First Community Bankshares, Inc. reported unaudited first‑quarter 2026 results that surpassed analyst expectations, delivering net income of $12.03 million, or $0.63 per diluted share. Adjusted for merger‑related expenses, the company’s earnings rose to $13.83 million, or $0.73 per diluted share, reflecting the accretive impact of the January 23 acquisition of Hometown Bancshares.
Revenue for the quarter reached $44.75 million, slightly below the consensus estimate of $45.08 million—a miss of $330,000. However, revenue net of interest expense climbed to $44.8 million, beating Street forecasts and underscoring the strength of the bank’s interest‑income generation. Net interest margin expanded to 4.37%, up 3 basis points from the prior year, driven by a higher mix of earning assets and lower funding costs.
The Hometown Bancshares acquisition added $393.81 million in assets and $357.72 million in deposits, boosting consolidated assets to $3.64 billion as of March 31 2026. The integration has already contributed to earnings growth, with merger‑related expenses of $2.31 million offset by the acquisition’s accretive earnings profile. The bank’s disciplined acquisition strategy and focus on the Appalachian region continue to support its growth trajectory.
Comparing to the same quarter last year, net income grew from $11.82 million to $12.03 million, while diluted EPS fell slightly from $0.64 to $0.63. The EPS beat of $0.11 per share over consensus was largely attributable to cost control measures and the positive impact of the Hometown Bancshares deal, which helped offset the one‑time merger expenses. Revenue, though marginally below estimates, remained robust due to steady loan growth and a resilient deposit base.
The bank declared a quarterly cash dividend of $0.31 per share, payable to shareholders of record on May 15 and expected to be paid on May 29. This dividend marks the 41st consecutive year of regular payments and the 16th consecutive year of increases, reinforcing the company’s commitment to returning capital to shareholders.
Investors responded positively to the results, citing the bank’s strong earnings performance, the successful integration of the Hometown Bancshares acquisition, and its long‑standing dividend track record. The company’s guidance for the remainder of the year remains unchanged, reflecting confidence in maintaining profitability amid a stable economic environment.
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