First Community Corp. has a market cap of $18.53 million; its shares were traded at around $5.69 with a P/E ratio of 9.33 and P/S ratio of 0.51. The dividend yield of First Community Corp. stocks is 2.81%.
This is the annual revenues and earnings per share of FCCO over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of FCCO.
Highlight of Business Operations:· A public-private investment fund that is intended to leverage public and private capital with public financing to purchase up to $500 billion to $1 trillion of legacy toxic assets from financial institutions; and
· The second plan is the Securities Program, which is administered by the Treasury and involves the creation of public-private investment funds (PPIFs) to target investments in eligible residential mortgage-backed securities and commercial mortgage-backed securities issued before 2009 that originally were rated AAA or the equivalent by two or more nationally recognized statistical rating organizations, without regard to rating enhancements (collectively, Legacy Securities). Legacy Securities must be directly secured by actual mortgage loans, leases or other assets, and may be purchased only from financial institutions that meet TARP eligibility requirements. Treasury received over 100 unique applications to participate in the Legacy Securities PPIP and in July 2009 selected nine PPIF managers. As of June 30, 2010, the PPIFs had completed their fundraising and have closed on approximately $7.4 billion of private sector equity capital, which was matched 100 percent by Treasury, representing $14.7 billion of total equity capital. Treasury has also provided $14.7 billion of debt capital, representing $29.4 billion of total purchasing power. As of June 30, 2010, PPIFs have drawn-down approximately $16.2 billion of total capital which has been invested in eligible assets and cash equivalents pending investment.
Our net income for the six months ended June 30, 2010 was $1.1 million, or $.23 diluted earnings per common share, as compared to $986,000, or $0.20 diluted earnings per common share, for the six months ended June 30, 2009. The increase during the periods was a result of a 30 basis point improvement in our taxable equivalent net interest margin from 3.06% in 2009 to 3.36% in 2010. In addition, we had a decrease in our provision for loan losses of $262,000 from $1.4 million in the first six months of 2009 as compared to $1.1 million in the same period of 2010. The effect of these positive changes were partially offset by a decrease in non-interest income from $2.6 million in the six months ended June 30, 2009 to $1.8 million in the same period of 2010. Average earning assets were $554.5 million for the six month period ended June 30, 2010 as compared to $573.6 million for the six months ended June 30, 2009. The decrease in average earning assets was a result of prepaying approximately $27.0 million in Federal Home Loan Bank advances late in the fourth quarter of 2009 as well as repaying $3.3 million in maturing advances in the first quarter of 2010. Despite the decrease in earning assets, we realized an increase in net interest income of $540,000 in the first six months of 2010 as compared to the first six months of 2009 as a result of the 30 basis point increase in our net interest margin.
Net interest income was $9.2 million for the six months ended June 30, 2010 as compared to $8.6 million for the six months ended June 30, 2009. This increase was due to the increase in our net interest margin. Net interest margin on a taxable equivalent basis increased 30 basis points, from 3.06% at June 30, 2009 to 3.36% at June 30, 2010. Yield on earning assets decreased by 38 basis points in the first half of 2010 as compared to the same period in 2009. The yield on earning assets for the six months ended June 30, 2010 and 2009 was 5.10% and 5.48%, respectively. The cost of interest-bearing liabilities during the first six months of 2010 was 2.02% as compared to 2.74% in the same period of 2009, resulting in a 72 basis points decrease. As a result of the ongoing recessionary economic conditions during 2008, throughout 2009 and thus far in 2010, interest rates continue to remain at historically low levels. There were three primary contributors to the improvement in the net interest margin. First, the repricing of time deposits have resulted in the cost of those funds decreasing by 113 basis points during the first half of 2010 as compared to the same period in 2009. Second, during the fourth quarter of 2009 we prepaid $27.0 million in Federal Home Loan Bank advances which contributed to a 10 basis point decrease in cost of other borrowed funds in the first half of 2010 as compared to the same period in 2009. Third, the percentage of non-interest bearing deposits supporting our total funding sources increased from 11.6% in the first half of 2009 to 13.6% in the same period of 2010.
The effects of the slowing economy have resulted in some deterioration of our loan portfolio in general as evidenced by the increase in non-performing assets from $8.3 million (1.37% of total assets) at December 31, 2009 to $11.6 million (1.91% of total assets) at June 30, 2010. While we believe these ratios are favorable in comparison to current industry results, we continue to be concerned about the impact of this economic environment on our customer base of local businesses and professionals. There are 36 loans included in non-performing status (non-accrual loans and loans past due 90 days and still accruing) totaling $6.9 million. The two largest are in the amount of $1.4 million and $826,000, respectively. The first relationship in the amount of $1.4 million is a mortgage on a developed parking complex near the University of South Carolina athletic complex, whereby 72 individual parking spaces are to be sold to individuals. It is not anticipated that we will incur a material loss if we are required to foreclose on the property in the future. The second relationship in the amount of $826,000 is secured by a first lien on a single family residential property. The average balance of the remaining 34 loans is approximately $145,000, and the majority of these loans are secured by first mortgage liens. At the time the loans are placed in non-accrual status we typically obtain an updated evaluation and generally write the balance down to the fair value if the loan balance exceeds fair value. At June 30, 2010, we had no loans delinquent more than 90 days and still accruing interest, and loans totaling $2.3 million (0.68% of total loans) that were delinquent 30 days to 89 days.
Our management continuously monitors non-performing, classified and past due loans, to identify deterioration regarding the condition of these loans. We have identified 5 loan relationships in the amount of $2.2 million that are current as to principal and interest and not included in non-performing assets that could represent potential problem loans. One relationship is in the amount of $851,000 secured by beach front property located on the coast of South Carolina. We are currently in the process of obtaining an updated appraisal and, if ultimately the borrower goes into default on the loan, we estimate the value of the underlying collateral to be in the range of $650,000 to $700,000. The other four relationships average $345,000 and have previously been in delinquent status at various times but subsequently been brought current. These loans are on various investment properties and it is not anticipated that we would have a material loss in the event we should subsequently foreclose on the properties.
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