First Community Bankshares, Inc. Reports Fourth Quarter 2024 Financial Results and Declares Special Dividend

First Community Bankshares reports Q4 2024 net income of $13.04 million, declares $0.31 quarterly dividend, and $2.07 special dividend.

Quiver AI Summary

First Community Bankshares, Inc. reported its financial results for the fourth quarter and year ending December 31, 2024, showing a net income of $13.04 million, or $0.71 per diluted share, marking a 10.65% increase from the same quarter in 2023. For the year, the net income was $51.60 million, reflecting a 7.46% increase compared to the previous year. The Company declared a quarterly cash dividend of $0.31 per share and a special cash dividend of $2.07 per share, both payable on February 28, 2025. This marks the 40th consecutive year of regular dividends. The report indicates challenges, including a decrease in net interest income, primarily due to increased interest rates on deposits, but overall capital management appears strong, with plans to return excess earnings to shareholders through dividends and stock repurchases. The Company also noted improvements in return on assets and equity, despite a slight increase in non-performing loans. The total assets of the Company were reported at $3.26 billion.

Potential Positives

• Reported a net income of $13.04 million for Q4 2024, reflecting a 10.65% increase compared to Q4 2023.
• Declared a quarterly cash dividend of $0.31 per share and a special cash dividend of $2.07 per share, marking 40 consecutive years of regular dividends.
• Increased book value per share to $28.73, up from $27.20 at year-end 2023.
• Demonstrated solid capital management with sufficient surplus capital to support anticipated growth opportunities after the special dividend payment.

Potential Negatives

• Net interest income decreased by $730 thousand compared to the same quarter in 2023, indicating potential challenges in maintaining profitability.
• Loans decreased by $156.21 million, or 6.07%, from December 31, 2023, which could suggest weakening demand or issues in loan origination.
• Non-performing loans to total loans increased to 0.83% compared to the same quarter of 2023, signaling a potential deterioration in loan quality.

FAQ

What were First Community Bankshares' earnings for Q4 2024?

The bank reported a net income of $13.04 million for the fourth quarter of 2024.

How much is the cash dividend declared for shareholders?

The company declared a quarterly cash dividend of $0.31 per common share.

What is the significance of the special cash dividend?

The Board declared a special cash dividend of $2.07 per common share, reflecting strong capital management.

How did net interest income change compared to Q4 2023?

Net interest income decreased by $730 thousand compared to the same quarter in 2023.

What was the company’s capital management philosophy?

The philosophy emphasizes maintaining a strong capital base and returning earnings to shareholders through dividends and repurchases.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$FCBC Insider Trading Activity

$FCBC insiders have traded $FCBC stock on the open market 4 times in the past 6 months. Of those trades, 0 have been purchases and 4 have been sales.

Here’s a breakdown of recent trading of $FCBC stock by insiders over the last 6 months:

• JASON R BELCHER (SVP-Chief Admin Officer) sold 6,384 shares for an estimated $296,792
• DAVID D BROWN (Chief Financial Officer) has made 0 purchases and 3 sales selling 4,350 shares for an estimated $208,027.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$FCBC Hedge Fund Activity

We have seen 48 institutional investors add shares of $FCBC stock to their portfolio, and 39 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• CALLAN FAMILY OFFICE, LLC removed 394,215 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $17,010,377
• VANGUARD GROUP INC added 56,270 shares (+6.3%) to their portfolio in Q3 2024, for an estimated $2,428,050
• BLACKROCK, INC. added 45,410 shares (+3.0%) to their portfolio in Q3 2024, for an estimated $1,959,441
• GOLDMAN SACHS GROUP INC added 32,909 shares (+125.8%) to their portfolio in Q3 2024, for an estimated $1,420,023
• MORGAN STANLEY added 27,476 shares (+21.8%) to their portfolio in Q3 2024, for an estimated $1,185,589
• SIENA CAPITAL PARTNERS GP, LLC removed 25,765 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $1,111,759
• BRIDGEWAY CAPITAL MANAGEMENT, LLC removed 20,854 shares (-74.5%) from their portfolio in Q3 2024, for an estimated $899,850

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

BLUEFIELD, Va., Jan. 28, 2025 (GLOBE NEWSWIRE) -- First Community Bankshares, Inc. (NASDAQ: FCBC) (


www.firstcommunitybank.com


) (the “Company”) today reported its unaudited results of operations and other financial information for the quarter ended December 31, 2024. The Company reported net income of $13.04 million, or $0.71 per diluted common share, for the quarter ended December 31, 2024.  Net income for the twelve months ended December 31, 2024, was $51.60 million or $2.80 per diluted common share.

The Company also declared a quarterly cash dividend to common shareholders of thirty-one cents, $0.31 per common share. The quarterly dividend is payable to common shareholders of record on February 14, 2025, and is expected to be paid on  February 28, 2025. This marks the 40th consecutive year of regular dividends to common shareholders.

Additionally, the Board of Directors declared a special cash dividend to common shareholders of $2.07 per common share.

The Company’s capital management plan and philosophy require the maintenance of a strong capital base from which to grow and serve its customers. As part of the capital plan, the Company intends to return current earnings not needed to fund growth in core operations or other uses back to shareholders through regular cash dividends and stock repurchases. To the extent current earnings exceed those capital uses, the Company may declare special dividends from time to time. The Company earned approximately $197.45 million in the last four years, from which it paid regular dividends of $79.68 million, and repurchased shares for $81.95 million.  Since July 1, 2013, the Company earned approximately $415.90 million, from which it paid regular dividends of $174.84 million, special dividends of $8.12 million, and repurchased 9.33 million shares for $232.08 million

The Board of Directors determined that the Company will have sufficient surplus capital to support anticipated growth opportunities and other needs after payment of the special dividend totaling approximately $37.92 million. This special cash dividend is also payable on February 28, 2025, to shareholders of record February 14, 2025, and may not be indicative of special cash dividend activity in the future.

Fourth Quarter 2024 Highlights

Income Statement

• 
  Net income of $13.04 million for the fourth quarter of 2024, was a increase of $1.26 million, or 10.65%, from the same quarter of 2023.  Net income of $51.60 million for the year, was an increase of $3.58 million, or 7.46%, from the same period of 2023.
  


• 
  Net interest income decreased $730 thousand compared to the same quarter in 2023, primarily due to increases in rates paid on interest-bearing deposits.
  


• 
  Net interest margin of 4.36% was a decrease of 6 basis points over the same quarter of 2023.  The yield on earning assets increased 11 basis points from the same period of 2023 and is primarily attributable to an increase in interest income of $422 thousand.  Interest income on interest-bearing deposits with banks increased $2.91 million and was primarily due to the increase in the average balance of $246.39 million offset by a decrease in yield of 75 basis points.  This increase in interest income was offset by decreases in interest income for loans and securities available-for-sale of $2.04 million and $450 thousand, respectively.  The decreases were primarily due to decreases in the average balance for loans and securities available-for-sale of $159.86 million and $107.16 million offset by increases in yield of 2 basis points and 72 basis points, respectively.  Interest expense on interest-bearing liabilities increased $1.16 million and is primarily attributable to yield.  The yield on interest-bearing liabilities increased 26 basis points when compared with the same period of 2023 and is primarily attributable to increased rates on interest-bearing deposit liabilities.
  


• 
  Noninterest income decreased approximately $125 thousand, or 1.19%, when compared to the same quarter of 2023.  Noninterest expense decreased $2.67 million, or 9.98% when compared to the same period of 2023.  The decrease is primarily attributable to litigation expense of $3.00 million recorded in the fourth quarter of 2023.
  


• 
  Annualized return on average assets ("ROA") was 1.60% for both the fourth quarter and for the twelve months of 2024 compared to 1.43% and 1.48% for the same periods, respectively, of 2023. Annualized return on average common equity ("ROE") was 9.89% for the fourth quarter of 2024 and 10.03% for the year compared to 9.39% and 10.02% for the same periods, respectively, of 2023.  Annualized return on average tangible common equity ("ROTCE") was 14.12% for the fourth quarter of 2024 and 14.48% for the year compared to 13.82% and 14.65% for the same periods, respectively, of 2023.
  

Balance Sheet and Asset Quality

• 
  Consolidated assets totaled $3.26 billion at December 31, 2024.
  


• 
  Loans decreased $156.21 million, or 6.07%, from December 31, 2023.  Securities available for sale decreased $111.12 million, or 39.55%, from December 31, 2023.  Deposits decreased $31.08 million, or 1.14%.  The net effect of these balance sheet changes resulted in an increase in cash and cash equivalents of $261.03 million, or 224.22%.
  


• 
  The Company did not repurchase any common shares during the fourth quarter of 2024.  The Company repurchased 257,294 common shares during 2024 at a total cost of $8.72 million.
  


• 
  Non-performing loans to total loans increased to 0.83% when compared with the same quarter of 2023.  The Company experienced net charge-offs for the fourth quarter of 2024 of $1.48 million, or 0.24% of annualized average loans, compared to net charge-offs of $883 thousand, or 0.14%, of annualized average loans for the same period in 2023.
  


• 
  The allowance for credit losses to total loans was 1.44% at December 31, 2024, compared to 1.41% at December 31, 2023.
  


• 
  Book value per share at December 31, 2024, was $ 28.73, an increase of $1.53 from year-end 2023.
  

Non-GAAP Financial Measures

In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this news release include “tangible book value per common share,” “return on average tangible common equity,” “adjusted earnings,” “adjusted diluted earnings per share,” “adjusted return on average assets,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” and certain financial measures presented on a fully taxable equivalent (“FTE”) basis. FTE basis is calculated using the federal statutory income tax rate of 21%.  Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to that comparable GAAP financial measure can be found in the attached tables to this press release.  While the Company believes certain non-GAAP financial measures enhance the understanding of its business and performance, they are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions.

About First Community Bankshares, Inc.

First Community Bankshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 53 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of December 31, 2024. First Community Bank offers wealth management andinvestment adviceand services through its Trust Division and through its wholly owned subsidiary, First Community Wealth Management, which collectively managed and administered $1.62 billion in combined assets as of December 31, 2024. The Company reported consolidated assets of $3.26 billion as of December 31, 2024. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. Additional investor information is available on the Company’s website at www.firstcommunitybank.com.

This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; changes in banking laws and regulations; the degree of competition by traditional and non-traditional competitors; the impact of natural disasters, extreme weather events, military conflict , terrorism or other geopolitical events; and other risks detailed from time to time in the Company

’

s Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

_____________