<PAGE>

                                 EXHIBIT (10) n.


                        AMENDMENT TO SETTLEMENT AGREEMENT

     This Agreement is made as of May 6, 1998 between First Community Financial
Group ("FCFG"), First Community Bank ("Bank"), and Michael D. Edwards and
Marieke G. Edwards (collectively, "Edwards").

                                   BACKGROUND

     The parties entered into a Settlement Agreement in August, 1997, a copy of
which is attached as Exhibit A.  Since entering into the Settlement Agreement,
disputes have arisen between the parties which they desire to resolve by
entering into this Amendment to the Settlement Agreement.

                                      TERMS

The Settlement Agreement is hereby supplemented and amended as follows.

1.   Concurrently with execution of this Amendment, Edwards shall execute a
     Stock Purchase and Sale Agreement in the form attached as Exhibit B.  The
     Stock Purchase and Sale Agreement obligates Edwards to exercise the stock
     options described in paragraph 5 of the Settlement Agreement and sell the
     stock underlying the options to certain officers and directors of FCFG and
     the Bank.

2.   From and after the date of this Amendment, Edwards promises not to attend
     any annual meeting of the Bank, either personally or by proxy, and promises
     not to exercise any voting rights as to the shares of FCFG stock he
     presently owns or which he will hereafter acquire upon exercise of his
     stock options.  Edwards also promises not to exercise any other rights he
     may have as a shareholder of FCFG.

3.   Edwards agrees that except to the extent that he must exercise the stock
     options described above to perform the attached Stock Purchase and Sale
     Agreement, he will not acquire record or beneficial ownership of any shares
     of FCFG.

4.   Edwards acknowledges that if he breaches paragraphs 13, 14, or 22 of the
     Settlement Agreement, FCFG and Bank are likely to suffer significant injury
     and damage which would be very difficult if not impossible to quantify.
     FCFG and Bank acknowledge that if either of them breach paragraph 22 of the
     Settlement Agreement, Edwards is also likely to suffer significant injury
     and damage which would be very difficult if not impossible to quantify.
     Consequently, from and after the date of this Amendment,  if Edwards takes
     any action which breaches paragraphs 13, 14, or 22 of the Settlement
     Agreement or FCFG or Bank takes any action which breaches paragraph 22 of
     the Settlement Agreement, the breaching party shall pay the non-breaching
     party liquidated damages of $25,000 per occurrence within ten (10) days
     after the breach is established.


1
<PAGE>

5.   If one of the parties believes another has breached paragraphs 13, 14, or
     22, such party shall notify the party alleged to have breached in writing
     that a breach has occurred and describe the breach with specificity.  If
     the party alleged to have breached fails to pay the liquidated damages
     amount within ten (10) days of receipt of this notice, the parties agree to
     submit any such disputes to binding arbitration before a single arbitrator
     in accordance with the Commercial Arbitration Rules of the American
     Arbitration Association.  Either party may commence the arbitration.  If
     the parties are unable to agree upon an arbitrator, the arbitrator shall be
     appointed by the American Arbitration Association.  The parties agree that
     the substantially prevailing party in arbitration shall be entitled to
     recover its/their costs and reasonable attorneys' fees from the other
     party(ies).

6.   Bank and FCFG release Edwards, and Edwards releases Bank and FCFG from any
     claims they have or may have against one another for breach of the
     Settlement Agreement on or before the date of this Amendment, whether known
     or unknown.  By executing this Amendment, neither party admits or
     acknowledges that it has breached the Settlement Agreement.

7.   Each party shall pay one-half of the cost of the April 21, 1998 mediation
     and bear its own attorney's fees and other costs.

8.   Except as amended herein, the Settlement Agreement remains in full force
     and effect, including but not limited to the confidentiality provisions
     which shall apply to this Amendment.  If FCFG determines that it must file
     this Amended Settlement Agreement with the SEC, Edwards agrees that such
     filing will not breach the Settlement Agreement and that  FCFG need not
     seek Confidential Treatment of this Amended Settlement Agreement from the
     SEC.

                                        FIRST COMMUNITY BANK
   

Date:   May 11, 1998                    By   /s/ Ken F. Parsons
     --------------------                 ---------------------------------

                                        Its CEO
                                           --------------------------------

                                        FIRST COMMUNITY FINANCIAL GROUP

Date:   May 11, 1998                    By  /s/ Ken F. Parsons
     --------------------                 ---------------------------------

                                        Its CEO
                                           --------------------------------


Date:   May 6, 1998                         /s/ Michael D. Edwards
     --------------------               -----------------------------------
                                        MICHAEL D. EDWARDS

Date:   May 6, 1998                       /s/ Marieke G. Edwards
     --------------------               -----------------------------------
                                        MARIEKE  G. EDWARDS


2