First Community Bancshares (FCBC) AI Stock Analysis

• Market Cap: $728.20M
• Dividend Yield: 9.26%
• Average Volume (3M): 36.65K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.73
• Revenue Growth: -0.40%
• EPS Growth: -1.43%
• Country: US
• Employees: 583
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.77
• Shares Outstanding: 18,314,905
• 10 Day Avg. Volume: 35,346
• 30 Day Avg. Volume: 36,653
• PEG Ratio: 2.82
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 4.34
• P/FCF Ratio: 13.91
• Enterprise Value/Market Cap: 0.33
• Enterprise Value/Revenue: 1.36
• Enterprise Value/Gross Profit: 1.54
• Enterprise Value/Ebitda: 3.43
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $42.00 ▲(15.80% Upside)

The score is driven primarily by strong financial performance (healthy margins and a very strong balance sheet) and supported by attractive shareholder return metrics (high dividend yield and a moderate P/E). Technicals are mildly positive but capped by trading below the 200-day average and elevated stochastic readings, while recent merger-related events add a favorable strategic and capital-return tailwind.

Positive Factors

Balance Sheet Strength

Very low leverage and a healthy equity ratio give the bank durable financial flexibility: supports lending growth, cushions credit losses, funds dividends or opportunistic acquisitions without stressing capital ratios, and reduces refinancing risk over the medium term.

Profitability / Margins

Sustained ~30% net margin and solid EBIT indicate efficient operations and pricing power in core banking lines. Durable margins support cash returns and reinvestment, and provide buffer against cyclical NIM pressure or modest credit cost increases over the next several quarters.

Merger Adds Scale & Core Deposits

The Hometown deal materially increases scale and low-cost core deposits, strengthening funding stability and lending capacity in the Parkersburg-Marietta-Vienna region. Expanded footprint and product reach create durable cross-sell and efficiency opportunities over 2-6 months and beyond.

Negative Factors

Negative Revenue Trend

A recent decline in revenue growth poses a structural risk if it persists: slower top-line expansion can erode long-term earnings power, limit reinvestment and dividend sustainability, and reduce the ability to fund growth initiatives or absorb adverse credit cycles.

Weak Operating Cash Flow Coverage

Lower operating cash flow coverage versus net income signals weaker cash conversion. Over months this can constrain liquidity for lending, capital returns, or unexpected expenses; it may reflect timing, reserve builds, or collection issues that merit monitoring for sustainability.

Merger Integration & Contingent Liabilities

Assuming unvested SARs and complex stock-for-stock settlements creates contingent cash/dilution and adds integration execution risk. Integration costs, benefit realization delays, or payout obligations could weigh on capital and management focus during the multi-quarter integration phase.

First Community Bancshares Business Overview & Revenue Model

Company Description

First Community Bancshares (FCBC) is a financial holding company headquartered in Bluefield, West Virginia. The company operates through its wholly-owned banking subsidiary, First Community Bank, and provides a range of banking and financial services to individuals and businesses. FCBC's core offerings include personal and commercial banking, mortgage lending, and wealth management services, primarily serving customers in West Virginia, Virginia, and Tennessee.

How the Company Makes Money

First Community Bancshares generates revenue primarily through interest income from loans and investments, as well as non-interest income from service fees and other financial services. The company's key revenue streams include interest earned on various loan products such as personal, commercial, and mortgage loans, which typically account for a significant portion of its earnings. Non-interest income is derived from fees associated with checking and savings accounts, credit and debit card services, and wealth management services. Additionally, FCBC benefits from strategic partnerships, including collaborations with local businesses and organizations that enhance its service offerings and customer base. The bank also invests in securities, which contribute to its interest income, and actively manages its cost of funds to optimize profitability.

First Community Bancshares Financial Statement Overview

Summary

Strong overall fundamentals supported by solid profitability and a robust, low-leverage balance sheet. Key watchouts are the recent negative revenue growth trend and weaker operating cash flow coverage in the TTM period.

Income Statement

First Community Bancshares shows strong profitability with a consistent net profit margin around 30% and a healthy EBIT margin. However, the recent TTM data indicates a slight decline in revenue growth, which could be a concern if it continues. Overall, the company maintains solid margins, but the negative revenue growth trend needs monitoring.

Balance Sheet

The company has a very low debt-to-equity ratio, indicating minimal leverage and strong financial stability. Return on equity is solid, reflecting efficient use of equity to generate profits. The equity ratio is also healthy, suggesting a strong capital structure. Overall, the balance sheet is robust with low risk from debt.

Cash Flow

Cash flow metrics are generally positive, with free cash flow showing growth in the latest period. The free cash flow to net income ratio is close to 1, indicating good cash conversion. However, the operating cash flow to net income ratio is low in the TTM period, which could suggest some cash flow management issues. Overall, cash flow is strong but requires careful monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	174.49M	175.89M	165.71M	142.24M	133.29M	138.20M
Gross Profit	154.27M	152.62M	148.24M	134.01M	138.92M	120.07M
EBITDA	69.42M	72.17M	67.66M	65.76M	72.44M	52.02M
Net Income	49.37M	51.60M	48.02M	46.66M	51.17M	35.93M
Balance Sheet
Total Assets	3.19B	3.26B	3.27B	3.14B	3.19B	3.01B
Cash, Cash Equivalents and Short-Term Investments	184.02M	216.72M	360.07M	365.56M	126.69M	144.16M
Total Debt	1.43M	906.00K	1.12M	1.87M	1.54M	964.00K
Total Liabilities	2.68B	2.73B	2.77B	2.71B	2.77B	2.58B
Stockholders Equity	510.73M	526.39M	503.29M	421.99M	427.77M	426.73M
Cash Flow
Free Cash Flow	55.35M	54.93M	59.06M	57.86M	45.18M	42.65M
Operating Cash Flow	57.30M	57.74M	61.83M	59.02M	48.22M	45.84M
Investing Cash Flow	145.00M	263.91M	288.66M	-536.78M	35.35M	17.80M
Financing Cash Flow	-89.93M	-60.62M	-404.92M	-28.84M	137.31M	175.91M

First Community Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCBC, the sentiment is Positive. The current price of 36.27 is above the 20-day moving average (MA) of 35.19, above the 50-day MA of 33.82, and above the 200-day MA of 34.84, indicating a bullish trend. The MACD of 1.54 indicates Negative momentum. The RSI at 78.56 is Negative, neither overbought nor oversold. The STOCH value of 97.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FCBC.

First Community Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBCP	79 Outperform	$760.02M	11.23	14.51%	3.09%	4.29%	10.56%
CAC	75 Outperform	$861.51M	13.26	9.49%	3.66%	24.08%	9.83%
FCBC	74 Outperform	$728.20M	15.00	9.57%	9.26%	-0.40%	-1.43%
NBBK	73 Outperform	$952.44M	16.68	7.84%	0.67%	14.04%	337.54%
ORRF	70 Outperform	$758.89M	9.31	14.59%	2.93%	47.65%	101.00%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EGBN	61 Neutral	$833.08M	-6.44	-10.24%	2.40%	-8.51%	-185.08%

First Community Bancshares Corporate Events

First Community Bancshares Completes Merger With Hometown Bancshares

On January 23, 2026, First Community Bankshares, Inc. completed its previously announced merger with West Virginia-based Hometown Bancshares, Inc., with Hometown being absorbed into First Community and its subsidiary Union Bank, Inc. merged into First Community Bank; Hometown’s eight West Virginia branches converted to First Community Bank locations on January 26, 2026. Under the stock-for-stock transaction, each Hometown share was converted into the right to receive 11.706 shares of First Community common stock, with associated stock appreciation and dividend equivalent rights largely vesting and being settled in cash, while certain unvested stock appreciation rights were assumed by First Community. The deal, first announced on July 19, 2025, added roughly $415 million in assets, $172 million in loans, and $376 million in deposits as of December 2025 to First Community’s balance sheet and is intended to accelerate growth in low-cost core deposits and strengthen the company’s presence in the Parkersburg-Marietta-Vienna metropolitan area, while offering Union Bank customers greater scale, higher lending limits, and expanded product and technology offerings.

The most recent analyst rating on (FCBC) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on First Community Bancshares stock, see the FCBC Stock Forecast page.

First Community Bancshares Secures Final Approval for Merger

On December 30, 2025, First Community Bankshares, Inc. received final regulatory approval from the Virginia Bureau of Financial Institutions to merge Union Bank, Inc., a wholly owned subsidiary of Hometown Bancshares, Inc., into First Community Bank in connection with the previously announced merger of Hometown into First Community Bankshares. The approval clears the last regulatory hurdle for the transaction, leaving only customary closing conditions before completion, which is expected in the first quarter of 2026 and will expand First Community Bankshares’ banking footprint and consolidate its regional presence.

The most recent analyst rating on (FCBC) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on First Community Bancshares stock, see the FCBC Stock Forecast page.

First Community Bancshares shareholders approve Hometown merger plan

On December 18, 2025, Hometown Bancshares, Inc. informed its shareholders that they had overwhelmingly approved the merger of Hometown with and into First Community Bankshares, Inc., following an affirmative vote held on December 2, 2025, and prior Federal Reserve approval on November 6, 2025. The companies indicated that the merger remains subject to approval by the Virginia Bureau of Financial Institutions and other customary closing conditions, with closing targeted for January 23, 2026 and expected in the first quarter of 2026; Hometown shareholders were advised about forthcoming instructions to exchange their Hometown shares for First Community stock, the payment of a special dividend in January 2026 in lieu of Hometown’s regular quarterly dividend, and the filing of a short-year 2026 tax return, after which tax basis information for shareholders will be provided.

The most recent analyst rating on (FCBC) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on First Community Bancshares stock, see the FCBC Stock Forecast page.

First Community Bancshares Announces Special Cash Dividend

On December 16, 2025, First Community Bankshares announced a special cash dividend of $1.00 per common share, payable on January 16, 2026, based on the company’s performance in the first three quarters of 2025. The Board of Directors determined that the company has sufficient surplus capital to support future growth opportunities even after the special dividend payment, which totals approximately $18.32 million.

The most recent analyst rating on (FCBC) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on First Community Bancshares stock, see the FCBC Stock Forecast page.

First Community Bancshares Merger Approved by Shareholders

On December 2, 2025, Hometown Bancshares, Inc. shareholders approved a merger with First Community Bankshares, Inc. The merger, initially agreed upon on July 19, 2025, awaits approval from the Virginia State Corporation Commission Bureau of Financial Institutions and is expected to close in the first quarter of 2026.

The most recent analyst rating on (FCBC) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on First Community Bancshares stock, see the FCBC Stock Forecast page.

First Community Bancshares Gains Federal Approval for Merger

First Community Bankshares, Inc. received regulatory approval from the Federal Reserve Bank of Richmond on November 6, 2025, to merge Union Bank, a subsidiary of Hometown Bancshares, with First Community Bank. This approval is part of a larger merger agreement between First Community and Hometown, initially announced on July 19, 2025. The merger still requires approval from the Virginia State Corporation Commission Bureau of Financial Institutions and Hometown’s shareholders. Additionally, First Community amended its proxy statement to correct an error regarding the valuation of Hometown by Institution A, which was initially reported higher than First Community’s offer but was actually lower.

The most recent analyst rating on (FCBC) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on First Community Bancshares stock, see the FCBC Stock Forecast page.