First Community Corporation (FCCO) reported first‑quarter 2026 results that included a net income of $5.498 million and diluted earnings per share of $0.59. When merger expenses related to the January 8 acquisition of Signature Bank are excluded, net income rises to $6.754 million and EPS to $0.72, a 69% year‑over‑year increase in net income and a 41% rise in EPS. Revenue for the quarter was $23.16 million, falling $0.95 million—or 3.94%—short of the consensus estimate of $24.11 million, while the company’s EPS beat the $0.64 estimate by $0.08, a 12.5% over‑performance.
The net interest margin expanded to 3.37% on a tax‑equivalent basis, up five basis points from the fourth quarter of 2025 and 13 basis points from the first quarter of 2025. The margin growth reflects a higher mix of higher‑yield loans and a modest decline in the cost of funds, sustaining the eighth consecutive quarter of margin expansion. The company’s loan portfolio grew by $238.1 million to $1.549 billion, with $195.5 million attributable to the Signature Bank acquisition, while deposits increased by $298.7 million to $2.048 billion, including $229.8 million from the acquisition.
Capital ratios remained robust, with a Common Equity Tier I ratio of 12.80% and a total risk‑based capital ratio of 13.95% as of March 31, 2026. Credit quality remained stable, with net charge‑offs of $5 thousand and net loan recoveries of $4 thousand. The allowance for credit losses increased from 1.05% to 1.19% of loans, driven by a $2.4 million loan identified during due diligence. These figures demonstrate the company’s ability to maintain strong capital and liquidity positions amid expansion.
The company declared a quarterly cash dividend of $0.16 per share, payable on May 19, 2026 to shareholders of record as of May 5. Management guided for Q2 2026 revenue of approximately $25.23 million and EPS of $0.7446, while full‑year 2026 revenue guidance remains at $101.93 million with an EPS target of $2.97 million. The guidance signals confidence in continued revenue growth and profitability as the acquisition integration progresses.
President and CEO Michael C. Crapps said, "The combination of our banking companies continues our commitment as a community bank focused on local businesses, professionals, and entrepreneurs with the ability and financial strength to serve the banking needs of our communities and enhance shareholder value through operating advantages gained with the merger of our two institutions." The acquisition added $195.5 million in loans and $229.8 million in deposits, and the financial planning and investment advisory segment generated $2.271 million in revenue, underscoring the diversified revenue mix.
Market reaction to the earnings was positive, with the stock gaining roughly 6.6% after the announcement. Investors were rewarded for the strong EPS beat and the continued net interest margin expansion, which together signaled effective cost control and a favorable loan mix, outweighing the modest revenue miss.
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