Unassociated Document

Exhibit 99.1

NEWS RELEASE



FOR IMMEDIATE RELEASE: October 28, 2009	FOR MORE INFORMATION, CONTACT: David D. Brown
	(276) 326-9000

First Community Bancshares, Inc. Announces Third Quarter 2009 Results

Bluefield, Virginia – First Community Bancshares, Inc. (NASDAQ: FCBC) (www.fcbinc.com) today reported a net loss for the quarter ended September 30, 2009, of $11.30 million, or $0.65 per common share, and a net loss available to common shareholders for the third quarter of 2009 of $12.31 million, or $0.71 per common share. Net loss and net loss available to common shareholders amounted to $3.67 million, or $0.26 per share, and $5.83 million, or $0.42 per share, respectively, for the nine months ended September 30, 2009. The losses recognized during the three and nine months ended September 30, 2009, were due to after-tax securities impairment charges of $19.33 million and $21.83 million, respectively, and are discussed in more detail below. Core earnings for the third quarter of 2009 amounted to $4.32 million, or $0.25 per diluted share, and $14.53 million, or $1.04 per diluted share for the nine months ended September 30, 2009 (see the attached reconciliation of GAAP to core earnings).

Third Quarter 2009 Highlights –

Repaid the U. S. Treasury’s $41.50 million preferred stock investment

Completed the TriStone Community Bank acquisition and integration

Continued stable and strong asset quality metrics with a ratio of non-performing assets to total assets at September 30, 2009 of 71 basis points

Net interest margin increased to 3.68%, up six basis points from the quarter ended June 30, 2009

Declared cash dividend of $0.10 per share of common stock

First Community Bank, N. A. remains “well-capitalized” as defined by regulatory measures with a total risk-based capital ratio of 11.4% and a Tier 1 leverage ratio of 8.7% at September 30, 2009

Commenting on third quarter results, Chief Executive Officer John M. Mendez said, “We have achieved a great deal in the third quarter and throughout 2009. The TriStone Community Bank acquisition, our continued loan quality, our capital raise and repayment of the TARP investment have resulted in a stronger balance sheet and with greater earnings capacity, which has positioned us for success in 2010. The impairment charges are certainly a distraction and provide additional confirmation of how difficult the economy has been for the financial services industry. Although we have not completely eliminated our exposure to our investment securities, we believe that we have significantly reduced an element of risk in our balance sheet and will evaluate our position in these securities very closely in the fourth quarter.”

On July 31, 2009, the Company completed its acquisition of TriStone Community Bank in Winston-Salem, North Carolina. TriStone Community Bank’s Chief Executive Officer, Simpson O. “Skip” Brown, remains with First Community Bank and has assumed the role of Regional President for the Winston-Salem and East Tennessee areas.

Net Interest Income

Tax-equivalent net interest margin for the third quarter of 2009 was 3.68%. Net interest income was $17.54 million, an increase of $1.21 million, or 7.43%, from the third quarter of 2008. Interest income was $27.13 million, an increase of $580 thousand, or 2.18%, from the third quarter of 2008. The yield on loans dropped to 6.14% from 6.53% while average loans increased $187.75 million to $1.36 billion from the third quarter 2008, which was reflective of the acquisitions of Coddle Creek Financial and TriStone Community Bank in November 2008 and July 2009, respectively. Yields on loans have dropped as a direct result of the precipitous declines in market rates of interest as the prime lending rate decreased 175 basis points to 3.25% in the third quarter of 2009 from 5.00% in the third quarter of 2008.

- 1 -

The Company also maintained an average federal funds sold position of $65.52 million through the third quarter. This increased liquidity position continued to have a negative impact on net interest margin.

Third quarter interest expense was $9.59 million, a decrease of $633 thousand, or 6.60%, from the third quarter of 2008. Third quarter deposit costs increased $314 thousand compared to the third quarter of 2008, while the average rate paid on interest-bearing deposits decreased 44 basis points to 1.93%. Compared to the third quarter of 2008, interest costs on borrowings decreased $947 thousand to $2.60 million, while the average balance decreased $69.48 million due to the redemption of various wholesale borrowings and the Company’s relatively liquid balance sheet. The cost of interest-bearing liabilities decreased 45 basis points during the third quarter of 2009 compared to the third quarter of 2008. Average interest bearing liabilities increased $205.44 million, or 13.01%, compared with the third quarter of 2008, and included a decrease of $20.56 million in Federal Home Loan Bank (“FHLB”) borrowings.

Non-interest Income

During the third quarter of 2009, wealth management revenues increased 1.46% to $971 thousand, and at September 30, 2009 the Wealth Management Division reported $841 million in assets under management. Service charges on deposit accounts were $3.66 million for the third quarter of 2009, a decrease of $149 thousand, or 4.07%, from the third quarter of 2008. Insurance commissions were $1.57 million for the third quarter of 2009, an increase of $327 thousand, or 26.37%, from the same period in 2008. These revenues reflect GreenPoint Insurance Group’s acquisition of Carr & Hyde Insurance in December 2008. Also, during the third quarter the Company recognized a preliminary gain on the acquisition of TriStone Community Bank of approximately $4.49 million.

Investment Securities Impairment Charges

The Company maintains a portfolio of investment securities that include pooled trust preferred securities. These securities generally represent obligations of banks and, to a lesser extent, insurance companies and real estate investment trusts. For the year ended December 31, 2008 and the six months ended June 30, 2009, the Company previously reported non-cash other-than-temporary impairment (“OTTI”) charges of $15.46 million and $3.37 million, respectively, on its pooled trust preferred securities. During the third quarter of 2009, an increasing number of the banks and other companies that have issued obligations that collateralize the pooled trust preferred securities that the Company holds have defaulted or deferred the payment of interest, which adversely impacted the cash flows from such pooled trust preferred securities.

In order to enhance its methodology and assumptions for predicting individual issuer defaults within each of the securities, the Company recently migrated to a proprietary prediction analysis that considers many data points regarding the individual banks underlying the securities. Application of this predictive analysis to our pooled trust preferred securities portfolio resulted in an increase of projected default rates by issuers of the securities.

During the third quarter of 2009, the Company recognized pre-tax credit-related net impairment losses on its pooled trust preferred securities of $30.53 million, or $1.10 per common share on an after-tax basis. Both the credit-related net impairment losses and other comprehensive income (“OCI”) noncredit-related losses primarily reflect the continuing deterioration of some of the banks that underlie these securities. The majority of the impairment recognized in the third quarter is related to the pooled trust preferred securities where the underlying collateral is predominantly from banking institutions. The pooled trust preferred securities were all originally rated “A” and had a carrying value at 21% of par at September 30, 2009. The Company also recognized additional impairment of $284 thousand on two equity securities in the third quarter.

Non-interest Expenses

Excluding OTTI, non-interest expenses for the third quarter of 2009 increased $3.38 million, or 23.48%, from the third quarter of 2008. The large increase is due to increased federal Deposit Insurance Corporation (“FDIC”) deposit insurance premiums and merger-related expenses. Salaries and employee benefits increased $489 thousand, or 6.63%, from the third quarter of 2008. Coddle Creek Financial branches accounted for an increase in salaries and employee benefits of $294 thousand, TriStone Community Bank branches accounted for an increase of $148 thousand, and GreenPoint Insurance Group’s acquisitions accounted for an increase of $309 thousand. The remainder of the Company showed an overall decrease in salaries and benefits of $262 thousand.

- 2 -

Occupancy and furniture and equipment expenses decreased $27 thousand, or 1.23%, during the third quarter of 2009 as compared to the same period in the prior year. Other operating expenses increased $268 thousand, or 5.86%, compared to the third quarter of 2008. The third quarter of 2009 efficiency ratio was 59.04% compared to 56.62% in the third quarter of 2008.

The acquisition of TriStone Community Bank was completed in July 2009 and its integration is largely complete. The Company is on track to realize its projected pre-tax cost savings of approximately $1.00 million, or 25%. During the third quarter of 2009 the Company incurred expenses related to the merger of approximately $1.51 million.

Credit Quality

The Company’s loan quality measures at September 30, 2009 continue to compare favorably to the Company’s peers and the industry. Total loan delinquencies of 30 days or more, including non-accrual loans, as a percent of total loans were 1.62% at September 30, 2009 compared with 1.35% at June 30, 2009. The ratio of allowance for loan losses as a percent of loans held for investment was 1.25% at September 30, 2009 compared with 1.31% at June 30, 2009. Accounting for the acquisition of TriStone Community Bank caused this ratio to decline by approximately 13 basis points, as no allowance was recorded at acquisition. Non-performing assets increased slightly to $16.23 million at September 30, 2009, or 0.71% of total assets, from $15.26 million at June 30, 2009. Non-performing loans as a percentage of loans held for investment decreased to 0.88% at September 30, 2009, compared with 0.92% at June 30, 2009.

Balance Sheet

Since December 31, 2008, consolidated assets have increased $165.03 million to $2.30 billion at September 30, 2009, due to the acquisition of TriStone Community Bank, an increasing deposit base, and $61.67 million in new capital from the June 2009 equity offering. Total stockholders’ equity for the Company was $265.54 million, resulting in a book value per common share outstanding of $15.02 at September 30, 2009, compared to $220.34 million and $15.46 per common share at December 31, 2008. In September 2009, the Company’s board of directors announced a $0.10 per share dividend on its common stock. 2009 is the Company’s 24th consecutive year of paying dividends to common shareholders.

The Company will host an investor and media teleconference and webcast on Thursday, October 29, 2009 at 11:00 a.m. To access the teleconference, the toll-free number is (877) 407-8033. Alternatively, individuals may listen to the live or archived webcast of the conference call. To listen to the webcast, visit www.fcbinc.com and follow the link under the Current News Releases section. The Company’s press release and financial summary will be available in this section, as well. Copies of the Company’s third quarter 2009 earnings press release and financial summary will also be made available upon request via fax, email or postal service mail. To request a copy, contact David D. Brown, Chief Financial Officer, at (800) 425-0839.

First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a $2.30 billion financial holding company and is the parent company of First Community Bank, N. A. First Community Bank, N. A. operates through sixty-one locations in the five states of Virginia, West Virginia, North Carolina, South Carolina, and Tennessee. First Community Bank, N. A. offers wealth management services through its Trust & Financial Services Division and Investment Planning Consultants, Inc., a registered investment advisory firm which offers wealth management and investment advice. The Company’s wealth management division managed assets with a market value of $841 million at September 30, 2009. First Community is also the parent company of GreenPoint Insurance Group, Inc., a full-service insurance agency located in High Point, North Carolina. First Community Bancshares, Inc.’s common stock is traded on the NASDAQ Global Select Market under the symbol, “FCBC”. Additional investor information can be found on the Internet at www.fcbinc.com.

This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports, including but not limited to the Annual Report on Form 10-K for the most recent year ended. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements contained within this news release.

- 3 -

First Community Bancshares, Inc.

Condensed Consolidated Statements of Income/(Loss)

(Unaudited)		Three Months Ended						Nine Months Ended
(In Thousands, Except Share and Per Share Data)		September 30,						September 30,
		2009			2008			2009			2008

Interest	Interest and fees on loans held for investment	$	21,064		$	19,266		$	60,619		$	60,394
Income	Interest on securities-taxable		4,562			5,567			14,903			17,101
	Interest on securities-nontaxable		1,449			1,708			4,527			5,775
	Interest on federal funds sold and deposits		55			9			133			260
	Total interest income		27,130			26,550			80,182			83,530
Interest	Interest on deposits		6,998			6,684			21,641			22,543
Expense	Interest on borrowings		2,596			3,543			8,251			11,679
	Total interest expense		9,594			10,227			29,892			34,222
	Net interest income		17,536			16,323			50,290			49,308
	Provision for loan losses		3,418			3,461			8,057			4,721
	Net interest income after provision for loan losses		14,118			12,862			42,233			44,587
Non-Interest	Wealth management income		971			957			3,088			2,954
Income	Service charges on deposit accounts		3,659			3,808			10,307			10,370
	Other service charges and fees		1,156			1,040			3,467			3,225
	Insurance commissions		1,567			1,240			5,523			3,730
	Net impairment losses recognized in earnings		(30,811	)		(51	)		(34,796	)		(51	)
	Security gains		866			163			2,930			2,133
	Acquisition gain		4,493			-			4,493			-
	Other operating income		815			675			1,750			2,336
	Total non-interest income		(17,284	)		7,832			(3,238	)		24,697
Non-Interest	Salaries and employee benefits		7,860			7,371			23,131			22,741
Expense	Occupancy expense of bank premises		1,266			1,297			4,202			3,717
	Furniture and equipment expense		928			924			2,758			2,798
	Amortization of intangible assets		262			166			751			484
	FHLB debt prepayment fees		-			-			88			1,647
	FDIC premiums and assessments		1,109			62			2,584			141
	Merger-related expenses		1,505			-			1,580			-
	Other operating expense		4,838			4,570			14,011			13,904
	Total non-interest expense		17,768			14,390			49,105			45,432
	(Loss) income before income taxes		(20,934	)		6,304			(10,110	)		23,852
	Income tax (benefit) expense		(9,633	)		1,753			(6,444	)		6,751
	Net (loss) income		(11,301	)		4,551			(3,666	)		17,101
	Dividends on preferred stock		1,011			-			2,160			-
	Net (loss) income available to common shareholders	$	(12,312	)	$	4,551		$	(5,826	)	$	17,101
Per	Basic earnings per common share (EPS)	$	(0.71	)	$	0.42		$	(0.42	)	$	1.56
Share	Diluted earnings per common share (DEPS)	$	(0.71	)	$	0.41		$	(0.42	)	$	1.54
	Weighted average shares outstanding:
	Basic		17,427,434			10,956,867			13,918,599			10,992,901
	Diluted		17,427,434			11,034,059			13,918,599			11,071,925
	For the period:
	Return on average assets		-2.15	%		0.90	%		-0.35	%		1.12	%
	Return on average common equity		-18.78	%		9.39	%		-3.28	%		11.09	%
	Cash dividends per common share	$	0.10		$	0.28		$	0.30		$	0.84

- 4 -

First Community Bancshares, Inc.

Condensed Quarterly Income/(Loss) Statements

		As of and for the Quarter Ended
(Unaudited)		September 30,			June 30,			March 31,			December 31,			September 30,
(In Thousands, Except Share and Per Share Data)		2009			2009			2009			2008			2008

Interest	Interest and fees on loans held for investment	$	21,064		$	19,571		$	19,984		$	19,830		$	19,266
Income	Interest on securities-taxable		4,562			5,177			5,164			5,613			5,567
	Interest on securities-nontaxable		1,449			1,402			1,676			1,746			1,708
	Interest on federal funds sold and deposits		55			39			39			46			9
	Total interest income		27,130			26,189			26,863			27,235			26,550
Interest	Interest on deposits		6,998			7,076			7,567			7,249			6,684
Expense	Interest on borrowings		2,596			2,792			2,863			3,459			3,543
	Total interest expense		9,594			9,868			10,430			10,708			10,227
	Net interest income		17,536			16,321			16,433			16,527			16,323
	Provision for loan losses		3,418			2,552			2,087			2,701			3,461
	Net interest income after provision
	for loan losses		14,118			13,769			14,346			13,826			12,862
Non-Interest	Wealth management income		971			1,133			984			1,146			957
Income	Service charges on deposit accounts		3,659			3,491			3,157			3,697			3,808
	Other service charges and fees		1,156			1,133			1,178			1,023			1,040
	Insurance commissions		1,567			1,639			2,317			1,258			1,240
	Net impairment losses recognized in earnings		(30,811	)		(3,776	)		(209	)		(29,923	)		(51	)
	Securities gains (losses)		866			1,653			411			(234	)		163
	Acquisition gain		4,493			-			-			-			-
	Other operating income		815			349			586			659			675
	Total non-interest income		(17,284	)		5,622			8,424			(22,374	)		7,832
Non-Interest	Salaries and employee benefits		7,860			7,405			7,866			7,135			7,371
Expense	Occupancy expense of bank premises		1,266			1,333			1,603			1,385			1,297
	Furniture and equipment expense		928			892			938			942			924
	Amortization of intangible assets		262			244			245			205			166
	FHLB debt prepayment fees		-			88			-			-			-
	FDIC premiums and assessments		1,109			1,287			188			61			62
	Merger-related expenses		1,505			74			1			-			-
	Other operating expense		4,838			4,820			4,353			5,305			4,570
	Total non-interest expense		17,768			16,143			15,194			15,033			14,390
	(Loss) income before income taxes		(20,934	)		3,248			7,576			(23,581	)		6,304
	Income tax (benefit) expense		(9,633	)		843			2,346			(9,561	)		1,753
	Net (loss) income		(11,301	)		2,405			5,230			(14,020	)		4,551
	Preferred dividends		1,011			578			571			255			-
	Net (loss) income available to
	common shareholders	$	(12,312	)	$	1,827		$	4,659		$	(14,275	)	$	4,551
Per	Basic EPS	$	(0.71	)	$	0.14		$	0.40		$	(1.27	)	$	0.42
Share	Diluted EPS	$	(0.71	)	$	0.14		$	0.40		$	(1.27	)	$	0.41
	Cash dividends per common share	$	0.10		$	0.20		$	-		$	0.28		$	0.28
	Weighted average shares outstanding:
	Basic		17,427,434			12,696,202			11,567,769			11,252,183			10,956,867
	Diluted		17,427,434			12,741,080			11,616,568			11,252,183			11,034,059

- 5 -

First Community Bancshares, Inc.

Reconciliation of GAAP Net Income/(Loss) to Core Earnings

(Unaudited)	Three Months Ended						Nine Months Ended
(In Thousands, Except Per Share Data)	September 30,						September 30,
	2009			2008			2009			2008

Net (loss) income, GAAP	$	(11,301	)	$	4,551		$	(3,666	)	$	17,101
Non-GAAP adjustments:
Security (gains)/losses		(866	)		(163	)		(2,930	)		(2,133	)
Acquisition gain		(4,493	)		-			(4,493	)		-
Merger expenses		1,505						1,580
FHLB debt prepayment fees		-			-			88			1,647
Other-than-temporary security impairments		30,811			51			34,796			51
FDIC special assessments		-			-			988			-
Other non-core, non-recurring items		525			243			1,558			686
Total adjustments to core earnings		27,482			131			31,587			251
Tax effect		11,862			51			13,391			98
Core earnings, non-GAAP	$	4,319		$	4,631		$	14,530		$	17,254

Core return on average assets		0.75	%		0.92	%		0.88	%		1.13	%
Core return on average equity		6.59	%		9.56	%		8.17	%		11.19	%
Core diluted earnings per share	$	0.25		$	0.42		$	1.04		$	1.56

Efficiency Ratio Calculation

(Unaudited)	Three Months Ended						Nine Months Ended
(In Thousands)	September 30,						September 30,
	2009			2008			2009			2008

Noninterest expenses, GAAP	$	17,768		$	14,390		$	49,105		$	45,432
Non-GAAP adjustments:
Merger expenses		(1,505	)		-			(1,580	)		-
FHLB debt prepayment fees		-			-			(88	)		(1,647	)
Other non-core, non-recurring items		(525	)		(243	)		(2,546	)		(686	)
Adjusted noninterest expenses		15,738			14,147			44,891			43,099

Net interest income, GAAP		17,536			16,323			50,290			49,308
Noninterest income, GAAP		(17,284	)		7,832			(3,238	)		24,697
Non-GAAP adjustments:
Tax-equivalency adjustment		793			941			2,482			3,171
Security (gains)/losses		(866	)		(163	)		(2,930	)		(2,133	)
Other-than-temporary security impairments		30,811			51			34,796			51
Acquisition gain		(4,493	)		-			(4,493	)		-
Adjusted net interest and noninterest income		26,497			24,984			76,907			75,094

Efficiency Ratio		59.40	%		56.62	%		58.37	%		57.39	%

- 6 -

First Community Bancshares, Inc.

Quarterly Balance Sheets

	For the Quarter Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2009			2009			2009			2008			2008
(Unaudited)	(Dollars In Thousands)

Cash and due from banks	$	51,905		$	116,095		$	100,881		$	39,310		$	53,238
Interest-bearing deposits with banks		3,352			28,354			79			7,129			664
Securities available for sale		575,800			521,879			549,664			520,723			513,001
Securities held to maturity		7,452			7,725			8,471			8,670			9,043
Loans held for sale		4,376			802			1,445			1,024			140
Loans held for investment, net of unearned income		1,396,617			1,269,443			1,276,790			1,298,159			1,168,286
Less allowance for loan losses		17,444			16,678			16,555			15,978			14,510
Net loans		1,383,549			1,253,568			1,261,680			1,283,205			1,153,916
Premises and equipment		57,695			55,193			54,893			55,024			50,504
Other real estate owned		3,955			3,615			3,114			1,326			896
Interest receivable		9,046			8,934			8,848			10,084			9,156
Intangible assets		90,134			89,534			89,338			89,612			72,222
Other assets		115,453			118,313			122,173			118,231			104,817
Total Assets	$	2,298,341		$	2,203,210		$	2,199,141		$	2,133,314		$	1,967,457
Deposits:
Demand	$	198,107		$	202,543		$	207,947		$	199,712		$	214,582
Interest-bearing demand		216,184			195,905			194,934			185,117			186,403
Savings		351,450			311,435			319,007			309,577			312,451
Time		896,716			837,475			861,556			809,352			636,108
Total Deposits		1,662,457			1,547,358			1,583,444			1,503,758			1,349,544
Interest, taxes and other liabilities		24,374			27,630			28,293			27,423			20,494
Federal funds purchased		-			-			-			-			29,500
Securities sold under agreements to repurchase		147,042			153,804			153,824			165,914			180,388
FHLB and other indebtedness		198,932			190,863			215,870			215,877			216,720
Total Liabilities		2,032,805			1,919,655			1,981,431			1,912,972			1,796,646

Preferred stock, net of discount		-			40,525			40,471			40,419			-
Common stock		18,083			17,341			12,051			12,051			11,499
Additional paid-in capital		192,799			183,955			127,992			128,526			108,862
Retained earnings		102,920			116,997			118,021			107,231			124,731
Treasury stock, at cost		(12,768	)		(13,712	)		(14,453	)		(15,368	)		(16,882	)
Accumulated other comprehensive loss		(35,498	)		(61,551	)		(66,372	)		(52,517	)		(57,399	)
Total Stockholders' Equity		265,536			283,555			217,710			220,342			170,811
Total Liabilities and
Stockholders' Equity	$	2,298,341		$	2,203,210		$	2,199,141		$	2,133,314		$	1,967,457

Actual shares outstanding at period end		17,680,328			16,909,592			11,596,249			11,567,449			10,967,597
Book value per common share at period end	$	15.02		$	14.31		$	15.20		$	15.46		$	15.57
Tangible book value per common share
at period end (1)	$	9.92		$	9.02		$	7.49		$	7.71		$	8.99

(1)	Tangible book value per common share is defined as stockholders' equity less goodwill and other intangibles divided by common shares outstanding.

- 7 -

First Community Bancshares, Inc.

Selected Financial Information

	As of and for the Quarter Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
(Unaudited)	2009			2009			2009			2008			2008
Summary of Loan Loss Experience	(Dollars in Thousands)
Allowance for loan losses:
Beginning balance	$	16,678		$	16,555		$	15,978		$	14,510		$	13,433
Balance acquired		-			-			-			1,169			-
Provision for loan losses		3,418			2,552			2,087			2,701			3,461
Charge-offs		(2,990	)		(2,681	)		(1,730	)		(2,606	)		(2,601	)
Recoveries		338			252			220			204			217
Net charge-offs		(2,652	)		(2,429	)		(1,510	)		(2,402	)		(2,384	)
Ending balance	$	17,444		$	16,678		$	16,555		$	15,978		$	14,510

Summary of Asset Quality
Nonaccrual loans	$	12,278		$	11,645		$	10,628		$	12,763		$	6,997
Loans 90 days or more past due and still accruing		-			-			-			-			-
Total non-performing loans		12,278			11,645			10,628			12,763			6,997

Other real estate owned		3,955			3,615			3,114			1,326			896
Total non-performing assets	$	16,233		$	15,260		$	13,742		$	14,089		$	7,893

Asset Quality Ratios
Non-performing loans as a percentage
of loans held for investment		0.88	%		0.92	%		0.83	%		0.98	%		0.60	%
Non-performing assets as a percentage
of total assets		0.71	%		0.69	%		0.62	%		0.66	%		0.40	%
Annualized net charge-offs as a percentage of
average loans held for investment		0.77	%		0.77	%		0.47	%		0.77	%		0.81	%
Allowance for loan losses as a percentage of loans
held for investment		1.25	%		1.31	%		1.30	%		1.23	%		1.24	%
Ratio of allowance for loan losses to
non-performing loans		1.42			1.43			1.56			1.25			2.07

- 8 -

First Community Bancshares, Inc.

Nonaccrual Loan Detail

(Unaudited)	As of September 30, 2009
					Nonaccrual
					Loans to
	Loans		Nonaccrual		Loans
(Dollars in Thousands)	Outstanding		Loans		Outstanding
Commercial
Commercial & industrial	$	90,015	$	454		0.50	%
Agriculture		1,033		185		17.95	%
Total commercial		91,048		639		0.70	%

Commercial real estate
Construction, land development & vacant land		137,750		2,078		1.51	%
Non-owner occupied		176,029		1,934		1.10	%
Owner occupied		164,193		2,296		1.40	%
Farmland		39,159		68		0.17	%
Total commercial real estate		517,131		6,376		1.23	%

Consumer		62,995		157		0.25	%

Residential real estate
Residential		543,689		4,736		0.87	%
Multi-family		73,289		-		0.00	%
Home equity lines		108,466		369		0.34	%
Total residential		725,444		5,105		0.70	%

Total loans	$	1,396,618	$	12,278		0.88	%

Pooled Trust Preferred Securities Detail

September 30, 2009

(Unaudited)									Unrealized
									(Loss)			Current
	Class/		Par		Book		Fair		Recognized			Quarter		Cumulative
Deal Name	Tranche		Value		Value		Value		In OCI			OTTI		OTTI
(In Thousands)

PreTSL X		B1	$	10,028	$	5,697	$	2,967	$	(2,730	)	$	3,110	$	4,331
PreTSL XII		B1		20,114		12,685		8,016		(4,669	)		6,980		7,429
PreTSL XIV		B1		9,000		8,890		4,650		(4,240	)		110		110
PreTSL XVI		C		4,039		1,639		838		(801	)		2,403		2,402
PreTSL XXII		C1		12,624		10,050		2,575		(7,475	)		2,628		2,628
PreTSL XXIII		C1		7,923		7,964		2,811		(5,153	)		-		-
PreTSL XXVI		C1		7,010		6,102		1,194		(4,908	)		908		908
SOLOSO 2007 1A		A3L		18,400		-		-		-			1,244		18,400
Trapeza Ser 13A		D		20,233		7,089		51		(7,038	)		13,144		13,144
			$	109,371	$	60,116	$	23,102	$	(37,014	)	$	30,527	$	49,352

- 9 -

First Community Bancshares, Inc.

Selected Financial Information

	As of and for the Quarter Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
(Unaudited)	2009			2009			2009			2008			2008
	(Dollars in Thousands)
Ratios
Return on average assets		-2.15	%		0.34	%		0.87	%		-2.77	%		0.90	%
Return on average common equity		-18.78	%		3.82	%		10.61	%		-33.28	%		9.39	%
Net interest margin		3.68	%		3.62	%		3.73	%		3.93	%		3.90	%
Efficiency ratio for the quarter		59.40	%		58.62	%		58.25	%		57.97	%		56.62	%
Efficiency ratio year-to-date		58.37	%		58.43	%		58.25	%		57.54	%		57.39	%
Equity as a percent of total assets at end of period		11.55	%		12.87	%		9.90	%		10.33	%		8.68	%
Average earning assets as a percentage of
average total assets		87.14	%		86.78	%		86.68	%		86.38	%		87.89	%
Average loans as a percentage of average deposits		83.25	%		81.19	%		82.83	%		86.01	%		88.25	%

Average Balances
Investments	$	536,485		$	564,934		$	521,776		$	508,289		$	582,605
Loans		1,362,603			1,269,584			1,292,179			1,235,023			1,174,855
Earning assets		1,978,626			1,892,403			1,887,583			1,768,113			1,758,895
Total assets		2,270,592			2,180,779			2,177,762			2,046,879			2,001,191
Deposits		1,636,744			1,563,640			1,560,109			1,435,956			1,331,293
Interest-bearing deposits		1,437,763			1,361,970			1,360,798			1,230,547			1,120,138
Borrowings		347,292			359,628			372,282			400,393			459,475
Interest-bearing liabilities		1,785,055			1,721,597			1,733,080			1,630,940			1,579,613
Equity		260,126			233,093			219,653			189,122			192,743
Tax equivalent net interest income		18,329			17,093			17,349			17,483			17,264

- 10 -

First Community Bancshares, Inc.

Consolidated Average Balance Sheets, Yields, and Rates

	Three Months Ended September 30,
	2009							2008
					Yield/							Yield/
	Average		Interest		Rate			Average		Interest		Rate
(Unaudited)	Balance			(1)		(1)		Balance			(1)		(1)
	(Dollars in Thousands)
Earning assets
Loans held for investment (2)	$	1,362,603	$	21,078		6.14	%	$	1,174,855	$	19,286		6.53	%
Securities available for sale		536,485		6,636		4.91	%		573,046		8,035		5.58	%
Held to maturity securities		7,575		154		8.07	%		9,559		161		6.70	%
Interest-bearing deposits with banks		71,963		55		0.30	%		1,435		9		2.50	%
Total earning assets		1,978,626	$	27,923		5.60	%		1,758,895	$	27,491		6.22	%
Other assets		291,966							242,296
Total	$	2,270,592						$	2,001,191
Interest-bearing liabilities
Interest-bearing demand deposits	$	209,569	$	110		0.21	%	$	178,632	$	73		0.16	%
Savings deposits		339,601		639		0.75	%		309,364		1,172		1.51	%
Time deposits		888,593		6,249		2.79	%		632,142		5,439		3.42	%
Fed funds purchased		-		-		-			42,702		251		2.34	%
Retail repurchase agreements		101,065		333		1.31	%		149,984		730		1.94	%
Wholesale repurchase agreements		50,000		474		3.76	%		50,000		389		3.10	%
FHLB borrowings & other long-term debt		196,227		1,789		3.62	%		216,789		2,173		3.99	%
Total interest-bearing liabilities		1,785,055		9,594		2.13	%		1,579,613		10,227		2.58	%
Noninterest-bearing demand deposits		198,981							211,155
Other liabilities		26,430							17,680
Stockholders' equity		260,126							192,743
Total	$	2,270,592						$	2,001,191
Net interest income			$	18,329						$	17,264
Net interest rate spread (3)						3.47	%						3.64	%
Net interest margin (4)						3.68	%						3.90	%

(1)	Fully taxable equivalent at the rate of 35%.
(2)	Non-accrual loans are included in average balances outstanding but with no related interest income during the period of non-accrual.
(3)	Represents the difference between the yield on earning assets and cost of funds.
(4)	Represents tax equivalent net interest income divided by average earning assets.

- 11 -

First Community Bancshares, Inc.

Consolidated Average Balance Sheets, Yields, and Rates

	Nine Months Ended September 30,
	2009							2008
					Yield/							Yield/
	Average		Interest		Rate			Average		Interest		Rate
(Unaudited)	Balance			(1)		(1)		Balance			(1)		(1)
	(Dollars in Thousands)
Earning assets
Loans held for investment (2)	$	1,308,380	$	60,662		6.20	%	$	1,187,006	$	60,456		6.80	%
Securities available for sale		535,710		21,377		5.34	%		602,802		25,310		5.61	%
Held to maturity securities		7,954		490		8.24	%		10,849		675		8.31	%
Interest-bearing deposits with banks		67,819		133		0.26	%		12,363		260		2.81	%
Total earning assets		1,919,863	$	82,662		5.76	%		1,813,020	$	86,701		6.39	%
Other assets		290,180							232,933
Total	$	2,210,043						$	2,045,953
Interest-bearing liabilities
Interest-bearing demand deposits	$	199,235	$	270		0.18	%	$	171,661	$	213		0.17	%
Savings deposits		323,387		1,835		0.76	%		314,903		3,847		1.63	%
Time deposits		864,503		19,535		3.02	%		648,282		18,483		3.81	%
Fed funds purchased		-		-		-			18,241		330		2.42	%
Retail repurchase agreements		103,000		1,056		1.37	%		151,107		2,540		2.25	%
Wholesale repurchase agreements		50,000		1,449		3.87	%		50,000		1,077		2.88	%
FHLB borrowings & other long-term debt		206,643		5,745		3.72	%		252,520		7,732		4.09	%
Total interest-bearing liabilities		1,746,768		29,890		2.29	%		1,606,714		34,222		2.85	%
Noninterest-bearing demand deposits		199,986							213,934
Other liabilities		25,517							19,326
Stockholders' equity		237,772							205,979
Total	$	2,210,043						$	2,045,953
Net interest income			$	52,772						$	52,479
Net interest rate spread (3)						3.47	%						3.54	%
Net interest margin (4)						3.68	%						3.87	%

(1)	Fully taxable equivalent at the rate of 35%.
(2)	Non-accrual loans are included in average balances outstanding but with no related interest income during the period of non-accrual.
(3)	Represents the difference between the yield on earning assets and cost of funds.
(4)	Represents tax equivalent net interest income divided by average earning assets.

- 12 -