First Community Bancshares, Inc. Announces Fourth Quarter and Full Year 2017 Results and Quarterly Dividend

Company Release - 1/23/2018 4:56 PM ET

BLUEFIELD, Va., Jan. 23, 2018 (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 year ended December 31, 2017. The Company reported net income of $1.21 million, or $0.07 per diluted common share for the quarter ended December 31, 2017, and $21.49 million, or $1.26 per diluted common share for the year ended December 31, 2017.

On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Reform Act”), was enacted into law. The Tax Reform Act reduces the federal tax rate for corporations from 35% to 21%, effective January 1, 2018, and changes, or limits, certain tax deductions. As a result of the new law, generally accepted accounting principles in the United States (“GAAP”) require the immediate revaluation of deferred tax assets to a value reflective of the lower corporate tax rate. During the fourth quarter of 2017, the Company recorded a one-time estimated revaluation adjustment of approximately $6.55 million to reduce its net deferred tax asset, which increased the provision for income taxes.

Excluding the impact of the non-cash revaluation, fourth quarter earnings were $7.77 million, or $0.45 per diluted share, an increase of $1.36 million, or 21.25%, over fourth quarter 2016. Full year earnings exclusive of the revaluation were $28.04 million, an increase of $2.91 million, or 11.59%, over 2016 earnings. Adjusted return on assets and equity were 1.18% and 8.02%, respectively, both significant increases over the prior year.

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 February 2, 2018, and is expected to be paid on or about February 16, 2018. The current year marks the 33rd consecutive year of regular cash dividends paid to stockholders.

Fourth Quarter 2017 Highlights

  • Income Statement
    • Net income totaled $1.21 million, or $0.07 per diluted common share for the fourth quarter of 2017.
    • Excluding the impact of the one-time deferred tax asset revaluation, earnings increased $1.36 million, or 21.25% to $7.77 million and diluted earnings per share increased $0.07 to $0.45 compared to the same quarter of 2016.
    • The non-GAAP efficiency ratio improved to 57.04% compared to 61.58% in the same quarter of 2016.
    • Net interest margin increased 18 basis points to 4.17%, and normalized net interest margin increased 12 basis points to 3.95% compared to the same quarter of 2016.
  • Balance Sheet
    • Net charge-offs decreased $2.10 million, or 59.23%, to $1.44 million for the year ended December 31, 2017, compared to the same period of 2016.
    • Book value per common share increased $0.68 to $20.63 compared to December 31, 2016.
    • Tangible book value per common share increased $0.75 to $14.64 compared to December 31, 2016.
    • The Company and its subsidiary bank both significantly exceed regulatory “well capitalized” targets as of December 31, 2017.

Non-GAAP Financial Measures

The Company prepares its financial statements in accordance with 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 December 31, 2017. First Community Bank provides insurance services through First Community Insurance Services, which operates 8 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 $957 million in combined assets as of December 31, 2017. The Company reported consolidated assets of $2.39 billion as of December 31, 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.firstcommunitybank.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 Year Ended 
   December 31, September 30, June 30, March 31, December 31, December 31, 
(Amounts in thousands, except share and per share data) 2017   2017   2017   2017   2016   2017   2016  
Interest income              
 Interest and fees on loans$  22,314  $  22,694  $  22,914  $  21,827  $  21,956  $  89,749  $  87,718  
 Interest on securities   1,095     1,080     1,170     1,206     1,362     4,551     6,853  
 Interest on deposits in banks   353     275     221     159     98     1,008     153  
Total interest income   23,762     24,049     24,305     23,192     23,416     95,308     94,724  
Interest expense              
 Interest on deposits   1,313     1,275     1,233     1,166     1,145     4,987     4,479  
 Interest on borrowings   716     724     778     885     1,314     3,103     5,365  
Total interest expense   2,029     1,999     2,011     2,051     2,459     8,090     9,844  
Net interest income   21,733     22,050     22,294     21,141     20,957     87,218     84,880  
Provision for loan losses   615     730     934     492     500     2,771     1,255  
Net interest income after provision   21,118     21,320     21,360     20,649     20,457     84,447     83,625  
Total noninterest income    7,947     7,135     5,475     5,691     6,238     26,248     27,066  
Total noninterest expense   17,132     16,909     17,458     17,083     16,653     68,582     72,746  
Income before income taxes   11,933     11,546     9,377     9,257     10,042     42,113     37,945  
Income tax expense   10,720     3,894     2,959     3,055     3,638     20,628     12,819  
Net income$  1,213  $  7,652  $  6,418  $  6,202  $  6,404  $  21,485  $  25,126  
                 
Earnings per common share              
 Basic$  0.07  $  0.45  $  0.38  $  0.36  $  0.38  $  1.26  $  1.45  
 Diluted   0.07     0.45     0.38     0.36     0.38     1.26     1.45  
Cash dividends per common share   0.18     0.18     0.16     0.16     0.16     0.68     0.60  
Weighted average shares outstanding              
 Basic   16,992,519     17,005,654     17,012,189     16,998,125     16,891,010     17,002,116     17,319,689  
 Diluted   17,083,949     17,082,729     17,082,832     17,072,174     17,043,869     17,077,842     17,365,524  
Performance ratios              
 Return on average assets 0.20%  1.29%  1.08%  1.06%  1.05%  0.91%  1.02% 
 Return on average common equity 1.35%  8.61%  7.41%  7.35%  7.49%  6.14%  7.42% 
 Return on average tangible common equity(1) 1.89%  12.13%  10.51%  10.50%  10.75%  8.69%  10.76% 
                 
(1)A non-GAAP financial measure defined as average stockholders’ equity less average goodwill and other intangibles 


RECONCILIATION OF GAAP NET INCOME TO CORE EARNINGS (Unaudited) 
                 
   Three Months Ended Year Ended 
   December 31, September 30, June 30, March 31, December 31, December 31, 
    2017   2017   2017   2017   2016   2017   2016  
(Amounts in thousands, except per share data)              
Net income, GAAP$  1,213  $  7,652  $  6,418  $  6,202  $  6,404  $  21,485  $  25,126  
Non-GAAP adjustments:              
 Net gain on divestitures   -     -     -     -     (619)    -     (3,684) 
 Allowance reversal for sold loans   -     -     -     -     -     -     (1,354) 
 Merger, acquisition, and divestiture expense   -     -     -     -     55     -     730  
 Net loss (gain) on sale of securities   4     -     657     -     (388)    661     (335) 
 Net impairment losses   -     -     -     -     -     -     4,646  
 Deferred tax asset revaluation (estimated)   6,552     -     -     -     -     6,552     -  
 Other non-core items   (140)    34     (174)    (18)    (48)    (298)    (552) 
Total adjustments to core earnings   6,416     34     483     (18)    (1,000)    6,915     (549) 
Tax effect    (50)    12     345     (7)    (708)    301     (542) 
Core earnings, non-GAAP(1)$  7,679  $  7,674  $  6,556  $  6,191  $  6,112  $  28,099  $  25,119  
                 
Core diluted earnings per common share$  0.45  $  0.45  $  0.38  $  0.36  $  0.36  $  1.64  $  1.45  
Performance ratios              
 Core return on average assets 1.28%  1.29%  1.11%  1.06%  1.01%  1.19%  1.02% 
 Core return on average common equity 8.56%  8.63%  7.57%  7.33%  7.15%  8.04%  7.42% 
 Core return on average tangible common equity(2) 11.99%  12.16%  10.74%  10.48%  10.26%  11.36%  10.75% 
                 
(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 and other intangibles 

Net Interest Income and Margin

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
               
   Three Months Ended December 31, 
    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)$  1,822,583 $  22,387 4.87% $  1,846,848 $  22,012 4.74% 
 Securities available for sale   171,288    1,383 3.20%    193,342    1,644 3.38% 
 Securities held to maturity   25,165    105 1.66%    67,254    182 1.08% 
 Interest-bearing deposits   95,174    353 1.47%    35,470    98 1.10% 
Total earning assets   2,114,210    24,228 4.55%    2,142,914    23,936 4.44% 
Other assets    256,591        275,022     
Total assets$  2,370,801     $  2,417,936     
               
Liabilities and stockholders' equity            
Interest-bearing deposits            
 Demand deposits $  451,024 $  111 0.10% $  348,869 $  73 0.08% 
 Savings deposits    512,156    34 0.03%    522,864    57 0.04% 
 Time deposits   502,515    1,168 0.92%    519,521    1,015 0.78% 
Total interest-bearing deposits   1,465,695    1,313 0.36%    1,391,254    1,145 0.33% 
Borrowings            
 Federal funds purchased   -    - -     82    - 0.00% 
 Retail repurchase agreements   5,470    1 0.07%    66,776    12 0.07% 
 Wholesale repurchase agreements   25,000    204 3.24%    48,913    464 3.77% 
 FHLB advances and other borrowings   50,000    511 4.05%    92,175    838 3.62% 
Total borrowings   80,470    716 3.53%    207,946    1,314 2.51% 
Total interest-bearing liabilities   1,546,165    2,029 0.52%    1,599,200    2,459 0.61% 
Noninterest-bearing demand deposits   446,487        454,161     
Other liabilities   22,103        24,410     
Total liabilities   2,014,755        2,077,771     
Stockholders' equity   356,046        340,165     
Total liabilities and stockholders' equity$  2,370,801     $  2,417,936     
Net interest income, FTE  $  22,199     $  21,477   
Net interest rate spread    4.03%     3.83% 
Net interest margin    4.17%     3.99% 
               
(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)
               
   Year Ended December 31, 
    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)$  1,837,092 $  90,032 4.90% $  1,793,618 $  87,848 4.90% 
 Securities available for sale   164,489    5,695 3.46%    287,332    8,047 2.80% 
 Securities held to maturity   32,954    487 1.48%    71,069    757 1.07% 
 Interest-bearing deposits   73,405    1,008 1.37%    18,864    153 0.81% 
Total earning assets   2,107,940    97,222 4.61%    2,170,883    96,805 4.46% 
Other assets    262,381        284,575     
Total assets$  2,370,321     $  2,455,458     
               
Liabilities and stockholders' equity            
Interest-bearing deposits            
 Demand deposits $  401,092 $  412 0.10% $  342,169 $  250 0.07% 
 Savings deposits    520,430    148 0.03%    531,050    248 0.05% 
 Time deposits   510,411    4,427 0.87%    525,162    3,981 0.76% 
Total interest-bearing deposits   1,431,933    4,987 0.35%    1,398,381    4,479 0.32% 
Borrowings            
 Federal funds purchased   1    - 0.00%    4,058    26 0.64% 
 Retail repurchase agreements   47,716    32 0.07%    68,701    49 0.07% 
 Wholesale repurchase agreements   25,000    806 3.22%    49,727    1,874 3.77% 
 FHLB advances and other borrowings   55,502    2,265 4.08%    116,602    3,416 2.93% 
Total borrowings   128,219    3,103 2.42%    239,088    5,365 2.24% 
Total interest-bearing liabilities   1,560,152    8,090 0.52%    1,637,469    9,844 0.60% 
Noninterest-bearing demand deposits   438,513        456,474     
Other liabilities   21,955        23,040     
Total liabilities   2,020,620        2,116,983     
Stockholders' equity   349,701        338,475     
Total liabilities and stockholders' equity$  2,370,321     $  2,455,458     
Net interest income, FTE  $  89,132     $  86,961   
Net interest rate spread    4.09%     3.86% 
Net interest margin    4.23%     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 December 31,    
    2017   2016     
(Amounts in thousands)Interest(1) Average Yield/ Rate(1)  Interest(1) Average Yield/ Rate(1)     
Earning assets           
Loans(2)$  22,387 4.87% $  22,012 4.74%    
 Accretion income   1,620      1,506      
 Less: cash accretion income   460      633      
 Non-cash accretion income   1,160      873      
Loans, normalized(3)   21,227 4.62%    21,139 4.55%    
Other earning assets   1,841 2.50%    1,924 2.59%    
Total earning assets   23,068 4.33%    23,063 4.28%    
Total interest-bearing liabilities   2,029 0.52%    2,459 0.61%    
Net interest income, FTE(3)$  21,039   $  20,604      
Net interest rate spread, normalized(3)  3.81%   3.67%    
Net interest margin, normalized(3)  3.95%   3.83%    
              
(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. 
              
   Year Ended December 31,    
    2017   2016     
(Amounts in thousands)Interest(1) Average Yield/ Rate(1)  Interest(1) Average Yield/ Rate(1)     
Earning assets           
Loans(2)$  90,032 4.90% $  87,848 4.90%    
 Accretion income   7,863      7,690      
 Less: cash accretion income   2,446      2,924      
 Non-cash accretion income   5,417      4,766      
Loans, normalized(3)   84,615 4.61%    83,082 4.63%    
Other earning assets   7,190 2.65%    8,957 2.37%    
Total earning assets   91,805 4.36%    92,039 4.24%    
Total interest-bearing liabilities   8,090 0.52%    9,844 0.60%    
Net interest income, FTE(3)$  83,715   $  82,195      
Net interest rate spread, normalized(3)  3.84%   3.64%    
Net interest margin, normalized(3)  3.97%   3.79%    
              
(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 Year Ended 
  December 31, September 30, June 30, March 31, December 31, December 31, 
(Amounts in thousands) 2017   2017   2017   2017   2016   2017   2016  
Noninterest income              
 Wealth management$  811  $  758  $  791  $  790  $  681  $  3,150  $  2,828  
 Service charges on deposits   3,725     3,605     3,360     3,113     3,442     13,803     13,588  
 Other service charges and fees   2,237     2,141     2,168     2,078     2,014     8,624     8,102  
 Insurance commissions   343     306     325     373     59     1,347     5,442  
 Net impairment losses recognized in earnings   -     -     -     -     -     -     (4,646) 
 Net gain (loss) on sale of securities   (4)    -     (657)    -     388     (661)    335  
 Net FDIC indemnification asset amortization   (331)    (268)    (1,586)    (1,332)    (1,618)    (3,517)    (5,474) 
 Net gain on divestitures   -     -     -     -     619     -     3,684  
 Other operating income   1,166     593     1,074     669     653     3,502     3,207  
Total noninterest income    7,947     7,135     5,475     5,691     6,238     26,248     27,066  
Noninterest expense              
 Salaries and employee benefits   9,139     9,137     9,157     8,884     9,411     36,317     39,912  
 Occupancy expense   1,104     1,082     1,341     1,248     1,158     4,775     5,297  
 Furniture and equipment expense   1,114     1,133     1,087     1,091     1,070     4,425     4,341  
 Amortization of intangibles   266     266     263     261     265     1,056     1,136  
 FDIC premiums and assessments   212     227     227     244     274     910     1,383  
 Merger, acquisition, and divestiture expense   -     -     -     -     55     -     730  
 Other operating expense   5,297     5,064     5,383     5,355     4,420     21,099     19,947  
Total noninterest expense   17,132     16,909     17,458     17,083     16,653     68,582     72,746  

Efficiency Ratio

 

EFFICIENCY RATIO CALCULATION (Unaudited) 
                 
   Three Months Ended Year Ended 
   December 31, September 30, June 30, March 31, December 31, December 31, 
    2017   2017   2017   2017   2016   2017   2016  
(Amounts in thousands)              
Noninterest expense, GAAP$  17,132  $  16,909  $  17,458  $  17,083  $  16,653  $  68,582  $  72,746  
Non-GAAP adjustments              
 Merger, acquisition, and divestiture expense   -     -     -     -     (55)    -     (730) 
 OREO expense and net loss   (14)    (647)    (213)    (328)    (184)    (1,202)    (1,420) 
 Other non-core items   -     (64)    (327)    -     8     (391)    (364) 
Adjusted noninterest expense   17,118     16,198     16,918     16,755     16,422     66,989     70,232  
                 
Net interest income, GAAP   21,733     22,050     22,294     21,141     20,957     87,218     84,880  
Noninterest income, GAAP   7,947     7,135     5,475     5,691     6,238     26,248     27,066  
Non-GAAP adjustments              
 Tax equivalency adjustment   466     470     481     497     520     1,914     2,081  
 Net impairment losses   -     -     -     -     -     -     4,646  
 Net loss (gain) on sale of securities   4     -     657     -     (388)    661     (335) 
 Net gain on divestitures   -     -     -     -     (619)    -     (3,684) 
 Other non-core items   (140)    (30)    (501)    (18)    (40)    (689)    (916) 
Adjusted net interest and noninterest income   30,010     29,625     28,406     27,311     26,668     115,352     113,738  
                 
Non-GAAP efficiency ratio(1) 57.04%  54.68%  59.56%  61.35%  61.58%  58.07%  61.75% 
GAAP efficiency ratio 57.72%  57.94%  62.87%  63.67%  61.24%  60.44%  64.98% 
                 
(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)
            
   December 31, September 30, June 30, March 31, December 31,
(Amounts in thousands, except per share data) 2017   2017   2017   2017   2016 
Assets         
Total cash and cash equivalents$  157,951  $  105,119  $  106,799  $  152,851  $  76,307 
Securities available for sale    165,580     174,424     157,854     158,685     165,579 
Securities held to maturity    25,149     25,182     25,216     47,092     47,133 
Loans held for investment, net of unearned income         
 Non-covered   1,789,236     1,806,434     1,796,263     1,784,371     1,795,954 
 Covered   27,948     31,287     45,845     51,412     56,994 
 Less allowance for loan losses   (19,276)    (19,206)    (18,886)    (18,458)    (17,948)
Loans held for investment, net   1,797,908     1,818,515     1,823,222     1,817,325     1,835,000 
FDIC indemnification asset   7,161     7,465     8,159     9,931     12,173 
Premises and equipment, net   48,126     48,949     49,598     50,057     50,085 
Other real estate owned, non-covered   2,409     3,543     3,914     4,477     5,109 
Other real estate owned, covered   105     54     124     241     276 
Interest receivable   5,778     5,156     5,072     5,059     5,553 
Goodwill   95,779     95,779     95,779     95,779     95,779 
Other intangible assets   6,151     6,417     6,683     6,947     7,207 
Other assets   76,363     84,177     84,183     82,069     86,197 
Total assets$  2,388,460  $  2,374,780  $  2,366,603  $  2,430,513  $  2,386,398 
            
Liabilities         
Deposits         
 Noninterest-bearing$  454,143  $  452,940  $  443,800  $  467,677  $  427,705 
 Interest-bearing   1,475,748     1,410,880     1,413,574     1,438,917     1,413,633 
Total deposits   1,929,891     1,863,820     1,857,374     1,906,594     1,841,338 
Securities sold under agreements to repurchase   30,086     83,783     86,011     90,653     98,005 
FHLB borrowings   50,000     50,000     50,000     65,000     65,000 
Other borrowings   -     -     -     244     15,708 
Interest, taxes, and other liabilities   27,769     24,540     24,443     24,618     27,290 
Total liabilities   2,037,746     2,022,143     2,017,828     2,087,109     2,047,341 
            
Stockholders' equity         
Common stock   21,382     21,382     21,382     21,382     21,382 
Additional paid-in capital   228,750     228,510     228,326     228,176     228,142 
Retained earnings   180,299     182,145     177,556     173,860     170,377 
Treasury stock, at cost   (79,121)    (79,333)    (78,488)    (78,533)    (78,833)
Accumulated other comprehensive (loss) income   (596)    (67)    (1)    (1,481)    (2,011)
Total stockholders' equity   350,714     352,637     348,775     343,404     339,057 
Total liabilities and stockholders' equity$  2,388,460  $  2,374,780  $  2,366,603  $  2,430,513  $  2,386,398 
            
Shares outstanding at period-end   16,998,226     16,986,502     17,017,071     17,013,185     16,994,208 
Book value per common share(1)$  20.63  $  20.76  $  20.50  $  20.18  $  19.95 
Tangible book value per common share(2)   14.64     14.74     14.47     14.15     13.89 
            
(1)Stockholders' equity divided by common shares outstanding
(2)A non-GAAP financial measure defined as stockholders’ equity less goodwill and other intangibles, divided by common shares outstanding

Asset Quality

 

SELECTED CREDIT QUALITY INFORMATION (Unaudited)
            
   December 31, September 30, June 30, March 31, December 31,
(Amounts in thousands) 2017   2017   2017   2017   2016 
Allowance for Loan Losses          
Beginning balance$  19,206  $  18,886  $  18,458  $  17,948  $  19,633 
Provision for (recovery of) loan losses charged         
 to operations   615     730     934     492     500 
Charge-offs   (967)    (717)    (902)    (357)    (2,485)
Recoveries   422     307     396     375     300 
Net (charge-offs) recoveries    (545)    (410)    (506)    18     (2,185)
Ending balance$  19,276  $  19,206  $  18,886  $  18,458  $  17,948 
            
Nonperforming Assets         
Non-covered nonperforming assets         
Nonaccrual loans $  18,997  $  18,942  $  20,146  $  18,537  $  15,854 
Accruing loans past due 90 days or more   1     -     -     20     - 
Troubled debt restructurings ("TDRs")(1)   120     141     100     -     114 
Total non-covered nonperforming loans   19,118     19,083     20,246     18,557     15,968 
OREO   2,409     3,543     3,914     4,477     5,109 
Total non-covered nonperforming assets$  21,527  $  22,626  $  24,160  $  23,034  $  21,077 
            
Covered nonperforming assets         
Nonaccrual loans $  342  $  420  $  446  $  918  $  608 
Total covered nonperforming loans   342     420     446     918     608 
OREO   105     54     124     241     276