First Community Corporation Reports $5.2 Million Net Income and Announces Merger with Signature Bank of Georgia

First Community Corporation reported a significant increase in financial performance for the second quarter of 2025, with net income rising to $5.2 million, or $0.67 per diluted share, compared to $3.3 million, or $0.42 per diluted share, in the same period last year. This increase of $1.9 million was primarily driven by a $2.6 million rise in net interest income, which reached $15.3 million, alongside a reduction in the provision for credit losses by $691,000. Total interest income increased to $24.2 million, up from $21.9 million, reflecting a favorable shift in the interest rate environment and a growth in average earning assets.

In terms of operational metrics, total assets grew by $88.2 million, or 4.5%, to $2.0 billion as of June 30, 2025, compared to $1.96 billion at the end of 2024. The increase was attributed to higher cash and due from banks, interest-bearing bank balances, and investment securities. Loans held for investment also saw a notable increase, rising to $1.26 billion, up from $1.22 billion at the end of the previous fiscal year. The company’s total deposits increased by $78.1 million, or 4.7%, to $1.75 billion, with non-interest-bearing deposits contributing significantly to this growth.

Strategically, First Community Corporation announced a merger agreement with Signature Bank of Georgia, which is expected to enhance its market presence and operational scale. The merger, subject to regulatory and shareholder approvals, is projected to create a combined entity with approximately $2.3 billion in total assets. This strategic move aligns with the company's goal of expanding its footprint and enhancing service offerings in the banking sector.

The company also reported improvements in its credit quality metrics, with a decrease in non-accrual loans to $210,000 from $219,000 at the end of 2024. The allowance for credit losses stood at $13.3 million, reflecting a slight increase from the previous period, indicating a proactive approach to managing credit risk. The non-performing asset ratio improved to 0.02% of total assets, down from 0.04% at the end of 2024, showcasing effective risk management practices.

Looking ahead, First Community Corporation expressed optimism about its growth trajectory, supported by a strong capital position and a focus on quality loan growth. The company anticipates continued improvements in net interest income and overall financial performance, driven by strategic initiatives and favorable market conditions. The management remains committed to enhancing shareholder value while navigating the evolving economic landscape.