First Community Corporation · NASDAQ:FCCO
First Community — Investor Presentation (October 2004)
40 slides from First Community's investor presentation, Oct 26, 2004
Slide 1: First Community Corporation - Come See the Difference
BYES iy Corpordtion Come See the Difference
Slide 2: Our Vision
Our Vision @To be the premier @ High expectations, community bank in the grounded in the things markets we serve. we know we can trust. @ Markets as communities @ “The Difference” and neighborhoods that -Full range of financial have a local identity. products cin | F -Keen interest in the @ Vision i
Slide 3: Highlights
@ Founded in 1995 Highlights ®@ Total Assets $262 Million (as of 9/30/04) @ Total Return on Stock is 162.0% (since inception) @EPS Growth Rate is 17.4% (12731799 — 9/30/04 annualized) @ Listed on NASDAQ Small Cap (FCCO) @ Maintained “Well Capitalized” Status Mi )First.. Oast $ eee Come See the Diffe
Slide 4: South Carolina market map
Slide 5: Banking Office Locations
Slide 6: Our Timeline
Our Timeline June 1995 November 1996 Initial Capitalization Completed Achieved Profitability $6.9 Million Raised 15" Month of Operation 700 initial Shareholders June 1998 Secondary Offering. Completed August 1995 $6.6 Million Raised Lexington Banking Office Opened Underwritten by Edgar Norris Purpos
Slide 7: Our Timeline (continued)
Our Timeline (continued) March 1999 Irmo Banking Office Opened November 1999 Cayce-West Columbia Banking Office Opened March 2000 Gilbert Banking Office Opened February 2001 Chapin Banking Office Opened May 2001 Declared 5% Stock Dividend January 2002 Declared 5-for-4 Stock Split April 2002 Began Pa
Slide 8: Full Service Commercial Bank
Full Service Commercial Bank Deposit Accounts Loan Services Online Banking Telephone Banking Mortgage Origination Investment Services First... Oe : Comportiohi Come See the Difference
Slide 9: Midlands Market
Corporation Midlands Market Come See the Difference
Slide 10: Midlands Area Market Points of Interest
Midlands Area Market Points of Interest In 2004, Treated among the Top 30 Livajate Communitiesas com by The Paginership for Business OpportunitiesvE. pansion Management Magazine) @)First.. Mist, 7 Copa oh Come Seethe Difference
Slide 11: Market Data - Statistics
Market Data-statistics Total Columbia MSA Population 572,799 (2000 Census) @ Population Growth (2004-2009 projected) Lexington.County .7.0% Richland,County ..5.3% Newberry County 3.2% @ Median Household Income Growth (2004-2009 projected) Lexington County + 11.1% Richland County 11.9% Newberry Count
Slide 12: Market Data - Other Factors
Market Data -cther factors @ Columbia, the state capital, is part of this market @ Lexington area ranked #1 in South Garolina in population growth in 2002 @ Diversified Economic Base @ Strong Vibrant Economy
Slide 13: Midlands Banking Market
Midlands Banking Market (Richland and Lexington Counties) 190,000 $182,539 $201,919 170,000 $156,417 150,000 130,000 110,000 90,000 70,000 50,000 30,000 10,000 + $125,404 $84,548 June, 00 June, 01 June, 02 June, 03 June 04 Total Market Deposits are $7.8 Billion with $1.0 Billion in Growth (14.7%) Si
Slide 14: Financial Highlights
Corporation Financial Highlights Come See the Difference
Slide 15: Total Assets
iy Co (in thousands) ee Total Assets (in 300,000 - $262,047 250,000 4 GR (rH $215,029 200,000 -| $195,201 $156,555 150,000 + $111,986 100,000 424889 a ao / 0 1999 2000 2001 2002 2003 September 30, 2004
Slide 16: Deposits
OF i < Deposits (in thousands) Firs’ Corporation $214,652 220000 $185,258 $168,062 170000 $134,402 120000 $92,755 $76,971 70000 [| 20000 1 T T 1 1 1999 2000 2001 2002 2003 September 30, 2004
Slide 17: Funding Mix 9/30/04
First... Comntnity Funding Mix 9/30/04 Corporation 08% 3% H 16% oe f 119% 10% 12% Q Transaction @ MNDA 0 Savings OTime < $100 @Time > $100 Cash Mgmnt m Borrowings (FHLB 4.0 Mil. - Trust Preferred 15.0 Mil
Slide 18: Loans
fo) Ssh. Loans (in thousands) Corporation 140000 - $132,814 $121,009 120000 | $99,991 100000 | $87,519 esse $67,984 60000 | $52,297 40000 | lL] 20000 : : : : : 1 1999 2000 2001 2002 2003 September 30, 2004
Slide 19: Loan Composition 9/30/04
CODES ity Corporation Loan Composition 9/30/04 09% o7% Bo% B4% 010% B61i% OComml Non RE @Comml RE OConst & Dev OConsumer RE @ Home Equity Cons Non RE
Slide 20: Loan Portfolio Highlights
Loan Portfolio Highlights [> Loan Loss Reserve Ratio is 1.40% ( Peer Group — 1.24%) (> Past Due Ratio History (30 days or more) September 30, 2004 14% (Peer Group — 0.76%) December 31, 2003 17% December 31, 2002 35% December 31, 2001 48% (> Non-Performing Assets — $137,000 (0.05% vs Peer Group of 0.
Slide 21: Net Charge-off Ratio
Corporation SFist. Net Charge-off Ratio 9 040% nese, 0.35% 030% 0.25% 0.20% 0.16% 0.15% 0.10% | 9.08% 0.05% a 0.02% 0.00% = : es LL, 0.05% 0.01% 0.01% 1999 2000 2001 2002 2003 © 9/30/04 Annualized
Slide 22: Net Interest Margin
iRhiy: Net Interest Margin Compe 4.90% 4.70% 4.59% 450% 4.33% 430% 4.19% 4.10% aMEN) gyi 3.70% 4 1999 2000 2001 2002 2003 September 30, 2004
Slide 23: Net Income
Co First. Corpor tion Net Income (in thousands) $818 0% $1,797 $1,793 D 1999 2000 caGR 18 $1,464 oan $1,104 2001 2002 2003 September 30,2004
Slide 24: Net Income Per Quarter
CSP Net Income Per Quarter Corporation (Past Four Quarters) 500 5 480 4 460 4 440 4 493 439 431 422 420 4 _ | | 380 T T T 4th Qtr 2003 1st Qtr 2004 2nd Qtr2004 3rd Qtr 2004
Slide 25: Diluted Net Income Per Share
cS)Fist ivy Diluted Net Income Per Share Grpecetion $1.08 $1.07 1999 2000 2001 2002 2003 9/30/04 Annualzed
Slide 26: Return on Assets
@)First Community, - Return on Assets Carperton 1.00% 0.94% 0.90% 0.88% nao 077m 082% 0.80% 0.60% | 0.40% 0.20% 0.00% : : : i : 1 1999 2000 2001 2002 2003 «© 98004 Annualized
Slide 27: Return on Assets (annualized)
1999 2000 2001 2002 2003 9/30/04 Annualized
Slide 28: Stock Information
Corporation Stock Information Come See the Difference
Slide 29: Stock Performance
Stock Performance as of 2004 (Based on $20.00 per {> Price to LTM EPS 18.9X [> Price to Tangible Book 1.60X {> Quarterly Dividends per Share $.05 (> Dividend Yield 1.00% (> Total Return Since Inception 162.0% 3 Years 42.9% First... Spin | Corpeetioh Come See. the Difference
Slide 30: Price History - FCCO
Price History - FCCO (141/2003-9/30/2004) + 60% First Community Corp (se) 55% mD “ 50% Industrials 45% ™@ S&P 500 Index SZ li Nasdaq Composite 40% Index 35% 30% 25% 20% 15% 40% 5% 0% 5% Jan 200HApr 2003ul 20030ct 200Ban 2004 pr 2004 Sep 2004 CO), < One Year Stock Price Analysis Corporation
Slide 31: DutchFork Bancshares (Newberry Federal Savings Bank)
SES ny | Corporation DutchFork Baneshares (Newberry Federal Savings Bank) Come See the Difference
Slide 32: Strategic Perspective
Strategic P ti Geographic Fit - 10 offices surrounding Lake Murray and in Columbia The Chapin office acquisition surpassed our expectations Newberry Federal is the market share leader in Newberry with 35% market share Combined Midlands market share 4.09% - 7" in the Midlands — 18" largest bank in So
Slide 33: Summary: First Community, DutchFork and Combined
TotalAssets Total Deposits TotalLoans LoaniDep Midlands Market Share Branches Stock Listing Charter Bank Name Employees First Community oBo04 $262MM 215MM 131MM 61% 245% 7 NASDAQ OCC National First Community SUMMARY DutchFork Bancshares Combined Gos $203MM $465MM 135MM 350MM 51MM 182MM 38% 52% 164%
Slide 34: Other
Other Tommy Johnson Newberry Federal CEO is now First Community EVP and Vice Chairman of the Board Steve Sligh Newberry Fed. CFO is now First Community SVP and on the Board. Steve’s primary responsibility is management of the investment portfolio et at Corporation
Slide 35: Accretive to earnings in first months
{> Accretive to our earnings in first 12 months (GAAP and Cash) > With assets over $460 million and a market cap. of nearly $60 million, we will capture increased analyst coverage and market maker interest {> 6 Largest publicly traded BHC in SC = Increased Float and Liquidity = De-Novo branching dil
Slide 36: Price Premium is 11.0%
Price Premium is 11.0% Price to Book Value is 1.5x Price to LTM EPS is 12.8x Post Merger Cost Savings are Estimated to be 16% Purchase Price was a Mix of 40% cash and 60% First Community Stock et at Corporation
Slide 37: Trading Characteristics
Trading Characteristics @ Market Listing @ # of Shareholders (est) NASDAQ Small Cap 2600 @ Trading Symbol @ # of Shares Outstanding FCCO 2,801,517 @ # of Market Makers @ Market Capitalization 6 $56,030,340 @ Average Daily Trading Volume 2,045 Shares Firs Sti : ey Come See the Difference
Slide 38: Customer Service Culture
Customer Service Culture 5 Strong commitment | Aggressive yet to planning and. disciplined growth execution strategy Employee Culture Strong & Credit Culture Sommunities Infrastructure Developed: Organizational growth Management depth ~ Training : Risk management
Slide 39: Safe Harbor Statement
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 OTHERWISE. THE WORDS "BELI
Slide 40: Searchable text section of graphics
Searchable text section of graphics shown above [ LOG O] Come See the Difference Our Vision • To be the premier community bank in the markets we serve. • Markets as communities and neighborhoods that have a local identity. • Vision is best realized through the daily interactions between our employee
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