First Community Bancshares, Inc. : Announces Fourth Quarter and Full Year 2011 Results and Quarterly Cash Dividend to Common Stockholders
01/25/2012 | 05:56pm
) (the "Company") today reported net income for the
quarter and twelve months ended December 31, 2011. Net income
to common shareholders was $2.95 million, or $0.17 per
diluted common share, for the quarter ended December 31,
2011. Net income to common shareholders amounted to $19.33
million, or $1.07 per diluted common share, for the year
ended December 31, 2011.
The Company also announced today that the board of directors
declared a quarterly cash dividend to common stockholders of
$1.78 million or ten cents($0.10) per common share. The
quarterly dividend is payable to common stockholders of
record February 10, 2012, and is expected to be paid on or
about February 24, 2012. The current year marks the 26th
consecutive year of cash dividends to stockholders.
Fourth Quarter 2011 Highlights -
The loan loss provision was lower by $1.25 million, or
33.91%, as compared to the fourth quarter of 2010.
Tax-equivalent net interest margin improved to 3.93%, an
increase of 15 basis points when compared to the fourth
quarter of 2010.
Deposit service charges increased 3.54% over the fourth
quarter of 2010.
Operating costs decreased 14.06%, as compared to the fourth
quarter of 2010.
The Company's efficiency ratio of 54.93% for the fourth
quarter of 2011 showed improvement over the ratios reported
in the third quarter of 2011 of 56.84% and the fourth
quarter of 2010 of 64.82%.
The Company's loan portfolio grew $21.41 million, or
1.56%, during the fourth quarter of 2011.
The Company significantly exceeds regulatory
"well-capitalized" targets with a total
risk-based capital ratio of 18.15%, Tier 1 risk-based
capital ratio of 16.89%, and a Tier 1 leverage ratio of
11.50% at December 31, 2011.
Tangible book value per common share increased to $11.40,
an increase of $1.37, or 13.66%, since December 31, 2010.
Net Interest Income
Tax-equivalent net interest margin for the fourth quarter of
2011 was 3.93%, compared to 3.78% in the comparable quarter
of 2010. Net interest income was $18.27 million for the
fourth quarter of 2011, an increase of $167 thousand, or
0.01%, from the fourth quarter of 2010. Total interest income
was $23.20 million for the fourth quarter of 2011, a decrease
of $1.77 million, or 7.10%, from the fourth quarter of 2010.
The decrease in interest income reflects a degree of
continued loan and investment repricing, effectively reducing
the average yields. The yield on loans was 5.69% for the
fourth quarter of 2011, a decrease from 5.94% in the same
period of the prior year, while average loans decreased
slightly between the comparable periods to $1.39 billion as
loan demand remains low.
Total interest expense for the fourth quarter of 2011 was
$4.94 million, a decrease of $1.94 million, or 28.23%, from
the fourth quarter of 2010. Fourth quarter 2011 deposit costs
decreased $1.77 million compared to the fourth quarter of
2010, which was primarily due to a decrease in the average
rate paid on interest-bearing deposits of 43 basis points to
0.79%. Fourth quarter 2011 borrowing costs decreased $171
thousand compared to the fourth quarter of 2010, while the
average borrowings balance decreased $49.40 million between
the comparable periods due to the redemption of various
wholesale borrowings and declining commercial cash management
balances. The cost of interest-bearing liabilities decreased
33 basis points to 1.21% during the fourth quarter of 2011 as
compared to the same quarter of the prior year. Average
interest-bearing liabilities decreased $156.96 million, or
8.86%, for the fourth quarter of 2011 compared with the
fourth quarter of 2010, which included a decrease of $25.24
million in Federal Home Loan Bank ("FHLB")
borrowings and other long-term debt.
Provision
The provision for loan losses for the fourth quarter and
twelve months ended December 31, 2011, totaled $2.44 million
and $9.05 million, respectively, which compares very
favorably to the provision for loan losses for the fourth
quarter and twelve months ended December 31, 2010, of $3.69
million and $14.76 million, respectively. The fourth quarter
of 2011 marks the sixth consecutive quarter of provision
decreases when compared to the prior year's comparable
quarter.
Noninterest Income
Noninterest income for the fourth quarter of 2011 decreased
$5.48 million, or 45.35%, compared to the fourth quarter of
2010, largely due to a reduction in realized gains on the
investment securities portfolio. During the fourth quarter of
2011, wealth management income totaled $818 thousand, a
decrease of $204 thousand, or 19.96%, from the fourth quarter
of 2010. The Trust and Wealth Management Divisions reported
$873 million in assets under management at December 31, 2011.
Service charges on deposit accounts totaled $3.45 million for
the fourth quarter of 2011, an increase of $118 thousand, or
3.54%, from the fourth quarter of 2010. Insurance commissions
were $1.17 million for the fourth quarter of 2011, a decrease
of $304 thousand, or 20.62%, from the comparable quarter of
2010. Net gains on the sales of securities decreased $4.22
million, or 99.39%, in the fourth quarter of 2011 as compared
to the same period of the prior year.
Noninterest Expenses
Noninterest expenses for the fourth quarter of 2011 decreased
$2.79 million, or 14.06%, compared to the fourth quarter of
2010. Salaries and employee benefits decreased $1.42 million,
or 15.19%, in the fourth quarter of 2011 compared to the same
period in the prior year. Occupancy, furniture, and equipment
expense for the fourth quarter of 2011 decreased $158
thousand, or 6.19%, compared to the fourth quarter of 2010.
Federal Deposit Insurance Corporation ("FDIC")
deposit insurance premiums decreased $383 thousand, or
52.68%, in the fourth quarter of 2011, compared to the fourth
quarter of 2010, primarily due to the FDIC's change in
assessment methodology for deposit insurance to one based on
tangible assets. As of December 31, 2011, the Company
recognized a technical goodwill impairment of $1.24 million
at the insurance agency despite strong operating earnings and
good realization on recent sales of non-strategic segments of
that business. Other operating expenses were $4.93 million
for the fourth quarter of 2011, a decrease of $1.02 million,
or 17.16%, from the fourth quarter of 2010. Included in other
operating expenses are expenses and losses associated with
other real estate that amounted to $694 thousand in the
fourth quarter of 2011, compared to $675 thousand in the
third quarter of 2011, and $1.12 million in the fourth
quarter of 2010. The efficiency ratio for the fourth quarter
of 2011 declined to 54.93%, a significant improvement over
both the third quarter of 2011 and the fourth quarter of
2010.
Credit Quality
The Company's loan quality measures at December 31, 2011,
continue to compare favorably to the industry. Total loan
delinquencies of 30 days or more, including non-accrual
loans, as a percent of total loans were 2.62% at both
December 31, 2011 and December 31, 2010. This compares
favorably to the most recent Federal Reserve report of the
Company's peer group of bank holding companies with total
assets between $1 and $3 billion, which reports peer total
loan delinquencies of 3.86%. The ratio of the allowance for
loan losses as a percent of loans held for investment was
1.88% at December 31, 2011, compared to 1.91% at December 31,
2010.
Total non-performing assets, which include unseasoned loan
restructurings and other real estate owned, were 1.57% of
total assets at December 31, 2011, and non-performing loans
as a percentage of loans held for investment were 2.00%.
These levels are much better by comparison with those in the
Federal Reserve peer group which were last reported at 3.08%
for total non-performing assets to total assets and 3.26% for
non-performing loans to total loans. Included in
non-performing assets are $3.50 million of unseasoned loan
restructurings at December 31, 2011.
Annualized net charge-offs were 0.75% of average loans held
for investment for the fourth quarter of 2011. This
represents a decrease of 28 basis points from 1.03% for the
fourth quarter of 2010 and continues a general downward trend
in net charge-offs.
Balance Sheet and Capital
Consolidated assets were $2.16 billion at December 31, 2011.
Total stockholders' equity was $305.73 million at
December 31, 2011, resulting in a book value per common
share, on an as-converted basis, of $15.96, compared to total
stockholders' equity of $269.88 million and a book value
per common share of $15.11 at December 31, 2010. During the
fourth quarter of 2011, the Company repurchased 33,200
treasury shares. The Company also paid a $0.10 per share cash
dividend on common shares during the fourth quarter of 2011.
The Company will host an investor and media teleconference
and webcast on Thursday, January 26, 2012, at 11:00 a.m. To
access the teleconference, the toll-free number is (877)
407-8033. Alternatively, individuals may listen to the live
or archived webcast of the conference call. To listen to the
webcast, visit 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 2011 earnings
press release and financial summary will also be made
available upon request via fax, email or postal service mail.
To request a copy, contact David D. Brown, Chief Financial
Officer, at (276) 326-9000.
Non-GAAP Presentations
The Company prepares its financial statements under
accounting principles generally accepted in the United
States, or "GAAP." However, this press release also
refers to certain non-GAAP financial measures that we
believe, when considered together with GAAP financial
measures, provide investors with important information
regarding our operational performance. An analysis of any
non-GAAP financial measure should be used in conjunction with
results presented in accordance with GAAP.
Core earnings are a non-GAAP financial measure that reflect
net income excluding non-recurring income and expense items,
taxes, loan loss provisions, losses on other real estate
owned, as well as gains, losses, impairment losses on
securities, and goodwill impairments from net income. These
excluded items are difficult to predict and we believe that
core earnings provide the Company and investors with a
valuable tool to evaluate the Company's financial
results.
The adjusted efficiency ratio is a non-GAAP financial measure
that is computed by dividing core noninterest expense by the
sum of net interest income on a tax equivalent basis and core
noninterest income. We believe that this measure provides
investors with important information about our operating
efficiency. Comparison of our adjusted efficiency ratio with
those of other companies may not be possible because other
companies may calculate the adjusted efficiency ratio
differently.
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.
About First Community Bancshares, Inc.
First Community Bancshares, Inc., headquartered in Bluefield,
Virginia, is a $2.16 billion financial holding company and is
the parent company of First Community Bank. First Community
Bank operates through fifty-one locations in the four states
of Virginia, West Virginia, North Carolina, and Tennessee.
First Community Bank offers wealth management and investment
services through its Trust & Financial Services Division and
First Community Wealth Management, a registered investment
advisory firm. The Company's Trust and Wealth Management
Divisions managed assets with a market value of $873 million
at December 31, 2011. 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 offices. The Company's common stock is
traded on the NASDAQ Global Select Market under the symbol,
"FCBC". Additional investor information can be
found on the Internet at .
This news release may include forward-looking statements.
These forward-looking statements are based on current
expectations that involve risks, uncertainties and
assumptions. Should one or more of these risks or
uncertainties materialize or should underlying assumptions
prove incorrect, actual results may differ materially. These
risks include: changes in business or other market
conditions; the timely development, production and acceptance
of new products and services; the challenge of managing
asset/liability levels; the management of credit risk and
interest rate risk; the difficulty of keeping expense growth
at modest levels while increasing revenues; and other risks
detailed from time to time in the Company's Securities
and Exchange Commission reports, including but not limited to
the Annual Report on Form 10-K for the most recent year
ended. Pursuant to the Private Securities Litigation Reform
Act of 1995, the Company does not undertake to update
forward-looking statements contained within this news
release.
First Community Bancshares, Inc.
Condensed Consolidated Statements of Income
Three Months Ended
Year Ended
(Unaudited)
December 30,
December 30,
(In Thousands, Except Share and Per Share Data)
2011
2010
2011
2010
Interest Income
Interest and fees on loans held for investment
$ 19,947
$ 20,950
$ 80,580
$ 84,741
Interest on securities --- taxable
2,023
2,293
8,117
12,704
Interest on securities --- nontaxable
1,190
1,672
5,194
5,943
Interest on deposits in banks
41
60
285
194
Total interest income
23,201
24,975
94,176
103,582
Interest Expense
Interest on deposits
2,637
4,407
12,788
19,887
Interest on borrowings
2,298
2,469
9,359
9,838
Total interest expense
4,935
6,876
22,147
29,725
Net interest income
18,266
18,099
72,029
73,857
Provision for loan losses
2,436
3,686
9,047
14,757
Net interest income after provision for loan losses
15,830
14,413
62,982
59,100
Noninterest Income
Wealth management income
818
1,022
3,510
3,828
Service charges on deposit accounts
3,450
3,332
13,238
13,128
Other service charges and fees
1,429
1,299
5,722
5,074
Insurance commissions
1,170
1,474
6,197
6,727
Net impairment losses recognized in earnings
(1,548)
--
(2,285)
(185)
Net gains on sale of securities
26
4,248
5,264
8,273
Other operating income
1,261
713
3,888
3,663
Total noninterest income
6,606
12,088
35,534
40,508
Noninterest Expense
Salaries and employee benefits
7,903
9,319
34,126
34,528
Occupancy expense of bank premises
1,589
1,586
6,280
6,438
Furniture and equipment expense
804
965
3,490
3,713
Amortization of intangible assets
250
263
1,020
1,032
FDIC premiums and assessments
344
727
1,984
2,856
Prepayment penalties on FHLB advances
--
--
471
--
Goodwill impairment
1,239
1,039
1,239
1,039
Other operating expense
4,925
5,945
20,305
20,337
Total noninterest expense
17,054
19,844
68,915
69,943
Income before income taxes
5,382
6,657
29,601
29,665
Income tax expense
2,151
1,772
9,573
7,818
Net income
3,231
4,885
20,028
21,847
Dividends on preferred stock
286
--
703
--
Net income available to common shareholders
$ 2,945
$ 4,885
$ 19,325
$ 21,847
Per Share
Basic earnings per common share
$ 0.16
$ 0.27
$ 1.08
$ 1.23
Diluted earnings per common share
$ 0.17
$ 0.27
$ 1.07
$ 1.23
Weighted average shares outstanding:
Basic
17,849,286
17,845,857
17,877,421
17,802,009
Diluted
19,159,090
17,891,807
18,691,081
17,822,944
For the period:
Return on average assets
0.54%
0.85%
0.88%
0.97%
Return on average common equity
4.06%
7.00%
6.81%
8.11%
Cash dividends per common share
$ 0.10
$ 0.10
$ 0.40
$ 0.40
First Community Bancshares, Inc.
Condensed Quarterly Statements of Income
As of and for the Quarter Ended
(Unaudited)
December 31,
September 30,
June 30,
March 31,
December 31,
(In Thousands, Except Share and Per Share Data)
2011
2011
2011
2011
2010
Interest Income
Interest and fees on loans held for investment
$ 19,947
$ 20,084
$ 20,094
$ 20,455
$ 20,950
Interest on securities --- taxable
2,023
1,711
1,850
2,533
2,293
Interest on securities --- nontaxable
1,190
1,180
1,291
1,533
1,672
Interest on deposits in banks
41
75
100
69
60
Total interest income
23,201
23,050
23,335
24,590
24,975
Interest Expense
Interest on deposits
2,637
2,998
3,273
3,880
4,407
Interest on borrowings
2,298
2,318
2,308
2,435
2,469
Total interest expense
4,935
5,316
5,581
6,315
6,876
Net interest income
18,266
17,734
17,754
18,275
18,099
Provision for loan losses
2,436
1,920
3,079
1,612
3,686
Net interest income after provision for loan losses
15,830
15,814
14,675
16,663
14,413
Noninterest Income
Wealth management income
818
868
930
894
1,022
Service charges on deposit accounts
3,450
3,404
3,353
3,031
3,332
Other service charges and fees
1,429
1,426
1,461
1,406
1,299
Insurance commissions
1,170
1,523
1,561
1,943
1,474
Net impairment losses recognized in earnings
(1,548)
(210)
--
(527)
--
Net gains on sale of securities
26
178
3,224
1,836
4,248
Other operating income
1,261
877
834
916
713
Total noninterest income
6,606
8,066
11,363
9,499
12,088
Noninterest Expense
Salaries and employee benefits
7,903
8,409
8,685
9,129
9,319
Occupancy expense of bank premises
1,589
1,476
1,568
1,647
1,586
Furniture and equipment expense
804
862
909
915
965
Amortization of intangible assets
250
250
261
259
263
FDIC premiums and assessments
344
348
414
878
727
Prepayment penalties on FHLB advances
--
--
--
471
--
Goodwill impairment
1,239
--
--
--
1,039
Other operating expense
4,925
4,715
5,901
4,764
5,945
Total noninterest expense
17,054
16,060
17,738
18,063
19,844
Income before income taxes
5,382
7,820
8,300
8,099
6,657
Income tax expense
2,151
2,502
2,572
2,348
1,772
Net income
3,231
5,318
5,728
5,751
4,885
Dividends on preferred stock
286
286
131
--
--
Net income available to common shareholders
$ 2,945
$ 5,032
$ 5,597
$ 5,751
$ 4,885
Per Share
Basic earnings per common share
$ 0.16
$ 0.28
$ 0.31
$ 0.32
$ 0.27
Diluted earnings per common share
$ 0.17
$ 0.28
$ 0.31
$ 0.32
$ 0.27
Cash dividends per common share
$ 0.10
$ 0.10
$ 0.10
$ 0.10
$ 0.10
Weighted average shares outstanding:
Basic
17,849,286
17,896,534
17,895,904
17,867,953
17,845,857
Diluted
19,159,090
19,205,634
18,534,489
17,887,118
17,891,807
First Community Bancshares, Inc.
Reconciliation of GAAP Net Income to Core Earnings
Three Months Ended
Year Ended
(Unaudited)
December 31,
December 31,
(In Thousands, Except Per Share Data)
2011
2010
2011
2010
Net income, GAAP
$ 3,231
$ 4,885
$ 20,028
$ 21,847
Non-GAAP adjustments:
Security gains
(26)
(4,248)
(5,264)
(8,273)
FHLB debt prepayment fees
--
--
471
--
Other-than-temporary security impairments
1,548
--
2,285
185
Goodwill impairment
1,239
1,039
1,239
1,039
Intangibles amortization
250
263
1,020
1,032
Other non-core items
--
--
59
4
Total adjustments to core earnings
3,011
(2,946)
(190)
(6,013)
Tax effect
1,129
(1,105)
(71)
(2,255)
Core earnings, non-GAAP
$ 5,113
$ 3,044
$ 19,909
$ 18,089
Core return on average assets
0.94%
0.53%
0.91%
0.80%
Core return on average common equity
7.05%
4.36%
7.02%
6.71%
Core diluted earnings per common share
$0.27
$0.17
$1.07
$1.01
Efficiency Ratio Calculation
Three Months Ended
Year Ended
(Unaudited)
December 31,
December 31,
(In Thousands)
2011
2010
2011
2010
Noninterest expense, GAAP
$ 17,054
$ 19,844
$ 68,915
$ 69,943
Non-GAAP adjustments:
FHLB debt prepayment fees
--
--
(471)
--
OREO expenses
(694)
(1,118)
(3,441)
(3,079)
Goodwill impairment
(1,239)
(1,039)
(1,239)
(1,039)
Intangibles amortization
(250)
(263)
(1,020)
(1,032)
Other non-core items
--
--
(77)
(4)
Adjusted noninterest expense
14,871
17,424
62,667
64,789
Net interest income, GAAP
18,266
18,099
72,029
73,857
Noninterest income, GAAP
6,606
12,088
35,534
40,508
Non-GAAP adjustments:
Tax-equivalency adjustment
681
941
2,959
3,364
Security gains
(26)
(4,248)
(5,264)
(8,273)
Other-than-temporary security impairments
1,548
--
2,285
185
Other non-core items
--
--
(18)
--
Adjusted net interest and noninterest income
27,075
26,880
107,525
109,641
Efficiency Ratio
54.93%
64.82%
58.28%
59.09%
First Community Bancshares, Inc.
Quarterly Balance Sheets
For the Quarter Ended
(Unaudited)
December 31,
September 30,
June 30,
March 31,
December 31,
(Dollars In Thousands)
2011
2011
2011
2011
2010
Cash and due from banks
$ 34,578
$ 38,776
$ 31,451
$ 52,684
$ 28,816
Federal funds sold
1,909
103,179
162,629
121,974
81,526
Interest-bearing balances with banks
10,807
6,365
36,539
809
1,847
Total cash and cash equivalents
47,294
148,320
230,619
175,467
112,189
Securities available-for-sale
482,430
449,387
349,976
430,965
480,064
Securities held-to-maturity
3,490
3,342
4,106
4,524
4,637
Loans held for sale
5,820
3,575
920
2,614
4,694
Loans held for investment, net of unearned income
1,396,067
1,374,656
1,373,944
1,375,685
1,386,206
Less allowance for loan losses
26,205
26,407
26,482
26,482
26,482
Net loans
1,375,682
1,351,824
1,348,382
1,351,817
1,364,418
Premises and equipment, net
54,721
54,860
55,808
56,189
56,244
Other real estate owned
5,914
5,942
5,585
5,644
4,910
Interest receivable
6,193
6,264
6,202
7,288
7,675
Goodwill
83,056
83,832
85,132
84,930
84,914
Other intangible assets
4,326
4,576
5,205
5,466
5,725
Other assets
101,683
111,745
115,385
118,690
123,462
Total assets
$ 2,164,789
$ 2,220,092
$ 2,206,400
$ 2,240,980
$ 2,244,238
Deposits:
Noninterest-bearing demand
$ 240,268
$ 233,683
$ 219,488
$ 222,072
$ 205,151
Interest-bearing demand
275,156
295,804
271,622
287,006
262,420
Savings
394,707
396,767
405,409
420,481
426,547
Time
633,336
664,237
683,157
707,458
726,837
Total deposits
1,543,467
1,590,491
1,579,676
1,637,017
1,620,955
Interest, taxes and other liabilities
20,452
20,030
20,563
20,459
21,318
Securities sold under agreements to repurchase
129,208
139,510
137,778
139,472
140,894
FHLB borrowings
150,000
150,000
150,000
150,000
175,000
Other indebtedness
15,933
15,941
16,179
16,186
16,193
Total liabilities
1,859,060
1,915,972
1,904,196
1,963,134
1,974,360
Preferred stock, net of discount
18,921
18,921
18,921
--
--
Common stock
18,083
18,083
18,083
18,083
18,083
Additional paid-in capital
188,118
188,243
188,278
188,742
189,239
Retained earnings
93,656
92,498
89,257
85,450
81,486
Treasury stock, at cost
(5,721)
(5,651)
(5,137)
(5,851)
(6,740)
Accumulated other comprehensive loss
(7,328)
(7,974)
(7,198)
(8,578)
(12,190)
Total stockholders' equity
305,729
304,120
302,204
277,846
269,878
Total liabilities and stockholders' equity
$ 2,164,789
$ 2,220,092
$ 2,206,400
$ 2,240,980
$ 2,244,238
Actual shares outstanding at period end
17,849,376
17,869,514
17,917,824
17,894,899
17,866,335
Book value per common share at period end (1)
$ 15.96
$ 15.86
$ 15.72
$ 15.53
$ 15.11
Tangible book value per common share at period end
(2)
$ 11.40
$ 11.25
$ 11.02
$ 10.48
$ 10.03
(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
As of and for the Quarter Ended
(Unaudited)
December 31,
September 30,
June 30,
March 31,
December 31,
(Dollars in Thousands)
2011
2011
2011
2011
2010
Summary of Loan Loss Experience
Allowance for loan losses:
Beginning balance
$ 26,407
$ 26,482
$ 26,482
$ 26,482
$ 26,420
Provision for loan losses
2,436
1,920
3,079
1,612
3,686
Charge-offs
(2,915)
(3,062)
(3,456)
(2,027)
(3,846)
Recoveries
277
1,067
377
415
222
Net charge-offs
(2,638)
(1,995)
(3,079)
(1,612)
(3,624)
Ending balance
$ 26,205
$ 26,407
$ 26,482
$ 26,482
$ 26,482
Summary of Asset Quality
Non-accrual loans
$ 24,487
$ 22,877
$ 22,037
$ 17,703
$ 19,414
Restructured loans
3,496
964
878
1,509
5,325
Loans 90 days or more past due and still accruing
--
--
--
--
--
Total non-performing loans
27,983
23,841
22,915
19,212
24,739
Other real estate owned
5,914
5,942
5,585
5,644
4,910
Total non-performing assets
$ 33,897
$ 29,783
$ 28,500
$ 24,856
$ 29,649
Restructured loans performing in accordance with
terms
$ 827
$ 1,156
$ 7,044
$ 7,519
$ 3,911
Asset Quality Ratios
Non-performing loans as a percentage of loans held
for investment
2.00%
1.73%
1.67%
1.40%
1.78%
Non-performing assets as a percentage of total assets
1.57%
1.34%
1.29%
1.11%
1.32%
Annualized net charge-offs as a percentage
of average loans held for investment
0.75%
0.57%
0.90%
0.47%
1.03%
Allowance for loan losses as a percentage of loans held
for investment
1.88%
1.92%
1.93%
1.93%
1.91%
Ratio of allowance for loan losses to non-performing
loans
0.94
1.11
1.16
1.38
1.07
First Community Bancshares, Inc.
Non-accrual Loan Detail
As of December 31, 2011
Non-accrual
(Unaudited)
Loans
Non-accrual
Loans to Loans
(Dollars in Thousands)
Outstanding
Loans
Outstanding
Commercial
Construction -- commercial
$ 35,482
$ 461
1.30%
Land development
2,902
297
10.23%
Other land loans
23,384
279
1.19%
Commercial and industrial
91,939
4,312
4.69%
Multi-family residential
77,050
341
0.44%
Single family non-owner occupied
106,743
1,639
1.54%
Non-farm, non-residential
336,005
8,063
2.40%
Agricultural
1,374
--
0.00%
Farmland
37,161
271
0.73%
Total commercial
712,040
15,663
2.20%
Consumer real estate
Home equity lines
111,387
516
0.46%
Single family owner occupied
473,067
8,255
1.74%
Owner occupied construction
19,577
1
0.01%
Total consumer real estate
604,031
8,772
1.45%
Consumer and other
Consumer loans
67,129
52
0.08%
Other loans
12,867
--
0.00%
Total consumer and other
79,996
52
0.07%
Total loans
$ 1,396,067
$ 24,487
1.75%
First Community Bancshares, Inc.
Selected Financial Information
As of and for the Quarter Ended
(Unaudited)
December 31,
September 30,
June 30,
March 31,
December 31,
(Dollars in Thousands)
2011
2011
2011
2011
2010
Ratios
Return on average assets
0.54%
0.91%
1.02%
1.05%
0.85%
Return on average common equity
4.06%
6.94%
7.91%
8.47%
7.00%
Net interest margin
3.93%
3.77%
3.83%
3.96%
3.78%
Efficiency ratio for the quarter
54.93%
56.84%
59.03%
62.27%
64.82%
Efficiency ratio year-to-date
58.28%
59.41%
60.67%
62.27%
59.09%
Equity as a percent of total assets at end of period
14.12%
13.70%
13.70%
12.40%
12.03%
Average earning assets as a percentage of average
total assets
88.27%
88.39%
88.11%
88.07%
87.69%
Average loans as a percentage of average deposits
89.45%
87.15%
85.57%
84.78%
85.54%
Average Balances
Investments
$ 479,638
$ 417,291
$ 386,706
$ 470,833
$ 498,090
Loans
1,392,650
1,379,144
1,373,988
1,382,526
1,402,178
Earning assets
1,913,768
1,936,720
1,935,470
1,961,538
1,996,106
Total assets
2,168,166
2,191,145
2,196,691
2,227,255
2,276,257
Deposits
1,556,990
1,582,481
1,605,694
1,630,701
1,639,154
Interest-bearing deposits
1,320,186
1,357,938
1,386,292
1,418,807
1,427,746
Borrowings
295,303
300,751
297,857
316,864
344,704
Interest-bearing liabilities
1,615,489
1,658,689
1,684,149
1,735,671
1,772,450
Equity
306,779
306,524
291,474
275,350
276,723
Tax-equivalent net interest income
18,947
18,410
18,490
19,141
19,040
First Community Bancshares, Inc.
Consolidated Average Balance Sheets, Yields, and Rates
Three Months Ended December 31,
2011
2010
(Unaudited)
Average
Interest
Average
Average
Interest
Average
(Dollars in Thousands)
Balance
(1)
Rate (1)
Balance
(1)
Rate (1)
Earning assets
Loans held for investment (2)
$ 1,392,650
$ 19,987
5.69%
$ 1,402,178
$ 20,992
5.94%
Securities available-for-sale
476,244
3,784
3.15%
493,018
4,751
3.82%
Securities held-to-maturity
3,394
70
8.18%
5,072
113
8.84%
Interest-bearing deposits with banks
41,480
41
0.39%
95,838
60
0.25%
Total earning assets
1,913,768
23,882
4.95%
1,996,106
25,916
5.15%
Other assets
254,398
280,151
Total
$ 2,168,166
$ 2,276,257
Interest-bearing liabilities
Interest-bearing demand deposits
$ 277,722
$ 27
0.04%
$ 266,938
$ 256
0.38%
Savings deposits
395,530
117
0.12%
426,030
468
0.44%
Time deposits
646,934
2,493
1.53%
734,778
3,683
1.99%
Fed funds purchased
308
--
0.00%
--
--
--
Retail repurchase agreements
79,114
103
0.52%
103,580
219
0.84%
Wholesale repurchase agreements
50,000
479
3.80%
50,000
469
3.72%
FHLB borrowings & other long-term debt
165,881
1,716
4.10%
191,124
1,781
3.70%
Total interest-bearing liabilities
1,615,489
4,935
1.21%
1,772,450
6,876
1.54%
Noninterest-bearing demand deposits
236,804
211,408
Other liabilities
9,094
15,676
Stockholders' equity
306,779
276,723
Total
$ 2,168,166
$ 2,276,257
Net interest income, tax-equivalent
$ 18,947
$ 19,040
Net interest rate spread (3)
3.74%
3.61%
Net interest margin (4)
3.93%
3.78%
(1) Fully taxable equivalent at the rate of 35%.
(2) Non-accrual loans are included in average balances
outstanding but with no related interest income during
the period of non-accrual.
(3) Represents the difference between the yield on
earning assets and cost of funds.
(4) Represents tax-equivalent net interest income divided
by average earning assets.
First Community Bancshares, Inc.
Consolidated Average Balance Sheets, Yields, and Rates
Year Ended December 31,
2011
2010
(Unaudited)
Average
Interest
Average
Average
Interest
Average
(Dollars in Thousands)
Balance
(1)
Rate (1)
Balance
(1)
Rate (1)
Earning assets
Loans held for investment (2)
$ 1,382,097
$ 80,742
5.84%
$ 1,400,061
$ 84,906
6.06%
Securities available-for-sale
434,583
15,775
3.63%
492,703
21,313
4.33%
Securities held-to-maturity
3,999
333
8.32%
6,299
533
8.46%
Interest-bearing deposits with banks
116,063
285
0.25%
81,987
194
0.24%
Total earning assets
1,936,742
97,135
5.01%
1,981,050
106,946
5.40%
Other assets
258,897
282,005
Total
$ 2,195,639
$ 2,263,055
Interest-bearing liabilities
Interest-bearing demand deposits
$ 277,263
$ 431
0.16%
$ 252,471
$ 980
0.39%
Savings deposits
410,240
886
0.22%
421,184
2,751
0.65%
Time deposits
682,997
11,471
1.68%
760,286
16,156
2.12%
Fed funds purchased
77
--
0.00%
--
--
--
Retail repurchase agreements
83,564
544
0.65%
97,531
992
1.02%
Wholesale repurchase agreements
50,000
1,887
3.77%
50,000
1,872
3.74%
FHLB borrowings & other long-term debt
168,988
6,928
4.10%
194,461
6,974
3.59%
Total interest-bearing liabilities
1,673,129
22,147
1.32%
1,775,933
29,725
1.67%
Noninterest-bearing demand deposits
223,233
206,396
Other liabilities
4,127
11,280
Stockholders' equity
295,150
269,446
Total
$ 2,195,639
$ 2,263,055
Net interest income, tax-equivalent
$ 74,988
$ 77,221
Net interest rate spread (3)
3.69%
3.73%
Net interest margin (4)
3.87%
3.90%
(1) Fully taxable equivalent at the rate of 35%.
(2) Non-accrual loans are included in average balances
outstanding but with no related interest income during
the period of non-accrual.
(3) Represents the difference between the yield on
earning assets and cost of funds.
(4) Represents tax-equivalent net interest income divided
by average earning assets.
