In a recent 8-K filing with the Securities and Exchange Commission, First Community (NASDAQ:FCCO) Corporation (NASDAQ:FCCO), a state commercial bank headquartered in Lexington, South Carolina, disclosed significant changes in its executive management and board of directors.
Effective today, J. Ted Nissen will assume the role of Chief Executive Officer of First Community Bank. Alongside his new position, he has also been appointed as a director for both the bank and its holding company, expanding the board to 13 members. This announcement follows a previous filing on December 14, 2023, which outlined the planned transition.
Concurrent with his appointment, Nissen entered into an Amended and Restated Employment Agreement with the company, which supersedes his previous agreement from December 8, 2015. His new contract, which has an initial three-year term with automatic daily renewals to maintain a constant three-year duration, includes an annual base salary of $425,000. This salary is subject to annual review and potential increases.
Nissen's compensation package also includes eligibility to participate in long-term equity incentive programs, a salary continuation agreement, and various employee benefit plans. Additionally, he will have the opportunity to earn bonuses based on criteria set by the board of directors and will receive annual country club dues.
The agreement specifies conditions for termination, including without cause by the employer or by Nissen himself. In the event of termination without cause, Nissen is entitled to a severance payment equal to twice his monthly base salary for the first two months, followed by 100% of his current monthly salary for the next 22 months, plus any earned or accrued bonuses.
Furthermore, in the event of a change in control of the company, if Nissen experiences a qualifying termination, he will receive a payout equal to three times his annual base salary and bonuses, immediate vesting of all incentive awards, continued health plan participation, and reimbursement for life insurance premiums for two years.
The agreement also includes non-solicitation, non-competition, and confidentiality clauses effective during and for 24 months post-employment.
This executive transition is aimed at maintaining First Community Corporation's leadership stability and strategic direction. The information in this article is based on the press release statement provided by the company.
In other recent news, First Community Corporation reported a Q1 net income of $2.597 million, with diluted earnings per share at $0.34, marking a decrease from the previous year. Total deposits saw an increase, reaching $1.578 billion, with customer deposits at $1.518 billion, reflecting a 15.0% annualized growth rate. The bank also noted an increase in total loans by $23.3 million, an 8.3% annualized growth rate.
Investment advisory revenue stood at $1.358 million, with assets under management hitting a record $832.9 million. The Board of Directors approved a cash dividend for Q1 of 2024 at $0.14 per common share, maintaining the 89th consecutive quarter of cash dividends. Credit quality metrics remained strong, with non-performing assets at a low 0.04% of total assets.
The company also announced the closure of its banking office in downtown Augusta, Georgia, anticipating annual cost savings of $327 thousand. Regulatory capital ratios remained above well-capitalized minimum levels, with Tangible Book Value per share increasing to $15.51. These developments reflect the company's recent performance and strategic decisions.
InvestingPro Insights
As First Community Corporation (NASDAQ:FCCO) welcomes J. Ted Nissen into his new role as Chief Executive Officer, the company's financial health and market performance remain a key interest for investors.
According to recent data from InvestingPro, First Community Corporation boasts a market capitalization of $127.71M and an attractive price-to-earnings (P/E) ratio of 11.58 as of the last twelve months ending Q1 2024. This indicates a potentially undervalued stock given the company's earnings.
InvestingPro Tips highlight that FCCO has a high shareholder yield and has sustained dividend payments for 23 consecutive years, with a current dividend yield of 3.25%. These factors, combined with the fact that 3 analysts have revised their earnings upwards for the upcoming period, suggest confidence in the company's financial outlook. Moreover, analysts predict FCCO will be profitable this year, a continuation of its profitability over the last twelve months.
Investors considering FCCO as part of their portfolio can find more in-depth analysis and additional InvestingPro Tips at https://www.investing.com/pro/FCCO. For those looking to leverage the full suite of tools and insights offered by InvestingPro, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With several more InvestingPro Tips available on the platform, investors can make informed decisions backed by the latest data and expert analysis.
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