Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-19297 FIRST COMMUNITY BANKSHARES, INC. (Exact name of registrant as specified in its charter) Virginia 55-0694814 (State or other jurisdiction of inco ...

Financial Performance - Net income increased by $1.39 million, or 15.28%, to $10.45 million compared to the same quarter of 2018[143] - Diluted earnings per share rose by $0.12 to $0.66, reflecting a 22.22% increase compared to the same quarter of 2018[145] - Return on average assets for the quarter increased to 1.89%, while return on average equity rose to 12.57%[145] - Net interest margin increased by 47 basis points to 4.72% compared to the same quarter of 2018[143] - Net interest income for the three months ended June 30, 2019, was $23,213 thousand, compared to $22,488 thousand for the same period in 2018, reflecting an increase of 3.23%[149] - Noninterest income increased by $1.63 million, or 23.28%, in Q2 2019, primarily due to $2.03 million received from litigation settlements[162] - Net interest income on a GAAP basis increased by $727 thousand, or 3.27%, in Q2 2019 compared to Q2 2018, while on a FTE basis, it increased by $725 thousand, or 3.22%[153] Asset and Liability Management - Total earning assets decreased to $1,973,304 thousand from $2,120,146 thousand, a decline of approximately 6.93% year-over-year[149] - Total assets decreased to $2,221,574 thousand from $2,372,989 thousand, a decline of about 6.36% year-over-year[149] - Total liabilities decreased to $1,878,963 thousand from $2,032,407 thousand, a decline of approximately 7.57% year-over-year[149] - Stockholders' equity decreased to $333,595 thousand from $340,582 thousand, a decline of about 2.91% year-over-year[149] - Average earning assets decreased by $146.84 million, or 6.93%, primarily due to a decrease in average loans and the investment portfolio[154] - Average interest-bearing liabilities decreased by $167.54 million, or 10.75%, primarily due to a decline in average borrowings[155] Loan and Deposit Trends - Demand deposits decreased to $454,246 thousand from $484,776 thousand, a decline of approximately 6.30% year-over-year[149] - Time deposits increased to $429,469 thousand from $477,691 thousand, reflecting a decrease of about 10.08% year-over-year[149] - Average loans decreased by $73.70 million, or 4.11%, with the average loan to deposit ratio decreasing to 92.68% from 93.13% in the same quarter of 2018[154] - Total deposits decreased by $7.71 million, or 0.42%, compared to December 31, 2018, largely due to a $24.30 million decrease in time deposits[198] Nonperforming Assets and Loan Losses - Nonaccrual loans decreased to $16,368 thousand as of June 30, 2019, down from $19,583 thousand in December 31, 2018[186] - Total nonperforming loans were $17,226 thousand as of June 30, 2019, compared to $19,802 thousand in December 31, 2018, indicating a reduction in nonperforming assets[188] - The ratio of nonperforming loans to total loans was 1.02% as of June 30, 2019, down from 1.13% in December 31, 2018[188] - The allowance for loan losses to nonperforming loans ratio was 106.37% as of June 30, 2019, an increase from 90.77% in December 31, 2018[188] - The provision for loan losses increased by $1.09 million, or 220.20%, to $1.59 million in Q2 2019 compared to Q2 2018[160] Capital and Equity - Book value per common share increased by $0.55 to $21.34, and tangible book value per common share increased by $0.43 to a record $15.12 compared to December 31, 2018[143] - Total stockholders' equity increased by $829 thousand, or 0.25%, to $333.69 million as of June 30, 2019, from $332.86 million as of December 31, 2018[205] - Common equity Tier 1 ratio improved to 14.29% as of June 30, 2019, from 13.72% as of December 31, 2018[209] - Total risk-based capital ratio increased to 15.42% as of June 30, 2019, compared to 14.79% as of December 31, 2018[209] Cash Flow and Investments - Cash and cash equivalents increased by $79.61 million for the six months ended June 30, 2019, compared to a decrease of $49.99 million for the same period of the prior year[204] - Net cash provided by investing activities increased by $124.70 million, driven by proceeds from repayment of loans and maturities in investment portfolios[204] - Net cash provided by operating activities was $25.45 million for the six months ended June 30, 2019, compared to $21.14 million for the same period in 2018[207] Regulatory and Economic Environment - The effective federal statutory income tax rate was reduced from 35% to 21% due to the Tax Cuts and Jobs Act enacted on December 22, 2017[171] - The Federal Open Market Committee set the benchmark federal funds rate to a range of 225 to 250 basis points as of June 30, 2019[214] - The company continues to meet all capital adequacy requirements and is classified as well-capitalized under regulatory frameworks[209]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-19297 FIRST COMMUNITY BANKSHARES, INC. (Exact name of registrant as specified in its charter) Virginia 55-0694814 (State or other jurisdiction of incorpor ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 Commission file number 000-19297 FIRST COMMUNITY BANKSHARES, INC. (Exact name of registrant as specified in its charter) Virginia 55-0694814 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) P.O. Box 989 Bluefield, Virginia 24605-098 ...