First Community Bancshares, Inc. Announces Fourth Quarter and Full Year 2017 Results and Quarterly Dividend

BLUEFIELD, Va., Jan. 23, 2018 (GLOBE NEWSWIRE) -- First Community Bancshares, Inc. (NASDAQ:FCBC) (www.firstcommunitybank.com) (the “Company”) today reported its unaudited results of operations and other financial information for the quarter and year ended December 31, 2017. The Company reported net income of $1.21 million, or $0.07 per diluted common share for the quarter ended December 31, 2017, and $21.49 million, or $1.26 per diluted common share for the year ended December 31, 2017.

On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Reform Act”), was enacted into law. The Tax Reform Act reduces the federal tax rate for corporations from 35% to 21%, effective January 1, 2018, and changes, or limits, certain tax deductions. As a result of the new law, generally accepted accounting principles in the United States (“GAAP”) require the immediate revaluation of deferred tax assets to a value reflective of the lower corporate tax rate. During the fourth quarter of 2017, the Company recorded a one-time estimated revaluation adjustment of approximately $6.55 million to reduce its net deferred tax asset, which increased the provision for income taxes.

Excluding the impact of the non-cash revaluation, fourth quarter earnings were $7.77 million, or $0.45 per diluted share, an increase of $1.36 million, or 21.25%, over fourth quarter 2016. Full year earnings exclusive of the revaluation were $28.04 million, an increase of $2.91 million, or 11.59%, over 2016 earnings. Adjusted return on assets and equity were 1.18% and 8.02%, respectively, both significant increases over the prior year.

The Company also announced today that the Board of Directors declared a quarterly cash dividend to common shareholders of eighteen cents ($0.18) per common share. The quarterly dividend is payable to common shareholders of record on February 2, 2018, and is expected to be paid on or about February 16, 2018. The current year marks the 33rd consecutive year of regular cash dividends paid to stockholders.

Fourth Quarter 2017 Highlights

  • Income Statement
    • Net income totaled $1.21 million, or $0.07 per diluted common share for the fourth quarter of 2017.
    • Excluding the impact of the one-time deferred tax asset revaluation, earnings increased $1.36 million, or 21.25% to $7.77 million and diluted earnings per share increased $0.07 to $0.45 compared to the same quarter of 2016.
    • The non-GAAP efficiency ratio improved to 57.04% compared to 61.58% in the same quarter of 2016.
    • Net interest margin increased 18 basis points to 4.17%, and normalized net interest margin increased 12 basis points to 3.95% compared to the same quarter of 2016.
  • Balance Sheet
    • Net charge-offs decreased $2.10 million, or 59.23%, to $1.44 million for the year ended December 31, 2017, compared to the same period of 2016.
    • Book value per common share increased $0.68 to $20.63 compared to December 31, 2016.
    • Tangible book value per common share increased $0.75 to $14.64 compared to December 31, 2016.
    • The Company and its subsidiary bank both significantly exceed regulatory “well capitalized” targets as of December 31, 2017.

Non-GAAP Financial Measures

The Company prepares its financial statements in accordance with 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 44 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of December 31, 2017. First Community Bank provides insurance services through First Community Insurance Services, which operates 8 in-branch locations in Virginia and West Virginia and offers wealth management and investment advice through its Trust Division and First Community Wealth Management, which collectively managed $957 million in combined assets as of December 31, 2017. The Company reported consolidated assets of $2.39 billion as of December 31, 2017. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. Additional investor information is available on the Company’s website at www.firstcommunitybank.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) 2017 2017 2017 2017 2016 2017 2016
Interest income
Interest and fees on loans$ 22,314 $ 22,694 $ 22,914 $ 21,827 $ 21,956 $ 89,749 $ 87,718
Interest on securities 1,095 1,080 1,170 1,206 1,362 4,551 6,853
Interest on deposits in banks 353 275 221 159 98 1,008 153
Total interest income 23,762 24,049 24,305 23,192 23,416 95,308 94,724
Interest expense
Interest on deposits 1,313 1,275 1,233 1,166 1,145 4,987 4,479
Interest on borrowings 716 724 778 885 1,314 3,103 5,365
Total interest expense 2,029 1,999 2,011 2,051 2,459 8,090 9,844
Net interest income 21,733 22,050 22,294 21,141 20,957 87,218 84,880
Provision for loan losses 615 730 934 492 500 2,771 1,255
Net interest income after provision 21,118 21,320 21,360 20,649 20,457 84,447 83,625
Total noninterest income 7,947 7,135 5,475 5,691 6,238 26,248 27,066
Total noninterest expense 17,132 16,909 17,458 17,083 16,653 68,582 72,746
Income before income taxes 11,933 11,546 9,377 9,257 10,042 42,113 37,945
Income tax expense 10,720 3,894 2,959 3,055 3,638 20,628 12,819
Net income$ 1,213 $ 7,652 $ 6,418 $ 6,202 $ 6,404 $ 21,485 $ 25,126
Earnings per common share
Basic$ 0.07 $ 0.45 $ 0.38 $ 0.36 $ 0.38 $ 1.26 $ 1.45
Diluted 0.07 0.45 0.38 0.36 0.38 1.26 1.45
Cash dividends per common share 0.18 0.18 0.16 0.16 0.16 0.68 0.60
Weighted average shares outstanding
Basic 16,992,519 17,005,654 17,012,189 16,998,125 16,891,010 17,002,116 17,319,689
Diluted 17,083,949 17,082,729 17,082,832 17,072,174 17,043,869 17,077,842 17,365,524
Performance ratios
Return on average assets 0.20% 1.29% 1.08% 1.06% 1.05% 0.91% 1.02%
Return on average common equity 1.35% 8.61% 7.41% 7.35% 7.49% 6.14% 7.42%
Return on average tangible common equity(1) 1.89% 12.13% 10.51% 10.50% 10.75% 8.69% 10.76%
(1)A non-GAAP financial measure defined as average stockholders’ equity less average goodwill and other intangibles


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,
2017 2017 2017 2017 2016 2017 2016
(Amounts in thousands, except per share data)
Net income, GAAP$ 1,213 $ 7,652 $ 6,418 $ 6,202 $ 6,404 $ 21,485 $ 25,126
Non-GAAP adjustments:
Net gain on divestitures - - - - (619) - (3,684)
Allowance reversal for sold loans - - - - - - (1,354)
Merger, acquisition, and divestiture expense - - - - 55 - 730
Net loss (gain) on sale of securities 4 - 657 - (388) 661 (335)
Net impairment losses - - - - - - 4,646
Deferred tax asset revaluation (estimated) 6,552 - - - - 6,552 -
Other non-core items (140) 34 (174) (18) (48) (298) (552)
Total adjustments to core earnings 6,416 34 483 (18) (1,000) 6,915 (549)
Tax effect (50) 12 345 (7) (708) 301 (542)
Core earnings, non-GAAP(1)$ 7,679 $ 7,674 $ 6,556 $ 6,191 $ 6,112 $ 28,099 $ 25,119
Core diluted earnings per common share$ 0.45 $ 0.45 $ 0.38 $ 0.36 $ 0.36 $ 1.64 $ 1.45
Performance ratios
Core return on average assets 1.28% 1.29% 1.11% 1.06% 1.01% 1.19% 1.02%
Core return on average common equity 8.56% 8.63% 7.57% 7.33% 7.15% 8.04% 7.42%
Core return on average tangible common equity(2) 11.99% 12.16% 10.74% 10.48% 10.26% 11.36% 10.75%
(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 and other intangibles

Net Interest Income and Margin

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
Three Months Ended December 31,
2017 2016
Average Average Yield/ Average Average Yield/
(Amounts in thousands)Balance Interest(1) Rate(1) Balance Interest(1) Rate(1)
Assets
Earning assets
Loans(2)$ 1,822,583 $ 22,387 4.87% $ 1,846,848 $ 22,012 4.74%
Securities available for sale 171,288 1,383 3.20% 193,342 1,644 3.38%
Securities held to maturity 25,165 105 1.66% 67,254 182 1.08%
Interest-bearing deposits 95,174 353 1.47% 35,470 98 1.10%
Total earning assets 2,114,210 24,228 4.55% 2,142,914 23,936 4.44%
Other assets 256,591 275,022
Total assets$ 2,370,801 $ 2,417,936
Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits $ 451,024 $ 111 0.10% $ 348,869 $ 73 0.08%
Savings deposits 512,156 34 0.03% 522,864 57 0.04%
Time deposits 502,515 1,168 0.92% 519,521 1,015 0.78%
Total interest-bearing deposits 1,465,695 1,313 0.36% 1,391,254 1,145 0.33%
Borrowings
Federal funds purchased - - - 82 - 0.00%
Retail repurchase agreements 5,470 1 0.07% 66,776 12 0.07%
Wholesale repurchase agreements 25,000 204 3.24% 48,913 464 3.77%
FHLB advances and other borrowings 50,000 511 4.05% 92,175 838 3.62%
Total borrowings 80,470 716 3.53% 207,946 1,314 2.51%
Total interest-bearing liabilities 1,546,165 2,029 0.52% 1,599,200 2,459 0.61%
Noninterest-bearing demand deposits 446,487 454,161
Other liabilities 22,103 24,410
Total liabilities 2,014,755 2,077,771
Stockholders' equity 356,046 340,165
Total liabilities and stockholders' equity$ 2,370,801 $ 2,417,936
Net interest income, FTE $ 22,199 $ 21,477
Net interest rate spread 4.03% 3.83%
Net interest margin 4.17% 3.99%
(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,
2017 2016
Average Average Yield/ Average Average Yield/
(Amounts in thousands)Balance Interest(1) Rate(1) Balance Interest(1) Rate(1)
Assets
Earning assets
Loans(2)$ 1,837,092 $ 90,032 4.90% $ 1,793,618 $ 87,848 4.90%
Securities available for sale 164,489 5,695 3.46% 287,332 8,047 2.80%
Securities held to maturity 32,954 487 1.48% 71,069 757 1.07%
Interest-bearing deposits 73,405 1,008 1.37% 18,864 153 0.81%
Total earning assets 2,107,940 97,222 4.61% 2,170,883 96,805 4.46%
Other assets 262,381 284,575
Total assets$ 2,370,321 $ 2,455,458
Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits $ 401,092 $ 412 0.10% $ 342,169 $ 250 0.07%
Savings deposits 520,430 148 0.03% 531,050 248 0.05%
Time deposits 510,411 4,427 0.87% 525,162 3,981 0.76%
Total interest-bearing deposits 1,431,933 4,987 0.35% 1,398,381 4,479 0.32%
Borrowings
Federal funds purchased 1 - 0.00% 4,058 26 0.64%
Retail repurchase agreements 47,716 32 0.07% 68,701 49 0.07%
Wholesale repurchase agreements 25,000 806 3.22% 49,727 1,874 3.77%
FHLB advances and other borrowings 55,502 2,265 4.08% 116,602 3,416 2.93%
Total borrowings 128,219 3,103 2.42% 239,088 5,365 2.24%
Total interest-bearing liabilities 1,560,152 8,090 0.52% 1,637,469 9,844 0.60%
Noninterest-bearing demand deposits 438,513 456,474
Other liabilities 21,955 23,040
Total liabilities 2,020,620 2,116,983
Stockholders' equity 349,701 338,475
Total liabilities and stockholders' equity$ 2,370,321 $ 2,455,458
Net interest income, FTE $ 89,132 $ 86,961
Net interest rate spread 4.09% 3.86%
Net interest margin 4.23% 4.01%
(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,
2017 2016
(Amounts in thousands)Interest(1) Average Yield/ Rate(1) Interest(1) Average Yield/ Rate(1)
Earning assets
Loans(2)$ 22,387 4.87% $ 22,012 4.74%
Accretion income 1,620 1,506
Less: cash accretion income 460 633
Non-cash accretion income 1,160 873
Loans, normalized(3) 21,227 4.62% 21,139 4.55%
Other earning assets 1,841 2.50% 1,924 2.59%
Total earning assets 23,068 4.33% 23,063 4.28%
Total interest-bearing liabilities 2,029 0.52% 2,459 0.61%
Net interest income, FTE(3)$ 21,039 $ 20,604
Net interest rate spread, normalized(3) 3.81% 3.67%
Net interest margin, normalized(3) 3.95% 3.83%
(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,
2017 2016
(Amounts in thousands)Interest(1) Average Yield/ Rate(1) Interest(1) Average Yield/ Rate(1)
Earning assets
Loans(2)$ 90,032 4.90% $ 87,848 4.90%
Accretion income 7,863 7,690
Less: cash accretion income 2,446 2,924
Non-cash accretion income 5,417 4,766
Loans, normalized(3) 84,615 4.61% 83,082 4.63%
Other earning assets 7,190 2.65% 8,957 2.37%
Total earning assets 91,805 4.36% 92,039 4.24%
Total interest-bearing liabilities 8,090 0.52% 9,844 0.60%
Net interest income, FTE(3)$ 83,715 $ 82,195
Net interest rate spread, normalized(3) 3.84% 3.64%
Net interest margin, normalized(3) 3.97% 3.79%
(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) 2017 2017 2017 2017 2016 2017 2016
Noninterest income
Wealth management$ 811 $ 758 $ 791 $ 790 $ 681 $ 3,150 $ 2,828
Service charges on deposits 3,725 3,605 3,360 3,113 3,442 13,803 13,588
Other service charges and fees 2,237 2,141 2,168 2,078 2,014 8,624 8,102
Insurance commissions 343 306 325 373 59 1,347 5,442
Net impairment losses recognized in earnings - - - - - - (4,646)
Net gain (loss) on sale of securities (4) - (657) - 388 (661) 335
Net FDIC indemnification asset amortization (331) (268) (1,586) (1,332) (1,618) (3,517) (5,474)
Net gain on divestitures - - - - 619 - 3,684
Other operating income 1,166 593 1,074 669 653 3,502 3,207
Total noninterest income 7,947 7,135 5,475 5,691 6,238 26,248 27,066
Noninterest expense
Salaries and employee benefits 9,139 9,137 9,157 8,884 9,411 36,317 39,912
Occupancy expense 1,104 1,082 1,341 1,248 1,158 4,775 5,297
Furniture and equipment expense 1,114 1,133 1,087 1,091 1,070 4,425 4,341
Amortization of intangibles 266 266 263 261 265 1,056 1,136
FDIC premiums and assessments 212 227 227 244 274 910 1,383
Merger, acquisition, and divestiture expense - - - - 55 - 730
Other operating expense 5,297 5,064 5,383 5,355 4,420 21,099 19,947
Total noninterest expense 17,132 16,909 17,458 17,083 16,653 68,582 72,746

Efficiency Ratio


EFFICIENCY RATIO CALCULATION (Unaudited)
Three Months Ended Year Ended
December 31, September 30, June 30, March 31, December 31, December 31,
2017 2017 2017 2017 2016 2017 2016
(Amounts in thousands)
Noninterest expense, GAAP$ 17,132 $ 16,909 $ 17,458 $ 17,083 $ 16,653 $ 68,582 $ 72,746
Non-GAAP adjustments
Merger, acquisition, and divestiture expense - - - - (55) - (730)
OREO expense and net loss (14) (647) (213) (328) (184) (1,202) (1,420)
Other non-core items - (64) (327) - 8 (391) (364)
Adjusted noninterest expense 17,118 16,198 16,918 16,755 16,422 66,989 70,232
Net interest income, GAAP 21,733 22,050 22,294 21,141 20,957 87,218 84,880
Noninterest income, GAAP 7,947 7,135 5,475 5,691 6,238 26,248 27,066
Non-GAAP adjustments
Tax equivalency adjustment 466 470 481 497 520 1,914 2,081
Net impairment losses - - - - - - 4,646
Net loss (gain) on sale of securities 4 - 657 - (388) 661 (335)
Net gain on divestitures - - - - (619) - (3,684)
Other non-core items (140) (30) (501) (18) (40) (689) (916)
Adjusted net interest and noninterest income 30,010 29,625 28,406 27,311 26,668 115,352 113,738
Non-GAAP efficiency ratio(1) 57.04% 54.68% 59.56% 61.35% 61.58% 58.07% 61.75%
GAAP efficiency ratio 57.72% 57.94% 62.87% 63.67% 61.24% 60.44% 64.98%
(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) 2017 2017 2017 2017 2016
Assets
Total cash and cash equivalents$ 157,951 $ 105,119 $ 106,799 $ 152,851 $ 76,307
Securities available for sale 165,580 174,424 157,854 158,685 165,579
Securities held to maturity 25,149 25,182 25,216 47,092 47,133
Loans held for investment, net of unearned income
Non-covered 1,789,236 1,806,434 1,796,263 1,784,371 1,795,954
Covered 27,948 31,287 45,845 51,412 56,994
Less allowance for loan losses (19,276) (19,206) (18,886) (18,458) (17,948)
Loans held for investment, net 1,797,908 1,818,515 1,823,222 1,817,325 1,835,000
FDIC indemnification asset 7,161 7,465 8,159 9,931 12,173
Premises and equipment, net 48,126 48,949 49,598 50,057 50,085
Other real estate owned, non-covered 2,409 3,543 3,914 4,477 5,109
Other real estate owned, covered 105 54 124 241 276
Interest receivable 5,778 5,156 5,072 5,059 5,553
Goodwill 95,779 95,779 95,779 95,779 95,779
Other intangible assets 6,151 6,417 6,683 6,947 7,207
Other assets 76,363 84,177 84,183 82,069 86,197
Total assets$ 2,388,460 $ 2,374,780 $ 2,366,603 $ 2,430,513 $ 2,386,398
Liabilities
Deposits
Noninterest-bearing$ 454,143 $ 452,940 $ 443,800 $ 467,677 $ 427,705
Interest-bearing 1,475,748 1,410,880 1,413,574 1,438,917 1,413,633
Total deposits 1,929,891 1,863,820 1,857,374 1,906,594 1,841,338
Securities sold under agreements to repurchase 30,086 83,783 86,011 90,653 98,005
FHLB borrowings 50,000 50,000 50,000 65,000 65,000
Other borrowings - - - 244 15,708
Interest, taxes, and other liabilities 27,769 24,540 24,443 24,618 27,290
Total liabilities 2,037,746 2,022,143 2,017,828 2,087,109 2,047,341
Stockholders' equity
Common stock 21,382 21,382 21,382 21,382 21,382
Additional paid-in capital 228,750 228,510 228,326 228,176 228,142
Retained earnings 180,299 182,145 177,556 173,860 170,377
Treasury stock, at cost (79,121) (79,333) (78,488) (78,533) (78,833)
Accumulated other comprehensive (loss) income (596) (67) (1) (1,481) (2,011)
Total stockholders' equity 350,714 352,637 348,775 343,404 339,057
Total liabilities and stockholders' equity$ 2,388,460 $ 2,374,780 $ 2,366,603 $ 2,430,513 $ 2,386,398
Shares outstanding at period-end 16,998,226 16,986,502 17,017,071 17,013,185 16,994,208
Book value per common share(1)$ 20.63 $ 20.76 $ 20.50 $ 20.18 $ 19.95
Tangible book value per common share(2) 14.64 14.74 14.47 14.15 13.89
(1)Stockholders' equity divided by common shares outstanding
(2)A non-GAAP financial measure defined as stockholders’ equity less goodwill and other intangibles, divided by common shares outstanding

Asset Quality


SELECTED CREDIT QUALITY INFORMATION (Unaudited)
December 31, September 30, June 30, March 31, December 31,
(Amounts in thousands) 2017 2017 2017 2017 2016
Allowance for Loan Losses
Beginning balance$ 19,206 $ 18,886 $ 18,458 $ 17,948 $ 19,633
Provision for (recovery of) loan losses charged
to operations 615 730 934 492 500
Charge-offs (967) (717) (902) (357) (2,485)
Recoveries 422 307 396 375 300
Net (charge-offs) recoveries (545) (410) (506) 18 (2,185)
Ending balance$ 19,276 $ 19,206 $ 18,886 $ 18,458 $ 17,948
Nonperforming Assets
Non-covered nonperforming assets
Nonaccrual loans $ 18,997 $ 18,942 $ 20,146 $ 18,537 $ 15,854
Accruing loans past due 90 days or more 1 - - 20 -
Troubled debt restructurings ("TDRs")(1) 120 141 100 - 114
Total non-covered nonperforming loans 19,118 19,083 20,246 18,557 15,968
OREO 2,409 3,543 3,914 4,477 5,109
Total non-covered nonperforming assets$ 21,527 $ 22,626 $ 24,160 $ 23,034 $ 21,077
Covered nonperforming assets
Nonaccrual loans $ 342 $ 420 $ 446 $ 918 $ 608
Total covered nonperforming loans 342 420 446 918 608
OREO 105 54 124 241 276
Total covered nonperforming assets$ 447 $ 474 $ 570 $ 1,159 $ 884
Additional Information
Performing TDRs(2)$ 7,614 $ 8,101 $ 8,485 $ 8,593 $ 12,838
Total TDRs(3) 7,734 8,242 8,585 8,593 12,952
Non-covered ratios
Nonperforming loans to total loans 1.07% 1.06% 1.13% 1.04% 0.89%
Nonperforming assets to total assets 0.91% 0.97% 1.04% 0.97% 0.90%
Non-PCI allowance to nonperforming loans 100.83% 100.64% 93.24% 99.40% 112.32%
Non-PCI allowance to total loans 1.08% 1.06% 1.05% 1.03% 1.00%
Annualized net charge-offs to average loans 0.12% 0.09% 0.11% 0.00% 0.49%
Total ratios
Nonperforming loans to total loans 1.07% 1.06% 1.12% 1.06% 0.89%
Nonperforming assets to total assets 0.92% 0.97% 1.04% 1.00% 0.92%
Allowance for loan losses to nonperforming loans 99.05% 98.48% 91.27% 94.78% 108.28%
Allowance for loan losses to total loans 1.06% 1.05% 1.03% 1.01% 0.97%
Annualized net charge-offs to average loans 0.12% 0.09% 0.11% 0.00% 0.47%
(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.