News Release
	For Release October 21, 2015
	9:00 A.M.
	Contact: (803) 951- 2265
	Joseph G. Sawyer, EVP & Chief Financial Officer or
	Robin D. Brown, EVP & Director of Marketing

First Community Corporation Announces Third Quarter Results and Cash Dividend

Highlights

Lexington, SC – October 21, 2015 Today, First Community Corporation (Nasdaq: FCCO), the holding company for First Community Bank, reported net income for the third quarter of 2015. On a linked quarter basis, net income increased 16.4% to $1.679 million in the third quarter of the year as compared to $1.443 million in the second quarter of 2015. Diluted earnings per common share increased to $0.25 for the third quarter of 2015 as compared to $0.22 for the second quarter of 2015. Year-to-date 2015 net income was $4.526 million, a 25.2% increase over the $3.615 million earned in the first nine months of 2014. Year-to-date diluted earnings per share were $0.68 compared to $0.55 during the same time period in 2014.

Cash Dividend and Capital

The Board of Directors has approved a cash dividend for the third quarter of 2015. The company will pay a $0.07 per share dividend to holders of the company’s common stock. This dividend is payable November 13, 2015 to shareholders of record as of November 2, 2015. Mr. Crapps commented, “Our entire board is pleased that our performance enables the company to continue its cash dividend for the 55^th 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, 2015, the company’s regulatory capital ratios (Leverage, Tier I Risk Based and Total Risk Based) were 10.34%, 15.67%, and 16.48%, respectively. This compares to the same ratios as of September 30, 2014, of 10.33%, 15.78%, and 16.61%, respectively. Additionally, the regulatory capital ratios for the company’s wholly owned subsidiary, First Community Bank, were 9.83%, 14.92%, and 15.74% respectively as of September 30, 2015. Further, the company’s ratio of tangible common equity to tangible assets was 8.50% as of September 30, 2015.

Asset Quality

The non-performing assets ratio declined to 0.88% of total assets, as compared to the prior quarter ratio of 0.94%. The nominal level of non-performing assets decreased to $7.519 million from $7.872 million at the end of the prior quarter, a 4.5% decrease. Trouble debt restructurings, that are still accruing interest, declined slightly during the quarter to $1.654 million from $1.674 million at the end of the second quarter of 2015.

Net loan charge-offs for the quarter were $6 thousand (less than 0.01%) and for the first nine months of 2015 were $654 thousand (0.17%). The ratio of classified loans plus OREO now stands at 14.76% of total bank regulatory risk-based capital as of September 30, 2015.

Balance Sheet

(Numbers in millions)

Mr. Crapps commented, “This was another quarter of strong performance by our company led by continued growth in loans and pure deposits. We continue to see the benefit of focused efforts in these key areas.”

Revenue

Net Interest Income/Net Interest Margin

Net interest income increased on a linked quarter basis to $6.3 million for the third quarter up from $6.2 million in the second quarter of 2015. The net interest margin, on a taxable equivalent basis, decreased slightly to 3.32% for the third quarter from 3.34% in the second quarter of the year.

Non-Interest Income

Non-interest income, adjusted for securities gains and losses, decreased 2.9% on a linked quarter basis to $2.329 million in the third quarter of 2015, down from $2.398 million in the second quarter of this year. Revenues in the mortgage line of business were relatively flat on a linked quarter basis at $964 thousand in the third quarter of 2015. Production levels remained constant on a linked quarter basis at approximately $30 million in total loan volume. Yields for the third quarter decreased slightly from the second quarter average of 3.27% to 3.20% in the third quarter. The investment advisory line of business saw a decrease in revenue in the third quarter from $407 thousand in the second quarter of 2015 to $290 in the third quarter. Deposit fees generated in the commercial and retail banking line of business increased $44 thousand (12.7%) during the quarter. Mr. Crapps commented, “Our strategy of generating revenue streams from multiple lines of business continues to serve us well. As anticipated, our mortgage line of business experienced another good quarter on par with the results of the second quarter. Our financial planning line of business also had a good quarter, although it was down from the second quarter production which included one major piece of business.”

Non-Interest Expense

Non-interest expense decreased significantly by $322 thousand (5.0%) on a linked quarter basis. This is primarily attributable to a decrease in compensation and benefit expense and marketing costs. Marketing expenses were higher in the first part of the year due to the creative and production costs associated with the development of the marketing initiatives along with higher media costs to support the strategy of an early and heavy media presence targeted to assist with the bank’s commercial loan growth. 

Other

In early October, the State of South Carolina experienced an historic weather event. The Midlands area of the state was particularly hard hit by the devastating flooding that occurred. Mr. Crapps commented, “Our thoughts and prayers are with those who have been directly impacted by these storms. It has been heartwarming to see the response of our friends and neighbors as we work to help those in need. Led by a strong response from our local government and business leaders, the process of rebuilding the affected areas has already begun. Our bank experienced damage in only one of our banking offices and our operations were not significantly impacted. Our focus has been on our customers who were affected and we are in the process of helping them as they move forward. Fortunately, the initial assessment of our larger relationships has resulted in identifying only minimal impact to the bank’s credit portfolio. We are now broadening the scope of our assessment to evaluate the potential impact to other clients.” 

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 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.

###