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

BLUEFIELD, Va., April 28, 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 March 31, 2026. The Company reported net income of $12.03 million, or $0.63 per diluted common share, for the quarter ended March 31, 2026. When adjusted to exclude the impact of merger-related expenses associated with the acquisition of Hometown Bancshares, Inc and non-recurring expenses, net income was $13.83 million, or $0.73 per diluted common share.

The Company also declared a quarterly cash dividend to common shareholders of thirty-one cents, $0.31, per common share. The quarterly dividend is payable to common shareholders of record on May 15, 2026, and is expected to be paid on May 29, 2026. 2026 marks the 41st consecutive year of regular dividends to common shareholders and 2025 represented the 16th consecutive year of regular dividend increases. 

On January 23, 2026, the Company completed the acquisition of Middlebourne, West Virginia-based, Hometown Bancshares, Inc. and its wholly owned subsidiary, Union Bank, Inc.

First Quarter 2026 Highlights

Income Statement

• Net income of $12.03 million for the first quarter of 2026, was an increase of $209 thousand, or 1.77%, from the same quarter of 2025.
• When adjusted for merger and non-recurring expenses, net income of $13.83 million was an increase of $2.01 million, or 17.02%, from the same period in 2025.
• Net interest margin remained strong at 4.37% in the first quarter of 2026, up 3 basis points from the first quarter of 2025. Net interest rate spread increased 11 basis points to 4.05%, driving a $3.05 million, or 10.02%, 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 $263.04 million, or 9.26%, contributing $2.67 million in additional interest income, while the yield of interest-bearing deposits declined 19 basis points, reducing interest expense by $393 thousand, or 8.07%.
• Net interest income after provision for loan losses increased $2.94 million, or 9.80%, compared to March 31, 2025. The increase is attributable to an increase in average earnings assets and decreased funding costs.
• Noninterest income increased approximately $1.23 million, or 12.00%, when compared to the same quarter of 2025. The increase is attributable primarily to an increase in other services charges and fees of $603 thousand, or 18.05%, and service charges on deposits of $349 thousand, or 9.10%. Noninterest expense increased $3.79 million, or 15.21%, when compared to the same period of 2025. The increase is attributable to merger expenses of $2.31 million and an increase in salaries and benefits of $1.03 million, or 7.74%. The merger expense is related to the recent acquisition of Hometown Bancshares, Inc.
• Annualized return on average assets ("ROA") was 1.39% for the first quarter of 2026 compared to 1.49% for the same period of 2025. Annualized return on average common equity ("ROE") was 9.29% for the first quarter of 2026 compared to 9.49% for the same period of 2025. 
• When adjusted for merger and non-recurring expenses, ROA was 1.60% for the first quarter of 2026 and ROE was 10.69%. Return on average tangible common equity continues to remain strong at 15.48% for the first quarter of 2026.

Balance Sheet and Asset Quality

• The Company completed the strategic acquisition of Hometown Bancshares, Inc., on January 23, 2026. Total assets of $393.81 million were acquired in the transaction increasing the Company's consolidated assets to $3.64 billion on March 31, 2026. In addition, the Company issued 1.03 million common shares in the purchase resulting in an increase in capital of $35.07 million. The purchase transaction created $1.73 million in goodwill and $8.59 million in other intangible assets. Other major balance sheet components increased in the transaction with $171.04 million acquired loans and $357.72 million in deposits.
• The Company's loan portfolio increased $141.27 million, or 6.10% from yearend 2025.  Excluding the Hometown transaction, the loan portfolio decreased approximately $29.77 million, or 1.29%. Loan production for the first quarter of 2026 was $105.07 million, an increase of $27.16 million over first quarter of 2025.
• Deposits increased $379.06 million, or 14.12% from December 31, 2025. Excluding the Hometown transaction, deposits increased $21.33 million, or 0.79%.
• The Company repurchased 504,652 common shares for a total cost of $20.33 million during the first quarter of 2026. Shares repurchase activity was suspended in the third quarter of 2025 in anticipation of the acquisition of Hometown Bancshares, Inc. and resumed upon its completion in the first quarter of 2026.
• Non-performing loans to total loans decreased to 0.72%, a 0.12% reduction when compared with the same quarter of 2025. The Company experienced net charge-offs for the first quarter of 2026 of $731 thousand, or 0.12%, of annualized average loans, compared to net charge-offs of $1.39 million, or 0.24%, of annualized average loans for the same period in 2025. 
• The allowance for credit losses increased $2.78 million, primarily driven by the $3.21 million impact of the Hometown transaction. The allowance for credit losses to total loans was 1.37% on March 31, 2026, compared to 1.42% on March 31, 2025.
• Book value per share on March 31, 2026, was $ 27.64, an increase of $0.34 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 March 31, 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 $1.77 billion in combined assets as of March 31, 2026. The Company reported consolidated assets of $3.64 billion as of March 31, 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.

CONTACT:

David D. Brown

(276) 326-9000

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
	Three Months Ended
	March 31,				December 31,				September 30,				June 30,				March 31,
(Amounts in thousands, except share and per share data)	2026				2025				2025				2025				2025
Interest income
Interest and fees on loans	$	31,722			$	31,232			$	30,805			$	30,637			$	30,669
Interest on securities		2,198				1,221				1,050				1,029				1,238
Interest on deposits in banks		3,861				3,826				3,844				3,722				3,262
Total interest income		37,781				36,279				35,699				35,388				35,169
Interest expense
Interest on deposits		4,487				3,918				4,402				4,731				4,871
Interest on borrowings		-				-				-				-				-
Total interest expense		4,487				3,918				4,402				4,731				4,871
Net interest income		33,294				32,361				31,297				30,657				30,298
Provision for credit losses		378				36				-				(285	)			321
Net interest income after provision		32,916				32,325				31,297				30,942				29,977
Noninterest income		11,457				11,429				10,889				10,340				10,229
Noninterest expense		28,737				27,624				26,279				25,455				24,944
Income before income taxes		15,636				16,130				15,907				15,827				15,262
Income tax expense		3,609				3,665				3,641				3,581				3,444
Net income	$	12,027			$	12,465			$	12,266			$	12,246			$	11,818
Earnings per common share
Basic	$	0.64			$	0.68			$	0.67			$	0.67			$	0.64
Diluted	$	0.63			$	0.68			$	0.67			$	0.67			$	0.64
Cash dividends per common share
Regular		0.31				0.31				0.31				0.31				0.31
Special cash dividend		-				1.00				-				-				2.07
Weighted average shares outstanding
Basic		18,925,478				18,315,268				18,314,865				18,295,465				18,324,760
Diluted		19,032,945				18,390,550				18,400,289				18,400,793				18,451,321
Performance ratios
Return on average assets		1.39	%			1.53	%			1.53	%			1.53	%			1.49	%
Return on average common equity		9.29	%			9.63	%			9.58	%			9.84	%			9.49	%
Return on average tangible common equity(1)		13.46	%			13.80	%			13.82	%			14.32	%			13.79	%

_____________________________

(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
	March 31,				December 31,				September 30,				June 30,				March 31,
(Amounts in thousands)	2026				2025				2025				2025				2025
Noninterest income
Wealth management	$	1,299			$	1,181			$	1,371			$	1,222			$	1,162
Service charges on deposits		4,185				4,292				4,520				4,120				3,836
Other service charges and fees		3,943				4,046				3,847				3,791				3,340
(Loss) gain on sale of securities		(2	)			-				-				-				-
Other operating income		2,032				1,911				1,151				1,207				1,891
Total noninterest income	$	11,457			$	11,429			$	10,889			$	10,340			$	10,229
Noninterest expense
Salaries and employee benefits	$	14,367			$	14,398			$	14,351			$	14,349			$	13,335
Occupancy expense		1,666				1,306				1,508				1,290				1,576
Furniture and equipment expense		1,573				1,484				1,502				1,587				1,575
Service fees		2,789				2,648				2,728				2,475				2,484
Advertising and public relations		873				923				939				1,154				1,055
Professional fees		238				240				293				360				372
Amortization of intangibles		846				433				433				526				524
FDIC premiums and assessments		415				360				362				361				362
Merger expense		2,310				2,125				787				-				-
Other operating expense		3,660				3,707				3,376				3,353				3,661
Total noninterest expense	$	28,737			$	27,624			$	26,279			$	25,455			$	24,944

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited)
	Three Months Ended
	March 31,				December 31,				September 30,				June 30,				March 31,
(Amounts in thousands, except per share data)	2026				2025				2025				2025				2025
Adjusted Net Income for diluted earnings per share	$	12,027			$	12,465			$	12,266			$	12,246			$	11,818
Non-GAAP adjustments:
Loss on sale of securities		2				-				-				-				-
Merger expense		2,310				2,125				787				-				-
Total adjustments		2,312				2,125				787				-				-
Tax effect		509				434				152				-				-
Adjusted earnings, non-GAAP	$	13,830			$	14,156			$	12,901			$	12,246			$	11,818
Adjusted diluted earnings per common share, non-GAAP	$	0.73			$	0.77			$	0.70			$	0.67			$	0.64
Performance ratios, non-GAAP
Adjusted return on average assets		1.60	%			1.74	%			1.60	%			1.53	%			1.49	%
Adjusted return on average common equity		10.69	%			10.94	%			10.08	%			9.84	%			9.49	%
Adjusted return on average tangible common equity (2)		15.48	%			15.67	%			14.53	%			14.32	%			13.79	%

_____________________________

(1	)	Includes other non-recurring income and expense items.
(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 March 31,
	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)	$	2,434,351			$	31,854				5.31	%		$	2,395,068			$	30,757				5.21	%
Securities available for sale		258,621				2,224				3.49	%			149,266				1,261				3.43	%
Interest-bearing deposits		410,338				3,865				3.82	%			295,939				3,262				4.47	%
Total earning assets		3,103,310				37,943				4.96	%			2,840,273				35,280				5.04	%
Other assets		413,222												373,791
Total assets	$	3,516,532											$	3,214,064
Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits	$	780,138			$	417				0.22	%		$	658,651			$	180				0.11	%
Savings deposits		997,222				3,097				1.26	%			891,148				3,311				1.51	%
Time deposits		216,089				964				1.81	%			238,254				1,380				2.35	%
Total interest-bearing deposits		1,993,449				4,478				0.91	%			1,788,053				4,871				1.10	%
Borrowings
Federal funds purchased		-				-				-				-				-				-
Retail repurchase agreements		2,565				9				1.44	%			1,071				-				0.06	%
Total borrowings		2,565				9				1.44	%			1,071				-				0.06	%
Total interest-bearing liabilities		1,996,014				4,487				0.91	%			1,789,124				4,871				1.10	%
Noninterest-bearing demand deposits		933,084												859,988
Other liabilities		62,507												60,167
Total liabilities		2,991,605												2,709,279
Stockholders' equity		524,927												504,785
Total liabilities and stockholders' equity	$	3,516,532											$	3,214,064
Net interest income, FTE(1)					$	33,456											$	30,409
Net interest rate spread										4.05	%											3.94	%
Net interest margin, FTE(1)										4.37	%											4.34	%

_____________________________

(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 $490 thousand and $556 thousand for the three months ended March 31, 2026,and 2025, respectively.

5

CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited)
	March 31,				December 31,				September 30,				June 30,				March 31,
(Amounts in thousands, except per share data)	2026				2025				2025				2025				2025
Assets
Cash and cash equivalents	$	600,299			$	512,240			$	427,705			$	395,057			$	414,682
Debt securities available for sale, at fair value		267,522				132,688				131,314				132,535				129,659
Loans held for investment, net of unearned income		2,456,029				2,314,755				2,331,305				2,353,277				2,382,699
Allowance for credit losses		(33,543	)			(30,761	)			(31,597	)			(33,020	)			(33,784	)
Loans held for investment, net		2,422,486				2,283,994				2,299,708				2,320,257				2,348,915
Premises and equipment, net		50,204				47,560				47,522				48,023				48,780
Other real estate owned		-				-				264				455				298
Interest receivable		9,856				8,720				9,121				8,787				9,306
Goodwill		145,672				143,946				143,946				143,946				143,946
Other intangible assets		18,841				11,098				11,531				11,964				12,490
Other assets		130,067				119,397				118,502				119,990				117,697
Total assets	$	3,644,947			$	3,259,643			$	3,189,613			$	3,181,014			$	3,225,773
Liabilities
Deposits
Noninterest-bearing	$	959,555			$	896,255			$	865,554			$	873,677			$	893,794
Interest-bearing		2,104,832				1,789,074				1,765,039				1,761,687				1,790,683
Total deposits		3,064,387				2,685,329				2,630,593				2,635,364				2,684,477
Securities sold under agreements to repurchase		3,181				1,214				1,429				1,016				908
Interest, taxes, and other liabilities		55,985				72,553				46,866				41,805				43,971
Total liabilities		3,123,553				2,759,096				2,678,888				2,678,185				2,729,356
Stockholders' equity
Common stock		18,861				18,335				18,315				18,311				18,327
Additional paid-in capital		184,684				170,358				169,569				169,358				169,867
Retained earnings		325,439				319,368				330,895				324,307				317,728
Accumulated other comprehensive loss		(7,590	)			(7,514	)			(8,054	)			(9,147	)			(9,505	)
Total stockholders' equity		521,394				500,547				510,725				502,829				496,417
Total liabilities and stockholders' equity	$	3,644,947			$	3,259,643			$	3,189,613			$	3,181,014			$	3,225,773
Shares outstanding at period-end		18,861,295				18,334,787				18,314,905				18,311,232				18,326,657
Book value per common share	$	27.64			$	27.30			$	27.89			$	27.46			$	27.09
Tangible book value per common share(1)		18.92				18.84				19.40				18.95				18.55

_____________________________

(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)
	March 31,				December 31,				September 30,				June 30,				March 31,
(Amounts in thousands)	2026				2025				2025				2025				2025
Allowance for Credit Losses
Balance at beginning of period:
Allowance for credit losses - loans	$	30,761			$	31,597			$	33,020			$	33,784			$	34,825
Allowance for credit losses - loan commitments		355				319				319				312				341
Total allowance for credit losses beginning of period		31,116				31,916				33,339				34,096				35,166
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		300				-				-				(292	)			350
Provision for (recovery of) credit losses - loan commitments		78				36				-				7				(29	)
Total provision for (recovery of) credit losses - loans and loan commitments		378				36				-				(285	)			321
Charge-offs		(1,379	)			(1,527	)			(2,015	)			(1,509	)			(1,998	)
Recoveries		648				691				592				1,037				607
Net charge-offs		(731	)			(836	)			(1,423	)			(472	)			(1,391	)
Balance at end 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
Ending balance	$	33,976			$	31,116			$	31,916			$	33,339			$	34,096
Nonperforming Assets
Nonaccrual loans	$	17,672			$	13,941			$	16,514			$	18,084			$	19,974
Accruing loans past due 90 days or more		30				212				125				568				117
Total nonperforming loans		17,702				14,153				16,639				18,652				20,091
OREO		-				-				264				455				298
Total nonperforming assets	$	17,702			$	14,153			$	16,903			$	19,107			$	20,389
Additional Information
Total modified loans	$	2,736			$	2,442			$	2,291			$	2,129			$	2,124
Asset Quality Ratios
Nonperforming loans to total loans		0.72	%			0.61	%			0.71	%			0.79	%			0.84	%
Nonperforming assets to total assets		0.49	%			0.43	%			0.53	%			0.60	%			0.63	%
Allowance for credit losses to nonperforming loans		189.49	%			217.35	%			189.90	%			177.03	%			168.15	%
Allowance for credit losses to total loans		1.37	%			1.33	%			1.36	%			1.40	%			1.42	%
Annualized net charge-offs to average loans		0.12	%			0.14	%			0.24	%			0.08	%			0.24	%