FCCO - First Community Corp: CRE-Heavy But The Exposure Is Very Manageable
2024-04-10 10:30:00 ET
Summary
- First Community Corporation reported a decrease in earnings due to increased provisions for soured loans, resulting in a 20% profit decrease.
- The bank sold securities at a loss to improve liquidity and increase the loan book, which will benefit the bank eventually.
- The bank's loan book is heavily focused on commercial real estate, but the quality of the loans appears to be good, with low levels of past due loans.
Introduction
First Community Corporation ( FCCO ) is the holding company that owns the First Community Bank, which is active in South Carolina. As of the end of last year, the bank had about $1.18B in assets and about 40% of the total number of assets and almost 75% of its loan book was invested in commercial real estate. That’s why I wanted to check up on the quality of the loan book to see if this local bank could be a useful addition to my portfolio....
First Community Corp: CRE-Heavy, But The Exposure Is Very Manageable