Financial Performance - Net income for Q3 2024 was $13.03 million, a decrease of $1.61 million or 10.98% from Q3 2023[3] - Net income for Q3 2024 was $13,033, compared to $12,686 in Q2 2024, marking an increase of 2.7%[10] - Adjusted net income for diluted earnings per share for Q3 2024 was $13,033,000, a decrease from $14,855,000 in Q3 2023, representing a decline of 12.2%[14] - The adjusted return on average assets for Q3 2024 was 1.53%, down from 1.75% in Q3 2023, reflecting a decline of 12.6%[14] - The return on average common equity was 10.04% in Q3 2024, compared to 10.02% in Q2 2024, indicating stability in profitability[10] Income and Expenses - Net interest income decreased by $1.75 million compared to Q3 2023, primarily due to increased rates on interest-bearing deposits[3] - Total interest income for Q3 2024 was $36,892, a slight increase from $36,789 in Q2 2024, and up from $36,105 in Q3 2023, reflecting a year-over-year growth of 2.2%[10] - Net interest income after provision for credit losses was $30,234 in Q3 2024, compared to $31,768 in Q2 2024, indicating a decrease of 4.8% quarter-over-quarter[10] - Noninterest income increased by approximately $830 thousand, or 8.63%, compared to Q3 2023, including a gain of $825 thousand from the sale of two closed branch properties[3] - Noninterest income increased to $10,452 in Q3 2024, up from $9,342 in Q2 2024, representing a growth of 11.9%[11] - Noninterest expense for Q3 2024 was $24,177, a decrease from $24,897 in Q2 2024, showing a reduction of 2.9%[12] Assets and Liabilities - Consolidated assets totaled $3.22 billion as of September 30, 2024[4] - Total assets as of September 30, 2024, were $3,231,259,000, a decrease from $3,333,400,000 in the previous year[16] - Total liabilities decreased to $2,703,667 from $2,788,558 year-over-year, representing a decline of 3.0%[20] - Total deposits decreased to $2,659,253 from $2,746,136 year-over-year, a decline of 3.2%[20] Loans and Credit Quality - Loans decreased by $128.19 million, or 4.98%, from December 31, 2023[4] - Non-performing loans to total loans increased to 0.82% compared to Q3 2023[5] - The allowance for credit losses to total loans was 1.44% at September 30, 2024, compared to 1.39% for September 30, 2023[5] - The provision for credit losses for loans was $1,360 for the quarter, compared to $1,315 in the same quarter last year, indicating an increase in provisions[22] - Nonperforming loans increased to $19,930, compared to $18,425 a year ago, reflecting a rise of 8.1%[22] - The ratio of nonperforming loans to total loans was 0.82%, up from 0.71% a year earlier, indicating a deterioration in asset quality[22] Shareholder Returns - The company repurchased 12,854 common shares during Q3 2024 at a total cost of $469 thousand[4] - The quarterly cash dividend declared was $0.31 per common share, marking the 39th consecutive year of regular dividends[2] - Cash dividends per common share increased to $0.31 in Q3 2024, up from $0.29 in Q2 2024[10] - Book value per share increased to $28.47, an increase of $1.27 from year-end 2023[5] - The book value per common share increased to $28.47 from $26.55 year-over-year, showing a growth of 7.2%[20]

Core Insights - First Community Bankshares, Inc. reported a net income of $13.03 million for Q3 2024, a decrease of 10.98% compared to Q3 2023, while net income for the first nine months of 2024 increased by 6.42% to $38.56 million [1][3][10] - The company declared a quarterly cash dividend of $0.31 per common share, marking the 39th consecutive year of regular dividends [1][3] - The bank is actively providing support to borrowers affected by Hurricane Helene, including payment relief [2] Income Statement Summary - Net interest income decreased by $1.75 million compared to Q3 2023, primarily due to increased rates on interest-bearing deposits [3] - Noninterest income increased by approximately $830 thousand, or 8.63%, compared to the same quarter of 2023, driven by a gain from the sale of closed branch properties [3] - Noninterest expense rose by $1.26 million, or 5.52% [3] - Annualized return on average assets (ROA) was 1.60% for Q3 2024, down from 1.74% in Q3 2023, while return on average common equity (ROE) was 10.04%, down from 11.63% [3][10] Balance Sheet and Asset Quality - Consolidated assets totaled $3.22 billion as of September 30, 2024 [4] - Loans decreased by $128.19 million, or 4.98%, from December 31, 2023, while securities available for sale decreased by $114.29 million, or 40.68% [4] - Non-performing loans to total loans increased to 0.82% compared to the same quarter of 2023 [4] - The allowance for credit losses to total loans was 1.44% as of September 30, 2024, compared to 1.39% a year earlier [4] Shareholder Information - The company repurchased 12,854 common shares during Q3 2024 at a total cost of $469 thousand, and 257,294 shares for $8.72 million in the first nine months of 2024 [4] - Book value per share increased to $28.47, up $1.27 from year-end 2023 [4] Non-GAAP Financial Measures - The company utilizes non-GAAP financial measures to provide additional insights into its financial performance, including adjusted earnings and return metrics [5]

Financial Performance - Net income for the six months ended June 30, 2024, was $25,531 thousand, up from $21,596 thousand for the same period in 2023, indicating a growth of approximately 18.5%[10] - Basic earnings per share rose to $0.69 for the three months ended June 30, 2024, compared to $0.53 for the same period in 2023, marking an increase of about 30.2%[10] - Net income for June 30, 2024, was $12,686,000, an increase of 29.5% compared to $9,814,000 for June 30, 2023[11] - Total comprehensive income for the six months ended June 30, 2024, was $24,068,000, compared to $22,854,000 for the same period in 2023, reflecting an increase of 5.3%[11] - Net income for Q2 2024 was $12.69 million, an increase of $2.87 million or 29.26% from Q2 2023[114] Asset and Liability Management - Total assets decreased from $3,268,545 thousand as of December 31, 2023, to $3,232,819 thousand as of June 30, 2024, reflecting a decline of approximately 1.1%[8] - Total liabilities decreased from $2,765,251 thousand as of December 31, 2023, to $2,723,935 thousand as of June 30, 2024, reflecting a decline of about 1.5%[8] - The allowance for credit losses decreased from $36,189 thousand as of December 31, 2023, to $34,885 thousand as of June 30, 2024, a reduction of approximately 3.6%[8] - Total deposits decreased from $2,722,325 thousand as of December 31, 2023, to $2,677,272 thousand as of June 30, 2024, a decline of approximately 1.7%[8] Income and Expense Analysis - Net interest income after provision for credit losses increased to $31,768 thousand for the three months ended June 30, 2024, compared to $28,757 thousand for the same period in 2023, representing an increase of about 6.9%[10] - Noninterest income for the six months ended June 30, 2024, totaled $18,601 thousand, compared to $17,368 thousand for the same period in 2023, reflecting an increase of about 7.1%[10] - Total noninterest expense increased from $24,671,000 in Q2 2023 to $24,897,000 in Q2 2024, representing a rise of about 0.9%[10] - Interest expense on deposits increased to $4,877 thousand for the three months ended June 30, 2024, compared to $1,930 thousand for the same period in 2023, representing an increase of about 152.5%[10] Credit Quality and Losses - Provision for credit losses was $144 thousand for the three months ended June 30, 2024, significantly lower than $4,105 thousand for the same period in 2023, indicating a decrease of approximately 96.5%[10] - The company reported net charge-offs of $1,025,000 for the three months ended June 30, 2024, compared to $728,000 for the same period last year, indicating an increase of 40.8%[73] - The allowance for credit losses (ACL) to nonperforming loans ratio was 175.88% as of June 30, 2024, down from 185.97% at year-end[149] Shareholder Activities - Common dividends declared were $0.29 per share, totaling $5,319,000 for the quarter ended June 30, 2024[14] - The company repurchased common shares at an average price of $34.03 per share, totaling $5,276,000 during the quarter[14] - The total number of common shares outstanding decreased to 18,270,273 as of June 30, 2024, down from 18,969,281 as of June 30, 2023[15] Acquisition and Goodwill - The acquisition of Surrey Bancorp was completed on April 21, 2023, with a total purchase price of $71.37 million[28] - Goodwill recognized from the Surrey acquisition amounted to $14.38 million[29] - Core deposit intangibles from the Surrey transaction totaled $12.70 million[30] Securities and Investments - The fair value of available-for-sale debt securities was $280,961,000, with unrealized losses of $14,113,000[37] - The company holds $145,622,000 in available-for-sale debt securities, with a fair value of $129,686,000[40] - The company does not anticipate credit losses on debt securities in an unrealized loss position as of June 30, 2024[44] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period reached $329,877,000, up from $152,660,000[18] - The company had no long-term borrowings as of June 30, 2024, maintaining a strong liquidity position[76] - Unused borrowing capacity with the FHLB totaled $391.26 million as of June 30, 2024, providing additional financial flexibility[76] Market and Economic Conditions - The sensitivity of net interest income to a 200 basis point increase in interest rates is projected to be $2.11 million, or a 1.6% increase, as of June 30, 2024[171] - The yield on earning assets increased by 45 basis points, or 9.47%, primarily due to an increase in benchmark rates compared to the same period of 2023[126]

Loan Performance - Non-performing loans to total loans increased to 0.80% compared to 0.11% in the same quarter of 2023[3] - Net charge-offs for Q2 2024 were $1.03 million, or 0.16% of annualized average loans, up from $728 thousand, or 0.11%, in Q2 2023[3] - Provision for credit losses decreased by $3.96 million, or 96.49%, compared to Q2 2023, primarily due to a decline in the loan portfolio by $147.81 million[12] - Allowance for credit losses to total loans was 1.41% as of June 30, 2024, unchanged from December 31, 2023[13] - Provision for credit losses was $144,000 for the second quarter of 2024, significantly lower than $1,011,000 in the same quarter of 2023, indicating improved credit quality[34] Financial Performance - Net income for Q2 2024 was $12.69 million, an increase of $2.87 million, or 29.26%, from Q2 2023[12] - The company reported a net income of $12,686,000 for the second quarter of 2024, slightly down from $12,845,000 in the same quarter of 2023, a decrease of 1.2%[34] - For the six months ended June 30, 2024, net income was $25.53 million, or $1.42 per diluted common share[30] - Adjusted net income for diluted earnings per share was $14,493 thousand for the quarter ended June 30, 2024, compared to $13,283 thousand for the same period in 2023, representing an increase of 9.1%[26] - Annualized return on average assets (ROA) was 1.58% for Q2 2024, compared to 1.18% for Q2 2023[12] - Return on average assets for the second quarter of 2024 was 1.58%, compared to 1.60% in the previous quarter, showing a slight decline[34] - The adjusted return on average assets was 1.81% for the quarter ended June 30, 2024, up from 1.60% in the same quarter of 2023[26] - The adjusted return on average common equity increased to 11.45% for the quarter ended June 30, 2024, compared to 10.88% for the same period in 2023[26] Interest Income and Expenses - Net interest income for Q2 2024 was $63.77 million, with a net interest margin of 4.49%, compared to 4.42% in Q2 2023[9] - Net interest income decreased by $950 thousand compared to Q2 2023, while net interest margin increased to 4.51%, up 3 basis points[12] - Total interest income for the second quarter of 2024 was $36,789,000, an increase from $34,869,000 in the same quarter of 2023, representing a year-over-year growth of 5.5%[34] - Net interest income after provision for credit losses was $31,768,000 for the second quarter of 2024, compared to $28,757,000 in the same quarter of 2023, reflecting a year-over-year increase of 10.5%[34] - Net interest income, FTE, for the period was $32,025 thousand, compared to $32,974 thousand in the previous period, indicating a decrease of 2.88%[46] - The net interest rate spread narrowed to 4.10%, down from 4.32%, showing a contraction of 22 basis points[46] Assets and Liabilities - Total assets of the company as of June 30, 2024, were reported at $3.23 billion[33] - Consolidated assets totaled $3.23 billion as of June 30, 2024, with a decrease in loans by $99.03 million, or 3.85%, from the previous period[41] - Total liabilities decreased to $2.72 billion, while stockholders' equity increased to $508.88 million[10] - Total liabilities decreased to $2,718,224 thousand from $2,844,714 thousand, a reduction of 4.43%[46] - Stockholders' equity increased to $509,204 thousand, up from $489,510 thousand, reflecting a growth of 4.43%[46] Noninterest Income and Expenses - Total noninterest expense for Q2 2024 was $24.90 million, compared to $23.39 million in Q1 2024[6] - Noninterest income increased by approximately $557 thousand, or 6.34%, compared to Q2 2023[12] - Noninterest income for the second quarter of 2024 was $9,342,000, up from $8,785,000 in the same quarter of 2023, indicating a growth of 6.3%[44] Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.31 per common share, marking the 39th consecutive year of regular dividends[21] - The company repurchased 155,044 common shares during the second quarter of 2024 at a total cost of $5.28 million[41] Cash and Cash Equivalents - Cash and cash equivalents increased to $329.88 million from $152.66 million in Q2 2023[10] - Cash and cash equivalents increased by $213.46 million, or 183.35%, due to balance sheet changes[41] Market Strategy - The company plans to continue focusing on market expansion and enhancing its product offerings in the upcoming quarters[2] Branch Operations - The company operated 53 branch banking locations across Virginia, West Virginia, North Carolina, and Tennessee as of June 30, 2024[33]

Core Viewpoint - First Community Bankshares, Inc. reported strong financial results for the second quarter of 2024, with significant increases in net income and a consistent dividend payout to shareholders, reflecting the company's solid performance and commitment to returning value to investors [17][18]. Financial Performance - The company reported net income of $12.69 million for the second quarter of 2024, an increase of $2.87 million, or 29.26%, compared to the same quarter in 2023 [18]. - For the first six months of 2024, net income was $25.53 million, up $3.94 million, or 18.22%, from the same period in 2023 [18]. - Earnings per diluted common share for the second quarter were $0.71, compared to $0.66 for the same period in 2023 [17][18]. Dividend Declaration - The company declared a quarterly cash dividend of $0.31 per common share, marking the 39th consecutive year of regular dividends to common shareholders [1]. Balance Sheet Highlights - As of June 30, 2024, total assets were reported at $3.23 billion, with a decrease in securities available for sale by $151.28 million, or 53.84%, primarily due to the maturity of U.S. Treasury Notes [19]. - Loans decreased by $99.03 million, or 3.85%, while deposits decreased by $45.05 million, or 1.65% [19]. - The allowance for credit losses to total loans was 1.41% as of June 30, 2024, consistent with the previous year [19]. Noninterest Income and Expense - Noninterest income increased by approximately $557 thousand, or 6.34%, compared to the same quarter in 2023 [18]. - Noninterest expense rose by $226 thousand, or 0.92%, which included a non-recurring charge of $1.80 million related to a lawsuit settlement [18]. Key Ratios - The annualized return on average assets (ROA) was 1.58% for the second quarter of 2024, compared to 1.18% for the same period in 2023 [18]. - The annualized return on average common equity (ROE) was 10.02% for the second quarter of 2024, up from 8.04% in the same quarter of 2023 [18].

Core Insights - Three stocks with strong income characteristics and buy rank are highlighted for investors: Sunoco LP, First Community Bankshares, Inc., and Immersion Corporation [1][2][3] Group 1: Company Performance - Sunoco LP (SUN) has seen a 24.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - First Community Bankshares, Inc. (FCBC) has experienced an 8.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Immersion Corporation (IMMR) has recorded a 5.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] Group 2: Dividend Yield - A Zacks Rank 1 company has a dividend yield of 6.7%, surpassing the industry average of 5.9% [5] - Another Zacks Rank 1 company has a dividend yield of 3.5%, compared to the industry average of 2.8% [6] - A third Zacks Rank 1 company has a dividend yield of 1.7%, while the industry average is 0.0% [7]

First Community Bancshares (FCBC) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Si ...

Resonac Holdings Corporation (SHWDY) : This Japan-based chemical company has seen the Zacks Consensus Estimate for its current year earnings increasing 22.5% over the last 60 days. Jackson Financial Inc. (JXN) : This insurance company has seen the Zacks Consensus Estimate for its current year earnings increasing 8.9% over the last 60 days. First Community Bankshares, Inc. (FCBC) : This financial holding company for First Community Bank has seen the Zacks Consensus Estimate for its current year earnings incr ...

Here are three stocks with buy rank and strong income characteristics for investors to consider today, June 7th: This Zacks Rank #1 company has a dividend yield of 3.4%, compared with the industry average of 2.8%. This Zacks Rank #1 company has a dividend yield of 2.8%, compared with the industry average of 1.7%. First Community Bankshares, Inc. (FCBC) : This financial holding company for First Community Bank has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.8% over the l ...

Here are three stocks with buy rank and strong income characteristics for investors to consider today, May 28: Janus Henderson Group plc (JHG) : This asset management holding company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.4% the last 60 days. This Zacks Rank #1 company has a dividend yield of 4.5%, compared with the industry average of 2.8%. First Community Bankshares, Inc. (FCBC) : This bank holding company for First Community Bank has witnessed the Zacks Con ...