First munity Bancshares(FCBC) - 2021 Q4 - Annual Report

Financial Performance - Annual net income for 2021 was $51.17 million, or $2.94 per diluted common share, representing a 45.54% increase in diluted earnings per share compared to 2020 [195]. - Net income for the year 2021 was $51,168,000, compared to $35,926,000 in 2020, reflecting a growth of 42.24% [295]. - Basic earnings per common share rose to $2.95 in 2021 from $2.02 in 2020, an increase of 46.02% [295]. - Total comprehensive income for 2021 was $51,545,000, compared to $35,509,000 in 2020, reflecting a growth of 45.24% [297]. - The company earned $51.17 million in 2021, offset by repurchasing 949,386 shares totaling $28.88 million and declaring dividends of $18.06 million [276]. Asset Management - As of December 31, 2021, the Company managed and administered $1.32 billion in combined assets through its Trust Division and First Community Wealth Management [165]. - Total assets increased to $3,194,519,000 in December 2021 from $3,011,136,000 in December 2020, representing a growth of 6.08% [292]. - Total assets increased to $3,134,828 thousand, reflecting growth in earning assets [200]. - Total liabilities grew to $2,766,744,000 in December 2021, up from $2,584,406,000 in December 2020, a rise of 7.03% [292]. Loan and Credit Quality - The allowance for credit losses increased by $13.11 million due to the adoption of ASU 2016-13 on January 1, 2021, but a reversal of provision for credit losses of $8.47 million occurred in 2021 [170]. - The allowance for credit losses to total loans was 1.29% as of December 31, 2021, compared to 1.20% for 2020, indicating strong credit quality metrics [195]. - The provision for credit/loan losses decreased by $21.14 million, or 166.87%, due to improved economic forecasts and strong credit quality metrics [211]. - The company modified a total of 4,066 loans for $475.82 million related to COVID-19 relief, which are not considered TDRs under the CARES Act [247]. - Nonperforming assets decreased by $1.33 million, or 5.42%, from December 31, 2020, primarily due to a $1.24 million decrease in nonaccrual loans [244]. Income and Expenses - Non-interest income increased by 14.98% to $34.30 million, attributed to increased customer activity in local economies [195]. - Noninterest expense decreased by $907 thousand, or 1.14%, primarily due to residual merger expenses recognized in the previous year [217]. - Income tax expense increased by $5.17 million, or 50.80%, primarily attributable to the increase in pre-tax net income [220]. - Net interest income decreased by $6.10 million, or 5.62%, due to a historically low interest rate environment [195]. Capital and Liquidity - The Company maintained capital ratios in excess of minimum standards under Basel III capital rules as of December 31, 2021 [175]. - The company continues to meet all capital adequacy requirements and is classified as well-capitalized under regulatory frameworks [175]. - The common equity Tier 1 ratio was 14.39% as of December 31, 2021, compared to 14.28% in 2020 [279]. - The total risk-based capital ratio was 15.65% as of December 31, 2021, up from 15.53% in 2020 [279]. - The company maintained a liquidity risk management policy to detect potential liquidity issues and protect stakeholders [269]. Shareholder Activities - The company repurchased 949,386 common shares, representing 5.62% of outstanding shares, for $28.88 million [195]. - Cash dividends per common share increased to $1.04 in 2021 from $1.00 in 2020, a growth of 4% [295]. - The total stockholders' equity increased by $1.05 million, or 0.24%, to $427.78 million as of December 31, 2021, from $426.73 million in 2020 [276]. Economic Impact and COVID-19 Response - As of December 31, 2021, current COVID-19 loan deferrals stood at $2.92 million, a decrease from $32.26 million as of December 31, 2020 [182]. - The Company modified 4,066 commercial and consumer loans totaling $475.82 million under the CARES Act provisions by December 31, 2021 [182]. - The SBA forgave $56.86 million, or 93.20%, of the company's first round Paycheck Protection Program loan balances through December 31, 2021 [195]. Investment and Securities - Total securities available for sale amounted to $76,273,000 as of December 31, 2021, a slight decrease from $81,958,000 in 2020, representing a decline of 7.5% [230]. - The fair value of total securities available for sale was $76,292,000 as of December 31, 2021, compared to $83,358,000 in 2020, a decrease of 8.5% [230]. - The total carrying value of long-term equity investments was $3.85 million as of December 31, 2021, down from $3.93 million as of December 31, 2020 [322].