First Community Bankshares, Inc. · NASDAQ:FCBC
First Community Bankshares — First Community Bancshares — Investor Presentation (September 2003)
24 slides from First Community Bankshares's investor presentation, Sep 12, 2003
Slide 1: First Community Bancshares, Inc.
First. Community Bancshares, Inc. i e ABS First , Communit Bancshares, Inc.
Slide 2: Presentation to Trident Securities
Presentation to Trident Securities
Slide 3: Cautionary Statement
Cautionary Statement 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
Slide 4: Company Overview
A $1.7 billion Financial Services Holding Co. And $.5 billion in Trusts and managed assets Focused on three states in the Southeast region A fast growth, high performance Company Focused on financial goals Russell 3000 NASDAQ National Market (Symbol: FCBC) ABA Banking Journal Top 100 in 2000 and 200
Slide 5: Company Overview: Heritage and Locations
Heritage dating back to 1874 One National Bank Charter Sixty operating locations in Virginia, West Virginia and North Carolina Ten retail mortgage offices - Corporate offices in Richmond, Virginia Wholesale mortgage operation- Focused on the Northeast and Northern Virginia Company Overview
Slide 6: Management
John M. Mendez, CEO-FCBI Robert L. Buzzo, President-FCBNA E. Stephen Lilly, Chief Operating Officer Robert L. Schumacher, CFO Over 100 years of combined management experience Thirteen area CEOs within the banking divisions with local decision-making authority Management grounded in Community Banking
Slide 7: Corporate Organization / Organizational Chart
Corporate Organization Administration Operations Finance/ Control Technology Services Credit Services Bankers Insurance Annuities Stone Capital Management Research Brokerage Trading FCBNA Community Banking Group (15+Divisions in the Southeast) United First Mortgage Wholesale Retail Community Realty
Slide 8: Market Position
Regional Community Bank alternative Mid-tier institution In between the "service failures of the super-regionals and the "limited resources" of small caps and de novo's Local flavor and service Robust product offering Multiple delivery channels Culture Market Position
Slide 9: Grounded in Community Banking
Grounded in Community Banking Relationship oriented versus transaction Friendly, Courteous service by people you know We want to be the alternative to the big bank approach High Tech-High Touch Local decision-making by local professionals People are the source of our success Empowerment Philosophy
Slide 10: Operational Advantages
Operational Advantages Technology Investment Philosophy - Purposeful NPV of Capital Investment Strategic Customer Service Advantage Technology Solutions - Leverage Costs with Growth Core Software License Image Based Items Processing (CAR/LAR & Branch Capture) Enterprise License for Loan Platform Int
Slide 11: Assimilation & Conversion
Assimilation & Conversion Methodical & Experienced Team Well Developed Templates Strong Process Controls Customer Centric Transparent Branch Involvement Market Pricing Quality & Speed CommonWealth converted 41 days after shareholder approval
Slide 12: Growth Strategy
Growth driven by acquisition, LPOs and De Novos Strong capabilities in M & A and profitable assimilation Five year growth target: $4 billion Primary Growth Targets in Hampton Roads in Virginia and Central Piedmont in North Carolina Recent acquisition of CommonWealth in Richmond Three new branches in
Slide 13: Growth Strategy
Build and consolidate Wealth Management and mortgages services through acquisitions Add insurance and full-service investment brokerage services through strategic partnerships and acquisitions Build NC franchise to $1 billion by 2007 Build Eastern Virginia to $1.4 billion along I-64 by 2007 Fill in
Slide 14: Projected FCBI Franchise (2007)
Projected FCBI Franchise (2007) Richmond Winston-Salem Norfolk Charlottesville Roanoke Charlotte Raleigh Morgantown Charleston FCBC Headquarters Current FCB Branch/LPO UFM Office Potential Future FCB Branch/LPO Greensboro Cornelius Virginia Beach Chesapeake
Slide 15: M&A Discipline
Sweet-spot: $100 MM to $300 MM Self-imposed, flexible criteria Eleven filter process Dilution limited to 3% in year 1 with max. 20% cost savings Year 2 at or near breakeven Year 3 full recovery of dilution Enhance leverage through cash and stock, where possible Regulatory capital at well-capitalized
Slide 16: Financial Objectives
Maintain Return on Equity at or above 17% Grow diluted EPS 8% to 10% annually Minimum EPS growth of 7% Maintain overall financial performance in the top 25% of national peers Grow market capitalization to $875 million Maintain efficiency ratio of 48%-50% Financial Objectives
Slide 17: Key Financial Data
Key Financial Data 12/31/00 12/31/01 12/31/02 6/30/03 Peers (3/31/03) Net Income (in millions) $17.063 $19.134 $24.719 $27.430 (annualized) N/A Diluted EPS $1.62 $1.75 $2.25 $2.50 (annualized) N/A Net Interest Margin 4.81% 4.50% 4.71% 4.54% 4.08% Non-Interest Income/Operating Revenue 21.37% 28.50% 2
Slide 18: Total Delinquency
Total Delinquency Total Delinquency
Slide 19: Non-Performing Assets as a % of Total Assets
Non-Performing Assets as a % of Total Assets % of Total Assets % of Total Assets
Slide 20: Coverage Ratio for Non-Performing Loans
Coverage Ratio for Non-Performing Loans Non-Performing Loans Non-Performing Loans
Slide 21: Return on Assets
Return on Assets Return on Assets
Slide 22: Return on Equity
Return on Equity Return on Equity
Slide 23: Comparable Group Analysis
Comparable Group Analysis Total Assets ($) Tangible Equity/ Tangible Assets (%) LTM ROAA (%) LTM ROAE (%) Price/ Tangible BV (%) Price/ LTM EPS (x) Price/ Est. EPS (X) Market Cap. ($) First Community Bancshares, Inc. 1,700.3 7.99 1.71 16.86 314.30 15.68 14.68 416.5 Harleysville National Corp. 2,406.
Slide 24: First Community Bancshares, Inc.
First. Community Bancshares, Inc. BG $ First Communit Bancshares, Inc.
First Community Bancshares — Investor Presentation (September 2003) on 6ix