LEXINGTON, S.C. - First Community (NASDAQ:FCCO) Corporation (NASDAQ:FCCO), the holding company for First Community Bank, has reported a net income of $2.597 million for the first quarter of 2024, with diluted earnings per share at $0.34. This performance marks a decrease from the previous year's $3.463 million net income and $0.45 diluted EPS, and from the last quarter's $3.297 million net income and $0.43 diluted EPS.
The bank's total deposits grew to $1.578 billion, with customer deposits reaching $1.518 billion as of March 31, 2024. This reflects a customer deposit growth of $54.7 million during the quarter, a 15.0% annualized growth rate. Total loans also increased by $23.3 million, an 8.3% annualized growth rate.
First Community's investment advisory revenue stood at $1.358 million, with assets under management (AUM) hitting a record $832.9 million, up 10.3% from the end of the previous year. The mortgage line of business generated fee revenue of $425 thousand, including $418 thousand in gain-on-sale revenue.
The Board of Directors has approved a cash dividend for the first quarter of 2024 of $0.14 per common share, maintaining the company's 89th consecutive quarter of cash dividends. The dividend is payable on May 14, 2024, to shareholders of record as of April 30, 2024.
Credit quality metrics remain strong, with net charge-offs during the quarter at $22 thousand and non-performing assets at a low 0.04% of total assets. The company continues to demonstrate excellent asset quality, with no individual or industry concentrations posing significant risk.
Despite a challenging interest rate environment, First Community saw increases in total deposits, non-interest bearing deposits, and cash management and sweep accounts. However, costs of deposits and funds also rose, reflecting the current rate conditions.
The bank's regulatory capital ratios remain above well-capitalized minimum levels, with the Leverage, Tier I Risk Based, and Total Risk Based ratios at 8.35%, 12.65%, and 13.71%, respectively. Tangible Book Value (TBV) per share increased to $15.51 from $15.23 at the end of the previous quarter.
In other developments, the company announced the closure of its banking office in downtown Augusta, Georgia, effective June 27, 2024, with anticipated cost savings of $327 thousand annually.
This article is based on a press release statement from First Community Corporation.
InvestingPro Insights
First Community Corporation (NASDAQ:FCCO) has navigated through a tough quarter, as evidenced by their reported decrease in net income and diluted earnings per share. Despite these challenges, the company has maintained its commitment to shareholder returns, declaring its 89th consecutive quarterly cash dividend. An InvestingPro Tip highlights that First Community Corporation has a history of maintaining dividend payments for 23 consecutive years, underlining its dedication to consistent shareholder returns.
While the company's revenue has seen a slight decline over the last twelve months, with a -2.67% revenue growth, their commitment to cost savings is evident in the planned closure of their Augusta banking office, which is expected to save $327 thousand annually. Another InvestingPro Tip for FCCO points out that analysts predict the company will remain profitable this year, aligning with the company's positive performance over the last twelve months.
InvestingPro Data further reveals the company's financial health and market position. First Community Corporation boasts a market capitalization of $120.46M, with a Price/Earnings (P/E) ratio of 10.1, which is slightly adjusted to 10.25 based on the last twelve months as of Q4 2023. In terms of investor returns, the dividend yield stands at an attractive 3.36%, rewarding investors even in a challenging economic landscape.
For readers interested in a deeper analysis and more InvestingPro Tips, there are additional tips available on InvestingPro, which can be accessed by visiting https://www.investing.com/pro/FCCO. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing even more insights to make informed investment decisions.
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