First Community Bankshares, Inc. · NASDAQ:FCBC
First Community Bankshares — First Community Bancshares — Investor Presentation (March 2010)
32 slides from First Community Bankshares's investor presentation, Mar 10, 2010
Slide 1: First Community Bancshares, Inc. March 2010
bi First Communit Bancshares, Inc. NASDAQ: FCBC March 2010
Slide 2: Forward-Looking Disclosures
Rerirst . Community Forward-Looking Disclosures Bancshares, Inc. This may include forward-looki ‘These forward- looking statements are based on current expectations that involve risks, uncertainties and assumptions. Should one or more of these tisks or uncertainties materialize or should underlying
Slide 3: First Community Bancshares Overview
Berit Community Bancshares, Inc. First Community Bancshares Overview
Slide 4: Investment Highlights
Rerirst . Community Investment Highlights Bancshares, Inc. = A $2.3 billion VA, WV, NC and TN branch franchise — 135 years of continu 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
Se First _— Community Investment Highlights Bancshares, Inc. True retail franchise generating low cost core deposits — Over 119,000 customer accounts with Q4 2009 average cost of funds of 1.62%, below peer average of 1.73% and declining further in January Exceptional balance sheet profile Strong loa
Slide 6: Investment Highlights
Investment Highlights Bancshar Se First Community res, Inc. Re-positioned balance sheet December 31, 2009 — Sold and charged-off pooled TPS eliminating future exposure — Drove 2009 losses Fresh start on 2010 — Eliminated the overhang of potential TPS impairments — Continued capital strength — Core e
Slide 7: Experienced, Executive Management Team
Experienced, Executive Management Team rinse Commu Bancsha nity res, Inc. Strong culture of management and employce ownership Established and experienced management team with average tenure > 18 years; total insider ownership of 6.887 Years in Banking Years with FCB Joba M. Mendez 28 Pay President a
Slide 8: Current Franchise Overview: Branch Map
citi Current Franchise Overview: Branch Map incshares, Inc. * 71 locations across five-states (Virginia, West Virginia, North Carolina, FP ‘Tennessee and South Carolina ) Markets Attractive urban and suburban markets in the Carolinas, Virginia, West Virginia, * Pull array of services erates nancial
Slide 9: Current Franchise Overview: Market Demographics and Position
Current Franchise Overview: Market Demographics and Position
Slide 10: Strategic Direction
Strategic Direction He First Community Bancshares, Inc. Transformational growth to $5 billion — Targeted strategic bank acquisitions + Fill in primary markets + Attractive price levels — FDIC-assisted transactions + Possible larger transactions + Primary and secondary markets Continue diversificatio
Slide 11: Strategic Direction
S$ First Comunity Strategic Direction Bancshares, 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 int Associated Financial Service
Slide 12: Credit Quality
Se First Community Credit Quality Bancshares, Inc. Protect the culture/defend underwriting Defensive posture on real estate Cutting all exposures to A&D through remainder of the cycle Outstandings have fallen Carty excess liquidity Early detection of emerging problem loans Recent CRE stress testing
Slide 13: Earnings Leadership
Earnings Leadership * Efficiency ra ae — Conservative business approach ' — Low cost structure in region ax — Lower cost workforce = Core Deposits — Built over years of operation — Value of the franchise * Cost of Funds — Strong DDA base Teyer 2 7 MISH 6% STM aBTER ~ Diseii ed approach to pri Divers
Slide 14: Key Franchise Differentiator: Core Low Cost Deposits
Key Franchise Differentiator: Cony Retail Franchise with Core, Low Cost Deposits Bancshares, Inc. Deposit Composition [Account Balances as of January 29, 21 as of January 29, 2010 Daman Accounts Balance Demand 35,035, 0.00 Inyerest Bearing Demand 35,090 037° Savings 24995 083% “Toul DDA nena Time 2.
Slide 15: Key Franchise Differentiator: Rapid Growth in Non-Interest Income
Key Franchise Differentiator: Se First Community Rapid Growth in Non-Interest Income Bancshares, Inc. 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
Slide 16: M&A
He First Community M&A Bancshares, Inc. Opportunity: Filters: FCB is a strong partner FCB provides exit strategy for institutions under ptessure = Look to augment existing franchise Opportunistic = Assisted transactions = Strong currency Predominately stock Growing opportunity throughout credit cycl
Slide 17: Recent Acquisitions: Bank & Thrift
Recent Acquisitions: Cortthity Bank & Thrift Tr i Bancshares, Inc. lle 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 strong and tal
Slide 18: Recent Acquisitions: Insurance Agency Transactions
Recent Acquisitions: Se First Community Insurance Agency Transactions Bai res, Inc. Acquired GreenPoint Insurance (High Point, NC) in September 2007 — Full service insurance ageney headquartered in High Point, NC Provider of commercial and personal insurance lines, employee benefits and life and hea
Slide 19: Loan Portfolio: Diversified Portfolio with Strong Loan Quality
Loan Portfolio: Diversified Portfolio with Strong Loan Quality _Se res, Inc. * Strong loan quality ~— NPLs / Net Loans at December 30, 2009 of 1.47% ~ Total delinquency of 2.32% Geographically diversified portfolio across the regior Highly Granular: ~ Majority oft loans in $30,000 to $300,000 rar To
Slide 20: Loan Portfolio: Strong Loan Quality
Loan Portfolio: Cortthity Strong Loan Quality Bancshares, Inc. Non-Performing Loans / Total Loans 4.00% = sre Pees 5 2008 2005-2006 2007 2008-2009 Reserves / Nonperforming Loans Net Charge-Offs / Average Loans Pa 2007 2008 2009
Slide 21: Loan Portfolio: Residential Real Estate
Loan Portfolio: Cony Bancshares, Inc. Residential Real Estate Portfolio Residential Real Estate — ‘Total Portfolio of $657.7million Geographic Dispersion * The residential real estate portfolio is made up of 11,015 loans with an average balance of $59,710 Fourth quarter 2009 consumer credit scoring
Slide 22: Loan Portfolio: CRE Non-Owner Occupied
Loan Portfolio: Se First, . Community CRE Non-Owner Occupied Bai res, Inc. * The Company holds 1,280 CRE Loans with an average balance of $267,745; the average term of the io 25% ofthe i + 53% of CREL ied and of ied CRE Loans is shown below + The CRE loan book i ically diversified wit NC 33% and VA
Slide 23: Loan Portfolio: A&D and Construction
Loan Portfolio: Bris, Community A&D and Construction Bancshares, * The Company holds 730 A&D ion L i 326 * The A&D and Ci ically diversified with the th being: NC 51% WV sor end VAS . 9 mili 30, 2009, to $127.2 milli December 31, 2009 A&D and Construction ~ Total Portfolio of $127.2 million Type se
Slide 24: Fourth Quarter 2009 Update
He First 7 Community Fourth Quarter 2009 Update Bancshares, Inc. Fourth quarter GAAP net loss of $34.56 million and diluted EPS of $(1.95) per share. — Includes pre-tax trust preferred impairment charges of $43.70 million and loss on sales of trust preferreds of $14.82 million Core earnings remained
Slide 25: Current Franchise Overview: Financial Results
Current Franchise Overview: Cortthity Fi ial Results Bancshares, Inc. 2005 2006 2007 2008 2009 Net income avaikbbk to common sharehoklers (as-reported) $ 26303 $ 28948 $ 29632 $ 2,826 § (40,388) Died $ 232 $ 257 $ 262 $ 025 $ (272) Core net income * $ 26077 $ 28614 $ 29,777 $ 21,865 $ 16,712 Core di
Slide 26: Financial Performance Highlights: Efficiency, Cost of Funds, Net Interest Margin
Financial Performance Highlights: Cortthity Efficiency, Cost of Funds, Net Interest Margin — Bancshares, Inc. Efficiency 80% 7 MFCBC ™ Peers z 3 a? ie = a z & FY 60% 7B s 2007” 2008 2009 2004 2005 2006 Cost of Funds Net Interest Margin
Slide 27: Investment Portfolio: Composition
Rinse, . Community I Portfolio: Compositi Bancshares, Inc.
Slide 28: Investment Portfolio: Trust Preferred Securities
Investment Portfolio: He First Community Trust Preferred Securities Bancshares, Inc. le-Issue — $41.11 million market value at December 31, 2009, representing 73% of par value Pooled Trust Preferred holdings = $1.65 million market value at December 31, 2009, representing 3% of par value — Sold four
Slide 29: Why buy FCBC?
He First Community Why buy FCBC? Bancshares, Inc. = A $2.3 billion VA, WV, NC and TN branch franchise — Robust market share in legacy markets and attractive expansion into growth markets as regional — Looking to grow via strategic and opportunistic FDIC-assisted deals * True retail franchise generat
Slide 30: Why buy FCBC?
Cortthity Why buy FCBC? Bancshares, Inc. = Strong pre-tax, pre-provision core income " Resilient net interest margin of 3.92% for Q4 2009 and 3.74% for 2009 = Strong gin, fee-based revenue Strong dividend yield at over 3% = Eliminated pooled trust P Positioned to emerge as one of the strongest playe
Slide 31: Your First Financial Resource
Vy 266 First . Community Bancshares, Inc. YOUR FIRST FINANCIAL RESOURCE
Slide 32: Non-GAAP Reconciliation of Core Earnings
Non-GAAP Reconciliation of Core Appendix A Earnings SKM Ss mo Ss MR Ss MR Ss GRRH Secu gins fc Td ‘thrshan cron inp Boe AN
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