Financial Performance - Net income for Q4 2024 was $13.04 million, a 10.65% increase from Q4 2023, while annual net income reached $51.60 million, up 7.46% year-over-year[6]. - Net income for Q4 2024 reached $13,040,000, compared to $13,033,000 in Q3 2024 and $11,784,000 in Q4 2023, reflecting a year-over-year increase of 10.7%[14]. - Adjusted net income for diluted earnings per share for Q4 2024 was $13,040,000, compared to $12,314,000 in Q4 2023, representing a 5.9% increase[17]. - The company reported a total of $52,345,000 in adjusted earnings for the year ended December 31, 2024, compared to $54,741,000 in 2023, marking a decrease of 4.4%[17]. Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.31 per share and a special cash dividend of $2.07 per share, marking the 40th consecutive year of regular dividends[3][4]. - Cash dividends per common share for the year were $1.20, an increase from $1.16 in the previous year[14]. - The company plans to return excess earnings to shareholders through regular cash dividends and stock repurchases as part of its capital management strategy[5]. - The company repurchased 257,294 common shares during 2024 at a total cost of $8.72 million[9]. Asset and Liability Management - Total consolidated assets were $3.26 billion as of December 31, 2024, with a significant increase in cash and cash equivalents by 224.22% to $261.03 million[9][11]. - Total liabilities for the year ended December 31, 2024, were $2,718,938,000, with stockholders' equity of $514,385,000[23]. - Total assets increased to $3,261,216 thousand as of December 31, 2024, compared to $3,268,545 thousand a year earlier, reflecting a decrease of 0.2%[25]. - Total deposits rose to $2,691,247 thousand, up from $2,722,325 thousand a year ago, representing a decrease of 1.1%[25]. Loan and Credit Quality - Loans decreased by $156.21 million, or 6.07%, and securities available for sale decreased by $111.12 million, or 39.55%, compared to December 31, 2023[9]. - Non-performing loans to total loans increased to 0.83% compared to the same quarter of 2023, with net charge-offs of $1.48 million for Q4 2024[9]. - The allowance for credit losses to total loans was 1.44% at December 31, 2024, up from 1.41% at the end of 2023[13]. - The allowance for credit losses on loans was $34,825 thousand at the end of December 2024, down from $36,189 thousand a year earlier, a reduction of 3.8%[27]. - Nonperforming loans increased slightly to $20,153 thousand from $19,460 thousand year-over-year, an increase of 3.5%[27]. - The ratio of nonperforming loans to total loans was 0.83% as of December 31, 2024, compared to 0.76% a year earlier, indicating a deterioration in asset quality[27]. - The annualized net charge-offs to average loans was 0.24% for the quarter, compared to 0.14% a year earlier, indicating a rise in charge-off rates[27]. - The company reported a total allowance for credit losses to nonperforming loans ratio of 172.80% as of December 31, 2024, down from 185.97% a year earlier, suggesting a decrease in coverage for nonperforming loans[27]. Income and Expense Management - Total interest income for Q4 2024 was $36,432,000, a slight decrease from $36,892,000 in Q3 2024, but an increase from $36,002,000 in Q4 2023[14]. - Noninterest income totaled $10,337,000 in Q4 2024, slightly down from $10,452,000 in Q3 2024, but up from $9,342,000 in Q4 2023[15]. - Total noninterest expense for Q4 2024 was $24,107,000, compared to $24,177,000 in Q3 2024 and $26,780,000 in Q4 2023, indicating improved cost management[16]. - The provision for credit losses in Q4 2024 was $1,082,000, a decrease from $1,360,000 in Q3 2024 and significantly lower than $1,029,000 in Q4 2023[14]. - The company incurred litigation expenses of $1,800,000 in Q4 2024, which impacted the overall adjusted earnings[17]. Shareholder Equity and Book Value - Book value per share increased to $28.73, reflecting a $1.53 increase from year-end 2023[13]. - The book value per common share increased to $28.73 from $27.20 year-over-year, reflecting a growth of 5.6%[25]. - The total stockholders' equity rose to $526,392 thousand, up from $503,294 thousand a year earlier, an increase of 4.6%[25]. Interest Rates and Margins - The net interest rate spread for Q4 2024 was 3.94%, slightly down from 4.09% in Q4 2023[20]. - The average balance of interest-bearing deposits for Q4 2024 was $1,792,818,000, with a total interest expense of $5,098,000, resulting in an interest rate of 1.13%[20]. - The company’s net interest income after provision for credit losses was $30,251,000 in Q4 2024, slightly down from $30,234,000 in Q3 2024 but up from $31,034,000 in Q4 2023[14]. - Total earning assets for Q4 2024 were $2,866,703,000, with a net interest income of $31,443,000, resulting in a net interest margin of 4.36%[20]. - The average balance of loans for the year ended December 31, 2024, was $2,481,215,000, generating interest income of $130,196,000 at a yield of 5.25%[23].
First munity Bancshares(FCBC) - 2024 Q4 - Annual Results