First Community Bancshares, Inc. Announces Second Quarter Earnings

The Company has increased its commercial lending resources, and loans outstanding increased compared to March 31, 2008. The Company is currently seeing a strong pipeline of approved and prospective deals, which points towards further increases in the loan portfolio. Net interest margin also began to recover from 2007 levels increasing to 3.92% from 3.78% in the second quarter of 2007.

The Company reported excellent asset quality measures at June 30, 2008. At the close of the second quarter, nonaccrual loans remained low at $4.13 million, or 0.35%, of total loans. Other real estate owned was $500 thousand. Loan loss provision for the second quarter of 2008 was $937 thousand, and was driven by two specific commercial loan impairments identified late in the second quarter.

On July 1, 2008, the Company's wholly-owned insurance agency subsidiary, GreenPoint Insurance Group, completed the acquisition of REL Insurance, in High Point, North Carolina. REL adds approximately $750 thousand in annual insurance commissions. Richard E. Lee, principal of REL, will assume a key position in operations at GreenPoint as the two are merged. GreenPoint, under the direction of its President, Shawn Cummings, now reports pro forma annual commission revenue of approximately $5.0 million.

Net Interest Income

Tax-equivalent net interest margin for the second quarter increased to 3.92%. Net interest income was down $389 thousand, or 2.29%, from the second quarter of 2007. Interest income was $27.43 million, a decrease of $4.55 million, or 14.22%, from second quarter 2007. The decrease was due primarily to decreases in loan and security yields and a decrease in average loans, a result of stronger underwriting standards. The yield on loans dropped to 6.78% from 7.49% and average loans decreased $72.88 million to $1.18 billion from second quarter 2007.

Second quarter interest expense decreased $4.16 million, or 27.78%, from 2007. Second quarter deposit costs decreased $2.63 million compared to the second quarter of 2007, while the average rate paid on interest-bearing deposits decreased 77 basis points to 2.55%. Throughout 2008, the Company has exercised discipline in pricing, which let to declining CD portfolio totals. Compared to 2007, interest costs on borrowings decreased $1.53 million to $3.69 million, while the average balance decreased $6.06 million. Second quarter cost of interest-bearing liabilities decreased 89 basis points compared to last year. Average interest bearing liabilities decreased $60.32 million, or 3.63%, compared with second quarter 2007. Also during the second quarter, the Company repaid a $50.00 million advance from the FHLB. The advance had a fixed rate of 3.64%, and the Company replaced the funding with lower cost sources.

Noninterest Income

Wealth management revenues increased $93 thousand, or 9.25%, compared with the second quarter of 2007 as trust revenue increased $68 thousand and investment advisory revenue increased $25 thousand. Service charges on deposit accounts increased $801 thousand, or 30.09%. Other service charges and fees increased $227 thousand, or 27.12%. Insurance commissions were $1.15 million for the second quarter of 2008. Insurance commissions are derived from GreenPoint Insurance Group, a September 2007 acquisition. Other operating income decreased 20.73% to $803 thousand.

Noninterest Expenses

Total non-interest expenses for the second quarter of 2008 increased $2.68 million, or 22.23%, from second quarter 2007. Salaries and benefits increased $1.42 million, or 22.95%, from the second quarter of 2007. GreenPoint accounted for approximately $567 thousand of the increase. The Company's new Small Business Lending Division and new branches accounted for $135 thousand and $240 thousand of the increase, respectively. The Company also deferred $357 thousand less in salaries and benefits costs through FAS 91 as a result of lower levels of loan production, and saw increases in health care costs of $258 thousand (exclusive of GreenPoint). Occupancy and furniture and equipment expenses increased due to the new branches that were opened throughout 2007 and the addition of operating expenses at GreenPoint. Other non-interest expenses increased $787 thousand, or 19.65%, compared to the second quarter of 2007 and included $225 thousand of expenses at GreenPoint, $244 thousand of increased account promotion and marketing expenses, $189 thousand in increased consulting fee expenses, and $278 thousand in increased legal expenses. Increased legal expenses include $171 thousand associated with one-time costs incurred in abandoned deal charges. The second quarter efficiency ratio was 57.55% compared to 50.25% in 2007.

Asset Quality

Credit quality remains quite good. Total loan delinquencies as a percent of total loans were 0.91% compared with 0.65% at March 31, 2008, and 0.98% at December 31, 2007. The ratio of allowance for loan losses as a percent of loans held for investment increased to 1.14% compared with 1.09% at March 31, 2008, and 1.05% at December 31, 2007. Non-performing assets increased to $4.63 million compared with $3.54 million at March 31, 2008, and $3.47 million at December 31, 2007. Non-performing loans as a percentage of loans held for investment were 0.35% compared with 0.27% at March 31, 2008, and 0.24% at December 31, 2007.

The annualized net charge-off rate as a percent to average total loans remained at a low 14 basis points for the second quarter of 2008. Net charge-offs in the second quarter of 2008 were $366 thousand, down from $576 thousand in the second quarter of 2007. The Company made a provision for loan losses of $937 thousand in the second quarter of 2008 compared with no provision in the second quarter of 2007.

Balance Sheet

Since year-end 2007, consolidated assets have decreased $96.15 million to $2.05 billion. Included in that decrease is the prepayment of a $25.00 million FHLB advance, a decrease of $44.40 million in the loan portfolio, and a net decrease of $67.25 million in the investment portfolio. Total stockholders' equity for the Company was $196.61 million, resulting in a book value per common share outstanding of $17.95 compared to $217.10 million and $19.61 per common share at December 31, 2007. The decrease in total equity principally reflects the increase in accumulated other comprehensive loss as a result of lower valuations on the Company's securities portfolio and interest rate swap.

The second quarter cash dividend to shareholders was $0.28 per share. 2008 is expected to be the 17th consecutive year of dividend increases to shareholders. During the second quarter of 2008, the Company repurchased 60,800 shares at an average cost of approximately $31.95 per share.

The Company will host an investor and media teleconference and webcast on Thursday, July 24, 2008, at 11:00 a.m. To access the teleconference, the toll-free number to call 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 second quarter 2008 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 $2.05 billion financial holding company and is the parent company of First Community Bank, N. A. First Community Bank, N. A. operates through fifty-eight locations and four wealth management offices 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 group managed assets with a market value of $831 million at June 30, 2008. 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.

First Community Bancshares, Inc. Three Months Ended Consolidated Statements of Income June 30, ------------------------- (In Thousands, Except Share and Per Share Data)(Unaudited) 2008 2007 ------------ ------------ Interest Interest and fees on loans held for investment $ 19,891 $ 23,404 Income Interest on securities-taxable 5,467 6,030 Interest on securities- nontaxable 2,004 2,150 Interest on federal funds sold and deposits 71 395 -------------------------------------------------------- ------------- Total interest income 27,433 31,979 -------------------------------------------------------- ------------- Interest Interest on deposits 7,118 9,748 Expense Interest on borrowings 3,690 5,217 -------------------------------------------------------- ------------- Total interest expense 10,808 14,965 -------------------------------------------------------- ------------- Net interest income 16,625 17,014 Provision for loan losses 937 - -------------------------------------------------------- ------------- Net interest income after provision for loan losses 15,688 17,014 -------------------------------------------------------- ------------- Non-Interest Wealth management income 1,098 1,005 Income Service charges on deposit accounts 3,463 2,662 Other service charges and fees 1,064 837 Insurance commissions 1,146 - Gain on sale of securities 150 30 Other operating income 803 1,013 -------------------------------------------------------- ------------- Total non-interest income 7,724 5,547 -------------------------------------------------------- ------------- Non-Interest Salaries and employee benefits 7,580 6,165 Expense Occupancy expense of bank premises 1,256 1,020 Furniture and equipment expense 973 780 Amortization of intangible assets 158 105 Prepayment penalty - - Other operating expense 4,792 4,005 -------------------------------------------------------- ------------- Total non-interest expense 14,759 12,075 -------------------------------------------------------- ------------- Income before income taxes 8,653 10,486 Income tax expense 2,415 3,047 -------------------------------------------------------- ------------- Net income $ 6,238 $ 7,439 -------------------------------------------------------- ------------- Basic earnings per common share (EPS) $ 0.57 $ 0.66 Diluted earnings per common share (DEPS) $ 0.56 $ 0.66 Weighted Average Shares Outstanding: Basic 10,992,301 11,260,868 Diluted 11,073,440 11,320,227 For the period: Return on average assets 1.23% 1.40% Return on average equity 12.08% 13.56% Return on average tangible equity 18.75% 19.12% Cash dividends per share $ 0.28 $ 0.27 At period end: Book value per share Market value First Community Bancshares, Inc. Six Months Ended Consolidated Statements of Income June 30, -------------------------- (In Thousands, Except Share and Per Share Data)(Unaudited) 2008 2007 ------------- ------------ Interest Interest and fees on loans held for investment $ 41,128 $ 46,923 Income Interest on securities-taxable 11,534 11,011 Interest on securities- nontaxable 4,067 4,062 Interest on federal funds sold and deposits 251 669 --------------------------------------------------------- ------------ Total interest income 56,980 62,665 --------------------------------------------------------- ------------ Interest Interest on deposits 15,859 19,048 Expense Interest on borrowings 8,136 9,588 --------------------------------------------------------- ------------ Total interest expense 23,995 28,636 --------------------------------------------------------- ------------ Net interest income 32,985 34,029 Provision for loan losses 1,260 - --------------------------------------------------------- ------------ Net interest income after provision for loan losses 31,725 34,029 --------------------------------------------------------- ------------ Non-Interest Wealth management income 1,997 2,023 Income Service charges on deposit accounts 6,562 5,071 Other service charges and fees 2,185 1,707 Insurance commissions 2,490 - Gain on sale of securities 1,970 159 Other operating income 1,661 1,802 --------------------------------------------------------- ------------ Total non-interest income 16,865 10,762 --------------------------------------------------------- ------------ Non-Interest Salaries and employee benefits 15,370 12,576 Expense Occupancy expense of bank premises 2,420 2,077 Furniture and equipment expense 1,874 1,603 Amortization of intangible assets 318 208 Prepayment penalty 1,647 - Other operating expense 9,413 7,769 --------------------------------------------------------- ------------ Total non-interest expense 31,042 24,233 --------------------------------------------------------- ------------ Income before income taxes 17,548 20,558 Income tax expense 4,998 5,995 --------------------------------------------------------- ------------ Net income $ 12,550 $ 14,563 --------------------------------------------------------- ------------ Basic earnings per common share (EPS) $ 1.14 $ 1.29 Diluted earnings per common share (DEPS) $ 1.13 $ 1.28 Weighted Average Shares Outstanding: Basic 11,011,116 11,260,126 Diluted 11,091,714 11,334,486 For the period: Return on average assets 1.22% 1.41% Return on average equity 11.87% 13.45% Return on average tangible equity 18.12% 19.02% Cash dividends per share $ 0.56 $ 0.54 At period end: Book value per share $ 17.95 $ 19.25 Market value $ 28.20 $ 31.19

First Community Bancshares, Inc. Quarterly Performance Summary As of and for the Quarter Ended -------------------------------------- Income Statements June 30, March 31, December 31, (In Thousands, Except Share and Per Share Data)(Unaudited) 2008 2008 2007 ----------- ----------- ------------ Interest Interest and fees on loans held for investment $ 19,891 $ 21,237 $ 23,100 Income Interest on securities- taxable 5,467 6,067 6,942 Interest on securities- nontaxable 2,004 2,063 2,050 Interest on federal funds sold and deposits 71 180 102 ----------- ----------- ------------ Total interest income 27,433 29,547 32,194 ----------- ----------- ------------ Interest Interest on deposits 7,118 8,741 9,626 Expense Interest on borrowings 3,690 4,446 5,425 ----------- ----------- ------------ Total interest expense 10,808 13,187 15,051 ----------- ----------- ------------ Net interest income 16,625 16,360 17,143 Provision for loan losses 937 323 717 ----------- ----------- ------------ Net interest income after provision for loan losses 15,688 16,037 16,426 ----------- ----------- ------------ Non-Int Wealth management income 1,098 899 949 Income Service charges on deposit accounts 3,463 3,099 3,310 Other service charges, commissions and fees 1,064 1,121 991 Insurance commissions 1,146 1,344 1,142 Gain on sale of securities 150 1,820 202 Other operating income 803 858 1,455 ----------- ----------- ------------ Total non- interest income 7,724 9,141 8,049 ----------- ----------- ------------ Non-Int Salaries and employee benefits 7,580 7,790 6,728 Expense Occupancy expense of bank premises 1,256 1,164 1,170 Furniture and equipment expense 973 901 923 Amortization of intangible assets 158 160 154 Prepayment penalty - 1,647 - Other operating expense 4,792 4,621 4,419 ----------- ----------- ------------ Total non- interest expense 14,759 16,283 13,394 ----------- ----------- ------------ Income before income taxes 8,653 8,895 11,081 Income tax expense 2,415 2,583 3,328 ----------- ----------- ------------ Net income $ 6,238 $ 6,312 $ 7,753 =========== =========== ============ Per Basic EPS $ 0.57 $ 0.57 $ 0.70 Share Diluted EPS $ 0.56 $ 0.57 $ 0.69 Cash dividends per share $ 0.28 $ 0.28 $ 0.27 Weighted Average Shares Outstanding: Basic 10,992,301 11,029,931 11,120,938 Diluted 11,073,440 11,107,610 11,205,292 Actual shares outstanding at period end 10,954,078 11,012,574 11,069,646 Book Value per share at period end $ 17.95 $ 18.98 $ 19.61 Market Value per share at period end $ 28.20 $ 36.42 $ 31.89 First Community Bancshares, Inc. Quarterly Performance Summary As of and for the Quarter Ended ------------------------------- Income Statements September 30, June 30, (In Thousands, Except Share and Per Share Data)(Unaudited) 2007 2007 --------------- --------------- Interest Interest and fees on loans held for investment $ 23,478 $ 23,404 Income Interest on securities- taxable 6,772 6,030 Interest on securities- nontaxable 2,078 2,150 Interest on federal funds sold and deposits 404 395 --------------- --------------- Total interest income 32,732 31,979 --------------- --------------- Interest Interest on deposits 10,083 9,748 Expense Interest on borrowings 5,506 5,217 --------------- --------------- Total interest expense 15,589 14,965 --------------- --------------- Net interest income 17,143 17,014 Provision for loan losses - - --------------- --------------- Net interest income after provision for loan losses 17,143 17,014 --------------- --------------- Non-Int Wealth management income 908 1,005 Income Service charges on deposit accounts 3,006 2,662 Other service charges, commissions and fees 902 837 Insurance commissions - - Gain on sale of securities 50 30 Other operating income 1,154 1,013 --------------- --------------- Total non- interest income 6,020 5,547 --------------- --------------- Non-Int Salaries and employee benefits 6,544 6,165 Expense Occupancy expense of bank premises 933 1,020 Furniture and equipment expense 844 780 Amortization of intangible assets 105 105 Prepayment penalty - - Other operating expense 4,410 4,005 --------------- --------------- Total non- interest expense 12,836 12,075 --------------- --------------- Income before income taxes 10,327 10,486 Income tax expense 3,011 3,047 --------------- --------------- Net income $ 7,316 $ 7,439 =============== =============== Per Basic EPS $ 0.65 $ 0.66 Share Diluted EPS $ 0.65 $ 0.66 Cash dividends per share $ 0.27 $ 0.27 Weighted Average Shares Outstanding: Basic 11,179,322 11,260,868 Diluted 11,230,220 11,320,227 Actual shares outstanding at period end 11,175,550 11,232,466 Book Value per share at period end $ 19.43 $ 19.25 Market Value per share at period end $ 36.23 $ 31.19

First Community Bancshares, Inc. Quarterly Balance Sheets (Unaudited) June 30, March 31, December 31, 2008 2008 2007 ----------- ----------- ------------ (In Thousands) Cash and due from banks $ 44,672 $ 44,004 $ 50,051 Interest-bearing deposits with banks 10,745 33,111 2,695 Securities available for sale 598,438 598,853 664,120 Securities held to maturity 10,511 12,075 12,075 Loans held for sale 1,522 2,116 811 Loans held for investment, net of unearned income 1,181,107 1,179,504 1,225,502 Less allowance for loan losses 13,433 12,862 12,833 ----------- ----------- ------------ Net loans 1,167,674 1,166,642 1,212,669 Premises and equipment 50,075 49,444 48,383 Other real estate owned 500 400 545 Interest receivable 9,992 9,742 12,465 Intangible assets 71,181 71,239 70,056 Other assets 88,377 77,487 75,968 ----------- ----------- ------------ Total Assets $2,053,687 $2,065,113 $ 2,149,838 ----------- ----------- ------------ Deposits: Demand $ 224,716 $ 224,097 $ 224,087 Interest-bearing demand 172,623 172,864 153,570 Savings 312,148 305,725 327,691 Time 629,920 656,267 688,095 ----------- ----------- ------------ Total Deposits 1,339,407 1,358,953 1,393,443 Interest, taxes and other liabilities 18,695 22,293 21,454 Federal funds purchased 66,500 - 18,500 Securities sold under agreements to repurchase 215,610 208,000 207,427 FHLB and other indebtedness 216,862 266,889 291,916 ----------- ----------- ------------ Total Liabilities 1,857,074 1,856,135 1,932,740 ----------- ----------- ------------ Common stock, $1 par value 11,499 11,499 11,499 Additional paid-in capital 108,926 108,896 108,825 Retained earnings 123,253 120,087 117,670 Treasury stock, at cost (17,328) (15,457) (13,613) Accumulated other comprehensive loss (29,737) (16,047) (7,283) ----------- ----------- ------------ Total Stockholders' Equity 196,613 208,978 217,098 ----------- ----------- ------------ Total Liabilities and Stockholders' Equity $2,053,687 $2,065,113 $ 2,149,838 ----------- ----------- ------------ First Community Bancshares, Inc. Quarterly Balance Sheets (Unaudited) September 30, June 30, 2007 2007 ------------- ----------- (In Thousands) Cash and due from banks $ 39,877 $ 40,879 Interest-bearing deposits with banks 19,427 33,380 Securities available for sale 671,360 658,901 Securities held to maturity 12,548 13,177 Loans held for sale 2,294 1,818 Loans held for investment, net of unearned income 1,239,207 1,243,076 Less allowance for loan losses 13,190 13,934 ------------- ----------- Net loans 1,226,017 1,229,142 Premises and equipment 46,702 42,274 Other real estate owned 211 593 Interest receivable 13,289 12,892 Intangible assets 69,104 62,017 Other assets 73,817 73,522 ------------- ----------- Total Assets $ 2,174,646 $2,168,595 ------------- ----------- Deposits: Demand $ 224,297 $ 241,423 Interest-bearing demand 143,719 143,080 Savings 348,457 333,855 Time 686,564 703,602 ------------- ----------- Total Deposits 1,403,037 1,421,960 Interest, taxes and other liabilities 20,120 21,000 Federal funds purchased 15,600 - Securities sold under agreements to repurchase 226,784 217,987 FHLB and other indebtedness 291,942 291,387 ------------- ----------- Total Liabilities 1,957,483 1,952,334 ------------- ----------- Common stock, $1 par value 11,499 11,499 Additional paid-in capital 108,794 108,633 Retained earnings 112,911 108,601 Treasury stock, at cost (10,051) (8,341) Accumulated other comprehensive loss (5,990) (4,131) ------------- ----------- Total Stockholders' Equity 217,163 216,261 ------------- ----------- Total Liabilities and Stockholders' Equity $ 2,174,646 $2,168,595 ------------- -----------

First Community Bancshares, Inc. Selected Financial Information (Unaudited) As of and for the Quarter Ended ---------------------------------------------------------- December September June 30, March 31, 31, 30, June 30, 2008 2008 2007 2007 2007 ----------- ----------- ----------- ----------- ---------- (Dollars in Thousands) Ratios Return on average assets 1.23% 1.21% 1.43% 1.34% 1.40% Return on average equity 12.08% 11.66% 13.95% 13.31% 13.56% Return on average tangible equity 18.75% 17.53% 20.67% 18.86% 19.12% Net interest margin 3.92% 3.78% 3.75% 3.70% 3.78% Efficiency ratio for the quarter (a) 57.55% 58.00% 51.22% 52.14% 50.25% Efficiency ratio year- to-date (a) 57.78% 58.00% 51.20% 51.18% 50.69% Equity as a percent of total assets at end of period 9.57% 10.12% 10.10% 9.99% 9.97% Average earning assets as a percentage of average total assets 88.83% 89.10% 89.61% 90.23% 90.47% Average loans as a percentage of average deposits 88.10% 87.68% 88.49% 87.91% 88.82% Average Balances Investments $ 623,338 $ 635,350 $ 684,227 $ 678,790 $ 645,266 Loans 1,180,813 1,205,481 1,238,620 1,246,530 1,253,679 Earning assets 1,817,322 1,863,433 1,932,481 1,958,858 1,931,247 Total assets 2,045,773 2,091,397 2,156,484 2,171,036 2,134,612 Deposits 1,340,384 1,374,853 1,399,690 1,417,922 1,411,476 Interest- bearing deposits 1,122,680 1,161,881 1,178,833 1,188,470 1,176,940 Borrowings 478,361 477,903 516,635 515,775 484,410 Interest- bearing liabilities 1,601,041 1,639,784 1,695,468 1,704,245 1,661,350 Equity 207,660 217,679 220,520 218,049 219,989 Tax equivalent net interest income 17,726 17,491 18,265 18,281 18,186

(a) Excludes securities gains/losses, intangible amortization, foreclosed property expenses, non-recurring income and expense items, and includes tax equivalency adjustment.

First Community Bancshares, Inc. Selected Financial Information (Unaudited) As of and for the Quarter Ended --------------------------------------------- March December September June 30, 31, 31, 30, June 30, 2008 2008 2007 2007 2007 -------- -------- -------- --------- -------- (Dollars in Thousands) Summary of Loan Loss Experience Allowance for Loan Losses: Beginning balance $12,862 $12,833 $13,190 $13,934 $14,510 Provision for Loan Losses 937 323 717 - - Charge-offs (1,198) (966) (1,482) (1,009) (911) Recoveries 832 672 408 265 335 -------- -------- -------- --------- -------- Net charge-offs (366) (294) (1,074) (744) (576) -------- -------- -------- --------- -------- Ending balance $13,433 $12,862 $12,833 $13,190 $13,934 ======== ======== ======== ========= ======== Summary of Asset Quality Nonaccrual loans $ 4,126 $ 3,137 $ 2,923 $ 2,869 $ 2,910 Loans 90 days or more past due and still accruing - - - - - -------- -------- -------- --------- -------- Total non-performing loans 4,126 3,137 2,923 2,869 2,910 Other real estate owned 500 400 545 211 593 -------- -------- -------- --------- -------- Total non-performing assets $ 4,626 $ 3,537 $ 3,468 $ 3,080 $ 3,503 ======== ======== ======== ========= ======== Restructured loans $ 231 $ 239 $ 245 $ 253 $ 256 Asset Quality Ratios Non-performing loans as a percentage of loans held for investment 0.35% 0.27% 0.24% 0.23% 0.23% Non-performing assets as a percentage of: Total assets 0.23% 0.17% 0.16% 0.14% 0.16% Loans held for investment plus other real estate owned 0.39% 0.30% 0.28% 0.25% 0.28% Annualized net charge- offs as a percentage of average loans held for investment 0.12% 0.10% 0.34% 0.24% 0.18% Allowance for loan losses as a percentage of loans held for investment 1.14% 1.09% 1.05% 1.06% 1.12% Ratio of allowance for loan losses to nonaccrual loans 3.26 4.10 4.39 4.60 4.79

First Community Bancshares, Inc. Consolidated Average Balance Sheets, Yields, and Rates (Unaudited) Three Months Ended June 30, ----------------------------------------------------- 2008 2007 -------------------------- -------------------------- Yield/ Yield/ Average Interest Rate Average Interest Rate Balance (1) (1) Balance (1) (1) ---------- -------- ------ ---------- -------- ------ Earning Assets (Dollars in Thousands) Loans Held for Investment (2) $1,180,813 $19,912 6.78% $1,253,679 $23,417 7.49% Securities Available for Sale 612,411 8,278 5.44% 629,030 9,017 5.75% Held to Maturity Securities 10,927 273 10.05% 16,236 322 7.95% Interest-bearing Deposits with Banks 13,171 71 2.17% 32,302 395 4.90% ---------- -------- ------ ---------- -------- ------ Total Earning Assets 1,817,322 $28,534 6.31% 1,931,247 $33,151 6.89% Other Assets 228,451 203,365 ---------- ---------- Total $2,045,773 $2,134,612 ========== ========== Interest-bearing Liabilities Interest-bearing Demand Deposits $ 174,100 $ 65 0.15% $ 147,570 $ 118 0.32% Savings Deposits 308,344 1,188 1.55% 324,759 1,776 2.19% Time Deposits 640,236 5,865 3.68% 704,611 7,854 4.47% Fed Funds Purchased & Repurchase Agreements 213,700 1,063 2.00% 228,856 2,206 3.87% FHLB Borrowings & Other Long- term Debt 264,661 2,627 3.99% 255,554 3,011 4.73% ---------- -------- ------ ---------- -------- ------ Total Interest- bearing Liabilities 1,601,041 10,808 2.72% 1,661,350 14,965 3.61% Noninterest- bearing Demand Deposits 217,704 234,536 Other Liabilities 19,368 18,737 Stockholders' Equity 207,660 219,989 ---------- ---------- Total $2,045,773 $2,134,612 ========== -------- ========== -------- Net Interest Income $17,726 $18,186 ======== ======== Net Interest Rate Spread (3) 3.59% 3.28% ====== ====== Net Interest Margin (4) 3.92% 3.78% ====== ======

(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.

First Community Bancshares, Inc. Consolidated Average Balance Sheets, Yields, and Rates (Unaudited) Six Months Ended June 30, ------------------------------------------------------- 2008 2007 ---------------------------- -------------------------- Yield/ Yield/ Average Interest Rate Average Interest Rate Balance (1) (1) Balance (1) (1) ------------ -------- ------ ---------- -------- ------ Earning Assets (Dollars in Thousands) Loans Held for Investment (2) $1,193,147 $41,169 6.94% $1,259,620 $46,948 7.52% Securities Available for Sale 617,843 17,276 5.62% 581,091 16,552 5.74% Held to Maturity Securities 11,501 515 9.00% 17,991 711 7.97% Interest- bearing Deposits with Banks 17,887 251 2.82% 27,788 669 4.85% ------------ -------- ------ ---------- -------- ------ Total Earning Assets 1,840,378 $59,211 6.47% 1,886,490 $64,880 6.94% Other Assets 228,202 199,588 ------------ ---------- Total $2,068,580 $2,086,078 ============ ========== Interest- bearing Liabilities Interest- bearing Demand Deposits $ 168,138 $ 140 0.17% $ 146,770 $ 229 0.31% Savings Deposits 317,702 2,675 1.69% 322,223 3,449 2.16% Time Deposits 656,440 13,044 4.00% 700,884 15,370 4.42% Fed Funds Purchased & Repurchase Agreements 207,550 2,575 2.49% 221,695 4,241 3.86% FHLB Borrowings & Other Long- term Debt 270,583 5,561 4.13% 225,082 5,347 4.79% ------------ -------- ------ ---------- -------- ------ Total Interest- bearing Liabilities 1,620,413 23,995 2.98% 1,616,654 28,636 3.57% Noninterest- bearing Demand Deposits 215,338 232,069 Other Liabilities 20,159 18,949 Stockholders' Equity 212,670 218,406 ------------ ---------- Total $2,068,580 $2,086,078 ============ -------- ========== -------- Net Interest Income $35,216 $36,244 ======== ======== Net Interest Rate Spread (3) 3.49% 3.37% ====== ====== Net Interest Margin (4) 3.85% 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.

SOURCE: First Community Bancshares, Inc.

First Community Bancshares, Inc. David D. Brown, 276-326-9000