Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE: FOR MORE INFORMATION,
APRIL 16, 2002 CONTACT: ROBERT L. SCHUMACHER
AT (276) 326-9000
FIRST COMMUNITY BANCSHARES, INC. (FCBC) ANNOUNCES
FIRST QUARTER OPERATING RESULTS
First Community Bancshares, Inc. (Nasdaq: FCBC; www.fcbinc.com) today
reported record earnings of $6.2 million for the First Quarter of 2002, or $0.62
earnings per basic and diluted share. This represents a substantial improvement
compared to results for the First Quarter of 2001 of $0.45 per share and $4.5
million net income. First Quarter 2002 earnings improved 38% compared to the
First Quarter of 2001 and earnings per share showed a 38% improvement when
comparing the First Quarter of 2002 to the First Quarter of 2001. Return on
average equity increased to 18.26% in the First Quarter of 2002 compared to
14.56% for the First Quarter last year. In addition, return on average assets
increased to 1.72% in 2002 compared to 1.48% for the First Quarter of 2001.
Earnings for the First Quarter 2002, compared to First Quarter 2001,
were up $1.72 million. The largest factors contributing to this increase are a
$2.56 million increase in net interest income, (the result of a $1.0 million
increase in income earned on investment securities and a $1.4 million decrease
in interest expense), and a $1.5 million increase in mortgage banking income.
Partially offsetting these increases was an increase of approximately $1.1
million in salaries and benefits and a $0.9 million increase in other operating
expenses. Also, in the first quarter of 2002, First Community adopted FASB
Statement No. 142, and as a result, amortization of goodwill was reduced by
approximately $360,000 relative to First Quarter last year.
The $6.2 million First Quarter 2002 net income also compares favorably
with the Fourth Quarter of 2001 net income of $5.1 million resulting in a
quarter-to-quarter increase of $1.1 million. Basic and diluted earnings per
share of $0.62 in the First Quarter of 2002 show a 21.6% improvement versus
Fourth Quarter 2001 basic and diluted earnings per share of $0.51 and a 12.7%
improvement over the $0.55 basic and fully diluted earnings per share after
adjustment for FAS 142.
First Quarter 2002 also produced an increase of $1.0 million in net
interest income compared to Fourth Quarter of the previous year. Approximately
$750,000 of this improvement is directly attributable to the First Quarter
operations of the BB&T and F&M branches acquired by First Community in December
of 2001. Non-interest income increased overall by $286,000 versus Fourth Quarter
of 2001. Non-interest expense was up by $1.1 million as compared to Fourth
Quarter last year, with Salaries and Employee Benefits contributing the most to
this change with an increase of just under $900,000.
Despite the slowing economy, First Community's asset quality ratios
remain sound. The ratio of non-performing assets to total assets stood at .50%
in the First Quarter of 2002, which is substantially better than First
Community's Peer Group's ratio of 1.01% and is an improvement over the year end
level of .54%. Loans past due 90 days were .02%, while non-accruing loans were
.51% of total loans. Total delinquencies were 1.55%, up slightly from the year
end level of 1.53%. The coverage ratio at the end of the first quarter of 2002
was 295% compared to 188% at the end of the first quarter 2001 and 280% at
December 31, 2001.
Average assets for the first quarter of 2002 increased by $91.7 million
over the December 31, 2001 quarterly average. Average deposits also increased
$85.8 million when compared to the fourth quarter 2001 average. Included in the
average deposit growth were approximately $114 million in deposits obtained
through the Fourth Quarter acquisition of four branches of BB&T and F&M located
in Clifton Forge, Drakes Branch and Emporia Virginia. Total equity for the
Company increased to $136 million, bringing book value per common share
outstanding to $13.67, up from $12.64 at March 31, 2001 and $13.39 at December
31, 2001.
First Community is a $1.47 billion bank holding company with
headquarters in Bluefield, Virginia. The Company, through its wholly owned
subsidiary First Community Bank, N. A., operates 38 branches throughout
Virginia, West Virginia and North Carolina. First Community Bank, N. A. also
owns United First Mortgage, Inc. based in Richmond, Viginia, which operates 11
offices from Virginia Beach to Harrisonburg, Virginia.
First Community Bancshares' common stock is traded on the Nasdaq
SmallCap 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: the timely
development, production and acceptance of new products and services and their
feature sets; 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.
****
FIRST COMMUNITY BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
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(Dollars in Thousands, Except Per Share Data)(Unaudited) Three Months
Ended
March 31
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2002 2001
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INTEREST Interest and fees on loans held for investment $ 18,036 $ 18,129
INCOME Interest and fees on loans held for sale 844 611
Interest on securities-taxable 3,378 2,679
Interest on securities-nontaxable 1,742 1,384
Interest on federal funds sold and deposits 43 98
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TOTAL INTEREST INCOME 24,043 22,901
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INTEREST Interest on deposits 6,993 8,411
EXPENSE Interest on borrowings 2,577 2,575
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TOTAL INTEREST EXPENSE 9,570 10,986
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NET INTEREST INCOME 14,473 11,915
Provision for loan losses 937 747
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NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES 13,536 11,168
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NON-INTEREST Fiduciary income 343 409
INCOME Service charges on deposit accounts 1,463 1,305
Other service charges, commissions and fees 326 477
Mortgage banking income 3,249 1,745
Other operating income 296 231
Gain on sale of securities 177 51
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TOTAL NON-INTEREST INCOME 5,854 4,218
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NON-INTEREST Salaries and employee benefits 5,803 4,671
EXPENSE Occupancy expense of bank premises 743 662
Furniture and equipment expense 503 463
Amortization of intangible assets 287 556
Other operating expense 3,501 2,601
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TOTAL NON-INTEREST EXPENSE 10,837 8,953
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Income before income taxes 8,553 6,433
Income tax expense 2,375 1,977
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NET INCOME (1) 6,178 4,456
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===================================================================================================================================
BASIC AND DILUTED EARNINGS PER COMMON SHARE (EPS) (1) $ 0.62 $ 0.45
===================================================================================================================================
Weighted Average Shares Outstanding:
Basic 9,933,222 9,945,443
Diluted 9,977,531 9,951,840
For the year:
Return on average equity 18.26% 14.56%
Return on average assets 1.72% 1.48%
Cash dividends per share $ 0.25 $ 0.21
At year end:
Book value per share $ 13.67 $ 12.64
Market value (closing price) $ 30.26 $ 16.76
===================================================================================================================================
*Effective January 1, 2002, FCBC ceased amortization of certain goodwill in
accordance with FASB Statement 142. An adjustment of $355 would be necessary to
conform the prior period amount to current year presentation resulting in an
adjusted net income and earnings per share for the corresponding period in 2001
of $4,811 and $0.49, respectivley.
FIRST COMMUNITY BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS
===================================================================================================================================
(Dollars in Thousands, Except Per Share Data)(Unaudited)
MARCH 31, DECEMBER 31,
2002 2001
---------------- --------------
ASSETS Cash and due from banks $ 28,547 $ 47,566
Interest-bearing balances with banks 830 249
Securities available for sale (amortized cost of $369,142
March 31, 2002; $352,759, December 31, 2001) 368,526 354,007
Investment securities held to maturity (market value of $43,067
March 31, 2002; $43,393, December 31, 2001) 41,446 41,884
Loans held for sale 47,596 65,532
Loans held for investment, net of unearned income 911,746 904,496
Less reserve for loan losses 14,271 13,952
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Net loans 897,475 890,544
Premises and equipment 21,927 21,713
Other real estate owned 2,538 3,029
Interest receivable 9,139 8,765
Other assets 23,459 18,468
Intangible assets 26,125 26,478
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TOTAL ASSETS $ 1,467,608 $1,478,235
===================================================================================================================================
LIABILITIES Deposits:
Demand $ 152,980 $ 161,346
Interest-bearing demand 191,284 183,685
Savings 160,544 142,839
Time 577,398 590,390
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Total Deposits 1,082,206 1,078,260
Interest, taxes and other liabilities 16,135 15,852
Fed Funds Purchased 4,560 26,500
Securities sold under agreements to repurchase 79,238 79,262
FHLB and other indebtedness 149,467 145,320
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TOTAL LIABILITIES 1,331,606 1,345,194
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STOCKHOLDERS' Common stock, $1 par value; 15,000,000 shares authorized in 2002
EQUITY and 2001, respectively; 9,956,714 issued in 2002 and 9,955,425
issued in 2001; and 9,950,982 and 9,936,442 outstanding in
2002 and 2001, respectively 9,957 9,955
Additional paid-in capital 58,600 60,189
Retained earnings 67,981 62,566
Treasury stock, at cost (167) (424)
Accumulated other comprehensive income (loss) (369) 755
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TOTAL STOCKHOLDERS' EQUITY 136,002 133,041
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 1,467,608 $ 1,478,235
===================================================================================================================================
FIRST COMMUNITY BANCSHARES, INC.
QUARTERLY PERFORMANCE SUMMARY AS OF AND FOR THE QUARTER ENDED
INCOME STATEMENTS MARCH 31, DECEMBER 31, SEPTEMBER 30, JUNE 30, MARCH 31,
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) 2002 2001 2001 2001 2001
-------------------------------------------------------------------
INTEREST Interest and fees on loans held for investment $ 18,036 $ 17,963 $ 18,228 $ 18,262 $ 18,129
INCOME Interest and fees on loans held for sale 844 846 763 736 611
Interest on securities-taxable 3,378 2,792 2,596 2,193 2,679
Interest on securities-nontaxable 1,742 1,706 1,634 1,465 1,384
Interest on federal funds sold and deposits 43 96 169 479 98
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TOTAL INTEREST INCOME 24,043 23,403 23,390 23,135 22,901
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INTEREST Interest on deposits 6,993 7,298 7,879 8,296 8,411
EXPENSE Interest on borrowings 2,577 2,663 2,701 2,586 2,575
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TOTAL INTEREST EXPENSE 9,570 9,961 10,580 10,882 10,986
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NET INTEREST INCOME 14,473 13,442 12,810 12,253 11,915
Provision for loan losses 937 2,120 1,282 985 747
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NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES 13,536 11,322 11,528 11,268 11,168
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NON-INT Fiduciary income 343 435 470 501 409
INCOME Service charges on deposit accounts 1,463 1,641 1,517 1,503 1,305
Other service charges, commissions and fees 326 427 332 199 477
Mortgage banking income 3,249 2,515 2,778 2,544 1,745
Other operating income 296 566 236 263 231
Gain (loss) on Sale of Securities 177 (16) 153 (7) 51
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TOTAL NON-INTEREST INCOME 5,854 5,568 5,486 5,003 4,218
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NON-INT Salaries and employee benefits 5,803 4,926 5,239 4,994 4,671
EXPENSE Occupancy expense of bank premises 743 610 668 675 662
Furniture and equipment expense 503 452 403 496 463
Goodwill amortization 287 598 568 563 556
Other operating expense 3,501 3,155 2,825 2,900 2,601
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TOTAL NON-INTEREST EXPENSE 10,837 9,741 9,703 9,628 8,953
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Income before income taxes 8,553 7,149 7,311 6,643 6,433
Income tax expense 2,375 2,080 2,311 2,034 1,977
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NET INCOME 6,178 5,069 5,000 4,609 4,456
FAS 142 GOODWILL ADJUSTMENT 0 371 361 359 355
ADJUSTED NET INCOME $ 6,178 $ 5,440 $ 5,361 $ 4,968 $ 4,811
PER SHARE DATA:
Basic and diluted earnings per common share (EPS) $ 0.62 $ 0.51 $ 0.50 $ 0.46 $ 0.45
EPS adjusted for FAS 142 (1) $ 0.62 $ 0.55 $ 0.54 $ 0.50 $ 0.49
Cash dividends per share $ 0.25 $ 0.26 $ 0.21 $ 0.21 $ 0.21
Cash dividends per share adjusted for FAS 142 (1) $ 0.25 $ 0.30 $ 0.25 $ 0.25 $ 0.25
Weighted Average Shares Outstanding:
Basic 9,933,222 9,939,974 9,943,522 9,948,374 9,945,443
Diluted 9,977,531 9,991,895 10,003,547 9,967,091 9,951,840
Actual Shares Oustanding 9,950,982 9,936,442 9,942,602 9,946,624 9,954,762
Book Value per share at period end $ 13.67 $ 13.39 $ 13.33 $ 12.85 $ 12.64
Market Value per share at period end $ 30.26 $ 26.95 $ 28.82 $ 27.17 $ 16.76
RATIOS EXCLUDING NONRECURRING ITEMS:
Return on average assets 1.72% 1.47% 1.53% 1.47% 1.48%
Return on average equity 18.26% 14.89% 15.21% 14.55% 14.56%
Net yield on earning assets 4.64% 4.52% 4.60% 4.53% 4.61%
Efficiency Ratio at end of period 47.14% 47.81% 48.71% 49.40% 49.29%
Equity as a percent of total assets at end of period 9.27% 9.00% 10.07% 10.00% 9.99%
Average earning assets as a percentage of
average total assets 92.77% 92.69% 92.46% 92.09% 91.58%
Average loans (not including loans held for sale) as
a percentage of average deposits 84.78% 88.27% 90.39% 89.08% 91.72%
End of Period:
Total Assets $ 1,467,608 $1,478,235 $ 1,315,775 $1,278,130 $ 1,259,508
Total Equity $ 136,002 $ 133,041 $ 132,472 $ 127,791 $ 125,773
QTD:
Average Loans (Not including Loans Held for Sale) $ 914,749 $ 876,744 $ 850,759 $ 826,055 $ 822,184
Average Earning Assets $ 1,351,598 $1,265,381 $ 1,197,447 $1,160,550 $ 1,120,187
Average Total Assets $ 1,456,863 $1,365,173 $ 1,295,051 $1,260,167 $ 1,223,211
Average Deposits $ 1,079,022 $ 993,252 $ 941,190 $ 927,309 $ 896,362
<FN>
(1) Effective January 1, 2002, FCBC ceased amortization of
certain goodwill in accordance with FASB Statement No. 142.
This adjustment conforms prior period amounts with current year
presentation.
FIRST COMMUNITY BANCSHARES, INC.
QUARTERLY PERFORMANCE SUMMARY
BALANCE SHEETS
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
MARCH 31, DECEMBER 31, SEPTEMBER 30, JUNE 30, MARCH 31,
2002 2001 2001 2001 2001
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Cash and due from banks $ 28,547 $ 47,566 $ 35,275 $ 29,296 $ 34,139
Interest-bearing balances with banks 830 249 15,018 13,441 36,248
Securities available for sale 368,526 354,007 261,409 254,368 205,808
Investment securities held to maturity 41,446 41,884 42,001 42,114 42,218
Loans held for sale 47,596 65,532 40,759 34,303 58,889
Loans held for investment, net of unearned income 911,746 904,496 862,689 845,390 822,455
Less reserve for loan losses 14,271 13,952 12,889 12,688 12,408
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Net loans 897,475 890,544 849,800 832,702 810,047
Premises and equipment 21,927 21,713 19,452 19,412 19,363
Other real estate owned 2,538 3,029 2,595 2,614 2,591
Interest receivable 9,139 8,765 8,746 8,464 8,104
Other assets 23,459 18,468 18,199 18,327 18,450
Intangible assets 26,125 26,478 22,521 23,089 23,651
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TOTAL ASSETS $ 1,467,608 $ 1,478,235 $ 1,315,775 $ 1,278,130 $ 1,259,508
============================================================================
Deposits:
Demand $ 152,980 $ 161,346 $ 140,754 $ 130,245 $ 131,182
Interest-bearing demand 191,284 183,685 145,927 139,225 141,578
Savings 160,544 142,839 131,306 130,350 131,205
Time 577,398 590,390 535,700 528,642 522,447
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Total Deposits 1,082,206 1,078,260 953,687 928,462 926,412
Interest, taxes and other liabilities 16,135 15,852 15,760 13,909 14,597
Federal funds purchased 4,560 26,500 -- -- --
Securities sold under agreements to repurchase 79,238 79,262 66,126 60,447 52,617
FHLB and other indebtedness 149,467 145,320 147,730 147,521 140,109
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TOTAL LIABILITIES 1,331,606 1,345,194 1,183,303 1,150,339 1,133,735
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Common stock, $1 par value 9,957 9,052 9,052 9,052 9,052
Additional paid-in capital 58,600 35,302 35,302 35,302 35,302
Retained earnings 67,981 88,356 85,910 82,991 80,469
Treasury stock, at cost (167) (424) (276) (201) (48)
Accumulated other comprehensive income (loss) (369) 755 2,484 647 998
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TOTAL STOCKHOLDERS' EQUITY 136,002 133,041 132,472 127,791 125,773
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 1,467,608 $ 1,478,235 $ 1,315,775 $ 1,278,130 $ 1,259,508
============================================================================
FIRST COMMUNITY BANCSHARES, INC.
SELECTED FINANCIAL INFORMATION
(Dollars in Thousands)
AS OF AND FOR THE QUARTER ENDED
MARCH 31, DECEMBER 31, SEPTEMBER 30, JUNE 30, MARCH 31,
2002 2001 2001 2001 2001
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ASSET QUALITY ANALYSIS:
Allowance for Loan and Lease Losses:
Beginning balance $ 13,952 $ 12,889 $ 12,688 $ 12,408 $ 12,303
Provision 937 2,120 1,282 985 747
Acquisiton balance -- 484 -- -- --
Charge-offs (820) (1,781) (1,193) (1,045) (861)
Recoveries 202 240 112 340 219
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Net charge-offs (618) (1,541) (1,081) (705) (642)
Ending balance $ 14,271 $ 13,952 $ 12,889 $ 12,688 $ 12,408
==========================================================================
NONPERFORMING ASSETS:
Nonaccrual loans & leases $ 4,644 $ 3,633 $ 5,361 $ 5,167 $ 5,192
Foreclosed real estate 2,538 3,029 2,595 2,614 2,591
Loans 90 days or more past due & still accruing 192 1,351 1,418 1,442 1,393
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Nonperforming assets $ 7,374 $ 8,013 $ 9,374 $ 9,223 $ 9,176
==========================================================================
Loans 90 days or more past due & still accruing
as a percentage of total loans and leases 0.02% 0.15% 0.16% 0.17% 0.17%
ASSET QUALITY RATIOS:
Nonaccrual loans and leases as a
percentage of total loans and leases 0.51% 0.40% 0.62% 0.61% 0.63%
Nonperforming assets as a percentage of:
Total assets 0.50% 0.54% 0.71% 0.72% 0.73%
Loans & leases plus foreclosed property 0.81% 0.88% 1.08% 1.09% 1.11%
Net charge-offs as a percentage of average loans & leases 0.07% 0.18% 0.13% 0.09% 0.08%
Allowance for loan & lease losses as a percentage of loans
and leases 1.57% 1.54% 1.49% 1.50% 1.51%
Ratio of allowance for loans and lease losses to:
Nonaccrual loans & leases 3.07 3.84 2.40 2.46 2.39