This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

First Community Bancshares, Inc. Announces Fourth Quarter And Full Year 2012 Results And Quarterly Cash Dividend To Common Stockholders

Non-GAAP Financial Measures

The Company prepares its financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). This press release also refers to certain non-GAAP financial measures that the Company believes provide investors with important information, when used in conjunction with results presented in accordance with GAAP, regarding our operational performance.

Core earnings are a non-GAAP financial measure that excludes certain items from net income. Excluded items include gains, losses, and impairment losses on securities; goodwill and intangible impairment; amortization of intangibles; taxes; and other nonrecurring income and expense items. Management believes that core earnings provide the Company and investors a valuable tool to evaluate the Company's financial results.

The efficiency ratio is a non-GAAP financial measure that is computed by dividing adjusted noninterest expense by the sum of tax equivalent net interest income and adjusted noninterest income. Management believes this measure provides investors with important information about the Company's operating expense control and efficiency of operations. Management also believes this ratio focuses attention on the core operating performance of the Company over time and is highly useful in comparing period-to-period operating performance of core business operations. The efficiency ratio used by the Company may not be comparable to efficiency ratios reported by other financial institutions.

Tangible book value per common share is a non-GAAP financial measure that is defined as stockholders' equity less goodwill and other intangibles, divided by as-converted common shares outstanding. Average tangible common equity is a non-GAAP financial measure that is defined as average stockholders' equity less average goodwill, other intangibles, and the preferred liquidation preference.

Investor Relations

The Company will host an investor and media teleconference and webcast on Friday, February 1, 2013, at 11:00 a.m. To access the teleconference, the toll-free number is (877) 407-8033. Individuals may listen to the live or archived webcast of the conference call. To listen to the webcast, visit www.fcbinc.com and follow the link under the Investor Relations section. The Company's press release and financial summary will be available in this section, as well. Copies of the Company's fourth quarter 2012 earnings press release and financial summary will be made available upon request via fax, email, or postal service mail. To request a copy, contact David D. Brown, Chief Financial Officer, at (276) 326-9000.

About First Community Bancshares, Inc.

First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a $2.73 billion financial holding company and the parent company of First Community Bank. First Community Bank operates seventy-two banking locations throughout Virginia, West Virginia, North Carolina, South Carolina, and Tennessee. First Community Bank offers wealth management and investment services through its Trust Division and First Community Wealth Management, a registered investment advisory firm. The Trust Division and First Community Wealth Management managed assets with a market value of $876 million as of December 31, 2012. The Company is also the parent company of Greenpoint Insurance Group, Inc., a full-service insurance agency headquartered in High Point, North Carolina, that operates six insurance offices throughout Virginia, West Virginia, and North Carolina. The Company's common stock is traded on the NASDAQ Global Select Market under the symbol, "FCBC." Additional investor information can be found on the Company's website at www.fcbinc.com .

The First Community Bancshares, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6960

This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company's Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent year ended. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

FIRST COMMUNITY BANCSHARES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
         
  Three Months Ended December 31, Year Ended December 31,
(Amounts in thousands, except share and per share data) 2012 2011 2012 2011
Interest income        
Interest and fees on loans held for investment  $ 28,188  $ 19,947  $ 96,684  $ 80,580
Interest on securities --- taxable  1,770  2,023  7,830  8,117
Interest on securities --- nontaxable  1,216  1,190  4,883  5,194
Interest on deposits in banks  82  41  259  285
Total interest income  31,256  23,201  109,656  94,176
Interest expense        
Interest on deposits  2,604  2,637  9,972  12,788
Interest on short-term borrowings  656  603  2,515  2,475
Interest on long-term borrowings  1,860  1,695  7,113  6,884
Total interest expense  5,120  4,935  19,600  22,147
Net interest income  26,136  18,266  90,056  72,029
Provision for loan losses  1,220  2,436  5,678  9,047
Net interest income after provision for loan losses  24,916  15,830  84,378  62,982
Noninterest income        
Wealth management income  862  818  3,701  3,510
Service charges on deposit accounts  3,826  3,450  14,063  13,238
Other service charges and fees  1,682  1,429  6,462  5,722
Insurance commissions  1,215  1,170  5,743  6,197
Net impairment losses recognized in earnings  --  (1,548)  (942)  (2,285)
Net gain on sale of securities  316  26  586  5,264
Other operating income  346  1,261  6,131  3,888
Total noninterest income   8,247  6,606  35,744  35,534
Noninterest expense        
Salaries and employee benefits  10,693  7,903  38,667  34,126
Occupancy expense of bank premises  1,938  1,589  6,872  6,280
Furniture and equipment   1,404  804  4,145  3,490
Amortization of intangible assets  191  250  804  1,020
FDIC premiums and assessments  313  344  1,536  1,984
FHLB debt prepayment fees  --  --  --  471
Merger related expense  857  --  5,084  --
Goodwill impairment  --  1,239  --  1,239
Other operating expense  5,371  4,925  20,309  20,305
Total noninterest expense  20,767  17,054  77,417  68,915
Income before income taxes  12,396  5,382  42,705  29,601
Income tax expense  3,957  2,151  14,128  9,573
Net income   8,439  3,231  28,577  20,028
Dividends on preferred stock  272  286  1,058  703
Net income available to common shareholders  $ 8,167  $ 2,945  $ 27,519  $ 19,325
         
Basic earnings per common share   $ 0.41  $ 0.16  $ 1.44  $ 1.08
Diluted earnings per common share   $ 0.39  $ 0.17  $ 1.40  $ 1.07
Cash dividends per common share  $ 0.11  $ 0.10  $ 0.43  $ 0.40
         
Weighted average basic shares outstanding  20,058,998  17,849,286  19,125,839  17,877,421
Weighted average diluted shares outstanding  21,373,669  19,159,090  20,480,172  18,691,081
         
Return on average assets 1.19% 0.54% 1.10% 0.88%
Return on average common equity 9.59% 4.06% 8.70% 6.81%
 
FIRST COMMUNITY BANCSHARES, INC.
CONDENSED QUARTERLY STATEMENTS OF INCOME (Unaudited)
           
   As of and for the Quarter Ended
(Amounts in thousands, except share and per share data) December 31, 2012 September 30, 2012 June 30, 2012 March 31, 2012 December 31, 2011
Interest Income          
Interest and fees on loans held for investment  $ 28,188  $ 28,275  $ 20,853  $ 19,368  $ 19,947
Interest on securities --- taxable  1,770  1,980  2,001  2,079  2,023
Interest on securities --- nontaxable  1,216  1,215  1,256  1,196  1,190
Interest on deposits in banks  82  66  72  39  41
Total interest income  31,256  31,536  24,182  22,682  23,201
Interest Expense          
Interest on deposits  2,604  2,603  2,360  2,405  2,637
Interest on short-term borrowings  656  675  589  595  592
Interest on long-term borrowings  1,860  1,799  1,749  1,705  1,706
Total interest expense  5,120  5,077  4,698  4,705  4,935
Net interest income  26,136  26,459  19,484  17,977  18,266
Provision for loan losses  1,220  1,916  1,620  922  2,436
Net interest income after provision for loan losses  24,916  24,543  17,864  17,055  15,830
Noninterest Income          
Wealth management income  862  1,005  940  894  818
Service charges on deposit accounts  3,826  3,895  3,329  3,013  3,450
Other service charges and fees  1,682  1,631  1,564  1,585  1,429
Insurance commissions  1,215  1,616  1,336  1,576  1,170
Net impairment losses recognized in earnings  --  (942)  --  --  (1,548)
Net gain (loss) on sale of securities  316  228  (9)  51  26
Other operating income  346  3,730  1,183  872  1,261
Total noninterest income   8,247  11,163  8,343  7,991  6,606
Noninterest Expense          
Salaries and employee benefits  10,693  10,860  8,892  8,222  7,903
Occupancy expense of bank premises  1,938  1,754  1,654  1,526  1,589
Furniture and equipment  1,404  955  975  811  804
Amortization of intangible assets  191  191  189  233  250
FDIC premiums and assessments   313  611  290  322  344
Merger related expense  857  645  3,419  163  -- 
Goodwill impairment  --  --  --  --  1,239
Other operating expense  5,371  5,309  4,713  4,916  4,925
Total noninterest expense  20,767  20,325  20,132  16,193  17,054
Income before income taxes  12,396  15,381  6,075  8,853  5,382
Income tax expense  3,958  5,322  1,997  2,852  2,151
Net income   8,438  10,059  4,078  6,001  3,231
Dividends on preferred stock  272  220  283  283  286
Net income available to common shareholders  $ 8,166  $ 9,839  $ 3,795  $ 5,718  $ 2,945
           
Basic earnings per common share  $ 0.41  $ 0.49  $ 0.20  $ 0.32  $ 0.16
Diluted earnings per common share  $ 0.39  $ 0.47  $ 0.20  $ 0.31  $ 0.17
Cash dividends per common share  $ 0.11  $ 0.11  $ 0.11  $ 0.10  $ 0.10
           
Weighted average basic shares outstanding  20,058,998  20,013,264  18,561,714  17,849,376  17,849,286
Weighted average diluted shares outstanding  21,373,669  21,476,497  19,909,242  19,189,923  19,159,090
 
FIRST COMMUNITY BANCSHARES, INC.
RECONCILIATION OF GAAP NET INCOME TO CORE EARNINGS (Unaudited)
         
  Three Months Ended December 31, Year Ended December 31,
  2012 2011 2012 2011
(Amounts in thousands, except per share data)        
Net income, GAAP  $ 8,439  $ 3,231  $ 28,577  $ 20,028
Non-GAAP adjustments:        
Net impairment losses recognized in earnings  --  1,548  942  2,285
Net gain on sale of securities  (316)  (26)  (586)  (5,264)
FHLB debt prepayment fees  --  --  --  471
Merger related expense  857  --  5,084  --
Goodwill impairment  --  1,239  --  1,239
Prospective correction of prior period understatement  --  --  (2,395)  --
Other noncore, nonrecurring items  --  --  --  59
Total adjustments to core earnings  541  2,761  3,045  (1,210)
Tax effect   204  1,035  1,151  (454)
Core earnings, non-GAAP  $ 8,776  $ 4,957  $ 30,471  $ 19,272
         
Core return on average assets 1.28% 0.91% 1.21% 0.88%
Core return on average common equity 10.30% 6.83% 9.63% 6.79%
Core return on average tangible common equity 15.10% 9.85% 13.95% 9.92%
Core diluted earnings per common share $0.41 $0.26 $1.49 $1.03
 
FIRST COMMUNITY BANCSHARES, INC.
EFFICIENCY RATIO CALCULATION (Unaudited)
         
  Three Months Ended December 31, Year Ended December 31,
  2012 2011 2012 2011
(Amounts in thousands)        
Noninterest expense, GAAP  $ 20,767  $ 17,054  $ 77,417  $ 68,915
Non-GAAP adjustments:        
FHLB debt prepayment fees  --  --  --  (471)
Merger related expenses  (857)  --  (5,084)  --
Goodwill impairment  --  (1,239)  --  (1,239)
OREO expense and net loss  (312)  (455)  (1,893)  (3,081)
Other noncore, nonreccuring items  --  --  --  (77)
Adjusted noninterest expense  19,598  15,360  70,440  64,047
         
Net interest income, GAAP  26,136  18,266  90,056  72,029
Noninterest income, GAAP  8,247  6,606  35,744  35,534
Non-GAAP adjustments:        
Tax equivalency adjustment  696  681  2,747  2,959
Net impairment losses recognized in earnings  --  1,548  942  2,285
Net gain on sale of securities  (316)  (26)  (586)  (5,264)
Prospective correction of prior period understatement  --  --  (2,395)  --
Other noncore, nonreccuring items  --  --  --  (18)
Adjusted net interest and noninterest income  34,763  27,075  126,508  107,525
         
Efficiency Ratio 56.38% 56.73% 55.68% 59.56%
 
FIRST COMMUNITY BANCSHARES, INC.
CONDENSED QUARTERLY BALANCE SHEETS (Unaudited)
           
   For the Quarter Ended
  December 31, 2012 September 30, 2012 June 30, 2012 March 31, 2012 December 31, 2011
(Amounts in thousands)          
Cash and due from banks  $ 50,405  $ 44,865  $ 54,494  $ 36,555  $ 34,578
Federal funds sold  66,509  93,005  64,815  61,328  1,909
Interest-bearing deposits in banks  27,933  27,359  36,856  11,729  10,807
Total cash and cash equivalents  144,847  165,229  156,165  109,612  47,294
Securities available-for-sale   534,358  517,161  526,607  478,352  482,430
Securities held-to-maturity   816  816  1,295  2,874  3,490
Loans held for sale  6,672  4,446  1,179  3,522  5,820
Loans held for investment, net of unearned income:          
Covered under loss share agreements  207,869  221,977  238,777  --  --
Not covered under loss share agreements  1,516,574  1,541,633  1,568,312  1,386,525  1,396,067
Less allowance for loan losses  25,770  25,835  26,171  25,800  26,205
Loans, net  1,705,345  1,742,221  1,782,097  1,364,247  1,375,682
FDIC receivable under loss share agreements  48,073  49,477  52,067  --  --
Property, plant, and equipment, net  64,868  62,191  60,829  54,616  54,721
Other real estate owned:          
Covered under loss share agreements  3,255  3,553  5,325  --  --
Not covered under loss share agreements  5,749  5,957  4,938  3,829  5,914
Interest receivable  5,864  6,038  8,396  5,886  6,193
Goodwill  107,054  104,022  99,402  83,056  83,056
Intangible assets  3,522  3,713  3,903  4,093  4,326
Other assets  107,346  109,272  109,297  96,704  101,683
Total assets  $ 2,731,097  $2,769,650  $2,810,321  $2,203,269  $2,164,789
           
Deposits:          
Noninterest-bearing   $ 343,352  $ 335,100  $ 340,895  $ 253,352  $ 240,268
Interest-bearing   353,321  360,061  335,686  307,136  275,156
Savings  500,276  496,740  494,516  397,850  394,707
Time  833,226  872,059  934,110  621,412  633,336
Total deposits  2,030,175  2,063,960  2,105,207  1,579,750  1,543,467
Interest, taxes, and other liabilities  30,896  29,538  22,465  23,203  20,452
Securities sold under agreements to repurchase  136,118  146,904  148,367  124,266  129,208
FHLB advances  161,558  161,558  176,653  150,000  150,000
Other borrowings  15,877  15,877  15,918  15,925  15,933
Total liabilities  2,374,624  2,417,837  2,468,610  1,893,144  1,859,060
           
Preferred stock  17,421  17,921  18,921  18,921  18,921
Common stock  20,343  20,309  20,240  18,083  18,083
Additional paid-in capital  213,829  213,320  212,510  188,149  188,118
Retained earnings  113,013  107,055  99,418  97,588  93,656
Treasury stock, at cost  (6,458)  (5,446)  (5,672)  (5,721)  (5,721)
Accumulated other comprehensive loss  (1,675)  (1,346)  (3,706)  (6,895)  (7,328)
Total stockholders' equity  356,473  351,813  341,711  310,125  305,729
Total liabilities and stockholders' equity  $ 2,731,097  $ 2,769,650  $ 2,810,321  $ 2,203,269  $ 2,164,789
           
Shares outstanding at period end  20,018,966  20,086,404  20,008,181  17,849,376  17,849,376
Book value per common share at period end (1)  $ 16.80  $ 16.50  $ 16.03  $ 16.19  $ 15.96
Tangible book value per common share at period end (2)  $ 11.59  $ 11.45  $ 11.19  $ 11.64  $ 11.40
           
           
(1) Book value per common share is defined as stockholders' equity divided by as-converted common shares outstanding.    
(2) Tangible book value per common share is defined as stockholders' equity less goodwill and other intangibles divided by as-converted common shares outstanding.
 
FIRST COMMUNITY BANCSHARES, INC.
SELECTED CREDIT QUALITY INFORMATION (Unaudited)
           
  As of and for the Quarter Ended
(Amounts in thousands) December 31, 2012 September 30, 2012 June 30, 2012 March 31, 2012 December 31, 2011
Allowance for Loan Losses on Non-covered Loans          
Beginning balance  $ 25,835  $ 26,171  $ 25,800  $ 26,205  $ 26,407
Provision for loan losses  1,220  1,916  1,620  922  2,436
Charge-offs  (1,717)  (2,613)  (1,613)  (1,562)  (2,915)
Recoveries  432  361  364  235  277
Net charge-offs  (1,285)  (2,252)  (1,249)  (1,327)  (2,638)
Ending balance  $ 25,770  $ 25,835  $ 26,171  $ 25,800  $ 26,205
           
Summary of Asset Quality          
Non-covered loans          
Nonaccrual loans   $ 23,931  $ 26,514  $ 27,947  $ 24,617  $ 24,487
Accruing loans past due 90 days or more  --  --  --  --  --
Troubled debt restructurings ("TDRs") (1)  4,734  121  469  2,668  600
Total non-covered nonperforming loans  28,665  26,635  28,416  27,285  25,087
Other real estate owned ("OREO") not covered under FDIC loss share agreements  5,749  5,957  4,938  3,829  5,914
Total non-covered nonperforming assets  $ 34,414  $ 32,592  $ 33,354  $ 31,114  $ 31,001
Covered Loans          
Nonaccrual loans   $ 4,323  $ 2,849  $ --  $ --  $ --
Accruing loans past due 90 days or more  --  --  --  --  --
Total covered nonperforming loans  4,323  2,849  --  --  --
OREO covered under FDIC loss share agreements  3,255  3,553  5,325  --  --
Total covered nonperforming assets  7,578  6,402  5,325  --  --
Total nonperforming assets  $ 41,992  $ 38,994  $ 38,679  $ 31,114  $ 31,001
           
Performing TDRs (2)  $ 6,038  $ 6,742  $ 6,995  $ 7,052  $ 8,854
Total TDRs (3)  $ 10,772  $ 6,863  $ 7,464  $ 9,720  $ 9,454
           
Asset Quality Ratios          
Excluding covered assets           
Nonperforming loans to total loans 1.89% 1.73% 1.81% 1.97% 1.80%
Nonperforming assets to total assets 1.37% 1.28% 1.30% 1.41% 1.43%
Allowance for loan losses to nonperforming loans 89.90% 97.00% 92.10% 94.56% 104.46%
Allowance for loan losses to non-covered total loans 1.70% 1.68% 1.67% 1.86% 1.88%
Annualized net charge-offs to average loans 0.33% 0.57% 0.38% 0.38% 0.76%
Including covered assets          
Nonperforming loans to total loans 1.91% 1.67% 1.57% 1.97% 1.80%
Nonperforming assets to total assets 1.54% 1.41% 1.38% 1.41% 1.43%
Allowance for loan losses to nonperforming loans 78.12% 87.62% 92.10% 94.56% 104.46%
Allowance for loan losses to total loans 1.49% 1.46% 1.45% 1.86% 1.88%
           
           
(1) Accruing TDRs restructured within the past six months          
(2) Accruing TDRs with six months or more of satisfactory payment performance          
(3) Accruing nonperforming and performing TDRs           
 
FIRST COMMUNITY BANCSHARES, INC.
SELECTED FINANCIAL INFORMATION (Unaudited)
           
  As of and for the Quarter Ended
  December 31, 2012 September 30, 2012 June 30, 2012 March 31, 2012 December 31, 2011
Selected Ratios          
Return on average assets 1.19% 1.41% 0.65% 1.06% 0.54%
Return on average common equity 9.59% 11.91% 5.00% 7.88% 4.06%
Net interest margin 4.49% 4.48% 3.93% 3.91% 3.93%
Efficiency ratio for the quarter  56.38% 55.49% 57.58% 57.18% 56.73%
Efficiency ratio year-to-date  55.68% 52.40% 57.38% 57.18% 59.56%
Total equity to total assets  13.05% 12.70% 12.16% 14.08% 14.12%
Average earning assets to average assets 86.87% 87.02% 87.68% 88.24% 88.27%
Average loans to average deposits 85.71% 87.88% 88.57% 89.85% 89.45%
           
(Amounts in thousands)          
Average Balances          
Loans   $ 1,745,584  $ 1,790,489  $ 1,512,451  $ 1,394,246  $ 1,392,650
Investment securities  519,798  528,126  490,219  481,595  479,638
Earning assets  2,376,805  2,408,442  2,069,799  1,918,366  1,913,768
Total assets  2,736,037  2,767,790  2,360,567  2,174,004  2,168,166
Total deposits  2,036,697  2,037,467  1,707,613  1,551,728  1,556,990
Interest-bearing deposits  1,699,991  1,733,987  1,437,548  1,312,865  1,320,186
Borrowings  314,645  329,958  303,474  290,015  295,303
Interest-bearing liabilities  2,014,636  2,063,945  1,741,022  1,602,880  1,615,489
Stockholders' equity  356,812  347,637  323,994  310,795  306,779
Tax equivalent net interest income  26,832  27,139  20,206  18,660  18,947
 
FIRST COMMUNITY BANCSHARES, INC.
AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
             
  Three Months Ended December 31,
  2012 2011
(Amounts in thousands) Average Balance Interest (1) Average Yield/ Rate (1) Average  Balance Interest (1) Average Yield/ Rate (1)
Assets            
Earning assets            
Loans (2)  $ 1,745,584  $ 28,231 6.43%  $ 1,392,650  $ 19,987 5.69%
Securities available-for-sale  518,982  3,623 2.78%  476,244  3,784 3.15%
Securities held-to-maturity  816  16 7.80%  3,394  70 8.18%
Interest-bearing deposits  111,423  82 0.29%  41,480  41 0.39%
Total earning assets  2,376,805  31,952 5.35%  1,913,768  23,882 4.95%
Other assets   359,232      254,398    
Total assets  $ 2,736,037      $ 2,168,166    
             
Liabilities            
Interest-bearing deposits            
Demand deposits   $ 351,329  $ 62 0.07%  $ 277,722  $ 27 0.04%
Savings deposits   495,116  156 0.13%  395,530  117 0.12%
Time deposits  853,546  2,386 1.11%  646,934  2,493 1.53%
Total interest-bearing deposits  1,699,991  2,604 0.61%  1,320,186  2,637 0.79%
Borrowings            
Federal funds purchased  --  -- 0.00%  308  -- 0.00%
Retail repurchase agreements  79,014  105 0.53%  79,114  103 0.52%
Wholesale repurchase agreements  58,196  540 3.69%  50,000  479 3.80%
FHLB advances and other borrowings  177,435  1,871 4.19%  165,881  1,716 4.10%
Total borrowings  314,645  2,516 3.18%  295,303  2,298 3.09%
Total interest-bearing liabilities  2,014,636  5,120 1.01%  1,615,489  4,935 1.21%
Noninterest-bearing demand deposits  336,706      236,804    
Other liabilities  27,883      9,094    
Total liabilities  2,379,225      1,861,387    
Stockholders' equity  356,812      306,779    
Total liabilities and stockholders' equity  $ 2,736,037      $ 2,168,166    
Net interest income, tax equivalent    $ 26,832      $ 18,947  
Net interest rate spread (3)     4.34%     3.74%
Net interest margin (4)     4.49%     3.93%
             
(1) Fully taxable equivalent at the rate of 35% ("FTE"). The FTE basis adjusts for the tax benefits of income on certain tax exempt loans and investments using the federal statutory rate of 35% for each period presented. The Company believes this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and nontaxable amounts.
(2) Nonaccrual loans are included in average balances outstanding, but with no related interest income during the period of nonaccrual.    
(3) Represents the difference between the yield on earning assets and cost of funds.          
(4) Represents tax equivalent net interest income divided by average earning assets.          
 
FIRST COMMUNITY BANCSHARES, INC.
AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
             
  Year Ended December 31,
  2012 2011
(Amounts in thousands) Average  Balance Interest (1) Average Yield/ Rate (1) Average  Balance Interest (1) Average Yield/ Rate (1)
Assets            
Earning assets            
Loans (2)  $ 1,611,557  $ 96,803 6.01%  $ 1,382,097  $ 80,742 5.84%
Securities available-for-sale  502,416  15,170 3.02%  434,583  15,775 3.63%
Securities held-to-maturity  2,622  171 6.52%  3,999  333 8.33%
Interest-bearing deposits  77,851  259 0.33%  116,063  285 0.25%
Total earning assets  2,194,446  112,403 5.12%  1,936,742  97,135 5.02%
Other assets   316,485      258,897    
Total assets  $ 2,510,931      $ 2,195,639    
             
Liabilities            
Interest-bearing deposits            
Demand deposits   $ 306,019  $ 185 0.06%  $ 277,263  $ 431 0.16%
Savings deposits   471,406  556 0.12%  410,240  886 0.22%
Time deposits  776,901  9,231 1.19%  682,997  11,471 1.68%
Total interest-bearing deposits  1,554,326  9,972 0.64%  1,370,500  12,788 0.93%
Borrowings            
Federal funds purchased  490  2 0.41%  77  -- 0.00%
Retail repurchase agreements  78,608  449 0.57%  83,564  544 0.65%
Wholesale repurchase agreements  55,163  2,023 3.67%  50,000  1,887 3.77%
FHLB advances and other borrowings  175,333  7,154 4.08%  168,988  6,928 4.10%
Total borrowings  309,594  9,628 3.11%  302,629  9,359 3.09%
Total interest-bearing liabilities  1,863,920  19,600 1.05%  1,673,129  22,147 1.32%
Noninterest-bearing demand deposits  286,950      223,233    
Other liabilities  25,160      4,127    
Total liabilities  2,176,030      1,900,489    
Stockholders' equity  334,901      295,150    
Total liabilities and stockholders' equity  $ 2,510,931      $ 2,195,639    
Net interest income, tax equivalent    $ 92,803      $ 74,988  
Net interest rate spread (3)     4.07%     3.69%
Net interest margin (4)     4.23%     3.87%
             
(1) Fully taxable equivalent at the rate of 35% ("FTE"). The FTE basis adjusts for the tax benefits of income on certain tax exempt loans and investments using the federal statutory rate of 35% for each period presented. The Company believes this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and nontaxable amounts.
(2) Nonaccrual loans are included in average balances outstanding, but with no related interest income during the period of nonaccrual.        
(3) Represents the difference between the yield on earning assets and cost of funds.            
(4) Represents tax equivalent net interest income divided by average earning assets.            
CONTACT: David D. Brown
         (276) 326-9000

First Community Bancshares, Inc. Logo

5 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7870 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs