First Community Bankshares, Inc. · NASDAQ:FCBC
First Community Bankshares — First Community Bancshares — Investor Presentation (February 2011)
26 slides from First Community Bankshares's investor presentation, Feb 28, 2011
Slide 1: February 2011
NASDAQ: FCBC February 2011 www.fcbinc.com
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 assumption
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 mark
Slide 5: Investment Highlights
Investment Highlights Exceptional balance sheet profile Conservative credit culture; avoidance of “exotic”/subprime products Strong loan quality NPLs/Loans of 2.06% December 31, 2010 * NPAs/Assets of 1.50% December 31, 2010 * NCOs/Avg . Loans of 0.90% for 2010 Strong pre-tax, pre-provision core inco
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 differentiatin g FCB from other
Slide 7: Current Franchise Overview: Branch Map
Current Franchise Overview: Branch Map 68 locations across five states (Virginia, West Virginia, North Carolina, Tennessee and South Carolina ) Attractive mix of urban growth and stable suburban legacy markets Full service, offering financial partnership with our customers Strong growth from organic
Slide 8: Current Franchise Overview: Growth Markets
Current Franchise Overview: Growth Markets Winston -Salem, NC Mooresville , NC MSA population of 480,000 Bedroom community for Charlotte Unemployment declined to 8.7% Affluent Lake Norman community Large employers include Wake Forest University and Baptist Hospital , Novant Large employers include L
Slide 9: Current Franchise Overview: Market Demographics and Position
Current Franchise Overview: Market Demograp hics and Position Legacy Markets 38 branches Over $1.1 billion in deposits 12 of 15 counties with top 5 market rank Five year projected population change flat (+.11%) Five year projected average household income increase of 10.6% Growth Markets 21 branches
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 December 31, 2010 IRA IRA Jumbo Demand Time 4.8% 1.7% 12.8% Jumbo 17.2% Interest -Bearing Demand 16.3% Time 20.9% Savings 26.3% Account Balances as of December 31, 2010 Period End Accounts Balance W
Slide 11: Strategic Priorities
Strategic Priorities Substantial growth opportunity Targeted strategic bank acquisitions Fill in primary markets Attractive price levels FDIC-assisted transactions Possible larger transactions Primary and secondary markets Build presence in mid-Atlantic region Capitalize on in-market transactions En
Slide 12: FDIC Opportunities
FDIC Opportunities 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 su
Slide 13: FDIC Opportunities: Why will we be successful?
FDIC Opportunities 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: Diversified Portfolio with Strong Loan Quality
Loan Portfolio: Diversified Portfolio with Strong Loan Quality • Strong loan quality • NPLs / Net Loans at December 31, 2010, of 2.06% (Includes TDR’s) • Total delinquency of 2.62% • Geographically diversified portfolio across the region • Highly Granular: • Avg Comm Loan $170 thousand • Avg Retail
Slide 15: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio Legacy WV/ NC Eastern (In Thousands) SWVA SC VA TN Other Total Shopping Center $ 10,996 $ 4,762 $ 308 $ 3,887 $ - $ 19,953 Retail Stand Alone 45,448 32,530 12,548 8,381 889 99,796 Office -- Medical 7,251 7,279 305 874 260 15,969 Office -- Professional 28,099 26,203 3
Slide 16: Asset Quality Ratios
Asset Quality Ratios Non -Performing Loans / Total Loans Net Charge -Offs / Average Loans 1.97% 6.00% 2.00% FCBC Peer 5.16% 1.80% 5.00% 1.60% FCBC Peer 4.00% 3.63% 1.40% 1.20% 1.12% 3.00% 1.00% 0.90% 2.06% 0.80% 0.70% 2.00% 1.39% 1.49% 0.60% 0.45% 0.99% 0.40% 0.30% 1.00% 0.22% 0.19% 0.32% 0.35% 0.11
Slide 17: Summary of 4Q10 Earnings
Summar y of 4Q10 Earnings Three Months Ended Year Ended December 31, December 31, 2010 2009 Change 2010 2009 Change Net Interest Income $ 18,099 $ 18,962 -4.6% $ 73,857 $ 69,252 6.6% Provision for Loan Losses 3,686 7,282 -49.4% 14,757 15,801 -6.6% Net Interest Income (after provision) 14,413 11,680
Slide 18: Balance Sheet Summary
Balance Sheet Summary December 31, December 31, 2010 2009 Change Cash & Securities $ 596,890 $ 594,852 0.34% Total Loans 1,390,900 1,405,507 -1.04% Allowance for Loan Losses 26,482 24,277 9.08% Total Loans (net) 1,364,418 1,381,230 -1.22% Other 282,930 297,201 -4.80% Total Assets 2,244,238 2,273,283
Slide 19: Financial Performance Highlights: Efficiency, Cost of Funds, Net Interest Margin
Financial Performance Highlights: Efficiency , Cost of Funds, Net Interest Margin 69.74% 70% FCBC Peer 66.49% 65.58% 65% Efficiency 62.20% 62.20% 61.90% 60% 59.23% 59.21% 55% 51.30% 51.40% 50% Cost of Funds 2006 2007 2008 2009 2010 Net Interest Margin 3.46% 3.50% 4.50% FCBC Peer 3.14% 4.29% 3.25% FC
Slide 20: Investment Portfolio: Composition
Investment Portfolio: Composition Total investment portfolio is $484.70 million Total Investment Portfolio December 31, 2010 Single issue TRUPS include BAC, JPM, STI, WFC, and NTRS Pooled TRUPS adjusted book value of $1.51 million MBS - Non-Agency Equities $636 U.S. Gov't Agency Alt-A $9,832 $11,277
Slide 21: Why buy FCBC?
Why 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 core d
Slide 22: Why buy FCBC?
Why buy FCBC? 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 over 3.0% Positioned to emerge as one of the strongest players in the region and build one of the best franchises in t
Slide 23: Supplemental Information
Supplemental Information
Slide 24: Non-GAAP Reconciliation of Core Earnings
Non-GAAP Reconciliation of Core Earnings Appendix A 2006 2007 2008 2009 2010 Net income available to common shareholders $ 28,948 $ 29,632 $ 1,699 $ (40,856) $ 21,847 Securities gains (75) (411) (1,899) 11,673 (8,273) Other-than-temporary impairments - - 29,974 78,863 185 Branch sale gains (1,035) -
Slide 25: Non-accrual Loans by State
Non-accrual Loans by State Appendix B West North South Virginia Virginia Carolina Tennessee Carolina Other Total (In thousands) Construction -- commercial $ 23 $ - $ 262 $ - $ - $ - $ 285 Land development - - 50 - - - 50 Other land loans 321 - 363 - - - 684 Commercial & Industrial 3,492 38 264 131 -
Slide 26: Contact Information
Contact Information First Community Bancshares, Inc. NASDAQ: FCBC One Community Place Bluefield, VA 24605 For More Information Contact: David D. Brown Chief Financial Officer First Community Bancshares, Inc. (276) 326-9000
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