Financial Performance - First Community Corporation reported net income of $2.597 million for Q1 2024, with diluted earnings per share of $0.34, down from $3.463 million and $0.45 in Q1 2023[4]. - Net income for the three months ended March 31, 2024, was $2,597 thousand, down from $3,297 thousand in the previous quarter and $3,463 thousand in the same quarter last year, indicating a decline of 25% year-over-year[28]. - Return on average assets decreased to 0.56% for the three months ended March 31, 2024, compared to 0.72% in the previous quarter and 0.83% in the same quarter last year[28]. - Return on average tangible common equity (non-GAAP) decreased to 8.95% for the three months ended March 31, 2024, down from 11.93% for the same period in 2023[30]. - The company reported a decrease in pre-tax, pre-provision earnings adjustment of $859 million for the three months ended March 31, 2024[30]. Deposits and Loans - Total deposits increased to $1.578 billion, reflecting a growth of $67.1 million or 17.9% annualized compared to $1.511 billion at December 31, 2023[10]. - Customer deposit growth was $54.7 million during the quarter, representing a 15.0% annualized growth rate[5]. - Total loans increased by $23.3 million to $1.157 billion, an 8.3% annualized growth rate, driven by growth in residential and commercial loan portfolios[16]. - Total loans amounted to $1,157,305 thousand as of March 31, 2024, an increase from $1,134,019 thousand at December 31, 2023, and $992,720 thousand at March 31, 2023, showing a year-over-year growth of 16.5%[27]. - The loan to deposit ratio (including loans held-for-sale) was 73.45% as of March 31, 2024, down from 75.34% at the end of 2023[26]. Income and Expenses - Non-interest income for Q1 2024 was $3.184 million, up from $2.931 million in Q4 2023 and $2.575 million in Q1 2023[19]. - Non-interest income increased to $3,184 thousand for the three months ended March 31, 2024, up from $2,931 thousand in the previous quarter and $2,575 thousand in the same quarter last year, reflecting a growth of 23.6% year-over-year[28]. - Non-interest expense increased by $1.125 million to $11.805 million in Q1 2024 from $10.680 million in Q4 2023, driven by higher salaries and benefits, marketing expenses, and other costs[20]. - Salaries and benefits expense rose by $689 thousand, primarily due to $389 thousand in higher incentive accruals and increased payroll taxes[20]. Capital and Assets - The bank's regulatory capital ratios were above required minimums, with a Tier I Risk Based ratio of 12.65% as of March 31, 2024[6]. - The bank's tangible book value per share increased to $15.51 at March 31, 2024, up from $15.23 at December 31, 2023[7]. - Total assets increased to $1,886,991 thousand as of March 31, 2024, up from $1,827,688 thousand at the end of 2023[26]. - Average total assets increased to $1,857,716 thousand as of March 31, 2024, up from $1,809,653 thousand at December 31, 2023, and $1,695,654 thousand at March 31, 2023, representing a year-over-year growth of 9.6%[27]. - The company reported a book value per common share of $17.50 as of March 31, 2024, up from $17.23 at the end of 2023[26]. Dividends and Future Plans - Cash dividend of $0.14 per common share was declared, marking the 89th consecutive quarter of cash dividends paid[6]. - The company plans to close its banking office in Augusta, Georgia, effective June 27, 2024, with estimated annual cost savings of $327 thousand[21]. Risks and Non-GAAP Measures - The company highlighted potential risks including competitive pressures, economic conditions, and technology risks that could impact future performance[23]. - The company emphasizes that non-GAAP measures are useful for evaluating operating results but should not be considered in isolation from GAAP results[31]. - Definitions of non-GAAP measures include tangible book value per common share and pre-tax, pre-provision earnings, which are critical for financial analysis[32].
First munity (FCCO) - 2024 Q1 - Quarterly Results