First Community in Virginia Boosted by Deals

Two deals lifted First Community Bancshares (FCBC) in Bluefield, Va., in the first quarter.

Earnings at the $2.7 billion-asset company rose 21% from a year earlier, to $6.9 million, or 33 cents per share.

Net interest income rose roughly 30% from the first quarter of 2012, to $23.4 million, primarily because of loan portfolios that First Community acquired in its purchases last year of Peoples Bank in Richmond and Waccamaw Bank in Whiteville, N.C. The net interest margin expanded 24 basis points year over year, to 4.15%.

First Community's loan portfolio grew 21.4% year over year, to $1.7 billion; chargeoffs rose 75% from a year earlier, to $2.8 million.

Noninterest income fell 1.3% year over year, to $7.9 million. Noninterest expense rose 21% from a year earlier, to $19.5 million, primarily because of expenses related to the Peoples and Waccamaw acquisitions.

First Community's efficiency ratio deteriorated 2.37 percentage points from a year earlier, to 59.55%.