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

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE:	FOR MORE INFORMATION,
July 24, 2007	CONTACT:	David D. Brown
		(276) 326-9000

First Community Bancshares, Inc. Announces Record Earnings

Bluefield, Virginia — First Community Bancshares, Inc. (NASDAQ: FCBC) (www.fcbinc.com) today reported that second quarter earnings were a record $7.44 million, or $0.66 per diluted share. This represents a 2.02% increase over second quarter 2006 earnings of $7.29 million, or $0.65 diluted earnings per share. Return on average assets was 1.40% for the second quarter of 2007 compared with 1.47% for the second quarter of 2006. Return on average equity for the second quarter of 2007 was 13.56%, compared to 14.74% for the same period in 2006. Return on average tangible equity was 19.12% for the second quarter of 2007 compared to 21.61% for second quarter 2006.

Year-to-date earnings were also a record $14.56 million, or $1.28 diluted earnings per share, a 3.02% increase over the same period of 2006. Return on average assets for the period was 1.41% and return on average equity was 13.45% for the period.

The Company continues to see improvements in non-interest expenses. Second quarter and year-to-date non-interest expense decreased $513 thousand, or 4.08%, and $1.69 million, or 6.51%, compared with their respective 2006 periods. Salaries and benefits again led the decreases as second quarter saw a decrease of $617 thousand, or 9.10%, and year-to-date had a $2.11 million, or 14.35%, decrease compared with 2006. The continuing benefits of the consolidation of both loan and deposit operations, along with a reduction in redundant processes has led to further improvements in overall efficiency and the significant reduction in salaries and employee benefits.

The American Banker recognized the Company as one of the Nation’s top 100 most efficient banks in 2006, with its ranking based on its 51.05% efficiency ratio. The Company has continued the same improving trend in 2007 with a year-to-date efficiency ratio of 50.69%.

The Company’s efficiency program is ongoing and is moving into a second phase that will focus on consolidation of other branch processes, improved branch staffing and review of significant service contracts. These programs are targeted at further reductions in the general level of operating costs. The Company is also achieving further operating efficiencies through an internal reorganization shifting to a line of business structure.

Steadily improving credit quality metrics and net charge-offs of only $576 thousand in the second quarter led the Company to make no provision for loan losses for the second consecutive quarter. At the close of the second quarter, the Company reports its lowest ever level of non-accrual loans and non-performing assets. Nonaccrual loans reached the all-time low of $2.91 million, or 0.23% of total loans. Other real estate owned was only $593 thousand, and when combined with non-performing assets, amounted to a scant 0.16% of total assets.

Never before in the history of the Company have non-performing assets been at such low levels. The Company has strategically avoided exposure to alternative mortgage structures and high-risk development lending through disciplined underwriting and strong credit approval processes. These factors have led to very low delinquencies and non-performing metrics, as well as reduced loan loss provisions in stark contrast to many of its peers. The Company initiated these measures for enhanced credit quality over two years ago in preparation for the eventual slowdown in real estate markets.

This fall, First Community will open a new branch in the Chesterfield Towne Center in Richmond, Virginia. Construction is also underway for a new location in Mechanicsville, which will be the sixth branch in the Richmond area.

In Princeton, West Virginia, First Community Bank is building a branch office in the new Princeton Crossing retail center that 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 dominant market share of 41% in Mercer County.

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Construction is well underway for new branches in Daniels and Summersville, West Virginia. The Daniels branch is slated to open in September, and will provide a convenient banking opportunity for Glade Springs, a 4,000 acre resort and upscale housing and golfing community. In Summersville, First Community’s new branch in the growing commercial area along U.S. Route 19 will be open in first quarter 2008.

The Company’s dividend yield on common shares rose to 3.46% at the close of the second quarter on its 2007 increase in quarterly dividend rate to $0.27 per share. Mergent recognized the Company as a Dividend Achiever for its record of dividend increases. 2007 is expected to be the sixteenth year of consecutive dividend increases to shareholders.

Financial Highlights
Second Quarter 2007

• Interest income was $31.98 million, an improvement of $1.95 million, or 6.51%, over second quarter 2006. The increase over second quarter 2006 was due primarily to increases in average earning assets. The Company has been adding to its investment portfolio, and second quarter 2007 average investments increased $218.18 million, or 51.09%, over second quarter 2006.

• Net interest income was down from the second quarter of 2006 due to increases in interest expense. Second quarter interest expense increased $3.11 million, or 26.27%, from 2006. Average interest bearing liabilities increased $130.17 million, or 8.71%, compared with second quarter 2006. Tax equivalent net interest margin was 3.78%. Margin has been further compressed by the large additions of investment securities during the last half of 2006 and the first half of 2007, despite the significant positive contribution to net interest income.

• Wealth management revenues increased $273 thousand, or 37.30%, compared with the second quarter of 2006, reflective of the addition of wealth revenues by Investment Planning Consultants, Inc. beginning with its acquisition in November 2006. Other service charges, commissions, and fees increased $126 thousand, or 17.72%. Other operating income was $1.01 million for second quarter 2007, compared with $1.52 million for 2006; however, second quarter 2006 was positively impacted by a $702 thousand gain on the sale of the Company’s Drakes Branch, Virginia, office location. Total non-interest income from core banking activities increased $605 thousand, or 12.32%, compared with second quarter 2006.

• Total non-interest expenses decreased $513 thousand from second quarter 2006. The decreases are attributed to the extensive cost savings measures executed by the Company. Salaries and benefits decreased $617 thousand from the second quarter of 2006. The second quarter efficiency ratio was 50.25% compared to 50.49% in 2006, and ranks among the strongest in the industry.

• Credit quality remains very sound with total delinquencies as a percent of total loans at 0.55% at June 30, 2007, compared with 0.45% and 0.91% at June 30 and December 31, 2006, respectively. The allowance for loan losses as a percent of loans held for investment was 1.12% compared with 1.12% and 1.13% at June 30 and December 31, 2006, respectively. Non-performing assets declined to $3.50 million from $3.85 million and $4.07 million at June 30 and December 31, 2006, respectively.

• Non-performing assets as a percentage of loans held for investment and other real estate were 0.28% compared with 0.29% and 0.32% at June 30 and December 31, 2006, respectively. The Company holds no non-traditional mortgage products in its loan portfolio.

• Net charge-offs were $576 thousand compared to $898 thousand in the second quarter of 2006. As discussed previously, the Company made no provision for loan losses in the second quarter of 2007 compared with $811 thousand in the second quarter of 2006.

• On a same-branch basis, average deposits have increased $9.70 million compared to the second quarter of 2006. During 2006, the Company sold two branches with second quarter 2006 average deposits totaling $26.07 million.

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• During the second 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 second 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 3.46% based on the June 30, 2007, market value.

Year-to-Date 2007

• Interest income was $62.67 million, an improvement of $3.72 million, or 6.31%, over the first half of 2006. The increase was due primarily to increases in average earning assets.

• Net interest income was down from the first half of 2006 due to increases in interest expense. Year-to-date interest expense increased by $5.93 million, or 26.09%, from 2006. Tax equivalent net interest margin was 3.87%.

• Wealth management revenues increased $608 thousand, or 42.97%, compared to the first half of 2006. Other service charges and commissions increased $256 thousand, or 17.64%, compared to the first half of 2006. Other operating income was $862 thousand less than 2006; however, 2006 was positively impacted by a $676 thousand recovery from a 1996 payment systems fraud and a $702 thousand gain on the sale of the Drakes Branch, Virginia, office.

• Non-interest expenses decreased $1.69 million from the first half of 2006. Salaries and benefits decreased $2.11 million, or 14.35%, from 2006. The year-to-date efficiency ratio was 50.69% compared with 53.39% in 2006.

• Since year-end 2006, consolidated assets have increased $134.90 million, a 13.38% annualized growth rate, to $2.17 billion compared to $2.03 billion.

• Total stockholders’ equity for the Company was $216.26 million, resulting in a book value per common share outstanding of $19.25 compared to $212.73 million and $18.92 per common share at December 31, 2006, and $197.90 million and $17.71 per common share a year ago.

The Company will host an investor and media teleconference and webcast on Wednesday, July 25, 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 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 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 $2.17 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. The Company’s wealth management group managed assets with a market value of $861 million at June 30, 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 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
(In Thousands, Except Share and Per Share Data)(Unaudited)

		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2007			2006			2007			2006
Interest Income	Interest and fees on loans held for investment	$	23,404		$	24,506		$	46,923		$	48,431
	Interest on securities-taxable		6,030			3,224			11,011			6,101
	Interest on securities-nontaxable		2,150			1,816			4,062			3,642
	Interest on federal funds sold and deposits		395			479			669			774
	Total interest income		31,979			30,025			62,665			58,948
Interest Expense	Interest on deposits		9,748			8,326			19,048			15,973
	Interest on borrowings		5,217			3,526			9,588			6,737
	Total interest expense		14,965			11,852			28,636			22,710
	Net interest income		17,014			18,173			34,029			36,238
	Provision for loan losses		—			811			—			1,219
	Net interest income after provision for loan losses		17,014			17,362			34,029			35,019
Non-Interest Income	Wealth management income		1,005			732			2,023			1,415
	Service charges on deposit accounts		2,662			2,655			5,071			5,072
	Other service charges, commissions and fees		837			711			1,707			1,451
	Gain on sale of securities		30			(94	)		159			66
	Other operating income		1,013			1,516			1,802			2,664
	Total non-interest income		5,547			5,520			10,762			10,668
Non-Interest Expense	Salaries and employee benefits		6,165			6,782			12,576			14,683
	Occupancy expense of bank premises		1,020			1,011			2,077			2,051
	Furniture and equipment expense		780			858			1,603			1,708
	Amortization of intangible assets		105			144			208			234
	Other operating expense		4,005			3,793			7,769			7,245
	Total non-interest expense		12,075			12,588			24,233			25,921
	Income before income taxes		10,486			10,294			20,558			19,766
	Income tax expense		3,047			3,002			5,995			5,630
	Net income	$	7,439		$	7,292		$	14,563		$	14,136
	Basic earnings per common share (EPS)	$	0.66		$	0.65		$	1.29		$	1.26
	Diluted earnings per common share (DEPS)	$	0.66		$	0.65		$	1.28		$	1.25
	Weighted Average Shares Outstanding:
	Basic		11,260,868			11,201,052			11,260,126			11,216,940
	Diluted		11,320,227			11,258,581			11,334,486			11,277,032
	For the period:
	Return on average assets		1.40	%		1.47	%		1.41	%		1.45	%
	Return on average equity		13.56	%		14.74	%		13.45	%		14.42	%
	Return on average tangible equity		19.12	%		21.61	%		19.02	%		21.14	%
	Cash dividends per share	$	0.27		$	0.26		$	0.54		$	0.52
	At period end:
	Book value per share	$	19.25		$	17.71		$	19.25		$	17.71
	Market value	$	31.19		$	32.99		$	31.19		$	32.99

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

		As of and for the Quarter Ended
		June 30,		March 31,		December 31,		September 30,			June 30,
		2007		2007		2006		2006			2006
Interest Income	Interest and fees on loans held for investment	$	23,404	$	23,519	$	24,451	$	24,578		$	24,506
	Interest on securities-taxable		6,030		4,981		4,353		3,497			3,224
	Interest on securities-nontaxable		2,150		1,912		1,852		1,877			1,816
	Interest on federal funds sold and deposits		395		274		182		288			479
	Total interest income		31,979		30,686		30,838		30,240			30,025
Interest Expense	Interest on deposits		9,748		9,300		9,135		8,760			8,326
	Interest on borrowings		5,217		4,371		4,052		3,724			3,526
	Total interest expense		14,965		13,671		13,187		12,484			11,852
	Net interest income		17,014		17,015		17,651		17,756			18,173
	Provision for loan losses		—		—		908		579			811
	Net interest income after provision for loan losses		17,014		17,015		16,743		17,177			17,362
Non-Int Income	Wealth management income		1,005		1,018		773		623			732
	Service charges on deposit accounts		2,662		2,409		2,559		2,611			2,655
	Other service charges, commissions and fees		837		870		791		750			711
	(Loss) gain on sale of securities		30		129		15		(6	)		(94	)
	Other operating income		1,013		789		1,419		1,120			1,516
	Total non-interest income		5,547		5,215		5,557		5,098			5,520
Non-Int Expense	Salaries and employee benefits		6,165		6,411		6,033		6,151			6,782
	Occupancy expense of bank premises		1,020		1,057		978		1,039			1,011
	Furniture and equipment expense		780		823		887		871			858
	Amortization of intangible assets		105		103		88		88			144
	Other operating expense		4,005		3,764		3,717		4,064			3,793
	Total non-interest expense		12,075		12,158		11,703		12,213			12,588
	Income before income taxes		10,486		10,072		10,597		10,062			10,294
	Income tax expense		3,047		2,948		2,970		2,877			3,002
	Net income	$	7,439	$	7,124	$	7,627	$	7,185		$	7,292
Per Share	Basic EPS	$	0.66	$	0.63	$	0.68	$	0.64		$	0.65
	Diluted EPS	$	0.66	$	0.63	$	0.68	$	0.64		$	0.65
	Cash dividends per share	$	0.27	$	0.27	$	0.26	$	0.26		$	0.26
	Weighted Average Shares Outstanding:
	Basic		11,260,868		11,259,375		11,211,535		11,174,479			11,201,052
	Diluted		11,320,227		11,346,828		11,297,931		11,245,073			11,258,581
	Actual shares oustanding at period end		11,232,466		11,271,302		11,245,742		11,183,668			11,176,455
	Book Value per share at period end	$	19.25	$	19.33	$	18.92	$	18.40		$	17.71
	Market Value per share at period end	$	31.19	$	39.00	$	39.56	$	33.37		$	32.99

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

	June 30,			March 31,			December 31,			September 30,			June 30,
(In Thousands)	2007			2007			2006			2006			2006
Cash and due from banks	$	40,879		$	42,394		$	47,909		$	38,961		$	43,620
Interest-bearing deposits with banks		33,380			17,082			9,850			13,473			29,714
Securities available for sale		658,901			612,977			508,370			475,528			405,761
Securities held to maturity		13,177			19,266			20,019			20,250			20,641
Loans held for sale		1,818			1,068			781			1,046			1,293
Loans held for investment, net of unearned income		1,243,076			1,258,847			1,284,863			1,299,220			1,318,943
Less allowance for loan losses		13,934			14,510			14,549			14,946			14,710
Net loans		1,229,142			1,244,337			1,270,314			1,284,274			1,304,233
Premises and equipment		42,274			38,381			36,889			35,879			35,888
Other real estate owned		593			600			258			753			910
Interest receivable		12,892			11,835			12,141			11,435			10,179
Intangible assets		62,017			62,092			62,196			60,796			60,883
Other assets		73,522			65,763			64,971			65,174			66,510
Total Assets	$	2,168,595		$	2,115,795		$	2,033,698		$	2,007,569		$	1,979,632
Deposits:
Demand	$	241,423		$	242,254		$	244,771		$	245,097		$	253,664
Interest-bearing demand		143,080			148,735			140,578			145,519			139,861
Savings		333,855			325,454			317,678			327,120			344,436
Time		703,602			703,141			691,744			678,490			672,047
Total Deposits		1,421,960			1,419,584			1,394,771			1,396,226			1,410,008
Interest, taxes and other liabilities		21,000			20,522			19,641			19,223			18,056
Federal funds purchased		—			45,000			7,700			15,500			—
Securities sold under agreements to repurchase		217,987			220,198			201,185			172,711			149,507
FHLB and other indebtedness		291,387			192,654			197,671			198,127			204,158
Total Liabilities		1,952,334			1,897,958			1,820,968			1,801,787			1,781,729
Common stock, $1 par value		11,499			11,499			11,499			11,499			11,499
Additional paid-in capital		108,633			108,769			108,806			108,605			108,602
Retained earnings		108,601			104,198			100,117			95,414			91,136
Treasury stock, at cost		(8,341	)		(7,124	)		(7,924	)		(9,866	)		(10,097	)
Accumulated other comprehensive income (loss)		(4,131	)		495			232			130			(3,237	)
Total Stockholders’ Equity		216,261			217,837			212,730			205,782			197,903
Total Liabilities and Stockholders’ Equity	$	2,168,595		$	2,115,795		$	2,033,698		$	2,007,569		$	1,979,632

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

	As of and for the Quarter Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2007			2007			2006			2006			2006
	(Dollars in Thousands)
Ratios
Return on average assets		1.40	%		1.42	%		1.51	%		1.45	%		1.47	%
Return on average equity		13.56	%		13.33	%		14.41	%		14.05	%		14.74	%
Return on average tangible equity		19.12	%		18.92	%		20.57	%		20.29	%		21.61	%
Net interest margin		3.78	%		3.98	%		4.09	%		4.20	%		4.28	%
Efficiency ratio for the quarter (a)		50.25	%		51.13	%		48.02	%		49.44	%		50.49	%
Efficiency ratio year-to-date (a)		50.69	%		51.13	%		51.05	%		52.07	%		53.39	%
Equity as a percent of total assets at end of period		9.97	%		10.30	%		10.46	%		10.25	%		10.00	%
Average earning assets as a percentage of average total assets		90.47	%		90.39	%		90.32	%		90.06	%		90.55	%
Average loans as a percentage of average deposits		88.82	%		90.90	%		92.97	%		93.52	%		93.06	%
Average Balances
Investments	$	645,266		$	552,383		$	501,042		$	443,680		$	427,085
Loans		1,253,679			1,265,628			1,296,754			1,305,839			1,328,768
Earning assets		1,931,247			1,841,235			1,812,181			1,774,277			1,797,214
Total assets		2,134,612			2,037,006			2,006,377			1,970,003			1,984,741
Deposits		1,411,476			1,392,309			1,394,881			1,396,271			1,427,845
Interest-bearing deposits		1,176,940			1,162,735			1,156,582			1,155,743			1,187,549
Borrowings		484,410			408,726			381,845			351,909			340,694
Interest-bearing liabilities		1,661,350			1,571,461			1,541,702			1,510,816			1,531,183
Equity		219,989			216,807			209,985			202,922			198,440
Tax equivalent net interest income		18,186			18,057			18,660			18,775			19,161

(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
	June 30,			March 31,			December 31,			September 30,			June 30,
	2007			2007			2006			2006			2006
	(Dollars in Thousands)
Summary of Loan Loss Experience
Allowance for Loan Losses:
Beginning balance	$	14,510		$	14,549		$	14,946		$	14,710		$	14,797
Provision for Loan Losses		—			—			908			579			811
Charge-offs		(911	)		(893	)		(1,607	)		(832	)		(1,389	)
Recoveries		335			854			302			489			491
Net charge-offs		(576	)		(39	)		(1,305	)		(343	)		(898	)
Ending balance	$	13,934		$	14,510		$	14,549		$	14,946		$	14,710
Summary of Asset Quality
Nonaccrual loans	$	2,910		$	4,074		$	3,813		$	3,657		$	2,937
Loans 90 days or more past due and still accruing		—			—			—			—			—
Total non-performing loans		2,910			4,074			3,813			3,657			2,937
Other real estate owned		593			600			258			753			910
Total non-performing assets	$	3,503		$	4,674		$	4,071		$	4,410		$	3,847
Restructured loans	$	256		$	265		$	272		$	281		$	289
Asset Quality Ratios
Non-performing loans as a percentage of loans held for investment		0.23	%		0.32	%		0.30	%		0.28	%		0.22	%
Non-performing assets as a percentage of:
Total assets		0.16	%		0.22	%		0.20	%		0.22	%		0.19	%
Loans held for investment plus other real estate owned		0.28	%		0.37	%		0.32	%		0.34	%		0.29	%
Annualized net charge-offs as a percentage of average loans held for investment		0.18	%		0.01	%		0.40	%		0.10	%		0.27	%
Allowance for loan losses as a percentage of loans held for investment		1.12	%		1.15	%		1.13	%		1.15	%		1.12	%
Ratio of allowance for loan losses to nonaccrual loans		4.79			3.56			3.82			4.09			5.01

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

	Three Months Ended June 30,
	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	$	1,251,696	$	23,379		7.49	%	$	1,327,278	$	24,487		7.40	%
Tax Exempt		1,983		38		7.69	%		1,490		30		8.08	%
Total		1,253,679		23,417		7.49	%		1,328,768		24,517		7.40	%
Securities Available for Sale
Taxable		439,504		6,024		5.50	%		257,838		3,218		5.01	%
Tax Exempt		189,526		2,993		6.33	%		147,869		2,367		6.42	%
Total		629,030		9,017		5.75	%		405,707		5,585		5.52	%
Held to Maturity Securities
Taxable		378		6		6.37	%		388		5		5.17	%
Tax Exempt		15,858		316		7.99	%		20,990		427		8.16	%
Total		16,236		322		7.95	%		21,378		432		8.11	%
Interest-bearing Deposits with Banks		32,302		395		4.90	%		41,361		479		4.65	%
Total Earning Assets		1,931,247	$	33,151		6.89	%		1,797,214	$	31,013		6.92	%
Other Assets		203,365							187,527
Total	$	2,134,612						$	1,984,741
Interest-bearing Liabilities
Interest-bearing Demand Deposits	$	147,570	$	118		0.32	%	$	148,502	$	111		0.30	%
Savings Deposits		324,759		1,776		2.19	%		355,826		1,761		1.99	%
Time Deposits		704,611		7,854		4.47	%		683,221		6,454		3.79	%
Fed Funds Purchased & Repurchase Agreements		228,856		2,206		3.87	%		136,522		1,142		3.36	%
FHLB Borrowings & Other Long-term Debt		255,554		3,011		4.73	%		204,172		2,384		4.68	%
Total Interest-bearing Liabilities		1,661,350		14,965		3.61	%		1,528,243		11,852		3.11	%
Noninterest-bearing Demand Deposits		234,536							240,296
Other Liabilities		18,737							17,762
Stockholders’ Equity		219,989							198,440
Total	$	2,134,612						$	1,984,741
Net Interest Income			$	18,186						$	19,161
Net Interest Rate Spread (3)						3.28	%						3.81	%
Net Interest Margin (4)						3.78	%						4.28	%

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

	Six Months Ended June 30,
	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	$	1,257,722	$	46,877		7.52	%	$	1,330,375	$	48,391		7.34	%
Tax Exempt		1,898		71		7.54	%		1,531		62		8.17	%
Total		1,259,620		46,948		7.52	%		1,331,906		48,453		7.34	%
Securities Available for Sale
Taxable		405,390		10,999		5.47	%		254,702		6,091		4.82	%
Tax Exempt		175,701		5,553		6.37	%		149,991		4,726		6.35	%
Total		581,091		16,552		5.74	%		404,693		10,817		5.39	%
Held to Maturity Securities
Taxable		380		12		6.37	%		389		10		5.18	%
Tax Exempt		17,611		699		8.00	%		21,938		876		8.05	%
Total		17,991		711		7.97	%		22,327		886		8.00	%
Interest-bearing Deposits with Banks		27,788		669		4.85	%		35,134		774		4.44	%
Total Earning Assets		1,886,490	$	64,880		6.94	%		1,794,060	$	60,930		6.85	%
Other Assets		199,588							178,179
Total	$	2,086,078						$	1,972,239
Interest-bearing Liabilities
Interest-bearing Demand Deposits	$	146,770	$	229		0.31	%	$	147,490	$	217		0.30	%
Savings Deposits		322,223		3,449		2.16	%		357,804		3,393		1.91	%
Time Deposits		700,884		15,370		4.42	%		679,745		12,363		3.67	%
Fed Funds Purchased & Repurchase Agreements		221,695		4,241		3.86	%		133,566		2,103		3.18	%
FHLB Borrowings & Other Long-term Debt		225,082		5,347		4.79	%		202,118		4,634		4.62	%
Total Interest-bearing Liabilities		1,616,654		28,636		3.57	%		1,520,723		22,710		3.01	%
Noninterest-bearing Demand Deposits		232,069							235,987
Other Liabilities		18,949							17,806
Stockholders’ Equity		218,406							197,723
Total	$	2,086,078						$	1,972,239
Net Interest Income			$	36,244						$	38,220
Net Interest Rate Spread (3)						3.37	%						3.84	%
Net Interest Margin (4)						3.87	%						4.30	%

(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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