Slide 1: Come See the Difference
SESE iy Corporation Come See the Difference
Slide 2: Come See the Difference
Come See the Difference
Slide 3: 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 4: Highlights
= - @ Founded in 1995 Highlights @ Total Assets $215 Million (as of 12/31/03) @ Total Return on Stock is 185% (since inception) @EPS Growth Rate is 21.2% (12731799 — 12/31/03 annualized) @ Listed on NASDAQ Small Cap (FCCO) @ Maintained “Well Capitalized” Status @ First ; Community, the Differenc Con
Slide 5: Banking Office Locations
Whtmice Ba ‘Banking Office VW = a Locations Se ee Se 2
Slide 6: Our Timeline
Our Timeline 2 g oo ae oo & CASS EREREE ESE . A Northeast Columbia Banking Office Opened MSE Corporation
Slide 7: Our Timeline (a recap)
Our Timeline (a recap) June 1995: Initial Capitalization Completed $6.9 Million Raised 700 initial Shareholders August 1995 Lexington Banking Office Opened September-1995. Forest Acres Banking Office Opened November 1996 Achieved Profitability 15" Month of Operation June 1998 Secondary Offering Comp
Slide 8: Full Service Commercial Bank
Full Service Commercial Bank Deposit Accounts Loan Services Online Banking Telephone Banking Mortgage Origination Investment Services GY First. fest) munity, Come See.the Difference Corporation
Slide 9: Midlands Banking Market
Midlands Banking Market Come See the Difference
Slide 10: Midlands Banking Market
Midlands Banking Market 190,000 $182,538 170,000 150,000 $125,404 130,000 110,000 $84,548 90,000 a ose 70,000 50,000 30,000 10,000 June, 2000 June, 2001 June, 2002 June, 2003 @ First - Community, - oe oe os . Corporation — *percentage.of market share
Slide 11: Financial Highlights
Financial Highlights Come See the Difference
Slide 12: Total Assets
« ‘ITS | Rhy ‘Total Assets (in thousands). > Corperation $250,000 $215,029 $200,000 - $195,201 $156,555 $150,000 + eee th 986 $100,000 $50,000 { il $0 499090 2000 2001 20020 2NN3
Slide 13: Deposits
DESC $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $76,971 Deposits Corporation —~— $185,258 $168,062 | $134,402 $92,755 $0 1999 2003 2000 2001 2002
Slide 14: Funding Mix 12/31/03
Funding Mix 12/34/03 Corporation Comm! Transaction 3% Comm! MMA, Comm! Savings Cons Transaction Cons MDA Cons Savings Time,100 Time=100 Cash Mgmnt 23% HBEOBBHBOLCEG FHLB
Slide 15: Loans
Loans (in thousands) ; SY $140,000 $121,009 $120,000 4 $100,000 $87,519 eae $80,000 | $67,984 $60,000 ] $40,000 4 $20,000 4 $0 T 1999 2000 2001 2002 2003
Slide 16: Loan Composition 12/31/03
ESC, Corsenton Loan Composition 12/31/03 10% 6% 5% 10% 4 Comml Non RE fH Comml RE UConst & Dev UO Consumer RE @ Home Equity Cons Non RE
Slide 17: Loan Portfolio Highlights
Loan Portfolio Highlights [> Loan Loss Reserve Ratio is 1.41% [>Past Due Ratio History (30 days or more) December 31, 2003 .17% December 31, 2002 .35% December 31, 2001 .48% December 31, 2000 .49% [> Non-Performing Loans $80,000 MSE Corporation
Slide 18: Net Charge-off Ratio
0.40% 0.35% 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% 05% OS hiny Corporation 0.08% | -0.01% Net Charge-off Ratio 0.35% 0.16% 0.01% 4999 2000 2001 20020 £30023
Slide 19: Net Interest Margin
DEShiy Net Interest Margin. Oe pcan 4.70% 7 4.60% 7 4.50% 7 4.40% + 4.33% 4.30% + 4.26% 4.59% ASeR 4.19% s fo | 4.10% 4.02% 4.00% 7 3.90% 3.80% 3.70% T T T T T 1999 2000 2001 2002 »=©2003
Slide 20: Net Income
DES Lin, Net Income (in thousands) Corbeeton 1999 2000 2001 2002 2003
Slide 21: Diluted Net Income Per Share
Din Diluted Net Income Per Share Corseuatgn 1999 2000 2001 2002 £2003
Slide 22: Return on Assets
1.00% 0.80% 0.60% 0.40% 0.20% 0.00% Oris Community Return on Assets - einen te 0.90%9-94% 0.88% . . 0.77% 0-82% | 1999 2000 27001 27007 2003
Slide 23: Return on Equity
Mithiy. “Return on Equity _ Corporation 10.00% 5 9.49% eae J 8.00% 8.35% oneal 6.76% coo, | 5.90% fo | 5.00% + 4.00% + 3.00% 2.00% 1.00% 0.00% T T T T T 4Q0g colalalal Onn Polalaws XINH2
Slide 24: Stock Information
Stock Information Come See the Difference
Slide 25: Trading Characteristics
Trading Characteristics (as of December 31, 2003) @ Market Listing @ # of Shareholders (est) NASDAQ Small Cap 1531 @ Trading Symbol @ # of Shares Outstanding FCCO 1,597,224 @ # of Market Makers @ Market Capitalization 6 $34,739,622 @ Average Daily Trading Volume 636 Shares GY First. fest) munity, Co
Slide 26: Stock Performance
Stock | Performance 31, 2003) [>Price to LTM EPS 19.25X [> Price to Tangible Book 1.85% [>> Quarterly Dividends per Share $.05 [=> Dividend Yield 92% [> Total Return Since Inception 185.0% 3 Years 61.1% 1 Year 63.5% @First. Cornmuni ; tenes ea Come See the Difference
Slide 27: Price History - FCCO
Price History - FCCO (41 /2003-12/31/2003) 70% First Community Corp (se) 60% ™ Dow Jones Industrials 50% S&P 500 Index a F se ee 30% 20% Pat Wir IF 10% 0% 10% -20% 44142003 41/2003 CS). (One Year Stack Price Analysis ~ Corporation 7#1/2003 10/1/2003 12/31/2003
Slide 28: Summary
Summary: Customer Service Culture CrOfiP0S ure Strong commitment communitid oats eRiee 3 ectesvey penser depth disciplined grows, management strategy @® First ; Community, The Story Behind the Numbers ~ Corporation
Slide 29: 2003 Highlights
2003 Highlights Come See the Difference
Slide 30: 2003 Highlights
@ Total Assets Rose 10.1 Percent, From $195.2 Million to $215.0 Million. @ The Loan Portfolio Increased By 21.0 Percent, From $100.0 Million to $121.0 Million @ Non-Interest Income, Led By Mortgage Loan Fees, Grew By $267,000 or 21.7 Percent @ Net Income, After Tax, Grew By A Remarkable 22.7 Percent
Slide 31: 2003 Highlights
@ January 15, 2003 — Began Trading on NASDAQ Small Cap Market @ Developed A Dividend Reinvestment Plan @ Increased Cash Dividend @ Stock Price Increased 63.5%, From $13.30 to $21.75 Per Share @ New ATMs @ Construction of New Office (Our Seventh) in Northeast Columbia, Opened April 15, 2004 @ Online
Slide 32: Looking Forward...
Looking Forward... Come See the Difference
Slide 33: Red Bank; DutchFork Bancshares
@ Red Bank @ DutchFork Bancshares (Newberry Federal Savings Bank) MSE Corporation
Slide 34: Strategic Prospective
Strategic Prospective Come See the Difference
Slide 35: Geographic Fit
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 4.26% - 7" in the Midlands — 18" largest bank in South Carolina Sh
Slide 36: Shareholder / Investor Perspective
Shareholder / Investor Perspective Come See the Difference
Slide 37: Summary: First Community, DutchFork and Combined
Total Assets Total Deposits Total Loans Loan/Dep Midlands Market Share Branches Stock Listing Charter Bank Name Employees SUMMARY (A pproxim ate Num bers) First Communit DutchFork Bancshares © Combined $220MM $207MM $427MM 194MM 141MM 335MM 127MM 55MM 182MM 65% 39% 54% 2.37% 1.89% 4.26% 7 3 10 NASDA
Slide 38: Other
Other Tommy Johnson Newberry Fed. CEO to be First Community EVP and Vice Chairman of the Board Steve Sligh Newberry Fed. CFO to be First Community SVP and on the Board. Steve’s primary responsibility will be management of the investment portfolio SES iy Corporation
Slide 39: Accretion and Increased Market Presence
[|>> Accretive to our earnings in first 12 months (GAAP and Cash) |g With assets over $400 million and a market cap. of nearly $70 million, we will capture increased analyst coverage and market maker interest [-—> 6 Largest publicly traded BHC in SC => Increased Float and Liquidity = De-Novo branchi
Slide 40: Price Premium and Deal Terms
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 to be a Mix of 40% cash and 60% First Community Stock Corporation
Slide 41: Integration
Integration @Systems integration Product Mapping — Deposits and Loans Accounting Issues Continued Excellence at Existing First Community and Newberry Federal Offices Communications — Employee, Customer, Shareholder and Community First. C PAIMIUnity Corporation
Slide 42: Merging of Cultures
Merging of Cultures - Sales & Service - Credit - Risk Management @Regulatory Approval @shareholder Approval @ Anticipated Closing Date — October 1, 2004 First. Community. Corporation
Slide 43: 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 44: Searchable text section of graphics
Searchable text section of graphics shown above [ LOG O] Come See the Difference [GRAPHIC] 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 ou