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This is Why First Community (FCCO) is a Great Dividend Stock
ZACKS· 2025-09-26 16:46
Company Overview - First Community (FCCO) is based in Lexington and operates in the Finance sector, with a year-to-date share price change of 20.46% [3] - The company currently pays a dividend of $0.16 per share, resulting in a dividend yield of 2.21%, which is slightly below the Banks - Southeast industry's yield of 2.29% and above the S&P 500's yield of 1.54% [3] Dividend Performance - The current annualized dividend of $0.64 represents a 10.3% increase from the previous year [4] - Over the past five years, First Community has increased its dividend three times, achieving an average annual increase of 5.74% [4] - The company's current payout ratio is 27%, indicating that it paid out 27% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for FCCO's earnings in 2025 is $2.56 per share, reflecting an expected increase of 41.44% from the previous year [5] Investment Appeal - FCCO is viewed as an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [6]
Here's Why Momentum in First Community (FCCO) Should Keep going
ZACKS· 2025-09-24 13:51
Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in stock prices for short-term investing, highlighting that while trends can be profitable, ensuring their longevity is challenging [1][2]. Group 1: Stock Performance - First Community (FCCO) has shown a solid price increase of 16.3% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also maintained a price increase of 7.2% over the last four weeks, suggesting that the upward trend is still intact [5]. - FCCO is currently trading at 95% of its 52-week high-low range, indicating a potential breakout [6]. Group 2: Fundamental Strength - FCCO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The article suggests using the "Recent Price Strength" screen to identify stocks like FCCO that are on an uptrend supported by strong fundamentals [3][8]. - It also mentions that there are over 45 Zacks Premium Screens available for investors to find stocks that align with their investment strategies [8].
First Community (FCCO) is on the Move, Here's Why the Trend Could be Sustainable
ZACKS· 2025-09-08 21:30
Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for profitable short-term investing, highlighting the need for sound fundamentals and positive earnings estimates to maintain momentum. Group 1: Investment Strategy - The trend is a crucial factor in short-term investing, and confirming its sustainability is essential for profitability [1][2] - A predefined "Recent Price Strength" screen can help identify stocks on an uptrend supported by strong fundamentals [3] Group 2: Company Analysis - First Community (FCCO) - First Community (FCCO) has shown a solid price increase of 22.7% over the past 12 weeks, indicating investor confidence in its potential upside [4] - The stock has also increased by 10.7% over the last four weeks, suggesting that the upward trend is still intact [5] - FCCO is trading at 95.3% of its 52-week high-low range, indicating a potential breakout [6] Group 3: Fundamental Strength - FCCO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6] - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7] Group 4: Additional Insights - The price trend for FCCO is expected to remain positive, and there are other stocks that also meet the criteria of the "Recent Price Strength" screen [8] - The Zacks Rank 1 stocks have historically generated an average annual return of +25% since 1988, indicating a strong track record for this rating [7]
Expansion Into Metro Atlanta Looks Promising For First Community Corporation
Seeking Alpha· 2025-08-22 12:48
Core Insights - First Community Corporation (NASDAQ: FCCO) reported record-breaking Q2 2025 results, with assets under management exceeding $1 billion for the first time and earnings of $0.68 per share [1] Financial Performance - The company achieved a significant milestone by surpassing $1 billion in assets under management, indicating strong growth and investor confidence [1] - Earnings per share reached $0.68, reflecting positive financial performance in the second quarter [1]
Recent Price Trend in First Community (FCCO) is Your Friend, Here's Why
ZACKS· 2025-08-20 13:50
Core Viewpoint - The article emphasizes the importance of identifying and sustaining stock price trends for successful short-term investing, highlighting the need for strong fundamentals and positive earnings revisions to maintain momentum [1][2]. Group 1: Stock Performance - First Community (FCCO) has shown a solid price increase of 10.6% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - Over the last four weeks, FCCO's price has increased by 3.4%, suggesting that the upward trend is still intact [5]. - FCCO is currently trading at 80% of its 52-week high-low range, indicating a potential breakout opportunity [6]. Group 2: Fundamental Strength - FCCO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. Group 3: Investment Strategy - The article suggests that investors can utilize the "Recent Price Strength" screen to identify stocks like FCCO that are on an upward trend supported by strong fundamentals [3][8]. - There are over 45 Zacks Premium Screens available for investors to find stocks that align with their investment strategies [8].
First munity (FCCO) - 2025 Q2 - Quarterly Report
2025-08-08 18:19
```markdown [PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements for First Community Corporation and its subsidiary [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Metric (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Total Assets | $2,046,265 | $1,958,021 | +$88,244 | | Total Liabilities | $1,890,765 | $1,813,527 | +$77,238 | | Total Shareholders' Equity | $155,500 | $144,494 | +$11,006 | | Net Loans Held-for-Investment | $1,246,725 | $1,207,407 | +$39,318 | | Total Deposits | $1,754,041 | $1,675,901 | +$78,140 | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Three Months Ended June 30 | Metric (in thousands, except per share) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------- | | Total interest income | $24,173 | $21,931 | +$2,242 | | Total interest expense | $8,849 | $9,237 | -$388 | | Net interest income | $15,324 | $12,694 | +$2,630 | | (Release of) provision for credit losses | ($237) | $454 | -$691 | | Total non-interest income | $4,206 | $3,642 | +$564 | | Total non-interest expense | $13,083 | $11,843 | +$1,240 | | Net income | $5,186 | $3,265 | +$1,921 | | Basic earnings per common share | $0.68 | $0.43 | +$0.25 | | Diluted earnings per common share | $0.67 | $0.42 | +$0.25 | Six Months Ended June 30 | Metric (in thousands, except per share) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------- | | Total interest income | $47,255 | $43,187 | +$4,068 | | Total interest expense | $17,541 | $18,416 | -$875 | | Net interest income | $29,714 | $24,771 | +$4,943 | | Provision for credit losses | $200 | $583 | -$383 | | Total non-interest income | $8,188 | $6,826 | +$1,362 | | Total non-interest expense | $25,837 | $23,648 | +$2,189 | | Net income | $9,183 | $5,862 | +$3,321 | | Basic earnings per common share | $1.20 | $0.77 | +$0.43 | | Diluted earnings per common share | $1.18 | $0.76 | +$0.42 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Three Months Ended June 30 | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | | Net income | $5,186 | $3,265 | +$1,921 | | Other comprehensive income | $1,110 | $154 | +$956 | | Comprehensive income | $6,296 | $3,419 | +$2,877 | Six Months Ended June 30 | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | | Net income | $9,183 | $5,862 | +$3,321 | | Other comprehensive income | $3,596 | $903 | +$2,693 | | Comprehensive income | $12,779 | $6,765 | +$6,014 | [Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Metric (in thousands) | Metric (in thousands) | Balance Dec 31, 2024 | Net Income | Other Comprehensive Income | Dividends | Balance Jun 30, 2025 | | :-------------------- | :------------------- | :--------- | :------------------------- | :-------- | :------------------- | | Total Shareholders' Equity | $144,494 | $9,183 | $3,596 | ($2,296) | $155,500 | - Total shareholders' equity increased to **$155,500 thousand** at June 30, 2025, from **$144,494 thousand** at December 31, 2024, driven by net income, other comprehensive income, and stock-based compensation/dividend reinvestment, partially offset by common stock dividends[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Metric (in thousands) | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | | Net cash from operating activities | $6,203 | $4,410 | +$1,793 | | Net cash from investing activities | ($49,460) | ($35,899) | -$13,561 | | Net cash from financing activities | $76,897 | $48,305 | +$28,592 | | Net increase in cash and cash equivalents | $33,640 | $16,816 | +$16,824 | | Cash and cash equivalents at end of period | $183,468 | $111,511 | +$71,957 | - Net cash used in investing activities increased to **$49,460 thousand** in 2025 from **$35,899 thousand** in 2024, primarily due to increased loan origination and investment security purchases[20](index=20&type=chunk) - Net cash provided by financing activities increased to **$76,897 thousand** in 2025 from **$48,305 thousand** in 2024, mainly due to an increase in deposit accounts[20](index=20&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [Note 1 - Nature of Business and Basis of Presentation](index=10&type=section&id=Note%201%20-%20Nature%20of%20Business%20and%20Basis%20of%20Presentation) - The financial statements are unaudited and present the financial position of First Community Corporation and its wholly-owned subsidiary, First Community Bank[21](index=21&type=chunk) - The Company adopted ASU 2023-07 (Segment Reporting) effective January 1, 2024[23](index=23&type=chunk) - ASU 2023-09 (Income Taxes) is effective for annual periods beginning after December 15, 2024, with early adoption permitted[24](index=24&type=chunk) [Note 2 - Earnings Per Common Share](index=10&type=section&id=Note%202%20-%20Earnings%20Per%20Common%20Share) - Basic earnings per share is calculated by dividing net income by the weighted-average shares of common stock outstanding during the period, excluding non-vested restricted shares[26](index=26&type=chunk) - Dilutive earnings per share is calculated by dividing net income by the weighted-average shares of common stock outstanding during the period plus the maximum dilutive effect on common stock issuable upon exercise of stock options or vesting of restricted stock units[26](index=26&type=chunk) Metric (in thousands, except per share) | Metric (in thousands, except per share) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income available to common shareholders | $9,183 | $5,862 | $5,186 | $3,265 | | Basic shares | 7,656 | 7,608 | 7,664 | 7,617 | | Diluted common shares outstanding | 7,775 | 7,685 | 7,787 | 7,695 | | Basic earnings per common share | $1.20 | $0.77 | $0.68 | $0.43 | | Diluted earnings per common share | $1.18 | $0.76 | $0.67 | $0.42 | [Note 3 - Investment Securities](index=11&type=section&id=Note%203%20-%20Investment%20Securities) - Available-for-sale (AFS) securities fair value increased to **$302,627 thousand** at June 30, 2025, from **$279,582 thousand** at December 31, 2024[29](index=29&type=chunk) - Held-to-maturity (HTM) securities amortized cost decreased to **$201,742 thousand** at June 30, 2025, from **$209,413 thousand** at December 31, 2024[30](index=30&type=chunk) - Gross unrealized losses on AFS securities decreased to **$16,486 thousand** at June 30, 2025, from **$20,010 thousand** at December 31, 2024[29](index=29&type=chunk) - No allowance for credit loss was recorded for AFS securities at June 30, 2025, or December 31, 2024[33](index=33&type=chunk) - The allowance for credit losses on HTM state and local government securities decreased to **$19 thousand** at June 30, 2025, from **$23 thousand** at December 31, 2024[38](index=38&type=chunk) - All mortgage-backed securities (MBS) held by the Company are issued by government-sponsored corporations and have a long history of no credit losses[41](index=41&type=chunk) Held-to-Maturity Securities by Credit Quality (in thousands) | Rating | June 30, 2025 | December 31, 2024 | | :------------ | :------------ | :---------------- | | Aaa | $145,831 | $149,064 | | Aa1/Aa2/Aa3 | $50,880 | $55,318 | | A1/A2 | $5,050 | $5,055 | | Less: Allowance for Credit Losses | $19 | $23 | [Note 4 - Loans](index=15&type=section&id=Note%204%20-%20Loans) - Total loans, net of deferred fees and costs, increased to **$1,260,055 thousand** at June 30, 2025, from **$1,220,542 thousand** at December 31, 2024[46](index=46&type=chunk) - Commercial real estate mortgage loans constitute the largest segment, totaling **$818,706 thousand** (**64.9%**) at June 30, 2025[188](index=188&type=chunk) Allowance for Credit Losses - Loans (in thousands) | Metric | Balance Dec 31, 2024 | Net Loan Recoveries (Charge-offs) | Provision for Credit Losses | Balance Jun 30, 2025 | | :----- | :------------------- | :-------------------------------- | :-------------------------- | :------------------- | | Total | $13,135 | $1 | $194 | $13,330 | - Non-accrual loans decreased to **$208 thousand** at June 30, 2025, from **$217 thousand** at December 31, 2024, for residential mortgages[58](index=58&type=chunk) - The allowance for credit losses for unfunded loan commitments increased to **$490 thousand** at June 30, 2025, from **$480 thousand** at December 31, 2024[61](index=61&type=chunk)[63](index=63&type=chunk) [Note 5 - Fair Value Measurement](index=22&type=section&id=Note%205%20-%20Fair%20Value%20Measurement) - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[66](index=66&type=chunk) - Available-for-sale securities, loans held for sale, and derivative financial instruments are primarily Level 2[78](index=78&type=chunk) - Net loans receivable and other investments at cost are primarily Level 3[76](index=76&type=chunk) - Other real estate owned (OREO) is measured on a non-recurring basis using Level 3 inputs (appraisals discounted for sales commissions and holding costs)[80](index=80&type=chunk)[82](index=82&type=chunk) [Note 6 - Deposits](index=26&type=section&id=Note%206%20-%20Deposits) - Total deposits increased to **$1,754,041 thousand** at June 30, 2025, from **$1,675,901 thousand** at December 31, 2024[83](index=83&type=chunk) Deposit Composition (in thousands) | Deposit Type | June 30, 2025 Amount | June 30, 2025 % of Deposits | December 31, 2024 Amount | December 31, 2024 % of Deposits | | :-------------------------------- | :------------------- | :-------------------------- | :----------------------- | :------------------------------ | | Non-interest bearing demand deposits | $475,889 | 27.1% | $462,717 | 27.6% | | Interest bearing demand deposits and money market accounts | $824,921 | 47.0% | $770,595 | 46.0% | | Savings | $107,798 | 6.1% | $113,928 | 6.8% | | Time deposits ≤ $250,000 | $251,772 | 14.4% | $239,643 | 14.3% | | Time deposits > $250,000 | $93,661 | 5.3% | $89,018 | 5.3% | | Total | $1,754,041 | 100.0% | $1,675,901 | 100.0% | - Brokered deposits of **$10.4 million** were held at June 30, 2025, and December 31, 2024[83](index=83&type=chunk) - Total uninsured deposits were **$570.5 million** at June 30, 2025, with **$87.9 million** secured or collateralized[201](index=201&type=chunk) [Note 7 - Reportable Segments](index=27&type=section&id=Note%207%20-%20Reportable%20Segments) - The Company operates four reportable segments: Commercial and Retail Banking, Mortgage Banking, Investment Advisory and Non-Deposit, and Corporate[84](index=84&type=chunk)[86](index=86&type=chunk) Segment Net Income (in thousands) | Segment | 3 Months Ended June 30, 2025 Net Income | 6 Months Ended June 30, 2025 Net Income | | :---------------------------- | :-------------------------------------- | :-------------------------------------- | | Commercial and Retail Banking | $3,978 | $6,895 | | Mortgage Banking | $1,074 | $2,204 | | Investment Advisory and Non-Deposit | $641 | $1,287 | | Corporate | $1,287 | $2,014 | - Total assets for Commercial and Retail Banking were **$1,889,795 thousand** at June 30, 2025[88](index=88&type=chunk) [Note 8 - Derivative Financial Instruments](index=28&type=section&id=Note%208%20-%20Derivative%20Financial%20Instruments) - The Company uses interest rate swaps as fair value hedges to convert fixed-rate loans and securities to synthetic floating rates[89](index=89&type=chunk)[90](index=90&type=chunk) - A Loan Pay-Fixed Swap Agreement (notional **$150.0 million**) hedges fixed-rate loans, paying **3.58%** fixed and receiving overnight SOFR, maturing May 2026[89](index=89&type=chunk) - An Investment Pay-Fixed Swap Agreement (notional **$19.8 million**) hedges investment securities, paying **3.67%** fixed and receiving USD-SOFR-OIS Compound, maturing April 2038[90](index=90&type=chunk) - Total notional amount of interest rate swaps was **$169.8 million** at June 30, 2025, with a positive fair value of **$280 thousand**[91](index=91&type=chunk) [Note 9 - Leases](index=29&type=section&id=Note%209%20-%20Leases) - The Company has operating leases for three facilities with maturities ranging from May 2027 to December 2038[92](index=92&type=chunk) - Right-of-use assets were **$2,336 thousand** and lease liabilities were **$2,511 thousand** at June 30, 2025[92](index=92&type=chunk) - Weighted average remaining lease term was **10.95 years** with a weighted average discount rate of **4.20%** at June 30, 2025[92](index=92&type=chunk) [Note 10 - Accumulated Other Comprehensive Loss](index=29&type=section&id=Note%2010%20-%20Accumulated%20Other%20Comprehensive%20Loss) - Accumulated other comprehensive loss improved to (**$21,863 thousand**) at June 30, 2025, from (**$25,459 thousand**) at December 31, 2024[95](index=95&type=chunk) - This improvement was driven by **$3,010 thousand** in other comprehensive income from available-for-sale securities and **$662 thousand** from amortization of unrealized losses on transferred held-to-maturity securities, partially offset by a **$76 thousand** unrealized loss on investment hedge[95](index=95&type=chunk) [Note 11 - Subsequent Events](index=30&type=section&id=Note%2011%20-%20Subsequent%20Events) - On July 13, 2025, the Company entered into a merger agreement with Signature Bank of Georgia[97](index=97&type=chunk) - Signature Bank shareholders will receive **0.6410 shares** of First Community Corporation common stock per share[98](index=98&type=chunk) - At June 30, 2025, Signature Bank had approximately **$266.0 million** in total assets, **$205.9 million** in total loans, and **$206.0 million** in total deposits[99](index=99&type=chunk) - The pro forma combined company is projected to have approximately **$2.3 billion** in total assets, **$1.5 billion** in total loans, and **$2.0 billion** in total deposits[99](index=99&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's analysis of financial condition and operations, discussing performance, trends, and future outlook [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS](index=31&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) - The report contains forward-looking statements subject to risks and uncertainties, including credit losses, real estate market weaknesses, regulatory restrictions, interest rate changes, and competitive pressures[102](index=102&type=chunk) - Specific risks related to the pending Signature Bank merger include integration difficulties, unexpected costs, potential revenue shortfalls, deposit/customer attrition, and failure to obtain approvals[109](index=109&type=chunk) - The Company undertakes no obligation to publicly update or revise forward-looking statements, except as required by applicable law[104](index=104&type=chunk) [Overview](index=32&type=section&id=Overview) - The Company's primary income sources are interest from loans and investments, funded by deposits and borrowings[105](index=105&type=chunk) - Key performance measures include net interest income (difference between interest earned and paid) and the spread between asset yield and liability cost[105](index=105&type=chunk) - An allowance for credit losses is maintained to cover expected uncollectible loans, established by recording a provision for or release of credit losses against earnings[105](index=105&type=chunk) [Industry Trends](index=33&type=section&id=Industry%20Trends) - Federal Reserve monetary policies, including interest rate changes and balance sheet reduction, significantly impact bank operating results, loan demand, and net interest margins[110](index=110&type=chunk) - Lower interest rates, initiated in September 2024, may support loan demand but could compress net interest margins[110](index=110&type=chunk) - The recently enacted One Big Beautiful Bill Act (OBBBA) on July 4, 2025, is being evaluated for its impact on deferred tax assets/liabilities and effective tax rate, with no material impact currently expected for 2025[111](index=111&type=chunk) [Proposed Merger with Signature Bank of Georgia](index=33&type=section&id=Proposed%20Merger%20with%20Signature%20Bank%20of%20Georgia) - On July 13, 2025, the Company entered into a merger agreement with Signature Bank of Georgia[112](index=112&type=chunk) - Signature Bank common stock will be converted into **0.6410 shares** of First Community Corporation common stock[113](index=113&type=chunk) - At June 30, 2025, Signature Bank had approximately **$266.0 million** in total assets, **$205.9 million** in total loans, and **$206.0 million** in total deposits. The combined entity is projected to have approximately **$2.3 billion** in total assets, **$1.5 billion** in total loans, and **$2.0 billion** in total deposits[114](index=114&type=chunk) [Critical Accounting Estimates](index=33&type=section&id=Critical%20Accounting%20Estimates) - Critical accounting policies involve significant estimates and judgments, including the allowance for credit losses, income taxes and deferred tax assets/liabilities, goodwill and other intangible assets, and derivative instruments[117](index=117&type=chunk) - These estimates are subject to revision based on new information or changes in economic conditions and market interest rates[117](index=117&type=chunk) - No significant changes to critical accounting estimates have occurred since the Annual Report on Form 10-K for December 31, 2024[118](index=118&type=chunk) [Comparison of Results of Operations for the Three Months Ended June 30, 2025 to the Three Months Ended June 30, 2024](index=34&type=section&id=Comparison%20of%20Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20to%20the%20Three%20Months%20Ended%20June%2030%2C%202024) - Net income increased by **$1.9 million** (**58.8%**) to **$5.2 million**, with diluted EPS rising to **$0.67** from **$0.42**[119](index=119&type=chunk) - Net interest income increased by **$2.6 million** (**20.7%**) to **$15.3 million**, driven by a **$174.9 million** increase in average earning assets and a **0.27%** increase in net interest margin to **3.19%**[119](index=119&type=chunk)[123](index=123&type=chunk) - A **$237 thousand** release of provision for credit losses in 2025, compared to a **$454 thousand** provision in 2024, contributed to the net income increase[119](index=119&type=chunk)[122](index=122&type=chunk) - Non-interest income increased by **$564 thousand**, primarily due to higher mortgage banking income (**$220 thousand**), investment advisory fees (**$243 thousand**), and gain on sale of OREO (**$127 thousand**)[119](index=119&type=chunk)[135](index=135&type=chunk) - Non-interest expense increased by **$1.2 million**, mainly due to higher salaries and employee benefits (**$757 thousand**) and other non-interest expenses, including merger-related legal fees (**$234 thousand**)[119](index=119&type=chunk)[141](index=141&type=chunk)[144](index=144&type=chunk) - The effective tax rate increased to **22.41%** from **19.16%**, partly due to a non-recurring adjustment in 2024[122](index=122&type=chunk)[145](index=145&type=chunk) - Average loans increased by **$84.7 million** (**7.2%**) to **$1.3 billion**, with loan yield increasing by **0.17%** to **5.77%**[124](index=124&type=chunk) - The cost of interest-bearing liabilities decreased to **2.56%** from **2.94%**, and the cost of deposits decreased to **1.82%** from **1.98%**[127](index=127&type=chunk) [Comparison of Results of Operations for the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024](index=41&type=section&id=Comparison%20of%20Results%20of%20Operations%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20to%20the%20Six%20Months%20Ended%20June%2030%2C%202024) - Net income increased by **$3.3 million** (**56.6%**) to **$9.2 million**, with diluted EPS rising to **$1.18** from **$0.76**[146](index=146&type=chunk) - Net interest income increased by **$4.9 million** to **$29.7 million**, with net interest margin improving by **0.31%** to **3.16%**[149](index=149&type=chunk) - Provision for credit losses declined by **$383 thousand** to **$200 thousand**, primarily related to a **$39.5 million** increase in loans held-for-investment and a reduction in qualitative factors[146](index=146&type=chunk)[150](index=150&type=chunk) - Non-interest income increased by **$1.4 million**, driven by mortgage banking income (**$554 thousand**), investment advisory fees (**$691 thousand**), and gain on sale of OREO (**$127 thousand**)[150](index=150&type=chunk)[162](index=162&type=chunk) - Non-interest expense increased by **$2.2 million**, mainly due to higher salaries and employee benefits (**$1.3 million**) and other non-interest expenses, including merger-related legal fees (**$234 thousand**)[150](index=150&type=chunk)[168](index=168&type=chunk) - The effective tax rate increased to **22.60%** from **20.42%**, partly due to a non-recurring adjustment in 2024[150](index=150&type=chunk)[171](index=171&type=chunk) - Average loans increased by **$87.4 million** (**7.5%**) to **$1.3 billion**, with loan yield increasing by **0.22%** to **5.74%**[151](index=151&type=chunk) - The cost of interest-bearing liabilities decreased to **2.57%** from **2.91%**, and the cost of deposits decreased to **1.84%** from **1.94%**[154](index=154&type=chunk) [Provision and Allowance for Credit Losses and Credit Metrics](index=48&type=section&id=Provision%20and%20Allowance%20for%20Credit%20Losses%20and%20Credit%20Metrics) - The total allowance for credit losses (ACL) comprises ACL for loans, unfunded commitments, and HTM investments[172](index=172&type=chunk) - The ACL for loans increased to **$13,330 thousand** at June 30, 2025, from **$13,135 thousand** at December 31, 2024[173](index=173&type=chunk) - Net loan recoveries were **$1 thousand** for the six months ended June 30, 2025, compared to net charge-offs of **$28 thousand** in the prior year[172](index=172&type=chunk) - Non-performing assets decreased to **$470 thousand** (**0.02%** of total assets) at June 30, 2025, from **$810 thousand** (**0.04%**) at December 31, 2024[176](index=176&type=chunk)[180](index=180&type=chunk) - Non-accrual loans decreased to **$210 thousand** at June 30, 2025, from **$219 thousand** at December 31, 2024[176](index=176&type=chunk) - The allowance as a percentage of total loans was **1.06%** at June 30, 2025, compared to **1.09%** at December 31, 2024[180](index=180&type=chunk) - Approximately **91.3%** of the loan portfolio is collateralized by real estate[174](index=174&type=chunk) [Financial Position](index=51&type=section&id=Financial%20Position) - Total assets increased by **$88.2 million** (**4.5%** or **9.1%** annualized) to **$2.0 billion** at June 30, 2025, from December 31, 2024[182](index=182&type=chunk) - Loans held-for-investment increased by **$39.5 million** (**3.2%** or **6.5%** annualized) to **$1.3 billion**[182](index=182&type=chunk)[184](index=184&type=chunk) - Total loan production (excluding mortgage secondary market and new construction residential real estate) was **$109.5 million** for the six months ended June 30, 2025[184](index=184&type=chunk) - Investment securities increased by **$15.6 million** to **$507.3 million**, driven by AFS mortgage-backed securities purchases[193](index=193&type=chunk) - Deposits increased by **$78.1 million** (**4.7%** or **9.4%** annualized) to **$1.8 billion**[199](index=199&type=chunk) - The loan-to-deposit ratio (including loans held-for-sale) was **72.5%** at June 30, 2025, down from **74.5%** at December 31, 2024[186](index=186&type=chunk) - Non-owner occupied commercial real estate loans and construction and land development loans were approximately **306%** and **77%** of total risk-based capital, respectively, at June 30, 2025[187](index=187&type=chunk) [Market Risk Management](index=58&type=section&id=Market%20Risk%20Management) - The Asset/Liability Committee (ALCO) monitors and manages interest rate risk, reviewing policies and assumptions quarterly[210](index=210&type=chunk) - The Company uses interest sensitivity 'gap' analysis and simulation modeling to assess the impact of varying interest rates on net interest income[211](index=211&type=chunk) - Policies aim to limit the maximum anticipated negative impact on net interest income to no more than **10%**, **15%**, **20%**, and **20%** for **100**, **200**, **300**, and **400 basis point** rate changes, respectively, over **12 months**[211](index=211&type=chunk) - At June 30, 2025, the Company was liability sensitive, projecting a decrease in net interest income in a rising interest rate environment over the subsequent **12 months**[212](index=212&type=chunk)[215](index=215&type=chunk) - In a declining interest rate environment, the model reflects increases in net interest income in all scenarios for the first **12 months**[212](index=212&type=chunk)[215](index=215&type=chunk) - The Present Value of Equity (PVE) analysis indicates the Company was primarily asset sensitive at June 30, 2025, with PVE increasing slightly in up **100** and **200 bp** scenarios, but declining in up **300** and **400 bp** scenarios[217](index=217&type=chunk)[218](index=218&type=chunk) [Liquidity and Capital Resources](index=60&type=section&id=Liquidity%20and%20Capital%20Resources) - The Company maintains high liquidity and adequate capital to meet day-to-day cash flow requirements and fund operations for at least the next **12 months**[219](index=219&type=chunk)[221](index=221&type=chunk) - Sources of liquidity include low-cost deposits, approved lines of credit (**$77.5 million** with financial institutions, **$10.0 million** with Federal Reserve Discount Window), and FHLB advances (over **$509.7 million** available)[220](index=220&type=chunk)[222](index=222&type=chunk) - Unused commitments to extend credit totaled **$197.2 million** at June 30, 2025, including **$67.9 million** in home equity lines of credit[223](index=223&type=chunk) - The Bank met all Basel III capital adequacy requirements at June 30, 2025, remaining a 'well capitalized' institution[231](index=231&type=chunk)[232](index=232&type=chunk) - Total shareholders' equity increased by **$11.0 million** to **$155.5 million** at June 30, 2025, driven by retained earnings and an improvement in accumulated other comprehensive loss[208](index=208&type=chunk) - The Board approved a **$7.5 million** share repurchase plan (2025 Repurchase Plan) on May 9, 2025, expiring May 8, 2026, with no repurchases made to date[209](index=209&type=chunk)[247](index=247&type=chunk) - The Board approved a cash dividend of **$0.16** per common share for Q2 2025, payable August 19, 2025[233](index=233&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk disclosures are not applicable, integrated within Management's Discussion and Analysis - Not applicable[235](index=235&type=chunk) [Item 4. Controls and Procedures](index=63&type=section&id=Item%204.%20Controls%20and%20Procedures) Management deemed disclosure controls effective, with no material changes in internal control over financial reporting - Disclosure controls and procedures were evaluated and deemed effective by the CEO and CFO as of June 30, 2025[236](index=236&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025[238](index=238&type=chunk) [PART II – OTHER INFORMATION](index=64&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) Routine legal claims exist, but no material pending proceedings are expected to adversely impact financials - The Company is a party to claims and lawsuits arising in the normal course of business[240](index=240&type=chunk) - Management is not aware of any material pending legal proceedings that would have a material adverse impact on financial position, results of operations, or cash flows[240](index=240&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) Risk factors from the Annual Report on Form 10-K and Item 2 are referenced, with no material changes - Investing in common stock involves risks detailed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and the cautionary statements under 'Cautionary Statement Regarding Forward-Looking Statements' in Part I, Item 2 of this Quarterly Report on Form 10-Q[241](index=241&type=chunk) - No material changes to previously disclosed risk factors have occurred[242](index=242&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Deferred stock units were credited to directors; no share repurchases made under the $7.5 million plan - **1,565** deferred stock units were credited to directors under the Non-Employee Director Deferred Compensation Plan during Q2 2025[247](index=247&type=chunk) - The 2025 Repurchase Plan, authorizing up to **$7.5 million** in common stock repurchases, was approved on May 9, 2025, but no repurchases were made during Q2 2025[247](index=247&type=chunk) [Item 3. Defaults Upon Senior Securities](index=64&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities - Not Applicable[244](index=244&type=chunk) [Item 4. Mine Safety Disclosures](index=64&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) No mine safety disclosures - Not Applicable[245](index=245&type=chunk) [Item 5. Other Information](index=64&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[246](index=246&type=chunk) [Item 6. Exhibits](index=65&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with Form 10-Q, including merger agreement, certifications, and XBRL data - Includes the Agreement and Plan of Merger with Signature Bank (Exhibit 2.1)[248](index=248&type=chunk) - Contains certifications from the Principal Executive Officer and Principal Financial Officer (Exhibits 31.1, 31.2, 32)[248](index=248&type=chunk) - Provides financial statements and notes in iXBRL format (Exhibit 101)[248](index=248&type=chunk) [SIGNATURES](index=66&type=section&id=SIGNATURES) Report signed by President and CEO Michael C. Crapps and EVP and CFO D. Shawn Jordan - Signed by Michael C. Crapps, President and CEO, and D. Shawn Jordan, EVP and CFO[252](index=252&type=chunk) - Date of signing: August 8, 2025[252](index=252&type=chunk) ```
First Community (FCCO) Upgraded to Strong Buy: Here's What You Should Know
ZACKS· 2025-07-28 17:01
Core Viewpoint - First Community (FCCO) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for First Community suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [10]. Recent Performance of First Community - For the fiscal year ending December 2025, First Community is expected to earn $2.45 per share, with a 2% increase in the Zacks Consensus Estimate over the past three months [8].
First munity (FCCO) - 2025 Q2 - Quarterly Results
2025-07-23 20:24
[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) First Community Corporation reported **record earnings** for Q2 2025, with **significant increases** in net income and diluted EPS both on a linked quarter and year-over-year basis. The company also achieved **margin expansion**, **record assets under management**, and **strong mortgage production**, alongside **excellent credit quality metrics** and an **increased cash dividend** Key Financial Performance (Q2 2025) | Metric | Q2 2025 Value | Linked Quarter Change | Year-over-Year Change | | :-------------------------------- | :---------------- | :-------------------- | :-------------------- | | Net Income | $5.186 million | +29.7% | +58.8% | | Diluted EPS | $0.67 | +31.4% | +59.5% | | Net Interest Margin (tax equivalent) | 3.21% | +8 basis points | N/A | | Investment Advisory Revenue | $1.751 million | N/A | N/A | | Mortgage Production | $62.9 million | N/A | N/A | | Total Loans Increase | $8.1 million | N/A | N/A | | Customer Deposit Growth | $28.3 million | N/A | N/A | | Net Charge-offs (incl. overdrafts) | $10 thousand | N/A | N/A | | Non-performing Assets | 0.02% | N/A | N/A | | Past Due Loans | 0.02% | N/A | N/A | - The company increased its **cash dividend** to **$0.16 per common share**, marking the **94th consecutive quarter** of **cash dividends** paid[1](index=1&type=chunk) [Year-to-Date 2025 Financial Highlights](index=1&type=section&id=Year-to-Date%202025%20Financial%20Highlights) For the first six months of 2025, First Community Corporation demonstrated **strong financial growth**, with **substantial increases** in net income and diluted EPS compared to the same period in 2024, supported by **solid loan and customer deposit growth** Key Financial Performance (Six Months Ended June 30, 2025) | Metric | YTD 2025 Value | YTD 2024 Value | Year-over-Year Change | | :-------------------------- | :------------- | :------------- | :-------------------- | | Net Income | $9.183 million | $5.862 million | +56.7% | | Diluted EPS | $1.18 | $0.76 | +55.3% | | Loans Increase | $39.5 million | N/A | +6.5% (annualized) | | Customer Deposit Growth | $78.1 million | N/A | +9.5% (annualized) | [Operational & Strategic Highlights](index=1&type=section&id=Operational%20%26%20Strategic%20Highlights) Operationally, the company achieved a significant milestone with assets under management exceeding **$1 billion** for the first time. Strategically, an **agreement** was announced to acquire **Signature Bank of Georgia**, signaling expansion into a new market and business line - Assets under management (AUM) reached a **record $1.011 billion** at June 30, 2025, marking a **9.1% increase year-to-date**[1](index=1&type=chunk) - The company announced the signing of an **agreement to acquire Signature Bank of Georgia**[1](index=1&type=chunk) [Financial Performance Overview](index=2&type=section&id=Financial%20Performance%20Overview) [Net Income and Earnings Per Share](index=2&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share) First Community Corporation reported **substantial growth** in net income and diluted earnings per share for both the second quarter and the first half of 2025, reflecting **strong financial performance** compared to previous periods Net Income and Diluted EPS Trends | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------- | :------ | :------ | :------ | :------- | :------- | | Net Income (million) | $5.186 | $3.997 | $3.265 | $9.183 | $5.862 | | Diluted EPS | $0.67 | $0.51 | $0.42 | $1.18 | $0.76 | [Cash Dividend and Capital Management](index=2&type=section&id=Cash%20Dividend%20and%20Capital%20Management) The Board of Directors approved an **increased cash dividend**, continuing a long-standing payout history. The company maintains **strong regulatory capital ratios** **well above minimum requirements** and has a **share repurchase plan** in place, though no shares have been repurchased to date. **Tangible book value per share** also saw **consistent growth** - An **increased cash dividend** of **$0.16 per share** was approved for Q2 2025, marking the **94th consecutive quarter** of **cash dividends**[4](index=4&type=chunk) - A **share repurchase plan** of up to **$7.5 million** was approved, representing approximately **5.0%** of total shareholders' equity as of March 31, 2025, expiring May 8, 2026. No shares have been repurchased under this plan[4](index=4&type=chunk) Capital Ratios and Tangible Book Value | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :----------------------------------- | :------------ | :------------- | :------------ | | Leverage Ratio | 8.44% | N/A | 8.44% | | Tier I Risk Based Ratio | 13.04% | N/A | 12.56% | | Total Risk Based Ratio | 14.10% | N/A | 13.62% | | Common Equity Tier I Ratio | 13.04% | N/A | 12.56% | | Tangible Common Equity to Tangible Assets (TCE) | 6.92% | 6.66% | 6.47% | | Tangible Book Value (TBV) per share | $18.28 | $17.56 | $15.85 | [Loan Portfolio Quality and Allowance for Credit Losses](index=2&type=section&id=Loan%20Portfolio%20Quality%20and%20Allowance%20for%20Credit%20Losses) The company maintained **excellent asset quality metrics** as of June 30, 2025, with **very low non-performing assets** and past due loan ratios. **Net charge-offs** were **minimal**, and the **allowance for credit losses on loans** saw a **slight reduction** due to **improved external economic forecasts** Key Asset Quality Metrics (June 30, 2025) | Metric | Value | | :-------------------------------- | :---- | | Non-performing Assets Ratio | 0.02% | | Total Past Dues Ratio | 0.02% | | Non-accrual Loans | $210 thousand | | Net Charge-offs (incl. overdrafts) Q2 2025 | $10 thousand | | Net Loan Recoveries (excl. overdrafts) Q2 2025 | $5 thousand | | Classified Loans + OREO / Total Bank Regulatory Risk-Based Capital | 0.82% | - The **Allowance for Credit Losses (ACL)** on **total loans decreased to 1.06%** at June 30, 2025, from **1.09%** at March 31, 2025, primarily due to **improvements in external forecasts** for the probability of a U.S. recession[7](index=7&type=chunk) [Balance Sheet Analysis](index=3&type=section&id=Balance%20Sheet%20Analysis) [Loans and Deposits](index=3&type=section&id=Loans%20and%20Deposits) Total loans and deposits experienced **solid growth** during Q2 2025, despite **higher loan payoffs**. The bank **successfully managed its deposit franchise**, achieving growth in total, pure, and non-interest bearing deposits while **decreasing the cost of deposits and funds** Loan and Deposit Growth (Q2 2025) | Metric | Q2 2025 Increase | Annualized Growth Rate | | :-------------------------------- | :--------------- | :--------------------- | | Total Loans | $8.1 million | 2.6% | | Total Deposits | $28.3 million | 6.6% | | Pure Deposits | $23.0 million | 6.5% | | Non-interest Bearing Accounts | $7.0 million | N/A | Loan Yields and Deposit Costs | Metric | Q2 2025 | Q1 2025 | | :---------------- | :------ | :------ | | Loan Yields | 5.77% | 5.71% | | Cost of Deposits | 1.82% | 1.85% | | Cost of Funds | 1.91% | 1.94% | - **Non-interest bearing accounts represented 27.1%** of total deposits at June 30, 2025[8](index=8&type=chunk) [Liquidity and Investment Portfolio](index=3&type=section&id=Liquidity%20and%20Investment%20Portfolio) The company maintained **strong liquidity** with **short-term investments** and available credit lines, with **no current borrowings**. The **investment portfolio grew**, and a **hedging strategy was implemented** to convert fixed-rate mortgage-backed securities to synthetic floaters, **improving accumulated other comprehensive loss** Liquidity and Investment Portfolio Highlights | Metric | June 30, 2025 | March 31, 2025 | | :----------------------------------- | :------------ | :------------- | | Short-term Investments | $151.3 million | $173.2 million | | Investment Portfolio | $507.3 million | $495.7 million | | Investment Portfolio Yield (Q2 2025) | 3.43% | N/A | | Accumulated Other Comprehensive Loss (AOCL) | $21.9 million | $23.0 million | - The bank has **additional liquidity sources totaling $87.5 million** in federal funds purchased lines and Federal Reserve Discount Window, plus substantial FHLB borrowing capacity, with **no borrowings against these lines** as of June 30, 2025[9](index=9&type=chunk) - A **hedging strategy was implemented** in Q2 2025, involving the purchase of **$20.0 million** fixed-rate agency MBS bonds and an **interest rate swap** to convert them to synthetic floaters[10](index=10&type=chunk) [Revenue Analysis](index=4&type=section&id=Revenue%20Analysis) [Net Interest Income and Margin](index=4&type=section&id=Net%20Interest%20Income%20and%20Margin) **Net interest income and net interest margin both increased significantly** in Q2 2025, driven by **effective interest rate management**, including the **positive impact of an existing pay-fixed swap agreement** Net Interest Income and Margin Trends | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net Interest Income (million) | $15.3 | $14.4 | $12.7 | | Net Interest Margin (tax equivalent) | 3.21% | 3.13% | N/A | - An **interest rate swap**, converting fixed-rate loans to a synthetic floating SOFR rate, **positively impacted interest on loans by $284 thousand** in Q2 2025 and **$571 thousand** year-to-date, **contributing 9 basis points to loan yields and 6 basis points to net interest margin** in Q2[12](index=12&type=chunk) [Non-Interest Income](index=4&type=section&id=Non-Interest%20Income) **Non-interest income showed strong growth year-over-year**, primarily fueled by **record mortgage production** and **assets under management in investment advisory**, despite a **slight linked-quarter dip in advisory revenue** Non-Interest Income Performance | Metric | Q2 2025 | Q1 2025 | Q2 2024 | Linked Quarter Change | Year-over-Year Change | | :-------------------------- | :------ | :------ | :------ | :-------------------- | :-------------------- | | Total Non-Interest Income (million) | $4.206 | $3.982 | $3.642 | +5.6% | +15.5% | | Mortgage Production (million) | $62.9 | N/A | $49.0 | N/A | +28.4% | | Mortgage Fee Revenue (thousand) | $879 | N/A | $655 | N/A | +34.2% | | Investment Advisory AUM (million) | $1,011 | $892.8 | N/A | +13.2% | N/A | | Investment Advisory Revenue (million) | $1.751 | $1.806 | $1.508 | -3.0% | +16.1% | - A **$127 thousand gain on the sale of other real estate owned property was realized** during the second quarter of 2025[15](index=15&type=chunk) [Non-Interest Expense](index=4&type=section&id=Non-Interest%20Expense) **Non-interest expense increased** in Q2 2025, primarily due to **acquisition-related costs** and **higher salaries and benefits** driven by **increased variable compensation and incentive accruals**. This was partially offset by **reduced marketing and legal expenses** Non-Interest Expense Breakdown (Q2 2025) | Expense Category | Q2 2025 Value (million) | Linked Quarter Change | | :-------------------------- | :---------------------- | :-------------------- | | Total Non-Interest Expense | $13.083 | +$329 thousand | | Acquisition Expenses | $234 thousand | N/A | | Salaries and Benefits | N/A | +$403 thousand | | Marketing and Public Relations | N/A | -$306 thousand | | Other Expense (non-acquisition) | N/A | -$70 thousand | | Other Real Estate Expenses | N/A | +$98 thousand | - The increase in salaries and benefits was attributed to **higher variable compensation** in mortgage and financial planning, **increased incentive accruals**, payroll taxes, and the full quarter impact of annual exempt employee increases[16](index=16&type=chunk) [Strategic Initiatives](index=5&type=section&id=Strategic%20Initiatives) [Signature Bank of Georgia Acquisition](index=5&type=section&id=Signature%20Bank%20of%20Georgia%20Acquisition) First Community Corporation announced an **agreement to acquire Signature Bank of Georgia**, a strategic move to expand into the Atlanta market and add an **SBA lending line of business**. The acquisition is anticipated to close in **early Q1 2026** - The company entered into an **agreement** on July 13, 2025, to acquire **Signature Bank of Georgia**[17](index=17&type=chunk) - This **acquisition** will **establish a presence in the Atlanta area** and **introduce an SBA lending line of business**[17](index=17&type=chunk) - The **financial closing is expected in early Q1 2026**, with operational conversion following later in Q1 or **early Q2 2026**[17](index=17&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) [Disclaimer on Future Projections](index=5&type=section&id=Disclaimer%20on%20Future%20Projections) This section contains **forward-looking statements** subject to various risks and uncertainties that could cause **actual results to differ materially** from projections. Key risks include the completion and benefits of the **Signature Bank of Georgia acquisition**, competitive pressures, economic conditions, regulatory changes, interest rate fluctuations, and cybersecurity risks - **Forward-looking statements are subject to risks**, **uncertainties**, and other factors that could cause **actual results to differ materially** from future results expressed or implied[18](index=18&type=chunk) - Risks include the possibility that the **planned acquisition of Signature Bank of Georgia may not be completed or its anticipated benefits not realized**, **competitive pressures**, **economic conditions**, **changes in legislation/regulation**, adverse stock/debt market conditions, interest rate changes, technology/cybersecurity risks, elevated inflation, and FDIC assessment increases[18](index=18&type=chunk) - The company undertakes **no obligation to publicly update or revise** any **forward-looking statements**, except as required by law[19](index=19&type=chunk) [Additional Information Regarding Acquisition](index=6&type=section&id=Additional%20Information%20Regarding%20Acquisition) [SEC Filings and Shareholder Information](index=6&type=section&id=SEC%20Filings%20and%20Shareholder%20Information) First Community Corporation will file a **registration statement on Form S-4**, including a **joint proxy statement/prospectus**, with the SEC regarding the proposed acquisition of **Signature Bank of Georgia**. Investors and shareholders are urged to review these documents for **important information**, which will be available on the SEC's website - First Community intends to file a **registration statement on Form S-4** containing a **joint proxy statement/prospectus** with the SEC for the proposed acquisition[20](index=20&type=chunk) - Investors and shareholders are encouraged to read the entire **joint proxy statement/prospectus** and other filed documents carefully when they become available, as they will contain **important information**[20](index=20&type=chunk) - This communication **does not constitute an offer to sell or a solicitation of an offer to buy securities**[21](index=21&type=chunk) [Financial Tables](index=7&type=section&id=Financial%20Tables) [Balance Sheet Data](index=7&type=section&id=Balance%20Sheet%20Data) This section presents the company's balance sheet data, including assets, liabilities, and shareholders' equity, along with key financial ratios, across several quarters. It details trends in total assets, loans, deposits, and capital adequacy Selected Balance Sheet Data (Dollars in thousands) | Metric | June 30, 2025 (thousands) | March 31, 2025 (thousands) | December 31, 2024 (thousands) | September 30, 2024 (thousands) | June 30, 2024 (thousands) | | :----------------------------------- | :------------------------ | :------------------------- | :---------------------------- | :----------------------------- | :------------------------ | | Total Assets | $2,046,265 | $2,039,371 | $1,958,021 | $1,943,548 | $1,884,844 | | Total Investment Securities | $507,282 | $495,657 | $491,697 | $486,850 | $488,653 | | Loans | $1,260,055 | $1,251,980 | $1,220,542 | $1,196,659 | $1,189,189 | | Total Deposits | $1,754,041 | $1,725,718 | $1,675,901 | $1,644,064 | $1,604,528 | | Shareholders' Equity | $155,500 | $149,959 | $144,494 | $143,312 | $136,179 | | Tangible Book Value Per Common Share | $18.28 | $17.56 | $16.93 | $16.78 | $15.85 | | TCE Ratio | 6.92% | 6.66% | 6.66% | 6.65% | 6.47% | | Leverage Ratio (Bank) | 8.44% | 8.45% | 8.40% | 8.39% | 8.44% | Asset Quality (Dollars in thousands) | Metric | June 30, 2025 (thousands) | March 31, 2025 (thousands) | December 31, 2024 (thousands) | September 30, 2024 (thousands) | June 30, 2024 (thousands) | | :-------------------------------- | :------------------------ | :------------------------- | :---------------------------- | :----------------------------- | :------------------------ | | Non-accrual Loans | $210 | $215 | $219 | $119 | $173 | | Other Real Estate Owned | $194 | $437 | $543 | $544 | $544 | | Total Nonperforming Assets | $470 | $658 | $810 | $874 | $717 | | Net Charge-offs (Recoveries) Q2 | $10 | N/A | N/A | N/A | $5 | | Net Charge-offs (Recoveries) YTD | $(1) | N/A | N/A | N/A | $28 | [Income Statement Data](index=9&type=section&id=Income%20Statement%20Data) This section provides a detailed breakdown of the company's income statement, highlighting revenue, expenses, and profitability metrics for the second quarter and first six months of 2025 and 2024. It shows **significant growth in net interest income and net income** Selected Income Statement Data (Dollars in thousands) | Metric | Q2 2025 (thousands) | Q1 2025 (thousands) | Q2 2024 (thousands) | YTD 2025 (thousands) | YTD 2024 (thousands) | | :----------------------------------- | :------------------ | :------------------ | :------------------ | :------------------- | :------------------- | | Interest Income | $24,173 | $23,082 | $21,931 | $47,255 | $43,187 | | Interest Expense | $8,849 | $8,692 | $9,237 | $17,541 | $18,416 | | Net Interest Income | $15,324 | $14,390 | $12,694 | $29,714 | $24,771 | | (Release of) Provision for Credit Losses | $(237) | $437 | $454 | $200 | $583 | | Total Non-Interest Income | $4,206 | $3,982 | $3,642 | $8,188 | $6,826 | | Total Non-Interest Expense | $13,083 | $12,754 | $11,843 | $25,837 | $23,648 | | Net Income | $5,186 | $3.997 | $3,265 | $9,183 | $5,862 | | Diluted EPS | $0.67 | $0.51 | $0.42 | $1.18 | $0.76 | | Return on Average Assets | 1.02% | 0.82% | 0.71% | 0.92% | 0.63% | | Return on Average Common Equity | 13.68% | 11.05% | 9.82% | 12.39% | 8.87% | | Net Interest Margin (taxable equivalent) | 3.21% | 3.13% | 2.93% | 3.17% | 2.86% | | Efficiency Ratio | 66.04% | 69.23% | 72.75% | 67.59% | 74.88% | [Yields on Average Earning Assets and Rates on Average Interest-Bearing Liabilities](index=10&type=section&id=Yields%20on%20Average%20Earning%20Assets%20and%20Rates%20on%20Average%20Interest-Bearing%20Liabilities) This section details the yields earned on average earning assets and the rates paid on average interest-bearing liabilities for the three and six months ended June 30, 2025, and 2024. It illustrates the components contributing to net interest income and margin Yields on Average Earning Assets (Q2 2025 vs Q2 2024) | Asset Category | Q2 2025 Average Balance (million) | Q2 2025 Yield | Q2 2024 Average Balance (million) | Q2 2024 Yield | | :-------------------------------- | :-------------------------------- | :------------ | :-------------------------------- | :------------ | | Loans | $1,263,027 | 5.77% | $1,178,342 | 5.60% | | Non-taxable securities | $46,160 | 2.99% | $48,982 | 2.95% | | Taxable securities | $459,313 | 3.47% | $442,205 | 3.74% | | Int bearing deposits in other banks | $155,861 | 4.32% | $79,956 | 5.32% | | Total Earning Assets | $1,924,379 | 5.04% | $1,749,525 | 5.04% | Rates on Average Interest-Bearing Liabilities (Q2 2025 vs Q2 2024) | Liability Category | Q2 2025 Average Balance (million) | Q2 2025 Rate | Q2 2024 Average Balance (million) | Q2 2024 Rate | | :-------------------------------- | :-------------------------------- | :----------- | :-------------------------------- | :----------- | | Interest-bearing transaction accounts | $347,536 | 1.23% | $303,825 | 1.07% | | Money market accounts | $460,865 | 3.04% | $400,656 | 3.36% | | Savings deposits | $110,193 | 0.27% | $113,620 | 0.40% | | Time deposits | $343,998 | 3.81% | $308,164 | 4.51% | | Securities sold under agreements to repurchase | $110,233 | 2.48% | $68,591 | 2.91% | | Total Interest-Bearing Liabilities | $1,387,789 | 2.56% | $1,265,430 | 2.94% | | Cost of Deposits (incl. demand) | N/A | 1.82% | N/A | 1.98% | | Cost of Funds (incl. demand) | N/A | 1.91% | N/A | 2.17% | [Non-GAAP Financial Measures Reconciliation](index=12&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section provides reconciliations of non-GAAP financial measures, such as 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, to their most directly comparable GAAP measures. **Management uses these non-GAAP measures to enhance the evaluation of operating results** - **Non-GAAP measures are used by management and investors to evaluate and compare operating results**, but **should not be considered in isolation from GAAP results**[30](index=30&type=chunk) Tangible Book Value Per Common Share Reconciliation | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :----------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Tangible book value 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 | Return on Average Tangible Common Equity Reconciliation | Metric | Q2 2025 | Q2 2024 | Q1 2025 | Q1 2024 | YTD 2025 | YTD 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% |
Compared to Estimates, First Community (FCCO) Q2 Earnings: A Look at Key Metrics
ZACKS· 2025-07-23 15:30
Core Insights - First Community (FCCO) reported a revenue of $19.53 million for the quarter ended June 2025, reflecting a year-over-year increase of 19.5% and surpassing the Zacks Consensus Estimate by 4.41% [1] - The earnings per share (EPS) for the quarter was $0.67, compared to $0.42 in the same quarter last year, resulting in an EPS surprise of 15.52% over the consensus estimate of $0.58 [1] Financial Performance Metrics - The net interest margin was reported at 3.2%, matching the average estimate from two analysts [4] - The efficiency ratio stood at 66%, slightly better than the average estimate of 67% from two analysts [4] - Total non-interest income reached $4.21 million, exceeding the estimated $3.82 million by two analysts [4] Stock Performance - Over the past month, shares of First Community have returned +7%, outperforming the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]
First Community (FCCO) Tops Q2 Earnings and Revenue Estimates
ZACKS· 2025-07-23 15:11
Group 1 - First Community (FCCO) reported quarterly earnings of $0.67 per share, exceeding the Zacks Consensus Estimate of $0.58 per share, and up from $0.42 per share a year ago, representing an earnings surprise of +15.52% [1] - The company posted revenues of $19.53 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.41%, compared to year-ago revenues of $16.34 million [2] - First Community has consistently surpassed consensus EPS estimates over the last four quarters [2] Group 2 - The stock has gained approximately 5.8% since the beginning of the year, while the S&P 500 has increased by 7.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.61 on revenues of $19.35 million, and for the current fiscal year, it is $2.35 on revenues of $76.17 million [7] Group 3 - The Zacks Industry Rank indicates that the Banks - Southeast industry is currently in the top 14% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - Another company in the same industry, South Atlantic Bancshares, Inc. (SABK), is expected to report quarterly earnings of $0.45 per share, reflecting a year-over-year change of +50% [9]