BLUEFIELD, Va. - First Community (NASDAQ:FCCO) Bankshares, Inc. (NASDAQ:FCBC), a financial holding company, announced a decline in third-quarter earnings for 2024 compared to the same period in 2023. The company reported a net income of $13.03 million, or $0.71 per diluted common share, a decrease of approximately 11% from the third quarter of the previous year.
For the nine months ending September 30, 2024, the net income stood at $38.56 million, or $2.09 per diluted common share, marking a 6.42% increase from the same period in 2023. Despite the decrease in quarterly earnings, the company has declared a quarterly cash dividend of $0.31 per common share, continuing its 39-year tradition of regular dividends.
The bank's net interest income saw a reduction of $1.75 million compared to the third quarter of 2023, primarily due to higher rates paid on interest-bearing deposits. The net interest margin also decreased by 10 basis points over the same quarter last year.
Noninterest income showed an increase of approximately $830 thousand, or 8.63%, compared to the third quarter of 2023. This included a gain of $825 thousand from the sale of two closed branch properties. Noninterest expense also rose by $1.26 million, or 5.52%.
In terms of asset quality, the company reported a slight uptick in non-performing loans to total loans, reaching 0.82% compared to the same quarter in 2023. The allowance for credit losses to total loans was 1.44% at the end of September 2024.
First Community Bankshares also highlighted its support for customers affected by Hurricane Helene, offering payment relief for affected borrowers in North Carolina, Tennessee, Virginia, and southern West Virginia.
The balance sheet reflected a decrease in loans by 4.98% from December 31, 2023, and securities available for sale dropped by 40.68%. Conversely, cash and cash equivalents increased by 170.86%.
The company's stock is traded on the NASDAQ Global Select Market under the ticker FCBC. This information is based on a press release statement.
In other recent news, First Community Bankshares reported a significant 29.26% increase in its net income for the second quarter of 2024, reaching $12.69 million. This growth was accompanied by a substantial reduction in the provision for credit losses and a recovery of provision for the allowance for unfunded commitments. Despite a decrease in net interest income due to higher rates paid on interest-bearing deposits, the company also declared a quarterly cash dividend of $0.31 per common share, continuing its 39-year tradition of regular dividends.
On the administrative side, First Community Bankshares renewed employment agreements with its top executive officers, including the CEO, President, CFO, COO, and Chief Administrative Officer. The new contracts span an initial three-year period ending December 31, 2027, with automatic annual renewals extending the term for an additional three years.
In the event of termination without Cause or resignation for Good Reason not related to a Change of Control, executives will receive eighteen months of base salary continuation and health benefits. However, if such a termination or resignation occurs within thirty-six months following a Change of Control, the compensation and benefits extend for thirty-six months.
These are among the recent developments at First Community Bankshares.
InvestingPro Insights
First Community Bankshares, Inc. (NASDAQ:FCBC) has demonstrated resilience in its financial performance, as evidenced by recent InvestingPro data. Despite the reported decline in third-quarter earnings, the company's market capitalization stands at $788.92 million, reflecting investor confidence in its long-term prospects.
InvestingPro Tips highlight FCBC's commitment to shareholder returns. The company has maintained dividend payments for an impressive 31 consecutive years, with a current dividend yield of 2.9%. This aligns with the article's mention of the company's 39-year tradition of regular dividends. Moreover, FCBC has raised its dividend for 4 consecutive years, underscoring its financial stability and dedication to rewarding investors.
The company's P/E ratio of 15.42 suggests a reasonable valuation relative to earnings, which may be attractive to value-oriented investors. Additionally, FCBC has shown strong momentum, with a substantial 32.34% price total return over the past six months, indicating positive market sentiment despite the recent quarterly earnings dip.
For readers interested in a deeper analysis, InvestingPro offers 7 additional tips that could provide further insights into FCBC's financial health and market position.
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