Overview

• US regional bank's Q2 adjusted EPS rose 13% yr/yr

• Net income for Q2 more than doubled, driven by Bearing Insurance stake sale

• Company raised quarterly dividend by 6% to $0.33 per share

Outlook

• Company did not provide specific guidance or outlook for future quarters or the full year

Result Drivers

• BEARING INSURANCE SALE - Q2 net income included a $10.39 mln pre-tax gain from the sale of the company's stake in Bearing Insurance

• NET INTEREST INCOME - Higher net interest income was driven by increased average earning assets and lower funding cost yields, aided by the Hometown Bancshares acquisition

• NONINTEREST INCOME - Noninterest income rose mainly due to the Bearing Insurance gain

Company press release: ID:nGNX8mvm0Y

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Adjusted EPS	Beat	$0.76	$0.74 (2 Analysts)
Q2 EPS		$1.19
Q2 Adjusted Net Income	Beat	$14.39 mln	$13.49 mln (1 Analyst)
Q2 Net Income		$22.51 mln
Q2 Net Interest Income		$34.88 mln
Q2 Pretax Profit		$29.17 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for First Community Bankshares Inc is $45.00, about 0.8% above its July 20 closing price of $44.66

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• July 20 - Wintrust Q2 net interest income rises on growth in average earning assets

• July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

• July 20 - WR Berkley’s Q2 ex comp rate increase slows to 3.8% in ‘fragmented market’: CEO

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