First Community Corporation Reports 34% Increase in Q3 Net Income, Announces Merger with Signature Bank

First Community Corporation reported a significant increase in its financial performance for the third quarter and the first nine months of 2025, as detailed in its latest 10-Q filing. The company achieved a net income of $5.2 million for the three months ended September 30, 2025, a 34% increase from $3.9 million in the same period last year. This translated to diluted earnings per share of $0.67, up from $0.50. For the nine months ending September 30, 2025, net income rose to $14.4 million, or $1.85 per share, compared to $9.7 million, or $1.26 per share, in the prior year. The increase in net income was primarily driven by a $2.6 million rise in net interest income and a $899,000 increase in non-interest income, despite higher provisions for credit losses and non-interest expenses.

The company’s total assets grew by $108.6 million, or 5.5%, to $2.1 billion as of September 30, 2025, compared to $1.96 billion at the end of 2024. This growth was fueled by increases in interest-bearing bank balances, investment securities, and loans held for investment, which rose by $58.8 million to $1.3 billion. The loan portfolio's composition remained stable, with real estate loans continuing to represent a significant portion of total loans. The company also reported a slight increase in its allowance for credit losses, which stood at $13.5 million, reflecting a proactive approach to managing credit risk amid rising loan volumes.

In terms of strategic developments, First Community Corporation announced a merger agreement with Signature Bank of Georgia, expected to close in early 2026. This merger is anticipated to enhance the company's market presence and operational capabilities. The company has also focused on increasing its non-interest income, with notable growth in mortgage banking income and investment advisory fees, which rose to $2.6 million and $5.4 million, respectively, for the nine months ended September 30, 2025.

Operationally, First Community Corporation reported a total deposit increase of $95.3 million, or 5.7%, to $1.77 billion, with a focus on growing pure deposits to manage funding costs effectively. The company maintained a loan-to-deposit ratio of 72.7%, indicating a balanced approach to leveraging its deposit base for loan growth. The number of full-time equivalent employees increased to 272, reflecting the company's commitment to supporting its growth initiatives.

Looking ahead, First Community Corporation expressed optimism about its financial outlook, supported by strong capital ratios and a commitment to maintaining adequate liquidity. The company continues to monitor market conditions and regulatory developments, particularly in light of the upcoming merger and potential impacts on its operations. The management remains focused on enhancing shareholder value while navigating the challenges posed by the current economic environment.