First Community Corporation · NASDAQ:FCCO
First Community — Shareholder Meeting (May 2013)
35 slides from First Community's shareholder meeting presentation, May 22, 2013
Slide 1: 2013 Annual Shareholders Presentation
2013 Annual Shareholders Presentation May 22, 2013 Presented by Mike Crapps President and CEO Come See the Difference
Slide 2: Outline
OUTLINE I. Banking Industry II. 2012 Recap – A Great, Great Year III. Positioned for Tomorrow. Now IV. Summary
Slide 3: Banking Industry
BANKING INDUSTRY
Slide 4: US Bank Failures
. US Bank Failures . 2009 – 140 . 2010 – 157 . 2011 – 92 . 2012 – 51 . 2013 – 13 (as of 5/14/13) . Large and consistent losses . Double digit non-performing asset ratio . Sub 2.0% capital (leverage) ratio . Nine (9) SC bank failures – common characteristics Health of Community Banks BANKING INDUSTRY
Slide 5: Profitable SC Banks
Profitable SC Banks Health of Community Banks BANKING INDUSTRY
Slide 6: Credit Quality - NPAs of Less Than 2.50%
Credit Quality - NPAs of Less Than 2.50% Health of Community Banks BANKING INDUSTRY
Slide 7: Capital - Leverage Ratio Greater Than 8%
Capital - Leverage Ratio Greater Than 8% Health of Community Banks BANKING INDUSTRY
Slide 8: Southeastern States Non-Performing Assets
Southeastern States Non-Performing Assets (Including TDRs) December 31, 2012 Median Health of Community Banks BANKING INDUSTRY
Slide 9: SC Non-Performing Assets Trends
SC Non-Performing Assets Trends (Median, including TDRs) Health of Community Banks BANKING INDUSTRY
Slide 10: SC Non-Performing Assets By Region
Health of Community Banks BANKING INDUSTRY SC Non-Performing Assets By Region
Slide 11: Current Bank Valuations
Current Bank Valuations Source: SNL Financial data as of 4/25/2013 BANKING INDUSTRY
Slide 12: Price-to-Tangible Equity Multiples: Publicly Traded US Banks
Source: SNL Financial data as of 4/25/2013 Price-to-Tangible Equity Multiples: Publicly Traded US Banks BANKING INDUSTRY
Slide 13: Thoughts on the Industry
Thoughts on the Industry . Earnings, Credit Quality and Capital Levels – Stabilized and Improved . Balance Sheet Crisis Shifts to Income Statement Crisis . NIM compression due to continued low rates . Regulatory burdens driving revenue down and overhead up . Efficiency and expense control is crucial
Slide 14: 2012 Recap: A Great, Great Year
2012 RECAP A GREAT, GREAT YEAR
Slide 15: Much To Celebrate: Financial Performance
Much To Celebrate . Financial Performance 2012 RECAP – A GREAT, GREAT YEAR
Slide 16: Financial Performance: Funding Mix Improves
Financial Performance 2012 RECAP – A GREAT, GREAT YEAR . Funding Mix Improves . Pure Deposits Increase . $28.7 million (9.40%) . Positions us to reduce -- . Certificates of Deposits -- $22.5 million . FHLB Borrowings -- $7.6 million . Drives Cost of Funds Down
Slide 17: Financial Performance: Loan Growth
Financial Performance 2012 RECAP – A GREAT, GREAT YEAR . Loan Growth . First time in three years . $59.0 million . $8.1 million increase (2.50%) . Commercial and Retail Production . 26.9% increase over 2011
Slide 18: Financial Performance: Credit Quality
Financial Performance 2012 RECAP – A GREAT, GREAT YEAR . Credit Quality
Slide 19: Financial Performance: Earnings
Financial Performance 2012 RECAP – A GREAT, GREAT YEAR . Earnings . Increase of 24% to $3.3 million ($0.79 per share) . Diversified revenue model demonstrates strength Headwind of margin contraction Overcome by
Slide 20: Financial Performance: Earnings (con't)
Financial Performance 2012 RECAP – A GREAT, GREAT YEAR . Earnings (con’t.) . Non-Interest Income Highlights . Residential Mortgage Line of Business . Financial Planning/Investment Advisory Line of Business
Slide 21: Largest Community Bank in the Midlands
2012 RECAP – A GREAT, GREAT YEAR Much To Celebrate .Largest Community Bank in the Midlands As of June 30, 2012. $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 27.38% 26.57% 13.20% 9.07% 5.40% 4.74% 3.12% 2.28% 1.75% 0.89%
Slide 22: All Regulatory Agreements Terminated
. All Regulatory Agreements Terminated 2012 RECAP – A GREAT, GREAT YEAR Much To Celebrate . Financial benefit estimated at $450,000 . Emotional Lift -- Tremendous
Slide 23: Successful Completion of Common Equity Offering
. Successful Completion of Common Equity Offering 2012 RECAP – A GREAT, GREAT YEAR . Completed $15 million equity offering • Original target $12.5 million • More than 3x oversubscribed • Desired blend of institutional and retail investors • Priced at-the-market • Good after-market support • First su
Slide 24: Cash Dividend
. Cash Dividend 2012 RECAP – A GREAT, GREAT YEAR Much To Celebrate . 44 Consecutive Quarters . In January 2013, increased to $0.20 annually per share . Current Yield – 2.22%
Slide 25: Share Value Appreciation
. Share Value Appreciation 2012 RECAP – A GREAT, GREAT YEAR Much To Celebrate . 2012 Total Return (includes cash dividend) – 38.1% . Price increased to $8.39 from $6.19
Slide 26: One Year Stock Price Performance vs. Relevant Indices
One Year Stock Price Performance vs. Relevant Indices 2012 RECAP – A GREAT, GREAT YEAR
Slide 27: Much To Celebrate: Summary of 2012 Accomplishments
. Financial Performance . Largest Community Bank in the Midlands . All Regulatory Agreements Terminated . Capital . Cash Dividend Increase . Share Value Appreciation 2012 RECAP – A GREAT, GREAT YEAR Much To Celebrate . Successful Equity Offering . TARP-CPP Exit Completed . Repayment of Sub-debt
Slide 28: Positioned for Tomorrow. Now
POSITIONED FOR TOMORROW. NOW
Slide 29: Positioned for Tomorrow. Now
POSITIONED FOR TOMORROW. NOW 1 Building out current lines of business to reach their full potential 2 Identifying opportunities in the Midlands for new banking offices 3 A disciplined approach to expanding our footprint to other South Carolina communities that are a good match for our brand of commu
Slide 30: Summary
SUMMARY
Slide 31: Summary
SUMMARY . High quality company focused on its vision . Diverse revenue and earnings model adds strength . Well positioned for future growth in all three lines of business: . Commercial and Retail Banking . Residential Mortgage Banking . Financial Planning / Investment Advisory Services . Cash divide
Slide 32: Vision
VISION As the provider of choice of financial solutions to local businesses and professionals in the markets we serve, we optimize the long-term return to our shareholders, while providing a safe and sound investment.
Slide 33: Safe Harbor Statement
SAFE HARBOR STATEMENT – INCLUDING ALL DOCUMENTS INCORPORATED HEREIN BY REFERENCE, CONTAINS FORWARD-LOOKING STATEMENTS. ADDITIONAL WRITTEN OR ORAL FORWARD-LOOKING STATEMENTS MAY BE MADE BY THE COMPANY FROM TIME TO TIME IN FILINGS WITH THE SECURITIES & EXCHANGE COMMISSION OR OTHERWISE. THE WORDS "BELI
Slide 34: Vision
VISION As the provider of choice of financial solutions to local businesses and professionals in the markets we serve, we optimize the long-term return to our shareholders, while providing a safe and sound investment.
Slide 35: First Community Corporation
, First . Community Corporation Come See the Difference