CNB Community Bancorp Inc · OTC:CNBB
CNB Community Bancorp — Community Bancorp — Q2 2006 Earnings Presentation
39 slides from CNB Community Bancorp's earnings presentation, Aug 4, 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: Securities Law Matters
3 This Presentation may be deemed to be solicitation material in respect to the proposed transaction between Community Bancorp and Valley Bancorp pursuant to an Agreement to Merge and Plan of Reorganization, dated as of June 28, 2006 by and among Community Bancorp and Valley Bancorp. While this Pres
Slide 4: Stock Summary
4 Issuer: Community Bancorp NASDAQ Symbol CBON Shares Outstanding (6/30/06): 7,387,069 52 Week High/Low: $28.87 to $34.75 per Share Market Capitalization Range: $213 Million to $257 Million Stock Summary SBA Funded Property
Slide 5: Company Overview
5 • Community Bancorp, with one 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 • Profitable every year since 1995 • Provides a complete array of commercial banking products and services to s
Slide 6: Acquisition Profile: Valley Bancorp
6 • On June 28, 2006 Community Bancorp announced the signing of a definitive agreement to acquire all of the common stock and equivalents of the Las Vegas, NV based Valley Bancorp (Nasdaq: VLLY) for approximately $137 million in stock and cash • Shareholders of Valley Bancorp will have the option to
Slide 7: Acquisition Profile
7 • The combined institutions will have approximately $1.5 billion in assets and 15 branches serving the growing communities of Clark and Nye Counties • Founded in 1998, Valley Bank is the wholly owned commercial bank subsidiary of Valley Bancorp • They have a network of five branches in the Souther
Slide 8: Acquisition Profile: Cactus Commerce Bank
8 Acquisition Profile • On July 20, 2006 Community Bancorp announced the signing of a definitive agreement to purchase all of the outstanding common stock of Glendale, Arizona based Cactus Commerce Bank for approximately $13 million in cash • Cactus Commerce Bank, founded in 2003, is a commercial ba
Slide 9: Nevada Branch Locations and Market Area
9 * According to Clark County Comprehensive Planning, UNLV CBER NV Branch Locations and Market Area Valley Bancorp Locations Current Locations • Ten full service offices located throughout the greater Las Vegas Area (15 at close of Valley Bancorp merger) • Between 2001 and 2005 Clark County’s popula
Slide 10: Arizona Branch Location and Market Area
10 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 Nevada (114%), Arizona (
Slide 11: Community Bancorp
Gs COMMUNITY BANCORP
Slide 12: Operating Strategies
12 • Continue to enhance our risk management • Maintain high asset quality by continuing to utilize rigorous loan underwriting standards and credit risk management practices • Continue to improve our efficiency ratio • Continue to actively manage interest rate and market risks – Closely monitor volu
Slide 13: Experienced Management – Community Bancorp
13 * Community Bancorp was founded in 2002 Management Position Edward M. Jamison Lawrence K. Scott Cathy Robinson Charles McCluer Chairman, President & Chief Executive Officer EVP and Chief Operating Officer EVP and Chief Financial Officer SVP and Chief Information Officer Years of Experience 33+ 23
Slide 14: Experienced Management – Community Bank of Nevada
14 * Community Bank of Nevada was founded in 1995 Management Position Edward M. Jamison Lawrence K. Scott Cathy Robinson Don F. Bigger Bruce Ford Tom McGrath Founder and Chief Executive Officer President and Chief Operating Officer EVP and Chief Financial Officer EVP and Chief Credit Administrator E
Slide 15: Growth Strategy
15 • To capitalize on growth opportunities in Las Vegas, Phoenix and other rapidly expanding markets – Acquire other community banks or organize de novo banks in markets that offer regional continuity, such as the greater Las Vegas and Phoenix areas or similar high-growth markets in California – Ope
Slide 16: Our Market Place – Las Vegas, NV
16 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 Comprehensive Plan- 2006 & 2007 are for
Slide 17: Our Market Place – Las Vegas, NV
17 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 18: Our Market Place – Phoenix, AZ
18 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 19: Our Market Place – Las Vegas, NV & Phoenix, AZ
19 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 20: Growth Characteristics
20 *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 21: Migration by State
21 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 22: Financial Performance
COMMUNITY BANCORP FINANCIAL PERFORMANCE
Slide 23: Strong Asset Growth
23 $573,961 $463,431 $400,571 ($000) $892,708 CAGR = 23% $1,009,513 2003 2002 2004 1H 06 Strong Asset Growth 2005 1H 06 As of 12/31/05 $960,192 $892,708 1Q 06
Slide 24: Loan Growth
24 $806,873 CAGR = 25% ($000) $663,407 $350,082 $293,535 $403,270 2005 2003 2002 2004 1H 06 Loan Growth $762,175 $663,407 1H 06 As of 12/31/05 1Q 06
Slide 25: Loan Portfolio
25 As of June 30, 2006 Construction 55% Commercial Real Estate 26% Consumer & Other 1% Residential Real Estate 3% Commercial 15% Loan Portfolio
Slide 26: Deposit Growth
26 ($000) CAGR = 20% $725,088 $403,713 $476,252 $351,584 2005 2003 2002 2004 1H 06 Deposit Growth $793,433 $747,540 1H 06 As of 12/31/05 1Q 06 $725,008
Slide 27: Deposit Mix
27 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
Slide 28: Credit Quality
28 ($000) 0.14% 0.21% 1.00% 0.78% 1.99% 2005 2003 2002 2004 1H 06 Credit Quality NPAs to Total Loans & OREO
Slide 29: Gains in Net Income
29 ($000) $10,065 $3,763 $5,215 $5,421 $3,425 2005 2003 2002 2004 1H 06 Gains in Net Income $4,725 $7,188
Slide 30: Consistently Profitable ROE
30 11.4% 13.0% 17.8% 15.1% 19.1% 2005 2003 2002 2004 1H 06 Consistently Profitable ROE
Slide 31: Balance Sheet
31 Balance Sheet (in $000s) 1H 06 2005 2004 2003 2002 Assets 1,009,513 $ 892,708 $ 573,961 $ 463,431 $ 400,571 $ Gross Loans 806,873 663,407 403,270 350,082 293,535 Allowance for Loan Losses 9,730 8,117 6,133 5,409 4,688 Deposits 793,433 725,088 476,252 403,713 351,584 Equity 114,172 106,749 77,553
Slide 32: Income Statement
32 Income Statement (in $000s, except per share data) 2Q 06 1Q 06 4Q 05 3Q 05 2Q 05 1Q 05 Interest and dividend income 19,263 $ 16,696 $ 15,394 $ 12,561 $ 9,676 $ 8,706 $ Interest expense 6,866 5,419 4,703 3,326 2,306 2,176 Net interest income 12,397 11,277 10,691 9,235 7,370 6,530 Provision for loa
Slide 33: EPS - Diluted
33 CAGR = 20% $1.42 $.50 $1.10 $1.10 $0.46 2005 2003 2002 2004 1H 06 EPS - Diluted $1.01 $.96
Slide 34: Asset Quality
34 (1) Non-performing loans are defined as loans that are past due 90 days or more plus loans placed in non-accrual status and restructured loans. (2) Non-performing assets are defined as loans that are past due 90 days or more, non-accrual loans plus other real estate owned. 1H 06 Non-performing lo
Slide 35: Summary
35 • Loan growth of 71.3% year-over-year • Quarter net income up 86.3% year-over-year • Quarter diluted earnings per share up 72.4% year-over-year • Deposit growth of 57.4% year-over-year ($mlns) 2005 2004 2003 2006 2005 Assets $892.7 $574.0 $463.4 $1,009.5 $651.1 Goodwill and Core Deposit Intangibl
Slide 36: Highlights
36 Category 1H 06 Deposits 793,433 $ 45,893 $ 289,371 $ Loans 806,873 $ 44,698 $ 335,766 $ ($000) Highlights Category 2Q 06 Net Income 3,763 $ 338 $ 1,743 $ Net Interest Margin 5.35% -0.04% 0.26% Revenue 12,927 $ 1,122 $ 5,138 $ 6.1% 57.4% 5.9% 71.3% From 1H 05 From 1Q 06 Actual Change Change 10.0%
Slide 37: Total Assets and Earnings
37 Financials $41,642 $440,664 $1,009,513 Total Assets $60,000 $3,640,000 $7,188,000 Net Income Cactus Commerce Bank Valley Bancorp Community Bancorp As of June 30, 2006 Unaudited Total Assets and Earnings Source: Community Bancorp- Earnings Release 2Q 06; Valley Bancorp- Earnings Release 2Q 06; Cac
Slide 38: Why invest with us?
38 • Excellent expansion opportunities in both Las Vegas and other high growth markets • Consistent, high performance institution – Five year CAGR of assets and net income of 24% and 26% respectively – Five year average ROE and ROA of 15.7% and 1.21% respectively • Focus on business banking and tota
Slide 39: Community Bancorp
COMMUNITY BANCORP. INVESTOR PRESENTATION