First Capital Bancorp — IPO Roadshow (March 2012)
24 slides from First Capital Bancorp's IPO roadshow presentation, Mar 19, 2012
Slide 1: Free Writing Prospectus
Free Writing Prospectus Filed Pursuant to Rule 433 Registration Statement No. 333-179095 Related to Prospectus dated February 13, 2012 Dated March 19, 2012
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain information contained in this discussion may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are g
Slide 3: First Capital Bank - Where People Matter
First Capital Bank - “Where People Matter” At First Capital Bank, whether you’re a customer, shareholder or employee, we accomplish this through our dedication to One Simple Principle………… PEOPLE MATTER! 3
Slide 4: Company Profile
Company Profile • First Capital Bancorp, Inc., is a one bank holding company headquartered in Richmond, Virginia. • First Capital Bank, operates seven full service banking offices in the greater Richmond, Virginia market. • The Bank engages in a general commercial banking business, with a particular
Slide 5: Key Strategies
Key Strategies • Hire and empower experienced, local bankers • Emphasize relationship banking targeted to the needs of small and medium-sized businesses, their owners and key employees, and the professional community • Resume the growth of our delivery system • Shed “problem assets” and return focus
Slide 6: Strengthened Management Team
Strengthened Management Team Years of Banking Year Name Position Experience Joined Grant Grayson Chairman of the Board 14 1998 John M. Presley Managing Director and CEO 27 2008 Robert G. Watts, Jr. President 27 2000 Gary Armstrong SVP and Chief Lending Officer 25 2009 Andy Ferguson SVP and Chief Cre
Slide 7: John Presley Bio
John Presley Bio First Market Bank enamel 1997 - 2003 —— 2 NATIONAL COMMERCE FINANCIAL 2003 - 2004 ‘04 Assets: $23.0 billion \ President & CEO | We CFO / Head of Integration | CFO cele 2004 - 2006 Head of Strategic Initiatives (M&A) “11 Assets: $5258 million FIFTH THIRD BAN 108 Assets: $120. blica 2
Slide 8: Our Market – Richmond MSA
Our Market – Richmond MSA • State Capitol and third-largest metro area in Virginia • Growing population in excess of 1.2 million; banking deposits of $30 billion • One of the Best Cities for Business among 102 metro areas, rated by the Wall Street Journal's MarketWatch.com, December 13, 2011. • Virg
Slide 9: Our Facilities
Our Facilities — Headquarters 11001 West Broad Street 4222 Cox Road Glen Allen, V4.23060 Glen Allen, VA23060 1776 Staples Mill Road Richmond, VA 23230 901 East Cary Street, Suite 100 Richmond, VA 23219 2610 Buford Road 7100 Three Chopt Road 409 S. Washington Highway Richmond, VA 23235 Richmond, VA 2
Slide 10: Branch Network
Branch Network Richmond, VA as of June 30, 2011 Total Total Deposits in Market Market Share Institution (ST) ($000) (%) Bank of America Corp. (NC) 11,275,609 37.06 Wells Fargo & Co. (CA) 6,303,623 20.72 Sun Trust Banks Inc. (GA) 3,319,071 10.91 BB&T Corp. (NC) 2,578,226 8.47 Year Purchased/ Deposits
Slide 11: Balance Sheet Data
Balance Sheet Data • We had to slow our growth due to capital constraints • The growth opportunities with our market remain exceptional 11
Slide 12: Loan Composition
Loan Composition • We have reduced our construction loan exposure by more than 50% • The vast majority of our commercial real estate loans are to owner- occupied businesses 12
Slide 13: Deposit Composition
Deposit Composition • 67% of our 2011 ending deposits were Transaction Acct core deposits 14% Jumbo CD 32% • We lowered our reliance on CD’s to 51% of deposits, MMDA & Savings down from more than 35% 75% of deposits in 2008 Retail CD 19% 13
Slide 14: Funding Sources
Funding Sources • Our assets are financed with committed and stable funding sources • Funding sources at year-end 2011 are presented below Sub Debt Equity Other liabilities Trust Preferred 0.4% 7.5% 0.7% FHLB 1.0% Deposits Borrowings 81.3% 9.2% 14
Slide 15: Income Statement Data
Income Statement Data • Our bottom line over the past four years has been adversely impacted by credit losses • These credit losses have overshadowed our core growth 15
Slide 16: Earnings Power
Earnings Power • Our recent credit losses have masked our growth in core earnings power Revenue consists of net interest income plus noninterest income Noninterest expenses does not include provision expense or income tax expense PPNR is pretax preprovision net revenue or (total revenue less noninte
Slide 17: Asset Quality
Asset Quality • Our nonperforming assets (NPA’s) peaked in the second quarter of 2011 • We had no severely delinquent loans (90+ days past due) at year-end • Loans 30 to 89 days past due at year-end were $2.3 million, down from $7.6 million at the end of the 2nd quarter of 2011 17
Slide 18: Asset Quality
Asset Quality • Our NPAs and severe delinquencies as a percentage of our equity plus reserves would fall to 38% on a pro forma basis at year-end 2011 if we raise $17 million in the offering 18
Slide 19: Asset Quality
Asset Quality • Total adversely classified items, those items ranked according to an internally assigned grade of substandard or worse, as a percent of Tier 1 capital plus the allowance decreased to 85.6% at the end of the fourth quarter, compared to 90.0% at the end of the third quarter of 2011 and
Slide 20: Offering Overview
Offering Overview • Issuer: First Capital Bancorp, Inc. (Ticker: FCVA) • Security issued: Rights to acquire Units, with each Unit consisting of one common share and one 10-year warrant to purchase one-half of one common share at $2.00 per full share • Price: $2.00 per Unit • Offering Size: Up to 8.9
Slide 21: Standby Purchaser/Asset Resolution Plan
Standby Purchaser/Asset Resolution Plan • The Standby Purchaser is an experienced investor in, and advisor to, banks. It is anticipated that he will join the board of directors of FCVA upon the successful completion of the offering. • The Standby Purchaser approached FCVA about making a significant
Slide 22: The Units
The Units • Each Unit consists of one common share and one 10-year warrant to purchase one-half of one common share at $2.00 per full share • The warrants provide investors in the offering with the opportunity to enhance their potential return on investment and provide the Company with a mechanism t
Slide 23: Pro Forma Capitalization
Pro Forma Capitalization ($ in thousands, except per share amounts) 12-31-11 Pro Forma for Offering As Reported Minimum Maximum New equity raised (1) $ - 4,750 16,935 Subordinated debt $ 1,200 1,200 1,200 Trust preferred securities $ 5,155 5,155 5,155 Preferred equity $ 10,655 10,655 10,655 Common e
Slide 24: Company Highlights
Company Highlights • We have built a strong management team and platform for growth • The attractiveness of the Richmond market, including the opportunity to gain market share from out-of-state banks and weakened local community banks • The improving economy and our encouraging asset quality trends