First Citizens notes sharp jump in net income

BLUEFIELD, VA — First Community Bankshares Inc. (NASDAQ: FCBC) announced this week that its second quarter income was up nearly 30% over the same period a year ago, and that its six-month results for the year show an 18% growth over the previous year.

The bank also declared a 31-cent quarterly dividend on its common shares, payable on Aug. 23 to stockholders of record on Aug. 9. This is the 39th consecutive year the bank has paid regular dividends to its shareholders, bank officials said.

The company reported net income of $12.69 million, or 71 cents per share, for the quarter ending June 30, an increase of $2.87 million over the second quarter in 2023.

Net income for the six months ending June 30 was $25.53 million, or $1.42 per common share. That was up $3.94 million over the first six months of 2023.

Other highlights of the bank’s second quarter statement include:

– The provision for credit losses decreased $3.96 million, or 96.49%, from the same quarter of 2023. The second quarter of 2023 included $1.61 million of Day 2 provision associated with the Surrey Bancorp acquisition. The majority of the difference is due to a much smaller required credit loss provision as the loan portfolio has experienced a decline of $147.81 million from the same period of 2023.

-- Net interest income decreased $950,000 compared to the same quarter in 2023, primarily due to increases in rates paid on interest-bearing deposits.

-- Net interest margin of 4.51% was an increase of 3 basis points over the same quarter of 2023. The yield on earning assets increased 45 basis points from the same period of 2023 and is attributable to an increase in interest income resulting from an increase in yield and an increase in average balance. There was an increase in yield for both loans and securities available for sale. The average balance for interest-bearing deposits with banks increased $147.11 million over the same period of 2023. The yield on interest-bearing liabilities increased 67 basis points when compared with the same period of 2023 and is primarily attributable to increased rates on interest-bearing deposit liabilities.

-- The bank repurchased 155,044 common shares during the second quarter of 2024 at a cost of $5.28 million. The company repurchased 244,440 common shares during the first six months of 2024 at a cost of $8.25 million.

Based in Bluefield, First Community Bankshares Inc. provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operates 53 branch banking locations in Mount Airy and other locations in North Carolina, as well as in Virginia, West Virginia, and Tennessee.