First Community Bankshares, Inc. Announces Record Third Quarter 2026 Results and Quarterly Cash Dividend

FCBC posts record profits, strong loan growth, and improved asset quality in Q3 2026.

What the company is saying

First Community Bankshares, Inc. (NASDAQ:FCBC) highlights a record quarterly net income of $15.42 million, or $0.81 per diluted share, for Q3 2026, and a nine-month net income of $49.96 million, both all-time highs for the company. The announcement emphasizes robust year-over-year growth, with Q3 net income up 25.74% and adjusted net income up 14.23% from the prior year. Management attributes these gains to increased average earning assets, a 41.37% surge in loan production, and lower funding costs, as well as the completed acquisition of Hometown Bancshares. The company also calls attention to a $10.38 million gain from the sale of its stake in Bearing Insurance, partially offset by $2.31 million in merger-related costs. The narrative stresses improved efficiency and asset quality, with non-performing loans and net charge-offs both declining. FCBC maintains a confident tone, underlining its 41st consecutive year of dividends and a quarterly dividend of $0.33 per share, payable November 27, 2026.

What the data suggests

The disclosed figures show FCBC is on a clear upward trajectory, with Q3 2026 net income of $15.42 million up from $12.27 million a year earlier, and nine-month net income reaching a record $49.96 million. Adjusted net income for the quarter was $14.74 million, up $1.84 million year-over-year, and for the nine months totaled $42.79 million, up $5.82 million. Net interest margin rose to 4.46%, and net interest income after provision increased $3.89 million, driven by a $390.91 million increase in average earning assets and lower deposit costs. Loan portfolio growth was substantial at $162.66 million, or 7.03% since year-end 2025, with loan production up 41.37% year-over-year. Asset quality improved, as non-performing loans fell to 0.64% of total loans and net charge-offs dropped to $696 thousand from $1.42 million. Book value per share increased 5.60% to $28.83. The company repurchased 504,652 shares for $20.33 million in Q1 2026. These results are supported by comprehensive disclosures, with realised gains from the Bearing Insurance sale and merger costs clearly separated from core performance.

Analysis

The announcement is highly factual and supported by comprehensive, detailed financial disclosures. Nearly all claims are realised and substantiated by numerical data, including net income, EPS, loan growth, asset quality, and capital management actions. The only forward-looking statement is the expected payment date of the declared dividend, which is standard and near-term. There is no evidence of narrative inflation or exaggerated tone; the language is proportionate to the strong operational and financial results reported. Capital outlays, such as the Hometown Bancshares acquisition and share repurchases, are already completed and their impacts are quantified. The benefits of these actions are already reflected in the reported results, with no reliance on long-term, uncertain projections.

Risk flags

• ●Sustained earnings growth is partly reliant on successful integration of Hometown Bancshares; any operational or credit issues from the acquired portfolio could impact future results. The company attributes much of its asset and loan growth to this acquisition, making post-merger performance a key risk area.
• ●Non-recurring items, such as the $10.38 million gain from the Bearing Insurance sale, contributed to headline profits. Future quarters may not benefit from similar one-time gains, so core earnings growth must be maintained to support ongoing performance.
• ●Loan growth and asset expansion have outpaced organic trends, with loan production up 41.37% year-over-year. Rapid expansion can introduce credit and operational risks if underwriting standards are not maintained, especially in a rising rate or slowing economic environment.

Bottom line

FCBC delivers a strong quarter, with record net income, robust loan growth, and improved asset quality, all supported by detailed and transparent financial disclosures. The company's results are driven by both organic growth and the Hometown Bancshares acquisition, as well as a one-time gain from the sale of Bearing Insurance. While the core narrative is credible and most benefits are already realised, investors should watch for sustained organic earnings growth as non-recurring gains fade and integration risks play out. The 41st consecutive dividend and rising book value signal stability, but future performance will depend on maintaining asset quality and capital discipline as the balance sheet expands. The most important takeaway is that FCBC's current financial strength is well-supported, but ongoing results will need to prove that this momentum is sustainable without further one-off boosts.

Announcement summary

(NASDAQ:FCBC) First Community Bankshares, Inc. reported unaudited results for the quarter ended September 30, 2026. The Company posted quarterly net income of $15.42 million, or $0.81 per diluted common share, for Q3 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 declared a quarterly cash dividend of $0.33 per common share, payable to shareholders of record on November 13, 2026, and expected to be paid on November 27, 2026. This marks the 41st consecutive year of regular dividends to common shareholders. Net income for Q3 2026 increased $3.16 million, or 25.74%, compared to $12.27 million for Q3 2025. For the first nine months of 2026, net income increased $13.63 million compared to the first nine months of 2025 and surpassed the previous nine-month record of $40.61 million set in 2021. Adjusted net income for Q3 2026 was $14.74 million, up $1.84 million, or 14.23%, from Q3 2025. Adjusted net income for the first nine months of 2026 totaled $42.79 million, an increase of $5.82 million, or 15.76%, over the same period in 2025. Significant non-recurring pre-tax items in 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. Net interest margin increased 3 basis points to 4.46% for Q3 2026, and 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. 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. Net interest income after provision for loan losses increased $3.89 million, or 12.42%, compared to September 30, 2025, primarily due to the acquisition of Hometown Bancshares completed in Q1 2026. Noninterest income increased $1.76 million, or 16.14%, compared to Q3 2025, mainly from a $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, with salaries and benefits up $955 thousand, other operating expense up $471 thousand, and amortization of intangibles up $401 thousand. Annualized return on average assets (ROA) rose to 1.69% for Q3 2026, and annualized return on average common equity (ROE) increased to 11.23%. Adjusted for merger and non-recurring expenses, ROA was 1.62% and ROE was 10.73%. Return on average tangible common equity was 15.32%. Consolidated assets totaled $3.63 billion at September 30, 2026. The 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%. Loan production for Q3 2026 was $125.59 million, up from $88.84 million in Q3 2025, a 41.37% increase. The allowance for credit losses increased $1.88 million in Q3 2026 compared to December 31, 2025, primarily due to the Hometown transaction. The allowance for credit losses to total loans was 1.32% on September 30, 2026. The Company did not repurchase any common shares in Q3 2026 or Q3 2025, but repurchased 504,652 common shares at a total cost of $20.33 million in Q1 2026. Total non-performing assets declined $1.03 million, or 6.09%, compared to Q3 2025. Non-performing loans as a percentage of total loans improved to 0.64% on September 30, 2026, from 0.71% at September 30, 2025. Net charge-offs for Q3 2026 totaled $696 thousand, or 0.11% of annualized average loans, compared to $1.42 million, or 0.24%, for Q3 2025. Book value per share on September 30, 2026, was $28.83, an increase of $1.53, or 5.60%, from year-end 2025. The Company managed and administered $1.82 billion in combined assets through its Trust Division and First Community Wealth Management as of September 30, 2026.

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