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FOR IMMEDIATE RELEASE : July 28 , 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 Second Quarter Results and Increased 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 June 30 , 2021. The Company reported net income of $ 13.40 million , or $ 0.76 per diluted common share , for the quarter ended June 30 , 2021 , which was an increase of $ 0.30 per diluted common share , or 65.22 % , over the same quarter of 2020. Net income for the six months ended June 30 , 2021 was $ 28.01 million or $ 1.59 per diluted common share , which represents a 76.67 % increase in diluted earnings per share compared to the same period of 2020 . The Company also declared a quarterly cash dividend to common shareholders of twenty - seven cents ( $ 0.27 ) per common share , which is an increase of 8.00 % over last quarter and last year . The quarterly dividend is payable to common shareholders of record on August 9 , 2021 , and is expected to be paid on or about August 23 , 2021. 2021 is the 36th consecutive year of regular dividends to common shareholders . Second Quarter 2021 and Current Highlights General 0 Net income for the quarter increased $ 5.17 million to $ 13.40 million compared to the same quarter of 2020. The large increase in net income includes the reversal of $ 2.23 million in allowance for credit losses for the second quarter of 2021. Net income for the six month period increased $ 11.90 million compared to the same period of 2020. Similarly , for the six month period , a reversal of $ 6.23 million in the allowance for credit losses accounts for a large part of the increase in income over the same period in 2020. The decreases in credit loss provisioning are primarily due to significantly improved economic forecasts and GDP growth in the current year , and prior year provisioning driven by the pandemic . 0 During the second quarter , the Company repurchased 261,600 common shares for $ 7.98 million . Year - to - date the Company has repurchased 449,300 common shares for $ 12.96 million . Income Statement 0 0 0 0 0 Diluted earnings per share increased $ 0.30 to $ 0.76 compared to the same quarter of 2020. Diluted earnings per share for the six month period increased $ 0.69 to $ 1.59 compared to 2020 . Due to forecasted continued improving jobless rates and other economic indicators , as well as strong credit quality metrics , the Company released a substantial amount of allowance for credit losses for the quarter resulting in a reversal of $ 2.23 million in the provision for credit losses ; a significant improvement from the $ 3.83 million loan loss provision recorded in the second quarter of 2020 at the onset of the COVID - 19 pandemic . For the six month period , the Company reversed $ 6.23 million compared to $ 7.33 million in loan loss provision recorded for the same period in 2020 . Annualized return on average equity increased to 12.55 % compared to 7.97 % from the same quarter of 2020 , and return on on average equity for the first six months increase to 13.24 % compared to 7.73 % from the same period last year . Annualized return on average assets increased to 1.70 % compared to 1.15 % from the same quarter of 2020 , while year - to - date return on average assets increased to 1.82 % compared to 1.15 % for the same period of 2020 . Non - interest income for the second quarter of 2021 increased $ 1.88 million , or 27.25 % , compared to the prior year . Year - to - date non - interest income increased 13.17 % to $ 16.37 million compared to last year . Both increases are largely attributable to the more vibrant state of local economies with increased customer activity compared with last spring . Other income includes $ 946 thousand of accelerated amortization that eliminates the carrying value of the indemnification asset with no anticipated claims in the future . 1