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Section 1: 8-K (FORM 8-K)

fcbc20170425_8k.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 
 

Date of Report (Date of earliest event reported): April 25, 2017

 
 
 

FIRST COMMUNITY BANCSHARES, INC.

 

(Exact name of registrant as specified in its charter)

 
 

Nevada

 

000-19297

 

55-0694814

(State or other jurisdiction

 

(Commission

 

(IRS Employer

of incorporation)

 

File Number)

 

Identification No.)

 
 

P.O. Box 989

Bluefield, Virginia

 

24605-0989

(Address of principal executive offices)

 

(Zip Code)

 
 

Registrant’s telephone number, including area code: (276) 326-9000

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[   ]    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

[   ]    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

[   ]    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

[   ]    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 
 

 

 

Item 2.02     Results of Operations and Financial Condition.

 

On April 25, 2017, First Community Bancshares, Inc. (the “Company”) announced by press release its earnings for the first quarter of 2017. A copy of the press release is attached hereto as Exhibit 99.1.

 

Item 5.07 Submission of Matters to a Vote of Security Holders

 

On April 25, 2017, the Company held its annual shareholders’ meeting. At the meeting, the Company’s shareholders: (i) elected all persons listed below under Proposal 1 to serve as director of the Company for a term that will continue until the 2020 annual meeting of shareholders; (ii) approved on a non-binding basis, the compensation of the Company’s named executive officers; (iii) approved a three year frequency of the advisory vote on executive compensation; and (iv) ratified the appointment of Dixon Hughes Goodman LLP as the Company’s independent registered public accounting firm.

 

The following tables summarize voting results by the Company’s shareholders.

 

Proposal 1: To elect three directors to serve as members of the Board of Directors Class of 2020.

 

Nominee

 

Votes FOR

 

Votes WITHHELD

 

Broker Non-Votes

             

C. William Davis

 

9,686,481

 

445,426

 

2,111,371

Gary R. Mills

 

8,998,690

 

1,133,217

   

M. Adam Sarver

 

9,321,323

 

810,584

   

 

Proposal 2: To approve on a non-binding basis, the compensation of the Company’s named executive officers.

 

Votes FOR

 

Votes AGAINST

 

Votes ABSTAIN

     

 

             

9,781,030

 

319,233

 

31,644

     

 

Proposal 3: To approve the frequency of the advisory vote on executive compensation.

 

3 Years

 

2 Years

 

1 Year

 

Votes ABSTAIN

 

 

             

5,661,055

 

159,325

 

4,264,115

 

47,412

 

 

Proposal 4: To ratify the appointment of Dixon Hughes Goodman LLP as the Company’s independent registered public accounting firm.

 

Votes FOR

 

Votes AGAINST

 

Votes ABSTAIN

   

 

           

11,942,284

 

242,849

 

58,145

   

 

Item 8.01     Other Events.     

 

On April 25, 2017, the Company announced by press release its quarterly cash dividend to common stockholders of sixteen cents ($0.16) per common share, payable on May 19, 2017, to shareholders of record on May 5, 2017. A copy of the press release is attached hereto as Exhibit 99.1.

 

Item 9.01     Financial Statements and Exhibits.

 

(d)

 

The following exhibit is included with this report:

 

 

 

Exhibit No.

 

Exhibit Description

 

 

 

99.1

 

Earnings and dividend press release dated April 25, 2017

 

 
 

 

 

Forward-Looking Statements 

 

This Current Report on Form 8-K contains 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.

 

 
 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

FIRST COMMUNITY BANCSHARES, INC.

     

Date:

April 26, 2017

 

By:

/s/ David D. Brown

     
   

David D. Brown

   

Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Section 2: EX-99.1 (EXHIBIT 99.1)

ex99-1.htm

Exhibit 99.1

 

NEWS RELEASE

FOR IMMEDIATE RELEASE:

 

FOR MORE INFORMATION, CONTACT:

April 25, 2017

 

David D. Brown

   

(276) 326-9000

 

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

 

Bluefield, Virginia – First Community Bancshares, Inc. (NASDAQ: FCBC) (www.fcbinc.com) (the “Company”) today reported its unaudited results of operations and other financial information for the quarter ended March 31, 2017. The Company reported net income available to common shareholders of $6.20 million, or $0.36 per diluted common share for the quarter ended March 31, 2017, which represents a 5.88% increase in per share diluted earnings compared to the same quarter of 2016.

 

The Company also announced today that the Board of Directors declared a quarterly cash dividend to common shareholders of sixteen cents ($0.16) per common share, which represents an increase of 14.29% over the first quarter of 2016. The quarterly dividend is payable to common shareholders of record on May 5, 2017, and is expected to be paid on or about May 19, 2017. The current year marks the 32nd consecutive year of cash dividends paid to stockholders.

 

First Quarter 2017 Highlights

 

Income Statement

 

o

Net income available to common shareholders increased $118 thousand, or 1.94%, to $6.20 million compared to the same quarter of 2016.

 

o

Diluted earnings per share increased $0.02, or 5.88%, to $0.36 compared to the same quarter of 2016.

 

o

Core, non-GAAP diluted earnings per common share increased $0.03, or 9.09%, to $0.36 compared to the same quarter of 2016.

 

o

Net interest margin increased 16 basis points to 4.17%, and normalized net interest margin increased 21 basis points to 3.95% compared to the same quarter of 2016.

 

Balance Sheet

 

o

Book value per common share increased $0.23 to $20.18 compared to December 31, 2016.

 

o

On January 9, 2017, the Company redeemed all of its previously issued trust preferred securities totaling $15.46 million. The callable trust preferred securities bore an interest rate of three-month LIBOR plus 2.95% with a maturity date of October 8, 2033.

 

o

The Company and its subsidiary bank both significantly exceed regulatory “well capitalized” targets as of March 31, 2017.

 

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 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.

 

 
1

 

 

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 45 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of March 31, 2017. First Community Bank provides insurance services through First Community Insurance Services, which operated 6 in-branch locations in Virginia and West Virginia as of March 31, 2017, and offers wealth management and investment advice through its Trust Division and First Community Wealth Management, which collectively managed $906 million in combined assets as of March 31, 2017. The Company reported consolidated assets of $2.43 billion as of March 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.fcbinc.com.

 

This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent 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.

 

 
2

 

 

 

Financial Performance

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)                    

 

   

Three Months Ended

 
   

March 31,

   

December 31,

   

September 30,

   

June 30,

   

March 31,

 

(Amounts in thousands, except share and per share data)

 

2017

   

2016

   

2016

   

2016

   

2016

 

Interest income

                                       

Interest and fees on loans

  $ 21,827     $ 21,956     $ 21,952     $ 22,237     $ 21,573  

Interest on securities

    1,206       1,362       1,643       1,891       1,957  

Interest on deposits in banks

    159       98       26       9       20  

Total interest income

    23,192       23,416       23,621       24,137       23,550  

Interest expense

                                       

Interest on deposits

    1,166       1,145       1,133       1,087       1,114  

Interest on borrowings

    885       1,314       1,367       1,359       1,325  

Total interest expense

    2,051       2,459       2,500       2,446       2,439  

Net interest income

    21,141       20,957       21,121       21,691       21,111  

Provision for (recovery of) loan losses

    492       500       (1,154 )     722       1,187  

Net interest income after provision (recovery)

    20,649       20,457       22,275       20,969       19,924  

Total noninterest income

    5,691       6,238       5,895       7,030       7,903  

Total noninterest expense

    17,083       16,653       18,557       18,722       18,814  

Income before income taxes

    9,257       10,042       9,613       9,277       9,013  

Income tax expense

    3,055       3,638       3,230       3,022       2,929  

Net income

    6,202       6,404       6,383       6,255       6,084  

Dividends on preferred stock

    -       -       -       -       -  

Net income available to common shareholders

  $ 6,202     $ 6,404     $ 6,383     $ 6,255     $ 6,084  
                                         

Earnings per common share

                                       

Basic

  $ 0.36     $ 0.38     $ 0.37     $ 0.36     $ 0.34  

Diluted

    0.36       0.38       0.37       0.36       0.34  

Cash dividends per common share

    0.16       0.16       0.16       0.14       0.14  

Weighted average shares outstanding

                                       

Basic

    16,998,125       16,891,010       17,031,074       17,414,320       17,859,197  

Diluted

    17,072,174       17,043,869       17,083,526       17,462,845       17,892,531  

Performance ratios

                                       

Return on average assets

    1.06 %     1.05 %     1.03 %     1.02 %     0.99 %

Return on average common equity

    7.35 %     7.49 %     7.58 %     7.47 %     7.15 %

Return on average tangible common equity(1)

    10.50 %     10.75 %     11.07 %     10.88 %     10.34 %

 


(1)

A non-GAAP financial measure defined as average stockholders’ equity less average goodwill, other intangibles, and preferred stock liquidation preference

 

 
3

 

 

RECONCILIATION OF GAAP NET INCOME TO CORE EARNINGS (Unaudited)

 

   

Three Months Ended

 
   

March 31,

   

December 31,

   

September 30,

   

June 30,

   

March 31,

 
   

2017

   

2016

   

2016

   

2016

   

2016

 

(Amounts in thousands, except per share data)

                                       

Net income, GAAP

  $ 6,202     $ 6,404     $ 6,383     $ 6,255     $ 6,084  

Non-GAAP adjustments:

                                       

Net gain on divestitures

    -       (619 )     (3,065 )     -       -  

Allowance reversal for sold loans

    -       -       (1,354 )     -       -  

Merger, acquisition, and divestiture expense

    -       55       226       410       39  

Net (gain) loss on sale of securities

    -       (388 )     (25 )     79       (1 )

Net impairment losses

    -       -       4,635       11       -  

Other non-core items

    (18 )     (48 )     (264 )     -       (240 )

Total adjustments to core earnings

    (18 )     (1,000 )     153       500       (202 )

Tax effect

    (7 )     (708 )     56       184       (74 )

Core earnings, non-GAAP(1)

  $ 6,191     $ 6,112     $ 6,480     $ 6,571     $ 5,956  
                                         

Core diluted earnings per common share

  $ 0.36     $ 0.36     $ 0.38     $ 0.38     $ 0.33  

Performance ratios

                                       

Core return on average assets

    1.06 %     1.01 %     1.05 %     1.07 %     0.97 %

Core return on average common equity

    7.33 %     7.15 %     7.70 %     7.85 %     7.00 %

Core return on average tangible common equity(2)

    10.48 %     10.26 %     11.24 %     11.43 %     10.12 %

 


(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, other intangibles, and preferred stock liquidation preference

 

 

 
4

 

 

Net Interest Income and Margin

 

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)

 

   

Three Months Ended March 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)

  $ 1,838,837     $ 21,895       4.83 %   $ 1,730,401     $ 21,599       5.02 %

Securities available for sale

    161,738       1,483       3.72 %     354,582       2,268       2.57 %

Securities held to maturity

    47,112       152       1.31 %     72,512       194       1.08 %

Interest-bearing deposits

    55,754       159       1.16 %     15,591       20       0.52 %

Total earning assets

    2,103,441       23,689       4.57 %     2,173,086       24,081       4.45 %

Other assets

    270,597                       297,156                  

Total assets

  $ 2,374,038                     $ 2,470,242                  
                                                 

Liabilities and stockholders' equity

                                               

Interest-bearing deposits

                                               

Demand deposits

  $ 381,050     $ 102       0.11 %   $ 342,524     $ 57       0.07 %

Savings deposits

    525,573       36       0.03 %     535,769       66       0.05 %

Time deposits

    515,506       1,028       0.81 %     533,635       991       0.75 %

Total interest-bearing deposits

    1,422,129       1,166       0.33 %     1,411,928       1,114       0.32 %

Borrowings

                                               

Federal funds purchased

    -       -       -       3,424       5       0.59 %

Retail repurchase agreements

    66,947       11       0.07 %     77,993       13       0.07 %

Wholesale repurchase agreements

    25,000       199       3.23 %     50,000       468       3.76 %

FHLB advances and other borrowings

    66,618       675       4.11 %     108,013       839       3.12 %

Total borrowings

    158,565       885       2.26 %     239,430       1,325       2.23 %

Total interest-bearing liabilities

    1,580,694       2,051       0.53 %     1,651,358       2,439       0.59 %

Noninterest-bearing demand deposits

    425,540                       448,849                  

Other liabilities

    25,477                       27,784                  

Total liabilities

    2,031,711                       2,127,991                  

Stockholders' equity

    342,327                       342,251                  

Total liabilities and stockholders' equity

  $ 2,374,038                     $ 2,470,242                  

Net interest income, FTE

          $ 21,638                     $ 21,642          

Net interest rate spread

                    4.04 %                     3.86 %

Net interest margin

                    4.17 %                     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.

 

 
5

 

 

RECONCILIATION OF GAAP NET INTEREST MARGIN TO NON-GAAP NORMALIZED NET INTEREST MARGIN (Unaudited)

 

   

Three Months Ended March 31,

 
   

2017

   

2016

 

(Amounts in thousands)

 

Interest(1)

   

Average Yield/ Rate(1)

   

Interest(1)

   

Average Yield/ Rate(1)

 

Earning assets

                               

Loans(2)

  $ 21,895       4.83 %   $ 21,599       5.02 %

Accretion income

    1,784               2,252          

Less: cash accretion income

    650               805          

Non-cash accretion income

    1,134               1,447          

Loans, normalized(3)

    20,761       4.58 %     20,152       4.68 %

Other earning assets

    1,794       2.75 %     2,482       2.26 %

Total earning assets

    22,555       4.35 %     22,634       4.18 %

Total interest-bearing liabilities

    2,051       0.53 %     2,439       0.59 %

Net interest income, FTE(3)

  $ 20,504             $ 20,195          

Net interest rate spread, normalized(3)

            3.82 %             3.60 %

Net interest margin, normalized(3)

            3.95 %             3.74 %

 


(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.

 

 
6

 

 

Noninterest Income and Expense

 

CONDENSED QUARTERLY STATEMENTS OF INCOME (Unaudited)

 

   

Three Months Ended

 
   

March 31,

   

December 31,

   

September 30,

   

June 30,

   

March 31,

 

(Amounts in thousands)

 

2017

   

2016

   

2016

   

2016

   

2016

 

Noninterest income

                                       

Wealth management

  $ 790     $ 681     $ 653     $ 810     $ 684  

Service charges on deposits

    3,113       3,442       3,494       3,361       3,291  

Other service charges and fees

    2,078       2,014       2,024       2,054       2,010  

Insurance commissions

    373       59       1,592       1,600       2,191  

Net impairment losses recognized in earnings

    -       -       (4,635 )     (11 )     -  

Net gain (loss) on sale of securities

    -       388       25       (79 )     1  

Net FDIC indemnification asset amortization

    (1,332 )     (1,618 )     (1,369 )     (1,328 )     (1,159 )

Net gain on divestitures

    -       619       3,065       -       -  

Other operating income

    669       653       1,046       623       885  

Total noninterest income

    5,691       6,238       5,895       7,030       7,903  

Noninterest expense

                                       

Salaries and employee benefits

    8,884       9,411       9,828       10,198       10,475  

Occupancy expense

    1,248       1,158       1,249       1,359       1,531  

Furniture and equipment expense

    1,091       1,070       1,066       1,109       1,096  

Amortization of intangibles

    261       265       316       277       278  

FDIC premiums and assessments

    244       274       363       372       374  

Merger, acquisition, and divestiture expense

    -       55       226       410       39  

Other operating expense

    5,355       4,420       5,509       4,997       5,021  

Total noninterest expense

    17,083       16,653       18,557       18,722       18,814  

 

 

Efficiency Ratio

 

EFFICIENCY RATIO CALCULATION (Unaudited)

 

   

Three Months Ended

 
   

March 31,

   

December 31,

   

September 30,

   

June 30,

   

March 31,

 
   

2017

   

2016

   

2016

   

2016

   

2016

 

(Amounts in thousands)

                                       

Noninterest expense, GAAP

  $ 17,083     $ 16,653     $ 18,557     $ 18,722     $ 18,814  

Non-GAAP adjustments

                                       

Merger, acquisition, and divestiture expense

    -       (55 )     (226 )     (410 )     (39 )

OREO expense and net loss

    (328 )     (184 )     (278 )     (247 )     (711 )

Other non-core items

    -       8       (168 )     (30 )     (174 )

Adjusted noninterest expense

    16,755       16,422       17,885       18,035       17,890  
                                         

Net interest income, GAAP

    21,141       20,957       21,121       21,691       21,111  

Noninterest income, GAAP

    5,691       6,238       5,895       7,030       7,903  

Non-GAAP adjustments

                                       

Tax equivalency adjustment

    497       520       509       521       531  

Net impairment losses

    -       -       4,635       11       -  

Net (gain) loss on sale of securities

    -       (388 )     (25 )     79       (1 )

Net gain on divestitures

    -       (619 )     (3,065 )     -       -  

Other non-core items

    (18 )     (40 )     (432 )     (30 )     (414 )

Adjusted net interest and noninterest income

    27,311       26,668       28,638       29,302       29,130  
                                         

Non-GAAP efficiency ratio(1)

    61.35 %     61.58 %     62.45 %     61.55 %     61.41 %

GAAP efficiency ratio

    63.67 %     61.24 %     68.69 %     65.19 %     64.84 %

 


(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

 

 

 
7

 

 

Balance Sheet and Capital

 

CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited)

 

   

March 31,

   

December 31,

   

September 30,

   

June 30,

   

March 31,

 

(Amounts in thousands, except per share data)

 

2017

   

2016

   

2016

   

2016

   

2016

 

Assets

                                       

Total cash and cash equivalents

  $ 152,851     $ 76,307     $ 65,929     $ 44,301     $ 39,587  

Securities available for sale

    158,685       165,579       220,856       322,699       338,469  

Securities held to maturity

    47,092       47,133       72,182       72,239       72,485  

Loans held for investment, net of unearned income

                                       

Non-covered

    1,784,371       1,795,954       1,774,547       1,733,398       1,685,891  

Covered

    51,412       56,994       61,837       68,585       76,538  

Less allowance for loan losses

    (18,458 )     (17,948 )     (19,633 )     (21,099 )     (20,467 )

Loans held for investment, net

    1,817,325       1,835,000       1,816,751       1,780,884       1,741,962  

FDIC indemnification asset

    9,931       12,173       14,332       16,431       18,787  

Premises and equipment, net

    50,057       50,085       50,564       50,199       50,799  

Other real estate owned, non-covered

    4,477       5,109       4,052       4,187       5,313  

Other real estate owned, covered

    241       276       2,437       2,017       2,279  

Interest receivable

    5,059       5,553       5,498       6,115       5,968  

Goodwill

    95,779       95,779       101,776       100,486       100,486  

Other intangible assets

    6,947       7,207       7,964       4,688       4,965  

Other assets

    82,069       86,197       87,932       91,082       89,187  

Total assets

  $ 2,430,513     $ 2,386,398     $ 2,450,273     $ 2,495,328     $ 2,470,287  
                                         

Liabilities

                                       

Deposits

                                       

Noninterest-bearing

  $ 467,677     $ 427,705     $ 473,509     $ 451,003     $ 453,336  

Interest-bearing

    1,438,917       1,413,633       1,388,390       1,373,412       1,421,329  

Total deposits

    1,906,594       1,841,338       1,861,899       1,824,415       1,874,665  

Federal funds purchased

    -       -       -       42,000       18,000  

Securities sold under agreements to repurchase

    90,653       98,005       118,532       113,392       134,661  

FHLB borrowings

    65,000       65,000       90,000       140,000       65,000  

Other borrowings

    244       15,708       15,707       15,756       15,756  

Interest, taxes, and other liabilities

    24,618       27,290       26,599       25,553       24,576  

Total liabilities

    2,087,109       2,047,341       2,112,737       2,161,116       2,132,658  
                                         

Stockholders' equity

                                       

Common stock

    21,382       21,382       21,382       21,382       21,382  

Additional paid-in capital

    228,176       228,142       227,884       227,791       227,725  

Retained earnings

    173,860       170,377       166,689       163,030       159,223  

Treasury stock, at cost

    (78,533 )     (78,833 )     (78,789 )     (74,974 )     (64,968 )

Accumulated other comprehensive (loss) income

    (1,481 )     (2,011 )     370       (3,017 )     (5,733 )

Total stockholders' equity

    343,404       339,057       337,536       334,212       337,629  

Total liabilities and stockholders' equity

  $ 2,430,513     $ 2,386,398     $ 2,450,273     $ 2,495,328     $ 2,470,287  
                                         

Shares outstanding at period-end

    17,013,185       16,994,208       16,988,972       17,155,322       17,631,011  

Book value per common share(1)

  $ 20.18     $ 19.95     $ 19.87     $ 19.48     $ 19.15  

Tangible book value per common share(2)

    14.15       13.89       13.41       13.35       13.17  

 


(1)

Stockholders' equity divided by as-converted common shares outstanding

(2)

A non-GAAP financial measure defined as stockholders’ equity less goodwill and other intangibles, divided by as-converted common shares outstanding

 

 
8

 

 

Asset Quality

 

SELECTED CREDIT QUALITY INFORMATION (Unaudited)

 

   

March 31,

   

December 31,

   

September 30,

   

June 30,

   

March 31,

 

(Amounts in thousands)

 

2017

   

2016

   

2016

   

2016

   

2016

 

Allowance for Loan Losses

                                       

Beginning balance

  $ 17,948     $ 19,633     $ 21,099     $ 20,467     $ 20,233  

Provision for (recovery of) loan losses charged to operations

    492       500       (1,154 )     722       1,187  

(Recovery of) provision for loan losses recorded through the FDIC indemnification asset

    -       -       -       (10 )     9  

Charge-offs

    (357 )     (2,485 )     (772 )     (691 )     (1,228 )

Recoveries

    375       300       460       611       266  

Net recoveries (charge-offs)

    18       (2,185 )     (312 )     (80 )     (962 )

Ending balance

  $ 18,458     $ 17,948     $ 19,633     $ 21,099     $ 20,467  
                                         

Nonperforming Assets

                                       

Non-covered nonperforming assets

                                       

Nonaccrual loans

  $ 18,537     $ 15,854     $ 17,487     $ 16,626     $ 16,196  

Accruing loans past due 90 days or more

    20       -       62       64       243  

Troubled debt restructurings ("TDRs")(1)

    -       114       115       115       158  

Total non-covered nonperforming loans

    18,557       15,968       17,664       16,805       16,597  

OREO

    4,477       5,109       4,052       4,187       5,313  

Total non-covered nonperforming assets

  $ 23,034     $ 21,077     $ 21,716     $ 20,992     $ 21,910  
                                         

Covered nonperforming assets

                                       

Nonaccrual loans

  $ 918     $ 608     $ 688     $ 680     $ 1,955  

Total covered nonperforming loans

    918       608       688       680       1,955  

OREO

    241       276       2,437       2,017       2,279  

Total covered nonperforming assets

  $ 1,159     $ 884     $ 3,125     $ 2,697     $ 4,234  
                                         

Additional Information

                                       

Performing TDRs(2)

  $ 8,593     $ 12,838     $ 13,336     $ 13,562     $ 13,474  

Total TDRs(3)

    8,593       12,952       13,451       13,677       13,632  
                                         

Non-covered ratios

                                       

Nonperforming loans to total loans

    1.04 %     0.89 %     1.00 %     0.97 %     0.98 %

Nonperforming assets to total assets

    0.97 %     0.90 %     0.91 %     0.87 %     0.92 %

Non-PCI allowance to nonperforming loans

    99.40 %     112.32 %     111.08 %     125.48 %     123.17 %

Non-PCI allowance to total loans

    1.03 %     1.00 %     1.11 %     1.22 %     1.21 %

Annualized net charge-offs to average loans

    0.00 %     0.49 %     0.07 %     0.02 %     0.23 %
                                         

Total ratios

                                       

Nonperforming loans to total loans

    1.06 %     0.89 %     1.00 %     0.97 %     1.05 %

Nonperforming assets to total assets

    1.00 %     0.92 %     1.01 %     0.95 %     1.06 %

Allowance for loan losses to nonperforming loans

    94.78 %     108.28 %     106.98 %     120.67 %     110.32 %

Allowance for loan losses to total loans

    1.01 %     0.97 %     1.07 %     1.17 %     1.16 %

Annualized net charge-offs to average loans

    0.00 %     0.47 %     0.07 %     0.02 %     0.22 %

 


(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

 

 

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