First Community Corporation · NASDAQ:FCCO
First Community — Investor Presentation (March 2021)
37 slides from First Community's investor presentation, Mar 17, 2021
Slide 1: The Bank Behind Your Business
The Bank Behind Your Business March 17, 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: Our Identity, Purpose and Cause
OVERVIEW OUR IDENTITY OUR PURPOSE AND CAUSE Everything we do has an i Impacting lives. for success and significance © © tarsi Community bank
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 and Total Deposit Cost
Total Deposit Cost 0.22% 0.39% 0.47% 0.20% ( 4 th Quarter of each Year ) Pure Deposit Growth FOUNDATIONAL FRANCHISE VALUE Millions 10 12/31/2017 12/31/2018 12/31/2019 12/31/2020 $907.6 $953.5 $1,021.5 $1,230.3 Excellent Deposit Franchise • 89% Pure (Non - CD) Deposits • 32% (Non - Interest Bearing D
Slide 11: Credit Quality
Credit Quality FOUNDATIONAL FRANCHISE VALUE 11 NPA / Assets 15.8% 27.2% 24.1% 3.7% 2.1% 1.2% 2017 2018 2019 2020 1 Excludes loans held for sale and PPP related loans. Net Loan Charge - Offs Loan Deferrals 1
Slide 12: Credit Quality: Industry Segments Most Impacted by Pandemic
Credit Quality FOUNDATIONAL FRANCHISE VALUE Industry Segments Most Impacted by Pandemic 12 12/31/20
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)
Slide 14: Capital Ratios
FOUNDATIONAL FRANCHISE VALUE Capital Ratios 14
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 (thousands)
Slide 22: Loan Portfolio
LTM Growth = 8.1% 1 1 Excludes PPP and related LOC to SBA partner. 2 Includes $42.2 million in the remaining balance of PPP loans originated by First Community Bank and a $5.2 million in remaini ng balance of a $10 million line of credit to an SBA partner, who funded PPP loans on behalf of First Com
Slide 23: Investment Portfolio
Investment Portfolio Yield 2.20% 2.53% 2.49% 1.98% (4 th Quarter of each Year) Effective Duration = 3.71 (millions) 23 PERFORMANCE Composition 12/31/20
Slide 24: Net Interest Income / NIM
Net Interest Income / NIM PERFORMANCE 24 Net interest Income $35.70 $36.80 $40.00 4Q2020 • Avg. Loan Portfolio Yield 4.36% • Avg. New/Renewed Loan Rate 4.03% • Avg. Investment Portfolio Yield 1.98% • Cost of Deposits 0.20% 1 Non - interest margin (FTE) – 4 th quarter of respective year.
Slide 25: Financial Planning / Investment Advisory Services AUM
Financial Planning / Investment Advisory Services AUM (millions) *S&P 500 – Total Return – 48.8% 25 PERFORMANCE
Slide 26: Investment Advisory Revenue and Pre-Tax Income
Financial Planning / Investment Advisory Services Revenue and Pre - Tax Income (thousands) 26 PERFORMANCE
Slide 27: Residential Mortgage Banking Production
27 Residential Mortgage Banking Production (millions) PERFORMANCE
Slide 28: Mortgage Banking Revenue and Pre-Tax Income
Residential Mortgage Banking Total Revenue and Pre - Tax Income (millions) 28 PERFORMANCE
Slide 29: Core Net Income / Core EPS / Pre-Tax Pre-Provision Earnings
Core Net Income 1 / Core EPS 1 / 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,
Slide 30: Tangible Book Value
Tangible Book Value 1 1 See Non - GAAP reconciliation on page 36. 30 PERFORMANCE
Slide 31: Dividend
PERFORMANCE Dividend 2017 2018 2019 2020 3t
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 1, 2 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 (loss
Slide 37: The Bank Behind Your Business
THE BANK BEHIND YOUR BUSINESS