First Community Bankshares (FCBC) investor relations material

Executive summary

• Net income for Q2 2026 reached a record $22.51M, up 83.84% year-over-year, driven by a $10.38M pre-tax gain on the sale of Bearing Insurance and the Hometown Bancshares acquisition.

• Adjusted net income for Q2 2026 was $14.38M, up 17.47% year-over-year, excluding merger and non-recurring items.

• Book value per share increased 4.47% to $28.52 from year-end 2025.

• Declared a quarterly cash dividend of $0.33 per share, a 6.45% increase over last quarter, marking 41 consecutive years of dividends.

Financial highlights

• Net interest income for Q2 2026 was $34.88M, up 13.87% year-over-year; net interest margin (FTE) was 4.38%.

• Noninterest income rose 116.06% to $22.34M in Q2 2026, mainly due to the Bearing Insurance gain.

• Noninterest expense increased 8.29% year-over-year, driven by higher salaries, benefits, and operating expenses.

• Total assets grew 10.68% to $3.61B; loans increased 6.26% to $2.46B; deposits rose 12.34% to $3.02B, primarily from the Hometown acquisition.

• Book value per share rose to $28.52, up 4.47% from year-end 2025.

Outlook and guidance

• Management expects continued strong capital and liquidity positions, with robust risk-based capital ratios and well-capitalized status.

• Forward-looking statements highlight risks from market conditions, regulatory changes, competition, and geopolitical events.

• No material changes to risk factors or outlook were reported for the remainder of 2026.