First Community Corporation Announces First Quarter Results and Cash Dividend

First Community Corporation Announces First Quarter Results and Cash Dividend LEXINGTON, S.C., April 22, 2026 /PRNewswire/ --

Highlights for First Quarter 2026

Today, First Community Corporation (Nasdaq: FCCO), the holding company for First Community Bank, announced earnings and discussed the results of operations and the company's activities during the first quarter of 2026.

First Community reported net income for the first quarter of 2026 of $5.498 million with diluted earnings per common share of $0.59. This compares to net income and diluted earnings per common share of $3.997 million and $0.51, respectively, year-over-year and $4.830 million and $0.62, respectively, on a linked quarter basis. First quarter of 2026 results include the impact of the acquisition of Signature Bank, which was closed on January 8, 2026. Net income excluding merger expenses 1 was $6.754 million, an increase of 69.0% year-over-year and 26.1%, on a linked quarter basis. Diluted EPS excluding merger expenses 1 was $0.72, an increase of 41.1% year-over-year and 4.3% on a linked quarter basis.

Cash Dividend and Capital

The Board of Directors has approved a cash dividend for the first quarter of 2026 of $0.16 per common share. This dividend is payable on May 19, 2026 to shareholders of record of the company's common stock as of May 5, 2026. First Community President and CEO, Mike Crapps commented, "The entire board is pleased that our performance enables the company to continue its cash dividend for the 97 th consecutive quarter."

Each of the regulatory capital ratios for the bank exceeds the well capitalized minimum levels currently required by regulatory statute. At March 31, 2026, the bank's regulatory capital ratios, Leverage, Tier I Risk Based and Total Risk Based, were 9.06%, 12.80%, and 13.95%, respectively. This compares to the same ratios as of March 31, 2025 of 8.45%, 12.90%, and 13.99%, respectively. As of March 31, 2026, the bank's Common Equity Tier I ratio was 12.80% compared to 12.90% at March 31, 2025. The bank's Tangible common shareholders' equity to tangible assets 1 (TCE) was 7.93% at March 31, 2026 compared to 7.47% at December 31, 2025 and 6.66% as of March 31, 2025.

Tangible Book Value (TBV) per share 1 increased during the quarter to $19.88 per share at March 31, 2026, from $19.84 per share as of December 31, 2025, and $17.56 at March 31, 2025.

During the first quarter of 2026, under the previously approved Share Repurchase Plan, a total of 1,483 shares of the company's common stock were repurchased at an average price of $27.77 and a total value of $41,180.

Loan Portfolio Quality/Allowance for Credit Losses

The company's asset quality remains strong. The non-performing assets (NPAs) were 0.04% of total assets at March 31, 2026, with $853 thousand in NPAs, which compares to 0.02% and $372 thousand at December 31, 2025. The past due ratio for all loans was 0.17% at March 31, 2026, compared to 0.07% at December 31, 2025. During the first quarter of 2026, the bank had net charge-offs, including overdrafts, of $5 thousand and net loan recoveries, excluding overdrafts, of $4 thousand. During the first quarter of 2026, substandard loans increased $2.7 million primarily due to a $2.4 million loan that was identified during due diligence related to the acquisition of Signature Bank. Although principal and interest payments continue as agreed, the underlying real estate project is unfinished, therefore creating a credit mark of $2.0 million in recognition of the collateral deficiency. Related to this same matter, the allowance for credit losses increased from 1.05% to 1.19%. The ratio of classified loans plus Other Real Estate Owned (OREO) is 1.83% of total bank regulatory risk-based capital at March 31, 2026.

Balance Sheet

Total loans increased during the first quarter of 2026 by $238.1 million to $1.549 billion at March 31, 2026, compared to $1.311 billion at December 31, 2025. This increase includes $195.5 million related to the acquisition of Signature Bank. Excluding the impact of the day one Signature Bank acquisition balances, organic loan growth was $42.6 million during the first quarter of 2026, which represents 13.2% linked quarter annualized growth. Commercial loan production was a record high at $91.2 million during the first quarter of 2026, a 64.9% increase in production compared to the fourth quarter of 2025. There were also advances of unfunded commercial construction loans of $10.2 million during the first quarter of 2026. Offsetting some of this loan growth were loan payoffs and paydowns in the first quarter of 2026 which were up approximately 57% compared to the fourth quarter of 2025.

The yield on the loan portfolio was 5.94% in the first quarter of 2026 as compared to 5.84% in the fourth quarter of 2025. Purchase accounting loan amortization on the acquired Signature Bank loan portfolio resulted in amortization expense of $437 thousand thus reducing loan yields by 0.12% during the first quarter of 2026.

Total deposits increased $298.7 million during the first quarter of 2026 to $2.048 billion at March 31, 2026 compared to $1.750 billion at December 31, 2025, including $229.8 related to the acquisition of Signature Bank. Excluding the impact of the day one Signature Bank acquisition balances, organic deposit growth was $68.9 during the first quarter of 2026, which represents 16.0% linked quarter annualized growth. Pure deposits, which are defined as total deposits less certificates of deposit, increased $291 million on a linked quarter basis to $1.727 billion at March 31, 2026. Securities sold under agreements to repurchase, which are related to customer cash management accounts or business sweep accounts, were $99.8 million at March 31, 2026, a decrease of $7.4 million on a linked quarter basis. Non-interest-bearing deposits increased by $76.6 million on a linked quarter basis to $543.8 million or 26.6% of total deposits at March 31, 2026. The average balance per customer deposit account as of March 31, 2026 was $34,882, with the average balance per consumer account of $18,169 and per non-consumer account of $75,642. All of the above point to the granularity and the quality of the bank's deposit franchise. Costs of deposits increased seven basis points to 1.80% in the first quarter of 2026 compared to 1.73% in the fourth quarter of 2025. Cost of funds increased five basis points on a linked quarter basis to 1.85% in the first quarter of 2026 from 1.80% in the fourth quarter of 2025.

The bank has other short-term investments, primarily interest bearing cash at the Federal Reserve Bank, of $182.5 million at March 31, 2026 compared to $137.2 million at December 31, 2025. The investment portfolio was $512.6 million at March 31, 2026 compared to $492.2 million at December 31, 2025. The yield increased to 3.32% during the first quarter of 2026 as compared to 3.30% in the fourth quarter of 2025. The effective duration of the total investment portfolio is 3.3 at March 31, 2026. Accumulated Other Comprehensive Loss (AOCL) was $18.8 million at March 31, 2026 compared to $18.4 million at December 31, 2025.

Net Interest Income/Net Interest Margin

Net interest income was $18.4 million in the first quarter of 2026 compared to $16.3 million in the fourth quarter of 2025 and $14.4 million in the first quarter of 2025. The net interest margin, on a tax equivalent basis, was 3.37% for the first quarter of 2026 compared to 3.32% in the fourth quarter of 2025 and 3.13% in the first quarter of 2025. This margin expansion was driven by a combination of factors including improved loan portfolio yield and the growth in the loan portfolio. Purchase accounting amortization on the acquired Signature Bank loan portfolio resulted in amortization expense of $437 thousand thus reducing net interest margin by 0.08% during the first quarter of 2026.

Non-Interest Income

Non-interest income for the first quarter of 2026 was $4.790 million, compared to $4.288 million in the fourth quarter of 2025 and $3.982 million in the first quarter of 2025, an increase of 11.7% and 20.3%, respectively. Non-interest income for the first quarter of 2026 includes income from the Government Guaranteed Lending line of business that was part of the acquisition of Signature Bank and is discussed further below.

Total production in the mortgage line of business in the first quarter of 2026 was $42.0 million which was comprised of $25.4 million in secondary market loans, $1.9 million in adjustable rate mortgages (ARMs), and $14.7 million in construction loans. Total fee revenue in the mortgage line of business was $681 thousand in the first quarter of 2026, which includes $673 thousand associated with the secondary market loans with a gain-on-sale margin of 2.65%. This compares to production year-over-year of $43.9 million which was comprised of $25.8 million in secondary market loans, $4.0 million in ARMs, and $14.1 million in construction loans during the first quarter of 2025. Fee revenue associated with the secondary market loans in the first quarter of 2025 was $755 thousand with a gain-on-sale margin of 2.93%.

Revenue from the financial planning and investment advisory line of business was $2.271 million for the first quarter of 2026 compared to $2.146 million in the fourth quarter of 2025 and $1.806 million in the first quarter of 2025. Assets Under Management (AUM) were $1.130 billion at March 31, 2026, compared to $1.170 billion at December 31, 2025 and $892.8 million at March 31, 2025.

Fee revenue from the Government Guaranteed Lending line of business was $395 thousand in the first quarter of 2026. Production in this line of business in the first quarter of 2026 included $2.36 million in SBA loans. During the quarter, the company sold $2.021 million in loans, which resulted in a premium of $194 thousand and a gain-on-sale margin of 9.59%. Loan volume was temporarily impacted by the federal government shutdowns which affected the processing of loans in the pipeline. On April 10, 2026, First Community Bank received the Preferred Lender status from the Small Business Administration. With the shutdown resolved and the Preferred Lender status in place, the company is well positioned for future production in this line of business.

Non-Interest Expense

Non-interest expense was $17.031 million in the first quarter of 2026 which included $1.581million in merger expenses.

Other

On January 8, 2026, the company closed its previously announced acquisition of Signature Bank and completed the bank systems conversion in March of 2026. With this acquisition, the company expanded its footprint into the Atlanta, Georgia market and added a Government Guaranteed Lending line of business.

During the first quarter of 2026, the company purchased $12.544 million in federal tax credits for $11.666 million, which resulted in a benefit to income tax expense of $878 thousand.

About First Community Corporation

First Community Corporation stock trades on The NASDAQ Capital Market under the symbol "FCCO" and is the holding company for First Community Bank, a local community bank based in the Midlands of South Carolina. First Community Bank is a full-service commercial bank offering deposit and loan products and services, residential mortgage lending, financial planning/investment advisory services, and SBA/USDA lending. First Community serves customers in the Midlands, Aiken, Upstate and Piedmont Regions of South Carolina as well as Augusta and Atlanta, Georgia. For more information, visit www.firstcommunitysc.com.

FORWARD-LOOKING STATEMENTS

This news release and certain statements by our management may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans, goals, projections and expectations, and are thus prospective. Forward-looking statements can be identified by words such as "anticipate", "expects", "intends", "believes", "may", "likely", "will", "plans", "positions", "future", "forward", or other statements that indicate future periods. Such risks, uncertainties and other factors, include, among others, the following: (1) the risk that anticipated cost savings or other expected benefits of the acquisition of Signature Bank of Georgia may not be realized; (2) potential disruption to client or employee relationships as a result of the acquisition of Signature Bank of Georgia; (3) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (4) the strength of the United States economy in general and the strength of the local economies in which we conduct operations may be different than expected; (5) the rate of delinquencies and amounts of charge-offs, the level of allowance for credit loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (6) changes in legislation, regulation, policies or administrative practices, whether by judicial, governmental, or legislative action; (7) adverse conditions in the stock market, the public debt markets and other capital markets (including changes in interest rate conditions) could continue to have a negative impact on the company; (8) changes in interest rates, which have and may continue to affect our deposit and funding costs, net income, prepayment penalty income, mortgage banking income, and other future cash flows, or the market value of our assets, including our investment securities; (9) technology and cybersecurity risks, including potential business disruptions, reputational risks, and financial losses, associated with potential attacks on or failures by our computer systems and computer systems of our vendors and other third parties; (10) elevated inflation which causes adverse risk to the overall economy, and could indirectly pose challenges to our customers and to our business; (11) any increases in FDIC assessment which has increased, and may continue to increase, our cost of doing business; (12) the adverse effects of events beyond our control that may have a destabilizing effect on financial markets and the economy, such as epidemics and pandemics, war or terrorist activities, essential utility outages, government shutdowns, deterioration in the global economy, instability in the credit markets, disruptions in our customers' supply chains or disruption in transportation; and (13) risks, uncertainties and other factors disclosed in our most recent Annual Report on Form 10-K filed with the SEC, or in any of our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K filed with the SEC since the end of the fiscal year covered by our most recently filed Annual Report on Form 10-K, which are available at the SEC's Internet site ( http://www.sec.gov).

Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. We can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Considered non-GAAP financial measure – See Non-GAAP Financial Measures and reconciliation of non-GAAP financial measures to GAAP on pages 10 and 11.

FIRST COMMUNITY CORPORATION

BALANCE SHEET DATA

(Dollars in thousands, except per share data)

As of

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Total Assets

$ 2,391,531

$ 2,057,732

$ 2,066,598

$ 2,046,265

$ 2,039,371

Other Short-term Investments and CDs 1

182,497

137,184

163,237

151,323

173,246

Investment Securities

Investments Held-to-Maturity

188,728

195,135

198,824

201,761

205,819

Investments Available-for-Sale

320,710

294,109

299,529

302,627

286,944

Other Investments at Cost

3,204

2,942

2,894

Total Investment Securities

512,642

492,186

501,295

507,282

495,657

Loans Held-for-Sale

6,936

10,737

8,970

10,975

7,052

Loans

1,549,143

1,311,019

1,279,310

1,260,055

1,251,980

Allowance for Credit Losses - Investments

Allowance for Credit Losses - Loans

18,364

13,806

13,478

13,330

13,608

Allowance for Credit Losses - Unfunded Commitments

654

531

529

490

455

Goodwill

31,140

14,637

Other Intangibles

2,805

289

328

368

407

Total Deposits

2,048,264

1,749,544

1,771,164

1,754,041

1,725,718

Securities Sold Under Agreements to Repurchase

99,835

107,189

99,614

103,640

129,812

Junior Subordinated Debt

14,964

Accumulated Other Comprehensive Loss (AOCL)

(18,834)

(18,401)

(20,173)

(21,863)

(22,973)

Shareholders' Equity

220,817

167,557

161,568

155,500

149,959

Book Value Per Common Share

$ 23.50

$ 21.78

$ 21.01

$ 20.23

$ 19.52

Tangible Book Value Per Common Share (non-GAAP)

$ 19.88

$ 19.84

$ 19.06

$ 18.28

$ 17.56

Equity to Assets

9.23 %

8.14 %

7.82 %

7.60 %

7.35 %

Tangible Common Equity to Tangible Assets (TCE Ratio) (non-GAAP)

7.93 %

7.47 %

7.15 %

6.92 %

6.66 %

Loan to Deposit Ratio (Includes Loans Held-for-Sale)

75.97 %

75.55 %

72.74 %

72.46 %

72.96 %

Loan to Deposit Ratio (Excludes Loans Held-for-Sale)

75.63 %

74.93 %

72.23 %

71.84 %

72.55 %

Allowance for Credit Losses - Loans/Loans

1.19 %

1.05 %

1.06 %

1.09 %

Regulatory Capital Ratios (Bank):

Leverage Ratio

9.06 %

8.66 %

8.55 %

8.44 %

8.45 %

Tier 1 Capital Ratio

12.80 %

13.11 %

13.10 %

13.04 %

12.90 %

Total Capital Ratio

13.95 %

14.16 %

14.15 %

14.10 %

13.99 %

Common Equity Tier 1 Capital Ratio

12.80 %

13.11 %

13.10 %

13.04 %

12.90 %

Tier 1 Regulatory Capital

$ 210,758

$ 179,295

$ 175,471

$ 171,611

$ 167,673

Total Regulatory Capital

$ 229,791

$ 193,650

$ 189,497

$ 185,450

$ 181,759

Common Equity Tier 1 Capital

$ 210,758

$ 179,295

$ 175,471

$ 171,611

$ 167,673

1Includes federal funds sold and interest-bearing deposits

Average Balances:

Three months ended

March 31,

December 31,

March 31,

2026

2025

Average Total Assets

$ 2,352,005

$ 2,072,128

$ 1,981,493

Average Loans (Includes Loans Held-for-Sale)

1,511,496

1,302,826

1,239,225

Average Investment Securities

503,555

496,901

492,190

Average Short-term Investments and CDs 1

206,185

166,191

140,611

Average Earning Assets

2,221,236

1,965,918

1,872,026

Average Deposits

1,978,198

1,772,485

1,669,418

Average Other Borrowings

136,904

116,907

145,745

Average Shareholders' Equity

215,573

164,514

146,737

Asset Quality:

As of

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Loan Risk Rating by Category (End of Period)

Special Mention

$ 5,713

$ 5,186

$ 2,948

$ 2,506

$ 2,357

Substandard

4,009

1,306

1,314

1,323

1,333

Doubtful

Pass

1,539,421

1,304,527

1,275,048

1,256,226

1,248,290

Total Loans

$ 1,549,143

$ 1,311,019

$ 1,279,310

$ 1,260,055

$ 1,251,980

Nonperforming Assets

Non-accrual Loans

$ 311

$ 202

$ 205

$ 210

$ 215

Other Real Estate Owned and Repossessed Assets

168

194

437

Accruing Loans Past Due 90 Days or More

374

482

Total Nonperforming Assets

$ 853

$ 372

$ 881

$ 470

$ 658

Three months ended

March 31,

December 31,

March 31,

2026

2025

Loans Charged-off

$ 2

$ 10

$ -

Overdrafts Charged-off

Loan Recoveries

(6)

(14)

Overdraft Recoveries

(4)

(6)

Net Charge-offs (Recoveries)

$ 5

$ 40

$ (11)

Net Charge-offs / (Recoveries) to Average Loans 2

0.00 %

0.01 %

(0.00 %)

Includes federal funds sold and interest-bearing deposits

Annualized

FIRST COMMUNITY CORPORATION

INCOME STATEMENT DATA

(Dollars in thousands, except per share data)

Three months ended

March 31,

December 31,

March 31,

2026

2025

Interest income

$ 28,039

$ 24,897

$ 23,082

Interest expense

9,670

8,583

8,692

Net interest income

18,369

16,314

14,390

Provision for (release of) credit losses

193

369

437

Net interest income after provision for (release of) credit losses

18,176

15,945

13,953

Non-interest income

Deposit service charges

223

234

221

Mortgage banking income

681

698

759

Investment advisory fees and non-deposit commissions

2,271

2,146

1,806

Government guaranteed lending income

395

Other non-recurring income

Other

1,220

1,208

1,196

Total non-interest income

4,790

4,288

3,982

Non-interest expense

Salaries and employee benefits

9,492

8,173

7,657

Occupancy

817

801

777

Equipment

379

395

390

Marketing and public relations

560

542

514

FDIC assessment

272

257

300

Other real estate expenses

Amortization of intangibles

Merger expenses

1,581

455

Other

3,830

3,160

3,065

Total non-interest expense

17,031

13,827

12,754

Income before taxes

5,935

6,406

5,181

Income tax expense

437

1,576

1,184

Net income

$ 5,498

$ 4,830

$ 3,997

Per share data

Net income, basic

$ 0.60

$ 0.63

$ 0.52

Net income, diluted

$ 0.59

$ 0.62

$ 0.51

Average number of shares outstanding - basic

9,215,205

7,671,825

7,647,537

Average number of shares outstanding - diluted

9,344,816

7,786,731

7,767,978

Shares outstanding period end

9,397,960

7,693,215

7,681,601

Return on average assets

0.95 %

0.92 %

0.82 %

Return on average common equity

10.34 %

11.65 %

11.05 %

Return on average tangible common equity (non-GAAP)

12.16 %

12.81 %

12.31 %

Net interest margin (non taxable equivalent)

3.35 %

3.29 %

3.12 %

Net interest margin (taxable equivalent)

3.37 %

3.32 %

3.13 %

Efficiency ratio 1

66.46 %

64.51 %

69.23 %

Calculated by dividing non-interest expense less merger expenses by net interest income on tax equivalent basis and non interest income, excluding other non-recurring income.

FIRST COMMUNITY CORPORATION

Yields on Average Earning Assets and

Rates on Average Interest-Bearing Liabilities

(Dollars in thousands)

Three months ended March 31, 2026

Three months ended March 31, 2025

Average

Interest

Yield/

Average

Interest

Yield/

Balance

Earned/Paid

Rate

Balance

Earned/Paid

Rate

Assets

Earning assets

Loans

$ 1,511,496

$ 22,129

5.94 %

$ 1,239,225

$ 17,444

5.71 %

Non-taxable securities

42,981

324

3.06 %

46,986

342

2.95 %

Taxable securities

460,574

3,800

3.35 %

445,204

3,808

3.47 %

Int bearing deposits in other banks

205,972

1,784

3.51 %

140,548

1,487

4.29 %

Fed funds sold

213

3.81 %

6.44 %

Total earning assets

2,221,236

28,039

5.12 %

1,872,026

23,082

5.00 %

Cash and due from banks

28,395

24,632

Premises and equipment

29,885

29,874

Goodwill and other intangibles

32,279

15,063

Other assets

57,822

53,138

Allowance for credit losses - investments

(19)

(23)

Allowance for credit losses - loans

(17,593)

(13,217)

Total assets

$ 2,352,005

$ 1,981,493

Liabilities

Interest-bearing liabilities

Interest-bearing transaction accounts

$ 515,148

$ 2,226

1.75 %

$ 331,897

$ 965

1.18 %

Money market accounts

493,628

3,551

2.92 %

440,282

3,319

3.06 %

Savings deposits

105,599

0.18 %

113,070

0.28 %

Time deposits

348,870

2,937

3.41 %

333,615

3,246

3.95 %

Fed funds purchased

0.00 %

Securities sold under agreements to repurchase

121,940

664

2.21 %

130,779

814

2.52 %

FHLB Advances

Other long-term debt

14,964

245

6.64 %

14,964

269

7.29 %

Total interest-bearing liabilities

1,600,149

9,670

2.45 %

1,364,609

8,692

2.58 %

Demand deposits

514,953

450,554

Allowance for credit losses - unfunded commitments

670

480

Other liabilities

20,660

19,113

Shareholders' equity

215,573

146,737

Total liabilities and shareholders' equity

$ 2,352,005

$ 1,981,493

Cost of deposits, including demand deposits

1.80 %

1.85 %

Cost of funds, including demand deposits

1.85 %

1.94 %

Net interest spread

2.67 %

2.42 %

Net interest income/margin

$ 18,369

3.35 %

$ 14,390

3.12 %

Net interest income/margin (tax equivalent)

$ 18,456

3.37 %

$ 14,441

3.13 %

The tables below provide a reconciliation of non‑GAAP measures to GAAP for the periods indicated:

March

31,

December

31,

September

30,

June

30,

March

31,

Tangible book value per common share

2026

2025

Tangible common equity per common share (non‑GAAP)

19.88

19.84

19.06

18.28

17.56

Effect to adjust for intangible assets

3.62

1.94

1.95

1.96

Book value per common share (GAAP)

23.50

21.78

21.01

20.23

19.52

Tangible common shareholders' equity to tangible

assets

Tangible common equity to tangible assets (non‑GAAP)

7.93

7.47

7.15

6.92

6.66

Effect to adjust for intangible assets

1.30

0.67

0.68

0.69

Common equity to assets (GAAP)

9.23

8.14

7.82

7.60

7.35

Three months ended

March

31,

December

31,

March

31,

Return on average tangible common equity

2026

2025

Return on average tangible common equity (non‑GAAP)

12.16 %

12.81 %

12.31 %

Effect to adjust for intangible assets

(1.82) %

(1.16) %

(1.26) %

Return on average common equity (GAAP)

10.34 %

11.65 %

11.05 %

Three months ended

March

31,

December

31,

March

31,

Pre-tax, pre-provision earnings

2026

2025

Pre-tax, pre-provision earnings (non‑GAAP)

6,128

6,775

5,618

Effect to adjust for pre-tax, pre-provision earnings

(630)

(1,945)

(1,621)

Net Income (GAAP)

5,498

4,830

3,997

Three months ended

March

31,

December

31,

March

31,

Net income excluding the after-tax effect of merger expenses

2026

2025

Net income excluding the after-tax effect of merger

expenses (non‑GAAP)

6,754

5,357

3,997

Effect to adjust for the after-tax effect of merger expenses

(1,256)

(527)

Net Income (GAAP)

5,498

4,830

3,997

Three months ended

March

31,

December

31,

March

31,

Diluted earnings per common share excluding the after-

tax effect of merger expenses

2026

2025

Diluted earnings per common share excluding the after-tax

effect of merger expenses (non‑GAAP)

0.72

0.69

0.51

Effect to adjust for the after-tax effect of merger expenses

(0.13)

(0.07)

Diluted earnings per common share (GAAP)

0.59

0.62

0.51

Certain financial information presented above is determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). These non-GAAP financial measures include "Tangible book value per common share," "Tangible common shareholders' equity to tangible assets," "Return on average tangible common equity," "Pre-tax, pre-provision earnings," "Net income excluding the after-tax effect of merger expenses," "Diluted earnings per common share excluding the after-tax effect of merger expenses."

Our management believes that these non-GAAP measures are useful because they enhance the ability of investors and management to evaluate and compare our operating results from period-to-period in a meaningful manner. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results as reported under GAAP.

SOURCE First Community Corporation