First Community Bankshares, Inc. · NASDAQ:FCBC
First Community Bankshares — First Community Bancshares — KBW Community Bank Investor Conference 2011
27 slides from First Community Bankshares's conference presentation, Aug 2, 2011
Slide 1: KBW Community Bank Investor Conference
KBW Community Bank Investor Conference August 2‐ 3, 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 assumpt
Slide 3: First Community Bancshares Overview
First Community Bancshares Overview 3
Slide 4: Overview
Overview A $2.2 billion VA, WV, NC and TN branch franchise -Nasdaq Global Select -Russell 3000 $892 million Wealth Management Division -$451 million Trust Operation -$441 million RIA (Investment Planning Consultants) Four-state franchise with solid market share in legacy markets True retail franchis
Slide 5: Investment Highlights
Investment Highlights Exceptional balance sheet profile/Conservative Credit Culture/Disciplined Underwriting Strong asset quality NPL's/Loans 2.18% NPA's/Assets 1.61% Net interest margin of 3.83% - Q2 2011 and 3.89% - H1 2011 Strong non-margin, fee-based revenue diversification 25% of revenues from
Slide 6: Current Franchise: Branch Map
Current Franchise: Branch Map 64 locations in WV, VA, NC, TN Legacy Markets Mix of urban growth and stable legacy markets Growth targets in NC Piedmont/Triad & Richmond VA Possible additions in East TN and WV Deposit breakout: - West Virginia $922 million - Virginia $290 million - North Carolina $30
Slide 7: Current Franchise: Growth Markets
Current Franchise : Growth Markets Mooresville & Richmond Winston Lake Norman Johnson City Deposits $ 80 million $111 million $102 million $60 million MSA 1.2 million .48 million .7 million .51 million Population Key Altria RJ Reynolds Lowes Eastman Employers Dominion Hanes Brands Ingersoll Rand Epi
Slide 8: Current Franchise Overview: Market Demographics and Position
Current Franchise Overview: Market Demographics and Position Legacy Markets Growth Markets Number of Branches 36 18 Total Deposits $1.1 billion $450 million Market Ranks #1 or #2 in six markets NM Five Year Projected Flat 8.58% Population Change Five Year Projected Avg. 10.0% 13.4% Household Income
Slide 9: Key Franchise Differentiator: Retail Franchise with Core, Low Cost Deposits
Key Franchise Differentiator: Retail Franchise with Core, Low Cost Deposits Deposit Composition June 30, 2011 Account Balances as of June 30, 2011 Period End Accounts Balance W.A.R. Time Demand 43.2% 31.1% Demand 32,986 $219,488 0.00% Interest-Bearing Demand 38,331 271,622 0.13% Savings 24,804 405,4
Slide 10: Strategic Priorities
Strategic Priorities Substantial growth opportunity Continue diversification of revenues Targeted strategic bank acquisitions Acquisition of small insurance agencies Fill in primary markets Populate primary markets Attractive price levels Achieve greater integration with FDIC-assisted transactions b
Slide 11: Strategic Update
Strategic Update Raised $19 million growth Capital Converted to Virginia state-chartered, Federal Reserve member bank Re-aligned GreenPoint Insurance Effected significant “cost saves” 11
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 27 months – High number of emerging opportunities 13
Slide 14: Loan Portfolio: Diversified Portfolio with Strong Loan Quality
Loan Portfolio: Diversified Portfolio with Strong Loan Quality Loan Composition at June 30, 2011 • Strong loan quality • NPLs / Loans at June 30, 2011, Consumer Construction - Land Loans commercial Development of 2.18% (Includes TDR’s) 4.8% 2.0% 0.3% Other Land • Geographically diversified portfolio
Slide 15: Asset Quality Ratios
Asset Quality Ratios Non -Performing Loans / Total Loans Net Charge -Offs / Average Loans 6.00% 1.97% 5.23% 2.00% FCBC Peer 4.87% 5.00% 4.53% 1.80% 1.60% FCBC Peer 1.49% 4.00% 3.63% 1.40% 1.20% 1.12% 1.10% 3.00% 1.00% 0.90% 0.90% 2.18% 2.06% 1.94% 0.80% 0.70% 2.00% 1.39% 1.49% 0.60% 0.45% 0.47% 0.99
Slide 16: Summary of 2Q 2011 Earnings
Summary of 2Q 2011 Earnings Three Months Ended Six Months Ended June 30, June 30, 2011 2010 Change 2011 2010 Change Net Interest Income $ 17,754 $ 18,542 -4.2% $ 36,029 $ 37,161 -3.0% Provision for Loan Losses 3,079 3,596 -14.4% 4,691 7,261 -35.4% Net Interest Income (after provision) 14,675 14,946
Slide 17: Balance Sheet Summary
Balance Sheet Summary June 30, December 31, 2011 2010 Change Cash & Securities $ 584,701 $ 596,890 -2.04% Total Loans 1,374,864 1,390,900 -1.15% Allowance for Loan Losses 26,482 26,482 0.00% Total Loans (net) 1,348,382 1,364,418 -1.18% Other 273,317 282,930 -3.40% Total Assets 2,206,400 2,244,238 -1
Slide 18: Financial Performance Highlights: Efficiency, Cost of Funds, Net Interest Margin
Financial Performance Highlights: Efficiency, Cost of Funds, Net Interest Margin 75% 72.92% FCBC 72.23% Peer 70% 66.49% Efficiency 65.58% 65.88% 65% 62.20% 61.90% 62.27% 59.23% 59.21% 59.03% 60% 55% 51.40% 50% Cost of Funds 2007 2008 2009 2010 Q1 11 Q2 11 Net Interest Margin 3.46% 3.50% 4.25% FCBC P
Slide 19: Recent Preferred Capital Offering
Recent Preferred Capital Offering $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 afte
Slide 20: Attractive Valuations
Attractive Valuations 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% Price/ Price/ Leverage TCE/ NPA's/ Reserves/ 2011 Est 2012 Est Ratio TA ROAA ROAE NIM Eff
Slide 21: Why buy FCBC?
Why buy FCBC? A $2.21 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 3.89% for 1H 2011 Strong non-margin, fee-based revenue diversification Strong dividend yield at 3.2% Positioned to emerge as one of the strongest players in the region and build one of the best franchises in the
Slide 23: Supplemental Information
Supplemental Information 23
Slide 24: Non-GAAP Reconciliation of Core Earnings
Non -GAAP Reconciliation of Core Earnings Appendix A 2007 2008 2009 2010 Q1 11 Q2 11 Net income available to common shareholders $ 29,632 $ 1,699 $ (40,856) $ 21,847 $ 5,751 $ 5,597 Securities gains (411) (1,899) 11,673 (8,273) (1,836) (3,224) Other-than-temporary impairments - 29,974 78,863 185 527
Slide 25: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio Appendix B Legacy WV/ NC Eastern (In Thousands) SWVA SC VA TN Other Total Shopping Center $ 7,951 $ 8,043 $ 316 $ 3,432 $ - $ 19,742 Retail Stand Alone 40,743 24,868 13,567 3,786 2,393 85,357 Office -- Medical 5,846 9,873 318 770 - 16,807 Office -- Professional 23,93
Slide 26: Non-accrual Loans by State
Non -accrual Loans by State Appendix C West North Virginia Virginia Carolina Tennessee Other Total (In thousands) Commercial & Industrial $ 51 $ 618 $ 3,563 $ 288 $ - $ 4,520 Real Estate - Construction 420 888 1,246 - - 2,554 Real Estate - Commercial 226 3,864 3,354 403 - 7,847 Real Estate - Residen
Slide 27: 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 27
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