#United States #Cash Dividend #growth #First Community #Lexington, South Carolina

First Community Corporation Reports Record Earnings in Q2 2025

First Community Corporation (NASDAQ: FCCO), the parent company of First Community Bank, proudly announced its financial results for the second quarter of 2025, showcasing remarkable growth and strong operational performance.

Financial Highlights

In Q2 2025, First Community Corporation posted a net income of $5.186 million, reflecting a solid 29.7% increase from the previous quarter and an impressive 58.8% rise compared to the second quarter of 2024. Furthermore, the company recorded diluted earnings per share (EPS) of $0.67, boasting a 31.4% quarter-over-quarter increase and a 59.5% increase year-over-year.

Total net income for the first half of 2025 reached $9.183 million, up by 56.7%, with diluted EPS at $1.18 for the six-month period, compared to $0.76 in the same time frame last year.

Key Operational Metrics

The net interest margin on a tax-equivalent basis improved to 3.21% for Q2, showing an expansion of eight basis points from the prior quarter. This strength translated into a substantial increase in assets under management, surpassing the $1 billion mark for the first time to reach $1.011 billion. Investment advisory revenue for the quarter was reported at $1.751 million.

Mortgage production also set a record, totaling $62.9 million for the quarter, accompanied by fee revenue amounting to $879,000. Total loans increased by $8.1 million, indicating a consistent annualized growth rate of 2.6%, while deposits grew to $1.754 billion with a customer deposit growth rate of 6.6%.

Dividend Increase

Additionally, the Board of Directors declared a cash dividend of $0.16 per share, marking the 94th consecutive quarter of dividend payments, emphasizing the company’s commitment to returning value to its shareholders. This dividend will be payable to shareholders of record on August 5, 2025, and distributed on August 19, 2025. CEO Mike Crapps stated, “Our entire board is pleased that our performance enables the company to continue its cash dividend for the 94th consecutive quarter.”

Strategic Share Repurchase Plan

In mid-May 2025, the company authorized a share repurchase plan of up to $7.5 million, representing approximately 5.0% of its total shareholders' equity as of March 31, 2025. This program aims to enhance shareholder value, indicating a proactive capital management approach going forward.

Expansion Plans

In alignment with its growth strategy, First Community Corporation announced an agreement to acquire Signature Bank of Georgia. This acquisition is anticipated to bolster its presence in the Atlanta area and expand its service offerings, particularly in the area of SBA lending. Crapps noted, “This expansion into a new market and the addition of a new line of business are two key initiatives that we have been diligently working toward.” The completion of this acquisition is expected in early 2026.

Conclusion

First Community Corporation's strong financial performance in Q2 2025 clearly positions the bank for continued growth and expansion. With a healthy increase in income, assets, and shareholder returns, the bank’s trajectory looks promising as it prepares to navigate the evolving market landscape. The strategic expansion into new territories and continued focus on delivering shareholder value will be key components of its ongoing success as it moves forward.