First Community Bankshares (FCBC) 8-K First Community Bancshares, Inc. Announces Increased Third Quarter and Year-to-Date Earnings

Exhibit 99.1

NEWS RELEASE

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

First Community Bancshares, Inc. Announces Increased Third Quarter and Year-to-Date Earnings

Bluefield, Virginia — First Community Bancshares, Inc. (NASDAQ: FCBC) (www.fcbinc.com) today reported that third quarter earnings were $7.32 million, or $0.65 per diluted share. This represents a 1.82% increase over third quarter 2006 earnings of $7.19 million, or $0.64 diluted earnings per share. Return on average assets was 1.34% for the third quarter of 2007 compared with 1.45% for the third quarter of 2006. Return on average equity for the third quarter of 2007 was 13.31%, compared to 14.05% for the same period in 2006. Return on average tangible equity was 18.86% for the third quarter of 2007 compared to 20.29% for third quarter 2006.

Year-to-date earnings were $21.88 million, or $1.94 diluted earnings per share, a 2.62% increase over the same period of 2006. Return on average assets for the period was 1.38% and return on average equity was 13.40% for the period. On a core earnings basis, which excludes after-tax non-recurring gains of $841 thousand realized in 2006, year-to-date earnings increased 6.56% over the prior year.

Non-interest income of $6.02 million improved 18.09% over third quarter 2006 of $5.10 million. Wealth management income improved by 45.75%, service charges on deposit accounts increased by 15.13%, and other service charges improved 20.27%. During the third quarter, the Company introduced its new deposit product set which features several new value-added checking accounts and a new interest checking plan. The products were introduced mid-August, and in the first ten weeks the Company opened 1,300 new fee-based, value accounts.

The Company continues to see non-performing assets at historically low levels. Very strong credit quality and net charge-offs of only $744 thousand in the third quarter led the Company to make no provision for loan losses for the third consecutive quarter. At the close of the third quarter, nonaccrual loans stood at a record low of $2.87 million, or 0.23% of total loans, and other real estate owned was at a low of $211 thousand.

John M. Mendez, President and Chief Executive Officer, said, “We are very pleased with our results in light of increasingly difficult operating environments. First Community’s credit quality continues to be among the best in the industry and puts us in an enviable position given the current credit problems seen by many of our peers.”

The second phase of the Company’s efficiency program was largely completed during the third quarter. The second phase focused on consolidation of other branch processes, improved branch staffing and a review of significant service contracts. The effects of the changes to branch processes and staffing will become apparent in the fourth quarter, and will be fully in place by the beginning of first quarter 2008. The efficiency program is 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.

The Company also made progress in the commercial line. Four new commercial relationship officers were hired for the Richmond, East Tennessee, and Carolina markets. The Company expects the new commercial loan production to begin positively impacting loan outstandings by the middle of first quarter 2008.

Near the end of the third quarter, the Company acquired GreenPoint Insurance Group, a High Point, North Carolina, insurance agency. GreenPoint is a full-service insurance agency offering commercial and personal lines, property and casualty, life, and health insurance, and earns annualized commission revenues of approximately $4.43 million.

-1-

The Company opened its newest branch in Daniels, West Virginia, on October 1, 2007. The new branch provides a convenient banking opportunity for residents of Glade Springs, a 4,000 acre resort and upscale housing and golf community.

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, Virginia, which will be the sixth branch in the Richmond area. Construction is almost complete for the Company’s sixth branch in the Richmond area, located in Mechanicsville, Virginia, and will be open mid-November.

In Princeton, West Virginia, First Community Bank’s newest branch in the Princeton Crossing retail center will open in mid-November. The Princeton Crossing branch will further reinforce First Community’s position 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, West Virginia.

Construction is almost complete for the new branch in Summersville, West Virginia, which should open during the first quarter of 2008.

Financial Highlights
Third Quarter 2007

• Interest income was $32.73 million, an improvement of $2.49 million, or 8.24%, over third quarter 2006. The increase over third quarter 2006 was due primarily to increases in average earning assets. The Company has been adding to its investment portfolio, and third quarter 2007 average investments increased $235.11 million, or 52.99%, over third quarter 2006.

• Net interest income was down from the third quarter of 2006 due to increases in interest expense. However, net interest income was up $129 thousand, or 0.76%, from last quarter. Third quarter interest expense increased $3.11 million, or 24.87%, from 2006. Although the Company experienced extreme increases in funding costs compared to the prior year, the velocity of the increases is beginning to slow. Third quarter cost of interest-bearing liabilities increased only two basis points compared to second quarter, whereas second quarter had increased eight basis points over first quarter. Average interest bearing liabilities increased $196.59 million, or 13.04%, compared with third quarter 2006. Tax equivalent net interest margin was 3.70%. Margin has been further compressed by the large additions of investment securities, rather than loans, during the last half of 2006 and 2007, despite the significant positive contribution to net interest income.

• Wealth management revenues increased $285 thousand, or 45.75%, compared with the third quarter of 2006, reflective of the addition of wealth revenues from Investment Planning Consultants, Inc. beginning with its acquisition in November 2006. Service charges on deposit accounts increased $395 thousand, or 15.13%. Other service charges, commissions, and fees increased $152 thousand, or 20.27%. Other operating income was up 3.04% at $1.15 million for third quarter 2007 compared with $1.12 million for 2006.

• Total non-interest expenses increased $623 thousand, or 5.10%, from third quarter 2006. Salaries and benefits increased $393 thousand, or 6.39%. Much of the increase is attributed to compensation expense at Investment Planning Consultants, Inc. and FAS 91 salaries and benefits deferral differences. Other non-interest expenses increased $346 thousand, or 8.51%, compared to the third quarter of 2006 mainly because of $170 thousand of increased legal expenses and $138 thousand of new account promotion expenses. The third quarter efficiency ratio was 52.14% compared to 49.44% in 2006, and still ranks among the strongest in the industry.

• Credit quality remains very sound with total delinquencies as a percent of total loans at 0.84% at September 30, 2007, compared with 0.67% and 0.91% at September 30 and December 31, 2006, respectively. The ratio of allowance for loan losses as a percent of loans held for investment was 1.06% compared with 1.15% and 1.13% at September 30 and December 31, 2006, respectively. Non-performing assets declined to $3.08 million from $4.41 million and $4.07 million at September 30 and December 31, 2006, respectively.

-2-

• Non-performing assets as a percentage of loans held for investment and other real estate were 0.25% compared with 0.34% and 0.32% at September 30 and December 31, 2006, respectively. The Company holds no non-traditional mortgage products in its loan portfolio.

• Net charge-offs were $744 thousand compared to $343 thousand in the third quarter of 2006. The Company made no provision for loan losses in the third quarter of 2007 compared with $579 thousand in the third quarter of 2006.

• On a same-branch basis, average deposits have increased $42.31 million compared to the third quarter of 2006. During 2006, the Company sold two branches with third quarter 2006 average deposits totaling $10.71 million.

• During the third quarter, the Company repurchased approximately 108,300 shares of treasury stock.

• Today, the board of directors declared a fourth quarter dividend to stockholders of twenty-seven cents ($0.27) per share, for a full year dividend of $1.08. The fourth quarter dividend is payable to shareholders of record November 30, 2007, and expected to be paid on December 14, 2007. Today’s dividend declaration makes 2007 the 16^th consecutive year of dividend increases to shareholder. Dividends have increased at an average annual rate of over 10% since 1991.

Year-to-Date 2007

• Interest income was $95.40 million, an improvement of $6.21 million, or 6.96%, over the prior year. The increase was due primarily to increases in average earning assets.

• Year-to-date net interest income was down from the prior year due to increases in interest expense. Year-to-date interest expense increased by $9.03 million, or 25.67%, from 2006. Tax equivalent net interest margin was 3.81%.

• Wealth management revenues increased $893 thousand, or 43.82%, compared to the first three quarters of 2006. Service charges on deposit accounts increased $394 thousand, or 5.13%. Other service charges and commissions increased $408 thousand, or 18.54%, compared to the first nine months of 2006. Other operating income was $828 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 $1.07 million, or 2.79%, from the first three quarters of 2006. Salaries and benefits decreased $1.71 million, or 8.23%, from 2006. The year-to-date efficiency ratio was 51.18% compared with 52.07% in 2006.

• Since year-end 2006, consolidated assets have increased $140.95 million, a 9.27% annualized growth rate, to $2.17 billion compared to $2.03 billion.

• Total stockholders’ equity for the Company was $217.16 million, resulting in a book value per common share outstanding of $19.43 compared to $212.73 million and $18.92 per common share at December 31, 2006, and $205.78 million and $18.40 per common share a year ago.

The Company will host an investor and media teleconference and webcast on Thursday, October 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 third 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 David D. Brown, Chief Financial Officer, at (800) 425-0839.

-3-

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-two 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 $844 million at September 30, 2007. 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 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.

-4-

First Community Bancshares, Inc.
Consolidated Statements of Income

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In Thousands, Except Share and Per Share Data)(Unaudited)	2007			2006			2007			2006
Interest Income
Interest and fees on loans held for investment	$	23,478		$	24,578		$	70,401		$	73,009
Interest on securities-taxable		6,772			3,497			17,783			9,598
Interest on securities-nontaxable		2,078			1,877			6,140			5,519
Interest on federal funds sold and deposits		404			288			1,073			1,062
Total interest income		32,732			30,240			95,397			89,188
Interest Expense
Interest on deposits		10,083			8,760			29,131			24,733
Interest on borrowings		5,506			3,724			15,094			10,461
Total interest expense		15,589			12,484			44,225			35,194
Net interest income		17,143			17,756			51,172			53,994
Provision for loan losses		—			579			—			1,798
Net interest income after provision for loan losses		17,143			17,177			51,172			52,196
Non-Interest Income
Wealth management income		908			623			2,931			2,038
Service charges on deposit accounts		3,006			2,611			8,077			7,683
Other service charges, commissions and fees		902			750			2,609			2,201
Gain (loss) on sale of securities		50			(6	)		209			60
Other operating income		1,154			1,120			2,956			3,784
Total non-interest income		6,020			5,098			16,782			15,766
Non-Interest Expense
Salaries and employee benefits		6,544			6,151			19,120			20,834
Occupancy expense of bank premises		933			1,039			3,010			3,090
Furniture and equipment expense		844			871			2,447			2,579
Amortization of intangible assets		105			88			313			322
Other operating expense		4,410			4,064			12,179			11,309
Total non-interest expense		12,836			12,213			37,069			38,134
Income before income taxes		10,327			10,062			30,885			29,828
Income tax expense		3,011			2,877			9,006			8,507
Net income	$	7,316		$	7,185		$	21,879		$	21,321
Basic earnings per common share (EPS)	$	0.65		$	0.64		$	1.95		$	1.90
Diluted earnings per common share (DEPS)	$	0.65		$	0.64		$	1.94		$	1.89
Weighted Average Shares Outstanding:
Basic		11,179,322			11,174,479			11,232,895			11,269,515
Diluted		11,230,220			11,245,073			11,299,727			11,342,233
For the period:
Return on average assets		1.34	%		1.45	%		1.38	%		1.45	%
Return on average equity		13.31	%		14.05	%		13.40	%		14.29	%
Return on average tangible equity		18.86	%		20.29	%		18.97	%		20.85	%
Cash dividends per share	$	0.27		$	0.26		$	0.81		$	0.78
At period end:
Book value per share							$	19.43		$	18.40
Market value							$	36.23		$	33.37

-5-

First Community Bancshares, Inc.
Quarterly Performance Summary
Income Statements

	As of and for the Quarter Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
(In Thousands, Except Share and Per Share Data)(Unaudited)	2007		2007		2007		2006		2006
Interest Income
Interest and fees on loans held for investment	$	23,478	$	23,404	$	23,519	$	24,451	$	24,578
Interest on securities-taxable		6,772		6,030		4,981		4,353		3,497
Interest on securities-nontaxable		2,078		2,150		1,912		1,852		1,877
Interest on federal funds sold and deposits		404		395		274		182		288
Total interest income		32,732		31,979		30,686		30,838		30,240
Interest Expense
Interest on deposits		10,083		9,748		9,300		9,135		8,760
Interest on borrowings		5,506		5,217		4,371		4,052		3,724
Total interest expense		15,589		14,965		13,671		13,187		12,484
Net interest income		17,143		17,014		17,015		17,651		17,756
Provision for loan losses		—		—		—		908		579
Net interest income after provision for loan losses		17,143		17,014		17,015		16,743		17,177
Non-Int Income
Wealth management income		908		1,005		1,018		773		623
Service charges on deposit accounts		3,006		2,662		2,409		2,559		2,611
Other service charges, commissions and fees		902		837		870		791		750
Gain (loss) on sale of securities		50		30		129		15		(6	)
Other operating income		1,154		1,013		789		1,419		1,120
Total non-interest income		6,020		5,547		5,215		5,557		5,098
Non-Int Expense
Salaries and employee benefits		6,544		6,165		6,411		6,033		6,151
Occupancy expense of bank premises		933		1,020		1,057		978		1,039
Furniture and equipment expense		844		780		823		887		871
Amortization of intangible assets		105		105		103		88		88
Other operating expense		4,410		4,005		3,764		3,717		4,064
Total non-interest expense		12,836		12,075		12,158		11,703		12,213
Income before income taxes		10,327		10,486		10,072		10,597		10,062
Income tax expense		3,011		3,047		2,948		2,970		2,877
Net income	$	7,316	$	7,439	$	7,124	$	7,627	$	7,185
Per Share
Basic EPS	$	0.65	$	0.66	$	0.63	$	0.68	$	0.64
Diluted EPS	$	0.65	$	0.66	$	0.63	$	0.68	$	0.64
Cash dividends per share	$	0.27	$	0.27	$	0.27	$	0.26	$	0.26
Weighted Average Shares Outstanding:
Basic		11,179,322		11,260,868		11,259,375		11,211,535		11,174,479
Diluted		11,230,220		11,320,227		11,346,828		11,297,931		11,245,073
Actual shares oustanding at period end		11,175,550		11,232,466		11,271,302		11,245,742		11,183,668
Book Value per share at period end	$	19.43	$	19.25	$	19.33	$	18.92	$	18.40
Market Value per share at period end	$	36.23	$	31.19	$	39.00	$	39.56	$	33.37

-6-

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

	September 30,			June 30,			March 31,			December 31,			September 30,
	2007			2007			2007			2006			2006
(In Thousands)
Cash and due from banks	$	39,877		$	40,879		$	42,394		$	47,909		$	38,961
Interest-bearing deposits with banks		19,427			33,380			17,082			9,850			13,473
Securities available for sale		671,360			658,901			612,977			508,370			475,528
Securities held to maturity		12,548			13,177			19,266			20,019			20,250
Loans held for sale		2,294			1,818			1,068			781			1,046
Loans held for investment, net of unearned income		1,239,207			1,243,076			1,258,847			1,284,863			1,299,220
Less allowance for loan losses		13,190			13,934			14,510			14,549			14,946
Net loans		1,226,017			1,229,142			1,244,337			1,270,314			1,284,274
Premises and equipment		46,702			42,274			38,381			36,889			35,879
Other real estate owned		211			593			600			258			753
Interest receivable		13,289			12,892			11,835			12,141			11,435
Intangible assets		69,104			62,017			62,092			62,196			60,796
Other assets		73,817			73,522			65,763			64,971			65,174
Total Assets	$	2,174,646		$	2,168,595		$	2,115,795		$	2,033,698		$	2,007,569
Deposits:
Demand	$	224,297		$	241,423		$	242,254		$	244,771		$	245,097
Interest-bearing demand		143,719			143,080			148,735			140,578			145,519
Savings		348,457			333,855			325,454			317,678			327,120
Time		686,564			703,602			703,141			691,744			678,490
Total Deposits		1,403,037			1,421,960			1,419,584			1,394,771			1,396,226
Interest, taxes and other liabilities		20,120			21,000			20,522			19,641			19,223
Federal funds purchased		15,600			—			45,000			7,700			15,500
Securities sold under agreements to repurchase		226,784			217,987			220,198			201,185			172,711
FHLB and other indebtedness		291,942			291,387			192,654			197,671			198,127
Total Liabilities		1,957,483			1,952,334			1,897,958			1,820,968			1,801,787
Common stock, $1 par value		11,499			11,499			11,499			11,499			11,499
Additional paid-in capital		108,794			108,633			108,769			108,806			108,605
Retained earnings		112,911			108,601			104,198			100,117			95,414
Treasury stock, at cost		(10,051	)		(8,341	)		(7,124	)		(7,924	)		(9,866	)
Accumulated other comprehensive income (loss)		(5,990	)		(4,131	)		495			232			130
Total Stockholders’ Equity		217,163			216,261			217,837			212,730			205,782
Total Liabilities and Stockholders’ Equity	$	2,174,646		$	2,168,595		$	2,115,795		$	2,033,698		$	2,007,569

-7-

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

	As of and for the Quarter Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2007			2007			2007			2006			2006
	(Dollars in Thousands)
Ratios
Return on average assets		1.34	%		1.40	%		1.42	%		1.51	%		1.45	%
Return on average equity		13.31	%		13.56	%		13.33	%		14.41	%		14.05	%
Return on average tangible equity		18.86	%		19.12	%		18.92	%		20.57	%		20.29	%
Net interest margin		3.70	%		3.78	%		3.98	%		4.09	%		4.20	%
Efficiency ratio for the quarter (a)		52.14	%		50.25	%		51.13	%		48.02	%		49.44	%
Efficiency ratio year-to-date (a)		51.18	%		50.69	%		51.13	%		51.05	%		52.07	%
Equity as a percent of total assets at end of period		9.99	%		9.97	%		10.30	%		10.46	%		10.25	%
Average earning assets as a percentage of average total assets		90.23	%		90.47	%		90.39	%		90.32	%		90.06	%
Average loans as a percentage of average deposits		87.91	%		88.82	%		90.90	%		92.97	%		93.52	%
						��
Average Balances
Investments	$	678,790		$	645,266		$	552,383		$	501,042		$	443,680
Loans		1,246,530			1,253,679			1,265,628			1,296,754			1,305,839
Earning assets		1,958,858			1,931,247			1,841,235			1,812,181			1,774,277
Total assets		2,171,036			2,134,612			2,037,006			2,006,377			1,970,003
Deposits		1,417,922			1,411,476			1,392,309			1,394,881			1,396,271
Interest-bearing deposits		1,188,470			1,176,940			1,162,735			1,156,582			1,155,743
Borrowings		515,775			484,410			408,726			381,845			351,909
Interest-bearing liabilities		1,704,245			1,661,350			1,571,461			1,541,702			1,510,816
Equity		218,049			219,989			216,807			209,985			202,922
Tax equivalent net interest income		18,281			18,186			18,057			18,660			18,775

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

-8-

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

	As of and for the Quarter Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2007			2007			2007			2006			2006
	(Dollars in Thousands)
Summary of Loan Loss Experience
Allowance for Loan Losses:
Beginning balance	$	13,934		$	14,510		$	14,549		$	14,946		$	14,710
Provision for Loan Losses		—			—			—			908			579
Charge-offs		(1,009	)		(911	)		(893	)		(1,607	)		(832	)
Recoveries		265			335			854			302			489
Net charge-offs		(744	)		(576	)		(39	)		(1,305	)		(343	)
Ending balance	$	13,190		$	13,934		$	14,510		$	14,549		$	14,946
Summary of Asset Quality
Nonaccrual loans	$	2,869		$	2,910		$	4,074		$	3,813		$	3,657
Loans 90 days or more past due and still accruing		—			—			—			—			—
Total non-performing loans		2,869			2,910			4,074			3,813			3,657
Other real estate owned		211			593			600			258			753
Total non-performing assets	$	3,080		$	3,503		$	4,674		$	4,071		$	4,410
Restructured loans	$	253		$	256		$	265		$	272		$	281
Asset Quality Ratios
Non-performing loans as a percentage of loans held for investment		0.23	%		0.23	%		0.32	%		0.30	%		0.28	%
Non-performing assets as a percentage of:
Total assets		0.14	%		0.16	%		0.22	%		0.20	%		0.22	%
Loans held for investment plus other real estate owned		0.25	%		0.28	%		0.37	%		0.32	%		0.34	%
Annualized net charge-offs as a percentage of average loans held for investment		0.24	%		0.18	%		0.01	%		0.40	%		0.10	%
Allowance for loan losses as a percentage of loans held for investment		1.06	%		1.12	%		1.15	%		1.13	%		1.15	%
Ratio of allowance for loan losses to nonaccrual loans		4.60			4.79			3.56			3.82			4.09

-9-

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

	Three Months Ended September 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	$	1,243,913	$	23,448		7.48	%	$	1,304,500	$	24,562		7.47	%
Tax Exempt		2,617		49		7.43	%		1,339		24		7.11	%
Total		1,246,530		23,497		7.48	%		1,305,839		24,586		7.47	%
Securities Available for Sale
Taxable		480,767		6,766		5.58	%		269,061		3,490		5.15	%
Tax Exempt		185,432		2,949		6.31	%		154,221		2,482		6.39	%
Total		666,199		9,715		5.79	%		423,282		5,972		5.60	%
Held to Maturity Securities
Taxable		377		6		6.31	%		385		6		6.18	%
Tax Exempt		12,214		248		8.06	%		20,013		406		8.05	%
Total		12,591		254		8.00	%		20,398		412		8.01	%
Interest-bearing Deposits with Banks		33,538		404		4.78	%		24,758		289		4.63	%
Total Earning Assets		1,958,858	$	33,870		6.86	%		1,774,277	$	31,259		6.99	%
Other Assets		212,178							195,726
Total	$	2,171,036						$	1,970,003
Interest-bearing Liabilities
Interest-bearing Demand Deposits	$	145,324	$	119		0.32	%	$	144,034	$	120		0.33	%
Savings Deposits		344,866		2,088		2.40	%		336,611		1,773		2.09	%
Time Deposits		698,280		7,876		4.47	%		675,098		6,867		4.04	%
Fed Funds Purchased & Repurchase Agreements		224,381		2,082		3.68	%		151,813		1,276		3.33	%
FHLB Borrowings & Other Long-term Debt		291,394		3,424		4.66	%		200,096		2,448		4.85	%
Total Interest-bearing Liabilities		1,704,245		15,589		3.63	%		1,507,652		12,484		3.29	%
Noninterest-bearing Demand Deposits		229,452							240,528
Other Liabilities		19,290							18,901
Stockholders’ Equity		218,049							202,922
Total	$	2,171,036						$	1,970,003
Net Interest Income			$	18,281						$	18,775
Net Interest Rate Spread (3)						3.23	%						3.70	%
Net Interest Margin (4)						3.70	%						4.20	%

(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.

-10-

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

	Nine Months Ended September 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	$	1,253,069	$	70,325		7.50	%	$	1,321,656	$	72,953		7.38	%
Tax Exempt		2,140		120		7.50	%		1,466		85		7.75	%
Total		1,255,209		70,445		7.50	%		1,323,122		73,038		7.38	%
Securities Available for Sale
Taxable		430,792		17,765		5.51	%		259,540		9,581		4.94	%
Tax Exempt		178,980		8,502		6.35	%		151,417		7,208		6.36	%
Total		609,772		26,267		5.76	%		410,957		16,789		5.46	%
Held to Maturity Securities
Taxable		379		18		6.35	%		388		17		5.86	%
Tax Exempt		15,792		947		8.02	%		21,289		1,283		8.06	%
Total		16,171		965		7.98	%		21,677		1,300		8.02	%
Interest-bearing Deposits with Banks		29,726		1,073		4.83	%		31,637		1,063		4.49	%
Total Earning Assets		1,910,878	$	98,750		6.91	%		1,787,393	$	92,190		6.90	%
Other Assets		203,831							184,092
Total	$	2,114,709						$	1,971,485
Interest-bearing Liabilities
Interest-bearing Demand Deposits	$	146,283	$	349		0.32	%	$	146,325	$	338		0.31	%
Savings Deposits		329,854		5,537		2.24	%		350,662		5,166		1.97	%
Time Deposits		700,006		23,245		4.44	%		678,178		19,229		3.79	%
Fed Funds Purchased & Repurchase Agreements		222,600		6,322		3.80	%		139,716		3,378		3.23	%
FHLB Borrowings & Other Long-term Debt		247,429		8,772		4.74	%		201,437		7,083		4.70	%
Total Interest-bearing Liabilities		1,646,172		44,225		3.59	%		1,516,318		35,194		3.10	%
Noninterest-bearing Demand Deposits		231,187							237,517
Other Liabilities		19,064							18,175
Stockholders’ Equity		218,286							199,475
Total	$	2,114,709						$	1,971,485
Net Interest Income			$	54,525						$	56,996
Net Interest Rate Spread (3)						3.32	%						3.80	%
Net Interest Margin (4)						3.81	%						4.26	%

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

-11-