First Bank(US:FBNC)2024-10-23 20:05Financial Performance - The Company reported net income of $18.7 million, or $0.45 per diluted share, for Q3 2024, down from $28.7 million, or $0.70 per diluted share, in Q2 2024, and $29.9 million, or $0.73 per diluted share, in Q3 2023[1][2][4]. - Net income for Q3 2024 was $18,680,000, a decrease from $29,893,000 in Q3 2023[42]. - Tangible net income for Q3 2024 was $19,920,000, compared to $32,527,000 in Q3 2023[42]. - Adjusted net income for Q3 2024 was $28,974,000, with an adjusted EPS of $0.70[47]. - Income before income taxes was $22,572,000, a decrease from $36,884,000 in the previous quarter[32]. - Basic and diluted earnings per share were $0.45, compared to $0.73 in the previous quarter[32]. - Return on average assets for Q3 2024 was 0.61%, a decrease from 0.99% in Q3 2023[35]. - Return on average common equity for Q3 2024 was 5.48%, down from 9.90% in Q3 2023[42]. - Return on average tangible common equity for Q3 2024 was 8.30%, down from 15.98% in Q3 2023[42]. Credit Losses and Provisions - An additional provision for credit losses of $13 million was taken in response to Hurricane Helene, contributing to a total provision of $14.2 million for Q3 2024[2][11]. - Provision for credit losses was $14,200,000, reflecting an increase in credit risk[32]. - The company incurred a provision for credit losses of $13,000,000 in Q3 2024[47]. - The annualized net loan charge-offs for Q3 2024 were 0.11%, compared to 0.07% in the linked quarter and 0.11% in the same quarter last year[13][14]. Assets and Liabilities - Total assets increased to $12.2 billion, up $92.6 million or 3.06% annualized from the previous quarter[18]. - Total assets as of September 30, 2024, reached $12,153,430, an increase from $11,977,960 on December 31, 2023, representing a growth of approximately 1.5%[34]. - Total liabilities and shareholders' equity stood at $12,126,613 thousand, reflecting a stable financial position[38]. - Total loans amounted to $8.0 billion as of September 30, 2024, reflecting a decrease of $56.3 million from the linked quarter and $13.5 million year-over-year[4]. - Total loans decreased to $8.0 billion, down $56.3 million or 2.8% from the previous quarter[19]. Deposits and Equity - Customer deposits grew by $56.6 million during Q3 2024, while brokered deposits decreased by $39.5 million, resulting in a net increase of $17.1 million in total deposits[4]. - Total deposits reached $10.5 billion, an increase of $17.1 million or 0.6% from the previous quarter[21]. - Total deposits as of September 30, 2024, were $10,504,929, slightly up from $10,235,403 on December 31, 2023, showing a growth of about 2.6%[34]. - Shareholders' equity rose to $1.45 billion, a 4.8% increase from the previous quarter[18]. - The tangible common equity to tangible assets ratio increased to 8.47%, up 57 basis points from the previous quarter[25]. - Tangible common equity as of September 30, 2024, was $988,386,000, an increase from $763,002,000 in Q3 2023[45]. Income and Expenses - Noninterest income for Q3 2024 was $13.6 million, a decrease of 7.3% from the linked quarter and 10.5% from the same quarter last year[15]. - Total noninterest expenses for Q3 2024 were $59.9 million, an increase of 2.7% from the linked quarter, primarily due to higher salaries and incentives[16]. - Total noninterest expenses increased to $59,850,000 from $58,291,000 in the previous quarter[32]. - Interest on deposits rose to $46,420,000 from $44,744,000 in the previous quarter[32]. Interest Income and Margins - The tax-equivalent net interest margin (NIM) increased to 2.90% for Q3 2024, up 3 basis points from 2.87% in the linked quarter, but down from 2.97% in the same quarter last year[3][6]. - Net interest income after provision for credit losses decreased to $68,843,000 from $80,527,000 in the previous quarter[32]. - Total interest income for the three months ended June 30, 2024, was $131,409,000, an increase from $128,775,000 in the previous quarter[32]. - Net interest income for the third quarter was $83,043 thousand, reflecting a net yield on interest-earning assets of 2.88%[38]. - Total interest-earning assets increased to $11,489,227 thousand with a yield of 4.55% for the quarter ended September 30, 2024, compared to $11,462,112 thousand and 4.52% in the previous quarter[38]. Future Outlook - The company anticipates continued focus on market expansion and integration of acquisitions in future strategies[30].