First Community Corporation · NASDAQ:FCCO
First Community — Investor Presentation (February 2006)
36 slides from First Community's investor presentation, Feb 2, 2006
Slide 1: First Community Corporation - Come See the Difference
SEIS iy Corporation Come See the Difference
Slide 2: Our Vision
Our Vision @ To be the premier community bank in the markets we serve. @ Markets as communities and neighborhoods that have a local identity. @ Our vision is best realized through daily interactions between our employees and customers. @ High expectations, grounded in the things we know we can trust
Slide 3: Highlights
Highlights Founded in 1995 Total Assets of $467.5 million (12/31/05) Strong base of core deposits with a low cost of funds Solid loan growth with excellent credit quality Listed on NASDAQ Small Cap (FCCO) Maintained “Well Capitalized” status Eleven banking office locations SC Chamber of Commerce ran
Slide 4: Slide 4
Slide 5: Newberry
Newey @& 10 km. Rea Bank @> beng GN
Slide 6: Our Timeline
Our Timeline Fune 1995 Initial Capitalization Completed $6.9 Million Raised 700 Initial Shareholders August 1995 Lexington Banking office opened September 1995 Forest Acres Banking office opened Noventber 1996 Achieved Profitability 15¢ Month of Operation June 1998 Secondary Offering Completed $6.6
Slide 7: Our Timeline (cont.)
Our Timeline (cont.) March 1999 Inmo Banking office opened November 1999 Cayce-West Columbia Banking office opened March 2000 Gilbert Banking office opened February 2004 Chapin Banking office opened May 2001 Declared 5% Stock Dividend January 2002 Declared 5-for-4 Stock Split
Slide 8: Our Timeline (cont.)
Our Timeline (cont.) Apwit 2002 Began Payment of Quarterly Cash Dividends Fanuary 2003 Began Trading on NASDAQ Small Cap Market Aprit 2004 Northeast Columbia Banking office opened October 2004 Merger with Newberry Federal Savings Bank Completed February 2005 Red Bank Banking office opened December 2
Slide 9: Midlands Market
MDF, Cormmunity, Corporation Midlands Market Come See the Difference
Slide 10: Midlands Area Market — Points of Interest
Midlands Area Market — Points of Interest * Ranked 16'" in the nation in mid-sized dities as the best place tQ live and work (Employment Reviéw Magazine) ¢ Ranked 12% in America’s fap 50’cities for Business Opportunities (Expansion Management Magazine)
Slide 11: Market Data — statistics
Market Data — statistics Total Columbia MSA Population 647,158 (2003 Census) @ Population Growth (projected 2010) Lexington County 7.3% Richland County 5.3% Newberry County 3.7% Kershaw County 5.4% @ Median Household Income Growth (2004-2009 projected) Lexington County 11.1% Richland County 11.9% Ne
Slide 12: Market Data — other factors
Market Data — other factors @ Columbia, the state capital, is part of this market @ Lexington area ranked #1 in SC in population growth and considered to be fastest growing area in SC @ Diversified Economic Base @ Strong Vibrant Economy
Slide 13: Midlands Banking Market
Midlands Banking Market (Richland, Lexington and Newberry Counties) 400000 350000 | $339,608 300000 + 250000 4 $201,919 sla J $182,539 18 200000 4 $456,417 ce agile 160000 + 100000 4 50000 | aol ° 2002 2003 2004 2005 Total Market Deposits are $9.8 Billion with $2.1 Billion in Growth (27.7%) since Ju
Slide 14: Financial Highlights
MDF, Cormmunity, Corporation Financial Highlights Come See the Difference
Slide 15: Total Assets
500,000 450,000 490,000 350,000 300,000 250,000 200,000 450,000 400,000 50,000 Total Assets {in thousands) $156,555 S58 $467,505 $215,029 $195,201
Slide 16: Deposits
490,000 350,000 300,000 250,000 200,000 450,000 100,000 50,000 Deposits {in thousands) $134,402 $337,064 $185,258 $168,062 $349,604
Slide 17: Deposit Information
Deposit Information 12/31/04 12/31/05 Core Deposits Core Deposits 2005 Growth $287,094 $297,835 $10,741 (3.7%) Non Interest Bearing Deposits/Total Deposits 16.40% 9/30/05 occ 9/30/05 UBPR Peer Interest Expense/Average Assets 1.54 1.79 Total Interest Bearing Deposits 1.84 2.13 Transaction Accounts 0.
Slide 18: Loans
250,000 200,000 450,000 100,000 50,000 Loans {in thousands) $87,519 $186,771 $121,009 $99,991 $221,654
Slide 19: Loan Composition
Loan Composition (December 31, 2005) 109.3% 04.0% 010.0% 016.8% 050.9% Conn! Non RE Conn RE (Const & Dev (OConsuner RE Hore Equity Cons Non RE
Slide 20: Loan Portfolio Highlights
Loan Portfolio Highlights (> 2005 Loan Growth of $34.9 million (18.7%) > Loan Loss Reserve Ratio is 1.21% > Past Due Ratio History (30 days or more) December 31, 2005 -18% (Peer Group — 0.73%) December 31, 2004 26% December 31, 2003 17% December 31, 2002 35% December 31, 2001 48% {> Non-Performing A
Slide 21: Net Charge-Off Ratio
0.40%, 0% 0.3%, 0.25%, 0.20% 0.15%, 0.10% 0.05%, 0.00%, 0.05%, Net Charge-Off Ratio 0.35% 0.19%, 0.16%, 0.13%, — 0.01% 2001 2002 2003 2004 2005
Slide 22: Investment Portfolio Highlights
Investment Portfolio Highlights @ Decreased from 43.0% of total assets at 12/31/04 to 37.8% at 12/31/05 @ Structured to provide cash flow to fund loan growth @ Modified duration of 2.83 years @ FTE Yield in December 2005 of 4.49%
Slide 23: Net Interest Margin
Net Interest Margin 4.50%, 4.02%, 3.82% | | | 2004 : 2005 4.00%, 3.50%, 3.00%, 2.50% 2.00%, 1.50% 1.00% 0.50%, 0.00%,
Slide 24: Net Income
$3,500 $3,000 $2,500 $2,000 $1,500 Net Income {in thousands) $1,104 $2,185 $1,797 $4,464
Slide 25: Net Income Per Quarter
900 800 Net Income Per Quarter (Past Four Quarters) 854 780 2 : ; 1st Qtr 2005 2nd Qtr 2005 3rd Qtr 2005 4th Qtr 2005
Slide 26: Diluted Net Income Per Share
1.20 1.00 0.80 0.60 0.40 0.20 0.00 Diluted Net Income Per Share $1.08 $1.09 $1.04 $0.90 $0.68 : ~ 2001 ~ 2002 2003 2004 2005
Slide 27: Stock Information
SDE ity Corporation Stock Information Come See the Difference
Slide 28: Stock Information
Stock Information As of December 31, 2005 (Based on $18.50 per share) [> Trading Symbol FCCO [> Market Listing NASDAQ Small Cap [>> Price to LTM EPS 17.8X [> Price to Book 1.04X [> Price to Tangible Book 2.22X (>> auarterly Dividends per Share $.05 [> Dividend Yield 1.08% {> Number of Shareholders (
Slide 29: 2006 and Beyond
MDF, Cormmunity, Corporation 2006 and Beyond Come See the Difference
Slide 30: Continued Focus on Quality Organic Loan Growth
[> continued Focus on Quality Organic Loan Growth » Since October 2004 (merger with Dutchfork), loan/deposit ratio has increased from 54% to 63%. » Continued loan growth will drive earnings accretion with yield pick-up from investment portfolio to loan portfolio. » Additional commercial bankers to b
Slide 31: Passionate Focus on Core Deposit Growth
[> Passionate Focus on Core Deposit Growth >» We have a competitive edge since we do not rely on high cost, rate sensitive funding to support our balance sheet > Courier Service » Online Banking / Free Bill Pay » Cash Management Accounts >» New Marketing campaign focused on deposit opportunities >»
Slide 32: Successful Integration of DeKalb Bankshares
[>> successful integration of DeKalb Bankshares (holding company for The Bank of Camden) >» One banking office in Camden Fast-growing contiguous market to Richland County Same media market $45.3 million in total assets $29.3 million in total deposits vYvv¥Yv¥Y¥ $29.4 million in total loans
Slide 33: DeKalb Bankshares (cont.)
[>>> DeKalb Bankshares (cont.) > On a Proforma basis: Pushes us above $500 million in total assets DeKalb’s 100% loan to deposit ratio provides a nice boost to our goal of increasing our loan to deposit ratio Our funding/liquidity removes some constraints that have limited The Bank of Camden Larger
Slide 34: The Story Behind the Numbers
The Story Behind the Numbers Customer Service Culture Credit Culture infrastructure Developed: Organizational growth Management depth Training Risk management Strong commitment to planning and execution Aggressive yet disciplined growth strategy Strong & growing communities Employee Culture
Slide 35: Safe Harbor Statement
Co Pst ity Corporation 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 OTH
Slide 36: Come See the Difference
SBS iy Corporation Come See the Difference
First Community — Investor Presentation (February 2006) on 6ix