Exhibit 99.1

 

 

NEWS RELEASE

 

FOR IMMEDIATE RELEASE:	FOR MORE INFORMATION, CONTACT:
January 24, 2017	David D. Brown
	(276) 326-9000

 

First Community Bancshares, Inc. Announces Fourth Quarter and Full Year 2016 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 and year ended December 31, 2016. The Company reported net income available to common shareholders of $6.40 million, or $0.38 per diluted common share for the quarter ended December 31, 2016, which represents an 11.76% increase in per share diluted earnings compared to the same quarter of 2015. Net income available to common shareholders was $25.13 million, or $1.45 per diluted common share for the year ended December 31, 2016, which represents a 10.69% increase in per share diluted earnings over 2015.

 

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 February 3, 2017, and is expected to be paid on or about February 17, 2017. The current year marks the 32^nd consecutive year of cash dividends paid to stockholders.

 

On October 1, 2016, the Company sold two North Carolina insurance offices operating under the trade name Greenpoint Insurance Group, Inc. and two Virginia offices operating under the trade name Carr & Hyde Insurance to Ascension Insurance Agency, Inc. The transaction does not impact the Company’s in-branch insurance offices operating as First Community Insurance Services, Inc. in West Virginia and Virginia.

 

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.

 

Fourth Quarter 2016 Highlights

 

·

Income Statement

o

Net income available to common shareholders increased $256 thousand, or 4.16%, to $6.40 million compared to the same quarter of 2015.

o

Diluted earnings per share increased $0.04, or 11.76%, to $0.38 compared to the same quarter of 2015.

o

Core, non-GAAP diluted earnings per common share increased $0.02, or 5.88%, to $0.36 compared to the same quarter of 2015.

o

Net interest margin increased 1 basis point to 3.99%, and normalized net interest margin increased 15 basis points to 3.83% compared to the same quarter of 2015.

 

·

Balance Sheet

o

The non-covered loan portfolio increased $172.45 million, or 10.62%, compared to December 31, 2015.

o

Book value per common share increased $1.00 to $19.95 compared to December 31, 2015.

o

The Company repurchased 29,518 common shares during the quarter resulting in 1,182,294 shares repurchased during the year. The Company has repurchased 2.55 million shares since January 1, 2014.

o

The Company and its subsidiary bank both significantly exceed regulatory “well capitalized” targets as of December 31, 2016.

 

·

Asset Quality

o

Total nonperforming assets decreased $5.51 million compared to December 31, 2015, largely due to a decrease in covered OREO.

o

Total non-covered nonperforming assets decreased $1.72 million compared to December 31, 2015.

o

Non-covered delinquent loans, which are comprised of loans 30 days or more past due and nonaccrual loans, as a percentage of total non-covered loans improved 33 basis points to 1.39% as of December 31, 2016, from 1.72% as of December 31, 2015.

 

 

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.

 

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 December 31, 2016. First Community Bank provides insurance services through First Community Insurance Services and offers wealth management and investment advice through its Trust Division and First Community Wealth Management, which collectively managed $846 million in combined assets as of December 31, 2016. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. The Company reported consolidated assets of $2.39 billion as of December 31, 2016. 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.

 

 

Financial Performance

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

 

		Three Months Ended																				Year Ended
		December 31,				September 30,				June 30,				March 31,				December 31,				December 31,
(Amounts in thousands, except share and per share data)		2016				2016				2016				2016				2015				2016				2015
Interest income
Interest and fees on loans		$	21,956			$	21,952			$	22,237			$	21,573			$	21,633			$	87,718			$	87,632
Interest on securities			1,362				1,643				1,891				1,957				2,023				6,853				8,203
Interest on deposits in banks			98				26				9				20				21				153				267
Total interest income			23,416				23,621				24,137				23,550				23,677				94,724				96,102
Interest expense
Interest on deposits			1,145				1,133				1,087				1,114				1,202				4,479				5,878
Interest on borrowings			1,314				1,367				1,359				1,325				1,300				5,365				5,471
Total interest expense			2,459				2,500				2,446				2,439				2,502				9,844				11,349
Net interest income			20,957				21,121				21,691				21,111				21,175				84,880				84,753
Provision for (recovery of) loan losses			500				(1,154	)			722				1,187				434				1,255				2,191
Net interest income after  provision (recovery)			20,457				22,275				20,969				19,924				20,741				83,625				82,562
Total noninterest income			6,238				5,895				7,030				7,903				7,483				27,066				29,530
Total noninterest expense			16,653				18,557				18,722				18,814				19,083				72,746				76,171
Income before income taxes			10,042				9,613				9,277				9,013				9,141				37,945				35,921
Income tax expense			3,638				3,230				3,022				2,929				2,993				12,819				11,381
Net income			6,404				6,383				6,255				6,084				6,148				25,126				24,540
Dividends on preferred stock			-				-				-				-				-				-				105
Net income available to common shareholders		$	6,404			$	6,383			$	6,255			$	6,084			$	6,148			$	25,126			$	24,435
Earnings per common share
Basic		$	0.38			$	0.37			$	0.36			$	0.34			$	0.34			$	1.45			$	1.32
Diluted			0.38				0.37				0.36				0.34				0.34				1.45				1.31
Cash dividends per common share			0.16				0.16				0.14				0.14				0.14				0.60				0.54
Weighted average shares outstanding
Basic			16,891,010				17,031,074				17,414,320				17,859,197				18,193,824				17,319,689				18,531,039
Diluted			17,043,869				17,083,526				17,462,845				17,892,531				18,226,719				17,365,524				18,727,464
Performance ratios
Return on average assets			1.05	%			1.03	%			1.02	%			0.99	%			0.99	%			1.02	%			0.97	%
Return on average common equity			7.49	%			7.58	%			7.47	%			7.15	%			7.05	%			7.42	%			7.08	%
Return on average tangible common equity(1)			10.75	%			11.07	%			10.88	%			10.34	%			10.17	%			10.76	%			10.25	%

 

(1)

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

 

RECONCILIATION OF GAAP NET INCOME TO CORE EARNINGS (Unaudited)

 

		Three Months Ended																				Year Ended
		December 31,				September 30,				June 30,				March 31,				December 31,				December 31,
(Amounts in thousands, except per share data)		2016				2016				2016				2016				2015				2016				2015
Net income, GAAP		$	6,404			$	6,383			$	6,255			$	6,084			$	6,148			$	25,126			$	24,540
Non-GAAP adjustments:
Net gain on divestitures			(619	)			(3,065	)			-				-				-				(3,684	)			-
Allowance reversal for sold loans			-				(1,354	)			-				-				-				(1,354	)			-
Merger, acquisition, and divestiture expense			55				226				410				39				-				730				86
Net (gain) loss on sale of securities			(388	)			(25	)			79				(1	)			7				(335	)			(144	)
FHLB debt prepayment fees			-				-				-				-				-				-				1,702
Net impairment losses			-				4,635				11				-				-				4,646				-
Other non-core items			(48	)			(264	)			-				(240	)			31				(552	)			(1,004	)
Total adjustments to core earnings			(1,000	)			153				500				(202	)			38				(549	)			640
Tax effect			(708	)			56				184				(74	)			14				(542	)			660
Core earnings, non-GAAP(1)		$	6,112			$	6,480			$	6,571			$	5,956			$	6,172			$	25,119			$	24,520
Core diluted earnings per common share		$	0.36			$	0.38			$	0.38			$	0.33			$	0.34			$	1.45			$	1.31
Performance ratios
Core return on average assets			1.01	%			1.05	%			1.07	%			0.97	%			0.99	%			1.02	%			0.97	%
Core return on average common equity			7.15	%			7.70	%			7.85	%			7.00	%			7.08	%			7.42	%			7.09	%
Core return on average tangible common equity(2)			10.26	%			11.24	%			11.43	%			10.12	%			10.21	%			10.75	%			10.25	%

 

(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

 

 

 

Net Interest Income and Margin

 

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)

 

		Three Months Ended December 31,
		2016												2015
		Average								Average Yield/				Average								Average Yield/
(Amounts in thousands)		Balance				Interest(1)				Rate(1)				Balance				Interest(1)				Rate(1)
Assets
Earning assets
Loans(2)		$	1,846,848			$	22,012				4.74	%		$	1,694,569			$	21,661				5.07	%
Securities available for sale			193,342				1,644				3.38	%			377,213				2,349				2.47	%
Securities held to maturity			67,254				182				1.08	%			72,568				194				1.06	%
Interest-bearing deposits			35,470				98				1.10	%			19,544				21				0.43	%
Total earning assets			2,142,914				23,936				4.44	%			2,163,894				24,225				4.44	%
Other assets			275,022												298,312
Total assets		$	2,417,936											$	2,462,206
Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits		$	348,869			$	73				0.08	%		$	344,214			$	47				0.05	%
Savings deposits			522,864				57				0.04	%			530,977				78				0.06	%
Time deposits			519,521				1,015				0.78	%			561,443				1,077				0.76	%
Total interest-bearing deposits			1,391,254				1,145				0.33	%			1,436,634				1,202				0.33	%
Borrowings
Federal funds purchased			82				-				0.00	%			2,114				2				0.38	%
Retail repurchase agreements			66,776				12				0.07	%			74,042				14				0.08	%
Wholesale repurchase agreements			48,913				464				3.77	%			50,000				474				3.76	%
FHLB advances and other borrowings			92,175				838				3.62	%			83,748				810				3.84	%
Total borrowings			207,946				1,314				2.51	%			209,904				1,300				2.46	%
Total interest-bearing liabilities			1,599,200				2,459				0.61	%			1,646,538				2,502				0.60	%
Noninterest-bearing demand deposits			454,161												466,623
Other liabilities			24,410												23,293
Total liabilities			2,077,771												2,136,454
Stockholders' equity			340,165												345,752
Total liabilities and stockholders' equity		$	2,417,936											$	2,482,206
Net interest income, FTE						$	21,477											$	21,723
Net interest rate spread											3.83	%											3.84	%
Net interest margin											3.99	%											3.98	%

 

(1)

Fully taxable equivalent ("FTE") basis based on the federal statutory rate of 35%

(2)

Nonaccrual loans are included in average balances; however, no related interest income is recorded during the period of nonaccrual.

 

 

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)

 

		Year Ended December 31,
		2016												2015
		Average								Average Yield/				Average								Average Yield/
(Amounts in thousands)		Balance				Interest(1)				Rate(1)				Balance				Interest(1)				Rate(1)
Assets
Earning assets
Loans(2)		$	1,793,618			$	87,848				4.90	%		$	1,680,021			$	87,768				5.22	%
Securities available for sale			287,332				8,047				2.80	%			363,359				9,575				2.64	%
Securities held to maturity			71,069				757				1.07	%			70,987				770				1.08	%
Interest-bearing deposits			18,864				153				0.81	%			98,639				267				0.27	%
Total earning assets			2,170,883				96,805				4.46	%			2,213,006				98,380				4.44	%
Other assets			284,575												307,928
Total assets		$	2,455,458											$	2,520,934
Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits		$	342,169			$	250				0.07	%		$	343,036			$	203				0.06	%
Savings deposits			531,050				248				0.05	%			532,221				367				0.07	%
Time deposits			525,162				3,981				0.76	%			631,654				5,308				0.84	%
Total interest-bearing deposits			1,398,381				4,479				0.32	%			1,506,911				5,878				0.39	%
Borrowings
Federal funds purchased			4,058				26				0.64	%			535				2				0.37	%
Retail repurchase agreements			68,701				49				0.07	%			71,262				68				0.10	%
Wholesale repurchase agreements			49,727				1,874				3.77	%			50,000				1,878				3.76	%
FHLB advances and other borrowings			116,602				3,416				2.93	%			89,400				3,523				3.94	%
Total borrowings			239,088				5,365				2.24	%			211,197				5,471				2.59	%
Total interest-bearing liabilities			1,637,469				9,844				0.60	%			1,718,108				11,349				0.66	%
Noninterest-bearing demand deposits			456,474												433,936
Other liabilities			23,040												20,691
Total liabilities			2,116,983												2,172,735
Stockholders' equity			338,475												348,199
Total liabilities and stockholders' equity		$	2,455,458											$	2,520,934
Net interest income, FTE						$	86,961											$	87,031
Net interest rate spread											3.86	%											3.78	%
Net interest margin											4.01	%											3.93	%

 

(1)

Fully taxable equivalent ("FTE") basis based on the federal statutory rate of 35%

(2)

Nonaccrual loans are included in average balances; however, no related interest income is recorded during the period of nonaccrual.

 

 

 

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

 

		Three Months Ended December 31,
		2016								2015
(Amounts in thousands)		Interest(1)				Average Yield/ Rate(1)				Interest(1)				Average Yield/ Rate(1)
Earning assets
Loans(2)		$	22,012				4.74	%		$	21,661				5.07	%
Accretion income			1,506								2,493
Less: cash accretion income			633								824
Non-cash accretion income			873								1,669
Loans, normalized(3)			21,139				4.55	%			19,992				4.68	%
Other earning assets			1,924				2.59	%			2,564				2.17	%
Total earning assets			23,063				4.28	%			22,556				4.13	%
Total interest-bearing liabilities			2,459				0.61	%			2,502				0.60	%
Net interest income, FTE(3)		$	20,604							$	20,054
Net interest rate spread, normalized(3)							3.67	%							3.53	%
Net interest margin, normalized(3)							3.83	%							3.68	%

 

(1)

FTE basis based on the federal statutory rate of 35%

(2)

Nonaccrual loans are included in average balances; however, no related interest income is recorded during the period of nonaccrual.

(3)

Normalized totals are non-GAAP financial measures that exclude non-cash loan interest accretion related to PCI loans.

 

		Year Ended December 31,
		2016								2015
(Amounts in thousands)		Interest(1)				Average Yield/ Rate(1)				Interest(1)				Average Yield/ Rate(1)
Earning assets
Loans(2)		$	87,848				4.90	%		$	87,768				5.22	%
Accretion income			7,690								11,258
Less: cash accretion income			2,924								4,149
Non-cash accretion income			4,766								7,109
Loans, normalized(3)			83,082				4.63	%			80,659				4.80	%
Other earning assets			8,957				2.37	%			10,612				1.99	%
Total earning assets			92,039				4.24	%			91,271				4.12	%
Total interest-bearing liabilities			9,844				0.60	%			11,349				0.66	%
Net interest income, FTE(3)		$	82,195							$	79,922
Net interest rate spread, normalized(3)							3.64	%							3.46	%
Net interest margin, normalized(3)							3.79	%							3.61	%

 

(1)

FTE basis based on the federal statutory rate of 35%

(2)

Nonaccrual loans are included in average balances; however, no related interest income is recorded during the period of nonaccrual.

(3)

Normalized totals are non-GAAP financial measures that exclude non-cash loan interest accretion related to PCI loans.

 

 

Noninterest Income and Expense

 

CONDENSED QUARTERLY STATEMENTS OF INCOME (Unaudited)

 

		Three Months Ended																				Year Ended
		December 31,				September 30,				June 30,				March 31,				December 31,				December 31,
(Amounts in thousands)		2016				2016				2016				2016				2015				2016				2015
Noninterest income
Wealth management		$	681			$	653			$	810			$	684			$	744			$	2,828			$	2,975
Service charges on deposits			3,442				3,494				3,361				3,291				3,563				13,588				13,717
Other service charges and fees			2,014				2,024				2,054				2,010				2,058				8,102				8,045
Insurance commissions			59				1,592				1,600				2,191				1,563				5,442				6,899
Net impairment losses recognized in earnings			-				(4,635	)			(11	)			-				-				(4,646	)			-
Net gain (loss) on sale of securities			388				25				(79	)			1				(7	)			335				144
Net FDIC indemnification asset amortization			(1,618	)			(1,369	)			(1,328	)			(1,159	)			(1,200	)			(5,474	)			(6,379	)
Net gain on divestitures			619				3,065				-				-				-				3,684				-
Other operating income			653				1,046				623				885				762				3,207				4,129
Total noninterest income			6,238				5,895				7,030				7,903				7,483				27,066				29,530
Noninterest expense
Salaries and employee benefits			9,411				9,828				10,198				10,475				10,268				39,912				39,625
Occupancy expense			1,158				1,249				1,359				1,531				1,413				5,297				5,817
Furniture and equipment expense			1,070				1,066				1,109				1,096				1,345				4,341				5,199
Amortization of intangibles			265				316				277				278				281				1,136				1,118
FDIC premiums and assessments			274				363				372				374				332				1,383				1,513
FHLB debt prepayment fees			-				-				-				-				-				-				1,702
Merger, acquisition, and divestiture expense			55				226				410				39				-				730				86
Other operating expense			4,420				5,509				4,997				5,021				5,444				19,947				21,111
Total noninterest expense			16,653				18,557				18,722				18,814				19,083				72,746				76,171

 

Efficiency Ratio

 

EFFICIENCY RATIO CALCULATION (Unaudited)

 

		Three Months Ended																				Year Ended
		December 31,				September 30,				June 30,				March 31,				December 31,				December 31,
(Amounts in thousands)		2016				2016				2016				2016				2015				2016				2015
Noninterest expense, GAAP		$	16,653			$	18,557			$	18,722			$	18,814			$	19,083			$	72,746			$	76,171
Non-GAAP adjustments
Merger, acquisition, and divestiture expense			(55	)			(226	)			(410	)			(39	)			-				(730	)			(86	)
FHLB debt prepayment fees			-				-				-				-				-				-				(1,702	)
OREO expense and net loss			(184	)			(278	)			(247	)			(711	)			(475	)			(1,420	)			(2,438	)
Goodwill impairment			-				-				-				-				-				-				-
Other non-core items			8				(168	)			(30	)			(174	)			(61	)			(364	)			(259	)
Adjusted noninterest expense			16,422				17,885				18,035				17,890				18,547				70,232				71,686
Net interest income, GAAP			20,957				21,121				21,691				21,111				21,175				84,880				84,753
Noninterest income, GAAP			6,238				5,895				7,030				7,903				7,483				27,066				29,530
Non-GAAP adjustments
Tax equivalency adjustment			520				509				521				531				548				2,081				2,950
Net impairment losses			-				4,635				11				-				-				4,646				-
Net (gain) loss on sale of securities			(388	)			(25	)			79				(1	)			7				(335	)			(144	)
Net gain on divestitures			(619	)			(3,065	)			-				-				-				(3,684	)			-
Other non-core items			(40	)			(432	)			(30	)			(414	)			(30	)			(916	)			(1,263	)
Adjusted net interest and noninterest income			26,668				28,638				29,302				29,130				29,183				113,738				115,826
Non-GAAP efficiency ratio(1)			61.58	%			62.45	%			61.55	%			61.41	%			63.55	%			61.75	%			61.89	%
GAAP efficiency ratio			61.24	%			68.69	%			65.19	%			64.84	%			66.59	%			64.98	%			66.65	%

 

(1)

A non-GAAP financial measure computed by dividing adjusted noninterest expense by the sum of tax equivalent net interest income and adjusted noninterest income

 

 

Balance Sheet and Capital

 

CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited)

		December 31,				September 30,				June 30,				March 31,				December 31,
(Amounts in thousands, except per share data)		2016				2016				2016				2016				2015
Assets
Total cash and cash equivalents		$	76,307			$	65,929			$	44,301			$	39,587			$	51,787
Securities available for sale			165,579				220,856				322,699				338,469				366,173
Securities held to maturity			47,133				72,182				72,239				72,485				72,541
Loans held for investment, net of unearned income
Non-covered			1,795,954				1,774,547				1,733,398				1,685,891				1,623,506
Covered			56,994				61,837				68,585				76,538				83,035
Less allowance for loan losses			(17,948	)			(19,633	)			(21,099	)			(20,467	)			(20,233	)
Loans held for investment, net			1,835,000				1,816,751				1,780,884				1,741,962				1,686,308
FDIC indemnification asset			12,173				14,332				16,431				18,787				20,844
Premises and equipment, net			50,085				50,564				50,199				50,799				52,756
Other real estate owned, non-covered			5,109				4,052				4,187				5,313				4,873
Other real estate owned, covered			276				2,437				2,017				2,279				4,034
Interest receivable			5,553				5,498				6,115				5,968				6,007
Goodwill			95,779				101,776				100,486				100,486				100,486
Other intangible assets			7,207				7,964				4,688				4,965				5,243
Other assets			86,197				87,932				91,082				89,187				91,224
Total assets		$	2,386,398			$	2,450,273			$	2,495,328			$	2,470,287			$	2,462,276
Liabilities
Deposits
Noninterest-bearing		$	427,705			$	473,509			$	451,003			$	453,336			$	451,511
Interest-bearing			1,413,633				1,388,390				1,373,412				1,421,329				1,421,748
Total deposits			1,841,338				1,861,899				1,824,415				1,874,665				1,873,259
Interest, taxes, and other liabilities			27,290				26,599				25,553				24,576				26,630
Federal funds purchased			-				-				42,000				18,000				-
Securities sold under agreements to repurchase			98,005				118,532				113,392				134,661				138,614
FHLB borrowings			65,000				90,000				140,000				65,000				65,000
Other borrowings			15,708				15,707				15,756				15,756				15,756
Total liabilities			2,047,341				2,112,737				2,161,116				2,132,658				2,119,259
Stockholders' equity
Common stock			21,382				21,382				21,382				21,382				21,382
Additional paid-in capital			228,142				227,884				227,791				227,725				227,692
Retained earnings			170,377				166,689				163,030				159,223				155,647
Treasury stock, at cost			(78,833	)			(78,789	)			(74,974	)			(64,968	)			(56,457	)
Accumulated other comprehensive (loss) income			(2,011	)			370				(3,017	)			(5,733	)			(5,247	)
Total stockholders' equity			339,057				337,536				334,212				337,629				343,017
Total liabilities and stockholders' equity		$	2,386,398			$	2,450,273			$	2,495,328			$	2,470,287			$	2,462,276
Shares outstanding at period-end			16,994,208				16,988,972				17,155,322				17,631,011				18,098,141
Book value per common share(1)		$	19.95			$	19.87			$	19.48			$	19.15			$	18.95
Tangible book value per common share(2)			13.89				13.41				13.35				13.17				13.11

 

(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

 

 

Asset Quality

 

SELECTED CREDIT QUALITY INFORMATION (Unaudited)

 

		December 31,				September 30,				June 30,				March 31,				December 31,
(Amounts in thousands)		2016				2016				2016				2016				2015
Allowance for Loan Losses
Beginning balance		$	19,633			$	21,099			$	20,467			$	20,233			$	20,127
(Recovery of) provision for loan losses charged to operations			500				(1,154	)			722				1,187				434
(Recovery of) provision for loan losses recorded through the FDIC indemnification asset			-				-				(10	)			9				-
Charge-offs			(2,485	)			(772	)			(691	)			(1,228	)			(805	)
Recoveries			300				460				611				266				477
Net charge-offs			(2,185	)			(312	)			(80	)			(962	)			(328	)
Ending balance		$	17,948			$	19,633			$	21,099			$	20,467			$	20,233
Nonperforming Assets
Non-covered nonperforming assets
Nonaccrual loans		$	15,854			$	17,487			$	16,626			$	16,196			$	17,847
Accruing loans past due 90 days or more			-				62				64				243				-
Troubled debt restructurings ("TDRs")(1)			114				115				115				158				73
Total non-covered nonperforming loans			15,968				17,664				16,805				16,597				17,920
OREO			5,109				4,052				4,187				5,313				4,873
Total non-covered nonperforming assets		$	21,077			$	21,716			$	20,992			$	21,910			$	22,793
Covered nonperforming assets
Nonaccrual loans		$	608			$	688			$	680			$	1,955			$	647
Total covered nonperforming loans			608				688				680				1,955				647
OREO			276				2,437				2,017				2,279				4,034
Total covered nonperforming assets		$	884			$	3,125			$	2,697			$	4,234			$	4,681
Additional Information
Performing TDRs(2)		$	12,838			$	13,336			$	13,562			$	13,474			$	13,889
Total TDRs(3)			12,952				13,451				13,677				13,632				13,962
Non-covered ratios
Nonperforming loans to total loans			0.89	%			1.00	%			0.97	%			0.98	%			1.10	%
Nonperforming assets to total assets			0.90	%			0.91	%			0.87	%			0.92	%			0.96	%
Non-PCI allowance to nonperforming loans			112.32	%			111.08	%			125.48	%			123.17	%			112.61	%
Non-PCI allowance to total loans			1.00	%			1.11	%			1.22	%			1.21	%			1.24	%
Annualized net charge-offs to average loans			0.49	%			0.07	%			0.02	%			0.23	%			0.08	%
Total ratios
Nonperforming loans to total loans			0.89	%			1.00	%			0.97	%			1.05	%			1.09	%
Nonperforming assets to total assets			0.92	%			1.01	%			0.95	%			1.06	%			1.12	%
Allowance for loan losses to nonperforming loans			108.28	%			106.98	%			120.67	%			110.32	%			108.97	%
Allowance for loan losses to total loans			0.97	%			1.07	%			1.17	%			1.16	%			1.19	%
Annualized net charge-offs to average loans			0.47	%			0.07	%			0.02	%			0.22	%			0.08	%

 

(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