About First Community Bankshares

First Community Bankshares, Inc. operates as the financial holding company for First Community Bank that provides banking products and services to individual and commercial customers. The bank offers wealth management and investment advice through its Trust Division and wholly owned subsidiary First Community Wealth Management. Market Area The company operates branch locations in Virginia, West Virginia, North Carolina, and Tennessee through its sole operating segment, Community Banking. The company serves a diverse base of individuals and businesses across a variety of industries, such as education; government and health services; retail trade; construction; manufacturing; tourism; coal mining and gas extraction; and transportation. Loans Loans are grouped into commercial, consumer real estate, and consumer and other loan segments. Commercial Loans – This segment consists of loans to small and mid-size industrial, commercial, and service companies. Commercial real estate projects represent a variety of sectors of the commercial real estate market, including single family and apartment lessors, commercial real estate lessors, and hotel/motel operators. Consumer Real Estate Loans – This segment consists of largely of loans to individuals within the company’s market footprint for home equity loans and lines of credit and for the purpose of financing residential properties. Consumer and Other Loans – This segment consists of loans to individuals within the company’s market footprint that include, but are not limited to, automobile, credit cards, personal lines of credit, boats, mobile homes, and other consumer goods. Investment Securities As of December 31, 2022, the company’s securities included U.S. agency securities; U.S. Treasury securities; municipal securities; corporate notes; and mortgage-backed agency securities. Deposits As of December 31, 2022, the company’s deposits included noninterest-bearing demand deposits; and interest-bearing deposits, such as interest-bearing demand deposits, money market accounts, savings deposits, certificates of deposit, and individual retirement accounts. Supervision and Regulation The company is a bank holding company registered under the Bank Holding Company Act of 1956, as amended (BHC Act) and a financial holding company under the Gramm-Leach-Bliley Act of 1999 (GLB Act). The company and its subsidiaries are subject to supervision, regulation, and examination by the Board of Governors of the Federal Reserve System (Federal Reserve). The company is also subject to the disclosure and regulatory requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended (Exchange Act), as administered by the Securities and Exchange Commission (SEC). The bank is a Virginia chartered bank and a member of the Federal Reserve subject to supervision, regulation, and examination by the Virginia Bureau of Financial Institutions and the Federal Reserve Bank (FRB) of Richmond. The bank is a member of the Federal Deposit Insurance Corporation (FDIC), and its deposits are insured by the FDIC to the extent provided by law. In order to maintain financial holding company status, the company and the bank must be well-capitalized and well-managed under applicable Federal Reserve regulations and have received at least a satisfactory rating under the Community Reinvestment Act (CRA). The Federal Reserve Act (FRA) and Federal Reserve Regulation W place restrictions on ‘covered transactions’ between the bank and its affiliates, including the company. The FRA and Federal Reserve Regulation O place restrictions on loans between the company and the bank and their directors, executive officers, principal shareholders, affiliates, and interests of those directors, executive officers, and principal shareholders. Substantially all of the bank’s deposits are insured up to applicable limits by the Deposit Insurance Fund (DIF) of the FDIC and are subject to quarterly deposit insurance assessments to maintain the DIF. The bank received a rating of satisfactory in its most recent CRA examination. The company is subject to certain consumer laws and regulations that are designed to protect consumers in transactions with banks. These laws and regulations include the Mortgage Reform and Anti-Predatory Lending Act, the Truth in Lending Act, the Truth in Savings Act, the Home Mortgage Disclosure Act, the Electronic Funds Transfer Act, the Expedited Funds Availability Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Fair Debt Collections Act, the Right to Financial Privacy Act, the Fair Housing Act, and various state law counterparts. The bank is subject to the requirements of the Bank Secrecy Act and the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT Act) of 2001. Section 404 of the Sarbanes-Oxley Act requires management to undertake an assessment of the adequacy and effectiveness of the company’s internal controls over financial reporting and requires its auditors to attest to and report on the effectiveness of these controls. History First Community Bankshares, Inc. was founded in 1874. The company was incorporated under the laws of the Commonwealth of Virginia in 2018.