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

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE:	FOR MORE INFORMATION,
May 1, 2007	CONTACT:     David D. Brown
	(276) 326-9000

First Community Bancshares, Inc. Announces Record First Quarter Earnings

Bluefield, Virginia — First Community Bancshares, Inc. (NASDAQ: FCBC) (www.fcbinc.com) today reported that first quarter earnings were a record $7.12 million, or $0.63 per diluted share. This represents a 4.09% increase over first quarter 2006 earnings of $6.84 million, or $0.61 diluted earnings per share. Return on average assets was 1.42% for both the first quarter of 2007 and 2006. Return on average equity for the first quarter of 2007 was 13.33%, compared to 14.09% for the same period in 2006. Return on average tangible equity was 18.92% for the first quarter of 2007, compared to 20.42% for first quarter 2006.

Non-interest expenses continued to improve as the most recent quarter saw a decrease of $1.18 million, or 8.81%, compared to first quarter 2006. Total salaries and benefits decreased $1.49 million, or 18.86%, compared to the first quarter of 2006.

Over the past four quarters, declines in the loan portfolio reflect attention to underwriting and credit standards in the face of slowing real estate markets. Lower loan volumes and a high level of recoveries led the Company to make no provision for loan losses in the first quarter of 2007.

In March, First Community opened two new branches in the Winston-Salem, North Carolina, area. Branches opened in the Winston-Salem area are on River Ridge Drive in Clemmons and in the Shops at Oliver’s Crossing.

In August, First Community will open a new branch in the Chesterfield Towne Center in Richmond, Virginia. A new location is also planned for Mechanicsville, which will be the sixth branch in the Richmond area.

In Princeton, West Virginia, First Community Bank just announced construction of a new branch. The branch will be in the new Princeton Crossing retail center and will further reinforce First Community’s reputation as the most convenient bank in the region. First Community has deposit footings of over $380 million and a 41% market share in Mercer County.

First Community is also looking forward to opening new branches in Daniels and Summersville, West Virginia, later in the year. The Daniels branch will provide a convenient banking opportunity for Glade Springs, a 4,000 acre resort and upscale housing and golfing community. In Summersville, First Community is building a new branch in the growing commercial area along highway 19.

Financial Highlights

• Interest income was $30.69 million, an improvement of $1.76 million, or 6.10%, over first quarter 2006. The increase was due primarily to continued upward repricing associated with increases in benchmark interest rates in 2006 and increases in average earning assets.

• Net interest income was down from the first quarter of 2006 due to increases in interest expense. First quarter interest expense increased by $2.81 million, or 25.91% from 2006. On a linked-quarter basis, interest expense increased $484 thousand, or 3.67%, the slowest increase in the last four quarters. Tax equivalent net interest margin was 3.98%.

• Non-interest income was $5.22 million compared to $5.15 million in 2006. Wealth management revenues increased $335 thousand compared to the first quarter of 2006, reflective of the addition of Investment Planning Consultants, Inc. in November 2006. Other service charges and commissions increased $130 thousand compared to the first quarter of 2006. Other operating income also includes the adjusted earnings of approximately $160 thousand from the Company’s

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bank-owned life insurance investment of $25 million. New accounting guidance requires that certain portions of the cash surrender value of life insurance be recorded at their present value. The current quarter’s BOLI earnings have been reduced by approximately $194 thousand as a result of the adoption of the new accounting standard. First quarter 2006 was positively impacted by a $676 thousand recovery from a 1996 payment systems fraud.

• Non-interest expenses decreased $1.18 million from first quarter 2006. The decreases are attributed to the extensive cost savings measures implemented by the Company during the past six quarters. Salaries and benefits decreased $1.49 million from first quarter of 2006. The first quarter efficiency ratio was 51.13% compared to 56.38% in 2006.

• Credit quality remains sound with total delinquencies as a percent of total loans at 0.61% at March 31, 2007, compared to 0.50% and 0.91% at March 31 and December 31, 2006, respectively. The ratio of allowance for loan losses as a percent of loans held for investment was 1.15% compared to 1.11% and 1.13% at March 31 and December 31, 2006, respectively. Non-performing assets were $4.67 million, compared to $3.38 million and $4.07 million at March 31 and December 31, 2006, respectively.

• Non-performing assets as a percentage of loans held for investment and other real estate were 0.37% compared to 0.25% and 0.32% at March 31 and December 31, 2006, respectively. The Company holds no non-traditional mortgage products in its loan portfolio.

• Net charge-offs were $39 thousand compared to $1.31 million in the fourth quarter of 2006 and $347 thousand in first quarter 2006. First quarter gross charge-offs were fairly consistent compared with prior quarters, but the Company experienced a much higher level of recoveries. Gross charge-offs in the fourth quarter of 2006 were elevated due mainly to the $530 thousand charge-off of a single relationship. During the first quarter of 2007, the Company recovered a significant portion of what was charged off late in the last quarter. As discussed previously, the Company made no provision for loan losses in the first quarter of 2007 compared to $408 thousand in the comparable quarter of 2006.

• On a same-branch basis, average deposits have increased $4.91 million compared to the first quarter of 2006. During 2006, the Company sold two branches with first quarter 2006 average deposits totaling $26.73 million.

• Since year-end 2006, consolidated assets have increased $82.10 million, a 16.37% annualized growth rate, to $2.12 billion compared to $2.03 billion.

• Total stockholders’ equity for the Company was $217.84 million, resulting in a book value per common share outstanding of $19.33 compared to $212.73 million and $18.92 per common share at December 31, 2006.

• During the first quarter, the board of directors declared a dividend to stockholders of twenty-seven cents ($0.27) per share. The dividend represents an increase of 3.85% over the $0.26 per share paid in the first quarter of 2006. The year 2007 is projected to be the 16^th consecutive year of dividend increases to stockholders. Dividends have increased at an average annual rate of over 10% since 1991. The first quarter dividend yield was 2.77% based on the March 31, 2007, market value.

The Company will host an investor and media teleconference and webcast on Wednesday, May 2, 2007, 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, visit www.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 2007 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, Chief Financial Officer, at (800) 425-0839.

First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a $2.12 billion financial holding company and is the parent company of First Community Bank, N. A. First Community Bank, N. A. operates through fifty-six locations and four wealth management offices in the four states of Virginia, West Virginia, North 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.

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The Company’s wealth management group managed assets with a market value of $817 million at March 31, 2007. 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 onForm 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

		Three Months Ended
		March 31,
(Dollars in Thousands, Except Share and Per Share Data)(Unaudited)		2007			2006
Interest	Interest and fees on loans held for investment	$	23,519		$	23,925
Income	Interest on securities-taxable		4,981			2,877
	Interest on securities-nontaxable		1,912			1,826
	Interest on federal funds sold and deposits		274			295
	Total interest income		30,686			28,923
Interest	Interest on deposits		9,300			7,647
Expense	Interest on borrowings		4,371			3,211
	Total interest expense		13,671			10,858
	Net interest income		17,015			18,065
	Provision for loan losses		—			408
	Net interest income after provision for loan losses		17,015			17,657
Non-Interest	Wealth management income		1,018			683
Income	Service charges on deposit accounts		2,409			2,417
	Other service charges, commissions and fees		870			740
	Gain on sale of securities		129			160
	Other operating income		789			1,148
	Total non-interest income		5,215			5,148
Non-Interest	Salaries and employee benefits		6,411			7,901
Expense	Occupancy expense of bank premises		1,057			1,040
	Furniture and equipment expense		823			850
	Amortization of intangible assets		103			90
	Other operating expense		3,764			3,452
	Total non-interest expense		12,158			13,333
	Income before income taxes		10,072			9,472
	Income tax expense		2,948			2,628
	Net income	$	7,124		$	6,844
	Basic earnings per common share (EPS)	$	0.63		$	0.61
	Diluted earnings per common share (DEPS)	$	0.63		$	0.61
	Weighted Average Shares Outstanding:
	Basic		11,259,375			11,233,005
	Diluted		11,346,828			11,311,743
	For the period:
	Return on average assets		1.42	%		1.42	%
	Return on average equity		13.33	%		14.09	%
	Return on average tangible equity		18.92	%		20.42	%
	Cash dividends per share	$	0.27		$	0.26
	At period end:
	Book value per share	$	19.33		$	17.49
	Market value	$	39.00		$	31.98

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First Community Bancshares, Inc.
Quarterly Performance Summary
Income Statements

		As of and for the Quarter Ended
		March 31,		December 31,		September 30,			June 30,			March 31,
(Dollars in Thousands Except Share and Per Share Data)(Unaudited)			2007		2006		2006			2006			2006
Interest	Interest and fees on loans held for investment	$	23,519	$	24,451	$	24,578		$	24,506		$	23,925
Income	Interest on securities-taxable		4,981		4,353		3,497			3,224			2,877
	Interest on securities-nontaxable		1,912		1,852		1,877			1,816			1,826
	Interest on federal funds sold and deposits		274		182		288			479			295
	Total interest income		30,686		30,838		30,240			30,025			28,923
Interest	Interest on deposits		9,300		9,135		8,760			8,326			7,647
Expense	Interest on borrowings		4,371		4,052		3,724			3,526			3,211
	Total interest expense		13,671		13,187		12,484			11,852			10,858
	Net interest income		17,015		17,651		17,756			18,173			18,065
	Provision for loan losses		—		908		579			811			408
	Net interest income after provision for loan losses		17,015		16,743		17,177			17,362			17,657
Non-Int	Wealth management income		1,018		773		623			732			683
Income	Service charges on deposit accounts		2,409		2,559		2,611			2,655			2,417
	Other service charges, commissions and fees		870		791		750			711			740
	(Loss) gain on sale of securities		129		15		(6	)		(94	)		160
	Other operating income		789		1,419		1,120			1,516			1,148
	Total non-interest income		5,215		5,557		5,098			5,520			5,148
Non-Int	Salaries and employee benefits		6,411		6,033		6,151			6,782			7,901
Expense	Occupancy expense of bank premises		1,057		978		1,039			1,011			1,040
	Furniture and equipment expense		823		887		871			858			850
	Amortization of intangible assets		103		88		88			144			90
	Other operating expense		3,764		3,717		4,064			3,793			3,452
	Total non-interest expense		12,158		11,703		12,213			12,588			13,333
	Income before income taxes		10,072		10,597		10,062			10,294			9,472
	Income tax expense		2,948		2,970		2,877			3,002			2,628
	Net income	$	7,124	$	7,627	$	7,185		$	7,292		$	6,844
Per	Basic EPS	$	0.63	$	0.68	$	0.64		$	0.65		$	0.61
Share	Diluted EPS	$	0.63	$	0.68	$	0.64		$	0.65		$	0.61
	Cash dividends per share	$	0.27	$	0.26	$	0.26		$	0.26		$	0.26
	Weighted Average Shares Outstanding:
	Basic		11,259,375		11,211,535		11,174,479			11,201,052			11,233,005
	Diluted		11,346,828		11,297,931		11,245,073			11,258,581			11,311,743
	Actual shares oustanding at period end		11,271,302		11,245,742		11,183,668			11,176,455			11,214,584
	Book Value per share at period end	$	19.33	$	18.92	$	18.40		$	17.71		$	17.49
	Market Value per share at period end	$	39.00	$	39.56	$	33.37		$	32.99		$	31.98

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

	March 31,			December 31,			September 30,			June 30,			March 31,
	2007			2006			2006			2006			2006
	(Dollars in thousands)
Cash and due from banks	$	42,394		$	47,909		$	38,961		$	43,620		$	46,953
Interest-bearing deposits with banks		17,082			9,850			13,473			29,714			59,005
Securities available for sale		612,977			508,370			475,528			405,761			396,691
Securities held to maturity		19,266			20,019			20,250			20,641			22,789
Loans held for sale		1,068			781			1,046			1,293			848
Loans held for investment, net of unearned income		1,258,847			1,284,863			1,299,220			1,318,943			1,329,666
Less allowance for loan losses		14,510			14,549			14,946			14,710			14,797
Net loans		1,244,337			1,270,314			1,284,274			1,304,233			1,314,869
Premises and equipment		38,381			36,889			35,879			35,888			35,636
Other real estate owned		600			258			753			910			867
Interest receivable		11,835			12,141			11,435			10,179			10,664
Intangible assets		62,092			62,196			60,796			60,883			61,028
Other assets		65,763			64,971			65,174			66,510			39,512
Total Assets	$	2,115,795		$	2,033,698		$	2,007,569		$	1,979,632		$	1,988,862
Deposits:
Demand	$	242,254		$	244,771		$	245,097		$	253,664		$	246,521
Interest-bearing demand		148,735			140,578			145,519			139,861			149,039
Savings		325,454			317,678			327,120			344,436			362,677
Time		703,141			691,744			678,490			672,047			681,041
Total Deposits		1,419,584			1,394,771			1,396,226			1,410,008			1,439,278
Interest, taxes and other liabilities		20,522			19,641			19,223			18,056			18,283
Federal funds purchased		45,000			7,700			15,500			—			—
Securities sold under agreements to repurchase		220,198			201,185			172,711			149,507			131,009
FHLB and other indebtedness		192,654			197,671			198,127			204,158			204,192
Total Liabilities		1,897,958			1,820,968			1,801,787			1,781,729			1,792,762
Common stock, $1 par value		11,499			11,499			11,499			11,499			11,499
Additional paid-in capital		108,769			108,806			108,605			108,602			108,629
Retained earnings		104,198			100,117			95,414			91,136			86,755
Treasury stock, at cost		(7,124	)		(7,924	)		(9,866	)		(10,097	)		(8,934	)
Accumulated other comprehensive income (loss)		495			232			130			(3,237	)		(1,849	)
Total Stockholders’ Equity		217,837			212,730			205,782			197,903			196,100
Total Liabilities and
Stockholders’ Equity	$	2,115,795		$	2,033,698		$	2,007,569		$	1,979,632		$	1,988,862

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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,
	2007			2006			2006			2006			2006
	(Dollars in thousands)
Ratios
Return on average assets		1.42	%		1.51	%		1.45	%		1.47	%		1.42	%
Return on average equity		13.33	%		14.41	%		14.05	%		14.74	%		14.09	%
Return on average tangible equity		18.92	%		20.57	%		20.29	%		21.61	%		20.42	%
Net interest margin		3.98	%		4.09	%		4.20	%		4.28	%		4.32	%
Efficiency ratio for the quarter (a)		51.13	%		48.02	%		49.44	%		50.49	%		56.38	%
Efficiency ratio year-to-date (a)		51.13	%		51.05	%		52.07	%		53.39	%		56.38	%
Equity as a percent of total assets at end of period		10.30	%		10.46	%		10.25	%		10.00	%		9.86	%
Average earning assets as a percentage of average total assets		90.39	%		90.32	%		90.06	%		90.55	%		91.39	%
Average loans as a percentage of average deposits		90.90	%		92.97	%		93.52	%		93.06	%		94.41	%
Average Balances
Investments	$	552,383		$	501,042		$	443,680		$	427,085		$	426,953
Loans		1,265,628			1,296,754			1,305,839			1,328,768			1,335,080
Earning assets		1,841,235			1,812,181			1,774,277			1,797,214			1,790,870
Total assets		2,037,006			2,006,377			1,970,003			1,984,741			1,959,600
Deposits		1,392,309			1,394,881			1,396,271			1,427,845			1,414,130
Interest-bearing deposits		1,162,735			1,156,582			1,155,743			1,187,549			1,182,500
Borrowings		408,726			381,845			351,909			340,694			330,621
Interest-bearing liabilities		1,571,461			1,541,702			1,510,816			1,531,183			1,515,886
Equity		216,807			209,985			202,922			198,440			196,998
Tax equivalent net interest income		18,057			18,660			18,775			19,161			19,059

(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,
	2007			2006			2006			2006			2006
	(Dollars in thousands)
Summary of Loan Loss Experience
Allowance for Loan Losses:
Beginning balance	$	14,549		$	14,946		$	14,710		$	14,797		$	14,736
Provision for Loan Losses		—			908			579			811			408
Charge-offs		(893	)		(1,607	)		(832	)		(1,389	)		(715	)
Recoveries		854			302			489			491			368
Net charge-offs		(39	)		(1,305	)		(343	)		(898	)		(347	)
Ending balance	$	14,510		$	14,549		$	14,946		$	14,710		$	14,797
Summary of Asset Quality
Nonaccrual loans	$	4,074		$	3,813		$	3,657		$	2,937		$	2,517
Loans 90 days or more past due and still accruing		—			—			—			—			—
Total non-performing loans		4,074			3,813			3,657			2,937			2,517
Other real estate owned		600			258			753			910			867
Total non-performing assets	$	4,674		$	4,071		$	4,410		$	3,847		$	3,384
Restructured loans	$	265		$	272		$	281		$	289		$	297
Asset Quality Ratios
Non-performing loans as a percentage of loans held for investment		0.32	%		0.30	%		0.28	%		0.22	%		0.19	%
Non-performing assets as a percentage of:
Total assets		0.22	%		0.20	%		0.22	%		0.19	%		0.17	%
Loans held for investment plus other real estate owned		0.37	%		0.32	%		0.34	%		0.29	%		0.25	%
Annualized net charge-offs as a percentage of average loans held for investment		0.01	%		0.40	%		0.10	%		0.27	%		0.11	%
Allowance for loan losses as a percentage of loans held for investment		1.15	%		1.13	%		1.15	%		1.12	%		1.11	%
Ratio of allowance for loan losses to nonaccrual loans		3.56			3.82			4.09			5.01			5.88

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

	Three Months Ended March 31,
	2007							2006
					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	$	1,263,816	$	23,497		7.54	%	$	1,333,508	$	23,905		7.27	%
Tax Exempt		1,812		33		7.39	%		1,572		31		8.00	%
Total		1,265,628		23,530		7.54	%		1,335,080		23,936		7.27	%
Securities Available for Sale
Taxable		370,897		4,976		5.44	%		251,530		2,873		4.63	%
Tax Exempt		161,721		2,561		6.42	%		152,136		2,359		6.29	%
Total		532,618		7,537		5.74	%		403,666		5,232		5.26	%
Held to Maturity Securities
Taxable		382		5		5.31	%		390		5		5.20	%
Tax Exempt		19,383		382		7.99	%		22,897		449		7.95	%
Total		19,765		387		7.94	%		23,287		454		7.91	%
Interest-bearing Deposits with Banks		23,224		274		4.78	%		28,837		295		4.15	%
Total Earning Assets		1,841,235	$	31,728		6.99	%		1,790,870	$	29,917		6.77	%
Other Assets		195,771							168,730
Total	$	2,037,006						$	1,959,600
Interest-bearing Liabilities
Interest-bearing Demand Deposits	$	145,960	$	112		0.31	%	$	146,467	$	106		0.29	%
Savings Deposits		319,660		1,674		2.12	%		359,804		1,632		1.84	%
Time Deposits		697,115		7,514		4.37	%		676,229		5,910		3.54	%
Fed Funds Purchased & Repurchase Agreements		214,455		2,034		3.85	%		130,579		961		2.98	%
FHLB Borrowings & Other Long-term Debt		194,271		2,337		4.88	%		200,042		2,249		4.56	%
Total Interest-bearing Liabilities		1,571,461		13,671		3.53	%		1,513,121		10,858		2.91	%
Noninterest-bearing Demand Deposits		229,574							231,630
Other Liabilities		19,164							17,851
Stockholders’ Equity		216,807							196,998
Total	$	2,037,006						$	1,959,600
Net Interest Income			$	18,057						$	19,059
Net Interest Rate Spread (3)						3.46	%						3.86	%
Net Interest Margin (4)						3.98	%						4.32	%

(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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