First munity Bancshares(US:FCBC)2022-08-04 16:00Financial Performance - Net income for the six months ended June 30, 2022, was $20,728 thousand, a decrease of 26.0% from $28,005 thousand for the same period in 2021[15]. - Net income for the three months ended June 30, 2022, was $11,213,000, a decrease of 16.3% compared to $13,403,000 for the same period in 2021[16]. - Total comprehensive income for the three months ended June 30, 2022, was $6,065,000, down from $13,493,000 in the prior year, reflecting a decline of 55.0%[16]. - Basic earnings per common share for the three months ended June 30, 2022, was $0.67, down from $0.77 for the same period in 2021, representing a decline of 12.9%[15]. - Diluted earnings per common share for the three months ended June 30, 2022, was also $0.67, compared to $0.76 in the same period of 2021, reflecting a decrease of 11.8%[15]. Assets and Liabilities - Total assets increased to $3,258,377 thousand as of June 30, 2022, compared to $3,194,519 thousand as of December 31, 2021, reflecting a growth of approximately 2.0%[11]. - Total liabilities increased to $2,840,331 thousand as of June 30, 2022, from $2,766,744 thousand as of December 31, 2021, representing a growth of about 2.7%[11]. - Total stockholders' equity as of June 30, 2022, was $418,046,000, down from $427,534,000 a year earlier[24]. - The allowance for credit losses increased to $29,749 thousand as of June 30, 2022, from $28,981 thousand at the end of the previous quarter, representing a rise of 2.6%[95]. Income and Expenses - Net interest income for the three months ended June 30, 2022, was $27,547 thousand, up from $25,814 thousand for the same period in 2021, representing an increase of about 6.7%[15]. - Noninterest income for the six months ended June 30, 2022, was $18,048 thousand, compared to $16,366 thousand for the same period in 2021, marking a growth of about 10.3%[15]. - Salaries and employee benefits for the six months ended June 30, 2022, increased to $23,189 thousand, compared to $21,100 thousand for the same period in 2021, an increase of approximately 9.9%[15]. - The provision for credit losses for the three months ended June 30, 2022, was $510 thousand, compared to a recovery of $(2,230) thousand for the same period in 2021[15]. Loans and Credit Quality - Total loans held for investment increased to $2,299,798 thousand as of June 30, 2022, up from $2,165,569 thousand at December 31, 2021, representing a growth of 6.19%[73]. - The risk grading matrix indicates that as of June 30, 2022, total loans classified as "Pass" amounted to $2,216,264 thousand, while "Special Mention" loans were $24,268 thousand[76]. - The company plans to continue monitoring credit quality closely, with a focus on loans that may require special attention due to economic conditions[75]. - The company reported a total of $2,216,264,000 in pass loans, down from $2,216,264,000 in the previous year[80]. Securities and Investments - The company reported a net unrealized loss on available-for-sale debt securities of $(6,550,000) for the three months ended June 30, 2022, compared to a gain of $17,000 in the same period last year[16]. - As of June 30, 2022, the total amortized cost of available-for-sale debt securities was $300.195 million, with a fair value of $287.767 million, indicating a total unrealized loss of $12.492 million[64]. - The total fair value of U.S. Treasury Notes was $134.243 million as of June 30, 2022, with unrealized losses of $2.176 million[64]. - The company continues to monitor all securities with a high degree of scrutiny, with no gross realized gains or losses from the sale of available-for-sale debt securities for the three and six months ended June 30, 2022[68]. Cash Flow and Capital Management - Net cash provided by operating activities increased to $28,200,000 from $19,709,000, reflecting a 43.3% increase[26]. - Cash and cash equivalents at the end of the period were $398,242,000, down from $618,738,000 at the end of the previous year[26]. - The company repurchased common shares at an average price of $28.03 per share during the second quarter of 2022, resulting in a total repurchase of $(7,948,000)[20]. - The company issued common stock to its 401(k) plan, resulting in an increase of $289,000 in paid-in capital during the six months ended June 30, 2022[23]. Regulatory and Accounting Changes - The Company adopted ASU 2016-13 on January 1, 2021, resulting in a cumulative-effect adjustment to retained earnings of $5.87 million[33]. - The Company does not anticipate a material impact from other recent accounting standards issued by the FASB[59]. - The Company has no plans to early adopt ASU 2022-02, which provides guidance for troubled debt restructuring, effective January 1, 2023[60]. - The Company adopted ASU 2019-12, which simplifies the accounting for income taxes, effective January 1, 2021, with no material effect on financial statements[58].