Published:
First Community Bancshares, Inc. Announces Third Quarter 2009 Results
BLUEFIELD, Va. - (BUSINESS WIRE) - First Community Bancshares, Inc. (NASDAQ: FCBC) (www.fcbinc.com)
today reported a net loss for the quarter ended September 30, 2009, of
$11.30 million, or $0.65 per common share, and a net loss available to
common shareholders for the third quarter of 2009 of $12.31 million, or
$0.71 per common share. Net loss and net loss available to common
shareholders amounted to $3.67 million, or $0.26 per share, and $5.83
million, or $0.42 per share, respectively, for the nine months ended
September 30, 2009. The losses recognized during the three and nine
months ended September 30, 2009, were due to after-tax securities
impairment charges of $19.33 million and $21.83 million, respectively,
and are discussed in more detail below. Core earnings for the third
quarter of 2009 amounted to $4.32 million, or $0.25 per diluted share,
and $14.53 million, or $1.04 per diluted share for the nine months ended
September 30, 2009 (see the attached reconciliation of GAAP to core
earnings).
Third Quarter 2009 Highlights –
-
Repaid the U. S. Treasury's $41.50 million preferred stock investment
-
Completed the TriStone Community Bank acquisition and integration
-
Continued stable and strong asset quality metrics with a ratio of
non-performing assets to total assets at September 30, 2009 of 71
basis points
-
Net interest margin increased to 3.68%, up six basis points from the
quarter ended June 30, 2009
-
Declared cash dividend of $0.10 per share of common stock
-
First Community Bank, N. A. remains "well-capitalized" as defined by
regulatory measures with a total risk-based capital ratio of 11.4% and
a Tier 1 leverage ratio of 8.7% at September 30, 2009
Commenting on third quarter results, Chief Executive Officer John M.
Mendez said, "We have achieved a great deal in the third quarter and
throughout 2009. The TriStone Community Bank acquisition, our continued
loan quality, our capital raise and repayment of the TARP investment
have resulted in a stronger balance sheet with greater earnings
capacity, which has positioned us for success in 2010. The impairment
charges are certainly a distraction and provide additional confirmation
of how difficult the economy has been for the financial services
industry. Although we have not completely eliminated our exposure to our
investment securities, we believe that we have significantly reduced an
element of risk in our balance sheet and will evaluate our position in
these securities very closely in the fourth quarter."
On July 31, 2009, the Company completed its acquisition of TriStone
Community Bank in Winston-Salem, North Carolina. TriStone Community
Bank's Chief Executive Officer, Simpson O. "Skip" Brown, remains with
First Community Bank and has assumed the role of Regional President for
the Winston-Salem and East Tennessee areas.
Net Interest Income
Tax-equivalent net interest margin for the third quarter of 2009 was
3.68%. Net interest income was $17.54 million, an increase of $1.21
million, or 7.43%, from the third quarter of 2008. Interest income was
$27.13 million, an increase of $580 thousand, or 2.18%, from the third
quarter of 2008. The yield on loans dropped to 6.14% from 6.53% while
average loans increased $187.75 million to $1.36 billion from the third
quarter 2008, which was reflective of the acquisitions of Coddle Creek
Financial and TriStone Community Bank in November 2008 and July 2009,
respectively. Yields on loans have dropped as a direct result of the
precipitous declines in market rates of interest as the prime lending
rate decreased 175 basis points to 3.25% in the third quarter of 2009
from 5.00% in the third quarter of 2008.
The Company also maintained an average federal funds sold position of
$65.52 million through the third quarter. This increased liquidity
position continued to have a negative impact on net interest margin.
Third quarter interest expense was $9.59 million, a decrease of $633
thousand, or 6.60%, from the third quarter of 2008. Third quarter
deposit costs increased $314 thousand compared to the third quarter of
2008, while the average rate paid on interest-bearing deposits decreased
44 basis points to 1.93%. Compared to the third quarter of 2008,
interest costs on borrowings decreased $947 thousand to $2.60 million,
while the average balance decreased $69.48 million due to the redemption
of various wholesale borrowings and the Company's relatively liquid
balance sheet. The cost of interest-bearing liabilities decreased 45
basis points during the third quarter of 2009 compared to the third
quarter of 2008. Average interest bearing liabilities increased $205.44
million, or 13.01%, compared with the third quarter of 2008, and
included a decrease of $20.56 million in Federal Home Loan Bank ("FHLB" )
borrowings.
Non-interest Income
During the third quarter of 2009, wealth management revenues increased
1.46% to $971 thousand, and at September 30, 2009 the Wealth Management
Division reported $841 million in assets under management. Service
charges on deposit accounts were $3.66 million for the third quarter of
2009, a decrease of $149 thousand, or 4.07%, from the third quarter of
2008. Insurance commissions were $1.57 million for the third quarter of
2009, an increase of $327 thousand, or 26.37%, from the same period in
2008. These revenues reflect GreenPoint Insurance Group's acquisition of
Carr & Hyde Insurance in December 2008. Also, during the third quarter
the Company recognized a preliminary gain on the acquisition of TriStone
Community Bank of approximately $4.49 million.
Investment Securities Impairment Charges
The Company maintains a portfolio of investment securities that include
pooled trust preferred securities. These securities generally represent
obligations of banks and, to a lesser extent, insurance companies and
real estate investment trusts. For the year ended December 31, 2008 and
the six months ended June 30, 2009, the Company previously reported
non-cash other-than-temporary impairment ("OTTI" ) charges of $15.46
million and $3.37 million, respectively, on its pooled trust preferred
securities. During the third quarter of 2009, an increasing number of
the banks and other companies that have issued obligations that
collateralize the pooled trust preferred securities that the Company
holds have defaulted or deferred the payment of interest, which
adversely impacted the cash flows from such pooled trust preferred
securities.
In order to enhance its methodology and assumptions for predicting
individual issuer defaults within each of the securities, the Company
recently migrated to a proprietary prediction analysis that considers
many data points regarding the individual banks underlying the
securities. Application of this predictive analysis to our pooled trust
preferred securities portfolio resulted in an increase of projected
default rates by issuers of the securities.
During the third quarter of 2009, the Company recognized pre-tax
credit-related net impairment losses on its pooled trust preferred
securities of $30.53 million, or $1.10 per common share on an after-tax
basis. Both the credit-related net impairment losses and other
comprehensive income ("OCI" ) noncredit-related losses primarily reflect
the continuing deterioration of some of the banks that underlie these
securities. The majority of the impairment recognized in the third
quarter is related to the pooled trust preferred securities where the
underlying collateral is predominantly from banking institutions. The
pooled trust preferred securities were all originally rated "A" and had
a carrying value at 21% of par at September 30, 2009. The Company also
recognized additional impairment of $284 thousand on two equity
securities in the third quarter.
Non-interest Expenses
Excluding OTTI, non-interest expenses for the third quarter of 2009
increased $3.38 million, or 23.48%, from the third quarter of 2008. The
large increase is due to increased federal Deposit Insurance Corporation
("FDIC" ) deposit insurance premiums and merger-related expenses.
Salaries and employee benefits increased $489 thousand, or 6.63%, from
the third quarter of 2008. Coddle Creek Financial branches accounted for
an increase in salaries and employee benefits of $294 thousand, TriStone
Community Bank branches accounted for an increase of $148 thousand, and
GreenPoint Insurance Group's acquisitions accounted for an increase of
$309 thousand. The remainder of the Company showed an overall decrease
in salaries and benefits of $262 thousand.
Occupancy and furniture and equipment expenses decreased $27 thousand,
or 1.23%, during the third quarter of 2009 as compared to the same
period in the prior year. Other operating expenses increased $268
thousand, or 5.86%, compared to the third quarter of 2008. The third
quarter of 2009 efficiency ratio was 59.04% compared to 56.62% in the
third quarter of 2008.
The acquisition of TriStone Community Bank was completed in July 2009
and its integration is largely complete. The Company is on track to
realize its projected pre-tax cost savings of approximately $1.00
million, or 25%. During the third quarter of 2009 the Company incurred
expenses related to the merger of approximately $1.51 million.
Credit Quality
The Company's loan quality measures at September 30, 2009 continue to
compare favorably to the Company's peers and the industry. Total loan
delinquencies of 30 days or more, including non-accrual loans, as a
percent of total loans were 1.62% at September 30, 2009 compared with
1.35% at June 30, 2009. The ratio of allowance for loan losses as a
percent of loans held for investment was 1.25% at September 30, 2009
compared with 1.31% at June 30, 2009. Accounting for the acquisition of
TriStone Community Bank caused this ratio to decline by approximately 13
basis points, as no allowance was recorded at acquisition.
Non-performing assets increased slightly to $16.23 million at September
30, 2009, or 0.71% of total assets, from $15.26 million at June 30,
2009. Non-performing loans as a percentage of loans held for investment
decreased to 0.88% at September 30, 2009, compared with 0.92% at June
30, 2009.
Balance Sheet
Since December 31, 2008, consolidated assets have increased $165.03
million to $2.30 billion at September 30, 2009, due to the acquisition
of TriStone Community Bank, an increasing deposit base, and $61.67
million in new capital from the June 2009 equity offering. Total
stockholders' equity for the Company was $265.54 million, resulting in a
book value per common share outstanding of $15.02 at September 30, 2009,
compared to $220.34 million and $15.46 per common share at December 31,
2008. In September 2009, the Company's board of directors announced a
$0.10 per share dividend on its common stock. 2009 is the Company's 24th
consecutive year of paying dividends to common shareholders.
The Company will host an investor and media teleconference and webcast
on Thursday, October 29, 2009 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 www.fcbinc.com
and follow the link under the Current News Releases section. The
Company's press release and financial summary will be available in this
section, as well. Copies of the Company's third quarter 2009 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 (800) 425-0839.
First Community Bancshares, Inc., headquartered in Bluefield, Virginia,
is a $2.30 billion financial holding company and is the parent company
of First Community Bank, N. A. First Community Bank, N. A. operates
through sixty-one locations in the five states of Virginia, West
Virginia, North Carolina, South Carolina, and Tennessee. First Community
Bank, N. A. offers wealth management services through its Trust &
Financial Services Division and Investment Planning Consultants, Inc., a
registered investment advisory firm which offers wealth management and
investment advice. The Company's wealth management division managed
assets with a market value of $841 million at September 30, 2009. First
Community is also the parent company of GreenPoint Insurance Group,
Inc., a full-service insurance agency located in High Point, North
Carolina. First Community Bancshares, Inc.'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 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 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.
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|
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First Community Bancshares, Inc.
|
|
Condensed Consolidated Statements of Income/(Loss)
|
|
|
|
|
|
(Unaudited)
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
(In Thousands, Except Share and Per Share Data)
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
Interest and fees on loans held for investment
|
|
$
|
21,064
|
|
|
$
|
19,266
|
|
|
$
|
60,619
|
|
|
$
|
60,394
|
|
|
Income
|
|
Interest on securities-taxable
|
|
|
4,562
|
|
|
|
5,567
|
|
|
|
14,903
|
|
|
|
17,101
|
|
|
|
|
Interest on securities-nontaxable
|
|
|
1,449
|
|
|
|
1,708
|
|
|
|
4,527
|
|
|
|
5,775
|
|
|
|
|
Interest on federal funds sold and deposits
|
|
|
55
|
|
|
|
9
|
|
|
|
133
|
|
|
|
260
|
|
|
|
|
Total interest income
|
|
|
27,130
|
|
|
|
26,550
|
|
|
|
80,182
|
|
|
|
83,530
|
|
|
Interest
|
|
Interest on deposits
|
|
|
6,998
|
|
|
|
6,684
|
|
|
|
21,641
|
|
|
|
22,543
|
|
|
Expense
|
|
Interest on borrowings
|
|
|
2,596
|
|
|
|
3,543
|
|
|
|
8,251
|
|
|
|
11,679
|
|
|
|
|
Total interest expense
|
|
|
9,594
|
|
|
|
10,227
|
|
|
|
29,892
|
|
|
|
34,222
|
|
|
|
|
Net interest income
|
|
|
17,536
|
|
|
|
16,323
|
|
|
|
50,290
|
|
|
|
49,308
|
|
|
|
|
Provision for loan losses
|
|
|
3,418
|
|
|
|
3,461
|
|
|
|
8,057
|
|
|
|
4,721
|
|
|
|
|
Net interest income after provision for loan losses
|
|
|
14,118
|
|
|
|
12,862
|
|
|
|
42,233
|
|
|
|
44,587
|
|
|
Non-Interest
|
|
Wealth management income
|
|
|
971
|
|
|
|
957
|
|
|
|
3,088
|
|
|
|
2,954
|
|
|
Income
|
|
Service charges on deposit accounts
|
|
|
3,659
|
|
|
|
3,808
|
|
|
|
10,307
|
|
|
|
10,370
|
|
|
|
|
Other service charges and fees
|
|
|
1,156
|
|
|
|
1,040
|
|
|
|
3,467
|
|
|
|
3,225
|
|
|
|
|
Insurance commissions
|
|
|
1,567
|
|
|
|
1,240
|
|
|
|
5,523
|
|
|
|
3,730
|
|
|
|
|
Net impairment losses recognized in earnings
|
|
|
(30,811
|
)
|
|
|
(51
|
)
|
|
|
(34,796
|
)
|
|
|
(51
|
)
|
|
|
|
Security gains
|
|
|
866
|
|
|
|
163
|
|
|
|
2,930
|
|
|
|
2,133
|
|
|
|
|
Acquisition gain
|
|
|
4,493
|
|
|
|
-
|
|
|
|
4,493
|
|
|
|
-
|
|
|
|
|
Other operating income
|
|
|
815
|
|
|
|
675
|
|
|
|
1,750
|
|
|
|
2,336
|
|
|
|
|
Total non-interest income
|
|
|
(17,284
|
)
|
|
|
7,832
|
|
|
|
(3,238
|
)
|
|
|
24,697
|
|
|
Non-Interest
|
|
Salaries and employee benefits
|
|
|
7,860
|
|
|
|
7,371
|
|
|
|
23,131
|
|
|
|
22,741
|
|
|
Expense
|
|
Occupancy expense of bank premises
|
|
|
1,266
|
|
|
|
1,297
|
|
|
|
4,202
|
|
|
|
3,717
|
|
|
|
|
Furniture and equipment expense
|
|
|
928
|
|
|
|
924
|
|
|
|
2,758
|
|
|
|
2,798
|
|
|
|
|
Amortization of intangible assets
|
|
|
262
|
|
|
|
166
|
|
|
|
751
|
|
|
|
484
|
|
|
|
|
FHLB debt prepayment fees
|
|
|
-
|
|
|
|
-
|
|
|
|
88
|
|
|
|
1,647
|
|
|
|
|
FDIC premiums and assessments
|
|
|
1,109
|
|
|
|
62
|
|
|
|
2,584
|
|
|
|
141
|
|
|
|
|
Merger-related expenses
|
|
|
1,505
|
|
|
|
-
|
|
|
|
1,580
|
|
|
|
-
|
|
|
|
|
Other operating expense
|
|
|
4,838
|
|
|
|
4,570
|
|
|
|
14,011
|
|
|
|
13,904
|
|
|
|
|
Total non-interest expense
|
|
|
17,768
|
|
|
|
14,390
|
|
|
|
49,105
|
|
|
|
45,432
|
|
|
|
|
(Loss) income before income taxes
|
|
|
(20,934
|
)
|
|
|
6,304
|
|
|
|
(10,110
|
)
|
|
|
23,852
|
|
|
|
|
Income tax (benefit) expense
|
|
|
(9,633
|
)
|
|
|
1,753
|
|
|
|
(6,444
|
)
|
|
|
6,751
|
|
|
|
|
Net (loss) income
|
|
|
(11,301
|
)
|
|
|
4,551
|
|
|
|
(3,666
|
)
|
|
|
17,101
|
|
|
|
|
Dividends on preferred stock
|
|
|
1,011
|
|
|
|
-
|
|
|
|
2,160
|
|
|
|
-
|
|
|
|
|
Net (loss) income available to common shareholders
|
|
$
|
(12,312
|
)
|
|
$
|
4,551
|
|
|
$
|
(5,826
|
)
|
|
$
|
17,101
|
|
|
Per
|
|
Basic earnings per common share (EPS)
|
|
$
|
(0.71
|
)
|
|
$
|
0.42
|
|
|
$
|
(0.42
|
)
|
|
$
|
1.56
|
|
|
Share
|
|
Diluted earnings per common share (DEPS)
|
|
$
|
(0.71
|
)
|
|
$
|
0.41
|
|
|
$
|
(0.42
|
)
|
|
$
|
1.54
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
17,427,434
|
|
|
|
10,956,867
|
|
|
|
13,918,599
|
|
|
|
10,992,901
|
|
|
|
|
Diluted
|
|
|
17,427,434
|
|
|
|
11,034,059
|
|
|
|
13,918,599
|
|
|
|
11,071,925
|
|
|
|
|
For the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
|
|
-2.15
|
%
|
|
|
0.90
|
%
|
|
|
-0.35
|
%
|
|
|
1.12
|
%
|
|
|
|
Return on average common equity
|
|
|
-18.78
|
%
|
|
|
9.39
|
%
|
|
|
-3.28
|
%
|
|
|
11.09
|
%
|
|
|
|
Cash dividends per common share
|
|
$
|
0.10
|
|
|
$
|
0.28
|
|
|
$
|
0.30
|
|
|
$
|
0.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Community Bancshares, Inc.
|
|
Condensed Quarterly Income/(Loss) Statements
|
|
|
|
|
|
|
|
|
|
As of and for the Quarter Ended
|
|
(Unaudited)
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
(In Thousands, Except Share and Per Share Data)
|
|
2009
|
|
2009
|
|
2009
|
|
2008
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
Interest and fees on loans held for investment
|
|
$
|
21,064
|
|
|
$
|
19,571
|
|
|
$
|
19,984
|
|
|
$
|
19,830
|
|
|
$
|
19,266
|
|
|
Income
|
|
Interest on securities-taxable
|
|
|
4,562
|
|
|
|
5,177
|
|
|
|
5,164
|
|
|
|
5,613
|
|
|
|
5,567
|
|
|
|
|
Interest on securities-nontaxable
|
|
|
1,449
|
|
|
|
1,402
|
|
|
|
1,676
|
|
|
|
1,746
|
|
|
|
1,708
|
|
|
|
|
Interest on federal funds sold and deposits
|
|
|
55
|
|
|
|
39
|
|
|
|
39
|
|
|
|
46
|
|
|
|
9
|
|
|
|
|
Total interest income
|
|
|
27,130
|
|
|
|
26,189
|
|
|
|
26,863
|
|
|
|
27,235
|
|
|
|
26,550
|
|
|
Interest
|
|
Interest on deposits
|
|
|
6,998
|
|
|
|
7,076
|
|
|
|
7,567
|
|
|
|
7,249
|
|
|
|
6,684
|
|
|
Expense
|
|
Interest on borrowings
|
|
|
2,596
|
|
|
|
2,792
|
|
|
|
2,863
|
|
|
|
3,459
|
|
|
|
3,543
|
|
|
|
|
Total interest expense
|
|
|
9,594
|
|
|
|
9,868
|
|
|
|
10,430
|
|
|
|
10,708
|
|
|
|
10,227
|
|
|
|
|
Net interest income
|
|
|
17,536
|
|
|
|
16,321
|
|
|
|
16,433
|
|
|
|
16,527
|
|
|
|
16,323
|
|
|
|
|
Provision for loan losses
|
|
|
3,418
|
|
|
|
2,552
|
|
|
|
2,087
|
|
|
|
2,701
|
|
|
|
3,461
|
|
|
|
|
Net interest income after provision for loan losses
|
|
|
14,118
|
|
|
|
13,769
|
|
|
|
14,346
|
|
|
|
13,826
|
|
|
|
12,862
|
|
|
Non-Int
|
|
Wealth management income
|
|
|
971
|
|
|
|
1,133
|
|
|
|
984
|
|
|
|
1,146
|
|
|
|
957
|
|
|
Income
|
|
Service charges on deposit accounts
|
|
|
3,659
|
|
|
|
3,491
|
|
|
|
3,157
|
|
|
|
3,697
|
|
|
|
3,808
|
|
|
|
|
Other service charges and fees
|
|
|
1,156
|
|
|
|
1,133
|
|
|
|
1,178
|
|
|
|
1,023
|
|
|
|
1,040
|
|
|
|
|
Insurance commissions
|
|
|
1,567
|
|
|
|
1,639
|
|
|
|
2,317
|
|
|
|
1,258
|
|
|
|
1,240
|
|
|
|
|
Net impairment losses recognized in earnings
|
|
|
(30,811
|
)
|
|
|
(3,776
|
)
|
|
|
(209
|
)
|
|
|
(29,923
|
)
|
|
|
(51
|
)
|
|
|
|
Securities gains (losses)
|
|
|
866
|
|
|
|
1,653
|
|
|
|
411
|
|
|
|
(234
|
)
|
|
|
163
|
|
|
|
|
Acquisition gain
|
|
|
4,493
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
Other operating income
|
|
|
815
|
|
|
|
349
|
|
|
|
586
|
|
|
|
659
|
|
|
|
675
|
|
|
|
|
Total non-interest income
|
|
|
(17,284
|
)
|
|
|
5,622
|
|
|
|
8,424
|
|
|
|
(22,374
|
)
|
|
|
7,832
|
|
|
Non-Int
|
|
Salaries and employee benefits
|
|
|
7,860
|
|
|
|
7,405
|
|
|
|
7,866
|
|
|
|
7,135
|
|
|
|
7,371
|
|
|
Expense
|
|
Occupancy expense of bank premises
|
|
|
1,266
|
|
|
|
1,333
|
|
|
|
1,603
|
|
|
|
1,385
|
|
|
|
1,297
|
|
|
|
|
Furniture and equipment expense
|
|
|
928
|
|
|
|
892
|
|
|
|
938
|
|
|
|
942
|
|
|
|
924
|
|
|
|
|
Amortization of intangible assets
|
|
|
262
|
|
|
|
244
|
|
|
|
245
|
|
|
|
205
|
|
|
|
166
|
|
|
|
|
FHLB debt prepayment fees
|
|
|
-
|
|
|
|
88
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
FDIC premiums and assessments
|
|
|
1,109
|
|
|
|
1,287
|
|
|
|
188
|
|
|
|
61
|
|
|
|
62
|
|
|
|
|
Merger-related expenses
|
|
|
1,505
|
|
|
|
74
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
Other operating expense
|
|
|
4,838
|
|
|
|
4,820
|
|
|
|
4,353
|
|
|
|
5,305
|
|
|
|
4,570
|
|
|
|
|
Total non-interest expense
|
|
|
17,768
|
|
|
|
16,143
|
|
|
|
15,194
|
|
|
|
15,033
|
|
|
|
14,390
|
|
|
|
|
(Loss) income before income taxes
|
|
|
(20,934
|
)
|
|
|
3,248
|
|
|
|
7,576
|
|
|
|
(23,581
|
)
|
|
|
6,304
|
|
|
|
|
Income tax (benefit) expense
|
|
|
(9,633
|
)
|
|
|
843
|
|
|
|
2,346
|
|
|
|
(9,561
|
)
|
|
|
1,753
|
|
|
|
|
Net (loss) income
|
|
|
(11,301
|
)
|
|
|
2,405
|
|
|
|
5,230
|
|
|
|
(14,020
|
)
|
|
|
4,551
|
|
|
|
|
Preferred dividends
|
|
|
1,011
|
|
|
|
578
|
|
|
|
571
|
|
|
|
255
|
|
|
|
-
|
|
|
|
|
Net (loss) income available to common shareholders
|
|
$
|
(12,312
|
)
|
|
$
|
1,827
|
|
|
$
|
4,659
|
|
|
$
|
(14,275
|
)
|
|
$
|
4,551
|
|
|
Per
|
|
Basic EPS
|
|
$
|
(0.71
|
)
|
|
$
|
0.14
|
|
|
$
|
0.40
|
|
|
$
|
(1.27
|
)
|
|
$
|
0.42
|
|
|
Share
|
|
Diluted EPS
|
|
$
|
(0.71
|
)
|
|
$
|
0.14
|
|
|
$
|
0.40
|
|
|
$
|
(1.27
|
)
|
|
$
|
0.41
|
|
|
|
|
Cash dividends per common share
|
|
$
|
0.10
|
|
|
$
|
0.20
|
|
|
$
|
-
|
|
|
$
|
0.28
|
|
|
$
|
0.28
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
17,427,434
|
|
|
|
12,696,202
|
|
|
|
11,567,769
|
|
|
|
11,252,183
|
|
|
|
10,956,867
|
|
|
|
|
Diluted
|
|
|
17,427,434
|
|
|
|
12,741,080
|
|
|
|
11,616,568
|
|
|
|
11,252,183
|
|
|
|
11,034,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Community Bancshares, Inc.
|
|
Reconciliation of GAAP Net Income/(Loss) to Core Earnings
|
|
|
|
|
|
(Unaudited)
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
(In Thousands, Except Per Share Data)
|
|
September 30,
|
|
September 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income, GAAP
|
|
$
|
(11,301
|
)
|
|
$
|
4,551
|
|
|
$
|
(3,666
|
)
|
|
$
|
17,101
|
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security (gains)/losses
|
|
|
(866
|
)
|
|
|
(163
|
)
|
|
|
(2,930
|
)
|
|
|
(2,133
|
)
|
|
Acquisition gain
|
|
|
(4,493
|
)
|
|
|
-
|
|
|
|
(4,493
|
)
|
|
|
-
|
|
|
Merger expenses
|
|
|
1,505
|
|
|
|
|
|
|
|
1,580
|
|
|
|
|
|
|
FHLB debt prepayment fees
|
|
|
-
|
|
|
|
-
|
|
|
|
88
|
|
|
|
1,647
|
|
|
Other-than-temporary security impairments
|
|
|
30,811
|
|
|
|
51
|
|
|
|
34,796
|
|
|
|
51
|
|
|
FDIC special assessments
|
|
|
-
|
|
|
|
-
|
|
|
|
988
|
|
|
|
-
|
|
|
Other non-core, non-recurring items
|
|
|
525
|
|
|
|
243
|
|
|
|
1,558
|
|
|
|
686
|
|
|
Total adjustments to core earnings
|
|
|
27,482
|
|
|
|
131
|
|
|
|
31,587
|
|
|
|
251
|
|
|
Tax effect
|
|
|
11,862
|
|
|
|
51
|
|
|
|
13,391
|
|
|
|
98
|
|
|
Core earnings, non-GAAP
|
|
$
|
4,319
|
|
|
$
|
4,631
|
|
|
$
|
14,530
|
|
|
$
|
17,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core return on average assets
|
|
|
0.75
|
%
|
|
|
0.92
|
%
|
|
|
0.88
|
%
|
|
|
1.13
|
%
|
|
Core return on average equity
|
|
|
6.59
|
%
|
|
|
9.56
|
%
|
|
|
8.17
|
%
|
|
|
11.19
|
%
|
|
Core diluted earnings per share
|
|
$
|
0.25
|
|
|
$
|
0.42
|
|
|
$
|
1.04
|
|
|
$
|
1.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio Calculation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
(Dollars In Thousands)
|
|
September 30,
|
|
September 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses, GAAP
|
|
$
|
17,768
|
|
|
$
|
14,390
|
|
|
$
|
49,105
|
|
|
$
|
45,432
|
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger expenses
|
|
|
(1,505
|
)
|
|
|
-
|
|
|
|
(1,580
|
)
|
|
|
-
|
|
|
FHLB debt prepayment fees
|
|
|
-
|
|
|
|
-
|
|
|
|
(88
|
)
|
|
|
(1,647
|
)
|
|
Other non-core, non-recurring items
|
|
|
(525
|
)
|
|
|
(243
|
)
|
|
|
(2,546
|
)
|
|
|
(686
|
)
|
|
Adjusted noninterest expenses
|
|
|
15,738
|
|
|
|
14,147
|
|
|
|
44,891
|
|
|
|
43,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income, GAAP
|
|
|
17,536
|
|
|
|
16,323
|
|
|
|
50,290
|
|
|
|
49,308
|
|
|
Noninterest income, GAAP
|
|
|
(17,284
|
)
|
|
|
7,832
|
|
|
|
(3,238
|
)
|
|
|
24,697
|
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalency adjustment
|
|
|
793
|
|
|
|
941
|
|
|
|
2,482
|
|
|
|
3,171
|
|
|
Security (gains)/losses
|
|
|
(866
|
)
|
|
|
(163
|
)
|
|
|
(2,930
|
)
|
|
|
(2,133
|
)
|
|
Other-than-temporary security impairments
|
|
|
30,811
|
|
|
|
51
|
|
|
|
34,796
|
|
|
|
51
|
|
|
Acquisition gain
|
|
|
(4,493
|
)
|
|
|
-
|
|
|
|
(4,493
|
)
|
|
|
-
|
|
|
Adjusted net interest and noninterest income
|
|
|
26,497
|
|
|
|
24,984
|
|
|
|
76,907
|
|
|
|
75,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio
|
|
|
59.40
|
%
|
|
|
56.62
|
%
|
|
|
58.37
|
%
|
|
|
57.39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Community Bancshares, Inc.
|
|
Quarterly Balance Sheets
|
|
|
|
|
|
|
|
For the Quarter Ended
|
|
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
|
|
2009
|
|
2009
|
|
2009
|
|
2008
|
|
2008
|
|
(Unaudited)
|
|
(Dollars In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
51,905
|
|
|
$
|
116,095
|
|
|
$
|
100,881
|
|
|
$
|
39,310
|
|
|
$
|
53,238
|
|
|
Interest-bearing deposits with banks
|
|
|
3,352
|
|
|
|
28,354
|
|
|
|
79
|
|
|
|
7,129
|
|
|
|
664
|
|
|
Securities available for sale
|
|
|
575,800
|
|
|
|
521,879
|
|
|
|
549,664
|
|
|
|
520,723
|
|
|
|
513,001
|
|
|
Securities held to maturity
|
|
|
7,452
|
|
|
|
7,725
|
|
|
|
8,471
|
|
|
|
8,670
|
|
|
|
9,043
|
|
|
Loans held for sale
|
|
|
4,376
|
|
|
|
802
|
|
|
|
1,445
|
|
|
|
1,024
|
|
|
|
140
|
|
|
Loans held for investment, net of unearned income
|
|
|
1,396,617
|
|
|
|
1,269,443
|
|
|
|
1,276,790
|
|
|
|
1,298,159
|
|
|
|
1,168,286
|
|
|
Less allowance for loan losses
|
|
|
17,444
|
|
|
|
16,678
|
|
|
|
16,555
|
|
|
|
15,978
|
|
|
|
14,510
|
|
|
Net loans
|
|
|
1,383,549
|
|
|
|
1,253,568
|
|
|
|
1,261,680
|
|
|
|
1,283,205
|
|
|
|
1,153,916
|
|
|
Premises and equipment
|
|
|
57,695
|
|
|
|
55,193
|
|
|
|
54,893
|
|
|
|
55,024
|
|
|
|
50,504
|
|
|
Other real estate owned
|
|
|
3,955
|
|
|
|
3,615
|
|
|
|
3,114
|
|
|
|
1,326
|
|
|
|
896
|
|
|
Interest receivable
|
|
|
9,046
|
|
|
|
8,934
|
|
|
|
8,848
|
|
|
|
10,084
|
|
|
|
9,156
|
|
|
Intangible assets
|
|
|
90,134
|
|
|
|
89,534
|
|
|
|
89,338
|
|
|
|
89,612
|
|
|
|
72,222
|
|
|
Other assets
|
|
|
115,453
|
|
|
|
118,313
|
|
|
|
122,173
|
|
|
|
118,231
|
|
|
|
104,817
|
|
|
Total Assets
|
|
$
|
2,298,341
|
|
|
$
|
2,203,210
|
|
|
$
|
2,199,141
|
|
|
$
|
2,133,314
|
|
|
$
|
1,967,457
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
|
$
|
198,107
|
|
|
$
|
202,543
|
|
|
$
|
207,947
|
|
|
$
|
199,712
|
|
|
$
|
214,582
|
|
|
Interest-bearing demand
|
|
|
216,184
|
|
|
|
195,905
|
|
|
|
194,934
|
|
|
|
185,117
|
|
|
|
186,403
|
|
|
Savings
|
|
|
351,450
|
|
|
|
311,435
|
|
|
|
319,007
|
|
|
|
309,577
|
|
|
|
312,451
|
|
|
Time
|
|
|
896,716
|
|
|
|
837,475
|
|
|
|
861,556
|
|
|
|
809,352
|
|
|
|
636,108
|
|
|
Total Deposits
|
|
|
1,662,457
|
|
|
|
1,547,358
|
|
|
|
1,583,444
|
|
|
|
1,503,758
|
|
|
|
1,349,544
|
|
|
Interest, taxes and other liabilities
|
|
|
24,374
|
|
|
|
27,630
|
|
|
|
28,293
|
|
|
|
27,423
|
|
|
|
20,494
|
|
|
Federal funds purchased
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
29,500
|
|
|
Securities sold under agreements to repurchase
|
|
|
147,042
|
|
|
|
153,804
|
|
|
|
153,824
|
|
|
|
165,914
|
|
|
|
180,388
|
|
|
FHLB and other indebtedness
|
|
|
198,932
|
|
|
|
190,863
|
|
|
|
215,870
|
|
|
|
215,877
|
|
|
|
216,720
|
|
|
Total Liabilities
|
|
|
2,032,805
|
|
|
|
1,919,655
|
|
|
|
1,981,431
|
|
|
|
1,912,972
|
|
|
|
1,796,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, net of discount
|
|
|
-
|
|
|
|
40,525
|
|
|
|
40,471
|
|
|
|
40,419
|
|
|
|
-
|
|
|
Common stock
|
|
|
18,083
|
|
|
|
17,341
|
|
|
|
12,051
|
|
|
|
12,051
|
|
|
|
11,499
|
|
|
Additional paid-in capital
|
|
|
192,799
|
|
|
|
183,955
|
|
|
|
127,992
|
|
|
|
128,526
|
|
|
|
108,862
|
|
|
Retained earnings
|
|
|
102,920
|
|
|
|
116,997
|
|
|
|
118,021
|
|
|
|
107,231
|
|
|
|
124,731
|
|
|
Treasury stock, at cost
|
|
|
(12,768
|
)
|
|
|
(13,712
|
)
|
|
|
(14,453
|
)
|
|
|
(15,368
|
)
|
|
|
(16,882
|
)
|
|
Accumulated other comprehensive loss
|
|
|
(35,498
|
)
|
|
|
(61,551
|
)
|
|
|
(66,372
|
)
|
|
|
(52,517
|
)
|
|
|
(57,399
|
)
|
|
Total Stockholders' Equity
|
|
|
265,536
|
|
|
|
283,555
|
|
|
|
217,710
|
|
|
|
220,342
|
|
|
|
170,811
|
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
2,298,341
|
|
|
$
|
2,203,210
|
|
|
$
|
2,199,141
|
|
|
$
|
2,133,314
|
|
|
$
|
1,967,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual shares outstanding at period end
|
|
|
17,680,328
|
|
|
|
16,909,592
|
|
|
|
11,596,249
|
|
|
|
11,567,449
|
|
|
|
10,967,597
|
|
|
Book value per common share at period end
|
|
$
|
15.02
|
|
|
$
|
14.31
|
|
|
$
|
15.20
|
|
|
$
|
15.46
|
|
|
$
|
15.57
|
|
|
Tangible book value per common share at period end (1)
|
|
$
|
9.92
|
|
|
$
|
9.02
|
|
|
$
|
7.49
|
|
|
$
|
7.71
|
|
|
$
|
8.99
|
|
|
|
|
|
|
|
|
(1)
|
|
Tangible book value per common share is defined as stockholders'
equity less goodwill and other intangibles divided by common shares
outstanding.
|
|
|
|
|
|
|
|
First Community Bancshares, Inc.
|
|
Selected Financial Information
|
|
|
|
|
|
|
|
As of and for the Quarter Ended
|
|
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
(Unaudited)
|
|
2009
|
|
2009
|
|
2009
|
|
2008
|
|
2008
|
|
Summary of Loan Loss Experience
|
|
(Dollars in Thousands)
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance
|
|
$
|
16,678
|
|
|
$
|
16,555
|
|
|
$
|
15,978
|
|
|
$
|
14,510
|
|
|
$
|
13,433
|
|
|
Balance acquired
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,169
|
|
|
|
-
|
|
|
Provision for loan losses
|
|
|
3,418
|
|
|
|
2,552
|
|
|
|
2,087
|
|
|
|
2,701
|
|
|
|
3,461
|
|
|
Charge-offs
|
|
|
(2,990
|
)
|
|
|
(2,681
|
)
|
|
|
(1,730
|
)
|
|
|
(2,606
|
)
|
|
|
(2,601
|
)
|
|
Recoveries
|
|
|
338
|
|
|
|
252
|
|
|
|
220
|
|
|
|
204
|
|
|
|
217
|
|
|
Net charge-offs
|
|
|
(2,652
|
)
|
|
|
(2,429
|
)
|
|
|
(1,510
|
)
|
|
|
(2,402
|
)
|
|
|
(2,384
|
)
|
|
Ending balance
|
|
$
|
17,444
|
|
|
$
|
16,678
|
|
|
$
|
16,555
|
|
|
$
|
15,978
|
|
|
$
|
14,510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Asset Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
|
|
$
|
12,278
|
|
|
$
|
11,645
|
|
|
$
|
10,628
|
|
|
$
|
12,763
|
|
|
$
|
6,997
|
|
|
Loans 90 days or more past due and still accruing
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Total non-performing loans
|
|
|
12,278
|
|
|
|
11,645
|
|
|
|
10,628
|
|
|
|
12,763
|
|
|
|
6,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate owned
|
|
|
3,955
|
|
|
|
3,615
|
|
|
|
3,114
|
|
|
|
1,326
|
|
|
|
896
|
|
|
Total non-performing assets
|
|
$
|
16,233
|
|
|
$
|
15,260
|
|
|
$
|
13,742
|
|
|
$
|
14,089
|
|
|
$
|
7,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans as a percentage of loans held for investment
|
|
|
0.88
|
%
|
|
|
0.92
|
%
|
|
|
0.83
|
%
|
|
|
0.98
|
%
|
|
|
0.60
|
%
|
|
Non-performing assets as a percentage of total assets
|
|
|
0.71
|
%
|
|
|
0.69
|
%
|
|
|
0.62
|
%
|
|
|
0.66
|
%
|
|
|
0.40
|
%
|
|
Annualized net charge-offs as a percentage of average loans held
for investment
|
|
|
0.77
|
%
|
|
|
0.77
|
%
|
|
|
0.47
|
%
|
|
|
0.77
|
%
|
|
|
0.81
|
%
|
|
Allowance for loan losses as a percentage of loans held for
investment
|
|
|
1.25
|
%
|
|
|
1.31
|
%
|
|
|
1.30
|
%
|
|
|
1.23
|
%
|
|
|
1.24
|
%
|
|
Ratio of allowance for loan losses to non-performing loans
|
|
|
1.42
|
|
|
|
1.43
|
|
|
|
1.56
|
|
|
|
1.25
|
|
|
|
2.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Community Bancshares, Inc.
|
|
Nonaccrual Loan Detail
|
|
|
|
|
|
(Unaudited)
|
|
As of September 30, 2009
|
|
|
|
|
|
|
|
|
|
Nonaccrual
|
|
|
|
|
|
|
|
|
|
Loans to
|
|
|
|
Loans
|
|
Nonaccrual
|
|
Loans
|
|
(Dollars in Thousands)
|
|
Outstanding
|
|
Loans
|
|
Outstanding
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
Commercial & industrial
|
|
$
|
90,015
|
|
$
|
454
|
|
0.50
|
%
|
|
Agriculture
|
|
|
1,033
|
|
|
185
|
|
17.95
|
%
|
|
Total commercial
|
|
|
91,048
|
|
|
639
|
|
0.70
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
Construction, land development & vacant land
|
|
|
137,750
|
|
|
2,078
|
|
1.51
|
%
|
|
Non-owner occupied
|
|
|
176,029
|
|
|
1,934
|
|
1.10
|
%
|
|
Owner occupied
|
|
|
164,193
|
|
|
2,296
|
|
1.40
|
%
|
|
Farmland
|
|
|
39,159
|
|
|
68
|
|
0.17
|
%
|
|
Total commercial real estate
|
|
|
517,131
|
|
|
6,376
|
|
1.23
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
|
|
|
62,995
|
|
|
157
|
|
0.25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
|
543,689
|
|
|
4,736
|
|
0.87
|
%
|
|
Multi-family
|
|
|
73,289
|
|
|
-
|
|
0.00
|
%
|
|
Home equity lines
|
|
|
108,466
|
|
|
369
|
|
0.34
|
%
|
|
Total residential
|
|
|
725,444
|
|
|
5,105
|
|
0.70
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
1,396,618
|
|
$
|
12,278
|
|
0.88
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pooled Trust Preferred Securities Detail
|
|
September 30, 2009
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Unrealized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
|
|
Current
|
|
|
|
|
|
Class/
|
|
Par
|
|
Book
|
|
Fair
|
|
Recognized
|
|
Quarter
|
|
Cumulative
|
|
Deal Name
|
|
Tranche
|
|
Value
|
|
Value
|
|
Value
|
|
In OCI
|
|
OTTI
|
|
OTTI
|
|
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PreTSL X
|
|
B1
|
|
$
|
10,028
|
|
$
|
5,697
|
|
$
|
2,967
|
|
$
|
(2,730
|
)
|
|
$
|
3,110
|
|
$
|
4,331
|
|
PreTSL XII
|
|
B1
|
|
|
20,114
|
|
|
12,685
|
|
|
8,016
|
|
|
(4,669
|
)
|
|
|
6,980
|
|
|
7,429
|
|
PreTSL XIV
|
|
B1
|
|
|
9,000
|
|
|
8,890
|
|
|
4,650
|
|
|
(4,240
|
)
|
|
|
110
|
|
|
110
|
|
PreTSL XVI
|
|
C
|
|
|
4,039
|
|
|
1,639
|
|
|
838
|
|
|
(801
|
)
|
|
|
2,403
|
|
|
2,402
|
|
PreTSL XXII
|
|
C1
|
|
|
12,624
|
|
|
10,050
|
|
|
2,575
|
|
|
(7,475
|
)
|
|
|
2,628
|
|
|
2,628
|
|
PreTSL XXIII
|
|
C1
|
|
|
7,923
|
|
|
7,964
|
|
|
2,811
|
|
|
(5,153
|
)
|
|
|
-
|
|
|
-
|
|
PreTSL XXVI
|
|
C1
|
|
|
7,010
|
|
|
6,102
|
|
|
1,194
|
|
|
(4,908
|
)
|
|
|
908
|
|
|
908
|
|
SOLOSO 2007 1A
|
|
A3L
|
|
|
18,400
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
1,244
|
|
|
18,400
|
|
Trapeza Ser 13A
|
|
D
|
|
|
20,233
|
|
|
7,089
|
|
|
51
|
|
|
(7,038
|
)
|
|
|
13,144
|
|
|
13,144
|
|
|
|
|
|
$
|
109,371
|
|
$
|
60,116
|
|
$
|
23,102
|
|
$
|
(37,014
|
)
|
|
$
|
30,527
|
|
$
|
49,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Community Bancshares, Inc.
|
|
Selected Financial Information
|
|
|
|
|
|
|
|
As of and for the Quarter Ended
|
|
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
(Unaudited)
|
|
2009
|
|
2009
|
|
2009
|
|
2008
|
|
2008
|
|
|
|
(Dollars in Thousands)
|
|
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
|
|
-2.15
|
%
|
|
|
0.34
|
%
|
|
|
0.87
|
%
|
|
|
-2.77
|
%
|
|
|
0.90
|
%
|
|
Return on average common equity
|
|
|
-18.78
|
%
|
|
|
3.82
|
%
|
|
|
10.61
|
%
|
|
|
-33.28
|
%
|
|
|
9.39
|
%
|
|
Net interest margin
|
|
|
3.68
|
%
|
|
|
3.62
|
%
|
|
|
3.73
|
%
|
|
|
3.93
|
%
|
|
|
3.90
|
%
|
|
Efficiency ratio for the quarter
|
|
|
59.40
|
%
|
|
|
58.62
|
%
|
|
|
58.25
|
%
|
|
|
57.97
|
%
|
|
|
56.62
|
%
|
|
Efficiency ratio year-to-date
|
|
|
58.37
|
%
|
|
|
58.43
|
%
|
|
|
58.25
|
%
|
|
|
57.54
|
%
|
|
|
57.39
|
%
|
|
Equity as a percent of total assets at end of period
|
|
|
11.55
|
%
|
|
|
12.87
|
%
|
|
|
9.90
|
%
|
|
|
10.33
|
%
|
|
|
8.68
|
%
|
|
Average earning assets as a percentage of average total assets
|
|
|
87.14
|
%
|
|
|
86.78
|
%
|
|
|
86.68
|
%
|
|
|
86.38
|
%
|
|
|
87.89
|
%
|
|
Average loans as a percentage of average deposits
|
|
|
83.25
|
%
|
|
|
81.19
|
%
|
|
|
82.83
|
%
|
|
|
86.01
|
%
|
|
|
88.25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
$
|
536,485
|
|
|
$
|
564,934
|
|
|
$
|
521,776
|
|
|
$
|
508,289
|
|
|
$
|
582,605
|
|
|
Loans
|
|
|
1,362,603
|
|
|
|
1,269,584
|
|
|
|
1,292,179
|
|
|
|
1,235,023
|
|
|
|
1,174,855
|
|
|
Earning assets
|
|
|
1,978,626
|
|
|
|
1,892,403
|
|
|
|
1,887,583
|
|
|
|
1,768,113
|
|
|
|
1,758,895
|
|
|
Total assets
|
|
|
2,270,592
|
|
|
|
2,180,779
|
|
|
|
2,177,762
|
|
|
|
2,046,879
|
|
|
|
2,001,191
|
|
|
Deposits
|
|
|
1,636,744
|
|
|
|
1,563,640
|
|
|
|
1,560,109
|
|
|
|
1,435,956
|
|
|
|
1,331,293
|
|
|
Interest-bearing deposits
|
|
|
1,437,763
|
|
|
|
1,361,970
|
|
|
|
1,360,798
|
|
|
|
1,230,547
|
|
|
|
1,120,138
|
|
|
Borrowings
|
|
|
347,292
|
|
|
|
359,628
|
|
|
|
372,282
|
|
|
|
400,393
|
|
|
|
459,475
|
|
|
Interest-bearing liabilities
|
|
|
1,785,055
|
|
|
|
1,721,597
|
|
|
|
1,733,080
|
|
|
|
1,630,940
|
|
|
|
1,579,613
|
|
|
Equity
|
|
|
260,126
|
|
|
|
233,093
|
|
|
|
219,653
|
|
|
|
189,122
|
|
|
|
192,743
|
|
|
Tax equivalent net interest income
|
|
|
18,329
|
|
|
|
17,093
|
|
|
|
17,349
|
|
|
|
17,483
|
|
|
|
17,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Community Bancshares, Inc.
|
|
Consolidated Average Balance Sheets, Yields, and Rates
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
Yield/
|
|
|
|
|
|
Yield/
|
|
|
|
Average
|
|
Interest
|
|
Rate
|
|
Average
|
|
Interest
|
|
Rate
|
|
(Unaudited)
|
|
Balance
|
|
(1)
|
|
(1)
|
|
Balance
|
|
(1)
|
|
(1)
|
|
|
|
(Dollars in Thousands)
|
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for investment (2)
|
|
$
|
1,362,603
|
|
$
|
21,078
|
|
|
6.14
|
%
|
|
$
|
1,174,855
|
|
$
|
19,286
|
|
|
6.53
|
%
|
|
Securities available for sale
|
|
|
536,485
|
|
|
6,636
|
|
|
4.91
|
%
|
|
|
573,046
|
|
|
8,035
|
|
|
5.58
|
%
|
|
Held to maturity securities
|
|
|
7,575
|
|
|
154
|
|
|
8.07
|
%
|
|
|
9,559
|
|
|
161
|
|
|
6.70
|
%
|
|
Interest-bearing deposits with banks
|
|
|
71,963
|
|
|
55
|
|
|
0.30
|
%
|
|
|
1,435
|
|
|
9
|
|
|
2.50
|
%
|
|
Total earning assets
|
|
|
1,978,626
|
|
$
|
27,923
|
|
|
5.60
|
%
|
|
|
1,758,895
|
|
$
|
27,491
|
|
|
6.22
|
%
|
|
Other assets
|
|
|
291,966
|
|
|
|
|
|
|
|
|
|
242,296
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
2,270,592
|
|
|
|
|
|
|
|
|
$
|
2,001,191
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
|
$
|
209,569
|
|
$
|
110
|
|
|
0.21
|
%
|
|
$
|
178,632
|
|
$
|
73
|
|
|
0.16
|
%
|
|
Savings deposits
|
|
|
339,601
|
|
|
639
|
|
|
0.75
|
%
|
|
|
309,364
|
|
|
1,172
|
|
|
1.51
|
%
|
|
Time deposits
|
|
|
888,593
|
|
|
6,249
|
|
|
2.79
|
%
|
|
|
632,142
|
|
|
5,439
|
|
|
3.42
|
%
|
|
Fed funds purchased
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
42,702
|
|
|
251
|
|
|
2.34
|
%
|
|
Retail repurchase agreements
|
|
|
101,065
|
|
|
333
|
|
|
1.31
|
%
|
|
|
149,984
|
|
|
730
|
|
|
1.94
|
%
|
|
Wholesale repurchase agreements
|
|
|
50,000
|
|
|
474
|
|
|
3.76
|
%
|
|
|
50,000
|
|
|
389
|
|
|
3.10
|
%
|
|
FHLB borrowings & other long-term debt
|
|
|
196,227
|
|
|
1,789
|
|
|
3.62
|
%
|
|
|
216,789
|
|
|
2,173
|
|
|
3.99
|
%
|
|
Total interest-bearing liabilities
|
|
|
1,785,055
|
|
|
9,594
|
|
|
2.13
|
%
|
|
|
1,579,613
|
|
|
10,227
|
|
|
2.58
|
%
|
|
Noninterest-bearing demand deposits
|
|
|
198,981
|
|
|
|
|
|
|
|
|
|
211,155
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
26,430
|
|
|
|
|
|
|
|
|
|
17,680
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
260,126
|
|
|
|
|
|
|
|
|
|
192,743
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
2,270,592
|
|
|
|
|
|
|
|
|
$
|
2,001,191
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
|
|
$
|
18,329
|
|
|
|
|
|
|
|
|
$
|
17,264
|
|
|
|
|
|
Net interest rate spread (3)
|
|
|
|
|
|
|
|
|
3.47
|
%
|
|
|
|
|
|
|
|
|
3.64
|
%
|
|
Net interest margin (4)
|
|
|
|
|
|
|
|
|
3.68
|
%
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
First Community Bancshares, Inc.
|
|
Consolidated Average Balance Sheets, Yields, and Rates
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
Yield/
|
|
|
|
|
|
Yield/
|
|
|
|
Average
|
|
Interest
|
|
Rate
|
|
Average
|
|
Interest
|
|
Rate
|
|
(Unaudited)
|
|
Balance
|
|
(1)
|
|
(1)
|
|
Balance
|
|
(1)
|
|
(1)
|
|
|
|
(Dollars in Thousands)
|
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for investment (2)
|
|
$
|
1,308,380
|
|
$
|
60,662
|
|
|
6.20
|
%
|
|
$
|
1,187,006
|
|
$
|
60,456
|
|
|
6.80
|
%
|
|
Securities available for sale
|
|
|
535,710
|
|
|
21,377
|
|
|
5.34
|
%
|
|
|
602,802
|
|
|
25,310
|
|
|
5.61
|
%
|
|
Held to maturity securities
|
|
|
7,954
|
|
|
490
|
|
|
8.24
|
%
|
|
|
10,849
|
|
|
675
|
|
|
8.31
|
%
|
|
Interest-bearing deposits with banks
|
|
|
67,819
|
|
|
133
|
|
|
0.26
|
%
|
|
|
12,363
|
|
|
260
|
|
|
2.81
|
%
|
|
Total earning assets
|
|
|
1,919,863
|
|
$
|
82,662
|
|
|
5.76
|
%
|
|
|
1,813,020
|
|
$
|
86,701
|
|
|
6.39
|
%
|
|
Other assets
|
|
|
290,180
|
|
|
|
|
|
|
|
|
|
232,933
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
2,210,043
|
|
|
|
|
|
|
|
|
$
|
2,045,953
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
|
$
|
199,235
|
|
$
|
270
|
|
|
0.18
|
%
|
|
$
|
171,661
|
|
$
|
213
|
|
|
0.17
|
%
|
|
Savings deposits
|
|
|
323,387
|
|
|
1,835
|
|
|
0.76
|
%
|
|
|
314,903
|
|
|
3,847
|
|
|
1.63
|
%
|
|
Time deposits
|
|
|
864,503
|
|
|
19,535
|
|
|
3.02
|
%
|
|
|
648,282
|
|
|
18,483
|
|
|
3.81
|
%
|
|
Fed funds purchased
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
18,241
|
|
|
330
|
|
|
2.42
|
%
|
|
Retail repurchase agreements
|
|
|
103,000
|
|
|
1,056
|
|
|
1.37
|
%
|
|
|
151,107
|
|
|
2,540
|
|
|
2.25
|
%
|
|
Wholesale repurchase agreements
|
|
|
50,000
|
|
|
1,449
|
|
|
3.87
|
%
|
|
|
50,000
|
|
|
1,077
|
|
|
2.88
|
%
|
|
FHLB borrowings & other long-term debt
|
|
|
206,643
|
|
|
5,745
|
|
|
3.72
|
%
|
|
|
252,520
|
|
|
7,732
|
|
|
4.09
|
%
|
|
Total interest-bearing liabilities
|
|
|
1,746,768
|
|
|
29,890
|
|
|
2.29
|
%
|
|
|
1,606,714
|
|
|
34,222
|
|
|
2.85
|
%
|
|
Noninterest-bearing demand deposits
|
|
|
199,986
|
|
|
|
|
|
|
|
|
|
213,934
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
25,517
|
|
|
|
|
|
|
|
|
|
19,326
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
237,772
|
|
|
|
|
|
|
|
|
|
205,979
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
2,210,043
|
|
|
|
|
|
|
|
|
$
|
2,045,953
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
|
|
$
|
52,772
|
|
|
|
|
|
|
|
|
$
|
52,479
|
|
|
|
|
|
Net interest rate spread (3)
|
|
|
|
|
|
|
|
|
3.47
|
%
|
|
|
|
|
|
|
|
|
3.54
|
%
|
|
Net interest margin (4)
|
|
|
|
|
|
|
|
|
3.68
|
%
|
|
|
|
|
|
|
|
|
3.87
|
|
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