First Community Corporation (FCCO): Business Model Canvas [Dec-2025 Updated]

You're digging into First Community Corporation, and honestly, their business model isn't some wild startup concept; it's a classic, relationship-focused community bank, but with a defintely strategic pivot toward growth markets like Atlanta via acquisition. They are balancing a solid foundation-a deposit franchise of $1.726 billion in Q1 2025 and Net Interest Income of $15.994 million in Q3 2025-with a clear push into higher-margin services, evidenced by their $1.103 billion in Assets Under Management. I've mapped out the nine core blocks for you below, showing exactly how First Community Corporation is using local trust and M&A to build out its Southeast footprint; you'll see the precise levers they are pulling to keep that engine running.

First Community Corporation (FCCO) - Canvas Business Model: Key Partnerships

You're looking at the relationships First Community Corporation (FCCO) relies on to operate and grow, especially as it integrates the planned acquisition of Signature Bank of Georgia. These partnerships are crucial for market access, liquidity, and technology backbone.

Signature Bank of Georgia (Acquisition Target)

The definitive merger agreement, signed July 14, 2025, positions Signature Bank of Georgia as a key strategic partner to immediately expand FCCO's footprint into the Atlanta-Sandy Springs-Roswell, Georgia MSA. This is an all-stock transaction with a stated current value of approximately $41.6 million, based on FCCO's closing share price of $24.84 as of July 11, 2025. The deal is expected to close early in the first quarter of 2026. This move is designed to be accretive to First Community Corporation's earnings per share by nearly 4.4% in 2026, the first year of combined operations. Also, the pro forma Tangible Common Equity to Tangible Assets (TCE/TA) ratio is projected to improve by about 35 basis points, landing at 7.45%. Signature Bank of Georgia brings specialized lending capabilities, particularly in SBA, which will significantly enhance the combined entity's service offerings across all markets. Upon closing, Signature Chairman and CEO Freddie J. Deutsch will join First Community Bank as Regional Market President and Director of Specialty Business Lending.

Here are the key projected financial metrics for the combined entity post-merger:

Government Agencies for Guaranteed Loan Programs

Government agencies, most notably the Small Business Administration (SBA), are vital partners, especially given the specialized lending focus inherited from the Signature Bank of Georgia agreement. Signature Bank of Georgia was noted as a preferred SBA lender, and its Q2 2025 net interest margin of 4.63% was supported by its variable-priced SBA loan portfolio. The broader SBA lending environment in 2025 shows sustained high activity, which First Community Corporation will participate in.

• SBA 7(a) approvals for Q2 FY2025 (January through March 2025) exceeded $10 billion.
• Q1 FY2025 7(a) approvals were $8.73 billion, a 38 percent increase year-over-year.
• In early FY2025, more than half of all 7(a) loans were under $150,000.
• The SBA's SOP 50 10 8, effective June 1, 2025, lowered the 7(a) small-loan limit to $350,000.

Correspondent Banking Institutions

First Community Corporation utilizes correspondent banking institutions to help manage liquidity needs and access services outside its immediate operational footprint. While specific names of correspondent banks are not publicly detailed in recent filings, this relationship is standard for community banks to ensure broad service capabilities and balance sheet management.

Third-Party Vendors for Core Banking and Digital Technology

Technology partners provide the necessary infrastructure for modern banking operations. First Community Bank has already established a relationship with a major digital provider to enhance customer experience. For instance, the bank implemented Alkami's Credit Card Origination System (CCOS) to replace an inefficient, manual review process that previously took hours to days to complete for online credit card applications. Alkami is a leading cloud-based digital banking solutions provider.

First Community Corporation (FCCO) - Canvas Business Model: Key Activities

You're looking at the core engine of First Community Corporation (FCCO) as of late 2025, focusing on what they actually do day-to-day to generate revenue and manage the balance sheet. It's all about credit, funding, and strategic growth, defintely.

Commercial and retail loan origination and servicing is the primary credit-generating activity. This involves actively putting capital to work through new lending and managing the existing book. For instance, total loans grew by $19.3 million in the third quarter of 2025, which is a 6.1% annualized growth rate for that period. Year-to-date through September 30, 2025, total loans were up $58.8 million, representing a 6.4% annualized growth rate. The mortgage line of business, a key component, saw total production of $51.6 million in Q3 2025, bringing in fee revenue of $934 thousand.

The next critical activity is deposit gathering and liability management, which fuels the lending engine. You need cheap, stable funding to make loans profitable. The prompt specifies that the cost of deposits was 1.81% in Q3 2025. At the end of Q3 2025 (September 30, 2025), total deposits stood at $1.771 billion. Customer deposits, which exclude brokered Certificates of Deposit (CDs), increased by $27.6 million during that quarter, showing a 6.3% annualized growth rate. The net interest margin (NIM) on a tax-equivalent basis reflected this management success, expanding to 3.27% in Q3 2025, marking the sixth consecutive quarter of margin expansion.

Here's a quick look at the scale of deposit and loan activity around the end of Q3 2025:

Managing the wealth division is also a core function, evidenced by managing Assets Under Management (AUM). As of September 30, 2025, First Community Corporation managed a record $1.103 billion in AUM. This represented a 19.1% increase year-to-date. This activity generated investment advisory revenue of $1.862 million in the third quarter.

Underpinning all operations is regulatory compliance and risk management. This is non-negotiable for a bank holding company. Credit quality metrics were excellent as of mid-year; non-performing assets stood at 0.02% and past due loans were also 0.02% at June 30, 2025. The firm maintained a specific buffer against potential losses, with the allowance for credit losses on loans at $13.5 million as of September 30, 2025. Furthermore, as of Q1 2025, all regulatory capital ratios were reported as exceeding the well-capitalized minimum levels.

Finally, strategic expansion via M&A is a key activity driving future scale. The most significant move is the planned acquisition of Signature Bank of Georgia (SGBG), announced July 14, 2025.

• Transaction value was approximately $41.6 million (all-stock) based on July 11, 2025 pricing.
• The deal is expected to close early in the first quarter of 2026.
• Pro forma, the combined entity is projected to hold approximately $2.3 billion in total assets and $2.0 billion in total deposits.
• This expands the footprint to a 23-office company, adding the dynamic Atlanta-Sandy Springs-Roswell, GA MSA to the existing South Carolina and Augusta, GA presence.
• The merger is projected to be accretive to earnings per share by approximately 4.4% in 2026.

Finance: draft 13-week cash view by Friday.

First Community Corporation (FCCO) - Canvas Business Model: Key Resources

You're looking at the core assets First Community Corporation (FCCO) relies on to deliver its value proposition. These aren't just line items; they are the engines of the business.

Capital Strength and Regulatory Standing

A strong capital base is non-negotiable for a bank, and First Community Corporation shows solid positioning. The Tangible Common Equity to Tangible Assets ratio (TCE ratio) stood at 6.92% as of June 30, 2025. This is an improvement from 6.66% at March 31, 2025, and 6.47% at June 30, 2024. The bank's regulatory capital ratios were also strong at June 30, 2025, with the Common Equity Tier I ratio at 13.04%. The planned acquisition of Signature Bank of Georgia is projected to further enhance this, resulting in a pro forma TCE/TA ratio of approximately 7.45% upon closing in early 2026. That's a clear signal of capital adequacy.

The key regulatory and capital metrics as of mid-2025 are laid out here:

Physical Footprint and Geographic Reach

The physical presence is critical for a community bank serving local markets. As of late 2025, before the expected merger close, First Community Bank operates 22 full-service banking offices. These offices are strategically located across South Carolina and Georgia. The planned merger with Signature Bank of Georgia will expand this to a combined 23-office company, adding the dynamic Atlanta-Sandy Springs-Roswell, GA MSA to its footprint. The current footprint covers the Midlands, Aiken, Upstate, and Piedmont Regions of South Carolina, plus the Augusta, Georgia area. It's about being where the customers are.

Human Capital and Leadership

The quality of the people managing relationships and strategy is a core resource. While specific manager counts aren't always public, the overall employee base supports the operations. As of December 31, 2024, the team included:

• 260 full-time employees
• 10 part-time employees
• Eight seasonal/on-call employees

The executive team, noted for its experience, is central to maintaining the local relationship focus, which is further enhanced by welcoming the 'talented leadership team' from Signature Bank of Georgia upon merger completion.

Deposit Franchise Quality

The deposit base is the lifeblood of any bank, providing low-cost funding. The total deposit franchise size at June 30, 2025, was $1.754 billion. This is up from the $1.726 billion reported at March 31, 2025 (Q1 2025). The quality of this funding source is highlighted by the customer deposits (excluding brokered CDs), which stood at $1.744 billion on June 30, 2025. Customer deposit growth year-to-date through June 30, 2025, was $78.1 million, representing a 9.5% annualized growth rate. That's defintely a strong indicator of customer trust.

First Community Corporation (FCCO) - Canvas Business Model: Value Propositions

You're looking at what First Community Corporation (FCCO) offers customers that makes them choose the bank over competitors, based on their late 2025 positioning. It's about local connection backed by solid, growing numbers.

Relationship-focused, local decision-making for businesses

The core value here is speed and local knowledge. You get decisions made close to home, not by a committee miles away. Management explicitly highlighted a focus on relationship accounts over chasing the lowest-cost, price-sensitive Certificates of Deposit (CDs), underscoring the value placed on the deposit franchise itself. This focus supports local business relationships.

• Management emphasized focus on relationship accounts over price-sensitive CDs.
• The bank operates with 21 banking offices as of September 30, 2025.

Full-service financial suite: banking, mortgage, and investment advisory

First Community Corporation (FCCO) provides a comprehensive set of financial tools under one roof, which simplifies financial management for clients. The performance across these segments in Q3 2025 shows real traction, especially in wealth management and core banking profitability.

Here's a quick look at the key financial outputs from the three main service lines for the third quarter of 2025:

The bank's overall loan portfolio showed growth, with total loans increasing by $19.3 million in Q3 2025, representing a 6.1% annualized growth rate. Total deposits stood at $1.77 billion at the end of September 2025.

Stability and trust from a long-standing community bank presence

Trust is built over time, and FCCO leans into its history as a community fixture. They are recognized as the largest community bank in the South Carolina Midlands and the fifth largest in the state as of September 30, 2025. A concrete measure of commitment to shareholders is their dividend history.

• Recognized as the fifth largest community bank in South Carolina as of September 30, 2025.
• Reported its 95th consecutive quarter of paying a cash dividend to common shareholders.
• Tangible book value per share increased to $19.06 as of Q3 2025.

Specialized lending capabilities, including planned SBA/GGL expansion

While organic loan growth was solid at 6.1% annualized in Q3 2025, a key strategic value proposition involves expanding into specialized, government-guaranteed lending. First Community Corporation announced plans to acquire Signature Bank of Georgia, which is specifically intended to bring an SBA (Small Business Administration) and GGL (Government Guaranteed Lending) line of business into the fold. The financial closing for this acquisition is anticipated in early Q1 2026, signaling a near-term enhancement to their specialized lending value proposition.

The total loans held-for-investment on the balance sheet were $1.28 billion at September 30, 2025.

Finance: draft the pro-forma impact of the Signature Bank of Georgia acquisition on the Q4 2025 loan pipeline by next Wednesday.

First Community Corporation (FCCO) - Canvas Business Model: Customer Relationships

You're looking at how First Community Corporation (FCCO) manages its connections with its various client groups. It's a mix of local presence and digital tools, which makes sense for a community bank focused on small-to-medium businesses and individuals.

Dedicated relationship managers for commercial and professional clients

First Community Bank serves small-to-medium sized businesses and professional concerns, which typically rely on direct, dedicated service. While the exact count of dedicated relationship managers isn't public, the focus on this segment is reflected in the overall deposit base growth.

• Customer deposits (excluding brokered CDs) stood at $1.744 billion as of September 30, 2025.
• Total deposits reached $1.771 billion at September 30, 2025.
• Customer deposit growth year-to-date through September 30, 2025, was an annualized rate of 7.6%.

Personal, in-branch service at 21 physical locations

The physical footprint supports the personal service model. You can still walk into one of their locations for face-to-face interaction. This is the core of their community banking approach.

• First Community Bank operates 21 full-service offices across South Carolina and Georgia as of the last reported data.

Automated self-service via online and mobile banking platforms

The bank supports its relationship model with digital tools for convenience. These platforms handle routine transactions so the relationship managers can focus on more complex needs.

• Digital capabilities include online account access, bill payment, and mobile deposit.

High-touch advisory service for wealth management clients

The Investment Advisory division, First Community Financial Consultants, provides the high-touch service for clients needing financial planning and investment direction. This segment has shown significant growth in assets managed.

Here are the key financial metrics for this relationship channel as of mid-2025:

That AUM figure crossing the $1 billion mark in the second quarter of 2025 is a clear indicator of client trust in that advisory relationship.

First Community Corporation (FCCO) - Canvas Business Model: Channels

You're looking at how First Community Corporation (FCCO) gets its value proposition to the customer base right now, as of late 2025. It's a mix of traditional brick-and-mortar presence and modern digital tools, plus specialized sales teams for bigger deals.

The physical footprint remains central to the community banking model. As of September 30, 2025, First Community Bank operates with 21 full-service banking offices across its established markets. These offices serve customers across the Midlands, Aiken, Upstate, and Piedmont Regions of South Carolina, along with the Augusta region of Georgia. This network is set to grow, as the announced acquisition of Signature Bank of Georgia is expected to create a 23-office banking company upon closing, anticipated early in the first quarter of 2026.

For customers who prefer banking outside of branch hours, the digital channels are key. First Community Corporation supports its clients with:

• Mobile app access.
• Online account access.
• Bill payment functionality.
• Mobile deposit capabilities.

The direct sales force is critical for driving the higher-value lending and advisory services. This includes dedicated teams for commercial and mortgage lending, which is a significant revenue driver. For instance, the mortgage line of business posted a record total production of $62.9 million during the second quarter of 2025.

The investment advisory division, First Community Financial Consultants, is showing strong growth, which is a key indicator of channel success in wealth management. Here's a quick look at the financial performance metrics tied to this channel as of mid-to-late 2025:

These numbers show that the advisory channel is successfully attracting and retaining assets, crossing the $1 billion threshold for the first time. The direct sales force for commercial banking and mortgage lending works alongside these advisory services to provide comprehensive financial solutions to local businesses and professionals.

The delivery of services through these channels can be summarized by the core offerings:

• Relationship management through the 21 physical offices.
• Digital self-service via mobile and online portals.
• Specialized sales execution for commercial loans and residential mortgages.
• Fee-based revenue generation from the investment advisory arm.

Finance: draft 13-week cash view by Friday.

First Community Corporation (FCCO) - Canvas Business Model: Customer Segments

You're mapping out the core groups First Community Corporation (FCCO) serves. This isn't just a list; it's about where the money and the relationships are concentrated as of late 2025.

Small-to-medium sized businesses (SMEs) in the Southeast US

First Community Bank focuses its commercial and retail banking segment on businesses and individuals across specific regions. The service area includes the Midlands, Aiken, Upstate and Piedmont Regions of South Carolina, along with Augusta, Georgia. This regional focus is key for understanding the SME segment.

• The commercial banking segment provides deposit and lending products to commercial customers.
• Loan growth was a focus, with total loans increasing by $19.3 million in the third quarter of 2025.
• Loan production was up 93% over the same period in 2024 during the first quarter of 2025.

Professionals and high-net-worth individuals

This group is directly served by the Investment Advisory and Non-Deposit segment, which offers financial planning and investment advisory services. This segment is showing significant scale.

• Assets Under Management (AUM) reached a record $1.103 billion at September 30, 2025.
• Investment advisory revenue for the third quarter of 2025 was $1.862 million.
• AUM had increased by 19.1% year-to-date through September 30, 2025.

Retail consumers seeking traditional deposit and loan products

The retail side of the commercial and retail banking segment captures the everyday banking needs of individuals. The focus here is on building a stable, relationship-based funding base.

• Total deposits stood at $1.771 billion as of September 30, 2025.
• Customer deposits, defined as total deposits excluding brokered CDs, were $1.462 billion at the end of the third quarter of 2025.
• The bank reported a strong shift toward relationship-based accounts, with pure deposits (total deposits less certificates of deposit) growing by $24.9 million in the third quarter of 2025.

Real estate developers and investors

This segment is primarily addressed through the Mortgage Banking segment, which handles mortgage origination services for loans sold to secondary market investors, as well as consumer mortgage loans held for investment. Commercial real estate concentration is a noted area of focus for lending activity.

• Mortgage line of business total production for the third quarter of 2025 was $51.6 million.
• Mortgage line of business fee revenue in the first quarter of 2025 was $759 thousand.
• The overall loan portfolio yield increased to 5.84% in the third quarter of 2025.

Here's the quick math on the scale of the business supporting these segments as of the third quarter of 2025.

Finance: draft 13-week cash view by Friday.

First Community Corporation (FCCO) - Canvas Business Model: Cost Structure

You're looking at the expenses First Community Corporation (FCCO) is managing to deliver its services as of late 2025. For a bank holding company, the cost structure is heavily weighted toward personnel, funding costs, and the physical/digital infrastructure needed to operate.

The overall non-interest expense for the third quarter of 2025 was reported at $13.674 million. This figure was up from $13.083 million in the second quarter of 2025.

A significant driver of the quarter-over-quarter increase in non-interest expense was strategic activity and marketing spend. Specifically, merger-related expenses accounted for $341 thousand of the increase. Also, marketing expense was $349 thousand higher on a linked quarter basis due to a planned, more extensive media schedule during the period.

Personnel expenses, which include salaries and benefits, are a major component of the overall cost base. For the second quarter of 2025, salaries and benefits expense had already increased by $403 thousand on a linked quarter basis, driven by higher variable compensation in mortgage and financial planning, higher incentive accruals, and the full quarter impact of annual increases for exempt employees effective March 1, 2025. While the exact Q3 2025 personnel expense isn't isolated, this trend suggests continued upward pressure on this line item.

Interest expense on deposits and borrowings is reflected in the cost of funds. For the third quarter of 2025, the cost of deposits was 1.81%, an improvement from 1.82% in the second quarter of 2025. The cost of funds was 1.89% in Q3 2025, down from 1.91% in Q2 2025. This indicates that despite a rising rate environment, First Community Corporation (FCCO) managed its funding costs slightly lower sequentially, supporting the net interest margin expansion.

The physical footprint supporting the business includes 21 banking offices across the Midlands, Aiken, Upstate, and Piedmont Regions of South Carolina, as well as Augusta, Georgia. Occupancy and equipment costs are embedded within the total non-interest expense, but specific figures for this category aren't itemized separately in the latest reports. The total assets managed by First Community Corporation (FCCO) stood at $2.07 billion as of September 30, 2025.

Regulatory compliance and technology maintenance costs are necessary operational expenditures for a bank holding company. These are included in the total non-interest expense figure of $13.674 million for Q3 2025. The bank is also incurring merger-related expenses associated with the pending acquisition of Signature Bank of Georgia.

Here's a quick look at key cost-related metrics from the third quarter of 2025:

You can see the breakdown of the non-interest expense components that make up the total for Q3 2025:

• Total Non-Interest Expense: $13.674 million
• Merger Related Expenses: Included in the total, contributing to an increase of $341 thousand linked quarter.
• Marketing Expense: Increased by $349 thousand linked quarter.
• Personnel Expenses: A major component, with Q2 2025 seeing a $403 thousand linked quarter increase in salaries and benefits.
• Occupancy/Equipment/Technology/Compliance: Included in the remainder of the non-interest expense after accounting for merger and marketing costs.

Finance: draft 13-week cash view by Friday.

First Community Corporation (FCCO) - Canvas Business Model: Revenue Streams

You're looking at how First Community Corporation (FCCO) brings in its money as of late 2025. The core of their revenue, like most banks, comes from the spread between what they earn on assets and what they pay for liabilities, but fee income is a growing part of the story.

The primary driver remains the Net Interest Income (NII). For the third quarter of 2025, this figure stood at \$15.994 million. This reflects a strong operating momentum, supported by a Tax Equivalent Net Interest Margin (NIM) that expanded for the sixth consecutive quarter, reaching 3.27%.

Non-interest income provides important diversification. Total non-interest income for Q3 2025 was \$4.469 million, which was a 6.3% increase quarter-over-quarter. This total is composed of several key components, which we can detail below.

Here's a breakdown of the key revenue components for First Community Corporation in Q3 2025:

The investment advisory business is showing clear growth, with Assets Under Management (AUM) hitting a record \$1.103 billion as of September 30, 2025. This AUM growth directly supported the \$1.862 million in revenue from that line of business.

For the mortgage operations, the fee revenue was \$934 thousand, generated from total production of \$51.6 million in loans during the quarter, carrying a 2.91% gain-on-sale margin.

The remaining components of non-interest income include:

• Service charges on deposit accounts.
• Gains on sale of loans and investment securities (partially represented by the mortgage gain-on-sale margin).
• A reported \$188 thousand non-recurring item within the total non-interest income figure.

The company's focus on its deposit franchise is key to supporting the NII engine. Total deposits grew by \$17.1 million in the quarter, with 'pure deposits' (total deposits excluding brokered CDs) increasing by \$24.9 million.

Finance: draft 13-week cash view by Friday.