First Community Corporation · NASDAQ:FCCO
First Community — Investor Presentation (May 2021)
37 slides from First Community's investor presentation, May 3, 2021
Slide 1: The Bank Behind Your Business
The Bank Behind Your Business May 5 - 6, 2021
Slide 2: Outline
OUTLINE 2 I. Overview II. Foundational Franchise Value III. Performance IV. What’s Ahead Impacting Lives for Success and Significance
Slide 3: Overview
OVERVIEW Impacting Lives for Success and Significance
Slide 4: Overview: Our Identity, Purpose and Cause
OVERVIEW OUR IDENTITY 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 its our responsibilty to make sure it's a positive one. Employees
Slide 5: Overview Highlights
» Began in 1995 – Celebrated 25 th Anniversary » Focused on Organic Growth, Augmented with Opportunistic Acquisitions x 2004 – Newberry Federal x 2006 – Bank of Camden x 2008 – EAH Financial Planning Practice x 2011 – Palmetto South Mortgage Corp. x 2014 – Savannah River Financial Corp. x 2017 – Cor
Slide 6: Three Geographically Diverse Markets
» Columbia (Midlands of SC) ▪ State Capitol ▪ University of SC ▪ Fort Jackson ▪ Quality Public Schools ▪ Lake Murray » Greenville (Upstate of SC) ▪ Great Pure Business Market ▪ Attractive to Millennials » Augusta (CSRA) ▪ Cybersecurity x Fort Gordon x Private Sector ▪ Augusta University ▪ Excellent
Slide 7: Three Lines of Business
7 Three Lines of Business OVERVIEW
Slide 8: Foundational Franchise Value
FOUNDATIONAL FRANCHISE VALUE Impacting Lives for Success and Significance
Slide 9: Foundational Franchise Value
FOUNDATIONAL FRANCHISE VALUE Great Deposits Excellent Asset Quality Strong Capital 9 Risk Management Technology
Slide 10: Pure Deposit Growth
Total Deposit Cost 0.39% 0.47% 0.20% 0.17% Pure Deposit Growth FOUNDATIONAL FRANCHISE VALUE Millions 10 12/31/2018 12/31/2019 12/31/2020 3/31/2021 $953.5 $1,021.5 $1,230.3 $1,331.8 Excellent Deposit Franchise • 90% Pure (Non - CD) Deposits • 33% (Non - Interest Bearing DDA Balances) • Largest Commun
Slide 11: Credit Quality
Credit Quality FOUNDATIONAL FRANCHISE VALUE 11 NPA / Assets 15.8% 27.2% 23.0% 3.5% 2.0% 1.1% 2018 2019 2020 1Q2021 1 Excludes loans held for sale and PPP related loans. Loan Deferrals 1 Net Loan Charge - Offs
Slide 12: Industry Segments Most Impacted by Pandemic
Credit Quality FOUNDATIONAL FRANCHISE VALUE Industry Segments Most Impacted by Pandemic 12 3/31/2021 Industry Segments (Dollars in millions) Hotels $ 33.2 $ 2.4 Restaurants $ 22.2 $ 0.7 Assisted Living $ 8.8 $ 1.5 Retail $ 82.4 $ 0.7 Outstanding % of Loan Avg. Loan Avg. Loan to Loan Balance Portfoli
Slide 13: Allowance for Loan Losses to Loans
Allowance for Loan Losses to Loans FOUNDATIONAL FRANCHISE VALUE Credit Quality 13 Loan Loss Provision Expense (000s omitted) 1 This compares to $1,075 in 1Q20.
Slide 14: Capital Ratios
FOUNDATIONAL FRANCHISE VALUE Capital Ratios 14 *On 4/12/21, announced a share repurchase authorization of 375,000 shares (5% of the outstanding shares) Leverage Ratio (Bank) Tangible Common Equity Total Capital Ratio (Bank)
Slide 15: Risk Management
Compliance Cybersecurity / Fraud Audit Enterprise Risk Management (ERM) - Internal PT Risk Report - External Risk / Reward Optimization Risk Management 15 FOUNDATIONAL FRANCHISE VALUE
Slide 16: Technology
Technology » Customer Experience ▪ Significant Focus on Digital Customer Experience ▪ Products and Features like Zelle and Debit Card “Automated Lock” keep FCB current ▪ Current Core Provider permits FCB to track along and, in some cases, “outpace” local competitor banks » Improved “Rapid Deployment
Slide 17: Technology
17 FOUNDATIONAL FRANCHISE VALUE Technology
Slide 18: Technology
18 FOUNDATIONAL FRANCHISE VALUE Technology
Slide 19: Performance: The Local Bank for Local Business
PERFORMANCE The Local Bank for Local Business
Slide 20: COVID-19 Pandemic
» Health / Safety of Employees » Working Remotely » Laptop Mobilization » Support Plans » Banking Office Plans » Accelerated Mobile / Digital Adoption » Credit Portfolio Impact » Putting Families First Act » Mask Ordinances » Marketing Plan Adjustments » Capital Stress Test PERFORMANCE COVID - 19 Pa
Slide 21: Paycheck Protection Program
PERFORMANCE Paycheck Protection Program 21 ($ in Thousands)
Slide 22: Loan Portfolio
PERFORMANCE LTM Growth = 7.3% 1 1 Excludes PPP and related LOC to SBA partner. 2 Includes $61.8 million in the remaining balance of PPP loans originated by First Community Bank and $2.9 million in remaining ba lance of a $10 million line of credit to an SBA partner, who funded PPP loans on behalf of
Slide 23: Investment Portfolio
Investment Portfolio Yield 2.53% 2.49% 1.98% 1.88% (4 th Quarter for 2018 - 2020, and 1 st Quarter for 2021) Effective Duration = 4.37% (millions) 23 PERFORMANCE Composition 3/31/21 US Treasury Securities 3.7% Agency Bonds 0.2% SBA Loan Pools (Fixed) 2.6% SBA Loan Pools (Variable) 6.7% Agency CMOs (
Slide 24: Net Interest Income / NIM (FTE)
Net Interest Income / NIM (FTE) PERFORMANCE 24 Net interest Income (Millions) $35.7 $36.8 $40.0 1Q2021 • Avg. Loan Portfolio Yield 4.32% • Avg. New/Renewed Loan Rate 3.97% • Avg. Investment Portfolio Yield 1.88% • Cost of Deposits 0.17% 1 Net - interest margin (FTE) – 4 th quarter for 2018 - 2020, a
Slide 25: Financial Planning / Investment Advisory Services AUM
$0 $100 $200 $300 $400 $500 $600 12/31/18 12/31/19 12/31/20 03/31/21 $289 $370 $502 $519 Financial Planning / Investment Advisory Services AUM (millions) *S&P 500 – Total Return – 65.3% 25 PERFORMANCE
Slide 26: Investment Advisory Revenue and Pre-Tax Income
$1,683 $2,021 $2,720 $877 1 $283 $289 $808 $293 1 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 2018 2019 2020 1Q2021 Total Revenue Pre-Tax Income Financial Planning / Investment Advisory Services Revenue and Pre - Tax Income (thousands) 26 PERFORMANCE 1 This compares to 1Q20 revenue of $634 and pre -
Slide 27: Residential Mortgage Banking Production
27 Residential Mortgage Banking Production (millions) PERFORMANCE 1 1 This compares to 1Q20 production of $35.3 million.
Slide 28: Residential Mortgage Banking Revenue and Pre-Tax Income
Residential Mortgage Banking Total Revenue and Pre - Tax Income (millions) 28 PERFORMANCE 1 This compares to 1Q20 revenue of $1.0 and pre - tax income of $0.3. 1 1
Slide 29: Core Net Income / Core EPS / Pre-Tax Pre-Provision Earnings
1 Core net income and EPS exclude merger and acquisition costs, gains (losses) on sale of securities and other assets, write - downs on premises held - for - sale, losses on early extinguishment of debt, SC State income tax credit, and one - time deferred tax expense related to The Tax C ut and Jobs
Slide 30: Tangible Book Value
Tangible Book Value 1 1 See Non - GAAP reconciliation on page 36. 30 PERFORMANCE
Slide 31: Dividend
Dividend 31 PERFORMANCE 1 This compares to 1Q20 of $0.12. On 4/12/21, announced a share repurchase authorization of 375,000 shares (5% of the outstanding shares). 1
Slide 32: What's Ahead
WHAT’S AHEAD Impacting Lives for Success and Significance
Slide 33: What's Ahead: In Focus
WHAT’S AHEAD ROA 1.20% ROE 14.00% ER 65.00% “Big leaps” in Automation and Technology to gain efficiency and capacity Growth in the Loan Portfolio Grow the Investment Advisory business to be “much” larger Development of People and Culture Growing the franchise in Upstate SC Growing the franchise in A
Slide 34: Forward-Looking Statements
FORWARD - LOOKING STATEMENTS SAFE HARBOR STATEMENT – In this presentation, unless the context suggests otherwise, references to the “Company” or “FCCO” refer to First Community Corporation and references to “we,” “us,” and “our” mean the combined business of the Company, First Community Bank (or FCB
Slide 35: Disclaimer: Non-GAAP Financial Measures
DISCLAIMER The Bank Behind Your Business NON - GAAP FINANCIAL MEASURES – THIS PRESENTATION CONTAINS CERTAIN NON - GAAP FINANCIAL MEASURES THAT ARE NOT IN ACCORDANCE WITH U . S . GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (“GAAP”) . WE USE CERTAIN NON - GAAP FINANCIAL MEASURES TO PROVIDE MEANINGFUL, SU
Slide 36: Non-GAAP Reconciliation
NON - GAAP RECONCILIATION 36 The table below provides a reconciliation of non - GAAP measures to GAAP for each of the periods presented: The table below provides a reconciliation of non - GAAP measures to GAAP for each of the periods presented: *Excludes merger and acquisition cost, gains (losses) o
Slide 37: The Bank Behind Your Business
THE BANK BEHIND YOUR BUSINESS