Breaking Down First Community Corporation (FCCO) Financial Health: Key Insights for Investors

You're looking at First Community Corporation (FCCO) and, honestly, the numbers for the 2025 fiscal year are defintely worth a closer look, especially for a regional bank in this rate environment. The headline is clear: FCCO is expanding its margin and its footprint, reporting Q3 2025 net income of $5.192 million, a jump of 34.5% year-over-year, alongside a diluted earnings per share (EPS) of $0.67. Here's the quick math: that performance helped push net income for the first nine months of 2025 to $14.38 million. Plus, the net interest margin-a key measure of bank profitability-expanded for the sixth consecutive quarter, hitting 3.27%. But it's not just about the income statement; the balance sheet shows total assets of $2.1 billion as of September 30, 2025, and a record $1.103 billion in Assets Under Management (AUM). Now, the near-term opportunity centers on the pending acquisition of Signature Bank of Georgia, a strategic move to bolster their growth market, but we still need to map out the integration risks and the current bearish technical momentum that has the stock at a Zacks Rank #3 (Hold).

Revenue Analysis

You need to know where the money is coming from to truly understand First Community Corporation (FCCO)'s financial stability, and the Q3 2025 results give us a clear map. The direct takeaway is that the core business-lending-is strong, but the fee-based segments are providing a powerful, high-growth cushion. For the full fiscal year 2025, the consensus revenue expectation is a solid $78 million.

FCCO's revenue structure is typical for a community bank, relying heavily on net interest income (NII), which is the profit from lending money versus the cost of funding it. For the third quarter of 2025, the company reported total revenue of $20.46 million, which was a beat against analyst expectations. This performance reflects a robust year-over-year (YoY) revenue growth rate of 20.5% in Q3 2025, a significant jump that shows the company is defintely capitalizing on the current rate environment and loan demand. That's a strong growth signal in a competitive market.

Here's the quick math on the Q3 2025 revenue streams, which shows the primary drivers:

• Net Interest Income (NII): $15.99 million, contributing approximately 78.15% of total revenue.
• Total Non-Interest Income: $4.47 million, contributing approximately 21.85% of total revenue.

The story here isn't just the overall growth; it's the quality of the non-interest income. While NII is the backbone, the fee-generating businesses are showing impressive momentum and diversification, which is what you want to see for long-term stability.

The contribution of the different business segments highlights where FCCO is successfully diversifying its revenue base. The Investment Advisory line of business, which manages client assets, is a standout performer. Investment advisory revenue hit $1.862 million in Q3 2025, which marks a strong 16.7% increase year-over-year. This growth in assets under management (AUM) to a record $1.103 billion by September 30, 2025, provides a stable, recurring revenue stream less sensitive to interest rate volatility.

You also need to note a significant change in the revenue mix: the third quarter of 2025 included a small but notable $188 thousand in non-recurring revenue, with $176 thousand coming from a gain on a fintech fund investment. You should always strip out these one-off gains when modeling future performance. Also, the Mortgage line of business generated $934 thousand in fee revenue in Q3 2025, a modest but important segment that fluctuates with housing market activity. This granular look is crucial for any investor considering a deep dive into Breaking Down First Community Corporation (FCCO) Financial Health: Key Insights for Investors.

Here's the segment breakdown for Q3 2025, showing where the non-interest revenue is actually coming from:

The key action here is to monitor the net interest margin (NIM) and the Investment Advisory AUM growth; those are the two levers driving the company's value right now. The NIM expansion to 3.27% in Q3 2025, its sixth consecutive quarter of expansion, is the real leading indicator of NII strength.

Profitability Metrics

You want to know if First Community Corporation (FCCO) is truly making money and how efficiently, especially with the market volatility we've seen in 2025. The short answer is yes, they are, and their net profitability is defintely a bright spot, but you need to look closer at their operational efficiency to understand the full picture.

For a regional bank like FCCO, we swap the typical manufacturing terms for banking-specific metrics. Your 'Gross Profit Margin' is essentially the Net Interest Margin (NIM), and 'Operating Profit' is best gauged by the Efficiency Ratio. Here's the quick math on their core performance through the 2025 fiscal year.

Net Profitability and Margin Trends

FCCO's net income is surging, which is a clear positive. Year-to-date through September 30, 2025, the company reported net income of $14.375 million, a significant jump from the prior year [cite: 4, search 1]. This strong earnings power is reflected in a robust Net Profit Margin (NPM), which rose to 24% this year, up sharply from 18.4% previously [cite: 5, search 1].

This margin expansion is a high-quality signal. It means that for every dollar of revenue, FCCO is keeping 24 cents after all expenses, interest, and taxes are paid. The trend is clear: profits are accelerating, driven by strong operational discipline [cite: 5, search 1].

• Net Income YTD Q3 2025: $14.375 million [cite: 4, search 1].
• Net Profit Margin (NPM): 24% [cite: 5, search 1].
• Diluted EPS YTD Q3 2025: $1.85 [cite: 4, search 1].

Operational Efficiency: The Efficiency Ratio

Operational efficiency in banking is measured by the Efficiency Ratio-Non-Interest Expense divided by Net Interest Income plus Non-Interest Income. It tells you how much it costs the bank to generate one dollar of revenue. You want this number low. In the second quarter of 2025, FCCO's Efficiency Ratio improved to 66.04%. That's a good trend, but still a risk.

To be fair, a ratio of 66.04% is high when compared to the broader industry aggregate, which was around 56.4% in late 2024, or even peer regional banks that are hitting the mid-50s in 2025. This spread means FCCO is spending more on non-interest costs (like salaries and technology) per dollar of revenue than its peers. The recent merger approval with Signature Bank of Georgia, which was finalized in November 2025, will introduce integration costs, so watch for this ratio to temporarily tick up before the expected long-term efficiencies kick in [cite: 9, search 1].

Core Profitability: Net Interest Margin (NIM)

The Net Interest Margin (NIM)-the difference between interest earned on loans and paid on deposits-is the lifeblood of a community bank. FCCO has managed to expand its NIM for six consecutive quarters, a phenomenal streak in a volatile rate environment [cite: 4, search 1]. In Q3 2025, their NIM reached 3.27% [cite: 4, search 1].

Still, this 3.27% is below the typical range for smaller community banks, which often achieve margins between 3.5% and 4.5%. This suggests that while FCCO is managing its funding costs well (cost of deposits decreased in Q2 2025), they may have room to improve loan yields or further optimize their balance sheet to hit that higher margin range. This is an opportunity, not a flaw.

Here is a quick comparison of the key profitability and operational metrics:

The stock's Price-to-Earnings (P/E) ratio of 12.4x is lower than its direct peer average of 13.5x, suggesting the market hasn't fully priced in this recent profit surge [cite: 5, search 1]. For a deeper dive into who is buying and selling FCCO right now, check out Exploring First Community Corporation (FCCO) Investor Profile: Who's Buying and Why?

Next step: You should model the expected cost savings and revenue synergies from the Signature Bank of Georgia merger against the current 66.04% efficiency ratio to project a realistic 2026 efficiency target.

Debt vs. Equity Structure

You need a clear picture of how First Community Corporation (FCCO) is funding its operations, and the data shows a capital structure that leans more on equity than debt, though its leverage is slightly above the regional bank average. The key takeaway is that the company is managing its capital with a focus on returning value to shareholders through buybacks, which signals confidence in its balance sheet.

As of the most recent quarter in 2025, First Community Corporation's capital structure shows a Total Debt of approximately $117.02 million. While the exact split between short-term and long-term debt isn't explicitly detailed in the latest filings, this total debt figure is what we use to gauge overall financial leverage (the use of borrowed money to finance assets). For a bank, debt often includes things like Federal Home Loan Bank (FHLB) advances and subordinated notes, which are part of their funding mix, plus customer deposits, which are technically liabilities but are the core of a bank's business model.

To understand the risk, we look at the debt-to-equity ratio, which tells us how much debt the company is using for every dollar of shareholder funding. Using the most recent data, which shows a $7.5 million share repurchase plan representing approximately 4.6% of total shareholders' equity as of September 30, 2025, we can approximate the total equity at roughly $163.04 million. Here's the quick math: $7.5M / 0.046 \approx $163.04M.

This calculation gives us an approximate debt-to-equity (D/E) ratio of about 0.72 ($117.02M / $163.04M). This is a manageable level, but it is higher than the current industry benchmark. The average D/E ratio for US Regional Banks as of November 2025 sits around 0.5. So, while FCCO is not overly leveraged, it is employing slightly more debt relative to its equity base than its peers. Still, the core regulatory capital ratios for the bank, such as the Common Equity Tier One ratio of 13.04% as of June 30, 2025, comfortably exceed the required minimums, indicating a strong buffer against unexpected losses.

The company's capital management strategy in 2025 has focused less on new debt issuance and more on optimizing its equity side. Instead of recent debt issuances or refinancing, the board approved a $7.5 million share repurchase plan in October 2025, which is effective until May 2026. This action is a clear signal of the company's preference for equity funding and a commitment to returning capital to shareholders, which is defintely a positive sign for investors.

The balance between debt and equity for First Community Corporation is currently managed through a few key actions:

• Maintaining strong regulatory capital ratios well above minimums.
• Funding growth primarily through deposits and retained earnings.
• Utilizing a share repurchase authorization to manage the equity float.

This is a healthy, if slightly leveraged, position for a regional bank focused on loan and deposit growth, as detailed in our full analysis: Breaking Down First Community Corporation (FCCO) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You need to know if First Community Corporation (FCCO) can meet its short-term obligations and if its capital structure is sound. The quick answer is yes, the bank is liquid and well-capitalized, but you have to look past the usual corporate liquidity metrics to see it. For a bank, traditional current and quick ratios are defintely misleading.

If you look at the standard current ratio (Current Assets / Current Liabilities) or quick ratio (Quick Assets / Current Liabilities), you'll see numbers like 0.00 for FCCO as of June 30, 2025. Here's the quick math: a bank's largest assets are loans, which aren't considered 'current' in the typical sense, and its largest liabilities are customer deposits, which are technically payable on demand. So, the ratio is essentially meaningless for this industry. Instead, we look at the core funding and capital stability.

First Community Corporation's liquidity strength comes from its ample funding sources and strong capital buffers. The bank reported total deposits of $1.771 billion and total loans of $1.279 billion as of September 30, 2025, showing a healthy deposit-to-loan ratio. Plus, the bank has significant off-balance-sheet liquidity options:

• Federal funds purchased lines of credit totaling $77.5 million.
• Substantial borrowing capacity at the Federal Home Loan Bank (FHLB) of Atlanta.
• Short-term investments, primarily interest-bearing cash at the Federal Reserve Bank, were $151.3 million at June 30, 2025.

This kind of access to wholesale funding and cash reserves is the real measure of a bank's near-term stability. The bank's regulatory capital ratios-Leverage, Tier I Risk-Based, and Total Risk-Based-all exceed the well-capitalized minimums, with the Common Equity Tier I ratio at 13.10% as of September 30, 2025.

Analyzing the cash flow statement for the Trailing Twelve Months (TTM) ending September 30, 2025, shows a clear pattern of a growing bank that is funding its expansion from its deposit base and borrowing:

The large negative cash flow from investing activities-nearly $91.54 million TTM-is not a concern here; it's a sign of a bank putting its deposits to work by increasing its loan portfolio. Total loans grew by $19.3 million in the third quarter of 2025 alone. On the financing side, the Board approved a cash dividend of $0.16 per common share for Q3 2025, marking the 95th consecutive quarter of dividends, which is a strong sign of management confidence and consistent cash generation. They also approved a plan to repurchase up to $7.5 million of common stock.

What this estimate hides is the potential impact of the pending acquisition of Signature Bank of Georgia, which is expected to close early in the first quarter of 2026. That deal will shift the balance sheet and cash flows, but the current strength suggests the bank has the capacity to absorb the integration. For a deeper dive into the bank's long-term vision, you should review the Mission Statement, Vision, & Core Values of First Community Corporation (FCCO).

Valuation Analysis

You want to know if First Community Corporation (FCCO) is a buy, and based on its core valuation multiples for the 2025 fiscal year, the stock appears reasonably priced, leaning toward undervalued compared to its historical averages and the broader regional bank sector. The key takeaway is that the low Price-to-Earnings (P/E) ratio and a Price-to-Book (P/B) ratio slightly above one suggest a healthy, sustainable valuation for a growing bank.

When assessing a regional bank like First Community Corporation, the Price-to-Book (P/B) ratio is defintely the most critical metric, showing how the market values the bank's net assets (equity). As of November 2025, First Community Corporation trades at a P/B ratio of approximately 1.3x. This is a solid sign; it means the market is willing to pay 30% more than the book value of its assets, which is a vote of confidence in management and future earnings power. For context, a P/B of 1.0x is often considered fair value for a bank.

The Price-to-Earnings (P/E) ratio also signals value. The trailing twelve-month (TTM) P/E ratio sits at 11.58 as of November 2025, while the forward P/E is even lower at about 10.59. Here's the quick math: a P/E in the low teens is typically attractive for a stable financial institution, especially when compared to the broader market averages, which are often in the high teens or twenties. Since First Community Corporation is a bank, we typically don't rely on Enterprise Value-to-EBITDA (EV/EBITDA) as much, because Earnings Before Interest, Taxes, Depreciation, and Amortization isn't a standard metric for a bank's core business model.

Looking at the stock's trajectory, the price action over the last 12 months shows strong recovery and stability. The 52-week trading range for First Community Corporation has been between a low of $19.46 and a high of $29.55, with the stock recently closing around $28.44 as of late November 2025. This means the stock is trading near its 52-week high, indicating strong momentum and a successful navigation of the volatile interest rate environment over the past year. It's not a deep-value play, but it's a momentum stock with a value-oriented multiple.

The dividend profile is another strong point for income-focused investors. First Community Corporation pays an annualized dividend of $0.64 per share, which translates to a forward dividend yield of approximately 2.34%. Plus, the dividend is very safe. The forward payout ratio is a comfortable 25.17% of earnings, meaning the bank is retaining most of its profits to reinvest in growth while still offering a respectable yield. A low payout ratio like that gives them a lot of cushion against any economic headwinds.

Finally, Wall Street analysts are clearly bullish. The consensus rating on First Community Corporation is a 'Buy,' with some firms even rating it a 'Strong Buy' as of November 2025. The average 12-month price target is set at $29.67, which suggests a modest but achievable upside from the current price. This consensus signals that the street believes the bank's current valuation is sustainable and that its growth trajectory, including its recent acquisition activity, is on track. You can dive deeper into who is driving this optimism and why by Exploring First Community Corporation (FCCO) Investor Profile: Who's Buying and Why?

• Stock is trading near its 52-week high of $29.55.
• Dividend yield of 2.34% is well-covered by a low 25.17% payout ratio.
• Analyst consensus is a 'Buy' with a $29.67 average price target.

Risk Factors

You're looking at First Community Corporation (FCCO) and seeing strong 2025 performance-Net Income was up 47.8% year-to-date through Q3 to $14.375 million, and Non-Performing Assets (NPAs) were a remarkably low 0.04% as of September 30, 2025. That's excellent credit quality. But, as with any community bank, a few key risks deserve your attention, especially those tied to the regional economy and the balance sheet structure. You need to map these risks to their potential impact.

The biggest near-term risk is the bank's concentration in commercial real estate (CRE). This is a common feature for regional banks, but it makes FCCO highly susceptible to market shifts. A significant portion of the loan portfolio is secured by CRE, which exposes the bank to both market risk and economic downturns in their core South Carolina and Georgia markets. Also, persistent regional economic uncertainty, driven by inflation and subdued consumer spending, directly impacts the quality of that loan portfolio. Honestly, a sharp correction in the CRE market is the single biggest external threat here.

Operationally and strategically, the risks are clear, though the bank has strong capital to manage them. On the financial side, interest rate risk is always present, but FCCO has taken action. They entered into a Pay-Fixed Swap Agreement to hedge against interest rate fluctuations, effectively converting some fixed-rate loans to a synthetic floating rate. That's a smart move to protect the Net Interest Margin (NIM), which was already a healthy 3.27% in Q3 2025.

The strategic risks revolve around growth and compliance. The planned acquisition of Signature Bank of Georgia is a clear growth driver, expected to be accretive to earnings next year and expand their footprint into the Atlanta metro area. But integration is defintely a risk-combining systems and cultures can be tricky, and it's something to monitor closely. Plus, the regulatory environment is constantly tightening, requiring increased compliance spending on things like cybersecurity and data privacy.

Here's a quick summary of the key risks and the bank's actions to mitigate them:

• Commercial Real Estate (CRE) Exposure: The bank maintains a robust allowance for credit losses (ACL) to absorb potential future credit risks.
• Interest Rate Volatility: Mitigation includes using a Pay-Fixed Swap Agreement to manage the fixed-rate loan portfolio.
• Operational/Cybersecurity: The bank is focused on maintaining a strong risk management culture and investing in digital banking products, with online enrollment increasing 15.45% year-over-year.
• Strategic Growth/Integration: The acquisition of Signature Bank of Georgia is the core strategy for expansion and deposit growth.

The bank's capital position provides a solid buffer. As of September 30, 2025, the bank's Common Equity Tier I ratio was 13.10%, well above the regulatory 'well capitalized' minimums. This financial strength gives them room to maneuver if any of these risks materialize. For a deeper dive into the bank's valuation, you can check out Breaking Down First Community Corporation (FCCO) Financial Health: Key Insights for Investors.

To put the core financial risk metrics into perspective, compare the bank's current strength against its exposure:

Your action item is to track the CRE market health in South Carolina and Georgia, and monitor the integration updates for the Signature Bank of Georgia deal. That's where the near-term volatility will come from.

Growth Opportunities

You're looking for a clear path forward for First Community Corporation (FCCO), and the near-term picture is largely defined by one major strategic move: geographic expansion. The company's growth prospects for 2025 are defintely grounded in solid organic performance, plus the accretive impact of a key acquisition that opens up a significant new market.

The core business is showing real momentum. For the full fiscal year 2025, the consensus analyst estimate for total revenue sits at approximately $77.79 million. That's a healthy top-line projection. Here's the quick math on profitability: the estimated diluted Earnings Per Share (EPS) for 2025 is expected to be around $2.48 per share. To be fair, this is a community bank, so growth is often incremental, but those numbers show a strong, stable trajectory.

Strategic Expansion and Key Growth Drivers

The biggest near-term opportunity for First Community Corporation is the strategic acquisition of Signature Bank of Georgia, which was announced in July 2025. This acquisition is a direct market expansion play, giving First Community Corporation access to the high-growth Metro Atlanta-Sandy Springs-Roswell, GA MSA (Metropolitan Statistical Area). This move immediately boosts their scale and provides a platform to replicate their successful community banking model in a much larger market.

Beyond the acquisition, the organic growth drivers are clear and measurable:

• Deposit Growth: Total deposits were growing at a solid 6.6% annualized rate in the second quarter of 2025.
• Loan Growth: The loan portfolio saw an annualized growth rate of 6.5% as of June 30, 2025.
• Fee Income Expansion: Assets Under Management (AUM) in the Investment Advisory and Non-Deposit segments crossed the $1 billion mark for the first time in Q2 2025.

This shows they aren't just relying on their traditional lending business; they are successfully growing their fee-based services, which is a key to diversifying revenue for regional banks. The Mortgage line of business also had a record production of $62.9 million in the second quarter of 2025. That's a clean one-liner for their fee income efforts.

Competitive Edge and Risk Mitigation

First Community Corporation's competitive advantage is less about flashy product innovations and more about operational excellence and a strong deposit franchise. They maintain what I would call a fortress balance sheet, which is crucial in the current rate environment. Their credit quality is excellent, with non-performing assets at just 0.02% as of June 30, 2025. This low figure shows strong underwriting discipline, which translates directly to greater earnings durability.

The table below summarizes the core financial health metrics that underpin their growth narrative:

What this estimate hides is the potential for integration challenges with the new acquisition, but the move gives them access to the eighth-largest MSA in the US, providing significant new opportunities. For a deeper dive into who is already invested and why, you should read Exploring First Community Corporation (FCCO) Investor Profile: Who's Buying and Why?

Next step: Operations should model the full 2026 synergy realization from the Signature Bank of Georgia acquisition by the end of the quarter.