First Community (FCCO) investor relations material

Executive summary

• Net income for Q2 2026 rose to $7.6 million ($0.80 diluted EPS), up 46.5% year-over-year, driven by higher net interest and non-interest income, with the SGBG acquisition contributing to growth in loans, assets, and new business lines.

• The acquisition of Signature Bank of Georgia (SGBG) in January 2026 significantly boosted loan and asset growth, especially in government guaranteed lending.

• Announced leadership transition: CEO/President J. Ted Nissen to retire Dec 31, 2026; Vaughan R. Dozier to become CEO and Joseph A. Painter to become President effective Jan 1, 2027.

• Leadership transition began in 2023 and is staged for continuity, with Nissen consulting through 2027.

• Total assets increased 15.3% to $2.4 billion at June 30, 2026, with loans up 20.4% and deposits up 15.7% since year-end 2025.

Financial highlights

• Q2 2026 net income: $7.595 million, up 46.5% YoY; adjusted net income (ex-merger): $7.979 million, up 48.7% YoY.

• Net interest income for Q2 2026 was $19.5 million, up 27.3% from Q2 2025; net interest margin improved to 3.51%.

• Non-interest income rose $1.4 million YoY, led by investment advisory fees (+$535,000), mortgage banking (+$191,000), and government guaranteed lending (+$704,000).

• Non-interest expense increased $2.2 million, mainly due to higher salaries, merger costs, and technology expenses.

• Six-month net income was $13.1 million ($1.39 diluted EPS), up from $9.2 million ($1.18 diluted EPS) in the prior year period.

Outlook and guidance

• Management expects to remain well-capitalized and maintain strong liquidity, with capital ratios above regulatory minimums.

• The company anticipates continued integration of SGBG and realization of synergies, with ongoing focus on loan and deposit growth.

• Board expresses confidence in new leadership and expects seamless transition.

• No material changes to risk factors or forward-looking statements; management succession planned for January 2027.