First Community Q4 EPS at $0.62, NIM 3.32% and Loans Grow 7.4%
First Community’s Q4 net income was $4.83 million with EPS of $0.62 ($0.69 ex-merger costs), versus $4.23 million and $0.55 a year earlier; full-year net income rose 37.6% to $19.21 million with EPS up 36.5% to $2.47. Net interest margin widened to 3.32%, loans grew 7.4% ($90.5M); AUM reached $1.17B.
1. Strong Quarterly and Annual Earnings Performance
First Community Corporation reported net income of $4.830 million for Q4 2025, up from $4.232 million in Q4 2024 and slightly below the prior quarter’s $5.192 million. Excluding after-tax merger expenses, adjusted Q4 net income rose to $5.357 million. Diluted EPS was $0.62 for the quarter, versus $0.55 a year ago, and $0.69 on an adjusted basis. For the full year, net income climbed 37.6% to $19.205 million, or $2.47 per share, compared with $13.955 million and $1.81 per share in 2024. Adjusted annual EPS was $2.62, reflecting strong operating leverage and the benefit of merger-related cost synergies.
2. Robust Loan Growth and Net Interest Margin Expansion
Total loans grew by $31.7 million (9.8% annualized) in Q4 to $1.311 billion and by $90.5 million (7.4% annualized) for the year. Commercial loan production accounted for $55.3 million of Q4 originations, including $14.3 million in unfunded construction advances. The loan portfolio yield remained steady at 5.84% despite three Fed rate cuts in Q4, while net interest margin on a tax-equivalent basis expanded by five basis points to 3.32%—marking the seventh consecutive quarter of margin improvement.
3. Solid Deposit Trends and Capital Ratios
Total deposits stood at $1.750 billion at year-end, up $73.6 million (4.4% annualized) from December 2024 but down $21.6 million in Q4 due to seasonal outflows. Excluding brokered certificates, core deposit growth reached $84.1 million for the year. Regulatory capital remained well above required minima, with a Tier 1 risk-based ratio of 13.11% and total risk-based ratio of 14.16%, both up from 12.87% and 13.94% a year earlier. Tangible common equity to tangible assets rose to 7.47%, and tangible book value per share increased to $19.84, reflecting retained earnings and balance sheet growth.
4. Pristine Asset Quality, Dividend Continuity and Share Repurchase Plan
Asset quality metrics remain best-in-class: non-performing assets were just 0.02% of total assets, past-due loans 0.07%, and net charge-offs negligible at $52,000 for the year. The board declared a cash dividend of $0.16 per share, marking the 96th consecutive quarterly payout. Additionally, management authorized a $7.5 million share repurchase program—approximately 4.5% of shareholders’ equity—providing capital flexibility through May 8, 2026.