Compare Secured Loans | First Community Corp. Reports Operating Results (10-Q)

First Community Corp. ( FCCO ) filed Quarterly Report is to time finished 2011-03-31.

First Community Corp. has a marketplace hat of $22.9 million; its shares were traded at around $7 with a P/E proportion of 19.4 and P/S proportion of 0.8. The division concede of First Community Corp. bonds is 2.3%.

Highlight of Business Operations:

· On September 27, 2010, the U.S. President sealed in to law the Small Business Jobs Act of 2010 (the “Act”). The Small Business Lending Fund (the “SBLF”), that was enacted as segment of the Act, is a $30 billion account that encourages lending to tiny businesses by providing Tier 1 funds to competent residents banks with properties of reduction than $10 billion. On December 21, 2010, the U.S. Treasury published the focus form, tenure piece and other superintendence for appearance in the SBLF. Under the conditions of the SBLF, the Treasury will buy shares of comparison elite batch from banks, bank keeping companies, and other financial institutions that will validate as Tier 1 funds for regulatory purposes and order comparison to a participating institution’s familiar stock. The focus deadline for participating in the SBLF is May 16, 2011. We are stability to weigh as to either you will experience in the SBLF.

Our net income is to 3 months finished Mar 31, 2011 was $570,000, or $0.12 widely separated gain per share, as compared to $589,000 or $0.13 widely separated gain per share, is to 3 months finished Mar 31, 2010. The slight lessen in net income between the two durations is essentially due to an enlarge of $537,000 in non-interest responsibility cancel out by descend OTTI write-downs on securities together with a auspicious satisfactory worth composition on our fascination rate barter in the initial 3 months of 2011 as compared to the same time in 2010. Average earning properties decreased by $6.7 million in the initial entertain of 2011 as compared to the same time in 2010. Average earning properties were $554.7 million during the 3 months finished Mar 31, 2010 as compared to $548.0 million during the 3 months finished Mar 31, 2011. The lessen in median earning properties was essentially a outcome of profitable down Federal Home Loan Bank (“FHLB”) advances by $3.2 million. As a outcome of the lessen in earning properties together with a 14 basement indicate lessen in the net fascination border net fascination income decreased by $253,000 in the initial 3 months of 2011 as compared to the initial 3 months of 2010.

Net fascination income was $4.5 million is to 3 months finished Mar 31, 2011 as compared to $4.7 million is to 3 months finished Mar 31, 2010. The net fascination border on a taxable homogeneous basement decreased by 16 basement points from 3.46% at Mar 31, 2010 to 3.30% at Mar 31, 2011. The concede on earning properties is to 3 months finished Mar 31, 2011 and 2010 was 4.77% and 5.23%, respectively. The cost of interest-bearing liabilities during the initial 3 months of 2011 was 1.70% as compared to 2.04% in the same time of 2010. As a outcome of the recessionary mercantile conditions in 2008 and stability in to 2011, fascination rates go on to sojourn at historically low levels. Decreased loan urge has resulted in loans comprising 60.8% of median earning properties in the initial entertain of 2011 as compared to 61.9% in the same time of 2010. The descend median loan balances together with reinvesting money flows from sappy loans and investments at fascination rates that have one after another to reject over the final year have resulted in the 46 basement indicate reject in the concede on earning properties during the two periods. Our cost of funds has declined by 34 basement indicate on median in the initial entertain of 2011 as compared to the same time of 2010. Interest-bearing contract accounts, money marketplace accounts and extra savings deposits, that are typically our descend costing funds, act for 32.7% of our median fascination temperament liabilities during the initial entertain of 2011 as compared to 27.3% in the same time of 2010. Time deposits and borrowed funds, typically the aloft costing funds, act for 67.3% of our median interest-bearing funds in the initial entertain of 2011 as compared to 72.7% during the same time in 2010. This alleviation in the on the whole blend of our appropriation sources has contributed to the reduction in our cost of funds during the initial entertain of 2011 as compared to the same time in 2010.

At Mar 31, 2011 and December 31, 2010, the stipend for loan losses was $4.7 million, or 1.39%, and $4.9 million, or 1.49%, of complete loans, respectively. Our ability for loan losses was $360 thousand is to 3 months finished Mar 31, 2011, as compared to $550 thousand is to 3 months finished Mar 31, 2010. This ability is done formed on our evaluation of broad loan loss chance and item quality. The stipend for loan losses represents an amount that you think will be adequate to take in illusive losses on existing loans that might turn uncollectible. Our visualisation as to the satisfactoriness of the stipend for loan losses is formed on a number of assumptions about future events, that you think to be reasonable, but that might or might not infer to be accurate. Our integrity of the stipend for loan losses is formed on evaluations of the collectability of loans, inclusive care of factors such as the change of marred loans, the quality, mix, and size of our on the whole loan portfolio, the experience ability and height of lending personnel, mercantile conditions (local and national) that might start the borrower’s ability to repay, the amount and high quality of material securing the loans, our chronological loan loss experience, and a examination of definite complaint loans. We moreover ponder biased problems such as changes in the lending policies and procedures, changes in the local/national economy, changes in volume or sort of credits, changes in volume/severity of complaint loans, high quality of loan examination and house of executive oversight, and concentrations of credit. Periodically, you arrange the amount of the stipend formed on varying circumstances. We assign established losses to the stipend and add successive recoveries back to the stipend for loan losses.

Non-performing properties were $13.1 million (2.16% of complete assets) at Mar 31, 2011 as compared to $13.2 million (2.19% of complete assets) at December 31, 2010. While you think these ratios are auspicious in comparison to stream attention results, you go on to be upset about the effect of this mercantile mood on our patron bottom of local businesses and professionals. There are 35 loans enclosed in non-performing position (non-accrual loans and loans past due 90 days and still accruing). The largest is for $1.1 million is secured by a initial garnishment on a created parking intricate in the midlands of South Carolina. The median change of the outstanding 33 loans is roughly $121 thousand and the most of these loans are secured by initial housing loan liens. At the time the loans are placed in non-accrual status, you typically get hold of an

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