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Company Announcements

First Community Corp (South Carolina)

First Community Corporation Announces Record Earnings and Increased Cash Dividend

LEXINGTON, S.C. , July 23, 2025 /PRNewswire/ -- 

Highlights for Second Quarter of 2025

  • Net income of $5.186 million during the second quarter of 2025, an increase of 29.7% on a linked quarter basis, and 58.8% year-over-year.
  • Net income for the six months ended June 30, 2025 of $9.183 million, a 56.7% increase over the same time period in 2024.
  • Diluted EPS of $0.67 per common share for the second quarter of 2025, an increase of 31.4% on a linked quarter basis and 59.5% year-over-year.
  • Diluted EPS of $1.18 per common share for the six months ended June 30, 2025, an increase of 55.3% over the same time period in 2024.
  • Net interest margin on a tax equivalent basis of 3.21% with margin expansion of eight basis points during the second quarter of 2025.
  • Assets under management (AUM) exceeded $1 billion for the first time and were a record $1.011 billion at June 30, 2025, a 9.1 % increase year-to-date through June 30, 2025. Investment advisory revenue was $1.751 million during the second quarter of 2025.
  • Mortgage line of business total production was a record $62.9 million during the second quarter of 2025 with fee revenue of $879 thousand.
  • Total loans increased by $8.1 million during the second quarter of 2025, an annualized growth rate of 2.6%. Year-to-date through June 30, 2025, loans increased by $39.5 million, an annualized growth rate of 6.5%
  • Total deposits were $1.754 billion and customer deposits (excludes brokered CDs) were $1.744 billion at June 30, 2025. Customer deposit growth was $28.3 million during the second quarter of 2025, a 6.6% annualized growth rate, and $78.1 million year-to-date through June 30, 2025, a 9.5% annualized growth rate.
  • Excellent key credit quality metrics with net charge-offs, including overdrafts, during the second quarter of 2025 of $10 thousand; net loan recoveries, excluding overdrafts, during the quarter of $5 thousand; non-performing assets of 0.02%; and past due loans of 0.02% at June 30, 2025.
  • Increased cash dividend to $0.16 per common share, which is the 94th consecutive quarter of cash dividends paid to common shareholders.
  • Announced the signing of an agreement to acquire Signature Bank of Georgia.

Today, First Community Corporation (Nasdaq:  FCCO), the holding company for First Community Bank, reported net income for the second quarter of 2025 of $5.186 million as compared to $3.997 million in the first quarter of 2025 and $3.265 million in the second quarter of 2024.  Diluted earnings per common share were $0.67 for the second quarter of 2025 as compared to $0.51 in the first quarter of 2025 and $0.42 for the second quarter of 2024.  

Year-to-date through June 30, 2025, net income was $9.183 million compared to $5.862 million during the first six months of 2024.  Diluted earnings per share for the first half of 2025 were $1.18, compared to $0.76 during the same time period in 2024. 

Cash Dividend and Capital

The Board of Directors approved an increased cash dividend for the second quarter of 2025.  The company will pay a $0.16 per share dividend to holders of the company's common stock.  This dividend is payable August 19, 2025 to shareholders of record as of August 5, 2025.  First Community Corporation President and CEO Mike Crapps commented, "Our entire board is pleased that our performance enables the company to continue its cash dividend for the 94th consecutive quarter." 

As previously announced on May 9, 2025, the Company's Board of Directors approved a plan to utilize up to $7.5 million of capital to repurchase shares of its common stock, which represented approximately 5.0% of total shareholders' equity as of March 31, 2025.  This new share repurchase plan expires on May 8, 2026.  Under the repurchase plan, the Company may repurchase shares from time to time.  No shares have been repurchased under this plan.  Mr. Crapps noted, "This approved share repurchase provides us with some flexibility in managing capital going forward."   

Each of the regulatory capital ratios for the bank exceed the well capitalized minimum levels currently required by regulatory statute.  At June 30, 2025, the bank's regulatory capital ratios (Leverage, Tier I Risk Based and Total Risk Based) were 8.44%, 13.04%, and 14.10%, respectively.  This compares to the same ratios as of June 30, 2024 of 8.44%, 12.56%, and 13.62%, respectively. As of June 30, 2025, the bank's Common Equity Tier I ratio was 13.04% compared to 12.56% at June 30, 2024.  The Company's Tangible Common Equity to Tangible Assets ratio (TCE ratio) was 6.92% at June 30, 2025, compared to 6.66% at March 31, 2025 and 6.47% at June 30, 2024. 

Tangible Book Value (TBV) per share increased during the second quarter to $18.28 per share at June 30, 2025, from $17.56 per share as of March 31, 2025 and $15.85 as of June 30, 2024. 

Loan Portfolio Quality/Allowance for Credit Losses

The company's asset quality metrics as of June 30, 2025 were excellent.  The non-performing assets ratio as of June 30, 2025 was 0.02% and the total past dues ratio was 0.02%.  Non-accrual loans were $210 thousand, which is 0.02% of total loans, at June 30, 2025.  During the second quarter of 2025, the bank had net charge-offs, including overdrafts, of $10 thousand and net loan recoveries, excluding overdrafts, of $5 thousand.  Year-to-date through June 30, 2025, net recoveries, including overdrafts, were $1 thousand and net loan recoveries, excluding overdrafts, were $19 thousand.  The ratio of classified loans plus OREO now stands at 0.82% of total bank regulatory risk-based capital as of June 30, 2025.  At June 30, 2025, the company had $194 thousand in OREO compared to $437 thousand the prior quarter.     

The allowance for credit losses (ACL) on loans as a percentage of total loans declined to 1.06% at June 30, 2025, from 1.09% at March 31, 2025, due to a three basis points reduction in our ACL qualitative factors primarily related to improvements in external forecasts for the probability of a United States recession.

Balance Sheet                   

Total loans increased during the second quarter of 2025 by $8.1 million, which is an annualized growth rate of 2.6%.  Commercial loan production was $46.3 million and advances from unfunded commercial construction loans available for draws were $14.8 million during the second quarter of 2025.  This compares to $53.6 million and $9.0 million, respectively on a linked quarter basis.  Loan payoffs and paydowns were up 126.3% on a linked quarter basis.  Loan yields increased in the second quarter of 2025 to 5.77% from 5.71% in the first quarter of the year.  First Community Bank President and CEO Ted Nissen noted, "Loan production continued strong in the second quarter, but was significantly offset by much higher loan payoffs during the quarter.  We are pleased that our annualized growth rate for loans is still solid at 6.5% and we see positive momentum going into the third quarter." 

Total deposits were $1.754 billion at June 30, 2025 compared to $1.726 billion at March 31, 2025, an increase of $28.3 million, a 6.6% annualized growth rate.  Pure deposits, which are defined as total deposits less certificates of deposit, increased $23.0 million during the second quarter of 2025, to $1.437 billion at June 30, 2025, a 6.5% annualized growth rate.  Non-interest bearing accounts increased $7.0 million to $475.9 million during the quarter and at June 30, 2025 represented 27.1% of total deposits. This compares to 27.2% as of March 31, 2025. The average balance of all customer deposit accounts as of June 30, 2025 was $31,119.  The average balance for consumer accounts was $16,138 and for non-consumer accounts was $70,257.  Securities sold under agreements to repurchase, which are related to customer cash management accounts or business sweep accounts, were $103.6 million at June 30, 2025, compared to $129.8 million at March 31, 2025 and $59.3 million at June 30, 2024.  All of the above point to the granularity and the quality of the bank's deposit franchise. 

Costs of deposits decreased on a linked quarter basis to 1.82% in the second quarter of 2025 from 1.85% in the first quarter of 2025.  Cost of funds decreased on a linked quarter basis to 1.91% in the second quarter of 2025 from 1.94% in the first quarter of 2025.  Mr. Nissen commented, "A strength of our bank has been and continues to be the value of our deposit franchise.  In the second quarter of 2025, we saw growth in total deposits, pure deposits and non-interest bearing deposits.  While customer cash management accounts were down on a linked quarter due to seasonality in those deposits, they were up 74.8% year-over-year.  In addition, with this growth, we were still able to continue to proactively manage the pricing of our interest-bearing deposit products and saw a decrease in the cost of deposits and cost of funds during the second quarter of 2025."

The bank has short-term investments, primarily interest bearing cash at the Federal Reserve Bank, of $151.3 million at June 30, 2025 compared to $173.2 million at March 31, 2025.  Further, the bank has additional sources of liquidity in the form of federal funds purchased lines of credit in the total amount of $77.5 million with three financial institutions and $10.0 million through the Federal Reserve Discount Window.  The bank also has substantial borrowing capacity at the Federal Home Loan Bank (FHLB) of Atlanta with an approved line of credit of up to 25% of assets, subject to collateral requirements.  There were no borrowings against the above lines of credit as of June 30, 2025.

The investment portfolio was $507.3 million at June 30, 2025 compared to $495.7 million at March 31, 2025 with a yield of 3.43% in the second quarter of 2025.  The effective duration of the total investment portfolio is relatively low at 3.3.  Accumulated other comprehensive loss (AOCL) improved to $21.9 million at June 30, 2025 from $23.0 million at March 31, 2025.  During the second quarter of 2025, the company purchased four fixed rate agency mortgage-backed security bonds (MBS) totaling $20.0 million with a purchase yield of 4.78% and entered into a $19.8 million amortizing notional amount pay-fixed/receive-floating interest rate swap, which was designated as a fair value hedge.  This transaction was part of a hedging strategy which converts these fixed rate agency MBS bonds to synthetic floaters. The company pays a fixed rate of 3.67% and receives overnight SOFR.

Revenue

Net Interest Income/Net Interest Margin

Net interest income was $15.3 million for the second quarter of 2025 compared to first quarter of 2025 net interest income of $14.4 million and $12.7 million for the second quarter of 2024.  Second quarter of 2025 net interest margin, on a tax equivalent basis, was 3.21% compared to 3.13% in the first quarter of the year, up eight basis points on a linked quarter. 

Effective May 5, 2023, the company entered into a pay-fixed swap agreement with an initial notional amount of $150.0 million ($149.8 million as of June 30, 2025), designated as a fair value hedge for fixed rate loans in the closed loan portfolio. The swap converts these loans to a synthetic floating SOFR rate, with the company paying a fixed 3.58% and receiving overnight SOFR through maturity on May 5, 2026. This interest rate swap positively impacted interest on loans by $284 thousand during the second quarter of 2025 and $571 thousand year-to-date through June 30, 2025.  Loan yields and net interest margin both benefitted from this interest rate swap with  increases of nine basis points and six basis points respectively during the second quarter of 2025 and 10 basis points and six basis points respectively, year-to-date through June 30, 2025. 

Non-Interest Income

Non-interest income in the second quarter of 2025 was $4.206 million, compared to $3.982 million in the first quarter of 2025 and $3.642 million in the second quarter of 2024, an increase of 5.6% and 15.5%, respectively. 

Total production in the mortgage line of business in the second quarter of 2025 was $62.9 million which was comprised of $31.9 million in secondary market loans, $5.7 million in adjustable rate mortgages (ARMs) and $25.3 million in construction loans.  Fee revenue from the mortgage line of business was $879 thousand for the second quarter of 2025 which includes $876 thousand associated with the secondary market loans with a gain-on-sale margin of 2.74%.  This compares to production year-over-year of $49.0 million which was comprised of $22.7 million in secondary market loans, $14.6 million in ARMs, and $11.7 million in construction loans.  Fee revenue associated with the secondary market loans in the second quarter of 2024 was $655 thousand with a gain-on-sale margin of 2.89%.  Mr. Nissen noted, "Mortgage loan production was strong in the second quarter of the year, especially the demand for secondary market and construction loans." 

Total assets under management (AUM) in the investment advisory line of business were $1.011 billion at June 30, 2025 from $892.8 million at March 31, 2025 and $926.0 million at December 31, 2024. This record setting AUM is driven by a combination of net new asset growth and market appreciation. Revenue in this line of business was $1.751 million in the second quarter of 2025, compared to $1.806 million at March 31, 2025 and $1.508 million in the second quarter of 2024. 

During the second quarter of 2025, the company realized a $127 thousand gain on the sale of other real estate owned property.

Non-Interest Expense

Non-interest expense was $13.083 million in the second quarter of 2025 an increase of $329 thousand over the first quarter of the year.  During the second quarter of 2025, the company recognized $234 thousand in expenses related to its planned acquisition of Signature Bank of Georgia which was announced on July 14, 2025 and is discussed in more detail below. Salaries and benefits expense increased $403 thousand on a linked quarter due to higher variable compensation expenses in the mortgage and financial planning lines of business, higher incentive accruals and payroll taxes related to higher performance, and the full quarter impact of annual increases for exempt employees which were effective on March 1, 2025.  Marketing and public relations expenses were down $306 thousand in the second quarter of 2025 due to planned lower media expenses and marketing activities during the quarter.  The Other expense category decreased $70 thousand on a linked quarter basis due to lower professional and legal expenses (non-acquisition related) compared to the first quarter of 2025.  Other real estate expenses were up $98 thousand in the second quarter of 2025 due to a write down of an OREO property.

Other

As previously announced, on July 13, 2025, the company entered into an agreement to acquire Signature Bank of Georgia. This planned acquisition will provide the company with a presence in the exciting Atlanta area as well as the addition of an SBA lending line of business.  Mr. Crapps noted, "This expansion into a new market and the addition of a new line of business are two key initiatives that we have been diligently working towards." It is anticipated that the financial closing will be early in the first quarter of 2026 with the operational conversion to follow later in the first or early second quarter of 2026. 

FORWARD-LOOKING STATEMENTS

This news release and certain statements by our management may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans, goals, projections and expectations, and are thus prospective. Forward looking statements can be identified by words such as "anticipate", "expects", "intends", "believes", "may", "likely", "will", "plans", "positions", "future", "forward", or other statements that indicate future periods.  Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.  Such risks, uncertainties and other factors, include, among others, the following: (1) the possibility that the planned acquisition of Signature Bank of Georgia may not be completed in a timely manner or at all; (2) failure to obtain required shareholder or regulatory approvals in connection with the planned acquisition; (3) the risk that anticipated cost savings or other expected benefits of the planned acquisition may not be realized; (4) potential disruption to client or employee relationships as a result of the planned acquisition; (5) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (6) the strength of the United States economy in general and the strength of the local economies in which we conduct operations may be different than expected; (7) the rate of delinquencies and amounts of charge-offs, the level of allowance for credit loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (8) changes in legislation, regulation, policies or administrative practices, whether by judicial, governmental, or legislative action; (9) adverse conditions in the stock market, the public debt markets and other capital markets (including changes in interest rate conditions) could continue to have a negative impact on the company; (10) changes in interest rates, which have and may continue to affect our deposit and funding costs, net income, prepayment penalty income, mortgage banking income, and other future cash flows, or the market value of our assets, including our investment securities; (11) technology and cybersecurity risks, including potential business disruptions, reputational risks, and financial losses, associated with potential attacks on or failures by our computer systems and computer systems of our vendors and other third parties; (12) elevated inflation which causes adverse risk to the overall economy, and could indirectly pose challenges to our customers and to our business; (13) any increases in FDIC assessment which has increased, and may continue to increase, our cost of doing business; (14) the adverse effects of events beyond our control that may have a destabilizing effect on financial markets and the economy, such as epidemics and pandemics, war or terrorist activities, essential utility outages, deterioration in the global economy, instability in the credit markets, disruptions in our customers' supply chains or disruption in transportation; and (15) risks, uncertainties and other factors disclosed in our most recent Annual Report on Form 10-K filed with the SEC, or in any of our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K filed with the SEC since the end of the fiscal year covered by our most recently filed Annual Report on Form 10-K, which are available at the SEC's Internet site (http://www.sec.gov).

Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. We can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

ADDITIONAL INFORMATION ABOUT THE ACQUISITION AND WHERE TO FIND IT

First Community intends to file with the SEC a registration statement on Form S-4 containing a joint proxy statement of First Community and Signature Bank of Georgia and a prospectus of First Community, and First Community will file other documents with respect to the proposed acquisition. A definitive joint proxy statement/prospectus will be mailed to shareholders of both First Community and Signature Bank of Georgia. Investors and shareholders of First Community and Signature Bank of Georgia are urged to read the entire joint proxy statement/prospectus and other documents that will be filed with the SEC carefully and in their entirety when they become available because they will contain important information. Investors and shareholders will be able to obtain free copies of the registration statement and joint proxy statement/prospectus (when available) and other documents filed with the SEC by First Community through the website maintained by the SEC at https://www.sec.gov. Copies of the documents filed with the SEC by First Community will be available free of charge on First Community's internet website or by contacting First Community.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities law of such jurisdiction.

First Community, Signature Bank of Georgia, and each company's respective directors and executive officers and other members of management and employees may be considered participants in the solicitation of proxies in connection with the proposed merger. Information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials to be filed with the SEC when they become available.

FIRST COMMUNITY CORPORATION







BALANCE SHEET DATA







(Dollars in thousands, except per share data)









As of



June 30,

March 31,

December 31,

September 30,

June 30,



2025

2025

2024

2024

2024








  Total Assets


$    2,046,265

$    2,039,371

$    1,958,021

$    1,943,548

$    1,884,844

  Other Short-term Investments and CD's1


151,323

173,246

123,455

144,354

86,172

  Investment Securities







     Investments Held-to-Maturity


201,761

205,819

209,436

212,243

213,706

     Investments Available-for-Sale


302,627

286,944

279,582

269,553

269,918

     Other Investments at Cost


2,894

2,894

2,679

5,054

5,029

   Total Investment Securities


507,282

495,657

491,697

486,850

488,653

  Loans Held-for-Sale


10,975

7,052

9,662

3,935

6,701

  Loans


1,260,055

1,251,980

1,220,542

1,196,659

1,189,189

  Allowance for Credit Losses - Investments


19

24

23

24

27

  Allowance for Credit Losses - Loans


13,330

13,608

13,135

12,933

12,932

  Allowance for Credit Losses - Unfunded Commitments


490

455

480

409

490

  Goodwill


14,637

14,637

14,637

14,637

14,637

  Other Intangibles


368

407

446

486

525

  Total Deposits


1,754,041

1,725,718

1,675,901

1,644,064

1,604,528

  Securities Sold Under Agreements to Repurchase


103,640

129,812

103,110

66,933

59,286

  Federal Funds Purchased


-

-

-

3,656

-

  Federal Home Loan Bank Advances


-

-

-

50,000

50,000

  Junior Subordinated Debt


14,964

14,964

14,964

14,964

14,964

  Accumulated Other Comprehensive Loss (AOCL)


(21,863)

(22,973)

(25,459)

(23,223)

(27,288)

  Shareholders' Equity


155,500

149,959

144,494

143,312

136,179








  Book Value Per Common Share


$           20.23

$           19.52

$           18.90

$           18.76

$           17.84

  Tangible Book Value Per Common Share (non-GAAP)


$           18.28

$           17.56

$           16.93

$           16.78

$           15.85

  Equity to Assets


7.60 %

7.35 %

7.38 %

7.37 %

7.22 %

  Tangible Common Equity to Tangible Assets (TCE Ratio) (non-GAAP)


6.92 %

6.66 %

6.66 %

6.65 %

6.47 %

  Loan to Deposit Ratio (Includes Loans Held-for-Sale)


72.46 %

72.96 %

73.41 %

73.03 %

74.53 %

  Loan to Deposit Ratio (Excludes Loans Held-for-Sale)


71.84 %

72.55 %

72.83 %

72.79 %

74.11 %

  Allowance for Credit Losses - Loans/Loans


1.06 %

1.09 %

1.08 %

1.08 %

1.09 %








Regulatory Capital Ratios (Bank):







  Leverage Ratio


8.44 %

8.45 %

8.40 %

8.39 %

8.44 %

  Tier 1 Capital Ratio


13.04 %

12.90 %

12.87 %

12.93 %

12.56 %

  Total Capital Ratio


14.10 %

13.99 %

13.94 %

14.00 %

13.62 %

  Common Equity Tier 1 Capital Ratio


13.04 %

12.90 %

12.87 %

12.93 %

12.56 %

  Tier 1 Regulatory Capital


$       171,611

$       167,673

$       164,397

$       161,058

$       158,080

  Total Regulatory Capital


$       185,450

$       181,759

$       178,034

$       174,423

$       171,529

  Common Equity Tier 1 Capital


$       171,611

$       167,673

$       164,397

$       161,058

$       158,080








1 Includes federal funds sold and interest-bearing deposits














Average Balances:


Three months ended


Six months ended



June 30,


June 30,



2025

2024


2025

2024








  Average Total Assets


$    2,033,216

$    1,862,009


$    2,007,497

$    1,859,862

  Average Loans (Includes Loans Held-for-Sale)


1,263,027

1,178,342


1,251,192

1,163,803

  Average Investment Securities


505,473

491,187


498,868

495,277

  Average Short-term Investments and CDs1


155,879

79,996


148,287

88,674

  Average Earning Assets


1,924,379

1,749,525


1,898,347

1,747,754

  Average Deposits


1,737,259

1,569,939


1,703,526

1,545,669

  Average Other Borrowings


125,197

139,165


135,414

162,461

  Average Shareholders' Equity


152,097

133,729


149,432

132,855








Asset Quality:


 As of



June 30,

March 31,

December 31,

September 30,

June 30,



2025

2025

2024

2024

2024

Loan Risk Rating by Category (End of Period)







  Special Mention


$           2,506

$           2,357

$             921

$             672

$             673

  Substandard


1,323

1,333

1,341

1,455

1,528

  Doubtful


-

-

-

-

-

  Pass


1,256,226

1,248,290

1,218,280

1,194,532

1,186,988

Total Loans


$    1,260,055

$    1,251,980

$    1,220,542

$    1,196,659

$    1,189,189

Nonperforming Assets







  Non-accrual Loans


$             210

$             215

$             219

$             119

$             173

  Other Real Estate Owned and Repossessed Assets


194

437

543

544

544

  Accruing Loans Past Due 90 Days or More


66

6

48

211

-

Total Nonperforming Assets


$             470

$             658

$             810

$             874

$             717










Three months ended


Six months ended



June 30,


June 30,



2025

2024


2025

2024

  Loans Charged-off


$                 3

$                 6


$                 3

$               31

  Overdrafts Charged-off


19

10


28

36

  Loan Recoveries


(8)

(7)


(22)

(33)

  Overdraft Recoveries


(4)

(4)


(10)

(6)

     Net Charge-offs (Recoveries)


$               10

$                 5


$                (1)

$               28

Net Charge-offs / (Recoveries) to Average Loans2


0.00 %

0.00 %


(0.00 %)

0.00 %

1 Includes federal funds sold and interest-bearing deposits







2 Annualized














 

FIRST COMMUNITY CORPORATION











INCOME STATEMENT DATA











(Dollars in thousands, except per share data)













Three months ended


Three months ended


Six months ended




June 30,


March 31,


June 30,



2025

2024


2025

2024


2025

2024













  Interest income


$    24,173

$    21,931


$    23,082

$    21,256


$    47,255

$    43,187


  Interest expense


8,849

9,237


8,692

9,179


17,541

18,416


  Net interest income


15,324

12,694


14,390

12,077


29,714

24,771


  (Release of) provision for credit losses


(237)

454


437

129


200

583


  Net interest income after (release of) provision for credit losses


15,561

12,240


13,953

11,948


29,514

24,188


  Non-interest income











    Deposit service charges


224

235


221

259


445

494


    Mortgage banking income


879

659


759

425


1,638

1,084


    Investment advisory fees and non-deposit commissions


1,751

1,508


1,806

1,358


3,557

2,866


    Gain on sale of other assets


127

-


-

-


127

-


    Other non-recurring income


-

95


-

-


-

95


    Other


1,225

1,145


1,196

1,142


2,421

2,287


  Total non-interest income


4,206

3,642


3,982

3,184


8,188

6,826


  Non-interest expense











    Salaries and employee benefits


8,060

7,303


7,657

7,101


15,717

14,404


    Occupancy


772

738


777

790


1,549

1,528


    Equipment


390

317


390

330


780

647


    Marketing and public relations


208

258


514

566


722

824


    FDIC assessment


274

302


300

278


574

580


    Other real estate (income) expenses


110

90


12

12


122

102


    Amortization of intangibles


40

39


39

39


79

78


    Merger expenses


234

-


-

-


234

-


    Other


2,995

2,796


3,065

2,689


6,060

5,485


  Total non-interest expense


13,083

11,843


12,754

11,805


25,837

23,648


  Income before taxes


6,684

4,039


5,181

3,327


11,865

7,366


  Income tax expense


1,498

774


1,184

730


2,682

1,504


  Net income


$      5,186

$      3,265


$      3,997

$      2,597


$      9,183

$      5,862













  Per share data











     Net income, basic


$        0.68

$        0.43


$        0.52

$        0.34


$        1.20

$        0.77


     Net income, diluted


$        0.67

$        0.42


$        0.51

$        0.34


$        1.18

$        0.76













  Average number of shares outstanding - basic


7,663,964

7,617,266


7,647,537

7,600,450


7,665,796

7,608,232


  Average number of shares outstanding - diluted


7,786,757

7,695,476


7,767,978

7,679,771


7,775,231

7,684,913


  Shares outstanding period end


7,685,754

7,635,145


7,681,601

7,629,005


7,685,754

7,635,145













  Return on average assets


1.02 %

0.71 %


0.82 %

0.56 %


0.92 %

0.63 %


  Return on average common equity


13.68 %

9.82 %


11.05 %

7.91 %


12.39 %

8.87 %


  Return on average tangible common equity (non-GAAP)


15.18 %

11.08 %


12.31 %

8.95 %


13.78 %

10.02 %


  Net interest margin (non taxable equivalent)


3.19 %

2.92 %


3.12 %

2.78 %


3.16 %

2.85 %


  Net interest margin (taxable equivalent)


3.21 %

2.93 %


3.13 %

2.79 %


3.17 %

2.86 %


  Efficiency ratio1


66.04 %

72.75 %


69.23 %

77.15 %


67.59 %

74.88 %


1 Calculated by dividing non-interest expense excluding merger expenses by net interest income on tax equivalent basis and non interest income, excluding gain on sale of other assets and other non-recurring income.













 

FIRST COMMUNITY CORPORATION

Yields on Average Earning Assets and 

Rates on Average Interest-Bearing Liabilities











Three months ended June 30, 2025


Three months ended June 30, 2024



Average

Interest

Yield/


Average

Interest

Yield/



Balance

Earned/Paid

Rate


Balance

Earned/Paid

Rate


Assets









Earning assets









  Loans

$      1,263,027

$       18,174

5.77 %


$      1,178,342

$       16,400

5.60 %


  Non-taxable securities

46,160

344

2.99 %


48,982

359

2.95 %


  Taxable securities

459,313

3,976

3.47 %


442,205

4,114

3.74 %


  Int bearing deposits in other banks

155,861

1,679

4.32 %


79,956

1,057

5.32 %


  Fed funds sold

18

-

0.00 %


40

1

10.05 %


Total earning assets

$      1,924,379

$       24,173

5.04 %


$      1,749,525

$       21,931

5.04 %


Cash and due from banks

25,103




23,636




Premises and equipment

29,732




30,469




Goodwill and other intangibles

15,024




15,181




Other assets

52,594




55,810




Allowance for credit losses - investments

(24)




(29)




Allowance for credit losses - loans

(13,592)




(12,583)




Total assets

$      2,033,216




$      1,862,009













Liabilities









Interest-bearing liabilities









  Interest-bearing transaction accounts

$         347,536

$         1,064

1.23 %


$         303,825

$            809

1.07 %


  Money market accounts

460,865

3,494

3.04 %


400,656

3,344

3.36 %


  Savings deposits

110,193

73

0.27 %


113,620

113

0.40 %


  Time deposits

343,998

3,268

3.81 %


308,164

3,454

4.51 %


  Fed funds purchased

-

-

NA


6

-

0.00 %


  Securities sold under agreements to repurchase

110,233

681

2.48 %


68,591

497

2.91 %


  FHLB Advances

-

-

NA


55,604

712

5.15 %


  Other long-term debt

14,964

269

7.21 %


14,964

308

8.28 %


Total interest-bearing liabilities

$      1,387,789

$         8,849

2.56 %


$      1,265,430

$         9,237

2.94 %


Demand deposits

474,667




443,674




Allowance for credit losses - unfunded commitments

455




512




Other liabilities

18,208




18,664




Shareholders' equity

152,097




133,729




Total liabilities and shareholders' equity

$      2,033,216




$      1,862,009













Cost of deposits, including demand deposits



1.82 %




1.98 %


Cost of funds, including demand deposits



1.91 %




2.17 %


Net interest spread



2.48 %




2.10 %


Net interest income/margin


$       15,324

3.19 %



$       12,694

2.92 %


Net interest income/margin (tax equivalent)


$       15,377

3.21 %



$       12,733

2.93 %











 

FIRST COMMUNITY CORPORATION

Yields on Average Earning Assets and 

Rates on Average Interest-Bearing Liabilities











Six months ended June 30, 2025


Six months ended June 30, 2024



Average

Interest

Yield/


Average

Interest

Yield/



Balance

Earned/Paid

Rate


Balance

Earned/Paid

Rate


Assets









Earning assets









Loans

$      1,251,192

$       35,618

5.74 %


$      1,163,803

$       31,951

5.52 %


  Non-taxable securities

46,571

687

2.97 %


49,119

716

2.93 %


  Taxable securities

452,297

7,783

3.47 %


446,158

8,303

3.74 %


  Int bearing deposits in other banks

148,247

3,166

4.31 %


88,623

2,216

5.03 %


  Fed funds sold

40

1

5.04 %


51

1

3.94 %


Total earning assets

$      1,898,347

$       47,255

5.02 %


$      1,747,754

$       43,187

4.97 %


Cash and due from banks

24,868




24,010




Premises and equipment

29,802




30,471




Goodwill and other intangibles

15,043




15,201




Other assets

52,866




54,925




Allowance for credit losses - investments

(23)




(29)




Allowance for credit losses - loans

(13,406)




(12,470)




Total assets

$      2,007,497




$      1,859,862













Liabilities









Interest-bearing liabilities









  Interest-bearing transaction accounts

$         339,760

$         2,029

1.20 %


$         297,295

$         1,487

1.01 %


  Money market accounts

450,630

6,813

3.05 %


403,917

6,729

3.35 %


  Savings deposits

111,624

153

0.28 %


114,999

227

0.40 %


  Time deposits

338,835

6,514

3.88 %


296,049

6,480

4.40 %


  Fed funds purchased

1

-

0.00 %


4

-

0.00 %


  Securities sold under agreements to repurchase

120,449

1,494

2.50 %


77,823

1,106

2.86 %


  FHLB Advances

-

-

NA


69,670

1,770

5.11 %


  Other long-term debt

14,964

538

7.25 %


14,964

617

8.29 %


Total interest-bearing liabilities

$      1,376,263

$       17,541

2.57 %


$      1,274,721

$       18,416

2.91 %


Demand deposits

462,677




433,409




Allowance for credit losses - unfunded commitments

467




554




Other liabilities

18,658




18,323




Shareholders' equity

149,432




132,855




Total liabilities and shareholders' equity

$      2,007,497




$      1,859,862













Cost of deposits, including demand deposits



1.84 %




1.94 %


Cost of funds, including demand deposits



1.92 %




2.17 %


Net interest spread



2.45 %




2.06 %


Net interest income/margin


$       29,714

3.16 %



$       24,771

2.85 %


Net interest income/margin (tax equivalent)


$       29,818

3.17 %



$       24,850

2.86 %











 

The tables below provide a reconciliation of non‑GAAP measures to GAAP for the periods indicated:


















 

June

 30,



 

March

 31,



December

 31,



September

 30,



June

 30,


Tangible book value per common share



2025



2025



2024



2024



2024


Tangible common equity per common share (non‑GAAP)


$

18.28


$

17.56


$

16.93


$

16.78


$

15.85


Effect to adjust for intangible assets



1.95



1.96



1.97



1.98



1.99


Book value per common share (GAAP)


$

20.23


$

19.52


$

18.90


$

18.76


$

17.84


Tangible common shareholders' equity to tangible assets

















Tangible common equity to tangible assets (non‑GAAP)



6.92

%


6.66

%


6.66

%


6.65

%


6.47

%

Effect to adjust for intangible assets



0.68

%


0.69

%


0.72

%


0.72

%


0.75

%

Common equity to assets (GAAP)



7.60

%


7.35

%


7.38

%


7.37

%


7.22

%

 

Return on average tangible common equity

Three months ended

June 30,

Three months ended
March 31,


Six months ended

June 30,



2025


2024


2025

2024


2025


2024


Return on average tangible common equity (non-GAAP)

15.18

%

11.08

%

12.31

%

8.95

%

13.78

%

10.02

%

Effect to adjust for intangible assets

(1.50)

%

(1.26)

%

(1.26)

%

(1.04)

%

(1.39)

%

(1.15)

%

Return on average common equity (GAAP)

13.68

%

9.82

%

11.05

%

7.91

%

12.39

%

8.87

%

 

Three months ended

 Six months ended


June

30,


March

31,

June

30,

 

June 30,

Pre-tax, pre-provision earnings


2025



2025



2024


2025


2024

Pre-tax, pre-provision earnings (non‑GAAP)

$

6,447


$

5,618


$

4,493

$

12,065

$

7,949

Effect to adjust for pre-tax, pre-provision earnings


(1,261)



(1,621)



(1,228)


(2,882)


(2,087)

Net Income (GAAP)

$

5,186


$

3,997


$

3,265

$

9,183

$

5,862

 

Certain financial information presented above is determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). These non-GAAP financial measures include "Tangible book value per common share," "Tangible common shareholders' equity to tangible assets,"  "Return on average tangible common equity," and "Pre-tax, pre-provision earnings." 

  • "Tangible book value per common share" is defined as total equity reduced by recorded intangible assets divided by total common shares outstanding.
  • "Tangible common shareholders' equity to tangible assets" is defined as total common equity reduced by recorded intangible assets divided by total assets reduced by recorded intangible assets.
  • "Return on average tangible common equity" is defined as net income on an annualized basis divided by average total equity reduced by average recorded intangible assets. 
  • "Pre-tax, pre-provision earnings" is defined as net interest income plus non-interest income, reduced by non-interest expense.

Our management believes that these non-GAAP measures are useful because they enhance the ability of investors and management to evaluate and compare our operating results from period-to-period in a meaningful manner. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results as reported under GAAP.

 

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SOURCE First Community Corporation