FIRST COMMUNITY CORP /SC/ Segments Disclosure

Note 24—REPORTABLE SEGMENTS

The Company’s reportable segments represent the distinct product lines the Company offers and are viewed separately for strategic planning by the Bank President and CEO, who is the Chief Operating Decision Maker (CODM). The CODM regularly reviews the performance of the Company’s four reportable segments, which are detailed below:

 

·

Commercial and retail banking: The Company’s primary business is to provide deposit and lending products and services to its commercial and retail customers.

·

Mortgage Banking: This segment provides mortgage origination services for loans that will be sold to investors in the secondary market and consumer mortgage loans that will be held-for-investment. In the second quarter of 2023, management made the decision to include consumer mortgage held-for-investment loans in this segment. Prior to the second quarter of 2023, consumer mortgage loans held-for-investment were included in the Commercial and Retail Banking segment. Non-interest income for loans held-for-sale and loans held-for-investment is included in Mortgage Banking income and other income, respectively, on the income statement. The Mortgage Banking financial information presented below includes consumer mortgage loans held-for-investment for all periods presented. Beginning in 2023, a provision for credit loss, a cost of funds and other operating costs have been allocated to this segment.

·

Investment advisory and non-deposit: This segment provides investment advisory services and non-deposit products.

·

Corporate: This segment includes the parent company financial information, including interest on parent company debt and dividend income received from First Community Bank (the “Bank”).

 

To monitor the performance of the four reportable segments, the CODM reviews monthly reports for the product lines. These monthly reports include various volume metrics, as well as revenue versus budget, salaries versus budget, and net income. He uses the data reviewed to determine how to allocate future resources. 

 

Segment profit or loss reported to the CODM is segment net income, and segment assets are presented below; intersegment revenues, expenses, and eliminations are reflected in the reconciliation to consolidated results. 

 

The following tables present selected financial information for the Company’s reportable business segments for the years ended December 31, 2025, December 31, 2024 and December 31, 2023.

 

Schedule of Company’s Reportable Segment

Year ended December 31, 2025 (Dollars in thousands)		Commercial and Retail Banking				Mortgage Banking				Investment advisory and non-deposit				Corporate				Eliminations				Consolidated
Dividend and Interest Income		$	87,761			$	9,084			$	—			$	7,162			$	(6,953	)		$	97,054
Interest expense			31,141				2,820				—				1,071				—				35,032
Net interest income		$	56,620			$	6,264			$	—			$	6,091			$	(6,953	)		$	62,022
Provision for credit losses			567				203				—				—				—				770
Noninterest income			6,110				3,270				7,565				—				—				16,945
Salaries and employee benefits			23,497				3,430				3,967				1,055				—				31,949
Other noninterest expense			18,406				1,028				684				1,271				—				21,389
Total Noninterest expense		$	41,903			$	4,458			$	4,651			$	2,326			$	—			$	53,338
Net income (loss) before taxes		$	20,260			$	4,873			$	2,914			$	3,765			$	(6,953	)		$	24,859
Income tax expense (benefit)			6,320				—				—				(666	)			—				5,654
Net income (loss)		$	13,940			$	4,873			$	2,914			$	4,431			$	(6,953	)		$	19,205

Year ended December 31, 2024 (Dollars in thousands)		Commercial and Retail Banking				Mortgage Banking				Investment advisory and non-deposit				Corporate				Eliminations				Consolidated
Dividend and Interest Income		$	82,274			$	7,111			$	—			$	5,664			$	(5,627	)		$	89,422
Interest expense			33,543				2,622				—				1,217				—				37,382
Net interest income		$	48,731			$	4,489			$	—			$	4,447			$	(5,627	)		$	52,040
Provision for credit losses			351				458				—				—				—				809
Noninterest income			5,455				2,368				6,181				—				—				14,004
Salaries and employee benefits			22,321				2,975				3,373				594				—				29,263
Other noninterest expense			15,896				757				659				890				—				18,202
Total Noninterest expense		$	38,217			$	3,732			$	4,032			$	1,484			$	—			$	47,465
Net income before taxes		$	15,618			$	2,667			$	2,149			$	2,963			$	(5,627	)		$	17,770
Income tax expense (benefit)			4,390				—				—				(575	)			—				3,815
Net income		$	11,228			$	2,667			$	2,149			$	3,538			$	(5,627	)		$	13,955

 

Year ended December 31, 2023 (Dollars in thousands)		Commercial and Retail Banking				Mortgage Banking				Investment advisory and non-deposit				Corporate				Eliminations				Consolidated
Dividend and Interest Income		$	68,874			$	3,787			$	—			$	5,393			$	(5,357	)		$	72,697
Interest expense			21,478				1,140				—				1,187				—				23,805
Net interest income		$	47,396			$	2,647			$	—			$	4,206			$	(5,357	)		$	48,892
Provision for credit losses			677				452				—				—				—				1,129
Noninterest income			4,496				1,414				4,511				—				—				10,421
Salary and benefits			19,864				2,867				2,537				596				—				25,864
Other non-interest expense			15,272				610				575				823				—				17,280
Total noninterest expense		$	35,136			$	3,477			$	3,112			$	1,419			$	—			$	43,144
Net income before taxes		$	16,079			$	132			$	1,399			$	2,787			$	(5,357	)		$	15,040
Income tax expense (benefit)			3,757				—				—				(560	)			—				3,197
Net income		$	12,322			$	132			$	1,399			$	3,347			$	(5,357	)		$	11,843
(Dollars in thousands)		Commercial and Retail Banking				Mortgage Banking				Investment advisory and non-deposit				Corporate				Eliminations				Consolidated
Total Assets as of December 31, 2025		$	1,895,061			$	161,291			$	22			$	201,180			$	(199,822	)		$	2,057,732
Total Assets as of December 31, 2024		$	1,812,215			$	144,616			$	6			$	185,173			$	(183,989	)		$	1,958,021