# FIRST COMMUNITY BANKSHARES INC /VA/ (FCBC)

Informational only - not investment advice.

CIK: 0000859070
SIC: 6022 State Commercial Banks
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Depository Institutions](/major-group/60/) > [SIC 6022 State Commercial Banks](/industry/6022/)
Latest 10-K filed: 2026-03-06
SEC page: https://www.sec.gov/edgar/browse/?CIK=859070
Filing source: https://www.sec.gov/Archives/edgar/data/859070/000143774926007180/fcbc20251231c_10k.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-06 · accession 0001437749-26-007180 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000859070.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 142,535,000 USD | 2025 | verified |
| Net income | 48,794,000 USD | 2025 | verified |
| Assets | 3,259,643,000 USD | 2025 | verified |
| Free cash flow | 60,003,000 USD | 2025 | computed |
| Net margin | 34.23% | 2025 | computed |
| Revenue YoY | -2.47% | 2025 | computed |
| ROE | 9.75% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | FCBC | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 34.2% | 21.9% | 95 | 149 |
| Revenue growth | -2.5% | 6.0% | 11 | 148 |
| FCF margin | 42.1% | 23.8% | 94 | 133 |
| ROE | 9.7% | 9.6% | 51 | 149 |
| ROA | 1.5% | 1.1% | 85 | 149 |
| Liabilities / equity | 5.51 | 8.04 | 5 | 149 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6022 State Commercial Banks, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 142535000 | USD | 2025 | 2026-03-06 |
| Net income | 48794000 | USD | 2025 | 2026-03-06 |
| Assets | 3259643000 | USD | 2025 | 2026-03-06 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000859070.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 94,724,000 | 95,308,000 | 98,294,000 | 94,968,000 | 114,036,000 | 105,310,000 | 114,319,000 | 137,165,000 | 146,142,000 | 142,535,000 |
| Net income | 25,126,000 | 21,485,000 | 36,340,000 | 38,802,000 | 35,926,000 | 51,168,000 | 46,662,000 | 48,020,000 | 51,604,000 | 48,794,000 |
| Diluted EPS | 1.45 | 1.26 | 2.18 | 2.46 | 2.02 | 2.94 | 2.82 | 2.72 | 2.80 | 2.65 |
| Operating cash flow | 43,088,000 | 36,370,000 | 49,499,000 | 56,655,000 | 45,844,000 | 48,215,000 | 59,024,000 | 61,828,000 | 57,739,000 | 62,745,000 |
| Capital expenditures | 1,885,000 | 2,354,000 | 2,551,000 | 8,411,000 | 3,195,000 | 3,038,000 | 1,160,000 | 2,770,000 | 2,807,000 | 2,742,000 |
| Dividends paid | 10,396,000 | 11,563,000 | 21,090,000 | 15,060,000 | 17,876,000 | 18,059,000 | 18,515,000 | 21,089,000 | 22,017,000 | 60,600,000 |
| Share buybacks | 23,762,000 | 1,263,000 | 34,412,000 | 16,362,000 | 21,872,000 | 28,882,000 | 21,311,000 | 23,038,000 | 8,717,000 | 1,851,000 |
| Assets | 2,386,398,000 | 2,388,460,000 | 2,244,374,000 | 2,798,847,000 | 3,011,136,000 | 3,194,519,000 | 3,135,572,000 | 3,268,545,000 | 3,261,216,000 | 3,259,643,000 |
| Liabilities | 2,047,341,000 | 2,037,746,000 | 1,911,517,000 | 2,370,028,000 | 2,584,406,000 | 2,766,744,000 | 2,713,587,000 | 2,765,251,000 | 2,734,824,000 | 2,759,096,000 |
| Stockholders' equity | 339,057,000 | 350,714,000 | 332,857,000 | 428,819,000 | 426,730,000 | 427,775,000 | 421,985,000 | 503,294,000 | 526,392,000 | 500,547,000 |
| Free cash flow | 41,203,000 | 34,016,000 | 46,948,000 | 48,244,000 | 42,649,000 | 45,177,000 | 57,864,000 | 59,058,000 | 54,932,000 | 60,003,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 26.53% | 22.54% | 36.97% | 40.86% | 31.50% | 48.59% | 40.82% | 35.01% | 35.31% | 34.23% |
| Return on equity | 7.41% | 6.13% | 10.92% | 9.05% | 8.42% | 11.96% | 11.06% | 9.54% | 9.80% | 9.75% |
| Return on assets | 1.05% | 0.90% | 1.62% | 1.39% | 1.19% | 1.60% | 1.49% | 1.47% | 1.58% | 1.50% |
| Liabilities / equity | 6.04 | 5.81 | 5.74 | 5.53 | 6.06 | 6.47 | 6.43 | 5.49 | 5.20 | 5.51 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/FCBC/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000859070.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.81 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.72 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.55 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 36,105,000 | 14,640,000 | 0.79 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 36,002,000 | 11,784,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 36,029,000 | 12,845,000 | 0.71 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 36,789,000 | 12,686,000 | 0.71 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 36,892,000 | 13,033,000 | 0.71 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 36,432,000 | 13,040,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 35,169,000 | 11,818,000 | 0.64 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 35,388,000 | 12,246,000 | 0.67 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 35,699,000 | 12,266,000 | 0.67 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 36,279,000 | 12,465,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 37,781,000 | 12,027,000 | 0.63 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 39,609,000 | 22,513,000 | 1.19 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from FCBC's latest 10-K: [/company/FCBC/business/](/company/FCBC/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from FCBC's latest 10-K: [/company/FCBC/risk-factors/](/company/FCBC/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/859070/000143774926026523/fcbc20260630_10q.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-07
Report date: 2026-06-30

ITEM 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help the reader understand our financial condition, changes in financial condition, and results of operations. MD&A contains forward-looking statements and should be read in conjunction with our consolidated financial statements, accompanying notes, and other financial information included in this report and our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”). Unless the context suggests otherwise, the terms “First Community,” “Company,” “we,” “our,” and “us” refer to First Community Bankshares, Inc. and its subsidiaries as a consolidated entity.

Executive Overview

First Community Bankshares, Inc. (the “Company”) is a financial holding company, headquartered in Bluefield, Virginia, that provides banking products and services through its wholly owned subsidiary First Community Bank (the “Bank”), a Virginia-chartered banking institution. As of June 30, 2026, the Bank operated 61 branches in Virginia, West Virginia, North Carolina and Tennessee. As of June 30, 2026, full-time equivalent employees, calculated using the number of hours worked, totaled 614.  Our primary source of earnings is net interest income, the difference between interest earned on assets and interest paid on liabilities, which is supplemented by fees for services, commissions on sales, and various deposit service charges. We fund our lending and investing activities primarily through the retail deposit operations of our branch banking network. We invest our funds primarily in loans to retail and commercial customers and various investment securities. Our common stock is traded on the NASDAQ Global Select Market under the symbol FCBC.

The Bank offers trust management, estate administration, and investment advisory services through its Trust Division and wholly owned subsidiary First Community Wealth Management Inc. (“FCWM”). The Trust Division manages inter vivos trusts and trusts under will, develops and administers employee benefit and individual retirement plans, and manages and settles estates. Fiduciary fees for these services are charged on a schedule related to the size, nature, and complexity of the account. Revenues consist primarily of investment advisory fees and commissions on assets under management and administration. As of June 30, 2026, the Trust Division and FCWM managed and administered $1.83 billion in combined assets under various fee-based arrangements as fiduciary or agent. 

Recent Developments 

As described in the Company's Quarterly Report on Form 10Q for the quarter ended March 31, 2026, on January 23, 2026, the Company completed its previously announced merger (the "Merger") with Hometown Bancshares, Inc., a West Virginia corporation headquartered in Middlebourne, West Virginia ("Hometown"), pursuant to an Agreement and Plan of Merger (the "Agreement") dated July 19, 2025, by and between the company and Hometown.  At the Effective Time, Hometown merged with and into the Company, with the Company as the surviving corporation in the Merger.

Acquisition details are described in Note 2, "Acquisitions and Divestitures" of Part I, of this Quarterly Report on Form 10Q.

Critical Accounting Policies

We prepare our consolidated financial statements in accordance with generally accepted accounting principles (“GAAP”) in the U.S. and conform to general practices within the banking industry. Our financial position and results of operations may require management to make significant estimates and assumptions that have a material impact on our financial condition or operating performance. Due to the level of subjectivity and the susceptibility of such matters to change, actual results could differ significantly from management’s assumptions and estimates. Estimates, assumptions, and judgments, which are periodically evaluated, are based on historical experience and other factors, including expectations of future events believed reasonable under the circumstances. These estimates are generally necessary when assets and liabilities are required to be recorded at estimated fair value, when a decline in the value of an asset carried on the financial statements at fair value warrants an impairment write-down or a valuation reserve, or when an asset or liability needs recorded based on the probability of occurrence of a future event. Carrying assets and liabilities at fair value inherently results in more financial statement volatility. Fair values and information used to record valuation adjustments for certain assets and liabilities are based on quoted market prices, when available, or third-party sources. When quoted prices or third-party information is not available, management estimates valuation adjustments primarily through the use of financial modeling techniques and appraisal estimates.

Our accounting policies are fundamental in understanding MD&A and the disclosures presented in Item 1, “Financial Statements,” of this Quarterly Report on Form 10-Q. Our accounting policies are described in detail in Note 1, “Basis of Presentation and Significant Accounting Policies,” of the Notes to Consolidated Financial Statements in Part II, Item 8 of our 2025 Form 10-K. Our critical accounting estimates are detailed in the “Critical Accounting Policies” section in Part II, Item 7 of our 2025 Form 10-K.

38

Table of Contents

Performance Overview

Highlights of our results of operations for the three and six months ended June 30, 2026, and financial condition as of June 30, 2026, include the following:

[[GREPCENT_TABLE]]
[["","\u25cf","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 43.53%, from the same period in 2025."],["","\u25cf","When adjusted for merger and non-recurring items, net income for the second 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 $10.38 million pre-tax gain on the sale of the Company's stake in Bearing Insurance. For the first six months of 2026 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."],["","\u25cf","Net interest margin (FTE), a non-GAAP financial measure, 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, a non-GAAP financial measure, from the second quarter of 2025. The improvement was primarily driven by an increase in the average balance of interest earnings assets and lower funding cost yields. Average earnings assets increased $382.18 million, or 13.52%, from the second quarter of 2025, contributing $4.27 million in additional interest income, while the yield of interest-bearing deposits declined 16 basis points."],["","\u25cf","Net interest income after provision for credit losses increased $3.45 million, or 11.15%, compared to June 30, 2025. The increase was driven by an increase in average earnings assets, a result of last quarter's acquisition of Hometown."],["","\u25cf","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 quarter of 2025. The increase is attributable mostly to increases in salaries and benefits of $778 thousand, or 5.42%, other operating expenses of $627 thousand, or 18.70%, and service fees of $383 thousand, or 15.47%."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","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."],["","\u25cf","When adjusted for merger and non-recurring expenses, ROA was 1.59% and ROE was 10.80% for the second quarter of 2026. Return on average tangible common equity continues to remain strong at 15.58% for the second quarter of 2026."],["","\u25cf","Consolidated assets totaled $3.61 billion at June 30, 2026."],["","\u25cf","The Company's loan portfolio increased $145.00 million, or 6.26%, from year-end 2025. Excluding the Hometown transaction, 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."],["","\u25cf","Deposits increased $331.26 million, or 12.34%. Excluding the Hometown transaction, deposits decreased $26.46 million, or 0.99%, from December 31, 2025."],["","\u25cf","The Company did not repurchase any common shares in the second quarter of 2026; however, 504,652 common shares at a total cost of $20.33 million were repurchased during the first quarter of 2026. The company repurchased 50,338 common shares during the second quarter of 2025 at a cost of $1.85 million."],["","\u25cf","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."],["","\u25cf","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."],["","\u25cf","Book value per share on June 30, 2026, was $28.52, an increase of $1.22, or 4.47%, from year-end 2025."]]
[[/GREPCENT_TABLE]]

39

Table of Contents

Results of Operations

Net Income

The following table presents the changes in net income and related information for the periods indicated:

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/859070/000143774926007180/fcbc20251231c_10k.htm
Complete FY 2025 MD&A: /company/FCBC/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-03-06
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help the reader understand our financial condition, changes in financial condition, and results of operations. MD&A contains forward-looking statements and should be read in conjunction with our consolidated financial statements, accompanying notes, and other financial information included in this report.

Executive Overview

First Community Bankshares, Inc. is a financial holding company, headquartered in Bluefield, Virginia, that provides banking products and services through its wholly owned subsidiary First Community Bank (the “Bank”), a 151 year-old Virginia-chartered banking institution. Unless the context suggests otherwise, the terms “First Community,” “Company,” “we,” “our,” and “us” refer to First Community Bankshares, Inc. and its subsidiaries as a consolidated entity.  As of December 31, 2025, the Bank operated 52 branches in Virginia, West Virginia, North Carolina and Tennessee. Our primary source of earnings is net interest income, the difference between interest earned on assets and interest paid on liabilities, which is supplemented by fees for services, commissions on sales, and various deposit service charges. We fund our lending and investing activities primarily through the retail deposit operations of our branch banking network supplemented by retail and wholesale repurchase agreements and Federal Home Loan Bank (“FHLB”) borrowings. We invest our funds primarily in loans to retail and commercial customers and various investment securities.

The Bank offers trust management, estate administration, and investment advisory services through its Trust Division and wholly owned subsidiary First Community Wealth Management (“FCWM”). The Trust Division manages inter vivos trusts and trusts under will, develops and administers employee benefit and individual retirement plans, and manages and settles estates. Fiduciary fees for these services are charged on a schedule related to the size, nature, and complexity of the account. Revenues consist primarily of commissions on assets under management and investment advisory fees. As of December 31, 2025, the Trust Division and FCWM managed and administered $1.79 billion in combined assets under various fee-based arrangements as fiduciary or agent.

On January 23, 2026, the Company completed its previously announced merger (the “Merger”) with Hometown Bancshares, Inc. a West Virginia corporation headquartered in Middlebourne, West Virginia (“Hometown”), pursuant to an Agreement and Plan of Merger (the “Agreement”) dated July 19, 2025, by and between the company and Hometown.  At the Effective Time, Hometown merged with and into the Company, with the Company as the surviving corporation in the Merger.  For additional information, see Note 24, “Subsequent Events,” to the Consolidated Financial Statements in Item 8, of this report.

20

Table of Contents

Critical Accounting Policies

Our consolidated financial statements are prepared in conformity with generally accepted accounting principles (“GAAP”) in the U.S. and prevailing practices in the banking industry. Our accounting policies, as presented in Note 1, “Basis of Presentation and Significant Accounting Policies,” to the Consolidated Financial Statements in Item 8 of this report are fundamental in understanding MD&A and the disclosures presented in Item 8, “Financial Statements and Supplementary Data,” of this report. Management may be required to make significant estimates and assumptions that have a material impact on our financial condition or operating performance. Due to the level of subjectivity and the susceptibility of such matters to change, actual results could differ significantly from management’s assumptions and estimates. Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions, and estimates used, we have identified the allowance for loan losses and goodwill as the accounting areas that require the most subjective or complex judgments or are the most susceptible to change.

Allowance for Credit Losses or "ACL"

The ACL reflects management’s estimate of losses that will result from the inability of our borrowers to make required loan payments. Management uses a systematic methodology to determine its ACL for loans held for investment and certain off-balance-sheet credit exposures. Management considers the effects of past events, current conditions, and reasonable and supportable forecasts on the collectability of the loan portfolio. The Company’s estimate of its ACL involves a high degree of judgment; therefore, management’s process for determining expected credit losses may result in a range of expected credit losses. It is possible that others, given the same information, may at any point in time reach a different reasonable conclusion. The Company’s ACL recorded in the balance sheet reflects management’s best estimate of expected credit losses. The Company recognizes in net income the amount needed to adjust the ACL for management’s current estimate of expected credit losses. See Note 1 – "Basis of Presentation - Significant Accounting Policies" in this Annual Report on Form 10-K for further detailed descriptions of our estimation process and methodology related to the ACL. See also Note 6 — "Allowance for Credit Losses" in this Annual Report on Form 10-K, “Allowance for Credit Losses” in this MD&A. 

The Company uses a number of economic variables to estimate the allowance for credit losses, with the most significant driver being a forecast of the national unemployment rate. In the
December 31, 2025, estimate, the Company assumed an unemployment forecast of 
approximately 4.5%, compared to the range of
4.0% to 4.3% utilized in the
December 31, 2024, estimate.  Based on a sensitivity analysis as of
December 31, 2025, an increase of 1% in the unemployment forecast would result in an increase in the allowance for credit losses of approximately 9.3% 

Business Combinations

The Company accounts for business combinations using the acquisition method of accounting as outlined in using Topic 805 of the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). Under this method, all identifiable assets acquired, including purchased loans, and liabilities assumed are recorded at fair value. Any excess of the purchase price over the fair value of net assets acquired is recorded as goodwill. In instances where the price of the acquired business is less than the net assets acquired, a gain on the purchase is recorded. Fair values are assigned based on quoted prices for similar assets, if readily available, or appraisals by qualified independent parties for relevant asset and liability categories. Certain financial assets and liabilities are valued using discount models that apply current discount rates to streams of cash flow. Valuation methods require assumptions, which can result in alternate valuations, varying levels of goodwill or bargain purchase gains, or amortization expense or accretion income. Management must make estimates for the useful or economic lives of certain acquired assets and liabilities that are used to establish the amortization or accretion of some intangible assets and liabilities, such as core deposits. Fair values are subject to refinement for up to one year after the closing date of the acquisition as additional information about the closing date fair values becomes available. Acquisition and divestiture activities are included in the Company’s consolidated results of operations from the closing date of the transaction. Acquisition and divestiture related costs are recognized in noninterest expense as incurred.

21

Table of Contents

Goodwill 

Goodwill is tested for impairment annually, on October 31st, with additional reviews performed quarterly or more frequently if events or circumstances indicate there may be impairment.  We have one reporting unit, Community Banking.  If we elect to perform a qualitative assessment, we evaluate factors such as macroeconomic conditions, industry and market considerations, overall financial performance, changes in stock price, and progress towards stated objectives in determining if it is more likely than not that the fair value of our reporting unit is less than its carrying amount. If we conclude that it is more likely than not that the fair value of our reporting unit is less than its carrying amount, a quantitative test is performed; otherwise, no further testing is required. The quantitative test consists of comparing the fair value of our reporting unit to its carrying amount, including goodwill. If the fair value of our reporting unit is greater than its book value, no goodwill impairment exists. If the carrying amount of our reporting unit is greater than its calculated fair value, a goodwill impairment charge is recognized for the difference. We performed a quantitative assessment for the annual test on October 31, 2025, which resulted in no goodwill impairment. For additional information, see Note 8, “Goodwill and Other Intangible Assets,” to the Consolidated Financial Statements in Item 8 of this report.

Non-GAAP Financial Measures

In addition to financial statements prepared in accordance with GAAP, we use 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 report include certain financial measures presented on a fully taxable equivalent (“FTE”) basis. While we believe certain non-GAAP financial measures enhance the understanding of our 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. The reconciliations of non-GAAP to GAAP measures are presented below.

We believe FTE basis is the preferred industry measurement of net interest income and provides better comparability between taxable and tax exempt amounts. We use this non-GAAP financial measure to monitor net interest income performance and to manage the composition of our balance sheet. FTE basis adjusts for the tax benefits of income from certain tax exempt loans and investments using the federal statutory income tax rate of 21%. The following table reconciles net interest income and margin, as presented in our consolidated statements of income, to net interest income on a FTE basis for the periods indicated:

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,"],["","","2025","","","2024","","","2023"],["(Amounts in thousands)"],["Net interest income, GAAP","","$","124,613","","","$","126,468","","","$","127,684"],["FTE adjustment(1)","","","449","","","","451","","","","454"],["Net interest income, FTE","","$","125,062","","","$","126,919","","","$","128,138"],["Net interest margin, GAAP","","","4.40","%","","","4.42","%","","","4.43","%"],["FTE adjustment(1)","","","0.02","%","","","0.02","%","","","0.02","%"],["Net interest margin, FTE","","","4.42","%","","","4.44","%","","","4.45","%"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["(1)","FTE basis of 21%."]]
[[/GREPCENT_TABLE]]

22

Table of Contents

Performance Overview

Highlights of our results of operations in 2025, and financial condition as of December 31, 2025, include the following:

[[GREPCENT_TABLE]]
[["","\u25cf","Annual net income of $48.79 million, or $2.65 per diluted common share was earned in 2025; a decrease of $2.81 million, or 5.45%, compared to 2024."]]
[[/GREPCENT_TABLE]]

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/FCBC/mda/fy2025/
All MD&A years: /company/FCBC/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/FCBC/mda/fy2024/): filed 2025-03-07; accession 0001437749-25-006683 (https://www.sec.gov/Archives/edgar/data/859070/000143774925006683/fcbc20241231_10k.htm)
- [FY 2023 MD&A](/company/FCBC/mda/fy2023/): filed 2024-03-08; accession 0001437749-24-007150 (https://www.sec.gov/Archives/edgar/data/859070/000143774924007150/fcbc20231231_10k.htm)
- [FY 2022 MD&A](/company/FCBC/mda/fy2022/): filed 2023-02-22; accession 0001437749-23-004190 (https://www.sec.gov/Archives/edgar/data/859070/000143774923004190/fcbc20221231_10k.htm)
- [FY 2021 MD&A](/company/FCBC/mda/fy2021/): filed 2022-03-03; accession 0001437749-22-005177 (https://www.sec.gov/Archives/edgar/data/859070/000143774922005177/fcbc20211231b_10k.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6022 State Commercial Banks) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/FCBC.md · JSON record: /company/FCBC.json · verified financials: /company/FCBC/financials.json / /company/FCBC/financials.csv · machine TOC for the whole site: /llms.txt