First Community Corporation Reports $19.2 Million Net Income for 2025

First Community Corporation (FCCO), a South Carolina-based bank holding company, reported net income of $19.2 million for the year ended December 31, 2025, a notable increase from $14.0 million in 2024. This translates to diluted earnings per common share of $2.47, up from $1.81 in the previous year. The company's financial performance was bolstered by a $10.0 million increase in net interest income, driven by a combination of asset growth and margin expansion. Additionally, the provision for credit losses decreased slightly, and non-interest income saw a $2.9 million boost, further contributing to the improved profitability.

The company's balance sheet also reflected positive growth, with total assets reaching $2.1 billion at the end of 2025, compared to $2.0 billion in 2024. Loan growth was a key driver, with the loan portfolio (excluding loans held for sale) increasing by $90.5 million to $1.3 billion. Deposits also experienced growth, reaching $1.7 billion. Shareholders' equity increased to $167.6 million, representing 8.1% of total assets, indicating a strengthened capital position. The company's net interest margin improved to 3.23% on a taxable equivalent basis, up from 2.92% in the prior year, reflecting effective management of interest-earning assets and interest-bearing liabilities.

Strategic developments included a focus on growing core deposits and managing the cost of funds. The company continued to emphasize quality loan growth, particularly in the small to medium-sized business sector. Non-interest income benefited from increased mortgage banking income, driven by higher secondary market production, and higher investment advisory fees, reflecting growth in assets under management. Non-interest expenses increased, primarily due to higher salaries and employee benefits, marketing expenses, and merger-related costs. The company's effective tax rate was 22.7% for 2025, compared to 21.5% in 2024.

Key operational developments included maintaining strong asset quality, with non-performing assets remaining low at 0.02% of total assets. The allowance for credit losses stood at 1.05% of total loans, reflecting a conservative approach to managing credit risk. The company's capital ratios remained well above regulatory requirements, with a Tier 1 risk-based capital ratio of 13.11% and a total risk-based capital ratio of 14.16%. The company also continued its practice of paying quarterly cash dividends, declaring $0.62 per share in 2025, compared to $0.58 in 2024. The company's board of directors approved a plan to repurchase up to $7.5 million of its common stock, demonstrating confidence in its financial position and future prospects.