First Community Bankshares, Inc. · NASDAQ:FCBC
First Community Bankshares — First Community Bancshares — Investor Presentation (March 2012)
30 slides from First Community Bankshares's investor presentation, Mar 22, 2012
Slide 1: March 22, 2012
March 22, 2012 ms SF inst 6 Community, Baicshares, Ine. www.febine.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 assumptio
Slide 3: First Community Bancshares
Slide 4: Overview
Overview OA $2.2 billion VA, WV, NC and TN branch franchise -Nasdaq Global Select -Russell 3000 O $873 million Wealth Management Division -$444 million Trust Operation -$429 million RIA Q Four-state franchise with solid market share in legacy markets CO True retail franchise generating low cost core
Slide 5: Investment highlights
estment F 0 138 years of success. O Attractive Markets O Superior Efficiency (59% in 2011) Q Exceptional balance sheet profile /Conservative Credit Culture/Disciplined Underwriting O Strong asset quality O Strong in, fee-based revenue 31% of revenues from non-spread sources bd
Slide 6: Top Market Share
Top Market Share Princeton WV 29.48% 2) Bluefield WV 50.49% al Mercer County WV 36.34% il Buckhannon WV 31.70% 2 Grafton WV 45.93% 2) Source: 2011 FDIC Summary of Deposits
Slide 7: Stable, Low-Cost Funding
» Stable, Low-Cost funding »> Strong Net Interest Margin ™»> Excess Capital Available »> No TARP or Capital Raise Overhang » Loan Portfolio Performance — Highly granular — average loan balance of $57,000 — Virtually no A&D exposure — Well diversified — Total Delinquency of 2.62% — NPA’s/Total Assets
Slide 8: Franchise
Franchise Branch Map 35 locations in WV, VA, NC, TN Lester = Mix of urban growth and stable legacy markets * Growth targets in NC Piedmont/Triad & Richmond VA and East TN * Deposit breakout : - West Virginia $886 mi gi $560 i - North Carolina $284 million oo. -Tennessee $ 59 million Tr fr ponding Pe
Slide 9: Strategic Priorities
Strategic Priorities é ™ Continue diversification of revenues * Substantial growth opportunity * Acquisition of small insurance agencies * ‘Targeted strategic bank acquisitions = Fill in primary markets * Populate primary markets Achieve greater integration with bank services * Build wealth manageme
Slide 10: Peoples Bank of Virginia: Transaction Rationale
Peoples Bank of Virginia Transaction Rationale Strategic Rationale Financially Attractive Low Risk Profile Q_Inmarket acquisition consistent with FCBC’s Merger & Acquisition o o ooo oOo oo o strategy Sons 10* largest Virginia based bank by deposits in the Richmond arket stig cultural fit Exceeds Mer
Slide 11: Peoples Bank of Virginia: Pro Forma Branch Map
Peoples Bank of Virginia Pro Forma Branch Map D Advances objective of entry into oa targeted grows, Maric o Richmoné’s superi demographics ‘complements CBC's current foo! Prjexe popula gmt 4% = Projected hoch fame grow
Slide 12: Peoples Bank of Virginia: Financial Impact of the Transaction
Peoples Bank of Virginia Financial Impact of the Transaction Transaction A sumptions Pro forma Capital Ratios OoO0 oo oo oa ooo Gross eredit mark on total loans and OREO of $17.5 million oF 1.4% = Reviewed 59% of total 4.70% of land and ADC loans One-time merger expenses of approximately $5.2 millio
Slide 13: Peoples Bank of Virginia: Summary
Peoples Bank of Virginia Summary Q Transaction drives EPS growth and sharcholder value for both FCBC and Peoples shareholders Q Manageable transaction size and strong pro forma capital ratios allow for future opportunities O M&A pipeline and organic growth opportunities in targeted growth markets re
Slide 14: Key Franchise Differentiator
Key Franchise Differentiator Retail Franchise with Core, Low Cost Deposits Deposit Composition Account Balances as of December 31 2011 December 31, 2011 Accounts Balance Demand M585 240208 Ioteestearing Demand «36910 275,156 Savings 23996 394707 “Toa DDA 2a OT Time W425 275,876 Time Jumbo 1382 252,8
Slide 15: Deposits by State
Deposits by State (athena wy WN $885,812 S314, 416 December 31, 2011
Slide 16: Loan Portfolio
Loan Portfolio Diversified Portfolio with Strong Quality Strong loan quality + NPLs / Loans at December 31, 2011, of 1.85% (Includes TDR’s) Geographically diversified portfolio across the rej Highly Granular + Avg Comm Loan $176 thousand + Avg Retail Loan $36 thousand ‘Top 10 loans in portfolio repr
Slide 17: Non-Performing Loans / Total Loans; Net Charge-Offs / Average Loans
Non-Performing Loans / Total Loans Net Charge-Offs / Average Loans 500% 1 WFCHC w Peer Qin qn gn am 2 Qi Gz Qs Qe Non-performing loans have fared very well compared to the geographical peer group throughout the cycle. Net charge-offs are trending lower for 2011.
Slide 18: Reserves / Non-Performing Loans; Reserves / Total Loans
Reserves / Non-Performing Loans Reserves / Total Loans nao 7 Peer lhsuulk Littl | | | | bial : mow Qin Qt Qt Quit an Qin @n Qn Qt Throughout the cycle, FCBC has kept a strong non-performing coverage ratio In addition to high performance compared to peer in non-performers, the reserve has remained st
Slide 19: Summary of 4Q 2011 Earnings
Summary of 4Q 2011 Earnings [Net etre ocome (ter rosin) ECTS TO EP Te 1 ined) Sais 02 37% | 107s 123 ARI Dede Decherd sam $01 oH% $s om $ Om OMe
Slide 20: Balance Sheet Summary
Balance Sheet Summaty December 31, December 3, 2011 20 Cash & Secutes TotalLoans otal Loans (net) 1375682 Other 3 “Total Assets Noniateret Bearing Deposits Tnvorest Bearing Deposits otal Deposits Shoe-teom Bowowings Long teem Borrow Other Bepty “Total Liabilies & Equity Short and long term borrowing
Slide 21: Financial Performance Highlights: Efficiency
Financial Performance Hig! Efficiency 0% arcsec 682% 68.20% = Peer : 65.90% Sak 5.00% 65% Chi so. 0% 57.29 35% 7 50% 7 20 QI Qe QS Qa * Consistently outperform peer * Trending downward
Slide 22: Cost of Funds and Net Interest Margin
Financial Performance Hig! Cost of Funds and Net Interest Margin Cost of Funds Net Interest Margin ae WCHE wee as aw Qin Qn Qs Quit mo a Qi Qa st au Highly retail-oriented deposit base in legacy markets makes for low cost of funds Strong net interest margin has provided a significant earnings base t
Slide 23: Comparable peer group of high-performing banks
= Using a comparable peer group of high-performing banks based in the Virginias, FCBC is an attractively priced name = Peer group consists of $1 - $10 billion banks in W.Va. and Virginia with TCE > 6% and NPA’s <5% High Performing Group 1020-866 OS1«-7.78 «383566024536 GD 8.09. FeBe 1150 960 091 679
Slide 24: A $2.16 billion VA, WV, NC and TN branch franchise
= A $2.16 billion VA, WV, NC and TN branch franchise — Robust market share in legacy markets and attractive expansion into growth markets Positi as regional — Growth plan via strategic and opportunistic FDIC-assisted deals = True retail franchise generating low cost core deposits — Over 115,000 cust
Slide 25: Strong pre-tax, pre-provision core income
Strong pre-tax, pre-provision core income Resilient net interest margin of 3.87% for 2011 Strong in, fee-based revenue di Strong dividend yield of over 3'% Positioned to emerge as one of the strongest players in the region and build one of the best franchises in the Mid-Atlantic Attractive valuation
Slide 26: Supplemental Information
Supplemental Infor
Slide 27: Gi) ers TH) G60
Gi) ers TH) G60 mgr Ta) SS - - 4493) - - 1028 1082 1020 re im en Swe — 2255 Bae Sen 38 Tino 9 oe Se ors os
Slide 28: Shopping Center
Stopping Center (sclera Ps I it term of the portfolio is 47 months and 25% of the loans are floating rate The CRE loan book is ically diversified wit being: Legacy 43%, NC/SC 31% and Eastern VA 18% ‘The top 10 CRE loans represent 15% of the CRE portfolio Fnapoal dies of December 3, 2017
Slide 29: Non-accrual Loans by State
Slide 30: Contact Information
Contact Information wy ee een Inc. 0 First_, Pea Community Bluefield, VA 24605 Bancshares, Inc. For More Information Contact: David D. Brown Chief Financial Offi First Community Bani (276) 326-9000
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