The Register-Herald, Beckley, West Virginia

Money

November 11, 2012

First Century Bankshares earnings up

BLUEFIELD — First Century Bankshares Inc. of Bluefield has announced earnings of $675,000 for the three-month period ending Sept. 30.

This represents an increase of approximately 26.6 percent from the $533,000 earned during the same period in 2011.

This increase was primarily the result of a reduction in the provision for loan losses, partly offsetting a lower net interest margin.

On a per share basis, net income increased to $0.35 per diluted share for the same three-month period, compared to $0.28 per diluted share for the same period in 2011.

Net income was $2,176,000, or $1.14 per share, for the nine-month period ended Sept. 30, compared to $1,402,000, or $0.74 per share, for the same period in 2011.

Net interest income, for the three-month period ended Sept. 30 was $3,184,000, a decrease of $181,000, or 5.4 percent, as compared to $3,365,000 for the third quarter of 2011.

This decrease was primarily the result of a greater reduction in interest income relative to the reduction in interest expense due to lower loan demand and the impact of an extended lower interest rate environment on the short term nature of the company’s balance sheet.

Net interest margins for the same three months in 2012 and 2011 were 3.03 percent and 3.20 percent, respectively.

Noninterest income, exclusive of securities gains and losses, was $1,377,000 and represented a small increase of $9,000, or 0.7 percent, compared to $1,368,000 for the same period in 2011.

A decrease in fiduciary fees and service charges on deposit accounts was offset by increases in other noninterest income, primarily from secondary mortgage loan originations.

During the third quarter, investment gains of $112,000 were recognized compared to gains of $549,000 recognized in the third quarter of 2011.

Noninterest expense of $3,354,000 for the quarter ended Sept. 30, 2012 was essentially unchanged from $3,350,000 for the same period in 2011.

The provision for loan losses was $440,000 for the three months ended September 30, 2012.

This was a 62.1 percent decrease when compared to the provision of $1,160,000 for the same period in 2011.

Net charge-offs were $390,000 for the quarter ended September 30, 2012, compared to $3,730,000 for the quarter ended September 30, 2011.

Earnings for the three-month periods ended September 30, 2012 and September 30, 2011, reflect an annualized return on average assets (ROAA) of 0.64 percent and 0.51 percent, respectively.

Also, these earnings reflect an annualized return on average equity (ROAE) of 6.45 percent and 5.18 percent for the three-month periods ending September 30, 2012 and 2011, respectively.

1
Text Only
Money