First Community Bancshares Completes Acquisition and Marks Dividend Milestone

First Community Bancshares US31983A1034

First Community Bancshares has finalized the integration of Hometown Bancshares, a strategic move that bolsters its footprint in the Southeast. This expansion coincides with the company extending its impressive record of shareholder returns, announcing its sixteenth consecutive annual dividend increase. The market is now assessing how these recent acquisitions are reflected in the bank's financial position.

The bank completed its takeover of Hometown Bancshares on January 23, adding approximately $415 million in assets to its portfolio. This transaction introduces eight new branch locations in West Virginia, bringing the total network to 60 offices spanning Virginia, West Virginia, North Carolina, and Tennessee.

Under the terms of the stock-for-stock merger, shareholders of Hometown received 11.706 shares of First Community for each share they held. Management states the primary goals are to significantly enhance lending capacity and broaden the product suite for the newly integrated customer base. Following the consolidation, total assets reached $3.26 billion by the end of the 2025 fiscal year.

Quarterly Performance and Dividend Declaration

For the fourth quarter of 2025, First Community reported net income of $12.46 million, or $0.68 per share. Full-year earnings for 2025 totaled $48.79 million. Citing this stable earnings foundation, the board of directors declared a quarterly cash dividend of $0.31 per share.

Key details regarding the distribution include:
* Record Date: February 13, 2026
* Payment Date: February 27, 2026
* Q4 2025 Net Income: $12.46 million
* Net Interest Margin: 4.53% (an increase of 17 basis points year-over-year)

This announcement is particularly notable for income-focused investors, as it represents the 40th consecutive year of uninterrupted dividend payments and the 16th straight year of annual dividend growth.

Leadership Confidence and Forward Focus

In a show of internal confidence following the merger, the company's Chief Risk Officer recently purchased 501 shares. Market observers often view such insider acquisitions as a positive signal regarding leadership's belief in the institution's post-integration stability.

With the Hometown Bancshares deal now closed and its dividend policy reaffirmed, executive attention is firmly on realizing synergies from the enlarged branch network. The effective integration of these new assets is seen as the key determinant in how efficiently the bank's increased scale will translate into enhanced profitability throughout the 2026 fiscal year. The firm's stated priority is to further fortify its capital base to support future organic growth from its core operations.