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Noteworthy in the fourth quarter were several items that contributed
significantly to the loss. The company experienced an OTTI charge in the
amount of
Additionally, the provision for loan losses in the quarter was
Another significant factor in the quarter is continued compression of the net-interest margin (NIM). The interest margin was 3.05% during the quarter which is twelve basis points less than the prior quarter and twenty three basis points less than the fourth quarter of 2007. This contraction is driven by the rapid decline in interest rates quickly affecting asset yields while market rates on deposits have remained disproportionately high. Additionally, the net-interest margin was also affected by the addition of loans on non- accrual status. The related adjustments due to this factor impacted the net- interest margin for the quarter by approximately five basis points.
Non-interest expense was
As previously announced, on
In addition to releasing year-end and fourth quarter results, the company
also announced that the board of directors had approved a cash dividend for
the fourth quarter of 2008. The company again declared a
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
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 and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.
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.
FIRST COMMUNITY CORPORATION BALANCE SHEET DATA (Dollars in thousand, except per share data) At December 31, 2008 2007 Total Assets $650,616 $565,613 Investment Securities 238,449 175,258 Loans 332,964 310,028 Allowance for Loan Losses 4,581 3,530 Total Deposits 423,798 405,854 Other Borrowings 152,454 89,630 Shareholders' Equity 68,406 63,996 Book Value Per Common Share $17.83 $19.93 Tangible Book Value Per Common Share $8.57 $10.67 Equity to Assets 10.51% 11.31% Loan to Deposit Ratio 78.56% 76.39% Allowance for Loan Losses/Loans 1.38% 1.14% Average Balances: Three months ended Year ended December 31, December 31, 2008 2007 2008 2007 Average Total Assets $641,696 $572,472 $619,984 $553,614 Average Loans 327,559 307,414 318,954 296,991 Average Earning Assets 563,336 496,394 543,678 476,079 Average Deposits 427,688 405,633 422,736 404,361 Average Other Borrowings 146,531 96,679 129,225 80,656 Average Shareholders' Equity 62,428 64,536 62,364 63,584 Asset Quality Nonperforming Assets: Non-accrual loans $1,757 $600 $1,757 $600 Other real estate owned 748 133 748 133 Accruing loans past due 90 days or more 59 501 59 501 Total nonperforming assets $2,564 $1,234 $2,564 $1,234 Loans charged-off $491 $231 $1,140 $483 Overdrafts charged-off 41 30 110 140 Loan recoveries (14) (124) (114) (382) Overdraft recoveries (28) (9) (58) (64) Net Charge-offs $490 $128 $1,078 $177 Net Charge-offs to Average Loans 0.15% 0.04% 0.34% 0.06% FIRST COMMUNITY CORPORATION INCOME STATEMENT DATA (Dollars in thousands, except per share data) Three months ended Year ended December 31, December 31, 2008 2007 2008 2007 Interest Income $8,242 $8,120 $33,007 $30,956 Interest Expense 3,955 4,115 15,809 15,666 Net Interest Income 4,287 4,005 17,198 15,290 Provision for Loan Losses 1,407 132 2,129 492 Net Interest Income After Provision 2,880 3,873 15,069 14,798 Non-interest Income: Deposit service charges 612 750 2,682 2,722 Mortgage origination fees 119 149 579 407 Commissions on sale non deposit products 91 138 334 356 Securities gains (loss) - (24) (28) 49 Other-than-temporary- impairment writedowns on securities (169) - (14,494) - Fair value adjustment gain (loss) (788) 122 (623) 168 Other 367 276 1,466 1,315 Total non-interest income 232 1,411 (10,084) 5,017 Non-interest Expense: Salaries and employee benefits 2,070 1,853 7,964 7,301 Occupancy 296 248 1,155 1,160 Equipment 333 321 1,289 1,270 Marketing and public relations 167 83 563 459 Amortization of intangibles 123 167 507 670 Other 1,250 841 4,061 3,265 Total non-interest expense 4,239 3,513 15,539 14,125 Income (loss) before taxes (1,127) 1,771 (10,554) 5,690 Income tax expense (benefit) (639) 573 (3,761) 1,725 Net income (loss) $(488) $1,198 $(6,793) $3,965 Preferred stock dividends 71 - 71 Net income (loss) available to common shareholders $(559) $1,198 $(6,864) $3,965 Basic earnings (loss) per common share $(0.17) $0.37 $(2.14) $1.23 Diluted earnings (loss) per common share $(0.17) $0.37 $(2.14) $1.21 Average shares outstanding - basic 3,224,246 3,215,447 3,208,451 3,234,309 Average shares outstanding - diluted 3,224,246 3,253,558 3,208,451 3,284,425 Return on Average Assets GAAP earnings (loss) -0.30% 0.83% -1.10% 0.72% Operating earnings (loss) -0.23% 0.84% 0.51% 0.71% Return on Average Common Equity GAAP earnings (loss) -3.38% 7.36% -10.89% 6.23% Operating earnings (loss) -2.60% 7.57% 5.04% 6.19% Return on Average Common Tangible Equity GAAP earnings (loss) -7.04% 13.69% -21.60% 11.83% Operating earnings (loss) -5.43% 13.88% 10.00% 11.74% Net Interest Margin 3.02% 3.20% 3.16% 3.21% Net Interest Margin (Tax Equivalent) 3.05% 3.28% 3.21% 3.29% RECONCILIATION OF GAAP TO NON-GAAP MEASURE (OPERATING EARNINGS) (Dollars in thousands) Three months ended Year ended December 31, December 31, 2008 2007 2008 2007 Net Income (Loss), As Reported (GAAP) $(488) $1,198 $(6,793) $3,965 Add: Income tax expense (benefit) (639) 573 (3,761) 1,725 (1,127) 1,771 (10,554) 5,690 Non-operating items: (Gain) loss on sale of securities - 24 28 (49) Other-than-temporary- impairment write-down on securities 169 - 14,494 - Pre-tax operating earnings (loss) (958) 1,795 3,968 5,641 Related income tax expense (benefit) (582) 581 825 1,708 Operating earnings (loss), (net income, excluding non operating items) $(376) $1,214 $3,143 $3,933
SOURCE First Community Corporation