Cooperative Bankshares — Investor Presentation (November 2007)
25 slides from Cooperative Bankshares's investor presentation, Nov 2, 2007
Slide 1: Analyst Presentation, November 2007
100 years Exhibit 99.1 Analyst Presentation November 2007 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
$922.0 million bank holding company headquartered in Wilmington, NC Subsidiaries: Cooperative Bank and Lumina Mortgage Company 109-year operating history in Eastern NC Traded on NASDAQ National Market under the symbol “COOP” 21 financial centers and 4 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 Opened four new financial centers in 2003 (two in December) Issued $15 million of trust prefe
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: Footprint
Footprint Retail Branches Mortgage Offices
Slide 10: Market Analysis: 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: Market Analysis: 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 September 30, 2007 Total Assets $921,965 Total Deposits (Increased 93% since 2003) $707,897 Total Equity $63,484 LTM Net Income $8,385 LTM EPS $1.26 Book Value per Common Share $9.69 LTM ROA 0.97% LTM ROE 14.11% Shares Outstanding
Slide 14: Assets ($Millions)
$504 $502 $550 $746 $860 $922 $300 $400 $500 $600 $700 $800 $900 $1,000 Sept 30 13.6% compound annual growth Assets ($Millions)
Slide 15: Total Net Loans ($Millions)
$417 $408 $457 $642 $758 $808 $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 $800 $850 Sept 30 14.9% compound annual growth Total Net Loans ($Millions)
Slide 16: Loan Composition
1-4 Family 52% Comm'l Industrial, Agricultural 3% Consumer 2% Other 0% Commercial Real Estate 22% Equity Lines 4% Multi-Family 4% Construction & Development 13% Dec. 2002 Dec. 2006 Equity Lines 3% Multi-Family 2% 1-4 Family 48% Construction & Development 22% Commercial Real Estate 21% Other 0% Consu
Slide 17: Deposits ($Millions)
$357 $367 $415 $565 $662 $708 $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 Sept 30 15.5% compound annual growth Deposits ($Millions)
Slide 18: Net Income ($000s)
$4,944 $5,404 $4,681 $5,502 $7,640 $6,276 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 Sept 30 Net Income ($000s)
Slide 19: Earnings Per Share
$0.77 $0.83 $0.71 $0.84 $1.15 $0.95 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 Sept 30 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% stoc
Slide 20: Asset Quality
Sept 30, 2007 2006 2005 2004 2003 2002 Asset Quality 1. Gross Loans do not include Loans Held For Sale. 2. Annualized 104.9% 1.07% 0.04% 2 1.02% 1.02% 600.8% 1.02% 0.11% 0.17% 0.23% 21,134.4% 2,102.9% 1,291.0% 502.9% Loan Loss Reserves / Non-Performing Loans 1.05% 0.96% 0.85% 0.74% Loan Loss Reserve
Slide 21: Trading Data
Trading Data
Slide 22: Trading Data
Trading Data Data as of September 30, 2007 Stock Price $16.94 Market Capitalization $110.9 million LTM P/E 13.44x Dividend Yield 1.18%
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 Improved financial performance Asset quality Reasons to Invest
Cooperative Bankshares — Investor Presentation (November 2007) on 6ix