BLUEFIELD, Va., Feb. 1, 2013 (GLOBE NEWSWIRE) -- First Community Bancshares, Inc. (Nasdaq:FCBC) (www.fcbinc.com) (the "Company") today reported net income for the quarter and twelve months ended December 31, 2012, of $8.44 million and $28.58 million, respectively. Net income available to common shareholders totaled $8.17 million, or $0.39 per diluted common share, for the quarter ended December 31, 2012. Net income available to common shareholders totaled $27.52 million, or $1.40 per diluted common share, for the twelve months ended December 31, 2012. Net income for the quarter and twelve months ended December 31, 2012, was impacted by $857 thousand and $5.08 million, respectively, in merger related expenses. Excluding nonrecurring income and expense items, core earnings for the quarter and twelve months ended December 31, 2012, totaled $8.78 million and $30.47 million, respectively.
On January 22, 2013, the Company announced that the board of directors declared a quarterly cash dividend to common shareholders of twelve cents ($0.12) per common share. The quarterly dividend is payable to common shareholders of record on February 8, 2013, and is expected to be paid on or about February 22, 2013. The current dividend represents an increase of 20% over the dividend paid during the same quarter of 2012. The current year marks the 28th consecutive year of cash dividends to shareholders.
Fourth Quarter 2012 Highlights –
- Core earnings were $8.78 million for the fourth quarter of 2012, an increase of $3.82 million, or 77.04%, compared with the fourth quarter of 2011.
- Core return on average assets was 1.28% and core return on average tangible common equity was 15.10% for the fourth quarter of 2012.
- Core return on average assets was 1.21% and core return on average tangible common equity was 13.95% for the year ended December 31, 2012.
- Loans held for investment increased $328.38 million, or 23.52%, compared with the fourth quarter of 2012.
- The tax equivalent net interest margin increased 56 basis points to 4.49% for the fourth quarter of 2012 compared with the fourth quarter of 2011.
- Net interest income was $26.14 million, an increase of $7.87 million, or 43.09%, compared with fourth quarter 2011.
- Cash dividends paid per common share increased 7.5% for the year ended December 31, 2012, compared with the year ended December 31, 2011.
Net Interest Income
Net interest income increased $7.87 million, or 43.09%, to $26.14 million for the fourth quarter of 2012 compared with the fourth quarter of 2011. The tax equivalent net interest margin increased 56 basis points to 4.49% for the fourth quarter of 2012 compared with 3.93% for the fourth quarter of 2011. Total interest income increased $8.06 million, or 34.72%, to $31.26 million for the fourth quarter of 2012 compared with the fourth quarter of 2011. The increase reflects the increases in loan portfolio balances from the acquisitions of Peoples Bank of Virginia ("Peoples") and Waccamaw Bank ("Waccamaw") during the second quarter of 2012. The tax equivalent yield on loans increased to 6.43% while the average loan balance increased $352.93 million, or 25.34%, to $1.75 billion for the fourth quarter of 2012 compared with the fourth quarter of 2011.
Total interest expense increased $185 thousand, or 3.75%, to $5.12 million for the fourth quarter of 2012 compared with the fourth quarter of 2011. Deposit costs decreased $33 thousand, or 1.25%, to $2.60 million for the fourth quarter of 2012 compared with the fourth quarter of 2011, which was primarily due to an 18 basis point decrease in the average rate paid on interest-bearing deposits. Borrowing costs increased $218 thousand, or 9.49%, to $2.52 million for the fourth quarter of 2012 compared with the fourth quarter of 2011. The average rate paid on interest-bearing liabilities decreased 20 basis points to 1.01% for the fourth quarter of 2012 compared with the fourth quarter of 2011. The average balance of interest-bearing liabilities increased $399.15 million, or 24.71%, to $2.01 billion for the fourth quarter of 2012 compared with the fourth quarter of 2011, which included a $379.81 million increase in average interest-bearing deposits and a $19.34 million increase in average total borrowings. The increases were primarily the result of the Peoples and Waccamaw acquisitions that occurred during the second quarter of 2012.
Provision for Loan Losses
The provision for loan losses for the fourth quarter of 2012 decreased $1.22 million, or 49.92%, to $1.22 million, compared with the same period of the prior year. Provision for the twelve months of 2012 decreased $3.37 million, or 37.24%, to $5.68 million, compared with the same period of the prior year. The fourth quarter of 2012 marks the ninth consecutive quarter of provision decreases when compared to the prior year's comparable quarter.
Noninterest Income
Noninterest income increased $1.64 million, or 24.84%, to $8.25 million for the fourth quarter of 2012 compared with the fourth quarter of 2011. The Company realized a $316 thousand net gain on sale of securities for the fourth quarter of 2012, which was an increase of $290 thousand, or 11.15%, compared to the fourth quarter of 2011. Wealth management revenues increased $44 thousand, or 5.38%, for the fourth quarter of 2012 compared with the fourth quarter of 2011. The Trust and Wealth Management Divisions reported $876 million in assets under management as of December 31, 2012. Service charges on deposit accounts increased $376 thousand, or 10.90%, for the fourth quarter of 2012 compared with the fourth quarter of 2011, which are attributable to the addition of Waccamaw. Insurance commissions increased $45 thousand, or 3.85%, to $1.22 million for the fourth quarter of 2012 compared with the same quarter of 2011. The Company incurred no other-than-temporary impairment charges for the fourth quarter of 2012 compared to $1.55 million recorded for the fourth quarter of 2011.
Noninterest Expense
Noninterest expense increased $3.71 million, or 21.77%, to $20.77 million for the fourth quarter of 2012 compared with the fourth quarter of 2011, due largely to the Peoples and Waccamaw acquisitions. Salaries and employee benefits increased $2.79 million, or 35.30%, to $10.69 million for the fourth quarter of 2012 compared with the fourth quarter of 2011. The Peoples and Waccamaw acquisitions accounted for an increase in salaries and employee benefits of $665 thousand and $1.22 million, respectively, during the fourth quarter of 2012. Occupancy, furniture, and equipment expense increased $949 thousand, or 39.66%, to $3.34 million for the fourth quarter of 2012 compared with the fourth quarter of 2011. During the fourth quarter of 2012, the Company incurred merger related expenses of $857 thousand in connection with the acquisition of Peoples and Waccamaw. Other operating expense increased $446 thousand, or 9.06%, to $5.37 million for the fourth quarter of 2012 compared with the fourth quarter of 2011. Other operating expense included a net loss on sales and expenses associated with other real estate owned of $312 thousand for the fourth quarter of 2012 compared to $455 thousand for the fourth quarter of 2011. The efficiency ratio for the fourth quarter of 2012 was 56.38% compared to 56.73% for the fourth quarter of 2011.
Allowance for Loan Losses and Credit Quality on Non-covered Loans
Non-covered loans and other real estate owned are those assets not covered by the loss share agreement between the FDIC and the Bank in relation to the acquisition of Waccamaw. The allowance for loan losses on non-covered loans decreased to $25.77 million at December 31, 2012, compared with $26.21 million at December 31, 2011. The allowance for loan losses for non-covered loans as a percentage of non-covered loans decreased to 1.70% at December 31, 2012, compared with 1.88% at December 31, 2011. The decrease in the ratio of allowance for loan losses for non-covered loans as a percentage of non-covered loans for the fourth quarter of 2012 was impacted by loans marked to fair value as part of the Peoples' acquisition. For the fourth quarter of 2012, net charge-offs decreased $1.35 million, or 51.29%, compared with the fourth quarter of 2011. Annualized net charge-offs as a percentage of average non-covered loans were 0.33% for the fourth quarter of 2012, which represents a decrease compared with 0.76% for the fourth quarter of 2011.
Non-covered delinquent loans, comprised of loans 30 days or more past due and nonaccrual loans, as a percentage of total non-covered loans measured 2.57% at December 31, 2012, compared to 2.63% for the same period of the prior year. Non-covered nonaccrual loans decreased to $23.93 million at December 31, 2012, compared with $24.49 million at December 31, 2011. At quarter end, the Company's non-covered nonperforming loans as a percentage of total non-covered loans were 1.89% and non-covered nonperforming assets as a percentage of total non-covered assets were 1.37%, down from 1.43% for the same period of the prior year. Nonperforming assets included $4.73 million in unseasoned, accruing troubled debt restructurings and $9.00 million in other real estate owned, of which $3.26 million was covered under the loss share agreement, at December 31, 2012.
Balance Sheet and Capital
Consolidated assets totaled $2.73 billion as of December 31, 2012, an increase of $566.31 million, or 26.16%, compared with $2.16 billion at December 31, 2011. Consolidated liabilities totaled $2.37 billion as of December 31, 2012, an increase of $515.56 million, or 27.73%, compared with $1.86 billion at December 31, 2011. Total stockholders' equity increased to $356.47 million as of December 31, 2012, compared with $305.73 million at December 31, 2011. Book value per as-converted common share increased to $16.80 for the quarter ended December 31, 2012, compared with $15.96 for the quarter ended December 31, 2011. Tangible book value per common share increased $0.19 to $11.59 compared with the fourth quarter of 2011. During the fourth quarter of 2012, the Company paid a cash dividend of $0.11 per common share.
The Company significantly exceeds regulatory "well capitalized" targets as of December 31, 2012, with a total risk-based capital ratio of 16.6%, Tier 1 risk-based capital ratio of 15.4%, and a Tier 1 leverage ratio of 9.9%.
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 our operational performance.
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 and intangible impairment; 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 adjusted noninterest expense by the sum of tax equivalent net interest income and adjusted noninterest income. 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 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.
Tangible book value per common share is a non-GAAP financial measure that is defined as stockholders' equity less goodwill and other intangibles, divided by as-converted common shares outstanding. Average tangible common equity is a non-GAAP financial measure that is defined as average stockholders' equity less average goodwill, other intangibles, and the preferred liquidation preference.
Investor Relations
The Company will host an investor and media teleconference and webcast on Friday, February 1, 2013, 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 fourth 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.
About First Community Bancshares, Inc.
First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a $2.73 billion financial holding company and the parent company of First Community Bank. First Community Bank operates seventy-two banking locations throughout Virginia, West Virginia, North Carolina, South Carolina, and Tennessee. First Community Bank offers wealth management and investment services through its Trust 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 $876 million as of December 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 December 31, |
Year Ended December 31, |
|||
| (Amounts in thousands, except share and per share data) | 2012 | 2011 | 2012 | 2011 |
| Interest income | ||||
| Interest and fees on loans held for investment | $ 28,188 | $ 19,947 | $ 96,684 | $ 80,580 |
| Interest on securities --- taxable | 1,770 | 2,023 | 7,830 | 8,117 |
| Interest on securities --- nontaxable | 1,216 | 1,190 | 4,883 | 5,194 |
| Interest on deposits in banks | 82 | 41 | 259 | 285 |
| Total interest income | 31,256 | 23,201 | 109,656 | 94,176 |
| Interest expense | ||||
| Interest on deposits | 2,604 | 2,637 | 9,972 | 12,788 |
| Interest on short-term borrowings | 656 | 603 | 2,515 | 2,475 |
| Interest on long-term borrowings | 1,860 | 1,695 | 7,113 | 6,884 |
| Total interest expense | 5,120 | 4,935 | 19,600 | 22,147 |
| Net interest income | 26,136 | 18,266 | 90,056 | 72,029 |
| Provision for loan losses | 1,220 | 2,436 | 5,678 | 9,047 |
| Net interest income after provision for loan losses | 24,916 | 15,830 | 84,378 | 62,982 |
| Noninterest income | ||||
| Wealth management income | 862 | 818 | 3,701 | 3,510 |
| Service charges on deposit accounts | 3,826 | 3,450 | 14,063 | 13,238 |
| Other service charges and fees | 1,682 | 1,429 | 6,462 | 5,722 |
| Insurance commissions | 1,215 | 1,170 | 5,743 | 6,197 |
| Net impairment losses recognized in earnings | -- | (1,548) | (942) | (2,285) |
| Net gain on sale of securities | 316 | 26 | 586 | 5,264 |
| Other operating income | 346 | 1,261 | 6,131 | 3,888 |
| Total noninterest income | 8,247 | 6,606 | 35,744 | 35,534 |
| Noninterest expense | ||||
| Salaries and employee benefits | 10,693 | 7,903 | 38,667 | 34,126 |
| Occupancy expense of bank premises | 1,938 | 1,589 | 6,872 | 6,280 |
| Furniture and equipment | 1,404 | 804 | 4,145 | 3,490 |
| Amortization of intangible assets | 191 | 250 | 804 | 1,020 |
| FDIC premiums and assessments | 313 | 344 | 1,536 | 1,984 |
| FHLB debt prepayment fees | -- | -- | -- | 471 |
| Merger related expense | 857 | -- | 5,084 | -- |
| Goodwill impairment | -- | 1,239 | -- | 1,239 |
| Other operating expense | 5,371 | 4,925 | 20,309 | 20,305 |
| Total noninterest expense | 20,767 | 17,054 | 77,417 | 68,915 |
| Income before income taxes | 12,396 | 5,382 | 42,705 | 29,601 |
| Income tax expense | 3,957 | 2,151 | 14,128 | 9,573 |
| Net income | 8,439 | 3,231 | 28,577 | 20,028 |
| Dividends on preferred stock | 272 | 286 | 1,058 | 703 |
| Net income available to common shareholders | $ 8,167 | $ 2,945 | $ 27,519 | $ 19,325 |
| Basic earnings per common share | $ 0.41 | $ 0.16 | $ 1.44 | $ 1.08 |
| Diluted earnings per common share | $ 0.39 | $ 0.17 | $ 1.40 | $ 1.07 |
| Cash dividends per common share | $ 0.11 | $ 0.10 | $ 0.43 | $ 0.40 |
| Weighted average basic shares outstanding | 20,058,998 | 17,849,286 | 19,125,839 | 17,877,421 |
| Weighted average diluted shares outstanding | 21,373,669 | 19,159,090 | 20,480,172 | 18,691,081 |
| Return on average assets | 1.19% | 0.54% | 1.10% | 0.88% |
| Return on average common equity | 9.59% | 4.06% | 8.70% | 6.81% |
| FIRST COMMUNITY BANCSHARES, INC. | |||||
| CONDENSED QUARTERLY STATEMENTS OF INCOME (Unaudited) | |||||
| As of and for the Quarter Ended | |||||
| (Amounts in thousands, except share and per share data) |
December 31, 2012 |
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
| Interest Income | |||||
| Interest and fees on loans held for investment | $ 28,188 | $ 28,275 | $ 20,853 | $ 19,368 | $ 19,947 |
| Interest on securities --- taxable | 1,770 | 1,980 | 2,001 | 2,079 | 2,023 |
| Interest on securities --- nontaxable | 1,216 | 1,215 | 1,256 | 1,196 | 1,190 |
| Interest on deposits in banks | 82 | 66 | 72 | 39 | 41 |
| Total interest income | 31,256 | 31,536 | 24,182 | 22,682 | 23,201 |
| Interest Expense | |||||
| Interest on deposits | 2,604 | 2,603 | 2,360 | 2,405 | 2,637 |
| Interest on short-term borrowings | 656 | 675 | 589 | 595 | 592 |
| Interest on long-term borrowings | 1,860 | 1,799 | 1,749 | 1,705 | 1,706 |
| Total interest expense | 5,120 | 5,077 | 4,698 | 4,705 | 4,935 |
| Net interest income | 26,136 | 26,459 | 19,484 | 17,977 | 18,266 |
| Provision for loan losses | 1,220 | 1,916 | 1,620 | 922 | 2,436 |
| Net interest income after provision for loan losses | 24,916 | 24,543 | 17,864 | 17,055 | 15,830 |
| Noninterest Income | |||||
| Wealth management income | 862 | 1,005 | 940 | 894 | 818 |
| Service charges on deposit accounts | 3,826 | 3,895 | 3,329 | 3,013 | 3,450 |
| Other service charges and fees | 1,682 | 1,631 | 1,564 | 1,585 | 1,429 |
| Insurance commissions | 1,215 | 1,616 | 1,336 | 1,576 | 1,170 |
| Net impairment losses recognized in earnings | -- | (942) | -- | -- | (1,548) |
| Net gain (loss) on sale of securities | 316 | 228 | (9) | 51 | 26 |
| Other operating income | 346 | 3,730 | 1,183 | 872 | 1,261 |
| Total noninterest income | 8,247 | 11,163 | 8,343 | 7,991 | 6,606 |
| Noninterest Expense | |||||
| Salaries and employee benefits | 10,693 | 10,860 | 8,892 | 8,222 | 7,903 |
| Occupancy expense of bank premises | 1,938 | 1,754 | 1,654 | 1,526 | 1,589 |
| Furniture and equipment | 1,404 | 955 | 975 | 811 | 804 |
| Amortization of intangible assets | 191 | 191 | 189 | 233 | 250 |
| FDIC premiums and assessments | 313 | 611 | 290 | 322 | 344 |
| Merger related expense | 857 | 645 | 3,419 | 163 | -- |
| Goodwill impairment | -- | -- | -- | -- | 1,239 |
| Other operating expense | 5,371 | 5,309 | 4,713 | 4,916 | 4,925 |
| Total noninterest expense | 20,767 | 20,325 | 20,132 | 16,193 | 17,054 |
| Income before income taxes | 12,396 | 15,381 | 6,075 | 8,853 | 5,382 |
| Income tax expense | 3,958 | 5,322 | 1,997 | 2,852 | 2,151 |
| Net income | 8,438 | 10,059 | 4,078 | 6,001 | 3,231 |
| Dividends on preferred stock | 272 | 220 | 283 | 283 | 286 |
| Net income available to common shareholders | $ 8,166 | $ 9,839 | $ 3,795 | $ 5,718 | $ 2,945 |
| Basic earnings per common share | $ 0.41 | $ 0.49 | $ 0.20 | $ 0.32 | $ 0.16 |
| Diluted earnings per common share | $ 0.39 | $ 0.47 | $ 0.20 | $ 0.31 | $ 0.17 |
| Cash dividends per common share | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.10 | $ 0.10 |
| Weighted average basic shares outstanding | 20,058,998 | 20,013,264 | 18,561,714 | 17,849,376 | 17,849,286 |
| Weighted average diluted shares outstanding | 21,373,669 | 21,476,497 | 19,909,242 | 19,189,923 | 19,159,090 |
| FIRST COMMUNITY BANCSHARES, INC. | ||||
| RECONCILIATION OF GAAP NET INCOME TO CORE EARNINGS (Unaudited) | ||||
|
Three Months Ended December 31, |
Year Ended December 31, |
|||
| 2012 | 2011 | 2012 | 2011 | |
| (Amounts in thousands, except per share data) | ||||
| Net income, GAAP | $ 8,439 | $ 3,231 | $ 28,577 | $ 20,028 |
| Non-GAAP adjustments: | ||||
| Net impairment losses recognized in earnings | -- | 1,548 | 942 | 2,285 |
| Net gain on sale of securities | (316) | (26) | (586) | (5,264) |
| FHLB debt prepayment fees | -- | -- | -- | 471 |
| Merger related expense | 857 | -- | 5,084 | -- |
| Goodwill impairment | -- | 1,239 | -- | 1,239 |
| Prospective correction of prior period understatement | -- | -- | (2,395) | -- |
| Other noncore, nonrecurring items | -- | -- | -- | 59 |
| Total adjustments to core earnings | 541 | 2,761 | 3,045 | (1,210) |
| Tax effect | 204 | 1,035 | 1,151 | (454) |
| Core earnings, non-GAAP | $ 8,776 | $ 4,957 | $ 30,471 | $ 19,272 |
| Core return on average assets | 1.28% | 0.91% | 1.21% | 0.88% |
| Core return on average common equity | 10.30% | 6.83% | 9.63% | 6.79% |
| Core return on average tangible common equity | 15.10% | 9.85% | 13.95% | 9.92% |
| Core diluted earnings per common share | $0.41 | $0.26 | $1.49 | $1.03 |
| FIRST COMMUNITY BANCSHARES, INC. | ||||
| EFFICIENCY RATIO CALCULATION (Unaudited) | ||||
|
Three Months Ended December 31, |
Year Ended December 31, |
|||
| 2012 | 2011 | 2012 | 2011 | |
| (Amounts in thousands) | ||||
| Noninterest expense, GAAP | $ 20,767 | $ 17,054 | $ 77,417 | $ 68,915 |
| Non-GAAP adjustments: | ||||
| FHLB debt prepayment fees | -- | -- | -- | (471) |
| Merger related expenses | (857) | -- | (5,084) | -- |
| Goodwill impairment | -- | (1,239) | -- | (1,239) |
| OREO expense and net loss | (312) | (455) | (1,893) | (3,081) |
| Other noncore, nonreccuring items | -- | -- | -- | (77) |
| Adjusted noninterest expense | 19,598 | 15,360 | 70,440 | 64,047 |
| Net interest income, GAAP | 26,136 | 18,266 | 90,056 | 72,029 |
| Noninterest income, GAAP | 8,247 | 6,606 | 35,744 | 35,534 |
| Non-GAAP adjustments: | ||||
| Tax equivalency adjustment | 696 | 681 | 2,747 | 2,959 |
| Net impairment losses recognized in earnings | -- | 1,548 | 942 | 2,285 |
| Net gain on sale of securities | (316) | (26) | (586) | (5,264) |
| Prospective correction of prior period understatement | -- | -- | (2,395) | -- |
| Other noncore, nonreccuring items | -- | -- | -- | (18) |
| Adjusted net interest and noninterest income | 34,763 | 27,075 | 126,508 | 107,525 |
| Efficiency Ratio | 56.38% | 56.73% | 55.68% | 59.56% |
| FIRST COMMUNITY BANCSHARES, INC. | |||||||
| CONDENSED QUARTERLY BALANCE SHEETS (Unaudited) | |||||||
| For the Quarter Ended | |||||||
|
December 31, 2012 |
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
|||
| (Amounts in thousands) | |||||||
| Cash and due from banks | $ 50,405 | $ 44,865 | $ 54,494 | $ 36,555 | $ 34,578 | ||
| Federal funds sold | 66,509 | 93,005 | 64,815 | 61,328 | 1,909 | ||
| Interest-bearing deposits in banks | 27,933 | 27,359 | 36,856 | 11,729 | 10,807 | ||
| Total cash and cash equivalents | 144,847 | 165,229 | 156,165 | 109,612 | 47,294 | ||
| Securities available-for-sale | 534,358 | 517,161 | 526,607 | 478,352 | 482,430 | ||
| Securities held-to-maturity | 816 | 816 | 1,295 | 2,874 | 3,490 | ||
| Loans held for sale | 6,672 | 4,446 | 1,179 | 3,522 | 5,820 | ||
| Loans held for investment, net of unearned income: | |||||||
| Covered under loss share agreements | 207,869 | 221,977 | 238,777 | -- | -- | ||
| Not covered under loss share agreements | 1,516,574 | 1,541,633 | 1,568,312 | 1,386,525 | 1,396,067 | ||
| Less allowance for loan losses | 25,770 | 25,835 | 26,171 | 25,800 | 26,205 | ||
| Loans, net | 1,705,345 | 1,742,221 | 1,782,097 | 1,364,247 | 1,375,682 | ||
| FDIC receivable under loss share agreements | 48,073 | 49,477 | 52,067 | -- | -- | ||
| Property, plant, and equipment, net | 64,868 | 62,191 | 60,829 | 54,616 | 54,721 | ||
| Other real estate owned: | |||||||
| Covered under loss share agreements | 3,255 | 3,553 | 5,325 | -- | -- | ||
| Not covered under loss share agreements | 5,749 | 5,957 | 4,938 | 3,829 | 5,914 | ||
| Interest receivable | 5,864 | 6,038 | 8,396 | 5,886 | 6,193 | ||
| Goodwill | 107,054 | 104,022 | 99,402 | 83,056 | 83,056 | ||
| Intangible assets | 3,522 | 3,713 | 3,903 | 4,093 | 4,326 | ||
| Other assets | 107,346 | 109,272 | 109,297 | 96,704 | 101,683 | ||
| Total assets | $ 2,731,097 | $2,769,650 | $2,810,321 | $2,203,269 | $2,164,789 | ||
| Deposits: | |||||||
| Noninterest-bearing | $ 343,352 | $ 335,100 | $ 340,895 | $ 253,352 | $ 240,268 | ||
| Interest-bearing | 353,321 | 360,061 | 335,686 | 307,136 | 275,156 | ||
| Savings | 500,276 | 496,740 | 494,516 | 397,850 | 394,707 | ||
| Time | 833,226 | 872,059 | 934,110 | 621,412 | 633,336 | ||
| Total deposits | 2,030,175 | 2,063,960 | 2,105,207 | 1,579,750 | 1,543,467 | ||
| Interest, taxes, and other liabilities | 30,896 | 29,538 | 22,465 | 23,203 | 20,452 | ||
| Securities sold under agreements to repurchase | 136,118 | 146,904 | 148,367 | 124,266 | 129,208 | ||
| FHLB advances | 161,558 | 161,558 | 176,653 | 150,000 | 150,000 | ||
| Other borrowings | 15,877 | 15,877 | 15,918 | 15,925 | 15,933 | ||
| Total liabilities | 2,374,624 | 2,417,837 | 2,468,610 | 1,893,144 | 1,859,060 | ||
| Preferred stock | 17,421 | 17,921 | 18,921 | 18,921 | 18,921 | ||
| Common stock | 20,343 | 20,309 | 20,240 | 18,083 | 18,083 | ||
| Additional paid-in capital | 213,829 | 213,320 | 212,510 | 188,149 | 188,118 | ||
| Retained earnings | 113,013 | 107,055 | 99,418 | 97,588 | 93,656 | ||
| Treasury stock, at cost | (6,458) | (5,446) | (5,672) | (5,721) | (5,721) | ||
| Accumulated other comprehensive loss | (1,675) | (1,346) | (3,706) | (6,895) | (7,328) | ||
| Total stockholders' equity | 356,473 | 351,813 | 341,711 | 310,125 | 305,729 | ||
| Total liabilities and stockholders' equity | $ 2,731,097 | $ 2,769,650 | $ 2,810,321 | $ 2,203,269 | $ 2,164,789 | ||
| Shares outstanding at period end | 20,018,966 | 20,086,404 | 20,008,181 | 17,849,376 | 17,849,376 | ||
| Book value per common share at period end (1) | $ 16.80 | $ 16.50 | $ 16.03 | $ 16.19 | $ 15.96 | ||
| Tangible book value per common share at period end (2) | $ 11.59 | $ 11.45 | $ 11.19 | $ 11.64 | $ 11.40 | ||
| (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 | |||||
| (Amounts in thousands) |
December 31, 2012 |
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
| Allowance for Loan Losses on Non-covered Loans | |||||
| Beginning balance | $ 25,835 | $ 26,171 | $ 25,800 | $ 26,205 | $ 26,407 |
| Provision for loan losses | 1,220 | 1,916 | 1,620 | 922 | 2,436 |
| Charge-offs | (1,717) | (2,613) | (1,613) | (1,562) | (2,915) |
| Recoveries | 432 | 361 | 364 | 235 | 277 |
| Net charge-offs | (1,285) | (2,252) | (1,249) | (1,327) | (2,638) |
| Ending balance | $ 25,770 | $ 25,835 | $ 26,171 | $ 25,800 | $ 26,205 |
| Summary of Asset Quality | |||||
| Non-covered loans | |||||
| Nonaccrual loans | $ 23,931 | $ 26,514 | $ 27,947 | $ 24,617 | $ 24,487 |
| Accruing loans past due 90 days or more | -- | -- | -- | -- | -- |
| Troubled debt restructurings ("TDRs") (1) | 4,734 | 121 | 469 | 2,668 | 600 |
| Total non-covered nonperforming loans | 28,665 | 26,635 | 28,416 | 27,285 | 25,087 |
| Other real estate owned ("OREO") not covered under FDIC loss share agreements | 5,749 | 5,957 | 4,938 | 3,829 | 5,914 |
| Total non-covered nonperforming assets | $ 34,414 | $ 32,592 | $ 33,354 | $ 31,114 | $ 31,001 |
| Covered Loans | |||||
| Nonaccrual loans | $ 4,323 | $ 2,849 | $ -- | $ -- | $ -- |
| Accruing loans past due 90 days or more | -- | -- | -- | -- | -- |
| Total covered nonperforming loans | 4,323 | 2,849 | -- | -- | -- |
| OREO covered under FDIC loss share agreements | 3,255 | 3,553 | 5,325 | -- | -- |
| Total covered nonperforming assets | 7,578 | 6,402 | 5,325 | -- | -- |
| Total nonperforming assets | $ 41,992 | $ 38,994 | $ 38,679 | $ 31,114 | $ 31,001 |
| Performing TDRs (2) | $ 6,038 | $ 6,742 | $ 6,995 | $ 7,052 | $ 8,854 |
| Total TDRs (3) | $ 10,772 | $ 6,863 | $ 7,464 | $ 9,720 | $ 9,454 |
| Asset Quality Ratios | |||||
| Excluding covered assets | |||||
| Nonperforming loans to total loans | 1.89% | 1.73% | 1.81% | 1.97% | 1.80% |
| Nonperforming assets to total assets | 1.37% | 1.28% | 1.30% | 1.41% | 1.43% |
| Allowance for loan losses to nonperforming loans | 89.90% | 97.00% | 92.10% | 94.56% | 104.46% |
| Allowance for loan losses to non-covered total loans | 1.70% | 1.68% | 1.67% | 1.86% | 1.88% |
| Annualized net charge-offs to average loans | 0.33% | 0.57% | 0.38% | 0.38% | 0.76% |
| Including covered assets | |||||
| Nonperforming loans to total loans | 1.91% | 1.67% | 1.57% | 1.97% | 1.80% |
| Nonperforming assets to total assets | 1.54% | 1.41% | 1.38% | 1.41% | 1.43% |
| Allowance for loan losses to nonperforming loans | 78.12% | 87.62% | 92.10% | 94.56% | 104.46% |
| Allowance for loan losses to total loans | 1.49% | 1.46% | 1.45% | 1.86% | 1.88% |
| (1) Accruing TDRs restructured within the past six months | |||||
| (2) Accruing TDRs with six months or more of satisfactory payment performance | |||||
| (3) Accruing nonperforming and performing TDRs | |||||
| FIRST COMMUNITY BANCSHARES, INC. | |||||
| SELECTED FINANCIAL INFORMATION (Unaudited) | |||||
| As of and for the Quarter Ended | |||||
|
December 31, 2012 |
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
|
| Selected Ratios | |||||
| Return on average assets | 1.19% | 1.41% | 0.65% | 1.06% | 0.54% |
| Return on average common equity | 9.59% | 11.91% | 5.00% | 7.88% | 4.06% |
| Net interest margin | 4.49% | 4.48% | 3.93% | 3.91% | 3.93% |
| Efficiency ratio for the quarter | 56.38% | 55.49% | 57.58% | 57.18% | 56.73% |
| Efficiency ratio year-to-date | 55.68% | 52.40% | 57.38% | 57.18% | 59.56% |
| Total equity to total assets | 13.05% | 12.70% | 12.16% | 14.08% | 14.12% |
| Average earning assets to average assets | 86.87% | 87.02% | 87.68% | 88.24% | 88.27% |
| Average loans to average deposits | 85.71% | 87.88% | 88.57% | 89.85% | 89.45% |
| (Amounts in thousands) | |||||
| Average Balances | |||||
| Loans | $ 1,745,584 | $ 1,790,489 | $ 1,512,451 | $ 1,394,246 | $ 1,392,650 |
| Investment securities | 519,798 | 528,126 | 490,219 | 481,595 | 479,638 |
| Earning assets | 2,376,805 | 2,408,442 | 2,069,799 | 1,918,366 | 1,913,768 |
| Total assets | 2,736,037 | 2,767,790 | 2,360,567 | 2,174,004 | 2,168,166 |
| Total deposits | 2,036,697 | 2,037,467 | 1,707,613 | 1,551,728 | 1,556,990 |
| Interest-bearing deposits | 1,699,991 | 1,733,987 | 1,437,548 | 1,312,865 | 1,320,186 |
| Borrowings | 314,645 | 329,958 | 303,474 | 290,015 | 295,303 |
| Interest-bearing liabilities | 2,014,636 | 2,063,945 | 1,741,022 | 1,602,880 | 1,615,489 |
| Stockholders' equity | 356,812 | 347,637 | 323,994 | 310,795 | 306,779 |
| Tax equivalent net interest income | 26,832 | 27,139 | 20,206 | 18,660 | 18,947 |
| FIRST COMMUNITY BANCSHARES, INC. | |||||||||||
| AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited) | |||||||||||
| Three Months Ended December 31, | |||||||||||
| 2012 | 2011 | ||||||||||
| (Amounts in thousands) |
Average Balance |
Interest (1) |
Average Yield/ Rate (1) |
Average Balance |
Interest (1) |
Average Yield/ Rate (1) |
|||||
| Assets | |||||||||||
| Earning assets | |||||||||||
| Loans (2) | $ 1,745,584 | $ 28,231 | 6.43% | $ 1,392,650 | $ 19,987 | 5.69% | |||||
| Securities available-for-sale | 518,982 | 3,623 | 2.78% | 476,244 | 3,784 | 3.15% | |||||
| Securities held-to-maturity | 816 | 16 | 7.80% | 3,394 | 70 | 8.18% | |||||
| Interest-bearing deposits | 111,423 | 82 | 0.29% | 41,480 | 41 | 0.39% | |||||
| Total earning assets | 2,376,805 | 31,952 | 5.35% | 1,913,768 | 23,882 | 4.95% | |||||
| Other assets | 359,232 | 254,398 | |||||||||
| Total assets | $ 2,736,037 | $ 2,168,166 | |||||||||
| Liabilities | |||||||||||
| Interest-bearing deposits | |||||||||||
| Demand deposits | $ 351,329 | $ 62 | 0.07% | $ 277,722 | $ 27 | 0.04% | |||||
| Savings deposits | 495,116 | 156 | 0.13% | 395,530 | 117 | 0.12% | |||||
| Time deposits | 853,546 | 2,386 | 1.11% | 646,934 | 2,493 | 1.53% | |||||
| Total interest-bearing deposits | 1,699,991 | 2,604 | 0.61% | 1,320,186 | 2,637 | 0.79% | |||||
| Borrowings | |||||||||||
| Federal funds purchased | -- | -- | 0.00% | 308 | -- | 0.00% | |||||
| Retail repurchase agreements | 79,014 | 105 | 0.53% | 79,114 | 103 | 0.52% | |||||
| Wholesale repurchase agreements | 58,196 | 540 | 3.69% | 50,000 | 479 | 3.80% | |||||
| FHLB advances and other borrowings | 177,435 | 1,871 | 4.19% | 165,881 | 1,716 | 4.10% | |||||
| Total borrowings | 314,645 | 2,516 | 3.18% | 295,303 | 2,298 | 3.09% | |||||
| Total interest-bearing liabilities | 2,014,636 | 5,120 | 1.01% | 1,615,489 | 4,935 | 1.21% | |||||
| Noninterest-bearing demand deposits | 336,706 | 236,804 | |||||||||
| Other liabilities | 27,883 | 9,094 | |||||||||
| Total liabilities | 2,379,225 | 1,861,387 | |||||||||
| Stockholders' equity | 356,812 | 306,779 | |||||||||
| Total liabilities and stockholders' equity | $ 2,736,037 | $ 2,168,166 | |||||||||
| Net interest income, tax equivalent | $ 26,832 | $ 18,947 | |||||||||
| Net interest rate spread (3) | 4.34% | 3.74% | |||||||||
| Net interest margin(4) | 4.49% | 3.93% | |||||||||
| (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. | |||||||||||
| FIRST COMMUNITY BANCSHARES, INC. | ||||||||||||
| AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited) | ||||||||||||
| Year Ended December 31, | ||||||||||||
| 2012 | 2011 | |||||||||||
| (Amounts in thousands) |
Average Balance |
Interest (1) |
Average Yield/ Rate (1) |
Average Balance |
Interest (1) |
Average Yield/ Rate (1) |
||||||
| Assets | ||||||||||||
| Earning assets | ||||||||||||
| Loans (2) | $ 1,611,557 | $ 96,803 | 6.01% | $ 1,382,097 | $ 80,742 | 5.84% | ||||||
| Securities available-for-sale | 502,416 | 15,170 | 3.02% | 434,583 | 15,775 | 3.63% | ||||||
| Securities held-to-maturity | 2,622 | 171 | 6.52% | 3,999 | 333 | 8.33% | ||||||
| Interest-bearing deposits | 77,851 | 259 | 0.33% | 116,063 | 285 | 0.25% | ||||||
| Total earning assets | 2,194,446 | 112,403 | 5.12% | 1,936,742 | 97,135 | 5.02% | ||||||
| Other assets | 316,485 | 258,897 | ||||||||||
| Total assets | $ 2,510,931 | $ 2,195,639 | ||||||||||
| Liabilities | ||||||||||||
| Interest-bearing deposits | ||||||||||||
| Demand deposits | $ 306,019 | $ 185 | 0.06% | $ 277,263 | $ 431 | 0.16% | ||||||
| Savings deposits | 471,406 | 556 | 0.12% | 410,240 | 886 | 0.22% | ||||||
| Time deposits | 776,901 | 9,231 | 1.19% | 682,997 | 11,471 | 1.68% | ||||||
| Total interest-bearing deposits | 1,554,326 | 9,972 | 0.64% | 1,370,500 | 12,788 | 0.93% | ||||||
| Borrowings | ||||||||||||
| Federal funds purchased | 490 | 2 | 0.41% | 77 | -- | 0.00% | ||||||
| Retail repurchase agreements | 78,608 | 449 | 0.57% | 83,564 | 544 | 0.65% | ||||||
| Wholesale repurchase agreements | 55,163 | 2,023 | 3.67% | 50,000 | 1,887 | 3.77% | ||||||
| FHLB advances and other borrowings | 175,333 | 7,154 | 4.08% | 168,988 | 6,928 | 4.10% | ||||||
| Total borrowings | 309,594 | 9,628 | 3.11% | 302,629 | 9,359 | 3.09% | ||||||
| Total interest-bearing liabilities | 1,863,920 | 19,600 | 1.05% | 1,673,129 | 22,147 | 1.32% | ||||||
| Noninterest-bearing demand deposits | 286,950 | 223,233 | ||||||||||
| Other liabilities | 25,160 | 4,127 | ||||||||||
| Total liabilities | 2,176,030 | 1,900,489 | ||||||||||
| Stockholders' equity | 334,901 | 295,150 | ||||||||||
| Total liabilities and stockholders' equity | $ 2,510,931 | $ 2,195,639 | ||||||||||
| Net interest income, tax equivalent | $ 92,803 | $ 74,988 | ||||||||||
| Net interest rate spread (3) | 4.07% | 3.69% | ||||||||||
| Net interest margin(4) | 4.23% | 3.87% | ||||||||||
| (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. | ||||||||||||