Slide 1: The Bank Behind Your Business
The Bank Behind Your Business September 2024
Slide 2: Outline
OUTLINE 2 I. Overview 3 II. 2Q24 Highlights / Topics of Interest 9 » Earning Assets 10 » Funding 15 » Net Interest Margin (NIM) 19 » Risk Management 24 » Capital 29 » Non - Interest Income Highlights 33 » Revenue 38 » Non - Interest Expense 41 » Net Income 44 Impacting Lives for Success and Signific
Slide 3: Impacting Lives for Success and Significance
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. S Employees ‘ Impacting lives
Slide 5: Our Identity
OUR IDENTITY 5 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
OVERVIEW Highlights > Began in 1995 » Focused on Organic Growth, Augmented with Opportunistic Acquisitions = 2004 - Newberry Federal = 2006 - Bank of Camden eats = 2008 - EAH Financial Planning Practice = 2011 - Palmetto South Mortgage Corp. maf = 2014 - Savannah River Financial Corp. = 2017 - Corne
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: Overview: Three Lines of Business
OVERVIEW Three Lines of Business Commercial & Retail Banking )) First Online Banking ACH / Wire Transfer Service Community Remote Deposit Capture Bank Positive Pay, Loans & Lines of Credit Construction / Permanent Commercial Real Estate Equipment Financing \4% Residential Financial Planning & Mortga
Slide 9: 2Q24 Highlights / Topics of Interest
2Q24 HIGHLIGHTS / TOPICS OF INTEREST Impacting Lives for Success and Significance
Slide 10: Impacting Lives for Success and Significance
Impacting Lives for Success and Significance
Slide 11: Earning Assets: Loan Portfolio
EARNING ASSETS Loan Portfolio $1,275.00 > ‘Loans ex PPPReleted_" PPPRelted $4,475.00 - $1,134.0 i Composition oe 6/30/24 $1,075.00 - 8 $975.00 Muti-Family 23% $875.00 $775.00 - ‘ Const & Dev $675.00 © 12/31/2020 1213112021 12/31/2022 12/31/2023 06/30/2024 Yield 4.36% 4.29% 4.43% 5.32% 5.60% (4 Quart
Slide 12: Loan Portfolio Growth
Notes: 12 1 Excluding prepayments, 07/01/24 – 12.31/24 = $89.4 million and 2025 = $148.0 million. Loan Portfolio Growth EARNING ASSETS
Slide 13: Earning Assets: Investment Portfolio
Investment Portfolio Yield 1.98% 1.56% 2.78% 3.59% 3.66% AOCI/(AOCL) 1 $11.3 $3.3 ($32.4) ($28.2) ($27.3) (4 th Quarter for 2020 - 2023, and 2 nd Quarter for 2024) Average Life: 5.6 years Effective Duration: 3.8 Composition 6/30/24 $361.9 $564.8 $506.2 EARNING ASSETS Millions $488.6 13 $566.6 1 AOCI
Slide 14: Investment Portfolio Notes
Notes: 14 Investment Portfolio EARNING ASSETS
Slide 15: Impacting Lives for Success and Significance
Impacting Lives for Success and Significance
Slide 16: Funding: High Quality Deposit Franchise
Total Deposit Cost 0.20% 0.11% 0.25% 1.69% 1.98% Non - Interest Bearing 32% 33% 33% 29% 29% Millions $1,230.3 $1,415.5 $1,454.1 $1,573.9 (4 th Quarter for 2020 - 2023 & 2 nd Quarter for 2024) 16 High Quality Deposit Franchise $1,663.8 FUNDING 12/31/2020 12/31/2021 12/31/2022 12/31/2023 06/30/2 024
Slide 17: Funding: High Quality Deposit Franchise Notes
2Q24 Notes: 17 High Quality Deposit Franchise FUNDING 1 Trough to peak. 2 Subject to collateral requirements.
Slide 18: Funding: Sources and Uses
18 2Q24 » Sources of funds (Millions) Customer Deposits $ 44.1 Investment Portfolio 6.5 Short - Term (overnight) Investments 36.6 Capital 2.7 Other 1.6 Total $ 91.5 » Uses of funds Customer Cash Management $ 22.5 Brokered CDs 17.6 FHLB Borrowings 10.0 Loans (includes held held - for - sale) 36.9 Cas
Slide 19: Impacting Lives for Success and Significance
Impacting Lives for Success and Significance
Slide 20: Net Interest Margin: Loan Portfolio Yield
NET INTEREST MARGIN (NIM) Loan Portfolio Yield 5.14ye 5-325 SARS 19% _— 443% 4.16% Lis 2Q22 3Q22 4Q22 1023 2023 3Q23 4Q23 5.60% 1024 2Q24 8.30% 7.80% 7.30% 6.80% 6.30% 5.80% 5.30% 4.80% 4.30% 3.80% New/Renewed Loans Weighted Average Rate 2Q22 3022 4Q22 1Q23 2Q23 3Q23 4Q23 7.81% 7.56% 1Q24 2024 20
Slide 21: Net Interest Margin: Securities and Earning Assets Yield
4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 1.475 2Q22 3Q22 NET INTEREST MARGIN (NIM) Securities Portfolio Yield 3.59% 3.66% 3.665% 3.18% _ 327% 4Q22 1023 2023 3023 4023 1024 2Q24 5.30% 4.80% 4.30% 3.80% 3.30% 2.80% Average Earnings Assets (AEA) Yield 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24
Slide 22: Net Interest Margin: Cost of Funds and Deposits
2.50% 2.00% 1.50% 1.00% 0.50% 0.00% NET INTEREST MARGIN (NIM) Cost of Funds Cost of Deposits 2.50% 1.98% 2.00% 1.50% 1.00% 0.25: Ck 0.09% — 0.09% 0.00% 2022 3Q22 4022 1023 2023 3023 4023 1024 2024 2022 3022 4Q22 1023 3.50% 3.40% 3.30% 3.20% 3.10% 3.00% 2.90% 2.80% 2.70% Net Interest Margin FTE 3.42%
Slide 23: Net Interest Margin Notes
23 Notes: NET INTEREST MARGIN (NIM)
Slide 24: Impacting Lives for Success and Significance
Impacting Lives for Success and Significance
Slide 25: Risk Management: Credit Quality
25 Credit Quality RISK MANAGEMENT NPA / Assets Net Charge - Offs
Slide 26: Provision for Credit Losses
26 Provision for (Release of) Credit Losses (000s omitted) Credit Quality RISK MANAGEMENT
Slide 27: Credit Quality Notes
2Q24 Notes: » Key Loan Portfolio Sectors 27 • There are only four loans secured by office buildings in excess of 50,000 square feet of rentable space. These four represent $10.6 million in loans outstanding and have a 34% weighted average loan - to - value. Credit Quality RISK MANAGEMENT
Slide 28: Risk Management: Enterprise Risk Management Framework
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 BSA Program
Slide 29: Impacting Lives for Success and Significance
Impacting Lives for Success and Significance
Slide 30: Capital: Leverage and Total Capital Ratios
30 Leverage Ratio (Bank) Total Capital Ratio (Bank) CAPITAL *On 5/14/24, announced a plan to utilize up to $7.1 million of capital to repurchase shares of FCCO’s common stock (5.3% of total shareholders’ equity as of 3/31/24).
Slide 31: Capital: Tangible Common Equity and Book Value
31 Tangible Common Equity Tangible Book Value CAPITAL
Slide 32: Capital: Dividend
Dividend 32 CAPITAL On 7/17/24, a nnounced an increase in the cash dividend to $0.15 per common share payable 8/13/24 to shareholders of record as of 7/30/24.
Slide 33: Impacting Lives for Success and Significance
Impacting Lives for Success and Significance
Slide 34: Financial Planning / Investment Advisory Services
Financial Planning / Investment Advisory Services 34 NON - INTEREST INCOME HIGHLIGHTS
Slide 35: Financial Planning / Investment Advisory Services Profit Margin
Financial Planning / Investment Advisory Services 35 Pre - tax Profit Margin 29.7% 30.5% 33.9% 31.0% 32.4% NON - INTEREST INCOME HIGHLIGHTS
Slide 36: Residential Mortgage Banking Production
36 Residential Mortgage Banking Production (millions) NON - INTEREST INCOME HIGHLIGHTS $85.6 $107.2 $135.7
Slide 37: Mortgage Banking Pre-tax Profit Margin
Pre - tax Profit Margin 31.6% 11.9% 3.6% 34.3% 57.7% 37 $7,294.7 $ 5,327.8 $4,194.3 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 revenue. NON - INTEREST INCOME HIGHLIGHTS
Slide 38: Impacting Lives for Success and Significance
Impacting Lives for Success and Significance
Slide 39: Revenue: Strength in Diversity of Revenue
39 (Millions) $53.1 $56.2 $60.6 $59.5 Total Revenue 1, 2 Strength in Diversity of Revenue REVENUE 1 Adjusted for PPP deferred fees. 2 Adjusted for Securities Gains/Losses. 2 1 $31.6
Slide 40: Revenue: Non-Interest Income
40 (Thousands) $15,188 $16,336 $15,226 Total Revenue 1 Strength in Diversity of Revenue 1 Adjusted for Securities Gains/Losses. 1 $15,216 REVENUE $15,261
Slide 41: Impacting Lives for Success and Significance
Impacting Lives for Success and Significance
Slide 42: Non-Interest Expense
NON-INTEREST EXPENSE $43.4 _ 488 ears $39.2 @ $40.5 2 5 $35.5 g $30.5 $23.6 & $25.5 Ww : $20.5 $24.5 : $15.5 5 $10.5 ra $5.5 $0.5 2020 2021 2022 2023 1H24 Not m Salary & Benefits Marketing &PR | Other lotes: 2022 Opened new office - Rock Hill. 42
Slide 43: Non-Interest Expense by Quarter
NON-INTEREST EXPENSE $11.8 $11.8 $10.8 $11.3 $10.7 g $12.0 = $10.0 ES 3 $8.0 9 $73 8 $6.0 a ‘ 3 o $4.0 £ g $2.0 = $0.0 2Q23 3Q23 4Q23 1Q24 2Q24 mSalary & Benefits Marketing &PR = Other NOTE: Closed banking office at 771 Broad Street in downtown Augusta, GA, as of June 27, 2024. Cost savings are esti
Slide 44: Impacting Lives for Success and Significance
Impacting Lives for Success and Significance
Slide 45: Net Income: Core Net Income, EPS and Pre-Tax Pre-Provision Earnings
1 Core net income and EPS exclude gains (losses) on sale of securities and bank premises, write - downs on bank premises held - for - sa le, non - recurring BOLI income, gains on insurance proceeds, and collection of summary judgements on two loans charged off at an FCCO acquired bank. S ee non - GA
Slide 46: Forward-Looking Statements
FORWARD - LOOKING STATEMENTS 46
Slide 47: Non-GAAP Financial Measures
NON - GAAP FINANCIAL MEASURES The Bank Behind Your Business 47 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 48: Non-GAAP Reconciliation
NON - GAAP RECONCILIATION 48 The tables below provide a reconciliation of non - GAAP measures to GAAP for each of the periods indicated:
Slide 49: Non-GAAP Reconciliation
NON - GAAP RECONCILIATION 49 1 Excludes gains (losses) on sale of securities and bank premises, write - downs on bank premises held - for - sale, non - recurring BOLI income, gains on insurance proceeds, and collection of summary judgements on two loans charged off at an FCCO acquired bank. The tabl