FIRST COMMUNITY CORP /SC/ (FCCO)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 delivered stable GAAP EPS of $0.67 (flat QoQ, +34% YoY) on net income of $5.192M; excluding merger costs, non-GAAP EPS rose to $0.72 (+4% QoQ, +44% YoY), marking the sixth straight quarter of net interest margin expansion to 3.27% .
• Operating momentum was broad-based: net interest income rose 4.4% QoQ to $15.994M and non-interest income increased 6.3% QoQ to $4.469M (incl. $188K non-recurring), while efficiency improved to 64.4% from 66.0% in Q2 .
• Balance sheet trends were healthy: loans +$19.3M (6.1% annualized), deposits +$17.1M (3.9% annualized), pure deposits +$24.9M with cost of deposits improving to 1.81% and cost of funds to 1.89% .
• Potential catalysts: active capital return (95th straight dividend at $0.16 per share; repurchase authorization up to $7.5M) and pending Signature Bank of Georgia acquisition (shareholder meeting set Nov 19; close targeted early Q1’26) .

What Went Well and What Went Wrong

• What Went Well

  • Sustained margin and earnings quality: TE NIM expanded 6 bps QoQ to 3.27% (sixth consecutive quarter), with loan yields up to 5.84% and net interest income +4.4% QoQ .
  • Deposit franchise strength: total deposits +$17.1M QoQ, “pure deposits” +$24.9M; management emphasized focus on relationship accounts over price-sensitive CDs: “A strength of our bank has been and continues to be the value of our deposit franchise” – Ted Nissen .
  • Fee engines performing: investment advisory revenue hit $1.862M (AUM record $1.103B), mortgage fees $934K with 2.91% gain-on-sale margin; total non-interest income +6.3% QoQ .

• What Went Wrong

  • Expense pressure from strategic activity and marketing: non-interest expense rose to $13.674M (+$591K QoQ), driven by +$341K merger-related costs and +$349K marketing spend .
  • Mixed mortgage production mix: total mortgage production fell QoQ ($51.6M vs $62.9M) with lower construction and ARM volumes, partly offset by stronger gain-on-sale margin .
  • Slight uptick in reported NPAs (to $0.881M) and 90+ day accruing ($0.482M), though overall credit remains very strong (NPAs 0.04%, past dues 0.07%) .

Financial Results

Headline P&L and Profitability (Actuals)

Q3 2025 vs Wall Street Consensus (S&P Global)

Values retrieved from S&P Global.
Note: Company-reported GAAP diluted EPS was $0.6668; S&P “actual” reflects standardized methodology; revenue definition may differ from company’s net interest income + non-interest income .

Segment/Line-of-Business Detail (Selected Fee Lines)

Key KPIs and Balance Sheet

Non-GAAP and other notes: Merger-related after-tax expense reduced Q3 diluted EPS by ~$0.056 per share; ex-merger diluted EPS $0.7231 vs GAAP $0.6668 .

Guidance Changes

Earnings Call Themes & Trends

Note: No Q3 2025 earnings call transcript was available in our document set as of this analysis; themes below are drawn from Q1–Q3 company releases/8-Ks .

Management Commentary

• “Our entire board is pleased that our performance enables the company to continue its cash dividend for the 95th consecutive quarter.” – Mike Crapps, President & CEO .
• “This approved share repurchase provides us with some flexibility in managing capital going forward.” – Mike Crapps .
• “A strength of our bank has been and continues to be the value of our deposit franchise… This shift toward pure deposits reflects a stronger focus on relationship-based accounts rather than more price-sensitive certificates of deposit.” – Ted Nissen, President & CEO of First Community Bank .
• On Atlanta expansion: “Signature’s deep local relationships… and specialized lending capabilities – especially in SBA – will significantly enhance our presence…” – Mike Crapps .

Q&A Highlights

No Q3 2025 earnings call transcript was available; no Q&A disclosures found in our document set [List: 0 earnings-call-transcript; 8-K references press release only] .

Estimates Context

• Q3 2025 EPS beat: EPS 0.706 vs 0.65 consensus; three estimates contributed to EPS consensus; revenue was slightly below the single estimate (19.499M vs 19.642M). Values retrieved from S&P Global.*
• Given EPS outperformance and stable margins, model updates may include slightly higher NIM trajectory and fee income mix (wealth, mortgage GOS), partially offset by modestly higher opex for marketing and M&A integration preparation .

Key Takeaways for Investors

• NIM expansion story intact with disciplined funding: TE NIM +6 bps QoQ to 3.27%, supported by swap strategy and deposit mix improvements, positioning for resilient spread income .
• Broad-based growth with credit strength: loans and deposits both grew QoQ, while NPAs and charge-offs remain exceptionally low, de-risking earnings quality .
• Fee diversification working: record AUM and steady mortgage GOS helped drive non-interest income higher QoQ and YoY .
• Capital return continues: $0.16 dividend maintained; repurchase authorization up to $7.5M offers optionality pending market conditions and merger close .
• M&A as a medium-term catalyst: Signature Bank of Georgia adds an SBA platform and Atlanta presence; management targets early Q1’26 close, with projected EPS accretion and capital accretion outlined at announcement .
• Watch items: elevated marketing and M&A expenses near term, mixed mortgage volumes vs Q2 peak, and continued execution on deposit mix/costs as rates evolve .

Appendix: Additional Data (Selected)

• Pre-tax, pre-provision earnings (non-GAAP): $6.789M (Q3’25) vs $6.447M (Q2’25) vs $4.991M (Q3’24) .
• Tangible book value per share increased to $19.06 from $18.28 in Q2 and $16.78 in Q3’24 .
• Regulatory capital (bank level) remains well above “well-capitalized”: Leverage 8.55%, Tier 1 13.10%, Total 14.15% (Q3’25) .

Sources: FCCO Q3 2025 8-K and press release; Q2 and Q1 2025 press releases; Signature Bank of Georgia acquisition release .
Estimates: S&P Global consensus and actuals for Q3 2025 EPS and revenue (values marked with asterisks above).*