First Community Bancshares, Inc. Announces Third Quarter 2016 Results and Quarterly Dividend

| Source: First Community Bancshares, Inc. First Community Bancshares, Inc.

BLUEFIELD, Va., Oct. 25, 2016 (GLOBE NEWSWIRE) -- 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 nine months ended September 30, 2016. The Company reported net income available to common shareholders of $6.38 million, or $0.37 per diluted common share for the quarter ended September 30, 2016, which represents an 8.82% increase in per share earnings compared to the same quarter of 2015. Net income available to common shareholders was $18.72 million, or $1.07 per diluted common share for the nine months ended September 30, 2016, which represents a 10.31% increase in per share earnings compared to the same period of 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. The quarterly dividend is payable to common shareholders of record on November 4, 2016, and is expected to be paid on or about November 18, 2016. The current year marks the 31st consecutive year of cash dividends paid to stockholders.

On July 15, 2016, the Company completed the previously announced branch exchange with First Bank, North Carolina, pursuant to which First Community Bank (the “Bank”) sold six branches in the Winston-Salem and Mooresville areas of North Carolina and acquired seven branches in Southwestern Virginia. At closing, First Bank assumed total assets of $158.25 million, including total loans of $154.03 million, and total liabilities of $111.20 million, including total deposits of $110.99 million. The Company received a deposit premium from First Bank of $4.07 million and recorded a net gain of $3.07 million in connection with the divestiture transaction. At closing, the acquired branches added total assets of $156.88 million, including total loans of $151.04 million, and total liabilities of $134.41 million, including total deposits of $134.26 million. The Company paid a deposit premium to First Bank of $3.84 million and recorded goodwill of $2.45 million in connection with the branch acquisitions.

On October 1, 2016, the Company sold two North Carolina offices operating under the Greenpoint Insurance Group, Inc. trade name 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.

Third Quarter 2016 Highlights

  • Income Statement
    • Net income available to common shareholders increased $124 thousand, or 1.98%, to $6.38 million compared to the same quarter of 2015.
    • Diluted earnings per share increased $0.03, or 8.82%, to $0.37 compared to the same quarter of 2015.
    • Core, non-GAAP diluted earnings per common share increased $0.04 to $0.38 compared to the same quarter of 2015.
    • The net interest margin decreased 10 basis points to 3.95%, while the normalized net interest margin increased 9 basis points to 3.77% compared to the same quarter of 2015.
  • Balance Sheet
    • The non-covered loan portfolio increased $151.04 million, or 9.30%, compared to December 31, 2015.
    • Book value per common share increased $0.92 to $19.87 compared to December 31, 2015.
    • The Company repurchased 171,225 common shares during the quarter resulting in 1,152,776 shares repurchased year-to-date. The Company has repurchased 3.93 million shares since September 30, 2013.
    • The Company and its subsidiary bank both significantly exceed regulatory “well capitalized” targets as of September 30, 2016. 
  • Asset Quality
    • Annualized net charge-offs were only 0.07% of average loans compared to 0.10% for the same period of the prior year.
    • Total nonperforming assets decreased $2.63 million compared to December 31, 2015, and decreased $2.32 million compared to September 30, 2015.
    • Total non-covered nonperforming assets decreased $1.08 million compared to December 31, 2015, and decreased $549 thousand compared to September 30, 2015.
    • 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 21 basis points to 1.51% as of September 30, 2016, from 1.72% as of December 31, 2015.
    • The Company recognized a net loan loss recovery of $1.15 million as a result of the reversal of $1.35 million in loan loss provisions related to loans sold to First Bank.

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 48 branch banking locations throughout Virginia, West Virginia, North Carolina, and Tennessee as of September 30, 2016. First Community Bank offers wealth management and investment services through its wholly-owned subsidiary First Community Wealth Management and the Bank’s Trust Division, which collectively managed $767 million in combined assets as of September 30, 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 $2.45 billion as of September 30, 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 Nine Months Ended 
   September 30, June 30, March 31, December 31, September 30, September 30, 
(Amounts in thousands, except share and per share data) 2016   2016   2016   2015   2015   2016   2015  
Interest income              
 Interest and fees on loans$21,952  $22,237  $21,573  $21,633  $22,259  $65,762  $65,999  
 Interest on securities 1,643   1,891   1,957   2,023   2,056   5,491   6,180  
 Interest on deposits in banks 26   9   20   21   33   55   246  
Total interest income 23,621   24,137   23,550    23,677   24,348   71,308   72,425  
Interest expense              
 Interest on deposits 1,133   1,087   1,114   1,202   1,384   3,334   4,676  
 Interest on borrowings 1,367   1,359   1,325   1,300   1,295   4,051   4,171  
Total interest expense 2,500   2,446   2,439    2,502   2,679   7,385   8,847  
Net interest income 21,121   21,691   21,111    21,175   21,669   63,923   63,578  
(Recovery of) provision for loan losses (1,154)  722   1,187   434   381   755   1,757  
Net interest income after               
 (recovery) provision 22,275   20,969   19,924    20,741   21,288   63,168   61,821  
Total noninterest income 5,895   7,030   7,903   7,483   7,074   20,828   22,047  
Total noninterest expense 18,557   18,722   18,814   19,083   19,019   56,093   57,088  
Income before income taxes 9,613   9,277   9,013    9,141   9,343   27,903   26,780  
Income tax expense 3,230   3,022   2,929   2,993   3,084   9,181   8,388  
Net income  6,383   6,255   6,084    6,148   6,259 $ 18,722   18,392  
Dividends on preferred stock -   -   -   -   -   -   105  
Net income available to common shareholders$6,383 $$6,255 $$6,084 $ $6,148 $$6,259 $$18,722  $18,287  
                 
Earnings per common share              
 Basic$0.37  $0.36  $0.34  $0.34  $0.34  $1.07  $0.98  
 Diluted 0.37   0.36   0.34   0.34   0.34   1.07   0.97  
Cash dividends per common share 0.16   0.14   0.14   0.14   0.14   0.44   0.40  
Weighted average shares outstanding              
 Basic 17,031,074   17,414,320   17,859,197   18,193,824   18,470,348   17,433,406   18,644,679  
 Diluted 17,083,526   17,462,845   17,892,531   18,226,719   18,500,975   17,475,211   18,895,909  
Performance ratios              
 Return on average assets 1.03%  1.02%  0.99%  0.99%  1.00%  1.01%  0.96% 
 Return on average common equity 7.58%  7.47%  7.15%  7.05%  7.18%  7.40%  7.07% 
 Return on average tangible common equity(1) 11.07%  10.88%  10.34%  10.17%  10.38%  10.76%  10.23% 
                 
(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,
    2016   2016   2016   2015   2015   2016   2015 
(Amounts in thousands, except per share data)              
Net income, GAAP  $  6,383  $  6,255  $  6,084  $  6,148  $  6,259  $  18,722  $  18,392 
Non-GAAP adjustments:              
 Net gain on divestiture    (3,065)    -     -     -     -     (3,065)    - 
 Allowance reversal for sold loans (1,354)     -     -     -     -    (1,354)     - 
 Merger, acquisition, and divestiture expense   226     410     39     -     -     675     86 
 Net (gain) loss on sale of securities   (25)    79     (1)    7     39     53     (151)
 FHLB debt prepayment fees   -     -     -     -     -     -     1,702 
 Net impairment losses    4,635     11     -     -     -     4,646     - 
 Other non-core items   (264)    -     (240)    31     (75)    (504)    (1,035)
Total adjustments to core earnings  153     500     (202)    38     (36)  451     602 
Tax effect   56     184     (74)    14     (13)  166     646 
Core earnings, non-GAAP(1) $ 6,480  $  6,571  $  5,956  $  6,172  $  6,236  $19,007  $  18,348 
                
Core diluted earnings per common share $  0.38  $  0.38  $  0.33  $  0.34  $  0.34  $  1.09  $  0.97 
Performance ratios               
 Core return on average assets 1.05%  1.07%  0.97%  0.99%  1.00%  1.03%  0.97%
 Core return on average common equity 7.70%  7.85%  7.00%  7.08%  7.16%  7.51%  7.09%
 Core return on average tangible common equity(2) 11.24%  11.43%  10.12%  10.21%  10.34%  10.92%  10.26%
                
 (1) A non-GAAP financial measure that 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, 
    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)$  1,820,899  $  21,974   4.80% $  1,675,787  $  22,291   5.28% 
 Securities available for sale   266,162     1,941   2.90%    382,099     2,394   2.49% 
 Securities held to maturity   72,210     189   1.04%    72,624     195   1.07% 
 Interest-bearing deposits   19,025     26   0.54%    48,750     33   0.27% 
Total earning assets   2,178,296     24,130   4.41%    2,179,260     24,913   4.53% 
Other assets    282,310         305,331      
Total assets$  2,460,606      $  2,484,591      
               
Liabilities and stockholders' equity            
Interest-bearing deposits            
 Demand deposits $  337,893  $  60   0.07% $  335,831  $  52   0.06% 
 Savings deposits    523,503     62   0.05%    532,445     83   0.06% 
 Time deposits   529,344     1,011   0.76%    613,598     1,249   0.81% 
Total interest-bearing deposits   1,390,740     1,133   0.32%    1,481,874     1,384   0.37% 
Borrowings            
 Federal funds purchased   3,696     6   0.65%    7     -   -  
 Retail repurchase agreements   64,385     12   0.07%    72,740     16   0.09% 
 Wholesale repurchase agreements   50,000     473   3.76%    50,000     473   3.75% 
 FHLB advances and other borrowings   133,838     876   2.60%    80,985     806   3.95% 
Total borrowings   251,919     1,367   2.16%    203,732     1,295   2.52% 
Total interest-bearing liabilities   1,642,659     2,500   0.61%    1,685,606     2,679   0.63% 
Noninterest-bearing demand deposits   462,588         433,164      
Other liabilities   20,462         20,028      
Total liabilities   2,125,709         2,138,798      
Stockholders' equity   334,897         345,793      
Total liabilities and stockholders' equity$  2,460,606      $  2,484,591      
Net interest income, FTE  $  21,630      $  22,234    
Net interest rate spread     3.80%      3.90% 
Net interest margin     3.95%      4.05% 
               
 (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, 
    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)$  1,775,744  $  65,836   4.95% $  1,675,118  $  66,107   5.28% 
 Securities available for sale   318,891     6,403   2.68%    358,690     7,225   2.69% 
 Securities held to maturity   72,350     575   1.06%    70,454     577   1.09% 
 Interest-bearing deposits   13,288     55   0.55%    125,295     246   0.26% 
Total earning assets   2,180,273     72,869   4.47%    2,229,557     74,155   4.45% 
Other assets    287,784         311,825      
Total assets$  2,468,057      $  2,541,382      
               
Liabilities and stockholders' equity            
Interest-bearing deposits            
 Demand deposits $  339,920  $  177   0.07% $  342,639  $  156   0.06% 
 Savings deposits    533,799     191   0.05%    532,641     289   0.07% 
 Time deposits   527,056     2,966   0.75%    655,314     4,231   0.86% 
Total interest-bearing deposits   1,400,775     3,334   0.32%    1,530,594     4,676   0.41% 
Borrowings            
 Federal funds purchased   5,393     26   0.64%    2     -   0.00% 
 Retail repurchase agreements   69,347     37   0.07%    70,325     53   0.10% 
 Wholesale repurchase agreements   50,000     1,410   3.77%    50,000     1,405   3.76% 
 FHLB advances and other borrowings   124,803     2,578   2.76%    91,305     2,713   3.97% 
Total borrowings   249,543     4,051   2.17%    211,632     4,171   2.64% 
Total interest-bearing liabilities   1,650,318     7,385   0.60%    1,742,226     8,847   0.68% 
Noninterest-bearing demand deposits   457,250         429,661      
Other liabilities   22,581         20,472      
Total liabilities   2,130,149         2,192,359      
Stockholders' equity   337,908         349,023      
Total liabilities and stockholders' equity$  2,468,057      $  2,541,382      
Net interest income, FTE  $  65,484      $  65,308    
Net interest rate spread     3.88%      3.77% 
Net interest margin     4.01%      3.92% 
               
 (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, 
    2016   2015  
(Amounts in thousands)Interest(1) Average Yield/
Rate(1) 		 Interest(1) Average Yield/
Rate(1) 		 
Earning assets        
Loans(2)$  21,974   4.80% $  22,291  5.28% 
 Accretion income   1,683       2,930    
 Less: cash accretion income   699       903    
 Non-cash accretion income   984       2,027    
Loans, normalized(3)   20,990   4.59%    20,264  4.80% 
Other earning assets   2,156   2.40%    2,622  2.07% 
Total earning assets   23,146   4.23%    22,886  4.17% 
Total interest-bearing liabilities   2,500   0.61%    2,679  0.63% 
Net interest income, FTE(3)$  20,646    $  20,207    
Net interest rate spread, normalized(3)   3.62%   3.54% 
Net interest margin, normalized(3)   3.77%   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. 
           
   Nine Months Ended September 30, 
    2016   2015 
(Amounts in thousands)Interest(1) Average Yield/
Rate(1) 		 Interest(1) Average Yield/
Rate(1) 		 
Earning assets        
Loans(2)$  65,836   4.95% $  66,107  5.28% 
 Accretion income   6,183       8,765    
 Less: cash accretion income   2,290       3,326    
 Non-cash accretion income   3,893       5,439    
Loans, normalized(3)   61,943   4.66%    60,668  4.84% 
Other earning assets   7,033   2.32%    8,048  1.94% 
Total earning assets   68,976   4.23%    68,716  4.12% 
Total interest-bearing liabilities   7,385   0.60%    8,847  0.68% 
Net interest income, FTE(3)$  61,591    $  59,869    
Net interest rate spread, normalized(3)   3.63%   3.44% 
Net interest margin, normalized(3)   3.77%   3.59% 
           
 (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) 2016   2016   2016   2015   2015   2016   2015  
Noninterest income              
 Wealth management   653     810     684     744     790     2,147     2,231  
 Service charges on deposits   3,494     3,361     3,291     3,563     3,744     10,146     10,154  
 Other service charges and fees   2,024     2,054     2,010     2,058     1,974     6,088     5,987  
 Insurance commissions   1,592     1,600     2,191     1,563     1,650     5,383     5,336  
 Net impairment losses recognized in earnings   (4,635)    (11)    -     -     -     (4,646)    -  
 Net (loss) gain on sale of securities   25     (79)    1     (7)    (39)    (53)    151  
 Net FDIC indemnification asset amortization   (1,369)    (1,328)    (1,159)    (1,200)    (1,768)    (3,856)    (5,179) 
 Net gain on divestiture   3,065     -     -     -     -     3,065     -  
 Other operating income   1,046     623     885     762     723     2,554     3,367  
Total noninterest income    5,895     7,030     7,903     7,483     7,074     20,828     22,047  
Noninterest expense              
 Salaries and employee benefits   9,828     10,198     10,475     10,268     9,971     30,501     29,357  
 Occupancy expense   1,249     1,359     1,531     1,413     1,443     4,139     4,404  
 Furniture and equipment expense   1,066     1,109     1,096     1,345     1,259     3,271     3,854  
 Amortization of intangibles   316     277     278     281     281     871     837  
 FDIC premiums and assessments   363     372     374     332     377     1,109     1,181  
 FHLB debt prepayment fees   -     -     -     -     -     -     1,702  
 Merger, acquisition, and divestiture expense   226     410     39     -     -     675     86  
 Other operating expense   5,509     4,997     5,021     5,444     5,688     15,527     15,667  
Total noninterest expense   18,557     18,722     18,814     19,083     19,019     56,093     57,088  
                


Efficiency Ratio


EFFICIENCY RATIO CALCULATION (Unaudited) 
                 
   Three Months Ended Nine Months Ended 
   September 30, June 30, March 31, December 31, September 30, September 30, 
    2016   2016   2016   2015   2015   2016   2015  
(Amounts in thousands)              
Noninterest expense, GAAP$  18,557  $  18,722  $  18,814  $  19,083  $  19,019  $  56,093  $  57,088  
Non-GAAP adjustments              
 Merger, acquisition, and divestiture expense   (226)    (410)    (39)    -     -     (675)    (86) 
 FHLB debt prepayment fees   -     -     -     -     -     -     (1,702) 
 OREO expense and net loss   (278)    (247)    (711)    (475)    (1,220)    (1,236)    (1,963) 
 Goodwill impairment   -     -     -     -     -     -     -  
 Other non-core, non-recurring items   (168)    (30)    (174)    (61)    15     (372)    (198) 
Adjusted noninterest expense   17,885     18,035     17,890     18,547     17,814     53,810     53,139  
                 
Net interest income, GAAP   21,121     21,691     21,111     21,175     21,669     63,923     63,578  
Noninterest income, GAAP   5,895     7,030     7,903     7,483     7,074     20,828     22,047  
Non-GAAP adjustments              
 Tax equivalency adjustment   509     521     531     548     565     1,561     2,402  
 Net impairment losses   4,635     11     -     -     -     4,646     -  
 Net (gain) loss on sale of securities   (25)    79     (1)    7     39     53     (151) 
 Net gain on divestiture   (3,065)    -     -     -     -     (3,065)    -  
 Other non-core items   (432)    (30)    (414)    (30)    (60)    (876)    (1,233) 
Adjusted net interest and noninterest income   28,638     29,302     29,130     29,183     29,287     87,070     86,643  
                 
Non-GAAP efficiency ratio(1) 62.45%  61.55%  61.41%  63.55%  60.83%  61.80%  61.33% 
GAAP efficiency ratio 68.69%  65.19%  64.84%  66.59%  66.17%  66.19%  66.67% 
                 
(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) 2016   2016   2016   2015   2015 
Assets         
Total cash and cash equivalents   65,929     44,301     39,587     51,787     62,024 
Securities available for sale    220,856     322,699     338,469     366,173     382,212 
Securities held to maturity    72,182     72,239     72,485     72,541     72,596 
Loans held for sale   -     -     -     -     523 
Loans held for investment, net of unearned income         
 Non-covered   1,774,547     1,733,398     1,685,891     1,623,506     1,600,271 
 Covered   61,837     68,585     76,538     83,035     90,203 
 Less allowance for loan losses   (19,633)    (21,099)    (20,467)    (20,233)    (20,127)
Loans held for investment, net   1,816,751     1,780,884     1,741,962     1,686,308     1,670,347 
FDIC indemnification asset   14,332     16,431     18,787     20,844     22,049 
Premises and equipment, net   50,564     50,199     50,799     52,756     53,442 
Other real estate owned, non-covered   4,052     4,187     5,313     4,873     5,088 
Other real estate owned, covered   2,437     2,017     2,279     4,034     4,079 
Interest receivable   5,498     6,115     5,968     6,007     5,910 
Goodwill   101,776     100,486     100,486     100,486     100,810 
Other intangible assets   7,964     4,688     4,965     5,243     5,583 
Other assets   87,932     91,082     89,187     91,224     93,453 
Total assets$  2,450,273  $  2,495,328  $  2,470,287  $  2,462,276  $  2,478,116 
            
Liabilities         
Deposits         
 Noninterest-bearing$  473,509  $  451,003  $  453,336  $  451,511  $  442,021 
 Interest-bearing   1,388,390     1,373,412     1,421,329     1,421,748     1,460,881 
Total deposits   1,861,899     1,824,415     1,874,665     1,873,259     1,902,902 
Interest, taxes, and other liabilities   26,599     25,553     24,576     26,630     25,356 
Federal funds purchased   -     42,000     18,000     -     - 
Securities sold under agreements to repurchase   118,532     113,392     134,661     138,614     124,076 
FHLB borrowings   90,000     140,000     65,000     65,000     65,000 
Other borrowings   15,707     15,756     15,756     15,756     15,955 
Total liabilities   2,112,737     2,161,116     2,132,658     2,119,259     2,133,289 
            
Stockholders' equity         
Common stock   21,382     21,382     21,382     21,382     21,382 
Additional paid-in capital   227,884     227,791     227,725     227,692     227,621 
Retained earnings   166,689     163,030     159,223     155,647     152,046 
Treasury stock, at cost   (78,789)    (74,974)    (64,968)    (56,457)    (52,484)
Accumulated other comprehensive income (loss)   370     (3,017)    (5,733)    (5,247)    (3,738)
Total stockholders' equity   337,536     334,212     337,629     343,017     344,827 
Total liabilities and stockholders' equity$  2,450,273  $  2,495,328  $  2,470,287  $  2,462,276  $  2,478,116 
            
Shares outstanding at period-end   16,988,972     17,155,322     17,631,011     18,098,141     18,313,425 
Book value per common share(1)$  19.87  $  19.48  $  19.15  $  18.95  $  18.83 
Tangible book value per common share(2)   13.41     13.35     13.17     13.11     13.02 
            
(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) 2016   2016   2016   2015   2015 
Allowance for Loan Losses          
Beginning balance$  21,099  $  20,467  $  20,233  $  20,127  $  20,258 
(Recovery of) provision for loan losses charged         
 to operations   (1,154)    722     1,187     434     381 
(Recovery of) provision for loan losses recorded         
 through the FDIC indemnification asset   -     (10)    9     -     (75)
Charge-offs   (772)    (691)    (1,228)    (805)    (689)
Recoveries   460     611     266     477     252 
Net charge-offs   (312)    (80)    (962)    (328)    (437)
Ending balance$  19,633  $  21,099  $  20,467  $  20,233  $  20,127 
            
Nonperforming Assets         
Non-covered nonperforming assets         
Nonaccrual loans $  17,487  $  16,626  $  16,196  $  17,847  $  17,100 
Accruing loans past due 90 days or more   62     64     243     -     3 
Troubled debt restructurings ("TDRs")(1)   115     115     158     73     74 
Total non-covered nonperforming loans   17,664     16,805     16,597     17,920     17,177 
OREO   4,052     4,187     5,313     4,873     5,088 
Total non-covered nonperforming assets$  21,716  $  20,992  $  21,910  $  22,793  $  22,265 
            
Covered nonperforming assets         
Nonaccrual loans $  688  $  680  $  1,955  $  647  $  815 
Total covered nonperforming loans   688     680     1,955     647     815 
OREO   2,437     2,017     2,279     4,034     4,079 
Total covered nonperforming assets$  3,125  $  2,697  $  4,234  $  4,681  $  4,894 
            
Additional Information         
Performing TDRs(2)$  13,336  $  13,562  $  13,474  $  13,889  $  13,965 
Total TDRs(3)   13,451     13,677     13,632     13,962     14,039 
            
Non-covered ratios         
Nonperforming loans to total loans 1.00%  0.97%  0.98%  1.10%  1.07%
Nonperforming assets to total assets 0.91%  0.87%  0.92%  0.96%  0.93%
Non-PCI allowance to nonperforming loans 111.08%  125.48%  123.17%  112.61%  117.06%
Non-PCI allowance to total loans 1.11%  1.22%  1.21%  1.24%  1.26%
Annualized net charge-offs to average loans 0.07%  0.02%  0.23%  0.08%  0.11%
            
Total ratios         
Nonperforming loans to total loans 1.00%  0.97%  1.05%  1.09%  1.06%
Nonperforming assets to total assets 1.01%  0.95%  1.06%  1.12%  1.10%
Allowance for loan losses to nonperforming loans 106.98%  120.67%  110.32%  108.97%  111.87%
Allowance for loan losses to total loans 1.07%  1.17%  1.16%  1.19%  1.19%
Annualized net charge-offs to average loans 0.07%  0.02%  0.22%  0.08%  0.10%
            
(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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