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]

Core Viewpoint - First Community Bancshares (FCBC) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, making it a valuable tool for investors [2][4]. - The recent upgrade reflects an improvement in First Community Bancshares' earnings outlook, likely leading to increased buying pressure and a rise in stock price [3][5]. Earnings Estimate Revisions - For the fiscal year ending December 2024, First Community Bancshares is expected to earn $2.59 per share, representing a decrease of 14.8% from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for the company has increased by 8.8%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 1 places First Community Bancshares in the top 5% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [11].

Group 1 - Resonac Holdings Corporation has seen a 22.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Jackson Financial Inc. has experienced an 8.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - First Community Bankshares, Inc. has reported an 8.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Lightspeed Commerce Inc. has seen a significant 45% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4] - MINISO Group Holding Limited has experienced a 12.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [5]

Core Insights - The article highlights three stocks with a buy rank and strong income characteristics for investors to consider as of June 7th [1] Group 1: Dividend Yield - A Zacks Rank 1 company has a dividend yield of 3.4%, surpassing the industry average of 2.8% [1] - Another Zacks Rank 1 company has a dividend yield of 2.8%, compared to the industry average of 1.7% [2] - A different Zacks Rank 1 company shows a dividend yield of 2.7%, which is higher than the industry average of 2.5% [6] Group 2: Earnings Estimates - First Community Bankshares, Inc. (FCBC) has seen its Zacks Consensus Estimate for current year earnings increase by 8.8% over the last 60 days [3] - Resonac Holdings Corporation (SHWDY) has experienced a 22.5% increase in its Zacks Consensus Estimate for current year earnings over the last 60 days [4] - Sasol Limited (SSL) has had its Zacks Consensus Estimate for current year earnings rise by 6.7% in the past 60 days [5]

Group 1 - Janus Henderson Group plc (JHG) has seen a 10.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and offers a dividend yield of 4.5%, higher than the industry average of 2.8% [1] - First Community Bankshares, Inc. (FCBC) has experienced an 8.8% increase in the Zacks Consensus Estimate for its current year earnings in the last 60 days, with a dividend yield of 3.3%, compared to the industry average of 2.7% [2] - Superior Group of Companies, Inc. (SGC) has reported a 17.2% increase in the Zacks Consensus Estimate for its current year earnings over the past 60 days [2]

First Community Bancshares, Inc. (FCBC) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, FCBC's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving ...