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FC

FIRST COMMUNITY CORP /SC/ (FCCO)·Q1 2025 Earnings Summary

Executive Summary

  • FCCO delivered solid Q1 with diluted EPS of $0.51, up 50% YoY, and net income of $3.997M; net interest margin (TE) expanded 13 bps QoQ to 3.13% on lower funding costs and higher loan yields .
  • Results beat Wall Street: EPS $0.51 vs consensus $0.45*; “revenue” $17.94M vs $17.39M*; beats were driven by NIM expansion, strong core deposit growth, and higher non-interest income (mortgage and advisory) .
  • Balance sheet momentum continued: customer deposits +$49.8M QoQ (12.1% annualized), pure deposits +$38.6M, non-interest-bearing mix 27.2%; loans +$31.4M QoQ (10.4% annualized). Cost of deposits fell 6 bps QoQ to 1.85% and cost of funds fell 11 bps to 1.94% .
  • Credit pristine: NPAs 0.03% of assets, past dues 0.14%, net recoveries of $11K; tangible book rose to $17.56 (from $16.93 in Q4), and regulatory capital ratios remain comfortably above “well-capitalized” levels .

Note: Asterisks (*) indicate S&P Global consensus/actual “Revenue” and EPS values. Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Margin and funding: NIM (TE) rose to 3.13% (from 3.00% in Q4) as loan yields improved to 5.71% and cost of funds fell to 1.94%, supported by a richer deposit mix (pure deposit growth) .
  • Core franchise strength: Deposits +$49.8M QoQ (12.1% annualized), with non-interest-bearing deposits up to $468.9M (27.2% of deposits). Management emphasized the “value of our deposit franchise” and relationship-driven growth in pure deposits .
  • Fee engines improved: Non-interest income rose to $3.982M (from $3.608M in Q4), with mortgage fee revenue $759K on $43.86M production (gain-on-sale 2.93%) and advisory fees up to $1.806M; AUM $892.8M .

Selected quotes:

  • “Loan growth was strong…production up 93% over the same period in 2024 and 62% over the fourth quarter of 2024…combined for a strong quarter in net loan growth.” – President & CEO Ted Nissen .
  • “A strength of our bank has been and continues to be the value of our deposit franchise.” – Ted Nissen .
  • “Our financial planning and investment advisory line of business continues to do well with net new asset growth from existing and new clients.” – Ted Nissen .

What Went Wrong

  • Expense uptick and efficiency: Non-interest expense rose $928K QoQ to $12.754M on payroll taxes (seasonal), higher commissions, planned marketing, and higher professional fees; efficiency ratio worsened to 69.23% (from 66.67%) .
  • Mortgage margin pressure persists: Gain-on-sale margin in mortgages was 2.93% (down vs 3.20% in Q1’24) despite production growth; management still cites higher rates and low inventory as headwinds .
  • AUM down sequentially: Advisory AUM decreased to $892.8M from $926.0M at year-end amid market volatility, partially offset by net new assets .

Financial Results

Headline vs Consensus (Q1 2025)

MetricQ1 2025 ActualQ1 2025 ConsensusSurprise
Diluted EPS ($)$0.51 $0.45*+$0.06 / +13.0%*
Revenue ($M)$17.94*$17.39*+$0.54 / +3.1%*

Note: Asterisks (*) indicate S&P Global values. Values retrieved from S&P Global.

Quarterly Metrics Trend

MetricQ3 2024Q4 2024Q1 2025
Net Income ($M)$3.861 $4.232 $3.997
Diluted EPS ($)$0.50 $0.55 $0.51
Net Interest Income ($M)$13.412 $13.857 $14.390
Non-Interest Income ($M)$3.570 $3.608 $3.982
NIM (Tax-Equivalent) (%)2.96% 3.00% 3.13%
Efficiency Ratio (%)70.48% 66.67% 69.23%
Loans, EOP ($B)$1.197 $1.221 $1.252
Deposits, EOP ($B)$1.644 $1.676 $1.726
Cost of Deposits (%)2.03% 1.91% 1.85%
Cost of Funds (%)2.21% 2.05% 1.94%
Non-Interest-Bearing Deposits (% of total)26.8% 27.6% 27.2%

YoY Comparison (Q1 2025 vs Q1 2024)

MetricQ1 2024Q1 2025YoY Change
Net Income ($M)$2.597 $3.997 +$1.400 (+53.9%)
Diluted EPS ($)$0.34 $0.51 +$0.17 (+50.0%)
Net Interest Income ($M)$12.077 $14.390 +$2.313 (+19.1%)
Non-Interest Income ($M)$3.184 $3.982 +$0.798 (+25.1%)
NIM (Tax-Equivalent) (%)2.79% 3.13% +34 bps
Efficiency Ratio (%)77.15% 69.23% -792 bps
Loans, EOP ($B)$1.157 $1.252 +$0.095 (+8.2%)
Deposits, EOP ($B)$1.578 $1.726 +$0.148 (+9.4%)

Non-Interest Revenue Breakdown

Metric ($M)Q1 2024Q4 2024Q1 2025
Deposit Service Charges$0.259 $0.230 $0.221
Mortgage Banking Income$0.425 $0.709 $0.759
Investment Advisory Fees & Non-Deposit Commissions$1.358 $1.720 $1.806
Other$1.142 $1.178 $1.196
Total Non-Interest Income$3.184 $3.608 $3.982

KPI Dashboard

KPIQ4 2024Q1 2025Commentary
Loan Yield (%)5.65% 5.71% Higher pricing on new/renewed loans; swap adds ~10 bps to loan yields .
NIM (TE) (%)3.00% 3.13% Expansion from lower funding costs and higher loan yields; swap adds ~6 bps to NIM .
Cost of Deposits (%)1.91% 1.85% Improved deposit mix (pure deposits +$38.6M) .
Cost of Funds (%)2.05% 1.94% Broad-based funding improvement .
Non-Interest-Bearing Deposits (% total)27.6% 27.2% Healthy, granular franchise .
AUM ($M)926.0 892.8 Market volatility offset by net new assets .
Mortgage Production ($M)41.88 43.86 Gain-on-sale margin 2.94% → 2.93% .
Asset QualityNPAs 0.04%; past due 0.05% NPAs 0.03%; past due 0.14%; net recoveries $11K Credit metrics remain excellent.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per common shareQ1 2025$0.15 (Q4 2024 dividend) $0.15 (payable May 20, 2025) Maintained

Note: The company did not provide quantitative forward guidance for revenue, margins, OpEx, OI&E, or tax rate in Q1 2025 materials reviewed .

Earnings Call Themes & Trends

(Company did not publish an earnings call transcript in our document set for Q1 2025; themes derived from press releases.)

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
NIM and funding costsNIM expansion began; deposit beta/costs elevated but improving NIM to 3.13%, cost of deposits down 6 bps, cost of funds down 11 bps Improving
Deposit franchise and mixStrong pure deposit growth; declining brokered CDs Pure deposits +$38.6M; minimal brokered CDs ($10.4M) Strengthening
Loan growth and yieldsLoan growth moderated in Q3 on higher payoffs; rebound in Q4 Loans +$31.4M; yield up to 5.71% Reaccelerating
Interest rate swap impactSwap added 15 bps to NIM (Q3) and 9 bps in Q4 Swap adds ~6 bps to NIM; $288K to interest on loans Still positive, moderating
Non-interest income enginesMortgage and advisory recovering; AUM hit $926M in Q4 Mortgage fees $759K; advisory $1.806M; AUM $892.8M Solid, AUM softer QoQ
Credit quality/CRE officeExcellent metrics; limited large-office exposure Excellent metrics; office >50k sf only 4 loans, $10.8M, WAVG LTV 35% Stable

Management Commentary

  • “Loan growth was strong in the first quarter of 2025 with production up 93% over the same period in 2024 and 62% over the fourth quarter of 2024. This combined with lower payoffs and paydowns combined for a strong quarter in net loan growth.” – Ted Nissen, President & CEO .
  • “A strength of our bank has been and continues to be the value of our deposit franchise…we were able to reduce both cost of funds and cost of deposits due to this improved mix of deposit balances and the current interest rate environment.” – Ted Nissen .
  • “Our mortgage line of business is still experiencing the headwinds of a higher interest rate environment and low housing inventory; however, we are encouraged by recent trends including an increase in production year-over-year of 19.7%. Our financial planning and investment advisory line of business continues to do well with net new asset growth…” – Ted Nissen .
  • “The entire board is pleased that our performance enables the company to continue its cash dividend for the 93rd consecutive quarter.” – Mike Crapps, President & CEO (corporate) .

Q&A Highlights

No Q1 2025 earnings call transcript was available in our document set; therefore, no Q&A themes to summarize. Management tone in releases emphasized core deposit strength, prudent credit, and expense timing (seasonal payroll taxes, planned marketing, and higher professional fees) .

Estimates Context

  • EPS beat: $0.51 vs $0.45 consensus (+$0.06, +13.0%); Revenue beat: $17.94M vs $17.39M consensus (+$0.54M, +3.1%). Beats reflect NIM expansion, deposit mix improvement, and higher non-interest income .
  • Estimate implications: Continued funding cost tailwinds and strong loan growth may support upward EPS revisions if expense normalization materializes and fee momentum persists; watch for potential moderation in swap benefit as short rates evolve .

Note: Asterisks (*) indicate S&P Global values. Values retrieved from S&P Global.

Key Takeaways for Investors

  • Core earnings quality improved: NIM (TE) to 3.13% with both cost of funds and cost of deposits down sequentially; this is the key driver of the EPS beat .
  • Funding franchise advantage: Pure deposits led growth; non-interest-bearing mix remains robust (27.2%), limiting reliance on wholesale funding and supporting margin resilience .
  • Credit remains a differentiator: NPAs 0.03%, net recoveries, and limited large-office CRE exposure (only four loans, $10.8M, WAVG LTV 35%) reduce downside risk in a soft macro .
  • Fee engines are supportive: Mortgage production up and advisory fees growing; AUM softness appears market-driven and partially offset by net new assets .
  • Expense elevation appears transitory: Seasonal payroll taxes, planned marketing, and higher professional fees drove the QoQ increase; monitor for normalization in Q2 .
  • Capital and TBV trending up: TBV/share rose to $17.56; capital ratios comfortably above well-capitalized thresholds, enabling ongoing dividends ($0.15) and optionality .
  • Near-term setup: If funding costs continue to ease and loan yields improve (plus modest swap tailwind), consensus EPS likely biases upward; watch volume trends, fee durability, and operating expense discipline .

References:

  • Q1 2025 earnings press release and tables ; 8-K filing with detailed exhibits ; Prior quarters: Q4 2024 press release ; Q3 2024 press release .

S&P Global disclaimer: EPS and Revenue consensus/actual values marked with an asterisk (*) are retrieved from S&P Global.