First Community earnings rise to $0.85 per share as net interest margin expands
Key Facts
First Community Corporation, listed under the ticker FCCO, reported net income of $8.044 million and diluted earnings of $0.85 per share in the third quarter of 2026. The company said in a statement via PR Newswire that net income rose from $5.192 million in the same period last year and from $7.595 million in the second quarter. Diluted earnings per share also increased from $0.67 a year earlier and $0.80 in the previous quarter. The comparison reflects improvement in results year over year and quarter over quarter, as net interest income rose and lending grew. The quarter’s key indicators centered on a wider interest margin and loan growth, alongside the asset-quality levels reported by the company.
Net interest income was $20.238 million in the third quarter, compared with $19.501 million in the second quarter and $15.994 million a year earlier. Net interest margin, on a tax-equivalent basis, rose to 3.59% from 3.51% in the previous quarter and 3.27% in the third quarter of 2025. The company said this marked the tenth consecutive quarter of margin expansion. It attributed the improvement to a higher yield and growth in its loan portfolio, which resulted in a better mix of earning assets. It added that the cost of deposits and the cost of funds remained unchanged as the margin widened.
Total loans were $1.610 billion as of September 30, 2026, after increasing by $32.1 million during the quarter, equivalent to an annualized growth rate of 8.1%. In the first nine months of the year, organic loan growth was $103.7 million, at an annualized rate of 10.6%, excluding initial acquisition balances. The company said year-to-date loan growth included $195.7 million related to its acquisition of Signature Bank of Georgia. The acquisition closed on January 8, 2026, and its impact is therefore included in the company’s reported results. Separating organic growth from acquisition-related balances provides a clearer view of the sources of loan portfolio growth during the period.
Noninterest income was $5.988 million in the third quarter, compared with $5.637 million in the second quarter and $4.469 million a year earlier, increases of 6.2% and 34.0%, respectively. The figure included $797,000 in nonrecurring income from the settlement of a loan under the U.S. Small Business Administration program. The loan had been charged off before the company acquired Signature Bank of Georgia. In financial planning and investment advisory activity, revenue was $2.605 million, up from $1.862 million in the same period last year, after reaching $2.286 million in the second quarter. Assets under management stood at $1.404 billion at the end of September, compared with $1.378 billion at the end of June and $1.103 billion a year earlier.
The credit-quality indicators reported by the company showed net loan charge-offs of $9,000 during the quarter, including overdrafts. Nonperforming assets were 0.04% of assets, while past-due loans stood at 0.27% as of September 30. On capital, the ratio of shareholders’ equity to total assets reached 9.74%, compared with 7.82% on the same date last year. The ratio of tangible common equity to tangible assets was 8.50%, versus 7.15% a year earlier. These figures provide a view of the company’s credit and financial position alongside earnings and lending growth.
The board approved a third-quarter cash dividend of $0.17 per common share. The dividend will be paid on November 17, 2026, to shareholders of record on November 3. The share repurchase plan announced by the company on May 7 also authorizes the use of up to $7.5 million for repurchases through May 7, 2027. The company said it did not repurchase shares during the third quarter. In trading data available to EL7, FCCO shares closed at $33 on October 26, 2026.