Financial Performance - Net income for 2024 was $51.60 million, an increase of 7.46% compared to $48.02 million in 2023[152]. - Basic earnings per common share rose to $2.81 in 2024, up 5.24% from $2.67 in 2023[152]. - Annual net income was $51.60 million, or $2.80 per diluted common share, an increase of $3.58 million, or 7.46%, compared to 2023[154]. - Annualized return on average assets (ROA) was 1.60% for 2024, compared to 1.48% for 2023; annualized return on average common equity (ROE) was 10.03% for 2024, compared to 10.02% for 2023[154]. - Net income for 2023 was $51,604,000, a 5.5% increase from $48,020,000 in 2022[231]. - Earnings per common share (basic) for 2023 was $2.81, compared to $2.67 in 2022, reflecting a 5.2% increase[228]. Income and Expenses - Net interest income for 2024 totaled $126.47 million, a decrease of 0.95% from $127.68 million in 2023[152]. - Non-interest income increased by 5.17% to $39.47 million in 2024, compared to $37.53 million in 2023[152]. - Non-interest expense increased by 1.46% to $96.66 million in 2024, compared to $95.27 million in 2023[152]. - Total noninterest expense increased to $96,567,000 in 2023, up from $95,177,000 in 2022, representing a 1.5% rise[228]. - The provision for credit losses decreased to $3,597 thousand in 2023 from $7,985 thousand in 2022, a reduction of approximately 55%[237]. Credit Losses and Allowances - Provision for credit losses decreased by 54.95% to $3.60 million in 2024, down from $7.99 million in 2023[152]. - The allowance for credit losses to total loans was 1.44% at December 31, 2024, compared to 1.41% for the same period of 2023[154]. - The allowance for credit losses (ACL) is reviewed quarterly to ensure it is sufficient to absorb expected credit losses, with significant estimates and assumptions involved[267]. - The ACL is calculated using collectively evaluated and individually evaluated loans, reflecting management's best estimate of expected credit losses[269]. Asset and Loan Portfolio - Total assets decreased by $7.33 million, or 0.22%, to $3.26 billion as of December 31, 2024, with loans decreasing by $156.21 million, or 6.07%[176]. - Total loans held for investment decreased by $156.21 million, or 6.07%, as of December 31, 2024, compared to December 31, 2023[181]. - Loans held for investment decreased to $2.416 billion in 2024 from $2.572 billion in 2023, indicating a contraction in the loan portfolio[225]. - The total loans portfolio was $2.42 billion as of December 31, 2024[183]. - Commercial loans represented 65.46% of total loans as of December 31, 2024, compared to 64.59% in 2023[334]. Capital and Equity - Total stockholders' equity increased by $23.10 million, or 4.59%, to $526.39 million as of December 31, 2024, primarily due to earnings of $51.60 million offset by dividends of $22.02 million[213]. - The common equity Tier 1 ratio improved to 16.75% as of December 31, 2024, compared to 14.69% in 2023, indicating strong capital adequacy[214]. - The total risk-based capital ratio rose to 18.00% in 2024 from 15.94% in 2023, reflecting enhanced capital strength[214]. Acquisitions and Goodwill - The acquisition of Surrey Bancorp added $466.25 million in total assets and resulted in $14.38 million in goodwill[140]. - Goodwill recognized from the Surrey acquisition amounted to $14.38 million, with core deposit intangibles totaling $12.70 million[311]. - The Company incurred $2.99 million in merger expenses related to the Surrey transaction, with $2.39 million recorded in the first nine months of 2023[310]. Market and Securities - The fair value of available-for-sale debt securities as of December 31, 2024, was $169.85 million, with an amortized cost of $184.69 million[320]. - There were 103 individual debt securities in an unrealized loss position as of December 31, 2024, representing 8.74% of the debt securities portfolio[323]. - The total amortized cost of available-for-sale U.S. Treasury securities was $55.76 million, with no credit losses attributed to them as of December 31, 2024[326]. Liquidity and Cash Flow - As of December 31, 2024, the company's cash reserves totaled $3.95 million and short-term investment securities amounted to $55.77 million, providing adequate working capital for the next twelve months[210]. - The net loss on the sale of OREO properties was $28 thousand in 2024, compared to $84 thousand in 2023 and $453 thousand in 2022[193]. - Cash and cash equivalents at the end of the period increased significantly to $377,454 thousand from $116,420 thousand in 2022, marking a rise of 224%[237].
First munity Bancshares(FCBC) - 2024 Q4 - Annual Report