First Community Bancshares, Inc. Announces First Quarter 2012 Results

First Community Bancshares, Inc. Announces First Quarter 2012 Results

BLUEFIELD, Va., April 23, 2012 (GLOBE NEWSWIRE) -- First Community Bancshares,
Inc. (Nasdaq:FCBC) (www.fcbinc.com) (the "Company") today reported net income
of $6.00 million for the quarter ended March 31, 2012. Net income available to
common shareholders totaled $5.72 million, or $0.31 per diluted common share,
for the quarter ended March 31, 2012.

First Quarter 2012 Highlights –

  *Net income increased $1.71 million, or 39.72%, compared to the fourth
    quarter of 2011 and $250 thousand, or 4.35%, compared with the first
    quarter of 2011.
  *Core earnings increased $827 thousand, or 15.35%, compared with the first
    quarter of 2011.
  *Core return on average assets was 1.15% and core return on average
    tangible common equity was 12.22% for the first quarter of 2011.
  *Deposit and borrowing costs decreased $1.61 million, or 25.49%, compared
    with the first quarter of 2011.
  *Operating costs decreased $1.87 million, or 10.35%, compared with the
    first quarter of 2011.
  *The provision for loan losses was reduced $1.51 million, or 62.15%,
    compared with the fourth quarter of 2011 and $690 thousand, or 42.80%,
    compared with the first quarter of 2011.
  *Net charge-offs decreased $1.31 million, or 49.70%, compared with the
    fourth quarter of 2011 and $285 thousand, or 17.68%, compared with the
    first quarter of 2011.
  *Tangible book value per common share increased $0.19, or 1.66%, to $11.64
    compared with the fourth quarter of 2011.
  *The Company's efficiency ratio of 57.18% for the first quarter of 2012
    shows significant improvement when compared with the efficiency ratio
    reported for the first quarter of 2011 of 63.43%.

Net Interest Income

Net interest income decreased $298 thousand, or 1.63%, to $17.98 million for
the first quarter of 2012 compared with the first quarter of 2011. The tax
equivalent net interest margin decreased 5 basis points to 3.91% for the first
quarter of 2012 compared with 3.96% for the first quarter of 2011. Total
interest income decreased $1.91 million, or 7.76%, to $22.68 million for the
first quarter of 2012 compared with the first quarter of 2011. The decrease
reflects continued loan and investment repricing effectively reducing the
average yields. The tax equivalent yield on loans decreased to 5.60% while the
average loan balance increased $11.72 million to $1.39 billion for the first
quarter of 2012 compared with the first quarter of 2011.

Total interest expense decreased $1.61 million, or 25.49%, to $4.71 million
for the first quarter of 2012 compared with the first quarter of 2011. Deposit
costs decreased $1.48 million, or 38.02%, to $2.41 million for the first
quarter of 2012 compared with the first quarter of 2011, which was primarily
due to a 37 basis point decrease in the average rate paid on interest-bearing
deposits. Borrowing costs decreased $135 thousand, or 5.54%, to $2.30 million
for the first quarter of 2012 compared with the first quarter of 2011, which
was primarily due to a $26.85 million decrease in the average borrowings
balance due to the redemption of repurchase agreements and declining
commercial cash management balances. The average rate paid on interest-bearing
liabilities decreased 30 basis points to 1.18% for the first quarter of 2012
compared with the first quarter of 2011. The average balance of
interest-bearing liabilities decreased $132.79 million, or 7.65%, to $1.60
billion for the first quarter of 2012 compared with the first quarter of 2011,
which included a $105.94 million decrease in average interest-bearing
deposits.

Provision for Loan Losses

The provision for loan losses decreased $690 thousand, or 42.80%, to $922
thousand for the first quarter of 2012, which compares favorably with $1.61
million recorded for the first quarter of 2011. The quarter ended March 31,
2012, marks the sixth consecutive quarter of provision decreases when compared
to the prior year's comparable quarter.

Noninterest Income

Noninterest income decreased $1.51 million, or 15.88%, to $7.99 million for
the first quarter of 2012 compared with the first quarter of 2011, which was
largely due to a reduction in the realized net gain on sale of securities. The
Company realized a $51 thousand net gain on sale of securities for the first
quarter of 2012, which was $1.79 million, or 97.22%, less than the net gain
reported for first quarter of 2011. Wealth management revenues remained
constant for the first quarters of 2012 and 2011 at $894 thousand. The Trust
and Wealth Management Divisions reported $897 million in assets under
management as of March 31, 2012. Service charges on deposit accounts remained
stable, decreasing only $18 thousand for the first quarter of 2012 compared
with the first quarter of 2011. Insurance commissions decreased $367 thousand,
or 18.89%, to $1.58 million for the first quarter of 2012 compared with the
same quarter of 2011, which is reflective of agency offices sold as part of
strategic realignment during the third quarter of 2011.

Noninterest Expense

Noninterest expense decreased $1.87 million, or 10.35%, to $16.19 million for
the first quarter of 2012 compared with the first quarter of 2011. Salaries
and employee benefits decreased $907 thousand, or 9.94%, to $8.22 million for
the first quarter of 2012 compared with the first quarter of 2011. Occupancy,
furniture, and equipment expense decreased $225 thousand, or 8.78%, to $2.34
million for the first quarter of 2012 compared with the first quarter of 2011.
Federal Deposit Insurance Corporation ("FDIC") premiums and assessments
decreased $556 thousand, or 63.3%, to $322 thousand for the first quarter of
2012 compared with the first quarter of 2011, which was primarily due to the
FDIC's change in assessment methodology for deposit insurance. Other operating
expense increased $315 thousand, or 6.61%, to $5.08 million for the first
quarter of 2012 compared with the first quarter of 2011. During the first
quarter of 2012, the Company incurred merger related expenses of $163 thousand
in connection with the acquisition of Peoples Bank of Virginia, which is
expected to close during the third quarter of 2012. Other operating expense
included losses on sales and expenses associated with other real estate owned
("OREO") of $821 thousand for the first quarter of 2012 compared to $256
thousand for the first quarter of 2011. The efficiency ratio for the first
quarter of 2012 of 57.18% shows significant improvement when compared with
63.43% for the first quarter of 2011.

Allowance for Loan Losses and Credit Quality

The allowance for loan losses decreased to $25.80 million at March 31, 2012,
compared with $26.21 million at December 31, 2011, and $26.48 million at March
31, 2011. The allowance for loan losses as a percentage of loans decreased to
1.86% at March 31, 2012, compared with 1.88% at December 31, 2011, and 1.93%
at March 31, 2011. As of March 31, 2012, net charge-offs decreased $1.31
million, or 49.70%, compared with the fourth quarter of 2011, and $285
thousand, or 17.68%, compared with the first quarter of 2011. Annualized net
charge-offs as a percentage of average loans were 0.38% for the first quarter
of 2012, which represents a decrease of 8 basis points compared with the first
quarter of 2011 continuing a general downward trend in net charge-off
activity.

As of March 31, 2012, the Company's loan quality measures continued to compare
favorably to the industry. Delinquent loans, which consist of loans 30 days or
more past due and loans on nonaccrual status, as a percentage of total loans
were 2.69% at March 31, 2012. At quarter end, the Company's nonperforming
loans as a percentage of total loans were 1.97% and nonperforming assets as a
percentage of total assets were 1.41%. Nonperforming assets included $2.67
million in unseasoned loan restructurings at March 31, 2012.

Balance Sheet and Capital

Consolidated assets totaled $2.20 billion as of March 31, 2012, an increase of
$37.42 million, or 1.73%, compared with $2.16 billion at December 31, 2011.
Consolidated liabilities totaled $1.89 billion as of March 31, 2012, an
increase of $33.08 million, or 1.78%, compared with $1.86 billion at December
31, 2011. Total stockholders' equity increased to $310.12 million as of March
31, 2012, compared with $306.79 million at December 31, 2011. Book value per
as-converted common share increased to $16.19 for the quarter ended March 31,
2012, compared with $16.02 for the quarter ended December 31, 2011. During the
first quarter of 2012, the Company paid a $0.10 per share cash dividend on
common shares.

The Company significantly exceeds regulatory "well capitalized" targets as of
March 31, 2012, with a total risk-based capital ratio of 18.72%, Tier 1
risk-based capital ratio of 17.46%, and a Tier 1 leverage ratio of 11.63%.

Pending Acquisition of Peoples Bank of Virginia

On March 1, 2012, the Company announced the signing of a definitive agreement
to acquire Peoples Bank of Virginia, a state-chartered commercial bank
headquartered in Richmond, Virginia. Peoples Bank of Virginia was established
in 2002, operates four branches in the Richmond, Virginia area, and as of
December 31, 2011, had $286 million in assets, $181 million in loans, $246
million in deposits, and $39 million in common equity. The combined company
will become the 10^th largest Virginia-based bank in the Richmond metropolitan
statistics area.

The Company will host an investor and media teleconference and webcast on
Monday, April 23, 2012, at 11:00 a.m. To access the teleconference, the
toll-free number is (877) 407-8033. 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 Investor Relations section. The
Company's press release and financial summary will be available in this
section, as well. Copies of the Company's first quarter 2012 earnings press
release and financial summary will be made available upon request via fax,
email, or postal service mail. To request a copy, contact David D. Brown,
Chief Financial Officer, at (276) 326-9000.

Non-GAAP Presentations

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 considered with
GAAP financial measures, regarding our operational performance. Analysis of
non-GAAP financial measures should be used in conjunction with results
presented in accordance with GAAP.

Core earnings are a non-GAAP financial measure that excludes certain items
from net income. Excluded items include gains, losses, and impairment losses
on securities; goodwill impairment; losses on other real estate owned;
amortization of intangibles; taxes; and other nonrecurring income and expense
items. Management believes that core earnings provide the Company and
investors a valuable tool to evaluate the Company's financial results.

The efficiency ratio is a non-GAAP financial measure that is computed by
dividing core noninterest expense by the sum of tax equivalent net interest
income and core noninterest income. The Management believes this measure
provides investors with important information about the Company's operating
expense control and efficiency of operations. Management also believes this
ratio focuses attention on 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.

Tangible book value per share is a non-GAAP financial measure that is defined
as stockholders' equity less goodwill and other intangible assets, divided by
as-converted common shares outstanding. Average tangible common equity is a
non-GAAP financial measure that is defined as average stockholder's equity
less average goodwill, other intangible assets, and the preferred liquidation
preference.

About First Community Bancshares, Inc.

First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a
$2.20 billion financial holding company and the parent company of First
Community Bank. First Community Bank operates fifty-four banking locations
throughout Virginia, West Virginia, North Carolina, and Tennessee. First
Community Bank offers wealth management and investment services through its
Trust and Financial Services Division and First Community Wealth Management, a
registered investment advisory firm. The Trust Division and First Community
Wealth Management managed assets with a market value of $897 million as of
March 31, 2012. The Company is also the parent company of Greenpoint Insurance
Group, Inc., a full-service insurance agency headquartered in High Point,
North Carolina, that operates six insurance offices throughout Virginia, West
Virginia, and North Carolina. The Company's common stock is traded on the
NASDAQ Global Select Market under the symbol, "FCBC". Additional investor
information can be found on the Company's website at www.fcbinc.com.

The First Community Bancshares, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6960

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 to reflect circumstances or events that
occur after the date the forward-looking statements are made.

FIRST COMMUNITY BANCSHARES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
                                                                 
                                                      Three Months Ended
                                                      March 31,
(Amounts in thousands, except share and per share      2012        2011
data)
Interest income                                                   
Interest and fees on loans held for investment         $19,368   $20,455
Interest on securities --- taxable                     2,079      2,533
Interest on securities --- nontaxable                  1,196      1,533
Interest on deposits in banks                          39         69
Total interest income                                  22,682     24,590
Interest expense                                                  
Interest on deposits                                   2,405      3,880
Interest on short-term borrowings                      595        640
Interest on long-term borrowings                       1,705      1,795
Total interest expense                                 4,705      6,315
Net interest income                                    17,977     18,275
Provision for loan losses                              922        1,612
Net interest income after provision for loan losses    17,055     16,663
Noninterest income                                                
Wealth management income                               894        894
Service charges on deposit accounts                    3,013      3,031
Other service charges and fees                         1,585      1,406
Insurance commissions                                  1,576      1,943
Net impairment losses recognized in earnings           --         (527)
Net gain on sale of securities                         51         1,836
Other operating income                                 872        916
Total noninterest income                              7,991      9,499
Noninterest expense                                               
Salaries and employee benefits                         8,222      9,129
Occupancy expense of bank premises                     1,526      1,647
Furniture and equipment                               811        915
Amortization of intangible assets                      233        259
FDIC premiums and assessments                          322        878
FHLB debt prepayment fees                              --         471
Merger related expense                                 163        --
Other operating expense                                4,916      4,764
Total noninterest expense                              16,193     18,063
Income before income taxes                             8,853      8,099
Income tax expense                                     2,852      2,348
Net income                                            6,001      5,751
Dividends on preferred stock                           283        --
Net income available to common shareholders            $5,718    $5,751
                                                                 
Basic earnings per common share                       $0.32     $0.32
Diluted earnings per common share                     $0.31     $0.32
Cash dividends per common share                        $0.10     $0.10
                                                                 
Weighted average basic shares outstanding              17,849,376 17,867,953
Weighted average diluted shares outstanding            19,189,923 17,887,118
                                                                 
Return on average assets                               1.06%       1.05%
Return on average common equity                        7.88%       8.47%


FIRST COMMUNITY BANCSHARES, INC.
CONDENSED QUARTERLY STATEMENTS OF INCOME (Unaudited)
                                                              
                 As of and for the Quarter Ended
                 March 31,   December 31, September   June 30,    March 31,
                                           30,
(Amounts in
thousands, except 2012        2011         2011        2011        2011
share and per
share data)
Interest Income                                                
Interest and fees
on loans held for $19,368   $19,947    $20,084   $20,094   $20,455
investment
Interest on
securities --     2,079      2,023       1,711      1,850      2,533
taxable
Interest on
securities --     1,196      1,190       1,180      1,291      1,533
nontaxable
Interest on       39         41          75         100        69
deposits in banks
Total interest    22,682     23,201      23,050     23,335     24,590
income
Interest Expense                                               
Interest on       2,405      2,637       2,998      3,273      3,880
deposits
Interest on
short-term        595        592         611        621        651
borrowings
Interest on
long-term         1,705      1,706       1,707      1,687      1,784
borrowings
Total interest    4,705      4,935       5,316      5,581      6,315
expense
Net interest      17,977     18,266      17,734     17,754     18,275
income
Provision for     922        2,436       1,920      3,079      1,612
loan losses
Net interest
income after      17,055     15,830      15,814     14,675     16,663
provision for
loan losses
Noninterest                                                    
Income
Wealth management 894        818         868        930        894
income
Service charges
on deposit        3,013      3,450       3,404      3,353      3,031
accounts
Other service     1,585      1,429       1,426      1,461      1,406
charges and fees
Insurance         1,576      1,170       1,523      1,561      1,943
commissions
Net impairment
losses recognized --         (1,548)     (210)      --        (527)
in earnings
Net gain on sale  51         26          178        3,224      1,836
of securities
Other operating   872        1,261       877        834        916
income
Total noninterest 7,991      6,606       8,066      11,363     9,499
income
Noninterest                                                    
Expense
Salaries and      8,222      7,903       8,409      8,685      9,129
employee benefits
Occupancy expense 1,526      1,589       1,476      1,568      1,647
of bank premises
Furniture and     811        804         862        909        915
equipment
Amortization of   233        250         250        261        259
intangible assets
FDIC premiums and 322        344         348        414        878
assessments
FHLB debt         --         --         --        --        471
prepayment fees
Merger related    163        --         --        --        --
expense
Goodwill          --         1,239       --        --        --
impairment
Other operating   4,916      4,925       4,715      5,901      4,764
expense
Total noninterest 16,193     17,054      16,060     17,738     18,063
expense
Income before     8,853      5,382       7,820      8,300      8,099
income taxes
Income tax        2,852      1,087       2,502      2,572      2,348
expense
Net income       6,001      4,295       5,318      5,728      5,751
Dividends on      283        286         286        131        --
preferred stock
Net income
available to      $5,718    $4,009     $5,032    $5,597    $5,751
common
shareholders
                                                              
Basic earnings    $0.32     $0.22      $0.28     $0.31     $0.32
per common share
Diluted earnings  $0.31     $0.22      $0.28     $0.31     $0.32
per common share
Cash dividends    $0.10     $0.10      $0.10     $0.10     $0.10
per common share
                                                              
Weighted average
basic shares      17,849,376 17,849,286  17,896,534 17,895,904 17,867,953
outstanding
Weighted average
diluted shares    19,189,923 19,159,090  19,205,634 18,534,489 17,887,118
outstanding


FIRST COMMUNITY BANCSHARES, INC.
RECONCILIATION OF GAAP NET INCOME TO CORE EARNINGS (Unaudited)
                                                      
                                             Three Months Ended
                                             March 31,
                                             2012      2011
(Amounts in thousands, except per share data)          
Net income, GAAP                              $6,001  $5,751
Non-GAAP adjustments:                                  
Net impairment losses recognized in earnings  --       527
Net gain on sale of securities                (51)     (1,836)
Amortization of intangible assets             233      259
FHLB debt prepayment fees                     --       471
Merger related expense                        163      --
Total adjustments to core earnings            345      (579)
Tax effect                                   130      (217)
Core earnings, non-GAAP                       $6,216  $5,389
                                                      
Core return on average assets                 1.15%     0.98%
Core return on average common equity          8.57%     7.94%
Core return on average tangible common equity 12.22%    11.73%
Core diluted earnings per common share        $0.32     $0.30


FIRST COMMUNITY BANCSHARES, INC.
EFFICIENCY RATIO CALCULATION (Unaudited)
                                                     
                                            Three Months Ended
                                            March 31,
                                            2012      2011
(Amounts in thousands)                                
Noninterest expense, GAAP                    $16,193 $18,063
Non-GAAP adjustments:                                 
FHLB debt prepayment fees                    --       (471)
Merger related expenses                      (163)    --
OREO expense and net loss                    (821)    (256)
Adjusted noninterest expense                 15,209   17,336
                                                     
Net interest income, GAAP                    17,977   18,275
Noninterest income, GAAP                     7,991    9,499
Non-GAAP adjustments:                                 
Tax equivalency adjustment                   683      866
Net impairment losses recognized in earnings --       527
Net gain on sale of securities               (51)     (1,836)
Adjusted net interest and noninterest income 26,600   27,331
                                                     
Efficiency Ratio                             57.18%    63.43%


FIRST COMMUNITY BANCSHARES, INC.
CONDENSED QUARTERLY BALANCE SHEETS (Unaudited)
                                                                
                    For the Quarter Ended
                    March 31,   December    September   June 30,    March 31,
                                 31,         30,
                    2012        2011        2011        2011        2011
(Amounts in                                                      
thousands)
Cash and due from    $36,555   $34,578   $38,776   $31,451   $52,684
banks
Federal funds sold   61,328     1,909      103,179    162,629    121,974
Interest-bearing     11,729     10,807     6,365      36,539     809
deposits in banks
Total cash and cash  109,612    47,294     148,320    230,619    175,467
equivalents
Securities           478,352    482,430    449,387    349,976    430,965
available-for-sale
Securities           2,874      3,490      3,342      4,106      4,524
held-to-maturity
Loans held for sale  3,522      5,820      3,575      920        2,614
Loans held for
investment, net of   1,386,525  1,396,067  1,374,656  1,373,944  1,375,685
unearned income
Less allowance for   25,800     26,205     26,407     26,482     26,482
loan losses
Loans, net           1,364,247  1,375,682  1,351,824  1,348,382  1,351,817
Property, plant, and 54,616     54,721     54,860     55,808     56,189
equipment, net
Other real estate    3,829      5,914      5,942      5,585      5,644
owned
Interest receivable  5,886      6,193      6,264      6,202      7,288
Goodwill             83,056     83,056     83,832     85,132     84,930
Intangible assets    4,093      4,326      4,576      5,205      5,466
Other assets         96,704     102,747    111,745    115,385    118,690
Total assets         $2,203,269 $2,165,853 $2,220,092 $2,206,400 $2,240,980
                                                                
Deposits:                                                        
Noninterest-bearing $253,352  $240,268  $233,683  $219,488  $222,072
Interest-bearing    307,136    275,156    295,804    271,622    287,006
Savings              397,850    394,707    396,767    405,409    420,481
Time                 621,412    633,336    664,237    683,157    707,458
Total deposits       1,579,750  1,543,467  1,590,491  1,579,676  1,637,017
Interest, taxes, and 23,203     20,452     20,030     20,563     20,459
other liabilities
Securities sold
under agreements to  124,266    129,208    139,510    137,778    139,472
repurchase
FHLB advances        150,000    150,000    150,000    150,000    150,000
Other borrowings     15,925     15,933     15,941     16,179     16,186
Total liabilities    1,893,144  1,859,060  1,915,972  1,904,196  1,963,134
                                                                
Preferred stock      18,921     18,921     18,921     18,921     --
Common stock         18,083     18,083     18,083     18,083     18,083
Additional paid-in   188,149    188,118    188,243    188,278    188,742
capital
Retained earnings    97,588     94,720     92,498     89,257     85,450
Treasury stock, at   (5,721)    (5,721)    (5,651)    (5,137)    (5,851)
cost
Accumulated other    (6,895)    (7,328)    (7,974)    (7,198)    (8,578)
comprehensive loss
Total stockholders'  310,125    306,793    304,120    302,204    277,846
equity
Total liabilities
and stockholders'    $2,203,269 $2,165,853 $2,220,092 $2,206,400 $2,240,980
equity
                                                                
Shares outstanding   17,849,376 17,849,376 17,869,514 17,917,824 17,894,899
at period end
Book value per
common share at      $16.19    $16.02    $15.86    $16.87    $15.53
period end ^(1)
Tangible book value
per common share at  $11.64    $11.45    $11.25    $11.82    $10.48
period end ^(2)
                                                                
(1) Book value per common share is defined as stockholders' equity divided by
as-converted common shares outstanding.
(2) Tangible book value per common share is defined as stockholders' equity less
goodwill and other intangibles divided by as-converted common shares
outstanding.


FIRST COMMUNITY BANCSHARES, INC.
SELECTED CREDIT QUALITY INFORMATION (Unaudited)
                                                      
                As of and for the Quarter Ended
                March 31,  December   September June 30,  March 31,
                            31,        30,
(Amounts in      2012       2011       2011      2011      2011
thousands)
Allowance for                                          
loan losses
Beginning        $26,205  $26,407  $26,482 $26,482 $26,482
balance
Provision for    922       2,436     1,920    3,079    1,612
loan losses
Charge-offs      (1,562)   (2,915)   (3,062)  (3,456)  (2,027)
Recoveries       235       277       1,067    377      415
Net charge-offs  (1,327)   (2,638)   (1,995)  (3,079)  (1,612)
Ending balance   $25,800  $26,205  $26,407 $26,482 $26,482
                                                      
Summary of Asset                                       
Quality
Nonaccrual       $24,617  $24,487  $22,877 $22,037 $17,703
loans
Loans 90 days or
more past due
and still        --        --        --       --       --
accruing
interest
Restructured     2,668     600       964      878      1,509
loans ^(1)
Total
nonperforming    27,285    25,087    23,841   22,915   24,739
loans
                                                      
Other real       3,829     5,914     5,942    5,585    5,644
estate owned
Total
nonperforming    $31,114  $31,001  $29,783 $28,500 $29,649
assets
                                                      
Restructured
loans performing $721     $827     $1,156  $7,044  $7,519
in accordance
with terms ^ (2)
Total
restructured     9,720     9,454     12,198   12,170   12,598
loans ^ (3)
                                                      
Asset Quality                                          
Ratios
Nonperforming
loans to total   1.97%      1.80%      1.73%     1.67%     1.80%
loans
Nonperforming
assets to total  1.41%      1.43%      1.34%     1.29%     1.32%
assets
Allowance for
loan losses to   94.56%     104.46%    110.76%   115.57%   107.05%
nonperforming
loans
Allowance for
loan losses to   1.86%      1.88%      1.92%     1.93%     1.93%
total loans
Annualized net
charge-offs to   0.38%      0.75%      0.57%     0.89%     0.46%
average loans
                                                      
(1) Unseasoned restructured loans include loans modified within the      
last six months, excluding those on nonaccrual status.
(2) Performing restructured loans include loans modified in the last     
six to twelve months, excluding those on nonaccrual status.
(3) Total restructured loans include all modified loans, excluding       
those on nonaccrual status.
                

FIRST COMMUNITY BANCSHARES, INC.
NONACCRUAL LOAN DETAIL (Unaudited)
                                                       
                                As of March 31, 2012
                                Loans                   Nonaccrual
                                Held for     Nonaccrual Loans to Loans
(Amounts in thousands)           Investment   Loans       Outstanding
Commercial loans                                        
Construction --- commercial      $19,593    $57       0.29%
Land development                 2,571       49         1.91%
Other land loans                 23,572      258        1.09%
Commercial and industrial        80,637      1,866      2.31%
Multi-family residential         78,815      480        0.61%
Single family non-owner occupied 108,247     1,988      1.84%
Non-farm, non-residential        356,029     10,360     2.91%
Agricultural                     1,607       --         0.00%
Farmland                         37,751      103        0.27%
Total commercial                708,822     15,161     2.14%
                                                       
Consumer real estate loans                               
Home equity lines                109,751     448        0.41%
Single family owner occupied     479,411     8,938      1.86%
Owner occupied construction      17,995      30         0.17%
Total consumer real estate       607,157     9,416      1.55%
                                                       
Consumer and other loans                                 
Consumer                        65,036      40         0.06%
Other                           5,510       --         0.00%
Total consumer and other         70,546      40         0.06%
                                                       
Total loans                     $1,386,525 $24,617   1.78%
                                                       


FIRST COMMUNITY BANCSHARES, INC.
SELECTED FINANCIAL INFORMATION (Unaudited)
                                                                
                As of and for the Quarter Ended
                March 31,    December 31, September    June 30,     March 31,
                                           30,
                2012         2011         2011         2011         2011
Selected Ratios                                                  
Return on        1.06%        0.73%        0.91%        1.02%        1.05%
average assets
Return on
average common   7.88%        5.53%        6.94%        7.91%        8.47%
equity
Net interest     3.91%        3.93%        3.77%        3.83%        3.96%
margin
Efficiency ratio 57.18%       56.73%       57.97%       60.07%       63.43%
for the quarter
Efficiency ratio 57.18%       59.56%       60.52%       61.77%       63.43%
year-to-date
Total equity to  14.08%       14.16%       13.70%       13.70%       12.40%
total assets
Average earning
assets to        88.24%       88.27%       88.39%       88.11%       88.07%
average assets
Average loans to 89.85%       89.45%       87.15%       85.57%       84.78%
average deposits
                                                                
(Amounts in                                                      
thousands)
Average Balances                                                 
Loans           $1,394,246 $1,392,650 $1,379,144 $1,373,988 $1,382,526
Investment       481,595     479,638     417,291     386,706     470,833
securities
Earning assets   1,918,366   1,913,768   1,936,720   1,935,470   1,961,538
Total assets     2,174,004   2,168,166   2,191,145   2,196,691   2,227,255
Total deposits   1,551,728   1,556,990   1,582,481   1,605,694   1,630,701
Interest-bearing 1,312,865   1,320,186   1,357,938   1,386,292   1,418,807
deposits
Borrowings       290,015     295,303     300,751     297,857     316,864
Interest-bearing 1,602,880   1,615,489   1,658,689   1,684,149   1,735,671
liabilities
Stockholders'    310,795     306,779     306,524     291,474     275,350
equity
Tax equivalent
net interest     18,660      18,947      18,410      18,490      19,141
income


FIRST COMMUNITY BANCSHARES, INC.
AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
                                                                    
                   Three Months Ended March 31,
                   2012                           2011
                   Average              Average Average              Average
                                           Yield/                         Yield/
(Amounts in         Balance      Interest  Rate    Balance      Interest  Rate
thousands)                       ^(1)      ^(1)                 ^(1)      ^(1)
Assets                                                               
Earning assets                                                       
Loans ^(2)          $1,394,246 $19,407 5.60%   $1,382,526 $20,496 6.01%
Securities          478,358     3,857    3.24%   466,288     4,796    4.17%
available-for-sale
Securities          3,237       62       7.70%   4,545       95       8.48%
held-to-maturity
Interest-bearing    42,525      39       0.37%   108,179     69       0.26%
deposits
Total earning       1,918,366   23,365   4.90%   1,961,538   25,456   5.26%
assets
Other assets       255,638                     265,717              
Total assets        $2,174,004                 $2,227,255          
                                                                    
Liabilities                                                          
Interest-bearing                                                     
deposits
Demand deposits    $282,887   $31     0.04%   $271,604   $211    0.32%
Savings deposits   395,588     110      0.11%   427,727     356      0.34%
Time deposits       634,390     2,264    1.44%   719,476     3,313    1.87%
Total
interest-bearing    1,312,865   2,405    0.74%   1,418,807   3,880    1.11%
deposits
Borrowings                                                           
Federal funds       1,970       2        0.41%   --          --       0.00%
purchased
Retail repurchase   72,171      115      0.64%   88,684      173      0.79%
agreements
Wholesale
repurchase          50,000      468      3.76%   50,000      467      3.79%
agreements
FHLB advances and   165,874     1,715    4.16%   178,180     1,795    4.09%
other borrowings
Total borrowings    290,015     2,300    3.19%   316,864     2,435    3.12%
Total
interest-bearing    1,602,880   4,705    1.18%   1,735,671   6,315    1.48%
liabilities
Noninterest-bearing 238,863                     211,894              
demand deposits
Other liabilities   21,466                      4,340                
Total liabilities   1,863,209                   1,951,905            
Stockholders'       310,795                     275,350              
equity
Total liabilities
and stockholders'   $2,174,004                 $2,227,255          
equity
Net interest
income, tax                     $18,660                    $19,141 
equivalent
Net interest rate                        3.72%                        3.78%
spread ^(3)
Net interest margin                      3.91%                        3.96%
^(4)
                                                                    
(1) Fully taxable equivalent at the rate of 35% ("FTE"). The FTE basis adjusts
for the tax benefits of income on certain tax exempt loans and investments using
the federal statutory rate of 35% for each period presented. The Company believes
this measure to be the preferred industry measurement of net interest income and
provides relevant comparison between taxable and nontaxable amounts.
(2) Nonaccrual loans are included in average balances outstanding, but with no
related interest income during the period of nonaccrual.
(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.

CONTACT: David D. Brown
         (276) 326-9000

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