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First Community Bankshares, Inc. Announces Second Quarter 2024 Results and Quarterly Cash Dividend

BLUEFIELD, Va., July 23, 2024 (GLOBE NEWSWIRE) -- First Community Bankshares, Inc. (NASDAQ: FCBC) (www.firstcommunitybank.com) (the 鈥淐ompany鈥�) today reported its unaudited results of operations and other financial information for the quarter ended June 30, 2024. The Company reported net income of听$12.69听尘颈濒濒颈辞苍, or $0.71听per diluted common share, for the quarter ended June 30, 2024. Net income for the six months ended June 30, 2024, was $25.53听尘颈濒濒颈辞苍 or $1.42听per diluted common share.

The Company also听declared a quarterly cash dividend to common shareholders of thirty-one听cents, $0.31听per common share.听The quarterly dividend is payable to common shareholders of record on August 9, 2024, and is expected to be paid on or about August 23, 2024. This marks the 39th听consecutive year of regular dividends to common shareholders.

Second听Quarter 2024听Highlights

Income Statement

• Net income of $12.69听尘颈濒濒颈辞苍 for the second听quarter of听2024, was an increase of $2.87听尘颈濒濒颈辞苍, or 29.26%, from the same听quarter of听2023. Net income of $25.53听尘颈濒濒颈辞苍 for the first six months of 2024, was an increase of $3.94 million, or 18.22%, from听the same period of 2023.
• The provision for credit losses decreased $3.96 million, or 96.49%, from the same quarter of听2023. The second quarter of 2023 included $1.61 million of Day 2 provision associated with the Surrey Bancorp acquisition. The majority of the difference is due to a much smaller required credit loss provision as the loan portfolio has experienced a decline of $147.81 million from the same period of听2023. In addition, there was a recovery of provision for the allowance for unfunded commitments of $305 thousand for the current quarter; there was no provision for the same period of听2023.
• Net interest income decreased $950 thousand compared to the same quarter in 2023, primarily due to increases in rates paid on interest-bearing deposits.
• Net interest margin of 4.51% was an increase of 3 basis points over the same quarter of听2023. The yield on earning assets increased 45 basis points from the same period of 2023 and is attributable to an increase in interest income resulting from an increase in yield and an increase in average balance. There was an increase in yield for both loans and securities available for sale. The average balance for interest-bearing deposits with banks increased $147.11 million over the same period of 2023. The yield on interest-bearing liabilities increased 67 basis points when compared with the same period of听2023听补苍诲 is primarily attributable to increased rates on interest-bearing deposit liabilities.
• Noninterest income increased approximately $557 thousand, or 6.34%, when compared to the same quarter of 2023. Noninterest expense increased $226 thousand, or 0.92%. Noninterest expense for the quarter ending June 30, 2024, included a non-recurring charge of $1.80 million to settle a putative class action lawsuit. Noninterest expense for the same period of 2023听included non-recurring expense of $2.01 million in merger charges related to the Surrey Bancorp acquisition.
• Annualized return on average assets ("ROA") was 1.58%听for the second听quarter and听1.59%听for the first six months of听2024听compared to听1.18%听补苍诲 1.36%听for the same periods, respectively, of 2023. Annualized return on average common equity ("ROE") was 10.02%听for the听second听quarter and听10.10% for the first six months of 2024听compared to 8.04%听补苍诲 9.48% for the same periods, respectively, of 2023.

Balance Sheet and Asset Quality

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• Consolidated assets totaled $3.23听billion at June 30, 2024.
• Securities available for sale decreased $151.28 million, or 53.84%, from December 31, 2023. The decrease is primarily attributable to the maturity of $141.50 million in U.S. Treasury Notes during the first six months of 2024. Loans decreased $99.03 million, or 3.85%. Deposits decreased $45.05 million, or 1.65%. The net effect of these balance sheet changes resulted in an increase in cash and cash equivalents of $213.46 million, or 183.35%.
• The Company repurchased 155,044 common shares during the second听quarter of 2024听at听a total cost of $5.28听million. The Company repurchased 244,440 common shares during the first six months of 2024听at听a total cost of $8.25 million.
• Non-performing loans to total loans increased听to听0.80%听when compared with the same听quarter of 2023. The Company experienced net charge-offs for the听second听quarter of 2024听of $1.03听million, or 0.16%听of annualized average loans, compared to net charge-offs of $728 thousand, or 0.11%, of annualized average loans for the same period in听2023.
• The allowance for credit losses to total loans was 1.41%听at June 30, 2024, compared to 1.41%听at December 31, 2023, and听1.38% for June 30, 2023.
• Book value per share at June 30, 2024, was $ 27.85, an increase of $0.65听from year-end 2023.

Non-GAAP Financial Measures

In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (鈥淕AAP鈥�), 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 鈥渢angible book value per common share,鈥� 鈥渞eturn on average tangible common equity,鈥� 鈥渁djusted earnings,鈥� 鈥渁djusted diluted earnings per share,鈥� 鈥渁djusted return on average assets,鈥� 鈥渁djusted return on average common equity,鈥� 鈥渁djusted return on average tangible common equity,鈥� and certain financial measures presented on a fully taxable equivalent (鈥淔TE鈥�) 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听53 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of June 30, 2024. 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 $1.58听billion听in combined assets as of June 30, 2024. The Company reported consolidated assets of $3.23听billion听as of June 30, 2024. The Company鈥檚 common stock is listed on the NASDAQ Global Select Market under the trading symbol, 鈥淔CBC鈥�. Additional investor information is available on the Company鈥檚 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鈥�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.

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FOR MORE INFORMATION, CONTACT:听
David D. Brown
(276) 326-9000