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First Community net income rises 24% in 2012

Staff Report
Published Jan. 16, 2013

First Community Corp., the holding company for First Community Bank, reported net income last year climbed 24% to $3.29 million compared with $2.65 million for 2011.

Net income for the fourth quarter of 2012 totaled $1.02 million, a 13.1% increase compared with $903,000 for the same period in 2011.

"The strength of our diversified revenue model was evident this year,” said Mike Crapps, president and CEO. “As our bank, and most of the industry, faced the headwind of net interest margin compression, we were still able to grow revenue during the year.”

Among the year’s highlights was a 32% increase in revenue from noninterest income by the company’s mortgage business, which produced $142 million in loans and $4.2 million in revenue for the year.

On July 27, the company closed on its public offering of common stock, leading to the issuance of 1.875 million shares that sold at $8 each and raised $15 million.

The funds were used to repurchase preferred stock issued to the U.S. Treasury under the Capital Purchase Program under the Troubled Asset Relief Program, redeem the related warrant issued to the U.S. Treasury and repurchase subordinated notes.

"First Community is now well-positioned to play offense from a position of strength with strong capital, no TARP-CPP funds, excellent credit quality, a diversified revenue model that is working to produce revenue growth and core earnings, and the proven ability to execute a strategic and disciplined growth strategy,” Crapps said. “We look forward to a bright future.”

Founded in 1996, Lexington-based First Community has 11 offices in the Midlands.

Previous coverage

First Community Corp. ranked a top-performing bank
First Community buys back preferred stock from U.S. Treasury
First Community sells $15M of new stock