First Community Corporation · NASDAQ:FCCO
First Community — Merger or Acquisition (August 2013)
13 slides from First Community's merger presentation, Aug 14, 2013
Slide 1: Value Creation Through Strategic Growth
Mike Crapps Chief Executive Officer August 14, 2013 Value Creation Through Strategic Growth Randolph Potter Chief Executive Officer
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements relating to the financial condition, results of operations and business of First Community Corporation and its subsidiary First Community Bank. These forward looking statements involve risks and uncertainties and are ba
Slide 3: Transaction Terms
TRANSACTION TERMS Buyer: First Community Corporation (“FCCO”) Seller: Savannah River Financial Corporation (“SRFC”) Transaction Value: $33.6 million1 Consideration: 60% Cash / 40% Stock Price Per Share: $11.00 Price/Tangible Book: 113% Price Collar: Pre-determined fixed exchange ratio should FCCO st
Slide 4: Contiguous Market Expansion
CONTIGIOUS MARKET EXPANSION Similar cultures & strategies focused on local businesses and professionals Entrance into Central Savannah River Area – Augusta & Aiken Contiguous counties Well-positioned franchise Pro Forma institution: 13 total locations 6 counties 2 MSAs 2 states
Slide 5: Strategic Franchise Expansion
STRATEGIC FRANCHISE EXPANSION FCCO Locations SRFC Locations Source: SNL Financial Augusta, GA-SC MSA Rank Institution State # of Branches Total Deposits ($M) Market Share (%) June ’12 1 Wells Fargo & Co. CA 21 $1,557 20.9% 2 Southeastern Bank Financial Corp. GA 12 1,435 19.3 3 SunTrust Banks Inc. GA
Slide 6: Central Savannah River Area - Highlights
CENTRAL SAVANNAH RIVER AREA- HIGHLIGHTS Diverse economy - strong healthcare, sciences and technology industries 12+ hospitals – economic impact of ~$8 billion and employs 20,000 people Savannah River Site – U.S. Dept of Energy facility – annual budget of $2 billion and over 12,000 employees Robust m
Slide 7: Central Savannah River Area - Highlights (Demographics)
CENTRAL SAVANNAH RIVER AREA- HIGHLIGHTS Population Total population of 572,248 Projected population growth Increase of 5.4% from 2012-2017 Regional income levels Current household income of $41,253 Per capita income of $22,092 More than 14% of all households have income > $100,000 Projected income g
Slide 8: Transaction Rationale
TRANSACTION RATIONALE Strategic franchise expansion into contiguous and similar markets Metro Augusta is a growing and dynamic economic market Entrance into a market historically favorable to community banks Gaining critical mass – step towards reaching $1.0 billion in assets Significant EPS accreti
Slide 9: Financial Impact
FINANCIAL IMPACT Attractive Pro Forma Balance Sheet Total assets of $775 million Total loans of $450 million Total deposits of $635 billion Strong Pro Forma Capital Ratios Leverage ratio ~ 9.25% Tier 1 RBC ratio ~13.75% Total RBC ratio ~14.75% TCE/TA ~7.75% Compelling Financial Returns Earnings accr
Slide 10: Credit Due Diligence
CREDIT DUE DILIGENCE A robust balance sheet analysis to evaluate credit exposure Reviewed $72.8 million (64%) of the total loan portfolio 100% of special mention credits - $5.7 million 100% of substandard credits - $2.1 million Overall loan portfolio is considered strong with accurate risk ratings F
Slide 11: Transaction Summary
TRANSACTION SUMMARY Strategic expansion through contiguous and similar markets Favorable earnings accretion – greater than 18% Continued growth of critical mass and increased economies of scale Similar cultures will benefit customers and shareholders while minimizing integration risk Addition of Sav
Slide 12: Investor Contacts
INVESTOR CONTACTS Michael C. Crapps, Chief Executive Officer mcrapps@firstcommunitysc.com (803) 951-0501 Joseph G. Sawyer, Chief Financial Officer jsawyer@firstcommunitysc.com (803) 951-0508
Slide 13: §) First SAVANNAH
§) First SAVANNAH Community RIVER Corporation BANKING COMPANY Come See the Difference
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