First Community Bankshares, Inc. Announces Fourth Quarter 2025 Results and Quarterly Cash Dividend

Core Viewpoint - First Community Bankshares, Inc. reported a net income of $12.46 million for Q4 2025, reflecting a decrease from the previous year, while also announcing a quarterly cash dividend of $0.31 per share, marking 40 consecutive years of regular dividends and 16 years of increases [1][2]. Financial Performance - The net income for Q4 2025 was $12.46 million, down $575 thousand or 4.41% from Q4 2024. For the full year 2025, net income was $48.79 million, a decrease of $2.81 million or 5.45% from 2024 [7]. - Adjusted for merger and non-recurring expenses, net income for Q4 2025 was $14.16 million, an increase of $1.12 million or 8.56% from Q4 2024 [7]. - The net interest margin for Q4 2025 was 4.53%, up 17 basis points from Q4 2024, with net interest income increasing by $1.03 million or 3.26% [7]. - Noninterest income rose by approximately $1.09 million or 10.57% compared to Q4 2024, driven by increased service charges on deposits and other fees [7]. Capital Management - The company emphasizes maintaining a strong capital base to support growth and intends to return excess capital to shareholders through regular dividends and share repurchases [3]. - In 2025, the company declared two special cash dividends totaling $3.07 per share [2]. Acquisition Activity - On January 23, 2026, the company completed the acquisition of Hometown Bancshares, Inc., which had total assets of approximately $415 million at the end of 2025 [4]. Asset Quality - Total non-performing assets as of December 31, 2025, were $14.15 million, down from $20.54 million a year earlier, indicating a declining trend in non-performing assets [7]. - Non-performing loans to total loans decreased to 0.61%, a reduction of 0.22% compared to Q4 2024 [7]. Balance Sheet Highlights - Consolidated assets totaled $3.26 billion as of December 31, 2025, with a decrease in consolidated loan balances of $101.33 million or 4.19% from the previous year [7]. - Stockholder equity decreased by $25.84 million or 4.91% primarily due to special cash dividends declared in 2025 [7]. - The average loan-to-deposits ratio was 88.81% as of December 31, 2025, indicating stable utilization of deposit funding [7].