LEXINGTON, S.C., April 22, 2026 /PRNewswire/ --
Highlights for First Quarter 2026
-- Net income of $5.498 million, an increase of 37.6% year-over-year and
13.8% on a linked quarter basis. Net income excluding merger expenses1 of
$6.754 million, an increase of 69.0% year-over-year and 26.1%, on a
linked quarter basis.
-- Diluted EPS of $0.59 per common share, an increase of 15.7%
year-over-year and a decrease of 4.8% on a linked quarter basis. Diluted
EPS excluding merger expenses1 of $0.72, an increase of 41.1%
year-over-year and 4.3% on a linked quarter basis.
-- Total deposits were $2.048 billion at March 31, 2026 with growth of
$298.7 million during the quarter, including $229.8 related to the
acquisition of Signature Bank of Georgia ("Signature Bank"). Excluding
the impact of the day one Signature Bank acquisition balances, organic
deposit growth was $68.9 during the first quarter of 2026, which
represents 16.0% linked quarter annualized growth.
-- Total loans were $1.549 billion at March 31, 2026 with growth of $238.1
million during the quarter, including $195.5 million related to the
acquisition of Signature Bank. Excluding the impact of the day one
Signature Bank acquisition balances, organic loan growth was $42.6
million during the first quarter of 2026, which represents 13.2% linked
quarter annualized growth.
-- Capital ratios including the Tangible common shareholders' equity to
tangible assets1 (TCE) and the Leverage ratio increased to 7.93% and
9.06%, respectively.
-- Net interest margin, on a tax equivalent basis, of 3.37%, an expansion of
five basis points compared to the fourth quarter of 2025. This is the
eighth consecutive quarter of margin expansion.
-- Key credit quality metrics continue to be strong with net charge-offs,
including overdrafts, during the first quarter of 2026 of $5 thousand;
net loan recoveries, excluding overdrafts, during the quarter of $4
thousand; non-performing assets of 0.04%; and past due loans of 0.17% at
March 31, 2026.
-- Investment advisory revenue of $2.271 million. Assets under management
(AUM) were $1.130 billion at March 31, 2026, compared to the December 31,
2025 AUM amount of $1.170 billion.
-- Cash dividend of $0.16 per common share, the 97th consecutive quarter of
cash dividends paid to common shareholders.
Today, First Community Corporation (Nasdaq: FCCO), the holding company for First Community Bank, announced earnings and discussed the results of operations and the company's activities during the first quarter of 2026.
First Community reported net income for the first quarter of 2026 of $5.498 million with diluted earnings per common share of $0.59. This compares to net income and diluted earnings per common share of $3.997 million and $0.51, respectively, year-over-year and $4.830 million and $0.62, respectively, on a linked quarter basis. First quarter of 2026 results include the impact of the acquisition of Signature Bank, which was closed on January 8, 2026. Net income excluding merger expenses(1) was $6.754 million, an increase of 69.0% year-over-year and 26.1%, on a linked quarter basis. Diluted EPS excluding merger expenses(1) was $0.72, an increase of 41.1% year-over-year and 4.3% on a linked quarter basis.
Cash Dividend and Capital
The Board of Directors has approved a cash dividend for the first quarter of 2026 of $0.16 per common share. This dividend is payable on May 19, 2026 to shareholders of record of the company's common stock as of May 5, 2026. First Community President and CEO, Mike Crapps commented, "The entire board is pleased that our performance enables the company to continue its cash dividend for the 97(th) consecutive quarter."
Each of the regulatory capital ratios for the bank exceeds the well capitalized minimum levels currently required by regulatory statute. At March 31, 2026, the bank's regulatory capital ratios, Leverage, Tier I Risk Based and Total Risk Based, were 9.06%, 12.80%, and 13.95%, respectively. This compares to the same ratios as of March 31, 2025 of 8.45%, 12.90%, and 13.99%, respectively. As of March 31, 2026, the bank's Common Equity Tier I ratio was 12.80% compared to 12.90% at March 31, 2025. The bank's Tangible common shareholders' equity to tangible assets(1) (TCE) was 7.93% at March 31, 2026 compared to 7.47% at December 31, 2025 and 6.66% as of March 31, 2025.
Tangible Book Value (TBV) per share(1) increased during the quarter to $19.88 per share at March 31, 2026, from $19.84 per share as of December 31, 2025, and $17.56 at March 31, 2025.
During the first quarter of 2026, under the previously approved Share Repurchase Plan, a total of 1,483 shares of the company's common stock were repurchased at an average price of $27.77 and a total value of $41,180.
Loan Portfolio Quality/Allowance for Credit Losses
The company's asset quality remains strong. The non-performing assets (NPAs) were 0.04% of total assets at March 31, 2026, with $853 thousand in NPAs, which compares to 0.02% and $372 thousand at December 31, 2025. The past due ratio for all loans was 0.17% at March 31, 2026, compared to 0.07% at December 31, 2025. During the first quarter of 2026, the bank had net charge-offs, including overdrafts, of $5 thousand and net loan recoveries, excluding overdrafts, of $4 thousand. During the first quarter of 2026, substandard loans increased $2.7 million primarily due to a $2.4 million loan that was identified during due diligence related to the acquisition of Signature Bank. Although principal and interest payments continue as agreed, the underlying real estate project is unfinished, therefore creating a credit mark of $2.0 million in recognition of the collateral deficiency. Related to this same matter, the allowance for credit losses increased from 1.05% to 1.19%. The ratio of classified loans plus Other Real Estate Owned (OREO) is 1.83% of total bank regulatory risk-based capital at March 31, 2026.
Balance Sheet
Total loans increased during the first quarter of 2026 by $238.1 million to $1.549 billion at March 31, 2026, compared to $1.311 billion at December 31, 2025. This increase includes $195.5 million related to the acquisition of Signature Bank. Excluding the impact of the day one Signature Bank acquisition balances, organic loan growth was $42.6 million during the first quarter of 2026, which represents 13.2% linked quarter annualized growth. Commercial loan production was a record high at $91.2 million during the first quarter of 2026, a 64.9% increase in production compared to the fourth quarter of 2025. There were also advances of unfunded commercial construction loans of $10.2 million during the first quarter of 2026. Offsetting some of this loan growth were loan payoffs and paydowns in the first quarter of 2026 which were up approximately 57% compared to the fourth quarter of 2025.
The yield on the loan portfolio was 5.94% in the first quarter of 2026 as compared to 5.84% in the fourth quarter of 2025. Purchase accounting loan amortization on the acquired Signature Bank loan portfolio resulted in amortization expense of $437 thousand thus reducing loan yields by 0.12% during the first quarter of 2026.
Total deposits increased $298.7 million during the first quarter of 2026 to $2.048 billion at March 31, 2026 compared to $1.750 billion at December 31, 2025, including $229.8 related to the acquisition of Signature Bank. Excluding the impact of the day one Signature Bank acquisition balances, organic deposit growth was $68.9 during the first quarter of 2026, which represents 16.0% linked quarter annualized growth. Pure deposits, which are defined as total deposits less certificates of deposit, increased $291 million on a linked quarter basis to $1.727 billion at March 31, 2026. Securities sold under agreements to repurchase, which are related to customer cash management accounts or business sweep accounts, were $99.8 million at March 31, 2026, a decrease of $7.4 million on a linked quarter basis. Non-interest-bearing deposits increased by $76.6 million on a linked quarter basis to $543.8 million or 26.6% of total deposits at March 31, 2026. The average balance per customer deposit account as of March 31, 2026 was $34,882, with the average balance per consumer account of $18,169 and per non-consumer account of $75,642. All of the above point to the granularity and the quality of the bank's deposit franchise. Costs of deposits increased seven basis points to 1.80% in the first quarter of 2026 compared to 1.73% in the fourth quarter of 2025. Cost of funds increased five basis points on a linked quarter basis to 1.85% in the first quarter of 2026 from 1.80% in the fourth quarter of 2025.
The bank has other short-term investments, primarily interest bearing cash at the Federal Reserve Bank, of $182.5 million at March 31, 2026 compared to $137.2 million at December 31, 2025. The investment portfolio was $512.6 million at March 31, 2026 compared to $492.2 million at December 31, 2025. The yield increased to 3.32% during the first quarter of 2026 as compared to 3.30% in the fourth quarter of 2025. The effective duration of the total investment portfolio is 3.3 at March 31, 2026. Accumulated Other Comprehensive Loss (AOCL) was $18.8 million at March 31, 2026 compared to $18.4 million at December 31, 2025.
Net Interest Income/Net Interest Margin
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