First Community Corporation · NASDAQ:FCCO
First Community — 2013 U.S. Bank Conference
33 slides from First Community's conference presentation, Aug 22, 2013
Slide 1: 2013 U.S. Bank Conference
Mike Crapps President and CEO 2013 U.S. BANK CONFERENCE August 22, 2013 Joe Sawyer Executive Vice President and CFO
Slide 2: First Community Bank Outline
2 FIRST COMMUNITY BANK OUTLINE I. Background II. 2013 Performance III. Savannah River Financial Corporation Acquisition IV. Summary V. Addenda
Slide 3: Background
3 BACKGROUND
Slide 4: First Community Bank history and profile
4 Started in 1995 Lexington Forest Acres Profitable in 15 months Four (4) acquisitions 2004 – Newberry Federal 2006 – Bank of Camden 2008 – Two (2) Financial Planning practices 2011 – Palmetto South Mortgage Corp. Six (6) De-Novo Branches June 30, 2013 Total assets -- $633 million Eleven (11) bankin
Slide 5: Vision
5 VISION As the provider of choice of financial solutions to local businesses and professionals in the markets we serve, we optimize the long-term return to our shareholders, while providing a safe and sound investment.
Slide 6: Lines of Business
6 LINES OF BUSINESS Commercial and Retail Banking Residential Mortgage Banking Financial Planning and Investment Advisory Services
Slide 7: Core Values
7 CORE VALUES All of the above is accomplished, while the company and its employees remain grounded in its core values: Quality and integrity in all endeavors Passionate focus on the customer experience Mutual respect for colleagues and their unique role in the Bank’s success
Slide 8: Experienced Management Team
8 Name / Position Education Years in Banking Years with FCCO Prior Experience Michael C. Crapps President & Chief Executive Officer B.S., Economics, Clemson M.B.A., USC 33 19 Republic National Bank Joseph G. Sawyer Executive Vice President & Chief Financial Officer B.A., Political Science, Citadel C
Slide 9: Largest Community Bank in the Midlands
9 As of June 30, 2012. $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 27.38% 26.57% 13.20% 9.07% 5.40% 4.74% 3.12% 2.28% 1.75% 0.89% LARGEST COMMUNITY BANK IN THE MIDLANDS
Slide 10: Stock Performance
10 STOCK PERFORMANCE One Year Total Return vs. Relevant Indices Common Stock Cash Dividends 46 Consecutive Quarters January 2013 – Increased to $0.05 per share July 2013 -- Increased to $0.06 per share Current Yield – 2.30%
Slide 11: 2013 Performance
11 2013 PERFORMANCE
Slide 12: Positioned for Tomorrow. Now
12 POSITIONED FOR TOMORROW. NOW 1 Building out current lines of business to reach their full potential 2 Identifying opportunities in the Midlands for new banking offices 3 A disciplined approach to expanding our foot print to other South Carolina communities that are a good match for our brand of c
Slide 13: Key Financial Metrics
13 KEY FINANCIAL METRICS First Community Corporation For the 12 Months Ended At or for the Six Months Ended June 30, Financial Highlights 2010 2011 2012 2013 ($000), except where otherwise noted & per share data Balance Sheet Total Assets $599,023 $593,887 $602,925 $633,185 Total Loans (not includin
Slide 14: Strength in Revenue Diversification: Customer Non-Interest Income
14 STRENGTH IN REVENUE DIVERSIFICATION CUSTOMER NON-INTEREST INCOME ($000) Customer Non-Interest Income 2010 2011 2012 JUN 30 2013 YTD Deposit Service Charges $1,875 $1,810 $1,562 $728 ATM / Debit Card 840 1,060 1,129 579 Investment Advisory / Financial Planning 501 767 651 416 Mortgage Fees 1034 1,
Slide 15: Strength in Revenue Diversification: Mortgage
15 STRENGTH IN REVENUE DIVERSIFICATION MORTGAGE 2012 1Q2013 2Q2013 2013 YTD Production (millions) $140.1 $34.4 $36.6 $71.0 Purchase $44.8 $10.4 $17.9 $28.3 Refinance $95.3 $24.0 $18.7 $42.7 % Purchase 32.0% 30.2% 48.9% 39.9% Revenue (000s omitted) $4,242 $1,016 $1,184 $2,199 % Yield 3.03% 2.95% 3.23
Slide 16: First Community Corporation / Savannah River Banking Company
S) First SAVANNAH Community RIVER Corporation BANKING COMPANY
Slide 17: Transaction Terms
17 TRANSACTION TERMS Buyer: First Community Corporation (“FCCO”) Seller: Savannah River Financial Corporation (“SRFC”) Transaction Value: $33.6 million1 Consideration: 60% Cash / 40% Stock Price Per Share: $11.00 Price/Tangible Book: 113% Price Collar: Pre-determined fixed exchange ratio should FCCO
Slide 18: Natural Combination
18 NATURAL COMBINATION Contiguous and similar markets Similar cultures & strategies focused on local businesses and professionals
Slide 19: Central Savannah River Area Highlights
19 CENTRAL SAVANNAH RIVER AREA HIGHLIGHTS Diverse economy - strong healthcare, sciences and technology industries 12+ hospitals – economic impact of ~$8 billion and employs 20,000 people Savannah River Site – US Department of Energy facility – annual budget of $2 billion and over 12,000 employees Ro
Slide 20: Pro Forma Loans: June 30, 2013
20 Source: SNL Financial, SRFC data is bank-level PRO FORMA LOANS: JUNE 30, 2013 FCCO Pro Forma SRFC C&D 7.2% 1-4 Fam 21.8% HELOC 7.3% OwnOcc CRE 21.6% Other CRE 31.7% Multifam 1.9% C&I 6.0% Consr & Other 2.3% C&D 13.2% 1-4 Fam 19.1% HELOC 5.4% OwnOcc CRE 15.1% Other CRE 27.9% Multifam 0.1% C&I 16.1
Slide 21: Pro Forma Deposits: June 30, 2013
21 PRO FORMA DEPOSITS: JUNE 30, 2013 Non Int. Bearing 21.0% NOW Accts 8.9% MMDA & Sav 36.9% Retail Time 20.0% Jumbo Time 13.2% Non Int. Bearing 9.8% NOW Accts 25.5% MMDA & Sav 43.4% Retail Time 7.3% Jumbo Time 14.1% Non Int. Bearing 18.7% NOW Accts 12.3% MMDA & Sav 38.2% Retail Time 17.4% Jumbo Time
Slide 22: Asset Quality: June 30, 2013
22 ASSET QUALITY: JUNE 30, 2013 FCCO Pro Forma SRFC Source: SNL Financial, SRFC data based on call reports and is bank-level. C&D 1.3% 1-4 Fam 12.1% OwnOcc CRE 35.2% Other CRE 18.0% C&I 0.9% Consr & Other 0.1% TDRs 0.6% OREO 31.9% Other CRE 86.5% TDRs 0.7% OREO 12.8% C&D 1.1% 1-4 Fam 10.9% OwnOcc CR
Slide 23: First Community Corporation / Savannah River Banking Company
SAVANNAH Ds AER on Community Corporation BANKING COMPANY 23
Slide 24: Financial Impact
24 FINANCIAL IMPACT Pro Forma institution 13 locations 6 counties 2 MSAs 2 states Attractive Pro Forma Balance Sheet Total assets of $775 million Total loans of $450 million Total deposits of $635 billion Strong Pro Forma Capital Ratios Leverage ratio ~ 9.25% Tier 1 RBC ratio ~13.75% Total RBC ratio
Slide 25: Transaction Rationale
25 TRANSACTION RATIONALE • Strategic franchise expansion into contiguous and similar markets • Metro Augusta is a growing and dynamic economic market • Entrance into a market historically favorable to community banks • Gaining critical mass – step towards reaching $1.0 billion in assets • Significan
Slide 26: Transaction Summary
26 TRANSACTION SUMMARY Shared commitment to quality and integrity Contiguous and similar markets Similar cultures and strategies focused on local businesses and professionals Additional Credit Capacity Additional Product Offerings Low integration risk Favorable EPS accretion
Slide 27: Summary
27 SUMMARY
Slide 28: First Community Summary
28 FIRST COMMUNITY SUMMARY Executing its growth strategy Organic – all three lines of business Targeted De-novo Strategic M&A High Quality Balance Sheet Favorable Deposit mix resulting in low cost of deposits Excellent credit quality Capital strength Earnings Forward momentum Revenue diversification
Slide 29: Addenda
29 ADDENDA
Slide 30: Addenda A: Financial Profile – Savannah River
30 ADDENDA A: FINANCIAL PROFILE – SAVANNAH RIVER SAVANNAH RIVER FINANCIAL CORPORATION For the Twelve Months Ended Company Information In $000s except for per share data 12/31/10 12/31/11 12/31/12 03/31/13 06/30/13 407 Silver Bluff Road, SW Aiken, SC 29803 Balance Sheet CEO: J. Randolph Potter Total
Slide 31: Addenda B: Credit Due Diligence
31 ADDENDA B: CREDIT DUE DILIGENCE • A robust balance sheet analysis to evaluate credit exposure – Reviewed $72.8 million (64%) of the total loan portfolio • 100% of special mention credits - $5.7 million • 100% of substandard credits - $2.1 million – Overall loan portfolio is considered strong with
Slide 32: Forward-Looking Statements
32 FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements relating to the financial condition, results of operations and business of First Community Corporation and its subsidiary First Community Bank. These forward looking statements involve risks and uncertainties and are
Slide 33: First Community Corporation – Come See the Difference
©, First | Community Corporation Come See the Difference