First Community Bankshares, Inc. Announces Fourth Quarter and Full Year 2024 Results, Quarterly Cash Dividend, and Special Dividend

Core Viewpoint - First Community Bankshares, Inc. reported a net income of $13.04 million for Q4 2024, marking a 10.65% increase from the same quarter in 2023, and a total net income of $51.60 million for the year, up 7.46% from 2023 [1][6]. Financial Performance - The company declared a quarterly cash dividend of $0.31 per common share and a special cash dividend of $2.07 per common share, marking the 40th consecutive year of regular dividends [2][3]. - Net interest income decreased by $730 thousand compared to Q4 2023, primarily due to increased rates on interest-bearing deposits [6]. - Noninterest income decreased by approximately $125 thousand, or 1.19%, compared to the same quarter in 2023 [6]. - Noninterest expense decreased by $2.67 million, or 9.98%, compared to the same period in 2023, largely due to a litigation expense recorded in Q4 2023 [6]. Capital Management - The company has maintained a strong capital base, returning earnings not needed for growth through regular cash dividends and stock repurchases [3]. - Over the last four years, the company earned approximately $197.45 million, paying regular dividends of $79.68 million and repurchasing shares for $81.95 million [3]. - The Board of Directors confirmed sufficient surplus capital to support anticipated growth opportunities after the special dividend payment of approximately $37.92 million [3]. Asset Quality - Consolidated assets totaled $3.26 billion as of December 31, 2024, with loans decreasing by $156.21 million, or 6.07%, from December 31, 2023 [6][12]. - Non-performing loans to total loans increased to 0.83% compared to the same quarter in 2023, with net charge-offs for Q4 2024 at $1.48 million, or 0.24% of annualized average loans [6]. - The allowance for credit losses to total loans was 1.44% at December 31, 2024, compared to 1.41% at December 31, 2023 [12]. Stock Performance - The book value per share at December 31, 2024, was $28.73, an increase of $1.53 from year-end 2023 [12][23]. - The company did not repurchase any common shares during Q4 2024 but repurchased 257,294 common shares during 2024 at a total cost of $8.72 million [6].