First · NASDAQ:FUNC
First — First United — Proxy Contest (May 2020)
9 slides from First's proxy contest presentation, May 19, 2020
Slide 1: Investor Presentation Supplement May 2020
Investor Presentation Supplement May 2020
Slide 2: Important additional information
2 2 Important additional information F irst United, its directors and certain of its executive officers will be deemed to be participants in the solicitation of proxies from First United's shareholders in connection with the 2020 annual meeting of shareholders. First United has filed a definitive pr
Slide 3: TSR and Valuation Relative to Peers
3 3 ▪ Driver’s Campaign has generated NO abnormal returns for First United’s shareholders or caused any meaningful improvement in the bank’s relative valuation – At all four of the key inflection points of Driver’s campaign, First United experienced NO significant returns relative to the SNL Bank In
Slide 4: First United's Relative TSR Following Certain Events
4 4 First United’s Relative TSR Following Certain Events Source: S&P Global Market Intelligence, FactSet (1) As of March 25, 2019 ( day before the announcement of Driver’s campaign) (2) As of May 22, 2019 ( day FUNC announced vote results after market close) (3) As of September 4, 2019 ( day before
Slide 5: First United P/TBV vs. SNL Bank Index $1-$5 Bln
5 5 (0.50x) (0.40x) (0.30x) (0.20x) (0.10x) 0.00x 0.10x 0.20x 0.30x 0.40x 0.50x Source: S&P Global Market Intelligence (1) From December 16, 2015 (announcement of Ms. Rodeheaver’s appointment to CEO) to March 26, 2019 (Driver’s campaign announcement) First United P/TBV vs. SNL Bank Index $1 - $5 Bln
Slide 6: First United P/TBV vs. SNL Bank Index $1-$5 Bln since Driver's campaign
6 6 (0.10x) 0.00x 0.10x 0.20x 0.30x 0.40x 0.50x Source: S&P Global Market Intelligence (1) March 26, 2019 (Driver’s campaign announcement) to present Since March of last year, First United’s P/TBV multiple has only meaningfully expanded during the most dormant period of Driver’s campaign (1) A B C D
Slide 7: Driver's criticism of First United's C&D loan portfolio
7 7 ▪ Driver’s criticism of First United’s construction and development (“C&D”) loan portfolio underscores the hypocrisy and inaccuracies of its campaign – First United’s level of C&D loans is within the range of most banks its size and in its region, whether measured as a percent of total risk base
Slide 8: First United C&D Loans / Total Risk Based Capital vs. Peers
8 8 31.5% 27.4% 66.4% 108.8% 95.7% 71.2% 73.8% MD Banks U.S. Banks $1B-$5B FUNC (68th Percentile) InBank (Lisa Narrell-Mead Director) (95th Percentile) Colorado FSB (Ethan Elzen CEO) (91st Percentile) Michael Driscoll has no bank track record of any kind First United Loan Composition vs. Driver Nomi
Slide 9: First United C&D Loans / Total Loans vs. Peers
9 9 5.1% 4.4% 11.2% 22.2% 20.8% 10.7% 11.3% MD Banks U.S. Banks $1B-$5B FUNC (75th Percentile) Colorado FSB (Ethan Elzen CEO) (98th Percentile) InBank (Lisa Narrell-Mead Director) (98th Percentile) Michael Driscoll has no bank track record of any kind First United Loan Composition vs. Driver Nominee