First Community Bankshares, Inc. Announces Record Second Quarter 2026 Results and Quarterly Cash Dividend

BLUEFIELD, Va., July 21, 2026 (GLOBE NEWSWIRE) -- First Community Bankshares, Inc. (NASDAQ:FCBC) (www.firstcommunitybank.com) (the "Company") today reported its unaudited results of operations and other financial information for the quarter ended June 30, 2026. The Company reported a record quarterly net income of $22.51 million, or $1.19 per diluted common share, for the quarter ended June 30, 2026. Net income for the six months ended June 30, 2026, was $34.54 million or $1.82 per diluted common share.

The Company also declared a quarterly cash dividend to common shareholders of thirty-three cents, $0.33, per common share, an increase of $0.02, or 6.45%, over last quarter. The quarterly dividend is payable to common shareholders of record on August 7, 2026, and is expected to be paid on August 21, 2026. This year marks the 41st consecutive year of regular dividends to common shareholders. 

Second Quarter 2026 Highlights

Income Statement

• Net income for the second quarter of 2026 reached a record $22.51 million, an increase of $7.87 million over the previous record of $14.64 million reported in the third quarter of 2023, and $10.27 million, or 83.84%, higher than net income of $12.25 million in the second quarter of 2025. Net income of $34.54 million for the first six months of 2026, was an increase of $10.48 million or 43.54%, from the same period in 2025.
• When adjusted for merger-related and other non-recurring items, net income for the quarter was $14.38 million, an increase of $2.14 million, or 17.47%, compared to the same period in 2025. The most significant non-recurring item in the second quarter was a $10.39 million pre-tax gain on the sale of the Company's stake in Bearing Insurance. For the first six months of 2026 adjusted net income totaled $28.05 million, an increase of $3.99 million, or 16.57%, from the same time period of 2025. In addition to the Bearing gain, the first six months of 2026 includes pre-tax merger-related costs of $2.31 million.
• Net interest margin remained strong at 4.38% in the second quarter of 2026, up one basis point from the second quarter of 2025. Net interest rate spread increased nine basis points to 4.06%, driving a $4.27 million, or 13.87%, increase in tax-equivalent net interest income. The improvement was primarily driven by an increase in the average balance of interest earnings assets and lower funding cost yields. Average earning assets increased $382.18 million, or 13.52%, contributing $4.27 million in additional interest income, while the yield of interest-bearing deposits declined 16 basis points.
• Net interest income after provision for loan losses increased $3.45 million, or 11.15%, compared to June 30, 2025. The increase was driven by an increase in average earning assets, a result of last quarter's acquisition of Hometown Bancshares.
• Noninterest income increased approximately $12.00 million, or 116.06%, when compared to the same quarter of 2025. The increase is attributable primarily to a gain of $10.38 million on the sale of the Company's portion of Bearing Insurance. Noninterest expense increased $2.11 million, or 8.29%, when compared to the same period of 2025. The increase is attributable mostly to increases in salaries and benefits of $778 thousand, or 5.42%, other operating expense of $627 thousand, or 18.70%, and service fees of $383 thousand, or 15.47%.
• Annualized return on average assets ("ROA") was 2.49% for the second quarter of 2026 compared to 1.53% for the same period of 2025. Annualized return on average common equity ("ROE") was 16.90% for the second quarter of 2026 compared to 9.84% for the same period of 2025.
• When adjusted for merger and non-recurring expenses, ROA was 1.59% for the second quarter of 2026 and ROE was 10.80%. Return on average tangible common equity continues to remain strong at 15.58% for the second quarter of 2026.
  
  
  
  

Balance Sheet and Asset Quality

• Consolidated assets totaled $3.61 billion at June 30, 2026.
• The Company's loan portfolio increased $145.00 million, or 6.26% from year-end 2025. Excluding the Hometown acquisition, the loan portfolio decreased approximately $26.05 million, or 1.13%. However, loan production for the second quarter of 2026 was $134.45 million, compared to $78.89 million for the same quarter in 2025, a 70.43% increase.
• The Company did not repurchase any common shares in the second quarter of 2026; however, 504,652 common shares at total cost of $20.33 million were repurchased during the first quarter of 2026. The company repurchased 50,338 common shares during the second quarter of 2025 at a cost of $1.85 million.
• Total non-performing assets as of June 30, 2026, declined to $17.15 million, compared to $19.11 million as of June 30, 2025.
• Non-performing loans to total loans decreased to 0.70%, a 0.09% reduction when compared with the same quarter of 2025. The Company experienced net charge-offs for the second quarter of 2026 of $1.3 million, or 0.21%, of annualized average loans, compared to net charge-offs of $472 thousand, or 0.08%, of annualized average loans for the same period in 2025. Significant recoveries, in the amount of $1.04 million were received in the second quarter of 2025 driving the year over year variance.
• The allowance for credit losses increased $2.04 million in the second quarter of 2026 compared to December 31, 2025, primarily driven by the $3.21 million impact of the Hometown transaction. The allowance for credit losses to total loans was 1.33% on June 30, 2026, compared to 1.33% on December 31, 2025, and 1.40% on June 30, 2025.
• Book value per share on June 30, 2026, was $ 28.52, an increase of $1.22, or 4.47%, from year-end 2025.
  
  
  
  

Non-GAAP Financial Measures

In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this news release include "tangible book value per common share," "return on average tangible common equity," "adjusted earnings," "adjusted diluted earnings per share," "adjusted return on average assets," "adjusted return on average common equity," "adjusted return on average tangible common equity," and certain financial measures presented on a fully taxable equivalent ("FTE") basis. FTE basis is calculated using the federal statutory income tax rate of 21%. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to that comparable GAAP financial measure can be found in the attached tables to this press release. While the Company believes certain non-GAAP financial measures enhance the understanding of its business and performance, they are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions.

About First Community Bankshares, Inc.

First Community Bankshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 61 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of June 30, 2026. First Community Bank offers wealth management and investment advice and services through its Trust Division and through its wholly owned subsidiary, First Community Wealth Management, which collectively managed and administered $1.83 billion in combined assets as of June 30, 2026. The Company reported consolidated assets of $3.61 billion as of June 30, 2026. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, "FCBC". Additional investor information is available on the Company’s website at www.firstcommunitybank.com.

This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; changes in banking laws and regulations; the degree of competition by traditional and non-traditional competitors; the impact of natural disasters, extreme weather events, military conflict , terrorism or other geopolitical events; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
		Three Months Ended																				Six Months Ended
(Amounts in thousands, except share and per share data)		June 30,				March 31,				December 31,				September 30,				June 30,				June 30,
		2026				2026				2025				2025				2025				2026				2025
Interest income
Interest and fees on loans		$	32,638			$	31,722			$	31,232			$	30,805			$	30,637			$	64,360			$	61,306
Interest on securities			2,106				2,198				1,221				1,050				1,029				4,304				2,267
Interest on deposits in banks			4,865				3,861				3,826				3,844				3,722				8,726				6,984
Total interest income			39,609				37,781				36,279				35,699				35,388				77,390				70,557
Interest expense
Interest on deposits			4,734				4,487				3,918				4,402				4,731				9,221				9,602
Total interest expense			4,734				4,487				3,918				4,402				4,731				9,221				9,602
Net interest income			34,875				33,294				32,361				31,297				30,657				68,169				60,955
Provision for credit losses			483				378				36				-				(285	)			861				36
Net interest income after provision			34,392				32,916				32,325				31,297				30,942				67,308				60,919
Noninterest income			22,341				11,457				11,429				10,889				10,340				33,798				20,569
Noninterest expense			27,565				28,737				27,624				26,279				25,455				56,302				50,399
Income before income taxes			29,168				15,636				16,130				15,907				15,827				44,804				31,089
Income tax expense			6,655				3,609				3,665				3,641				3,581				10,264				7,025
Net income		$	22,513			$	12,027			$	12,465			$	12,266			$	12,246			$	34,540			$	24,064
Earnings per common share
Basic		$	1.19			$	0.64			$	0.68			$	0.67			$	0.67			$	1.83			$	1.31
Diluted		$	1.19			$	0.63			$	0.68			$	0.67			$	0.67			$	1.82			$	1.31
Cash dividends per common share
Regular			0.31				0.31				0.31				0.31				0.31				0.62				0.62
Special cash dividend			-				-				1.00				-				-				-				2.07
Weighted average shares outstanding
Basic			18,879,907				18,925,478				18,315,268				18,314,865				18,295,465				18,902,567				18,310,032
Diluted			18,979,314				19,032,945				18,390,550				18,400,289				18,400,793				18,999,498				18,427,503
Performance ratios
Return on average assets			2.49	%			1.39	%			1.53	%			1.53	%			1.53	%			1.95	%			1.51	%
Return on average common equity			16.90	%			9.29	%			9.63	%			9.58	%			9.84	%			13.15	%			9.67	%
Return on average tangible common equity(1)			24.39	%			13.46	%			13.80	%			13.82	%			14.32	%			19.01	%			14.04	%

_________________

(1

)

A non-GAAP financial measure defined as net income divided by average stockholders' equity less average goodwill and other intangible assets.

CONDENSED CONSOLIDATED QUARTERLY NONINTEREST INCOME AND EXPENSE (Unaudited)
		Three Months Ended																				Six Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,				June 30,
(Amounts in thousands)		2026				2026				2025				2025				2025				2026				2025
Noninterest income
Wealth management		$	1,399			$	1,299			$	1,181			$	1,371			$	1,222			$	2,698			$	2,384
Service charges on deposits			4,431				4,185				4,292				4,520				4,120				8,616				7,956
Other service charges and fees			4,473				3,943				4,046				3,847				3,791				8,416				7,131
(Loss) gain on sale of securities			210				(2	)			-				-				-				208				-
Other operating income(1)			11,828				2,032				1,911				1,151				1,207				13,860				3,098
Total noninterest income		$	22,341			$	11,457			$	11,429			$	10,889			$	10,340			$	33,798			$	20,569
Noninterest expense
Salaries and employee benefits		$	15,127			$	14,367			$	14,398			$	14,351			$	14,349			$	29,494			$	27,684
Occupancy expense			1,529				1,666				1,306				1,508				1,290				3,195				2,866
Furniture and equipment expense			1,576				1,573				1,484				1,502				1,587				3,149				3,162
Service fees			2,858				2,789				2,648				2,728				2,475				5,647				4,959
Advertising and public relations			922				873				923				939				1,154				1,795				2,209
Professional fees			324				238				240				293				360				562				732
Amortization of intangibles			841				846				433				433				526				1,687				1,050
FDIC premiums and assessments			408				415				360				362				361				823				723
Merger expense			-				2,310				2,125				787				-				2,310				-
Other operating expense			3,980				3,660				3,707				3,376				3,353				7,640				7,014
Total noninterest expense		$	27,565			$	28,737			$	27,624			$	26,279			$	25,455			$	56,302			$	50,399

_________________

(1

)

includes other operating income and expense items, such as the gain from the sale of Bearing Insurance.

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited)
		Three Months Ended																				Six Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,				June 30,
(Amounts in thousands, except per share data)		2026				2026				2025				2025				2025				2026				2025
Adjusted Net Income for diluted earnings per share		$	22,513			$	12,027			$	12,465			$	12,266			$	12,246			$	34,540			$	24,064
Non-GAAP adjustments:
(Gain) loss on sale of securities			(210	)			2				-				-				-				(208	)			-
Merger expense			-				2,310				2,125				787				-				2,310				-
Gain on divestiture			(10,384	)			-				-				-				-				(10,384	)			-
Other items (1)			(77	)			(216	)			-				-				-				(293	)			-
Total adjustments			(10,671	)			2,096				2,125				787				-				(8,575	)			-
Tax effect			(2,543	)			457				434				152				-				(2,086	)			-
Adjusted earnings, non-GAAP		$	14,385			$	13,666			$	14,156			$	12,901			$	12,246			$	28,051			$	24,064
Adjusted diluted earnings per common share, non-GAAP		$	0.76			$	0.72			$	0.77			$	0.70			$	0.67			$	1.48			$	1.31
Performance ratios, non-GAAP
Adjusted return on average assets			1.59	%			1.58	%			1.74	%			1.60	%			1.53	%			1.58	%			1.51	%
Adjusted return on average common equity			10.80	%			10.56	%			10.94	%			10.08	%			9.84	%			10.68	%			9.67	%
Adjusted return on average tangible common equity (2)			15.58	%			15.30	%			15.67	%			14.53	%			14.32	%			15.44	%			14.04	%

_________________

(1	)	Includes other non-recurring income and expense items, such as BOLI proceeds.
(2	)	A non-GAAP financial measure defined as adjusted earnings divided by average stockholders' equity less average goodwill and other intangible assets.

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
		Three Months Ended June 30,
		2026												2025
		Average								Average Yield/				Average								Average Yield/
(Amounts in thousands)		Balance				Interest (1)				Rate (1)				Balance				Interest (1)				Rate (1)
Assets
Earning assets
Loans(2)(3)		$	2,459,135			$	32,795				5.35	%		$	2,364,362			$	30,731				5.21	%
Securities available for sale			243,177				2,118				3.49	%			128,457				1,053				3.29	%
Interest-bearing deposits			506,561				4,866				3.85	%			333,872				3,722				4.47	%
Total earning assets			3,208,873				39,779				4.97	%			2,826,691				35,506				5.04	%
Other assets			417,245												377,879
Total assets		$	3,626,118											$	3,204,570
Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits		$	835,345			$	570				0.27	%		$	657,888			$	177				0.11	%
Savings deposits			1,027,941				3,260				1.27	%			895,024				3,322				1.49	%
Time deposits			212,504				891				1.68	%			228,485				1,232				2.16	%
Total interest-bearing deposits			2,075,790				4,721				0.91	%			1,781,397				4,731				1.07	%
Borrowings
Federal funds purchased			-				-				-				-				-				-
Retail repurchase agreements			2,992				13				1.72	%			1,293				-				0.07	%
Total borrowings			2,992				13				1.72	%			1,293				-				0.07	%
Total interest-bearing liabilities			2,078,782				4,734				0.91	%			1,782,690				4,731				1.06	%
Noninterest-bearing demand deposits			958,302												877,346
Other liabilities			54,601												45,310
Total liabilities			3,091,685												2,705,346
Stockholders' equity			534,433												499,224
Total liabilities and stockholders' equity		$	3,626,118											$	3,204,570
Net interest income, FTE(1)						$	35,045											$	30,775
Net interest rate spread											4.06	%											3.97	%
Net interest margin, FTE(1)											4.38	%											4.37	%

_________________

(1	)	Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%.
(2	)	Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual.
(3	)	Interest on loans includes non-cash and accelerated purchase accounting accretion of $372 thousand and $430 thousand for the three months ended June 30, 2026,and 2025, respectively.

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
		Six Months Ended June 30,
		2026												2025
		Average								Average Yield/				Average								Average Yield/
(Amounts in thousands)		Balance				Interest(1)				Rate(1)				Balance				Interest(1)				Rate(1)
Assets
Earning assets
Loans(2)(3)		$	2,446,811			$	64,650				5.33	%		$	2,379,630			$	61,488				5.21	%
Securities available for sale			250,856				4,341				3.49	%			138,804				2,314				3.36	%
Interest-bearing deposits			458,716				8,731				3.84	%			315,011				6,984				4.47	%
Total earning assets			3,156,383				77,722				4.97	%			2,833,445				70,786				5.04	%
Other assets			415,245												375,846
Total assets		$	3,571,628											$	3,209,291
Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits		$	807,894			$	987				0.25	%		$	658,268			$	357				0.11	%
Savings deposits			1,012,667				6,356				1.27	%			893,096				6,633				1.50	%
Time deposits			214,287				1,856				1.75	%			233,343				2,612				2.26	%
Total interest-bearing deposits			2,034,848				9,199				0.91	%			1,784,707				9,602				1.09	%
Borrowings
Federal funds purchased			-				-				-				-				-				-
Retail repurchase agreements			2,780				22				1.59	%			1,183				-				0.06	%
Total borrowings			2,780				22				1.59	%			1,183				-				0.06	%
Total interest-bearing liabilities			2,037,628				9,221				0.91	%			1,785,890				9,602				1.08	%
Noninterest-bearing demand deposits			945,763												868,714
Other liabilities			58,531												52,698
Total liabilities			3,041,922												2,707,302
Stockholders' equity			529,706												501,989
Total liabilities and stockholders' equity		$	3,571,628											$	3,209,291
Net interest income, FTE(1)						$	68,501											$	61,184
Net interest rate spread											4.05	%											3.96	%
Net interest margin, FTE(1)											4.38	%											4.35	%

_________________

(1	)	Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%.
(2	)	Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual.
(3	)	Interest on loans includes non-cash and accelerated purchase accounting accretion of $861 thousand and $986 thousand for the six months ended June 30, 2026,and 2025, respectively.

CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited)
		June 30,				March 31,				December 31,				September 30,				June 30,
(Amounts in thousands, except per share data)		2026				2026				2025				2025				2025
Assets
Cash and cash equivalents		$	591,913			$	600,299			$	512,240			$	427,705			$	395,057
Debt securities available for sale, at fair value			239,050				267,522				132,688				131,314				132,535
Loans held for investment, net of unearned income			2,459,746				2,456,029				2,314,755				2,331,305				2,353,277
Allowance for credit losses			(32,654	)			(33,543	)			(30,761	)			(31,597	)			(33,020	)
Loans held for investment, net			2,427,092				2,422,486				2,283,994				2,299,708				2,320,257
Premises and equipment, net			50,161				50,204				47,560				47,522				48,023
Other real estate owned			52				-				-				264				455
Interest receivable			9,344				9,856				8,720				9,121				8,787
Goodwill			145,672				145,672				143,946				143,946				143,946
Other intangible assets			18,001				18,841				11,098				11,531				11,964
Other assets			126,435				130,067				119,397				118,502				119,990
Total assets		$	3,607,720			$	3,644,947			$	3,259,643			$	3,189,613			$	3,181,014
Liabilities
Deposits
Noninterest-bearing		$	973,218			$	959,555			$	896,255			$	865,554			$	873,677
Interest-bearing			2,043,373				2,104,832				1,789,074				1,765,039				1,761,687
Total deposits			3,016,591				3,064,387				2,685,329				2,630,593				2,635,364
Securities sold under agreements to repurchase			2,924				3,181				1,214				1,429				1,016
Interest, taxes, and other liabilities			49,105				55,985				72,553				46,866				41,805
Total liabilities			3,068,620				3,123,553				2,759,096				2,678,888				2,678,185
Stockholders' equity
Common stock			18,903				18,861				18,335				18,315				18,311
Additional paid-in capital			186,291				184,684				170,358				169,569				169,358
Retained earnings			342,103				325,439				319,368				330,895				324,307
Accumulated other comprehensive loss			(8,197	)			(7,590	)			(7,514	)			(8,054	)			(9,147	)
Total stockholders' equity			539,100				521,394				500,547				510,725				502,829
Total liabilities and stockholders' equity		$	3,607,720			$	3,644,947			$	3,259,643			$	3,189,613			$	3,181,014
Shares outstanding at period-end			18,902,628				18,861,295				18,334,787				18,314,905				18,311,232
Book value per common share		$	28.52			$	27.64			$	27.30			$	27.89			$	27.46
Tangible book value per common share(1)			19.86				18.92				18.84				19.40				18.95

_________________

(1

)

A non-GAAP financial measure defined as stockholders' equity less goodwill and other intangible assets, divided by shares outstanding.

SELECTED CREDIT QUALITY INFORMATION (Unaudited)
		June 30,				March 31,				December 31,				September 30,				June 30,
(Amounts in thousands)		2026				2026				2025				2025				2025
Allowance for Credit Losses
Balance at beginning of period:
Allowance for credit losses - loans		$	33,543			$	30,761			$	31,597			$	33,020			$	33,784
Allowance for credit losses - loan commitments			433				355				319				319				312
Total allowance for credit losses beginning of period			33,976				31,116				31,916				33,339				34,096
Adjustments to beginning balance:
Allowance for credit losses - loans - Hometown acquisition			-				3,213				-				-				-
Net Adjustments			-				3,213				-				-				-
Provision for credit losses:
Provision for (recovery of) credit losses - loans			411				300				-				-				(292	)
Provision for credit losses - loan commitments			72				78				36				-				7
Total provision for (recovery of) credit losses - loans and loan commitments			483				378				36				-				(285	)
Charge-offs			(1,804	)			(1,379	)			(1,527	)			(2,015	)			(1,509	)
Recoveries			504				648				691				592				1,037
Net charge-offs			(1,300	)			(731	)			(836	)			(1,423	)			(472	)
Balance at end of period:
Allowance for credit losses - loans			32,654				33,543				30,761				31,597				33,020
Allowance for credit losses - loan commitments			505				433				355				319				319
Ending balance		$	33,159			$	33,976			$	31,116			$	31,916			$	33,339
Nonperforming Assets
Nonaccrual loans		$	16,816			$	17,672			$	13,941			$	16,514			$	18,084
Accruing loans past due 90 days or more			280				30				212				125				568
Total nonperforming loans			17,096				17,702				14,153				16,639				18,652
OREO			52				-				-				264				455
Total nonperforming assets		$	17,148			$	17,702			$	14,153			$	16,903			$	19,107
Additional Information
Total modified loans		$	3,435			$	2,736			$	2,442			$	2,291			$	2,129
Asset Quality Ratios
Nonperforming loans to total loans			0.70	%			0.72	%			0.61	%			0.71	%			0.79	%
Nonperforming assets to total assets			0.48	%			0.49	%			0.43	%			0.53	%			0.60	%
Allowance for credit losses to nonperforming loans			191.00	%			189.49	%			217.35	%			189.90	%			177.03	%
Allowance for credit losses to total loans			1.33	%			1.37	%			1.33	%			1.36	%			1.40	%
Annualized net charge-offs to average loans			0.21	%			0.12	%			0.14	%			0.24	%			0.08	%

FOR MORE INFORMATION, CONTACT:

David D. Brown

(276) 326-9000