First Community Third Quarter 2024 Earnings: Beats Expectations

First Community Corporation (FCCO) has reported impressive earnings results for the third quarter of 2024, surpassing analyst expectations. The holding company for First Community Bank demonstrated robust growth and strong financial performance, highlighting its commitment to community banking and strategic initiatives.

FCCO's net income for the quarter reached $3.861 million, a significant increase from $3.265 million in the second quarter of 2024 and $1.756 million in the third quarter of 2023. Diluted earnings per common share (EPS) were $0.50 for the third quarter of 2024, compared to $0.42 in the second quarter and $0.23 in the third quarter of 2023. Year-to-date, net income was $9.723 million, and diluted EPS was $1.26, reflecting a strong performance compared to the same period in 2023.

FCCO's loan portfolio growth contributed to its earnings trajectory. Total loans increased by $7.5 million during the third quarter, with an annualized growth rate of 7.4% year-to-date. This growth is a testament to the bank's ability to effectively manage its loan portfolio and maintain a low non-performing assets ratio of 0.04%. Additionally, FCCO's deposit growth played a crucial role in its earnings potential. Total deposits rose by $39.5 million in the third quarter, with pure deposits increasing by $31.0 million. This growth reflects customer loyalty and the bank's strong asset quality metrics.

FCCO's investment advisory line of business also contributed to its overall earnings growth strategy. The line of business exceeded $900 million in Assets Under Management (AUM) and produced revenue of $1.595 million in the third quarter and $4.461 million year-to-date through September 30, 2024. This revenue growth highlights the bank's ability to diversify its income streams and tap into new markets.

Regulatory capital ratios and asset quality metrics further support FCCO's future earnings prospects. The bank's regulatory capital ratios (Leverage, Tier I Risk Based, and Total Risk Based) exceeded well-capitalized minimum levels, with the Leverage ratio at 8.39%, Tier I Risk Based at 12.93%, and Total Risk Based at 14.00%. The Common Equity Tier I ratio was 12.93%, and the Tangible Common Shareholders' Equity to Tangible Assets (TCE) ratio was 6.65%. These strong capital ratios indicate FCCO's financial stability and ability to withstand economic challenges.

In conclusion, First Community Corporation's third-quarter 2024 earnings report demonstrates its resilience and strategic focus in a challenging economic environment. The company's ability to exceed analyst expectations and maintain strong financial metrics positions it well for future growth and stability. Investors should closely monitor FCCO's performance as it continues to execute its strategic initiatives and return capital to shareholders.