First Community Bancshares, Inc. Announces Third Quarter 2017 Results and Quarterly Dividend

Company Release - 10/24/2017 4:00 PM ET

BLUEFIELD, Va., Oct. 24, 2017 (GLOBE NEWSWIRE) -- First Community Bancshares, Inc. (NASDAQ:FCBC) (www.firstcommunitybank.com) (the “Company”) today reported its unaudited results of operations and other financial information for the quarter and nine months ended September 30, 2017. The Company reported net income available to common shareholders of $7.65 million, or $0.45 per diluted common share for the quarter ended September 30, 2017, which represents a 21.62% increase in per share diluted earnings compared to the same quarter of 2016. Net income available to common shareholders was $20.27 million, or $1.19 per diluted common share for the nine months ended September 30, 2017, which represents an 11.21% increase in per share diluted earnings compared to the same period of 2016.

The Company also announced today that the Board of Directors declared a quarterly cash dividend to common shareholders of eighteen cents ($0.18) per common share. The quarterly dividend is payable to common shareholders of record on November 3, 2017, and is expected to be paid on or about November 17, 2017. The current year marks the 32nd consecutive year of cash dividends paid to stockholders.

Third Quarter 2017 Highlights

  • Income Statement
    • Net income available to common shareholders increased $1.27 million, or 19.88%, to $7.65 million compared to the same quarter of 2016.
    • Return on average assets increased 26 basis points to 1.29% and return on average common equity increased 103 basis points to 8.61% compared to the same quarter of 2016.
    • The non-GAAP efficiency ratio improved to 54.68% compared to 62.45% in the same quarter of 2016.
    • Diluted earnings per share increased $0.08, or 21.62%, to $0.45 compared to the same quarter of 2016.
    • Net interest margin increased 30 basis points to 4.25%, and normalized net interest margin increased 23 basis points to 4.00% compared to the same quarter of 2016.
       
  • Balance Sheet
    • Net charge-offs decreased $456 thousand, or 33.68%, to $898 thousand for the nine months ended September 30, 2017, compared to the same period of 2016.
    • Book value per common share increased $0.81 to $20.76 compared to December 31, 2016.
    • Tangible book value per common share increased $0.85 to $14.74 compared to December 31, 2016.
    • The Company and its subsidiary bank both significantly exceed regulatory “well capitalized” targets as of September 30, 2017.

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 its operational performance. The Company’s non-GAAP financial measures presented in this release include core earnings, the efficiency ratio, tangible book value per common share, average tangible common equity, and normalized net interest margin. Management believes that core earnings provide the Company and investors a valuable tool to evaluate the Company’s financial results. Management believes that the efficiency ratio provides important information about the Company’s operating expense control and efficiency of operations. Management also believes this ratio focuses attention on the core operating performance of the Company over time and is highly useful in comparing period-to-period operating performance of core business operations. The efficiency ratio used by the Company may not be comparable to efficiency ratios reported by other financial institutions. The reconciliations of these measures to GAAP measures are provided within this news release.

About First Community Bancshares, Inc.

First Community Bancshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 44 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of September 30, 2017. First Community Bank provides insurance services through First Community Insurance Services, which operates 6 in-branch locations in Virginia and West Virginia and offers wealth management and investment advice through its Trust Division and First Community Wealth Management, which collectively managed $936 million in combined assets as of September 30, 2017. The Company reported consolidated assets of $2.37 billion as of September 30, 2017. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. Additional investor information is available on the Company’s website at www.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 fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.


Financial Performance

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
 
 Three Months Ended Nine Months Ended
 September 30, June 30, March 31, December 31, September 30, September 30,
(Amounts in thousands, except share and per share data)2017 2017 2017 2016 2016 2017 2016
Interest income             
Interest and fees on loans$22,694  $22,914  $21,827  $21,956  $21,952  $67,435  $65,762 
Interest on securities 1,080   1,170   1,206   1,362   1,643   3,456   5,491 
Interest on deposits in banks 275   221   159   98   26   655   55 
Total interest income 24,049   24,305   23,192   23,416   23,621   71,546   71,308 
Interest expense             
Interest on deposits 1,275   1,233   1,166   1,145   1,133   3,674   3,334 
Interest on borrowings 724   778   885   1,314   1,367   2,387   4,051 
Total interest expense 1,999   2,011   2,051   2,459   2,500   6,061   7,385 
Net interest income 22,050   22,294   21,141   20,957   21,121   65,485   63,923 
Provision for (recovery of) loan losses 730   934   492   500   (1,154)  2,156   755 
Net interest income after              
provision (recovery) 21,320   21,360   20,649   20,457   22,275   63,329   63,168 
Total noninterest income 7,135   5,475   5,691   6,238   5,895   18,301   20,828 
Total noninterest expense 16,909   17,458   17,083   16,653   18,557   51,450   56,093 
Income before income taxes 11,546   9,377   9,257   10,042   9,613   30,180   27,903 
Income tax expense 3,894   2,959   3,055   3,638   3,230   9,908   9,181 
Net income available to common shareholders$7,652  $6,418  $6,202  $6,404  $6,383  $20,272  $18,722 
              
Earnings per common share             
Basic$0.45  $0.38  $0.36  $0.38  $0.37  $1.19  $1.07 
Diluted 0.45   0.38   0.36   0.38   0.37   1.19   1.07 
Cash dividends per common share 0.18   0.16   0.16   0.16   0.16   0.50   0.44 
Weighted average shares outstanding             
Basic 17,005,654   16,998,125   16,998,125   16,891,010   17,031,074   17,005,350   17,433,406 
Diluted 17,082,729   17,072,174   17,072,174   17,043,869   17,083,526   17,076,958   17,475,211 
Performance ratios             
Return on average assets 1.29%  1.08%  1.06%  1.05%  1.03%  1.14%  1.01%
Return on average common equity 8.61%  7.41%  7.35%  7.49%  7.58%  7.80%  7.40%
Return on average tangible common equity(1) 12.13%  10.51%  10.50%  10.75%  11.07%  11.06%  10.76%
              
                            
(1) A non-GAAP financial measure defined as average stockholders’ equity less average goodwill, other intangibles, and preferred stock liquidation preference
              

 

RECONCILIATION OF GAAP NET INCOME TO CORE EARNINGS (Unaudited)
              
 Three Months Ended Nine Months Ended
 September 30, June 30, March 31, December 31, September 30, September 30,
 2017 2017 2017 2016 2016 2017 2016
(Amounts in thousands, except per share data)             
Net income, GAAP$7,652  $6,418  $6,202  $6,404  $6,383  $20,272  $18,722 
Non-GAAP adjustments:             
Net gain on divestitures -   -   -   (619)  (3,065)  -   (3,065)
Allowance reversal for sold loans -   -   -   -   (1,354)  -   (1,354)
Merger, acquisition, and divestiture expense -   -   -   55   226   -   675 
Net loss (gain) on sale of securities -   657   -   (388)  (25)  657   53 
Net impairment losses -   -   -   -   4,635   -   4,646 
Other non-core items 34   (174)  (18)  (48)  (264)  (158)  (504)
Total adjustments to core earnings 34   483   (18)  (1,000)  153   499   451 
Tax effect 12   345   (7)  (708)  56   350   166 
Core earnings, non-GAAP(1)$7,674  $6,556  $6,191  $6,112  $6,480  $20,421  $19,007 
              
Core diluted earnings per common share$0.45  $0.38  $0.36  $0.36  $0.38  $1.19  $1.09 
Performance ratios             
Core return on average assets 1.29%  1.11%  1.06%  1.01%  1.05%  1.15%  1.03%
Core return on average common equity 8.63%  7.57%  7.33%  7.15%  7.70%  7.86%  7.51%
Core return on average tangible common equity(2) 12.16%  10.74%  10.48%  10.26%  11.24%  11.14%  10.92%
              
                            
(1) Excludes gains, losses, and impairment losses on securities; goodwill and intangible impairment; taxes; and other non-recurring income and expense items from net income
(2) A non-GAAP financial measure defined as average stockholders’ equity less average goodwill, other intangibles, and preferred stock liquidation preference
 


Net Interest Income and Margin

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
            
 Three Months Ended September 30,
 2017 2016
 Average    Average Yield/ Average    Average Yield/
(Amounts in thousands)Balance Interest(1) Rate(1) Balance Interest(1) Rate(1)
Assets           
Earning assets           
Loans(2)$1,843,612 $22,765 4.90% $1,820,899 $21,974 4.80%
Securities available for sale 157,038  1,373 3.47%  266,162  1,941 2.90%
Securities held to maturity 25,199  106 1.67%  72,210  189 1.04%
Interest-bearing deposits 73,802  275 1.48%  19,025  26 0.54%
Total earning assets 2,099,651  24,519 4.63%  2,178,296  24,130 4.41%
Other assets 258,763      282,310    
Total assets$2,358,414     $2,460,606    
            
Liabilities and stockholders' equity           
Interest-bearing deposits           
Demand deposits$384,594 $89 0.09% $337,893 $60 0.07%
Savings deposits 518,355  43 0.03%  523,503  62 0.05%
Time deposits 509,251  1,143 0.89%  529,344  1,011 0.76%
Total interest-bearing deposits 1,412,200  1,275 0.36%  1,390,740  1,133 0.32%
Borrowings           
Federal funds purchased -  - -   3,696  6 0.65%
Retail repurchase agreements 58,194  10 0.07%  64,385  12 0.07%
Wholesale repurchase agreements 25,000  203 3.22%  50,000  473 3.76%
FHLB advances and other borrowings 50,000  511 4.05%  133,838  876 2.60%
Total borrowings 133,194  724 2.16%  251,919  1,367 2.16%
Total interest-bearing liabilities 1,545,394  1,999 0.51%  1,642,659  2,500 0.61%
Noninterest-bearing demand deposits 440,227      462,588    
Other liabilities 20,101      20,462    
Total liabilities 2,005,722      2,125,709    
Stockholders' equity 352,692      334,897    
Total liabilities and stockholders' equity$2,358,414     $2,460,606    
Net interest income, FTE  $22,520     $21,630  
Net interest rate spread    4.12%     3.80%
Net interest margin    4.25%     3.95%
            
                  
(1) Fully taxable equivalent ("FTE") basis based on the federal statutory rate of 35%
(2) Nonaccrual loans are included in average balances; however, no related interest income is recorded during the period of nonaccrual.
            

 

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
            
 Nine Months Ended September 30,
 2017 2016
 Average    Average Yield/ Average    Average Yield/
(Amounts in thousands)Balance Interest(1) Rate(1) Balance Interest(1) Rate(1)
Assets           
Earning assets           
Loans(2)$1,841,981 $67,645 4.91% $1,775,744 $65,836 4.95%
Securities available for sale 162,198  4,312 3.55%  318,891  6,403 2.68%
Securities held to maturity 35,578  382 1.44%  72,350  575 1.06%
Interest-bearing deposits 66,069  655 1.33%  13,288  55 0.55%
Total earning assets 2,105,826  72,994 4.63%  2,180,273  72,869 4.47%
Other assets 264,333      287,784    
Total assets$2,370,159     $2,468,057    
            
Liabilities and stockholders' equity           
Interest-bearing deposits           
Demand deposits$384,265 $301 0.10% $339,920 $177 0.07%
Savings deposits 523,219  114 0.03%  533,799  191 0.05%
Time deposits 513,072  3,259 0.85%  527,056  2,966 0.75%
Total interest-bearing deposits 1,420,556  3,674 0.35%  1,400,775  3,334 0.32%
Borrowings           
Federal funds purchased 2  - 0.00%  5,393  26 0.64%
Retail repurchase agreements 61,951  31 0.07%  69,347  37 0.07%
Wholesale repurchase agreements 25,000  602 3.22%  50,000  1,410 3.77%
FHLB advances and other borrowings 57,357  1,754 4.09%  124,803  2,578 2.76%
Total borrowings 144,310  2,387 2.21%  249,543  4,051 2.17%
Total interest-bearing liabilities 1,564,866  6,061 0.52%  1,650,318  7,385 0.60%
Noninterest-bearing demand deposits 435,825      457,250    
Other liabilities 21,905      22,581    
Total liabilities 2,022,596      2,130,149    
Stockholders' equity 347,563      337,908    
Total liabilities and stockholders' equity$2,370,159     $2,468,057    
Net interest income, FTE  $66,933     $65,484  
Net interest rate spread    4.12%     3.87%
Net interest margin    4.25%     4.01%
            
                  
(1) Fully taxable equivalent ("FTE") basis based on the federal statutory rate of 35%
(2) Nonaccrual loans are included in average balances; however, no related interest income is recorded during the period of nonaccrual.
            

 

RECONCILIATION OF GAAP NET INTEREST MARGIN TO NON-GAAP NORMALIZED NET INTEREST MARGIN (Unaudited)
         
  Three Months Ended September 30,
  2017 2016
(Amounts in thousands)Interest(1) Average Yield/
Rate(1)
 Interest(1) Average Yield/
Rate(1)
Earning assets       
Loans(2)$22,765 4.90% $21,974 4.80%
Accretion income 1,925    1,683  
Less: cash accretion income 548    699  
Non-cash accretion income 1,377    984  
Loans, normalized(3) 21,388 4.60%  20,990 4.59%
Other earning assets 1,754 2.72%  2,156 2.40%
Total earning assets 23,142 4.37%  23,146 4.23%
Total interest-bearing liabilities 1,999 0.51%  2,500 0.61%
Net interest income, FTE(3)$21,143   $20,646  
Net interest rate spread, normalized(3)  3.86%   3.62%
Net interest margin, normalized(3)  4.00%   3.77%
         
          
(1)FTE basis based on the federal statutory rate of 35%       
(2)Nonaccrual loans are included in average balances; however, no related interest income is recorded during the period of nonaccrual.
(3)Normalized totals are non-GAAP financial measures that exclude non-cash loan interest accretion related to PCI loans.
         
  Nine Months Ended September 30,
   2017   2016 
(Amounts in thousands)Interest(1) Average Yield/
Rate(1)
 Interest(1) Average Yield/
Rate(1)
Earning assets       
Loans(2)$67,645 4.91% $65,836 4.95%
Accretion income 6,243    6,183  
Less: cash accretion income 1,986    2,290  
Non-cash accretion income 4,257    3,893  
Loans, normalized(3) 63,388 4.60%  61,943 4.66%
Other earning assets 5,349 2.71%  7,033 2.32%
Total earning assets 68,737 4.36%  68,976 4.23%
Total interest-bearing liabilities 6,061 0.52%  7,385 0.60%
Net interest income, FTE(3)$62,676   $61,591  
Net interest rate spread, normalized(3)  3.84%   3.63%
Net interest margin, normalized(3)  3.98%   3.77%
         
          
(1)FTE basis based on the federal statutory rate of 35%       
(2)Nonaccrual loans are included in average balances; however, no related interest income is recorded during the period of nonaccrual.
(3)Normalized totals are non-GAAP financial measures that exclude non-cash loan interest accretion related to PCI loans.
         


Noninterest Income and Expense

CONDENSED QUARTERLY STATEMENTS OF INCOME (Unaudited)
              
 Three Months Ended Nine Months Ended
 September 30, June 30, March 31, December 31, September 30, September 30,
(Amounts in thousands)2017 2017 2017 2016 2016 2017 2016
Noninterest income             
Wealth management$758  $791  $790  $681  $653  $2,339  $2,147 
Service charges on deposits 3,605   3,360   3,113   3,442   3,494   10,078   10,146 
Other service charges and fees 2,141   2,168   2,078   2,014   2,024   6,387   6,088 
Insurance commissions 306   325   373   59   1,592   1,004   5,383 
Net impairment losses recognized in earnings -   -   -   -   (4,635)  -   (4,646)
Net gain (loss) on sale of securities -   (657)  -   388   25   (657)  (53)
Net FDIC indemnification asset amortization (268)  (1,586)  (1,332)  (1,618)  (1,369)  (3,186)  (3,856)
Net gain on divestitures -   -   -   619   3,065   -   3,065 
Other operating income 593   1,074   669   653   1,046   2,336   2,554 
Total noninterest income 7,135   5,475   5,691   6,238   5,895   18,301   20,828 
Noninterest expense             
Salaries and employee benefits 9,137   9,157   8,884   9,411   9,828   27,178   30,501 
Occupancy expense 1,082   1,341   1,248   1,158   1,249   3,671   4,139 
Furniture and equipment expense 1,133   1,087   1,091   1,070   1,066   3,311   3,271 
Amortization of intangibles 266   263   261   265   316   790   871 
FDIC premiums and assessments 227   227   244   274   363   698   1,109 
Merger, acquisition, and divestiture expense -   -   -   55   226   -   675 
Other operating expense 5,064   5,383   5,355   4,420   5,509   15,802   15,527 
Total noninterest expense 16,909   17,458   17,083   16,653   18,557   51,450   56,093 
              


Efficiency Ratio

EFFICIENCY RATIO CALCULATION (Unaudited)
              
 Three Months Ended Nine Months Ended
 September 30, June 30, March 31, December 31, September 30, September 30,
 2017 2017 2017 2016 2016 2017 2016
(Amounts in thousands)             
Noninterest expense, GAAP$16,909  $17,458  $17,083  $16,653  $18,557  $51,450  $56,093 
Non-GAAP adjustments             
Merger, acquisition, and divestiture expense -   -   -   (55)  (226)  -   (675)
OREO expense and net loss (647)  (213)  (328)  (184)  (278)  (1,188)  (1,236)
Other non-core items (64)  (327)  -   8   (168)  (391)  (372)
Adjusted noninterest expense 16,198   16,918   16,755   16,422   17,885   49,871   53,810 
              
Net interest income, GAAP 22,050   22,294   21,141   20,957   21,121   65,485   63,923 
Noninterest income, GAAP 7,135   5,475   5,691   6,238   5,895   18,301   20,828 
Non-GAAP adjustments             
Tax equivalency adjustment 470   481   497   520   509   1,448   1,561 
Net impairment losses -   -   -   -   4,635   -   4,646 
Net loss (gain) on sale of securities -   657   -   (388)  (25)  657   53 
Net gain on divestitures -   -   -   (619)  (3,065)  -   (3,065)
Other non-core items (30)  (501)  (18)  (40)  (432)  (549)  (876)
Adjusted net interest and noninterest income 29,625   28,406   27,311   26,668   28,638   85,342   87,070 
              
Non-GAAP efficiency ratio(1) 54.68%  59.56%  61.35%  61.58%  62.45%  58.44%  61.80%
GAAP efficiency ratio 57.94%  62.87%  63.67%  61.24%  68.69%  61.41%  66.19%
              
                        
(1) A non-GAAP financial measure computed by dividing adjusted noninterest expense by the sum of tax equivalent net interest income and adjusted noninterest income    
     


Balance Sheet and Capital

CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited)
          
 September 30, June 30, March 31, December 31, September 30,
(Amounts in thousands, except per share data) 2017   2017   2017   2016   2016 
Assets         
Total cash and cash equivalents$105,119  $106,799  $152,851  $76,307  $65,929 
Securities available for sale 174,424   157,854   158,685   165,579   220,856 
Securities held to maturity 25,182   25,216   47,092   47,133   72,182 
Loans held for investment, net of unearned income         
Non-covered 1,805,429   1,796,263   1,784,371   1,795,954   1,774,547 
Covered 32,292   45,845   51,412   56,994   61,837 
Less allowance for loan losses (19,206)  (18,886)  (18,458)  (17,948)  (19,633)
Loans held for investment, net 1,818,515   1,823,222   1,817,325   1,835,000   1,816,751 
FDIC indemnification asset 7,465   8,159   9,931   12,173   14,332 
Premises and equipment, net 48,949   49,598   50,057   50,085   50,564 
Other real estate owned, non-covered 3,543   3,914   4,477   5,109   4,052 
Other real estate owned, covered 54   124   241   276   2,437 
Interest receivable 5,156   5,072   5,059   5,553   5,498 
Goodwill 95,779   95,779   95,779   95,779   101,776 
Other intangible assets 6,417   6,683   6,947   7,207   7,964 
Other assets 84,177   84,183   82,069   86,197   87,932 
Total assets$2,374,780  $2,366,603  $2,430,513  $2,386,398  $2,450,273 
          
Liabilities         
Deposits         
Noninterest-bearing$452,940  $443,800  $467,677  $427,705  $473,509 
Interest-bearing 1,410,880   1,413,574   1,438,917   1,413,633   1,388,390 
Total deposits 1,863,820   1,857,374   1,906,594   1,841,338   1,861,899 
Securities sold under agreements to repurchase 83,783   86,011   90,653   98,005   118,532 
FHLB borrowings 50,000   50,000   65,000   65,000   90,000 
Other borrowings -   -   244   15,708   15,707 
Interest, taxes, and other liabilities 24,540   24,443   24,618   27,290   26,599 
Total liabilities 2,022,143   2,017,828   2,087,109   2,047,341   2,112,737 
          
Stockholders' equity         
Common stock 21,382   21,382   21,382   21,382   21,382 
Additional paid-in capital 228,510   228,326   228,176   228,142   227,884 
Retained earnings 182,145   177,556   173,860   170,377   166,689 
Treasury stock, at cost (79,333)  (78,488)  (78,533)  (78,833)  (78,789)
Accumulated other comprehensive (loss) income (67)  (1)  (1,481)  (2,011)  370 
Total stockholders' equity 352,637   348,775   343,404   339,057   337,536 
Total liabilities and stockholders' equity$2,374,780  $2,366,603  $2,430,513  $2,386,398  $2,450,273 
          
Shares outstanding at period-end 16,986,502   17,017,071   17,013,185   16,994,208   16,988,972 
Book value per common share(1)$20.76  $20.50  $20.18  $19.95  $19.87 
Tangible book value per common share(2) 14.74   14.47   14.15   13.89   13.41 
          
                    
(1) Stockholders' equity divided by as-converted common shares outstanding
(2) A non-GAAP financial measure defined as stockholders’ equity less goodwill and other intangibles, divided by as-converted common shares outstanding
          


Asset Quality

SELECTED CREDIT QUALITY INFORMATION (Unaudited)
          
 September 30, June 30, March 31, December 31, September 30,
(Amounts in thousands)2017 2017 2017 2016 2016
Allowance for Loan Losses          
Beginning balance$18,886  $18,458  $17,948  $19,633  $21,099 
Provision for (recovery of) loan losses charged         
to operations 730   934   492   500   (1,154)
Charge-offs (717)  (902)  (357)  (2,485)  (772)
Recoveries 307   396   375   300   460 
Net (charge-offs) recoveries (410)  (506)  18   (2,185)  (312)
Ending balance$19,206  $18,886  $18,458  $17,948  $19,633 
          
Nonperforming Assets         
Non-covered nonperforming assets         
Nonaccrual loans$18,942  $20,146  $18,537  $15,854  $17,487 
Accruing loans past due 90 days or more -   -   20   -   62 
Troubled debt restructurings ("TDRs")(1) 141   100   -   114   115 
Total non-covered nonperforming loans 19,083   20,246   18,557   15,968   17,664 
OREO 3,543   3,914   4,477   5,109   4,052 
Total non-covered nonperforming assets$22,626  $24,160  $23,034  $21,077  $21,716 
          
Covered nonperforming assets         
Nonaccrual loans$420  $446  $918  $608  $688 
Total covered nonperforming loans 420   446   918   608   688 
OREO 54   124   241   276   2,437 
Total covered nonperforming assets$474  $570  $1,159  $884  $3,125 
          
Additional Information         
Performing TDRs(2)$8,101  $8,485  $8,593  $12,838  $13,336 
Total TDRs(3) 8,242   8,585   8,593   12,952   13,451 
          
Non-covered ratios         
Nonperforming loans to total loans 1.06%  1.13%  1.04%  0.89%  1.00%
Nonperforming assets to total assets 0.97%  1.04%  0.97%  0.90%  0.91%
Non-PCI allowance to nonperforming loans 100.64%  93.24%  99.40%  112.32%  111.08%
Non-PCI allowance to total loans 1.06%  1.05%  1.03%  1.00%  1.11%
Annualized net charge-offs to average loans 0.09%  0.11%  0.00%  0.49%  0.07%
          
Total ratios         
Nonperforming loans to total loans 1.06%  1.12%  1.06%  0.89%  1.00%
Nonperforming assets to total assets 0.97%  1.04%  1.00%  0.92%  1.01%
Allowance for loan losses to nonperforming loans 98.48%  91.27%  94.78%  108.28%  106.98%
Allowance for loan losses to total loans 1.05%  1.03%  1.01%  0.97%  1.07%
Annualized net charge-offs to average loans 0.09%  0.11%  0.00%  0.47%  0.07%
          
                                        
(1) Accruing TDRs restructured within the past six months or nonperforming
(2) Accruing TDRs with six months or more of satisfactory payment performance
(3) Accruing total TDRs


FOR MORE INFORMATION, CONTACT:
David D. Brown
(276) 326-9000

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Source: First Community Bancshares, Inc.