First Community Bancshares (FCBC) AI Stock Analysis

• Market Cap: $707.50M
• Dividend Yield: 8.72%
• Average Volume (3M): 64.77K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.73
• Revenue Growth: 0.89%
• EPS Growth: -2.22%
• Country: US
• Employees: 583
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.67
• Shares Outstanding: 18,314,905
• 10 Day Avg. Volume: 45,704
• 30 Day Avg. Volume: 64,768
• PEG Ratio: -20.41
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.36
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 4.88
• Enterprise Value/Ebitda: 2.61
• 1Y Price Target: $41.00
• Price Target Upside: 10.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: $45.00 ▲(21.82%Upside)

First Community Bancshares scores well due to its strong financial performance and attractive valuation, highlighted by a high dividend yield. The planned acquisition supports growth prospects. However, technical indicators present mixed signals, tempering the overall score.

First Community Bancshares Business Overview & Revenue Model

Company Description

First Community Bankshares, Inc. operates as the financial holding company for First Community Bank that provides various banking products and services. It offers demand deposit accounts, savings and money market accounts, certificates of deposit, and individual retirement arrangements; commercial, consumer, and real estate mortgage loans, as well as lines of credit; various credit and debit cards, and automated teller machine card services; and corporate and personal trust services. The company also provides wealth management services, including trust management, estate administration, and investment advisory services; and investment management services. It serves individuals and businesses across various industries, such as education, government, and health services; coal mining and gas extraction; retail trade; construction; manufacturing; tourism; and transportation. As of December 31, 2021, the company operated 49 branches, including 17 branches in West Virginia, 23 branches in Virginia, 7 branches in North Carolina, and 2 branches in Tennessee. First Community Bankshares, Inc. was founded in 1874 and is headquartered in Bluefield, Virginia.

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 fees and service charges. The company earns interest income by lending funds to individuals and businesses and charging interest on those loans. Additionally, First Community Bank invests in securities, generating interest income from these investments. Non-interest income is derived from various banking services, including transaction and maintenance fees on deposit accounts, mortgage banking fees, and wealth management services. The bank's performance is influenced by factors such as interest rate fluctuations, economic conditions in its service areas, and regulatory changes. Strategic partnerships with other financial institutions and community organizations enhance its service offerings and contribute to customer acquisition and retention.

First Community Bancshares Financial Statement Overview

Summary

First Community Bancshares demonstrates strong financial performance with robust profit margins and operational efficiency. The company has a low Debt-to-Equity ratio, indicating minimal leverage and financial stability. However, there is room for improvement in revenue growth and the Free Cash Flow Growth Rate.

Income Statement

First Community Bancshares has maintained a strong position in its income statement metrics. The Gross Profit Margin remains robust at 86.89%, and the Net Profit Margin is commendable at 28.74% TTM, indicating efficient cost management. Though the revenue growth rate is modest, the EBIT and EBITDA margins are strong at 36.63% and 40.28%, respectively, showcasing operational efficiency and stability in earnings.

Balance Sheet

The company's balance sheet reflects solid financial stability with a low Debt-to-Equity ratio of 0.002, indicating minimal leverage and low risk. The Return on Equity (ROE) is healthy at 10.18%, which is a positive sign of profitability. However, the Equity Ratio stands at 15.39%, suggesting a moderate reliance on equity financing compared to the industry norm.

Cash Flow

The cash flow statement shows a strong Free Cash Flow to Net Income ratio of 1.03, highlighting effective cash management. The Operating Cash Flow to Net Income ratio is also solid at 1.07, suggesting efficient conversion of income to cash. However, the Free Cash Flow Growth Rate shows a slight decline, indicating a potential area for improvement.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	175.89M	165.71M	142.24M	133.29M	138.20M
Gross Profit	152.62M	148.24M	134.01M	138.92M	120.07M
EBITDA	72.17M	67.66M	65.76M	72.44M	52.02M
Net Income	51.60M	48.02M	46.66M	51.17M	35.93M
Balance Sheet
Total Assets	3.26B	3.27B	3.14B	3.19B	3.01B
Cash, Cash Equivalents and Short-Term Investments	216.72M	358.52M	365.56M	126.69M	144.16M
Total Debt	906.00K	1.12M	1.87M	1.54M	964.00K
Total Liabilities	2.73B	2.77B	2.71B	2.77B	2.58B
Stockholders Equity	526.39M	503.29M	421.99M	427.77M	426.73M
Cash Flow
Free Cash Flow	54.93M	59.06M	57.86M	45.18M	42.65M
Operating Cash Flow	57.74M	61.83M	59.02M	48.22M	45.84M
Investing Cash Flow	263.91M	288.66M	-536.78M	35.35M	17.80M
Financing Cash Flow	-60.62M	-404.92M	-28.84M	137.31M	175.91M

First Community Bancshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 36.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCBC, the sentiment is Negative. The current price of 36.94 is below the 20-day moving average (MA) of 40.21, below the 50-day MA of 39.04, and below the 200-day MA of 39.66, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 32.98 is Neutral, neither overbought nor oversold. The STOCH value of 6.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FCBC.

First Community Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCBC	80 Outperform	$707.50M	14.18	9.91%	8.72%	0.89%	-2.22%
NBN	79 Outperform	$779.10M	9.69	19.16%	0.04%	33.02%	33.76%
HBT	78 Outperform	$809.12M	10.59	14.08%	3.20%	4.86%	7.89%
OSBC	76 Outperform	$793.44M	9.60	12.51%	1.39%	1.99%	-2.80%
CFFN	72 Outperform	$824.69M	13.22	5.92%	5.59%	6.49%	―
AMTB	67 Neutral	$839.09M	―	1.26%	1.79%	-6.83%	-131.00%
Sector *	61 Neutral	C$15.14B	6.41	23.28%	5.57%	33.61%	-23.69%

First Community Bancshares Corporate Events

First Community Bancshares to Acquire Hometown Bancshares

On July 19, 2025, First Community Bankshares, Inc. announced an agreement to acquire Hometown Bancshares, Inc. for approximately $41.5 million. This merger, expected to close in the first quarter of 2026, will see Hometown merge into First Community, with Union Bank, its subsidiary, merging into First Community Bank. The acquisition aligns with First Community’s strategy to expand its presence in the Parkersburg-Marietta-Vienna MSA and is anticipated to enhance its service offerings, including Trust and Wealth Management services, to Union Bank’s customers. The transaction, approved by both companies’ Boards of Directors, is subject to customary closing conditions, including shareholder and regulatory approvals.