BLUEFIELD, Va., Oct. 28, 2025 (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 September 30, 2025. The Company reported net income of $12.27 million, or $0.67 per diluted common share, for the quarter ended September 30, 2025. Net income for the nine months ended September 30, 2025, was $36.33 million or $1.97 per diluted common share.
The Company also declared a quarterly cash dividend to common shareholders of thirty-one cents, $0.31, per common share. The quarterly dividend is payable to common shareholders of record on November 14, 2025, and is expected to be paid on November 28, 2025. This year marks the 40th consecutive year of regular dividends to common shareholders and the prior year was the 15th consecutive year of regular dividend increases.
Third Quarter 2025 Highlights
Income Statement
- Net income of $12.27 million for the third quarter of 2025, was a decrease of $768 thousand, or 5.89%, from the same quarter of 2024. Net income of $36.33 million for the first nine months of 2025, was a decrease of $2.24 million, or 5.80%, from the same period of 2024.
- When adjusted for merger and non-recurring expenses, net income of $12.90 million was an increase of $495 thousand, or 4.00% from the third quarter of 2024.
- Net interest margin for the third quarter of 2025 remained strong at 4.43% and was an increase of 2 basis points over the same quarter of 2024. The yield on earning assets decreased 10 basis points, or 1.94%, from the same period of 2024 and is primarily attributable to a decrease in average loan balance and interest income. The average balance of loans decreased $116.18 million, or 4.73%, with interest income decreasing $1.30 million, or 4.05%. The decrease in interest income on loans was somewhat offset by an increase in interest income on interest-bearing deposits with banks of $144 thousand, or 3.89%. Interest expense on interest-bearing liabilities decreased $896 thousand, which is primarily attributable to a decrease in the average balance of time deposits of $31.42 million, or 12.82%, as well as a decrease in total interest expense of $896 thousand, or 16.91%. Tax equivalent net interest income decreased $293 thousand, or 0.92%, compared to the same quarter of 2024.
- Net interest income after provision for loan losses increased $1.06 million, or 3.52%, compared to the same quarter of 2024. The increase is attributable to a reduction in the allowance for loan losses driven by a $84.78 million loan balance reduction from the December 31, 2024, balance of $2.42 billion.
- Noninterest income increased approximately $437 thousand, or 4.18%, when compared to the same quarter of 2024. The increase is attributable to an increase in service charges on deposits of $859 thousand, or 23.46%, an increase in wealth management fees of $300 thousand, or 28.01%, and a decrease in other operating income of $872 thousand, or 43.12%. Noninterest expense increased $2.10 million, or 8.69%, when compared to the same period of 2024. The increase is attributable to increases in salaries and benefits of $1.22 million, or 9.31%, service fees of $267 thousand, or 10.86%, and merger expense of $787 thousand. The merger expense is related to the forthcoming merger with Hometown Bank, with an anticipated completion date of January 2026.
- Annualized return on average assets ("ROA") was 1.53% for the third quarter of 2025 compared to 1.60% for the same period of 2024. ROA for the nine months ended September 30, 2025, was 1.52% compared to 1.60% for the same period of 2024. Annualized return on average common equity ("ROE") was 9.58% for the third quarter of 2025 compared to 10.04% for the same period of 2024. ROE was 9.64% for the nine months ended September 30, 2025, compared to 10.08% for the same period of 2024. Additionally, return on average tangible common equity continues to remain strong at 13.82% for the third quarter of 2025.
Balance Sheet and Asset Quality
- Consolidated assets totaled $3.19 billion on September 30, 2025.
- Consolidated loan balances decreased $84.78 million, or 3.51%, and securities available for sale decreased $38.53 million, or 22.69%, from December 31, 2024. Deposits decreased $60.65 million, or 2.25%, which was due to a decrease in interest and noninterest-bearing demand deposits and declining higher-rate time deposits. Stockholder equity decreased $15.67 million, or 2.98%, primarily due to the payment of a special cash dividend in the first quarter of 2025. The net effect of these balance sheet changes resulted in an increase in cash and cash equivalents of $50.25 million, or 13.31%.
- The Company's average loan-to-deposits ratio of 89.38%, on September 30, 2025, continues to represent a stable utilization of deposit funding.
- The Company did not repurchase any common shares during the third quarter of 2025. However, 50,338 shares have been repurchased in 2025 at an aggregate cost of $1.85 million. In comparison, during the third quarter of 2024, the Company purchased 12,854 common shares for $469 thousand, contributing to a total of 257,294 shares repurchased in the first nine months of 2024 at a total cost of $8.72 million.
- Total non-performing assets as of September 30, 2025, were $16.90 million, compared with $20.54 million as of December 31, 2024, and $20.28 million as of September 30, 2024. The Company has realized a declining trend in non-performing assets since December 31, 2024.
- Non-performing loans to total loans decreased to 0.71%; a 0.11% reduction when compared with the same quarter of 2024. The Company experienced net charge-offs for the third quarter of 2025 of $1.42 million, or 0.24% of annualized average loans, compared to net charge-offs of $1.13 million, or 0.18%, of annualized average loans for the same period in 2024.
- The allowance for credit losses to total loans was 1.36% on September 30, 2025, compared to 1.44% on December 31, 2024, and 1.44% on September 30, 2024.
- Book value per share on September 30, 2025, was $ 27.89, a decrease of $0.84 from year-end 2024. The decrease is primarily attributable to the payment of the special cash dividend in the first quarter of 2025 of $2.07 per share totaling approximately $37.93 million.
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%. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to that comparable GAAP financial measure can be found in the attached tables to this press release. 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 52 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of September 30, 2025. First Community Bank offers wealth management and investment advice and services through its Trust Division and through its wholly owned subsidiary, First Community Wealth Management, which collectively managed and administered $1.75 billion in combined assets as of September 30, 2025. The Company reported consolidated assets of $3.19 billion as of September 30, 2025. 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; changes in banking laws and regulations; the degree of competition by traditional and non-traditional competitors; the impact of natural disasters, extreme weather events, military conflict, terrorism or other geopolitical events; 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 | Nine Months Ended | |||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | |||||||||||||||||||||||
| (Amounts in thousands, except share and per share data) | 2025 | 2025 | 2025 | 2024 | 2024 | 2025 | 2024 | |||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 30,805 | $ | 30,637 | $ | 30,669 | $ | 31,637 | $ | 32,120 | $ | 92,111 | $ | 98,234 | ||||||||||||||
| Interest on securities | 1,050 | 1,029 | 1,238 | 1,447 | 1,070 | 3,317 | 3,979 | |||||||||||||||||||||
| Interest on deposits in banks | 3,844 | 3,722 | 3,262 | 3,348 | 3,702 | 10,828 | 7,497 | |||||||||||||||||||||
| Total interest income | 35,699 | 35,388 | 35,169 | 36,432 | 36,892 | 106,256 | 109,710 | |||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||||
| Interest on deposits | 4,402 | 4,731 | 4,871 | 5,099 | 5,298 | 14,004 | 14,540 | |||||||||||||||||||||
| Interest on borrowings | - | - | - | - | - | - | 35 | |||||||||||||||||||||
| Total interest expense | 4,402 | 4,731 | 4,871 | 5,099 | 5,298 | 14,004 | 14,575 | |||||||||||||||||||||
| Net interest income | 31,297 | 30,657 | 30,298 | 31,333 | 31,594 | 92,252 | 95,135 | |||||||||||||||||||||
| Provision for credit losses | - | (285 | ) | 321 | 1,082 | 1,360 | 36 | 2,515 | ||||||||||||||||||||
| Net interest income after provision | 31,297 | 30,942 | 29,977 | 30,251 | 30,234 | 92,216 | 92,620 | |||||||||||||||||||||
| Noninterest income | 10,889 | 10,340 | 10,229 | 10,337 | 10,452 | 31,458 | 29,053 | |||||||||||||||||||||
| Noninterest expense | 26,279 | 25,455 | 24,944 | 24,107 | 24,177 | 76,679 | 72,460 | |||||||||||||||||||||
| Income before income taxes | 15,907 | 15,827 | 15,262 | 16,481 | 16,509 | 46,995 | 49,213 | |||||||||||||||||||||
| Income tax expense | 3,641 | 3,581 | 3,444 | 3,441 | 3,476 | 10,666 | 10,649 | |||||||||||||||||||||
| Net income | $ | 12,266 | $ | 12,246 | $ | 11,818 | $ | 13,040 | $ | 13,033 | $ | 36,329 | $ | 38,564 | ||||||||||||||
| Earnings per common share | ||||||||||||||||||||||||||||
| Basic | $ | 0.67 | $ | 0.67 | $ | 0.64 | $ | 0.71 | $ | 0.71 | $ | 1.98 | $ | 2.10 | ||||||||||||||
| Diluted | $ | 0.67 | $ | 0.67 | $ | 0.64 | $ | 0.71 | $ | 0.71 | $ | 1.97 | $ | 2.09 | ||||||||||||||
| Cash dividends per common share | ||||||||||||||||||||||||||||
| Regular | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.93 | 0.89 | |||||||||||||||||||||
| Special cash dividend | - | - | 2.07 | - | - | 2.07 | - | |||||||||||||||||||||
| Weighted average shares outstanding | ||||||||||||||||||||||||||||
| Basic | 18,314,865 | 18,295,465 | 18,324,760 | 18,299,612 | 18,279,612 | 18,311,661 | 18,366,249 | |||||||||||||||||||||
| Diluted | 18,400,289 | 18,400,793 | 18,451,321 | 18,418,441 | 18,371,907 | 18,417,066 | 18,432,023 | |||||||||||||||||||||
| Performance ratios | ||||||||||||||||||||||||||||
| Return on average assets | 1.53 | % | 1.53 | % | 1.49 | % | 1.60 | % | 1.60 | % | 1.52 | % | 1.60 | % | ||||||||||||||
| Return on average common equity | 9.58 | % | 9.84 | % | 9.49 | % | 9.89 | % | 10.04 | % | 9.64 | % | 10.08 | % | ||||||||||||||
| Return on average tangible common equity(1) | 13.82 | % | 14.32 | % | 13.79 | % | 14.12 | % | 14.46 | % | 13.97 | % | 14.61 | % | ||||||||||||||
_____________
| (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) | ||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | |||||||||||||||||||||||
| (Amounts in thousands) | 2025 | 2025 | 2025 | 2024 | 2024 | 2025 | 2024 | |||||||||||||||||||||
| Noninterest income | ||||||||||||||||||||||||||||
| Wealth management | $ | 1,371 | $ | 1,222 | $ | 1,162 | $ | 1,251 | $ | 1,071 | $ | 3,755 | $ | 3,234 | ||||||||||||||
| Service charges on deposits | 4,520 | 4,120 | 3,836 | 3,613 | 3,661 | 12,476 | 10,399 | |||||||||||||||||||||
| Other service charges and fees | 3,847 | 3,791 | 3,340 | 3,575 | 3,697 | 10,978 | 10,817 | |||||||||||||||||||||
| Other operating income | 1,151 | 1,207 | 1,891 | 1,898 | 2,023 | 4,249 | 4,603 | |||||||||||||||||||||
| Total noninterest income | $ | 10,889 | $ | 10,340 | $ | 10,229 | $ | 10,337 | $ | 10,452 | $ | 31,458 | $ | 29,053 | ||||||||||||||
| Noninterest expense | ||||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 14,351 | $ | 14,349 | $ | 13,335 | $ | 13,501 | $ | 13,129 | $ | 42,035 | $ | 38,201 | ||||||||||||||
| Occupancy expense | 1,508 | 1,290 | 1,576 | 1,329 | 1,270 | 4,374 | 3,957 | |||||||||||||||||||||
| Furniture and equipment expense | 1,502 | 1,587 | 1,575 | 1,562 | 1,574 | 4,664 | 4,806 | |||||||||||||||||||||
| Service fees | 2,728 | 2,475 | 2,484 | 2,305 | 2,461 | 7,687 | 7,337 | |||||||||||||||||||||
| Advertising and public relations | 939 | 1,154 | 1,055 | 1,165 | 967 | 3,148 | 2,696 | |||||||||||||||||||||
| Professional fees | 293 | 360 | 372 | 295 | 221 | 1,025 | 923 | |||||||||||||||||||||
| Amortization of intangibles | 433 | 526 | 524 | 535 | 536 | 1,483 | 1,596 | |||||||||||||||||||||
| FDIC premiums and assessments | 362 | 361 | 362 | 365 | 365 | 1,085 | 1,098 | |||||||||||||||||||||
| Merger expense | 787 | - | - | - | - | 787 | - | |||||||||||||||||||||
| Litigation expense | - | - | - | - | - | - | 1,800 | |||||||||||||||||||||
| Other operating expense | 3,376 | 3,353 | 3,661 | 3,050 | 3,654 | 10,391 | 10,046 | |||||||||||||||||||||
| Total noninterest expense | $ | 26,279 | $ | 25,455 | $ | 24,944 | $ | 24,107 | $ | 24,177 | $ | 76,679 | $ | 72,460 | ||||||||||||||
| RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited) | ||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | |||||||||||||||||||||||
| (Amounts in thousands, except per share data) | 2025 | 2025 | 2025 | 2024 | 2024 | 2025 | 2024 | |||||||||||||||||||||
| Adjusted Net Income for diluted earnings per share | $ | 12,266 | $ | 12,246 | $ | 11,818 | $ | 13,040 | $ | 13,033 | $ | 36,329 | $ | 38,564 | ||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||||
| Merger expense | 787 | - | - | - | - | 787 | - | |||||||||||||||||||||
| Litigation expense | - | - | - | - | - | - | 1,800 | |||||||||||||||||||||
| Other items(1) | - | - | - | - | (825 | ) | - | (825 | ) | |||||||||||||||||||
| Total adjustments | 787 | - | - | - | (825 | ) | 787 | 975 | ||||||||||||||||||||
| Tax effect | 152 | - | - | - | (198 | ) | 152 | 234 | ||||||||||||||||||||
| Adjusted earnings, non-GAAP | $ | 12,901 | $ | 12,246 | $ | 11,818 | $ | 13,040 | $ | 12,406 | $ | 36,964 | $ | 39,305 | ||||||||||||||
| Adjusted diluted earnings per common share, non-GAAP | $ | 0.70 | $ | 0.67 | $ | 0.64 | $ | 0.71 | $ | 0.68 | $ | 2.01 | $ | 2.13 | ||||||||||||||
| Performance ratios, non-GAAP | ||||||||||||||||||||||||||||
| Adjusted return on average assets | 1.60 | % | 1.53 | % | 1.49 | % | 1.60 | % | 1.53 | % | 1.54 | % | 1.63 | % | ||||||||||||||
| Adjusted return on average common equity | 10.08 | % | 9.84 | % | 9.49 | % | 9.89 | % | 9.56 | % | 9.81 | % | 10.27 | % | ||||||||||||||
| Adjusted return on average tangible common equity (2) | 14.53 | % | 14.32 | % | 13.79 | % | 14.12 | % | 13.77 | % | 14.21 | % | 14.89 | % | ||||||||||||||
________________
| (1 | ) | Includes other non-recurring income and expense items. |
| (2 | ) | A non-GAAP financial measure defined as adjusted earnings divided by average stockholders' equity less average goodwill and other intangible assets. |
| AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended September 30, | ||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Average | Average Yield/ | Average | Average Yield/ | |||||||||||||||||||||
| (Amounts in thousands) | Balance | Interest(1) | Rate(1) | Balance | Interest(1) | Rate(1) | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Earning assets | ||||||||||||||||||||||||
| Loans(2)(3) | $ | 2,339,631 | $ | 30,897 | 5.24 | % | $ | 2,455,807 | $ | 32,201 | 5.22 | % | ||||||||||||
| Securities available for sale | 130,187 | 1,070 | 3.26 | % | 133,654 | 1,099 | 3.27 | % | ||||||||||||||||
| Interest-bearing deposits | 343,541 | 3,845 | 4.44 | % | 270,440 | 3,701 | 5.44 | % | ||||||||||||||||
| Total earning assets | 2,813,359 | 35,812 | 5.05 | % | 2,859,901 | 37,001 | 5.15 | % | ||||||||||||||||
| Other assets | 377,244 | 371,358 | ||||||||||||||||||||||
| Total assets | $ | 3,190,603 | $ | 3,231,259 | ||||||||||||||||||||
| Liabilities and stockholders' equity | ||||||||||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||||||||||
| Demand deposits | $ | 657,223 | $ | 196 | 0.12 | % | $ | 656,780 | $ | 234 | 0.14 | % | ||||||||||||
| Savings deposits | 895,925 | 3,225 | 1.43 | % | 886,766 | 3,735 | 1.68 | % | ||||||||||||||||
| Time deposits | 213,601 | 981 | 1.82 | % | 245,020 | 1,329 | 2.16 | % | ||||||||||||||||
| Total interest-bearing deposits | 1,766,749 | 4,402 | 0.99 | % | 1,788,566 | 5,298 | 1.18 | % | ||||||||||||||||
| Borrowings | ||||||||||||||||||||||||
| Federal funds purchased | - | - | - | - | - | 0.00 | % | |||||||||||||||||
| Retail repurchase agreements | 1,159 | - | 0.06 | % | 1,054 | - | 0.05 | % | ||||||||||||||||
| Total borrowings | 1,159 | - | 0.06 | % | 1,054 | - | 0.05 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,767,908 | 4,402 | 0.99 | % | 1,789,620 | 5,298 | 1.18 | % | ||||||||||||||||
| Noninterest-bearing demand deposits | 868,489 | 877,472 | ||||||||||||||||||||||
| Other liabilities | 46,321 | 47,892 | ||||||||||||||||||||||
| Total liabilities | 2,682,718 | 2,714,984 | ||||||||||||||||||||||
| Stockholders' equity | 507,885 | 516,275 | ||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 3,190,603 | $ | 3,231,259 | ||||||||||||||||||||
| Net interest income, FTE(1) | $ | 31,410 | $ | 31,703 | ||||||||||||||||||||
| Net interest rate spread | 4.06 | % | 3.97 | % | ||||||||||||||||||||
| Net interest margin, FTE(1) | 4.43 | % | 4.41 | % | ||||||||||||||||||||
________________
| (1 | ) | Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%. |
| (2 | ) | Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual. |
| (3 | ) | Interest on loans includes non-cash and accelerated purchase accounting accretion of $405 thousand and $592 thousand for the three months ended September 30, 2025 and 2024, respectively. |
| AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited) | ||||||||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Average | Average Yield/ | Average | Average Yield/ | |||||||||||||||||||||
| (Amounts in thousands) | Balance | Interest(1) | Rate(1) | Balance | Interest(1) | Rate(1) | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Earning assets | ||||||||||||||||||||||||
| Loans(2)(3) | $ | 2,366,151 | $ | 92,385 | 5.22 | % | $ | 2,501,209 | $ | 98,479 | 5.26 | % | ||||||||||||
| Securities available for sale | 135,900 | 3,384 | 3.33 | % | 172,331 | 4,073 | 3.16 | % | ||||||||||||||||
| Interest-bearing deposits | 324,625 | 10,828 | 4.46 | % | 182,773 | 7,499 | 5.48 | % | ||||||||||||||||
| Total earning assets | 2,826,676 | 106,597 | 5.04 | % | 2,856,313 | 110,051 | 5.15 | % | ||||||||||||||||
| Other assets | 376,317 | 372,663 | ||||||||||||||||||||||
| Total assets | $ | 3,202,993 | $ | 3,228,976 | ||||||||||||||||||||
| Liabilities and stockholders' equity | ||||||||||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||||||||||
| Demand deposits | $ | 657,916 | $ | 554 | 0.11 | % | $ | 662,433 | $ | 570 | 0.11 | % | ||||||||||||
| Savings deposits | 894,049 | 9,857 | 1.47 | % | 875,797 | 10,730 | 1.64 | % | ||||||||||||||||
| Time deposits | 226,690 | 3,593 | 2.12 | % | 247,088 | 3,240 | 1.75 | % | ||||||||||||||||
| Total interest-bearing deposits | 1,778,655 | 14,004 | 1.05 | % | 1,785,318 | 14,540 | 1.09 | % | ||||||||||||||||
| Borrowings | ||||||||||||||||||||||||
| Federal funds purchased | - | - | - | 839 | 35 | 5.52 | % | |||||||||||||||||
| Retail repurchase agreements | 1,174 | - | 0.06 | % | 1,061 | - | 0.05 | % | ||||||||||||||||
| Total borrowings | 1,174 | - | 0.06 | % | 1,900 | 35 | 2.46 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,779,829 | 14,004 | 1.05 | % | 1,787,218 | 14,575 | 1.09 | % | ||||||||||||||||
| Noninterest-bearing demand deposits | 868,639 | 883,013 | ||||||||||||||||||||||
| Other liabilities | 50,547 | 47,772 | ||||||||||||||||||||||
| Total liabilities | 2,699,015 | 2,718,003 | ||||||||||||||||||||||
| Stockholders' equity | 503,978 | 510,973 | ||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 3,202,993 | $ | 3,228,976 | ||||||||||||||||||||
| Net interest income, FTE(1) | $ | 92,593 | $ | 95,476 | ||||||||||||||||||||
| Net interest rate spread | 3.99 | % | 4.06 | % | ||||||||||||||||||||
| Net interest margin, FTE(1) | 4.38 | % | 4.46 | % | ||||||||||||||||||||
__________________
| (1 | ) | Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%. |
| (2 | ) | Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual. |
| (3 | ) | Interest on loans includes non-cash and accelerated purchase accounting accretion of $1.39 million and $2.04 million for the nine months ended September 30, 2025 and 2024, respectively. |
| CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited) | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| (Amounts in thousands, except per share data) | 2025 | 2025 | 2025 | 2024 | 2024 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 427,705 | $ | 395,057 | $ | 414,682 | $ | 377,454 | $ | 315,338 | ||||||||||
| Debt securities available for sale, at fair value | 131,314 | 132,535 | 129,659 | 169,849 | 166,669 | |||||||||||||||
| Loans held for investment, net of unearned income | 2,331,305 | 2,353,277 | 2,382,699 | 2,416,089 | 2,444,113 | |||||||||||||||
| Allowance for credit losses | (31,597 | ) | (33,020 | ) | (33,784 | ) | (34,825 | ) | (35,118 | ) | ||||||||||
| Loans held for investment, net | 2,299,708 | 2,320,257 | 2,348,915 | 2,381,264 | 2,408,995 | |||||||||||||||
| Premises and equipment, net | 47,522 | 48,023 | 48,780 | 48,735 | 49,654 | |||||||||||||||
| Other real estate owned | 264 | 455 | 298 | 521 | 346 | |||||||||||||||
| Interest receivable | 9,121 | 8,787 | 9,306 | 9,207 | 9,883 | |||||||||||||||
| Goodwill | 143,946 | 143,946 | 143,946 | 143,946 | 143,946 | |||||||||||||||
| Other intangible assets | 11,531 | 11,964 | 12,490 | 13,014 | 13,550 | |||||||||||||||
| Other assets | 118,502 | 119,990 | 117,697 | 117,226 | 115,980 | |||||||||||||||
| Total assets | $ | 3,189,613 | $ | 3,181,014 | $ | 3,225,773 | $ | 3,261,216 | $ | 3,224,361 | ||||||||||
| Liabilities | ||||||||||||||||||||
| Deposits | ||||||||||||||||||||
| Noninterest-bearing | $ | 865,554 | $ | 873,677 | $ | 893,794 | $ | 883,499 | $ | 869,723 | ||||||||||
| Interest-bearing | 1,765,039 | 1,761,687 | 1,790,683 | 1,807,748 | 1,789,530 | |||||||||||||||
| Total deposits | 2,630,593 | 2,635,364 | 2,684,477 | 2,691,247 | 2,659,253 | |||||||||||||||
| Securities sold under agreements to repurchase | 1,429 | 1,016 | 908 | 906 | 954 | |||||||||||||||
| Interest, taxes, and other liabilities | 46,866 | 41,805 | 43,971 | 42,671 | 43,460 | |||||||||||||||
| Total liabilities | 2,678,888 | 2,678,185 | 2,729,356 | 2,734,824 | 2,703,667 | |||||||||||||||
| Stockholders' equity | ||||||||||||||||||||
| Common stock | 18,315 | 18,311 | 18,327 | 18,322 | 18,291 | |||||||||||||||
| Additional paid-in capital | 169,569 | 169,358 | 169,867 | 169,752 | 168,691 | |||||||||||||||
| Retained earnings | 330,895 | 324,307 | 317,728 | 349,489 | 342,121 | |||||||||||||||
| Accumulated other comprehensive loss | (8,054 | ) | (9,147 | ) | (9,505 | ) | (11,171 | ) | (8,409 | ) | ||||||||||
| Total stockholders' equity | 510,725 | 502,829 | 496,417 | 526,392 | 520,694 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 3,189,613 | $ | 3,181,014 | $ | 3,225,773 | $ | 3,261,216 | $ | 3,224,361 | ||||||||||
| Shares outstanding at period-end | 18,314,905 | 18,311,232 | 18,326,657 | 18,321,795 | 18,290,938 | |||||||||||||||
| Book value per common share | $ | 27.89 | $ | 27.46 | $ | 27.09 | $ | 28.73 | $ | 28.47 | ||||||||||
| Tangible book value per common share(1) | 19.40 | 18.95 | 18.55 | 20.16 | 19.86 | |||||||||||||||
___________________
| (1 | ) | A non-GAAP financial measure defined as stockholders' equity less goodwill and other intangible assets, divided by shares outstanding. |
| SELECTED CREDIT QUALITY INFORMATION (Unaudited) | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| (Amounts in thousands) | 2025 | 2025 | 2025 | 2024 | 2024 | |||||||||||||||
| Allowance for Credit Losses | ||||||||||||||||||||
| Balance at beginning of period: | ||||||||||||||||||||
| Allowance for credit losses - loans | $ | 33,020 | $ | 33,784 | $ | 34,825 | $ | 35,118 | 34,885 | |||||||||||
| Allowance for credit losses - loan commitments | 319 | 312 | 341 | 441 | 441 | |||||||||||||||
| Total allowance for credit losses beginning of period | 33,339 | 34,096 | 35,166 | 35,559 | 35,326 | |||||||||||||||
| Provision for credit losses: | ||||||||||||||||||||
| (Recovery of) provision for credit losses - loans | - | (292 | ) | 350 | 1,182 | 1,360 | ||||||||||||||
| (Recovery of) provision for credit losses - loan commitments | - | 7 | (29 | ) | (100 | ) | - | |||||||||||||
| Total provision for credit losses - loans and loan commitments | - | (285 | ) | 321 | 1,082 | 1,360 | ||||||||||||||
| Charge-offs | (2,015 | ) | (1,509 | ) | (1,998 | ) | (2,005 | ) | (1,799 | ) | ||||||||||
| Recoveries | 592 | 1,037 | 607 | 530 | 672 | |||||||||||||||
| Net charge-offs | (1,423 | ) | (472 | ) | (1,391 | ) | (1,475 | ) | (1,127 | ) | ||||||||||
| Balance at end of period: | ||||||||||||||||||||
| Allowance for credit losses - loans | 31,597 | 33,020 | 33,784 | 34,825 | 35,118 | |||||||||||||||
| Allowance for credit losses - loan commitments | 319 | 319 | 312 | 341 | 441 | |||||||||||||||
| Ending balance | $ | 31,916 | $ | 33,339 | $ | 34,096 | $ | 35,166 | $ | 35,559 | ||||||||||
| Nonperforming Assets | ||||||||||||||||||||
| Nonaccrual loans | $ | 16,514 | $ | 18,084 | $ | 19,974 | $ | 19,869 | $ | 19,754 | ||||||||||
| Accruing loans past due 90 days or more | 125 | 568 | 117 | 149 | 176 | |||||||||||||||
| Modified loans past due 90 days or more not included in nonaccrual | - | - | - | - | - | |||||||||||||||
| Total nonperforming loans | 16,639 | 18,652 | 20,091 | 20,018 | 19,930 | |||||||||||||||
| OREO | 264 | 455 | 298 | 521 | 346 | |||||||||||||||
| Total nonperforming assets | $ | 16,903 | $ | 19,107 | $ | 20,389 | $ | 20,539 | $ | 20,276 | ||||||||||
| Additional Information | ||||||||||||||||||||
| Total modified loans | $ | 2,291 | $ | 2,129 | $ | 2,124 | $ | 2,260 | $ | 2,320 | ||||||||||
| Asset Quality Ratios | ||||||||||||||||||||
| Nonperforming loans to total loans | 0.71 | % | 0.79 | % | 0.84 | % | 0.83 | % | 0.82 | % | ||||||||||
| Nonperforming assets to total assets | 0.53 | % | 0.60 | % | 0.63 | % | 0.63 | % | 0.63 | % | ||||||||||
| Allowance for credit losses to nonperforming loans | 189.90 | % | 177.03 | % | 168.15 | % | 173.97 | % | 176.21 | % | ||||||||||
| Allowance for credit losses to total loans | 1.36 | % | 1.40 | % | 1.42 | % | 1.44 | % | 1.44 | % | ||||||||||
| Annualized net charge-offs to average loans | 0.24 | % | 0.08 | % | 0.24 | % | 0.24 | % | 0.18 | % | ||||||||||
FOR MORE INFORMATION, CONTACT:
David D. Brown
(276) 326-9000
