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Commenting on second quarter results, Chief Executive Officer John M. Mendez said, "Despite continued challenges in financial markets and weak economic conditions we produced solid core operating results for the second quarter. On the strength of our core operations, we were able to absorb the current elevated credit costs for the quarter, non-cash impairment charges stemming from the weakened operations of others in the industry and $988 thousand in special assessments by the FDIC." The non-cash impairment charges and the FDIC special assessment had the effect of decreasing second quarter earnings by approximately $0.15 per diluted share. Net Interest Income Tax-equivalent net interest margin for the second quarter of 2009 was 3.62%. Net interest income was $16.32 million, a decrease of $304 thousand, or 1.83%, from second quarter 2008. Interest income was $26.19 million, a decrease of $1.24 million, or 4.53%, from second quarter 2008. The decrease was due primarily to decreases in loan and securities yields reflecting a decrease of 200 basis points in the prime lending rate to 3.25% in the second quarter of 2009 from 5.25% in the second quarter of 2008. The yield on loans dropped to 6.19% from 6.78% while average loans increased $88.77 million to $1.27 billion from second quarter 2008, reflective of the Coddle Creek acquisition. Yields on loans have dropped as a direct result of the precipitous declines in market rates of interest. The Company also maintained an average federal funds sold position of $58 million through the second quarter. This increased liquidity position had a profound negative impact on net interest margin. Second quarter interest expense decreased $940 thousand, or 8.70%, from 2008. Second quarter deposit costs decreased $42 thousand compared to the second quarter of 2008, while the average rate paid on interest-bearing deposits decreased 47 basis points to 2.08%. Compared to the second quarter of 2008, interest costs on borrowings decreased $898 thousand to $2.79 million, while the average balance decreased $118.73 million due to the redemption of various wholesale debt issues and the Company's relatively liquid balance sheet. The second quarter cost of interest-bearing liabilities decreased 42 basis points compared to the second quarter of 2008. Average interest bearing liabilities increased $120.56 million, or 7.53%, compared with second quarter 2008, and included a decrease of $56.56 million in FHLB borrowings. Non-interest Income Wealth management revenues increased $35 thousand, or 3.19%, as investment advisory revenue increased $113 thousand. At June 30, 2009, the Wealth Management Division reported $811 million in assets under management. Service charges on deposit accounts were $3.49 million for the second quarter of 2009, an increase of $28 thousand, or 0.81%, from the second quarter of 2008. Insurance commissions were $1.64 million for the second quarter of 2009, an increase of $493 thousand, or 43.02%, from the same period in 2008. These revenues reflect GreenPoint's acquisitions of Carr & Hyde Insurance in December 2008 and REL Insurance in July 2008. The Company recognized approximately $2.08 million in net credit-related impairment charges on investment securities during the second quarter. Approximately $1.67 million of the charge is attributable to credit-related impairments in two pooled trust preferred holdings. In addition, the Company enhanced and increased the default and deferral assumptions used this quarter. The impairment charges resulted from increasing levels of underlying defaults and deferrals. The remaining $406 thousand was due to impairment recognized on certain equity securities. Non-interest Expenses Excluding penalties on debt prepayment, non-interest expenses for the second quarter of 2009 increased $1.30 million, or 8.78%, from the second quarter of 2008. Salaries and employee benefits decreased $175 thousand, or 2.31%, from the second quarter of 2008. Branches from the November 2008 acquisition of Coddle Creek Financial accounted for an increase in salaries and employee benefits of approximately $291 thousand and GreenPoint acquisitions accounted for an increase of approximately $360 thousand. The remainder of the Company showed an overall decrease of $826 thousand, a result of increased efficiency initiatives. Occupancy and furniture and equipment expenses increased due to the Coddle Creek acquisition, new branches, and the addition of operating expenses at GreenPoint, as it acquired new agencies throughout 2008. During the second quarter the Company accrued approximately $988 thousand for the special FDIC assessment. Other non-interest expenses increased $141 thousand, or 2.97%, compared to the second quarter of 2008. The second quarter efficiency ratio was 58.62% compared to 57.55% in the second quarter of 2008. The acquisition of Coddle Creek was completed in November, and integration is largely complete. The Company continues to be on track to realize its projected pre-tax cost savings of approximately $1.65 million, or 42%, in 2009. Credit Quality The Company's loan quality measures at June 30, 2009 continue to compare favorably to the Company's peers and the industry. Total loan delinquencies, including non-accrual loans, as a percent of total loans were 1.35% at June 30, 2009, compared with 1.59% at March 31, 2009 and 1.97% at December 31, 2008. The ratio of allowance for loan losses as a percent of loans held for investment was 1.31% at June 30, 2009, compared with 1.30% at March 31, 2009 and 1.23% at December 31, 2008. Non-performing assets increased slightly to $15.26 million at June 30, 2009, from $13.74 million at March 31, 2009 and $14.09 million at December 31, 2008. Non-performing loans as a percentage of loans held for investment were 0.92% compared with 0.83% at March 31, 2009 and 0.98% at December 31, 2008. Mr. Mendez added, "We are pleased that our loan portfolio continues to perform well in the face of a prolonged recessionary economy. This is a tribute to our credit processes and the markets which we serve." Net charge-offs for the second quarter of 2009 were $2.43 million, and the Company made a provision for loan losses of $2.55 million in the second quarter of 2009 compared with $937 thousand in the second quarter of 2008. Mr. Mendez continued, "Despite elevated net charge-offs for the quarter, we are pleased with the overall level of asset quality measures, particularly our controlled level of non-performing assets at 69 basis points, which is well below the industry average." Balance Sheet Since year-end 2008, consolidated assets have increased $69.87 million to $2.20 billion at June 30, 2009 driven by an increase in deposits of $43.60 million and $61.67 million in new capital from the June 2009 equity offering. Total stockholders' equity for the Company was $283.58 million, resulting in a book value per common share outstanding of $14.32 at June 30, 2009, compared to $220.34 million and $15.46 per common share at December 31, 2008. Earlier this month the board of directors announced a $0.10 per share dividend on common shares. 2009 is the Company's 24th consecutive year of dividends to common shareholders. TARP Repayment On July 8, 2009 First Community repaid all of the $41.50 million in funds to the United States Treasury obtained under the Capital Purchase Program commonly referred to as TARP. First Community was one of the first companies to be offered funds from the Treasury Department and is now among the first banks to repay the government's investment. The Company expects to recognize a deemed dividend of approximately $972 thousand associated with the discount in the third quarter of 2009 which will decrease net income available to common shareholders by the same amount. TriStone Merger The TriStone Community Bank merger is progressing towards a third quarter closing. All regulatory approvals have been received and the shareholder meeting will be held July 30, 2009. The transaction is expected to add approximately $152 million in assets and an excellent team of bankers in the Winston-Salem, North Carolina market. The Company will host an investor and media teleconference and webcast on Friday, July 24, 2009 at 11:00 a.m. To access the teleconference, the toll-free number is (877) 407-8033. Alternatively, individuals may listen to the live or archived webcast of the conference call. To listen to the webcast, visit www.fcbinc.com and follow the link under the Current News Releases section. The Company's press release and financial summary will be available in this section, as well. Copies of the Company's second quarter 2009 earnings press release and financial summary will also be made available upon request via fax, email or postal service mail. To request a copy, contact David D. Brown, Chief Financial Officer, at (800) 425-0839. First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a $2.20 billion financial holding company and is the parent company of First Community Bank, N. A. First Community Bank, N. A. operates through fifty-nine locations in the five states of Virginia, West Virginia, North Carolina, South Carolina, and Tennessee. First Community Bank, N. A. offers wealth management services through its Trust & Financial Services Division and Investment Planning Consultants, Inc., a registered investment advisory firm which offers wealth management and investment advice. The Company's wealth management group managed assets with a market value of $811 million at June 30, 2009. First Community is also the parent company of GreenPoint Insurance Group, Inc., a full-service insurance agency located in High Point, North Carolina. First Community Bancshares, Inc.'s common stock is traded on the NASDAQ Global Select Market under the symbol, "FCBC". Additional investor information can be found on the Internet 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 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.
First Community Bancshares, Inc. Three Months Ended Six Months Ended
Consolidated Statements of Income June 30, June 30,
(In Thousands, Except Share and Per Share Data)(Unaudited) 2009 2008 2009 2008
Interest Interest and fees on loans held for investment $ 19,571 $ 19,891 $ 39,555 $ 41,128
Income Interest on securities-taxable 5,177 5,467 10,341 11,534
Interest on securities-nontaxable 1,402 2,004 3,078 4,067
Interest on federal funds sold and deposits 39 71 78 251
Total interest income 26,189 27,433 53,052 56,980
Interest Interest on deposits 7,076 7,118 14,643 15,859
Expense Interest on borrowings 2,792 3,690 5,655 8,136
Total interest expense 9,868 10,808 20,298 23,995
Net interest income 16,321 16,625 32,754 32,985
Provision for loan losses 2,552 937 4,639 1,260
Net interest income after provision for loan losses 13,769 15,688 28,115 31,725
Non-Interest Wealth management income 1,133 1,098 2,117 1,997
Income Service charges on deposit accounts 3,491 3,463 6,648 6,562
Other service charges and fees 1,133 1,064 2,311 2,185
Insurance commissions 1,639 1,146 3,956 2,490
Total other-than-temporary impairment loss (23,469 ) - (23,678 ) -
Portion of loss recognized in OCI 21,393 - 21,393 -
Net impairment losses recognized in earnings (2,076 ) - (2,285 ) -
Security gains 1,653 150 2,064 1,970
Other operating income 349 803 935 1,661
Total non-interest income 7,322 7,724 15,746 - 16,865
Non-Interest Salaries and employee benefits 7,405 7,580 15,271 15,370
Expense Occupancy expense of bank premises 1,333 1,256 2,936 2,420
Furniture and equipment expense 892 973 1,830 1,874
Amortization of intangible assets 244 158 489 318
Prepayment penalty 88 - 88 1,647
FDIC premiums and assessments 1,287 39 1,475 79
Other operating expense 4,894 4,753 9,248 9,334
Total non-interest expense 16,143 14,759 31,337 31,042
Income before income taxes 4,948 8,653 12,524 17,548
Income tax expense 1,481 2,415 3,827 4,998
Net income 3,467 6,238 8,697 12,550
Dividends on preferred stock 578 - 1,149 -
Net income available to common shareholders $ 2,889 $ 6,238 $ 7,548 $ 12,550
Basic earnings per common share (EPS) $ 0.23 $ 0.57 $ 0.62 $ 1.14
Diluted earnings per common share (DEPS) $ 0.23 $ 0.56 $ 0.62 $ 1.13
Weighted Average Shares Outstanding:
Basic 12,696,202 10,992,301 12,135,103 11,011,116
Diluted 12,741,080 11,073,440 12,181,843 11,091,714
For the period:
Return on average assets 0.53 % 1.23 % 0.70 % 1.22 %
Return on average common equity 6.05 % 12.08 % 8.23 % 11.87 %
Cash dividends per common share $ 0.20 $ 0.28 $ 0.20 $ 0.56
First Community Bancshares, Inc.
Quarterly Performance Summary As of and for the Quarter Ended
Income Statements June 30, March 31, December 31, September 30, June 30,
(In Thousands, Except Share and Per Share Data)(Unaudited) 2009 2009 2008 2008 2008
Interest Interest and fees on loans held for investment $ 19,571 $ 19,984 $ 19,830 $ 19,266 $ 19,891
Income Interest on securities-taxable 5,177 5,164 5,613 5,567 5,467
Interest on securities-nontaxable 1,402 1,676 1,746 1,708 2,004
Interest on federal funds sold and deposits 39 39 46 9 71
Total interest income 26,189 26,863 27,235 26,550 27,433
Interest Interest on deposits 7,076 7,567 7,249 6,684 7,118
Expense Interest on borrowings 2,792 2,863 3,459 3,543 3,690
Total interest expense 9,868 10,430 10,708 10,227 10,808
Net interest income 16,321 16,433 16,527 16,323 16,625
Provision for loan losses 2,552 2,087 2,701 3,461 937
Net interest income after provision for loan losses 13,769 14,346 13,826 12,862 15,688
Non-Int Wealth management income 1,133 984 1,146 957 1,098
Income Service charges on deposit accounts 3,491 3,157 3,697 3,808 3,463
Other service charges and fees 1,133 1,178 1,023 1,040 1,064
Insurance commissions 1,639 2,317 1,258 1,240 1,146
Total other-than-temporary impairment loss (23,469 ) (209 ) (29,923 ) - -
Portion of loss recognized in OCI 21,393 - - - -
Net impairment losses recognized in earnings (2,076 ) (209 ) (29,923 ) - -
Securities gains (losses) 1,653 411 (234 ) 163 150
Other operating income 349 586 659 675 803
Total non-interest income 7,322 8,424 (22,374 ) 7,883 7,724
Non-Int Salaries and employee benefits 7,405 7,866 7,135 7,371 7,580
Expense Occupancy expense of bank premises 1,333 1,603 1,385 1,297 1,256
Furniture and equipment expense 892 938 942 924 973
Amortization of intangible assets 244 245 205 166 158
Prepayment penalty 88 - - - -
FDIC premiums and assessments 1,287 188 61 62 39
Other operating expense 4,894 4,354 5,305 4,621 4,753
Total non-interest expense 16,143 15,194 15,033 14,441 14,759
Income (loss) before income taxes 4,948 7,576 (23,581 ) 6,304 8,653
Income tax expense (benefit) 1,481 2,346 (9,561 ) 1,753 2,415
Net income (loss) 3,467 5,230 (14,020 ) 4,551 6,238
Preferred dividends 578 571 255 - -
Net income (loss) available to common shareholders $ 2,889 $ 4,659 $ (14,275 ) $ 4,551 $ 6,238
Per Basic EPS $ 0.23 $ 0.40 $ (1.27 ) $ 0.42 $ 0.57
Share Diluted EPS $ 0.23 $ 0.40 $ (1.27 ) $ 0.41 $ 0.56
Cash dividends per common share $ 0.20 $ - $ 0.28 $ 0.28 $ 0.28
Weighted Average Shares Outstanding:
Basic 12,696,202 11,567,769 11,252,183 10,956,867 10,992,301
Diluted 12,741,080 11,616,568 11,252,183 11,034,059 11,073,440
First Community Bancshares, Inc.
Quarterly Balance Sheets
(Unaudited) June 30, March 31, December 31, September 30, June 30,
2009 2009 2008 2008 2008
(In Thousands)
Cash and due from banks $ 116,095 $ 100,881 $ 39,310 $ 53,238 $ 44,672
Interest-bearing deposits with banks 28,354 79 7,129 664 10,745
Securities available for sale 521,879 549,664 520,723 513,001 598,438
Securities held to maturity 7,725 8,471 8,670 9,043 10,511
Loans held for sale 802 1,445 1,024 140 1,522
Loans held for investment, net of unearned income 1,269,444 1,276,790 1,298,159 1,168,286 1,181,107
Less allowance for loan losses 16,678 16,555 15,978 14,510 13,433
Net loans 1,253,569 1,261,680 1,283,205 1,153,916 1,169,196
Premises and equipment 55,193 54,893 55,024 50,504 50,075
Other real estate owned 3,615 3,114 1,326 896 500
Interest receivable 8,934 8,848 10,084 9,156 9,992
Intangible assets 89,534 89,338 89,612 72,222 71,181
Other assets 118,282 122,173 118,231 104,817 88,377
Total Assets $ 2,203,180 $ 2,199,141 $ 2,133,314 $ 1,967,457 $ 2,053,687
Deposits:
Demand $ 202,543 $ 207,947 $ 199,712 $ 214,582 $ 224,716
Interest-bearing demand 195,905 194,934 185,117 186,403 172,623
Savings 311,435 319,007 309,577 312,451 312,148
Time 837,475 861,556 809,352 636,108 629,920
Total Deposits 1,547,357 1,583,444 1,503,758 1,349,544 1,339,407
Interest, taxes and other liabilities 27,577 28,293 27,423 20,494 18,695
Federal funds purchased - - - 29,500 66,500
Securities sold under agreements to repurchase 153,804 153,824 165,914 180,388 215,610
FHLB and other indebtedness 190,862 215,870 215,877 216,720 216,862
Total Liabilities 1,919,601 1,981,431 1,912,972 1,796,646 1,857,074
Preferred stock, net of discount 40,525 40,471 40,419 - -
Common stock 17,341 12,051 12,051 11,499 11,499
Additional paid-in capital 183,955 127,992 128,526 108,862 108,926
Retained earnings 118,058 118,021 107,231 124,731 123,253
Treasury stock, at cost (13,712 ) (14,453 ) (15,368 ) (16,882 ) (17,328 )
Accumulated other comprehensive loss (62,588 ) (66,372 ) (52,517 ) (57,399 ) (29,737 )
Total Stockholders' Equity 283,579 217,710 220,342 170,811 196,613
Total Liabilities and
Stockholders' Equity $ 2,203,180 $ 2,199,141 $ 2,133,314 $ 1,967,457 $ 2,053,687
Actual shares outstanding at period end 16,909,592 11,596,249 11,567,449 10,967,597 10,954,078
Book value per common share at period end $ 14.32 $ 15.20 $ 15.46 $ 15.57 $ 17.95
Tangible book value per common share at period end (1) $ 9.02 $ 7.49 $ 7.71 $ 8.99 $ 11.45
(1) Tangible book value is defined as stockholders' equity less
goodwill and other intangibles.
First Community Bancshares, Inc.
Selected Financial Information
(Unaudited) As of and for the Quarter Ended
June 30, March 31, December 31, September 30, June 30,
2009 2009 2008 2008 2008
(Dollars in Thousands)
Summary of Loan Loss Experience
Allowance for loan losses:
Beginning balance $ 16,555 $ 15,978 $ 14,510 $ 13,433 $ 12,862
Balance acquired - - 1,169 - -
Provision for loan losses 2,552 2,087 2,701 3,461 937
Charge-offs (2,681 ) (1,730 ) (2,606 ) (2,601 ) (1,198 )
Recoveries 252 220 204 217 832
Net charge-offs (2,429 ) (1,510 ) (2,402 ) (2,384 ) (366 )
Ending balance $ 16,678 $ 16,555 $ 15,978 $ 14,510 $ 13,433
Summary of Asset Quality
Nonaccrual loans $ 11,645 $ 10,628 $ 12,763 $ 6,997 $ 4,126
Loans 90 days or more past due and still accruing - - - - -
Total non-performing loans 11,645 10,628 12,763 6,997 4,126
Other real estate owned 3,615 3,114 1,326 896 500
Total non-performing assets $ 15,260 $ 13,742 $ 14,089 $ 7,893 $ 4,626
Asset Quality Ratios
Non-performing loans as a percentage of loans held for investment 0.92 % 0.83 % 0.98 % 0.60 % 0.35 %
Non-performing assets as a percentage of total assets 0.69 % 0.62 % 0.66 % 0.40 % 0.23 %
Annualized net charge-offs as a percentage of average loans held 0.77 % 0.47 % 0.77 % 0.81 % 0.12 %
for investment
Allowance for loan losses as a percentage of loans held for 1.31 % 1.30 % 1.23 % 1.24 % 1.14 %
investment
Ratio of allowance for loan losses to non-performing loans 1.43 1.56 1.25 2.07 3.26
First Community Bancshares, Inc.
Selected Financial Information
(Unaudited) As of and for the Quarter Ended
June 30, March 31, December 31, September 30, June 30,
2009 2009 2008 2008 2008
(Dollars in Thousands)
Ratios
Return on average assets 0.53 % 0.87 % -2.77 % 0.90 % 1.23 %
Return on average common equity 6.05 % 10.61 % -33.28 % 9.39 % 12.08 %
Net interest margin 3.62 % 3.73 % 3.93 % 3.90 % 3.92 %
Efficiency ratio for the quarter (a) 58.62 % 58.25 % 57.97 % 56.62 % 57.55 %
Efficiency ratio year-to-date (a) 58.43 % 58.25 % 57.54 % 57.39 % 57.78 %
Equity as a percent of total assets at end of period 12.87 % 9.90 % 10.33 % 8.68 % 9.57 %
Average earning assets as a percentage of average total assets 86.78 % 86.68 % 86.38 % 87.89 % 88.83 %
Average loans as a percentage of average deposits 81.19 % 82.83 % 86.01 % 88.25 % 88.10 %
Average Balances
Investments $ 564,934 $ 521,776 $ 508,289 $ 582,605 $ 623,338
Loans 1,269,584 1,292,179 1,235,023 1,174,855 1,180,813
Earning assets 1,892,403 1,887,583 1,768,113 1,758,895 1,817,322
Total assets 2,180,779 2,177,762 2,046,879 2,001,191 2,045,773
Deposits 1,563,640 1,560,109 1,435,956 1,331,293 1,340,384
Interest-bearing deposits 1,361,970 1,360,798 1,230,547 1,120,138 1,122,680
Borrowings 359,628 372,282 400,393 459,475 478,361
Interest-bearing liabilities 1,721,597 1,733,080 1,630,940 1,579,613 1,601,041
Equity 233,093 219,653 189,122 192,743 207,660
Tax equivalent net interest income 17,093 17,349 17,483 17,264 17,726
(a) Excludes securities gains/losses, intangible amortization,
foreclosed property expenses, non-recurring income and expense
items, and includes tax equivalency adjustment.
First Community Bancshares, Inc.
Investment Securities Portfolio
June 30, 2009 Unrealized Cumulative
(Unaudited) Gains/(Losses) OTTI
Par Fair Amortized Recognized Recognized in
Value Value Cost in AOCI Earnings
(Dollars in Thousands)
Available for sale
Agency $ 53,435 $ 53,830 $ 53,426 404 $ -
Agency mortgage-backed 248,216 252,502 250,279 2,223 -
Non-Agency MBS
AAA 6,632 5,258 6,596 (1,338 ) -
CCC 25,000 10,503 20,968 (10,465 ) 4,252
Total 31,632 15,761 27,564 (11,803 ) 4,252
Municipals
AAA 5,919 5,921 5,920 1 -
AA 51,096 50,635 51,061 (426 ) -
A 57,444 56,158 57,438 (1,280 ) -
BBB 13,090 12,767 12,994 (227 ) -
NR 9,540 8,485 8,945 (460 ) -
Total 137,089 133,966 136,358 (2,392 ) -
Single issue bank trust preferred
AA 5,764 2,956 4,902 (1,946 ) -
A 22,430 12,115 21,880 (9,765 ) -
BBB 31,204 17,440 28,770 (11,330 ) -
Total 59,398 32,511 55,552 (23,041 ) -
Pooled trust preferred
CCC 7,887 2,480 7,934 (5,454 ) -
CC 80,967 24,727 63,913 (39,186 ) 17,126
C 20,123 943 20,123 (19,180 ) -
Total 108,977 28,150 91,970 (63,820 ) 17,126
Equity securities - 5,159 5,476 (317 ) 615
Total $ 638,747 $ 521,879 $ 620,625 $ (98,746 ) $ 21,993
Cumulative
OTTI
Par Fair Amortized Unrealized Recognized in
Held to maturity Value Value Cost Gains/(Losses) Earnings
Municipals
AA 2,930 2,966 2,918 48 -
A 4,062 4,044 3,973 71 -
BBB 835 836 834 2 -
Total 7,827 7,846 7,725 121 -
In cases where investment securities were not identically rated by two or more securities rating agencies, the lowest rating was used. Amortized cost and cumulative OTTI include a pre-tax cumulative effect adjustment of approximately $10.44 million in connection with adoption of FSP FAS 115-2 and FAS 124-2. First Community Bancshares, Inc.
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited)
Three Months Ended June 30,
2009 2008
Yield/ Yield/
Average Interest Rate Average Interest Rate
Balance (1) (1) Balance (1) (1)
(Dollars in Thousands)
Earning assets
Loans held for investment (2) $ 1,269,584 $ 19,588 6.19 % $ 1,180,813 $ 19,912 6.78 %
Securities available for sale 557,110 7,169 5.16 % 612,411 8,278 5.44 %
Held to maturity securities 7,824 164 8.41 % 10,927 273 10.05 %
Interest-bearing deposits with banks 57,885 39 0.27 % 13,171 71 2.17 %
Total earning assets 1,892,403 $ 26,960 5.71 % 1,817,322 $ 28,534 6.31 %
Other assets 288,376 228,451
Total $ 2,180,779 $ 2,045,773
Interest-bearing liabilities
Interest-bearing demand deposits $ 197,710 $ 81 0.16 % $ 174,100 $ 65 0.15 %
Savings deposits 317,700 540 0.68 % 308,344 1,188 1.55 %
Time deposits 846,560 6,455 3.06 % 640,236 5,866 3.69 %
Fed funds purchased - - 9,932 60 2.44 %
Retail repurchase agreements 101,525 333 1.32 % 153,768 788 2.06 %
Wholesale repurchase agreements 50,000 465 3.73 % 50,000 214 1.72 %
FHLB borrowings & other long-term debt 208,103 1,994 3.84 % 264,661 2,627 3.99 %
Total interest-bearing liabilities 1,721,597 9,868 2.30 % 1,601,041 10,808 2.72 %
Noninterest-bearing demand deposits 201,670 217,704
Other liabilities 24,419 19,368
Stockholders' equity 233,093 207,660
Total $ 2,180,779 $ 2,045,773
Net interest income $ 17,093 $ 17,726
Net interest rate spread (3) 3.41 % 3.59 %
Net interest margin (4) 3.62 % 3.92 %
(1) Fully taxable equivalent at the rate of 35%.
(2) Non-accrual loans are included in average balances outstanding but
with no related interest income during the period of non-accrual.
(3) Represents the difference between the yield on earning assets and
cost of funds.
(4) Represents tax equivalent net interest income divided by average
earning assets.
First Community Bancshares, Inc.
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited)
Six Months Ended June 30,
2009 2008
Yield/ Yield/
Average Interest Rate Average Interest Rate
Balance (1) (1) Balance (1) (1)
(Dollars in Thousands)
Earning assets
Loans held for investment (2) $ 1,280,394 $ 39,584 6.23 % $ 1,193,147 $ 41,169 6.94 %
Securities available for sale 535,326 14,741 5.55 % 617,843 17,276 5.62 %
Held to maturity securities 8,147 336 8.32 % 11,501 515 9.00 %
Interest-bearing deposits with banks 65,713 78 0.24 % 17,887 251 2.82 %
Total earning assets 1,889,580 $ 54,739 5.84 % 1,840,378 $ 59,211 6.47 %
Other assets 289,273 228,202
Total $ 2,178,853 $ 2,068,580
Interest-bearing liabilities
Interest-bearing demand deposits $ 193,983 $ 160 0.17 % $ 168,138 $ 140 0.17 %
Savings deposits 315,146 1,196 0.77 % 317,702 2,675 1.69 %
Time deposits 852,258 13,287 3.14 % 656,440 13,044 4.00 %
Fed funds purchased - - 5,875 79 2.70 %
Retail repurchase agreements 103,984 723 1.40 % 151,675 1,809 2.40 %
Wholesale repurchase agreements 50,000 975 3.93 % 50,000 687 2.76 %
FHLB borrowings & other long-term debt 211,511 3,957 3.77 % 270,583 5,561 4.13 %
Total interest-bearing liabilities 1,726,882 20,298 2.37 % 1,620,413 23,994 2.98 %
Noninterest-bearing demand deposits 200,497 215,338
Other liabilities 25,064 20,159
Stockholders' equity 226,410 212,670
Total $ 2,178,853 $ 2,068,580
Net interest income $ 34,442 $ 35,217
Net interest rate spread (3) 3.47 % 3.49 %
Net interest margin (4) 3.68 % 3.85 %
(1) Fully taxable equivalent at the rate of 35%.
(2) Non-accrual loans are included in average balances outstanding but
with no related interest income during the period of non-accrual.
(3) Represents the difference between the yield on earning assets and
cost of funds.
(4) Represents tax equivalent net interest income divided by average
earning assets.
SOURCE: First Community Bancshares, Inc. First Community Bancshares, Inc. David D. Brown, 276-326-9000 For full details for FCBC click here.
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