Key Highlights

  • Diluted EPS was $0.81 versus $0.67 a year earlier, and adjusted EPS was $0.78 versus $0.70.
  • Net income was $15.42 million, up 25.74% from $12.27 million.
  • The net interest margin was 4.46% versus 4.43%, with net interest income of $35.87 million.
  • Nonperforming assets fell 6.09% to $15.87 million, and the allowance was 1.32% of loans.
  • The quarterly dividend rose to $0.33 from $0.31.

First Community Bankshares Earnings: Did Profit and Margin Both Improve?

First Community Bankshares (NASDAQ:FCBC) reported third-quarter results on Tuesday, October 27, with net income of $15.42 million, or $0.81 per diluted share, versus $12.27 million, or $0.67. Adjusted net income was $14.74 million, or $0.78 per share, up 14.23% from $0.70. The screen estimate was $0.77, so adjusted EPS was a penny above it as screened.

Second-quarter net income of $22.51 million, or $1.19, included a $10.38 million gain on the sale of the Bearing Insurance stake. Nine-month net income was a record $49.96 million, with diluted EPS of $2.63 versus $1.97. The release gave no formal guidance.

First Community Bankshares Margin: Why Did Net Interest Income Grow 14.7%?

Net interest income was $35.87 million versus $31.30 million a year ago and $34.88 million in the second quarter. On a taxable-equivalent basis it rose $4.62 million, or 14.72%, which the company attributed to higher average earning assets and lower funding costs. The net interest margin was 4.46% versus 4.43%, and the spread widened 10 basis points to 4.16%.

Growth follows the Hometown Bancshares acquisition, completed in the first quarter of 2026. Noninterest income was $12.65 million, up 16.14%, while noninterest expense was $27.94 million, up 6.32%, on salaries and benefits (up $955 thousand), other operating expense (up $471 thousand) and intangibles amortization (up $401 thousand). There was no merger expense, versus $2.31 million in the first quarter.

Return on assets was 1.69% (adjusted 1.62%), and return on equity was 11.23% (adjusted 10.73%). The efficiency ratio was about 57.6% as calculated from GAAP figures, versus about 62.3% a year ago.

First Community Bankshares Credit: How Strong Is the Loan Book After Hometown?

The provision was $680 thousand versus none a year ago and $483 thousand in the second quarter. Net charge-offs were $696 thousand, or 0.11% annualized, versus $1.42 million, or 0.24%. Nonperforming loans were 0.64% of loans versus 0.71%, and nonperforming assets of $15.87 million fell for a second straight quarter.

The allowance was 1.32% of loans and 206.47% of nonperforming loans. Loans were $2.48 billion, up $162.66 million, or 7.03%, from year-end 2025, though excluding Hometown they fell about $8.38 million. Loan production was $125.59 million, up 41.37%.

Deposits were $3.03 billion versus $2.63 billion a year ago, including $974.26 million of noninterest-bearing balances.

First Community Bankshares Capital: What Is the Dividend Record?

Total assets were $3.63 billion and stockholders' equity was $545.27 million. Book value per share was $28.83, up 5.60% from year-end, and tangible book value per share was $20.22 versus $19.40.

The board declared a regular quarterly dividend of $0.33, up from $0.31, payable November 27, 2026 to holders of record on November 13. It marks the 41st consecutive year of regular dividends. There were no repurchases in the third quarter; the company bought 504,652 shares for $20.33 million in the first quarter.

What to Watch Next at First Community Bankshares After Hometown?

The questions ahead are whether organic loans, which were slightly negative excluding Hometown, resume growth after production rose 41.37%, and whether the 4.46% margin and falling nonperforming assets hold. The dividend payment on November 27 is the next dated event.