First Community (FCCO) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 rose to $5.2M ($0.67 diluted EPS), up 59% year-over-year and 29.7% sequentially, driven by higher net interest income, lower provision for credit losses, and increased non-interest income, partially offset by higher expenses and taxes.

• Six-month net income increased to $9.2M ($1.18 diluted EPS), a 56.7% increase year-over-year, reflecting strong growth in net interest and non-interest income.

• Announced merger agreement to acquire Signature Bank of Georgia, expanding into the Atlanta market, adding SBA lending, and creating a combined entity with ~$2.3B in assets.

• Increased quarterly cash dividend to $0.16 per share, marking the 94th consecutive quarter of dividends, payable August 19, 2025.

• Tangible book value per share increased to $18.28 at June 30, 2025, from $15.85 a year ago.

Financial highlights

• Net interest income for Q2 2025 was $15.3M, up 20.7% year-over-year and 6.3% sequentially; net interest margin improved to 3.19% (tax equivalent 3.21%).

• Non-interest income grew to $4.2M, a 15.5% year-over-year and 5.6% sequential increase, led by mortgage banking and investment advisory fees.

• Non-interest expense increased $1.2M to $13.1M, mainly due to higher salaries, benefits, and merger-related legal/professional fees.

• Total assets reached $2.05B at June 30, 2025, up from $1.96B at year-end 2024 and $1.88B a year earlier.

• Loans (excluding held-for-sale) grew $39.5M (3.2%) to $1.26B; deposits rose $78.1M (4.7%) to $1.75B since year-end.

Outlook and guidance

• Management expects to remain well-capitalized, maintain strong liquidity, and continue positive loan growth momentum into Q3 2025.

• The Signature Bank of Georgia acquisition is expected to close in early Q1 2026, pending regulatory and shareholder approvals.

• No material impact anticipated from recent tax legislation (OBBBA) on 2025 effective tax rate.

• Forward-looking statements highlight risks related to acquisition completion, regulatory approvals, and market conditions.