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