EX-99 3 j1516_ex99.htm EX-99

Exhibit 99

 

 

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By The Numbers

 

[LOGO]

 



 

Safe Harbor

 

This presentation contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Factors that could cause actual results to differ from the results discussed in the forward-looking statements include, but are not limited to: risks of loans and investments, including dependence on local economic conditions; competition for the company’s customers from other providers of financial services; possible adverse effects of changes in interest rates; execution and implementation of the series of strategic initiatives announced in 2001; balance sheet and capital ratio risks related to the share repurchase program; risks related to the company’s acquisition strategy, including risks of adversely changing results of operations and factors affecting the company’s ability to consummate further acquisitions, and other risks detailed in the company’s filings with the Securities and Exchange Commission, all of which are difficult to predict and many of which are beyond the control of the company.

 



 

Purpose & Vision

 

Purpose:

 

Improving Lives Through Financial SolutionsSM

 

Key Concepts of Vision:

 

              Diversified financial services

 

              Creating value

 



 

CFBX At A Glance

 

              Traded on Nasdaq National Market®

 

              Market Cap = $1 billion

 

              136 locations in 12 states

 

              Total assets = $5.7 billion

 

Market Price Range

 

Q1 ‘03

 

High

 

$

27.23

 

Low

 

$

24.35

 

Close

 

$

25.55

 

Average Daily Volume

 

159,885

 

 



 

Current Financial Center Markets

 

[MAP]

 



 

2002 By the Numbers

 

                  Record diluted EPS of $1.97

 

                  Net margin of 5.33%

 

                  Return on average common equity of 21.76%

 

                  Return on average assets of 1.40%

 

                  Two dividend increases = ­ 17%

 

                  Annualized total shareholder return of 6.12%

 



 

Behind the Numbers

 

                  Diversified revenue sources

 

                  Financial solutions focus

 

                  Disciplined approach to pricing

 

                  Flexible operating model

 

                  Centralized support processes

 

                  Sound financials

 

                  Track record of enhancing shareholder value

 



 

Compelling Growth Vehicles

 

Our business is creating financial solutions

 

                  Insurance products

 

                  Investment services

 

                  Small Business Administration division

 

                  Indirect consumer lending

 

                  Community First Mortgage, LLC

 



 

Online Personal Banking Customers

 

[CHART]

 



 

Online Business Banking Customers

 

[CHART]

 



 

Check Card Growth

 

Check Card Net Revenue

 

[CHART]

 



 

Flexible Operating Model

 

One size does not fit all.

 

Community Financial Centers

 

              28 in 4 states

 

              Primary focus on retail opportunities

 

              83.7% growth in investment sales in 2002

 

              21% increase in net controllable revenue per FTE in 2002

 

              19% increase in sales/FTE/week

 



 

Regional Financial Centers

 

              108 in 12 states

 

              Focus on retail & broader business opportunities

 

              Match resources to market opportunities

 

              Banking, insurance & investment services

 



 

Market Extension Strategy

 

One model does not match all opportunities

 

                  Factors to consider:

 

                 Market size and demographics

 

                 Credit complexity

 

                 Market growth potential

 

                 Market opportunities

 

                  Different models = Different skills

 

                  Limit to current footprint

 



 

Growth Targets

 

Grow the franchise, footprint and client base through market extensions.

 

                  30 new offices by 2007

 

                  3 new offices in 2003

 

                  Flexible model with “modules”

 

                  Cost structure makes extension locations profitable more quickly

 



 

Financial Solutions Offered

 

                  Basic Product Modules

 

             Deposits

 

             Retail Loans

 

                  Direct

 

                  Indirect

 

                  Mortgage

 

             Investments

 

             Insurance

 



 

Match Market Opportunities

 

                  Additional Product Modules

 

                 Commercial/SBA

 

                 Commercial Real Estate

 

                 Construction

 

                 Wealth Management

 

                 Cash Management

 



 

Strength in Numbers

 

[GRAPHIC]

 



 

Disciplined Credit Approach

 

              Commitment to credit quality

 

              Focus on quality versus quantity

 

              Non-performing assets

 

              Net charge-offs

 

              Special assets group

 



 

The State of CFB Credit

 

A quick industry & CFBX snapshot

 

 

 

CFBX

 

SNL*

 

NPA/TA

 

0.50

%

0.60

%

Net Losses/Loans

 

0.33

%

0.39

%

Reserve Coverage

 

245

%

281

%

NPA/Loans

 

0.81

%

0.94

%

ALL/Loans

 

1.57

%

1.50

%

 

Source: SNL Financial - 2002 Average

 


* Coverage Universe of 454 Banks

 



 

Loan Center

 

              Focus on people and process

 

              Build client relationships

 

              Enhanced productivity

 

              Leverage core competencies

 

              Originated $248 million in loans in 2002

 

              Completion of direct consumer and commercial expected in 4Q 2003

 



 

Business Banking Opportunities

 

              Ranked 40th in nation by number of SBA 7(a) loans processed, compared to 60th in 2001

 

              $2.8 million contributed to 2002 earnings from SBA premiums

 

              $61.1 million in SBA loans funded in 2002, compared to $32.2 million in 2001

 

              79% growth year-over-year

 



 

Community First Mortgage, LLC

 

              Joint venture offers customers broader line of mortgage products

 

              71 home mortgage consultants

 

              Scottsdale market extension

 

              239% increase in monthly volume closed - January - December 2002

 

              Every new mortgage represents opportunity to expand the client relationship

 



 

Diversified Financial Services

 

Proven financial solutions strategy

 

              Insurance revenues

 

                  $4.3 million in 1995

 

                  $13.8 million in 2002

 

                  18.2% compound annual growth rate*

 

              Investment revenues

 

                  $273,000 in 1995

 

                  $9.5 million in 2002

 

                  66.1% compound annual growth rate

 

CAGR 1995-2002

 


* Includes acquisitions & core growth

 



 

Proven Source of Growth

 

[CHART]

 



 

CFBX Fee Income to Net Revenue

 

[CHART]

 



 

The Year in Numbers

 

[GRAPHIC]

 



 

Strong Financial Performance

 

 

 

2002

 

Net Income (000)

 

$

79,208

 

Earnings Per Share

 

$

1.97

 

Net Interest Margin

 

5.33

%

Return on Equity

 

21.76

%

Net Charge-offs

 

0.33

%

NPA to Total Assets

 

0.50

%

 



 

Quarterly Results

 

 

 

Q1-03

 

Q1-02

 

Net Income (000)

 

$

19,401

 

$

19,261

 

Earnings Per Share

 

$

.50

 

$

.47

 

Net Interest Margin

 

5.15

%

5.36

%

Return on Common Equity

 

21.01

%

22.03

%

Net Charge-offs

 

.54

%

.32

%

NPA to Total Assets

 

.61

%

.42

%

 



 

Disciplined Approach

 

                  Asset/liability management

 

                  Capital management

 

                  Quality versus quantity portfolio focus

 

                  Portfolio diversity

 

                  Non-performing assets

 

                  Net charge-offs

 

                  Accretive acquisitions

 

                  13 insurance acquisitions 2000 to 2002

 



 

Diversified Portfolio

 

[CHART]

 

Total Volume = $3.6 Billion                                                  3/31/03

 



 

Deposit Mix

 

[CHART]

 

Total Volume = $4.6 Billion                                                  3/31/03

 



 

Earnings Per Share Growth

 

[CHART]

 



 

Return on Equity

 

[CHART]

 



 

How We Compare

 

 

 

Sector

 

CFBX

 

Return on Equity

 

12.78

%

21.76

%

Net Interest Margin

 

4.22

%

5.33

%

Net Charge-offs to Loans

 

.39

%

.33

%

Dividend Yield

 

2.11

%

3.33

%

Return on Assets

 

1.11

%

1.40

%

Price Earnings Multiple

 

16.05

x

13.40

x

 

Source: SNL Financial

2002 - Average

Coverage Universe of 454 Banks

 



 

Total Shareholder Return

 

[CHART]

 

Calculated as of 3/31/03 - Source: Bloomberg, CFBX

 



 

Future Strategies

 

[GRAPHIC]

 



 

Challenging Times

 

                  Interest rate environment

 

                  Credit risk issues

 

                  Economy

 

                  Competitive landscape

 

                  Global concerns

 



 

Growth Strategies

 

Plan for 2003 and beyond

 

                  Market extension

 

                  Acquisitions

 

                  New product development

 

                  Distribution channel expansion

 

                  Loan & deposit opportunities

 



 

Solutions Focus

 

                  Client-focused financial solutions

 

                  Strategic move from campaigns to “all day, every day” sales approach

 

                  Sales blueprints

 

                  Universal financial review

 

                  Expand client relationships

 

                  Scorecard measures results

 

                  Deliver solutions, growth & financial performance

 



 

Deliver Shareholder Value

 

                 Ranked 13th of Top 100 Banks by USBanker

 

                      Based on 2002 return on equity of 21.76%

 

                 Named 2003 Mergent Dividend Achiever

 

                      Ten-year average annual compound growth rate of dividends = 16.75%

 

                      Ranked 50th out of 286 companies

 

                 Named to Forbes 500 for fifth consecutive year

 

                 20.66% annualized total shareholder return over past three years

 

                 6.12% in 2002 versus negative indices

 

                 17.52% since inception

 

                 1.9 million shares repurchased in 2002

 

Sources: USBanker, Mergent, Forbes, Bloomberg, CFBX

 



 

CFBX Performance

 

CFBX vs Index

Relative Price Performance 2000 - 2002

 

[CHART]

 



 

Our Commitment

 

                  Delivery model

 

                  Products & channels

 

                  Growth strategies

 

                  People

 

                  Disclosure & transparency

 



 

To Achieve the Numbers

 

We strive to achieve sustainable growth for shareholders, while focusing on consistent, long-term financial performance.

 

We are Community First.

 



 

Thank You

 

[GRAPHIC]

 

Thank you for your investment in our company.

 



 

 

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