First Community Corporation Reports $13.955 Million Net Income for 2024

First Community Corporation (FCCO), a South Carolina-based bank holding company, reported net income of $13.955 million for the year ended December 31, 2024, a $2.1 million increase compared to the $11.843 million reported in 2023. This increase stemmed primarily from a $3.1 million rise in net interest income, a $320,000 decrease in the provision for credit losses, and a $3.6 million increase in non-interest income. These gains were partially offset by a $4.3 million increase in non-interest expenses and a $618,000 rise in income tax expense. The company's diluted earnings per common share were $1.81 in 2024, up from $1.55 in 2023.

The increase in net interest income resulted from a 9.5% increase in average earning assets to $1.8 billion, partially offset by a nine basis point decline in the net interest margin. The provision for credit losses decreased due to an increase in loans held for investment, offset by a decrease in unfunded commitments and a reduction in qualitative factors. Non-interest income increased due to higher mortgage banking income, investment advisory fees, and a decrease in losses on the sale of securities. Non-interest expenses rose primarily due to increased salaries and employee benefits, FDIC insurance assessments, and other expenses.

Significant changes compared to 2022 include a decrease in net income from $14.613 million to $11.843 million in 2023, primarily due to a decline in non-interest income, an increase in non-interest expenses, and a rise in the provision for credit losses. Net interest income increased slightly in 2023 due to higher average earning assets, but this was offset by a decline in the net interest margin. The company noted that the 2023 loss on the sale of securities was related to a strategic sale of U.S. Treasuries to improve liquidity and net interest margin. The company also highlighted the impact of the Pay-Fixed Swap Agreement, which positively impacted interest on loans in both 2024 and 2023.

As of December 31, 2024, First Community Corporation had approximately $1.958 billion in assets, $1.221 billion in loans, $1.676 billion in deposits, and $144.5 million in shareholders' equity. The company operates 21 full-service offices across South Carolina and Georgia, serving small-to-medium sized businesses and individuals. The company's employee count was 260 full-time, 10 part-time, and 8 seasonal/on-call employees at the end of 2024. The company's stock trades on the NASDAQ Capital Market under the symbol FCCO. The filing included extensive disclosures regarding risk factors, regulatory compliance, and accounting policies, including the adoption of CECL in 2023. The company stated that it intends to continue paying quarterly cash dividends, subject to board approval and regulatory constraints.