First Community Corporation Announces Fourth Quarter and Annual Earnings and Cash Dividend

LEXINGTON, S.C., Jan. 20, 2021 /PRNewswire/ --

Highlights

  • Net income of $3.436 million for the fourth quarter, up 27.4% year-over-year and 29.6% over the linked quarter, and $10.099 million for the year of 2020
  • Pre-tax pre-provision earnings of $4.640 million for the fourth quarter, up 35.5% year-over year and 7.6% over the linked quarter.
  • Diluted EPS of $0.46 per common share for the fourth quarter and $1.35 per common share for the year of 2020
  • Pure (non-CD) deposit growth, including customer cash management accounts, of $219.2 million during the year, a 24.9% growth rate
  • Total loan growth of $107.1 million or 14.5% during the year. Loan growth, excluding Paycheck Protection Program (PPP) loans and a related credit facility, was $59.7 million during the year, an 8.1% growth rate
  • Total loans declined slightly by $303 thousand during the fourth quarter. Loans, excluding PPP loans and a related credit facility, grew $12.1 million during the fourth quarter, a 6.1% annualized growth rate
  • Key credit quality metrics continue to be strong with 2020 net loan recoveries of $142 thousand, non-performing assets of 0.50%, and past due loans of 0.23% at year end
  • Mortgage revenue of $1.600 million for the fourth quarter and $5.557 million for the year of 2020
  • Investment advisory revenue of $743 thousand for the fourth quarter and $2.720 million for the year of 2020. Assets under management now exceed $501 million.
  • Cash dividend of $0.12 per common share, the 76th consecutive quarter of cash dividends paid to common shareholders

Today, First Community Corporation FCCO, the holding company for First Community Bank, reported net income for the fourth quarter and year end of 2020.  Net income for the fourth quarter of 2020 was $3.436 million and diluted earnings per share were $0.46 compared to $2.697 million and $0.36 in the fourth quarter of 2019 and $2.652 million and $0.35 in the third quarter of 2020, an increase in net income of 27.4% and 29.6%, respectively.  Pre-tax pre-provision earnings (PTPPE) in the fourth quarter of 2020 were $4.640 million compared to fourth quarter of 2019 PTPPE of $3.424 million and third quarter 2020 PTPPE of $4.312 million, an increase of 35.5% and 7.6% respectively. 

For the year ended December 31, 2020 net income was $10.099 million and diluted earnings per share were $1.35, this compares to $10.971 and $1.45 in 2019.  Year-to-date through December 31, 2020 PTPPE were $16.258 million compared to $13.968 million during the year of 2019, an increase of 16.4%.  First Community President and CEO Michael Crapps commented, "We are pleased with the performance across all three lines of business during 2020.  Income during the year was negatively impacted by higher than normal provision expense, which was increased as we prepared for the potential and unknown impact of the COVID-19 pandemic."

Cash Dividend and Capital

The Board of Directors has approved a cash dividend for the fourth quarter of 2020 of $0.12 per common share.  This dividend is payable on February 16, 2021 to shareholders of record of the company's common stock as of February 2, 2021.  Mr. Crapps commented, "The entire board is pleased that our performance enables the company to continue its cash dividend for the 76th consecutive quarter." 

During the fourth quarter of 2020, no share repurchases were made under the company's existing share repurchase plan that was approved during the third quarter of 2019.  The existing repurchase plan provides the company with some flexibility in managing capital going forward.

Each of the regulatory capital ratios for the bank exceed the well capitalized minimum levels currently required by regulatory statute.  At December 31, 2020, the bank's regulatory capital ratios (Leverage, Tier I Risk Based and Total Risk Based) were 8.84%, 12.83%, and 13.94%, respectively.  This compares to the same ratios as of December 31, 2019 of 9.97%, 13.47%, and 14.26%, respectively. As of December 31, 2020, the bank's Common Equity Tier One ratio was 12.83% compared to 13.47% at December 31, 2019.  Further, the company's Tangible Common Equity to Tangible Assets ratio was 8.74% as of December 31, 2020 compared to 9.02% as of December 31, 2019.

Asset Quality

The company's asset quality remains strong.  The non-performing assets ratio was 0.50% of total assets at December 31, 2020 compared to 0.32% at December 31, 2019.  Non-performing assets were $7.0 million at year-end 2020, an increase from $3.7 million at the end of 2019.  This increase was related to one credit relationship which was impacted by the COVID-19 pandemic.  While this is the appropriate recognition of the current status of this credit, there are encouraging signs of ultimate resolution of this matter and based on current appraisals, the loan is well collateralized.  The past due ratio for all loans was 0.23% at year-end 2020, an increase from 0.06% at year-end 2019.  During the fourth quarter the bank experienced net loan recoveries of $21 thousand, with overall net loan recoveries for the year of 2020 of $142 thousand.   The ratio of classified loans plus OREO now stands at 7.04% of total bank regulatory risk-based capital as of December 31, 2020. 

Mr. Crapps indicated, "As a way to serve our many local businesses and individuals during the past few challenging months, we proactively offered payment deferrals for up to 90 days to our loan customers."  The company reported that at its peak, there were payment deferments on loans totaling approximately $206.9 million (26.9% of the non-PPP loan portfolio).  Loans in which payments were being deferred decreased to $16.1 million (2.0% of the non-PPP loan portfolio) at December 31, 2020 and $9.0 million (1.1% of the non-PPP loan portfolio) at January 13, 2021.  This is primarily the result of payments being restarted at the conclusion of their payment deferral period. 

Even with strong credit quality metrics, due to the uncertainty of future credit losses related to the COVID-19 pandemic and its effect on local businesses, the bank recorded $276 thousand in provision expense in the fourth quarter compared to $0 in the fourth quarter of 2019.  Year-to-date through December 31, 2020, the bank has recorded $3.663 million in provision expense compared to $139 thousand during 2019.  During 2020, the ratio of the Allowance for Loan Loss to total loans has increased from 0.90% as of December 31, 2019 to 1.23% as of December 31, 2020.  Mr. Crapps commented, "Our credit metrics continue to indicate the current strong quality of our loan portfolio.  This combined with the significant reduction in loans with payments deferred is good news for our company.  At the same time, there is much unknown about the continued economic impact of the pandemic; therefore, we continue to prepare our balance sheet and our resources for an uncertain future."

Balance Sheet

Total loans declined slightly by $330 thousand during the fourth quarter due to payoffs and paydowns of PPP loans and a related credit facility.  Non-PPP related loan growth continued to show positive momentum with $12.1 million in growth during the fourth quarter, a 6.1% annualized growth rate.  For the year of 2020, total loans increase $107.1 million, a 14.5% growth rate.  Total loans, excluding PPP loans and a related credit facility, increased $59.7 million during the year, an 8.1% growth rate.  Non-PPP related loan production in 2020 was up 28.5% over 2019. 

As of December 31, 2020, the bank had $47.4 million in PPP loans and a related credit facility on the balance sheet.  Mr. Crapps noted, "As a community bank committed to the success of local businesses, we were pleased to be able to support our customers with access to the PPP funding.  We are now in the process of working with our customers through the SBA forgiveness process.  We anticipate this process will continue through the first half of 2021 at the same time we begin working on the next round of PPP origination."

Total deposits were $1.189 billion at December 31, 2020 compared to $1.174 billion at September 30, 2020.  Pure deposits, which are defined as total deposits less certificates of deposits, increased $22.0 million, to $1.059 billion from $1.037 billion at September 30, 2020, an 8.5% annualized growth rate.  The bank had no brokered deposits and no listing services deposits at December 31, 2020.  Securities sold under agreements to repurchase, which are related to customer cash management accounts or business sweep accounts, were $40.9 million at December 31, 2020 compared to $47.1 million at September 30, 2020.  Costs of deposits decreased on a linked quarter basis to 0.20% in the fourth quarter from 0.23% in the third quarter of 2020.  Cost of funds also decreased on a linked quarter basis to 0.24% in the fourth quarter from 0.27% in the third quarter of the year.  Mr. Crapps commented, "A strength of our bank has been and continues to be our low cost deposit base.  During 2020, we have continued to grow pure deposits while at the same time working to reduce our cost of deposits."   

Revenue

Net Interest Income/Net Interest Margin

Net interest income for the year of 2020 increased 8.7% to $40.0 million compared to $36.8 million for the year of 2019.  On a linked quarter basis net interest income increased 4.9% to $10.7 million from $10.2 million in the third quarter.  This increase in net interest income was due to an increase in earning assets of $48.3 million and a three basis point increase in net interest margin in the fourth quarter compared to the third quarter of 2020.  During the fourth quarter of 2020 both net interest income and net interest margin were impacted by an additional $141 thousand in accretion of net deferred fee income on PPP loans and a three basis points reduction in cost of funds compared to the linked quarter.  The net interest margin, on a taxable equivalent basis, was 3.31% for the fourth quarter of 2020 compared to 3.28% in the third quarter of the year. Fourth quarter net interest margin, excluding PPP loans, on a tax equivalent basis, was 3.28% compared to 3.29% in the third quarter.

Non-Interest Income

Total non-interest income was $3.604 million in the fourth quarter of 2020 compared $3.850 million in the third quarter of the year and $2.928 in the fourth quarter of 2019.  For 2020 non-interest income, adjusted for non-recurring items including securities gains and losses and non-recurring BOLI income, was $13.4 million, an increase of 15.2% from $11.6 million in 2019. 

Revenues in the mortgage line of business increased 30.9% year-over-year to $1.600 million in the fourth quarter of 2020 compared to $1.222 million in the fourth quarter of 2019.  On a linked quarter basis, revenue in the mortgage line of business increased $197 thousand, a 14.0% increase.  Revenues for the mortgage line of business were $5.557 million for the year of 2020 up 22.0% from mortgage revenue of $4.555 in 2019.  Mortgage loan production increased 36.3% year-over-year from $39.1 million in the fourth quarter of 2019 to $53.3 million in the fourth quarter of 2020.  Production in 2020 was $199.3 million, up 42.7% over 2019.  The gain-on-sale margin improved during the fourth quarter of 2020 to 3.0% from 2.47% in the third quarter of the year as capacity rebuilds began to mitigate the disruptions in the mortgage market which had negatively impacted the gain on sale margin earlier in the year causing certain loans to not be sold. 

Revenue in the investment advisory line of business increased 10.6% on a linked quarter basis from $672 thousand in the third quarter of 2020 to $743 thousand in the fourth quarter.  Year-over-year, revenue increased 27.0% from $585 thousand in the fourth quarter of 2019.  Notably, assets under management (AUM), ended 2020 at $501.0 million, an increase of 35.5% over AUM at December 31, 2019 of $369.7 million.  Mr. Crapps commented, "Our strategy of multiple revenue streams continues to serve us well as we focus our efforts to accelerate growth in these lines of business.  We are pleased with the activity and momentum in each of our business units." 

Non-Interest Expense

Non-interest expense was relatively flat on a linked quarter basis.  Salaries and benefits expense increased during the fourth quarter of 2020, as compared to the third quarter, by $359 thousand which included additional accruals in the amount of $245.4 thousand for incentive plans for performance at higher than planned levels.  This increase was offset by a planned decrease in marketing and public relations expenses of $242 thousand in addition to a decrease in occupancy expense of $85 thousand along with smaller decreases in several other expense categories. 

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, and Upstate, South Carolina markets as well as Augusta, Georgia.  For more information, visit www.firstcommunitysc.com.

FORWARD-LOOKING STATEMENTS

This news release and certain statements by our management may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans, goals, projections and expectations, and are thus prospective. Forward looking statements can be identified by words such as "anticipated', "expects", "intends", "believes", "may", "likely", "will" or other statements that indicate future periods.  Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.  Such risks, uncertainties and other factors, include, among others, the following: (1) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (2) the strength of the United States economy in general and the strength of the local economies in which we conduct operations may be different than expected including, but not limited to, due to the negative impacts and disruptions resulting from the outbreak of the novel coronavirus, or COVID-19, on the economies and communities we serve, which has had and may continue to have an adverse impact on our business, operations, performance, credit portfolio, share price, borrowers, and on the economy as a whole both domestically and globally; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for loan loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (4) changes in legislation, regulation, policies or administrative practices, whether by judicial, governmental, or legislative action, including, but not limited to, the Coronavirus Aid, Relief, and Economic Security Act, or the "CARES Act"; (5) adverse conditions in the stock market, the public debt markets and other capital markets (including changes in interest rate conditions) could have a negative impact on the company; (6) technology and cybersecurity risks, including potential business disruptions, reputational risks, and financial losses, associated with potential attacks on or failures by our computer systems and computer systems of our vendors and other third parties; and (7) risks, uncertainties and other factors disclosed in our most recent Annual Report on Form 10-K filed with the SEC, or in any of our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K filed with the SEC since the end of the fiscal year covered by our most recently filed Annual Report on Form 10-K, which are available at the SEC's Internet site (http://www.sec.gov).

Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. We can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

###



FIRST COMMUNITY CORPORATION











BALANCE SHEET DATA













(Dollars in thousands, except per share data)

















As of









December 31,

September 30,

December 31,









2020

2020

2019

















  Total Assets





$    1,395,382

$    1,381,804

$    1,170,279



  Other Short-term Investments1





46,062

106,231

32,741



  Investment Securities





361,919

295,525

288,792



  Loans Held for Sale





45,020

37,587

11,155



  Loans













     Paycheck Protection Program (PPP) Loans



42,242

49,799

-



     Non-PPP Loans





801,915

794,661

737,028



  Total Loans





844,157

844,460

737,028



  Allowance for Loan Losses





10,389

10,113

6,627



  Goodwill





14,637

14,637

14,637



  Other Intangibles





1,120

1,188

1,483



  Total Deposits





1,189,413

1,173,551

988,201



  Securities Sold Under Agreements to Repurchase



40,914

47,142

33,296



  Federal Home Loan Bank Advances





-

-

211



  Junior Subordinated Debt





14,964

14,964

14,964



  Shareholders' Equity





136,337

133,244

120,194

















  Book Value Per Common Share





$           18.18

$           17.78

$           16.16



  Tangible Book Value Per Common Share 





$           16.08

$           15.67

$           13.99



  Equity to Assets





9.77%

9.64%

10.27%



  Tangible Common Equity to Tangible Assets



8.74%

8.60%

9.02%



  Loan to Deposit Ratio (Includes Loans Held for Sale)



74.76%

75.16%

75.71%



  Loan to Deposit Ratio (Excludes Loans Held for Sale)



70.97%

71.96%

74.58%



  Allowance for Loan Losses/Loans





1.23%

1.20%

0.90%

















Regulatory Capital Ratios (Bank):













  Leverage Ratio





8.84%

8.95%

9.97%



  Tier 1 Capital Ratio





12.83%

12.97%

13.47%



  Total Capital Ratio





13.94%

14.08%

14.26%



  Common Equity Tier 1 Capital Ratio





12.83%

12.97%

13.47%



  Tier 1 Regulatory Capital





$       120,385

$       117,700

$       112,754



  Total Regulatory Capital





$       130,774

$       127,813

$       119,381



  Common Equity Tier 1 Capital





$       120,385

$       117,700

$       112,754

















1 Includes federal funds sold, securities sold under agreement to resell and interest-bearing deposits



















Average Balances:



Three months ended



Twelve months ended





December 31,



December 31,





2020

2019



2020

2019















  Average Total Assets



$    1,392,030

$    1,151,456



$    1,296,081

$  1,116,217

  Average Loans (Includes Loans Held for Sale)

892,771

748,132



835,091

735,343

  Average Earning Assets



1,296,891

1,052,289



1,198,887

1,018,510

  Average Deposits



1,181,772

967,534



1,087,448

934,941

  Average Other Borrowings



63,620

51,136



66,528

52,427

  Average Shareholders' Equity



133,257

119,586



128,863

116,980















Asset Quality:



 As of  





December 31,

September 30,

June 30,

March 31,

December 31,





2020

2020

2020

2020

2019

Loan Risk Rating by Category (End of Period)











  Special Mention



$           7,768

$           4,977

$           2,849

$           3,950

$         4,936

  Substandard



8,001

5,082

5,300

4,467

4,691

  Doubtful



-

-

-

-

-

  Pass



828,388

834,401

809,223

741,112

727,401





$       844,157

$       844,460

$       817,372

$       749,529

$     737,028

Nonperforming Assets













  Non-accrual Loans



$           4,561

$           1,655

$           1,806

$           1,739

$         2,329

  Other Real Estate Owned and Repossessed Assets

1,201

1,313

1,449

1,481

1,410

  Accruing Loans Past Due 90 Days or More



1,260

33

-

168

-

Total Nonperforming Assets



$           7,022

$           3,001

$           3,255

$           3,388

$         3,739

Accruing Trouble Debt Restructurings



$           1,552

$           1,568

$           1,613

$           1,635

$         1,669



















 Three months ended 



 Twelve months ended 





December 31,



December 31,





2020

2019



2020

2019

  Loans Charged-off



$                 1

$               13



$               25

$             44

  Overdrafts Charged-off



37

20



85

100

  Loan Recoveries



(22)

(92)



(167)

(337)

  Overdraft Recoveries



(16)

(8)



(42)

(32)

     Net Charge-offs (Recoveries)



$                -

$              (67)



$              (99)

$          (225)

Net Charge-offs / (Recoveries) to Average Loans2

0.00%

(0.04%)



(0.01%)

(0.03%)

2 Annualized













 



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



Twelve months ended



December 31,



September 30,



June 30,



March 31,



December 31,



2020

2019



2020

2019



2020

2019



2020

2019



2020

2019































  Interest income

$    11,426

$    10,786



$    10,976

$    10,864



$    10,666

$    10,606



$    10,710

$    10,374



$    43,778

$    42,630

  Interest expense

739

1,426



800

1,511



923

1,490



1,293

1,354



3,755

5,781

  Net interest income

10,687

9,360



10,176

9,353



9,743

9,116



9,417

9,020



40,023

36,849

  Provision for loan losses

276

-



1,062

25



1,250

9



1,075

105



3,663

139

  Net interest income after provision

10,411

9,360



9,114

9,328



8,493

9,107



8,342

8,915



36,360

36,710

  Non-interest income





























    Deposit service charges

270

437



242

421



210

380



399

411



1,121

1,649

    Mortgage banking income

1,600

1,222



1,403

1,251



1,572

1,238



982

844



5,557

4,555

    Investment advisory fees and non-deposit commissions

743

585



672

509



671

489



634

438



2,720

2,021

    Gain (loss) on sale of securities

-

1



99

-



-

164



-

(29)



99

136

    Gain (loss) on sale of other assets

-

-



141

-



-

(3)



6

-



147

(3)

    Write-down on premises held-for-sale

-

(282)



-

-



-

-



-

-



-

(282)

    Non-recurring BOLI income

-

-



311

-



-

-



-

-



311

-

    Other

991

965



982

932



934

918



907

845



3,814

3,660

  Total non-interest income

3,604

2,928



3,850

3,113



3,387

3,186



2,928

2,509



13,769

11,736

  Non-interest expense





























    Salaries and employee benefits

6,446

5,416



6,087

5,465



5,840

5,210



5,653

5,170



24,026

21,261

    Occupancy

651

691



736

703



679

647



643

655



2,709

2,696

    Equipment

303

353



318

365



298

389



318

386



1,237

1,493

    Marketing and public relations

100

350



342

159



247

430



354

175



1,043

1,114

    FDIC assessment 

137

(78)



137

(10)



88

71



42

74



404

57

    Other real estate expenses

47

3



79

31



40

18



35

29



201

81

    Amortization of intangibles

68

126



95

133



95

132



105

132



363

523

    Other

1,899

2,003



1,920

1,944



1,844

1,743



1,888

1,702



7,551

7,392

  Total non-interest expense

9,651

8,864



9,714

8,790



9,131

8,640



9,038

8,323



37,534

34,617

  Income before taxes

4,364

3,424



3,250

3,651



2,749

3,653



2,232

3,101



12,595

13,829

  Income tax expense

928

727



598

753



532

772



438

606



2,496

2,858

  Net income

$     3,436

$     2,697



$     2,652

$     2,898



$     2,217

$     2,881



$     1,794

$     2,495



$    10,099

$    10,971































  Per share data





























     Net income, basic 

$       0.46

$       0.36



$       0.36

$       0.39



$       0.30

$       0.38



$       0.24

$       0.33



$       1.36

$       1.46

     Net income, diluted 

$       0.46

$       0.36



$       0.35

$       0.39



$       0.30

$       0.37



$       0.24

$       0.32



$       1.35

$       1.45































  Average number of shares outstanding - basic

7,463,583

7,403,206



7,457,750

7,386,437



7,435,933

7,626,559



7,427,257

7,633,908



7,445,906

7,510,338

  Average number of shares outstanding - diluted

7,503,184

7,468,881



7,481,568

7,463,258



7,465,212

7,704,221



7,472,956

7,724,780



7,482,062

7,588,300

  Shares outstanding period end

7,500,338

7,440,026



7,492,908

7,408,879



7,486,151

7,511,164



7,462,247

7,664,967



7,500,338

7,440,026































  Return on average assets

0.98%

0.93%



0.78%

1.03%



0.70%

1.05%



0.61%

0.93%



0.78%

0.98%

  Return on average common equity

10.26%

8.95%



8.01%

9.81%



7.03%

9.86%



5.84%

8.89%



7.84%

9.38%

  Return on average common tangible equity

11.64%

10.35%



9.11%

11.39%



8.04%

11.46%



6.72%

10.41%



8.94%

10.91%

  Net interest margin (non taxable equivalent) 

3.28%

3.53%



3.24%

3.63%



3.35%

3.64%



3.52%

3.68%



3.34%

3.62%

  Net interest margin (taxable equivalent)

3.31%

3.56%



3.28%

3.66%



3.38%

3.67%



3.55%

3.73%



3.37%

3.65%

  Efficiency ratio1

67.05%

70.10%



71.53%

70.09%



69.00%

70.62%



72.79%

71.31%



69.99%

70.51%



1 Calculated by dividing non-interest expense by net interest income on a tax equivalent basis and non interest income, excluding gains (losses) on sales of securities and other assets, write-downs on premises held-for-sale, and non-recurring bank owned life insurance (BOLI) income.



 

FIRST COMMUNITY CORPORATION

Yields on Average Earning Assets and Rates 

on Average Interest-Bearing Liabilities



















Three months ended December 31, 2020



Three months ended December 31, 2019



Average

Interest 

Yield/



Average

Interest 

Yield/



Balance

Earned/Paid

Rate



Balance

Earned/Paid

Rate

Assets















Earning assets















  Loans















     PPP loans

$          47,872

$           496

4.12%



$                  -

$             -

NA

     Non-PPP loans

844,899

9,287

4.37%



748,132

8,954

4.75%

  Total loans

892,771

9,783

4.36%



748,132

8,954

4.75%

  Securities

322,245

1,603

1.98%



273,108

1,711

2.49%

  Other short-term investments

81,875

40

0.19%



31,049

121

1.55%

Total earning assets

1,296,891

11,426

3.50%



1,052,289

10,786

4.07%

Cash and due from banks

16,775







15,488





Premises and equipment

34,519







36,075





Goodwill and other intangibles

15,789







16,180





Other assets

38,246







38,055





Allowance for loan losses

(10,190)







(6,631)





Total Assets

$     1,392,030







$     1,151,456





















Liabilities















Interest-bearing liabilities















  Interest-bearing transaction accounts

$        279,264

$             65

0.09%



$        221,954

$           148

0.26%

  Money market accounts

237,289

146

0.24%



189,505

408

0.85%

  Savings deposits

122,665

19

0.06%



101,808

34

0.13%

  Time deposits

165,722

376

0.90%



172,763

568

1.30%

  Other borrowings

63,620

133

0.83%



51,136

268

2.08%

Total interest-bearing liabilities

868,560

739

0.34%



737,166

1,426

0.77%

Demand deposits

376,832







281,504





Other liabilities

13,381







13,200





Shareholders' equity

133,257







119,586





Total liabilities and shareholders' equity

$     1,392,030







$     1,151,456





















Cost of deposits, including demand deposits





0.20%







0.47%

Cost of funds, including demand deposits





0.24%







0.56%

Net interest spread 





3.17%







3.30%

Net interest income/margin - excluding PPP loans



$      10,191

3.25%





$        9,360

3.53%

Net interest income/margin - including PPP loans



$      10,687

3.28%





$        9,360

3.53%

Net interest income/margin (tax equivalent) - excl. PPP loans

$      10,294

3.28%





$        9,436

3.56%

Net interest income/margin (tax equivalent) - incl. PPP loans

$      10,790

3.31%





$        9,436

3.56%

 

FIRST COMMUNITY CORPORATION

Yields on Average Earning Assets and Rates 

on Average Interest-Bearing Liabilities



















Twelve months ended December 31, 2020



Twelve months ended December 31, 2019



Average

Interest 

Yield/



Average

Interest 

Yield/



Balance

Earned/Paid

Rate



Balance

Earned/Paid

Rate

Assets















Earning assets















  Loans















     PPP loans

$          32,312

$        1,073

3.32%



$                  -

$             -

NA

     Non-PPP loans

802,779

35,964

4.48%



735,343

35,447

4.82%

  Total loans

835,091

37,037

4.44%



735,343

35,447

4.82%

  Securities

300,893

6,465

2.15%



257,587

6,636

2.58%

  Other short-term investments

62,903

276

0.44%



25,580

547

2.14%

Total earning assets

1,198,887

43,778

3.65%



1,018,510

42,630

4.19%

Cash and due from banks

15,552







14,362





Premises and equipment

34,769







35,893





Goodwill and other intangibles

15,922







16,376





Other assets

39,541







37,513





Allowance for loan losses

(8,590)







(6,437)





Total assets

$     1,296,081







$     1,116,217





















Liabilities















Interest-bearing liabilities















  Interest-bearing transaction accounts

$        246,385

284

0.12%



$        208,750

591

0.28%

  Money market accounts

217,018

820

0.38%



181,695

1,690

0.93%

  Savings deposits

113,255

84

0.07%



104,236

138

0.13%

  Time deposits

166,791

1,833

1.10%



176,243

2,139

1.21%

  Other borrowings

66,528

734

1.10%



52,427

1,223

2.33%

Total interest-bearing liabilities

809,977

3,755

0.46%



723,351

5,781

0.80%

Demand deposits

343,999







264,017





Other liabilities

13,242







11,869





Shareholders' equity

128,863







116,980





Total liabilities and shareholders' equity

$     1,296,081







$     1,116,217





















Cost of deposits, including demand deposits





0.28%







0.49%

Cost of funds, including demand deposits





0.33%







0.59%

Net interest spread 





3.19%







3.39%

Net interest income margin - excluding PPP loans



$      38,950

3.34%





$      36,849

3.62%

Net interest income/margin - including PPP loans



40,023

3.34%





36,849

3.62%

Net interest income/margin (tax equivalent) - excl. PPP loans

$      39,340

3.37%





$      37,208

3.65%

Net interest income/margin (tax equivalent) - incl. PPP loans

$      40,413

3.37%





$      37,208

3.65%

The tables below provide a reconciliation of non GAAP measures to GAAP for the periods indicated:





























December 31,





September 30,





December 31,



Tangible book value per common share





2020





2020





2019



Tangible common equity per common share (non–GAAP)



$

16.08



$

15.67



$

13.99



Effect to adjust for intangible assets





2.10





2.11





2.17



Book value per common share (GAAP)



$

18.18



$

17.78



$

16.16



Tangible common shareholders' equity to tangible 

   assets





















Tangible common equity to tangible assets (non–GAAP)





8.74

%



8.60

%



9.02

%

Effect to adjust for intangible assets





1.03

%



1.04

%



1.25

%

Common equity to assets (GAAP)





9.77

%



9.64

%



10.27

%

 

Return on average tangible

common equity

Three months ended

December 31,

Three months ended

September 30,

Three months ended

June 30,



Three months ended

March 31,



Twelve months ended

December 31,



2020

2019

2020



2019



2020

2019



2020



2019



2020



2019



Return on average common

tangible equity (non-GAAP)

11.64

%

10.35

%

 

9.11

 

%

11.39

%

8.04

%

11.46

%

6.72

%

10.41

%

8.94

%

10.91

%

Effect to adjust for intangible

assets

(1.38)

%

(1.40)

%

 

(1.10)

%

 

(1.58)

%

(1.01)

%

(1.60)

%

(0.88)

%

(1.52)

%

(1.10)

%

(1.53)

%

Return on average common

equity (GAAP)

10.26

%

8.95

%

8.01

 

%

 

9.81

%

7.03

%

9.86

%

5.84

%

8.89

%

7.84

%

9.38

%

 



Three months ended

Twelve months ended



December

31,



September

30,

December

30,

December

31,

Pre-tax, pre-provision earnings



2020





2020





2019



2020



2019

Pre-tax, pre-provision earnings (non–GAAP)

$

4,640



$

4,312



$

3,424

$

16,258

$

13,968

Effect to adjust for pre-tax, pre-provision earnings



(1,204)





(1,660)





(727)



(6,159)



(2,997)

Net Income (GAAP)

$

3,436



$

2,652



$

2,697

$

10,099

$

10,971

 





 Three months ended



Twelve months ended





December 31,



December 31,

Net interest margin excluding PPP Loans



2020



2019



2020



2019

Net interest margin excluding PPP loans (non-GAAP)



3.25%



3.53%



3.34%



3.62%

Effect to adjust for PPP loans



0.03



N/A



0.00



N/A

Net interest margin (GAAP)



3.28%



3.53%



3.34%



3.62%

 





Three months ended



Twelve months ended





December 31,



       December 31,

Net interest margin on a tax-equivalent basis excluding

   PPP Loans



2020



2019



2020



2019

Net interest margin on a tax-equivalent basis excluding

   PPP loans (non-GAAP)



3.28%



3.56%



3.37%



3.65%

Effect to adjust for PPP loans



0.03



N/A



0.00



N/A

Net interest margin on a tax equivalent basis (GAAP)



3.31%



3.56%



3.37%



3.65%

 

































 

December 31,





December 31,





Growth



Annualized Growth



Loans and loan growth





2020





2019





Dollars



Rate



Non-PPP Loans and Related Credit Facility (non-GAAP)



$

796,727





737,028





59,699



8.1

%

PPP Related Credit Facility





5,188





0





5,188



N/A



Non-PPP Loans (non–GAAP)



$

801,915



$

737,028



$

64,887



8.8

%

PPP Loans





42,242





0





42,242



N/A



Total Loans (GAAP)



$

844,157



$

737,028



$

107,129



14.5

%

 































 

December 31,





September 30,





Growth



Annualized Growth



Loans and loan growth





2020





2020





Dollars



Rate



Non-PPP Loans and Related Credit Facility (non-GAAP)



$

796,727





784,661





12,066



6.1

%

PPP Related Credit Facility





5,188





10,000





(4,812)



N/A



Non-PPP Loans (non–GAAP)



$

801,915



$

794,661



$

7,254



3.6

%

PPP Loans





42,242





49,799





(7,557)



(60.4)

%

Total Loans (GAAP)



$

844,157



$

844,460



$

(303)



(0.1)

%

Certain financial information presented above is determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). These non-GAAP financial measures include "Tangible book value per common share," "Tangible common shareholders' equity to tangible assets," "Return on average tangible common equity," "Pre-tax, pre-provision earnings," "Net interest margin excluding PPP Loans," "Net interest margin on a tax-equivalent basis excluding PPP Loans," and "Non-PPP Loans," "Tangible book value per common share" is defined as total equity reduced by recorded intangible assets divided by total common shares outstanding. "Tangible common shareholders' equity to tangible assets" is defined as total common equity reduced by recorded intangible assets divided by total assets reduced by recorded intangible assets. "Return on average tangible common equity" is defined as net income on an annualized basis divided by average total equity reduced by average recorded intangible assets.  "Pre-tax, pre-provision earnings" is defined as net interest income plus non-interest income, reduced by non-interest expense. "Net interest margin excluding PPP Loans" is defined as annualized net interest income less annualized interest income on PPP Loans divided by average earning assets less the average balance of PPP Loans.  "Net interest margin on a tax-equivalent basis excluding PPP Loans" is defined as annualized net interest income on a tax-equivalent basis less annualized interest income on PPP Loans divided by average earning assets less the average balance of PPP Loans.  "Non-PPP Loans and Related Credit Facility Growth - Dollars" is calculated by taking the difference between two time periods compared for Total Loans less PPP Loans and PPP Related Credit Facility.  "Non-PPP Loans and Related Credit Facility – Annualized Growth Rate" is calculated by (i) dividing "Non-PPP Loans and Related Credit Facility 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 Facility 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.

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/first-community-corporation-announces-fourth-quarter-and-annual-earnings-and-cash-dividend-301211594.html

SOURCE First Community Corporation

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