The top executives for First Community Bancshares Inc. either received a slight or no increase in salary for 2009, the bank reported in a regulatory filing.
The executives also did not receive a bonus for the second consecutive year.
The bank, based in Bluefield, Va., has six branches in Forsyth County after buying TriStone Community Bank and its two branches last August.
John Mendez, the bank's chief executive and president, made $392,902 in salary.
He also received $49,552 in all other compensation that included $21,970 in matching contributions to his retirement plan, $12,580 in perks that included country-club dues ($4,180) and a car allowance ($8,400), and $11,905 that the company paid for life-insurance premiums.
The bank finished 2009 with two consecutive major quarterly losses related to decisions to sell and write down groups of preferred securities. Excluding the write-downs, however, the bank reported modest profits in the third and fourth quarters.
Mendez said in January that the securities sales will enable the bank to "move beyond the substantial distraction associated with these securities and devote our full attention to the business of banking."
In July, the bank became one of the first community banks in the country to pay back the money obtained through the capital-purchase program of the U.S. Treasury. It repaid the $41.5 million, along with $305,000 in accrued and unpaid dividends, primarily through a public-stock offering in June that raised $62 million.
"Given the conservative nature of our organization and the fact that we did realize a net loss last year, even though it was tied to bond write-downs during 2009 and not our core earnings, we felt it was in the best interest of our stockholders to hold the line on executive salaries and not provide executive bonuses," Mendez said in a statement.
"First Community Bank remains well-capitalized and is still one of the top midtier banks in the country from a core return and asset quality standpoint," he said. "It is decisions like this that help us maintain that position."
Stephen Lilly, the bank's chief operating officer, had no raise in his salary of $235,000 and $44,955 in all other compensation.
rcraver@wsjournal.com | 727-7376
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