Highlights for Third Quarter of 2023
- Net income of $1.756
million.
- Diluted EPS of $0.23 per common
share for the quarter and $1.12
year-to-date through September 30,
2023.
- Total loans increased during the third quarter by $59.5 million, an annualized growth rate of
22.9%. Loan growth during the last twelve months was
$141.4 million, a 14.9% growth
rate.
- Total deposits increased during the third quarter by
$71.3 million, an annualized growth
rate of 19.9%. Excluding brokered deposits, the increase was
$23.0 million, an annualized growth
rate of 6.5%.
- Investment advisory line of business revenue of $1.187 million.
- Strong credit quality metrics with non-performing assets (NPAs)
ratio of 0.04%, past due ratio of 0.06% and net loan recoveries
excluding overdrafts of $11 thousand
during the third quarter, with a year-to-date net loan recoveries
excluding overdrafts of $40
thousand.
- Cash dividend of $0.14 per common
share, which is the 87th consecutive quarter of cash
dividends paid to common shareholders.
LEXINGTON, S.C., Oct. 18,
2023 /PRNewswire/ -- Today, First Community
Corporation (Nasdaq: FCCO), the holding company for First
Community Bank, reported net income for the third quarter of 2023
of $1.756 million as compared to
$3.327 million in the second quarter
of 2023 and $3.951 million in the
third quarter of 2022. Diluted earnings per common share were
$0.23 for the third quarter of 2023
as compared to $0.43 for the second
quarter of 2023 and $0.52 for the
third quarter of 2022. Pre-tax pre-provision earnings during
the third quarter of 2023 were $2.694
million. This compares to pre-tax pre-provision
earnings of $5.050 million for third
quarter of 2022 and $4.433 million
for the second quarter of 2023.
Year-to-date through September 30,
2023 net income was $8.546
million compared to $10.570
million during the first nine months of 2022. Diluted
earnings per share for the first nine months of 2023 were
$1.12, compared to $1.39 during the same time period in 2022.
Pre-tax pre-provision earnings through September 30, 2023 were $11.623 million. This compares to pre-tax
pre-provision earnings of $13.075
million for the same period in 2022.
During the third quarter of 2023, the company sold $39.9 million of book value U.S. Treasuries in
its available-for-sale portfolio. While this sale created a
one-time pre-tax loss of $1.2
million, it provided additional liquidity which is being
used to pay down borrowings and fund loan growth. The
weighted average book yield of the securities sold was 1.75% and
the projected earn back period is 1.6 years. This transitions
the balance sheet to be more efficient, improves net interest
margin, and positions the company for higher earnings in the
future.
Cash Dividend and Capital
The Board of Directors approved a cash dividend for the third
quarter of 2023. The company will pay a $0.14 per share dividend to holders of the
company's common stock. This dividend is payable November 14, 2023 to shareholders of record as of
October 31, 2023. 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
87th consecutive quarter."
As previously announced, the company's Board of Directors has
approved a share repurchase plan that provides for the repurchase
of up to 375,000 shares of its common stock, which represents
approximately 5% of the company's 7,600,023 shares outstanding on
September 30, 2023. Under the
repurchase plan, the company may repurchase shares from time to
time. No shares have been repurchased under this
plan.
Each of the regulatory capital ratios for the bank exceed the
well capitalized minimum levels currently required by regulatory
statute. At September 30, 2023,
the bank's regulatory capital ratios (Leverage, Tier I Risk Based
and Total Risk Based) were 8.63%, 12.47%, and 13.50%,
respectively. This compares to the same ratios as of
September 30, 2022 of 8.53%, 13.42%,
and 14.49%, respectively. As of September
30, 2023, the bank's Common Equity Tier I ratio was 12.47%
compared to 13.42% at September 30,
2022. Further, the company's Tangible Common Equity to
Tangible Assets (TCE) ratio was 6.09% as of September 30, 2023 compared to 6.03% as of
September 30, 2022.
Tangible Book Value (TBV) per common share was $14.25 at September 30,
2023, compared to $14.33 as of
June 30, 2023, and $13.03 as of September
30, 2022. Excluding Accumulated Other Comprehensive
Loss (AOCL), TBV per common share increased in the quarter to
$18.60 at September 30, 2023, from $18.48 at June 30,
2023, and $17.43 at
September 30, 2022.
Asset Quality
Asset quality metrics remained strong as of September 30, 2023. The non-performing
assets ratio for the third quarter was 0.04% of total assets and a
total past due ratio of 0.06% of total loans. Net loan
recoveries excluding overdrafts for the quarter were $11 thousand and the year-to-date through
September 30, 2023 net loan
recoveries excluding overdrafts were $40
thousand. The ratio of classified loans plus OREO now
stands at 1.17% of total bank regulatory risk-based capital as of
September 30, 2023.
As a community bank focused on local businesses, professionals,
organizations, and individuals, the bank has no individual or
industry concentrations. In order to provide additional clarity to
our commercial real estate exposure, the information below includes
only non-owner occupied loans.
Collateral
|
Outstanding
|
% of Loan
Portfolio
|
Average
Loan
Size
|
Weighted
Avg LTV
of Top 10
Loans
|
Retail
|
$89,728,572
|
8.2 %
|
$1,043,355
|
55 %
|
Warehouse &
Industrial
|
$75,258,480
|
6.9 %
|
$827,016
|
58 %
|
Office
|
$64,071,352
|
5.9 %
|
$719,903
|
62 %
|
Hotel
|
$58,607,430
|
5.4 %
|
$3,084,602
|
63 %
|
It is worth noting that in our office exposure noted above,
there are only four loans where the collateral is an office
building in excess of 50,000 square feet of rentable
space. These four loans represent $10.4 million in loan outstandings and have a
weighted average loan-to-value of 33%.
Balance Sheet
Total loans increased during the third quarter by $59.5 million to $1.092
billion at September 30, 2023,
compared to $1.032 billion at
June 30, 2023, which is an annualized
growth rate of 22.9%. Commercial loan production was
$52.5 million and advances from
unfunded commercial construction loans available for draws was
$25.9 million during the third
quarter of 2023. Loan payoffs and paydowns were down slightly
on a linked quarter basis and were down approximately 61% compared
to the third quarter of 2022. First Community Bank President
Ted Nissen noted, "The strong loan
growth that we have experienced in 2023 continued through the third
quarter as we benefited from new production and advances in
unfunded commercial construction loans along with lower payoffs and
paydowns."
Total deposits increased $71.3
million during the third quarter to $1.492 billion at September 30, 2023 compared to $1.421 billion at June
30, 2023. Pure deposits, which are defined as total
deposits less certificates of deposits, were relatively flat on a
linked quarter with $1.289 billion at
September 30, 2023 compared to
$1.291 billion at June 30, 2023. Securities sold under
agreements to repurchase, which are related to customer cash
management accounts or business sweep accounts, were $67.2 million at September
30, 2023, compared to $72.1
million at June 30,
2023. To secure a cost effective stable funding source,
during the third quarter of 2023, the company issued $48.2 million in brokered certificates of deposit
ranging in terms from six months to three years, with the three
year term callable after six months. Excluding these brokered
deposits, total deposits increased $23.1
million during the quarter. Costs of deposits were
1.32% in the third quarter of 2023 compared to 0.97% in the second
quarter of the year. Excluding the brokered deposits, the
cost of deposits was 1.28% in the third quarter of 2023. Cost
of funds increased on a linked quarter basis to 1.64% in the third
quarter of 2023 from 1.34% in the second quarter of the year.
The cumulative cycle deposit beta for cost of deposits is 26.67%
and for cost of funds is 31.05%. Non-interest bearing
deposits remained relatively flat on a linked quarter basis at
$450.7 million or 31.2% of total
deposits (excluding the brokered deposits). Mr. Crapps
commented, "A strength of our bank has been and continues to be the
value of our deposit franchise. In the third quarter of 2023,
we continued to experience pressure on interest rates for interest
bearing deposits as a result of the rising rate environment, and
thus we saw increases in our cost of deposits and cost of
funds. Notably, while there has been some modest change in
the mix, our total deposits increased 5.0% on a linked quarter
which is 19.9% annualized."
As of September 30, 2023, the bank
had uninsured deposits of $429.7
million, or 28.8%, of total bank deposits. Of those
uninsured deposits, $85.7 million, or
5.74%, of total bank deposits were deposits of states or political
subdivisions in the U.S. which are secured or collateralized.
Total uninsured deposits, excluding these deposits that are secured
or collateralized, were $344.0
million, or 23.1%, of total deposits at September 30, 2023. The average balance of
all customer deposit accounts as of September 30, 2023 was $27,978. The average balance for consumer
accounts was $14,997 and for
non-consumer accounts was $62,437.
All of the above points to the granularity and the quality of the
bank's deposit franchise.
The bank has other short-term investments, primarily interest
bearing cash at the Federal Reserve Bank, of $69.7 million at September
30, 2023 compared to $28.7
million at June 30,
2023. Further, the bank has additional sources of liquidity
in the form of federal funds purchased lines of credit in the total
amount of $85.0 million with four
financial institutions and $10.0
million through the Federal Reserve Discount Window.
There were no borrowings against these lines of credit as of
September 30, 2023.
The bank also has substantial borrowing capacity at the Federal
Home Loan Bank (FHLB) of Atlanta
with an approved line of credit of up to 25% of assets. As of
September 30, 2023, the bank had FHLB
advances of $80.0 million.
Therefore, having remaining credit availability under this facility
in excess of $355.1 million, subject
to collateral requirements.
Combined, the company has total remaining credit availability in
excess of $450.1 million as compared
to uninsured deposits (excluding deposits secured or collateralized
as noted above) of $344.0
million.
The investment portfolio was $506.8
million at September 30, 2023
compared to $555.9 million at
June 30, 2023. The yield
increased to 3.42% during the third quarter of 2023 as compared to
3.27% in the second quarter of 2023. The effective duration
of the available-for-sale portfolio is 3.04 at September 30, 2023. AOCL increased to
$33.1 million at September 30, 2023 from $31.5 million at June 30,
2023 due to an increase in market interest rates.
Mr. Crapps commented, "We are extremely excited about the
success in the growth of our loan portfolio during the third
quarter. This is reflective of the hard work of our team and
the high quality of our customers and markets. Additionally,
our successful deposit franchise continues to be a strength for our
company as demonstrated by the stability of our deposit base during
the third quarter."
Revenue
Net Interest Income/Net Interest Margin
Net interest income for the third quarter was $12.103 million, compared to $12.137 million in the second quarter of 2023 and
$12.794 million for the third quarter
of 2022. Third quarter net interest margin, on a tax
equivalent basis, was 2.96% compared to net interest margin of
3.02% in the second quarter of 2023. The contraction in net
interest margin was expected as the increased cost of deposits and
cost of funds outpaced the improvement in our average earning asset
yield. It is notable that the six basis point contraction
this quarter compares favorably to the contraction in the second
and first quarters of this year of 17 and 23 basis points,
respectively.
As previously discussed, effective May 5,
2023, the company entered into a pay-fixed/receive-floating
interest rate swap (the "Pay-Fixed Swap Agreement") for a notional
amount of $150.0 million that was
designated as a fair value hedge to hedge the risk of changes in
the fair value of the fixed rate loans included in the closed loan
portfolio. This fair value hedge converts the hedged loans from a
fixed rate to a synthetic floating SOFR rate. The Pay-Fixed Swap
Agreement will mature on May 5, 2026
and the company will pay a fixed coupon rate of 3.58% while
receiving the overnight SOFR rate. This interest rate swap
positively impacted interest on loans by $626 thousand during the third quarter and
$962 thousand through September 30, 2023. Loan yields and net
interest margin both benefitted with an increase of 25 basis points
and 16 basis points, respectively during the third quarter and 13
basis points and eight basis points, respectively, through
September 30, 2023.
Non-Interest Income
Total non-interest income was $1.864
million in the third quarter of 2023 compared to
$3.051 million in the second quarter
of the year and $2.673 million in the
third quarter of 2022. Excluding the loss on the sale
of securities discussed above, the total non-interest income for
the third quarter of 2023 was $3.113
million.
Total production in the mortgage line of business in the second
quarter of 2023 was $41.7 million
which was comprised of $17.3 million
in secondary market loans, $11.4
million in adjustable rate mortgages (ARMs) and $13.0 million in construction loans. Fee
revenue associated with the secondary market loans was $508 thousand in the third quarter of 2023 with a
gain-on-sale margin of 2.93%. This compares to production on
a linked quarter of $32.3
million which was comprised of $12.9
million in secondary market loans, $5.7 million in ARMs, and $13.7 million in construction loans. Fee
revenue associated with the secondary market loans in the second
quarter of 2023 was $371 thousand
with a gain-on-sale margin of 2.87%. Mr. Crapps noted, "We
saw improvement in secondary market loans in the third quarter of
the year and the bank also continues to have success with its
adjustable rate mortgage and construction loan products.
While we are still experiencing the headwinds of a higher interest
rate environment and low housing inventory, we are encouraged by
the trends we are seeing this quarter."
Total assets under management (AUM) in the investment advisory
line of business were $674.5 million
at September 30, 2023 compared to
$675.4 million at June 30, 2023 and $558.8
million at December 31, 2022.
Revenue in this line of business was $1.187
million in the third quarter of 2023, compared to
$1.081 million in the second quarter
of the year which is an increase of 9.8% on a linked quarter, and
compared to $1.053 million in the
third quarter of 2022 which is an increase of 12.7%
year-over-year.
Non-Interest Expense
Non-interest expense was $11.273
million in the third quarter of 2023, up $518 thousand over the second quarter of
2023. Marketing expense was $239
thousand higher on a linked quarter due to a more extensive
media schedule during the period. Other expense was up
$132 thousand in the third quarter of
2023 primarily due to higher than normal fraud losses
of $230 thousand during the quarter,
which is discussed in detail below. This increase in
fraud losses was partially offset by lower expenses on
a linked quarter basis in other categories in Other expense.
Salaries and Benefits expense was $105
thousand higher on a linked quarter primarily due to higher
salary and benefit costs in the mortgage line of business related
to the previously discussed increased mortgage production.
Other Real Estate Expense was up $51
thousand in the third quarter over the second quarter of the
year which had a benefit of $30
thousand from the recovery related to the resolution of a
non-accrual loan relationship.
The company experienced an extraordinary spike in mail check
fraud losses during the third quarter.
Historically, fraud losses for the bank have been well
under those of peers. The company believes this recent spike,
with over three times the normal customer-reported incidences, is
directly related to confirmed local mail thefts within the bank's
markets, as well as fraudsters targeting smaller counterfeit check
amounts to avoid early detection. The bank's current case
volumes, as reported by customers, suggest that the spike has
abated. However, because fraud risk is ever
evolving, the bank has responded with countermeasures including
deploying additional resources, and conducting a formal customer
education marketing campaign called "THINK TWICE", which requests
customers who have been a victim of fraud to enhance
their check authorization processes and upgrade to the bank's
current fraud detection system.
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 services, residential mortgage lending and
financial planning/investment advisory services for businesses and
consumers. First Community serves customers in the
Midlands, Aiken, Upstate and Piedmont Regions of
South Carolina 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", "plans", "future"
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; (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 continue to
have a negative impact on the company; (6) changes in interest
rates, which may affect our deposit and funding costs, net income,
prepayment penalty income, mortgage banking income, and other
future cash flows, or the market value of our assets, including our
investment securities; (7) 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; (8) elevated inflation which causes adverse
risk to the overall economy, and could indirectly pose challenges
to our customers and to our business; (9) FDIC assessment which has
increased and may continue to increase our cost of doing business;
(10) the adverse effects of events beyond our control that may have
a destabilizing effect on financial markets and the economy, such
as epidemics and pandemics, war or terrorist activities, essential
utility outages, deterioration in the global economy, instability
in the credit markets, disruptions in our customers' supply chains
or disruption in transportation; and (11) 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,
|
March 31,
|
December 31,
|
September
30,
|
|
|
2023
|
2023
|
2023
|
2022
|
2022
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
1,793,722
|
$1,740,982
|
$1,735,398
|
$
1,672,946
|
$
1,651,829
|
Other Short-term
Investments and CD's1
|
|
69,703
|
28,710
|
60,597
|
12,937
|
17,244
|
Investment
Securities
|
|
|
|
|
|
|
Investments
Held-to-Maturity
|
|
219,903
|
221,429
|
223,137
|
228,701
|
233,301
|
Investments
Available-for-Sale
|
|
280,549
|
328,239
|
336,457
|
331,862
|
338,350
|
Other Investments at
Cost
|
|
6,305
|
6,208
|
5,768
|
4,191
|
1,929
|
Total
Investment Securities
|
|
506,757
|
555,876
|
565,362
|
564,754
|
573,580
|
Loans
Held-for-Sale
|
|
5,509
|
4,195
|
1,312
|
1,779
|
1,758
|
Loans
|
|
|
|
|
|
|
Paycheck Protection Program
(PPP) Loans
|
|
170
|
179
|
200
|
219
|
238
|
Non-PPP Loans
|
|
1,091,475
|
1,031,986
|
992,520
|
980,638
|
949,972
|
Total
Loans
|
|
1,091,645
|
1,032,165
|
992,720
|
980,857
|
950,210
|
Allowance for
Credit Losses - Investments
|
|
32
|
37
|
42
|
-
|
-
|
Allowance for
Credit Losses - Loans
|
|
11,818
|
11,554
|
11,420
|
11,336
|
11,315
|
Allowance for
Credit Losses - Unfunded Commitments
|
|
643
|
429
|
382
|
-
|
-
|
Goodwill
|
|
14,637
|
14,637
|
14,637
|
14,637
|
14,637
|
Other
Intangibles
|
|
643
|
682
|
722
|
761
|
801
|
Total
Deposits
|
|
1,492,026
|
1,420,753
|
1,420,157
|
1,385,382
|
1,436,256
|
Securities Sold
Under Agreements to Repurchase
|
|
67,173
|
72,103
|
76,975
|
68,743
|
73,659
|
Federal Funds
Purchased
|
|
-
|
-
|
-
|
22,000
|
-
|
Federal Home
Loan Bank Advances
|
|
80,000
|
95,000
|
85,000
|
50,000
|
-
|
Junior
Subordinated Debt
|
|
14,964
|
14,964
|
14,964
|
14,964
|
14,964
|
Shareholders'
Equity
|
|
123,601
|
124,148
|
123,581
|
118,361
|
114,145
|
|
|
|
|
|
|
|
Book Value Per
Common Share
|
|
$
16.26
|
$ 16.35
|
$ 16.29
|
$
15.62
|
$
15.07
|
Tangible Book
Value Per Common Share
|
|
$
14.25
|
$ 14.33
|
$ 14.26
|
$
13.59
|
$
13.03
|
Tangible Book
Value Per Common Share excluding Accumulated Other
|
$
18.60
|
$ 18.48
|
$ 18.15
|
$
17.86
|
$
17.43
|
Comprehensive Income
(Loss)
|
|
|
|
|
|
|
Equity to
Assets
|
|
6.89 %
|
7.13 %
|
7.12 %
|
7.08 %
|
6.91 %
|
Tangible Common
Equity to Tangible Assets (TCE Ratio)
|
6.09 %
|
6.31 %
|
6.29 %
|
6.21 %
|
6.03 %
|
TCE Ratio
excluding Accumulated Other Comprehensive Income (Loss)
|
7.80 %
|
7.99 %
|
7.87 %
|
8.01 %
|
7.90 %
|
Loan to Deposit
Ratio (Includes Loans Held-for-Sale)
|
|
73.53 %
|
72.94 %
|
69.99 %
|
70.93 %
|
66.28 %
|
Loan to Deposit
Ratio (Excludes Loans Held-for-Sale)
|
|
73.17 %
|
72.65 %
|
69.90 %
|
70.80 %
|
66.16 %
|
Allowance for
Credit Losses - Loans/Loans
|
|
1.08 %
|
1.12 %
|
1.15 %
|
1.16 %
|
1.19 %
|
|
|
|
|
|
|
|
Regulatory Capital
Ratios (Bank):
|
|
|
|
|
|
|
Leverage
Ratio
|
|
8.63 %
|
8.63 %
|
8.68 %
|
8.63 %
|
8.53 %
|
Tier 1 Capital
Ratio
|
|
12.47 %
|
13.29 %
|
13.55 %
|
13.49 %
|
13.42 %
|
Total Capital
Ratio
|
|
13.50 %
|
14.35 %
|
14.63 %
|
14.54 %
|
14.49 %
|
Common Equity
Tier 1 Capital Ratio
|
|
12.47 %
|
13.29 %
|
13.55 %
|
13.49 %
|
13.42 %
|
Tier 1
Regulatory Capital
|
|
$ 151,360
|
$
150,414
|
$
147,877
|
$ 145,578
|
$ 142,305
|
Total Regulatory
Capital
|
|
$ 163,853
|
$
162,434
|
$
159,721
|
$ 156,914
|
$ 153,620
|
Common Equity
Tier 1 Capital
|
|
$ 151,360
|
$
150,414
|
$
147,877
|
$ 145,578
|
$ 142,305
|
|
|
|
|
|
|
|
1
Includes federal funds sold and
interest-bearing deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances:
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
|
Average Total
Assets
|
|
$
1,744,670
|
$1,667,737
|
|
$
1,725,855
|
$
1,644,803
|
Average Loans
(Includes Loans Held-for-Sale)
|
|
1,065,698
|
938,318
|
|
1,023,428
|
903,989
|
Average
Investment Securities
|
|
533,094
|
581,044
|
|
553,496
|
571,131
|
Average
Short-term Investments and CDs1
|
|
29,468
|
37,529
|
|
34,057
|
59,071
|
Average Earning
Assets
|
|
1,628,260
|
1,556,891
|
|
1,610,981
|
1,534,191
|
Average
Deposits
|
|
1,432,823
|
1,449,951
|
|
1,408,074
|
1,417,855
|
Average Other
Borrowings
|
|
171,304
|
86,602
|
|
180,051
|
90,361
|
Average
Shareholders' Equity
|
|
125,077
|
119,001
|
|
123,008
|
124,038
|
|
|
|
|
|
|
|
Asset
Quality:
|
|
As
of
|
|
|
September
30,
|
June 30,
|
March 31,
|
December 31,
|
September
30,
|
|
|
2023
|
2023
|
2023
|
2022
|
2022
|
Loan Risk Rating by
Category (End of Period)
|
|
|
|
|
|
|
Special
Mention
|
|
$
550
|
$
565
|
$
646
|
$
557
|
$
596
|
Substandard
|
|
1,241
|
1,312
|
5,306
|
6,082
|
6,539
|
Doubtful
|
|
-
|
-
|
-
|
-
|
-
|
Pass
|
|
1,089,854
|
1,030,288
|
986,768
|
974,218
|
943,075
|
Total Loans
|
|
$
1,091,645
|
$1,032,165
|
$
992,720
|
$ 980,857
|
$ 950,210
|
Nonperforming
Assets
|
|
|
|
|
|
|
Non-accrual
Loans
|
|
$
61
|
$
82
|
$ 4,126
|
$
4,895
|
$
4,875
|
Other Real
Estate Owned and Repossessed Assets
|
|
666
|
927
|
934
|
934
|
984
|
Accruing Loans
Past Due 90 Days or More
|
|
3
|
1
|
-
|
2
|
30
|
Total Nonperforming
Assets
|
|
$
730
|
$ 1,010
|
$ 5,060
|
$
5,831
|
$
5,889
|
Accruing Trouble Debt
Restructurings
|
|
$
81
|
$
84
|
$
86
|
$
88
|
$
91
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2023
|
2022
|
|
2023
|
2022
|
Loans
Charged-off
|
|
$
21
|
$
1
|
|
$
24
|
$
4
|
Overdrafts
Charged-off
|
|
13
|
13
|
|
46
|
43
|
Loan
Recoveries
|
|
(32)
|
(89)
|
|
(64)
|
(352)
|
Overdraft
Recoveries
|
|
(2)
|
(2)
|
|
(11)
|
(8)
|
Net Charge-offs
(Recoveries)
|
|
$
-
|
$
(77)
|
|
$
(5)
|
$
(313)
|
Net Charge-offs /
(Recoveries) to Average Loans2
|
|
0.00 %
|
(0.03 %)
|
|
(0.00 %)
|
(0.05 %)
|
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,
|
|
|
|
2023
|
2022
|
|
2023
|
2022
|
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
18,734
|
$
13,352
|
|
$
17,497
|
$
11,513
|
|
$
15,890
|
$
11,195
|
|
$
52,121
|
$
36,060
|
|
Interest
expense
|
|
6,631
|
558
|
|
5,360
|
462
|
|
3,533
|
462
|
|
15,524
|
1,482
|
|
Net interest
income
|
|
12,103
|
12,794
|
|
12,137
|
11,051
|
|
12,357
|
10,733
|
|
36,597
|
34,578
|
|
Provision for
(release of) credit losses
|
|
474
|
18
|
|
186
|
(70)
|
|
70
|
(125)
|
|
730
|
(177)
|
|
Net interest
income after provision for (release of) credit losses
|
11,629
|
12,776
|
|
11,951
|
11,121
|
|
12,287
|
10,858
|
|
35,867
|
34,755
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit service charges
|
|
240
|
243
|
|
220
|
262
|
|
232
|
265
|
|
692
|
770
|
|
Mortgage banking income
|
|
508
|
290
|
|
371
|
481
|
|
155
|
839
|
|
1,034
|
1,610
|
|
Investment advisory fees and non-deposit commissions
|
1,187
|
1,053
|
|
1,081
|
1,195
|
|
1,067
|
1,198
|
|
3,335
|
3,446
|
|
Gain
(loss) on sale of securities
|
|
(1,249)
|
-
|
|
-
|
-
|
|
-
|
-
|
|
(1,249)
|
-
|
|
Gain
(loss) on sale of other assets
|
|
46
|
-
|
|
105
|
(45)
|
|
-
|
-
|
|
151
|
(45)
|
|
Other non-recurring income
|
|
-
|
-
|
|
121
|
5
|
|
-
|
4
|
|
121
|
9
|
|
Other
|
|
1,132
|
1,087
|
|
1,153
|
1,111
|
|
1,121
|
1,068
|
|
3,406
|
3,266
|
|
Total
non-interest income
|
|
1,864
|
2,673
|
|
3,051
|
3,009
|
|
2,575
|
3,374
|
|
7,490
|
9,056
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
6,613
|
6,373
|
|
6,508
|
6,175
|
|
6,331
|
6,119
|
|
19,452
|
18,667
|
|
Occupancy
|
|
776
|
786
|
|
813
|
786
|
|
830
|
705
|
|
2,419
|
2,277
|
|
Equipment
|
|
416
|
331
|
|
377
|
329
|
|
336
|
332
|
|
1,129
|
992
|
|
Marketing and public relations
|
|
609
|
163
|
|
370
|
446
|
|
346
|
361
|
|
1,325
|
970
|
|
FDIC
assessment
|
|
211
|
121
|
|
221
|
105
|
|
182
|
130
|
|
614
|
356
|
|
Other real estate expenses
|
|
21
|
19
|
|
(30)
|
29
|
|
(133)
|
47
|
|
(142)
|
95
|
|
Amortization of intangibles
|
|
39
|
39
|
|
40
|
40
|
|
39
|
39
|
|
118
|
118
|
|
Other
|
|
2,588
|
2,585
|
|
2,456
|
2,278
|
|
2,505
|
2,221
|
|
7,549
|
7,084
|
|
Total
non-interest expense
|
|
11,273
|
10,417
|
|
10,755
|
10,188
|
|
10,436
|
9,954
|
|
32,464
|
30,559
|
|
Income before
taxes
|
|
2,220
|
5,032
|
|
4,247
|
3,942
|
|
4,426
|
4,278
|
|
10,893
|
13,252
|
|
Income tax
expense
|
|
464
|
1,081
|
|
920
|
812
|
|
963
|
789
|
|
2,347
|
2,682
|
|
Net
income
|
|
$ 1,756
|
$ 3,951
|
|
$ 3,327
|
$ 3,130
|
|
$ 3,463
|
$ 3,489
|
|
$ 8,546
|
$
10,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income,
basic
|
|
$ 0.23
|
$ 0.52
|
|
$ 0.44
|
$ 0.42
|
|
$ 0.46
|
$ 0.46
|
|
$ 1.13
|
$ 1.40
|
|
Net income,
diluted
|
|
$ 0.23
|
$ 0.52
|
|
$ 0.43
|
$ 0.41
|
|
$ 0.45
|
$ 0.46
|
|
$ 1.12
|
$ 1.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number
of shares outstanding - basic
|
7,571,994
|
7,531,104
|
|
7,564,928
|
7,526,284
|
|
7,555,080
|
7,518,375
|
|
7,563,609
|
7,525,301
|
|
Average number
of shares outstanding - diluted
|
7,654,962
|
7,607,909
|
|
7,654,817
|
7,607,349
|
|
7,644,440
|
7,594,840
|
|
7,648,934
|
7,603,499
|
|
Shares
outstanding period end
|
|
7,600,023
|
7,572,517
|
|
7,593,759
|
7,566,633
|
|
7,587,763
|
7,559,760
|
|
7,600,023
|
7,572,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets
|
|
0.40 %
|
0.94 %
|
|
0.77 %
|
0.76 %
|
|
0.83 %
|
0.87 %
|
|
0.66 %
|
0.86 %
|
|
Return on
average common equity
|
|
5.57 %
|
13.17 %
|
|
10.75 %
|
10.82 %
|
|
11.70 %
|
10.31 %
|
|
9.29 %
|
11.39 %
|
|
Return on
average tangible common equity
|
|
6.35 %
|
15.14 %
|
|
12.26 %
|
12.48 %
|
|
13.42 %
|
11.63 %
|
|
10.61 %
|
13.02 %
|
|
Net interest
margin (non taxable equivalent)
|
2.95 %
|
3.26 %
|
|
3.00 %
|
2.90 %
|
|
3.17 %
|
2.87 %
|
|
3.04 %
|
3.01 %
|
|
Net interest
margin (taxable equivalent)
|
|
2.96 %
|
3.29 %
|
|
3.02 %
|
2.93 %
|
|
3.19 %
|
2.91 %
|
|
3.06 %
|
3.05 %
|
|
Efficiency
ratio1
|
|
74.01 %
|
66.78 %
|
|
71.52 %
|
71.60 %
|
|
69.43 %
|
69.93 %
|
|
71.66 %
|
69.36 %
|
|
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, 2023
|
|
Three months ended
September 30, 2022
|
|
|
Average
|
Interest
|
Yield/
|
|
Average
|
Interest
|
Yield/
|
|
|
Balance
|
Earned/Paid
|
Rate
|
|
Balance
|
Earned/Paid
|
Rate
|
|
Assets
|
|
|
|
|
|
|
|
|
Earning
assets
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
PPP loans
|
$
173
|
$
1
|
2.29 %
|
|
$
244
|
$
1
|
1.63 %
|
|
Non-PPP loans
|
1,065,525
|
13,803
|
5.14 %
|
|
938,074
|
10,099
|
4.27 %
|
|
Total
loans
|
1,065,698
|
13,804
|
5.14 %
|
|
938,318
|
10,100
|
4.27 %
|
|
Non-taxable
securities
|
50,569
|
366
|
2.87 %
|
|
52,732
|
385
|
2.90 %
|
|
Taxable
securities
|
482,525
|
4,229
|
3.48 %
|
|
528,312
|
2,673
|
2.01 %
|
|
Int bearing
deposits in other banks
|
29,468
|
335
|
4.51 %
|
|
37,486
|
194
|
2.05 %
|
|
Fed funds
sold
|
-
|
-
|
NA
|
|
43
|
-
|
0.00 %
|
|
Total earning
assets
|
1,628,260
|
18,734
|
4.56 %
|
|
1,556,891
|
13,352
|
3.40 %
|
|
Cash and due from
banks
|
25,782
|
|
|
|
25,033
|
|
|
|
Premises and
equipment
|
31,078
|
|
|
|
32,016
|
|
|
|
Goodwill and other
intangibles
|
15,300
|
|
|
|
15,457
|
|
|
|
Other assets
|
56,044
|
|
|
|
49,587
|
|
|
|
Allowance for credit
losses - investments
|
(37)
|
|
|
|
-
|
|
|
|
Allowance for credit
losses - loans
|
(11,757)
|
|
|
|
(11,247)
|
|
|
|
Total assets
|
$ 1,744,670
|
|
|
|
$ 1,667,737
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
Interest-bearing
transaction accounts
|
$
297,926
|
$
519
|
0.69 %
|
|
$
335,648
|
$
48
|
0.06 %
|
|
Money market
accounts
|
378,931
|
2,866
|
3.00 %
|
|
320,202
|
156
|
0.19 %
|
|
Savings
deposits
|
126,071
|
72
|
0.23 %
|
|
167,302
|
23
|
0.05 %
|
|
Time
deposits
|
182,252
|
1,320
|
2.87 %
|
|
144,338
|
105
|
0.29 %
|
|
Fed funds
purchased
|
1,587
|
20
|
5.00 %
|
|
262
|
3
|
4.54 %
|
|
Securities sold
under agreements to repurchase
|
71,492
|
446
|
2.48 %
|
|
71,376
|
32
|
0.18 %
|
|
FHLB
Advances
|
83,261
|
1,079
|
5.14 %
|
|
-
|
-
|
NA
|
|
Other long-term
debt
|
14,964
|
309
|
8.19 %
|
|
14,964
|
191
|
5.06 %
|
|
Total interest-bearing
liabilities
|
1,156,484
|
6,631
|
2.27 %
|
|
1,054,092
|
558
|
0.21 %
|
|
Demand
deposits
|
447,643
|
|
|
|
482,461
|
|
|
|
Allowance for credit
losses - unfunded commitments
|
431
|
|
|
|
-
|
|
|
|
Other
liabilities
|
15,035
|
|
|
|
12,183
|
|
|
|
Shareholders'
equity
|
125,077
|
|
|
|
119,001
|
|
|
|
Total liabilities and
shareholders' equity
|
$ 1,744,670
|
|
|
|
$ 1,667,737
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of deposits,
including demand deposits
|
|
|
1.32 %
|
|
|
|
0.09 %
|
|
Cost of funds,
including demand deposits
|
|
|
1.64 %
|
|
|
|
0.14 %
|
|
Net interest
spread
|
|
|
2.28 %
|
|
|
|
3.19 %
|
|
Net interest
income/margin
|
|
$
12,103
|
2.95 %
|
|
|
$
12,794
|
3.26 %
|
|
Net interest
income/margin (tax equivalent)
|
|
$
12,165
|
2.96 %
|
|
|
$
12,925
|
3.29 %
|
|
FIRST COMMUNITY
CORPORATION
|
Yields on Average
Earning Assets and
|
Rates on Average
Interest-Bearing Liabilities
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2023
|
|
Nine months ended
September 30, 2022
|
|
|
Average
|
Interest
|
Yield/
|
|
Average
|
Interest
|
Yield/
|
|
|
Balance
|
Earned/Paid
|
Rate
|
|
Balance
|
Earned/Paid
|
Rate
|
|
Assets
|
|
|
|
|
|
|
|
|
Earning
assets
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
PPP loans
|
$
191
|
$
4
|
2.80 %
|
|
$
368
|
$
48
|
17.44 %
|
|
Non-PPP loans
|
1,023,237
|
37,273
|
4.87 %
|
|
903,621
|
28,359
|
4.20 %
|
|
Total
loans
|
1,023,428
|
37,277
|
4.87 %
|
|
903,989
|
28,407
|
4.20 %
|
|
Non-taxable
securities
|
50,950
|
1,109
|
2.91 %
|
|
52,480
|
1,140
|
2.90 %
|
|
Taxable
securities
|
502,546
|
12,513
|
3.33 %
|
|
518,651
|
6,126
|
1.58 %
|
|
Int bearing
deposits in other banks
|
34,016
|
1,221
|
4.80 %
|
|
59,050
|
387
|
0.88 %
|
|
Fed funds
sold
|
41
|
1
|
3.26 %
|
|
21
|
-
|
0.00 %
|
|
Total earning
assets
|
1,610,981
|
52,121
|
4.33 %
|
|
1,534,191
|
36,060
|
3.14 %
|
|
Cash and due from
banks
|
25,760
|
|
|
|
27,295
|
|
|
|
Premises and
equipment
|
31,257
|
|
|
|
32,391
|
|
|
|
Goodwill and other
intangibles
|
15,339
|
|
|
|
15,496
|
|
|
|
Other assets
|
54,122
|
|
|
|
46,658
|
|
|
|
Allowance for credit
losses - investments
|
(41)
|
|
|
|
-
|
|
|
|
Allowance for credit
losses - loans
|
(11,563)
|
|
|
|
(11,228)
|
|
|
|
Total assets
|
$ 1,725,855
|
|
|
|
$ 1,644,803
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
Interest-bearing
transaction accounts
|
$
310,598
|
$ 1,115
|
0.48 %
|
|
$
336,584
|
$
138
|
0.05 %
|
|
Money market
accounts
|
350,109
|
6,424
|
2.45 %
|
|
309,717
|
384
|
0.17 %
|
|
Savings
deposits
|
137,529
|
193
|
0.19 %
|
|
155,856
|
65
|
0.06 %
|
|
Time
deposits
|
156,954
|
2,430
|
2.07 %
|
|
149,559
|
387
|
0.35 %
|
|
Fed funds
purchased
|
1,471
|
53
|
4.82 %
|
|
88
|
3
|
4.56 %
|
|
Securities sold
under agreements to repurchase
|
76,129
|
1,165
|
2.05 %
|
|
75,309
|
79
|
0.14 %
|
|
FHLB
Advances
|
87,487
|
3,271
|
5.00 %
|
|
-
|
-
|
NA
|
|
Other long-term
debt
|
14,964
|
873
|
7.80 %
|
|
14,964
|
426
|
3.81 %
|
|
Total interest-bearing
liabilities
|
1,135,241
|
15,524
|
1.83 %
|
|
1,042,077
|
1,482
|
0.19 %
|
|
Demand
deposits
|
452,884
|
|
|
|
466,139
|
|
|
|
Allowance for credit
losses - unfunded commitments
|
404
|
|
|
|
-
|
|
|
|
Other
liabilities
|
14,318
|
|
|
|
12,549
|
|
|
|
Shareholders'
equity
|
123,008
|
|
|
|
124,038
|
|
|
|
Total liabilities and
shareholders' equity
|
$ 1,725,855
|
|
|
|
$ 1,644,803
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of deposits,
including demand deposits
|
|
|
0.96 %
|
|
|
|
0.09 %
|
|
Cost of funds,
including demand deposits
|
|
|
1.31 %
|
|
|
|
0.13 %
|
|
Net interest
spread
|
|
|
2.50 %
|
|
|
|
2.95 %
|
|
Net interest
income/margin
|
|
$
36,597
|
3.04 %
|
|
|
$
34,578
|
3.01 %
|
|
Net interest
income/margin (tax equivalent)
|
|
$
36,833
|
3.06 %
|
|
|
$
34,969
|
3.05 %
|
|
The tables below provide a reconciliation of non‑GAAP measures
to GAAP for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
June
30,
|
|
|
March
31,
|
|
|
December
31,
|
|
|
September
30,
|
|
Tangible book value per common
share
|
|
|
2023
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2022
|
|
Tangible common equity
per common share (non‑GAAP)
|
|
$
|
14.25
|
|
$
|
14.33
|
|
$
|
14.26
|
|
$
|
13.59
|
|
$
|
13.03
|
|
Effect to adjust for
intangible assets
|
|
|
2.01
|
|
|
2.02
|
|
|
2.03
|
|
|
2.03
|
|
|
2.04
|
|
Book value per common
share (GAAP)
|
|
$
|
16.26
|
|
$
|
16.35
|
|
$
|
16.29
|
|
$
|
15.62
|
|
$
|
15.07
|
|
Tangible common shareholders' equity to tangible
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets (non‑GAAP)
|
|
|
6.09
|
%
|
|
6.31
|
%
|
|
6.29
|
%
|
|
6.21
|
%
|
|
6.03
|
%
|
Effect to adjust for
intangible assets
|
|
|
0.80
|
%
|
|
0.82
|
%
|
|
0.83
|
%
|
|
0.87
|
%
|
|
0.88
|
%
|
Common equity to assets
(GAAP)
|
|
|
6.89
|
%
|
|
7.13
|
%
|
|
7.12
|
%
|
|
7.08
|
%
|
|
6.91
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per common share excluding
accumulated other comprehensive
loss
|
|
|
September
30,
2023
|
|
|
June
30,
2023
|
|
|
March 31,
2023
|
|
|
December
31,
2022
|
|
|
September
30,
2022
|
|
Tangible common equity
per common share excluding accumulated other comprehensive loss
(non‑GAAP)
|
|
$
|
18.60
|
|
$
|
18.48
|
|
$
|
18.15
|
|
$
|
17.86
|
|
$
|
17.43
|
|
Effect to adjust for
intangible assets and accumulated other comprehensive
loss
|
|
|
(2.34)
|
|
|
(2.13)
|
|
|
(1.86)
|
|
|
(2.24)
|
|
|
(2.36)
|
|
Book value per common
share (GAAP)
|
|
$
|
16.26
|
|
$
|
16.35
|
|
$
|
16.29
|
|
$
|
15.62
|
|
$
|
15.07
|
|
Tangible common shareholders' equity to tangible
assets excluding accumulated other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets excluding accumulated other comprehensive loss
(non‑GAAP)
|
|
|
7.80
|
%
|
|
7.99
|
%
|
|
7.87
|
%
|
|
8.01
|
%
|
|
7.90
|
%
|
Effect to adjust for
intangible assets and accumulated other comprehensive
loss
|
|
|
(0.91)
|
%
|
|
(0.86)
|
%
|
|
(0.75)
|
%
|
|
(0.93)
|
%
|
|
(0.99)
|
%
|
Common equity to assets
(GAAP)
|
|
|
6.89
|
%
|
|
7.13
|
%
|
|
7.12
|
%
|
|
7.08
|
%
|
|
6.91
|
%
|
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,
|
|
2023
|
2022
|
2023
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Return on average
tangible common equity (non-GAAP)
|
6.35
|
%
|
15.14
|
%
|
12.26
|
%
|
12.48
|
%
|
13.42
|
%
|
11.63
|
%
|
10.61
|
%
|
13.02
|
%
|
Effect to adjust for
intangible assets
|
(0.78)
|
%
|
(1.97)
|
%
|
(1.51)
|
%
|
(1.66)
|
%
|
(1.72)
|
%
|
(1.32)
|
%
|
(1.32)
|
%
|
(1.63)
|
%
|
Return on average
common equity (GAAP)
|
5.57
|
%
|
13.17
|
%
|
10.75
|
%
|
10.82
|
%
|
11.70
|
%
|
10.31
|
%
|
9.29
|
%
|
11.39
|
%
|
|
Three months
ended
|
Nine months
ended
|
|
September
30,
|
|
June
30,
|
September
30,
|
September
30,
|
Pre-tax, pre-provision earnings
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
2023
|
|
2022
|
Pre-tax, pre-provision
earnings (non‑GAAP)
|
$
|
2,694
|
|
$
|
4,433
|
|
$
|
5,050
|
$
|
11,623
|
$
|
13,075
|
Effect to adjust for
pre-tax, pre-provision earnings
|
|
(938)
|
|
|
(1,106)
|
|
|
(1,099)
|
|
(3,077)
|
|
(2,505)
|
Net Income
(GAAP)
|
$
|
1,756
|
|
$
|
3,327
|
|
$
|
3,951
|
$
|
8,546
|
$
|
10,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
June 30,
|
|
|
Growth
|
Annualized
Growth
|
Loans and loan growth
|
|
|
2023
|
|
|
2023
|
|
|
Dollars
|
Rate
|
Non-PPP Loans and
Related Credit Facilities (non-GAAP)
|
|
$
|
1,091,475
|
|
|
1,031,986
|
|
|
59,489
|
|
|
22.9
|
%
|
PPP Related Credit
Facilities
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
%
|
Non-PPP Loans
(non‑GAAP)
|
|
$
|
1,091,475
|
|
$
|
1,031,986
|
|
$
|
59,489
|
|
|
22.9
|
%
|
PPP Loans
|
|
|
170
|
|
|
179
|
|
|
(9)
|
|
|
(19.9)
|
%
|
Total Loans
(GAAP)
|
|
$
|
1,091,645
|
|
$
|
1,032,165
|
|
$
|
59,480
|
|
|
22.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
Growth
|
Annualized
Growth
|
Loans and loan growth
|
|
|
2023
|
|
|
2022
|
|
|
Dollars
|
Rate
|
Non-PPP Loans and
Related Credit Facilities (non-GAAP)
|
|
$
|
1,091,475
|
|
|
949,972
|
|
|
141,503
|
|
|
14.9
|
%
|
PPP Related Credit
Facilities
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
%
|
Non-PPP Loans
(non‑GAAP)
|
|
$
|
1,091,475
|
|
$
|
949,972
|
|
$
|
141,503
|
|
|
14.9
|
%
|
PPP Loans
|
|
|
170
|
|
|
238
|
|
|
(68)
|
|
|
(28.6)
|
%
|
Total Loans
(GAAP)
|
|
$
|
1,091,645
|
|
$
|
950,210
|
|
$
|
141,435
|
|
|
14.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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," "Tangible book value per
common share excluding accumulated other comprehensive loss,"
"Tangible common shareholders' equity to tangible assets excluding
accumulated other comprehensive loss," "Return on average tangible
common equity," "Pre-tax, pre-provision earnings," "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.
- "Tangible book value per common share excluding accumulated
other comprehensive loss" is defined as total equity reduced by
recorded intangible assets and accumulated other comprehensive loss
divided by total common shares outstanding.
- "Tangible common shareholders' equity to tangible assets
excluding accumulated other comprehensive loss" is defined as total
common equity reduced by recorded intangible assets and accumulated
other comprehensive loss divided by total assets reduced by
recorded intangible assets and accumulated other comprehensive
loss.
- "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.
- "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