First Community Bankshares, Inc. · NASDAQ:FCBC
First Community Bankshares — First Community Bancshares — Janney Montgomery Scott Bank and Thrift Conference (May 2010)
32 slides from First Community Bankshares's conference presentation, May 13, 2010
Slide 1: First Community Bancshares, Inc. Janney Bank and Thrift Conference
pe First Community Bancshares, Inc. NASDAQ: FCBC Janney Montgomery Scott Bank and Thrift Conference May 13, 2010
Slide 2: Forward-Looking Disclosures
368 First ; ; Communi Forward-Looking Disclosures Bancshares, Inc. 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 mater
Slide 3: First Community Bancshares Overview
First Community Bancshares Overview
Slide 4: Investment Highlights
CoE ity Investment Highlights Bancshares, Inc. = A $2.3 billion VA, WV, NC and TN branch franchise 135 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 consoli
Slide 5: Investment Highlights
3 First Communi Investment Highlights Bancshares, Inc. = Exceptional balance sheet profile = Strong loan quality — NPLs/Loans of 1.48% versus peers of 4.02% at March 31, 2010 * — NPAs/Assets of 1.11% versus peers of 4.21% at March 31, 2010 * — NCOs/Avg Loans of 1.00% versus peers of 1.11% for Q1 201
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 > 19 years; total insider ownership of 7% Years in Banking Years with FCB John M. Mendez 25 25 President and CEO Robert L. Buzzo 37 37 Presiden
Slide 7: Current Franchise Overview: Branch Map
Current Franchise Overview: Branch Map Bancshares, Inc. = 71 locations across five-states (Virginia, West Virginia, North Carolina, Legacy | Tennessee and South Carolina ) Markets a = Attractive urban and suburban markets in the Carolinas, Virginia, West Virginia, and Tennessee array of services cre
Slide 8: Current Franchise Overview: Market Demographics and Position
Current Franchise Overview: Communi Market Demographics and Position Bancshares, Inc. Cladkabog, 8 Logan, WY 4 4 8 MMSA/County Totals ‘Weighted Average: MSA/Counry ‘Growth Markets Staervlle-Moouerill, NC 1 Jolson Cay, TN Richmond, VA 1,229,109 ‘Waawtor- Salem, NC 473203, Hichosy-Lenoir Morganton, NC
Slide 9: Key Franchise Differentiator: Retail Franchise with Core, Low Cost Deposits
Key Franchise Differentiator: CHET iy Retail Franchise with Core, Low Cost Deposits Bancshares; Inc. Deposit Composition as of March 31, 2010 Account Balances as of March 31, 2010 Period End Accounts Balance WAR Demand 34,810 $206,925 0.00% Interest-Beating Demand (35,665 257,888 0.40% Savings 25,06
Slide 10: Key Franchise Differentiator: Growth in Non-Interest Income
Key Franchise Differentiator: Cerri Growth in Non-Interest Income = Since 2004, the Company has grown non-interest income sources to reduce interest rate cycle exposure — Increased wealth management line of business — Grown insurance line of business — Re-engineered retail product set and sales appr
Slide 11: Reg E Effect
Communi Reg E Effect min a = Third overdraft privilege opt-in campaign began May 3, 2010 = Response has been overwhelmingly positive Overdraft Privilege Income At Risk To Reg E 4,000,000 $3,500,000 $3,000,000 $2,500,000 2,000,000 31,500,000 31,000,000 $500,000 so — oe 0 3/29 4/3 4/8 4/3 4/18 4/23 4/
Slide 12: Strategic Direction
Strategic Direction 36 Fire Com muni Inc. Balanced Growth and Profitability Strategy Alternative Solution vs. Large | Banks Position as Regional Consolidator Pursue Growth Markets around Key MSA’s Develop Legacy Markets/Earnings Driver Diversify Revenues into Associated Financial Service Lines (Weal
Slide 13: Strategic Direction
Strategic Direction « Transformational growth to $5 billion — Targeted strategic bank acquisitions + Fillin primary markets + Attractive price levels — FDIC-assisted transactions + Possible larger transactions + Primary and secondary markets = Continue diversification of revenues — Acquisition of in
Slide 14: M&A Opportunity
M&A Opportunity: FCB is a strong partner FCB provides exit strategy for institutions under pressure Look to augment existing franchise Opportunistic Assisted transactions Strong currency Predominately stock Growing opportunity throughout credit cycle Filters: Like minded community bank organizations
Slide 15: Recent Acquisitions: Bank & Thrift Transactions
Recent Acquisitions Community Bank & Thrift Transactions Bancshares, Inc. Coddle Creek Financial Corp Acquisition TriStone Community Bank Acquisition = Expanded our franchise into the dynamic Iredell and = Expands our franchise in the Winston-Salem market ‘Mecklenburg County Markets and retain stron
Slide 16: Recent Acquisitions: Insurance Agency Transactions
Recent Acquisitions: Commun Bancshares, Insurance Agency Transactions Inc. = Acquired GreenPoint Insurance (High Point, NC) in September 2007 — Full service insurance agency headquartered in High Point, NC — Provider of commercial and personal insurance lines, employee benefits and life and health i
Slide 17: FDIC Opportunities
38 First ws Community FDIC Opportunities Bancshares, Inc. " The primary focus of M&A activity today = Objectives — One or more transactions within our primary or secondary markets — Lead transformational growth — Expect material accretion to TBV and EPS = Planning and Process — Developed integration
Slide 18: FDIC Opportunities
FDIC Opportunities = Why will we be successful? Best partner Well-suited geographically Sparse and thinning competition History as an integrator Converted 25 deals in 26 years Two healthy bank deals in the last 20 months High number of emerging opportunities
Slide 19: Banks under $1.15 billion with Texas Ratios greater than 100
= Banks under $1.15 billion with Texas Ratios greater than 100 or under regulatory directive = Represents $9.99 billion in opportunities
Slide 20: Loan Portfolio: Diversified Portfolio with Strong Loan Quality
Loan Portfolio: Diversified Portfolio with Community Strong Loan Quality Strong loan quality — NPLs / Net Loans at March 31, 2010 of 1.48% — Total delinquency of 2.35% Geographically diversified portfolio across the region Highly Granular: — Majority of loans in $30,000 to $300,000 range Top 10 loan
Slide 21: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio Owner-Occupied ‘Non-Owner Occupied Legacy NC Eastern Eastern (lu Thonsands) Wwv/sWVA __sC VA IN _ Other __Toral VA TN Other __ Total Real Estite " = = ¢25 ge ¢: Fe $ 8479 Coastaxstion = E 2 - 2 z Developed Tisct - : : - - . Res Ld Units 4308 74 19612711 - 3.460 24 63
Slide 22: Asset Quality Ratios
Asset Quality Ratios Community Non-Performing Loans / Total Loans Net Charge-Offs / Average Loans ae in 4. soe BFCEC aPee aii ey weal lt momo 2008 es Reserves / Non-Pesforming Loans Reserves / Total Loans ms f WFCEC Peer ‘GRNB, HMPR, NBBC, PEBIC PFET, SCBT, SCMP, SMM, STEL, TOWN, UBSH, VCBI, YAVY) 2
Slide 23: Summary of 1Q10 Earnings
ummary of 1Q10 Earnings First Quarter 2010 2009 __Change Net Interest Income § 18619 § 16433 1L7a% 65 Provision for Loan Losses Net Interest Income (after provision) Net Impairment Losses Other Income Total Noniaterest Income Selasies and employee benefits EDIC costs Othec Nonintesest Expense Total
Slide 24: Balance Sheet Summary
Balance Sheet Summary 38 First Com March 31, December 31, 2010 2009 Cash & Seensities § 619,158 $ 5948 Total Loans 1,392,368 1,405,507 Allowance for Loan Losses 21,956 217: Total Loans (net) 1,370,412 1,383,782 Other 290,964 296,244 Total Assets 2,280,834 2,274,878 Noninterest Beating Depo: 810 Inte
Slide 25: Financial Performance Highlights: Efficiency, Cost of Funds, Net Interest Margin
Xe First . Financial Performance Highlights: Community Efficiency, Cost of Funds, Net Interest Margin Bancshares, Inc. Efficiency Net Interest Margin MFCBC Peer MECBC mPeer qo 203 quo ‘eee: inchae ply tad ets between $1 and $4 hlion in NC SC, East TN, VA, and WV (BNCN, CBN, CFNE, CHCO, CRFN, CWBS, E
Slide 26: Investment Portfolio: Composition
3s First . . Community Investment Portfolio: Composition Bancshares, Inc. = Total investment portfolio is $531.45 million MBS - Non-Agency. Prime $4,839 US. Gov't Agency $80,274 Muni's 140,962 Single-issue TRUPS ‘MBS- Agency $249,948 EDIC-_backes $25,317
Slide 27: Why buy FCBC?
CoE Why buy FCBC? Ree ina = A $2.3 billion VA, WV, NC and TN branch franchise — Robust market share in legacy markets and attractive expansion into growth markets = Positioned as regional consolidator — Looking to grow via strategic and opportunistic FDIC-assisted deals " True retail franchise gener
Slide 28: Why buy FCBC?
Commun Why buy FCBC? ll Strong pre-tax, pre-provision core income Resilient net interest margin of 4.02% for Q1 2010 and 3.74% for 2009 Strong non-margin, fee-based revenue diversification Strong dividend yield at over 3% Positioned to emerge as one of the strongest players in the region and build o
Slide 29: Supplemental Information
Supplemental Information
Slide 30: Non-GAAP Reconciliation of Core Earnings
Non-GAAP Reconciliation of Core Earnings Net income available to common shareholders (as-reported) Securities gains Other-than-tenporary impaiments Branch sale gains quisition gains Amortization of intangibles Prepayment penalties Merger-selated expenses Other non-core items Taxeffect Core net incom
Slide 31: Nonaccrual Loans by State
Nonaccrual Loans by State Virginia West Virginia North Carolina Tennessee South Carolina Other Total Appendix B Commercial, Financial, Agricultural RealEstate RealEstate Real Estate & Other Construction Commercial Residential __ Consumer Total (i thousands) $ 52,019 $ 1,374,099 § 345,197 $ 656,117 $
Slide 32: Contact Information
Contact Information Bancshares, Inc. cas First First Community Bancshares, Inc. Com Member NYSE: FCBC munity ——- Bancshares; Inc. 0 For More Information Contact: David D. Brown Chief Financial Officer First Community Bancshares, Inc. Your First Financial Resource (276) 326-9000 32
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