FCBC · First Community Bankshares, Inc.

First Community Bankshares reported solid Q1 2026 results with GAAP net income of $12.03 million, a 1.77% increase from Q1 2025, driven by higher net interest income up 10.02% to $33.294 million on a 4.37% margin (up 3 bps YoY) from expanded average earning assets (+9.26% or $263.04 million) and lower deposit costs (yield down 19 bps). Noninterest income rose 12% to $11.457 million on stronger service charges, offsetting a 15.21% increase in noninterest expense to $28.737 million, primarily from $2.31 million merger costs tied to the January 23, 2026 completion of Hometown Bancshares acquisition. This deal added $393.81 million in assets, $171.04 million loans, and $357.72 million deposits, boosting consolidated assets to $3.64 billion despite organic loan contraction excluding the deal. Adjusted metrics excluding merger expenses show net income of $13.83 million and 1.60% ROA, highlighting underlying strength. Asset quality improved with non-performing loans at 0.72% (down 0.12% YoY) and lower charge-offs. Capital return remains robust with a $0.31 dividend (41st consecutive year) and resumption of buybacks (504,652 shares for $20.33 million), supporting book value per share growth to $27.64.