First Community Bankshares Reports Mixed Q3 Results, Net Income Decreases 10.98% Year-Over-Year

First Community Bankshares, Inc. reported its financial results for the third quarter and the first nine months of 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. For the three months ended September 30, 2024, net income was $13.03 million, a decrease of $1.61 million (10.98%) from $14.64 million in Q3 2023. In contrast, net income for the nine months ended September 30, 2024, increased to $38.56 million, up $2.33 million (6.42%) from $36.24 million in the same period of 2023.

Total interest income for Q3 2024 rose to $36.89 million, compared to $36.11 million in Q3 2023. However, net interest income decreased to $31.59 million from $33.35 million year-over-year, primarily due to increased rates on interest-bearing deposits. The net interest margin for Q3 2024 was 4.41%, down 10 basis points from the previous year. Noninterest income also saw an increase, reaching $10.45 million, up $830 thousand (8.63%) from $9.62 million in Q3 2023, bolstered by a gain from the sale of closed branch properties.

Total assets as of September 30, 2024, were $3.22 billion, a decrease of $44.18 million (1.35%) from December 31, 2023. Total deposits fell by $63.07 million (2.32%) to $2.66 billion, with significant declines in noninterest-bearing and interest-bearing demand deposits. Conversely, cash and cash equivalents surged by $198.92 million (170.86%) to $315.34 million.

The company’s loan portfolio decreased by $128.19 million (4.98%) from December 31, 2023, with commercial loans accounting for 65% of total loans. The allowance for credit losses for loans was $35.12 million, representing 1.44% of total loans, a slight decrease from the previous period.

Strategically, First Community Bankshares completed the acquisition of Surrey Bancorp in April 2023 for $71.37 million, which contributed to goodwill and core deposit intangibles. The company incurred $2.99 million in merger expenses related to this transaction.

As of September 30, 2024, total stockholders' equity increased to $520.69 million, up $17.40 million (3.46%) from December 31, 2023. The book value per share rose to $28.47, reflecting a $1.27 increase from year-end 2023. The company continues to maintain a strong capital position, meeting all regulatory capital adequacy requirements.