First Community Bankshares, Inc. Announces Fourth Quarter Results, Quarterly Cash Dividend, and Stock Repurchase Plan
01/26/2021 - 04:30 PM
BLUEFIELD, Va., Jan. 26, 2021 (GLOBE NEWSWIRE) -- First Community Bankshares, Inc. (NASDAQ: FCBC) (www.firstcommunitybank.com ) (the “Company”) today reported its unaudited results of operations and other financial information for the quarter ended December 31, 2020. The Company reported net income of $11.55 million , or $0.65 per diluted common share, for the quarter ended December 31, 2020, which was an increase of $0.04 , or 6.56% , over the same quarter of 2019. Net income was $35.93 million , or $2.02 per diluted common share, for the twelve months ended December 31, 2020, which represents a 17.89% decrease in per share diluted earnings compared to the same period of 2019.
The Company also declared a quarterly cash dividend to common shareholders of twenty-five cents ($0.25) per common share. The quarterly dividend is payable to common shareholders of record on February 5, 2021, and is expected to be paid on or about February 19, 2021. The current year is the 11th consecutive year of regular dividend increases and the 36th consecutive year of regular dividends to common shareholders.
Additionally, today the Board of Directors authorized the repurchase of up to 2.4 million shares of the Company’s outstanding common stock through January 26, 2024. Repurchases may be made through open market purchases or in privately negotiated transactions at prevailing market prices. The actual means and timing of any purchases, target number of shares and range of prices under the program will be determined by management in its discretion and will depend on a number of factors, including the market price of the shares, general market and economic conditions, share issuances under equity plans, and applicable legal requirements and other conditions.
Fourth Quarter 2020 and Current Highlights
General The Company booked $63.56 million of new residential mortgage loans during the fourth quarter and the pipeline remains strong at $38.15 million on January 25, 2021. As of December 31, 2020, $3.94 million , or 6.46% , of the Company’s Paycheck Protection Program loan balances had been forgiven by the SBA. As of December 31, 2020, current commercial and consumer COVID-19 loan deferrals stood at $26.54 million and $5.72 million , respectively, down significantly from $436.11 million at June 30, 2020. On December 31, 2020, the Company closed two branches located in Abingdon, Virginia, acquired in the Highlands Union Bank transaction last year. The Company will continue to serve its customers in the important Abingdon market through two strategically placed branches, including its recently upgraded and remodeled Main Street branch, significantly improving efficiency while maintaining first-rate market presence. Income Statement Return on average assets remained strong at 1.54% for the fourth quarter and 1.24% for the twelve-month period. Net interest margin decreased 29 basis points to 4.18% compared to the same quarter of 2019. Net interest margin decreased 30 basis points to 4.29% for the full year 2020 compared to 2019. Both period decreases are reflective of the current historic low interest rate environment partially offset by an increase in accelerated accretion of $3.73 million for the quarter and $6.23 million for the year. Fourth quarter earnings reflect a loan loss provision of $634 thousand , an increase of $543 thousand over fourth quarter of 2019. Balance Sheet Interest-free deposits grew $144.93 million during 2020, and total deposits grew $216.34 million , or 9.29% , during 2020. Book value per share at December 31, 2020, was $24.08 , an increase of $0.75 during the year. As of December 31, 2020, the Company continues to significantly exceed regulatory “well capitalized” targets, as well as all capital targets of its capital management plan. Non-GAAP Financial Measures
In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this news release include “tangible book value per common share,” “return on average tangible common equity,” “adjusted earnings,” “adjusted diluted earnings per share,” “adjusted return on average assets,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” and certain financial measures presented on a fully taxable equivalent (“FTE”) basis. FTE basis is calculated using the federal statutory income tax rate of 21% . While the Company believes certain non-GAAP financial measures enhance the understanding of its business and performance, they are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions.
About First Community Bankshares, Inc.
First Community Bankshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 50 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of December 31, 2020. First Community Bank offers wealth management and investment advice through its Trust Division and First Community Wealth Management, which collectively managed and administered $1.18 billion in combined assets as of December 31, 2020. The Company reported consolidated assets of $3.01 billion as of December 31, 2020. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. Additional investor information is available on the Company’s website at www.firstcommunitybank.com.
This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made .
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Twelve Months Ended December 31, September 30, June 30, March 31, December 31, December 31, (Amounts in thousands, except share and per share data) 2020 2020 2020 2020 2019 2020 2019 Interest income Interest and fees on loans $ 28,101 $ 27,297 $ 26,991 $ 28,058 $ 21,837 $ 110,447 $ 88,805 Interest on securities 549 609 713 918 870 2,789 3,716 Interest on deposits in banks 96 89 82 533 663 800 2,447 Total interest income 28,746 27,995 27,786 29,509 23,370 114,036 94,968 Interest expense Interest on deposits 1,029 1,161 1,445 1,825 1,312 5,460 5,392 Interest on borrowings - - 2 2 1 4 123 Total interest expense 1,029 1,161 1,447 1,827 1,313 5,464 5,515 Net interest income 27,717 26,834 26,339 27,682 22,057 108,572 89,453 Provision for loan losses 634 4,703 3,831 3,500 91 12,668 3,571 Net interest income after provision 27,083 22,131 22,508 24,182 21,966 95,904 85,882 Noninterest income 7,733 7,638 6,913 7,549 9,314 29,833 33,677 Noninterest expense 19,877 19,171 18,913 21,664 18,883 79,625 69,763 Income before income taxes 14,939 10,598 10,508 10,067 12,397 46,112 49,796 Income tax expense 3,389 2,332 2,270 2,195 2,833 10,186 10,994 Net income $ 11,550 $ 8,266 $ 8,238 $ 7,872 $ 9,564 $ 35,926 $ 38,802 Earnings per common share Basic $ 0.65 $ 0.47 $ 0.47 $ 0.44 $ 0.61 $ 2.02 $ 2.47 Diluted 0.65 0.47 0.46 0.44 0.61 2.02 2.46 Cash dividends per common share Regular 0.25 0.25 0.25 0.25 0.25 1.00 0.96 Weighted average shares outstanding Basic 17,717,356 17,710,283 17,701,853 17,998,994 15,611,093 17,781,748 15,690,812 Diluted 17,751,805 17,732,428 17,728,300 18,050,071 15,670,047 17,815,380 15,756,093 Performance ratios Return on average assets 1.54 % 1.11 % 1.15 % 1.16 % 1.71 % 1.24 % 1.75 % Return on average common equity 10.82 % 7.83 % 7.97 % 7.49 % 11.08 % 8.54 % 11.54 % Return on average tangible common equity(1) 15.96 % 11.62 % 11.91 % 11.12 % 15.33 % 12.68 % 16.09 % (1) A non-GAAP financial measure defined as net income divided by average stockholders' equity less average goodwill and other intangible assets
CONDENSED CONSOLIDATED QUARTERLY NONINTEREST INCOME AND EXPENSE (Unaudited)
First Community Bankshares Inc.
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#2972 Ranked by Stock Gains
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Industry
Commercial Banking
Sector
Finance and Insurance
Tags
Finance, Regional Banks, Finance and Insurance, Commercial Banking