CNB Community Bancorp Inc · OTC:CNBB
CNB Community Bancorp — Community Bancorp — Investor Presentation (November 2006)
42 slides from CNB Community Bancorp's investor presentation, Nov 8, 2006
Slide 1: Community Bancorp Investor Presentation
COMMUNITY BANCORP INVESTOR PRESENTATION
Slide 2: Forward Looking Information
2 Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated
Slide 3: Stock Summary
3 Issuer: Community Bancorp NASDAQ Symbol: CBON Shares Outstanding (9/30/06): 7,396,109 52 Week High/Low (10/30/06): $34.31 to $28.87 per Share Market Capitalization Range: $214 Million to $254 Million Stock Summary SBA Funded Property
Slide 4: Company Overview
4 • Community Bancorp, with $1.1 billion dollars in assets, is the bank holding company for Community Bank of Nevada, one of the largest community banks serving the greater Las Vegas market and Cactus Commerce Bank, serving the greater Phoenix metropolitan area • Provides a complete array of commerc
Slide 5: Acquisition Profile
5 • On October 13, 2006 Community Bancorp announced the completion of the acquisition of Valley Bancorp, effective close of business on October 13, 2006 • The stockholders of Valley Bancorp approved the transaction on October 6, 2006 • The stockholders of Community Bancorp approved the transaction o
Slide 6: Acquisition Profile
6 Acquisition Profile • The total value of the transaction was $137.4 million, including cancellation of options for Valley Bancorp stock • Valley Bancorp shareholders received $46.00 per share of common stock they owned, paid in a consideration mix approximately of 75% Community Bancorp common stoc
Slide 7: Unaudited Pro Forma Combined Balance Sheet
7 Unaudited Pro Forma Combined Balance Sheet As of June 30, 2006 Source: Form S-4 Balance Sheet (in $000s) Community Bancorp Valley Bancorp Pro Forma Adjustment Pro Forma Combined Net Loans 793,598 $ 328,341 $ - 1,121,939 $ Total Assets 1,009,513 440,664 57,625 1,507,802 Total Deposits 793,433 377,5
Slide 8: Unaudited Pro Forma Combined Statement of Income
8 Unaudited Pro Forma Combined Statement of Income For the six months ended June 30, 2006 Source: Form S-4 Income Statement (in $000s) Community Bancorp Valley Bancorp Pro Forma Adjustment Pro Forma Combined Total interest and dividend income 35,959 $ 15,878 $ (977) $ 50,860 $ Net interest income 23
Slide 9: Acquisition Profile
9 Acquisition Profile • Effective September 30, 2006, Community Bancorp acquired 100% of the outstanding common stock of Cactus Commerce Bank, headquartered in Glendale, Arizona • Cactus Commerce Bank, founded in 2003, is a commercial bank with assets of approximately $52 million (9/30/06) serving t
Slide 10: NV Branch Locations and Market Area
10 * According to Clark County Comprehensive Planning, UNLV CBER NV Branch Locations and Market Area Current Locations • Fourteen full service offices located throughout the greater Las Vegas Area • Between 2001 and 2005 Clark County’s population grew by approximately 5% per year compared to the nat
Slide 11: AZ Branch Location and Market Area
11 AZ Branch Location and Market Area Cactus Commerce Bank Locations • One full service office located in Phoenix, AZ (1 planned in Fountain Hills region for 4 th Quarter 2006) • The projections indicate that the top five fastest-growing states between 2000 and 2030 would be 1. Nevada (114%) and 2.
Slide 12: Community Bancorp
Gs COMMUNITY BANCORP
Slide 13: Operating Strategies
13 • Continue to develop low-cost funding sources • Continue to actively manage interest rate and market risks – Closely monitor volume and maturity of our rate sensitive assets to our interest sensitive liabilities • Diversify our revenue source – Increase number of products being sold to each of o
Slide 14: Experienced Management – Community Bancorp
14 * Community Bancorp was founded in 2002 Management Position Edward M. Jamison Lawrence K. Scott Cathy Robinson Tom McGrath Barry Hulin Chairman, President & Chief Executive Officer EVP and Chief Operating Officer EVP and Chief Financial Officer EVP and Chief Risk Manager EVP and Corporate Relatio
Slide 15: Experienced Management – Community Bank of Nevada
15 * Community Bank of Nevada was founded in 1995 Management Position Edward M. Jamison Lawrence K. Scott Cathy Robinson Don F. Bigger Bruce Ford Founder and Chief Executive Officer President and Chief Operating Officer EVP and Chief Financial Officer EVP and Chief Credit Administrator EVP and Chief
Slide 16: Experienced Management – Cactus Commerce Bank
16 Management Position Jerry Ernst Kathy Gimbel President and Chief Executive Officer EVP and Chief Financial Officer Years of Experience Experienced Management – Cactus Commerce Bank * Cactus Commerce Bank was founded in 2003 31+ 30+
Slide 17: Growth Strategy
17 • To capitalize on organic growth opportunities in Las Vegas and Phoenix – Open the 15 th branch for Community Bank of Nevada in the northwest Las Vegas area for the second quarter 2007 and plans to open two additional branches per year through 2008 – Open the 2 nd branch in the greater Phoenix a
Slide 18: Our Market Place – Las Vegas, NV
18 0 200 400 600 800 1000 1200 1400 1600 1800 2000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Clark County Total Population (000) 1 0 4 0 1 2 4 6 1 3 2 1 1 4 2 8 1 4 9 8 1 5 7 8 1 6 4 1 1 7 4 7 1 8 1 5 1 1 8 8 1 1 1 9 Source: Clark County ComprehensivePlan- 2006 & 2007 are fore
Slide 19: Our Market Place – Las Vegas, NV
19 Our Market Place – Las Vegas, NV $7.0 Billion Project MGM CityCentre $1.6 Billion Project Las Vegas Sands Corp. The Palazzo $1.7 Billion Project $4.0 Billion Project Boyd Gaming Echelon Resort Encore at Wynn Las Vegas TOTAL CONSTRUCTION COSTS - $19.3 BILLION $5.0 Billion Project Harrah’s Entertai
Slide 20: Economic Drivers – Las Vegas, NV
20 Economic Drivers – Las Vegas, NV
Slide 21: Our Market Place – Phoenix, AZ
21 0 500 1000 1500 2000 2500 3000 3500 4000 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Greater Phoenix Total Population (000) 2 6 3 5 2 9 1 3 3 0 2 7 3 1 9 2 3 2 5 9 3 3 9 7 3 5 2 4 3 6 4 9 3 7 6 4 2 8 0 6 2 7 2 1 Source: GPEC- 2006 & 2007 are forecasts; FDIC Our Market Place – Phoe
Slide 22: Our Market Place- Las Vegas, NV & Phoenix, AZ
22 Our Market Place- Las Vegas, NV & Phoenix, AZ 47.90 3 Orlando, FL 2.44 4 4.70 4 19.92 15 Austin, TX 1.90 9 4.78 3 7.18 34 Naples, FL 5.73 1 6.24 1 05-’10 (000’s) 05-’10 Rank MSA 00-’05 (%) 00-’05 Rank 05-’10 (%) 05-’10 Rank Absolute Annual Growth Annual Growth Rate IRR-Viewpoint 2006 Integra Real
Slide 23: Growth Characteristics
23 *Growth percentage inset in state outline is projected 5-year growth Source: SNL DataSource Growth Characteristics 24.97 25.39 50,887 13.79 14.65 5,882,500 Arizona 18.49 19.33 53,239 20.82 22.53 2,448,536 Nevada Projected HH Income Change 2005-2010 (%) HH Income Change 2000-2005 (%) Medium HH Inc
Slide 24: Migration by State
24 Migration by State 74.3 316,148 112.9 480,272 187.2 796,420 Arizona 2 151.5 233,934 150.3 232,189 301.8 466,123 Nevada 1 Arizona Migration Positive net migration with less than 30,000 gross migration Negative net migration Largest source of net migration Other major sources of net migration (>30,
Slide 25: Financial Performance
COMMUNITY BANCORP. FINANCIAL PERFORMANCE
Slide 26: Strong Asset Growth
26 $573,961 $463,431 $400,571 ($000) $892,708 CAGR = 32% $1,009,513 2003 2002 2004 3Q 2006 Strong Asset Growth 2005 3Q 06 As of 12/31/05 $892,708 1H 06 $1,121,565* *Includes Cactus Commerce Bank, not Valley Bancorp
Slide 27: Loan Growth
27 $806,873 CAGR = 35.3% ($000) $663,407 $350,082 $293,535 $403,270 2005 2003 2002 2004 3Q 2006 Loan Growth $912,805* $663,407 3Q 06 As of 12/31/05 1H 06 *Includes Cactus Commerce Bank, not Valley Bancorp
Slide 28: Loan Portfolio
28 As of September 30, 2006* Loan Portfolio Other 15% Retail 37% Office 38% Industrial 10% Construction 55% Commercial Real Estate 26% Consumer & Other 1% Residential Real Estate 4% Commercial 14% Residential 32% Other 3% Industrial 16% Office 19% Retail 30% *Includes Cactus Commerce Bank, not Valle
Slide 29: Loan Portfolio
29 As of June 30, 2006* Construction 55% Commercial Real Estate 26% Consumer & Other 1% Residential Real Estate 3% Commercial 15% Loan Portfolio *Does not include Cactus Commerce Bank or Valley Bancorp Other 17% Retail 28% Office 34% Industrial 21% Residential 36% Other 2% Industrial 16% Office 19%
Slide 30: Deposit Growth
30 ($000) CAGR = 26.5% $725,088 $403,713 $476,252 $351,584 2005 2003 2002 2004 3Q 2006 Deposit Growth $793,433 $849,526* 3Q 06 As of 12/31/05 1H 06 $725,008 *Includes Cactus Commerce Bank, not Valley Bancorp
Slide 31: Deposit Mix
31 Interest Bearing Demand 4% Money Market 42% Savings 2% Time Certificates 21% Wholesale Deposits 10% Non-interest Bearing Demand 21% Deposit Mix As of September 30, 2006* *Includes Cactus Commerce Bank, not Valley Bancorp
Slide 32: Deposit Mix
32 Interest Bearing Demand 5% Money Market 43% Savings 1% Time Certificates 20% Wholesale Deposits 9% Non-interest Bearing Demand 22% Deposit Mix As of June 30, 2006* * Does not include Cactus Commerce Bank or Valley Bancorp
Slide 33: Credit Quality
33 ($000) 0.14% 0.13%* 1.00% 0.78% 1.99% 2005 2003 2002 2004 3Q 2006 Credit Quality NPAs to Total Loans & OREO *Includes Cactus Commerce Bank, not Valley Bancorp
Slide 34: Gains in Net Income
34 ($000) $10,065 $3,763 $5,215 $5,421 $3,425 2005 2003 2002 2004 3Q 2006 Gains in Net Income $4,725 $10,245* $3,057 *Excludes Cactus Commerce Bank and Valley Bancorp
Slide 35: Consistently Profitable ROE
35 11.4% 12.1%* 17.8% 15.1% 19.1% 2005 2003 2002 2004 3Q 2006 Consistently Profitable ROE *Excludes Cactus Commerce Bank and Valley Bancorp
Slide 36: Balance Sheet
36 Balance Sheet (in $000s) 3Q 2006* 2005 2004 2003 2002 Assets 1,121,565 $ 892,708 $ 573,961 $ 463,431 $ 400,571 $ Gross Loans 912,805 663,407 403,270 350,082 293,535 Allowance for Loan Losses 11,150 8,117 6,133 5,409 4,688 Deposits 849,526 725,088 476,252 403,713 351,584 Equity 118,175 106,749 77,
Slide 37: Income Statement
37 Income Statement *Excludes Cactus Commerce Bank and Valley Bancorp Income Statement (in $000s, except per share data) 3Q 06* 2Q 06 1Q 06 4Q 05 3Q 05 2Q 05 1Q 05 Interest and dividend income 20,727 $ 19,263 $ 16,696 $ 15,394 $ 12,561 $ 9,676 $ 8,706 $ Interest expense 8,388 6,866 5,419 4,703 3,326
Slide 38: EPS - Diluted
38 CAGR = 17% $1.42 $0.50 $1.10 $1.10 $0.46 2005 2003 2002 2004 2006 EPS - Diluted $1.01 $1.37* $0.41 *Excludes Cactus Commerce Bank and Valley Bancorp
Slide 39: Asset Quality
39 (1) Non-performing loans are defined as loans that are past due 90 days or more plus loans placed in non-accrual status and restructured loans. Asset Quality *Includes Cactus Commerce Bank, not Valley Bancorp 3Q 06* Non-performing loans to total loans (1) 0.13% Non-performing assets to total asse
Slide 40: Summary
40 • Loan growth of 42.9% year-over-year • Quarter net income up 13.8% year-over-year • Quarter diluted earnings per share up 7.9% year-over-year • Deposit growth of 25.1% year-over-year ($mlns) 2005 2004 2003 2006* 2005 Assets $892.7 $574.0 $463.4 $1,121.6 $842.6 Goodwill and Core Deposit Intangibl
Slide 41: Why invest with us?
41 • Excellent expansion opportunities in both Las Vegas, Phoenix and other high growth markets • Consistent, high performance institution – Five year CAGR of assets and net income of 26% and 24% respectively* – Five year average ROE and ROA of 15.7% and 1.21% respectively* • Focus on business banki
Slide 42: Community Bancorp
COMMUNITY BANCORP INVESTOR PRESENTATION
Community Bancorp — Investor Presentation (November 2006) on 6ix