First Community Corporation · NASDAQ:FCCO
First Community — KBW (Keefe, Bruyette & Woods) presentation, July 2025
65 slides from First Community's conference presentation, Jul 28, 2025
Slide 1: First Community Corporation
SD First Community Corporation Big) KEEFE, BRUYETTE & WOODS A Stifel Company bie July 2025 SINCE 1995
Slide 2: Outline
OUTLINE 2 I. Overview 3 II. 2Q25 Highlights / Topics of Interest 9 » Highlights 10 » Earning Assets 12 » Funding 17 » Net Interest Margin (NIM) 20 » Risk Management 25 » Capital 30 » Non - Interest Income Highlights 34 » Revenue 39 » Non - Interest Expense 42 » Net Income 45 III. Signature Bank of G
Slide 3: Overview
OVERVIEW Impacting Lives for Success and Significance
Slide 4: Our Purpose and Cause
OUR PURPOSE AND CAUSE Everything we do has an impact. Providing the best products and services possible is what we do; however, that’s not why we do it. We know that everything we do has an impact, and we believe it’s our responsibility to make sure it’s a positive one. Employees Impacting lives for
Slide 5: Our Identity
OUR IDENTITY Purpose & Cause Impacting lives for success and significance Mission To provide best in class financial solutions to local businesses, professionals, and organizations in our markets as well as optimize the long-term return to our shareholders, while providing a safe, sound investment.
Slide 6: Overview Highlights
OVERVIEW Highlights 6 » Began in 1995 » Focused on Organic Growth, Augmented with Opportunistic Acquisitions ▪ 2004 – Newberry Federal ▪ 2006 – Bank of Camden ▪ 2008 – EAH Financial Planning Practice ▪ 2011 – Palmetto South Mortgage Corp. ▪ 2014 – Savannah River Financial Corp. ▪ 2017 – Cornerstone
Slide 7: Geographically Diverse and Growing Markets
» Columbia (Midlands of SC) ▪ State Capitol ▪ University of SC ▪ Fort Jackson ▪ Quality Public Schools ▪ Lake Murray ▪ Riverbanks Zoo » Greenville (Upstate of SC) ▪ Great Pure Business Market ▪ Attractive to Millennials » Augusta (CSRA) ▪ Cybersecurity x Fort Gordon x Private Sector ▪ Augusta Univer
Slide 8: Three Lines of Business
Three Lines of Business OVERVIEW 8
Slide 9: 2Q25 Highlights / Topics of Interest
2Q25 HIGHLIGHTS / TOPICS OF INTEREST Impacting Lives for Success and Significance
Slide 10: 2Q25 Highlights
2Q25 HIGHLIGHTS Impacting Lives for Success and Significance
Slide 11: 2Q25 Highlights
2Q25 HIGHLIGHTS » Record earnings » NIM and NII expansion » Record residential mortgage production » Record investment advisory AUM exceeding $1 billion » 2Q25 Non - recurring items offset ($ in thousands) Gain on sale of OREO $127 OREO write - down $100 Provision credit 237 Merger expenses 234 $364
Slide 12: Earning Assets
EARNING ASSETS Impacting Lives for Success and Significance
Slide 13: Earning Assets Composition
Yield 4.43% 5.32% 5.65% 5.77% Loan Portfolio 2025 YTD Annual Growth = 6.5% CRE as a % of RBC = 305.6% (4 th Quarter for 2022 - 2024 and 2 nd Quarter for 2025) 13 EARNING ASSETS Composition 6/30/25 Millions
Slide 14: Loan Portfolio Growth
» 2Q25 $8.1 million 2.6% annualized growth rate » YTD 2025 $39.5 million 6.5% annualized growth rate Notes: » Percent of Growth : YTD25 ▪ CRE 57.5% ▪ C&I 5.8% ▪ Residential Mortgage 20.9% ▪ Other 15.8% » Interest Rate Sensitivity (6/30/25) : ▪ Principal cash flows, excluding prepayment estimates • 0
Slide 15: Investment Portfolio
Investment Portfolio Yield 2.78% 3.59% 3.40% 3.43% AOCI/(AOCL) 1 ($32.4) ($28.2) ($25.5) ($21.9) (4 th Quarter for 2022 - 2024, and 2 nd Quarter for 2025) Average Life: 5.4 years Effective Duration: 3.3 $564.8 $506.2 EARNING ASSETS Millions $491.7 15 1 AOCI is accumulated other comprehensive income
Slide 16: Investment Portfolio Notes
Notes: Mix (2Q25) : » Floating 30.0% » Fixed 70.0% Principal Cash Flows : » 07/01/25 – 12/31/25 $40.4 million » FY2026 $50.5 million » 2Q25 - The company purchased four fixed rate agency mortgage - backed security (MBS) bonds totaling $20.0 million, with a purchase yield of 4.78% and entered into a
Slide 17: Funding
FUNDING Impacting Lives for Success and Significance
Slide 18: High Quality Deposit Franchise
Total Deposit Cost 0.25% 1.69% 1.91% 1.82% Non - Interest Bearing 33% 29% 28% 27% Millions $1,454.1 $1,573.9 $1,779.0 (4 th Quarter for 2022 - 2024 & 2 nd Quarter for 2025) 18 High Quality Deposit Franchise $1,857.7 FUNDING 12/31/2022 12/31/2023 12/31/2024 06/30/2025
Slide 19: Sources and Uses
19 YTD 2025 (6.30.25) » Sources of funds (Millions) Customer Deposits $ 78.1 Customer Cash Management 0.5 Capital 11.0 Total $ 89.6 » Uses of funds Loans (includes held held - for - sale) $ 40.8 Short - Term Investments & CDs 27.9 Investment Portfolio 15.6 Other 5.3 Total $ 89.6 Summary: We have pri
Slide 20: Net Interest Margin
NET INTEREST MARGIN Impacting Lives for Success and Significance
Slide 21: Net Interest Margin (NIM)
NET INTEREST MARGIN (NIM) Loan Portfolio Yield 5.80% 5.77% 5.73% eae 5.70% 5.60% 5.50% art 5.40% 5.30% 5.20% 1024 2Q24 3Q24 4024 1025 2Q25 New/Renewed Loans Weighted Average Rate 8.00% 7.81% 7.56% 7.57% 7.50% 7.00% 6.50% 6.00% 5.50% 5.00% 1024 2Q24 3Q24 4Q24 1025 2Q25
Slide 22: Net Interest Margin (NIM)
NET INTEREST MARGIN (NIM) ies Portfolio Yield 3.70% 3.66% 3.66% 3.65% 3.60% 3.55% 3.50% 3.45% 3.40% 3.35% 3.30% 3.25% 1024 2024 = 3Q24. 4024 1025 2025 Average Earnings Assets (AEA) Yield 5.15% 5.10% 5.10% 5.05% 5.00% 4.95% 4.20% 485% 4.80% 1024 2024 3Q24 4Q24 1025 2925
Slide 23: Net Interest Margin (NIM)
2.05% 2.00% 1.95% 1.90% 1.85% 1.80% 1.75% 1.70% 1024 NET INTEREST MARGIN (NIM) Cost of Deposits 2.03% 2Q24 3024 4Q24 3.30% 3.20% 3.10% 3.00% 2.90% 2.80% 2.70% 1025 1024 2025 2.25% 2.20% 215% 2.10% 2.05% 2.00% 1.95% 1.90% 1.85% 1.80% 1.75% 1Q24 Net Interest Margin FTE 2024 3024 4Q24 1025 Cost of Fund
Slide 24: Net Interest Margin (NIM) Notes
24 Notes: » NIM Inflection began 2Q24 » Five consecutive quarters of NIM expansion » Effective May 5, 2023, entered into a pay - fixed /receive floating interest rate swap designated as a fair value hedge for fixed rate loans • Initial notional amount: $150.0 million • Current notional amount: $149.
Slide 25: Risk Management
RISK MANAGEMENT Impacting Lives for Success and Significance
Slide 26: Credit Quality
26 Credit Quality RISK MANAGEMENT NPA / Assets Net Charge - Offs (Recoveries)
Slide 27: Credit Quality
27 Provision for (Release of) Credit Losses (000s omitted) Credit Quality RISK MANAGEMENT Allowance for Credit Losses as a Percentage of Total Loans
Slide 28: Credit Quality Notes
2Q25 Notes: » Gain on Sale of OREO $127,000 » Write - down of OREO $100,000 » The allowance for credit losses (ACL) on loans as a percentage of total loans declined to 1.06% at June 30, 2025, from 1.09% at March 31, 2025, due to a three - basis points reduction in our ACL qualitative factors primari
Slide 29: Risk Management
RISK MANAGEMENT Formal ERM Program including Measures, like Internal Risk Scorecard, External PT Score and Board Risk Appetite Audit Program Cybersecurity Program Enterprise Risk Management Framework is key to balance of Risk and Reward... Compliance Program Fraud Prevention Program
Slide 30: Capital
CAPITAL Impacting Lives for Success and Significance
Slide 31: Capital Ratios
31 Leverage Ratio (Bank) Total Capital Ratio (Bank) CAPITAL *On 5/9/25, announced a plan to utilize up to $7.5 million of capital to repurchase shares of FCCO’s common stock (5.0% of total shareholders’ equity at the time of the announcement).
Slide 32: Tangible Book Value and Tangible Common Equity
32 Tangible Book Value CAPITAL Tangible Common Equity
Slide 33: Dividend
Dividend 33 CAPITAL 1 The Board of Directors approved a cash dividend increase of $0.16 per share, payable August 19, 2025, to shareholders of reco rd as of August 5, 2025. 1
Slide 34: Non-Interest Income Highlights
NON - INTEREST INCOME HIGHLIGHTS Impacting Lives for Success and Significance
Slide 35: Financial Planning / Investment Advisory AUM
Financial Planning / Investment Advisory Services AUM (millions) 35 NON - INTEREST INCOME HIGHLIGHTS
Slide 36: Financial Planning / Investment Advisory Revenue and Pre-Tax Income
Financial Planning / Investment Advisory Services Revenue and Pre - Tax Income (thousands) 36 Pre - tax Profit Margin 33.9% 31.0% 3 4.8% 36.2% NON - INTEREST INCOME HIGHLIGHTS
Slide 37: Residential Mortgage Banking Production
37 Residential Mortgage Banking Production (millions) NON - INTEREST INCOME HIGHLIGHTS $107.2 $135.7 $165.6 $106.7
Slide 38: Residential Mortgage Banking Revenue and Pre-Tax Income
Pre - tax Profit Margin 3.6% 34.3% 61.3% 62.2% Residential Mortgage Banking Revenue and Pre - Tax Income (000’s omitted) 38 $5,939.2 1 $3,763.8 1 $5,201.3 1 Note: Pre - tax net income does not include fund transfer pricing or ACL allocations. 1 Includes mortgage late charges and other mortgage reven
Slide 39: Revenue
REVENUE Impacting Lives for Success and Significance
Slide 40: Total Revenue: Strength in Diversity of Revenue
40 (Millions) $59.5 $60.6 $66.3 Total Revenue 1 Strength in Diversity of Revenue REVENUE 1 Adjusted for Securities Gains/Losses and early extinguishment of debt. 1 $37.9
Slide 41: Total Revenue: Strength in Diversity of Revenue
41 (Thousands) $17,694 $16,982 $19,530 Total Revenue 1 Strength in Diversity of Revenue $18,372 REVENUE $16,336 1 1 Adjusted for Securities Gains/Losses and early extinguishment of debt.
Slide 42: Non-Interest Expense
NON - INTEREST EXPENSE Impacting Lives for Success and Significance
Slide 43: Non-Interest Expense
NON - INTEREST EXPENSE 43 Non - interest Expense (Millions) $25.8 1 $41.3 $43.1 1 Includes $0.2 in merger expenses. $47.5
Slide 44: Non-Interest Expense
NON - INTEREST EXPENSE 44 Non - interest Expense (Millions) $11.8 $13.1 1 $12.0 $11.8 $12.8 1 Includes $0.2 in merger expenses.
Slide 45: Net Income
NET INCOME Impacting Lives for Success and Significance
Slide 46: Core Net Income / Core EPS / Pre-Tax Pre-Provision Earnings
1 Core net income and EPS exclude gains (losses) on sale of securities and bank premises, loss on disposition of assets related to the downtown Augusta branch closure, loss on early extinguishment of debt, gains on insurance proceeds, non - recurring BOLI income, and merger expenses. S ee non - GAAP
Slide 47: Forward-Looking Statements
FORWARD - LOOKING STATEMENTS 47 SAFE HARBOR STATEMENT – In this presentation, unless the context suggests otherwise, references to “First Community,” the “Company” or “FCCO” refer to First Community Corporation and references to “we,” “us,” and “our” mean the combined business of the Company, First
Slide 48: Additional Information
ADDITIONAL INFORMATION 48 ADDITIONAL INFORMATION ABOUT THE ACQUISITION AND WHERE TO FIND IT FCCO intends to file with the SEC a registration statement on Form S - 4 containing a joint proxy statement of FCCO and SGBG and a prospectus of FCCO, and FCCO will file other documents with respect to the pr
Slide 49: Non-GAAP Financial Measures
NON - GAAP FINANCIAL MEASURES The Bank Behind Your Business 49 NON - GAAP FINANCIAL MEASURES – This presentation contains certain non - GAAP financial measures that are not in accordance with US generally accepted accounting principles (GAAP) . We use certain non - GAAP financial measures to provide
Slide 50: Non-GAAP Reconciliation
NON - GAAP RECONCILIATION 50 The tables below provide a reconciliation of non - GAAP measures to GAAP for each of the periods indicated: 1 Excludes gains (losses) on sale of securities and bank premises, loss on disposition of assets related to the downtown Augusta branch closure, loss on early exti
Slide 51: Signature Bank of Georgia Acquisition
SIGNATURE BANK OF GEORGIA ACQUISITION » Accomplishes two Strategic Initiatives ▪ Additional growth market ▪ Addition of SBA/GGL lines of business
Slide 52: Acquisition of Signature Bank of Georgia
) First Community Corporation Acquisition of fw signature bank OF GEORGIA July 14, 2025
Slide 53: Acquisition Highlights
Establishing a presence in the dynamic and high - growth Atlanta - Sandy Springs - Roswell, Georgia MSA Attractive transaction terms drive compelling pro forma financial results Proven expertise in SBA lending generating significant fee income Manageable TBV dilution (2.2 years earnback ) coupled wi
Slide 54: Overview of Signature Bank of Georgia
OVERVIEW OF SIGNATURE BANK OF GEORGIA 54 (1) Financial data as of the most recent quarter ended March 31, 2025 Source: S&P Capital IQ Pro Geographic Footprint Franchise Overview Financial Highlights (1) ■ Signature Bank of Georgia (OTCPK: SGBG) was established in 2005 and is headquartered in Sandy S
Slide 55: Atlanta Market Overview
4.39% 4.07% 4.79% Atlanta MSA Georgia Legacy FCCO 2025 - 2030 Projected Population Growth ATLANTA MARKET OVERVIEW 55 Source: S&P Capital IQ Pro; U.S. Census Bureau; U.S. Bureau of Economic Analysis; Georgia Department of Transportation Market Highlights Expanding into the Atlanta MSA ■ High - Growth
Slide 56: Pro Forma Franchise Overview
Expansion into Atlanta MSA x Scalable SBA lending vertical x Attractive financial impact x Stronger, more diversified franchise x PRO FORMA FRANCHISE OVERVIEW 56 (1) For illustrative purposes, assumes transaction closes December 31, 2025, cost savings are 100% phased - in, and excludes one - t ime t
Slide 57: Pro Forma Franchise Overview, Cont'd
PRO FORMA FRANCHISE OVERVIEW, CONT’D 57 (1) As of December 31, 2024 (2) Net of servicing asset amortization Source: S&P Capital IQ Pro; Company Documents Ability to scale existing lines of business, with strong foundations and momentum, into new markets Government Guaranteed Lending Financial Planni
Slide 58: Transaction Summary
TRANSACTION SUMMARY 58 (1) Based on FCCO’s closing price of $24.84 on July 11, 2025, and assuming 2,585,764 SGBG common shares outstanding and 118,5 00 options with a weighted average strike price of $12.20. Assumes 10,033 SGBG options that expire in Q4 ‘2025 are exercised prior to closing. (2) Refl
Slide 59: Key Pro Forma Financial Assumptions
KEY PRO FORMA FINANCIAL ASSUMPTIONS 59 ■ Pre - tax merger costs of $7.6 million ■ Cost savings equal to 30.9% of SGBG’s non - interest expense base anticipated ■ No branch or office closings are planned with this acquisition One - Time Merger Expenses and Cost Savings ■ Total gross credit mark of $2
Slide 60: Strategically Compelling Acquisition
STRATEGICALLY COMPELLING ACQUISITION 60 (1) Estimated pro forma capital ratios at close; Based on FCCO’s closing price of $24.84 on July 11, 2025 (2) Pro forma impact is presented for illustrative purposes only and is subject to change based on final purchase accounting ent ries ■ Gaining foothold i
Slide 61: Comprehensive Due Diligence
COMPREHENSIVE DUE DILIGENCE 61 Approach Summary ■ Joint management - led diligence effort supported by legal, accounting, and consulting advisors ■ Emphasis on cultural alignment and operational compatibility between the two institutions ■ Granular credit and operational analysis to support confiden
Slide 62: Appendix
Impacting Lives for Success and Significance APPENDIX
Slide 63: Attractive Pro Forma Results
2026E ROAA vs. Public Southeast Banks $2.0B to $10.0B in Total Assets Enhanced Pro Forma Earnings 2026E ROATCE vs. Public Southeast Banks $2.0B to $10.0B in Total Assets Improved Capital Generation 2026E Efficiency Ratio vs. Public Southeast Banks $2.0B to $10.0B in Total Assets Greater Operational
Slide 64: Pro Forma Loan & Deposit Composition
1 - 4 Family 24.0% C&D 11.6% Multifamily 2.3% NOO - CRE 30.8% OO - CRE 22.4% C&I 5.1% Consumer 1.6% Other 2.1% PRO FORMA LOAN & DEPOSIT COMPOSITION 64 Note: Financial data as of March 31, 2025; Loan and deposit compositions reflect Call Report data (1) Pro Forma compositions exclude purchase account
Slide 65: Our Purpose, Cause, and Identity
OUR PURPOSE, CAUSE, AND IDENTITY 65 Providing the best products and services possible is what we do; however, that’s not why we do it. We know that everything we do has an impact, and we believe it’s our responsibility to make sure it’s a positive one. Everything we do has an impact Shareholders Com
First Community — KBW (Keefe, Bruyette & Woods) presentation, July 2025 on 6ix