FCCO's Net Income Jumps 48% on Strong Loan Growth, Mortgage Gains

Ticker: FCCO · Form: 10-Q · Filed: 2025-11-07T00:00:00.000Z

Sentiment: bullish

Topics: Regional Banking, Earnings Growth, Loan Portfolio, Net Interest Income, Mortgage Banking, Shareholder Equity, Asset Growth

Related Tickers: FCCO, KMPR, CADE, TRST

TL;DR

**FCCO is crushing it with nearly 50% net income growth, buy the dip!**

AI Summary

FIRST COMMUNITY CORP /SC/ (FCCO) reported a strong financial performance for the nine months ended September 30, 2025, with net income increasing by 47.85% to $14.375 million from $9.723 million in the prior year. Total interest income rose to $72.157 million, up from $66.348 million, primarily driven by a significant increase in loan interest income to $54.482 million from $49.230 million. Net interest income also saw a substantial increase of 19.71% to $45.708 million. Non-interest income grew by 21.75% to $12.657 million, largely due to a 55.03% increase in mortgage banking income to $2.572 million and a 21.47% rise in investment advisory fees to $5.419 million. Total assets expanded to $2.066 billion from $1.958 billion at December 31, 2024, with loans held-for-investment increasing to $1.279 billion. The company's allowance for credit losses on loans increased slightly to $13.478 million from $13.135 million, and a provision for credit losses of $401,000 was recorded for the nine-month period. Shareholders' equity increased to $161.568 million from $144.494 million, reflecting strong retained earnings growth.

Why It Matters

This strong performance from FCCO, particularly the significant increase in net income and loan growth, signals robust operational health in a competitive regional banking market. For investors, the 47.85% jump in net income and increased EPS to $1.88 basic per share demonstrate effective capital deployment and profitability, potentially leading to continued dividend growth (currently $0.46 per share for the nine months). Employees benefit from a growing company, while customers see a stable bank with increasing lending capacity. The competitive context suggests FCCO is effectively navigating interest rate environments and local market dynamics, outperforming some peers.

Risk Assessment

Risk Level: medium — While net income is up significantly, the company's investment securities available-for-sale still show substantial gross unrealized losses of $14.843 million at September 30, 2025, though this is an improvement from $20.010 million at December 31, 2024. Similarly, held-to-maturity securities have gross unrealized losses of $7.608 million. This indicates ongoing interest rate sensitivity in the investment portfolio, which could impact future earnings if rates rise further or if the company is forced to sell these securities.

Analyst Insight

Investors should consider FCCO's strong earnings growth and expanding asset base as a positive indicator. However, closely monitor the unrealized losses in the investment portfolio and the company's strategy for managing interest rate risk. A deeper dive into loan quality and deposit costs would also be prudent.

Financial Highlights

debt To Equity
11.80
revenue
$84.814M
operating Margin
N/A
total Assets
$2.066B
total Debt
$1.905B
net Income
$14.375M
eps
$1.88
gross Margin
N/A
cash Position
$193.593M
revenue Growth
+14.37%

Revenue Breakdown

SegmentRevenueGrowth
Loan Interest Income$54,482,000+10.66%
Investment Securities - Taxable$11,766,000-4.17%
Interest-bearing deposits in other banks and fed funds sold$4,877,000+29.39%
Mortgage Banking Income$2,572,000+55.03%
Investment Advisory Fees and Non-deposit Commissions$5,419,000+21.47%
Other Non-Interest Income$3,663,000+6.05%

Key Numbers

Key Players & Entities

FAQ

What were FIRST COMMUNITY CORP /SC/'s net income and EPS for the nine months ended September 30, 2025?

FIRST COMMUNITY CORP /SC/ reported net income of $14.375 million for the nine months ended September 30, 2025, a significant increase from $9.723 million in the prior year. Basic earnings per common share rose to $1.88, up from $1.28 in the same period of 2024.

How did FCCO's loan portfolio perform in the latest 10-Q filing?

FCCO's loans held-for-investment increased to $1.279 billion at September 30, 2025, from $1.220 billion at December 31, 2024. This growth contributed to a rise in loan interest income to $54.482 million for the nine months ended September 30, 2025.

What was the change in FCCO's total assets and liabilities?

Total assets for FCCO increased to $2.066 billion at September 30, 2025, from $1.958 billion at December 31, 2024. Total liabilities also increased to $1.905 billion from $1.813 billion over the same period, primarily due to an increase in total deposits to $1.771 billion.

What were the key drivers of non-interest income growth for FIRST COMMUNITY CORP /SC/?

Non-interest income for FCCO grew by 21.75% to $12.657 million for the nine months ended September 30, 2025. This was primarily driven by a 55.03% increase in mortgage banking income to $2.572 million and a 21.47% rise in investment advisory fees and non-deposit commissions to $5.419 million.

What is the current status of FCCO's investment securities and unrealized losses?

At September 30, 2025, FCCO's investment securities available-for-sale had gross unrealized losses of $14.843 million, an improvement from $20.010 million at December 31, 2024. Held-to-maturity securities also had gross unrealized losses of $7.608 million, down from $13.373 million.

How has FCCO's shareholders' equity changed?

FCCO's total shareholders' equity increased to $161.568 million at September 30, 2025, from $144.494 million at December 31, 2024. This growth was primarily due to an increase in retained earnings to $76.688 million and a reduction in accumulated other comprehensive loss.

What was the provision for credit losses for FIRST COMMUNITY CORP /SC/?

For the nine months ended September 30, 2025, FIRST COMMUNITY CORP /SC/ recorded a provision for credit losses of $401,000. This is lower than the $567,000 provision for the same period in 2024.

Are there any new accounting pronouncements affecting FCCO?

The FASB issued ASU No. 2024-03 and ASU 2025-01, requiring disaggregated disclosure of income statement expenses for public business entities. These ASUs are effective for fiscal years beginning after December 15, 2026, and FCCO does not expect them to have a significant impact on its financial position, results of operations, or cash flows.

What is the dividend policy for FCCO common stock?

For the nine months ended September 30, 2025, FCCO paid common stock dividends of $0.46 per share, totaling $3.523 million. This is an increase from $0.43 per share, or $3.272 million, paid in the same period of 2024.

How does FCCO's net interest income after provision for credit losses compare year-over-year?

FCCO's net interest income after provision for credit losses for the nine months ended September 30, 2025, was $45.307 million, a substantial increase from $37.616 million reported for the same period in 2024.

Risk Factors

Industry Context

FIRST COMMUNITY CORP /SC/ operates within the highly competitive U.S. regional banking sector. The industry is characterized by a focus on community lending, deposit gathering, and wealth management services. Current trends include increasing digital adoption, evolving regulatory landscapes, and the persistent impact of interest rate movements on net interest margins. Consolidation remains a theme, with smaller institutions seeking scale or strategic partnerships.

Regulatory Implications

As a financial institution, FCCO is subject to stringent oversight from federal and state regulators, including the Federal Reserve and state banking authorities. Compliance with capital adequacy requirements, consumer protection laws, and anti-money laundering regulations is paramount. Any shifts in regulatory policy, such as changes to reserve requirements or lending standards, could directly impact the company's operations and profitability.

What Investors Should Do

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Key Dates

Glossary

Allowance for credit losses – loans
An estimate of the amount of uncollectible loans in the company's loan portfolio. It is a contra-asset account that reduces the carrying value of loans on the balance sheet. (Indicates the company's assessment of potential loan defaults and its provision for such losses.)
Net interest income
The difference between the interest income generated by a financial institution's interest-earning assets and the interest expense paid on its interest-bearing liabilities. (A key measure of a bank's profitability from its core lending and borrowing activities.)
Non-interest income
Revenue generated from sources other than traditional interest income, such as fees, commissions, and service charges. (Diversifies revenue streams and can indicate the strength of ancillary services offered by the company.)
Loans held-for-investment
Loans that the company intends to hold until maturity or for the foreseeable future, as opposed to loans held for short-term resale. (Represents the core lending business and a significant portion of the company's assets.)
Accumulated other comprehensive loss
A component of shareholders' equity that includes unrealized gains and losses on certain investments and foreign currency translations that are not included in net income. (Reflects unrealized changes in value that can impact the overall equity position of the company.)

Year-Over-Year Comparison

FIRST COMMUNITY CORP /SC/ has demonstrated robust year-over-year growth in the nine months ended September 30, 2025, compared to the same period in 2024. Net income surged by 47.85%, and basic EPS increased significantly. Total assets grew to $2.066 billion from $1.958 billion at year-end 2024, indicating expansion. Net interest income saw a healthy 19.71% increase, driven by strong loan growth. Non-interest income also performed well, rising 21.75%, with notable contributions from mortgage banking and investment advisory fees. Shareholders' equity expanded, reflecting strong retained earnings.

Filing Stats: 4,463 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2025-11-07 15:06:49

Key Financial Figures

Filing Documents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 1 Item 1.

Financial Statements

Financial Statements 1 Consolidated Balance Sheets 1 Consolidated Statements of Income 2 Consolidated Statements of Comprehensive Income 4 Consolidated Statements of Changes in Shareholders' Equity 5 Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 58 Item 4.

Controls and Procedures

Controls and Procedures 58

– OTHER INFORMATION

PART II – OTHER INFORMATION 59 Item 1.

Legal Proceedings

Legal Proceedings 59 Item 1A.

Risk Factors

Risk Factors 59 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 59 Item 3. Defaults Upon Senior Securities 59 Item 4. Mine Safety Disclosures 59 Item 5. Other Information 59 Item 6. Exhibits 60

SIGNATURES

SIGNATURES 61

– FINANCIAL

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements FIRST COMMUNITY CORPORATION CONSOLIDATED BALANCE SHEETS September 30, (Dollars in thousands, except par values) 2025 December 31, (Unaudited) 2024 ASSETS Cash and due from banks $ 30,356 $ 26,373 Interest-bearing bank balances 163,237 123,455 Investment securities available-for-sale 299,529 279,582 Investment securities held-to-maturity, fair value of $191,270 and $196,040 at September 30, 2025 and December 31, 2024, respectively, net of allowance for credit losses — investments 198,805 209,413 Other investments, at cost 2,942 2,679 Loans held-for-sale 8,970 9,662 Loans held-for-investment 1,279,310 1,220,542 Less, allowance for credit losses – loans 13,478 13,135 Net loans held-for-investment 1,265,832 1,207,407 Property and equipment – net 29,203 29,975 Lease right-of-use asset 2,264 2,477 Bank owned life insurance 31,590 30,973 Other real estate owned 194 543 Intangible assets 328 446 Goodwill 14,637 14,637 Other assets 18,711 20,399 Total assets $ 2,066,598 $ 1,958,021 LIABILITIES Deposits: Non-interest bearing $ 483,260 $ 462,717 Interest bearing 1,287,904 1,213,184 Total deposits 1,771,164 1,675,901 Securities sold under agreements to repurchase 99,614 103,110 Junior subordinated debt 14,964 14,964 Lease liability 2,443 2,646 Other liabilities 16,845 16,906 Total liabilities $ 1,905,030 $ 1,813,527 SHAREHOLDERS' EQUITY Preferred stock, par value $ 1.00 per share, 10,000,000 shares authorized; none issued and outstanding — — Common stock, par value $ 1.00 per share; 20,000,000 shares authorized; issued and outstanding 7,689,694 at September 30, 2025 and 7,644,424 at December 31, 2024 7,690 7,644 Nonvested restricted stock and stock units 2,544 2,639 Additional paid in capital 94,819 93,834 Retained earnings 76,688 65,836 Accumulated other comprehensive loss ( 20,173 ) ( 25,459 ) Total sha

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 1 FIRST COMMUNITY CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollars in thousands, except per share amounts) Three Months ended September 30, 2025 2024 Interest and dividend income: Loans, including fees $ 18,864 $ 17,279 Investment securities – taxable 3,982 3,975 Investment securities – non taxable 346 355 Interest-bearing deposits in other banks and fed funds sold 1,710 1,552 Total interest income 24,902 23,161 Interest expense: Deposits 7,995 8,287 Securities sold under agreements to repurchase 640 506 Other borrowed money 273 956 Total interest expense 8,908 9,749 Net interest income 15,994 13,412 Provision for (release of) credit losses 201 ( 16 ) Net interest income after provision for (release of) credit losses 15,793 13,428 Non-interest income: Deposit service charges 243 228 Mortgage banking income 934 575 Investment advisory fees and non-deposit commissions 1,862 1,595 Gain on sale of other real estate owned — 5 Other non-recurring income 188 — Other 1,242 1,167 Total non-interest income 4,469 3,570 Non-interest expense: Salaries and employee benefits 8,059 7,422 Occupancy 792 793 Equipment 377 391 Marketing and public relations 557 477 FDIC insurance assessments 286 290 Other real estate expense 12 11 Amortization of intangibles 39 40 Merger 575 — Other 2,977 2,567 Total non-interest expense 13,674 11,991 Net income before tax 6,588 5,007 Income tax expense 1,396 1,146 Net income $ 5,192 $ 3,861 Basic earnings per common share $ 0.68 $ 0.51 Diluted earnings per common share $ 0.67 $ 0.50 See Notes to Consolidated Financial Statements 2 FIRST COMMUNITY CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollars in thousands, except per share amounts) Nine Months ended September 30, 2025 2024 Interest and dividend income:

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