First Community (FCCO) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 rose to $3.9 million ($0.50 diluted EPS), up from $1.8 million ($0.23 EPS) in Q3 2023 and $3.3 million in Q2 2024, driven by higher net interest income, lower provision for credit losses, and increased non-interest income.

• For the nine months ended September 30, 2024, net income increased to $9.7 million ($1.26 diluted EPS) from $8.5 million ($1.12 EPS) year-over-year.

• Board approved a $0.15 per share cash dividend for Q3 2024, marking the 91st consecutive quarter of dividends.

• Share repurchase plan of up to $7.1 million (5% of equity) approved, expiring May 2025, with no shares repurchased as of September 30, 2024.

• The company closed a banking office in Augusta, Georgia, in June 2024, estimating annual cost savings of $327,000.

Financial highlights

• Net interest income for Q3 2024 was $13.4 million, up from $12.1 million in Q3 2023 and $12.7 million in Q2 2024; net interest margin was 2.96% in Q3 2024.

• Non-interest income was $3.6 million in Q3 2024, up from $1.9 million in Q3 2023.

• Non-interest expense rose to $12.0 million in Q3 2024, mainly due to higher salaries, benefits, and FDIC assessments.

• Total loans grew by $7.5 million in Q3 2024 (2.5% annualized), and $62.6 million YTD (7.4% annualized).

• Total deposits increased by $39.5 million in Q3 2024 (9.8% annualized), and $133.1 million YTD (11.8% annualized).

Outlook and guidance

• Management expects to remain well-capitalized for at least the next 12 months and believes liquidity and capital are sufficient to support operations.

• The company anticipates continued focus on growing core deposits, managing funding costs, and relationship-based growth amid a changing interest rate environment.

• Forward-looking statements highlight risks from economic conditions, interest rates, competition, and regulatory changes.