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

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


FOR MORE INFORMATION, CONTACT: David D. Brown (276) 326-9000

Source:First Community Bancshares, Inc.