First Community Bankshares Reports $48.79 Million Net Income for Fiscal Year 2025

First Community Bankshares, Inc. reported a net income of $48.79 million for the fiscal year ending December 31, 2025, translating to $2.65 per diluted share. This represents a decrease of 5.45% from the previous year’s net income of $51.60 million. Adjusted for merger and non-recurring expenses, the adjusted net income was $51.12 million, reflecting a smaller decline of 2.34%. The company’s net interest income after provision for loan losses increased by $1.67 million, primarily due to a reduction in the allowance for loan losses, which decreased by 11.67% to $4.06 million. The net interest margin remained stable at 4.42%, with a slight decline of 0.45% compared to 2024.

In terms of operational changes, First Community Bankshares completed its acquisition of Hometown Bancshares, Inc. on January 23, 2026, which added eight branches in West Virginia to its existing network of 60 branches across Virginia, West Virginia, North Carolina, and Tennessee. The merger incurred $2.91 million in expenses, contributing to an overall increase in noninterest expenses, which rose by 8.01% to $104.30 million. The company’s total assets as of December 31, 2025, were reported at $3.26 billion, a slight decrease of 0.05% from the previous year.

The bank's customer engagement metrics showed a decrease in total loans held for investment, which fell by 4.19% to $2.31 billion, while total deposits decreased by 0.22% to $2.69 billion. The allowance for credit losses to total loans was reported at 1.33%, down from 1.44% in 2024, indicating improved credit quality. Non-performing loans to total loans decreased to 0.61%, a reduction of 0.22% from the previous year, reflecting the bank's strong credit performance.

Looking ahead, First Community Bankshares expressed a commitment to organic growth supplemented by strategic acquisitions, as evidenced by the recent merger. The company remains focused on maintaining adequate capital levels, with a Common Equity Tier 1 ratio of 16.10%, well above the regulatory minimum of 4.50%. The bank's management believes that its current capital levels exceed the required amounts to be considered well-capitalized under Basel III regulations. The outlook for 2026 includes expectations for continued stability in net interest margins and a focus on enhancing noninterest income through increased service charges and fees.