First Community (FCCO) AI Stock Analysis

• Market Cap: $236.07M
• Dividend Yield: 2.04%
• Average Volume (3M): 34.11K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.81
• Revenue Growth: 11.59%
• EPS Growth: 42.03%
• Country: US
• Employees: 260
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.67
• Shares Outstanding: 7,689,694
• 10 Day Avg. Volume: 59,901
• 30 Day Avg. Volume: 34,106
• PEG Ratio: 0.76
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 1.86
• P/FCF Ratio: 18.70
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 4.33
• Enterprise Value/Ebitda: 8.99
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.58
• Revenue Forecast (FY): $78.31M

• Rating: 77 Outperform
• Price Target: $33.00 ▲(13.71% Upside)

First Community's overall stock score reflects strong technical indicators and positive corporate events, particularly the strategic merger and record earnings. Financial performance is solid, though increased leverage and liquidity concerns warrant monitoring. The valuation is fair, supported by a reasonable P/E ratio and dividend yield.

Positive Factors

Strategic Merger

The merger with Signature Bank enhances First Community's market presence and strategic growth, potentially increasing its competitive advantage and market share.

Record Earnings

Record earnings and expanded net interest margin indicate strong financial performance and effective cost management, supporting long-term profitability.

Revenue Growth

Consistent revenue growth reflects expanding market reach and product adoption, providing a solid foundation for future financial stability.

Negative Factors

Increased Leverage

Higher leverage increases financial risk, particularly if interest rates rise, potentially impacting cash flow and financial flexibility.

Liquidity Concerns

Low cash flow coverage ratio indicates challenges in converting income into cash, which could affect the company's ability to meet short-term obligations.

Margin Improvement Needed

While margins are healthy, improvement is needed to reach historical highs, which could enhance profitability and competitive positioning.

First Community Business Overview & Revenue Model

Company Description

First Community (FCCO) is a financial services provider focused on delivering a range of banking and financial solutions to individuals and businesses. Operating primarily in the community banking sector, FCCO offers services such as personal and business checking and savings accounts, loans, mortgages, and investment services. With a commitment to customer service and community development, First Community aims to enhance financial well-being and support local economies.

How the Company Makes Money

First Community generates revenue through various streams, primarily from interest income on loans and mortgages provided to customers. This includes personal loans, small business loans, and home mortgages, where interest payments constitute a significant portion of its earnings. Additionally, the company earns fee income from account maintenance charges, transaction fees, and other banking services. Investment services also contribute to revenue, as FCCO earns commissions and management fees for managing customer investments. Strategic partnerships with local businesses and organizations further enhance revenue opportunities through cross-promotions and co-branded services, driving customer acquisition and retention.

First Community Financial Statement Overview

Summary

First Community demonstrates solid financial health with consistent revenue growth and strong profitability margins. However, increased leverage and low operating cash flow coverage ratio suggest potential risks. Overall, the company is on a positive trajectory but should monitor debt levels and cash conversion closely.

Income Statement

First Community has shown consistent revenue growth with a TTM revenue growth rate of 3.99%. The gross profit margin remains strong at 64.82%, indicating efficient cost management. Net profit margin improved to 16.46% in the TTM, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while healthy, show room for improvement compared to historical highs.

Balance Sheet

The debt-to-equity ratio has increased to 0.98 in the TTM, indicating a higher reliance on debt financing, which could pose risks if interest rates rise. Return on equity improved to 11.65%, showcasing effective use of equity to generate profits. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Free cash flow growth has rebounded to 1.55% in the TTM, indicating recovery from previous declines. The operating cash flow to net income ratio is low, suggesting potential challenges in converting income into cash. However, the free cash flow to net income ratio is strong at 91.93%, indicating good cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	107.20M	98.53M	78.33M	58.37M	57.25M	53.77M
Gross Profit	70.89M	60.34M	53.40M	55.34M	54.68M	46.36M
EBITDA	34.13M	19.63M	16.96M	20.23M	21.56M	14.60M
Net Income	18.61M	13.96M	11.84M	14.61M	15.46M	10.10M
Balance Sheet
Total Assets	2.07B	1.96B	1.83B	1.67B	1.58B	1.40B
Cash, Cash Equivalents and Short-Term Investments	213.06M	157.60M	376.92M	369.26M	633.86M	424.86M
Total Debt	117.02M	120.72M	171.25M	158.54M	72.13M	58.99M
Total Liabilities	1.91B	1.81B	1.70B	1.55B	1.44B	1.26B
Stockholders Equity	161.57M	144.49M	131.06M	118.36M	141.00M	136.34M
Cash Flow
Free Cash Flow	10.72M	9.77M	11.15M	20.90M	57.12M	-18.13M
Operating Cash Flow	11.56M	10.87M	12.23M	22.13M	57.93M	-17.05M
Investing Cash Flow	-91.54M	-67.63M	-89.67M	-162.78M	-236.28M	-171.52M
Financing Cash Flow	102.08M	111.89M	134.74M	109.03M	182.38M	205.87M

First Community Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCCO, the sentiment is Positive. The current price of 29.02 is below the 20-day moving average (MA) of 29.82, above the 50-day MA of 28.26, and above the 200-day MA of 25.33, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 61.99 is Neutral, neither overbought nor oversold. The STOCH value of 65.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FCCO.

First Community Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCCO	77 Outperform	$236.07M	12.83	12.21%	2.04%	11.59%	42.03%
VABK	77 Outperform	$228.67M	12.85	10.41%	3.35%	1.11%	14.44%
BPRN	73 Outperform	$238.86M	13.73	6.73%	3.50%	12.92%	56.52%
CFFI	71 Outperform	$248.53M	9.49	10.89%	2.51%	8.53%	42.73%
CBNA	70 Outperform	$251.27M	13.05	13.91%	―	―	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FSFG	66 Neutral	$230.59M	9.90	12.50%	1.94%	7.65%	69.41%

First Community Corporate Events

First Community Announces 2026 Earnings Release Schedule

On December 16, 2025, First Community Corporation announced its earnings release schedule for 2026, detailing the release dates for each quarter’s earnings report. This announcement provides stakeholders with a clear timeline for financial disclosures, potentially impacting investor expectations and market activities.

First Community Announces Merger with First Community Bank

On July 13, 2025, First Community Corporation entered into a Merger Agreement with First Community Bank. This merger is expected to have significant implications for the company’s operations and industry positioning.

First Community Approves Merger with Signature Bank

On November 19, 2025, First Community Corporation held a special meeting where shareholders approved a merger agreement with Signature Bank of Georgia. This merger involves Signature Bank merging into First Community Bank, expanding the corporation’s market presence. The approval of this merger is significant for the corporation’s strategic growth, as it allows for the issuance of new shares to Signature Bank’s shareholders, thereby enhancing the company’s market positioning.

First Community Reports Record Q3 2025 Earnings

First Community Corporation reported record earnings for the third quarter of 2025, with significant expansion in net interest margin and investment advisory assets under management exceeding $1.1 billion. The company is set to acquire Signature Bank of Georgia, aiming to enhance its growth market and add SBA/GGL lines of business, reflecting its strategic initiatives to bolster its industry positioning.