First Community Corporation Reports Increased Net Income and Asset Growth in Q1 2025

First Community Corporation reported a significant increase in financial performance for the first quarter of 2025, with net income rising to $4.0 million, or $0.51 per diluted share, compared to $2.6 million, or $0.34 per diluted share, in the same period last year. This $1.4 million increase was primarily driven by a $2.3 million rise in net interest income, which reached $14.4 million, and a $798,000 increase in non-interest income, totaling $4.0 million. The growth in net interest income was attributed to a $126 million increase in average earning assets and a 34 basis point improvement in net interest margin, which stood at 3.12% for the quarter.

Total assets for First Community Corporation increased by $81.4 million, or 4.2%, to $2.0 billion as of March 31, 2025, compared to the end of 2024. This growth was primarily due to increases in interest-bearing bank balances, which rose by $49.8 million, and loans held-for-investment, which increased by $31.4 million. The company’s total deposits also saw a rise of $49.8 million, or 3.0%, to $1.7 billion, with a notable increase in non-interest-bearing demand deposits and interest-bearing accounts.

In terms of operational developments, First Community Corporation reported a total loan portfolio of $1.3 billion, reflecting a 2.6% increase from the previous quarter. The company’s loan production, excluding mortgage secondary market and new construction residential real estate, was $57.6 million for the quarter, up from $37.5 million in the same period last year. The bank's focus on quality loan growth is evident, with a significant portion of its loans backed by real estate collateral, which comprised approximately 91.2% of the loan portfolio.

The company also noted an increase in its allowance for credit losses, which rose to $13.6 million from $13.1 million at the end of 2024. This increase was primarily due to a rise in loans held-for-sale and adjustments in qualitative factors. Despite the increase in the allowance, the non-performing asset ratio improved slightly to 0.03% of total assets, down from 0.04% at the end of the previous year. The outlook for First Community Corporation remains positive, with management expressing confidence in the bank's ability to maintain adequate capital and liquidity to support future growth, despite potential economic challenges.