purposes Ratio	8.00%	8.00%
Total Capital to risk weighted assets, Required in Order to be Well Capitalized Under Prompt Corrective Action Amount	67,666	66,214
Total Capital to risk weighted assets, Required in Order to be Well Capitalized Under Prompt Corrective Action Ratio	10.00%	10.00%
Tier 1 Capital to risk weighted assets, Actual Amount	105,489	103,745
Tier 1 Capital to risk weighted assets, Actual Ratio	15.59%	15.67%
Tier 1 Capital to risk weighted assets, Required for Capital Adequacy Purposes Amount	27,066	26,486
Tier 1 Capital to risk weighted assets, Required for Capital Adequacy Purposes Ratio	4.00%	4.00%
Tier 1 Capital to risk weighted assets, Required in Order to be Well Capitalized Under Prompt Corrective Action Amount	40,599	39,728
Tier 1 Capital to risk weighted assets, Required in Order to be Well Capitalized Under Prompt Corrective Action Ratio	6.00%	6.00%
Tier 1 Capital to adjusted average total assets, Actual Amount	105,489	103,745
Tier 1 Capital to adjusted average total assets, Actual Ratio	9.50%	9.34%
Tier 1 Capital to adjusted average total assets, Required for Capital Adequacy Purposes Amount	44,402	44,449
Tier 1 Capital to adjusted average total assets, Required for Capital Adequacy Purposes Ratio	4.00%	4.00%
Tier 1 Capital to adjusted average total assets, Required in Order to be Well Capitalized Under Prompt Corrective Action Amount	$ 55,503	$ 55,561
Tier 1 Capital to adjusted average total assets, Required in Order to be Well Capitalized Under Prompt Corrective Action Ratio	5.00%	5.00%

XML

Lease Commitments (Tables)

12 Months Ended

Dec. 31, 2013

Leases [Abstract]

Summary of Non-Cancelable Operating Leases for Bank Premises that have Initial or Remaining Terms

The following table represents a summary of non-cancelable operating leases for bank premises that have initial or remaining terms in excess of one year as of December 31, 2013 (dollars in thousands):

2014	$	758
2015		694
2016		650
2017		597
2018		583
Thereafter		2,942
Total of future payments	$	6,224

XML

Loans Covered by FDIC Shared-loss Agreements (Covered Loans) and Related Allowance for Loan Losses - Additional Information (Detail) (Covered Loans [Member], USD $) In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans acquired	$ 198.3
Loans met criteria of ASC 310-30	49.1
Outstanding contractual balance of covered loans	117.0	137.2
Residential 1-4 Family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Remaining of loans acquired	$ 149.1

XML

Employee Benefit Plans - Components of Net Periodic Benefit Cost for Plan (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Components of Net Periodic Benefit Cost
Interest cost	$ 224	$ 250	$ 260
Expected return on plan assets	(405)	(408)	(301)
Recognized net loss due to settlement	147	105	3
Recognized net actuarial loss	69	66
Net periodic (benefit) cost	35	13	(38)
Total recognized in net periodic benefit cost and accumulated other comprehensive (loss) income	$ (1,359)	$ 71	$ 1,534

XML

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Tax Effects of Temporary Differences on the Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31 are as follows (dollars in thousands):

	2013		2012
Deferred tax assets:
Allowance for loan losses	$	3,715	$	4,557
Deferred compensation		633		514
Nonaccrual loan interest		931		847
Unrealized loss on available for sale securities		2,037		—
FAS 158 adjustment pension		81		554
Stock based compensation		205		165
Net operating loss carryforward		—		2,667
Alternative minimum tax credit		—		391
Depreciation		118		137
OREO		618		1,007
Other		146		395
	$	8,484	$	11,234
Deferred tax liabilities:
Accrued pension		355		359
Purchase accounting adjustment		2,257		4,089
Unrealized gain on available for sale securities		—		2,011
Other		56		37
	$	2,668	$	6,496
Net deferred tax asset	$	5,816	$	4,738

Allocation of the Income Tax Expense between Current and Deferred Portions

Allocation of the income tax expense between current and deferred portions is as follows (dollars in thousands):

	2013		2012		2011
Current tax provision	$	—	$	22	$	(907	)
Deferred tax expense (benefit)		2,497		2,126		967
Income tax expense (benefit)	$	2,497	$	2,148	$	60

Reconciliation of the Expected Income Tax Expense with the Reported Expense

The following is a reconciliation of the expected income tax expense with the reported expense for each year:

	2013			2012			2011
Statutory federal income tax rate		34.0	%		34.0	%		34.0	%
(Reduction) Increase in taxes resulting from:
Municipal interest		(2.6	)		(2.0	)		(21.8	)
Bank owned life insurance income		(3.0	)		(2.7	)		(6.2	)
Other, net		1.3			(1.5	)		(2.0	)
Effective tax rate		29.7	%		27.8	%		4.0	%

XML

Subsequent Events

12 Months Ended

Dec. 31, 2013

Subsequent Events [Abstract]

Subsequent Events

Note 26. Subsequent Events

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

XML

Loans Covered by FDIC Shared-Loss Agreements (Covered Loans) and Related Allowance for Loan Losses - Summary of Covered Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans covered by FDIC shared loss agreements	$ 73,275	$ 84,637
% of Covered Loans	100.00%	100.00%
Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans covered by FDIC shared loss agreements	73,275	84,636
% of Covered Loans	100.00%	99.99%
Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans covered by FDIC shared loss agreements
% of Covered Loans
Consumer Installment Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans covered by FDIC shared loss agreements		1
% of Covered Loans		0.01%
All Other Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans covered by FDIC shared loss agreements
% of Covered Loans
Residential 1-4 Family [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans covered by FDIC shared loss agreements	64,610	74,046
% of Covered Loans	88.18%	87.47%
Commercial [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans covered by FDIC shared loss agreements	1,389	1,986
% of Covered Loans	1.90%	2.35%
Construction and Land Development [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans covered by FDIC shared loss agreements	2,940	3,264
% of Covered Loans	4.01%	3.86%
Second Mortgages [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans covered by FDIC shared loss agreements	3,898	4,864
% of Covered Loans	5.32%	5.75%
Multifamily [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans covered by FDIC shared loss agreements	266	304
% of Covered Loans	0.36%	0.36%
Agriculture [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans covered by FDIC shared loss agreements	$ 172	$ 172
% of Covered Loans	0.23%	0.20%

XML

Related Party Transactions - Schedule of Activity of Direct and Indirect Loans (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Related Party Transactions [Abstract]
Balance, beginning of year	$ 3,115	$ 3,703
Principal additions	1,765	575
Repayments and reclassifications	(2,579)	(1,163)
Balance, end of year	$ 2,301	$ 3,115

XML

Fair Values of Assets and Liabilities - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value appraisal minimum period	12 months
Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Eligibility criteria of classified loans for appraisal by professional appraiser	$ 250,000

XML

Other Noninterest Expense - Summary of Other Noninterest Expense (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Other Non Interest Expenses [Abstract]
Bank franchise tax	$ 513	$ 466	$ 552
Telephone and internet line	699	777	789
Stationery, printing and supplies	453	504	654
Exam fees	529	569	776
Directors fees	413	422	530
Credit expense	707	948	1,008
Other expenses	2,247	1,863	1,903
Total other operating expenses	$ 5,561	$ 5,549	$ 6,212

XML

Loans Not Covered by FDIC Shared-loss Agreements (Non-covered Loans) and Related Allowance for Loan Losses - Allowance for Loan Losses on Non-Covered Loans by Loan Category (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended				12 Months Ended			12 Months Ended
	Dec. 31, 2012	Jun. 30, 2012	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2013 Non Covered Loans [Member]	Dec. 31, 2012 Non Covered Loans [Member]	Dec. 31, 2011 Non Covered Loans [Member]	Dec. 31, 2013 Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2012 Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2011 Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2013 Non Covered Loans [Member] Commercial Loans [Member]	Dec. 31, 2012 Non Covered Loans [Member] Commercial Loans [Member]	Dec. 31, 2011 Non Covered Loans [Member] Commercial Loans [Member]	Dec. 31, 2013 Non Covered Loans [Member] Consumer Installment Loans [Member]	Dec. 31, 2012 Non Covered Loans [Member] Consumer Installment Loans [Member]	Dec. 31, 2011 Non Covered Loans [Member] Consumer Installment Loans [Member]	Dec. 31, 2013 Non Covered Loans [Member] All Other Loans [Member]	Dec. 31, 2012 Non Covered Loans [Member] All Other Loans [Member]	Dec. 31, 2011 Non Covered Loans [Member] All Other Loans [Member]	Dec. 31, 2013 Residential 1-4 Family [Member] Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2012 Residential 1-4 Family [Member] Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2011 Residential 1-4 Family [Member] Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2013 Commercial [Member] Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2012 Commercial [Member] Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2011 Commercial [Member] Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2013 Construction and Land Development [Member] Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2012 Construction and Land Development [Member] Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2011 Construction and Land Development [Member] Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2013 Second Mortgages [Member] Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2012 Second Mortgages [Member] Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2011 Second Mortgages [Member] Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2013 Multifamily [Member] Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2012 Multifamily [Member] Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2011 Multifamily [Member] Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2013 Agriculture [Member] Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2012 Agriculture [Member] Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2011 Agriculture [Member] Non Covered Loans [Member] Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Allowance for loan losses, beginning balance							$ 10,444	$ 12,920	$ 14,835	$ 25,543	$ 10,746	$ 12,773	$ 22,520	$ 1,961	$ 1,810	$ 2,691	$ 195	$ 241	$ 257	$ 18	$ 11	$ 75	$ 3,985	$ 3,451	$ 6,262	$ 2,482	$ 3,048	$ 5,287	$ 3,773	$ 5,729	$ 10,039	$ 142	$ 296	$ 406	$ 303	$ 224	$ 260	$ 61	$ 25	$ 266
Provision Allocation	450	500	250	1,498	1,200	1,498			1,450	1,498	42	748	(1,032)	(44)	604	2,527	(6)	91	67	8	7	(64)	332	2,283	(998)	1,269	15	563	(1,378)	(1,539)	(288)	9	(165)	(32)	(170)	79	(36)	(20)	75	(241)
Charge-offs								(3,491)	(5,497)	(12,794)	(2,999)	(4,582)	(8,891)	(325)	(695)	(3,615)	(167)	(220)	(288)				(432)	(1,786)	(1,831)	(1,580)	(654)	(2,856)	(877)	(2,058)	(4,123)	(105)	(45)	(81)				(5)	(39)
Recoveries								1,015	2,132	588	857	1,807	176	82	242	207	76	83	205				56	37	18	20	73	54	694	1,641	101	48	56	3				39
Allowance for loan losses, ending balance	$ 12,920				$ 12,920		$ 10,444	$ 10,444	$ 12,920	$ 14,835	$ 8,646	$ 10,746	$ 12,773	$ 1,674	$ 1,961	$ 1,810	$ 98	$ 195	$ 241	$ 26	$ 18	$ 11	$ 3,941	$ 3,985	$ 3,451	$ 2,191	$ 2,482	$ 3,048	$ 2,212	$ 3,773	$ 5,729	$ 94	$ 142	$ 296	$ 133	$ 303	$ 224	$ 75	$ 61	$ 25

XML

Deposits - Summary of Interest Bearing Deposits (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Interest Bearing Deposit Liabilities [Abstract]
NOW	$ 102,111	$ 142,923
MMDA	94,170	113,171
Savings	75,159	77,506
Time deposits less than $100,000	235,482	287,422
Time deposits $100,000 and over	315,287	275,318
Total interest-bearing deposits	$ 822,209	$ 896,340

XML

Parent Corporation Only Financial Statements (Tables)

12 Months Ended

Dec. 31, 2013

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Parent Company Only Balance Sheets

COMMUNITY BANKERS TRUST CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS

AS OF DECEMBER 31, 2013 and 2012

(dollars in thousands)

	2013			2012
Assets
Cash	$	323		$	838
Other assets		1,711			1,470
Investments in subsidiaries		108,789			117,176
Total assets	$	110,823		$	119,484
Liabilities
Other liabilities	$	40		$	42
Balances due to subsidiary bank		—			1
Balances due to non-bank subsidiary		4,124			4,124
Total liabilities		4,164			4,167
Stockholders’ Equity
Preferred stock (5,000,000 shares authorized, $0.01 par value) 10,680 and 17,680 issued and outstanding, respectively		10,680			17,680
Warrants on preferred stock		1,037			1,037
Discount on preferred stock		—			(234	)
Common stock (200,000,000 shares authorized $0.01 par value; 21,709,096 and 21,670,212 shares issued and outstanding, respectively)		217			217
Additional paid in capital		144,656			144,398
Retained earnings		(45,822	)		(50,609	)
Accumulated other comprehensive income		(4,109	)		2,828
Total stockholders’ equity	$	106,659		$	115,317
Total liabilities and stockholders’ equity	$	110,823		$	119,484

Parent Company Only Statements of Income

COMMUNITY BANKERS TRUST CORPORATION

PARENT COMPANY ONLY STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 and 2011

(dollars in thousands)

	2013			2012			2011
Income:
Interest and dividend income	$	—		$	—		$	—
Dividends received from subsidiaries		7,820			3,048			—
Gains on sale of securities, net		—			—			—
Other operating income		4			11			6
Total income		7,824			3,059			6
Expenses:
Interest expense		137			180			205
Management fee paid to subsidiaries		144			138			166
Stock option expense		5			(54	)		62
Bad debt		—			—			(17	)
Bank franchise taxes		236			180			182
Professional and legal expenses		112			129			102
Other operating expenses		74			(160	)		209
Total expenses		708			413			909
Equity in income / (loss) of subsidiaries		(1,449	)		2,778			2,040
Net income before income taxes		5,667			5,424			1,137
Income tax benefit		239			158			307
Net income	$	5,906		$	5,582		$	1,444

Parent Company Only Statements of Cash Flows

COMMUNITY BANKERS TRUST CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 and 2011

(dollars in thousands)

	2013			2012			2011
Operating activities:
Net income	$	5,906		$	5,582		$	1,444
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Issuance of common stock and stock options		258			156			245
Undistributed equity in loss (income) of subsidiary		1,449			(2,778	)		(2,040	)
(Increase) decrease in other assets		(241	)		(194	)		95
(Decrease) increase in other liabilities, net		(2	)		(239	)		171
Provision for loan loss		—			—			(17	)
Net cash and cash equivalents provided by (used in) operating activities		7,370			2,527			(102	)
Investing activities:
Recovery of bad debt		—			—			17
Net cash and cash equivalents provided by investing activities		—			—			17
Financing activities:
Repurchase of preferred stock		(7,000	)		—			—
Cash dividends paid		(885	)		(2,210	)		—
Net cash and cash equivalents used in financing activities		(7,885	)		(2,210	)		—
(Decrease) increase in cash and cash equivalents		(515	)		317			(85	)
Cash and cash equivalents at beginning of the period		838			521			606
Cash and cash equivalents at end of the period	$	323		$	838		$	521

XML

Employee Benefit Plans - Fair Value of Plan Assets (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 5,485	$ 5,255	$ 3,157
Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	5,484	5,253
Cash and Equivalents [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	6	5
Mutual Funds - Fixed Income [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	2,178	2,033
International Funds [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	828	418
Large Cap Funds [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	844	1,014
Mid Cap Funds [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	570	593
Small Cap Funds [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	201	258
Stock Fund [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 857	$ 932

XML

Parent Corporation Only Financial Statements - Parent Company Only Balance Sheets (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
ASSETS
Other assets	$ 14,378	$ 14,428
Total assets	1,089,532	1,153,288
Liabilities
Other liabilities	3,283	4,289
Balances due to non-bank subsidiary	4,124	4,124
Total liabilities	982,873	1,037,971
STOCKHOLDERS' EQUITY
Warrants on preferred stock	1,037	1,037
Discount on preferred stock		(234)
Retained earnings	(45,822)	(50,609)
Accumulated other comprehensive income	(4,109)	2,828	2,219	(145)
Total stockholders' equity	106,659	115,317	111,180	107,127
Total liabilities and stockholders' equity	1,089,532	1,153,288
Parent Company [Member]
ASSETS
Cash	323	838
Other assets	1,711	1,470
Investments in subsidiaries	108,789	117,176
Total assets	110,823	119,484
Liabilities
Other liabilities	40	42
Balances due to subsidiary bank		1
Balances due to non-bank subsidiary	4,124	4,124
Total liabilities	4,164	4,167
STOCKHOLDERS' EQUITY
Preferred stock (5,000,000 shares authorized, $0.01 par value) 10,680 and 17,680 issued and outstanding, respectively	10,680	17,680
Warrants on preferred stock	1,037	1,037
Discount on preferred stock		(234)
Common stock (200,000,000 shares authorized $0.01 par value; 21,709,096 and 21,670,212 shares issued and outstanding, respectively)	217	217
Additional paid in capital	144,656	144,398
Retained earnings	(45,822)	(50,609)
Accumulated other comprehensive income	(4,109)	2,828
Total stockholders' equity	106,659	115,317
Total liabilities and stockholders' equity	$ 110,823	$ 119,484

XML

Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) and Related Allowance for Loan Losses - Non-Covered Loans by Credit Quality Indicator (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	$ 596,337	$ 575,630
Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	487,518	489,340
Commercial Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	101,761	77,835
Consumer Installment Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	5,623	6,929
All Other Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	1,435	1,526
Residential 1-4 Family [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	141,974	135,420
Commercial [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	239,389	246,521
Construction and Land Development [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	54,745	61,127
Second Mortgages [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	6,369	7,230
Multifamily [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	35,774	28,683
Agriculture [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	9,267	10,359
Pass [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	548,426	492,972
Pass [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	443,033	408,681
Pass [Member] | Commercial Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	98,614	76,148
Pass [Member] | Consumer Installment Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	5,344	6,617
Pass [Member] | All Other Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	1,435	1,526
Pass [Member] | Residential 1-4 Family [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	127,074	118,931
Pass [Member] | Commercial [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	221,486	209,347
Pass [Member] | Construction and Land Development [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	43,949	36,261
Pass [Member] | Second Mortgages [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	5,687	6,519
Pass [Member] | Multifamily [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	35,774	27,514
Pass [Member] | Agriculture [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	9,063	10,109
Special Mention [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	25,111	42,061
Special Mention [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	21,934	40,636
Special Mention [Member] | Commercial Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	2,955	1,205
Special Mention [Member] | Consumer Installment Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	222	220
Special Mention [Member] | Residential 1-4 Family [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	8,193	6,496
Special Mention [Member] | Commercial [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	11,135	21,540
Special Mention [Member] | Construction and Land Development [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	2,178	10,954
Special Mention [Member] | Second Mortgages [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	428	477
Special Mention [Member] | Multifamily [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans		1,169
Substandard [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	22,800	40,441
Substandard [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	22,551	39,867
Substandard [Member] | Commercial Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	192	482
Substandard [Member] | Consumer Installment Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	57	92
Substandard [Member] | Residential 1-4 Family [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	6,707	9,993
Substandard [Member] | Commercial [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	6,768	15,478
Substandard [Member] | Construction and Land Development [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	8,618	13,912
Substandard [Member] | Second Mortgages [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	254	234
Substandard [Member] | Agriculture [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	204	250
Doubtful [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans		156
Doubtful [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans		156
Doubtful [Member] | Commercial [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans		$ 156

XML

Premises and Equipment - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Property Plant And Equipment [Abstract]
Depreciation expense	$ 1.6	$ 1.7	$ 1.8

XML

Loans Covered by FDIC Shared Loss Agreements (Covered Loans) - Summary of Covered Loans Collectively Evaluated for Impairment in Allowance for Loan Losses (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 484	$ 484
Loans, covered	73,275	84,637
Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	484	484
Loans, covered	73,275	84,636
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	252	252
Mortgage Loans on Real Estate [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	232	232
Mortgage Loans on Real Estate [Member] | Construction and Land Development [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses
Loans, covered	2,940	3,264
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses
Loans, covered	3,898	4,864
Mortgage Loans on Real Estate [Member] | Multifamily [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses
Loans, covered	266	304
Mortgage Loans on Real Estate [Member] | Agriculture [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses
Loans, covered	172	172
Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses
Loans, covered
Consumer Installment Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses
Loans, covered		1
All Other Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses
Loans, covered
Covered Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses		484	776	829
Loans, covered	73,275	84,637
Covered Loans [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, covered	73,275	84,636
Covered Loans [Member] | Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, covered	64,610	74,046
Covered Loans [Member] | Mortgage Loans on Real Estate [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, covered	1,389	1,986
Covered Loans [Member] | Mortgage Loans on Real Estate [Member] | Construction and Land Development [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, covered	2,940	3,264
Covered Loans [Member] | Mortgage Loans on Real Estate [Member] | Second Mortgages [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, covered	3,898	4,864
Covered Loans [Member] | Mortgage Loans on Real Estate [Member] | Multifamily [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, covered	266	304
Covered Loans [Member] | Mortgage Loans on Real Estate [Member] | Agriculture [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, covered	172	172
Covered Loans [Member] | Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, covered
Covered Loans [Member] | Consumer Installment Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, covered		1
Covered Loans [Member] | All Other Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, covered

XML

Other Intangibles - Additional Information (Detail) (USD $)			12 Months Ended	1 Months Ended
	Dec. 31, 2013 GEORGIA	Dec. 31, 2013 MASSACHUSETTS	Dec. 31, 2013 Georgia and Maryland [Member]	May 31, 2008 Core Deposit Intangibles [Member]	Dec. 31, 2013 Core Deposit Intangibles [Member]
Finite-Lived Intangible Assets [Line Items]
Core deposit intangible assets	$ 3,200,000	$ 2,100,000		$ 15,000,000
Core deposit intangible assets are amortized over the expected period			9 years	9 years
Amortization of finite life intangible assets in 2014					1,900,000
Amortization of finite life intangible assets in 2015					1,900,000
Amortization of finite life intangible assets in 2016					1,900,000
Amortization of finite life intangible assets in 2017					$ 898,000

XML

Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) and Related Allowance for Loan Losses - Loans Modified as TDRs (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013 Contract	Dec. 31, 2012 Contract
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts	2	6
Pre-Modification Outstanding Recorded Investment	$ 501,000	$ 5,590,000
Post-Modification Outstanding Recorded Investment	501,000	5,388,000
Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts		6
Pre-Modification Outstanding Recorded Investment		5,590,000
Post-Modification Outstanding Recorded Investment		5,388,000
Residential 1-4 Family [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts		3
Pre-Modification Outstanding Recorded Investment		765,000
Post-Modification Outstanding Recorded Investment		765,000
Commercial [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts		2
Pre-Modification Outstanding Recorded Investment		4,150,000
Post-Modification Outstanding Recorded Investment		3,948,000
Construction and Land Development [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts		1
Pre-Modification Outstanding Recorded Investment		675,000
Post-Modification Outstanding Recorded Investment		$ 675,000

XML

Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) and Related Allowance for Loan Losses - Reconciliation of Impaired Loans to Nonaccrual Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Nonaccruals	$ 12,105	$ 21,048
Total impaired	13,801	22,365
Troubled Debt Restructure [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Still accruing	1,696	847
Special Mention [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Still accruing		299
Substandard [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Still accruing		$ 171

XML

Concentration of Credit Risk

12 Months Ended

Dec. 31, 2013

Risks And Uncertainties [Abstract]

Concentration of Credit Risk

Note 18. Concentration of Credit Risk

At December 31, 2013 and 2012, the Bank’s loan portfolio consisted of commercial, real estate and consumer (installment) loans. Real estate secured loans represented the largest concentration at 83.75% and 86.96% of the loan portfolio for 2013 and 2012, respectively.

The Bank maintains a portion of its cash balances with several financial institutions located in its market area. Accounts at each institution are secured by the FDIC up to $250,000. Uninsured balances were $7.1 million and $8.9 million at December 31, 2013 and 2012, respectively

XML

Branch Sale - Summary of Deposits Related to Branch Sale (Detail) (USD $) In Thousands, unless otherwise specified	Nov. 08, 2013
Deposits
Total deposits	$ 193,170
Noninterest Bearing [Member]
Deposits
Total deposits	15,869
Interest Bearing [Member]
Deposits
Total deposits	$ 177,301

XML

Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Computation of Earnings Per Share

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 Available to Common Stockholders (Numerator)		Weighted Average Common Shares (Denominator)		Per Common Share Amount
For the Twelve Months ended December 31, 2013
Shares issued				21,689
Unissued vested restricted stock				11
Basic EPS	$	4,787		21,700	$	0.22
Effect of dilutive stock awards and options		—		222		—
Diluted EPS	$	4,787		21,922	$	0.22
For the Twelve Months ended December 31, 2012
Shares issued				21,640
Unissued vested restricted stock				7
Basic EPS	$	4,478		21,647	$	0.21
Effect of dilutive stock awards and options		—		70		—
Diluted EPS	$	4,478		21,717	$	0.21
For the Twelve Months ended December 31, 2011
Basic EPS	$	354		21,565	$	0.02
Effect of dilutive stock awards and options				—		—
Diluted EPS	$	354		21,565	$	0.02

XML

Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2013

Property Plant And Equipment [Abstract]

Summary of the Bank Premises and Equipment

A summary of the bank premises and equipment is as follows (dollars in thousands):

	December 31
	2013			2012
Land	$	7,681		$	11,808
Land improvements and buildings		21,087			23,519
Leasehold improvements		58			54
Furniture and equipment		5,574			5,912
Construction in progress		1,385			29
Total		35,785			41,322
Less accumulated depreciation and amortization		(7,913	)		(7,684	)
Bank premises and equipment, net	$	27,872		$	33,638

XML

Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) and Related Allowance for Loan Losses - Non-Covered Loans Evaluated for Impairment (Parenthetical) (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Receivables [Abstract]
Individually evaluated for impairment	$ 10,000,000	$ 19,000,000
Allowance for loans losses	$ 239,000	$ 714,000

XML

Borrowings - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2013
Debt Instrument [Line Items]
Total borrowing capacity	$ 88.1
Residential 1-4 Family [Member]
Debt Instrument [Line Items]
Loans pledged as collateral to the FHLB for borrowing	139.3
Unused Lines of Credit [Member]
Debt Instrument [Line Items]
Total overnight borrowing unsecured lines of credit	$ 26

XML

Nature of Banking Activities and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Organization

Organization

Community Bankers Trust Corporation (the “Company”) is a bank holding company that was incorporated in 2005. The Company is headquartered in Glen Allen, Virginia and is the holding company for Essex Bank (the “Bank”), a Virginia state bank with 19 full-service offices in Virginia and Maryland. The Bank also operates two loan production offices in Virginia.

The Bank was established in 1926. 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, and six are located in Maryland along the Baltimore-Washington corridor.

Prior to November 8, 2013, the Bank also had four full-service offices in Georgia. The Bank sold those offices and related deposits to Community & Southern Bank on November 8, 2013. See Note 29 for additional information.

Principles of Consolidation

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and the Bank, its wholly-owned subsidiary. All material intercompany balances and transactions have been eliminated in consolidation. Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 810, Consolidation, requires that the Company no longer eliminate through consolidation the equity investment in BOE Statutory Trust I, which was $124,000 at December 31, 2013 and 2012. The subordinated debt of the Trust is reflected as a liability of the Company.

Cash and Cash Equivalents

Cash and Cash Equivalents

For purposes of the consolidated statements of cash flows, the Company has defined cash and cash equivalents as cash and due from banks, interest-bearing bank balances, and federal funds sold.

Restricted Cash

Restricted Cash

The Bank is required to maintain a reserve against its deposits in accordance with Regulation D of the Federal Reserve Act. For the final weekly reporting period, the aggregate amount of daily average required reserves was $9.4 million and $9.6 million for each of the years ended December 31, 2013 and 2012, respectively.

Securities

Securities

Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Securities not classified as held to maturity, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income.

Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other than temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are determined using the specific identification method.

Restricted Securities

Restricted Securities

The Company is required to maintain an investment in the capital stock of certain correspondent banks. The Company’s investment in these securities is recorded at cost.

Loans Held for Sale

Loans Held for Sale

Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated market in the aggregate. Net unrealized losses are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are sold with the mortgage servicing rights released by the Company.

The Company enters into commitments to originate certain mortgage loans whereby the interest rate on the loans is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. The period of time between issuance of a loan commitment and closing and the sale of the loan generally ranges from thirty to ninety days. The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Company is not exposed to losses nor will it realize significant gains related to its rate lock commitments due to changes in interest rates. The correlation between the rate lock commitments and the best efforts contracts is very high due to their similarity. Because of this high correlation, the gain or loss that occurs on the rate lock commitments is immaterial.

Loans

Loans

The Bank grants mortgage, commercial and consumer loans to customers. A significant portion of the loan portfolio is represented by 1-4 family residential and commercial mortgage loans. The ability of the Bank’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in the Bank’s market area.

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method.

The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Consumer loans are typically charged off no later than 180 days past due. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Allowance for Loan Losses on Non-Covered Loans

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 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, it is probable that the Company 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, 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 Bank does not separately identify individual consumer and residential loans for impairment disclosures.

Accounting for Certain Loans or Debt Securities Acquired in a Transfer

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 Suburban Federal Savings Bank (SFSB) acquisition (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, Loans and Debt Securities Acquired with Deteriorated Credit Quality (formerly SOP 03-3), 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 acquisition. The Company has grouped loans together based on common risk characteristics including product type, delinquency status and loan documentation requirements among others.

The covered loans acquired are subject to credit review standards described above for non-covered loans. If and when credit deterioration occurs subsequent to the acquisition date, a provision for credit loss for covered loans will be charged to earnings for the full amount without regard to the shared-loss agreements.

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 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 allowance for loan loss. 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.

Bank Premises and Equipment

Bank Premises and Equipment

Bank premises and equipment are stated at cost less accumulated depreciation. Land is carried at cost. Depreciation of bank premises and equipment is computed on the straight-line method over estimated useful lives of 10 to 50 years for premises and 3 to 20 years for equipment, furniture and fixtures.

Costs of maintenance and repairs are charged to expense as incurred and major improvements are capitalized. Upon sale or retirement of depreciable properties, the cost and related accumulated depreciation are eliminated from the accounts and the resulting gain or loss is included in the determination of income.

Other Real Estate Owned

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 selling 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. The Company had $6.2 million and $10.8 million in other real estate, non-covered at December 31, 2013 and 2012, respectively, and $2.7 million and $3.4 million in other real estate, covered at December 31, 2013 and 2012 respectively.

Other Intangibles

Other Intangibles

FASB ASC 805, Business Combinations, requires that the purchase method of accounting be used for all business combinations after June 30, 2001. With purchase acquisitions, the Company is required to record assets acquired, including any intangible assets, and liabilities assumed at fair value, which involves relying on estimates based on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analysis or other valuation methods. The Company records intangibles under FASB ASC 350, which states that 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 Company followed FASB ASC 350 and determined that any core deposit intangibles will be amortized over the estimated useful life. Core deposit intangibles are evaluated for impairment in accordance with FASB ASC 350.

Advertising Costs

Advertising Costs

The Company follows the policy of expensing advertising costs as incurred, which totaled $384,000, $336,000, and $329,000 for 2013, 2012, and 2011, respectively.

Income Taxes

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 income. 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 that 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.

The Company and its subsidiaries are subject to U. S. federal income tax as well as various state income taxes. Years 2010 through 2013 are open to examination by the respective tax authorities.

Earnings Per Share

Earnings Per Share

Basic earnings per share (EPS) is computed based on the weighted average number of shares outstanding and excludes any dilutive effects of options, warrants and convertible securities. Diluted EPS is computed in a manner similar to basic EPS, except for certain adjustments to the numerator and the denominator. Diluted EPS gives effect to all dilutive potential common shares that were outstanding at the end of the period. Potential common shares that may be issued by the Company relate solely to outstanding stock options and warrants and are determined using the treasury stock method. The Company declared and paid $885,000, $2.2 million, and $0 in dividends on preferred stock in 2013, 2012, and 2011, respectively.

Stock-Based Compensation

Stock-Based Compensation

In April 2009, the Company adopted the Community Bankers Trust Corporation 2009 Stock Incentive Plan which is authorized to issue up to 2,650,000 shares of common stock. See Note 14 for details regarding these plans.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In January 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-04, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40) — Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. Although current guidance indicates that a creditor should reclassify a collateralized mortgage loan as other real estate owned when it determines that there has been in substance a repossession or foreclosure by the creditor, that is, the creditor receives physical possession of the debtor’s assets regardless of whether formal foreclosure proceedings take place, the terms in substance a repossession or foreclosure and physical possession are not defined in the accounting literature. This has resulted in diversity about when a creditor should derecognize the loan receivable and recognize the real estate property. The objective of the amendments in this Update is to reduce diversity by clarifying when an in substance repossession or foreclosure occurs. The amendments state that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments are effective for public business entities for annual periods and interim periods within those annual periods beginning after December 15, 2014. Early adoption is permitted. The Company currently records foreclosures in accordance with this guidance; therefore, no changes are necessary for adoption.

Also in January 2014, the FASB issued ASU No. 2014-01, Investments — Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force). The amendments in this ASU apply to all reporting entities that invest in qualified affordable housing projects through limited liability entities that are flow through entities for tax purposes. Currently, an investor that invests in a qualified affordable housing project may elect to account for that investment using the effective yield method. Those not electing the effective yield method would account for the investment using the equity method or cost method. The Task Force received stakeholder feedback indicating that certain of the required conditions for the effective yield method are overly restrictive and thus prevent many investments in qualified affordable housing projects from qualifying for the use of this method. Those stakeholders stated that presenting the investment performance net of taxes as a component of income tax expense (benefit) as prescribed by the effective yield method more fairly represents the economics and provides users with a better understanding of the returns from such investments than the equity or cost methods.

The amendments in this ASU eliminate the effective yield election and permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). Those not electing the proportional amortization method would account for the investment using the equity method or cost method. The decision to apply the proportional amortization method of accounting is an accounting policy decision that should be applied consistently to all qualifying affordable housing project investments rather than a decision to be applied to individual investments. A reporting entity should disclose information that enables users of its financial statements to understand the nature of its investments in qualified affordable housing projects, and the effect of the measurement of its investments in qualified affordable housing projects and the related tax credits on its financial position and results of operations. The amendments in this ASU should be applied retrospectively to all periods presented. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). U.S. GAAP does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets.

The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. Retrospective application is permitted. The Company currently presents these tax items in accordance with this guidance; therefore, no changes are necessary for adoption.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of other real estate owned, projected cash flows relating to certain acquired loans, the value of the indemnification asset, and the valuation of deferred tax assets.

Reclassifications

Reclassifications

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

Financing Receivable Allowance for Credit Losses

At December 31, 2013 and 2012, the Company’s allowance for credit losses is comprised of the following: (i) any 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 FASB ASC 310.

Loans Receivable Troubled Debt Restructuring

In accordance with FASB ASU 2011-02, Receivables (Topic 310): A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring, the Company assesses all loan modifications to determine whether they are considered troubled debt restructurings (TDRs) under the guidance.

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.

Fair Value Measurement

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.

Fair Value of 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.

Impaired Financing Receivable

Once a loan is identified as individually impaired, management measures the impairment in accordance with FASB ASC 310, Receivables.

XML

Financial Instruments With Off-Balance Sheet Risk (Tables)

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Summary of the Contract Amounts of the Bank's Exposure to Off-Balance Sheet Risk

A summary of the contract amounts of the Bank’s exposure to off-balance sheet risk as of December 31, 2013 and 2012, is as follows (dollars in thousands):

	2013		2012
Commitments with off-balance sheet risk:
Commitments to extend credit	$	72,183	$	64,056
Standby letters of credit		9,978		9,487
Total commitments with off-balance sheet risk	$	82,161	$	73,543

XML

Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) and Related Allowance for Loan Losses - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013 TDRs Contract	Dec. 31, 2012 Contract SecurityLoan	Dec. 31, 2011
Financing Receivable, Recorded Investment [Line Items]
Purchased government-guaranteed loans	$ 596,173,000	$ 575,482,000
Percentage of loans guaranteed by the USDA	100.00%	100.00%
Cash Basis income recognized for impairment losses	0	0	0
Estimated interest income	980,000	1,300,000	1,800,000
Write-offs from transfer of loan from non covered loans to loans held for sale	500,000
Purchased government-guaranteed loans	38,500,000	40,900,000
Number of Contracts	2	6
Pre-Modification Outstanding Recorded Investment	501,000	5,590,000
Post-Modification Outstanding Recorded Investment	501,000	5,388,000
Number of contracts modified term extended		4
Number of contracts modified interest rate reduced		5
Restructurings included payments for one loan		202,000
Number of loan that restructured and default	1	1
1-4 family mortgages pledged as collateral to the federal bank home loan	139,300,000
Total borrowing capacity	88,100,000
Nonaccruing Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Interest income recognized on impaired loans	0	0	0
Accruing Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Interest income recognized on impaired loans	0	0	0
Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment	173,000
Guaranteed Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Purchased government-guaranteed loans	38,500,000	40,900,000
Percentage of loans guaranteed by the USDA	100.00%	100.00%
Unamortized purchase premium	2,500,000	3,400,000
Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment		$ 519,000

XML

Stock Option Plans - Additional Information (Detail) (USD $)	1 Months Ended			12 Months Ended									1 Months Ended							12 Months Ended	1 Months Ended	12 Months Ended					12 Months Ended		1 Months Ended	12 Months Ended
	Dec. 31, 2013	Jan. 31, 2013	Jan. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013 Personnel Expense [Member]	Dec. 31, 2012 Personnel Expense [Member]	Dec. 31, 2011 Personnel Expense [Member]	Dec. 31, 2013 Other Operating Expense [Member]	Dec. 31, 2012 Other Operating Expense [Member]	Dec. 31, 2011 Other Operating Expense [Member]	May 31, 2008 TFC Stock Option Plan [Member]	May 31, 2008 BOE Stock Option Plan [Member]	Dec. 31, 2013 Stock Options [Member]	Jan. 31, 2013 Stock Options [Member]	Jan. 31, 2012 Stock Options [Member]	Oct. 31, 2011 Stock Options [Member]	Jan. 31, 2013 Restricted Stock [Member]	Dec. 31, 2013 Restricted Stock [Member]	Jan. 31, 2013 Restricted Stock [Member] Senior Executive [Member]	Dec. 31, 2013 Options And Restricted Stock [Member]	Dec. 31, 2013 2009 Stock Option Plan [Member]	Dec. 31, 2009 2009 Stock Option Plan [Member]	Dec. 31, 2009 2009 Stock Option Plan [Member] Stock Options [Member]	Dec. 31, 2009 2009 Stock Option Plan [Member] Stock Options [Member] Maximum [Member]	Dec. 31, 2013 2009 Stock Option Plan [Member] Stock Options [Member] Minimum [Member]	Dec. 31, 2013 2009 Stock Option Plan [Member] Nonstatutory Stock Options [Member] Minimum [Member]	May 31, 2008 TFC and BOE Stock Option Plans [Member]	Dec. 31, 2013 TFC and BOE Stock Option Plans [Member]	Dec. 31, 2012 TFC and BOE Stock Option Plans [Member]	Dec. 31, 2011 TFC and BOE Stock Option Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares authorized under 2009 stock incentive plan																								2,650,000		1,500,000
Authorized annual grant of stock options per employee																									500,000
Minimum fair value percentage, if participant owns up to 10% voting power																											100.00%	100.00%
Minimum fair value percentage, if participant owns more than 10% voting power																											110.00%
Specified voting power percentage																											10.00%
Share-based compensation arrangement by share-based payment award, expiration date																							Jun. 17, 2019
Percentage of total financial assistance repaid																25.00%
Percentage of restricted stock transferrable																			25.00%
Description of minimum rules for long-term equity grants		These rules require that for each 25% of total financial assistance repaid, 25% of the total restricted stock may become transferrable
Granted, Restricted Stock number of shares																					25,000
Stock options grants in period				230,000									332,351	161,426	230,000		270,000	50,000					230,000
Stock option vesting period	4 years		4 years
Stock options vesting percentage						100.00%
Granted, weighted average grant date fair value				$ 1.16	$ 0.46	$ 0.36
Company received in cash related to option exercises				$ 6,000
Options exercised					0	0																	5,000
Option exercises, total intrinsic value				11,000
Stock-based compensation expense				253,000	156,000	227,000	135,000	57,000	44,000	118,000	99,000	183,000
Unrecognized compensation expense related to non-vested options and restricted stock																				290,000
Total fair market value of shares non-option and restricted stock vested				42,000	51,000	35,000
Weighted average period																						33 months
Stock option issued plans former employees exchange rates													1.42%	5.7278%
Fair value of stock options at acquisition date																													1,488,000
stock option discount rate																													4.06%
stock options volatility rate																													25.00%
Stock options remaining term													4 years 9 months 29 days	5 years 3 months
Intrinsic value of stock options outstanding and exercisable																							$ 352,849							$ 0	$ 0	$ 0

XML

Securities - Amortized Costs and Fair Values of Securities Available for Sale and Held to Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule Of Available For Sale And Held To Maturity Securities [Line Items]
Securities Available for Sale, Amortized Cost	$ 271,768	$ 303,161
Securities Available for Sale, Gross Unrealized Gains	1,587	6,854
Securities Available for Sale, Gross Unrealized Losses	(7,578)	(937)
Securities Available for Sale, Fair Value	265,777	309,078
Securities Held to Maturity, Amortized Cost	28,563	42,283
Securities Held to Maturity, Gross Unrealized Gains	1,742	2,945
Securities Held to Maturity, Gross Unrealized Losses
Securities Held to Maturity, Fair Value	30,305	45,228
U.S. Treasury Issue and Other U.S. Gov't Agencies [Member]
Schedule Of Available For Sale And Held To Maturity Securities [Line Items]
Securities Available for Sale, Amortized Cost	99,789	153,480
Securities Available for Sale, Gross Unrealized Gains	165	362
Securities Available for Sale, Gross Unrealized Losses	(967)	(565)
Securities Available for Sale, Fair Value	98,987	153,277
U.S. Gov't Sponsored Agencies [Member]
Schedule Of Available For Sale And Held To Maturity Securities [Line Items]
Securities Available for Sale, Amortized Cost	487	500
Securities Available for Sale, Gross Unrealized Gains		3
Securities Available for Sale, Gross Unrealized Losses	(1)
Securities Available for Sale, Fair Value	486	503
State, County and Municipal [Member]
Schedule Of Available For Sale And Held To Maturity Securities [Line Items]
Securities Available for Sale, Amortized Cost	138,884	112,110
Securities Available for Sale, Gross Unrealized Gains	1,297	5,757
Securities Available for Sale, Gross Unrealized Losses	(6,085)	(271)
Securities Available for Sale, Fair Value	134,096	117,596
Securities Held to Maturity, Amortized Cost	9,385	11,825
Securities Held to Maturity, Gross Unrealized Gains	718	1,142
Securities Held to Maturity, Gross Unrealized Losses
Securities Held to Maturity, Fair Value	10,103	12,967
Corporate and Other Bonds [Member]
Schedule Of Available For Sale And Held To Maturity Securities [Line Items]
Securities Available for Sale, Amortized Cost	6,369	7,530
Securities Available for Sale, Gross Unrealized Gains	27	96
Securities Available for Sale, Gross Unrealized Losses	(47)	(8)
Securities Available for Sale, Fair Value	6,349	7,618
Mortgage Backed - U.S. Gov't Agencies [Member]
Schedule Of Available For Sale And Held To Maturity Securities [Line Items]
Securities Available for Sale, Amortized Cost	3,608	15,192
Securities Available for Sale, Gross Unrealized Gains	29	378
Securities Available for Sale, Gross Unrealized Losses	(198)	(10)
Securities Available for Sale, Fair Value	3,439	15,560
Securities Held to Maturity, Amortized Cost	6,604	9,112
Securities Held to Maturity, Gross Unrealized Gains	398	615
Securities Held to Maturity, Gross Unrealized Losses
Securities Held to Maturity, Fair Value	7,002	9,727
Mortgage Backed - U.S. Gov't Sponsored Agencies [Member]
Schedule Of Available For Sale And Held To Maturity Securities [Line Items]
Securities Available for Sale, Amortized Cost	22,631	14,349
Securities Available for Sale, Gross Unrealized Gains	69	258
Securities Available for Sale, Gross Unrealized Losses	(280)	(83)
Securities Available for Sale, Fair Value	22,420	14,524
Securities Held to Maturity, Amortized Cost	12,574	21,346
Securities Held to Maturity, Gross Unrealized Gains	626	1,188
Securities Held to Maturity, Gross Unrealized Losses
Securities Held to Maturity, Fair Value	$ 13,200	$ 22,534

XML

Borrowings (Tables)

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Information for Borrowings Balances, Rates, and Maturities

The following information is provided for borrowings balances, rates, and maturities (dollars in thousands):

	As of December 31
	2013			2012
Short-term:
Federal Funds purchased	$	—		$	5,412
Securities sold under agreements to repurchase		6,000			—
Total short-term borrowings	$	6,000		$	5,412
Maximum month-end outstanding balance	$	9,722		$	16,446
Average outstanding balance during the year	$	1,451		$	1,348
Average interest rate during the year		0.55	%		0.64	%
Average interest rate at end of year		0.45	%		0.43	%
Long-term:
Federal Home Loan Bank advances	$	77,125		$	49,828
Maximum month-end outstanding balance	$	77,303		$	50,000
Average outstanding balance during the year	$	51,252		$	41,235
Average interest rate during the year		1.10	%		2.40	%
Average interest rate at end of year		0.66	%		1.24	%

Maturities of Fixed Rate Long-Term Debt

Maturities of fixed rate long-term debt at December 31, 2013 are as follows (dollars in thousands):

2014	$	30,000
2015		20,000
2016		10,000
2017		5,000
2018		—
Thereafter		12,125
Total	$	77,125

XML

Securities

12 Months Ended

Dec. 31, 2013

Investments Debt And Equity Securities [Abstract]

Securities

Note 2. Securities

The amortized cost and fair value of securities available for sale and held to maturity as of December 31, 2013 and 2012 were as follows (dollars in thousands):

	December 31, 2013
	Gross Unrealized
	Amortized Cost		Gains		Losses			Fair Value
Securities Available for Sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	99,789	$	165	$	(967	)	$	98,987
U.S. Gov’t sponsored agencies		487		—		(1	)		486
State, county and municipal		138,884		1,297		(6,085	)		134,096
Corporate and other bonds		6,369		27		(47	)		6,349
Mortgage backed – U.S. Gov’t agencies		3,608		29		(198	)		3,439
Mortgage backed – U.S. Gov’t sponsored agencies		22,631		69		(280	)		22,420
Total Securities Available for Sale	$	271,768	$	1,587	$	(7,578	)	$	265,777
Securities Held to Maturity
State, county and municipal	$	9,385	$	718	$	—		$	10,103
Mortgage backed – U.S. Gov’t agencies		6,604		398		—			7,002
Mortgage backed – U.S. Gov’t sponsored agencies		12,574		626		—			13,200
Total Securities Held to Maturity	$	28,563	$	1,742	$	—		$	30,305

	December 31, 2012
	Gross Unrealized
	Amortized Cost		Gains		Losses			Fair Value
Securities Available for Sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	153,480	$	362	$	(565	)	$	153,277
U.S. Gov’t sponsored agencies		500		3		—			503
State, county and municipal		112,110		5,757		(271	)		117,596
Corporate and other bonds		7,530		96		(8	)		7,618
Mortgage backed – U.S. Gov’t agencies		15,192		378		(10	)		15,560
Mortgage backed – U.S. Gov’t sponsored agencies		14,349		258		(83	)		14,524
Total Securities Available for Sale	$	303,161	$	6,854	$	(937	)	$	309,078
Securities Held to Maturity
State, county and municipal	$	11,825	$	1,142	$	—		$	12,967
Mortgage backed – U.S. Gov’t agencies		9,112		615		—			9,727
Mortgage backed – U.S. Gov’t sponsored agencies		21,346		1,188		—			22,534
Total Securities Held to Maturity	$	42,283	$	2,945	$	—		$	45,228

The amortized cost and fair value of securities at December 31, 2013 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 (dollars in thousands).

	Held to Maturity				Available for Sale
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	2,447	$	2,497	$	6,367	$	6,305
Due after one year through five years		24,677		26,198		42,963		42,709
Due after five years through ten years		1,439		1,610		141,675		138,206
Due after ten years		—		—		80,763		78,557
Total securities	$	28,563	$	30,305	$	271,768	$	265,777

Proceeds from sales of securities available for sale were $77.8 million, $149.9 million and $216.8 million during the years ended December 31, 2013, 2012 and 2011, respectively. Gains and losses on the sale of securities are determined using the specific identification method. Gross realized gains and losses on sales of securities available for sale during the years ended December 31, 2013, 2012 and 2011 were as follows (dollars in thousands):

	2013			2012			2011
Gross realized gains	$	645		$	2,236		$	2,953
Gross realized losses		(127	)		(744	)		(85	)
Net securities gains	$	518		$	1,492		$	2,868

In estimating other than temporary impairment (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 OTTI losses for the years ended December 31, 2013, 2012 and 2011.

The fair value and gross unrealized losses for securities available for sale, segregated by the length of time that individual securities have been in a continuous gross unrealized loss position, at December 31, 2013 and 2012 were as follows (dollars in thousands):

	December 31, 2013
	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	$	35,873	$	(531	)	$	37,638	$	(436	)	$	73,511	$	(967	)
U.S. Gov’t sponsored agencies		486		(1	)		—		—			486		(1	)
State, county and municipal		92,010		(5,343	)		6,445		(742	)		98,455		(6,085	)
Corporate and other bonds		3,332		(42	)		991		(5	)		4,323		(47	)
Mortgage backed – U.S. Gov’t agencies		2,767		(198	)		—		—			2,767		(198	)
Mortgage backed – U.S. Gov’t sponsored agencies		14,572		(258	)		1,557		(22	)		16,129		(280	)
Total	$	149,040	$	(6,373	)	$	46,631	$	(1,205	)	$	195,671	$	(7,578	)

	December 31, 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	$	70,561	$	(565	)	$	—	$	—	$	70,561	$	(565	)
U.S. Gov’t sponsored agencies		—		—			—		—		—		—
State, county and municipal		17,404		(271	)		—		—		17,404		(271	)
Corporate and other bonds		1,485		(8	)		—		—		1,485		(8	)
Mortgage backed – U.S. Gov’t agencies		1,688		(10	)		—		—		1,688		(10	)
Mortgage backed – U.S. Gov’t sponsored agencies		4,779		(83	)		—		—		4,779		(83	)
Total	$	95,917	$	(937	)	$	—	$	—	$	95,917	$	(937	)

The unrealized losses (impairments) in the investment portfolio as of December 31, 2013 and 2012 are generally a result of market fluctuations that occur daily. At December 31, 2013, the unrealized losses are from 256 securities. Of those, 251 are investment grade and are backed by insurance, 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 five securities with unrealized losses at December 31, 2013. 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 financial statements.

Securities with amortized costs of $109.1 million and $111.7 million as of December 31, 2013 and 2012, respectively, were pledged to secure public deposits and for other purposes required or permitted by law. At each of December 31, 2013 and 2012, 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.

XML

Quarterly Data (Unaudited) - Summary of Quarterly Data (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended												12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Quarterly Financial Data [Abstract]
Interest and dividend income	$ 12,217	$ 13,171	$ 12,491	$ 12,166	$ 12,919	$ 12,872	$ 14,119	$ 13,809	$ 13,877	$ 14,272	$ 14,492	$ 13,394	$ 50,045	$ 53,719	$ 56,035
Interest expense	1,644	1,749	1,791	1,894	2,054	2,339	2,587	2,712	2,864	2,974	3,079	3,311	7,078	9,692	12,228
Net interest income	10,573	11,422	10,700	10,272	10,865	10,533	11,532	11,097	11,013	11,298	11,413	10,083	42,967	44,027	43,807
Provision for loan losses					450		500	250				1,498		1,200	1,498
Net interest income after provision for loan losses	10,573	11,422	10,700	10,272	10,415	10,533	11,032	10,847	11,013	11,298	11,413	8,585	42,967	42,827	42,309
Noninterest income	1,467	593	1,338	1,326	1,299	2,470	1,462	975	1,476	3,355	973	2,430	4,724	6,206	8,233
Noninterest expenses	10,386	9,433	9,758	9,711	9,693	10,357	10,811	10,442	11,555	12,699	11,738	13,047	39,288	41,303	49,038
Income (loss) before income taxes	1,654	2,582	2,280	1,887	2,021	2,646	1,683	1,380	934	1,954	648	(2,032)	8,403	7,730	1,504
Income tax expense (benefit)	461	800	673	563	448	837	473	390	239	532	127	(838)	2,497	2,148	60
Net income (loss)	1,193	1,782	1,607	1,324	1,573	1,809	1,210	990	695	1,422	521	(1,194)	5,906	5,582	1,444
Dividends paid on preferred stock	235	208	221	221	221	221	221	221					885	884
Accretion of discount on preferred stock	44	73	59	58	55	55	55	55	51	51	53	51	234	220	206
Accumulated preferred dividends									221	221	221	221			884
Net income (loss) available to common shareholders	$ 914	$ 1,501	$ 1,327	$ 1,045	$ 1,297	$ 1,533	$ 934	$ 714	$ 423	$ 1,150	$ 247	$ (1,466)	$ 4,787	$ 4,478	$ 354
Earnings (loss) per common share, basic	$ 0.04	$ 0.07	$ 0.06	$ 0.05	$ 0.06	$ 0.07	$ 0.04	$ 0.03	$ 0.02	$ 0.05	$ 0.01	$ (0.07)	$ 0.22	$ 0.21	$ 0.02
Earnings (loss) per common share, diluted	$ 0.04	$ 0.07	$ 0.06	$ 0.05	$ 0.06	$ 0.07	$ 0.04	$ 0.03	$ 0.02	$ 0.05	$ 0.01	$ (0.07)	$ 0.22	$ 0.21	$ 0.02

XML

Earnings Per Common Share - Computation of Earnings Per Share (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended												12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Earnings Per Share [Abstract]
Basic EPS, Net Income Available to Common Stockholders (Numerator)	$ 914	$ 1,501	$ 1,327	$ 1,045	$ 1,297	$ 1,533	$ 934	$ 714	$ 423	$ 1,150	$ 247	$ (1,466)	$ 4,787	$ 4,478	$ 354
Effect of dilutive stock awards and options, Net Income Available to Common Stockholders (Numerator)
Diluted EPS, Net Income Available to Common Stockholders (Numerator)													$ 4,787	$ 4,478	$ 354
Shares issued, Weighted Average Common Shares (Denominator)													21,689	21,640
Unissued vested restricted stock, Weighted Average Common Shares (Denominator)													11	7
Basic EPS , Weighted Average Common Shares (Denominator)													21,700	21,647	21,565
Effect of dilutive stock awards, Weighted Average Common Shares (Denominator)													222	70
Diluted EPS, Weighted Average Common Shares (Denominator)													21,922	21,717	21,565
Basic EPS, Per Common Share Amount	$ 0.04	$ 0.07	$ 0.06	$ 0.05	$ 0.06	$ 0.07	$ 0.04	$ 0.03	$ 0.02	$ 0.05	$ 0.01	$ (0.07)	$ 0.22	$ 0.21	$ 0.02
Effect of dilutive stock awards and options, Per Common Share Amount
Diluted EPS, Per Common Share Amount	$ 0.04	$ 0.07	$ 0.06	$ 0.05	$ 0.06	$ 0.07	$ 0.04	$ 0.03	$ 0.02	$ 0.05	$ 0.01	$ (0.07)	$ 0.22	$ 0.21	$ 0.02

XML

Securities - Amortized Cost and Fair Value of Securities by Contractual Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Amortized Cost And Fair Value Debt Securities [Abstract]
Due in one year or less, Held to Maturity, Amortized Cost	$ 2,447
Due after one year through five years, Held to Maturity, Amortized Cost	24,677
Due after five years through ten years, Held to Maturity, Amortized Cost	1,439
Due after ten years, Held to Maturity, Amortized Cost
Total securities, Held to Maturity, Amortized Cost	28,563	42,283
Due in one year or less, Held to Maturity, Fair Value	2,497
Due after one year through five years, Held to Maturity, Fair Value	26,198
Due after five years through ten years, Held to Maturity, Fair Value	1,610
Due after ten years, Held to Maturity, Fair Value
Securities Held to Maturity, Fair Value	30,305	45,228
Due in one year or less, Available for Sale, Amortized Cost	6,367
Due after one year through five years, Available for Sale, Amortized Cost	42,963
Due after five years through ten years, Available for Sale, Amortized Cost	141,675
Due after ten years, Available for Sale, Amortized Cost	80,763
Total securities, Available for Sale, Amortized Cost	271,768	303,161
Due in one year or less, Available for Sale, Fair Value	6,305
Due after one year through five years, Available for Sale, Fair Value	42,709
Due after five years through ten years, Available for Sale, Fair Value	138,206
Due after ten years, Available for Sale, Fair Value	78,557
Securities Available for Sale, Fair Value	$ 265,777	$ 309,078

XML

Fair Values of Assets and Liabilities - Summary of Fair Value of Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Financial assets:
Securities held to maturity	$ 30,305	$ 45,228
FDIC indemnification asset	25,409	33,837	42,641	58,369
Financial liabilities:
Interest bearing deposits	822,209	896,340
Level 1 [Member]
Financial assets:
Securities held to maturity
Loans, non-covered
Loans, covered
FDIC indemnification asset
Financial liabilities:
Interest bearing deposits
Long-term borrowings
Level 2 [Member]
Financial assets:
Securities held to maturity	30,305	45,228
Loans, non-covered	582,538	557,675
Financial liabilities:
Interest bearing deposits	824,895	872,920
Long-term borrowings	81,014	54,569
Level 3 [Member]
Financial assets:
Loans, non-covered	8,543	11,513
Loans, covered	88,693	96,024
FDIC indemnification asset	10,557	17,477
Carrying Value [Member]
Financial assets:
Securities held to maturity	28,563	42,283
Loans, non-covered	585,729	562,562
Loans, covered	72,791	84,153
FDIC indemnification asset	25,409	33,837
Financial liabilities:
Interest bearing deposits	822,209	896,340
Long-term borrowings	81,249	53,952
Estimated Fair Value [Member]
Financial assets:
Securities held to maturity	30,305	45,228
Loans, non-covered	591,081	569,188
Loans, covered	88,693	96,024
FDIC indemnification asset	10,557	17,477
Financial liabilities:
Interest bearing deposits	824,895	872,920
Long-term borrowings	$ 81,014	$ 54,569

XML

Parent Corporation Only Financial Statements - Parent Company Only Statements of Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended												12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income:
Interest and dividend income	$ 12,217	$ 13,171	$ 12,491	$ 12,166	$ 12,919	$ 12,872	$ 14,119	$ 13,809	$ 13,877	$ 14,272	$ 14,492	$ 13,394	$ 50,045	$ 53,719	$ 56,035
Expenses:
Interest expense	1,644	1,749	1,791	1,894	2,054	2,339	2,587	2,712	2,864	2,974	3,079	3,311	7,078	9,692	12,228
Bad debt					450		500	250				1,498		1,200	1,498
Other operating expenses													2,247	1,863	1,903
Income tax benefit	(461)	(800)	(673)	(563)	(448)	(837)	(473)	(390)	(239)	(532)	(127)	838	(2,497)	(2,148)	(60)
Net income	1,193	1,782	1,607	1,324	1,573	1,809	1,210	990	695	1,422	521	(1,194)	5,906	5,582	1,444
Parent Company [Member]
Income:
Interest and dividend income
Dividends received from subsidiaries													7,820	3,048
Gains on sale of securities, net
Other operating income													4	11	6
Total income													7,824	3,059	6
Expenses:
Interest expense													137	180	205
Management fee paid to subsidiaries													144	138	166
Stock option expense													5	(54)	62
Bad debt															(17)
Bank franchise taxes													236	180	182
Professional and legal expenses													112	129	102
Other operating expenses													74	(160)	209
Total expenses													708	413	909
Equity in income / (loss) of subsidiaries													(1,449)	2,778	2,040
Net income before income taxes													5,667	5,424	1,137
Income tax benefit													239	158	307
Net income													$ 5,906	$ 5,582	$ 1,444

XML

Other Intangibles (Tables)

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Other Intangible Assets

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

	December 31, 2013			December 31, 2012
Core deposit intangibles	$	20,290		$	20,290
Accumulated amortization		(12,196	)		(9,994	)
Reduction due to sale of deposits		(1,473	)		—
Balance	$	6,621		$	10,296

XML

Trust Preferred Capital Notes

12 Months Ended

Dec. 31, 2013

Brokers And Dealers [Abstract]

Trust Preferred Capital Notes

Note 22. Trust Preferred Capital Notes

On December 12, 2003, BOE Statutory Trust I, a wholly-owned subsidiary of the Company, was formed for the purpose of issuing redeemable capital securities. On December 12, 2003, $4.124 million of trust preferred securities were issued through a direct placement. The securities have a LIBOR-indexed floating rate of interest. The average interest rate at December 31, 2013, 2012 and 2011 was 3.28%, 3.57%, and 3.43%, respectively. The securities have a mandatory redemption date of December 12, 2033 and are subject to varying call provisions which began December 12, 2008. The principal asset of the Trust is $4.124 million of the Company’s junior subordinated debt securities with the like maturities and like interest rates to the capital securities.

The trust preferred notes may be included in tier 1 capital for regulatory capital adequacy determination purposes up to 25% of tier 1 capital after its inclusion. The portion of the trust preferred not considered as tier 1 capital may be included in tier 2 capital. At December 31, 2013, all trust preferred notes were included in tier 1 capital.

The obligations of the Company with respect to the issuance of the capital securities constitute a full and unconditional guarantee by the Company of the Trust’s obligations with respect to the capital securities.

Subject to certain exceptions and limitations, the Company may elect from time to time to defer interest payments on the junior subordinated debt securities, which would result in a deferral of distribution payments on the related capital securities. During 2011, the Company accrued and elected to defer $143,000 in total interest payments related to its trust preferred notes, respectively. On March 16, 2012, the Company paid all of its previously deferred interest payments and the interest payment that would have been due on March 31, 2012. Accordingly, the Company is current in its obligations under the trust preferred notes.

XML

Fair Values of Assets and Liabilities

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Values of Assets and Liabilities

Note 21. 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. FASB 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 FASB ASC 825 elections as of December 31, 2013.

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).

	December 31, 2013
	Total		Level 1		Level 2		Level 3
Investment securities available for sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	98,987	$	94,935	$	4,052	$	—
U.S. Gov’t sponsored agencies		486		—		486		—
State, county, and municipal		134,096		2,482		131,614		—
Corporate and other bonds		6,349		—		6,349		—
Mortgage backed – U.S. Gov’t agencies		3,439		—		3,439		—
Mortgage backed – U.S. Gov’t sponsored agencies		22,420		2,531		19,889		—
Total investment securities available for sale		265,777		99,948		165,829		—
Loans held for sale		100		—		100		—
Total assets at fair value	$	265,877	$	99,948	$	165,929	$	—
Total liabilities at fair value	$	—	$	—	$	—	$	—

	December 31, 2012
	Total		Level 1		Level 2		Level 3
Investment securities available for sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	153,277	$	153,277	$	—	$	—
U.S. Gov’t sponsored agencies		503		—		503		—
State, county and municipal		117,596		6,742		110,854		—
Corporate and other bonds		7,618		1,009		6,609		—
Mortgage backed – U.S. Gov’t agencies		15,560		—		15,560		—
Mortgage backed – U.S. Gov’t sponsored agencies		14,524		—		14,524		—
Total investment securities available for sale		309,078		161,028		148,050		—
Loans held for sale		1,266		—		1,266		—
Total assets at fair value	$	310,344	$	161,028	$	149,316	$	—
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 sale

The carrying amounts of loans held for sale 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. The following table presents assets measured at fair value on a nonrecurring basis for the periods ended December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013
	Total		Level 1		Level 2		Level 3
Impaired loans, non-covered	$	10,334	$	—	$	1,791	$	8,543
Other real estate owned (OREO), non-covered		6,244		—		—		6,244
Other real estate owned (OREO), covered		2,692		—		—		2,692
Total assets at fair value	$	19,270	$	—	$	1,791	$	17,479
Total liabilities at fair value	$	—	$	—	$	—	$	—

	December 31, 2012
	Total		Level 1		Level 2		Level 3
Impaired loans, non-covered	$	15,552	$	—	$	4,039	$	11,513
Other real estate owned (OREO), non-covered		10,793		—		—		10,793
Other real estate owned (OREO), covered		3,370		—		—		3,370
Total assets at fair value	$	29,715	$	—	$	4,039	$	25,676
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 December 31, 2013 and 2012, 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.

	December 31, 2013
(dollars in thousands)	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Securities held to maturity	$	28,563	$	30,305	$	—	$	30,305	$	—
Loans, non-covered		585,729		591,081		—		582,538		8,543
Loans, covered		72,791		88,693		—		—		88,693
FDIC indemnification asset		25,409		10,557		—		—		10,557
Financial liabilities:
Interest bearing deposits		822,209		824,895		—		824,895		—
Long-term borrowings		81,249		81,014		—		81,014		—

	December 31, 2012
(dollars in thousands)	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Securities held to maturity	$	42,283	$	45,228	$	—	$	45,228	$	—
Loans, non-covered		562,562		569,188		—		557,675		11,513
Loans, covered		84,153		96,024		—		—		96,024
FDIC indemnification asset		33,837		17,477		—		—		17,477
Financial liabilities:
Interest bearing deposits		896,340		872,920		—		872,920		—
Long-term borrowings		53,952		54,569		—		54,569		—

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 December 31, 2013. The Company applied the provisions of FASB 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)

The fair value 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. The fair value of impaired loans is consistent with the methodology used for the FASB ASC 820 disclosure for assets recorded at fair value on a nonrecurring basis presented above.

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.

Federal funds purchased

The carrying amount of federal funds purchased approximates fair value.

Long-term borrowings

The fair values of the Company’s long-term borrowings (FHLB advances and trust preferred capital notes) 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 amount 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.

XML

Employee Benefit Plans - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Defined Benefit Plan Disclosure [Line Items]
Minimum eligibility criteria of full-time pre-merger bank employees for Bank of Essex noncontributory defined benefit pension plan	21 years
Accumulated benefit obligation for the defined benefit pension plan	$ 4,700,000	$ 5,800,000
Targeted asset allocation	100.00%	100.00%
Amounts charged to expense under plans	472,000	473,000	332,000
Deferred compensation expense	$ 124,000	$ 99,000	$ 107,000
Combined BOE 401(k) and TFC 401(k) Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Employee's contribution of compensation, subject to statutory limitations	100.00%
Company's first matching employee contributions	100.00%
Maximum matching contribution per employee based on employee compensation, percent	50.00%
Employee's contribution on first compensation	3.00%
Employee's contribution of compensation percent	2.00%
Fixed Income Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Targeted asset allocation	40.00%
Mutual Funds - Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Targeted asset allocation	60.00%	61.00%

XML

Other Noninterest Expense (Tables)

12 Months Ended

Dec. 31, 2013

Other Income And Expenses [Abstract]

Summary of Other Noninterest Expense

Other noninterest expense totals are presented in the following tables.  

	December 31
(dollars in thousands)	2013		2012		2011
Bank franchise tax	$	513	$	466	$	552
Telephone and internet line		699		777		789
Stationery, printing and supplies		453		504		654
Exam fees		529		569		776
Directors fees		413		422		530
Credit expense		707		948		1,008
Other expenses		2,247		1,863		1,903
Total other operating expenses	$	5,561	$	5,549	$	6,212

XML

Deposits (Tables)

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Summary of Interest Bearing Deposits

The following table presents interest-bearing deposits by type at December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013		December 31, 2012
NOW	$	102,111	$	142,923
MMDA		94,170		113,171
Savings		75,159		77,506
Time deposits less than $100,000		235,482		287,422
Time deposits $100,000 and over		315,287		275,318
Total interest-bearing deposits	$	822,209	$	896,340

Scheduled Maturities of Time Deposits

The scheduled maturities of time deposits at December 31, 2013 are as follows (dollars in thousands):

2014	$	316,584
2015		135,836
2016		64,255
2017		17,864
2018		15,388
2019		842
Total	$	550,769

XML

Lease Commitments

12 Months Ended

Dec. 31, 2013

Leases [Abstract]

Lease Commitments

Note 23. Lease Commitments

The following table represents a summary of non-cancelable operating leases for bank premises that have initial or remaining terms in excess of one year as of December 31, 2013 (dollars in thousands):

2014	$	758
2015		694
2016		650
2017		597
2018		583
Thereafter		2,942
Total of future payments	$	6,224

Rent expense for the years ended December 31, 2013, 2012 and 2011 was $621,000, $659,000, and $695,000, respectively.

XML

Other Noninterest Expense

12 Months Ended

Dec. 31, 2013

Other Income And Expenses [Abstract]

Other Noninterest Expense

Note 24. Other Noninterest Expense

Other noninterest expense totals are presented in the following tables. Components of these expenses exceeding 1.0% of the aggregate of total net interest income and total noninterest income for any of the past three years are stated separately.

	December 31
(dollars in thousands)	2013		2012		2011
Bank franchise tax	$	513	$	466	$	552
Telephone and internet line		699		777		789
Stationery, printing and supplies		453		504		654
Exam fees		529		569		776
Directors fees		413		422		530
Credit expense		707		948		1,008
Other expenses		2,247		1,863		1,903
Total other operating expenses	$	5,561	$	5,549	$	6,212

XML

Nature of Banking Activities and Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Nature of Banking Activities and Significant Accounting Policies

Note 1. Nature of Banking Activities and Significant Accounting Policies

Organization

Community Bankers Trust Corporation (the “Company”) is a bank holding company that was incorporated in 2005. The Company is headquartered in Glen Allen, Virginia and is the holding company for Essex Bank (the “Bank”), a Virginia state bank with 19 full-service offices in Virginia and Maryland. The Bank also operates two loan production offices in Virginia.

The Bank was established in 1926. 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, and six are located in Maryland along the Baltimore-Washington corridor.

Prior to November 8, 2013, the Bank also had four full-service offices in Georgia. The Bank sold those offices and related deposits to Community & Southern Bank on November 8, 2013. See Note 29 for additional information.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and the Bank, its wholly-owned subsidiary. All material intercompany balances and transactions have been eliminated in consolidation. Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 810, Consolidation, requires that the Company no longer eliminate through consolidation the equity investment in BOE Statutory Trust I, which was $124,000 at December 31, 2013 and 2012. The subordinated debt of the Trust is reflected as a liability of the Company.

Cash and Cash Equivalents

For purposes of the consolidated statements of cash flows, the Company has defined cash and cash equivalents as cash and due from banks, interest-bearing bank balances, and federal funds sold.

Restricted Cash

The Bank is required to maintain a reserve against its deposits in accordance with Regulation D of the Federal Reserve Act. For the final weekly reporting period, the aggregate amount of daily average required reserves was $9.4 million and $9.6 million for each of the years ended December 31, 2013 and 2012, respectively.

Securities

Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Securities not classified as held to maturity, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income.

Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other than temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are determined using the specific identification method.

Restricted Securities

The Company is required to maintain an investment in the capital stock of certain correspondent banks. The Company’s investment in these securities is recorded at cost.

Loans Held for Sale

Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated market in the aggregate. Net unrealized losses are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are sold with the mortgage servicing rights released by the Company.

The Company enters into commitments to originate certain mortgage loans whereby the interest rate on the loans is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. The period of time between issuance of a loan commitment and closing and the sale of the loan generally ranges from thirty to ninety days. The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Company is not exposed to losses nor will it realize significant gains related to its rate lock commitments due to changes in interest rates. The correlation between the rate lock commitments and the best efforts contracts is very high due to their similarity. Because of this high correlation, the gain or loss that occurs on the rate lock commitments is immaterial.

Loans

The Bank grants mortgage, commercial and consumer loans to customers. A significant portion of the loan portfolio is represented by 1-4 family residential and commercial mortgage loans. The ability of the Bank’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in the Bank’s market area.

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method.

The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Consumer loans are typically charged off no later than 180 days past due. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

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 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, it is probable that the Company 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, 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 Bank does not separately identify individual consumer and residential loans for impairment disclosures.

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 Suburban Federal Savings Bank (SFSB) acquisition (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, Loans and Debt Securities Acquired with Deteriorated Credit Quality (formerly SOP 03-3), 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 acquisition. The Company has grouped loans together based on common risk characteristics including product type, delinquency status and loan documentation requirements among others.

The covered loans acquired are subject to credit review standards described above for non-covered loans. If and when credit deterioration occurs subsequent to the acquisition date, a provision for credit loss for covered loans will be charged to earnings for the full amount without regard to the shared-loss agreements.

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 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 allowance for loan loss. 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.

Bank Premises and Equipment

Bank premises and equipment are stated at cost less accumulated depreciation. Land is carried at cost. Depreciation of bank premises and equipment is computed on the straight-line method over estimated useful lives of 10 to 50 years for premises and 3 to 20 years for equipment, furniture and fixtures.

Costs of maintenance and repairs are charged to expense as incurred and major improvements are capitalized. Upon sale or retirement of depreciable properties, the cost and related accumulated depreciation are eliminated from the accounts and the resulting gain or loss is included in the determination of income.

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 selling 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. The Company had $6.2 million and $10.8 million in other real estate, non-covered at December 31, 2013 and 2012, respectively, and $2.7 million and $3.4 million in other real estate, covered at December 31, 2013 and 2012 respectively.

Other Intangibles

FASB ASC 805, Business Combinations, requires that the purchase method of accounting be used for all business combinations after June 30, 2001. With purchase acquisitions, the Company is required to record assets acquired, including any intangible assets, and liabilities assumed at fair value, which involves relying on estimates based on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analysis or other valuation methods. The Company records intangibles under FASB ASC 350, which states that 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 Company followed FASB ASC 350 and determined that any core deposit intangibles will be amortized over the estimated useful life. Core deposit intangibles are evaluated for impairment in accordance with FASB ASC 350.

Advertising Costs

The Company follows the policy of expensing advertising costs as incurred, which totaled $384,000, $336,000, and $329,000 for 2013, 2012, and 2011, respectively.

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 income. 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 that 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.

The Company and its subsidiaries are subject to U. S. federal income tax as well as various state income taxes. Years 2010 through 2013 are open to examination by the respective tax authorities.

Earnings Per Share

Basic earnings per share (EPS) is computed based on the weighted average number of shares outstanding and excludes any dilutive effects of options, warrants and convertible securities. Diluted EPS is computed in a manner similar to basic EPS, except for certain adjustments to the numerator and the denominator. Diluted EPS gives effect to all dilutive potential common shares that were outstanding at the end of the period. Potential common shares that may be issued by the Company relate solely to outstanding stock options and warrants and are determined using the treasury stock method. The Company declared and paid $885,000, $2.2 million, and $0 in dividends on preferred stock in 2013, 2012, and 2011, respectively.

Stock-Based Compensation

In April 2009, the Company adopted the Community Bankers Trust Corporation 2009 Stock Incentive Plan which is authorized to issue up to 2,650,000 shares of common stock. See Note 14 for details regarding these plans.

Recent Accounting Pronouncements

In January 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-04, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40) — Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. Although current guidance indicates that a creditor should reclassify a collateralized mortgage loan as other real estate owned when it determines that there has been in substance a repossession or foreclosure by the creditor, that is, the creditor receives physical possession of the debtor’s assets regardless of whether formal foreclosure proceedings take place, the terms in substance a repossession or foreclosure and physical possession are not defined in the accounting literature. This has resulted in diversity about when a creditor should derecognize the loan receivable and recognize the real estate property. The objective of the amendments in this Update is to reduce diversity by clarifying when an in substance repossession or foreclosure occurs. The amendments state that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments are effective for public business entities for annual periods and interim periods within those annual periods beginning after December 15, 2014. Early adoption is permitted. The Company currently records foreclosures in accordance with this guidance; therefore, no changes are necessary for adoption.

Also in January 2014, the FASB issued ASU No. 2014-01, Investments — Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force). The amendments in this ASU apply to all reporting entities that invest in qualified affordable housing projects through limited liability entities that are flow through entities for tax purposes. Currently, an investor that invests in a qualified affordable housing project may elect to account for that investment using the effective yield method. Those not electing the effective yield method would account for the investment using the equity method or cost method. The Task Force received stakeholder feedback indicating that certain of the required conditions for the effective yield method are overly restrictive and thus prevent many investments in qualified affordable housing projects from qualifying for the use of this method. Those stakeholders stated that presenting the investment performance net of taxes as a component of income tax expense (benefit) as prescribed by the effective yield method more fairly represents the economics and provides users with a better understanding of the returns from such investments than the equity or cost methods.

The amendments in this ASU eliminate the effective yield election and permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). Those not electing the proportional amortization method would account for the investment using the equity method or cost method. The decision to apply the proportional amortization method of accounting is an accounting policy decision that should be applied consistently to all qualifying affordable housing project investments rather than a decision to be applied to individual investments. A reporting entity should disclose information that enables users of its financial statements to understand the nature of its investments in qualified affordable housing projects, and the effect of the measurement of its investments in qualified affordable housing projects and the related tax credits on its financial position and results of operations. The amendments in this ASU should be applied retrospectively to all periods presented. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). U.S. GAAP does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets.

The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. Retrospective application is permitted. The Company currently presents these tax items in accordance with this guidance; therefore, no changes are necessary for adoption.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of other real estate owned, projected cash flows relating to certain acquired loans, the value of the indemnification asset, and the valuation of deferred tax assets.

Reclassifications

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

XML

Parent Corporation Only Financial Statements

12 Months Ended

Dec. 31, 2013

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Parent Corporation Only Financial Statements

Note 25. Parent Corporation Only Financial Statements

COMMUNITY BANKERS TRUST CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS

AS OF DECEMBER 31, 2013 and 2012

(dollars in thousands)

	2013			2012
Assets
Cash	$	323		$	838
Other assets		1,711			1,470
Investments in subsidiaries		108,789			117,176
Total assets	$	110,823		$	119,484
Liabilities
Other liabilities	$	40		$	42
Balances due to subsidiary bank		—			1
Balances due to non-bank subsidiary		4,124			4,124
Total liabilities		4,164			4,167
Stockholders’ Equity
Preferred stock (5,000,000 shares authorized, $0.01 par value) 10,680 and 17,680 issued and outstanding, respectively		10,680			17,680
Warrants on preferred stock		1,037			1,037
Discount on preferred stock		—			(234	)
Common stock (200,000,000 shares authorized $0.01 par value; 21,709,096 and 21,670,212 shares issued and outstanding, respectively)		217			217
Additional paid in capital		144,656			144,398
Retained earnings		(45,822	)		(50,609	)
Accumulated other comprehensive income		(4,109	)		2,828
Total stockholders’ equity	$	106,659		$	115,317
Total liabilities and stockholders’ equity	$	110,823		$	119,484

COMMUNITY BANKERS TRUST CORPORATION

PARENT COMPANY ONLY STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 and 2011

(dollars in thousands)

	2013			2012			2011
Income:
Interest and dividend income	$	—		$	—		$	—
Dividends received from subsidiaries		7,820			3,048			—
Gains on sale of securities, net		—			—			—
Other operating income		4			11			6
Total income		7,824			3,059			6
Expenses:
Interest expense		137			180			205
Management fee paid to subsidiaries		144			138			166
Stock option expense		5			(54	)		62
Bad debt		—			—			(17	)
Bank franchise taxes		236			180			182
Professional and legal expenses		112			129			102
Other operating expenses		74			(160	)		209
Total expenses		708			413			909
Equity in income / (loss) of subsidiaries		(1,449	)		2,778			2,040
Net income before income taxes		5,667			5,424			1,137
Income tax benefit		239			158			307
Net income	$	5,906		$	5,582		$	1,444

COMMUNITY BANKERS TRUST CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 and 2011

(dollars in thousands)

	2013			2012			2011
Operating activities:
Net income	$	5,906		$	5,582		$	1,444
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Issuance of common stock and stock options		258			156			245
Undistributed equity in loss (income) of subsidiary		1,449			(2,778	)		(2,040	)
(Increase) decrease in other assets		(241	)		(194	)		95
(Decrease) increase in other liabilities, net		(2	)		(239	)		171
Provision for loan loss		—			—			(17	)
Net cash and cash equivalents provided by (used in) operating activities		7,370			2,527			(102	)
Investing activities:
Recovery of bad debt		—			—			17
Net cash and cash equivalents provided by investing activities		—			—			17
Financing activities:
Repurchase of preferred stock		(7,000	)		—			—
Cash dividends paid		(885	)		(2,210	)		—
Net cash and cash equivalents used in financing activities		(7,885	)		(2,210	)		—
(Decrease) increase in cash and cash equivalents		(515	)		317			(85	)
Cash and cash equivalents at beginning of the period		838			521			606
Cash and cash equivalents at end of the period	$	323		$	838		$	521

XML

FDIC Agreements and FDIC Indemnification Asset - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013
Fdic Agreements And Fdic Indemnification Asset [Abstract]
Purchase and assumption agreement date with the FDIC	Jan. 30, 2009
Percentage of losses reimbursed by FDIC to bank arising from covered loans and foreclosed real estate assets	80.00%
Losses on covered loans and foreclosed real estate assets	$ 118,000,000
Percentage of losses reimbursed by FDIC to bank on covered loans and foreclosed real estate assets thereafter	95.00%
FDIC indemnification asset for non single family assets	213,000
Estimated losses for covered non single family asset	$ 79,000

XML

Stock Option Plans - Summary of Options Outstanding (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Options number of shares	230,000
Forfeited, Options number of shares	(31,750)
Exercised, Options number of shares		0	0
2009 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Options number of shares, Beginning Balance	412,000
Granted, Options number of shares	230,000
Forfeited, Options number of shares	(31,750)
Expired, Options number of shares
Exercised, Options number of shares	(5,000)
Outstanding options number of shares, Ending Balance	605,250
Options outstanding and exercisable at end of the year, options number of shares	195,313
Weighted average remaining contractual life for outstanding and exercisable shares at year end	87 months
Options outstanding, Aggregate Intrinsic Value	$ 992,618
Options outstanding and exercisable, Aggregate Intrinsic value	352,849
Weighted Average Exercise Price, Beginning Balance	$ 1.74
Granted, Weighted Average Exercise Price	$ 2.86
Forfeited, Weighted Average Exercise Price	$ 2.65
Expired, Weighted Average Exercise Price
Exercised, Weighted Average Exercise Price	$ 1.25
Weighted Average Exercise Price, Ending Balance	$ 2.12
Options outstanding and exercisable at end of the year, weighted average exercise price	$ 1.95
Options outstanding and exercisable at end of the year, weighted average exercise price	$ 1.95
TFC and BOE Stock Option Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Options number of shares, Beginning Balance	91,078
Granted, Options number of shares
Forfeited, Options number of shares	(1,896)
Expired, Options number of shares	(49,048)
Exercised, Options number of shares
Outstanding options number of shares, Ending Balance	40,134
Options outstanding and exercisable at end of the year, options number of shares	40,134
Weighted average remaining contractual life for outstanding and exercisable shares at year end	10 months
Options outstanding and exercisable, Aggregate Intrinsic value	$ 0	$ 0	$ 0
Weighted Average Exercise Price, Beginning Balance	$ 5.36
Forfeited, Weighted Average Exercise Price	$ 5.01
Expired, Weighted Average Exercise Price	$ 5.72
Weighted Average Exercise Price, Ending Balance	$ 4.94
Options outstanding and exercisable at end of the year, weighted average exercise price	$ 4.94
Options outstanding and exercisable at end of the year, weighted average exercise price	$ 4.94

XML

Loans Covered by FDIC Shared-Loss Agreements (Covered Loans) and Related Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Summary of Covered Loans

As of December 31, 2013 and 2012, the outstanding contractual balance of the covered loans was $117.0 million and $137.2 million, respectively. The carrying amount, by loan type, as of these dates is as follows (dollars in thousands):

	December 31, 2013					December 31, 2012
	Amount		% of Covered Loans			Amount		% of Covered Loans
Mortgage loans on real estate:
Residential 1-4 family	$	64,610		88.18	%	$	74,046		87.47	%
Commercial		1,389		1.90			1,986		2.35
Construction and land development		2,940		4.01			3,264		3.86
Second mortgages		3,898		5.32			4,864		5.75
Multifamily		266		0.36			304		0.36
Agriculture		172		0.23			172		0.20
Total real estate loans		73,275		100.00	%		84,636		99.99	%
Commercial loans		—		—			—		—
Consumer installment loans		—		—			1		0.01
All other loans		—		—			—		—
Total covered loans	$	73,275		100.00	%	$	84,637		100.00	%

Allowance for Loan Losses on Covered Loans by Loan Category

There was no activity in the allowance for loan losses on covered loans for the year ended December 31, 2013. Activity in the allowance for loan losses on covered loans for the years ended December 31, 2012 and 2011, was comprised of the following (dollars in thousands):

	December 31, 2011		Provision Allocation			Charge offs			Recoveries		December 31, 2012
Mortgage loans on real estate:
Residential 1-4 family	$	473	$	(218	)	$	(12	)	$	9	$	252
Commercial		303		(71	)		—			—		232
Construction and land development		—		4			(22	)		18		—
Multifamily		—		35			(315	)		280		—
Total real estate loans		776		(250	)		(349	)		307		484
Total covered loans	$	776	$	(250	)	$	(349	)	$	307	$	484

	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
Total real estate loans		829		—		(53	)		—		776
Total covered loans	$	829	$	—	$	(53	)	$	—	$	776

Summary of Covered Loans Collectively Evaluated for Impairment in the Allowance for Loan Losses

The following table presents information on the covered loans collectively evaluated for impairment in the allowance for loan losses at December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013				December 31, 2012
	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	$	252	$	64,610	$	252	$	74,046
Commercial		232		1,389		232		1,986
Construction and land development		—		2,940		—		3,264
Second mortgages		—		3,898		—		4,864
Multifamily		—		266		—		304
Agriculture		—		172		—		172
Total real estate loans		484		73,275		484		84,636
Commercial loans		—		—		—		—
Consumer installment loans		—		—		—		1
All other loans		—		—		—		—
Total covered loans	$	484	$	73,275	$	484	$	84,637

Summary of Changes in the Accretable Yield

The change in the accretable yield balance since January 1, 2011 is as follows:

Balance at January 1, 2011	$	75,718
Accretion		(17,525	)
Reclassification from (to) nonaccretable yield		(1,883	)
Balance at December 31, 2011		56,310
Accretion		(14,105	)
Reclassification from (to) nonaccretable yield		11,939
Balance at December 31, 2012		54,144
Accretion		(11,936	)
Reclassification from (to) nonaccretable yield		9,307
Balance at December 31, 2013	$	51,515

XML

Minimum Regulatory Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Summary of the Company's and the Banks Actual Capital Amounts and Ratios

The Company’s and the Bank’s actual capital amounts and ratios are presented in the following table (dollars in thousands).

	Actual					Required for Capital Adequacy Purposes					Required in Order to be Well Capitalized Under Prompt Corrective Action
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2013:
Total Capital to risk weighted assets
Company	$	113,805		16.82	%	$	54,124		8.00	%		NA		NA
Bank		113,624		16.79	%		54,132		8.00	%		67,666		10.00	%
Tier 1 Capital to risk weighted assets
Company		105,672		15.62	%		27,062		4.00	%		NA		NA
Bank		105,489		15.59	%		27,066		4.00	%		40,599		6.00	%
Tier 1 Capital to adjusted average total assets
Company		105,672		9.52	%		44,396		4.00	%		NA		NA
Bank		105,489		9.50	%		44,402		4.00	%		55,503		5.00	%
As of December 31, 2012:
Total Capital to risk weighted assets
Company	$	112,463		16.99	%	$	52,969		8.00	%		NA		NA
Bank		111,687		16.87	%		52,971		8.00	%		66,214		10.00	%
Tier 1 Capital to risk weighted assets
Company		104,521		15.79	%		26,485		4.00	%		NA		NA
Bank		103,745		15.67	%		26,486		4.00	%		39,728		6.00	%
Tier 1 Capital to adjusted average total assets
Company		104,521		9.41	%		44,444		4.00	%		NA		NA
Bank		103,745		9.34	%		44,449		4.00	%		55,561		5.00	%

XML

Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) and Related Allowance for Loan Losses - Age Analysis of Past Due Status of Non-Covered Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	$ 1,870	$ 1,856
90 Days Past Due	12,105	21,557
Total Past Due	13,975	23,413
Current	582,362	552,217
Total Loans	596,337	575,630
Recorded Investment 90 Days and Accruing		509
Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	1,697	1,731
90 Days Past Due	11,923	21,095
Total Past Due	13,620	22,826
Current	473,898	466,514
Total Loans	487,518	489,340
Recorded Investment 90 Days and Accruing		509
Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	115	85
90 Days Past Due	127	385
Total Past Due	242	470
Current	101,519	77,365
Total Loans	101,761	77,835
Consumer Installment Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	58	40
90 Days Past Due	55	77
Total Past Due	113	117
Current	5,510	6,812
Total Loans	5,623	6,929
All Other Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	1,435	1,526
Total Loans	1,435	1,526
Residential 1-4 Family [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	1,455	1,433
90 Days Past Due	4,229	5,797
Total Past Due	5,684	7,230
Current	136,290	128,190
Total Loans	141,974	135,420
Recorded Investment 90 Days and Accruing		235
Commercial [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days Past Due	1,382	5,818
Total Past Due	1,382	5,818
Current	238,007	240,703
Total Loans	239,389	246,521
Construction and Land Development [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	242	298
90 Days Past Due	5,882	9,089
Total Past Due	6,124	9,387
Current	48,621	51,740
Total Loans	54,745	61,127
Recorded Investment 90 Days and Accruing		274
Second Mortgages [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days Past Due	225	141
Total Past Due	225	141
Current	6,144	7,089
Total Loans	6,369	7,230
Multifamily [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	35,774	28,683
Total Loans	35,774	28,683
Agriculture [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days Past Due	205	250
Total Past Due	205	250
Current	9,062	10,109
Total Loans	$ 9,267	$ 10,359

XML

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
ASSETS
Cash and due from banks	$ 10,857	$ 12,502
Interest bearing bank deposits	12,978	11,635
Total cash and cash equivalents	23,835	24,137
Securities available for sale, at fair value	265,777	309,078
Securities held to maturity, at cost (fair value of $30,305 and $45,228, respectively)	28,563	42,283
Equity securities, restricted, at cost	8,358	7,405
Total securities	302,698	358,766
Loans held for sale	100	1,266
Loans not covered by FDIC shared-loss agreements	596,173	575,482
Loans covered by FDIC shared-loss agreements	73,275	84,637
Total loans	669,448	660,119
Allowance for loan losses (non-covered loans of $10,444 and $12,920, respectively; covered loans of $484 and $484, respectively)	(10,928)	(13,404)
Net loans	658,520	646,715
FDIC indemnification asset	25,409	33,837
Bank premises and equipment, net	27,872	33,638
Other real estate owned, covered by FDIC shared-loss agreements	2,692	3,370
Other real estate owned, non-covered	6,244	10,793
Bank owned life insurance	20,795	15,146
FDIC receivable under shared-loss agreements	368	895
Core deposit intangibles, net	6,621	10,297
Other assets	14,378	14,428
Total assets	1,089,532	1,153,288
Deposits:
Noninterest bearing	70,132	77,978
Interest bearing	822,209	896,340
Total deposits	892,341	974,318
Federal funds purchased and securities sold under agreements to repurchase	6,000	5,412
Federal Home Loan Bank advances	77,125	49,828
Trust preferred capital notes	4,124	4,124
Other liabilities	3,283	4,289
Total liabilities	982,873	1,037,971
Commitment and Contingencies (Notes 16, 19 and 23)
STOCKHOLDERS' EQUITY
Preferred stock (5,000,000 shares authorized, $0.01 par value; 10,680 and 17,680 shares issued and outstanding, respectively)	10,680	17,680
Warrants on preferred stock	1,037	1,037
Discount on preferred stock		(234)
Common stock (200,000,000 shares authorized, $0.01 par value; 21,709,096 and 21,670,212 shares issued and outstanding, respectively)	217	217
Additional paid in capital	144,656	144,398
Retained deficit	(45,822)	(50,609)
Accumulated other comprehensive (loss) income	(4,109)	2,828
Total stockholders' equity	106,659	115,317
Total liabilities and stockholders' equity	$ 1,089,532	$ 1,153,288

XML

Accumulated Other Comprehensive (Loss) Income (Tables)

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Summary of Accumulated Other Comprehensive (Loss) Income

The following tables present activity net of tax in accumulated other comprehensive (loss) income (AOCI) for the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):

	Year ended December 31, 2013
	Unrealized Gain/Loss on Securities			Defined Benefit Pension Plan			Total Other Comprehensive (Loss) Income
Beginning balance	$	3,903		$	(1,075	)	$	2,828
Other comprehensive (loss) income before reclassifications		(7,515	)		1,394			(6,121	)
Amounts reclassified from AOCI		(342	)		(474	)		(816	)
Net current period other comprehensive loss		(7,857	)		920			(6,937	)
Ending balance	$	(3,954	)	$	(155	)	$	(4,109	)

	Year ended December 31, 2012
	Unrealized Gain/Loss on Securities			Defined Benefit Pension Plan			Total Other Comprehensive (Loss) Income
Beginning balance	$	3,257		$	(1,038	)	$	2,219
Other comprehensive (loss) income before reclassifications		1,631			(57	)		1,574
Amounts reclassified from AOCI		(985	)		20			(965	)
Net current period other comprehensive loss		646			(37	)		609
Ending balance	$	3,903		$	(1,075	)	$	2,828

	Year ended December 31, 2011
	Unrealized Gain/Loss on Securities			Defined Benefit Pension Plan			Total Other Comprehensive (Loss) Income
Beginning balance	$	(145	)	$	—		$	(145	)
Other comprehensive (loss) income before reclassifications		5,295			(1,573	)		3,722
Amounts reclassified from AOCI		(1,893	)		535			(1,358	)
Net current period other comprehensive loss		3,402			(1,038	)		2,364
Ending balance	$	3,257		$	(1,038	)	$	2,219

Effects of Reclassifications Out of AOCI

The following tables present the effects of reclassifications out of AOCI on line items of consolidated income for the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):

Details about AOCI Components	Amount Reclassified from AOCI									Affected Line Item in the Unaudited Consolidated Statement of Income
	Year ended
	December 31, 2013			December 31, 2012			December 31, 2011
Unrealized (gain) loss on securities available for sale	$	(518	)	$	(1,492	)	$	(2,868	)	Gain on securities transactions, net
		176			507			975		Income tax expense
	$	(342	)	$	(985	)	$	(1,893	)	Net of tax
Amortization of defined benefit pension items
Actuarial gain (loss)	$	1,462		$	(57	)	$	(1.573	)	(1)
Prior service cost		(68	)		—			—		(1)
		(474	)		20			535		Income tax expense
	$	920		$	(37	)	$	(1.038	)	Net of tax

(1) This other comprehensive income component is included in the computation of net periodic pension cost (See Note 12, “Employee Benefit Plans” for details).

XML

Income Taxes - Reconciliation of the Expected Income Tax Expense with the Reported Expense (Detail)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Statutory federal income tax rate	34.00%	34.00%	34.00%
(Reduction) Increase in taxes resulting from:
Municipal interest	(2.60%)	(2.00%)	(21.80%)
Bank owned life insurance income	(3.00%)	(2.70%)	(6.20%)
Other, net	1.30%	(1.50%)	(2.00%)
Effective tax rate	29.70%	27.80%	4.00%

XML

Parent Corporation Only Financial Statements - Parent Company Only Balance Sheets (Parenthetical) (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Condensed Financial Statements, Captions [Line Items]
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares issued	10,680	17,680
Preferred stock, shares outstanding	10,680	17,680
Common stock, shares authorized	200,000,000	200,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	21,709,096	21,670,212
Common stock, shares outstanding	21,709,096	21,670,212
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares issued	10,680	17,680
Preferred stock, shares outstanding	10,680	17,680
Common stock, shares authorized	200,000,000	200,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	21,709,096	21,670,212
Common stock, shares outstanding	21,709,096	21,670,212

XML

Stock Option Plans - Summary of Grants Shares Issued and Fair Market Value (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
February [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Issued			39,972
Fair Market Value			$ 1.23
March [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Issued	8,751		4,082
Fair Market Value	$ 3.37		$ 1.33
June [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Issued	9,096	15,925	115,040
Fair Market Value	$ 3.24	$ 2.04	$ 1.13
September [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Issued	8,073	13,477
Fair Market Value	$ 3.65	$ 2.41
December [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Issued	7,965	13,260
Fair Market Value	$ 3.70	$ 2.45

XML

Consolidated Statements of Changes in Stockholders' Equity (USD $) In Thousands	Total	Preferred Stock [Member]	Warrants [Member]	Discount on Preferred Stock [Member]	Common Stock [Member]	Additional Paid in Capital [Member]	Retained Deficit [Member]	Accumulated Other Comprehensive Income [Member]
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
Amortization of preferred stock warrants	206			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 (loss)	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
Amortization of preferred stock warrants	220			220			(220)
Issuance of common stock	99				1	98
Issuance of common stock, shares					42
Dividends paid on preferred stock	(2,210)						(2,210)
Issuance of stock options	57					57
Net income	5,582						5,582
Other comprehensive income (loss)	609							609
Ending Balance at Dec. 31, 2012	115,317	17,680	1,037	(234)	217	144,398	(50,609)	2,828
Ending Balance, shares at Dec. 31, 2012					21,670
Amortization of preferred stock warrants	234			234			(234)
Issuance of common stock	123					123
Issuance of common stock, shares					39
Dividends paid on preferred stock	(885)						(885)
Issuance of stock options	135					135
Redemption of preferred stock	(7,000)	(7,000)
Net income	5,906						5,906
Other comprehensive income (loss)	(6,937)							(6,937)
Ending Balance at Dec. 31, 2013	$ 106,659	$ 10,680	$ 1,037		$ 217	$ 144,656	$ (45,822)	$ (4,109)
Ending Balance, shares at Dec. 31, 2013					21,709

XML

Income Taxes - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Liability related to uncertain tax positions	$ 0
Taxable income projection years	3 years
Deferred tax valuation allowance	0
Auditing period by taxing authorities	2010 through 2013
Net operating loss carryforwards		$ 7,800,000
US state and federal income tax year open for examination ending year	2013
US state and federal income tax year open for examination beginning year	2010

XML

Preferred Stock - Additional Information (Detail) (USD $)	0 Months Ended	12 Months Ended
	Dec. 19, 2008	Dec. 31, 2013	Dec. 31, 2012
Class of Stock [Line Items]
Warrant period	10 years
Number of common stock shares covered under warrant	780,000
Warrant exercise, expiry date		Dec. 19, 2018
Common stock exercise price	3.40
Proceeds from Series A Preferred Stock and the Warrant	$ 17,680,000
Proceeds based on a relative fair value warrant	1,040,000
Preferred stock discount on issue			234,000
Preferred stock, par value		$ 0.01	$ 0.01
Preferred shares		10,680	17,680
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock	17,680
Cumulative dividends rate on preferred stock	5.00%
Cumulative dividends rate on preferred stock thereafter	9.00%
Proceeds based on a relative fair value Series A Preferred Stock	16,640,000
Preferred stock estimated life	50 years
Discount rate	12.00%
Preferred stock discount on issue	1,040,000
Redemption price	17,680,000
Preferred stock discount amortization period	5 years
Liquidation preference of Series A Preferred Stock	$ 1,000
Preferred stock, par value	$ 0
Redemption price without accrued and unpaid dividends per share	$ 1,000
Dividend arrears period	6
Number of directors will be appointed by preferred holders in case of failure of payment of dividend	2
Number of shares repurchased		7,000
Preferred shares		17,680
Payment of treasury shares		$ 7,000,000
Percentage of preferred stock par value repurchased		100.00%
Warrant [Member]
Class of Stock [Line Items]
Stock price volatility	27.50%
Dividend yield	0.50%
Risk-free rate	1.35%
Expected life	5 years

XML

Branch Sale - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Nov. 08, 2013 Branch	Oct. 25, 2013 Pinnacle Bank [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of branches sold		4
Transfer of deposit		$ 193,170,000
Deposit premium	2,600,000	2,600,000
Certain fixed assets sold, fair value		5,200,000
Accumulated depreciation on fixed assets sold		1,200,000
Intangible assets to customer & deposits		1,500,000
Transfer of Loans		20,000
Date of completion of branch sale	Nov. 08, 2013
Premium on selling			1.00%
Loans sold			24,345,000
Net gain on transaction	255,000
Core deposit intangible assets	1,500,000
Loss on sale of fixed assets	827,000
Gain on sale of loans	243,000
Transaction related cost	$ 258,000

XML

Branch Sale (Tables)

12 Months Ended

Dec. 31, 2013

Deposits [Member]

Summary of Deposits Related to Branch Sale

The following table summarizes deposits related to the Branch Sale (dollars in thousands):

Deposits
Noninterest bearing	$	15,869
Interest bearing		177,301
Total deposits	$	193,170

Loans Receivable [Member]

Summary of Deposits Related to Branch Sale

The following summarizes the loans related to the Loan Sale (dollars in thousands):

Mortgage loans on real estate:
Residential 1-4 family	$	2,240
Commercial		15,762
Construction and land development		2,895
Second mortgages		41
Multifamily		1,802
Agriculture		—
Total real estate loans		22,740
Commercial loans		1,147
Consumer installment loans		424
All other loans		—
Gross loans		24,311
Net deferred costs		34
Total loans	$	24,345

XML

Borrowings - Maturities of Fixed Rate Long-Term Debt (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Debt Disclosure [Abstract]
2014	$ 30,000
2015	20,000
2016	10,000
2017	5,000
2018
Thereafter	12,125
Total	$ 77,125

XML

Quarterly Data (Unaudited)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Quarterly Data (Unaudited)

Note 28. Quarterly Data (unaudited)

	Year Ended December 31
	2013								2012
	First		Second		Third		Fourth		First			Second		Third		Fourth
Interest and dividend income	$	12,166	$	12,491	$	13,171	$	12,217	$	13,809		$	14,119	$	12,872	$	12,919
Interest expense		1,894		1,791		1,749		1,644		2,712			2,587		2,339		2,054
Net interest income		10,272		10,700		11,422		10,573		11,097			11,532		10,533		10,865
Provision for loan losses		—		—		—		—		250			500		—		450
Net interest income after provision for loan losses		10,272		10,700		11,422		10,573		10,847			11,032		10,533		10,415
Noninterest income		1,326		1,338		593		1,467		975			1,462		2,470		1,299
Noninterest expenses		9,711		9,758		9,433		10,386		10,442			10,811		10,357		9,693
Income (loss) before income taxes		1,887		2,280		2,582		1,654		1,380			1,683		2,646		2,021
Income tax expense (benefit)		563		673		800		461		390			473		837		448
Net income (loss)	$	1,324	$	1,607	$	1,782	$	1,193	$	990		$	1,210	$	1,809	$	1,573
Dividends paid on preferred stock		221		221		208		235		221			221		221		221
Accretion of discount on preferred stock		58		59		73		44		55			55		55		55
Accumulated preferred dividends		—		—		—		—		—			—		—		—
Net income (loss) available to common shareholders	$	1,045	$	1,327	$	1,501	$	914	$	714		$	934	$	1,533	$	1,297
Earnings (loss) per common share, basic	$	0.05	$	0.06	$	0.07	$	0.04	$	0.03		$	0.04	$	0.07	$	0.06
Earnings (loss) per common share, diluted	$	0.05	$	0.06	$	0.07	$	0.04	$	0.03		$	0.04	$	0.07	$	0.06
									2011
									First			Second		Third		Fourth
Interest and dividend income									$	13,394		$	14,492	$	14,272	$	13,877
Interest expense										3,311			3,079		2,974		2,864
Net interest income										10,083			11,413		11,298		11,013
Provision for loan losses										1,498			—		—		—
Net interest income after provision for loan losses										8,585			11,413		11,298		11,013
Noninterest income										2,430			973		3,355		1,476
Noninterest expenses										13,047			11,738		12,699		11,555
Income (loss) before income taxes										(2,032	)		648		1,954		934
Income tax expense (benefit)										(838	)		127		532		239
Net income (loss)									$	(1,194	)	$	521	$	1,422	$	695
Dividends paid on preferred stock										—			—		—		—
Accretion of discount on preferred stock										51			53		51		51
Accumulated preferred dividends										221			221		221		221
Net income (loss) available to common shareholders									$	(1,466	)	$	247	$	1,150	$	423
Earnings (loss) per common share, basic									$	(0.07	)	$	0.01	$	0.05	$	0.02
Earnings (loss) per common share, diluted									$	(0.07	)	$	0.01	$	0.05	$	0.02

XML

Lease Commitments - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Leases [Abstract]
Rent expenses	$ 621,000	$ 659,000	$ 695,000

XML

Securities - Summary of Fair Value and Gross Unrealized Loss for Securities Available for Sale (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	$ 149,040	$ 95,917
Unrealized Loss, Less than 12 Months	(6,373)	(937)
Fair Value, 12 Months or More	46,631
Unrealized Loss, 12 Months or More	(1,205)
Fair Value, Total	195,671	95,917
Unrealized Loss, Total	(7,578)	(937)
U.S. Treasury Issue and Other U.S. Gov't Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	35,873	70,561
Unrealized Loss, Less than 12 Months	(531)	(565)
Fair Value, 12 Months or More	37,638
Unrealized Loss, 12 Months or More	(436)
Fair Value, Total	73,511	70,561
Unrealized Loss, Total	(967)	(565)
U.S. Gov't Sponsored Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	486
Unrealized Loss, Less than 12 Months	(1)
Fair Value, 12 Months or More
Unrealized Loss, 12 Months or More
Fair Value, Total	486
Unrealized Loss, Total	(1)
State, County and Municipal [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	92,010	17,404
Unrealized Loss, Less than 12 Months	(5,343)	(271)
Fair Value, 12 Months or More	6,445
Unrealized Loss, 12 Months or More	(742)
Fair Value, Total	98,455	17,404
Unrealized Loss, Total	(6,085)	(271)
Corporate and Other Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	3,332	1,485
Unrealized Loss, Less than 12 Months	(42)	(8)
Fair Value, 12 Months or More	991
Unrealized Loss, 12 Months or More	(5)
Fair Value, Total	4,323	1,485
Unrealized Loss, Total	(47)	(8)
Mortgage Backed - U.S. Gov't Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	2,767	1,688
Unrealized Loss, Less than 12 Months	(198)	(10)
Fair Value, 12 Months or More
Unrealized Loss, 12 Months or More
Fair Value, Total	2,767	1,688
Unrealized Loss, Total	(198)	(10)
Mortgage Backed - U.S. Gov't Sponsored Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	14,572	4,779
Unrealized Loss, Less than 12 Months	(258)	(83)
Fair Value, 12 Months or More	1,557
Unrealized Loss, 12 Months or More	(22)
Fair Value, Total	16,129	4,779
Unrealized Loss, Total	$ (280)	$ (83)

XML

Related Party Transactions

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Related Party Transactions

Note 15. Related Party Transactions

In the ordinary course of business, the Bank has and expects to continue to have transactions, including borrowings, with its executive officers, directors, and their affiliates. All such loans are made on substantially the same terms as those prevailing at the time for comparable loans to unrelated persons.

The table below presents the activity for both direct and indirect loans at December 31, 2013 and 2012 (dollars in thousands).

	2013			2012
Balance, beginning of year	$	3,115		$	3,703
Principal additions		1,765			575
Repayments and reclassifications		(2,579	)		(1,163	)
Balance, end of year	$	2,301		$	3,115

Indirect loans at December 31, 2013 and 2012 were $1.8 million and $1.7 million, respectively.

XML

Branch Sale

12 Months Ended

Dec. 31, 2013

Discontinued Operations And Disposal Groups [Abstract]

Branch Sale

Note 29. Branch Sale

On November 8, 2013, the Company sold the four branches located in Georgia and related deposits to Community & Southern Bank, headquartered in Atlanta, Georgia (the “Branch Sale”). The Branch Sale resulted in the transfer of $193.2 million of deposits and $20,000 of consumer loans associated with such deposits to Community & Southern Bank in exchange for the payment of a deposit premium of $2.6 million. Certain fixed assets with a fair value of $5.2 million (cost, net of accumulated depreciation of $1.2 million) were also sold. In addition, $1.5 million of remaining unamortized intangible assets related to customers and deposits associated with the Branch Sale.

The following table summarizes deposits related to the Branch Sale (dollars in thousands):

Deposits
Noninterest bearing	$	15,869
Interest bearing		177,301
Total deposits	$	193,170

On October 25, 2013 the Company sold $24.3 million in loans held by the Georgia branches to Pinnacle Bank, headquartered in Elberton, Georgia (the “Loan Sale”), at a premium of 1.0%.

The following summarizes the loans related to the Loan Sale (dollars in thousands):

Mortgage loans on real estate:
Residential 1-4 family	$	2,240
Commercial		15,762
Construction and land development		2,895
Second mortgages		41
Multifamily		1,802
Agriculture		—
Total real estate loans		22,740
Commercial loans		1,147
Consumer installment loans		424
All other loans		—
Gross loans		24,311
Net deferred costs		34
Total loans	$	24,345

Based on the premiums outlined above, the Company recorded a net gain on the combined transactions of $255,000. This gain is net of the deposit premium of $2.6 million, a write off of $1.5 million of existing core deposit intangibles, a $827,000 loss on the sale of fixed assets, a $243,000 gain on the sale of loans and $258,000 in transaction related costs.

XML

Borrowings - Information for Borrowings Balances, Rates, and Maturities (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Short-term:
Total short-term borrowings	$ 6,000	$ 5,412
Long-term:
Federal Home Loan Bank advances	77,125	49,828
Maximum month-end outstanding balance	77,303	50,000
Average outstanding balance during the year	51,252	41,235
Average interest rate during the year	1.10%	2.40%
Average interest rate at end of year	0.66%	1.24%
Federal Funds Purchased [Member]
Short-term:
Federal Funds purchased		5,412
Securities sold under agreements to repurchase	6,000
Total short-term borrowings	6,000	5,412
Maximum month-end outstanding balance	9,722	16,446
Average outstanding balance during the year	$ 1,451	$ 1,348
Average interest rate during the year	0.55%	0.64%
Average interest rate at end of year	0.45%	0.43%

XML

Financial Instruments With Off-Balance Sheet Risk - Summary of the Contract Amounts of the Bank's Exposure to Off-Balance Sheet Risk (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Commitments with off-balance sheet risk:
Total commitments with off-balance sheet risk	$ 82,161	$ 73,543
Commitments to Extend Credit [Member]
Commitments with off-balance sheet risk:
Total commitments with off-balance sheet risk	72,183	64,056
Standby Letters of Credit [Member]
Commitments with off-balance sheet risk:
Total commitments with off-balance sheet risk	$ 9,978	$ 9,487

XML

Dividend Limitations on Affiliate Bank

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Dividend Limitations on Affiliate Bank

Note 17. Dividend Limitations on Affiliate Bank

Transfers of funds from the banking subsidiary to the parent corporation in the form of loans, advances and cash dividends are restricted by federal and state regulatory authorities. As of December 31, 2013 and 2012, the aggregate amount of unrestricted funds that could be transferred from the banking subsidiary to the parent corporation, without prior regulatory approval, totaled $3.5 million and $787,000, respectively. From January 1, 2012 until December 5, 2012, and for the year ended December 31, 2011, the Bank was not permitted to make dividend payments to the holding company without prior regulatory approval, as required by the formal written agreement that the Company had with its regulators.

XML

Loans Not Covered by FDIC Shared Loss Agreements (Non-Covered Loans) and Related Allowance for Loan Losses - Summary of Information Related to Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Impaired [Line Items]
With a related allowance, Recorded investment	$ 8,954	$ 14,952
With a related allowance, Unpaid Principal Balance	11,199	18,614
Related Allowance	1,604	2,656
With no related allowance recorded, Recorded investment	4,847	7,413
With no related allowance recorded, Unpaid Principal Balance	7,760	8,576
Total, Recorded investment	13,801	22,365
Total, Unpaid Principal Balance	18,959	27,190
Related Allowance	1,604	2,656
Mortgage Loans on Real Estate [Member]
Financing Receivable, Impaired [Line Items]
With a related allowance, Recorded investment	8,778	14,365
With a related allowance, Unpaid Principal Balance	10,354	17,953
Related Allowance	1,579	2,514
With no related allowance recorded, Recorded investment	4,841	7,404
With no related allowance recorded, Unpaid Principal Balance	7,754	8,384
Total, Recorded investment	13,619	21,769
Total, Unpaid Principal Balance	18,108	26,337
Related Allowance	1,579	2,514
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member]
Financing Receivable, Impaired [Line Items]
With a related allowance, Recorded investment	3,485	3,838
With a related allowance, Unpaid Principal Balance	3,739	4,021
Related Allowance	881	897
With no related allowance recorded, Recorded investment	1,189	2,702
With no related allowance recorded, Unpaid Principal Balance	1,228	3,094
Total, Recorded investment	4,674	6,540
Total, Unpaid Principal Balance	4,967	7,115
Related Allowance	881	897
Mortgage Loans on Real Estate [Member] | Commercial [Member]
Financing Receivable, Impaired [Line Items]
With a related allowance, Recorded investment	920	2,741
With a related allowance, Unpaid Principal Balance	1,091	2,827
Related Allowance	150	725
With no related allowance recorded, Recorded investment	1,714	3,076
With no related allowance recorded, Unpaid Principal Balance	1,969	3,281
Total, Recorded investment	2,634	5,817
Total, Unpaid Principal Balance	3,060	6,108
Related Allowance	150	725
Mortgage Loans on Real Estate [Member] | Construction and Land Development [Member]
Financing Receivable, Impaired [Line Items]
With a related allowance, Recorded investment	4,148	7,412
With a related allowance, Unpaid Principal Balance	5,298	10,355
Related Allowance	508	850
With no related allowance recorded, Recorded investment	1,734	1,578
With no related allowance recorded, Unpaid Principal Balance	4,335	1,961
Total, Recorded investment	5,882	8,990
Total, Unpaid Principal Balance	9,633	12,316
Related Allowance	508	850
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member]
Financing Receivable, Impaired [Line Items]
With a related allowance, Recorded investment	225	124
With a related allowance, Unpaid Principal Balance	226	170
Related Allowance	40	22
With no related allowance recorded, Recorded investment		48
With no related allowance recorded, Unpaid Principal Balance		48
Total, Recorded investment	225	172
Total, Unpaid Principal Balance	226	218
Related Allowance	40	22
Mortgage Loans on Real Estate [Member] | Multifamily [Member]
Financing Receivable, Impaired [Line Items]
With a related allowance, Recorded investment
With a related allowance, Unpaid Principal Balance
Related Allowance
With no related allowance recorded, Recorded investment
With no related allowance recorded, Unpaid Principal Balance
Total, Recorded investment
Total, Unpaid Principal Balance
Related Allowance
Mortgage Loans on Real Estate [Member] | Agriculture [Member]
Financing Receivable, Impaired [Line Items]
With a related allowance, Recorded investment		250
With a related allowance, Unpaid Principal Balance		580
Related Allowance		20
With no related allowance recorded, Recorded investment	204
With no related allowance recorded, Unpaid Principal Balance	222
Total, Recorded investment	204	250
Total, Unpaid Principal Balance	222	580
Related Allowance		20
Commercial Loans [Member]
Financing Receivable, Impaired [Line Items]
With a related allowance, Recorded investment	127	509
With a related allowance, Unpaid Principal Balance	794	582
Related Allowance	16	121
With no related allowance recorded, Recorded investment
With no related allowance recorded, Unpaid Principal Balance		183
Total, Recorded investment	127	509
Total, Unpaid Principal Balance	794	765
Related Allowance	16	121
Consumer Installment Loans [Member]
Financing Receivable, Impaired [Line Items]
With a related allowance, Recorded investment	49	78
With a related allowance, Unpaid Principal Balance	51	79
Related Allowance	9	21
With no related allowance recorded, Recorded investment	6	9
With no related allowance recorded, Unpaid Principal Balance	6	9
Total, Recorded investment	55	87
Total, Unpaid Principal Balance	57	88
Related Allowance	9	21
All Other Loans [Member]
Financing Receivable, Impaired [Line Items]
With a related allowance, Recorded investment
With a related allowance, Unpaid Principal Balance
Related Allowance
With no related allowance recorded, Recorded investment
With no related allowance recorded, Unpaid Principal Balance
Total, Recorded investment
Total, Unpaid Principal Balance
Related Allowance

XML

Employee Benefit Plans - Pension Plan's Weighted-Average Asset Allocations by Asset Category (Detail)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Pension plan's weighted-average asset allocations by asset category
Total	100.00%	100.00%
Mutual Funds - Fixed Income [Member]
Pension plan's weighted-average asset allocations by asset category
Total	40.00%	39.00%
Mutual Funds - Equity [Member]
Pension plan's weighted-average asset allocations by asset category
Total	60.00%	61.00%
Cash and Equivalents [Member]
Pension plan's weighted-average asset allocations by asset category
Total	0.00%	0.00%

XML

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Operating activities:
Net income	$ 5,906	$ 5,582	$ 1,444
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and intangibles amortization	3,842	3,963	4,055
Issuance of common stock and stock options	258	156	245
Provision for loan losses		1,200	1,498
Deferred tax expense	2,497	2,126	967
Amortization of purchased loans premium	1,265	1,242	578
Amortization of security premiums and accretion of discounts, net	3,488	3,196	2,060
Net gain on sale of securities	(518)	(1,492)	(2,868)
Net loss on sale and valuation of other real estate owned	1,714	1,833	2,869
Net loss on sale of loans	359
Changes in assets and liabilities:
Net (increase) decrease in loans held for sale	1,595	(686)	(580)
Decrease in other assets	9,437	9,037	23,605
(Decrease) increase in accrued expenses and other liabilities	388	(2,469)	(490)
Net cash provided by operating activities	30,231	23,688	33,383
Investing activities:
Proceeds from available for sale securities	156,123	174,541	291,779
Proceeds from held to maturity securities	13,471	21,669	18,809
Proceeds from equity securities	1,629	611	363
Purchase of available for sale securities	(127,451)	(251,111)	(301,484)
Purchase of equity securities	(2,582)	(1,144)	(65)
Proceeds from sale of other real estate	7,491	9,630	8,759
Improvements of other real estate, net of insurance proceeds	(621)	(1,130)	(211)
Net increase in loans	(46,847)	(33,408)	(27,226)
Principal recoveries of loans previously charged off	1,015	2,439	588
Purchase of building premises and equipment, net	(1,887)	(256)	(591)
Purchase of bank owned life insurance investment	(5,000)		(7,500)
Proceeds from sale of loans	28,611
Proceeds from sale of premises and equipment	5,177
Net cash provided by (used in) investing activities	29,129	(78,159)	(16,779)
Financing activities:
Net increase (decrease) in noninterest bearing and interest bearing demand deposits	111,193	40,827	(28,234)
Net increase in federal funds purchased and securities sold under agreements to repurchase	588	5,412
Net increase in Federal Home Loan Bank borrowings	27,297	12,828
Payment from sale of deposits	(190,855)
Redemption of preferred stock	(7,000)
Cash dividends paid	(885)	(2,210)
Net cash (used in) provided by financing activities	(59,662)	56,857	(28,234)
Net (decrease) increase in cash and cash equivalents	(302)	2,386	(11,630)
Cash and cash equivalents:
Beginning of period	24,137	21,751	33,381
End of the period	23,835	24,137	21,751
Supplemental disclosures of cash flow information:
Interest paid	7,252	10,253	12,434
Income taxes paid		120	87
Transfers of loans to other real estate owned property	3,351	8,480	12,316
Transfer of loans held for investment to loans held for sale	30,228
Transfer of building premises and equipment to held for sale	5,174
Transfer of deposits to held for sale	$ 193,170

XML

Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Statement Of Financial Position [Abstract]
Securities held to maturity	$ 30,305	$ 45,228
Allowance for loan losses, non-covered loans	10,444	12,920
Allowance for loan losses, covered loans	$ 484	$ 484
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares issued	10,680	17,680
Preferred stock, shares outstanding	10,680	17,680
Common stock, shares authorized	200,000,000	200,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	21,709,096	21,670,212
Common stock, shares outstanding	21,709,096	21,670,212

XML

Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Note 10. Income Taxes

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31 are as follows (dollars in thousands):

	2013		2012
Deferred tax assets:
Allowance for loan losses	$	3,715	$	4,557
Deferred compensation		633		514
Nonaccrual loan interest		931		847
Unrealized loss on available for sale securities		2,037		—
FAS 158 adjustment pension		81		554
Stock based compensation		205		165
Net operating loss carryforward		—		2,667
Alternative minimum tax credit		—		391
Depreciation		118		137
OREO		618		1,007
Other		146		395
	$	8,484	$	11,234
Deferred tax liabilities:
Accrued pension		355		359
Purchase accounting adjustment		2,257		4,089
Unrealized gain on available for sale securities		—		2,011
Other		56		37
	$	2,668	$	6,496
Net deferred tax asset	$	5,816	$	4,738

The Company has analyzed the tax positions taken or expected to be taken in its tax returns and concluded that it has no liability related to uncertain tax positions in accordance with FASB ASC 740, Income Taxes.

The Company has evaluated the need for a deferred tax valuation allowance for the year ended December 31, 2013 in accordance with FASB ASC 740. Based on a three year income projection of taxable income and tax strategies that would result in potential securities gains and the effects of off-setting deferred tax liabilities, the Company believes that it is more likely than not that the deferred tax assets are realizable. Therefore, no allowance is required. Years 2010 through 2013 are subject to audit by taxing authorities. The Company had a net operating loss carryforward of $7.8 million as of December 31, 2012. The Company has utilized all of the available net operating loss carryforward as of December 31, 2013.

Allocation of the income tax expense between current and deferred portions is as follows (dollars in thousands):

	2013		2012		2011
Current tax provision	$	—	$	22	$	(907	)
Deferred tax expense (benefit)		2,497		2,126		967
Income tax expense (benefit)	$	2,497	$	2,148	$	60

The following is a reconciliation of the expected income tax expense with the reported expense for each year:

	2013			2012			2011
Statutory federal income tax rate		34.0	%		34.0	%		34.0	%
(Reduction) Increase in taxes resulting from:
Municipal interest		(2.6	)		(2.0	)		(21.8	)
Bank owned life insurance income		(3.0	)		(2.7	)		(6.2	)
Other, net		1.3			(1.5	)		(2.0	)
Effective tax rate		29.7	%		27.8	%		4.0	%

XML

Employee Benefit Plans - Schedule of Defined Benefit Plans Amount Recognized in Financial Statement (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Compensation And Retirement Disclosure [Abstract]
Other assets	$ 823
Other liabilities		536
Amounts Recognized in Accumulated Other Comprehensive Income
Net loss	168	1,630
Prior service cost	68
Net obligation at transition
Deferred tax	(81)	(555)
Total amount recognized	$ 155	$ 1,075

XML

Income Taxes - Tax Effects of Temporary Differences on the Deferred Tax Assets and Deferred Tax Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Deferred tax assets:
Allowance for loan losses	$ 3,715	$ 4,557
Deferred compensation	633	514
Nonaccrual loan interest	931	847
Unrealized loss on available for sale securities	2,037
FAS 158 adjustment pension	81	554
Stock based compensation	205	165
Net operating loss carryforward		2,667
Alternative minimum tax credit		391
Depreciation	118	137
OREO	618	1,007
Other	146	395
Deferred tax assets, Total	8,484	11,234
Deferred tax liabilities:
Accrued pension	355	359
Purchase accounting adjustment	2,257	4,089
Unrealized gain on available for sale securities		2,011
Other	56	37
Deferred tax liabilities, Total	2,668	6,496
Net deferred tax asset	$ 5,816	$ 4,738

XML

Accumulated Other Comprehensive Income - Summary of Accumulated Other Comprehensive (Loss) Income (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 2,828	$ 2,219	$ (145)
Other comprehensive (loss) income before reclassifications	(6,121)	1,574	3,722
Amounts reclassified from AOCI	(816)	(965)	(1,358)
Net current period other comprehensive loss	(6,937)	609	2,364
Ending balance	(4,109)	2,828	2,219
Unrealized Gain/Loss on Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	3,903	3,257	(145)
Other comprehensive (loss) income before reclassifications	(7,515)	1,631	5,295
Amounts reclassified from AOCI	(342)	(985)	(1,893)
Net current period other comprehensive loss	(7,857)	646	3,402
Ending balance	(3,954)	3,903	3,257
Defined Benefit Pension Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(1,075)	(1,038)
Other comprehensive (loss) income before reclassifications	1,394	(57)	(1,573)
Amounts reclassified from AOCI	(474)	20	535
Net current period other comprehensive loss	920	(37)	(1,038)
Ending balance	$ (155)	$ (1,075)	$ (1,038)

XML

Concentration of Credit Risk - Additional Information (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Risks And Uncertainties [Abstract]
Real estate secured loan credit risk concentration percentage	83.75%	86.96%
Secured accounts by the FDIC	$ 250,000
Uninsured accounts by the FDIC	$ 7,100,000	$ 8,900,000

XML

Other Noninterest Expense - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2013
Other Non Interest Expenses [Abstract]
Aggregate of total net interest income and total noninterest income	1.00%

XML

Related Party Transactions - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Indirect loans	$ 2,301	$ 3,115	$ 3,703
Indirect Loans [Member]
Indirect loans	$ 1,800	$ 1,700

XML

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2013	Feb. 28, 2014	Jun. 30, 2013
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Entity Registrant Name	Community Bankers Trust Corp
Entity Central Index Key	0001323648
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		21,712,846
Entity Public Float			$ 75,898,238

XML

Fair Values of Assets and Liabilities - Assets and Liabilities Recorded at Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	$ 265,777	$ 309,078
U.S. Treasury Issue and Other U.S. Gov't Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	98,987	153,277
U.S. Gov't Sponsored Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	486	503
State, County and Municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	134,096	117,596
Corporate and Other Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	6,349	7,618
Mortgage Backed - U.S. Gov't Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	3,439	15,560
Mortgage Backed - U.S. Gov't Sponsored Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	22,420	14,524
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	265,777	309,078
Loans held for sale	100	1,266
Total assets at fair value	265,877	310,344
Total liabilities at fair value
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	99,948	161,028
Total assets at fair value	99,948	161,028
Total liabilities at fair value
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	165,829	148,050
Loans held for sale	100	1,266
Total assets at fair value	165,929	149,316
Total liabilities at fair value
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale
Loans held for sale
Total assets at fair value
Total liabilities at fair value
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Issue and Other U.S. Gov't Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	98,987	153,277
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Issue and Other U.S. Gov't Agencies [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	94,935	153,277
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Issue and Other U.S. Gov't Agencies [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	4,052
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Issue and Other U.S. Gov't Agencies [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale
Fair Value, Measurements, Recurring [Member] | U.S. Gov't Sponsored Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	486	503
Fair Value, Measurements, Recurring [Member] | U.S. Gov't Sponsored Agencies [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	486	503
Fair Value, Measurements, Recurring [Member] | U.S. Gov't Sponsored Agencies [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale
Fair Value, Measurements, Recurring [Member] | State, County and Municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	134,096	117,596
Fair Value, Measurements, Recurring [Member] | State, County and Municipal [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	2,482	6,742
Fair Value, Measurements, Recurring [Member] | State, County and Municipal [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	131,614	110,854
Fair Value, Measurements, Recurring [Member] | State, County and Municipal [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale
Fair Value, Measurements, Recurring [Member] | Corporate and Other Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	6,349	7,618
Fair Value, Measurements, Recurring [Member] | Corporate and Other Bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale		1,009
Fair Value, Measurements, Recurring [Member] | Corporate and Other Bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	6,349	6,609
Fair Value, Measurements, Recurring [Member] | Corporate and Other Bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale
Fair Value, Measurements, Recurring [Member] | Mortgage Backed - U.S. Gov't Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	3,439	15,560
Fair Value, Measurements, Recurring [Member] | Mortgage Backed - U.S. Gov't Agencies [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	3,439	15,560
Fair Value, Measurements, Recurring [Member] | Mortgage Backed - U.S. Gov't Agencies [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale
Fair Value, Measurements, Recurring [Member] | Mortgage Backed - U.S. Gov't Sponsored Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	22,420	14,524
Fair Value, Measurements, Recurring [Member] | Mortgage Backed - U.S. Gov't Sponsored Agencies [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	2,531
Fair Value, Measurements, Recurring [Member] | Mortgage Backed - U.S. Gov't Sponsored Agencies [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale	19,889	14,524
Fair Value, Measurements, Recurring [Member] | Mortgage Backed - U.S. Gov't Sponsored Agencies [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investment securities available for sale

XML

Borrowings

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Borrowings

Note 11. Borrowings

The Company uses borrowings in conjunction with deposits to fund lending and investing activities. Borrowings include funding of a short-term and long-term nature. Short-term funding includes overnight borrowings from correspondent banks and securities sold under agreements to repurchase. Long-term borrowings are obtained through the FHLB of Atlanta. As of December 31, 2013, the Company had 1-4 family mortgages in the amount of $139.3 million pledged as collateral to the FHLB for a total borrowing capacity of $88.1 million. The following information is provided for borrowings balances, rates, and maturities (dollars in thousands):

	As of December 31
	2013			2012
Short-term:
Federal Funds purchased	$	—		$	5,412
Securities sold under agreements to repurchase		6,000			—
Total short-term borrowings	$	6,000		$	5,412
Maximum month-end outstanding balance	$	9,722		$	16,446
Average outstanding balance during the year	$	1,451		$	1,348
Average interest rate during the year		0.55	%		0.64	%
Average interest rate at end of year		0.45	%		0.43	%
Long-term:
Federal Home Loan Bank advances	$	77,125		$	49,828
Maximum month-end outstanding balance	$	77,303		$	50,000
Average outstanding balance during the year	$	51,252		$	41,235
Average interest rate during the year		1.10	%		2.40	%
Average interest rate at end of year		0.66	%		1.24	%

Maturities of fixed rate long-term debt at December 31, 2013 are as follows (dollars in thousands):

2014	$	30,000
2015		20,000
2016		10,000
2017		5,000
2018		—
Thereafter		12,125
Total	$	77,125

The Company had unsecured lines of credit with correspondent banks available for overnight borrowing totaling $26 million at December 31, 2013.

XML

Loans Not Covered by FDIC Shared Loss Agreement (Covered Loans) and Related Allowance for Loan Losses - Allowance for Loan Losses on Covered Loans by Loan Category (Detail) (USD $) In Thousands, unless otherwise specified			12 Months Ended								12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2012 Covered Loans [Member]	Dec. 31, 2011 Covered Loans [Member]	Dec. 31, 2012 Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2011 Covered Loans [Member] Mortgage Loans on Real Estate [Member]	Dec. 31, 2012 Covered Loans [Member] Mortgage Loans on Real Estate [Member] Residential 1-4 Family [Member]	Dec. 31, 2011 Covered Loans [Member] Mortgage Loans on Real Estate [Member] Residential 1-4 Family [Member]	Dec. 31, 2012 Covered Loans [Member] Mortgage Loans on Real Estate [Member] Commercial [Member]	Dec. 31, 2010 Covered Loans [Member] Mortgage Loans on Real Estate [Member] Commercial [Member]	Dec. 31, 2012 Covered Loans [Member] Mortgage Loans on Real Estate [Member] Construction and Land Development [Member]	Dec. 31, 2012 Covered Loans [Member] Mortgage Loans on Real Estate [Member] Multifamily [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Beginning Balance	$ 484	$ 484	$ 776	$ 829	$ 776	$ 829	$ 473	$ 526	$ 303	$ 303
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision Allocation			(250)		(250)		(218)		(71)		4	35
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Charges Offs			(349)	(53)	(349)	(53)	(12)	(53)			(22)	(315)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Recoveries			307		307		9				18	280
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Ending Balance	$ 484	$ 484	$ 484	$ 776	$ 484	$ 776	$ 252	$ 473	$ 232	$ 303

XML

Deposits - Scheduled Maturities of Time Deposits (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Interest Bearing Deposit Liabilities [Abstract]
2014	$ 316,584
2015	135,836
2016	64,255
2017	17,864
2018	15,388
2019	842
Total	$ 550,769

XML

Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Interest and dividend income
Interest and fees on non-covered loans	$ 29,696	$ 30,658	$ 29,272
Interest and fees on FDIC covered loans	11,936	14,105	17,576
Interest on federal funds sold	3	5	6
Interest on deposits in other banks	58	54	65
Interest and dividends on securities
Taxable	7,693	8,408	8,091
Nontaxable	659	489	1,025
Total interest and dividend income	50,045	53,719	56,035
Interest expense
Interest on deposits	6,370	8,508	10,815
Interest on federal funds purchased	4	9	1
Interest on other borrowed funds	704	1,175	1,412
Total interest expense	7,078	9,692	12,228
Net interest income	42,967	44,027	43,807
Provision for loan losses		1,200	1,498
Net interest income after provision for loan losses	42,967	42,827	42,309
Noninterest income
Service charges on deposit accounts	2,739	2,736	2,503
Gain on securities transactions, net	518	1,492	2,868
Loss on sale of other loans, net	(359)
Income on bank owned life insurance	747	620	291
Other	1,079	1,358	2,571
Total noninterest income	4,724	6,206	8,233
Noninterest expense
Salaries and employee benefits	15,981	16,511	16,603
Occupancy expenses	2,717	2,715	2,894
Equipment expenses	1,038	1,087	1,237
Legal fees	95	51	444
Professional fees	290	391	583
FDIC assessment	843	1,485	2,788
Data processing fees	2,078	1,824	1,864
FDIC indemnification asset amortization	6,449	6,936	10,364
Amortization of intangibles	2,202	2,261	2,261
Other real estate expense	2,034	2,493	3,788
Other operating expenses	5,561	5,549	6,212
Total noninterest expense	39,288	41,303	49,038
Income before income taxes	8,403	7,730	1,504
Income tax expense	2,497	2,148	60
Net income	5,906	5,582	1,444
Dividends paid on preferred stock	885	884
Accretion of discount on preferred stock	234	220	206
Accumulated preferred dividends			884
Net income available to common stockholders	$ 4,787	$ 4,478	$ 354
Net income per share - basic	$ 0.22	$ 0.21	$ 0.02
Net income per share - diluted	$ 0.22	$ 0.21	$ 0.02
Weighted average number of shares outstanding
basic	21,700	21,647	21,565
diluted	21,922	21,717	21,565

XML

FDIC Agreements and FDIC Indemnification Asset

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

FDIC Agreements and FDIC Indemnification Asset

Note 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 assets are to be made quarterly through March 2019, and the reimbursements for losses on other covered assets are to be made quarterly through March 2014. 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 OREO, 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, 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.

As discussed above, the shared-loss agreement for assets other than single family one-to-four mortgages expires March 2014. The portion of the FDIC indemnification asset related to those assets was $213,000 at December 31, 2013, of which $79,000 represented estimated losses to be reimbursed by the FDIC.

The following table presents the balances of the FDIC indemnification asset at December 31, 2013, 2012 and 2011 (dollars in thousands):

				Estimated			Amortizable			FDIC
	Anticipated			Loss			Premium			Indemnification
	Expected			Sharing			(Discount)			Asset
	Losses			Value			at PV			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		622			497						497
Decreases:
Net amortization of premium								(6,936	)		(6,936	)
Reclassifications to FDIC receivable:
Net loan charge-offs and recoveries		(1,321	)		(1,057	)					(1,057	)
OREO sales		(1,140	)		(912	)					(912	)
Reimbursements requested from FDIC		(495	)		(396	)					(396	)
Reforecasted change in anticipated expected losses		(3,174	)		(2,539	)		2,539			—
December 31, 2012		23,205			18,564			15,273			33,837
Increases:
Writedown of OREO property to FMV		344			275						275
Decreases:
Net amortization of premium								(6,449	)		(6,449	)
Reclassifications to FDIC receivable:
Net loan charge-offs and recoveries		(1,268	)		(1,014	)					(1,014	)
OREO sales		(1,180	)		(944	)					(944	)
Reimbursements requested from FDIC		(370	)		(296	)					(296	)
Reforecasted change in anticipated expected losses		(7,217	)		(5,774	)		5,774			—
December 31, 2013	$	13,514		$	10,811		$	14,598		$	25,409

XML

Loans Covered by FDIC Shared-Loss Agreements (Covered Loans) and Related Allowance for Loan Losses

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Loans Covered by FDIC Shared-Loss Agreements (Covered Loans) and Related Allowance for Loan Losses

Note 4. Loans Covered by FDIC Shared-loss Agreements (Covered Loans) and Related Allowance for Loan Losses

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 FASB 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 FASB 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 that time.

As of December 31, 2013 and 2012, the outstanding contractual balance of the covered loans was $117.0 million and $137.2 million, respectively. The carrying amount, by loan type, as of these dates is as follows (dollars in thousands):

	December 31, 2013					December 31, 2012
	Amount		% of Covered Loans			Amount		% of Covered Loans
Mortgage loans on real estate:
Residential 1-4 family	$	64,610		88.18	%	$	74,046		87.47	%
Commercial		1,389		1.90			1,986		2.35
Construction and land development		2,940		4.01			3,264		3.86
Second mortgages		3,898		5.32			4,864		5.75
Multifamily		266		0.36			304		0.36
Agriculture		172		0.23			172		0.20
Total real estate loans		73,275		100.00	%		84,636		99.99	%
Commercial loans		—		—			—		—
Consumer installment loans		—		—			1		0.01
All other loans		—		—			—		—
Total covered loans	$	73,275		100.00	%	$	84,637		100.00	%

There was no activity in the allowance for loan losses on covered loans for the year ended December 31, 2013. Activity in the allowance for loan losses on covered loans for the years ended December 31, 2012 and 2011, was comprised of the following (dollars in thousands):

	December 31, 2011		Provision Allocation			Charge offs			Recoveries		December 31, 2012
Mortgage loans on real estate:
Residential 1-4 family	$	473	$	(218	)	$	(12	)	$	9	$	252
Commercial		303		(71	)		—			—		232
Construction and land development		—		4			(22	)		18		—
Multifamily		—		35			(315	)		280		—
Total real estate loans		776		(250	)		(349	)		307		484
Total covered loans	$	776	$	(250	)	$	(349	)	$	307	$	484

	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
Total real estate loans		829		—		(53	)		—		776
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 December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013				December 31, 2012
	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	$	252	$	64,610	$	252	$	74,046
Commercial		232		1,389		232		1,986
Construction and land development		—		2,940		—		3,264
Second mortgages		—		3,898		—		4,864
Multifamily		—		266		—		304
Agriculture		—		172		—		172
Total real estate loans		484		73,275		484		84,636
Commercial loans		—		—		—		—
Consumer installment loans		—		—		—		1
All other loans		—		—		—		—
Total covered loans	$	484	$	73,275	$	484	$	84,637

The change in the accretable yield balance since January 1, 2011 is as follows:

Balance at January 1, 2011	$	75,718
Accretion		(17,525	)
Reclassification from (to) nonaccretable yield		(1,883	)
Balance at December 31, 2011		56,310
Accretion		(14,105	)
Reclassification from (to) nonaccretable yield		11,939
Balance at December 31, 2012		54,144
Accretion		(11,936	)
Reclassification from (to) nonaccretable yield		9,307
Balance at December 31, 2013	$	51,515

The covered loans were not classified as nonperforming assets at December 31, 2013 and 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.

XML

Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2013

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

Note 16. Commitments and Contingent Liabilities

In the normal course of business, there are outstanding various commitments and contingent liabilities, such as guarantees and commitments to extend credit, which are not reflected in the accompanying consolidated financial statements. The Bank does not anticipate losses as a result of these transactions. See Note 19 with respect to financial instruments with off-balance-sheet risk.

In February 2010, the Company’s Board of Directors approved two transaction-based bonus awards to the officer who was the Company’s then chief strategic officer. The approval of the bonus awards was made pursuant to a provision in the officer’s employment agreement that provides for a cash bonus payment for financial advisory and other services that the officer renders in connection with the negotiation and consummation of a merger or other business combination involving the Company or any of its affiliates or the acquisition by the Company or any of its affiliates of a substantial portion of the assets or deposits of another financial institution. The bonus awards related to the officer’s financial advisory and other services with respect to the Bank’s acquisition of certain assets and assumption of all deposit liabilities of four former branch offices of The Community Bank of Loganville on November 21, 2008 and the Bank’s acquisition of certain assets and assumption of all deposit liabilities of seven former branch offices of SFSB on January 30, 2009. The amounts of the bonus awards are (i) $1,169,445, calculated as 0.50% of the total amount of non-brokered deposits that the Bank assumed in the November 2008 transaction and (ii) $1,816,430, calculated as 0.50% of the total amount of loans and other assets that the Bank acquired in the January 2009 transaction. The Company believes that these bonus awards are permitted under the rules and regulations of the TARP Capital Purchase Program. In accordance with generally accepted accounting principles, the Company has reflected these bonus awards in the financial statements for the year ended December 31, 2009. The Company made payment of the entire amount of these bonus awards to the individual in six equal installments during a period from February 12, 2010 to June 30, 2010.

During the first two quarters of 2010, the Company discussed with the Federal Reserve Bank of Richmond and the Virginia Bureau of Financial Institutions certain issues with respect to the payment of these bonus awards. These issues include the compliance of the terms and structure of the bonus awards with Federal Reserve System Regulation W and the rules and regulations of the TARP Capital Purchase Program. The Company has worked diligently to resolve these issues, but, as of March 14, 2014, these issues remain open with its regulators. The Company cannot make any assurances as to the amount of these bonus awards, if any, that will ultimately be permissible following the resolution of these issues. In addition, the Company cannot make any assurances as to any penalties that the regulatory agencies may assess if the Company is determined to have violated any of the rules and regulations described above. Such penalties may include, with respect to any Federal Reserve violations, formal or informal action directing the Company to make immediate corrections, civil penalties if it is determined that the violation was caused with intent, undertaken with reckless disregard for the Company’s financial safety and soundness, or results in gain to the Company. In addition, such penalties may include, with respect to any TARP violations, civil and criminal penalties and restitution of payments paid by the Company to the officer. The Company is unable to make an estimate of the possible loss or range of loss that it may incur as a result of these issues.

XML

Employee Benefit Plans

12 Months Ended

Dec. 31, 2013

Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

Note 12. Employee Benefit Plans

The Company adopted the Bank of Essex noncontributory, defined benefit pension plan for all full-time pre-merger Bank of Essex 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 the Defined Benefit Plan participants effective December 31, 2010.

The following table provides a reconciliation of the changes in the plan’s benefit obligations and fair value of assets for the year ended December 31, 2013 and 2012 (dollars in thousands):

	2013			2012
Change in Benefit Obligation
Benefit obligation, beginning of year	$	5,791		$	5,622
Service cost		—			—
Interest cost		224			250
Actuarial gain/(loss)		(749	)		425
Benefits paid		(649	)		(488	)
Change in obligation due to plan amendment		68			—
Settlement (gain)/loss		(23	)		(18	)
Benefit obligation, ending	$	4,662		$	5,791
Change in Plan Assets
Fair value of plan assets, beginning of year	$	5,255		$	3,157
Actual return on plan assets		879			586
Employer contributions		—			2,000
Benefits paid		(649	)		(488	)
Fair value of plan assets, ending	$	5,485		$	5,255
Funded Status	$	823		$	(536	)
Amounts Recognized in the Balance Sheet
Other assets	$	823		$	—
Other liabilities		—			536
Amounts Recognized in Accumulated Other Comprehensive Income
Net loss	$	168		$	1,630
Prior service cost		68			—
Net obligation at transition		—			—
Deferred tax		(81	)		(555	)
Total amount recognized	$	155		$	1,075

The accumulated benefit obligation for the defined benefit pension plan at December 31, 2013 and 2012 was $4.7 million and $5.8 million, respectively.

The following table provides the components of net periodic benefit cost for the plan for the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):

	2013			2012			2011
Components of Net Periodic Benefit Cost
Interest cost	$	224		$	250		$	260
Expected return on plan assets		(405	)		(408	)		(301	)
Recognized net loss due to settlement		147			105			3
Recognized net actuarial loss		69			66			—
Net periodic (benefit) cost	$	35		$	13		$	(38	)
Total recognized in net periodic benefit cost and accumulated other comprehensive (loss) income	$	(1,359	)	$	71		$	1,534

The weighted-average assumptions used in the measurement of the Company’s benefit obligation and net periodic benefit cost are shown in the following table:

	2013			2012			2011
Discount rate used for net periodic pension cost		4.00	%		4.50	%		5.50	%
Discount rate used for disclosure		5.00	%		4.00	%		4.50	%
Expected return on plan assets		8.00	%		8.00	%		8.00	%

Other changes in plan assets and benefit obligations recognized in other comprehensive income during 2013 are as follows (dollars in thousands):

Net (gain)/loss	$	(1,462	)
Prior service cost		68
Total amount recognized	$	(1,394	)

The estimated amounts that will amortize from accumulated other comprehensive income into net periodic benefit cost in 2014 are as follows (dollars in thousands):

Prior service cost	$	5
Net loss due to settlement		11
Total amount recognized	$	16

Long-Term Rate of Return

The plan sponsor selects the expected long-term rate of return on assets assumption in consultation with its investment advisors and actuary. This rate is intended to reflect the average rate of earnings expected to be earned on the funds invested or to be invested to provide plan benefits. Historical performance is reviewed, especially with respect to real rates of return (net of inflation), for the major asset classes held or anticipated to be held by the trust, and for the trust itself. Undue weight is not given to recent experience that may not continue over the measurement period, with higher significance placed on current forecasts of future long-term economic conditions.

Because assets are held in a qualified trust, anticipated returns are not reduced for taxes. Further, solely for this purpose, the plan is assumed to continue in force and not terminate during the period during which assets are invested. However, consideration is given to the potential impact of current and future investment policy, cash flow into and out of the trust, and expenses (both investment and non-investment) typically paid from plan assets (to the extent such expenses are not explicitly estimated within periodic cost).

Asset Allocation

The pension plan’s weighted-average asset allocations as of December 31, 2013 and 2012 by asset category were as follows:

	2013			2012
Asset Category
Mutual funds – fixed income		40.00	%		39.00	%
Mutual funds – equity		60.00			61.00
Cash and equivalents		0.00			0.00
Total		100.00	%		100.00	%

The fair value of plan assets is measured based on the fair value hierarchy as discussed in Note 21, “Fair Values of Assets and Liabilities”, to the Consolidated Financial Statements. The valuations are based on third party data received as of the balance sheet date. All plan assets are considered Level 1 assets, as quoted prices exist in active markets for identical assets.

The following table presents the fair value of plan assets as of December 31, 2013 and 2012 (dollars in thousands):

	Assets measured at Fair Value (Level 1)
	December 31, 2013		December 31, 2012
Cash	$	6	$	5
Mutual funds:
Fixed income funds		2,178		2,033
International funds		828		418
Large cap funds		844		1,014
Mid cap funds		570		593
Small cap funds		201		258
Stock fund		857		932
	$	5,484	$	5,253

The trust fund is sufficiently diversified to maintain a reasonable level of risk without imprudently sacrificing return, with a targeted asset allocation of 40% fixed income and 60% equities. The investment manager selects investment fund managers with demonstrated experience and expertise, and funds with demonstrated historical performance, for the implementation of the plan’s investment strategy. The investment manager will consider both actively and passively managed investment strategies and will allocate funds across the asset classes to develop an efficient investment structure.

It is the responsibility of the trustee to administer the investments of the trust within reasonable costs, being careful to avoid sacrificing quality. These costs include, but are not limited to, management and custodial fees, consulting fees, transaction costs and other administrative costs chargeable to the trust.

Estimated future contributions and benefit payments, which reflect expected future service, as appropriate, are as follows (dollars in thousands):

Expected Employer Contributions
2014	$	—
Expected Benefit Payments
2014	$	421
2015		744
2016		227
2017		86
2018		394
2019-2023		1,159

401(k) Plan

The Company combined the acquired BOE 401(k) and TFC 401(k) plans into the Essex Bank 401(k) plan effective October 1, 2010. The employee may contribute up to 100% of compensation, subject to statutory limitations. The Company matches 100% of employee contributions on the first 3% of compensation, then the Company matches 50% of employee contributions on the next 2% of compensation.

The amounts charged to expense under these plans for the years ended December 31, 2013, 2012 and 2011 were $472,000, $473,000, and $332,000, respectively.

Deferred Compensation Agreements

The Company has deferred compensation agreements with certain key employees and the Board of Directors. The retirement benefits to be provided are fixed based upon the amount of compensation earned and deferred. Deferred compensation expense amounted to $124,000, $99,000, and $107,000 for the years ended December 31, 2013, 2012 and 2011, respectively. The expense associated with these agreements is offset by increased cash surrender value of life insurance policies on the individuals.

XML

FDIC Agreements and FDIC Indemnification Asset - Summary Balances of FDIC Indemnification Asset (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Fdic Agreements And Fdic Indemnification Asset [Line Items]
Beginning Balance	$ 33,837	$ 42,641	$ 58,369
Increases:
Writedown of OREO property to FMV	275	497	1,522
Decreases:
Net amortization of premium	(6,449)	(6,936)	(10,364)
Reclassifications to FDIC receivable:
Net loan charge-offs and recoveries	(1,014)	(1,057)	(2,655)
OREO sales	(944)	(912)	(2,211)
Reimbursements requested from FDIC	(296)	(396)	(2,020)
Ending Balance	25,409	33,837	42,641
Anticipated Expected Losses [Member]
Fdic Agreements And Fdic Indemnification Asset [Line Items]
Beginning Balance	23,205	28,713	46,250
Increases:
Writedown of OREO property to FMV	344	622	1,902
Reclassifications to FDIC receivable:
Net loan charge-offs and recoveries	(1,268)	(1,321)	(3,319)
OREO sales	(1,180)	(1,140)	(2,764)
Reimbursements requested from FDIC	(370)	(495)	(2,525)
Reforecasted change in anticipated expected losses	(7,217)	(3,174)	(10,831)
Ending Balance	13,514	23,205	28,713
Estimated Loss Sharing Value [Member]
Fdic Agreements And Fdic Indemnification Asset [Line Items]
Beginning Balance	18,564	22,971	37,000
Increases:
Writedown of OREO property to FMV	275	497	1,522
Reclassifications to FDIC receivable:
Net loan charge-offs and recoveries	(1,014)	(1,057)	(2,655)
OREO sales	(944)	(912)	(2,211)
Reimbursements requested from FDIC	(296)	(396)	(2,020)
Reforecasted change in anticipated expected losses	(5,774)	(2,539)	(8,665)
Ending Balance	10,811	18,564	22,971
Amortizable Premium (Discount) at Present Value [Member]
Fdic Agreements And Fdic Indemnification Asset [Line Items]
Beginning Balance	15,273	19,670	21,369
Decreases:
Net amortization of premium	(6,449)	(6,936)	(10,364)
Reclassifications to FDIC receivable:
Reforecasted change in anticipated expected losses	5,774	2,539	8,665
Ending Balance	$ 14,598	$ 15,273	$ 19,670

XML

Deposits

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Deposits

Note 8. Deposits

The following table presents interest-bearing deposits by type at December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013		December 31, 2012
NOW	$	102,111	$	142,923
MMDA		94,170		113,171
Savings		75,159		77,506
Time deposits less than $100,000		235,482		287,422
Time deposits $100,000 and over		315,287		275,318
Total interest-bearing deposits	$	822,209	$	896,340

The scheduled maturities of time deposits at December 31, 2013 are as follows (dollars in thousands):

2014	$	316,584
2015		135,836
2016		64,255
2017		17,864
2018		15,388
2019		842
Total	$	550,769

XML

Nature of Banking Activities and Significant Accounting Policies - Additional Information (Detail) (USD $)	12 Months Ended							12 Months Ended
	Dec. 31, 2013 Branch_office	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013 Chesapeake Bay to Richmond [Member] Branch_office	Dec. 31, 2013 Baltimore to Washington Corridor [Member] Branch_office	Dec. 31, 2013 Georgia Metropolitan Market [Member] Branch_office	Apr. 30, 2009 2009 Stock Incentive Plan [Member]	Dec. 31, 2013 Minimum [Member] Loans	Dec. 31, 2013 Minimum [Member] Bank Premises [Member]	Dec. 31, 2013 Minimum [Member] Equipment, Furniture and Fixtures [Member]	Dec. 31, 2013 Maximum [Member] Loans	Dec. 31, 2013 Maximum [Member] Bank Premises [Member]	Dec. 31, 2013 Maximum [Member] Equipment, Furniture and Fixtures [Member]
Organization And Significant Accounting Policies [Line Items]
Number of full-service offices	19			13	6	4
Community Bankers Trust Corporation incorporation date	Apr. 06, 2005
Number of loan production offices	2
Equity investment in BOE Statutory Trust I	$ 124,000	$ 124,000
Restricted cash reserve maintained under statutory requirement	9,400,000	9,600,000
Period of time between issuance of a loan commitment and closing and the sale of the loan								30 days			90 days
Family residential mortgage loans								1			4
Period of discontinuation of accrual of interest on mortgage and commercial loans	90 days
Maximum period exceed for charged off on consumer loan	180 days
Estimated useful lives									10 years	3 years		50 years	20 years
Other real estate, non-covered	6,244,000	10,793,000
Other real estate owned, covered by FDIC shared loss agreement	2,692,000	3,370,000
Advertising costs expense	384,000	336,000	329,000
Taxable income projection years	3 years
US state and federal income tax year open for examination beginning year	2010
US state and federal income tax year open for examination ending year	2013
Preferred stock dividend declared	$ 885,000	$ 2,200,000	$ 0
Authorized common stock for stock based compensation							2,650,000

XML

Employee Benefit Plans - Estimated Future Contributions and Benefit Payments, Which Reflect Expected Future Service (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Expected Employer Contributions
2014
Expected Benefit Payments
2014	421
2015	744
2016	227
2017	86
2018	394
2019-2023	$ 1,159

XML

Premises and Equipment

12 Months Ended

Dec. 31, 2013

Property Plant And Equipment [Abstract]

Premises and Equipment

Note 6. Premises and Equipment

A summary of the bank premises and equipment is as follows (dollars in thousands):

	December 31
	2013			2012
Land	$	7,681		$	11,808
Land improvements and buildings		21,087			23,519
Leasehold improvements		58			54
Furniture and equipment		5,574			5,912
Construction in progress		1,385			29
Total		35,785			41,322
Less accumulated depreciation and amortization		(7,913	)		(7,684	)
Bank premises and equipment, net	$	27,872		$	33,638

Depreciation expense for the year ended December 31, 2013, 2012 and 2011 amounted to $1.6 million, $1.7 million, and $1.8 million, respectively.

XML

Other Intangibles

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Other Intangibles

Note 7. Other Intangibles

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, which are being amortized over 9 years. Core deposit intangibles resulting from the Georgia and Maryland transactions, in 2008 and 2009, respectively, equaled $3.2 million and $2.1 million, respectively, and are being amortized over 9 years. The core deposit intangible related to the Georgia transaction was written off in conjunction with the sale of the branches in that market (See Note 29). The Company estimates that it will recognize amortization expense of $1.9 million for each of the next three years and the final $898,000 in the year ended December 31, 2017.

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

	December 31, 2013			December 31, 2012
Core deposit intangibles	$	20,290		$	20,290
Accumulated amortization		(12,196	)		(9,994	)
Reduction due to sale of deposits		(1,473	)		—
Balance	$	6,621		$	10,296

XML

Parent Corporation Only Financial Statements - Parent Company Only Statements of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Operating activities:
Net income	$ 5,906	$ 5,582	$ 1,444
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Issuance of common stock and stock options	258	156	245
(Increase) decrease in other assets	9,437	9,037	23,605
(Decrease) increase in other liabilities, net	388	(2,469)	(490)
Provision for loan loss		1,200	1,498
Net cash provided by operating activities	30,231	23,688	33,383
Investing activities:
Recovery of bad debt	1,015	2,439	588
Net cash provided by (used in) investing activities	29,129	(78,159)	(16,779)
Financing activities:
Cash dividends paid	(885)	(2,210)
Net cash (used in) provided by financing activities	(59,662)	56,857	(28,234)
(Decrease) increase in cash and cash equivalents	(302)	2,386	(11,630)
Parent Company [Member]
Operating activities:
Net income	5,906	5,582	1,444
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Issuance of common stock and stock options	258	156	245
Undistributed equity in loss (income) of subsidiary	1,449	(2,778)	(2,040)
(Increase) decrease in other assets	(241)	(194)	95
(Decrease) increase in other liabilities, net	(2)	(239)	171
Provision for loan loss			(17)
Net cash provided by operating activities	7,370	2,527	(102)
Investing activities:
Recovery of bad debt			17
Net cash provided by (used in) investing activities			17
Financing activities:
Repurchase of preferred stock	(7,000)
Cash dividends paid	(885)	(2,210)
Net cash (used in) provided by financing activities	(7,885)	(2,210)
(Decrease) increase in cash and cash equivalents	(515)	317	(85)
Cash and cash equivalents at beginning of the period	838	521	606
Cash and cash equivalents at end of the period	$ 323	$ 838	$ 521

XML

Accumulated Other Comprehensive (Loss) Income

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Accumulated Other Comprehensive (Loss) Income

Note 9. Accumulated Other Comprehensive (Loss) Income

The following tables present activity net of tax in accumulated other comprehensive (loss) income (AOCI) for the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):

	Year ended December 31, 2013
	Unrealized Gain/Loss on Securities			Defined Benefit Pension Plan			Total Other Comprehensive (Loss) Income
Beginning balance	$	3,903		$	(1,075	)	$	2,828
Other comprehensive (loss) income before reclassifications		(7,515	)		1,394			(6,121	)
Amounts reclassified from AOCI		(342	)		(474	)		(816	)
Net current period other comprehensive loss		(7,857	)		920			(6,937	)
Ending balance	$	(3,954	)	$	(155	)	$	(4,109	)

	Year ended December 31, 2012
	Unrealized Gain/Loss on Securities			Defined Benefit Pension Plan			Total Other Comprehensive (Loss) Income
Beginning balance	$	3,257		$	(1,038	)	$	2,219
Other comprehensive (loss) income before reclassifications		1,631			(57	)		1,574
Amounts reclassified from AOCI		(985	)		20			(965	)
Net current period other comprehensive loss		646			(37	)		609
Ending balance	$	3,903		$	(1,075	)	$	2,828

	Year ended December 31, 2011
	Unrealized Gain/Loss on Securities			Defined Benefit Pension Plan			Total Other Comprehensive (Loss) Income
Beginning balance	$	(145	)	$	—		$	(145	)
Other comprehensive (loss) income before reclassifications		5,295			(1,573	)		3,722
Amounts reclassified from AOCI		(1,893	)		535			(1,358	)
Net current period other comprehensive loss		3,402			(1,038	)		2,364
Ending balance	$	3,257		$	(1,038	)	$	2,219

The following tables present the effects of reclassifications out of AOCI on line items of consolidated income for the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):

Details about AOCI Components	Amount Reclassified from AOCI									Affected Line Item in the Unaudited Consolidated Statement of Income
	Year ended
	December 31, 2013			December 31, 2012			December 31, 2011
Unrealized (gain) loss on securities available for sale	$	(518	)	$	(1,492	)	$	(2,868	)	Gain on securities transactions, net
		176			507			975		Income tax expense
	$	(342	)	$	(985	)	$	(1,893	)	Net of tax
Amortization of defined benefit pension items
Actuarial gain (loss)	$	1,462		$	(57	)	$	(1.573	)	(1)
Prior service cost		(68	)		—			—		(1)
		(474	)		20			535		Income tax expense
	$	920		$	(37	)	$	(1.038	)	Net of tax

(1) This other comprehensive income component is included in the computation of net periodic pension cost (See Note 12, “Employee Benefit Plans” for details).

XML

Securities - Summary of Realized Gains and Losses on Sales of Securities (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Amortized Cost And Fair Value Debt Securities [Abstract]
Gross realized gains	$ 645	$ 2,236	$ 2,953
Gross realized losses	(127)	(744)	(85)
Net securities gains	$ 518	$ 1,492	$ 2,868

XML

Commitments and Contingent Liabilities - Additional Information (Detail) (USD $)	1 Months Ended		5 Months Ended
	Jan. 31, 2009	Nov. 30, 2008	Jun. 30, 2010 Installment	Jan. 30, 2009 Branch_office	Nov. 21, 2008 Branch_office
Commitments And Contingencies Disclosure [Abstract]
Bonus amount of non-brokered deposits	$ 1,816,430	$ 1,169,445
Bonus percentage of non-brokered deposits		0.50%
Percentage of loans and other assets	0.50%
Number of installments			6
Number of branch offices for assets and assumption of deposit liabilities				7	4

XML

Premises and Equipment - Summary of the Bank Premises and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Total	$ 35,785	$ 41,322
Less accumulated depreciation and amortization	(7,913)	(7,684)
Bank premises and equipment, net	27,872	33,638
Land [Member]
Property, Plant and Equipment [Line Items]
Total	7,681	11,808
Land Improvements and Buildings [Member]
Property, Plant and Equipment [Line Items]
Total	21,087	23,519
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total	58	54
Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total	5,574	5,912
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Total	$ 1,385	$ 29

XML

Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) and Related Allowance for Loan Losses - Summary of Non-Covered Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 596,337	$ 575,630
Less unearned income on loans	(164)	(148)
Non-covered loans, net of unearned income	596,173	575,482
% of Non-Covered Loans	100.00%	100.00%
Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	487,518	489,340
% of Non-Covered Loans	81.75%	85.01%
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	141,974	135,420
% of Non-Covered Loans	23.81%	23.53%
Mortgage Loans on Real Estate [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	239,389	246,521
% of Non-Covered Loans	40.14%	42.83%
Mortgage Loans on Real Estate [Member] | Construction and Land Development [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	54,745	61,127
% of Non-Covered Loans	9.18%	10.62%
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	6,369	7,230
% of Non-Covered Loans	1.07%	1.26%
Mortgage Loans on Real Estate [Member] | Multifamily [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	35,774	28,683
% of Non-Covered Loans	6.00%	4.98%
Mortgage Loans on Real Estate [Member] | Agriculture [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	9,267	10,359
% of Non-Covered Loans	1.55%	1.79%
Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	101,761	77,835
% of Non-Covered Loans	17.07%	13.52%
Consumer Installment Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	5,623	6,929
% of Non-Covered Loans	0.94%	1.20%
All Other Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 1,435	$ 1,526
% of Non-Covered Loans	0.24%	0.27%

XML

Employee Benefit Plans - Schedule of Defined Benefit Plans Change in Plan Assets (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Compensation And Retirement Disclosure [Abstract]
Fair value of plan assets, beginning of year	$ 5,255	$ 3,157
Actual return on plan assets	879	586
Employer contributions		2,000
Benefits paid	(649)	(488)
Fair value of plan assets, ending	5,485	5,255
Funded Status	$ 823	$ (536)

XML

Securities - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013 Security	Dec. 31, 2012	Dec. 31, 2011
Schedule Of Marketable Securities [Line Items]
Proceeds from sales of securities available for sale	$ 77,800,000	$ 149,900,000	$ 216,800,000
Investments held having OTTI losses	0	0	0
Number of securities with unrealized losses	256
Securities with investment grade and backed by insurance	251
Investment grade corporate obligations comprise securities with unrealized losses	5
Securities with amortized costs	109,100,000	111,700,000
Securities purchased from single issuer	$ 0	$ 0
U.S. Treasury Issue and Other U.S. Gov't Agencies [Member]
Schedule Of Marketable Securities [Line Items]
Minimum percentage of securities purchased from U.S. Treasury issue and other U.S. Government agencies	10.00%

XML

Accumulated Other Comprehensive Income - Effects of Reclassifications Out of AOCI (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended												12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Gain on securities transactions, net													$ (518)	$ (1,492)	$ (2,868)
Income tax expense	(461)	(800)	(673)	(563)	(448)	(837)	(473)	(390)	(239)	(532)	(127)	838	(2,497)	(2,148)	(60)
Total amount recognized													816	965	1,358
Unrealized Gain/Loss on Securities [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total amount recognized													342	985	1,893
Defined Benefit Pension Plan [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total amount recognized													474	(20)	(535)
Amount Reclassified from AOCI [Member] | Unrealized Gain/Loss on Securities [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Gain on securities transactions, net													(518)	(1,492)	(2,868)
Income tax expense													176	507	975
Total amount recognized													(342)	(985)	(1,893)
Amount Reclassified from AOCI [Member] | Defined Benefit Pension Plan [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Actuarial gain (loss)													1,462	(57)	(1,573)
Prior service cost													(68)
Income tax expense													(474)	20	535
Total amount recognized													$ 920	$ (37)	$ (1,038)

XML

Trust Preferred Capital Notes - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2011	Dec. 31, 2012	Dec. 12, 2003
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items]
Principal assets value for trust preferred security	$ 4,124,000		$ 4,124,000
Trusted preferred security included for capital requirement under Tier1 capital	25.00%
Trust Preferred Capital Notes [Member]
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items]
Issue of trust preferred security				4,124,000
Preferred security average interest rate	3.28%	3.43%	3.57%
Trust preferred securities redemption date	Dec. 12, 2033
Trust preferred security amortization amount		$ 143,000

XML

Preferred Stock

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Preferred Stock

Note 27. Preferred Stock

On December 19, 2008, under the Department of the Treasury’s TARP Capital Purchase Program, the Company issued to the U.S. Treasury 17,680 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A (Series A Preferred Stock), and a 10-year warrant to purchase up to 780,000 shares of common stock at an exercise price of $3.40 per share. Cumulative dividends on the Series A Preferred Stock are payable at 5% per annum through the February 2014 payment, and at a rate of 9% per annum thereafter. The warrant is exercisable at any time until December 19, 2018, and the number of shares of common stock underlying the warrant and the exercise price are subject to adjustment for certain dilutive events.

The Company received proceeds of $17.68 million for the Series A Preferred Stock and the Warrant. The Company allocated the proceeds based on a relative fair value basis between the Series A Preferred Stock and the Warrant, recording $16.64 million and $1.04 million, respectively. Fair value of the preferred stock was estimated based on a discounted cash flow model using an estimated life of 50 years and a discount rate of 12%. Fair value of the stock warrant was estimated using a Black-Scholes model assuming stock price volatility of 27.5%, a dividend yield of 0.5%, a risk-free rate of 1.35% and an expected life of five years. The $16.64 million of Series A Preferred Stock is net of a discount of $1.04 million. The discount is being accreted to the $17.68 million redemption price over a five year period. The accretion of the discount and dividends on the preferred stock reduce retained earnings.

Each share of Series A Preferred Stock issued and outstanding has no par value, has a liquidation preference of $1,000 and is redeemable at the Company’s option, subject to approval of the Federal Reserve, at a redemption price equal to $1,000 plus accrued and unpaid dividends. The Series A Preferred Stock has a preference over the Company’s common stock upon liquidation. Dividends on the preferred stock, if declared, are payable quarterly in arrears. The Company’s ability to declare or pay dividends on, or purchase, redeem or otherwise acquire, its common stock is subject to certain restrictions in the event that the Company fails to pay or set aside full dividends on the preferred stock for the latest completed dividend period.

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.

During 2013, the Company repurchased 7,000 shares of the original 17,680 shares of Series A Preferred Stock. The Company funded the repurchase through the earnings of its banking subsidiary. The form of the repurchase was a redemption under the terms of the Series A Preferred Stock. The Company paid the Treasury $7.0 million, which represented 100% of the par value of the preferred stock repurchased plus accrued dividends with respect to such shares.

As of December 31, 2013, the Company is current in its payment of dividends with respect to the Series A Preferred Stock.

XML

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Schedule of Activity of Direct and Indirect Loans

The table below presents the activity for both direct and indirect loans at December 31, 2013 and 2012 (dollars in thousands).

	2013			2012
Balance, beginning of year	$	3,115		$	3,703
Principal additions		1,765			575
Repayments and reclassifications		(2,579	)		(1,163	)
Balance, end of year	$	2,301		$	3,115

XML

Earnings Per Common Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Common Share

Note 14. Earnings Per Common Share

Basic earnings (loss) per common 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 Available to Common Stockholders (Numerator)		Weighted Average Common Shares (Denominator)		Per Common Share Amount
For the Twelve Months ended December 31, 2013
Shares issued				21,689
Unissued vested restricted stock				11
Basic EPS	$	4,787		21,700	$	0.22
Effect of dilutive stock awards and options		—		222		—
Diluted EPS	$	4,787		21,922	$	0.22
For the Twelve Months ended December 31, 2012
Shares issued				21,640
Unissued vested restricted stock				7
Basic EPS	$	4,478		21,647	$	0.21
Effect of dilutive stock awards and options		—		70		—
Diluted EPS	$	4,478		21,717	$	0.21
For the Twelve Months ended December 31, 2011
Basic EPS	$	354		21,565	$	0.02
Effect of dilutive stock awards and options				—		—
Diluted EPS	$	354		21,565	$	0.02

Excluded from the computation of diluted earnings per common share were approximately 40,000, 1.3 million, and 1.2 million of awards, options or warrants during 2013, 2012 and 2011, respectively, because their inclusion would be antidilutive.

XML

Stock Option Plans - Summary of Non-Vested Options and Restricted Stock Outstanding (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option number of shares, Beginning Balance	299,000
Granted Option number of shares	230,000
Vested, Option number of shares	(87,313)
Forfeited, Option number of shares	(31,750)
Option number of shares, Ending Balance	409,937	299,000
Weighted Average Grant Date Fair Value, Beginning Balance	$ 0.47
Granted, weighted average grant date fair value	$ 1.16	$ 0.46	$ 0.36
Vested, Weighted Average Grant Date Fair Value	$ 0.48
Forfeited, Weighted Average Grant Date Fair Value	$ 0.91
Weighted Average Grant Date Fair Value, Ending Balance	$ 0.82	$ 0.47
Vested, Restricted Stock number of shares	(11,000)	(7,000)
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Stock number of shares, Beginning Balance	7,500
Granted, Restricted Stock number of shares
Vested, Restricted Stock number of shares	(3,750)
Forfeited, Restricted Stock number of shares
Restricted Stock number of shares, Ending Balance	3,750
Weighted Average Grant Date Fair Value, Beginning Balance	$ 2.78
Granted, Weighted Average Grant Date Fair Value
Vested, Weighted Average Grant Date Fair Value	$ 2.78
Forfeited, Weighted Average Grant Date Fair Value
Weighted Average Exercise Price, Ending Balance	$ 2.78

XML

Financial Instruments With Off-Balance Sheet Risk

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Financial Instruments With Off-Balance Sheet Risk

Note 19. Financial Instruments With Off-Balance Sheet Risk

The Bank is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The contract amounts of those instruments reflect the extent of involvement the Bank has in particular classes of financial instruments.

The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

A summary of the contract amounts of the Bank’s exposure to off-balance sheet risk as of December 31, 2013 and 2012, is as follows (dollars in thousands):

	2013		2012
Commitments with off-balance sheet risk:
Commitments to extend credit	$	72,183	$	64,056
Standby letters of credit		9,978		9,487
Total commitments with off-balance sheet risk	$	82,161	$	73,543

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 Bank 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 commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit are generally uncollateralized and usually do not contain a specified maturity date and 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 customers. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s evaluation of the counterparty. Since most of the letters of credit are expected to expire without being drawn upon, they do not necessarily represent future cash requirements.

XML

Income Taxes - Allocation of the Income Tax Expense Between Current and Deferred Portions (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended												12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Current tax provision														$ 22	$ (907)
Deferred tax expense (benefit)													2,497	2,126	967
Income tax expense (benefit)	$ 461	$ 800	$ 673	$ 563	$ 448	$ 837	$ 473	$ 390	$ 239	$ 532	$ 127	$ (838)	$ 2,497	$ 2,148	$ 60

XML

Stock Option Plans (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value of Each Option Granted is Estimated on the Date of Grant

The fair value of each option granted is estimated on the date of grant using the “Black Scholes Option Pricing” method with the following assumptions for the years ended December 31, 2013, 2012 and 2011:

	2013			2012	2011
Expected volatility		50.0	%	50.0%		50.0	%
Expected dividend		2.0	%	2.0% - 3.0%		3.0	%
Expected term (years)		6.25		6.25		5.50
Risk free rate		1.38	%	0.77% - 1.31%		1.12	%

Summary of Grants Shares Issued and Fair Market Value

A summary of these grants for the years ended December 31, 2013, 2012 and 2011 is shown in the following table:

	For the Year Ended
	2013				2012				2011
Month	Shares Issued		Fair Market Value		Shares Issued		Fair Market Value		Shares Issued		Fair Market Value
February		—	$	—		—	$	—		39,972	$	1.23
March		8,751		3.37		—		—		4,082		1.33
June		9,096		3.24		15,925		2.04		115,040		1.13
September		8,073		3.65		13,477		2.41		—		—
December		7,965		3.70		13,260		2.45		—		—

Summary of Non-Vested Options and Restricted Stock Outstanding

The following table summarizes non-vested options and restricted stock outstanding at December 31, 2013:

	Options					Restricted Stock
	Number of Shares			Weighted Average Grant-Date Fair Value		Number of Shares			Weighted Average Grant-Date Fair Value
Non-vested at beginning of the year		299,000		$	0.47		7,500		$	2.78
Granted		230,000			1.16		—			—
Vested		(87,313	)		0.48		(3,750	)		2.78
Forfeited		(31,750	)		0.91		—			—
Non-vested at end of year		409,937			0.82		3,750			2.78

2009 Stock Option Plan [Member]

Summary of Options Outstanding

A summary of options outstanding for the year ended December 31, 2013, is shown in the following table:

	Options
	Number of Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding at beginning of year		412,000		$	1.74
Granted		230,000			2.86
Forfeited		(31,750	)		2.65
Expired		—			—
Exercised		(5,000	)		1.25
Outstanding at end of year		605,250			2.12	$	992,618
Options outstanding and exercisable at end of year		195,313			1.95	$	352,849
Weighted average remaining contractual life for outstanding and exercisable shares at year end		87 months

TFC and BOE Stock Option Plans [Member]

Summary of Options Outstanding

A summary of the options outstanding for the year ended December 31, 2013 is shown in the following table:

	Options
	Number of Shares			Weighted Average Exercise Price
Outstanding at beginning of the year		91,078		$	5.36
Granted		—			—
Forfeited		(1,896	)		5.01
Expired		(49,048	)		5.72
Exercised		—			—
Outstanding at end of year		40,134			4.94
Options outstanding and exercisable at end of the year		40,134			4.94
Weighted average remaining contractual life for outstanding and exercisable shares at year end		10 months

XML

Employee Benefit Plans - Weighted-Average Assumptions Used in the Measurement of the Company's Benefit Obligation and Net Periodic Benefit Cost (Detail)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Compensation And Retirement Disclosure [Abstract]
Discount rate used for net periodic pension cost	4.00%	4.50%	5.50%
Discount rate used for disclosure	5.00%	4.00%	4.50%
Expected return on plan assets	8.00%	8.00%	8.00%

XML

FDIC Agreements and FDIC Indemnification Asset (Tables)

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Summary Balances of FDIC Indemnification Asset

The following table presents the balances of the FDIC indemnification asset at December 31, 2013, 2012 and 2011 (dollars in thousands):

				Estimated			Amortizable			FDIC
	Anticipated			Loss			Premium			Indemnification
	Expected			Sharing			(Discount)			Asset
	Losses			Value			at PV			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		622			497						497
Decreases:
Net amortization of premium								(6,936	)		(6,936	)
Reclassifications to FDIC receivable:
Net loan charge-offs and recoveries		(1,321	)		(1,057	)					(1,057	)
OREO sales		(1,140	)		(912	)					(912	)
Reimbursements requested from FDIC		(495	)		(396	)					(396	)
Reforecasted change in anticipated expected losses		(3,174	)		(2,539	)		2,539			—
December 31, 2012		23,205			18,564			15,273			33,837
Increases:
Writedown of OREO property to FMV		344			275						275
Decreases:
Net amortization of premium								(6,449	)		(6,449	)
Reclassifications to FDIC receivable:
Net loan charge-offs and recoveries		(1,268	)		(1,014	)					(1,014	)
OREO sales		(1,180	)		(944	)					(944	)
Reimbursements requested from FDIC		(370	)		(296	)					(296	)
Reforecasted change in anticipated expected losses		(7,217	)		(5,774	)		5,774			—
December 31, 2013	$	13,514		$	10,811		$	14,598		$	25,409

XML

Employee Benefit Plans - Estimated Amounts that will Amortize from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2014 Forecast [Member]
Defined Benefit Plan Net Periodic Benefit Cost [Line Items]
Prior service cost				$ 5
Net loss due to settlement	147	105	3	11
Total amount recognized				$ 16

XML

Consolidated Statements of Comprehensive (Loss) Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Amounts Reclassified Out Of Accumulated Other Comprehensive Income Loss [Abstract]
Net income	$ 5,906	$ 5,582	$ 1,444
Unrealized gains on investment securities:
Change in unrealized (loss) gain in investment securities	(11,386)	2,472	8,023
Tax related to unrealized loss (gain) in investment securities	3,871	(841)	(2,728)
Reclassification adjustment for gain in securities sold	(518)	(1,492)	(2,868)
Tax related to realized gain in securities sold	176	507	975
Defined benefit pension plan:
Change in prior service cost	(68)
Change unrealized gain (loss) in plan assets	1,462	(57)	(1,573)
Tax related to defined benefit pension plan	(474)	20	535
Total other comprehensive (loss) income	(6,937)	609	2,364
Total comprehensive (loss) income	$ (1,031)	$ 6,191	$ 3,808

XML

Other Intangibles - Other Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	$ (12,196)	$ (9,994)
Reduction due to sale of deposits	(1,473)
Balance	6,621	10,297
Core Deposit Intangibles [Member]
Finite-Lived Intangible Assets [Line Items]
Core deposit intangibles	$ 20,290	$ 20,290

XML

Loans Not Covered by FDIC Shared-Loss Agreements (Non-covered Loans) and Related Allowance for Loan Losses

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

Loans Not Covered by FDIC Shared-Loss Agreements (Non-covered Loans) and Related Allowance for Loan Losses

Note 3. Loans Not Covered by FDIC Shared-loss Agreements (Non-covered Loans) and Related Allowance for Loan Losses

The Company’s non-covered loans at December 31, 2013 and 2012 were comprised of the following (dollars in thousands):

	December 31, 2013						December 31, 2012
	Amount			% of Non-Covered Loans			Amount			% of Non-Covered Loans
Mortgage loans on real estate:
Residential 1-4 family	$	141,974			23.81	%	$	135,420			23.53	%
Commercial		239,389			40.14			246,521			42.83
Construction and land development		54,745			9.18			61,127			10.62
Second mortgages		6,369			1.07			7,230			1.26
Multifamily		35,774			6.00			28,683			4.98
Agriculture		9,267			1.55			10,359			1.79
Total real estate loans		487,518			81.75			489,340			85.01
Commercial loans		101,761			17.07			77,835			13.52
Consumer installment loans		5,623			0.94			6,929			1.20
All other loans		1,435			0.24			1,526			0.27
Gross loans		596,337			100.00	%		575,630			100.00	%
Less unearned income on loans		(164	)					(148	)
Non-covered loans, net of unearned income	$	596,173					$	575,482

The Company held $38.5 million and $40.9 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 December 31, 2013 and 2012, 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 $2.5 million and $3.4 million at December 31, 2013 and 2012, respectively. Unamortized purchase premium is recognized as an adjustment of the related loan yield on a straight line basis.

At December 31, 2013 and 2012, the Company’s allowance for credit losses is comprised of the following: (i) any 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 FASB ASC 310.

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 years ended December 31, 2013, 2012, and 2011. For the years ended December 31, 2013, 2012 and 2011, estimated interest income of $980,000, $1.3 million and $1.8 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 December 31, 2013 (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	$	3,485	$	3,739	$	881
Commercial		920		1,091		150
Construction and land development		4,148		5,298		508
Second mortgages		225		226		40
Multifamily		—		—		—
Agriculture		—		—		—
Total real estate loans		8,778		10,354		1,579
Commercial loans		127		794		16
Consumer installment loans		49		51		9
All other loans		—		—		—
Subtotal impaired loans with valuation allowance	$	8,954	$	11,199	$	1,604
With no related allowance recorded:
Mortgage loans on real estate:
Residential 1-4 family	$	1,189	$	1,228	$	—
Commercial		1,714		1,969		—
Construction and land development		1,734		4,335		—
Second mortgages		—		—		—
Multifamily		—		—		—
Agriculture		204		222		—
Total real estate loans		4,841		7,754		—
Commercial loans		—		—		—
Consumer installment loans		6		6		—
All other loans		—		—		—
Subtotal impaired loans without valuation allowance	$	4,847	$	7,760	$	—
Total:
Mortgage loans on real estate:
Residential 1-4 family	$	4,674	$	4,967	$	881
Commercial		2,634		3,060		150
Construction and land development		5,882		9,633		508
Second mortgages		225		226		40
Multifamily		—		—		—
Agriculture		204		222		—
Total real estate loans		13,619		18,108		1,579
Commercial loans		127		794		16
Consumer installment loans		55		57		9
All other loans		—		—		—
Total impaired loans	$	13,801	$	18,959	$	1,604

(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, 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	$	3,838	$	4,021	$	897
Commercial		2,741		2,827		725
Construction and land development		7,412		10,355		850
Second mortgages		124		170		22
Multifamily		—		—		—
Agriculture		250		580		20
Total real estate loans		14,365		17,953		2,514
Commercial loans		509		582		121
Consumer installment loans		78		79		21
All other loans		—		—		—
Subtotal impaired loans with valuation allowance	$	14,952	$	18,614	$	2,656
With no related allowance recorded:
Mortgage loans on real estate:
Residential 1-4 family	$	2,702	$	3,094	$	—
Commercial		3,076		3,281		—
Construction and land development		1,578		1,961		—
Second mortgages		48		48		—
Multifamily		—		—		—
Agriculture		—		—		—
Total real estate loans		7,404		8,384		—
Commercial loans		—		183		—
Consumer installment loans		9		9		—
All other loans		—		—		—
Subtotal impaired loans without valuation allowance	$	7,413	$	8,576	$	—
Total:
Mortgage loans on real estate:
Residential 1-4 family	$	6,540	$	7,115	$	897
Commercial		5,817		6,108		725
Construction and land development		8,990		12,316		850
Second mortgages		172		218		22
Multifamily		—		—		—
Agriculture		250		580		20
Total real estate loans		21,769		26,337		2,514
Commercial loans		509		765		121
Consumer installment loans		87		88		21
All other loans		—		—		—
Total impaired loans	$	22,365	$	27,190	$	2,656

(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 years ended December 31, 2013, 2012 and 2011 (dollars in thousands):

	Average Recorded Investment
	2013		2012		2011
Mortgage loans on real estate:
Residential 1-4 family	$	5,607	$	6,770	$	8,731
Commercial		4,225		10,505		12,212
Construction and land development		7,436		10,602		21,345
Second mortgages		198		184		263
Multifamily		—		—		—
Agriculture		227		93		100
Total real estate loans		17,693		28,154		42,651
Commercial loans		318		773		1,704
Consumer installment loans		72		137		101
All other loans		—		—		—
Total impaired loans	$	18,083	$	29,064	$	44,456

The majority of impaired loans are also nonaccruing for which no interest income was recognized during each of the years ended December, 2013, 2012 and 2011. No significant amounts of interest income were recognized on accruing impaired loans for the years ended December, 2013, 2012 and 2011.

The following table presents non-covered nonaccrual loans by category (dollars in thousands):

	December 31
	2013		2012
Mortgage loans on real estate:
Residential 1-4 family	$	4,229	$	5,562
Commercial		1,382		5,818
Construction and land development		5,882		8,815
Second mortgages		225		141
Multifamily		—		—
Agriculture		205		250
Total real estate loans		11,923		20,586
Commercial loans		127		385
Consumer installment loans		55		77
All other loans		—		—
Total loans	$	12,105	$	21,048

Troubled debt restructurings, special mention loans, and some substandard 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 December 31, 2013 and 2012 is set forth in the table below (dollars in thousands):

	December 31
	2013		2012
Nonaccruals	$	12,105	$	21,048
Trouble debt restructure and still accruing		1,696		847
Special mention		—		299
Substandard and still accruing		—		171
Total impaired	$	13,801	$	22,365

The following tables present an age analysis of past due status of non-covered loans by category for the years ended December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013
	30-89 Days Past Due		90 Days Past Due		Total Past Due		Current		Total Loans Receivable		Recorded Investment 90 Days and Accruing
Mortgage loans on real estate:
Residential 1-4 family	$	1,455	$	4,229	$	5,684	$	136,290	$	141,974	$	—
Commercial		—		1,382		1,382		238,007		239,389		—
Construction and land development		242		5,882		6,124		48,621		54,745		—
Second mortgages		—		225		225		6,144		6,369		—
Multifamily		—		—		—		35,774		35,774		—
Agriculture		—		205		205		9,062		9,267		—
Total real estate loans		1,697		11,923		13,620		473,898		487,518		—
Commercial loans		115		127		242		101,519		101,761		—
Consumer installment loans		58		55		113		5,510		5,623		—
All other loans		—		—		—		1,435		1,435		—
Total loans	$	1,870	$	12,105	$	13,975	$	582,362	$	596,337	$	—

	December 31, 2012
	30-89 Days Past Due		90 Days Past Due		Total Past Due		Current		Total Loans Receivable		Recorded Investment 90 Days and Accruing
Mortgage loans on real estate:
Residential 1-4 family	$	1,433	$	5,797	$	7,230	$	128,190	$	135,420	$	235
Commercial		—		5,818		5,818		240,703		246,521		—
Construction and land development		298		9,089		9,387		51,740		61,127		274
Second mortgages		—		141		141		7,089		7,230		—
Multifamily		—		—		—		28,683		28,683		—
Agriculture		—		250		250		10,109		10,359		—
Total real estate loans		1,731		21,095		22,826		466,514		489,340		509
Commercial loans		85		385		470		77,365		77,835		—
Consumer installment loans		40		77		117		6,812		6,929		—
All other loans		—		—		—		1,526		1,526		—
Total loans	$	1,856	$	21,557	$	23,413	$	552,217	$	575,630	$	509

Activity in the allowance for loan losses on non-covered loans for the years ended December 31, 2013, 2012 and 2011 is presented in the following tables (dollars in thousands):

	December 31, 2012		Provision Allocation			Charge offs			Recoveries		December 31, 2013
Mortgage loans on real estate:
Residential 1-4 family	$	3,985	$	332		$	(432	)	$	56	$	3,941
Commercial		2,482		1,269			(1,580	)		20		2,191
Construction and land development		3,773		(1,378	)		(877	)		694		2,212
Second mortgages		142		9			(105	)		48		94
Multifamily		303		(170	)		—			—		133
Agriculture		61		(20	)		(5	)		39		75
Total real estate loans		10,746		42			(2,999	)		857		8,646
Commercial loans		1,961		(44	)		(325	)		82		1,674
Consumer installment loans		195		(6	)		(167	)		76		98
All other loans		18		8			—			—		26
Total loans	$	12,920	$	—		$	(3,491	)	$	1,015	$	10,444

	December 31, 2011		Provision Allocation			Charge offs			Recoveries		December 31, 2012
Mortgage loans on real estate:
Residential 1-4 family	$	3,451	$	2,283		$	(1,786	)	$	37	$	3,985
Commercial		3,048		15			(654	)		73		2,482
Construction and land development		5,729		(1,539	)		(2,058	)		1,641		3,773
Second mortgages		296		(165	)		(45	)		56		142
Multifamily		224		79			—			—		303
Agriculture		25		75			(39	)		—		61
Total real estate loans		12,773		748			(4,582	)		1,807		10,746
Commercial loans		1,810		604			(695	)		242		1,961
Consumer installment loans		241		91			(220	)		83		195
All other loans		11		7			—			—		18
Total loans	$	14,835	$	1,450		$	(5,497	)	$	2,132	$	12,920

	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

Included in charge-offs for the year ended December 31, 2013 was a $500,000 writedown arising from the transfer of a loan from non-covered loans to loans held for sale.

The following tables present information on the non-covered loans evaluated for impairment in the allowance for loan losses as of December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013
	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	$	923	$	3,018	$	3,941	$	6,708	$	135,266	$	141,974
Commercial		200		1,991		2,191		8,016		231,373		239,389
Construction and land development		651		1,561		2,212		8,619		46,126		54,745
Second mortgages		42		52		94		254		6,115		6,369
Multifamily		—		133		133		—		35,774		35,774
Agriculture		—		75		75		205		9,062		9,267
Total real estate loans		1,816		6,830		8,646		23,802		463,716		487,518
Commercial loans		18		1,656		1,674		192		101,569		101,761
Consumer installment loans		9		89		98		57		5,566		5,623
All other loans		—		26		26		—		1,435		1,435
Total loans	$	1,843	$	8,601	$	10,444	$	24,051	$	572,286	$	596,337

	December 31, 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	$	1,003	$	2,982	$	3,985	$	10,340	$	125,080	$	135,420
Commercial		864		1,618		2,482		15,636		230,885		246,521
Construction and land development		1,306		2,467		3,773		14,173		46,954		61,127
Second mortgages		29		113		142		234		6,996		7,230
Multifamily		—		303		303		—		28,683		28,683
Agriculture		21		40		61		250		10,109		10,359
Total real estate loans		3,223		7,523		10,746		40,633		448,707		489,340
Commercial loans		125		1,836		1,961		605		77,230		77,835
Consumer installment loans		22		173		195		92		6,837		6,929
All other loans		—		18		18		—		1,526		1,526
Total loans	$	3,370	$	9,550	$	12,920	$	41,330	$	534,300	$	575,630

⁽¹⁾  The category “Individually Evaluated for Impairment” includes loans individually evaluated for impairment and determined not to be impaired. These loans totaled $10.0 million and $19.0 million at December 31, 2013 and 2012, respectively. The allowance for loans losses allocated to these loans was $239,000 and $714,000 at December 31, 2013 and 2012, 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 $38.5 million and $40.9 million at December 31, 2013 and 2012, 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 December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013
	Pass		Special Mention		Substandard		Doubtful		Total
Mortgage loans on real estate:
Residential 1-4 family	$	127,074	$	8,193	$	6,707	$	—	$	141,974
Commercial		221,486		11,135		6,768		—		239,389
Construction and land development		43,949		2,178		8,618		—		54,745
Second mortgages		5,687		428		254		—		6,369
Multifamily		35,774		—		—		—		35,774
Agriculture		9,063		—		204		—		9,267
Total real estate loans		443,033		21,934		22,551		—		487,518
Commercial loans		98,614		2,955		192		—		101,761
Consumer installment loans		5,344		222		57		—		5,623
All other loans		1,435		—		—		—		1,435
Total loans	$	548,426	$	25,111	$	22,800	$	—	$	596,337

	December 31, 2012
	Pass		Special Mention		Substandard		Doubtful		Total
Mortgage loans on real estate:
Residential 1-4 family	$	118,931	$	6,496	$	9,993	$	—	$	135,420
Commercial		209,347		21,540		15,478		156		246,521
Construction and land development		36,261		10,954		13,912		—		61,127
Second mortgages		6,519		477		234		—		7,230
Multifamily		27,514		1,169		—		—		28,683
Agriculture		10,109		—		250		—		10,359
Total real estate loans		408,681		40,636		39,867		156		489,340
Commercial loans		76,148		1,205		482		—		77,835
Consumer installment loans		6,617		220		92		—		6,929
All other loans		1,526		—		—		—		1,526
Total loans	$	492,972	$	42,061	$	40,441	$	156	$	575,630

In accordance with FASB ASU 2011-02, Receivables (Topic 310): A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring, the Company assesses all loan modifications to determine whether they are considered troubled debt restructurings (TDRs) under the guidance. During the year ended December 31, 2013, the Bank modified two residential 1-4 family loans that were considered to be TDRs. The Company extended the terms and lowered the interest rate for both of these loans, which had an aggregate pre- and post-modification balance of $501,000.

During the year ended December 31, 2012, the Bank modified six loans that were considered to be TDRs. The Company extended the terms for four of these loans and the interest rate was lowered for five of these loans. These restructures included payments of $202,000 for one of these loans. The following table presents information relating to loans modified as TDRs during the year ended December 31, 2012 (dollars in thousands):

	Year ended December 31, 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
Total loans		6	$	5,590	$	5,388

A loan is considered to be in default if it is 90 days or more past due. There was one TDR that had been restructured during the previous 12 months that resulted in default during the year ended December 31, 2013. This residential 1-4 family loan had a recorded investment of $173,000.

During the year ended December 31, 2012, one loan that had been restructured during the previous 12 months was in default. This construction real estate loan had a recorded investment of $519,000 at December 31, 2012.

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

At December 31, 2013, the Company had 1-4 family mortgages in the amount of $139.3 million pledged as collateral to the Federal Home Loan Bank (FHLB) for a total borrowing capacity of $88.1 million.

XML

Quarterly Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Summary of Quarterly Data

	Year Ended December 31
	2013								2012
	First		Second		Third		Fourth		First			Second		Third		Fourth
Interest and dividend income	$	12,166	$	12,491	$	13,171	$	12,217	$	13,809		$	14,119	$	12,872	$	12,919
Interest expense		1,894		1,791		1,749		1,644		2,712			2,587		2,339		2,054
Net interest income		10,272		10,700		11,422		10,573		11,097			11,532		10,533		10,865
Provision for loan losses		—		—		—		—		250			500		—		450
Net interest income after provision for loan losses		10,272		10,700		11,422		10,573		10,847			11,032		10,533		10,415
Noninterest income		1,326		1,338		593		1,467		975			1,462		2,470		1,299
Noninterest expenses		9,711		9,758		9,433		10,386		10,442			10,811		10,357		9,693
Income (loss) before income taxes		1,887		2,280		2,582		1,654		1,380			1,683		2,646		2,021
Income tax expense (benefit)		563		673		800		461		390			473		837		448
Net income (loss)	$	1,324	$	1,607	$	1,782	$	1,193	$	990		$	1,210	$	1,809	$	1,573
Dividends paid on preferred stock		221		221		208		235		221			221		221		221
Accretion of discount on preferred stock		58		59		73		44		55			55		55		55
Accumulated preferred dividends		—		—		—		—		—			—		—		—
Net income (loss) available to common shareholders	$	1,045	$	1,327	$	1,501	$	914	$	714		$	934	$	1,533	$	1,297
Earnings (loss) per common share, basic	$	0.05	$	0.06	$	0.07	$	0.04	$	0.03		$	0.04	$	0.07	$	0.06
Earnings (loss) per common share, diluted	$	0.05	$	0.06	$	0.07	$	0.04	$	0.03		$	0.04	$	0.07	$	0.06
									2011
									First			Second		Third		Fourth
Interest and dividend income									$	13,394		$	14,492	$	14,272	$	13,877
Interest expense										3,311			3,079		2,974		2,864
Net interest income										10,083			11,413		11,298		11,013
Provision for loan losses										1,498			—		—		—
Net interest income after provision for loan losses										8,585			11,413		11,298		11,013
Noninterest income										2,430			973		3,355		1,476
Noninterest expenses										13,047			11,738		12,699		11,555
Income (loss) before income taxes										(2,032	)		648		1,954		934
Income tax expense (benefit)										(838	)		127		532		239
Net income (loss)									$	(1,194	)	$	521	$	1,422	$	695
Dividends paid on preferred stock										—			—		—		—
Accretion of discount on preferred stock										51			53		51		51
Accumulated preferred dividends										221			221		221		221
Net income (loss) available to common shareholders									$	(1,466	)	$	247	$	1,150	$	423
Earnings (loss) per common share, basic									$	(0.07	)	$	0.01	$	0.05	$	0.02
Earnings (loss) per common share, diluted									$	(0.07	)	$	0.01	$	0.05	$	0.02

XML

Loans Covered by FDIC Shared Loss Agreements (Covered Loans) - Summary of Changes in Accretable Yield (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Receivables [Abstract]
Beginning Balance	$ 54,144	$ 56,310	$ 75,718
Accretion	(11,936)	(14,105)	(17,525)
Reclassification from (to) nonaccretable yield	9,307	11,939	(1,883)
Ending Balance	$ 51,515	$ 54,144	$ 56,310

XML

Employee Benefit Plans - Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Compensation And Retirement Disclosure [Abstract]
Net (gain)/loss	$ (1,462)	$ 57	$ 1,573
Prior service cost	68
Total amount recognized	$ (1,394)

XML

Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) and Related Allowance for Loan Losses - Summary of Financial Receivable Impaired Average Recorded Investment (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Average Recorded Investment	$ 18,083	$ 29,064	$ 44,456
Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Average Recorded Investment	17,693	28,154	42,651
Commercial Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Average Recorded Investment	318	773	1,704
Consumer Installment Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Average Recorded Investment	72	137	101
All Other Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Average Recorded Investment
Residential 1-4 Family [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Average Recorded Investment	5,607	6,770	8,731
Commercial [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Average Recorded Investment	4,225	10,505	12,212
Construction and Land Development [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Average Recorded Investment	7,436	10,602	21,345
Second Mortgages [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Average Recorded Investment	198	184	263
Multifamily [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Average Recorded Investment
Agriculture [Member] | Mortgage Loans on Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Average Recorded Investment	$ 227	$ 93	$ 100

XML

Minimum Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Minimum Regulatory Capital Requirements

Note 20. Minimum Regulatory Capital Requirements

The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and tier 1 capital (as defined in the regulations) to risk weighted assets (as defined), and of tier 1 capital (as defined) to adjusted average total assets (as defined). Management believes, as of December 31, 2013 and 2012, that the Company and Bank met all capital adequacy requirements to which they are subject.

As of December 31, 2013, based on regulatory guidelines, the Company believes that it is well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Company and the Bank must maintain minimum total risk-based, tier 1 risk-based, and tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that date that management believes have changed the Bank’s category.

The Company’s and the Bank’s actual capital amounts and ratios are presented in the following table (dollars in thousands).

	Actual					Required for Capital Adequacy Purposes					Required in Order to be Well Capitalized Under Prompt Corrective Action
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2013:
Total Capital to risk weighted assets
Company	$	113,805		16.82	%	$	54,124		8.00	%		NA		NA
Bank		113,624		16.79	%		54,132		8.00	%		67,666		10.00	%
Tier 1 Capital to risk weighted assets
Company		105,672		15.62	%		27,062		4.00	%		NA		NA
Bank		105,489		15.59	%		27,066		4.00	%		40,599		6.00	%
Tier 1 Capital to adjusted average total assets
Company		105,672		9.52	%		44,396		4.00	%		NA		NA
Bank		105,489		9.50	%		44,402		4.00	%		55,503		5.00	%
As of December 31, 2012:
Total Capital to risk weighted assets
Company	$	112,463		16.99	%	$	52,969		8.00	%		NA		NA
Bank		111,687		16.87	%		52,971		8.00	%		66,214		10.00	%
Tier 1 Capital to risk weighted assets
Company		104,521		15.79	%		26,485		4.00	%		NA		NA
Bank		103,745		15.67	%		26,486		4.00	%		39,728		6.00	%
Tier 1 Capital to adjusted average total assets
Company		104,521		9.41	%		44,444		4.00	%		NA		NA
Bank		103,745		9.34	%		44,449		4.00	%		55,561		5.00	%

XML

Earnings Per Common Share - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Earnings Per Share [Abstract]
Anti-dilutive shares	40,000	1,300,000	1,200,000

XML

Lease Commitments - Summary of Non-Cancelable Operating Leases for Bank Premises that have Initial or Remaining Terms (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Leases [Abstract]
2014	$ 758
2015	694
2016	650
2017	597
2018	583
Thereafter	2,942
Total of future payments	$ 6,224

XML

Fair Values of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned (OREO), non-covered	$ 6,244	$ 10,793
Other real estate owned (OREO), covered	2,692	3,370
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, non-covered	10,334	15,552
Other real estate owned (OREO), non-covered	6,244	10,793
Other real estate owned (OREO), covered	2,692	3,370
Total assets at fair value	19,270	29,715
Total liabilities at fair value
Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, non-covered
Other real estate owned (OREO), non-covered
Other real estate owned (OREO), covered
Total assets at fair value
Total liabilities at fair value
Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, non-covered	1,791	4,039
Total assets at fair value	1,791	4,039
Total liabilities at fair value
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, non-covered	8,543	11,513
Other real estate owned (OREO), non-covered	6,244	10,793
Other real estate owned (OREO), covered	2,692	3,370
Total assets at fair value	17,479	25,676
Total liabilities at fair value

XML

Loans Not Covered by FDIC Shared Loss Agreement (Non-Covered Loans) and Related Allowance for Loan Losses - Non-Covered Loans Evaluated for Impairment (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Loan Losses, Total	$ 10,444	$ 12,920
Total Loans	596,337	575,630
Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	487,518	489,340
Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	101,761	77,835
Consumer Installment Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	5,623	6,929
All Other Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	1,435	1,526
Residential 1-4 Family [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	141,974	135,420
Commercial [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	239,389	246,521
Construction and Land Development [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	54,745	61,127
Second Mortgages [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	6,369	7,230
Multifamily [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	35,774	28,683
Agriculture [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	9,267	10,359
Allowance for Loan Losses [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment	1,843	3,370
Allowance for Loan Losses, Collectively Evaluated for Impairment	8,601	9,550
Allowance for Loan Losses, Total	10,444	12,920
Allowance for Loan Losses [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment	1,816	3,223
Allowance for Loan Losses, Collectively Evaluated for Impairment	6,830	7,523
Allowance for Loan Losses, Total	8,646	10,746
Allowance for Loan Losses [Member] | Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment	18	125
Allowance for Loan Losses, Collectively Evaluated for Impairment	1,656	1,836
Allowance for Loan Losses, Total	1,674	1,961
Allowance for Loan Losses [Member] | Consumer Installment Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment	9	22
Allowance for Loan Losses, Collectively Evaluated for Impairment	89	173
Allowance for Loan Losses, Total	98	195
Allowance for Loan Losses [Member] | All Other Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Loan Losses, Collectively Evaluated for Impairment	26	18
Allowance for Loan Losses, Total	26	18
Allowance for Loan Losses [Member] | Residential 1-4 Family [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment	923	1,003
Allowance for Loan Losses, Collectively Evaluated for Impairment	3,018	2,982
Allowance for Loan Losses, Total	3,941	3,985
Allowance for Loan Losses [Member] | Commercial [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment	200	864
Allowance for Loan Losses, Collectively Evaluated for Impairment	1,991	1,618
Allowance for Loan Losses, Total	2,191	2,482
Allowance for Loan Losses [Member] | Construction and Land Development [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment	651	1,306
Allowance for Loan Losses, Collectively Evaluated for Impairment	1,561	2,467
Allowance for Loan Losses, Total	2,212	3,773
Allowance for Loan Losses [Member] | Second Mortgages [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment	42	29
Allowance for Loan Losses, Collectively Evaluated for Impairment	52	113
Allowance for Loan Losses, Total	94	142
Allowance for Loan Losses [Member] | Multifamily [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Loan Losses, Collectively Evaluated for Impairment	133	303
Allowance for Loan Losses, Total	133	303
Allowance for Loan Losses [Member] | Agriculture [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment		21
Allowance for Loan Losses, Collectively Evaluated for Impairment	75	40
Allowance for Loan Losses, Total	75	61
Recorded Investment in Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment in Loans, Individually Evaluated for Impairment	24,051	41,330
Recorded Investment in Loans, Collectively Evaluated for Impairment	572,286	534,300
Total Loans	596,337	575,630
Recorded Investment in Loans [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment in Loans, Individually Evaluated for Impairment	23,802	40,633
Recorded Investment in Loans, Collectively Evaluated for Impairment	463,716	448,707
Total Loans	487,518	489,340
Recorded Investment in Loans [Member] | Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment in Loans, Individually Evaluated for Impairment	192	605
Recorded Investment in Loans, Collectively Evaluated for Impairment	101,569	77,230
Total Loans	101,761	77,835
Recorded Investment in Loans [Member] | Consumer Installment Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment in Loans, Individually Evaluated for Impairment	57	92
Recorded Investment in Loans, Collectively Evaluated for Impairment	5,566	6,837
Total Loans	5,623	6,929
Recorded Investment in Loans [Member] | All Other Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment in Loans, Collectively Evaluated for Impairment	1,435	1,526
Total Loans	1,435	1,526
Recorded Investment in Loans [Member] | Residential 1-4 Family [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment in Loans, Individually Evaluated for Impairment	6,708	10,340
Recorded Investment in Loans, Collectively Evaluated for Impairment	135,266	125,080
Total Loans	141,974	135,420
Recorded Investment in Loans [Member] | Commercial [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment in Loans, Individually Evaluated for Impairment	8,016	15,636
Recorded Investment in Loans, Collectively Evaluated for Impairment	231,373	230,885
Total Loans	239,389	246,521
Recorded Investment in Loans [Member] | Construction and Land Development [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment in Loans, Individually Evaluated for Impairment	8,619	14,173
Recorded Investment in Loans, Collectively Evaluated for Impairment	46,126	46,954
Total Loans	54,745	61,127
Recorded Investment in Loans [Member] | Second Mortgages [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment in Loans, Individually Evaluated for Impairment	254	234
Recorded Investment in Loans, Collectively Evaluated for Impairment	6,115	6,996
Total Loans	6,369	7,230
Recorded Investment in Loans [Member] | Multifamily [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment in Loans, Collectively Evaluated for Impairment	35,774	28,683
Total Loans	35,774	28,683
Recorded Investment in Loans [Member] | Agriculture [Member] | Mortgage Loans on Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment in Loans, Individually Evaluated for Impairment	205	250
Recorded Investment in Loans, Collectively Evaluated for Impairment	9,062	10,109
Total Loans	$ 9,267	$ 10,359

XML

Securities (Tables)

12 Months Ended

Dec. 31, 2013

Investments Debt And Equity Securities [Abstract]

Amortized Costs and Fair Values of Securities Available for Sale and Held to Maturity

The amortized cost and fair value of securities available for sale and held to maturity as of December 31, 2013 and 2012 were as follows (dollars in thousands):

	December 31, 2013
	Gross Unrealized
	Amortized Cost		Gains		Losses			Fair Value
Securities Available for Sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	99,789	$	165	$	(967	)	$	98,987
U.S. Gov’t sponsored agencies		487		—		(1	)		486
State, county and municipal		138,884		1,297		(6,085	)		134,096
Corporate and other bonds		6,369		27		(47	)		6,349
Mortgage backed – U.S. Gov’t agencies		3,608		29		(198	)		3,439
Mortgage backed – U.S. Gov’t sponsored agencies		22,631		69		(280	)		22,420
Total Securities Available for Sale	$	271,768	$	1,587	$	(7,578	)	$	265,777
Securities Held to Maturity
State, county and municipal	$	9,385	$	718	$	—		$	10,103
Mortgage backed – U.S. Gov’t agencies		6,604		398		—			7,002
Mortgage backed – U.S. Gov’t sponsored agencies		12,574		626		—			13,200
Total Securities Held to Maturity	$	28,563	$	1,742	$	—		$	30,305

	December 31, 2012
	Gross Unrealized
	Amortized Cost		Gains		Losses			Fair Value
Securities Available for Sale
U.S. Treasury issue and other U.S. Gov’t agencies	$	153,480	$	362	$	(565	)	$	153,277
U.S. Gov’t sponsored agencies		500		3		—			503
State, county and municipal		112,110		5,757		(271	)		117,596
Corporate and other bonds		7,530		96		(8	)		7,618
Mortgage backed – U.S. Gov’t agencies		15,192		378		(10	)		15,560
Mortgage backed – U.S. Gov’t sponsored agencies		14,349		258		(83	)		14,524
Total Securities Available for Sale	$	303,161	$	6,854	$	(937	)	$	309,078
Securities Held to Maturity
State, county and municipal	$	11,825	$	1,142	$	—		$	12,967
Mortgage backed – U.S. Gov’t agencies		9,112		615		—			9,727
Mortgage backed – U.S. Gov’t sponsored agencies		21,346		1,188		—			22,534
Total Securities Held to Maturity	$	42,283	$	2,945	$	—		$	45,228

Amortized Cost and Fair Value of Securities by Contractual Maturity

The amortized cost and fair value of securities at December 31, 2013 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 (dollars in thousands).

	Held to Maturity				Available for Sale
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	2,447	$	2,497	$	6,367	$	6,305
Due after one year through five years		24,677		26,198		42,963		42,709
Due after five years through ten years		1,439		1,610		141,675		138,206
Due after ten years		—		—		80,763		78,557
Total securities	$	28,563	$	30,305	$	271,768	$	265,777

Summary of Realized Gains and Losses on Sales of Securities

Gross realized gains and losses on sales of securities available for sale during the years ended December 31, 2013, 2012 and 2011 were as follows (dollars in thousands):

	2013			2012			2011
Gross realized gains	$	645		$	2,236		$	2,953
Gross realized losses		(127	)		(744	)		(85	)
Net securities gains	$	518		$	1,492		$	2,868

Summary of Fair Value and Gross Unrealized Losses for Securities Available for Sale

The fair value and gross unrealized losses for securities available for sale, segregated by the length of time that individual securities have been in a continuous gross unrealized loss position, at December 31, 2013 and 2012 were as follows (dollars in thousands):

	December 31, 2013
	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	$	35,873	$	(531	)	$	37,638	$	(436	)	$	73,511	$	(967	)
U.S. Gov’t sponsored agencies		486		(1	)		—		—			486		(1	)
State, county and municipal		92,010		(5,343	)		6,445		(742	)		98,455		(6,085	)
Corporate and other bonds		3,332		(42	)		991		(5	)		4,323		(47	)
Mortgage backed – U.S. Gov’t agencies		2,767		(198	)		—		—			2,767		(198	)
Mortgage backed – U.S. Gov’t sponsored agencies		14,572		(258	)		1,557		(22	)		16,129		(280	)
Total	$	149,040	$	(6,373	)	$	46,631	$	(1,205	)	$	195,671	$	(7,578	)

	December 31, 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	$	70,561	$	(565	)	$	—	$	—	$	70,561	$	(565	)
U.S. Gov’t sponsored agencies		—		—			—		—		—		—
State, county and municipal		17,404		(271	)		—		—		17,404		(271	)
Corporate and other bonds		1,485		(8	)		—		—		1,485		(8	)
Mortgage backed – U.S. Gov’t agencies		1,688		(10	)		—		—		1,688		(10	)
Mortgage backed – U.S. Gov’t sponsored agencies		4,779		(83	)		—		—		4,779		(83	)
Total	$	95,917	$	(937	)	$	—	$	—	$	95,917	$	(937	)

XML

Stock Option Plans

12 Months Ended

Dec. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Option Plans

Note 13. Stock Option Plans

2009 Stock Option Plan

In 2009, the Company adopted the Community Bankers Trust Corporation 2009 Stock Incentive Plan (the “Plan”). The purpose of the Plan is to further the long-term stability and financial success of the Company by attracting and retaining employees and directors through the use of stock incentives and other rights that promote and recognize the financial success and growth of the Company. The Company believes that ownership of company stock will stimulate the efforts of such employees and directors by further aligning their interests with the interest of the Company’s stockholders. The Plan is to be used to grant restricted stock awards, stock options in the form of incentive stock options and nonstatutory stock options, stock appreciation rights and other stock-based awards to employees and directors of the Company for up to 2,650,000 shares of common stock. No more than 1,500,000 shares may be issued in connection with the exercise of incentive stock options. Annual grants of stock options are limited to 500,000 shares for each participant.

The exercise price of an incentive stock option cannot be less than 100% of the fair market value of such shares on the date of grant, provided that if the participant owns, directly or indirectly, stock possessing more than 10% of the total combined voting power of all classes of stock of the Company, the exercise price of an incentive stock option shall not be less than 110% of the fair market value of such shares on the date of grant. The exercise price of nonstatutory stock option awards cannot be less than 100% of the fair market value of such shares on the date of grant. The option exercise price may be paid in cash or with shares of common stock, or a combination of cash and common stock, if permitted under the participant’s option agreement. The Plan will expire on June 17, 2019, unless terminated sooner by the Board of Directors.

The fair value of each option granted is estimated on the date of grant using the “Black Scholes Option Pricing” method with the following assumptions for the years ended December 31, 2013, 2012 and 2011:

	2013			2012	2011
Expected volatility		50.0	%	50.0%		50.0	%
Expected dividend		2.0	%	2.0% - 3.0%		3.0	%
Expected term (years)		6.25		6.25		5.50
Risk free rate		1.38	%	0.77% - 1.31%		1.12	%

The expected volatility is an estimate of the volatility of the Company’s share price based on historical performance. The risk free interest rates for periods within the contractual life of the awards are based on the U. S. Treasury Zero Coupon implied yield at the time of the grant correlating to the expected term. The expected term is based on the simplified method as provided by the Securities and Exchange Commission Staff Accounting Bulletin No 110 (SAB 110). In accordance with SAB 110, the Company has chosen to use the simplified method, as this is the first plan issued by the Company as Community Bankers Trust Corporation; therefore, no historical exercise data exists. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts over the life of the options at the time of the grant.

The Company plans to issue new shares of common stock when options are exercised.

In January 2013, the Company granted 25,000 restricted shares of common stock to a senior executive in accordance with the minimum rules for long-term equity grants for companies participating in the Department of the Treasury’s TARP Capital Purchase Program. These rules require that for each 25% of total financial assistance repaid, 25% of the total restricted stock may become transferrable. See Note 27 for further information related to the Company’s participation in the TARP Capital Purchase Program.

The Company issued equity grants to non-employee directors as payment for annual retainer fees. The fair market value of these grants was the closing price of the Company’s stock at the grant date. A summary of these grants for the years ended December 31, 2013, 2012 and 2011 is shown in the following table:

	For the Year Ended
	2013				2012				2011
Month	Shares Issued		Fair Market Value		Shares Issued		Fair Market Value		Shares Issued		Fair Market Value
February		—	$	—		—	$	—		39,972	$	1.23
March		8,751		3.37		—		—		4,082		1.33
June		9,096		3.24		15,925		2.04		115,040		1.13
September		8,073		3.65		13,477		2.41		—		—
December		7,965		3.70		13,260		2.45		—		—

In October 2011, the Company granted 50,000 employee options which vested 100% on December 31, 2011. The Company granted 270,000 options in 2012 and 230,000 options in 2013 to employees which vest ratably over the requisite service period of four years. A summary of options outstanding for the year ended December 31, 2013, is shown in the following table:

	Options
	Number of Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding at beginning of year		412,000		$	1.74
Granted		230,000			2.86
Forfeited		(31,750	)		2.65
Expired		—			—
Exercised		(5,000	)		1.25
Outstanding at end of year		605,250			2.12	$	992,618
Options outstanding and exercisable at end of year		195,313			1.95	$	352,849
Weighted average remaining contractual life for outstanding and exercisable shares at year end		87 months

The weighted average fair value per option of options granted during the year was $1.16, $0.46 and $0.36 for the years ended December 31, 2013, 2012 and 2011, respectively. The aggregate intrinsic value of a stock option in the table above represents the aggregate pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by option holders had all option holders exercised their options on December 31, 2013. This amount changes with changes in the market value of the Company’s stock. The Company received $6,000 in cash related to option exercises with a total intrinsic value of $11,000 for the period ended December 31, 2013. There were no options exercised for either of the periods ended December 31, 2012 and 2011.

The Company recorded total stock-based compensation expense of $253,000, $156,000 and $227,000 for the years ended December 31, 2013, 2012 and 2011, respectively. Of the $253,000 in expense that was recorded in 2013, $135,000 related to employee grants and is classified as “personnel expense” on the Consolidated Statements of Income; $118,000 related to the non-employee director grants and is classified as “other operating expenses.” Of the $156,000 in expense that was recorded in 2012, $57,000 related to employee grants and is classified as “personnel expense” on the Consolidated Statements of Income; $99,000 related to the non-employee director grants and is classified as “other operating expenses.” Of the $227,000 in expense that was recorded in 2011, $44,000 related to employee grants and is classified as “personnel expense” on the Consolidated Statements of Income; $183,000 related to the non-employee director grants and is classified as “other operating expenses.”

The following table summarizes non-vested options and restricted stock outstanding at December 31, 2013:

	Options					Restricted Stock
	Number of Shares			Weighted Average Grant-Date Fair Value		Number of Shares			Weighted Average Grant-Date Fair Value
Non-vested at beginning of the year		299,000		$	0.47		7,500		$	2.78
Granted		230,000			1.16		—			—
Vested		(87,313	)		0.48		(3,750	)		2.78
Forfeited		(31,750	)		0.91		—			—
Non-vested at end of year		409,937			0.82		3,750			2.78

The unrecognized compensation expense related to non-vested options and restricted stock was $290,000 at December 31, 2013 to be recognized over a weighted average period of 33 months. The total fair market value of shares vested during the years ended December 31, 2013, 2012 and 2011 was $42,000, $51,000 and $35,000, respectively.

TFC and BOE Stock Option Plans

Prior to the mergers, both TFC and BOE maintained stock option plans as incentives for certain officers and directors. During 2007, TFC replaced its stock option plan with an equity compensation plan that issued restricted stock awards. Under the terms of these plans, all options and awards were fully vested and exercisable, and any unrecognized compensation expenses were accelerated. Due to the mergers on May 31, 2008, these plans were terminated and the Company issued replacement options amounting to 332,351 and 161,426 to former employees of TFC and BOE, which represented exchange rates of 1.42 and 5.7278, respectively.

The options were valued at $1.488 million using the Black-Scholes model at the time of acquisition of TFC and BOE by the Company. The options were considered part of the acquisition price and, therefore, were not expensed by the Company. Assumptions were for a discount rate of 4.06% and 25% volatility with a remaining term of 4.83 years for TFC options and 5.25 years for BOE options.

A summary of the options outstanding for the year ended December 31, 2013 is shown in the following table:

	Options
	Number of Shares			Weighted Average Exercise Price
Outstanding at beginning of the year		91,078		$	5.36
Granted		—			—
Forfeited		(1,896	)		5.01
Expired		(49,048	)		5.72
Exercised		—			—
Outstanding at end of year		40,134			4.94
Options outstanding and exercisable at end of the year		40,134			4.94
Weighted average remaining contractual life for outstanding and exercisable shares at year end		10 months

The aggregate intrinsic value of the options outstanding and exercisable was zero for each of the years ended December 31, 2013, 2012 and 2011.

XML

Employee Benefit Plans - Schedule of Defined Benefit Plans Change in Benefit Obligation (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Change in Benefit Obligation
Benefit obligation, beginning of year	$ 5,791	$ 5,622
Service cost
Interest cost	224	250	260
Actuarial gain/(loss)	(749)	425
Benefits paid	(649)	(488)
Change in obligation due to plan amendment	68
Settlement (gain)/loss	(23)	(18)
Benefit obligation, ending	$ 4,662	$ 5,791	$ 5,622