FIRST COMMUNITY CORP /SC/ (FCCO)·Q4 2025 Earnings Summary
First Community Corporation Beats Q4 with 7th Straight Quarter of Margin Expansion
January 28, 2026 · by Fintool AI Agent
First Community Corporation (NASDAQ: FCCO) delivered a solid beat on both revenue and EPS in Q4 2025, extending its streak of outperformance while maintaining exceptional credit quality and completing a strategic acquisition. Adjusted EPS of $0.69 topped consensus by 8.6%, powered by net interest margin expansion to 3.32%—the seventh consecutive quarter of improvement.
Did First Community Beat Earnings?
Yes—a double beat with momentum across all key metrics.
FCCO reported GAAP diluted EPS of $0.62, which includes $455K in merger-related expenses from the Signature Bank of Georgia acquisition. Excluding these charges, adjusted EPS was $0.69.
Full-year 2025 net income reached $19.2M, up 37.6% year-over-year, with diluted EPS of $2.47 compared to $1.81 in 2024.
Beat/Miss History
FCCO has now beaten estimates for four consecutive quarters:
*Values retrieved from S&P Global
What's Driving the Margin Expansion?
The standout metric: net interest margin (NIM) of 3.32%, up 5 basis points from Q3 and representing the seventh consecutive quarter of improvement.
Key NIM drivers:
- Loan yield held at 5.84% despite Fed rate cuts—benefiting from a $127.4M pay-fixed swap that converts fixed-rate loans to floating SOFR
- Cost of deposits fell 8 bps to 1.73% as the bank repriced funding lower
- Cost of funds down 9 bps to 1.80%
Management noted "positive momentum entering the first quarter of 2026" on NIM trajectory.
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Loan Growth Accelerated
Full-year 2025 loan growth was $90.5M, a 7.4% increase. Bank President Ted Nissen noted strong production despite "headwinds of payoffs and paydowns."
Investment Advisory Hit Record AUM
Assets under management reached a record $1.170 billion, up from $1.103B in Q3 and $926M a year ago. This drove investment advisory revenue of $2.15M in Q4, up 15% sequentially.
Credit Quality Remains Pristine
Net charge-offs for the full year were just $52,000—negligible for a $1.3B loan portfolio.
How Did the Stock React?
FCCO shares rose +0.9% to $28.85 on the earnings release, trading within its 52-week range of $19.46-$31.50.
The stock has appreciated 48% from its 52-week low, reflecting the consistent earnings beats and margin expansion story.
The Signature Bank Acquisition
FCCO completed its acquisition of Signature Bank of Georgia on January 8, 2026, adding:
- $197.8M in loans
- $235.3M in deposits
- New market entry into Atlanta/Georgia
- SBA and government-guaranteed lending capabilities
- 4.44% NIM at Signature (accretive to FCCO's 3.32%)
CEO Mike Crapps called the acquisition an entry into "a new market as well as a new line of business focused on SBA and other government-guaranteed lending."
Systems conversion is scheduled for mid-March 2026.
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96th Consecutive Quarterly Dividend
The board approved a $0.16 per share dividend, payable February 24, 2026 to shareholders of record February 10, 2026. This marks the 96th consecutive quarter of dividend payments.
Share Repurchase Authorization
The board approved a $7.5M buyback authorization (approximately 4.5% of equity), expiring May 8, 2026. No shares have been repurchased yet. CEO Crapps noted this "provides some flexibility in managing capital going forward."
Capital Ratios (Bank Level)
All ratios exceed well-capitalized minimums. Tangible book value per share grew to $19.84, up from $16.93 a year ago (+17%).
Forward Catalysts
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Signature Bank Integration (Q1 2026) — Systems conversion in mid-March; watch for expense synergies and cross-sell opportunities
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NIM Trajectory — Management expects positive momentum; swap matures May 2026 which could create some near-term headwind
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SBA Lending Launch — New capability from Signature acquisition could drive fee income growth
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AUM Growth — Record investment advisory business with strong equity markets could continue expanding
Key Risks
- Loan payoffs/paydowns increased 6.4% YoY, creating growth headwinds
- Integration risk from Signature Bank acquisition
- Interest rate sensitivity when pay-fixed swap matures in May 2026
- OLEM loans increased $2.2M to $5.2M due to two underperforming relationships (though no losses anticipated)
The Bottom Line
First Community delivered another clean beat with the hallmarks investors have come to expect: margin expansion, disciplined credit, and consistent capital return. The Signature Bank acquisition adds scale and new capabilities without stretching capital ratios. With NIM momentum continuing and a strong 2026 outlook, FCCO remains a steady performer in the community bank space.
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