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].

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of a trend in short-term investing, highlighting that successful entry timing is crucial for profitability [1][2]. Group 1: Trend Analysis - The trend can reverse before exiting a trade, potentially leading to short-term capital losses for investors [2]. - A solid price increase over a 12-week period indicates investor confidence, with First Community (FCCO) showing a 7.7% gain during this timeframe [4]. - A more recent price increase of 14.2% over the past four weeks suggests that the upward trend for FCCO is still intact [5]. Group 2: Stock Performance Metrics - FCCO is currently trading at 91.8% of its 52-week high-low range, indicating a potential breakout [6]. - The stock 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][7]. - The Average Broker Recommendation for FCCO is also 1 (Strong Buy), reflecting strong optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks with sufficient fundamental strength to maintain their upward trends [3][8]. - The article suggests that investors should consider other stocks that pass through this screening process, in addition to FCCO, to find potential winning stock picks [8].

Core Viewpoint - Three bank holding companies are highlighted as strong investment opportunities with a Zacks Rank 1 and favorable value characteristics for investors to consider on January 27 Group 1: Metropolitan Bank Holding Corp. (MCB) - MCB has seen a 4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 9.00, which is lower than the industry average of 11.50 [1] - MCB possesses a Value Score of B [1] Group 2: HBT Financial, Inc. (HBT) - HBT has experienced an 8.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - The company has a price-to-earnings ratio (P/E) of 9.95, compared to the industry average of 11.50 [2] - HBT also holds a Value Score of B [2] Group 3: First Community Corporation (FCCO) - FCCO has seen a 3.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - The company has a price-to-earnings ratio (P/E) of 12.09, significantly lower than the S&P average of 22.06 [3] - FCCO possesses a Value Score of B [3]

Core Viewpoint - First Community (FCCO) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to significant price movements based on changes in these estimates [4]. Company Performance Indicators - For the fiscal year ending December 2025, First Community is projected to earn $2.15 per share, reflecting an 18.8% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for First Community has risen by 3.6%, indicating a positive trend in earnings expectations [8]. Zacks Rank System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade of First Community to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Company Overview - First Community (FCCO) is headquartered in Lexington and operates in the finance sector, with a year-to-date price change of 2.38% [3] - The company currently pays a dividend of $0.15 per share, resulting in a dividend yield of 2.44%, which is higher than the Banks - Southeast industry's yield of 2.28% and the S&P 500's yield of 1.5% [3] Dividend Performance - The annualized dividend of $0.60 represents a 3.4% increase from the previous year [4] - Over the past five years, First Community has increased its dividend four times, achieving an average annual increase of 5.34% [4] - The current payout ratio is 36%, indicating that the company pays out 36% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for First Community's earnings in 2025 is projected at $2.08 per share, reflecting an expected increase of 14.92% from the previous year [5] Investment Considerations - First Community is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7] - The company is positioned well for income investors, especially in the context of rising interest rates, where high-yielding stocks may face challenges [7]

Financial Performance - Net income for Q4 2024 was $4.232 million, up 28.3% from $3.297 million in Q4 2023, and diluted EPS increased to $0.55 from $0.43[3] - Net income for the three months ended December 2024 was $4,232 thousand, a 28.4% increase from $3,297 thousand in December 2023[28] - Net income (GAAP) for December 2024 was $4,232 million, compared to $3,861 million in December 2023, reflecting a year-over-year increase of 9.6%[31] Deposits and Loans - Total deposits grew by $164.9 million, or 10.9%, year-over-year, reaching $1.676 billion as of December 31, 2024[11] - Total deposits increased to $1,675,901 thousand as of December 31, 2024, compared to $1,644,064 thousand as of September 30, 2024[26] - Average deposits rose to $1,661,782 thousand in December 2024, up from $1,498,773 thousand in December 2023, reflecting an increase of 10.9%[27] - Total loan growth for 2024 was $86.5 million, representing a 7.6% annual growth rate, with Q4 2024 loan growth at $23.9 million, or 2.0%[10] - Average loans increased to $1,211,880 thousand in December 2024, up from $1,121,383 thousand in December 2023, indicating an increase of 8.1%[27] Income and Revenue - Investment advisory revenue for Q4 2024 was $1.720 million, with assets under management increasing to $926.0 million from $755.4 million year-over-year[5] - Total non-interest income for Q4 2024 was $3.608 million, up from $3.570 million in Q3 2024 and $2.931 million in Q4 2023, with total non-interest income for 2024 reaching $14.004 million compared to $10.421 million in 2023[18] - Non-interest income for the twelve months ended December 2024 was $14,004 thousand, compared to $10,421 thousand in 2023, marking a significant increase of 34.5%[28] Expenses and Efficiency - Total non-interest expense decreased to $11.826 million in Q4 2024 from $11.991 million in Q3 2024, with a planned decrease in marketing expenses of $267 thousand[20] - The efficiency ratio improved to 66.67% in December 2024, compared to 69.92% in December 2023, indicating better cost management[28] Assets and Capital - Total assets as of December 31, 2024, were $1,958,021 thousand, an increase from $1,943,548 thousand as of September 30, 2024[26] - Shareholders' equity increased to $143,726 million as of December 31, 2024, compared to $124,866 million in 2023, reflecting a growth of 15.1%[29] - The bank's tangible book value per share increased to $16.93 as of December 31, 2024, compared to $15.23 a year prior[7] Capital Ratios - Regulatory capital ratios exceeded minimum requirements, with the Tier I Risk Based ratio at 12.87% as of December 31, 2024, up from 12.53% a year earlier[6] - The Tier 1 Capital Ratio was 12.87% as of December 31, 2024, compared to 12.93% as of September 30, 2024[26] Risk Management - The bank's non-performing assets ratio remained low at 0.04% at year-end 2024, with past due loans at 0.05%[8] - Net charge-offs to average loans were reported at (0.01%) for the three months ended December 2024, indicating effective credit risk management[27] - The company anticipates potential risks including competitive pressures, changes in interest rates, and economic conditions that may impact future performance[23] Shareholder Returns - The company declared a cash dividend of $0.15 per common share, marking the 92nd consecutive quarter of dividends[6] - The company has a share repurchase plan approved for up to $7.1 million, representing approximately 4.9% of total shareholders' equity as of December 31, 2024[6] Interest Income and Margin - Net interest income for 2024 increased by 6.4% to $52.0 million compared to $48.9 million in 2023, with a net interest margin of 3.00% for Q4 2024[16] - Net interest income rose to $13,857 thousand for the three months ended December 2024, up from $12,295 thousand in December 2023, reflecting a growth of 12.7%[28] - The yield on loans improved to 5.61% for the twelve months ended December 31, 2024, compared to 4.99% in the previous year, indicating a rise of 62 basis points[30] - The net interest margin (tax equivalent) for the twelve months ended December 31, 2024, was 2.92%, slightly down from 3.01% in 2023[30] Other Financial Metrics - Tangible common equity per common share (non-GAAP) increased to $16.93 in December 2024 from $15.23 in December 2023, reflecting a year-over-year growth of 11.2%[31] - Book value per common share (GAAP) rose to $18.90 in December 2024, up from $17.23 in December 2023, indicating a growth of 9.7%[31] - Return on average tangible common equity (non-GAAP) improved to 13.09% in December 2024 compared to 11.44% in December 2023, representing an increase of 1.65 percentage points[31]

Core Insights - First Community (FCCO) reported revenue of $17.47 million for the quarter ended December 2024, reflecting a year-over-year increase of 14.7% and a surprise of +2.16% over the Zacks Consensus Estimate of $17.1 million [1] - Earnings per share (EPS) for the quarter was $0.55, compared to $0.43 in the same quarter last year, resulting in an EPS surprise of +10.00% against the consensus estimate of $0.50 [1] Financial Performance Metrics - The net interest margin (taxable equivalent) was reported at 3%, aligning with the average estimate from two analysts [4] - The efficiency ratio stood at 66.7%, better than the average estimate of 69.5% based on two analysts [4] - Total non-interest income reached $3.61 million, exceeding the average estimate of $3.52 million from two analysts [4] Stock Performance - Over the past month, shares of First Community have returned -0.9%, while the Zacks S&P 500 composite has increased by +2.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]