LEXINGTON, S.C., Oct. 19, 2016 /PRNewswire/ --
Third Quarter Highlights
- Net income of $1.677 million.
- Diluted EPS of $.25 per common share.
- Net loan growth of $12.1 million, an annualized growth rate of 9.5%.
- Pure deposit growth (including customer cash management accounts) of $26.6 million, an annualized growth rate of 17.7%.
- Excellent key credit quality metrics with a net charge-off of $10,000 during the quarter and a ratio of only 0.01% year-to-date. Non-performing assets were 0.57% at the end of the third quarter.
- Cash dividend of $0.08 per common share, the 59th consecutive quarter of cash dividends paid to common shareholders.
- Strong regulatory capital ratios remain of 10.17% (Tier 1 Leverage) and 15.93% (Total Capital) along with Tangible Common Equity / Tangible Assets (TCE/TA) ratio of 8.58%.
Today, First Community Corporation (Nasdaq: FCCO), the holding company for First Community Bank, reported net income for the third quarter of 2016 of $1.677 million. Diluted earnings per common share were $0.25 for the third quarter of 2016. Year-to-date 2016 net income was $4.890 million, a 8.04% increase over the $4.526 million earned in the first nine months of 2015. Year-to-date diluted earnings per share were $0.72 compared to $0.68, a 5.88% increase over the same time period in 2015.
Cash Dividend and Capital
The Board of Directors approved a cash dividend for the third quarter of 2016. The company will pay a $0.08 per share dividend to holders of the company's common stock. This dividend is payable November 14, 2016 to shareholders of record as of October 31, 2016. First Community President and CEO, Mike Crapps commented, "Our entire board is pleased that our performance enables the company to continue its cash dividend for the 59th consecutive quarter."
Each of the regulatory capital ratios (Leverage, Tier I Risk Based and Total Risk Based) exceed the well capitalized minimum levels currently required by regulatory statute. At September 30, 2016, the company's regulatory capital ratios (Leverage, Tier I Risk Based and Total Risk Based) were 10.17%, 15.09%, and 15.93%, respectively. This compares to the same ratios as of September 30, 2015, of 10.34%, 15.67%, and 16.48%, respectively. Additionally, the regulatory capital ratios for the company's wholly owned subsidiary, First Community Bank, were 9.72%, 14.43%, and 15.28% respectively as of September 30, 2016. Further, the company's ratio of tangible common equity to tangible assets was 8.58% as of September 30, 2016. Also, as of September 30, 2016, the Common Equity Tier One ratio for the company and the bank were 12.67% and 14.43%, respectively.
Asset Quality
The non-performing assets ratio declined to 0.57% of total assets, as compared to the prior quarter ratio of 0.66%. The nominal level of non-performing assets decreased to $5.201 million from $5.895 million at the end of the prior quarter, an 11.8% decrease. Trouble debt restructurings, that are still accruing interest, increased during the quarter to $1.815 million from $1.600 million at the end of the second quarter of 2016 as the result of a non-accruing TDR being reclassified as accruing. The decrease in loans in the Special Mention category is attributable to a line of credit that was significantly reduced during the quarter.
There was a net charge-off for the quarter of $10 thousand and for the first nine months of 2016 net charge-offs were $75 thousand (0.01%). The ratio of classified loans plus OREO now stands at 10.6% of total bank regulatory risk-based capital as of September 30, 2016.
Balance Sheet |
|||||||||
(Numbers in millions) |
|||||||||
Quarter |
Quarter |
Quarter |
|||||||
Ended |
Ended |
Ended |
3 Month |
3 Month |
|||||
9/30/16 |
6/30/16 |
12/31/15 |
$ Variance |
% Variance |
|||||
Assets |
|||||||||
Investments |
$288.2 |
$286.8 |
$283.8 |
$1.4 |
0.5% |
||||
Loans |
523.4 |
511.3 |
489.2 |
12.1 |
2.4% |
||||
Liabilities |
|||||||||
Total Pure Deposits |
$606.5 |
$581.0 |
$563.1 |
$25.5 |
4.4% |
||||
Certificates of Deposit |
159.4 |
148.6 |
153.0 |
10.8 |
7.3% |
||||
Total Deposits |
$765.9 |
$729.6 |
$716.1 |
$36.3 |
5.0% |
||||
Customer Cash Management |
$22.2 |
$21.1 |
$21.0 |
$1.1 |
5.2% |
||||
FHLB Advances |
21.0 |
32.4 |
24.8 |
(11.4) |
(35.2%) |
||||
Total Funding |
$809.1 |
$783.1 |
$761.9 |
$26.0 |
3.3% |
||||
Cost of Funds |
0.37% |
0.40% |
0.44% |
(3 bps) |
|||||
Cost of Deposits* |
0.25% |
0.25% |
0.25% |
0 bps |
|||||
(*including demand deposits) |
Mr. Crapps commented, "This was another quarter of strong performance by our company led by continued growth in loans and pure deposits. Our primary focus and goal this year has been quality growth in the loan portfolio. The asset quality is obvious given the metrics previously discussed. Growth of $34.2 million year-to-date for an annualized growth rate of 9.3% has enabled us to grow our top line revenue and bottom line income."
Revenue
Net Interest Income/Net Interest Margin
Net interest income was $6.651 million for the third quarter of 2016 and net interest margin, on a taxable equivalent basis, was 3.29%. Federal Home Loan Bank advances of approximately $11.0 million were paid down during the quarter with the prepayment expense offset by gains on the sale of securities. This early extinguishment of debt will have a positive impact on net interest margin in the future. Net interest income was positively impacted during the quarter by the payoff of a non-accrual loan of approximately $75 thousand.
Non-Interest Income
Non-interest income, adjusted for securities gains and losses on the early extinguishment of debt was $2.368 million for the third quarter, an increase of 7.6% on a linked quarter basis. Revenues in the mortgage line of business were $937 thousand in the third quarter of 2016, up slightly on a linked quarter basis. Production volume in the third quarter was just over $29 million, also up slightly over second quarter. The investment advisory line of business revenue for the third quarter was $283 thousand, a slight decrease on a linked quarter basis. Deposit fees generated in the commercial and retail banking line of business increased $37 thousand (10.9%) during the quarter. Mr. Crapps commented, "Our strategy of generating revenue streams from multiple lines of business continues to serve us well. We continue to work to leverage each of our lines of business."
Non-Interest Expense
Non-interest expense increased by $250 thousand (3.9%) on a linked quarter basis. This is primarily attributable to the write-down of several properties in other real estate owned, additional planned marketing expenses related to the production of new creative material, and an increase in professional fees which the company has incurred as a result of now being subject to the internal control audit requirements of Section 404 of the Sarbanes Oxley Act.
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 South Carolina. First Community Bank operates fifteen banking offices located in the Midlands, Aiken, and Augusta, Georgia, and a loan production office in Greenville, in addition to two other lines of business, First Community Bank Mortgage and First Community Financial Consultants, a financial planning/investment advisory division.
FORWARD-LOOKING STATEMENTS 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, goals, projections and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors, include, among others, the following: (1) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (2) the strength of the United States economy in general and the strength of the local economies in which we conduct operations may be different than expected resulting in, among other things, a deterioration in the credit quality or a reduced demand for credit, including the resultant effect on the company's loan portfolio and allowance for loan losses; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for loan loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (4) changes in the U.S. legal and regulatory framework; (5) adverse conditions in the stock market, the public debt markets and other capital markets (including changes in interest rate conditions) could have a negative impact on the company; (6) technology and cybersercurity risks, including potential business disruptions, reputational risks, and financial losses, associated with potential attacks on or failures by our computer systems and computer systems of our vendors and other third parties; and (7) risks, uncertainties and other factors disclosed in our most recent Annual Report on Form 10-K filed with the SEC, or in any of our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K filed with the SEC since the end of the fiscal year covered by our most recently filed Annual Report on Form 10-K, which are available at the SEC's Internet site (http://www.sec.gov).
Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. 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 thousands, except per share data) |
|||||||
At September 30, |
December 31, |
||||||
2016 |
2015 |
2015 |
|||||
Total Assets |
$ 915,251 |
$ 852,329 |
$ 862,734 |
||||
Other short-term investments (1) |
24,944 |
23,773 |
11,968 |
||||
Investment Securities |
288,174 |
273,682 |
283,841 |
||||
Loans held for sale |
4,250 |
3,568 |
2,962 |
||||
Loans |
523,441 |
483,931 |
489,191 |
||||
Allowance for Loan Losses |
5,047 |
4,468 |
4,596 |
||||
Goodwill |
5,078 |
5,078 |
5,078 |
||||
Other Intangibles |
1,177 |
1,508 |
1,419 |
||||
Total Deposits |
765,923 |
704,370 |
716,151 |
||||
Securities Sold Under Agreements to Repurchase |
22,232 |
19,908 |
21,033 |
||||
Federal Home Loan Bank Advances |
21,022 |
27,543 |
24,788 |
||||
Junior Subordinated Debt |
14,964 |
15,464 |
14,964 |
||||
Shareholders' Equity |
84,208 |
78,488 |
79,038 |
||||
Book Value Per Common Share |
$ 12.56 |
$ 11.74 |
$ 11.81 |
||||
Tangible Book Value Per Common Share |
$ 11.63 |
$ 10.76 |
$ 10.84 |
||||
Equity to Assets |
9.20% |
9.21% |
9.16% |
||||
Tangible common equity to tangible assets |
8.58% |
8.50% |
8.47% |
||||
Loan to Deposit Ratio |
68.90% |
69.21% |
68.75% |
||||
Allowance for Loan Losses/Loans |
0.96% |
0.92% |
0.94% |
||||
Allowance for Loan Losses/Loans plus credit mark |
1.03% |
1.17% |
1.15% |
||||
(1) Includes federal funds sold, securities sold under agreements to resell and interest-bearing deposits |
|||||||
Regulatory Ratios: |
|||||||
Leverage Ratio |
10.17% |
10.34% |
10.19% |
||||
Tier 1 Capital Ratio |
15.09% |
15.67% |
15.40% |
||||
Total Capital Ratio |
15.93% |
16.48% |
16.21% |
||||
Common Equity Tier 1 |
12.67% |
12.98% |
12.90% |
||||
Tier 1 Regulatory Capital |
$ 90,505 |
$ 85,844 |
$ 86,682 |
||||
Total Regulatory Capital |
$ 95,551 |
$ 90,312 |
$ 91,278 |
||||
Common Equity Tier 1 |
$ 76,005 |
$ 71,106 |
$ 72,444 |
||||
Average Balances: |
|||||||
Three months ended |
Nine months ended |
||||||
September 30, |
September 30, |
||||||
2016 |
2015 |
2016 |
2015 |
||||
Average Total Assets |
$ 900,893 |
$ 837,562 |
$ 882,318 |
$ 827,920 |
|||
Average Loans |
520,130 |
482,198 |
507,326 |
468,704 |
|||
Average Earning Assets |
829,761 |
769,544 |
810,380 |
759,252 |
|||
Average Deposits |
751,504 |
688,491 |
732,253 |
681,830 |
|||
Average Other Borrowings |
58,254 |
65,830 |
61,201 |
63,881 |
|||
Average Shareholders' Equity |
84,449 |
77,384 |
82,359 |
76,719 |
|||
Asset Quality: |
|||||||
September 30, |
June 30, |
March 31, |
December 31, |
||||
2016 |
2016 |
2016 |
2015 |
||||
Loan Risk Rating by Category (End of Period) |
|||||||
Special Mention |
$ 5,109 |
$ 13,297 |
$ 8,581 |
$ 9,869 |
|||
Substandard |
8,460 |
8,552 |
10,445 |
10,327 |
|||
Doubtful |
- |
- |
- |
- |
|||
Pass |
509,872 |
489,454 |
474,995 |
468,995 |
|||
$ 523,441 |
$ 511,303 |
$ 494,021 |
$ 489,191 |
||||
September 30, |
June 30, |
March 31 |
December |
||||
2016 |
2016 |
2016 |
31, 2015 |
||||
Nonperforming Assets: |
|||||||
Non-accrual loans |
$ 3,904 |
$ 4,502 |
6,013 |
$ 4,839 |
|||
Other real estate owned |
1,198 |
1,355 |
1,484 |
2,458 |
|||
Accruing loans past due 90 days or more |
99 |
38 |
32 |
- |
|||
Total nonperforming assets |
$ 5,201 |
$ 5,895 |
$ 7,529 |
$ 7,297 |
|||
Accruing trouble debt restructurings |
$ 1,815 |
$ 1,600 |
$ 1,634 |
$ 1,632 |
|||
Three months ended |
Nine months ended |
||||||
September |
September |
September |
September |
||||
30, 2016 |
30, 2015 |
30, 2016 |
30, 2015 |
||||
Loans charged-off |
$ 40 |
$ 16 |
$ 111 |
$ 727 |
|||
Overdrafts charged-off |
17 |
14 |
46 |
37 |
|||
Loan recoveries |
(33) |
(19) |
(63) |
(94) |
|||
Overdraft recoveries |
(14) |
(5) |
(19) |
(16) |
|||
Net Charge-offs |
$ 10 |
$ 6 |
$ 75 |
$ 654 |
|||
Net Charge-offs to Average Loans |
0.00% |
0.00% |
0.01% |
0.14% |
|||
FIRST COMMUNITY CORPORATION |
|||||||||||||
INCOME STATEMENT DATA |
|||||||||||||
(Dollars in thousands, except per share data) |
|||||||||||||
Three months ended |
Three months ended |
Three months ended |
Nine months ended |
||||||||||
September 30, |
June 30, |
March 31, |
September 30, |
||||||||||
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
||||||
Interest Income |
$ 7,400 |
$ 7,114 |
$ 7,459 |
$ 7,049 |
$ 7,137 |
$ 7,283 |
$ 21,996 |
$ 21,446 |
|||||
Interest Expense |
749 |
861 |
782 |
845 |
800 |
835 |
2,331 |
2,541 |
|||||
Net Interest Income |
6,651 |
6,253 |
6,677 |
6,204 |
6,337 |
6,448 |
19,665 |
18,905 |
|||||
Provision for Loan Losses |
179 |
193 |
217 |
391 |
140 |
406 |
536 |
990 |
|||||
Net Interest Income After Provision |
6,472 |
6,060 |
6,460 |
5,813 |
6,197 |
6,042 |
19,129 |
17,915 |
|||||
Non-interest Income: |
|||||||||||||
Deposit service charges |
377 |
390 |
340 |
346 |
347 |
347 |
1,064 |
1,083 |
|||||
Mortgage banking income |
937 |
964 |
913 |
980 |
665 |
735 |
2,515 |
2,679 |
|||||
Investment advisory fees and non-deposit commissions |
283 |
290 |
297 |
407 |
291 |
296 |
871 |
993 |
|||||
Gain on sale of securities |
478 |
- |
64 |
167 |
59 |
104 |
601 |
271 |
|||||
Gain (loss) on sale of other assets |
45 |
17 |
(84) |
3 |
3 |
4 |
(36) |
24 |
|||||
Loss on early extinguishment of debt |
(459) |
- |
- |
- |
- |
(103) |
(459) |
(103) |
|||||
Other |
726 |
668 |
734 |
662 |
724 |
598 |
2,184 |
1,928 |
|||||
Total non-interest income |
2,387 |
2,329 |
2,264 |
2,565 |
2,089 |
1,981 |
6,740 |
6,875 |
|||||
Non-interest Expense: |
|||||||||||||
Salaries and employee benefits |
3,888 |
3,595 |
3,833 |
3,658 |
3,751 |
3,565 |
11,472 |
10,818 |
|||||
Occupancy |
531 |
513 |
511 |
500 |
559 |
485 |
1,601 |
1,498 |
|||||
Equipment |
442 |
437 |
437 |
394 |
429 |
402 |
1,308 |
1,233 |
|||||
Marketing and public relations |
240 |
129 |
195 |
328 |
94 |
226 |
529 |
683 |
|||||
FDIC assessment |
60 |
113 |
138 |
138 |
138 |
138 |
336 |
389 |
|||||
Other real estate expense |
115 |
126 |
21 |
154 |
51 |
154 |
187 |
434 |
|||||
Amortization of intangibles |
80 |
98 |
80 |
98 |
83 |
103 |
243 |
299 |
|||||
Other |
1,227 |
1,056 |
1,118 |
1,119 |
1,237 |
1,027 |
3,582 |
3,202 |
|||||
Total non-interest expense |
6,583 |
6,067 |
6,333 |
6,389 |
6,342 |
6,100 |
19,258 |
18,556 |
|||||
Income before taxes |
2,276 |
2,322 |
2,391 |
1,989 |
1,944 |
1,923 |
6,611 |
6,234 |
|||||
Income tax expense |
599 |
643 |
646 |
546 |
476 |
519 |
1,721 |
1,708 |
|||||
Net Income |
$ 1,677 |
$ 1,679 |
$ 1,745 |
$ 1,443 |
$ 1,468 |
$ 1,404 |
$ 4,890 |
$ 4,526 |
|||||
Per share data: |
|||||||||||||
Net income, basic |
$ 0.26 |
$ 0.26 |
$ 0.27 |
$ 0.22 |
$ 0.22 |
$ 0.22 |
$ 0.74 |
$ 0.69 |
|||||
Net income, diluted |
$ 0.25 |
$ 0.25 |
$ 0.26 |
$ 0.22 |
$ 0.22 |
$ 0.21 |
$ 0.72 |
$ 0.68 |
|||||
Average number of shares outstanding - basic |
6,572,614 |
6,559,844 |
6,553,752 |
6,539,154 |
6,572,969 |
6,522,420 |
6,584,074 |
6,548,955 |
|||||
Average number of shares outstanding - diluted |
6,762,074 |
6,712,026 |
6,732,574 |
6,697,620 |
6,751,074 |
6,664,654 |
6,775,071 |
6,698,570 |
|||||
Shares outstanding period end |
6,703,317 |
6,684,563 |
6,699,030 |
6,679,938 |
6,893,042 |
6,683,960 |
6,703,317 |
6,684,563 |
|||||
Return on average assets |
0.74% |
0.81% |
0.80% |
0.70% |
0.68% |
0.70% |
0.74% |
0.73% |
|||||
Return on average common equity |
7.90% |
8.73% |
8.53% |
7.53% |
7.35% |
7.54% |
7.93% |
7.88% |
|||||
Return on average common tangible equity |
8.54% |
9.55% |
9.24% |
8.25% |
7.99% |
8.23% |
8.60% |
8.62% |
|||||
Net Interest Margin (non taxable equivalent) |
3.19% |
3.22% |
3.32% |
3.25% |
3.22% |
3.51% |
3.24% |
3.33% |
|||||
Net Interest Margin (taxable equivalent) |
3.29% |
3.32% |
3.43% |
3.34% |
3.33% |
3.62% |
3.35% |
3.43% |
|||||
Efficiency Ratio |
72.99% |
70.53% |
71.34% |
74.27% |
73.86% |
73.27% |
73.33% |
72.45% |
|||||
FIRST COMMUNITY CORPORATION |
||||||||
Yields on Average Earning Assets and Rates |
||||||||
on Average Interest-Bearing Liabilities |
||||||||
Three months ended September 30, 2016 |
Three months ended September 30, 2015 |
|||||||
Average |
Interest |
Yield/ |
Average |
Interest |
Yield/ |
|||
Balance |
Earned/Paid |
Rate |
Balance |
Earned/Paid |
Rate |
|||
Assets |
||||||||
Earning assets |
||||||||
Loans |
$ 520,130 |
$ 5,977 |
4.57% |
$ 482,198 |
$ 5,795 |
4.77% |
||
Securities: |
286,330 |
1,389 |
1.93% |
269,931 |
1,290 |
1.90% |
||
Federal funds sold and securities purchased |
23,301 |
34 |
0.58% |
17,415 |
29 |
0.66% |
||
Total earning assets |
829,761 |
7,400 |
3.55% |
769,544 |
7,114 |
3.67% |
||
Cash and due from banks |
10,927 |
9,895 |
||||||
Premises and equipment |
30,088 |
29,879 |
||||||
Other assets |
35,062 |
32,604 |
||||||
Allowance for loan losses |
(4,945) |
(4,360) |
||||||
Total assets |
$ 900,893 |
$ 837,562 |
||||||
Liabilities |
||||||||
Interest-bearing liabilities |
||||||||
Interest-bearing transaction accounts |
$ 151,778 |
$ 43 |
0.11% |
$ 137,055 |
$ 40 |
0.12% |
||
Money market accounts |
165,290 |
105 |
0.25% |
157,726 |
112 |
0.28% |
||
Savings deposits |
74,986 |
23 |
0.12% |
59,355 |
18 |
0.12% |
||
Time deposits |
182,716 |
294 |
0.64% |
183,943 |
273 |
0.59% |
||
Other borrowings |
58,254 |
284 |
1.94% |
65,830 |
418 |
2.52% |
||
Total interest-bearing liabilities |
633,024 |
749 |
0.47% |
603,909 |
861 |
0.57% |
||
Demand deposits |
176,734 |
150,412 |
||||||
Other liabilities |
6,686 |
5,857 |
||||||
Shareholders' equity |
84,449 |
77,384 |
||||||
Total liabilities and shareholders' equity |
$ 900,893 |
$ 837,562 |
||||||
Cost of funds, including demand deposits |
0.37% |
0.45% |
||||||
Net interest spread |
3.08% |
3.10% |
||||||
Net interest income/margin |
$ 6,651 |
3.19% |
$ 6,253 |
3.22% |
||||
Net interest income/margin FTE basis |
$ 6,867 |
3.29% |
$ 6,448 |
3.32% |
||||
FIRST COMMUNITY CORPORATION |
|||||||
Yields on Average Earning Assets and Rates |
|||||||
on Average Interest-Bearing Liabilities |
|||||||
Nine months ended September 30, 2016 |
Nine months ended September 30, 2015 |
||||||
Average |
Interest |
Yield/ |
Average |
Interest |
Yield/ |
||
Balance |
Earned/Paid |
Rate |
Balance |
Earned/Paid |
Rate |
||
Assets |
|||||||
Earning assets |
|||||||
Loans |
$ 507,326 |
$ 17,582 |
4.63% |
$ 468,704 |
$ 17,373 |
4.96% |
|
Securities: |
284,241 |
4,331 |
2.04% |
274,306 |
3,987 |
1.94% |
|
Federal funds sold and securities purchased |
|||||||
under agreements to resell |
18,813 |
83 |
0.59% |
16,242 |
86 |
0.71% |
|
Total earning assets |
810,380 |
21,996 |
3.63% |
759,252 |
21,446 |
3.78% |
|
Cash and due from banks |
10,735 |
10,802 |
|||||
Premises and equipment |
30,136 |
29,569 |
|||||
Other assets |
35,854 |
32,611 |
|||||
Allowance for loan losses |
(4,787) |
(4,314) |
|||||
Total assets |
$ 882,318 |
$ 827,920 |
|||||
Liabilities |
|||||||
Interest-bearing liabilities |
|||||||
Interest-bearing transaction accounts |
$ 151,989 |
132 |
0.12% |
$ 135,877 |
118 |
0.12% |
|
Money market accounts |
165,240 |
323 |
0.26% |
157,180 |
315 |
0.27% |
|
Savings deposits |
67,050 |
59 |
0.12% |
57,115 |
50 |
0.12% |
|
Time deposits |
179,454 |
844 |
0.63% |
188,438 |
821 |
0.58% |
|
Other borrowings |
61,201 |
973 |
2.12% |
63,881 |
1,237 |
2.59% |
|
Total interest-bearing liabilities |
624,934 |
2,331 |
0.50% |
602,491 |
2,541 |
0.56% |
|
Demand deposits |
168,520 |
143,220 |
|||||
Other liabilities |
6,505 |
5,490 |
|||||
Shareholders' equity |
82,359 |
76,719 |
|||||
Total liabilities and shareholders' equity |
$ 882,318 |
$ 827,920 |
|||||
Cost of funds, including demand deposits |
0.39% |
0.46% |
|||||
Net interest spread |
3.13% |
3.22% |
|||||
Net interest income/margin |
$ 19,665 |
3.24% |
$ 18,905 |
3.33% |
|||
Net interest income/margin FTE basis |
$ 20,313 |
3.35% |
$ 19,465 |
3.43% |
|||
The tables below provide a reconciliation of non‑GAAP measures to GAAP for the periods indicated:
September 30, |
September 30, |
December 31, |
||||||||
Tangible book value per common share |
2016 |
2015 |
2015 |
|||||||
Tangible common equity per common share (non‑GAAP) |
$ |
11.63 |
$ |
10.34 |
$ |
10.84 |
||||
Effect to adjust for intangible assets |
0.93 |
0.98 |
0.97 |
|||||||
Book value per common share (GAAP) |
$ |
12.56 |
$ |
11.74 |
$ |
11.81 |
||||
Tangible common shareholders' equity to tangible assets |
||||||||||
Tangible common equity to tangible assets (non‑GAAP) |
8.58 |
% |
8.50 |
% |
8.47 |
% |
||||
Effect to adjust for intangible assets |
0.62 |
% |
0.71 |
% |
0.69 |
% |
||||
Common equity to assets (GAAP) |
9.20 |
% |
9.21 |
% |
9.16 |
% |
Three months ended |
Three Months ended |
Three months ended |
Nine months ended |
||||||||||||||||||
September 30, |
June 30, |
March 31, |
September 31, |
||||||||||||||||||
Return on average tangible common equity |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
|||||||||||||
Return on average tangible common equity (non‑GAAP) |
8.54 |
% |
9.55 |
% |
9.24 |
% |
8.25 |
% |
7.99 |
% |
8.23 |
% |
8.60 |
% |
8.62 |
% |
|||||
Effect to adjust for intangible assets |
(0.64) |
% |
(0.82) |
% |
(0.71) |
% |
(0.72) |
% |
(0.64) |
% |
(0.69) |
% |
(0.67) |
% |
(0.74) |
% |
|||||
Return on average common equity (GAAP) |
7.90 |
% |
8.73 |
% |
8.53 |
% |
7.53 |
% |
7.35 |
% |
7.54 |
% |
7.93 |
% |
7.88 |
% |
Certain financial information presented above is determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). These non-GAAP financial measures include "tangible book value at period end," "return on average tangible common equity" and "tangible common shareholders' equity to tangible assets." "Tangible book value at period end" is defined as total equity reduced by recorded intangible assets divided by total common shares outstanding. "Tangible common shareholders' equity to tangible assets" is defined as total common equity reduced by recorded intangible assets divided by total assets reduced by recorded intangible assets. Our management believes that these non-GAAP measures are useful because they enhance the ability of investors and management to evaluate and compare our operating results from period-to-period in a meaningful manner. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results as reported under GAAP.
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SOURCE First Community Corporation
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