First Community Financial Corporation Reports 1st Quarter 2001 Earnings

Apr 23, 2001, 01:00 ET from First Community Financial Corporation

    BURLINGTON, N.C., April 23 /PRNewswire Interactive News Release/ --
     First Community Financial Corporation (Nasdaq: FCFN) reported today
 consolidated net income for the first quarter 2001 of $191,000, or $.13 per
 share, compared to $529,000, or $.30 per share in earnings for the same period
 in 2000 on a fully diluted basis.
     During the first quarter, net interest income before the loan loss
 provision decreased $230,000 or 11.4% compared to March 31, 2000.  Interest
 and fees on loans increased $362,000 or 11.7% compared to the first quarter of
 2000 which was offset by a $727,000 decrease in securities income resulting
 from the absence of a leveraged bond transaction that was removed during the
 forth quarter of 2000.  Interest expense decreased by 6.1% or $135,000 for the
 period ended March 31, 2001, compared to the three months ended March 31,
 2000. Interest expense on deposits increased by $373,000, which was offset by
 a $508,00 decrease in borrowing expense from the Federal Home Loan Bank.  The
 provision for loan losses increased to $105,000 from $95,000 in the first
 quarter of 2000.  The increase in the provision reflects a 28.8% increase in
 non-performing assets over March 31, 2000, and the company's growing
 commercial loan portfolio.  Non-interest income, net of securities and other
 asset sales increased 2.6%. Non-interest expense increased $178,000 or 13.4%
 for the quarter, due primarily to increases in benefits, lease expense,
 equipment expense and data processing conversion costs.
     At March 31, 2001, year-to-date net charge-offs were 0.02% of average
 loans outstanding, or $35,000.  The allowance for loan losses was 1.43% of
 total loans at the end of the first quarter, compared with 1.41% of total
 loans at the end of the fourth quarter 2000.  Non-performing assets at
 March 31, 2001, were $1.9 million, compared with $2.4 million at
 December 31, 2000, and $1.5 million at March 31, 2000.
     Chairman, CEO and President W. R. Gilliam said,  "The slow down in the
 economy and the rapid decline in interest rates hindered our net interest
 income.  Although earnings were disappointing for the quarter, we continue to
 feel optimistic about First Community's strategic plan of becoming a high
 performance bank.  We believe shareholders will be rewarded as we execute our
 strategy."
     At March 31, 2001, First Community had total assets of $208 million, a
 decrease of $25 million or 10.7% from the prior year.  Net loans held for
 investment increased $3.1 million or 1.9% to $163.9 million, at March 31, 2001
 compared to March 31, 2000.  Securities decreased by $31.1 million or 56.5%,
 to $23.9 million, reflecting the sale of a $25 million leveraged securities
 transaction.  Deposits increased $4.3 million to $154.8 million, a 2.9%
 increase compared to March 31, 2000. Total equity decreased to $43.8 million
 at March 31, 2001 from $46.9 million at March 31, 2000, resulting in a capital
 to asset ratio of 21%. The decrease in capital was the result of repurchasing
 approximately 15 % of the outstanding shares of common stock during 2000.
 Book value was $27.21 at March 31, 2001.
     At March 31, 2001, FCFN operated four full service-banking offices in
 Alamance County, North Carolina.
 
 
 
       First Community Financaial Corporation
 
 
       Selected Consolidated Financial       March 31,  December 31,  March 31,
        Information                             2001        2000       2000
 
       Profitability:
       Return on average assets
        (annualized for March 2001 and
         March 2000)                            0.37%      0.54%       0.90%
       Return on average equity
        (annualized for March 2001 and
         March 2000)                            1.75%      2.75%       4.47%
       Interest rate spread (annualized
         for March 2000 and March 1999          2.64%      2.50%       2.68%
       Net interest margin (annualized for
        March 2001 and March 2000)              3.68%      3.49%       3.60%
       Efficiency Ratio                        78.29%     68.69%      60.59%
 
       Asset Quality:
       Non-performing assets to total
        assets                                  0.95%      1.16%       0.66%
       Allowance for loan losses to
         total loans                            1.43%      1.39%       1.19%
       Ratio of allowance to total
        nonperforming
         assets at end of period              122.68%     99.03%     127.01%
       Ratio of net charge-offs to average
        loans outstanding                       0.02%      0.12%      -0.01%
       Average equity to average assets        21.29%     19.56%      20.20%
 
 
 
     First Community Financial Corporation
     Condensed Consolidated Balance Sheets
     (dollars in thousands)                   March 31,  December 31, March 31,
                                                2001        2000        2000
     Assets
     Cash and cash equivalents                 $4,799      $5,379      $6,106
 
     Investment securities:
       Available for sale                       9,490      11,924      21,201
     Mortgaged-backed securities
       Available for sale                      14,439       8,728      33,849
 
     FHLB stock, at cost which
      approximates market                       1,925       1,925       1,925
 
     Loans receivable held for sale             3,135           0         378
 
     Loans receivable held for investment,
      net                                     163,935     166,180     160,848
 
     Premises and equipment                     4,317       4,355       2,445
     Other assets                               6,243       6,214       6,466
 
     Total assets                            $208,283    $204,705    $233,218
 
     Liabilities and Shareholders' Equity
     Deposits:
         Noninterest-bearing demand            $2,402      $2,482      $2,370
         Interest-bearing demand               13,511      13,825      15,030
         Savings                               14,547      14,952      15,115
         Large denomination certificates
          of deposit                           26,801      23,509      23,933
         Other certificates of deposit         97,563     102,554      94,094
     Total deposits                           154,824     157,322     150,542
 
     Borrowed money                             5,000           0      31,500
     Other liabilities                          4,704       3,945       4,233
     Total liabilities                        164,528     161,267     186,275
 
     Shareholders' Equity:
         Preferred stock,
             Authorized 5,000,000 shares;
              no shares issued and
              outstanding
         Common stock, no par value:
            20,000,000 shares authorized;
             1,608,083 shares issued and
             outstanding                       22,435      22,428      26,692
             at March 31, 2001 and
              December 31, 2000 and
              1,840,798 shares
              outstanding at March 31, 2000
         Unearned ESOP shares, 132,682
          shares at March 31, 2001; 135,187    (1,990)     (2,028)     (2,141)
            shares at December 31, 2000
             and 142,702 shares at March 31, 2000
         Deferred stock award - MRP              (812)       (851)
         Retained earnings, substantially
          restricted                           24,172      24,142      23,724
         Accumulated other comprehensive
          income (loss)                           (50)       (253)     (1,332)
     Total shareholders' equity                43,755      43,438      46,943
 
     Total liabilities and shareholders'
      equity                                 $208,283    $204,705    $233,218
 
     Book value based on 1,608,083 shares
      outstanding at March 31, 2001 and        $27.21      $27.01      $25.50
      December 31, 2000; 1,840,798 shares
      outstanding at March 31,2000
 
 
 
     First Community Financial Corporation
     Condensed Consolidated Statements of Income
     (dollars in thousands)
 
                                                        Three Months Ended
                                                              March 31,
                                                      2001               2000
     Interest income:
        Interest and fees on loans                   $3,460             $3,098
        Interest and dividends on
         investments                                    388              1,115
     Total interest income                            3,848              4,213
 
     Interest expense:
        Interest on deposits                          2,054              1,681
        Interest on borrowed money                       13                521
     Total interest expense                           2,067              2,202
     Net interest income before provision
      for loan losses                                 1,781              2,011
     Provision for loan losses                          105                 95
     Net interest income                              1,676              1,916
 
     Other income:
     Total other operating income                       145                186
 
     General and administrative expenses:
         Compensation and fringe benefits               879                811
         Occupancy                                       84                 56
         Furniture and fixtures                         107                 92
         Advertising                                     12                 43
         Data processing                                 94                 44
         Other                                          334                285
     Total general and administrative
      expenses                                        1,510              1,331
 
     Income before income taxes                         311                771
 
     Income tax expense                                 120                242
 
     Net income                                        $191               $529
 
 
 
       Earnings per share, basic                      $0.13              $0.30
       Earnings per shared, diluted                   $0.13              $0.30
       Weighted average shares
        outstanding, basic                        1,425,851          1,736,454
       Weighted average shares
        outstanding, diluted                      1,437,783          1,736,454
 
 
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SOURCE First Community Financial Corporation
    BURLINGTON, N.C., April 23 /PRNewswire Interactive News Release/ --
     First Community Financial Corporation (Nasdaq: FCFN) reported today
 consolidated net income for the first quarter 2001 of $191,000, or $.13 per
 share, compared to $529,000, or $.30 per share in earnings for the same period
 in 2000 on a fully diluted basis.
     During the first quarter, net interest income before the loan loss
 provision decreased $230,000 or 11.4% compared to March 31, 2000.  Interest
 and fees on loans increased $362,000 or 11.7% compared to the first quarter of
 2000 which was offset by a $727,000 decrease in securities income resulting
 from the absence of a leveraged bond transaction that was removed during the
 forth quarter of 2000.  Interest expense decreased by 6.1% or $135,000 for the
 period ended March 31, 2001, compared to the three months ended March 31,
 2000. Interest expense on deposits increased by $373,000, which was offset by
 a $508,00 decrease in borrowing expense from the Federal Home Loan Bank.  The
 provision for loan losses increased to $105,000 from $95,000 in the first
 quarter of 2000.  The increase in the provision reflects a 28.8% increase in
 non-performing assets over March 31, 2000, and the company's growing
 commercial loan portfolio.  Non-interest income, net of securities and other
 asset sales increased 2.6%. Non-interest expense increased $178,000 or 13.4%
 for the quarter, due primarily to increases in benefits, lease expense,
 equipment expense and data processing conversion costs.
     At March 31, 2001, year-to-date net charge-offs were 0.02% of average
 loans outstanding, or $35,000.  The allowance for loan losses was 1.43% of
 total loans at the end of the first quarter, compared with 1.41% of total
 loans at the end of the fourth quarter 2000.  Non-performing assets at
 March 31, 2001, were $1.9 million, compared with $2.4 million at
 December 31, 2000, and $1.5 million at March 31, 2000.
     Chairman, CEO and President W. R. Gilliam said,  "The slow down in the
 economy and the rapid decline in interest rates hindered our net interest
 income.  Although earnings were disappointing for the quarter, we continue to
 feel optimistic about First Community's strategic plan of becoming a high
 performance bank.  We believe shareholders will be rewarded as we execute our
 strategy."
     At March 31, 2001, First Community had total assets of $208 million, a
 decrease of $25 million or 10.7% from the prior year.  Net loans held for
 investment increased $3.1 million or 1.9% to $163.9 million, at March 31, 2001
 compared to March 31, 2000.  Securities decreased by $31.1 million or 56.5%,
 to $23.9 million, reflecting the sale of a $25 million leveraged securities
 transaction.  Deposits increased $4.3 million to $154.8 million, a 2.9%
 increase compared to March 31, 2000. Total equity decreased to $43.8 million
 at March 31, 2001 from $46.9 million at March 31, 2000, resulting in a capital
 to asset ratio of 21%. The decrease in capital was the result of repurchasing
 approximately 15 % of the outstanding shares of common stock during 2000.
 Book value was $27.21 at March 31, 2001.
     At March 31, 2001, FCFN operated four full service-banking offices in
 Alamance County, North Carolina.
 
 
 
       First Community Financaial Corporation
 
 
       Selected Consolidated Financial       March 31,  December 31,  March 31,
        Information                             2001        2000       2000
 
       Profitability:
       Return on average assets
        (annualized for March 2001 and
         March 2000)                            0.37%      0.54%       0.90%
       Return on average equity
        (annualized for March 2001 and
         March 2000)                            1.75%      2.75%       4.47%
       Interest rate spread (annualized
         for March 2000 and March 1999          2.64%      2.50%       2.68%
       Net interest margin (annualized for
        March 2001 and March 2000)              3.68%      3.49%       3.60%
       Efficiency Ratio                        78.29%     68.69%      60.59%
 
       Asset Quality:
       Non-performing assets to total
        assets                                  0.95%      1.16%       0.66%
       Allowance for loan losses to
         total loans                            1.43%      1.39%       1.19%
       Ratio of allowance to total
        nonperforming
         assets at end of period              122.68%     99.03%     127.01%
       Ratio of net charge-offs to average
        loans outstanding                       0.02%      0.12%      -0.01%
       Average equity to average assets        21.29%     19.56%      20.20%
 
 
 
     First Community Financial Corporation
     Condensed Consolidated Balance Sheets
     (dollars in thousands)                   March 31,  December 31, March 31,
                                                2001        2000        2000
     Assets
     Cash and cash equivalents                 $4,799      $5,379      $6,106
 
     Investment securities:
       Available for sale                       9,490      11,924      21,201
     Mortgaged-backed securities
       Available for sale                      14,439       8,728      33,849
 
     FHLB stock, at cost which
      approximates market                       1,925       1,925       1,925
 
     Loans receivable held for sale             3,135           0         378
 
     Loans receivable held for investment,
      net                                     163,935     166,180     160,848
 
     Premises and equipment                     4,317       4,355       2,445
     Other assets                               6,243       6,214       6,466
 
     Total assets                            $208,283    $204,705    $233,218
 
     Liabilities and Shareholders' Equity
     Deposits:
         Noninterest-bearing demand            $2,402      $2,482      $2,370
         Interest-bearing demand               13,511      13,825      15,030
         Savings                               14,547      14,952      15,115
         Large denomination certificates
          of deposit                           26,801      23,509      23,933
         Other certificates of deposit         97,563     102,554      94,094
     Total deposits                           154,824     157,322     150,542
 
     Borrowed money                             5,000           0      31,500
     Other liabilities                          4,704       3,945       4,233
     Total liabilities                        164,528     161,267     186,275
 
     Shareholders' Equity:
         Preferred stock,
             Authorized 5,000,000 shares;
              no shares issued and
              outstanding
         Common stock, no par value:
            20,000,000 shares authorized;
             1,608,083 shares issued and
             outstanding                       22,435      22,428      26,692
             at March 31, 2001 and
              December 31, 2000 and
              1,840,798 shares
              outstanding at March 31, 2000
         Unearned ESOP shares, 132,682
          shares at March 31, 2001; 135,187    (1,990)     (2,028)     (2,141)
            shares at December 31, 2000
             and 142,702 shares at March 31, 2000
         Deferred stock award - MRP              (812)       (851)
         Retained earnings, substantially
          restricted                           24,172      24,142      23,724
         Accumulated other comprehensive
          income (loss)                           (50)       (253)     (1,332)
     Total shareholders' equity                43,755      43,438      46,943
 
     Total liabilities and shareholders'
      equity                                 $208,283    $204,705    $233,218
 
     Book value based on 1,608,083 shares
      outstanding at March 31, 2001 and        $27.21      $27.01      $25.50
      December 31, 2000; 1,840,798 shares
      outstanding at March 31,2000
 
 
 
     First Community Financial Corporation
     Condensed Consolidated Statements of Income
     (dollars in thousands)
 
                                                        Three Months Ended
                                                              March 31,
                                                      2001               2000
     Interest income:
        Interest and fees on loans                   $3,460             $3,098
        Interest and dividends on
         investments                                    388              1,115
     Total interest income                            3,848              4,213
 
     Interest expense:
        Interest on deposits                          2,054              1,681
        Interest on borrowed money                       13                521
     Total interest expense                           2,067              2,202
     Net interest income before provision
      for loan losses                                 1,781              2,011
     Provision for loan losses                          105                 95
     Net interest income                              1,676              1,916
 
     Other income:
     Total other operating income                       145                186
 
     General and administrative expenses:
         Compensation and fringe benefits               879                811
         Occupancy                                       84                 56
         Furniture and fixtures                         107                 92
         Advertising                                     12                 43
         Data processing                                 94                 44
         Other                                          334                285
     Total general and administrative
      expenses                                        1,510              1,331
 
     Income before income taxes                         311                771
 
     Income tax expense                                 120                242
 
     Net income                                        $191               $529
 
 
 
       Earnings per share, basic                      $0.13              $0.30
       Earnings per shared, diluted                   $0.13              $0.30
       Weighted average shares
        outstanding, basic                        1,425,851          1,736,454
       Weighted average shares
        outstanding, diluted                      1,437,783          1,736,454
 
 
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 SOURCE First Community Financial Corporation