Yahoo Finanza First Community Bankshares Inc. (FCBC) Exceeds Analyst Earnings Estimates in Q1 2024
Net Income: Reported $12.85 million for Q1 2024, an increase of 9.02% year-over-year, surpassing the estimated $10.50 million.
Earnings Per Share (EPS): Achieved $0.71 per diluted share, exceeding the estimated $0.60.
Revenue: Details not provided in the text, thus comparison to the estimated $39.72 million cannot be made.
Dividend: Declared a quarterly cash dividend of $0.29 per share, continuing a 39-year tradition of regular dividends.
Net Interest Margin: Increased to 4.47%, up from the same quarter last year, driven by higher earnings on loans.
Asset Quality: Non-performing loans to total loans ratio rose to 0.78%, with net charge-offs of $1.74 million, maintaining the same level of charge-offs as the previous year.
Stock Repurchase: Repurchased 89,396 common shares at a total cost of $2.97 million during the first quarter of 2024.
On April 23, 2024, First Community Bankshares Inc. (NASDAQ:FCBC) announced its first-quarter results, showcasing a notable performance that surpassed analyst expectations. The company reported a net income of $12.85 million, or $0.71 per diluted share, exceeding the estimated earnings per share of $0.60 and net income of $10.50 million. The details were disclosed in their recent 8-K filing.
First Community Bankshares Inc., headquartered in Bluefield, Virginia, operates as a financial holding company through its subsidiary, First Community Bank. The bank offers a comprehensive range of banking products and services including deposit accounts, loans, credit and debit card services, trust services, investment management, and insurance products. The company's earnings are primarily derived from interest, fees, and commissions.
Quarterly Financial Highlights
The first quarter of 2024 saw FCBC achieving a net income of $12.85 million, marking a 9.02% increase from the same quarter in 2023. This growth is attributed to a rise in net interest income by $2.22 million, bolstered by higher benchmark interest rates that improved the net interest margin to 4.47%. Additionally, the acquisition of Surrey Bancorp on April 21, 2023, significantly contributed to this performance by adding approximately $239.08 million in loans.
Noninterest income also saw an increase of approximately $676 thousand, or 7.88%, mainly due to higher interchange income. However, noninterest expenses rose by $2.57 million, or 12.36%, primarily due to increased salaries, service fees, and other operating expenses, reflecting the expansion from the Surrey acquisition.
Balance Sheet and Asset Quality
As of March 31, 2024, FCBC's consolidated assets stood at $3.24 billion. The quarter witnessed a strategic decrease in securities available for sale by $114.71 million, primarily due to the maturity of U.S. Treasury Notes. This was accompanied by a reduction in loans by $52.47 million and deposits by $40.11 million. The company also repurchased 89,396 common shares for a total cost of $2.97 million during the quarter.
Despite these changes, non-performing loans to total loans slightly increased to 0.78%. Net charge-offs for the quarter were $1.74 million, maintaining a consistent level with the same period in 2023.
Strategic Dividend and Shareholder Value
FCBC declared a quarterly cash dividend of $0.29 per common share, continuing its 39-year tradition of regular dividends. This consistent return to shareholders underscores the company's robust financial health and commitment to delivering shareholder value.
Conclusion
First Community Bankshares Inc.'s first-quarter performance in 2024 highlights its effective management and strategic initiatives, which have led to financial growth exceeding market expectations. The integration of Surrey Bancorp has notably enhanced FCBC's loan portfolio and revenue streams, positioning the company for sustained growth in the competitive banking sector.
For detailed financial metrics and further information, investors and stakeholders are encouraged to review the full earnings report and supplementary materials provided by First Community Bankshares Inc.
Explore the complete 8-K earnings release (here) from First Community Bankshares Inc for further details.
This article first appeared on GuruFocus.
