First Community Bankshares Posts Strong Q1 2025 Financial Results and Steady Growth

First Community Bankshares Sees Strong Financial Performance in Q1 2025

First Community Corporation, the parent company of First Community Bank, showcases robust financial health in its first quarter of 2025. The bank reports a net income of $3.997 million, reflecting a notable increase from the $2.597 million recorded during the same period last year. Although this figure shows a slight decline from the $4.232 million reported in the fourth quarter of 2024, it highlights the bank's steady growth trajectory. The diluted earnings per share (EPS) also rise to $0.51, up from $0.34 a year ago, indicating a continued commitment to enhancing shareholder value.

The bank experiences significant growth in customer deposits, which reaches $1.726 billion as of March 31, 2025. Customer deposits, excluding brokered certificates of deposit (CDs), total $1.715 billion, marking an annualized growth rate of 12.1%, or an increase of $49.8 million. This influx of deposits supports the bank's lending activities, as evidenced by a total loan growth of $31.4 million, resulting in a 10.4% annualized growth rate. Additionally, the net interest margin sees an expansion of 13 basis points, climbing to 3.13%. These metrics underscore First Community's effective management strategies and its ability to capitalize on favorable market conditions.

Credit quality remains a strong point for First Community Bank, with non-performing assets at a mere 0.03% and past due loans at 0.14%. This solid performance in credit metrics reflects prudent lending practices and effective risk management. Furthermore, the bank's investment advisory segment produces $1.806 million in revenue, with assets under management totaling $892.8 million. The mortgage line of business also generates a respectable $759 thousand in fee revenue. In recognition of its ongoing success, the Board of Directors declares a cash dividend of $0.15 per common share, marking the 93rd consecutive quarter of dividends.

In addition to its financial results, First Community Bankshares maintains strong regulatory capital ratios, exceeding required minimums with a leverage ratio of 8.45%, a Tier I Risk Based ratio of 12.90%, and a Total Risk Based ratio of 13.99%. This solid capital position not only reinforces the bank's stability but also enhances its ability to support future growth initiatives.

Overall, First Community Bank’s solid performance in the first quarter of 2025 demonstrates its resilience and commitment to delivering value to its shareholders while maintaining a strategic focus on growth. The bank's focus on expanding deposits and maintaining credit quality positions it well for future opportunities within the banking sector.