First Community Corp (FCCO) Reports Q3 2023 Earnings and Announces Cash Dividend
First Community Corp (NASDAQ:FCCO) reported Q3 2023 net income of $1.756 million, down from $3.327 million in Q2 2023 and $3.951 million in Q3 2022.
The company announced a cash dividend of $0.14 per share for Q3 2023, marking the 87th consecutive quarter of dividend payouts.
Loan growth remained strong with total loans increasing by $59.5 million to $1.092 billion at the end of Q3 2023.
First Community Corp's deposit franchise continues to be a strength with total deposits increasing by $71.3 million during Q3 2023 to $1.492 billion.
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First Community Corp (NASDAQ:FCCO), the holding company for First Community Bank, announced its third-quarter results on October 18, 2023. The company reported a net income of $1.756 million for Q3 2023, a decrease from $3.327 million in Q2 2023 and $3.951 million in Q3 2022. Diluted earnings per common share were $0.23 for Q3 2023, compared to $0.43 for Q2 2023 and $0.52 for Q3 2022.
Financial Highlights
Year-to-date through September 30, 2023, net income was $8.546 million compared to $10.570 million during the first nine months of 2022. Diluted earnings per share for the first nine months of 2023 were $1.12, compared to $1.39 during the same time period in 2022.
During Q3 2023, the company sold $39.9 million of book value U.S. Treasuries in its available-for-sale portfolio. This sale created a one-time pre-tax loss of $1.2 million but provided additional liquidity which is being used to pay down borrowings and fund loan growth.
Dividend and Capital
The Board of Directors approved a cash dividend for the third quarter of 2023. The company will pay a $0.14 per share dividend to holders of the companys common stock. This dividend is payable November 14, 2023 to shareholders of record as of October 31, 2023.
First Community Corp's regulatory capital ratios for the bank exceed the well capitalized minimum levels currently required by regulatory statute. At September 30, 2023, the banks regulatory capital ratios (Leverage, Tier I Risk Based and Total Risk Based) were 8.63%, 12.47%, and 13.50%, respectively.
Asset Quality and Balance Sheet
Asset quality metrics remained strong as of September 30, 2023. The non-performing assets ratio for the third quarter was 0.04% of total assets and a total past due ratio of 0.06% of total loans.
Total loans increased during the third quarter by $59.5 million to $1.092 billion at September 30, 2023, compared to $1.032 billion at June 30, 2023. Total deposits increased $71.3 million during the third quarter to $1.492 billion at September 30, 2023 compared to $1.421 billion at June 30, 2023.
Revenue and Non-Interest Expense
Net interest income for the third quarter was $12.103 million, compared to $12.137 million in the second quarter of 2023 and $12.794 million for the third quarter of 2022. Non-interest expense was $11.273 million in the third quarter of 2023, up $518 thousand over the second quarter of 2023.
First Community Corp (NASDAQ:FCCO) continues to focus on local businesses, professionals, organizations, and individuals, with no individual or industry concentrations. The company's successful deposit franchise continues to be a strength, demonstrated by the stability of the deposit base during the third quarter.
This article first appeared on GuruFocus.
