FIRST COMMUNITY BANKSHARES INC /VA/ Debt Disclosure
Note 10. Borrowings
The following table presents the components of borrowings as of the dates indicated:
| December 31, | ||||||||||||||||
| 2025 | 2024 | |||||||||||||||
| (Amounts in thousands) | Balance | Weighted Average Rate | Balance | Weighted Average Rate | ||||||||||||
| Retail repurchase agreements | $ | 1,214 | 0.06 | % | $ | 906 | 0.05 | % | ||||||||
Repurchase agreements are secured by certain securities that remain under the Company’s control during the terms of the agreements. The counterparties may redeem callable repurchase agreements, which could substantially shorten the borrowings’ lives. The prepayment or early termination of a repurchase agreement may result in substantial penalties based on market conditions. The following schedule presents the contractual maturities of repurchase agreements, by type of collateral pledged, as of December 31, 2025:
| Overnight and Continuous | Up to 30 Days | 30 - 90 Days | Greater than 90 Days | Total | ||||||||||||||||
| (Amounts in thousands) | ||||||||||||||||||||
| Municipal securities | $ | 137 | $ | - | $ | - | $ | - | $ | 137 | ||||||||||
| Mortgage-backed Agency securities | 1,077 | - | - | - | 1,077 | |||||||||||||||
| Total | $ | 1,214 | $ | - | $ | - | $ | - | $ | 1,214 | ||||||||||
As of December 31, 2025, unused borrowing capacity with the FHLB totaled $301.81 million, net of FHLB letters of credit of $124 million. The Company pledged $425.81 million in qualifying loans to secure the FHLB letters of credit, which provide an attractive alternative to pledging securities for public unit deposits.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Mar 7, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Mar 3, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 13, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 5, 2018 | |
| 2016 | Mar 3, 2017 | |
| 2015 | Mar 4, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.