Highlights for Second Quarter of 2023
- Net income of $3.327 million
during the quarter, an increase of 6.3% year-over-year.
- Pretax pre-provision earnings of $4.433
million during the quarter, an increase of 14.5%
year-over-year.
- Diluted EPS of $0.43 per common
share for the quarter and $0.89
year-to-date through June 30,
2023.
- Total loans increased during the second quarter by $39.4 million, an annualized growth rate of 15.9%
on a linked quarter basis.
- Total deposits of $1.42 billion,
flat on a linked quarter basis.
- Investment advisory line of business Assets Under Management
(AUM) reached a record of $675.4
million at June 30, 2023.
- Key credit quality metrics were excellent with net loan
recoveries, excluding overdrafts, of $14
thousand; non-performing assets ratio of 0.06%, and past due
loan ratio of 0.05%.
- Cash dividend of $0.14 per common
share, which is the 86th consecutive quarter of cash
dividends paid to common shareholders.
LEXINGTON, S.C., July 19,
2023 /PRNewswire/ -- Today, First Community
Corporation (Nasdaq: FCCO), the holding company for First Community
Bank, reported net income for the second quarter of 2023 of
$3.327 million as compared to
$3.130 million in the second quarter
of 2022 and $3.463 million in the
first quarter of 2023. Diluted earnings per common share were
$0.43 for the second quarter of 2023
as compared to $0.41 for the second
quarter of 2022 and $0.45 in the
first quarter of 2023. Pre-tax pre-provision earnings during
the second quarter of 2023 were $4.433
million. This compares to pre-tax pre-provision
earnings of $3.872 million for second
quarter of 2022 and $4.496 million
for the first quarter of 2023.
Year-to-date through June 30,
2023, net income was $6.790
million compared to $6.619
million during the first six months of 2022. Diluted
earnings per share for the first half of 2023 were $0.89, compared to $0.87 during the same time period in 2022.
Pre-tax pre-provision earnings through June
30, 2023 were $8.929
million. This compares to pre-tax pre-provision
earnings of $8.025 million for the
same period in 2022, an increase of 11.3%.
During the second quarter of 2023, the company benefitted from
$226 thousand in non-recurring income
from the gain on sale of Other Real Estate Owned ($105 thousand), a Bank Owned Life Insurance
policy claim ($93 thousand) and a
gain on insurance proceeds ($28
thousand).
Cash Dividend and Capital
The Board of Directors approved a cash dividend for the second
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 August 15, 2023 to shareholders of record as of
August 1, 2023. First Community
President and CEO Mike Crapps
commented, "Our entire board is pleased that our performance
enables the company to continue its cash dividend for the
86th 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 7,593,759 shares outstanding as
of June 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 June 30, 2023, the
bank's regulatory capital ratios (Leverage, Tier I Risk Based and
Total Risk Based) were 8.63%, 13.29%, and 14.35%,
respectively. This compares to the same ratios as of
June 30, 2022 of 8.34%, 13.47%, and
14.57%, respectively. As of June 30,
2023, the bank's Common Equity Tier I ratio was 13.29%
compared to 13.47% at June 30,
2022. The Company's Tangible Common Equity to Tangible
Assets ratio (TCE ratio) was 6.31% at June
30, 2023, compared to 6.29% at March
31, 2023 and 6.12% at June 30,
2022. The TCE ratio, excluding the Accumulated Other
Comprehensive Loss (AOCL), was 7.99% at June
30, 2023, compared to 7.87% as of March 31, 2023 and 7.59% at June 30, 2022.
Tangible Book Value (TBV) per share increased during the quarter
to $14.33 per share at June 30, 2023, from $14.26 per share as of March 31, 2023 and $13.50 as of June
30, 2022. Excluding AOCL, TBV per share increased in
the quarter to $18.48 per share at
June 30, 2023 from $18.15 per share as of March 31, 2023 and $17.00 at June 30,
2022.
Loan Portfolio Quality/Allowance for Loan Losses
The company's asset quality metrics as of June 30, 2023 were excellent. The
non-performing assets ratio as of June 30,
2023 was 0.06% and the total past dues ratio was
0.05%. Non-accrual loans were $83
thousand, which is 0.01% of total loans, at June 30, 2023. This is down from $4.4 million at June 30,
2022 and $4.1 million at
March 31, 2023. This
substantial decrease in non-accrual loan balances is the result of
one large loan relationship which was resolved during the
quarter. This resolution occurred through the foreclosure
process followed by the timely sale of the real estate at a gain to
the bank of $105 thousand. Net
loan recoveries, excluding overdrafts, for the quarter were
$14 thousand and year-to-date through
June 30, 2023 were $29 thousand. The ratio of classified loans
plus OREO now stands at 1.38% of total bank regulatory risk-based
capital as of June 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
|
$85,848,708
|
8.3 %
|
$1,073,109
|
57 %
|
Warehouse &
Industrial
|
$70,880,100
|
6.9 %
|
$793,237
|
60 %
|
Office
|
$64,644,211
|
6.3 %
|
$695,099
|
62 %
|
Hotel
|
$53,605,788
|
5.2 %
|
$2,978,099
|
66 %
|
There has been much discussion in our industry about the office
space sector of commercial real estate. There are certainly
unresolved questions regarding employees return to work and
potential large office building vacancy rates. 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 represent
$10.5 million in loan outstandings
and have a weighted average loan-to-value of 37%.
Balance Sheet
Total loans increased during the second quarter by $39.4 million, which is an annualized growth rate
of 15.9%. Commercial loan production was $46.4 million during the second quarter compared
to $25.7 million in the first quarter
of 2023. Advances from unfunded commercial construction loans
available for draws was $30.8 million
during the second quarter of 2023 which contributed nicely to our
growth. This compares to $20.9
million in the first quarter of 2023. Loan payoffs and
paydowns were relatively stable on a linked quarter basis and were
down over 55% compared to the second quarter of 2022.
Total deposits were $1.42 billion
at June 30, 2023 which is flat on a
linked quarter basis. Pure deposits, which are defined as
total deposits less certificates of deposits, decreased
$12.5 million during the second
quarter of 2023, ending at $1.3
billion at June 30,
2023. Non-interest bearing accounts decreased $11.8 million during the quarter and at
June 30, 2023 represented 31.5% of
total deposits. This compares to 32.3% as of March 31, 2023. The bank had no brokered
deposits and no listing services deposits at June 30, 2023. Securities sold under
agreements to repurchase, which are related to customer cash
management accounts or business sweep accounts, were $72.1 million at June 30,
2023. Costs of deposits increased on a linked quarter
basis to 0.97% in the second quarter of 2023 from 0.58% in the
first quarter of 2023. Cost of funds also increased on a
linked quarter basis to 1.34% in the second quarter of 2023 from
0.92% in the first quarter of 2023. The cumulative cycle
deposit beta for cost of deposits is 19.8% and for cost of funds is
26.6%. Mr. Crapps commented, "A strength of our bank has been
and continues to be the value of our deposit franchise. In
the second quarter of 2023, we continued to experience pressure on
interest rates for interest bearing deposits as a result of the
rapidly 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 deposits were stable on a
linked quarter."
As of June 30, 2023, the bank had
uninsured deposits of $422.4 million,
or 29.7%, of total bank deposits. Of those uninsured
deposits, $82.4 million, or 5.80%, 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 $340.0
million, or 23.9%, of total deposits at June 30, 2023. The average balance of all
customer deposit accounts as of June, 2023 was $28,049. The average balance for consumer
accounts was $15,425 and for
non-consumer accounts was $61,796.
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 $28.7 million at June 30,
2023 compared to $60.6 million
at March 31, 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. This includes a new line of credit
of $20 million with an additional
financial institution that was added during the second quarter of
2023. There were no borrowings against the above lines of
credit as of June 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
June 30, 2023, the bank had FHLB
advances of $95.0 million.
Therefore, having remaining credit availability under this facility
in excess of $338.8 million, subject
to collateral requirements.
Combined, the company has total remaining credit availability in
excess of $433.8 million as compared
to uninsured deposits of $340.0
million as noted above.
The investment portfolio was $555.9
million at June 30, 2023
compared to $565.4 million at
March 31, 2023. The yield
increased to 3.27% during the second quarter of 2023 as compared to
3.18% in the first quarter of 2023. The modified
duration of the Available-For-Sale portfolio is relatively low at
3.38. AOCL increased to $31.5
million at June 30, 2023 from
$29.5 million at March 31, 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 second
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 second quarter."
Revenue
Net Interest Income/Net Interest Margin
Net interest income was $12.1
million for the second quarter of 2023 compared to first
quarter net interest income of $12.4
million and $11.1 million for
the second quarter of 2022. Second quarter net interest
margin, on a tax equivalent basis, was 3.02% compared to 3.19% in
the first quarter of the year. 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 17 basis point contraction this
quarter compares favorably to the 23 basis points contraction in
the first quarter of 2023.
Effective May 5, 2023, we 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 we 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 $336 thousand during the
quarter. Loan yields and net interest margin both benefitted
during the second quarter with an increase of 14 basis points and 8
basis points, respectively.
Non-Interest Income
Non-interest income in the second quarter of 2023 was
$3.1 million, compared to
$2.6 million in the first quarter of
2023 and $3.0 million in the second
quarter of 2022. As noted above, during the second quarter of
2023, the company benefitted from $226
thousand in non-recurring income from the gain on sale of
Other Real Estate Owned ($105
thousand), a Bank Owned Life Insurance policy claim
($93 thousand) and a gain on
insurance proceeds ($28
thousand).
Total production in the mortgage line of business in the second
quarter of 2023 was $32.3 million
which was comprised of $12.9 million
in secondary market loans, $5.7
million in adjustable rate mortgages (ARMs) and $13.7 million in construction loans. Fee
revenue associated with the secondary market loans was $371 thousand in the second quarter of 2023 with
a gain-on-sale margin of 2.87%. This compares to production
year-over-year of $25.8 million which
was comprised of $16.0 million in
secondary market loans, $5.0 million
in ARMs, and $4.8 million in
construction loans. Fee revenue associated with the secondary
market loans in the second quarter of 2022 was $481 thousand with a gain-on-sale margin of
3.01%. Mr. Crapps noted, "The bank continues to have success
with emphasis on its adjustable rate mortgage and construction loan
products. As these loans are being held on our balance sheet,
the immediate result is less gain-on-sale revenue, but additional
loan growth and interest income. Additionally, this is
building a pipeline for future gain-on-sale revenue when the
interest rate environment changes."
Total assets under management (AUM) in the investment advisory
line of business were $675.4 million
at June 30, 2023 from $621.7 million at March
31, 2023 and $558.8 million at
December 31, 2022. This record in AUM
is driven by a combination of net new asset growth and market
appreciation. Revenue in this line of business was $1.1 million in the second quarter of 2023,
basically flat on a linked quarter and compared to $1.2 million in the second quarter of 2022.
Non-Interest Expense
Non-interest expense was $10.8
million in the second quarter of 2023 an increase of
$319 thousand over the first quarter
of the year. Salaries and benefits expense increased
$177 thousand on a linked quarter due
to higher variable compensation expenses in the mortgage line of
business and the full quarter impact of annual increases for exempt
employees which were effective on March
1, 2023. During the second quarter of 2023, the
company benefited from a recovery in Other Real Estate expenses of
$30 thousand compared to a recovery
of $133 thousand in the first quarter
of the year. The recoveries in both quarters are related to the
previously discussed loan resolution.
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" 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
|
|
|
June 30,
|
March 31,
|
December 31,
|
September
30,
|
June 30,
|
|
|
2023
|
2023
|
2022
|
2022
|
2022
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
1,740,982
|
$
1,735,398
|
$
1,672,946
|
$
1,651,829
|
$
1,684,824
|
Other Short-term
Investments and CD's1
|
|
28,710
|
60,597
|
12,937
|
17,244
|
76,918
|
Investment
Securities
|
|
|
|
|
|
|
Investments
Held-to-Maturity
|
|
221,430
|
223,137
|
228,701
|
233,301
|
233,730
|
Investments
Available-for-Sale
|
|
328,239
|
336,457
|
331,862
|
338,350
|
337,254
|
Other Investments at
Cost
|
|
6,208
|
5,768
|
4,191
|
1,929
|
1,929
|
Total
Investment Securities
|
|
555,877
|
565,362
|
564,754
|
573,580
|
572,913
|
Loans
Held-for-Sale
|
|
4,195
|
1,312
|
1,779
|
1,758
|
4,533
|
Loans
|
|
|
|
|
|
|
Paycheck Protection Program
(PPP) Loans
|
|
179
|
200
|
219
|
238
|
250
|
Non-PPP Loans
|
|
1,031,986
|
992,520
|
980,638
|
949,972
|
916,082
|
Total
Loans
|
|
1,032,165
|
992,720
|
980,857
|
950,210
|
916,332
|
Allowance for
Credit Losses - Investments
|
|
37
|
42
|
-
|
-
|
-
|
Allowance for
Credit Losses - Loans
|
|
11,554
|
11,420
|
11,336
|
11,315
|
11,220
|
Allowance for
Credit Losses - Unfunded Commitments
|
|
429
|
382
|
-
|
-
|
-
|
Goodwill
|
|
14,637
|
14,637
|
14,637
|
14,637
|
14,637
|
Other
Intangibles
|
|
683
|
722
|
761
|
801
|
840
|
Total
Deposits
|
|
1,420,753
|
1,420,157
|
1,385,382
|
1,436,256
|
1,468,975
|
Securities Sold
Under Agreements to Repurchase
|
|
72,103
|
76,975
|
68,743
|
73,659
|
71,800
|
Federal Funds
Purchased
|
|
-
|
-
|
22,000
|
-
|
-
|
Federal Home
Loan Bank Advances
|
|
95,000
|
85,000
|
50,000
|
-
|
-
|
Junior
Subordinated Debt
|
|
14,964
|
14,964
|
14,964
|
14,964
|
14,964
|
Shareholders'
Equity
|
|
124,148
|
123,581
|
118,361
|
114,145
|
117,592
|
|
|
|
|
|
|
|
Book Value Per
Common Share
|
|
$
16.35
|
$
16.29
|
$
15.62
|
$
15.07
|
$
15.54
|
Tangible Book
Value Per Common Share
|
|
$
14.33
|
$
14.26
|
$
13.59
|
$
13.03
|
$
13.50
|
Tangible Book
Value Per Common Share excluding Accumulated Other
|
$
18.48
|
$
18.15
|
$
17.86
|
$
17.43
|
$
17.00
|
Comprehensive Income
(Loss)
|
|
|
|
|
|
|
Equity to
Assets
|
|
7.13 %
|
7.12 %
|
7.08 %
|
6.91 %
|
6.98 %
|
Tangible Common
Equity to Tangible Assets (TCE Ratio)
|
6.31 %
|
6.29 %
|
6.21 %
|
6.03 %
|
6.12 %
|
TCE Ratio
excluding Accumulated Other Comprehensive Income (Loss)
|
7.99 %
|
7.87 %
|
8.01 %
|
7.90 %
|
7.59 %
|
Loan to Deposit
Ratio (Includes Loans Held-for-Sale)
|
|
72.94 %
|
69.99 %
|
70.93 %
|
66.28 %
|
62.69 %
|
Loan to Deposit
Ratio (Excludes Loans Held-for-Sale)
|
|
72.65 %
|
69.90 %
|
70.80 %
|
66.16 %
|
62.38 %
|
Allowance for
Credit Losses - Loans/Loans
|
|
1.12 %
|
1.15 %
|
1.16 %
|
1.19 %
|
1.22 %
|
|
|
|
|
|
|
|
Regulatory Capital
Ratios (Bank):
|
|
|
|
|
|
|
Leverage
Ratio
|
|
8.63 %
|
8.68 %
|
8.63 %
|
8.53 %
|
8.34 %
|
Tier 1 Capital
Ratio
|
|
13.29 %
|
13.55 %
|
13.49 %
|
13.42 %
|
13.47 %
|
Total Capital
Ratio
|
|
14.35 %
|
14.63 %
|
14.54 %
|
14.49 %
|
14.57 %
|
Common Equity
Tier 1 Capital Ratio
|
|
13.29 %
|
13.55 %
|
13.49 %
|
13.42 %
|
13.47 %
|
Tier 1
Regulatory Capital
|
|
$
150,414
|
$
147,877
|
$
145,578
|
$
142,305
|
$
137,910
|
Total Regulatory
Capital
|
|
$
162,434
|
$
159,721
|
$
156,914
|
$
153,620
|
$
149,130
|
Common Equity
Tier 1 Capital
|
|
$
150,414
|
$
147,877
|
$
145,578
|
$
142,305
|
$
137,910
|
|
|
|
|
|
|
|
1
Includes federal funds sold and
interest-bearing deposits
|
|
|
|
|
|
Average
Balances:
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
|
Average Total
Assets
|
|
$
1,737,044
|
$
1,643,908
|
|
$
1,716,463
|
$
1,633,146
|
Average Loans
(Includes Loans Held-for-Sale)
|
|
1,017,215
|
896,619
|
|
1,001,942
|
886,540
|
Average
Investment Securities
|
|
562,629
|
560,417
|
|
563,866
|
566,092
|
Average
Short-term Investments and CDs1
|
|
42,576
|
72,816
|
|
36,391
|
70,020
|
Average Earning
Assets
|
|
1,622,420
|
1,529,852
|
|
1,602,199
|
1,522,652
|
Average
Deposits
|
|
1,409,131
|
1,427,975
|
|
1,395,495
|
1,401,540
|
Average Other
Borrowings
|
|
189,409
|
87,084
|
|
184,496
|
92,272
|
Average
Shareholders' Equity
|
|
124,179
|
116,067
|
|
122,129
|
126,598
|
|
|
|
|
|
|
|
Asset
Quality:
|
|
As
of
|
|
|
June 30,
|
March 31,
|
December 31,
|
September
30,
|
June 30,
|
|
|
2023
|
2023
|
2022
|
2022
|
2022
|
Loan Risk Rating by
Category (End of Period)
|
|
|
|
|
|
|
Special
Mention
|
|
$
565
|
$
646
|
$
557
|
$
596
|
$
684
|
Substandard
|
|
1,312
|
5,306
|
6,082
|
6,539
|
6,710
|
Doubtful
|
|
-
|
-
|
-
|
-
|
-
|
Pass
|
|
1,030,288
|
986,768
|
974,218
|
943,075
|
908,938
|
Total Loans
|
|
$
1,032,165
|
$
992,720
|
$
980,857
|
$
950,210
|
$
916,332
|
Nonperforming
Assets
|
|
|
|
|
|
|
Non-accrual
Loans
|
|
$
82
|
$
4,126
|
$
4,895
|
$
4,875
|
$
4,351
|
Other Real
Estate Owned and Repossessed Assets
|
|
927
|
934
|
934
|
984
|
984
|
Accruing Loans
Past Due 90 Days or More
|
|
1
|
-
|
2
|
30
|
-
|
Total Nonperforming
Assets
|
|
$
1,010
|
$
5,060
|
$
5,831
|
$
5,889
|
$
5,335
|
Accruing Trouble Debt
Restructurings
|
|
$
84
|
$
86
|
$
88
|
$
91
|
$
125
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2023
|
2022
|
|
2023
|
2022
|
Loans
Charged-off
|
|
$
1
|
$
2
|
|
$
3
|
$
3
|
Overdrafts
Charged-off
|
|
26
|
16
|
|
33
|
30
|
Loan
Recoveries
|
|
(15)
|
(244)
|
|
(32)
|
(264)
|
Overdraft
Recoveries
|
|
(2)
|
(1)
|
|
(9)
|
(5)
|
Net Charge-offs
(Recoveries)
|
|
$
10
|
$
(227)
|
|
$
(5)
|
$
(236)
|
Net Charge-offs /
(Recoveries) to Average Loans2
|
|
0.00 %
|
(0.10 %)
|
|
(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
|
|
Six months
ended
|
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
|
|
2023
|
2022
|
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
17,497
|
$
11,513
|
|
$
15,890
|
$
11,195
|
|
$
33,387
|
$
22,708
|
|
Interest
expense
|
|
5,360
|
462
|
|
3,533
|
462
|
|
8,893
|
924
|
|
Net interest
income
|
|
12,137
|
11,051
|
|
12,357
|
10,733
|
|
24,494
|
21,784
|
|
Provision for
(release of) credit losses
|
|
186
|
(70)
|
|
70
|
(125)
|
|
256
|
(195)
|
|
Net interest
income after provision for (release of) credit losses
|
11,951
|
11,121
|
|
12,287
|
10,858
|
|
24,238
|
21,979
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
Deposit service charges
|
|
220
|
262
|
|
232
|
265
|
|
452
|
527
|
|
Mortgage banking income
|
|
371
|
481
|
|
155
|
839
|
|
526
|
1,320
|
|
Investment advisory fees and non-deposit commissions
|
1,081
|
1,195
|
|
1,067
|
1,198
|
|
2,148
|
2,393
|
|
Gain
(loss) on sale of other assets
|
|
105
|
(45)
|
|
-
|
-
|
|
105
|
(45)
|
|
Other non-recurring income
|
|
121
|
5
|
|
-
|
4
|
|
121
|
9
|
|
Other
|
|
1,153
|
1,111
|
|
1,121
|
1,068
|
|
2,274
|
2,179
|
|
Total
non-interest income
|
|
3,051
|
3,009
|
|
2,575
|
3,374
|
|
5,626
|
6,383
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
6,508
|
6,175
|
|
6,331
|
6,119
|
|
12,839
|
12,294
|
|
Occupancy
|
|
813
|
786
|
|
830
|
705
|
|
1,643
|
1,491
|
|
Equipment
|
|
377
|
329
|
|
336
|
332
|
|
713
|
661
|
|
Marketing and public relations
|
|
370
|
446
|
|
346
|
361
|
|
716
|
807
|
|
FDIC
assessment
|
|
221
|
105
|
|
182
|
130
|
|
403
|
235
|
|
Other real estate expenses
|
|
(30)
|
29
|
|
(133)
|
47
|
|
(163)
|
76
|
|
Amortization of intangibles
|
|
40
|
40
|
|
39
|
39
|
|
79
|
79
|
|
Other
|
|
2,456
|
2,278
|
|
2,505
|
2,221
|
|
4,961
|
4,499
|
|
Total
non-interest expense
|
|
10,755
|
10,188
|
|
10,436
|
9,954
|
|
21,191
|
20,142
|
|
Income before
taxes
|
|
4,247
|
3,942
|
|
4,426
|
4,278
|
|
8,673
|
8,220
|
|
Income tax
expense
|
|
920
|
812
|
|
963
|
789
|
|
1,883
|
1,601
|
|
Net
income
|
|
$ 3,327
|
$ 3,130
|
|
$ 3,463
|
$ 3,489
|
|
$ 6,790
|
$ 6,619
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data
|
|
|
|
|
|
|
|
|
|
|
Net income,
basic
|
|
$ 0.44
|
$
0.42
|
|
$ 0.46
|
$ 0.46
|
|
$ 0.90
|
$ 0.88
|
|
Net income,
diluted
|
|
$ 0.43
|
$
0.41
|
|
$ 0.45
|
$ 0.46
|
|
$ 0.89
|
$ 0.87
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number
of shares outstanding - basic
|
7,564,928
|
7,526,284
|
|
7,555,080
|
7,518,375
|
|
7,559,691
|
7,522,034
|
|
Average number
of shares outstanding - diluted
|
7,654,817
|
7,607,349
|
|
7,644,440
|
7,594,840
|
|
7,648,595
|
7,605,381
|
|
Shares
outstanding period end
|
|
7,593,759
|
7,566,633
|
|
7,587,763
|
7,559,760
|
|
7,593,759
|
7,566,633
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets
|
|
0.77 %
|
0.76 %
|
|
0.83 %
|
0.87 %
|
|
0.80 %
|
0.82 %
|
|
Return on
average common equity
|
|
10.75 %
|
10.82 %
|
|
11.70 %
|
10.31 %
|
|
11.21 %
|
10.54 %
|
|
Return on
average tangible common equity
|
|
12.26 %
|
12.48 %
|
|
13.42 %
|
11.63 %
|
|
12.82 %
|
12.02 %
|
|
Net interest
margin (non taxable equivalent)
|
3.00 %
|
2.90 %
|
|
3.17 %
|
2.87 %
|
|
3.08 %
|
2.89 %
|
|
Net interest
margin (taxable equivalent)
|
|
3.02 %
|
2.93 %
|
|
3.19 %
|
2.91 %
|
|
3.10 %
|
2.92 %
|
|
Efficiency
ratio1
|
|
71.52 %
|
71.60 %
|
|
69.43 %
|
69.93 %
|
|
70.47 %
|
70.77 %
|
|
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 June
30, 2023
|
|
Three months ended June
30, 2022
|
|
Average
|
Interest
|
Yield/
|
|
Average
|
Interest
|
Yield/
|
|
Balance
|
Earned/Paid
|
Rate
|
|
Balance
|
Earned/Paid
|
Rate
|
Assets
|
|
|
|
|
|
|
|
Earning
assets
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
PPP loans
|
$
190
|
$
1
|
2.11 %
|
|
$
256
|
$
1
|
1.57 %
|
Non-PPP loans
|
1,017,025
|
12,314
|
4.86 %
|
|
896,363
|
9,303
|
4.16 %
|
Total
loans
|
1,017,215
|
12,315
|
4.86 %
|
|
896,619
|
9,304
|
4.16 %
|
Non-taxable
securities
|
50,729
|
368
|
2.91 %
|
|
52,064
|
375
|
2.89 %
|
Taxable
securities
|
511,900
|
4,223
|
3.31 %
|
|
508,353
|
1,674
|
1.32 %
|
Int bearing
deposits in other banks
|
42,576
|
591
|
5.57 %
|
|
72,813
|
160
|
0.88 %
|
Fed funds
sold
|
-
|
-
|
NA
|
|
3
|
-
|
0.00 %
|
Total earning
assets
|
1,622,420
|
17,497
|
4.33 %
|
|
1,529,852
|
11,513
|
3.02 %
|
Cash and due from
banks
|
25,490
|
|
|
|
28,379
|
|
|
Premises and
equipment
|
31,320
|
|
|
|
32,442
|
|
|
Goodwill and other
intangibles
|
15,339
|
|
|
|
15,496
|
|
|
Other assets
|
54,074
|
|
|
|
48,950
|
|
|
Allowance for credit
losses - investments
|
(42)
|
|
|
|
-
|
|
|
Allowance for credit
losses - loans
|
(11,557)
|
|
|
|
(11,211)
|
|
|
Total assets
|
$ 1,737,044
|
|
|
|
$ 1,643,908
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
Interest-bearing
transaction accounts
|
$
313,627
|
$
374
|
0.48 %
|
|
$
342,289
|
$
45
|
0.05 %
|
Money market
accounts
|
359,274
|
2,230
|
2.49 %
|
|
313,141
|
117
|
0.15 %
|
Savings
deposits
|
133,823
|
60
|
0.18 %
|
|
154,687
|
22
|
0.06 %
|
Time
deposits
|
149,899
|
728
|
1.95 %
|
|
151,549
|
125
|
0.33 %
|
Fed funds
purchased
|
181
|
2
|
4.43 %
|
|
-
|
-
|
NA
|
Securities sold
under agreements to repurchase
|
70,582
|
363
|
2.06 %
|
|
72,120
|
22
|
0.12 %
|
FHLB
Advances
|
103,682
|
1,310
|
5.07 %
|
|
-
|
-
|
NA
|
Other long-term
debt
|
14,964
|
293
|
7.85 %
|
|
14,964
|
131
|
3.51 %
|
Total interest-bearing
liabilities
|
1,146,032
|
5,360
|
1.88 %
|
|
1,048,750
|
462
|
0.18 %
|
Demand
deposits
|
452,508
|
|
|
|
466,309
|
|
|
Allowance for credit
losses - unfunded commitments
|
382
|
|
|
|
-
|
|
|
Other
liabilities
|
13,943
|
|
|
|
12,782
|
|
|
Shareholders'
equity
|
124,179
|
|
|
|
116,067
|
|
|
Total liabilities and
shareholders' equity
|
$ 1,737,044
|
|
|
|
$ 1,643,908
|
|
|
|
|
|
|
|
|
|
|
Cost of deposits,
including demand deposits
|
|
|
0.97 %
|
|
|
|
0.09 %
|
Cost of funds,
including demand deposits
|
|
|
1.34 %
|
|
|
|
0.12 %
|
Net interest
spread
|
|
|
2.45 %
|
|
|
|
2.84 %
|
Net interest
income/margin
|
|
$ 12,137
|
3.00 %
|
|
|
$ 11,051
|
2.90 %
|
Net interest
income/margin (tax equivalent)
|
|
$ 12,213
|
3.02 %
|
|
|
$ 11,180
|
2.93 %
|
FIRST COMMUNITY CORPORATION
|
Yields on Average Earning Assets
and
|
Rates on Average Interest-Bearing
Liabilities
|
|
|
|
|
|
|
|
|
|
Six months ended June
30, 2023
|
|
Six months ended June
30, 2022
|
|
Average
|
Interest
|
Yield/
|
|
Average
|
Interest
|
Yield/
|
|
Balance
|
Earned/Paid
|
Rate
|
|
Balance
|
Earned/Paid
|
Rate
|
Assets
|
|
|
|
|
|
|
|
Earning
assets
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
PPP loans
|
$
200
|
$
2
|
2.02 %
|
|
$
432
|
$
46
|
21.47 %
|
Non-PPP loans
|
1,001,742
|
23,471
|
4.72 %
|
|
886,108
|
18,261
|
4.16 %
|
Total
loans
|
1,001,942
|
23,473
|
4.72 %
|
|
886,540
|
18,307
|
4.16 %
|
Non-taxable
securities
|
51,143
|
743
|
2.93 %
|
|
52,352
|
755
|
2.91 %
|
Taxable
securities
|
512,723
|
8,284
|
3.26 %
|
|
513,740
|
3,453
|
1.36 %
|
Int bearing
deposits in other banks
|
36,328
|
886
|
4.92 %
|
|
70,011
|
193
|
0.56 %
|
Fed funds
sold
|
63
|
1
|
3.20 %
|
|
9
|
-
|
0.00 %
|
Total earning
assets
|
1,602,199
|
33,387
|
4.20 %
|
|
1,522,652
|
22,708
|
3.01 %
|
Cash and due from
banks
|
25,749
|
|
|
|
28,444
|
|
|
Premises and
equipment
|
31,347
|
|
|
|
32,581
|
|
|
Goodwill and other
intangibles
|
15,358
|
|
|
|
15,516
|
|
|
Other assets
|
53,317
|
|
|
|
45,171
|
|
|
Allowance for credit
losses - investments
|
(43)
|
|
|
|
-
|
|
|
Allowance for credit
losses - loans
|
(11,464)
|
|
|
|
(11,218)
|
|
|
Total assets
|
$ 1,716,463
|
|
|
|
$ 1,633,146
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
Interest-bearing
transaction accounts
|
$
317,039
|
$
596
|
0.38 %
|
|
$
337,059
|
$
90
|
0.05 %
|
Money market
accounts
|
335,460
|
3,559
|
2.14 %
|
|
304,387
|
228
|
0.15 %
|
Savings
deposits
|
143,353
|
120
|
0.17 %
|
|
150,039
|
42
|
0.06 %
|
Time
deposits
|
144,096
|
1,110
|
1.55 %
|
|
152,213
|
282
|
0.37 %
|
Fed funds
purchased
|
1,411
|
33
|
4.72 %
|
|
-
|
-
|
NA
|
Securities sold
under agreements to repurchase
|
78,485
|
719
|
1.85 %
|
|
77,308
|
47
|
0.12 %
|
FHLB
Advances
|
89,636
|
2,192
|
4.93 %
|
|
-
|
-
|
NA
|
Other long-term
debt
|
14,964
|
564
|
7.60 %
|
|
14,964
|
235
|
3.17 %
|
Total interest-bearing
liabilities
|
1,124,444
|
8,893
|
1.59 %
|
|
1,035,970
|
924
|
0.18 %
|
Demand
deposits
|
455,547
|
|
|
|
457,842
|
|
|
Allowance for credit
losses - unfunded commitments
|
390
|
|
|
|
-
|
|
|
Other
liabilities
|
13,953
|
|
|
|
12,736
|
|
|
Shareholders'
equity
|
122,129
|
|
|
|
126,598
|
|
|
Total liabilities and
shareholders' equity
|
$ 1,716,463
|
|
|
|
$ 1,633,146
|
|
|
|
|
|
|
|
|
|
|
Cost of deposits,
including demand deposits
|
|
|
0.78 %
|
|
|
|
0.09 %
|
Cost of funds,
including demand deposits
|
|
|
1.14 %
|
|
|
|
0.12 %
|
Net interest
spread
|
|
|
2.61 %
|
|
|
|
2.83 %
|
Net interest
income/margin
|
|
$ 24,494
|
3.08 %
|
|
|
$ 21,784
|
2.89 %
|
Net interest
income/margin (tax equivalent)
|
|
$ 24,669
|
3.10 %
|
|
|
$ 22,044
|
2.92 %
|
The tables below provide a reconciliation of non‑GAAP measures
to GAAP for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
March
31,
|
|
|
December
31,
|
|
|
September
30,
|
|
|
June
30,
|
|
Tangible book value per common
share
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2022
|
|
|
2022
|
|
Tangible common equity
per common share (non‑GAAP)
|
|
$
|
14.33
|
|
$
|
14.26
|
|
$
|
13.59
|
|
$
|
13.03
|
|
$
|
13.50
|
|
Effect to adjust for
intangible assets
|
|
|
2.02
|
|
|
2.03
|
|
|
2.03
|
|
|
2.04
|
|
|
2.04
|
|
Book value per common
share (GAAP)
|
|
$
|
16.35
|
|
$
|
16.29
|
|
$
|
15.62
|
|
$
|
15.07
|
|
$
|
15.54
|
|
Tangible common shareholders' equity to tangible
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets (non‑GAAP)
|
|
|
6.31
|
%
|
|
6.29
|
%
|
|
6.21
|
%
|
|
6.03
|
%
|
|
6.12
|
%
|
Effect to adjust for
intangible assets
|
|
|
0.82
|
%
|
|
0.83
|
%
|
|
0.87
|
%
|
|
0.88
|
%
|
|
0.86
|
%
|
Common equity to assets
(GAAP)
|
|
|
7.13
|
%
|
|
7.12
|
%
|
|
7.08
|
%
|
|
6.91
|
%
|
|
6.98
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per common share excluding
accumulated other comprehensive
loss
|
|
|
June
30,
2023
|
|
|
March
31,
2023
|
|
|
December
31,
2022
|
|
|
September
30,
2022
|
|
|
June
30,
2022
|
|
Tangible common equity
per common share excluding
accumulated other comprehensive loss
(non‑GAAP)
|
|
$
|
18.48
|
|
$
|
18.15
|
|
$
|
17.86
|
|
$
|
17.43
|
|
$
|
17.00
|
|
Effect to adjust for
intangible assets and accumulated
other comprehensive loss
|
|
|
(2.13)
|
|
|
(1.86)
|
|
|
(2.24)
|
|
|
(2.36)
|
|
|
(1.46)
|
|
Book value per common
share (GAAP)
|
|
$
|
16.35
|
|
$
|
16.29
|
|
$
|
15.62
|
|
$
|
15.07
|
|
$
|
15.54
|
|
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)
|
|
|
7.99
|
%
|
|
7.87
|
%
|
|
8.01
|
%
|
|
7.90
|
%
|
|
7.59
|
%
|
Effect to adjust for
intangible assets and accumulated
other comprehensive loss
|
|
|
(0.86)
|
%
|
|
(0.75)
|
%
|
|
(0.93)
|
%
|
|
(0.99)
|
%
|
|
(0.61)
|
%
|
Common equity to assets
(GAAP)
|
|
|
7.13
|
%
|
|
7.12
|
%
|
|
7.08
|
%
|
|
6.91
|
%
|
|
6.98
|
%
|
Return on average tangible
common equity
|
Three months
ended
June 30,
|
Three months
ended
March 31,
|
|
Six months
ended
June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
2022
|
|
2023
|
|
2022
|
|
Return on average
tangible
common equity (non-GAAP)
|
12.26
|
%
|
12.48
|
%
|
13.42
|
%
|
11.63
|
%
|
12.82
|
%
|
12.02
|
%
|
Effect to adjust for
intangible
assets
|
(1.51)
|
%
|
(1.66)
|
%
|
(1.72)
|
%
|
(1.32)
|
%
|
(1.61)
|
%
|
(1.48)
|
%
|
Return on average
common
equity (GAAP)
|
10.75
|
%
|
10.82
|
%
|
11.70
|
%
|
10.31
|
%
|
11.21
|
%
|
10.54
|
%
|
|
Three months
ended
|
Six months
ended
|
|
June
30,
|
|
March
31,
|
June
30,
|
June 30,
|
Pre-tax, pre-provision earnings
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
2023
|
|
2022
|
Pre-tax, pre-provision
earnings (non‑GAAP)
|
$
|
4,433
|
|
$
|
4,496
|
|
$
|
3,872
|
$
|
8,929
|
$
|
8,025
|
Effect to adjust for
pre-tax, pre-provision earnings
|
|
(1,106)
|
|
|
(1,033)
|
|
|
(742)
|
|
(2,139)
|
|
(1,406)
|
Net Income
(GAAP)
|
$
|
3,327
|
|
$
|
3,463
|
|
$
|
3,130
|
$
|
6,790
|
$
|
6,619
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
June 30,
|
June 30,
|
Net interest margin excluding PPP
Loans
|
|
|
2023
|
|
|
2022
|
|
|
|
2023
|
2022
|
Net interest margin
excluding PPP loans (non-GAAP)
|
|
|
3.00 %
|
|
|
2.90 %
|
|
|
|
3.08 %
|
2.88 %
|
Effect to adjust for
PPP loans
|
|
|
0.00
|
|
|
0.00
|
|
|
|
0.00
|
0.01
|
Net interest margin
(GAAP)
|
|
|
3.00 %
|
|
|
2.90 %
|
|
|
|
3.08 %
|
2.89 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months ended
|
|
|
|
June 30,
|
|
June 30,
|
Net interest margin on a tax-equivalent basis
excluding
PPP Loans
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net interest margin on
a tax-equivalent basis excluding
PPP loans (non-GAAP)
|
|
|
3.02 %
|
|
2.93 %
|
|
3.11 %
|
|
2.91 %
|
Effect to adjust for
PPP loans
|
|
|
0.00
|
|
0.00
|
|
(0.01)
|
|
0.01
|
Net interest margin on
a tax equivalent basis (GAAP)
|
|
|
3.02 %
|
|
2.93 %
|
|
3.10 %
|
|
2.92 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
March 31,
|
|
|
Growth
|
Annualized
Growth
|
Loans and loan growth
|
|
|
2023
|
|
|
2023
|
|
|
Dollars
|
Rate
|
Non-PPP Loans and
Related Credit Facilities (non-GAAP)
|
|
$
|
1,031,986
|
|
|
992,520
|
|
|
39,466
|
|
|
15.9
|
%
|
PPP Related Credit
Facilities
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
%
|
Non-PPP Loans
(non‑GAAP)
|
|
$
|
1,031,986
|
|
$
|
992,520
|
|
$
|
39,466
|
|
|
15.9
|
%
|
PPP Loans
|
|
|
179
|
|
|
200
|
|
|
(21)
|
|
|
(42.1)
|
%
|
Total Loans
(GAAP)
|
|
$
|
1,032,165
|
|
$
|
992,720
|
|
$
|
39,445
|
|
|
15.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
Growth
|
Annualized
Growth
|
Loans and loan growth
|
|
|
2023
|
|
|
2022
|
|
|
Dollars
|
Rate
|
Non-PPP Loans and
Related Credit Facilities (non-GAAP)
|
|
$
|
1,031,986
|
|
|
916,082
|
|
|
115,904
|
|
|
12.7
|
%
|
PPP Related Credit
Facilities
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
%
|
Non-PPP Loans
(non‑GAAP)
|
|
$
|
1,031,986
|
|
$
|
916,082
|
|
$
|
115,904
|
|
|
12.7
|
%
|
PPP Loans
|
|
|
179
|
|
|
250
|
|
|
(71)
|
|
|
(28.4)
|
%
|
Total Loans
(GAAP)
|
|
$
|
1,032,165
|
|
$
|
916,332
|
|
$
|
115,833
|
|
|
12.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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," "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.
- "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.
- "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