Executive Summary

Record quarter: net income $5.19M and diluted EPS $0.67, with tax-equivalent NIM expanding 8 bps to 3.21% and efficiency ratio improving to 66.0% .
Beat vs Street: Q2 EPS $0.68* vs $0.56* consensus; revenue $19.77M* vs $18.56M* consensus; prior two quarters also beat modestly, underscoring estimate momentum (low coverage) [Values retrieved from S&P Global].
Balance sheet momentum: customer deposits +$28.3M QoQ to $1.754B with cost of deposits down to 1.82%; loans +$8.1M QoQ despite higher payoffs; NIB deposits 27.1% of total .
Capital actions and catalysts: dividend raised to $0.16 (94th consecutive quarter); $7.5M buyback authorization (no repurchases yet); definitive agreement to acquire Signature Bank of Georgia (SBA lending, Atlanta entry) with expected close early Q1 2026 .

What Went Well and What Went Wrong

What Went Well

Margin and revenue expansion: Net interest income rose to $15.32M QoQ; NIM (TE) to 3.21% driven by loan yield +6 bps and lower funding costs; interest-rate swap added ~6 bps to NIM and ~$284k to interest on loans in Q2 .
Scalable fee engines: Mortgage production hit a record $62.9M (gain-on-sale 2.74%) and advisory AUM crossed $1.01B, producing $0.88M and $1.75M of revenues, respectively .
Exceptional credit quality: NCOs of $10k, NPAs 0.02% of assets, ACL/loans 1.06%; past dues 0.02%; classified loans+OREO at 0.82% of risk-based capital .

What Went Wrong

Loan growth tempered by elevated payoffs/paydowns (+126% QoQ), reducing net loan growth to +$8.1M (2.6% annualized) despite strong production .
Non-interest expense +$0.33M QoQ to $13.08M, including $0.23M merger-related costs and higher variable compensation; OREO write-down lifted other real estate expense .
Advisory revenue down sequentially (-$0.06M) despite record AUM, reflecting mix/market dynamics; sweep balances fell QoQ on seasonality (though +75% YoY) .

Financial Results

Core Financials vs Prior Periods and Estimates

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions, S&P)	$17.23*	$17.94*	$19.77*
Diluted EPS (S&P)	$0.57*	$0.51*	$0.68*
Net Interest Income ($USD Millions)	$13.86	$14.39	$15.32
Non-Interest Income ($USD Millions)	$3.61	$3.98	$4.21
NIM (Tax-Equivalent, %)	3.00%	3.13%	3.21%
Efficiency Ratio (%)	66.67%	69.23%	66.04%
ROA (%)	0.86%	0.82%	1.02%
ROE (%)	11.71%	11.05%	13.68%
EPS Consensus vs Actual	$0.49* vs $0.57*	$0.45* vs $0.51*	$0.56* vs $0.68*

Note: Values with * are from S&P Global.

Segment/Line-of-Business Detail (Non-Interest Income)

Component ($USD Thousands)	Q4 2024	Q1 2025	Q2 2025
Deposit Service Charges	$230	$221	$224
Mortgage Banking Income	$709	$759	$879
Investment Advisory & Commissions	$1,720	$1,806	$1,751
Other (incl. non-recurring)	$1,949	$1,196	$1,352
Total Non-Interest Income	$3,608	$3,982	$4,206

Key KPIs and Balance Sheet Metrics

KPI	Q4 2024	Q1 2025	Q2 2025
Total Deposits ($USD Millions)	$1,675.9	$1,725.7	$1,754.0
Customer Deposit Growth (QoQ, $USD Millions)	+$31.8	+$49.8	+$28.3
Non-Interest Bearing Deposits (% of Total)	27.6%	27.2%	27.1%
Cost of Deposits (%)	1.91%	1.85%	1.82%
Cost of Funds (%)	2.05%	1.94%	1.91%
Loans ($USD Millions)	$1,220.5	$1,252.0	$1,260.1
Loan Yield (%)	5.65%	5.71%	5.77%
Mortgage Production ($USD Millions)	$41.88	$43.86	$62.90
Gain-on-Sale Margin (Secondary Market)	2.94%	2.93%	2.74%
Advisory AUM ($USD Billions)	$0.926	$0.893	$1.011
NPAs (% of Assets)	0.04%	0.03%	0.02%
ACL/Loans (%)	1.08%	1.09%	1.06%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cash Dividend per Share	Q2 2025	$0.15 (Q1 2025)	$0.16	Raised
Share Repurchase Authorization	Through May 2026	Prior plan $7.1M expiring May 13, 2025 (no repurchases)	New plan up to $7.5M through May 8, 2026 (no repurchases)	Increased authorization
Strategic Expansion	2026 Close	N/A	Signed definitive agreement to acquire Signature Bank of Georgia; expected close early Q1 2026	New strategic initiative
Quantitative Guidance	N/A	None provided	None provided	Maintained (no formal guidance)

Earnings Call Themes & Trends

No Q2 2025 earnings call transcript was available via our document tools; themes below reflect management commentary across earnings releases.

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Deposit franchise and funding costs	Cost of deposits fell 12 bps QoQ in Q4; further fell 6 bps in Q1; improved pure deposit mix	Costs fell to 1.82%; pure deposits +$23M; granularity emphasized; seasonal sweep decline but +75% YoY	Improving
Margin trajectory	TE NIM rose to 3.00% (Dec), 3.13% (Mar)	3.21% with swap contribution (~6 bps) and loan yield uplift	Improving
Mortgage demand	Production $41.9M (Q4) → $43.9M (Q1)	Record $62.9M; higher secondary and construction volumes	Accelerating
Advisory AUM/revenue	AUM $926M (Q4); revenue $1.72M	AUM fell to $893M; revenue $1.81M	Mixed
Credit quality	NPAs 0.04% (Q4); NCOs minimal	NPAs 0.03%; net recoveries including overdrafts $11k	Stable/Strong
Hedging strategy	Swap boosted loan yield/NIM in Q4	Swap added $284k to interest on loans; +6 bps NIM in Q2	Ongoing benefit
Strategic M&A	None	Definitive agreement to acquire Signature Bank of Georgia; adds SBA lending and Atlanta presence	Expansion

Management Commentary

“Our entire board is pleased that our performance enables the company to continue its cash dividend for the 94th consecutive quarter.” — Mike Crapps, President & CEO .
“Loan production continued strong in the second quarter, but was significantly offset by much higher loan payoffs during the quarter.” — Ted Nissen, President & CEO, First Community Bank .
“This expansion into a new market and the addition of a new line of business are two key initiatives that we have been diligently working towards.” — Mike Crapps on Signature Bank of Georgia acquisition .

Q&A Highlights

No Q2 2025 earnings call transcript was found in our document catalog; therefore, Q&A highlights and any call-specific guidance clarifications are unavailable based on primary documents.

Estimates Context

Q2 EPS $0.68* vs $0.56* consensus; revenue $19.77M* vs $18.56M* consensus; low analyst coverage (EPS estimates count: 2; revenue: 1) [Values retrieved from S&P Global].
Prior quarters also beat: Q1 EPS $0.51* vs $0.45*; Q4 EPS $0.57* vs $0.49*; revenue beats in Q1 and Q4 were modest [Values retrieved from S&P Global].
Key drivers of Q2 beat: NIM expansion (loan yield +6 bps, deposit cost -3 bps), swap uplift (~$284k loans, ~6 bps NIM), strong fee income (mortgage and advisory), provision release (-$237k), and exceptionally low credit costs .

Key Takeaways for Investors

Core earnings power is improving: sequential NIM expansion and operating efficiency gains should support near-term EPS trajectory; continued cost of funds moderation is a tailwind .
Fee diversification matters: record mortgage production and $1.01B AUM reduce reliance on spread income; watch gain-on-sale margins and advisory revenue mix .
Credit remains a differentiator: NPAs and NCOs near zero; ACL/loans eased to 1.06% due to improved macro forecasts, freeing earnings capacity .
Capital returns and optionality: dividend increased; buyback authorization in place though no activity yet; tangible book per share rose to $18.28 (GAAP BVPS $20.23) .
Strategic catalyst: Signature Bank of Georgia acquisition adds SBA lending and Atlanta presence; expected to be EPS accretive post-close (company projections), with TCE/TA uplift pro forma .
Trading implications: Near-term positive skew given repeated estimate beats, margin momentum, and dividend increase; monitor loan payoff cadence and seasonal sweep balances that can mute growth .
Medium-term thesis: Spread normalization plus scalable fee engines and disciplined credit underpin growth; successful M&A integration and SBA platform expansion are key execution milestones .

Additional sources:

Press release and 8-K earning materials: Q2 2025 results and detailed tables ; PRNewswire version .
Prior quarters: Q1 2025 8-K ; Q4 2024 8-K .
Acquisition announcement: Signature Bank of Georgia .
Coverage noting the beat: Nasdaq — “First Community (FCCO) Tops Q2 Earnings and Revenue Estimates” .

Estimates disclaimer: Values marked with * were retrieved from S&P Global.

FIRST COMMUNITY CORP /SC/ (FCCO)·Q2 2025 Earnings Summary