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]
First munity Bancshares(FCBC) - 2024 Q2 - Quarterly Results