First Community Bankshares, Inc. (FCBC): History, Ownership, Mission, How It Works & Makes Money

How does a regional bank like First Community Bankshares, Inc. (FCBC) maintain a tight grip on its market while navigating a volatile rate environment? As of September 30, 2025, the company reported consolidated assets of $3.19 billion and a robust net interest margin of 4.43% for the third quarter, which defintely proves its operational efficiency. You have to wonder how they keep delivering, especially when they're also preparing for a merger, which is expected to push their total assets to approximately $3.6 billion with 60 branch locations. We'll break down the core mission, how they generate that $36.33 million in net income over the first nine months of 2025, and what their 40-year dividend streak really tells you about management's long-term strategy.

First Community Bankshares, Inc. (FCBC) History

You need to understand that First Community Bankshares, Inc. (FCBC) is not a new player; its roots run deep, tracing back over a century and a half through a series of strategic mergers. The company's current structure is the result of a deliberate combination of two strong community banking legacies, giving it a stable foundation across the mid-Atlantic region.

Honestly, the story starts with local leaders pooling resources to serve their community, a common origin for banks of this vintage. The modern holding company structure was a key move to facilitate the multi-state expansion you see today.

Given Company's Founding Timeline

Year established

The company's earliest predecessor, Princeton Bank & Trust Co., began operations in 1874.

Original location

The original institution was located in Princeton, West Virginia. The current holding company is headquartered in Bluefield, Virginia.

Founding team members

The initial bank was established by a group of local businesspeople and community leaders in Princeton, West Virginia, whose names are not prominently cited in the modern corporate history, reflecting its community-focused, not individual-driven, origin.

Initial capital/funding

Specific initial capital for the 1874 founding is not publicly detailed, but the modern entity's foundation was secured by the assets of its predecessors, including the Flat Top National Bank of Bluefield, chartered in 1903. The first major acquisition in 1993, People's Bank of Richmond, cost $250,000, showing the early focus on strategic, smaller-scale growth.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory has been shaped by a few critical, transformative decisions, primarily centered on strategic acquisitions and a commitment to shareholder returns.

The 1990 merger of equals was defintely the most important step. It combined the assets of two established regional banks, setting the stage for the holding company model that allowed for efficient multi-state growth across Virginia, West Virginia, North Carolina, and Tennessee.

• Building the Wealth Management Arm: The establishment of First Community Wealth Management and the Trust Division created a vital non-interest income stream, which in Q3 2025 helped noninterest income rise by 4.18% year-over-year.
• Commitment to Dividends: Maintaining a 40th consecutive year of regular dividends to common shareholders as of 2025 signals a strong, stable financial position, which is a major draw for investors.
• The Hometown Bank Merger (2026): The upcoming merger with Hometown Bank, anticipated to close by January 2026, is the next major step, continuing the strategy of consolidating regional market share and driving future asset growth beyond the consolidated assets of $3.19 billion reported as of September 30, 2025.

For a deeper dive into the present-day financial picture, you should check out Breaking Down First Community Bankshares, Inc. (FCBC) Financial Health: Key Insights for Investors. The Q3 2025 net income of $12.27 million, while a slight decrease from the prior year, shows the company's continued ability to generate strong core earnings despite merger-related costs.

First Community Bankshares, Inc. (FCBC) Ownership Structure

First Community Bankshares, Inc. (FCBC) operates as a publicly traded financial holding company, meaning its ownership is distributed among a mix of institutional investors, company insiders, and the general public, with no single entity holding a controlling majority.

This structure ensures a degree of checks and balances, but it also means institutional investment decisions-like those from BlackRock, Inc. or Vanguard Group Inc.-can significantly influence stock price and strategic direction.

First Community Bankshares, Inc.'s Current Status

First Community Bankshares, Inc. is a public company whose common stock is listed on the Nasdaq Global Select Market under the ticker symbol FCBC. This public status subjects the company to rigorous reporting and transparency requirements by the U.S. Securities and Exchange Commission (SEC).

As of November 2025, the company commands a market capitalization of approximately $604.58 million. For context, its consolidated assets totaled $3.19 billion as of September 30, 2025, with net income for the first nine months of the year reaching $36.33 million.

• The company is headquartered in Bluefield, Virginia, and is preparing for a merger with Hometown Bancshares, Inc., expected to be completed by January 2026.

You can dive deeper into who is buying and why by Exploring First Community Bankshares, Inc. (FCBC) Investor Profile: Who's Buying and Why?

First Community Bankshares, Inc.'s Ownership Breakdown

Understanding who owns the stock is key to grasping the company's governance. Institutional investors hold the largest block of shares, but insiders retain a substantial stake, aligning management's interests defintely with shareholder returns.

Here's the quick math: Insiders and institutions collectively control over half the company, at 52.49% of the outstanding shares. This means a few large players and the management team hold significant voting power on key decisions.

First Community Bankshares, Inc.'s Leadership

The company is steered by a seasoned executive team, with the CEO having a tenure of over 12 years, providing stability in a volatile financial sector. The leadership team is responsible for managing the bank's consolidated loan balances, which decreased by $84.78 million, or 3.51%, in the first nine months of 2025.

The key executive leaders as of November 2025 are:

• William P. Stafford II: Chairman and Chief Executive Officer.
• Gary R. Mills CPA: President and Director.
• David D. Brown V, CPA: Chief Financial Officer (CFO).
• Jason R. Belcher CPA: Chief Operating Officer (COO).
• Sarah W. Harmon: Chief Administrative Officer, General Counsel and Corporate Secretary.
• Derek A. Bonnett: Chief Risk Officer (CRO).

The average tenure for the management team is long, about 12.3 years, which suggests a deep understanding of the regional banking market. Their focus now is on integrating the upcoming merger while maintaining the strong return on average tangible common equity, which stood at 13.82% in Q3 2025.

First Community Bankshares, Inc. (FCBC) Mission and Values

First Community Bankshares, Inc. (FCBC) anchors its strategy in a clear, tri-part vision: being the bank, employer, and investment of choice in its operating communities. This focus moves beyond a simple profit motive, aiming for a deep, sustainable connection with customers, employees, and shareholders alike.

For you as an investor, understanding this cultural DNA is key, especially when the company reported net income of $36.33 million for the first nine months of 2025, showing solid financial performance alongside its community commitments. [cite: 6, original search]

First Community Bankshares, Inc.'s Core Purpose

The core purpose defines the company's reason for being, which is the passionate pursuit of excellence in community banking. This means their daily actions must defintely uphold a high standard of service and commitment across their 52 branch locations in Virginia, West Virginia, North Carolina, and Tennessee. [cite: 6, 7, original search]

Official mission statement

The mission statement is built on a four-pillar approach that targets all key stakeholders-customers, team, community, and owners-ensuring a balanced scorecard approach to success. [cite: 1, original search]

• Be the bank whose customers wouldn't think of banking anywhere else. [cite: 1, original search]
• Ensure the team has lifelong opportunities to be the best they can be. [cite: 1, original search]
• Contribute time, talent, and resources to the communities they serve. [cite: 1, original search]
• Consistently strive to preserve and enhance the legacy of shareholders. [cite: 1, original search]

This mission directly supports the company's community banking model, which helped First Community Wealth Management manage and administer $1.75 billion in combined assets as of September 30, 2025. [cite: 6, original search]

Vision statement

The vision is a clear, three-part goal for market leadership and perception, setting the long-term aspiration for the entire organization. [cite: 7, original search]

• Be the bank of choice in their communities. [cite: 7, original search]
• Be the employer of choice in their communities. [cite: 7, original search]
• Be the investment of choice in their communities. [cite: 7, original search]

To achieve this, the company focuses on core values like Integrity (doing what they say), Teamwork (relying on each other), Excellence (exceeding expectations), and Change and Innovation (creating opportunities for improvement). [cite: 1, original search] You can find a deeper dive into these principles here: Mission Statement, Vision, & Core Values of First Community Bankshares, Inc. (FCBC).

First Community Bankshares, Inc. slogan/tagline

First Community Bankshares, Inc. (FCBC) does not use a single, formal, public-facing corporate slogan in the way many larger financial institutions do. Instead, the focus is on the action-oriented core purpose: the passionate pursuit of excellence in community banking. [cite: 7, original search] This approach emphasizes the hands-on, community-focused service that drives their consolidated assets of $3.19 billion. [cite: 6, original search]

First Community Bankshares, Inc. (FCBC) How It Works

First Community Bankshares, Inc. (FCBC) operates as a financial holding company, primarily generating revenue by taking deposits and reinvesting those funds into a diversified loan portfolio, which yielded a strong net interest margin of 4.43% in the third quarter of 2025. The company's core strategy is to be the community-focused bank across its four-state footprint, balancing traditional lending with fee-based wealth management and insurance services.

First Community Bankshares, Inc. (FCBC) Product/Service Portfolio

First Community Bankshares, Inc. (FCBC) Operational Framework

The operational framework is built on a decentralized, community-banking model, with 52 branch locations spanning Virginia, West Virginia, North Carolina, and Tennessee. This local presence is how they defintely maintain deep customer relationships, which is crucial for deposit gathering.

Here's the quick math on how the value chain works:

• Deposit Funding: Local branches gather deposits, which form the base of the company's consolidated assets of $3.19 billion as of September 30, 2025.
• Lending and Income Generation: Funds are deployed into the loan portfolio, with commercial lending being the largest component. The resulting interest income, minus interest expense paid to depositors, drives the net interest income, which stood at $92.25 million for the first nine months of 2025.
• Risk Management: The company actively manages its interest rate risk exposure by using interest rate swap contracts to convert fixed-rate loans to floating rates, helping to stabilize earnings in a fluctuating rate environment.
• Fee Income Growth: Noninterest income is generated through service charges on deposits and wealth management fees, strategically offsetting some of the pressure from declining loan balances seen in 2025.

The upcoming merger with Hometown Bank, anticipated in January 2026, is a near-term operational focus, evidenced by the $787 thousand in merger-related expenses in Q3 2025. For a deeper dive into the numbers, check out Breaking Down First Community Bankshares, Inc. (FCBC) Financial Health: Key Insights for Investors.

First Community Bankshares, Inc. (FCBC) Strategic Advantages

FCBC's market success comes from a blend of financial discipline and a community-centric approach that larger regional banks often struggle to replicate. They are a dividend aristocrat in the making.

• Superior Asset Quality: Non-performing assets were reduced to $16.90 million as of September 30, 2025, down from $20.54 million at the end of 2024, demonstrating effective credit risk management.
• Strong Capital Efficiency: The annualized return on average tangible common equity (ROTCE) remained robust at 13.82% for the third quarter of 2025, a key measure of how efficiently the bank uses its core capital.
• Shareholder Commitment: The company has declared a regular cash dividend for 40 consecutive years, with the Q3 2025 dividend of $0.31 per share marking the 15th consecutive year of dividend increases, which signals financial stability to the market.
• Regional Density and Market Focus: Operating in smaller, non-metropolitan markets across four states allows for a high level of customer service and local market knowledge, creating a competitive moat against national competitors.

First Community Bankshares, Inc. (FCBC) How It Makes Money

First Community Bankshares, Inc. (FCBC) primarily makes money the way most community banks do: by borrowing short and lending long-specifically, earning interest income on loans and investment securities that is greater than the interest expense paid on customer deposits and other borrowings. This core banking activity is supplemented by noninterest income from service charges and wealth management fees.

First Community Bankshares' Revenue Breakdown

In the third quarter of 2025, First Community Bankshares generated a total revenue of approximately $46.6 million. The vast majority of this revenue, over 90%, comes from its lending operations, demonstrating its reliance on the traditional banking model's interest rate spread.

Business Economics

The economic engine for First Community Bankshares is its Net Interest Margin (NIM), which measures the profitability of its core lending business. For the third quarter of 2025, the NIM remained strong at 4.43%, an increase of 2 basis points (bps) over the same period in 2024. This slight increase in NIM is a positive sign, but it masks a few underlying pressures.

The yield on earning assets decreased by 10 bps, primarily because the average loan balance fell by approximately $116.18 million, a 4.73% drop, which cut loan interest income. This decline in loan volume is a headwind to overall interest income. However, the bank has been able to offset some of this with an increase in interest income from interest-bearing deposits with banks, which rose by 3.89%, or $144 thousand.

Noninterest income, while a smaller piece of the pie, is a growing, high-quality revenue source. It increased by 4.18% year-over-year in Q3 2025, driven by two key areas:

• Service charges on deposits, which soared by 23.46%.
• Wealth management fees, which grew by 28.01%.

This growth in fee income provides a defintely necessary buffer against fluctuations in the interest rate environment and is a key focus for long-term stability. You can read more about the strategic direction here: Mission Statement, Vision, & Core Values of First Community Bankshares, Inc. (FCBC).

First Community Bankshares' Financial Performance

Looking at the first nine months of 2025, First Community Bankshares reported a net income of $36.33 million. While this is a decrease of 5.80% from the same period in 2024, it's important to note that the net income when adjusted for merger and non-recurring expenses actually increased by 4.00% in Q3 2025, showing underlying operational strength. Here's the quick math on profitability and asset quality:

• Return on Average Assets (ROA): The annualized ROA for Q3 2025 was 1.53%. This is a solid metric for a community bank, indicating efficient use of assets to generate profit.
• Return on Average Common Equity (ROE): This stood at 9.58% for Q3 2025. The Return on Average Tangible Common Equity (ROTCE) was even stronger at 13.82%. This ROTCE is what really matters for shareholders, showing a healthy return on the capital you can physically touch.
• Asset Quality: Non-performing assets (NPAs) declined to $16.90 million as of September 30, 2025, down from $20.54 million at the end of 2024. This reduction in troubled loans is a clear indicator of improving credit quality and prudent risk management.

The company is currently navigating a period of strategic growth, with a merger with Hometown Bank anticipated to complete in January 2026, which is why you see a one-time merger expense of $787 thousand in the Q3 2025 results. The net profit margin for the period ending October 2025 was 30.1%. Your next step should be to monitor the integration progress of the Hometown Bank merger; Finance: track the post-merger efficiency ratio and cost savings by Q2 2026.

First Community Bankshares, Inc. (FCBC) Market Position & Future Outlook

First Community Bankshares, Inc. (FCBC) is strategically positioned as a resilient regional community bank, leveraging its strong capital base and a forthcoming merger to drive near-term growth. The company's future outlook is centered on expanding its footprint in core markets and maintaining its premium valuation through consistent shareholder returns, even as net income for the nine months ended September 30, 2025, showed a slight year-over-year decrease to $36.33 million.

Competitive Landscape

In the regional banking space across Virginia, West Virginia, North Carolina, and Tennessee, First Community Bankshares competes against a spectrum of institutions, from smaller community banks to much larger regional players. The table below uses total assets as a proxy for market presence within a peer group, showing the size disparity you should be aware of.

Opportunities & Challenges

The near-term trajectory for First Community Bankshares is heavily influenced by its recent merger activity and the prevailing interest rate environment. You need to look at how the merger with Hometown Bancshares, Inc. will actually execute, plus how the bank manages its credit risk in a slowing economy.

Industry Position

First Community Bankshares is a well-capitalized regional community bank with a clear focus on its local markets, which is defintely its core strength against the super-regionals like Towne Bank. With consolidated assets of $3.19 billion as of September 30, 2025, the company sits firmly in the mid-range of the community banking segment.

• Capital Management: The company's long-standing practice of returning capital to shareholders-evidenced by 40 consecutive years of regular dividends-makes it an attractive choice for income-focused investors.
• Geographic Density: The planned acquisition of Union Bank, Inc. will increase the branch network to 60 locations across its four-state footprint, enhancing its local density and competitive moats in those specific markets.
• Efficiency: The bank's ability to maintain a strong return on average tangible common equity at 13.82% in Q3 2025 suggests efficient operations and effective asset utilization, which is a key differentiator from less focused competitors.

The strategy is simple: grow through targeted, accretive acquisitions while maintaining strong credit discipline and a high dividend payout. That's a solid, conservative playbook for a bank this size.