First Community Bankshares, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income for the quarter ended September 30, 2026, was $15.42 million ($0.81 diluted EPS), a 25.74% increase from $12.27 million in the same period of 2025.
• Net income for the nine months ended September 30, 2026, reached a record $49.96 million ($2.63 diluted EPS), up $13.63 million from the prior year period.
• Adjusted net income for the third quarter was $14.74 million, a 14.23% increase year-over-year; adjusted net income for the nine months was $42.79 million, a 15.76% increase.
• Net interest margin increased 3 basis points to 4.46% in Q3 2026 from 4.43% in Q3 2025.
• Net interest income increased 14.72% to $35.87 million in Q3 2026, driven by a $390.91 million (13.89%) increase in average earning assets and a 15 basis point decline in the cost of interest-bearing deposits.
• Noninterest income increased 16.14% to $12.65 million in Q3 2026, while noninterest expense rose 6.32% to $27.94 million.
• Annualized return on average assets (ROA) improved to 1.69% in Q3 2026 from 1.53% in Q3 2025; return on average common equity (ROE) rose to 11.23% from 9.58%.
• Consolidated assets totaled $3.63 billion as of September 30, 2026.
• Book value per share was $28.83 as of September 30, 2026, a 5.60% increase from year-end 2025.

Guidance and Future Outlook:

• No forward guidance or specific future outlook metrics were provided in the press release.

Business Segments and Product Lines:

• The loan portfolio increased $162.66 million (7.03%) from year-end 2025; excluding the Hometown Bancshares acquisition, the portfolio decreased approximately $8.38 million.
• Loan production for Q3 2026 was $125.59 million, a 41.37% increase compared to $88.84 million in Q3 2025.
• Wealth management assets managed by First Community Wealth Management totaled $1.82 billion as of September 30, 2026.
• The company operates 61 branch locations across Virginia, West Virginia, North Carolina, and Tennessee.
• Significant non-recurring items included a $10.38 million gain on the sale of the Company's stake in Bearing Insurance and $2.31 million in merger-related costs.

Market and Competitive Landscape:

• No specific market share data or competitive landscape analysis was included in the press release.

Risks and Challenges:

• The press release notes standard forward-looking statement risks including changes in business/market conditions, asset/liability management, credit risk, interest rate risk, expense growth, regulatory changes, competition, and geopolitical events.
• No specific current risks or challenges faced by the company were detailed beyond the general forward-looking statement disclaimer.

Management Commentary and Tone:

• Management highlighted record net income for the nine-month period and the 41st consecutive year of regular dividends.
• The tone reflects confidence in asset quality, noting a second consecutive quarterly decline in total non-performing assets and a 7 basis point improvement in non-performing loans to total loans.

Other Key Points:

• The Board declared a quarterly cash dividend of $0.33 per common share, payable November 27, 2026, to shareholders of record on November 13, 2026.
• The acquisition of Hometown Bancshares was completed in the first quarter of 2026, contributing to growth in earning assets and loan production.
• The company repurchased 504,652 common shares for $20.33 million in the first quarter of 2026; no shares were repurchased in the third quarter.
• Non-performing assets declined $1.03 million (6.09%) compared to the same period in 2025.
• Net charge-offs for Q3 2026 were $696 thousand (0.11% of annualized average loans), down from $1.42 million (0.24%) in Q3 2025, primarily due to $2.01 million of significant charge-offs in the prior year period.
• The allowance for credit losses to total loans was 1.32% as of September 30, 2026, compared to 1.33% at year-end 2025 and 1.36% in Q3 2025.