FIRST COMMUNITY BANKSHARES INC /VA/ - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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Exhibit 99.1


NEWS RELEASE
FOR IMMEDIATE RELEASE:		FOR MORE INFORMATION, CONTACT:
January 23, 2018		David D. Brown
		(276) 326-9000

First Community Bancshares, Inc. Announces Fourth Quarter and Full Year 2017 Results

and Quarterly Dividend

Bluefield, Virginia – 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 year ended December 31, 2017. The Company reported net income of $1.21 million, or $0.07 per diluted common share for the quarter ended December 31, 2017, and $21.49 million, or $1.26 per diluted common share for the year ended December 31, 2017.

On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Reform Act”), was enacted into law. The Tax Reform Act reduces the federal tax rate for corporations from 35% to 21%, effective January 1, 2018, and changes, or limits, certain tax deductions. As a result of the new law, generally accepted accounting principles in the United States (“GAAP”) require the immediate revaluation of deferred tax assets to a value reflective of the lower corporate tax rate. During the fourth quarter of 2017, the Company recorded a one-time estimated revaluation adjustment of approximately $6.55 million to reduce its net deferred tax asset, which increased the provision for income taxes.

Excluding the impact of the non-cash revaluation, fourth quarter earnings were $7.77 million, or $0.45 per diluted share, an increase of $1.36 million, or 21.25%, over fourth quarter 2016. Full year earnings exclusive of the revaluation were $28.04 million, an increase of $2.91 million, or 11.59%, over 2016 earnings. Adjusted return on assets and equity were 1.18% and 8.02%, respectively, both significant increases over the prior year.

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 February 2, 2018, and is expected to be paid on or about February 16, 2018. The current year marks the 33^rd consecutive year of regular cash dividends paid to stockholders.

Fourth Quarter 2017 Highlights

●	Income Statement

Net income totaled $1.21 million, or $0.07 per diluted common share for the fourth quarter of 2017.

Excluding the impact of the one-time deferred tax asset revaluation, earnings increased $1.36 million, or 21.25% to $7.77 million and diluted earnings per share increased $0.07 to $0.45 compared to the same quarter of 2016.

The non-GAAP efficiency ratio improved to 57.04% compared to 61.58% in the same quarter of 2016.

Net interest margin increased 18 basis points to 4.17%, and normalized net interest margin increased 12 basis points to 3.95% compared to the same quarter of 2016.

●	Balance Sheet

Net charge-offs decreased $2.10 million, or 59.23%, to $1.44 million for the year ended December 31, 2017, compared to the same period of 2016.

Book value per common share increased $0.68 to $20.63 compared to December 31, 2016.

Tangible book value per common share increased $0.75 to $14.64 compared to December 31, 2016.

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

Non-GAAP Financial Measures

The Company prepares its financial statements in accordance with 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 December 31, 2017. First Community Bank provides insurance services through First Community Insurance Services, which operates 8 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 $957 million in combined assets as of December 31, 2017. The Company reported consolidated assets of $2.39 billion as of December 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.firstcommunitybank.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
(Amounts in thousands, except share	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
and per share data)	2017			2017			2017			2017			2016			2017			2016
Interest income
Interest and fees on loans	$	22,314		$	22,694		$	22,914		$	21,827		$	21,956		$	89,749		$	87,718
Interest on securities		1,095			1,080			1,170			1,206			1,362			4,551			6,853
Interest on deposits in banks		353			275			221			159			98			1,008			153
Total interest income		23,762			24,049			24,305			23,192			23,416			95,308			94,724
Interest expense
Interest on deposits		1,313			1,275			1,233			1,166			1,145			4,987			4,479
Interest on borrowings		716			724			778			885			1,314			3,103			5,365
Total interest expense		2,029			1,999			2,011			2,051			2,459			8,090			9,844
Net interest income		21,733			22,050			22,294			21,141			20,957			87,218			84,880
Provision for loan losses		615			730			934			492			500			2,771			1,255
Net interest income after provision		21,118			21,320			21,360			20,649			20,457			84,447			83,625
Total noninterest income		7,947			7,135			5,475			5,691			6,238			26,248			27,066
Total noninterest expense		17,132			16,909			17,458			17,083			16,653			68,582			72,746
Income before income taxes		11,933			11,546			9,377			9,257			10,042			42,113			37,945
Income tax expense		10,720			3,894			2,959			3,055			3,638			20,628			12,819
Net income	$	1,213		$	7,652		$	6,418		$	6,202		$	6,404		$	21,485		$	25,126

Earnings per common share
Basic	$	0.07		$	0.45		$	0.38		$	0.36		$	0.38		$	1.26		$	1.45
Diluted		0.07			0.45			0.38			0.36			0.38			1.26			1.45
Cash dividends per common share		0.18			0.18			0.16			0.16			0.16			0.68			0.60
Weighted average shares outstanding
Basic		16,992,519			17,005,654			17,012,189			16,998,125			16,891,010			17,002,116			17,319,689
Diluted		17,083,949			17,082,729			17,082,832			17,072,174			17,043,869			17,077,842			17,365,524
Performance ratios
Return on average assets		0.20	%		1.29	%		1.08	%		1.06	%		1.05	%		0.91	%		1.02	%
Return on average common equity		1.35	%		8.61	%		7.41	%		7.35	%		7.49	%		6.14	%		7.42	%
Return on average tangible common equity⁽¹⁾		1.89	%		12.13	%		10.51	%		10.50	%		10.75	%		8.69	%		10.76	%

(1)

A non-GAAP financial measure defined as average stockholders’ equity less average goodwill and other intangibles

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	2017			2017			2017			2017			2016			2017			2016
per share data)
Net income, GAAP	$	1,213		$	7,652		$	6,418		$	6,202		$	6,404		$	21,485		$	25,126
Non-GAAP adjustments:
Net gain on divestitures		-			-			-			-			(619	)		-			(3,684	)
Allowance reversal for sold loans		-			-			-			-			-			-			(1,354	)
Merger, acquisition, and divestiture expense		-			-			-			-			55			-			730
Net loss (gain) on sale of securities		4			-			657			-			(388	)		661			(335	)
Net impairment losses		-			-			-			-			-			-			4,646
Deferred tax asset revaluation (estimated)		6,552			-			-			-			-			6,552			-
Other non-core items		(140	)		34			(174	)		(18	)		(48	)		(298	)		(552	)
Total adjustments to core earnings		6,416			34			483			(18	)		(1,000	)		6,915			(549	)
Tax effect		(50	)		12			345			(7	)		(708	)		301			(542	)
Core earnings, non-GAAP⁽¹⁾	$	7,679		$	7,674		$	6,556		$	6,191		$	6,112		$	28,099		$	25,119

Core diluted earnings per common share	$	0.45		$	0.45		$	0.38		$	0.36		$	0.36		$	1.64		$	1.45
Performance ratios
Core return on average assets		1.28	%		1.29	%		1.11	%		1.06	%		1.01	%		1.19	%		1.02	%
Core return on average common equity		8.56	%		8.63	%		7.57	%		7.33	%		7.15	%		8.04	%		7.42	%
Core return on average tangible common equity⁽²⁾		11.99	%		12.16	%		10.74	%		10.48	%		10.26	%		11.36	%		10.75	%

(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 and other intangibles

Net Interest Income and Margin

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)

	Three Months Ended December 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⁾	$	1,822,583	$	22,387		4.87%	$	1,846,848	$	22,012		4.74%
Securities available for sale		171,288		1,383		3.20%		193,342		1,644		3.38%
Securities held to maturity		25,165		105		1.66%		67,254		182		1.08%
Interest-bearing deposits		95,174		353		1.47%		35,470		98		1.10%
Total earning assets		2,114,210		24,228		4.55%		2,142,914		23,936		4.44%
Other assets		256,591						275,022
Total assets	$	2,370,801					$	2,417,936

Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits	$	451,024	$	111		0.10%	$	348,869	$	73		0.08%
Savings deposits		512,156		34		0.03%		522,864		57		0.04%
Time deposits		502,515		1,168		0.92%		519,521		1,015		0.78%
Total interest-bearing deposits		1,465,695		1,313		0.36%		1,391,254		1,145		0.33%
Borrowings
Federal funds purchased		-		-		-		82		-		0.00%
Retail repurchase agreements		5,470		1		0.07%		66,776		12		0.07%
Wholesale repurchase agreements		25,000		204		3.24%		48,913		464		3.77%
FHLB advances and other borrowings		50,000		511		4.05%		92,175		838		3.62%
Total borrowings		80,470		716		3.53%		207,946		1,314		2.51%
Total interest-bearing liabilities		1,546,165		2,029		0.52%		1,599,200		2,459		0.61%
Noninterest-bearing demand deposits		446,487						454,161
Other liabilities		22,103						24,410
Total liabilities		2,014,755						2,077,771
Stockholders' equity		356,046						340,165
Total liabilities and stockholders' equity	$	2,370,801					$	2,417,936
Net interest income, FTE			$	22,199					$	21,477
Net interest rate spread						4.03%						3.83%
Net interest margin						4.17%						3.99%

(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,
	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⁾	$	1,837,092	$	90,032		4.90%	$	1,793,618	$	87,848		4.90%
Securities available for sale		164,489		5,695		3.46%		287,332		8,047		2.80%
Securities held to maturity		32,954		487		1.48%		71,069		757		1.07%
Interest-bearing deposits		73,405		1,008		1.37%		18,864		153		0.81%
Total earning assets		2,107,940		97,222		4.61%		2,170,883		96,805		4.46%
Other assets		262,381						284,575
Total assets	$	2,370,321					$	2,455,458

Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits	$	401,092	$	412		0.10%	$	342,169	$	250		0.07%
Savings deposits		520,430		148		0.03%		531,050		248		0.05%
Time deposits		510,411		4,427		0.87%		525,162		3,981		0.76%
Total interest-bearing deposits		1,431,933		4,987		0.35%		1,398,381		4,479		0.32%
Borrowings
Federal funds purchased		1		-		0.00%		4,058		26		0.64%
Retail repurchase agreements		47,716		32		0.07%		68,701		49		0.07%
Wholesale repurchase agreements		25,000		806		3.22%		49,727		1,874		3.77%
FHLB advances and other borrowings		55,502		2,265		4.08%		116,602		3,416		2.93%
Total borrowings		128,219		3,103		2.42%		239,088		5,365		2.24%
Total interest-bearing liabilities		1,560,152		8,090		0.52%		1,637,469		9,844		0.60%
Noninterest-bearing demand deposits		438,513						456,474
Other liabilities		21,955						23,040
Total liabilities		2,020,620						2,116,983
Stockholders' equity		349,701						338,475
Total liabilities and stockholders' equity	$	2,370,321					$	2,455,458
Net interest income, FTE			$	89,132					$	86,961
Net interest rate spread						4.09%						3.86%
Net interest margin						4.23%						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 December 31,
	2017					2016
(Amounts in thousands)	Interest⁽¹⁾		Average Yield/ Rate⁽¹⁾			Interest⁽¹⁾		Average Yield/ Rate⁽¹⁾
Earning assets
Loans⁽²⁾	$	22,387		4.87	%	$	22,012		4.74	%
Accretion income		1,620					1,506
Less: cash accretion income		460					633
Non-cash accretion income		1,160					873
Loans, normalized⁽³⁾		21,227		4.62	%		21,139		4.55	%
Other earning assets		1,841		2.50	%		1,924		2.59	%
Total earning assets		23,068		4.33	%		23,063		4.28	%
Total interest-bearing liabilities		2,029		0.52	%		2,459		0.61	%
Net interest income, FTE⁽³⁾	$	21,039				$	20,604
Net interest rate spread, normalized⁽³⁾				3.81	%				3.67	%
Net interest margin, normalized⁽³⁾				3.95	%				3.83	%

(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,
	2017					2016
(Amounts in thousands)	Interest⁽¹⁾		Average Yield/ Rate⁽¹⁾			Interest⁽¹⁾		Average Yield/ Rate⁽¹⁾
Earning assets
Loans⁽²⁾	$	90,032		4.90	%	$	87,848		4.90	%
Accretion income		7,863					7,690
Less: cash accretion income		2,446					2,924
Non-cash accretion income		5,417					4,766
Loans, normalized⁽³⁾		84,615		4.61	%		83,082		4.63	%
Other earning assets		7,190		2.65	%		8,957		2.37	%
Total earning assets		91,805		4.36	%		92,039		4.24	%
Total interest-bearing liabilities		8,090		0.52	%		9,844		0.60	%
Net interest income, FTE⁽³⁾	$	83,715				$	82,195
Net interest rate spread, normalized⁽³⁾				3.84	%				3.64	%
Net interest margin, normalized⁽³⁾				3.97	%				3.79	%

(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)	2017			2017			2017			2017			2016			2017			2016
Noninterest income
Wealth management	$	811		$	758		$	791		$	790		$	681		$	3,150		$	2,828
Service charges on deposits		3,725			3,605			3,360			3,113			3,442			13,803			13,588
Other service charges and fees		2,237			2,141			2,168			2,078			2,014			8,624			8,102
Insurance commissions		343			306			325			373			59			1,347			5,442
Net impairment losses recognized in earnings		-			-			-			-			-			-			(4,646	)
Net gain (loss) on sale of securities		(4	)		-			(657	)		-			388			(661	)		335
Net FDIC indemnification asset amortization		(331	)		(268	)		(1,586	)		(1,332	)		(1,618	)		(3,517	)		(5,474	)
Net gain on divestitures		-			-			-			-			619			-			3,684
Other operating income		1,166			593			1,074			669			653			3,502			3,207
Total noninterest income		7,947			7,135			5,475			5,691			6,238			26,248			27,066
Noninterest expense
Salaries and employee benefits		9,139			9,137			9,157			8,884			9,411			36,317			39,912
Occupancy expense		1,104			1,082			1,341			1,248			1,158			4,775			5,297
Furniture and equipment expense		1,114			1,133			1,087			1,091			1,070			4,425			4,341
Amortization of intangibles		266			266			263			261			265			1,056			1,136
FDIC premiums and assessments		212			227			227			244			274			910			1,383
Merger, acquisition, and divestiture expense		-			-			-			-			55			-			730
Other operating expense		5,297			5,064			5,383			5,355			4,420			21,099			19,947
Total noninterest expense		17,132			16,909			17,458			17,083			16,653			68,582			72,746

Efficiency Ratio

EFFICIENCY RATIO CALCULATION (Unaudited)

	Three Months Ended															Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2017			2017			2017			2017			2016			2017			2016
(Amounts in thousands)
Noninterest expense, GAAP	$	17,132		$	16,909		$	17,458		$	17,083		$	16,653		$	68,582		$	72,746
Non-GAAP adjustments
Merger, acquisition, and divestiture expense		-			-			-			-			(55	)		-			(730	)
OREO expense and net loss		(14	)		(647	)		(213	)		(328	)		(184	)		(1,202	)		(1,420	)
Other non-core items		-			(64	)		(327	)		-			8			(391	)		(364	)
Adjusted noninterest expense		17,118			16,198			16,918			16,755			16,422			66,989			70,232

Net interest income, GAAP		21,733			22,050			22,294			21,141			20,957			87,218			84,880
Noninterest income, GAAP		7,947			7,135			5,475			5,691			6,238			26,248			27,066
Non-GAAP adjustments
Tax equivalency adjustment		466			470			481			497			520			1,914			2,081
Net impairment losses		-			-			-			-			-			-			4,646
Net loss (gain) on sale of securities		4			-			657			-			(388	)		661			(335	)
Net gain on divestitures		-			-			-			-			(619	)		-			(3,684	)
Other non-core items		(140	)		(30	)		(501	)		(18	)		(40	)		(689	)		(916	)
Adjusted net interest and noninterest income		30,010			29,625			28,406			27,311			26,668			115,352			113,738

Non-GAAP efficiency ratio⁽¹⁾		57.04	%		54.68	%		59.56	%		61.35	%		61.58	%		58.07	%		61.75	%
GAAP efficiency ratio		57.72	%		57.94	%		62.87	%		63.67	%		61.24	%		60.44	%		64.98	%

(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)	2017			2017			2017			2017			2016
Assets
Total cash and cash equivalents	$	157,951		$	105,119		$	106,799		$	152,851		$	76,307
Securities available for sale		165,580			174,424			157,854			158,685			165,579
Securities held to maturity		25,149			25,182			25,216			47,092			47,133
Loans held for investment, net of unearned income
Non-covered		1,789,236			1,806,434			1,796,263			1,784,371			1,795,954
Covered		27,948			31,287			45,845			51,412			56,994
Less allowance for loan losses		(19,276	)		(19,206	)		(18,886	)		(18,458	)		(17,948	)
Loans held for investment, net		1,797,908			1,818,515			1,823,222			1,817,325			1,835,000
FDIC indemnification asset		7,161			7,465			8,159			9,931			12,173
Premises and equipment, net		48,126			48,949			49,598			50,057			50,085
Other real estate owned, non-covered		2,409			3,543			3,914			4,477			5,109
Other real estate owned, covered		105			54			124			241			276
Interest receivable		5,778			5,156			5,072			5,059			5,553
Goodwill		95,779			95,779			95,779			95,779			95,779
Other intangible assets		6,151			6,417			6,683			6,947			7,207
Other assets		76,363			84,177			84,183			82,069			86,197
Total assets	$	2,388,460		$	2,374,780		$	2,366,603		$	2,430,513		$	2,386,398

Liabilities
Deposits
Noninterest-bearing	$	454,143		$	452,940		$	443,800		$	467,677		$	427,705
Interest-bearing		1,475,748			1,410,880			1,413,574			1,438,917			1,413,633
Total deposits		1,929,891			1,863,820			1,857,374			1,906,594			1,841,338
Securities sold under agreements to repurchase		30,086			83,783			86,011			90,653			98,005
FHLB borrowings		50,000			50,000			50,000			65,000			65,000
Other borrowings		-			-			-			244			15,708
Interest, taxes, and other liabilities		27,769			24,540			24,443			24,618			27,290
Total liabilities		2,037,746			2,022,143			2,017,828			2,087,109			2,047,341

Stockholders' equity
Common stock		21,382			21,382			21,382			21,382			21,382
Additional paid-in capital		228,750			228,510			228,326			228,176			228,142
Retained earnings		180,299			182,145			177,556			173,860			170,377
Treasury stock, at cost		(79,121	)		(79,333	)		(78,488	)		(78,533	)		(78,833	)
Accumulated other comprehensive (loss) income		(596	)		(67	)		(1	)		(1,481	)		(2,011	)
Total stockholders' equity		350,714			352,637			348,775			343,404			339,057
Total liabilities and stockholders' equity	$	2,388,460		$	2,374,780		$	2,366,603		$	2,430,513		$	2,386,398

Shares outstanding at period-end		16,998,226			16,986,502			17,017,071			17,013,185			16,994,208
Book value per common share⁽¹⁾	$	20.63		$	20.76		$	20.50		$	20.18		$	19.95
Tangible book value per common share⁽²⁾		14.64			14.74			14.47			14.15			13.89

(1)	Stockholders' equity divided by common shares outstanding
(2)	A non-GAAP financial measure defined as stockholders’ equity less goodwill and other intangibles, divided by common shares outstanding

Asset Quality

SELECTED CREDIT QUALITY INFORMATION (Unaudited)

	December 31,			September 30,			June 30,			March 31,			December 31,
(Amounts in thousands)	2017			2017			2017			2017			2016
Allowance for Loan Losses
Beginning balance	$	19,206		$	18,886		$	18,458		$	17,948		$	19,633
Provision for (recovery of) loan losses charged to operations		615			730			934			492			500
Charge-offs		(967	)		(717	)		(902	)		(357	)		(2,485	)
Recoveries		422			307			396			375			300
Net (charge-offs) recoveries		(545	)		(410	)		(506	)		18			(2,185	)
Ending balance	$	19,276		$	19,206		$	18,886		$	18,458		$	17,948

Nonperforming Assets
Non-covered nonperforming assets
Nonaccrual loans	$	18,997		$	18,942		$	20,146		$	18,537		$	15,854
Accruing loans past due 90 days or more		1			-			-			20			-
Troubled debt restructurings ("TDRs")⁽¹⁾		120			141			100			-			114
Total non-covered nonperforming loans		19,118			19,083			20,246			18,557			15,968
OREO		2,409			3,543			3,914			4,477			5,109
Total non-covered nonperforming assets	$	21,527		$	22,626		$	24,160		$	23,034		$	21,077

Covered nonperforming assets
Nonaccrual loans	$	342		$	420		$	446		$	918		$	608
Total covered nonperforming loans		342			420			446			918			608
OREO		105			54			124			241			276
Total covered nonperforming assets	$	447		$	474		$	570		$	1,159		$	884

Additional Information
Performing TDRs⁽²⁾	$	7,614		$	8,101		$	8,485		$	8,593		$	12,838
Total TDRs⁽³⁾		7,734			8,242			8,585			8,593			12,952

Non-covered ratios
Nonperforming loans to total loans		1.07	%		1.06	%		1.13	%		1.04	%		0.89	%
Nonperforming assets to total assets		0.91	%		0.97	%		1.04	%		0.97	%		0.90	%
Non-PCI allowance to nonperforming loans		100.83	%		100.64	%		93.24	%		99.40	%		112.32	%
Non-PCI allowance to total loans		1.08	%		1.06	%		1.05	%		1.03	%		1.00	%
Annualized net charge-offs to average loans		0.12	%		0.09	%		0.11	%		0.00	%		0.49	%

Total ratios
Nonperforming loans to total loans		1.07	%		1.06	%		1.12	%		1.06	%		0.89	%
Nonperforming assets to total assets		0.92	%		0.97	%		1.04	%		1.00	%		0.92	%
Allowance for loan losses to nonperforming loans		99.05	%		98.48	%		91.27	%		94.78	%		108.28	%
Allowance for loan losses to total loans		1.06	%		1.05	%		1.03	%		1.01	%		0.97	%
Annualized net charge-offs to average loans		0.12	%		0.09	%		0.11	%		0.00	%		0.47	%

(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

FIRST COMMUNITY BANKSHARES INC /VA/ - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - January 23, 2018

Attached files

FIRST COMMUNITY BANKSHARES INC /VA/ Reports