COMMUNITY BANCORP CLOSES $3.1 MILLION PRIVATE PLACEMENT
FALLBROOK, CA - August 1, 2001 - Community Bancorp Inc. (Nasdaq: CMBC) announced
today that it has closed a $3.1 million private placement of common stock.
"Community Bancorp is growing rapidly, more than doubling assets in the last two
years," stated Tom Swanson, President and CEO. "This placement provides us with
equity capital that we plan to use to reduce debt and continue our expansion."
Under the terms of the agreement, Community Bancorp sold an aggregate of 473,504
shares of common stock at an average price of $6.63 per share, generating gross
proceeds totaling $3.13 million. No investment banking firm was used in the
private placement. The company engaged an investment banker to render a Fairness
Opinion on the transaction.
"After six quarters of retaining our SBA 7a guaranteed loans and rapidly growing
our loan portfolio, we have entered a new phase in our strategy" added Bruce
Mills, SVP and CFO. "In this stage, we will cap our SBA loans at about 40% of
the total portfolio to ensure diversification. This infusion of capital will
give us access to the funds we need to continue building all of our lending
programs." A Preferred Lender, Community National Bank is the 7th largest SBA
lender in California and 38th in the nation.
Community National Bank, a subsidiary of Community Bancorp, is a $326 million
financial institution headquartered in Fallbrook, California. Located between
Los Angeles and San Diego, the bank's primary focus is community banking and
commercial lending, with additional lending niches of SBA and aircraft lending.
The bank serves North San Diego and the Inland Empire communities with retail
banking offices in Fallbrook, Temecula, Escondido and Vista. The bank has loan
production offices in Fallbrook, Escondido, Los Angeles, Ontario, Orange,
Sacramento, Temecula, Vista and in the East San Francisco Bay Area.
STATEMENTS CONCERNING FUTURE PERFORMANCE, DEVELOPMENTS OR EVENTS, EXPECTATIONS
FOR GROWTH AND INCOME FORECASTS, AND ANY OTHER GUIDANCE ON FUTURE PERIODS,
CONSTITUTE FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO A NUMBER OF RISKS AND
UNCERTAINTIES. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM STATED EXPECTATIONS.
SPECIFIC FACTORS INCLUDE, BUT ARE NOT LIMITED TO, INCREASED PROFITABILITY, THE
ABILITY TO CONTROL COSTS AND EXPENSES, INTEREST RATES AND FINANCIAL POLICIES OF
THE UNITED STATES GOVERNMENT, AND GENERAL ECONOMIC CONDITIONS. ADDITIONAL
INFORMATION ON THESE AND OTHER FACTORS THAT COULD AFFECT FINANCIAL RESULTS ARE
INCLUDED IN ITS SECURITIES AND EXCHANGE COMMISSION FILINGS. THE COMPANY
DISCLAIMS ANY OBLIGATION TO UPDATE ANY SUCH FACTORS OR TO PUBLICLY ANNOUNCE THE
RESULTS OF ANY REVISIONS TO ANY FORWARD-LOOKING STATEMENTS CONTAINED HEREIN TO
REFLECT FUTURE EVENTS OR DEVELOPMENTS.
Note: Transmitted on Business Wire at _6:00 a.m., EST, August 1, 2001.