On April 23, 2025, First Community Corp (FCCO, Financial) released its 8-K filing announcing its first-quarter results for 2025. The bank holding company, which provides a range of banking products and services, reported a net income of $3.997 million and a diluted earnings per share (EPS) of $0.51. This performance exceeded the analyst estimates of $0.45 EPS. However, the reported revenue of $17.39 million met the analyst estimate.
Company Overview
First Community Corp is a bank holding company that, along with its subsidiaries, offers a variety of banking services to professionals and small to medium-sized businesses. Its offerings include consumer and commercial banking, mortgage, brokerage and investment services, online banking, and insurance services. The company operates through segments such as Commercial and Retail Banking, Mortgage Banking, Investment Advisory and Non-Deposit, and Corporate.
Performance Highlights
First Community Corp's net income for Q1 2025 was $3.997 million, with a diluted EPS of $0.51, surpassing the previous year's figures of $2.597 million and $0.34, respectively. Compared to the previous quarter, the net income was slightly lower than $4.232 million, with an EPS of $0.55. The company's performance is significant as it reflects strong operational efficiency and growth in key areas such as loans and deposits.
Financial Achievements
The company reported total deposits of $1.726 billion, with customer deposits (excluding brokered CDs) at $1.715 billion as of March 31, 2025. This represents a $49.8 million increase during the quarter, translating to a 12.1% annualized growth rate. Total loan growth was $31.4 million, a 10.4% annualized growth rate. These achievements are crucial for banks as they indicate a healthy expansion of the customer base and lending activities.
Key Financial Metrics
First Community Corp's regulatory capital ratios remain strong, with Leverage, Tier I Risk-Based, and Total Risk-Based ratios at 8.45%, 12.90%, and 13.99%, respectively. The Tangible Book Value (TBV) per share increased to $17.56, up from $16.93 at the end of 2024. The company's asset quality is excellent, with non-performing assets at 0.03% of total assets.
| Metric | Q1 2025 | Q4 2024 | Q1 2024 |
|---|---|---|---|
| Net Interest Income | $14.4 million | $13.9 million | $12.1 million |
| Net Interest Margin | 3.13% | 3.00% | 2.79% |
| Non-Interest Income | $3.982 million | $3.608 million | $3.184 million |
Analysis and Commentary
First Community Corp's robust loan and deposit growth, coupled with improved net interest income and margin, underscore its strong financial health. The company's strategic focus on enhancing its deposit franchise and optimizing its funding mix has resulted in reduced costs of funds and deposits. The bank's asset quality remains high, with minimal non-performing assets, which is a positive indicator for future stability.
First Community Bank President and CEO Ted Nissen noted, “Loan growth was strong in the first quarter of 2025 with production up 93% over the same period in 2024 and 62% over the fourth quarter of 2024. This combined with lower payoffs and paydowns combined for a strong quarter in net loan growth.”
Overall, First Community Corp's Q1 2025 results demonstrate its ability to navigate a challenging economic environment while maintaining strong growth and profitability. The company's continued focus on expanding its loan and deposit base, coupled with effective cost management, positions it well for sustained success in the banking industry.
Explore the complete 8-K earnings release (here) from First Community Corp for further details.
