David D. Brown, the Chief Financial Officer of First Community (NASDAQ:) Bankshares Inc. (NASDAQ:FCBC), recently executed several stock transactions involving the company’s common stock. On November 11 and 12, Brown sold a total of 4,350 shares, generating proceeds of approximately $208,027. The shares were sold at prices ranging from $47.25 to $48.50.
In addition to the sales, Brown exercised stock options on both days, acquiring a total of 3,000 shares at an exercise price of $33 per share, totaling $99,000. Following these transactions, Brown holds 12,676 shares directly.
These transactions reflect a mix of selling and exercising stock options, a common practice among executives to manage their equity holdings.
In other recent news, First Community Bankshares reported a decrease in Q3 earnings for 2024, with a net income of $13.03 million, marking an 11% drop from the same quarter in 2023. However, the net income for the nine months ending September 2024 stood at $38.56 million, a 6.42% increase from the same period in 2023. The bank also reported a reduction in net interest income, a slight uptick in non-performing loans, and an increase in noninterest income and expense.
In addition, First Community Bankshares has renewed employment agreements with its top executive officers, including the CEO, President, CFO, COO, and Chief Administrative Officer. The new contracts span an initial three-year period ending December 31, 2027, with automatic annual renewals extending the term for an additional three years. In case of termination without Cause or resignation for Good Reason not related to a Change of Control, executives will receive eighteen months of base salary continuation and health benefits.
These are among the recent developments at First Community Bankshares, which also includes its support for customers affected by Hurricane Helene and the company’s tradition of declaring a quarterly cash dividend of $0.31 per common share. The balance sheet reflected a decrease in loans by 4.98% from December 31, 2023, and securities available for sale dropped by 40.68%, while cash and cash equivalents increased by 170.86%.
InvestingPro Insights
First Community Bankshares Inc. (NASDAQ:FCBC) has been demonstrating strong financial performance, which provides context for CFO David D. Brown’s recent stock transactions. According to InvestingPro data, the company’s market capitalization stands at $858.03 million, with a P/E ratio of 17.12, indicating a reasonable valuation relative to earnings.
The company’s financial health is further underscored by two key InvestingPro Tips. Firstly, FCBC has maintained dividend payments for an impressive 31 consecutive years, showcasing its commitment to shareholder returns. This long-standing dividend policy aligns with Brown’s decision to exercise options and retain a significant portion of his shares. Secondly, FCBC has experienced a strong return over the last three months, with InvestingPro data showing a 18.72% price total return in that period.
These insights suggest that Brown’s transactions may be part of a regular portfolio management strategy rather than a reflection of the company’s prospects. The stock’s recent performance, with a 36.77% price total return over the past six months, further supports this view.
For investors seeking a deeper understanding of FCBC’s financial position, InvestingPro offers 8 additional tips that could provide valuable insights into the company’s potential. These tips, along with real-time metrics, can help in making more informed investment decisions.
David D. Brown, the Chief Financial Officer of First Community Bankshares Inc. (NASDAQ:FCBC), recently executed several stock transactions involving the company’s common stock. On November 11 and 12, Brown sold a total of 4,350 shares, generating proceeds of approximately $208,027. The shares were sold at prices ranging from $47.25 to $48.50.
In addition to the sales, Brown exercised stock options on both days, acquiring a total of 3,000 shares at an exercise price of $33 per share, totaling $99,000. Following these transactions, Brown holds 12,676 shares directly.
These transactions reflect a mix of selling and exercising stock options, a common practice among executives to manage their equity holdings.
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