BLUEFIELD, Va., Jan. 27, 2010 (GLOBE NEWSWIRE) -- First Community Bancshares, Inc. (Nasdaq:FCBC) (http://www.fcbinc.com) today reported operating results for the quarter and year ended December 31, 2009. The results were significantly impacted by the Company's decision to sell and write down certain pooled trust preferred securities affected by continuing weakness in a number of underlying bank issuers.
During fourth quarter 2009, the Company sold four positions from its portfolio of pooled trust preferred securities and realized after-tax losses on the final disposition of $26.78 million to secure tax benefits associated with the sales. All remaining positions in this sector were written down to nominal fair market values to reflect the Company's view of the current valuation and prospects for these securities. The cumulative effect of these transactions was a net loss available to common shareholders for the quarter ended December 31, 2009, of $34.56 million, or $1.95 per diluted common share. Net loss available to common shareholders amounted to $40.39 million, or $2.72 per diluted common share for the twelve months ended December 31, 2009.
Core earnings for the fourth quarter of 2009 were $2.27 million, or $0.13 per diluted common share, and $16.71 million, or $1.12 per diluted common share for the twelve months ended December 31, 2009 (see the attached reconciliation of GAAP to core earnings).
The combination of security sales and write-downs have substantially eliminated further exposure to these bonds and positions the Company to move forward without the prospect of further impairment charges related to pooled trust preferred securities. Commenting on these initiatives, Chief Executive Officer John M. Mendez said, "We can now move beyond the substantial distraction associated with these securities and devote our full attention to the business of banking. We are now positioned with a strong capital base and stronger overall asset quality measures. Following the balance sheet restructuring the Company continues to report capital levels in excess of the regulatory definitions of well capitalized." The sales and write-downs of all pooled trust preferred securities beyond the amounts already included in other comprehensive income resulted in a reduction in tangible book value of approximately $0.76.
Fourth Quarter 2009 Highlights –
- Asset quality metrics continue to compare favorably to peers with a ratio of non-performing assets to total assets at December 31, 2009, of 97 basis points
- Net interest margin increased to 3.92%, up 24 basis points from the quarter ended September 30, 2009
- First Community Bank, N. A. remains "well-capitalized" with a total risk-based capital ratio of 11.9%, Tier 1 risk-based capital ratio of 10.6%, and a Tier 1 leverage ratio of 7.2% at December 31, 2009
Net Interest Income
Tax-equivalent net interest margin for the fourth quarter of 2009 was 3.92%. Net interest income was $18.96 million, an increase of $2.44 million, or 14.73%, from the fourth quarter of 2008. Interest income was $27.75 million, an increase of $517 thousand, or 1.90%, from fourth quarter of 2008. The yield on loans dropped to 6.24% from 6.39% while average loans increased $171.47 million to $1.41 billion from fourth quarter 2008, which also reflects the acquisition of TriStone Community Bank in July 2009. The Company continues to maintain a high level of liquidity with an average federal funds sold position of $32.62 million in the fourth quarter.
Fourth quarter interest expense was $8.79 million, a decrease of $1.92 million, or 17.91%, from the fourth quarter of 2008. Fourth quarter deposit costs decreased $1.09 million compared to the fourth quarter of 2008, while the average rate paid on interest-bearing deposits decreased 66 basis points to 1.68%. Compared to the fourth quarter of 2008, interest costs on borrowings decreased $824 thousand to $2.64 million, while the average balance decreased $53.40 million due to the redemption and restructuring of various wholesale borrowings. The cost of interest-bearing liabilities decreased 67 basis points during the fourth quarter of 2009 compared to the fourth quarter of 2008. Average interest bearing liabilities increased $168.42 million, or 10.33%, compared with the fourth quarter of 2008, and included a decrease of $22.96 million in Federal Home Loan Bank ("FHLB") borrowings.
Non-interest Income
Insurance commissions were $1.47 million for the fourth quarter of 2009, an increase of $207 thousand, or 16.45%, from the same period in 2008. During the fourth quarter of 2009, wealth management revenues decreased $87 thousand, or 7.59%, to $1.06 million, and at December 31, 2009 the Wealth Management Division reported $825 million in assets under management. Service charges on deposit accounts were $3.59 million for the fourth quarter of 2009, a decrease of $112 thousand, or 3.03%, from the fourth quarter of 2008.
Investment Securities Impairment Charges
The Company maintains a portfolio of investment securities that include pooled trust preferred securities. These securities generally represent obligations of banks and, to a lesser extent, insurance companies and real estate investment trusts. During the fourth quarter of 2009, the Company recognized pre-tax credit related net impairment losses on its pooled trust preferred securities of $43.70 million, or $1.54 per common share on an after-tax basis. The impairment charges reflect the Company's change in its intent to hold the securities to recovery. The Company's remaining exposure to these investment securities is reduced to only $1.65 million at December 31, 2009. The Company also recognized additional impairment of $369 thousand on four equity security positions at December 31, 2009.
Non-interest Expenses
Non-interest expenses for the fourth quarter of 2009 increased $2.54 million, or 16.87%, from the fourth quarter of 2008. The large increase was due to increased Federal Deposit Insurance Corporation ("FDIC") deposit insurance premiums, salaries and employee benefits, and furniture and equipment expense. Salaries and employee benefits increased $1.86 million, or 26.00%, from the fourth quarter of 2008. Coddle Creek Financial branches accounted for an increase in salaries and employee benefits of $78 thousand, TriStone Community Bank branches accounted for an increase of $390 thousand, and GreenPoint Insurance Group's acquisitions accounted for an increase of $234 thousand. The remainder of the Company showed an overall increase in salaries and benefits of $1.15 million. Fourth quarter 2008 expenses were significantly reduced by the reversal of all incentive compensation accruals. Other operating expenses decreased $1.29 million, or 24.09%, compared to the fourth quarter of 2008. The fourth quarter of 2009 efficiency ratio was 61.29% compared to 57.97% in the fourth quarter of 2008.
Credit Quality
The Company's loan quality measures at December 31, 2009, continue to compare favorably to the Company's Federal Reserve peer group of bank holding companies with total assets between $1 and $3 billion. Total loan delinquencies of 30 days or more, including non-accrual loans, as a percent of total loans were 2.32% at December 31, 2009, compared to 4.65% for the Federal Reserve peer group at September 30, 2009, and the ratio of allowance for loan losses as a percent of loans held for investment was 1.56%. The increase in non-accrual loans from September 30, 2009, was due largely to increases in the residential real estate portfolio. Substantially all of the increase in non-accrual single-family real estate loans was due to loans in the Richmond, Virginia, and Winston-Salem, North Carolina, markets. The increase in multi-family non-accrual loans is attributed to one loan relationship in the southern West Virginia market.
Non-performing assets increased to $22.11 million at December 31, 2009, or 0.97% of total assets and non-performing loans as a percentage of loans held for investment was 1.26% at December 31, 2009. The Federal Reserve peer group reported non-performing assets to total assets of 3.23% and non-performing loans to total loans held for investment of 3.52% at September 30, 2009.
Balance Sheet
Since December 31, 2008, consolidated assets have increased $141.56 million to $2.27 billion at December 31, 2009, due to the acquisition of TriStone Community Bank, an increasing deposit base, and $61.67 million in new capital from the June 2009 equity offering. Total stockholders' equity for the Company was $253.86 million, resulting in a book value per common share outstanding of $14.29 at December 31, 2009, compared to $220.34 million and $15.46 per common share at December 31, 2008.
The Company will host an investor and media teleconference and webcast on Thursday, January 28, 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 Current News Releases section. The Company's press release and financial summary will be available in this section, as well. Copies of the Company's fourth quarter 2009 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 (800) 425-0839.
First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a $2.27 billion financial holding company and is the parent company of First Community Bank, N. A. First Community Bank, N. A. operates through fifty-nine 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 $825 million at December 31, 2009. First Community is also the parent company of GreenPoint Insurance Group, Inc., a full-service insurance agency located in High Point, North Carolina. First Community Bancshares, Inc.'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/(Loss) | ||||
| (Unaudited) | Three Months Ended | Year Ended | ||
| (In Thousands, Except Share and Per Share Data) | December 31, | December 31, | ||
| 2009 | 2008 | 2009 | 2008 | |
| Interest Income | ||||
| Interest and fees on loans held for investment | $22,085 | $19,830 | $82,704 | $80,224 |
| Interest on securities-taxable | 4,190 | 5,613 | 19,093 | 22,714 |
| Interest on securities-nontaxable | 1,445 | 1,746 | 5,972 | 7,521 |
| Interest on federal funds sold and deposits | 32 | 46 | 165 | 306 |
| Total interest income | 27,752 | 27,235 | 107,934 | 110,765 |
| Interest Expense | ||||
| Interest on deposits | 6,155 | 7,249 | 27,796 | 29,792 |
| Interest on borrowings | 2,635 | 3,459 | 10,886 | 15,138 |
| Total interest expense | 8,790 | 10,708 | 38,682 | 44,930 |
| Net interest income | 18,962 | 16,527 | 69,252 | 65,835 |
| Provision for loan losses | 6,996 | 2,701 | 15,053 | 7,422 |
| Net interest income after provision for loan losses | 11,966 | 13,826 | 54,199 | 58,413 |
| Non-Interest Income | ||||
| Wealth management income | 1,059 | 1,146 | 4,147 | 4,100 |
| Service charges on deposit accounts | 3,585 | 3,697 | 13,892 | 14,067 |
| Other service charges and fees | 1,248 | 1,023 | 4,715 | 4,248 |
| Insurance commissions | 1,465 | 1,258 | 6,988 | 4,988 |
| Net impairment losses recognized in earnings | (44,067) | (29,872) | (78,863) | (29,923) |
| Security (losses) gains | (14,603) | (234) | (11,673) | 1,899 |
| Acquisition gain | -- | -- | 4,493 | -- |
| Other operating income | 983 | 659 | 2,733 | 2,995 |
| Total non-interest income | (50,330) | (22,323) | (53,568) | 2,374 |
| Non-Interest Expense | ||||
| Salaries and employee benefits | 8,990 | 7,135 | 32,121 | 29,876 |
| Occupancy expense of bank premises | 1,687 | 1,385 | 5,889 | 5,102 |
| Furniture and equipment expense | 988 | 942 | 3,746 | 3,740 |
| Amortization of intangible assets | 277 | 205 | 1,028 | 689 |
| FHLB debt prepayment fees | -- | -- | 88 | 1,647 |
| FDIC premiums and assessments | 1,474 | 61 | 4,262 | 202 |
| Merger-related expenses | 146 | -- | 1,726 | -- |
| Other operating expense | 4,066 | 5,356 | 17,873 | 19,260 |
| Total non-interest expense | 17,628 | 15,084 | 66,733 | 60,516 |
| (Loss) income before income taxes | (55,992) | (23,581) | (66,102) | 271 |
| Income tax (benefit) expense | (21,430) | (9,561) | (27,874) | (2,810) |
| Net (loss) income | (34,562) | (14,020) | (38,228) | 3,081 |
| Dividends on preferred stock | -- | 255 | 2,160 | 255 |
| Net (loss) income available to common shareholders | $(34,562) | $(14,275) | $(40,388) | $2,826 |
| Per Share | ||||
| Basic earnings per common share (EPS) | $(1.95) | $(1.25) | $(2.72) | $0.26 |
| Diluted earnings per common share (DEPS) | $(1.95) | $(1.25) | $(2.72) | $0.25 |
| Weighted average shares outstanding: | ||||
| Basic | 17,687,413 | 11,252,183 | 14,868,547 | 11,058,076 |
| Diluted | 17,687,413 | 11,252,183 | 14,868,547 | 11,134,025 |
| For the period: | ||||
| Return on average assets | -5.99% | -2.77% | -1.81% | 0.14% |
| Return on average common equity | -51.15% | -33.28% | -16.46% | 1.43% |
| Cash dividends per common share | $-- | $0.28 | $0.30 | $1.12 |
| First Community Bancshares, Inc. | |||||
| Condensed Quarterly Income/(Loss) Statements | |||||
| As of and for the Quarter Ended | |||||
| (Unaudited) | December 31, | September 30, | June 30, | March 31, | December 31, |
| (In Thousands, Except Share and Per Share Data) | 2009 | 2009 | 2009 | 2009 | 2008 |
| Interest Income | |||||
| Interest and fees on loans held for investment | $22,085 | $21,064 | $19,571 | $19,984 | $19,830 |
| Interest on securities-taxable | 4,190 | 4,562 | 5,177 | 5,164 | 5,613 |
| Interest on securities-nontaxable | 1,445 | 1,449 | 1,402 | 1,676 | 1,746 |
| Interest on federal funds sold and deposits | 32 | 55 | 39 | 39 | 46 |
| Total interest income | 27,752 | 27,130 | 26,189 | 26,863 | 27,235 |
| Interest Expense | |||||
| Interest on deposits | 6,155 | 6,998 | 7,076 | 7,567 | 7,249 |
| Interest on borrowings | 2,635 | 2,596 | 2,792 | 2,863 | 3,459 |
| Total interest expense | 8,790 | 9,594 | 9,868 | 10,430 | 10,708 |
| Net interest income | 18,962 | 17,536 | 16,321 | 16,433 | 16,527 |
| Provision for loan losses | 6,996 | 3,418 | 2,552 | 2,087 | 2,701 |
| Net interest income after provision for loan losses | 11,966 | 14,118 | 13,769 | 14,346 | 13,826 |
| Non-Interest Income | |||||
| Wealth management income | 1,059 | 971 | 1,133 | 984 | 1,146 |
| Service charges on deposit accounts | 3,585 | 3,659 | 3,491 | 3,157 | 3,697 |
| Other service charges and fees | 1,248 | 1,156 | 1,133 | 1,178 | 1,023 |
| Insurance commissions | 1,465 | 1,567 | 1,639 | 2,317 | 1,258 |
| Net impairment losses recognized in earnings | (44,067) | (30,811) | (3,776) | (209) | (29,872) |
| Securities (losses) gains | (14,603) | 866 | 1,653 | 411 | (234) |
| Acquisition gain | -- | 4,493 | -- | -- | -- |
| Other operating income | 983 | 815 | 349 | 586 | 659 |
| Total non-interest income | (50,330) | (17,284) | 5,622 | 8,424 | (22,323) |
| Non-Interest Expense | |||||
| Salaries and employee benefits | 8,990 | 7,860 | 7,405 | 7,866 | 7,135 |
| Occupancy expense of bank premises | 1,687 | 1,266 | 1,333 | 1,603 | 1,385 |
| Furniture and equipment expense | 988 | 928 | 892 | 938 | 942 |
| Amortization of intangible assets | 277 | 262 | 244 | 245 | 205 |
| FHLB debt prepayment fees | -- | -- | 88 | -- | -- |
| FDIC premiums and assessments | 1,474 | 1,313 | 1,287 | 188 | 61 |
| Merger-related expenses | 146 | 1,505 | 74 | 1 | -- |
| Other operating expense | 4,066 | 4,634 | 4,820 | 4,353 | 5,356 |
| Total non-interest expense | 17,628 | 17,768 | 16,143 | 15,194 | 15,084 |
| (Loss) income before income taxes | (55,992) | (20,934) | 3,248 | 7,576 | (23,581) |
| Income tax (benefit) expense | (21,430) | (9,633) | 843 | 2,346 | (9,561) |
| Net (loss) income | (34,562) | (11,301) | 2,405 | 5,230 | (14,020) |
| Preferred dividends | -- | 1,011 | 578 | 571 | 255 |
| Net (loss) income available to common shareholders | $(34,562) | $(12,312) | $1,827 | $4,659 | $(14,275) |
| Per Share | |||||
| Basic EPS | $(1.95) | $(0.71) | $0.14 | $0.40 | $(1.27) |
| Diluted EPS | $(1.95) | $(0.71) | $0.14 | $0.40 | $(1.27) |
| Cash dividends per common share | $-- | $0.10 | $0.20 | $-- | $0.28 |
| Weighted average shares outstanding: | |||||
| Basic | 17,687,413 | 17,427,434 | 12,696,202 | 11,567,769 | 11,252,183 |
| Diluted | 17,687,413 | 17,427,434 | 12,741,080 | 11,616,568 | 11,252,183 |
| First Community Bancshares, Inc. | ||||||||
| Reconciliation of GAAP Net Income/(Loss) to Core Earnings | ||||||||
| (Unaudited) | Three Months Ended | Year Ended | ||||||
| (In Thousands, Except Per Share Data) | December 31, | December 31, | ||||||
| 2009 | 2008 | 2009 | 2008 | |||||
| Net (loss) income, GAAP | $(34,562) | $(14,020) | $(38,228) | $3,081 | ||||
| Non-GAAP adjustments: | ||||||||
| Security (gains)/losses | 14,603 | 234 | 11,673 | (1,899) | ||||
| Acquisition gain | -- | -- | (4,493) | -- | ||||
| Merger expenses | 146 | -- | 1,726 | -- | ||||
| FHLB debt prepayment fees | -- | -- | 88 | 1,647 | ||||
| Other-than-temporary security impairments | 44,067 | 29,872 | 78,863 | 29,923 | ||||
| FDIC special assessments | -- | -- | 988 | -- | ||||
| Other non-core, non-recurring items | 118 | 385 | 1,676 | 1,071 | ||||
| Total adjustments to core earnings | 58,934 | 30,491 | 90,521 | 30,742 | ||||
| Tax effect | 22,100 | 11,891 | 35,581 | 11,989 | ||||
| Core earnings, non-GAAP | $2,272 | $4,580 | $16,712 | $21,834 | ||||
| Core return on average assets | 0.39% | 0.89% | 0.75% | 1.07% | ||||
| Core return on average equity | 3.36% | 9.63% | 6.81% | 10.82% | ||||
| Core diluted earnings per share | $0.13 | $0.40 | $1.12 | $1.96 | ||||
| Efficiency Ratio Calculation | ||||||||
| (Unaudited) | Three Months Ended | Year Ended | ||||||
| (In Thousands) | December 31, | December 31, | ||||||
| 2009 | 2008 | 2009 | 2008 | |||||
| Noninterest expenses, GAAP | $17,628 | $15,084 | $66,733 | $60,516 | ||||
| Non-GAAP adjustments: | ||||||||
| Merger expenses | (146) | -- | (1,726) | -- | ||||
| FHLB debt prepayment fees | -- | -- | (88) | (1,647) | ||||
| Other non-core, non-recurring items | (458) | (436) | (3,004) | (1,122) | ||||
| Adjusted noninterest expenses | 17,024 | 14,648 | 61,915 | 57,747 | ||||
| Net interest income, GAAP | 18,962 | 16,527 | 69,252 | 65,835 | ||||
| Noninterest income, GAAP | (50,330) | (22,323) | (53,568) | 2,374 | ||||
| Non-GAAP adjustments: | ||||||||
| Tax-equivalency adjustment | 816 | 959 | 3,297 | 4,133 | ||||
| Security (gains)/losses | 14,603 | 234 | 11,673 | (1,899) | ||||
| Other-than-temporary security impairments | 44,067 | 29,872 | 78,863 | 29,923 | ||||
| Other non-core, non-recurring items | (340) | (340) | ||||||
| Acquisition gain | -- | -- | (4,493) | -- | ||||
| Adjusted net interest and noninterest income | 27,778 | 25,269 | 104,684 | 100,366 | ||||
| Efficiency Ratio | 61.29% | 57.97% | 59.14% | 57.54% | ||||
| First Community Bancshares, Inc. | |||||
| Quarterly Balance Sheets | |||||
| For the Quarter Ended | |||||
| (Unaudited) | December 31, | September 30, | June 30, | March 31, | December 31, |
| (Dollars In Thousands) | 2009 | 2009 | 2009 | 2009 | 2008 |
| Cash and due from banks | $97,641 | $51,905 | $116,095 | $100,881 | $39,310 |
| Interest-bearing deposits with banks | 3,700 | 3,352 | 28,354 | 79 | 7,129 |
| Securities available for sale | 486,057 | 575,800 | 521,879 | 549,664 | 520,723 |
| Securities held to maturity | 7,454 | 7,452 | 7,725 | 8,471 | 8,670 |
| Loans held for sale | 11,576 | 4,376 | 802 | 1,445 | 1,024 |
| Loans held for investment, net of unearned income | 1,393,931 | 1,396,617 | 1,269,443 | 1,276,790 | 1,298,159 |
| Less allowance for loan losses | 21,725 | 17,444 | 16,678 | 16,555 | 15,978 |
| Net loans | 1,383,782 | 1,383,549 | 1,253,568 | 1,261,680 | 1,283,205 |
| Premises and equipment | 56,946 | 57,695 | 55,193 | 54,893 | 55,024 |
| Other real estate owned | 4,578 | 3,955 | 3,615 | 3,114 | 1,326 |
| Interest receivable | 8,610 | 9,046 | 8,934 | 8,848 | 10,084 |
| Intangible assets | 91,061 | 90,134 | 89,534 | 89,338 | 89,612 |
| Other assets | 135,049 | 115,453 | 118,313 | 122,173 | 118,231 |
| Total Assets | $2,274,878 | $2,298,341 | $2,203,210 | $2,199,141 | $2,133,314 |
| Deposits: | |||||
| Demand | $208,244 | $198,107 | $202,543 | $207,947 | $199,712 |
| Interest-bearing demand | 231,907 | 216,184 | 195,905 | 194,934 | 185,117 |
| Savings | 381,381 | 351,450 | 311,435 | 319,007 | 309,577 |
| Time | 824,428 | 896,716 | 837,475 | 861,556 | 809,352 |
| Total Deposits | 1,645,960 | 1,662,457 | 1,547,358 | 1,583,444 | 1,503,758 |
| Interest, taxes and other liabilities | 22,498 | 24,374 | 27,630 | 28,293 | 27,423 |
| Federal funds purchased | -- | -- | -- | -- | -- |
| Securities sold under agreements to repurchase | 153,634 | 147,042 | 153,804 | 153,824 | 165,914 |
| FHLB and other indebtedness | 198,924 | 198,932 | 190,863 | 215,870 | 215,877 |
| Total Liabilities | 2,021,016 | 2,032,805 | 1,919,655 | 1,981,431 | 1,912,972 |
| Preferred stock, net of discount | -- | -- | 40,525 | 40,471 | 40,419 |
| Common stock | 18,083 | 18,083 | 17,341 | 12,051 | 12,051 |
| Additional paid-in capital | 190,967 | 192,799 | 183,955 | 127,992 | 128,526 |
| Retained earnings | 68,355 | 102,920 | 116,997 | 118,021 | 107,231 |
| Treasury stock, at cost | (9,891) | (12,768) | (13,712) | (14,453) | (15,368) |
| Accumulated other comprehensive loss | (13,652) | (35,498) | (61,551) | (66,372) | (52,517) |
| Total Stockholders' Equity | 253,862 | 265,536 | 283,555 | 217,710 | 220,342 |
| Total Liabilities and Stockholders' Equity | $2,274,878 | $2,298,341 | $2,203,210 | $2,199,141 | $2,133,314 |
| Actual shares outstanding at period end | 17,765,164 | 17,680,328 | 16,909,592 | 11,596,249 | 11,567,449 |
| Book value per common share at period end | $14.29 | $15.02 | $14.31 | $15.20 | $15.46 |
|
Tangible book value per common share at period end (1) |
$9.16 | $9.92 | $9.02 | $7.49 | $7.71 |
| (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 Financial Information | |||||||
| As of and for the Quarter Ended | |||||||
| (Unaudited) | December 31, | September 30, | June 30, | March 31, | December 31, | ||
| (Dollars in Thousands) | 2009 | 2009 | 2009 | 2009 | 2008 | ||
| Summary of Loan Loss Experience | |||||||
| Allowance for loan losses: | |||||||
| Beginning balance | $17,444 | $16,678 | $16,555 | $15,978 | $14,510 | ||
| Balance acquired | -- | -- | -- | -- | 1,169 | ||
| Provision for loan losses | 6,996 | 3,418 | 2,552 | 2,087 | 2,701 | ||
| Charge-offs | (2,957) | (2,990) | (2,681) | (1,730) | (2,606) | ||
| Recoveries | 242 | 338 | 252 | 220 | 204 | ||
| Net charge-offs | (2,715) | (2,652) | (2,429) | (1,510) | (2,402) | ||
| Ending balance | $21,725 | $17,444 | $16,678 | $16,555 | $15,978 | ||
| Summary of Asset Quality | |||||||
| Nonaccrual loans | $17,527 | $12,278 | $11,645 | $10,628 | $12,763 | ||
| Loans 90 days or more past due and still accruing | -- | -- | -- | -- | -- | ||
| Total non-performing loans | 17,527 | 12,278 | 11,645 | 10,628 | 12,763 | ||
| Other real estate owned | 4,578 | 3,955 | 3,615 | 3,114 | 1,326 | ||
| Total non-performing assets | $22,105 | $16,233 | $15,260 | $13,742 | $14,089 | ||
| Asset Quality Ratios | |||||||
| Non-performing loans as a percentage of loans held for investment | 1.26% | 0.88% | 0.92% | 0.83% | 0.98% | ||
| Non-performing assets as a percentage of total assets | 0.97% | 0.71% | 0.69% | 0.62% | 0.66% | ||
| Annualized net charge-offs as a percentage of average loans held for investment | 0.77% | 0.77% | 0.77% | 0.47% | 0.77% | ||
| Allowance for loan losses as a percentage of loans held for investment | 1.56% | 1.25% | 1.31% | 1.30% | 1.23% | ||
| Ratio of allowance for loan losses to non-performing loans | 1.24 | 1.42 | 1.43 | 1.56 | 1.25 | ||
| First Community Bancshares, Inc. | |||||
| Nonaccrual Loan Detail | |||||
| (Unaudited) | As of December 31, 2009 | ||||
| Nonaccrual | |||||
| Loans to | |||||
| Loans | Nonaccrual | Loans | |||
| (Dollars in Thousands) | Outstanding | Loans | Outstanding | ||
| Commercial | |||||
| Commercial & industrial | $99,716 | $1,821 | 1.83% | ||
| Agriculture | 1,251 | 188 | 15.03% | ||
| Total commercial | 100,967 | 2,009 | 1.99% | ||
| Commercial real estate | |||||
| Construction, land development & vacant land | 124,896 | 3,518 | 2.82% | ||
| Non-owner occupied | 160,965 | 1,336 | 0.83% | ||
| Owner occupied | 183,010 | 2,706 | 1.48% | ||
| Farmland | 41,033 | 10 | 0.02% | ||
| Total commercial real estate | 509,904 | 7,570 | 1.48% | ||
| Consumer | 60,090 | 63 | 0.10% | ||
| Residential real estate | |||||
| Residential | 545,770 | 6,324 | 1.16% | ||
| Multi-family | 65,603 | 979 | 1.49% | ||
| Home equity lines | 111,597 | 582 | 0.52% | ||
| Total residential | 722,970 | 7,885 | 1.09% | ||
| Total loans | $1,393,931 | $17,527 | 1.26% | ||
| Pooled Trust Preferred Securities Detail | |||||||
| December 31, 2009 | |||||||
| (Unaudited) | Unrealized | ||||||
| (Loss) | Current | ||||||
| Class/ | Par | Book | Fair | Recognized | Quarter | Cumulative | |
| Deal Name | Tranche | Value | Value | Value | In OCI | OTTI | OTTI |
| (In Thousands) | |||||||
| PreTSL X | B1 | $10,088 | $188 | $188 | $-- | $5,569 | $9,900 |
| PreTSL XII | B1 | 20,212 | 366 | 366 | -- | 12,319 | 19,748 |
| PreTSL XIV | B1 | 9,026 | 901 | 901 | -- | 7,989 | 8,099 |
| PreTSL XXII | C1 | 12,670 | 119 | 119 | -- | 9,931 | 12,559 |
| PreTSL XXIII | C1 | 7,952 | 74 | 74 | -- | 7,890 | 7,890 |
| $59,948 | $1,648 | $1,648 | $-- | $43,698 | $58,196 | ||
| First Community Bancshares, Inc. | |||||
| Selected Financial Information | |||||
| As of and for the Quarter Ended | |||||
| (Unaudited) | December 31, | September 30, | June 30, | March 31, | December 31, |
| (Dollars in Thousands) | 2009 | 2009 | 2009 | 2009 | 2008 |
| Ratios | |||||
| Return on average assets | -5.99% | -2.15% | 0.34% | 0.87% | -2.77% |
| Return on average common equity | -51.15% | -18.78% | 3.82% | 10.61% | -33.28% |
| Net interest margin | 3.92% | 3.68% | 3.62% | 3.73% | 3.93% |
| Efficiency ratio for the quarter | 61.29% | 59.40% | 58.62% | 58.25% | 57.97% |
| Efficiency ratio year-to-date | 59.14% | 58.37% | 58.43% | 58.25% | 57.54% |
| Equity as a percent of total assets at end of period | 11.16% | 11.55% | 12.87% | 9.90% | 10.33% |
| Average earning assets as a percentage of average total assets | 87.41% | 87.14% | 86.78% | 86.68% | 86.38% |
| Average loans as a percentage of average deposits | 85.13% | 83.25% | 81.19% | 82.83% | 86.01% |
| Average Balances | |||||
| Investments | $549,386 | $536,485 | $564,934 | $521,776 | $508,289 |
| Loans | 1,406,497 | 1,362,603 | 1,269,584 | 1,292,179 | 1,235,023 |
| Earning assets | 2,001,576 | 1,978,626 | 1,892,403 | 1,887,583 | 1,768,113 |
| Total assets | 2,289,946 | 2,270,592 | 2,180,779 | 2,177,762 | 2,046,879 |
| Deposits | 1,652,082 | 1,636,744 | 1,563,640 | 1,560,109 | 1,435,956 |
| Interest-bearing deposits | 1,452,369 | 1,437,763 | 1,361,970 | 1,360,798 | 1,230,547 |
| Borrowings | 346,990 | 347,292 | 359,628 | 372,282 | 400,393 |
| Interest-bearing liabilities | 1,799,359 | 1,785,055 | 1,721,597 | 1,733,080 | 1,630,940 |
| Equity | 268,074 | 260,126 | 233,093 | 219,653 | 189,122 |
| Tax equivalent net interest income | 19,778 | 18,329 | 17,093 | 17,349 | 17,486 |
| First Community Bancshares, Inc. | ||||||
| Consolidated Average Balance Sheets, Yields, and Rates | ||||||
| Three Months Ended December 31, | ||||||
| 2009 | 2008 | |||||
| Yield/ | Yield/ | |||||
| Average | Interest | Rate | Average | Interest | Rate | |
| (Unaudited) | Balance | (1) | (1) | Balance | (1) | (1) |
| (Dollars in Thousands) | ||||||
| Earning assets | ||||||
| Loans held for investment (2) | $1,406,497 | $22,123 | 6.24% | $1,235,023 | $19,848 | 6.39% |
| Securities available for sale | 541,933 | 6,261 | 4.58% | 499,617 | 8,127 | 6.47% |
| Held to maturity securities | 7,453 | 152 | 8.09% | 8,672 | 173 | 7.94% |
| Interest-bearing deposits with banks | 45,693 | 32 | 0.28% | 24,801 | 46 | 0.74% |
| Total earning assets | 2,001,576 | $28,568 | 5.66% | 1,768,113 | $28,194 | 6.34% |
| Other assets | 288,370 | 278,766 | ||||
| Total | $2,289,946 | $2,046,879 | ||||
| Interest-bearing liabilities | ||||||
| Interest-bearing demand deposits | $226,061 | $173 | 0.30% | $184,184 | $79 | 0.17% |
| Savings deposits | 366,352 | 752 | 0.81% | 304,800 | 846 | 1.10% |
| Time deposits | 859,956 | 5,230 | 2.41% | 741,563 | 6,324 | 3.39% |
| Fed funds purchased | -- | -- | -- | 9,097 | 32 | 1.40% |
| Retail repurchase agreements | 98,141 | 319 | 1.29% | 119,485 | 489 | 1.63% |
| Wholesale repurchase agreements | 50,000 | 473 | 3.75% | 50,000 | 552 | 4.39% |
| FHLB borrowings & other long-term debt | 198,849 | 1,843 | 3.68% | 221,811 | 2,386 | 4.28% |
| Total interest-bearing liabilities | 1,799,359 | 8,790 | 1.94% | 1,630,940 | 10,708 | 2.61% |
| Noninterest-bearing demand deposits | 199,713 | 205,409 | ||||
| Other liabilities | 22,800 | 21,408 | ||||
| Stockholders' equity | 268,074 | 189,122 | ||||
| Total | $2,289,946 | $2,046,879 | ||||
| Net interest income | $19,778 | $17,486 | ||||
| Net interest rate spread (3) | 3.72% | 3.73% | ||||
| Net interest margin (4) | 3.92% | 3.93% | ||||
| (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 | ||||||
| Year Ended December 31, | ||||||
| 2009 | 2008 | |||||
| Yield/ | Yield/ | |||||
| Average | Interest | Rate | Average | Interest | Rate | |
| (Unaudited) | Balance | (1) | (1) | Balance | (1) | (1) |
| (Dollars in Thousands) | ||||||
| Earning assets | ||||||
| Loans held for investment (2) | $1,333,112 | $82,785 | 6.21% | $1,199,076 | $80,305 | 6.70% |
| Securities available for sale | 537,278 | 27,638 | 5.14% | 576,864 | 33,438 | 5.80% |
| Held to maturity securities | 7,828 | 643 | 8.21% | 10,302 | 849 | 8.24% |
| Interest-bearing deposits with banks | 62,242 | 165 | 0.27% | 15,489 | 306 | 1.98% |
| Total earning assets | 1,940,460 | $111,231 | 5.73% | 1,801,731 | $ 114,898 | 6.38% |
| Other assets | 289,724 | 244,455 | ||||
| Total | $2,230,184 | $2,046,186 | ||||
| Interest-bearing liabilities | ||||||
| Interest-bearing demand deposits | $205,997 | $443 | 0.22% | $174,809 | $292 | 0.17% |
| Savings deposits | 334,217 | 2,588 | 0.77% | 312,363 | 4,693 | 1.50% |
| Time deposits | 863,357 | 24,765 | 2.87% | 671,729 | 24,807 | 3.69% |
| Fed funds purchased | -- | -- | -- | 15,942 | 362 | 2.27% |
| Retail repurchase agreements | 101,775 | 1,375 | 1.35% | 143,159 | 3,029 | 2.12% |
| Wholesale repurchase agreements | 50,000 | 1,922 | 3.84% | 50,000 | 1,630 | 3.26% |
| FHLB borrowings & other long-term debt | 204,678 | 7,589 | 3.71% | 244,801 | 10,117 | 4.13% |
| Total interest-bearing liabilities | 1,760,024 | 38,682 | 2.20% | 1,612,803 | 44,930 | 2.79% |
| Noninterest-bearing demand deposits | 199,917 | 211,791 | ||||
| Other liabilities | 24,832 | 19,850 | ||||
| Stockholders' equity | 245,411 | 201,742 | ||||
| Total | $2,230,184 | $2,046,186 | ||||
| Net interest income | $72,549 | $69,968 | ||||
| Net interest rate spread (3) | 3.53% | 3.59% | ||||
| Net interest margin (4) | 3.74% | 3.88% | ||||
| (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. | ||||||