On The Move
First Community Corporation Announces Successful Closing of Common Stock Offering
Jul 30, 2012
LEXINGTON, SC - July 30, 2012 - First Community Corporation (Nasdaq: FCCO), the holding company for First Community Bank, N.A., announced the close of its previously announced public common stock offering on July 27, 2012.
In connection with the closing, the underwriter for the offering exercised, in full, its over-allotment option to purchase an additional 244,565 shares of the Company's common stock. With this exercise, the offering resulted in the issuance of a total of 1,875,000 shares of common stock at $8.00 per share, resulting in gross proceeds of $15 million, as compared to its original target of $12.5 million. The net proceeds of the offering were approximately $13.8 million after deducting underwriting discounts and commissions and estimated offering expenses. Strong investor interest led Raymond James & Associates, Inc, the sole underwriter of the offering, to fully exercise their over-allotment option.
The Company noted that the blend of institutional and retail investors speaks to the broad reception for the offering, which was three times oversubscribed. In addition, the Company was able to price the offering at-the-market as compared to a discount which is typically seen in this type of offering. Immediate market reaction after the pricing of the offering has been strong. The Company believes that this transaction represents the only successfully executed publicly underwritten common stock offering in more than five years for a bank in the Carolinas with $1 billion or less in total assets.
Mike Crapps, President and CEO of First Community commented on the offering by saying, "The proceeds of this offering position our Company well for future opportunities, including the potential repurchase of the TARP-CPP preferred shares and the warrants issued to the U.S. Treasury. Additionally, it positions the Company well to take advantage of certain growth opportunities in the marketplace." Crapps continued, "We believe the response to this offering affirms the confidence of investors in the strength of our business plan and the success of our business model. "
First Community Corporation stock trades on the NASDAQ Capital Market under the symbol "FCCO" and is the holding company for First Community Bank, N.A., a local community bank based in the midlands of South Carolina. First Community Bank, N.A. operates eleven banking offices located in Lexington, Richland, Newberry and Kershaw counties in addition to First Community Financial Consultants, a financial planning/investment advisory division and Palmetto South Mortgage, a separate mortgage division.