First Community Bancshare | 8-K: FY2026 Q2 Revenue: USD 61.95 M

Revenue: As of FY2026 Q2, the actual value is USD 61.95 M.

EPS: As of FY2026 Q2, the actual value is USD 1.19, beating the estimate of USD 0.94.

EBIT: As of FY2026 Q2, the actual value is USD 29.17 M.

Earnings Announcement

First Community Bankshares, Inc. announced its earnings for the second quarter of 2026 on July 21, 2026 .

Quarterly Cash Dividend

The company declared a quarterly cash dividend of $0.33 per common share, payable on or about August 21, 2026, to shareholders of record on August 7, 2026 . This represents an increase of $0.02, or 6.45%, over the previous quarter and marks the 41st consecutive year of regular dividends .

Net Income

First Community Bankshares, Inc. reported a record quarterly net income of $22.51 million for the quarter ended June 30, 2026, an increase of $10.27 million, or 83.84%, compared to $12.25 million in the second quarter of 2025 . Net income for the first six months of 2026 was $34.54 million, an increase of $10.48 million or 43.54% from the same period in 2025 . Adjusted for merger-related and other non-recurring items, net income for the second quarter of 2026 was $14.38 million, an increase of $2.14 million, or 17.47%, compared to the same period in 2025 . Adjusted net income for the first six months of 2026 totaled $28.05 million, an increase of $3.99 million, or 16.57%, from the same period of 2025 .

Net Interest Income

Net interest margin remained strong at 4.38% in the second quarter of 2026, up one basis point from the second quarter of 2025 . The net interest rate spread increased nine basis points to 4.06%, driving a $4.27 million, or 13.87%, increase in tax-equivalent net interest income . Net interest income after provision for loan losses increased $3.45 million, or 11.15%, compared to June 30, 2025 . Total net interest income was $34,875 thousand for Q2 2026, compared to $30,657 thousand for Q2 2025 . For the six months ended June 30, total net interest income was $68,169 thousand in 2026, up from $60,955 thousand in 2025 .

Noninterest Income and Expense

Noninterest income increased approximately $12.00 million, or 116.06%, in the second quarter of 2026 compared to the same quarter of 2025, primarily due to a $10.38 million gain on the sale of the Company’s portion of Bearing Insurance . Total noninterest income was $22,341 thousand for Q2 2026, compared to $10,340 thousand for Q2 2025 . For the six months ended June 30, total noninterest income was $33,798 thousand in 2026, up from $20,569 thousand in 2025 .

Noninterest expense increased $2.11 million, or 8.29%, in the second quarter of 2026 compared to the same period of 2025, mainly due to increases in salaries and benefits ($778 thousand or 5.42%), other operating expense ($627 thousand or 18.70%), and service fees ($383 thousand or 15.47%) . Total noninterest expense was $27,565 thousand for Q2 2026, compared to $25,455 thousand for Q2 2025 . For the six months ended June 30, total noninterest expense was $56,302 thousand in 2026, up from $50,399 thousand in 2025 . Pre-tax merger-related costs for the first six months of 2026 were $2.31 million .

Profitability Ratios

Annualized return on average assets (ROA) was 2.49% for the second quarter of 2026, compared to 1.53% for the same period of 2025 . Annualized return on average common equity (ROE) was 16.90% for the second quarter of 2026, compared to 9.84% for the same period of 2025 . When adjusted for merger and non-recurring expenses, ROA was 1.59% and ROE was 10.80% for the second quarter of 2026 . Return on average tangible common equity was 15.58% (adjusted) and 24.39% (GAAP) for the second quarter of 2026 .

Balance Sheet and Asset Quality

Consolidated assets totaled $3.61 billion at June 30, 2026 . The Company’s loan portfolio increased $145.00 million, or 6.26%, from year-end 2025 . Excluding the Hometown acquisition, the loan portfolio decreased approximately $26.05 million, or 1.13% . Loan production for the second quarter of 2026 was $134.45 million, a 70.43% increase compared to $78.89 million for the same quarter in 2025 .

Total non-performing assets declined to $17.15 million as of June 30, 2026, compared to $19.11 million as of June 30, 2025 . Non-performing loans to total loans decreased to 0.70%, a 0.09% reduction compared with the same quarter of 2025 . The Company experienced net charge-offs of $1.3 million, or 0.21%, of annualized average loans for the second quarter of 2026, compared to $472 thousand, or 0.08%, for the same period in 2025 . The allowance for credit losses increased $2.04 million in the second quarter of 2026 compared to December 31, 2025, primarily driven by the $3.21 million impact of the Hometown transaction . The allowance for credit losses to total loans was 1.33% on June 30, 2026, compared to 1.40% on June 30, 2025 .

Share Repurchases

The Company did not repurchase any common shares in the second quarter of 2026; however, 504,652 common shares at a total cost of $20.33 million were repurchased during the first quarter of 2026 .

Book Value

Book value per share on June 30, 2026, was $28.52, an increase of $1.22, or 4.47%, from year-end 2025 .

Outlook / Guidance

The report contains forward-looking statements based on current expectations, which involve risks, uncertainties, and assumptions that could cause actual results to differ materially . These risks include changes in market conditions, challenges in managing asset/liability levels, and difficulties in balancing expense growth with revenue increases . The company does not undertake to update these statements to reflect future circumstances or events .