First munity Bancshares(US:FCBC)2021-05-06 16:00Financial Performance - Net income for March 2021 was $14,602, representing an increase of 85.5% compared to $7,872 in March 2020[14]. - Basic earnings per share (EPS) increased to $0.83 for basic shares, up from $0.44 in the same period last year[13]. - Net interest income for March 2021 was $26,282, a decrease of 5.1% from $27,682 in March 2020[13]. - Total interest income decreased to $27,151, down 8.3% from $29,509 year-over-year[13]. - Total noninterest income was $7,569, slightly up from $7,549 year-over-year[13]. - Total noninterest expense decreased to $18,820, down 13.5% from $21,664 in March 2020[13]. - Total comprehensive income for March 2021 was $13,870, an increase from $8,239 in March 2020[14]. - The effective tax rate increased to 23.28% in the first quarter of 2021 from 21.80% in the same quarter of 2020, with income tax expense rising by $2.24 million, or 101.82%[201]. Asset and Deposit Growth - Total assets increased to $3,140,066 thousand as of March 31, 2021, compared to $3,011,136 thousand as of December 31, 2020, reflecting a growth of approximately 4.3%[11]. - Total deposits rose to $2,673,100 thousand, up from $2,546,247 thousand, marking an increase of about 5%[11]. - Noninterest-bearing deposits increased to $824,576 thousand, up from $772,795 thousand, reflecting a growth of about 6.7%[11]. - Interest-bearing deposits also increased to $1,848,524 thousand from $1,773,452 thousand, showing an increase of approximately 4.2%[11]. - The company reported a total cash and cash equivalents of $628,745 thousand, up from $456,561 thousand, representing a significant increase of about 37.6%[11]. Loan Portfolio and Credit Quality - Loans held for investment, net, decreased to $2,112,077 thousand from $2,160,450 thousand, a decline of approximately 2.2%[11]. - The allowance for credit losses increased to $34,563 thousand, compared to $26,182 thousand, indicating a rise of about 32%[11]. - The provision for credit losses showed a recovery of $(4,001), compared to a provision of $3,500 in the previous year[13]. - The total amount of impaired loans with no related allowance was $39,225, with an unpaid principal balance of $45,306[88]. - Nonaccrual loans totaled $26,106, with a related allowance of $25,919 as of March 31, 2021[90]. - The company modified a total of 3,812 loans with principal balances of $466.59 million related to COVID-19 relief, primarily consisting of short-term payment deferrals[100]. - Total COVID-19 loan deferrals stood at $17.48 million as of March 31, 2021, reflecting the impact of the pandemic on borrower repayment capabilities[100]. Regulatory and Economic Environment - The company noted the impact of the COVID-19 pandemic on its operations and financial performance, highlighting ongoing risks and uncertainties[5]. - Forward-looking statements indicate potential challenges related to economic conditions, regulatory changes, and competition in the market[6]. - The Company continues to meet all capital adequacy requirements and is classified as well-capitalized under regulatory standards as of March 31, 2021[169]. Securities and Investments - As of March 31, 2021, the total amortized cost of available-for-sale debt securities was $87,061,000, with a fair value of $87,643,000, reflecting unrealized gains of $1,327,000 and unrealized losses of $745,000[61]. - The total depreciation in value of debt securities in an unrealized loss position represented 0.85% of the debt securities portfolio as of March 31, 2021, compared to 0.12% as of December 31, 2020[65]. - The company continues to monitor all securities with a high degree of scrutiny, indicating potential future evaluations for credit losses[67]. Shareholder Returns and Equity - Stockholders' equity slightly decreased to $425,999 thousand from $426,730 thousand, a reduction of approximately 0.2%[11]. - Common dividends declared were $0.25 per share, totaling $4,428 for the quarter[18]. - The balance of retained earnings increased to $241,889 as of March 31, 2021, up from $237,585 at the beginning of the year[18]. - The company repurchased 187,700 common shares for $4.99 million as part of a plan to buy back up to 2.4 million shares by January 2024[185].