First Community Corp 10-Q for FY2024 Q3

First Community Corp (FCCO)

10-Q 2024-11-12 For: 2024-09-30

Added on April 07, 2026

About this 10-Q

First Community Corp filed this 10-Q on November 12, 2024, covering the quarter ended September 30, 2024 (FY2024 Q3).

Headline figures

Quarter ended September 30, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $228K; down 5.0% from $240K a year earlier
Net income: $3.86M; up 119.9% from net income of $1.76M a year earlier
Diluted EPS: $0.50; up 117.4% from $0.23 a year earlier

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☒	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended September 30, 2024

☐	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ____ to ____

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.)

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

Large accelerated filer ☐		Accelerated filer ☐
Non-accelerated Filer ☒		Smaller reporting company ☒
		Emerging growth company ☐

PART I – FINANCIAL INFORMATION		1
Item 1.	Financial Statements	1
	Consolidated Balance Sheets	1
	Consolidated Statements of Income	2
	Consolidated Statements of Comprehensive Income	4
	Consolidated Statements of Changes in Shareholders’ Equity	5
	Consolidated Statements of Cash Flows	8
	Notes to Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	60
Item 4.	Controls and Procedures	60

PART II – OTHER INFORMATION		61
Item 1.	Legal Proceedings	61
Item 1A.	Risk Factors	61
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	61
Item 3.	Defaults Upon Senior Securities	61
Item 4.	Mine Safety Disclosures	61
Item 5.	Other Information	61
Item 6.	Exhibits	62

SIGNATURES		63

	September 30,
(Dollars in thousands, except par values)	2024			December 31,
	(Unaudited)			2023
ASSETS
Cash and due from banks	$	27,144		$	27,908
Interest-bearing bank balances		144,354			66,787
Investment securities available-for-sale		269,553			282,226
Investment securities held-to-maturity, fair value of $204,621 and $205,518 at September 30, 2024 and December 31, 2023, respectively, net of allowance for credit losses — investments		212,219			217,170
Other investments, at cost		5,054			6,800
Loans held-for-sale		3,935			4,433
Loans held-for-investment		1,196,659			1,134,019
Less, allowance for credit losses – loans		12,933			12,267
Net loans held-for-investment		1,183,726			1,121,752
Property and equipment – net		30,099			30,589
Lease right-of-use asset		2,546			3,248
Bank owned life insurance		30,769			30,174
Other real estate owned		544			622
Intangible assets		486			604
Goodwill		14,637			14,637
Other assets		18,482			20,738
Total assets	$	1,943,548		$	1,827,688
LIABILITIES
Deposits:
Non-interest bearing	$	441,386		$	432,333
Interest bearing		1,202,678			1,078,668
Total deposits		1,644,064			1,511,001
Securities sold under agreements to repurchase		66,933			62,863
Federal funds purchased		3,656			—
Federal Home Loan Bank advances		50,000			90,000
Junior subordinated debt		14,964			14,964
Lease liability		2,711			3,426
Other liabilities		17,908			14,375
Total liabilities		1,800,236			1,696,629
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 7,640,648 at September 30, 2024 and 7,606,172 at December 31, 2023		7,641			7,606
Nonvested restricted stock and stock units		2,397			2,181
Additional paid in capital		93,750			93,167
Retained earnings		62,747			56,296
Accumulated other comprehensive loss		(23,223	)		(28,191	)
Total shareholders’ equity		143,312			131,059
Total liabilities and shareholders’ equity	$	1,943,548		$	1,827,688


(Dollars in thousands, except per share amounts)	Three Months ended September 30,
	2024			2023
Interest and dividend income:
Loans, including fees	$	17,279		$	13,804
Investment securities – taxable		3,975			4,229
Investment securities – non taxable		355			366
Other short term investments and CDs		1,552			335
Total interest income		23,161			18,734
Interest expense:
Deposits		8,287			4,777
Securities sold under agreement to repurchase		506			446
Other borrowed money		956			1,408
Total interest expense		9,749			6,631
Net interest income		13,412			12,103
(Release of) provision for credit losses		(16	)		474
Net interest income after (release of) provision for credit losses		13,428			11,629
Non-interest income:
Deposit service charges		228			240
Mortgage banking income		575			511
Investment advisory fees and non-deposit commissions		1,595			1,187
Loss on sale of securities		—			(1,249	)
Gain on sale of other assets		5			46
Other		1,167			1,129
Total non-interest income		3,570			1,864
Non-interest expense:
Salaries and employee benefits		7,422			6,613
Occupancy		793			776
Equipment		391			416
Marketing and public relations		477			609
FDIC insurance assessments		290			211
Other real estate expense, net		11			21
Amortization of intangibles		40			39
Other		2,567			2,588
Total non-interest expense		11,991			11,273
Net income before tax		5,007			2,220
Income tax expense		1,146			464
Net income	$	3,861		$	1,756

Basic earnings per common share	$	0.51		$	0.23
Diluted earnings per common share	$	0.50		$	0.23


(Dollars in thousands, except per share amounts)	Nine Months ended September 30,
	2024		2023
Interest and dividend income:
Loans, including fees	$	49,230	$	37,277
Investment securities – taxable		12,279		12,513
Investment securities - non taxable		1,070		1,109
Other short term investments and CD’s		3,769		1,222
Total interest income		66,348		52,121
Interest expense:
Deposits		23,210		10,162
Securities sold under agreement to repurchase		1,611		1,165
Other borrowed money		3,344		4,197
Total interest expense		28,165		15,524
Net interest income		38,183		36,597
Provision for credit losses		567		730
Net interest income after provision for credit losses		37,616		35,867
Non-interest income:
Deposit service charges		722		692
Mortgage banking income		1,659		1,040
Investment advisory fees and non-deposit commissions		4,461		3,335
Loss on sale of securities		—		(1,249	)
Gain on sale of other assets		5		151
Other		3,549		3,521
Total non-interest income		10,396		7,490
Non-interest expense:
Salaries and employee benefits		21,826		19,452
Occupancy		2,321		2,419
Equipment		1,038		1,129
Marketing and public relations		1,301		1,325
FDIC insurance assessments		870		614
Other real estate expense (income)		113		(142	)
Amortization of intangibles		118		118
Other		8,052		7,549
Total non-interest expense		35,639		32,464
Net income before tax		12,373		10,893
Income tax expense		2,650		2,347
Net income	$	9,723	$	8,546

Basic earnings per common share	$	1.28	$	1.13
Diluted earnings per common share	$	1.26	$	1.12


	Three months ended September 30,
(Dollars in thousands)	2024		2023
Net income	$	3,861	$	1,756
Other comprehensive income (loss):
Unrealized gain (loss) during the period on available-for-sale securities, net of tax expense of $991 and tax benefit of $768, respectively		3,723		(2,891	)
Reclassification adjustment for loss included in net income, net of tax benefit of $0 and $262, 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 $90 and $89, respectively.		342		335
Other comprehensive income (loss)		4,065		(1,569	)
Comprehensive income	$	7,926	$	187

																Accumulated
	Common						Additional			Nonvested						Other
(Dollars in thousands)	Shares			Common			Paid-in			Restricted			Retained			Comprehensive
	Issued			Stock			Capital			Stock			Earnings			Loss			Total
Balance, December 31, 2023		7,606		$	7,606		$	93,167		$	2,181		$	56,296		$	(28,191	)	$	131,059
Net income		—			—			—			—			9,723			—			9,723
Other comprehensive income net of tax expense of $1,320		—			—			—			—			—			4,968			4,968
Issuance of common stock-share based compensation		9			9			160			(273	)		—			—			(104	)
Issuance of restricted stock		14			14			232			(246	)		—			—			—
Grant restricted stock units		—			—			—			129			—			—			129
Amortization of compensation on restricted stock		—			—			—			606			—			—			606
Shares forfeited		(6	)		(6	)		(103	)		—			—			—			(109	)
Dividends: Common ($0.43 per share)		—			—			—			—			(3,272	)		—			(3,272	)
Dividend reinvestment plan		18			18			294			—			—			—			312
Balance, September 30, 2024		7,641		$	7,641		$	93,750		$	2,397		$	62,747		$	(23,223	)	$	143,312

Balance, December 31, 2022		7,578		$	7,578		$	92,683		$	1,461		$	49,025		$	(32,386	)	$	118,361
Net income		—			—			—			—			8,546			—			8,546
Adoption of new accounting standard-CECL net of tax of $90		—			—			—			—			(337	)		—			(337	)
Other comprehensive loss net of tax benefit of $178		—			—			—			—			—			(671	)		(671	)
Issuance of common stock-share based compensation		2			2			39			(69	)		—			—			(28	)
Issuance of restricted stock		8			8			146			(154	)		—			—			—
Grant restricted stock units		—			—			—			143			—			—			143
Amortization of compensation on restricted stock		—			—			—			548			—			—			548
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


	Nine months ended September 30,
(Dollars in thousands)	2024			2023
Cash flows from operating activities:
Net income	$	9,723		$	8,546
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		1,285			1,317
Net premium amortization on investment securities available-for-sale		(2,439	)		(1,754	)
Net premium amortization on investment securities held-to-maturity		(469	)		(422	)
Provision for credit losses		567			730
Writedowns of other real estate owned		78			—
Origination of loans held-for-sale		(55,334	)		(36,003	)
Sale of loans held-for-sale		57,476			32,273
Gain on sale of loans held-for-sale		(1,644	)		—
Gain on sale of other real estate owned		(5	)		(151	)
Amortization of intangibles		118			118
Accretion on acquired loans		—			(61	)
Loss on sale of securities		—			1,249
(Gain) loss on fair value of equity securities		(20	)		2
Increase in other assets		2,333			(3,942	)
Increase in other liabilities		3,012			1,815
Net cash provided by operating activities		14,681			3,717
Cash flows from investing activities:
Purchase of investment securities available-for-sale		—			(6,025	)
Purchase of other investment securities		—			(2,114	)
Maturity/call of investment securities available-for-sale		20,109			17,089
Maturity/call of investment securities held-to-maturity		5,426			9,219
Proceeds from sale of other investment securities		1,766			—
Proceeds from sale of securities available-for-sale		—			38,662
Increase in loans		(62,735	)		(110,722	)
Proceeds from sale of other real estate owned		—			419
Purchase of property and equipment		(800	)		(966	)
Net disposals of property and equipment		5			—
Net cash used in investing activities		(36,229	)		(54,438	)
Cash flows from financing activities:
Increase in deposit accounts		133,063			106,644
(Increase) decrease in securities sold under agreements to repurchase		(4,070	)		(1,570	)
Increase (decrease) in Fed Funds Borrowed		3,656			(22,000	)
Advances from the Federal Home Loan Bank		—			269,000
Repayment of advances from the Federal Home Loan Bank		(40,000	)		(239,000	)
Shares retired / forfeited		(109	)		(111	)
Dividends paid: Common Stock		(3,272	)		(3,175	)
Restricted Stock Units Granted		129			143
Cost of issuance of common stock-deferred compensation		(104	)		(28	)
Change in non-vested restricted stock		606			548
Dividend reinvestment plan		312			325
Net cash provided by financing activities		98,351			110,776
Net increase in cash and cash equivalents		76,803			60,055
Cash and cash equivalents at beginning of period		94,695			37,401
Cash and cash equivalents at end of period	$	171,498		$	97,456
Supplemental disclosure:
Cash paid during the period for:
Interest	$	23,050		$	13,469
Income taxes	$	2,786		$	3,459
Non-cash investing and financing activities:
Unrealized gain (loss) on available-for-sale securities, net of tax	$	3,947		$	(2,639	)
Amortization of unrealized losses on securities from transfer of available-for-sale securities to held-to-maturity, net of tax		1,021			981
Recognition of operating lease liability		—			825


	Nine months				Three months
	Ended September 30,				Ended September 30,
(In thousands except average market price and per share data)	2024		2023		2024		2023
Numerator (Net income available to common shareholders)	$	9,723	$	8,546	$	3,861	$	1,756
Denominator
Weighted average common shares outstanding for:
Basic shares		7,613		7,564		7,623		7,573
Dilutive securities:
Deferred compensation		82		85		99		82
Diluted common shares outstanding		7,695		7,649		7,722		7,655
Earnings per common share:
Basic	$	1.28	$	1.13	$	0.51	$	0.23
Diluted		1.26		1.12		0.50		0.23
The average market price used in calculating assumed number of shares	$	18.40	$	18.83	$	20.69	$	17.80

			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses			Fair Value
September 30, 2024
US Treasury securities	$	15,815	$	—	$	(2,061	)	$	13,754
Government Sponsored Enterprises		2,500		—		(289	)		2,211
Mortgage-backed securities		245,975		70		(13,264	)		232,781
Small Business Administration pools		13,199		27		(296	)		12,930
Corporate and other securities		8,757		—		(880	)		7,877
Total	$	286,246	$	97	$	(16,790	)	$	269,553

			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses			Fair Value
December 31, 2023
US Treasury securities	$	20,791	$	—	$	(2,445	)	$	18,346
Government Sponsored Enterprises		2,500		—		(371	)		2,129
Mortgage-backed securities		255,757		15		(17,613	)		238,159
Small Business Administration pools		16,108		24		(411	)		15,721
Corporate and other securities		8,759		—		(888	)		7,871
Total	$	303,915	$	39	$	(21,728	)	$	282,226


September 30, 2024	Less than 12 months				12 months or more				Total
Available-for-sale securities:	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
US Treasury Securities	$	—	$	—	$	13,754	$	2,061	$	13,754	$	2,061
Government Sponsored Enterprise		—		—		2,211		289		2,211		289
Mortgage-backed securities		318		—		222,197		13,264		222,515		13,264
Small Business Administration pools		700		—		9,104		296		9,804		296
Corporate and other securities		1,495		263		6,377		617		7,872		880
Total	$	2,513	$	263	$	253,643	$	16,527	$	256,156	$	16,790

	Three Months
	Ended
(Dollars in thousands)	September 30, 2024
Allowance for Credit Losses on Held-to-Maturity Securities:
State and local government
Beginning balance, June 30, 2024	$	27
Provision for credit losses		(3	)
Ending balance, September 30, 2024	$	24

	Three Months
	Ended
(Dollars in thousands)	September 30, 2023
Allowance for Credit Losses on Held-to-Maturity Securities:
State and local government
Beginning balance, June 30, 2023	$	37
Provision for credit losses		(5	)
Ending balance, September 30, 2023	$	32

	Nine Months
	Ended
(Dollars in thousands)	September 30, 2024
Allowance for Credit Losses on Held-to-Maturity Securities:
State and local government
Beginning balance, December 31, 2023	$	30
Provision for credit losses		(6	)
Ending balance, September 30, 2024	$	24

	Nine Months
	Ended
(Dollars in thousands)	September 30, 2023
Allowance for Credit Losses on Held-to-Maturity Securities:
State and local government
Beginning balance, December 31, 2022	$	—
Adjustment for adoption of ASC 326		43
Provision for credit losses		(11	)
Ending balance, September 30, 2023	$	32

	Available-for-sale
September 30, 2024	Amortized			Fair
(Dollars in thousands)	Cost			Value
Due in one year or less	$	244		$	240
Due after one year through five years		12,505			12,315
Due after five years through ten years		33,492			30,028
Due after ten years		240,005			226,970
Total	$	286,246		$	269,553

	Held-To-Maturity
September 30, 2024	Amortized			Fair
(Dollars in thousands)	Cost			Value
Due in one year or less	$	4,665		$	4,631
Due after one year through five years		56,606			55,635
Due after five years through ten years		60,346			59,285
Due after ten years		90,626			85,094
Allowance for Credit Losses on Held-to-Maturity Securities		(24	)		(24	)
Total	$	212,219		$	204,621

	September 30,		December 31,
(Dollars in thousands)	2024		2023
Commercial	$	84,445	$	78,134
Real estate:
Construction		149,395		118,225
Mortgage-residential		121,021		94,796
Mortgage-commercial		786,029		791,947
Consumer:
Home equity		38,697		34,752
Other		17,072		16,165
Total loans, net of deferred loan fees and costs	$	1,196,659	$	1,134,019

	As of			As of
(Dollars in thousands)	September 30, 2024			December 31, 2023
Rating:
Aaa	$	153,394		$	156,749
Aa1/Aa2/Aa3		53,792			55,388
A1/A2		5,057			5,063
Allowance for Credit Losses on Held-to-Maturity Securities		(24	)		(30	)
Total	$	212,219		$	217,170


	Term Loans by year of Origination
($ in thousands)	2020		2021		2022		2023		2024		Prior		Revolving		Revolving Converted to Term		Total
Commercial
Pass	$	679	$	20,609	$	7,649	$	8,928	$	15,591	$	8,355	$	22,586	$	38	$	84,435
Special mention		—		—		—		—		—		—		10		—		10
Total commercial		679		20,609		7,649		8,928		15,591		8,355		22,596		38		84,445

Current period gross write-offs		—		77		—		—		—		5		—		—		83
Real estate construction
Pass		—		4,415		41,830		54,141		15,879		6,249		26,881		—		149,395
Total real estate construction		—		4,415		41,830		54,141		15,879		6,249		26,881		—		149,395

Current period gross write-offs		—		—		—		—		—		—		—		—		—

Real estate mortgage-residential
Pass		9,129		5,566		32,835		29,775		12,569		8,466		880		21,201		120,421
Special mention		219		—		—		—		—		170		—		—		389
Substandard		—		—		—		—		—		211		—		—		211
Total real estate mortgage-residential		9,348		5,566		32,835		29,775		12,569		8,466		880		21,201		121,021

Current period gross write-offs		—		—		—		—		—		—		—		—		—

Real estate mortgage-commercial
Pass		82,379		123,895		192,465		110,281		58,864		205,140		12,084		581		785,689
Special mention		—		—		—		—		—		151		—		—		151
Substandard		—		117		—		—		—		72		—		—		189
Total real estate mortgage-commercial		82,379		124,012		192,465		110,281		58,864		205,363		12,084		581		786,029

Current period gross write-offs		—		2		—		—		—		—		—		—		2

Consumer - home equity
Pass		—		—		—		—		—		—		37,532		—		37,532
Special mention		—		—		—		—		—		—		105		—		105
Substandard		—		—		—		—		—		—		1,060		—		1,060
Total consumer - home equity		—		—		—		—		—		—		38,697		—		38,697

Current period gross write-offs		—		—		—		—		—		—		—		—		—

Consumer - other
Pass		120		283		752		1,279		2,438		1,236		10,946		—		17,054
Special mention		—		—		—		15		3		—		—		—		18
Total consumer - other		120		283		752		1,294		2,441		1,236		10,946		—		17,072

Current period gross write-offs		—		—		—		—		—		—		64		—		64


	Term Loans by year of Origination
($ in thousands)	2019		2020		2021		2022		2023		Prior		Revolving		Revolving Converted to Term		Total
Commercial
Pass	$	1,149	$	1,375	$	23,226	$	9,018	$	12,950	$	9,230	$	21,033	$	49	$	78,030
Special mention		—		—		—		—		—		26		—		—		26
Substandard		—		—		78		—		—		—		—		—		78
Total commercial		1,149		1,375		23,304		9,018		12,950		9,256		21,033		49		78,134

Current period gross write-offs		—		20		—		—		—		—		—		—		20
Real estate construction
Pass		6,864		—		5,074		39,514		47,992		—		18,781		—		118,225
Total real estate construction		6,864		—		5,074		39,514		47,992		—		18,781		—		118,225

Current period gross write-offs		—		—		—		—		—		—		—		—		—

Real estate mortgage-residential
Pass		1,894		10,548		6,219		28,843		28,517		8,420		977		8,962		94,380
Special mention		—		25		—		—		—		177		—		—		202
Substandard		—		—		—		—		—		214		—		—		214
Total real estate mortgage-residential		1,894		10,573		6,219		28,843		28,517		8,811		977		8,962		94,796

Current period gross write-offs		—		—		—		—		—		—		—		—		—

Real estate mortgage-commercial
Pass		47,962		95,120		136,892		201,380		106,125		189,983		14,038		329		791,829
Special mention		—		—		—		—		—		21		—		—		21
Substandard		—		—		—		—		—		97		—		—		97
Total real estate mortgage-commercial		47,962		95,120		136,892		201,380		106,125		190,101		14,038		329		791,947

Current period gross write-offs		—		—		—		—		—		—		—		—		—

Consumer - home equity
Pass		—		—		—		—		—		—		33,621		—		33,621
Special mention		—		—		—		—		—		—		67		—		67
Substandard		—		—		—		—		—		—		1,064		—		1,064
Total consumer - home equity		—		—		—		—		—		—		34,752		—		34,752

Current period gross write-offs		—		—		—		—		—		—		—		—		—

Consumer - other
Pass		420		203		435		1,164		2,043		902		10,982		—		16,149
Special mention		—		—		—		—		16		—		—		—		16
Substandard		—		—		—		—		—		—		—		—		—
Total consumer - other		420		203		435		1,164		2,059		902		10,982		—		16,165

Current period gross write-offs		—		—		—		—		—		—		67		—		67

($ in thousands)	Commercial			Real Estate Construction		Real Estate Mortgage Residential		Real Estate Mortgage Commercial			Consumer Home Equity		Consumer Other			Total Loans
Balance at June 30, 2024	$	1,026		$	1,619	$	1,378	$	8,146		$	504	$	259		$	12,932
Charge-offs		(53	)		—		—		—			—		(29	)		(82	)
Recoveries		3			1		—		2			2		6			14
Provision for credit losses		35			63		148		(274	)		50		(47	)		69
Balance at September 30, 2024	$	1,011		$	1,683	$	1,526	$	7,874		$	556	$	283		$	12,933

	September 30, 2024
(Dollars in thousands)	Amortized cost basis		% of Total Loan Type			Financial effect
Real Estate Mortgage Residential		197		0.16	%	Deferred two monthly payments that are added to the end of the original loan term.
Total Loans	$	197	$	0.16	%

					Greater than
(Dollars in thousands)	30-59 Days		60-89 Days		90 Days and				Total
September 30, 2024	Past Due		Past Due		Accruing		Non-accrual		Past Due		Current		Total Loans
Commercial	$	55	$	6	$	—	$	—	$	61	$	84,384	$	84,445
Real estate:
Construction		—		—		—		—		—		149,395		149,395
Mortgage-residential		129		422		211		—		762		120,259		121,021
Mortgage-commercial		148		74		—		117		339		785,690		786,029
Consumer:
Home equity		229		—		—		2		231		38,466		38,697
Other		10		7		—		—		17		17,055		17,072
Total	$	571	$	509	$	211	$	119	$	1,410	$	1,195,249	$	1,196,659

					Greater than
(Dollars in thousands)	30-59 Days		60-89 Days		90 Days and				Total
December 31, 2023	Past Due		Past Due		Accruing		Non-accrual		Past Due		Current		Total Loans
Commercial	$	19	$	7	$	—	$	24	$	50	$	78,084	$	78,134
Real estate:
Construction		—		—		—		—		—		118,225		118,225
Mortgage-residential		244		15		214		—		473		94,323		94,796
Mortgage-commercial		67		124		—		—		191		791,756		791,947
Consumer:
Home equity		—		—		—		3		3		34,749		34,752
Other		22		—		1		—		23		16,142		16,165
Total	$	352	$	146	$	215	$	27	$	740	$	1,133,279	$	1,134,019


	CECL
	September 30, 2024
(Dollars in thousands)	Non-accrual Loans with No Allowance		Non-accrual Loans with an Allowance		Total Non-accrual Loans
Commercial	$	—	$	—	$	—
Real estate:
Construction		—		—		—
Mortgage-residential		—		—		—
Mortgage-commercial		—		117		117
Consumer:
Home equity		—		2		2
Other		—		—		—
Total	$	—	$	119	$	119

(Dollars in thousands)	Total Allowance for Credit Losses - Unfunded Commitments
Balance, June 30, 2024	$	490
Provision for unfunded commitments		(81	)
Balance, September 30, 2024	$	409

(Dollars in thousands)	Total Allowance for Credit Losses - Unfunded Commitments
Balance, June 30, 2023	$	429
Provision for unfunded commitments		214
Balance, September 30, 2023	$	643

Level l	Quoted prices in active markets for identical assets or liabilities.
Level 2	Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.


	September 30, 2024
	Carrying		Fair Value
(Dollars in thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and short term investments	$	171,499	$	171,499	$	171,499	$	—	$	—
Available-for-sale securities		269,553		269,553		—		269,553		—
Held-to-maturity securities		212,219		204,622		—		204,622		—
Other investments, at cost		5,054		5,054		—		—		5,054
Loans held for sale		3,935		3,935		—		3,935		—
Net loans receivable		1,183,257		1,133,928		—		—		1,133,928
Accrued interest receivable		5,994		5,994		5,994		—		—
Financial liabilities:
Non-interest bearing demand	$	441,386	$	441,386	$	—	$	441,386	$	—
Interest bearing demand deposits and money market accounts		771,319		771,319		—		771,319		—
Savings		108,640		108,640		—		108,640		—
Time deposits		313,706		317,725		—		317,725		—
Total deposits		1,635,051		1,639,070		—		1,639,070		—
Federal Home Loan Bank Advances		50,000		50,000		—		50,000		—
Short term borrowings		70,589		70,589		—		70,589		—
Derivative financial instruments		82		82		—		82		—
Junior subordinated debentures		14,964		12,906		—		12,906		—
Accrued interest payable		5,635		5,635		5,635		—		—


(Dollars in thousands)	September 30, 2024
Description	Total		Level 1		Level 2		Level 3
Available- for-sale securities
US Treasury Securities	$	13,754	$	—	$	13,754	$	—
Government Sponsored Enterprises		2,211		—		2,211		—
Mortgage-backed securities		232,781		—		232,781		—
Small Business Administration pools		12,930		—		12,930		—
Corporate and other securities		7,877		—		7,877		—
Total Available-for-sale securities		269,553		—		269,553		—
Loans held for sale		4,433		—		4,433		—
Total	$	273,986	$	—	$	273,986	$	—

(Dollars in thousands)	Fair Value as of September 30, 2024		Valuation Technique	Significant Observable Inputs	Significant Unobservable Inputs
OREO	$	544	Appraisal Value/Comparison Sales/Other estimates	Appraisals and or sales of comparable properties	Appraisals discounted 6% to 16% for sales commissions and other holding cost

(Dollars in thousands)	Fair Value as of December 31, 2023		Valuation Technique	Significant Observable Inputs	Significant Unobservable Inputs
OREO	$	622	Appraisal Value/Comparison Sales/Other estimates	Appraisals and or sales of comparable properties	Appraisals discounted 6% to 16% for sales commissions and other holding cost

	·	Commercial and Retail Banking: The Company’s primary business is to provide deposit and lending products and services to its commercial and retail customers.
	·	Mortgage Banking: This segment provides mortgage origination services for loans that will be sold to investors in the secondary market, consumer mortgage loans that will be held-for-investment, and consumer residential construction loans. The Company allocates a provision for credit loss, cost of funds, and other operating costs to this segment.
	·	Investment advisory and non-deposit: This segment provides investment advisory services and non-deposit products.
	·	Corporate: This segment includes the parent company financial information, including interest on parent company debt and dividend income received from the Bank.

(Dollars in thousands)	Commercial					Investment
Three months ended September 30, 2024	and Retail			Mortgage		Advisory and
	Banking			Banking		Non-Deposit		Corporate			Eliminations			Consolidated
Dividend and Interest Income	$	21,211		$	1,940	$	—	$	1,454		$	(1,444	)	$	23,161
Interest expense		8,714			724		—		311			—			9,749
Net interest income	$	12,497		$	1,216	$	—	$	1,143		$	(1,444	)	$	13,412
Provision for credit losses		(135	)		119		—		—			—			(16	)
Noninterest income		1,400			575		1,595		—			—			3,570
Noninterest expense		9,606			964		1,060		361			—			11,991
Net income before taxes	$	4,426		$	708	$	535	$	782		$	(1,444	)	$	5,007
Income tax provision (benefit)		1,285			—		—		(139	)		—			1,146
Net income	$	3,141		$	708	$	535	$	921		$	(1,444	)	$	3,861

(Dollars in thousands)	September 30, 2024			December 31, 2023
Right-of-use assets	$	2,546		$	3,248
Lease liabilities	$	2,711		$	3,426
Weighted average remaining lease term		11.34 years			11.70 years
Weighted average discount rate		4.21	%		4.29	%

(Dollars in thousands)
Year	Operating Leases
2024	$	93
2025		377
2026		386
2027		363
2028		303
Thereafter		1,945
Total undiscounted lease payments	$	3,467
Less effect of discounting		(756	)
Present value of estimated lease payments (lease liability)	$	2,711

(Dollars in thousands)	Securities Available for Sale			Securities Held to Maturity			Accumulated Other Comprehensive Loss
Balance at December 31, 2023		(17,135	)		(11,056	)		(28,191	)
Other comprehensive loss		3,947			—			3,947
Amortization of unrealized loss on securities transferred to held-to-maturity		—			1,021			1,021
Net other comprehensive income during period		3,947			1,021			4,968
Balance at September 30, 2024		(13,188	)		(10,035	)		(23,223	)

	·	changes in monetary and tax policies, including potential changes in tax laws and regulations;
	·	changes in accounting standards, policies, estimates and practices as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the SEC and the Public Company Accounting Oversight Board;

	·	our assumptions and estimates used in applying critical accounting policies, which may prove unreliable, inaccurate or not predictive of actual results;
	·	the rate of delinquencies and amounts of loans charged-off;
	·	the rate of loan growth in recent years and the lack of seasoning of a portion of our loan portfolio;