First munity Bancshares(FCBC) - 2025 Q1 - Quarterly Results

Executive Summary First Community Bankshares, Inc. reported Q1 2025 net income of $11.82 million ($0.64 diluted EPS) and declared a $0.31 quarterly dividend, maintaining its 40-year payout history Q1 2025 Key Financial Metrics | Metric | Q1 2025 (Millions) | | :----- | :----------------- | | Net Income | $11.82 | | Diluted EPS | $0.64 | - The Company declared a quarterly cash dividend of $0.31 per common share, payable on May 23, 2025, to shareholders of record on May 9, 2025. This marks the 40th consecutive year of regular dividends to common shareholders[3] First Quarter 2025 Financial Highlights Q1 2025 highlights include a 4.34% net interest margin, 10.48% noninterest income growth, 0.85% non-performing loans, and total assets of $3.23 billion Q1 2025 Income Statement Highlights (in thousands, except as noted) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :-------------------------------- | :------ | :------ | :----------- | | Net Interest Margin | 4.34% | 4.47% | -13 bps | | Yield on Earning Assets | 5.04% | 5.09% | -5 bps | | Interest Income (decrease) | | | -$867k | | Noninterest Income (increase) | | | +$970k (10.48%) | | Noninterest Expense (increase) | | | +$1.56M (6.66%) | | Salaries and Benefits (increase) | | | +$754k (5.99%) | Q1 2025 Profitability Ratios | Metric | Q1 2025 | Q1 2024 | | :-------------------------- | :------ | :------ | | Annualized Return on Average Assets (ROA) | 1.49% | 1.60% | | Annualized Return on Average Common Equity (ROE) | 9.49% | 10.18% | Q1 2025 Balance Sheet and Asset Quality Highlights (vs. Dec 31, 2024) (in millions/billions, except as noted) | Metric | March 31, 2025 | Dec 31, 2024 | Change | | :-------------------------------- | :------------- | :----------- | :----- | | Consolidated Assets | $3.23 billion | $3.26 billion | -$33.39M | | Loans | $2.38 billion | $2.42 billion | -1.38% | | Securities Available for Sale | $129.66 million | $169.85 million | -23.66% | | Deposits | $2.68 billion | $2.69 billion | -0.25% | | Stockholder Equity | $496.42 million | $526.39 million | -5.69% | | Cash and Cash Equivalents | $414.68 million | $377.45 million | +9.86% | | Non-performing loans to total loans | 0.85% | 0.83% | +0.02% | | Net Charge-offs | $1.39 million | $1.48 million | -6.08% | | Allowance for Credit Losses to Total Loans | 1.42% | 1.44% | -0.02% | | Book Value per Share | $27.09 | $28.73 | -$1.64 | | Common Shares Repurchased | 0 | 0 | 0 | Non-GAAP Financial Measures Non-GAAP measures, including tangible book value and adjusted earnings, provide supplemental insights into financial performance, with reconciliations available - The Company uses non-GAAP financial measures like 'tangible book value per common share,' 'return on average tangible common equity,' 'adjusted earnings,' and 'adjusted diluted earnings per share' to aid financial and operational decision-making, evaluate trends, and compare results with other institutions[7] - These non-GAAP measures are supplemental to, not a substitute for, GAAP measures and may not be comparable to those reported by other financial institutions. Reconciliations to comparable GAAP measures are provided in the press release tables[7] Company Overview First Community Bankshares, Inc. operates 53 branches across four states, managing $1.62 billion in wealth assets and $3.23 billion in consolidated assets - First Community Bankshares, Inc. is a financial holding company based in Bluefield, Virginia, providing banking products and services through its subsidiary, First Community Bank[8] - As of March 31, 2025, First Community Bank operated 53 branch locations in Virginia, West Virginia, North Carolina, and Tennessee[8] Company Financial and Operational Snapshot (March 31, 2025) (in billions) | Metric | Value | | :-------------------------------- | :------------ | | Wealth Management Assets Managed | $1.62 billion | | Consolidated Assets | $3.23 billion | Forward-Looking Statements This section contains forward-looking statements, subject to various risks and uncertainties, with actual results potentially differing materially; the Company does not commit to updates - The news release includes forward-looking statements based on current expectations, which involve risks, uncertainties, and assumptions that could cause actual results to differ materially[9] - Key risks include changes in market conditions, challenges in managing asset/liability levels, credit and interest rate risk, expense growth, banking laws, competition, and geopolitical events. The Company does not commit to updating these statements[9] Condensed Consolidated Financial Statements This section presents unaudited condensed consolidated financial statements, including income, balance sheet, and credit quality data for Q1 2025 and comparative periods Condensed Consolidated Statements of Income This section details unaudited condensed consolidated statements of income, presenting key financial performance metrics for Q1 2025 and Q1 2024 Condensed Consolidated Statements of Income (Three Months Ended March 31) (Amounts in thousands) | (Amounts in thousands) | 2025 | 2024 | | :--------------------- | :------ | :------ | | Total interest income | $35,169 | $36,029 | | Total interest expense | $4,871 | $4,400 | | Net interest income | $30,298 | $31,629 | | Provision for credit losses | $321 | $1,011 | | Noninterest income | $10,229 | $9,259 | | Noninterest expense | $24,944 | $23,386 | | Income before income taxes | $15,262 | $16,491 | | Income tax expense | $3,444 | $3,646 | | Net income | $11,818 | $12,845 | Earnings and Dividends Per Common Share (Three Months Ended March 31) | Metric | 2025 | 2024 | | :-------------------------- | :---- | :---- | | Basic EPS | $0.64 | $0.70 | | Diluted EPS | $0.64 | $0.71 | | Regular Cash Dividends per Share | $0.31 | $0.29 | | Special Cash Dividend per Share | $2.07 | - | Performance Ratios (Three Months Ended March 31) | Metric | 2025 | 2024 | | :-------------------------------- | :------ | :------ | | Return on average assets | 1.49% | 1.60% | | Return on average common equity | 9.49% | 10.18% | | Return on average tangible common equity | 13.79% | 14.82% | Condensed Consolidated Quarterly Noninterest Income and Expense This section breaks down unaudited noninterest income and expense items for Q1 2025 and Q1 2024, highlighting specific revenue streams and operational costs Noninterest Income (Three Months Ended March 31) (Amounts in thousands) | (Amounts in thousands) | 2025 | 2024 | | :--------------------- | :------ | :------ | | Wealth management | $1,162 | $1,099 | | Service charges on deposits | $3,836 | $3,310 | | Other service charges and fees | $3,340 | $3,450 | | Other operating income | $1,891 | $1,400 | | Total noninterest income | $10,229 | $9,259 | Noninterest Expense (Three Months Ended March 31) (Amounts in thousands) | (Amounts in thousands) | 2025 | 2024 | | :--------------------- | :------ | :------ | | Salaries and employee benefits | $13,335 | $12,581 | | Occupancy expense | $1,576 | $1,378 | | Furniture and equipment expense | $1,575 | $1,545 | | Service fees | $2,484 | $2,449 | | Advertising and public relations | $1,055 | $796 | | Professional fees | $372 | $372 | | Amortization of intangibles | $524 | $530 | | FDIC premiums and assessments | $362 | $369 | | Other operating expense | $3,661 | $3,366 | | Total noninterest expense | $24,944 | $23,386 | Reconciliation of GAAP Net Income to Non-GAAP Adjusted Earnings This section reconciles GAAP net income to non-GAAP adjusted earnings and presents adjusted performance ratios, offering a clearer view of underlying financial performance Reconciliation of GAAP Net Income to Non-GAAP Adjusted Earnings (Three Months Ended March 31) (Amounts in thousands) | (Amounts in thousands) | 2025 | 2024 | | :--------------------- | :------ | :------ | | Adjusted Net Income for diluted EPS | $11,818 | $12,845 | | Total adjustments | - | - | | Tax effect | - | - | | Adjusted earnings, non-GAAP | $11,818 | $12,845 | | Adjusted diluted EPS, non-GAAP | $0.64 | $0.69 | Non-GAAP Adjusted Performance Ratios (Three Months Ended March 31) | Metric | 2025 | 2024 | | :-------------------------------- | :------ | :------ | | Adjusted return on average assets | 1.49% | 1.60% | | Adjusted return on average common equity | 9.49% | 10.18% | | Adjusted return on average tangible common equity | 13.79% | 14.82% | Average Balance Sheets and Net Interest Income Analysis This section analyzes average balance sheets and net interest income, detailing earning assets, interest-bearing liabilities, and their yields/rates for Q1 2025 and Q1 2024 Average Earning Assets and Yields (Three Months Ended March 31) (Amounts in thousands) | (Amounts in thousands) | 2025 Average Balance | 2025 Interest | 2025 Yield/Rate | 2024 Average Balance | 2024 Interest | 2024 Yield/Rate | | :--------------------- | :------------------- | :------------ | :-------------- | :------------------- | :------------ | :-------------- | | Loans | $2,395,068 | $30,757 | 5.21% | $2,549,107 | $33,500 | 5.29% | | Securities available for sale | $149,266 | $1,261 | 3.43% | $239,010 | $1,731 | 2.91% | | Interest-bearing deposits | $295,939 | $3,262 | 4.47% | $66,483 | $916 | 5.54% | | Total earning assets | $2,840,273 | $35,280 | 5.04% | $2,854,600 | $36,147 | 5.09% | Average Interest-Bearing Liabilities and Rates (Three Months Ended March 31) (Amounts in thousands) | (Amounts in thousands) | 2025 Average Balance | 2025 Interest | 2025 Yield/Rate | 2024 Average Balance | 2024 Interest | 2024 Yield/Rate | | :--------------------- | :------------------- | :------------ | :-------------- | :------------------- | :------------ | :-------------- | | Demand deposits | $658,651 | $180 | 0.11% | $665,875 | $162 | 0.10% | | Savings deposits | $891,148 | $3,311 | 1.51% | $866,084 | $3,412 | 1.58% | | Time deposits | $238,254 | $1,380 | 2.35% | $249,974 | $790 | 1.27% | | Total interest-bearing deposits | $1,788,053 | $4,871 | 1.10% | $1,781,933 | $4,364 | 0.98% | | Total borrowings | $1,071 | - | 0.06% | $3,654 | $35 | 3.85% | | Total interest-bearing liabilities | $1,789,124 | $4,871 | 1.10% | $1,785,587 | $4,399 | 0.99% | Net Interest Income and Margin (Three Months Ended March 31) | Metric | 2025 | 2024 | | :------------------ | :------ | :------ | | Net interest income, FTE | $30,409 | $31,748 | | Net interest rate spread | 3.94% | 4.10% | | Net interest margin, FTE | 4.34% | 4.47% | Condensed Consolidated Quarterly Balance Sheets This section presents unaudited condensed consolidated quarterly balance sheets, outlining key assets, liabilities, and equity positions for Q1 2025 and comparative periods Key Balance Sheet Assets (Period-End) (Amounts in thousands) | (Amounts in thousands) | March 31, 2025 | Dec 31, 2024 | March 31, 2024 | | :--------------------- | :------------- | :----------- | :------------- | | Cash and cash equivalents | $414,682 | $377,454 | $248,905 | | Debt securities available for sale | $129,659 | $169,849 | $166,247 | | Loans held for investment, net | $2,348,915 | $2,381,264 | $2,484,372 | | Goodwill | $143,946 | $143,946 | $143,946 | | Total assets | $3,225,773 | $3,261,216 | $3,235,981 | Key Balance Sheet Liabilities and Equity (Period-End) (Amounts in thousands) | (Amounts in thousands) | March 31, 2025 | Dec 31, 2024 | March 31, 2024 | | :--------------------- | :------------- | :----------- | :------------- | | Noninterest-bearing deposits | $893,794 | $883,499 | $902,396 | | Interest-bearing deposits | $1,790,683 | $1,807,748 | $1,779,819 | | Total deposits | $2,684,477 | $2,691,247 | $2,682,215 | | Total liabilities | $2,729,356 | $2,734,824 | $2,729,037 | | Total stockholders' equity | $496,417 | $526,392 | $506,944 | Book Value Per Common Share (Period-End) | Metric | March 31, 2025 | Dec 31, 2024 | March 31, 2024 | | :-------------------------- | :------------- | :----------- | :------------- | | Book value per common share | $27.09 | $28.73 | $27.53 | | Tangible book value per common share | $18.55 | $20.16 | $18.92 | Selected Credit Quality Information This section provides selected unaudited credit quality information, including allowance for credit losses, nonperforming assets, and key asset quality ratios for Q1 2025 and comparative periods Allowance for Credit Losses (Period-End) (Amounts in thousands) | (Amounts in thousands) | March 31, 2025 | Dec 31, 2024 | March 31, 2024 | | :--------------------- | :------------- | :----------- | :------------- | | Allowance for credit losses - loans | $33,784 | $34,825 | $35,461 | | Allowance for credit losses - loan commitments | $312 | $341 | $746 | | Ending balance | $34,096 | $35,166 | $36,207 | Nonperforming Assets (Period-End) (Amounts in thousands) | (Amounts in thousands) | March 31, 2025 | Dec 31, 2024 | March 31, 2024 | | :--------------------- | :------------- | :----------- | :------------- | | Nonaccrual loans | $19,974 | $19,869 | $19,617 | | Accruing loans past due 90 days or more | $117 | $149 | $30 | | Modified loans past due 90 days or more | $125 | $135 | - | | Total nonperforming loans | $20,216 | $20,153 | $19,647 | | OREO | $298 | $521 | $374 | | Total nonperforming assets | $20,514 | $20,674 | $20,021 | Asset Quality Ratios (Period-End) | Metric | March 31, 2025 | Dec 31, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :----------- | :------------- | | Nonperforming loans to total loans | 0.85% | 0.83% | 0.78% | | Nonperforming assets to total assets | 0.64% | 0.63% | 0.62% | | Allowance for credit losses to nonperforming loans | 167.12% | 172.80% | 180.49% | | Allowance for credit losses to total loans | 1.42% | 1.44% | 1.41% | | Annualized net charge-offs (recoveries) to average loans | 0.24% | 0.24% | 0.27% |