First Community Bankshares, Inc. Announces Record Third Quarter 2026 Results And Quarterly Cash Dividend

(MENAFN- GlobeNewsWire - Nasdaq) BLUEFIELD, Va., Oct. 27, 2026 (GLOBE NEWSWIRE) -- First Community Bankshares, Inc. (NASDAQ: FCBC) () (the“Company”) today reported its unaudited results of operations and other financial information for the quarter ended September 30, 2026. The Company reported a quarterly net income of $15.42 million, or $0.81 per diluted common share, for the quarter ended September 30, 2026. Net income for the nine months ended September 30, 2026, reached a record $49.96 million, with diluted earnings per common share of $2.63.

The Company also declared a quarterly cash dividend to common shareholders of thirty-three cents, $0.33, per common share. The quarterly dividend is payable to common shareholders of record on November 13, 2026, and is expected to be paid on November 27, 2026. This year marks the 41st consecutive year of regular dividends to common shareholders.

Third Quarter 2026 Highlights

Income Statement

	o	Net income for the third quarter of 2026 increased $3.16 million, or 25.74%, to $15.42 million, compared with $12.27 million for the third quarter of 2025. For the first nine months of 2026, net income reached a record $49.96 million, surpassing the previous nine-month record of $40.61 million reported in 2021 and increasing $13.63 million compared with the first nine months of 2025.
	o	Excluding merger-related and other non-recurring items, adjusted net income for the third quarter of 2026 was $14.74 million, an increase of $1.84 million, or 14.23%, from the same period in 2025. For the first nine months of 2026, adjusted net income totaled $42.79 million, an increase of $5.82 million, or 15.76%, compared to the same time period of 2025. Significant non-recurring pre-tax items during 2026 included a $10.38 million gain on the sale of the Company's stake in Bearing Insurance and merger-related costs of $2.31 million.
	o	Net interest margin increased 3 basis points to 4.46% for the third quarter of 2026, compared with 4.43% for the third quarter of 2025. Net interest rate spread increased 10 basis points to 4.16%, contributing to a $4.62 million, or 14.72%, increase in tax-equivalent net interest income. The improvement was primarily driven by an increase in average earning assets and lower funding costs. Average earning assets increased $390.91 million, or 13.89%, contributing $4.56 million in additional interest income, while the cost of interest-bearing deposits declined 15 basis points.
	o	Net interest income after provision for loan losses increased $3.89 million, or 12.42%, compared with September 30, 2025. The increase was primarily attributable to growth in average earning assets associated with the acquisition of Hometown Bancshares, completed in the first quarter of 2026.
	o	Noninterest income increased $1.76 million, or 16.14%, compared to the same quarter of 2025, primarily reflecting a combined $1.61 million increase in other operating income and other service charges and fees. Noninterest expense increased $1.66 million, or 6.32%, over the same period, primarily due to increases in salaries and benefits of $955 thousand, or 6.66%, other operating expense of $471 thousand, or 13.95%, and amortization of intangibles of $401 thousand, or 92.61%.
	o	Annualized return on average assets ("ROA") increased to 1.69% for the third quarter of 2026, compared with 1.53% for the same quarter of 2025. Annualized return on average common equity ("ROE") increased to 11.23%, compared with 9.58% for the same period of 2025.
	o	When adjusted for merger and non-recurring expenses, ROA was 1.62% for the third quarter of 2026 and ROE was 10.73%. Return on average tangible common equity was 15.32%.

Balance Sheet and Asset Quality

	o	Consolidated assets totaled $3.63 billion at September 30, 2026.
	o	The Company's loan portfolio increased $162.66 million, or 7.03% from year-end 2025. Excluding the Hometown acquisition, the loan portfolio decreased approximately $8.38 million, or 0.36%. However, loan production for the third quarter of 2026 was $125.59 million, compared to $88.84 million for the same quarter in 2025, a 41.37% increase.
	o	The allowance for credit losses increased $1.88 million in the third quarter of 2026 compared to December 31, 2025, primarily driven by the impact of the Hometown transaction. The allowance for credit losses to total loans was 1.32% on September 30, 2026, compared to 1.33% on December 31, 2025, and 1.36% on September 30, 2025.
	o	The Company did not repurchase any common shares in the third quarter of 2026 or 2025. However, 504,652 common shares at a total cost of $20.33 million were repurchased during the first quarter of 2026.
	o	Total non-performing assets declined $1.03 million, or 6.09%, compared to the same period of 2025, reflecting continued improvement in asset quality and the second consecutive quarterly decline.
	o	Non-performing loans as a percentage of total loans improved to 0.64% on September 30, 2026, from 0.71% at September 30, 2025, a decrease of 7 basis points. Net charge-offs for the third quarter of 2026 totaled $696 thousand, or 0.11%, of annualized average loans, compared to $1.42 million, or 0.24%, of annualized average loans for the same period in 2025. The year-over-year improvement was primarily attributable to $2.01 million of significant charge-offs recorded during the third quarter of 2025.
	o	Book value per share on September 30, 2026, was $ 28.83, an increase of $1.53, or 5.60%, 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 September 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 $1.82 billion in combined assets as of September 30, 2026. The Company reported consolidated assets of $3.63 billion as of September 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.

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			Nine Months Ended
(Amounts in thousands, except share and per share data)		September 30,			June 30,			March 31,			December 31,			September 30,			September 30,
	2026			2026			2026			2025			2025			2026			2025
Interest income
Interest and fees on loans		$	33,125			$	32,638			$	31,722			$	31,232			$	30,805			$	97,485			$	92,111
Interest on securities			2,167				2,106				2,198				1,221				1,050				6,471				3,317
Interest on deposits in banks			4,913				4,865				3,861				3,826				3,844				13,639				10,828
Total interest income			40,205				39,609				37,781				36,279				35,699				117,595				106,256
Interest expense
Interest on deposits			4,340				4,734				4,487				3,918				4,402				13,561				14,004
Total interest expense			4,340				4,734				4,487				3,918				4,402				13,561				14,004
Net interest income			35,865				34,875				33,294				32,361				31,297				104,034				92,252
Provision for credit losses			680				483				378				36				-				1,541				36
Net interest income after provision			35,185				34,392				32,916				32,325				31,297				102,493				92,216
Noninterest income			12,647				22,341				11,457				11,429				10,889				46,445				31,458
Noninterest expense			27,940				27,565				28,737				27,624				26,279				84,242				76,679
Income before income taxes			19,892				29,168				15,636				16,130				15,907				64,696				46,995
Income tax expense			4,469				6,655				3,609				3,665				3,641				14,733				10,666
Net income		$	15,423			$	22,513			$	12,027			$	12,465			$	12,266			$	49,963			$	36,329
Earnings per common share
Basic		$	0.82			$	1.19			$	0.64			$	0.68			$	0.67			$	2.64			$	1.98
Diluted		$	0.81			$	1.19			$	0.63			$	0.68			$	0.67			$	2.63			$	1.97
Cash dividends per common share
Regular			0.33				0.31				0.31				0.31				0.31				0.95				0.93
Special cash dividend			-				-				-				1.00				-				-				2.07
Weighted average shares outstanding
Basic			18,910,756				18,879,907				18,925,478				18,315,268				18,314,865				18,905,327				18,311,661
Diluted			18,993,264				18,979,314				19,032,945				18,390,550				18,400,289				18,986,593				18,417,066
Performance ratios
Return on average assets			1.69	%			2.49	%			1.39	%			1.53	%			1.53	%			1.86	%			1.52	%
Return on average common equity			11.23	%			16.90	%			9.29	%			9.63	%			9.58	%			12.49	%			9.64	%
Return on average tangible common equity(1)			16.03	%			24.39	%			13.46	%			13.80	%			13.82	%			17.98	%			13.97	%

_______________________
(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			Nine Months Ended
(Amounts in thousands)		September 30,			June 30,			March 31,			December 31,			September 30,			September 30,
	2026			2026			2026			2025			2025			2026			2025
Noninterest income
Wealth management		$	1,324			$	1,399			$	1,299			$	1,181			$	1,371			$	4,022			$	3,755
Service charges on deposits			4,719				4,431				4,185				4,292				4,520				13,335				12,476
Other service charges and fees			4,412				4,473				3,943				4,046				3,847				12,828				10,978
(Loss) gain on sale of securities			-				210				(2	)			-				-				208				-
Other operating income(1)			2,192				11,828				2,032				1,911				1,151				16,052				4,249
Total noninterest income		$	12,647			$	22,341			$	11,457			$	11,429			$	10,889			$	46,445			$	31,458
Noninterest expense
Salaries and employee benefits		$	15,306			$	15,127			$	14,367			$	14,398			$	14,351			$	44,800			$	42,035
Occupancy expense			1,431				1,529				1,666				1,306				1,508				4,626				4,374
Furniture and equipment expense			1,650				1,576				1,573				1,484				1,502				4,799				4,664
Service fees			3,033				2,858				2,789				2,648				2,728				8,680				7,687
Advertising and public relations			1,122				922				873				923				939				2,917				3,148
Professional fees			305				324				238				240				293				867				1,025
Amortization of intangibles			834				841				846				433				433				2,521				1,483
FDIC premiums and assessments			412				408				415				360				362				1,235				1,085
Merger expense			-				-				2,310				2,125				787				2,310				787
Other operating expense			3,847				3,980				3,660				3,707				3,376				11,487				10,391
Total noninterest expense		$	27,940			$	27,565			$	28,737			$	27,624			$	26,279			$	84,242			$	76,679

_______________________
(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			Nine Months Ended
(Amounts in thousands, except per share data)		September 30,			June 30,			March 31,			December 31,			September 30,			September 30,
	2026			2026			2026			2025			2025			2026			2025
Adjusted Net Income		$	15,423			$	22,513			$	12,027			$	12,465			$	12,266			$	49,963			$	36,329
Non-GAAP adjustments:
(Gain) loss on sale of securities			-				(210	)			2				-				-				(208	)			-
Merger expense			-				-				2,310				2,125				787				2,310				787
Gain on divestiture			-				(10,384	)			-				-				-				(10,384	)			-
Other items (1)			(902	)			(77	)			(216	)			-				-				(1,195	)			-
Total adjustments			(902	)			(10,671	)			2,096				2,125				787				(9,477	)			787
Tax effect			(216	)			(2,543	)			457				434				152				(2,302	)			152
Adjusted earnings, non-GAAP		$	14,737			$	14,385			$	13,666			$	14,156			$	12,901			$	42,788			$	36,964
Adjusted diluted earnings per common share, non-GAAP		$	0.78			$	0.76			$	0.72			$	0.77			$	0.70			$	2.25			$	2.01
Performance ratios, non-GAAP
Adjusted return on average assets			1.62	%			1.59	%			1.58	%			1.74	%			1.60	%			1.60	%			1.54	%
Adjusted return on average common equity			10.73	%			10.80	%			10.56	%			10.94	%			10.08	%			10.70	%			9.81	%
Adjusted return on average tangible common equity (2)			15.32	%			15.58	%			15.30	%			15.67	%			14.53	%			15.40	%			14.21	%

_______________________
(1	)	Includes other non-recurring income and expense items, such as BOLI proceeds and the sale of bank property.
(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 September 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)		$	2,459,077			$	33,281				5.37	%		$	2,339,631			$	30,897				5.24	%
Securities available for sale			243,418				2,180				3.55	%			130,187				1,070				3.26	%
Interest-bearing deposits			501,771				4,913				3.88	%			343,541				3,845				4.44	%
Total earning assets			3,204,266				40,374				5.00	%			2,813,359				35,812				5.05	%
Other assets			409,121												377,244
Total assets		$	3,613,387											$	3,190,603
Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits		$	810,579			$	292				0.14	%		$	657,223			$	196				0.12	%
Savings deposits			1,030,223				3,246				1.25	%			895,925				3,225				1.43	%
Time deposits			203,090				788				1.54	%			213,601				981				1.82	%
Total interest-bearing deposits			2,043,892				4,326				0.84	%			1,766,749				4,402				0.99	%
Borrowings
Federal funds purchased			-				-				-				-				-				-
Retail repurchase agreements			3,082				14				1.86	%			1,159				-				0.06	%
Total borrowings			3,082				14				1.86	%			1,159				-				0.06	%
Total interest-bearing liabilities			2,046,974				4,340				0.84	%			1,767,908				4,402				0.99	%
Noninterest-bearing demand deposits			965,545												868,489
Other liabilities			55,925												46,321
Total liabilities			3,068,444												2,682,718
Stockholders' equity			544,943												507,885
Total liabilities and stockholders' equity		$	3,613,387											$	3,190,603
Net interest income, FTE(1)						$	36,034											$	31,410
Net interest rate spread											4.16	%											4.06	%
Net interest margin, FTE(1)											4.46	%											4.43	%

_______________________
(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 $156 thousand and $405 thousand for the three months ended September 30, 2026,and 2025, respectively.

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
		Nine Months Ended September 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)		$	2,450,945			$	97,931				5.34	%		$	2,366,151			$	92,385				5.22	%
Securities available for sale			248,350				6,521				3.51	%			135,900				3,384				3.33	%
Interest-bearing deposits			473,225				13,644				3.85	%			324,625				10,828				4.46	%
Total earning assets			3,172,520				118,096				4.98	%			2,826,676				106,597				5.04	%
Other assets			413,180												376,317
Total assets		$	3,585,700											$	3,202,993
Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits		$	808,799			$	1,279				0.21	%		$	657,916			$	554				0.11	%
Savings deposits			1,018,583				9,602				1.26	%			894,049				9,857				1.47	%
Time deposits			210,513				2,644				1.68	%			226,690				3,593				2.12	%
Total interest-bearing deposits			2,037,895				13,525				0.89	%			1,778,655				14,004				1.05	%
Borrowings
Federal funds purchased			-				-				-				-				-				-
Retail repurchase agreements			2,882				36				1.69	%			1,174				-				0.06	%
Total borrowings			2,882				36				1.69	%			1,174				-				0.06	%
Total interest-bearing liabilities			2,040,777				13,561				0.89	%			1,779,829				14,004				1.05	%
Noninterest-bearing demand deposits			952,429												868,639
Other liabilities			57,653												50,547
Total liabilities			3,050,859												2,699,015
Stockholders' equity			534,841												503,978
Total liabilities and stockholders' equity		$	3,585,700											$	3,202,993
Net interest income, FTE(1)						$	104,535											$	92,593
Net interest rate spread											4.09	%											3.99	%
Net interest margin, FTE(1)											4.41	%											4.38	%

_______________________
(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 $1.02 million and $1.39 million for the nine months ended September 30, 2026, and 2025, respectively.

CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited)
(Amounts in thousands, except per share data)		September 30,			June 30,			March 31,			December 31,			September 30,
	2026			2026			2026			2025			2025
Assets
Cash and cash equivalents		$	502,348			$	591,913			$	600,299			$	512,240			$	427,705
Debt securities available for sale, at fair value			335,316				239,050				267,522				132,688				131,314
Loans held for investment, net of unearned income			2,477,419				2,459,746				2,456,029				2,314,755				2,331,305
Allowance for credit losses			(32,638	)			(32,654	)			(33,543	)			(30,761	)			(31,597	)
Loans held for investment, net			2,444,781				2,427,092				2,422,486				2,283,994				2,299,708
Premises and equipment, net			50,132				50,161				50,204				47,560				47,522
Other real estate owned			66				52				-				-				264
Interest receivable			9,740				9,344				9,856				8,720				9,121
Goodwill			145,672				145,672				145,672				143,946				143,946
Other intangible assets			17,167				18,001				18,841				11,098				11,531
Other assets			128,457				126,435				130,067				119,397				118,502
Total assets		$	3,633,679			$	3,607,720			$	3,644,947			$	3,259,643			$	3,189,613
Liabilities
Deposits
Noninterest-bearing		$	974,259			$	973,218			$	959,555			$	896,255			$	865,554
Interest-bearing			2,054,625				2,043,373				2,104,832				1,789,074				1,765,039
Total deposits			3,028,884				3,016,591				3,064,387				2,685,329				2,630,593
Securities sold under agreements to repurchase			2,440				2,924				3,181				1,214				1,429
Interest, taxes, and other liabilities			57,085				49,105				55,985				72,553				46,866
Total liabilities			3,088,409				3,068,620				3,123,553				2,759,096				2,678,888
Stockholders' equity
Common stock			18,916				18,903				18,861				18,335				18,315
Additional paid-in capital			186,827				186,291				184,684				170,358				169,569
Retained earnings			351,285				342,103				325,439				319,368				330,895
Accumulated other comprehensive loss			(11,758	)			(8,197	)			(7,590	)			(7,514	)			(8,054	)
Total stockholders' equity			545,270				539,100				521,394				500,547				510,725
Total liabilities and stockholders' equity		$	3,633,679			$	3,607,720			$	3,644,947			$	3,259,643			$	3,189,613
Shares outstanding at period-end			18,916,116				18,902,628				18,861,295				18,334,787				18,314,905
Book value per common share		$	28.83			$	28.52			$	27.64			$	27.30			$	27.89
Tangible book value per common share(1)			20.22				19.86				18.92				18.84				19.40

_______________________
(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)
		September 30,			June 30,			March 31,			December 31,			September 30,
(Amounts in thousands)		2026			2026			2026			2025			2025
Allowance for Credit Losses
Balance at beginning 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
Total allowance for credit losses beginning of period			33,159				33,976				31,116				31,916				33,339
Adjustments to beginning balance:
Allowance for credit losses - loans - Hometown acquisition			-				-				3,213				-				-
Net Adjustments			-				-				3,213				-				-
Provision for credit losses:
Provision for credit losses - loans			680				411				300				-				-
Provision for credit losses - loan commitments			-				72				78				36				-
Total provision for credit losses - loans and loan commitments			680				483				378				36				-
Charge-offs			(1,254	)			(1,804	)			(1,379	)			(1,527	)			(2,015	)
Recoveries			558				504				648				691				592
Net charge-offs			(696	)			(1,300	)			(731	)			(836	)			(1,423	)
Balance at end of period:
Allowance for credit losses - loans			32,638				32,654				33,543				30,761				31,597
Allowance for credit losses - loan commitments			505				505				433				355				319
Ending balance		$	33,143			$	33,159			$	33,976			$	31,116			$	31,916
Nonperforming Assets
Nonaccrual loans		$	15,763			$	16,816			$	17,672			$	13,941			$	16,514
Accruing loans past due 90 days or more			45				280				30				212				125
Total nonperforming loans			15,808				17,096				17,702				14,153				16,639
OREO			66				52				-				-				264
Total nonperforming assets		$	15,874			$	17,148			$	17,702			$	14,153			$	16,903
Additional Information
Total modified loans		$	3,418			$	3,435			$	2,736			$	2,442			$	2,291
Asset Quality Ratios
Nonperforming loans to total loans			0.64	%			0.70	%			0.72	%			0.61	%			0.71	%
Nonperforming assets to total assets			0.44	%			0.48	%			0.49	%			0.43	%			0.53	%
Allowance for credit losses to nonperforming loans			206.47	%			191.00	%			189.49	%			217.35	%			189.90	%
Allowance for credit losses to total loans			1.32	%			1.33	%			1.37	%			1.33	%			1.36	%
Annualized net charge-offs to average loans			0.11	%			0.21	%			0.12	%			0.14	%			0.24	%

FOR MORE INFORMATION, CONTACT:

David D. Brown

(276) 326-9000

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