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

BLUEFIELD, Va., Oct. 28, 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 September 30, 2025. The Company reported net income of $12.27 million, or $0.67 per diluted common share, for the quarter ended September 30, 2025. Net income for the nine months ended September 30, 2025, was $36.33 million or $1.97 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 November 14, 2025, and is expected to be paid on November 28, 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.

Third Quarter 2025 Highlights

Income Statement

• Net income of $12.27 million for the third quarter of 2025, was a decrease of $768 thousand, or 5.89%, from the same quarter of 2024. Net income of $36.33 million for the first nine months of 2025, was a decrease of $2.24 million, or 5.80%, from the same period of 2024.
• When adjusted for merger and non-recurring expenses, net income of $12.90 million was an increase of $495 thousand, or 4.00% from the third quarter of 2024.
• Net interest margin for the third quarter of 2025 remained strong at 4.43% and was an increase of 2 basis points over the same quarter of 2024. The yield on earning assets decreased 10 basis points, or 1.94%, from the same period of 2024 and is primarily attributable to a decrease in average loan balance and interest income. The average balance of loans decreased $116.18 million, or 4.73%, with interest income decreasing $1.30 million, or 4.05%. The decrease in interest income on loans was somewhat offset by an increase in interest income on interest-bearing deposits with banks of $144 thousand, or 3.89%. Interest expense on interest-bearing liabilities decreased $896 thousand, which is primarily attributable to a decrease in the average balance of time deposits of $31.42 million, or 12.82%, as well as a decrease in total interest expense of $896 thousand, or 16.91%. Tax equivalent net interest income decreased $293 thousand, or 0.92%, compared to the same quarter of 2024.
• Net interest income after provision for loan losses increased $1.06 million, or 3.52%, compared to the same quarter of 2024. The increase is attributable to a reduction in the allowance for loan losses driven by a $84.78 million loan balance reduction from the December 31, 2024, balance of $2.42 billion.
• Noninterest income increased approximately $437 thousand, or 4.18%, when compared to the same quarter of 2024. The increase is attributable to an increase in service charges on deposits of $859 thousand, or 23.46%, an increase in wealth management fees of $300 thousand, or 28.01%, and a decrease in other operating income of $872 thousand, or 43.12%. Noninterest expense increased $2.10 million, or 8.69%, when compared to the same period of 2024. The increase is attributable to increases in salaries and benefits of $1.22 million, or 9.31%, service fees of $267 thousand, or 10.86%, and merger expense of $787 thousand. The merger expense is related to the forthcoming merger with Hometown Bank, with an anticipated completion date of January 2026.
• Annualized return on average assets ("ROA") was 1.53% for the third quarter of 2025 compared to 1.60% for the same period of 2024. ROA for the nine months ended September 30, 2025, was 1.52% compared to 1.60% for the same period of 2024. Annualized return on average common equity ("ROE") was 9.58% for the third quarter of 2025 compared to 10.04% for the same period of 2024. ROE was 9.64% for the nine months ended September 30, 2025, compared to 10.08% for the same period of 2024. Additionally, return on average tangible common equity continues to remain strong at 13.82% for the third quarter of 2025.

Balance Sheet and Asset Quality

• Consolidated assets totaled $3.19 billion on September 30, 2025.
• Consolidated loan balances decreased $84.78 million, or 3.51%, and securities available for sale decreased $38.53 million, or 22.69%, from December 31, 2024. Deposits decreased $60.65 million, or 2.25%, which was due to a decrease in interest and noninterest-bearing demand deposits and declining higher-rate time deposits. Stockholder equity decreased $15.67 million, or 2.98%, 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 $50.25 million, or 13.31%.
• The Company's average loan-to-deposits ratio of 89.38%, on September 30, 2025, continues to represent a stable utilization of deposit funding.
• The Company did not repurchase any common shares during the third quarter of 2025. However, 50,338 shares have been repurchased in 2025 at an aggregate cost of $1.85 million. In comparison, during the third quarter of 2024, the Company purchased 12,854 common shares for $469 thousand, contributing to a total of 257,294 shares repurchased in the first nine months of 2024 at a total cost of $8.72 million.
• Total non-performing assets as of September 30, 2025, were $16.90 million, compared with $20.54 million as of December 31, 2024, and $20.28 million as of September 30, 2024. The Company has realized a declining trend in non-performing assets since December 31, 2024.
• Non-performing loans to total loans decreased to 0.71%; a 0.11% reduction when compared with the same quarter of 2024. The Company experienced net charge-offs for the third quarter of 2025 of $1.42 million, or 0.24% of annualized average loans, compared to net charge-offs of $1.13 million, or 0.18%, of annualized average loans for the same period in 2024.
• The allowance for credit losses to total loans was 1.36% on September 30, 2025, compared to 1.44% on December 31, 2024, and 1.44% on September 30, 2024.
• Book value per share on September 30, 2025, was $ 27.89, a decrease of $0.84 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 52 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of September 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 $1.75 billion in combined assets as of September 30, 2025. The Company reported consolidated assets of $3.19 billion as of September 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)
		Three Months Ended																				Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,
(Amounts in thousands, except share and per share data)		2025				2025				2025				2024				2024				2025				2024
Interest income
Interest and fees on loans		$	30,805			$	30,637			$	30,669			$	31,637			$	32,120			$	92,111			$	98,234
Interest on securities			1,050				1,029				1,238				1,447				1,070				3,317				3,979
Interest on deposits in banks			3,844				3,722				3,262				3,348				3,702				10,828				7,497
Total interest income			35,699				35,388				35,169				36,432				36,892				106,256				109,710
Interest expense
Interest on deposits			4,402				4,731				4,871				5,099				5,298				14,004				14,540
Interest on borrowings			-				-				-				-				-				-				35
Total interest expense			4,402				4,731				4,871				5,099				5,298				14,004				14,575
Net interest income			31,297				30,657				30,298				31,333				31,594				92,252				95,135
Provision for credit losses			-				(285	)			321				1,082				1,360				36				2,515
Net interest income after provision			31,297				30,942				29,977				30,251				30,234				92,216				92,620
Noninterest income			10,889				10,340				10,229				10,337				10,452				31,458				29,053
Noninterest expense			26,279				25,455				24,944				24,107				24,177				76,679				72,460
Income before income taxes			15,907				15,827				15,262				16,481				16,509				46,995				49,213
Income tax expense			3,641				3,581				3,444				3,441				3,476				10,666				10,649
Net income		$	12,266			$	12,246			$	11,818			$	13,040			$	13,033			$	36,329			$	38,564
Earnings per common share
Basic		$	0.67			$	0.67			$	0.64			$	0.71			$	0.71			$	1.98			$	2.10
Diluted		$	0.67			$	0.67			$	0.64			$	0.71			$	0.71			$	1.97			$	2.09
Cash dividends per common share
Regular			0.31				0.31				0.31				0.31				0.31				0.93				0.89
Special cash dividend			-				-				2.07				-				-				2.07				-
Weighted average shares outstanding
Basic			18,314,865				18,295,465				18,324,760				18,299,612				18,279,612				18,311,661				18,366,249
Diluted			18,400,289				18,400,793				18,451,321				18,418,441				18,371,907				18,417,066				18,432,023
Performance ratios
Return on average assets			1.53	%			1.53	%			1.49	%			1.60	%			1.60	%			1.52	%			1.60	%
Return on average common equity			9.58	%			9.84	%			9.49	%			9.89	%			10.04	%			9.64	%			10.08	%
Return on average tangible common equity(1)			13.82	%			14.32	%			13.79	%			14.12	%			14.46	%			13.97	%			14.61	%

_____________

(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
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,
(Amounts in thousands)		2025				2025				2025				2024				2024				2025				2024
Noninterest income
Wealth management		$	1,371			$	1,222			$	1,162			$	1,251			$	1,071			$	3,755			$	3,234
Service charges on deposits			4,520				4,120				3,836				3,613				3,661				12,476				10,399
Other service charges and fees			3,847				3,791				3,340				3,575				3,697				10,978				10,817
Other operating income			1,151				1,207				1,891				1,898				2,023				4,249				4,603
Total noninterest income		$	10,889			$	10,340			$	10,229			$	10,337			$	10,452			$	31,458			$	29,053
Noninterest expense
Salaries and employee benefits		$	14,351			$	14,349			$	13,335			$	13,501			$	13,129			$	42,035			$	38,201
Occupancy expense			1,508				1,290				1,576				1,329				1,270				4,374				3,957
Furniture and equipment expense			1,502				1,587				1,575				1,562				1,574				4,664				4,806
Service fees			2,728				2,475				2,484				2,305				2,461				7,687				7,337
Advertising and public relations			939				1,154				1,055				1,165				967				3,148				2,696
Professional fees			293				360				372				295				221				1,025				923
Amortization of intangibles			433				526				524				535				536				1,483				1,596
FDIC premiums and assessments			362				361				362				365				365				1,085				1,098
Merger expense			787				-				-				-				-				787				-
Litigation expense			-				-				-				-				-				-				1,800
Other operating expense			3,376				3,353				3,661				3,050				3,654				10,391				10,046
Total noninterest expense		$	26,279			$	25,455			$	24,944			$	24,107			$	24,177			$	76,679			$	72,460

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited)
		Three Months Ended																				Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,
(Amounts in thousands, except per share data)		2025				2025				2025				2024				2024				2025				2024
Adjusted Net Income for diluted earnings per share		$	12,266			$	12,246			$	11,818			$	13,040			$	13,033			$	36,329			$	38,564
Non-GAAP adjustments:
Merger expense			787				-				-				-				-				787				-
Litigation expense			-				-				-				-				-				-				1,800
Other items(1)			-				-				-				-				(825	)			-				(825	)
Total adjustments			787				-				-				-				(825	)			787				975
Tax effect			152				-				-				-				(198	)			152				234
Adjusted earnings, non-GAAP		$	12,901			$	12,246			$	11,818			$	13,040			$	12,406			$	36,964			$	39,305
Adjusted diluted earnings per common share, non-GAAP		$	0.70			$	0.67			$	0.64			$	0.71			$	0.68			$	2.01			$	2.13
Performance ratios, non-GAAP
Adjusted return on average assets			1.60	%			1.53	%			1.49	%			1.60	%			1.53	%			1.54	%			1.63	%
Adjusted return on average common equity			10.08	%			9.84	%			9.49	%			9.89	%			9.56	%			9.81	%			10.27	%
Adjusted return on average tangible common equity (2)			14.53	%			14.32	%			13.79	%			14.12	%			13.77	%			14.21	%			14.89	%

________________

(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 September 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)		$	2,339,631			$	30,897				5.24	%		$	2,455,807			$	32,201				5.22	%
Securities available for sale			130,187				1,070				3.26	%			133,654				1,099				3.27	%
Interest-bearing deposits			343,541				3,845				4.44	%			270,440				3,701				5.44	%
Total earning assets			2,813,359				35,812				5.05	%			2,859,901				37,001				5.15	%
Other assets			377,244												371,358
Total assets		$	3,190,603											$	3,231,259
Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits		$	657,223			$	196				0.12	%		$	656,780			$	234				0.14	%
Savings deposits			895,925				3,225				1.43	%			886,766				3,735				1.68	%
Time deposits			213,601				981				1.82	%			245,020				1,329				2.16	%
Total interest-bearing deposits			1,766,749				4,402				0.99	%			1,788,566				5,298				1.18	%
Borrowings
Federal funds purchased			-				-				-				-				-				0.00	%
Retail repurchase agreements			1,159				-				0.06	%			1,054				-				0.05	%
Total borrowings			1,159				-				0.06	%			1,054				-				0.05	%
Total interest-bearing liabilities			1,767,908				4,402				0.99	%			1,789,620				5,298				1.18	%
Noninterest-bearing demand deposits			868,489												877,472
Other liabilities			46,321												47,892
Total liabilities			2,682,718												2,714,984
Stockholders' equity			507,885												516,275
Total liabilities and stockholders' equity		$	3,190,603											$	3,231,259
Net interest income, FTE(1)						$	31,410											$	31,703
Net interest rate spread											4.06	%											3.97	%
Net interest margin, FTE(1)											4.43	%											4.41	%

________________

(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 $405 thousand and $592 thousand for the three months ended September 30, 2025 and 2024, respectively.

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
		Nine Months Ended September 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)		$	2,366,151			$	92,385				5.22	%		$	2,501,209			$	98,479				5.26	%
Securities available for sale			135,900				3,384				3.33	%			172,331				4,073				3.16	%
Interest-bearing deposits			324,625				10,828				4.46	%			182,773				7,499				5.48	%
Total earning assets			2,826,676				106,597				5.04	%			2,856,313				110,051				5.15	%
Other assets			376,317												372,663
Total assets		$	3,202,993											$	3,228,976
Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits		$	657,916			$	554				0.11	%		$	662,433			$	570				0.11	%
Savings deposits			894,049				9,857				1.47	%			875,797				10,730				1.64	%
Time deposits			226,690				3,593				2.12	%			247,088				3,240				1.75	%
Total interest-bearing deposits			1,778,655				14,004				1.05	%			1,785,318				14,540				1.09	%
Borrowings
Federal funds purchased			-				-				-				839				35				5.52	%
Retail repurchase agreements			1,174				-				0.06	%			1,061				-				0.05	%
Total borrowings			1,174				-				0.06	%			1,900				35				2.46	%
Total interest-bearing liabilities			1,779,829				14,004				1.05	%			1,787,218				14,575				1.09	%
Noninterest-bearing demand deposits			868,639												883,013
Other liabilities			50,547												47,772
Total liabilities			2,699,015												2,718,003
Stockholders' equity			503,978												510,973
Total liabilities and stockholders' equity		$	3,202,993											$	3,228,976
Net interest income, FTE(1)						$	92,593											$	95,476
Net interest rate spread											3.99	%											4.06	%
Net interest margin, FTE(1)											4.38	%											4.46	%

__________________

(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 $1.39 million and $2.04 million for the nine months ended September 30, 2025 and 2024, respectively.

CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited)
		September 30,				June 30,				March 31,				December 31,				September 30,
(Amounts in thousands, except per share data)		2025				2025				2025				2024				2024
Assets
Cash and cash equivalents		$	427,705			$	395,057			$	414,682			$	377,454			$	315,338
Debt securities available for sale, at fair value			131,314				132,535				129,659				169,849				166,669
Loans held for investment, net of unearned income			2,331,305				2,353,277				2,382,699				2,416,089				2,444,113
Allowance for credit losses			(31,597	)			(33,020	)			(33,784	)			(34,825	)			(35,118	)
Loans held for investment, net			2,299,708				2,320,257				2,348,915				2,381,264				2,408,995
Premises and equipment, net			47,522				48,023				48,780				48,735				49,654
Other real estate owned			264				455				298				521				346
Interest receivable			9,121				8,787				9,306				9,207				9,883
Goodwill			143,946				143,946				143,946				143,946				143,946
Other intangible assets			11,531				11,964				12,490				13,014				13,550
Other assets			118,502				119,990				117,697				117,226				115,980
Total assets		$	3,189,613			$	3,181,014			$	3,225,773			$	3,261,216			$	3,224,361
Liabilities
Deposits
Noninterest-bearing		$	865,554			$	873,677			$	893,794			$	883,499			$	869,723
Interest-bearing			1,765,039				1,761,687				1,790,683				1,807,748				1,789,530
Total deposits			2,630,593				2,635,364				2,684,477				2,691,247				2,659,253
Securities sold under agreements to repurchase			1,429				1,016				908				906				954
Interest, taxes, and other liabilities			46,866				41,805				43,971				42,671				43,460
Total liabilities			2,678,888				2,678,185				2,729,356				2,734,824				2,703,667
Stockholders' equity
Common stock			18,315				18,311				18,327				18,322				18,291
Additional paid-in capital			169,569				169,358				169,867				169,752				168,691
Retained earnings			330,895				324,307				317,728				349,489				342,121
Accumulated other comprehensive loss			(8,054	)			(9,147	)			(9,505	)			(11,171	)			(8,409	)
Total stockholders' equity			510,725				502,829				496,417				526,392				520,694
Total liabilities and stockholders' equity		$	3,189,613			$	3,181,014			$	3,225,773			$	3,261,216			$	3,224,361
Shares outstanding at period-end			18,314,905				18,311,232				18,326,657				18,321,795				18,290,938
Book value per common share		$	27.89			$	27.46			$	27.09			$	28.73			$	28.47
Tangible book value per common share(1)			19.40				18.95				18.55				20.16				19.86

___________________

(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)		2025				2025				2025				2024				2024
Allowance for Credit Losses
Balance at beginning 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
Total allowance for credit losses beginning of period			33,339				34,096				35,166				35,559				35,326
Provision for credit losses:
(Recovery of ) provision for credit losses - loans			-				(292	)			350				1,182				1,360
(Recovery of) provision for credit losses - loan commitments			-				7				(29	)			(100	)			-
Total provision for credit losses - loans and loan commitments			-				(285	)			321				1,082				1,360
Charge-offs			(2,015	)			(1,509	)			(1,998	)			(2,005	)			(1,799	)
Recoveries			592				1,037				607				530				672
Net charge-offs			(1,423	)			(472	)			(1,391	)			(1,475	)			(1,127	)
Balance at end of period:
Allowance for credit losses - loans			31,597				33,020				33,784				34,825				35,118
Allowance for credit losses - loan commitments			319				319				312				341				441
Ending balance		$	31,916			$	33,339			$	34,096			$	35,166			$	35,559
Nonperforming Assets
Nonaccrual loans		$	16,514			$	18,084			$	19,974			$	19,869			$	19,754
Accruing loans past due 90 days or more			125				568				117				149				176
Modified loans past due 90 days or more not included in nonaccrual			-				-				-				-				-
Total nonperforming loans			16,639				18,652				20,091				20,018				19,930
OREO			264				455				298				521				346
Total nonperforming assets		$	16,903			$	19,107			$	20,389			$	20,539			$	20,276
Additional Information
Total modified loans		$	2,291			$	2,129			$	2,124			$	2,260			$	2,320
Asset Quality Ratios
Nonperforming loans to total loans			0.71	%			0.79	%			0.84	%			0.83	%			0.82	%
Nonperforming assets to total assets			0.53	%			0.60	%			0.63	%			0.63	%			0.63	%
Allowance for credit losses to nonperforming loans			189.90	%			177.03	%			168.15	%			173.97	%			176.21	%
Allowance for credit losses to total loans			1.36	%			1.40	%			1.42	%			1.44	%			1.44	%
Annualized net charge-offs to average loans			0.24	%			0.08	%			0.24	%			0.24	%			0.18	%

FOR MORE INFORMATION, CONTACT:

David D. Brown

(276) 326-9000