Core Points - First Community Bankshares, Inc. reported a net income of $11.82 million, or $0.64 per diluted common share, for the quarter ended March 31, 2025 [1][10][12] - The company declared a quarterly cash dividend of $0.31 per common share, marking the 40th consecutive year of regular dividends [2][12] - Consolidated assets totaled $3.23 billion as of March 31, 2025 [1][8] Income Statement Highlights - Net interest income for the first quarter of 2025 was $30.30 million, a decrease from $31.33 million in the same period of 2024 [12] - Noninterest income increased by approximately $970 thousand, or 10.48%, compared to the same quarter of 2024, primarily due to an increase in service charges on deposits [6][15] - Noninterest expense rose by $1.56 million, or 6.66%, compared to the same period in 2024, mainly due to increased salaries and benefits [6][15] Balance Sheet and Asset Quality - Total loans decreased by $33.39 million, or 1.38%, from December 31, 2024, while securities available for sale decreased by $40.19 million, or 23.66% [6][19] - Deposits decreased by $6.77 million, or 0.25%, largely due to declining higher-rate time deposits [6][19] - Non-performing loans to total loans increased to 0.85% compared to the same quarter of 2024 [6][22] Non-GAAP Financial Measures - The company reported a tangible book value per common share of $27.09, a decrease of $1.64 from year-end 2024 [6][21] - Annualized return on average assets (ROA) was 1.49% for the first quarter of 2025, down from 1.60% for the same period of 2024 [6][12] - 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 [6][12]

Financial Performance - Net income for 2024 was $51.60 million, an increase of 7.46% compared to $48.02 million in 2023[152]. - Basic earnings per common share rose to $2.81 in 2024, up 5.24% from $2.67 in 2023[152]. - Annual net income was $51.60 million, or $2.80 per diluted common share, an increase of $3.58 million, or 7.46%, compared to 2023[154]. - Annualized return on average assets (ROA) was 1.60% for 2024, compared to 1.48% for 2023; annualized return on average common equity (ROE) was 10.03% for 2024, compared to 10.02% for 2023[154]. - Net income for 2023 was $51,604,000, a 5.5% increase from $48,020,000 in 2022[231]. - Earnings per common share (basic) for 2023 was $2.81, compared to $2.67 in 2022, reflecting a 5.2% increase[228]. Income and Expenses - Net interest income for 2024 totaled $126.47 million, a decrease of 0.95% from $127.68 million in 2023[152]. - Non-interest income increased by 5.17% to $39.47 million in 2024, compared to $37.53 million in 2023[152]. - Non-interest expense increased by 1.46% to $96.66 million in 2024, compared to $95.27 million in 2023[152]. - Total noninterest expense increased to $96,567,000 in 2023, up from $95,177,000 in 2022, representing a 1.5% rise[228]. - The provision for credit losses decreased to $3,597 thousand in 2023 from $7,985 thousand in 2022, a reduction of approximately 55%[237]. Credit Losses and Allowances - Provision for credit losses decreased by 54.95% to $3.60 million in 2024, down from $7.99 million in 2023[152]. - The allowance for credit losses to total loans was 1.44% at December 31, 2024, compared to 1.41% for the same period of 2023[154]. - The allowance for credit losses (ACL) is reviewed quarterly to ensure it is sufficient to absorb expected credit losses, with significant estimates and assumptions involved[267]. - The ACL is calculated using collectively evaluated and individually evaluated loans, reflecting management's best estimate of expected credit losses[269]. Asset and Loan Portfolio - Total assets decreased by $7.33 million, or 0.22%, to $3.26 billion as of December 31, 2024, with loans decreasing by $156.21 million, or 6.07%[176]. - Total loans held for investment decreased by $156.21 million, or 6.07%, as of December 31, 2024, compared to December 31, 2023[181]. - Loans held for investment decreased to $2.416 billion in 2024 from $2.572 billion in 2023, indicating a contraction in the loan portfolio[225]. - The total loans portfolio was $2.42 billion as of December 31, 2024[183]. - Commercial loans represented 65.46% of total loans as of December 31, 2024, compared to 64.59% in 2023[334]. Capital and Equity - Total stockholders' equity increased by $23.10 million, or 4.59%, to $526.39 million as of December 31, 2024, primarily due to earnings of $51.60 million offset by dividends of $22.02 million[213]. - The common equity Tier 1 ratio improved to 16.75% as of December 31, 2024, compared to 14.69% in 2023, indicating strong capital adequacy[214]. - The total risk-based capital ratio rose to 18.00% in 2024 from 15.94% in 2023, reflecting enhanced capital strength[214]. Acquisitions and Goodwill - The acquisition of Surrey Bancorp added $466.25 million in total assets and resulted in $14.38 million in goodwill[140]. - Goodwill recognized from the Surrey acquisition amounted to $14.38 million, with core deposit intangibles totaling $12.70 million[311]. - The Company incurred $2.99 million in merger expenses related to the Surrey transaction, with $2.39 million recorded in the first nine months of 2023[310]. Market and Securities - The fair value of available-for-sale debt securities as of December 31, 2024, was $169.85 million, with an amortized cost of $184.69 million[320]. - There were 103 individual debt securities in an unrealized loss position as of December 31, 2024, representing 8.74% of the debt securities portfolio[323]. - The total amortized cost of available-for-sale U.S. Treasury securities was $55.76 million, with no credit losses attributed to them as of December 31, 2024[326]. Liquidity and Cash Flow - As of December 31, 2024, the company's cash reserves totaled $3.95 million and short-term investment securities amounted to $55.77 million, providing adequate working capital for the next twelve months[210]. - The net loss on the sale of OREO properties was $28 thousand in 2024, compared to $84 thousand in 2023 and $453 thousand in 2022[193]. - Cash and cash equivalents at the end of the period increased significantly to $377,454 thousand from $116,420 thousand in 2022, marking a rise of 224%[237].

Financial Performance - Net income for Q4 2024 was $13.04 million, a 10.65% increase from Q4 2023, while annual net income reached $51.60 million, up 7.46% year-over-year[6]. - Net income for Q4 2024 reached $13,040,000, compared to $13,033,000 in Q3 2024 and $11,784,000 in Q4 2023, reflecting a year-over-year increase of 10.7%[14]. - Adjusted net income for diluted earnings per share for Q4 2024 was $13,040,000, compared to $12,314,000 in Q4 2023, representing a 5.9% increase[17]. - The company reported a total of $52,345,000 in adjusted earnings for the year ended December 31, 2024, compared to $54,741,000 in 2023, marking a decrease of 4.4%[17]. Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.31 per share and a special cash dividend of $2.07 per share, marking the 40th consecutive year of regular dividends[3][4]. - Cash dividends per common share for the year were $1.20, an increase from $1.16 in the previous year[14]. - The company plans to return excess earnings to shareholders through regular cash dividends and stock repurchases as part of its capital management strategy[5]. - The company repurchased 257,294 common shares during 2024 at a total cost of $8.72 million[9]. Asset and Liability Management - Total consolidated assets were $3.26 billion as of December 31, 2024, with a significant increase in cash and cash equivalents by 224.22% to $261.03 million[9][11]. - Total liabilities for the year ended December 31, 2024, were $2,718,938,000, with stockholders' equity of $514,385,000[23]. - Total assets increased to $3,261,216 thousand as of December 31, 2024, compared to $3,268,545 thousand a year earlier, reflecting a decrease of 0.2%[25]. - Total deposits rose to $2,691,247 thousand, up from $2,722,325 thousand a year ago, representing a decrease of 1.1%[25]. Loan and Credit Quality - Loans decreased by $156.21 million, or 6.07%, and securities available for sale decreased by $111.12 million, or 39.55%, compared to December 31, 2023[9]. - Non-performing loans to total loans increased to 0.83% compared to the same quarter of 2023, with net charge-offs of $1.48 million for Q4 2024[9]. - The allowance for credit losses to total loans was 1.44% at December 31, 2024, up from 1.41% at the end of 2023[13]. - The allowance for credit losses on loans was $34,825 thousand at the end of December 2024, down from $36,189 thousand a year earlier, a reduction of 3.8%[27]. - Nonperforming loans increased slightly to $20,153 thousand from $19,460 thousand year-over-year, an increase of 3.5%[27]. - The ratio of nonperforming loans to total loans was 0.83% as of December 31, 2024, compared to 0.76% a year earlier, indicating a deterioration in asset quality[27]. - The annualized net charge-offs to average loans was 0.24% for the quarter, compared to 0.14% a year earlier, indicating a rise in charge-off rates[27]. - The company reported a total allowance for credit losses to nonperforming loans ratio of 172.80% as of December 31, 2024, down from 185.97% a year earlier, suggesting a decrease in coverage for nonperforming loans[27]. Income and Expense Management - Total interest income for Q4 2024 was $36,432,000, a slight decrease from $36,892,000 in Q3 2024, but an increase from $36,002,000 in Q4 2023[14]. - Noninterest income totaled $10,337,000 in Q4 2024, slightly down from $10,452,000 in Q3 2024, but up from $9,342,000 in Q4 2023[15]. - Total noninterest expense for Q4 2024 was $24,107,000, compared to $24,177,000 in Q3 2024 and $26,780,000 in Q4 2023, indicating improved cost management[16]. - The provision for credit losses in Q4 2024 was $1,082,000, a decrease from $1,360,000 in Q3 2024 and significantly lower than $1,029,000 in Q4 2023[14]. - The company incurred litigation expenses of $1,800,000 in Q4 2024, which impacted the overall adjusted earnings[17]. Shareholder Equity and Book Value - Book value per share increased to $28.73, reflecting a $1.53 increase from year-end 2023[13]. - The book value per common share increased to $28.73 from $27.20 year-over-year, reflecting a growth of 5.6%[25]. - The total stockholders' equity rose to $526,392 thousand, up from $503,294 thousand a year earlier, an increase of 4.6%[25]. Interest Rates and Margins - The net interest rate spread for Q4 2024 was 3.94%, slightly down from 4.09% in Q4 2023[20]. - The average balance of interest-bearing deposits for Q4 2024 was $1,792,818,000, with a total interest expense of $5,098,000, resulting in an interest rate of 1.13%[20]. - The company’s net interest income after provision for credit losses was $30,251,000 in Q4 2024, slightly down from $30,234,000 in Q3 2024 but up from $31,034,000 in Q4 2023[14]. - Total earning assets for Q4 2024 were $2,866,703,000, with a net interest income of $31,443,000, resulting in a net interest margin of 4.36%[20]. - The average balance of loans for the year ended December 31, 2024, was $2,481,215,000, generating interest income of $130,196,000 at a yield of 5.25%[23].

Core Viewpoint - First Community Bankshares, Inc. reported a net income of $13.04 million for Q4 2024, marking a 10.65% increase from the same quarter in 2023, and a total net income of $51.60 million for the year, up 7.46% from 2023 [1][6]. Financial Performance - The company declared a quarterly cash dividend of $0.31 per common share and a special cash dividend of $2.07 per common share, marking the 40th consecutive year of regular dividends [2][3]. - Net interest income decreased by $730 thousand compared to Q4 2023, primarily due to increased rates on interest-bearing deposits [6]. - Noninterest income decreased by approximately $125 thousand, or 1.19%, compared to the same quarter in 2023 [6]. - Noninterest expense decreased by $2.67 million, or 9.98%, compared to the same period in 2023, largely due to a litigation expense recorded in Q4 2023 [6]. Capital Management - The company has maintained a strong capital base, returning earnings not needed for growth through regular cash dividends and stock repurchases [3]. - Over the last four years, the company earned approximately $197.45 million, paying regular dividends of $79.68 million and repurchasing shares for $81.95 million [3]. - The Board of Directors confirmed sufficient surplus capital to support anticipated growth opportunities after the special dividend payment of approximately $37.92 million [3]. Asset Quality - Consolidated assets totaled $3.26 billion as of December 31, 2024, with loans decreasing by $156.21 million, or 6.07%, from December 31, 2023 [6][12]. - Non-performing loans to total loans increased to 0.83% compared to the same quarter in 2023, with net charge-offs for Q4 2024 at $1.48 million, or 0.24% of annualized average loans [6]. - The allowance for credit losses to total loans was 1.44% at December 31, 2024, compared to 1.41% at December 31, 2023 [12]. Stock Performance - The book value per share at December 31, 2024, was $28.73, an increase of $1.53 from year-end 2023 [12][23]. - The company did not repurchase any common shares during Q4 2024 but repurchased 257,294 common shares during 2024 at a total cost of $8.72 million [6].

Financial Performance - Net income for Q3 2024 was $13.03 million, a decrease of $1.61 million, or 10.98%, compared to Q3 2023[129] - Net income for the three months ended September 30, 2024, was $13,033,000, a decrease of 11% from $14,640,000 in the same period of 2023[13] - For the nine months ended September 30, 2024, net income was $38,564,000, compared to $36,236,000 for the same period in 2023, showing an increase of about 6.4%[17] - Basic earnings per share for the three months ended September 30, 2024, was $0.71, down from $0.78 in the same period of 2023[90] - Total comprehensive income for the three months ended September 30, 2024, was $17,038,000, compared to $11,657,000 in the prior year, an increase of 46.2%[14] Income and Expenses - Net interest income decreased by $1.75 million compared to the same quarter in 2023, primarily due to increased rates on interest-bearing deposits[129] - 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[129] - Total noninterest expense increased to $24,177,000, up from $22,913,000, representing a rise of 5.5% year-over-year[13] - Noninterest expense increased by $1.26 million, or 5.52%, in Q3 2024 compared to Q3 2023, primarily due to increases in other operating expenses and salaries[154] Assets and Liabilities - Consolidated assets totaled $3.22 billion as of September 30, 2024[129] - Total assets as of September 30, 2024, were $3,228,976 thousand, a decrease from $3,248,251 thousand in the previous year[138] - Total liabilities and stockholders' equity of $3,224,361,000 as of September 30, 2024, down from $3,268,545,000 at the end of 2023, a decrease of 1.3%[12] - Total deposits as of September 30, 2024, decreased by $63.07 million, or 2.32%, with the largest decreases in noninterest-bearing demand deposits of $62.20 million, or 6.67%[183] Loans and Credit Quality - Loans decreased by $128.19 million, or 4.98%, from December 31, 2023[129] - Non-performing loans to total loans increased to 0.82% compared to the same quarter of 2023[129] - The allowance for credit losses to total loans was 1.44% at September 30, 2024, compared to 1.39% for September 30, 2023[129] - The provision for credit losses for loans was $1.36 million in Q3 2024, compared to $1.32 million in Q3 2023, reflecting an increase of $251 thousand[149] Equity and Capital Ratios - Stockholders' equity increased to $510,973 thousand as of September 30, 2024, compared to $472,774 thousand in 2023[138] - Total stockholders' equity increased to $520,694,000 as of September 30, 2024, compared to $503,294,000 at the end of 2023, reflecting a growth of 3.4%[12] - Common equity Tier 1 ratio improved to 13.76% as of September 30, 2024, up from 12.97% as of December 31, 2023[191] - Total risk-based capital ratio increased to 15.02% as of September 30, 2024, compared to 14.22% as of December 31, 2023[191] Shareholder Actions - The Company repurchased 12,854 common shares during Q3 2024 at a total cost of $469 thousand[129] - Common dividends declared increased from $0.29 per share in Q3 2023 to $0.31 per share in Q3 2024, representing a growth of about 6.9%[16] Market and Economic Conditions - The Federal Open Market Committee set the benchmark federal funds rate to a range of 475 to 500 basis points as of September 30, 2024[196] - The sensitivity of net interest income to a 200 basis point increase in interest rates is projected to be $1.415 million, representing a 1.1% change as of September 30, 2024[196] Acquisitions and Investments - The company completed the Surrey acquisition, adding approximately $68,357,000 to the common stock outstanding[17] - The total purchase price for the acquisition of Surrey Bancorp was $71.37 million, with 2,996,786 shares of common stock issued at a price of $23.81 per share[30][35] Risk Management - The company continues to monitor loan performance closely, particularly in the commercial and industrial sectors, which showed the highest write-offs[59] - Future strategies may involve enhancing risk management practices to mitigate potential losses in the loan portfolio[59]

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].