Stocks to Watch – First Community Corporation (Public, NASDAQ: FCCO)

First Community Corporation is the bank holding company for First Community Bank, N.A (the Bank). The Company is involved in a commercial banking business from its main office in Lexington, Forest Acres, Irmo, Cayce-West Columbia, Gilbert, Chapin, Northeast Columbia, Prosperity, Newberry and Camden.

The Company offers several banking products and services directed for the following clients:

• Professionals
• Small-to medium-sized businesses
• Consumer and commercial
• Mortgage, brokerage and investment
• Insurance services

The Bank also offers online banking to its customers. It is involved in a general commercial and retail banking business which include Internet banking, cash management services, safe deposit boxes, travelers checks, direct deposit of payroll and social security checks, and automatic drafts for various accounts. It provides non-deposit investment products and other investment brokerage services through a registered representative with an affiliation through LPL Financial.

Lending Activities

The Bank provides several commercial and personal loans. Commercial loans can either be secured and unsecured loans for working capital (including inventory and receivables), business expansion (including acquisition of real estate and improvements), and purchase of equipment and machinery.

Consumer loans on the other hand, include secured and unsecured loans for financing automobiles, home improvements, education and personal investments. The Company makes real estate construction and acquisition loans. It originates fixed and variable rate mortgage loans substantially all of which are closed in the name of a third party, which are sold into the secondary market.

Investment Activities

Its total securities amounted to an average of $194.4 million in 2010. On the same year, its investment securities portfolio amounted to $196.2 million. During 2010, total securities averaged $194.4.9 million. The Bank had mortgage-backed securities (MBSs), including collateralized mortgage obligations (CMOs) with a fair value of $121.3 million.

Sources of Funds

The primary source of fund is from deposit services, including checking accounts, negotiable order of withdrawal (NOW) accounts, savings accounts and other time deposits of various types, ranging from daily money market accounts to longer-term certificates of deposit. It also has borrowed funds consist of securities sold under agreements to repurchase, Federal Home Loan Bank advances and long-term debt. As a member of the Federal Home Loan Bank of Atlanta, the Bank has access to advances from the FHLB Atlanta for various terms and amounts.

First Community Corporation (Public, NASDAQ: FCCO) 52 week:  4.69 – 8.50 Mkt cap: 23.62M   Shares: 3.30M