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].

[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% |

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]

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]

Core Points - First Community Corporation reported a net income of $5.186 million for Q2 2025, a 29.7% increase from Q1 2025 and a 58.8% increase year-over-year [2][8] - Diluted earnings per share (EPS) for Q2 2025 were $0.67, up 31.4% from Q1 2025 and 59.5% from Q2 2024 [2][8] - The company announced a cash dividend of $0.16 per share, marking the 94th consecutive quarter of dividends [4][8] Financial Performance - Year-to-date net income through June 30, 2025, was $9.183 million, a 56.7% increase compared to the same period in 2024 [3][8] - Net interest income for Q2 2025 was $15.3 million, compared to $14.4 million in Q1 2025 and $12.7 million in Q2 2024 [12][27] - Non-interest income for Q2 2025 was $4.206 million, an increase of 5.6% from Q1 2025 and 15.5% from Q2 2024 [14][27] Asset Quality - The non-performing assets ratio was 0.02% as of June 30, 2025, with non-accrual loans totaling $210 thousand [6][8] - The allowance for credit losses (ACL) on loans decreased to 1.06% from 1.09% in Q1 2025 [7][8] Balance Sheet - Total loans increased by $8.1 million in Q2 2025, reflecting an annualized growth rate of 2.6% [8][9] - Total deposits reached $1.754 billion, with customer deposits growing by $28.3 million during Q2 2025, a 6.6% annualized growth rate [9][10] - The company's tangible book value per share increased to $18.28 as of June 30, 2025, from $17.56 at the end of Q1 2025 [5][8] Capital Management - The company’s regulatory capital ratios exceeded the well-capitalized minimum levels, with a Tier 1 capital ratio of 13.04% as of June 30, 2025 [4][8] - 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 [4][8] Strategic Initiatives - The company announced an agreement to acquire Signature Bank of Georgia, expected to close in early Q1 2026 [19][8] - This acquisition aims to expand the company's presence in the Atlanta area and add an SBA lending line of business [19][8]

Core Points - Class Action Attorney Juan Monteverde's firm, Monteverde & Associates PC, is investigating First Community Corporation in relation to its merger with Signature Bank of Georgia, where Signature Bank shareholders will receive 0.6410 shares of First Community common stock per Signature Bank share [1] Group 1 - Monteverde & Associates PC has recovered millions for shareholders and is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report [1] - The firm is headquartered in the Empire State Building, New York City [1] - The proposed transaction raises questions about its fairness for Signature Bank shareholders [1]

Core Viewpoint - First Community Corporation has announced a definitive merger agreement to acquire Signature Bank of Georgia in an all-stock transaction valued at approximately $41.6 million, based on First Community's stock price as of July 11, 2025 [1][2]. Group 1: Transaction Details - The merger will result in a combined company with approximately $2.3 billion in total assets, $2.0 billion in total deposits, and $1.5 billion in total loans at closing [2]. - The merger will create a banking company with 23 offices across various regions, including South Carolina and Georgia [2]. - The transaction is expected to close in early Q1 2026, pending regulatory and shareholder approvals [2]. Group 2: Strategic Benefits - The merger is seen as a strategic move to expand into the Sandy Springs/Atlanta area, enhancing First Community's market presence [3]. - Signature Bank's expertise in SBA lending is expected to complement First Community's focus on supporting local businesses and entrepreneurs [3]. - The merger is projected to enhance First Community's tangible common equity to tangible assets ratio by approximately 35 basis points, resulting in a pro forma ratio of 7.45% [3]. Group 3: Financial Projections - The merger is anticipated to be accretive to First Community's earnings per share by approximately 4.4% in 2026 [3]. - The transaction structure includes a tangible book value dilution of approximately 2.6%, with an earnback period of 2.2 years [3]. - The internal rate of return on the deal is estimated at approximately 27.6%, indicating strong financial merits [3]. Group 4: Leadership and Governance - Signature's Chairman and CEO, Freddie J. Deutsch, will take on the role of Regional Market President and Director of Specialty Business Lending at First Community Bank [4]. - Key members of Signature's leadership team will continue with First Community Bank, and two current Signature directors will join First Community's Board of Directors [4]. Group 5: Advisory and Legal Support - First Community was advised by Hovde Group, LLC as financial advisor and Nelson Mullins Riley & Scarborough, LLP as legal counsel [5]. - Signature was advised by Olsen Palmer LLC as financial advisor and Fenimore Kay Harrison LLP as legal counsel [5].

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]