Exhibit 99.1

 

News Release

For Release January 21, 2015

9:00 A.M.

 

 

Contact:	Joseph G. Sawyer, Executive Vice President & Chief Financial Officer or
	Robin D. Brown, Executive Vice President & Director of Marketing
	(803) 951- 2265

 

First Community Corporation Announces Annual and Fourth Quarter Results and Increased Cash Dividend

Highlights

·

2014 net income of $5.12 million, a 23.77% increase over 2013 earnings

·

EPS of $0.78 per common share

·

Increase in cash dividend to $0.07 per common share, the 52nd consecutive quarter of cash dividends paid to common shareholders

·

Total assets grew 28.27% to $812.36 million

·

Major initiatives completed during 2014 included the acquisition of Savannah River Financial Corporation, completion of a purchase and assumption transaction with First South Bank, and opening of a de novo branch in downtown Columbia, South Carolina

·

Regulatory capital ratios of 10.02% (Tier 1 Leverage) and 16.91% (Total Capital) along with Tangible Common Equity / Tangible Assets (TCE/TA) ratio of 8.48%

·

Non-performing assets (NPAs) of 1.18%

·

Cost of total deposits of 0.26%

·

Diversified revenue model shows continued strength as net-interest income and net-interest margin increased during 2014.

 

Lexington, SC – January 21, 2015 Today, First Community Corporation (Nasdaq: FCCO), the holding company for First Community Bank, reported net income available to common shareholders for the fourth quarter of 2014 of $1.51 million, an increase of 77.18% as compared to $850 thousand in the fourth quarter of 2013. Diluted earnings per common share were $0.22 for the fourth quarter of 2014 as compared to $0.16 for the fourth quarter of 2013. For the year ended December 31, 2014 net income available to common shareholders was $5.12 million compared to $4.14 million during year ended December 31, 2013. Diluted earnings per share for each year were $0.78. During 2014, the company’s assets increased 28.27% to $812.36 million. First Community President and CEO Michael Crapps commented, “We are pleased with our company’s financial results during 2014 and will continue to leverage the benefit from recent and planned growth.”

 

As previously announced, the company plans to expand its footprint with a banking office in Blythewood, South Carolina. Construction is underway at the site located at 201 Main Street, in the town of Blythewood. The office is expected to open in the Spring of 2015. In talking about First Community’s latest expansion, Mr. Crapps commented, “Blythewood is a vibrant and growing community. We look forward to working with the businesses and members of this community to help them meet their financial goals.” Crapps continued, “This new office is the latest in a series of growth for our company over the last year which included the acquisition of Savannah River Financial Corporation in Augusta, Georgia, the opening of a new banking office in downtown Columbia, and the purchase and assumption of deposits and certain loans from First South Bank’s Columbia banking office.”

 

Cash Dividend and Capital

 

The Board of Directors has approved an increase in the cash dividend for the fourth quarter of 2014 to $0.07. This dividend is payable on February 13, 2015 to shareholders of record of the company’s common stock as of February 2, 2015. Mr. Crapps commented, “Our entire board is pleased that our company’s strong financial performance enables us to increase the cash dividend. We are also proud that dividend payments have continued uninterrupted for 52 consecutive quarters.”

 

Each of the regulatory capital ratios (Leverage, Tier I Risk Based and Total Risk Based) exceeds the well capitalized minimum levels currently required by regulatory statute. At December 31, 2014, the company’s regulatory capital ratios (Leverage, Tier I Risk Based and Total Risk Based) were 10.02%, 16.09%, and 16.91%, respectively. This compares to the same ratios as of December 31, 2013 of 10.77%, 17.60%, and 18.68%, respectively. Additionally, the regulatory capital ratios for the company’s wholly owned subsidiary, First Community Bank, were 9.56%, 15.38%, and 16.20% respectively as of December 31, 2014. Further, the company’s ratio of tangible common equity to tangible assets indicates a high quality of capital with a ratio of 8.48% as of December 31, 2014.

 

 

Asset Quality

 

On a linked quarter basis, non-performing assets decreased by 3.80% to $9.53 million (1.18% of total assets) at the end of the quarter. The company believes this ratio compares very favorably with the bank’s peer group average. Trouble debt restructurings (TDRs) that are still accruing interest increased during the quarter to $2.2 million primarily due to one large non-accrual loan that was upgraded and therefore put back on accrual status. Total non-accrual loans declined 3.08% on a linked quarter basis to $6.59 million at the end of the fourth quarter, although two large loan relationships totaling $1.17 million were moved into non-accrual status. Loans past due 30-89 days declined slightly this quarter decreasing the past due ratio from .44% to .40% on a linked quarter basis. For the year of 2014, net charge-offs were $967 thousand (0.28%). Net loan charge-offs for the quarter were $202 thousand (0.18% annualized ratio). The company believes that these levels compare very favorably to its peer group average. The ratio of classified loans plus OREO now stands at 20.28% of total bank regulatory risk-based capital as of December 31, 2014.

 

Balance Sheet

 

(Numbers in millions)

 

		Quarter ending				Quarter ending				Quarter ending				12 Month				12 Month
		12/31/14				12/31/13				9/30/14				$ Variance				% Variance
Assets
Investments		$	282.8			$	227.0			$	263.9			$	55.8				24.6	%
Loans			443.8				347.6				448.6				96.2				27.7	%
Liabilities
Total Pure Deposits		$	504.5			$	363.2			$	518.7			$	141.3				38.9	%
Certificates of Deposit			165.1				133.9				168.3				31.2				23.3	%
Total Deposits		$	669.6			$	497.1			$	687.0			$	172.5				34.7	%
Customer Cash Management			17.4				18.6				17.7				(1.2	)			(6.5	%)
FHLB Advances			28.8				43.3				32.3				(14.5	)			(33.5	%)
Total Funding		$	715.8			$	559.0				736.9				156.8				28.1	%
Cost of Funds*			0.47	%			0.60	%			0.49	%							(13 bps)
(*including demand deposits)
Cost of Deposits			0.26	%			0.31	%			0.26	%							(5 bps)

 

 

Mr. Crapps commented, “Through the previously mentioned acquisitions and organic growth, momentum in pure deposit growth has continued. During 2014, pure deposits grew by $141.3 million, an increase of 38.9%. Organic growth represented $27.8 million, or 19.67% of this growth. This has positioned us to drive down our cost of deposits to 0.26 basis points at year end. Loan growth continues to be a challenge. While loans increased $96.2 million or 27.7% during 2014, this increase came primarily through the acquisitions completed during the year and on an organic basis, loans decreased by $19.0 million during the year. Loan production during the year was 33.32% higher than in 2013 with total loan production of almost $80.0 million; however, this increase was not enough to overcome the headwinds of loan payoffs and loan demand that has not rebounded to pre-recessionary levels. During the second half of 2014, loan production was 16.10% higher than in the first half of the year and we are encouraged by this positive trend. Loan growth has been and will continue to be an area of intense focus for our company. In addition to sales and marketing initiatives, we are looking at additional activities and adjustments to support increased loan volume. We believe that these results will materialize in 2015. With our current level of liquidity, we have the funding available to support significant loan growth in the year ahead.”

 

Revenue

 

Net Interest Income/Net Interest Margin

Net interest income was $6.19 million for the fourth quarter of 2014 which represents a 29.60% increase over $4.78 million in the fourth quarter of 2013. The net interest margin, on a tax equivalent basis, was 3.36% for the fourth quarter of 2014, which represents an increase from 3.29% during the fourth quarter of 2013. On a linked quarter basis, net interest margin declined 12 basis points, from 3.48% primarily due to the deposits acquired through the purchase and assumption agreement with First South Bank which were placed into investments.

 

Non-Interest Income

Non-interest income, adjusted for securities gains and losses and loss on the early extinguishment of debt, increased by 20.09% year-over-year to $2.34 million in the fourth quarter of 2014. During the quarter, the company repaid $3.50 million in Federal Home Loan Bank (FHLB) advances and experienced a $284 thousand loss on this early extinguishment of debt. This prepayment of the FHLB advances will enable the bank to save the expense of these borrowings in future periods. This loss was partially offset by a gain on the sale of securities of $80.0 thousand.

 

Production in the mortgage line of business was $24.7 million in the quarter, an increase of 6.93% as compared to the same period in 2013. This increased production resulted in mortgage fee revenue of $849 thousand, 6.19% higher than fourth quarter of 2013. During the year of 2014, the mortgage line of business benefitted from an increase in yields which grew to 3.51% in 2014 up significantly from 3.15% in 2013. Mr. Crapps noted, “Purchase transactions continue to represent the majority of the mortgage production, though that percentage trended down some during the fourth quarter.”

 

It is also significant to note the revenue earned this year in the financial planning and investment advisory line of business. Led by a strong fourth quarter with revenues of $546 thousand, this line of business generated revenues of $1.27 million for the year, an increase of 30.45% over 2013. Mr. Crapps commented, “This line of business experienced good revenue growth in 2014. While there were some large pieces of business that contributed to this success, we also continue to grow recurring income streams that will be a benefit during future periods.”

 

Non-Interest Expense

 

Non-interest expenses for the quarter were fairly stable increasing just 0.48% on a linked quarter basis. Salaries and benefits, the largest of the expense categories, increased $43 thousand or 1.23% during the quarter. The largest increases quarter to quarter were other real estate expense which increased $88 thousand or 83.81% related to taxes on two properties and the amortization of intangibles which increased $47 thousand or 73.44% due to the additional intangible assets acquired in the First South purchase and assumption transaction.

 

Other Matters

 

During its most recent regulatory examination of the bank’s compliance with the Bank Secrecy Act and anti-money laundering laws and regulations (collectively referred to as the “BSA”), the bank’s primary federal regulator, the Federal Deposit Insurance Corporation (the “FDIC”), identified certain matters that it deemed to be weaknesses in the bank’s compliance with the BSA. As a result, the FDIC requested that the bank address certain BSA-related matters by entering into a proposed Consent Order (the “Proposed Order”). The Proposed Order would require the bank to enhance its BSA compliance program. The bank is engaged in cooperative discussions with the FDIC regarding the terms of the Proposed Order, which, when finalized, will set forth the specific actions required to address the matters raised by the FDIC. The final Consent Order will be filed by the company with the SEC once it has been finalized and entered into between the bank and the FDIC.

 

While the bank recognizes that certain technical aspects of its BSA compliance activities were affected by a temporary period of significant turnover in the bank’s BSA staff, management believes that the bank recognized and addressed substantially all of these issues prior to the completion of the FDIC’s regulatory examination. The bank believes that it is in compliance with substantially all of the requirements that are expected to be addressed in the final Consent Order, and the bank has already expanded its BSA compliance staff in an effort to ensure future compliance with the BSA. The bank does not anticipate any additional staffing needs beyond those already in place and does not anticipate any material additional expenses associated with the final Consent Order. Mr. Crapps commented, “Since the inception of our bank, we have demonstrated a commitment to regulatory compliance and a sound BSA compliance program resulting in 19 years of sound BSA performance. Compliance has been and continues to be a focus of our organization. While there were some temporary technical issues and the BSA program did not operate at a level that met the expectations of our bank and our regulators, we are confident that the actions taken will demonstrate our commitment to operating a sound BSA compliance program and lead to timely resolution of this matter. It is important to note that this issue will not affect the bank's day-to-day operations or our customers.”

 

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 fourteen banking offices located in the Midlands of South Carolina as well as addition to First Community Financial Consultants, a financial planning/investment advisory division and Palmetto South Mortgage, a separate mortgage 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; (7) we may be unable to comply, or may need to devote more resources than currently expected in order to comply, with the requirements that will be set forth in our final BSA-related Consent Order with the FDIC, and (8) 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 December 31,
		2014				2013
Total Assets		$	812,363			$	633,309
Other short-term investments (1)			10,052				5,927
Investment Securities			282,814				227,030
Loans held for sale			4,124				3,790
Loans			443,844				347,597
Allowance for Loan Losses			4,132				4,219
Total Deposits			669,583				497,071
Securities Sold Under Agreements to Repurchase			17,383				18,634
Federal Home Loan Bank Advances			28,807				43,325
Junior Subordinated Debt			15,464				15,464
Shareholders' Equity			74,528				52,671
Book Value Per Common Share		$	11.18			$	9.93
Tangible Book Value Per Common Share		$	10.25			$	9.83
Tangible Book Value Per Common Share (Excluding AOCI)		$	10.06			$	10.30
Equity to Assets			9.17	%			8.32	%
Tangible common equity to tangible assets			8.48	%			8.23	%
Loan to Deposit Ratio			66.90	%			70.69	%
Allowance for Loan Losses/Loans			0.93	%			1.21	%
Allowance for Loan Losses plus credit mark/Loans			1.33	%			1.21	%
Regulatory Ratios:
Leverage Ratio			10.02	%			10.77	%
Tier 1 Capital Ratio			16.09	%			17.60	%
Total Capital Ratio			16.91	%			18.68	%
Tier 1 Regulatory Capital		$	81,431			$	68,756
Total Regulatory Capital		$	85,563			$	72,975

 

(1) Includes federal funds sold, securities purchased under agreements to resell and interest-bearing deposits

 

Average Balances:

 

				Three months ended								Year ended
				December 31,								December 31,
				2014				2013				2014				2013
	Average Total Assets			$	820,861			$	637,139			$	780,797			$	625,802
	Average Loans				451,334				349,830				439,174				344,110
	Average Earning Assets				751,935				591,362				714,332				581,299
	Average Deposits				676,415				508,292				635,238				497,521
	Average Other Borrowings				64,540				69,686				51,871				69,022
	Average Shareholders' Equity				73,523				53,339				69,760				53,837

 

 

Asset Quality:		December 31,				September 30,				June 30,				March 31,				December 31,
		2014				2014				2014				2014				2013
Loan Risk Rating by Category (End of Period)
Special Mention		$	13,818			$	13,039			$	11,274			$	13,891			$	10,708
Substandard			13,500				15,730				15,795				15,358				10,609
Doubtful			—				—				—				—				—
Pass (includes held for sale)			416,526				419,787				417,601				414,619				326,280
		$	443,844			$	448,556			$	444,670			$	443,868			$	347,597
Nonperforming Assets:
Non-accrual loans		$	6,585			$	6,795			$	7,647			$	7,865			$	5,406
Other real estate owned			2,943				3,014				3,302				3,147				3,370
Accruing loans past due 90 days or more			—				95				160				125				1
Total nonperforming assets		$	9,528			$	9,904			$	11,109			$	11,137			$	8,777
Accruing trouble debt restructurings		$	2,200			$	551			$	560			$	568			$	576

 

 

		Three months ended								Year ended
		December 31,								December 31,
		2014				2013				2014				2013
Loans charged-off:		$	273			$	271			$	1,069			$	1,048
Overdrafts charged-off			13				10				42				42
Loan recoveries			(84	)			(24	)			(133	)			(146	)
Overdraft recoveries			—				(4	)			(11	)			(12	)
Net Charge-offs		$	202			$	253			$	967			$	932
Net charge-offs to average loans			0.04	%			0.07	%			0.28	%			0.27	%

 

FIRST COMMUNITY CORPORATION

 

INCOME STATEMENT DATA

(Dollars in thousands, except per share data)

 

		Three months ended								Three months ended								Three months ended								Three months ended								Year ended
		December 31,								September 30,								June 30,								March 31,								December 31,
		2014				2013				2014				2013				2014				2013				2014				2013				2014				2013
Interest Income		$	7,078			$	5,656			$	6,968			$	5,474			$	6,849			$	5,370			$	6,403			$	5,283			$	27,298			$	21,783
Interest Expense			887				879				872				904				902				947				907				1,004				3,568				3,734
Net Interest Income			6,191				4,777				6,096				4,570				5,947				4,423				5,496				4,279				23,730				18,049
Provision for Loan Losses			178				149				152				129				400				100				150				150				880				528
Net Interest Income After Provision			6,013				4,628				5,944				4,441				5,547				4,323				5,346				4,129				22,850				17,521
Non-interest Income:
Deposit service charges			372				392				400				387				379				367				366				361				1,517				1,507
Mortgage banking income			849				799				1,016				770				702				1,183				619				1,015				3,186				3,767
Investment advisory fees and non-deposit commissions			546				277				267				279				198				218				257				198				1,268				972
Gain (loss) on sale of securities			80				(79	)			16				4				78				133				8				15				182				73
Gain (loss) on sale other assets			(9	)			(8	)			10				(23	)			(24	)			32				12				(2	)			(11	)			(1	)
Fair value gain (loss) adjustment			—				—				—				—				—				(2	)							—				—				(2	)
Loss on early extinguishment of debt			(284	)			—				—				—				(67	)			(141	)			—				—				(351	)			(142	)
Other			585				491				591				524				633				505				613				496				2,422				2,017
Total non-interest income			2,139				1,872				2,300				1,941				1,899				2,295				1,875				2,083				8,213				8,191
Non-interest Expense:
Salaries and employee benefits			3,545				3,079				3,502				2,948				3,272				2,994				3,424				2,992				13,743				12,013
Occupancy			515				361				489				343				465				334				413				346				1,882				1,384
Equipment			377				299				414				310				375				314				339				283				1,505				1,206
Marketing and public relations			147				230				218				106				212				112				161				93				738				541
FDIC assessment			128				108				138				108				131				102				124				99				521				417
Other real estate expense			193				113				105				189				117				115				138				112				553				508
Amortization of intangibles			111				32				64				32				63				45				42				51				280				160
Merger expenses			29				506				39				33				15				—				420				—				503				539
Other			1,044				975				1,091				888				1,135				939				965				831				4,235				3,654
Total non-interest expense			6,089				5,703				6,060				4,957				5,785				4,955				6,026				4,807				23,960				20,422
Income before taxes			2,063				797				2,184				1,425				1,661				1,663				1,195				1,405				7,103				5,290
Income tax expense (benefit)			557				(53	)			632				379				460				460				333				367				1,982				1,153
Net Income		$	1,506			$	850			$	1,552			$	1,046			$	1,201			$	1,203			$	862			$	1,038			$	5,121			$	4,137
Per share data:
Net income, basic		$	0.23			$	0.16			$	0.23			$	0.20			$	0.18			$	0.23			$	0.14			$	0.20			$	0.78			$	0.78
Net income, diluted		$	0.22			$	0.16			$	0.23			$	0.20			$	0.18			$	0.23			$	0.14			$	0.20			$	0.78			$	0.78
Average number of shares outstanding - basic			6,662,514				5,298,841				6,658,679				5,294,736				6,654,359				5,292,828				6,168,949				5,255,525				6,537,813				5,285,377
Average number of shares outstanding - diluted			6,733,513				5,354,373				6,726,849				5,308,546				6,719,110				5,311,194				6,228,512				5,292,000				6,607,079				5,334,319
Shares outstanding period end			6,664,391				5,302,674				6,660,466				5,296,288				6,656,139				5,293,116				6,652,189				5,290,452				6,664,391				5,302,674
Return on average assets			0.73	%			0.53	%			0.79	%			0.66	%			0.61	%			0.77	%			0.48	%			0.69	%			0.73	%			0.66	%
Return on average common equity			8.13	%			6.32	%			8.61	%			7.93	%			6.88	%			8.75	%			5.49	%			7.72	%			8.13	%			7.68	%
Return on average common tangible equity			8.88	%			6.39	%			9.32	%			8.02	%			7.54	%			8.88	%			5.89	%			7.82	%			8.88	%			7.78	%
Net Interest Margin (non taxable equivalent)			3.27	%			3.20	%			3.40	%			3.10	%			3.32	%			3.03	%			3.32	%			3.09	%			3.32	%			3.10	%
Net Interest Margin (taxable equivalent)			3.36	%			3.29	%			3.48	%			3.18	%			3.38	%			3.11	%			3.40	%			3.15	%			3.40	%			3.18	%

 

FIRST COMMUNITY CORPORATION

Yields on Average Earning Assets and Rates

on Average Interest-Bearing Liabilities

 

		Three Months ended December 31, 2014												Three Months ended December 31, 2013
		Average				Interest				Yield/				Average				Interest				Yield/
		Balance				Earned/Paid				Rate				Balance				Earned/Paid				Rate
Assets
Earning assets
Loans		$	451,334			$	5,638				4.96	%		$	349,830			$	4,379				4.97	%
Securities:			276,625				1,408				2.02	%			228,988				1,260				2.18	%
Other funds			23,976				32				0.53	%			12,544				17				0.54	%
Total earning assets			751,935				7,078				3.73	%			591,362				5,656				3.79	%
Cash and due from banks			10,533												8,263
Premises and equipment			29,619												18,380
Intangible assets			6,255												587
Other assets			26,779												22,870
Allowance for loan losses			(4,260	)											(4,323	)
Total assets		$	820,861											$	637,139
Liabilities
Interest-bearing liabilities
Interest-bearing transaction accounts			135,492				40				0.12	%			102,087				26				0.10	%
Money market accounts			151,382				97				0.25	%			80,094				44				0.22	%
Savings deposits			53,893				16				0.12	%			51,638				15				0.12	%
Time deposits			197,385				285				0.57	%			162,489				313				0.76	%
Other borrowings			64,540				449				2.76	%			69,686				481				2.74	%
Total interest-bearing liabilities			602,692				887				0.58	%			465,994				879				0.75	%
Demand deposits			138,263												111,984
Other liabilities			6,383												5,822
Shareholders' equity			73,523												53,339
Total liabilities and shareholders' equity		$	820,861											$	637,139
Cost of funds including demand deposits											0.47	%											0.60	%
Net interest spread											3.15	%											3.05	%
Net interest income/margin						$	6,191				3.27	%						$	4,777				3.20	%
Tax equivalent						$	6,360				3.36	%						$	4,911				3.29	%

 

FIRST COMMUNITY CORPORATION

Yields on Average Earning Assets and Rates

on Average Interest-Bearing Liabilities

 

		Year ended December 31, 2014												Year ended December 31, 2013
		Average				Interest				Yield/				Average				Interest				Yield/
		Balance				Earned/Paid				Rate				Balance				Earned/Paid				Rate
Assets
Earning assets
Loans		$	439,174			$	21,915				4.99	%		$	344,110			$	17,581				5.11	%
Securities:			256,392				5,277				2.06	%			223,540				4,136				1.85	%
Other funds			18,766				106				0.56	%			13,649				66				0.48	%
Total earning assets			714,332				27,298				3.82	%			581,299				21,783				3.75	%
Cash and due from banks			10,344												8,546
Premises and equipment			28,098												17,509
Intangible assets			5,554												641
Other assets			26,623												22,290
Allowance for loan losses			(4,154	)											(4,483	)
Total assets		$	780,797											$	625,802
Liabilities
Interest-bearing liabilities
Interest-bearing transaction accounts			131,767				167				0.13	%			100,808				111				0.11	%
Money market accounts			141,020				336				0.24	%			74,514				171				0.23	%
Savings deposits			51,768				60				0.12	%			47,296				53				0.11	%
Time deposits			179,384				1,147				0.64	%			171,436				1,458				0.85	%
Other borrowings			70,083				1,858				2.65	%			69,022				1,941				2.81	%
Total interest-bearing liabilities			574,022				3,568				0.62	%			463,076				3,734				0.81	%
Demand deposits			131,299												103,467
Other liabilities			5,716												5,422
Shareholders' equity			69,760												53,837
Total liabilities and shareholders' equity		$	780,797											$	625,802
Cost of funds including demand deposits											0.51	%											0.66	%
Net interest spread											3.20	%											2.94	%
Net interest income/margin						$	23,730				3.32	%						$	18,049				3.10	%
Tax Equivalent						$	24,287				3.40	%						$	18,512				3.18	%