First Capital Bancorp — Shareholder Meeting (May 2014)
39 slides from First Capital Bancorp's shareholder meeting presentation, May 23, 2014
Slide 1: Capital Bancorp Annual Shareholders Meeting, May 21, 2014
Exhibit 99.1 CAPITAL BANCORP ANNUAL SHAREHOLDERS MEETING MAY 21, 2014
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Readers are cautioned that this presentation contains forward-looking statements made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current knowledge, assumptions, and a
Slide 3: Economic Review
ECONOMIC REVIEW March’s unemployment rate was 6.7%; however, with more and more Americans dropping out of the work force, the Labor Force Participation rate was only 63.2% Jobs are being created, but too slowly for the labor market to reach pre-recession levels due to the lingering effects of the ho
Slide 4: Home prices predicted to continue to recover in 2014
Home prices are predicted to continue to recover in 2014, but at a slower, more steady pace The National Association of Realtors currently forecasts home prices will rise 4.2% over the next 12 months Net worth of U.S. households and nonprofit organizations is the highest on record, reflecting a surg
Slide 5: Architectural Billing Index and commercial real estate prices
The Architectural Billing Index, a leading indicator for future nonresidential construction activity, declined in the fourth quarter of 2013 and has been relatively flat in the first quarter of 2014 after enjoying a strong first nine months of 2013. Source: AIA Commercial real estate prices have lar
Slide 6: Household debt has slightly increased
Household debt has slightly increased, suggesting that after a long period of deleveraging, households are borrowing again Household debt service as a % of income is still near its lowest level in 30 years Evidence is building that the household risk aversion that persisted through the post-recessio
Slide 7: New Delinquent Balances by Loan Type
New Delinquent Balances by Loan Type Total Balance by Delinquency Status "ons binges nd frconee by eet ot Aan Newly Originated installment Loan Balances
Slide 8: Banking Industry
BANKING INDUSTRY Number of FDIC-Insured Banking Organizations 1997-2013, Nueber 15000 10,000 Tits and independent Banks 000 Cone-Bank Holding Companie Pi Muls.Bank Holding Companies tor cs Assets of FDIC-Insured Banking Organizations 1907-2013, Thrifts and independent Sanks (One-Bank Holding Compani
Slide 9: Quarterly Net Interest Margins, Annualized
Quarterly Net interest Margins, Annualized Net Loans and Leases to Deposits 2000-2013 (Domestic and Foreign) cet tg) 2004-2013 a jae A OB BE TE BN ON Oa OT BT A OD BD BT Sapa aa ara ee ee ‘Trends in FDIC-Insured Institutions’ Income & Expenses 2005 {2013 tua Net Operating Ravens” ‘pos 2006 0072008 «
Slide 10: Banking Industry: Why Are Bank Stocks Still Depressed?
BANKING INDUSTRY WHY ARE BANK STOCKS STILL DEPRESSED? HEADWINDS TAILWINDS Slow job recovery Continuing margin pressure Greater regulatory burden Higher capital requirements Fiscal concerns / DC dysfunction Capital is expensive and limited Still a buyer’s M&A market Higher barriers to entry Economy i
Slide 11: 2013 in Review
2013 IN REVIEW Net Income of $3.9 Million – the most profitable year in the Company’s history Loan growth, net of the allowance for loan losses, of $54.2 Million, or 14.70%, despite a highly competitive market An increase in the 2013 Net Interest Margin to 3.64%, as compared to 3.39% for 2012 An inc
Slide 12: 2013 in Review (Cont'd)
2013 IN REVIEW (Cont’d) Continued improvement in the Bank’s Efficiency Ratio – a 2013 and 2014 strategic initiative An employee turnover ratio of less than 5%—significantly outperforming industry standards Triggering a strategic initiative to complete the redemption of the Company’s remaining TARP-r
Slide 13: Driving Shareholder Value
DRIVING SHAREHOLDER VALUE FIVE MISSION-CRITICAL ELEMENTS Earnings Growth Asset Quality Capital Franchise Development
Slide 14: Earnings
EARNINGS -$ 8.0 MM -$ 6.0 MM -$ 4.0 MM -$ 2.0 MM $ 0.0 MM $ 2.0 MM $ 4.0 MM $ 6.0 MM 2008 2009 2010 2011 2012 2013 Net Income Net Income
Slide 15: Last Twelve Months Recurring Preprovision Net Revenue
LAST TWELVE MONTHS RECURRING PREPROVISION NET REVENUE
Slide 16: Net Interest Income
NET INTEREST INCOME Net interest income improved to $18.0 million for 2013, compared to $16.3 million for 2012, an increase of $1.7 million or 22.92%. Net Interest Income $0 MM $2 MM $4 MM $6 MM $8 MM $10 MM $12 MM $14 MM $16 MM $18 MM $20 MM 2008 2009 2010 2011 2012 2013 2014 Net Interest Income 2.
Slide 17: Non Interest Income
NON INTEREST INCOME Non interest income totaled $2.4 million at the end of 2013, compared to $2.0 million at the end of 2012, an increase of $420 thousand or 21.19%. Non Interest Income $0.0 MM $0.5 MM $1.0 MM $1.5 MM $2.0 MM $2.5 MM $3.0 MM 2008 2009 2010 2011 2012 2013 NonInterest Income
Slide 18: Non Interest Expense
NON INTEREST EXPENSE $0 MM $2 MM $4 MM $6 MM $8 MM $10 MM $12 MM $14 MM $16 MM $18 MM $20 MM 2008 2009 2010 2011 2012 2013 Non Interest Expense
Slide 19: Growth
GROWTH $564,266 $400 MM $420 MM $440 MM $460 MM $480 MM $500 MM $520 MM $540 MM $560 MM $580 MM 2008 2009 2010 2011 2012 2013 2014Assets Assets
Slide 20: Loan Growth
LOAN GROWTH $445,149 $300 MM $320 MM $340 MM $360 MM $380 MM $400 MM $420 MM $440 MM $460 MM 2008 2009 2010 2011 2012 2013 2014Loans Loans
Slide 21: 2008 Loan Portfolio
2008 LOAN PORTFOLIO
Slide 22: 2013 Loan Portfolio
2013 LOAN PORTFOLIO Consumer 1% Development & Other Land 10% RE Residential Construction 5%
Slide 23: Deposit Growth
DEPOSIT GROWTH $460,490 $300 MM $320 MM $340 MM $360 MM $380 MM $400 MM $420 MM $440 MM $460 MM $480 MM 2008 2009 2010 2011 2012 2013 2014 Deposits Deposits
Slide 24: Deposit Demand Account Growth
DEPOSIT DEMAND ACCOUNT GROWTH
Slide 25: 2008 Deposit Mix
2008 DEPOSIT MIX
Slide 26: 2013 Deposit Mix
2013 DEPOSIT MIX
Slide 27: Charge Offs v. Provisions
CHARGE OFFS v. PROVISIONS -$2 MM $0 MM $2 MM $4 MM $6 MM $8 MM $10 MM $12 MM $14 MM 2008 2009 2010 2011 2012 2013 Charge Offs Provision
Slide 28: Non Performing Assets
NON PERFORMING ASSETS NPAs & 90+ Days Past Due / Assets —NPAs & 90+ Days Past Due / Assets 8.00% 6.00% 4.00% — 2.00% 0.00% & SF Rs Ss oe oe id ss x
Slide 29: Capital Strategy
CAPITAL STRATEGY Our balance sheet management over the past year has been an important piece of the success of 2013 as we have been able to drive an improvement in deposit mix, push the net interest margin higher, and manage to increase capital levels despite a year of material loan growth. These ar
Slide 30: FCVA
FCVA $- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 FCVA
Slide 31: First Capital Bancorp, Inc.
First ‘Capital Bancorp, Inc
Slide 32: Slide 32
Slide 33: Slide 33
Slide 34: Outdoor Billboards: Let's Make It Work
OUTDOOR PE &) He RS, BILLBOARDS Ra) na LET’S MAKE IT WORK ‘First Capital Bank
Slide 35: Radio
RADIO Tees
Slide 36: Swift Creek Branch
SWIFT CREEK BRANCH Opening June 13, 2014 Open Monday-Friday 10-7, Saturdays 10-2 Staffed by Full-Service Bankers Promotion from within the First Capital Bank Team
Slide 37: Swift Creek Branch
SWIFT CREEK BRANCH
Slide 38: August 2014
August 2014 Four Wal-Mart locations Expanded Squirrels Partnership
Slide 39: First Capital Bancorp, Inc.
First Capital Bancorp, Inc.
First Capital Bancorp — Shareholder Meeting (May 2014) on 6ix