First Community Bankshares Posts 17% Adjusted Net Income Growth and $0.31 Dividend
First Community Bankshares reported first-quarter net income of $12.03 million ($0.63 per diluted share), or $13.83 million ($0.73 per share) excluding merger-related and nonrecurring expenses, representing a 17.02% year-over-year adjusted increase. The bank declared a $0.31 quarterly dividend and completed the Hometown Bancshares acquisition adding $393.81 million in assets.
1. First Quarter Earnings Highlights
First Community Bankshares reported net income of $12.03 million, or $0.63 per diluted common share, for the quarter ended March 31, 2026. Excluding merger-related and nonrecurring expenses, adjusted net income was $13.83 million, or $0.73 per share, up 17.02% from the same period in 2025.
2. Dividend and Share Repurchase
The board declared a $0.31 quarterly cash dividend payable May 29, 2026, to shareholders of record on May 15, 2026, marking the 41st consecutive year of regular dividends and the 16th consecutive year of dividend increases. The company resumed share repurchases after completing the Hometown Bancshares acquisition, buying back 504,652 shares for a total of $20.33 million.
3. Hometown Bancshares Acquisition
On January 23, 2026, the company completed the acquisition of Hometown Bancshares, Inc., adding $393.81 million in assets, including $171.04 million in loans and $357.72 million in deposits. The transaction issued 1.03 million common shares, created $1.73 million in goodwill and $8.59 million in other intangible assets, and increased capital by $35.07 million.
4. Balance Sheet and Asset Quality Trends
Average earning assets rose $263.04 million, or 9.26%, driving a $3.05 million (10.02%) increase in tax-equivalent net interest income and lifting net interest margin to 4.37%. Nonperforming loans fell to 0.72% of total loans and net charge-offs improved to 0.12% of average loans, while deposits grew 14.12% year-to-date.