First Community Bankshares, Inc. Announces Fourth Quarter and Full Year 2024 Results, Quarterly Cash Dividend, and Special Dividend

January 28, 2025 16:00 ET | Source: First Community Bankshares, Inc. BLUEFIELD, Va., Jan. 28, 2025 (GLOBE NEWSWIRE) -- First Community Bankshares, Inc. (NASDAQ: FCBC) (www.firstcommunitybank.com) (the “Company”) today reported its unaudited results of operations and other financial information for the quarter ended December 31, 2024. The Company reported net income of $13.04 million, or $0.71 per diluted common share, for the quarter ended December 31, 2024. Net income for the twelve months ended December 31, 2024, was $51.60 million or $2.80 per diluted common share. The Company also declared a quarterly cash dividend to common shareholders of thirty-one cents, $0.31 per common share. The quarterly dividend is payable to common shareholders of record on February 14, 2025, and is expected to be paid on February 28, 2025. This marks the 40th consecutive year of regular dividends to common shareholders. Additionally, the Board of Directors declared a special cash dividend to common shareholders of $2.07 per common share. The Company’s capital management plan and philosophy require the maintenance of a strong capital base from which to grow and serve its customers. As part of the capital plan, the Company intends to return current earnings not needed to fund growth in core operations or other uses back to shareholders through regular cash dividends and stock repurchases. To the extent current earnings exceed those capital uses, the Company may declare special dividends from time to time. The Company earned approximately $197.45 million in the last four years, from which it paid regular dividends of $79.68 million, and repurchased shares for $81.95 million. Since July 1, 2013, the Company earned approximately $415.90 million, from which it paid regular dividends of $174.84 million, special dividends of $8.12 million, and repurchased 9.33 million shares for $232.08 million The Board of Directors determined that the Company will have sufficient surplus capital to support anticipated growth opportunities and other needs after payment of the special dividend totaling approximately $37.92 million. This special cash dividend is also payable on February 28, 2025, to shareholders of record February 14, 2025, and may not be indicative of special cash dividend activity in the future. Fourth Quarter 2024 Highlights Income Statement Net income of $13.04 million for the fourth quarter of 2024, was a increase of $1.26 million, or 10.65%, from the same quarter of 2023. Net income of $51.60 million for the year, was an increase of $3.58 million, or 7.46%, from the same period of 2023.Net interest income decreased $730 thousand compared to the same quarter in 2023, primarily due to increases in rates paid on interest-bearing deposits.Net interest margin of 4.36% was a decrease of 6 basis points over the same quarter of 2023. The yield on earning assets increased 11 basis points from the same period of 2023 and is primarily attributable to an increase in interest income of $422 thousand. Interest income on interest-bearing deposits with banks increased $2.91 million and was primarily due to the increase in the average balance of $246.39 million offset by a decrease in yield of 75 basis points. This increase in interest income was offset by decreases in interest income for loans and securities available-for-sale of $2.04 million and $450 thousand, respectively. The decreases were primarily due to decreases in the average balance for loans and securities available-for-sale of $159.86 million and $107.16 million offset by increases in yield of 2 basis points and 72 basis points, respectively. Interest expense on interest-bearing liabilities increased $1.16 million and is primarily attributable to yield. The yield on interest-bearing liabilities increased 26 basis points when compared with the same period of 2023 and is primarily attributable to increased rates on interest-bearing deposit liabilities.Noninterest income decreased approximately $125 thousand, or 1.19%, when compared to the same quarter of 2023. Noninterest expense decreased $2.67 million, or 9.98% when compared to the same period of 2023. The decrease is primarily attributable to litigation expense of $3.00 million recorded in the fourth quarter of 2023.Annualized return on average assets ("ROA") was 1.60% for both the fourth quarter and for the twelve months of 2024 compared to 1.43% and 1.48% for the same periods, respectively, of 2023. Annualized return on average common equity ("ROE") was 9.89% for the fourth quarter of 2024 and 10.03% for the year compared to 9.39% and 10.02% for the same periods, respectively, of 2023. Annualized return on average tangible common equity ("ROTCE") was 14.12% for the fourth quarter of 2024 and 14.48% for the year compared to 13.82% and 14.65% for the same periods, respectively, of 2023. Balance Sheet and Asset Quality Consolidated assets totaled $3.26 billion at December 31, 2024.Loans decreased $156.21 million, or 6.07%, from December 31, 2023. Securities available for sale decreased $111.12 million, or 39.55%, from December 31, 2023. Deposits decreased $31.08 million, or 1.14%. The net effect of these balance sheet changes resulted in an increase in cash and cash equivalents of $261.03 million, or 224.22%.The Company did not repurchase any common shares during the fourth quarter of 2024. The Company repurchased 257,294 common shares during 2024 at a total cost of $8.72 million.Non-performing loans to total loans increased to 0.83% when compared with the same quarter of 2023. The Company experienced net charge-offs for the fourth quarter of 2024 of $1.48 million, or 0.24% of annualized average loans, compared to net charge-offs of $883 thousand, or 0.14%, of annualized average loans for the same period in 2023.The allowance for credit losses to total loans was 1.44% at December 31, 2024, compared to 1.41% at December 31, 2023.Book value per share at December 31, 2024, was $ 28.73, an increase of $1.53 from year-end 2023. Non-GAAP Financial Measures In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this news release include “tangible book value per common share,” “return on average tangible common equity,” “adjusted earnings,” “adjusted diluted earnings per share,” “adjusted return on average assets,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” and certain financial measures presented on a fully taxable equivalent (“FTE”) basis. FTE basis is calculated using the federal statutory income tax rate of 21%. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to that comparable GAAP financial measure can be found in the attached tables to this press release. While the Company believes certain non-GAAP financial measures enhance the understanding of its business and performance, they are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions. About First Community Bankshares, Inc. First Community Bankshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 53 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of December 31, 2024. First Community Bank offers wealth management and investment advice and services through its Trust Division and through its wholly owned subsidiary, First Community Wealth Management, which collectively managed and administered $1.62 billion in combined assets as of December 31, 2024. The Company reported consolidated assets of $3.26 billion as of December 31, 2024. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. Additional investor information is available on the Company’s website at www.firstcommunitybank.com. This news release 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; changes in banking laws and regulations; the degree of competition by traditional and non-traditional competitors; the impact of natural disasters, extreme weather events, military conflict , terrorism or other geopolitical events; 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 fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Year Ended December 31, September 30, June 30, March 31, December 31, December 31, (Amounts in thousands, except share and per share data) 2024 2024 2024 2024 2023 2024 2023 Interest income Interest and fees on loans $31,637 $32,120 $32,696 $33,418 $33,676 $129,871 $126,727 Interest on securities 1,447 1,070 1,211 1,698 1,888 5,426 7,956 Interest on deposits in banks 3,348 3,702 2,882 913 438 10,845 2,482 Total interest income 36,432 36,892 36,789 36,029 36,002 146,142 137,165 Interest expense Interest on deposits 5,099 5,298 4,877 4,365 3,935 19,639 9,341 Interest on borrowings - - - 35 4 35 140 Total interest expense 5,099 5,298 4,877 4,400 3,939 19,674 9,481 Net interest income 31,333 31,594 31,912 31,629 32,063 126,468 127,684 Provision for credit losses 1,082 1,360 144 1,011 1,029 3,597 7,985 Net interest income after provision 30,251 30,234 31,768 30,618 31,034 122,871 119,699 Noninterest income 10,337 10,452 9,342 9,259 10,462 39,390 37,452 Noninterest expense 24,107 24,177 24,897 23,386 26,780 96,567 95,177 Income before income taxes 16,481 16,509 16,213 16,491 14,716 65,694 61,974 Income tax expense 3,441 3,476 3,527 3,646 2,932 14,090 13,954 Net income $13,040 $13,033 $12,686 $12,845 $11,784 $51,604 $48,020 Earnings per common share Basic $0.71 $0.71 $0.69 $0.70 $0.64 $2.81 $2.67 Diluted $0.71 $0.71 $0.71 $0.71 $0.66 $2.80 $2.72 Cash dividends per common share Regular 0.31 0.31 0.29 0.29 0.29 1.20 1.16 Weighted average shares outstanding Basic 18,299,612 18,279,612 18,343,958 18,476,128 18,530,114 18,349,498 17,996,373 Diluted 18,418,441 18,371,907 18,409,876 18,545,910 18,575,226 18,430,206 18,027,151 Performance ratios Return on average assets 1.60% 1.60% 1.58% 1.60% 1.43% 1.60% 1.48%Return on average common equity 9.89% 10.04% 10.02% 10.18% 9.39% 10.03% 10.02%Return on average tangible common equity(1) 14.12% 14.46% 14.54% 14.82% 13.82% 14.48% 14.65% _____________ (1) A non-GAAP financial measure defined as net income divided by average stockholders' equity less average goodwill and other intangible assets. CONDENSED CONSOLIDATED QUARTERLY NONINTEREST INCOME AND EXPENSE (Unaudited) Three Months Ended Year Ended December 31, September 30, June 30, March 31, December 31, December 31, (Amounts in thousands) 2024 2024 2024 2024 2023 2024 2023 Noninterest income Wealth management $1,251 $1,071 $1,064 $1,099 $1,052 $4,485 $4,179 Service charges on deposits 3,613 3,661 3,428 3,310 3,637 14,012 13,996 Other service charges and fees 3,575 3,697 3,670 3,450 3,541 14,392 13,647 (Loss) gain on sale of securities - - - - - - (21)Other operating income 1,898 2,023 1,180 1,400 2,232 6,501 5,651 Total noninterest income $10,337 $10,452 $9,342 $9,259 $10,462 $39,390 $37,452 Noninterest expense Salaries and employee benefits $13,501 $13,129 $12,491 $12,581 $12,933 $51,702 $49,887 Occupancy expense 1,329 1,270 1,309 1,378 1,252 5,286 4,967 Furniture and equipment expense 1,562 1,574 1,687 1,545 1,489 6,368 5,878 Service fees 2,305 2,461 2,427 2,449 2,255 9,642 8,908 Advertising and public relations 1,165 967 933 796 843 3,861 3,300 Professional fees 295 221 330 372 787 1,218 1,567 Amortization of intangibles 535 536 530 530 536 2,131 1,731 FDIC premiums and assessments 365 365 364 369 376 1,463 1,511 Merger expense - - - - - - 2,393 Litigation expense - - 1,800 - 3,000 1,800 3,000 Other operating expense 3,050 3,654 3,026 3,366 3,309 13,096 12,035 Total noninterest expense $24,107 $24,177 $24,897 $23,386 $26,780 $96,567 $95,177 RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited) Three Months Ended Year Ended December 31, September 30, June 30, March 31, December 31, December 31, (Amounts in thousands, except per share data) 2024 2024 2024 2024 2023 2024 2023 Adjusted Net Income for diluted earnings per share $13,040 $13,033 $12,686 $12,845 $12,314 $51,604 $49,120 Non-GAAP adjustments: Loss (gain) on sale of securities - - - - - - 21 Merger expense - - - - - - 2,393 Day 2 provision for allowance for credit losses - Surrey - - - - - - 1,614 Litigation expense - - 1,800 - 3,000 1,800 3,000 Other items(1) - (825) - - - (825) (204)Total adjustments - (825) 1,800 - 3,000 975 6,824 Tax effect - (198) 432 - 720 234 1,203 Adjusted earnings, non-GAAP $13,040 $12,406 $14,054 $12,845 $14,594 $52,345 $54,741 Adjusted diluted earnings per common share, non-GAAP $0.71 $0.68 $0.76 $0.69 $0.79 $2.84 $3.04 Performance ratios, non-GAAP Adjusted return on average assets 1.60% 1.53% 1.75% 1.60% 1.77% 1.62% 1.68%Adjusted return on average common equity 9.89% 9.56% 11.10% 10.18% 11.63% 10.18% 11.43%Adjusted return on average tangible common equity (2) 14.12% 13.77% 16.11% 14.82% 17.11% 14.69% 16.70% _____________ (1) Includes other non-recurring income and expense items.(2) A non-GAAP financial measure defined as adjusted earnings divided by average stockholders' equity less average goodwill and other intangible assets. AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited) Three Months Ended December 31, 2024 2023 Average Average Yield/ Average Average Yield/ (Amounts in thousands) Balance Interest(1) Rate(1) Balance Interest(1) Rate(1) Assets Earning assets Loans(2)(3) $2,421,668 $31,717 5.21% $2,581,528 $33,758 5.19%Securities available for sale 167,357 1,474 3.50% 274,513 1,924 2.78%Interest-bearing deposits 277,678 3,351 4.80% 31,293 438 5.55%Total earning assets 2,866,703 36,542 5.07% 2,887,334 36,120 4.96%Other assets 379,566 379,960 Total assets $3,246,269 $3,267,294 Liabilities and stockholders' equity Interest-bearing deposits Demand deposits $663,033 $226 0.14% $697,555 $180 0.10%Savings deposits 886,886 3,476 1.56% 838,455 3,050 1.44%Time deposits 242,899 1,396 2.29% 254,668 705 1.10%Total interest-bearing deposits 1,792,818 5,098 1.13% 1,790,678 3,935 0.87%Borrowings Federal funds purchased - - - 293 4 5.35%Retail repurchase agreements 995 1 0.05% 1,090 - 0.05%Total borrowings 995 1 0.05% 1,383 4 0.87%Total interest-bearing liabilities 1,793,813 5,099 1.13% 1,792,061 3,939 0.87%Noninterest-bearing demand deposits 881,767 931,681 Other liabilities 46,142 45,819 Total liabilities 2,721,722 2,769,561 Stockholders' equity 524,547 497,733 Total liabilities and stockholders' equity $3,246,269 $3,267,294 Net interest income, FTE(1) $31,443 $32,181 Net interest rate spread 3.94% 4.09%Net interest margin, FTE(1) 4.36% 4.42% _____________ (1) Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%.(2) Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual.(3) Interest on loans includes non-cash and accelerated purchase accounting accretion of $863 thousand and $792 thousand for the three months ended December 31, 2024 and 2023, respectively. AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited) Year Ended December 31, 2024 2023 Average Average Yield/ Average Average Yield/ (Amounts in thousands) Balance Interest(1) Rate(1) Balance Interest(1) Rate(1) Assets Earning assets Loans(2)(3) $2,481,215 $130,196 5.25% $2,538,361 $127,019 5.00%Securities available for sale 171,081 5,547 3.24% 298,389 8,115 2.72%Interest-bearing deposits 206,629 10,850 5.25% 46,601 2,485 5.33%Total earning assets 2,858,925 146,593 5.13% 2,883,351 137,619 4.77%Other assets 374,398 369,700 Total assets $3,233,323 $3,253,051 Liabilities and stockholders' equity Interest-bearing deposits Demand deposits $662,584 $796 0.12% $686,534 $405 0.06%Savings deposits 878,584 14,206 1.62% 847,397 6,781 0.80%Time deposits 246,035 4,636 1.88% 267,957 2,155 0.80%Total interest-bearing deposits 1,787,203 19,638 1.10% 1,801,888 9,341 0.52%Borrowings Federal funds purchased 628 35 5.53% 2,715 139 5.12%Retail repurchase agreements 1,045 1 0.05% 1,528 1 0.06%Total borrowings 1,673 36 2.15% 4,243 140 3.30%Total interest-bearing liabilities 1,788,876 19,674 1.10% 1,806,131 9,481 0.52%Noninterest-bearing demand deposits 882,700 926,378 Other liabilities 47,362 41,477 Total liabilities 2,718,938 2,773,986 Stockholders' equity 514,385 479,065 Total liabilities and stockholders' equity $3,233,323 $3,253,051 Net interest income, FTE(1) $126,919 $128,138 Net interest rate spread 4.03% 4.25%Net interest margin, FTE(1) 4.44% 4.44% _____________ (1) Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%.(2) Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual.(3) Interest on loans includes non-cash and accelerated purchase accounting accretion of $2.90 million and $2.74 million for the twelve months ended December 31, 2024 and 2023, respectively. CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited) December 31, September 30, June 30, March 31, December 31, (Amounts in thousands, except per share data) 2024 2024 2024 2024 2023 Assets Cash and cash equivalents $377,454 $315,338 $329,877 $248,905 $116,420 Debt securities available for sale, at fair value 169,849 166,669 129,686 166,247 280,961 Loans held for investment, net of unearned income 2,416,089 2,444,113 2,473,268 2,519,833 2,572,298 Allowance for credit losses (34,825) (35,118) (34,885) (35,461) (36,189)Loans held for investment, net 2,381,264 2,408,995 2,438,383 2,484,372 2,536,109 Premises and equipment, net 48,735 49,654 50,528 51,333 50,680 Other real estate owned 521 346 100 374 192 Interest receivable 9,207 9,883 9,984 10,719 10,881 Goodwill 143,946 143,946 143,946 143,946 143,946 Other intangible assets 13,014 13,550 14,085 14,615 15,145 Other assets 117,226 115,980 116,230 115,470 114,211 Total assets $3,261,216 $3,224,361 $3,232,819 $3,235,981 $3,268,545 Liabilities Deposits Noninterest-bearing $883,499 $869,723 $889,462 $902,396 $931,920 Interest-bearing 1,807,748 1,789,530 1,787,810 1,779,819 1,790,405 Total deposits 2,691,247 2,659,253 2,677,272 2,682,215 2,722,325 Securities sold under agreements to repurchase 906 954 894 1,006 1,119 Interest, taxes, and other liabilities 42,671 43,460 45,769 45,816 41,807 Total liabilities 2,734,824 2,703,667 2,723,935 2,729,037 2,765,251 Stockholders' equity Common stock 18,322 18,291 18,270 18,413 18,502 Additional paid-in capital 169,752 168,691 168,272 173,041 175,841 Retained earnings 349,489 342,121 334,756 327,389 319,902 Accumulated other comprehensive loss (11,171) (8,409) (12,414) (11,899) (10,951)Total stockholders' equity 526,392 520,694 508,884 506,944 503,294 Total liabilities and stockholders' equity $3,261,216 $3,224,361 $3,232,819 $3,235,981 $3,268,545 Shares outstanding at period-end 18,321,795 18,290,938 18,270,273 18,413,088 18,502,396 Book value per common share $28.73 $28.47 $27.85 $27.53 $27.20 Tangible book value per common share(1) 20.16 19.86 19.20 18.92 18.60 _____________ (1 ) A non-GAAP financial measure defined as stockholders' equity less goodwill and other intangible assets, divided by shares outstanding. SELECTED CREDIT QUALITY INFORMATION (Unaudited) December 31, September 30, June 30, March 31, December 31, (Amounts in thousands) 2024 2024 2024 2024 2023 Allowance for Credit Losses Balance at beginning of period: Allowance for credit losses - loans $35,118 $34,885 $35,461 $36,189 $36,031 Allowance for credit losses - loan commitments 441 441 746 746 758 Total allowance for credit losses beginning of period 35,559 35,326 36,207 36,935 36,789 Provision for credit losses: Provision for credit losses - loans 1,182 1,360 449 1,011 1,041 (Recovery of) provision for credit losses - loan commitments (100) - (305) - (12)Total provision for credit losses - loans and loan commitments 1,082 1,360 144 1,011 1,029 Charge-offs (2,005) (1,799) (1,599) (2,448) (2,105)Recoveries 530 672 574 709 1,222 Net (charge-offs) recoveries (1,475) (1,127) (1,025) (1,739) (883)Balance at end of period: Allowance for credit losses - loans 34,825 35,118 34,885 35,461 36,189 Allowance for credit losses - loan commitments 341 441 441 746 746 Ending balance $35,166 $35,559 $35,326 $36,207 $36,935 Nonperforming Assets Nonaccrual loans $19,869 $19,754 $19,815 $19,617 $19,356 Accruing loans past due 90 days or more 149 176 19 30 104 Modified loans past due 90 days or more 135 - - - - Total nonperforming loans 20,153 19,930 19,834 19,647 19,460 OREO 521 346 100 374 192 Total nonperforming assets $20,674 $20,276 $19,934 $20,021 $19,652 Additional Information Total modified loans $2,260 $2,320 $2,290 $2,177 $1,873 Asset Quality Ratios Nonperforming loans to total loans 0.83% 0.82% 0.80% 0.78% 0.76%Nonperforming assets to total assets 0.63% 0.63% 0.62% 0.62% 0.60%Allowance for credit losses to nonperforming loans 172.80% 176.21% 175.88% 180.49% 185.97%Allowance for credit losses to total loans 1.44% 1.44% 1.41% 1.41% 1.41%Annualized net charge-offs (recoveries) to average loans 0.24% 0.18% 0.16% 0.27% 0.14% FOR MORE INFORMATION, CONTACT:David D. Brown(276) 326-9000

First Community Bankshares, Inc. Announces Fourth Quarter and Full Year 2024 Results, Quarterly Cash Dividend, and Special Dividend

FAQ

Why Bullish?

How important is it?

Why Short Term?

Related Companies

Related News