First munity (FCCO) - 2024 Q4 - Annual Results

Financial Performance - Net income for Q4 2024 was $4.232 million, up 28.3% from$ 3.297 million in Q4 2023, and diluted EPS increased to $0.55 from$ 0.43[3] - Net income for the three months ended December 2024 was $4,232 thousand, a 28.4% increase from$ 3,297 thousand in December 2023[28] - Net income (GAAP) for December 2024 was $4,232 million, compared to$ 3,861 million in December 2023, reflecting a year-over-year increase of 9.6%[31] Deposits and Loans - Total deposits grew by $164.9 million, or 10.9%, year-over-year, reaching$ 1.676 billion as of December 31, 2024[11] - Total deposits increased to $1,675,901 thousand as of December 31, 2024, compared to$ 1,644,064 thousand as of September 30, 2024[26] - Average deposits rose to $1,661,782 thousand in December 2024, up from$ 1,498,773 thousand in December 2023, reflecting an increase of 10.9%[27] - Total loan growth for 2024 was $86.5 million, representing a 7.6% annual growth rate, with Q4 2024 loan growth at$ 23.9 million, or 2.0%[10] - Average loans increased to $1,211,880 thousand in December 2024, up from$ 1,121,383 thousand in December 2023, indicating an increase of 8.1%[27] Income and Revenue - Investment advisory revenue for Q4 2024 was $1.720 million, with assets under management increasing to$ 926.0 million from $755.4 million year-over-year[5] - Total non-interest income for Q4 2024 was$ 3.608 million, up from $3.570 million in Q3 2024 and$ 2.931 million in Q4 2023, with total non-interest income for 2024 reaching $14.004 million compared to$ 10.421 million in 2023[18] - Non-interest income for the twelve months ended December 2024 was $14,004 thousand, compared to$ 10,421 thousand in 2023, marking a significant increase of 34.5%[28] Expenses and Efficiency - Total non-interest expense decreased to $11.826 million in Q4 2024 from$ 11.991 million in Q3 2024, with a planned decrease in marketing expenses of $267 thousand[20] - The efficiency ratio improved to 66.67% in December 2024, compared to 69.92% in December 2023, indicating better cost management[28] Assets and Capital - Total assets as of December 31, 2024, were$ 1,958,021 thousand, an increase from $1,943,548 thousand as of September 30, 2024[26] - Shareholders' equity increased to$ 143,726 million as of December 31, 2024, compared to $124,866 million in 2023, reflecting a growth of 15.1%[29] - The bank's tangible book value per share increased to$ 16.93 as of December 31, 2024, compared to $15.23 a year prior[7] Capital Ratios - Regulatory capital ratios exceeded minimum requirements, with the Tier I Risk Based ratio at 12.87% as of December 31, 2024, up from 12.53% a year earlier[6] - The Tier 1 Capital Ratio was 12.87% as of December 31, 2024, compared to 12.93% as of September 30, 2024[26] Risk Management - The bank's non-performing assets ratio remained low at 0.04% at year-end 2024, with past due loans at 0.05%[8] - Net charge-offs to average loans were reported at (0.01%) for the three months ended December 2024, indicating effective credit risk management[27] - The company anticipates potential risks including competitive pressures, changes in interest rates, and economic conditions that may impact future performance[23] Shareholder Returns - The company declared a cash dividend of$ 0.15 per common share, marking the 92nd consecutive quarter of dividends[6] - The company has a share repurchase plan approved for up to $7.1 million, representing approximately 4.9% of total shareholders' equity as of December 31, 2024[6] Interest Income and Margin - Net interest income for 2024 increased by 6.4% to$ 52.0 million compared to $48.9 million in 2023, with a net interest margin of 3.00% for Q4 2024[16] - Net interest income rose to$ 13,857 thousand for the three months ended December 2024, up from $12,295 thousand in December 2023, reflecting a growth of 12.7%[28] - The yield on loans improved to 5.61% for the twelve months ended December 31, 2024, compared to 4.99% in the previous year, indicating a rise of 62 basis points[30] - The net interest margin (tax equivalent) for the twelve months ended December 31, 2024, was 2.92%, slightly down from 3.01% in 2023[30] Other Financial Metrics - Tangible common equity per common share (non-GAAP) increased to$ 16.93 in December 2024 from $15.23 in December 2023, reflecting a year-over-year growth of 11.2%[31] - Book value per common share (GAAP) rose to$ 18.90 in December 2024, up from $17.23 in December 2023, indicating a growth of 9.7%[31] - Return on average tangible common equity (non-GAAP) improved to 13.09% in December 2024 compared to 11.44% in December 2023, representing an increase of 1.65 percentage points[31]