First Community Bancshares, Inc. Form 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
October 26, 2005
Date of Report (Date of earliest event reported)
FIRST COMMUNITY BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
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Nevada
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000-19297
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55-0694814 |
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.) |
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P.O. Box 989
Bluefield, Virginia
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24605-0989 |
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(Address of principal executive offices)
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(Zip Code) |
(276) 326-9000
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
TABLE OF CONTENTS
Item 7.01 Regulation FD Disclosure
On October 26, 2005, First Community Bancshares, Inc. (the Company) held a conference call to
discuss its financial results for the quarter ended September 30, 2005. The conference call was
previously announced in press releases dated October 3, 2005, and October 26, 2005. During such
conference call, in addition to information from the aforementioned press release, the Company
disclosed the following information:
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The Company noted that at this time, results are on track with
plan for the year, with net income in line with budget and asset
growth likewise on target with projected. Results in the de novo
offices are encouraging with offices in Winston-Salem, Charlotte,
and Mount Airy, North Carolina, Bridgeport, West Virginia, and
Blacksburg, Virginia, all reporting profits for the quarter. The
Chesapeake, Virginia, office is on its way to breaking even and
new offices in Kernersville, North Carolina, Charleston, West
Virginia, and Roanoke, Virginia, are just beginning operations.
The Company is seeing positive results from the expansion through
Loan Production Offices as well as its full service offices in
Winston-Salem. |
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The Company realized securities gains of $536 thousand in the
third quarter of 2005. The securities gain include gains on the
call and redemption of debt securities, but the bulk of this gain,
approximately $394 thousand emanated from the sale of equity
securities held for sale. The securities were sold as part of the
Companys investment program which has yielded consistent gains
over the last three years. The sale of equity securities in the
most recent quarter also furthered the realization of a capital
loss carry-forward from 2004. The after-tax gain of approximately
$234 thousand on the sale of equities yielded $.02 per share in
net earnings. |
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The Company noted asset growth for the quarter was strong with an
annualized growth rate of 10.8%. Growth for the quarter was
centered in the core deposit accounts in the new Winston-Salem
market and included large deposits in the business money market
category. The growth rate for the quarter was exceptional and the Company
does not anticipate that it would continue at that rate for the
fourth or succeeding quarters. |
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The Company noted loan growth has been strong and generally on
pace with budgeted levels throughout 2005. Annualized portfolio
growth of 9% has been split among the commercial and retail loan
categories. Increases in the retail portfolio have actually
outpaced commercial by about 2 to 1. The Company noted that it
continued to see strong demand for its residential real estate
products. |
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The Company noted that it has seen significant growth in the North
Carolina offices in Winston-Salem and Charlotte. Total assets in
that new region are approaching $110 million. Moreover, those
offices are currently funding approximately 60% of their lending
activities through deposit gathering operations. Including the
remaining loan production offices, the Company has been able to
grow assets in new markets by over $160 million through this
organic growth in its combined LPO and de novo strategy. The
Company noted that it will
continue this strategy through the addition of new offices to fill in new markets and expand
into adjacent markets. |
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The Company noted that it recently added two Registered Investment
Advisors in its Richmond area. The Company also noted that other
growth initiatives in Stone Capital Management have resulted in a
60% increase in top line revenues compared to 2004. The Company
also noted that when coupled with fiduciary revenues, total asset
management revenue has grown approximately $573,000 in the
comparable year-to-date periods. |
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The Company noted that at quarter-end it carried a large liquidity
position as a result of the last FHLB advance. The Company also
noted that the advance locked in low-cost funding which enhanced its
asset-sensitive position. |
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The Company noted that return on tangible equity for the quarter
ended September 30, 2005, was 21.1%. |
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The Company noted that it continues to position its balance sheet
to take advantage of rising short-term interest rates. The
Company noted that it expects every quarter-point increase in
short-term interest rates to have a 4 basis point, or roughly
$800,000, favorable impact on the earning asset yield. |
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The Company noted that it is consolidating loan operations
functions, and that it expects that it can result in cost savings
of roughly $250,000 a year beginning in 2006. |
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The Company noted that it experienced some leveling off of the
staffing costs in its LPOs. The Company also noted that it had
made improvements to its incentive compensation plan, and
implemented changes to its health and welfare plans in an attempt
to control rising costs. |
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The Company noted that it received confirmation that a refund was
due on the years under audit by the West Virginia State Tax
Department, and as a result the Company was able to reduce the tax
reserve by approximately $233,000. |
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The Company noted that its current target growth markets include
Richmond and eastern Virginia, Winston-Salem, the Triad, and
Charlotte, North Carolina. |
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The Company noted that it is recruiting to replace significant
turnover in its Charlotte, North Carolina, LPO. |
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The Company noted that it was holding real estate near Beckley,
West Virginia, for potential branch expansion. |
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The Company noted that loans and deposits at its Clifton Forge
branch were approximately $8 million and $45 million,
respectively, at September 30, 2005. |
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The Company noted that its tax-equivalent yield on securities
available for sale was approximately 4.9% for the most recent
quarter. |
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The Company noted that its most recent FHLB advance had a
seven-year maturity and a three-year fixed interest rate of 3.64%. |
This Current Report on Form 8-K contains 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 Companys Securities and Exchange
Commission reports, including but not limited to the Annual Report on Form 10-K for the most recent
year ended. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not
undertake to update forward-looking statements contained within this news release.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on
Form 8-K shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange
Act of 1934, as amended, or otherwise subject to the liability of that Section, and shall not be
incorporated by reference into any registration statement or other document filed under the
Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in
such filing or document.
Item 9.01 Financial Statements and Exhibits
(c) The following exhibit is included with this report:
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Exhibit No. |
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Exhibit Description |
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99.1
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Slides from the October 26, 2005, conference call |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly authorized.
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FIRST COMMUNITY BANCSHARES, INC.
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Date: October 27, 2005 |
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/s/ Robert L. Schumacher
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Robert L. Schumacher |
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Chief Financial Officer |
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