On July 17, 2024, First Community Corp (FCCO, Financial) released its 8-K filing announcing its financial results for the second quarter of 2024. First Community Corp is a bank holding company providing commercial banking services, focusing on small to medium-sized businesses, professionals, and individuals. The company operates through segments such as Commercial and Retail Banking, Mortgage Banking, Investment Advisory and Non-Deposit, and Corporate.
Quarterly Earnings Overview
First Community Corp reported net income of $3.265 million for Q2 2024, up from $2.597 million in Q1 2024 but slightly down from $3.327 million in Q2 2023. Diluted earnings per share (EPS) were $0.42, compared to $0.34 in the previous quarter and $0.43 in the same quarter last year. Year-to-date net income through June 30, 2024, was $5.862 million, down from $6.790 million during the first half of 2023. Diluted EPS for the first half of 2024 was $0.76, compared to $0.89 in the same period in 2023.
Dividend and Share Repurchase
The Board of Directors approved an increased cash dividend of $0.15 per share, payable on August 13, 2024, to shareholders of record as of July 30, 2024. Additionally, the Board approved a share repurchase plan of up to $7.1 million, representing approximately 5.3% of total shareholders’ equity as of March 31, 2024. No shares have been repurchased under this plan yet.
Financial Metrics and Ratios
First Community Corp's regulatory capital ratios remain strong, with the Leverage Ratio at 8.44%, Tier 1 Capital Ratio at 12.55%, and Total Capital Ratio at 13.62% as of June 30, 2024. The Tangible Common Equity to Tangible Assets (TCE) ratio improved to 6.47% from 6.32% in the previous quarter. Tangible Book Value (TBV) per share increased to $15.85 from $15.51 as of March 31, 2024.
Loan Portfolio and Asset Quality
The company's asset quality metrics were excellent, with a non-performing assets ratio of 0.04% and a total past dues ratio of 0.07%. Non-accrual loans were $173 thousand, or 0.01% of total loans. The provision expense for Q2 2024 was $454 thousand, primarily due to growth in the loan portfolio.
Balance Sheet and Deposits
Total loans increased by $31.9 million during Q2 2024, an annualized growth rate of 11.1%. Total deposits grew to $1.605 billion, up from $1.578 billion in the previous quarter. The cost of deposits increased to 1.98% from 1.90% in Q1 2024, while the cost of funds remained relatively flat at 2.17%.
Revenue and Net Interest Margin
Net interest income for Q2 2024 was $12.7 million, up from $12.1 million in Q1 2024. The net interest margin on a tax-equivalent basis was 2.93%, up 14 basis points from the previous quarter. Non-interest income increased to $3.642 million, driven by higher mortgage production and investment advisory fees.
Non-Interest Expense and Tax Rate
Non-interest expense for Q2 2024 was $11.843 million, a slight increase from the previous quarter. The effective income tax rate for Q2 2024 was 19.16%, down from 21.66% in Q2 2023, due to a non-recurring tax adjustment.
Company Overview
First Community Corp trades on The NASDAQ Capital Market under the symbol "FCCO" and is the holding company for First Community Bank. The bank offers a range of deposit and loan products, residential mortgage lending, and financial planning/investment advisory services. It serves customers in South Carolina and Georgia.
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Income | $3.265 million | $2.597 million | $3.327 million |
| Diluted EPS | $0.42 | $0.34 | $0.43 |
| Total Deposits | $1.605 billion | $1.578 billion | $1.420 billion |
| Net Interest Income | $12.7 million | $12.1 million | $12.1 million |
| Net Interest Margin | 2.93% | 2.79% | 2.77% |
"Our entire board is pleased that our performance enables the company to continue its cash dividend for the 90th consecutive quarter," commented First Community Corporation President and CEO Mike Crapps.
"We are extremely excited about the success in the growth of loans and deposits during the second quarter. This is reflective of the hard work of our team and the high quality of our customers and markets," said Ted Nissen, President and CEO of First Community Bank.
For more detailed information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from First Community Corp for further details.
