First Community Corporation reported GAAP earnings of $0.66 per share for the fourth quarter of 2025, representing a 36.5% increase year-over-year and just a $0.02 shortfall versus consensus estimates. Net interest income rose 18% to $32.4 million, driven by a 12% growth in loan balances to $3.1 billion. Revenue metrics outpaced expenses, resulting in an efficiency ratio improvement to 58.2% from 61.7% a year earlier and supporting the continuation of a Buy recommendation despite expectations for more tempered profit growth in 2026.

The bank maintained strong asset quality, with nonperforming assets declining to 0.45% of total assets from 0.62% sequentially and a provision expense of just $1.2 million. Net interest margin expanded by 15 basis points to 3.75%, benefiting from a mix shift into higher-yielding commercial real estate and C&I loans. First Community’s Common Equity Tier 1 ratio stood at 9.8%, comfortably above regulatory requirements, while the tangible book value per share increased 4.3% year-over-year to $14.56.

The closing of the Signature Bank of Georgia deal added $450 million in performing loans and $200 million in low-cost deposits, boosting pro forma assets to $5.2 billion. Management projects a 15 basis point lift in net interest margin and a 20-point improvement in the efficiency ratio once integration synergies are realized. The acquisition also expands First Community’s footprint in affluent Atlanta submarkets, enhancing cross-sell opportunities and supporting return on tangible equity targets above 12%.