First Community earnings rose in the third quarter of 2026, with net income increasing to $15.42 million from $12.27 million a year earlier. The bank holding company also declared a quarterly cash dividend of $0.33 per share.

Key Takeaways

  • Third-quarter diluted earnings were $0.81 per share.
  • The Hometown Bancshares acquisition contributed to growth in average earning assets.
  • The dividend is expected to be paid on November 27, 2026.

First Community earnings and interest income

First Community Bankshares reported unaudited results on October 27 for the quarter ended September 30, 2026. Adjusted net income, excluding merger-related and other non-recurring items, was $14.74 million, up 14.23% from a year earlier. Adjusted earnings are a non-GAAP measure and supplement reported results.

For the first nine months of 2026, net income reached a record $49.96 million, or $2.63 per diluted share. Significant non-recurring pre-tax items during that period included a $10.38 million gain on the sale of the company’s stake in Bearing Insurance and $2.31 million in merger-related costs.

The third-quarter net interest margin widened to 4.46% from 4.43% a year earlier. The company said higher average earning assets and lower funding costs primarily drove an increase in tax-equivalent net interest income.

Loan growth and credit quality

First Community completed its acquisition of Hometown Bancshares in the first quarter of 2026. The company attributed growth in average earning assets associated with the acquisition as the primary reason for higher net interest income after the provision for loan losses.

The loan portfolio grew $162.66 million, or 7.03%, from the end of 2025. Excluding Hometown, it decreased approximately $8.38 million, or 0.36%. Consolidated assets totaled $3.63 billion at September 30.

Non-performing loans were 0.64% of total loans at September 30, down from 0.71% a year earlier. Third-quarter net charge-offs were $696,000, compared with $1.42 million in the same quarter of 2025.

Dividend dates

The $0.33 quarterly dividend is payable to shareholders of record on November 13, 2026, and is expected to be paid on November 27. The company said 2026 marks its 41st consecutive year of regular dividends to common shareholders.

Read More News

More FinanceVelix news

Disclaimer

This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.