FCBC

MKT CAP $914.1MP/E 15.2DIV YIELD 2.57%FCF YIELD 4.73%REV TTM —NET INCOME $59.3M +18.2%NET CASH $241.6M52W 31.42 – 49.62SEC XBRL · TTM TO Invalid Date

How FCBC rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

Text kept

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Length

+611

words, now 6,443

New in FY2025

Economic conditions in the Company's market footprint, including West Virginia, Virginia, North Carolina and Tennessee, as well as in the broader U.S. economy, may be slow or uneven and are subject to significant uncertainty.
Adverse changes in economic conditions, including inflationary pressures, fluctuations in interest rates, energy price volatility, changes in fiscal and monetary policy, or weakened consumer and business confidence, could negatively affect consumer and business spending, borrowing, and repayment capacity.
Such conditions could result in reduced demand for loans and other financial services, deterioration in credit quality, declines in collateral values, and increased delinquencies and charge-offs.
There can be no assurance that economic conditions will strengthen or remain stable, and any deterioration could materially and adversely affect the Company's business, financial condition, and results of operations.
Changes in the fair value of our investment securities may reduce stockholders’ equity.
As of December 31, 2025, commercial business and real estate loans totaled $1.53 billion, or 66.26%, of our total loan portfolio.
As of the same date, our largest outstanding commercial business loan was $15.30 million and largest outstanding commercial real estate loan was $12.30 million.
As of December 31, 2025, commercial construction loans totaled $63.90 million, or 2.76% our total loan portfolio.
As of the same date, our largest outstanding commercial construction loan was $19.90 million.
As of December 31, 2025, approximately 19.54% of our deposits were uninsured and we rely on these deposits for liquidity.
Increasing fraud risk could adversely affect our business, financial condition, and reputation.
The Company, the Bank and its customers are exposed to an increasing risk of fraud, including cyber fraud, identity theft, account takeover, and other fraudulent activities.
The sophistication and frequency of these schemes continue to grow, driven by advances in technology and the proliferation of digital banking channels.
Fraudulent activity can result in financial losses for us or our customers, increased operational costs, and potential legal exposure.
Although the Company has enhanced security measures, including authentication protocols, transaction monitoring, and fraud detection systems, these controls may not be sufficient to prevent all fraudulent activity.
Criminals continuously adapt their methods to circumvent existing safeguards, and emerging technologies such as artificial intelligence may further enhance their ability to perpetrate fraud.
Significant fraud-related losses could negatively impact our earnings, capital, and liquidity.
In addition, fraud incidents may harm our reputation, erode customer trust, and lead to regulatory scrutiny or enforcement actions.
Failure to effectively manage and mitigate fraud risk could have a material adverse effect on our business, financial condition, and results of operations.
We may face new operational, compliance, reputational and legal risks due to the development and use of artificial intelligence.
The Company, the Bank and many of its third-party services providers currently use and may increasingly develop or incorporate artificial intelligence ("AI") technology in our operations, processes, products, or services.
The development and use of AI present a number of opportunities for the Company, as we as risks that are difficult to predict and may evolve rapidly.
AI could significantly disrupt the business models, investment strategies, operational processes, and markets in which we operate and subject us to increased competition, which could have a material adverse effect on our business, financial condition and results of operations.
Some of our competitors may be more successful than us in the development and implementation of new technologies, including services and platforms based on AI, to address investor demands or improve operations.
If we are unable to adequately advance our capabilities in these areas or do so at a slower pace than others in our industry, we may be at a disadvantage.
The use of AI may also include the input of sensitive personal information, trade secrets, and other protected data by both us and third parties and could result in the exposure of such information.
Regulatory expectations, supervisory guidance and legal standards related to AI and emerging technologies are evolving and may vary across jurisdictions.
New or changing laws, regulations or supervisory interpretations could require us to modify or limit its use of AI technologies, increase compliance and governance costs, or subject the Company to additional examination, reporting, or liability risks.
In addition, public perception of AI use, including concerns regarding transparency, fairness, data usage and accountability, could results in reputational harm if our use of such technologies is perceived negatively.
In addition, technology and other changes have made it possible for non-banks to offer products and services traditionally provided by banks.
In particular, the activity of fintechs/wealthtechs has grown significantly over recent years and is expected to continue to grow.
Some fintechs/wealthtechs are not subject to the same regulation as we are, which may allow them to be more competitive.
Fintechs/wealthtechs have and may continue to offer bank or bank-like products and a number of such organizations have applied for bank or industrial loan charters while others have partnered with existing banks to allow them to offer deposit products to their customers.
Increased competition from fintechs/wealthtechs and the growth of digital banking may also lead to pricing pressures as competitors offer more low-fee and no-fee products.
General market fluctuations; industry factors; political conditions; and general economic conditions and events, such as economic slowdowns, changes in trade policy, recessions, interest rate changes, or credit loss trends, could also cause our common stock price to decrease regardless of operating results.

Gone since FY2024

In recent years, economic growth and business activity across a wide range of industries has been slow and uneven.
There are continuing concerns related to the level of U.S. government debt, fiscal actions that may be taken to address that debt, energy price volatility, global economic conditions, and significant uncertainty with respect to domestic and international fiscal and monetary policy.
Economic and inflationary pressure on consumers and uncertainty about continuing economic improvement may result in changes in consumer and business spending, borrowing, and savings habits.
There can be no assurance that these conditions will improve or that these conditions will not worsen.
Such conditions could adversely affect the credit quality of the Bank’s loans and the Company’s business, financial condition, and results of operations.
Changes in the fair value of our investment securities may reduce stockholders’ equity and net income.
As of December 31, 2024, commercial business and real estate loans totaled $1.58 billion, or 65.46%, of our total loan portfolio.
As of the same date, our largest outstanding commercial business loan was $15.74 million and largest outstanding commercial real estate loan was $12.71 million.
As of December 31, 2024, commercial construction loans totaled $72.32 million, or 2.99% our total loan portfolio.
As of the same date, our largest outstanding commercial construction loan was $20.42 million.
As of December 31, 2024, approximately 19.52% of our deposits were uninsured and we rely on these deposits for liquidity.
General market fluctuations; industry factors; political conditions; and general economic conditions and events, such as economic slowdowns, recessions, interest rate changes, or credit loss trends, could also cause our common stock price to decrease regardless of operating results.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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