Form 8-K - Current report

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): September 3, 2024

 

   First Community Corporation  

(Exact name of registrant as specified in its charter)

 

   South Carolina    

(State or other jurisdiction of incorporation)

 

000-28344	57-1010751
(Commission File Number)	(IRS Employer Identification No.)
5455 Sunset Blvd, Lexington, South Carolina	29072
(Address of principal executive offices)	(Zip Code)

 

   [phone]   

(Registrant’s telephone number, including area code)

 

   Not Applicable   

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class	Trading Symbol(s)	Name of exchange on which registered
Common stock, par value $1.00 per share	FCCO	The Nasdaq Stock Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Item 7.01. Regulation FD Disclosure.

 

First Community Corporation (“First Community”) is furnishing investor presentation materials as Exhibit 99.1 to this Form 8-K, which are to be used by First Community management in meetings with investors on September 4-5, 2024 at the Raymond James U.S. Bank and Banking on Tech Conferences in Chicago, Illinois.

 

The information in Items 7.01 and 9.01, including Exhibit 99.1, is furnished to, and not filed with, the U.S. Securities and Exchange Commission.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

Item	Exhibit List
99.1	First Community Corporation Investor Presentation. This Exhibit is furnished to, and not filed with, the U.S. Securities and Exchange Commission.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	FIRST COMMUNITY CORPORATION
	By:	/s/ D. Shawn Jordan
	Name:	D. Shawn Jordan
	Title:	Chief Financial Officer
Dated: September 3, 2024

Exhibit 99.1

 

 

The Bank Behind Your Business September 2024

OUTLINE 2 I. Overview 3 II. 2Q24 Highlights / Topics of Interest 9 » Earning Assets 10 » Funding 15 » Net Interest Margin (NIM) 19 » Risk Management 24 » Capital 29 » Non - Interest Income Highlights 33 » Revenue 38 » Non - Interest Expense 41 » Net Income 44 Impacting Lives for Success and Significance

Impacting Lives for Success and Significance

OUR IDENTITY

» Columbia (Midlands of SC) ▪ State Capitol ▪ University of SC ▪ Fort Jackson ▪ Quality Public Schools ▪ Lake Murray ▪ Riverbanks Zoo » Greenville (Upstate of SC) ▪ Great Pure Business Market ▪ Attractive to Millennials » Augusta (CSRA) ▪ Cybersecurity x Fort Gordon x Private Sector ▪ Augusta University ▪ Excellent Medical Community ▪ The Masters Tournament » Rock Hill (Piedmont) ▪ Winthrop University ▪ Lake Wylie ▪ Included in the Charlotte MSA ▪ Home of Sports & Event Center, as well as “Come - See - Me” & Christmasville Festivals Geographically Diverse and Growing Markets

OVERVIEW

2Q24 HIGHLIGHTS / TOPICS OF INTEREST Impacting Lives for Success and Significance

Impacting Lives for Success and Significance

$863.7

Notes: 12 1 Excluding prepayments, 07/01/24 – 12.31/24 = $89.4 million and 2025 = $148.0 million. Loan Portfolio Growth EARNING ASSETS

Investment Portfolio Yield 1.98% 1.56% 2.78% 3.59% 3.66% AOCI/(AOCL) 1 $11.3 $3.3 ($32.4) ($28.2) ($27.3) (4 th Quarter for 2020 - 2023, and 2 nd Quarter for 2024) Average Life: 5.6 years Effective Duration: 3.8 Composition 6/30/24 $361.9 $564.8 $506.2 EARNING ASSETS Millions $488.6 13 $566.6 1 AOCI is accumulated other comprehensive income and (AOCL) is accumulated other comprehensive loss. $228.7

Notes: 14 Investment Portfolio EARNING ASSETS

Impacting Lives for Success and Significance

Total Deposit Cost 0.20% 0.11% 0.25% 1.69% 1.98% Non - Interest Bearing 32% 33% 33% 29% 29% Millions $1,230.3 $1,415.5 $1,454.1 $1,573.9 (4 th Quarter for 2020 - 2023 & 2 nd Quarter for 2024) 16 High Quality Deposit Franchise $1,663.8 FUNDING 12/31/2020 12/31/2021 12/31/2022 12/31/2023 06/30/2 024

2Q24 Notes: 17 High Quality Deposit Franchise FUNDING 1 Trough to peak. 2 Subject to collateral requirements.

18 2Q24 » Sources of funds (Millions) Customer Deposits $ 44.1 Investment Portfolio 6.5 Short - Term (overnight) Investments 36.6 Capital 2.7 Other 1.6 Total $ 91.5 » Uses of funds Customer Cash Management $ 22.5 Brokered CDs 17.6 FHLB Borrowings 10.0 Loans (includes held held - for - sale) 36.9 Cash 4.5 Total $91.5 Summary: During the quarter, we utilized customer deposit growth and excess overnight investments to fund loan growth and reduce wholesale funding. Sources and Uses FUNDING

Impacting Lives for Success and Significance

20 NET INTEREST MARGIN (NIM)

21 NET INTEREST MARGIN (NIM)

22 NET INTEREST MARGIN (NIM)

23 Notes: NET INTEREST MARGIN (NIM)

Impacting Lives for Success and Significance

25 Credit Quality RISK MANAGEMENT NPA / Assets Net Charge - Offs

26 Provision for (Release of) Credit Losses (000s omitted) Credit Quality RISK MANAGEMENT

2Q24 Notes: » Key Loan Portfolio Sectors 27 • There are only four loans secured by office buildings in excess of 50,000 square feet of rentable space. These four represent $10.6 million in loans outstanding and have a 34% weighted average loan - to - value. Credit Quality RISK MANAGEMENT

28 RISK MANAGEMENT

Impacting Lives for Success and Significance

30 Leverage Ratio (Bank) Total Capital Ratio (Bank) CAPITAL *On 5/14/24, announced a plan to utilize up to $7.1 million of capital to repurchase shares of FCCO’s common stock (5.3% of total shareholders’ equity as of 3/31/24).

31 Tangible Common Equity Tangible Book Value CAPITAL

Dividend 32 CAPITAL On 7/17/24, a nnounced an increase in the cash dividend to $0.15 per common share payable 8/13/24 to shareholders of record as of 7/30/24.

Impacting Lives for Success and Significance

Financial Planning / Investment Advisory Services 34 NON - INTEREST INCOME HIGHLIGHTS

Financial Planning / Investment Advisory Services 35 Pre - tax Profit Margin 29.7% 30.5% 33.9% 31.0% 32.4% NON - INTEREST INCOME HIGHLIGHTS

36 Residential Mortgage Banking Production (millions) NON - INTEREST INCOME HIGHLIGHTS $85.6 $107.2 $135.7

Pre - tax Profit Margin 31.6% 11.9% 3.6% 34.3% 57.7% 37 $7,294.7 $ 5,327.8 $4,194.3 1 $3,763.8 1 $5,201.3 1 Note: Pre - tax net income does not include fund transfer pricing or ACL allocations. 1 Includes mortgage late charges and other mortgage revenue. NON - INTEREST INCOME HIGHLIGHTS

Impacting Lives for Success and Significance

39 (Millions) $53.1 $56.2 $60.6 $59.5 Total Revenue 1, 2 Strength in Diversity of Revenue REVENUE 1 Adjusted for PPP deferred fees. 2 Adjusted for Securities Gains/Losses. 2 1 $31.6

40 (Thousands) $15,188 $16,336 $15,226 Total Revenue 1 Strength in Diversity of Revenue 1 Adjusted for Securities Gains/Losses. 1 $15,216 REVENUE $15,261

Impacting Lives for Success and Significance

$43.1

$10.7 $11.8

Impacting Lives for Success and Significance

1 Core net income and EPS exclude gains (losses) on sale of securities and bank premises, write - downs on bank premises held - for - sa le, non - recurring BOLI income, gains on insurance proceeds, and collection of summary judgements on two loans charged off at an FCCO acquired bank. S ee non - GAAP reconciliation on pages 48 and 49. 2 Includes $738 thousand in non - recurring PPP - related fee income. 3 Includes $2.955 million in non - recurring PPP - related fee income. 4 Includes $46 thousand in non - recurring PPP - related fee income. 5 This compares to 1H23 results of $6,695 thousand in Core Net Income and $0.88 in Core EPS. 6 This compares to 1H23 results of $8,929 thousand in pre - tax pre - provision earnings. Thousands Core Net Income 1 / Core EPS 1 / Pre - Tax Pre - Provision Earnings 45 NET INCOME 2 3 2 3 4 4 5 6

FORWARD - LOOKING STATEMENTS 46

NON - GAAP FINANCIAL MEASURES The Bank Behind Your Business 47 NON - GAAP FINANCIAL MEASURES – This presentation contains certain non - GAAP financial measures that are not in accordance with US generally accepted accounting principles (GAAP) . We use certain non - GAAP financial measures to provide meaningful, supplemental information regarding our operational results and to enhance investors’ overall understanding of our financial performance . The limitations associated with non - GAAP financial measures include the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently . These disclosures should not be considered an alternative to our GAAP results . See the end of this presentation for a non - GAAP financial measures reconciliation to the most directly comparable GAAP financial measure .

NON - GAAP RECONCILIATION 48 The tables below provide a reconciliation of non - GAAP measures to GAAP for each of the periods indicated:

NON - GAAP RECONCILIATION 49 1 Excludes gains (losses) on sale of securities and bank premises, write - downs on bank premises held - for - sale, non - recurring BOLI income, gains on insurance proceeds, and collection of summary judgements on two loans charged off at an FCCO acquired bank. The tables below provide a reconciliation of non - GAAP measures to GAAP for each of the periods indicated:

Cover	Sep. 03, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Sep. 03, 2024
Entity File Number	000-28344
Entity Registrant Name	First Community Corporation
Entity Central Index Key	0000932781
Entity Tax Identification Number	57-1010751
Entity Incorporation, State or Country Code	SC
Entity Address, Address Line One	5455 Sunset Blvd
Entity Address, City or Town	Lexington
Entity Address, State or Province	SC
Entity Address, Postal Zip Code	29072
City Area Code	(803)
Local Phone Number	951-2265
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock, par value $1.00 per share
Trading Symbol	FCCO
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Information, Former Legal or Registered Name	Not Applicable

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