First Community Bankshares, Inc. · NASDAQ:FCBC
First Community Bankshares — First Community Bancshares — Investor Presentation (November 2010)
26 slides from First Community Bankshares's investor presentation, Nov 10, 2010
Slide 1: First Community Bancshares, Inc. November 2010
Mw .. Zo First , Community Bancshares, Inc. NASDAQ: FCBC November 2010
Slide 2: Forward-Looking Disclosures
Forward-Looking Disclosures elon Am 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 ass
Slide 3: First Community Bancshares Overview
First Community Bancshares Overview
Slide 4: Investment Highlights
Cahirs Community Investment Highlights Bancshares, Inc. = A $2.3 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
Slide 5: Investment Highlights
Investment Highlights Bancshares, = Exceptional balance sheet profile = Strong loan quality — NPLs/Loans of 1.81% September 30, 2010 * — NPAs/Assets of 1.34% September 30, 2010 * — NCOs/Avg Loans of 0.68% Q3 2010 = Strong pre-tax, pre-provision core income = Resilient net interest margin of 3.87% fo
Slide 6: Experienced Executive Management Team
Experienced Executive Management Team Strong culture of management and employee ownership — Established and experienced management team with average tenure greater than 17 years; total insider ownership of 7% Years in Banking Years with FCB John M. Mendez, 55 26 26 President and CEO Robert L. Buzzo,
Slide 7: Current Franchise Overview: Branch Map
First Current Franchise Overview: Branch Map Bancshares, Inc. 68 locations across five-states (Virginia, West Virginia, North Carolina, vegaayi k Tennessee and South Carolina ) Markets Attractive urban and suburban markets in the Carolinas, Virginia, West Virginia, and Tennessee Full array of servic
Slide 8: Current Franchise Overview: Growth Markets
Current Franchise Overview: Growth Markets Winston-Salem, NC = MSA population of 480,000 = Unemployment declined to 8.7% = Large employers include Wake Forest University and Baptist Hospital, Novant Health, RJ Reynolds, and Hanes Johnson City, Tennessee = Recently installed local management team = M
Slide 9: Current Franchise Overview: Market Demographics and Position
Current Franchise Overview: Community Market Demographics and Position Bancshares, 1 4 1 4 9 2 4 1 3 2 2 1 9 2 Dickenson, VA 5 1 Monzoe, WV 3 1 Webses, 1 2 1 Swamers, WU 3 1 Wise, VA 10 1 ‘MMSA/County Totals Eg Weighted Average: MSA/Counry Gaossth Markets ‘Winston Sudem, NC 089 Chadote Grsronia-Cons
Slide 10: Key Franchise Differentiator: Retail Franchise with Core, Low Cost Deposits
Key Franchise Differentiator: Coty Retail Franchise with Core, Low Cost Deposits Bancshares; Deposit Composition as of September 30, 2010 IRAJumka 1% Deeand Account Balances as of September 30, 2010 Period End Accounts Balance WAR. Demand 33,013 $216,167 0.00% Intesest-Beasing Demand 36,858 270,927
Slide 11: Strategic Direction
$s First . er Community Strategic Direction Bancshares, Inc. * Substantial growth opportunity * Continue diversification of * Targeted strategic bank acquisitions revenues + Fillin primary markets * Acquisition of insurance agencies * Attractive price levels + Populate primary markets + FDIC-assiste
Slide 12: FDIC Opportunities
Se First ‘ ws Community FDIC Opportunities Bancshares, Inc. = 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 — Participa
Slide 13: FDIC Opportunities: Why will we be successful?
FDIC Opportunities Bancshares, = Why will we be successful? — Strong partner — 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: Diversified Portfolio with Strong Loan Quality
Loan Portfolio: Diversified Portfolio with Community Strong Loan Quality Strong loan quality — NPLs / Net Loans at September 30, 2010, of 1.81% (Includes TDR’s) — Total delinquency of 1.76% Geographically diversified portfolio across the region Highly Granular: — Avg Comm Loan $171 thousand — Avg Re
Slide 15: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio eee ine, Legacy v/ NC Eastern (is Thousands) SWVA sc VA IN Other Total Shopping Center $ $4789 § 313 3,548 $ Retail Stand Alone 33,940 14,585 6,573 Office -- Medical 7,161 Sil 753 Office — Professional 27,995 30,970 4,202 Tndustsial 6,297 7,801 3,329 Healthcare - - -
Slide 16: Asset Quality Ratios
Asset Quality Ratios Community Non-Performing Loans / Total Loans Net Charge-Offs / Average Loans | MECEC mPeer 210s 20720082009 qu Qui Qsu0 Reserves / Non-Performing Loans MFCBC m Peer 200s 2007 20s mt Grn suo ‘Pees include publi aed banks with atcets between $1 and $4 hilion in NC SC, Eas ‘HAPR, N
Slide 17: Summary of 3Q10 Earnings
Summary of 3Q10 Earnings eee ine, Three Months Ended Nine Months Ended September 30, September 30, 2010 2009 Chan; 2010 2009 _ Change Net Interest Income § 19597 § 6.1% $ 50,290 109% Provision for Loan Losses 3810 8519 Net Intecest Income (after provision) 14.787 4771 ‘Net Impaisment Losses . -100.0
Slide 18: Balance Sheet Summary
Balance Sheet Summary September 30, December 31, 2010 Cash & Secusities 618282 § Total Loans 1,401,637 Allowance for Loan Losses ‘Total Loans (net) 1375217 Other 303,926 Toral Assets 2,297,428 Noniaterest Bearing Deposit 216,167 Interest Beating Deposits 1,441,056 Total Deposits Shost-term Bossowing
Slide 19: Financial Performance Highlights: Efficiency, Cost of Funds, Net Interest Margin
Financial Performance Highlights: oars unity Efficiency, Cost of Funds, Net Interest Margin a Efficiency 70% 209 Quo 210310 Net Interest Margin asm MECBC mPeer sass |G sa —_ ie sae eT or ssa 1” “i sases 1 oO BoO8 ay soos Singh a 200 0720052 QLID QUID Qsi0 amos 2007 m0 209 QUID Quo Qs ‘Peer ila ELPR
Slide 20: Investment Portfolio: Composition
Investment Portfolio: Composition = Total investment portfolio is $486.52 million MBS- Non-Agency_ ‘MBS- Agency. $228,012 US. Gov'tAgency $10,038. yfuni's $163,711 Alta, 311,051 ‘Single-issue TRUPS Single ieowe TRUPS include BAC, JPM, STI, WFC, nd NIRS Pooled TRUPS adjusted book value of $1.51 milli
Slide 21: Why buy FCBC?
Cahirs Immun Why buy FCBC? Ce = A $2.30 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 gene
Slide 22: Why buy FCBC?
First. Communi Why buy FCBC? oe inc. = Strong pre-tax, pre-provision core income = Resilient net interest margin of 3.94% for 2010 YTD = Strong non-margin, fee-based revenue diversification = Strong dividend yield at over 2.8% = Positioned to emerge as one of the strongest players in the region and
Slide 23: Supplemental Information
Supplemental Information
Slide 24: Non-GAAP Reconciliation of Core Earnings
Non-GAAP Reconciliation of Core Earnings Appendix A 2008 2006 2007 2008 2009 __Q12010_Q22010 _Q32010 Net income available to common shareholders $ 26303 $ 28948 $ 29632 $ 1,699 5431 § 6,553 Secnsities gains (753) 75) 411) (1,899) 11,673 (1,204) (Other-than-temporary impaicments - - - 29974 78,863 -
Slide 25: Nonaccrual Loans by State
Nonaccrual Loans by State Communi Commercial, Financial, Agricultural RealEstate RealEstate Real Estate & Other __ Construction Commercial _Residential_ _ Consumer Total (dn thousands) Virginia $ 73 § 626 § 41 876 § 18 § 2,024 West Virginia 33 - 1,325 31 2,339 North Carolina Past 1,195 4,518 29 10,6
Slide 26: Contact Information
. Comm Contact Information Bancshares, coe Fi Irst , First Community Bancshares, Inc. Com m u nity NASDAQ: FCBC One Community Place B. a ncsh. a res, In Cc. Bluefield, VA 24605 For More Information Contact: David D. Brown Chief Financial Officer First Community Bancshares, Inc. Your First Financial
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