First Community Bankshares, Inc. Announces Record Third Quarter 2026 Results and Quarterly Cash Dividend
GlobeNewswire | First Community Bankshares, Inc.
Today at 8:10pm UTC
BLUEFIELD, Va., Oct. 27, 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 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 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
(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.
