BLUEFIELD, Va., July 21, 2026 (GLOBE NEWSWIRE) — First Community Bankshares, Inc. (NASDAQ: FCBC) (www.firstcommunitybank.com) (the “Company”) today reported its unaudited results of operations and other financial information for the quarter ended June 30, 2026. The Company reported a record quarterly net income of $22.51 million, or $1.19 per diluted common share, for the quarter ended June 30, 2026. Net income for the six months ended June 30, 2026, was $34.54 million or $1.82 per diluted common share.
The Company also declared a quarterly cash dividend to common shareholders of thirty-three cents, $0.33, per common share, an increase of $0.02, or 6.45%, over last quarter. The quarterly dividend is payable to common shareholders of record on August 7, 2026, and is expected to be paid on August 21, 2026. This year marks the 41st consecutive year of regular dividends to common shareholders.
Second Quarter 2026 Highlights
Income Statement
- Net income for the second quarter of 2026 reached a record $22.51 million, an increase of $7.87 million over the previous record of $14.64 million reported in the third quarter of 2023, and $10.27 million, or 83.84%, higher than net income of $12.25 million in the second quarter of 2025. Net income of $34.54 million for the first six months of 2026, was an increase of $10.48 million or 43.54%, from the same period in 2025.
- When adjusted for merger-related and other non-recurring items, net income for the quarter was $14.38 million, an increase of $2.14 million, or 17.47%, compared to the same period in 2025. The most significant non-recurring item in the second quarter was a $10.39 million pre-tax gain on the sale of the Company’s stake in Bearing Insurance. For the first six months of 2026 adjusted net income totaled $28.05 million, an increase of $3.99 million, or 16.57%, from the same time period of 2025. In addition to the Bearing gain, the first six months of 2026 includes pre-tax merger-related costs of $2.31 million.
- Net interest margin remained strong at 4.38% in the second quarter of 2026, up one basis point from the second quarter of 2025. Net interest rate spread increased nine basis points to 4.06%, driving a $4.27 million, or 13.87%, increase in tax-equivalent net interest income. The improvement was primarily driven by an increase in the average balance of interest earnings assets and lower funding cost yields. Average earning assets increased $382.18 million, or 13.52%, contributing $4.27 million in additional interest income, while the yield of interest-bearing deposits declined 16 basis points.
- Net interest income after provision for loan losses increased $3.45 million, or 11.15%, compared to June 30, 2025. The increase was driven by an increase in average earning assets, a result of last quarter’s acquisition of Hometown Bancshares.
- Noninterest income increased approximately $12.00 million, or 116.06%, when compared to the same quarter of 2025. The increase is attributable primarily to a gain of $10.38 million on the sale of the Company’s portion of Bearing Insurance. Noninterest expense increased $2.11 million, or 8.29%, when compared to the same period of 2025. The increase is attributable mostly to increases in salaries and benefits of $778 thousand, or 5.42%, other operating expense of $627 thousand, or 18.70%, and service fees of $383 thousand, or 15.47%.
- Annualized return on average assets (“ROA”) was 2.49% for the second quarter of 2026 compared to 1.53% for the same period of 2025. Annualized return on average common equity (“ROE”) was 16.90% for the second quarter of 2026 compared to 9.84% for the same period of 2025.
- When adjusted for merger and non-recurring expenses, ROA was 1.59% for the second quarter of 2026 and ROE was 10.80%. Return on average tangible common equity continues to remain strong at 15.58% for the second quarter of 2026.
Balance Sheet and Asset Quality
- Consolidated assets totaled $3.61 billion at June 30, 2026.
- The Company’s loan portfolio increased $145.00 million, or 6.26% from year-end 2025. Excluding the Hometown acquisition, the loan portfolio decreased approximately $26.05 million, or 1.13%. However, loan production for the second quarter of 2026 was $134.45 million, compared to $78.89 million for the same quarter in 2025, a 70.43% increase.
- The Company did not repurchase any common shares in the second quarter of 2026; however, 504,652 common shares at total cost of $20.33 million were repurchased during the first quarter of 2026. The company repurchased 50,338 common shares during the second quarter of 2025 at a cost of $1.85 million.
- Total non-performing assets as of June 30, 2026, declined to $17.15 million, compared to $19.11 million as of June 30, 2025.
- Non-performing loans to total loans decreased to 0.70%, a 0.09% reduction when compared with the same quarter of 2025. The Company experienced net charge-offs for the second quarter of 2026 of $1.3 million, or 0.21%, of annualized average loans, compared to net charge-offs of $472 thousand, or 0.08%, of annualized average loans for the same period in 2025. Significant recoveries, in the amount of $1.04 million were received in the second quarter of 2025 driving the year over year variance.
- The allowance for credit losses increased $2.04 million in the second quarter of 2026 compared to December 31, 2025, primarily driven by the $3.21 million impact of the Hometown transaction. The allowance for credit losses to total loans was 1.33% on June 30, 2026, compared to 1.33% on December 31, 2025, and 1.40% on June 30, 2025.
- Book value per share on June 30, 2026, was $ 28.52, an increase of $1.22, or 4.47%, from year-end 2025.
Non-GAAP Financial Measures
In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this news release include “tangible book value per common share,” “return on average tangible common equity,” “adjusted earnings,” “adjusted diluted earnings per share,” “adjusted return on average assets,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” and certain financial measures presented on a fully taxable equivalent (“FTE”) basis. FTE basis is calculated using the federal statutory income tax rate of 21%. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to that comparable GAAP financial measure can be found in the attached tables to this press release. While the Company believes certain non-GAAP financial measures enhance the understanding of its business and performance, they are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions.
About First Community Bankshares, Inc.
First Community Bankshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 61 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of June 30, 2026. First Community Bank offers wealth management and investment advice and services through its Trust Division and through its wholly owned subsidiary, First Community Wealth Management, which collectively managed and administered $1.83 billion in combined assets as of June 30, 2026. The Company reported consolidated assets of $3.61 billion as of June 30, 2026. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. Additional investor information is available on the Company’s website at www.firstcommunitybank.com.
This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; changes in banking laws and regulations; the degree of competition by traditional and non-traditional competitors; the impact of natural disasters, extreme weather events, military conflict , terrorism or other geopolitical events; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
|
(Amounts in thousands, except share and per share data) |
June 30, | March 31, |
December 31, |
September 30, |
June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 32,638 | $ | 31,722 | $ | 31,232 | $ | 30,805 | $ | 30,637 | $ | 64,360 | $ | 61,306 | ||||||||||||||
| Interest on securities | 2,106 | 2,198 | 1,221 | 1,050 | 1,029 | 4,304 | 2,267 | |||||||||||||||||||||
| Interest on deposits in banks | 4,865 | 3,861 | 3,826 | 3,844 | 3,722 | 8,726 | 6,984 | |||||||||||||||||||||
| Total interest income | 39,609 | 37,781 | 36,279 | 35,699 | 35,388 | 77,390 | 70,557 | |||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||||
| Interest on deposits | 4,734 | 4,487 | 3,918 | 4,402 | 4,731 | 9,221 | 9,602 | |||||||||||||||||||||
| Total interest expense | 4,734 | 4,487 | 3,918 | 4,402 | 4,731 | 9,221 | 9,602 | |||||||||||||||||||||
| Net interest income | 34,875 | 33,294 | 32,361 | 31,297 | 30,657 | 68,169 | 60,955 | |||||||||||||||||||||
| Provision for credit losses | 483 | 378 | 36 | – | (285 | ) | 861 | 36 | ||||||||||||||||||||
| Net interest income after provision | 34,392 | 32,916 | 32,325 | 31,297 | 30,942 | 67,308 | 60,919 | |||||||||||||||||||||
| Noninterest income | 22,341 | 11,457 | 11,429 | 10,889 | 10,340 | 33,798 | 20,569 | |||||||||||||||||||||
| Noninterest expense | 27,565 | 28,737 | 27,624 | 26,279 | 25,455 | 56,302 | 50,399 | |||||||||||||||||||||
| Income before income taxes | 29,168 | 15,636 | 16,130 | 15,907 | 15,827 | 44,804 | 31,089 | |||||||||||||||||||||
| Income tax expense | 6,655 | 3,609 | 3,665 | 3,641 | 3,581 | 10,264 | 7,025 | |||||||||||||||||||||
| Net income | $ | 22,513 | $ | 12,027 | $ | 12,465 | $ | 12,266 | $ | 12,246 | $ | 34,540 | $ | 24,064 | ||||||||||||||
| Earnings per common share | ||||||||||||||||||||||||||||
| Basic | $ | 1.19 | $ | 0.64 | $ | 0.68 | $ | 0.67 | $ | 0.67 | $ | 1.83 | $ | 1.31 | ||||||||||||||
| Diluted | $ | 1.19 | $ | 0.63 | $ | 0.68 | $ | 0.67 | $ | 0.67 | $ | 1.82 | $ | 1.31 | ||||||||||||||
| Cash dividends per common share | ||||||||||||||||||||||||||||
| Regular | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.62 | 0.62 | |||||||||||||||||||||
| Special cash dividend | – | – | 1.00 | – | – | – | 2.07 | |||||||||||||||||||||
| Weighted average shares outstanding | ||||||||||||||||||||||||||||
| Basic | 18,879,907 | 18,925,478 | 18,315,268 | 18,314,865 | 18,295,465 | 18,902,567 | 18,310,032 | |||||||||||||||||||||
| Diluted | 18,979,314 | 19,032,945 | 18,390,550 | 18,400,289 | 18,400,793 | 18,999,498 | 18,427,503 | |||||||||||||||||||||
| Performance ratios | ||||||||||||||||||||||||||||
| Return on average assets | 2.49 | % | 1.39 | % | 1.53 | % | 1.53 | % | 1.53 | % | 1.95 | % | 1.51 | % | ||||||||||||||
| Return on average common equity | 16.90 | % | 9.29 | % | 9.63 | % | 9.58 | % | 9.84 | % | 13.15 | % | 9.67 | % | ||||||||||||||
| Return on average tangible common equity(1) | 24.39 | % | 13.46 | % | 13.80 | % | 13.82 | % | 14.32 | % | 19.01 | % | 14.04 | % | ||||||||||||||
_________________
| (1 | ) | A non-GAAP financial measure defined as net income divided by average stockholders’ equity less average goodwill and other intangible assets. | |||
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CONDENSED CONSOLIDATED QUARTERLY NONINTEREST INCOME AND EXPENSE (Unaudited) |
||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
| June 30, | March 31, |
December 31, |
September 30, |
June 30, | June 30, | |||||||||||||||||||||||
| (Amounts in thousands) | 2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2025 | |||||||||||||||||||||
| Noninterest income | ||||||||||||||||||||||||||||
| Wealth management | $ | 1,399 | $ | 1,299 | $ | 1,181 | $ | 1,371 | $ | 1,222 | $ | 2,698 | $ | 2,384 | ||||||||||||||
| Service charges on deposits | 4,431 | 4,185 | 4,292 | 4,520 | 4,120 | 8,616 | 7,956 | |||||||||||||||||||||
| Other service charges and fees | 4,473 | 3,943 | 4,046 | 3,847 | 3,791 | 8,416 | 7,131 | |||||||||||||||||||||
| (Loss) gain on sale of securities | 210 | (2 | ) | – | – | – | 208 | – | ||||||||||||||||||||
| Other operating income(1) | 11,828 | 2,032 | 1,911 | 1,151 | 1,207 | 13,860 | 3,098 | |||||||||||||||||||||
| Total noninterest income | $ | 22,341 | $ | 11,457 | $ | 11,429 | $ | 10,889 | $ | 10,340 | $ | 33,798 | $ | 20,569 | ||||||||||||||
| Noninterest expense | ||||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 15,127 | $ | 14,367 | $ | 14,398 | $ | 14,351 | $ | 14,349 | $ | 29,494 | $ | 27,684 | ||||||||||||||
| Occupancy expense | 1,529 | 1,666 | 1,306 | 1,508 | 1,290 | 3,195 | 2,866 | |||||||||||||||||||||
| Furniture and equipment expense | 1,576 | 1,573 | 1,484 | 1,502 | 1,587 | 3,149 | 3,162 | |||||||||||||||||||||
| Service fees | 2,858 | 2,789 | 2,648 | 2,728 | 2,475 | 5,647 | 4,959 | |||||||||||||||||||||
| Advertising and public relations | 922 | 873 | 923 | 939 | 1,154 | 1,795 | 2,209 | |||||||||||||||||||||
| Professional fees | 324 | 238 | 240 | 293 | 360 | 562 | 732 | |||||||||||||||||||||
| Amortization of intangibles | 841 | 846 | 433 | 433 | 526 | 1,687 | 1,050 | |||||||||||||||||||||
| FDIC premiums and assessments | 408 | 415 | 360 | 362 | 361 | 823 | 723 | |||||||||||||||||||||
| Merger expense | – | 2,310 | 2,125 | 787 | – | 2,310 | – | |||||||||||||||||||||
| Other operating expense | 3,980 | 3,660 | 3,707 | 3,376 | 3,353 | 7,640 | 7,014 | |||||||||||||||||||||
| Total noninterest expense | $ | 27,565 | $ | 28,737 | $ | 27,624 | $ | 26,279 | $ | 25,455 | $ | 56,302 | $ | 50,399 | ||||||||||||||
_________________
| (1 | ) | includes other operating income and expense items, such as the gain from the sale of Bearing Insurance. | |||
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RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited) |
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| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
| June 30, | March 31, |
December 31, |
September 30, |
June 30, | June 30, | |||||||||||||||||||||||
| (Amounts in thousands, except per share data) | 2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2025 | |||||||||||||||||||||
| Adjusted Net Income for diluted earnings per share | $ | 22,513 | $ | 12,027 | $ | 12,465 | $ | 12,266 | $ | 12,246 | $ | 34,540 | $ | 24,064 | ||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||||
| (Gain) loss on sale of securities | (210 | ) | 2 | – | – | – | (208 | ) | – | |||||||||||||||||||
| Merger expense | – | 2,310 | 2,125 | 787 | – | 2,310 | – | |||||||||||||||||||||
| Gain on divestiture | (10,384 | ) | – | – | – | – | (10,384 | ) | – | |||||||||||||||||||
| Other items (1) | (77 | ) | (216 | ) | – | – | – | (293 | ) | – | ||||||||||||||||||
| Total adjustments | (10,671 | ) | 2,096 | 2,125 | 787 | – | (8,575 | ) | – | |||||||||||||||||||
| Tax effect | (2,543 | ) | 457 | 434 | 152 | – | (2,086 | ) | – | |||||||||||||||||||
| Adjusted earnings, non-GAAP | $ | 14,385 | $ | 13,666 | $ | 14,156 | $ | 12,901 | $ | 12,246 | $ | 28,051 | $ | 24,064 | ||||||||||||||
| Adjusted diluted earnings per common share, non-GAAP | $ | 0.76 | $ | 0.72 | $ | 0.77 | $ | 0.70 | $ | 0.67 | $ | 1.48 | $ | 1.31 | ||||||||||||||
| Performance ratios, non-GAAP | ||||||||||||||||||||||||||||
| Adjusted return on average assets | 1.59 | % | 1.58 | % | 1.74 | % | 1.60 | % | 1.53 | % | 1.58 | % | 1.51 | % | ||||||||||||||
| Adjusted return on average common equity | 10.80 | % | 10.56 | % | 10.94 | % | 10.08 | % | 9.84 | % | 10.68 | % | 9.67 | % | ||||||||||||||
| Adjusted return on average tangible common equity (2) | 15.58 | % | 15.30 | % | 15.67 | % | 14.53 | % | 14.32 | % | 15.44 | % | 14.04 | % | ||||||||||||||
_________________
| (1 | ) | Includes other non-recurring income and expense items, such as BOLI proceeds. | |||
| (2 | ) | A non-GAAP financial measure defined as adjusted earnings divided by average stockholders’ equity less average goodwill and other intangible assets. | |||
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AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited) |
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| Three Months Ended June 30, | ||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||
| Average | Average Yield/ | Average | Average Yield/ | |||||||||||||||||||||
| (Amounts in thousands) | Balance | Interest (1) | Rate (1) | Balance | Interest (1) | Rate (1) | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Earning assets | ||||||||||||||||||||||||
| Loans(2)(3) | $ | 2,459,135 | $ | 32,795 | 5.35 | % | $ | 2,364,362 | $ | 30,731 | 5.21 | % | ||||||||||||
| Securities available for sale | 243,177 | 2,118 | 3.49 | % | 128,457 | 1,053 | 3.29 | % | ||||||||||||||||
| Interest-bearing deposits | 506,561 | 4,866 | 3.85 | % | 333,872 | 3,722 | 4.47 | % | ||||||||||||||||
| Total earning assets | 3,208,873 | 39,779 | 4.97 | % | 2,826,691 | 35,506 | 5.04 | % | ||||||||||||||||
| Other assets | 417,245 | 377,879 | ||||||||||||||||||||||
| Total assets | $ | 3,626,118 | $ | 3,204,570 | ||||||||||||||||||||
| Liabilities and stockholders’ equity | ||||||||||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||||||||||
| Demand deposits | $ | 835,345 | $ | 570 | 0.27 | % | $ | 657,888 | $ | 177 | 0.11 | % | ||||||||||||
| Savings deposits | 1,027,941 | 3,260 | 1.27 | % | 895,024 | 3,322 | 1.49 | % | ||||||||||||||||
| Time deposits | 212,504 | 891 | 1.68 | % | 228,485 | 1,232 | 2.16 | % | ||||||||||||||||
| Total interest-bearing deposits | 2,075,790 | 4,721 | 0.91 | % | 1,781,397 | 4,731 | 1.07 | % | ||||||||||||||||
| Borrowings | ||||||||||||||||||||||||
| Federal funds purchased | – | – | – | – | – | – | ||||||||||||||||||
| Retail repurchase agreements | 2,992 | 13 | 1.72 | % | 1,293 | – | 0.07 | % | ||||||||||||||||
| Total borrowings | 2,992 | 13 | 1.72 | % | 1,293 | – | 0.07 | % | ||||||||||||||||
| Total interest-bearing liabilities | 2,078,782 | 4,734 | 0.91 | % | 1,782,690 | 4,731 | 1.06 | % | ||||||||||||||||
| Noninterest-bearing demand deposits | 958,302 | 877,346 | ||||||||||||||||||||||
| Other liabilities | 54,601 | 45,310 | ||||||||||||||||||||||
| Total liabilities | 3,091,685 | 2,705,346 | ||||||||||||||||||||||
| Stockholders’ equity | 534,433 | 499,224 | ||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 3,626,118 | $ | 3,204,570 | ||||||||||||||||||||
| Net interest income, FTE(1) | $ | 35,045 | $ | 30,775 | ||||||||||||||||||||
| Net interest rate spread | 4.06 | % | 3.97 | % | ||||||||||||||||||||
| Net interest margin, FTE(1) | 4.38 | % | 4.37 | % | ||||||||||||||||||||
_________________
| (1 | ) | Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%. |
| (2 | ) | Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual. |
| (3 | ) | Interest on loans includes non-cash and accelerated purchase accounting accretion of $372 thousand and $430 thousand for the three months ended June 30, 2026,and 2025, respectively. |
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AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited) |
||||||||||||||||||||||||
| Six Months Ended June 30, | ||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||
| Average | Average Yield/ | Average | Average Yield/ | |||||||||||||||||||||
| (Amounts in thousands) | Balance | Interest(1) | Rate(1) | Balance | Interest(1) | Rate(1) | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Earning assets | ||||||||||||||||||||||||
| Loans(2)(3) | $ | 2,446,811 | $ | 64,650 | 5.33 | % | $ | 2,379,630 | $ | 61,488 | 5.21 | % | ||||||||||||
| Securities available for sale | 250,856 | 4,341 | 3.49 | % | 138,804 | 2,314 | 3.36 | % | ||||||||||||||||
| Interest-bearing deposits | 458,716 | 8,731 | 3.84 | % | 315,011 | 6,984 | 4.47 | % | ||||||||||||||||
| Total earning assets | 3,156,383 | 77,722 | 4.97 | % | 2,833,445 | 70,786 | 5.04 | % | ||||||||||||||||
| Other assets | 415,245 | 375,846 | ||||||||||||||||||||||
| Total assets | $ | 3,571,628 | $ | 3,209,291 | ||||||||||||||||||||
| Liabilities and stockholders’ equity | ||||||||||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||||||||||
| Demand deposits | $ | 807,894 | $ | 987 | 0.25 | % | $ | 658,268 | $ | 357 | 0.11 | % | ||||||||||||
| Savings deposits | 1,012,667 | 6,356 | 1.27 | % | 893,096 | 6,633 | 1.50 | % | ||||||||||||||||
| Time deposits | 214,287 | 1,856 | 1.75 | % | 233,343 | 2,612 | 2.26 | % | ||||||||||||||||
| Total interest-bearing deposits | 2,034,848 | 9,199 | 0.91 | % | 1,784,707 | 9,602 | 1.09 | % | ||||||||||||||||
| Borrowings | ||||||||||||||||||||||||
| Federal funds purchased | – | – | – | – | – | – | ||||||||||||||||||
| Retail repurchase agreements | 2,780 | 22 | 1.59 | % | 1,183 | – | 0.06 | % | ||||||||||||||||
| Total borrowings | 2,780 | 22 | 1.59 | % | 1,183 | – | 0.06 | % | ||||||||||||||||
| Total interest-bearing liabilities | 2,037,628 | 9,221 | 0.91 | % | 1,785,890 | 9,602 | 1.08 | % | ||||||||||||||||
| Noninterest-bearing demand deposits | 945,763 | 868,714 | ||||||||||||||||||||||
| Other liabilities | 58,531 | 52,698 | ||||||||||||||||||||||
| Total liabilities | 3,041,922 | 2,707,302 | ||||||||||||||||||||||
| Stockholders’ equity | 529,706 | 501,989 | ||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 3,571,628 | $ | 3,209,291 | ||||||||||||||||||||
| Net interest income, FTE(1) | $ | 68,501 | $ | 61,184 | ||||||||||||||||||||
| Net interest rate spread | 4.05 | % | 3.96 | % | ||||||||||||||||||||
| Net interest margin, FTE(1) | 4.38 | % | 4.35 | % | ||||||||||||||||||||
_________________
| (1 | ) | Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%. |
| (2 | ) | Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual. |
| (3 | ) | Interest on loans includes non-cash and accelerated purchase accounting accretion of $861 thousand and $986 thousand for the six months ended June 30, 2026,and 2025, respectively. |
| CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited) | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (Amounts in thousands, except per share data) | 2026 | 2026 | 2025 | 2025 | 2025 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 591,913 | $ | 600,299 | $ | 512,240 | $ | 427,705 | $ | 395,057 | ||||||||||
| Debt securities available for sale, at fair value | 239,050 | 267,522 | 132,688 | 131,314 | 132,535 | |||||||||||||||
| Loans held for investment, net of unearned income | 2,459,746 | 2,456,029 | 2,314,755 | 2,331,305 | 2,353,277 | |||||||||||||||
| Allowance for credit losses | (32,654 | ) | (33,543 | ) | (30,761 | ) | (31,597 | ) | (33,020 | ) | ||||||||||
| Loans held for investment, net | 2,427,092 | 2,422,486 | 2,283,994 | 2,299,708 | 2,320,257 | |||||||||||||||
| Premises and equipment, net | 50,161 | 50,204 | 47,560 | 47,522 | 48,023 | |||||||||||||||
| Other real estate owned | 52 | – | – | 264 | 455 | |||||||||||||||
| Interest receivable | 9,344 | 9,856 | 8,720 | 9,121 | 8,787 | |||||||||||||||
| Goodwill | 145,672 | 145,672 | 143,946 | 143,946 | 143,946 | |||||||||||||||
| Other intangible assets | 18,001 | 18,841 | 11,098 | 11,531 | 11,964 | |||||||||||||||
| Other assets | 126,435 | 130,067 | 119,397 | 118,502 | 119,990 | |||||||||||||||
| Total assets | $ | 3,607,720 | $ | 3,644,947 | $ | 3,259,643 | $ | 3,189,613 | $ | 3,181,014 | ||||||||||
| Liabilities | ||||||||||||||||||||
| Deposits | ||||||||||||||||||||
| Noninterest-bearing | $ | 973,218 | $ | 959,555 | $ | 896,255 | $ | 865,554 | $ | 873,677 | ||||||||||
| Interest-bearing | 2,043,373 | 2,104,832 | 1,789,074 | 1,765,039 | 1,761,687 | |||||||||||||||
| Total deposits | 3,016,591 | 3,064,387 | 2,685,329 | 2,630,593 | 2,635,364 | |||||||||||||||
| Securities sold under agreements to repurchase | 2,924 | 3,181 | 1,214 | 1,429 | 1,016 | |||||||||||||||
| Interest, taxes, and other liabilities | 49,105 | 55,985 | 72,553 | 46,866 | 41,805 | |||||||||||||||
| Total liabilities | 3,068,620 | 3,123,553 | 2,759,096 | 2,678,888 | 2,678,185 | |||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||
| Common stock | 18,903 | 18,861 | 18,335 | 18,315 | 18,311 | |||||||||||||||
| Additional paid-in capital | 186,291 | 184,684 | 170,358 | 169,569 | 169,358 | |||||||||||||||
| Retained earnings | 342,103 | 325,439 | 319,368 | 330,895 | 324,307 | |||||||||||||||
| Accumulated other comprehensive loss | (8,197 | ) | (7,590 | ) | (7,514 | ) | (8,054 | ) | (9,147 | ) | ||||||||||
| Total stockholders’ equity | 539,100 | 521,394 | 500,547 | 510,725 | 502,829 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 3,607,720 | $ | 3,644,947 | $ | 3,259,643 | $ | 3,189,613 | $ | 3,181,014 | ||||||||||
| Shares outstanding at period-end | 18,902,628 | 18,861,295 | 18,334,787 | 18,314,905 | 18,311,232 | |||||||||||||||
| Book value per common share | $ | 28.52 | $ | 27.64 | $ | 27.30 | $ | 27.89 | $ | 27.46 | ||||||||||
| Tangible book value per common share(1) | 19.86 | 18.92 | 18.84 | 19.40 | 18.95 | |||||||||||||||
_________________
| (1 | ) | A non-GAAP financial measure defined as stockholders’ equity less goodwill and other intangible assets, divided by shares outstanding. |
|
SELECTED CREDIT QUALITY INFORMATION (Unaudited) |
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| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (Amounts in thousands) | 2026 | 2026 | 2025 | 2025 | 2025 | |||||||||||||||
| Allowance for Credit Losses | ||||||||||||||||||||
| Balance at beginning of period: | ||||||||||||||||||||
| Allowance for credit losses – loans | $ | 33,543 | $ | 30,761 | $ | 31,597 | $ | 33,020 | $ | 33,784 | ||||||||||
| Allowance for credit losses – loan commitments | 433 | 355 | 319 | 319 | 312 | |||||||||||||||
| Total allowance for credit losses beginning of period | 33,976 | 31,116 | 31,916 | 33,339 | 34,096 | |||||||||||||||
| Adjustments to beginning balance: | ||||||||||||||||||||
| Allowance for credit losses – loans – Hometown acquisition | – | 3,213 | – | – | – | |||||||||||||||
| Net Adjustments | – | 3,213 | – | – | – | |||||||||||||||
| Provision for credit losses: | ||||||||||||||||||||
| Provision for (recovery of) credit losses – loans | 411 | 300 | – | – | (292 | ) | ||||||||||||||
| Provision for credit losses – loan commitments | 72 | 78 | 36 | – | 7 | |||||||||||||||
| Total provision for (recovery of) credit losses – loans and loan commitments | 483 | 378 | 36 | – | (285 | ) | ||||||||||||||
| Charge-offs | (1,804 | ) | (1,379 | ) | (1,527 | ) | (2,015 | ) | (1,509 | ) | ||||||||||
| Recoveries | 504 | 648 | 691 | 592 | 1,037 | |||||||||||||||
| Net charge-offs | (1,300 | ) | (731 | ) | (836 | ) | (1,423 | ) | (472 | ) | ||||||||||
| Balance at end of period: | ||||||||||||||||||||
| Allowance for credit losses – loans | 32,654 | 33,543 | 30,761 | 31,597 | 33,020 | |||||||||||||||
| Allowance for credit losses – loan commitments | 505 | 433 | 355 | 319 | 319 | |||||||||||||||
| Ending balance | $ | 33,159 | $ | 33,976 | $ | 31,116 | $ | 31,916 | $ | 33,339 | ||||||||||
| Nonperforming Assets | ||||||||||||||||||||
| Nonaccrual loans | $ | 16,816 | $ | 17,672 | $ | 13,941 | $ | 16,514 | $ | 18,084 | ||||||||||
| Accruing loans past due 90 days or more | 280 | 30 | 212 | 125 | 568 | |||||||||||||||
| Total nonperforming loans | 17,096 | 17,702 | 14,153 | 16,639 | 18,652 | |||||||||||||||
| OREO | 52 | – | – | 264 | 455 | |||||||||||||||
| Total nonperforming assets | $ | 17,148 | $ | 17,702 | $ | 14,153 | $ | 16,903 | $ | 19,107 | ||||||||||
| Additional Information | ||||||||||||||||||||
| Total modified loans | $ | 3,435 | $ | 2,736 | $ | 2,442 | $ | 2,291 | $ | 2,129 | ||||||||||
| Asset Quality Ratios | ||||||||||||||||||||
| Nonperforming loans to total loans | 0.70 | % | 0.72 | % | 0.61 | % | 0.71 | % | 0.79 | % | ||||||||||
| Nonperforming assets to total assets | 0.48 | % | 0.49 | % | 0.43 | % | 0.53 | % | 0.60 | % | ||||||||||
| Allowance for credit losses to nonperforming loans | 191.00 | % | 189.49 | % | 217.35 | % | 189.90 | % | 177.03 | % | ||||||||||
| Allowance for credit losses to total loans | 1.33 | % | 1.37 | % | 1.33 | % | 1.36 | % | 1.40 | % | ||||||||||
| Annualized net charge-offs to average loans | 0.21 | % | 0.12 | % | 0.14 | % | 0.24 | % | 0.08 | % | ||||||||||
FOR MORE INFORMATION, CONTACT:
David D. Brown
(276) 326-9000
