• First Community Bankshares, Inc. Announces First Quarter 2024 Results and Quarterly Cash Dividend

    来源: Nasdaq GlobeNewswire / 23 4月 2024 15:00:38   America/Chicago

    BLUEFIELD, Va., April 23, 2024 (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, 2024. The Company reported net income of $12.85 million, or $0.71 per diluted common share, for the quarter ended March 31, 2024.   

    The Company also declared a quarterly cash dividend to common shareholders of twenty-nine cents $0.29 per common share. The quarterly dividend is payable to common shareholders of record on May 10, 2024, and is expected to be paid on or about May 24, 2024. This marks the 39th consecutive year of regular dividends to common shareholders.

    First Quarter 2024 Highlights

    Income Statement

    • Net income of $12.85 million for the first quarter of 2024, was an increase of $1.06 million, or 9.02%, from the same quarter of 2023.  
    • Net interest income increased $2.22 million compared to the same quarter in 2023, as increases in benchmark interest rates have improved net interest margin.  Provision for credit losses was approximately $731 thousand lower than the same quarter last year.  
    • Net interest margin of 4.47% is an increase of 12 basis points over the same quarter of 2023.  The yield on earning assets increased 62 basis points primarily driven by increased earnings on loans.  
    • Interest and fees on loans increased $5.79 million from the same quarter of 2023 and is attributable to both an increase in yield and an increase in average balance compared to the yield and average balance of the prior year. The Company acquired Surrey Bancorp on April 21, 2023, adding approximately $239.08 million in loans.   
    • Noninterest income increased approximately $676 thousand, or 7.88%, when compared to the same quarter of 2023.  The increase was primarily driven by increased interchange income.  Noninterest expense increased $2.57 million, or 12.36%.  The increase in noninterest expense was primarily driven by salaries and employee benefits, service fees, and other operating expense.  The increase in non interest expense is primarily attributable to the addition of Surrey branches and staff.  
    • Annualized return on average assets ("ROA") was 1.60% for the first quarter of 2024 compared to 1.55% for the same period of 2023. Annualized return on average common equity ("ROE") was 10.18% for the first quarter of 2024 compared to 11.15% for the same period of 2023.  

    Balance Sheet and Asset Quality

    • Consolidated assets totaled $3.24 billion at March 31, 2024.  
    • Securities available for sale decreased $114.71 million, or 40.83%, from December 31,2023.  The decrease is primarily attributable to the maturity of $115.75 million in U.S. Treasury Notes during the first quarter of 2024.  Loans decreased $52.47 million, or 2.04%.  Deposits decreased $40.11 million, or 1.47%.  The net effect of these balance sheet changes resulted in an increase in cash and cash equivalents of $132.49 million, or 113.80%.  The increase in cash and cash equivalents is primarily attributable to an increase in federal funds sold of $142.63 million.  
    • The Company repurchased 89,396 common shares during the first quarter of 2024 for a total cost of $2.97 million.   
    • Non-performing loans to total loans increased to 0.78% when compared with the same quarter of 2023.  The Company experienced net charge-offs for the first quarter of 2024 of $1.74 million, or 0.27%, of annualized average loans, compared to net charge-offs of $1.74 million, or 0.29%, of annualized average loans for the same period in 2023. 
    • The allowance for credit losses to total loans was 1.41% at March 31, 2024, compared to 1.41% at December 31, 2023, and 1.29% for March 31, 2023.
    • Book value per share at March 31, 2024, was $27.53, an increase of $0.33 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 March 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 $1.55 billion in combined assets as of March 31, 2024. The Company reported consolidated assets of $3.24 billion as of March 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 
    (Amounts in thousands, except share and per share data) March 31,  December 31,  September 30,  June 30,  March 31, 
     2024  2023  2023  2023  2023 
    Interest income                    
    Interest and fees on loans $33,418  $33,676  $33,496  $31,927  $27,628 
    Interest on securities  1,698   1,888   1,912   2,057   2,099 
    Interest on deposits in banks  913   438   697   885   462 
    Total interest income  36,029   36,002   36,105   34,869   30,189 
    Interest expense                    
    Interest on deposits  4,365   3,935   2,758   1,930   718 
    Interest on borrowings  35   4   0   77   59 
    Total interest expense  4,400   3,939   2,758   2,007   777 
    Net interest income  31,629   32,063   33,347   32,862   29,412 
    Provision for credit losses  1,011   1,029   1,109   4,105   1,742 
    Net interest income after provision  30,618   31,034   32,238   28,757   27,670 
    Noninterest income  9,259   10,462   9,622   8,785   8,583 
    Noninterest expense  23,386   26,780   22,913   24,671   20,813 
    Income before income taxes  16,491   14,716   18,947   12,871   15,440 
    Income tax expense  3,646   2,932   4,307   3,057   3,658 
    Net income $12,845  $11,784  $14,640  $9,814  $11,782 
                         
    Adjustment to Net Income for Fair Value Changes to Restricted Stock Units (tax-effected) $240  $530  $215  $335  $20 
    Adjusted Net Income for diluted earnings per share $13,085  $12,314  $14,855  $10,149  $11,802 
                         
    Earnings per common share                    
    Basic $0.70  $0.64  $0.78  $0.53  $0.73 
    Diluted $0.71  $0.66  $0.79  $0.55  $0.72 
    Cash dividends per common share                    
    Regular  0.29   0.29   0.29   0.29   0.29 
    Weighted average shares outstanding                    
    Basic  18,476,128   18,530,114   18,786,032   18,407,078   16,228,297 
    Diluted  18,545,910   18,575,226   18,831,836   18,431,598   16,289,489 
    Performance ratios                    
    Return on average assets  1.60%  1.43%  1.74%  1.18%  1.55%
    Return on average common equity  10.18%  9.39%  11.63%  8.04%  11.15%
    Return on average tangible common equity(1)  14.82%  13.82%  17.11%  11.65%  16.19%

     

    ____________

    (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,  December 31,  September 30,  June 30,  March 31, 
    (Amounts in thousands) 2024  2023  2023  2023  2023 
    Noninterest income                    
    Wealth management $1,099  $1,052  $1,145  $965  $1,017 
    Service charges on deposits  3,310   3,637   3,729   3,471   3,159 
    Other service charges and fees  3,450   3,541   3,564   3,460   3,082 
    (Loss) gain on sale of securities  -   -   -   (28)  7 
    Other operating income  1,400   2,232   1,184   917   1,318 
    Total noninterest income $9,259  $10,462  $9,622  $8,785  $8,583 
    Noninterest expense                    
    Salaries and employee benefits $12,581  $12,933  $12,673  $12,686  $11,595 
    Occupancy expense  1,378   1,252   1,271   1,276   1,168 
    Furniture and equipment expense  1,545   1,489   1,480   1,508   1,401 
    Service fees  2,449   2,255   2,350   2,284   2,019 
    Advertising and public relations  796   843   968   846   643 
    Professional fees  372   787   172   281   327 
    Amortization of intangibles  530   536   536   425   234 
    FDIC premiums and assessments  369   376   392   423   320 
    Merger expense  -   -   -   2,014   379 
    Litigation expense  -   3,000   -   -   - 
    Other operating expense  3,366   3,309   3,071   2,928   2,727 
    Total noninterest expense $23,386  $26,780  $22,913  $24,671  $20,813 


      
    RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited) 
      
      Three Months Ended 
      March 31,  December 31,  September 30,  June 30,  March 31, 
    (Amounts in thousands, except per share data) 2024  2023  2023  2023  2023 
    Adjusted Net Income for diluted earnings per share $13,085  $12,314  $14,855  $10,149  $11,802 
    Non-GAAP adjustments:                    
    Loss (gain) on sale of securities  -   -   -   28   (7)
    Merger expense  -   -   -   2,014   379 
    Day 2 provision for allowance for credit losses - Surrey  -   -   -   1,614   - 
    Litigation expense  -   3,000   -   -   - 
    Other items(1)  -   -   (204)  -   - 
    Total adjustments  -   3,000   (204)  3,656   372 
    Tax effect  -   720   (49)  522   10 
    Adjusted earnings, non-GAAP $13,085  $14,594  $14,700  $13,283  $12,163 
                         
    Adjusted diluted earnings per common share, non-GAAP $0.71  $0.79  $0.78  $0.72  $0.75 
    Performance ratios, non-GAAP                    
    Adjusted return on average assets  1.63%  1.77%  1.75%  1.60%  1.60%
    Adjusted return on average common equity  10.37%  11.63%  11.68%  10.88%  11.51%
    Adjusted return on average tangible common equity (2)  15.10%  17.11%  17.18%  15.77%  16.72%

    ____________

    (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, 
      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) $2,549,107  $33,500   5.29% $2,393,759  $27,698   4.69%
    Securities available for sale  239,010   1,731   2.91%  316,734   2,140   2.74%
    Interest-bearing deposits  66,483   916   5.54%  40,993   465   4.60%
    Total earning assets  2,854,600   36,147   5.09%  2,751,486   30,303   4.47%
    Other assets  373,614           322,789         
    Total assets $3,228,214          $3,074,275         
                             
    Liabilities and stockholders' equity                        
    Interest-bearing deposits                        
    Demand deposits $665,875  $162   0.10% $666,447  $26   0.02%
    Savings deposits  866,084   3,412   1.58%  827,414   484   0.24%
    Time deposits  249,974   790   1.27%  271,214   208   0.31%
    Total interest-bearing deposits  1,781,933   4,364   0.98%  1,765,075   718   0.16%
    Borrowings                        
    Federal funds purchased  2,527   35   5.52%  4,719   58   5.07%
    Retail repurchase agreements  1,127   -   0.05%  2,086   1   0.06%
    Total borrowings  3,654   35   3.85%  6,805   59   0.07%
    Total interest-bearing liabilities  1,785,587   4,399   0.99%  1,771,880   777   0.18%
    Noninterest-bearing demand deposits  886,947           838,041         
    Other liabilities  48,298           35,669         
    Total liabilities  2,720,832           2,645,590         
    Stockholders' equity  507,382           428,685         
    Total liabilities and stockholders' equity $3,228,214          $3,074,275         
    Net interest income, FTE(1)     $31,748          $29,526     
    Net interest rate spread          4.10%          4.29%
    Net interest margin, FTE(1)          4.47%          4.35%

    ____________

    (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 $781 thousand and $193 thousand for the three months ended March 31, 2024 and 2023, respectively.


      
    CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited) 
      
      March 31,  December 31,  September 30,  June 30,  March 31, 
    (Amounts in thousands, except per share data) 2024  2023  2023  2023  2023 
    Assets                    
    Cash and cash equivalents $248,905  $116,420  $113,397  $152,660  $92,385 
    Debt securities available for sale, at fair value  166,247   280,961   275,332   314,373   308,269 
    Loans held for investment, net of unearned income  2,519,833   2,572,298   2,593,472   2,621,073   2,388,897 
    Allowance for credit losses  (35,461)  (36,189)  (36,031)  (36,177)  (30,789)
    Loans held for investment, net  2,484,372   2,536,109   2,557,441   2,584,896   2,358,108 
    Premises and equipment, net  51,333   50,680   51,205   53,546   47,407 
    Other real estate owned  374   192   243   339   481 
    Interest receivable  10,719   10,881   10,428   10,185   8,646 
    Goodwill  143,946   143,946   143,946   143,946   129,565 
    Other intangible assets  14,615   15,145   15,681   16,217   3,942 
    Other assets  115,470   114,854   116,552   115,275   102,869 
    Total assets $3,235,981  $3,269,188  $3,284,225  $3,391,437  $3,051,672 
                         
    Liabilities                    
    Deposits                    
    Noninterest-bearing $902,396  $931,920  $944,301  $974,995  $823,297 
    Interest-bearing  1,779,819   1,790,405   1,801,835   1,877,683   1,761,327 
    Total deposits  2,682,215   2,722,325   2,746,136   2,852,678   2,584,624 
    Securities sold under agreements to repurchase  1,006   1,119   1,029   1,348   1,866 
    Interest, taxes, and other liabilities  45,816   42,450   41,393   38,691   33,451 
    Total liabilities  2,729,037   2,765,894   2,788,558   2,892,717   2,619,941 
                         
    Stockholders' equity                    
    Common stock  18,413   18,502   18,671   18,969   16,243 
    Additional paid-in capital  173,041   175,841   180,951   189,917   128,666 
    Retained earnings  327,389   319,902   313,489   304,295   300,047 
    Accumulated other comprehensive loss  (11,899)  (10,951)  (17,444)  (14,461)  (13,225)
    Total stockholders' equity  506,944   503,294   495,667   498,720   431,731 
    Total liabilities and stockholders' equity $3,235,981  $3,269,188  $3,284,225  $3,391,437  $3,051,672 
                         
    Shares outstanding at period-end  18,413,088   18,502,396   18,671,470   18,969,281   16,243,551 
    Book value per common share $27.53  $27.20  $26.55  $26.29  $26.58 
    Tangible book value per common share(1)  18.92   18.60   18.00   17.85   18.36 

    ____________

    (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,  December 31,  September 30,  June 30,  March 31, 
    (Amounts in thousands) 2024  2023  2023  2023  2023 
    Allowance for Credit Losses                    
    Balance at beginning of period:                    
    Allowance for credit losses - loans $36,189  $36,031  $36,177  $30,789  $30,556 
    Allowance for credit losses - loan commitments  746   758   964   964   1,196 
    Total allowance for credit losses beginning of period  36,935   36,789   37,141   31,753   31,752 
    Adjustments to beginning balance:                    
    Allowance for credit losses - loans - Surrey acquisition for purchased credit deteriorated loans  -   -   -   2,011   - 
    Allowance for credit losses - loan commitments  -   -   -   -   - 
    Net Adjustments  -   -   -   2,011   - 
    Provision for credit losses:                    
    Provision for credit losses - loans  1,011   1,041   1,315   4,105   1,974 
    (Recovery of) provision for credit losses - loan commitments  -   (12)  (206)  -   (232)
    Total provision for credit losses - loans and loan commitments  1,011   1,029   1,109   4,105   1,742 
    Charge-offs  (2,448)  (2,105)  (2,157)  (1,993)  (2,570)
    Recoveries  709   1,222   696   1,265   829 
    Net (charge-offs) recoveries  (1,739)  (883)  (1,461)  (728)  (1,741)
    Balance at end of period:                    
    Allowance for credit losses - loans  35,461   36,189   36,031   36,177   30,789 
    Allowance for credit losses - loan commitments  746   746   758   964   964 
    Ending balance $36,207  $36,935  $36,789  $37,141  $31,753 
                         
    Nonperforming Assets                    
    Nonaccrual loans $19,617  $19,356  $18,366  $18,628  $15,557 
    Accruing loans past due 90 days or more  30   104   59   -   23 
    Modified loans past due 90 days or more  -   -   -   -   - 
    Total nonperforming loans  19,647   19,460   18,425   18,628   15,580 
    OREO  374   192   243   339   481 
    Total nonperforming assets $20,021  $19,652  $18,668  $18,967  $16,061 
                         
                         
    Additional Information                    
    Total modified loans $2,177  $1,873  $1,674  $642  $429 
                         
    Asset Quality Ratios                    
    Nonperforming loans to total loans  0.78%  0.76%  0.71%  0.71%  0.65%
    Nonperforming assets to total assets  0.62%  0.60%  0.57%  0.56%  0.53%
    Allowance for credit losses to nonperforming loans  180.49%  185.97%  195.55%  194.21%  197.62%
    Allowance for credit losses to total loans  1.41%  1.41%  1.39%  1.38%  1.29%
    Annualized net charge-offs (recoveries) to average loans  0.27%  0.14%  0.22%  0.11%  0.29%


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

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