First Com­mu­nity Bancshares 3Q earn­ings up

The Pak Banker - - Front Page -

BLUE­FIELD, VA

First Com­mu­nity Bancshares to­day re­ported net in­come for the quar­ter and nine months ended Septem­ber 30, 2012, of $10.06 mil­lion and $20.14 mil­lion, re­spec­tively.

Net in­come avail­able to com­mon share­hold­ers to­taled $9.84 mil­lion, or $0.47 per di­luted com­mon share, for the quar­ter ended Septem­ber 30, 2012. Net in­come avail­able to com­mon share­hold­ers to­taled $19.35 mil­lion, or $1.00 per di­luted com­mon share, for the nine months ended Septem­ber 30, 2012.

Net in­come for the quar­ter and nine months ended Septem­ber 30, 2012, was im­pacted by $645 thou­sand and $4.23 mil­lion, re­spec­tively, in merger re­lated ex­penses. Ex­clud­ing non­re­cur­ring in­come and ex­pense items, core earn­ings for the quar­ter and nine months ended Septem­ber 30, 2012, to­taled $9.42 mil­lion and $21.70 mil­lion, re­spec­tively.

Pres­i­dent and CEO John M. Men­dez said we are very pleased with the re­sults of third quar­ter op­er­a­tions. Sig­nif­i­cant im­prove­ments were seen in a num­ber of ar­eas.

Record quar­terly earn­ings in­clude the im­pact of a fa­vor­able con­ver­sion ad­just­ment; how­ever, core earn­ings like­wise set new records.

Re­sults from our two sec­ond quar­ter ac­qui­si­tions have ex­ceeded our ex­pec­ta­tions and are con­tribut­ing well ahead of plan. Per­for­mance in our legacy mar­kets re­mains solid de­spite the con­tin­ued low rate en­vi­ron­ment.

We re­main pleased with our per­for­mance on all lev­els in­clud­ing our credit re­sults and we look for­ward to con­tin­ued ex­pan­sion of our lever­age po­si­tion and re­turns in the coming pe­ri­ods.

Core earn­ings were a record $9.42 mil­lion, an in­crease of $4.04 mil­lion, or 75.16%, com­pared with the third quar­ter of 2011. Core re­turn on av­er­age as­sets was 1.35% and core re­turn on av­er­age tan­gi­ble com­mon eq­uity was 16.65% for the third quar­ter of 2012 which are at the high­est level since 2007.

Third quar­ter 2012 core di­luted earn­ings per share of $0.44 are the high­est since 2008. The tax equiv­a­lent net in­ter­est mar­gin in­creased 71 ba­sis points to 4.48% for the third quar­ter of 2012 com­pared with the third quar­ter of 2011.

Net in­ter­est in­come in­creased $8.73 mil­lion, or 49.20%, to $26.46 mil­lion for the third quar­ter of 2012 com- pared with the third quar­ter of 2011. The tax equiv­a­lent net in­ter­est mar­gin in­creased 71 ba­sis points to 4.48% for the third quar­ter of 2012 com­pared with 3.77% for the third quar­ter of 2011.

To­tal in­ter­est in­come in­creased $8.49 mil­lion, or 36.82%, to $31.54 mil­lion for the third quar­ter of 2012 com­pared with the third quar­ter of 2011. The in­crease re­flects the in­creases in loan port­fo­lio bal­ances from the ac­qui­si­tions of Peo­ples Bank of Vir­ginia and Wac­ca­maw Bank dur­ing the sec­ond quar­ter of 2012, as well as the as­so­ci­ated loan in­ter­est ac­cre­tion stem­ming from those trans­ac­tions.

To­tal ac­cre­tion for the third quar­ter ap­prox­i­mated $3.32 mil­lion re­lated to Peo­ples and Wac­ca­maw. The tax equiv­a­lent yield on loans in­creased to 6.29% while the av­er­age loan bal­ance in­creased $411.35 mil­lion, or 29.83%, to $1.79 bil­lion for the third quar­ter of 2012 com­pared with the third quar­ter of 2011. Be­fore the pur­chase ac­count­ing ac­cre­tion in the Peo­ples and Wac­ca­maw loan port­fo­lios, the yield on loans and net in­ter­est mar­gin for the cur­rent quar­ter were 5.55% and 3.94%, re­spec­tively.

To­tal in­ter­est ex­pense de­creased $239 thou­sand, or 4.50%, to $5.08 mil­lion for the third quar­ter of 2012 com­pared with the third quar­ter of 2011. De­posit costs de­creased $395 thou­sand, or 13.18%, to $2.60 mil­lion for the third quar­ter of 2012 com­pared with the third quar­ter of 2011, which was pri­mar­ily due to a 28 ba­sis point de­crease in the av­er­age rate paid on in­ter­est­bear­ing de­posits. Bor­row­ing costs in­creased $156 thou­sand, or 6.73%, to $2.47 mil­lion for the third quar­ter of 2012 com- pared with the third quar­ter of 2011. The av­er­age rate paid on in­ter­est- bear­ing li­a­bil­i­ties de­creased 29 ba­sis points to 0.98% for the third quar­ter of 2012 com­pared with the third quar­ter of 2011.

The av­er­age bal­ance of in­ter­est- bear­ing li­a­bil­i­ties in­creased $405.26 mil­lion, or 24.43%, to $2.06 bil­lion for the third quar­ter of 2012 com­pared with the third quar­ter of 2011, which in­cluded a $376.05 mil­lion in­crease in av­er­age in­ter­est- bear­ing de­posits and a $29.21 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.

The pro­vi­sion for loan losses for the third quar­ter of 2012 was $1.92 mil­lion, a slight de­crease from same pe­riod in prior year.

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