First Community Bancshares, Inc. Announces Fourth Quarter and Full Year 2012 Results and Quarterly Cash Dividend to Common

First Community Bancshares, Inc. Announces Fourth Quarter and Full Year 2012
Results and Quarterly Cash Dividend to Common Stockholders

BLUEFIELD, Va., Feb. 1, 2013 (GLOBE NEWSWIRE) -- First Community Bancshares,
Inc. (Nasdaq:FCBC) (www.fcbinc.com) (the "Company") today reported net income
for the quarter and twelve months ended December 31, 2012, of $8.44 million
and $28.58 million, respectively. Net income available to common shareholders
totaled $8.17 million, or $0.39 per diluted common share, for the quarter
ended December 31, 2012. Net income available to common shareholders totaled
$27.52 million, or $1.40 per diluted common share, for the twelve months ended
December 31, 2012. Net income for the quarter and twelve months ended December
31, 2012, was impacted by $857 thousand and $5.08 million, respectively, in
merger related expenses. Excluding nonrecurring income and expense items, core
earnings for the quarter and twelve months ended December 31, 2012, totaled
$8.78 million and $30.47 million, respectively.

On January 22, 2013, the Company announced that the board of directors
declared a quarterly cash dividend to common shareholders of twelve cents
($0.12) per common share. The quarterly dividend is payable to common
shareholders of record on February 8, 2013, and is expected to be paid on or
about February 22, 2013. The current dividend represents an increase of 20%
over the dividend paid during the same quarter of 2012. The current year marks
the 28^th consecutive year of cash dividends to shareholders.

Fourth Quarter 2012 Highlights –

  *Core earnings were $8.78 million for the fourth quarter of 2012, an
    increase of $3.82 million, or 77.04%, compared with the fourth quarter of
    2011.
  *Core return on average assets was 1.28% and core return on average
    tangible common equity was 15.10% for the fourth quarter of 2012.
  *Core return on average assets was 1.21% and core return on average
    tangible common equity was 13.95% for the year ended December 31, 2012.
  *Loans held for investment increased $328.38 million, or 23.52%, compared
    with the fourth quarter of 2012.
  *The tax equivalent net interest margin increased 56 basis points to 4.49%
    for the fourth quarter of 2012 compared with the fourth quarter of 2011.
  *Net interest income was $26.14 million, an increase of $7.87 million, or
    43.09%, compared with fourth quarter 2011.
  *Cash dividends paid per common share increased 7.5% for the year ended
    December 31, 2012, compared with the year ended December 31, 2011.

Net Interest Income

Net interest income increased $7.87 million, or 43.09%, to $26.14 million for
the fourth quarter of 2012 compared with the fourth quarter of 2011. The tax
equivalent net interest margin increased 56 basis points to 4.49% for the
fourth quarter of 2012 compared with 3.93% for the fourth quarter of 2011.
Total interest income increased $8.06 million, or 34.72%, to $31.26 million
for the fourth quarter of 2012 compared with the fourth quarter of 2011. The
increase reflects the increases in loan portfolio balances from the
acquisitions of Peoples Bank of Virginia ("Peoples") and Waccamaw Bank
("Waccamaw") during the second quarter of 2012. The tax equivalent yield on
loans increased to 6.43% while the average loan balance increased $352.93
million, or 25.34%, to $1.75 billion for the fourth quarter of 2012 compared
with the fourth quarter of 2011.

Total interest expense increased $185 thousand, or 3.75%, to $5.12 million for
the fourth quarter of 2012 compared with the fourth quarter of 2011. Deposit
costs decreased $33 thousand, or 1.25%, to $2.60 million for the fourth
quarter of 2012 compared with the fourth quarter of 2011, which was primarily
due to an 18 basis point decrease in the average rate paid on interest-bearing
deposits. Borrowing costs increased $218 thousand, or 9.49%, to $2.52 million
for the fourth quarter of 2012 compared with the fourth quarter of 2011. The
average rate paid on interest-bearing liabilities decreased 20 basis points to
1.01% for the fourth quarter of 2012 compared with the fourth quarter of 2011.
The average balance of interest-bearing liabilities increased $399.15 million,
or 24.71%, to $2.01 billion for the fourth quarter of 2012 compared with the
fourth quarter of 2011, which included a $379.81 million increase in average
interest-bearing deposits and a $19.34 million increase in average total
borrowings. The increases were primarily the result of the Peoples and
Waccamaw acquisitions that occurred during the second quarter of 2012.

Provision for Loan Losses

The provision for loan losses for the fourth quarter of 2012 decreased $1.22
million, or 49.92%, to $1.22 million, compared with the same period of the
prior year. Provision for the twelve months of 2012 decreased $3.37 million,
or 37.24%, to $5.68 million, compared with the same period of the prior year.
The fourth quarter of 2012 marks the ninth consecutive quarter of provision
decreases when compared to the prior year's comparable quarter.

Noninterest Income

Noninterest income increased $1.64 million, or 24.84%, to $8.25 million for
the fourth quarter of 2012 compared with the fourth quarter of 2011. The
Company realized a $316 thousand net gain on sale of securities for the fourth
quarter of 2012, which was an increase of $290 thousand, or 11.15%, compared
to the fourth quarter of 2011. Wealth management revenues increased $44
thousand, or 5.38%, for the fourth quarter of 2012 compared with the fourth
quarter of 2011. The Trust and Wealth Management Divisions reported $876
million in assets under management as of December 31, 2012. Service charges on
deposit accounts increased $376 thousand, or 10.90%, for the fourth quarter of
2012 compared with the fourth quarter of 2011, which are attributable to the
addition of Waccamaw. Insurance commissions increased $45 thousand, or 3.85%,
to $1.22 million for the fourth quarter of 2012 compared with the same quarter
of 2011. The Company incurred no other-than-temporary impairment charges for
the fourth quarter of 2012 compared to $1.55 million recorded for the fourth
quarter of 2011.

Noninterest Expense

Noninterest expense increased $3.71 million, or 21.77%, to $20.77 million for
the fourth quarter of 2012 compared with the fourth quarter of 2011, due
largely to the Peoples and Waccamaw acquisitions. Salaries and employee
benefits increased $2.79 million, or 35.30%, to $10.69 million for the fourth
quarter of 2012 compared with the fourth quarter of 2011. The Peoples and
Waccamaw acquisitions accounted for an increase in salaries and employee
benefits of $665 thousand and $1.22 million, respectively, during the fourth
quarter of 2012. Occupancy, furniture, and equipment expense increased $949
thousand, or 39.66%, to $3.34 million for the fourth quarter of 2012 compared
with the fourth quarter of 2011. During the fourth quarter of 2012, the
Company incurred merger related expenses of $857 thousand in connection with
the acquisition of Peoples and Waccamaw. Other operating expense increased
$446 thousand, or 9.06%, to $5.37 million for the fourth quarter of 2012
compared with the fourth quarter of 2011. Other operating expense included a
net loss on sales and expenses associated with other real estate owned of $312
thousand for the fourth quarter of 2012 compared to $455 thousand for the
fourth quarter of 2011. The efficiency ratio for the fourth quarter of 2012
was 56.38% compared to 56.73% for the fourth quarter of 2011.

Allowance for Loan Losses and Credit Quality on Non-covered Loans

Non-covered loans and other real estate owned are those assets not covered by
the loss share agreement between the FDIC and the Bank in relation to the
acquisition of Waccamaw. The allowance for loan losses on non-covered loans
decreased to $25.77 million at December 31, 2012, compared with $26.21 million
at December 31, 2011. The allowance for loan losses for non-covered loans as a
percentage of non-covered loans decreased to 1.70% at December 31, 2012,
compared with 1.88% at December 31, 2011. The decrease in the ratio of
allowance for loan losses for non-covered loans as a percentage of non-covered
loans for the fourth quarter of 2012 was impacted by loans marked to fair
value as part of the Peoples' acquisition. For the fourth quarter of 2012, net
charge-offs decreased $1.35 million, or 51.29%, compared with the fourth
quarter of 2011. Annualized net charge-offs as a percentage of average
non-covered loans were 0.33% for the fourth quarter of 2012, which represents
a decrease compared with 0.76% for the fourth quarter of 2011.

Non-covered delinquent loans, comprised of loans 30 days or more past due and
nonaccrual loans, as a percentage of total non-covered loans measured 2.57% at
December 31, 2012, compared to 2.63% for the same period of the prior year.
Non-covered nonaccrual loans decreased to $23.93 million at December 31, 2012,
compared with $24.49 million at December 31, 2011. At quarter end, the
Company's non-covered nonperforming loans as a percentage of total non-covered
loans were 1.89% and non-covered nonperforming assets as a percentage of total
non-covered assets were 1.37%, down from 1.43% for the same period of the
prior year. Nonperforming assets included $4.73 million in unseasoned,
accruing troubled debt restructurings and $9.00 million in other real estate
owned, of which $3.26 million was covered under the loss share agreement, at
December 31, 2012.

Balance Sheet and Capital

Consolidated assets totaled $2.73 billion as of December 31, 2012, an increase
of $566.31 million, or 26.16%, compared with $2.16 billion at December 31,
2011. Consolidated liabilities totaled $2.37 billion as of December 31, 2012,
an increase of $515.56 million, or 27.73%, compared with $1.86 billion at
December 31, 2011. Total stockholders' equity increased to $356.47 million as
of December 31, 2012, compared with $305.73 million at December 31, 2011. Book
value per as-converted common share increased to $16.80 for the quarter ended
December 31, 2012, compared with $15.96 for the quarter ended December 31,
2011. Tangible book value per common share increased $0.19 to $11.59 compared
with the fourth quarter of 2011. During the fourth quarter of 2012, the
Company paid a cash dividend of $0.11 per common share.

The Company significantly exceeds regulatory "well capitalized" targets as of
December 31, 2012, with a total risk-based capital ratio of 16.6%, Tier 1
risk-based capital ratio of 15.4%, and a Tier 1 leverage ratio of 9.9%.

Non-GAAP Financial Measures

The Company prepares its financial statements in accordance with generally
accepted accounting principles in the United States ("GAAP"). This press
release also refers to certain non-GAAP financial measures that the Company
believes provide investors with important information, when used in
conjunction with results presented in accordance with GAAP, regarding our
operational performance.

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 and intangible impairment; 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 adjusted noninterest expense by the sum of tax equivalent net
interest income and adjusted noninterest income. 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 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.

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

Investor Relations

The Company will host an investor and media teleconference and webcast on
Friday, February 1, 2013, 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 fourth 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.

About First Community Bancshares, Inc.

First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a
$2.73 billion financial holding company and the parent company of First
Community Bank. First Community Bank operates seventy-two banking locations
throughout Virginia, West Virginia, North Carolina, South Carolina, and
Tennessee. First Community Bank offers wealth management and investment
services through its Trust 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 $876 million as of
December 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      Year Ended
                               December 31,            December 31,
(Amounts in thousands, except  2012        2011        2012        2011
share and per share data)
Interest income                                                 
Interest and fees on loans     $28,188   $19,947   $96,684   $80,580
held for investment
Interest on securities ---     1,770      2,023      7,830      8,117
taxable
Interest on securities ---     1,216      1,190      4,883      5,194
nontaxable
Interest on deposits in banks  82         41         259        285
Total interest income          31,256     23,201     109,656    94,176
Interest expense                                                
Interest on deposits           2,604      2,637      9,972      12,788
Interest on short-term         656        603        2,515      2,475
borrowings
Interest on long-term          1,860      1,695      7,113      6,884
borrowings
Total interest expense         5,120      4,935      19,600     22,147
Net interest income            26,136     18,266     90,056     72,029
Provision for loan losses      1,220      2,436      5,678      9,047
Net interest income after      24,916     15,830     84,378     62,982
provision for loan losses
Noninterest income                                              
Wealth management income       862        818        3,701      3,510
Service charges on deposit     3,826      3,450      14,063     13,238
accounts
Other service charges and fees 1,682      1,429      6,462      5,722
Insurance commissions          1,215      1,170      5,743      6,197
Net impairment losses          --         (1,548)    (942)      (2,285)
recognized in earnings
Net gain on sale of securities 316        26         586        5,264
Other operating income         346        1,261      6,131      3,888
Total noninterest income      8,247      6,606      35,744     35,534
Noninterest expense                                             
Salaries and employee benefits 10,693     7,903      38,667     34,126
Occupancy expense of bank      1,938      1,589      6,872      6,280
premises
Furniture and equipment       1,404      804        4,145      3,490
Amortization of intangible     191        250        804        1,020
assets
FDIC premiums and assessments  313        344        1,536      1,984
FHLB debt prepayment fees      --         --         --         471
Merger related expense         857        --         5,084      --
Goodwill impairment            --         1,239      --         1,239
Other operating expense        5,371      4,925      20,309     20,305
Total noninterest expense      20,767     17,054     77,417     68,915
Income before income taxes     12,396     5,382      42,705     29,601
Income tax expense             3,957      2,151      14,128     9,573
Net income                    8,439      3,231      28,577     20,028
Dividends on preferred stock   272        286        1,058      703
Net income available to common $8,167    $2,945    $27,519   $19,325
shareholders
                                                               
Basic earnings per common      $0.41     $0.16     $1.44     $1.08
share
Diluted earnings per common    $0.39     $0.17     $1.40     $1.07
share
Cash dividends per common      $0.11     $0.10     $0.43     $0.40
share
                                                               
Weighted average basic shares  20,058,998 17,849,286 19,125,839 17,877,421
outstanding
Weighted average diluted       21,373,669 19,159,090 20,480,172 18,691,081
shares outstanding
                                                               
Return on average assets       1.19%       0.54%       1.10%       0.88%
Return on average common       9.59%       4.06%       8.70%       6.81%
equity


FIRST COMMUNITY BANCSHARES, INC.
CONDENSED QUARTERLY STATEMENTS OF INCOME (Unaudited)
                                                             
                As of and for the Quarter Ended
(Amounts in                   September
thousands,       December 31, 30,         June 30,    March 31,   December 31,
except share and 2012         2012        2012        2012        2011
per share data)
Interest Income                                               
Interest and
fees on loans    $28,188    $28,275   $20,853   $19,368   $19,947
held for
investment
Interest on
securities ---   1,770       1,980      2,001      2,079      2,023
taxable
Interest on
securities ---   1,216       1,215      1,256      1,196      1,190
nontaxable
Interest on
deposits in      82          66         72         39         41
banks
Total interest   31,256      31,536     24,182     22,682     23,201
income
Interest Expense                                              
Interest on      2,604       2,603      2,360      2,405      2,637
deposits
Interest on
short-term       656         675        589        595        592
borrowings
Interest on
long-term        1,860       1,799      1,749      1,705      1,706
borrowings
Total interest   5,120       5,077      4,698      4,705      4,935
expense
Net interest     26,136      26,459     19,484     17,977     18,266
income
Provision for    1,220       1,916      1,620      922        2,436
loan losses
Net interest
income after     24,916      24,543     17,864     17,055     15,830
provision for
loan losses
Noninterest                                                   
Income
Wealth
management       862         1,005      940        894        818
income
Service charges
on deposit       3,826       3,895      3,329      3,013      3,450
accounts
Other service    1,682       1,631      1,564      1,585      1,429
charges and fees
Insurance        1,215       1,616      1,336      1,576      1,170
commissions
Net impairment
losses           --          (942)      --         --         (1,548)
recognized in
earnings
Net gain (loss)
on sale of       316         228        (9)        51         26
securities
Other operating  346         3,730      1,183      872        1,261
income
Total
noninterest      8,247       11,163     8,343      7,991      6,606
income
Noninterest                                                   
Expense
Salaries and
employee         10,693      10,860     8,892      8,222      7,903
benefits
Occupancy
expense of bank  1,938       1,754      1,654      1,526      1,589
premises
Furniture and    1,404       955        975        811        804
equipment
Amortization of
intangible       191         191        189        233        250
assets
FDIC premiums    313         611        290        322        344
and assessments
Merger related   857         645        3,419      163        --
expense
Goodwill         --          --         --         --         1,239
impairment
Other operating  5,371       5,309      4,713      4,916      4,925
expense
Total
noninterest      20,767      20,325     20,132     16,193     17,054
expense
Income before    12,396      15,381     6,075      8,853      5,382
income taxes
Income tax       3,958       5,322      1,997      2,852      2,151
expense
Net income      8,438       10,059     4,078      6,001      3,231
Dividends on     272         220        283        283        286
preferred stock
Net income
available to     $8,166     $9,839    $3,795    $5,718    $2,945
common
shareholders
                                                             
Basic earnings   $0.41      $0.49     $0.20     $0.32     $0.16
per common share
Diluted earnings $0.39      $0.47     $0.20     $0.31     $0.17
per common share
Cash dividends   $0.11      $0.11     $0.11     $0.10     $0.10
per common share
                                                             
Weighted average
basic shares     20,058,998  20,013,264 18,561,714 17,849,376 17,849,286
outstanding
Weighted average
diluted shares   21,373,669  21,476,497 19,909,242 19,189,923 19,159,090
outstanding


FIRST COMMUNITY BANCSHARES, INC.
RECONCILIATION OF GAAP NET INCOME TO CORE EARNINGS (Unaudited)
                                                                 
                                       Three Months Ended Year Ended
                                        December 31,       December 31,
                                       2012      2011     2012      2011
(Amounts in thousands, except per share                           
data)
Net income, GAAP                        $8,439  $3,231 $28,577 $20,028
Non-GAAP adjustments:                                             
Net impairment losses recognized in     --       1,548   942      2,285
earnings
Net gain on sale of securities          (316)    (26)    (586)    (5,264)
FHLB debt prepayment fees               --       --      --       471
Merger related expense                  857      --      5,084    --
Goodwill impairment                     --       1,239   --       1,239
Prospective correction of prior period  --       --      (2,395)  --
understatement
Other noncore, nonrecurring items       --       --      --       59
Total adjustments to core earnings      541      2,761   3,045    (1,210)
Tax effect                             204      1,035   1,151    (454)
Core earnings, non-GAAP                 $8,776  $4,957 $30,471 $19,272
                                                                 
Core return on average assets           1.28%     0.91%    1.21%     0.88%
Core return on average common equity    10.30%    6.83%    9.63%     6.79%
Core return on average tangible common  15.10%    9.85%    13.95%    9.92%
equity
Core diluted earnings per common share  $0.41     $0.26    $1.49     $1.03


FIRST COMMUNITY BANCSHARES, INC.
EFFICIENCY RATIO CALCULATION (Unaudited)
                                                                 
                                      Three Months Ended  Year Ended
                                       December 31,        December 31,
                                      2012      2011      2012      2011
(Amounts in thousands)                                            
Noninterest expense, GAAP              $20,767 $17,054 $77,417 $68,915
Non-GAAP adjustments:                                             
FHLB debt prepayment fees              --       --       --       (471)
Merger related expenses                (857)    --       (5,084)  --
Goodwill impairment                    --       (1,239)  --       (1,239)
OREO expense and net loss              (312)    (455)    (1,893)  (3,081)
Other noncore, nonreccuring items      --       --       --       (77)
Adjusted noninterest expense           19,598   15,360   70,440   64,047
                                                                 
Net interest income, GAAP              26,136   18,266   90,056   72,029
Noninterest income, GAAP               8,247    6,606    35,744   35,534
Non-GAAP adjustments:                                             
Tax equivalency adjustment             696      681      2,747    2,959
Net impairment losses recognized in    --       1,548    942      2,285
earnings
Net gain on sale of securities         (316)    (26)     (586)    (5,264)
Prospective correction of prior period --       --       (2,395)  --
understatement
Other noncore, nonreccuring items      --       --       --       (18)
Adjusted net interest and noninterest  34,763   27,075   126,508  107,525
income
                                                                 
Efficiency Ratio                       56.38%    56.73%    55.68%    59.56%


FIRST COMMUNITY BANCSHARES, INC.
CONDENSED QUARTERLY BALANCE SHEETS (Unaudited)
                                                                 
                    For the Quarter Ended
                     December 31, September   June 30,    March 31,   December
                    2012         30,         2012        2012        31,
                                  2012                                2011
(Amounts in                                                       
thousands)
Cash and due from    $50,405    $44,865   $54,494   $36,555   $34,578
banks
Federal funds sold   66,509      93,005     64,815     61,328     1,909
Interest-bearing     27,933      27,359     36,856     11,729     10,807
deposits in banks
Total cash and cash  144,847     165,229    156,165    109,612    47,294
equivalents
Securities           534,358     517,161    526,607    478,352    482,430
available-for-sale
Securities           816         816        1,295      2,874      3,490
held-to-maturity
Loans held for sale  6,672       4,446      1,179      3,522      5,820
Loans held for
investment, net of                                                
unearned income:
Covered under loss   207,869     221,977    238,777    --         --
share agreements
Not covered under
loss share           1,516,574   1,541,633  1,568,312  1,386,525  1,396,067
agreements
Less allowance for   25,770      25,835     26,171     25,800     26,205
loan losses
Loans, net           1,705,345   1,742,221  1,782,097  1,364,247  1,375,682
FDIC receivable
under loss share     48,073      49,477     52,067     --         --
agreements
Property, plant, and 64,868      62,191     60,829     54,616     54,721
equipment, net
Other real estate                                                 
owned:
Covered under loss   3,255       3,553      5,325      --         --
share agreements
Not covered under
loss share           5,749       5,957      4,938      3,829      5,914
agreements
Interest receivable  5,864       6,038      8,396      5,886      6,193
Goodwill             107,054     104,022    99,402     83,056     83,056
Intangible assets    3,522       3,713      3,903      4,093      4,326
Other assets         107,346     109,272    109,297    96,704     101,683
Total assets         $2,731,097 $2,769,650 $2,810,321 $2,203,269 $2,164,789
                                                                 
Deposits:                                                         
Noninterest-bearing $343,352   $335,100  $340,895  $253,352  $240,268
Interest-bearing    353,321     360,061    335,686    307,136    275,156
Savings              500,276     496,740    494,516    397,850    394,707
Time                 833,226     872,059    934,110    621,412    633,336
Total deposits       2,030,175   2,063,960  2,105,207  1,579,750  1,543,467
Interest, taxes, and 30,896      29,538     22,465     23,203     20,452
other liabilities
Securities sold
under agreements to  136,118     146,904    148,367    124,266    129,208
repurchase
FHLB advances        161,558     161,558    176,653    150,000    150,000
Other borrowings     15,877      15,877     15,918     15,925     15,933
Total liabilities    2,374,624   2,417,837  2,468,610  1,893,144  1,859,060
                                                                 
Preferred stock      17,421      17,921     18,921     18,921     18,921
Common stock         20,343      20,309     20,240     18,083     18,083
Additional paid-in   213,829     213,320    212,510    188,149    188,118
capital
Retained earnings    113,013     107,055    99,418     97,588     93,656
Treasury stock, at   (6,458)     (5,446)    (5,672)    (5,721)    (5,721)
cost
Accumulated other    (1,675)     (1,346)    (3,706)    (6,895)    (7,328)
comprehensive loss
Total stockholders'  356,473     351,813    341,711    310,125    305,729
equity
Total liabilities                 $          $          $          $
and stockholders'    $2,731,097 2,769,650   2,810,321   2,203,269   2,164,789
equity
                                                                 
Shares outstanding   20,018,966  20,086,404 20,008,181 17,849,376 17,849,376
at period end
Book value per
common share at      $16.80     $16.50    $16.03    $16.19    $15.96
period end ^(1)
Tangible book value
per common share at  $11.59     $11.45    $11.19    $11.64    $11.40
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
                          December 31, September June 30,  March 31, December
(Amounts in thousands)    2012         30,       2012      2012      31,
                                       2012                          2011
Allowance for Loan Losses                                        
on Non-covered Loans
Beginning balance         $25,835    $26,171 $25,800 $26,205 $26,407
Provision for loan losses 1,220       1,916    1,620    922      2,436
Charge-offs               (1,717)     (2,613)  (1,613)  (1,562)  (2,915)
Recoveries                432         361      364      235      277
Net charge-offs           (1,285)     (2,252)  (1,249)  (1,327)  (2,638)
Ending balance            $25,770    $25,835 $26,171 $25,800 $26,205
                                                                
Summary of Asset Quality                                         
Non-covered loans                                                
Nonaccrual loans         $23,931    $26,514 $27,947 $24,617 $24,487
Accruing loans past due   --          --       --       --       --
90 days or more
Troubled debt
restructurings ("TDRs")   4,734       121      469      2,668    600
^(1)
Total non-covered         28,665      26,635   28,416   27,285   25,087
nonperforming loans
Other real estate owned
("OREO") not covered      5,749       5,957    4,938    3,829    5,914
under FDIC loss share
agreements
Total non-covered         $34,414    $32,592 $33,354 $31,114 $31,001
nonperforming assets
Covered Loans                                                    
Nonaccrual loans         $4,323     $2,849  $--     $--     $--
Accruing loans past due   --          --       --       --       --
90 days or more
Total covered             4,323       2,849    --       --       --
nonperforming loans
OREO covered under FDIC   3,255       3,553    5,325    --       --
loss share agreements
Total covered             7,578       6,402    5,325    --       --
nonperforming assets
Total nonperforming       $41,992    $38,994 $38,679 $31,114 $31,001
assets
                                                                
Performing TDRs ^ (2)     $6,038     $6,742  $6,995  $7,052  $8,854
Total TDRs ^ (3)          $10,772    $6,863  $7,464  $9,720  $9,454
                                                                
Asset Quality Ratios                                             
Excluding covered assets                                        
Nonperforming loans to    1.89%        1.73%     1.81%     1.97%     1.80%
total loans
Nonperforming assets to   1.37%        1.28%     1.30%     1.41%     1.43%
total assets
Allowance for loan losses 89.90%       97.00%    92.10%    94.56%    104.46%
to nonperforming loans
Allowance for loan losses
to non-covered total      1.70%        1.68%     1.67%     1.86%     1.88%
loans
Annualized net
charge-offs to average    0.33%        0.57%     0.38%     0.38%     0.76%
loans
Including covered assets                                         
Nonperforming loans to    1.91%        1.67%     1.57%     1.97%     1.80%
total loans
Nonperforming assets to   1.54%        1.41%     1.38%     1.41%     1.43%
total assets
Allowance for loan losses 78.12%       87.62%    92.10%    94.56%    104.46%
to nonperforming loans
Allowance for loan losses 1.49%        1.46%     1.45%     1.86%     1.88%
to total loans
                                                                
                                                                
(1) Accruing TDRs
restructured within the                                          
past six months
(2) Accruing TDRs with
six months or more of                                            
satisfactory payment
performance
(3) Accruing
nonperforming and                                                
performing TDRs


FIRST COMMUNITY BANCSHARES, INC.
SELECTED FINANCIAL INFORMATION (Unaudited)
                                                                
                As of and for the Quarter Ended
                 December 31, September    June 30,     March 31,    December 31,
                2012         30,          2012         2012         2011
                              2012
Selected Ratios                                                  
Return on        1.19%        1.41%        0.65%        1.06%        0.54%
average assets
Return on
average common   9.59%        11.91%       5.00%        7.88%        4.06%
equity
Net interest     4.49%        4.48%        3.93%        3.91%        3.93%
margin
Efficiency ratio 56.38%       55.49%       57.58%       57.18%       56.73%
for the quarter
Efficiency ratio 55.68%       52.40%       57.38%       57.18%       59.56%
year-to-date
Total equity to  13.05%       12.70%       12.16%       14.08%       14.12%
total assets
Average earning
assets to        86.87%       87.02%       87.68%       88.24%       88.27%
average assets
Average loans to 85.71%       87.88%       88.57%       89.85%       89.45%
average deposits
                                                                
(Amounts in                                                      
thousands)
Average Balances                                                 
Loans           $1,745,584 $1,790,489 $1,512,451 $1,394,246 $1,392,650
Investment       519,798     528,126     490,219     481,595     479,638
securities
Earning assets   2,376,805   2,408,442   2,069,799   1,918,366   1,913,768
Total assets     2,736,037   2,767,790   2,360,567   2,174,004   2,168,166
Total deposits   2,036,697   2,037,467   1,707,613   1,551,728   1,556,990
Interest-bearing 1,699,991   1,733,987   1,437,548   1,312,865   1,320,186
deposits
Borrowings       314,645     329,958     303,474     290,015     295,303
Interest-bearing 2,014,636   2,063,945   1,741,022   1,602,880   1,615,489
liabilities
Stockholders'    356,812     347,637     323,994     310,795     306,779
equity
Tax equivalent
net interest     26,832      27,139      20,206      18,660      18,947
income


FIRST COMMUNITY BANCSHARES, INC.
AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
                                                                    
                   Three Months Ended December 31,
                   2012                           2011
                                           Average                        Average
(Amounts in         Average                Yield/  Average               Yield/
thousands)          Balance      Interest  Rate    Balance      Interest  Rate
                                 ^(1)      ^(1)                 ^(1)      ^(1)
Assets                                                               
Earning assets                                                       
Loans ^(2)          $1,745,584 $28,231 6.43%   $1,392,650 $19,987 5.69%
Securities          518,982     3,623    2.78%   476,244     3,784    3.15%
available-for-sale
Securities          816         16       7.80%   3,394       70       8.18%
held-to-maturity
Interest-bearing    111,423     82       0.29%   41,480      41       0.39%
deposits
Total earning       2,376,805   31,952   5.35%   1,913,768   23,882   4.95%
assets
Other assets       359,232                     254,398              
Total assets        $2,736,037                 $2,168,166          
                                                                    
Liabilities                                                          
Interest-bearing                                                     
deposits
Demand deposits    $351,329   $62     0.07%   $277,722   $27     0.04%
Savings deposits   495,116     156      0.13%   395,530     117      0.12%
Time deposits       853,546     2,386    1.11%   646,934     2,493    1.53%
Total
interest-bearing    1,699,991   2,604    0.61%   1,320,186   2,637    0.79%
deposits
Borrowings                                                           
Federal funds       --          --       0.00%   308         --       0.00%
purchased
Retail repurchase   79,014      105      0.53%   79,114      103      0.52%
agreements
Wholesale
repurchase          58,196      540      3.69%   50,000      479      3.80%
agreements
FHLB advances and   177,435     1,871    4.19%   165,881     1,716    4.10%
other borrowings
Total borrowings    314,645     2,516    3.18%   295,303     2,298    3.09%
Total
interest-bearing    2,014,636   5,120    1.01%   1,615,489   4,935    1.21%
liabilities
Noninterest-bearing 336,706                     236,804              
demand deposits
Other liabilities   27,883                      9,094                
Total liabilities   2,379,225                   1,861,387            
Stockholders'       356,812                     306,779              
equity
Total liabilities
and stockholders'   $2,736,037                 $2,168,166          
equity
Net interest
income, tax                     $26,832                    $18,947 
equivalent
Net interest rate                        4.34%                        3.74%
spread ^(3)
Net interest                             4.49%                        3.93%
margin^(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.


FIRST COMMUNITY BANCSHARES, INC.
AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
                                                                    
                   Year Ended December 31,
                   2012                           2011
                                           Average                        Average
(Amounts in         Average               Yield/  Average               Yield/
thousands)          Balance      Interest  Rate    Balance      Interest  Rate
                                 ^(1)      ^(1)                 ^(1)      ^(1)
Assets                                                               
Earning assets                                                       
Loans ^(2)          $1,611,557 $96,803 6.01%   $1,382,097 $80,742 5.84%
Securities          502,416     15,170   3.02%   434,583     15,775   3.63%
available-for-sale
Securities          2,622       171      6.52%   3,999       333      8.33%
held-to-maturity
Interest-bearing    77,851      259      0.33%   116,063     285      0.25%
deposits
Total earning       2,194,446   112,403  5.12%   1,936,742   97,135   5.02%
assets
Other assets       316,485                     258,897              
Total assets        $2,510,931                 $2,195,639          
                                                                    
Liabilities                                                          
Interest-bearing                                                     
deposits
Demand deposits    $306,019   $185    0.06%   $277,263   $431    0.16%
Savings deposits   471,406     556      0.12%   410,240     886      0.22%
Time deposits       776,901     9,231    1.19%   682,997     11,471   1.68%
Total
interest-bearing    1,554,326   9,972    0.64%   1,370,500   12,788   0.93%
deposits
Borrowings                                                           
Federal funds       490         2        0.41%   77          --       0.00%
purchased
Retail repurchase   78,608      449      0.57%   83,564      544      0.65%
agreements
Wholesale
repurchase          55,163      2,023    3.67%   50,000      1,887    3.77%
agreements
FHLB advances and   175,333     7,154    4.08%   168,988     6,928    4.10%
other borrowings
Total borrowings    309,594     9,628    3.11%   302,629     9,359    3.09%
Total
interest-bearing    1,863,920   19,600   1.05%   1,673,129   22,147   1.32%
liabilities
Noninterest-bearing 286,950                     223,233              
demand deposits
Other liabilities   25,160                      4,127                
Total liabilities   2,176,030                   1,900,489            
Stockholders'       334,901                     295,150              
equity
Total liabilities
and stockholders'   $2,510,931                 $2,195,639          
equity
Net interest
income, tax                     $92,803                    $74,988 
equivalent
Net interest rate                        4.07%                        3.69%
spread ^(3)
Net interest                             4.23%                        3.87%
margin^(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

First Community Bancshares, Inc. Logo
 
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