U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-QSB

(Mark One)
x	Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2003
o	Transition report under Section 13 or 15(d) of the Exchange Act for the transition period from                   to

Commission File No. 33-86258

FIRST COMMUNITY CORPORATION

(Exact Name of Small Business Issuer as Specified in its Charter)

South Carolina	57-1010751
(State of Incorporation)	(I.R.S. Employer Identification)

5455 Sunset Boulevard, Lexington, South Carolina 29072

(Address of Principal Executive Offices)

(803) 951-2265

(Issuer“s Telephone Number, Including Area Code)

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

     Check whether the issuer: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x      No o

     State the number of shares outstanding of each of the issuer“s classes of common equity, as of the latest practicable date:

     1,589,706 shares of common stock, par value $1.00 per share, were issued and outstanding as of July 31, 2003.

     Transitional Small Business Disclosure Format (check one): Yes o      No x

FIRST COMMUNITY CORPORATION
CONSOLIDATED BALANCE SHEETS

					June 30,
					2003		December 31,
					(Unaudited)		2002
				ASSETS
Cash and due from banks					$	9,817,618	$	7,698,671
Interest-bearing bank balances						859,099		935,536
Federal funds sold and securities purchased under agreements to resell						20,653,490		9,209,069
Investment securities — available for sale						52,783,487		64,767,700
Investment securities — held to maturity (market value of $5,031,838 and $5,160,699 at June 30, 2003 and December 31, 2002, respectively)						4,740,196		5,016,990
Loans						111,881,355		99,991,248
Less, allowance for loan losses						1,850,943		1,525,308
		Net loans				110,030,412		98,465,940
Property, furniture and equipment — net						7,326,116		6,811,540
Intangible assets						852,642		942,295
Other assets						1,340,851		1,352,974
			Total assets		$	208,403,911	$	195,200,715
				LIABILITIES
Deposits:
	Non-interest bearing demand				$	35,551,885	$	27,124,475
	NOW and money market accounts					60,119,694		58,127,157
	Savings					12,792,706		9,818,007
	Time deposits less than $100,000					45,550,377		46,646,739
	Time deposits $100,000 and over					27,860,368		26,346,095
				Total deposits		181,875,030		168,062,473
Securities sold under agreements to repurchase						5,809,200		7,306,064
Other borrowed money						174,389		164,287
Other liabilities						1,468,995		1,229,168
			Total liabilities			189,327,614		176,761,992
				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; 10,000,000 shares authorized; issued and outstanding 1,589,444 and 1,587,970 at June 30, 2003 and December 31, 2002, respectively						1,589,444		1,587,970
Additional paid in capital						12,772,445		12,771,383
Retained earnings						4,180,637		3,414,234
Accumulated other comprehensive income						533,771		665,136
			Total shareholders’ equity			19,076,297		18,438,723
			Total liabilities and shareholders’ equity		$	208,403,911	$	195,200,715

FIRST COMMUNITY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME

				Six		Six
				Months Ended		Months Ended
				June 30,		June 30,
				2003		2002
				(Unaudited)		(Unaudited)
Interest income:
	Loans, including fees			$	3,703,170	$	3,446,608
	Investment securities				1,226,715		1,239,981
	Federal funds sold and securities purchased under resale agreements				94,446		80,825
	Other				4,739		8,415
			Total interest income		5,029,070		4,775,829
Interest expense:
	Deposits				1,254,826		1,390,370
	Federal funds sold and securities sold under agreement to repurchase				16,308		20,675
	Other borrowed money				415		692
		Total interest expense			1,271,549		1,411,737
Net interest income					3,757,521		3,364,092
Provision for loan losses					97,000		437,000
Net interest income after provision for loan losses					3,660,521		2,927,092
Non-interest income:
	Deposit service charges				327,616		273,992
	Mortgage origination fees				193,328		104,201
	Securities gains				—		60,616
	Other				186,613		173,074
		Total non-interest income			707,557		611,883
Non-interest expense:
	Salaries and employee benefits				1,610,326		1,291,092
	Occupancy				184,468		150,390
	Equipment				353,138		298,901
	Marketing and public relations				155,064		113,497
	Amortization of intangibles				89,654		92,640
	Other				578,781		584,857
		Total non-interest expense			2,971,431		2,531,377
Net income before tax					1,396,647		1,007,598
Income taxes					487,250		349,850
Net income				$	909,397	$	657,748
Basic earnings per common share				$	0.57	$	0.41
Diluted earnings per common share				$	0.55	$	0.40

FIRST COMMUNITY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME

				Three		Three
				Months Ended		Months Ended
				June 30,		June 30,
				2003		2002
				(Unaudited)		(Unaudited)
Interest income:
	Loans, including fees			$	1,882,690	$	1,753,424
	Investment securities				583,849		635,070
	Federal funds sold and securities purchased under resale agreements				50,589		45,464
	Other				2,091		4,359
			Total interest income		2,519,219		2,438,317
Interest expense:
	Deposits				608,131		668,008
	Federal funds sold and securities sold under agreement to repurchase				7,581		10,769
	Other borrowed money				214		324
		Total interest expense			615,926		679,101
Net interest income					1,903,293		1,759,216
Provision for loan losses					45,000		260,000
Net interest income after provision for loan losses					1,858,293		1,499,216
Non-interest income:
	Deposit service charges				173,025		141,843
	Mortgage origination fees				99,994		51,026
	Securities gains				—		60,616
	Other				125,319		109,429
		Total non-interest income			398,338		362,914
Non-interest expense:
	Salaries and employee benefits				853,658		659,787
	Occupancy				88,487		77,889
	Equipment				190,824		156,217
	Marketing and public relations				78,236		61,060
	Amortization of intangibles				44,528		46,320
	Other				294,760		332,205
		Total non-interest expense			1,550,493		1,333,478
Net income before tax					706,138		528,652
Income taxes					246,850		183,400
Net income				$	459,288	$	345,252
Basic earnings per common share				$	0.29	$	0.22
Diluted earnings per common share				$	0.28	$	0.21

FIRST COMMUNITY CORPORATION
Statement of Changes in Shareholder’s Equity and Comprehensive Income
Six Months ended June 30, 2002 and June 30, 2003

												Accumulated
						Additional						Other
		Shares		Common		Paid-in			Retained			Comprehensive
		Issued		Stock		Capital			Earnings			Income			Total
Balance, December 31, 2001			1,270,609	$	1,270,609	$	13,088,744		$	2,144,611		$	272,238		$	16,776,202
Comprehensive Income:
	Net income									657,748						657,748
	Accumulated other comprehensive income net of income tax of $68,941												145,842			145,842
Total comprehensive income																803,590
Cash dividend ($0.04 per share)										(63,519	)					(63,519	)
5-for-4 stock split			317,361		317,361		(317,361	)		(4,181	)					(4,181	)
Balance, June 30, 2002			1,587,970	$	1,587,970	$	12,771,383		$	2,734,659		$	418,080		$	17,512,092
Balance, December 31, 2002			1,587,970	$	1,587,970	$	12,771,383		$	3,414,234		$	665,136		$	18,438,723
Comprehensive Income:
	Net income									909,397						909,397
	Accumulated other comprehensive (loss) net of income tax benefit of $77,282												(131,365	)		(131,365	)
Total comprehensive income																778,032
Cash dividend ($0.10 per share)										(142,994	)					(142,994	)
Options exercised			1,474		1,474		1,062			—						2,536
Balance, June 30, 2003			1,589,444	$	1,589,444	$	12,772,445		$	4,180,637		$	533,771		$	19,076,297

FIRST COMMUNITY CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

					Six months ended June 30,
					2003			2002
Cash flows from operating activities:
	Net income				$	909,397		$	657,748
	Adjustments to reconcile net income to net cash used in operating activities:
		Depreciation				283,034			241,529
		Premium amortization (discount accretion)				137,567			47,812
		Provision for loan losses				97,000			437,000
		Amortization of intangibles				89,653			92,640
		Gain on sale of securities				—			(60,616	)
		Increase in other assets				98,771			(286,378	)
		Increase (decrease) in other liabilities				239,827			(305,878	)
			Net cash provided in operating activities			1,855,249			823,857
Cash flows from investing activities:
	Purchase of investment securities available-for-sale					(20,900,224	)		(24,514,711	)
	Maturity of investment securities available-for-sale					32,545,651			16,226,055
	Purchase of investment securities held-to-maturity					(500,000	)		(443,377	)
	Maturity of investment securities held-to-maturity					760,000			—
	Increase in loans					(11,661,472	)		(9,098,560	)
	Purchase of property and equipment					(797,610	)		(380,668	)
				Net cash used in investing activities		(553,655	)		(18,211,261	)
Cash flows from financing activities:
	Increase in deposit accounts					13,812,557			21,071,542
	Increase in securities sold under agreements to repurchase					(1,496,864	)		1,027,100
	Increase (Decrease) in other borrowings					10,102			(35,985	)
	Proceeds from exercise of stock options					2,536			—
	Dividends paid					(142,994	)		(63,519	)
	Cash in lieu of fractional shares					—			(4,181	)
				Net cash provided from financing activities		12,185,337			21,994,957
Net increase (decrease) in cash and cash equivalents						13,486,931			4,607,553
Cash and cash equivalents at beginning of period						17,843,276			14,838,805
Cash and cash equivalents at end of period					$	31,330,207		$	19,446,358
Supplemental disclosure:
	Cash paid during the period for:
		Interest			$	1,247,867		$	1,545,408
		Income taxes			$	525,000		$	522,987
	Non-cash investing and financing activities:
		Unrealized gain (loss) on securities available-for-sale			$	(218,013	)	$	179,178

FIRST COMMUNITY CORPORATION

Note to Consolidated Financial Statements

June 30, 2003

Note 1 — Basis of Presentation

The consolidated financial statements include the accounts of First Community Corporation and its wholly owned subsidiary First Community Bank, N.A. All material inter-company transactions are eliminated in consolidation. In the opinion of management, the unaudited financial statements reflect all adjustments necessary for a fair presentation of the balance sheet and results of operations for the periods presented.

Note 2 — EARNINGS PER SHARE

The following reconciles the numerator and denominator of the basic and diluted earnings per share computation:

					Six months ended June 30,				Three months ended March 31,
					2003		2002		2003		2002
Numerator (included in basic and diluted earnings per share)					$	909,397	$	657,748	$	459,288	$	345,252
Denominator
	Weighted average common shares outstanding for:
		Basic earnings per share				1,588,719		1,587,970		1,589,444		1,587,970
			Dilutive securities:
				Stock options — Treasury stock method		72,140		66,688		75,323		62,052
		Diluted earnings per share				1,660,859		1,654,658		1,664,767		1,650,022
The average market price used in calculating assumed number of shares					$	17.77	$	12.58	$	18.45	$	13.52

Note 3 — Stock Based Compensation

The company has a stock based compensation plan as of June 30, 2003. The accounting for the plan is based on Accounting Principles Board Opinion No. #25 (APB 25). Accordingly, no compensation cost has been recognized in the financial statements. In accordance with Statement of Financial Accounting Standard No. 123 “Accounting for Stock Based Compensation” (SFAS 123) the company has elected to provide the disclosure-only option provided for by SFAS 123.

		Six months ended June 30,				Three months ended March 31,
		2003		2002		2003		2002
Net income as reported		$	909,397	$	657,748	$	459,288	$	345,252
Less: Stock based compensation using fair value method (net of tax)			10,300		11,650		5,000		5,834
Pro forma net income		$	899,097	$	646,098	$	454,288	$	339,418
Basic earnings per share
	As reported	$	0.57	$	0.41	$	0.29	$	0.22
	Pro forma	$	0.57	$	0.41	$	0.29	$	0.21
Diluted earnings per share
	As reported	$	0.55	$	0.40	$	0.28	$	0.21
	Pro forma	$	0.54	$	0.39	$	0.27	$	0.21

Item 2. Management’s Discussion and Analysis

This Report contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements are based on many assumptions and estimates and are not guarantees of future performance. Our actual results may differ materially from those projected in the forward-looking statements, as they will depend on many factors, which are beyond our control. The words “may,” “would,” “could,” “will,” “expect,” “anticipate,” “believe,” “intend,” “plan,” and “estimate,” as well as similar expressions, are meant to identify such forward-looking statements. Potential risk and uncertainties include but are not limited to:

• significant increases in competitive pressure in the banking and financial services industries;

• changes in the interest rate environment which could reduce anticipated or actual margins;

• changes in political conditions or the legislative or regulatory environment;

• the level of allowance for loan loss;

• the rate of delinquencies and amounts of charge-offs;

• the rate of loan growth;

• adverse changes in asset quality and resulting credit risk-related losses and expenses;

• general economic conditions, either nationally or regionally and especially in primary service area, becoming less favorable than expected resulting in, among other things, a deterioration in credit quality;

• changes occurring in business conditions and inflation;

• changes in technology;

• changes in monetary and tax policies;

• changes in securities markets; and

• other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission.

Comparison of Results of Operations for Six Months Ended June 30, 2003 to the Six Months Ended June 30, 2002:

Net Income

The Company’s net income was $909,000 or $.55 diluted earnings per share for the six months ended June 30, 2003 as compared to net income of $658,000 or $.40 per share for the six months ended June 30, 2002. This improvement in net income reflects the continued growth in the level of earning assets during the two periods. The level of average earning assets was $189.8 million for the six months ended June 30, 2003 as compared to $154.6 million for the six months ended June 30, 2002. This reflects a 22.8% increase in the level average earning assets for the two periods. The increase in average earning assets resulted in an increase in net interest income of

Item 2. Management’s Discussion and Analysis (Continued) Page 2

$393,000 in the first half of 2003 as compared to the first half of 2002. In addition, non-interest income increased $96,000 in first six months of 2003 as compared to the first six months of 2002. This increase results primarily from increased deposit account service fees of $54,000 and mortgage loan fees of $89,000. The increases in net interest income and non-interest income were offset by an increase of $440,000 in non-interest expense in the first six months of 2003 as compared to the first six months of 2002. During the first six months of 2003 the company had income tax expense of $487,000 as compared to $350,000 for the comparable period in 2002.

Net Interest Income

The table on page 9 shows yield and rate data for interest-bearing balance sheet components during the six month periods ended June 30, 2003 and 2002, along with average balances and the related interest income and interest expense amounts.

Net interest income was $3.8 million during the six months ended June 30, 2003 as compared to $3.4 million for the six months ended June 30, 2002. The yield on earning assets for the six months ended June 30, 2003 was 5.3% as compared to 6.2% for the six months ended June 30, 2002. The cost of interest bearing liabilities also came down in the first six months of 2003 to 1.7% compared to 2.2% for the six months ended June 30, 2002. The largest component of interest income for the six months ended June 30, 2003 was interest on loans and amounted to $3.7 million as compared to $3.4 million for the comparable prior year period. The overall yield on loans was 7.0% for the six months ended June 30, 2003 as compared to 7.6% for the six months ended June 30, 2002. The investment portfolio income decreased slightly by $13,000 during the first six months of 2003 as compared to the same period in 2002. The increase of $12.2 million in average investment balances from $52.2 million during 2002 to $64.4 million during 2003 was more than offset by a decline in the yield realized on investments during the two periods. The average yield on the investment portfolio for the first six months of 2003 was 3.8% as compared to 4.8% during the same period of 2002. Interest income on short-term overnight investments was $99,000 for the six months ended June 30, 2003 as compared to $89,000 for the six month period ended June 30, 2002. The yield on these overnight investments dropped from 1.7% for the six months ended June 30 2002 to 1.1% for the first six months of 2003. The average balances were $18.2 million for the six months ended June 30, 2003 as compared to $10.6 million for the same period in 2002.

Interest expense during the six months ended June 30, 2003 was $1.3 million with an average rate paid on interest-bearing liabilities of 1.7% as compared to $1.4 million and 2.2% during the six months ended June 30, 2002. Average interest-bearing liabilities increased to $153.4 million for the six months ended June 30, 2003 as compared to $128.0 million for the six months ended June 30, 2002.

The company is liability sensitive and as a result would generally benefit from decreasing market rates and is negatively impacted during a rising rate environment. The company closely monitors the pricing and maturity of its assets and liabilities in order to diminish the potential adverse impact that changes in interest rates could have on its net interest income. The company has

Item 2. Management’s Discussion and Analysis (Continued) Page 3

established guidelines for monitoring interest sensitivity and uses both a gap analysis and asset/liability modeling to assess and monitor the impact of changing interest rates. Neither of these methods are precise indicators of the interest sensitivity position of the company due to the many factors that affect net interest income including changes in the volume and mix of earning assets and interest-bearing liabilities. Due to the fact that market interest rates are at their lowest levels in many years, further declines in interest rates may not result in the same magnitude of change in asset and liability repricing and would result in a adverse pressure on the company’s net interest margin. Certain core deposits may have already priced to floor levels, making it unlikely that the company could adjust these liability rates by the same magnitude of any further rate declines.

Provision and Allowance for Loan Losses

At June 30, 2003 the allowance for loan losses amounted to $1.9, or 1.6% as compared to $1.6 million or 1.5% at December 31, 2002. The company’s provision for loan loss was $97,000 for the six months ended June 30, 2003 as compared to $437,000 for the six months ended June 30, 2002. The provision was made based on management’s assessment of general loan loss risk and asset quality. The objective of management is to maintain the allowance for loan losses at approximately 1.1% to 1.5% of total loans. During 2002 management began to build it’s reserves to the mid to upper range of this objective due to declining economic conditions and increased charge-offs in 2001 and 2002. During the first six months of 2003 the company has recovered certain of these charge-offs and has slightly exceeded its target for the allowance for loan losses. As a result, the provision for loan losses was funded at a lower amount for the six months ended June 30, 2003 as compared to the same period in 2002. At June 30, 2003 the company had $138,000 in loans delinquent more than 90 days, and loans totaling $335,000 that were delinquent more than 30 days. The company had two loans in a nonaccrual status in the amount of $242,000 at June 30, 2003.

Item 2. Management’s Discussion and Analysis (Continued) Page 4

Allowance for Loan Losses

(Dollars in thousands)			Six Month Ended June 30
			2003			2002
Average loans outstanding			$	107,227		$	91,794
Loans outstanding at period end			$	111,881		$	96,478
Total non-performing loans			$	242		$	93
Beginning balance of allowance			$	1,525		$	1,000
Loans charged-off:
	1-4 family residential mortgage			—			—
	Home equity			—			—
	Commercial			—			141
	Installment & credit card			6			1
		Total loans charged-off		6			142
Recoveries:
	1-4 family residential mortgage			—			—
	Home equity			—			—
	Commercial			234			3
	Installment & credit card			1			—
		Total recoveries		235			3
Net loan charge offs (recoveries)				229			139
Provision for loan losses				97			437
Balance at period end			$	1,851		$	1,298
Net charge-offs to average loans				(0.21	%)		0.15	%
Allowance as percent of total loans				1.65	%		1.35	%
Non-performing loans as % of total loans				0.21	%		0.09	%
Allowance as % of non-performing loans				764.9	%		1,395.7	%

Accrual of interest is discontinued on loans when management believes, after considering economic and business conditions and collection efforts that a borrower’s financial condition is such that the collection of interest is doubtful. A delinquent loan is generally placed in nonaccrual status when it becomes 90 days or more past due. At the time a loan is placed in nonaccrual status, all interest, which has been accrued on the loan but remains unpaid is reversed and deducted from earnings as a reduction of reported interest income. No additional interest is accrued on the loan balance until the collection of both principal and interest becomes reasonably certain.

Potential Problem Loans. A potential problem loan is one in which management has serious doubts about the borrower’s future performance under the terms of the loan contract. These loans are current as to principal and interest and, accordingly, they are not included in nonperforming assets categories. At June 30, 2003, the company had no loans considered by management to be potential problem loans. The level of potential problem loans is one factor to be used in the determination of the adequacy of the allowance for loan losses.

Item 2. Management’s Discussion and Analysis (Continued) Page 5

Non-interest Income and Expense

Non-interest income during the six months ended June 30, 2003 was $708,000 as compared to $612,000 for the six months ended June 30, 2002. Non-interest income for the six months ended June 30, 2002 included a gain on the sale of securities available-for-sale of $61,000. Increases in non-interest income included an increase in deposit service charges of $54,000 as well as an increase in mortgage loan fees of $89,000 from $104,000 in 2002 to $193,000 in 2003. The increase in deposit service charges is a result of the growth in deposits between the two periods. The increase in mortgage loan fees is a result of the extremely low mortgage loan rates and the resulting increased home purchases and refinancings.

Total non-interest expense increased by $440,000 during the first six months of 2003 as compared to the same period of 2002. Salaries and employee benefits increased $319,000 in the first six months of 2003 as compared to the same period in 2002. The bank had nine more full time equivalent employees at June 30, 2003 as compared to the same date in 2002. The increase in staffing is a result of increasing staff throughout the company as a result of continued growth. Equipment expense increased to $353,000 in the first six months of 2003 as compared to $299,000 in the same period of 2002. The increase in equipment expense is a result increases in maintenance contracts as well as additional cost to upgrade equipment. A $42,000 increase in marketing expense is a result of planned adjustments to marketing efforts in 2003 as compared to 2002.

Comparison of Results of Operations for Three Months Ended June 30, 2003 to the Three Months Ended June 30, 2002:

Net income for the second quarter of 2003 was $459,000 ($0.28 per diluted share), as compared to $345,000 ($0.21 per diluted share) during the comparable period in 2002. This increase is partially due to an increase in net interest income of $144,000 for the three months ended June 30, 2003 from $1.8 million in 2002 to $1.9 million in 2002. In addition, non-interest income increased by $35,000 from $363,000 for the six months ended June 30, 2002 to $398,000 in the same period of 2003.

Average earning assets were $190.9 million during the second quarter of 2003 as compared to $160.0 million during the second quarter of 2002. The table on page 10 shows yield and rate data for interest-bearing balance sheet components during the three month periods ended June 30, 2003 and 2002, along with average balances and the related interest income and interest expense amounts. The yield on average earning assets decreased to 5.3% in the second quarter of 2003 as compared to 6.1% in the second quarter of 2002. The cost of interest bearing liabilities was 1.6% in second quarter of 2003 as compared to 2.0% in the second quarter of 2002.

Total non-interest income increased by $35,000 during the second quarter of 2003 as compared to the same period in 2002. Non-interest income in 2002 includes a $61,000 gain on the sale of

Item 2. Management’s Discussion and Analysis (Continued) Page 6

securities and no gains were realized in the second quarter of 2003. Deposit service charges increased by $31,000 and mortgage loan fees increased by $49,000 in the three months ended June 30, 2003 as compared to the same period in 2002. As explained in the six month results increased deposit balances and the low interest rate environment contributed to these increases.

The provision for loan losses was $45,000 for the three months ended June 30, 2003 as compared to $260,000 during the same period in 2002. As explained in the analysis of the six months results the company began to build its allowance for loan losses in 2002 and has subsequently recovered certain prior charge-offs and has funded the allowance at lower levels in 2003 as compared to 2002.

Total non-interest expense increased by $217,000 in the second quarter of 2003 as compared to the same quarter of 2002. This increase is primarily a result of a $194,000 increase in salary and benefits expense, and a $35,000 increase in equipment expense. The increase in salary and benefits was a result of having approximately eight more full time equivalent employees during the second quarter of 2003 as compared to the same period in 2002. The increase in equipment expense was primarily a result of cost associated with upgrading data communications equipment between branches as well as introducing internet banking in the second quarter of 2003.

Financial Position

Assets totaled $208.4 million at June 30, 2003 as compared to $195.2 million at December 31, 2002 an increase of $13.2 million. At June 30, 2003, loans accounted for 58.6% of earning assets, as compared to 55.6% at December 31, 2002. Loans grew by $11.9 million during the six months ended June 30, 2003 from $100.0 million at December 31, 2002 to $111.9 million at June 30, 2003. The loan to deposit ratio at June 30, 2003 was 61.5% as compared to 59.5% at December 31, 2002. It is anticipated that this ratio will increase as management attempts to invest more of its assets in the higher earning loan portfolio as compared to the investment portfolio. Earning asset growth was funded by growth in deposits of $13.8 million from $168.1 million at December 31, 2002 to $181.9 million at June 30, 2003.

Loans. Loans typically provide higher yields than the other types of earning assets, and thus one of the bank’s goals is to have loans be the largest category of the bank’s earning assets Associated with the higher loan yields are the inherent credit and liquidity risks which management attempts to control and counterbalance. Management is committed to achieving its asset mix goals management without sacrificing asset quality. Loans averaged $107.2 million during for the six months ended June 30, 2003.

Item 2. Management’s Discussion and Analysis (Continued) Page 7

     The following table shows the composition of the loan portfolio by category:

(In thousands)			June 30						December 31,
			2003						2002
			Amount			Percent			Amount			Percent
Commercial, financial & agricultural			$	11,392			10.2	%	$	10,688			10.7	%
Real estate:
	Construction			5,261			4.7	%		7,533			7.5	%
	Mortgage — residential			10,507			9.4	%		11,055			11.1	%
	Mortgage — commercial			68,938			61.6	%		55,290			55.3	%
Consumer				15,783			14.1	%		15,425			15.4	%
		Total gross loans		111,881			100.0	%		99,991			100.0	%
Allowance for loan losses				(1,851	)					(1,525	)
		Total net loans	$	110,030					$	98,466

In the context of this discussion, a real estate mortgage loan is defined as any loan, other than loans for construction purposes, secured by real estate, regardless of the purpose of the loan. The company follows the common practice of financial institutions in the company’s market area of obtaining a security interest in real estate whenever possible, in addition to any other available collateral. This collateral is taken to reinforce the likelihood of the ultimate repayment of the loan and tends to increase the magnitude of the real estate loan components. Generally the company limits the loan-to-value ratio to 80%.

Liquidity and Capital Resources

The company’s liquidity remains adequate to meet operating and loan funding requirements. Federal funds sold and investment securities available-for sale represent 35.2% of total assets June 30, 2003. Management believes that its existing stable base of core deposits along with continued growth in this deposit base will enable the company to meet its long and short term liquidity needs successfully. These needs include the ability to respond to short-term demand for funds caused by the withdrawal of deposits, maturity of repurchase agreements, term extensions of credit and for the payment of operating expenses. Sources of liquidity in addition to deposit gathering activities include maturing loans and investments, purchase of federal funds from other financial institutions and selling securities under agreements to repurchase. The company monitors closely the level of large certificates of deposits in amounts of $100,000 or more as they tend to be extremely sensitive to interest rate levels, and thus less reliable sources of funding for liquidity purposes. At June 30, 2003 the amount of certificates of deposits of $100,000 or more represented 15.3% of total deposits. These deposits are issued to local customers many of which have other product relationships with the bank and none are brokered deposits. Through the operations of our bank, we have made contractual commitments to extend credit in the ordinary course of our business activities. These commitments are legally binding

Item 2. Management’s Discussion and Analysis (Continued) Page 8

agreements to lend money to our customers at predetermined interest rates for a specified period of time. At June 30, 2003, we had issued commitments to extend credit of $20.3 million, including $9.5 million in unused home equity lines of credit, through various types of lending arrangements. We evaluate each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by us upon extension of credit, is based on our credit evaluation of the borrower. Collateral varies but may include accounts receivable, inventory, property, plant and equipment, commercial and residential real estate. We manage the credit risk on these commitments by subjecting them to normal underwriting and risk management processes. Management is not aware of any trends, events or uncertainties that may result in a significant adverse effect on the company’s liquidity position. However, no assurances can be given in this regard, as rapid growth, deterioration in loan quality, and poor earnings, or a combination of these factors, could change the company“s liquidity position in a relatively short period of time.

     The capital needs of the company have been primarily met to date through the initial common stock offering which raised approximately $6.8 million and in July 1998 the company raised an additional $6.6 million in net proceeds through a secondary offering. This capital along with continued retained earnings is expected to be sufficient to fund the operations of the bank. The company’s management anticipates that the bank will remain a well capitalized institution. Shareholders’ equity was 9.2% of total assets at June 30, 2003 as compared to 9.4% at December 31, 2002. The bank’s risked-based capital ratios of Tier 1, total capital and leverage ratio were 11.0%, 12.2% and 7.1%, respectively at June 30, 2003. The company’s risked-based capital ratios of Tier 1, total capital and leverage ratio were 13.3%, 14.6% and 8..7%, respectively at June 30, 2003. This compares to required OCC and Federal Reserve regulatory capital guidelines for Tier 1 capital, total capital and leverage capital ratios of 4.0%, 8.0% and 3.0%, respectively.

Item 2. Management’s Discussion and Analysis (Continued) Page 9

FIRST COMMUNITY CORPORATION
Yields on Average Earning Assets and Rates
on Average Interest-Bearing Liabilities

					Six months ended June 30, 2003								Six months ended June 30, 2002
					Average			Interest		Yield/			Average			Interest		Yield/
					Balance			Earned/Paid		Rate			Balance			Earned/Paid		Rate
Assets
Earning assets
	Loans				$	107,227,473		$	3,703,170		6.96	%	$	91,794,082		$	3,446,608		7.57	%
	Securities:					64,377,167			1,226,715		3.84	%		52,152,712			1,239,981		4.79	%
	Federal funds sold and securities purchased under agreements to resell					18,157,439			99,185		1.10	%		10,608,097			89,240		1.70	%
				Total earning assets		189,762,079			5,029,070		5.34	%		154,554,891			4,775,829		6.23	%
Cash and due from banks						6,286,097								4,581,508
Premises and equipment						7,159,032								6,641,525
Other assets						2,170,242								2,337,079
Allowance for loan losses						(1,655,390	)							(1,073,196	)
				Total assets	$	203,722,060							$	167,041,807
Liabilities
Interest-bearing liabilities
	Interest-bearing transaction accounts				$	32,884,957		$	33,564		0.21	%	$	22,643,426		$	36,218		0.32	%
	Money market accounts					27,364,584			135,543		1.00	%		26,802,687			216,577		1.63	%
	Savings deposits					11,420,672			42,092		0.74	%		8,634,107			40,997		0.96	%
	Time deposits					75,103,232			1,043,627		2.80	%		64,909,050			1,096,578		3.41	%
	Other short term borrowings					6,661,708			16,723		0.51	%		4,974,511			21,367		0.87	%
			Total interest-bearing liabilities			153,435,153			1,271,549		1.67	%		127,963,781			1,411,737		2.22	%
Demand deposits						30,330,078								21,037,507
Other liabilities						1,231,100								970,709
Shareholders’ equity						18,725,729								17,069,810
		Total liabilities and shareholders’ equity			$	203,722,060							$	167,041,807
Net interest spread											3.67	%							4.01	%
Net interest income/margin								$	3,757,521		3.99	%				$	3,364,092		4.39	%

Item 2. Management’s Discussion and Analysis (Continued) Page 10

FIRST COMMUNITY CORPORATION
Yields on Average Earning Assets and Rates
on Average Interest-Bearing Liabilities

					Three months ended June 30, 2003								Three months ended June 30, 2002
					Average			Interest		Yield/			Average			Interest		Yield/
					Balance			Earned/Paid		Rate			Balance			Earned/Paid		Rate
Assets
Earning assets
	Loans				$	110,424,115		$	1,882,690		6.84	%	$	93,915,833		$	1,753,424		7.49	%
	Securities:					60,819,866			583,849		3.85	%		54,491,313			635,070		4.67	%
	Federal funds sold and securities purchased under agreements to resell					19,692,430			52,680		1.07	%		11,586,434			49,823		1.72	%
				Total earning assets		190,936,411			2,519,219		5.29	%		159,993,580			2,438,317		6.11	%
Cash and due from banks						6,678,217								4,841,241
Premises and equipment						7,240,775								6,659,861
Other assets						2,131,256								2,392,213
Allowance for loan losses						(1,754,896	)							(1,105,822	)
				Total assets	$	205,231,763							$	172,781,073
Liabilities
Interest-bearing liabilities
	Interest-bearing transaction accounts				$	34,972,116		$	17,466		0.20	%	$	25,864,437		$	20,001		0.31	%
	Money market accounts					24,676,343			59,315		0.96	%		27,868,406			110,173		1.59	%
	Savings deposits					12,630,698			24,079		0.76	%		8,945,638			21,328		0.96	%
	Time deposits					75,424,256			507,271		2.70	%		64,912,660			516,507		3.19	%
	Other short term borrowings					6,196,613			7,795		0.50	%		5,010,402			11,092		0.89	%
			Total interest-bearing liabilities			153,900,026			615,926		1.61	%		132,601,543			679,101		2.05	%
Demand deposits						31,189,323								22,094,743
Other liabilities						1,292,922								924,452
Shareholders’ equity						18,849,492								17,160,335
		Total liabilities and shareholders’ equity			$	205,231,763							$	172,781,073
Net interest spread											3.68	%							4.06	%
Net interest income/margin								$	1,903,293		4.00	%				$	1,759,216		4.41	%

PART II
OTHER INFORMATION

Item 1. Legal Proceedings.

     There are no material pending legal proceedings to which the company or any of its subsidiaries is a party or of which any of their property is the subject.

Item 2. Changes in Securities.

     (a)  Not applicable

     (b)  Not applicable

Item 3. Defaults Upon Senior Securities.

     Not Applicable

Item 4. Submission of Matters to a Vote of Security Holders.

     The Annual Meeting of Shareholders was held on April 24, 2003. The following three directors were elected at the meeting:

	VOTES
	For		Against/Withheld
Chimin J. Chao		1,284,645		1,437
James C. Leventis		1,284,645		1,437
Loretta R. Whitehead		1,284,645		1,437

The following ten Directors term of office continued after the meeting:

Richard K. Bogan	George H. Fann
Thomas C. Brown	W. James Kitchens, Jr.
Michael C. Crapps	Angelo L. Tsiantis
Hinton G. Davis	Mitchell M. Willoughby
Anita B. Easter
O.A. Ethridge DMD

ITEM 5. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

An evaluation of the Registrant’s disclosure controls and procedures (as defined in Section 13(a) 4(c) of the Securities Exchange Act of 1934 (the “Act”)) was carried out under the supervision and with the participation of the Registrant’s Chief Executive Officer, Chief Financial Officer within the 90-day period preceding the filing date of this Quarterly report. The Registrant’s Chief Executive Officer and Chief Financial Officer concluded that the Registrant’s disclosure controls and procedures as currently in effect are effective in ensuring that the information required to be disclosed by the Registrant in the reports it files or submits under the Act is (i) accumulated and communicated to the Registrant’s management (including the Chief Executive Officer and Chief Financial Officer) in a timely manner, and (ii) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

Changes in Internal Controls

In the quarter ended June 30, 2003, the Registrant did not make any significant changes in, nor take any corrective actions regarding, its internal controls or other factors that could significantly affect those controls.

Item 6. Exhibits and Reports on Form 8-K.

(a)	The following documents are filed as part of this report:
	3.1	Amended and Restated Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement No. 33-86258 on Form S-1).
	3.2	Bylaws (incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement No. 33-86258 on Form S-1).
	4.1	Provisions in the Company’s Articles of Incorporation and Bylaws defining the rights of holders of the Company’s Common Stock (incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement No. 33-86258 on Form S-1).
	10.1	Employment Agreement dated June 1, 1994, by and between Michael C. Crapps and the Company (incorporated by reference to Exhibit 10.1 to the Company’s Registration Statement no. 33-86258 on Form S-1).*
	10.2	Employment Agreement dated June 1, 1994, by and between James C. Leventis and the Company (incorporated by reference to Exhibit 10.2 to the Company’s Registration Statement No. 33-86258 on Form S-1).*
	10.3	First Community Corporation 1999 Stock Incentive Plan (Incorporated by reference to the company’s 1998 Annual Report on form 10KSB)
	10.4	Employment Agreement dated September 2, 2002 by and between David K. Proctor and the company (incorporated by reference to the company’s 2002 Annual report on form 10KSB).*
	10.5	Employment Agreement dated June 12, 2002 by and between Joseph G. Sawyer and the Company (incorporated by reference to the company’s 2002 Annual report on form 10KSB).*
	99.1	Certification Pursuant to 18 U.S. C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

* Denotes executive compensation contract or arrangement.

(b)	Reports on Form 8-K.
	A report on form 8-K was filed April 24, 2003 announcing the company’s results for the first quarter of 2003 and announcing that the board of directors had approved a quarterly cash dividend. The company declared a $.05 per share dividend, payable May 15, 2003 to shareholders of record as of April,30 2003.
	No other reports on Form 8-K were filed in the second quarter of 2003.

SIGNATURES

     In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	FIRST COMMUNITY CORPORATION (REGISTRANT)
Date August 11, 2003	By:	/s/ Michael C. Crapps Michael C. Crapps President and Chief Executive Officer
	By:	/s/ Joseph G. Sawyer Joseph G. Sawyer Senior Vice President, Principal Financial Officer

Certification

I, Michael C. Crapps, certify that:

1.	I have reviewed this quarterly report on Form 10-QSB of First Community Corporation;
2.	Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
3.	Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
4.	The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a)	designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
b)	evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report for June 30, 2003; and
c)	presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors.

a)	all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and
b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and

6. The registrant’s other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date: August 11, 2003
	/s/ Michael C. Crapps Michael C. Crapps President and CEO

Certification

I, Joseph G. Sawyer, certify that:

7.	I have reviewed this quarterly report on Form 10-QSB of First Community Corporation;
8.	Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
9.	Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
10.	The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a)	designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
b)	evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report June 30, 2003; and
c)	presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

11. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors.

a)	all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses                      in internal controls; and
b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and

12. The registrant’s other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date: August 11, 2003
	/s/ Joseph G. Sawyer Joseph G. Sawyer Senior Vice President and CFO