First Community Bankshares, Inc. (FCBC): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the real mechanics of a solid regional player, and honestly, digging into the Business Model Canvas for First Community Bankshares, Inc. (FCBC) shows a bank built on community trust but clearly focused on growth. As of Q3 2025, they are managing $3.19 billion in assets, supported by a 4.43% Net Interest Margin across their 52 branch footprint, all while preparing for a major strategic move with the Hometown Bancshares merger expected in Q1 2026. To see precisely how this operation generates its $36.33 million in net income over nine months and what their key cost drivers are before that expansion hits, look at the detailed breakdown below.

First Community Bankshares, Inc. (FCBC) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships that make First Community Bankshares, Inc.'s (FCBC) strategy work, especially as they integrate the Hometown Bancshares deal. These aren't just vendors; they are essential enablers for scale and specialized service delivery. For a regional bank, these partnerships are how you punch above your weight class.

Hometown Bancshares, Inc. for Pending Merger (Expected Q1 2026)

The pending acquisition of Hometown Bancshares, Inc. is the biggest partnership move right now, set to significantly increase FCBC's footprint. The merger agreement was signed on July 19, 2025, and shareholders approved the deal in early December 2025. The transaction value was set at approximately $41.5 million. This brings in Hometown's subsidiary, Union Bank, Inc., which held about $402 million in total assets as of June 30, 2025. First Community Bankshares, Inc. reported consolidated assets of $3.19 billion as of September 30, 2025, but the combined entity is expected to hold approximately $3.6 billion in consolidated assets, expanding the branch network to 60 locations across four states.

Here's a quick look at the scale change:

Metric	First Community Bankshares, Inc. (Pre-Merger, Q3 2025)	Pro Forma Combined Entity (Expected Post-Merger)
Consolidated Assets	$3.19 billion	Approx. $3.6 billion
Branch Locations	53 (as of June 30, 2025)	60 across four states
Transaction Value	N/A	Approx. $41.5 million

Phoenix Lender Services for Government-Guaranteed Lending (SBA/USDA)

First Community Bankshares, Inc. relies on specialized partners to capture fee income from government-guaranteed lending, specifically mentioning the momentum generated through Phoenix Lender Services. Phoenix Lender Services is part of the broader Community Bankshares, Inc. family, which is demonstrating significant volume in these areas. This partnership is key for origination and fee income opportunities across SBA/USDA programs.

The performance metrics show the impact of this specialized channel:

• Community Bankshares, Inc. closed $185 million in Q2 2025 across 37 government-guaranteed loans in 20 states.
• For the first half of 2025, a total of 57 SBA and USDA loans closed, amounting to $256,038,702.
• Phoenix's year-to-date total SBA loans closed (as of June 1, 2025) reached 41 loans for $70.6 million.
• Phoenix's year-to-date total USDA loans closed (as of June 1, 2025) reached 14 loans for $160.7 million.
• Sister company Community Bank & Trust ranked as the #36 Most Active SBA Lender in the Nation as of Q3 FY25 (ending June 1, 2025), with 86 SBA approvals totaling $146,051,200.

Core Technology Providers for Digital Banking Infrastructure

To maintain its competitive edge and offer a wide variety of financial products, FCBC partners with established technology firms. You defintely need to know who runs the back office. The primary core processing partner is Jack Henry & Associates, Inc., whose Jack Henry Banking division provides the enterprise-wide automation platform.

FCBC selected Jack Henry Banking's SilverLake core processing system. This selection was made to optimize operating efficiencies and consolidate customer information from affiliates. The implementation includes a suite of complementary solutions:

• NetTeller Online Banking™ for digital access.
• Xpress by FCB Mobile App for mobile management.
• Vertex Teller Automation System™ for branch operations.
• jhaPassPort™ for ATM and debit card transaction processing.
• Yellow Hammer Fraud Detective™ and Yellow Hammer BSA™ for risk management.

The Trust Division, which administered $1.75 billion in combined assets as of September 30, 2025, also relies on this integrated technology to support its service offerings.

Local Economic Development Initiatives and Community Organizations

FCBC's identity is deeply tied to its community presence, which is reinforced through its long-term commitment to shareholders and local support. The bank has a 150-year history of community banking excellence in West Virginia.

This commitment is quantified by its consistent shareholder returns:

• FCBC has maintained regular quarterly cash dividends of $0.31 per common share through Q3 2025.
• The company reported 40 consecutive years of regular dividends as of the nine months ending September 30, 2025.
• This track record includes six straight years of dividend increases as of late 2025.
• The bank achieved a Return on Average Tangible Common Equity (ROATCE) of 13.82% for the third quarter of 2025.

Finance: draft 13-week cash view by Friday.

First Community Bankshares, Inc. (FCBC) - Canvas Business Model: Key Activities

You're looking at the core engine of First Community Bankshares, Inc. (FCBC) right now, focusing on what they actually do to generate revenue and grow. It's all about the balance sheet management and strategic moves, like the big one brewing with Hometown Bancshares, Inc.

Commercial and consumer loan origination and servicing is central, but you see some headwinds here as of late 2025. For the third quarter ending September 30, 2025, the average balance of loans was down by $116.18 million year-over-year, which is a 4.73% drop, putting pressure on interest income. Still, the bank is actively managing its credit quality; total non-performing assets fell to $16.90 million as of September 30, 2025, down from $20.54 million at the end of 2024. That's a tangible improvement in asset quality you want to see.

The second major activity is managing a deposit base of core checking, savings, and money market accounts. Deposits are the cheap funding source that fuels those loans. However, total deposits saw a dip in Q3 2025, decreasing by $60.65 million, or 2.25%. To offset this, First Community Bankshares is pushing service charges, which is a key fee-based activity. Deposit service charges specifically grew by +20.2% year-over-year in Q2 2025, showing a focus on monetizing that existing base.

For high-net-worth clients, wealth management and trust administration is a growing piece of the non-interest income puzzle. As of September 30, 2025, the Trust Division and First Community Wealth Management Inc. collectively managed approximately $1.75 billion in assets. That's up from the $1.62 billion they reported managing at the end of Q1 2025. This activity is definitely paying off, as noninterest income overall rose by 4.18% in Q3 2025, partly driven by these wealth management fees.

You can't talk about First Community Bankshares' strategy without mentioning strategic expansion through mergers and acquisitions. The proposed merger with Hometown Bancshares, Inc. is a defining activity for the near term. Here are the key numbers surrounding that deal:

Metric	Value/Detail
Transaction Value	Approximately $41.5 million
Target Subsidiary Assets (Union Bank, Inc.)	Approximately $402 million (as of June 30, 2025)
Expected Closing Date	First Quarter 2026
Combined Entity Expected Assets	Approximately $3.6 billion
Total Branch Locations (Post-Merger)	Expected to be 60
Merger-Related Costs (YTD Q3 2025)	Approximately $787,000

The bank is also focused on maintaining a strong Net Interest Margin (NIM), which is the core profitability metric for lending operations. For the third quarter of 2025, the NIM remained strong at 4.43%, which was actually an increase of 2 basis points over the same quarter in 2024. That stability, despite a decrease in loan yields, shows disciplined management of funding costs.

Here's a quick look at the operational scale and recent financial health, which supports these activities:

• Net Income (Q3 2025): $12.27 million
• Diluted EPS (Q3 2025): $0.67
• Quarterly Cash Dividend Maintained: $0.31 per share
• Total Consolidated Assets (Q3 2025): $3.19 billion
• Return on Average Tangible Common Equity (Q3 2025): 13.82%

The bank is definitely executing on its core functions, even while spending money on the upcoming integration.

First Community Bankshares, Inc. (FCBC) - Canvas Business Model: Key Resources

You're looking at the core assets First Community Bankshares, Inc. (FCBC) relies on to execute its strategy as of late 2025. These aren't just line items on a balance sheet; they are the engines of the business.

The physical and financial scale is significant. As of September 30, 2025, the company reported consolidated assets totaling approximately $3.19 billion. This base supports all lending and investment activities. The geographic footprint, which is a key resource for local market penetration, is anchored by a network of 52 branch locations across Virginia, West Virginia, North Carolina, and Tennessee as of that same date. That's physical presence where the customers are.

The wealth management segment represents a distinct, high-value resource stream. Trust and Wealth Management assets under administration totaled $1.75 billion as of the third quarter of 2025. This figure shows the trust placed in First Community Bankshares, Inc. to manage significant client wealth.

Here's a quick look at the hard numbers defining the scale of these tangible and managed resources:

Resource Metric	Value as of September 30, 2025
Consolidated Assets	$3.19 billion
Branch Locations	52
Trust & Wealth Assets Under Administration	$1.75 billion

Beyond the balance sheet, the human element is critical. The expertise of the banking personnel and their deep local market knowledge is an intangible but vital resource. To put a number to the team supporting these operations, First Community Bankshares, Inc. employed 586 full-time equivalent staff as of September 30, 2025. That's the local knowledge base you can't easily replicate.

Finally, the financial foundation provides the stability required for long-term planning and growth, like the pending merger activity. A key indicator of this stability is the commitment to shareholders, evidenced by a 40-year regular dividend streak as of 2025. This history suggests a strong capital base and consistent operational performance over decades.

Consider the composition of the human capital and stability resources:

• Highly experienced banking personnel and local market expertise
• 586 full-time equivalent staff (Q3 2025)
• Strong capital base supporting a 40-year regular dividend streak
• Consistent quarterly dividend of $0.31 per common share declared in Q3 2025

Finance: draft 13-week cash view by Friday.

First Community Bankshares, Inc. (FCBC) - Canvas Business Model: Value Propositions

You're looking at the core promises First Community Bankshares, Inc. (FCBC) makes to its customers and shareholders as of late 2025. These aren't just vague statements; they are backed by concrete operational data and financial figures from the third quarter.

Comprehensive one-stop financial services for individuals and businesses

First Community Bankshares, Inc. offers a full suite of financial tools. You can access demand deposit accounts, savings products, money market accounts, and certificates of deposit. Plus, they provide various loan products, credit card services, investment management, and insurance products through their structure. Honestly, they aim to be the only financial relationship you need in their footprint.

Community-focused banking with a personal touch and local decision-making

The bank operates across 52 branches spanning Virginia, West Virginia, North Carolina, and Tennessee. This physical presence supports their commitment to community banking, meaning decisions are made closer to where you bank, not from some distant corporate office. They employ 586 full-time equivalent staff to deliver these localized services.

Full-service wealth management and trust division for affluent clients

For clients needing more sophisticated planning, the Trust Division and First Community Wealth Management Inc. are key. As of September 30, 2025, these divisions collectively managed approximately $1.75 billion in assets. You see this value proposition reflected in the 4.18% increase in noninterest income for Q3 2025, which was driven in part by higher wealth management fees.

Stable and consistent shareholder returns via a long-term dividend policy

First Community Bankshares, Inc. has a long-standing commitment to returning capital. They declared a quarterly cash dividend of $0.31 per common share on October 28, 2025. This action marked the 40th consecutive year of regular dividends paid to common shareholders. Here's the quick math: the annual dividend is $1.24 per share, which translated to a dividend yield around 3.72% based on recent trading prices. The payout ratio, calculated from the last earnings report, was 46%, suggesting the payment is well-covered by earnings.

Prudent asset quality with non-performing assets at $16.90 million (Q3 2025)

Trust in a bank is measured by its risk management, and the trend in non-performing assets (NPAs) is a clear indicator. The company reported total non-performing assets at $16.90 million as of September 30, 2025. What this estimate hides is the context: this figure represents a decline from $20.54 million at the end of 2024, showing a defintely improving asset quality trend. Furthermore, the provision for credit losses in Q3 2025 was 0%.

You can see a snapshot of the financial health supporting these value propositions below:

Financial Metric (As of Q3 2025)	Value	Context/Comparison
Total Non-Performing Assets	$16.90 million	Down from $20.54 million at 12/31/2024
Non-Performing Loans to Total Loans	0.71%	A 0.11% reduction versus Q3 2024
Quarterly Cash Dividend	$0.31 per share	40th consecutive year of regular dividends
Assets Under Management (Wealth/Trust)	$1.75 billion	As of September 30, 2025
Net Interest Margin (NIM)	4.43%	Up 2 basis points over Q3 2024

The services offered are supported by the bank's operational scale and focus:

• Total consolidated assets stood at $3.19 billion on September 30, 2025.
• Net income for the first nine months of 2025 was $36.33 million.
• Noninterest income rose by 4.18% year-over-year for the quarter.
• Annualized Return on Average Common Equity (ROE) was 9.58% for Q3 2025.

The company is also actively pursuing growth, with shareholders approving a merger with Hometown Bancshares, Inc. in December 2025, expected to close in January 2026.

First Community Bankshares, Inc. (FCBC) - Canvas Business Model: Customer Relationships

You're looking at how First Community Bankshares, Inc. (FCBC) keeps its customers close, which is the whole point of a community bank model, even as they manage a larger footprint. This relationship focus shows up in their financial stability, like maintaining a Net Interest Margin (NIM) of 4.43% in the third quarter of 2025. That NIM strength, up 2 basis points over the same quarter in 2024, suggests their core deposit base-the foundation of community banking-is sticky.

The dedicated, personal relationship management is rooted in their physical presence. First Community Bankshares operates across 52 branches spanning Virginia, West Virginia, North Carolina, and Tennessee. This physical network supports the high-touch service model for core customers. To deliver that service, the company has 586 full-time equivalent staff on the ground. The value derived from these relationships isn't just in lending; fee income from transactional services is growing. For instance, service charges on deposits increased by 15.89% year-over-year in the first quarter of 2025.

For your high-net-worth clients, the trust-based relationship is quantified by the assets under management. As of September 30, 2025, the Trust Division and First Community Wealth Management Inc. managed approximately $1.75 billion in assets. This segment contributed to the 4.18% rise in Noninterest Income during the third quarter of 2025. Trust is the bedrock of banking, and for an analyst, it's measured by asset quality, which remains solid with Non-performing Assets (NPAs) decreasing to $16.90 million as of September 30, 2025.

Still, even a community bank needs efficiency for transactional banking needs. While the focus is personal, the data suggests customers use digital channels for routine tasks. Deposits overall saw a slight contraction in Q1 2025, decreasing by $6.77 million, or 0.25%, which management attributed to declining higher-rate time deposits, implying a shift in funding mix. This environment requires a balance between the personal touch and digital self-service options to manage funding costs effectively.

Here's a quick look at the metrics tying customer relationships to the financial results as of late 2025:

Relationship Metric	Value/Figure	Period/Context
Branch Footprint	52	Operating Locations (Q3 2025)
Wealth Management Assets	$1.75 billion	As of September 30, 2025
Service Charge on Deposits Growth	15.89%	Year-over-Year (Q1 2025)
Core Staff Count	586	Full-Time Equivalents (Q3 2025)
Net Interest Margin (NIM)	4.43%	Q3 2025
Non-Performing Assets (NPA)	$16.90 million	As of September 30, 2025

The commitment to the community model is also reflected in shareholder returns, which are a direct outcome of long-term trust. First Community Bankshares declared a quarterly cash dividend of $0.31 per common share, marking the 40th consecutive year of regular dividends. Furthermore, the annualized Return on Average Tangible Common Equity (ROTCE) for the third quarter of 2025 stood at 13.82%, showing that the relationship-driven model is translating to solid profitability for owners.

You can see the emphasis on maintaining this local connection through the following operational points:

• Focus on local economic development initiatives.
• Maintaining a strong NIM of 4.43% through a stable deposit base.
• Achieving a 13.82% ROTCE in Q3 2025.
• Incurring $787,000 in merger-related costs through the first nine months of 2025 related to the Hometown Bancshares acquisition, signaling strategic growth built on existing relationships.

Finance: draft the pro-forma deposit impact analysis from the Hometown merger by Friday.

First Community Bankshares, Inc. (FCBC) - Canvas Business Model: Channels

You're looking at how First Community Bankshares, Inc. gets its services to customers as of late 2025. It's a mix of traditional brick-and-mortar presence and digital access, which is pretty standard for a community bank scaling up.

The physical footprint remains central to their strategy, even as digital adoption grows. As of June 30, 2025, First Community Bank operated 53 branch banking locations across Virginia, West Virginia, North Carolina, and Tennessee. This number was also reported as 52 branch banking locations as of March 31, 2025. The planned acquisition of Hometown Bancshares, Inc. is set to expand this physical reach, with the combined entity expected to have 60 branch locations in four states upon closing.

For round-the-clock service, the online and mobile banking platforms are the digital front door. While specific 2025 adoption rates are proprietary, a look at recent figures shows the scale of their digital user base, with online banking users reaching 127,500. The Net Interest Margin for Q3 2025 was 4.43%, showing the core business remains strong across all channels.

The direct sales force supports the commercial side, which is a key growth area. The small to medium business banking segment reported total loan originations of $214.6 million in 2023, with a loan approval rate of 68.3%.

Wealth management is delivered through dedicated advisors in the Trust Division and its subsidiary. As of September 30, 2025, the Trust Division and First Community Wealth Management Inc. managed approximately $1.75 billion in assets. This is up from $1.66 billion managed as of June 30, 2025. The average client portfolio value for wealth management was reported at $875,000 in a prior analysis.

Here's a quick snapshot of the key quantitative channel metrics available:

Channel Component	Metric	Value as of Late 2025 Data Point
Physical Branch Network	Number of Locations (Mid-2025)	52 to 53
Physical Branch Network	Projected Locations Post-Merger	60
Online/Mobile Banking	Online Banking Users (Latest Available)	127,500
Wealth Management/Trust	Assets Under Management (AUM) (Q3 2025)	Approx. $1.75 billion
Wealth Management/Trust	AUM (Q2 2025)	$1.66 billion
Direct Sales (Commercial)	2023 Loan Originations (Proxy)	$214.6 million

You can see the emphasis on maintaining a physical presence while growing the AUM through specialized advisory offices. The bank's total consolidated assets stood at $3.19 billion as of September 30, 2025.

The ways customers interact with First Community Bankshares, Inc. include:

• Physical branch network across Virginia, West Virginia, North Carolina, and Tennessee.
• Online banking users: 127,500.
• Mobile banking platforms for 24/7 account access.
• Direct sales force supporting commercial and SBA/USDA lending activities.
• Dedicated wealth management advisors and Trust Division offices.
• Trust Division and First Community Wealth Management AUM: $1.75 billion as of September 30, 2025.

The quarterly cash dividend declared in late 2025 was $0.31 per common share.

Finance: draft 13-week cash view by Friday.

First Community Bankshares, Inc. (FCBC) - Canvas Business Model: Customer Segments

You're looking at the core groups First Community Bankshares, Inc. (FCBC) serves across its operational footprint in late 2025. This isn't just about who deposits money; it's about the distinct needs they meet in the Virginia, West Virginia, North Carolina, and Tennessee markets.

Individuals and families in regional, community-focused markets

This segment forms the base of the community banking model. The company operates through 52 branches as of September 30, 2025, spanning Virginia, West Virginia, North Carolina, and Tennessee. The focus here is on personalized service within these regional markets. Evidence of this customer base interaction is seen in the noninterest income growth, where service charges on deposits rose 10.7% year-over-year in the second quarter of 2025. However, the overall deposit base showed some contraction, with total deposits declining $60.65 million, or 2.25%, in the third quarter of 2025 compared to the end of 2024.

Small-to-mid-sized businesses (SMEs) seeking commercial and SBA loans

First Community Bankshares, Inc. supports local commerce through its commercial lending. While a direct breakdown of the loan portfolio by SME versus large corporate is not explicitly stated for late 2025, the company highlights capabilities in government-guaranteed lending, specifically mentioning SBA/USDA programs, which typically target smaller enterprises. The overall loan portfolio experienced a reduction in average balance, decreasing by $116.18 million, or 4.73%, in the third quarter of 2025 versus the prior year period. The allowance for credit losses to total loans stood at 1.36% as of September 30, 2025.

Affluent individuals requiring wealth management and trust services

This group is served by the Trust Division and First Community Wealth Management Inc. As of September 30, 2025, these entities collectively managed approximately $1.75 billion in assets. This represents growth from the $1.62 billion managed as of March 31, 2025. The fee income generated from these services contributes to overall revenue resilience. One historical data point suggests an average client portfolio value of $875,000 across 3,742 total wealth management accounts.

Here's a quick look at the scale of the wealth management segment:

Metric	Value as of September 30, 2025	Value as of March 31, 2025
Assets Under Management (AUM)	$1.75 billion	$1.62 billion
Total Consolidated Assets (Bank)	Data not explicitly stated for Q3 2025	$3.23 billion

Shareholders seeking stable income from a long-term dividend payer

For shareholders, the focus is on consistent capital return. First Community Bankshares, Inc. declared a quarterly cash dividend of $0.31 per common share for the third quarter of 2025, payable on November 28, 2025. This action marks the 40th consecutive year of regular dividends paid to common shareholders. The annualized dividend yield was reported at 3.73% based on a previous close price. The company also paid a special cash dividend of $2.07 per share in February 2025.

The commitment to this segment is clear:

• Quarterly Dividend (Q3 2025): $0.31 per share
• Consecutive Years of Regular Dividends: 40
• Special Dividend Paid (Q1 2025): $2.07 per share
• Annualized Dividend: $1.24

First Community Bankshares, Inc. (FCBC) - Canvas Business Model: Cost Structure

You're looking at the core costs First Community Bankshares, Inc. (FCBC) is managing as it navigates a major acquisition and general operating pressures in late 2025. The cost structure is heavily influenced by personnel, funding costs, and the integration of the proposed Hometown Bancshares, Inc. deal.

Personnel costs are a significant driver of noninterest expense. Employee salaries and benefits saw a substantial year-over-year increase of 14.9% in Q2 2025, which translated to an absolute increase of $1.86 million for that quarter alone, contributing to the overall noninterest expense rise of $0.558 million or 2.24% year-over-year for Q2 2025. To be fair, Q1 2025 showed a smaller increase in salaries and benefits at $754 thousand, or 5.99% year-over-year.

The cost of funding remains critical. Interest expense on interest-bearing liabilities showed volatility based on balance and yield movements. For the first quarter of 2025, this expense increased by $472 thousand, driven by an 11 basis point increase in yield. However, by the second quarter of 2025, interest expense on interest-bearing liabilities actually decreased by $145 thousand, reflecting a 3 basis point decrease in yield alongside a balance reduction.

Physical infrastructure costs are tied to the branch network. First Community Bankshares currently operates 52+ physical branch locations across Virginia, West Virginia, North Carolina, and Tennessee. The planned merger with Hometown Bancshares, Inc. is expected to increase this footprint to 60 branch locations upon closing, which will naturally impact future operating costs, though specific branch operating cost figures separate from total noninterest expense aren't broken out in the latest reports. Technology and data processing expenses for digital platforms are embedded within the overall noninterest expense category, which rose $1.56 million or 6.66% in Q1 2025 compared to the prior year.

Strategic, non-recurring costs are also present due to the pending acquisition. First Community Bankshares has incurred approximately $787,000 in merger-related transaction costs through the first nine months of 2025. This specific expense was noted as a $787 thousand increase in noninterest expense for Q3 2025 when compared to the same period in 2024.

Here's a quick look at the key expense movements we see in the recent reporting periods:

Expense Component/Metric	Period	Change Amount	Change Percentage
Salaries and Benefits Increase	Q2 2025 YoY	+$1.86 million	+14.9%
Salaries and Benefits Increase	Q1 2025 YoY	+$754 thousand	+5.99%
Interest Expense on Liabilities Change	Q1 2025 YoY	+$472 thousand	Increase in Yield of 11 bps
Interest Expense on Liabilities Change	Q2 2025 YoY	-$145 thousand	Decrease in Yield of 3 bps
Total Noninterest Expense Increase	Q2 2025 YoY	+$0.558 million	+2.24%
Total Noninterest Expense Increase	Q1 2025 YoY	+$1.56 million	+6.66%
Merger Transaction Costs (Cumulative)	9M 2025	$787,000	N/A

The overall cost picture for First Community Bankshares, Inc. involves managing these core operational costs while absorbing the one-time merger expenses. You can see the pressure points:

• Personnel Costs: Rising at nearly 15% year-over-year in Q2 2025.
• Funding Costs: Volatile, with yields on interest-bearing liabilities causing both increases and decreases in expense quarter-over-quarter.
• Branch Network: Maintaining 52+ locations, soon to be 60 post-merger.
• Strategic Costs: The $787,000 in merger costs through September 30, 2025, is a direct, temporary drag on reported expenses.

Finance: draft 13-week cash view by Friday.

First Community Bankshares, Inc. (FCBC) - Canvas Business Model: Revenue Streams

You're looking at how First Community Bankshares, Inc. (FCBC) brings in money, which is pretty standard for a community bank but with some clear recent trends. The core of the revenue picture is definitely Net Interest Income (NII), which comes from the spread between what the bank earns on its assets-like commercial, consumer, and real estate loans-and what it pays out on its liabilities, such as deposits. The Net Interest Margin (NIM) for the second quarter of 2025 was a solid 4.37%. That NIM held steady sequentially from the first quarter of 2025's 4.34%.

The other major piece is Non-interest income, which is fee-based revenue. This area showed real momentum in the first half of 2025. Non-interest income grew by approximately 10.7% year-over-year in Q2 2025. This growth was particularly strong in specific fee categories.

Here's a quick look at the drivers within that non-interest income:

• Service charges on deposits saw a significant jump, increasing by 20.2% year-over-year in Q2 2025.
• Fee income generated from wealth management and trust services is supported by the Trust Division and First Community Wealth Management Inc. managing approximately $1.75 billion in assets as of September 30, 2025.

To give you a clearer picture of the top-line performance leading up to late 2025, here are some key figures from the reported periods:

Metric	Period Ending June 30, 2025 (6 Months)	Period Ending September 30, 2025 (Q3)	Period Ending June 30, 2025 (Q2)
Net Income	$24.06 million	$12.26 million	$12.25 million
Net Interest Margin (NIM)	N/A	N/A	4.37%
Revenue (S&P-defined)	N/A	N/A	$41.28 million

When you look at the longer-term profitability metric, the bottom line for the year so far is important. Net income for the first nine months of 2025 totaled $36.33 million. That figure reflects the combined earnings from both the interest-earning activities and the growing fee-based services. It's the result of the whole revenue engine working. Finance: draft 13-week cash view by Friday.