Key Highlights

  • First Community Corporation (NASDAQ:FCCO) reported third-quarter 2026 adjusted earnings of USD 0.86 per diluted share on Wednesday, October 21, 2026, against the consensus estimate of USD 0.80, with GAAP earnings of USD 0.85.
  • The tax-equivalent net interest margin rose to 3.59% from 3.51% in the second quarter and 3.27% a year earlier, its 10th consecutive quarter of expansion.
  • Loans grew USD 32.1 million, an 8.1% annualised pace, to USD 1.610 billion, while the cost of deposits held at 1.76%.
  • Results included a non-recurring USD 797,000 gain on an SBA loan settlement tied to a loan previously charged off by Signature Bank of Georgia, which the company acquired.

Ten Quarters of a Wider Margin

First Community Corporation (NASDAQ:FCCO), the Lexington, South Carolina parent of First Community Bank, released third-quarter 2026 results at 9:00 a.m. ET on Wednesday, October 21, 2026. Adjusted diluted earnings, which exclude after-tax merger expenses, were USD 0.86 per share, against the consensus estimate of USD 0.80 and USD 0.72 a year earlier. GAAP diluted earnings were USD 0.85, against USD 0.80 in the second quarter. Net income rose to USD 8.044 million from USD 5.192 million a year earlier, an increase of about 55%. Net interest income rose to USD 20.238 million from USD 19.501 million in the second quarter. The tax-equivalent margin reached 3.59%, the 10th consecutive quarter of expansion, and nonperforming assets were only 0.04% of total assets.

How Flat Deposit Costs Widen the Spread

For First Community Corporation (NASDAQ:FCCO), the margin is widening while funding costs stand still. Net interest margin measures net interest income as a share of earning assets, so it improves when loans reprice upward faster than deposits. The cost of deposits was 1.76%, unchanged from the second quarter and below 1.81% a year earlier. Loans grew at an 8.1% annualised pace, and organic growth year to date was USD 103.7 million, or 10.6% annualised, excluding USD 195.7 million acquired with Signature Bank of Georgia. Fees helped: investment advisory income rose 39.9% year on year to USD 2.605 million, and noninterest income included the USD 797,000 SBA settlement gain. The efficiency ratio rose to 60.81% from 58.79%, as expenses reached USD 15.630 million.

Risks and What to Watch

The first risk for First Community Corporation (NASDAQ:FCCO) is funding, since deposits fell to USD 2.005 billion from USD 2.025 billion while loans grew, which may require pricier funding if the trend persists. The second is earnings quality: the USD 797,000 SBA settlement gain is non-recurring, and mortgage banking income fell to USD 614,000 from USD 1.070 million. The third is cost growth, with noninterest expense up 14.3% year on year on simple arithmetic. Credit is not a present concern, with net charge-offs of USD 9,000 and an allowance of 1.16% of loans. No shares were repurchased under the USD 7.5 million plan that runs to Friday, May 7, 2027. Investors should watch the USD 0.17 dividend, with a record date of Tuesday, November 3, 2026 and payment on Tuesday, November 17, 2026.

Where Things Stand

The answer is that First Community Corporation (NASDAQ:FCCO) kept deposit costs flat while loans grew, extending its run of margin expansion to 10 quarters. Adjusted earnings of USD 0.86 beat the USD 0.80 consensus estimate, though a one-off SBA gain helped. Tangible book value per share rose to USD 21.09 from USD 20.84. The next catalysts are the November 3 record date and the November 17 payment of the 99th consecutive quarterly dividend. Dividends are not guaranteed, and this is not investment advice.