false
--12-31
2023
Q3
0000932781
P11Y10M17D
P14Y4M17D
0000932781
2023-01-01
2023-09-30
0000932781
2023-11-09
0000932781
2023-09-30
0000932781
2022-12-31
0000932781
2023-07-01
2023-09-30
0000932781
2022-07-01
2022-09-30
0000932781
2022-01-01
2022-09-30
0000932781
us-gaap:CommonStockMember
2022-12-31
0000932781
us-gaap:AdditionalPaidInCapitalMember
2022-12-31
0000932781
fcco:NonvestedRestrictedStockMember
2022-12-31
0000932781
us-gaap:RetainedEarningsMember
2022-12-31
0000932781
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2022-12-31
0000932781
us-gaap:CommonStockMember
2021-12-31
0000932781
us-gaap:AdditionalPaidInCapitalMember
2021-12-31
0000932781
fcco:NonvestedRestrictedStockMember
2021-12-31
0000932781
us-gaap:RetainedEarningsMember
2021-12-31
0000932781
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2021-12-31
0000932781
2021-12-31
0000932781
us-gaap:CommonStockMember
2023-01-01
2023-09-30
0000932781
us-gaap:AdditionalPaidInCapitalMember
2023-01-01
2023-09-30
0000932781
fcco:NonvestedRestrictedStockMember
2023-01-01
2023-09-30
0000932781
us-gaap:RetainedEarningsMember
2023-01-01
2023-09-30
0000932781
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2023-01-01
2023-09-30
0000932781
us-gaap:CommonStockMember
2022-01-01
2022-09-30
0000932781
us-gaap:AdditionalPaidInCapitalMember
2022-01-01
2022-09-30
0000932781
fcco:NonvestedRestrictedStockMember
2022-01-01
2022-09-30
0000932781
us-gaap:RetainedEarningsMember
2022-01-01
2022-09-30
0000932781
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2022-01-01
2022-09-30
0000932781
us-gaap:CommonStockMember
2023-01-01
2023-03-31
0000932781
us-gaap:AdditionalPaidInCapitalMember
2023-01-01
2023-03-31
0000932781
fcco:NonvestedRestrictedStockMember
2023-01-01
2023-03-31
0000932781
us-gaap:RetainedEarningsMember
2023-01-01
2023-03-31
0000932781
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2023-01-01
2023-03-31
0000932781
2023-01-01
2023-03-31
0000932781
us-gaap:CommonStockMember
2023-04-01
2023-06-30
0000932781
us-gaap:AdditionalPaidInCapitalMember
2023-04-01
2023-06-30
0000932781
fcco:NonvestedRestrictedStockMember
2023-04-01
2023-06-30
0000932781
us-gaap:RetainedEarningsMember
2023-04-01
2023-06-30
0000932781
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2023-04-01
2023-06-30
0000932781
2023-04-01
2023-06-30
0000932781
us-gaap:CommonStockMember
2023-07-01
2023-09-30
0000932781
us-gaap:AdditionalPaidInCapitalMember
2023-07-01
2023-09-30
0000932781
fcco:NonvestedRestrictedStockMember
2023-07-01
2023-09-30
0000932781
us-gaap:RetainedEarningsMember
2023-07-01
2023-09-30
0000932781
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2023-07-01
2023-09-30
0000932781
us-gaap:CommonStockMember
2022-01-01
2022-03-31
0000932781
us-gaap:AdditionalPaidInCapitalMember
2022-01-01
2022-03-31
0000932781
fcco:NonvestedRestrictedStockMember
2022-01-01
2022-03-31
0000932781
us-gaap:RetainedEarningsMember
2022-01-01
2022-03-31
0000932781
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2022-01-01
2022-03-31
0000932781
2022-01-01
2022-03-31
0000932781
us-gaap:CommonStockMember
2022-04-01
2022-06-30
0000932781
us-gaap:AdditionalPaidInCapitalMember
2022-04-01
2022-06-30
0000932781
fcco:NonvestedRestrictedStockMember
2022-04-01
2022-06-30
0000932781
us-gaap:RetainedEarningsMember
2022-04-01
2022-06-30
0000932781
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2022-04-01
2022-06-30
0000932781
2022-04-01
2022-06-30
0000932781
us-gaap:CommonStockMember
2022-07-01
2022-09-30
0000932781
us-gaap:AdditionalPaidInCapitalMember
2022-07-01
2022-09-30
0000932781
fcco:NonvestedRestrictedStockMember
2022-07-01
2022-09-30
0000932781
us-gaap:RetainedEarningsMember
2022-07-01
2022-09-30
0000932781
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2022-07-01
2022-09-30
0000932781
us-gaap:CommonStockMember
2023-09-30
0000932781
us-gaap:AdditionalPaidInCapitalMember
2023-09-30
0000932781
fcco:NonvestedRestrictedStockMember
2023-09-30
0000932781
us-gaap:RetainedEarningsMember
2023-09-30
0000932781
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2023-09-30
0000932781
us-gaap:CommonStockMember
2022-09-30
0000932781
us-gaap:AdditionalPaidInCapitalMember
2022-09-30
0000932781
fcco:NonvestedRestrictedStockMember
2022-09-30
0000932781
us-gaap:RetainedEarningsMember
2022-09-30
0000932781
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2022-09-30
0000932781
2022-09-30
0000932781
us-gaap:CommonStockMember
2023-03-31
0000932781
us-gaap:AdditionalPaidInCapitalMember
2023-03-31
0000932781
fcco:NonvestedRestrictedStockMember
2023-03-31
0000932781
us-gaap:RetainedEarningsMember
2023-03-31
0000932781
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2023-03-31
0000932781
2023-03-31
0000932781
us-gaap:CommonStockMember
2023-06-30
0000932781
us-gaap:AdditionalPaidInCapitalMember
2023-06-30
0000932781
fcco:NonvestedRestrictedStockMember
2023-06-30
0000932781
us-gaap:RetainedEarningsMember
2023-06-30
0000932781
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2023-06-30
0000932781
2023-06-30
0000932781
us-gaap:CommonStockMember
2022-03-31
0000932781
us-gaap:AdditionalPaidInCapitalMember
2022-03-31
0000932781
fcco:NonvestedRestrictedStockMember
2022-03-31
0000932781
us-gaap:RetainedEarningsMember
2022-03-31
0000932781
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2022-03-31
0000932781
2022-03-31
0000932781
us-gaap:CommonStockMember
2022-06-30
0000932781
us-gaap:AdditionalPaidInCapitalMember
2022-06-30
0000932781
fcco:NonvestedRestrictedStockMember
2022-06-30
0000932781
us-gaap:RetainedEarningsMember
2022-06-30
0000932781
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2022-06-30
0000932781
2022-06-30
0000932781
us-gaap:AccountingStandardsUpdate201613Member
srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember
2023-01-01
0000932781
us-gaap:AccountingStandardsUpdate201613Member
srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember
2022-12-31
0000932781
us-gaap:AccountingStandardsUpdate201613Member
2022-12-31
0000932781
us-gaap:AccountingStandardsUpdate201613Member
srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember
us-gaap:USStatesAndPoliticalSubdivisionsMember
2023-01-01
0000932781
us-gaap:AccountingStandardsUpdate201613Member
srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember
us-gaap:USStatesAndPoliticalSubdivisionsMember
2022-12-31
0000932781
us-gaap:AccountingStandardsUpdate201613Member
us-gaap:USStatesAndPoliticalSubdivisionsMember
2022-12-31
0000932781
us-gaap:AccountingStandardsUpdate201613Member
srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember
us-gaap:CommercialPortfolioSegmentMember
2023-01-01
0000932781
us-gaap:AccountingStandardsUpdate201613Member
srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember
us-gaap:CommercialPortfolioSegmentMember
2022-12-31
0000932781
us-gaap:AccountingStandardsUpdate201613Member
us-gaap:CommercialPortfolioSegmentMember
2022-12-31
0000932781
us-gaap:AccountingStandardsUpdate201613Member
srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember
fcco:RealEstateConstructionMember
2023-01-01
0000932781
us-gaap:AccountingStandardsUpdate201613Member
srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember
fcco:RealEstateConstructionMember
2022-12-31
0000932781
us-gaap:AccountingStandardsUpdate201613Member
fcco:RealEstateConstructionMember
2022-12-31
0000932781
us-gaap:AccountingStandardsUpdate201613Member
srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember
us-gaap:ResidentialPortfolioSegmentMember
2023-01-01
0000932781
us-gaap:AccountingStandardsUpdate201613Member
srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember
us-gaap:ResidentialPortfolioSegmentMember
2022-12-31
0000932781
us-gaap:AccountingStandardsUpdate201613Member
us-gaap:ResidentialPortfolioSegmentMember
2022-12-31
0000932781
us-gaap:AccountingStandardsUpdate201613Member
srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember
fcco:RealEstateMortgageCommercialMember
2023-01-01
0000932781
us-gaap:AccountingStandardsUpdate201613Member
srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember
fcco:RealEstateMortgageCommercialMember
2022-12-31
0000932781
us-gaap:AccountingStandardsUpdate201613Member
fcco:RealEstateMortgageCommercialMember
2022-12-31
0000932781
us-gaap:AccountingStandardsUpdate201613Member
srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember
fcco:ConsumerHomeEquityMember
2023-01-01
0000932781
us-gaap:AccountingStandardsUpdate201613Member
srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember
fcco:ConsumerHomeEquityMember
2022-12-31
0000932781
us-gaap:AccountingStandardsUpdate201613Member
fcco:ConsumerHomeEquityMember
2022-12-31
0000932781
us-gaap:AccountingStandardsUpdate201613Member
srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember
fcco:ConsumerOtherMember
2023-01-01
0000932781
us-gaap:AccountingStandardsUpdate201613Member
srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember
fcco:ConsumerOtherMember
2022-12-31
0000932781
us-gaap:AccountingStandardsUpdate201613Member
fcco:ConsumerOtherMember
2022-12-31
0000932781
us-gaap:AccountingStandardsUpdate201613Member
srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember
us-gaap:UnallocatedFinancingReceivablesMember
2023-01-01
0000932781
us-gaap:AccountingStandardsUpdate201613Member
srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember
us-gaap:UnallocatedFinancingReceivablesMember
2022-12-31
0000932781
us-gaap:AccountingStandardsUpdate201613Member
us-gaap:UnallocatedFinancingReceivablesMember
2022-12-31
0000932781
us-gaap:USTreasurySecuritiesMember
2023-09-30
0000932781
fcco:SmallBusinessAdministrationSecuritiesMember
2023-09-30
0000932781
fcco:CorporateAndOtherDebtSecuritiesMember
2023-09-30
0000932781
us-gaap:USTreasurySecuritiesMember
2022-12-31
0000932781
fcco:SmallBusinessAdministrationSecuritiesMember
2022-12-31
0000932781
fcco:CorporateAndOtherDebtSecuritiesMember
2022-12-31
0000932781
us-gaap:USStatesAndPoliticalSubdivisionsMember
2023-09-30
0000932781
us-gaap:USStatesAndPoliticalSubdivisionsMember
2022-12-31
0000932781
us-gaap:USStatesAndPoliticalSubdivisionsMember
2023-06-30
0000932781
us-gaap:USStatesAndPoliticalSubdivisionsMember
2023-01-01
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
2023-09-30
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
2022-12-31
0000932781
us-gaap:ConstructionLoansMember
2023-09-30
0000932781
us-gaap:ConstructionLoansMember
2022-12-31
0000932781
us-gaap:ResidentialMortgageMember
2023-09-30
0000932781
us-gaap:ResidentialMortgageMember
2022-12-31
0000932781
us-gaap:CommercialRealEstateMember
2023-09-30
0000932781
us-gaap:CommercialRealEstateMember
2022-12-31
0000932781
us-gaap:HomeEquityMember
2023-09-30
0000932781
us-gaap:HomeEquityMember
2022-12-31
0000932781
us-gaap:ConsumerPortfolioSegmentMember
2023-09-30
0000932781
us-gaap:ConsumerPortfolioSegmentMember
2022-12-31
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
us-gaap:PassMember
2023-09-30
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
us-gaap:SpecialMentionMember
2023-09-30
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
us-gaap:SubstandardMember
2023-09-30
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
2023-01-01
2023-09-30
0000932781
us-gaap:ConstructionLoansMember
us-gaap:PassMember
2023-09-30
0000932781
us-gaap:ConstructionLoansMember
2023-01-01
2023-09-30
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:PassMember
2023-09-30
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:SpecialMentionMember
2023-09-30
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:SubstandardMember
2023-09-30
0000932781
us-gaap:ResidentialMortgageMember
2023-01-01
2023-09-30
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:PassMember
2023-09-30
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:SpecialMentionMember
2023-09-30
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:SubstandardMember
2023-09-30
0000932781
us-gaap:CommercialRealEstateMember
2023-01-01
2023-09-30
0000932781
us-gaap:HomeEquityMember
us-gaap:PassMember
2023-09-30
0000932781
us-gaap:HomeEquityMember
us-gaap:SpecialMentionMember
2023-09-30
0000932781
us-gaap:HomeEquityMember
us-gaap:SubstandardMember
2023-09-30
0000932781
us-gaap:HomeEquityMember
2023-01-01
2023-09-30
0000932781
us-gaap:ConsumerPortfolioSegmentMember
us-gaap:PassMember
2023-09-30
0000932781
us-gaap:ConsumerPortfolioSegmentMember
us-gaap:SpecialMentionMember
2023-09-30
0000932781
us-gaap:ConsumerPortfolioSegmentMember
us-gaap:SubstandardMember
2023-09-30
0000932781
us-gaap:ConsumerPortfolioSegmentMember
2023-01-01
2023-09-30
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
us-gaap:PassMember
2022-12-31
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
us-gaap:SpecialMentionMember
2022-12-31
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
us-gaap:SubstandardMember
2022-12-31
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
us-gaap:DoubtfulMember
2022-12-31
0000932781
us-gaap:ConstructionLoansMember
us-gaap:PassMember
2022-12-31
0000932781
us-gaap:ConstructionLoansMember
us-gaap:SpecialMentionMember
2022-12-31
0000932781
us-gaap:ConstructionLoansMember
us-gaap:SubstandardMember
2022-12-31
0000932781
us-gaap:ConstructionLoansMember
us-gaap:DoubtfulMember
2022-12-31
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:PassMember
2022-12-31
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:SpecialMentionMember
2022-12-31
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:SubstandardMember
2022-12-31
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:DoubtfulMember
2022-12-31
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:PassMember
2022-12-31
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:SpecialMentionMember
2022-12-31
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:SubstandardMember
2022-12-31
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:DoubtfulMember
2022-12-31
0000932781
us-gaap:HomeEquityMember
us-gaap:PassMember
2022-12-31
0000932781
us-gaap:HomeEquityMember
us-gaap:SpecialMentionMember
2022-12-31
0000932781
us-gaap:HomeEquityMember
us-gaap:SubstandardMember
2022-12-31
0000932781
us-gaap:HomeEquityMember
us-gaap:DoubtfulMember
2022-12-31
0000932781
us-gaap:ConsumerPortfolioSegmentMember
us-gaap:PassMember
2022-12-31
0000932781
us-gaap:ConsumerPortfolioSegmentMember
us-gaap:SpecialMentionMember
2022-12-31
0000932781
us-gaap:ConsumerPortfolioSegmentMember
us-gaap:SubstandardMember
2022-12-31
0000932781
us-gaap:ConsumerPortfolioSegmentMember
us-gaap:DoubtfulMember
2022-12-31
0000932781
us-gaap:PassMember
2022-12-31
0000932781
us-gaap:SpecialMentionMember
2022-12-31
0000932781
us-gaap:SubstandardMember
2022-12-31
0000932781
us-gaap:DoubtfulMember
2022-12-31
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
2023-06-30
0000932781
us-gaap:ConstructionLoansMember
2023-06-30
0000932781
us-gaap:ResidentialMortgageMember
2023-06-30
0000932781
us-gaap:CommercialRealEstateMember
2023-06-30
0000932781
us-gaap:HomeEquityMember
2023-06-30
0000932781
us-gaap:ConsumerPortfolioSegmentMember
2023-06-30
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
2023-07-01
2023-09-30
0000932781
us-gaap:ConstructionLoansMember
2023-07-01
2023-09-30
0000932781
us-gaap:ResidentialMortgageMember
2023-07-01
2023-09-30
0000932781
us-gaap:CommercialRealEstateMember
2023-07-01
2023-09-30
0000932781
us-gaap:HomeEquityMember
2023-07-01
2023-09-30
0000932781
us-gaap:ConsumerPortfolioSegmentMember
2023-07-01
2023-09-30
0000932781
us-gaap:UnallocatedFinancingReceivablesMember
2022-12-31
0000932781
us-gaap:UnallocatedFinancingReceivablesMember
2023-01-01
2023-09-30
0000932781
us-gaap:UnallocatedFinancingReceivablesMember
2023-09-30
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
2022-06-30
0000932781
us-gaap:ConstructionLoansMember
2022-06-30
0000932781
us-gaap:ResidentialMortgageMember
2022-06-30
0000932781
us-gaap:CommercialRealEstateMember
2022-06-30
0000932781
us-gaap:HomeEquityMember
2022-06-30
0000932781
us-gaap:ConsumerPortfolioSegmentMember
2022-06-30
0000932781
us-gaap:UnallocatedFinancingReceivablesMember
2022-06-30
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
2022-07-01
2022-09-30
0000932781
us-gaap:ConstructionLoansMember
2022-07-01
2022-09-30
0000932781
us-gaap:ResidentialMortgageMember
2022-07-01
2022-09-30
0000932781
us-gaap:CommercialRealEstateMember
2022-07-01
2022-09-30
0000932781
us-gaap:HomeEquityMember
2022-07-01
2022-09-30
0000932781
us-gaap:ConsumerPortfolioSegmentMember
2022-07-01
2022-09-30
0000932781
us-gaap:UnallocatedFinancingReceivablesMember
2022-07-01
2022-09-30
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
2022-09-30
0000932781
us-gaap:ConstructionLoansMember
2022-09-30
0000932781
us-gaap:ResidentialMortgageMember
2022-09-30
0000932781
us-gaap:CommercialRealEstateMember
2022-09-30
0000932781
us-gaap:HomeEquityMember
2022-09-30
0000932781
us-gaap:ConsumerPortfolioSegmentMember
2022-09-30
0000932781
us-gaap:UnallocatedFinancingReceivablesMember
2022-09-30
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
2021-12-31
0000932781
us-gaap:ConstructionLoansMember
2021-12-31
0000932781
us-gaap:ResidentialMortgageMember
2021-12-31
0000932781
us-gaap:CommercialRealEstateMember
2021-12-31
0000932781
us-gaap:HomeEquityMember
2021-12-31
0000932781
us-gaap:ConsumerPortfolioSegmentMember
2021-12-31
0000932781
us-gaap:UnallocatedFinancingReceivablesMember
2021-12-31
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
2022-01-01
2022-09-30
0000932781
us-gaap:ConstructionLoansMember
2022-01-01
2022-09-30
0000932781
us-gaap:ResidentialMortgageMember
2022-01-01
2022-09-30
0000932781
us-gaap:CommercialRealEstateMember
2022-01-01
2022-09-30
0000932781
us-gaap:HomeEquityMember
2022-01-01
2022-09-30
0000932781
us-gaap:ConsumerPortfolioSegmentMember
2022-01-01
2022-09-30
0000932781
us-gaap:UnallocatedFinancingReceivablesMember
2022-01-01
2022-09-30
0000932781
us-gaap:FinancialAssetNotPastDueMember
us-gaap:ResidentialMortgageMember
2023-09-30
0000932781
fcco:FinancingReceivables30To89DaysPastDueMember
us-gaap:ResidentialMortgageMember
2023-09-30
0000932781
us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember
us-gaap:ResidentialMortgageMember
2023-09-30
0000932781
us-gaap:FinancialAssetNotPastDueMember
2023-09-30
0000932781
fcco:FinancingReceivables30To89DaysPastDueMember
2023-09-30
0000932781
us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember
2023-09-30
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
us-gaap:FinancingReceivables30To59DaysPastDueMember
2023-09-30
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
us-gaap:FinancingReceivables60To89DaysPastDueMember
2023-09-30
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember
2023-09-30
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
fcco:FinancingReceivablesNonaccrualMember
2023-09-30
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
us-gaap:FinancialAssetPastDueMember
2023-09-30
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
us-gaap:FinancialAssetNotPastDueMember
2023-09-30
0000932781
us-gaap:ConstructionLoansMember
us-gaap:FinancingReceivables30To59DaysPastDueMember
2023-09-30
0000932781
us-gaap:ConstructionLoansMember
us-gaap:FinancingReceivables60To89DaysPastDueMember
2023-09-30
0000932781
us-gaap:ConstructionLoansMember
us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember
2023-09-30
0000932781
us-gaap:ConstructionLoansMember
fcco:FinancingReceivablesNonaccrualMember
2023-09-30
0000932781
us-gaap:ConstructionLoansMember
us-gaap:FinancialAssetPastDueMember
2023-09-30
0000932781
us-gaap:ConstructionLoansMember
us-gaap:FinancialAssetNotPastDueMember
2023-09-30
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:FinancingReceivables30To59DaysPastDueMember
2023-09-30
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:FinancingReceivables60To89DaysPastDueMember
2023-09-30
0000932781
us-gaap:ResidentialMortgageMember
fcco:FinancingReceivablesNonaccrualMember
2023-09-30
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:FinancialAssetPastDueMember
2023-09-30
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:FinancingReceivables30To59DaysPastDueMember
2023-09-30
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:FinancingReceivables60To89DaysPastDueMember
2023-09-30
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember
2023-09-30
0000932781
us-gaap:CommercialRealEstateMember
fcco:FinancingReceivablesNonaccrualMember
2023-09-30
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:FinancialAssetPastDueMember
2023-09-30
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:FinancialAssetNotPastDueMember
2023-09-30
0000932781
us-gaap:HomeEquityMember
us-gaap:FinancingReceivables30To59DaysPastDueMember
2023-09-30
0000932781
us-gaap:HomeEquityMember
us-gaap:FinancingReceivables60To89DaysPastDueMember
2023-09-30
0000932781
us-gaap:HomeEquityMember
us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember
2023-09-30
0000932781
us-gaap:HomeEquityMember
fcco:FinancingReceivablesNonaccrualMember
2023-09-30
0000932781
us-gaap:HomeEquityMember
us-gaap:FinancialAssetPastDueMember
2023-09-30
0000932781
us-gaap:HomeEquityMember
us-gaap:FinancialAssetNotPastDueMember
2023-09-30
0000932781
us-gaap:ConsumerPortfolioSegmentMember
us-gaap:FinancingReceivables30To59DaysPastDueMember
2023-09-30
0000932781
us-gaap:ConsumerPortfolioSegmentMember
us-gaap:FinancingReceivables60To89DaysPastDueMember
2023-09-30
0000932781
us-gaap:ConsumerPortfolioSegmentMember
us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember
2023-09-30
0000932781
us-gaap:ConsumerPortfolioSegmentMember
fcco:FinancingReceivablesNonaccrualMember
2023-09-30
0000932781
us-gaap:ConsumerPortfolioSegmentMember
us-gaap:FinancialAssetPastDueMember
2023-09-30
0000932781
us-gaap:ConsumerPortfolioSegmentMember
us-gaap:FinancialAssetNotPastDueMember
2023-09-30
0000932781
us-gaap:FinancingReceivables30To59DaysPastDueMember
2023-09-30
0000932781
us-gaap:FinancingReceivables60To89DaysPastDueMember
2023-09-30
0000932781
fcco:FinancingReceivablesNonaccrualMember
2023-09-30
0000932781
us-gaap:FinancialAssetPastDueMember
2023-09-30
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
us-gaap:FinancingReceivables30To59DaysPastDueMember
2022-12-31
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
us-gaap:FinancingReceivables60To89DaysPastDueMember
2022-12-31
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember
2022-12-31
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
fcco:FinancingReceivablesNonaccrualMember
2022-12-31
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
us-gaap:FinancialAssetPastDueMember
2022-12-31
0000932781
fcco:CommercialFinancialAndAgriculturalLoansMember
us-gaap:FinancialAssetNotPastDueMember
2022-12-31
0000932781
us-gaap:ConstructionLoansMember
us-gaap:FinancingReceivables30To59DaysPastDueMember
2022-12-31
0000932781
us-gaap:ConstructionLoansMember
us-gaap:FinancingReceivables60To89DaysPastDueMember
2022-12-31
0000932781
us-gaap:ConstructionLoansMember
us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember
2022-12-31
0000932781
us-gaap:ConstructionLoansMember
fcco:FinancingReceivablesNonaccrualMember
2022-12-31
0000932781
us-gaap:ConstructionLoansMember
us-gaap:FinancialAssetPastDueMember
2022-12-31
0000932781
us-gaap:ConstructionLoansMember
us-gaap:FinancialAssetNotPastDueMember
2022-12-31
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:FinancingReceivables30To59DaysPastDueMember
2022-12-31
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:FinancingReceivables60To89DaysPastDueMember
2022-12-31
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember
2022-12-31
0000932781
us-gaap:ResidentialMortgageMember
fcco:FinancingReceivablesNonaccrualMember
2022-12-31
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:FinancialAssetPastDueMember
2022-12-31
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:FinancialAssetNotPastDueMember
2022-12-31
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:FinancingReceivables30To59DaysPastDueMember
2022-12-31
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:FinancingReceivables60To89DaysPastDueMember
2022-12-31
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember
2022-12-31
0000932781
us-gaap:CommercialRealEstateMember
fcco:FinancingReceivablesNonaccrualMember
2022-12-31
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:FinancialAssetPastDueMember
2022-12-31
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:FinancialAssetNotPastDueMember
2022-12-31
0000932781
us-gaap:HomeEquityMember
us-gaap:FinancingReceivables30To59DaysPastDueMember
2022-12-31
0000932781
us-gaap:HomeEquityMember
us-gaap:FinancingReceivables60To89DaysPastDueMember
2022-12-31
0000932781
us-gaap:HomeEquityMember
us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember
2022-12-31
0000932781
us-gaap:HomeEquityMember
fcco:FinancingReceivablesNonaccrualMember
2022-12-31
0000932781
us-gaap:HomeEquityMember
us-gaap:FinancialAssetPastDueMember
2022-12-31
0000932781
us-gaap:HomeEquityMember
us-gaap:FinancialAssetNotPastDueMember
2022-12-31
0000932781
us-gaap:ConsumerPortfolioSegmentMember
us-gaap:FinancingReceivables30To59DaysPastDueMember
2022-12-31
0000932781
us-gaap:ConsumerPortfolioSegmentMember
us-gaap:FinancingReceivables60To89DaysPastDueMember
2022-12-31
0000932781
us-gaap:ConsumerPortfolioSegmentMember
us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember
2022-12-31
0000932781
us-gaap:ConsumerPortfolioSegmentMember
fcco:FinancingReceivablesNonaccrualMember
2022-12-31
0000932781
us-gaap:ConsumerPortfolioSegmentMember
us-gaap:FinancialAssetPastDueMember
2022-12-31
0000932781
us-gaap:ConsumerPortfolioSegmentMember
us-gaap:FinancialAssetNotPastDueMember
2022-12-31
0000932781
us-gaap:FinancingReceivables30To59DaysPastDueMember
2022-12-31
0000932781
us-gaap:FinancingReceivables60To89DaysPastDueMember
2022-12-31
0000932781
us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember
2022-12-31
0000932781
fcco:FinancingReceivablesNonaccrualMember
2022-12-31
0000932781
us-gaap:FinancialAssetPastDueMember
2022-12-31
0000932781
us-gaap:FinancialAssetNotPastDueMember
2022-12-31
0000932781
us-gaap:UnfundedLoanCommitmentMember
2023-06-30
0000932781
us-gaap:UnfundedLoanCommitmentMember
2023-07-01
2023-09-30
0000932781
us-gaap:UnfundedLoanCommitmentMember
2023-09-30
0000932781
us-gaap:UnfundedLoanCommitmentMember
2022-12-31
0000932781
us-gaap:UnfundedLoanCommitmentMember
2023-01-01
0000932781
us-gaap:UnfundedLoanCommitmentMember
2023-01-01
2023-09-30
0000932781
us-gaap:USTreasurySecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
2023-09-30
0000932781
us-gaap:USTreasurySecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
2023-09-30
0000932781
us-gaap:USTreasurySecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
2023-09-30
0000932781
us-gaap:USTreasurySecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
2023-09-30
0000932781
us-gaap:MortgageBackedSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
2023-09-30
0000932781
us-gaap:MortgageBackedSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
2023-09-30
0000932781
us-gaap:MortgageBackedSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
2023-09-30
0000932781
us-gaap:MortgageBackedSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
2023-09-30
0000932781
fcco:SmallBusinessAdministrationSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
2023-09-30
0000932781
fcco:SmallBusinessAdministrationSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
2023-09-30
0000932781
fcco:SmallBusinessAdministrationSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
2023-09-30
0000932781
fcco:SmallBusinessAdministrationSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
2023-09-30
0000932781
fcco:CorporateAndOtherDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
2023-09-30
0000932781
fcco:CorporateAndOtherDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
2023-09-30
0000932781
fcco:CorporateAndOtherDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
2023-09-30
0000932781
fcco:CorporateAndOtherDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
2023-09-30
0000932781
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
2023-09-30
0000932781
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
2023-09-30
0000932781
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
2023-09-30
0000932781
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
2023-09-30
0000932781
us-gaap:USTreasurySecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
2022-12-31
0000932781
us-gaap:USTreasurySecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
2022-12-31
0000932781
us-gaap:USTreasurySecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
2022-12-31
0000932781
us-gaap:USTreasurySecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
2022-12-31
0000932781
us-gaap:MortgageBackedSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
2022-12-31
0000932781
us-gaap:MortgageBackedSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
2022-12-31
0000932781
us-gaap:MortgageBackedSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
2022-12-31
0000932781
us-gaap:MortgageBackedSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
2022-12-31
0000932781
fcco:SmallBusinessAdministrationSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
2022-12-31
0000932781
fcco:SmallBusinessAdministrationSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
2022-12-31
0000932781
fcco:SmallBusinessAdministrationSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
2022-12-31
0000932781
fcco:SmallBusinessAdministrationSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
2022-12-31
0000932781
fcco:CorporateAndOtherDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
2022-12-31
0000932781
fcco:CorporateAndOtherDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
2022-12-31
0000932781
fcco:CorporateAndOtherDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
2022-12-31
0000932781
fcco:CorporateAndOtherDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
2022-12-31
0000932781
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
2022-12-31
0000932781
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member
2022-12-31
0000932781
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
2022-12-31
0000932781
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member
2022-12-31
0000932781
us-gaap:ConstructionLoansMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
2023-09-30
0000932781
us-gaap:ConstructionLoansMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel1Member
2023-09-30
0000932781
us-gaap:ConstructionLoansMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel2Member
2023-09-30
0000932781
us-gaap:ConstructionLoansMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel3Member
2023-09-30
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
2023-09-30
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel1Member
2023-09-30
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel2Member
2023-09-30
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel3Member
2023-09-30
0000932781
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
2023-09-30
0000932781
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel1Member
2023-09-30
0000932781
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel2Member
2023-09-30
0000932781
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel3Member
2023-09-30
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
2022-12-31
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel1Member
2022-12-31
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel2Member
2022-12-31
0000932781
us-gaap:ResidentialMortgageMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel3Member
2022-12-31
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
2022-12-31
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel1Member
2022-12-31
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel2Member
2022-12-31
0000932781
us-gaap:CommercialRealEstateMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel3Member
2022-12-31
0000932781
us-gaap:HomeEquityMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
2022-12-31
0000932781
us-gaap:HomeEquityMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel1Member
2022-12-31
0000932781
us-gaap:HomeEquityMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel2Member
2022-12-31
0000932781
us-gaap:HomeEquityMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel3Member
2022-12-31
0000932781
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
2022-12-31
0000932781
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel1Member
2022-12-31
0000932781
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel2Member
2022-12-31
0000932781
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel3Member
2022-12-31
0000932781
us-gaap:ConstructionLoansMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
2022-12-31
0000932781
us-gaap:ConstructionLoansMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel1Member
2022-12-31
0000932781
us-gaap:ConstructionLoansMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel2Member
2022-12-31
0000932781
us-gaap:ConstructionLoansMember
us-gaap:FairValueMeasurementsNonrecurringMember
us-gaap:FairValueInputsLevel3Member
2022-12-31
0000932781
fcco:OtherRealEstateOwnedMember
us-gaap:FairValueInputsLevel3Member
fcco:AppraisalValueComparisonSalesOtherEstimatesValuationTechniqueMember
2023-09-30
0000932781
fcco:OtherRealEstateOwnedMember
us-gaap:FairValueInputsLevel3Member
fcco:AppraisalValueComparisonSalesOtherEstimatesValuationTechniqueMember
srt:MinimumMember
us-gaap:MeasurementInputDiscountRateMember
2023-01-01
2023-09-30
0000932781
fcco:OtherRealEstateOwnedMember
us-gaap:FairValueInputsLevel3Member
fcco:AppraisalValueComparisonSalesOtherEstimatesValuationTechniqueMember
srt:MaximumMember
us-gaap:MeasurementInputDiscountRateMember
2023-01-01
2023-09-30
0000932781
fcco:OtherRealEstateOwnedMember
us-gaap:FairValueInputsLevel3Member
fcco:AppraisalValueComparisonSalesOtherEstimatesValuationTechniqueMember
2022-12-31
0000932781
fcco:OtherRealEstateOwnedMember
us-gaap:FairValueInputsLevel3Member
fcco:AppraisalValueComparisonSalesOtherEstimatesValuationTechniqueMember
srt:MinimumMember
us-gaap:MeasurementInputDiscountRateMember
2022-01-01
2022-09-30
0000932781
fcco:OtherRealEstateOwnedMember
us-gaap:FairValueInputsLevel3Member
fcco:AppraisalValueComparisonSalesOtherEstimatesValuationTechniqueMember
srt:MaximumMember
us-gaap:MeasurementInputDiscountRateMember
2022-01-01
2022-09-30
0000932781
fcco:ImpairedLoansMember
us-gaap:FairValueInputsLevel3Member
fcco:AppraisalValueDiscountedCashFlowsValuationTechniqueMember
2022-12-31
0000932781
fcco:ImpairedLoansMember
us-gaap:FairValueInputsLevel3Member
fcco:AppraisalValueComparisonSalesOtherEstimatesValuationTechniqueMember
srt:MinimumMember
us-gaap:MeasurementInputDiscountRateMember
2022-01-01
2022-09-30
0000932781
fcco:ImpairedLoansMember
us-gaap:FairValueInputsLevel3Member
fcco:AppraisalValueComparisonSalesOtherEstimatesValuationTechniqueMember
srt:MaximumMember
us-gaap:MeasurementInputDiscountRateMember
2022-01-01
2022-09-30
0000932781
fcco:TimeDeposits100000OrMoreMember
2023-09-30
0000932781
fcco:TimeDeposits100000OrMoreMember
2022-12-31
0000932781
fcco:CollateralizedPublicFundMember
2023-09-30
0000932781
fcco:CollateralizedPublicFundMember
2022-12-31
0000932781
fcco:CommercialAndRetailBankingMember
2023-07-01
2023-09-30
0000932781
us-gaap:MortgageBankingMember
2023-07-01
2023-09-30
0000932781
fcco:InvestmentAdvisoryAndNonDepositMember
2023-07-01
2023-09-30
0000932781
us-gaap:CorporateMember
2023-07-01
2023-09-30
0000932781
srt:ConsolidationEliminationsMember
2023-07-01
2023-09-30
0000932781
fcco:CommercialAndRetailBankingMember
2022-07-01
2022-09-30
0000932781
us-gaap:MortgageBankingMember
2022-07-01
2022-09-30
0000932781
fcco:InvestmentAdvisoryAndNonDepositMember
2022-07-01
2022-09-30
0000932781
us-gaap:CorporateMember
2022-07-01
2022-09-30
0000932781
srt:ConsolidationEliminationsMember
2022-07-01
2022-09-30
0000932781
fcco:CommercialAndRetailBankingMember
2023-01-01
2023-09-30
0000932781
us-gaap:MortgageBankingMember
2023-01-01
2023-09-30
0000932781
fcco:InvestmentAdvisoryAndNonDepositMember
2023-01-01
2023-09-30
0000932781
us-gaap:CorporateMember
2023-01-01
2023-09-30
0000932781
srt:ConsolidationEliminationsMember
2023-01-01
2023-09-30
0000932781
fcco:CommercialAndRetailBankingMember
2022-01-01
2022-09-30
0000932781
us-gaap:MortgageBankingMember
2022-01-01
2022-09-30
0000932781
fcco:InvestmentAdvisoryAndNonDepositMember
2022-01-01
2022-09-30
0000932781
us-gaap:CorporateMember
2022-01-01
2022-09-30
0000932781
srt:ConsolidationEliminationsMember
2022-01-01
2022-09-30
0000932781
fcco:CommercialAndRetailBankingMember
2023-09-30
0000932781
us-gaap:MortgageBankingMember
2023-09-30
0000932781
fcco:InvestmentAdvisoryAndNonDepositMember
2023-09-30
0000932781
us-gaap:CorporateMember
2023-09-30
0000932781
srt:ConsolidationEliminationsMember
2023-09-30
0000932781
fcco:CommercialAndRetailBankingMember
2022-12-31
0000932781
us-gaap:MortgageBankingMember
2022-12-31
0000932781
fcco:InvestmentAdvisoryAndNonDepositMember
2022-12-31
0000932781
us-gaap:CorporateMember
2022-12-31
0000932781
srt:ConsolidationEliminationsMember
2022-12-31
0000932781
2023-05-05
0000932781
us-gaap:AvailableforsaleSecuritiesMember
2022-12-31
0000932781
us-gaap:HeldtomaturitySecuritiesMember
2022-12-31
0000932781
us-gaap:AvailableforsaleSecuritiesMember
2023-01-01
2023-09-30
0000932781
us-gaap:HeldtomaturitySecuritiesMember
2023-01-01
2023-09-30
0000932781
us-gaap:AvailableforsaleSecuritiesMember
2023-09-30
0000932781
us-gaap:HeldtomaturitySecuritiesMember
2023-09-30
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
xbrli:pure
UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 10-Q
(Mark One)
x |
Quarterly report
pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
for the quarterly period ended September 30, 2023 |
|
|
o |
Transition report
pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
for the transition period from ____ to ____ |
|
|
Commission
File Number: 000-28344
FIRST COMMUNITY CORPORATION |
(Exact
name of registrant as specified in its charter) |
|
South Carolina |
57-1010751 |
(State
or other jurisdiction of incorporation or organization) |
(I.R.S.
Employer Identification No.) |
|
|
5455 Sunset Boulevard, Lexington, South Carolina 29072
(Address
of principal executive offices) (Zip Code)
(803)
951-2265
(Registrant’s
telephone number, including area code)
Not
Applicable
(Former
name, former address and former fiscal year, if changed since last report)
Securities registered pursuant
to Section 12(b) of the Act:
Title
of each class |
Trading
Symbol(s) |
Name
of exchange on which registered |
Common
stock, par value $1.00 per share |
FCCO |
The
Nasdaq Capital Market |
Indicate by check mark whether
the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days. Yes x No
o
Indicate by check mark whether
the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required
to submit such files). x Yes o No
Indicate by check mark whether
the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an
emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller
reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large
accelerated filer o |
|
Accelerated
filer o |
Non-accelerated Filer x |
|
Smaller
reporting company x |
|
|
Emerging
growth company o |
If an emerging growth company,
indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether
the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o
No x
Indicate the number of shares
outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: On November 9, 2023, 7,599,415
shares of the issuer’s common stock, par value $1.00 per share, were issued and outstanding.
TABLE
OF CONTENTS
PART I – FINANCIAL
INFORMATION
Item 1. Financial Statements
FIRST
COMMUNITY CORPORATION
CONSOLIDATED
BALANCE SHEETS
| |
September 30, | | |
| |
(Dollars in thousands, except par values) | |
2023 | | |
December 31, | |
| |
(Unaudited) | | |
2022 | |
ASSETS | |
| | | |
| | |
Cash and due from banks | |
$ | 27,753 | | |
$ | 24,464 | |
Interest-bearing bank balances | |
| 69,703 | | |
| 12,937 | |
Investment securities available-for-sale | |
| 280,549 | | |
| 331,862 | |
Investment securities held-to-maturity, fair value of $198,408 and $213,613 at September 30, 2023 and December 31, 2022, respectively, net of allowance for credit losses - investments | |
| 219,871 | | |
| 228,701 | |
Other investments, at cost | |
| 6,305 | | |
| 4,191 | |
Loans held-for-sale | |
| 5,509 | | |
| 1,779 | |
Loans held-for-investment | |
| 1,091,645 | | |
| 980,857 | |
Less, allowance for credit losses - loans | |
| 11,818 | | |
| 11,336 | |
Net loans held-for-investment | |
| 1,079,827 | | |
| 969,521 | |
Property and equipment - net | |
| 30,927 | | |
| 31,277 | |
Lease right-of-use asset | |
| 3,323 | | |
| 2,702 | |
Bank owned life insurance | |
| 29,982 | | |
| 29,952 | |
Other real estate owned | |
| 666 | | |
| 934 | |
Intangible assets | |
| 643 | | |
| 761 | |
Goodwill | |
| 14,637 | | |
| 14,637 | |
Other assets | |
| 24,027 | | |
| 19,228 | |
Total assets | |
$ | 1,793,722 | | |
$ | 1,672,946 | |
LIABILITIES | |
| | | |
| | |
Deposits: | |
| | | |
| | |
Non-interest bearing | |
$ | 450,737 | | |
$ | 461,010 | |
Interest bearing | |
| 1,041,289 | | |
| 924,372 | |
Total deposits | |
| 1,492,026 | | |
| 1,385,382 | |
Securities sold under agreements to repurchase | |
| 67,173 | | |
| 68,743 | |
Federal funds purchased | |
| — | | |
| 22,000 | |
Federal Home Loan Bank advances | |
| 80,000 | | |
| 50,000 | |
Junior subordinated debt | |
| 14,964 | | |
| 14,964 | |
Lease liability | |
| 3,494 | | |
| 2,832 | |
Other liabilities | |
| 12,464 | | |
| 10,664 | |
Total liabilities | |
| 1,670,121 | | |
| 1,554,585 | |
SHAREHOLDERS’ EQUITY | |
| | | |
| | |
Preferred stock, par value $1.00 per share, 10,000,000 shares authorized; none issued and outstanding | |
| — | | |
| — | |
Common stock, par value $1.00 per share; 20,000,000 shares authorized; issued and outstanding 7,600,023 at September 30, 2023 and 7,577,912 at December 31, 2022 | |
| 7,600 | | |
| 7,578 | |
Nonvested restricted stock and stock units | |
| 1,929 | | |
| 1,461 | |
Additional paid in capital | |
| 93,070 | | |
| 92,683 | |
Retained earnings | |
| 54,059 | | |
| 49,025 | |
Accumulated other comprehensive loss | |
| (33,057 | ) | |
| (32,386 | ) |
Total shareholders’ equity | |
| 123,601 | | |
| 118,361 | |
Total liabilities and shareholders’ equity | |
$ | 1,793,722 | | |
$ | 1,672,946 | |
See Notes
to Consolidated Financial Statements
FIRST
COMMUNITY CORPORATION
CONSOLIDATED
STATEMENTS OF INCOME (Unaudited)
| |
| | |
| |
(Dollars in thousands, except per share amounts) | |
Three Months ended September 30, | |
| |
2023 | | |
2022 | |
Interest and dividend income: | |
| | | |
| | |
Loans, including fees | |
$ | 13,804 | | |
$ | 10,100 | |
Investment securities – taxable | |
| 4,229 | | |
| 2,673 | |
Investment securities - non taxable | |
| 366 | | |
| 385 | |
Other short term investments and CD’s | |
| 335 | | |
| 194 | |
Total interest income | |
| 18,734 | | |
| 13,352 | |
Interest expense: | |
| | | |
| | |
Deposits | |
| 4,777 | | |
| 332 | |
Securities sold under agreement to repurchase | |
| 446 | | |
| 32 | |
Other borrowed money | |
| 1,408 | | |
| 194 | |
Total interest expense | |
| 6,631 | | |
| 558 | |
Net interest income | |
| 12,103 | | |
| 12,794 | |
Provision for credit losses | |
| 474 | | |
| 18 | |
Net interest income after provision for credit losses | |
| 11,629 | | |
| 12,776 | |
Non-interest income: | |
| | | |
| | |
Deposit service charges | |
| 240 | | |
| 243 | |
Mortgage banking income | |
| 508 | | |
| 290 | |
Investment advisory fees and non-deposit commissions | |
| 1,187 | | |
| 1,053 | |
Loss on sale of securities | |
| (1,249 | ) | |
| — | |
Gain on sale of other assets | |
| 46 | | |
| — | |
Other | |
| 1,132 | | |
| 1,087 | |
Total non-interest income | |
| 1,864 | | |
| 2,673 | |
Non-interest expense: | |
| | | |
| | |
Salaries and employee benefits | |
| 6,613 | | |
| 6,373 | |
Occupancy | |
| 776 | | |
| 786 | |
Equipment | |
| 416 | | |
| 331 | |
Marketing and public relations | |
| 609 | | |
| 163 | |
FDIC Insurance assessments | |
| 211 | | |
| 121 | |
Other real estate expense, net | |
| 21 | | |
| 19 | |
Amortization of intangibles | |
| 39 | | |
| 39 | |
Other | |
| 2,588 | | |
| 2,585 | |
Total non-interest expense | |
| 11,273 | | |
| 10,417 | |
Net income before tax | |
| 2,220 | | |
| 5,032 | |
Income tax expense | |
| 464 | | |
| 1,081 | |
Net income | |
$ | 1,756 | | |
$ | 3,951 | |
| |
| | | |
| | |
Basic earnings per common share | |
$ | 0.23 | | |
$ | 0.52 | |
Diluted earnings per common share | |
$ | 0.23 | | |
$ | 0.52 | |
See Notes
to Consolidated Financial Statements
FIRST
COMMUNITY CORPORATION
CONSOLIDATED
STATEMENTS OF INCOME (Unaudited)
| |
| | |
| |
(Dollars in thousands, except per share amounts) | |
Nine Months ended September 30, | |
| |
2023 | | |
2022 | |
Interest and dividend income: | |
| | | |
| | |
Loans, including fees | |
$ | 37,277 | | |
$ | 28,407 | |
Investment securities - taxable | |
| 12,513 | | |
| 6,126 | |
Investment securities - non taxable | |
| 1,109 | | |
| 1,140 | |
Other short term investments and CD’s | |
| 1,222 | | |
| 387 | |
Total interest income | |
| 52,121 | | |
| 36,060 | |
Interest expense: | |
| | | |
| | |
Deposits | |
| 10,162 | | |
| 974 | |
Securities sold under agreement to repurchase | |
| 1,165 | | |
| 79 | |
Other borrowed money | |
| 4,197 | | |
| 429 | |
Total interest expense | |
| 15,524 | | |
| 1,482 | |
Net interest income | |
| 36,597 | | |
| 34,578 | |
Provision for (release of) credit losses | |
| 730 | | |
| (177 | ) |
Net interest income after provision for (release of) credit losses | |
| 35,867 | | |
| 34,755 | |
Non-interest income: | |
| | | |
| | |
Deposit service charges | |
| 692 | | |
| 770 | |
Mortgage banking income | |
| 1,034 | | |
| 1,610 | |
Investment advisory fees and non-deposit commissions | |
| 3,335 | | |
| 3,446 | |
Loss on sale of securities | |
| (1,249 | ) | |
| — | |
Gain (loss) on sale of other assets | |
| 151 | | |
| (45 | ) |
Other | |
| 3,527 | | |
| 3,275 | |
Total non-interest income | |
| 7,490 | | |
| 9,056 | |
Non-interest expense: | |
| | | |
| | |
Salaries and employee benefits | |
| 19,452 | | |
| 18,667 | |
Occupancy | |
| 2,419 | | |
| 2,277 | |
Equipment | |
| 1,129 | | |
| 992 | |
Marketing and public relations | |
| 1,325 | | |
| 970 | |
FDIC Insurance assessments | |
| 614 | | |
| 356 | |
Other real estate expense | |
| (142 | ) | |
| 95 | |
Amortization of intangibles | |
| 118 | | |
| 118 | |
Other | |
| 7,549 | | |
| 7,084 | |
Total non-interest expense | |
| 32,464 | | |
| 30,559 | |
Net income before tax | |
| 10,893 | | |
| 13,252 | |
Income tax expense | |
| 2,347 | | |
| 2,682 | |
Net income | |
$ | 8,546 | | |
$ | 10,570 | |
| |
| | | |
| | |
Basic earnings per common share | |
$ | 1.13 | | |
$ | 1.40 | |
Diluted earnings per common share | |
$ | 1.12 | | |
$ | 1.39 | |
See Notes
to Consolidated Financial Statements
FIRST
COMMUNITY CORPORATION
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
| |
| | |
| |
| |
Three months ended September 30, | |
(Dollars in thousands) | |
2023 | | |
2022 | |
Net income | |
$ | 1,756 | | |
$ | 3,951 | |
Other comprehensive loss: | |
| | | |
| | |
Unrealized loss during the period on available-for-sale securities, net of tax benefit of $768 and tax benefit of $1,881, respectively | |
| (2,891 | ) | |
| (7,078 | ) |
Reclassification adjustment for loss included in net income, net of tax expense of $262 and $0, respectively | |
| 987 | | |
| — | |
Reclassification adjustment for amortization of unrealized losses on securities transferred from available-for-sale to held-to-maturity, net of tax expense of $89 and $98, respectively | |
| 335 | | |
| 370 | |
Other comprehensive loss | |
| (1,569 | ) | |
| (6,708 | ) |
Comprehensive income (loss) | |
$ | 187 | | |
$ | (2,757 | ) |
| |
|
|
|
|
|
| |
| |
Nine months ended September 30, | |
(Dollars in thousands) | |
2023 | | |
2022 | |
Net income | |
$ | 8,546 | | |
$ | 10,570 | |
Other comprehensive loss: | |
| | | |
| | |
Unrealized loss during the period on available-for-sale securities, net of tax benefit of $701 and $6,328, respectively | |
| (2,639 | ) | |
| (23,808 | ) |
Reclassification adjustment for loss included in net income, net of tax expense of $262 and $0, respectively | |
| 987 | | |
| — | |
Unrealized loss during the period on available-for-sale securities transferred to held-to-maturity, net of tax benefit of $0 and $3,509, respectively | |
| — | | |
| (13,198 | ) |
Reclassification adjustment for amortization of unrealized losses on securities transferred from available-for-sale to held-to-maturity, net of tax expense of $261 and $126, respectively | |
| 981 | | |
| 476 | |
Other comprehensive loss | |
| (671 | ) | |
| (36,530 | ) |
Comprehensive income (loss) | |
$ | 7,875 | | |
$ | (25,960 | ) |
See Notes
to Consolidated Financial Statements
FIRST
COMMUNITY CORPORATION
CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
Nine
months ended September 30, 2023 and 2022
(Unaudited)
| |
| | |
| | |
| | |
Nonvested | | |
| | |
Accumulated | | |
| |
| |
Common | | |
| | |
Additional | | |
Restricted | | |
| | |
Other | | |
| |
(Dollars and shares in thousands) | |
Shares | | |
Common | | |
Paid-in | | |
Stock and | | |
Retained | | |
Comprehensive | | |
| |
| |
Issued | | |
Stock | | |
Capital | | |
Stock Units | | |
Earnings | | |
Income (loss) | | |
Total | |
Balance, December 31, 2022 | |
| 7,578 | | |
$ | 7,578 | | |
$ | 92,683 | | |
$ | 1,461 | | |
$ | 49,025 | | |
$ | (32,386 | ) | |
$ | 118,361 | |
Net income | |
| — | | |
| — | | |
| — | | |
| — | | |
| 8,546 | | |
| — | | |
| 8,546 | |
CECL implementation net of tax of $90 | |
| — | | |
| — | | |
| — | | |
| — | | |
| (337 | ) | |
| — | | |
| (337 | ) |
Other comprehensive loss net of tax benefit of $178 | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| (671 | ) | |
| (671 | ) |
Issuance of common stock | |
| 2 | | |
| 2 | | |
| 39 | | |
| (69 | ) | |
| — | | |
| — | | |
| (28 | ) |
Issuance of restricted stock | |
| 8 | | |
| 8 | | |
| 146 | | |
| (154 | ) | |
| — | | |
| — | | |
| — | |
Amortization of compensation on restricted stock | |
| — | | |
| — | | |
| — | | |
| 548 | | |
| — | | |
| — | | |
| 548 | |
Grant restricted stock units | |
| — | | |
| — | | |
| — | | |
| 143 | | |
| — | | |
| — | | |
| 143 | |
Shares forfeited | |
| (6 | ) | |
| (6 | ) | |
| (105 | ) | |
| — | | |
| — | | |
| — | | |
| (111 | ) |
Dividends: Common ($0.42 per share) | |
| — | | |
| — | | |
| — | | |
| — | | |
| (3,175 | ) | |
| — | | |
| (3,175 | ) |
Dividend reinvestment plan | |
| 18 | | |
| 18 | | |
| 307 | | |
| — | | |
| — | | |
| — | | |
| 325 | |
Balance, September 30, 2023 | |
| 7,600 | | |
$ | 7,600 | | |
$ | 93,070 | | |
$ | 1,929 | | |
$ | 54,059 | | |
$ | (33,057 | ) | |
$ | 123,601 | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| |
| | |
| | |
| | |
| | |
| | |
Accumulated | | |
| |
| |
Common | | |
| | |
Additional | | |
Nonvested | | |
| | |
Other | | |
| |
(Dollars and shares in thousands) | |
Shares | | |
Common | | |
Paid-in | | |
Restricted | | |
Retained | | |
Comprehensive | | |
| |
| |
Issued | | |
Stock | | |
Capital | | |
Stock | | |
Earnings | | |
Income (loss) | | |
Total | |
Balance, December 31, 2021 | |
| 7,549 | | |
$ | 7,549 | | |
$ | 92,139 | | |
$ | (294 | ) | |
$ | 38,325 | | |
$ | 3,279 | | |
$ | 140,998 | |
Net income | |
| — | | |
| — | | |
| — | | |
| — | | |
| 10,570 | | |
| — | | |
| 10,570 | |
Other comprehensive loss net of tax benefit of $9,711 | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| (36,530 | ) | |
| (36,530 | ) |
Issuance of common stock | |
| 1 | | |
| 1 | | |
| 27 | | |
| — | | |
| — | | |
| — | | |
| 28 | |
Issuance of restricted stock | |
| 9 | | |
| 9 | | |
| 190 | | |
| (199 | ) | |
| — | | |
| — | | |
| — | |
Amortization of compensation on restricted stock | |
| — | | |
| — | | |
| — | | |
| 323 | | |
| — | | |
| — | | |
| 323 | |
Grant restricted stock units | |
| — | | |
| — | | |
| — | | |
| 1,448 | | |
| — | | |
| — | | |
| 1,448 | |
Shares forfeited | |
| (2 | ) | |
| (2 | ) | |
| (40 | ) | |
| — | | |
| — | | |
| — | | |
| (42 | ) |
Dividends: Common ($0.39 per share) | |
| — | | |
| — | | |
| — | | |
| — | | |
| (2,934 | ) | |
| — | | |
| (2,934 | ) |
Dividend reinvestment plan | |
| 16 | | |
| 16 | | |
| 268 | | |
| — | | |
| — | | |
| — | | |
| 284 | |
Balance, September 30, 2022 | |
| 7,573 | | |
$ | 7,573 | | |
$ | 92,584 | | |
$ | 1,278 | | |
$ | 45,961 | | |
$ | (33,251 | ) | |
$ | 114,145 | |
See Notes
to Consolidated Financial Statements
FIRST
COMMUNITY CORPORATION
CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
| |
| | |
| | |
| | |
Nonvested | | |
| | |
Accumulated | | |
| |
| |
Common | | |
| | |
Additional | | |
Restricted | | |
| | |
Other | | |
| |
| |
Shares | | |
Common | | |
Paid-in | | |
Stock and | | |
Retained | | |
Comprehensive | | |
| |
(Dollars in thousands) | |
Issued | | |
Stock | | |
Capital | | |
Stock Units | | |
Earnings | | |
Income (loss) | | |
Total | |
Balance, December 31, 2022 | |
| 7,578 | | |
$ | 7,578 | | |
$ | 92,683 | | |
$ | 1,461 | | |
$ | 49,025 | | |
$ | (32,386 | ) | |
$ | 118,361 | |
Net income | |
| — | | |
| — | | |
| — | | |
| — | | |
| 3,463 | | |
| — | | |
| 3,463 | |
Adoption of CECL, net of tax | |
| — | | |
| — | | |
| — | | |
| — | | |
| (337 | ) | |
| — | | |
| (337 | ) |
Other comprehensive income, net of tax expense | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| 2,913 | | |
| 2,913 | |
Issuance of common stock | |
| 2 | | |
| 2 | | |
| 39 | | |
| (69 | ) | |
| — | | |
| — | | |
| (28 | ) |
Issuance of restricted stock | |
| 8 | | |
| 8 | | |
| 146 | | |
| (154 | ) | |
| — | | |
| — | | |
| — | |
Grant restricted stock units | |
| — | | |
| — | | |
| — | | |
| 72 | | |
| — | | |
| — | | |
| 72 | |
Amortization of compensation on restricted stock | |
| — | | |
| — | | |
| — | | |
| 191 | | |
| — | | |
| — | | |
| 191 | |
Shares forfeited | |
| (5 | ) | |
| (5 | ) | |
| (100 | ) | |
| — | | |
| — | | |
| — | | |
| (105 | ) |
Dividends: Common ($0.13 per share) | |
| — | | |
| — | | |
| — | | |
| — | | |
| (1,057 | ) | |
| — | | |
| (1,057 | ) |
Dividend reinvestment plan | |
| 5 | | |
| 5 | | |
| 103 | | |
| — | | |
| — | | |
| — | | |
| 108 | |
Balance, March 31, 2023 | |
| 7,588 | | |
$ | 7,588 | | |
$ | 92,871 | | |
$ | 1,501 | | |
$ | 51,094 | | |
$ | (29,473 | ) | |
$ | 123,581 | |
Net income | |
| — | | |
| — | | |
| — | | |
| — | | |
| 3,327 | | |
| — | | |
| 3,327 | |
Other comprehensive income net of tax benefit of $536 | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| (2,015 | ) | |
| (2,015 | ) |
Amortization of compensation on restricted stock | |
| — | | |
| — | | |
| — | | |
| 179 | | |
| — | | |
| — | | |
| 179 | |
Grant restricted stock units | |
| — | | |
| — | | |
| — | | |
| 37 | | |
| — | | |
| — | | |
| 37 | |
Shares forfeited | |
| — | | |
| — | | |
| (5 | ) | |
| — | | |
| — | | |
| — | | |
| (5 | ) |
Dividends: Common ($0.14 per share) | |
| — | | |
| — | | |
| — | | |
| — | | |
| (1,059 | ) | |
| — | | |
| (1,059 | ) |
Dividend reinvestment plan | |
| 6 | | |
| 6 | | |
| 97 | | |
| — | | |
| — | | |
| — | | |
| 103 | |
Balance, June 30, 2023 | |
| 7,594 | | |
$ | 7,594 | | |
$ | 92,963 | | |
$ | 1,717 | | |
$ | 53,362 | | |
$ | (31,488 | ) | |
$ | 124,148 | |
Net income | |
| — | | |
| — | | |
| — | | |
| — | | |
| 1,756 | | |
| — | | |
| 1,756 | |
Other comprehensive loss net of tax benefit of $417 | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| (1,569 | ) | |
| (1,569 | ) |
Amortization of compensation on restricted stock | |
| — | | |
| — | | |
| — | | |
| 178 | | |
| — | | |
| — | | |
| 178 | |
Grant restricted stock units | |
| — | | |
| — | | |
| — | | |
| 34 | | |
| — | | |
| — | | |
| 34 | |
Dividends: Common ($0.14 per share) | |
| — | | |
| — | | |
| — | | |
| — | | |
| (1,059 | ) | |
| — | | |
| (1,059 | ) |
Dividend reinvestment plan | |
| 6 | | |
| 6 | | |
| 107 | | |
| — | | |
| — | | |
| — | | |
| 113 | |
Balance, September 30, 2023 | |
| 7,600 | | |
$ | 7,600 | | |
$ | 93,070 | | |
$ | 1,929 | | |
$ | 54,059 | | |
$ | (33,057 | ) | |
| 123,601 | |
See Notes
to Consolidated Financial Statements
FIRST
COMMUNITY CORPORATION
CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
| |
| | |
| | |
| | |
Nonvested | | |
| | |
Accumulated | | |
| |
| |
Common | | |
| | |
Additional | | |
Restricted | | |
| | |
Other | | |
| |
(Dollars in thousands) | |
Shares | | |
Common | | |
Paid-in | | |
Stock and | | |
Retained | | |
Comprehensive | | |
| |
| |
Issued | | |
Stock | | |
Capital | | |
Stock Units | | |
Earnings | | |
Income (loss) | | |
Total | |
Balance, December 31, 2021 | |
| 7,549 | | |
$ | 7,549 | | |
$ | 92,139 | | |
$ | (294 | ) | |
$ | 38,325 | | |
$ | 3,279 | | |
$ | 140,998 | |
Net income | |
| — | | |
| — | | |
| — | | |
| — | | |
| 3,489 | | |
| — | | |
| 3,489 | |
Other comprehensive loss net of tax benefit of $4,862 | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| (18,288 | ) | |
| (18,288 | ) |
Issuance of common stock | |
| 1 | | |
| 1 | | |
| 27 | | |
| — | | |
| — | | |
| — | | |
| 28 | |
Issuance of restricted stock | |
| 7 | | |
| 7 | | |
| 147 | | |
| (154 | ) | |
| — | | |
| — | | |
| — | |
Amortization of compensation on restricted stock | |
| — | | |
| — | | |
| — | | |
| 79 | | |
| — | | |
| — | | |
| 79 | |
Shares forfeited | |
| (2 | ) | |
| (2 | ) | |
| (40 | ) | |
| — | | |
| — | | |
| — | | |
| (42 | ) |
Dividends: Common ($0.13 per share) | |
| — | | |
| — | | |
| — | | |
| — | | |
| (977 | ) | |
| — | | |
| (977 | ) |
Dividend reinvestment plan | |
| 5 | | |
| 5 | | |
| 88 | | |
| — | | |
| — | | |
| — | | |
| 93 | |
Balance, March 31, 2022 | |
| 7,560 | | |
$ | 7,560 | | |
$ | 92,361 | | |
$ | (369 | ) | |
$ | 40,837 | | |
$ | (15,009 | ) | |
$ | 125,380 | |
Net income | |
| — | | |
| — | | |
| — | | |
| — | | |
| 3,130 | | |
| — | | |
| 3,130 | |
Other comprehensive loss net of tax benefit of $3,066 | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| (11,534 | ) | |
| (11,534 | ) |
Issuance of restricted stock | |
| 2 | | |
| 2 | | |
| 43 | | |
| (45 | ) | |
| — | | |
| — | | |
| — | |
Amortization of compensation on restricted stock | |
| — | | |
| — | | |
| — | | |
| 89 | | |
| — | | |
| — | | |
| 89 | |
Stock units | |
| — | | |
| — | | |
| — | | |
| 1,418 | | |
| — | | |
| — | | |
| 1,418 | |
Dividends: Common ($0.13 per share) | |
| — | | |
| — | | |
| — | | |
| — | | |
| (979 | ) | |
| — | | |
| (979 | ) |
Dividend reinvestment plan | |
| 5 | | |
| 5 | | |
| 83 | | |
| — | | |
| — | | |
| — | | |
| 88 | |
Balance, June 30, 2022 | |
| 7,567 | | |
$ | 7,567 | | |
$ | 92,487 | | |
$ | 1,093 | | |
$ | 42,988 | | |
$ | (26,543 | ) | |
$ | 117,592 | |
Net income | |
| — | | |
| — | | |
| — | | |
| — | | |
| 3,951 | | |
| — | | |
| 3,951 | |
Other comprehensive loss net of tax benefit of $1,783 | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| (6,708 | ) | |
| (6,708 | ) |
Amortization of compensation on restricted stock | |
| — | | |
| — | | |
| — | | |
| 155 | | |
| — | | |
| — | | |
| 155 | |
Grant restricted stock units | |
| — | | |
| — | | |
| — | | |
| 30 | | |
| — | | |
| — | | |
| 30 | |
Dividends: Common ($0.13 per share) | |
| — | | |
| — | | |
| — | | |
| — | | |
| (978 | ) | |
| — | | |
| (978 | ) |
Dividend reinvestment plan | |
| 6 | | |
| 6 | | |
| 97 | | |
| — | | |
| — | | |
| — | | |
| 103 | |
Balance, September 30, 2022 | |
| 7,573 | | |
$ | 7,573 | | |
$ | 92,584 | | |
$ | 1,278 | | |
$ | 45,961 | | |
$ | (33,251 | ) | |
| 114,145 | |
See Notes
to Consolidated Financial Statements
FIRST
COMMUNITY CORPORATION
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
| |
| | |
| |
| |
Nine months ended September 30, | |
(Dollars in thousands) | |
2023 | | |
2022 | |
Cash flows from operating activities: | |
| | | |
| | |
Net income | |
$ | 8,546 | | |
$ | 10,570 | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |
| | | |
| | |
Depreciation | |
| 1,317 | | |
| 1,268 | |
Net premium amortization on investment securities available-for-sale | |
| (1,754 | ) | |
| 2,007 | |
Net premium amortization on investment securities held-to-maturity | |
| (422 | ) | |
| (107 | ) |
Provision for (release of) for credit losses | |
| 730 | | |
| (177 | ) |
Write-downs of other real estate owned | |
| — | | |
| 19 | |
Origination of loans held-for-sale | |
| (36,003 | ) | |
| (54,858 | ) |
Sale of loans held-for-sale | |
| 32,273 | | |
| 60,220 | |
(Gain) loss on sale of other real estate owned | |
| (151 | ) | |
| 45 | |
Amortization of intangibles | |
| 118 | | |
| 118 | |
Accretion on acquired loans | |
| (61 | ) | |
| (34 | ) |
Loss on sale of securities | |
| 1,249 | | |
| — | |
Loss on fair value of equity securities | |
| 2 | | |
| — | |
Increase in other assets | |
| (3,942 | ) | |
| (1,065 | ) |
Increase (decrease) in other liabilities | |
| 1,815 | | |
| (234 | ) |
Net cash provided by operating activities | |
| 3,717 | | |
| 17,772 | |
Cash flows from investing activities: | |
| | | |
| | |
Purchase of investment securities available-for-sale | |
| (6,025 | ) | |
| (105,943 | ) |
Purchase of investment securities held-to-maturity | |
| — | | |
| (11,270 | ) |
Purchase of other investment securities | |
| (2,114 | ) | |
| (144 | ) |
Maturity/call of investment securities available-for-sale | |
| 17,089 | | |
| 54,669 | |
Maturity/call of investment securities held-to-maturity | |
| 9,219 | | |
| 6,989 | |
Proceeds from sale of securities available-for-sale | |
| 38,662 | | |
| — | |
Increase in loans | |
| (110,722 | ) | |
| (86,161 | ) |
Proceeds from sale of other real estate owned | |
| 419 | | |
| 117 | |
Proceeds from sale of fixed assets | |
| — | | |
| 301 | |
Purchase of property and equipment | |
| (966 | ) | |
| (638 | ) |
Net disposal of property and equipment | |
| — | | |
| 24 | |
Net cash used in investing activities | |
| (54,438 | ) | |
| (142,056 | ) |
Cash flows from financing activities: | |
| | | |
| | |
Increase in deposit accounts | |
| 106,644 | | |
| 74,965 | |
(Decrease) increase in securities sold under agreements to repurchase | |
| (1,570 | ) | |
| 19,443 | |
Decrease in Fed Funds Purchased | |
| (22,000 | ) | |
| — | |
Advances from the Federal Home Loan Bank | |
| 269,000 | | |
| — | |
Repayment of advances from the Federal Home Loan Bank | |
| (239,000 | ) | |
| — | |
Shares retired / forfeited | |
| (111 | ) | |
| (42 | ) |
Dividends paid: Common Stock | |
| (3,175 | ) | |
| (2,934 | ) |
Restricted Stock Units Granted | |
| 143 | | |
| 1,448 | |
Proceeds from issuance of stock-based compensation, new issuance of common stock | |
| (28 | ) | |
| 28 | |
Change in non-vested restricted stock | |
| 548 | | |
| 323 | |
Dividend reinvestment plan | |
| 325 | | |
| 284 | |
Net cash provided by financing activities | |
| 110,776 | | |
| 93,515 | |
Net increase (decrease) in cash and cash equivalents | |
| 60,055 | | |
| (30,769 | ) |
Cash and cash equivalents at beginning of period | |
| 37,401 | | |
| 69,022 | |
Cash and cash equivalents at end of period | |
$ | 97,456 | | |
$ | 38,253 | |
Supplemental disclosure: | |
| | | |
| | |
Cash paid during the period for: | |
| | | |
| | |
Interest | |
$ | 13,469 | | |
$ | 1,552 | |
Income taxes | |
$ | 3,459 | | |
$ | 2,748 | |
Non-cash investing and financing activities: | |
| | | |
| | |
Unrealized gain (loss) on available-for-sale securities, net of tax | |
$ | (1,652 | ) | |
$ | (23,808 | ) |
Amortization of unrealized losses on securities from transfer of available-for-sale securities to held-to-maturity, net of tax | |
| 981 | | |
| 476 | |
Recognition of operating lease liability | |
| 825 | | |
| — | |
Transfer of investment securities available-for-sale to held-to-maturity | |
| — | | |
| 245,619 | |
| |
| | | |
| | |
See Notes
to Consolidated Financial Statements
Notes to Consolidated Financial
Statements (Unaudited)
Note 1 - Nature of Business
and Basis of Presentation
Basis of Presentation
In the opinion of management,
the accompanying unaudited consolidated balance sheets, and the consolidated statements of income, comprehensive income, changes
in shareholders’ equity, and cash flows of First Community Corporation (the “Company”) and its wholly owned
subsidiary, First Community Bank (the “Bank”) (collectively, the “Company”) present fairly in all material
respects the Company’s financial position at September 30, 2023 and December 31, 2022, and the Company’s results of
operations for the three and nine months ended September 30, 2023 and 2022, and cash flows for the nine months ended September
30, 2023 and 2022. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative
of the results that may be expected for the year ending December 31, 2023.
In the opinion of management,
all adjustments necessary to fairly present the consolidated financial position and consolidated results of operations have been
made. All such adjustments are of a normal, recurring nature. All significant intercompany accounts and transactions have been
eliminated in consolidation. The consolidated financial statements and notes thereto are presented in accordance with the instructions
for Quarterly Reports on Form 10-Q. The information included in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2022 should be referred to in connection with these unaudited interim financial statements.
Application of New Accounting
Guidance Adopted in 2023
On January 1, 2023, the Company
adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,
which replaced the incurred loss methodology that delayed recognition until it is probable a loss has been incurred with an expected
loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of
expected losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables
and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan
commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized
by a lessor in accordance with Topic 842 on leases. Additionally, Accounting Standards Codification (“ASC”) 326 made
changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented
as an allowance rather than a write-down on available-for-sale debt securities management does not intend to sell or believes
that it is more likely than not they will be required to sell.
The Company adopted ASC 326
and all related subsequent amendments thereto effective January 1, 2023 using the modified retrospective approach for all financial
assets measured at amortized cost and off-balance sheet credit exposures. The transition adjustment of the adoption of CECL included
a decrease in the allowance for credit losses on loans of $14,300, which is presented as a reduction to net loans outstanding,
and an increase in the allowance for credit losses on unfunded loan commitments of $397,900, which is recorded within Other Liabilities.
The Company recorded an allowance for credit losses for held to maturity securities of $43,500, which is presented as a reduction
to held to maturity securities outstanding. The Company recorded a net decrease to retained earnings of $337,400 as of January
1, 2023 for the cumulative effect of adopting CECL, which reflects the transition adjustments noted above, net of the applicable
deferred tax assets recorded. Results for reporting periods beginning after January 1, 2023 are presented under CECL while prior
period amounts continue to be reported in accordance with previously applicable accounting standards (“Incurred Loss”).
The Company adopted ASC 326
using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior
to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired available-for-sale investment
securities. Therefore, upon adoption of ASC 326, the Company determined that an allowance for credit losses on available-for-sale
securities was not deemed material.
The following table illustrates
the impact on the allowance for credit losses (“ACL”) from the adoption of ASC 326:
Schedule of impact on the allowance for credit losses from the adoption of ASC 326
(Dollars in thousands) | |
January 1, 2023 As Reported Under ASC 326 | | |
December 31, 2022 Pre-ASC 326 Adoption December | | |
Impact of ASC 326 Adoption | |
Assets: | |
| | | |
| | | |
| | |
Held to maturity securities, at amortized cost | |
$ | 106,929 | | |
$ | 106,929 | | |
$ | — | |
| |
| | | |
| | | |
| | |
Allowance for credit losses on held to maturity securities: | |
| | | |
| | | |
| | |
State and local governments | |
| 43 | | |
| — | | |
| 43 | |
Allowance for credit losses on held-to-maturity securities | |
$ | 43 | | |
$ | — | | |
$ | 43 | |
| |
| | | |
| | | |
| | |
Loans, at amortized cost | |
$ | 980,857 | | |
$ | 980,857 | | |
$ | — | |
| |
| | | |
| | | |
| | |
Allowance for credit losses on loans: | |
| | | |
| | | |
| | |
Commercial | |
| 1,042 | | |
| 849 | | |
| 193 | |
Real Estate Construction | |
| 1,150 | | |
| 75 | | |
| 1,075 | |
Real Estate Mortgage Residential | |
| 755 | | |
| 723 | | |
| 32 | |
Real Estate Mortgage Commercial | |
| 7,686 | | |
| 8,569 | | |
| (883 | ) |
Consumer Home Equity | |
| 480 | | |
| 314 | | |
| 166 | |
Consumer Other | |
| 209 | | |
| 170 | | |
| 39 | |
Unallocated | |
| — | | |
| 636 | | |
| (636 | ) |
Allowance for credit losses on loans | |
$ | 11,322 | | |
$ | 11,336 | | |
$ | (14 | ) |
| |
| | | |
| | | |
| | |
Liabilities: | |
| | | |
| | | |
| | |
Allowance for credit losses for unfunded commitments | |
$ | 398 | | |
$ | — | | |
$ | 398 | |
The Company elected not to
measure an allowance for credit losses for accrued interest receivable and instead elected to reverse interest income on loans
or securities that are placed on non-accrual status, which is generally when the instrument is 90 days past due, or earlier if
the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely
reversal of uncollectible interest.
Allowance for Credit
Losses on Held-to-Maturity Securities
Management measures expected
credit losses on held-to-maturity debt securities on a collective basis by major security type. Accrued interest receivable on
held-to-maturity debt securities totaled $1.2 million at September 30, 2023 and was excluded from the estimate of credit losses.
The held-to-maturity portfolio consists of mortgage-backed and municipal securities. Securities are generally rated BBB- or higher.
Securities are analyzed individually to establish a CECL reserve.
The estimate of expected credit
losses is primarily based on the ratings assigned to the securities by debt rating agencies and the average of the annual historical
loss rates associated with those ratings. The Company then multiplies those loss rates, as adjusted for any modifications to reflect
current conditions and reasonable and supportable forecasts as considered necessary, by the remaining lives of each individual
security to arrive at a lifetime expected loss amount. Management classifies the held-to-maturity portfolio into the following
major security types: mortgage-backed securities or state and local governments.
All the mortgage-backed securities
(“MBS”) held by the Company are issued by government-sponsored corporations. These securities are either explicitly
or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit
losses. As a result, no allowance for credit losses was recorded on held-to-maturity MBS at the adoption of CECL or as of September
30, 2023. The state and local governments securities held by the Company are highly rated by major rating agencies.
Allowance for Credit
Losses on Available-for-Sale Securities
For available-for-sale securities,
management evaluates all investments in an unrealized loss position on a quarterly basis, or more frequently when economic or
market conditions warrant such evaluation. If the Company has the intent to sell the security or it is more likely than not that
the Company will be required to sell the security, the security is written down to fair value and the entire loss is recorded
in earnings.
If either of the above criteria
is not met, the Company evaluates whether the decline in fair value is the result of credit losses or other factors. In making
the assessment, the Company may consider various factors including the extent to which fair value is less than amortized cost,
performance on any underlying collateral, downgrades in the ratings of the security by a rating agency, the failure of the issuer
to make scheduled interest or principal payments and adverse conditions specifically related to the security. If the assessment
indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost
basis of the security and any excess is recorded as an allowance for credit loss, limited by the amount that the fair value is
less than the amortized cost basis. Any amount of unrealized loss that has not been recorded through an allowance for credit loss
is recognized in other comprehensive income.
Changes in the allowance for
credit loss are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance for credit
loss when management believes an available-for-sale security is confirmed to be uncollectible or when either of the criteria regarding
intent or requirement to sell is met. At September 30, 2023, there was no allowance for credit loss related to the available-for-sale
securities portfolio.
Accrued interest receivable
on available-for-sale securities totaled $840,000 at September 30, 2023 and was excluded from the estimate of credit losses.
Loans
Loans that management has
the intent and ability to hold for the foreseeable future, until maturity, or payoff are reported at amortized cost. Amortized
cost is the principal balance outstanding, net of purchase premiums and discounts and deferred fees and costs. Accrued interest
receivable related to loans totaled $3.3 million at September 30, 2023 and was reported in other assets on the consolidated balance
sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs,
are deferred and recognized in interest income using methods that approximate a level yield without anticipating prepayments.
The accrual of interest is
generally discontinued when a loan becomes 90 days past due and is not well collateralized and in the process of collection, or
when management believes, after considering economic and business conditions and collection efforts, that the principal or interest
will not be collectible in the normal course of business. Past due status is based on contractual terms of the loan. A loan is
considered to be past due when a scheduled payment has not been received 30 days after the contractual due date.
All accrued interest is reversed
against interest income when a loan is placed on non-accrual status. Interest received on such loans is accounted for using the
cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized
until the loan balance is reduced to zero. Loans are returned to accrual status when all the principal and interest amounts contractually
due are brought current, there is a sustained period of repayment performance, and future payments are reasonably assured.
Allowance for Credit
Losses - Loans
The allowance for credit losses
is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected
on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed.
Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Accrued interest
receivable is excluded from the estimate of credit losses.
The allowance for credit losses
represents management’s estimate of lifetime credit losses inherent in loans as of the balance sheet date. The allowance
for credit losses is estimated by management using relevant available information, from both internal and external sources, relating
to past events, current conditions, and reasonable and supportable forecasts. The Company measures expected credit losses for
loans on a pooled basis when similar risk characteristics exist. Generally, collectively assessed loans are grouped by call report
code and then by risk grade grouping. Risk grade is grouped within each call report code by pass, watch, special mention, substandard,
and doubtful. Other loan types are separated into their own cohorts due to specific risk characteristics for that pool of loans.
The Company has elected a
non-discounted cash flow methodology with probability of default (“PD”) and loss given default (“LGD”)
for all call report code cohorts (“cohorts”). The PD calculation looks at the historical loan portfolio at particular
points in time (each month during the lookback period) to determine the probability that loans in a certain cohort will default
over the next 12-month period. A default is defined as a loan that has moved to past due 90 days and greater, non-accrual status,
or experienced a charge-off during the period. Currently, the Company’s historical data is insufficient due to a minimal
amount of default activity or zero defaults, therefore, management uses index PDs comprised of rates derived from the PD experience
of other community banks in place of the Company’s historical PDs.
The LGD calculation looks
at actual losses (net charge-offs) experienced over the entire lookback period for each cohort of loans. The aggregate loss amount
is divided by the exposure at default to determine an LGD rate. All defaults (non-accrual, charge-off, or greater than 90 days
past due) occurring during the lookback period are included in the denominator, whether a loss occurred or not and exposure at
default is determined by the loan balance immediately preceding the default event (i.e., non-accrual or charge-off). Due to very
limited charge-off history, management uses index LGDs comprised of rates derived from the LGD experience of other community banks
in place of the Company’s historical LGDs.
The Company utilizes reasonable
and supportable forecasts of future economic conditions when estimating the allowance for credit losses on loans. The calculation
includes a 12-month PD forecast based on the peer index regression model comparing peer defaults to the national unemployment
rate. After the forecast period, PD rates revert on a straight-line basis back to long-term historical average rates over a 12-month
period.
The Company recognizes that
all significant factors that affect the collectability of the loan portfolio must be considered to determine the estimated credit
losses as of the evaluation date. Furthermore, the methodology, in and of itself and even when selectively adjusted by comparison
to market and peer data, does not provide a sufficient basis to determine the estimated credit losses. The Company adjusts the
modeled historical losses by qualitative adjustments to incorporate all significant risks to form a sufficient basis to estimate
the credit losses. These qualitative adjustments may increase or reduce reserve levels and include adjustments for lending management
experience, loan review and audit results, asset quality and portfolio trends, loan portfolio growth and concentrations, trends
in underlying collateral, as well as external factors and economic conditions not already captured.
Loans that do not share risk
characteristics are evaluated on an individual basis. Generally, this population includes loan relationships exceeding $500,000
and on non-accrual status, however they can also include any loan that does not share risk characteristics with its respective
pool. When management determines that foreclosure is probable and the borrower is experiencing financial difficulty, the expected
credit losses are based on the fair value of collateral at the reporting date unadjusted for selling costs as appropriate. When
the expected source of repayment is from a source other than the underlying collateral, impairment will generally be measured
based upon the present value of expected proceeds discounted at the contractual interest rate.
Allowance for Credit
Losses on Unfunded Commitments
Financial instruments include
off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit issued to meet customer
financing needs. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial
instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial
instruments are recorded when they are funded.
The Company records an allowance
for credit losses on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable,
through a charge to provision for unfunded commitments in the Company’s income statements. The allowance for credit losses
on off-balance sheet credit exposures is estimated by loan cohort at each balance sheet date under the current expected credit
loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur as
well as any third-party guarantees. The allowance for unfunded commitments is included in other liabilities on the Company’s
consolidated balance sheets.
Recently Issued Accounting
Pronouncements
The following is a summary
of recent authoritative pronouncements:
In March 2022, the FASB issued
amendments which are intended to improve the decision usefulness of information provided to investors about certain loan refinancings,
restructurings, and write-offs. The amendments were effective for fiscal years beginning after December 15, 2022, including interim
periods within those fiscal years. The Company has adopted these amendments which did not have a material effect on the Company’s
financial statements or disclosures.
Other accounting standards
that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on
the Company’s financial position, results of operations or cash flows.
Note 2 - Earnings Per
Common Share
Basic earnings per share is
calculated by dividing net income by the weighted-average shares of common stock outstanding during the period, excluding non-vested
restricted shares. Dilutive earnings per share is calculated by dividing net income by the weighted-average shares of common stock
outstanding during the period plus the maximum dilutive effect on common stock issuable upon exercise of stock options or vesting
of restricted stock units. Stock options and unvested restricted stock units are considered common stock equivalents and are only
included in the calculation of dilutive earnings per common share if the effect is dilutive.
The following reconciles the
numerator and denominator of the basic and diluted earnings per common share computation:
Schedule
of Earning Per Common Share
| |
| | |
| | |
| | |
| |
| |
Nine months | | |
Three months | |
| |
Ended September 30, | | |
Ended September 30, | |
(In thousands except average market price and per share data) | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Numerator (Net income available to common shareholders) | |
$ | 8,546 | | |
$ | 10,570 | | |
$ | 1,756 | | |
$ | 3,951 | |
Denominator | |
| | | |
| | | |
| | | |
| | |
Weighted average common shares outstanding for: | |
| | | |
| | | |
| | | |
| | |
Basic shares | |
| 7,564 | | |
| 7,525 | | |
| 7,573 | | |
| 7,531 | |
Dilutive securities: | |
| | | |
| | | |
| | | |
| | |
Deferred compensation | |
| 27 | | |
| 29 | | |
| 22 | | |
| 24 | |
Restricted stock – Treasury stock method | |
| 58 | | |
| 49 | | |
| 60 | | |
| 53 | |
Diluted shares | |
| 7,649 | | |
| 7,603 | | |
| 7,655 | | |
| 7,608 | |
Earnings per common share: | |
| | | |
| | | |
| | | |
| | |
Basic | |
| 1.13 | | |
| 1.40 | | |
| 0.23 | | |
| 0.52 | |
Diluted | |
| 1.12 | | |
| 1.39 | | |
| 0.23 | | |
| 0.52 | |
The average market price used in calculating assumed number of shares | |
$ | 18.83 | | |
$ | 19.53 | | |
$ | 17.80 | | |
$ | 18.11 | |
| |
| | | |
| | | |
| | | |
| | |
Note 3 - Investment
Securities
The amortized cost and estimated
fair values of investment securities are summarized below. For the three and nine months ended September 30, 2023, there was no
allowance for credit losses on available-for-sale securities.
AVAILABLE-FOR-SALE:
Schedule of Investment Available-For-Sale
| |
| | |
Gross | | |
Gross | | |
| |
| |
Amortized | | |
Unrealized | | |
Unrealized | | |
| |
(Dollars in thousands) | |
Cost | | |
Gains | | |
Losses | | |
Fair Value | |
September 30, 2023 | |
| | | |
| | | |
| | | |
| | |
US Treasury securities | |
$ | 20,773 | | |
$ | — | | |
$ | (3,223 | ) | |
$ | 17,550 | |
Small Business Administration pools | |
| 17,157 | | |
| 26 | | |
| (562 | ) | |
| 16,621 | |
Corporate and other securities | |
| 8,759 | | |
| — | | |
| (979 | ) | |
| 7,780 | |
Total | |
$ | 307,964 | | |
$ | 29 | | |
$ | (27,444 | ) | |
$ | 280,549 | |
| |
| | | |
| | | |
| | | |
| | |
| |
| | |
Gross | | |
Gross | | |
| |
| |
Amortized | | |
Unrealized | | |
Unrealized | | |
| |
(Dollars in thousands) | |
Cost | | |
Gains | | |
Losses | | |
Fair Value | |
December 31, 2022 | |
| | | |
| | | |
| | | |
| | |
US Treasury securities | |
$ | 60,552 | | |
$ | — | | |
$ | (4,569 | ) | |
$ | 55,983 | |
Small Business Administration pools | |
| 21,657 | | |
| 60 | | |
| (630 | ) | |
| 21,087 | |
Corporate and other securities | |
| 8,772 | | |
| 12 | | |
| (666 | ) | |
| 8,118 | |
Total | |
$ | 357,185 | | |
$ | 82 | | |
$ | (25,405 | ) | |
$ | 331,862 | |
HELD-TO-MATURITY:
Debt Securities, Held-to-Maturity
| |
| | |
Gross | | |
Gross | | |
| |
| |
Amortized | | |
Unrealized | | |
Unrealized | | |
| |
(Dollars in thousands) | |
Cost | | |
Gains | | |
Losses | | |
Fair Value | |
September 30, 2023 | |
| | | |
| | | |
| | | |
| | |
State and local government | |
| 105,412 | | |
| — | | |
| (8,999 | ) | |
| 96,413 | |
Total | |
$ | 219,871 | | |
$ | — | | |
$ | (21,463 | ) | |
$ | 198,408 | |
| |
| | | |
| | | |
| | | |
| | |
(Dollars in thousands) | |
Amortized Cost | | |
Gross Unrealized Gains | | |
Gross Unrealized Losses | | |
Fair Value | |
December 31, 2022 | |
| | | |
| | | |
| | | |
| | |
State and local government | |
| 106,929 | | |
| — | | |
| (6,432 | ) | |
| 100,497 | |
Total | |
$ | 228,701 | | |
|