First Community Corporation Announces Leadership Transition, Second Quarter Results and Increased Cash Dividend
Rhea-AI Summary
First Community Corporation (Nasdaq: FCCO) announced a planned leadership transition at First Community Bank and reported strong second quarter 2026 results. Bank CEO and President J. Ted Nissen will retire effective December 31, 2026, remaining as a consultant through December 31, 2027 due to personal health reasons. Effective January 1, 2027, Vaughan R. Dozier will become Chief Executive Officer and Joseph A. “Drew” Painter will become President of the bank, both joining the bank and company boards. Mike Crapps will continue as CEO and President of First Community Corporation.
For Q2 2026, net income was $7.595 million, up 46.5% year-over-year, with diluted EPS of $0.80, up 19.4% year-over-year. Net income excluding merger expenses was $7.979 million. Year-to-date net income reached $13.093 million, up 42.6% from 2025, or $14.733 million excluding merger expenses. Total loans were $1.578 billion and total deposits $2.025 billion at June 30, 2026, with organic deposit and loan growth when excluding the Signature Bank of Georgia acquisition.
The company reported a tax-equivalent net interest margin of 3.51%, its ninth consecutive quarter of expansion, strong credit quality with non-performing assets at 0.04%, and improved tangible common equity and leverage ratios of 8.37% and 9.29%, respectively. The board approved an increased cash dividend of $0.17 per share, payable August 18, 2026, marking the 98th consecutive quarterly dividend. A share repurchase plan of up to $7.5 million through May 7, 2027 was also authorized.
Positive
- Q2 2026 net income $7.595M, up 46.5% year-over-year
- Q2 2026 diluted EPS $0.80, up 19.4% year-over-year and 35.6% linked quarter
- Net income YTD $13.093M, up 42.6% vs. first half 2025
- Net interest margin 3.51%, up 14 bps, ninth straight quarterly expansion
- Non-performing assets 0.04% of total assets with minimal net charge-offs
- Increased quarterly dividend to $0.17 per share, 98 consecutive dividends
- Share repurchase authorization $7.5M, about 3.3% of shareholders’ equity
- Tangible common equity ratio 8.37%, up from 6.92% a year earlier
Negative
- Period-end deposits $2.025B, down from $2.048B at March 31, 2026
- Loan payoffs and paydowns up approximately 17.6% vs. first quarter 2026
- Signature Bank purchase accounting amortization $178K reduced net interest margin by 3 bps in Q2 2026
News Market Reaction – FCCO
In the Jul 22 session, FCCO gained 0.79%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 22 | 1Q26 earnings report | Positive | +1.6% | Q1 2026 results, deposit and loan growth, margin expansion, and dividend announcement. |
| Jan 28 | 4Q25 earnings report | Positive | +0.9% | 2025 earnings growth, margin expansion, dividend, and share-repurchase authorization. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The two recent earnings-and-dividend announcements were followed by positive 24-hour reactions of 1.59% and 0.94%.
Key Terms
net interest margin financial
non-performing assets financial
common equity tier i regulatory
tangible book value financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
The company announced that J. Ted Nissen will retire from his role as CEO and President of First Community Bank and as a director of the bank and its holding company, First Community Corporation, effective December 31, 2026. Mr. Nissen is a founding member of the bank's Executive Leadership Team and he has dedicated over four decades to the banking industry, thirty-one of those years at First Community Bank. He has served many industry and community organizations throughout his career including the South Carolina Bankers Association, the South Carolina Small Business Development Corporation, and the Lexington Medical Center Foundation, all of which have benefited from his talents and his commitment to actively supporting our industry and our local community. Mike Crapps, CEO and President of First Community Corporation, commented on Mr. Nissen's retirement by saying, "Through his passion and hard work, Ted has contributed so much to so many during his very distinguished career. His contributions to First Community Bank have been significant, his impact is felt throughout our organization, and we will continue to benefit from the legacy that he has created for years to come. Words are not adequate to express our thanks to Ted for all that he has done for First Community and for all that he has meant to our board, our executive team, our employees, our customers, and our community members. We all wish him well as he moves into this next season."
With Mr. Nissen's retirement, the CEO and President role will be split and effective January 1, 2027, Vaughan R. Dozier will become Chief Executive Officer of First Community Bank and Joseph A. "Drew" Painter will become President of the bank. With their new roles, Mr. Dozier and Mr. Painter will join the company's and bank's board of directors. In his new position as CEO, Mr. Dozier will be responsible for overall bank operations and the oversight of the bank's Executive Leadership Team including finance, credit, risk, operations, human resources, and marketing as well as the bank's residential mortgage lending line of business. As President, Mr. Painter will be responsible for commercial and retail banking, financial planning and investment advisory services, and government guaranteed lending, as well as the bank's Business Services and Branch Administration areas. Mr. Dozier and Mr. Painter are both seasoned bankers with long tenures with First Community, eighteen and twenty-three years, respectively. Both have much institution and industry knowledge that they will bring to their new roles. Both understand First Community's business and culture on a deep level. Each has been incredibly successful in their various roles with the bank, having most recently served as Co-Commercial and Retail Banking Officers leading significant geographic regions for the bank in addition to their service on the bank's Executive Leadership Team. Each has graduated from the First Community Bank Leadership Institute and each has also been recognized by the South Carolina Bankers Association as a Young Banker of the Year.
Also, effective January 1, 2027, Michael Cromer and Trey Werner will assume the roles of Regional Executives, each responsible for the oversight of a geographic region of First Community's network of banking offices. Mr. Cromer will oversee the
Mike Crapps will continue in his role as CEO and President of First Community Corporation focusing on board and corporate governance, investor relations, strategy, balance sheet and capital management, and leadership development.
Commenting on the announced leadership transition, First Community board Chairman Jimmy Chao said, "The long-term success and sustainability of First Community Bank has been and continues to be an ongoing focus of our company and we have made it a priority to invest in our people to prepare them for future leadership opportunities. This current leadership transition began in 2023 and it has been implemented in stages over these past several years. Historically, most of our bank's growth and success has been driven organically under the leadership of Vaughan and Drew. We are committed to a seamless and successful leadership transition of the CEO and President roles to Vaughan and Drew and have great confidence in their partnership leading our bank to even greater success. While Ted has chosen to leave his role a little earlier than planned due to personal health reasons, we are fortunate that he will continue in a consulting role through December 31, 2027 to help ensure a smooth transition. Our board of directors is incredibly grateful to Ted for all of his many contributions to First Community through the years. He has generously shared his time and talents with our company and led with a servant's heart to impact lives for success and significance."
In addition to announcing the leadership transition, First Community announced results for the second quarter of 2026.
Highlights for the second quarter of 2026 include:
- Net income of
$7.595 million 46.5% year-over-year and38.1% on a linked quarter basis. Net income excluding merger expenses1 during the quarter of$7.979 million 48.7% year-over-year and18.1% , on a linked quarter basis. - Net income for the six months ended June 30, 2026 of
$13.093 million 42.6% increase over the same time period in 2025. Net income for the six months ended June 30, 2026, excluding merger expenses1, of$14.733 million 57.4% year-over-year. - Diluted EPS of
$0.80 19.4% year-over-year and35.6% on a linked quarter basis. Diluted EPS excluding merger expenses1 of$0.84 21.7% year-over-year and16.7% on a linked quarter basis. - Diluted EPS of
$1.39 17.8% over the same time period in 2025. Diluted EPS excluding merger expenses1 of$1.56 30.0% over the same time period in 2025. - Total deposits were
$2.025 billion $275.3 million $229.8 million Georgia that closed on January 8, 2026. Excluding the impact of day one Signature Bank acquisition balances, organic deposit growth was$45.5 million 5.2% . - Total loans were
$1.578 billion $29.1 million 7.5% . Year-to-date loan growth is$267.3 million $195.7 million $71.6 million 11.0% annualized growth rate. - Capital ratios including the Tangible common shareholders' equity to tangible assets1 (TCE) and the Leverage ratio increased to
8.37% and9.29% , respectively. - Net interest margin, on a tax equivalent basis, of
3.51% , an expansion of fourteen basis points compared to the first quarter of 2026. This is the ninth consecutive quarter of margin expansion. - Key credit quality metrics continue to be strong with net charge-offs, including overdrafts, during the second quarter of 2026 of
$21 thousand $3 thousand 0.04% ; and past due loans of0.26% at June 30, 2026. - Investment advisory revenue of
$2.286 million 30.6% year-over-year and0.7% on a linked quarter basis. Year to date investment advisory revenue of$4.557 million 28.1% over the same time period in 2025. Assets under management (AUM) were$1.378 billion $1.130 billion $1.170 billion - Mortgage income of
$1.070 million 21.7% year-over-year and57.1% on a linked quarter basis. Year-to-date mortgage income of$1.751 million 6.90% over the same time period in 2025. - Government Guaranteed Lending fee income of
$704 thousand $16.140 million $8.94 million 7.50% . - Cash dividend of
$0.17
Earnings
Net income for the second quarter of 2026 was
Year-to-date through June 30, 2026, net income was
Cash Dividend and Capital
The Board of Directors has approved an increased cash dividend for the second quarter of 2026 of
Each of the regulatory capital ratios for the bank exceeds the well capitalized minimum levels currently required by regulatory statute. At June 30, 2026, the bank's regulatory capital ratios, Leverage, Tier I Risk Based and Total Risk Based, were
Tangible Book Value (TBV) per share1 increased during the quarter to
On May 7, 2026, the company announced that it had approved a plan to utilize up to
Loan Portfolio Quality/Allowance for Credit Losses
The company's asset quality remains strong. The non-performing assets (NPAs) were
Balance Sheet
Total loans increased during the second quarter of 2026 by
The yield on the loan portfolio was
Total deposits were
The bank has other short-term investments, primarily interest-bearing cash at the Federal Reserve Bank, of
Net Interest Income/Net Interest Margin
Net interest income was
Non-Interest Income
Non-interest income for the second quarter of 2026 was
Total production in the mortgage line of business in the second quarter of 2026 was
Revenue from the financial planning and investment advisory line of business was
Total fee revenue from the Government Guaranteed Lending line of business was
Non-Interest Expense
Non-interest expense was
Other
During the second quarter of 2026, the company purchased
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 STATEMENT
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, including statements regarding the anticipated timing and benefits of the leadership transition, the consulting arrangement with Mr. Nissen, and the expected roles and responsibilities of the company's executive officers, 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 disruptions in transportation; (13) risks associated with the planned leadership transition, including the ability to retain key employees, maintain client relationships, and successfully integrate new executive responsibilities; and (14) 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 12 and 13. |
FIRST COMMUNITY CORPORATION | ||||||
BALANCE SHEET DATA | ||||||
(Dollars in thousands, except per share data) | ||||||
As of | ||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||
2026 | 2026 | 2025 | 2025 | 2025 | ||
Total Assets | $ 2,372,348 | $ 2,391,531 | $ 2,057,732 | $ 2,066,598 | $ 2,046,265 | |
Other Short-term Investments and CD's1 | 130,516 | 182,497 | 137,184 | 163,237 | 151,323 | |
Investment Securities | ||||||
Investments Held-to-Maturity | 184,974 | 188,728 | 195,135 | 198,824 | 201,761 | |
Investments Available-for-Sale | 322,596 | 320,710 | 294,109 | 299,529 | 302,627 | |
Other Investments at Cost | 3,252 | 3,204 | 2,942 | 2,942 | 2,894 | |
Total Investment Securities | 510,822 | 512,642 | 492,186 | 501,295 | 507,282 | |
Loans Held-for-Sale | 11,946 | 6,936 | 10,737 | 8,970 | 10,975 | |
Loans | 1,578,292 | 1,549,143 | 1,311,019 | 1,279,310 | 1,260,055 | |
Allowance for Credit Losses - Investments | 14 | 16 | 19 | 19 | 19 | |
Allowance for Credit Losses - Loans | 18,515 | 18,364 | 13,806 | 13,478 | 13,330 | |
Allowance for Credit Losses - Unfunded Commitments | 609 | 654 | 531 | 529 | 490 | |
Goodwill | 29,399 | 29,399 | 14,637 | 14,637 | 14,637 | |
Other Intangibles | 2,681 | 2,785 | 289 | 328 | 368 | |
Total Deposits | 2,024,840 | 2,048,264 | 1,749,544 | 1,771,164 | 1,754,041 | |
Securities Sold Under Agreements to Repurchase | 96,546 | 99,835 | 107,189 | 99,614 | 103,640 | |
Federal Funds Purchased | - | - | - | - | - | |
Federal Home Loan Bank Advances | - | - | - | - | - | |
Junior Subordinated Debt | 14,964 | 14,964 | 14,964 | 14,964 | 14,964 | |
Accumulated Other Comprehensive Loss (AOCL) | (18,224) | (18,834) | (18,401) | (20,173) | (21,863) | |
Shareholders' Equity | 227,985 | 220,817 | 167,557 | 161,568 | 155,500 | |
Book Value Per Common Share | $ 24.25 | $ 23.50 | $ 21.78 | $ 21.01 | $ 20.23 | |
Tangible Book Value Per Common Share (non-GAAP) | $ 20.84 | $ 20.07 | $ 19.84 | $ 19.06 | $ 18.28 | |
Equity to Assets | 9.61 % | 9.23 % | 8.14 % | 7.82 % | 7.60 % | |
Tangible Common Equity to Tangible Assets (TCE Ratio) (non-GAAP) | 8.37 % | 8.00 % | 7.47 % | 7.15 % | 6.92 % | |
Loan to Deposit Ratio (Includes Loans Held-for-Sale) | 78.54 % | 75.97 % | 75.55 % | 72.74 % | 72.46 % | |
Loan to Deposit Ratio (Excludes Loans Held-for-Sale) | 77.95 % | 75.63 % | 74.93 % | 72.23 % | 71.84 % | |
Allowance for Credit Losses - Loans/Loans | 1.17 % | 1.19 % | 1.05 % | 1.05 % | 1.06 % | |
Regulatory Capital Ratios (Bank): | ||||||
Leverage Ratio | 9.29 % | 9.09 % | 8.66 % | 8.55 % | 8.44 % | |
Tier 1 Capital Ratio | 12.98 % | 12.82 % | 13.11 % | 13.10 % | 13.04 % | |
Total Capital Ratio | 14.13 % | 13.98 % | 14.16 % | 14.15 % | 14.10 % | |
Common Equity Tier 1 Capital Ratio | 12.98 % | 12.82 % | 13.11 % | 13.10 % | 13.04 % | |
Tier 1 Regulatory Capital | $ 217,585 | $ 211,380 | $ 179,295 | $ 175,471 | $ 171,611 | |
Total Regulatory Capital | $ 236,724 | $ 230,413 | $ 193,650 | $ 189,497 | $ 185,450 | |
Common Equity Tier 1 Capital | $ 217,585 | $ 211,380 | $ 179,295 | $ 175,471 | $ 171,611 | |
1 Includes federal funds sold and interest-bearing deposits | ||||||
Average Balances: | Three months ended | Six months ended | ||||
June 30, | June 30, | |||||
2026 | 2025 | 2026 | 2025 | |||
Average Total Assets | $ 2,366,850 | $ 2,033,216 | $ 2,359,468 | $ 2,007,497 | ||
Average Loans (Includes Loans Held-for-Sale) | 1,572,564 | 1,263,027 | 1,542,199 | 1,251,192 | ||
Average Investment Securities | 510,084 | 505,473 | 506,837 | 498,868 | ||
Average Short-term Investments and CDs1 | 152,375 | 155,878 | 179,132 | 148,287 | ||
Average Earning Assets | 2,235,023 | 1,924,378 | 2,228,168 | 1,898,347 | ||
Average Deposits | 2,018,940 | 1,737,259 | 1,998,681 | 1,703,526 | ||
Average Other Borrowings | 116,026 | 125,197 | 126,407 | 135,414 | ||
Average Shareholders' Equity | 223,611 | 152,097 | 219,614 | 149,432 | ||
Asset Quality: | As of | |||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||
2026 | 2026 | 2025 | 2025 | 2025 | ||
Loan Risk Rating by Category (End of Period) | ||||||
Special Mention | $ 5,205 | $ 5,713 | $ 5,186 | $ 2,948 | $ 2,506 | |
Substandard | 5,869 | 4,009 | 1,306 | 1,314 | 1,323 | |
Doubtful | - | - | - | - | - | |
Pass | 1,567,218 | 1,539,421 | 1,304,527 | 1,275,048 | 1,256,226 | |
Total Loans | $ 1,578,292 | $ 1,549,143 | $ 1,311,019 | $ 1,279,310 | $ 1,260,055 | |
Nonperforming Assets | ||||||
Non-accrual Loans | $ 300 | $ 311 | $ 202 | $ 205 | $ 210 | |
Other Real Estate Owned and Repossessed Assets | 168 | 168 | 168 | 194 | 194 | |
Accruing Loans Past Due 90 Days or More | 419 | 374 | 2 | 482 | 66 | |
Total Nonperforming Assets | $ 887 | $ 853 | $ 372 | $ 881 | $ 470 | |
Three months ended | Six months ended | |||||
June 30, | June 30, | |||||
2026 | 2025 | 2026 | 2025 | |||
Loans Charged-off | $ 4 | $ 3 | $ 6 | $ 3 | ||
Overdrafts Charged-off | 26 | 19 | 39 | 28 | ||
Loan Recoveries | (7) | (8) | (13) | (22) | ||
Overdraft Recoveries | (2) | (4) | (6) | (10) | ||
Net Charge-offs (Recoveries) | $ 21 | $ 10 | $ 26 | $ (1) | ||
Net Charge-offs / (Recoveries) to Average Loans2 | 0.01 % | 0.00 % | 0.00 % | (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 | Three months ended | Six months ended | |||||||
June 30, | March 31, | June 30, | |||||||
2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||
Interest income | $ 29,175 | $ 24,173 | $ 28,039 | $ 23,082 | $ 57,214 | $ 47,255 | |||
Interest expense | 9,674 | 8,849 | 9,670 | 8,692 | 19,344 | 17,541 | |||
Net interest income | 19,501 | 15,324 | 18,369 | 14,390 | 37,870 | 29,714 | |||
Provision for (release of) credit losses | 126 | (237) | 193 | 437 | 319 | 200 | |||
Net interest income after provision for (release of) credit losses | 19,375 | 15,561 | 18,176 | 13,953 | 37,551 | 29,514 | |||
Non-interest income | |||||||||
Deposit service charges | 213 | 224 | 223 | 221 | 436 | 445 | |||
Mortgage banking income | 1,070 | 879 | 681 | 759 | 1,751 | 1,638 | |||
Investment advisory fees and non-deposit commissions | 2,286 | 1,751 | 2,271 | 1,806 | 4,557 | 3,557 | |||
Government guaranteed lending income | 704 | - | 400 | - | 1,104 | - | |||
Gain on sale of other assets | - | 127 | - | - | - | 127 | |||
Other non-recurring income | 80 | - | - | - | 80 | - | |||
Other | 1,284 | 1,225 | 1,215 | 1,196 | 2,499 | 2,421 | |||
Total non-interest income | 5,637 | 4,206 | 4,790 | 3,982 | 10,427 | 8,188 | |||
Non-interest expense | |||||||||
Salaries and employee benefits | 9,514 | 8,060 | 9,492 | 7,657 | 19,006 | 15,717 | |||
Occupancy | 893 | 772 | 817 | 777 | 1,710 | 1,549 | |||
Equipment | 406 | 390 | 379 | 390 | 785 | 780 | |||
Marketing and public relations | 289 | 208 | 560 | 514 | 849 | 722 | |||
FDIC assessment | 294 | 274 | 272 | 300 | 566 | 574 | |||
Other real estate expense, net | 3 | 110 | 4 | 12 | 7 | 122 | |||
Amortization of intangibles | 101 | 40 | 96 | 39 | 197 | 79 | |||
Merger expenses | 503 | 234 | 1,581 | - | 2,084 | 234 | |||
Other | 3,270 | 2,995 | 3,830 | 3,065 | 7,100 | 6,060 | |||
Total non-interest expense | 15,273 | 13,083 | 17,031 | 12,754 | 32,304 | 25,837 | |||
Income before taxes | 9,739 | 6,684 | 5,935 | 5,181 | 15,674 | 11,865 | |||
Income tax expense | 2,144 | 1,498 | 437 | 1,184 | 2,581 | 2,682 | |||
Net income | $ 7,595 | $ 5,186 | $ 5,498 | $ 3,997 | $ 13,093 | $ 9,183 | |||
Per share data | |||||||||
Net income, basic | $ 0.81 | $ 0.68 | $ 0.60 | $ 0.52 | $ 1.41 | $ 1.20 | |||
Net income, diluted | $ 0.80 | $ 0.67 | $ 0.59 | $ 0.51 | $ 1.39 | $ 1.18 | |||
Average number of shares outstanding - basic | 9,366,415 | 7,663,964 | 9,215,205 | 7,647,537 | 9,291,228 | 7,665,796 | |||
Average number of shares outstanding - diluted | 9,504,285 | 7,786,757 | 9,344,816 | 7,767,978 | 9,421,205 | 7,775,231 | |||
Shares outstanding period end | 9,399,731 | 7,685,754 | 9,397,960 | 7,681,601 | 9,399,731 | 7,685,754 | |||
Return on average assets | 1.29 % | 1.02 % | 0.95 % | 0.82 % | 1.12 % | 0.92 % | |||
Return on average common equity | 13.62 % | 13.68 % | 10.34 % | 11.05 % | 12.02 % | 12.39 % | |||
Return on average tangible common equity (non-GAAP) | 15.91 % | 15.18 % | 12.06 % | 12.31 % | 14.03 % | 13.78 % | |||
Net interest margin (non taxable equivalent) | 3.50 % | 3.19 % | 3.35 % | 3.12 % | 3.43 % | 3.16 % | |||
Net interest margin (taxable equivalent) | 3.51 % | 3.21 % | 3.37 % | 3.13 % | 3.44 % | 3.17 % | |||
Efficiency ratio1 | 58.79 % | 66.04 % | 66.46 % | 69.23 % | 62.48 % | 67.59 % | |||
1 Calculated by dividing non-interest expense less merger expenses by net interest income on tax equivalent basis and non-interest income, excluding gain on sale of other assets and 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 June 30, 2026 | Three months ended June 30, 2025 | ||||||
Average | Interest | Yield/ | Average | Interest | Yield/ | ||
Balance | Earned/Paid | Rate | Balance | Earned/Paid | Rate | ||
Assets | |||||||
Earning assets | |||||||
Loans | $ 1,572,564 | $ 23,594 | 6.02 % | $ 1,263,027 | $ 18,174 | 5.77 % | |
Non-taxable securities | 43,492 | 337 | 3.11 % | 46,160 | 344 | 2.99 % | |
Taxable securities | 466,592 | 3,901 | 3.35 % | 459,313 | 3,976 | 3.47 % | |
Int bearing deposits in other banks | 152,253 | 1,342 | 3.54 % | 155,860 | 1,679 | 4.32 % | |
Fed funds sold | 122 | 1 | 3.29 % | 18 | - | 0.00 % | |
Total earning assets | 2,235,023 | 29,175 | 5.24 % | 1,924,378 | 24,173 | 5.04 % | |
Cash and due from banks | 28,046 | 25,103 | |||||
Premises and equipment | 29,679 | 29,732 | |||||
Goodwill and other intangibles | 32,134 | 15,024 | |||||
Other assets | 60,384 | 52,595 | |||||
Allowance for credit losses - investments | (16) | (24) | |||||
Allowance for credit losses - loans | (18,400) | (13,592) | |||||
Total assets | $ 2,366,850 | $ 2,033,216 | |||||
Liabilities | |||||||
Interest-bearing liabilities | |||||||
Interest-bearing transaction accounts | $ 543,720 | $ 2,364 | 1.74 % | $ 347,536 | $ 1,064 | 1.23 % | |
Money market accounts | 487,135 | 3,520 | 2.90 % | 460,865 | 3,494 | 3.04 % | |
Savings deposits | 108,158 | 49 | 0.18 % | 110,193 | 73 | 0.27 % | |
Time deposits | 350,813 | 2,929 | 3.35 % | 343,998 | 3,268 | 3.81 % | |
Fed funds purchased | 1 | - | 0.00 % | - | - | NA | |
Securities sold under agreements to repurchase | 101,061 | 566 | 2.25 % | 110,233 | 681 | 2.48 % | |
FHLB Advances | - | - | NA | - | - | NA | |
Other long-term debt | 14,964 | 246 | 6.59 % | 14,964 | 269 | 7.21 % | |
Total interest-bearing liabilities | 1,605,852 | 9,674 | 2.42 % | 1,387,789 | 8,849 | 2.56 % | |
Demand deposits | 529,114 | 474,667 | |||||
Allowance for credit losses - unfunded commitments | 653 | 455 | |||||
Other liabilities | 7,620 | 18,208 | |||||
Shareholders' equity | 223,611 | 152,097 | |||||
Total liabilities and shareholders' equity | $ 2,366,850 | $ 2,033,216 | |||||
Cost of deposits, including demand deposits | 1.76 % | 1.82 % | |||||
Cost of funds, including demand deposits | 1.82 % | 1.91 % | |||||
Net interest spread | 2.82 % | 2.48 % | |||||
Net interest income/margin | $ 19,501 | 3.50 % | $ 15,324 | 3.19 % | |||
Net interest income/margin (tax equivalent) | $ 19,568 | 3.51 % | $ 15,377 | 3.21 % | |||
FIRST COMMUNITY CORPORATION | ||||||||
Yields on Average Earning Assets and | ||||||||
Rates on Average Interest-Bearing Liabilities | ||||||||
(Dollars in thousands) | ||||||||
Six months ended June 30, 2026 | Six months ended June 30, 2025 | |||||||
Average | Interest | Yield/ | Average | Interest | Yield/ | |||
Balance | Earned/Paid | Rate | Balance | Earned/Paid | Rate | |||
Assets | ||||||||
Earning assets | ||||||||
Loans | $ 1,542,199 | $ 45,723 | 5.98 % | $ 1,251,192 | $ 35,618 | 5.74 % | ||
Non-taxable securities | 43,238 | 661 | 3.08 % | 46,571 | 687 | 2.97 % | ||
Taxable securities | 463,599 | 7,701 | 3.35 % | 452,297 | 7,783 | 3.47 % | ||
Int bearing deposits in other banks | 178,965 | 3,127 | 3.52 % | 148,247 | 3,166 | 4.31 % | ||
Fed funds sold | 167 | 2 | 2.42 % | 40 | 1 | 5.04 % | ||
Total earning assets | 2,228,168 | 57,214 | 5.18 % | 1,898,347 | 47,255 | 5.02 % | ||
Cash and due from banks | 28,219 | 24,868 | ||||||
Premises and equipment | 29,781 | 29,802 | ||||||
Goodwill and other intangibles | 31,399 | 15,043 | ||||||
Other assets | 59,916 | 52,866 | ||||||
Allowance for credit losses - investments | (17) | (23) | ||||||
Allowance for credit losses - loans | (17,998) | (13,406) | ||||||
Total assets | $ 2,359,468 | $ 2,007,497 | ||||||
Liabilities | ||||||||
Interest-bearing liabilities | ||||||||
Interest-bearing transaction accounts | $ 529,513 | $ 4,590 | 1.75 % | $ 339,760 | $ 2,029 | 1.20 % | ||
Money market accounts | 490,363 | 7,071 | 2.91 % | 450,630 | 6,813 | 3.05 % | ||
Savings deposits | 106,886 | 96 | 0.18 % | 111,624 | 153 | 0.28 % | ||
Time deposits | 349,847 | 5,866 | 3.38 % | 338,835 | 6,514 | 3.88 % | ||
Fed funds purchased | - | - | NA | 1 | - | 0.00 % | ||
Securities sold under agreements to repurchase | 111,443 | 1,230 | 2.23 % | 120,449 | 1,494 | 2.50 % | ||
FHLB Advances | - | - | NA | - | - | NA | ||
Other long-term debt | 14,964 | 491 | 6.62 % | 14,964 | 538 | 7.25 % | ||
Total interest-bearing liabilities | 1,603,016 | 19,344 | 2.43 % | 1,376,263 | 17,541 | 2.57 % | ||
Demand deposits | 522,072 | 462,677 | ||||||
Allowance for credit losses - unfunded commitments | 662 | 467 | ||||||
Other liabilities | 14,104 | 18,658 | ||||||
Shareholders' equity | 219,614 | 149,432 | ||||||
Total liabilities and shareholders' equity | $ 2,359,468 | $ 2,007,497 | ||||||
Cost of deposits, including demand deposits | 1.78 % | 1.84 % | ||||||
Cost of funds, including demand deposits | 1.84 % | 1.92 % | ||||||
Net interest spread | 2.75 % | 2.45 % | ||||||
Net interest income/margin | $ 37,870 | 3.43 % | $ 29,714 | 3.16 % | ||||
Net interest income/margin (tax equivalent) | $ 38,024 | 3.44 % | $ 29,818 | 3.17 % | ||||
The tables below provide a reconciliation of non‑GAAP measures to GAAP for the periods indicated:
June 30, |
March 31, | December 31, | September 30, | June 30, | |||||||||||||
Tangible book value per common share | 2026 | 2026 | 2025 | 2025 | 2025 | ||||||||||||
Tangible common equity per common share (non‑GAAP) | $ | 20.84 | $ | 20.07 | $ | 19.84 | $ | 19.06 | $ | 18.28 | |||||||
Effect to adjust for intangible assets | 3.41 | 3.43 | 1.94 | 1.95 | 1.95 | ||||||||||||
Book value per common share (GAAP) | $ | 24.25 | $ | 23.50 | $ | 21.78 | $ | 21.01 | $ | 20.23 | |||||||
Tangible common shareholders' equity to tangible assets | |||||||||||||||||
Tangible common equity to tangible assets (non‑GAAP) | 8.37 | % | 8.00 | % | 7.47 | % | 7.15 | % | 6.92 | % | |||||||
Effect to adjust for intangible assets | 1.24 | % | 1.23 | % | 0.67 | % | 0.67 | % | 0.68 | % | |||||||
Common equity to assets (GAAP) | 9.61 | % | 9.23 | % | 8.14 | % | 7.82 | % | 7.60 | % | |||||||
Return on average tangible common equity | Three months ended June 30, | Three months ended | Six months ended June 30, | |||||||||
2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |||||||
Return on average tangible common equity (non-GAAP) |
15.91 |
% | 15.18 | % | 12.06 | % | 12.31 | % | 14.03 | % | 13.78 | % |
Effect to adjust for intangible assets |
(2.29) | % |
(1.50) | % | (1.72) | % | (1.26) | % | (2.01) | % | (1.39) | % |
Return on average common equity (GAAP) | 13.62 |
% |
13.68 | % | 10.34 | % | 11.05 | % | 12.02 | % | 12.39 | % |
Three months ended | Six months ended | |||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||
Pre-tax, pre-provision earnings | 2026 | 2026 | 2025 | 2026 | 2025 | |||||||
Pre-tax, pre-provision earnings (non‑GAAP) | $ | 9,865 | $ | 6,128 | $ | 6,447 | $ | 15,993 | $ | 12,065 | ||
Effect to adjust for pre-tax, pre-provision earnings | (2,270) | (630) | (1,261) | (2,900) | (2,882) | |||||||
Net Income (GAAP) | $ | 7,595 | $ | 5,498 | $ | 5,186 | $ | 13,093 | $ | 9,183 | ||
Three months ended | Six months ended | |||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||
Net income excluding the after-tax effect of merger expenses |
2026 | 2026 | 2025 | 2026 | 2025 | |||||||
Net income excluding the after-tax effect of merger | $ | 7,979 | $ | 6,754 | $ | 5,365 | $ | 14,733 | $ | 9,362 | ||
Effect to adjust for the after-tax effect of merger expenses | (384) | (1,256) | (179) | (1,640) | (179) | |||||||
Net Income (GAAP) | $ | 7,595 | $ | 5,498 | $ | 5,186 | $ | 13,093 | $ | 9,183 | ||
Three months ended | Six months ended | |||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||
Diluted earnings per common share excluding the after-tax effect of merger expenses |
2026 | 2026 | 2025 | 2026 | 2025 | |||||||
Diluted earnings per common share excluding the after-tax | $ | 0.84 | $ | 0.72 | $ | 0.69 | $ | 1.56 | $ | 1.20 | ||
Effect to adjust for the after-tax effect of merger expenses | (0.04) | (0.13) | (0.02) | (0.17) | (0.02) | |||||||
Diluted earnings per common share (GAAP) | $ | 0.80 | $ | 0.59 | $ | 0.67 | $ | 1.39 | $ | 1.18 | ||
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 at0% . 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 at0% . 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