Exhibit 99.1
News Release
For Release January 19, 2005
1:00 P.M.
News Release
Contact: Joseph G. Sawyer, Senior Vice President & Chief Financial Officer or
Robin D. Brown, Senior Vice President & Director of Marketing
(803) 951- 2265
First Community Corporation Announces Earnings and Cash Dividend
Lexington, S.C. January 19, 2005 – Today First Community Corporation, the holding company for First Community Bank, reported net income for the fourth quarter and year ended 2004. Net income for the quarter was $839 thousand compared to the fourth quarter of 2003 net income of $439 thousand, an increase of 91.1%. Diluted earnings per share were $.28 for the fourth quarter of 2004, an increase of 7.7% over the $.26 earnings per share in the fourth quarter of 2003. For the year ended December 31, 2004, net income was $2.185 million compared to the $1.797 million earned during the same period in 2003, an increase of 21.6%. Diluted earnings per share for 2004 were up slightly to $1.09 compared to $1.08 earned during 2003. Shareholders’ equity was $50.5 million at December 31, 2004, an increase of 159% over the $19.5 million in shareholders’ equity at December 31, 2003. Total assets were $455.7 million at December 31, 2004, an increase of 112% over December 31, 2003 assets of $215.0 million. The information during the fourth quarter of 2004 reflects the results of the merger with Dutch Fork Bancshares, the holding company of Newberry Federal Savings Bank which was consummated on October 1, 2004.
In addition to releasing fourth quarter and year-end earnings, the company also announced that the board of directors had approved a cash dividend for the fourth quarter of 2004. The company declared a $.05 per share dividend, payable February 14, 2005 to shareholders of record as of January 31, 2005.
Mike Crapps, president and chief executive officer commented on the company’s recent performance by saying, “The Company’s performance during 2004 was strong, led by significant growth in the bank’s deposit base. A major emphasis during 2004 was the merger with DutchFork Bancshares.” Crapps noted, “This release represents the first earnings report since the merger. From the time the merger was announced in April of 2004, the Company focused on planning and preparation for the merger to insure a smooth and successful transition for customers and employees. Since the merger was completed, the Company has worked diligently on the system conversion, the assimilation of personnel, and restructuring the combined investment portfolio to position the bank for a volatile interest rate environment. The repositioning of the investment portfolio consisted of transitioning to a position that will provide a significant increase in cash flow. We believe this will provide the necessary funding to fund the planned growth in the loan portfolio,” Crapps continued, “The Company has developed a “merger report card” which will assist the Company in evaluating the success of the merger in several key areas as we continue to monitor these performance metrics during 2005. This information will be valuable to the Company as we evaluate future acquisition opportunities.” Crapps continued, “In addition to the financial success First Community Corporation enjoyed in 2004, the Company launched two new free checking products for both consumer and commercial customers and announced plans to expand with an eleventh First Community Bank office scheduled to open in the Red Bank area of Lexington County in February of this year.”
First Community Corporation trades on the NASDAQ Small Cap 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 ten banking offices located in Lexington, Forest Acres, Irmo, Gilbert, Cayce — West Columbia, Chapin, Northeast Columbia, Newberry (2), and Prosperity.
Statements contained in this press release that are not historical facts are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected. Other factors that may cause actual results to differ from the forward-looking statements contained in this release and that may affect the company’s prospects in general include, but are not limited to, changes in general economic and business conditions and such other factors as are described in the company’s filings with the Securities and Exchange Commission.
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FIRST COMMUNITY CORPORATION
BALANCE SHEET DATA
(Dollars in thousands, except per share data)
| At December 31, |
|---|
| 2004
| 2003
|
|---|
| | |
|---|
| Total Assets | | | $ | 455,706 | | $ | 215,029 | |
| Investment Securities | | | | 196,026 | | | 58,954 | |
| Loans | | | | 186,771 | | | 119,304 | |
| Allowance for Loan Losses | | | | 2,764 | | | 1,705 | |
| Total Deposits | | | | 185,258 | | | 185,258 | |
| Other Borrowings | | | | 9,101 | | | 9,101 | |
| Shareholders' Equity | | | | 19,509 | | | 19,509 | |
| | | |
| Book Value Per Share | | | $ | 18.09 | | $ | 12.21 | |
| Tangible Book Value Per Share | | | $ | 8.19 | | $ | 11.74 | |
| Equity to Assets | | | | 11.1 | % | | 9.1 | % |
| Loan to Deposit Ratio | | | | 55.4 | % | | 64.4 | % |
| Allowance for Loan Losses/Loans | | | | 1.5 | % | | 1.4 | % |
| Three months ended | Year ended |
|---|
| Average Balances: | December 31, | December 31, |
|---|
| 2004
| 2003
| 2004
| 2003
|
|---|
| | | | |
|---|
| Average Total Assets | | | $ | 469,139 | | $ | 210,650 | | $ | 286,168 | | $ | 204,795 | |
| Average Loans | | | | 182,368 | | | 117,766 | | | 141,793 | | | 111,928 | |
| Average Earning Assets | | | | 405,018 | | | 195,622 | | | 257,893 | | | 190,278 | |
| Average Deposits | | | | 350,272 | | | 179,474 | | | 24,596 | | | 176,750 | |
| Average Other Borrowings | | | | 65,117 | | | 10,649 | | | 24,596 | | | 7,855 | |
| Average Shareholders' Equity | | | | 50,824 | | | 19,313 | | | 27,470 | | | 18,947 | |
| | | |
| Asset Quality | | | | | | | | | | | | | | |
| Nonperforming Assets | | | $ | 115 | | $ | 97 | | $ | 115 | | $ | 97 | |
| Net Charge-offs (recoveries) | | | $ | 164 | | $ | 211 | | $ | 181 | | $ | (13 | ) |
| Net Charge-offs to Average Loans | | | | 0.09 | % | | 0.18 | % | | 0.13 | % | | - | |
FIRST COMMUNITY CORPORATION
INCOME STATEMENT DATA
(Dollars in thousands, except per share data)
| Three Months Ended | Year Ended |
|---|
| December 31, | December 31, |
|---|
| 2004
| 2003
| 2004
| 2003
|
|---|
| | | | |
|---|
| Interest Income | | | $ | 5,035 | | $ | 2,509 | | $ | 13,044 | | $ | 10,028 | |
| Interest Expense | | | | 1,636 | | | 560 | | | 3,448 | | | 2,380 | |
|
| |
| |
| |
| |
| Net Interest Income | | | | 3,399 | | | 1,949 | | | 9,596 | | | 7,648 | |
| Provision for Loan Losses | | | | 75 | | | 35 | | | 245 | | | 167 | |
|
| |
| |
| |
| |
| Net interest income after provision | | | | 3,324 | | | 1,914 | | | 9,351 | | | 7,481 | |
|
| |
| |
| |
| |
| Non-Interest Income: | | |
| Deposit service charges | | | | 283 | | | 192 | | | 879 | | | 700 | |
| Mortgage origination fees | | | | 65 | | | 56 | | | 268 | | | 343 | |
| Securities Gains | | | | 11 | | | -- | | | 11 | | | -- | |
| Other | | | | 192 | | | 113 | | | 615 | | | 396 | |
|
| |
| |
| |
| |
| Total non-interest income | | | | 551 | | | 361 | | | 1,773 | | | 1,439 | |
|
| |
| |
| |
| |
| Non-Interest Expense: | | |
| Salaries and employee benefits | | | | 1,499 | | | 868 | | | 4,263 | | | 3,307 | |
| Occupancy | | | | 171 | | | 109 | | | 489 | | | 395 | |
| Equipment | | | | 314 | | | 242 | | | 992 | | | 803 | |
| Marketing and public relations | | | | 90 | | | 48 | | | 325 | | | 273 | |
| Amortization of intangibles | | | | 79 | | | 45 | | | 213 | | | 179 | |
| Other | | | | 617 | | | 290 | | | 1,694 | | | 1,201 | |
|
| |
| |
| |
| |
| Total non-interest expense | | | | 2,770 | | | 1,602 | | | 7,976 | | | 6,158 | |
|
| |
| |
| |
| |
| Income Before Taxes | | | | 1,105 | | | 673 | | | 3,148 | | | 2,762 | |
| Income Tax Expense | | | | 266 | | | 234 | | | 963 | | | 965 | |
|
| |
| |
| |
| |
| Net Income | | | $ | 839 | | $ | 439 | | $ | 2,185 | | $ | 1,797 | |
|
| |
| |
| |
| |
| Primary Earnings Per Share | | | $ | 0.30 | | $ | 0.28 | | $ | 1.15 | | $ | 1.13 | |
| Diluted Earnings Per Share | | | $ | 0.28 | | $ | 0.26 | | $ | 1.09 | | $ | 1.08 | |
| | | |
| Average number of shares outstanding | | | | 2,787,213 | | | 1,593,102 | | | 1,903,209 | | | 1,590,052 | |
| Return on Average Assets | | | | 0.71 | % | | 0.84 | % | | 0.76 | % | | 0.88 | % |
| Return on Average Equity | | | | 6.56 | % | | 9.12 | % | | 7.95 | % | | 9.48 | % |
| Net Interest Margin | | | | 3.33 | % | | 3.95 | % | | 3.72 | % | | 4.02 | % |
| Net Interest Margin (Tax Equivalent) | | | | 3.51 | % | | 4.02 | % | | 3.82 | % | | 4.07 | % |
Post Office Box 64/ Lexington, SC 29071
