First Community Bankshares, Inc. (FCBC) declared a special cash dividend of $1.00 per common share, to be paid on or about January 16, 2026, to shareholders of record on or about January 2, 2026. The special dividend totals approximately $18.32 million, representing the company’s surplus capital after regular dividends and share repurchases.
The dividend follows a year‑to‑date performance that shows a modest decline in earnings. First nine months of 2025 net income was $36.33 million, down 5.80% from $38.56 million in the same period of 2024. During that period, FCBC paid $17.02 million in regular dividends and repurchased $1.85 million of shares, leaving a surplus that the board chose to return to shareholders. The company’s payout ratio of 46.3% and a record of 13 consecutive years of dividend increases underscore a long‑standing commitment to shareholder returns.
The board’s decision reflects FCBC’s capital management policy, which prioritizes returning excess earnings when capital needs for growth and operations are met. Management cited strong loan growth, an improved net interest margin of 4.43% in Q3 2025, and effective cost control as key drivers of the surplus capital. The dividend is not considered a recurring event; the board noted that special dividends may be declared from time to time when earnings exceed capital requirements, but they are not guaranteed.
The dividend announcement comes amid the company’s merger with Hometown Bancshares, which shareholders have approved and is expected to close in January 2026. The capital distribution is part of FCBC’s broader capital allocation strategy and does not alter the company’s forward guidance. The merger is a strategic expansion that will broaden FCBC’s geographic footprint and product mix, but the special dividend remains a separate, shareholder‑friendly action.
The special dividend signals a healthy capital position and confidence in future earnings, while reinforcing FCBC’s disciplined approach to capital allocation. Management remains focused on sustaining growth, maintaining strong margins, and preserving flexibility for future opportunities. The dividend does not change the company’s guidance, but it highlights the board’s willingness to return excess capital to shareholders when conditions allow.
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