Earnings reports for Aug. 11

Richmond-area firm: Star Scientific

Star Scientific Inc.'s loss widened in the second quarter, despite higher sales, as the company's legal expenses rose.

The Petersburg-based company also reported yesterday that it is in "active discussions with another tobacco company" to expand the distribution and marketing of its smokeless tobacco products.

Star Scientific reported a loss of $7.02 million, or 7 cents per share, for the second quarter, compared with a loss of $6.38 million, or 7 cents per share, in the same period in 2008.

The company attributed the wider loss mostly to higher expenses, primarily a $2.7 million increase in legal costs resulting from the company's patent-infringement lawsuit against cigarette maker R.J. Reynolds Tobacco Co.

Star said its revenue rose in the second quarter to $238,205, from $52,176 in the same period of 2008.

Revenue improved partly because sales of its smokeless tobacco products rebounded in the second quarter after retailers cut inventories earlier this year because of a federal tobacco tax that went into effect in April.

Star Scientific shares rose 10 cents, or 10.3 percent, to $1.07 on the Nasdaq stock market. -- John Reid Blackwell

Community bank: Community Bankers Trust

Community Bankers Trust Corp. reported on Saturday a second-quarter loss of $24.1 million, or $1.14 cents per share, compared with net income of $288,000, or 2 cents per share, in the same period a year ago.

The loss was primarily the result of a noncash good-will impairment charge of $24 million and a special assessment of $583,000 by the Federal Deposit Insurance Corp.

The results also reflect $265,000 of dividends and costs related to the Troubled Asset Relief Program, a government investment program.

Excluding the impairment charge, the assessment and the TARP money, the bank would have had net operating income of $56,000, or no cents per share, for the second quarter.

Henrico County-based Community Bankers is the holding company for Essex Bank, which has 25 branch offices: 14 in Virginia, seven in Maryland and four in Georgia.

Community Bankers closed yesterday at $3.30, unchanged from Friday. -- Carol Hazard