Group 1 - First Community (FCCO) shares have increased by 0.6% over the past four weeks, closing at $23.71, with a mean price target of $29.67 indicating a potential upside of 25.1% [1] - The average price target consists of three estimates ranging from $29 to $30, with a standard deviation of $0.58, suggesting a strong agreement among analysts [2] - Analysts show a positive trend in earnings estimate revisions for FCCO, with two estimates moving higher in the last 30 days and no negative revisions, leading to a 3.1% increase in the Zacks Consensus Estimate [12] Group 2 - FCCO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside [13] - While price targets are often viewed as unreliable indicators, the direction implied by the consensus price target for FCCO appears to be a useful guide for potential price movement [10][11]

Financial Performance - Net income for the three months ended March 31, 2025, increased by $1.4 million to $4.0 million, or $0.51 diluted earnings per share, compared to $2.6 million, or $0.34 diluted earnings per share, for the same period in 2024[105]. - Total non-interest income increased by $798,000, primarily due to a $334,000 rise in mortgage banking income and a $448,000 increase in investment advisory fees and non-deposit commissions[105]. - Non-interest income increased by $798,000 to $4.0 million for the three months ended March 31, 2025, from $3.2 million during the same period in 2024[118]. - Total non-interest expense increased by $949,000, mainly due to a $556,000 rise in salaries and employee benefits and a $376,000 increase in other non-interest expenses[105]. - Non-interest expense increased by $949,000 to $12.8 million for the three months ended March 31, 2025, compared to $11.8 million for the same period in 2024[123]. Interest Income and Assets - Net interest income rose by $2.3 million, driven by a $126.0 million increase in average earning assets and a 0.34% increase in net interest margin[105]. - Net interest income increased by $2.3 million, or 19.2%, to $14.4 million for the three months ended March 31, 2025, compared to $12.1 million for the same period in 2024[107]. - Average earning assets were $1.9 billion for the three months ended March 31, 2025, compared to $1.7 billion in the same period of 2024[107]. - The yield on loans increased by 27 basis points to 5.71% during the three months ended March 31, 2025, from 5.44% during the same period in 2024[108]. - The net interest margin improved by 34 basis points to 3.12% during the three months ended March 31, 2025, compared to 2.78% during the same period in 2024[107]. Credit Losses and Provisions - Provision for credit losses for the three months ended March 31, 2025, was $437,000, reflecting a $473,000 increase in the allowance for credit losses on loans[105]. - The company experienced a $308,000 increase in provision for credit losses compared to the previous year[105]. - The allowance for credit losses on loans increased due to a $31.4 million rise in loans held-for-sale during the three months ended March 31, 2025[105]. - The total allowance for credit losses increased to $13.6 million as of March 31, 2025, from $13.1 million at December 31, 2024[130]. - The company incurred a provision for credit losses of $462,000 for loans during the three months ended March 31, 2025, compared to $214,000 for the same period in 2024[129]. Tax and Regulatory Compliance - The effective tax rate for the three months ended March 31, 2025, was 22.85%, compared to 21.94% for the same period in 2024[105]. - The bank is required to maintain a Common Equity Tier 1 capital ratio of 7.0%, a Tier 1 capital ratio of 8.5%, and a total capital ratio of 10.5% under Basel III regulations[183]. - Common Equity Tier 1 capital ratio stands at 12.90%, significantly above the required 4.5%[185]. - Total capital ratio is reported at 13.99%, exceeding the minimum requirement of 8%[189]. - The leverage ratio is 8.45%, well above the required 4%[189]. Shareholder Equity and Dividends - Total shareholders' equity increased by $5.5 million, or 3.8%, to $150.0 million as of March 31, 2025, from $144.5 million at December 31, 2024[165]. - The increase in shareholders' equity was attributed to a $2.9 million rise in retained earnings from $4.0 million net income, less $1.1 million in dividends, and a $2.5 million improvement in accumulated other comprehensive loss[165]. - A cash dividend of $0.15 per common share has been approved for Q1 2025, payable on May 20, 2025[191]. Loan and Deposit Growth - Average loans increased by $90.0 million, or 7.8%, to $1.2 billion for the three months ended March 31, 2025, from $1.1 billion during the same period in 2024[108]. - Total assets increased by $81.4 million, or 4.2%, to $2.0 billion at March 31, 2025, primarily due to increases in interest-bearing bank balances and loans held-for-investment[139]. - Total deposits increased by $49.8 million, or 3.0%, to $1.7 billion at March 31, 2025[157]. - Pure deposits increased by $38.6 million, or 2.8%, to $1.41 billion at March 31, 2025[157]. - Demand deposit accounts accounted for 27.2% of total deposits, with an amount of $468.9 million as of March 31, 2025[160]. Market and Economic Conditions - The target range of federal funds was reduced to 4.25% - 4.50% at March 31, 2025, down from 5.25% - 5.50% at March 31, 2024[100]. - The company is liability sensitive, with projected declines in net interest income of -16.18% and -13.27% for +400 basis points change in interest rates at March 31, 2025, and December 31, 2024, respectively[172]. - The bank's capital ratios could be adversely impacted by future credit losses related to an economic recession[189].

Group 1 - First Community (FCCO) shares have increased by 5.1% over the past four weeks, closing at $23.70, with a mean price target of $29.67 indicating a potential upside of 25.2% [1] - The average price targets range from a low of $29 to a high of $30, with a standard deviation of $0.58, suggesting a relatively high agreement among analysts [2] - Analysts are optimistic about FCCO's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which has historically correlated with stock price movements [4][11] Group 2 - The Zacks Consensus Estimate for the current year has increased by 1.1% over the past month, with one estimate rising and no negative revisions [12] - FCCO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside [13] - While consensus price targets may not be entirely reliable, the direction they imply appears to be a good guide for potential price movement [13]

Financial Performance - Net income for Q1 2025 was $3.997 million, with diluted EPS of $0.51, compared to $2.597 million and $0.34 in Q1 2024[6] - Net income for Q1 2025 was $3,997 thousand, a decrease from $4,232 thousand in Q4 2024 but an increase from $2,597 thousand in Q1 2024, showing a year-over-year growth of 54.0%[27] - Return on average assets for Q1 2025 was 0.82%, down from 0.86% in Q4 2024 but up from 0.56% in Q1 2024[27] - Return on average common equity for Q1 2025 was 11.05%, a decrease from 11.71% in Q4 2024 but an increase from 7.91% in Q1 2024[27] - Pre-tax, pre-provision earnings for Q1 2025 were $5,618 thousand, compared to $3,456 thousand in Q1 2024, representing a year-over-year increase of 62.7%[29] Revenue and Income - Non-interest income for Q1 2025 was $3.982 million, up from $3.184 million in Q1 2024[15] - Total non-interest income for Q1 2025 was $3,982 thousand, up from $3,608 thousand in Q4 2024 and $3,184 thousand in Q1 2024, indicating a year-over-year growth of 24.9%[27] - Investment advisory revenue was $1.806 million, with assets under management (AUM) at $892.8 million[17] - Interest income for Q1 2025 was $23,082 thousand, a slight increase from $23,074 thousand in Q4 2024 and a significant increase from $21,256 thousand in Q1 2024, representing a year-over-year growth of 8.6%[27] - Net interest income after provision for credit losses for Q1 2025 was $13,953 thousand, compared to $13,615 thousand in Q4 2024 and $11,948 thousand in Q1 2024, reflecting a year-over-year increase of 16.7%[27] Asset and Deposit Growth - Total deposits increased by $49.8 million to $1.726 billion, reflecting a 12.1% annualized growth rate[12] - Total deposits rose to $1,725,718 thousand as of March 31, 2025, compared to $1,675,901 thousand as of December 31, 2024, reflecting an increase of 2.9%[24] - Total assets increased to $2,039,371 thousand as of March 31, 2025, up from $1,958,021 thousand as of December 31, 2024, representing a growth of 4.9%[24] - Average total assets for the three months ended March 31, 2025, were $1,981,493 thousand, up from $1,954,772 thousand for the three months ended December 31, 2024, indicating a growth of 1.4%[25] Loan Performance - Total loans grew by $31.4 million to $1.252 billion, representing a 10.4% annualized growth rate[11] - The yield on the loan portfolio increased to 5.71% in Q1 2025, compared to 5.65% in Q4 2024[11] - Average loans (including loans held-for-sale) for the three months ended March 31, 2025, were $1,239,225 thousand, up from $1,211,880 thousand for the three months ended December 31, 2024, reflecting a growth of 2.2%[25] - The loan to deposit ratio (including loans held-for-sale) was 72.96% as of March 31, 2025, slightly down from 73.41% as of December 31, 2024[24] Asset Quality - Non-performing assets were 0.03% of total assets, with net recoveries of $11 thousand during Q1 2025[9] - Nonperforming assets decreased to $658 thousand as of March 31, 2025, from $810 thousand as of December 31, 2024, showing a decline of 18.8%[25] - The allowance for credit losses on loans was $13,608 thousand as of March 31, 2025, compared to $13,135 thousand as of December 31, 2024, an increase of 3.6%[24] Capital and Efficiency - The Tier 1 capital ratio was 12.90% as of March 31, 2025, unchanged from December 31, 2024[24] - The equity to assets ratio was 7.35% as of March 31, 2025, slightly down from 7.38% as of December 31, 2024[24] - The efficiency ratio for Q1 2025 was 69.23%, compared to 66.67% in Q4 2024 and 77.15% in Q1 2024, indicating improved operational efficiency year-over-year[27] Dividends and Shareholder Value - Cash dividend of $0.15 per common share was declared, marking the 93rd consecutive quarter of dividends[7] - Book value per common share increased to $19.52 as of March 31, 2025, from $18.90 as of December 31, 2024, a rise of 3.3%[24] - The tangible book value per common share increased to $17.56 in Q1 2025 from $15.51 in Q1 2024, reflecting a year-over-year increase of 13.3%[29] Profitability Metrics - Net interest margin expanded by 13 basis points to 3.13% in Q1 2025, compared to 2.79% in Q1 2024[13] - The net interest margin (non-taxable equivalent) for Q1 2025 was 3.12%, up from 2.78% in Q1 2024, indicating improved profitability on earning assets[28] - Non-interest expense rose to $12.754 million, an increase of $928 thousand from Q4 2024[19]

Core Insights - First Community (FCCO) reported revenue of $18.37 million for the quarter ended March 2025, reflecting a year-over-year increase of 20.4% [1] - Earnings per share (EPS) for the quarter was $0.51, up from $0.34 in the same quarter last year, indicating a strong performance [1] - The reported revenue exceeded the Zacks Consensus Estimate of $17.44 million by 5.34%, and the EPS also surpassed the consensus estimate of $0.47 by 8.51% [1] Financial Metrics - The net interest margin (taxable equivalent) was reported at 3.1%, matching the average estimate from two analysts [4] - The efficiency ratio stood at 69.2%, better than the average estimate of 71.4% from two analysts [4] - Total non-interest income reached $3.98 million, exceeding the average estimate of $3.55 million based on two analysts [4] Stock Performance - Over the past month, shares of First Community have returned -1.9%, compared to a -6.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Performance - First Community (FCCO) reported quarterly earnings of $0.51 per share, exceeding the Zacks Consensus Estimate of $0.47 per share, and up from $0.34 per share a year ago, representing an earnings surprise of 8.51% [1] - The company posted revenues of $18.37 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.34%, compared to $15.26 million in the same quarter last year [2] - Over the last four quarters, First Community has consistently surpassed consensus EPS and revenue estimates [2] Stock Performance - First Community shares have declined approximately 7.4% since the beginning of the year, while the S&P 500 has seen a decline of 10.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.56 on revenues of $18.31 million, and for the current fiscal year, it is $2.28 on revenues of $74.51 million [7] - The outlook for the industry, specifically the Banks - Southeast sector, is favorable, ranking in the top 29% of over 250 Zacks industries, which historically outperform the bottom 50% by more than 2 to 1 [8]

Group 1: Stock Recommendations - OneWater Marine Inc. (ONEW) is a recreational boat retailer with a Zacks Rank 1 and a 11.4% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days. The company has a P/E ratio of 10.99, lower than the industry average of 13.70, and possesses a Value Score of A [1] - First Community Corporation (FCCO) is a bank holding company for First Community Bank, also carrying a Zacks Rank 1. The Zacks Consensus Estimate for its current year earnings has increased by 9.6% over the last 60 days. The company has a P/E ratio of 9.72, compared to the industry average of 11.10, and has a Value Score of B [2] - Nextracker Inc. (NXT) is an energy solutions company focused on solar projects, holding a Zacks Rank 1. The Zacks Consensus Estimate for its current year earnings has risen by 19.7% over the last 60 days. Nextracker has a P/E ratio of 11.38, significantly lower than the S&P 500 average of 20.49, and has a Value Score of B [3]

Core Viewpoint - First Community (FCCO) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, driven by institutional investors who adjust their valuations based on these estimates [4][6]. - For First Community, the rising earnings estimates and the upgrade signal an improvement in the company's business fundamentals, likely leading to increased stock prices [5][10]. Earnings Estimate Revisions - First Community is projected to earn $2.28 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 26% [8]. - Over the past three months, the Zacks Consensus Estimate for First Community has risen by 9.6%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of First Community to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting strong potential for near-term price appreciation [10].

Company Operations - The company operates 21 full-service offices across South Carolina and Georgia, focusing on small to medium-sized businesses and individuals [263]. Income Sources - The primary source of income is net interest income, which is the difference between interest earned on loans and investments and interest paid on deposits and borrowings [264]. - The company intends to allocate a substantial percentage of its earning assets into the loan portfolio due to higher interest yields compared to other assets [265]. Credit Losses - The allowance for credit losses is assessed quarterly, with adjustments recorded in the provision for credit losses, reflecting management's estimates of expected losses [271]. - As of December 31, 2024, the company held an allowance for credit losses for its investment securities, loans, and unfunded commitments [271]. - The company adopted FASB ASU 2016-13 on January 1, 2023, which changed the methodology for determining the allowance for credit losses [270]. - The provision for credit losses was $809 thousand for 2024, down from $1.1 million in 2023, reflecting improved economic forecasts [286]. - The allowance for credit losses on loans increased to $13.1 million at December 31, 2024, up from $12.3 million at December 31, 2023 [316]. - The total allowance for credit losses (ACL) was $13.6 million at December 31, 2024, compared to $12.9 million at December 31, 2023 [316]. - The allowance for credit losses is based on a collective methodology using a non-discounted cash flow approach, with adjustments for qualitative risk factors [430]. Financial Performance - Net income for the year ended December 31, 2024, was $14.0 million, or $1.81 diluted earnings per common share, compared to $11.8 million, or $1.55 diluted earnings per common share for 2023, reflecting a $2.1 million increase [286]. - Net interest income increased by $3.1 million due to a $154.9 million rise in average earning assets, despite a nine basis point decline in net interest margin [286]. - Non-interest income rose by $3.6 million, driven by increases in mortgage banking income ($962 thousand) and investment advisory fees ($1.7 million) [288]. - Non-interest expenses increased by $4.3 million, primarily due to a $3.4 million rise in salaries and employee benefits [288]. - Total assets as of December 31, 2024, were $1,958,021 thousand, up from $1,827,688 thousand in 2023 [282]. - Total deposits increased to $1,675,901 thousand in 2024, compared to $1,511,001 thousand in 2023, marking a growth of 10.9% [282]. - The efficiency ratio for 2024 was 71.56%, slightly up from 71.23% in 2023, indicating a marginal increase in operating expenses relative to revenue [285]. - Return on average common equity improved to 10.17% in 2024 from 9.59% in 2023, reflecting better profitability [285]. - Book value per common share increased to $18.90 in 2024, up from $17.23 in 2023, indicating a solid growth in shareholder equity [285]. Asset and Loan Growth - Average loans increased by $136.9 million, or 13.1%, to $1.2 billion for the twelve months ended December 31, 2024, representing 66.3% of average earning assets [293]. - Total gross loans reached $1,220.5 million at December 31, 2024, up from $1,134.0 million at December 31, 2023 [370]. - The loan to deposit ratio (including loans held-for-sale) averaged 74.4% during 2024, compared to 73.2% during 2023 [293]. - The average loan portfolio (including held-for-sale) was $1.2 billion in 2024, compared to $1.0 billion in 2023 [369]. Interest Rates and Yields - The yield on loans increased by 0.62% to 5.61% during the twelve months ended December 31, 2024, from 4.99% during the same period in 2023 [294]. - The cost of interest-bearing liabilities was 2.88% during the twelve months ended December 31, 2024, compared to 2.06% during the same period in 2023 [296]. - The yield on earning assets for the twelve months ended December 31, 2024, was 5.00%, compared to 4.45% for the same period in 2023 [295]. - The effective tax rate was 21.3% during the twelve months ended December 31, 2023, compared to 20.6% during the same period in 2022 [290]. Non-Interest Income - Non-interest income for the twelve months ended December 31, 2024, increased to $14.0 million from $10.4 million in 2023, marking a $3.6 million increase [344]. - Mortgage banking income increased by $962 thousand to $2.4 million for the twelve months ended December 31, 2024, compared to $1.4 million for the same period in 2023 [346]. - Investment advisory fees rose by $1.7 million to $6.2 million during the twelve months ended December 31, 2024, compared to $4.5 million in the same period in 2023 [348]. Non-Performing Assets - The non-performing asset ratio was 0.04% of total assets, with non-performing assets totaling $810 thousand at December 31, 2024, compared to $864 thousand at December 31, 2023 [319]. - The non-performing asset ratio improved to 0.05% of total assets at December 31, 2023, down from 0.35% at December 31, 2022, with non-performing assets totaling $864 thousand [325]. - Non-accrual loans decreased significantly to $27 thousand at December 31, 2023, from $4.9 million at December 31, 2022 [325]. Shareholder Equity - Total shareholders' equity increased by $13.4 million, or 10.3%, to $144.5 million at December 31, 2024, from $131.1 million at December 31, 2023 [395]. - Shareholders' equity as a percentage of total assets rose to 7.4% at December 31, 2024, compared to 7.2% at December 31, 2023, due to total asset growth of $130.3 million, or 7.1% [395]. - The company reported a net income of $14.0 million for the year, with $4.4 million paid in dividends, resulting in a $9.6 million increase in retained earnings [395]. Tax and Regulatory Matters - The company is subject to complex income tax laws, which may lead to material differences in actual results compared to estimates [275]. - The effective tax rate for the year ended December 31, 2024, was 21.5%, compared to 21.3% for 2023 [365]. Liquidity and Capital Management - The company maintained adequate liquidity and capital, believing it will be sufficient to fund operations for at least the next 12 months [408]. - The Company has remaining credit availability in excess of $573.1 million, compared to uninsured deposits of $437.1 million [412]. - The Bank maintains federal funds purchased lines totaling $77.5 million and $10.0 million through the Federal Reserve Discount Window, with no utilization as of December 31, 2024, and 2023 [412].

Core Viewpoint - First Community (FCCO) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Estimate Revisions - The upward trend in earnings estimate revisions reflects growing analyst optimism regarding First Community's earnings prospects, which is expected to positively impact its stock price [2]. - The Zacks Rank system indicates strong agreement among analysts in raising earnings estimates, leading to a considerable increase in consensus estimates for both the current quarter and the full year [3]. Current-Quarter Estimates - For the current quarter, First Community is expected to earn $0.47 per share, representing a year-over-year increase of +38.24% [4]. - Over the past 30 days, the Zacks Consensus Estimate for First Community has risen by 8.14%, with two estimates moving higher and no negative revisions [4]. Current-Year Estimates - The expected earnings for the full year are $2.28 per share, reflecting a change of +25.97% from the previous year [5]. - The consensus estimate for the current year has increased by 9.64%, with two estimates moving higher and no negative revisions [5]. Zacks Rank - First Community has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, indicating strong potential for outperformance [6]. - Research shows that stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500 [6]. Investment Outlook - The strong estimate revisions have led to a 13.9% increase in First Community's stock price over the past four weeks, suggesting further upside potential [7].