First munity Bancshares(FCBC) - 2025 Q4 - Annual Results

Financial Performance - Net income for Q4 2025 was $12.46 million, a decrease of $575 thousand, or 4.41%, compared to Q4 2024[5] - Annual net income for 2025 was $48.79 million, down $2.81 million, or 5.45%, from 2024[5] - Net income for Q4 2025 reached $12,465,000, compared to $12,266,000 in Q3 2025, reflecting a growth of 1.6%[13] - Adjusted net income for diluted earnings per share for Q4 2025 was $12,465,000, compared to $12,266,000 in Q3 2025, reflecting an increase of 1.6%[16] - Adjusted diluted earnings per share for the year ended December 31, 2025, was $2.78, down from $2.84 in 2024, indicating a decrease of 2.1%[16] Dividends - The company declared a quarterly cash dividend of $0.31 per share, marking the 40th consecutive year of regular dividends[2] - The company declared a regular cash dividend of $0.31 per share for Q4 2025, maintaining the same level as previous quarters[13] Assets and Liabilities - Total consolidated assets were $3.26 billion as of December 31, 2025[11] - The total assets as of December 31, 2025, were $3,229,049,000, with stockholders' equity of $513,581,000[18] - Total assets increased to $3,259,643 thousand as of December 31, 2025, up from $3,189,613 thousand on September 30, 2025, representing a growth of 2.19%[24] - Total deposits rose to $2,685,329 thousand, an increase of 2.08% from $2,630,593 thousand in the previous quarter[24] Loan Performance - Non-performing loans to total loans decreased to 0.61%, a reduction of 0.22% compared to Q4 2024[11] - Nonperforming loans to total loans ratio improved to 0.61% from 0.71%, indicating better asset quality[26] - Loans held for investment, net, decreased slightly to $2,283,994 thousand from $2,299,708 thousand, a decline of 0.67%[24] - Net charge-offs for the quarter were $836 thousand, compared to $1,423 thousand in the previous quarter, showing a significant improvement[26] Income and Expenses - Noninterest income increased by approximately $1.09 million, or 10.57%, compared to Q4 2024[5] - Noninterest income increased to $11,429,000 in Q4 2025, up from $10,889,000 in Q3 2025, marking an increase of 5.0%[14] - Total noninterest expense for Q4 2025 was $27,624,000, an increase from $26,279,000 in Q3 2025, representing a rise of 5.1%[15] - The provision for credit losses was $36,000 in Q4 2025, a significant improvement compared to a provision of $(285,000) in Q3 2025[13] Interest Metrics - Net interest margin for Q4 2025 was 4.53%, an increase of 17 basis points from Q4 2024[5] - Total interest income for Q4 2025 was $36,279,000, a slight increase from $35,699,000 in Q3 2025[13] - The total interest expense decreased to $3,918,000 in Q4 2025 from $4,402,000 in Q3 2025, indicating a reduction of 11.0%[13] - Total interest-bearing deposits for Q4 2025 were $1,774,136,000, with a net interest rate spread of 0.88%[18] Equity and Book Value - Book value per share decreased to $27.30, down $1.43 from year-end 2024, primarily due to special dividends declared in 2025[11] - The book value per common share was $27.30, down from $27.89 in the previous quarter[24] - The tangible book value per common share decreased to $18.84 from $19.40, reflecting a decline of 2.88%[24] Merger and Acquisitions - The acquisition of Hometown Bancshares, Inc. was completed on January 23, 2026, with Hometown having total assets of approximately $415 million[4] - The company incurred merger expenses of $2,125,000 in Q4 2025, contributing to total adjustments of $2,125,000 for the quarter[16] Ratios and Returns - Return on average assets for Q4 2025 was 1.53%, unchanged from Q3 2025[13] - Return on average common equity for Q4 2025 was 9.63%, slightly up from 9.58% in Q3 2025[13] - Adjusted return on average assets for Q4 2025 was 1.74%, an increase from 1.60% in Q3 2025[16] - The adjusted return on average common equity for Q4 2025 was 10.94%, up from 10.08% in Q3 2025[16] - The company reported a total allowance for credit losses to nonperforming loans ratio of 217.35%, indicating strong coverage for potential losses[26]