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

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  

/EIN News/ --

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  
Total covered nonperforming assets $   447     $   474     $   570     $   1,159     $   884  
                       
Additional Information                  
Performing TDRs(2) $   7,614     $   8,101     $   8,485     $   8,593     $   12,838  
Total TDRs(3)     7,734         8,242         8,585         8,593         12,952  
                       
Non-covered ratios                  
Nonperforming loans to total loans   1.07 %     1.06 %     1.13 %     1.04 %     0.89 %
Nonperforming assets to total assets   0.91 %     0.97 %     1.04 %     0.97 %     0.90 %
Non-PCI allowance to nonperforming loans   100.83 %     100.64 %     93.24 %     99.40 %     112.32 %
Non-PCI allowance to total loans   1.08 %     1.06 %     1.05 %     1.03 %     1.00 %
Annualized net charge-offs to average loans   0.12 %     0.09 %     0.11 %     0.00 %     0.49 %
                       
Total ratios                  
Nonperforming loans to total loans   1.07 %     1.06 %     1.12 %     1.06 %     0.89 %
Nonperforming assets to total assets   0.92 %     0.97 %     1.04 %     1.00 %     0.92 %
Allowance for loan losses to nonperforming loans   99.05 %     98.48 %     91.27 %     94.78 %     108.28 %
Allowance for loan losses to total loans   1.06 %     1.05 %     1.03 %     1.01 %     0.97 %
Annualized net charge-offs to average loans   0.12 %     0.09 %     0.11 %     0.00 %     0.47 %
                       
(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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