First Community Corporation · NASDAQ:FCCO
First Community — Conference Presentation (November 2021)
37 slides from First Community's conference presentation, Nov 4, 2021
Slide 1: The Bank Behind Your Business
The Bank Behind Your Business November 4 - 5, 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 doh an impact Impacting lives for success and significance Fest Community Bank
Slide 5: Overview Highlights
» Began in 1995 » 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 – Cornerstone National Bank » Execut
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: Deposits, Asset Quality, Capital, Risk Management, Technology
FOUNDATIONAL FRANCHISE VALUE Great Deposits Excellent Asset Quality Strong Capital 9 Risk Management Technology
Slide 10: Total Deposit Cost and Pure Deposit Growth
Total Deposit Cost 0.39% 0.47% 0.20% 0.12% Pure Deposit Growth FOUNDATIONAL FRANCHISE VALUE Millions 10 12/31/2018 12/31/2019 12/31/2020 9/30/2021 $953.5 $1,021.5 $1,230.3 $1,393.4 Excellent Deposit Franchise • 91% Pure (Non - CD) Deposits • 32% (Non - Interest Bearing DDA Balances) • Largest Commun
Slide 11: Credit Quality
Credit Quality FOUNDATIONAL FRANCHISE VALUE 11 NPA / Assets 2018 2019 2020 2021 YTD 9/30/2021 Net Loan Charge - Offs
Slide 12: Allowance for Loan Losses to Loans
Allowance for Loan Losses to Loans FOUNDATIONAL FRANCHISE VALUE Credit Quality 12 1 This compares to $3,387 through 3Q20. Loan Loss Provision Expense (000s omitted)
Slide 13: Capital Ratios
FOUNDATIONAL FRANCHISE VALUE Capital Ratios 13 *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 14: Risk Management
Risk Management 14 FOUNDATIONAL FRANCHISE VALUE
Slide 15: Pandemic Effect on Technology
Pandemic Effect on Technology 15 FOUNDATIONAL FRANCHISE VALUE » Changed our approach to technology deployment for efficiency gains from “how do we get”, to “how do we best do”, translating to……. ▪ Accelerated Pace for Competitive Advantage ▪ Piloting Early – “Beat the Big Guys”, e.g., BOTS, AI ▪ Plu
Slide 16: Technology
Technology 16 FOUNDATIONAL FRANCHISE VALUE » Self - Service and Contactless Tools When the Customer Prefers ▪ Mobile Apps ▪ Mobile Deposit ▪ Zelle ▪ Fraud Reduction Tools ▪ Contactless Cards » Enabling Technologies to Meet Staffing and Efficiency Needs ▪ Universal Bankers ▪ Replacement of High - Vol
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: Third Quarter 2021 Highlights
PERFORMANCE Third Quarter 2021 20 Highlights » Net income of $4.7 million ($0.63 EPS) » Loan growth (ex. PPP) of $41.5 million (20% annualized growth rate) » Pure deposit growth of $44.7 million (15% annualized growth rate) » Investment Advisory Line of Business ▪ AUM of $588.6 million, which has in
Slide 21: Loan Portfolio
PERFORMANCE LTM Growth = 10.9% 1 1 Excludes PPP and related LOC to SBA partner. 2 Includes $9.1 million in the remaining balance of PPP loans originated by First Community Bank and $1.8 million in the remain ing balance of a $10 million line of credit to an SBA partner, who funded PPP loans on behal
Slide 22: Paycheck Protection Program
PERFORMANCE Paycheck Protection Program 22 ($ in Thousands)
Slide 23: Investment Portfolio
Investment Portfolio Yield 2.53% 2.49% 1.98% 1.62% (4 th Quarter for 2018 - 2020 and 3 rd Quarter for 2021) Effective Duration = 3.66 (millions) 23 PERFORMANCE Composition 9/30/21
Slide 24: Net Interest Income / NIM (FTE)
Net Interest Income / NIM (FTE) PERFORMANCE 24 Net interest Income (Millions) $35.7 $36.8 $40.0 3Q2021 • Avg. Loan Portfolio Yield 4.86% • Avg. Ex PPP Loan Portfolio Yield 4.29% • Avg. New/Renewed Loan Rate 3.84% • Avg. Investment Portfolio Yield 1.62% • Cost of Deposits 0.12% 1 Net - interest margi
Slide 25: Financial Planning / Investment Advisory Services AUM
Financial Planning / Investment Advisory Services AUM (millions) *S&P 500 – Total Return – 80.4% 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: Residential 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
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 On 4/12/21, announced a share repurchase authorization of 375,000 shares (5% of the outstanding shares).
Slide 32: What's Ahead
WHAT’S AHEAD Impacting Lives for Success and Significance
Slide 33: What's Ahead: Near Term and Longer Term
WHAT’S AHEAD Near Term $2.00 EPS - - - - - - - - - - - - - - - - Longer Term 1.20% ROA 14.00% ROE 65.00% ER “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 Cultur
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
First Community — Conference Presentation (November 2021) on 6ix