First Community Q4 EPS Ex-Merger $0.69 and Full-Year Income Up 37.6%, Declares $0.16 Dividend
FCCO reported Q4 net income of $4.83M and diluted EPS of $0.62 ($0.69 ex-merger); full-year net income rose 37.6% to $19.205M with EPS ex-merger of $2.62. Board declared a $0.16 dividend, approved a $7.5M buyback, net interest margin rose 5bps to 3.32%, loans grew 7.4% annually with NPAs at 0.02%.
1. Robust Fourth Quarter and Full-Year Financial Performance
First Community Corporation reported fourth quarter net income of $4.830 million and diluted EPS of $0.62, compared to $4.232 million and $0.55 in the same quarter a year earlier. Excluding merger-related expenses, adjusted EPS was $0.69. For the full year 2025, net income rose 37.6% to $19.205 million, with diluted EPS up 36.5% year-over-year to $2.47. Operating revenue growth and disciplined expense control led to an efficiency ratio improvement, supporting sustained profitability despite a modest sequential dip in quarterly earnings versus Q3.
2. Strong Loan Growth and Margin Expansion
Total loans at year-end reached $1.311 billion, up $90.5 million or 7.4% from December 2024, driven by $202.6 million of commercial loan production and $48.8 million in unfunded commercial construction advances. In Q4 alone, loans grew by $31.7 million (9.8% annualized). Net interest margin expanded by five basis points to 3.32% on a tax-equivalent basis, marking the seventh consecutive quarter of margin improvement even as benchmark rates fell, underpinned by disciplined asset-liability management and a pay-fixed swap hedging program.
3. Healthy Deposit Base and Investment Advisory Momentum
Total deposits increased 4.4% year-over-year to $1.750 billion, including a $73.6 million rise in core deposits. Although Q4 saw a modest $21.6 million sequential decline, average quarterly deposits rose by $17.8 million. Pure deposits (excluding certificates of deposit) climbed by $18.8 million on average. Meanwhile, assets under management in the investment advisory division reached a record $1.170 billion, up 26.4% from prior year, generating $2.146 million of fee revenue in the quarter and reinforcing fee-based income diversification.
4. Strong Capital, Asset Quality and Strategic Acquisition
Regulatory capital ratios comfortably exceed well-capitalized thresholds, with a Common Equity Tier I ratio of 13.11% and tangible common equity to tangible assets of 7.47%. Non-performing assets remain negligible at 0.02% of total assets, with net charge-offs of only $52,000 for the year. The January acquisition of Signature Bank of Georgia is expected to be accretive, broadening FCCO’s affluent customer footprint, enhancing capital metrics and supporting future margin expansion, thereby bolstering the Buy rating based on sustained asset quality and strategic growth initiatives.