Cooperative Bankshares — Investor Presentation (August 2007)
25 slides from Cooperative Bankshares's investor presentation, Aug 14, 2007
Slide 1: Building relationships - Analyst Presentation August 2007
Building relationships for over Analyst Presentation August 2007
Slide 2: Safe Harbor Statement
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 OTHERWI
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
Who We Are Today $891.6 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
Slide 6: History
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 o
Slide 7: Executive Management
Executive Management Name Title Age Experience Frederick Willetts, III Chairman, President & CEO 34 Years O.C. Burrell, Jr. Chief Operating Officer 35 Years Todd L. Sammons, CPA Chief Financial Officer 21 Years Dickson B. Bridger Mortgage Lending 24 Years
Slide 8: Market Analysis
Market Analysis
Slide 9: Footprint: Retail Branches and Mortgage Offices
Footprint Retail Branches Mortgage Offices
Slide 10: Market Analysis: Wilmington, NC
Market Analysis 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
Slide 11: Market Analysis: Wilmington, NC population
Market Analysis 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 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 June 30, 2007 Total Assets $ 891,567 Total Deposits (Increased 88% since 2003) $ 690,798 Total Equity $ 61,365 LTM Net Income $ 8,557 LTM EPS $ 1.29 Book Value per Common Share $ 9.37 LTM ROA 1.01 % LTM ROE 14.74 % Shares Outstandi
Slide 14: Assets ($Millions)
Assets ($Millions) 13.5% compound annual growth $900 $800 $700 $600 $500 $400 $300 2002 $504 2003 $502 2004 $550 2005 $746 2006 $860 Jun 30 $892 2007
Slide 15: Total Net Loans
Total Net Loans ($Millions) 15.2% compound annual growth $800 $750 $700 $650 $600 $550 $500 $450 $400 $350 $300 2002 $417 2003 $408 2004 $457 2005 $642 2006 $758 Jun 30 $787 2007
Slide 16: Loan Composition
Loan Composition Dec. 2002 Equity Lines 4% Multi-Family 4% Commercial Real Estate 22% Comm’l Industrial, Agricultural 3% Consumer 2% Other 0% Construction & Development 13% 1-4 Family 52% Dec. 2006 Equity Lines 3% Multi-Family 2% Commercial Real Estate 21% Comm’l, Industrial, Agricultural 3% Consume
Slide 17: Deposits
Deposits ($Millions) 15.8% compound annual growth $700 $650 $600 $550 $500 $450 $400 $350 $300 2002 $357 2003 $367 2004 $415 2005 $565 2006 $662 Jun 30 $691 2007
Slide 18: Net Income ($000s)
Net Income ($000s) $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 2002 $4,944 2003 $5,404 2004 $4,681 2005 $5,502 2006 $7,640 Jun 30 2007 $4,169
Slide 19: Earnings Per Share
Earnings Per Share* $1.50 $1.00 $0.50 $0.00 2002 $0.77 2003 $0.83 2004 $0.71 2005 $0.84 2006 $1.15 Jun 30 2007 $0.63 * 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
Slide 20: Asset Quality
Asset Quality 2002 2003 2004 2005 2006 June 30, 2007 Non-Performing Assets / Total Assets 0.24 % 0.05 % 0.04 % 0.01 % 0.23 % 0.24 % Non-Performing Loans / Gross Loans1 0.15 % 0.07 % 0.05 % 0.00 % 0.17 % 0.20 % Net Charge Offs / Average Loans 0.08 % 0.06 % 0.02 % 0.01 % 0.11 % 0.02 % 2 Loan Loss Rese
Slide 21: Trading Data
Trading Data
Slide 22: Trading Data
Trading Data Data as of June 30, 2007 Stock Price $ 16.52 Market Capitalization $ 108.2 million LTM P/E 12.81x Dividend Yield 1.21 %
Slide 23: Summary
Summary
Slide 24: Long-Term Strategy
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
Slide 25: Reasons to Invest
Reasons to Invest Experienced management team with knowledge of local markets Largest community bank based in Wilmington, NC MSA Improved financial performance Outstanding asset quality
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