First Community issues dividend

Staff report

BLUEFIELD, VA — First Community Bancshares Inc. (NASDAQ:FCBC) last week announced financial results for the quarter and six months ending June 30.

The company reported net income of $6.18 million for the quarter, or 33 cents per share, and $12.13 million for the six months ended June 30, of 64 cents per share. Core earnings totaled $6.10 million for the quarter and $12.11 million for the six months.

The company also announced that the board of directors declared a quarterly cash dividend to common shareholders of 14 cents share, an increase of 8 percent over the first quarter of this year and the same quarter a year ago. The quarterly dividend is payable to common shareholders of record on Aug. 7, and is expected to be paid on or about Aug. 21. This marks the 30th consecutive year of cash dividends paid to stockholders and represents average annual increases in the quarterly dividend rate of 8 percent over the past five years.

The company prepaid an additional $25 million in Federal Home Loan Bank convertible advances during the second quarter. The prepayment was in keeping with the company’s strategic goal of reducing high cost wholesale debt.

The firm repurchased 345,173 common shares during the second quarter, bringing total repurchased shares to 684,407 during the first half of 2015.

Net charge-offs decreased $758 thousand, or 73.74%, and the ratio of annualized net charge-offs to average non-covered loans improved 19 basis points to 0.07% for the second quarter of 2015 compared to the same quarter of 2014.

The company significantly exceeds regulatory “well capitalized” targets as of June 30, according to a statement released by the bank.

First Community Bancshares Inc., a financial holding company headquartered in Bluefield, Va.,, provides banking products and services through its wholly-owned subsidiary First Community Bank. First Community Bank operated 52 banking locations throughout Virginia, West Virginia, North Carolina, and Tennessee.

Staff report