First Community Bankshares, Inc. · NASDAQ:FCBC
First Community Bankshares — First Community Bancshares — Investor Presentation (June 2012)
30 slides from First Community Bankshares's investor presentation, Jun 5, 2012
Slide 1: First Community Bancshares, Inc. – June 5, 2012
2 First June 5, 2012 Community Bancshares, Inc.
Slide 2: Forward-Looking Disclosures
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 assump
Slide 3: First Community Bancshares
First Community Bancshares 3
Slide 4: Overview
Overview □ A $2.2 billion VA, WV, NC and TN branch franchise - Nasdaq Global Select - Russell 3000 □ $897 million Wealth Management Division - $461 million Trust Operation - $436 million RIA □ Four - state franchise with solid market share in legacy markets □ True retail franchise generating low cos
Slide 5: Investment Highlights
Investment Highlights □ 138 years of success….. since 1874 □ Attractive Markets □ Superior Efficiency (57% in Q1 2012) □ Exceptional balance sheet profile/Conservative Credit Culture/Disciplined Underwriting □ Strong asset quality □ Strong non - margin, fee - based revenue diversification 26% of rev
Slide 6: Top Market Share
Top Market Share 6 Source: 2011 FDIC Summary of Deposits
Slide 7: Investment Highlights
Investment Highlights Stable, Low - Cost funding Strong Net Interest Margin Excess Capital Available No TARP or Capital Raise Overhang Loan Portfolio Performance – Highly granular – average loan balance of $57,800 – Virtually no A&D exposure – Well diversified – Total Delinquency of 2.69% – NPA’s/To
Slide 8: Franchise Branch Map
▪ 58 locations in WV, VA, NC, TN ▪ Mix of urban growth and stable legacy markets ▪ Growth targets in NC Piedmont/Triad & Richmond VA and East TN ▪ Deposit breakout : - West Virginia $926 million - Virginia* $556 million - North Carolina $277 million - Tennessee $ 56 million Franchise Branch Map Lega
Slide 9: Strategic Priorities
▪ Substantial growth opportunity ▪ Targeted strategic bank acquisitions ▪ Fill in primary markets ▪ Attractive price levels ▪ FDIC - assisted transactions ▪ Possible larger transactions ▪ Primary and secondary markets ▪ Build presence in mid - Atlantic region ▪ Capitalize on in - market transactions
Slide 10: Peoples Bank of Virginia Transaction Rationale
Peoples Bank of Virginia Transaction Rationale □ In market acquisition consistent with FCBC’s Merger & Acquisition strategy □ Creates 10 th largest Virginia based bank by deposits in the Richmond market □ Strong cultural fit 10 Strategic Rationale Financially Attractive Low Risk Profile □ Exceeds Me
Slide 11: Peoples Bank of Virginia Pro Forma Branch Map
Peoples Bank of Virginia Pro Forma Branch Map Legacy Markets 11 Growth Market VA- based Rank Institution Branches Deposits ($mm) Market Share (%) 1 Union First Market Bkshs Corp. 44 1,516 4.98 2 Franklin Financial Corp. 8 667 2.19 3 Village Bank & Trust Finl Corp 15 508 1.67 4 First Capital Bancorp
Slide 12: Peoples Bank of Virginia Financial Impact of the Transaction
Peoples Bank of Virginia Financial Impact of the Transaction 12 Transaction Assumptions Financial Impact Pro forma Capital Ratios □ Tier 1 Leverage Ratio of approximately 11.2% □ Total Risk - based Capital Ratio of approximately 17.3% □ Tangible Common Equity / Tangible Assets of approximately 9.4%
Slide 13: Peoples Bank of Virginia Summary
Peoples Bank of Virginia Summary 13 □ Transaction drives EPS growth and shareholder value for both FCBC and Peoples shareholders □ Manageable transaction size and strong pro forma capital ratios allow for future opportunities □ M&A pipeline and organic growth opportunities in targeted growth markets
Slide 14: Deposit Composition
Deposit Composition March 31, 2012 Key Franchise Differentiator Retail Franchise with Core, Low Cost Deposits ▪ Over 115,400 retail and business accounts ▪ No brokered deposits ▪ Significantly lower cost of funding Account Balances as of March 31, 2012 Accounts Balance Period End W.A.R. Demand 35,37
Slide 15: Stable Geographies for Loans and Deposits
Key Franchise Differentiator Stable Geographies for Loans and Deposits 15 March 31, 2012 WV $925,572 VA $321,049 NC $277,155 TN $55,974 Deposits by State (in thousands) WV $678,021 VA $217,987 NC $421,683 TN $68,834 Loans by State (in thousands)
Slide 16: Loan Portfolio
Loan Portfolio Diversified Portfolio with Strong Quality • Strong loan quality • NPLs / Loans at March 31, 2012, of 2.01% (Includes TDR’s) • Geographically diversified portfolio across the region • Highly Granular: • Avg Comm Loan $180 thousand • Avg Retail Loan $37 thousand • Top 10 loans in portfo
Slide 17: Asset Quality Ratios
0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% 2008 2009 2010 2011 Q1 12 0.45% 0.70% 0.90% 0.67% 0.38% 0.37% 1.12% 1.89% 1.31% 1.22% FCBC Peer 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 2008 2009 2010 2011 Q1 12 0.99% 1.49% 2.06% 1.85% 2.01% 1.39% 3.34% 4.60% 4.88
Slide 18: Asset Quality Ratios – Reserves
Asset Quality Ratios Reserves / Non - Performing Loans Reserves / Total Loans Peers include publicly traded banks with assets between $1 and $4 billion in NC, SC, East TN, VA, and WV (BNCN, CFNL , CHCO, EVBS , FBNC, FFCH, FNBN, FSGI, HMPR , MBRG, NBBC , PEBK, PFBI , SCMF, SMMF, STEL, UBSH , VCBI, YA
Slide 19: Summary of 1Q 2012 Earnings
Summary of 1Q 2012 Earnings Three Months Ended March 31, 2012 2011 Change Net Interest Income 17,977$ 18,275$ -1.6% Provision for Loan Losses 922 1,612 -42.8% Net Interest Income (after provision) 17,055 16,663 2.4% Net Investment Impairment Losses - (527) NM Other Income 7,991 10,026 -20.3% Total N
Slide 20: Balance Sheet Summary
Balance Sheet Summary March 31, December 31, 2012 2011 Change Cash & Securities 590,838$ 533,214$ 10.81% Total Loans 1,390,047 1,401,887 -0.84% Allowance for Loan Losses 25,800 26,205 -1.55% Total Loans (net) 1,364,247 1,375,682 -0.83% Other 248,184 255,893 -3.01% Total Assets 2,203,269$ 2,164,789$
Slide 21: Financial Performance Highlights – Efficiency
50% 55% 60% 65% 70% 2008 2009 2010 2011 Q1 12 58.22% 60.09% 60.03% 59.56% 57.18% 65.58% 67.49% 65.65% 65.58% 66.51% FCBC Peer Financial Performance Highlights Efficiency Peers include publicly traded banks with assets between $1 and $4 billion in NC, SC, East TN, VA, and WV (BNCN, CFNL , CHCO, EVBS
Slide 22: Financial Performance Highlights – Cost of Funds and Net Interest Margin
0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% 3.00% 2008 2009 2010 2011 Q1 121 2.46% 1.97% 1.50% 1.17% 1.02% 2.82% 2.08% 1.57% 1.23% 0.95% FCBC Peer Financial Performance Highlights Cost of Funds and Net Interest Margin Peers include publicly traded banks with assets between $1 and $4 billio
Slide 23: Attractive Valuations
Attractive Valuations 23 ▪ Using a comparable peer group of high - performing banks based in the Virginias, FCBC is an attractively priced name ▪ Peer group consists of $1 - $10 billion banks in W.Va. and Virginia with TCE > 6% and NPA’s <5% ▪ FCBC shows strong returns and asset quality measures ver
Slide 24: Why buy FCBC?
▪ A $ 2.20 billion VA, WV, NC and TN branch franchise – Robust market share in legacy markets and attractive expansion into growth markets ▪ Positioned as regional consolidator – Growth plan via strategic and opportunistic FDIC - assisted deals ▪ True retail franchise generating low cost core deposi
Slide 25: Why buy FCBC?
▪ Strong pre - tax, pre - provision core income ▪ Resilient net interest margin of 3.91% for 1Q 2012 ▪ Strong non - margin, fee - based revenue diversification ▪ Strong dividend yield of over 3% ▪ Positioned to emerge as one of the strongest players in the region and build one of the best franchises
Slide 26: Supplemental Information
Supplemental Information 26
Slide 27: Non-GAAP Reconciliation of Core Earnings
Appendix A 2008 2009 2010 2011 Q1 12 Net income 1,699$ (40,856)$ 21,847$ 20,028$ 6,001$ Securities gains (1,899) 11,673 (8,273) (5,264) (51) Other-than-temporary impairments 29,974 78,863 185 2,285 - Acquisition gains - (4,493) - - - Amortization of intangibles 689 1,028 1,032 1,020 233 Prepayment p
Slide 28: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio ▪ The Company has 1,143 CRE Loans with an average balance of $310 thousand; the remaining average term of the portfolio is 47 months and 26% of the loans are floating rate ▪ The CRE loan book is geographically diversified with the three largest market areas being: Le
Slide 29: Non-accrual Loans by State
Non - accrual Loans by State Virginia West Virginia North Carolina Tennessee Total (In thousands) Commercial & Industrial -$ 571$ 1,219$ 76$ 1,866$ Real Estate - Construction 8 37 319 30 394 Real Estate - Commercial 603 3,839 4,634 1,868 10,944 Real Estate - Residential 804 897 8,740 932 11,373 Cons
Slide 30: Contact Information
Contact Information First Community Bancshares, Inc. NASDAQ: FCBC One Community Place Bluefield, VA 24605 For More Information Contact: David D. Brown Chief Financial Officer First Community Bancshares, Inc. (276) 326 - 9000 30
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