First Community Bankshares, Inc. Announces First Quarter 2023 Results and Quarterly Cash Dividend
26 April 2023 - 6:00AM
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 March 31, 2023. The Company reported net income
of $11.78 million, or $0.72 per diluted common share, for the
quarter ended March 31, 2023.
The Company also declared a quarterly cash
dividend to common shareholders of twenty-nine cents ($0.29) per
common share, an increase of two cents $0.02, or 7.41%, over the
quarterly dividend declared in the same quarter of 2022. The
quarterly dividend is payable to common shareholders of record on
May 12, 2023, and is expected to be paid on or about May 26, 2023.
This marks the 38th consecutive year of regular dividends to common
shareholders.
On April 21, 2023, the Company completed its
acquisition of Surrey Bancorp and its subsidiary Surrey Bank and
Trust of Mount Airy, North Carolina. At closing, Surrey had
approximately $468 million in assets, $253 million in loans, and
$405 million in deposits.
First Quarter 2023 and Current
Highlights
Income
Statement
- Net income of $11.78 million for
the quarter was an approximate 24% increase, or $2.27 million,
compared to $9.52 million recorded in the same quarter of 2022. The
increase is primarily attributable to an increase in net interest
income of $4.26 million. The increase in net interest income was
offset by an increase in noninterest expense of $827 thousand and a
decrease in noninterest income of $611 thousand.
- Annualized return on average assets
was 1.55% for the first quarter of 2023 and 1.20% for the same
quarter of 2022. Annualized return on average common equity was
11.15% for the first quarter of 2023 and 8.98% for the same quarter
of 2022.
- Net interest margin for the first
quarter was 4.35%, which was an 80 basis point increase from 3.55%
reported for the same quarter of 2022. The yield on earning assets
increased 85 basis points, primarily driven by increased earnings
on loans and securities.
- The cost of interest-bearing
deposits increased 6 basis points to 0.16%, primarily driven by an
increase in the interest expense associated with savings and money
market deposit accounts.
- Interest and fees on loans
increased $2.99 million from the same quarter of 2022 and is
attributable to both an increase in yield and an increase in
average balance compared to the yield and average balance of the
prior year. Interest income from securities of $2.10 million was an
increase of $1.35 million over the first quarter of 2022 primarily
attributable to an increase in the portfolio. Interest income on
deposits in banks also increased $214 thousand to $462 thousand for
the first quarter primarily due to a significant increase in
overnight rates as compared to the first quarter of 2022.
- The net provision for credit losses
of $1.74 million for the quarter was a decrease of $219 thousand
compared to $1.96 million recorded in the same quarter of 2022.
This quarter’s provision was a function of a $1.97 million
provision for credit losses and a reduction in the allowance for
unfunded commitments of $232 thousand.
Balance Sheet and Asset
Quality
- The Company’s loan portfolio
decreased by $11.3 million, or 0.47%, from year-end 2022, with the
largest decreases in the consumer non-real estate loan type.
- The Company did not repurchase any
common shares during the first quarter of 2023. Share repurchases
had been stopped in anticipation of the now completed acquisition
of Surrey Bancorp.
- Non-performing loans to total loans
remained low at 0.65% of total loans and continues the declining
trend experienced over the past four quarters. The Company
experienced net charge-offs for the first quarter of 2023 of $1.74
million, or 0.29% of annualized average loans, compared to net
charge-offs of $838 thousand, or 0.15% of annualized average loans,
for the same period in 2022.
- The allowance for credit losses to
total loans was 1.29% at March 31, 2023.
- Book value per share at March 31,
2023, was $26.58, an increase of $0.57 from year-end 2022.
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%. 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 48 branch
banking locations in Virginia, West Virginia, North Carolina, and
Tennessee as of March 31, 2023. First Community Bank offers wealth
management and investment advice and services through its Trust
Division and through its wholly owned subsidiary, First Community
Wealth Management, which collectively managed and administered
$1.34 billion in combined assets as of March 31, 2023. The Company
reported consolidated assets of $3.05 billion as of March 31, 2023.
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; 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.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March
31, |
|
December
31, |
|
September
30, |
|
June
30, |
|
March
31, |
|
(Amounts in thousands, except share and per share data) |
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
27,628 |
|
|
$ |
27,873 |
|
|
$ |
26,405 |
|
|
$ |
25,651 |
|
|
$ |
24,641 |
|
|
|
Interest on securities |
|
2,099 |
|
|
|
1,900 |
|
|
|
1,785 |
|
|
|
1,551 |
|
|
|
750 |
|
|
|
Interest on deposits in banks |
|
462 |
|
|
|
1,215 |
|
|
|
1,532 |
|
|
|
768 |
|
|
|
248 |
|
|
Total interest income |
|
30,189 |
|
|
|
|
30,988 |
|
|
|
|
29,722 |
|
|
|
|
27,970 |
|
|
|
|
25,639 |
|
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
718 |
|
|
|
366 |
|
|
|
380 |
|
|
|
422 |
|
|
|
486 |
|
|
|
Interest on borrowings |
|
59 |
|
|
|
1 |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
Total interest expense |
|
777 |
|
|
|
|
367 |
|
|
|
|
380 |
|
|
|
|
423 |
|
|
|
|
486 |
|
|
|
Net interest income |
|
29,412 |
|
|
|
|
30,621 |
|
|
|
|
29,342 |
|
|
|
|
27,547 |
|
|
|
|
25,153 |
|
|
|
Provision for credit losses |
|
1,742 |
|
|
|
3,416 |
|
|
|
685 |
|
|
|
510 |
|
|
|
1,961 |
|
|
Net interest income after provision |
|
27,670 |
|
|
|
|
27,205 |
|
|
|
|
28,657 |
|
|
|
|
27,037 |
|
|
|
|
23,192 |
|
|
|
Noninterest income |
|
8,583 |
|
|
|
9,184 |
|
|
|
9,950 |
|
|
|
8,854 |
|
|
|
9,194 |
|
|
Noninterest expense |
|
20,813 |
|
|
|
20,730 |
|
|
|
21,145 |
|
|
|
21,255 |
|
|
|
19,986 |
|
|
Income before income taxes |
|
15,440 |
|
|
|
|
15,659 |
|
|
|
|
17,462 |
|
|
|
|
14,636 |
|
|
|
|
12,400 |
|
|
|
Income tax expense |
|
3,658 |
|
|
|
3,076 |
|
|
|
4,111 |
|
|
|
3,423 |
|
|
|
2,885 |
|
|
Net income |
$ |
11,782 |
|
|
|
$ |
12,583 |
|
|
|
$ |
13,351 |
|
|
|
$ |
11,213 |
|
|
|
$ |
9,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.73 |
|
|
$ |
0.78 |
|
|
$ |
0.82 |
|
|
$ |
0.67 |
|
|
$ |
0.57 |
|
|
|
Diluted |
|
0.72 |
|
|
|
0.77 |
|
|
|
0.81 |
|
|
|
0.67 |
|
|
|
0.56 |
|
|
Cash dividends per common share |
|
|
|
|
|
|
|
|
|
|
|
Regular |
|
0.29 |
|
|
|
0.29 |
|
|
|
0.27 |
|
|
|
0.27 |
|
|
|
0.27 |
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
16,228,297 |
|
|
|
16,229,289 |
|
|
|
16,378,022 |
|
|
|
16,662,817 |
|
|
|
16,817,284 |
|
|
|
Diluted |
|
16,289,489 |
|
|
|
16,281,922 |
|
|
|
16,413,202 |
|
|
|
16,682,615 |
|
|
|
16,864,515 |
|
|
Performance ratios |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.55 |
% |
|
|
1.59 |
% |
|
|
1.63 |
% |
|
|
1.38 |
% |
|
|
1.20 |
% |
|
|
Return on average common equity |
|
11.15 |
% |
|
|
11.99 |
% |
|
|
12.60 |
% |
|
|
10.61 |
% |
|
|
8.98 |
% |
|
|
Return on average tangible common equity(1) |
|
16.19 |
% |
|
|
17.75 |
% |
|
|
18.51 |
% |
|
|
15.56 |
% |
|
|
13.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) A non-GAAP financial measure defined as net income
divided by average stockholders' equity less average goodwill and
other intangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED QUARTERLY NONINTEREST INCOME AND EXPENSE
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March
31, |
|
December
31, |
September
30, |
June
30, |
|
March
31, |
|
(Amounts in thousands) |
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
Wealth
management |
$ |
1,017 |
|
$ |
958 |
|
$ |
932 |
|
$ |
993 |
|
$ |
972 |
|
|
Service
charges on deposits |
|
3,159 |
|
|
3,354 |
|
|
3,689 |
|
|
3,672 |
|
|
3,498 |
|
|
Other
service charges and fees |
|
3,082 |
|
|
3,006 |
|
|
2,988 |
|
|
3,297 |
|
|
3,017 |
|
|
Gain on sale
of securities |
|
7 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
Gain on
divestiture |
|
- |
|
|
- |
|
|
1,658 |
|
|
- |
|
|
- |
|
|
Other
operating income |
|
1,318 |
|
|
1,866 |
|
|
683 |
|
|
892 |
|
|
1,707 |
|
Total noninterest income |
$ |
8,583 |
|
|
$ |
9,184 |
|
|
$ |
9,950 |
|
|
$ |
8,854 |
|
|
$ |
9,194 |
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits |
$ |
11,595 |
|
$ |
11,913 |
|
$ |
12,081 |
|
$ |
11,518 |
|
$ |
11,671 |
|
|
Occupancy
expense |
|
1,168 |
|
|
1,196 |
|
|
1,188 |
|
|
1,165 |
|
|
1,269 |
|
|
Furniture
and equipment expense |
|
1,401 |
|
|
1,413 |
|
|
1,478 |
|
|
1,496 |
|
|
1,614 |
|
|
Service
fees |
|
2,019 |
|
|
1,905 |
|
|
1,635 |
|
|
2,563 |
|
|
1,503 |
|
|
Advertising
and public relations |
|
643 |
|
|
574 |
|
|
718 |
|
|
577 |
|
|
540 |
|
|
Professional
fees |
|
327 |
|
|
98 |
|
|
208 |
|
|
544 |
|
|
453 |
|
|
Amortization
of intangibles |
|
234 |
|
|
364 |
|
|
365 |
|
|
360 |
|
|
357 |
|
|
FDIC
premiums and assessments |
|
320 |
|
|
330 |
|
|
321 |
|
|
257 |
|
|
218 |
|
|
Merger
expense |
|
379 |
|
|
596 |
|
|
- |
|
|
- |
|
|
- |
|
|
Divestiture
expense |
|
- |
|
|
- |
|
|
153 |
|
|
- |
|
|
- |
|
|
Other
operating expense |
|
2,727 |
|
|
2,341 |
|
|
2,998 |
|
|
2,775 |
|
|
2,361 |
|
Total noninterest expense |
$ |
20,813 |
|
$ |
20,730 |
|
$ |
21,145 |
|
$ |
21,255 |
|
$ |
19,986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED
EARNINGS (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March
31, |
|
December
31, |
September
30, |
June
30, |
|
March
31, |
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
(Amounts in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
11,782 |
|
|
$ |
12,583 |
|
|
$ |
13,351 |
|
|
$ |
11,213 |
|
|
$ |
9,515 |
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on sale of securities |
|
(7 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
Merger expense |
|
379 |
|
|
|
596 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
Divestiture expense |
|
- |
|
|
|
- |
|
|
|
153 |
|
|
|
- |
|
|
|
- |
|
|
|
Gain on divestiture |
|
- |
|
|
|
- |
|
|
|
(1,658 |
) |
|
|
- |
|
|
|
- |
|
|
|
Other items(1) |
|
- |
|
|
|
(450 |
) |
|
|
- |
|
|
|
(92 |
) |
|
|
- |
|
|
Total adjustments |
|
372 |
|
|
|
146 |
|
|
|
(1,505 |
) |
|
|
(92 |
) |
|
|
- |
|
|
Tax effect |
|
10 |
|
- |
|
(29 |
) |
- |
|
(361 |
) |
- |
|
(22 |
) |
- |
|
- |
|
|
Adjusted earnings, non-GAAP |
$ |
12,144 |
|
|
$ |
12,758 |
|
|
$ |
12,207 |
|
|
$ |
11,143 |
|
|
$ |
9,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings per common share, |
|
|
|
|
|
|
|
|
|
|
|
non-GAAP |
$ |
0.75 |
|
|
$ |
0.78 |
|
|
$ |
0.74 |
|
|
$ |
0.67 |
|
|
$ |
0.56 |
|
|
Performance ratios, non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
Adjusted return on average assets |
|
1.60 |
% |
|
|
1.61 |
% |
|
|
1.49 |
% |
|
|
1.37 |
% |
|
|
1.20 |
% |
|
|
Adjusted return on average common equity |
|
11.49 |
% |
|
|
12.16 |
% |
|
|
11.52 |
% |
|
|
10.55 |
% |
|
|
8.98 |
% |
|
|
Adjusted return on average tangible |
|
|
|
|
|
|
|
|
|
|
|
|
common
equity(2) |
|
16.69 |
% |
|
|
17.93 |
% |
|
|
16.92 |
% |
|
|
15.46 |
% |
|
|
13.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes other non-recurring income and expense items |
(2) A non-GAAP financial measure defined as adjusted earnings
divided by average stockholders' equity less average goodwill and
other intangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
Average |
|
|
Average
Yield/ |
|
Average |
|
|
Average
Yield/ |
(Amounts in thousands) |
Balance |
Interest(1) |
|
Rate(1) |
|
Balance |
Interest(1) |
|
Rate(1) |
|
Assets |
|
|
|
|
|
|
|
|
|
|
Earning assets |
|
|
|
|
|
|
|
|
|
|
|
Loans(2)(3) |
$ |
2,393,759 |
$ |
27,698 |
|
4.69 |
% |
|
$ |
2,200,003 |
$ |
24,698 |
|
4.55 |
% |
|
|
Securities available for sale |
|
316,734 |
|
2,140 |
|
2.74 |
% |
|
|
140,975 |
|
800 |
|
2.30 |
% |
|
|
Interest-bearing deposits |
|
40,993 |
|
465 |
|
4.60 |
% |
|
|
544,718 |
|
249 |
|
0.19 |
% |
|
Total earning assets |
|
2,751,486 |
|
30,303 |
|
4.47 |
% |
|
|
2,885,696 |
|
25,747 |
|
3.62 |
% |
|
Other assets |
|
322,789 |
|
|
|
|
|
328,212 |
|
|
|
|
Total assets |
$ |
3,074,275 |
|
|
|
|
$ |
3,213,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
$ |
666,447 |
$ |
26 |
|
0.02 |
% |
|
$ |
679,211 |
$ |
28 |
|
0.02 |
% |
|
|
Savings deposits |
|
827,414 |
|
484 |
|
0.24 |
% |
|
|
881,295 |
|
66 |
|
0.03 |
% |
|
|
Time deposits |
|
271,214 |
|
208 |
|
0.31 |
% |
|
|
346,902 |
|
392 |
|
0.46 |
% |
|
Total interest-bearing deposits |
|
1,765,075 |
|
718 |
|
0.16 |
% |
|
|
1,907,408 |
|
486 |
|
0.10 |
% |
|
Borrowings |
|
|
|
|
|
|
|
|
|
|
|
Federal funds purchased |
|
4,719 |
|
58 |
|
5.07 |
% |
|
|
- |
|
- |
|
- |
|
|
|
Retail repurchase agreements |
|
2,086 |
|
1 |
|
0.06 |
% |
|
|
1,993 |
|
- |
|
N/M |
|
Total borrowings |
|
6,805 |
|
59 |
|
0.07 |
% |
|
|
1,993 |
|
- |
|
N/M |
|
Total interest-bearing liabilities |
|
1,771,880 |
|
777 |
|
0.18 |
% |
|
|
1,909,401 |
|
486 |
|
0.10 |
% |
|
Noninterest-bearing demand deposits |
|
838,041 |
|
|
|
|
|
835,921 |
|
|
|
|
Other liabilities |
|
35,669 |
|
|
|
|
|
38,956 |
|
|
|
|
Total liabilities |
|
2,645,590 |
|
|
|
|
|
2,784,278 |
|
|
|
|
Stockholders' equity |
|
428,685 |
|
|
|
|
|
429,630 |
|
|
|
|
Total liabilities and stockholders' equity |
$ |
3,074,275 |
|
|
|
|
$ |
3,213,908 |
|
|
|
|
Net interest income, FTE(1) |
|
$ |
29,526 |
|
|
|
|
$ |
25,261 |
|
|
|
Net interest rate spread |
|
|
|
4.29 |
% |
|
|
|
|
3.52 |
% |
|
Net interest margin, FTE(1) |
|
|
|
4.35 |
% |
|
|
|
|
3.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Interest income and average yield/rate are presented on a FTE,
non-GAAP, basis using the federal statutory income tax rate of
21%. |
|
(2)
Nonaccrual loans are included in the average balance; however, no
related interest income is recorded during the period of
nonaccrual. |
|
(3)
Interest on loans includes non-cash and accelerated purchase
accounting accretion of $193 thousand and $866 thousand for the
three months ended March 31, 2023 and 2022, respectively. |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31, |
|
December
31, |
September
30, |
|
June
30, |
|
March
31, |
|
(Amounts in thousands, except per share data) |
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
92,385 |
|
|
$ |
170,846 |
|
|
$ |
229,095 |
|
|
$ |
398,242 |
|
|
$ |
457,306 |
|
|
Debt securities available for sale |
|
308,269 |
|
|
|
300,349 |
|
|
|
299,620 |
|
|
|
287,767 |
|
|
|
268,703 |
|
|
Loans held for investment, net of unearned income |
|
2,388,897 |
|
|
|
2,400,197 |
|
|
|
2,362,733 |
|
|
|
2,299,798 |
|
|
|
2,244,296 |
|
|
|
Allowance for credit losses |
|
(30,789 |
) |
|
|
(30,556 |
) |
|
|
(29,388 |
) |
|
|
(29,749 |
) |
|
|
(28,981 |
) |
|
Loans held for investment, net |
|
2,358,108 |
|
|
|
2,369,641 |
|
|
|
2,333,345 |
|
|
|
2,270,049 |
|
|
|
2,215,315 |
|
|
Premises and equipment, net |
|
47,407 |
|
|
|
47,340 |
|
|
|
47,891 |
|
|
|
49,752 |
|
|
|
50,912 |
|
|
Other real estate owned |
|
481 |
|
|
|
703 |
|
|
|
559 |
|
|
|
579 |
|
|
|
848 |
|
|
Interest receivable |
|
8,646 |
|
|
|
9,279 |
|
|
|
8,345 |
|
|
|
8,433 |
|
|
|
8,100 |
|
|
Goodwill |
|
129,565 |
|
|
|
129,565 |
|
|
|
129,565 |
|
|
|
129,565 |
|
|
|
129,565 |
|
|
Other intangible assets |
|
3,942 |
|
|
|
4,176 |
|
|
|
4,541 |
|
|
|
4,905 |
|
|
|
5,266 |
|
|
Other assets |
|
102,869 |
|
|
|
103,673 |
|
|
|
107,838 |
|
|
|
109,085 |
|
|
|
108,112 |
|
|
Total assets |
$ |
3,051,672 |
|
|
$ |
3,135,572 |
|
|
$ |
3,160,799 |
|
|
$ |
3,258,377 |
|
|
$ |
3,244,127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
823,297 |
|
|
$ |
872,168 |
|
|
$ |
878,423 |
|
|
$ |
877,962 |
|
|
$ |
860,652 |
|
|
|
Interest-bearing |
|
1,761,327 |
|
|
|
1,806,647 |
|
|
|
1,831,798 |
|
|
|
1,920,577 |
|
|
|
1,922,292 |
|
|
Total deposits |
|
2,584,624 |
|
|
|
2,678,815 |
|
|
|
2,710,221 |
|
|
|
2,798,539 |
|
|
|
2,782,944 |
|
|
Securities sold under agreements to repurchase |
|
1,866 |
|
|
|
1,874 |
|
|
|
1,958 |
|
|
|
2,635 |
|
|
|
2,488 |
|
|
Interest, taxes, and other liabilities |
|
33,451 |
|
|
|
32,898 |
|
|
|
36,362 |
|
|
|
39,157 |
|
|
|
34,539 |
|
|
Total liabilities |
|
2,619,941 |
|
|
|
2,713,587 |
|
|
|
2,748,541 |
|
|
|
2,840,331 |
|
|
|
2,819,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
|
|
|
|
Common stock |
|
16,243 |
|
|
|
16,225 |
|
|
|
16,273 |
|
|
|
16,502 |
|
|
|
16,782 |
|
|
Additional paid-in capital |
|
128,666 |
|
|
|
128,508 |
|
|
|
129,914 |
|
|
|
136,705 |
|
|
|
144,088 |
|
|
Retained earnings |
|
300,047 |
|
|
|
292,971 |
|
|
|
285,096 |
|
|
|
276,499 |
|
|
|
269,798 |
|
|
Accumulated other comprehensive loss |
|
(13,225 |
) |
|
|
(15,719 |
) |
|
|
(19,025 |
) |
|
|
(11,660 |
) |
|
|
(6,512 |
) |
|
Total stockholders' equity |
|
431,731 |
|
|
|
421,985 |
|
|
|
412,258 |
|
|
|
418,046 |
|
|
|
424,156 |
|
|
Total liabilities and stockholders' equity |
$ |
3,051,672 |
|
|
$ |
3,135,572 |
|
|
$ |
3,160,799 |
|
|
$ |
3,258,377 |
|
|
$ |
3,244,127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at period-end |
|
16,243,551 |
|
|
|
16,225,399 |
|
|
|
16,273,177 |
|
|
|
16,502,144 |
|
|
|
16,781,975 |
|
|
Book value per common share |
$ |
26.58 |
|
|
$ |
26.01 |
|
|
$ |
25.33 |
|
|
$ |
25.33 |
|
|
$ |
25.27 |
|
|
Tangible book value per common share(1) |
|
18.36 |
|
|
|
17.76 |
|
|
|
17.09 |
|
|
|
17.18 |
|
|
|
17.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
A non-GAAP financial measure defined as stockholders' equity less
goodwill and other intangible assets, divided by shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
CREDIT QUALITY INFORMATION (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31, |
|
December
31, |
September
30, |
June
30, |
|
March
31, |
|
(Amounts in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
Allowance for Credit Losses |
|
|
|
|
|
|
|
|
|
|
Balance at beginning of year: |
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses - loans |
$ |
30,556 |
|
|
$ |
29,388 |
|
|
$ |
29,749 |
|
|
$ |
28,981 |
|
|
$ |
27,858 |
|
|
Allowance for credit losses - loan commitments (1) |
|
1,196 |
|
|
|
1,416 |
|
|
|
956 |
|
|
|
775 |
|
|
|
678 |
|
|
Total allowance for credit losses beginning of year |
|
31,752 |
|
|
|
30,804 |
|
|
|
30,705 |
|
|
|
29,756 |
|
|
|
28,536 |
|
|
Provision for credit losses: |
|
|
|
|
|
|
|
|
|
|
Provision for credit losses - loans |
|
1,974 |
|
|
|
3,416 |
|
|
|
685 |
|
|
|
510 |
|
|
|
1,961 |
|
|
(Recovery of) provision for credit losses - loan commitments
(1) |
|
|
(232 |
) |
|
|
(220 |
) |
|
|
460 |
|
|
|
181 |
|
|
|
97 |
|
|
Total
provision for credit losses - loans and loan commitments |
|
|
1,742 |
|
|
|
3,196 |
|
|
|
1,145 |
|
|
|
691 |
|
|
|
2,058 |
|
|
Charge-offs |
|
(2,570 |
) |
|
|
(2,873 |
) |
|
|
(2,158 |
) |
|
|
(1,469 |
) |
|
|
(1,302 |
) |
|
Recoveries |
|
829 |
|
|
|
625 |
|
|
|
1,112 |
|
|
|
1,727 |
|
|
|
464 |
|
|
Net (charge-offs) recoveries |
|
(1,741 |
) |
|
|
(2,248 |
) |
|
|
(1,046 |
) |
|
|
258 |
|
|
|
(838 |
) |
|
Balance at end of period: |
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses - loans |
|
30,789 |
|
|
|
30,556 |
|
|
|
29,388 |
|
|
|
29,749 |
|
|
|
28,981 |
|
|
Allowance for credit losses - loan commitments (1) |
|
964 |
|
|
|
1,196 |
|
|
|
1,416 |
|
|
|
956 |
|
|
|
775 |
|
|
Ending balance |
$ |
31,753 |
|
|
$ |
30,556 |
|
|
$ |
29,388 |
|
|
$ |
29,749 |
|
|
$ |
28,981 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets |
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
15,557 |
|
|
$ |
15,208 |
|
|
$ |
15,303 |
|
|
$ |
17,826 |
|
|
$ |
20,487 |
|
|
Accruing loans past due 90 days or more |
|
23 |
|
|
|
142 |
|
|
|
131 |
|
|
|
131 |
|
|
|
- |
|
|
Modified loans past due 90 days or more (2) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Troubled debt restructurings ("TDRs") (3) |
|
- |
|
|
|
1,346 |
|
|
|
1,331 |
|
|
|
515 |
|
|
|
1,141 |
|
|
Total nonperforming loans |
|
15,580 |
|
|
|
16,696 |
|
|
|
16,765 |
|
|
|
18,472 |
|
|
|
21,628 |
|
|
OREO |
|
481 |
|
|
|
703 |
|
|
|
559 |
|
|
|
579 |
|
|
|
848 |
|
|
Total nonperforming assets |
$ |
16,061 |
|
|
$ |
17,399 |
|
|
$ |
17,324 |
|
|
$ |
19,051 |
|
|
$ |
22,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Information |
|
|
|
|
|
|
|
|
|
|
Total modified loans (2) |
$ |
429 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
Total accruing TDRs (4) |
$ |
- |
|
|
$ |
7,112 |
|
|
$ |
7,028 |
|
|
$ |
8,313 |
|
|
$ |
8,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to total loans |
|
0.65 |
% |
|
|
0.70 |
% |
|
|
0.71 |
% |
|
|
0.80 |
% |
|
|
0.96 |
% |
|
Nonperforming assets to total assets |
|
0.53 |
% |
|
|
0.55 |
% |
|
|
0.55 |
% |
|
|
0.58 |
% |
|
|
0.69 |
% |
|
Allowance for credit losses to nonperforming loans |
|
197.62 |
% |
|
|
183.01 |
% |
|
|
175.29 |
% |
|
|
161.05 |
% |
|
|
134.00 |
% |
|
Allowance for credit losses to total loans |
|
1.29 |
% |
|
|
1.27 |
% |
|
|
1.24 |
% |
|
|
1.29 |
% |
|
|
1.29 |
% |
|
Annualized net charge-offs (recoveries) to average loans |
|
0.29 |
% |
|
|
0.37 |
% |
|
|
0.18 |
% |
|
|
-0.05 |
% |
|
|
0.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Prior quarter information for loan commitments has been
reclassed for presentation purposes. |
|
(2) ASU 2022-02, Financial Instruments-Credit Losses (Topic
326), Troubled Debt Restructurings and Vintage Disclosures. ASU
adopted effective January 1, 2023. |
|
(3) Accruing TDRs restructured within the past six months or
nonperforming as reported prior to the adoption of ASU 2022-02
Financial Instruments-Credit Losses (Topic 326), Troubled Debt
Restructurings and Vintage Disclosures. |
|
(4) Accruing total TDRs as reported prior to the adoption of
ASU 2022-02 Financial Instruments-Credit Losses (Topic 326),
Troubled Debt Restructurings and Vintage Disclosures. |
|
FOR MORE INFORMATION, CONTACT:David D.
Brown(276) 326-9000
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