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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) APRIL 4, 2000
COMMUNITY BANCORP INC.
(Exact name of Registrant as specified in its charter)
DELAWARE 000-26505 33-0859334
(State or other jurisdiction (File number) (I.R.S. Employer
of incorporation) Identification No.)
130 WEST FALLBROOK STREET, FALLBROOK, CA 92028
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: (760) 723-8811
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(Former name or former address, if changed since last report)
Page 1 of 6 pages
Exhibit Index page 4
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ITEM 5. OTHER EVENTS
On April 4, 2000, the Company announced the sale of $10 million of
trust preferred securities by its affiliate, Community (CA) Capital Trust I, a
Delaware business trust (the "Trust"). The Trust used the proceeds from the sale
of the trust preferred securities to purchase junior subordinated debentures of
the Company.
A copy of the press release is attached as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
99 Press Release
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: April 4, 2000 COMMUNITY BANCORP INC.
By: /s/ L. BRUCE MILLS, JR.
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L. Bruce Mills, Jr.
Executive Vice President
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EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION PAGE NO.
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99 Press Release
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( BW)(CA-COMMUNITY-BANCORP)(CMBC) Community Bancorp Inc. Completes Sale of
$10 Million of Trust Preferred Securities
Business Editors
FALLBROOK, Calif.--(BUSINESS WIRE)-- April 4, 2000--Community Bancorp
Inc. (Nasdaq: CMBC), parent company of Fallbrook National Bank, announced
today the issuance of $10 million of 11.0% Fixed Rate Capital Trust
Pass-through Securities ("TRUPS-Registered Trademark-") of Community (CA)
Capital Trust I, with a liquidation value of $1,000 per share.
"The issuance of these securities completes an important step in our new
strategic initiative," stated Tom Swanson, President and Chief Executive
Officer. "The additional capital gives us the opportunity to continue our
expansion and build shareholder value." The new strategic initiative, outlined
in the Company's 10K filed with the SEC, includes:
- -- Retain the guaranteed portion of SBA 7A loans
-- Fund loan growth with core deposits and limited use of
wholesale deposits
-- Seek additional, non-dilutive capital sources
-- Reduce reliance on gain on sale of SBA loans -- stabilizing quarterly
earnings
-- Expand the SBA lending operations through the addition of loan production
offices
- -- Focused geographic expansion of the financial services organization
-- Open additional community banking offices
-- Expand our e-commerce capabilities
-- Add new services, including securities and investment products
-- Enhance and expand existing core lending profit centers
- -- Improve profitability and efficiency by growing core earnings and
controlling operating costs
"Using Trust Preferred securities allows us to raise capital without
diluting earnings per share," stated L. Bruce Mills, Jr., Senior Vice
President and Chief Financial Officer. "Trust Preferred securities are a
relatively inexpensive source of capital, especially considering the current
valuations of financial services firms," Mills continued. "The interest
coupon is also tax deductible, resulting in an approximate after tax cost of
capital of effectively 6.5%, a reasonable price by today's standards."
The securities represent undivided beneficial interests in the Community
(CA) Capital Trust I, which was established by the Company for the purpose of
issuing the securities. The TRUPS were sold in a private transaction exempt
from registration under the Securities Act of 1933, as amended (the "Act")
and have not been registered under the Act. The securities may not be offered
or sold in the United States absent registration or an applicable exemption
from registration requirements. Community (CA ) Capital Trust I used the
proceeds from
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the sale of the 11.0% TRUPS to purchase Junior Subordinated
Debentures of the Company.
Net proceeds from the offering totaled $9.7 million, of which the
Company invested approximately $5 million in its bank subsidiary to increase
the Bank's capital levels, and repaid $3.2 million of its existing corporate
debt. The remaining proceeds are expected to be used for general corporate
purposes.
Community Bancorp Inc., parent company of Fallbrook National Bank, is a
$214 million bank holding company headquartered in Fallbrook, California. The
Company's primary subsidiary, Fallbrook National Bank, serves northern San
Diego and Inland Empire communities with retail banking offices in Fallbrook,
Temecula and Vista, and loan production offices in the cities of Fallbrook,
Los Angeles, Ontario, Orange, Sacramento, Temecula, Vista and in the East San
Francisco Bay Area. Community Bancorp expects to release first quarter
earnings in the third week in April.
Fallbrook National Bank's web site is
www.fallbrooknationalbank.com.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities law of
any such state.
Statements concerning future performance, developments or events
concerning expectation for growth and market forecasts, and any other
guidance on future periods, constitute forward-looking statements which are
subject to a number of risks and uncertainties which might cause actual
results to differ materially from stated expectations.
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CONTACT: Len Cereghino & Co.
Corporate Investor Relations
206/448-1996
or
Community Bancorp Inc.
Tom Swanson, President & CEO
760/723-6001
