First Community Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>First Community Corp. has filed its 2023 10-K report detailing its financial performance and operations.</b>

AI Summary

FIRST COMMUNITY CORP /SC/ (FCCO) filed a Annual Report (10-K) with the SEC on March 21, 2024. First Community Corp. filed its annual report for the fiscal year ending December 31, 2023. The company is incorporated in South Carolina (SC) and operates under SIC code 6022 (Commercial Banks). The filing was made on March 21, 2024. The report covers the fiscal year from January 1, 2023, to December 31, 2023. Key financial statement periods covered include 2023, 2022, and 2021.

Why It Matters

For investors and stakeholders tracking FIRST COMMUNITY CORP /SC/, this filing contains several important signals. This 10-K filing provides a comprehensive overview of First Community Corp.'s financial health, operational activities, and strategic positioning for the fiscal year 2023. Investors and analysts can use this report to assess the company's performance, identify potential risks, and make informed investment decisions regarding FCCO.

Risk Assessment

Risk Level: — FIRST COMMUNITY CORP /SC/ shows moderate risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate, significant negative news or disclosures that would suggest a high-risk profile based solely on this document.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand First Community Corp.'s performance and outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Report period)
• 2024-03-21 — Filing Date (Date of submission)
• 143 — Document Count (Number of documents in the filing)

Key Players & Entities

• FIRST COMMUNITY CORP /SC/ (company) — Filer name
• FCCO (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-03-21 (date) — Filing date
• SC (location) — State of incorporation
• 6022 (industry_code) — Standard Industrial Classification

FAQ

Industry Context

First Community Corp. operates within the commercial banking sector, as indicated by its SIC code 6022. This sector is characterized by its role in financial intermediation, lending, and deposit-taking activities.

Regulatory Implications

As a commercial bank, First Community Corp. is subject to extensive regulation by federal and state authorities to ensure financial stability and protect consumers. The 10-K filing adheres to the disclosure requirements mandated by the Securities and Exchange Commission (SEC) under the 1934 Act.

What Investors Should Do

1. Analyze the financial statements for trends in assets, liabilities, and equity over the past three fiscal years.
2. Examine the business description and risk factors sections for any new or evolving operational or market risks.
3. Review any disclosed executive compensation details to understand management incentives.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-03-21: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the annual 10-K report for the fiscal year ended December 31, 2023, providing updated financial and operational data compared to previous filings.

Key Financial Figures

• $1.00 — nge on which registered Common stock, $1.00 par value per share FCCO The NASDAQ
• $17.36 — 6,574,711 based on the closing price of $17.36 on June 30, 2023, as reported on The NA
• $1.8 billion — December 31, 2023, we had approximately $1.8 billion in assets, $1.1 billion in loans, $1.5
• $1.1 billion — d approximately $1.8 billion in assets, $1.1 billion in loans, $1.5 billion in deposits, and
• $1.5 billion — llion in assets, $1.1 billion in loans, $1.5 billion in deposits, and $131.1 million in shar
• $131.1 million — in loans, $1.5 billion in deposits, and $131.1 million in shareholders' equity. We offer a w
• $64,898 — de median household income estimates of $64,898 and $72,877 for South Carolina and Geor
• $72,877 — usehold income estimates of $64,898 and $72,877 for South Carolina and Georgia, respect

Filing Documents

• e24098_fcco-10k.htm (10-K) — 3428KB
• e24098_ex10-23.htm (EX-10.23) — 140KB
• e24098_ex10-24.htm (EX-10.24) — 139KB
• e24098_ex10-25.htm (EX-10.25) — 69KB
• e24098_ex10-26.htm (EX-10.26) — 109KB
• e24098_ex10-27.htm (EX-10.27) — 41KB
• e24098_ex10-28.htm (EX-10.28) — 44KB
• e24098_ex21-1.htm (EX-21.1) — 1KB
• e24098_ex23-1.htm (EX-23.1) — 3KB
• e24098_ex31-1.htm (EX-31.1) — 10KB
• e24098_ex31-2.htm (EX-31.2) — 10KB
• e24098_ex32.htm (EX-32) — 4KB
• e24098_ex97.htm (EX-97.CLAWBACK) — 18KB
• e24098001.jpg (GRAPHIC) — 5KB
• 0001552781-24-000169.txt (&nbsp;) — 16534KB
• fcco-20231231.xsd (EX-101.SCH) — 86KB
• fcco-20231231_cal.xml (EX-101.CAL) — 130KB
• fcco-20231231_def.xml (EX-101.DEF) — 366KB
• fcco-20231231_lab.xml (EX-101.LAB) — 630KB
• fcco-20231231_pre.xml (EX-101.PRE) — 606KB
• e24098_fcco-10k_htm.xml (XML) — 3511KB

, Items 10-14 of this Form 10-K

Part III, Items 10-14 of this Form 10-K. TABLE OF CONTENTS Page No. PART I 7

Business

Item 1. Business 7

Risk Factors

Item 1A. Risk Factors 30

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 46

Cybersecurity

Item 1C. Cybersecurity 46

Properties

Item 2. Properties 47

Legal Proceedings

Item 3. Legal Proceedings 47

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 47 PART II 48

Market for Registrant's Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities 48

[Reserved]

Item 6. [Reserved] 49

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 49

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 80

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 80 Consolidated Balance Sheets 84 Consolidated Statements of Income 85 Consolidated Statements of Comprehensive Income (Loss) 86 Consolidated Statements of Changes in Shareholders' Equity 87 Consolidated Statements of Cash Flows 88

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 89

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 131

Controls and Procedures

Item 9A. Controls and Procedures 131

Other Information

Item 9B. Other Information 131

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 131 PART III 132

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 132

Executive Compensation

Item 11. Executive Compensation 132

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 132

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 132

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 132 PART IV 133

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 133

SIGNATURES

SIGNATURES 136 2 CAUTIONARY STATEMENT REGARDING

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report, including information included or incorporated by reference in this report, contains statements which constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may relate to, among other matters, the financial condition, results of operations, plans, objectives, future performance, and the business of our company. Forward-looking statements are based on many assumptions and estimates and are not guarantees of future performance. Our actual results may differ materially from those anticipated in any forward-looking statements, as they will depend on many factors about which we are unsure, including many factors which are beyond our control. The words "may," "approximately," "is likely," "would," "could," "should," "will," "expect," "anticipate," "predict," "project," "potential," "continue," "assume," "believe," "intend," "plan," "forecast," "goal," and "estimate," as well as similar expressions, are meant to identify such forward-looking statements. Potential risks and uncertainties that could cause our actual results to differ materially from those anticipated in our forward-looking statements include, without limitation, those described under the heading "Risk Factors" in this Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the U.S. Securities and Exchange Commission (the "SEC") and the following: credit losses as a result of, among other potential factors, declining real estate values, increasing interest rates, increasing unemployment, or changes in customer payment behavior or other factors; the amount of our loan portfolio collateralized by real estate and weaknesses in the real estate market; restrictions or conditions imposed by our regulators on our operations; the adequacy of the level of our allowance for credit losses and the amount of credit loss p

Business

Item 1. Business. General First Community Corporation, a bank holding company registered under the Bank Holding Company Act of 1956, was incorporated under the laws of South Carolina in November 1994 primarily to own and control all of the capital stock of First Community Bank, which commenced operations in August 1995. The Bank's primary federal regulator is the Federal Deposit Insurance Corporation (the "FDIC"). The Bank is also regulated and examined by the South Carolina Board of Financial Institutions (the "S.C. Board"). Unless otherwise mentioned or unless the context requires otherwise, references herein to "First Community," the "Company" "we," "us," "our" or similar references mean First Community Corporation and its consolidated subsidiaries. References to the "Bank" means First Community Bank. We engage in a commercial banking business from our main office in Lexington, South Carolina and our 22 full-service offices located in: the Midlands of South Carolina, which includes Lexington County (6 offices), Richland County (4 offices), Newberry County (2 offices) and Kershaw County (1 office); the Upstate of South Carolina, which includes Greenville County (2 offices), Anderson County (1 office) and Pickens County (1 office); the Piedmont Region of South Carolina, which includes York County, South Carolina (1 office) and the Central Savannah River Area, which includes Aiken County, South Carolina (1 office); and in Augusta, Georgia, which includes Richmond County (2 offices) and Columbia County (1 office). We intend to close one office in downtown Augusta, Georgia on June 27, 2024 and have provided the required notices to the FDIC and the S.C. Board. At December 31, 2023, we had approximately $1.8 billion in assets, $1.1 billion in loans, $1.5 billion in deposits, and $131.1 million in shareholders' equity. We offer a wide range of traditional banking products and services for professionals and small-to medium-sized businesses, including consumer