First munity (US:FCCO)2025-10-22 20:11Financial Performance - Net income for Q3 2025 was $5.192 million, a 34.5% increase year-over-year, and flat compared to Q2 2025[1] - Diluted EPS for Q3 2025 was $0.67, up 34.0% year-over-year, and flat on a linked quarter basis[2] - Net income for Q3 2025 was $5,007 thousand, down from $6,684 thousand in Q2 2025, a decrease of 25.1%[24] - The company reported a net income of $14,375,000 for the nine months ended September 30, 2025, compared to $9,723,000 for the same period last year, indicating a year-over-year increase of 47.56%[27] Asset and Loan Growth - Total loans increased by $19.3 million in Q3 2025, representing a 6.1% annualized growth rate[7] - Average loans rose to $1,280,814 thousand in Q3 2025, compared to $1,200,150 thousand in Q3 2024, marking a year-over-year increase of 6.7%[23] - Total assets as of September 30, 2025, were $2,066,598 thousand, an increase from $2,046,265 thousand as of June 30, 2025[22] - Total assets reached $2,051,815 thousand as of September 30, 2025, compared to $1,915,700 thousand a year earlier, marking an increase of 7.09%[25] Deposit Growth - Total deposits rose by $17.1 million in Q3 2025, with a 3.9% annualized growth rate[8] - Total deposits reached $1,771,164 thousand as of September 30, 2025, compared to $1,754,041 thousand in the previous quarter[22] - Average deposits increased to $1,754,654 thousand in Q3 2025, compared to $1,621,159 thousand in Q3 2024, representing a growth of 8.2%[23] Income and Expense Metrics - Total non-interest income for Q3 2025 was $4.469 million, a 25.2% increase year-over-year[12] - Non-interest expense for Q3 2025 was $13.674 million, up from $13.083 million in Q2 2025, with marketing expenses increasing by $349 thousand and merger-related expenses rising by $341 thousand[15] - Total non-interest expense for the nine months ended September 30, 2025, was $39,511 thousand, an increase from $35,639 thousand in the same period of 2024, reflecting a rise of 10.5%[24] Capital and Equity - The book value per common share increased to $21.01 as of September 30, 2025, from $20.23 in the prior quarter[22] - Shareholders' equity increased to $158,014 thousand as of September 30, 2025, from $139,154 thousand a year earlier, representing a growth of 13.54%[25] - Common equity to assets (GAAP) was 7.82% for September 30, 2025, up from 7.60% in the previous quarter, representing a growth of 0.22 percentage points[27] Efficiency and Profitability Ratios - Return on average common equity improved to 13.04% in Q3 2025, compared to 11.04% in Q2 2025[24] - The efficiency ratio improved to 64.44% in Q3 2025, down from 70.48% in Q2 2025, indicating better cost management[24] - Return on average tangible common equity (non-GAAP) improved to 14.40% for September 30, 2025, up from 12.39% in the same period last year, showing a significant increase of 2.01 percentage points[27] Acquisition and Strategic Initiatives - The company is in the process of acquiring Signature Bank of Georgia, with a special shareholder meeting scheduled for November 19, 2025, and financial closing expected in early Q1 2026[16] - The company approved a share repurchase plan of up to $7.5 million, representing approximately 4.6% of total shareholders' equity[4] Credit Quality - Non-performing assets (NPAs) ratio was 0.04%, indicating strong credit quality metrics[6] - Net charge-offs to average loans remained low at 0.00% for Q3 2025, compared to 0.02% in Q3 2024[23] Tax and Regulatory Considerations - The income tax expense in Q3 2025 benefited from South Carolina State tax credits amounting to $120,000[17] - The company faces risks related to the timely completion of the acquisition, regulatory approvals, and potential disruptions to client relationships[19]