Today, First Community Corporation (Nasdaq:  FCCO), the holding company for First Community Bank, reported net income for the second quarter of 2022 of $3.130 million as compared to $3.543 million in the second quarter of 2021 and $3.489 million in the first quarter of 2022.  Diluted earnings per common share were $0.41 for the second quarter of 2022 as compared to $0.47 for the second quarter of 2021 and $0.46 in the first quarter of 2022.  As a note, during the second quarter of 2021, the bank recognized $611 thousand in non-recurring PPP related fee income compared to $1 thousand in the second quarter of 2022.

Year-to-date through June 30, 2022, net income was $6.619 million compared to $6.798 million during the first six months of 2021.  Diluted earnings per share for the first half of 2022 were $0.87, compared to $0.90 during the same time period in 2021.  As a note, during the first six months of 2021, the bank recognized $1.153 million in non-recurring PPP related fee income compared to $44 thousand in the first six months of 2022.    

Cash Dividend and Capital

The Board of Directors approved a cash dividend for the second quarter of 2022.  The company will pay a $0.13 per share dividend to holders of the company's common stock.  This dividend is payable August 16, 2022 to shareholders of record as of August 2, 2022.  First Community President and CEO Mike Crapps commented, "Our entire board is pleased that our performance enables the company to continue its cash dividend for the 82^nd consecutive quarter." 

As previously announced, the Company's Board of Directors has approved a share repurchase plan that provides for the repurchase of up to 375,000 shares of its common stock, which represents approximately 5% of the Company's 7,566,633 shares outstanding as of June 30, 2022.   Under the repurchase plan, the Company may repurchase shares from time to time.  No shares have been repurchased under this plan. 

Each of the regulatory capital ratios for the bank exceed the well capitalized minimum levels currently required by regulatory statute.  At June 30, 2022, the bank's regulatory capital ratios (Leverage, Tier I Risk Based and Total Risk Based) were 8.34%, 13.47%, and 14.57%, respectively.  This compares to the same ratios as of June 30, 2021 of 8.48%, 13.52%, and 14.66%, respectively. As of June 30, 2022, the bank's Common Equity Tier I ratio was 13.47% compared to 13.52% at June 30, 2021.   The Company's Tangible Common Equity to Tangible Assets ratio (TCE ratio) was 6.12% at June 30, 2022, compared to 6.71% at March 31, 2022.  This is primarily due to growth in the Company's balance sheet and an increase in the Accumulated Other Comprehensive Loss (AOCL) which has a temporary negative impact on the fair value of our investments and capital.  Excluding this, the Company's TCE ratio was 7.59% and the Tangible Book Value per share was $17.00 at June 30, 2022.  During the quarter, the Company reclassified $224.6 million in investments to Held-to-Maturity (HTM) from Available-for-Sale (AFS).  With the addition of other purchased investments during the second quarter, the HTM portfolio was $233.7 million at June 30, 2022.  The remaining AFS portfolio has a modified duration of 2.84.