• First Community Bankshares, Inc. Announces First Quarter 2025 Results and Quarterly Cash Dividend

    Источник: Nasdaq GlobeNewswire / 22 апр 2025 15:00:40   America/Chicago

    BLUEFIELD, Va., April 22, 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 March 31, 2025. The Company reported net income of $11.82 million, or $0.64 per diluted common share, for the quarter ended March 31, 2025.  

    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 May 9, 2025, and is expected to be paid on May 23, 2025. This year marks the 40th consecutive year of regular dividends to common shareholders and the prior year was the 15th consecutive year of regular dividend increases.

    First Quarter 2025 Highlights

    Income Statement

    • Net interest margin for the first quarter of 2025 was 4.34%.  The yield on earning assets decreased 5 basis points from the same period of 2024 and is primarily attributable to a decrease in interest income of $867 thousand.  Interest income for loans and securities available-for-sale decreased $2.74 million and $470 thousand, respectively.  The decreases were primarily due to decreases in the average balance for loans and securities available-for-sale of $154.04 million and $89.74 million, respectively.  Additionally, the yield on loans decreased 8 basis points.  The decrease in interest income on loans and securities available-for-sale was somewhat offset by an increase in interest income on interest-bearing deposits with banks.  Interest expense on interest-bearing liabilities increased $472 thousand and is primarily attributable to an increase in yield of 11 basis points.
    • Noninterest income increased approximately $970 thousand, or 10.48%, when compared to the same quarter of 2024.  The increase is primarily attributable to an increase in service charges on deposits of $526 thousand, or 15.89%, and an increase in other operating income of $491 thousand, or 35.07%.  Noninterest expense increased $1.56 million, or 6.66% when compared to the same period of 2024.  The increase is primarily attributable to an increase in salaries and benefits of $754 thousand, or 5.99%.
    • Annualized return on average assets ("ROA") was 1.49% for the first quarter of 2025 compared to 1.60% for the same period of 2024. Annualized return on average common equity ("ROE") was 9.49% for the first quarter of 2025 compared to 10.18%  for the same period of 2024.  

    Balance Sheet and Asset Quality

    • Consolidated assets totaled $3.23 billion at March 31, 2025.
    • Loans decreased $33.39 million, or 1.38%, from December 31, 2024.  Securities available for sale decreased $40.19 million, or 23.66%, from December 31, 2024.  Deposits decreased $6.77 million, or 0.25%, which was largely a function of declining higher-rate time deposits.  Stockholder equity decreased $29.98 million, or 5.69% due to the payment of a special cash dividend in the first quarter of 2025.  The net effect of these balance sheet changes resulted in an increase in cash and cash equivalents of $37.23 million, or 9.86%.  
    • The Company did not repurchase any common shares during the first quarter of 2025.
    • Non-performing loans to total loans increased to 0.85% when compared with the same quarter of 2024.  The Company experienced net charge-offs for the first quarter of 2025 of $1.39 million, or 0.24% of annualized average loans, compared to net charge-offs of $1.74 million, or 0.27%, of annualized average loans for the same period in 2024. 
    • The allowance for credit losses to total loans was 1.42% at March 31, 2025, compared to 1.44% at December 31, 2024 and 1.41% at March 31, 2024. 
    • Book value per share at March 31, 2025, was $ 27.09, a decrease of $1.64 from year-end 2024.  The decrease is primarily attributable to the payment of the special cash dividend in the first quarter of 2025 of $2.07 per share totaling approximately $37.93 million.

    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 March 31, 2025. 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 March 31, 2025. The Company reported consolidated assets of $3.23 billion as of March 31, 2025. 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 
      March 31,
    2025
    		  December 31,
    2024
    		  September 30,
    2024
    		  June 30,
    2024
    		  March 31,
    2024
    		 
    (Amounts in thousands, except share and per share data)          
    Interest income                    
    Interest and fees on loans $30,669  $31,637  $32,120  $32,696  $33,418 
    Interest on securities  1,238   1,447   1,070   1,211   1,698 
    Interest on deposits in banks  3,262   3,348   3,702   2,882   913 
    Total interest income  35,169   36,432   36,892   36,789   36,029 
    Interest expense                    
    Interest on deposits  4,871   5,099   5,298   4,877   4,365 
    Interest on borrowings  -   -   -   -   35 
    Total interest expense  4,871   5,099   5,298   4,877   4,400 
    Net interest income  30,298   31,333   31,594   31,912   31,629 
    Provision for credit losses  321   1,082   1,360   144   1,011 
    Net interest income after provision  29,977   30,251   30,234   31,768   30,618 
    Noninterest income  10,229   10,337   10,452   9,342   9,259 
    Noninterest expense  24,944   24,107   24,177   24,897   23,386 
    Income before income taxes  15,262   16,481   16,509   16,213   16,491 
    Income tax expense  3,444   3,441   3,476   3,527   3,646 
    Net income $11,818  $13,040  $13,033  $12,686  $12,845 
                         
                         
    Earnings per common share                    
    Basic $0.64  $0.71  $0.71  $0.69  $0.70 
    Diluted $0.64  $0.71  $0.71  $0.71  $0.71 
    Cash dividends per common share                    
    Regular  0.31   0.31   0.31   0.29   0.29 
    Special cash dividend  2.07   -   -   -   - 
    Weighted average shares outstanding                    
    Basic  18,324,760   18,299,612   18,279,612   18,343,958   18,476,128 
    Diluted  18,451,321   18,418,441   18,371,907   18,409,876   18,545,910 
    Performance ratios                    
    Return on average assets  1.49%  1.60%  1.60%  1.58%  1.60%
    Return on average common equity  9.49%  9.89%  10.04%  10.02%  10.18%
    Return on average tangible common equity(1)  13.79%  14.12%  14.46%  14.54%  14.82%

    _____________

    (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 
      March 31,
    2025
    		  December 31,
    2024
    		  September 30,
    2024
    		  June 30,
    2024
    		  March 31,
    2024
    		 
    (Amounts in thousands)          
    Noninterest income                    
    Wealth management $1,162  $1,251  $1,071  $1,064  $1,099 
    Service charges on deposits  3,836   3,613   3,661   3,428   3,310 
    Other service charges and fees  3,340   3,575   3,697   3,670   3,450 
    Other operating income  1,891   1,898   2,023   1,180   1,400 
    Total noninterest income $10,229  $10,337  $10,452  $9,342  $9,259 
    Noninterest expense                    
    Salaries and employee benefits $13,335  $13,501  $13,129  $12,491  $12,581 
    Occupancy expense  1,576   1,329   1,270   1,309   1,378 
    Furniture and equipment expense  1,575   1,562   1,574   1,687   1,545 
    Service fees  2,484   2,305   2,461   2,427   2,449 
    Advertising and public relations  1,055   1,165   967   933   796 
    Professional fees  372   295   221   330   372 
    Amortization of intangibles  524   535   536   530   530 
    FDIC premiums and assessments  362   365   365   364   369 
    Litigation expense  -   -   -   1,800   - 
    Other operating expense  3,661   3,050   3,654   3,026   3,366 
    Total noninterest expense $24,944  $24,107  $24,177  $24,897  $23,386 


    RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited) 
      
      Three Months Ended 
      March 31,
    2025
    		  December 31,
    2024
    		  September 30,
    2024
    		  June 30,
    2024
    		  March 31,
    2024
    		 
    (Amounts in thousands, except per share data)          
    Adjusted Net Income for diluted earnings per share $11,818  $13,040  $13,033  $12,686  $12,845 
    Non-GAAP adjustments:                    
    Loss (gain) on sale of securities  -   -   -   -   - 
    Merger expense  -   -   -   -   - 
    Day 2 provision for allowance for credit losses - Surrey  -   -   -   -   - 
    Litigation expense  -   -   -   1,800   - 
    Other items(1)  -   -   (825)  -   - 
    Total adjustments  -   -   (825)  1,800   - 
    Tax effect  -   -   (198)  432   - 
    Adjusted earnings, non-GAAP $11,818  $13,040  $12,406  $14,054  $12,845 
                         
    Adjusted diluted earnings per common share, non-GAAP $0.64  $0.71  $0.68  $0.76  $0.69 
    Performance ratios, non-GAAP                    
    Adjusted return on average assets  1.49%  1.60%  1.53%  1.75%  1.60%
    Adjusted return on average common equity  9.49%  9.89%  9.56%  11.10%  10.18%
    Adjusted return on average tangible common equity (2)  13.79%  14.12%  13.77%  16.11%  14.82%

    _____________

    (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 March 31, 
      2025  2024 
      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) $2,395,068  $30,757   5.21% $2,549,107  $33,500   5.29%
    Securities available for sale  149,266   1,261   3.43%  239,010   1,731   2.91%
    Interest-bearing deposits  295,939   3,262   4.47%  66,483   916   5.54%
    Total earning assets  2,840,273   35,280   5.04%  2,854,600   36,147   5.09%
    Other assets  373,791           373,614         
    Total assets $3,214,064          $3,228,214         
                             
    Liabilities and stockholders' equity                        
    Interest-bearing deposits                        
    Demand deposits $658,651  $180   0.11% $665,875  $162   0.10%
    Savings deposits  891,148   3,311   1.51%  866,084   3,412   1.58%
    Time deposits  238,254   1,380   2.35%  249,974   790   1.27%
    Total interest-bearing deposits  1,788,053   4,871   1.10%  1,781,933   4,364   0.98%
    Borrowings                        
    Federal funds purchased  -   -   -   2,527   35   5.52%
    Retail repurchase agreements  1,071   -   0.06%  1,127   -   0.05%
    Total borrowings  1,071   -   0.06%  3,654   35   3.85%
    Total interest-bearing liabilities  1,789,124   4,871   1.10%  1,785,587   4,399   0.99%
    Noninterest-bearing demand deposits  859,988           886,947         
    Other liabilities  60,167           48,298         
    Total liabilities  2,709,279           2,720,832         
    Stockholders' equity  504,785           507,382         
    Total liabilities and stockholders' equity $3,214,064          $3,228,214         
    Net interest income, FTE(1)     $30,409          $31,748     
    Net interest rate spread          3.94%          4.10%
    Net interest margin, FTE(1)          4.34%          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 $556 thousand and $781 thousand for the three months ended March 31, 2025 and 2024, respectively.
       


    CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited) 
      
      March 31,
    2025
    		  December 31,
    2024
    		  September 30,
    2024
    		  June 30,
    2024
    		  March 31,
    2024
    		 
    (Amounts in thousands, except per share data)          
    Assets                    
    Cash and cash equivalents $414,682  $377,454  $315,338  $329,877  $248,905 
    Debt securities available for sale, at fair value  129,659   169,849   166,669   129,686   166,247 
    Loans held for investment, net of unearned income  2,382,699   2,416,089   2,444,113   2,473,268   2,519,833 
    Allowance for credit losses  (33,784)  (34,825)  (35,118)  (34,885)  (35,461)
    Loans held for investment, net  2,348,915   2,381,264   2,408,995   2,438,383   2,484,372 
    Premises and equipment, net  48,780   48,735   49,654   50,528   51,333 
    Other real estate owned  298   521   346   100   374 
    Interest receivable  9,306   9,207   9,883   9,984   10,719 
    Goodwill  143,946   143,946   143,946   143,946   143,946 
    Other intangible assets  12,490   13,014   13,550   14,085   14,615 
    Other assets  117,697   117,226   115,980   116,230   115,470 
    Total assets $3,225,773  $3,261,216  $3,224,361  $3,232,819  $3,235,981 
                         
    Liabilities                    
    Deposits                    
    Noninterest-bearing $893,794  $883,499  $869,723  $889,462  $902,396 
    Interest-bearing  1,790,683   1,807,748   1,789,530   1,787,810   1,779,819 
    Total deposits  2,684,477   2,691,247   2,659,253   2,677,272   2,682,215 
    Securities sold under agreements to repurchase  908   906   954   894   1,006 
    Interest, taxes, and other liabilities  43,971   42,671   43,460   45,769   45,816 
    Total liabilities  2,729,356   2,734,824   2,703,667   2,723,935   2,729,037 
                         
    Stockholders' equity                    
    Common stock  18,327   18,322   18,291   18,270   18,413 
    Additional paid-in capital  169,867   169,752   168,691   168,272   173,041 
    Retained earnings  317,728   349,489   342,121   334,756   327,389 
    Accumulated other comprehensive loss  (9,505)  (11,171)  (8,409)  (12,414)  (11,899)
    Total stockholders' equity  496,417   526,392   520,694   508,884   506,944 
    Total liabilities and stockholders' equity $3,225,773  $3,261,216  $3,224,361  $3,232,819  $3,235,981 
                         
    Shares outstanding at period-end  18,326,657   18,321,795   18,290,938   18,270,273   18,413,088 
    Book value per common share $27.09  $28.73  $28.47  $27.85  $27.53 
    Tangible book value per common share(1)  18.55   20.16   19.86   19.20   18.92 

    _____________

    (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) 
      
      March 31,
    2025
    		  December 31,
    2024
    		  September 30,
    2024
    		  June 30,
    2024
    		  March 31,
    2024
    		 
    (Amounts in thousands)          
    Allowance for Credit Losses                    
    Balance at beginning 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 
    Total allowance for credit losses beginning of period  35,166   35,559   35,326   36,207   36,935 
    Provision for credit losses:                    
    Provision for credit losses - loans  350   1,182   1,360   449   1,011 
    (Recovery of) provision for credit losses - loan commitments  (29)  (100)  -   (305)  - 
    Total provision for credit losses - loans and loan commitments  321   1,082   1,360   144   1,011 
    Charge-offs  (1,998)  (2,005)  (1,799)  (1,599)  (2,448)
    Recoveries  607   530   672   574   709 
    Net (charge-offs) recoveries  (1,391)  (1,475)  (1,127)  (1,025)  (1,739)
    Balance at end of period:                    
    Allowance for credit losses - loans  33,784   34,825   35,118   34,885   35,461 
    Allowance for credit losses - loan commitments  312   341   441   441   746 
    Ending balance $34,096  $35,166  $35,559  $35,326  $36,207 
                         
    Nonperforming Assets                    
    Nonaccrual loans $19,974  $19,869  $19,754  $19,815  $19,617 
    Accruing loans past due 90 days or more  117   149   176   19   30 
    Modified loans past due 90 days or more  125   135   -   -   - 
    Total nonperforming loans  20,216   20,153   19,930   19,834   19,647 
    OREO  298   521   346   100   374 
    Total nonperforming assets $20,514  $20,674  $20,276  $19,934  $20,021 
                         
                         
    Additional Information                    
    Total modified loans $2,124  $2,260  $2,320  $2,290  $2,177 
                         
    Asset Quality Ratios                    
    Nonperforming loans to total loans  0.85%  0.83%  0.82%  0.80%  0.78%
    Nonperforming assets to total assets  0.64%  0.63%  0.63%  0.62%  0.62%
    Allowance for credit losses to nonperforming loans  167.12%  172.80%  176.21%  175.88%  180.49%
    Allowance for credit losses to total loans  1.42%  1.44%  1.44%  1.41%  1.41%
    Annualized net charge-offs (recoveries) to average loans  0.24%  0.24%  0.18%  0.16%  0.27%


    FOR MORE INFORMATION, CONTACT:
    David D. Brown
    (276) 326-9000

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