First Community Corporation Reports 37.6% Increase in Net Income for Q1 2026

First Community Corporation reported significant financial growth in its latest quarterly results, with net income for the three months ending March 31, 2026, reaching $5.5 million, a 37.6% increase from $4.0 million in the same period last year. This translates to diluted earnings per share of $0.59, up from $0.51. The increase in net income was primarily driven by a $4.0 million rise in net interest income, which was bolstered by a $349.2 million increase in average earning assets, largely attributed to the acquisition of Signature Bank of Georgia (SGBG). The net interest margin also improved by 23 basis points to 3.35%.

The company’s total assets increased by $333.8 million, or 16.2%, to $2.4 billion as of March 31, 2026, compared to $2.1 billion at the end of 2025. This growth was fueled by increases in cash and due from banks, interest-bearing bank balances, and loans held-for-investment, which rose by $238.1 million to $1.5 billion. The acquisition of SGBG contributed approximately $191.4 million in loans, enhancing the company’s overall loan portfolio. Additionally, total deposits surged by $298.7 million, or 17.1%, to $2.05 billion, reflecting a strategic focus on growing pure deposits.

Operationally, First Community Corporation has expanded its workforce, increasing its employee headcount to 282 full-time equivalents as of March 31, 2026, up from 265 a year earlier. The company also launched a new segment in government guaranteed lending, which generated $395,000 in income during the quarter. This segment was part of the SGBG acquisition, which was finalized on January 8, 2026, and involved the issuance of approximately 1.7 million shares of common stock.

The company’s provision for credit losses was $193,000 for the first quarter of 2026, a decrease from $437,000 in the same period last year. The allowance for credit losses increased to $18.4 million, reflecting the growth in the loan portfolio. Non-performing assets rose slightly to $853,000, representing 0.04% of total assets, compared to $372,000, or 0.02%, at the end of 2025. The company continues to monitor its credit quality closely, particularly given the significant portion of its loan portfolio secured by real estate.

Looking ahead, First Community Corporation remains optimistic about its growth trajectory, bolstered by the recent acquisition and a strong capital position. The company’s total shareholders’ equity increased by 31.8% to $220.8 million, representing 9.2% of total assets. The management anticipates continued growth in net interest income and overall profitability, while maintaining a focus on managing credit risk and enhancing operational efficiency.