First Community Bankshares (FCBC) investor relations material

Executive summary

• Net income for Q1 2026 was $12.03 million ($0.63 per diluted share), up 1.77% year-over-year; adjusted net income (excluding merger/non-recurring expenses) was $13.83 million ($0.73 per diluted share), up 17.02% year-over-year.

• Completed the acquisition of Hometown Bancshares, Inc. on January 23, 2026, adding $393.81 million in assets and expanding consolidated assets to $3.64 billion.

• Repurchased 504,652 shares for $20.33 million after resuming buybacks post-acquisition.

• Declared a quarterly cash dividend of $0.31 per share, marking the 41st consecutive year of regular dividends and 16th consecutive year of increases.

• Loan portfolio increased 6.10% from year-end 2025, primarily due to the Hometown acquisition.

Financial highlights

• Net interest margin was 4.37% in Q1 2026, up 3 basis points year-over-year; net interest income after provision for loan losses rose 9.80%.

• Net interest income (GAAP) was $33.29 million, up from $30.30 million in Q1 2025.

• Noninterest income rose 12.00% year-over-year, mainly from higher service charges and fees.

• Noninterest expense increased 15.21% year-over-year, primarily due to $2.31 million in merger expenses and higher salaries/benefits.

• Tax-equivalent net interest income increased by $3.05 million (10.02%) year-over-year, driven by higher average earning assets and lower funding costs.

Outlook and guidance

• Management expects continued focus on integration of the Hometown acquisition and maintaining strong capital and liquidity positions.

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

• No material changes to risk factors or forward-looking statements since the last annual report.