UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)  

[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended:   March 31, 2005

[   ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ___________ to _____________

Commission file number 000-28344

FIRST COMMUNITY CORPORATION
(Exact name of registrant as specified in its charter)

               South Carolina                                   57-1010751               
(State of Incorporation)     (I.R.S. Employer Identification No.)

5455 Sunset Boulevard, Lexington, South Carolina 29072
(Address of Principal Executive Offices)

(803) 951-2265
(Registrant's Telephone Number, Including Area Code)

Not Applicable
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

        Indicated by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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      

        Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes        No  X  

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

2,832,931 shares of common stock, par value $1.00 per share, were issued and outstanding as of April 30, 2005.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION Item 1. Financial Statements.
                    Consolidated Balance Sheets
                    Consolidated Statements of Income
                    Consolidated Statements of Shareholders' Equity and Comprehensive Income (loss)
                    Consolidated Statements of Cash Flows
                    Notes to Consolidated Financial Statements
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures

PART II – OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits
INDEX TO EXHIBITS
SIGNATURES
EXHIBIT 31.1 Rule 13a-14(a) Certification of Principal Executive Officer.
EXHIBIT 31.2 Rule 13a-14(a) Certification of the Principal Financial Officer.
EXHIBIT 32 Section 1350 Certifications.



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PART I — FINANCIAL INFORMATION
Item 1.   Financial Statements.

FIRST COMMUNITY CORPORATION
CONSOLIDATED BALANCE SHEETS

March 31,
2005 December 31,
(Unaudited)
2004
                                                ASSETS            
Cash and due from banks     $ 10,803,800   $ 9,391,494  
Interest-bearing bank balances       1,992,212     803,426  
Federal funds sold and securities purchased under            
  agreements to resell       10,589,332     9,130,725  
Investment securities - available for sale       180,235,357     190,010,307  
Investment securities - held to maturity (market value of            
  $5,726,546 and $6,147,698 at March 31, 2005 and            
  December 31, 2004, respectively)       5,682,838     6,015,745  
Loans       190,071,719     186,771,344  
Less, allowance for loan losses       2,855,624     2,763,988  
   Net loans       187,216,095     184,007,356  
Property, furniture and equipment - net       14,392,667     14,313,090  
Goodwill       24,256,020     24,256,020  
Intangible assets       3,213,130     3,361,815  
Other assets       15,756,985     14,416,034  
    Total assets     $ 454,138,436   $ 455,706,012  
                                        LIABILITIES            
Deposits:            
  Noninterest bearing demand     $ 52,423,840   $ 49,519,816  
  NOW and money market accounts       99,011,773     98,846,828  
  Savings       31,544,580     35,370,267  
  Time deposits less than $100,000       99,759,985     100,629,304  
  Time deposits $100,000 and over       54,899,174     52,698,069  
     Total deposits       337,639,352     337,064,284  
Securities sold under agreements to repurchase       7,688,000     7,549,900  
Federal Home Loan Bank advances       41,776,292     42,452,122  
Long-term debt       15,464,000     15,464,000  
Other borrowed money       156,240     184,593  
Other liabilities       2,043,390     2,528,424  
    Total liabilities       404,767,274     405,243,323  
                 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            
    2,830,962 at March 31, 2005 and 2,788,902 at            
    December 31, 2004       2,830,962     2,788,902  
Additional paid in capital       42,168,312     41,832,090  
Retained earnings       7,353,670     6,712,849  
Accumulated other comprehensive income       (2,981,782 )   (871,152 )
 Total shareholders' equity       49,371,162     50,462,689  
    Total liabilities and shareholders' equity     $ 454,138,436   $ 455,706,012  

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FIRST COMMUNITY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME

Three Months ended March 31,
2005
2004
Interest income:            
  Loans, including fees     $ 3,014,636   $ 2,001,792  
  Investment securities       1,765,414     543,413  
  Federal funds sold and securities purchased            
    under resale agreements       73,757     29,421  
  Other       10,568     433  
       Total interest income       4,864,375     2,575,059  
Interest expense:            
  Deposits       1,106,333     517,905  
  Federal funds sold and securities sold under agreement            
   to repurchase       36,344     6,000  
  Other borrowed money       551,918     27,701  
      Total interest expense       1,694,595     551,606  
Net interest income       3,169,780     2,023,453  
Provision for loan losses       66,000     66,000  
Net interest income after provision for loan losses       3,103,780     1,957,453  
Noninterest income:            
  Deposit service charges       282,033     189,053  
  Mortgage origination fees       78,552     57,717  
  Gain on sale of securities       181,097     -  
  Other       197,621     130,985  
      Total noninterest income       739,303     377,755  
Noninterest expense:            
  Salaries and employee benefits       1,509,452     901,441  
  Occupancy       185,306     100,975  
  Equipment       329,583     223,739  
  Marketing and public relations       87,629     98,326  
  Amortization of intangibles       148,685     44,528  
  Other       524,532     330,382  
      Total noninterest expense       2,785,187     1,699,391  
Net income before tax       1,057,896     635,817  
  Income taxes       277,630     213,950  
Net income     $ 780,266   $ 421,867  
Basic earnings per common share     $ 0.28   $ 0.26  
Diluted earnings per common share     $ 0.26   $ 0.25  

4

FIRST COMMUNITY CORPORATION

Consolidated Statement of Changes in Shareholders’ Equity and Comprehensive Income (loss)Three
Months ended March 31, 2005 and March 31, 2004

Accumulated
Additional Other
Shares Common Paid-in Retained Comprehensive
Issued Stock Capital Earnings Income (loss) Total
 
Balance, December 31, 2003       1,597,224   $ 1,597,224   $ 12,862,715   $ 4,909,742   $ 139,133   $ 19,508,814  
Comprehensive Income:                            
  Net income                   421,867         421,867  
  Other comprehensive income:                            
     Unrealized gain arising during                            
     period net of tax of $94,493                       175,487     175,487  
Comprehensive income                           597,354  
Dividends paid ($0.05 per share)                   (79,868 )       (79,868 )
Dividend reinvestment plan       1,177     1,177     26,452             27,629  
Balance, March 31, 2004       1,598,401   $ 1,598,401   $ 12,889,167   $ 5,251,741   $ 314,620   $ 20,053,929  
     
Balance, December 31, 2004       2,788,902   $ 2,788,902   $ 41,832,090   $ 6,712,849   $ (871,152 ) $ 50,462,689  
Comprehensive Income:                            
  Net income                   780,266         780,266  
  Other comprehensive loss:                            
     Unrealized loss arising during                            
     period net of income tax                            
     benefit of ($1,073,105)      <