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

BLUEFIELD, Va., Oct. 24, 2017 (GLOBE NEWSWIRE) -- First Community Bancshares, Inc. (NASDAQ:FCBC) (www.firstcommunitybank.com) (the “Company”) today reported its unaudited results of operations and other financial information for the quarter and nine months ended September 30, 2017. The Company reported net income available to common shareholders of $7.65 million, or $0.45 per diluted common share for the quarter ended September 30, 2017, which represents a 21.62% increase in per share diluted earnings compared to the same quarter of 2016. Net income available to common shareholders was $20.27 million, or $1.19 per diluted common share for the nine months ended September 30, 2017, which represents an 11.21% increase in per share diluted earnings compared to the same period of 2016.

The Company also announced today that the Board of Directors declared a quarterly cash dividend to common shareholders of eighteen cents ($0.18) per common share. The quarterly dividend is payable to common shareholders of record on November 3, 2017, and is expected to be paid on or about November 17, 2017. The current year marks the 32^nd consecutive year of cash dividends paid to stockholders.

Third Quarter 2017 Highlights

Income Statement
- Net income available to common shareholders increased $1.27 million, or 19.88%, to $7.65 million compared to the same quarter of 2016.
- Return on average assets increased 26 basis points to 1.29% and return on average common equity increased 103 basis points to 8.61% compared to the same quarter of 2016.
- The non-GAAP efficiency ratio improved to 54.68% compared to 62.45% in the same quarter of 2016.
- Diluted earnings per share increased $0.08, or 21.62%, to $0.45 compared to the same quarter of 2016.
- Net interest margin increased 30 basis points to 4.25%, and normalized net interest margin increased 23 basis points to 4.00% compared to the same quarter of 2016.
Balance Sheet
- Net charge-offs decreased $456 thousand, or 33.68%, to $898 thousand for the nine months ended September 30, 2017, compared to the same period of 2016.
- Book value per common share increased $0.81 to $20.76 compared to December 31, 2016.
- Tangible book value per common share increased $0.85 to $14.74 compared to December 31, 2016.
- The Company and its subsidiary bank both significantly exceed regulatory “well capitalized” targets as of September 30, 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.

About First Community Bancshares, Inc.

First Community Bancshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 44 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of September 30, 2017. First Community Bank provides insurance services through First Community Insurance Services, which operates 6 in-branch locations in Virginia and West Virginia and offers wealth management and investment advice through its Trust Division and First Community Wealth Management, which collectively managed $936 million in combined assets as of September 30, 2017. The Company reported consolidated assets of $2.37 billion as of September 30, 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.

Financial Performance

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,
(Amounts in thousands, except share and per share data)	2017			2017			2017			2016			2016			2017			2016
Interest income
Interest and fees on loans	$	22,694		$	22,914		$	21,827		$	21,956		$	21,952		$	67,435		$	65,762
Interest on securities		1,080			1,170			1,206			1,362			1,643			3,456			5,491
Interest on deposits in banks		275			221			159			98			26			655			55
Total interest income		24,049			24,305			23,192			23,416			23,621			71,546			71,308
Interest expense
Interest on deposits		1,275			1,233			1,166			1,145			1,133			3,674			3,334
Interest on borrowings		724			778			885			1,314			1,367			2,387			4,051
Total interest expense		1,999			2,011			2,051			2,459			2,500			6,061			7,385
Net interest income		22,050			22,294			21,141			20,957			21,121			65,485			63,923
Provision for (recovery of) loan losses		730			934			492			500			(1,154	)		2,156			755
Net interest income after
provision (recovery)		21,320			21,360			20,649			20,457			22,275			63,329			63,168
Total noninterest income		7,135			5,475			5,691			6,238			5,895			18,301			20,828
Total noninterest expense		16,909			17,458			17,083			16,653			18,557			51,450			56,093
Income before income taxes		11,546			9,377			9,257			10,042			9,613			30,180			27,903
Income tax expense		3,894			2,959			3,055			3,638			3,230			9,908			9,181
Net income available to common shareholders	$	7,652		$	6,418		$	6,202		$	6,404		$	6,383		$	20,272		$	18,722

Earnings per common share
Basic	$	0.45		$	0.38		$	0.36		$	0.38		$	0.37		$	1.19		$	1.07
Diluted		0.45			0.38			0.36			0.38			0.37			1.19			1.07
Cash dividends per common share		0.18			0.16			0.16			0.16			0.16			0.50			0.44
Weighted average shares outstanding
Basic		17,005,654			16,998,125			16,998,125			16,891,010			17,031,074			17,005,350			17,433,406
Diluted		17,082,729			17,072,174			17,072,174			17,043,869			17,083,526			17,076,958			17,475,211
Performance ratios
Return on average assets		1.29	%		1.08	%		1.06	%		1.05	%		1.03	%		1.14	%		1.01	%
Return on average common equity		8.61	%		7.41	%		7.35	%		7.49	%		7.58	%		7.80	%		7.40	%
Return on average tangible common equity⁽¹⁾		12.13	%		10.51	%		10.50	%		10.75	%		11.07	%		11.06	%		10.76	%


(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															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,
	2017			2017			2017			2016			2016			2017			2016
(Amounts in thousands, except per share data)
Net income, GAAP	$	7,652		$	6,418		$	6,202		$	6,404		$	6,383		$	20,272		$	18,722
Non-GAAP adjustments:
Net gain on divestitures		-			-			-			(619	)		(3,065	)		-			(3,065	)
Allowance reversal for sold loans		-			-			-			-			(1,354	)		-			(1,354	)
Merger, acquisition, and divestiture expense		-			-			-			55			226			-			675
Net loss (gain) on sale of securities		-			657			-			(388	)		(25	)		657			53
Net impairment losses		-			-			-			-			4,635			-			4,646
Other non-core items		34			(174	)		(18	)		(48	)		(264	)		(158	)		(504	)
Total adjustments to core earnings		34			483			(18	)		(1,000	)		153			499			451
Tax effect		12			345			(7	)		(708	)		56			350			166
Core earnings, non-GAAP⁽¹⁾	$	7,674		$	6,556		$	6,191		$	6,112		$	6,480		$	20,421		$	19,007

Core diluted earnings per common share	$	0.45		$	0.38		$	0.36		$	0.36		$	0.38		$	1.19		$	1.09
Performance ratios
Core return on average assets		1.29	%		1.11	%		1.06	%		1.01	%		1.05	%		1.15	%		1.03	%
Core return on average common equity		8.63	%		7.57	%		7.33	%		7.15	%		7.70	%		7.86	%		7.51	%
Core return on average tangible common equity⁽²⁾		12.16	%		10.74	%		10.48	%		10.26	%		11.24	%		11.14	%		10.92	%


(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 September 30,
	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⁾	$	1,843,612	$	22,765	4.90	%	$	1,820,899	$	21,974	4.80	%
Securities available for sale		157,038		1,373	3.47	%		266,162		1,941	2.90	%
Securities held to maturity		25,199		106	1.67	%		72,210		189	1.04	%
Interest-bearing deposits		73,802		275	1.48	%		19,025		26	0.54	%
Total earning assets		2,099,651		24,519	4.63	%		2,178,296		24,130	4.41	%
Other assets		258,763						282,310
Total assets	$	2,358,414					$	2,460,606

Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits	$	384,594	$	89	0.09	%	$	337,893	$	60	0.07	%
Savings deposits		518,355		43	0.03	%		523,503		62	0.05	%
Time deposits		509,251		1,143	0.89	%		529,344		1,011	0.76	%
Total interest-bearing deposits		1,412,200		1,275	0.36	%		1,390,740		1,133	0.32	%
Borrowings
Federal funds purchased		-		-	-			3,696		6	0.65	%
Retail repurchase agreements		58,194		10	0.07	%		64,385		12	0.07	%
Wholesale repurchase agreements		25,000		203	3.22	%		50,000		473	3.76	%
FHLB advances and other borrowings		50,000		511	4.05	%		133,838		876	2.60	%
Total borrowings		133,194		724	2.16	%		251,919		1,367	2.16	%
Total interest-bearing liabilities		1,545,394		1,999	0.51	%		1,642,659		2,500	0.61	%
Noninterest-bearing demand deposits		440,227						462,588
Other liabilities		20,101						20,462
Total liabilities		2,005,722						2,125,709
Stockholders' equity		352,692						334,897
Total liabilities and stockholders' equity	$	2,358,414					$	2,460,606
Net interest income, FTE			$	22,520					$	21,630
Net interest rate spread					4.12	%					3.80	%
Net interest margin					4.25	%					3.95	%


(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)

	Nine Months Ended September 30,
	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⁾	$	1,841,981	$	67,645	4.91	%	$	1,775,744	$	65,836	4.95	%
Securities available for sale		162,198		4,312	3.55	%		318,891		6,403	2.68	%
Securities held to maturity		35,578		382	1.44	%		72,350		575	1.06	%
Interest-bearing deposits		66,069		655	1.33	%		13,288		55	0.55	%
Total earning assets		2,105,826		72,994	4.63	%		2,180,273		72,869	4.47	%
Other assets		264,333						287,784
Total assets	$	2,370,159					$	2,468,057

Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits	$	384,265	$	301	0.10	%	$	339,920	$	177	0.07	%
Savings deposits		523,219		114	0.03	%		533,799		191	0.05	%
Time deposits		513,072		3,259	0.85	%		527,056		2,966	0.75	%
Total interest-bearing deposits		1,420,556		3,674	0.35	%		1,400,775		3,334	0.32	%
Borrowings
Federal funds purchased		2		-	0.00	%		5,393		26	0.64	%
Retail repurchase agreements		61,951		31	0.07	%		69,347		37	0.07	%
Wholesale repurchase agreements		25,000		602	3.22	%		50,000		1,410	3.77	%
FHLB advances and other borrowings		57,357		1,754	4.09	%		124,803		2,578	2.76	%
Total borrowings		144,310		2,387	2.21	%		249,543		4,051	2.17	%
Total interest-bearing liabilities		1,564,866		6,061	0.52	%		1,650,318		7,385	0.60	%
Noninterest-bearing demand deposits		435,825						457,250
Other liabilities		21,905						22,581
Total liabilities		2,022,596						2,130,149
Stockholders' equity		347,563						337,908
Total liabilities and stockholders' equity	$	2,370,159					$	2,468,057
Net interest income, FTE			$	66,933					$	65,484
Net interest rate spread					4.12	%					3.87	%
Net interest margin					4.25	%					4.01	%


(1) Fully taxable equivalent ("FTE") basis based on the federal statutory rate of 35%
(2) Nonaccrual loans are included in average balances; however, no related interest income is recorded during the period of nonaccrual.

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

			Three Months Ended September 30,
			2017				2016
(Amounts in thousands)			Interest⁽¹⁾		Average Yield/ Rate⁽¹⁾		Interest⁽¹⁾		Average Yield/ Rate⁽¹⁾
Earning assets
Loans⁽²⁾			$	22,765	4.90	%	$	21,974	4.80	%
Accretion income				1,925				1,683
Less: cash accretion income				548				699
Non-cash accretion income				1,377				984
Loans, normalized⁽³⁾				21,388	4.60	%		20,990	4.59	%
Other earning assets				1,754	2.72	%		2,156	2.40	%
Total earning assets				23,142	4.37	%		23,146	4.23	%
Total interest-bearing liabilities				1,999	0.51	%		2,500	0.61	%
Net interest income, FTE⁽³⁾			$	21,143			$	20,646
Net interest rate spread, normalized⁽³⁾					3.86	%			3.62	%
Net interest margin, normalized⁽³⁾					4.00	%			3.77	%


(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.

			Nine Months Ended September 30,
				2017				2016
(Amounts in thousands)			Interest⁽¹⁾		Average Yield/ Rate⁽¹⁾		Interest⁽¹⁾		Average Yield/ Rate⁽¹⁾
Earning assets
Loans⁽²⁾			$	67,645	4.91	%	$	65,836	4.95	%
Accretion income				6,243				6,183
Less: cash accretion income				1,986				2,290
Non-cash accretion income				4,257				3,893
Loans, normalized⁽³⁾				63,388	4.60	%		61,943	4.66	%
Other earning assets				5,349	2.71	%		7,033	2.32	%
Total earning assets				68,737	4.36	%		68,976	4.23	%
Total interest-bearing liabilities				6,061	0.52	%		7,385	0.60	%
Net interest income, FTE⁽³⁾			$	62,676			$	61,591
Net interest rate spread, normalized⁽³⁾					3.84	%			3.63	%
Net interest margin, normalized⁽³⁾					3.98	%			3.77	%


(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															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,
(Amounts in thousands)	2017			2017			2017			2016			2016			2017			2016
Noninterest income
Wealth management	$	758		$	791		$	790		$	681		$	653		$	2,339		$	2,147
Service charges on deposits		3,605			3,360			3,113			3,442			3,494			10,078			10,146
Other service charges and fees		2,141			2,168			2,078			2,014			2,024			6,387			6,088
Insurance commissions		306			325			373			59			1,592			1,004			5,383
Net impairment losses recognized in earnings		-			-			-			-			(4,635	)		-			(4,646	)
Net gain (loss) on sale of securities		-			(657	)		-			388			25			(657	)		(53	)
Net FDIC indemnification asset amortization		(268	)		(1,586	)		(1,332	)		(1,618	)		(1,369	)		(3,186	)		(3,856	)
Net gain on divestitures		-			-			-			619			3,065			-			3,065
Other operating income		593			1,074			669			653			1,046			2,336			2,554
Total noninterest income		7,135			5,475			5,691			6,238			5,895			18,301			20,828
Noninterest expense
Salaries and employee benefits		9,137			9,157			8,884			9,411			9,828			27,178			30,501
Occupancy expense		1,082			1,341			1,248			1,158			1,249			3,671			4,139
Furniture and equipment expense		1,133			1,087			1,091			1,070			1,066			3,311			3,271
Amortization of intangibles		266			263			261			265			316			790			871
FDIC premiums and assessments		227			227			244			274			363			698			1,109
Merger, acquisition, and divestiture expense		-			-			-			55			226			-			675
Other operating expense		5,064			5,383			5,355			4,420			5,509			15,802			15,527
Total noninterest expense		16,909			17,458			17,083			16,653			18,557			51,450			56,093

Efficiency Ratio

EFFICIENCY RATIO CALCULATION (Unaudited)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,
	2017			2017			2017			2016			2016			2017			2016
(Amounts in thousands)
Noninterest expense, GAAP	$	16,909		$	17,458		$	17,083		$	16,653		$	18,557		$	51,450		$	56,093
Non-GAAP adjustments
Merger, acquisition, and divestiture expense		-			-			-			(55	)		(226	)		-			(675	)
OREO expense and net loss		(647	)		(213	)		(328	)		(184	)		(278	)		(1,188	)		(1,236	)
Other non-core items		(64	)		(327	)		-			8			(168	)		(391	)		(372	)
Adjusted noninterest expense		16,198			16,918			16,755			16,422			17,885			49,871			53,810

Net interest income, GAAP		22,050			22,294			21,141			20,957			21,121			65,485			63,923
Noninterest income, GAAP		7,135			5,475			5,691			6,238			5,895			18,301			20,828
Non-GAAP adjustments
Tax equivalency adjustment		470			481			497			520			509			1,448			1,561
Net impairment losses		-			-			-			-			4,635			-			4,646
Net loss (gain) on sale of securities		-			657			-			(388	)		(25	)		657			53
Net gain on divestitures		-			-			-			(619	)		(3,065	)		-			(3,065	)
Other non-core items		(30	)		(501	)		(18	)		(40	)		(432	)		(549	)		(876	)
Adjusted net interest and noninterest income		29,625			28,406			27,311			26,668			28,638			85,342			87,070

Non-GAAP efficiency ratio⁽¹⁾		54.68	%		59.56	%		61.35	%		61.58	%		62.45	%		58.44	%		61.80	%
GAAP efficiency ratio		57.94	%		62.87	%		63.67	%		61.24	%		68.69	%		61.41	%		66.19	%


(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)

	September 30,			June 30,			March 31,			December 31,			September 30,
(Amounts in thousands, except per share data)	2017			2017			2017			2016			2016
Assets
Total cash and cash equivalents	$	105,119		$	106,799		$	152,851		$	76,307		$	65,929
Securities available for sale		174,424			157,854			158,685			165,579			220,856
Securities held to maturity		25,182			25,216			47,092			47,133			72,182
Loans held for investment, net of unearned income
Non-covered		1,805,429			1,796,263			1,784,371			1,795,954			1,774,547
Covered		32,292			45,845			51,412			56,994			61,837
Less allowance for loan losses		(19,206	)		(18,886	)		(18,458	)		(17,948	)		(19,633	)
Loans held for investment, net		1,818,515			1,823,222			1,817,325			1,835,000			1,816,751
FDIC indemnification asset		7,465			8,159			9,931			12,173			14,332
Premises and equipment, net		48,949			49,598			50,057			50,085			50,564
Other real estate owned, non-covered		3,543			3,914			4,477			5,109			4,052
Other real estate owned, covered		54			124			241			276			2,437
Interest receivable		5,156			5,072			5,059			5,553			5,498
Goodwill		95,779			95,779			95,779			95,779			101,776
Other intangible assets		6,417			6,683			6,947			7,207			7,964
Other assets		84,177			84,183			82,069			86,197			87,932
Total assets	$	2,374,780		$	2,366,603		$	2,430,513		$	2,386,398		$	2,450,273

Liabilities
Deposits
Noninterest-bearing	$	452,940		$	443,800		$	467,677		$	427,705		$	473,509
Interest-bearing		1,410,880			1,413,574			1,438,917			1,413,633			1,388,390
Total deposits		1,863,820			1,857,374			1,906,594			1,841,338			1,861,899
Securities sold under agreements to repurchase		83,783			86,011			90,653			98,005			118,532
FHLB borrowings		50,000			50,000			65,000			65,000			90,000
Other borrowings		-			-			244			15,708			15,707
Interest, taxes, and other liabilities		24,540			24,443			24,618			27,290			26,599
Total liabilities		2,022,143			2,017,828			2,087,109			2,047,341			2,112,737

Stockholders' equity
Common stock		21,382			21,382			21,382			21,382			21,382
Additional paid-in capital		228,510			228,326			228,176			228,142			227,884
Retained earnings		182,145			177,556			173,860			170,377			166,689
Treasury stock, at cost		(79,333	)		(78,488	)		(78,533	)		(78,833	)		(78,789	)
Accumulated other comprehensive (loss) income		(67	)		(1	)		(1,481	)		(2,011	)		370
Total stockholders' equity		352,637			348,775			343,404			339,057			337,536
Total liabilities and stockholders' equity	$	2,374,780		$	2,366,603		$	2,430,513		$	2,386,398		$	2,450,273

Shares outstanding at period-end		16,986,502			17,017,071			17,013,185			16,994,208			16,988,972
Book value per common share⁽¹⁾	$	20.76		$	20.50		$	20.18		$	19.95		$	19.87
Tangible book value per common share⁽²⁾		14.74			14.47			14.15			13.89			13.41


(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)

	September 30,			June 30,			March 31,			December 31,			September 30,
(Amounts in thousands)	2017			2017			2017			2016			2016
Allowance for Loan Losses
Beginning balance	$	18,886		$	18,458		$	17,948		$	19,633		$	21,099
Provision for (recovery of) loan losses charged
to operations		730			934			492			500			(1,154	)
Charge-offs		(717	)		(902	)		(357	)		(2,485	)		(772	)
Recoveries		307			396			375			300			460
Net (charge-offs) recoveries		(410	)		(506	)		18			(2,185	)		(312	)
Ending balance	$	19,206		$	18,886		$	18,458		$	17,948		$	19,633

Nonperforming Assets
Non-covered nonperforming assets
Nonaccrual loans	$	18,942		$	20,146		$	18,537		$	15,854		$	17,487
Accruing loans past due 90 days or more		-			-			20			-			62
Troubled debt restructurings ("TDRs")⁽¹⁾		141			100			-			114			115
Total non-covered nonperforming loans		19,083			20,246			18,557			15,968			17,664
OREO		3,543			3,914			4,477			5,109			4,052
Total non-covered nonperforming assets	$	22,626		$	24,160		$	23,034		$	21,077		$	21,716

Covered nonperforming assets
Nonaccrual loans	$	420		$	446		$	918		$	608		$	688
Total covered nonperforming loans		420			446			918			608			688
OREO		54			124			241			276			2,437
Total covered nonperforming assets	$	474		$	570		$	1,159		$	884		$	3,125

Additional Information
Performing TDRs⁽²⁾	$	8,101		$	8,485		$	8,593		$	12,838		$	13,336
Total TDRs⁽³⁾		8,242			8,585			8,593			12,952			13,451

Non-covered ratios
Nonperforming loans to total loans		1.06	%		1.13	%		1.04	%		0.89	%		1.00	%
Nonperforming assets to total assets		0.97	%		1.04	%		0.97	%		0.90	%		0.91	%
Non-PCI allowance to nonperforming loans		100.64	%		93.24	%		99.40	%		112.32	%		111.08	%
Non-PCI allowance to total loans		1.06	%		1.05	%		1.03	%		1.00	%		1.11	%
Annualized net charge-offs to average loans		0.09	%		0.11	%		0.00	%		0.49	%		0.07	%

Total ratios
Nonperforming loans to total loans		1.06	%		1.12	%		1.06	%		0.89	%		1.00	%
Nonperforming assets to total assets		0.97	%		1.04	%		1.00	%		0.92	%		1.01	%
Allowance for loan losses to nonperforming loans		98.48	%		91.27	%		94.78	%		108.28	%		106.98	%
Allowance for loan losses to total loans		1.05	%		1.03	%		1.01	%		0.97	%		1.07	%
Annualized net charge-offs to average loans		0.09	%		0.11	%		0.00	%		0.47	%		0.07	%


(1) Accruing TDRs restructured within the past six months or nonperforming
(2) Accruing TDRs with six months or more of satisfactory payment performance
(3) Accruing total TDRs

FOR MORE INFORMATION, CONTACT:
David D. Brown
(276) 326-9000

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

Distribution channels: Banking, Finance & Investment Industry

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