First Community Bankshares, Inc. has recently released its 10-Q report, detailing its financial performance for the first quarter of 2025. First Community Bankshares, Inc. operates as the financial holding company for First Community Bank, offering various banking products and services through its 53 branches in Virginia, West Virginia, North Carolina, and Tennessee. The company's primary source of earnings is net interest income, supplemented by fees for services, commissions on sales, and deposit service charges. It also provides trust management, estate administration, and investment advisory services through its Trust Division and subsidiary First Community Wealth Management Inc.
In the first quarter of 2025, the net interest margin was reported at 4.34%, with a decrease in interest income for loans and securities available-for-sale. Noninterest income increased by approximately $970 thousand, driven by higher service charges on deposits and other operating income. However, noninterest expense also increased by $1.56 million, primarily due to higher salaries and benefits.
The company's annualized return on average assets (ROA) for the first quarter of 2025 was 1.49%, compared to 1.60% for the same period in 2024. The return on average common equity (ROE) was 9.49% for the first quarter of 2025, down from 10.18% for the same period in 2024. As of March 31, 2025, the company's consolidated assets totaled $3.23 billion.
The report also highlighted changes in the company's financial condition, including decreases in loans, securities available for sale, and deposits. The net effect of these balance sheet changes resulted in an increase in cash and cash equivalents of $37.23 million, or 9.86%. Additionally, the company did not repurchase any common shares during the first quarter of 2025.
The report also addressed economic and trade policy uncertainty, stating that the company continues to monitor the potential impact of evolving trade policies. However, as of the reporting date, management has determined that there are no material adverse effects on the company's financial position, results of operations, or estimates related to credit losses or asset impairments.
In terms of net income, the company reported a decrease of $1.03 million in the first quarter of 2025 compared to the same period in 2024. The decrease was primarily attributable to a decrease in net interest income of $1.33 million.
Following these announcements, the company's shares moved 2.3%, and are now trading at a price of $38.8. Check out the company's full 10-Q submission here.
