Cooperative Bankshares — Investor Presentation (February 2008)
25 slides from Cooperative Bankshares's investor presentation, Feb 11, 2008
Slide 1: Analyst Presentation, February 2008
100 years Exhibit 99.1 Analyst Presentation February 2008 Building relationships for over
Slide 2: Safe Harbor Statement
THIS PRESENTATION, INCLUDING ALL DOCUMENTS INCORPORATED HEREIN BY REFERENCE, CONTAINS FORWARD-LOOKING STATEMENTS. ADDITIONAL WRITTEN OR ORAL FORWARD- LOOKING STATEMENTS MAY BE MADE BY THE COMPANY FROM TIME TO TIME IN FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION OR OTHERWISE. THE WORDS "BELIEV
Slide 3: Agenda
Agenda Overview of Cooperative Bankshares Market Area Financial Highlights Trading Data Summary
Slide 4: Overview of Cooperative Bankshares
Overview of Cooperative Bankshares
Slide 5: Who We Are Today
$926.7 million bank holding company headquartered in Wilmington, NC Subsidiaries: Cooperative Bank and Lumina Mortgage Company 110-year operating history in Eastern NC Traded on NASDAQ National Market under the symbol “COOP” 21 financial centers and 5 loan offices in North Carolina (including Lumina
Slide 6: History
Cooperative Bank formed in 1898 as a mutual thrift Converted to stock savings bank in 1991 Formed holding company in 1994 Acquired Lumina Mortgage in 2002 Adopted a North Carolina commercial bank charter in 2002 Opened four new financial centers in 2003 (two in December) Issued $15 million of trust
Slide 7: Executive Management
Name Title Age Experience Executive Management Frederick Willetts, III Chairman, President & CEO 35 Years O.C. Burrell, Jr. Chief Operating Officer 36 Years Todd L. Sammons, CPA Chief Financial Officer 21 Years Dickson B. Bridger Mortgage Lending 25 Years
Slide 8: Market Analysis
Market Analysis
Slide 9: Loan Origination Offices and Cooperative Bank Offices
Loan Origination Offices Cooperative Bank Offices & columbus NewHanover OPERATIVE ARI ANI
Slide 10: Wilmington, NC
Wilmington, NC Southeastern coastal metropolitan area Significant economic benefit of the 1990 expansion of Interstate I-40 to Wilmington Growth in tourism, retirees and housing Attraction of major employers such as PPD, GE, Dupont, Verizon and Corning Largest employer – New Hanover Regional Medical
Slide 11: Wilmington, NC
Wilmington, NC 2006 MSA population of 326,000 Ranked among top 5% of MSAs for population growth by percentage (37.2%) from 1990 to 2000 Population growth expected to nearly double the national average over the next five years Household income up 68% since 1989 Market Analysis MSA region includes New
Slide 12: Financial Highlights
Financial Highlights
Slide 13: Financial Snapshot
Financial Snapshot Dollars in thousands except per share data, as of December 31, 2007 Total Assets (Increased 85% since 2003) $926,823 Total Deposits (Increased 95% since 2003) $714,892 Total Equity $65,177 LTM Net Income $8,081 LTM EPS $1.22 Book Value per Common Share $9.94 LTM ROA 0.91% LTM ROE
Slide 14: Assets ($Millions)
$502 $550 $746 $860 $927 $300 $400 $500 $600 $700 $800 $900 $1,000 16.6% compound annual growth Assets ($Millions)
Slide 15: Total Net Loans ($Millions)
$408 $457 $642 $758 $815 $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 $800 $850 18.9% compound annual growth Total Net Loans ($Millions)
Slide 16: Loan Composition
1-4 Family 51% Comm'l Industrial, Agricultural 4% Consumer 1% Other 0% Commercial Real Estate 23% Equity Lines 4% Multi-Family 3% Construction & Development 14% Dec. 2003 Dec. 2007 Equity Lines 4% Multi-Family 2% 1-4 Family 48% Construction & Development 27% Commercial Real Estate 15% Other 0% Consu
Slide 17: Deposits ($Millions)
$367 $415 $565 $662 $715 $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 18.1% compound annual growth Deposits ($Millions)
Slide 18: Net Income ($000s)
$5,404 $4,681 $5,502 $7,640 $8,081 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 Net Income ($000s)
Slide 19: Earnings Per Share
$0.83 $0.71 $0.84 $1.15 $1.22 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 Earnings Per Share* * Per share information is computed based on the weighted average number of dilutive shares outstanding, after giving retroactive effect to the two 3-for-2 stock splits in the form of a 50% stock dividend dec
Slide 20: Asset Quality
2007 2006 2005 2004 2003 Asset Quality 1. Gross Loans do not include Loans Held For Sale. 155.7% 600.8% 21,134.4% 2,102.9% 1,291.0% Loan Loss Reserves / Non-Performing Loans 1.07% 1.02% 1.05% 0.96% 0.85% Loan Loss Reserves / Gross Loans¹ 0.08% 0.11% 0.01% 0.01% 0.06% Net Charge Offs / Average Loans
Slide 21: Trading Data
Trading Data
Slide 22: Trading Data
Trading Data Data as of December 31, 2007 Stock Price $11.80 Market Capitalization $77.3 million LTM P/E 9.67x Dividend Yield 1.69%
Slide 23: Summary
Summary
Slide 24: Long-Term Strategy
Continue transition to community bank Explore acquisitions in existing and adjoining markets Continue to increase profitability Maintain high asset quality Expand into Coastal South Carolina Long-Term Strategy
Slide 25: Reasons to Invest
Experienced management team with knowledge of local markets Largest community bank based in Wilmington, NC MSA P/E ratio of 9.67* substantially below average 14.8 for NC community banks Asset quality * as of 12/31/07 Reasons to Invest
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