First Community Bankshares, Inc. has recently released its 10-K report, providing a detailed overview of its financial performance and operations. The company operates as the financial holding company for First Community Bank, offering various banking products and services. As of December 31, 2024, the Bank operated 53 branches in Virginia, West Virginia, North Carolina, and Tennessee, serving individuals and businesses across various industries. The primary source of earnings for First Community Bankshares is net interest income, supplemented by fees for services, commissions on sales, and deposit service charges. The company funds its lending and investing activities primarily through retail deposit operations of its branch banking network, retail and wholesale repurchase agreements, and Federal Home Loan Bank borrowings.
In 2024, the company reported annual net income of $51.60 million, representing an increase of $3.58 million, or 7.46%, compared to 2023. Net interest income decreased by $1.22 million, primarily due to increased rates paid on interest-bearing deposit liabilities. The net interest margin remained at 4.44%, with a decrease in the FTE net interest spread. The provision for credit losses decreased by $4.39 million, primarily due to a smaller required credit loss provision as the loan portfolio experienced a decrease of $156.21 million in 2024. Non-interest income increased by $1.94 million, driven by gains from the sale of closed branch properties and an increase in interchange income. Non-interest expense increased by $1.39 million, including a non-recurring charge of $1.80 million to settle a putative class action lawsuit.
The company's annualized return on average assets ("ROA") was 1.60% for the twelve months of 2024, compared to 1.48% for the same period in 2023. The non-performing loans to total loans increased to 0.83% of total loans, while the allowance for credit losses to total loans was 1.44% at December 31, 2024, compared to 1.41% for the same period in 2023. Additionally, the company repurchased 257,294 common shares during 2024 for a total cost of $8.72 million, and the book value per share at December 31, 2024, was $28.73, an increase of $1.53 from year-end 2023.
The company also provided information on critical accounting policies, including the allowance for credit losses and goodwill, as well as its use of non-GAAP financial measures, such as fully taxable equivalent ("FTE") basis, to enhance the understanding of its business and performance.
Furthermore, the company addressed the impact of Hurricane Helene, which made landfall in Florida’s panhandle and 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 the hurricane to have a material impact on its financial condition or results of operations. As a result of these announcements, the company's shares have moved 0.1% on the market, 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.
