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
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%
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(1)A non-GAAP financial measure defined as net income divided by average stockholders' equity less average goodwill and other intangible assets.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
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%
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(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.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%
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(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
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(1 )A non-GAAP financial measure defined as stockholders' equity less goodwill and other intangible assets, divided by shares outstanding.