LEXINGTON, S.C., Oct. 20, 2021 /PRNewswire/ --
Highlights for Third Quarter of 2021
- Net income of $4.748 million, an
increase of 79.0% year-over-year and 34.0% linked quarter.
- Pre-tax pre-provision earnings of $6.115
million, up 41.8% year-over year and 32.0% linked
quarter.
- Diluted EPS of $0.63 per common
share for the quarter and $1.53
year-to-date through September 30,
2021.
- Total loans, excluding Paycheck Protection Program or PPP
loans, increased during the third quarter by $41.3 million, an annualized growth rate of
19.9%.
- Pure deposit growth, including customer cash management, during
the third quarter of $44.7 million,
an annualized growth rate of 14.6%.
- Investment advisory line of business revenue of $1.040 million, an increase of 54.8%
year-over-year and 8.7% linked quarter.
- Net interest margin on a tax equivalent basis including PPP
loans of 3.47%, excluding PPP loans 3.08%
- Strong credit quality metrics with non-performing assets (NPAs)
ratio of 0.10%, past due ratio of 0.03% and net loan recovery
excluding overdrafts of $354 thousand
during the third quarter, with a year-to-date net recovery of
$259 thousand.
- Cash dividend of $0.12 per common
share, which is the 79th consecutive quarter of cash
dividends paid to common shareholders.
Today, First Community Corporation (Nasdaq: FCCO), the
holding company for First Community Bank, reported net income for
the third quarter of 2021 of $4.748
million as compared to $2.652
million in the third quarter of 2020, an increase of
79.0%. Diluted earnings per common share were $0.63 for the third quarter of 2021 as compared
to $0.35 for the third quarter of
2020. On a linked quarter basis, net income increased 34.0% from
$3.543 million in the second quarter
of 2021 and diluted earnings per common share increased from
$0.47. Pre-tax pre-provision
earnings or PTPPE in the third quarter of 2021 were $6.115 million compared to third quarter of 2020
PTPPE of $4.312 million and second
quarter 2021 PTPPE of $4.632 million,
an increase of 41.8% and 32.0% respectively.
Year-to-date through September 30,
2021 net income was $11.546
million compared to $6.663
million during the first nine months of 2020. Diluted
earnings per share for the first nine months of 2021 were
$1.53, compared to $0.89 during the same time period in 2020.
Year-to-date through September
30, 2021 PTPPE were $15.070
million compared to $11.618
million during the first nine months of 2020, an increase of
29.7%.
Cash Dividend and Capital
The Board of Directors approved a cash dividend for the third
quarter of 2021. The company will pay a $0.12 per share dividend to holders of the
company's common stock. This dividend is payable November 16, 2021 to shareholders of record as of
November 2, 2021. Mike Crapps, First Community President and CEO,
commented, "Our entire board is pleased that our performance
enables the company to continue its cash dividend for the
79th consecutive quarter."
On April 12, 2021, the Company
announced that its Board of Directors approved the repurchase of up
to 375,000 shares of its common stock, which represents
approximately 5% of the Company's 7,540,332 shares outstanding as
of September 30, 2021.
Under the repurchase plan, the Company may repurchase shares from
time to time. No share repurchases have been made under the
plan as of September 30, 2021.
Mr. Crapps noted, "This approved share repurchase plan provides us
with some flexibility in managing capital going
forward."
Each of the regulatory capital ratios for the bank exceed the
well capitalized minimum levels currently required by regulatory
statute. At September 30, 2021,
the bank's regulatory capital ratios (Leverage, Tier I Risk Based
and Total Risk Based) were 8.56%, 13.58%, and 14.74%,
respectively. This compares to the same ratios as of
September 30, 2020 of 8.95%, 12.96%,
and 14.08%, respectively. As of September
30, 2021, the bank's Common Equity Tier I ratio was 13.58%
compared to 12.96% at September 30,
2020. Further, the company's Tangible Common Equity to
Tangible Assets ratio was 8.00% as of September 30, 2021 compared to 8.60% as of
September 30, 2020.
Asset Quality / Allowance for Loan and Lease
Losses
Asset quality metrics remained extremely strong as of
September 30, 2021. The
non-performing assets ratio for the third quarter was 0.10% of
total assets and a total past due ratio of 0.03%. Net loan
recoveries excluding overdrafts for the quarter were $354 thousand and the year-to-date through
September 30, 2021 net recovery was
$259 thousand. The ratio of
classified loans plus OREO now stands at 6.5% of total bank
regulatory risk-based capital as of September 30, 2021. The one large loan
relationship previously discussed as negatively impacting these
metrics was resolved during the quarter.
Balance Sheet
Total loans, excluding PPP loans, increased during the third
quarter by $41.3 million which is an
annualized growth rate of 19.9%. Non-PPP loan growth during
the third quarter was the result of increased production and
manageable levels of payoffs on a linked quarter basis.
Commercial loan production was $70.5
million during the third quarter of 2021 compared to
$61.1 million in the second quarter
of 2021 and $46.1 million in the
third quarter of 2020.
As of September 30, 2021, the bank
had remaining $9.1 million in PPP
loans and an additional $1.8 million
in a related credit facility on the balance sheet. Mr. Crapps
noted, "As a community bank committed to the success of local
businesses, we were pleased to be able to support our customers
with access to the PPP funding. We are now working with our
customers through the SBA forgiveness process with $38.1 million forgiven in the third quarter of
this year. By year end, we expect the remaining PPP loan
portfolio on our balance sheet to be immaterial."
Total deposits were $1.334 billion
at September 30, 2021 compared to
$1.290 billion at June 30, 2021. Pure deposits, which are
defined as total deposits less certificates of deposits, increased
$45.4 million or 3.9% to $1.208 billion at September 30, 2021 from $1.162 billion at June
30, 2021. Securities sold under agreements to
repurchase, which are related to customer cash management accounts
or business sweep accounts, were $59.8
million at September 30, 2021,
down slightly from $60.5 million at
June 30, 2021. Costs of
deposits decreased on a linked quarter basis to 0.12% in the third
quarter of 2021 from 0.14% in the second quarter of the year.
Cost of funds also decreased on a linked quarter basis to 0.15% in
the third quarter of 2021 from 0.17% in the second quarter of the
year. Mr. Crapps commented, "A strength of our bank has been
and continues to be our low-cost deposit base. During 2021,
we have continued to grow pure deposits while at the same time
working to reduce our cost of deposits."
Revenue
Net Interest Income/Net Interest Margin
Net interest income increased $1.364
million or 12.3% to $12.456
million for the third quarter of 2021 compared to second
quarter net interest income of $11.092
million. Year-over-year, net interest income increased
$2.280 million or 22.4% from
$10.176 million in the third quarter
of 2020. Third quarter net interest margin, on a tax
equivalent basis, was 3.47% compared to net interest margin of
3.20% in the second quarter. Third quarter net interest
margin, excluding PPP loans, on a tax equivalent basis, was 3.08%
compared to 3.11% in the second quarter. During the
third quarter of 2021, the bank benefitted from $1.561 million in accretion of net deferred PPP
loan fees due to the previously referenced reduction in PPP
loans. Additionally, primarily due to the resolution of the
previously mentioned loan relationship, the bank collected interest
income of approximately $140 thousand
this quarter.
Non-Interest Income
Total non-interest income increased 13.7% on a linked quarter
basis, to $3.564 million in the third
quarter of 2021 from $3.418 million
in the second quarter. In the third quarter, the bank
benefitted from other non-recurring non-interest income of
$47 thousand from the collection of a
summary judgment related to a loan charged off at a bank, which the
company subsequently acquired. Year-over-year, non-interest
income, adjusted for securities gains and losses and other
non-recurring income, increased 2.2% from $3.440 million in the third quarter of
2020.
Revenues in the mortgage line of business were basically flat on
a linked quarter basis at $1.147
million in the third quarter compared to $1.143 million in the second quarter of the year
and down 18.2% year-over-year. Mortgage loan production
decreased 4.5 % on a linked quarter and 43.3% year-over-year
largely due to a large decrease in the number of refinance
loans. Improvements in the gain-on-sale margin helped
offset the lower production volume.
Revenue in the investment advisory line of business increased
54.8% year-over-year and 8.7% on a linked quarter with $1.040 million in the third quarter of 2021
compared to $672 thousand in the
third quarter of 2020 and $957
thousand in the second quarter of 2021. Assets under
management (AUM), were $588.6 million
at September 30, 2021 up from
$577.5 million at June 30, 2021 and $501.0
million at December 31,2020. Mr. Crapps commented,
"Our strategy of multiple revenue streams continues to serve us
well as we focus our efforts to accelerate growth in these lines of
business. We are pleased with the activity and momentum in
each of our business units."
Non-Interest Expense
Non-interest expense was $9.905
million in the third quarter of 2021, up just $27 thousand over the second quarter of
2021. As expected, Other expense, which was higher in the
second quarter of the year due to some non-recurring expenses
including legal fees associated with a loan relationship, was down
$299 thousand on a linked quarter
basis. During the third quarter, the bank received
reimbursement of $153 thousand of
these legal fees paid in the second quarter due to the resolution
of the loan relationship. Salaries and benefits expense
increased $446 thousand on a linked
quarter basis, with nearly all of the increase attributable to two
items, increased incentive plan accruals related to higher
performance and results year-to-date and a lower credit for
deferred loan costs in the third quarter. Marketing and
public relations expense decreased $173
thousand due to a lighter media schedule during the summer
months. FDIC insurance expense increased $43 thousand due to a higher assessment base and
a higher assessment rate related to a decrease in the bank's
leverage ratio due to an increase in assets.
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 series, residential mortgage lending and
financial planning/investment advisory services for businesses and
consumers. First Community serves customers in the
Midlands, Aiken, and Greenville, South Carolina markets as well as
Augusta, 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" or other statements
that indicate future periods. Such forward-looking statements
are subject to risks, uncertainties, and other factors which could
cause actual results to differ materially from future results
expressed or implied by such forward-looking statements. Such
risks, uncertainties and other factors, include, among others, the
following: (1) competitive pressures among depository and other
financial institutions may increase significantly and have an
effect on pricing, spending, third-party relationships and
revenues; (2) 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 including, but not limited to, due to the negative impacts
and disruptions resulting from the outbreak of the novel
coronavirus, or COVID-19, on the economies and communities we
serve, which has had and may continue to have an adverse impact on
our business, operations, and performance, and could continue to
have a negative impact on our credit portfolio, share price,
borrowers, and on the economy as a whole both domestically and
globally; (3) the rate of delinquencies and amounts of charge-offs,
the level of allowance for loan 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; (4)
changes in legislation, regulation, policies or administrative
practices, whether by judicial, governmental, or legislative
action, (5) adverse conditions in the stock market, the public debt
markets and other capital markets (including changes in interest
rate conditions) could have a negative impact on the company; (6)
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; and (7)
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.
FIRST COMMUNITY
CORPORATION
|
|
|
|
|
BALANCE SHEET
DATA
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
As of
|
|
|
|
September
30,
|
June 30,
|
December
31,
|
September
30,
|
|
|
|
2021
|
2021
|
2020
|
2020
|
|
|
|
|
|
|
|
Total
Assets
|
|
|
$
1,560,326
|
$
1,514,973
|
$
1,395,382
|
$
1,381,804
|
Other
Short-term Investments and CD's1
|
|
55,259
|
52,316
|
46,062
|
106,231
|
Investment
Securities
|
|
|
515,260
|
470,669
|
361,919
|
295,525
|
Loans Held for
Sale
|
|
|
6,213
|
11,416
|
45,020
|
37,587
|
Loans
|
|
|
|
|
|
|
Paycheck Protection Program
(PPP) Loans
|
|
9,109
|
47,229
|
42,242
|
49,799
|
Non-PPP Loans
|
|
|
872,411
|
831,089
|
801,915
|
794,661
|
Total
Loans
|
|
|
881,520
|
878,318
|
844,157
|
844,460
|
Allowance for
Loan Losses
|
|
|
11,025
|
10,638
|
10,389
|
10,113
|
Goodwill
|
|
|
14,637
|
14,637
|
14,637
|
14,637
|
Other
Intangibles
|
|
|
959
|
1,011
|
1,120
|
1,188
|
Total
Deposits
|
|
|
1,333,568
|
1,289,883
|
1,189,413
|
1,173,551
|
Securities
Sold Under Agreements to Repurchase
|
|
59,821
|
60,487
|
40,914
|
47,142
|
Federal Home
Loan Bank Advances
|
|
-
|
-
|
-
|
-
|
Junior
Subordinated Debt
|
|
|
14,964
|
14,964
|
14,964
|
14,964
|
Shareholders'
Equity
|
|
|
139,113
|
137,927
|
136,337
|
133,244
|
|
|
|
|
|
|
|
Book Value Per
Common Share
|
|
|
$
18.44
|
$
18.29
|
$
18.18
|
$
17.78
|
Tangible Book
Value Per Common Share
|
|
$
16.37
|
$
16.22
|
$
16.08
|
$
15.67
|
Equity to
Assets
|
|
|
8.92%
|
9.10%
|
9.77%
|
9.64%
|
Tangible
Common Equity to Tangible Assets
|
|
8.00%
|
8.16%
|
8.74%
|
8.60%
|
Loan to
Deposit Ratio (Includes Loans Held for Sale)
|
66.57%
|
68.98%
|
74.76%
|
75.16%
|
Loan to
Deposit Ratio (Excludes Loans Held for Sale)
|
66.10%
|
68.09%
|
70.97%
|
71.96%
|
Allowance for
Loan Losses/Loans
|
|
|
1.25%
|
1.21%
|
1.23%
|
1.20%
|
|
|
|
|
|
|
|
Regulatory Capital
Ratios (Bank):
|
|
|
|
|
|
|
Leverage
Ratio
|
|
|
8.56%
|
8.48%
|
8.84%
|
8.95%
|
Tier 1 Capital
Ratio
|
|
|
13.58%
|
13.52%
|
12.83%
|
12.96%
|
Total Capital
Ratio
|
|
|
14.74%
|
14.66%
|
13.94%
|
14.08%
|
Common Equity
Tier 1 Capital Ratio
|
|
13.58%
|
13.52%
|
12.83%
|
12.96%
|
Tier 1
Regulatory Capital
|
|
|
$
129,741
|
$
125,732
|
$
120,385
|
$
117,700
|
Total
Regulatory Capital
|
|
|
$
140,766
|
$
136,370
|
$
130,774
|
$
127,813
|
Common Equity
Tier 1 Capital
|
|
|
$
129,741
|
$
125,732
|
$
120,385
|
$
117,700
|
|
|
|
|
|
|
|
1 Includes
federal funds sold, securities sold under agreement to resell and
interest-bearing deposits
|
|
|
|
|
|
|
|
Average
Balances:
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
|
|
|
|
|
Average Total
Assets
|
|
$
1,542,820
|
$
1,345,109
|
|
$
1,495,657
|
$
1,263,865
|
Average Loans
(Includes Loans Held for Sale)
|
893,888
|
868,096
|
|
891,987
|
815,724
|
Average
Earning Assets
|
|
1,440,961
|
1,248,607
|
|
1,395,123
|
1,165,980
|
Average
Deposits
|
|
1,312,565
|
1,136,977
|
|
1,268,965
|
1,055,778
|
Average Other
Borrowings
|
|
77,840
|
63,312
|
|
77,179
|
67,504
|
Average
Shareholders' Equity
|
|
140,404
|
131,737
|
|
137,087
|
127,388
|
|
|
|
|
|
|
|
Asset
Quality:
|
|
As
of
|
|
|
September
30,
|
June 30,
|
March 30,
|
December
31,
|
September
30,
|
|
|
2021
|
2021
|
2021
|
2020
|
2020
|
Loan Risk Rating by
Category (End of Period)
|
|
|
|
|
|
Special
Mention
|
|
$
2,851
|
$
3,085
|
$
3,507
|
$
7,757
|
$
4,977
|
Substandard
|
|
7,992
|
11,707
|
12,136
|
7,810
|
5,082
|
Doubtful
|
|
-
|
-
|
-
|
-
|
-
|
Pass
|
|
870,677
|
863,526
|
853,423
|
828,590
|
834,401
|
|
|
$
881,520
|
$
878,318
|
$
869,066
|
$
844,157
|
$
844,460
|
Nonperforming
Assets
|
|
|
|
|
|
|
Non-accrual
Loans
|
|
$
359
|
$
3,986
|
$
4,521
|
$
4,562
|
$
1,656
|
Other Real
Estate Owned and Repossessed Assets
|
1,165
|
1,182
|
1,076
|
1,201
|
1,313
|
Accruing Loans
Past Due 90 Days or More
|
-
|
4,165
|
-
|
1,260
|
34
|
Total Nonperforming
Assets
|
|
$
1,524
|
$
9,333
|
$
5,597
|
$
7,023
|
$
3,003
|
Accruing Trouble Debt
Restructurings
|
$
1,474
|
$
1,510
|
$
1,515
|
$
1,552
|
$
1,568
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2021
|
2020
|
|
2021
|
2020
|
Loans
Charged-off
|
|
$
-
|
$
8
|
|
$
127
|
$
24
|
Overdrafts
Charged-off
|
|
20
|
17
|
|
39
|
49
|
Loan
Recoveries
|
|
(354)
|
(126)
|
|
(386)
|
(146)
|
Overdraft
Recoveries
|
|
(4)
|
(14)
|
|
(23)
|
(26)
|
Net Charge-offs
(Recoveries)
|
|
$
(338)
|
$
(115)
|
|
$
(243)
|
$
(99)
|
Net Charge-offs to
Average Loans2
|
|
-0.15%
|
-0.05%
|
|
-0.04%
|
-0.02%
|
2
Annualized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST COMMUNITY
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME STATEMENT
DATA
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
September
30,
|
|
June 30,
|
|
March 31,
|
|
September
30,
|
|
|
|
2021
|
2020
|
|
2021
|
2020
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
12,982
|
$
10,976
|
|
$
11,664
|
$
10,666
|
|
$
11,218
|
$
10,710
|
|
$
35,864
|
$
32,352
|
|
Interest
expense
|
|
526
|
800
|
|
572
|
923
|
|
651
|
1,293
|
|
1,749
|
3,016
|
|
Net interest
income
|
|
12,456
|
10,176
|
|
11,092
|
9,743
|
|
10,567
|
9,417
|
|
34,115
|
29,336
|
|
Provision for
loan losses
|
|
49
|
1,062
|
|
168
|
1,250
|
|
177
|
1,075
|
|
394
|
3,387
|
|
Net interest
income after provision
|
|
12,407
|
9,114
|
|
10,924
|
8,493
|
|
10,390
|
8,342
|
|
33,721
|
25,949
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit service charges
|
|
257
|
242
|
|
212
|
210
|
|
246
|
399
|
|
715
|
851
|
|
Mortgage banking income
|
|
1,147
|
1,403
|
|
1,143
|
1,572
|
|
990
|
982
|
|
3,280
|
3,957
|
|
Investment advisory fees and non-deposit commissions
|
1,040
|
672
|
|
957
|
671
|
|
877
|
634
|
|
2,874
|
1,977
|
|
Gain (loss) on sale of securities
|
|
-
|
99
|
|
-
|
-
|
|
-
|
-
|
|
-
|
99
|
|
Gain (loss) on sale of other assets
|
|
13
|
141
|
|
-
|
-
|
|
77
|
6
|
|
90
|
147
|
|
Non-recurring BOLI income
|
|
-
|
311
|
|
-
|
-
|
|
-
|
-
|
|
-
|
311
|
|
Other non-recurring income
|
|
47
|
-
|
|
-
|
-
|
|
100
|
|
|
147
|
|
|
Other
|
|
1,060
|
982
|
|
1,106
|
934
|
|
1,006
|
907
|
|
3,172
|
2,823
|
|
Total
non-interest income
|
|
3,564
|
3,850
|
|
3,418
|
3,387
|
|
3,296
|
2,928
|
|
10,278
|
10,165
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
6,394
|
6,087
|
|
5,948
|
5,840
|
|
5,964
|
5,653
|
|
18,306
|
17,580
|
|
Occupancy
|
|
743
|
736
|
|
734
|
679
|
|
730
|
643
|
|
2,207
|
2,058
|
|
Equipment
|
|
336
|
318
|
|
338
|
298
|
|
275
|
318
|
|
949
|
934
|
|
Marketing and public relations
|
|
140
|
342
|
|
313
|
247
|
|
396
|
354
|
|
849
|
943
|
|
FDIC assessment
|
|
189
|
137
|
|
146
|
88
|
|
169
|
42
|
|
504
|
267
|
|
Other real estate expenses
|
|
58
|
79
|
|
55
|
40
|
|
29
|
35
|
|
142
|
154
|
|
Amortization of intangibles
|
|
52
|
95
|
|
52
|
95
|
|
57
|
105
|
|
161
|
295
|
|
Other
|
|
1,993
|
1,920
|
|
2,292
|
1,844
|
|
1,920
|
1,888
|
|
6,205
|
5,652
|
|
Total
non-interest expense
|
|
9,905
|
9,714
|
|
9,878
|
9,131
|
|
9,540
|
9,038
|
|
29,323
|
27,883
|
|
Income before
taxes
|
|
6,066
|
3,250
|
|
4,464
|
2,749
|
|
4,146
|
2,232
|
|
14,676
|
8,231
|
|
Income tax
expense
|
|
1,318
|
598
|
|
921
|
532
|
|
891
|
438
|
|
3,130
|
1,568
|
|
Net
income
|
|
$
4,748
|
$
2,652
|
|
$
3,543
|
$
2,217
|
|
$
3,255
|
$
1,794
|
|
$
11,546
|
$
6,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income,
basic
|
|
$
0.63
|
$
0.36
|
|
$
0.47
|
$
0.30
|
|
$
0.44
|
$
0.24
|
|
$
1.54
|
$
0.90
|
|
Net income,
diluted
|
|
$
0.63
|
$
0.35
|
|
$
0.47
|
$
0.30
|
|
$
0.43
|
$
0.24
|
|
$
1.53
|
$
0.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number
of shares outstanding - basic
|
7,498,832
|
7,457,750
|
|
7,485,625
|
7,435,933
|
|
7,475,522
|
7,427,257
|
|
7,486,746
|
7,440,376
|
|
Average number
of shares outstanding - diluted
|
7,555,998
|
7,481,568
|
|
7,537,179
|
7,465,212
|
|
7,522,568
|
7,472,956
|
|
7,540,332
|
7,474,906
|
|
Shares
outstanding period end
|
|
7,544,374
|
7,492,908
|
|
7,539,587
|
7,486,151
|
|
7,524,944
|
7,462,247
|
|
7,544,374
|
7,492,908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets
|
|
1.22%
|
0.78%
|
|
0.94%
|
0.70%
|
|
0.92%
|
0.61%
|
|
1.03%
|
0.70%
|
|
Return on
average common equity
|
|
13.42%
|
8.01%
|
|
10.51%
|
7.03%
|
|
9.74%
|
5.84%
|
|
11.26%
|
6.99%
|
|
Return on
average common tangible equity
|
15.10%
|
9.11%
|
|
11.89%
|
8.04%
|
|
11.01%
|
6.72%
|
|
12.71%
|
7.99%
|
|
Net interest
margin (non taxable equivalent)
|
3.43%
|
3.24%
|
|
3.17%
|
3.35%
|
|
3.20%
|
3.52%
|
|
3.27%
|
3.36%
|
|
Net interest
margin (taxable equivalent)
|
|
3.47%
|
3.28%
|
|
3.20%
|
3.38%
|
|
3.23%
|
3.55%
|
|
3.30%
|
3.39%
|
|
Efficiency
ratio1
|
|
61.56%
|
71.53%
|
|
67.50%
|
69.00%
|
|
69.16%
|
72.79%
|
|
65.87%
|
71.07%
|
|
1
Calculated by dividing non-interest expense by net interest income
on tax equivalent basis and non interest income, excluding gain on
sale of other assets and other non-recurring noninterest
income.
|
FIRST COMMUNITY
CORPORATION
|
Yields on Average
Earning Assets and
|
Rates on Average
Interest-Bearing Liabilities
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2021
|
|
Three months ended
September 30, 2020
|
|
|
Average
|
Interest
|
Yield/
|
|
Average
|
Interest
|
Yield/
|
|
|
Balance
|
Earned/Paid
|
Rate
|
|
Balance
|
Earned/Paid
|
Rate
|
|
Assets
|
|
|
|
|
|
|
|
|
Earning
assets
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
PPP loans
|
$
31,936
|
$
1,646
|
20.45%
|
|
$
49,203
|
$
360
|
2.91%
|
|
Non-PPP loans
|
861,952
|
9,310
|
4.29%
|
|
818,893
|
9,048
|
4.40%
|
|
Total
loans
|
893,888
|
10,956
|
4.86%
|
|
868,096
|
9,408
|
4.31%
|
|
Securities
|
488,526
|
1,995
|
1.62%
|
|
299,858
|
1,525
|
2.02%
|
|
Other
short-term investments and CD's
|
58,547
|
31
|
0.21%
|
|
80,653
|
43
|
0.21%
|
|
Total earning
assets
|
1,440,961
|
12,982
|
3.57%
|
|
1,248,607
|
10,976
|
3.50%
|
|
Cash and due from
banks
|
24,903
|
|
|
|
15,568
|
|
|
|
Premises and
equipment
|
33,747
|
|
|
|
34,721
|
|
|
|
Goodwill and other
intangibles
|
15,621
|
|
|
|
15,872
|
|
|
|
Other
assets
|
38,376
|
|
|
|
39,751
|
|
|
|
Allowance for loan
losses
|
(10,788)
|
|
|
|
(9,410)
|
|
|
|
Total
assets
|
$
1,542,820
|
|
|
|
$
1,345,109
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts
|
$
306,108
|
$
43
|
0.06%
|
|
$
256,990
|
$
57
|
0.09%
|
|
Money market
accounts
|
278,958
|
109
|
0.16%
|
|
228,502
|
146
|
0.25%
|
|
Savings
deposits
|
139,540
|
20
|
0.06%
|
|
117,818
|
18
|
0.06%
|
|
Time
deposits
|
157,485
|
231
|
0.58%
|
|
166,070
|
438
|
1.05%
|
|
Other
borrowings
|
77,840
|
123
|
0.63%
|
|
63,312
|
141
|
0.89%
|
|
Total
interest-bearing liabilities
|
959,931
|
526
|
0.22%
|
|
832,692
|
800
|
0.38%
|
|
Demand
deposits
|
430,474
|
|
|
|
367,597
|
|
|
|
Other
liabilities
|
12,011
|
|
|
|
13,083
|
|
|
|
Shareholders'
equity
|
140,404
|
|
|
|
131,737
|
|
|
|
Total liabilities and
shareholders' equity
|
$
1,542,820
|
|
|
|
$
1,345,109
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of deposits,
including demand deposits
|
|
|
0.12%
|
|
|
|
0.23%
|
|
Cost of funds,
including demand deposits
|
|
|
0.15%
|
|
|
|
0.27%
|
|
Net interest
spread
|
|
|
3.35%
|
|
|
|
3.12%
|
|
Net interest
income/margin - excluding PPP loans
|
|
$
10,810
|
3.04%
|
|
|
$
9,816
|
3.26%
|
|
Net interest
income/margin - including PPP loans
|
|
$
12,456
|
3.43%
|
|
|
$
10,176
|
3.24%
|
|
Net interest
income/margin (tax equivalent) - excl. PPP loans
|
$
10,939
|
3.08%
|
|
|
$
9,922
|
3.29%
|
|
Net interest
income/margin (tax equivalent) - incl. PPP loans
|
$
12,585
|
3.47%
|
|
|
$
10,282
|
3.28%
|
|
FIRST COMMUNITY
CORPORATION
|
Yields on Average
Earning Assets and
|
Rates on Average
Interest-Bearing Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2021
|
|
Nine months ended
September 30, 2020
|
|
|
|
Average
|
Interest
|
Yield/
|
|
Average
|
Interest
|
Yield/
|
|
|
|
Balance
|
Earned/Paid
|
Rate
|
|
Balance
|
Earned/Paid
|
Rate
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
|
PPP loans
|
$
47,605
|
$
3,086
|
8.67%
|
|
$
27,088
|
$
577
|
2.85%
|
|
|
Non-PPP loans
|
844,382
|
27,061
|
4.28%
|
|
788,636
|
26,677
|
4.52%
|
|
|
Total
loans
|
891,987
|
30,147
|
4.52%
|
|
815,724
|
27,254
|
4.46%
|
|
|
Securities
|
431,332
|
5,623
|
1.74%
|
|
293,724
|
4,862
|
2.21%
|
|
|
Other
short-term investments and CD's
|
71,804
|
94
|
0.18%
|
|
56,532
|
236
|
0.56%
|
|
|
Total earning
assets
|
1,395,123
|
35,864
|
3.44%
|
|
1,165,980
|
32,352
|
3.71%
|
|
|
Cash and due from
banks
|
22,844
|
|
|
|
15,142
|
|
|
|
|
Premises and
equipment
|
34,065
|
|
|
|
34,853
|
|
|
|
|
Goodwill and other
intangibles
|
15,673
|
|
|
|
15,967
|
|
|
|
|
Other
assets
|
38,581
|
|
|
|
39,975
|
|
|
|
|
Allowance for loan
losses
|
(10,629)
|
|
|
|
(8,052)
|
|
|
|
|
Total
assets
|
$
1,495,657
|
|
|
|
$
1,263,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts
|
$
296,430
|
152
|
0.07%
|
|
$
235,346
|
220
|
0.12%
|
|
|
Money market
accounts
|
267,143
|
359
|
0.18%
|
|
210,212
|
674
|
0.43%
|
|
|
Savings
deposits
|
132,700
|
58
|
0.06%
|
|
110,095
|
65
|
0.08%
|
|
|
Time
deposits
|
158,969
|
801
|
0.67%
|
|
167,150
|
1,456
|
1.16%
|
|
|
Other
borrowings
|
77,179
|
379
|
0.66%
|
|
67,504
|
601
|
1.19%
|
|
|
Total
interest-bearing liabilities
|
932,421
|
1,749
|
0.25%
|
|
790,307
|
3,016
|
0.51%
|
|
|
Demand
deposits
|
413,723
|
|
|
|
332,975
|
|
|
|
|
Other
liabilities
|
12,426
|
|
|
|
13,195
|
|
|
|
|
Shareholders'
equity
|
137,087
|
|
|
|
127,388
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
1,495,657
|
|
|
|
$
1,263,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of deposits,
including demand deposits
|
|
|
0.14%
|
|
|
|
0.31%
|
|
|
Cost of funds,
including demand deposits
|
|
|
0.17%
|
|
|
|
0.36%
|
|
|
Net interest
spread
|
|
|
3.19%
|
|
|
|
3.20%
|
|
|
Net interest
income/margin - excluding PPP loans
|
$
31,029
|
3.08%
|
|
|
$
28,759
|
3.37%
|
|
|
Net interest
income/margin - including PPP loans
|
34,115
|
3.27%
|
|
|
29,336
|
3.36%
|
|
|
Net interest
income/margin (tax equivalent) - excl. PPP loans
|
$
31,389
|
3.11%
|
|
|
$
29,046
|
3.41%
|
|
|
Net interest
income/margin (tax equivalent) - incl. PPP loans
|
$
34,475
|
3.30%
|
|
|
$
29,623
|
3.39%
|
|
|
The tables below provide a reconciliation of non–GAAP measures
to GAAP for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
June 30,
|
|
|
December
31,
|
|
|
September
30,
|
|
Tangible book
value per common share
|
|
|
2021
|
|
|
2021
|
|
|
2020
|
|
|
2020
|
|
Tangible common
equity per common share (non–GAAP)
|
|
$
|
16.37
|
|
$
|
16.22
|
|
$
|
16.08
|
|
$
|
15.67
|
|
Effect to adjust for
intangible assets
|
|
|
2.07
|
|
|
2.07
|
|
|
2.10
|
|
|
2.11
|
|
Book value per common
share (GAAP)
|
|
$
|
18.44
|
|
$
|
18.29
|
|
$
|
18.18
|
|
$
|
17.78
|
|
Tangible common
shareholders' equity to tangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity to tangible assets (non–GAAP)
|
|
|
8.00
|
%
|
|
8.16
|
%
|
|
8.74
|
%
|
|
8.60
|
%
|
Effect to adjust for
intangible assets
|
|
|
0.92
|
%
|
|
0.94
|
%
|
|
1.03
|
%
|
|
1.04
|
%
|
Common equity to
assets (GAAP)
|
|
|
8.92
|
%
|
|
9.10
|
%
|
|
9.77
|
%
|
|
9.64
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity
|
Three months
ended
September 30,
|
Three months
ended
June 30,
|
|
Three months
ended
March 31,
|
|
Nine months ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Return on average
tangible common equity (non-GAAP)
|
15.10
|
%
|
9.11
|
%
|
11.89
|
%
|
8.04
|
%
|
11.01
|
%
|
6.72
|
%
|
12.71
|
%
|
7.99
|
%
|
Effect to adjust for
intangible assets
|
(1.68)
|
%
|
(1.10)
|
%
|
(1.38)
|
%
|
(1.01)
|
%
|
(1.27)
|
%
|
(0.88)
|
%
|
(1.45)
|
%
|
(1.00)
|
%
|
Return on average
common equity (GAAP)
|
13.42
|
%
|
8.01
|
%
|
10.51
|
%
|
7.03
|
%
|
9.74
|
%
|
5.84
|
%
|
11.26
|
%
|
6.99
|
%
|
|
Three months
ended
|
Nine months
ended
|
|
September
30,
|
|
June
30,
|
September
30,
|
|
September
30,
|
Pre-tax,
pre-provision earnings
|
|
2021
|
|
|
2021
|
|
|
2020
|
|
2021
|
|
2020
|
Pre-tax,
pre-provision earnings (non–GAAP)
|
$
|
6,115
|
|
$
|
4,632
|
|
$
|
4,312
|
$
|
15,070
|
$
|
11,618
|
Effect to adjust for
pre-tax, pre-provision earnings
|
|
(1,367)
|
|
|
(1,089)
|
|
|
(1,660)
|
|
(3,524)
|
|
(4,955)
|
Net Income
(GAAP)
|
$
|
4,748
|
|
$
|
3,543
|
|
$
|
2,652
|
$
|
11,546
|
$
|
6,663
|
|
|
|
Three months
ended
|
Nine months
ended
|
|
|
|
September
30,
|
September
30,
|
Net interest
margin excluding PPP Loans
|
|
|
2021
|
|
|
2020
|
|
2021
|
2020
|
Net interest margin
excluding PPP loans (non-GAAP)
|
|
|
3.04%
|
|
|
3.26%
|
|
3.08%
|
3.37%
|
Effect to adjust for
PPP loans
|
|
|
0.39
|
|
|
(0.02)
|
|
0.19
|
(0.01)
|
Net interest margin
(GAAP)
|
|
|
3.43%
|
|
|
3.24%
|
|
3.27%
|
3.36%
|
|
|
Three months
ended
|
|
|
Nine months
ended
|
|
|
September
30,
|
|
|
September
30,
|
Net interest
margin on a tax-equivalent basis excluding PPP Loans
|
|
2021
|
2020
|
|
|
2021
|
2020
|
Net interest margin
on a tax-equivalent basis excluding PPP loans (non-GAAP)
|
|
3.08%
|
3.29%
|
|
|
3.11%
|
3.41%
|
Effect to adjust for
PPP loans
|
|
0.39
|
(0.01)
|
|
|
0.19
|
(0.02)
|
Net interest margin
on a tax equivalent basis (GAAP)
|
|
3.47%
|
3.28%
|
|
|
3.30%
|
3.39%
|
|
|
|
September
30,
|
|
|
June 30,
|
|
Growth
|
|
Annualized
Growth
|
|
Loans and loan
growth
|
|
|
2021
|
|
|
2021
|
|
Dollars
|
|
Rate
|
|
Non-PPP Loans and
Related Credit Facilities (non-GAAP)
|
|
$
|
870,608
|
|
|
829,086
|
|
|
41,522
|
|
19.9
|
%
|
PPP Related Credit
Facilities
|
|
|
1,803
|
|
|
2,003
|
|
|
(200)
|
|
(39.6)
|
%
|
Non-PPP Loans
(non–GAAP)
|
|
$
|
872,411
|
|
$
|
831,089
|
|
$
|
41,322
|
|
19.7
|
%
|
PPP Loans
|
|
|
9,109
|
|
|
47,229
|
|
|
(38,120)
|
|
(320.2)
|
%
|
Total Loans
(GAAP)
|
|
$
|
881,520
|
|
$
|
878,318
|
|
$
|
3,202
|
|
1.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
December
31,
|
|
Growth
|
|
Annualized
Growth
|
|
Loans and loan
growth
|
|
|
2021
|
|
|
2020
|
|
Dollars
|
|
Rate
|
|
Non-PPP Loans and
Related Credit Facilities (non-GAAP)
|
|
$
|
870,608
|
|
|
796,727
|
|
|
73,881
|
|
12.4
|
%
|
PPP Related Credit
Facilities
|
|
|
1,803
|
|
|
5,188
|
|
|
(3,385)
|
|
(87.2)
|
%
|
Non-PPP Loans
(non–GAAP)
|
|
$
|
872,411
|
|
$
|
801,915
|
|
$
|
70,496
|
|
11.8
|
%
|
PPP Loans
|
|
|
9,109
|
|
|
42,242
|
|
|
(33,133)
|
|
(104.9)
|
%
|
Total Loans
(GAAP)
|
|
$
|
881,520
|
|
$
|
844,157
|
|
$
|
37,363
|
|
5.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
interest margin excluding PPP Loans," "Net interest margin on a
tax-equivalent basis excluding PPP Loans," "Non-PPP Loans and
Related Credit Facilities," and "Non-PPP Loans."
- "Tangible book value per common share" is defined as total
equity reduced by recorded intangible assets divided by total
common shares outstanding.
- "Tangible common shareholders' equity to tangible assets" is
defined as total common equity reduced by recorded intangible
assets divided by total assets reduced by recorded intangible
assets.
- "Return on average tangible common equity" is defined as net
income on an annualized basis divided by average total equity
reduced by average recorded intangible assets.
- "Pre-tax, pre-provision earnings" is defined as net interest
income plus non-interest income, reduced by non-interest
expense.
- "Net interest margin excluding PPP Loans" is defined as
annualized net interest income less annualized interest income on
PPP Loans divided by average earning assets less the average
balance of PPP Loans.
- "Net interest margin on a tax-equivalent basis excluding PPP
Loans" is defined as annualized net interest income on a
tax-equivalent basis less annualized interest income on PPP Loans
divided by average earning assets less the average balance of PPP
Loans.
- "Non-PPP Loans and Related Credit Facilities" is defined as
Total Loans less PPP Related Credit Facilities and PPP Loans.
- "Non-PPP Loans" is defined as Total Loans less PPP Loans.
- "Non-PPP Loans and Related Credit Facilities Growth - Dollars"
is calculated by taking the difference between two time periods
compared for Total Loans less PPP Loans and PPP Related Credit
Facilities. "Non-PPP Loans and Related Credit Facilities –
Annualized Growth Rate" is calculated by (i) dividing "Non-PPP
Loans and Related Credit Facilities Loan Growth - Dollars" by the
number of days between the two time periods compared (ii) times the
number of days in the year (iii) divided by the prior time period
Non-PPP Loans and Related Credit Facilities balance.
- "Non-PPP Loans Growth - Dollars" is calculated by taking the
difference between two time periods compared for Total Loans less
PPP Loans. "Non-PPP Loans – Annualized Growth Rate" is calculated
by (i) dividing "Non-PPP Loans Loan Growth - Dollars" by the number
of days between the two time periods compared (ii) times the number
of days in the year (iii) divided by the prior time period Non-PPP
Loans balance.
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.
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SOURCE First Community Corporation