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

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,
		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	%

 

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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.

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/
		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