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

FORM 10-Q

(Mark One)  

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the
  quarterly period ended March 31, 2007

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)

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

Indicate 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       No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.
Large accelerated filer        Accelerated filer        Non-accelerated filer  

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

Indicate the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: On April 30, 2007, 3,221,207 shares of the issuer’s common stock, par value $1.00 per share, were issued and outstanding.

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. Management’s 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 1A. Risk Factors
   Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
   Item 3. Defaults Upon Senior Securities
   Item 4. Submission of Matters to a Vote of Security Holders
   Item 5.  Other Information
   Item 6. Exhibits

INDEX TO EXHIBITS
SIGNATURES
EX-31.1 RULE 13A-14(A) CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
EX-31.2 RULE 13A-14(A) CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
EX-32 SECTION 1350 CERTIFICATIONS





2

PART I
FINANCIAL INFORMATION
Item 1.   Financial Statements

FIRST COMMUNITY CORPORATION
CONSOLIDATED BALANCE SHEETS

March 31,
2007 December 31,
(Unaudited)        2006      
                             ASSETS            
Cash and due from banks     $ 12,285,189   $ 10,021,781  
Interest-bearing bank balances       43,798     47,786  
Federal funds sold and securities purchased under            
  agreements to resell       14,072,118     17,745,404  
Investment securities - available for sale       153,590,665     165,826,683  
Investment securities - held to maturity (market value of            
  $6,394,999 and $6,509,148 at March 31, 2007 and            
  December 31, 2006, respectively)       6,382,691     6,488,796  
Investment securities held for trading       3,390,173     -  
Other investments, at cost       4,185,095     4,207,795  
Loans       288,187,057     275,188,567  
Less, allowance for loan losses       3,342,201     3,214,624  
   Net loans       284,844,856     271,973,943  
Property, furniture and equipment - net       20,758,535     20,960,332  
Bank owned life insurance       9,705,954     9,606,657  
Goodwill       27,761,219     27,761,219  
Intangible assets       2,485,508     2,652,917  
Other assets       10,582,004     10,762,430  
    Total assets     $ 550,087,805   $ 548,055,743  
                          LIABILITIES            
Deposits:            
  Non-interest bearing demand     $ 72,942,011   $ 73,676,415  
  NOW and money market accounts       106,432,276     114,842,382  
  Savings       25,491,918     26,134,834  
  Time deposits less than $100,000       122,658,255     119,082,462  
  Time deposits $100,000 and over       84,658,903     81,205,314  
     Total deposits       412,183,363     414,941,407  
Securities sold under agreements to repurchase       24,975,150     19,472,580  
Federal Home Loan Bank advances       29,645,991     29,757,545  
Junior subordinated debt       15,464,000     15,464,000  
Other borrowed money       118,307     148,886  
Other liabilities       4,706,307     5,063,674  
    Total liabilities       487,093,118     484,848,092  
                      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            
    3,217,954 at March 31, 2007 and 3,264,608 at                
    December 31, 2006       3,217,954     3,264,608  
Additional paid in capital       48,855,322     49,695,346  
Retained earnings       12,003,186     12,033,065  
Accumulated other comprehensive income (loss)       (1,081,775 )   (1,785,368 )
    Total shareholders’ equity       62,994,687     63,207,651  
    Total liabilities and shareholders’ equity     $ 550,087,805   $ 548,055,743  

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FIRST COMMUNITY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME

Three Months ended March 31,
  2007     2006  
  Interest and dividend income:            
    Loans, including fees     $ 5,223,571   $ 4,015,522  
    Taxable securities       1,855,461     1,711,941  
    Non-taxable securities       109,021     57,784  
    Federal funds sold and securities purchased            
      under resale agreements       103,132     141,317  
    Other       7,181     10,453  
         Total interest income       7,298,366     5,937,017  
  Interest expense:            
    Deposits       2,832,947     1,928,292  
    Federal funds sold and securities sold under agreement            
     to repurchase       267,296     127,011  
    Other borrowed money       589,426     554,275  
        Total interest expense       3,689,669     2,609,578  
  Net interest income       3,608,697     3,327,439  
  Provision for loan losses       113,500     119,700  
  Net interest income after provision for loan losses       3,495,197     3,207,739  
  Non-interest income:            
    Deposit service charges       612,535     544,537  
    Mortgage origination fees       104,157     114,343  
    Commissions on sale of non-deposit investment products       77,452     101,184  
    Gain (loss) on sale of securities       4,289     (69,382 )
    Gain on early extinguishment of debt       -     159,416  
    Other       310,357     300,761  
        Total non-interest income       1,108,790     1,150,859  
  Non-interest expense:            
    Salaries and employee benefits       1,831,456     1,694,458  
    Occupancy       282,921     207,694  
    Equipment       311,217     285,163  
    Marketing and public relations       174,230     71,391  
    Amortization of intangibles       167,409     148,685  
    Other       858,431     761,421  
        Total non-interest expense       3,625,664     3,168,812  
  Net income before tax       978,323     1,189,786  
    Income taxes       252,644     353,500  
  Net income     $ 725,679   $ 836,286  
  Basic earnings per common share     $ 0.22   $ 0.29  
  Diluted earnings per common share     $ 0.22   $ 0.28  

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FIRST COMMUNITY CORPORATION
Consolidated Statement of Changes in Shareholders’ Equity and Comprehensive Income (Loss)
Three Months ended March 31, 2007 and March 31, 2006

Accumulated
Additional Other
Shares Common Paid-in Retained Comprehensive
Issued
Stock
Capital
Earnings
Income (loss)
Total
Balance, December 31, 2005       2,848,627   $ 2,848,627   $ 42,352,205   $ 9,240,088   $ (3,674,135 ) $ 50,766,785  
Comprehensive Income:                            
Net income                   836,286           836,286  
Other comprehensive income:                            
Unrealized gain arising during                            
     period net of income tax                            
     expense of ($304,065)                       564,695      
 Less: reclassification adjustment                            
    for loss included in net income,                            
    net of tax benefit of $24,283                       45,098      
   Other comprehensive income                       609,793     609,793  
Comprehensive income                           1,446,079  
Dividends paid ($0.05 per share)                   (142,825 )       (142,825 )
Exercise of stock options       42,629