BLUEFIELD, Va., July 22, 2025 (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, 2025. The Company reported net income of $12.25 million, or $0.67 per diluted common share, for the quarter ended June 30, 2025. Net income for the six months ended June 30, 2025, was $24.06 million or $1.31 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 August 8, 2025, and is expected to be paid on August 22, 2025. This year marks the 40th consecutive year of regular dividends to common shareholders and the prior year was the 15th consecutive year of regular dividend increases.

During the second quarter of 2025, the Company was named a recipient of the 2024 Raymond James Community Bankers Cup. The award recognizes the superior financial performance of the top 10% of the country's community banks.

Second Quarter 2025 Highlights

Income Statement

Net interest margin for the second quarter of 2025 remained strong at 4.37%. The yield on earning assets decreased 16 basis points from the same period of 2024 and is primarily attributable to a decrease in interest income of $1.40 million. Interest income on loans decreased $2.05 million, which was primarily due to a decrease in the average balance for loans of $134.85 million. Additionally, the yield on loans decreased 6 basis points. The decrease in interest income on loans was somewhat offset by an increase in interest income on interest-bearing deposits with banks of $840 thousand. Interest expense on interest-bearing liabilities decreased $145 thousand, which is primarily attributable to a decrease in average balance, as well as a decrease in yield of 3 basis points.
There was a recovery of provision for credit losses for the quarter ending June 30, 2025, of $285 thousand compared to a provision of $144 thousand for the same period of 2024. The decrease is primarily due to a decrease in net charge-offs for the quarter of $553 thousand compared to the same period in 2024 and a reduction in loan balance period over period of $119.99 million.
Noninterest income increased approximately $998 thousand, or 10.68%, when compared to the same quarter of 2024. The increase is primarily attributable to an increase in service charges on deposits of $692 thousand, or 20.19%. Noninterest expense increased $558 thousand, or 2.24%, when compared to the same period of 2024. The increase is attributable to increases in salaries and benefits of $1.86 million, or 14.87%, other operating expense of $328 thousand, or 10.84%, and advertising and public relations of $221 thousand, or 23.67%.
Net income of $12.25 million for the second quarter of 2025, was a decrease of $440 thousand, or 3.47%, from the same quarter of 2024. Net income of $24.06 million for the first six months of 2025, was a decrease of $1.47 million, or 5.75%, from the same period of 2024.
Annualized return on average assets ("ROA") was 1.53% for the second quarter of 2025 compared to 1.58% for the same period of 2024. Annualized return on average assets ("ROA") for the six months ended June 30, 2025, was 1.51% compared to 1.59% for the same period of 2024 Annualized return on average common equity ("ROE") was 9.84% for the second quarter of 2025 compared to 10.02% for the same period of 2024. Annualized return on average common equity ("ROE") was 9.67% for the six months ended June 30, 2025, compared to 10.10% for the same period of 2024. Additionally, return on average tangible common equity continues to remain strong at 14.32% for the second quarter of 2025.

Balance Sheet and Asset Quality

Consolidated assets totaled $3.18 billion at June 30, 2025.
Loans decreased $62.81 million, or 2.60%, from December 31, 2024. Securities available for sale decreased $37.31 million, or 21.97%, from December 31, 2024. Deposits decreased $55.88 million, or 2.08%, which was due to a decrease in interest-bearing demand deposits and declining higher-rate time deposits. Stockholder equity decreased $23.56 million, or 4.48% primarily due to the payment of a special cash dividend in the first quarter of 2025. The net effect of these balance sheet changes resulted in an increase in cash and cash equivalents of $17.60 million, or 4.66%.
The Company repurchased 50,338 common shares during the second quarter of 2025 at a cost of $1.85 million; there were no shares repurchased in the first quarter of 2025. The Company purchased 155,044 common shares during the second quarter of 2024 at a total cost of $5.28 million; a total of 244,440 common shares was purchased during the first six months of 2024 at a total cost of $8.25 million.
Total non-performing assets as of June 30, 2025, were $19.17 million, compared with $20.67 million as of December 31, 2024, and $19.93 million as of June 30, 2024. The Company has realized a declining trend in non-performing assets since September 30, 2024.
Non-performing loans to total loans remained the same at 0.79% when compared with the same quarter of 2024. The Company experienced net charge-offs for the second quarter of 2025 of $472 thousand, or 0.08% of annualized average loans, compared to net charge-offs of $1.03 million, or 0.16%, of annualized average loans for the same period in 2024.
The allowance for credit losses to total loans was 1.40% at June 30, 2025, compared to 1.44% at December 31, 2024 and 1.41% at June 30, 2024.
Book value per share at June 30, 2025, was $ 27.46, a decrease of $1.27 from year-end 2024. The decrease is primarily attributable to the payment of the special cash dividend in the first quarter of 2025 of $2.07 per share totaling approximately $37.93 million.

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 53 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of June 30, 2025. 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 $1.66 billion in combined assets as of June 30, 2025. The Company reported consolidated assets of $3.18 billion as of June 30, 2025. 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)
(Amounts in thousands, except share and per share data)	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,
	2025			2025			2024			2024			2024			2025			2024
Interest income
Interest and fees on loans	$	30,637		$	30,669		$	31,637		$	32,120		$	32,696		$	61,306		$	66,114
Interest on securities		1,029			1,238			1,447			1,070			1,211			2,267			2,909
Interest on deposits in banks		3,722			3,262			3,348			3,702			2,882			6,984			3,795
Total interest income		35,388			35,169			36,432			36,892			36,789			70,557			72,818
Interest expense
Interest on deposits		4,731			4,871			5,099			5,298			4,877			9,602			9,242
Interest on borrowings		-			-			-			-			-			-			35
Total interest expense		4,731			4,871			5,099			5,298			4,877			9,602			9,277
Net interest income		30,657			30,298			31,333			31,594			31,912			60,955			63,541
Provision for credit losses		(285	)		321			1,082			1,360			144			36			1,155
Net interest income after provision		30,942			29,977			30,251			30,234			31,768			60,919			62,386
Noninterest income		10,340			10,229			10,337			10,452			9,342			20,569			18,601
Noninterest expense		25,455			24,944			24,107			24,177			24,897			50,399			48,283
Income before income taxes		15,827			15,262			16,481			16,509			16,213			31,089			32,704
Income tax expense		3,581			3,444			3,441			3,476			3,527			7,025			7,173
Net income	$	12,246		$	11,818		$	13,040		$	13,033		$	12,686		$	24,064		$	25,531


Earnings per common share
Basic	$	0.67		$	0.64		$	0.71		$	0.71		$	0.69		$	1.31		$	1.39
Diluted	$	0.67		$	0.64		$	0.71		$	0.71		$	0.71		$	1.31		$	1.42
Cash dividends per common share
Regular		0.31			0.31			0.31			0.31			0.29			0.62			0.58
Special cash dividend		-			2.07			-			-			-			2.07			-
Weighted average shares outstanding
Basic		18,295,465			18,324,760			18,299,612			18,279,612			18,343,958			18,310,032			18,410,043
Diluted		18,400,793			18,451,321			18,418,441			18,371,907			18,409,876			18,427,503			18,475,110
Performance ratios
Return on average assets		1.53	%		1.49	%		1.60	%		1.60	%		1.58	%		1.51	%		1.59	%
Return on average common equity		9.84	%		9.49	%		9.89	%		10.04	%		10.02	%		9.67	%		10.10	%
Return on average tangible common equity(1)		14.32	%		13.79	%		14.12	%		14.46	%		14.54	%		14.04	%		14.68	%

________________________
(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
(Amounts in thousands)	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,
(Amounts in thousands)	2025		2025		2024		2024		2024		2025		2024
Noninterest income
Wealth management	$	1,222	$	1,162	$	1,251	$	1,071	$	1,064	$	2,384	$	2,163
Service charges on deposits		4,120		3,836		3,613		3,661		3,428		7,956		6,738
Other service charges and fees		3,791		3,340		3,575		3,697		3,670		7,131		7,120
Other operating income		1,207		1,891		1,898		2,023		1,180		3,098		2,580
Total noninterest income	$	10,340	$	10,229	$	10,337	$	10,452	$	9,342	$	20,569	$	18,601
Noninterest expense
Salaries and employee benefits	$	14,349	$	13,335	$	13,501	$	13,129	$	12,491	$	27,684	$	25,072
Occupancy expense		1,290		1,576		1,329		1,270		1,309		2,866		2,687
Furniture and equipment expense		1,587		1,575		1,562		1,574		1,687		3,162		3,232
Service fees		2,475		2,484		2,305		2,461		2,427		4,959		4,876
Advertising and public relations		1,154		1,055		1,165		967		933		2,209		1,729
Professional fees		360		372		295		221		330		732		702
Amortization of intangibles		526		524		535		536		530		1,050		1,060
FDIC premiums and assessments		361		362		365		365		364		723		733
Litigation expense		-		-		-		-		1,800		-		1,800
Other operating expense		3,353		3,661		3,050		3,654		3,026		7,014		6,392
Total noninterest expense	$	25,455	$	24,944	$	24,107	$	24,177	$	24,897	$	50,399	$	48,283

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited)
(Amounts in thousands, except per share data)	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,
	2025			2025			2024			2024			2024			2025			2024
Adjusted Net Income for diluted earnings per share	$	12,246		$	11,818		$	13,040		$	13,033		$	12,686		$	24,064		$	26,210
Non-GAAP adjustments:
Litigation expense		-			-			-			-			1,800			-			1,800
Other items(1)		-			-			-			(825	)		-			-			-
Total adjustments		-			-			-			(825	)		1,800			0			1,800
Tax effect		-			-			-			(198	)		432			0			432
Adjusted earnings, non-GAAP	$	12,246		$	11,818		$	13,040		$	12,406		$	14,054		$	24,064		$	27,578

Adjusted diluted earnings per common share, non-GAAP	$	0.67		$	0.64		$	0.71		$	0.68		$	0.76		$	1.31		$	1.49
Performance ratios, non-GAAP
Adjusted return on average assets		1.53	%		1.49	%		1.60	%		1.53	%		1.75	%		1.51	%		1.72	%
Adjusted return on average common equity		9.84	%		9.49	%		9.89	%		9.56	%		11.10	%		9.67	%		10.91	%
Adjusted return on average tangible common equity (2)		14.32	%		13.79	%		14.12	%		13.77	%		16.11	%		14.04	%		15.86	%

________________________
(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 June 30,
	2025							2024
(Amounts in thousands)	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)	$	2,364,362	$	30,731		5.21	%	$	2,499,212	$	32,777		5.27	%
Securities available for sale		128,457		1,053		3.29	%		144,755		1,242		3.45	%
Interest-bearing deposits		333,872		3,722		4.47	%		210,432		2,883		5.51	%
Total earning assets		2,826,691		35,506		5.04	%		2,854,399		36,902		5.20	%
Other assets		377,879							373,029
Total assets	$	3,204,570						$	3,227,428

Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits	$	657,888	$	178		0.11	%	$	664,707	$	174		0.10	%
Savings deposits		895,024		3,322		1.49	%		874,420		3,582		1.65	%
Time deposits		228,485		1,232		2.16	%		246,291		1,121		1.83	%
Total interest-bearing deposits		1,781,397		4,732		1.07	%		1,785,418		4,877		1.10	%
Borrowings
Federal funds purchased		-		-		-			-		-		0.00	%
Retail repurchase agreements		1,293		-		0.07	%		1,002		-		0.04	%
Total borrowings		1,293		-		0.07	%		1,002		-		0.04	%
Total interest-bearing liabilities		1,782,690		4,732		1.06	%		1,786,420		4,877		1.10	%
Noninterest-bearing demand deposits		877,346							884,681
Other liabilities		45,310							47,123
Total liabilities		2,705,346							2,718,224
Stockholders' equity		499,224							509,204
Total liabilities and stockholders' equity	$	3,204,570						$	3,227,428
Net interest income, FTE(1)			$	30,774						$	32,025
Net interest rate spread						3.97	%						4.10	%
Net interest margin, FTE(1)						4.37	%						4.51	%

________________________
(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 $430 thousand and $661 thousand for the three months ended June 30, 2025 and 2024, respectively.

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
	Six Months Ended June 30,
	2025							2024
	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)	$	2,379,630	$	61,488		5.21	%	$	2,524,159	$	66,278		5.28	%
Securities available for sale		138,804		2,314		3.36	%		191,882		2,974		3.12	%
Interest-bearing deposits		315,011		6,984		4.47	%		138,458		3,798		5.52	%
Total earning assets		2,833,445		70,786		5.04	%		2,854,499		73,050		5.15	%
Other assets		375,846							373,322
Total assets	$	3,209,291						$	3,227,821

Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits	$	658,268	$	358		0.11	%	$	665,291	$	336		0.10	%
Savings deposits		893,096		6,633		1.50	%		870,252		6,995		1.62	%
Time deposits		233,343		2,612		2.26	%		248,133		1,911		1.55	%
Total interest-bearing deposits		1,784,707		9,603		1.09	%		1,783,676		9,242		1.04	%
Borrowings
Federal funds purchased		-		-		-			1,264		35		5.52	%
Retail repurchase agreements		1,183		-		0.06	%		1,065		-		0.05	%
Total borrowings		1,183		-		0.06	%		2,329		35		3.02	%
Total interest-bearing liabilities		1,785,890		9,603		1.08	%		1,786,005		9,277		1.04	%
Noninterest-bearing demand deposits		868,714							885,813
Other liabilities		52,698							47,710
Total liabilities		2,707,302							2,719,528
Stockholders' equity		501,989							508,293
Total liabilities and stockholders' equity	$	3,209,291						$	3,227,821
Net interest income, FTE(1)			$	61,183						$	63,773
Net interest rate spread						3.96	%						4.11	%
Net interest margin, FTE(1)						4.35	%						4.49	%

________________________
(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 $986 thousand and $1.44 million for the six months ended June 30, 2025 and 2024, respectively.

CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited)
	June 30,			March 31,			December 31,			September 30,			June 30,
(Amounts in thousands, except per share data)	2025			2025			2024			2024			2024
Assets
Cash and cash equivalents	$	395,057		$	414,682		$	377,454		$	315,338		$	329,877
Debt securities available for sale, at fair value		132,535			129,659			169,849			166,669			129,686
Loans held for investment, net of unearned income		2,353,277			2,382,699			2,416,089			2,444,113			2,473,268
Allowance for credit losses		(33,020	)		(33,784	)		(34,825	)		(35,118	)		(34,885	)
Loans held for investment, net		2,320,257			2,348,915			2,381,264			2,408,995			2,438,383
Premises and equipment, net		48,023			48,780			48,735			49,654			50,528
Other real estate owned		455			298			521			346			100
Interest receivable		8,787			9,306			9,207			9,883			9,984
Goodwill		143,946			143,946			143,946			143,946			143,946
Other intangible assets		11,964			12,490			13,014			13,550			14,085
Other assets		119,990			117,697			117,226			115,980			116,230
Total assets	$	3,181,014		$	3,225,773		$	3,261,216		$	3,224,361		$	3,232,819

Liabilities
Deposits
Noninterest-bearing	$	873,677		$	893,794		$	883,499		$	869,723		$	889,462
Interest-bearing		1,761,687			1,790,683			1,807,748			1,789,530			1,787,810
Total deposits		2,635,364			2,684,477			2,691,247			2,659,253			2,677,272
Securities sold under agreements to repurchase		1,016			908			906			954			894
Interest, taxes, and other liabilities		41,805			43,971			42,671			43,460			45,769
Total liabilities		2,678,185			2,729,356			2,734,824			2,703,667			2,723,935

Stockholders' equity
Common stock		18,311			18,327			18,322			18,291			18,270
Additional paid-in capital		169,358			169,867			169,752			168,691			168,272
Retained earnings		324,307			317,728			349,489			342,121			334,756
Accumulated other comprehensive loss		(9,147	)		(9,505	)		(11,171	)		(8,409	)		(12,414	)
Total stockholders' equity		502,829			496,417			526,392			520,694			508,884
Total liabilities and stockholders' equity	$	3,181,014		$	3,225,773		$	3,261,216		$	3,224,361		$	3,232,819

Shares outstanding at period-end		18,311,232			18,326,657			18,321,795			18,290,938			18,270,273
Book value per common share	$	27.46		$	27.09		$	28.73		$	28.47		$	27.85
Tangible book value per common share(1)		18.95			18.55			20.16			19.86			19.20

________________________
(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)	2025			2025			2024			2024			2024
Allowance for Credit Losses
Balance at beginning of period:
Allowance for credit losses - loans	$	33,784		$	34,825		$	35,118		$	34,885		$	35,461
Allowance for credit losses - loan commitments		312			341			441			441			746
Total allowance for credit losses beginning of period		34,096			35,166			35,559			35,326			36,207
Provision for credit losses:
(Recovery of ) provision for credit losses - loans		(292	)		350			1,182			1,360			449
(Recovery of) provision for credit losses - loan commitments		7			(29	)		(100	)		-			(305	)
Total provision for credit losses - loans and loan commitments		(285	)		321			1,082			1,360			144
Charge-offs		(1,509	)		(1,998	)		(2,005	)		(1,799	)		(1,599	)
Recoveries		1,037			607			530			672			574
Net charge-offs		(472	)		(1,391	)		(1,475	)		(1,127	)		(1,025	)
Balance at end of period:
Allowance for credit losses - loans		33,020			33,784			34,825			35,118			34,885
Allowance for credit losses - loan commitments		319			312			341			441			441
Ending balance	$	33,339		$	34,096		$	35,166		$	35,559		$	35,326

Nonperforming Assets
Nonaccrual loans	$	18,084		$	19,974		$	19,869		$	19,754		$	19,815
Accruing loans past due 90 days or more		568			117			149			176			19
Modified loans past due 90 days or more		-			125			135			-			-
Total nonperforming loans		18,652			20,216			20,153			19,930			19,834
OREO		455			298			521			346			100
Total nonperforming assets	$	19,107		$	20,514		$	20,674		$	20,276		$	19,934


Additional Information
Total modified loans	$	2,129		$	2,124		$	2,260		$	2,320		$	2,290

Asset Quality Ratios
Nonperforming loans to total loans		0.79	%		0.85	%		0.83	%		0.82	%		0.80	%
Nonperforming assets to total assets		0.60	%		0.64	%		0.63	%		0.63	%		0.62	%
Allowance for credit losses to nonperforming loans		177.03	%		167.12	%		172.80	%		176.21	%		175.88	%
Allowance for credit losses to total loans		1.40	%		1.42	%		1.44	%		1.44	%		1.41	%
Annualized net charge-offs to average loans		0.08	%		0.24	%		0.24	%		0.18	%		0.16	%

FOR MORE INFORMATION, CONTACT:

David D. Brown

(276) 326-9000

First Community Bankshares, Inc. Announces Second Quarter 2025 Results and Quarterly Cash Dividend