Earnings release
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Exhibit 99.1 NEWS RELEASE FOR IMMEDIATE RELEASE: FOR MORE INFORMATION, CONTACT: July 21, 2026 David D. Brown (276) 326-9000 First Community Bankshares, Inc. Announces Record Second Quarter 2026 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 June 30, 2026. The Company reported a record quarterly net income of $22.51 million, or $1.19 per diluted common share, for the quarter ended June 30, 2026. Net income for the six months ended June 30, 2026, was $34.54 million or $1.82 per diluted common share. The Company also declared a quarterly cash dividend to common shareholders of thirty-three cents, $0.33, per common share, an increase of $0.02, or 6.45%, over last quarter. The quarterly dividend is payable to common shareholders of record on August 7, 2026, and is expected to be paid on August 21, 2026. This year marks the 41st consecutive year of regular dividends to common shareholders. Second Quarter 2026 Highlights Income Statement o Net income for the second quarter of 2026 reached a record $22.51 million, an increase of $7.87 million over the previous record of $14.64 million reported in the third quarter of 2023, and $10.27 million, or 83.84%, higher than net income of $12.25 million in the second quarter of 2025. Net income of $34.54 million for the first six months of 2026, was an increase of $10.48 million or 43.54%, from the same period in 2025. o When adjusted for merger-related and other non-recurring items, net income for the quarter was $14.38 million, an increase of $2.14 million, or 17.47%, compared to the same period in 2025. The most significant non-recurring item in the second quarter was a $10.39 million pre-tax gain on the sale of the Company's stake in Bearing Insurance. For the first six months of 2026 adjusted net income totaled $28.05 million, an increase of $3.99 million, or 16.57%, from the same time period of 2025. In addition to the Bearing gain, the first six months of 2026 includes pre-tax merger-related costs of $2.31 million. o Net interest margin remained strong at 4.38% in the second quarter of 2026, up one basis point from the second quarter of 2025. Net interest rate spread increased nine basis points to 4.06%, driving a $4.27 million, or 13.87%, increase in tax- equivalent net interest income. The improvement was primarily driven by an increase in the average balance of interest earnings assets and lower funding cost yields. Average earning assets increased $382.18 million, or 13.52%, contributing $4.27 million in additional interest income, while the yield of interest-bearing deposits declined 16 basis points. o Net interest income after provision for loan losses increased $3.45 million, or 11.15%, compared to June 30, 2025. The increase was driven by an increase in average earning assets, a result of last quarter's acquisition of Hometown Bancshares. o Noninterest income increased approximately $12.00 million, or 116.06%, when compared to the same quarter of 2025. The increase is attributable primarily to a gain of $10.38 million on the sale of the Company's portion of Bearing Insurance. Noninterest expense increased $2.11 million, or 8.29%, when compared to the same period of 2025. The increase is attributable mostly to increases in salaries and benefits of $778 thousand, or 5.42%, other operating expense of $627 thousand, or 18.70%, and service fees of $383 thousand, or 15.47%. o Annualized return on average assets ("ROA") was 2.49% for the second quarter of 2026 compared to 1.53% for the same period of 2025. Annualized return on average common equity ("ROE") was 16.90% for the second quarter of 2026 compared to 9.84% for the same period of 2025. o When adjusted for merger and non-recurring expenses, ROA was 1.59% for the second quarter of 2026 and ROE was 10.80%. Return on average tangible common equity continues to remain strong at 15.58% for the second quarter of 2026. Balance Sheet and Asset Quality o Consolidated assets totaled $3.61 billion at June 30, 2026. o The Company's loan portfolio increased $145.00 million, or 6.26% from year-end 2025. Excluding the Hometown acquisition, the loan portfolio decreased approximately $26.05 million, or 1.13%. However, loan production for the second quarter of 2026 was $134.45 million, compared to $78.89 million for the same quarter in 2025, a 70.43% increase. o The Company did not repurchase any common shares in the second quarter of 2026; however, 504,652 common shares at total cost of $20.33 million were repurchased during the first quarter of 2026. The company repurchased 50,338 common
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shares during the second quarter of 2025 at a cost of $1.85 million. o Total non-performing assets as of June 30, 2026, declined to $17.15 million, compared to $19.11 million as of June 30, 2025. o Non-performing loans to total loans decreased to 0.70%, a 0.09% reduction when compared with the same quarter of 2025. The Company experienced net charge-offs for the second quarter of 2026 of $1.3 million, or 0.21%, of annualized average loans, compared to net charge-offs of $472 thousand, or 0.08%, of annualized average loans for the same period in 2025. Significant recoveries, in the amount of $1.04 million were received in the second quarter of 2025 driving the year over year variance. o The allowance for credit losses increased $2.04 million in the second quarter of 2026 compared to December 31, 2025, primarily driven by the $3.21 million impact of the Hometown transaction. The allowance for credit losses to total loans was 1.33% on June 30, 2026, compared to 1.33% on December 31, 2025, and 1.40% on June 30, 2025. o Book value per share on June 30, 2026, was $ 28.52, an increase of $1.22, or 4.47%, from year-end 2025. 1
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Non-GAAP Financial Measures In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this news release include “tangible book value per common share,” “return on average tangible common equity,” “adjusted earnings,” “adjusted diluted earnings per share,” “adjusted return on average assets,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” and certain financial measures presented on a fully taxable equivalent (“FTE”) basis. FTE basis is calculated using the federal statutory income tax rate of 21%. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to that comparable GAAP financial measure can be found in the attached tables to this press release. While the Company believes certain non-GAAP financial measures enhance the understanding of its business and performance, they are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions. About First Community Bankshares, Inc. First Community Bankshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 61 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of June 30, 2026. First Community Bank offers wealth management and investment advice and services through its Trust Division and through its wholly owned subsidiary, First Community Wealth Management, which collectively managed and administered $1.83 billion in combined assets as of June 30, 2026. The Company reported consolidated assets of $3.61 billion as of June 30, 2026. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. Additional investor information is available on the Company’s website at www.firstcommunitybank.com. This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; changes in banking laws and regulations; the degree of competition by traditional and non-traditional competitors; the impact of natural disasters, extreme weather events, military conflict , terrorism or other geopolitical events; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. 2
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, (Amounts in thousands, except share and per share data) 2026 2026 2025 2025 2025 2026 2025 Interest income Interest and fees on loans $ 32,638 $ 31,722 $ 31,232 $ 30,805 $ 30,637 $ 64,360 $ 61,306 Interest on securities 2,106 2,198 1,221 1,050 1,029 4,304 2,267 Interest on deposits in banks 4,865 3,861 3,826 3,844 3,722 8,726 6,984 Total interest income 39,609 37,781 36,279 35,699 35,388 77,390 70,557 Interest expense Interest on deposits 4,734 4,487 3,918 4,402 4,731 9,221 9,602 Total interest expense 4,734 4,487 3,918 4,402 4,731 9,221 9,602 Net interest income 34,875 33,294 32,361 31,297 30,657 68,169 60,955 Provision for credit losses 483 378 36 - (285) 861 36 Net interest income after provision 34,392 32,916 32,325 31,297 30,942 67,308 60,919 Noninterest income 22,341 11,457 11,429 10,889 10,340 33,798 20,569 Noninterest expense 27,565 28,737 27,624 26,279 25,455 56,302 50,399 Income before income taxes 29,168 15,636 16,130 15,907 15,827 44,804 31,089 Income tax expense 6,655 3,609 3,665 3,641 3,581 10,264 7,025 Net income $ 22,513 $ 12,027 $ 12,465 $ 12,266 $ 12,246 $ 34,540 $ 24,064 Earnings per common share Basic $ 1.19 $ 0.64 $ 0.68 $ 0.67 $ 0.67 $ 1.83 $ 1.31 Diluted $ 1.19 $ 0.63 $ 0.68 $ 0.67 $ 0.67 $ 1.82 $ 1.31 Cash dividends per common share Regular 0.31 0.31 0.31 0.31 0.31 0.62 0.62 Special cash dividend - - 1.00 - - - 2.07 Weighted average shares outstanding Basic 18,879,907 18,925,478 18,315,268 18,314,865 18,295,465 18,902,567 18,310,032 Diluted 18,979,314 19,032,945 18,390,550 18,400,289 18,400,793 18,999,498 18,427,503 Performance ratios Return on average assets 2.49% 1.39% 1.53% 1.53% 1.53% 1.95% 1.51% Return on average common equity 16.90% 9.29% 9.63% 9.58% 9.84% 13.15% 9.67% Return on average tangible common equity(1) 24.39% 13.46% 13.80% 13.82% 14.32% 19.01% 14.04% (1)A non-GAAP financial measure defined as net income divided by average stockholders' equity less average goodwill and other intangible assets. 3
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CONDENSED CONSOLIDATED QUARTERLY NONINTEREST INCOME AND EXPENSE (Unaudited) Three Months Ended Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, (Amounts in thousands) 2026 2026 2025 2025 2025 2026 2025 Noninterest income Wealth management $ 1,399 $ 1,299 $ 1,181 $ 1,371 $ 1,222 $ 2,698 $ 2,384 Service charges on deposits 4,431 4,185 4,292 4,520 4,120 8,616 7,956 Other service charges and fees 4,473 3,943 4,046 3,847 3,791 8,416 7,131 (Loss) gain on sale of securities 210 (2) - - - 208 - Other operating income(1) 11,828 2,032 1,911 1,151 1,207 13,860 3,098 Total noninterest income $ 22,341 $ 11,457 $ 11,429 $ 10,889 $ 10,340 $ 33,798 $ 20,569 Noninterest expense Salaries and employee benefits $ 15,127 $ 14,367 $ 14,398 $ 14,351 $ 14,349 $ 29,494 $ 27,684 Occupancy expense 1,529 1,666 1,306 1,508 1,290 3,195 2,866 Furniture and equipment expense 1,576 1,573 1,484 1,502 1,587 3,149 3,162 Service fees 2,858 2,789 2,648 2,728 2,475 5,647 4,959 Advertising and public relations 922 873 923 939 1,154 1,795 2,209 Professional fees 324 238 240 293 360 562 732 Amortization of intangibles 841 846 433 433 526 1,687 1,050 FDIC premiums and assessments 408 415 360 362 361 823 723 Merger expense - 2,310 2,125 787 - 2,310 - Other operating expense 3,980 3,660 3,707 3,376 3,353 7,640 7,014 Total noninterest expense $ 27,565 $ 28,737 $ 27,624 $ 26,279 $ 25,455 $ 56,302 $ 50,399 (1)includes other operating income and expense items, such as the gain from the sale of Bearing Insurance. 4
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RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited) Three Months Ended Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, (Amounts in thousands, except per share data) 2026 2026 2025 2025 2025 2026 2025 Adjusted Net Income for diluted earnings per share $ 22,513 $ 12,027 $ 12,465 $ 12,266 $ 12,246 $ 34,540 $ 24,064 Non-GAAP adjustments: (Gain) loss on sale of securities (210) 2 - - - (208) - Merger expense - 2,310 2,125 787 - 2,310 - Gain on divestiture (10,384) - - - - (10,384) - Other items (1) (77) (216) - - - (293) - Total adjustments (10,671) 2,096 2,125 787 - (8,575) - Tax effect (2,543) 457 434 152 - (2,086) - Adjusted earnings, non-GAAP $ 14,385 $ 13,666 $ 14,156 $ 12,901 $ 12,246 $ 28,051 $ 24,064 Adjusted diluted earnings per common share, non-GAAP $ 0.76 $ 0.72 $ 0.77 $ 0.70 $ 0.67 $ 1.48 $ 1.31 Performance ratios, non-GAAP Adjusted return on average assets 1.59% 1.58% 1.74% 1.60% 1.53% 1.58% 1.51% Adjusted return on average common equity 10.80% 10.56% 10.94% 10.08% 9.84% 10.68% 9.67% Adjusted return on average tangible common equity (2) 15.58% 15.30% 15.67% 14.53% 14.32% 15.44% 14.04% (1)Includes other non-recurring income and expense items, such as BOLI proceeds. (2)A non-GAAP financial measure defined as adjusted earnings divided by average stockholders' equity less average goodwill and other intangible assets. 5
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AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited) Three Months Ended June 30, 2026 2025 Average Average Yield/ Average Average Yield/ (Amounts in thousands) Balance Interest (1) Rate (1) Balance Interest (1) Rate (1) Assets Earning assets Loans(2)(3) $ 2,459,135 $ 32,795 5.35% $ 2,364,362 $ 30,731 5.21% Securities available for sale 243,177 2,118 3.49% 128,457 1,053 3.29% Interest-bearing deposits 506,561 4,866 3.85% 333,872 3,722 4.47% Total earning assets 3,208,873 39,779 4.97% 2,826,691 35,506 5.04% Other assets 417,245 377,879 Total assets $ 3,626,118 $ 3,204,570 Liabilities and stockholders' equity Interest-bearing deposits Demand deposits $ 835,345 $ 570 0.27% $ 657,888 $ 177 0.11% Savings deposits 1,027,941 3,260 1.27% 895,024 3,322 1.49% Time deposits 212,504 891 1.68% 228,485 1,232 2.16% Total interest-bearing deposits 2,075,790 4,721 0.91% 1,781,397 4,731 1.07% Borrowings Federal funds purchased - - - - - - Retail repurchase agreements 2,992 13 1.72% 1,293 - 0.07% Total borrowings 2,992 13 1.72% 1,293 - 0.07% Total interest-bearing liabilities 2,078,782 4,734 0.91% 1,782,690 4,731 1.06% Noninterest-bearing demand deposits 958,302 877,346 Other liabilities 54,601 45,310 Total liabilities 3,091,685 2,705,346 Stockholders' equity 534,433 499,224 Total liabilities and stockholders' equity $ 3,626,118 $ 3,204,570 Net interest income, FTE(1) $ 35,045 $ 30,775 Net interest rate spread 4.06% 3.97% Net interest margin, FTE(1) 4.38% 4.37% (1)Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%. (2)Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual. (3)Interest on loans includes non-cash and accelerated purchase accounting accretion of $372 thousand and $430 thousand for the three months ended June 30, 2026,and 2025, respectively. 6
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AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited) Six Months Ended June 30, 2026 2025 Average Average Yield/ Average Average Yield/ (Amounts in thousands) Balance Interest(1) Rate(1) Balance Interest(1) Rate(1) Assets Earning assets Loans(2)(3) $ 2,446,811 $ 64,650 5.33% $ 2,379,630 $ 61,488 5.21% Securities available for sale 250,856 4,341 3.49% 138,804 2,314 3.36% Interest-bearing deposits 458,716 8,731 3.84% 315,011 6,984 4.47% Total earning assets 3,156,383 77,722 4.97% 2,833,445 70,786 5.04% Other assets 415,245 375,846 Total assets $ 3,571,628 $ 3,209,291 Liabilities and stockholders' equity Interest-bearing deposits Demand deposits $ 807,894 $ 987 0.25% $ 658,268 $ 357 0.11% Savings deposits 1,012,667 6,356 1.27% 893,096 6,633 1.50% Time deposits 214,287 1,856 1.75% 233,343 2,612 2.26% Total interest-bearing deposits 2,034,848 9,199 0.91% 1,784,707 9,602 1.09% Borrowings Federal funds purchased - - - - - - Retail repurchase agreements 2,780 22 1.59% 1,183 - 0.06% Total borrowings 2,780 22 1.59% 1,183 - 0.06% Total interest-bearing liabilities 2,037,628 9,221 0.91% 1,785,890 9,602 1.08% Noninterest-bearing demand deposits 945,763 868,714 Other liabilities 58,531 52,698 Total liabilities 3,041,922 2,707,302 Stockholders' equity 529,706 501,989 Total liabilities and stockholders' equity $ 3,571,628 $ 3,209,291 Net interest income, FTE(1) $ 68,501 $ 61,184 Net interest rate spread 4.05% 3.96% Net interest margin, FTE(1) 4.38% 4.35% (1)Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%. (2)Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual. (3)Interest on loans includes non-cash and accelerated purchase accounting accretion of $861 thousand and $986 thousand for the six months ended June 30, 2026,and 2025, respectively. 7
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CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited) June 30, March 31, December 31, September 30, June 30, (Amounts in thousands, except per share data) 2026 2026 2025 2025 2025 Assets Cash and cash equivalents $ 591,913 $ 600,299 $ 512,240 $ 427,705 $ 395,057 Debt securities available for sale, at fair value 239,050 267,522 132,688 131,314 132,535 Loans held for investment, net of unearned income 2,459,746 2,456,029 2,314,755 2,331,305 2,353,277 Allowance for credit losses (32,654) (33,543) (30,761) (31,597) (33,020) Loans held for investment, net 2,427,092 2,422,486 2,283,994 2,299,708 2,320,257 Premises and equipment, net 50,161 50,204 47,560 47,522 48,023 Other real estate owned 52 - - 264 455 Interest receivable 9,344 9,856 8,720 9,121 8,787 Goodwill 145,672 145,672 143,946 143,946 143,946 Other intangible assets 18,001 18,841 11,098 11,531 11,964 Other assets 126,435 130,067 119,397 118,502 119,990 Total assets $ 3,607,720 $ 3,644,947 $ 3,259,643 $ 3,189,613 $ 3,181,014 Liabilities Deposits Noninterest-bearing $ 973,218 $ 959,555 $ 896,255 $ 865,554 $ 873,677 Interest-bearing 2,043,373 2,104,832 1,789,074 1,765,039 1,761,687 Total deposits 3,016,591 3,064,387 2,685,329 2,630,593 2,635,364 Securities sold under agreements to repurchase 2,924 3,181 1,214 1,429 1,016 Interest, taxes, and other liabilities 49,105 55,985 72,553 46,866 41,805 Total liabilities 3,068,620 3,123,553 2,759,096 2,678,888 2,678,185 Stockholders' equity Common stock 18,903 18,861 18,335 18,315 18,311 Additional paid-in capital 186,291 184,684 170,358 169,569 169,358 Retained earnings 342,103 325,439 319,368 330,895 324,307 Accumulated other comprehensive loss (8,197) (7,590) (7,514) (8,054) (9,147) Total stockholders' equity 539,100 521,394 500,547 510,725 502,829 Total liabilities and stockholders' equity $ 3,607,720 $ 3,644,947 $ 3,259,643 $ 3,189,613 $ 3,181,014 Shares outstanding at period-end 18,902,628 18,861,295 18,334,787 18,314,905 18,311,232 Book value per common share $ 28.52 $ 27.64 $ 27.30 $ 27.89 $ 27.46 Tangible book value per common share(1) 19.86 18.92 18.84 19.40 18.95 (1) A non-GAAP financial measure defined as stockholders' equity less goodwill and other intangible assets, divided by shares outstanding. 8
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SELECTED CREDIT QUALITY INFORMATION (Unaudited) June 30, March 31, December 31, September 30, June 30, (Amounts in thousands) 2026 2026 2025 2025 2025 Allowance for Credit Losses Balance at beginning of period: Allowance for credit losses - loans $ 33,543 $ 30,761 $ 31,597 $ 33,020 $ 33,784 Allowance for credit losses - loan commitments 433 355 319 319 312 Total allowance for credit losses beginning of period 33,976 31,116 31,916 33,339 34,096 Adjustments to beginning balance: Allowance for credit losses - loans - Hometown acquisition - 3,213 - - - Net Adjustments - 3,213 - - - Provision for credit losses: Provision for (recovery of) credit losses - loans 411 300 - - (292) Provision for credit losses - loan commitments 72 78 36 - 7 Total provision for (recovery of) credit losses - loans and loan commitments 483 378 36 - (285) Charge-offs (1,804) (1,379) (1,527) (2,015) (1,509) Recoveries 504 648 691 592 1,037 Net charge-offs (1,300) (731) (836) (1,423) (472) Balance at end of period: Allowance for credit losses - loans 32,654 33,543 30,761 31,597 33,020 Allowance for credit losses - loan commitments 505 433 355 319 319 Ending balance $ 33,159 $ 33,976 $ 31,116 $ 31,916 $ 33,339 Nonperforming Assets Nonaccrual loans $ 16,816 $ 17,672 $ 13,941 $ 16,514 $ 18,084 Accruing loans past due 90 days or more 280 30 212 125 568 Total nonperforming loans 17,096 17,702 14,153 16,639 18,652 OREO 52 - - 264 455 Total nonperforming assets $ 17,148 $ 17,702 $ 14,153 $ 16,903 $ 19,107 Additional Information Total modified loans $ 3,435 $ 2,736 $ 2,442 $ 2,291 $ 2,129 Asset Quality Ratios Nonperforming loans to total loans 0.70% 0.72% 0.61% 0.71% 0.79% Nonperforming assets to total assets 0.48% 0.49% 0.43% 0.53% 0.60% Allowance for credit losses to nonperforming loans 191.00% 189.49% 217.35% 189.90% 177.03% Allowance for credit losses to total loans 1.33% 1.37% 1.33% 1.36% 1.40% Annualized net charge-offs to average loans 0.21% 0.12% 0.14% 0.24% 0.08% 9