BLUEFIELD, VA - First Community (NASDAQ:FCCO) Bankshares Inc. (NASDAQ:FCBC), a state commercial bank based in Virginia, announced today the renewal of employment agreements with its top executive officers. The new contracts, effective since January 1, 2024, were disclosed in a recent SEC filing.
The agreements involve William P. Stafford, II, the Chief Executive Officer; Gary R. Mills, President; David D. Brown, Chief Financial Officer; Jason R. Belcher, Chief Operating Officer; and Sarah W. Harmon, Chief Administrative Officer, General Counsel and Corporate Secretary. These contracts replace all previous employment agreements between the executives and the company.
Under the new terms, each executive's contract spans an initial three-year period ending December 31, 2027, with automatic annual renewals extending the term for an additional three years. The executives' base salaries will be subject to annual reviews, and they are eligible to participate in cash and equity incentive plans as determined by the company.
The filing outlines several termination scenarios, including automatic cessation upon death, terminations by the company for Cause or without Cause, terminations due to Disability, and voluntary resignations by the executive with thirty days' notice or for Good Reason.
In the event 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.
However, if such a termination or resignation occurs within thirty-six months following a Change of Control, the compensation and benefits extend for thirty-six months.
The agreements also include provisions to prevent golden parachute excise taxes under Section 4999 of the Internal Revenue Code and impose Loyalty Obligations, Non-Competition, and Non-Solicitation restrictions during and after employment.
In other recent news, First Community Bankshares reported a significant increase in its unaudited financial results for the second quarter of 2024.
The company announced a net income of $12.69 million, a 29.26% increase from the same quarter in the previous year. The company also declared a quarterly cash dividend of $0.31 per common share, continuing its 39-year tradition of regular dividends.
Key financial highlights include a significant reduction in the provision for credit losses and a recovery of provision for the allowance for unfunded commitments.
However, net interest income saw a decrease due to higher rates paid on interest-bearing deposits. Noninterest income and noninterest expense both saw modest increases.
The company also reported an improvement in annualized return on average assets and average common equity. On the balance sheet, consolidated assets totaled $3.23 billion as of June 30, 2024. These are some of the recent developments in the company's financial performance.
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