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.
- 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.
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 | ||||||||||
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