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FOR IMMEDIATE RELEASE : April 27 , 2021 First Community Bankshares , Inc. NEWS RELEASE Exhibit 99.1 FOR MORE INFORMATION , CONTACT : David D. Brown ( 276 ) 326-9000 First Community Bankshares , Inc. Announces Record First Quarter Results and Quarterly Cash Dividend Bluefield , Virginia - First Community Bankshares , Inc. ( NASDAQ : FCBC ) ( www.firstcommunitybank.com ) ( the " Company " ) today reported its unaudited results of operations and other financial information for the quarter ended March 31 , 2021. The Company reported record quarterly net income of $ 14.60 million , or $ 0.82 per diluted common share , for the quarter ended March 31 , 2021 , which was an increase of $ 0.38 per diluted common share , or 86.36 % , over the same quarter of 2020 . The Company also declared a quarterly cash dividend to common shareholders of twenty - five cents ( $ 0.25 ) per common share . The quarterly dividend is payable to common shareholders of record on May 7 , 2021 , and is expected to be paid on or about May 21 , 2021. 2021 is the 36th consecutive year of regular dividends to common shareholders . First Quarter 2021 and Current Highlights General • Net income for the quarter increased $ 6.73 million to $ 14.60 million compared to the same quarter of 2020. The large increase includes the reversal of $ 4.00 million in allowance for credit losses due to improved economic forecasts from those seen at year - end 2020 . • Effective January 1 , 2021 , the Company adopted CECL and recorded an additional allowance for credit loss for loans of $ 13.11 million , deferred tax assets of $ 1.81 million , an additional reserve for unfunded commitments of $ 509 thousand , and an adjustment to retained earnings of $ 5.87 million . • On January 26 , 2021 , the Board of Directors approved a new plan to repurchase , on the open market at prevailing prices , up to 2.4 million shares of the Company's common stock through January 26 , 2024. During the quarter , the Company repurchased 187,700 common shares for $ 4.99 million . Income Statement • • Diluted earnings per share increased $ 0.38 to $ 0.82 compared to the same quarter of 2020 . Due to expected growth in the U.S. GDP , improving jobless rates , and other economic indicators , as well as strong asset quality metrics , the Company released a substantial amount of allowance for credit losses for the quarter resulting in a reversal of $ 4.00 million in the provision for credit losses ; a significant improvement from the $ 3.50 million loan loss provision recorded in the first quarter of 2020 at the onset of the COVID - 19 pandemic . • Return on average assets increased to 1.94 % compared to 1.16 % from the same quarter of 2020 ; return on average equity increased to 13.94 % compared to 7.49 % from the same quarter of 2020 as well . Balance Sheet and Asset Quality • Net charge - offs for the first quarter of 2021 were $ 725 thousand and the allowance for credit losses remains very strong at 1.61 % of total loans . • As of March 31 , 2021 , total COVID - 19 loan deferrals stood at $ 17.48 million , down significantly from the peak of $ 436.11 million at June 30 , 2020 . • The SBA had forgiven $ 32.73 million , or 53.58 % , of the Company's first round Paycheck Protection Program loan balances through March 31 , 2021. Current PPP loan balances at March 31 , 2021 , which include second round originations , were $ 50.75 million • Book value per share at March 31 , 2021 , was $ 24.22 , an increase of $ 0.14 from year - end . 1