First Community Corporation Announces First Quarter Results and Cash Dividend

Rhea-AI Summary

First Community Corporation (NASDAQ: FCCO) reported Q1 2026 net income of $5.498 million and diluted EPS of $0.59; excluding merger expenses, net income was $6.754 million and EPS $0.72. Total deposits rose to $2.048 billion and loans to $1.549 billion. The board approved a $0.16 per-share cash dividend payable May 19, 2026.

Results reflect the January 8, 2026 acquisition of Signature Bank of Georgia, margin expansion to 3.37% and continued strong credit metrics (NPAs 0.04%).

Positive

• Net income excluding merger expenses up 69.0% YoY
• Total deposits increased to $2.048B at March 31, 2026
• Net interest margin expanded to 3.37%
• Tangible book value per share rose to $19.88
• Board approved $0.16 quarterly cash dividend (payable May 19, 2026)

Negative

• Merger expenses of $1.581M increased non-interest expense
• Purchase accounting amortization reduced loan yields by 0.12%
• Substandard loans increased by $2.7M from Signature Bank due diligence, prompting a $2.0M collateral-related credit mark

News Market Reaction – FCCO

+1.56%

+1.56% Session close to close

In the Apr 22 session, FCCO gained 1.56%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement delivers detailed Q1 2026 results, highlighting higher net income, continued net i...

Analysis

This announcement delivers detailed Q1 2026 results, highlighting higher net income, continued net interest margin expansion to 3.37%, and growth in loans and deposits, assisted by the Signature Bank acquisition. The board maintained a $0.16 dividend, marking the 97th consecutive quarterly payout. Asset quality metrics, including 0.04% non-performing assets, remained strong. Investors may focus on merger-related expenses, credit marks in the acquired portfolio, and the sustainability of organic growth and margin trends in upcoming quarters.

Key Figures

Q1 2026 net income: $5.498M Net income ex-merger: $6.754M Diluted EPS: $0.59 +5 more

8 metrics

Q1 2026 net income $5.498M First quarter 2026 net income

Net income ex-merger $6.754M Q1 2026 net income excluding merger expenses

Diluted EPS $0.59 Q1 2026 diluted EPS per common share

EPS ex-merger expenses $0.72 Q1 2026 diluted EPS excluding merger expenses

Total deposits $2.048B Deposits at March 31, 2026

Total loans $1.549B Loans at March 31, 2026

Net interest margin 3.37% Tax-equivalent NIM, Q1 2026

Quarterly dividend $0.16 Q1 2026 cash dividend per common share

Previous Dividends,earnings Reports

5 past events · Latest: Oct 22 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Oct 22	Q3 2025 earnings	Positive	+2.4%	Strong Q3 growth, higher EPS, dividend declaration, stable asset quality.
Jul 23	Q2 2025 earnings	Positive	+1.3%	Record earnings, EPS growth, higher AUM, dividend increase, planned acquisition.
Apr 23	Q1 2025 earnings	Positive	+6.1%	Robust net income, strong deposit and loan growth, margin expansion.
Oct 16	Q3 2024 earnings	Positive	+8.4%	Earnings growth, loan and deposit expansion, dividend, improving margin.
Jul 17	Q2 2024 earnings	Positive	+3.9%	Higher net income, margin gains, strong loan and deposit growth, dividend raise.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings and dividend announcements have historically led to positive price reactions, with all recent same-tag events moving higher post-release.

Recent Company History

Over the past several quarters, FCCO’s dividends,earnings releases have highlighted consistent net income growth, expanding net interest margin, and rising assets under management. Prior updates also featured dividend increases to $0.16 per share and strong credit quality with very low non-performing assets. Management has coupled performance with capital returns via dividends and repurchase authorizations. Today’s first-quarter 2026 release continues this pattern, adding detail on Signature Bank integration, balance sheet growth, and ongoing margin expansion.

Key Terms

tangible common shareholders' equity to tangible assets, net interest margin, non-performing assets, assets under management, +4 more

8 terms

tangible common shareholders' equity to tangible assets financial

"Capital ratios including the Tangible common shareholders' equity to tangible assets1 (TCE)..."

The ratio compares the portion of a company's real, measurable net worth that belongs to common shareholders (book equity after removing intangible items like goodwill and excluding preferred stock) with the company's total tangible assets (total assets minus intangibles). Investors use it to see how much of the company's physical and financial resources are financed by common equity rather than debt or non‑common claims; think of it as the percentage of a house’s visible value actually owned by ordinary shareholders, which signals cushion against losses and potential dilution risk.

net interest margin financial

"Net interest margin, on a tax equivalent basis, of 3.37%..."

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

non-performing assets financial

"non-performing assets of 0.04%; and past due loans of 0.17% at March 31, 2026."

Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.

assets under management financial

"Assets under management (AUM) were $1.130 billion at March 31, 2026..."

Assets under management (AUM) is the total value of all the investments that a financial company or fund is responsible for overseeing on behalf of its clients. It’s like a big bucket that shows how much money the firm is managing for people or organizations. A higher AUM often indicates a larger, more trusted company, and it can influence how much money they earn and the services they can offer.

government guaranteed lending financial

"income from the Government Guaranteed Lending line of business that was part of the acquisition..."

A loan or credit line where a government promises to cover some or all of the lender’s losses if the borrower can’t repay, similar to a co-signer stepping in if someone defaults. For investors, these guarantees reduce the risk that banks or lenders will take losses, encourage more lending and economic activity, and change how risky a loan appears on a balance sheet—affecting credit availability, lender stability, and potential recovery in downturns.

small business administration regulatory

"Preferred Lender status from the Small Business Administration."

The Small Business Administration (SBA) is a U.S. government agency that supports small businesses by providing loans, grants, and resources to help them start, grow, and succeed. For investors, the SBA's programs can influence economic stability and small business performance, which in turn can impact overall market trends and local economies. Its role is to make it easier for small businesses to access financing and guidance, fostering entrepreneurship and job creation.

preferred lender status regulatory

"received the Preferred Lender status from the Small Business Administration."

Preferred lender status is an agreement where a borrower or group of borrowers gives one lender priority for providing loans or financing, often with faster approval and simpler paperwork. For investors, it signals a steady, potentially lower-cost stream of business and competitive advantage for the lender—like being on a company’s speed-dial—because that lender is more likely to win repeat deals and earn predictable income.

allowance for credit losses financial

"the allowance for credit losses increased from 1.05% to 1.19%."

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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LEXINGTON, S.C., April 22, 2026 /PRNewswire/ --

Highlights for First Quarter 2026

• Net income of $5.498 million, an increase of 37.6% year-over-year and 13.8% on a linked quarter basis. Net income excluding merger expenses¹ of $6.754 million, an increase of 69.0% year-over-year and 26.1%, on a linked quarter basis.
• Diluted EPS of $0.59 per common share, an increase of 15.7% year-over-year and a decrease of 4.8% on a linked quarter basis. Diluted EPS excluding merger expenses¹ of $0.72, an increase of 41.1% year-over-year and 4.3% on a linked quarter basis.
• Total deposits were $2.048 billion at March 31, 2026 with growth of $298.7 million during the quarter, including $229.8 related to the acquisition of Signature Bank of Georgia ("Signature Bank"). Excluding the impact of the day one Signature Bank acquisition balances, organic deposit growth was $68.9 during the first quarter of 2026, which represents 16.0% linked quarter annualized growth. 
• Total loans were $1.549 billion at March 31, 2026 with growth of $238.1 million during the quarter, including $195.5 million related to the acquisition of Signature Bank. Excluding the impact of the day one Signature Bank acquisition balances, organic loan growth was $42.6 million during the first quarter of 2026, which represents 13.2% linked quarter annualized growth.
• Capital ratios including the Tangible common shareholders' equity to tangible assets¹ (TCE) and the Leverage ratio increased to 7.93% and 9.06%, respectively.
• Net interest margin, on a tax equivalent basis, of 3.37%, an expansion of five basis points compared to the fourth quarter of 2025. This is the eighth consecutive quarter of margin expansion.
• Key credit quality metrics continue to be strong with net charge-offs, including overdrafts, during the first quarter of 2026 of $5 thousand; net loan recoveries, excluding overdrafts, during the quarter of $4 thousand; non-performing assets of 0.04%; and past due loans of 0.17% at March 31, 2026.
• Investment advisory revenue of $2.271 million. Assets under management (AUM) were $1.130 billion at March 31, 2026, compared to the December 31, 2025 AUM amount of $1.170 billion.
• Cash dividend of $0.16 per common share, the 97^th consecutive quarter of cash dividends paid to common shareholders.

Today, First Community Corporation (Nasdaq: FCCO), the holding company for First Community Bank, announced earnings and discussed the results of operations and the company's activities during the first quarter of 2026.

First Community reported net income for the first quarter of 2026 of $5.498 million with diluted earnings per common share of $0.59. This compares to net income and diluted earnings per common share of $3.997 million and $0.51, respectively, year-over-year and $4.830 million and $0.62, respectively, on a linked quarter basis. First quarter of 2026 results include the impact of the acquisition of Signature Bank, which was closed on January 8, 2026. Net income excluding merger expenses¹ was $6.754 million, an increase of 69.0% year-over-year and 26.1%, on a linked quarter basis. Diluted EPS excluding merger expenses¹ was $0.72, an increase of 41.1% year-over-year and 4.3% on a linked quarter basis.

Cash Dividend and Capital

The Board of Directors has approved a cash dividend for the first quarter of 2026 of $0.16 per common share. This dividend is payable on May 19, 2026 to shareholders of record of the company's common stock as of May 5, 2026. First Community President and CEO, Mike Crapps commented, "The entire board is pleased that our performance enables the company to continue its cash dividend for the 97^th consecutive quarter." 

Each of the regulatory capital ratios for the bank exceeds the well capitalized minimum levels currently required by regulatory statute. At March 31, 2026, the bank's regulatory capital ratios, Leverage, Tier I Risk Based and Total Risk Based, were 9.06%, 12.80%, and 13.95%, respectively. This compares to the same ratios as of March 31, 2025 of 8.45%, 12.90%, and 13.99%, respectively. As of March 31, 2026, the bank's Common Equity Tier I ratio was 12.80% compared to 12.90% at March 31, 2025. The bank's Tangible common shareholders' equity to tangible assets¹ (TCE) was 7.93% at March 31, 2026 compared to 7.47% at December 31, 2025 and 6.66% as of March 31, 2025. 

Tangible Book Value (TBV) per share¹ increased during the quarter to $19.88 per share at March 31, 2026, from $19.84 per share as of December 31, 2025, and $17.56 at March 31, 2025. 

During the first quarter of 2026, under the previously approved Share Repurchase Plan, a total of 1,483 shares of the company's common stock were repurchased at an average price of $27.77 and a total value of $41,180. 

Loan Portfolio Quality/Allowance for Credit Losses

The company's asset quality remains strong. The non-performing assets (NPAs) were 0.04% of total assets at March 31, 2026, with $853 thousand in NPAs, which compares to 0.02% and $372 thousand at December 31, 2025. The past due ratio for all loans was 0.17% at March 31, 2026, compared to 0.07% at December 31, 2025. During the first quarter of 2026, the bank had net charge-offs, including overdrafts, of $5 thousand and net loan recoveries, excluding overdrafts, of $4 thousand. During the first quarter of 2026, substandard loans increased $2.7 million primarily due to a $2.4 million loan that was identified during due diligence related to the acquisition of Signature Bank. Although principal and interest payments continue as agreed, the underlying real estate project is unfinished, therefore creating a credit mark of $2.0 million in recognition of the collateral deficiency. Related to this same matter, the allowance for credit losses increased from 1.05% to 1.19%. The ratio of classified loans plus Other Real Estate Owned (OREO) is 1.83% of total bank regulatory risk-based capital at March 31, 2026. 

Balance Sheet

Total loans increased during the first quarter of 2026 by $238.1 million to $1.549 billion at March 31, 2026, compared to $1.311 billion at December 31, 2025. This increase includes $195.5 million related to the acquisition of Signature Bank. Excluding the impact of the day one Signature Bank acquisition balances, organic loan growth was $42.6 million during the first quarter of 2026, which represents 13.2% linked quarter annualized growth. Commercial loan production was a record high at $91.2 million during the first quarter of 2026, a 64.9% increase in production compared to the fourth quarter of 2025. There were also advances of unfunded commercial construction loans of $10.2 million during the first quarter of 2026. Offsetting some of this loan growth were loan payoffs and paydowns in the first quarter of 2026 which were up approximately 57% compared to the fourth quarter of 2025. 

The yield on the loan portfolio was 5.94% in the first quarter of 2026 as compared to 5.84% in the fourth quarter of 2025. Purchase accounting loan amortization on the acquired Signature Bank loan portfolio resulted in amortization expense of $437 thousand thus reducing loan yields by 0.12% during the first quarter of 2026. 

Total deposits increased $298.7 million during the first quarter of 2026 to $2.048 billion at March 31, 2026 compared to $1.750 billion at December 31, 2025, including $229.8 related to the acquisition of Signature Bank. Excluding the impact of the day one Signature Bank acquisition balances, organic deposit growth was $68.9 during the first quarter of 2026, which represents 16.0% linked quarter annualized growth. Pure deposits, which are defined as total deposits less certificates of deposit, increased $291 million on a linked quarter basis to $1.727 billion at March 31, 2026. Securities sold under agreements to repurchase, which are related to customer cash management accounts or business sweep accounts, were $99.8 million at March 31, 2026, a decrease of $7.4 million on a linked quarter basis. Non-interest-bearing deposits increased by $76.6 million on a linked quarter basis to $543.8 million or 26.6% of total deposits at March 31, 2026. The average balance per customer deposit account as of March 31, 2026 was $34,882, with the average balance per consumer account of $18,169 and per non-consumer account of $75,642. All of the above point to the granularity and the quality of the bank's deposit franchise. Costs of deposits increased seven basis points to 1.80% in the first quarter of 2026 compared to 1.73% in the fourth quarter of 2025. Cost of funds increased five basis points on a linked quarter basis to 1.85% in the first quarter of 2026 from 1.80% in the fourth quarter of 2025. 

The bank has other short-term investments, primarily interest bearing cash at the Federal Reserve Bank, of $182.5 million at March 31, 2026 compared to $137.2 million at December 31, 2025. The investment portfolio was $512.6 million at March 31, 2026 compared to $492.2 million at December 31, 2025. The yield increased to 3.32% during the first quarter of 2026 as compared to 3.30% in the fourth quarter of 2025. The effective duration of the total investment portfolio is 3.3 at March 31, 2026. Accumulated Other Comprehensive Loss (AOCL) was $18.8 million at March 31, 2026 compared to $18.4 million at December 31, 2025.

Net Interest Income/Net Interest Margin

Net interest income was $18.4 million in the first quarter of 2026 compared to $16.3 million in the fourth quarter of 2025 and $14.4 million in the first quarter of 2025. The net interest margin, on a tax equivalent basis, was 3.37% for the first quarter of 2026 compared to 3.32% in the fourth quarter of 2025 and 3.13% in the first quarter of 2025. This margin expansion was driven by a combination of factors including improved loan portfolio yield and the growth in the loan portfolio. Purchase accounting amortization on the acquired Signature Bank loan portfolio resulted in amortization expense of $437 thousand thus reducing net interest margin by 0.08% during the first quarter of 2026. 

Non-Interest Income

Non-interest income for the first quarter of 2026 was $4.790 million, compared to $4.288 million in the fourth quarter of 2025 and $3.982 million in the first quarter of 2025, an increase of 11.7% and 20.3%, respectively. Non-interest income for the first quarter of 2026 includes income from the Government Guaranteed Lending line of business that was part of the acquisition of Signature Bank and is discussed further below.

Total production in the mortgage line of business in the first quarter of 2026 was $42.0 million which was comprised of $25.4 million in secondary market loans, $1.9 million in adjustable rate mortgages (ARMs), and $14.7 million in construction loans. Total fee revenue in the mortgage line of business was $681 thousand in the first quarter of 2026, which includes $673 thousand associated with the secondary market loans with a gain-on-sale margin of 2.65%. This compares to production year-over-year of $43.9 million which was comprised of $25.8 million in secondary market loans, $4.0 million in ARMs, and $14.1 million in construction loans during the first quarter of 2025. Fee revenue associated with the secondary market loans in the first quarter of 2025 was $755 thousand with a gain-on-sale margin of 2.93%.

Revenue from the financial planning and investment advisory line of business was $2.271 million for the first quarter of 2026 compared to $2.146 million in the fourth quarter of 2025 and $1.806 million in the first quarter of 2025. Assets Under Management (AUM) were $1.130 billion at March 31, 2026, compared to $1.170 billion at December 31, 2025 and $892.8 million at March 31, 2025. 

Fee revenue from the Government Guaranteed Lending line of business was $395 thousand in the first quarter of 2026. Production in this line of business in the first quarter of 2026 included $2.36 million in SBA loans. During the quarter, the company sold $2.021 million in loans, which resulted in a premium of $194 thousand and a gain-on-sale margin of 9.59%. Loan volume was temporarily impacted by the federal government shutdowns which affected the processing of loans in the pipeline. On April 10, 2026, First Community Bank received the Preferred Lender status from the Small Business Administration. With the shutdown resolved and the Preferred Lender status in place, the company is well positioned for future production in this line of business. 

Non-Interest Expense

Non-interest expense was $17.031 million in the first quarter of 2026 which included $1.581million in merger expenses. 

Other

On January 8, 2026, the company closed its previously announced acquisition of Signature Bank and completed the bank systems conversion in March of 2026. With this acquisition, the company expanded its footprint into the Atlanta, Georgia market and added a Government Guaranteed Lending line of business. 

During the first quarter of 2026, the company purchased $12.544 million in federal tax credits for $11.666 million, which resulted in a benefit to income tax expense of $878 thousand.

About First Community Corporation

First Community Corporation stock trades on The NASDAQ Capital Market under the symbol "FCCO" and is the holding company for First Community Bank, a local community bank based in the Midlands of South Carolina. First Community Bank is a full-service commercial bank offering deposit and loan products and services, residential mortgage lending, financial planning/investment advisory services, and SBA/USDA lending. First Community serves customers in the Midlands, Aiken, Upstate and Piedmont Regions of South Carolina as well as Augusta and Atlanta, Georgia. For more information, visit www.firstcommunitysc.com.

FORWARD-LOOKING STATEMENTS

This news release and certain statements by our management may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans, goals, projections and expectations, and are thus prospective. Forward-looking statements can be identified by words such as "anticipate", "expects", "intends", "believes", "may", "likely", "will", "plans", "positions", "future", "forward", or other statements that indicate future periods. Such risks, uncertainties and other factors, include, among others, the following: (1) the risk that anticipated cost savings or other expected benefits of the acquisition of Signature Bank of Georgia may not be realized; (2) potential disruption to client or employee relationships as a result of the acquisition of Signature Bank of Georgia; (3) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (4) the strength of the United States economy in general and the strength of the local economies in which we conduct operations may be different than expected; (5) the rate of delinquencies and amounts of charge-offs, the level of allowance for credit loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (6) changes in legislation, regulation, policies or administrative practices, whether by judicial, governmental, or legislative action; (7) adverse conditions in the stock market, the public debt markets and other capital markets (including changes in interest rate conditions) could continue to have a negative impact on the company; (8) changes in interest rates, which have and may continue to affect our deposit and funding costs, net income, prepayment penalty income, mortgage banking income, and other future cash flows, or the market value of our assets, including our investment securities; (9) technology and cybersecurity risks, including potential business disruptions, reputational risks, and financial losses, associated with potential attacks on or failures by our computer systems and computer systems of our vendors and other third parties; (10) elevated inflation which causes adverse risk to the overall economy, and could indirectly pose challenges to our customers and to our business; (11) any increases in FDIC assessment which has increased, and may continue to increase, our cost of doing business; (12) the adverse effects of events beyond our control that may have a destabilizing effect on financial markets and the economy, such as epidemics and pandemics, war or terrorist activities, essential utility outages, government shutdowns, deterioration in the global economy, instability in the credit markets, disruptions in our customers' supply chains or disruption in transportation; and (13) risks, uncertainties and other factors disclosed in our most recent Annual Report on Form 10-K filed with the SEC, or in any of our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K filed with the SEC since the end of the fiscal year covered by our most recently filed Annual Report on Form 10-K, which are available at the SEC's Internet site (http://www.sec.gov).

Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. We can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

1	Considered non-GAAP financial measure – See Non-GAAP Financial Measures and reconciliation of non-GAAP financial measures to GAAP on pages 10 and 11.

FIRST COMMUNITY CORPORATION
BALANCE SHEET DATA
(Dollars in thousands, except per share data)
		As of
		March 31,	December 31,	September 30,	June 30,	March 31,
		2026	2025	2025	2025	2025
Total Assets		$    2,391,531	$    2,057,732	$    2,066,598	$    2,046,265	$    2,039,371
Other Short-term Investments and CDs1		182,497	137,184	163,237	151,323	173,246
Investment Securities
Investments Held-to-Maturity		188,728	195,135	198,824	201,761	205,819
Investments Available-for-Sale		320,710	294,109	299,529	302,627	286,944
Other Investments at Cost		3,204	2,942	2,942	2,894	2,894
Total Investment Securities		512,642	492,186	501,295	507,282	495,657
Loans Held-for-Sale		6,936	10,737	8,970	10,975	7,052
Loans		1,549,143	1,311,019	1,279,310	1,260,055	1,251,980
Allowance for Credit Losses - Investments		16	19	19	19	24
Allowance for Credit Losses - Loans		18,364	13,806	13,478	13,330	13,608
Allowance for Credit Losses - Unfunded Commitments		654	531	529	490	455
Goodwill		31,140	14,637	14,637	14,637	14,637
Other Intangibles		2,805	289	328	368	407
Total Deposits		2,048,264	1,749,544	1,771,164	1,754,041	1,725,718
Securities Sold Under Agreements to Repurchase		99,835	107,189	99,614	103,640	129,812
Junior Subordinated Debt		14,964	14,964	14,964	14,964	14,964
Accumulated Other Comprehensive Loss (AOCL)		(18,834)	(18,401)	(20,173)	(21,863)	(22,973)
Shareholders' Equity		220,817	167,557	161,568	155,500	149,959
Book Value Per Common Share		$           23.50	$           21.78	$           21.01	$           20.23	$           19.52
Tangible Book Value Per Common Share (non-GAAP)		$           19.88	$           19.84	$           19.06	$           18.28	$           17.56
Equity to Assets		9.23 %	8.14 %	7.82 %	7.60 %	7.35 %
Tangible Common Equity to Tangible Assets (TCE Ratio) (non-GAAP)		7.93 %	7.47 %	7.15 %	6.92 %	6.66 %
Loan to Deposit Ratio (Includes Loans Held-for-Sale)		75.97 %	75.55 %	72.74 %	72.46 %	72.96 %
Loan to Deposit Ratio (Excludes Loans Held-for-Sale)		75.63 %	74.93 %	72.23 %	71.84 %	72.55 %
Allowance for Credit Losses - Loans/Loans		1.19 %	1.05 %	1.05 %	1.06 %	1.09 %
Regulatory Capital Ratios (Bank):
Leverage Ratio		9.06 %	8.66 %	8.55 %	8.44 %	8.45 %
Tier 1 Capital Ratio		12.80 %	13.11 %	13.10 %	13.04 %	12.90 %
Total Capital Ratio		13.95 %	14.16 %	14.15 %	14.10 %	13.99 %
Common Equity Tier 1 Capital Ratio		12.80 %	13.11 %	13.10 %	13.04 %	12.90 %
Tier 1 Regulatory Capital		$       210,758	$       179,295	$       175,471	$       171,611	$       167,673
Total Regulatory Capital		$       229,791	$       193,650	$       189,497	$       185,450	$       181,759
Common Equity Tier 1 Capital		$       210,758	$       179,295	$       175,471	$       171,611	$       167,673
1Includes federal funds sold and interest-bearing deposits
Average Balances:		Three months ended
		March 31,		December 31,		March 31,
		2026		2025		2025
Average Total Assets		$    2,352,005		$    2,072,128		$    1,981,493
Average Loans (Includes Loans Held-for-Sale)		1,511,496		1,302,826		1,239,225
Average Investment Securities		503,555		496,901		492,190
Average Short-term Investments and CDs1		206,185		166,191		140,611
Average Earning Assets		2,221,236		1,965,918		1,872,026
Average Deposits		1,978,198		1,772,485		1,669,418
Average Other Borrowings		136,904		116,907		145,745
Average Shareholders' Equity		215,573		164,514		146,737
Asset Quality:		As of
		March 31,	December 31,	September 30,	June 30,	March 31,
		2026	2025	2025	2025	2025
Loan Risk Rating by Category (End of Period)
Special Mention		$           5,713	$           5,186	$           2,948	$           2,506	$           2,357
Substandard		4,009	1,306	1,314	1,323	1,333
Doubtful		-	-	-	-	-
Pass		1,539,421	1,304,527	1,275,048	1,256,226	1,248,290
Total Loans		$    1,549,143	$    1,311,019	$    1,279,310	$    1,260,055	$    1,251,980
Nonperforming Assets
Non-accrual Loans		$              311	$              202	$              205	$              210	$              215
Other Real Estate Owned and Repossessed Assets		168	168	194	194	437
Accruing Loans Past Due 90 Days or More		374	2	482	66	6
Total Nonperforming Assets		$              853	$              372	$              881	$              470	$              658
		Three months ended
		March 31,		December 31,		March 31,
		2026		2025		2025
Loans Charged-off		$                 2		$               10		$                -
Overdrafts Charged-off		13		40		9
Loan Recoveries		(6)		(6)		(14)
Overdraft Recoveries		(4)		(4)		(6)
Net Charge-offs (Recoveries)		$                 5		$               40		$              (11)
Net Charge-offs / (Recoveries) to Average Loans2		0.00 %		0.01 %		(0.00 %)

1	Includes federal funds sold and interest-bearing deposits
2	Annualized

FIRST COMMUNITY CORPORATION
INCOME STATEMENT DATA
(Dollars in thousands, except per share data)
		Three months ended
		March 31,		December 31,		March 31,
		2026		2025		2025
Interest income		$    28,039		$    24,897		$    23,082
Interest expense		9,670		8,583		8,692
Net interest income		18,369		16,314		14,390
Provision for (release of) credit losses		193		369		437
Net interest income after provision for (release of) credit losses		18,176		15,945		13,953
Non-interest income
Deposit service charges		223		234		221
Mortgage banking income		681		698		759
Investment advisory fees and non-deposit commissions		2,271		2,146		1,806
Government guaranteed lending income		395		-		-
Other non-recurring income		-		2		-
Other		1,220		1,208		1,196
Total non-interest income		4,790		4,288		3,982
Non-interest expense
Salaries and employee benefits		9,492		8,173		7,657
Occupancy		817		801		777
Equipment		379		395		390
Marketing and public relations		560		542		514
FDIC assessment		272		257		300
Other real estate expenses		4		4		12
Amortization of intangibles		96		40		39
Merger expenses		1,581		455		-
Other		3,830		3,160		3,065
Total non-interest expense		17,031		13,827		12,754
Income before taxes		5,935		6,406		5,181
Income tax expense		437		1,576		1,184
Net income		$      5,498		$      4,830		$     3,997
Per share data
Net income, basic		$        0.60		$        0.63		$       0.52
Net income, diluted		$        0.59		$        0.62		$       0.51
Average number of shares outstanding - basic		9,215,205		7,671,825		7,647,537
Average number of shares outstanding - diluted		9,344,816		7,786,731		7,767,978
Shares outstanding period end		9,397,960		7,693,215		7,681,601
Return on average assets		0.95 %		0.92 %		0.82 %
Return on average common equity		10.34 %		11.65 %		11.05 %
Return on average tangible common equity (non-GAAP)		12.16 %		12.81 %		12.31 %
Net interest margin (non taxable equivalent)		3.35 %		3.29 %		3.12 %
Net interest margin (taxable equivalent)		3.37 %		3.32 %		3.13 %
Efficiency ratio1		66.46 %		64.51 %		69.23 %

1	Calculated by dividing non-interest expense less merger expenses by net interest income on tax equivalent basis and non interest income, excluding other non-recurring income.

FIRST COMMUNITY CORPORATION
Yields on Average Earning Assets and
Rates on Average Interest-Bearing Liabilities
(Dollars in thousands)
	Three months ended March 31, 2026				Three months ended March 31, 2025
	Average	Interest	Yield/		Average	Interest	Yield/
	Balance	Earned/Paid	Rate		Balance	Earned/Paid	Rate
Assets
Earning assets
Loans	$     1,511,496	$          22,129	5.94 %		$    1,239,225	$        17,444	5.71 %
Non-taxable securities	42,981	324	3.06 %		46,986	342	2.95 %
Taxable securities	460,574	3,800	3.35 %		445,204	3,808	3.47 %
Int bearing deposits in other banks	205,972	1,784	3.51 %		140,548	1,487	4.29 %
Fed funds sold	213	2	3.81 %		63	1	6.44 %
Total earning assets	2,221,236	28,039	5.12 %		1,872,026	23,082	5.00 %
Cash and due from banks	28,395				24,632
Premises and equipment	29,885				29,874
Goodwill and other intangibles	32,279				15,063
Other assets	57,822				53,138
Allowance for credit losses - investments	(19)				(23)
Allowance for credit losses - loans	(17,593)				(13,217)
Total assets	$     2,352,005				$    1,981,493
Liabilities
Interest-bearing liabilities
Interest-bearing transaction accounts	$        515,148	$           2,226	1.75 %		$       331,897	$            965	1.18 %
Money market accounts	493,628	3,551	2.92 %		440,282	3,319	3.06 %
Savings deposits	105,599	47	0.18 %		113,070	79	0.28 %
Time deposits	348,870	2,937	3.41 %		333,615	3,246	3.95 %
Fed funds purchased	-	-	NA		2	-	0.00 %
Securities sold under agreements to repurchase	121,940	664	2.21 %		130,779	814	2.52 %
FHLB Advances	-	-	NA		-	-	NA
Other long-term debt	14,964	245	6.64 %		14,964	269	7.29 %
Total interest-bearing liabilities	1,600,149	9,670	2.45 %		1,364,609	8,692	2.58 %
Demand deposits	514,953				450,554
Allowance for credit losses - unfunded commitments	670				480
Other liabilities	20,660				19,113
Shareholders' equity	215,573				146,737
Total liabilities and shareholders' equity	$     2,352,005				$    1,981,493
Cost of deposits, including demand deposits			1.80 %				1.85 %
Cost of funds, including demand deposits			1.85 %				1.94 %
Net interest spread			2.67 %				2.42 %
Net interest income/margin		$          18,369	3.35 %			$        14,390	3.12 %
Net interest income/margin (tax equivalent)		$          18,456	3.37 %			$        14,441	3.13 %

The tables below provide a reconciliation of non‑GAAP measures to GAAP for the periods indicated:

			March  31,			December  31,				September  30,			June  30,			March  31,
Tangible book value per common share			2026			2025				2025			2025			2025
Tangible common equity per common share (non‑GAAP)		$	19.88		$	19.84		$		19.06		$	18.28		$	17.56
Effect to adjust for intangible assets			3.62			1.94				1.95			1.95			1.96
Book value per common share (GAAP)		$	23.50		$	21.78		$		21.01		$	20.23		$	19.52
Tangible common shareholders' equity to tangible assets
Tangible common equity to tangible assets (non‑GAAP)			7.93	%		7.47	%			7.15	%		6.92	%		6.66	%
Effect to adjust for intangible assets			1.30	%		0.67	%			0.67	%		0.68	%		0.69	%
Common equity to assets (GAAP)			9.23	%		8.14	%			7.82	%		7.60	%		7.35	%

	Three months ended
	March 31,			December 31,			March 31,
Return on average tangible common equity		2026			2025			2025
Return on average tangible common equity (non‑GAAP)		12.16 %			12.81 %			12.31 %
Effect to adjust for intangible assets		(1.82) %			(1.16) %			(1.26) %
Return on average common equity (GAAP)		10.34 %			11.65 %			11.05 %
	Three months ended
	March 31,			December 31,			March 31,
Pre-tax, pre-provision earnings		2026			2025			2025
Pre-tax, pre-provision earnings (non‑GAAP)	$	6,128		$	6,775		$	5,618
Effect to adjust for pre-tax, pre-provision earnings		(630)			(1,945)			(1,621)
Net Income (GAAP)	$	5,498		$	4,830		$	3,997
	Three months ended
	March 31,			December 31,			March 31,
Net income excluding the after-tax effect of merger expenses		2026			2025			2025
Net income excluding the after-tax effect of merger expenses (non‑GAAP)	$	6,754		$	5,357		$	3,997
Effect to adjust for the after-tax effect of merger expenses		(1,256)			(527)			-
Net Income (GAAP)	$	5,498		$	4,830		$	3,997
	Three months ended
	March 31,			December 31,			March 31,
Diluted earnings per common share excluding the after- tax effect of merger expenses		2026			2025			2025
Diluted earnings per common share excluding the after-tax effect of merger expenses (non‑GAAP)	$	0.72		$	0.69		$	0.51
Effect to adjust for the after-tax effect of merger expenses		(0.13)			(0.07)			-
Diluted earnings per common share (GAAP)	$	0.59		$	0.62		$	0.51

Certain financial information presented above is determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). These non-GAAP financial measures include "Tangible book value per common share," "Tangible common shareholders' equity to tangible assets," "Return on average tangible common equity," "Pre-tax, pre-provision earnings," "Net income excluding the after-tax effect of merger expenses," "Diluted earnings per common share excluding the after-tax effect of merger expenses." 

• "Tangible book value per common share" is defined as total equity reduced by recorded intangible assets divided by total common shares outstanding.
• "Tangible common shareholders' equity to tangible assets" is defined as total common equity reduced by recorded intangible assets divided by total assets reduced by recorded intangible assets.
• "Return on average tangible common equity" is defined as net income on an annualized basis divided by average total equity reduced by average recorded intangible assets. 
• "Pre-tax, pre-provision earnings" is defined as net interest income plus non-interest income, reduced by non-interest expense.
• "Net income excluding the after-tax effect of merger expenses" is defined as net income plus merger expenses less income taxes on merger expenses. For purposes of our non‑GAAP reconciliation, deductible merger expenses were tax‑effected at our marginal tax rate of 23.84%, while non‑deductible merger‑related costs were tax‑effected at 0%. The after‑tax adjustment represents the combination of these two components.
• "Diluted earnings per common share excluding the after-tax effect of merger expenses" is defined as net income plus merger expenses, less income taxes on merger expenses, divided by the average number of diluted shares outstanding. For purposes of our non‑GAAP reconciliation, deductible merger expenses were tax‑effected at our marginal tax rate of 23.84%, while non‑deductible merger‑related costs were tax‑effected at 0%. The after‑tax adjustment represents the combination of these two components.

Our management believes that these non-GAAP measures are useful because they enhance the ability of investors and management to evaluate and compare our operating results from period-to-period in a meaningful manner. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results as reported under GAAP.

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SOURCE First Community Corporation

FAQ

What did First Community (FCCO) report for Q1 2026 net income and EPS?

Direct answer: First Community reported $5.498M net income and $0.59 diluted EPS for Q1 2026. Supporting context: According to the company, excluding merger expenses net income was $6.754M and diluted EPS $0.72.

How did the Signature Bank acquisition affect FCCO deposits and loans in Q1 2026?

Direct answer: The Signature Bank acquisition added $229.8M deposits and $195.5M loans on day one. Supporting context: According to the company, organic deposit growth was $68.9M and organic loan growth $42.6M excluding acquisition balances.

What dividend did First Community (FCCO) declare for Q1 2026 and when is it payable?

Direct answer: The board declared a $0.16 per-share cash dividend for Q1 2026. Supporting context: According to the company, the dividend is payable on May 19, 2026 to shareholders of record as of May 5, 2026.

What was FCCO's net interest margin and what drove the change in Q1 2026?

Direct answer: Net interest margin was 3.37% in Q1 2026, up five basis points sequentially. Supporting context: According to the company, margin expansion was driven by improved loan yields and loan growth, partly offset by purchase accounting amortization.

How strong were First Community's credit metrics at March 31, 2026 (FCCO)?

Direct answer: Credit metrics remained strong: NPAs 0.04% and past due loans 0.17% at March 31, 2026. Supporting context: According to the company, net charge-offs were minimal and allowance for credit losses rose to 1.19% following acquisition diligence.

What shareholder‑capital metrics did FCCO report after Q1 2026?

Direct answer: Tangible book value per share was $19.88 and TCE rose to 7.93% at March 31, 2026. Supporting context: According to the company, regulatory ratios remained above well-capitalized levels, including a Leverage ratio of 9.06%.