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COMMUNITY BANCSHARES, INC.
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(Name of Registrant as Specified in Its Charter)
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COMMUNITY BANCSHARES, INC.
68149 Highway 231 South
P.O. Box 1000
Blountsville, Alabama 35031
July 2, 2003
To the Stockholders of
Community Bancshares, Inc.:
You should have received a Proxy Statement, 2002 Annual Report to
Stockholders, Annual Report on Form 10-K and Proxy Card in connection with the
Annual Meeting of stockholders of Community Bancshares, Inc. to be held on July
24, 2003. As set forth in the Notice of the Annual Meeting accompanying the
Proxy Statement, the proposals to be considered at the meeting are (1) the
election of Roy B. Jackson, Stacey Mann and Jimmie Trotter as Class I directors
and (2) the removal of Kennon R. Patterson, Sr. as a Class III director. The
Board of Directors recommends that you vote FOR both proposals. If you have not
already done so, I encourage you to exercise your right as a stockholder by
returning a completed, signed and dated Proxy Card. If you need another Proxy
Card, you may obtain one by calling Deborah Myrick at (205) 429-1001.
I have enclosed a copy of a press release issued today on management
changes at the Company. Please be assured that the entire management team is
working hard to improve the value of your investment in the Company.
Thank you for your support. I look forward to meeting you at the
Annual Meeting on July 24.
Sincerely yours,
Patrick M. Frawley
Chairman, Chief Executive Officer and President
PRESS RELEASE
FOR IMMEDIATE RELEASE
COMMUNITY BANK ANNOUNCES MANAGEMENT TEAM
BLOUNTSVILLE, ALABAMA - July 2, 2003 - Community Bank today announced it has
completed its management team rebuilding process. After his appointment on
January 27, 2003, Chairman and Chief Executive Officer PAT FRAWLEY began a
process of replacing, reassigning, and upgrading the management talent at
Community Bank. Frawley said, "There is no way I, or anyone else, could
effectively manage the affairs of this Company single-handedly. Consequently,
the first thing any new executive must do is assess the existing management
talent, ensure skills match current business needs, and then add or delete as
warranted. I am now confident we have a highly talented, conscientious, and
professional group of individuals who will pursue the achievement of stretch
goals with vigor, integrity, and purpose." The senior management team lines up
as follows:
KERRI KINNEY, CHIEF FINANCIAL OFFICER. Ms. Kinney, 34 and a CPA, has
10 years experience in accounting, auditing, financial risk management and
operations in banks ranging in size from $100 million to $18 billion in assets.
Ms. Kinney manages all financial reporting, accounting controls, accounts
payable, asset-liability and interest rate risk management, investment
securities, and pension or retirement fund accounting.
MARK SOUKUP, SENIOR LENDING OFFICER. Mr. Soukup joined Community Bank
in January 2003 after relocating from Ohio. Mr. Soukup, 47, has 25 years of
experience in a variety of banking environments, including lending, compliance,
operations, as well as, leadership roles of District/Regional Manager and
President and CEO. Mr. Soukup oversees all lending functions, policy
application, loan approval processes, loan operations, and officer/director
lending relationships.
RAY STONE, MANAGER OF SPECIAL ASSETS. Mr. Stone has been with
Community Bank since June 2002 and was promoted to the head of the Special
Assets Division in April 2003. Mr. Stone, 44, has 18 years experience as an
Federal Deposit Insurance Corporation examiner, as well as, a commercial lender
or loan review officer with several regional banks throughout the country. His
focus in Special Assets involves major problem loan relationships,
bankruptcies, collections, foreclosed property, and distressed asset sales.
RUSSELL LIPPERT, DIRECTOR OF RISK MANAGEMENT. Mr. Lippert joined
Community Bank in April 2003. Mr. Lippert, 38, has over 7 years experience as
an examiner with the State of Alabama and the Federal Deposit Insurance
Corporation. For the past 9 years, he has owned and operated a bank consulting
practice, specializing in loan review. Risk Management, reporting directly to
the Board, includes loan review, audit, compliance, regulatory liaison, and
special projects.
JOHN BROTHERS, DIRECTOR OF STRATEGIC PLANNING AND GROWTH. Mr.
Brothers, 52 and a CPA, is responsible for business unit contribution analysis,
strategic planning, business modeling, marketing and advertising, and analysis
of new markets, products, and services. Mr. Brothers joined Community Bank in
May and is relocating from Florida. He brings 30 years of service with Bank of
America and its predecessor organizations, including Controller of a $15
billion subsidiary bank and the CFO of the $30 billion auto finance group.
WILLIAM CAUGHRAN, GENERAL COUNSEL. Mr. Caughran rejoined Community
Bank in February 2003 after a brief stint with a Birmingham law firm. Mr.
Caughran, 46, first joined Community Bank in 1998 after 13 years with a major
regional bank, and is responsible for coordinating all legal work for the
Company. Mr. Caughran also oversees the Bank's personnel function and serves as
Corporate Secretary.
STACEY MANN, PRESIDENT AND CHIEF OPERATING OFFICER. Mr. Mann, 50, was
recently promoted to President and COO to oversee all banking centers and bank
operations. His 20 years with Community Bank provides an invaluable resource
and knowledge base on company history and his hands-on management style fits
well with the Bank's culture. Mr. Mann also serves on the Board of Directors of
the Bank and its parent holding company, Community Bancshares, Inc.
Many other changes in management, including compliance, operations,
audit, legal, individual City Presidents, and Regional Executives have also
occurred which will ensure Community Bank is properly positioned for the
future. Frawley said, "Additional changes will be made as circumstances
warrant, candidates will be selected based on their technical, communication,
managerial and leadership skills; particularly their ability to embrace change.
As stated previously, we are all about the future and the future revolves
around our employees, our customers, and our shareholders."
Community Bank has total assets of approximately $547 million and
operates 20 banking offices in North and West-Central Alabama which provide a
full line of financial services to individual and corporate customers. In
addition, the bank operates a consumer finance company with 12 offices, an
insurance agency, and a real estate appraisal company.
Community Bank - "MAKING A DIFFERENCE, ONE CUSTOMER AT A TIME."