<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 11pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="16" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 12pt; font-weight: bold; text-align: center">UNITED STATES</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="16" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 12pt; font-weight: bold; text-align: center">SECURITIES AND EXCHANGE COMMISSION</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="16" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">WASHINGTON, D.C. 20549</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="16" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="16" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 18pt; font-weight: bold; text-align: center">FORM 8-K</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="16" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="16" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">CURRENT REPORT</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="16" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="16" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">PURSUANT TO SECTION 13 OR 15(d) OF THE</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="16" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">SECURITIES EXCHANGE ACT OF 1934</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="16" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="16" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">January 26, 2012</TD>
    <TD COLSPAN="6" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Date of Report (Date of earliest event reported)</TD>
    <TD COLSPAN="6" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="13" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 18pt; font-weight: bold; text-align: center">FIRST COMMUNITY BANCSHARES, INC.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="13" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="13" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(Exact name of registrant as specified in its charter)</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">Nevada</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">000-19297</TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">55-0694814</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(State or other jurisdiction of incorporation)</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(Commission File Number)</TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(IRS Employer Identification No.)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="6" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>P.O. Box 989</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Bluefield, Virginia</B></P></TD>
    <TD COLSPAN="8" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>24605-0989</B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="6" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="8" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="6" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(Address of principal executive offices)</TD>
    <TD COLSPAN="8" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(Zip Code)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">(276) 326-9000</TD>
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(Registrant&rsquo;s telephone number, including area code)</TD>
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="16" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">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:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD>
    <TD COLSPAN="15" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD>
    <TD COLSPAN="15" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD>
    <TD COLSPAN="15" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD>
    <TD COLSPAN="15" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD></TR>
<TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 28%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 10%">&nbsp;</TD></TR>
</TABLE>
<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Item 7.01&#9;Regulation FD Disclosure </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 26, 2012, the Company held a public
conference call to discuss its financial results for the quarter and year ended December 31, 2011. The conference call was previously
announced in the earnings release dated January 25, 2012. The following are the prepared remarks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">John M. Mendez &ndash; Chief Executive Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">I think we highlighted things pretty well in
the earnings release, but I do think it is important to note that a number of favorable trends emerged during the fourth quarter.
Almost every key element of our operation showed some level of improvement from net interest margins, to non-interest revenues,
to operating expenses, and loan loss provisions. It's unfortunate that accounting impairment overshadowed the sum effect of those
favorable trends in our bottom-line performance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We did incur a non-cash impairment of goodwill
in the insurance segment, as well as an impairment charge on one mortgage bond. Absent the effect of these non-cash charges, core
earnings from banking, wealth, and insurance operations showed very strong improvement over the comparable quarter in 2010. Core
earnings were up 67% over the fourth quarter last year and resulted in a core ROA of 0.94%. So despite our bottom-line GAAP results
we still feel very good about operations for the quarter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We also continue to be pleased with the overall
level of non-performing assets, despite some slight progression in non-accrual loans, our overall asset quality remained sound
and comparatively better than industry averages. In fact our total non-performing assets remained quite low at 1.57% of total assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">David D. Brown &ndash; Chief Financial Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yesterday, we reported common net income for
the fourth quarter of $2.9 million, or $0.17 per share. Core earnings for the quarter and the year came in strong at $5.1 million
and $19.9 million, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">I&rsquo;d like to start off with one of the
big highlights of the quarter. Net interest margin came in at 3.93%, an increase of 16 basis points from last quarter. Most of
the increase was due to being fully invested for the better part of the quarter. This was a move we discussed about six months
ago, and were able to settle on most of our securities purchases early the fourth quarter. The fourth quarter again showed a meaningful
decrease in funding costs. The time deposit portfolio shrank by $27.6 million on average while the yield dropped 9 basis points.
The yield on all interest-bearing funds was 1.21% for the quarter, a decline of 6 basis points from last quarter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We made a $2.4 million provision for loan losses
during the fourth quarter. Other real estate costs and losses amounted to $694 thousand, bringing total credit costs for the quarter
to $3.1 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Wealth revenues decreased $50 thousand on a
linked-quarter basis on weaker trust and brokerage revenues. Linked-quarter, deposit account service charges grew 1%, and other
service charges and fees were about even. Insurance revenues were down linked quarter because of the sale of the two offices as
well as a more difficult environment. We recognized roughly $1.5 million in impairment related to our last non-Agency mortgage
bond. Increases in other operating income from last quarter were seen in secondary market mortgage income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In the area of non-interest expense, fourth
quarter efficiency ratio improved to 54.9%. Total salaries and benefits were down $506 thousand from the third quarter. The decrease
was made up of $216 thousand in lower salaries and wages and decreased incentive compensation accruals of $224 thousand. Average
total FTE&rsquo;s for December were 629 compared to 633 for September and 669 for June. I still feel that we don&rsquo;t see meaningful
decreases in total FTE&rsquo;s from here, rather we will likely have a few strategic additions and replacements to make in the
branch network. Looking forward to 2012, we currently see total salaries and benefits of $34 million. Those costs are usually front-loaded,
so we could see a meaningful increase from fourth to first quarters with that amount dropping lower through the year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">REO expenses and losses amounted to $694 thousand
for the quarter, which is in line with third quarter. Ex-REO costs, other operating costs were roughly in line with last quarter.
Within those other operating costs, increases in marketing expenses were offset by decreases in regulatory assessments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At the end of the period, total assets decreased
$54 million. We experienced nice loan growth during the quarter of $21 million, an increase of 1.6% since September 30th. The CD
portfolio declined $31 million between December 31st and September 30th and $28 million on average.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31st, tangible book value per share
was $11.40, an increase of 15 cents from September 31st. The Company and the Bank continue to be very well-capitalized with the
Bank&rsquo;s leverage ratio building to approximately 10.1%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the fourth quarter, we continued repurchase
activity and bought 33,200 shares at an average price of $11.70. We continue to look for opportunities to repurchase shares. We
certainly see expansion uses for the excess capital, but it&rsquo;s hard to argue buying shares back at or below tangible book.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Gary R. Mills &ndash; Chief Credit Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&rsquo;s loan portfolio at year-end
2011 totaled $1.40 billion, representing a $21 million increase over third quarter and a $10 million increase over year-end 2010.
The loan segments primarily responsible for the fourth quarter growth were the commercial real estate segment, which grew $11.6
million, and the owner occupied residential 1-4 segment which grew $12.0 million. It&rsquo;s too premature to determine if this
type of quarterly loan growth can be sustained, but we are certainly pleased with the efforts of our market personnel in generating
this fourth quarter loan production.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&rsquo;s loan quality measures at
December 31, 2011, continue to compare favorably to industry peers. Total delinquency measured 2.62%; remaining within a fairly
tight band of 2.62% at year-end and 2.12% at June 30, 2011. Composition of fourth quarter total delinquency were loans 30-89 days
past due of $12.1 million, or 0.87%, and non-accrual loans of $24.5 million, or 1.75%. I am especially pleased with the totals
of the 30-89 day category as the fourth quarter is traditionally a difficult collection quarter. Our collection staff and market
personnel are to be commended for this performance. Net charge-offs for the quarter were $2.6 million, or 0.75% annualized. For
the year, net charge-offs totaled approximately $9.3 million as compared to approximately $12.5 million recorded for 2010. The
provision for the fourth quarter and 12 months ended December 31, 2011, totaled $2.4 million and $9.1 million, respectively, which
compares favorably to the provision for loan losses for the fourth quarter and 12 months ended December 31, 2010, of $3.7 million
and $14.8 million, respectively. The allowance for loan and lease losses measured $26.2 million, or 1.88% of total loans, at year-end
as compared to $26.4 million, or 1.92%, and $26.5 million, or 1.91%, as of 3rd quarter and year-end 2010, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The year-end OREO balance of $5.9 million was
flat compared to third quarter, while representing an increase of $1.0 million over year-end 2010. While foreclosure activity remains
relatively consistent with previous quarters, I anticipate sales activity within the winter season may decline resulting in some
upward movement in OREO balances over the next quarter or so.</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 77%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Forward-Looking Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">This Current Report
on Form&nbsp;8-K, including the exhibits hereto,</FONT> may include 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 Company&rsquo;s 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 &ldquo;filed&rdquo; 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<!-- Field: Page; Sequence: 3 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">SIGNATURE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">FIRST COMMUNITY BANCSHARES, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%; padding-right: 5.4pt; padding-left: 5.4pt">Date:</TD>
    <TD STYLE="width: 20%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">January 27, 2012</TD>
    <TD STYLE="width: 18%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt">By:</TD>
    <TD STYLE="width: 49%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">/s/ David D. Brown</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">David D. Brown</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Chief Financial Officer</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"></P>

<!-- Field: Page; Sequence: 4; Options: Last -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>



<P STYLE="margin: 0"></P>

</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "v300597_8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 36536}]
{"company-data": {"conformed-name": "FIRST COMMUNITY BANCSHARES INC /NV/", "cik": "0000859070", "assigned-sic": "6022", "irs-number": "550694814", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-19297", "film-number": "12550081"}, "business-address": {"street1": "PO BOX 989", "city": "BLUEFIELD", "state": "VA", "zip": "26406-0989", "phone": "3044879000"}, "mail-address": {"street1": "1001 MERCER STREET", "street2": "P O BOX 5909", "city": "PRINCETON", "state": "WV", "zip": "24740"}, "former-company": {"former-conformed-name": "FCFT INC", "date-changed": "19930328"}}
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 26, 2012
Date of Report (Date of earliest event reported)
FIRST COMMUNITY BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
Nevada
000-19297
55-0694814
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
P.O. Box 989
Bluefield, Virginia
24605-0989
(Address of principal executive offices)
(Zip Code)
(276) 326-9000
(Registrant's 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:
£
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
£
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
£
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
£
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
1
Item 7.01	Regulation FD Disclosure
On January 26, 2012, the Company held a public
conference call to discuss its financial results for the quarter and year ended December 31, 2011. The conference call was previously
announced in the earnings release dated January 25, 2012. The following are the prepared remarks.
John M. Mendez – Chief Executive Officer
I think we highlighted things pretty well in
the earnings release, but I do think it is important to note that a number of favorable trends emerged during the fourth quarter.
Almost every key element of our operation showed some level of improvement from net interest margins, to non-interest revenues,
to operating expenses, and loan loss provisions. It's unfortunate that accounting impairment overshadowed the sum effect of those
favorable trends in our bottom-line performance.
We did incur a non-cash impairment of goodwill
in the insurance segment, as well as an impairment charge on one mortgage bond. Absent the effect of these non-cash charges, core
earnings from banking, wealth, and insurance operations showed very strong improvement over the comparable quarter in 2010. Core
earnings were up 67% over the fourth quarter last year and resulted in a core ROA of 0.94%. So despite our bottom-line GAAP results
we still feel very good about operations for the quarter.
We also continue to be pleased with the overall
level of non-performing assets, despite some slight progression in non-accrual loans, our overall asset quality remained sound
and comparatively better than industry averages. In fact our total non-performing assets remained quite low at 1.57% of total assets.
David D. Brown – Chief Financial Officer
Yesterday, we reported common net income for
the fourth quarter of $2.9 million, or $0.17 per share. Core earnings for the quarter and the year came in strong at $5.1 million
and $19.9 million, respectively.
I'd like to start off with one of the
big highlights of the quarter. Net interest margin came in at 3.93%, an increase of 16 basis points from last quarter. Most of
the increase was due to being fully invested for the better part of the quarter. This was a move we discussed about six months
ago, and were able to settle on most of our securities purchases early the fourth quarter. The fourth quarter again showed a meaningful
decrease in funding costs. The time deposit portfolio shrank by $27.6 million on average while the yield dropped 9 basis points.
The yield on all interest-bearing funds was 1.21% for the quarter, a decline of 6 basis points from last quarter.
We made a $2.4 million provision for loan losses
during the fourth quarter. Other real estate costs and losses amounted to $694 thousand, bringing total credit costs for the quarter
to $3.1 million.
Wealth revenues decreased $50 thousand on a
linked-quarter basis on weaker trust and brokerage revenues. Linked-quarter, deposit account service charges grew 1%, and other
service charges and fees were about even. Insurance revenues were down linked quarter because of the sale of the two offices as
well as a more difficult environment. We recognized roughly $1.5 million in impairment related to our last non-Agency mortgage
bond. Increases in other operating income from last quarter were seen in secondary market mortgage income.
In the area of non-interest expense, fourth
quarter efficiency ratio improved to 54.9%. Total salaries and benefits were down $506 thousand from the third quarter. The decrease
was made up of $216 thousand in lower salaries and wages and decreased incentive compensation accruals of $224 thousand. Average
total FTE's for December were 629 compared to 633 for September and 669 for June. I still feel that we don't see meaningful
decreases in total FTE's from here, rather we will likely have a few strategic additions and replacements to make in the
branch network. Looking forward to 2012, we currently see total salaries and benefits of $34 million. Those costs are usually front-loaded,
so we could see a meaningful increase from fourth to first quarters with that amount dropping lower through the year.
REO expenses and losses amounted to $694 thousand
for the quarter, which is in line with third quarter. Ex-REO costs, other operating costs were roughly in line with last quarter.
Within those other operating costs, increases in marketing expenses were offset by decreases in regulatory assessments.
2
At the end of the period, total assets decreased
$54 million. We experienced nice loan growth during the quarter of $21 million, an increase of 1.6% since September 30th. The CD
portfolio declined $31 million between December 31st and September 30th and $28 million on average.
At December 31st, tangible book value per share
was $11.40, an increase of 15 cents from September 31st. The Company and the Bank continue to be very well-capitalized with the
Bank's leverage ratio building to approximately 10.1%.
During the fourth quarter, we continued repurchase
activity and bought 33,200 shares at an average price of $11.70. We continue to look for opportunities to repurchase shares. We
certainly see expansion uses for the excess capital, but it's hard to argue buying shares back at or below tangible book.
Gary R. Mills – Chief Credit Officer
The Company's loan portfolio at year-end
2011 totaled $1.40 billion, representing a $21 million increase over third quarter and a $10 million increase over year-end 2010.
The loan segments primarily responsible for the fourth quarter growth were the commercial real estate segment, which grew $11.6
million, and the owner occupied residential 1-4 segment which grew $12.0 million. It's too premature to determine if this
type of quarterly loan growth can be sustained, but we are certainly pleased with the efforts of our market personnel in generating
this fourth quarter loan production.
The Company's loan quality measures at
December 31, 2011, continue to compare favorably to industry peers. Total delinquency measured 2.62%; remaining within a fairly
tight band of 2.62% at year-end and 2.12% at June 30, 2011. Composition of fourth quarter total delinquency were loans 30-89 days
past due of $12.1 million, or 0.87%, and non-accrual loans of $24.5 million, or 1.75%. I am especially pleased with the totals
of the 30-89 day category as the fourth quarter is traditionally a difficult collection quarter. Our collection staff and market
personnel are to be commended for this performance. Net charge-offs for the quarter were $2.6 million, or 0.75% annualized. For
the year, net charge-offs totaled approximately $9.3 million as compared to approximately $12.5 million recorded for 2010. The
provision for the fourth quarter and 12 months ended December 31, 2011, totaled $2.4 million and $9.1 million, respectively, which
compares favorably to the provision for loan losses for the fourth quarter and 12 months ended December 31, 2010, of $3.7 million
and $14.8 million, respectively. The allowance for loan and lease losses measured $26.2 million, or 1.88% of total loans, at year-end
as compared to $26.4 million, or 1.92%, and $26.5 million, or 1.91%, as of 3rd quarter and year-end 2010, respectively.
The year-end OREO balance of $5.9 million was
flat compared to third quarter, while representing an increase of $1.0 million over year-end 2010. While foreclosure activity remains
relatively consistent with previous quarters, I anticipate sales activity within the winter season may decline resulting in some
upward movement in OREO balances over the next quarter or so.
Forward-Looking Statements
This Current Report
on Form 8-K, including the exhibits hereto,
may include 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 Company's 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.
3
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.
FIRST COMMUNITY BANCSHARES, INC.
Date:
January 27, 2012
By:
/s/ David D. Brown
David D. Brown
Chief Financial Officer
4