Here are 1-2 brief analogies for First Community Bankshares (FCBC):

• Like a localized, community-focused version of a major regional bank such as Truist Financial.
• The 'hometown bank' alternative, providing traditional services in contrast to national chains like Bank of America.

• Deposit Services: Providing a variety of checking, savings, money market, and certificate of deposit accounts for individuals and businesses.
• Lending Services: Offering a range of loans including commercial real estate, residential mortgage, commercial and industrial, and consumer loans.
• Wealth Management & Trust Services: Delivering financial planning, investment management, and trust services to assist clients in managing and growing their assets.
• Treasury Management Services: Supplying cash management, payment processing, and other financial tools specifically for business clients.

First Community Bankshares (FCBC) is a bank holding company that operates First Community Bank. As a financial institution, it provides a wide range of financial services rather than selling products to a limited number of major customers. Banks typically serve a diverse base of depositors and borrowers, and therefore do not have "major customers" in the traditional sense of a company whose loss would significantly impact revenue.

First Community Bankshares sells financial services primarily to the following categories of customers:

• Individuals and Households: This category includes consumers who utilize personal banking services such as checking accounts, savings accounts, certificates of deposit (CDs), personal loans, auto loans, and residential mortgages.
• Small to Medium-sized Businesses: These customers rely on the bank for commercial loans, lines of credit, business checking and savings accounts, treasury management services, and commercial real estate loans.
• Non-profit Organizations and Local Governments: These entities also require banking services, including deposit accounts, financing for projects, and cash management solutions for their operations.

• Fidelity National Information Services, Inc. (NYSE: FIS)

William P. Stafford, II, Chairman of the Board and Chief Executive Officer

Mr. Stafford has served as Chief Executive Officer of First Community Bankshares, Inc. since August 2013 and is also the Chairman of the Board. He is a graduate of Virginia Polytechnic Institute and State University with a Bachelor of Science degree in Mechanical Engineering and received his Juris Doctor, cum laude, from Washington & Lee University School of Law. Mr. Stafford is a member of Brewster, Morhous, Cameron, Caruth, Moore, Kersey & Stafford, PLLC, where he practices law on a limited basis in areas such as commercial transactions, banking, and creditor's rights. He also serves as Director and Corporate Secretary of H. P. and Anne S. Hunnicutt Foundation, Inc., Princeton Machinery Service, Inc., and Melrose Enterprises, Ltd. Mr. Stafford is a member of Stafford Farms, LLC, Vermillion Development, LLC, and Walnut Hill, LLC, which involve real estate and agricultural holdings.

David D. Brown, Chief Financial Officer

Mr. Brown has served as Chief Financial Officer of First Community Bankshares, Inc. and First Community Bank since May 2006, having joined the Corporation or one of its subsidiaries in 2005. Prior to his tenure with First Community Bankshares, Inc., Mr. Brown held various positions, including Corporate Auditor of United Bankshares, Inc. from 1999 to 2005. From 1997 to 1999, he worked in public accounting, focusing on tax, accounting, and auditing across diverse industries. Mr. Brown is a Certified Public Accountant and holds Master of Public Accountancy and Bachelor of Science degrees from West Virginia University.

Gary R. Mills, President of Company and Bank and Chief Executive Officer of First Community Bank

Mr. Mills has served as President of First Community Bankshares, Inc. and Chief Executive Officer of First Community Bank since August 31, 2013. He has been employed by the Corporation and/or its subsidiaries since 1998. His previous roles include Chief Executive Officer of the Princeton Division of First Community Bank from 1998 to 2005, Senior Vice President of Credit Administration from 2005 to 2006, and Chief Credit Officer from 2007 until his appointment as CEO. Mr. Mills is a Certified Public Accountant and holds a Bachelor of Science degree in Business Administration with a concentration in Accounting from Concord University.

Jason R. Belcher, Chief Operating Officer

Mr. Belcher assumed the role of Chief Operating Officer of First Community Bankshares, Inc. on January 1, 2020. He has been employed by the Corporation’s banking subsidiary since 2005, serving in various capacities such as Finance and Tax Director, Treasurer, and Market President. Mr. Belcher, a Certified Public Accountant, earned his Bachelor of Science in Business Administration from West Virginia University and a Master of Accounting and Information Systems from Virginia Polytechnic Institute and State University.

Sarah W. Harmon, Chief Administrative Officer, General Counsel, and Secretary

Ms. Harmon serves as the Chief Administrative Officer, General Counsel, and Secretary of First Community Bankshares, Inc. and First Community Bank. Since March 2021, she has been the District 10 Representative for the West Virginia State Bar Board of Governors. She is also a member of the ABA General Counsel Group and chairs both the Virginia Bankers Association Legal Affairs Committee and the West Virginia Bankers Association Legislative Affairs and Government Relations Committee.

1. Interest Rate Risk: First Community Bankshares is susceptible to variations in interest rates, which can negatively affect its financial performance. Fluctuations in market interest rates can materially and adversely impact the company's net interest spread, asset quality, levels of prepayments, cash flows, the market value of its securities portfolio, and overall profitability.
2. Credit Risk: As a financial institution, FCBC is exposed to credit risk, which is the risk of losses arising from a borrower's failure to repay a loan or meet contractual obligations. Evidence of this includes an increase in non-performing loans to total loans and net charge-offs in the first quarter of 2025 compared to the previous year.
3. Economic Fluctuations and General Economic Conditions: The company's performance is significantly influenced by the broader economic environment. Economic fluctuations, including factors such as inflation, recession, and rising unemployment, can impact the banking industry by affecting loan demand, credit quality, and overall financial stability for the bank.

The clear emerging threat for First Community Bankshares, a traditional community bank, is the rapid growth and increasing sophistication of digital-first banks (often called neobanks) and specialized fintech lenders. These entities leverage advanced technology to offer competitive deposit rates, lower fees, and seamless digital user experiences that attract customers, particularly younger generations, who might otherwise bank with traditional institutions. This shift erodes FCBC's potential deposit base and increases competition for loan origination without the overhead of physical branches. Furthermore, the increasing prevalence of "embedded finance" presents a threat, as non-financial companies integrate banking-like services (such as buy-now-pay-later options or integrated payment solutions) directly into their own platforms, thereby disintermediating traditional banks from various customer financial interactions.

The addressable markets for First Community Bankshares' (FCBC) main products and services, primarily within the United States, are as follows:

Retail Banking / Community Banking

• The U.S. retail banking market was valued at approximately USD 1,105 billion in 2024 and is projected to reach USD 1,850 billion by 2032, growing at a CAGR of 6.7% during the forecast period of 2026-2032. Another estimate for the United States retail banking market valued it at USD 0.87 trillion in 2025, forecasted to reach USD 1.08 trillion by 2030.
• The U.S. community banking market reached a valuation of USD 6.35 billion in 2024, with a projected CAGR of 3.8%. It was estimated at USD 16.76 billion in 2024 and is projected to grow to USD 30.46 billion by 2035. The market size of community banking in 2025 is expected to expand from USD 17.79 billion in 2024 to USD 19.39 billion.

Commercial Lending

• The commercial lending market size in the U.S. has grown rapidly, from USD 14.15 trillion in 2023 to USD 16.44 trillion in 2024, and is expected to grow to USD 30.09 trillion in 2028. Globally, the commercial lending market size was valued at USD 11,874.88 billion in 2024 and is expected to grow to nearly USD 25,270.32 billion by 2032.

Mortgage Lending (Consumer Real Estate Loans)

• The U.S. home loan market reached USD 2.29 trillion in 2025 and is forecasted to grow to USD 3.02 trillion by 2030, advancing at a 5.63% CAGR. The U.S. mortgage lending market is estimated to have a total value exceeding USD 2.5 trillion annually. The mortgage lender market size in the U.S. is expected to grow from USD 1.15 trillion in 2024 to USD 1.29 trillion in 2025, and to USD 2.04 trillion in 2029.

Wealth Management

• The Assets under Management (AUM) in the Americas wealth management market are predicted to reach USD 67.75 trillion by 2024, with financial advisory services being the largest segment at an estimated volume of USD 65.87 trillion in the same year. AUM in this market is expected to grow to USD 91.16 trillion by 2028. The United States holds 54.2% of global AUM in 2025, with global AUM reaching USD 162 trillion in 2025.

• Strategic Merger and Expansion: The planned merger with Hometown Bank, expected to be completed by January 2026, is a significant driver for future growth. While incurring some merger-related expenses in the short term, this acquisition is poised to expand FCBC's market presence and customer base, leading to increased revenue opportunities.
• Growth in Noninterest Income: The company has demonstrated a focus on increasing noninterest income, with a rise driven by higher service charges on deposits and wealth management fees. This diversification away from purely interest-based revenue is expected to continue contributing to overall revenue growth.
• Optimizing Net Interest Margin and Loan Portfolio: Despite some fluctuations in loan balances, First Community Bankshares has shown an ability to maintain a stable net interest margin, increasing to 4.43% in Q3 2025. Effective management of interest expenses and strategic optimization of its loan portfolio are crucial for sustained profitability and revenue generation in its core banking operations.

Share Repurchases

• In February 2021, the Board of Directors authorized a new plan to repurchase 2,400,000 shares of common stock.
• During 2024, First Community Bankshares repurchased 257,294 common shares at a total cost of $8.72 million.
• From 2021 through September 30, 2025, the company repurchased shares for an aggregate of approximately $83.8 million.

Share Issuance

• The acquisition of Hometown Bancshares, Inc., announced in July 2025 for approximately $41.5 million, involves the conversion of Hometown common stock into First Community common stock.

Outbound Investments

• First Community Bankshares completed the acquisition of Surrey Bancorp for approximately $113.2 million in April 2023.
• The company announced the acquisition of Hometown Bancshares, Inc. for approximately $41.5 million in July 2025, with the transaction expected to close in the first quarter of 2026. This acquisition is aimed at expanding the company's presence and growing low-cost core deposits in new markets.

Capital Expenditures

• During 2023, the company made investments to expand its leadership team and presence in the Roanoke market.
• Capital expenditures in 2023 also focused on upgrading core technology and bolstering senior level management.