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 expenses1 was $6.754 million, an increase of 69.0% year-over-year and 26.1%, on a linked quarter basis. Diluted EPS excluding merger expenses1 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 97th 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 assets1 (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 share1 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
Net interest income was $18.4 million in the first quarter of 2026 compared to $16.3 million in the fourth quarter of 2025 and $14.4 million in the first quarter of 2025. The net interest margin, on a tax equivalent basis, was 3.37% for the first quarter of 2026 compared to 3.32% in the fourth quarter of 2025 and 3.13% in the first quarter of 2025. This margin expansion was driven by a combination of factors including improved loan portfolio yield and the growth in the loan portfolio. Purchase accounting amortization on the acquired Signature Bank loan portfolio resulted in amortization expense of $437 thousand thus reducing net interest margin by 0.08% during the first quarter of 2026.
Non-Interest Income
Non-interest income for the first quarter of 2026 was $4.790 million, compared to $4.288 million in the fourth quarter of 2025 and $3.982 million in the first quarter of 2025, an increase of 11.7% and 20.3%, respectively. Non-interest income for the first quarter of 2026 includes income from the Government Guaranteed Lending line of business that was part of the acquisition of Signature Bank and is discussed further below.
Total production in the mortgage line of business in the first quarter of 2026 was $42.0 million which was comprised of $25.4 million in secondary market loans, $1.9 million in adjustable rate mortgages (ARMs), and $14.7 million in construction loans. Total fee revenue in the mortgage line of business was $681 thousand in the first quarter of 2026, which includes $673 thousand associated with the secondary market loans with a gain-on-sale margin of 2.65%. This compares to production year-over-year of $43.9 million which was comprised of $25.8 million in secondary market loans, $4.0 million in ARMs, and $14.1 million in construction loans during the first quarter of 2025. Fee revenue associated with the secondary market loans in the first quarter of 2025 was $755 thousand with a gain-on-sale margin of 2.93%.
Revenue from the financial planning and investment advisory line of business was $2.271 million for the first quarter of 2026 compared to $2.146 million in the fourth quarter of 2025 and $1.806 million in the first quarter of 2025. Assets Under Management (AUM) were $1.130 billion at March 31, 2026, compared to $1.170 billion at December 31, 2025 and $892.8 million at March 31, 2025.
Fee revenue from the Government Guaranteed Lending line of business was $395 thousand in the first quarter of 2026. Production in this line of business in the first quarter of 2026 included $2.36 million in SBA loans. During the quarter, the company sold $2.021 million in loans, which resulted in a premium of $194 thousand and a gain-on-sale margin of 9.59%. Loan volume was temporarily impacted by the federal government shutdowns which affected the processing of loans in the pipeline. On April 10, 2026, First Community Bank received the Preferred Lender status from the Small Business Administration. With the shutdown resolved and the Preferred Lender status in place, the company is well positioned for future production in this line of business.
Non-Interest Expense
Non-interest expense was $17.031 million in the first quarter of 2026 which included $1.581million in merger expenses.
Other
On January 8, 2026, the company closed its previously announced acquisition of Signature Bank and completed the bank systems conversion in March of 2026. With this acquisition, the company expanded its footprint into the Atlanta, Georgia market and added a Government Guaranteed Lending line of business.
During the first quarter of 2026, the company purchased $12.544 million in federal tax credits for $11.666 million, which resulted in a benefit to income tax expense of $878 thousand.
About First Community Corporation
First Community Corporation stock trades on The NASDAQ Capital Market under the symbol "FCCO" and is the holding company for First Community Bank, a local community bank based in the Midlands of South Carolina. First Community Bank is a full-service commercial bank offering deposit and loan products and services, residential mortgage lending, financial planning/investment advisory services, and SBA/USDA lending. First Community serves customers in the Midlands, Aiken, Upstate and Piedmont Regions of South Carolina as well as Augusta and Atlanta, Georgia. For more information, visit www.firstcommunitysc.com.
FORWARD-LOOKING STATEMENTS
This news release and certain statements by our management may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans, goals, projections and expectations, and are thus prospective. Forward-looking statements can be identified by words such as "anticipate", "expects", "intends", "believes", "may", "likely", "will", "plans", "positions", "future", "forward", or other statements that indicate future periods. Such risks, uncertainties and other factors, include, among others, the following: (1) the risk that anticipated cost savings or other expected benefits of the acquisition of Signature Bank of Georgia may not be realized; (2) potential disruption to client or employee relationships as a result of the acquisition of Signature Bank of Georgia; (3) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (4) the strength of the United States economy in general and the strength of the local economies in which we conduct operations may be different than expected; (5) the rate of delinquencies and amounts of charge-offs, the level of allowance for credit loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (6) changes in legislation, regulation, policies or administrative practices, whether by judicial, governmental, or legislative action; (7) adverse conditions in the stock market, the public debt markets and other capital markets (including changes in interest rate conditions) could continue to have a negative impact on the company; (8) changes in interest rates, which have and may continue to affect our deposit and funding costs, net income, prepayment penalty income, mortgage banking income, and other future cash flows, or the market value of our assets, including our investment securities; (9) technology and cybersecurity risks, including potential business disruptions, reputational risks, and financial losses, associated with potential attacks on or failures by our computer systems and computer systems of our vendors and other third parties; (10) elevated inflation which causes adverse risk to the overall economy, and could indirectly pose challenges to our customers and to our business; (11) any increases in FDIC assessment which has increased, and may continue to increase, our cost of doing business; (12) the adverse effects of events beyond our control that may have a destabilizing effect on financial markets and the economy, such as epidemics and pandemics, war or terrorist activities, essential utility outages, government shutdowns, deterioration in the global economy, instability in the credit markets, disruptions in our customers' supply chains or disruption in transportation; and (13) risks, uncertainties and other factors disclosed in our most recent Annual Report on Form 10-K filed with the SEC, or in any of our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K filed with the SEC since the end of the fiscal year covered by our most recently filed Annual Report on Form 10-K, which are available at the SEC's Internet site (http://www.sec.gov).
Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. We can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
1 Considered non-GAAP financial measure - See Non-GAAP Financial Measures and reconciliation of non-GAAP financial measures to
GAAP on pages 10 and 11.
FIRST COMMUNITY CORPORATION
BALANCE SHEET DATA
(Dollars in thousands, except per share data)
As of
March 31, December 31, September 30, June 30, March 31,
2026 2025 2025 2025 2025
Total Assets $2,391,531 $2,057,732 $2,066,598 $2,046,265 $2,039,371
Other Short-term Investments and CDs(1) 182,497 137,184 163,237 151,323 173,246
Investment Securities
Investments Held-to-Maturity 188,728 195,135 198,824 201,761 205,819
Investments Available-for-Sale 320,710 294,109 299,529 302,627 286,944
Other Investments at Cost 3,204 2,942 2,942 2,894 2,894
Total Investment Securities 512,642 492,186 501,295 507,282 495,657
Loans Held-for-Sale 6,936 10,737 8,970 10,975 7,052
Loans 1,549,143 1,311,019 1,279,310 1,260,055 1,251,980
Allowance for Credit Losses - Investments 16 19 19 19 24
Allowance for Credit Losses - Loans 18,364 13,806 13,478 13,330 13,608
Allowance for Credit Losses - Unfunded Commitments 654 531 529 490 455
Goodwill 31,140 14,637 14,637 14,637 14,637
Other Intangibles 2,805 289 328 368 407
Total Deposits 2,048,264 1,749,544 1,771,164 1,754,041 1,725,718
Securities Sold Under Agreements to Repurchase 99,835 107,189 99,614 103,640 129,812
Junior Subordinated Debt 14,964 14,964 14,964 14,964 14,964
Accumulated Other Comprehensive Loss (AOCL) (18,834) (18,401) (20,173) (21,863) (22,973)
Shareholders' Equity 220,817 167,557 161,568 155,500 149,959
Book Value Per Common Share $23.50 $21.78 $21.01 $20.23 $19.52
Tangible Book Value Per Common Share (non-GAAP) $19.88 $19.84 $19.06 $18.28 $17.56
Equity to Assets 9.23 % 8.14 % 7.82 % 7.60 % 7.35 %
Tangible Common Equity to Tangible Assets (TCE Ratio) (non-GAAP) 7.93 % 7.47 % 7.15 % 6.92 % 6.66 %
Loan to Deposit Ratio (Includes Loans Held-for-Sale) 75.97 % 75.55 % 72.74 % 72.46 % 72.96 %
Loan to Deposit Ratio (Excludes Loans Held-for-Sale) 75.63 % 74.93 % 72.23 % 71.84 % 72.55 %
Allowance for Credit Losses - Loans/Loans 1.19 % 1.05 % 1.05 % 1.06 % 1.09 %
Regulatory Capital Ratios (Bank):
Leverage Ratio 9.06 % 8.66 % 8.55 % 8.44 % 8.45 %
Tier 1 Capital Ratio 12.80 % 13.11 % 13.10 % 13.04 % 12.90 %
Total Capital Ratio 13.95 % 14.16 % 14.15 % 14.10 % 13.99 %
Common Equity Tier 1 Capital Ratio 12.80 % 13.11 % 13.10 % 13.04 % 12.90 %
Tier 1 Regulatory Capital $210,758 $179,295 $175,471 $171,611 $167,673
Total Regulatory Capital $229,791 $193,650 $189,497 $185,450 $181,759
Common Equity Tier 1 Capital $210,758 $179,295 $175,471 $171,611 $167,673
(1)Includes federal funds sold and interest-bearing deposits
Average Balances:
Three months ended
March 31, December 31, March 31,
2026 2025 2025
Average Total Assets $2,352,005 $2,072,128 $1,981,493
Average Loans (Includes Loans Held-for-Sale) 1,511,496 1,302,826 1,239,225
Average Investment Securities 503,555 496,901 492,190
Average Short-term Investments and CDs(1) 206,185 166,191 140,611
Average Earning Assets 2,221,236 1,965,918 1,872,026
Average Deposits 1,978,198 1,772,485 1,669,418
Average Other Borrowings 136,904 116,907 145,745
Average Shareholders' Equity 215,573 164,514 146,737
Asset Quality:
As of
March 31, December 31, September 30, June 30, March 31,
2026 2025 2025 2025 2025
Loan Risk Rating by Category (End of Period)
Special Mention $5,713 $5,186 $2,948 $2,506 $2,357
Substandard 4,009 1,306 1,314 1,323 1,333
Doubtful
Pass 1,539,421 1,304,527 1,275,048 1,256,226 1,248,290
Total Loans $1,549,143 $1,311,019 $1,279,310 $1,260,055 $1,251,980
Nonperforming Assets
Non-accrual Loans $311 $202 $205 $210 $215
Other Real Estate Owned and Repossessed Assets 168 168 194 194 437
Accruing Loans Past Due 90 Days or More 374 2 482 66 6
Total Nonperforming Assets $853 $372 $881 $470 $658
Three months ended
March 31, December 31, March 31,
2026 2025 2025
Loans Charged-off $2 $10
$ -
Overdrafts Charged-off 13 40 9
Loan Recoveries (6) (6) (14)
Overdraft Recoveries (4) (4) (6)
Net Charge-offs (Recoveries) $5 $40 $(11)
Net Charge-offs / (Recoveries) to Average Loans(2) 0.00 % 0.01 % (0.00 %)
(1) Includes federal funds sold and interest-
bearing deposits
(2)
Annualized
FIRST COMMUNITY CORPORATION
INCOME STATEMENT DATA
(Dollars in thousands, except per share data)
Three months ended
March 31, December 31, March 31,
2026 2025 2025
Interest income $28,039 $24,897 $23,082
Interest expense 9,670 8,583 8,692
Net interest income 18,369 16,314 14,390
Provision for (release of) credit losses 193 369 437
Net interest income after provision for (release of) credit losses 18,176 15,945 13,953
Non-interest income
Deposit service charges 223 234 221
Mortgage banking income 681 698 759
Investment advisory fees and non-deposit commissions 2,271 2,146 1,806
Government guaranteed lending income 395
Other non-recurring income 2
Other 1,220 1,208 1,196
Total non-interest income 4,790 4,288 3,982
Non-interest expense
Salaries and employee benefits 9,492 8,173 7,657
Occupancy 817 801 777
Equipment 379 395 390
Marketing and public relations 560 542 514
FDIC assessment 272 257 300
Other real estate expenses 4 4 12
Amortization of intangibles 96 40 39
Merger expenses 1,581 455
Other 3,830 3,160 3,065
Total non-interest expense 17,031 13,827 12,754
Income before taxes 5,935 6,406 5,181
Income tax expense 437 1,576 1,184
Net income $5,498 $4,830 $3,997
Per share data
Net income, basic $0.60 $0.63 $0.52
Net income, diluted $0.59 $0.62 $0.51
Average number of shares outstanding - basic 9,215,205 7,671,825 7,647,537
Average number of shares outstanding - diluted 9,344,816 7,786,731 7,767,978
Shares outstanding period end 9,397,960 7,693,215 7,681,601
Return on average assets 0.95 % 0.92 % 0.82 %
Return on average common equity 10.34 % 11.65 % 11.05 %
Return on average tangible common equity (non-GAAP) 12.16 % 12.81 % 12.31 %
Net interest margin (non taxable equivalent) 3.35 % 3.29 % 3.12 %
Net interest margin (taxable equivalent) 3.37 % 3.32 % 3.13 %
Efficiency ratio(1) 66.46 % 64.51 % 69.23 %
(1) Calculated by dividing non-interest expense less merger expenses by net interest income on tax equivalent basis and non interest income,
excluding other non-recurring income.
FIRST COMMUNITY CORPORATION
Yields on Average Earning Assets and
Rates on Average Interest-Bearing Liabilities
(Dollars in thousands)
Three months ended March 31, 2026 Three months ended March 31, 2025
Average Interest Yield/ Average Interest Yield/
Balance Earned/Paid Rate Balance Earned/Paid Rate
Assets
Earning assets
Loans $1,511,496 $22,129 5.94 % $1,239,225 $17,444 5.71 %
Non-taxable securities 42,981 324 3.06 % 46,986 342 2.95 %
Taxable securities 460,574 3,800 3.35 % 445,204 3,808 3.47 %
Int bearing deposits in other banks 205,972 1,784 3.51 % 140,548 1,487 4.29 %
Fed funds sold 213 2 3.81 % 63 1 6.44 %
Total earning assets 2,221,236 28,039 5.12 % 1,872,026 23,082 5.00 %
Cash and due from banks 28,395 24,632
Premises and equipment 29,885 29,874
Goodwill and other intangibles 32,279 15,063
Other assets 57,822 53,138
Allowance for credit losses - investments (19) (23)
Allowance for credit losses - loans (17,593) (13,217)
Total assets $2,352,005 $1,981,493
Liabilities
Interest-bearing liabilities
Interest-bearing transaction accounts $515,148 $2,226 1.75 % $331,897 $965 1.18 %
Money market accounts 493,628 3,551 2.92 % 440,282 3,319 3.06 %
Savings deposits 105,599 47 0.18 % 113,070 79 0.28 %
Time deposits 348,870 2,937 3.41 % 333,615 3,246 3.95 %
Fed funds purchased - NA 2 0.00 %
Securities sold under agreements to repurchase 121,940 664 2.21 % 130,779 814 2.52 %
FHLB Advances - NA NA
Other long-term debt 14,964 245 6.64 % 14,964 269 7.29 %
Total interest-bearing liabilities 1,600,149 9,670 2.45 % 1,364,609 8,692 2.58 %
Demand deposits 514,953 450,554
Allowance for credit losses - unfunded commitments 670 480
Other liabilities 20,660 19,113
Shareholders' equity 215,573 146,737
Total liabilities and shareholders' equity $2,352,005 $1,981,493
Cost of deposits, including demand deposits 1.80 % 1.85 %
Cost of funds, including demand deposits 1.85 % 1.94 %
Net interest spread 2.67 % 2.42 %
Net interest income/margin $18,369 3.35 % $14,390 3.12 %
Net interest income/margin (tax equivalent) $18,456 3.37 % $14,441 3.13 %
The tables below provide a reconciliation of non?GAAP measures to GAAP for the periods indicated:
September June March
March December 30, 30, 31,
31, 31,
Tangible book value per common share 2026 2025 2025 2025 2025
Tangible common equity per common share (non?GAAP) $
19.88 $
19.84 $
19.06 $
18.28 $
17.56
Effect to adjust for intangible assets 3.62 1.94 1.95 1.95 1.96
Book value per common share (GAAP) $
23.50 $
21.78 $
21.01 $
20.23 $
19.52
Tangible common shareholders' equity to tangible
assets
Tangible common equity to tangible assets (non?GAAP) 7.93 7.47 7.15 6.92 6.66
% %
% % %
Effect to adjust for intangible assets 1.30 0.67 0.67 0.68 0.69
% %
% % %
Common equity to assets (GAAP) 9.23 8.14 7.82 7.60 7.35
% %
% % %
Three months ended
March December March
31, 31, 31,
Return on average tangible common equity 2026 2025 2025
Return on average tangible common equity (non?GAAP) 12.16 % 12.81 % 12.31 %
Effect to adjust for intangible assets (1.82) % (1.16) % (1.26) %
Return on average common equity (GAAP) 10.34 % 11.65 % 11.05 %
Three months ended
March December March
31, 31, 31,
Pre-tax, pre-provision earnings 2026 2025 2025
Pre-tax, pre-provision earnings (non?GAAP) $
6,128 $
6,775 $
5,618
Effect to adjust for pre-tax, pre-provision earnings (630) (1,945) (1,621)
Net Income (GAAP) $
5,498 $
4,830 $
3,997
Three months ended
March December March
31, 31, 31,
Net income excluding the after-tax effect of merger expenses 2025 2025
2026
Net income excluding the after-tax effect of merger $
6,754 $
5,357 $
3,997
expenses (non?GAAP)
Effect to adjust for the after-tax effect of merger expenses (1,256) (527)
Net Income (GAAP) $
5,498 $
4,830 $
3,997
Three months ended
March December March
31, 31, 31,
Diluted earnings per common share excluding the after- 2025 2025
tax effect of merger expenses
2026
Diluted earnings per common share excluding the after-tax $
0.72 $
0.69 $
0.51
effect of merger expenses (non?GAAP)
Effect to adjust for the after-tax effect of merger expenses (0.13) (0.07)
Diluted earnings per common share (GAAP) $
0.59 $
0.62 $
0.51
Certain financial information presented above is determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). These non-GAAP financial measures include "Tangible book value per common share," "Tangible common shareholders' equity to tangible assets," "Return on average tangible common equity," "Pre-tax, pre-provision earnings," "Net income excluding the after-tax effect of merger expenses," "Diluted earnings per common share excluding the after-tax effect of merger expenses."
- "Tangible book value per common share" is defined as total equity reduced by recorded intangible assets divided by total common shares outstanding.
- "Tangible common shareholders' equity to tangible assets" is defined as total common equity reduced by recorded intangible assets divided by total assets reduced by recorded intangible assets.
- "Return on average tangible common equity" is defined as net income on an annualized basis divided by average total equity reduced by average recorded intangible assets.
- "Pre-tax, pre-provision earnings" is defined as net interest income plus non-interest income, reduced by non-interest expense.
- "Net income excluding the after-tax effect of merger expenses" is defined as net income plus merger expenses less income taxes on merger expenses. For purposes of our non?GAAP reconciliation, deductible merger expenses were tax?effected at our marginal tax rate of 23.84%, while non?deductible merger?related costs were tax?effected at 0%. The after?tax adjustment represents the combination of these two components.
- "Diluted earnings per common share excluding the after-tax effect of merger expenses" is defined as net income plus merger expenses, less income taxes on merger expenses, divided by the average number of diluted shares outstanding. For purposes of our non?GAAP reconciliation, deductible merger expenses were tax?effected at our marginal tax rate of 23.84%, while non?deductible merger?related costs were tax?effected at 0%. The after?tax adjustment represents the combination of these two components.
Our management believes that these non-GAAP measures are useful because they enhance the ability of investors and management to evaluate and compare our operating results from period-to-period in a meaningful manner. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results as reported under GAAP.
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SOURCE First Community Corporation
D. Shawn Jordan, Executive Vice President & Chief Financial Officer; Robin D. Brown, Executive Vice President & Chief Marketing Officer (803) 951-2265