LEXINGTON, S.C., Jan. 18, 2017 /PRNewswire/ --
Highlights
-- Record Yearly and Quarterly Earnings for the company
-- Net income of $6.7 million in 2016, a 9.1% increase over 2015 earnings,
highest ever annual earnings reported for the company
-- Net income of $1.8 million in the Q4 2016, an 11.9% increase over 2015
Q4 earnings, highest ever quarterly earnings reported for the company
-- Diluted EPS of $0.98 per common share in 2016, an increase of 7.7% over
2015
-- Increase in cash dividend to $0.09 per common share, the 60(th)
consecutive quarter of cash dividends paid to common shareholders,
highest dividend ever paid by the company
-- Total revenue growth of $1.2 million, a 3.5% increase to $35.4 million
in total revenue in 2016
-- Exceptional loan growth of $57.5 million in 2016, an increase of 11.8%
-- Strong pure deposit growth (including customer cash management accounts)
of $47.2 million during the year, an 8.1% increase.
-- Key credit quality metrics continue to be excellent with net loan
charge-offs of 0.02% and non-performing assets of 0.58% at year end.
-- Regulatory capital ratios of 10.23% (Tier 1 Leverage) and 15.28% (Total
Capital) along with Tangible Common Equity / Tangible Assets (TCE/TA)
ratio of 8.33%
Today, First Community Corporation (Nasdaq: FCCO), the holding company for First Community Bank, reported net income available to common shareholders for the fourth quarter and year end of 2016. For the year ended December 31, 2016 net income available to common shareholders was $6.7 million compared to $6.1 million during year ended December 31, 2015, an increase of 9.8%. Diluted earnings per share for 2016 were $0.98 an increase of 7.7% over $0.91 in 2015. Net income available to common shareholders for the fourth quarter of 2016 was $1.8 million, compared to $1.6 million in the fourth quarter of 2015. Diluted earnings per common share were $0.26 for the fourth quarter of 2016 an increase of 8.3% year-over-year and 4.0% on a linked quarter basis.
First Community President and CEO Michael Crapps commented, "We are extremely pleased with our company's financial results during 2016 led by very strong organic growth in both loans and pure deposits."
Cash Dividend and Capital
The Board of Directors has approved an increase in the cash dividend for the fourth quarter of 2016 to $0.09. This dividend is payable on February 13, 2017 to shareholders of record of the company's common stock as of January 30, 2017. Mr. Crapps commented, "The entire board is pleased that our company's strong financial performance enables us to increase the cash dividend to the highest level ever paid by the company. We are also proud that dividend payments have continued uninterrupted for 60 consecutive quarters."
Each of the regulatory capital ratios (Leverage, Tier I Risk Based and Total Risk Based) exceeds the well capitalized minimum levels currently required by regulatory statute. At December 31, 2016, the company's regulatory capital ratios (Leverage, Tier I Risk Based and Total Risk Based) were 10.23%, 14.46%, and 15.28%, respectively. This compares to the same ratios as of December 31, 2015 of 10.19%, 15.40%, and 16.21%, respectively. Additionally, the regulatory capital ratios for the company's wholly owned subsidiary, First Community Bank, were 9.77%, 13.83%, and 14.65% respectively as of December 31, 2016. Further, the company's ratio of tangible common equity to tangible assets indicates a high quality of capital with a ratio of 8.33% as of December 31, 2016. The common equity tier one ratio for the company and the bank was 12.18% and 13.83%, respectively, at December 31, 2016.
Asset Quality
The company's asset quality remains strong and showed continued improvement on a linked quarter and year-over-year comparison. The non-performing assets ratio remained relatively flat on a linked quarter basis at 0.58% of total assets at December 31, 2016, as compared to the ratio of 0.57% at the end of the third quarter of 2016 and down significantly from 0.85% at December 31, 2015. The nominal level of non-performing assets was $5.25 million at year end 2016 up slightly from $5.20 million at the end of the third quarter of 2016 and down significantly from $7.3 million at the end of 2015. The past due ratio for all loans was 0.35% at year-end 2016 down from 0.53% at the end of third quarter 2016. The $1.7 million increase in loans in the Special Mention Category is primarily attributable to a line of credit that was advanced during the quarter. Trouble debt restructurings, that are still accruing interest, declined slightly during the quarter to $1.77 million from $1.82 million at the end of the third quarter of 2016 and $1.63 million at year end 2015.
Net loan charge-offs for the fourth quarter were $37 thousand and $109 thousand for the year of 2016. The ratio of classified loans plus OREO now stands at 9.77% of total bank regulatory risk-based capital as of December 31, 2016.
Balance Sheet
-------------
(Numbers in millions)
Quarter ending Quarter ending Quarter ending 12 Month 12 Month
12/31/16 12/31/15 9/30/16 $ Variance % Variance
-------- -------- ------- ---------- ----------
Assets
------
Investments $272.4 $283.8 $288.2 ($11.4) ( 4.0%)
Loans 546.7 489.2 523.4 57.5 11.8%
Liabilities
Total Pure Deposits $611.9 $563.1 $606.5 $48.8 8.7%
Certificates of Deposit 154.7 153.0 159.4 1.7 1.1%
----- ----- ----- --- ---
Total Deposits $766.6 $716.1 $765.9 $50.5 7.1%
Customer Cash Management 19.5 21.0 22.2 (1.5) (7.1%)
FHLB Advances 24.0 24.8 21.0 (0.8) (3.2%)
Total Funding $810.1 $761.9 809.1 48.2 6.3%
Cost of Funds* 0.35% 0.44% 0.37%
(9 bps)
(*including demand deposits)
Cost of Deposits 0.24% 0.25% 0.25%
(1 bp)
Mr. Crapps commented, "Deposit and loan growth during 2016 were both strong and we are encouraged as that momentum continues into 2017. During 2016, our company saw the benefit of a number of previously discussed initiatives focused on increasing loan growth, including the addition of a loan production office in the Greenville market, resulting in loan production of $164.6 million and net loan growth of $57.5 million. The fourth quarter was exceptional with net loan growth of $23.3 million, which is an annualized growth rate of 17.8%. This loan growth is especially impressive given our commitment to credit quality. With our current level of liquidity and continued success in pure deposit growth, we have the funding available to support significant additional loan growth."
Revenue
Net Interest Income/Net Interest Margin
Net interest income increased on a linked quarter basis to $6.8 million for the fourth quarter up from $6.7 million in the third quarter of 2016 and year-over-year increased 4.7% to $26.5 million at December 31, 2016 from $25.3 million at December 31, 2015. The net interest margin, on a taxable equivalent basis, increased to 3.35% for the fourth quarter of 2016 from 3.29% in the third quarter of the year.
Non-Interest Income
Non-interest income for the year, adjusted for securities gains and loss on the early extinguishment of debt, was down slightly year-over-year at $8.8 million in 2016 compared to $8.9 million in 2015. Fourth quarter non-interest income was $2.2 million, up year-over-year from $2.1 million in the fourth quarter of 2015, but down on a linked quarter basis from $2.4 million in the third quarter.
Revenues in the mortgage line of business were relatively flat year-over-year at $3.4 million in 2016 and on a linked quarter basis declined as anticipated due to seasonal factors from $937.3 thousand in the third quarter to $866.5 thousand in the fourth quarter of 2016. Mortgage production year-over-year decreased $8.9 million or 7.9%, but a 22 basis point improvement in yields help offset this decline to keep revenue stable. Revenue in the investment advisory line of business was down year-over-year at $1.1 million in 2016 compared to $1.3 million in 2015, and was down slightly on a linked quarter basis at $239 thousand in the fourth quarter of 2016 compared to $249 thousand in the third quarter. Mr. Crapps noted, "Our strategy of generating revenue streams from multiple lines of business continues to serve us well and we are focused on continuing to leverage each of our lines of business."
Non-Interest Expense
Non-interest expenses were $6.518 million in the fourth quarter, relatively flat on a linked quarter basis.
Other
The effective tax rate for the fourth quarter of 2016 was lower than the prior quarter due to a $200 thousand South Carolina income tax credit related to an investment in a South Carolina Community Development program. The effective tax rate for the quarter would have been approximately 26% without this tax credit.
The company recently began work on the conversion to a new core system processor, moving from an in-house solution to an out-sourced environment. This move will be mostly transparent to customers and will position the company well for future growth by providing the technological support needed to provide competitive and innovative bank technology-based products and services. The company has committed significant administrative resources to this project which is expected to be completed in several phases during the year.
First Community Corporation stock trades on the NASDAQ Capital 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 fifteen banking offices located in Lexington, Richland, Newberry, Kershaw, and Aiken counties in South Carolina and Augusta, Georgia, a loan production office in Greenville, South Carolina, in addition to two other lines of business, First Community Bank Mortgage and First Community Financial Consultants, a financial planning/investment advisory division.
FORWARD-LOOKING STATEMENTS
Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans, goals, projections and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors, include, among others, the following: (1) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (2) the strength of the United States economy in general and the strength of the local economies in which we conduct operations may be different than expected resulting in, among other things, a deterioration in the credit quality or a reduced demand for credit, including the resultant effect on the company's loan portfolio and allowance for loan losses; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for loan loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (4) changes in the U.S. legal and regulatory framework; (5) adverse conditions in the stock market, the public debt markets and other capital markets (including changes in interest rate conditions) could have a negative impact on the company; (6) technology and cybersercurity risks, including potential business disruptions, reputational risks, and financial losses, associated with potential attacks on or failures by our computer systems and computer systems of our vendors and other third parties; and (7) risks, uncertainties and other factors disclosed in our most recent Annual Report on Form 10-K filed with the SEC, or in any of our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K filed with the SEC since the end of the fiscal year covered by our most recently filed Annual Report on Form 10-K, which are available at the SEC's Internet site (http://www.sec.gov).
Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. We can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
FIRST COMMUNITY CORPORATION
BALANCE SHEET DATA;
(Dollars in thousands, except per share data)
At December 31,
2016 2015
---- ----
Total Assets $914,793 $862,734
Other short-term investments (1) 10,074 11,968
Investment Securities 272,396 283,841
Loans held for sale 5,707 2,962
Loans 546,709 489,191
Allowance for Loan Losses 5,214 4,596
Total Deposits 766,622 716,151
Securities Sold Under Agreements to Repurchase 19,527 21,033
Federal Home Loan Bank Advances 24,035 24,788
Junior Subordinated Debt 14,964 14,964
Shareholders' Equity 81,861 79,038
Book Value Per Common Share $12.20 $11.81
Tangible Book Value Per Common Share $11.28 $10.84
Equity to Assets 8.95% 9.16%
Tangible common equity to tangible assets 8.33% 8.47%
Loan (incl loans held for sale) to Deposit Ratio 72.06% 68.72%
Allowance for Loan Losses/Loans 0.95% 0.94%
Allowance for Loan Losses plus credit mark/Loans 1.01% 1.15%
Regulatory Ratios:
Leverage Ratio 10.23% 10.19%
Tier 1 Capital Ratio 14.46% 15.40%
Total Capital Ratio 15.28% 16.21%
Common Equity Tier 1 12.18% 12.87%
Tier 1 Regulatory Capital $91,973 $86,682
Total Regulatory Capital $97,187 $91,278
Common Equity Tier 1 Capital $77,473 $72,444
(1) Includes federal funds sold, securities purchased under agreements to resell and interest-bearing deposits
Average Balances:
Three months ended Year ended
December 31, December 31,
2016 2015 2016 2015
---- ---- ---- ----
Average Total Assets $905,882 $858,413 $888,240 $835,604
Average Loans (incl loans held for sale) 536,925 487,203 514,766 473,367
Average Earning Assets 832,192 790,288 815,863 769,604
Average Deposits 760,512 708,583 739,355 688,573
Average Other Borrowings 54,709 64,639 59,569 64,072
Average Shareholders' Equity 83,518 78,797 82,653 77,124
Asset Quality: December 31, September 30, June 30, March 31, December 31,
2016 2016 2016 2016 2015
---- ---- ---- ---- ----
Loan Risk Rating by Category (End of Period)
Special Mention $6,799 $5,109 $13,297 $8,581 $9,869
Substandard 7,930 8,460 8,552 10,445 10,327
Doubtful - - - - -
Pass (includes held for sale) 537,687 509,872 489,454 474,995 468,995
$552,416 $523,441 $511,303 $494,021 $489,191
======== ======== ======== ======== ========
Nonperforming Assets:
Non-accrual loans $4,049 $3,904 $4,502 6,013 $4,839
Other real estate owned 1,146 1,198 1,355 1,484 2,458
Accruing loans past due 90 days or more 53 99 38 32 -
--- --- --- --- ---
Total nonperforming assets $5,248 $5,201 $5,895 $7,529 $7,297
====== ====== ====== ====== ======
Accruing troubled debt restructurings $1,770 $1,815 $1,600 $1,634 $1,632
Three months ended Year ended
December 31, December 31,
2016 2015 2016 2015
---- ---- ---- ----
Loans charged-off: $69 $29 $180 $756
Overdrafts charged-off 13 13 59 50
Loan recoveries (10) (20) (72) (114)
Overdraft recoveries (8) (2) (16) (18)
Net Charge-offs $64 $20 $151 $674
=== === ==== ====
Net charge-offs to average loans 0.01% 0.00% 0.03% 0.14%
-------------------------------- ---- ---- ---- ----
FIRST COMMUNITY CORPORATION
INCOME STATEMENT DATA
(Dollars in thousands, except per share data)
Three months ended Three months ended Three months ended Three months ended Year ended
December 31, September 30, June 30, March 31, December 31,
2016 2015 2016 2015 2016 2015 2016 2015 2016 2015
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Interest Income $7,510 $7,203 $7,400 $7,114 $7,459 $7,049 $7,137 $7,283 $29,506 $28,649
Interest Expense 716 855 749 861 782 845 800 835 3,047 3,396
--- --- --- --- --- --- --- --- ----- -----
Net Interest Income 6,794 6,348 6,651 6,253 6,677 6,204 6,337 6,448 26,459 25,253
Provision for Loan Losses 238 148 179 193 217 391 140 406 774 1,138
--- --- --- --- --- --- --- --- --- -----
Net Interest Income After Provision 6,556 6,200 6,472 6,060 6,460 5,813 6,197 6,042 25,685 24,115
----- ----- ----- ----- ----- ----- ----- ----- ------ ------
Non-Interest Income:
Deposit service charges 341 386 377 390 340 346 347 347 1,405 1,469
Mortgage banking income 867 753 937 964 913 980 665 735 3,382 3,432
Investment advisory fees and non-deposit commissions 264 294 283 290 297 407 291 296 1,135 1,287
Gain on sale of securities - 84 478 - 64 167 59 104 601 355
Gain (loss) on sale other assets 3 (16) 45 19 (84) 3 3 4 (33) 8
Gain on redemption of subordinated debt (TRUPS) - 130 - - - - - - - 130
Loss on early extinguishment of debt - (226) (459) - - - - (103) (459) (329)
Other 725 686 726 666 734 662 724 598 2,909 2,614
--- --- --- --- --- --- --- --- ----- -----
Total non-interest income 2,200 2,091 2,387 2,329 2,264 2,565 2,089 1,981 8,940 8,966
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Non-interest Expense:
Salaries and employee benefits 3,851 3,610 3,888 3,595 3,833 3,658 3,751 3,565 15,323 14,428
Occupancy 566 578 531 513 511 500 559 485 2,167 2,076
Equipment 420 416 442 437 437 394 429 402 1,728 1,649
Marketing and public relations 336 165 240 129 195 328 94 226 865 848
FDIC assessment 76 138 60 113 138 138 138 138 412 527
Other real estate expense 14 90 115 126 21 154 51 154 201 524
Amortization of intangibles 75 88 80 98 80 98 83 103 318 387
Other 1,180 1,037 1,227 1,056 1,118 1,119 1,237 1,027 4,762 4,239
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total non-interest expense 6,518 6,122 6,583 6,067 6,333 6,389 6,342 6,100 25,776 24,678
----- ----- ----- ----- ----- ----- ----- ----- ------ ------
Income before taxes 2,238 2,169 2,276 2,322 2,391 1,989 1,944 1,923 8,849 8,403
Income tax expense 446 568 599 643 646 546 476 519 2,167 2,276
--- --- --- --- --- --- --- --- ----- -----
Net Income $1,792 $1,601 $1,677 $1,679 $1,745 $1,443 $1,468 $1,404 $6,682 $6,127
------ ------ ====== ====== ====== ====== ------ ------ ------ ------
Per share data:
Net income, basic $0.27 $0.24 $0.26 $0.26 $0.27 $0.22 $0.22 $0.22 $1.01 $0.93
Net income, diluted $0.26 $0.24 $0.25 $0.25 $0.26 $0.22 $0.22 $0.21 $0.98 $0.91
Average number of shares outstanding - basic 6,630,951 6,569,379 6,572,614 6,559,844 6,553,752 6,539,154 6,572,969 6,522,420 6,616,741 6,558,386
Average number of shares outstanding - diluted 6,805,447 6,736,615 6,762,074 6,712,026 6,732,574 6,697,620 6,751,074 6,664,654 6,787,132 6,718,553
Shares outstanding period end 6,708,393 6,690,551 6,703,317 6,684,563 6,699,030 6,679,938 6,893,042 6,683,960 6,708,393 6,690,551
Return on average assets 0.78% 0.74% 0.74% 0.81% 0.80% 0.70% 0.68% 0.70% 0.75% 0.73%
Return on average common equity 8.51% 8.06% 7.90% 8.73% 8.53% 7.53% 7.35% 7.54% 8.08% 7.94%
Return on average common tangible equity 9.20% 8.79% 8.54% 9.55% 9.24% 8.25% 7.99% 8.23% 8.76% 8.68%
Net Interest Margin (non taxable equivalent) 3.25% 3.19% 3.19% 3.22% 3.32% 3.25% 3.22% 3.51% 3.24% 3.28%
Net Interest Margin (taxable equivalent) 3.35% 3.29% 3.29% 3.32% 3.43% 3.34% 3.33% 3.62% 3.35% 3.38%
Efficiency Ratio 72.47% 71.47% 72.99% 70.53% 71.34% 74.27% 73.86% 73.27% 73.11% 71.25%
---------------- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
FIRST COMMUNITY CORPORATION
Yields on Average Earning Assets and Rates
on Average Interest-Bearing Liabilities
Three Months ended December 31, Three Months ended December 31,
2016 2015
-------------------------------- --------------------------------
Average Interest Yield/ Average Interest Yield/
Balance Earned/Paid Rate Balance Earned/Paid Rate
------- ----------- ---- ------- ----------- ----
Assets
Earning assets
Loans $536,925 $6,095 4.52% $487,203 $5,846 4.76%
Securities: 281,631 1,393 1.97% 280,804 1,324 1.87%
Other funds 13,636 22 0.64% 22,281 33 0.59%
Total earning assets 832,192 7,510 3.59% 790,288 7,203 3.62%
------- ----- ---- ------- ----- ----
Cash and due from banks 11,374 10,002
Premises and equipment 29,927 31,128
Intangible assets 6,217 6,545
Other assets 31,273 24,999
Allowance for loan losses (5,101) (4,549)
Total assets $905,882 $858,413
======== ========
Liabilities
Interest-bearing liabilities
Interest-bearing transaction accounts 155,757 41 0.10% 144,177 42 0.12%
Money market accounts 163,598 103 0.25% 163,314 108 0.26%
Savings deposits 75,518 23 0.12% 60,458 18 0.12%
Time deposits 183,401 293 0.64% 182,382 278 0.60%
Other borrowings 54,709 256 1.86% 64,639 409 2.51%
Total interest-bearing liabilities 632,983 716 0.45% 614,970 855 0.55%
------- --- ---- ------- --- ----
Demand deposits 182,238 158,252
Other liabilities 7,143 6,394
Shareholders' equity 83,518 78,797
Total liabilities and shareholders' equity $905,882 $858,413
======== ========
Cost of funds including demand deposits 0.35% 0.44%
Net interest spread 3.14% 3.06%
Net interest income/margin $6,794 3.25% $6,348 3.19%
====== ======
Tax equivalent $7,013 3.35% $6,559 3.29%
====== ======
FIRST COMMUNITY CORPORATION
Yields on Average Earning Assets and Rates
on Average Interest-Bearing Liabilities
Year ended December 31, 2016 Year ended December 31, 2015
---------------------------- ----------------------------
Average Interest Yield/ Average Interest Yield/
Balance Earned/Paid Rate Balance Earned/Paid Rate
------- ----------- ---- ------- ----------- ----
Assets
Earning assets
Loans $514,766 $23,677 4.60% $473,367 $23,219 4.91%
Securities: 283,585 5,724 2.02% 275,944 5,311 1.92%
Other funds 17,512 105 0.60% 20,293 119 0.59%
Total earning assets 815,863 29,506 3.62% 769,604 28,649 3.72%
------- ------ ---- ------- ------ ----
Cash and due from banks 10,903 8,070
Premises and equipment 30,084 30,833
Intangible assets 6,334 6,575
Other assets 29,922 24,895
Allowance for loan losses (4,866) (4,373)
Total assets $888,240 $835,604
======== ========
Liabilities
Interest-bearing liabilities
Interest-bearing transaction accounts 152,936 173 0.11% 137,969 160 0.12%
Money market accounts 164,826 426 0.26% 158,726 423 0.27%
Savings deposits 69,176 82 0.12% 57,958 68 0.12%
Time deposits 180,447 1,137 0.63% 186,911 1,099 0.59%
Other borrowings 59,569 1,229 2.06% 64,072 1,646 2.57%
Total interest-bearing liabilities 626,856 3,047 0.49% 605,636 3,396 0.56%
------- ----- ---- ------- ----- ----
Demand deposits 171,968 147,009
Other liabilities 6,663 5,835
Shareholders' equity 82,653 77,124
Total liabilities and shareholders' equity $888,240 $835,604
======== ========
Net interest spread 3.13% 3.16%
Net interest income/margin $28,459 3.24% $25,253 3.28%
======= =======
Tax Equivalent $27,326 3.35% $26,024 3.38%
======= =======
The tables below provide a reconciliation of non-GAAP measures to GAAP for the periods indicated:
December December
31, 31,
Tangible book value per common share 2016 2015
---- ----
Tangible common equity per common share (non-GAAP) $11.28 $10.84
Effect to adjust for intangible assets 0.92 0.97
---- ----
Book value per common share (GAAP) $12.20 $11.81
====== ======
Tangible common shareholders' equity to tangible
assets
Tangible common equity to tangible assets (non-GAAP) 8.33% 8.47%
Effect to adjust for intangible assets 0.62% 0.69%
---- ----
Common equity to assets (GAAP) 8.95% 9.16%
==== ====
Three months ended Three months ended Three Months ended Three months ended Year ended
December 31, September 30, June 30, March 31, December 31,
------------ ------------- -------- --------- ------------
Return on average tangible 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015
common equity
-------------
Return on average tangible 9.50% 8.79% 8.54% 9.55% 9.24% 8.25% 7.99% 8.23% 8.76% 8.68%
common equity
(non-GAAP)
Effect to adjust for intangible 0.99% (0.73)% (0.64)% (0.82)% (0.71)% (0.72)% (0.64)% (0.69)% (0.68)% (0.74)%
assets
Return on average common 8.51% 8.06% 7.90% 8.73% 8.53% 7.53% 7.35% 7.54% 8.08% 7.94%
equity (GAAP)
Certain financial information presented above is determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). These non-GAAP financial measures include "tangible book value at period end," "return on average tangible common equity" and "tangible common shareholders' equity to tangible assets." "Tangible book value at period end" is defined as total equity reduced by recorded intangible assets divided by total common shares outstanding. "Tangible common shareholders' equity to tangible assets" is defined as total common equity reduced by recorded intangible assets divided by total assets reduced by recorded intangible assets. Our management believes that these non-GAAP measures are useful because they enhance the ability of investors and management to evaluate and compare our operating results from period-to-period in a meaningful manner. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results as reported under GAAP.
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SOURCE First Community Corporation
