First Community Bankshares, Inc. Announces Third Quarter 2022 Results and Quarterly Cash Dividend
25 Ottobre 2022 - 10:06PM
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 September 30, 2022. The Company reported net
income of $13.35 million, or $0.81 per diluted common share, for
the quarter ended September 30, 2022. Net income for the nine
months ended September 30, 2022, was $34.08 million or $2.05 per
diluted common share.
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 2021. The
quarterly dividend is payable to common shareholders of record on
November 4, 2022, and is expected to be paid on or about November
18, 2022. This marks the 37th consecutive year of regular dividends
to common shareholders.
Third Quarter 2022 and Current
Highlights
Income
Statement
- Net income of $13.35 million for
the quarter was an increase of $743 thousand compared to $12.61
million recorded in the same quarter of 2021. The increase is
primarily attributable to an increase in net interest income of
$4.2 million and the branch sale gains of $1.66 million offset by
an increase in the provision for credit losses of $2.08 million and
an increase in salaries and employee benefits of $1.44 million
compared to 2021.
- On September 16, 2022, the Company
completed the sale of First Community Bank’s Emporia, Virginia
branch to Benchmark Community Bank. A gain of $1.66 million was
realized from the sale.
- When adjusted for non-core and
non-recurring items, adjusted earnings have increased from
$9.52 million in the first quarter and $11.14 million in the second
quarter of 2022.
- Net interest margin for the third
quarter was 4.01%, which was a 45 basis point increase from 3.56%
reported for third quarter of 2021. The yield on earning assets
increased 42 basis points, primarily driven by increased earnings
on securities and overnight funds.
- The cost of interest-bearing
deposits declined 6 basis points to 0.08%, primarily driven by a
decrease in the cost of time deposits and focus on non-maturing
deposits. Additionally, non-maturing deposit balances remained
strong even after the Emporia branch sale.
- Net interest income increased $4.2
million compared to the same quarter of 2021. Interest income from
securities of $1.79 million was an increase of $1.34 million over
the third quarter of 2021. Interest on fed funds also increased
$1.31 million to $1.53 million for the third quarter as a result of
the Federal Open Market Committee’s incremental 300 basis point
rate increase in overnight rates throughout 2022 as compared to the
overnight rates of 2021. Interest and fees on loans increased $1.29
million from the same quarter of 2021 and is primarily attributable
to loan demand and originations.
- The provision for credit losses of
$685 thousand for the quarter was an increase of $2.08 million
compared to the same quarter of 2021. The increase was attributable
to a return to normalized provisions as compared with prior year
recoveries of pandemic-related provisioning.
- Despite the significant increase in
credit loss provision over 2021, annualized return on average
assets was 1.63% for the third quarter and 1.41% for the first nine
months of 2022. Annualized return on average common equity was
12.60% for the third quarter and 10.73% for the first nine months
of 2022.
- Salaries and employee benefits for
the third quarter increased $1.44 million, or 13.48%, over the same
quarter in 2021. Salaries and employee benefits for the first nine
months increased $3.52 million, or 11.10%, over the first nine
months of 2021. During the first quarter of 2022, the Company
implemented annualized wage increases of approximately $2.5 million
as part of its ongoing strategic initiative to enhance Human
Capital Management, which included an increased minimum wage.
Balance Sheet and Asset
Quality
- The Company’s loan portfolio
increased by $197.16 million, an annualized growth rate of 12.17%,
during the first nine months of 2022. Loan demand and originations
were strong in all categories, including construction, commercial
real estate, residential mortgage, and consumer loans.
- Total deposits sold to Benchmark as
part of the Emporia branch sale totaled $61.05 million.
- During the third quarter, the
Company repurchased 235,400 of its common shares for $7.38 million.
The Company repurchased 650,907 common shares for $19.42 million
during the first nine months of 2022.
- Non-performing loans to total loans
remained very low at 0.71% of total loans and continues the
declining trend experienced over the past four
quarters. The Company experienced net charge-offs for
the third quarter of 2022 of $1.05 million, or 0.18% of annualized
average loans, compared to net charge-offs of $586 thousand, or
0.11% of annualized average loans, for the same period in 2021. Net
charge-offs for the nine-month period ended September 30, 2022,
were $1.63 million, or 0.10% of annualized average loans, compared
to net charge-offs of $1.79 million, or 0.11% of annualized average
loans, for the same period in 2021.
- The allowance for credit losses to
total loans decreased slightly to 1.24% of total loans.
- Book value per share at September
30, 2022, was $25.33, a slight decrease of $0.01 from year-end
2021.
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 September 30, 2022. 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 $1.19 billion in combined assets as of September 30,
2022. The Company reported consolidated assets of $3.16 billion as
of September 30, 2022. 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 |
|
Nine Months
Ended |
(Amounts in thousands,
except share and per share data) |
September
30, |
|
June
30, |
|
March
31, |
|
December
31, |
|
September
30, |
|
September 30, |
2022 |
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2022 |
|
2021 |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
26,405 |
|
|
$ |
25,651 |
|
|
$ |
24,641 |
|
|
$ |
25,236 |
|
|
$ |
25,119 |
|
|
$ |
76,697 |
|
|
$ |
77,596 |
|
|
Interest on securities |
|
1,785 |
|
|
|
1,551 |
|
|
|
750 |
|
|
|
362 |
|
|
|
445 |
|
|
|
4,086 |
|
|
|
1,375 |
|
|
Interest on deposits in banks |
|
1,532 |
|
|
|
768 |
|
|
|
248 |
|
|
|
234 |
|
|
|
225 |
|
|
|
2,548 |
|
|
|
507 |
|
Total interest income |
|
29,722 |
|
|
|
27,970 |
|
|
|
25,639 |
|
|
|
25,832 |
|
|
|
25,789 |
|
|
|
83,331 |
|
|
|
79,478 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
380 |
|
|
|
422 |
|
|
|
486 |
|
|
|
600 |
|
|
|
642 |
|
|
|
1,288 |
|
|
|
2,235 |
|
|
Interest on borrowings |
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
Total interest expense |
|
380 |
|
|
|
423 |
|
|
|
486 |
|
|
|
600 |
|
|
|
643 |
|
|
|
1,289 |
|
|
|
2,236 |
|
Net interest income |
|
29,342 |
|
|
|
27,547 |
|
|
|
25,153 |
|
|
|
25,232 |
|
|
|
25,146 |
|
|
|
82,042 |
|
|
|
77,242 |
|
Provision for (recovery of) credit losses |
|
685 |
|
|
|
510 |
|
|
|
1,961 |
|
|
|
(846 |
) |
|
|
(1,394 |
) |
|
|
3,156 |
|
|
|
(7,625 |
) |
Net interest income after provision |
|
28,657 |
|
|
|
27,037 |
|
|
|
23,192 |
|
|
|
26,078 |
|
|
|
26,540 |
|
|
|
78,886 |
|
|
|
84,867 |
|
Noninterest income |
|
9,950 |
|
|
|
8,854 |
|
|
|
9,194 |
|
|
|
9,215 |
|
|
|
8,720 |
|
|
|
27,998 |
|
|
|
25,086 |
|
Noninterest expense |
|
21,145 |
|
|
|
21,255 |
|
|
|
19,986 |
|
|
|
21,701 |
|
|
|
18,836 |
|
|
|
62,386 |
|
|
|
57,017 |
|
Income before income taxes |
|
17,462 |
|
|
|
14,636 |
|
|
|
12,400 |
|
|
|
13,592 |
|
|
|
16,424 |
|
|
|
44,498 |
|
|
|
52,936 |
|
Income tax expense |
|
4,111 |
|
|
|
3,423 |
|
|
|
2,885 |
|
|
|
3,037 |
|
|
|
3,816 |
|
|
|
10,419 |
|
|
|
12,323 |
|
Net income |
$ |
13,351 |
|
|
$ |
11,213 |
|
|
$ |
9,515 |
|
|
$ |
10,555 |
|
|
$ |
12,608 |
|
|
$ |
34,079 |
|
|
$ |
40,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.82 |
|
|
$ |
0.67 |
|
|
$ |
0.57 |
|
|
$ |
0.62 |
|
|
$ |
0.73 |
|
|
$ |
2.05 |
|
|
$ |
2.32 |
|
|
Diluted |
|
0.81 |
|
|
|
0.67 |
|
|
|
0.56 |
|
|
|
0.62 |
|
|
|
0.73 |
|
|
|
2.05 |
|
|
|
2.32 |
|
Cash dividends per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regular |
|
0.29 |
|
|
|
0.27 |
|
|
|
0.27 |
|
|
|
0.27 |
|
|
|
0.27 |
|
|
|
0.83 |
|
|
|
0.77 |
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
16,378,022 |
|
|
|
16,662,817 |
|
|
|
16,817,284 |
|
|
|
16,974,005 |
|
|
|
17,221,244 |
|
|
|
16,617,766 |
|
|
|
17,457,477 |
|
|
Diluted |
|
16,413,202 |
|
|
|
16,682,615 |
|
|
|
16,864,515 |
|
|
|
17,038,980 |
|
|
|
17,279,576 |
|
|
|
16,654,697 |
|
|
|
17,511,900 |
|
Performance ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.63 |
% |
|
|
1.38 |
% |
|
|
1.20 |
% |
|
|
1.32 |
% |
|
|
1.59 |
% |
|
|
1.41 |
% |
|
|
1.74 |
% |
|
Return on average common equity |
|
12.60 |
% |
|
|
10.61 |
% |
|
|
8.98 |
% |
|
|
9.77 |
% |
|
|
11.65 |
% |
|
|
10.73 |
% |
|
|
12.70 |
% |
|
Return on average tangible common equity(1) |
|
18.51 |
% |
|
|
15.56 |
% |
|
|
13.10 |
% |
|
|
14.28 |
% |
|
|
17.04 |
% |
|
|
15.71 |
% |
|
|
18.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
Nine Months
Ended |
|
|
September
30, |
June
30, |
|
March
31, |
|
December
31, |
September
30, |
September 30, |
(Amounts in thousands) |
2022 |
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2022 |
|
2021 |
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management |
$ |
932 |
|
$ |
993 |
|
$ |
972 |
|
$ |
940 |
|
$ |
974 |
|
$ |
2,897 |
|
$ |
2,913 |
|
|
Service charges on deposits |
|
3,689 |
|
|
3,672 |
|
|
3,498 |
|
|
3,718 |
|
|
3,599 |
|
|
10,859 |
|
|
9,728 |
|
|
Other service charges and fees |
|
2,988 |
|
|
3,297 |
|
|
3,017 |
|
|
3,091 |
|
|
3,143 |
|
|
9,302 |
|
|
9,331 |
|
|
Net FDIC indemnification asset amortization |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(1,226 |
) |
|
Gain on divestiture |
|
1,658 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,658 |
|
|
- |
|
|
Other operating income |
|
683 |
|
|
892 |
|
|
1,707 |
|
|
1,466 |
|
|
1,004 |
|
|
3,282 |
|
|
4,340 |
|
Total noninterest income |
$ |
9,950 |
|
$ |
8,854 |
|
$ |
9,194 |
|
$ |
9,215 |
|
$ |
8,720 |
|
$ |
27,998 |
|
$ |
25,086 |
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
$ |
12,081 |
|
$ |
11,518 |
|
$ |
11,671 |
|
$ |
12,493 |
|
$ |
10,646 |
|
$ |
35,270 |
|
$ |
31,746 |
|
|
Occupancy expense |
|
1,188 |
|
|
1,165 |
|
|
1,269 |
|
|
1,368 |
|
|
1,155 |
|
|
3,622 |
|
|
3,545 |
|
|
Furniture and equipment expense |
|
1,478 |
|
|
1,496 |
|
|
1,614 |
|
|
1,418 |
|
|
1,385 |
|
|
4,588 |
|
|
4,209 |
|
|
Service fees |
|
1,635 |
|
|
2,563 |
|
|
1,503 |
|
|
1,946 |
|
|
1,530 |
|
|
5,701 |
|
|
4,378 |
|
|
Advertising and public relations |
|
718 |
|
|
577 |
|
|
540 |
|
|
589 |
|
|
536 |
|
|
1,835 |
|
|
1,487 |
|
|
Professional fees |
|
208 |
|
|
544 |
|
|
453 |
|
|
455 |
|
|
313 |
|
|
1,205 |
|
|
1,069 |
|
|
Amortization of intangibles |
|
365 |
|
|
360 |
|
|
357 |
|
|
364 |
|
|
365 |
|
|
1,082 |
|
|
1,082 |
|
|
FDIC premiums and assessments |
|
321 |
|
|
257 |
|
|
218 |
|
|
213 |
|
|
216 |
|
|
796 |
|
|
619 |
|
|
Divestiture expense |
|
153 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
153 |
|
|
- |
|
|
Other operating expense |
|
2,998 |
|
|
2,775 |
|
|
2,361 |
|
|
2,855 |
|
|
2,690 |
|
|
8,134 |
|
|
8,882 |
|
Total noninterest expense |
$ |
21,145 |
|
$ |
21,255 |
|
$ |
19,986 |
|
$ |
21,701 |
|
$ |
18,836 |
|
$ |
62,386 |
|
$ |
57,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED
EARNINGS (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Nine Months
Ended |
|
|
|
September
30, |
|
June
30, |
|
March
31, |
|
December
31, |
|
September
30, |
|
September 30, |
|
|
|
2022 |
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2022 |
|
2021 |
(Amounts in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
13,351 |
|
|
$ |
11,213 |
|
|
$ |
9,515 |
|
|
$ |
10,555 |
|
|
$ |
12,608 |
|
|
$ |
34,079 |
|
|
$ |
40,613 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (gain) loss on sale of securities |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Divestiture expense |
|
153 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
153 |
|
|
|
- |
|
|
Gain on divestiture |
|
(1,658 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,658 |
) |
|
|
|
Other items(1) |
|
- |
|
|
|
(92 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(92 |
) |
|
|
- |
|
Total adjustments |
|
(1,505 |
) |
|
|
(92 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,597 |
) |
|
|
- |
|
Tax effect |
|
(361 |
) |
|
|
(22 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(383 |
) |
|
|
- |
|
Adjusted earnings, non-GAAP |
$ |
12,207 |
|
|
$ |
11,143 |
|
|
$ |
9,515 |
|
|
$ |
10,555 |
|
|
$ |
12,608 |
|
|
$ |
32,865 |
|
|
$ |
40,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings per common share, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-GAAP |
$ |
0.74 |
|
|
$ |
0.67 |
|
|
$ |
0.56 |
|
|
$ |
0.62 |
|
|
$ |
0.73 |
|
|
$ |
1.97 |
|
|
$ |
2.32 |
|
Performance ratios, non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted return on average assets |
|
1.49 |
% |
|
|
1.37 |
% |
|
|
1.20 |
% |
|
|
1.32 |
% |
|
|
1.59 |
% |
|
|
1.36 |
% |
|
|
1.74 |
% |
|
Adjusted return on average common equity |
|
11.52 |
% |
|
|
10.55 |
% |
|
|
8.98 |
% |
|
|
9.77 |
% |
|
|
11.65 |
% |
|
|
10.35 |
% |
|
|
12.70 |
% |
|
Adjusted return on average tangible |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common equity(2) |
|
16.92 |
% |
|
|
15.46 |
% |
|
|
13.10 |
% |
|
|
14.28 |
% |
|
|
17.04 |
% |
|
|
15.16 |
% |
|
|
18.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 30, |
|
|
|
2022 |
|
2021 |
|
|
|
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) |
$ |
2,334,596 |
|
$ |
26,474 |
|
4.50 |
% |
|
$ |
2,149,647 |
|
$ |
25,161 |
|
4.64 |
% |
|
Securities available for sale |
|
301,360 |
|
|
1,833 |
|
2.41 |
% |
|
|
79,995 |
|
|
509 |
|
2.52 |
% |
|
Interest-bearing deposits |
|
275,290 |
|
|
1,531 |
|
2.21 |
% |
|
|
586,787 |
|
|
224 |
|
0.15 |
% |
Total earning assets |
|
2,911,246 |
|
|
29,838 |
|
4.07 |
% |
|
|
2,816,429 |
|
|
25,894 |
|
3.65 |
% |
Other assets |
|
328,534 |
|
|
|
|
|
|
330,679 |
|
|
|
|
Total assets |
$ |
3,239,780 |
|
|
|
|
|
$ |
3,147,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
$ |
689,376 |
|
$ |
28 |
|
0.02 |
% |
|
$ |
651,237 |
|
$ |
27 |
|
0.02 |
% |
|
Savings deposits |
|
887,454 |
|
|
67 |
|
0.03 |
% |
|
|
826,144 |
|
|
63 |
|
0.03 |
% |
|
Time deposits |
|
317,294 |
|
|
285 |
|
0.36 |
% |
|
|
378,895 |
|
|
551 |
|
0.58 |
% |
Total interest-bearing deposits |
|
1,894,124 |
|
|
380 |
|
0.08 |
% |
|
|
1,856,276 |
|
|
641 |
|
0.14 |
% |
Borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
Retail repurchase agreements |
|
2,378 |
|
|
- |
|
N/M |
|
|
1,040 |
|
|
1 |
|
0.07 |
% |
Total borrowings |
|
2,378 |
|
|
- |
|
N/M |
|
|
1,040 |
|
|
1 |
|
0.07 |
% |
Total interest-bearing liabilities |
|
1,896,502 |
|
|
380 |
|
0.08 |
% |
|
|
1,857,316 |
|
|
642 |
|
0.14 |
% |
Noninterest-bearing demand deposits |
|
881,429 |
|
|
|
|
|
|
824,112 |
|
|
|
|
Other liabilities |
|
41,373 |
|
|
|
|
|
|
36,419 |
|
|
|
|
Total liabilities |
|
2,819,304 |
|
|
|
|
|
|
2,717,847 |
|
|
|
|
Stockholders' equity |
|
420,476 |
|
|
|
|
|
|
429,261 |
|
|
|
|
Total liabilities and stockholders' equity |
$ |
3,239,780 |
|
|
|
|
|
$ |
3,147,108 |
|
|
|
|
Net interest income, FTE(1) |
|
|
$ |
29,458 |
|
|
|
|
|
$ |
25,252 |
|
|
Net interest rate spread |
|
|
|
|
3.99 |
% |
|
|
|
|
|
3.51 |
% |
Net interest margin, FTE(1) |
|
|
|
|
4.01 |
% |
|
|
|
|
|
3.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $487 thousand and $1.01 million for the
three months ended September 30, 2022 and 2021, respectively. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
2022 |
|
2021 |
|
|
|
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) |
$ |
2,269,974 |
|
$ |
76,886 |
|
4.53 |
% |
|
$ |
2,149,556 |
|
$ |
77,722 |
|
4.83 |
% |
|
Securities available for sale |
|
241,640 |
|
|
4,230 |
|
2.34 |
% |
|
|
82,563 |
|
|
1,590 |
|
2.57 |
% |
|
Interest-bearing deposits |
|
398,326 |
|
|
2,549 |
|
0.86 |
% |
|
|
555,435 |
|
|
508 |
|
0.12 |
% |
Total earning assets |
|
2,909,940 |
|
|
83,665 |
|
3.84 |
% |
|
|
2,787,554 |
|
|
79,820 |
|
3.83 |
% |
Other assets |
|
329,508 |
|
|
|
|
|
|
331,239 |
|
|
|
|
Total assets |
$ |
3,239,448 |
|
|
|
|
|
$ |
3,118,793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
$ |
689,226 |
|
$ |
85 |
|
0.02 |
% |
|
$ |
639,809 |
|
$ |
99 |
|
0.02 |
% |
|
Savings deposits |
|
888,062 |
|
|
200 |
|
0.03 |
% |
|
|
807,863 |
|
|
217 |
|
0.04 |
% |
|
Time deposits |
|
331,808 |
|
|
1,003 |
|
0.40 |
% |
|
|
395,465 |
|
|
1,918 |
|
0.65 |
% |
Total interest-bearing deposits |
|
1,909,096 |
|
|
1,288 |
|
0.09 |
% |
|
|
1,843,137 |
|
|
2,234 |
|
0.16 |
% |
Borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
Retail repurchase agreements |
|
2,161 |
|
|
1 |
|
0.07 |
% |
|
|
1,179 |
|
|
1 |
|
0.07 |
% |
Total borrowings |
|
2,161 |
|
|
1 |
|
0.07 |
% |
|
|
1,179 |
|
|
1 |
|
0.07 |
% |
Total interest-bearing liabilities |
|
1,911,257 |
|
|
1,289 |
|
0.09 |
% |
|
|
1,844,316 |
|
|
2,235 |
|
0.16 |
% |
Noninterest-bearing demand deposits |
|
864,119 |
|
|
|
|
|
|
809,128 |
|
|
|
|
Other liabilities |
|
39,487 |
|
|
|
|
|
|
37,871 |
|
|
|
|
Total liabilities |
|
2,814,863 |
|
|
|
|
|
|
2,691,315 |
|
|
|
|
Stockholders' equity |
|
424,585 |
|
|
|
|
|
|
427,478 |
|
|
|
|
Total liabilities and stockholders' equity |
$ |
3,239,448 |
|
|
|
|
|
$ |
3,118,793 |
|
|
|
|
Net interest income, FTE(1) |
|
|
$ |
82,376 |
|
|
|
|
|
$ |
77,585 |
|
|
Net interest rate spread |
|
|
|
|
3.75 |
% |
|
|
|
|
|
3.67 |
% |
Net interest margin, FTE(1) |
|
|
|
|
3.78 |
% |
|
|
|
|
|
3.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $2.22 million and $3.45 million for the
nine months ended September 30, 2022 and 2021, respectively. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30, |
June
30, |
|
March
31, |
|
December
31, |
September
30, |
(Amounts in thousands, except per share data) |
2022 |
|
2022 |
|
2022 |
|
2021 |
|
2021 |
Assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
229,095 |
|
|
$ |
398,242 |
|
|
$ |
457,306 |
|
|
$ |
677,439 |
|
|
$ |
635,007 |
|
Debt securities available for sale |
|
299,620 |
|
|
|
287,767 |
|
|
|
268,703 |
|
|
|
76,292 |
|
|
|
77,440 |
|
Loans held for investment, net of unearned income |
|
2,362,733 |
|
|
|
2,299,798 |
|
|
|
2,244,296 |
|
|
|
2,165,569 |
|
|
|
2,152,103 |
|
|
Allowance for credit losses |
|
(29,388 |
) |
|
|
(29,749 |
) |
|
|
(28,981 |
) |
|
|
(27,858 |
) |
|
|
(29,877 |
) |
Loans held for investment, net |
|
2,333,345 |
|
|
|
2,270,049 |
|
|
|
2,215,315 |
|
|
|
2,137,711 |
|
|
|
2,122,226 |
|
Premises and equipment, net |
|
47,891 |
|
|
|
49,752 |
|
|
|
50,912 |
|
|
|
52,284 |
|
|
|
52,842 |
|
Other real estate owned |
|
559 |
|
|
|
579 |
|
|
|
848 |
|
|
|
1,015 |
|
|
|
1,240 |
|
Interest receivable |
|
8,345 |
|
|
|
8,433 |
|
|
|
8,100 |
|
|
|
7,900 |
|
|
|
8,146 |
|
Goodwill |
|
129,565 |
|
|
|
129,565 |
|
|
|
129,565 |
|
|
|
129,565 |
|
|
|
129,565 |
|
Other intangible assets |
|
4,541 |
|
|
|
4,905 |
|
|
|
5,266 |
|
|
|
5,622 |
|
|
|
5,987 |
|
Other assets |
|
107,838 |
|
|
|
109,085 |
|
|
|
108,112 |
|
|
|
106,691 |
|
|
|
107,258 |
|
Total assets |
$ |
3,160,799 |
|
|
$ |
3,258,377 |
|
|
$ |
3,244,127 |
|
|
$ |
3,194,519 |
|
|
$ |
3,139,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
878,423 |
|
|
$ |
877,962 |
|
|
$ |
860,652 |
|
|
$ |
842,783 |
|
|
$ |
820,147 |
|
|
Interest-bearing |
|
1,831,798 |
|
|
|
1,920,577 |
|
|
|
1,922,292 |
|
|
|
1,886,608 |
|
|
|
1,853,699 |
|
Total deposits |
|
2,710,221 |
|
|
|
2,798,539 |
|
|
|
2,782,944 |
|
|
|
2,729,391 |
|
|
|
2,673,846 |
|
Securities sold under agreements to repurchase |
|
1,958 |
|
|
|
2,635 |
|
|
|
2,488 |
|
|
|
1,536 |
|
|
|
1,106 |
|
Interest, taxes, and other liabilities |
|
36,362 |
|
|
|
39,157 |
|
|
|
34,539 |
|
|
|
35,817 |
|
|
|
37,395 |
|
Total liabilities |
|
2,748,541 |
|
|
|
2,840,331 |
|
|
|
2,819,971 |
|
|
|
2,766,744 |
|
|
|
2,712,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
|
|
|
Common stock |
|
16,273 |
|
|
|
16,502 |
|
|
|
16,782 |
|
|
|
16,878 |
|
|
|
17,071 |
|
Additional paid-in capital |
|
129,914 |
|
|
|
136,705 |
|
|
|
144,088 |
|
|
|
147,619 |
|
|
|
154,086 |
|
Retained earnings |
|
285,096 |
|
|
|
276,499 |
|
|
|
269,798 |
|
|
|
264,824 |
|
|
|
258,860 |
|
Accumulated other comprehensive loss |
|
(19,025 |
) |
|
|
(11,660 |
) |
|
|
(6,512 |
) |
|
|
(1,546 |
) |
|
|
(2,653 |
) |
Total stockholders' equity |
|
412,258 |
|
|
|
418,046 |
|
|
|
424,156 |
|
|
|
427,775 |
|
|
|
427,364 |
|
Total liabilities and stockholders' equity |
$ |
3,160,799 |
|
|
$ |
3,258,377 |
|
|
$ |
3,244,127 |
|
|
$ |
3,194,519 |
|
|
$ |
3,139,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at period-end |
|
16,273,177 |
|
|
|
16,502,144 |
|
|
|
16,781,975 |
|
|
|
16,878,220 |
|
|
|
17,071,052 |
|
Book value per common share |
$ |
25.33 |
|
|
$ |
25.33 |
|
|
$ |
25.27 |
|
|
$ |
25.34 |
|
|
$ |
25.03 |
|
Tangible book value per common share(1) |
|
17.09 |
|
|
|
17.18 |
|
|
|
17.24 |
|
|
|
17.34 |
|
|
|
17.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) |
|
|
|
|
|
|
|
|
|
|
|
September
30, |
June
30, |
|
March
31, |
|
December
31, |
September
30, |
(Amounts in
thousands) |
2022 |
|
2022 |
|
2022 |
|
2021 |
|
2021 |
Allowance for Credit Losses |
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
29,749 |
|
|
$ |
28,981 |
|
|
$ |
27,858 |
|
|
$ |
29,877 |
|
|
$ |
31,857 |
|
Provision
for (recovery of) |
|
|
|
|
|
|
|
|
|
credit losses charged to operations |
|
685 |
|
|
|
510 |
|
|
|
1,961 |
|
|
|
(846 |
) |
|
|
(1,394 |
) |
Charge-offs |
|
(2,158 |
) |
|
|
(1,469 |
) |
|
|
(1,302 |
) |
|
|
(1,887 |
) |
|
|
(1,255 |
) |
Recoveries |
|
1,112 |
|
|
|
1,727 |
|
|
|
464 |
|
|
|
714 |
|
|
|
669 |
|
Net
(charge-offs) recoveries |
|
(1,046 |
) |
|
|
258 |
|
|
|
(838 |
) |
|
|
(1,173 |
) |
|
|
(586 |
) |
Ending
balance |
$ |
29,388 |
|
|
$ |
29,749 |
|
|
$ |
28,981 |
|
|
$ |
27,858 |
|
|
$ |
29,877 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets |
|
|
|
|
|
|
|
|
|
Nonaccrual
loans |
$ |
15,303 |
|
|
$ |
17,826 |
|
|
$ |
20,487 |
|
|
$ |
20,768 |
|
|
$ |
22,070 |
|
Accruing
loans past due 90 days or more |
|
131 |
|
|
|
131 |
|
|
|
- |
|
|
|
87 |
|
|
|
5 |
|
Troubled
debt restructurings ("TDRs")(1) |
|
1,331 |
|
|
|
515 |
|
|
|
1,141 |
|
|
|
1,367 |
|
|
|
359 |
|
Total
nonperforming loans |
|
16,765 |
|
|
|
18,472 |
|
|
|
21,628 |
|
|
|
22,222 |
|
|
|
22,434 |
|
OREO |
|
559 |
|
|
|
579 |
|
|
|
848 |
|
|
|
1,015 |
|
|
|
1,240 |
|
Total
nonperforming assets |
$ |
17,324 |
|
|
$ |
19,051 |
|
|
$ |
22,476 |
|
|
$ |
23,237 |
|
|
$ |
23,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Information |
|
|
|
|
|
|
|
|
|
Total
accruing TDRs(2) |
$ |
7,028 |
|
|
$ |
8,313 |
|
|
$ |
8,782 |
|
|
$ |
8,652 |
|
|
$ |
8,185 |
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
Nonperforming loans to total loans |
|
0.71 |
% |
|
|
0.80 |
% |
|
|
0.96 |
% |
|
|
1.03 |
% |
|
|
1.04 |
% |
Nonperforming assets to total assets |
|
0.55 |
% |
|
|
0.58 |
% |
|
|
0.69 |
% |
|
|
0.73 |
% |
|
|
0.75 |
% |
Allowance
for credit losses to nonperforming loans |
|
175.29 |
% |
|
|
161.05 |
% |
|
|
134.00 |
% |
|
|
125.36 |
% |
|
|
133.18 |
% |
Allowance
for credit losses to total loans |
|
1.24 |
% |
|
|
1.29 |
% |
|
|
1.29 |
% |
|
|
1.29 |
% |
|
|
1.39 |
% |
Annualized
net charge-offs (recoveries) to average loans |
|
0.18 |
% |
|
|
-0.05 |
% |
|
|
0.15 |
% |
|
|
0.22 |
% |
|
|
0.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Accruing TDRs restructured within the past six months or
nonperforming |
(2) Accruing total TDRs |
|
|
|
|
|
|
|
|
|
|
FOR MORE INFORMATION, CONTACT: |
David D. Brown |
(276) 326-9000 |
Grafico Azioni First Community Bancshares (NASDAQ:FCBC)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni First Community Bancshares (NASDAQ:FCBC)
Storico
Da Giu 2023 a Giu 2024