BLUEFIELD, Va., Oct. 21, 2010 (GLOBE NEWSWIRE) -- First Community Bancshares, Inc. (Nasdaq:FCBC) (www.fcbinc.com) (the "Company") today reported net income for the quarter ended September 30, 2010, of $6.55 million, or $0.37 per diluted common share.
Commenting on third quarter results, Chief Executive Officer John M. Mendez stated, "Our recent results further confirm our earnings capacity and strength. Third quarter GAAP earnings of $6.55 million reflect increases of $1.42 million and $19.12 million over the second quarter of this year and the comparable quarter in 2009, respectively. Annualized return on average assets for the recently completed quarter reached 1.14%, the highest level in over two years. These results were achieved despite the lingering effects of the recession and the continued pressures of the real estate and construction market sectors."
Mendez summarized, saying, "We continue to operate with very high levels of liquidity, which tend to constrain net interest margin; however, we are committed to preserving the strength of our balance sheet through the remainder of the business cycle. First Community's combination of strength in earnings and capital, coupled with its excellent asset quality measures, set the stage for what we believe to be excellent prospects for the future and continued ability to capitalize on a range of opportunities."
Third Quarter 2010 Highlights –
- The ratio of non-performing assets to total assets was 131 basis points.
- Tax-equivalent net interest margin for the third quarter was 3.87%, up 19 basis points from the comparable quarter of 2009.
- Net interest income increased $1.06 million, or 6.05%, from the third quarter of 2009.
- Tangible book value per common share increased to $10.26, up $1.19 from December 31, 2009.
- The Company remains "well-capitalized" with a total risk-based capital ratio of 14.2%, Tier 1 risk-based capital ratio of 12.9%, and a Tier 1 leverage ratio of 8.8% at September 30, 2010.
Net Interest Income
Tax-equivalent net interest margin for the third quarter of 2010 was 3.87% compared to 3.68% from the comparable quarter of 2009. Net interest income was $18.60 million for the third quarter of 2010, an increase of $1.06 million, or 6.05%, from the third quarter of 2009. Interest income was $25.84 million for the third quarter of 2010, a decrease of $1.29 million, or 4.75%, from the third quarter of 2009. The yield on loans decreased to 6.07% for the third quarter of 2010 from 6.14% in the same period of the prior year, while average loans increased $42.14 million between the comparable periods to $1.40 billion. The Company continued to maintain a high level of liquidity with average cash and cash equivalent balances of $82.52 million in the third quarter of 2010.
Third quarter 2010 interest expense was $7.24 million, a decrease of $2.35 million, or 24.50%, from the third quarter of 2009. Third quarter 2010 deposit costs decreased $2.13 million compared to the third quarter of 2009, which was primarily due to a decrease in the average rate paid on interest-bearing deposits of 58 basis points to 1.35% for the third quarter of 2010 compared to the same period in the prior year. Compared to the third quarter of 2009, interest costs on borrowings decreased $225 thousand to $2.37 million for the third quarter of 2010, while the average balance decreased $4.80 million for the comparable periods due to the redemption of various wholesale borrowings and decreasing rates of interest paid. The cost of interest-bearing liabilities decreased 51 basis points during the third quarter of 2010 compared to the third quarter of 2009. Average interest-bearing liabilities decreased $8.79 million, or 0.49% for the third quarter of 2010 compared with the third quarter of 2009, which included a decrease of $3.95 million in Federal Home Loan Bank ("FHLB") borrowings and other long-term debt.
Noninterest Income
During the third quarter of 2010, wealth management revenues decreased $62 thousand, or 6.39%, to $909 thousand from the third quarter of 2009. The Wealth Management Division reported $836 million in assets under management at September 30, 2010. Service charges on deposit accounts were $3.46 million for the third quarter of 2010, a decrease of $202 thousand, or 5.52%, from the third quarter of 2009. Insurance commissions were $1.66 million for the third quarter of 2010, an increase of $96 thousand, or 6.13%, from the comparable quarter of 2009. During the third quarter of 2010, GreenPoint Insurance Group, Inc., the Company's wholly-owned insurance subsidiary, acquired Murphy Insurance Agency, based in Princeton, West Virginia.
Noninterest Expenses
Noninterest expenses for the third quarter of 2010 decreased $339 thousand, or 1.91%, compared to the third quarter of 2009. The decrease was primarily due to merger-related expenses incurred in the third quarter of 2009 resulting from the TriStone merger. These reductions were offset by salary and employee benefit increases of $893 thousand, or 11.36%, reflecting the increase in the number of branches, general increases in other operational areas, and increasing health care costs. Federal Deposit Insurance Corporation ("FDIC") deposit insurance premiums decreased $595 thousand, or 45.32% in the third quarter of 2010, compared to the third quarter of 2009, due to a prior year's change in the way FDIC assessments are calculated and collected. The efficiency ratio for the third quarter of 2010 was 58.92% compared to 59.40% for the third quarter of 2009.
Credit Quality
The Company's loan quality measures at September 30, 2010 continue to compare favorably to the industry. Total loan delinquencies of 30 days or more, including non-accrual loans, as a percent of total loans were 1.76% at September 30, 2010, 1.70% at June 30, 2010, and 2.35% at March 31, 2010. That compares favorably to the most recent reporting by the Company's Federal Reserve peer group of bank holding companies with total assets between $1 and $3 billion, which reported total loan delinquencies of 4.65%. The ratio of allowance for loan losses as a percent of loans held for investment was 1.89% at September 30, 2010, compared to 1.79% at June 30, 2010, and 1.76% at March 31, 2010.
Total non-performing assets, which include other real estate owned, were 1.31% of total assets at September 30, 2010, and non-performing loans as a percentage of loans held for investment were 1.76%. The Federal Reserve peer group last reported total non-performing assets to total assets of 3.42% and non-performing loans to total loans of 3.67%. Included in non-performing assets are $7.90 million of unseasoned troubled debt restructurings at September 30, 2010. The Company was more active this quarter in restructuring loan terms for creditworthy customers. Approximately $578 thousand of the third quarter provision for loan losses was related to lowering the interest rate for borrowers under restructured terms.
Balance Sheet
Consolidated assets totaled $2.30 billion at September 30, 2010. Total stockholders' equity was $274.20 million, resulting in a book value per common share outstanding of $15.37 at September 30, 2010, compared to total stockholders' equity of $252.27 million and a book value per common share of $14.20 at December 31, 2009. During the third quarter of 2010, the Company paid a $0.10 per share dividend on common shares. 2010 marks the Company's 25th consecutive year of dividends to shareholders.
The Company will host an investor and media teleconference and webcast on Friday, October 22, 2010, at 11:00 a.m. To access the teleconference, the toll-free number is (877) 407-8033. Alternatively, individuals may listen to the live or archived webcast of the conference call. To listen to the webcast, visit www.fcbinc.com and follow the link under the Investor Relations section. The Company's press release and financial summary will be available in this section, as well. Copies of the Company's third quarter 2010 earnings press release and financial summary will also be made available upon request via fax, email or postal service mail. To request a copy, contact David D. Brown, Chief Financial Officer, at (276) 326-9000.
Non-GAAP Presentations
The Company prepares its financial statements under accounting principles generally accepted in the United States, or "GAAP". However, this press release also refers to certain non-GAAP financial measures that we believe, when considered together with GAAP financial measures, provide investors with important information regarding our operational performance. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP.
Core earnings is a non-GAAP financial measure that reflects net income excluding non-recurring income and expense items, taxes, loan loss provisions, losses on other real estate owned, as well as gains, losses, and impairment losses on securities from net income. These excluded items are difficult to predict and we believe that core earnings provide the Company and investors with a valuable tool to evaluate the Company's financial results.
The adjusted efficiency ratio is a non-GAAP financial measure that is computed by dividing core non-interest expense by the sum of net interest income on a tax equivalent basis and core non-interest income. We believe that this measure provides investors with important information about our operating efficiency. Comparison of our adjusted efficiency ratio with those of other companies may not be possible because other companies may calculate the adjusted efficiency ratio differently.
About First Community Bancshares, Inc.
First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a $2.30 billion financial holding company and is the parent company of First Community Bank, N. A. First Community Bank, N. A. operates through fifty-six locations in the five states of Virginia, West Virginia, North Carolina, South Carolina, and Tennessee. First Community Bank, N. A. offers wealth management services through its Trust & Financial Services Division and Investment Planning Consultants, Inc., a registered investment advisory firm which offers wealth management and investment advice. The Company's Wealth Management Division managed assets with a market value of $836 million at September 30, 2010. The Company is also the parent company of GreenPoint Insurance Group, Inc., a full-service insurance agency headquartered in High Point, North Carolina, that operates ten offices. The Company's common stock is traded on the NASDAQ Global Select Market under the symbol, "FCBC". Additional investor information can be found on the Internet at www.fcbinc.com.
The First Community Bancshares, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6960
This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company's Securities and Exchange Commission reports, including but not limited to the Annual Report on Form 10-K for the most recent year ended. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements contained within this news release.
| First Community Bancshares, Inc. | ||||
| Condensed Consolidated Statements of Income | ||||
| (Unaudited) | Three Months Ended | Nine Months Ended | ||
| (In Thousands, Except Share and Per Share Data) | September 30, | September 30, | ||
| 2010 | 2009 | 2010 | 2009 | |
| Interest Income | ||||
| Interest and fees on loans held for investment | $ 21,440 | $ 21,064 | $ 63,791 | $ 60,619 |
| Interest on securities -- taxable | 2,895 | 4,562 | 10,411 | 14,903 |
| Interest on securities -- nontaxable | 1,451 | 1,449 | 4,271 | 4,527 |
| Interest on federal funds sold and deposits | 54 | 55 | 134 | 133 |
| Total interest income | 25,840 | 27,130 | 78,607 | 80,182 |
| Interest Expense | ||||
| Interest on deposits | 4,872 | 6,998 | 15,480 | 21,641 |
| Interest on borrowings | 2,371 | 2,596 | 7,369 | 8,251 |
| Total interest expense | 7,243 | 9,594 | 22,849 | 29,892 |
| Net interest income | 18,597 | 17,536 | 55,758 | 50,290 |
| Provision for loan losses | 3,810 | 3,819 | 11,071 | 8,519 |
| Net interest income after provision for loan losses | 14,787 | 13,717 | 44,687 | 41,771 |
| Noninterest Income | ||||
| Wealth management income | 909 | 971 | 2,806 | 3,088 |
| Service charges on deposit accounts | 3,457 | 3,659 | 9,796 | 10,307 |
| Other service charges and fees | 1,244 | 1,156 | 3,775 | 3,467 |
| Insurance commissions | 1,663 | 1,567 | 5,253 | 5,523 |
| Net impairment losses recognized in earnings | -- | (30,811) | (185) | (34,796) |
| Security gains | 2,574 | 866 | 4,025 | 2,930 |
| Acquisition gain | -- | 4,493 | -- | 4,493 |
| Other operating income | 1,091 | 815 | 2,950 | 1,648 |
| Total noninterest income (loss) | 10,938 | (17,284) | 28,420 | (3,340) |
| Noninterest Expense | ||||
| Salaries and employee benefits | 8,753 | 7,860 | 25,209 | 23,131 |
| Occupancy expense of bank premises | 1,573 | 1,266 | 4,852 | 4,202 |
| Furniture and equipment expense | 926 | 928 | 2,748 | 2,758 |
| Amortization of intangible assets | 260 | 262 | 769 | 751 |
| FHLB debt prepayment fees | -- | -- | -- | 88 |
| FDIC premiums and assessments | 718 | 1,313 | 2,129 | 2,788 |
| Merger-related expenses | -- | 1,505 | -- | 1,580 |
| Other operating expense | 5,199 | 4,634 | 14,392 | 13,705 |
| Total noninterest expense | 17,429 | 17,768 | 50,099 | 49,003 |
| Income (loss) before income taxes | 8,296 | (21,335) | 23,008 | (10,572) |
| Income tax expense (benefit) | 1,743 | (9,783) | 6,046 | (6,617) |
| Net income (loss) | 6,553 | (11,552) | 16,962 | (3,955) |
| Dividends on preferred stock | -- | 1,011 | -- | 2,160 |
| Net income (loss) available to common shareholders | $ 6,553 | $ (12,563) | $ 16,962 | $ (6,115) |
| Per Share | ||||
| Basic earnings (loss) per common share | $ 0.37 | $ (0.72) | $ 0.95 | $ (0.44) |
| Diluted earnings (loss) per common share | $ 0.37 | $ (0.72) | $ 0.95 | $ (0.44) |
| Weighted average shares outstanding: | ||||
| Basic | 17,808,348 | 17,427,434 | 17,787,233 | 13,918,599 |
| Diluted | 17,832,882 | 17,427,434 | 17,812,895 | 13,918,599 |
| For the period: | ||||
| Return on average assets | 1.14% | -2.20% | 1.00% | -0.37% |
| Return on average common equity | 9.49% | -19.25% | 8.49% | -3.46% |
| Cash dividends per common share | $ 0.10 | $ 0.10 | $ 0.30 | $ 0.30 |
| First Community Bancshares, Inc. | |||||
| Condensed Quarterly Statements of Income (Loss) | |||||
| (Unaudited) | As of and for the Quarter Ended | ||||
| (In Thousands, Except Share and Per Share Data) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
| 2010 | 2010 | 2010 | 2009 | 2009 | |
| Interest Income | |||||
| Interest and fees on loans held for investment | $ 21,440 | $ 20,997 | $ 21,354 | $ 22,085 | $ 21,064 |
| Interest on securities -- taxable | 2,895 | 3,730 | 3,786 | 4,190 | 4,562 |
| Interest on securities -- nontaxable | 1,451 | 1,394 | 1,426 | 1,445 | 1,449 |
| Interest on federal funds sold and deposits | 54 | 34 | 46 | 32 | 55 |
| Total interest income | 25,840 | 26,155 | 26,612 | 27,752 | 27,130 |
| Interest Expense | |||||
| Interest on deposits | 4,872 | 5,106 | 5,502 | 6,155 | 6,998 |
| Interest on borrowings | 2,371 | 2,507 | 2,491 | 2,635 | 2,596 |
| Total interest expense | 7,243 | 7,613 | 7,993 | 8,790 | 9,594 |
| Net interest income | 18,597 | 18,542 | 18,619 | 18,962 | 17,536 |
| Provision for loan losses | 3,810 | 3,596 | 3,665 | 7,282 | 3,819 |
| Net interest income after provision | |||||
| for loan losses | 14,787 | 14,946 | 14,954 | 11,680 | 13,717 |
| Noninterest Income | |||||
| Wealth management income | 909 | 1,012 | 885 | 1,059 | 971 |
| Service charges on deposit accounts | 3,457 | 3,347 | 2,992 | 3,585 | 3,659 |
| Other service charges and fees | 1,244 | 1,250 | 1,281 | 1,248 | 1,156 |
| Insurance commissions | 1,663 | 1,389 | 2,201 | 1,465 | 1,567 |
| Net impairment losses recognized in earnings | -- | (185) | -- | (44,067) | (30,811) |
| Securities gains (losses) | 2,574 | 1,201 | 250 | (14,603) | 866 |
| Acquisition gain | -- | -- | -- | -- | 4,493 |
| Other operating income | 1,091 | 890 | 969 | 983 | 815 |
| Total noninterest income (loss) | 10,938 | 8,904 | 8,578 | (50,330) | (17,284) |
| Noninterest Expense | |||||
| Salaries and employee benefits | 8,753 | 8,487 | 7,969 | 8,254 | 7,860 |
| Occupancy expense of bank premises | 1,573 | 1,570 | 1,709 | 1,687 | 1,266 |
| Furniture and equipment expense | 926 | 918 | 904 | 988 | 928 |
| Amortization of intangible assets | 260 | 253 | 256 | 277 | 262 |
| FDIC premiums and assessments | 718 | 710 | 701 | 1,474 | 1,313 |
| Merger-related expenses | -- | -- | -- | 146 | 1,505 |
| Other operating expense | 5,199 | 4,660 | 4,533 | 4,802 | 4,634 |
| Total noninterest expense | 17,429 | 16,598 | 16,072 | 17,628 | 17,768 |
| Income (loss) before income taxes | 8,296 | 7,252 | 7,460 | (56,278) | (21,335) |
| Income tax expense (benefit) | 1,743 | 2,121 | 2,182 | (21,537) | (9,783) |
| Net income (loss) | 6,553 | 5,131 | 5,278 | (34,741) | (11,552) |
| Dividends on preferred stock | -- | -- | -- | -- | 1,011 |
| Net income (loss) available to | |||||
| common shareholders | $ 6,553 | $ 5,131 | $ 5,278 | $ (34,741) | $ (12,563) |
| Per Share | |||||
| Basic earnings (loss) per common share | $ 0.37 | $ 0.29 | $ 0.30 | $ (1.96) | $ (0.72) |
| Diluted earnings (loss) per common share | $ 0.37 | $ 0.29 | $ 0.30 | $ (1.96) | $ (0.72) |
| Cash dividends per common share | $ 0.10 | $ 0.10 | $ 0.10 | $ -- | $ 0.10 |
| Weighted average shares outstanding: | |||||
| Basic | 17,808,348 | 17,787,325 | 17,765,556 | 17,687,413 | 17,427,434 |
| Diluted | 17,832,882 | 17,805,393 | 17,784,449 | 17,687,413 | 17,427,434 |
| First Community Bancshares, Inc. | ||||
| Reconciliation of GAAP Net Income to Core Earnings | ||||
| Three Months Ended | Nine Months Ended | |||
| (Unaudited) | September 30, | September 30, | ||
| (In Thousands, Except Per Share Data) | 2010 | 2009 | 2010 | 2009 |
| Net income (loss), GAAP | $ 6,553 | $ (11,552) | $ 16,962 | $ (3,955) |
| Non-GAAP adjustments: | ||||
| Security gains | (2,574) | (866) | (4,025) | (2,930) |
| Acquisition gain | -- | (4,493) | -- | (4,493) |
| Merger-related expenses | -- | 1,505 | -- | 1,580 |
| FHLB debt prepayment fees | -- | -- | -- | 88 |
| Other-than-temporary security impairments | -- | 30,811 | 185 | 34,796 |
| FDIC special assessments | -- | -- | -- | 988 |
| Other non-core items | 1,061 | 525 | 2,734 | 1,558 |
| Total adjustments to core earnings | (1,513) | 27,482 | (1,106) | 31,587 |
| Tax effect | (567) | 10,188 | (415) | 11,717 |
| Core earnings, non-GAAP | $ 5,607 | $ 5,742 | $ 16,271 | $ 15,915 |
| Core return on average assets | 0.98% | 1.00% | 0.96% | 0.96% |
| Core return on average equity | 8.12% | 8.80% | 8.15% | 8.99% |
| Core diluted earnings per share | $0.31 | $0.33 | $0.91 | $1.14 |
| Efficiency Ratio Calculation | ||||
| Three Months Ended | Nine Months Ended | |||
| (Unaudited) | September 30, | September 30, | ||
| (In Thousands) | 2010 | 2009 | 2010 | 2009 |
| Noninterest expense, GAAP | $ 17,429 | $ 17,768 | $ 50,099 | $ 49,003 |
| Non-GAAP adjustments: | ||||
| Merger-related expenses | -- | (1,505) | -- | (1,580) |
| FHLB debt prepayment fees | -- | -- | -- | (88) |
| Other non-core items | (1,061) | (524) | (2,734) | (2,546) |
| Adjusted noninterest expense | 16,368 | 15,739 | 47,365 | 44,789 |
| Net interest income, GAAP | 18,597 | 17,536 | 55,758 | 50,290 |
| Noninterest income (loss), GAAP | 10,938 | (17,284) | 28,420 | (3,340) |
| Non-GAAP adjustments: | ||||
| Tax-equivalency adjustment | 819 | 793 | 2,422 | 2,482 |
| Security gains | (2,574) | (866) | (4,025) | (2,930) |
| Other-than-temporary security impairments | -- | 30,811 | 185 | 34,796 |
| Acquisition gain | -- | (4,493) | -- | (4,493) |
| Adjusted net interest and noninterest income | 27,780 | 26,497 | 82,760 | 76,805 |
| Efficiency Ratio | 58.92% | 59.40% | 57.23% | 58.32% |
| First Community Bancshares, Inc. | |||||
| Quarterly Balance Sheets | |||||
| For the Quarter Ended | |||||
| (Unaudited) | September 30, | June 30, | March 31, | December 31, | September 30, |
| (Dollars In Thousands) | 2010 | 2010 | 2010 | 2009 | 2009 |
| Cash and due from banks | $ 130,401 | $ 50,922 | $ 74,962 | $ 97,641 | $ 51,905 |
| Interest-bearing deposits with banks | 1,363 | 25,609 | 12,744 | 3,700 | 3,352 |
| Securities available-for-sale | 480,587 | 502,866 | 524,297 | 486,057 | 575,800 |
| Securities held-to-maturity | 5,931 | 6,468 | 7,155 | 7,454 | 7,452 |
| Loans held for sale | 3,386 | 2,141 | 1,494 | 11,576 | 4,376 |
| Loans held for investment, net of unearned income | 1,398,251 | 1,399,885 | 1,390,874 | 1,393,931 | 1,396,617 |
| Less allowance for loan losses | 26,420 | 25,011 | 24,508 | 24,277 | 19,710 |
| Net loans | 1,375,217 | 1,377,015 | 1,367,860 | 1,381,230 | 1,381,283 |
| Premises and equipment | 56,042 | 56,407 | 56,772 | 56,946 | 57,695 |
| Other real estate owned | 5,501 | 7,108 | 4,740 | 4,578 | 3,955 |
| Interest receivable | 7,899 | 7,859 | 8,630 | 8,610 | 9,046 |
| Intangible assets | 91,165 | 90,757 | 90,805 | 91,061 | 90,134 |
| Other assets | 143,319 | 121,835 | 130,974 | 136,006 | 116,303 |
| Total Assets | $ 2,297,425 | $ 2,246,846 | $ 2,278,939 | $ 2,273,283 | $ 2,296,925 |
| Deposits: | |||||
| Demand | $ 216,167 | $ 205,731 | $ 205,810 | $ 208,244 | $ 198,107 |
| Interest-bearing demand | 270,927 | 244,889 | 246,513 | 231,907 | 216,184 |
| Savings | 425,661 | 404,820 | 427,883 | 381,381 | 351,450 |
| Time | 744,468 | 757,979 | 775,405 | 824,428 | 896,716 |
| Total Deposits | 1,657,223 | 1,613,419 | 1,655,611 | 1,645,960 | 1,662,457 |
| Interest, taxes and other liabilities | 21,377 | 21,865 | 21,912 | 22,498 | 24,374 |
| Securities sold under agreements to repurchase | 153,413 | 147,772 | 144,381 | 153,634 | 147,042 |
| FHLB and other indebtedness | 191,209 | 195,865 | 195,873 | 198,924 | 198,932 |
| Total Liabilities | 2,023,222 | 1,978,921 | 2,017,777 | 2,021,016 | 2,032,805 |
| Common stock | 18,083 | 18,083 | 18,083 | 18,083 | 18,083 |
| Additional paid-in capital | 189,811 | 190,259 | 190,650 | 190,967 | 192,799 |
| Retained earnings | 78,385 | 73,613 | 70,262 | 66,760 | 101,504 |
| Treasury stock, at cost | (7,729) | (8,583) | (9,342) | (9,891) | (12,768) |
| Accumulated other comprehensive loss | (4,347) | (5,447) | (8,491) | (13,652) | (35,498) |
| Total Stockholders' Equity | 274,203 | 267,925 | 261,162 | 252,267 | 264,120 |
| Total Liabilities and | |||||
| Stockholders' Equity | $ 2,297,425 | $ 2,246,846 | $ 2,278,939 | $ 2,273,283 | $ 2,296,925 |
| Actual shares outstanding at period end | 17,834,601 | 17,807,155 | 17,782,791 | 17,765,164 | 17,680,328 |
| Book value per common share at period end | $ 15.37 | $ 15.05 | $ 14.69 | $ 14.20 | $ 14.94 |
| Tangible book value per common share | |||||
| at period end (1) | $ 10.26 | $ 9.95 | $ 9.58 | $ 9.07 | $ 9.84 |
| (1) Tangible book value per common share is defined as stockholders' equity less goodwill and other intangibles divided by common shares outstanding. | |||||
| First Community Bancshares, Inc. | |||||
| Selected Credit Quality Information | |||||
| (Unaudited) | As of and for the Quarter Ended | ||||
| (Dollars in Thousands) | September 30, | June 30, | March 31, | December 31, | September 30, |
| 2010 | 2010 | 2010 | 2009 | 2009 | |
| Summary of Loan Loss Experience | |||||
| Allowance for loan losses: | |||||
| Beginning balance | $ 25,011 | $ 24,508 | $ 24,277 | $ 19,710 | $ 18,543 |
| Provision for loan losses | 3,810 | 3,596 | 3,665 | 7,282 | 3,819 |
| Charge-offs | (2,651) | (3,373) | (3,732) | (2,954) | (2,990) |
| Recoveries | 250 | 280 | 298 | 239 | 338 |
| Net charge-offs | (2,401) | (3,093) | (3,434) | (2,715) | (2,652) |
| Ending balance | $ 26,420 | $ 25,011 | $ 24,508 | $ 24,277 | $ 19,710 |
| Summary of Asset Quality | |||||
| Non-accrual loans | $ 16,645 | $ 17,668 | $ 17,477 | $ 17,527 | $ 12,278 |
| Troubled debt restructurings | 7,904 | 1,206 | 1,041 | 1,390 | 2,319 |
| Loans 90 days or more past due and still accruing | -- | -- | -- | -- | -- |
| Total non-performing loans | 24,549 | 18,874 | 18,518 | 18,917 | 14,597 |
| Other real estate owned | 5,501 | 7,108 | 4,740 | 4,578 | 3,955 |
| Total non-performing assets | $ 30,050 | $ 25,982 | $ 23,258 | $ 23,495 | $ 18,552 |
| Restructured loans performing in accordance | |||||
| with terms | $ 849 | $ 1,557 | $ 2,050 | $ 2,062 | $ 570 |
| Asset Quality Ratios | |||||
| Non-performing loans as a percentage | |||||
| of loans held for investment | 1.76% | 1.35% | 1.33% | 1.36% | 1.05% |
| Non-performing assets as a percentage | |||||
| of total assets | 1.31% | 1.16% | 1.02% | 1.03% | 0.81% |
| Annualized net charge-offs as a percentage of | |||||
| average loans held for investment | 0.68% | 0.89% | 1.00% | 0.77% | 0.77% |
| Allowance for loan losses as a percentage of loans | |||||
| held for investment | 1.89% | 1.79% | 1.76% | 1.74% | 1.41% |
| Ratio of allowance for loan losses to | |||||
| non-performing loans | 1.08 | 1.33 | 1.32 | 1.28 | 1.35 |
| First Community Bancshares, Inc. | |||
| Non-accrual Loan Detail | |||
| As of September 30, 2010 | |||
| (Unaudited) | Non-accrual | ||
| (Dollars in Thousands) | Loans | Non-accrual | Loans to Loans |
| Outstanding | Loans | Outstanding | |
| Commercial | |||
| Commercial & industrial | $ 110,573 | $ 524 | 0.47% |
| Agriculture | 1,391 | -- | 0.00% |
| Total commercial | 111,964 | 524 | 0.47% |
| Commercial real estate | |||
| Construction, land development & vacant land | 115,029 | 1,821 | 1.58% |
| Non-owner occupied | 204,184 | 2,223 | 1.09% |
| Owner occupied | 150,368 | 3,033 | 2.02% |
| Farmland | 37,997 | -- | 0.00% |
| Total commercial real estate | 507,578 | 7,077 | 1.39% |
| Consumer | 63,186 | 100 | 0.16% |
| Residential real estate | |||
| Residential | 533,976 | 5,544 | 1.04% |
| Multi-family | 67,638 | 1,978 | 2.92% |
| Home equity lines | 113,909 | 1,422 | 1.25% |
| Total residential | 715,523 | 8,944 | 1.25% |
| Total loans | $ 1,398,251 | $ 16,645 | 1.19% |
| First Community Bancshares, Inc. | |||||
| Selected Financial Information | |||||
| (Unaudited) | As of and for the Quarter Ended | ||||
| (Dollars in Thousands) | September 30, | June 30, | March 31, | December 31, | September 30, |
| 2010 | 2010 | 2010 | 2009 | 2009 | |
| Ratios | |||||
| Return on average assets | 1.14% | 0.91% | 0.95% | -6.02% | -2.20% |
| Return on average common equity | 9.49% | 7.73% | 8.32% | -51.69% | -19.25% |
| Net interest margin | 3.87% | 3.92% | 4.02% | 3.92% | 3.68% |
| Efficiency ratio for the quarter (non-GAAP) | 58.92% | 58.26% | 54.53% | 61.29% | 59.40% |
| Efficiency ratio year-to-date (non-GAAP) | 57.23% | 56.38% | 54.53% | 59.10% | 58.32% |
| Equity as a percent of total assets at end of period | 11.94% | 11.92% | 11.46% | 11.10% | 11.50% |
| Average earning assets as a percentage of | |||||
| average total assets | 87.67% | 87.53% | 87.38% | 87.46% | 87.19% |
| Average loans as a percentage of average deposits | 85.59% | 85.19% | 85.08% | 85.13% | 83.25% |
| Average Balances | |||||
| Investments | $ 503,686 | $ 505,808 | $ 488,255 | $ 549,386 | $ 544,060 |
| Loans | 1,404,746 | 1,397,528 | 1,395,669 | 1,406,497 | 1,362,603 |
| Earning assets | 1,990,953 | 1,976,118 | 1,960,511 | 2,001,576 | 1,978,626 |
| Total assets | 2,270,984 | 2,257,591 | 2,243,786 | 2,288,530 | 2,269,427 |
| Deposits | 1,641,339 | 1,640,432 | 1,640,424 | 1,652,082 | 1,636,744 |
| Interest bearing deposits | 1,433,770 | 1,433,039 | 1,441,359 | 1,452,369 | 1,437,763 |
| Borrowings | 342,497 | 340,001 | 340,720 | 346,990 | 347,292 |
| Interest bearing liabilities | 1,776,267 | 1,773,041 | 1,782,079 | 1,799,359 | 1,785,055 |
| Equity | 274,001 | 266,218 | 257,419 | 266,658 | 258,961 |
| Tax equivalent net interest income | 19,416 | 19,333 | 19,432 | 19,778 | 18,329 |
| First Community Bancshares, Inc. | ||||||
| Consolidated Average Balance Sheets, Yields, and Rates | ||||||
| Three Months Ended September 30, | ||||||
| 2010 | 2009 | |||||
| (Unaudited) | Yield/ | Yield/ | ||||
| (Dollars in Thousands) | Average | Interest | Rate | Average | Interest | Rate |
| Balance | (1) | (1) | Balance | (1) | (1) | |
| Earning assets | ||||||
| Loans held for investment (2) | $ 1,404,746 | $ 21,478 | 6.07% | $ 1,362,603 | $ 21,078 | 6.14% |
| Securities available-for-sale | 497,602 | 4,999 | 3.99% | 536,485 | 6,636 | 4.91% |
| Securities held-to-maturity | 6,084 | 128 | 8.35% | 7,575 | 154 | 8.07% |
| Interest-bearing deposits with banks | 82,521 | 54 | 0.26% | 71,963 | 55 | 0.30% |
| Total earning assets | 1,990,953 | 26,659 | 5.31% | 1,978,626 | 27,923 | 5.60% |
| Other assets | 280,031 | 290,801 | ||||
| Total | $ 2,270,984 | $ 2,269,427 | ||||
| Interest-bearing liabilities | ||||||
| Interest-bearing demand deposits | $ 257,560 | $ 274 | 0.42% | $ 209,569 | $ 110 | 0.21% |
| Savings deposits | 423,827 | 672 | 0.63% | 339,601 | 639 | 0.75% |
| Time deposits | 752,383 | 3,926 | 2.07% | 888,593 | 6,249 | 2.79% |
| Retail repurchase agreements | 100,217 | 245 | 0.97% | 101,065 | 333 | 1.31% |
| Wholesale repurchase agreements | 50,000 | 471 | 3.74% | 50,000 | 474 | 3.76% |
| FHLB borrowings & other long-term debt | 192,280 | 1,655 | 3.41% | 196,227 | 1,789 | 3.62% |
| Total interest-bearing liabilities | 1,776,267 | 7,243 | 1.62% | 1,785,055 | 9,594 | 2.13% |
| Noninterest-bearing demand deposits | 207,569 | 198,981 | ||||
| Other liabilities | 13,147 | 26,430 | ||||
| Stockholders' equity | 274,001 | 258,961 | ||||
| Total | $ 2,270,984 | $ 2,269,427 | ||||
| Net interest income, tax-equivalent | $ 19,416 | $ 18,329 | ||||
| Net interest rate spread (3) | 3.69% | 3.47% | ||||
| Net interest margin (4) | 3.87% | 3.68% | ||||
| (1) Fully taxable equivalent at the rate of 35%. | ||||||
| (2) Non-accrual loans are included in average balances outstanding but with no related interest income during the period of non-accrual. | ||||||
| (3) Represents the difference between the yield on earning assets and cost of funds. | ||||||
| (4) Represents tax-equivalent net interest income divided by average earning assets. | ||||||
| First Community Bancshares, Inc. | ||||||
| Consolidated Average Balance Sheets, Yields, and Rates | ||||||
| Nine Months Ended September 30, | ||||||
| 2010 | 2009 | |||||
| (Unaudited) | Yield/ | Yield/ | ||||
| (Dollars in Thousands) | Average | Interest | Rate | Average | Interest | Rate |
| Balance | (1) | (1) | Balance | (1) | (1) | |
| Earning assets | ||||||
| Loans held for investment (2) | $ 1,399,347 | $ 63,913 | 6.11% | $ 1,308,380 | $ 60,663 | 6.20% |
| Securities available-for-sale | 492,603 | 16,561 | 4.49% | 535,710 | 21,378 | 5.34% |
| Securities held-to-maturity | 6,713 | 421 | 8.38% | 7,954 | 490 | 8.24% |
| Interest-bearing deposits with banks | 77,319 | 134 | 0.23% | 67,819 | 133 | 0.26% |
| Total earning assets | 1,975,982 | 81,029 | 5.48% | 1,919,863 | 82,664 | 5.76% |
| Other assets | 282,628 | 289,013 | ||||
| Total | $ 2,258,610 | $ 2,208,876 | ||||
| Interest-bearing liabilities | ||||||
| Interest-bearing demand deposits | $ 247,596 | $ 724 | 0.39% | $ 199,235 | $ 270 | 0.18% |
| Savings deposits | 419,550 | 2,284 | 0.73% | 323,387 | 1,836 | 0.76% |
| Time deposits | 768,882 | 12,472 | 2.17% | 864,503 | 19,535 | 3.02% |
| Retail repurchase agreements | 95,494 | 773 | 1.08% | 103,000 | 1,057 | 1.37% |
| Wholesale repurchase agreements | 50,000 | 1,402 | 3.75% | 50,000 | 1,449 | 3.87% |
| FHLB borrowings & other long-term debt | 195,586 | 5,194 | 3.55% | 206,643 | 5,745 | 3.72% |
| Total interest-bearing liabilities | 1,777,108 | 22,849 | 1.72% | 1,746,768 | 29,892 | 2.29% |
| Noninterest-bearing demand deposits | 204,706 | 199,986 | ||||
| Other liabilities | 9,799 | 25,517 | ||||
| Stockholders' equity | 266,997 | 236,605 | ||||
| Total | $ 2,258,610 | $ 2,208,876 | ||||
| Net interest income, tax-equivalent | $ 58,180 | $ 52,772 | ||||
| Net interest rate spread (3) | 3.76% | 3.47% | ||||
| Net interest margin (4) | 3.94% | 3.68% | ||||
| (1) Fully taxable equivalent at the rate of 35%. | ||||||
| (2) Non-accrual loans are included in average balances outstanding but with no related interest income during the period of non-accrual. | ||||||
| (3) Represents the difference between the yield on earning assets and cost of funds. | ||||||
| (4) Represents tax-equivalent net interest income divided by average earning assets. | ||||||