First Community Bankshares (FCBC) 8-K First Community Bancshares, Inc. Announces First Quarter Earnings

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE:	FOR MORE INFORMATION,
April 25, 2006	CONTACT:     Mark A. Wendel
	(276) 326-9000

First Community Bancshares, Inc. Announces First Quarter Earnings

Bluefield, Virginia – First Community Bancshares, Inc. (NASDAQ: FCBC) (www.fcbinc.com) today reported earnings of $6.8 million for the first quarter of 2006, or $0.61 diluted earnings per share. This represents a 15% increase over first quarter 2005 earnings of $6.0 million, or $0.53 diluted earnings per share. Return on average assets for the first quarter of 2006 was 1.42%, compared to 1.30% for the first quarter of 2005. Return on average equity for the first quarter of 2006 was 14.09%, compared to 13.00% for the same period in 2005.

Chief Executive Officer John M. Mendez commented, “We are pleased with the financial results for the period ended March 31, 2006. We are even more excited to announce that, during the quarter, we acquired two branch sites in the Winston-Salem, North Carolina, area in the Oliver’s Crossing shopping center and in the River Ridge Station shopping center in Clemmons. We are also under contract for a branch site in Mechanicsville, Virginia, which will augment the existing Richmond branch network, and provide growth opportunity in Hanover County. Recently we’ve discussed our strategic intention to add to our presence in these higher growth markets in conjunction with ongoing evaluation of our existing branch network. This marks the first phase in executing that plan, and the Company anticipates that the new branches will be operational before year-end 2006.”

“Additionally, as we redirect Company resources, we have also engaged Addison Whitney, a full service brand development and identity consulting firm based in Charlotte, to assist us with tactical positioning as we compete for customers in both our new and legacy markets. By early summer, we should have research results and specific recommendations to consider as we evaluate both our brand and market positions.”

Also, as a result of the ongoing branch evaluation, the Company announced that it has entered definitive agreements to sell its branch locations in Drake’s Branch, Virginia, and Rowlesburg, West Virginia. At March 31, 2006, the two offices held approximately $27.8 million in deposits and repurchase agreements and $4.9 million in loans. The transactions are expected to result in gains totaling approximately $1.1 million, and to be completed during the second and third quarters of 2006.

Financial Highlights

• The total loan portfolio remained relatively unchanged compared to December 31, 2005, at $1.3 billion. Total loan production was $169 million, however the commercial portfolio experienced large payoffs during the current quarter. Average loans increased $8.2 million, or a 2.5% annualized growth rate, compared to fourth quarter 2005 and $74.6 million, or 5.9%, compared to first quarter 2005.

• Net interest income was $18.1 million, an improvement of $312 thousand, or 1.8%, compared to the first quarter of 2005. The increase was due primarily to the increase of $74.6 million in the average balance of loans held for investment, part of an $83.2 million increase in average earning assets.

• Tax-equivalent net interest margin was 4.32%, up from 4.27% for the fourth quarter of 2005. The margin performance reflects the Company’s slightly asset-sensitive balance sheet combined with the effects of the $77 million FHLB advance restructuring near year-end 2005.

• Non-interest income was $5.1 million. Excluding a gain of $676 thousand from a lawsuit settlement, non-interest income was $4.5 million compared to $3.7 million in the first quarter of 2005, a 20% increase. The increase reflects

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	continued improvement in the areas of service charges on deposit accounts and other service charges, commissions, and fees. Service charges on deposit accounts increased $269 thousand, or 13%, and other service charges, commissions and fees increased $81 thousand, or 12%. Stone Capital Management revenues, which are included in Wealth Management income, grew by $25 thousand, or 16%, compared to the first quarter of 2005.
•	Average deposits grew $35 million, or 2.5%, compared to the first quarter of 2005. Average noninterest-bearing deposits grew $12 million, or 5.4%, during this time. Excluding the deposits sold in the fourth quarter of 2005, average deposits increased 5.9% and average noninterest-bearing deposits increased 7.1%.
•	Non-interest expense was $13.3 million, compared to $12.5 million in the first quarter of 2005. Most of the 6.7% increase can be attributed to increases in salaries and benefits, including the Company’s 401(k) and ESOP matching contributions on increased first quarter incentive payouts related to 2005 performance. The Company also incurred $71 thousand of expenses as a result of the adoption of FAS 123R “Share-Based Payment,” which had not been recorded in prior periods. Additionally, the Company had expenses related to the branding and identity consulting engagement of approximately $100 thousand that will not continue beyond the second quarter.
•	Credit quality remains strong with accounts over thirty days delinquent as a percent of total loans at 0.50% at March 31, 2006, compared with 0.79% at December 31, 2005, and 0.76% at March 31, 2005. The ratio of allowance for loan losses as a percent of loans held for investment was 1.11%, compared to 1.11% and 1.29% for the same respective periods. The provision for loan losses of $408 thousand was less than recent quarters due to much lower net charge-offs and a downward trend in non-performing assets and loss history. Annualized net charge-offs and non-performing assets as a percentage of assets were at record lows of 0.10% and 0.17%, respectively.
•	During the first quarter, the board of directors declared a dividend to stockholders of twenty-six cents ($0.26). The dividend represents an increase of 2.0% over the $0.255 per share paid in the first quarter of 2005. 2006 is projected to be the 15th consecutive year of dividend increases to stockholders. The first quarter 2006 dividend yield was 3.3%, based on quarter-end market value.

The Company will host an investor and media teleconference and webcast on Wednesday, April 26, 2006 at 11:00 a.m. To access the teleconference, the toll-free number to call is (877) 407-8031. Alternatively, individuals may listen to the live or archived webcast of the conference call. To listen to the webcast, visitwww.fcbinc.com and follow the link under theCurrent News Releases section. The Company’s press release and financial summary will be available in this section, as well. Copies of the Company’s first quarter 2006 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 Dave Brown at (800) 425-0839.

First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a $1.99 billion bank holding company and is the parent company of First Community Bank, N. A. First Community Bank, N. A. operates through sixty banking locations and six wealth management offices in the four states of Virginia, West Virginia, North Carolina and Tennessee. First Community Bank, N. A. is also the parent of Stone Capital Management, Inc., a SEC registered investment advisory firm, which offers wealth management and investment advice. The Company also offers wealth management services through its Trust & Financial Services Division, which as of March 31, 2006, managed assets with a market value of $488 million. First Community Bancshares, Inc.’s common stock is traded on the NASDAQ National Market under the symbol “FCBC”. Additional investor information can be found on the Internet atwww.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.

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First Community Bancshares, Inc.
Consolidated Statements of Income
(Dollars in Thousands, Except Share and Per Share Data)(Unaudited)

		Three Months Ended
		March 31,
		2006			2005
Interest Income	Interest and fees on loans held for investment	$	23,925		$	20,728
	Interest on securities-taxable		2,877			2,296
	Interest on securities-nontaxable		1,826			1,949
	Interest on federal funds sold and deposits		295			215
	Total interest income		28,923			25,188
Interest Expense	Interest on deposits		7,647			4,962
	Interest on borrowings		3,211			2,473
	Total interest expense		10,858			7,435
	Net interest income		18,065			17,753
	Provision for loan losses		408			691
	Net interest income after provision for loan losses		17,657			17,062
Non-Interest Income	Wealth management income		683			689
	Service charges on deposit accounts		2,417			2,148
	Other service charges, commissions and fees		740			659
	Gain on sale of securities		160			22
	Other operating income		1,148			204
	Total non-interest income		5,148			3,722
Non-Interest Expense	Salaries and employee benefits		7,901			7,318
	Occupancy expense of bank premises		1,040			943
	Furniture and equipment expense		850			784
	Amortization of intangible assets		90			110
	Other operating expense		3,452			3,341
	Total non-interest expense		13,333			12,496
	Income from continuing operations before income taxes		9,472			8,288
	Income tax expense continuing operations		2,628			2,237
	Income from continuing operations		6,844			6,051
	Loss from discontinued operations before tax		—			(131	)
	Income tax benefit from discontinued operations		—			(51	)
	Loss from discontinued operations		—			(80	)
	Net income	$	6,844		$	5,971
	Basic earnings per common share (EPS)	$	0.61		$	0.53
	Diluted earnings per common share (DEPS)	$	0.61		$	0.53
	Weighted Average Shares Outstanding:
	Basic		11,233,005			11,259,494
	Diluted		11,311,743			11,339,136
	For the period:
	Return on average assets		1.42	%		1.30	%
	Return on average equity		14.09	%		13.00	%
	Return on average tangible equity		20.42	%		19.57	%
	Cash dividends per share	$	0.26		$	0.255
	At period end:
	Book value per share	$	17.49		$	16.35
	Market value	$	31.98		$	28.07

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First Community Bancshares, Inc.
Quarterly Performance Summary
Income Statements
(Dollars in Thousands Except Share and Per Share Data)(Unaudited)

		As of and for the Quarter Ended
		March 31,		December 31,			September 30,			June 30,			March 31,
		2006		2005			2005			2005			2005
Interest Income	Interest and fees on loans held for investment	$	23,925	$	23,720		$	23,263		$	22,192		$	20,728
	Interest on securities-taxable		2,877		3,322			2,904			2,555			2,296
	Interest on securities-nontaxable		1,826		1,854			1,783			1,865			1,949
	Interest on federal funds sold and deposits		295		341			343			178			215
	Total interest income		28,923		29,237			28,293			26,790			25,188
Interest Expense	Interest on deposits		7,647		7,225			6,296			5,547			4,962
	Interest on borrowings		3,211		3,380			3,276			2,721			2,473
	Total interest expense		10,858		10,605			9,572			8,268			7,435
	Net interest income		18,065		18,632			18,721			18,522			17,753
	Provision for loan losses		408		882			1,060			1,073			691
	Net interest income after provision for loan losses		17,657		17,750			17,661			17,449			17,062
Non-Int Income	Wealth management income		683		716			757			793			689
	Service charges on deposit accounts		2,417		2,664			2,660			2,623			2,148
	Other service charges, commissions and fees		740		723			733			671			659
	Gain on sale of securities		160		74			536			121			22
	Other operating income		1,148		4,804			346			362			204
	Total non-interest income		5,148		8,981			5,032			4,570			3,722
Non-Int Expense	Salaries and employee benefits		7,901		7,450			7,260			7,452			7,318
	Occupancy expense of bank premises		1,040		992			1,000			968			943
	Furniture and equipment expense		850		1,154			855			813			784
	Amortization of intangible assets		90		102			112			111			110
	Prepayment penalties on FHLB advances		—		3,794			—			—			—
	Other operating expense		3,452		3,184			3,891			3,957			3,341
	Total non-interest expense		13,333		16,676			13,118			13,301			12,496
	Income before income taxes-continuing operations		9,472		10,055			9,575			8,718			8,288
	Income tax expense-continuing operations		2,628		2,819			2,641			2,494			2,237
	Income from continuing operations		6,844		7,236			6,934			6,224			6,051
	Loss before tax-discontinued operations		0		(27	)		(36	)		(39	)		(131	)
	Income tax benefit -discontinued operations		0		(11	)		(14	)		(15	)		(51	)
	Loss from discontinued operations		0		(16	)		(22	)		(24	)		(80	)
	Net income	$	6,844	$	7,220		$	6,912		$	6,200		$	5,971
Per Share Data	Basic EPS	$	0.61	$	0.64		$	0.61		$	0.55		$	0.53
	Diluted EPS	$	0.61	$	0.64		$	0.61		$	0.55		$	0.53
	Basic EPS from continuing operations	$	0.61	$	0.64		$	0.61		$	0.55		$	0.54
	Diluted EPS from continuing operations	$	0.61	$	0.64		$	0.61		$	0.55		$	0.53
	Cash dividends per share	$	0.26	$	0.255		$	0.255		$	0.255		$	0.255
	Weighted Average Shares Outstanding:
	Basic		11,233,005		11,268,496			11,275,156			11,273,724			11,259,494
	Diluted		11,311,743		11,340,526			11,342,912			11,344,480			11,339,136
	Actual shares oustanding at period end		11,214,584		11,251,803			11,273,248			11,274,391			11,271,835
	Book Value per share at period end	$	17.49	$	17.29		$	17.15		$	16.83		$	16.35
	Market Value per share at period end	$	31.98	$	31.16		$	29.34		$	32.50		$	28.07

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First Community Bancshares, Inc.
Quarterly Balance Sheets
(Unaudited)

	March 31,			December 31,			September 30,			June 30,			March 31,
	2006			2005			2005			2005			2005
	(Dollars in thousands)
Cash and due from banks	$	46,953		$	46,872		$	48,122		$	43,415		$	34,328
Interest-bearing deposits with banks		59,005			10,667			47,822			64,488			48,942
Securities available for sale		396,691			404,381			410,057			366,981			360,276
Securities held to maturity		22,789			24,173			24,723			29,854			32,009
Loans held for sale		848			1,274			1,377			1,075			1,182
Loans held for investment, net of unearned income		1,329,666			1,331,039			1,321,221			1,296,728			1,282,546
Less allowance for loan losses		14,797			14,736			14,486			15,984			16,543
Net loans		1,314,869			1,316,303			1,306,735			1,280,744			1,266,003
Premises and equipment		35,636			34,993			35,640			35,796			35,869
Other real estate owned		867			1,400			1,690			975			1,389
Interest receivable		10,664			10,232			10,175			9,476			9,124
Intangible assets		61,028			61,119			61,287			61,399			61,510
Other assets		39,512			41,069			39,886			41,055			36,204
Total Assets	$	1,988,862		$	1,952,483		$	1,987,514		$	1,935,258		$	1,886,836
Deposits:
Demand	$	246,521		$	230,542		$	237,455		$	235,217		$	220,741
Interest-bearing demand		149,039			144,314			152,331			150,112			154,316
Savings		362,677			355,184			375,027			350,189			364,933
Time		683,853			675,904			681,225			662,381			661,882
Total Deposits		1,442,090			1,405,944			1,446,038			1,397,899			1,401,872
Interest, taxes and other liabilities		15,471			16,153			15,169			15,122			15,625
Federal funds purchased		—			82,500			—			—			—
Securities sold under agreements to repurchase		131,009			124,154			125,739			125,285			128,244
FHLB and other indebtedness		204,192			129,231			207,180			207,231			156,822
Total Liabilities		1,792,762			1,757,982			1,794,126			1,745,537			1,702,563
Common stock, $1 par value		11,499			11,496			11,496			11,496			11,491
Additional paid-in capital		108,629			108,573			108,606			108,639			108,576
Retained earnings		86,755			82,828			78,484			74,444			71,116
Treasury stock, at cost		(8,934	)		(7,625	)		(6,897	)		(6,864	)		(6,804	)
Accumulated other comprehensive income (loss)		(1,849	)		(771	)		1,699			2,006			(106	)
Total Stockholders’ Equity		196,100			194,501			193,388			189,721			184,273
Total Liabilities and Stockholders’ Equity	$	1,988,862		$	1,952,483		$	1,987,514		$	1,935,258		$	1,886,836

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First Community Bancshares, Inc.
Selected Financial Information
(Unaudited)

	As of and for the Quarter Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2006			2005			2005			2005			2005
	(Dollars in thousands)
Ratios
Return on average assets		1.42	%		1.44	%		1.40	%		1.31	%		1.30	%
Return on average equity		14.09	%		14.69	%		14.23	%		13.19	%		13.00	%
Return on average tangible equity		20.42	%		21.58	%		21.08	%		19.78	%		19.57	%
Net interest margin		4.32	%		4.27	%		4.33	%		4.51	%		4.47	%
Efficiency Ratio for the quarter (a)		56.38	%		52.65	%		53.23	%		54.57	%		54.94	%
Efficiency Ratio year-to-date (a)		56.38	%		53.83	%		54.23	%		54.75	%		54.94	%
Equity as a percent of total assets at end of period		9.86	%		9.96	%		9.73	%		9.80	%		9.77	%
Average earning assets as a percentage of average total assets		91.39	%		92.12	%		92.09	%		91.95	%		91.93	%
Average loans as a percentage of average deposits		94.23	%		92.34	%		92.94	%		92.48	%		91.21	%
Average Balances
Investments	$	426,953		$	464,713		$	444,720		$	416,279		$	416,422
Loans		1,335,080			1,326,858			1,320,434			1,299,358			1,260,521
Earning Assets		1,790,870			1,826,221			1,804,504			1,739,147			1,707,710
Total Assets		1,959,600			1,982,411			1,959,583			1,891,333			1,857,645
Deposits		1,416,895			1,436,927			1,420,799			1,405,086			1,381,929
Interest-bearing deposits		1,185,265			1,202,972			1,187,958			1,176,779			1,162,230
Average Borrowings		330,621			334,917			331,142			284,562			273,965
Average Interest-bearing Liabilities		1,515,886			1,537,889			1,519,100			1,461,341			1,436,195
Average Equity		196,998			195,051			192,648			188,532			186,332
Tax-equivalent Net Interest Income		19,059			19,641			19,691			19,535			18,833

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

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First Community Bancshares, Inc.
Selected Financial Information
(Unaudited)

	As of and for the Quarter Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2006			2005			2005			2005			2005
		(Dollars in thousands)
Asset Quality Analysis:
Allowance for Loan Losses:
Beginning balance	$	14,736		$	14,486		$	15,984		$	16,543		$	16,339
Provision for Loan Losses		408			882			1,060			1,073			691
Charge-offs		(715	)		(1,417	)		(3,037	)		(1,638	)		(844	)
Recoveries		368			785			479			398			357
Net charge-offs		(347	)		(632	)		(2,558	)		(1,240	)		(487	)
Reclassification of allowance for lending- related commitments		—			—			—			(392	)		—
Ending balance	$	14,797		$	14,736		$	14,486		$	15,984		$	16,543
Nonperforming Assets:
Nonaccrual loans	$	2,517		$	3,383		$	5,417		$	4,132		$	6,419
Foreclosed real estate		867			1,400			1,690			975			1,389
Repossessions		8			55			14			29			26
Loans 90 days or more past due and still accruing		—			11			—			—			—
Nonperforming assets	$	3,392		$	4,849		$	7,121		$	5,136		$	7,834
Asset Quality Ratios:
Nonaccrual loans and leases as a percentage of loans held for investment		0.19	%		0.25	%		0.41	%		0.32	%		0.50	%
Nonperforming assets as a percentage of:
Total assets		0.17	%		0.25	%		0.36	%		0.27	%		0.42	%
Loans held for investment plus foreclosed property		0.25	%		0.36	%		0.54	%		0.40	%		0.61	%
Annualized net charge-offs as a % of average loans held for investment		0.10	%		0.19	%		0.77	%		0.38	%		0.15	%
Allowance for loan losses as a percentage of loans held for investment		1.11	%		1.11	%		1.10	%		1.23	%		1.29	%
Ratio of allowance for loan losses to nonaccrual loans		5.88			4.36			2.67			3.87			2.58

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First Community Bancshares, Inc.
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited)

	Three Months Ended March 31,
	2006							2005
					Yield/							Yield/
	Average		Interest		Rate			Average		Interest		Rate
	Balance		(1)		(1)			Balance		(1)		(1)
					(Dollars in thousands)
Earning Assets
Loans
Held for Investment (2)
Taxable	$	1,333,508	$	23,905		7.27	%	$	1,256,095	$	20,673		6.67	%
Tax-Exempt		1,572		31		8.00	%		4,426		83		7.60	%
Total		1,335,080		23,936		7.27	%		1,260,521		20,756		6.68	%
Securities Available for Sale
Taxable		251,530		2,873		4.63	%		240,158		2,295		3.88	%
Tax-Exempt		152,136		2,359		6.29	%		143,419		2,333		6.60	%
Total		403,666		5,232		5.26	%		383,577		4,628		4.89	%
Held to Maturity Securities
Taxable		390		5		5.20	%		406		4		4.00	%
Tax-Exempt		22,897		449		7.95	%		32,439		664		8.31	%
Total		23,287		454		7.91	%		32,845		668		8.25	%
Interest-bearing Deposits with Banks		28,837		295		4.15	%		30,767		213		2.81	%
Total Earning Assets		1,790,870	$	29,917		6.77	%		1,707,710	$	26,265		6.24	%
Other Assets		168,730							149,935
Total	$	1,959,600						$	1,857,645
Interest-bearing Liabilities
Interest-bearing Demand Deposits	$	146,467	$	106		0.29	%	$	153,323	$	92		0.24	%
Savings Deposits		359,804		1,632		1.84	%		376,218		869		0.94	%
Time Deposits		678,994		5,910		3.53	%		632,689		4,001		2.56	%
Fed Funds Purchased & Repurchase Agreements		130,579		961		2.98	%		129,352		561		1.76	%
FHLB Borrowings & Other Long-term Debt		200,042		2,249		4.56	%		144,613		1,909		5.35	%
Total Interest-bearing Liabilities		1,515,886		10,858		2.90	%		1,436,195		7,432		2.10	%
Noninterest-bearing Demand Deposits		231,630							219,699
Other Liabilities		15,086							15,419
Stockholders’ Equity		196,998							186,332
Total	$	1,959,600						$	1,857,645
Net Interest Income			$	19,059						$	18,833
Net Interest Rate Spread (3)						3.87	%						4.14	%
Net Interest Margin (4)						4.32	%						4.47	%

(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.

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