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First Community Bankshares, Inc. Announces Fourth Quarter Results, Quarterly Cash Dividend, and Stock Repurchase Plan
Источник: Nasdaq GlobeNewswire / 26 янв 2021 16:30:01 America/New_York
BLUEFIELD, Va., Jan. 26, 2021 (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, 2020. The Company reported net income of $11.55 million, or $0.65 per diluted common share, for the quarter ended December 31, 2020, which was an increase of $0.04, or 6.56%, over the same quarter of 2019. Net income was $35.93 million, or $2.02 per diluted common share, for the twelve months ended December 31, 2020, which represents a 17.89% decrease in per share diluted earnings compared to the same period of 2019.
The Company also declared a quarterly cash dividend to common shareholders of twenty-five cents ($0.25) per common share. The quarterly dividend is payable to common shareholders of record on February 5, 2021, and is expected to be paid on or about February 19, 2021. The current year is the 11th consecutive year of regular dividend increases and the 36th consecutive year of regular dividends to common shareholders.
Additionally, today the Board of Directors authorized the repurchase of up to 2.4 million shares of the Company’s outstanding common stock through January 26, 2024. Repurchases may be made through open market purchases or in privately negotiated transactions at prevailing market prices. The actual means and timing of any purchases, target number of shares and range of prices under the program will be determined by management in its discretion and will depend on a number of factors, including the market price of the shares, general market and economic conditions, share issuances under equity plans, and applicable legal requirements and other conditions.
Fourth Quarter 2020 and Current Highlights
- General
- The Company booked $63.56 million of new residential mortgage loans during the fourth quarter and the pipeline remains strong at $38.15 million on January 25, 2021.
- As of December 31, 2020, $3.94 million, or 6.46%, of the Company’s Paycheck Protection Program loan balances had been forgiven by the SBA.
- As of December 31, 2020, current commercial and consumer COVID-19 loan deferrals stood at $26.54 million and $5.72 million, respectively, down significantly from $436.11 million at June 30, 2020.
- On December 31, 2020, the Company closed two branches located in Abingdon, Virginia, acquired in the Highlands Union Bank transaction last year. The Company will continue to serve its customers in the important Abingdon market through two strategically placed branches, including its recently upgraded and remodeled Main Street branch, significantly improving efficiency while maintaining first-rate market presence.
- Income Statement
- Return on average assets remained strong at 1.54% for the fourth quarter and 1.24% for the twelve-month period.
- Net interest margin decreased 29 basis points to 4.18% compared to the same quarter of 2019. Net interest margin decreased 30 basis points to 4.29% for the full year 2020 compared to 2019. Both period decreases are reflective of the current historic low interest rate environment partially offset by an increase in accelerated accretion of $3.73 million for the quarter and $6.23 million for the year.
- Fourth quarter earnings reflect a loan loss provision of $634 thousand, an increase of $543 thousand over fourth quarter of 2019.
- Balance Sheet
- Interest-free deposits grew $144.93 million during 2020, and total deposits grew $216.34 million, or 9.29%, during 2020.
- Book value per share at December 31, 2020, was $24.08, an increase of $0.75 during the year.
- As of December 31, 2020, the Company continues to significantly exceed regulatory “well capitalized” targets, as well as all capital targets of its capital management plan.
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%. 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 50 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of December 31, 2020. First Community Bank offers wealth management and investment advice through its Trust Division and First Community Wealth Management, which collectively managed and administered $1.18 billion in combined assets as of December 31, 2020. The Company reported consolidated assets of $3.01 billion as of December 31, 2020. 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; 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 Twelve Months Ended December 31, September 30, June 30, March 31, December 31, December 31, (Amounts in thousands, except share and per share data) 2020 2020 2020 2020 2019 2020 2019 Interest income Interest and fees on loans $ 28,101 $ 27,297 $ 26,991 $ 28,058 $ 21,837 $ 110,447 $ 88,805 Interest on securities 549 609 713 918 870 2,789 3,716 Interest on deposits in banks 96 89 82 533 663 800 2,447 Total interest income 28,746 27,995 27,786 29,509 23,370 114,036 94,968 Interest expense Interest on deposits 1,029 1,161 1,445 1,825 1,312 5,460 5,392 Interest on borrowings - - 2 2 1 4 123 Total interest expense 1,029 1,161 1,447 1,827 1,313 5,464 5,515 Net interest income 27,717 26,834 26,339 27,682 22,057 108,572 89,453 Provision for loan losses 634 4,703 3,831 3,500 91 12,668 3,571 Net interest income after provision 27,083 22,131 22,508 24,182 21,966 95,904 85,882 Noninterest income 7,733 7,638 6,913 7,549 9,314 29,833 33,677 Noninterest expense 19,877 19,171 18,913 21,664 18,883 79,625 69,763 Income before income taxes 14,939 10,598 10,508 10,067 12,397 46,112 49,796 Income tax expense 3,389 2,332 2,270 2,195 2,833 10,186 10,994 Net income $ 11,550 $ 8,266 $ 8,238 $ 7,872 $ 9,564 $ 35,926 $ 38,802 Earnings per common share Basic $ 0.65 $ 0.47 $ 0.47 $ 0.44 $ 0.61 $ 2.02 $ 2.47 Diluted 0.65 0.47 0.46 0.44 0.61 2.02 2.46 Cash dividends per common share Regular 0.25 0.25 0.25 0.25 0.25 1.00 0.96 Weighted average shares outstanding Basic 17,717,356 17,710,283 17,701,853 17,998,994 15,611,093 17,781,748 15,690,812 Diluted 17,751,805 17,732,428 17,728,300 18,050,071 15,670,047 17,815,380 15,756,093 Performance ratios Return on average assets 1.54 % 1.11 % 1.15 % 1.16 % 1.71 % 1.24 % 1.75 % Return on average common equity 10.82 % 7.83 % 7.97 % 7.49 % 11.08 % 8.54 % 11.54 % Return on average tangible common equity(1) 15.96 % 11.62 % 11.91 % 11.12 % 15.33 % 12.68 % 16.09 % (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 Twelve Months Ended December 31, September 30, June 30, March 31, December 31, December 31, (Amounts in thousands) 2020 2020 2020 2020 2019 2020 2019 Noninterest income Wealth management $ 810 $ 909 $ 854 $ 844 $ 842 $ 3,417 $ 3,423 Service charges on deposits 3,478 3,250 2,560 3,731 3,702 13,019 14,594 Other service charges and fees 2,737 2,748 2,617 2,231 2,096 10,333 8,281 Net gain (loss) on sale of securities - - - 385 - 385 (43 ) Net FDIC indemnification asset amortization (338 ) (383 ) (483 ) (486 ) (590 ) (1,690 ) (2,377 ) Other income - - - - 2,395 - 6,995 Other operating income 1,046 1,114 1,365 844 869 4,369 2,804 Total noninterest income $ 7,733 $ 7,638 $ 6,913 $ 7,549 $ 9,314 $ 29,833 $ 33,677 Noninterest expense Salaries and employee benefits $ 11,119 $ 10,485 $ 11,015 $ 11,386 $ 9,495 $ 44,005 $ 37,148 Occupancy expense 1,225 1,228 1,275 1,315 1,057 5,043 4,334 Furniture and equipment expense 1,446 1,412 1,316 1,384 1,179 5,558 4,457 Service fees 1,232 1,581 1,329 1,523 721 5,665 4,448 Advertising and public relations 534 430 475 512 478 1,951 2,310 Professional fees 276 408 307 233 408 1,224 1,698 Amortization of intangibles 364 365 360 361 251 1,450 997 FDIC premiums and assessments 202 191 33 - - 426 318 Merger, acquisition, and divestiture expense - - - 1,893 1,532 1,893 2,124 Other operating expense 3,479 3,071 2,803 3,057 3,762 12,410 11,929 Total noninterest expense $ 19,877 $ 19,171 $ 18,913 $ 21,664 $ 18,883 $ 79,625 $ 69,763 RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited) Three Months Ended Twelve Months Ended December 31, September 30, June 30, March 31, December 31, December 31, 2020 2020 2020 2020 2019 2020 2019 (Amounts in thousands, except per share data) Net income $ 11,550 $ 8,266 $ 8,238 $ 7,872 $ 9,564 $ 35,926 $ 38,802 Adjustments: Net (gain) loss on sale of securities - - - (385 ) - (385 ) 43 Merger, acquisition, and divestiture expense - - - 1,893 1,532 1,893 2,124 Other items(1) - - - - (2,395 ) - (6,995 ) Total adjustments - - - 1,508 (863 ) 1,508 (4,828 ) Tax effect - - - 354 (331 ) 354 (1,343 ) Adjusted earnings, non-GAAP $ 11,550 $ 8,266 $ 8,238 $ 9,026 $ 9,032 $ 37,080 $ 35,317 Adjusted diluted earnings per common share, non-GAAP $ 0.65 $ 0.47 $ 0.46 $ 0.50 $ 0.58 $ 2.08 $ 2.24 Performance ratios, non-GAAP Adjusted return on average assets 1.54 % 1.11 % 1.15 % 1.33 % 1.61 % 1.28 % 1.59 % Adjusted return on average common equity 10.82 % 7.83 % 7.97 % 8.59 % 10.46 % 8.81 % 10.51 % Adjusted return on average tangible common equity(2) 15.96 % 11.62 % 11.91 % 12.75 % 14.48 % 13.08 % 14.65 % (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, 2020 2019 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) $ 2,188,069 $ 28,143 5.12 % $ 1,697,133 $ 21,876 5.11 % Securities available for sale 87,592 640 2.91 % 116,950 1,020 3.46 % Interest-bearing deposits 375,088 99 0.11 % 159,904 663 1.64 % Total earning assets 2,650,749 28,882 4.33 % 1,973,987 23,559 4.73 % Other assets 337,906 249,300 Total assets $ 2,988,655 $ 2,223,287 Liabilities and stockholders' equity Interest-bearing deposits Demand deposits $ 594,222 $ 50 0.03 % $ 463,235 $ 88 0.08 % Savings deposits 739,312 112 0.06 % 509,540 234 0.18 % Time deposits 428,849 867 0.80 % 393,424 989 1.00 % Total interest-bearing deposits 1,762,383 1,029 0.23 % 1,366,199 1,311 0.38 % Borrowings Retail repurchase agreements 925 - 1 0.14 % 1,515 - 0.00 % FHLB advances and other borrowings - - - - - - Total borrowings 925 1 0.14 % 1,515 - 0.00 % Total interest-bearing liabilities 1,763,308 1,030 0.23 % 1,367,714 1,311 0.38 % Noninterest-bearing demand deposits 763,412 480,096 Other liabilities 37,305 32,957 Total liabilities 2,564,025 1,880,767 Stockholders' equity 424,630 342,520 Total liabilities and stockholders' equity $ 2,988,655 $ 2,223,287 Net interest income, FTE(1) $ 27,852 $ 22,248 Net interest rate spread 4.10 % 4.36 % Net interest margin, FTE(1) 4.18 % 4.47 % (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 $4.24 million and $511 thousand for the three months ended December 31, 2020 and 2019, respectively. AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited) Twelve Months Ended December 31, 2020 2019 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) $ 2,142,637 $ 110,619 5.16 % $ 1,722,419 $ 88,990 5.17 % Securities available for sale 105,005 3,259 3.10 % 126,732 4,334 3.42 % Securities held to maturity - - - 3,045 45 1.48 % Interest-bearing deposits 296,495 805 0.27 % 116,119 2,447 2.10 % Total earning assets 2,544,137 114,683 4.51 % 1,968,315 95,816 4.87 % Other assets 348,150 248,926 Total assets $ 2,892,287 $ 2,217,241 Liabilities and stockholders' equity Interest-bearing deposits Demand deposits $ 556,279 $ 311 0.06 % $ 453,824 $ 281 0.06 % Savings deposits 711,831 902 0.13 % 504,081 823 0.16 % Time deposits 456,755 4,247 0.93 % 418,450 4,288 1.02 % Total interest-bearing deposits 1,724,865 5,460 0.32 % 1,376,355 5,392 0.39 % Borrowings Retail repurchase agreements 1,145 - 3 0.28 % 2,471 4 0.14 % Wholesale repurchase agreements - - - 3,767 119 3.17 % FHLB advances and other borrowings 36 1 2.23 % - - - Total borrowings 1,181 4 0.34 % 6,238 123 1.96 % Total interest-bearing liabilities 1,726,046 5,464 0.32 % 1,382,593 5,515 0.40 % Noninterest-bearing demand deposits 707,623 468,774 Other liabilities 37,826 29,736 Total liabilities 2,471,495 1,881,103 Stockholders' equity 420,792 336,138 Total liabilities and stockholders' equity $ 2,892,287 $ 2,217,241 Net interest income, FTE(1) $ 109,219 $ 90,301 Net interest rate spread 4.19 % 4.47 % Net interest margin, FTE(1) 4.29 % 4.59 % (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 $9.46 million and $3.23 million for the twelve months ended December 31, 2020 and 2019, respectively. CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited) December 31, September 30, June 30, March 31, December 31, (Amounts in thousands, except per share data) 2020 2020 2020 2020 2019 Assets Cash and cash equivalents $ 456,561 $ 375,664 $ 421,492 $ 241,613 $ 217,009 Debt securities available for sale 83,358 90,972 98,367 107,753 169,574 Loans held for sale - - - - 263 Loans held for investment, net of unearned income Noncovered 2,176,952 2,184,251 2,125,560 2,084,610 2,101,599 Covered 9,680 10,744 11,257 12,115 12,861 Allowance for loan losses (26,182 ) (27,277 ) (23,758 ) (21,137 ) (18,425 ) Loans held for investment, net 2,160,450 2,167,718 2,113,059 2,075,588 2,096,035 FDIC indemnification asset 1,223 1,598 1,943 2,433 2,883 Premises and equipment, net 57,700 60,488 62,658 63,319 62,824 Other real estate owned, noncovered 2,083 2,103 2,181 2,502 3,969 Interest receivable 9,052 9,151 8,380 6,117 6,677 Goodwill 129,565 129,565 129,565 129,565 129,565 Other intangible assets 7,069 7,433 7,798 8,159 8,519 Other assets 104,075 103,236 103,623 101,912 101,529 Total assets $ 3,011,136 $ 2,947,928 $ 2,949,066 $ 2,738,961 $ 2,798,847 Liabilities Deposits Noninterest-bearing $ 772,795 $ 750,277 $ 752,899 $ 620,292 $ 627,868 Interest-bearing 1,773,452 1,741,962 1,744,947 1,668,122 1,702,044 Total deposits 2,546,247 2,492,239 2,497,846 2,288,414 2,329,912 Securities sold under agreements to repurchase 964 956 1,100 1,348 1,601 FHLB and other borrowings - - - 1,000 - Interest, taxes, and other liabilities 37,195 34,816 34,290 36,593 38,515 Total liabilities 2,584,406 2,528,011 2,533,236 2,327,355 2,370,028 Stockholders' equity Common stock 17,723 17,717 17,710 17,700 18,377 Additional paid-in capital 173,345 172,980 172,601 172,231 192,413 Retained earnings 237,585 230,464 226,627 222,814 219,535 Accumulated other comprehensive loss (1,923 ) (1,244 ) (1,108 ) (1,139 ) (1,506 ) Total stockholders' equity 426,730 419,917 415,830 411,606 428,819 Total liabilities and stockholders' equity $ 3,011,136 $ 2,947,928 $ 2,949,066 $ 2,738,961 $ 2,798,847 Shares outstanding at period-end 17,722,507 17,716,522 17,709,569 17,700,140 18,376,991 Book value per common share $ 24.08 $ 23.70 $ 23.48 $ 23.25 $ 23.33 Tangible book value per common share(1) 16.37 15.97 15.72 15.47 15.82 (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, March31, December 31, (Amounts in thousands) 2020 2020 2020 2020 2019 Allowance for Loan Losses Beginning balance $ 27,277 $ 23,758 $ 21,137 $ 18,425 $ 18,493 Provision for loan losses charged to operations 634 4,703 3,831 3,500 91 Charge-offs (2,194 ) (1,563 ) (1,672 ) (1,194 ) (1,353 ) Recoveries 465 379 462 406 1,194 Net charge-offs (1,729 ) (1,184 ) (1,210 ) (788 ) (159 ) Ending balance $ 26,182 $ 27,277 $ 23,758 $ 21,137 $ 18,425 Nonperforming Assets Non-covered nonperforming assets Nonaccrual loans $ 21,706 $ 24,423 $ 24,471 $ 20,263 $ 16,113 Accruing loans past due 90 days or more 295 43 284 329 144 Troubled debt restructurings ("TDRs")(1) 187 456 598 623 720 Total non-covered nonperforming loans 22,188 24,922 25,353 21,215 16,977 OREO 2,083 2,103 2,181 2,502 3,969 Total non-covered nonperforming assets $ 24,271 $ 27,025 $ 27,534 $ 23,717 $ 20,946 Covered nonperforming assets Nonaccrual loans $ 297 $ 333 $ 299 $ 145 $ 244 Total covered nonperforming loans 297 333 299 145 244 OREO - - - - - Total covered nonperforming assets $ 297 $ 333 $ 299 $ 145 $ 244 Additional Information Performing TDRs(2) $ 10,061 $ 10,480 $ 10,822 $ 8,429 $ 5,855 Total Accruing TDRs(3) 10,248 10,936 11,420 9,052 6,575 Non-covered ratios Nonperforming loans to total loans 1.02 % 1.14 % 1.19 % 1.02 % 0.81 % Nonperforming assets to total assets 0.81 % 0.92 % 0.94 % 0.87 % 0.75 % Non-PCI allowance to nonperforming loans 118.00 % 109.45 % 93.71 % 99.63 % 108.53 % Non-PCI allowance to total loans 1.20 % 1.25 % 1.12 % 1.01 % 0.88 % Annualized net charge-offs to average loans 0.26 % 0.22 % 0.23 % 0.15 % 0.04 % Total ratios Nonperforming loans to total loans 1.03 % 1.15 % 1.20 % 1.02 % 0.81 % Nonperforming assets to total assets 0.82 % 0.93 % 0.94 % 0.87 % 0.76 % Allowance for loan losses to nonperforming loans 116.44 % 108.01 % 92.62 % 98.96 % 106.99 % Allowance for loan losses to total loans 1.20 % 1.24 % 1.11 % 1.01 % 0.87 % Annualized net charge-offs to average loans 0.26 % 0.22 % 0.23 % 0.15 % 0.04 % (1) Accruing TDRs restructured within the past six months or nonperforming (2) Accruing TDRs with six months or more of satisfactory payment performance (3) Accruing total TDRs FOR MORE INFORMATION, CONTACT: David D. Brown (276) 326-9000 
- General