Executive Summary

Q4 2024 net income was $4.232M and diluted EPS was $0.55, up both year-over-year (vs. $3.297M and $0.43) and sequentially (vs. $3.861M and $0.50); net interest margin expanded to 3.00%, marking a third consecutive quarter of NIM improvement .
Deposits rose to $1.676B (+$31.8M QoQ) with improved mix: “pure deposits” up $26.0M QoQ and brokered CDs reduced to $10.4M; cost of deposits fell 12 bps QoQ to 1.91% and cost of funds fell 16 bps to 2.05% .
Wholesale funding was eliminated (FHLB advances cut from $50.0M to $0), creating a $229K loss on early extinguishment but increasing flexibility; total remaining credit availability exceeds $573.1M vs. $437.1M in uninsured deposits (excluding collateralized) .
Operating momentum in fee lines: mortgage banking income ($709K) and investment advisory revenue ($1.720M) improved; AUM reached $926.0M at year-end, up from $901.6M in Q3 and $755.4M in 2023 .
Asset quality remained pristine (NPAs 0.04%, past due 0.05%); the board maintained the $0.15 dividend (92nd consecutive quarter), a steady capital return backdrop and potential catalyst alongside an authorized $7.1M buyback (no repurchases yet) .

What Went Well and What Went Wrong

What Went Well

Net interest margin expanded to 3.00% (2.96% in Q3) and reached 3.05% for December, supported by deposit mix improvements and lower funding costs; management highlighted “positive momentum entering the first quarter of 2025” .
Deposits mix improved materially: pure deposits up $26.0M, brokered CDs down to $10.4M, and non-interest-bearing deposits up $21.3M to $462.7M (27.6% of total), contributing to lower cost of deposits (-12 bps QoQ) and cost of funds (-16 bps QoQ) .
Fee businesses strengthened: mortgage banking income rose to $709K with gain-on-sale margin of 2.94%, and investment advisory revenue reached $1.720M; AUM grew to $926.0M, evidencing both market appreciation and net inflows .

What Went Wrong

Loan yield compressed to 5.65% (from 5.73% in Q3), driven by the impact of cumulative 100 bps Federal Reserve rate decreases starting late September 2024 on floating-rate loans and the swap; swap benefit also moderated to $414K in Q4 vs. $681K in Q3 .
AOCL increased to $(25.459)M from $(23.223)M in Q3 due to higher market interest rates, pressuring tangible book value despite sequential TBV improvement to $16.93 per share .
A $229K loss on early extinguishment of FHLB debt weighed on non-interest income; while strategically beneficial (wholesale funding reduction to zero), it was a headwind to the quarter’s reported fee income .

Financial Results

Quarter-over-Quarter Comparison

Metric	Q2 2024	Q3 2024	Q4 2024
Net Income ($USD Millions)	$3.265	$3.861	$4.232
Diluted EPS ($)	$0.42	$0.50	$0.55
Net Interest Income ($USD Millions)	$12.694	$13.412	$13.857
Total Non-Interest Income ($USD Millions)	$3.642	$3.570	$3.608
NIM (Taxable Equivalent, %)	2.93%	2.96%	3.00%
Efficiency Ratio (%)	72.75%	70.48%	66.67%
ROA (%)	0.71%	0.80%	0.86%
ROE (%)	9.82%	11.04%	11.71%

Year-over-Year (Q4)

Metric	Q4 2023	Q4 2024
Net Income ($USD Millions)	$3.297	$4.232
Diluted EPS ($)	$0.43	$0.55
Net Interest Income ($USD Millions)	$12.295	$13.857
Total Non-Interest Income ($USD Millions)	$2.931	$3.608
NIM (Taxable Equivalent, %)	2.89%	3.00%
Efficiency Ratio (%)	69.92%	66.67%
ROA (%)	0.72%	0.86%
ROE (%)	10.48%	11.71%

Segment and Fee Line Breakdown

Metric	Q2 2024	Q3 2024	Q4 2024
Mortgage Banking Income ($USD Thousands)	$659	$575	$709
Gain-on-Sale Margin (%)	2.89%	2.92%	2.94%
Investment Advisory Fees ($USD Thousands)	$1,508	$1,595	$1,720
AUM (Period-End, $USD Millions)	$865.6	$901.6	$926.0
Secondary Market Loan Volume ($USD Millions)	$22.7	$19.5	$24.04

KPIs and Balance Sheet

KPI	Q2 2024	Q3 2024	Q4 2024
Loans (Period-End, $USD Millions)	$1,189.189	$1,196.659	$1,220.542
Deposits (Period-End, $USD Millions)	$1,604.528	$1,644.064	$1,675.901
Pure Deposits (ex-CDs, $USD Millions)	$1,319.0	$1,350.0	$1,376.0
Non-Interest-Bearing Deposits ($USD Millions)	$460.4	$441.4	$462.7
Cost of Deposits (%)	1.98%	2.03%	1.91%
Cost of Funds (%)	2.17%	2.21%	2.05%
Loan Yield (%)	5.60%	5.73%	5.65%
NPAs (% of Assets)	0.04%	0.04%	0.04%
Past Due Loans (% of Loans)	0.07%	0.11%	0.05%
Brokered CDs ($USD Millions)	$42.9	$22.4	$10.4
FHLB Advances ($USD Millions)	$50.0	$50.0	$0.0
AOCL ($USD Millions)	$(27.288)	$(23.223)	$(25.459)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q4 2024	$0.15 (Q3 2024)	$0.15	Maintained
Share Repurchase Authorization	Through May 13, 2025	Up to $7.1M; no repurchases	Up to $7.1M; no repurchases	Maintained
NIM Outlook	Q1 2025	Not previously stated	Management noted “positive momentum entering the first quarter of 2025”	Qualitative positive

Note: No explicit numeric revenue, margin, OpEx, OI&E, or tax rate guidance ranges were provided in Q4 materials .

Earnings Call Themes & Trends

(Earnings call transcript was not available; themes reflect press releases and 8‑K.)

Topic	Previous Mentions (Q2, Q3)	Current Period (Q4)	Trend
Deposit franchise and mix	Q2: growth in pure and non-interest-bearing deposits; brokered CDs reduced . Q3: continued pure deposit growth; brokered CDs down; commentary on franchise strength .	Pure deposits +$26.0M QoQ; brokered CDs down to $10.4M; cost of deposits/funds reduced; “A strength of our bank has been and continues to be the value of our deposit franchise” .	Improving mix and lower funding cost.
NIM trajectory	NIM up 14 bps QoQ to 2.93% (inflection cited) .	NIM up to 2.96% .	NIM reached 3.00% (3.05% in Dec); “positive momentum” into Q1 2025 .
Interest rate swap impact	$668K in Q2; raised loan yield/NIM by 24/16 bps .	$681K in Q3; +23/15 bps .	$414K in Q4; +14/9 bps; lower impact amid Fed rate decreases .
Mortgage banking performance	Q2 highest production since 2020; gain-on-sale 2.89% .	Production $38.1M; gain-on-sale 2.92% .	Production $41.88M; gain-on-sale 2.94%; encouraged despite rate/inventory headwinds .
Investment advisory	AUM record $865.6M; fees $1.508M .	AUM $901.6M; fees $1.595M .	AUM $926.0M; fees $1.720M .
Capital/liquidity	FHLB advances $50M; total remaining credit avail. >$509M .	FHLB advances $50M; credit avail. >$505M .	FHLB advances reduced to $0; credit avail. >$573.1M vs. uninsured deposits $437.1M .
CRE exposure/Office	Low office concentration; 4 large office loans $10.6M, WA LTV 34% .	Similar disclosure; $10.7M, WA LTV 33% .	4 office loans $13.4M, WA LTV 48% .

Management Commentary

“The entire board is pleased that our performance enables the company to continue our cash dividend uninterrupted for 92 consecutive quarters.” — Mike Crapps, President & CEO, First Community Corporation .
“This share repurchase plan, along with other measures taken, provides us optionality in managing capital going forward.” — Mike Crapps .
“Loan growth was strong in 2024; a combination of loan production and advances of unfunded commercial loans available for draws even with the headwinds of higher payoffs and paydowns during the year.” — Ted Nissen, President & CEO, First Community Bank .
“Of the $31.8 million in total deposit growth in the fourth quarter of 2024, $26.0 million of that was in pure deposits…we were able to reduce both cost of funds and cost of deposits due to this improved mix… and the current interest rate environment.” — Ted Nissen .
Mortgage commentary: “While we are still experiencing the headwinds of a higher interest rate environment and low housing inventory, we are encouraged by recent trends.” — Ted Nissen .

Q&A Highlights

Earnings call transcript was not available in the document set; Q&A themes and any guidance clarifications could not be assessed [ListDocuments: earnings-call-transcript not found].

Estimates Context

Wall Street consensus estimates (S&P Global Capital IQ) for Q4 2024 EPS and revenue were unavailable due to service limitations at the time of request; therefore, we cannot quantify beats/misses versus consensus for this quarter. Values would normally be retrieved from S&P Global, but were not accessible in this session.

Key Takeaways for Investors

NIM expansion and lower deposit/funding costs are the primary earnings drivers; continued deposit mix improvement and lower wholesale funding should support margin resilience near term .
Wholesale funding elimination (FHLB to $0) increases balance sheet flexibility despite a one-time extinguishment loss; ample contingent liquidity (>$573M) versus uninsured deposits ($437M, ex-collateralized) reduces funding risk .
Fee diversification via mortgage banking and advisory services is strengthening; AUM growth and gain-on-sale margin progression add supportive non-interest income trends .
Asset quality remains a core strength (NPAs 0.04%, very low past dues, modest net recoveries), limiting credit cost volatility and supporting valuation .
AOCL increased on rate moves; fair value sensitivity remains a watch item even as TBV per share continues to improve sequentially — useful for mid-term capital considerations .
Dividend continuity ($0.15) and buyback authorization (no repurchases yet) provide optional capital return levers; execution timing could be a stock catalyst .
Near-term narrative hinges on rate path: lower floating rates compressed loan yield and swap contribution in Q4; further rate dynamics will affect spread, NIM, and fee lines via mortgage activity .

Additional references:

Executive leadership update (Donley named EVP & Chief Operations & Risk Officer) may aid operational execution through 2025 .
Earnings release calendar notice for 2025 was issued in December (admin relevance) .

FIRST COMMUNITY CORP /SC/ (FCCO)·Q4 2024 Earnings Summary