First Community Bancshares, Inc. 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
January 25, 2006
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:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 7.01 Regulation FD Disclosure
On January 25, 2006, First Community Bancshares, Inc. (the Company) held a conference call to
discuss its financial results for the quarter ended December 31, 2005. The conference call was
previously announced in the earnings release dated January 24, 2006. 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 results from the de novo offices in
Winston-Salem, Charlotte, and Mount Airy, North Carolina,
Bridgeport, West Virginia, and Blacksburg, Virginia are good, as
they all showed quarterly profits. The Winston-Salem offices grew
by roughly $60 million in 2005. |
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The Company noted that after the sale of the Clifton Forge branch,
it identified specific properties in the Richmond and
Winston-Salem areas where it will continue its branching efforts.
The Company is planning to open eight to ten offices in those two
areas in 2006 and 2007. |
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The Company noted that asset growth remained strong for 2005 as it
finished the year with almost 7% more in total assets. Deposit
growth on the year was roughly 7.7% on a same-store basis. |
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The Company noted that loan growth remained strong and the
portfolio finished the year gaining over 7%. Growth was fairly
evenly split between retail and commercial categories. Consumer
loan production for the quarter was approximately $82 million and
commercial loan production was approximately $118 million. |
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The Company noted that it is very encouraged by the continued
demand for consumer real estate loans, and the success of its home
equity product. Outstandings in the home equity product were up
$17 million, or 53%, in 2005. |
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The Companys management is very happy with the growth experienced
in the Wealth Management business, and continues to be excited
about the prospects for that line. In 2006, Management hopes to
accelerate its commission- and fee-based revenue activities in
other areas, and is currently exploring opportunities to invest in
one or more insurance sales agencies. |
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The Company noted that it will recognize increased compensation
expense for stock options going forward, and it expects the
increase to be roughly two cents in 2006. |
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The Company noted the new FHLB advances have much lower funding
costs, and it expects reduction in annual interest expense of
approximately $1.2 million in a flat and steady interest rate
environment. |
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The Company noted that during the fourth quarter it completed an
investment in a limited partnership which qualifies for historical
tax credits, and the net result was a credit to its provision for
income taxes of about a half million dollars. |
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The Company noted that it added to the bonus pool as year-end
results firmed up and management began reviewing corporate-wide
incentive plans for individuals. It also made the decision to
fully honor some charitable commitments, rather than delaying
funding into future periods. The combination of these additional
expenses decreased EPS by approximately 2 to 3 cents per share. |
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The Company noted that after excluding non-core transactions, EPS
was approximately 57 cents per share for the fourth quarter. |
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The Company noted that other service charges and fees were up $546
thousand year over year, due primarily to increased ATM surcharge
and annual fees. |
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The Company noted that the first phase of the consolidation of
loan operations functions was complete, and it expects to save
approximately $250 thousand annually. |
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The Company noted that most of the increase in net charge offs
from 2004 to 2005 could be attributed to one hotel credit for
which it absorbed a net loss of $1.5 million. The loan dated back
to 1996, and was made well before adoption of its present
underwriting standards. The Company remains confident that this
was an isolated credit exposure within that segment of the
portfolio. |
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The Company also noted that net charge offs for the year were
affected by problems with loans acquired in 2004 along with the
rest of Peoples Community Bank in Tennessee. The problem credits
were discovered during normal due diligence and adequately
reserved at the time of acquisition, and is a major reason for the
decrease in the allowance for loan losses as a percent of total
loans from 1.32% to 1.14%. |
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The Company noted that during the fourth quarter and full year, it
repurchased approximately 32 thousand and 42 thousand shares,
respectively, in treasury stock. |
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.
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:
January 25, 2006
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By:
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/s/ Mark A. Wendel |
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Mark A. Wendel
Chief Financial Officer |