GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

First Community Bancshares Inc. Reports Operating Results (10-Q)

August 14, 2012 | About:
Ron Brounes

10qk

18 followers
First Community Bancshares Inc. (FCBC) filed Quarterly Report for the period ended 2012-06-30.

First Community Bancshares, Inc. has a market cap of $253.7 million; its shares were traded at around $14.28 with a P/E ratio of 13.2 and P/S ratio of 2. The dividend yield of First Community Bancshares, Inc. stocks is 3.1%.

Highlight of Business Operations:

million for the second quarter of 2012 compared with $5.60 million for the second quarter of 2011. The decrease was largely attributed to a reduction in the net gain on sale of securities and increase in merger related expenses associated with the Peoples and Waccamaw acquisitions, offset by decreases in the interest paid on deposit accounts and a reduction to the provision for loan losses. Diluted earnings per common share totaled $0.20 for the second quarter of 2012 compared to $0.31 for the second quarter of 2011.

Net income decreased $1.40 million, or 12.20%, to $10.08 million for first half of 2012 compared with $11.48 million for the first half of 2011. Net income available to common shareholders decreased $1.84 million, or 16.17%, to $9.51 million for the first half of 2012 compared with $11.35 million for the first half of 2011. The decrease was largely attributed to a reduction in the net gain on sale of securities, merger related expenses in connection with the Peoples and Waccamaw acquisitions, and a decline in interest and fee income, offset by decreases in the interest paid on deposit accounts and a reduction to the provision for loan losses. Diluted earnings per common share totaled $0.52 for the first half of 2012 compared to $0.63 for the first half of 2011.

Average earning assets increased $45.65 million and average interest-bearing liabilities decreased $37.82 million for the six months ended June 30, 2012, compared with the same period of 2011. The yield on average earning assets decreased 26 basis points for the six months ended June 30, 2012, compared with the same period of 2011. The average rate paid on interest-bearing liabilities decreased 27 basis points for the six months ended June 30, 2012, compared with the same period of 2011. Average balances and interest yield/rate changes for earning assets and interest-bearing liabilities resulted in a net interest rate spread that was 1 basis point higher for the first half of 2012 compared with the first half of 2011. Our net interest margin increased 3 basis points for the six months ended June 30, 2012, compared with the same period of 2011.

Wealth management revenues remained stable, increasing $10 thousand for the six months ended June 30, 2012, compared with the same period of 2011. Service charges on deposit accounts decreased $42 thousand for the six months ended June 30, 2012, compared with the same period of 2011. Other service charges, commissions, and fees increased $282 thousand, or 9.84%, for the six months ended June 30, 2012, compared with the same period of 2011. Insurance commissions decreased $592 thousand, or 16.89%, for the six months ended June 30, 2012, compared with the same period of 2011. Profit-sharing commissions from our carriers were lower in the first quarter of 2012 compared with the first quarter of 2011 as a result of higher loss experience on our customers policies. Further, the commissions earned for the first half of 2011 include the agency offices sold as part of strategic realignment during the third quarter of 2011.

Income tax as a percentage of pretax income may vary significantly from statutory rates due to permanent differences, which are items of income and expense excluded by law from the calculation of taxable income. Our most significant permanent differences include income on municipal securities, which are exempt from federal income tax; certain dividend payments, which are deductible; and increases in the cash surrender value of life insurance policies. Consolidated income taxes were $2.00 million for the second quarter of 2012 compared to $2.57 million for the second quarter of 2011. The effective tax expense rates for the quarters ended June 30, 2012 and 2011 were 32.87% and 30.99%, respectively. Consolidated income taxes were $4.85 million for the first half of 2012 compared to $4.92 million for the first half of 2011. The effective tax expense rates for the six months ended June 30, 2012 and 2011 were 32.48% and 30.00%, respectively. The increases in the effective tax rates are largely due to an increase in taxable revenues as a percent of net earnings and decrease in the relative amounts of nontaxable revenues.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 2.5/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK