Financial Performance - Net income for Q3 2024 was $13.03 million, a decrease of $1.61 million, or 10.98%, compared to Q3 2023[129] - Net income for the three months ended September 30, 2024, was $13,033,000, a decrease of 11% from $14,640,000 in the same period of 2023[13] - For the nine months ended September 30, 2024, net income was $38,564,000, compared to $36,236,000 for the same period in 2023, showing an increase of about 6.4%[17] - Basic earnings per share for the three months ended September 30, 2024, was $0.71, down from $0.78 in the same period of 2023[90] - Total comprehensive income for the three months ended September 30, 2024, was $17,038,000, compared to $11,657,000 in the prior year, an increase of 46.2%[14] Income and Expenses - Net interest income decreased by $1.75 million compared to the same quarter in 2023, primarily due to increased rates on interest-bearing deposits[129] - Noninterest income increased by approximately $830 thousand, or 8.63%, compared to Q3 2023, including a gain of $825 thousand from the sale of two closed branch properties[129] - Total noninterest expense increased to $24,177,000, up from $22,913,000, representing a rise of 5.5% year-over-year[13] - Noninterest expense increased by $1.26 million, or 5.52%, in Q3 2024 compared to Q3 2023, primarily due to increases in other operating expenses and salaries[154] Assets and Liabilities - Consolidated assets totaled $3.22 billion as of September 30, 2024[129] - Total assets as of September 30, 2024, were $3,228,976 thousand, a decrease from $3,248,251 thousand in the previous year[138] - Total liabilities and stockholders' equity of $3,224,361,000 as of September 30, 2024, down from $3,268,545,000 at the end of 2023, a decrease of 1.3%[12] - Total deposits as of September 30, 2024, decreased by $63.07 million, or 2.32%, with the largest decreases in noninterest-bearing demand deposits of $62.20 million, or 6.67%[183] Loans and Credit Quality - Loans decreased by $128.19 million, or 4.98%, from December 31, 2023[129] - Non-performing loans to total loans increased to 0.82% compared to the same quarter of 2023[129] - The allowance for credit losses to total loans was 1.44% at September 30, 2024, compared to 1.39% for September 30, 2023[129] - The provision for credit losses for loans was $1.36 million in Q3 2024, compared to $1.32 million in Q3 2023, reflecting an increase of $251 thousand[149] Equity and Capital Ratios - Stockholders' equity increased to $510,973 thousand as of September 30, 2024, compared to $472,774 thousand in 2023[138] - Total stockholders' equity increased to $520,694,000 as of September 30, 2024, compared to $503,294,000 at the end of 2023, reflecting a growth of 3.4%[12] - Common equity Tier 1 ratio improved to 13.76% as of September 30, 2024, up from 12.97% as of December 31, 2023[191] - Total risk-based capital ratio increased to 15.02% as of September 30, 2024, compared to 14.22% as of December 31, 2023[191] Shareholder Actions - The Company repurchased 12,854 common shares during Q3 2024 at a total cost of $469 thousand[129] - Common dividends declared increased from $0.29 per share in Q3 2023 to $0.31 per share in Q3 2024, representing a growth of about 6.9%[16] Market and Economic Conditions - The Federal Open Market Committee set the benchmark federal funds rate to a range of 475 to 500 basis points as of September 30, 2024[196] - The sensitivity of net interest income to a 200 basis point increase in interest rates is projected to be $1.415 million, representing a 1.1% change as of September 30, 2024[196] Acquisitions and Investments - The company completed the Surrey acquisition, adding approximately $68,357,000 to the common stock outstanding[17] - The total purchase price for the acquisition of Surrey Bancorp was $71.37 million, with 2,996,786 shares of common stock issued at a price of $23.81 per share[30][35] Risk Management - The company continues to monitor loan performance closely, particularly in the commercial and industrial sectors, which showed the highest write-offs[59] - Future strategies may involve enhancing risk management practices to mitigate potential losses in the loan portfolio[59]
First munity Bancshares(FCBC) - 2024 Q3 - Quarterly Report