First Community Corporation Announces Annual and Fourth Quarter Results along with Cash Dividend

Jan 22, 2014, 09:00 ET from First Community Corporation

LEXINGTON, S.C., Jan. 22, 2014 /PRNewswire/ --

Highlights

  • 2013 net income of $4,137,000 or $0.78 per common share
  • Cash dividend of $0.06 per common share, which is the 48th consecutive quarter of cash dividends paid to common shareholders
  • Regulatory capital ratios of 10.77% (Tier 1 Leverage) and 18.68% (Total Capital) along with Tangible Common Equity / Tangible Assets (TCE/TA) ratio of 8.23%
  • Non-performing assets (NPAs) of 1.39%, which we believe is better than the average peer group ratio
  • Loan portfolio growth in five consecutive quarters and a 4.7% increase in 2013
  • The cost of total deposits declined an additional 2 basis points from 33 basis points in the third quarter to 31 basis points in the fourth quarter
  • Diversified revenue model shows continued strength as net-interest income and net-interest margin increased
  • Continued progress toward finalizing the merger with Savannah River Financial Corporation

(Logo: http://photos.prnewswire.com/prnh/20030508/FCCOLOGO )

Today, First Community Corporation (Nasdaq: FCCO), the holding company for First Community Bank, reported net income available to common shareholders for the fourth quarter of 2013.  Net income available to common shareholders for the fourth quarter of 2013 was $850 thousand as compared to $1.021 million in the fourth quarter of 2012.  Diluted earnings per common share were $0.16 for the fourth quarter of 2013 as compared to $0.19 for the fourth quarter of 2012.  During the fourth quarter of 2013, the company incurred $506 thousand in expenses related to the previously announced merger and reported losses on sales of securities in the amount of $79 thousand.  These expenses were partially offset by the reversal of a deferred tax valuation reserve established in a prior period for a deferred capital loss.  Excluding these items, the company estimates reported net income would have been $ 1.1 million or $ 0.20 per common share for the fourth quarter of 2013.

For the year ended December 31, 2013 net income available to common shareholders was $4.14 million compared to $3.29 million during year ended December 31, 2012.  Diluted earnings per share for 2013 were $0.78, as compared to $0.79 for the same time period in 2012.  Excluding the impact of merger expenses, loss on early extinguishment of debt, the gain on the sale of securities, and the above mentioned tax matter, the company estimates reported 2013 net income would have been $4.3 million or $ 0.81 per common share.

Earlier in the third quarter, the company announced the signing of a definitive merger agreement under which First Community has agreed to acquire Savannah River Financial Corporation in a cash and stock transaction with a total current value of approximately $33.6 million.  Upon completion of the transaction, the combined company will have approximately $765 million in total assets, $620 million in total deposits, and $450 million in total loans.  The transaction will create a 13-office banking company.  The merger agreement has been unanimously approved by the Board of Directors of each company.  Additionally, the necessary regulatory approvals have been obtained and the shareholders of both companies are scheduled to meet on January 29, 2014 to vote on the merger.  If approved, the closing of the transaction is expected to occur on  February 1, 2014.

First Community President and CEO Michael Crapps commented, "As our teams have worked to prepare to combine the operations of our two banks and as we have learned more about each other and our markets, we are even more excited about this partnership." 

As previously announced, the company plans to expand its footprint with a banking office in downtown Columbia.  Renovations are underway at the site located at 1213 Lady Street, near Main Street.  The office is expected to open in May of 2014 giving the company a highly visible presence in the heart of the city.  The bank's financial planning team, First Community Financial Consultants, will relocate from their Lincoln Street office to the second floor of the new downtown location.  "The downtown area will be a great addition to the First Community family. It's experiencing tremendous growth and the timing was right to bring our unique style of banking to the businesses and residents that call Main Street home," said Mr. Crapps. "We look forward to working with downtown businesses and professionals to meet their financial goals."

Cash Dividend and Capital

The Board of Directors has approved a cash dividend for the fourth quarter of 2013.  The company will pay a $0.06 per share dividend to holders of the company's common stock.  This dividend is payable February 14, 2014 to shareholders of record as of January 31, 2014.  Mr. Crapps commented, "Our entire board is pleased that our performance enables the company to continue its cash dividend for the 48th consecutive quarter.  On two occasions earlier this year, the company increased the cash dividend and for the year of 2013, the payout ratio was 28.2%, which is within the company's targeted payout range that is believed to be appropriate for the company at this time." 

Each of the regulatory capital ratios (Leverage, Tier I Risk Based and Total Risk Based) exceed the well capitalized minimum levels currently required by regulatory statute.  At December 31, 2013, the company's regulatory capital ratios (Leverage, Tier I Risk Based and Total Risk Based) were 10.77%, 17.60%, and 18.68%, respectively.  This compares to the same ratios as of December 31 2012 of 10.63%, 17.39%, and 18.64%, respectively.  Additionally, the regulatory capital ratios for the company's wholly owned subsidiary, First Community Bank, were 10.30%, 16.84%, and 17.92% respectively as of December 31, 2013.  Further, the company's ratio of tangible common equity to tangible assets indicates a high quality of capital with a ratio of 8.23% as of December 31, 2013. 

On a year-over-year comparison basis, tangible book value per share decreased $0.40 from $10.23 to $9.83.  This decline results from the decrease in market value of our available-for-sale investment portfolio (AFS portfolio) solely as a result of the increase in interest rates during the period.  It should be noted that excluding this Accumulated Other Comprehensive Income (AOCI), the tangible book value increased $0.53 during this same time period from $9.77 to $10.30.  The company believes its balance sheet as a whole is currently positioned for a rising rate environment.  The change in market value of the AFS portfolio is the only segment of the balance sheet that is reflected in the equity section and as such can result in some volatility in the calculated tangible book value per share as interest rates fluctuate.  The company attempts to manage this volatility by balancing the overall AFS portfolio duration.

Asset Quality

Non-performing assets remained relatively stable, increasing slightly by $64 thousand to $8.8 million (1.39% of total assets) at the end of the quarter.  This ratio compares favorably with the bank's average peer group non-performing assets ratio which the company believes to be in excess of 3.00%.

Trouble debt restructurings, that are still accruing interest, declined during the quarter to $576 thousand from $584 thousand.  Loans past due 30-89 days decreased to $1.6 million (0.47% of loans) this quarter.   

For the year of 2013, net charge-offs were $932 thousand (0.27%) as compared to the 2012 level of $574 thousand (0.17%).  Net loan charge-offs for the quarter were $253 thousand (0.28% annualized ratio) as compared to the 2012 third quarter total of $154 thousand (0.20% annualized ratio).  The company believes that these levels compare very favorably to its peer group average. 

The ratio of classified loans plus OREO now stands at 20.30% of total bank regulatory risk-based capital as of December 31, 2013. 

Balance Sheet

(Numbers in millions)


Quarter ending

Quarter ending 

Quarter ending  

12 Month

12 Month


12/31/13

12/31/12

9/30/13

$ Variance

% Variance

Assets






Investments 

$227.0

$206.0

$230.7

$21.0

10.2%

Loans        

347.6

332.1

345.1

15.5

4.7%







Liabilities






Total Pure Deposits          

$363.2

$319.5

$371.1

$43.7

13.7%

 Certificates of Deposit      

133.9

155.4

137.5

(21.5)

(13.8%)

Total Deposits             

$497.1

$474.9

$508.6

$22.2

4.7%







Customer Cash Management    

18.6

15.9

17.1

2.7

17.0%

FHLB Advances          

43.3

36.3

34.3

7.0

19.3%







Total Funding               

$559.0

$527.1

560.0

31.9

6.05%

Cost of Funds*            

0.60%

0.87%

0.63%


(27 bps)

     (*including demand deposits)






Cost of Deposits         

0.31%

0.55%

0.33%


(24 bps)

Mr. Crapps commented, "Our success in serving our target market of local business and professional clients is demonstrated in the growth in pure deposits and our loan portfolio.  The momentum in pure deposit growth has continued and during the past twelve months we have increased pure deposits by $43.7 million, which is an increase of 13.7%.  This has positioned us to drive down our cost of deposits by 24 basis points to 0.31% during this same time period.  We are especially pleased to report that we are experiencing a rebound in credit demand and that during the past twelve months the loan portfolio has grown by 4.7% or $15.5 million.  We have now experienced five consecutive quarters of growth in our loan portfolio."

Revenue

Net Interest Income/Net Interest Margin

Net interest income was $4.777 million for the fourth quarter of 2013 which represents a 4.53% increase over the third quarter of 2013.  The net interest margin, on a tax equivalent basis, was 3.29% for the fourth quarter of 2013, which represents an increase from 3.18% during the third quarter of 2013.  Mr. Crapps commented, "The increase in our net interest margin is primarily the result of an increased rate environment in the middle to long end of the yield curve.  The benefit to us is a higher interest rate as we re-invest our cash flows and the continuation of slower prepayments on the mortgage backed securities held in our investment portfolio."

Non-Interest Income

Non-interest income, adjusted for securities gains and losses, was relatively stable on a linked quarter basis.  The mortgage line of business experienced a slight decrease in production to $23.1 million in the quarter, as compared to $25.4 million in the third quarter.  This was offset by an increase in yields to 3.46% from the prior quarter level of 3.03%.  This resulted in mortgage fee revenue increasing slightly to $799 thousand in the fourth quarter from $770 thousand in the third quarter.  Mr. Crapps noted, "Purchase transactions accounted for 75.8% of the production this quarter as compared to 68.9% in the previous quarter.  We had expected to see the decrease in production that we experienced from the second to the third quarter and are pleased now to see production finding a stable level based primarily on purchase transactions."

It is also significant to note the revenue earned this year in the financial planning and investment advisory line of business.  The 2013 revenue of $972 thousand is a 49.3% increase over the 2012 level of $651 thousand.  Revenue from this line of business the most recent two quarters was $279 thousand and $277 thousand, respectively. 

Non-Interest Expense

Non-interest expense increased by $746 thousand on a linked quarter basis to $5.703 million.  The company had $506 thousand in merger expenses related to the above referenced acquisition of Savannah River Financial Corporation during the fourth quarter, as compared to $33 thousand in the third quarter.  As previously announced, the merger is anticipated to close in the first quarter of 2014.  Additional merger expenses will be experienced in the first quarter of 2014The residual increase in non-interest expense is related to adjustment of certain incentive plan accruals and marketing expenses.   

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 operates eleven banking offices located in Lexington, Richland, Newberry and Kershaw counties in addition to First Community Financial Consultants, a financial planning/investment advisory division and Palmetto South Mortgage, a separate mortgage division. 

Non-GAAP Financial Measures

Net income excluding the impact of merger expenses, loss on early extinguishment of debt, the gain on the sale of securities, and the above mentioned tax matter, is a non-GAAP financial measure.  The company believes that this measure provides additional useful information, particularly with respect to period to period performance evaluations.  Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company.   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 or financial condition as reported under GAAP. 

Non-GAAP Reconciliation






(In thousands)


 Quarter ending


 Year Ending 



12/31/13


12/31/13






Net income as reported (GAAP)


$                            850


$                          4,137

  Add income tax expense (benefit)


(53)


1,153

Income before taxes


797


5,290






Non GAAP adjustments:





   Merger expenses


506


539

   (Gain) loss on sale of securities


79


(73)

   Loss on early extinguishment of debt


-


141








585


607






Non GAAP earnings before tax


1,382


5,897

  Income tax expense excluding $132





     reversal of valuation reserve


307


1,563

Non GAAP net income measurement


$                        1,075


$                          4,334

FORWARD-LOOKING STATEMENTS

Certain statements in this news release 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.  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 risk, uncertainties and other factors include, without limitation, the merger of First Community and Savannah River may not be completed; the businesses of First Community and Savannah River may not be integrated successfully or such integration may take longer to accomplish than expected; the expected cost savings and any revenue synergies from the merger may not be fully realized within the expected timeframes; disruption from the merger may make it more difficult to maintain relationships with clients, associates, or suppliers; Savannah River and/or First Community shareholders may not approve the merger; changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; the degree of success and timing of other business strategies; the nature, extent, and timing of governmental actions and reforms; extended disruption of vital infrastructure; and changes in the national or local economy; and other factors described in First Community's Annual Report on Form 10-K and documents subsequently filed by First Community with the Securities and Exchange Commission.

Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate.  Therefore, 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.

ADDITIONAL INFORMATION ABOUT THE PROPOSED MERGER AND WHERE TO FIND IT

First Community has filed relevant documents concerning the proposed merger with the Securities and Exchange Commission (the "SEC"), including a registration statement on Form S-4 that includes a joint proxy statement/prospectus, and may file additional documents with the SEC. Shareholders will be able to obtain a free copy of the joint proxy statement/prospectus, as well as other filings by First Community, at the SEC's internet site (http://www.sec.gov). Copies of the joint proxy statement/prospectus and the other relevant First Community filings with the SEC can also be obtained, without charge, by directing a request to First Community Corporation, 5455 Sunset Blvd., Lexington, SC 29072, Attention: Michael C. Crapps.

SHAREHOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO), AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IF AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION REGARDING THE PROPOSED MERGER.

The directors and executive officers of First Community and other persons may be deemed to be participants in the solicitation of proxies from First Community shareholders in connection with the proposed merger. Information regarding First Community's directors and executive officers is available in its definitive proxy statement (form type DEF 14A) and additional definitive proxy soliciting materials filed with the SEC for First Community's 2013 annual shareholder meeting. Information regarding the participants in the First Community proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the joint proxy statement/prospectus filed with the SEC and may be contained in additional documents that may be filed with the SEC if and when such information becomes available.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful under the securities laws of any such jurisdiction.

FIRST COMMUNITY CORPORATION












BALANCE SHEET DATA;





(Dollars in thousands, except per share data)















At December 31,






2013

2012










  Total Assets



$        633,309

$     602,925



  Other short-term investments (1)


5,927

7,021



  Investment Securities



227,030

205,972



  Loans held for sale



3,790

9,658



  Loans



347,597

332,111



  Allowance for Loan Losses



4,219

4,621



  Total Deposits



497,071

474,977



  Securities Sold Under Agreements to Repurchase

18,634

15,900



  Federal Home Loan Bank Advances


43,325

36,344



  Junior Subordinated Debt



15,464

15,464



  Shareholders' Equity



52,671

54,183










  Book Value Per Common Share 


$              9.93

$         10.37



  Tangible Book Value Per Common Share 


$              9.83

$         10.23



  Tangible Book Value Per Common Share (Excluding AOCI)

$            10.30

$           9.77



  Equity to Assets



8.32%

8.99%



  Tangible common equity to tangible assets


8.23%

8.88%



  Loan to Deposit Ratio



70.69%

71.95%



  Allowance for Loan Losses/Loans


1.21%

1.39%










  Regulatory Ratios:







   Leverage Ratio



10.77%

10.63%



   Tier 1 Capital Ratio



17.60%

17.39%



   Total Capital Ratio



18.68%

18.64%



 Tier 1 Regulatory Capital



$          68,756

$       63,381



 Total Regulatory Capital



$          72,975

$       67,794










(1) Includes federal funds sold, securities purchased under agreements to resell and interest-bearing deposits








Average Balances:









Three months ended


Year ended



December 31,


December 31, 



2013

2012


2013

2012








  Average Total Assets


$        637,139

$        602,933


$  625,802

$       601,300

  Average Loans 


349,830

335,010


344,110

331,564

  Average Earning Assets


591,362

556,804


581,299

553,724

  Average Deposits


508,292

473,857


497,521

471,458

  Average Other Borrowings


69,686

69,590


69,022

71,926

  Average Shareholders' Equity


53,339

53,954


53,837

52,447















Asset Quality:


 December 31, 

 September 30, 

June 30,

March 31,

December 31,



2013

2013

2013

2013

2012

Loan Risk Rating by Category (End of Period)






       Special Mention


$          10,708

$            9,822

$         8,512

$      9,097

$           7,681

       Substandard


10,609

10,779

13,614

13,870

17,612

       Doubtful


-

-

-

-

-

       Pass (includes held for sale)


326,280

326,992

324,752

314,991

316,476



$        347,597

$        347,593

$     346,878

$  337,958

$       341,769








  Nonperforming Assets:







   Non-accrual loans


$            5,406

$            5,052

$         5,978

$      5,388

$           4,715

   Other real estate owned


3,370

3,607

2,824

3,335

3,987

   Accruing loans past due 90 days or more

1

54

-

325

55

            Total nonperforming assets

$            8,777

$            8,713

$         8,802

$      9,048

$           8,757

Accruing trouble debt restructurings

$               576

$               584

$            593

$         907

$           1,509










Three months ended


Year ended



December 31,


December 31, 



2013

2012


2013

2012

Loans charged-off:


$               271

$               236


$      1,048

$              708

Overdrafts charged-off


10

10


42

34

Loan recoveries


(24)

(89)


(146)

(155)

Overdraft recoveries


(4)

(3)


(12)

(13)

  Net Charge-offs


$               253

$               154


$         932

$              574








Net charge-offs to average loans


0.07%

0.05%


0.27%

0.17%

 

FIRST COMMUNITY CORPORATION













INCOME STATEMENT DATA













(Dollars in thousands, except per share data)















Three months ended


Three months ended


Three months ended


Three months ended


Year ended



December 31,


September 30,


June 30,


March 31,


December 31,



2013

2012


2013

2012


2013

2012


2013

2012


2013

2012

















  Interest Income


$      5,656

$       5,468


$      5,474

$      5,650


$      5,370

$      5,840


$      5,283

$      6,044


$    21,783

$    23,002

  Interest Expense


879

1,183


904

1,321


947

1,389


1,004

1,535


3,734

5,428

  Net Interest Income


4,777

4,285


4,570

4,329


4,423

4,451


4,279

4,509


18,049

17,574

  Provision for Loan Losses


149

80


129

115


100

71


150

230


528

496

  Net Interest Income After Provision


4,628

4,205


4,441

4,214


4,323

4,380


4,129

4,279


17,521

17,078

  Non-interest Income:
















    Deposit service charges


392

403


387

395


367

375


361

389


1,507

1,562

    Mortgage banking income


799

1,249


770

1,393


1,183

877


1,015

723


3,767

4,242

    Investment advisory fees and non-deposit commissions


277

159


279

183


218

162


198

147


972

651

    Gain (loss) on sale of securities


(79)

88


4

(35)


133

(38)


15

11


73

26

    Gain (loss) on sale other assets


(8)

(81)


(23)

(22)


32

(36)


(2)

50


(1)

(89)

    Fair value gain (loss) adjustment


-

(1)


-

(20)


(2)

(4)


-

(33)


-

(58)

    Other-than-temporary-impairment write-down on securities


-

-


-

-


-

-


-

(200)


(2)

(200)

    Loss on early extinguishment of debt


-

(96)


-

-


(141)

-


-

(121)


(142)

(217)

    Other


491

514


524

508


505

519


496

497


2,017

2,038

  Total non-interest income


1,872

2,235


1,941

2,402


2,295

1,855


2,083

1,463


8,191

7,955

  Non-interest Expense:
















    Salaries and employee benefits


3,079

2,973


2,948

2,874


2,994

2,747


2,992

2,558


12,013

11,152

    Occupancy


361

326


343

352


334

335


346

345


1,384

1,358

    Equipment


299

291


310

307


314

283


283

287


1,206

1,168

    Marketing and public relations


230

111


106

73


112

108


93

186


541

478

    FDIC assessment


108

100


108

117


102

196


99

184


417

597

    Other real estate expense


113

451


189

173


115

267


112

119


508

1,010

    Amortization of intangibles


32

51


32

51


45

51


51

51


160

204

    Merger expenses


506

-


33

-


-

-


-



539


    Other


975

799


888

876


939

921


831

882


3,654

3,478

  Total non-interest expense


5,703

5,102


4,957

4,823


4,955

4,908


4,807

4,612


20,422

19,445

  Income before taxes


797

1,338


1,425

1,793


1,663

1,327


1,405

1,130


5,290

5,588

  Income tax expense 


(53)

317


379

573


460

399


367

331


1,153

1,620

  Net Income 


850

1,021


1,046

1,220


1,203

928


$      1,038

$         799


$      4,137

$      3,968

  Preferred stock dividends, including discount accretion


-

-



339


-

168


-

169


-

676

  Net income available to common shareholders


$         850

$       1,021


$      1,046

$         881


$      1,203

$         760


$      1,038

$         630


$      4,137

$      3,292

















  Per share data:
















     Net income, basic 


$        0.16

$         0.20


$        0.20

$        0.19


$        0.23

$        0.23


$        0.20

$        0.19


$        0.78

$        0.79

     Net income, diluted 


$        0.16

$         0.19


$        0.20

$        0.19


$        0.23

$        0.23


$        0.20

$        0.19


$        0.78

$        0.79

















  Average number of shares outstanding - basic


5,298,841

5,225,824


5,294,736

4,693,344


5,292,828

3,295,804


5,255,525

3,308,677


5,285,377

4,143,609

  Average number of shares outstanding - diluted


5,354,373

5,261,714


5,308,546

4,726,206


5,311,194

3,356,785


5,292,000

3,329,175


5,334,319

4,171,630

  Shares outstanding period end


5,302,674

5,227,300


5,296,288

5,224,282


5,293,116

3,346,365


5,290,452

3,310,572


5,302,674

5,227,300

















  Return on average assets


0.53%

0.67%


0.66%

0.57%


0.77%

0.51%


0.69%

0.43%


0.66%

0.55%

  Return on average common equity


6.32%

7.51%


7.93%

7.18%


8.75%

8.02%


7.72%

6.86%


7.68%

7.40%

  Return on average common tangible equity


6.39%

7.62%


8.02%

7.30%


8.88%

8.22%


7.82%

7.09%


7.78%

7.55%

  Net Interest Margin (non taxable equivalent)


3.20%

3.06%


3.10%

3.06%


3.03%

3.25%


3.09%

3.34%


3.10%

3.17%

  Net Interest Margin (taxable equivalent)


3.29%

3.12%


3.18%

3.12%


3.11%

3.30%


3.15%

3.36%


3.18%

3.22%

 

FIRST COMMUNITY CORPORATION

Yields on Average Earning Assets and Rates 

on Average Interest-Bearing Liabilities







































Three Months ended December 31, 2013


Three Months ended December 31, 2012



Average

Interest 

Yield/


Average

Interest 

Yield/



Balance

Earned/Paid

Rate


Balance

Earned/Paid

Rate

Assets









Earning assets









  Loans


$       349,830

$       4,379

4.97%


$      335,010

$         4,557

5.41%

  Securities:


228,988

1,260

2.18%


206,768

888

1.71%










  Other funds


12,544

17

0.54%


15,026

23

0.61%

        Total earning assets


591,362

5,656

3.79%


556,804

5,468

3.90%

Cash and due from banks


8,263




8,834



Premises and equipment


18,380




17,301



Intangible assets


587




756



Other assets


22,870




23,957



Allowance for loan losses


(4,323)




(4,719)



       Total assets


$       637,139




$      602,933












Liabilities









Interest-bearing liabilities









  Interest-bearing transaction accounts


102,087

26

0.10%


92,466

31

0.13%

  Money market accounts


80,094

44

0.22%


54,493

33

0.24%

  Savings deposits


51,638

15

0.12%


40,898

12

0.12%

  Time deposits


162,489

313

0.76%


188,837

573

1.21%

  Other borrowings


69,686

481

2.74%


69,590

534

3.05%

     Total interest-bearing liabilities


465,994

879

0.75%


446,284

1,183

1.05%

Demand deposits


111,984




97,163



Other liabilities


5,822




5,532



Shareholders' equity


53,339




53,954



   Total liabilities and shareholders' equity


$       637,139




$      602,933












Cost of funds including demand deposits




0.60%




0.87%

Net interest spread 




3.05%




2.84%

Net interest income/margin



$       4,777

3.20%



$         4,285

3.06%

Tax equivalent



$       4,911

3.29%



$         4,370

3.12%

 

FIRST COMMUNITY CORPORATION

Yields on Average Earning Assets and Rates 

on Average Interest-Bearing Liabilities







































Year ended December 31, 2013


Year ended December 31, 2012



Average

Interest 

Yield/


Average

Interest 

Yield/



Balance

Earned/Paid

Rate


Balance

Earned/Paid

Rate

Assets









Earning assets









  Loans


$    344,110

$      17,581

5.11%


$ 331,564

$      18,361

5.54%

  Securities:


223,540

4,136

1.85%


204,926

4,557

2.22%










  Other funds 


13,649

66

0.48%


17,234

84

0.49%

        Total earning assets


581,299

21,783

3.75%


553,724

23,002

4.15%

Cash and due from banks


8,546




8,643



Premises and equipment


17,509




17,388



Intangible assets


641




832



Other assets


22,290




25,556



Allowance for loan losses


(4,483)




(4,843)



       Total assets


$    625,802




$ 601,300












Liabilities









Interest-bearing liabilities









  Interest-bearing transaction accounts


100,808

111

0.11%


89,734

151

0.17%

  Money market accounts


74,514

171

0.23%


52,575

153

0.29%

  Savings deposits


47,296

53

0.11%


39,020

49

0.13%

  Time deposits


171,436

1,458

0.85%


198,392

2,769

1.40%

  Other borrowings


69,022

1,941

2.81%


71,926

2,306

3.21%

     Total interest-bearing liabilities


463,076

3,734

0.81%


451,647

5,428

1.20%

Demand deposits


103,467




91,737



Other liabilities


5,422




5,469



Shareholders' equity


53,837




52,447



   Total liabilities and shareholders' equity


$    625,802




$ 601,300












Cost of funds including demand deposits




0.66%




1.00%

Net interest spread 




2.94%




2.95%

Net interest income/margin



$      18,049

3.10%



$      17,574

3.17%

Tax Equivalent



$      18,512

3.18%



$      17,833

3.22%

 

SOURCE First Community Corporation