First Community Bankshares, Inc. · NASDAQ:FCBC
First Community Bankshares — First Community Bancshares — Investor Presentation (June 2011)
28 slides from First Community Bankshares's investor presentation, Jun 21, 2011
Slide 1: First Community Bancshares, Inc. – June 2011
Slide 2: Forward-Looking Disclosures
Forward-Looking Disclosures ‘This presentation may include forward-looking statements. ‘These forward- looking statements are based on current expectations that involve risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptio
Slide 3: First Community Bancshares Overview
First Community Bancshares Overview
Slide 4: Investment Highlights
Investment Highlights = A $2.2 billion VA, WV, NC and TN branch franchise — 138 years of continuous operation — Strong history of core earnings and dividend payments — Robust market share in legacy markets and attractive expansion into growth markets — Positioned as regional consolidator — Legacy ma
Slide 5: Investment Highlights
Investment Highlights = Exceptional balance sheet profile = Conservative credit culture; avoidance of “exotic” /subprime products = Strong loan quality — NPLs/Loans of 1.94% March 31, 2011 * — NPAs/Assets of 1.44% March 31, 2011* — NCOs/ Avg, Loans of 0.47% for 2011 YTD = Strong pre-tax, pre-provisi
Slide 6: FCB Company Culture
FCB Company Culture =Foundation in consistent performance, return to shareholders, operational efficiency and solid credit culture *Culture a key factor in our strength, our customer appeal, and the perception among merger partners as a preferred acquirer. "Key elements differentiating FCB from othe
Slide 7: Current Franchise Overview: Branch Map
Current Franchise Overview: Branch Map * 67 locations across four states (Virginia, Legacy West Virginia, North Carolina, and Markets pes Tennessee) = or = Attractive mix of urban growth and yer stable suburban legacy markets = Full service, offering financial partnership with our customers * Strong
Slide 8: Current Franchise Overview: Growth Markets
Current Franchise Overview: Growth Markets Winston-Salem, NC © MSA population of 480,000 © Unemployment at 9.1% Lange employers include Wake Forest University and Baptist Hospital, Novant Health, Rj Reynokls, and I lanes Johnson City, Tennessee * Recently installed local management team , 42 years c
Slide 9: Current Franchise Overview: Market Demographics and Position
Current Franchise Overview: Market Demogr: ics and Position "Legacy Markets — 37 branches — Over $1.1 billion in deposits — 12 of 15 counties with top 5 market rank — Five year projected population change flat (+0.12%) ~ Five year projected average household income increase of 10.0% "Growth Markets
Slide 10: Key Franchise Differentiator: Retail Franchise with Core, Low Cost Deposits
Key Franchise Differentiator: Retail Franchise with Core, Low Cost Deposits Deposit Composition as of March 31, 2011 [Account Balances as of March 31, 2011 Ra Period End RA jumbo Accounts Balance WAR. Time ‘ete Demand 0.00% Interest Beading Demand 0.30% Savings 420,481 0.32% Total DDA 929,559. 0.24%
Slide 11: Strategic Priorities
Strategic Priorities * Substantial growth opportunity * Continue diversification of revenues = ‘Targeted strategic bank acquisitions Acquisition of insurance agencies © Fill in primary markets * Populate primary markets = Attractive price levels * Achieve greater integration with * FDIC. bank servic
Slide 12: FDIC Opportunities
FDIC Opportunitie = Objectives — One or more transactions within our primary or secondary markets — Lead growth / improve market presence — Accretion to EPS = Planning and Process — Developed integration plan using internal and external resources — Participated in multiple due diligence sessions and
Slide 13: Why will we be successful?
= Why will we be successful? — Strong partner, appealing philosophy & culture — Well-suited geographically — History as an integrator — Completed 25 deals in 27 years — Two healthy bank transactions in the last 25 months - High number of emerging opportunities
Slide 14: Loan Portfolio with Strong Loan Quality
Loan Portfolic folio with Strong Loan Quality Loan Composition at March 31, 2011 + Strong loan quality + NPLs / Net Loans at March 31, 2011, of 1.94% (Includes TDR’s) + Total delinquency of 2.23% + Geographically diversified portfolio across the region + Highly Granular: + Avg Comm Loan $173 thousan
Slide 15: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio NC Eastern (de Tons) sc vA ‘Shopping Center s s 30s Retail Stand Alone 13,903, Office ~ Medial 208 Ofie Profesional 31133 Industoal 8.170 Healthcare Horel 10215 4.901 Church 6784 526 thee 15,557 2.008 Toul T3555 Fes Fas) (@scades mali: fanaly) = The Company holds 1,2
Slide 16: Non-Performing Loans / Net Charge-Offs / Reserves
Non-Performing Loans / Total Loans Net Charge-Offs / Average Loans - aril i | | = if vil J = — — ~ on = = Reserves / Non-Performing Loans Reserves: 7 ‘Total Loans EE
Slide 17: Summary of 1Q 2011 Earnings
Summary of 1Q 2011 Earnin Antorest Incoene TSS 18607 Provision for Loan Losses 1oi2 3.665 Net Interest Income (after provision) 1606314954 [Net Impairment Losses ox . Other tacome 10926 5578. ‘Total Nonintewst Income 948878 Sulsics and employee benefits 9197960, UDIC costs ws 701 Other Nonintcrest E
Slide 18: Balance Sheet Summary
Balance Sheet Summary March 31, December 31, 2011 2010 Change Cash & Securities $ 610986 S$ 596,890 2.36% ‘Total Loans 1,378,209 1,390,900 -0.91% Allowance for Loan Losses 26,482 26.482 0.00% otal Loans (net) 1,351,817 1,364,418 192% Other 278,207 282.930 ‘Total Assets 2,240,980 2,244,238 0.15% Noni
Slide 19: Financial Performance Highlights: Efficiency, Cost of Funds, Net Interest Margin
Financial Performance Highlights: Efficiency, Cost of Funds, Net Interest Margin sco 7 heer Efficiency | o wm wm a mmm Cost of Funds Net Interest Margin ae al SPORC « Peer Carpe Og he Mt
Slide 20: MBS Non-Agency
MBS-Now-Agency Alea $1220 MIBS- Agency — $1599 Pooled TRUPS— $461 0
Slide 21: $18.921 million offering closed May 20, 2011
= $18.921 million offering closed May 20, 2011 = Non-cumulative convertible preferred = 6% dividend rate = $1,000 liquidation value convertible into 69 shares of common stock — total of 1.31 million shares = Friends and family = Callable after three years = Mandatory convert after five years = Incre
Slide 22: Comparable peer group valuation
= Using a comparable peer group of high-performing banks in the southeast, FCBC is an attractively priced name = Peer group consists of $2 - $5 billion banks in SE with TCE > 6% and NPA’s <5% Paice? Leverage TCE/ NPA's/ Reserves/ 2011 Est 2012 Est) Ratio TA _ROAA_ROAE NIM Efficiency Assets Loans EPS
Slide 23: Why buy FCBC
y buy FCBC = A $2.24 billion VA, WV, NC and TN branch franchise — Robust market share in legacy markets and attractive expansion into growth markets = Positioned as regional consolidator — Growth plan via strategic and opportunistic FDIC-assisted deals = True retail franchise generating low cost cor
Slide 24: Strong pre-tax, pre-provision core income
= Strong pre-tax, pre-provision core income = Resilient net interest margin of 3.90% for 2010 = Strong non-margin, fee-based revenue diversification = Strong dividend yield at 2.8% = Positioned to emerge as one of the strongest players in the region and build one of the best franchises in the Mid- A
Slide 25: Supplemental Information
Supplemental Information
Slide 26: Non-GAAP Reconciliation of Core Earnings
Non-GAAP Reconciliation of Core Earnings 207208200) Qa Netinome able to common shareholders: ‘$ 29632 $ 1,699 $(W856) S$ 2KIT $5751 ‘Scouritcs gains GIN) (L899) 673273) (1.836) Othee-than-temporiry inpaiemenss DITA T8863 185, 37 Acquistion gains 493) Amoriziion of ages Pe ee eT ee) Prepayment peas u
Slide 27: Non-accrual Loans by State
Non-accrual Loans by State Voisin _Viginia _ _Caroina__Teumesore_ _Odnes__Teta. (Avaiasont) Cominco commenisd $F s ws -4 8 and develope : . : : thelial ou 10 : x 3 . soo Comal dita “ oo ssn 2 : aan Muito see . : 124 : nes ‘Now fmm mie sea os or 202 1a 07 “0 soa i Toul air Tas ae pe
Slide 28: First Community Bancshares, Inc. contact
a . i Coemialy Bencsbance Inc. Zs First , One Commi Hc Com m U nity Bluefield, VA 24605 Bancshares, Inc. For More Information Contact: David D. Brown Chief Financial Officer First Community Bancshares, Inc. (276) 326-9000
First Community Bancshares — Investor Presentation (June 2011) on 6ix