First Community Bankshares (FCBC) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $13.03M ($0.71 per diluted share), down 10.98% year-over-year; nine-month net income rose 6.42% to $38.56M ($2.09 per share).

• Quarterly cash dividend of $0.31 per share declared, marking 39 consecutive years of regular dividends.

• Net interest income declined $1.75M in Q3 due to higher deposit costs; noninterest income rose 8.63% mainly from property sales.

• Company provided payment relief to customers affected by Hurricane Helene in several states.

• Book value per share increased $1.27 since year-end to $28.47.

Financial highlights

• Net interest margin for Q3 was 4.41%, down 10 bps year-over-year; yield on earning assets increased 26 bps.

• Noninterest expense rose 5.52% in Q3, driven by higher salaries, fraud losses, and litigation expense.

• Allowance for credit losses to total loans was 1.44% at quarter-end, up from 1.41% at year-end.

• Nonperforming loans to total loans increased to 0.82%; net charge-offs for Q3 were $1.13M, or 0.18% of annualized average loans.

• Total assets at September 30, 2024, were $3.22B.

Outlook and guidance

• Management does not expect losses from Hurricane Helene to materially impact financial condition or results.

• Company continues to monitor asset quality, especially in regions impacted by Hurricane Helene.

• No material changes to risk factors or capital adequacy; company remains well-capitalized.

• Forward-looking statements note risks from market conditions, credit and interest rate risk, competition, and natural disasters.