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FOR IMMEDIATE RELEASE : October 26 , 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 Third 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 September 30 , 2021. The Company reported net income of $ 12.61 million , or $ 0.73 per diluted common share , for the quarter ended September 30 , 2021 , which was an increase of $ 0.26 per diluted common share , or 55.32 % , over the same quarter of 2020 . Net income for the nine months ended September 30 , 2021 , was $ 40.61 million , or $ 2.32 per diluted common share , which represents a 69.34 % 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 the same quarter last year . The quarterly dividend is payable to common shareholders of record on November 5 , 2021 , and is expected to be paid on or about November 19 , 2021. 2021 is the 36th consecutive year of regular dividends to common shareholders . Third Quarter 2021 and Current Highlights General 0 Net income for the quarter increased $ 4.34 million to $ 12.61 million compared to the same quarter of 2020. The large increase in net income reflects the reversal of $ 1.39 million in allowance for credit losses for the third quarter of 2021 compared to $ 4.70 million in loan loss provision recorded in the third quarter of 2020. Net income for the nine month period ended September 30 , 2021 , increased $ 16.24 million compared to the same period of 2020 . Similarly , for the nine - month period , a reversal of $ 7.63 million in the allowance for credit losses for 2021 compared to $ 12.03 million in loan loss provision for the same period in 2020 accounts for a large part of the increase in net 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 , versus prior year provisioning driven by the pandemic . 0 0 During the third quarter , the Company repurchased 277,386 common shares for $ 8.46 million . Year - to - date the Company has repurchased 726,686 common shares for $ 21.43 million . The Company terminated its last loss share agreement with the FDIC and received a payment of $ 176 thousand in consideration . The termination eliminates the FDIC guarantee on particular loan losses associated with Waccamaw Bank and largely removes future responsibility related to the agreement . Income Statement 0 0 0 0 Diluted earnings per share increased $ 0.26 to $ 0.73 compared to the same quarter of 2020. Diluted earnings per share for the nine - month period increased $ 0.95 to $ 2.32 compared to 2020 . Due to continued improving economic forecasts , as well as strong credit quality metrics , the Company released allowance for credit losses for the quarter resulting in a reversal of $ 1.39 million in the provision for credit losses ; a significant improvement from the $ 4.70 million loan loss provision recorded in the third quarter of 2020 amidst general economic slowdowns and market conditions resulting from the COVID - 19 pandemic . For the nine - month period , the Company reversed $ 7.63 million compared to $ 12.03 million in loan loss provision recorded for the same period in 2020 . Annualized return on average equity increased to 11.65 % compared to 7.83 % over the same quarter of 2020 , and annualized return on average equity for the first nine months increased to 12.70 % compared to 7.76 % for the same period last year . Annualized return on average assets increased to 1.59 % compared to 1.11 % over the same quarter of 2020 , while year - to - date annualized return on average assets increased to 1.74 % compared to 1.14 % for the same period of 2020 . 1