BLUEFIELD, Va. - First Community (NASDAQ:FCCO) Bankshares, Inc. (NASDAQ:FCBC) announced its unaudited financial results for the first quarter ended March 31, 2024. The company reported a net income of $12.85 million, or $0.71 per diluted common share, a 9.02% increase from the $11.78 million reported in the first quarter of the previous year. This growth is attributed to a rise in net interest income and a decrease in the provision for credit losses.
The bank also declared a quarterly cash dividend of $0.29 per common share, maintaining its 39-year streak of regular dividends. The dividend is payable to shareholders on record as of May 10, 2024, with an expected payment date on or about May 24, 2024.
First Community Bankshares experienced a net interest margin increase to 4.47%, up from 4.35% in the same quarter of 2023. The yield on earning assets rose by 62 basis points, driven largely by increased earnings on loans, which grew by $5.79 million from the first quarter of 2023. This rise is credited to both an increase in yield and an average balance of loans, bolstered by the acquisition of Surrey Bancorp on April 21, 2023, which added approximately $239.08 million in loans to the company's portfolio.
Noninterest income saw an increase of $676 thousand, or 7.88%, compared to the first quarter of 2023, primarily due to increased interchange income. Conversely, noninterest expenses rose by $2.57 million or 12.36%, mainly due to increased salaries, employee benefits, service fees, and other operating expenses associated with the addition of Surrey branches and staff.
The company's balance sheet showed a decrease in securities available for sale by $114.71 million, or 40.83%, from December 31, 2023, mainly due to the maturity of U.S. Treasury Notes. Loans and deposits also saw a reduction, while cash and cash equivalents increased significantly due to a rise in federal funds sold.
Asset quality metrics indicated a slight increase in non-performing loans to total loans, with the allowance for credit losses to total loans remaining unchanged at 1.41% from the end of the previous quarter.
First Community Bankshares, Inc., headquartered in Bluefield, Virginia, operates 53 branch locations across Virginia, West Virginia, North Carolina, and Tennessee. Its subsidiary, First Community Bank, offers a range of banking products and services, including wealth management and investment advice through its Trust Division and First Community Wealth Management.
This financial update is based on a press release statement from First Community Bankshares, Inc.
InvestingPro Insights
First Community Bankshares, Inc. (NASDAQ:FCBC) has shown resilience and growth through its latest financial results, with a notable increase in net income and a consistent dividend payout to shareholders. As investors consider the bank's performance and outlook, key metrics and insights from InvestingPro provide a deeper understanding of the company's financial health and potential.
InvestingPro Data reveals that First Community Bankshares has a market capitalization of $610.08 million, underscoring its solid presence in the financial sector. The company's Price-to-Earnings (P/E) ratio stands at a reasonable 12.35, with an adjusted P/E ratio for the last twelve months as of Q4 2023 at 11.68. These figures suggest a valuation that may be attractive to investors seeking stable earnings at a fair price. Additionally, the company's revenue growth of 9.69% in the last twelve months indicates a positive trajectory in its financial performance.
Among the InvestingPro Tips, it's worth noting that First Community Bankshares has raised its dividend for 4 consecutive years and has maintained dividend payments for 31 consecutive years, exemplifying a strong commitment to returning value to shareholders. Moreover, analysts predict the company will be profitable this year, which is supported by the fact that it has been profitable over the last twelve months. These insights reflect the company's financial stability and potential for sustained growth.
For investors seeking more comprehensive analysis and additional InvestingPro Tips, the platform offers a broader range of insights. There are currently a total of 5 additional tips listed in InvestingPro for First Community Bankshares, which can be accessed by visiting https://www.investing.com/pro/FCBC. To enhance the value of their subscription, users can apply the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.