BLUEFIELD, VA – First Community Bankshares, Inc. (NASDAQ: FCBC) reported net income for the quarter ending June 30 grew by nearly two-thirds over the same quarter a year ago, and the year-to-date earnings grew even more.
The company reported net income of $13.40 million, or 76 cents per common share, for the quarter, which was an increase of 30 cents per share, or 65.22%, over the same quarter of 2020. Net income for the six months ending June 30 was $28.01 million, or $1.59 per share, which represents a 76.67% increase in diluted earnings per share compared to the same period of 2020, when that figure stood at 90 cents per share.
The company also declared a quarterly cash dividend to common shareholders of 27 cents per common share, an increase of 8% over last quarter and last year. The quarterly dividend is payable to common shareholders of record on August 9 and is expected to be paid on or about August 23. This marks the 36th consecutive year of regular dividends to common shareholders.
– Net income for the quarter increased $5.17 million to $13.40 million compared to the same quarter of 2020. The increase includes the reversal of $2.23 million in allowance for credit losses for the second quarter of 2021. Net income for the six-month period increased $11.90 million compared to the same period of 2020. Similarly, for the six month period, a reversal of $6.23 million in the allowance for credit losses accounts for a large part of the increase in income over the same period in 2020. The decreases in credit loss provisioning are primarily due to significantly improved economic forecasts and GDP growth in the current year, and prior year provisioning driven by the pandemic.
– During the second quarter, the company repurchased 261,600 common shares for $7.98 million. Year-to-date the company has repurchased 449,300 common shares for $12.96 million.
– Annualized return on average equity increased to 12.55% compared to 7.97% from the same quarter of 2020, and return on average equity for the first six months increased to 13.24% compared to 7.73% from the same period last year.
– Annualized return on average assets increased to 1.70% compared to 1.15% from the same quarter of 2020, while year-to-date return on average assets increased to 1.82% compared to 1.15% for the same period of 2020.
– Non-interest income for the second quarter of 2021 increased $1.88 million, or 27.25%, compared to the prior year. Year-to-date non-interest income increased 13.17% to $16.37 million compared to last year. Both increases are largely attributable to the more vibrant state of local economies with increased customer activity compared with last spring.
– As of June 30 total COVID-19 loan deferrals stood at $4.02 million, down significantly from the peak of $436.11 million on June 30, 2020.
– The SBA had forgiven $48.27 million, or 79.15%, of the company’s first round Paycheck Protection Program loan balances through June 30. Current PPP loan balances at June 30 which include second-round originations, were $41.63 million.