First Community Bankshares (FCBC) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $12.25M ($0.67 per diluted share), down 3.47% year-over-year; six-month net income was $24.06M ($1.31 per share), down 5.75% year-over-year.

• Net interest margin for Q2 2025 was 4.37%, but net interest income declined due to lower loan balances and yields.

• Noninterest income rose 10.68% year-over-year, driven by higher service charges on deposits.

• Noninterest expense increased 2.24% year-over-year, mainly from higher salaries and benefits.

• Book value per share at June 30, 2025, was $27.46, down $1.27 from year-end 2024, mainly due to a special cash dividend.

Financial highlights

• Net interest income for Q2 2025 was $30.66M, down from $31.91M in Q2 2024; six-month net interest income was $60.96M, down from $63.54M.

• Noninterest income for Q2 2025 was $10.34M, up from $9.34M in Q2 2024; six-month noninterest income was $20.57M, up from $18.60M.

• Noninterest expense for Q2 2025 was $25.46M, up from $24.90M in Q2 2024; six-month noninterest expense was $50.40M, up from $48.28M.

• Total assets at June 30, 2025, were $3.18B, down 2.46% from December 31, 2024.

• Loans held for investment decreased $62.81M, or 2.60%, from year-end 2024; deposits decreased $55.88M, or 2.08%.

Outlook and guidance

• Management expects continued focus on net interest margin and asset quality amid evolving market and rate conditions.

• The announced acquisition of Hometown Bancshares, Inc. is expected to close in Q1 2026, expanding the company’s footprint.

• Forward-looking statements cite risks from market conditions, credit and interest rate management, expense control, regulatory changes, competition, and geopolitical events.