First Community Bankshares, Inc. has recently released its 10-K report, revealing a comprehensive overview of its financial and operational performance. The company operates as the financial holding company for First Community Bank, offering a wide range of banking products and services, including various deposit accounts, loans, trust management, estate administration, and investment advisory services. As of December 31, 2024, the bank operated 53 branches across Virginia, West Virginia, North Carolina, and Tennessee.
In the Management’s Discussion and Analysis of Financial Condition and Results of Operations section, the company highlighted its primary source of earnings as net interest income, supplemented by fees for services, commissions on sales, and various deposit service charges. It also mentioned its funding sources for lending and investing activities, primarily through retail deposit operations, retail and wholesale repurchase agreements, and Federal Home Loan Bank borrowings.
The report further discussed critical accounting policies, such as the allowance for credit losses and goodwill. It detailed the methodology used to estimate the allowance for credit losses, including the economic variables considered, such as the national unemployment rate. The company also provided insights into its approach to business combinations and the testing for impairment of goodwill.
In the Performance Overview section, the company highlighted its annual net income of $51.60 million for 2024, representing a 7.46% increase compared to 2023. It also reported a net interest margin of 4.44% and a return on average assets of 1.60% for the twelve months of 2024. Additionally, the company repurchased 257,294 common shares during 2024 for a total cost of $8.72 million, and its book value per share at December 31, 2024, was $28.73, showing an increase from year-end 2023.
The report also addressed the impact of Hurricane Helene, stating that the hurricane had a significant impact on western North Carolina, resulting in property damage to customers and the disruption of businesses. However, based on the company's assessment, it does not expect the losses related to Hurricane Helene to have a material impact on its financial condition or results of operations.
Following these announcements, the company's shares moved 0.1%, and are now trading at a price of $39.33. If you want to know more, read the company's complete 10-K report here.
