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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549





FORM 10-K







|x | Annual Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
|- | -------------------------------------------------------------------------------------

For the fiscal year ended December 31, 2010

OR



| ̈ | Transition Report Pursuant to Section 13 or 15 (d) or the Securities Exchange Act of 1934
|- | -----------------------------------------------------------------------------------------

For the transition period from  to

Commission file number: 0-11671





FIRST CENTURY BANKSHARES, INC.

(Exact name of registrant as specified in its charter)



|                                                               |  |                                  
|-------------------------------------------------------------- |  | ---------------------------------
|West Virginia                                                  |  | 55-0628089                       
|(State or other jurisdiction of
incorporation or organization) |  | (IRS Employer Identification No.)
|                                                               | 
|500 Federal Street, Bluefield, WV                              |  | 24701                            
|(Address of principal executive offices)                       |  | (Zip Code)                       

Registrants telephone number, including area code: (304) 325-8181

Securities registered pursuant to Section 12(b) of the Act:



|                    |  |                                          
|------------------- |  | -----------------------------------------
|Title of each class |  | Name of each exchange on which registered
|NONE                |  | NONE                                     

Securities registered pursuant to Section 12(g) of the Act:

First Century Bankshares, Inc.: $1.25 Par Value - Common Stock

(Title of class)





Indicate by check mark if the
registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act.    Yes   ̈    No  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes   ̈    No  x

Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No   ̈

Indicate by check mark whether the registrant has submitted electronically and posted on its
corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was
required to submit and post such files).    Yes   ̈    No   ̈

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See definitions of large accelerated filer, accelerated filer, and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check one):



|                        |  |                                                  |  |                           |  |  
|----------------------- |  | ------------------------------------------------ |  | ------------------------- |  | -
|Large accelerated filer |  |  ̈                                                |  | Accelerated filer         |  |  ̈
|                        |  |                                                  | 
|Non-accelerated filer   |  |  ̈  (Do not check if a smaller reporting company) |  | Smaller reporting company |  | x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes   ̈    No  x

The
aggregate market value of the voting and nonvoting common equity held by non-affiliates of the registrant as of June 30, 2010 (computed based on the price at which the common equity was last sold) was $18,387,045.

The number of shares outstanding of the registrants common stock as of March 23, 2011, was 1,903,120.





DOCUMENTS INCORPORATED BY REFERENCE

Portions of the annual shareholders report for the fiscal year ended December 31, 2010, are incorporated by reference into Part II.

Portions of the proxy statement for the annual shareholders meeting to be held April 26, 2011 are incorporated by reference into Part III.









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FIRST CENTURY BANKSHARES, INC.

2010 FORM 10-K ANNUAL REPORT

TABLE OF CONTENTS



|         |  |                                                                                                              |  |  |         | 
|-------- |  | ------------------------------------------------------------------------------------------------------------ |  |  | ------- | 
|         |  | PART I                                                                                                       |  |  |         | 
|         |  |                                                                                                             
|Item 1.  |  | Business                                                                                                     |  |  | 1       | 
|Item 1A. |  | Risk Factors                                                                                                 |  |  | 7       | 
|Item 1B. |  | Unresolved Staff Comments                                                                                    |  |  | 7       | 
|Item 2.  |  | Properties                                                                                                   |  |  | 7       | 
|Item 3.  |  | Legal Proceedings                                                                                            |  |  | 8       | 
|Item 4.  |  | (Removed and Reserved)                                                                                       |  |  | 8       | 
|         |  |                                                                                                             
|         |  | PART II                                                                                                      |  |  |         | 
|         |  |                                                                                                             
|Item 5.  |  | Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |  |  | 9       | 
|Item 6.  |  | Selected Financial Data                                                                                      |  |  | 9       | 
|Item 7.  |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                        |  |  | 9       | 
|Item 7A. |  | Quantitative and Qualitative Disclosures About Market Risk                                                   |  |  | 10      | 
|Item 8.  |  | Financial Statements and Supplementary Data                                                                  |  |  | 10      | 
|Item 9.  |  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                         |  |  | 10      | 
|Item 9A. |  | Controls and Procedures                                                                                      |  |  | 10      | 
|Item 9B. |  | Other Information                                                                                            |  |  | 11      | 
|         |  |                                                                                                             
|         |  | PART III                                                                                                     |  |  |         | 
|         |  |                                                                                                             
|Item 10. |  | Directors, Executive Officers and Corporate Governance                                                       |  |  | 12      | 
|Item 11. |  | Executive Compensation                                                                                       |  |  | 12      | 
|Item 12. |  | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters               |  |  | 12      | 
|Item 13. |  | Certain Relationships and Related Transactions, and Director Independence                                    |  |  | 12      | 
|Item 14. |  | Principal Accounting Fees and Services                                                                       |  |  | 13      | 
|         |  |                                                                                                             
|         |  | PART IV                                                                                                      |  |  |         | 
|         |  |                                                                                                             
|Item 15. |  | Exhibits, Financial Statement Schedules                                                                      |  |  | 14 - 15 | 
|         |  | Signatures                                                                                                   |  |  | 16 - 17 | 



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PART I

ITEM 1. BUSINESS

FIRST CENTURY BANKSHARES, INC.

First Century Bankshares, Inc. (Corporation, Company or Registrant), formerly Pocahontas
Bankshares Corporation, was organized under the laws of West Virginia in 1983 at the direction of the Board of Directors of The First National Bank of Bluefield (Bluefield). On March 1, 1984, the effective date of the corporate
reorganization, the shareholders of Bluefield became the shareholders of the Corporation, and Bluefield became a wholly-owned subsidiary of the Corporation. On March 11, 1988, the Registrant acquired control of the Bank of Oceana, Oceana, WV
(Oceana). On May 24, 1991, the Registrant formed First Century Bank, Roanoke, Virginia. During 1993, the main office of First Century Bank was redesignated to Wytheville, Virginia. Effective November 28, 1994, the merger of
Bank of Oceana into The First National Bank of Bluefield was completed and the name of the resulting entity was changed to First Century Bank, National Association (FCBNA), with its main office in Bluefield, West Virginia. Effective
May 7, 1999, First Century Bank was merged into FCBNA.

During 2001, the Corporation formed a financial subsidiary, First
Century Financial Services, LLC, (FCFSLLC). This entity conducts the Corporations insurance activities through its investment in the Bankers Insurance Corporation, a relationship among several community banks, which offers a
full range of insurance products and services. Effective December 31, 2009, FCFSLLC resigned from Bankers Insurance Corporation and ceased conducting insurance activities with that company. This entity was formed with a minimal capital
investment which is carried at cost and eliminates upon consolidation.

Substantially all of the operations of the Corporation
are carried on through FCBNA which is the Registrants only banking subsidiary. The officers and directors of the Corporation, who are also officers and directors of FCBNA, receive their entire compensation from FCBNA. The Corporations
executive offices are located at 500 Federal Street, Bluefield, West Virginia.

The Registrants principal business and
major source of revenue is, and is expected to remain, commercial banking. The Registrant currently derives substantially all its revenues from dividends paid by FCBNA. The earnings, asset growth and current capital position of the subsidiary
influence dividend payments by FCBNA. In addition, various regulatory agencies control the payment of dividends. For additional information regarding the payment of dividends, see Note 13 of the Notes to the Consolidated Financial Statements in the
Registrants 2010 Annual Report to the Stockholders attached as Exhibit 13 to this report.

FIRST CENTURY BANK, N.A.

First Century Bank, N.A., a national banking association, was organized and chartered in 1891 as The First National Bank of Bluefield,
under the laws of the State of West Virginia and the National Bank Act. FCBNA offers customary banking services, including commercial, real estate, installment, and other loans; interest-bearing and non-interest bearing transaction accounts, savings
and time deposit accounts including certificates and other deposit accounts, featuring various maturities and market rates; Individual Retirement Accounts; Visa and MasterCard services under an arrangement with a correspondent bank; safe deposit
facilities; personal and corporate trust services; and various cash management services along with a full range of electronic banking products and services.

In addition to the main office, FCBNA currently operates eleven additional branches in Mercer, Raleigh, Summers and Wyoming counties in southern West Virginia and Tazewell and Wythe Counties in
southwestern Virginia. As of December 31, 2010, FCBNA had 146 full-time employees and 11



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part- time employees. FCBNA is not a party to any collective bargaining agreements, and, in the opinion of management, enjoys satisfactory relations with its employees.

COMPETITION

Vigorous and
intense competition exists in all areas where the Registrant and its subsidiaries are engaged in business, generally from other banks located in southern West Virginia and southwestern Virginia. However, this competition is not only limited to other
commercial banks. The subsidiaries also compete for certain lines of business with savings and loan associations, mortgage companies, credit unions, consumer finance companies, leasing companies, insurance companies, mutual funds and brokerage
firms. Significant competition also exists from state-wide and nation-wide bank holding companies located in West Virginia and Virginia, which have offices in the communities the Registrant serves. These institutions are larger in terms of capital,
resources and personnel. This requires that the Registrant place a high emphasis on quality service, with a significant amount of personal attention, in order to effectively compete with these larger institutions. Management feels that this
competitive environment will continue in the markets in which the Registrant currently operates.

FUTURE ACQUISITIONS AND EXPANSION

The Registrant may, from time to time, consider expansion of its banking operations through acquisition of or formation of
other banks and/or bank related businesses. In addition to traditional banking products and services, with the passage of the Graham-Leach-Bliley Financial Modernization Act, the Registrant will evaluate the potential of offering new financial
services allowed under the Act. The Registrants current strategic plan also calls for continued evaluation of expansion through de novo branching into new markets beyond the existing service area.

SUPERVISION AND REGULATION

The
Corporation is under the jurisdiction of the United States Securities and Exchange Commission and the State of West Virginias Secretary of State with respect to matters relating to the offer and sale of its securities and matters relating to
financial reporting and disclosure to these regulators and to the Corporations shareholders. The business in which the Corporation and its subsidiaries are engaged is subject to extensive supervision, regulation and examination by various bank
regulatory authorities and other governmental agencies in the states where the Corporation and its subsidiaries operate. The supervision, regulation and examination to which the Corporation and its subsidiaries are subject are intended primarily for
the protection of depositors or are aimed at carrying out broad public policy goals, rather than for the protection of security holders.

Several of the more significant regulatory provisions applicable to the Corporation and its subsidiaries are discussed below. To the extent that the following information describes statutory or regulatory
provisions, it is qualified in its entirety by reference to the particular statutory provisions. Any change in applicable law or regulation may have a material effect on the business and prospects of the Corporation and its subsidiaries.

The Corporation is a financial holding company under the Bank Holding Company Act of 1956, as amended (BHCA), and is
regulated by the Federal Reserve. As a financial holding company, the Corporation is required to file with the Federal Reserve an Annual Report and such additional information as the Federal Reserve may require pursuant to the Bank Holding Company
Act. The Federal Reserve may also conduct examinations of the Corporation and each subsidiary. The Bank Holding Company Act requires every financial holding company to obtain prior approval from the Federal Reserve before acquiring direct or
indirect ownership or control of more than five percent of the voting shares of any bank which is not already majority owned or controlled by that financial holding company.



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In addition to having the right to acquire ownership and control of other banks, the
Corporation is authorized to acquire ownership and control of non-banking companies, provided the activities of such companies are so closely related to banking or managing or controlling banks that the Federal Reserve considers such activities to
be proper to the operation and control of banks. Regulation Y, promulgated by the Federal Reserve, sets forth those activities which are regarded as closely related to banking or managing or controlling banks and thus are permissible activities for
financial holding companies, subject to the approval by the Federal Reserve in individual cases.

The BHCA permits the
Corporation to purchase or redeem its own securities. However, Regulation Y provides that prior notice must be given to the Federal Reserve if the gross consideration for such purchase or consideration, when aggregated with the net consideration
paid by the company for all such purchases or redemptions during the preceding 12 months is equal to 10 percent or more of the companys consolidated net worth. Prior notice is not required if (i) both before and immediately after the
redemption, the financial holding company is well-capitalized; (ii) the financial holding company is well-managed and (iii) the financial holding company is not the subject of any unresolved supervisory issues.

The BHCA further provides that the Federal Reserve will not approve any acquisition, merger or consolidation (i) which would result
in a monopoly, (ii) which would be in furtherance of any combination or conspiracy to monopolize or attempt to monopolize the business of banking in any part of the United States, (iii) the effect of which may be to substantially lessen
competition or to tend to create a monopoly in any section of the country or (iv) which in any other manner would be in restraint of trade, unless the anti-competitive effects of the proposed transaction are clearly outweighed by the public
interest in the probable effect of the transaction meeting the convenience and needs of the community to be served.

Subsidiary banks of a financial holding company are subject to certain restrictions imposed by the BHCA on any extension of credit to the
bank holding company or any of its subsidiaries, on investment in the stock or other securities thereof, and on the taking of such stock or securities for loans to any borrower. Further, under Section 106 of the 1970 amendments to the Bank
Holding Company Act and the regulations of the Federal Reserve, a financial holding company through its banking subsidiaries is prohibited from engaging in certain tie-in arrangements in connection with any extension of credit or provision of any
property or services. The Federal Reserve possesses cease and desist powers over financial holding companies and their non-bank subsidiaries if their actions are unsafe or unsound practices or violations of law.

The Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA), requires that a financial holding company
guarantee that any undercapitalized (as defined in the statute) insured depository institution subsidiary will comply with the terms of any capital restoration plan filed by such subsidiary with its appropriate federal banking agency up
to the lesser of (i) an amount equal to 5% of the institutions total assets at the time the institution became undercapitalized, or (ii) the amount that is necessary (or would be necessary) to bring the institution into compliance
with all applicable capital standards as of the time the institution fails to comply with such capital restoration plan.

On
August 2, 1995, the Federal Reserve and other banking agencies issued their final rule to implement the portion of Section 305 of FDICIA that requires the banking agencies to revise their risk-based capital standards to ensure that those
standards take adequate account of interest rate risk. This final rule amends the capital standards to specify that the banking agencies will include, in their evaluations of a banks capital adequacy, an assessment of the exposure to declines
in the economic value of the banks capital due to changes in interest rates.



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Failure to meet applicable capital guidelines could subject the financial holding company to
a variety of enforcement remedies available to the federal regulatory authorities, including limitations on the ability to pay dividends, the issuance by the regulatory authority of a capital directive to increase capital and termination of deposit
insurance by the FDIC, as well as to the measures described under FDICIA as applicable to undercapitalized institutions.

The
regulatory capital ratios of the Corporation and FCBNA as of December 31, 2010, are set forth in the table in Note 13 of the Notes to the Consolidated Financial Statements in the Registrants 2010 Annual Report to the Stockholders attached
hereto as Exhibit 13 to this report.

In November 1999, Congress passed the Gramm-Leach-Bliley Financial Services
Modernization Act (the GLB Act) which repealed two provisions of the Glass-Stegall Act that previously separated banking, insurance, and securities activities. The GLB Act created a new financial services structure, the financial holding
company, under the BHCA. Financial holding companies are able to engage in any activity that is deemed (i) financial in nature, (ii) incidental to any such financial activity, or (iii) complementary to any such financial activity and
does not pose a substantial risk to the safety or soundness of depository institutions or the financial system generally. The GLB Act specifies certain activities that are deemed to be financial in nature, including lending, exchanging,
transferring, investing for others, or safeguarding money or securities; underwriting and selling insurance; providing financial, investment, or economic advisory services; underwriting, dealing in or making a market in, securities; and any activity
currently permitted for bank holding companies by the Federal Reserve Board under Section 4(c)(8) of the BHCA. The GLB Act does not authorize banks or their affiliates to engage in commercial activities that are not financial in nature.

As a financial holding company doing business in Virginia and West Virginia, the Corporation is also subject to regulation by
the Virginia State Corporation Commission and the West Virginia Board of Banking and Financial Institutions and must submit annual reports to the Virginia Bureau of Financial Institutions and to the West Virginia Division of Banking. Under West
Virginia banking law, an acquisition or merger is not permitted if the resulting depository institution or its holding company, including any depository institutions affiliated therewith, would assume additional deposits to cause it to control
deposits in the State of West Virginia in excess of twenty five percent (25%) of such total amount of all deposits held by insured depository institutions in West Virginia. This limitation may be waived by the West Virginia Commissioner of
Banking for good cause shown.

On July 30, 2002, President Bush signed into law the Sarbanes-Oxley Act of 2002 (the
Act). The Act contains a number of provisions that dramatically change the reporting and corporate governance obligations of public companies and their directors and officers. The Act also created new and enhanced criminal and civil
liability provisions related to securities fraud. In order to comply with certain provisions of the Act, the Corporation has taken steps to enhance its controls over financial reporting and disclosures including, but not limited to, the formation of
a disclosure review committee that is utilized to evaluate the accuracy and completeness of the Corporations reporting to the U.S. Securities and Exchange Commission and to shareholders of the Corporation.

FCBNA operates as a national banking association subject to examination by the Office of the Comptroller of the Currency (the
OCC). The OCC regulates all areas of a national banks operations, both commercial and trust, including loans, deposits, mergers, branches and payments of dividends. FCBNA, by means of its national charter, is also a member of the
Federal Reserve System, and as such, is affected by the monetary policies of the Federal Reserve System, which regulates the national money supply in order to mitigate recessionary and inflationary pressures. The instruments of monetary policy
employed by the Federal Reserve include open market operations in U. S. Government securities, changes in the reserve requirement for member banks, and changes in the discount rate for member bank borrowings. FCBNA is also insured and regulated by
the Federal Deposit Insurance Corporation (the FDIC). The major function of the FDIC with respect to insured member banks is to pay depositors, to



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the extent provided by law, in the event an insured bank is closed without adequately providing for payment of the claims of the depositors.

The OCC also administers a number of federal statutes that apply to national banks such as the Depository Institution Management
Interlocks Act, the International Lending Supervision Act of 1983 and the Community Reinvestment Act of 1977 (CRA). CRA requires that, in connection with their examinations of financial institutions, the OCC shall evaluate the record of
FCBNA in meeting the credit needs of the local community, including low and moderate income neighborhoods, consistent with the safe and sound operation of the bank. These factors are also considered in evaluating mergers, acquisitions, and
applications to open a branch facility. The federal banking agencies, including the OCC, issued a joint rule which became effective for FCBNA in 1997 related to evaluating an institutions CRA performance. The rule evaluates institutions based
on their actual performance (rather than efforts) in meeting community credit needs. Subject to certain exceptions, the OCC assesses the CRA performance of a national bank by applying lending, investment, and service tests. The OCC assigns a rating
to a national bank based on the banks performance under the tests. To evaluate compliance with the lending, investment and service tests, subject to certain exceptions, FCBNA is required to collect and report to the OCC extensive demographic
and loan data. FCBNA received a satisfactory rating in its most recent CRA examination.

The passage of the
Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (the Riegle-Neal Act) increased the ability of financial holding companies and banks to operate across state lines. Under the Riegle-Neal Act, with the approval of the
Board of Governors of the Federal Reserve System, and subject to nationwide and statewide concentration limits, the Corporation and any other bank holding company located in West Virginia may acquire or merge with a bank located in any other state
and a bank holding company located outside of West Virginia may acquire or merge with any West Virginia-based bank, provided the acquirer is adequately capitalized and adequately managed, as defined in the Riegle-Neal Act. The Interstate Banking Act
also permits de novo branching. The legislation preserves the state laws which require that a bank must be in existence for a minimum period of time before being acquired, as long as the requirement is five years or less. FCBNA, under the provisions
of the Riegle-Neal Act, is headquartered in West Virginia and operates branches in both West Virginia and Virginia.

In
response to the financial crisis affecting the banking system and financial markets, the Emergency Economic Stabilization Act (EESA) was signed into law on October 3, 2008, and established the Troubled Asset Relief Program
(TARP). As part of TARP, the U.S. Treasury established the Capital Purchase Program (CPP) to provide up to $700 billion of funding to eligible financial institutions through the purchase of capital stock and other financial
instruments for the purpose of stabilizing and providing liquidity to the U.S. financial markets. Due to its strong capital position, the Corporation elected not to apply for participation in TARP. In connection with EESA, there have been
numerous actions by the Federal Reserve Board, Congress, the U.S. Treasury, the FDIC, the SEC and others to further the economic and banking industry stabilization efforts under EESA. It remains unclear at this time what further legislative and
regulatory measures will be implemented under EESA affecting the Corporation.

On February 17, 2009 President Obama
signed into law the American Recovery and Reinvestment Act of 2009 (ARRA), more commonly known as the economic stimulus or economic recovery package. ARRA included a wide variety of programs intended to stimulate the economy and provided
for extensive infrastructure, energy, health, and education needs. In addition, ARRA imposed certain new executive compensation and corporate expenditure limits on all current and future TARP recipients that were in addition to those previously
announced by the U.S. Treasury, until an institution had repaid the U.S. Treasury, subject to the U.S. Treasurys consultation with the recipients appropriate regulatory agency.



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On July 21, 2010, sweeping financial regulatory reform legislation entitled the
Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) was signed into law. The Dodd-Frank Act implements far-reaching changes across the financial regulatory landscape, including provisions that,
among other things, will:



| |  |  | Centralize responsibility for consumer financial protection by creating a new agency, the Bureau of Consumer Financial Protection, responsible for
implementing, examining and enforcing compliance with federal consumer financial laws.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Require the bank regulators to seek to make its capital requirements for all banks countercyclical so that capital requirements increase in times of
economic expansion and decrease in times of economic contraction.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Require financial holding companies to be well-capitalized and well-managed as of July 21, 2011. Bank holding companies and banks must also be
both well-capitalized and well-managed in order to acquire banks located outside their home state.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Change the assessment base for federal deposit insurance from the amount of insured deposits to consolidated assets less tangible capital, eliminate
the ceiling on the size of the Deposit Insurance Fund (DIF) and increase the floor of the size of the DIF, which generally will require an increase in the level of assessments for institutions with assets in excess of $10 billion.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Impose comprehensive regulation of the over-the-counter derivatives market, which would include certain provisions that would effectively prohibit
insured depository institutions from conducting certain derivatives businesses in the institution itself.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Implement corporate governance revisions, including with regard to executive compensation and proxy access by shareholders that apply to all public
companies, not just financial institutions.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Make permanent the $250 thousand limit for federal deposit insurance and provide unlimited federal deposit insurance until January 1, 2013
for non-interest bearing demand transaction accounts at all insured depository institutions.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Repeal the federal prohibitions on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business
transaction and other accounts.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Amend the Electronic Fund Transfer Act (EFTA) to, among other things, give the Federal Reserve the authority to establish rules regarding interchange
fees charged for electronic debit transactions by payment card issuers having assets over $10 billion and to enforce a new statutory requirement that such fees be reasonable and proportional to the actual cost of a transaction to the issuer.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Many aspects of the Dodd-Frank Act are subject to rulemaking and will take effect over several years,
making it difficult to anticipate the overall financial impact on our Company, our customers or the financial industry more generally. Provisions in the legislation that affect deposit insurance assessments, payment of interest on demand deposits
and interchange fees could increase the costs associated with deposits as well as place limitations on certain revenues those deposits may generate.

In October 2010, the FDIC adopted a new DIF restoration plan to ensure that the fund reserve



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ratio reaches 1.35% by September 30, 2020, as required by the Dodd-Frank Act. Under the new restoration plan, the FDIC will forego the uniform three-basis point increase in initial
assessment rates scheduled to take place on January 1, 2011 and maintain the current schedule of assessment rates for all depository institutions. At least semi-annually, the FDIC will update its loss and income projections for the fund and, if
needed, will increase or decrease assessment rates, following notice-and-comment rulemaking if required.

In November 2010,
the FDIC issued a final rule to implement provisions of the Dodd-Frank Act that provide for temporary unlimited coverage for non-interest-bearing transaction accounts. The separate coverage for non-interest-bearing transaction accounts became
effective on December 31, 2010 and terminates on December 31, 2012.

STATISTICAL DISCLOSURE

The statistical and other financial data disclosures required pursuant to Guide 3 of the Preparation and Filing of Reports and
Registration Statements under the Securities Exchange Act of 1934 are contained within Managements Discussion and Analysis of Financial Condition and Results of Operations appearing on pages 2 through 20 of the accompanying 2010 Annual Report
to Stockholders, incorporated herein by reference in this Form 10-K Annual Report as Exhibit 13.

AVAILABLE INFORMATION

The Registrant files Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, current reports on Form 8-K, and amendments to such
filed reports with the Securities and Exchange Commission (SEC). These reports are available at the SECs Public Reference Room at 450 Fifth Street, N.W., Washington, D.C. 20549. You may read and copy any materials that we file with
the SEC at the Public Reference Room. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains a website at www.sec.gov that contains reports, proxy and information
statements, and other information regarding issuers that file electronically with the SEC. The Registrant also maintains a website for investor relations that can be accessed at www.firstcentury.com that contains additional information about
the activities of the Registrant.

ITEM 1A. RISK FACTORS

Not applicable.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

The executive offices
of the Registrant are located at 500 Federal Street, Bluefield, West Virginia. There are twelve properties owned or leased by FCBNA consisting of modern single purpose facilities that house all the amenities to comfortably conduct the full range of
financial services provided by the Registrant and its subsidiaries. Nine of these offices are owned and three are leased.



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ITEM 3. LEGAL PROCEEDINGS

Neither the Registrant nor any of its subsidiaries are presently involved in any material legal proceedings other than ordinary routine
litigation incidental to its business.

ITEM 4. (Removed and Reserved)



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PART II

ITEM 5. MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

No established public market presently exists for the common stock of the Registrant. Quotations may be obtained through the OTC Bulletin
Board under the trading symbol FCBS. Management does not expect that a more active trading market will develop in the near future for the common stock of the Registrant.

There were no purchases by the Corporation of its equity securities during the three months ended December 31, 2010.

The Corporations stock repurchase plan, allowing for the purchase of up to 20,000 shares, was announced February 20, 2001. This repurchase plan was amended by the Board of Directors (i) on
February 15, 2005, to allow for the purchase of up to 40,000 shares; (ii) on May 24, 2005, to allow for the purchase of up to 60,000 shares; (iii) on May 15, 2007, to allow for the purchase of up to 80,000 shares; and
(iv) on October 16, 2007, to allow for the purchase of up to 120,000 shares. The repurchase plan has no expiration date. No plans have expired during the reporting period. No determination has been made to terminate the repurchase plan or
to stop making purchases under the repurchase plan. At December 31, 2010, management was authorized to repurchase 9,572 shares.

Page 18 of Managements Discussion and Analysis of Financial Condition and Results of Operations of the accompanying 2010 Annual Report to Stockholders, incorporated herein by reference in this Form
10-K Annual Report as Exhibit 13 (incorporated herein by reference) describes further the information for the market, stockholders, dividends, relative performance of the Registrants common stock. The payment of dividends is subject to the
restrictions described in Note 11 of the Notes to Consolidated Financial Statements. The Board of Directors evaluates the dividend payment on the Registrants common stock during each calendar quarter.

ITEM 6. SELECTED FINANCIAL DATA

Not applicable.

ITEM 7. MANAGEMENTS DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Managements Discussion and Analysis of Financial Condition
and Results of Operations appearing on pages 2 through 20 of the accompanying 2010 Annual Report to Stockholders, incorporated herein by reference in this Form 10-K Annual Report as Exhibit 13. Managements discussion and analysis should be
read in conjunction with the related financial statements and notes thereto. The information required for off-balance sheet commitments can be found on pages 6-7 in Managements Discussion and Analysis of Financial Condition and Results of
Operations, and Note 10 of the Notes to Consolidated Financial Statements of the accompanying 2010 Annual Report to Stockholders, incorporated herein by reference in this Form 10-K Annual Report as Exhibit 13.



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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The following financial statements and report of independent registered public accounting firm for the years ended December 31, 2010
and 2009, which are included in the Corporations 2010 Annual Report to Stockholders, are incorporated herein by reference in this Form 10-K Annual Report as Exhibit 13.

The report of the independent registered public accounting firm, Brown, Edwards & Company, L.L.P., Bluefield, West Virginia, on page 51, reflects an unqualified opinion on the 2010 and 2009
consolidated statements of financial condition and the related consolidated statements of income, changes in stockholders equity, and cash flows for each of the years in the two-year period ended December 31, 2010.

Reference to

2010 Annual Report



|                                                                        |  |              
|----------------------------------------------------------------------- |  | -------------
|Consolidated Statements of Financial Condition                          |  | Page 21      
|Consolidated Statements of Income                                       |  | Page 22      
|Consolidated Statements of Changes in Stockholders Equity              |  | Page 23      
|Consolidated Statements of Cash Flows                                   |  | Page 24      
|Notes to Consolidated Financial Statements                              |  | Pages 25 - 49
|Managements Annual Report on Internal Control Over Financial Reporting |  | Page 50      
|Report of Independent Registered Public Accounting Firm                 |  | Page 51      

ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Disclosure controls and procedures:

Senior management monitors and reviews the
internal controls established for the various operating activities of the Company on an on-going basis. Additionally, the Company has created a Disclosure Review Committee to review not only internal controls but the information used by
Companys financial officers to prepare the Companys periodic SEC filings and corresponding financial statements. Internal audits conducted by the Companys internal audit department are also reviewed by senior officers to assist
them in assessing the adequacy of the Companys internal control structure. These audits are also discussed in detail with the Companys Audit Committee.



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We have carried out an evaluation, under the supervision and the participation of our
management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange
Act of 1934, as amended (the Act), as of the end of the fiscal year covered by this report. Based upon that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures are
effective in providing reasonable assurance that (a) the information required to be disclosed by us in the reports that we file or submit under the Act is recorded, processed, summarized and reported within the time periods specified in the
Securities and Exchange Commissions rules and forms, and (b) such information is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely
decisions regarding required disclosure.

Because of the inherent limitations in all control systems, no evaluation of
controls can provide absolute assurance that our disclosure controls and procedures will detect or uncover every situation involving the failure of persons within First Century Bankshares, Inc. to disclose material information otherwise required to
be set forth in our periodic reports.

Managements Annual Report on Internal Control Over Financial Reporting.

Managements Annual Report on Internal Control over Financial Reporting appears on Page 50 of in the Registrants 2010 Annual
Report to the Stockholders attached hereto as Exhibit 13 to this report.

Changes in Internal Control Over Financial Reporting.

There were no changes in the Companys internal controls over financial reporting during the fourth fiscal quarter of
the fiscal year covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None.



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PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information concerning the directors and executive officers of the Registrant has been omitted in accordance with General Instruction G since the Registrant has filed its definitive proxy statement
with the Commission on or about March 25, 2011 (which is not later than 120 days after December 31, 2010, the close of the fiscal year of the Registrant). The information required by this item is set forth under the captions DIRECTOR
QUALIFICATIONS AND REVIEW OF DIRECTOR NOMINEES and NOMINEES FOR DIRECTORS on pages 12-15, IDENTIFICATION OF EXECUTIVE OFFICERS on page 25, Family Relationships on page 11, The Audit and Compliance
Committee on page 5, the Nominating Committee and the Nomination Process on pages 6-8, and Section 16(a) Beneficial Ownership Reporting Compliance on page 27, in our 2011 Proxy Statement and is incorporated herein by
reference to such proxy statement.

A sample Officers Code of Ethics is attached hereto as Exhibit 14 to this Form 10-K
Annual Report, and is incorporated herein by reference.

ITEM 11. EXECUTIVE COMPENSATION

Management remuneration has been omitted in accordance with General Instruction G since the Registrant has filed its definitive proxy
statement with the Commission on or about March 25, 2011, (which is not later than 120 days after December 31, 2010, the close of the fiscal year of the Registrant). The information required by this item is set forth under the captions
EXECUTIVE COMPENSATION on pages 19-23 and DIRECTOR COMPENSATION on page 24, in our 2011 Proxy Statement and is incorporated herein by reference to such proxy statement.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Security ownership of certain beneficial owners and management has been omitted in accordance with General Instruction G
since the Registrant has filed its definitive proxy statement with the Commission on or about March 25, 2011, (which is not later than 120 days after December 31, 2010, the close of the fiscal year of the Registrant). The information
required by this item is set forth under the captions Principal Stockholders on page 27, and Security Ownership of Directors, Nominees for Director and Named Executive Officers on pages 26-27 in our 2011 Proxy Statement is
incorporated herein by reference to such proxy statement.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Certain relationships and related transactions has been omitted in accordance with
General Instruction G since the Registrant has filed its definitive proxy statement with the commission on or about March 25, 2011, (which is not later than 120 days after December 31, 2010, the close of the fiscal year of the Registrant).
The information required by this item is set forth under the captions Related Person Transactions on page 9 and Independence of Directors and Nominees on pages 8-9 in our 2011 Proxy Statement and is incorporated herein by
reference to such proxy statement.



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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

Principal accounting fees and services has been omitted in accordance with General Instruction G since the Registrant has filed this
required information in its definitive proxy statement with the commission on or about March 25, 2011, (which is not later than 120 days after December 31, 2010, the close of the fiscal year of the Registrant). The information required by
this item is set forth under the caption Fees Paid to Independent Registered Public Accounting Firm on pages 17-18 in our 2011 Proxy Statement and is incorporated herein by reference to such proxy statement.



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##### Table of Contents

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES



|    |  |    |  |                                                                                                                                                                   
|--- |  | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | 1. |  | Financial Statements.                                                                                                                                             
|    |  |   
|    |  |    |  | See Item 8 on Page 10 of this document for a listing of all Financial Statements, Report of Independent Registered Public Accounting Firm, and Supplementary
Data.
|    |  |   
|    |  | 2. |  | Financial Statement Schedules.                                                                                                                                    
|    |  |   
|    |  |    |  | All schedules are omitted, as the required information is inapplicable or the information is presented in the Consolidated Financial Statements or related notes. 
|    |  |   
|    |  | 3. |  | Exhibits Required by Item 601 of Regulation S-K.                                                                                                                  

The
following exhibits are filed herewith or incorporated by reference.



|               |  |                                                                             
|-------------- |  | ----------------------------------------------------------------------------
|Exhibit
Number |  | Description of Exhibit                                                      
|               | 
|3.             |  | Articles of Incorporation and Bylaws                                        
|               | 
|3(i)           |  | Articles of Amendment to Articles of Incorporation(1)                       
|               | 
|3(ii)          |  | Restated Articles of Incorporation(2)                                       
|               | 
|3(iii)         |  | Amended and Restated By-laws of the Company(3)                              
|               | 
|10.            |  | Material Contracts                                                          
|               | 
|10(i)          |  | Severance Agreement between the Registrant and R.W. Wilkinson(4)            
|               | 
|10(ii)         |  | Executive Benefit Agreement between the Registrant and Frank W. Wilkinson(5)
|               | 
|13.            |  | Annual report to security holders.                                          
|               | 
|14.            |  | Sample Officers Code of Ethics                                             
|               | 
|21.            |  | Subsidiaries of the registrant(6)                                           
|               | 
|31.1           |  | Certification Pursuant to Rule 13a-14(a)/15d-14(a)                          
|               | 
|31.2           |  | Certification Pursuant to Rule 13a-14(a)/15d-14(a)                          
|               | 
|32.1           |  | Certification Pursuant to 18 U.S.C. Section 1350                            
|               | 
|32.2           |  | Certification Pursuant to 18 U.S.C. Section 1350                            



|(1) | Incorporated by reference to Exhibit 3 to the Companys Annual Report on Form 10-K dated December 31, 1999 and filed March 27, 2000, File Number: 000-11671;
Film Number: 579818.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Incorporated by reference to Exhibit 3(b) to the Companys Quarterly Report on Form 10-Q dated June 30, 2006 and filed August 14, 2006, File Number
000-11671; Film Number: 96610281.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Incorporated by reference to Exhibit 3(ii) to the Companys Current Report on Form 8-K dated May 18, 2010 and filed May 24, 2010, File Number: 000-11671;
Film Number: 10853060.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | Incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K dated December 16, 2010 and filed December 22, 2010, File Number:
000-11671; Film Number: 101269249.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|(5) | Incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K dated December 2, 2010 and filed December 8, 2010, File Number:
000-11671; Film Number: 101239496.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(6) | This disclosure is included in Note 1 in the notes to the consolidated financial statements which are incorporated herein by reference.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------



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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.



|             |  |                                |  |                                           
|------------ |  | ------------------------------ |  | ------------------------------------------
|(Registrant) |  | First Century Bankshares, Inc.
|             |  |                               
|             |  | BY:                            |  | /s/ J. Ronald Hypes                       
|             |  |                                |  | J. Ronald Hypes, Treasurer                
|             |  |                                |  | (Principal Accounting & Financial Officer)
|             |  |                               
|             |  | DATE:                          |  | March 25, 2011                            

Pursuant to the
requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.



|    |  |                                            |  |  |  |       |  |               
|--- |  | ------------------------------------------ |  |  |  | ----- |  | --------------
|BY: |  | /s/ Frank W. Wilkinson                     |  |  |  | Date: |  | March 25, 2011
|    |  | Frank W. Wilkinson                         |  |  |  |       |  |               
|    |  | President & Chief Executive Officer,       |  |  |  |       |  |               
|    |  | Secretary and Director                     |  |  |  |       |  |               
|    |  | (Principal Executive Officer)              |  |  |  |       |  |               
|    |  |                                            |  | 
|BY: |  | /s/ J. Ronald Hypes                        |  |  |  | Date: |  | March 25, 2011
|    |  | J. Ronald Hypes                            |  |  |  |       |  |               
|    |  | Treasurer                                  |  |  |  |       |  |               
|    |  | (Principal Accounting & Financial Officer) |  |  |  |       |  |               
|    |  |                                            |  | 
|BY: |  | /s/ J. Richard Chambers                    |  |  |  | Date: |  | March 25, 2011
|    |  | J. Richard Chambers                        |  |  |  |       |  |               
|    |  | Director                                   |  |  |  |       |  |               
|    |  |                                            |  | 
|BY: |  | /s/ Paul Cole, Jr.                         |  |  |  | Date: |  | March 25, 2011
|    |  | Paul Cole, Jr.                             |  |  |  |       |  |               
|    |  | Director                                   |  |  |  |       |  |               
|    |  |                                            |  | 
|BY: |  |                                            |  |  |  | Date: |  | ___________   
|    |  | B. L. Jackson, Jr.                         |  |  |  |       |  |               
|    |  | Director                                   |  |  |  |       |  |               
|    |  |                                            |  | 
|BY: |  | /s/ Robert M. Jones, Jr.                   |  |  |  | Date: |  | March 25, 2011
|    |  | Robert M. Jones, Jr., M.D.                 |  |  |  |       |  |               
|    |  | Vice Chairman of the Board and Director    |  |  |  |       |  |               



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|    |  |                                    |  |  |  |       |  |               
|--- |  | ---------------------------------- |  |  |  | ----- |  | --------------
|BY: |  | /s/ Samuel V. Jones                |  |  |  | Date: |  | March 25, 2011
|    |  | Samuel V. Jones                    |  |  |  |       |  |               
|    |  | Director                           |  |  |  |       |  |               
|    |  |                                    |  | 
|BY: |  | /s/ Charles A. Peters              |  |  |  | Date: |  | March 25, 2011
|    |  | Charles A. Peters                  |  |  |  |       |  |               
|    |  | Director                           |  |  |  |       |  |               
|    |  |                                    |  | 
|BY: |  | /s/ John H. Shott                  |  |  |  | Date: |  | March 25, 2011
|    |  | John H. Shott                      |  |  |  |       |  |               
|    |  | Director                           |  |  |  |       |  |               
|    |  |                                    |  | 
|BY: |  | /s/ Walter L. Sowers               |  |  |  | Date: |  | March 25, 2011
|    |  | Walter L. Sowers                   |  |  |  |       |  |               
|    |  | Director                           |  |  |  |       |  |               
|    |  |                                    |  | 
|BY: |  | /s/ Wm. Chandler Swope             |  |  |  | Date: |  | March 25, 2011
|    |  | Wm. Chandler Swope                 |  |  |  |       |  |               
|    |  | Director                           |  |  |  |       |  |               
|    |  |                                    |  | 
|BY: |  | /s/ R. W. Wilkinson                |  |  |  | Date: |  | March 25, 2011
|    |  | R. W. Wilkinson                    |  |  |  |       |  |               
|    |  | Chairman of the Board and Director |  |  |  |       |  |               



17