| FIRST COMMUNITY BANKSHARES, INC. |
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| FORM 10-Q |
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| INDEX |
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| PART I. · FINANCIAL INFORMATION · Page |
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| Item 1. · Financial Statements |
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| Condensed Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 | 4 |
| Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) | 5 |
| Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) | 6 |
| Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) | 7 |
| Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 (Unaudited) | 9 |
| Notes to Condensed Consolidated Financial Statements (Unaudited) | 10 |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 36 | |
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| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 51 | |
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| Item 4. | Controls and Procedures | 51 | |
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| PART II. | OTHER INFORMATION | |
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| Item 1. | Legal Proceedings | 51 | |
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| Item 1A. | Risk Factors | 51 | |
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| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 52 | |
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| Item 3. | Defaults Upon Senior Securities | 52 | |
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| Item 4. | Mine Safety Disclosures | 52 | |
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| Item 5. | Other Information | 52 | |
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| Item 6. | Exhibits | 53 | |
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| Signatures | 55 | |
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Forward-looking statements in filings with the Securities and Exchange Commission, including this Quarterly Report on Form 10-Q and the accompanying Exhibits, filings incorporated by reference, reports to shareholders, and other communications that represent the Company’s beliefs, plans, objectives, goals, guidelines, expectations, anticipations, estimates, and intentions are made in good faith pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” and other similar expressions identify forward-looking statements. The following factors, among others, could cause financial performance to differ materially from that expressed in such forward-looking statements:
| ● | inflation, interest rate, market and monetary fluctuations; |
| ● | the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations including tariffs or changes in trade policies; |
| ● | the effects of, and changes in, trade, monetary, and fiscal policies and laws, including interest rate policies of the Federal Reserve System; |
| ● | timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; |
| ● | the willingness of customers to substitute competitors’ products and services for the Company’s products and services and vice versa; |
| ● | the impact of changes in financial services laws and regulations, including laws about taxes, banking, securities, and insurance; |
| ● | the impact of the U.S. Department of the Treasury and federal banking regulators’ continued implementation of programs to address capital and liquidity in the banking system; |
| ● | the impact of a prolonged federal government shutdown; |
| ● | the cost and effects of cyber incidents or other failures, interruptions, or security breaches of our systems or those of third-party providers; |
| ● | the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters; |
| ● | the effect of acquisitions, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions; |
| ● | the sustainability of noninterest, or fee, income being less than expected; |
| ● | unanticipated regulatory or judicial proceedings; |
| ● | changes in consumer spending and saving habits; and |
| ● | the Company’s success at managing the risks mentioned above. |
This list of important factors is not exclusive. If one or more of the factors affecting these forward-looking statements proves incorrect, actual results, performance, or achievements could differ materially from those expressed in, or implied by, forward-looking statements contained in this Quarterly Report on Form 10-Q and other reports we file with the Securities and Exchange Commission. Therefore, the Company cautions you not to place undue reliance on forward-looking information and statements. The Company does not intend to update any forward-looking statements, whether written or oral, to reflect changes. These cautionary statements expressly qualify all forward-looking statements that apply to the Company including the risk factors presented in Part II, Item 1A, “Risk Factors,” of this Quarterly Report on Form 10-Q and Part I, Item 1A, “Risk Factors,” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
