First Capital Bancorp — Shareholder Meeting (May 2015)
34 slides from First Capital Bancorp's shareholder meeting presentation, May 22, 2015
Slide 1: First Capital Bancorp Annual Shareholders Meeting May 20, 2015
FIRST CAPITAL BANCORPANNUAL SHAREHOLDERS MEETING MAY 20, 2015
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Readers are cautioned that this presentation contains forward-looking statements made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current knowledge, assumptions, and a
Slide 3: Economic & Market Outlook: Headwinds and Tailwinds
HEADWINDS TAILWINDS 3 •Consumers and Corporations are in Stronger Shape •Consumers have de-leveraged •Consumer Confidence is improving •Lower energy costs = shift in consumer spending •Fed Comfortable Enough to “Taper” •Low Interest Rates •Helps lower cost of capital •Helps budget deficit •Stock Mar
Slide 4: Economy
ECONOMY •March’s unemployment rate was 5.5%; however, with more and more Americans dropping out of the work force, the Labor Force Participation rate was only 59.3% •Although non-farm payrolls generally trended higher in 2014, in March 2015, payrolls increased only 126,000, well below Wall Street ex
Slide 5: Housing and household net worth
•Home prices have continued grow over the last 12 months based on data as of February 2015 •The National Association of Realtors currently forecasts existing home sales will increase 7% in 2015 •Net worth of U.S. households and nonprofit organizations is the highest on record, reflecting a surge in
Slide 6: Architectural Billing Index and commercial real estate prices
The Architectural Billing Index, a leading indicator for future nonresidential construction activity, showed significant improvement in May 2015, after two months of contraction. Source: AIA Commercial real estate prices have largely mirrored residential prices during the last decade. Source: CoStar
Slide 7: Household debt and debt service
Household debt has slightly increased suggesting that after a long period of deleveraging, households are borrowing again Household debt service as a % of income is still near its lowest level in 30 years Evidence is building that the household risk aversion that persisted through the post-recession
Slide 8: Percent of Balance 90+ Days Delinquent by Loan Type
Percent of Balance 90+Days Delinquent by Loan Type Percent 8 7 ‘Mortgage Delinquencies and Foreclosures by Period Pst Ou, Al Loans 0 2003 2004 2005 2005 2007 2008 2009 2010 2011 2012 2013 2014 ‘Source: FRENY Consumer Creat PanevEqutax Total Balance by Delinquency Status Newly Originated Installment
Slide 9: Banking Industry
BANKING INDUSTRY Number of FDIC-Insured Banking Organizations 1998-2014 Seton Assets of FDIC-Insured Banking Organizations 1998-2014 (neSank Holding Companies toldog Cam ‘Mut Bank Holding Companies Number of FOIC-Insured "Problem" Institutions. asekeionie Dic naerecsea rabies anainbons: 2008-2014 be
Slide 10: Quarterly Net Interest Margins and Industry Income & Expenses
‘Quarterly Net Interest Margins, Annualized Net Loans and Leases to Deposits| 2010-2014 (Domestic and Foreign) pore zots-208 ot np ——~___| - eos Sa eT TT EET ET ETT TTT Se ee ee a ae ‘Trends in FDIC-Insured institutions’ Income & Expenses Quarterly Net Income 2006-2014 aati ‘ot Quarry Net Operating
Slide 11: 2014 in Review
2014 IN REVIEW •Net Income of $4.4 Million –for the second year in a row, the most profitable year in the Company’s history •Loan growth, net of the allowance for loan losses, of $50.6 Million, or 11.96% increase as the economy and consumer confidence improved. • •A decrease in the 2013 Net Interest
Slide 12: Earnings
EARNINGS Another transformational year for the Company: 2012:Rights Offering and Capital Raise 2012/13: Implementation of the Company’s Asset Resolution Plan 2014: Ability to Grow and Expand Our Business Net income available to common shareholders was $4.4 million, or $0.30 per diluted share for the
Slide 13: Growth
GROWTH •Continued growth while conserving capital and supporting the underlying strength of the Company. •Growth in both loans and deposits, with particular growth in DDA accounts. •Continued implementation of the Company’s Asset Resolution Plan. •Continued implementation of marketing efforts geared
Slide 14: Strategic Priorities
STRATEGIC PRIORITIES AREAS OF CONTINUED FOCUS 1.Balance Sheet Management 2.Capital Strategy/Management 3.Management of Loan and Deposit Mix 4.Increasing Deposits to Fund Continued Loan Growth 5.Improving Efficiency Ratio 6.Maintaining Positioning with Increased “Community” Bank Competition
Slide 15: Net Income
NET INCOME
Slide 16: Net Interest Income
NET INTEREST INCOME $25 MM $20MM $15 MM $10 MM $5 MM $0 MM 2010 2011 2012 2013 2014
Slide 17: Loan Growth
LOAN GROWTH (in thousands)
Slide 18: DDA Growth
DDA GROWTH (in thousands) 70770 A06,
Slide 19: Asset Growth
ASSET GROWTH (total assets) $500 MM $400 MM $300 MM $200 MM I $100 MM $0 MM 2010 2011 2012 2013 2014
Slide 20: Tangible Common Equity/Assets
TANGIBLE COMMON EQUITY/ASSETS
Slide 21: Efficiency Ratio
EFFICIENCY RATIO Virginia Banks Source: SNL Data
Slide 22: Non Interest Expense
NON INTEREST EXPENSE
Slide 23: Capital Strategy
CAPITAL STRATEGY Priorities in effective management of our capital strategy: •Organic Growth •Accretive Acquisitions •Stock Buybacks •Dividends
Slide 24: FCVA
FCVA $5.00
Slide 25: FCVA
FCVA $6.00 $5.00 $400 EN met ve ser tty $3.00 $2.00 $1.00 $ T 7 T T T T r T r 06/30/12 8/30/12 12/31/12 03/34/13 06/30/13 OR/30/13 12/31/13 03/3/14 = 06/20/14 09/80/14 1/8/14
Slide 26: Earnings Per Share (Diluted)
EARNINGS PER SHARE (Diluted)
Slide 27: Improvements
IMPROVEMENTS Full Service ATMs Total Cash Recyclers
Slide 28: Locations
LOCATIONS
Slide 29: Marketing & Advertising
» PUTTING YOUR MARKETING & Pe) BATES Bish ADVERTISING 1 ——— * LET'S MAKE IT WORK ‘First Capital Bank
Slide 30: Branch Advertising
BRANCH ADVERTISING Earn Cash Back Stay In Control | Save For With Every Purchase Wherever You Go Our Dream Home ‘Hirt Capital Bank fuscia ti Fis Cpl Bank
Slide 31: Business and Personal Banking
BUSINESS PERSONAL 1 Feat Capa Bark “woe webvatage FINANCIAL SERVICES BUSINESS BANKING ble customised services signed tor Sas Busness Overs PERSONAL BANKING Fromonine banking 9 savings snd chacing acount, Irs serven ona feat name baa eat | aseutue | wcwent | rome | samme | commer INTRODUCING THE REWA
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Slide 34: First Capital Bancorp, Inc.
First Capital Bancorp, Inc.
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