First Community Bancshares, Inc. Announces Fourth Quarter and Full Year 2016 Results and Quarterly Dividend

 | Source: First Community Bancshares, Inc. First Community Bancshares, Inc.

BLUEFIELD, Va., Jan. 24, 2017 (GLOBE NEWSWIRE) -- First Community Bancshares, Inc. (NASDAQ:FCBC) (www.fcbinc.com) (the “Company”) today reported its unaudited results of operations and other financial information for the quarter and year ended December 31, 2016. The Company reported net income available to common shareholders of $6.40 million, or $0.38 per diluted common share for the quarter ended December 31, 2016, which represents an 11.76% increase in per share diluted earnings compared to the same quarter of 2015. Net income available to common shareholders was $25.13 million, or $1.45 per diluted common share for the year ended December 31, 2016, which represents a 10.69% increase in per share diluted earnings over 2015.

The Company also announced today that the Board of Directors declared a quarterly cash dividend to common shareholders of sixteen cents ($0.16) per common share, which represents an increase of 14.29% over the first quarter of 2016. The quarterly dividend is payable to common shareholders of record on February 3, 2017, and is expected to be paid on or about February 17, 2017. The current year marks the 32nd consecutive year of cash dividends paid to stockholders.

On October 1, 2016, the Company sold two North Carolina insurance offices operating under the trade name Greenpoint Insurance Group, Inc. and two Virginia offices operating under the trade name Carr & Hyde Insurance to Ascension Insurance Agency, Inc. The transaction does not impact the Company’s in-branch insurance offices operating as First Community Insurance Services, Inc. in West Virginia and Virginia.

On January 9, 2017, the Company redeemed all of its previously issued trust preferred securities totaling $15.46 million. The callable trust preferred securities bore an interest rate of three-month LIBOR plus 2.95% with a maturity date of October 8, 2033.

Fourth Quarter 2016 Highlights

  • Income Statement
    • Net income available to common shareholders increased $256 thousand, or 4.16%, to $6.40 million compared to the same quarter of 2015.
    • Diluted earnings per share increased $0.04, or 11.76%, to $0.38 compared to the same quarter of 2015.
    • Core, non-GAAP diluted earnings per common share increased $0.02, or 5.88%, to $0.36 compared to the same quarter of 2015.
    • Net interest margin increased 1 basis point to 3.99%, and normalized net interest margin increased 15 basis points to 3.83% compared to the same quarter of 2015.

  • Balance Sheet
    • The non-covered loan portfolio increased $172.45 million, or 10.62%, compared to December 31, 2015.
    • Book value per common share increased $1.00 to $19.95 compared to December 31, 2015.
    • The Company repurchased 29,518 common shares during the quarter resulting in 1,182,294 shares repurchased during the year. The Company has repurchased 2.55 million shares since January 1, 2014.
    • The Company and its subsidiary bank both significantly exceed regulatory “well capitalized” targets as of December 31, 2016.

  • Asset Quality
    • Total nonperforming assets decreased $5.51 million compared to December 31, 2015, largely due to a decrease in covered OREO.
    • Total non-covered nonperforming assets decreased $1.72 million compared to December 31, 2015.
    • Non-covered delinquent loans, which are comprised of loans 30 days or more past due and nonaccrual loans, as a percentage of total non-covered loans improved 33 basis points to 1.39% as of December 31, 2016, from 1.72% as of December 31, 2015.

Non-GAAP Financial Measures

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 used in conjunction with results presented in accordance with GAAP, regarding its operational performance. The Company’s non-GAAP financial measures presented in this release include core earnings, the efficiency ratio, tangible book value per common share, average tangible common equity, and normalized net interest margin. Management believes that core earnings provide the Company and investors a valuable tool to evaluate the Company’s financial results. Management believes that the efficiency ratio provides important information about the Company’s operating expense control and efficiency of operations. Management also believes this ratio focuses attention on the 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. The reconciliations of these measures to GAAP measures are provided within this news release.

About First Community Bancshares, Inc.

First Community Bancshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 45 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of December 31, 2016. First Community Bank provides insurance services through First Community Insurance Services and offers wealth management and investment advice through its Trust Division and First Community Wealth Management, which collectively managed $846 million in combined assets as of December 31, 2016. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. The Company reported consolidated assets of $2.39 billion as of December 31, 2016. Additional investor information is available on the Company’s website at www.fcbinc.com.

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 fiscal year end. 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.

Financial Performance

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
               
  Three Months Ended Year Ended
  December 31, September 30, June 30, March 31, December 31, December 31,
(Amounts in thousands, except share and per share data) 2016   2016   2016   2016   2015   2016   2015 
Interest income             
 Interest and fees on loans$21,956  $21,952  $22,237  $21,573  $21,633  $87,718  $87,632 
 Interest on securities 1,362   1,643   1,891   1,957   2,023   6,853   8,203 
 Interest on deposits in banks 98   26   9   20   21   153   267 
Total interest income 23,416   23,621   24,137   23,550   23,677   94,724   96,102 
Interest expense             
 Interest on deposits 1,145   1,133   1,087   1,114   1,202   4,479   5,878 
 Interest on borrowings 1,314   1,367   1,359   1,325   1,300   5,365   5,471 
Total interest expense 2,459   2,500   2,446   2,439   2,502   9,844   11,349 
Net interest income 20,957   21,121   21,691   21,111   21,175   84,880   84,753 
Provision for (recovery of) loan losses 500   (1,154)  722   1,187   434   1,255   2,191 
Net interest income after              
 provision (recovery) 20,457   22,275   20,969   19,924   20,741   83,625   82,562 
Total noninterest income 6,238   5,895   7,030   7,903   7,483   27,066   29,530 
Total noninterest expense 16,653   18,557   18,722   18,814   19,083   72,746   76,171 
Income before income taxes 10,042   9,613   9,277   9,013   9,141   37,945   35,921 
Income tax expense 3,638   3,230   3,022   2,929   2,993   12,819   11,381 
Net income  6,404   6,383   6,255   6,084   6,148   25,126   24,540 
Dividends on preferred stock -   -   -   -   -   -   105 
Net income available to common shareholders$6,404  $6,383  $6,255  $6,084  $6,148  $25,126  $24,435 
               
Earnings per common share             
 Basic$0.38  $0.37  $0.36  $0.34  $0.34  $1.45  $1.32 
 Diluted 0.38   0.37   0.36   0.34   0.34   1.45   1.31 
Cash dividends per common share 0.16   0.16   0.14   0.14   0.14   0.60   0.54 
Weighted average shares outstanding             
 Basic 16,891,010   17,031,074   17,414,320   17,859,197   18,193,824   17,319,689   18,531,039 
 Diluted 17,043,869   17,083,526   17,462,845   17,892,531   18,226,719   17,365,524   18,727,464 
Performance ratios             
 Return on average assets 1.05%  1.03%  1.02%  0.99%  0.99%  1.02%  0.97%
 Return on average common equity 7.49%  7.58%  7.47%  7.15%  7.05%  7.42%  7.08%
 Return on average tangible common equity(1) 10.75%  11.07%  10.88%  10.34%  10.17%  10.76%  10.25%
               
(1) A non-GAAP financial measure defined as average stockholders’ equity less average goodwill, other intangibles, and preferred stock liquidation preference
 


RECONCILIATION OF GAAP NET INCOME TO CORE EARNINGS (Unaudited)
                
   Three Months Ended Year Ended
   December 31, September 30, June 30, March 31, December 31, December 31,
    2016   2016   2016   2016   2015   2016   2015 
(Amounts in thousands, except per share data)             
Net income, GAAP$6,404  $6,383  $6,255  $6,084  $6,148  $25,126  $24,540 
Non-GAAP adjustments:             
 Net gain on divestitures (619)  (3,065)  -   -   -   (3,684)  - 
 Allowance reversal for sold loans -   (1,354)  -   -   -   (1,354)  - 
 Merger, acquisition, and divestiture expense 55   226   410   39   -   730   86 
 Net (gain) loss on sale of securities (388)  (25)  79   (1)  7   (335)  (144)
 FHLB debt prepayment fees -   -   -   -   -   -   1,702 
 Net impairment losses -   4,635   11   -   -   4,646   - 
 Other non-core items (48)  (264)  -   (240)  31   (552)  (1,004)
Total adjustments to core earnings (1,000)  153   500   (202)  38   (549)  640 
Tax effect (708)  56   184   (74)  14   (542)  660 
Core earnings, non-GAAP(1)$6,112  $6,480  $6,571  $5,956  $6,172  $25,119  $24,520 
                
Core diluted earnings per common share$0.36  $0.38  $0.38  $0.33  $0.34  $1.45  $1.31 
Performance ratios             
 Core return on average assets 1.01%  1.05%  1.07%  0.97%  0.99%  1.02%  0.97%
 Core return on average common equity 7.15%  7.70%  7.85%  7.00%  7.08%  7.42%  7.09%
 Core return on average tangible common equity(2) 10.26%  11.24%  11.43%  10.12%  10.21%  10.75%  10.25%
                
(1) Excludes gains, losses, and impairment losses on securities; goodwill and intangible impairment; taxes; and other non-recurring income and expense items from net income
(2) A non-GAAP financial measure defined as average stockholders’ equity less average goodwill, other intangibles, and preferred stock liquidation preference
                

Net Interest Income and Margin

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
              
   Three Months Ended December 31,
   2016
 2015
   Average    Average Yield/ Average    Average Yield/
(Amounts in thousands)Balance Interest(1) Rate(1) Balance Interest(1) Rate(1)
Assets           
Earning assets           
 Loans(2)$1,846,848 $22,012 4.74% $1,694,569 $21,661 5.07%
 Securities available for sale 193,342  1,644 3.38%  377,213  2,349 2.47%
 Securities held to maturity 67,254  182 1.08%  72,568  194 1.06%
 Interest-bearing deposits 35,470  98 1.10%  19,544  21 0.43%
Total earning assets 2,142,914  23,936 4.44%  2,163,894  24,225 4.44%
Other assets 275,022      298,312    
Total assets$2,417,936     $2,462,206    
              
Liabilities and stockholders' equity           
Interest-bearing deposits           
 Demand deposits$348,869 $73 0.08% $344,214 $47 0.05%
 Savings deposits 522,864  57 0.04%  530,977  78 0.06%
 Time deposits 519,521  1,015 0.78%  561,443  1,077 0.76%
Total interest-bearing deposits 1,391,254  1,145 0.33%  1,436,634  1,202 0.33%
Borrowings           
 Federal funds purchased 82  - 0.00%  2,114  2 0.38%
 Retail repurchase agreements 66,776  12 0.07%  74,042  14 0.08%
 Wholesale repurchase agreements 48,913  464 3.77%  50,000  474 3.76%
 FHLB advances and other borrowings 92,175  838 3.62%  83,748  810 3.84%
Total borrowings 207,946  1,314 2.51%  209,904  1,300 2.46%
Total interest-bearing liabilities 1,599,200  2,459 0.61%  1,646,538  2,502 0.60%
Noninterest-bearing demand deposits 454,161      466,623    
Other liabilities 24,410      23,293    
Total liabilities 2,077,771      2,136,454    
Stockholders' equity 340,165      345,752    
Total liabilities and stockholders' equity$2,417,936     $2,482,206    
Net interest income, FTE  $21,477     $21,723  
Net interest rate spread    3.83%     3.84%
Net interest margin    3.99%     3.98%
              
(1) Fully taxable equivalent ("FTE") basis based on the federal statutory rate of 35%
(2) Nonaccrual loans are included in average balances; however, no related interest income is recorded during the period of nonaccrual.
              


AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
              
   Year Ended December 31,
   2016
 2015
   Average    Average Yield/ Average    Average Yield/
(Amounts in thousands)Balance Interest(1) Rate(1) Balance Interest(1) Rate(1)
Assets           
Earning assets           
 Loans(2)$1,793,618 $87,848 4.90% $1,680,021 $87,768 5.22%
 Securities available for sale 287,332  8,047 2.80%  363,359  9,575 2.64%
 Securities held to maturity 71,069  757 1.07%  70,987  770 1.08%
 Interest-bearing deposits 18,864  153 0.81%  98,639  267 0.27%
Total earning assets 2,170,883  96,805 4.46%  2,213,006  98,380 4.44%
Other assets 284,575      307,928    
Total assets$2,455,458     $2,520,934    
              
Liabilities and stockholders' equity           
Interest-bearing deposits           
 Demand deposits$342,169 $250 0.07% $343,036 $203 0.06%
 Savings deposits 531,050  248 0.05%  532,221  367 0.07%
 Time deposits 525,162  3,981 0.76%  631,654  5,308 0.84%
Total interest-bearing deposits 1,398,381  4,479 0.32%  1,506,911  5,878 0.39%
Borrowings           
 Federal funds purchased 4,058  26 0.64%  535  2 0.37%
 Retail repurchase agreements 68,701  49 0.07%  71,262  68 0.10%
 Wholesale repurchase agreements 49,727  1,874 3.77%  50,000  1,878 3.76%
 FHLB advances and other borrowings 116,602  3,416 2.93%  89,400  3,523 3.94%
Total borrowings 239,088  5,365 2.24%  211,197  5,471 2.59%
Total interest-bearing liabilities 1,637,469  9,844 0.60%  1,718,108  11,349 0.66%
Noninterest-bearing demand deposits 456,474      433,936    
Other liabilities 23,040      20,691    
Total liabilities 2,116,983      2,172,735    
Stockholders' equity 338,475      348,199    
Total liabilities and stockholders' equity$2,455,458     $2,520,934    
Net interest income, FTE  $86,961     $87,031  
Net interest rate spread    3.86%     3.78%
Net interest margin    4.01%     3.93%
              
(1) Fully taxable equivalent ("FTE") basis based on the federal statutory rate of 35%
(2) Nonaccrual loans are included in average balances; however, no related interest income is recorded during the period of nonaccrual.
              


RECONCILIATION OF GAAP NET INTEREST MARGIN TO NON-GAAP NORMALIZED NET INTEREST MARGIN (Unaudited)
          
   Three Months Ended December 31,
   2016  2015
(Amounts in thousands)Interest(1) Average Yield/
Rate(1) 		 Interest(1) Average Yield/
Rate(1) 
Earning assets       
Loans(2)$22,012 4.74% $21,661 5.07%
 Accretion income 1,506    2,493  
 Less: cash accretion income 633    824  
 Non-cash accretion income 873    1,669  
Loans, normalized(3) 21,139 4.55%  19,992 4.68%
Other earning assets 1,924 2.59%  2,564 2.17%
Total earning assets 23,063 4.28%  22,556 4.13%
Total interest-bearing liabilities 2,459 0.61%  2,502 0.60%
Net interest income, FTE(3)$20,604   $20,054  
Net interest rate spread, normalized(3)  3.67%   3.53%
Net interest margin, normalized(3)  3.83%   3.68%
          
(1) FTE basis based on the federal statutory rate of 35%
(2) Nonaccrual loans are included in average balances; however, no related interest income is recorded during the period of nonaccrual.
(3) Normalized totals are non-GAAP financial measures that exclude non-cash loan interest accretion related to PCI loans.
          
   Year Ended December 31,
   2016
 2015
(Amounts in thousands)Interest(1) Average Yield/
Rate(1) 		 Interest(1) Average Yield/
Rate(1) 
Earning assets       
Loans(2)$87,848 4.90% $87,768 5.22%
 Accretion income 7,690    11,258  
 Less: cash accretion income 2,924    4,149  
 Non-cash accretion income 4,766    7,109  
Loans, normalized(3) 83,082 4.63%  80,659 4.80%
Other earning assets 8,957 2.37%  10,612 1.99%
Total earning assets 92,039 4.24%  91,271 4.12%
Total interest-bearing liabilities 9,844 0.60%  11,349 0.66%
Net interest income, FTE(3)$82,195   $79,922  
Net interest rate spread, normalized(3)  3.64%   3.46%
Net interest margin, normalized(3)  3.79%   3.61%
          
(1) FTE basis based on the federal statutory rate of 35%
(2) Nonaccrual loans are included in average balances; however, no related interest income is recorded during the period of nonaccrual.
(3) Normalized totals are non-GAAP financial measures that exclude non-cash loan interest accretion related to PCI loans.
          

Noninterest Income and Expense

CONDENSED QUARTERLY STATEMENTS OF INCOME (Unaudited)
               
  Three Months Ended Year Ended
  December 31, September 30, June 30, March 31, December 31, December 31,
(Amounts in thousands) 2016   2016   2016   2016   2015   2016   2015 
Noninterest income             
 Wealth management$681  $653  $810  $684  $744  $2,828  $2,975 
 Service charges on deposits 3,442   3,494   3,361   3,291   3,563   13,588   13,717 
 Other service charges and fees 2,014   2,024   2,054   2,010   2,058   8,102   8,045 
 Insurance commissions 59   1,592   1,600   2,191   1,563   5,442   6,899 
 Net impairment losses recognized in earnings -   (4,635)  (11)  -   -   (4,646)  - 
 Net gain (loss) on sale of securities 388   25   (79)  1   (7)  335   144 
 Net FDIC indemnification asset amortization (1,618)  (1,369)  (1,328)  (1,159)  (1,200)  (5,474)  (6,379)
 Net gain on divestitures 619   3,065   -   -   -   3,684   - 
 Other operating income 653   1,046   623   885   762   3,207   4,129 
Total noninterest income 6,238   5,895   7,030   7,903   7,483   27,066   29,530 
Noninterest expense             
 Salaries and employee benefits 9,411   9,828   10,198   10,475   10,268   39,912   39,625 
 Occupancy expense 1,158   1,249   1,359   1,531   1,413   5,297   5,817 
 Furniture and equipment expense 1,070   1,066   1,109   1,096   1,345   4,341   5,199 
 Amortization of intangibles 265   316   277   278   281   1,136   1,118 
 FDIC premiums and assessments 274   363   372   374   332   1,383   1,513 
 FHLB debt prepayment fees -   -   -   -   -   -   1,702 
 Merger, acquisition, and divestiture expense 55   226   410   39   -   730   86 
 Other operating expense 4,420   5,509   4,997   5,021   5,444   19,947   21,111 
Total noninterest expense 16,653   18,557   18,722   18,814   19,083   72,746   76,171 
               

Efficiency Ratio

EFFICIENCY RATIO CALCULATION (Unaudited)
                
   Three Months Ended Year Ended
   December 31, September 30, June 30, March 31, December 31, December 31,
    2016   2016   2016   2016   2015   2016   2015 
(Amounts in thousands)             
Noninterest expense, GAAP$16,653  $18,557  $18,722  $18,814  $19,083  $72,746  $76,171 
Non-GAAP adjustments             
 Merger, acquisition, and divestiture expense (55)  (226)  (410)  (39)  -   (730)  (86)
 FHLB debt prepayment fees -   -   -   -   -   -   (1,702)
 OREO expense and net loss (184)  (278)  (247)  (711)  (475)  (1,420)  (2,438)
 Goodwill impairment -   -   -   -   -   -   - 
 Other non-core items 8   (168)  (30)  (174)  (61)  (364)  (259)
Adjusted noninterest expense 16,422   17,885   18,035   17,890   18,547   70,232   71,686 
                
Net interest income, GAAP 20,957   21,121   21,691   21,111   21,175   84,880   84,753 
Noninterest income, GAAP 6,238   5,895   7,030   7,903   7,483   27,066   29,530 
Non-GAAP adjustments             
 Tax equivalency adjustment 520   509   521   531   548   2,081   2,950 
 Net impairment losses -   4,635   11   -   -   4,646   - 
 Net (gain) loss on sale of securities (388)  (25)  79   (1)  7   (335)  (144)
 Net gain on divestitures (619)  (3,065)  -   -   -   (3,684)  - 
 Other non-core items (40)  (432)  (30)  (414)  (30)  (916)  (1,263)
Adjusted net interest and noninterest income 26,668   28,638   29,302   29,130   29,183   113,738   115,826 
                
Non-GAAP efficiency ratio(1) 61.58%  62.45%  61.55%  61.41%  63.55%  61.75%  61.89%
GAAP efficiency ratio 61.24%  68.69%  65.19%  64.84%  66.59%  64.98%  66.65%
                
(1) A non-GAAP financial measure computed by dividing adjusted noninterest expense by the sum of tax equivalent net interest income and adjusted noninterest income
                

Balance Sheet and Capital

CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited)
            
   December 31, September 30, June 30, March 31, December 31,
(Amounts in thousands, except per share data) 2016   2016   2016   2016   2015 
Assets         
Total cash and cash equivalents$76,307  $65,929  $44,301  $39,587  $51,787 
Securities available for sale 165,579   220,856   322,699   338,469   366,173 
Securities held to maturity 47,133   72,182   72,239   72,485   72,541 
Loans held for investment, net of unearned income         
 Non-covered 1,795,954   1,774,547   1,733,398   1,685,891   1,623,506 
 Covered 56,994   61,837   68,585   76,538   83,035 
 Less allowance for loan losses (17,948)  (19,633)  (21,099)  (20,467)  (20,233)
Loans held for investment, net 1,835,000   1,816,751   1,780,884   1,741,962   1,686,308 
FDIC indemnification asset 12,173   14,332   16,431   18,787   20,844 
Premises and equipment, net 50,085   50,564   50,199   50,799   52,756 
Other real estate owned, non-covered 5,109   4,052   4,187   5,313   4,873 
Other real estate owned, covered 276   2,437   2,017   2,279   4,034 
Interest receivable 5,553   5,498   6,115   5,968   6,007 
Goodwill 95,779   101,776   100,486   100,486   100,486 
Other intangible assets 7,207   7,964   4,688   4,965   5,243 
Other assets 86,197   87,932   91,082   89,187   91,224 
Total assets$2,386,398  $2,450,273  $2,495,328  $2,470,287  $2,462,276 
            
Liabilities         
Deposits         
 Noninterest-bearing$427,705  $473,509  $451,003  $453,336  $451,511 
 Interest-bearing 1,413,633   1,388,390   1,373,412   1,421,329   1,421,748 
Total deposits 1,841,338   1,861,899   1,824,415   1,874,665   1,873,259 
Interest, taxes, and other liabilities 27,290   26,599   25,553   24,576   26,630 
Federal funds purchased -   -   42,000   18,000   - 
Securities sold under agreements to repurchase 98,005   118,532   113,392   134,661   138,614 
FHLB borrowings 65,000   90,000   140,000   65,000   65,000 
Other borrowings 15,708   15,707   15,756   15,756   15,756 
Total liabilities 2,047,341   2,112,737   2,161,116   2,132,658   2,119,259 
            
Stockholders' equity         
Common stock 21,382   21,382   21,382   21,382   21,382 
Additional paid-in capital 228,142   227,884   227,791   227,725   227,692 
Retained earnings 170,377   166,689   163,030   159,223   155,647 
Treasury stock, at cost (78,833)  (78,789)  (74,974)  (64,968)  (56,457)
Accumulated other comprehensive (loss) income (2,011)  370   (3,017)  (5,733)  (5,247)
Total stockholders' equity 339,057   337,536   334,212   337,629   343,017 
Total liabilities and stockholders' equity$2,386,398  $2,450,273  $2,495,328  $2,470,287  $2,462,276 
            
Shares outstanding at period-end 16,994,208   16,988,972   17,155,322   17,631,011   18,098,141 
Book value per common share(1)$19.95  $19.87  $19.48  $19.15  $18.95 
Tangible book value per common share(2) 13.89   13.41   13.35   13.17   13.11 
            
(1) Stockholders' equity divided by as-converted common shares outstanding
(2) A non-GAAP financial measure defined as stockholders’ equity less goodwill and other intangibles, divided by as-converted common shares outstanding
            

Asset Quality

SELECTED CREDIT QUALITY INFORMATION (Unaudited)
            
   December 31, September 30, June 30, March 31, December 31,
(Amounts in thousands) 2016   2016   2016   2016   2015 
Allowance for Loan Losses          
Beginning balance$19,633  $21,099  $20,467  $20,233  $20,127 
(Recovery of) provision for loan losses charged         
 to operations 500   (1,154)  722   1,187   434 
(Recovery of) provision for loan losses recorded         
 through the FDIC indemnification asset -   -   (10)  9   - 
Charge-offs (2,485)  (772)  (691)  (1,228)  (805)
Recoveries 300   460   611   266   477 
Net charge-offs (2,185)  (312)  (80)  (962)  (328)
Ending balance$17,948  $19,633  $21,099  $20,467  $20,233 
            
Nonperforming Assets         
Non-covered nonperforming assets         
Nonaccrual loans$15,854  $17,487  $16,626  $16,196  $17,847 
Accruing loans past due 90 days or more -   62   64   243   - 
Troubled debt restructurings ("TDRs")(1) 114   115   115   158   73 
Total non-covered nonperforming loans 15,968   17,664   16,805   16,597   17,920 
OREO 5,109   4,052   4,187   5,313   4,873 
Total non-covered nonperforming assets$21,077  $21,716  $20,992  $21,910  $22,793 
            
Covered nonperforming assets         
Nonaccrual loans$608  $688  $680  $1,955  $647 
Total covered nonperforming loans 608   688   680   1,955   647 
OREO 276   2,437   2,017   2,279   4,034 
Total covered nonperforming assets$884  $3,125  $2,697  $4,234  $4,681 
            
Additional Information         
Performing TDRs(2)$12,838  $13,336  $13,562  $13,474  $13,889 
Total TDRs(3) 12,952   13,451   13,677   13,632   13,962 
            
Non-covered ratios         
Nonperforming loans to total loans 0.89%  1.00%  0.97%  0.98%  1.10%
Nonperforming assets to total assets 0.90%  0.91%  0.87%  0.92%  0.96%
Non-PCI allowance to nonperforming loans 112.32%  111.08%  125.48%  123.17%  112.61%
Non-PCI allowance to total loans 1.00%  1.11%  1.22%  1.21%  1.24%
Annualized net charge-offs to average loans 0.49%  0.07%  0.02%  0.23%  0.08%
            
Total ratios         
Nonperforming loans to total loans 0.89%  1.00%  0.97%  1.05%  1.09%
Nonperforming assets to total assets 0.92%  1.01%  0.95%  1.06%  1.12%
Allowance for loan losses to nonperforming loans 108.28%  106.98%  120.67%  110.32%  108.97%
Allowance for loan losses to total loans 0.97%  1.07%  1.17%  1.16%  1.19%
Annualized net charge-offs to average loans 0.47%  0.07%  0.02%  0.22%  0.08%
            
(1) Accruing TDRs restructured within the past six months or nonperforming
(2) Accruing TDRs with six months or more of satisfactory payment performance
(3) Accruing total TDRs
            



            








        

            

                

                    
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