Financial Performance - First Community Corporation reported net income of $5.192 million for Q3 2025, a 34.5% increase year-over-year and flat compared to Q2 2025 [2][5] - Diluted earnings per share (EPS) were $0.67 for Q3 2025, unchanged from Q2 2025 but up 34.0% year-over-year [2][5] - Year-to-date net income through September 30, 2025, was $14.375 million, a 47.8% increase compared to the same period in 2024 [3][5] Capital Management - The Board of Directors approved a cash dividend of $0.16 per share for Q3 2025, marking the 95th consecutive quarter of dividends [4][5] - A share repurchase plan of up to $7.5 million was approved, representing approximately 4.6% of total shareholders' equity as of September 30, 2025 [4] Asset Quality - The non-performing assets ratio was 0.04% of total assets, with a total past due ratio of 0.07% of total loans as of September 30, 2025 [4][5] - Net charge-offs during Q3 2025 were $13 thousand, indicating strong credit quality metrics [5][10] Loan and Deposit Growth - Total loans increased by $19.3 million in Q3 2025, reflecting a 6.1% annualized growth rate [4][5] - Total deposits rose by $17.1 million during Q3 2025, with customer deposits increasing by $27.6 million, a 6.3% annualized growth rate [4][5] Investment Portfolio - The investment portfolio was valued at $501.3 million as of September 30, 2025, with a yield of 3.41% [6] - Accumulated Other Comprehensive Loss improved to $20.2 million from $21.9 million in the previous quarter [6] Non-Interest Income - Total non-interest income for Q3 2025 was $4.469 million, a 6.3% increase from Q2 2025 and a 25.2% increase year-over-year [8][10] Regulatory Capital Ratios - As of September 30, 2025, the bank's regulatory capital ratios exceeded the well-capitalized minimum levels, with a Tier 1 Capital Ratio of 13.10% [4][15]

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].

Core Insights - First Community Corporation reported a net income of $3.997 million for Q1 2025, with diluted earnings per share of $0.51, reflecting a year-over-year increase from $2.597 million and $0.34 per share, but a decrease from $4.232 million and $0.55 from the previous quarter [3][10]. Financial Performance - The company declared a cash dividend of $0.15 per common share, marking the 93rd consecutive quarter of dividends [4]. - Total deposits rose by $49.8 million to $1.726 billion, representing a 12.1% annualized growth rate [9][10]. - Total loans increased by $31.4 million to $1.252 billion, with an annualized growth rate of 10.4% [8][10]. - Net interest income was $14.4 million, up from $13.9 million in the previous quarter and $12.1 million in Q1 2024 [12][23]. - The net interest margin expanded to 3.13%, compared to 3.00% in the previous quarter and 2.79% in Q1 2024 [12][23]. Asset Quality - Non-performing assets (NPAs) were 0.03% of total assets, with $658 thousand in NPAs, an improvement from 0.04% and $810 thousand at the end of Q4 2024 [6][10]. - The past due ratio for all loans was 0.14%, up from 0.05% in the previous quarter [6]. Capital Ratios - Regulatory capital ratios exceeded the minimum required levels, with a Leverage ratio of 8.45%, Tier I Risk Based ratio of 12.90%, and Total Risk Based ratio of 13.99% as of March 31, 2025 [4][21]. Investment Advisory and Mortgage Business - Investment advisory revenue was $1.806 million, with assets under management (AUM) at $892.8 million, down from $926.0 million at the end of Q4 2024 [16][10]. - The mortgage line of business produced $43.86 million in loans, with fee revenue of $759 thousand, including a gain-on-sale margin of 2.93% [15][10]. Non-Interest Income and Expenses - Non-interest income for Q1 2025 was $3.982 million, an increase from $3.608 million in the previous quarter [14][10]. - Non-interest expenses rose to $12.754 million, up from $11.826 million in Q4 2024, primarily due to increased salaries and marketing expenses [17][10].