Cooperative Bankshares — Investor Presentation (August 2008)
25 slides from Cooperative Bankshares's investor presentation, Aug 19, 2008
Slide 1: Analyst Presentation August 2008
100 years Exhibit 99.1 Analyst Presentation August 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
$973.7 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 6 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 36 Years O.C. Burrell, Jr. Chief Operating Officer 36 Years Todd L. Sammons, CPA Chief Financial Officer 22 Years Dickson B. Bridger Mortgage Lending 25 Years
Slide 8: Market Analysis
Market Analysis
Slide 9: Origination Offices and Cooperative Bank Offices
Lean Origination Offices Cooperative Bank Offices a Sccotimbusy Newwsnever North Carolina Brunswick | BY ory eae South Carolina
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 Significant expansion of air service at Wilmington International Airport Growth in tourism, retirees and housing Attraction of major employers such as PPD, GE, Ve
Slide 11: Market Analysis: Wilmington, NC Population
Wilmington, NC 2007 MSA population of 339,511 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 June 30, 2008 Total Assets (Increased 94% since 2003) $973,681 Total Deposits (Increased 99% since 2003) $731,583 Total Equity $63,607 LTM Net Income $4,314 LTM EPS $0.65 Book Value per Common Share $9.66 LTM ROA 0.46% LTM ROE 6.64
Slide 14: Assets ($Millions)
$502 $550 $746 $860 $927 $974 $300 $400 $500 $600 $700 $800 $900 $1,000 June 30 15.9% compound annual growth Assets ($Millions)
Slide 15: Total Net Loans ($Millions)
$408 $457 $642 $758 $815 $857 $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 $800 $850 $900 June 30 17.9% compound annual growth Total Net Loans ($Millions)
Slide 16: Net Charge Offs vs. Provisions
Net Charge Offs vs. Provisions ($Thousands) 2,485 2,235 1,450 1,212 3,325 - 1,000 1,250 1,500 1,750 2,000 2,250 2,500 2,750 3,000 3,250 3,500 June 30, Net Charge Offs Provisions
Slide 17: Loan Composition
1-4 Family 51% Comm'l Industrial, Agricultural 4% Consumer 1% Other 0% Commercial Real Estate 23% Equity Lines 4% Multi-Family 3% Construction & Development 14% Dec. 2003 Dec. 2007 Equity Lines 4% Multi-Family 2% 1-4 Family 48% Construction & Development 27% Commercial Real Estate 15% Other 0% Consu
Slide 18: Deposits ($Millions)
$367 $415 $565 $662 $715 $732 $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 June 30 16.6% compound annual growth Deposits ($Millions)
Slide 19: Net Income ($000s)
$5,404 $4,681 $5,502 $7,640 $8,081 $402 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 Thru June 30 Net Income ($000s)
Slide 20: Earnings Per Share
$0.83 $0.71 $0.84 $1.15 $1.22 $0.06 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 Thru June 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%
Slide 21: Trading Data
Trading Data
Slide 22: Trading Data
Trading Data Data as of June 30, 2008 Stock Price $6.90 Stock Price as a percentage of book value 71.4% Stock Price as a percentage of tangible book value 78.6% Market Capitalization $45.4 million LTM P/E 10.62x Dividend Yield 2.90%
Slide 23: Summary
Summary
Slide 24: Long-Term Strategy
Continue to build profitable relationships with new and existing customers Return to normal profitability Improve asset quality Continue to expand in current and adjacent markets including 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 10.6* substantially below average 12.9 for Southeast community banks Traditionally good asset quality Stock price is 78.6%* of tangible book value Due to insider’s ownership, m
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