First Community Bankshares reports Q2 net income of $12.25 million

BLUEFIELD, Va. - First Community Bankshares, Inc. (NASDAQ:FCBC), a regional bank with a market capitalization of $743 million, reported net income of $12.25 million, or $0.67 per diluted common share, for the second quarter ended June 30, 2025, the company announced Tuesday.

The quarterly results represent a decrease of $440,000, or 3.47%, compared to the same quarter of 2024. For the first six months of 2025, the company reported net income of $24.06 million, or $1.31 per diluted share, down 5.75% from the same period last year. According to InvestingPro data, the company currently trades at a P/E ratio of 14.8x, which appears high relative to its near-term earnings growth prospects.

First Community’s board declared a quarterly cash dividend of $0.31 per common share, payable to shareholders of record on August 8, 2025, with payment expected on August 22, 2025. This marks the company’s 40th consecutive year of regular dividends to common shareholders. InvestingPro analysis shows the stock offers a 3.04% dividend yield, with dividend payments maintained for 32 consecutive years and growing at 6.9% over the last year.

The company’s net interest margin remained strong at 4.37% for the second quarter, though interest income decreased by $1.40 million compared to the same period in 2024. This decline was primarily due to a $2.05 million decrease in loan interest income, reflecting a reduction in average loan balances of $134.85 million.

Total assets stood at $3.18 billion at quarter-end. Loans decreased by $62.81 million, or 2.60%, from December 31, 2024, while deposits decreased by $55.88 million, or 2.08%.

Asset quality metrics remained stable with non-performing loans to total loans at 0.79%, unchanged from the same quarter of 2024. The company experienced net charge-offs of $472,000 for the quarter, representing 0.08% of annualized average loans, an improvement from 0.16% in the second quarter of 2024.

During the quarter, First Community repurchased 50,338 common shares at a cost of $1.85 million. The company was also named a recipient of the 2024 Raymond James Community Bankers Cup, recognizing superior financial performance among the top 10% of the country’s community banks. InvestingPro data reveals the company maintains a "GOOD" overall financial health score, with particularly strong metrics in profitability and cash flow management. Additional InvestingPro Tips and detailed financial metrics are available for subscribers.

The information is based on a press release statement from the company.

In other recent news, First Community Bankshares announced its unaudited financial results for the first quarter, ending March 31, 2025. The company reported a net income of $11.82 million, translating to $0.64 per diluted common share. Additionally, First Community declared a quarterly cash dividend of $0.31 per common share, which is scheduled for payment on May 23, 2025. The bank’s net interest margin for the quarter was 4.34%, slightly lower than the previous year due to a decrease in interest income from loans and securities. Meanwhile, First Community Bankshares has also entered into a merger agreement with Hometown Bancshares, valued at approximately $41.5 million. Under this deal, First Community will acquire Hometown and its subsidiary, Union Bank, Inc. Each Hometown share will be converted into 11.706 shares of First Community common stock. These developments reflect the company’s ongoing strategic and financial activities.

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