{"url_path":"/sec/fcco/8-k/2026-07-22/body","section_key":"body","section_title":"Body","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-07-22","source_url":"https://www.sec.gov/Archives/edgar/data/932781/0001552781-26-000389-index.html","accession_number":"0001552781-26-000389","cik":"0000932781","ticker":"FCCO","issuer_name":"FIRST COMMUNITY CORP /SC/","edgar_url":"https://www.sec.gov/Archives/edgar/data/932781/0001552781-26-000389-index.html","primary_entity_key":"0000932781","primary_entity_name":"FIRST COMMUNITY CORP /SC/"},"word_count":6570,"has_tables":true,"body_markdown":"EX-99.1\n2\ne26306_ex99-1.htm\n\n**News\nRelease**\n\n**For\nRelease July 22, 2026**\n\n**9:00\nA.M.**\n\nContact: Michael C. Crapps, Chief\nExecutive Officer and President\n\nD. Shawn\nJordan, Executive Vice President & Chief Financial Officer or\n\nRobin\nD. Brown, Executive Vice President & Chief Marketing Officer\n\n(803) 951-2265\n\n**First Community Corporation\nAnnounces Leadership Transition, Second Quarter Results and Increased Cash Dividend**\n\n** **\n\n**LEXINGTON, S.C., July 22, 2026**– Today, First Community Corporation (Nasdaq: FCCO), the holding company for First Community Bank, announced planned\nchanges to the bank’s executive leadership team and discussed the results of operations and the company’s activities\nduring the second quarter of 2026.\n\nThe company announced that J. Ted\nNissen will retire from his role as CEO and President of First Community Bank and as a director of the bank and its holding company,\nFirst Community Corporation, effective December 31, 2026. Mr. Nissen is a founding member of the bank’s Executive Leadership\nTeam and he has dedicated over four decades to the banking industry, thirty-one of those years at First Community Bank. He has\nserved many industry and community organizations throughout his career including the South Carolina Bankers Association, the South\nCarolina Small Business Development Corporation, and the Lexington Medical Center Foundation, all of which have benefited from\nhis talents and his commitment to actively supporting our industry and our local community. Mike Crapps, CEO and President of\nFirst Community Corporation, commented on Mr. Nissen’s retirement by saying, “Through his passion and hard work, Ted\nhas contributed so much to so many during his very distinguished career. His contributions to First Community Bank have been significant,\nhis impact is felt throughout our organization, and we will continue to benefit from the legacy that he has created for years\nto come. Words are not adequate to express our thanks to Ted for all that he has done for First Community and for all that he\nhas meant to our board, our executive team, our employees, our customers, and our community members. We all wish him well as he\nmoves into this next season.”\n\nWith Mr. Nissen’s retirement,\nthe CEO and President role will be split and effective January 1, 2027, Vaughan R. Dozier will become Chief Executive Officer\nof First Community Bank and Joseph A. “Drew” Painter will become President of the bank. With their new roles, Mr.\nDozier and Mr. Painter will join the company’s and bank’s board of directors. In his new position as CEO, Mr. Dozier\nwill be responsible for overall bank operations and the oversight of the bank’s Executive Leadership Team including finance,\ncredit, risk, operations, human resources, and marketing as well as the bank’s residential mortgage lending line of business.\nAs President, Mr. Painter will be responsible for commercial and retail banking, financial planning and investment advisory services,\nand government guaranteed lending, as well as the bank’s Business Services and Branch Administration areas. Mr. Dozier and\nMr. Painter are both seasoned bankers with long tenures with First Community, eighteen and twenty-three years, respectively. Both\nhave much institution and industry knowledge that they will bring to their new roles. Both understand First Community’s\nbusiness and culture on a deep level. Each has been incredibly successful in their various roles with the bank, having most recently\nserved as Co-Commercial and Retail Banking Officers leading significant geographic regions for the bank in addition to their service\non the bank’s Executive Leadership Team. Each has graduated from the First Community Bank Leadership Institute and each\nhas also been recognized by the South Carolina Bankers Association as a Young Banker of the Year.\n\nAlso, effective January 1, 2027,\nMichael Cromer and Trey Werner will assume the roles of Regional Executives, each responsible for the oversight of a geographic\nregion of First Community’s network of banking offices. Mr. Cromer will oversee the Midlands region of South Carolina and\nthe CSRA region of South Carolina and Georgia, while Mr. Werner will oversee the Upstate and Piedmont regions of South Carolina\nas well as the Atlanta/Sandy Springs, Georgia region. Both have had successful tenures with the bank, Mr. Cromer for eighteen\nyears and Mr. Werner for ten years. They are seasoned and talented bankers who will positively impact these important regions\nfor the bank in their new leadership roles.\n\nMike Crapps will continue in his\nrole as CEO and President of First Community Corporation focusing on board and corporate governance, investor relations, strategy,\nbalance sheet and capital management, and leadership development.\n\nCommenting on the announced leadership\ntransition, First Community board Chairman Jimmy Chao said, “The long-term success and sustainability of First Community\nBank has been and continues to be an ongoing focus of our company and we have made it a priority to invest in our people to prepare\nthem for future leadership opportunities. This current leadership transition began in 2023 and it has been implemented in stages\nover these past several years. Historically, most of our bank’s growth and success has been driven organically under the\nleadership of Vaughan and Drew. We are committed to a seamless and successful leadership transition of the CEO and President roles\nto Vaughan and Drew and have great confidence in their partnership leading our bank to even greater success. While Ted has chosen\nto leave his role a little earlier than planned due to personal health reasons, we are fortunate that he will continue in a consulting\nrole through December 31, 2027 to help ensure a smooth transition. Our board of directors is incredibly grateful to Ted for all\nof his many contributions to First Community through the years. He has generously shared his time and talents with our company\nand led with a servant’s heart to impact lives for success and significance.”\n\nIn addition to announcing the leadership\ntransition, First Community announced results for the second quarter of 2026.\n\n**Highlights for the second quarter of 2026\ninclude:**\n\n** **\n\n·Net\nincome of $7.595 million during the second quarter, an increase of 46.5% year-over-year\nand 38.1% on a linked quarter basis. Net income excluding merger expenses1\nduring the quarter of $7.979 million, an increase of 48.7% year-over-year and 18.1%,\non a linked quarter basis.\n\n·Net\nincome for the six months ended June 30, 2026 of $13.093 million, a 42.6% increase over\nthe same time period in 2025. Net income for the six months ended June 30, 2026, excluding\nmerger expenses1, of $14.733 million, an increase of 57.4% year-over-year.\n\n·Diluted\nEPS of $0.80 per common share during the second quarter, an increase of 19.4% year-over-year\nand 35.6% on a linked quarter basis. Diluted EPS excluding merger expenses1\nof $0.84, an increase of 21.7% year-over-year and 16.7% on a linked quarter basis.\n\n·Diluted\nEPS of $1.39 per common share for the six months ended June 30, 2026, an increase of\n17.8% over the same time period in 2025. Diluted EPS excluding merger expenses1\nof $1.56 for the six months ended June 30, 2026, an increase of 30.0% over the\nsame time period in 2025.\n\n·Total\ndeposits were $2.025 billion at June 30, 2026. Year-to-date through June 30, 2026, total\ndeposits have increased $275.3 million, including $229.8 million related to the acquisition\nof Signature Bank of Georgia that closed on January 8, 2026. Excluding the impact of\nday one Signature Bank acquisition balances, organic deposit growth was $45.5 million\nduring the first six months of 2026, which represents an annualized growth rate of 5.2%.\n\n·Total\nloans were $1.578 billion at June 30, 2026 with growth of $29.1 million during the quarter,\nan annualized growth rate of 7.5%. Year-to-date loan growth is $267.3 million. This growth\nincludes $195.7 million related to the acquisition of Signature Bank. Excluding the impact\nof the day one Signature Bank acquisition balances, organic loan growth was $71.6 million\nduring the first half of 2026 which represents an 11.0% annualized growth rate.\n\n·Capital\nratios including the Tangible common shareholders’ equity to tangible assets1\n(TCE) and the Leverage ratio increased to 8.37% and 9.29%, respectively.\n\n·Net\ninterest margin, on a tax equivalent basis, of 3.51%, an expansion of fourteen basis\npoints compared to the first quarter of 2026. This is the ninth consecutive quarter of\nmargin expansion.\n\n1\nConsidered non-GAAP financial measure – See Non-GAAP Financial Measures and reconciliation\nof non-GAAP financial measures to GAAP on pages 12 and 13.\n\n·Key\ncredit quality metrics continue to be strong with net charge-offs, including overdrafts,\nduring the second quarter of 2026 of $21 thousand; net loan recoveries, excluding overdrafts,\nduring the quarter of $3 thousand; non-performing assets of 0.04%; and past due loans\nof 0.26% at June 30, 2026.\n\n·Investment\nadvisory revenue of $2.286 million, an increase of 30.6% year-over-year and 0.7% on a\nlinked quarter basis. Year to date investment advisory revenue of $4.557 million, an\nincrease of 28.1% over the same time period in 2025. Assets under management (AUM) were\n$1.378 billion at June 30, 2026, compared to $1.130 billion at March 31, 2026, and $1.170\nbillion at December 31, 2025.\n\n·Mortgage\nincome of $1.070 million during the second quarter of the year, an increase of 21.7%\nyear-over-year and 57.1% on a linked quarter basis. Year-to-date mortgage income of $1.751\nmillion, an increase of 6.90% over the same time period in 2025.\n\n·Government\nGuaranteed Lending fee income of $704 thousand in the second quarter of 2026, with $16.140\nmillion in loan production, $8.94 million in loans sold, and a gain-on-sale margin of\n7.50%.\n\n·Cash\ndividend of $0.17 per common share, the 98th consecutive quarter of cash dividends\npaid to common shareholders.\n\n**Earnings**\n\nNet income for the second quarter\nof 2026 was $7.595 million with diluted earnings per common share of $0.80. This compares to net income and diluted earnings per\ncommon share of $5.186 million and $0.67, respectively, year-over-year and $5.498 million and $0.59, respectively, on a linked\nquarter basis. Net income excluding merger expenses1 was $7.979 million, an increase of 48.7% year-over-year and 18.1%,\non a linked quarter basis. Diluted EPS excluding merger expenses1 was $0.84, an increase of 21.7% year-over-year and\n16.7% on a linked quarter basis. Results reported include the impact of the acquisition of Signature Bank, which closed on January\n8, 2026.\n\nYear-to-date through June 30, 2026,\nnet income was $13.093 million compared to $9.183 million during the first six months of 2025. Diluted earnings per share for\nthe first half of 2026 were $1.39 compared to $1.18 during the same time period in 2025. Net income year-to-date, excluding merger\nexpenses1, was $14.733 million, an increase of 57.4% year-over-year. Diluted EPS year-to-date, excluding merger expenses1,\nwas $1.56, an increase of 30.0% year-over-year. Results reported include the impact of the acquisition of Signature Bank of Georgia,\nwhich was closed on January 8, 2026.\n\n**Cash\nDividend and Capital**\n\nThe Board of Directors has approved\nan increased cash dividend for the second quarter of 2026 of $0.17 per common share. This dividend is payable on August 18, 2026\nto shareholders of record of the company’s common stock as of August 4, 2026. First Community Corporation CEO and President,\nMike Crapps commented, “The entire board is pleased that our performance enables the company to continue its cash dividend\nfor the 98th consecutive quarter.”\n\nEach of the regulatory capital ratios\nfor the bank exceeds the well capitalized minimum levels currently required by regulatory statute. At June 30, 2026, the bank’s\nregulatory capital ratios, Leverage, Tier I Risk Based and Total Risk Based, were 9.29%, 12.98%, and 14.13%, respectively. This\ncompares to the same ratios as of June 30, 2025 of 8.44%, 13.04%, and 14.10%, respectively. As of June 30, 2026, the bank’s\nCommon Equity Tier I ratio was 12.98% compared to 13.04% at June 30, 2025. The bank’s tangible common shareholders’\nequity to tangible assets1 (TCE) was 8.37% at June 30, 2026 compared to 7.47% at December 31, 2025 and 6.92% as of\nJune 30, 2025.\n\nTangible Book Value (TBV) per share1\nincreased during the quarter to $20.84 per share at June 30, 2026, from $19.84 per share as of December 31, 2025, and $18.28\nper share at June 30, 2025.\n\nOn May 7, 2026, the company announced\nthat it had approved a plan to utilize up to $7.5 million of capital to repurchase shares of the company’s common stock,\nwhich represents approximately 3.3% of total shareholders’ equity as of June 30, 2026. Under the repurchase plan, the company\nmay repurchase shares from time to time, through May 7, 2027. While the company did not repurchase any shares during the second\nquarter of 2026, the repurchase plan provides capital management opportunities for the company in the future.\n\n1\nConsidered non-GAAP financial measure – See Non-GAAP Financial Measures and reconciliation\nof non-GAAP financial measures to GAAP on pages 12 and 13.\n\n**Loan Portfolio Quality/Allowance\nfor Credit Losses**\n\nThe company’s asset\nquality remains strong. The non-performing assets (NPAs) were 0.04% of total assets at June 30, 2026, with $887 thousand in NPAs,\nwhich compares to 0.04% and $853 thousand, respectively, at March 31, 2026. The past due ratio for all loans was 0.26% at June\n30, 2026 compared to 0.17% at March 31, 2026. During the second quarter of 2026, the bank had net charge-offs, including overdrafts,\nof $21 thousand and net loan recoveries, excluding overdrafts, of $3 thousand. Year-to-date through June 30, 2026, net charge-offs,\nincluding overdrafts, of $26 thousand and net loan recoveries, excluding overdrafts, of $7 thousand. The ratio of classified loans\nplus Other Real Estate Owned (OREO) is 2.55% of total bank regulatory risk-based capital at June 30, 2026.\n\n**Balance Sheet**\n\nTotal loans increased during the\nsecond quarter of 2026 by $29.1 million to $1.578 billion at June 30, 2026, a linked quarter annualized growth rate of 7.5%. Commercial\nloan production was $60.3 million during the second quarter of 2026. There were also advances of unfunded commercial construction\nloans of $24.9 million during the second quarter of 2026. Offsetting some of this loan growth were loan payoffs and paydowns in\nthe second quarter of 2026 which were up approximately 17.6% compared to the first quarter of 2026.\n\nThe yield on the loan portfolio was\n6.02% in the second quarter of 2026 as compared to 5.94% in the first quarter of 2026. Purchase accounting amortization on the\nacquired Signature Bank loan portfolio resulted in amortization expense of $178 thousand during the second quarter of 2026 compared\nto $437 thousand in the first quarter of the year, thus reducing net interest margin by 0.03% during the second quarter of 2026\ncompared to 0.08% during the first quarter of 2026.\n\nTotal deposits were $2.025 billion\nat June 30, 2026 compared to $2.048 billion at March 31, 2026. This decrease in deposits is largely attributable to deposit flows\ninto some specific accounts near the end of the first quarter which reversed out early in the second quarter. In fact, average\ntotal deposits actually increased in the second quarter to $2.019 billion as compared to $1.978 billion in the first quarter.\nPure deposits, which are defined as total deposits less certificates of deposit, were $1.702 billion at June 30, 2026 compared\nto $1.727 billion at March 31, 2026. Securities sold under agreements to repurchase, which are related to customer cash management\naccounts or business sweep accounts, were $96.5 million at June 30, 2026. Non-interest-bearing deposits were $527.9 million or\n26.1% of total deposits at June 30, 2026. The average balance per customer deposit account as of June 30, 2026 was $34,037, with\nthe average balance per consumer account of $18,020 and per non-consumer account of $72,669. All of the above point to the granularity\nand the quality of the bank’s deposit franchise. Costs of deposits decreased four basis points to 1.76% in the second quarter\nof 2026 compared to 1.80% in the first quarter of 2026. Cost of funds decreased three basis points on a linked quarter basis to\n1.82% in the second quarter of 2026 from 1.85% in the first quarter of 2026.\n\nThe bank has other short-term investments,\nprimarily interest-bearing cash at the Federal Reserve Bank, of $130.5 million at June 30, 2026 compared to $182.5 million at\nMarch 31, 2026. The investment portfolio was $510.8 million at June 30, 2026 compared to $512.6 million at March 31, 2026. The\nyield increased to 3.33% during the second quarter of 2026 as compared to 3.32% in the first quarter of 2026. The effective duration\nof the total investment portfolio is 3.4 at June 30, 2026. Accumulated Other Comprehensive Loss (AOCL) was $18.2 million at June\n30, 2026 compared to $18.8 million at March 31, 2026.\n\nNet Interest Income/Net\nInterest Margin\n\nNet interest income was $19.501 million\nin the second quarter of 2026 compared to $18.369 million in the first quarter of 2026 and $15.324 million in the second quarter of 2025.\nThe net interest margin, on a tax equivalent basis, was 3.51% for the second quarter of 2026 compared to 3.37% in the first quarter of\n2026 and 3.21% in the second quarter of 2025. This margin expansion was driven by a combination of factors including improved loan portfolio\nyield, the growth in the loan portfolio which resulted in a better earning asset mix, a reduction in the purchase accounting amortization\nexpense of the acquired Signature Bank loan portfolio, lower cost of deposits and lower cost of funds. Loans as a percent of earning\nassets were 70.4% at June 30, 2026 compared to 68.0% at March 31, 2026. Purchase accounting amortization on the acquired Signature Bank\nloan portfolio resulted in amortization expense of $178 thousand during the second quarter of 2026 compared to $437 thousand in the first\nquarter of the year, thus reducing net interest margin by 0.03% during the second quarter of 2026 compared to 0.08% during the first\nquarter of 2026. Cost of deposits and cost of funds also declined by 0.04% and 0.03%, respectively.\n\nNon-Interest Income\n\nNon-interest income for the second\nquarter of 2026 was $5.637 million, compared to $4.790 million in the first quarter of 2026 and $4.206 million in the second quarter\nof 2025, an increase of 17.7% and 34.0%, respectively.\n\nTotal production in the mortgage\nline of business in the second quarter of 2026 was $53.8 million which was comprised of $38.3 million in secondary market loans,\n$2.3 million in adjustable rate mortgages (ARMs), and $13.2 million in construction loans. Total fee revenue in the mortgage line\nof business was $1.070 million in the second quarter of 2026, which includes $1.066 million associated with the secondary market\nloans with a gain-on-sale margin of 2.78%. This compares to production year-over-year of $62.9 million which was comprised of\n$31.9 million in secondary market loans, $5.7 million in ARMs, and $25.3 million in construction loans during the second quarter\nof 2025. Fee revenue associated with the secondary market loans in the second quarter of 2025 was $876 thousand with a gain-on-sale\nmargin of 2.74%.\n\nRevenue from the financial planning\nand investment advisory line of business was $2.286 million for the second quarter of 2026 compared to $2.271 million in the first\nquarter of 2026 and $1.751 million in the second quarter of 2025. Assets Under Management (AUM) were $1.378 billion at June 30,\n2026, compared to $1.130 billion at March 31, 2026, and $1.011 billion at June 30, 2025.\n\nTotal fee revenue from the Government Guaranteed\nLending line of business was $704 thousand in the second quarter of 2026 compared to $400 thousand in the first quarter of the year.\nProduction in this line of business in the second quarter of 2026 included $16.140 million in SBA loans compared to the first quarter\nof the year with production of $2.36 million in SBA loans. During the second quarter of 2026, the company sold $8.94 million in loans,\nwhich resulted in a premium of $671 thousand and a gain-on-sale margin of 7.50%. This compares to the first quarter of the year with\n$2.021 million in loans sold for a premium of $194 thousand and a gain-on-sale margin of 9.59%. As previously reported, on April 10,\n2026, First Community Bank received its Preferred Lender status from the Small Business Administration.\n\nNon-Interest Expense\n\nNon-interest expense was $15.273\nmillion in the second quarter of 2026 compared to $17.031 million in the first quarter of the year. Merger expenses were $1.078\nmillion lower in the second quarter as the company wrapped up the acquisition of Signature Bank of Georgia with the system conversion\nin mid-March. Marketing and public relations expenses were down $271 thousand on a linked quarter basis due to a planned reduced\nmedia schedule. Other expenses were down $560 thousand primarily due to lower audit, attorney and other professional fees as well\nas lower fraud-related losses. Further, in the second quarter of 2026, the company benefited from the reversal of a merger related\naccrual in the amount of $270 thousand.\n\n**Other**\n\nDuring the second quarter of 2026,\nthe company purchased $900 thousand in 2026 South Carolina low income housing tax credits which resulted in an income tax benefit\nof $114 thousand. During the first quarter of 2026, the company purchased $12.544 million in federal tax credits for $11.666 million,\nwhich resulted in a benefit to income tax expense of $878 thousand.\n\n**About First Community Corporation**\n\nFirst Community Corporation stock\ntrades on The NASDAQ Capital Market under the symbol “FCCO” and is the holding company for First Community Bank, a\nlocal community bank based in the Midlands of South Carolina. First Community Bank is a full-service commercial bank offering\ndeposit and loan products and services, residential mortgage lending, financial planning/investment advisory services, and SBA/USDA\nlending. First Community serves customers in the Midlands, Aiken, Upstate and Piedmont Regions of South Carolina as well as Augusta\nand Atlanta, Georgia. For more information, visit www.firstcommunitysc.com.\n\nFORWARD-LOOKING STATEMENT\n\nThis news release and certain statements\nby our management may contain “forward-looking statements” within the meaning of the Private Securities Litigation\nReform Act of 1995, such as statements relating to future plans, goals, projections and expectations, including statements regarding\nthe anticipated timing and benefits of the leadership transition, the consulting arrangement with Mr. Nissen, and the expected\nroles and responsibilities of the company’s executive officers, and are thus prospective. Forward-looking statements can\nbe identified by words such as “anticipate”, “expects”, “intends”, “believes”,\n“may”, “likely”, “will”, “plans”, “positions”, “future”,\n“forward”, or other statements that indicate future periods. Such risks, uncertainties and other factors, include,\namong others, the following: (1) the risk that anticipated cost savings or other expected benefits of the acquisition of Signature\nBank of Georgia may not be realized; (2) potential disruption to client or employee relationships as a result of the acquisition\nof Signature Bank of Georgia; (3) competitive pressures among depository and other financial institutions may increase significantly\nand have an effect on pricing, spending, third-party relationships and revenues; (4) the strength of the United States economy\nin general and the strength of the local economies in which we conduct operations may be different than expected; (5) the rate\nof delinquencies and amounts of charge-offs, the level of allowance for credit loss, the rates of loan growth, or adverse changes\nin asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (6) changes in\nlegislation, regulation, policies or administrative practices, whether by judicial, governmental, or legislative action; (7) adverse\nconditions in the stock market, the public debt markets and other capital markets (including changes in interest rate conditions)\ncould continue to have a negative impact on the company; (8) changes in interest rates, which have and may continue to affect\nour deposit and funding costs, net income, prepayment penalty income, mortgage banking income, and other future cash flows, or\nthe market value of our assets, including our investment securities; (9) technology and cybersecurity risks, including potential\nbusiness disruptions, reputational risks, and financial losses, associated with potential attacks on or failures by our computer\nsystems and computer systems of our vendors and other third parties; (10) elevated inflation which causes adverse risk to the\noverall economy, and could indirectly pose challenges to our customers and to our business; (11) any increases in FDIC assessment\nwhich has increased, and may continue to increase, our cost of doing business; (12) the adverse effects of events beyond our control\nthat may have a destabilizing effect on financial markets and the economy, such as epidemics and pandemics, war or terrorist activities,\nessential utility outages, government shutdowns, deterioration in the global economy, instability in the credit markets, disruptions\nin our customers’ supply chains or disruptions in transportation; (13) risks associated with the planned leadership transition,\nincluding the ability to retain key employees, maintain client relationships, and successfully integrate new executive responsibilities;\nand (14) risks, uncertainties and other factors disclosed in our most recent Annual Report on Form 10-K filed with the SEC, or\nin 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\ncovered by our most recently filed Annual Report on Form 10-K, which are available at the SEC’s Internet site (http://www.sec.gov).\n\nAlthough we believe that the assumptions\nunderlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. We can give no\nassurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking\ninformation should not be construed as a representation by our company or any person that the future events, plans, or expectations\ncontemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements,\nwhether as a result of new information, future events, or otherwise, except as required by law.\n\n###\n\n**FIRST\nCOMMUNITY CORPORATION**\n\n**BALANCE\nSHEET DATA**\n\n**(Dollars\nin thousands, except per share data)**\n\nAs of\n\nJune 30,\nMarch 31,\nDecember 31,\nSeptember 30,\nJune 30,\n\n2026\n2026\n2025\n2025\n2025\n\nTotal Assets\n$2,372,348\n$2,391,531\n$2,057,732\n$2,066,598\n$2,046,265\n\nOther Short-term Investments and CDs1\n130,516\n182,497\n137,184\n163,237\n151,323\n\nInvestment Securities\n\nInvestments Held-to-Maturity\n184,974\n188,728\n195,135\n198,824\n201,761\n\nInvestments Available-for-Sale\n322,596\n320,710\n294,109\n299,529\n302,627\n\nOther Investments at Cost\n3,252\n3,204\n2,942\n2,942\n2,894\n\nTotal Investment Securities\n510,822\n512,642\n492,186\n501,295\n507,282\n\nLoans Held-for-Sale\n11,946\n6,936\n10,737\n8,970\n10,975\n\nLoans\n1,578,292\n1,549,143\n1,311,019\n1,279,310\n1,260,055\n\nAllowance for Credit Losses - Investments\n14\n16\n19\n19\n19\n\nAllowance for Credit Losses - Loans\n18,515\n18,364\n13,806\n13,478\n13,330\n\nAllowance for Credit Losses - Unfunded Commitments\n609\n654\n531\n529\n490\n\nGoodwill\n29,399\n29,399\n14,637\n14,637\n14,637\n\nOther Intangibles\n2,681\n2,785\n289\n328\n368\n\nTotal Deposits\n2,024,840\n2,048,264\n1,749,544\n1,771,164\n1,754,041\n\nSecurities Sold Under Agreements to Repurchase\n96,546\n99,835\n107,189\n99,614\n103,640\n\nFederal Funds Purchased\n—\n—\n—\n—\n—\n\nFederal Home Loan Bank Advances\n—\n—\n—\n—\n—\n\nJunior Subordinated Debt\n14,964\n14,964\n14,964\n14,964\n14,964\n\nAccumulated Other Comprehensive Loss (AOCL)\n(18,224)\n(18,834)\n(18,401)\n(20,173)\n(21,863)\n\nShareholders’ Equity\n227,985\n220,817\n167,557\n161,568\n155,500\n\nBook Value Per Common Share\n$24.25\n$23.50\n$21.78\n$21.01\n$20.23\n\nTangible Book Value Per Common Share (non-GAAP)\n$20.84\n$20.07\n$19.84\n$19.06\n$18.28\n\nEquity to Assets\n9.61%\n9.23%\n8.14%\n7.82%\n7.60%\n\nTangible Common Equity to Tangible Assets (TCE Ratio) (non-GAAP)\n8.37%\n8.00%\n7.47%\n7.15%\n6.92%\n\nLoan to Deposit Ratio (Includes Loans Held-for-Sale)\n78.54%\n75.97%\n75.55%\n72.74%\n72.46%\n\nLoan to Deposit Ratio (Excludes Loans Held-for-Sale)\n77.95%\n75.63%\n74.93%\n72.23%\n71.84%\n\nAllowance for Credit Losses - Loans/Loans\n1.17%\n1.19%\n1.05%\n1.05%\n1.06%\n\nRegulatory Capital Ratios (Bank):\n\nLeverage Ratio\n9.29%\n9.09%\n8.66%\n8.55%\n8.44%\n\nTier 1 Capital Ratio\n12.98%\n12.82%\n13.11%\n13.10%\n13.04%\n\nTotal Capital Ratio\n14.13%\n13.98%\n14.16%\n14.15%\n14.10%\n\nCommon Equity Tier 1 Capital Ratio\n12.98%\n12.82%\n13.11%\n13.10%\n13.04%\n\nTier 1 Regulatory Capital\n$217,585\n$211,380\n$179,295\n$175,471\n$171,611\n\nTotal Regulatory Capital\n$236,724\n$230,413\n$193,650\n$189,497\n$185,450\n\nCommon Equity Tier 1 Capital\n$217,585\n$211,380\n$179,295\n$175,471\n$171,611\n\n1\nIncludes federal funds sold and interest-bearing deposits\n\n**FIRST\nCOMMUNITY CORPORATION**\n\n**BALANCE\nSHEET DATA**\n\n**(Dollars\nin thousands, except per share data)**\n\nAverage Balances:\nThree\nmonths ended\nSix months\nended\n\nJune 30,\nJune 30,\n\n2026\n2025\n2026\n2025\n\nAverage Total Assets\n$2,366,850\n$2,033,216\n$2,359,468\n$2,007,497\n\nAverage Loans (Includes\nLoans Held-for-Sale)\n1,572,564\n1,263,027\n1,542,199\n1,251,192\n\nAverage Investment Securities\n510,084\n505,473\n506,837\n498,868\n\nAverage\nShort-term Investments and CDs1\n152,375\n155,878\n179,132\n148,287\n\nAverage Earning Assets\n2,235,023\n1,924,378\n2,228,168\n1,898,347\n\nAverage Deposits\n2,018,940\n1,737,259\n1,998,681\n1,703,526\n\nAverage Other Borrowings\n116,026\n125,197\n126,407\n135,414\n\nAverage Shareholders’ Equity\n223,611\n152,097\n219,614\n149,432\n\nAsset Quality:\nAs of\n\nJune 30,\nMarch 31,\nDecember 31,\nSeptember 30,\nJune 30,\n\n2026\n2026\n2025\n2025\n2025\n\nLoan Risk Rating by Category (End of Period)\n\nSpecial Mention\n$5,205\n$5,713\n$5,186\n$2,948\n$2,506\n\nSubstandard\n5,869\n4,009\n1,306\n1,314\n1,323\n\nDoubtful\n—\n—\n—\n—\n—\n\nPass\n1,567,218\n1,539,421\n1,304,527\n1,275,048\n1,256,226\n\nTotal Loans\n$1,578,292\n$1,549,143\n$1,311,019\n$1,279,310\n$1,260,055\n\nNonperforming Assets\n\nNon-accrual Loans\n$300\n$311\n$202\n$205\n$210\n\nOther Real Estate Owned and Repossessed Assets\n168\n168\n168\n194\n194\n\nAccruing Loans Past Due 90 Days or More\n419\n374\n2\n482\n66\n\nTotal Nonperforming Assets\n$887\n$853\n$372\n$881\n$470\n\nThree\nmonths ended\nSix months\nended\n\nJune 30,\nJune 30,\n\n2026\n2025\n2026\n2025\n\nLoans Charged-off\n$4\n$3\n$6\n$3\n\nOverdrafts Charged-off\n26\n19\n39\n28\n\nLoan Recoveries\n(7)\n(8)\n(13)\n(22)\n\nOverdraft\nRecoveries\n(2)\n(4)\n(6)\n(10)\n\nNet\nCharge-offs (Recoveries)\n$21\n$10\n$26\n$(1)\n\nNet\nCharge-offs / (Recoveries) to Average Loans2\n0.01%\n0.00%\n0.00%\n(0.00%)\n\n1 Includes federal\nfunds sold and interest-bearing deposits\n\n2\nAnnualized\n\n**FIRST\nCOMMUNITY CORPORATION**\n\n**INCOME\nSTATEMENT DATA**\n\n**(Dollars\nin thousands, except per share data)**\n\nThree months ended\nThree months ended * *\nSix months ended\n\nJune 30,\nMarch 31, * *\nJune 30,\n\n2026\n2025\n2026\n2025 * *\n2026\n2025\n\nInterest income\n$29,175\n$24,173\n$28,039\n$23,082 * *\n$57,214\n$47,255\n\nInterest expense\n9,674\n8,849\n9,670\n8,692 * *\n19,344\n17,541\n\nNet interest income\n19,501\n15,324\n18,369\n14,390 * *\n37,870\n29,714\n\nProvision for (release of) credit losses\n126\n(237)\n193\n437 * *\n319\n200\n\nNet interest income after provision for (release of) credit losses\n19,375\n15,561\n18,176\n13,953 * *\n37,551\n29,514\n\nNon-interest income\n\n* *\n\nDeposit service charges\n213\n224\n223\n221 * *\n436\n445\n\nMortgage banking income\n1,070\n879\n681\n759 * *\n1,751\n1,638\n\nInvestment advisory fees and non-deposit commissions\n2,286\n1,751\n2,271\n1,806 * *\n4,557\n3,557\n\nGovernment guaranteed lending income\n704\n—\n400\n— * *\n1,104\n—\n\nGain on sale of other assets\n—\n127\n—\n— * *\n—\n127\n\nOther non-recurring income\n80\n—\n—\n— * *\n80\n—\n\nOther\n1,284\n1,225\n1,215\n1,196 * *\n2,499\n2,421\n\nTotal non-interest income\n5,637\n4,206\n4,790\n3,982 * *\n10,427\n8,188\n\nNon-interest expense\n\n* *\n\nSalaries and employee benefits\n9,514\n8,060\n9,492\n7,657 * *\n19,006\n15,717\n\nOccupancy\n893\n772\n817\n777 * *\n1,710\n1,549\n\nEquipment\n406\n390\n379\n390 * *\n785\n780\n\nMarketing and public relations\n289\n208\n560\n514 * *\n849\n722\n\nFDIC assessment\n294\n274\n272\n300 * *\n566\n574\n\nOther real estate expense, net\n3\n110\n4\n12 * *\n7\n122\n\nAmortization of intangibles\n101\n40\n96\n39 * *\n197\n79\n\nMerger expenses\n503\n234\n1,581\n— * *\n2,084\n234\n\nOther\n3,270\n2,995\n3,830\n3,065 * *\n7,100\n6,060\n\nTotal non-interest expense\n15,273\n13,083\n17,031\n12,754 * *\n32,304\n25,837\n\nIncome before taxes\n9,739\n6,684\n5,935\n5,181 * *\n15,674\n11,865\n\nIncome tax expense\n2,144\n1,498\n437\n1,184 * *\n2,581\n2,682\n\nNet income\n$7,595\n$5,186\n$5,498\n$3,997 * *\n$13,093\n$9,183\n\n* *\n\nPer share data\n\n* *\n\nNet income, basic\n$0.81\n$0.68\n$0.60\n$0.52 * *\n$1.41\n$1.20\n\nNet income, diluted\n$0.80\n$0.67\n$0.59\n$0.51 * *\n$1.39\n$1.18\n\n* *\n\nAverage number of shares outstanding - basic\n9,366,415\n7,663,964\n9,215,205\n7,647,537 * *\n9,291,228\n7,665,796\n\nAverage number of shares outstanding - diluted\n9,504,285\n7,786,757\n9,344,816\n7,767,978 * *\n9,421,205\n7,775,231\n\nShares outstanding period end\n9,399,731\n7,685,754\n9,397,960\n7,681,601 * *\n9,399,731\n7,685,754\n\n* *\n\nReturn on average assets\n1.29%\n1.02%\n0.95%\n0.82%* *\n1.12%\n0.92%\n\nReturn on average common equity\n13.62%\n13.68%\n10.34%\n11.05%* *\n12.02%\n12.39%\n\nReturn on average tangible common equity (non-GAAP)\n15.91%\n15.18%\n12.06%\n12.31%* *\n14.03%\n13.78%\n\nNet interest margin (non taxable equivalent)\n3.50%\n3.19%\n3.35%\n3.12%* *\n3.43%\n3.16%\n\nNet interest margin (taxable equivalent)\n3.51%\n3.21%\n3.37%\n3.13%* *\n3.44%\n3.17%\n\nEfficiency ratio1\n58.79%\n66.04%\n66.46%\n69.23%* *\n62.48%\n67.59%\n\n* *\n\n1 Calculated by dividing non-interest expense less merger expenses by net interest income on tax equivalent basis and non-interest income, excluding gain on sale of other assets and other non-recurring income.\n\n**FIRST COMMUNITY CORPORATION**\n\n**Yields on Average Earning Assets and **\n\n**Rates on Average Interest-Bearing Liabilities**\n\n**(Dollars in thousands)**\n\nThree months ended June 30, 2026\nThree months ended June 30, 2025\n\nAverage\nInterest\nYield/\nAverage\nInterest\nYield/\n\nBalance\nEarned/Paid\nRate\nBalance\nEarned/Paid\nRate\n\nAssets\n\nEarning assets\n\nLoans\n$1,572,564\n$23,594\n6.02%\n$1,263,027\n$18,174\n5.77%\n\nNon-taxable securities\n43,492\n337\n3.11%\n46,160\n344\n2.99%\n\nTaxable securities\n466,592\n3,901\n3.35%\n459,313\n3,976\n3.47%\n\nInt bearing deposits in other banks\n152,253\n1,342\n3.54%\n155,860\n1,679\n4.32%\n\nFed funds sold\n122\n1\n3.29%\n18\n—\n0.00%\n\nTotal earning assets\n2,235,023\n29,175\n5.24%\n1,924,378\n24,173\n5.04%\n\nCash and due from banks\n28,046\n\n25,103\n\nPremises and equipment\n29,679\n\n29,732\n\nGoodwill and other intangibles\n32,134\n\n15,024\n\nOther assets\n60,384\n\n52,595\n\nAllowance for credit losses - investments\n(16)\n\n(24)\n\nAllowance for credit losses - loans\n(18,400)\n\n(13,592)\n\nTotal assets\n$2,366,850\n\n$2,033,216\n\nLiabilities\n\nInterest-bearing liabilities\n\nInterest-bearing transaction accounts\n$543,720\n$2,364\n1.74%\n$347,536\n$1,064\n1.23%\n\nMoney market accounts\n487,135\n3,520\n2.90%\n460,865\n3,494\n3.04%\n\nSavings deposits\n108,158\n49\n0.18%\n110,193\n73\n0.27%\n\nTime deposits\n350,813\n2,929\n3.35%\n343,998\n3,268\n3.81%\n\nFed funds purchased\n1\n—\n0.00%\n—\n—\nNA\n\nSecurities sold under agreements to repurchase\n101,061\n566\n2.25%\n110,233\n681\n2.48%\n\nFHLB Advances\n—\n—\nNA\n—\n—\nNA\n\nOther long-term debt\n14,964\n246\n6.59%\n14,964\n269\n7.21%\n\nTotal interest-bearing liabilities\n1,605,852\n9,674\n2.42%\n1,387,789\n8,849\n2.56%\n\nDemand deposits\n529,114\n\n474,667\n\nAllowance for credit losses - unfunded commitments\n653\n\n455\n\nOther liabilities\n7,620\n\n18,208\n\nShareholders’ equity\n223,611\n\n152,097\n\nTotal liabilities and shareholders’ equity\n$2,366,850\n\n$2,033,216\n\nCost of deposits, including demand deposits\n\n1.76%\n\n1.82%\n\nCost of funds, including demand deposits\n\n1.82%\n\n1.91%\n\nNet interest spread\n\n2.82%\n\n2.48%\n\nNet interest income/margin\n\n$19,501\n3.50%\n\n$15,324\n3.19%\n\nNet interest income/margin (tax equivalent)\n\n$19,568\n3.51%\n\n$15,377\n3.21%\n\n**FIRST COMMUNITY CORPORATION**\n\n**Yields on Average Earning Assets and **\n\n**Rates on Average Interest-Bearing Liabilities**\n\n**(Dollars in thousands)**\n\nSix\nmonths ended June 30, 2026\nSix\nmonths ended June 30, 2025\n\nAverage\nInterest\nYield/\nAverage\nInterest\nYield/\n\nBalance\nEarned/Paid\nRate\nBalance\nEarned/Paid\nRate\n\nAssets\n\nEarning\nassets\n\nLoans\n$1,542,199\n$45,723\n5.98%\n$1,251,192\n$35,618\n5.74%\n\nNon-taxable\nsecurities\n43,238\n661\n3.08%\n46,571\n687\n2.97%\n\nTaxable\nsecurities\n463,599\n7,701\n3.35%\n452,297\n7,783\n3.47%\n\nInt\nbearing deposits in other banks\n178,965\n3,127\n3.52%\n148,247\n3,166\n4.31%\n\nFed\nfunds sold\n167\n2\n2.42%\n40\n1\n5.04%\n\nTotal\nearning assets\n2,228,168\n57,214\n5.18%\n1,898,347\n47,255\n5.02%\n\nCash\nand due from banks\n28,219\n\n24,868\n\nPremises\nand equipment\n29,781\n\n29,802\n\nGoodwill\nand other intangibles\n31,399\n\n15,043\n\nOther\nassets\n59,916\n\n52,866\n\nAllowance\nfor credit losses - investments\n(17)\n\n(23)\n\nAllowance\nfor credit losses - loans\n(17,998)\n\n(13,406)\n\nTotal\nassets\n$2,359,468\n\n$2,007,497\n\nLiabilities\n\nInterest-bearing\nliabilities\n\nInterest-bearing\ntransaction accounts\n$529,513\n$4,590\n1.75%\n$339,760\n$2,029\n1.20%\n\nMoney\nmarket accounts\n490,363\n7,071\n2.91%\n450,630\n6,813\n3.05%\n\nSavings\ndeposits\n106,886\n96\n0.18%\n111,624\n153\n0.28%\n\nTime\ndeposits\n349,847\n5,866\n3.38%\n338,835\n6,514\n3.88%\n\nFed\nfunds purchased\n—\n—\nNA\n1\n—\n0.00%\n\nSecurities\nsold under agreements to repurchase\n111,443\n1,230\n2.23%\n120,449\n1,494\n2.50%\n\nFHLB\nAdvances\n—\n—\nNA\n—\n—\nNA\n\nOther\nlong-term debt\n14,964\n491\n6.62%\n14,964\n538\n7.25%\n\nTotal\ninterest-bearing liabilities\n1,603,016\n19,344\n2.43%\n1,376,263\n17,541\n2.57%\n\nDemand\ndeposits\n522,072\n\n462,677\n\nAllowance\nfor credit losses - unfunded commitments\n662\n\n467\n\nOther\nliabilities\n14,104\n\n18,658\n\nShareholders’\nequity\n219,614\n\n149,432\n\nTotal\nliabilities and shareholders’ equity\n$2,359,468\n\n$2,007,497\n\nCost\nof deposits, including demand deposits\n\n1.78%\n\n1.84%\n\nCost\nof funds, including demand deposits\n\n1.84%\n\n1.92%\n\nNet\ninterest spread\n\n2.75%\n\n2.45%\n\nNet\ninterest income/margin\n\n$37,870\n3.43%\n\n$29,714\n3.16%\n\nNet\ninterest income/margin (tax equivalent)\n\n$38,024\n3.44%\n\n$29,818\n3.17%\n\nThe tables below provide a reconciliation\nof non-GAAP measures to GAAP for the periods indicated:\n\nJune 30,\nMarch 31,\nDecember 31,\nSeptember 30,\nJune 30,\n\nTangible book value per common share\n2026\n2026\n2025\n2025\n2025\n\nTangible common equity per common share (non-GAAP)\n$20.84\n$20.07\n$19.84\n$19.06\n$18.28\n\nEffect to adjust for intangible assets\n3.41\n3.43\n1.94\n1.95\n1.95\n\nBook value per common share (GAAP)\n$24.25\n$23.50\n$21.78\n$21.01\n$20.23\n\nTangible common shareholders’ equity to tangible assets\n\nTangible common equity to tangible assets (non-GAAP)\n8.37%\n8.00%\n7.47%\n7.15%\n6.92%\n\nEffect to adjust for intangible assets\n1.24%\n1.23%\n0.67%\n0.67%\n0.68%\n\nCommon equity to assets (GAAP)\n9.61%\n9.23%\n8.14%\n7.82%\n7.60%\n\nReturn on average tangible common equity\nThree months ended\nJune 30,\nThree months ended\n\nMarch 31,\nSix months ended\nJune 30,\n\n2026\n2025\n2026\n2025\n2026\n2025\n\nReturn on average tangible common equity (non-GAAP)\n15.91%\n15.18%\n12.06%\n12.31%\n14.03%\n13.78%\n\nEffect to adjust for intangible assets\n(2.29)%\n(1.50)%\n(1.72)%\n(1.26)%\n(2.01)%\n(1.39)%\n\nReturn on average common equity (GAAP)\n13.62%\n13.68%\n10.34%\n11.05%\n12.02%\n12.39%\n\nThree months ended\nSix months ended\n\nJune 30,\nMarch 31,\nJune 30,\nJune 30,\n\nPre-tax, pre-provision earnings\n2026\n2026\n2025\n2026\n2025\n\nPre-tax, pre-provision earnings (non-GAAP)\n$9,865\n$6,128\n$6,447\n$15,993\n$12,065\n\nEffect to adjust for pre-tax, pre-provision earnings\n(2,270)\n(630)\n(1,261)\n(2,900)\n(2,882)\n\nNet Income (GAAP)\n$7,595\n$5,498\n$5,186\n$13,093\n$9,183\n\nThree months ended\nSix months ended\n\nJune 30,\nMarch 31,\nJune 30,\nJune 30,\n\nNet income excluding the after-tax effect of merger expenses\n2026\n2026\n2025\n2026\n2025\n\nNet income excluding the after-tax effect of merger expenses (non-GAAP)\n$7,979\n$6,754\n$5,365\n$14,733\n$9,362\n\nEffect to adjust for the after-tax effect of merger expenses\n(384)\n(1,256)\n(179)\n(1,640)\n(179)\n\nNet Income (GAAP)\n$7,595\n$5,498\n$5,186\n$13,093\n$9,183\n\nThree months ended\nSix months ended\n\nJune 30,\nMarch 31,\nJune 30,\nJune 30,\n\nDiluted earnings\nper common share excluding the after-tax effect of merger expenses\n2026\n2026\n2025\n2026\n2025\n\nDiluted earnings per common share excluding the after-tax effect of merger expenses (non-GAAP)\n$0.84\n$0.72\n$0.69\n$1.56\n$1.20\n\nEffect to adjust for the after-tax effect of merger expenses\n(0.04)\n(0.13)\n(0.02)\n(0.17)\n(0.02)\n\nDiluted earnings per common share (GAAP)\n$0.80\n$0.59\n$0.67\n$1.39\n$1.18\n\nCertain financial information presented\nabove is determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). These\nnon-GAAP financial measures include “Tangible book value per common share,” “Tangible common shareholders’\nequity to tangible assets,” “Return on average tangible common equity,” “Pre-tax, pre-provision earnings,”\n“Net income excluding the after-tax effect of merger expenses,” “Diluted\nearnings per common share excluding the after-tax effect of merger expenses.”\n\n·“Tangible\nbook value per common share” is defined as total equity reduced by recorded intangible\nassets divided by total common shares outstanding.\n\n·“Tangible\ncommon shareholders’ equity to tangible assets” is defined as total common\nequity reduced by recorded intangible assets divided by total assets reduced by recorded\nintangible assets.\n\n·“Return\non average tangible common equity” is defined as net income on an annualized basis\ndivided by average total equity reduced by average recorded intangible assets.\n\n·“Pre-tax,\npre-provision earnings” is defined as net interest income plus non-interest income,\nreduced by non-interest expense.\n\n·“Net\nincome excluding the after-tax effect of merger expenses” is defined as net income\nplus merger expenses less income taxes on merger expenses. For purposes of our non-GAAP\nreconciliation, deductible merger expenses were tax-effected at our marginal tax rate\nof 23.84%, while non-deductible merger-related costs were tax-effected at 0%. The after-tax\nadjustment represents the combination of these two components.\n\n·“Diluted\nearnings per common share excluding the after-tax effect of merger expenses” is\ndefined as ((net income plus merger expenses less income taxes on merger expenses) divided\nby the average number of diluted shares outstanding). For purposes of our non-GAAP reconciliation,\ndeductible merger expenses were tax-effected at our marginal tax rate of 23.84%, while\nnon-deductible merger-related costs were tax-effected at 0%. The after-tax adjustment\nrepresents the combination of these two components.\n\nOur management believes\nthat these non-GAAP measures are useful because they enhance the ability of investors and management to evaluate and compare our\noperating results from period-to-period in a meaningful manner. Non-GAAP measures have limitations as analytical tools, and investors\nshould not consider them in isolation or as a substitute for analysis of the company’s results as reported under GAAP."}