First Bancorp · NASDAQ:FBNC
First Bancorp — Merger or Acquisition (June 2009)
8 slides from First Bancorp's merger presentation, Jun 24, 2009
Slide 1: Investor Presentation: Assumption of Deposits and Assets of Cooperative Bank from the FDIC
Investor Presentation Assumption of Deposits and Assets of Cooperative Bank from the FDIC Effective June 19, 2009
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation contains statements that could be deemed forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and unc
Slide 3: Transaction Rationale
Transaction Rationale Unique opportunity to acquire substantially all of the assets and deposits of Cooperative Bank from the FDIC under a loss sharing arrangement Last sizable entry target into the coastal Wilmington MSA - 6th in Market Share Improves FBNC scale by adding up to 24 branch locations
Slide 4: Cooperative Bank Overview
Cooperative Bank Overview Assets - approximately $959 million in assets $830 million of loans under loss-share agreement $107 million of securities and cash $22 million of other assets (includes foreclosed real estate) Liabilities - approximately $862 million in liabilities $703 million in deposits
Slide 5: Transaction Structure
Transaction Structure 0% deposit premium Some core deposit premium intangible may be recorded after fair market value accounting applied $123 million discount on the assets Loss-sharing agreement with FDIC $0 First Loss Position for FBNC Loss-sharing with the FDIC will be immediate 80% FDIC / 20% FB
Slide 6: Initial Accounting Impact - Estimates
Initial Accounting Impact - Estimates Estimated one-time gain in Q2 2009 of approximately $50-$60 million pre-tax ($1.83 – $2.20 after-tax EPS effect) Excess of fair market value of acquired assets over assumed liabilities results in gain Assets acquired = $ 959 million Cash received from FDIC at cl
Slide 7: Discount Reconciliation – Preliminary Estimates
Discount Reconciliation – Preliminary Estimates The discount bid of $123 million can be allocated as follows: $61 million of loan losses to be absorbed by FBNC (out of total estimated losses of $307 million) Expected loan losses to be recorded as part of purchase accounting adjustments – no negative
Slide 8: Markets - Combined Branch Locations
Markets - Combined Branch Locations First Bancorp Former Cooperative Bankshares Source: MapPoint and SNL Financial. 8