Xenith Bankshares (XBKS) 8-K Regulation FD Disclosure

BankCap

Partners

Investor Meeting

October 27, 2010

Exhibit 99.1

Forward-

Looking Statements

2

This presentation contains certain forward-looking statements related to our plans, objectives and goals,

future events or results, our competitive strengths and business strategies, and trends in our industry. This

presentation does not constitute an offer to sell or any solicitation of an offer to buy any securities.

These forward-looking statements, which are not historical facts, reflect beliefs, assumptions and

expectations of future events or results, taking into account information currently available to our

management and are subject to a number of risks and uncertainties that could cause actual results to differ

materially from those expressed in or implied by such forward-looking statements. 

Assumptions relating to forward-looking statements involve judgments with respect to, among other

things, future economic, competitive and market conditions and future business decisions, all of which are

difficult or impossible to predict accurately, and many of which are beyond our control. 

Therefore, there can be no assurance that the results expressed in or implied by the forward-looking

information will be realized. In light of the significant uncertainties inherent in the forward-looking

information included herein, the inclusion of such information should not be relied upon or regarded as our

representation that any strategy, objectives or other plans will be achieved. For more information on the

factors that could cause our actual results to differ materially from those expressed in or implied by such

forward-looking statements, please see the risks discussed in our public filing with the Securities and

Exchange Commission, including those set forth under “Risk Factors” in our Annual Report on Form 10-K for

the year ended December 31, 2009.

Except or required by applicable law, Xenith Bankshares, Inc. does not undertake to update any forward-

looking statements.

Agenda

•

A Quick Look Back

•

The Investment Opportunity

•

The Virginia Market

•

The First Nine Months

•

Financial Results

•

Strategic Planning

3

A Look Back

4

May 2009

•Fed application

submitted (5/22)

September 2009

•Exam Response (9/10)

November 2009

•Approval

August 2009

•

Waiting for regulatory

exam (8/18)

October 2009

•Additional Information Request

and Commitments (10/9)

•Response delivered (10/15)

•Meeting with Fed (10/26)

•

When we last met in October 2009, we were in the midst of extensive regulatory

delays and were expecting approval at any moment. 

•

We opened for business December 23, 2009.

5

Xenith opened for business with a presence in all areas of Virginia’s ‘Golden Crescent’:

A Look Back

One loan production office (now a branch) in Northern Virginia

Three branches in Suffolk

Headquarters in Richmond

6

The 2009 year-end Balance Sheet reflected Xenith Corporation’s $48 million capital

raise combined with First Bankshares.

A Look Back

Dec. 31, 2009

(000s)

Cash & Cash Equivalents           

35,203

$         

Investments                        

39,125

Loans (Net)                       

102,050

OREO                               

464

Premises & Equipment (Net)        

6,981

Intangible Assets                 

10,670

Other Assets                      

7,098

TOTAL ASSETS                      

201,591

$      

Deposits                           

114,148

$      

Borrowed Funds                    

31,260

Other Liabilities                 

2,111

Total Liabilities

147,519

Equity                             

54,072

TOTAL LIABILITIES & EQUITY    

201,591

$      

The Investment Opportunity

7

While our path to opening was influenced by the events of 2008 and 2009  and the

resulting merger, our fundamental investment thesis and strategy

remain the same.

We believe that there is a compelling opportunity for the creation of a

strong mid-size banking franchise in Virginia.

•The ‘barbell’

market structure has created an attractive middle market opportunity for a

locally-owned and managed institution.

•Current economic

and

banking

conditions

favor

a

new

entrant

with

substantial

capital.

•An experienced management team and board of directors is in place to pursue this market

opportunity.

•Our

model

is

attractive

to

seasoned

bankers

who

desire

to

serve

their

customers

in

an

entrepreneurial, performance-based organization.

•Opportunity to generate organic growth and consider select  acquisitions.

The Virginia Market

8

Virginia remains both demographically and economically a strong market.

State

Total

Population

2010

(actual)

Population

Change

2000 - 2010

(%)

Projected

Change

2010 - 2015

(%)

Total

Households

2010

(actual)

Median

HH Income

2010

($)

HH Income

Change

2000 - 2010

(%)

Projected HH

Income Change

2010 - 2015

(%)

Per Capita

Income

2010

($)

August 2010

Unemploy.

Rate

US

311,212,863

                      10.6

3.85

116,761,140

54,442

29.12

12.39

26,739

9.6

Virginia

7,965,681

                      12.5

3.98

3,045,412

61,347

31.28

14.40

30,153

7.0

Texas

25,268,853

                      21.2

8.53

8,873,478

51,960

30.13

13.35

24,031

8.4

Pennsylvania

12,574,407

                        2.4

0.50

4,950,056

52,723

31.45

13.30

26,585

8.9

Ohio

11,605,005

                        2.2

0.69

4,598,386

52,047

26.95

12.69

25,948

9.7

Georgia

10,014,045

                      22.3

7.48

3,661,527

56,184

31.62

14.24

26,398

10.3

New Jersey

8,822,373

                        4.9

1.18

3,214,726

72,519

31.65

14.71

34,739

9.4

Source: Environmental Systems Research Institute, Inc. (ESRI)

Demographic data is provided by ESRI based primarily on US Census data.

For non-census year data, ESRI uses samples and projections to estimate the demographic data. page.

SNL performs calculations on the underlying data provided by ESRI for some of the data presented on this page.

Note: Unemployment data is not seasonally adjusted.

Source: U.S. Department of Labor

The Virginia Market

9

Virginia employment levels have been consistently strong

compared to national averages.

Source: SNL based on US Dept. of Labor, retrieved October 2010

The Virginia Market

10

Deposits, a proxy for business activity, are heavily concentrated in the Golden Crescent.

Source: SNL Deposit Market Share data by MSA, retrieved September 2010

The Virginia Market

11

73% of Virginia’s deposits are located in the Golden Crescent.

MSA

Deposits

($000)

Percent

Cum.

Percent

Branches

Percent

Cum.

Percent

Average

Deposits /

Branch ($000)

Washington-Arlington-Alexandria, DC-VA-MD-WV

66,685,200

$       

44%

44%

851

32%

32%

78,361

$            

Richmond, VA

25,260,256

17%

61%

384

14%

46%

65,782

Virginia Beach-Norfolk-Newport News, VA-NC

19,583,301

13%

73%

379

14%

60%

51,671

Roanoke, VA

6,479,113

4%

78%

135

5%

65%

47,993

Lynchburg, VA

3,915,419

3%

80%

99

4%

69%

39,550

Charlottesville, VA

3,427,368

2%

83%

72

3%

71%

47,602

Blacksburg-Christiansburg-Radford, VA

2,425,544

2%

84%

68

3%

74%

35,670

Kingsport-Bristol, TN-VA

1,955,482

1%

85%

59

2%

76%

33,144

Winchester, VA-WV

1,884,400

1%

87%

47

2%

78%

40,094

Harrisonburg, VA

1,800,561

1%

88%

55

2%

80%

32,737

Danville, VA

1,663,241

1%

89%

41

2%

82%

40,567

Staunton-Waynesboro, VA

1,203,875

1%

90%

39

1%

83%

30,869

Martinsville, VA

1,200,237

1%

91%

28

1%

84%

42,866

Bluefield, WV-VA

1,111,556

1%

91%

35

1%

85%

31,759

Culpeper, VA

573,662

0%

92%

13

0%

86%

44,128

Unassigned

12,738,556

8%

100%

381

14%

100%

33,435

Grand Total

151,907,771

100%

2,686

100%

56,555

$            

Source: SNL Deposit Market Share data by MSA, retrieved September 2010

The Virginia Market

12

Further, these deposits are concentrated in the hands of a few large players.

The five largest commercial banks account for

66% of all Virginia commercial bank deposits.

Source: SNL Data, as of 3/31/2010

Number of

Institutions

The First Nine Months

Our Focus

13

Since opening, we have been focused on -

•

Creating a credit risk management culture

•

Generating new business

•

Merger integration

•

Building our technology platform

•

Building the infrastructure

14

The single most important task that bankers undertake is the management of credit risk. 

To that end, Xenith has -

–

White paper on ‘credit culture philosophy’

–

Regular meetings

–

All credits >$250,000

–

Commercial Real Estate

–

Government Contracting

–

Risk adjusted

The First Nine Months

Credit Risk Management Culture

A

focused

initiative

on

credit

culture

Weekly

Credit

Committee

meetings

White

papers

for

specialty

lending

areas

Loan

/

relationship

pricing

tool

The First Nine Months

Generating New Business

15

We believe that Xenith’s value proposition has been well-received in the

market.

•

80%+ new business from mega-banks

•

Good mix of C&I / CRE

•

Slowness in economy has reduced loan demand

•

Liquidity has boosted deposit growth

•

The market is competitive for good credits

The First Nine Months

Generating New Business

16

Through June, Gross Loans have grown 17%, and Deposits have grown 30%.

The First Nine Months

Generating New Business

17

We are actively involved in identifying and engaging experienced

relationship

managers who know the market.

Years experience

Richmond

–

5 Relationship Managers

25+

–

1 Treasury Services Officer

20+

Hampton

Roads

–

2 Relationship Managers

20+

–

1 Treasury Services Officer

20+

Northern

Virginia

–

3 Relationship Managers

25+

–

1 Treasury  Services Officer

15+

18

The merger with First Bankshares has gone largely as expected.

•

Deposit retention in Suffolk has been good; total Deposits have grown from

$114 million at year-end to approximately $121 million at June month-end.

•

Suffolk Loan balances have remained steady.

•

The Silverton Participation Portfolio has largely performed as we expected.

•

After an expected initial period of employee skepticism, morale is good, and the

integration of customers has gone well.

The First Nine Months

Merger Integration

The First Nine Months

Building Our Technology Platform

19

Our primary focus was the De Novo installation of the Fidelity Horizons operating

system in April. 

SuffolkFirst was successfully converted to the new platform in

June

-Little customer impact

-Good core functionality/efficiency

-Scalable

Treasury Services product suite is largely in place

Focus on Operations staffing

The First Nine Months

Building The Infrastructure

20

While not readily apparent, it is critical to develop the policies, procedures,

processes and reporting necessary for an effective and efficient

enterprise. 

These infrastructure components are essential in banking to control risk,  satisfy

banking regulatory requirements, and (in Xenith’s case) meet the demands of

being a public company.

•

New Controller

•

SEC Reporting 10K / 10Q’s

•

ALCO Analysis & Reporting

•

Allowance Methodology (ALLL)

•

Primary and redundant technology platform

Financial Results

21

Summary 2    quarter financial results are generally in line with internal expectations.

BALANCE SHEET

Dec-09

Mar-10

Jun-10

Cash & Cash Equivalents           

35,203

$    

10,984

$    

13,597

$    

Investments                        

39,125

71,817

68,895

Loans (Net)                       

102,050

104,045

119,876

OREO                               

464

464

796

Premises & Equipment (Net)       

6,981

6,830

6,881

Intangible Assets                 

10,670

10,640

10,610

Other Assets                      

7,098

7,213

6,831

TOTAL ASSETS                      

201,591

$  

211,993

$  

227,485

$  

Deposits                           

114,148

$  

131,579

$  

148,262

$  

Borrowed Funds                    

31,260

25,001

25,001

Other Liabilities                 

2,111

2,161

2,222

Equity                             

54,072

53,252

52,001

TOTAL LIABILITIES AND EQUITY

201,591

$  

211,993

$  

227,485

$  

INCOME STATEMENT

June 2010 YTD

Interest Income                   

4,632,561

$      

Interest Expense                  

1,022,646

Net Interest Income               

3,609,915

Provision for Loan Losses         

510,000

Net Int. Inc. after Provision

3,099,915

Non-Interest Income               

157,868

Non-Interest Expense             

6,695,356

Net Gains / Losses                

101,076

Income Before Taxes            

(3,336,497)

Income Taxes                      

(294,400)

NET INCOME                        

(3,042,097)

$    

nd

Strategic Planning

The New World Order

22

Since beginning our effort to

launch Xenith in late 2007, the

banking industry has

experienced more turmoil

than anytime since the 1930’s.

With this as background, we

have undertaken, with our

Board, a complete strategic

review.

Strategic Planning Steps

Components

Mission & Objectives

Validate Vision and Mission Statements

Articulate Strategic Objectives

Hypothesis

Identify Probable Strategic Path

(to serve as basis for analytical work below)

Internal & External Analysis

Industry Analysis

Analysis of External Macroenvironment

Internal Analysis of Xenith (SWOT)

Strategy Formulation

Match Firm Strengths to Opportunities in Market

Identify Competitive Advantage

Outline Alternative Strategies

Identify Optimal Strategy

Strategy Implementation

Organization of Firm Resources

Communication of Strategy

Motivation of Staff

Evaluation & Control

Define Parameters to Measure

Define Target Values for Parameters

Measure

Compare Results to Target

Make Necessary Changes

Strategic Planning

The New World Order

23

Take-aways from the planning process include -

•

Virginia remains an attractive market that offers strong growth opportunities.

•

Turmoil has created dislocation and will prompt consolidation.

•

Small banks (<$500 million) will have a difficult time competing.

•

The regulatory environment will remain challenging and place a premium on

strong regulatory relationships.

•

Increased capital requirements will require banks to re-evaluate pricing to earn

adequate returns on equity.

•

The Xenith strategy is unique in Virginia and remains a great opportunity to build

a substantial Virginia bank and  create shareholder value.