First Community Corporation interim filing reports higher year-over-year diluted earnings per share and net income on both the quarter and the six-month year-to-date windows

Bottom line

- The interim filing delivered a profit on both the three-month reporting period and the six-month year-to-date period, with diluted earnings per share and net income attributable to parent both reported higher than the prior-year comparative on each window. The improvement is reported on both windows without a single driver being attributed by the filing. 67 per diluted share USD/SHARES in the prior-year comparative; net income attributable to parent was $7,595,000 USD, compared with $5,186,000 USD.

Both lines remained in profit on a year-over-year basis. 18 per diluted share USD/SHARES in the prior-year comparative; net income attributable to parent was $13,093,000 USD, compared with $9,183,000 USD. Both lines also stayed in profit on a year-over-year basis.

- This document is filed by FIRST COMMUNITY CORP /SC/ under 10-Q for period-ended-2026-06-30, with accession 0001552781-26-000438, CIK 0000932781 and ticker FCCO. The earnings-per-share computation is described in the cited earnings-per-common-share note, Note 3, and the basis-of-presentation discussion, including reclassifications that did not affect previously reported shareholders' equity or net income, is set out in Note 1. - The filing evidence does not attribute this change to any single cause.

- The result is consistent with the broader pattern reported for community-bank peers; readers comparing it to First Commonwealth Posts Higher Year-Over-Year Diluted EPS and Net Income on Both the Quarter and the Six-Month Year-to-Date Period will note that higher year-over-year diluted EPS and net income on both windows is also the headline being reported here. - The filing evidence contains no peer or industry comparison.

- Counter-evidence and unknowns: no peer comparison, segment breakdown, or revenue/expense detail is included in this section, so the size of the improvement cannot be characterised beyond the directional increase already noted, and any non-EPS, non-net-income line items referenced elsewhere in the filing (such as cash-flow categories, investment-securities disclosures under Note 4, or business-combination accounting under Note 2) are out of scope for this section.

Financial performance

- The interim report filed by FIRST COMMUNITY CORP /SC/ under 10-Q for period-ended-2026-06-30 (accession 0001552781-26-000438) presents the company's results for the six months ended June 30, 2026 alongside the comparable prior-year window of the six months ended June 30, 2025, with the three-month reporting window of the three months ended June 30, 2026 also compared against the three months ended June 30, 2025. Across both windows, the filing reports a profit on the bottom line, with Earnings Per Share, Diluted of $1.39 per diluted share USD/SHARES for the six months ended June 30, 2026, Earnings Per Share, Diluted of $0.8 per diluted share USD/SHARES for the three months ended June 30, 2026, Net Income (Loss) Attributable to Parent of $13,093,000 USD for the six months ended June 30, 2026, and Net Income (Loss) Attributable to Parent of $7,595,000 USD for the three months ended June 30, 2026. The comparable prior-period figures are $1.18 per diluted share and $0.67 per diluted share USD/SHARES, and $9,183,000 and $5,186,000 USD, respectively.

- The filing evidence authorizes a year-over-year comparison on the bottom-line metrics: Earnings Per Share, Diluted moved higher in the six months ended June 30, 2026 relative to the six months ended June 30, 2025 and remained in profit territory, and Earnings Per Share, Diluted moved higher in the three months ended June 30, 2026 relative to the three months ended June 30, 2025 and remained in profit territory. The Net Income (Loss) Attributable to Parent line moved higher in the six months ended June 30, 2026 relative to the six months ended June 30, 2025 on a profit-to-profit basis, and also moved higher in the three months ended June 30, 2026 relative to the three months ended June 30, 2025 on a profit-to-profit basis. The filing evidence does not attribute this change to any single cause.

- The accounting context for these results is framed through a series of policy and structural items disclosed within the filing. Per Note 1, the interim statements are presented on the basis of preparation described in the cited note. Note 2 documents the January business combination in which First Community Bank acquired Signature Bank of Georgia, accounted for as a business combination using the acquisition method under FASB ASC Topic guidance; the cited note also describes purchased transferable tax credits and their treatment under the Income Taxes subtopic. Note 3 sets out the computation of basic and diluted earnings per share for the periods reported. The interim filing's Parts I and II structure is anchored by Item 1 through Item 6, covering legal proceedings, risk factors, unregistered sales and use of proceeds, defaults, mine safety, legal proceedings update, market-risk disclosures, controls and procedures, and exhibits.

- For the comparison baselines used by readers of this section, no peer or industry comparison is provided in the filing evidence, so any cross-issuer context must come from outside this filing: The filing evidence contains no peer or industry comparison.. Readers seeking comparable bottom-line patterns from other community-bank filings referenced in the broader Lizely coverage can review the First Commonwealth Posts Higher Year-Over-Year Diluted EPS and Net Income on Both the Quarter and the Six-Month Year-to-Date Period insight, which sits alongside this issuer's reporting window without supplying a quantitative benchmark.

- No forward guidance, management outlook, or quantified expectation for upcoming periods is contained in the filing evidence for this section; the filing's MD&A discussion is not in scope here, and the cited notes do not include any forecast or target framing that would allow a directional reader-facing expectation to be stated.

Operating drivers and segments

- The filing's segment footnote assigns goodwill from the cited acquisition between two reporting units: a Government Guaranteed Lending segment and a Commercial and Retail Banking segment, with the larger portion going to the Commercial and Retail Banking reporting unit based on the language "of the … million in goodwill arising from the acquisition, … million was assigned to the Government Guaranteed Lending segment and … million was assigned to the Commercial and Retail Banking segment." No segment-level income, margin, or expense figures appear in the filing evidence, so segment profitability, net interest margin, and expense ratios cannot be assessed from this section. - The cited segment note is the only segment reference in the filing text; it does not provide separate revenue, expense, or pre-tax income lines for either reporting unit, and the underlying earnings release that would normally disclose community-bank segment economics is not part of the filing evidence. - Counter-evidence and unknowns: there is no peer or industry comparison, no segment trend over multiple periods, and no allocation of overhead or funding cost to the segments. The filing evidence contains no peer or industry comparison.

- Management frames the interim period as ordinarily unrepresentative of the full year, stating that results of operations for the three and six months ended June (omitted) are not necessarily indicative of the results that may be expected for the year ending December (omitted), and that all adjustments necessary to state fairly the consolidated financial position and consolidated results of operations have been made per the instructions for Quarterly Reports on Form 10-Q. - Management describes acquired loans as accounted for at fair value as of the acquisition date using the gross-up method, with the difference between fair value and unpaid principal balance amortized or accreted to interest income over the life of the loan; acquired loans relate to the Signature Bank of Georgia acquisition discussed in the cited note on Business Combinations. - Management also notes that certain previously issued financial statements have been reclassified to conform to the current presentation, with no effect on previously reported shareholders' equity or net income. - Where the filing evidence cannot support a cause, the filing evidence does not attribute this change to any single cause.

Independent analysis of what the ledger supports: - The source record for this section contains only four figures, each a Net Income (Loss) Attributable to Parent print: prior-year six-month, prior-year quarter, current six-month, and current quarter. Both the current quarter and the current six-month period are reported as profit, and the prior-year comparables are also reported as profit, so the profit-to-profit transition is preserved on both windows. - The authorized direction for Net Income (Loss) Attributable to Parent is increase on both the the three months ended June 30, 2026 versus the three months ended June 30, 2025 comparison and the the six months ended June 30, 2026 versus the six months ended June 30, 2025 comparison; the catalog also authorizes an increase direction for Diluted EPS on both windows, again profit to profit. - No driver statement is permitted in this section's voice. Any narrative about why net income moved, how net interest margin behaved, what the tax rate did, or how the Government Guaranteed Lending segment versus the Commercial and Retail Banking segment contributed to the bottom line is unsupported by the filing evidence and is therefore not written here; the filing evidence does not attribute this change to any single cause. - The Note 1 disclosure on basis of presentation, the Note 2 disclosure on Business Combinations, and the Note 3 disclosure on Earnings Per Common Share are the only references cited in the narrative; the upstream segment economics, deposit-cost trends, loan-mix shifts, and provisioning detail needed for a full driver analysis are not in the filing evidence and are not narrated here.

Cash flow and capital

The interim report issued by FIRST COMMUNITY CORP /SC/ under 10-Q for period-ended-2026-06-30 (accession 0001552781-26-000438) presents a year-to-date cash-flow snapshot across the six months ending the six months ended June 30, 2026, alongside its prior-year comparative the six months ended June 30, 2025.

**Reported facts** - Operating activities flipped from a positive reading of $6,534,000 in the prior-year window to a cash outflow of -$4,558,000 for the current six-month period. - Investing activities remained in cash-outflow territory in both windows, moving from -$49,460,000 to -$27,967,000. - Financing activities continued to be a source of cash, with $33,648,000 against the prior-year comparative of $76,566,000. - Capital expenditure cash outflows are shown as Payments to Acquire Property, Plant, and Equipment of $418,000 for the prior period and $332,000 for the current six-month period. - Ordinary common-stock dividend payments are reported as $2,296,000 in the prior window and $2,993,000 for the current window.

**Management explanations** The filing's narrative does not directly walk readers through the cash-flow statement; instead, it focuses on the SGBG acquisition (described in Note 2) and on the early-adopted purchased-loan amendments to the credit-loss standard. Management characterises both as not having a significant impact on financial position, results of operations or cash flows, but the cited discussion does not connect those topics to specific line items on the cash-flow statement. Capital-allocation context (the SGBG share-and-cash consideration, preliminary fair-value allocations, and the goodwill split between the Government Guaranteed Lending and Commercial and Retail Banking segments) appears in the business-combination narrative rather than in a capital-management discussion.

**Analyst inference** With the catalog authorising only qualitative comparisons, the operating swing is best described as a transition from a cash inflow to a cash outflow, financing as a smaller positive source of cash relative to the prior-year comparative, investing outflows as somewhat larger in magnitude, dividend payments as higher, and property, plant, and equipment outlays as somewhat lower. Those directional reads are consistent with the machine-authorised comparison set and do not require any digits.

**Counter-evidence** The filing does not separately reconcile operating cash to net income, does not disclose free cash flow, and does not present a stand-alone liquidity discussion. Readers looking for funding sources, debt issuance or repayment, or share-repurchase activity will not find them in the excerpts supplied for this section.

**Unknowns** The filing evidence does not attribute this change to any single cause. The filing evidence contains no peer or industry comparison.

For context on how a peer institution framed its interim results across the same reporting windows, see First Community Bankshares posts higher profit on both reporting windows of interim filing.

Peer and historical context

- Profitability strengthened on both reported windows. Net income attributable to parent was $7,595,000 in the current quarter and $5,186,000 in the prior-year quarter. For the year-to-date comparison, the current result was $13,093,000, versus $9,183,000. The filing evidence therefore supports higher earnings across the quarter and the six-month period, although the magnitude of the improvement is not supplied here. - The pattern aligns qualitatively with a broader banking comparison summarized in the related analysis of First Commonwealth’s higher year-over-year diluted earnings per share and net income. That peer-style comparison shows a similar earnings direction, but it does not provide enough matched company, market, or reporting details to establish relative performance. - Cash generation moved in the opposite direction. Operating cash flow was $6,534,000 in the prior-year year-to-date period, while the current six-month result was -$4,558,000. This indicates a shift from positive operating cash flow to negative operating cash flow, despite the higher net income result. - The acquisition discussion identifies expected market-share benefits and synergies from combining the operations of First Community Bank and SGBG. Those expectations provide strategic context for the comparison, but the filing excerpt does not quantify their contribution to current earnings or cash flow. - Higher accounting earnings do not coincide with stronger operating cash flow. The current year-to-date net income result remained positive, while operating cash flow was negative. This divergence cautions against treating the earnings improvement alone as evidence of stronger cash conversion. - Preliminary acquisition accounting remains subject to revision during the measurement period. Final valuations for certain acquired assets and liabilities may therefore affect future reported results and complicate comparisons with periods that do not share the same acquisition context. - The filing evidence contains no peer or industry comparison. - The filing evidence does not attribute this change to any single cause.

The filing’s current-quarter and year-to-date net income figures can be compared directly with their respective prior-year results, and both comparisons show improvement. The cash-flow comparison is less favorable: the current six-month operating result was negative, whereas the prior-year comparative was positive. Consequently, the historical record presents stronger profitability alongside weaker operating cash generation, without establishing which operational or acquisition-related factors produced either movement.

The related First Commonwealth analysis offers a useful directional banking-sector reference because it likewise describes higher year-over-year net income on the quarter and six-month year-to-date windows. However, the filing evidence contains no standardized peer set, industry benchmarks, asset-size comparison, or matched operating metrics. No conclusion can therefore be drawn about whether First Community outperformed or underperformed relevant banking peers.

Scenario analysis

For the three-month reporting period, net income attributable to the parent was $7,595,000, compared with the prior-year figure of $5,186,000, with the authorized comparison reading as a year-over-year increase and a profit-to-profit transition.

For the six-month year-to-date period, net income attributable to the parent was $13,093,000, compared with $9,183,000 for the prior-year comparative window, again with the authorized comparison reading as a year-over-year increase and a profit-to-profit transition.

Because the only available fact set for this section is the four net income values themselves, every conditional scenario below is grounded exclusively in those figures and in the qualitative direction language authorized above. No revenue, expense, balance sheet, allowance, or tax line is in the catalog, so any driver narrative would have to come from the machine; this section keeps that boundary intact and writes the causality placeholder where a cause would otherwise be implied.

Base scenario. Under a base-case reading, the company simply continues the trajectory visible across both windows of the filing: profit on the three-month reporting period is higher than the prior-year comparative, and profit on the six-month year-to-date period is likewise higher than the prior-year comparative, with both periods remaining profitable rather than flipping to a loss. Because no segment detail, peer benchmark, or non-net-income fact is supplied for this filing, the base scenario is described only by the continuity of these two year-over-year improvements and by the absence of any disclosed break in the profit-to-profit transition. Any attribution of the gap to interest income, merger expense, credit cost, or tax would be unsupported here.

Upside scenario. The upside case is anchored by the same two facts, but read more optimistically: the year-over-year increases in $7,595,000 versus $5,186,000 and in $13,093,000 versus $9,183,000 are treated as a durable shift rather than a one-off, on the assumption that whatever combination of acquisition-related and organic drivers produced them persists into the next reporting window. Without a revenue figure, an expense figure, or a non-interest income line in this section's catalog, the upside scenario cannot be quantified; it is presented only as the qualitative extension of the authorized profit-to-profit increase on both windows.

Downside scenario. The downside case reflects the asymmetry of the available evidence: both comparisons are authorized only as increases, never as decreases, so a documented reversal in earnings is not supported by this filing. The downside is therefore framed not as a known contraction but as the risk that the two reported profits do not extend, leaving future periods flat or lower than the prior-year comparatives of $5,186,000 and $9,183,000. Any narrative tying the downside to credit deterioration, funding cost, or integration drag would require facts that this section does not carry.

Across all three scenarios, the same evidentiary floor applies: net income attributable to the parent on both the quarter and the six-month year-to-date period is positive and higher than the corresponding prior-year comparative. The filing evidence does not attribute this change to any single cause. The filing evidence does not disclose segment-level detail for this dimension. The filing evidence contains no peer or industry comparison. Readers looking for a comparable community-bank pattern can review First Community Bankshares posts higher profit on both reporting windows of interim filing for parallel reporting-window context, noting that any cross-issuer comparison falls outside this filing's own evidence base.

Risks and what to watch

- Reported facts: Parent-attributable net income was higher year over year in both reporting windows. The latest quarter recorded $7,595,000, compared with $5,186,000 in the prior-year quarter. The latest six-month period recorded $13,093,000, compared with $9,183,000 in the prior-year six-month period.

Both comparisons remained profitable. - Management explanations: Management said that the acquired operations of SGBG were included in consolidated results beginning on the acquisition date. Transaction costs were expensed as incurred, while additional transaction and integration costs will be expensed in future periods as incurred.

Management also said that the unaudited pro forma presentation was theoretical and not necessarily indicative of future consolidated results. - Analyst inference: The simultaneous improvement in quarterly and year-to-date profitability is positive, but it does not establish whether the improvement is durable after acquisition-related expenses, integration activity, funding costs, amortization, and normal operating variability. The filing’s acquisition discussion identifies several items that could affect comparability, including acquisition-related adjustments, amortization of intangibles, merger expenses, and related income-tax effects.

The reported comparison should therefore be read alongside the business-combination disclosure rather than as a clean standalone measure of recurring performance. - Counter-evidence: The pro forma information excludes possible business-model changes, current market conditions, revenue enhancements, expense efficiencies, and other factors. It also does not necessarily represent what consolidated results would have been had SGBG been acquired at the beginning of the earlier period.

These limitations weaken the usefulness of pro forma results for assessing ongoing profitability. In addition, the stated future expensing of transaction and integration costs indicates that reported earnings may continue to include acquisition-related volatility. - Unknowns: The filing evidence does not provide enough detail to separate the contribution of acquired operations from organic performance, or to identify the relative effects of interest income, securities income, deposit costs, intangible amortization, operating expenses, and tax items.

The filing evidence does not attribute this change to any single cause. - The next period’s most informative indicators are the persistence of parent-attributable profitability in both the quarter and year-to-date views, the trajectory of transaction and integration costs, the effect of amortization arising from the acquisition, and the degree to which the acquired deposit and lending relationships translate into recurring earnings. Readers may compare the pattern with First Community Bankshares posts higher profit on both reporting windows of interim filing, while recognizing that the filing evidence contains no direct peer or industry comparison.

The filing evidence contains no peer or industry comparison. - The investment-securities note remains relevant for monitoring valuation and portfolio risk, but the provided evidence does not establish a direct link between those items and the reported net-income change. The next filing should also clarify whether acquisition-related adjustments become less material and whether the acquired operations continue to support stable revenue, funding, expense, and credit performance.

The filing evidence does not disclose segment-level detail for this dimension.