Exhibit 99.1
NEWS RELEASE
| | | | | |
| FOR IMMEDIATE RELEASE: | | FOR MORE INFORMATION, |
| October 26, 2005 | | CONTACT:Robert L. Schumacher |
| | | | | (276) 326-9000 |
First Community Bancshares, Inc. Announces Increased Third Quarter Earnings
Bluefield, Virginia – First Community Bancshares, Inc. (NASDAQ): FCBC;(www.fcbinc.com) today reported earnings of $6.9 million for the third quarter of 2005, or $0.61 basic and diluted earnings per share. This compares favorably to, and is a 7.8% increase from, third quarter 2004 earnings of $6.4 million, or $0.57 diluted earnings per share. Net income for the first nine months of 2005 increased 17% to $19.1 million, or $1.68 diluted earnings per share, versus the same period in 2004.
Income from continuing operations for the third quarter of 2005 was also $6.9 million, or $0.61 diluted earnings per share, an increase from $6.6 million, or $0.58 diluted earnings per share, from continuing operations in the third quarter of 2004. Year-to-date income from continuing operations was $19.2 million, or $1.69 per diluted share. Return on average equity from continuing operations for the third quarter of 2005 was 14.28%, compared to 13.24% for the second quarter of 2005. Return on average assets from continuing operations for the third quarter of 2005 was 1.40%, which was an increase compared to the first and second quarters of 2005.
Net interest income for the third quarter of 2005 improved by 5.8%, or $1.0 million, compared to the same period in 2004, due primarily to an increase of $107 million in the average balance of loans held for investment from continuing operations. Year-to-date net interest income grew $3.7 million, or 7.2%, compared to the same period of 2004. Third quarter interest income on loans was $23.3 million, an increase of $3.3 million, or 17%. Year-to-date interest income on loans increased $10.0 million, or 18%, to $66.2 million compared to the same period in 2004.
The growth experienced in loans throughout 2005 is due largely to increases in both the commercial and retail loan portfolios. Commercial loans grew at an annualized rate of 10% through the first nine months of 2005 on loan production of $300 million. The Bank’s de novo branches and loan production offices have contributed $76 million to loan growth in 2005.
Third quarter 2005 tax-equivalent net interest margin from continuing operations remained strong at 4.33%. The third quarter margin is down from 4.51% for the second quarter of 2005, due mostly to the $50 million drawdown of an additional FHLB advance. The new FHLB funding is being used primarily to fund the growth in loans. Tax-equivalent net interest margin from continuing operations for the first nine months of 2005 was 4.43% compared to 4.40% for the first nine months of 2004. The continued strength in the net interest margin can be attributed to the recent increases
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in the prime lending rate, growth in loan portfolio, and the asset-sensitive nature of the balance sheet.
Non-interest income from continuing operations for the third quarter of 2005 improved by $462 thousand, or 10%, compared to the second quarter of 2005. The increase in non-interest income was due mostly to securities gains, but also attributable to continued improvement in the areas of service charges on deposit accounts and all other service charges, commissions and fees. Service charges on deposit accounts increased $37 thousand, or 1.4%. All other service charges, commissions and fees increased $74 thousand, or 8.5%, compared to the second quarter of 2005. Included in other service charges, commissions and fees for the third quarter of 2005 are wealth management fees of $216 thousand. Wealth management revenues grew by $12 thousand, or 5.9%, compared to the second quarter of 2005. Gain on the sale of securities was $536 thousand, compared to $121 thousand in the prior quarter.
Third quarter 2005 non-interest income from continuing operations increased $754 thousand, or 18%, compared to the third quarter of 2004. Compared to the third quarter of 2004, trust services income increased 8.4%, service charges on deposit accounts increased 8.1%, and other service charges, commissions and fees increased 30%.
Total non-interest expense decreased $183 thousand, or 1.4%, compared to the prior quarter. Compared to the third quarter of 2004, non-interest expense increased $881 thousand, or 7.2%. Year-to-date non-interest expense increased $3.5 million to $38.9 million compared to same period of 2004. The increases are the result of the PCB acquisition in March 2004, the Company’s continued expansion through branching and loan production offices, increases in supporting infrastructure, and increased healthcare costs. The efficiency ratio at the end of the third quarter of 2005 continuing operations was 54.2%. First Community’s efficiency ratio continues to compare very favorably to peers.
Credit quality remains sound with total delinquencies as a percent of total loans at 0.81% at September 30, 2005, compared with 0.80% and 0.83% at September 30 and December 31, 2004, respectively. The ratio of allowance for credit losses as a percent of loans held for investment of 1.13% compared to 1.32% at December 31, 2004. The provision for loan losses for the third quarter of 2005 was $1.1 million compared to the $1.2 million for the third quarter of 2004. The provision for the first nine months of 2005 was $2.8 million compared to $2.4 million for the same period in 2004. Changes in the provision are the result of the Company’s quarterly analysis of the adequacy of the allowance for credit losses. Net charge-offs for the third quarter 2005 were $2.6 million compared to $1.1 million for the third quarter 2004. Net charge-offs year-to-date were $4.3 million compared to $2.6 million for the same period of 2004. The notable increase in net charge-offs for the third quarter of 2005 is the result of a charge-down to net realizable value of a single, previously disclosed potential problem loan which had been specifically reserved based on collateral evaluation, poor cash flow, and recent delinquency. This credit dates back to 1996 and performed according to terms until early third quarter 2005.
During the third quarter, the Bank announced that it had entered into a definitive agreement to sell its Clifton Forge, Virginia, branch location. According to CEO John M. Mendez, the decision to sell the Clifton Forge office is part of the Company’s continuing effort to increase shareholder value through the ongoing evaluation of the branch network, and will provide additional capital for continued expansion in the Company’s targeted growth markets in the Southeast. The transaction is expected to result in an estimated pre-tax gain of approximately
5
$3.9 million, and is expected to be completed by year-end 2005, after obtaining required regulatory approvals.
During the third quarter, the board of directors declared a dividend to stockholders of twenty-five and a half cents ($0.255). The dividend represents an increase of 2.0% over the $0.25 per share paid in the third quarter of 2004. The year 2005 is expected to be the 15th consecutive year of regular dividend increases to stockholders. Dividends have increased at an average annual rate of over 11% since 1990.
Consolidated assets at September 30, 2005 increased $156.7 million, an 11% annualized growth rate, to $1.99 billion compared to $1.83 billion at the end of 2004. Deposits and customer repurchase agreements increased $102.9 million through September 30, 2005, an annualized growth rate of 9.3%. Total stockholders’ equity for the Company was $193.4 million at September 30, 2005, resulting in a book value per common share outstanding of $17.15 compared to $183.2 million and $16.29 per common share at December 31, 2004.
The Company will host a conference call at 11:00 a.m. today, October 26, 2005, to discuss third quarter results. To listen to the conference call via webcast, please visit our website at www.fcbinc.com.
First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a $1.99 billion bank holding company and is the parent company of First Community Bank, N. A. First Community Bank, N. A. operates through fifty-three full-service banking locations, six loan production offices, and two trust and investment management offices in the four states of Virginia, West Virginia, North Carolina and Tennessee. First Community Bank, N. A. is also the parent of Stone Capital Management, Inc., a SEC registered investment advisory firm, which offers wealth management and investment advice. First Community Bancshares, Inc.’s common stock is traded on the NASDAQ National Market under the symbol “FCBC.”
DISCLAIMER
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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First Community Bancshares, Inc.
Consolidated Statements of Income
(Dollars in Thousands, Except Per Share and Per Share Data)(Unaudited)
| | | | | | | | | | | | | | | | | | | |
| | | | | Three Months Ended | | Nine Months Ended |
| | | | | September 30, | | September 30, |
| | | | | 2005 | | 2004 | | 2005 | | 2004 |
| Interest Income | | Interest and fees on loans held for investment | | $ | 23,263 | | | $ | 19,953 | | | $ | 66,183 | | | $ | 56,195 | |
| | | Interest on securities-taxable | | | 2,904 | | | | 2,960 | | | | 7,755 | | | | 9,659 | |
| | | Interest on securities-nontaxable | | | 1,783 | | | | 1,642 | | | | 5,597 | | | | 4,985 | |
| | | Interest on federal funds sold and deposits | | | 343 | | | | 94 | | | | 737 | | | | 395 | |
| | | |
| | | Total interest income | | | 28,293 | | | | 24,649 | | | | 80,272 | | | | 71,234 | |
| | | |
| Interest Expense | | Interest on deposits | | | 6,296 | | | | 4,702 | | | | 16,805 | | | | 13,830 | |
| | | Interest on borrowings | | | 3,276 | | | | 2,246 | | | | 8,471 | | | | 6,092 | |
| | | |
| | | Total interest expense | | | 9,572 | | | | 6,948 | | | | 25,276 | | | | 19,922 | |
| | | |
| | | Net interest income | | | 18,721 | | | | 17,701 | | | | 54,996 | | | | 51,312 | |
| | | Provision for loan losses | | | 1,060 | | | | 1,152 | | | | 2,824 | | | | 2,407 | |
| | | |
| | | Net interest income after provision for loan losses | | | 17,661 | | | | 16,549 | | | | 52,172 | | | | 48,905 | |
| | | |
| Non-Interest Income | | Fiduciary income | | | 541 | | | | 499 | | | | 1,668 | | | | 1,429 | |
| | | Service charges on deposit accounts | | | 2,660 | | | | 2,461 | | | | 7,431 | | | | 6,722 | |
| | | Other service charges, commissions and fees | | | 949 | | | | 728 | | | | 2,634 | | | | 2,000 | |
| | | Gain on sale of securities | | | 536 | | | | 60 | | | | 679 | | | | 1,509 | |
| | | Other operating income | | | 346 | | | | 530 | | | | 912 | | | | 1,435 | |
| | | |
| | | Total non-interest income | | | 5,032 | | | | 4,278 | | | | 13,324 | | | | 13,095 | |
| | | |
| Non-Interest Expense | | Salaries and employee benefits | | | 7,260 | | | | 6,807 | | | | 22,030 | | | | 19,582 | |
| | | Occupancy expense of bank premises | | | 1,000 | | | | 913 | | | | 2,911 | | | | 2,659 | |
| | | Furniture and equipment expense | | | 855 | | | | 735 | | | | 2,452 | | | | 2,108 | |
| | | Amortization of intangible assets | | | 112 | | | | 112 | | | | 333 | | | | 287 | |
| | | Other operating expense | | | 3,891 | | | | 3,670 | | | | 11,189 | | | | 10,737 | |
| | | |
| | | Total non-interest expense | | | 13,118 | | | | 12,237 | | | | 38,915 | | | | 35,373 | |
| | | |
| | | Income from continuing operations before income taxes | | | 9,575 | | | | 8,590 | | | | 26,581 | | | | 26,627 | |
| | | Income tax expense continuing operations | | | 2,641 | | | | 1,968 | | | | 7,372 | | | | 6,817 | |
| | | |
| | | Income from continuing operations | | $ | 6,934 | | | $ | 6,622 | | | $ | 19,209 | | | $ | 19,810 | |
| | | Loss from discontinued operations before tax | | $ | (36 | ) | | $ | (1,266 | ) | | $ | (206 | ) | | $ | (5,531 | ) |
| | | Income tax benefit from discontinued operations | | $ | (14 | ) | | $ | (1,054 | ) | | $ | (80 | ) | | $ | (2,006 | ) |
| | | |
| | | Loss from discontinued operations | | $ | (22 | ) | | $ | (212 | ) | | $ | (126 | ) | | $ | (3,525 | ) |
| | | |
| | | Net income | | $ | 6,912 | | | $ | 6,410 | | | $ | 19,083 | | | $ | 16,285 | |
| | | |
| | | Basic earnings per common share (EPS) | | $ | 0.61 | | | $ | 0.57 | | | $ | 1.69 | | | $ | 1.45 | |
| | | Diluted earnings per common share (DEPS) | | $ | 0.61 | | | $ | 0.57 | | | $ | 1.68 | | | $ | 1.44 | |
| | | Basic earnings per common share-continuing operations | | $ | 0.61 | | | $ | 0.59 | | | $ | 1.70 | | | $ | 1.76 | |
| | | Diluted earnings per common share-continuing operation | | $ | 0.61 | | | $ | 0.58 | | | $ | 1.69 | | | $ | 1.75 | |
| | | Weighted Average Shares Outstanding: | | | | | | | | | | | | | | | | |
| | | Basic | | | 11,275,156 | | | | 11,231,973 | | | | 11,269,515 | | | | 11,235,462 | |
| | | Diluted | | | 11,342,912 | | | | 11,326,999 | | | | 11,342,233 | | | | 11,331,718 | |
| | | For the period: | | | | | | | | | | | | | | | | |
| | | Return on average equity | | | 14.23 | % | | | 13.06 | % | | | 13.49 | % | | | 12.30 | % |
| | | Return on average equity-continuing operations | | | 14.28 | % | | | 17.33 | % | | | 13.57 | % | | | 14.97 | % |
| | | Return on average assets | | | 1.40 | % | | | 1.22 | % | | | 1.34 | % | | | 1.21 | % |
| | | Return on average assets-continuing operations | | | 1.40 | % | | | 1.65 | % | | | 1.35 | % | | | 1.49 | % |
| | | Cash dividends per share | | $ | 0.255 | | | $ | 0.25 | | | $ | 0.765 | | | $ | 0.75 | |
| | | At period end: | | | | | | | | | | | | | | | | |
| | | Book value per share | | $ | 17.15 | | | $ | 16.08 | | | $ | 17.15 | | | $ | 16.08 | |
| | | Market value | | $ | 29.34 | | | $ | 32.85 | | | $ | 29.34 | | | $ | 32.85 | |
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First Community Bancshares, Inc.
Consolidated Balance Sheets(Dollars in Thousands, Except Share Data)(Unaudited)
| | | | | | | | | | | |
| | | | | September 30, | | December 31, |
| | | | | 2005 | | 2004 |
| Assets | | Cash and due from banks | | $ | 48,122 | | | $ | 37,294 | |
| | | Interest-bearing deposits with banks | | | 47,822 | | | | 17,452 | |
| | | Securities available for sale (amortized cost of $421,801 September 30, 2005; $384,746, December 31, 2004) | | | 424,631 | | | | 388,678 | |
| | | Securities held to maturity (fair value of $25,645 September 30, 2005; $35,610, December 31, 2004) | | | 24,723 | | | | 34,221 | |
| | | Loans held for sale | | | 1,377 | | | | 1,194 | |
| | | Loans held for investment, net of unearned income | | | 1,321,221 | | | | 1,238,756 | |
| | | Less allowance for loan losses | | | 14,486 | | | | 16,339 | |
| |
| | | Net loans | | | 1,306,735 | | | | 1,222,417 | |
| | | Premises and equipment | | | 35,640 | | | | 37,360 | |
| | | Other real estate owned | | | 1,690 | | | | 1,419 | |
| | | Interest receivable | | | 10,175 | | | | 8,554 | |
| | | Other assets | | | 25,312 | | | | 20,923 | |
| | | Intangible assets | | | 61,287 | | | | 61,310 | |
| |
| | | Total Assets | | $ | 1,987,514 | | | $ | 1,830,822 | |
| |
| Liabilities | | Deposits: | | | | | | | | |
| | | Demand | | $ | 237,455 | | | $ | 221,499 | |
| | | Interest-bearing demand | | | 152,331 | | | | 150,127 | |
| | | Savings | | | 375,027 | | | | 385,134 | |
| | | Time | | | 681,225 | | | | 602,304 | |
| |
| | | Total Deposits | | | 1,446,038 | | | | 1,359,064 | |
| | | Interest, taxes and other liabilities | | | 15,169 | | | | 14,313 | |
| | | Federal funds purchased | | | — | | | | 32,500 | |
| | | Securities sold under agreements to repurchase | | | 125,739 | | | | 109,857 | |
| | | FHLB and other indebtedness | | | 207,180 | | | | 131,855 | |
| |
| | | Total Liabilities | | | 1,794,126 | | | | 1,647,589 | |
| |
| Stockholders’ Equity | | Preferred stock, par value undesignated; 1,000,000 shares authorized; no shares issued and outstanding in 2005 and 2004 | | | — | | | | — | |
| | | Common stock, $1 par value; 25,000,000 and 15,000,000 shares authorized in 2005 and 2004, respectively;11,495,570 and 11,472,311 issued in 2005 and 2004, respectively; 11,273,248 and 11,250,927 outstanding in 2005 and 2004, respectively | | | 11,496 | | | | 11,472 | |
| | | Additional paid-in capital | | | 108,606 | | | | 108,263 | |
| | | Retained earnings | | | 78,484 | | | | 68,019 | |
| | | Treasury stock, at cost | | | (6,897 | ) | | | (6,881 | ) |
| | | Accumulated other comprehensive income | | | 1,699 | | | | 2,360 | |
| |
| | | Total Stockholders’ Equity | | | 193,388 | | | | 183,233 | |
| |
| | | Total Liabilities and Stockholders’ Equity | | $ | 1,987,514 | | | $ | 1,830,822 | |
| |
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First Community Bancshares, Inc.
Quarterly Performance Summary
Income Statements
(Dollars in Thousands Except Share and Per Share Data)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | As of and for the Quarter Ended |
| | | | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| | | | | 2005 | | 2005 | | 2005 | | 2004 | | 2004 |
| Interest Income | | Interest and fees on loans held for investment | | $ | 23,263 | | | $ | 22,192 | | | $ | 20,728 | | | $ | 20,518 | | | $ | 19,953 | |
| | | Interest on securities-taxable | | | 2,904 | | | | 2,555 | | | | 2,296 | | | | 2,460 | | | | 2,960 | |
| | | Interest on securities-nontaxable | | | 1,783 | | | | 1,865 | | | | 1,949 | | | | 1,727 | | | | 1,642 | |
| | | Interest on federal funds sold and deposits | | | 343 | | | | 178 | | | | 215 | | | | 197 | | | | 94 | |
| | | | | |
| | | Total interest income | | | 28,293 | | | | 26,790 | | | | 25,188 | | | | 24,902 | | | | 24,649 | |
| | | | | |
| Interest Expense | | Interest on deposits | | | 6,296 | | | | 5,547 | | | | 4,962 | | | | 4,648 | | | | 4,702 | |
| | | Interest on borrowings | | | 3,276 | | | | 2,721 | | | | 2,473 | | | | 2,383 | | | | 2,246 | |
| | | | | |
| | | Total interest expense | | | 9,572 | | | | 8,268 | | | | 7,435 | | | | 7,031 | | | | 6,948 | |
| | | | | |
| | | Net interest income | | | 18,721 | | | | 18,522 | | | | 17,753 | | | | 17,871 | | | | 17,701 | |
| | | Provision for loan losses | | | 1,060 | | | | 1,073 | | | | 691 | | | | 264 | | | | 1,152 | |
| | | | | |
| | | Net interest income after provision for loan losses | | | 17,661 | | | | 17,449 | | | | 17,062 | | | | 17,607 | | | | 16,549 | |
| | | | | |
| Non-Int Income | | Fiduciary income | | | 541 | | | | 589 | | | | 538 | | | | 529 | | | | 499 | |
| | | Service charges on deposit accounts | | | 2,660 | | | | 2,623 | | | | 2,148 | | | | 2,400 | | | | 2,461 | |
| | | Other service charges, commissions and fees | | | 949 | | | | 875 | | | | 810 | | | | 770 | | | | 728 | |
| | | Gain (loss) on Securities | | | 536 | | | | 121 | | | | 22 | | | | 95 | | | | 60 | |
| | | Other operating income | | | 346 | | | | 362 | | | | 204 | | | | 440 | | | | 530 | |
| | | | | |
| | | Total non-interest income | | | 5,032 | | | | 4,570 | | | | 3,722 | | | | 4,234 | | | | 4,278 | |
| | | | | |
| Non-Int Expense | | Salaries and employee benefits | | | 7,260 | | | | 7,452 | | | | 7,318 | | | | 7,064 | | | | 6,807 | |
| | | Occupancy expense of bank premises | | | 1,000 | | | | 968 | | | | 943 | | | | 900 | | | | 913 | |
| | | Furniture and equipment expense | | | 855 | | | | 813 | | | | 784 | | | | 764 | | | | 735 | |
| | | Amortization of intangible assets | | | 112 | | | | 111 | | | | 110 | | | | 112 | | | | 112 | |
| | | Other operating expense | | | 3,891 | | | | 3,957 | | | | 3,341 | | | | 3,822 | | | | 3,670 | |
| | | | | |
| | | Total non-interest expense | | | 13,118 | | | | 13,301 | | | | 12,496 | | | | 12,662 | | | | 12,237 | |
| | | | | |
| | | Income before income taxes-continuing operations | | | 9,575 | | | | 8,718 | | | | 8,288 | | | | 9,179 | | | | 8,590 | |
| | | Income tax expense-continuing operations | | | 2,641 | | | | 2,494 | | | | 2,237 | | | | 2,969 | | | | 1,968 | |
| | | | | |
| | | Income from continuing operations | | | 6,934 | | | | 6,224 | | | | 6,051 | | | | 6,210 | | | | 6,622 | |
| | | | | |
| | | Loss before tax-discontinued operations | | | (36 | ) | | | (39 | ) | | | (131 | ) | | | (215 | ) | | | (1,266 | ) |
| | | Income tax benefit-discontinued operations | | | (14 | ) | | | (15 | ) | | | (51 | ) | | | (84 | ) | | | (1,054 | ) |
| | | | | |
| | | Loss from discontinued operations | | | (22 | ) | | | (24 | ) | | | (80 | ) | | | (131 | ) | | | (212 | ) |
| | | Net income | | | 6,912 | | | | 6,200 | | | | 5,971 | | | | 6,079 | | | | 6,410 | |
| | | | | |
| Per Share | | Basic EPS | | $ | 0.61 | | | $ | 0.55 | | | $ | 0.53 | | | $ | 0.54 | | | $ | 0.57 | |
| | | Diluted EPS | | $ | 0.61 | | | $ | 0.55 | | | $ | 0.53 | | | $ | 0.54 | | | $ | 0.57 | |
| | | Basic EPS from continuing operations | | $ | 0.61 | | | $ | 0.55 | | | $ | 0.54 | | | $ | 0.55 | | | $ | 0.59 | |
| | | Diluted EPS from continuing operations | | $ | 0.61 | | | $ | 0.55 | | | $ | 0.53 | | | $ | 0.55 | | | $ | 0.58 | |
| Data | | Cash dividends per share | | $ | 0.255 | | | $ | 0.255 | | | $ | 0.255 | | | $ | 0.25 | | | $ | 0.25 | |
| | | Weighted Average Shares Outstanding: | | | | | | | | | | | | | | | | | | | | |
| | | Basic | | | 11,275,156 | | | | 11,273,724 | | | | 11,259,494 | | | | 11,248,137 | | | | 11,231,973 | |
| | | Diluted | | | 11,342,912 | | | | 11,344,480 | | | | 11,339,136 | | | | 11,355,202 | | | | 11,326,999 | |
| | | Actual shares outstanding at period end | | | 11,273,248 | | | | 11,274,391 | | | | 11,271,835 | | | | 11,250,927 | | | | 11,243,991 | |
| | | Book Value per share at period end | | $ | 17.15 | | | $ | 16.83 | | | $ | 16.35 | | | $ | 16.29 | | | $ | 16.08 | |
| | | Market Value per share at period end | | $ | 29.34 | | | $ | 32.50 | | | $ | 28.07 | | | $ | 36.08 | | | $ | 32.85 | |
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First Community Bancshares, Inc.
Quarterly Performance Summary
Income Statements
(Dollars in Thousands Except Per Share Data)
| | | | | | | | | | | | | | | | | | | | | |
| | As of and for the Quarter Ended |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| | | 2005 | | 2005 | | 2005 | | 2004 | | 2004 |
| | | |
Ratios: | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 1.40 | % | | | 1.31 | % | | | 1.30 | % | | | 1.32 | % | | | 1.39 | % |
| Return on average assets-continuing operations | | | 1.40 | % | | | 1.32 | % | | | 1.32 | % | | | 1.35 | % | | | 1.44 | % |
| Return on average equity | | | 14.23 | % | | | 13.19 | % | | | 13.00 | % | | | 13.20 | % | | | 14.46 | % |
| Return on average equity-continuing operations | | | 14.28 | % | | | 13.24 | % | | | 13.17 | % | | | 13.48 | % | | | 14.94 | % |
| Net yield on earning assets | | | 4.33 | % | | | 4.51 | % | | | 4.47 | % | | | 4.45 | % | | | 4.33 | % |
| Net yield on earning assets-continuing operations | | | 4.33 | % | | | 4.51 | % | | | 4.47 | % | | | 4.45 | % | | | 4.33 | % |
| Efficiency Ratio at end of period | | | 54.52 | % | | | 55.11 | % | | | 55.52 | % | | | 58.65 | % | | | 59.73 | % |
| Efficiency Ratio at end of period-continuing operations | | | 54.23 | % | | | 54.75 | % | | | 54.94 | % | | | 53.19 | % | | | 52.67 | % |
| Equity as a percent of total assets at end of period | | | 9.73 | % | | | 9.80 | % | | | 9.77 | % | | | 10.01 | % | | | 9.90 | % |
| Equity as a percent of continuing assets at end of period | | | 9.73 | % | | | 9.80 | % | | | 9.77 | % | | | 10.01 | % | | | 9.90 | % |
| Average earning assets as a percentage of average total assets | | | 92.09 | % | | | 91.95 | % | | | 91.93 | % | | | 91.92 | % | | | 91.78 | % |
| Average earning assets-continuing as a percentage of average total assets continuing operations | | | 92.09 | % | | | 91.95 | % | | | 91.93 | % | | | 91.92 | % | | | 91.78 | % |
| Average loans (not including loans held for sale) as a percentage of average deposits | | | 92.94 | % | | | 92.48 | % | | | 91.21 | % | | | 90.31 | % | | | 88.63 | % |
| | | | | | | | | | | | | | | | | | | | | |
QTD : | | | | | | | | | | | | | | | | | | | | |
| Average Loans | | $ | 1,320,434 | | | $ | 1,299,358 | | | $ | 1,260,521 | | | $ | 1,234,932 | | | $ | 1,222,204 | |
| Average Earning Assets | | $ | 1,804,504 | | | $ | 1,739,147 | | | $ | 1,707,710 | | | $ | 1,684,058 | | | $ | 1,689,565 | |
| Average Earning Assets-continuing operations | | $ | 1,804,504 | | | $ | 1,739,147 | | | $ | 1,707,710 | | | $ | 1,684,058 | | | $ | 1,680,982 | |
| Average Total Assets | | $ | 1,959,583 | | | $ | 1,891,333 | | | $ | 1,857,645 | | | $ | 1,832,023 | | | $ | 1,840,911 | |
| Average Total Assets-continuing operations | | $ | 1,959,583 | | | $ | 1,891,333 | | | $ | 1,857,645 | | | $ | 1,832,023 | | | $ | 1,831,596 | |
| Average Deposits | | $ | 1,420,799 | | | $ | 1,405,086 | | | $ | 1,381,929 | | | $ | 1,367,365 | | | $ | 1,379,000 | |
| Average Deposits-continuing operations | | $ | 1,420,799 | | | $ | 1,405,086 | | | $ | 1,381,929 | | | $ | 1,367,365 | | | $ | 1,378,953 | |
| Average Equity | | $ | 192,648 | | | $ | 188,532 | | | $ | 186,332 | | | $ | 183,258 | | | $ | 176,369 | |
| Taxable Equivalent Net Interest Income | | $ | 19,691 | | | $ | 19,535 | | | $ | 18,833 | | | $ | 18,824 | | | $ | 18,374 | |
| Taxable Equivalent Net Interest Income-continuing operations | | $ | 19,691 | | | $ | 19,535 | | | $ | 18,833 | | | $ | 18,824 | | | $ | 18,314 | |
| Average Interest-bearing deposits | | $ | 1,187,958 | | | $ | 1,176,779 | | | $ | 1,162,230 | | | $ | 1,143,060 | | | $ | 1,160,880 | |
| Average Interest-bearing deposits-continuing operations | | $ | 1,187,958 | | | $ | 1,176,779 | | | $ | 1,162,230 | | | $ | 1,143,060 | | | $ | 1,160,880 | |
10
First Community Bancshares, Inc.
Quarterly Performance Summary
Balance Sheets
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | (Dollars in Thousands) | | | | |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| | | 2005 | | 2005 | | 2005 | | 2004 | | 2004 |
| | | |
| Cash and due from banks | | $ | 48,122 | | | $ | 43,415 | | | $ | 34,328 | | | $ | 37,294 | | | $ | 37,400 | |
| Interest-bearing deposits with banks | | | 47,822 | | | | 64,488 | | | | 48,942 | | | | 17,452 | | | | 17,678 | |
| Securities available for sale | | | 424,631 | | | | 381,540 | | | | 372,585 | | | | 388,678 | | | | 391,623 | |
| Securities held to maturity | | | 24,723 | | | | 29,854 | | | | 32,009 | | | | 34,221 | | | | 34,719 | |
| Loans held for sale | | | 1,377 | | | | 1,075 | | | | 1,182 | | | | 1,194 | | | | 1,163 | |
| Loans held for investment, net of unearned income | | | 1,321,221 | | | | 1,296,728 | | | | 1,282,546 | | | | 1,238,756 | | | | 1,229,270 | |
| Less allowance for loan losses | | | 14,486 | | | | 15,984 | | | | 16,543 | | | | 16,339 | | | | 16,233 | |
| | | |
| Net loans | | | 1,306,735 | | | | 1,280,744 | | | | 1,266,003 | | | | 1,222,417 | | | | 1,213,037 | |
| Premises and equipment | | | 35,640 | | | | 35,796 | | | | 35,869 | | | | 37,360 | | | | 36,499 | |
| Other real estate owned | | | 1,690 | | | | 975 | | | | 1,389 | | | | 1,419 | | | | 1,636 | |
| Interest receivable | | | 10,175 | | | | 9,476 | | | | 9,124 | | | | 8,554 | | | | 8,770 | |
| Other assets | | | 25,312 | | | | 26,496 | | | | 23,895 | | | | 20,923 | | | | 22,302 | |
| Intangible assets | | | 61,287 | | | | 61,399 | | | | 61,510 | | | | 61,310 | | | | 61,715 | |
| | | |
Total Assets | | $ | 1,987,514 | | | $ | 1,935,258 | | | $ | 1,886,836 | | | $ | 1,830,822 | | | $ | 1,826,542 | |
| | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Demand | | $ | 237,455 | | | $ | 235,217 | | | $ | 220,741 | | | $ | 221,499 | | | $ | 218,818 | |
| Interest-bearing demand | | | 152,331 | | | | 150,112 | | | | 154,316 | | | | 150,127 | | | | 152,191 | |
| Savings | | | 375,027 | | | | 350,189 | | | | 364,933 | | | | 385,134 | | | | 382,468 | |
| Time | | | 681,225 | | | | 662,381 | | | | 661,882 | | | | 602,304 | | | | 609,076 | |
| | | |
| Total Deposits | | | 1,446,038 | | | | 1,397,899 | | | | 1,401,872 | | | | 1,359,064 | | | | 1,362,553 | |
| Interest, taxes and other liabilities | | | 15,169 | | | | 15,122 | | | | 15,625 | | | | 14,313 | | | | 14,616 | |
| Federal funds purchased | | | — | | | | — | | | | — | | | | 32,500 | | | | — | |
| Securities sold under agreements to repurchase | | | 125,739 | | | | 125,285 | | | | 128,244 | | | | 109,857 | | | | 111,481 | |
| FHLB and other indebtedness | | | 207,180 | | | | 207,231 | | | | 156,822 | | | | 131,855 | | | | 157,060 | |
| | | |
Total Liabilities | | | 1,794,126 | | | | 1,745,537 | | | | 1,702,563 | | | | 1,647,589 | | | | 1,645,710 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| Preferred Stock | | | — | | | | — | | | | — | | | | — | | | | — | |
| Common stock, $1 par value | | | 11,496 | | | | 11,496 | | | | 11,491 | | | | 11,472 | | | | 11,470 | |
| Additional paid-in capital | | | 108,606 | | | | 108,639 | | | | 108,576 | | | | 108,263 | | | | 108,280 | |
| Retained earnings | | | 78,484 | | | | 74,444 | | | | 71,116 | | | | 68,019 | | | | 64,752 | |
| Treasury stock, at cost | | | (6,897 | ) | | | (6,864 | ) | | | (6,804 | ) | | | (6,881 | ) | | | (7,029 | ) |
| Accumulated other comprehensive income (loss) | | | 1,699 | | | | 2,006 | | | | (106 | ) | | | 2,360 | | | | 3,359 | |
| | | |
Total Stockholders’ Equity | | | 193,388 | | | | 189,721 | | | | 184,273 | | | | 183,233 | | | | 180,832 | |
| | | |
Total Liabilities and Stockholders’ Equity | | $ | 1,987,514 | | | $ | 1,935,258 | | | $ | 1,886,836 | | | $ | 1,830,822 | | | $ | 1,826,542 | |
| | | |
11
First Community Bancshares, Inc.
Selected Financial Information
(Dollars in Thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | As of and for the Quarter Ended | | |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| | | 2005 | | 2005 | | 2005 | | 2004 | | 2004 |
| | | |
Asset Quality Analysis: | | | | | | | | | | | | | | | | | | | | |
| Allowance for Credit Losses: | | | | | | | | | | | | | | | | | | | | |
| Beginning balance | | $ | 16,597 | | | $ | 16,543 | | | $ | 16,339 | | | $ | 16,233 | | | $ | 16,160 | |
| Provision for Credit Losses | | | 907 | | | | 1,294 | | | | 691 | | | | 264 | | | | 1,152 | |
| Charge-offs | | | (3,037 | ) | | | (1,638 | ) | | | (844 | ) | | | (718 | ) | | | (1,312 | ) |
| Recoveries | | | 479 | | | | 398 | | | | 357 | | | | 560 | | | | 233 | |
| | | |
| Net charge-offs | | | (2,558 | ) | | | (1,240 | ) | | | (487 | ) | | | (158 | ) | | | (1,079 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Ending balance | | $ | 14,946 | | | $ | 16,597 | | | $ | 16,543 | | | $ | 16,339 | | | $ | 16,233 | |
| | | |
| |
Nonperforming Assets: | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual loans | | $ | 5,417 | | | $ | 4,132 | | | $ | 6,419 | | | $ | 5,168 | | | $ | 3,679 | |
| Foreclosed real estate | | | 1,690 | | | | 975 | | | | 1,389 | | | | 1,419 | | | | 1,636 | |
| Repossessions | | | 14 | | | | 29 | | | | 26 | | | | 1 | | | | 40 | |
| Loans 90 days or more past due & still accruing | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | |
| Nonperforming assets | | $ | 7,121 | | | $ | 5,136 | | | $ | 7,834 | | | $ | 6,588 | | | $ | 5,355 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans 90 days or more past due & still accruing as a percentage of loans held for investment | | | 0.00 | % | | | 0.00 | % | | | 0.00 | % | | | 0.00 | % | | | 0.00 | % |
| | | | | | | | | | | | | | | | | | | | | |
Asset Quality Ratios: | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual loans and leases as a percentage of loans held for investment | | | 0.41 | % | | | 0.32 | % | | | 0.50 | % | | | 0.42 | % | | | 0.30 | % |
| Nonperforming assets as a percentage of: | | | | | | | | | | | | | | | | | | | | |
| Total assets | | | 0.36 | % | | | 0.27 | % | | | 0.42 | % | | | 0.36 | % | | | 0.29 | % |
| Total assets-continuing | | | 0.36 | % | | | 0.27 | % | | | 0.42 | % | | | 0.36 | % | | | 0.29 | % |
| Loans held for investment plus foreclosed property | | | 0.54 | % | | | 0.40 | % | | | 0.61 | % | | | 0.53 | % | | | 0.44 | % |
| Net charge-offs as a % of average loans held for investment | | | 0.19 | % | | | 0.10 | % | | | 0.04 | % | | | 0.01 | % | | | 0.09 | % |
| Allowance for credit losses as a percentage of loans held for investment | | | 1.13 | % | | | 1.28 | % | | | 1.29 | % | | | 1.32 | % | | | 1.32 | % |
| Ratio of allowance for credit losses to nonaccrual loans | | | 2.76 | | | | 4.02 | | | | 2.58 | | | | 3.16 | | | | 4.41 | |
| | | | | | | | | | | | | | | | | | | | | |
| Restructured loans performing according to modified terms | | $ | 313 | | | $ | 327 | | | $ | 344 | | | $ | 354 | | | $ | 368 | |
12
