BLUEFIELD, Va., April 23, 2012 (GLOBE NEWSWIRE) -- First Community Bancshares, Inc. (Nasdaq:FCBC) (www.fcbinc.com) (the "Company") today reported net income of $6.00 million for the quarter ended March 31, 2012. Net income available to common shareholders totaled $5.72 million, or $0.31 per diluted common share, for the quarter ended March 31, 2012.
First Quarter 2012 Highlights –
- Net income increased $1.71 million, or 39.72%, compared to the fourth quarter of 2011 and $250 thousand, or 4.35%, compared with the first quarter of 2011.
- Core earnings increased $827 thousand, or 15.35%, compared with the first quarter of 2011.
- Core return on average assets was 1.15% and core return on average tangible common equity was 12.22% for the first quarter of 2011.
- Deposit and borrowing costs decreased $1.61 million, or 25.49%, compared with the first quarter of 2011.
- Operating costs decreased $1.87 million, or 10.35%, compared with the first quarter of 2011.
- The provision for loan losses was reduced $1.51 million, or 62.15%, compared with the fourth quarter of 2011 and $690 thousand, or 42.80%, compared with the first quarter of 2011.
- Net charge-offs decreased $1.31 million, or 49.70%, compared with the fourth quarter of 2011 and $285 thousand, or 17.68%, compared with the first quarter of 2011.
- Tangible book value per common share increased $0.19, or 1.66%, to $11.64 compared with the fourth quarter of 2011.
- The Company's efficiency ratio of 57.18% for the first quarter of 2012 shows significant improvement when compared with the efficiency ratio reported for the first quarter of 2011 of 63.43%.
Net Interest Income
Net interest income decreased $298 thousand, or 1.63%, to $17.98 million for the first quarter of 2012 compared with the first quarter of 2011. The tax equivalent net interest margin decreased 5 basis points to 3.91% for the first quarter of 2012 compared with 3.96% for the first quarter of 2011. Total interest income decreased $1.91 million, or 7.76%, to $22.68 million for the first quarter of 2012 compared with the first quarter of 2011. The decrease reflects continued loan and investment repricing effectively reducing the average yields. The tax equivalent yield on loans decreased to 5.60% while the average loan balance increased $11.72 million to $1.39 billion for the first quarter of 2012 compared with the first quarter of 2011.
Total interest expense decreased $1.61 million, or 25.49%, to $4.71 million for the first quarter of 2012 compared with the first quarter of 2011. Deposit costs decreased $1.48 million, or 38.02%, to $2.41 million for the first quarter of 2012 compared with the first quarter of 2011, which was primarily due to a 37 basis point decrease in the average rate paid on interest-bearing deposits. Borrowing costs decreased $135 thousand, or 5.54%, to $2.30 million for the first quarter of 2012 compared with the first quarter of 2011, which was primarily due to a $26.85 million decrease in the average borrowings balance due to the redemption of repurchase agreements and declining commercial cash management balances. The average rate paid on interest-bearing liabilities decreased 30 basis points to 1.18% for the first quarter of 2012 compared with the first quarter of 2011. The average balance of interest-bearing liabilities decreased $132.79 million, or 7.65%, to $1.60 billion for the first quarter of 2012 compared with the first quarter of 2011, which included a $105.94 million decrease in average interest-bearing deposits.
Provision for Loan Losses
The provision for loan losses decreased $690 thousand, or 42.80%, to $922 thousand for the first quarter of 2012, which compares favorably with $1.61 million recorded for the first quarter of 2011. The quarter ended March 31, 2012, marks the sixth consecutive quarter of provision decreases when compared to the prior year's comparable quarter.
Noninterest Income
Noninterest income decreased $1.51 million, or 15.88%, to $7.99 million for the first quarter of 2012 compared with the first quarter of 2011, which was largely due to a reduction in the realized net gain on sale of securities. The Company realized a $51 thousand net gain on sale of securities for the first quarter of 2012, which was $1.79 million, or 97.22%, less than the net gain reported for first quarter of 2011. Wealth management revenues remained constant for the first quarters of 2012 and 2011 at $894 thousand. The Trust and Wealth Management Divisions reported $897 million in assets under management as of March 31, 2012. Service charges on deposit accounts remained stable, decreasing only $18 thousand for the first quarter of 2012 compared with the first quarter of 2011. Insurance commissions decreased $367 thousand, or 18.89%, to $1.58 million for the first quarter of 2012 compared with the same quarter of 2011, which is reflective of agency offices sold as part of strategic realignment during the third quarter of 2011.
Noninterest Expense
Noninterest expense decreased $1.87 million, or 10.35%, to $16.19 million for the first quarter of 2012 compared with the first quarter of 2011. Salaries and employee benefits decreased $907 thousand, or 9.94%, to $8.22 million for the first quarter of 2012 compared with the first quarter of 2011. Occupancy, furniture, and equipment expense decreased $225 thousand, or 8.78%, to $2.34 million for the first quarter of 2012 compared with the first quarter of 2011. Federal Deposit Insurance Corporation ("FDIC") premiums and assessments decreased $556 thousand, or 63.3%, to $322 thousand for the first quarter of 2012 compared with the first quarter of 2011, which was primarily due to the FDIC's change in assessment methodology for deposit insurance. Other operating expense increased $315 thousand, or 6.61%, to $5.08 million for the first quarter of 2012 compared with the first quarter of 2011. During the first quarter of 2012, the Company incurred merger related expenses of $163 thousand in connection with the acquisition of Peoples Bank of Virginia, which is expected to close during the third quarter of 2012. Other operating expense included losses on sales and expenses associated with other real estate owned ("OREO") of $821 thousand for the first quarter of 2012 compared to $256 thousand for the first quarter of 2011. The efficiency ratio for the first quarter of 2012 of 57.18% shows significant improvement when compared with 63.43% for the first quarter of 2011.
Allowance for Loan Losses and Credit Quality
The allowance for loan losses decreased to $25.80 million at March 31, 2012, compared with $26.21 million at December 31, 2011, and $26.48 million at March 31, 2011. The allowance for loan losses as a percentage of loans decreased to 1.86% at March 31, 2012, compared with 1.88% at December 31, 2011, and 1.93% at March 31, 2011. As of March 31, 2012, net charge-offs decreased $1.31 million, or 49.70%, compared with the fourth quarter of 2011, and $285 thousand, or 17.68%, compared with the first quarter of 2011. Annualized net charge-offs as a percentage of average loans were 0.38% for the first quarter of 2012, which represents a decrease of 8 basis points compared with the first quarter of 2011 continuing a general downward trend in net charge-off activity.
As of March 31, 2012, the Company's loan quality measures continued to compare favorably to the industry. Delinquent loans, which consist of loans 30 days or more past due and loans on nonaccrual status, as a percentage of total loans were 2.69% at March 31, 2012. At quarter end, the Company's nonperforming loans as a percentage of total loans were 1.97% and nonperforming assets as a percentage of total assets were 1.41%. Nonperforming assets included $2.67 million in unseasoned loan restructurings at March 31, 2012.
Balance Sheet and Capital
Consolidated assets totaled $2.20 billion as of March 31, 2012, an increase of $37.42 million, or 1.73%, compared with $2.16 billion at December 31, 2011. Consolidated liabilities totaled $1.89 billion as of March 31, 2012, an increase of $33.08 million, or 1.78%, compared with $1.86 billion at December 31, 2011. Total stockholders' equity increased to $310.12 million as of March 31, 2012, compared with $306.79 million at December 31, 2011. Book value per as-converted common share increased to $16.19 for the quarter ended March 31, 2012, compared with $16.02 for the quarter ended December 31, 2011. During the first quarter of 2012, the Company paid a $0.10 per share cash dividend on common shares.
The Company significantly exceeds regulatory "well capitalized" targets as of March 31, 2012, with a total risk-based capital ratio of 18.72%, Tier 1 risk-based capital ratio of 17.46%, and a Tier 1 leverage ratio of 11.63%.
Pending Acquisition of Peoples Bank of Virginia
On March 1, 2012, the Company announced the signing of a definitive agreement to acquire Peoples Bank of Virginia, a state-chartered commercial bank headquartered in Richmond, Virginia. Peoples Bank of Virginia was established in 2002, operates four branches in the Richmond, Virginia area, and as of December 31, 2011, had $286 million in assets, $181 million in loans, $246 million in deposits, and $39 million in common equity. The combined company will become the 10th largest Virginia-based bank in the Richmond metropolitan statistics area.
The Company will host an investor and media teleconference and webcast on Monday, April 23, 2012, at 11:00 a.m. To access the teleconference, the toll-free number is (877) 407-8033. 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 first quarter 2012 earnings press release and financial summary will 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 in accordance with generally accepted accounting principles in the United States, ("GAAP). This press release also refers to certain non-GAAP financial measures that the Company believes provide investors with important information, when considered with GAAP financial measures, regarding our operational performance. Analysis of non-GAAP financial measures should be used in conjunction with results presented in accordance with GAAP.
Core earnings are a non-GAAP financial measure that excludes certain items from net income. Excluded items include gains, losses, and impairment losses on securities; goodwill impairment; losses on other real estate owned; amortization of intangibles; taxes; and other nonrecurring income and expense items. Management believes that core earnings provide the Company and investors a valuable tool to evaluate the Company's financial results.
The efficiency ratio is a non-GAAP financial measure that is computed by dividing core noninterest expense by the sum of tax equivalent net interest income and core noninterest income. The Management believes this measure provides investors with important information about the Company's operating expense control and efficiency of operations. Management also believes this ratio focuses attention on core operating performance of the Company over time and is highly useful in comparing period-to-period operating performance of core business operations. The efficiency ratio used by the Company may not be comparable to efficiency ratios reported by other financial institutions.
Tangible book value per share is a non-GAAP financial measure that is defined as stockholders' equity less goodwill and other intangible assets, divided by as-converted common shares outstanding. Average tangible common equity is a non-GAAP financial measure that is defined as average stockholder's equity less average goodwill, other intangible assets, and the preferred liquidation preference.
About First Community Bancshares, Inc.
First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a $2.20 billion financial holding company and the parent company of First Community Bank. First Community Bank operates fifty-four banking locations throughout Virginia, West Virginia, North Carolina, and Tennessee. First Community Bank offers wealth management and investment services through its Trust and Financial Services Division and First Community Wealth Management, a registered investment advisory firm. The Trust Division and First Community Wealth Management managed assets with a market value of $897 million as of March 31, 2012. 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 six insurance offices throughout Virginia, West Virginia, and North Carolina. 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 Company's website 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 to reflect circumstances or events that occur after the date the forward-looking statements are made.
| FIRST COMMUNITY BANCSHARES, INC. | ||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||
| Three Months Ended | ||
| March 31, | ||
| (Amounts in thousands, except share and per share data) | 2012 | 2011 |
| Interest income | ||
| Interest and fees on loans held for investment | $ 19,368 | $ 20,455 |
| Interest on securities --- taxable | 2,079 | 2,533 |
| Interest on securities --- nontaxable | 1,196 | 1,533 |
| Interest on deposits in banks | 39 | 69 |
| Total interest income | 22,682 | 24,590 |
| Interest expense | ||
| Interest on deposits | 2,405 | 3,880 |
| Interest on short-term borrowings | 595 | 640 |
| Interest on long-term borrowings | 1,705 | 1,795 |
| Total interest expense | 4,705 | 6,315 |
| Net interest income | 17,977 | 18,275 |
| Provision for loan losses | 922 | 1,612 |
| Net interest income after provision for loan losses | 17,055 | 16,663 |
| Noninterest income | ||
| Wealth management income | 894 | 894 |
| Service charges on deposit accounts | 3,013 | 3,031 |
| Other service charges and fees | 1,585 | 1,406 |
| Insurance commissions | 1,576 | 1,943 |
| Net impairment losses recognized in earnings | -- | (527) |
| Net gain on sale of securities | 51 | 1,836 |
| Other operating income | 872 | 916 |
| Total noninterest income | 7,991 | 9,499 |
| Noninterest expense | ||
| Salaries and employee benefits | 8,222 | 9,129 |
| Occupancy expense of bank premises | 1,526 | 1,647 |
| Furniture and equipment | 811 | 915 |
| Amortization of intangible assets | 233 | 259 |
| FDIC premiums and assessments | 322 | 878 |
| FHLB debt prepayment fees | -- | 471 |
| Merger related expense | 163 | -- |
| Other operating expense | 4,916 | 4,764 |
| Total noninterest expense | 16,193 | 18,063 |
| Income before income taxes | 8,853 | 8,099 |
| Income tax expense | 2,852 | 2,348 |
| Net income | 6,001 | 5,751 |
| Dividends on preferred stock | 283 | -- |
| Net income available to common shareholders | $ 5,718 | $ 5,751 |
| Basic earnings per common share | $ 0.32 | $ 0.32 |
| Diluted earnings per common share | $ 0.31 | $ 0.32 |
| Cash dividends per common share | $ 0.10 | $ 0.10 |
| Weighted average basic shares outstanding | 17,849,376 | 17,867,953 |
| Weighted average diluted shares outstanding | 19,189,923 | 17,887,118 |
| Return on average assets | 1.06% | 1.05% |
| Return on average common equity | 7.88% | 8.47% |
| FIRST COMMUNITY BANCSHARES, INC. | |||||
| CONDENSED QUARTERLY STATEMENTS OF INCOME (Unaudited) | |||||
| As of and for the Quarter Ended | |||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |
| (Amounts in thousands, except share and per share data) | 2012 | 2011 | 2011 | 2011 | 2011 |
| Interest Income | |||||
| Interest and fees on loans held for investment | $ 19,368 | $ 19,947 | $ 20,084 | $ 20,094 | $ 20,455 |
| Interest on securities -- taxable | 2,079 | 2,023 | 1,711 | 1,850 | 2,533 |
| Interest on securities -- nontaxable | 1,196 | 1,190 | 1,180 | 1,291 | 1,533 |
| Interest on deposits in banks | 39 | 41 | 75 | 100 | 69 |
| Total interest income | 22,682 | 23,201 | 23,050 | 23,335 | 24,590 |
| Interest Expense | |||||
| Interest on deposits | 2,405 | 2,637 | 2,998 | 3,273 | 3,880 |
| Interest on short-term borrowings | 595 | 592 | 611 | 621 | 651 |
| Interest on long-term borrowings | 1,705 | 1,706 | 1,707 | 1,687 | 1,784 |
| Total interest expense | 4,705 | 4,935 | 5,316 | 5,581 | 6,315 |
| Net interest income | 17,977 | 18,266 | 17,734 | 17,754 | 18,275 |
| Provision for loan losses | 922 | 2,436 | 1,920 | 3,079 | 1,612 |
| Net interest income after provision for loan losses | 17,055 | 15,830 | 15,814 | 14,675 | 16,663 |
| Noninterest Income | |||||
| Wealth management income | 894 | 818 | 868 | 930 | 894 |
| Service charges on deposit accounts | 3,013 | 3,450 | 3,404 | 3,353 | 3,031 |
| Other service charges and fees | 1,585 | 1,429 | 1,426 | 1,461 | 1,406 |
| Insurance commissions | 1,576 | 1,170 | 1,523 | 1,561 | 1,943 |
| Net impairment losses recognized in earnings | -- | (1,548) | (210) | -- | (527) |
| Net gain on sale of securities | 51 | 26 | 178 | 3,224 | 1,836 |
| Other operating income | 872 | 1,261 | 877 | 834 | 916 |
| Total noninterest income | 7,991 | 6,606 | 8,066 | 11,363 | 9,499 |
| Noninterest Expense | |||||
| Salaries and employee benefits | 8,222 | 7,903 | 8,409 | 8,685 | 9,129 |
| Occupancy expense of bank premises | 1,526 | 1,589 | 1,476 | 1,568 | 1,647 |
| Furniture and equipment | 811 | 804 | 862 | 909 | 915 |
| Amortization of intangible assets | 233 | 250 | 250 | 261 | 259 |
| FDIC premiums and assessments | 322 | 344 | 348 | 414 | 878 |
| FHLB debt prepayment fees | -- | -- | -- | -- | 471 |
| Merger related expense | 163 | -- | -- | -- | -- |
| Goodwill impairment | -- | 1,239 | -- | -- | -- |
| Other operating expense | 4,916 | 4,925 | 4,715 | 5,901 | 4,764 |
| Total noninterest expense | 16,193 | 17,054 | 16,060 | 17,738 | 18,063 |
| Income before income taxes | 8,853 | 5,382 | 7,820 | 8,300 | 8,099 |
| Income tax expense | 2,852 | 1,087 | 2,502 | 2,572 | 2,348 |
| Net income | 6,001 | 4,295 | 5,318 | 5,728 | 5,751 |
| Dividends on preferred stock | 283 | 286 | 286 | 131 | -- |
| Net income available to common shareholders | $ 5,718 | $ 4,009 | $ 5,032 | $ 5,597 | $ 5,751 |
| Basic earnings per common share | $ 0.32 | $ 0.22 | $ 0.28 | $ 0.31 | $ 0.32 |
| Diluted earnings per common share | $ 0.31 | $ 0.22 | $ 0.28 | $ 0.31 | $ 0.32 |
| Cash dividends per common share | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 |
| Weighted average basic shares outstanding | 17,849,376 | 17,849,286 | 17,896,534 | 17,895,904 | 17,867,953 |
| Weighted average diluted shares outstanding | 19,189,923 | 19,159,090 | 19,205,634 | 18,534,489 | 17,887,118 |
| FIRST COMMUNITY BANCSHARES, INC. | ||
| RECONCILIATION OF GAAP NET INCOME TO CORE EARNINGS (Unaudited) | ||
| Three Months Ended | ||
| March 31, | ||
| 2012 | 2011 | |
| (Amounts in thousands, except per share data) | ||
| Net income, GAAP | $ 6,001 | $ 5,751 |
| Non-GAAP adjustments: | ||
| Net impairment losses recognized in earnings | -- | 527 |
| Net gain on sale of securities | (51) | (1,836) |
| Amortization of intangible assets | 233 | 259 |
| FHLB debt prepayment fees | -- | 471 |
| Merger related expense | 163 | -- |
| Total adjustments to core earnings | 345 | (579) |
| Tax effect | 130 | (217) |
| Core earnings, non-GAAP | $ 6,216 | $ 5,389 |
| Core return on average assets | 1.15% | 0.98% |
| Core return on average common equity | 8.57% | 7.94% |
| Core return on average tangible common equity | 12.22% | 11.73% |
| Core diluted earnings per common share | $0.32 | $0.30 |
| FIRST COMMUNITY BANCSHARES, INC. | ||
| EFFICIENCY RATIO CALCULATION (Unaudited) | ||
| Three Months Ended | ||
| March 31, | ||
| 2012 | 2011 | |
| (Amounts in thousands) | ||
| Noninterest expense, GAAP | $ 16,193 | $ 18,063 |
| Non-GAAP adjustments: | ||
| FHLB debt prepayment fees | -- | (471) |
| Merger related expenses | (163) | -- |
| OREO expense and net loss | (821) | (256) |
| Adjusted noninterest expense | 15,209 | 17,336 |
| Net interest income, GAAP | 17,977 | 18,275 |
| Noninterest income, GAAP | 7,991 | 9,499 |
| Non-GAAP adjustments: | ||
| Tax equivalency adjustment | 683 | 866 |
| Net impairment losses recognized in earnings | -- | 527 |
| Net gain on sale of securities | (51) | (1,836) |
| Adjusted net interest and noninterest income | 26,600 | 27,331 |
| Efficiency Ratio | 57.18% | 63.43% |
| FIRST COMMUNITY BANCSHARES, INC. | |||||
| CONDENSED QUARTERLY BALANCE SHEETS (Unaudited) | |||||
| For the Quarter Ended | |||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |
| 2012 | 2011 | 2011 | 2011 | 2011 | |
| (Amounts in thousands) | |||||
| Cash and due from banks | $ 36,555 | $ 34,578 | $ 38,776 | $ 31,451 | $ 52,684 |
| Federal funds sold | 61,328 | 1,909 | 103,179 | 162,629 | 121,974 |
| Interest-bearing deposits in banks | 11,729 | 10,807 | 6,365 | 36,539 | 809 |
| Total cash and cash equivalents | 109,612 | 47,294 | 148,320 | 230,619 | 175,467 |
| Securities available-for-sale | 478,352 | 482,430 | 449,387 | 349,976 | 430,965 |
| Securities held-to-maturity | 2,874 | 3,490 | 3,342 | 4,106 | 4,524 |
| Loans held for sale | 3,522 | 5,820 | 3,575 | 920 | 2,614 |
| Loans held for investment, net of unearned income | 1,386,525 | 1,396,067 | 1,374,656 | 1,373,944 | 1,375,685 |
| Less allowance for loan losses | 25,800 | 26,205 | 26,407 | 26,482 | 26,482 |
| Loans, net | 1,364,247 | 1,375,682 | 1,351,824 | 1,348,382 | 1,351,817 |
| Property, plant, and equipment, net | 54,616 | 54,721 | 54,860 | 55,808 | 56,189 |
| Other real estate owned | 3,829 | 5,914 | 5,942 | 5,585 | 5,644 |
| Interest receivable | 5,886 | 6,193 | 6,264 | 6,202 | 7,288 |
| Goodwill | 83,056 | 83,056 | 83,832 | 85,132 | 84,930 |
| Intangible assets | 4,093 | 4,326 | 4,576 | 5,205 | 5,466 |
| Other assets | 96,704 | 102,747 | 111,745 | 115,385 | 118,690 |
| Total assets | $2,203,269 | $2,165,853 | $2,220,092 | $2,206,400 | $2,240,980 |
| Deposits: | |||||
| Noninterest-bearing | $ 253,352 | $ 240,268 | $ 233,683 | $ 219,488 | $ 222,072 |
| Interest-bearing | 307,136 | 275,156 | 295,804 | 271,622 | 287,006 |
| Savings | 397,850 | 394,707 | 396,767 | 405,409 | 420,481 |
| Time | 621,412 | 633,336 | 664,237 | 683,157 | 707,458 |
| Total deposits | 1,579,750 | 1,543,467 | 1,590,491 | 1,579,676 | 1,637,017 |
| Interest, taxes, and other liabilities | 23,203 | 20,452 | 20,030 | 20,563 | 20,459 |
| Securities sold under agreements to repurchase | 124,266 | 129,208 | 139,510 | 137,778 | 139,472 |
| FHLB advances | 150,000 | 150,000 | 150,000 | 150,000 | 150,000 |
| Other borrowings | 15,925 | 15,933 | 15,941 | 16,179 | 16,186 |
| Total liabilities | 1,893,144 | 1,859,060 | 1,915,972 | 1,904,196 | 1,963,134 |
| Preferred stock | 18,921 | 18,921 | 18,921 | 18,921 | -- |
| Common stock | 18,083 | 18,083 | 18,083 | 18,083 | 18,083 |
| Additional paid-in capital | 188,149 | 188,118 | 188,243 | 188,278 | 188,742 |
| Retained earnings | 97,588 | 94,720 | 92,498 | 89,257 | 85,450 |
| Treasury stock, at cost | (5,721) | (5,721) | (5,651) | (5,137) | (5,851) |
| Accumulated other comprehensive loss | (6,895) | (7,328) | (7,974) | (7,198) | (8,578) |
| Total stockholders' equity | 310,125 | 306,793 | 304,120 | 302,204 | 277,846 |
| Total liabilities and stockholders' equity | $2,203,269 | $2,165,853 | $2,220,092 | $2,206,400 | $2,240,980 |
| Shares outstanding at period end | 17,849,376 | 17,849,376 | 17,869,514 | 17,917,824 | 17,894,899 |
| Book value per common share at period end (1) | $ 16.19 | $ 16.02 | $ 15.86 | $ 16.87 | $ 15.53 |
| Tangible book value per common share at period end (2) | $ 11.64 | $ 11.45 | $ 11.25 | $ 11.82 | $ 10.48 |
| (1) Book value per common share is defined as stockholders' equity divided by as-converted common shares outstanding. | |||||
| (2) Tangible book value per common share is defined as stockholders' equity less goodwill and other intangibles divided by as-converted common shares outstanding. | |||||
| FIRST COMMUNITY BANCSHARES, INC. | ||||||||||
| SELECTED CREDIT QUALITY INFORMATION (Unaudited) | ||||||||||
| As of and for the Quarter Ended | ||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||
| (Amounts in thousands) | 2012 | 2011 | 2011 | 2011 | 2011 | |||||
| Allowance for loan losses | ||||||||||
| Beginning balance | $ 26,205 | $ 26,407 | $ 26,482 | $ 26,482 | $ 26,482 | |||||
| Provision for loan losses | 922 | 2,436 | 1,920 | 3,079 | 1,612 | |||||
| Charge-offs | (1,562) | (2,915) | (3,062) | (3,456) | (2,027) | |||||
| Recoveries | 235 | 277 | 1,067 | 377 | 415 | |||||
| Net charge-offs | (1,327) | (2,638) | (1,995) | (3,079) | (1,612) | |||||
| Ending balance | $ 25,800 | $ 26,205 | $ 26,407 | $ 26,482 | $ 26,482 | |||||
| Summary of Asset Quality | ||||||||||
| Nonaccrual loans | $ 24,617 | $ 24,487 | $ 22,877 | $ 22,037 | $ 17,703 | |||||
| Loans 90 days or more past due and still accruing interest | -- | -- | -- | -- | -- | |||||
| Restructured loans (1) | 2,668 | 600 | 964 | 878 | 1,509 | |||||
| Total nonperforming loans | 27,285 | 25,087 | 23,841 | 22,915 | 24,739 | |||||
| Other real estate owned | 3,829 | 5,914 | 5,942 | 5,585 | 5,644 | |||||
| Total nonperforming assets | $ 31,114 | $ 31,001 | $ 29,783 | $ 28,500 | $ 29,649 | |||||
| Restructured loans performing in accordance with terms (2) | $ 721 | $ 827 | $ 1,156 | $ 7,044 | $ 7,519 | |||||
| Total restructured loans (3) | 9,720 | 9,454 | 12,198 | 12,170 | 12,598 | |||||
| Asset Quality Ratios | ||||||||||
| Nonperforming loans to total loans | 1.97% | 1.80% | 1.73% | 1.67% | 1.80% | |||||
| Nonperforming assets to total assets | 1.41% | 1.43% | 1.34% | 1.29% | 1.32% | |||||
| Allowance for loan losses to nonperforming loans | 94.56% | 104.46% | 110.76% | 115.57% | 107.05% | |||||
| Allowance for loan losses to total loans | 1.86% | 1.88% | 1.92% | 1.93% | 1.93% | |||||
| Annualized net charge-offs to average loans | 0.38% | 0.75% | 0.57% | 0.89% | 0.46% | |||||
| (1) Unseasoned restructured loans include loans modified within the last six months, excluding those on nonaccrual status. | ||||||||||
| (2) Performing restructured loans include loans modified in the last six to twelve months, excluding those on nonaccrual status. | ||||||||||
| (3) Total restructured loans include all modified loans, excluding those on nonaccrual status. | ||||||||||
| FIRST COMMUNITY BANCSHARES, INC. | |||
| NONACCRUAL LOAN DETAIL (Unaudited) | |||
| As of March 31, 2012 | |||
| Loans | Nonaccrual | ||
| Held for | Nonaccrual | Loans to Loans | |
| (Amounts in thousands) | Investment | Loans | Outstanding |
| Commercial loans | |||
| Construction --- commercial | $ 19,593 | $ 57 | 0.29% |
| Land development | 2,571 | 49 | 1.91% |
| Other land loans | 23,572 | 258 | 1.09% |
| Commercial and industrial | 80,637 | 1,866 | 2.31% |
| Multi-family residential | 78,815 | 480 | 0.61% |
| Single family non-owner occupied | 108,247 | 1,988 | 1.84% |
| Non-farm, non-residential | 356,029 | 10,360 | 2.91% |
| Agricultural | 1,607 | -- | 0.00% |
| Farmland | 37,751 | 103 | 0.27% |
| Total commercial | 708,822 | 15,161 | 2.14% |
| Consumer real estate loans | |||
| Home equity lines | 109,751 | 448 | 0.41% |
| Single family owner occupied | 479,411 | 8,938 | 1.86% |
| Owner occupied construction | 17,995 | 30 | 0.17% |
| Total consumer real estate | 607,157 | 9,416 | 1.55% |
| Consumer and other loans | |||
| Consumer | 65,036 | 40 | 0.06% |
| Other | 5,510 | -- | 0.00% |
| Total consumer and other | 70,546 | 40 | 0.06% |
| Total loans | $ 1,386,525 | $ 24,617 | 1.78% |
| FIRST COMMUNITY BANCSHARES, INC. | |||||
| SELECTED FINANCIAL INFORMATION (Unaudited) | |||||
| As of and for the Quarter Ended | |||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |
| 2012 | 2011 | 2011 | 2011 | 2011 | |
| Selected Ratios | |||||
| Return on average assets | 1.06% | 0.73% | 0.91% | 1.02% | 1.05% |
| Return on average common equity | 7.88% | 5.53% | 6.94% | 7.91% | 8.47% |
| Net interest margin | 3.91% | 3.93% | 3.77% | 3.83% | 3.96% |
| Efficiency ratio for the quarter | 57.18% | 56.73% | 57.97% | 60.07% | 63.43% |
| Efficiency ratio year-to-date | 57.18% | 59.56% | 60.52% | 61.77% | 63.43% |
| Total equity to total assets | 14.08% | 14.16% | 13.70% | 13.70% | 12.40% |
| Average earning assets to average assets | 88.24% | 88.27% | 88.39% | 88.11% | 88.07% |
| Average loans to average deposits | 89.85% | 89.45% | 87.15% | 85.57% | 84.78% |
| (Amounts in thousands) | |||||
| Average Balances | |||||
| Loans | $ 1,394,246 | $ 1,392,650 | $ 1,379,144 | $ 1,373,988 | $ 1,382,526 |
| Investment securities | 481,595 | 479,638 | 417,291 | 386,706 | 470,833 |
| Earning assets | 1,918,366 | 1,913,768 | 1,936,720 | 1,935,470 | 1,961,538 |
| Total assets | 2,174,004 | 2,168,166 | 2,191,145 | 2,196,691 | 2,227,255 |
| Total deposits | 1,551,728 | 1,556,990 | 1,582,481 | 1,605,694 | 1,630,701 |
| Interest-bearing deposits | 1,312,865 | 1,320,186 | 1,357,938 | 1,386,292 | 1,418,807 |
| Borrowings | 290,015 | 295,303 | 300,751 | 297,857 | 316,864 |
| Interest-bearing liabilities | 1,602,880 | 1,615,489 | 1,658,689 | 1,684,149 | 1,735,671 |
| Stockholders' equity | 310,795 | 306,779 | 306,524 | 291,474 | 275,350 |
| Tax equivalent net interest income | 18,660 | 18,947 | 18,410 | 18,490 | 19,141 |
| FIRST COMMUNITY BANCSHARES, INC. | ||||||
| AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited) | ||||||
| Three Months Ended March 31, | ||||||
| 2012 | 2011 | |||||
| Average | Average Yield/ | Average | Average Yield/ | |||
| (Amounts in thousands) | Balance | Interest (1) | Rate (1) | Balance | Interest (1) | Rate (1) |
| Assets | ||||||
| Earning assets | ||||||
| Loans (2) | $ 1,394,246 | $ 19,407 | 5.60% | $ 1,382,526 | $ 20,496 | 6.01% |
| Securities available-for-sale | 478,358 | 3,857 | 3.24% | 466,288 | 4,796 | 4.17% |
| Securities held-to-maturity | 3,237 | 62 | 7.70% | 4,545 | 95 | 8.48% |
| Interest-bearing deposits | 42,525 | 39 | 0.37% | 108,179 | 69 | 0.26% |
| Total earning assets | 1,918,366 | 23,365 | 4.90% | 1,961,538 | 25,456 | 5.26% |
| Other assets | 255,638 | 265,717 | ||||
| Total assets | $ 2,174,004 | $ 2,227,255 | ||||
| Liabilities | ||||||
| Interest-bearing deposits | ||||||
| Demand deposits | $ 282,887 | $ 31 | 0.04% | $ 271,604 | $ 211 | 0.32% |
| Savings deposits | 395,588 | 110 | 0.11% | 427,727 | 356 | 0.34% |
| Time deposits | 634,390 | 2,264 | 1.44% | 719,476 | 3,313 | 1.87% |
| Total interest-bearing deposits | 1,312,865 | 2,405 | 0.74% | 1,418,807 | 3,880 | 1.11% |
| Borrowings | ||||||
| Federal funds purchased | 1,970 | 2 | 0.41% | -- | -- | 0.00% |
| Retail repurchase agreements | 72,171 | 115 | 0.64% | 88,684 | 173 | 0.79% |
| Wholesale repurchase agreements | 50,000 | 468 | 3.76% | 50,000 | 467 | 3.79% |
| FHLB advances and other borrowings | 165,874 | 1,715 | 4.16% | 178,180 | 1,795 | 4.09% |
| Total borrowings | 290,015 | 2,300 | 3.19% | 316,864 | 2,435 | 3.12% |
| Total interest-bearing liabilities | 1,602,880 | 4,705 | 1.18% | 1,735,671 | 6,315 | 1.48% |
| Noninterest-bearing demand deposits | 238,863 | 211,894 | ||||
| Other liabilities | 21,466 | 4,340 | ||||
| Total liabilities | 1,863,209 | 1,951,905 | ||||
| Stockholders' equity | 310,795 | 275,350 | ||||
| Total liabilities and stockholders' equity | $ 2,174,004 | $ 2,227,255 | ||||
| Net interest income, tax equivalent | $ 18,660 | $ 19,141 | ||||
| Net interest rate spread (3) | 3.72% | 3.78% | ||||
| Net interest margin (4) | 3.91% | 3.96% | ||||
| (1) Fully taxable equivalent at the rate of 35% ("FTE"). The FTE basis adjusts for the tax benefits of income on certain tax exempt loans and investments using the federal statutory rate of 35% for each period presented. The Company believes this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and nontaxable amounts. | ||||||
| (2) Nonaccrual loans are included in average balances outstanding, but with no related interest income during the period of nonaccrual. | ||||||
| (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. | ||||||