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Community Bank Notes

Volume 4 No. 1

A Publication of Community Bank Corporation

October 2008

Highest rated bank in Chaska and Chanhassen

New partnership brings Community Bank Five Star growth, greater resources, receives Rating by Bauer safety and soundness Financial E C xtraordinary times call for extraordinary actions. During these days of economic uncertainty, let me reassure you that Community Bank is solid, strong and solvent. And we’re taking action to ensure the continued safety and security of your investments, funds and future — today and tomorrow.

This summer, we merged with another strong community bank in Eau Claire, Wis. Strategically, this alignment of two well-capitalized financial institutions makes both of us better and safer than ever.

Community Bank Corporation continues to be the fastest growing financial institution in Chaska and Chanhassen and we have more than

$175 million in assets. This is unprecedented for a bank that has been open for just over eight years.

All of us at Community Bank are very proud of the new partnership we recently formed with Charter Bank Eau Claire.

One of the most unique partnerships in our industry today, this venture allows us to continue offering all of our customers the same exceptional service with a personal touch, while ensuring our future as an independently run community bank.

by Cindy Everet

Fastest Growing Bank in Chaska and Chanhassen … Again ................. p. 2

ommunity Bank Corporation, with offices in Chaska and Chanhassen, was recently awarded a Five Star Rating by Bauer Financial Inc, of Coral Gables, Fla. This is the highest rating that Bauer awards to any community bank in the United States. Bauer Financial is an independent rating and research firm that has been rating banks since 1983.

It has successfully navigated countless depositors through the Savings and Loan Crisis of the 1980s and has earned the reputation as “the nation’s bank rating service.”

Eau Claire. We have no reporting relationship to our sister bank nor them to us. Our name, logo, locations, management and staff remain the same.

Additionally, our board of directors The Five Star rating earned by Community Bank Corporation remains the only locally governing board is based on a complex formula factoring in current and historiof directors for a financial institution in cal data as reported to federal regulators, including Capital, Chaska or Chanhassen.

Earnings, Historical Trends, Loan Delinquencies and overall T h e m e r g e r i s However, our new relationship opens the Asset Quality. Community Bank is the only bank in Chaska t r a n s p a r e n t a s doors for growth and provides greater and Chanhassen to achieve the Five Star Rating.

C o m m u n i t y resources from a larger consolidated Other area banks and financial institutions rated by Bauer B a n k C h a s k a community bank. The combined lend- Financial include, but not limited to: Wells Fargo Bank and and Chanhassen ing limit of our two organizations will be KleinBank Chaska and Chanhassen (four stars); TCF Bank and continue to $12.6 million. This allows Community US Bank (three and one-half stars); M&I Bank Chanhassen operate as sep- Bank to approve larger loan amounts, (three stars). arate banks and autonoPartnership Five Star mously from Continued on page 3 Continued on page 3 Jeff Burzinski, Chairman and CEO Charter Bank

706 Walnut Street • Chaska • 952-361-2265 www.cbchaska.com

455 Pond Promenade • Chanhassen • 952-227-2265 www.cbchanhassen.com

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October 2008

COMMUNITY BANK

Sound banking practices pay dividends for Community Bank and its customers FDIC: Community Bank Chaska and Chanhassen top local banks in their respective communities

by Roger Cruzen

I

f the financial institution where Mr. and Mrs. Main Street choose to deposit their paychecks is any indication, the best place to conduct your banking business these days is your hometown community bank, according to recent figures from the Federal Deposit Insurance Corporation (FDIC).

Between June 30, 2007 and June 30, 2008, Community Bank Chaska and Chanhassen attracted an additional $12.53 million in

Deposit Growth in Chaska and Chanhassen 2007-2008 Community Bank Wells Fargo Bank US Bank M&I Bank TCF Bank Bank of The West KleinBank Security Bank Americana Bank Total

$12,530,000 $5,470,000 $3,090,000 $2,001,000 $1,182,000 $909,000 -$550,000 -$909,000 -$6,903,000 $16,820,000

deposits, bringing its total deposits to more than $119.7 million.

(000's) The annual increase 140,000 was more than double 115,267 the local market 120,000 deposit growth of Wells 100,000 84,728 Fargo Bank and US 80,000 Bank combined and far eclipsed growth 60,000 45,151 44,290 figures at other local 40,000 31,002 competitors, including K l e i n Ba n k , TC F 20,000 Bank, Americana 0 Bank, Security Bank, Community Kleinbank Wells US Bank TCF Bank M&I Bank and Bank Bank Fargo of the West. Since 2000, Community Community Bank commitment Bank deposits have grown by an astonishing $115.3 million — “Thousands of individuals, families and almost $30 million dollars more than its next businesses across Carver County have discovered there is safety and security in doing business closest competitor. with a bank that is committed to financial That’s quite an accomplishment for a bank stewardship of the highest order,” Burzinski that opened in a permanent location eight said. “They understand that the loans we years ago in Chaska and only five years ago make are to local people and enterprises from in Chanhassen. “It also reflects the value our own community, and that these loans are Carver County residents attach to safety and evaluated using very traditional underwriting security at a time when many large national standards.” * banks have been troubled by bad loans and other risky investments,” said Jeff Burzinski, Personal service and community involvement also matter. “Most banks today shuffle their Chairman and CEO customers off to remote call centers when they have a question about their account,” Burzinski

Annual Deposit Growth 2000-2008 Chaska/Chanhassen

October 2008

COMMUNITY BANK

Very

Survey says: Satisfied customers Unprecedented service excellence

W 21,118

18,582

M&I Bank

Security Bank

than 11 percent of surveys returned. And the results were equally impressive.

And we’ve got the survey results

Overall, Community Bank Chaska and Chanhassen received a combined customer satisfaction rating of 98.7 percent — with respondents reporting their experience as either “excellent” or “very good.”

to prove it.

12,030 2,523

Americana Bank

e don’t just talk about customer service excellence; we deliver.

Bank of the West

explained. “At Community Bank, we devote the highest possible level of personal attention to each and every customer need.”

The bank’s management and employees are visible contributors to the community.

Community Bank Chaska President Lon Hand is president of the Chaska Area Chamber of Commerce. Senior Vice President Paul Maahs recently served as president of the Chaska Rotary Club, and Commercial Lending Vice President Tom Hughes currently is president of the Chanhassen Rotary. Community Bank

Sound banking Continued on page 4

Community Bank Corporation annually conducts a customer service survey. This year, we mailed more than 2,000 surveys to customers that have had an account with Community Bank for at least a year. We received an excellent response rate, with more

Thank you, customers, for your feedback and your trust.

Community Bank Annual Customer Service Survey 100%

C

ommunity Bank is pleased to announce the addition of Dave Pokorney to its Board of Directors.

“The addition of Dave to our Board sends a strong message about our bank’s future,” said Jeff Burzinski, Chairman and CEO of Community Bank. “Dave has demonstrated his community commitment through years of dedicated service, and he shares our vision of growth and prosperity for Carver County and surrounding communities.”

Dave Pokorney served the City of Chaska for 24 years as the City Administrator, providing valuable leadership and strategic direction as

the City grew from under 8,000 residents to more than 22,000 residents. During his tenure, Dave oversaw the construction of the Chaska Community Center, the gas turbine power plant, the creation of The Lodge, the Chaska Town Course and other major projects. He was honored earlier this year with the Dr. Robert A. Barrett Award for outstanding service to local government from the Minnesota City/County Management Association.

In addition to overseeing the day-to-day operations of the City of Chaska for more than two decades, Dave was and continues to be active in many local organizations,

boards and commissions — including Chaska Rotary, the 100 Club, Christmas in May and Love Inc. of Eastern Carver County.

He recently has been recognized for his contributions to the community. In May, Dave received the George C. Klein Award for service above self at the annual Dave Pokorney Chaska Rotary banquet.

Last year, he received the 10th Annual Community Spirit Award from the Chaska

Area Chamber of Commerce.

99%

98%

When asked about the opportunity to serve on the Board of Community Bank, Dave shared this comment: “This is an opportunity to continue to be involved in our community.

The strength of a local bank is based on its commitment to the community. I look forward to joining the Board of Community Bank.”

Welcome, Dave – Community Bank is glad to have you on board!

97%

97%

Charter Bank Partnership pride

C

ommunity Bank Corporation is proud of our new partnership with Charter Bank of Eau Claire, Wis. In addition to sharing a strong tradition of performance, our histories and operating philosophies are nearly identical. Our ownership, boards and staff all share the same values and vision for community banking — to be responsive to the needs of our communities’ residents, employees and businesses in an innovative, simple and responsive way.

More about Charter Bank Charter Bank is an independently owned community bank that opened in 1980. It has one location — in Eau Claire — but is the largest bank in the Chippewa Valley with assets of more than $500 million.

Rate the knowledge How well did we Evaluate if we used and courtesy of our explain other services your time efficiently staff

How would you rate the overall environment

How well did we answer your questions

Overall, how would you rate your experience

Chaska 2008 Customer Satisfaction Chanhassen 2008 Customer Satisfaction Combined 2008 Customer Satisfaction

From our customers …

“You have a penchant to hire, train and retain the best people — top notch.”

Stan Hamerski “Everyone is so friendly and knows my name. At our previous bank, they never knew who I was after many years.”

Sylvia Quaas

“We recently had need of several document changes and were very pleased with the pleasant and prompt service.”

Evelyn Wagner “Your staff is the friendliest and most helpful of any bank we have ever been to.”

Larry and Wanda Vanderlinde

Charter Bank is in the 92nd percentile for financial performance, compared to it national peer group. The lending team averages more than 15 years of experience, resulting in exceptional growth in the number of loan clients and loan balances.

In 2005, Charter Bank was the recipient of the Small Business of the Year Award by the Eau Claire Area Chamber of Commerce for its contributions to the Chippewa Valley economy.

Like us, Charter Bank is committed to making a positive difference in the community. In addition to actively supporting the Chippewa Valley region, it has awarded more than $37,000 per year in scholarships to clients attending a college, university or technical college.

Partnership • Continued from page 1 It also strengthens our ability to serve all of our customers’ and prospects’ needs, and better position our banks for growth and expansion to meet those needs — which may include adding a third location.

99%

98%

Community Bank welcomes Dave Pokorney to Board of Directors

All about

better serve our customers and become even more competitive in the marketplace.

100%

Page 3

Among the many potential partners we considered, Charter Bank represented the one that was most closely aligned with our mission, vision and values. They, too, know that “community” is not just our name — it’s how we do business. We are fully committed to making a difference, one relationship at a time. We want to continue to influence the lives of the people and communities we serve — not only through financial services but how we deliver those services.

In the eight years since we first opened the doors of Community Bank, we have established a proud tradition of outstanding financial and service performance. I, and the entire Community Bank team, have great confidence in our business model, our strategic plan and our new partnership.

To our customers — thank you for placing your trust in us. To new community friends who want to learn more — please stop by our Chaska or Chanhassen location, we look forward to meeting you.

And to the communities we so proudly serve and support — thank you for making our original dream for Community Bank a reality.

Jeff Burzinski Chairman and Chief Executive Officer

Five Star • Continued from page 1 “The rating certainly reflects the fact we have not charged off a loan in over 18 months and we have not had any past due loans in nine of the last 11 months,” said Jeff Burzinski, Chairman and CEO. This includes the most recently completed month and quarter end of Sept. 30, 2008.

This is the 12th consecutive quarter that Community Bank as achieved five stars. “We

continue to be guided by our prudent, conservative banking principles and experienced bank leadership. We are a well-capitalized bank and will continue to serve the financial needs of the communities we serve,” Burzinski added.

For more information, visit Bauer Financial’s Web site at www.bauerfinancial.com.

Cindy Everet is a Twin Cities marketing and public relations consultant.

Page 4

October 2008

COMMUNITY BANK

Rewards Banking …better than ever!

3

01%

Earn a great rate with no minimum required.*

APY*

REWARD SAVINGS

The Community Bank advantage

200 years of experience on your team

And there’s more…

Lock in a great rate today and if rates go up, you can raise your rate!*

3

47% APY*

EXCEL-A-RATE 23-MONTH CD

And more…

• Interest Checking with no minimum required* • Free Checks - standard design • Rate Discount on home equity and consumer loans • Free Online Banking • And more!

Open a Reward Checking account and maintain $5000 or more in any combination of checking, savings or consumer loan and receive a special banking package, filled with rewards.

The Community Bank senior management team includes: from left to right (back row) — Paul Maahs, Senior Vice President Commercial Lending Chaska; Geoff Hansen, Vice President Investment Manager Chaska; Tom Hughes, Vice President Commercial Lending Chanhassen; (middle row) — Barb Richardson, Senior Vice President Administration Community Bank Corporation; Jeff Burzinski, Chairman and CEO; (seated) — Bill Traxler, President, Community Bank Chanhassen; Randi Mongeon, Vice President/Cashier Community Bank Corporation; Lon Hand, President, Community Bank Chaska.

L

ike most successful sports teams, the Community Bank management team is one of the most experienced in the marketplace today. With a combined 200 years of experience, we have all of the right skills, tools and commitment to be the best financial institution in Chaska and Chanhassen, as determined by each one of you — our friends, neighbors and customers.

And still more…

Save money at over 55 area businesses with our Free Community Rewards Card.

Enjoy the Rewards.

We know that real value is found where you experience the very best service at the very best price.

We are proud to have the opportunity to serve you. Chaska and Chanhassen have been more than just our workplace for the past dozen years; these communities are part of our roots. From kids’ athletics to Community Theater, to volunteering or campaigning, we have shared laughter and tears with you while watching our families and communities grow.

We look forward to continuing to work with and for you, and to welcoming new friends and customers to the Community Bank family.

Sound banking • Continued from page 2 Making a difference…one relationship at a time.

706 Walnut Street • PO Box 114 455 Pond Promenade • PO Box 1177 Chaska • 952-361-2265 Chanhassen • 952-227-2265 www.cbchaska.com www.cbchanhassen.com Offices of Community Bank Corporation. *Annual Percentage Yields (APY) accurate as of 9-15-08 and subject to change. Reward Savings and Reward Checking has no minimum balance requirement, providing $5000 or more in balances are maintained in any combination of checking, saving or consumer loan with Community Bank. A $10 fee will be assessed to each account if combined balance falls below the $5000 minimum or automatic payment/deposits is not made. Excel-A-Rate 23 mo. CD activation of new rate is based on CBC’s 24-35 month published CD rate, is in effect fror the remaining term of the CD, has an opening minimum balance of $500 and a substantial interest penalty for early withdrawal. Fees could reduce earnings. We reserve the right to decline or limit deposits. Contact a banker for current rates, applicable fees, and terms.

Equal Housing Lender

Member FDIC

Chanhassen President Bill Traxler was selected 2007 Chanhassen Chamber of Commerce “Person of the Year” and Board of Directors member Jim Dauwalter is chairing the 2009 PGA. Burzinski heads up Love INC. of Eastern Carver County, which helps 26 area churches serve local residents living in poverty.

“Our customers are our neighbors, and they want the security of knowing their money is

safe. The fact that we have led Carver County banks in deposit growth year after year demonstrates that our approach is working,” Burzinski said.

Source: www.fdic.gov; click Bankers, then click on Summary of Deposits, then click on Deposit Market Share.

Roger Cruzen is a Twin Cities-based freelance writer.