First Community Bankshares, Inc. · NASDAQ:FCBC
First Community Bankshares — First Community Bancshares — IPO Roadshow (June 2009)
28 slides from First Community Bankshares's IPO roadshow presentation, Jun 1, 2009
Slide 1: Free writing prospectus legend
June 1, 2009 First Community Bancshares, Inc. (the "Issuer"), has filed a registration statement (including a prospectus and a related prospectus supplement) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus and the prospectus supple
Slide 2: 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 assumptions prove incorrect, actual res
Slide 3: Offering Terms
Issuer: First Community Bancshares, Inc. (NASDAQ: FCBC) Offering: Follow-on Public Common Stock Offering Transaction Size: Approximately $50 million Over-Allotment Option: 15% Use of Proceeds: General corporate purposes including the repayment of TARP funds, subject to regulatory approval, and suppo
Slide 4: Investment Highlights
Investment Highlights A $2.2 billion VA, WV, NC and TN branch franchise Strong history of core earnings and dividend payments Robust market share in legacy markets and attractive expansion into growth markets Legacy markets benefit from both economic stability and limited real estate price volatilit
Slide 5: Experienced, Executive Management Team
Experienced, Executive Management Team Years in Banking Years with FCB John M. Mendez President and CEO 24 24 Robert L. Buzzo President, FCBNA 36 36 E. Stephen Lilly Chief Operating Officer 28 12 David D. Brown Chief Financial Officer 10 4 Gary R. Mills Chief Credit Officer 18 10 Martyn A. Pell SVP
Slide 6: Current Franchise Overview: Branch Map
71 locations across five-states (Virginia, West Virginia, North Carolina, Tennessee and South Carolina ) Attractive urban and suburban markets in the Carolinas, Virginia, West Virginia, and Tennessee Full array of services creates financial partnership with our customers Strong growth from organic a
Slide 7: Current Franchise Overview: Market Demographics and Position
Deposit data as of June 30, 2008 Source: FDIC, SNL Financial Current Franchise Overview: Market Demographics and Position
Slide 8: Current Franchise Overview: Financial Results
Current Franchise Overview: Financial Results Core return on assets and return on equity significantly above peer GAAP averages NIM and Efficiency Ratio superior to peer averages 2005 2006 2007 2008* 1Q 2009 Net Income $26.3 mil $28.9 mil $29.6 mil $22.3 mil $5.2 mil1 Diluted EPS $2.32 $2.57 $2.62 $
Slide 9: Current Franchise Overview: Emphasis on Consistent Profitability
* Note: FCBC 2008 financial data shown as Core data: core income calculated as net income less the after-tax portion of impairment of investment securities; assumed tax rate of 35%; see the appendix for a reconciliation to GAAP Peers include publicly traded banks with assets between $1 and $ 3 billi
Slide 10: Current Franchise Overview: Emphasis on Consistent Profitability
Peers include publicly traded banks with assets between $1 and $ 3 billion in NC, SC, WV and VA (STEL, SCBT, VCBI, FBNC, UBSH, CHCO, FNBN, NBBC, CFNL, SCMF, CBKN, SMMF, BNCN, YAVY, GRAN, CWBS, EVBS) Source: SNL Financial and Company filings Average Cost of Deposits cost funds 2004 2005 2006 2007 200
Slide 11: Key Franchise Differentiator: Retail Franchise with Core, Low Cost Deposits
Deposit Composition Deposit data as of March 31, 2009 Source: SNL Financial and Company filings Key Franchise Differentiator: Retail Franchise with Core, Low Cost Deposits Demand 207947 Interest-Bearing Demand 194934 Savings 319007 Time 470940 Time Jumbo 287227 IRA 80034 IRA Jumbo 23355 Over 115,000
Slide 12: Key Franchise Differentiator: Rapid 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 approach Focused on cash management services for commercial clients Increased
Slide 13: Loan Portfolio: Diversified Portfolio with Strong Loan Quality
Loan Portfolio: Diversified Portfolio with Strong Loan Quality Strong loan quality NPLs / Loans at March 31, 2009 of 0.83%, down 15 bps from December 31, 2008 Geographically diversified portfolio across the region Small average loan balances with majority of loans in $30,000 to $300,000 range Top 10
Slide 14: Loan Portfolio: Strong Loan Quality
Loan Portfolio: Strong Loan Quality Non-Performing Loans / Total Loans Reserves / Nonperforming Loans Net Charge-Offs / Average Loans nco 2004 2005 2006 2007 2008 Q1 09 FCBC 0.24 0.38 0.22 0.19 0.45 0.47 Peers 0.18 0.12 0.11 0.13 0.3 0.62 reserves npl 2004 2005 2006 2007 2008 Q1 09 FCBC 295.89 399.8
Slide 15: Loan Portfolio: Residential Real Estate Portfolio
Loan Portfolio: Residential Real Estate Portfolio The residential real estate portfolio is made up of 11,475 loans with an average balance of $42,127 First quarter 2009 consumer credit scoring shows weighted average FICO of 690 Majority of loans are fixed rate 3-5 year balloons Floating rate loans g
Slide 16: Loan Portfolio: CRE Non-Owner Occupied
Loan Portfolio: CRE Non-Owner Occupied The Company holds 1,383 CRE Loans with an average balance of $226,548; 25% of these loans are floating rate loans and the average duration of the portfolio is 96 months 66% of CRE Loans are owner-occupied and the composition of non-owner occupied CRE Loans is s
Slide 17: Investment Portfolio: Composition
Less than 1 Year 1399 Within 1 - 5 Years 5330 Within 5 - 10 Years 76792 After 10 Years 161792 Source: SNL Financial and Company filings Investment Portfolio: Composition US Gov't Agency 54.127 Munis 114.623 Trust Preferreds 49.473 Mortgage Backed 298.591 Equities 5.85 At March 31, combined depreciat
Slide 18: Investment Portfolio: Mortgage Backed Securities
Investment Portfolio: Mortgage Backed Securities Source: Company filings Freddie Mac 44016082 Fannie Mae 28861394 Ginnie Mae 209157048 Private ARM 42177 Private CMO 16516163 Mortgage Backed Securities as of March 31, 2009 Fair Market Value of $298.6 million The Company made a cumulative effect adjus
Slide 19: Investment Portfolio: Trust Preferred Securities
Investment Portfolio: Trust Preferred Securities Single-Issue $26.77 million market value at March 31st representing 47% of par value Pooled Trust Preferred holdings $22.71 million market value at March 31st representing 21% of par value Modeled deferrals and defaults are monitored regularly for imp
Slide 20: Recent Acquisitions: Bank & Thrift Transactions
November 2008: Acquired Coddle Creek Financial Corp. (Mooresville, NC) Transaction: $33 million deal value, 158% Price to TBV 24.0% Price to Deposits, 13.8% Fran. Prem. to Core Deposits 59% Stock and 41% Cash Pro Forma Financial Impact: Significant positive mark-to-market adjustments Achieved cost s
Slide 21: Recent Acquisitions: Insurance Agency Transactions
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 insurance services Acquired REL Insurance Services (High Point, NC) in July 2008 P
Slide 22: Capital Raise Rationale
Capital Raise Rationale Additional capital will enhance First Community's already strong balance sheet / capital position and enable the Company to be opportunistic in the current market environment Increase tangible common equity ratio Anticipate Repayment of TARP funding subject to regulatory appr
Slide 23: Capital Raise Rationale
Capital Raise Rationale First Community's capital position as of March 31, 2009 as compared to its capital position following the repayment of TARP and the issuance of gross $57.5 million of common equity Tangible Common / Tangible Assets Tangible Common / Risk Weighted Assets Tier 1 Capital Total R
Slide 24: Investment Highlights
A $2.2 billion VA, WV, NC and TN branch franchise Robust market share in legacy markets and attractive expansion into growth markets Positioned as regional consolidator True retail franchise generating low cost core deposits Over 115,000 customer accounts Strong loan quality NPLs / Loans of 0.83% ve
Slide 25: Appendix: Summary Balance Sheet and Earnings
Appendix: Summary Balance Sheet and Earnings (1) Reflects the reclassification during 2004 of Federal Reserve Bank and Federal Home Loan Bank stock from securities available for sale to other assets, consistent with the 2005-2008 presentation.
Slide 26: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation Core basic earnings per common share is a non-GAAP measure which considers net income per common share without taking into consideration non-cash impairment charges on certain investment securities that have occurred. The reconciliation of core basic earnings per sh
Slide 27: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation
Slide 28: Your First Financial Resource
Your First Financial Resource
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