##### Table of Contents





UNITED STATES SECURITIES AND
    EXCHANGE COMMISSIONWashington, D.C.
    20549
      Form 10-K
      þ

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)  OF THE
    SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended
    DECEMBER 31, 2007ORo

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to   Commission File Number
    000-51044
      COMMUNITY BANCORP
 (Exact name of registrant as
    specified in its charter)
  Nevada

01-0668846(State or other jurisdiction
    of incorporation or organization)

(I.R.S. Employer
    Identification No.)400 South 4th Street, Suite 215, Las Vegas, NV

89101(Address of principal executive
    offices)

(Zip
    Code)  (702) 878-0700
 (Registrants telephone
    number)
      Securities registered pursuant to Section 12(b) of the
    Act:
  Title of each class:

Name of each exchange on which registered:Common Stock, $0.001 par value per share

The NASDAQ Stock Market LLC   Securities registered pursuant to Section 12(g) of the
    Act: NONE
  o þ
  o þ
  þ o
  Regulation S-K Form 10-K Form 10-K. þ
  Rule 12b-2
  Large
    accelerated
    filer o
    Accelerated
    filer þ
    Non-accelerated
    filer o
    Smaller
    reporting
    company o (Do
    not check if a smaller reporting company)
  Rule 12b-2 o þ
      Title of Class

Outstanding as of February 29, 2008Common Stock, $0.001 par value


10,269,954 shares   Items 10-14




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##### 





COMMUNITY
    BANCORP
  TABLE OF
    CONTENTS
  PagePART IITEM 1.

BUSINESS


2ITEM 1A.

RISK FACTORS


19ITEM 1B.

UNRESOLVED STAFF COMMENTS


26ITEM 2.

PROPERTIES


26ITEM 3.

LEGAL PROCEEDINGS


26ITEM 4.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY
    HOLDERS


26PART IIITEM 5.

MARKET FOR REGISTRANTS COMMON EQUITY,
    RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
    SECURITIES


27ITEM 6.

SELECTED FINANCIAL DATA


31ITEM 7.

MANAGEMENTS DISCUSSION AND ANALYSIS OF
    FINANCIAL CONDITION AND RESULTS OF OPERATIONS


32ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
    MARKET RISK


60ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA


60ITEM 9.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
    ACCOUNTING AND FINANCIAL DISCLOSURE


60ITEM 9A.

CONTROLS AND PROCEDURES


60ITEM 9B.

OTHER INFORMATION


63PART IIIITEM 10.

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE
    GOVERNANCE


63ITEM 11.

EXECUTIVE COMPENSATION


63ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
    AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS


63ITEM 13.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS,
    AND DIRECTOR INDEPENDENCE


63ITEM 14.

PRINCIPAL ACCOUNTING FEES AND SERVICES


63PART IVITEM 15.

EXHIBITS, FINANCIAL STATEMENT SCHEDULES


64SIGNATURES


66CERTIFICATIONSEXHIBIT 21.1EXHIBIT 23.1EXHIBIT 23.2EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1   i




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Forward-Looking
    Statements
  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
    the recent fluctuations in the U.S. capital and credit
    markets, loan production, balance sheet management, the economic
    condition of the markets in Las Vegas, Nevada, or Phoenix,
    Arizona and their deteriorating real estate sectors, net
    interest margin, loan quality, the ability to control costs and
    expenses, interest rate changes and financial policies of the
    United States government, our ability to manage systemic risks
    and control operating risks, and general economic conditions.
    Additional information on these and other factors that could
    affect financial results are included in Item 1A. Risk
    Factors, herein, and our other Securities and Exchange
    Commission filings.
  When used in this document, the words or phrases such as
    will likely result in, management expects
    that, will continue, is
    anticipated, estimate, projected,
    or similar expressions are intended to identify
    forward-looking statements within the meaning of the
    Private Securities Litigation Reform Act of 1995
    (PSLRA). Such forward looking statements involve
    known and unknown risks, uncertainties and other factors that
    may cause our actual results, performance or achievements to be
    materially different from any future results, performance or
    achievements expressed or implied by such forward-looking
    statements. Such factors include, among others, the following:
    general economic and business conditions in those areas in which
    we operate, demographic changes, competition, fluctuations in
    interest rates, changes in business strategy or development
    plans, changes in governmental regulation, credit quality, the
    availability of capital to fund the expansion of our business,
    economic, political and global changes arising from the war on
    terrorism, the conflict with Iraq and its aftermath, and other
    factors referenced in this Report, including in
    Item 1A. Risk Factors. Readers should not place
    undue reliance on the forward-looking statements, which reflect
    managements view only as of the date hereof. Community
    Bancorp undertakes no obligation to publicly revise these
    forward-looking statements to reflect subsequent events or
    circumstances. This statement is included for the express
    purpose of protecting Community Bancorp under the PSLRAs
    safe harbor provisions. When relying on forward-looking
    statements to make decisions with respect to our Company,
    investors and others are cautioned to consider these and other
    risks and uncertainties.
 1




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##### Table of Contents



PART I  ITEM 1.
    BUSINESS  Community
    Bancorp
              (702) 878-0700. www.communitybanknv.com
  Strategies
    Growth
    Strategies
  
    Capitalize on organic growth opportunities for loans and
    depositsin the Las Vegas and Phoenix markets. 2




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
    Expand franchise valuethrough establishment or
    acquisition of new branches or banks in markets that offer
    regional continuity, including the greater Las Vegas and Phoenix
    markets.
    Continue to grow commercial real estate lendingby
    maintaining the professional respect of the communitys
    developers and leveraging background and depth of experienced
    lenders.
    Expand commercial and industrial lending, as well as small
    business relationships and SBA loanswhich commonly are
    associated with deposits that are a lower cost funding source.
    Continue as a public companywith common stock that is
    quoted and traded on a global stock market.  Operating
    Strategies
  
    Maintain high asset qualityby maintaining rigorous loan
    underwriting standards and credit risk management practices.
    Continue to actively manage interest rate and market risksby closely matching the volume and maturity of interest rate
    sensitive assets to interest rate sensitive liabilities in order
    to mitigate adverse effects of rapid changes in interest rates.
    Diversify revenue sourcesby expanding product lines and
    maximizing products to each client relationship.
    Enhance risk management functionsby proactively managing
    sound procedures and committing experienced human resources to
    this effort.  Market
    Area
    Nevada
    Arizona
    Business
    Activities
   3




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##### Table of Contents



Real Estate Loans.
    $ of Loan$ Outstanding


Portfolio(In millions)Retail

$
411



29
%Office


234



16
%Industrial


152



11
%Hotel/Casino


39



3
%Restaurant/Bar


29



2
%Other


16



1
%Total

$
881



62
%   loan-to-value 10-year
  Commercial and Industrial Loans.
 4




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##### Table of Contents



12-month
          Consumer Lending.
  Lending
    and Credit Policies
          Debt Service Coverage.
  Risk Rating System and Pricing for
    Risk.
  Managed Concentration Levels.
   5




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
    Individual Authorities.  Except for real estate
    loans which require approval by the Senior Loan Committee and/or
    the Board Loan Committee, loan officers have approval
    authorities for secured and unsecured loans, as defined by the
    approved policies of each subsidiary bank. The Chief Executive
    Officer and the Chief Credit Officer also have defined approval
    authorities for secured and unsecured loans.
    Senior Loan Committee.  Community Bank of
    Nevada and Community Bank of Arizona each maintain Senior Loan
    Committees. The Senior Loan Committee of each bank consists of
    the Chief Executive Officer of Community Bancorp and the Chief
    Executive Officer, Chief Operating Officer, the Chief Credit
    Officer, and the managers of Commercial Lending and Commercial
    Real Estate departments of each respective bank. These
    committees have approval authority for secured and unsecured
    loans.
    Board Loan Committee.  The Board Loan Committee
    consists of all of the members of the Board of Directors of each
    respective bank. This committee has approval authority of up to
    the legal lending limits of each subsidiary bank.  Loan Grading and Loan Review.
    
    Random reviews of the loan portfolio conducted by the loan
    administration department;
    Annual reviews conducted by an outside loan reviewer;
    Bank regulatory examinations;
    Monthly action plans submitted to the loan administration
    department by the responsible lending officers for each credit
    with a Grade of 5-8; or
    At the monthly credit risk managers meeting if a loan is
    exhibiting certain delinquency tendencies.  Loan Delinquencies.
  Loan Classifications.
  Operating
    Segments
   6




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##### Table of Contents



Risk
    Management
      
    Credit Administration The department
    administers and maintains all credit policies and procedures,
    loan documentation and disbursement of loan proceeds.
    Operations Support The department has the
    primary responsibility to manage the identified risks associated
    with wires, check fraud, Bank Secrecy Act guidelines and
    identity theft and ensure that the Company is compliant with all
    applicable laws and regulations.
    Audit and Compliance The department regularly
    examines all of the areas of known risk and reports monthly to
    the Audit Committee.  Investment
    Activities
      
    Achieve an acceptable asset/liability gap position (based on a
    separate policy related to asset/liability management that
    provides guidance for how investments are to be used to manage
    asset/liability gaps);
    Provide a suitable balance of quality and diversification;
    Provide liquidity necessary to meet cyclical and long term
    changes in the mix of assets and liabilities;
    Provide a stable flow of dependable earnings;
    Maintain collateral for pledging requirements;
    Manage interest rate risk;
    Comply with regulatory and accounting standards; and
    Provide funds for local community needs.    available-for-sale held-to-maturity Accounting for Certain
    Investments in Debt and Equity Securities Available-for-sale Held-to-maturity
  day-to-day
 7




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Concentrations/Customers
  Assets
    Liabilities
    Deposit
    Products and Other Sources of Funds
    
    Deposits;
    Maturities and principal and interest payments on loans and
    securities; and
    Other borrowings.    Deposits.
  and/or
 8




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and/or and/or
  Other Borrowings.
    Employees
    Competition
        Effect of
    Governmental Policies and Recent Legislation
     9




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time-to-time,
  Supervision
    and Regulation
    Compliance
    Federal
    Bank Holding Company Regulation
        Financial Holding Company Status.
 10




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##### Table of Contents




    Securities underwriting;
    Dealing and market making;
    Sponsoring mutual funds and investment companies;
    Insurance underwriting and brokerage;
    Merchant banking; and
    Activities that the Federal Reserve, in consultation with the
    Secretary of the Treasury, determines from time-to-time to be so
    closely related to banking or managing or controlling banks as
    to be a proper incident thereto.    Holding Company Bank Ownership.
        Holding Company Control of Nonbanks.
  Transactions with Affiliates. and/or
  Tying Arrangements.
  Support of Subsidiary Banks.
 11




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##### Table of Contents



State Law Restrictions.
  Regulation as a Public Company.
  Federal
    and State Regulation of Community Bank of Nevada and Community
    Bank of Arizona
  General.
  Lending Limits.
  Liability of Commonly Controlled
    Institutions.
  Control of Financial Institutions.
  Community Reinvestment.
  Insider Credit Transactions.
 12




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##### Table of Contents



Regulation of Management.
  Safety and Soundness Standards.
  Dividends. section 6-187 section 10-640
        Predatory
    Lending
   13




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##### Table of Contents




    Making unaffordable loans based on the assets of the borrower
    rather than on the borrowers ability to repay an
    obligation, or asset-based lending;
    Inducing a borrower to refinance a loan repeatedly in order to
    charge high points and fees each time the loan is refinanced, or
    loan flipping; and
    Engaging in fraud or deception to conceal the true nature of the
    loan obligation from an unsuspecting or unsophisticated borrower.    
    Interest rates for first lien mortgage loans in excess of
    8 percentage points above comparable U.S. Treasury
    securities;
    Subordinate-lien loans of 10 percentage points above
    U.S. Treasury securities; and
    Fees, such as optional insurance and similar debt protection
    costs paid in connection with the credit transaction, when
    combined with points and fees if deemed excessive.    Privacy
    
    Initial notices to customers about their privacy policies,
    describing the conditions under which they may disclose
    nonpublic personal information to nonaffiliated third parties
    and affiliates;
    Annual notices of their privacy policies to current customers;
    and
    A reasonable method for customers to opt out of disclosures to
    nonaffiliated third parties.    Interstate
    Banking and Branching
     14




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Deposit
    Insurance
            Capital
    Adequacy
  Regulatory Capital Guidelines.
  Tier I and Tier II Capital.
 15




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Risk-based Capital Ratios.
    Leverage Ratio.
  Prompt Corrective Action.
     16




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Corporate
    Governance and Accounting Legislation
  Sarbanes-Oxley Act of 2002.
                        Anti-terrorism
    Legislation
  USA Patriot Act of 2001.
 17




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##### Table of Contents



non-U.S. financial
  Bank
    Secrecy Act
    Legislative
    Initiatives
    Commercial
    Real Estate Lending
    Nonbank
    Entities
   18




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Recent
    Accounting Pronouncements
    Where You
    Can Find More Information
  Form 10-K Form 10-Q Form 8-K www.sec.gov www.communitybanknv.com.
  ITEM 1A.
    RISK
    FACTORS      Factors
    Relating to the Companys Markets and Business
  Continued deterioration in economic conditions in any of the
    Companys market areas, and particularly a slowdown in
    either gaming and tourism activities or the real estate market
    in Las Vegas, could adversely affect the Companys
    business, financial condition, results of operations and
    prospects. Such deterioration could result in a variety of
    adverse consequences to the Company, including a reduction in
    net income and the following:
  
    Loan delinquencies may increase, which could cause an increase
    to the provisions for loan losses;
    Problem assets, other real estate owned, and foreclosures may
    increase, which could result in higher operating expenses, as
    well as possible increases in the provisions for loan losses;
    Demand for products and services may decline, including
    specifically, the demand for loans, which would cause revenues
    (net interest income and non-interest income) to decline; and
    Collateral for loans may decline in value, in turn reducing a
    customers borrowing power, and thus reducing the value of
    assets and collateral associated with the Companys loans,
    which could cause decreases in net interest income and increase
    the provision for loan losses.  The
    greater Las Vegas area economy has grown dramatically during the
    past several years. The failure of this economy to sustain such
    growth in the future could seriously affect the Companys
    ability to grow and to be profitable.
   19




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The
    current changing economic environment poses significant
    challenges for the Company.
    The
    Las Vegas market area is substantially dependent on gaming and
    tourism revenue, and a decrease in gaming or tourism could
    seriously hurt the Companys business and
    prospects.
      An
    expansion of permissible gaming activities in other states,
    particularly in California, may lead to a decline in gaming
    revenue in Las Vegas, which could hurt the Companys
    business and prospects.
    A
    terrorist act, or the mere threat of a terrorist act, may
    adversely affect the Las Vegas economy and may cause substantial
    harm to the Companys business.
   20




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The
    Company has a high concentration of loans secured by real estate
    and further deterioration in the real estate market, for any
    reason, could hurt its business and prospects.
    
    65% are construction and land development loans, including
    undeveloped land;
    31% are commercial real estate loans; and
    4% are residential real estate loans.      and/or
  Factors
    Relating to the Companys Business
  The Companys future success involves both its ability
    to grow and manage such growth. Management must also continue to
    manage the risks inherent in the banking business. The Company
    may not be able to sustain its historical growth rates, be able
    to grow at all, or successfully manage any growth, whether or
    not the greater Las Vegas or Phoenix area economies continue to
    grow. This could result in a variety of adverse consequences to
    the Company, including the following:
  
    Inability to realize any benefit from the investment of
    resources made to support future growth;
    Failure to attract or retain experienced commercial bankers or
    other key employees; 21




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##### Table of Contents




    Inability to maintain adequate controls and systems; and
    Failure to comply with applicable federal, state and local laws,
    rules and regulations.  The
    Company may not be able to continue its historical growth
    rate.
    
    Continued growth of assets, loans, deposits and customer base;
    Expansion through acquisition or the establishment of new
    branches or banks in high growth markets, such as the greater
    Las Vegas and Phoenix areas, and similar high growth markets;
    Recruitment of experienced commercial bankers and other key
    employees; and
    Effective leveraging of capital.    A
    component of the Companys business strategy is to expand
    into high growth markets by opening new branches or organizing
    new banks and/or acquiring other financial institutions.
    Management may not be able to successfully implement this part
    of the Companys business strategy, and therefore its
    market value and profitability may suffer.
    
    Difficulty of integrating the operations and personnel of
    acquired banks and branches;
    Potential disruption of ongoing banking business;
    Inability of management to maximize the Companys financial
    and strategic position by the successful implementation of
    uniform product offerings and the incorporation of uniform
    technology into product offerings and control systems; and
    Inability to maintain uniform standards, controls, procedures
    and policies and the impairment of relationships with employees
    and customers as a result of changes in management.     22




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##### Table of Contents




    Inability to obtain all required regulatory approvals;
    Significant costs and anticipated operating losses during the
    application and organizational phases, and the first years of
    operations of the new bank;
    Inability to secure the services of qualified senior management;
    Non-acceptance of the services of a new bank owned and managed
    by a bank holding company headquartered outside of the market
    area of the new bank;
    Additional strain on management resources and internal systems
    and controls; and
    Inability to secure required capital.  The
    Companys growth could be hindered unless it is able to
    recruit additional qualified employees.
  and/or
      The
    Companys business would be harmed if it lost the services
    of any of its key executives.
   23




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##### Table of Contents



There
    is intense competition in the Companys market areas and
    management cannot assure you that it will be able to
    successfully compete.
  out-of-state
  The
    Companys allowance for loan losses may not be adequate to
    cover actual losses, particularly given the relatively large
    individual loan size.
      The
    Companys future earnings could be negatively impacted if
    an impairment of goodwill is recognized.
    Provisions
    in the Companys articles of incorporation and bylaws may
    limit the ability of another party to acquire the
    Company.
   24




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##### Table of Contents



The
    Company is subject to interest rate risk.
    and/or
  The
    Company cost of funds could increase if wholesale core deposits
    are unavailable.
    The
    Company is subject to extensive government regulation. These
    regulations could adversely affect the Companys business,
    financial condition, results of operations or cash
    flows.
    The
    Companys Stock Trades Less Frequently Than
    Others.
   25




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##### Table of Contents



The
    Companys Stock Price is Affected by a Variety of
    Factors.
    
    Actual or anticipated variations in quarterly results of
    operations;
    Recommendations by securities analysts;
    Operating and stock price performance of other companies that
    investors deem comparable to the Company;
    News reports relating to trends, concerns and other issues in
    the financial services industry;
    Perceptions in the marketplace regarding the Company
    and/or its
    competitors.    The
    Companys Common Stock Is Not An Insured
    Deposit.
    ITEM 1B.
    UNRESOLVED
    STAFF COMMENTS    ITEM 2.
    PROPERTIES  th
    ITEM 3.
    LEGAL
    PROCEEDINGS  time-to-time
  ITEM 4.
    SUBMISSION
    OF MATTERS TO A VOTE OF SECURITY HOLDERS   26




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##### Table of Contents



PART II  ITEM 5.
    MARKET
    FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS
    AND ISSUER PURCHASES OF EQUITY SECURITIES  Market
    Information
    Trading PricesHigh


Low20071st quarter

$
33.77


$
29.442nd quarter

$
31.62


$
27.523rd quarter

$
28.34


$
21.974th quarter

$
26.66


$
16.50Year ended December 31, 2007

$
33.77


$
16.5020061st quarter

$
33.00


$
29.702nd quarter

$
34.31


$
28.873rd quarter

$
34.27


$
30.414th quarter

$
33.45


$
28.88Year ended December 31, 2006

$
34.31


$
28.87   Holders
    Dividends
           27




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##### Table of Contents



Securities
    Authorized for Issuance under Equity Compensation
    Plans
    Number of





Number ofSecurities to be


Weighted Average


SecuritiesIssued Upon


Exercise Price of


Remaining AvailablePlan Category

Exercise of Options


Outstanding Options


for Future IssuanceEquity compensation plans approved by security holders


564,745


$
26.61



1,451,352Equity compensation plans not approved by shareholders










Total


564,745


$
26.61



1,399,644     Recent
    Sales of Unregistered Securities
    Purchases
    of Equity Securities by the Issuer and Affiliated
    Purchasers
   28




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##### Table of Contents



Remaining SharesAverage


that may beTotal Number of


Price Paid


Purchased Under thePeriod

Shares Purchased


per Share


AuthorizationJuly 2007





$




520,996August 2007


42,800



23.03



478,196September 2007










478,196Third quarter 2007 total


42,800



23.03



478,196October 2007


45,800



20.09



432,396November 2007


227,600



19.74



204,796December 2007










204,796Fourth quarter 2007 total


273,400



19.80



204,7962007 total


316,200



20.24



204,796  29




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##### Table of Contents



Performance
    Graph
    
  Period EndedIndex

12/10/04


12/31/04


12/31/05


12/31/06


12/31/07Community Bancorp


100.00



104.26



107.70



102.86



59.18Russell 2000


100.00



103.19



107.89



127.70



125.70SNL Bank Index


100.00



102.72



104.12



121.79



94.64  30




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##### Table of Contents



ITEM 6.
    SELECTED
    FINANCIAL DATA  Selected
    Consolidated Financial Data
    SUMMARY
    CONSOLIDATED FINANCIAL DATA AND OTHER DATA
  Year Ended December 31,2007


2006


2005


2004


2003(In thousands, except share and percentage data)CONSOLIDATED INCOME STATEMENT DATAInterest and dividend income

$
128,025


$
86,489


$
46,337


$
30,038


$
27,143Interest expense


57,147



33,765



12,511



6,862



7,453Net interest income


70,878



52,724



33,826



23,176



19,690Provision for loan losses


3,355



3,509



1,085



922



1,723Net interest income after provision for loan losses


67,523



49,215



32,741



22,254



17,967Non-interest income


3,622



2,625



2,275



1,489



1,563Non-interest expense


39,727



27,620



20,512



15,946



12,020Income before income taxes


31,418



24,220



14,504



7,797



7,510Provision for income taxes


11,023



8,581



4,439



2,376



2,295Net income

$
20,395


$
15,639


$
10,065


$
5,421


$
5,215SHARE DATAEarnings per share  basic

$
1.96


$
1.95


$
1.45


$
1.13


$
1.13Earnings per share  diluted

$
1.95


$
1.92


$
1.42


$
1.10


$
1.10Dividend payout ratio(1)


N/A



N/A



N/A



5.31
%


7.96
%Book value per share

$
22.89


$
21.07


$
14.47


$
11.49


$
6.96Shares outstanding at year end


10,269,954



10,388,813



7,374,712



6,747,673



4,629,580Weighted average shares outstanding  basic


10,358,561



8,036,905



6,964,719



4,798,922



4,620,744Weighted average shares outstanding  diluted


10,454,330



8,136,968



7,091,311



4,940,977



4,729,021CONSOLIDATED BALANCE SHEET DATACash and cash equivalents

$
19,404


$
46,116


$
86,904


$
67,254


$
36,005Investments and other securities


103,032



115,747



97,204



86,260



70,093Gross Loans


1,419,182



1,253,211



663,407



403,270



350,082Allowance for loan losses


17,098



14,973



8,117



6,133



5,409Total assets


1,693,521



1,570,379



892,708



573,961



463,431Deposits


1,230,462



1,176,276



725,088



476,252



403,713Junior subordinated debt


72,166



87,630



36,083



15,464



15,464Total stockholders equity


235,119



218,871



106,749



77,553



32,201SELECTED OTHER BALANCE SHEET DATAAverage assets

$
1,640,023


$
1,117,470


$
703,556


$
523,766


$
436,843Average earning assets

$
1,460,284


$
1,023,778


$
657,453


$
498,578


$
416,742Average stockholders equity

$
230,551


$
135,312


$
88,664


$
35,910


$
29,279SELECTED FINANCIAL RATIOSReturn on average assets


1.24
%


1.40
%


1.43
%


1.04
%


1.19
%Return on average stockholders equity


8.85
%


11.56
%


11.35
%


15.10
%


17.81
%Net interest margin(2)


4.88
%


5.19
%


5.21
%


4.65
%


4.72
%Efficiency ratio(3)


53.32
%


49.90
%


56.82
%


64.65
%


56.56
%CAPITAL RATIOSAverage stockholders equity to average assets


14.06
%


12.11
%


12.60
%


6.86
%


6.70
%Tier 1 leverage capital ratio


12.00
%


11.73
%


13.09
%


16.91
%


8.96
%Tier 1 risk-based capital ratio


11.36
%


11.80
%


14.20
%


19.66
%


11.18
%Total risk-based capital ratio


12.41
%


13.68
%


16.29
%


20.92
%


13.61
%SELECTED ASSET QUALITY RATIOSNon-performing loans to total gross loans(4)


0.85
%


0.05
%


0.14
%


0.24
%


0.66
%Non-performing assets to total gross loans and OREO


0.85
%


0.05
%


0.14
%


0.78
%


1.00
%Non-performing assets to total assets(5)


0.71
%


0.04
%


0.10
%


0.55
%


0.76
%Allowance for loan losses to total gross loans


1.20
%


1.19
%


1.22
%


1.52
%


1.55
%Allowance for loan losses to non-performing loans


141
%


2,314
%


887
%


634
%


234
%Allowance for loan losses to non-performing assets


141
%


2,314
%


887
%


194
%


154
%Net charge-offs (recoveries) to average loans


0.09
%


0.05
%


0.01
%


0.05
%


0.31
%    (1)
    
    There were no dividends declared in
    2007, 2006, and 2005. The dividend payout ratios for 2004 and
    2003 are based on stock dividends.(2)
    
    Net interest margin represents net
    interest income on a tax equivalent basis as a percentage of
    average interest-earning assets.(3)
    
    Efficiency ratio represents
    non-interest expenses, excluding provision for loan losses, as a
    percentage of the aggregate of net interest income and
    non-interest income.(4)
    
    Non-performing loans are defined as
    loans that are past due 90 days or more plus loans placed
    in non-accrual status.(5)
    
    Non-performing assets are defined
    as assets that are past due 90 days or more plus assets
    placed in non-accrual status plus other real estate owned. 31




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##### Table of Contents



ITEM 7.
    MANAGEMENTS
    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
    OPERATION      Overview
    
    Reduce cost of funds by attracting a higher share of
    non-interest bearing deposit accounts;
    Provide competitive CRE loans, construction loans and land
    acquisition and development loans, and C&I loans to high
    quality borrowers;
    Focus and commitment to profitable banking relationships;
    Encourage business development of profitable customer
    relationships with a pay for performance
    compensation culture;
    Maintain disciplined controls over non-interest expense in order
    to consistently grow on a profitable basis;
    Maintain strong underwriting standards and credit administration
    functions as well as increase lending capacity by the growth in
    capital base; and
    Add seasoned professionals to the staff with banking expertise,
    local market knowledge and a network of client relationships.
    Continue to look for acquisition opportunities to expand the
    Companys franchise value.  KEY
    FACTORS IN EVALUATING FINANCIAL CONDITION AND OPERATING
    PERFORMANCE
  Return to shareholders.
    Return on average assets.
 32




---



##### Table of Contents



Asset quality.
  Asset growth.
  Operating efficiency.
  CRITICAL
    ACCOUNTING POLICIES
    Allowance for Loan Losses.
       33




---



##### Table of Contents



Available- for-Sale
    Securities. Accounting for
    Certain Investments in Debt and Equity Securities available-for-sale
  available-for-sale available-for-sale
  Goodwill and Other Intangibles. Goodwill and Other
    Intangible Assets
  Accounting for the Impairment or Disposal of Long Lived
    Assets
  Share-Based Compensation. Share-Based Payment Share-Based Payment
  
    Expected volatility  based on the historical
    volatility of similar entities stock price that have been
    public for a period of time at least equal to the expected life
    of the option.
    Expected term of the option  based on the simple
    average of the vesting term and the original contract term. 34




---



##### Table of Contents




    Risk-free rate  based upon the rate on a zero coupon
    U.S. Treasury bill, for periods within the expected term of
    the option.
    Dividend yield  based on the assumption that
    Management does not foresee any circumstances in the immediate
    future in which cash dividends would be paid on the
    Companys common stock.  Segment Reporting.
  Trends
    and Developments Impacting the Companys Recent and Future
    Results
    
    Growth in Market Areas.  The Companys
    organic growth has been fueled primarily by rapid population and
    economic growth in greater Las Vegas where it conducts a
    majority of its operations. The economic growth in Las Vegas has
    paralleled significant investments in the gaming and tourism
    industries. The population growth resulted in an increase in
    loans for acquisition of raw land for residential and commercial
    development, the construction of residential communities, retail
    centers, office buildings and the expansion of professionals
    providing services to this increased population. Similarly,
    expansion into the Phoenix market has contributed to the
    Companys growth since September 2006 (see discussion
    below).    
    2006 Acquisitions.  An integral component of
    the Companys growth over the past three years has been the
    successful completion of three mergers, including the
    acquisitions of Community Bank of Arizona (formerly Cactus
    Commerce Bank) and Valley Bancorp in 2006. These mergers have
    expanded the Companys balance sheet, increased earnings
    and expanded operations into greater Phoenix. While acquisitions
    remain a strategic objective of the Company, acquisition
    activity for the foreseeable future will likely be limited as a
    result of current credit issues encountered by many financial
    institutions and the recent decline in the Companys stock
    price. Additionally, attempting to grow through acquisition does
    present risks, such as finding suitable opportunities at
    affordable prices, integrating acquired institutions and other
    items as discussed in Item 1A. Risk Factors.
    Balance Sheet Management.  The Companys
    earnings are sensitive to changes in interest rates. Between
    2005 and 2006, the Companys net interest margin remained
    relatively stable as the increased yield on interest earning
    assets, caused in part from continuing residual impact of
    increases in market interest rates that occurred in mid-2004
    through mid-2006 were offset by higher cost of funding
    liabilities driven primarily by a change in deposit mix that
    required the use of more expensive funding sources (e.g., FHLB
    borrowings and junior subordinated debt versus customer
    deposits). During the first nine months of 2007 the
    Companys net interest margin compressed to 4.95% compared
    to 5.39% for the same period in 2006 as yields on interest
    earning assets increased 44 basis points (due primarily to
    changes in market rates and an increase in the percentage of
    loans to total interest earning assets) and the cost of interest
    bearing liabilities increased 87 basis points (due
    primarily to changes in market rates and an unfavorable change
    in the mix of funding liabilities). By the end of the third
    quarter 2007 the Company had repositioned its balance sheet to a
    liability sensitive position in an effort to prepare for a
    falling interest rate environment. As short-term rates began
    dropping in September 2007 the Company should have experienced
    an increase in net interest margin. However, offsetting the
    benefit of being liability sensitive was lost interest from
    increases in non-accrual loans and unfavorable changes in
    deposit mix. As a result the Companys net interest margin
    compressed to 4.71% during the fourth quarter of 2007 as
    compared to 4.90% during the quarter ended September 30,
    2007. 35




---



##### Table of Contents




    Impact of Expansion on Non-Interest
    Expense.  In 2006, in conjunction with the
    aforementioned acquisitions, the Company increased the number of
    branches from nine to fifteen, and in 2007 added three branches
    and closed two branches. These additional properties
    significantly increased the Companys occupancy and
    equipment expense. In addition, the acquisitions contributed to
    the increase in the Companys salaries, wages and employee
    benefits expense. While the management does not anticipate any
    significant increase in recurring operational costs during 2008,
    two new branch locations are scheduled to open in late 2008
    which will increase operational costs during the third and
    fourth quarters of 2008.
    Asset Quality.  The Companys results can
    be significantly influenced by changes in the credit quality of
    its borrowers. Non-performing loans totaled $12.1 million
    or 0.85% of total gross loans at December 31, 2007 and
    $647,000 or 0.05% of total gross loans at December 31,
    2006. This increase is primarily the result of the weakening
    economies and deterioration of the residential real estate
    sectors experienced in the Companys primary market areas
    during the second half of 2007 and the effect these conditions
    had on its commercial and industrial, commercial real estate and
    construction and land development loans. While the economic
    slowdown has affected the ability of certain borrowers to
    service their loans within the terms of their loan agreements,
    the total amount of nonperforming loans is a small percentage of
    the Companys gross loans at December 31, 2007.
    Management does not anticipate any material losses from
    nonperforming loans in excess of those already reflected in the
    allowance for loan losses at December 31, 2007 since these
    loans currently retain sufficient collateral value to liquidate
    the underlying principal balance. However, January and February
    of 2008 continued to reflect a deteriorating condition in the
    residential real estate sectors in the Companys markets.
    Any prolonged or further deterioration in the real estate
    markets with resulting declines in the value of real estate
    collateral may cause higher levels of nonperforming assets and
    loan losses in future periods. See Financial
    Condition  Loans  Non-Performing
    Assets.  RESULTS
    OF OPERATIONS
   36




---



##### Table of Contents



Net Interest Income.
    2007 vs. 2006


2006 vs. 2005Increase (Decrease)


Increase (Decrease)due to Change in


due to Change inVolume


Rate


Total


Volume(1)


Rate(1)


Total(In thousands)Interest and dividend income:Loans

$
40,714


$
756


$
41,470


$
32,566


$
6,008


$
38,574Investments securities


631



414



1,045



238



611



849Federal funds sold


(1,069
)


90



(979
)


(187
)


916



729Total interest income


40,276



1,260



41,536



32,617



7,535



40,152Interest expense:Interest bearing demand


670



118



788



334



447



781Money market


6,952



1,707



8,659



2,879



5,273



8,152Savings


570



(41
)


529



182



371



553Time


6,900



2,193



9,093



4,857



2,270



7,127Borrowings


1,786



237



2,023



2,344



139



2,483Junior subordinated debt


2,311



(21
)


2,290



2,066



92



2,158Total interest expense


19,189



4,193



23,382



12,662



8,592



21,254Net interest income

$
21,087


$
(2,933
)

$
18,154


$
19,955


$
(1,057
)

$
18,898     (1)
    
    Certain volumes and rates have been reclassified to conform with
    current presentation. 37




---



##### Table of Contents



Consolidated Average BalancesFor The Year Ended December 31,2007


2006


2005Interest


Annualized





Interest


Annualized





Interest


AnnualizedAverage


Income/


Average


Average


Income/


Average


Average


Income/


AverageBalance


Expense


Rate/Yield


Balance(7)


Expense(7)


Rate/Yield


Balance(7)


Expense(7)


Rate/Yield(In thousands, except percentage data)Assets:Interest earning assets:Loans(1)(2)

$
1,318,995


$
121,017



9.17
%

$
875,166


$
79,547



9.09
%

$
507,487


$
40,973



8.07
%Investment securities(3)(4)


112,526



5,520



5.29
%


99,243



4,475



4.96
%


93,359



3,626



4.37
%Federal funds sold


28,763



1,488



5.17
%


49,369



2,467



5.00
%


56,607



1,738



3.07
%Total interest earning assets(3)


1,460,284



128,025



8.80
%


1,023,778



86,489



8.49
%


657,453



46,337



7.12
%Non-interest earning assets:Cash and due from banks


22,280











21,086











18,327Goodwill and intangibles


123,107











44,260











7,778Other assets


34,352











28,346











19,998Total assets

$
1,640,023










$
1,117,470










$
703,556Liabilities and stockholders equity:Interest bearing liabilities:Deposits:Interest bearing demand

$
70,043



1,884



2.69
%

$
44,799



1,096



2.45
%

$
25,678



315



1.23
%Money market


506,669



22,988



4.54
%


350,386



14,329



4.09
%


254,793



6,177



2.42
%Savings


40,436



1,118



2.76
%


19,649



589



3.00
%


6,361



36



0.57
%Time


406,858



20,405



5.02
%


264,223



11,312



4.28
%


138,931



4,185



3.01
%Total interest bearing deposits


1,024,006



46,395



4.53
%


679,057



27,326



4.02
%


425,763



10,713



2.52
%Borrowings


95,146



4,911



5.16
%


60,266



2,888



4.79
%


10,757



405



3.76
%Junior subordinated debt


83,520







5,841



6.99
%


50,488



3,551



7.03
%


21,108



1,393Total interest bearing liabilities


1,202,672



57,147



4.75
%


789,811



33,765



4.28
%


457,628



12,511



2.73
%Non-interest bearing liabilities:Demand deposits


196,225











184,726











152,912Other liabilities


10,575











7,621











4,352Total liabilities


1,409,472











982,158











614,892Stockholders equity


230,551











135,312











88,664Total liabilities and stockholders equity

$
1,640,023










$
1,117,470










$
703,556Net interest income





$
70,878










$
52,724










$
33,826Net interest spread(3)(5)










4.05
%










4.21
%










4.39
%Net interest margin(3)(6)










4.88
%










5.19
%










5.21
%     (1)
    
    Includes average non-accrual loans of $4.1 million $928,000
    and $888,000 for the years ended December 31, 2007, 2006
    and 2005, respectively.(2)
    
    Net loan fees of $8.2 million and $5.1 million are
    included in interest income for the years ended
    December 31, 2007 and 2006, respectively.(3)
    
    Yields on securities, total interest-earning assets, net
    interest spread and net interest margin have been adjusted to a
    tax-equivalent basis.(4)
    
    Includes securities available for sale, securities held to
    maturity, interest bearing deposits in other banks and required
    equity investments.(5)
    
    Net interest spread represents the average yield earned on
    interest earning assets less the average rate paid on interest
    bearing liabilities.(6)
    
    Net interest margin is computed by dividing net interest income,
    on a tax equivalent basis, by total average earning-assets.(7)
    
    Certain average balances and income in prior years have been
    reclassified to conform with current presentation. 38




---



##### Table of Contents



2007
    versus 2006
            2006
    versus 2005
       39




---



##### Table of Contents



Provision for Loan Losses.
  2007
    versus 2006
    2006
    versus 2005
    Non-Interest Income.
  Year EndedDecember 31,2007


2006


2005Increase





IncreaseAmount


(Decrease)


Amount


(Decrease)


Amount(In thousands)Service charges and other income

$
2,518


$
605


$
1,913


$
226


$
1,687Income from bank owned life insurance


451



78



373



(131
)


504Net swap settlements


182



31



151



151



Rental income


175



30



145



145



Gain on sale of securities


4



2



2



2



Net gain on sales of loans


292



251



41



(43
)


84Total non-interest income

$
3,622


$
997


$
2,625


$
350


$
2,275   2007
    versus 2006
    2006
    versus 2005
   40




---



##### Table of Contents



Non-Interest Expense.
  Year EndedDecember 31,2007


2006


2005Increase





IncreaseAmount


(Decrease)


Amount


(Decrease)


Amount(In thousands)Salaries, wages and employee benefits

$
22,328


$
7,300


$
15,028


$
2,376


$
12,652Occupancy, equipment and depreciation


5,123



1,550



3,573



1,400



2,173Professional fees


1,713



372



1,341



(74
)


1,415Advertising and public relations


1,830



658



1,172



263



909Data processing


1,088



157



931



201



730Core deposit intangible amortization


1,340



456



884



630



254Directors fees


522



(259
)


781



497



284Stationery and supplies


733



248



485



108



377Insurance


699



299



400



115



285Telephone and postage


809



419



390



161



229Software maintenance


457



205



252



150



102Loan related


327



112



215



44



171Loss on interest rate swap


380



380











Foreclosed assets, net














234



(234
)Other operating expenses


2,378



210



2,168



1,003



1,165Total non-interest income

$
39,727


$
12,107


$
27,620


$
7,108


$
20,512   2007
    versus 2006
        mark-to-market
 41




---



##### Table of Contents



mark-to-market
  2006
    versus 2005
      Provision for Income Taxes.
    available-for-sale
  FINANCIAL
    CONDITION
  Loans
  year-over-year
 42




---



##### Table of Contents



December 31,


December 31,


December 31,


December 31,


December 31,2007


2006


2005


2004


2003(In thousands)Commercial and industrial

$
210,614


$
177,583


$
126,157


$
59,820


$
62,476Real estate:Commercial(1)


370,464



347,072



187,236



148,411



122,396Residential(2)


43,212



35,150



30,148



24,097



26,987Construction and land development(3)(4)


789,185



686,267



316,221



167,154



133,875Consumer and other


5,707



7,139



3,645



3,788



4,348Total gross loans


1,419,182



1,253,211



663,407



403,270



350,082Less:Allowance for Losses


17,098



14,973



8,117



6,133



5,409Net unearned loan fees and discounts


5,194



3,397



3,716



2,126



1,454Total net loans

$
1,396,890


$
1,234,841


$
651,574


$
395,011


$
343,219     (1)
    
    Owner-occupied commercial real estate loans were approximately
    50.5% and 48.1% of the Companys commercial real estate
    loan portfolio as of December 31, 2007 and 2006,
    respectively.(2)
    
    Includes farmland loans and loans for custom homes to high net
    worth customers and home equity lines of credit.(3)
    
    Includes loans for undeveloped land of approximately
    $178.3 million and $223.1 million as December 31,
    2007 and 2006, respectively.(4)
    
    Includes loans for property zoned for 1-4 family residential
    real estate, which amounted to $226.7 million and
    $187.9 million as of December 31, 2007 and 2006,
    respectively.    December 31, 2007Rate Structurefor Loans MaturingMaturity


Over One YearOne Year


One Through


Over





Floating


Fixedor Less


Five Years


Five Years


Total


Rate


Rate(In thousands)Commercial and industrial

$
156,850


$
40,479


$
13,285


$
210,614


$
21,437


$
32,327Real estate:Commercial


53,965



135,995



180,504



370,464



99,648



216,851Residential


12,096



21,278



9,838



43,212



26,343



4,773Construction and land development


680,054



107,137



1,994



789,185



94,784



14,347Consumer and other


2,413



1,300



1,994



5,707



40



3,254Total

$
905,378


$
306,189


$
207,615


$
1,419,182


$
242,252


$
271,552    43




---



##### Table of Contents



Non-Performing Assets.
    At December 31,2007


2006


2005


2004


2003(In thousands)Non-accrual loans, not restructured

$
12,076


$
647


$
912


$
966


$
1,596Accruing loans past due 90 days or more


20







3



2



Restructured loans


















719Total non-performing loans (NPLs)


12,096



647



915



968



2,315OREO














2,191



1,192Total non-performing assets (NPAs)

$
12,096


$
647


$
915


$
3,159


$
3,507Selected ratiosNPLs to total gross loans


0.85
%


0.05
%


0.14
%


0.24
%


0.66
%NPAs to total gross loans and OREO


0.85
%


0.05
%


0.14
%


0.78
%


1.00
%NPAs to total assets


0.71
%


0.04
%


0.10
%


0.55
%


0.76
%     December 31, 2007


December 31, 2006Non-Accrual





Percent of


Non-Accrual





Percent ofBalance


%


Total Loans


Balance


%


Total Loans(In thousands, except percentage data)Commercial and industrial

$
2,042



16.9
%


0.15
%

$
595



92.0
%


0.05
%Real Estate:Commercial


4,291



35.5
%


0.30
%






0.0
%


0.00
%Residential






0.0
%


0.00
%


52



8.0
%


0.00
%Construction and land development


5,738



47.6
%


0.40
%






0.0
%


0.00
%Consumer and Other


5



0.0
%


0.00
%






0.0
%


0.00
%Total

$
12,076



100.0
%


0.85
%

$
647



100.0
%


0.05
%   2007
    versus 2006
   44




---



##### Table of Contents



sub-prime
  2006
    versus 2005
      OREO Properties.
  Impaired Loans. and/or
  
    All loans that are both (1) Grades 6-8, and (2) over
    $200,000 for Community Bank of Nevada and over $100,000 for
    Community Bank of Arizona; and
    Any other loans management does not expect to receive
    contractual interest
    and/or
    principal by the contractual due date.  case-by-case and/or
  loan-by-loan
  2007
    versus 2006
   45




---



##### Table of Contents



2006
    versus 2005
    Allowance
    for Loan Losses
    Specific Allocations. Accounting by Creditors for
    Impairment of a Loan,
  General Allowances. Accounting for Contingencies
 46




---



##### Table of Contents



Year Ended December 31,2007


2006


2005


2004


2003(In thousands)Allowance for Loan Losses:Balance at beginning of period

$
14,973


$
8,117


$
6,133


$
5,409


$
4,688Charge-offs:Commercial and industrial


1,125



656



180



367



617Real Estate:Commercial


















3Residential


228















177Construction and land development














1



180Consumer and other


199



5



40



15



59Other


















Total charge-offs


1,552



661



220



383



1,036RecoveriesCommercial and industrial


294



180



186



121



6Real Estate:Commercial


















Residential


26











63



26Construction and land development


1











1



Consumer and other


1



12











2Total recoveries


322



192



186



185



34Net loans charge-offs (recoveries)


1,230



469



34



198



1,002Provision for loan losses


3,355



3,509



1,085



922



1,723Allowance resulting from acquisitions






3,816



933







Balance at end of period

$
17,098


$
14,973


$
8,117


$
6,133


$
5,409Total gross loans

$
1,419,182


$
1,253,211


$
663,407


$
403,270


$
350,082Average gross loans (net of deferred fees)


1,318,995



875,166



507,487



360,767



319,597Non-performing loans


12,096



647



915



968



2,315Selected ratios:Net charge-offs (recoveries) to average loans


0.09
%


0.05
%


0.01
%


0.05
%


0.31
%Provision for loan losses to average loans


0.25
%


0.40
%


0.21
%


0.25
%


0.54
%Allowance for loan losses to gross loans outstanding at end of
    period


1.20
%


1.19
%


1.22
%


1.52
%


1.55
%Allowance for loan losses to total nonperforming loans


141
%


2,314
%


887
%


634
%


234
%   stock-and-bond
 47




---



##### Table of Contents



loan-to-value
        Year Ended December 31,2007


2006


2005


2004


2003Percent





Percent





Percent





Percent





Percentof Loans





of Loans





of Loans





of Loans





of Loansin Each





in Each





in Each





in Each





in EachAllocation


Category


Allocation


Category


Allocation


Category


Allocation


Category


Allocation


Categoryof the


to Total


of the


to Total


of the


to Total


of the


to Total


of the


to TotalAllowance


Loans


Allowance


Loans


Allowance


Loans


Allowance


Loans


Allowance


Loans(In thousands, except percentage data)Commercial and industrial

$
12,414



14.80
%

$
10,930



14.20
%

$
5,650



19.10
%

$
4,409



14.80
%

$
3,772



17.80
%Real estate:Commercial


2,334



26.10
%


1,797



27.70
%


1,389



28.20
%


893



36.90
%


858



35.00
%Residential


681



3.00
%


749



2.80
%


225



4.50
%


238



6.00
%


228



7.70
%Construction and land development


1,134



55.70
%


898



54.80
%


415



47.70
%


237



41.40
%


228



38.20
%Consumer and other


535



0.40
%


599



0.50
%


438



0.50
%


356



0.90
%


323



1.30
%Total

$
17,098



100.00
%

$
14,973



100.00
%

$
8,117



100.00
%

$
6,133



100.00
%

$
5,409



100.00
%   Investments
    Available-for-sale Available-for-sale
 48




---



##### Table of Contents



December 31,2007


2006


2005Amortized


Fair


Amortized


Fair


Amortized


FairCost


Value


Cost


Value


Cost


Value(In thousands)U.S. Government-sponsored agencies

$
26,537


$
26,811


$
37,963


$
37,957


$
26,504


$
26,226Municipal bonds


21,396



21,643



22,382



22,519



22,908



23,188SBA loan pools


656



653



815



814



1,121



1,112Other debt securities


















500



504Mortgage-backed securities


40,300



39,897



47,727



46,689



44,727



43,348Mutual funds


30



30



1,204



1,204







Total investment securities

$
88,919


$
89,034


$
110,091


$
109,183


$
95,760


$
94,378     Year Ended December 31, 2007After One Year


After Five YearsBut Within


But Within


Ten YearsWithin One Year


Five Years


Ten Years


AfterAmount


Yield


Amount


Yield


Amount


Yield


Amount


Yield(In thousands)U.S. Government-sponsored agencies

$
13,051



4.80
%

$
13,760



5.19
%

$




0.00
%

$




0.00
%Municipal bonds


371



4.25
%


13,145



3.65
%


8,112



4.17
%






0.00
%SBA loan pools


6



5.45
%






0.00
%


547



5.45
%


99



4.99
%Mortgage-backed securities


791



4.41
%


3,573



4.56
%


18,895



4.29
%


16,638



4.91
%Mutual funds


30



2.98
%






0.00
%






0.00
%






0.00
%Total investment securities

$
14,249



4.77
%

$
30,478



4.46
%

$
27,554



4.28
%

$
16,737



4.91
%   Deposits
  year-over-year
 49




---



##### Table of Contents



Year Ended December 31,2007


2006


2005Average


Average


Average


Average


Average


AverageBalance


Rate


Balance


Rate


Balance


Rate(In thousands)Interest bearing demand

$
70,043



2.69
%

$
44,799



2.45
%

$
25,678



1.23
%Money market


506,669



4.54
%


350,386



4.09
%


254,793



2.42
%Savings


40,436



2.76
%


19,649



3.00
%


6,361



0.57
%Time


406,858



5.02
%


264,223



4.28
%


138,931



3.01
%Non-interest bearing deposits


196,225



0.00
%


184,726



0.00
%


152,912



0.00
%Total

$
1,220,231



3.80
%

$
863,783



3.16
%

$
578,675



1.85
%       Due in three months or less

$
43,623Due in over three months through six months


38,992Due in over six months through twelve months


87,028Due in over twelve months


2,021Total

$
171,664   Borrowings
      2007Date



Payments

Interest Rate

Maturity

AdvanceDecember 31, 2007

(A)

Interest and principal at maturity

Variable 3.30%

January 2, 2008

$
61,500February 7, 2006

(A)

Interest monthly, principal at maturity

Fixed 4.92%

February 9, 2009


20,000February 21, 2006

(A)

Interest monthly, principal at maturity

Fixed 5.00%

February 21, 2008


20,000March 23, 2006

(A)

Interest semi-annually, principal at maturity

Fixed 5.01%

March 23, 2009


1,000October 13, 2006

(A)

Interest semi-annually, principal at maturity

Fixed 4.07%

June 23, 2008


14,914January 18, 2007

(A)

Interest monthly, principal at maturity

Fixed 5.16%

January 20, 2009


15,000September 26, 2007

(C)

Interest and principal paid monthly

Variable 6.30%

September 26, 2010


14,270Total









$
146,684   50




---



##### Table of Contents



2006Date



Payments

Interest Rate

Maturity

AdvanceAugust 26, 2005

(A)

Interest semi-annually, principal at maturity

Fixed 3.49%

January 10, 2007

$
3,500August 31, 2006

(A)

Interest monthly, principal at maturity

Fixed 5.32%

August 31, 2007


15,000December 29, 2006

(B)

Interest and principal at maturity

Fixed 6.21%

January 2, 2007


3,440February 7, 2006

(A)

Interest monthly, principal at maturity

Fixed 4.92%

February 9, 2009


20,000February 21, 2006

(A)

Interest monthly, principal at maturity

Fixed 5.00%

February 21, 2008


20,000September 30, 2006

(A)

Interest monthly, principal at maturity

Fixed 5.01%

March 23, 2009


1,000October 13, 2006

(A)

Interest semi-annually, principal at maturity

Fixed 4.07%

June 23, 2008


14,755Total









$
77,695     (A)
    
    FHLB Advance(B)
    
    Unsecured federal funds purchase(C)
    
    Unsecured loan    30-day
    Capital
    Resources and Subordinated Debt
   51




---



##### Table of Contents



Regulatory Requirements


Actual at(Greater Than or Equal to


December 31, 2007State Percentage)


Community


CommunityMinimum


Well


Bank of


Bank of


CommunityRegulatory


Capitalized


Nevada


Arizona


BancorpTier 1 leverage capital


4.00
%


5.00
%


11.70
%


28.09
%


12.00
%Tier 1 risk-based capital


4.00
%


6.00
%


11.09
%


27.39
%


11.36
%Total risk-based capital


8.00
%


10.00
%


12.13
%


28.64
%


12.41
%   Trust Pass-Through
  30-day
       52




---



##### Table of Contents



Interest RateDate

Name of Trust

Payments

Fixed Rate

Floating Rate

Maturity

2007

2006September 26, 2002

Community Bancorp
    (NV) Statutory
    Trust I

Semi-annually

N/A

3-month LIBOR
    plus 3.40%


2032


$



$
15,464September 23, 2005

Community Bancorp

Quarterly

5.94% for first 7

3-month LIBOR


2035



20,619



20,619(NV) Statutory



years

plus 1.37%Trust IISeptember 21, 2006

Community Bancorp

Quarterly

6.78% for first 5

3-month LIBOR


2036



26,547



26,547(NV) Statutory



years

plus 1.60%Trust III,fixed portionSeptember 21, 2006

Community Bancorp

Quarterly

N/A

3-month LIBOR


2036



25,000



25,000(NV) Statutory





plus 1.60%Trust III,variable portion$
72,166


$
87,630   Consolidation of Variable
    Interest Entities
    Contractual
    Obligations and Off-Balance Sheet Arrangements
   53




---



##### Table of Contents



Less Than








AfterTotal


1 Year


1-3 Years


3-5 Years


5 Years(In thousands)Contractual ObligationsJunior subordinated deferrable interest debentures

$
72,166


$



$



$



$
72,166Borrowings


146,684



96,414



50,270







Operating lease obligations


10,271



1,765



3,123



2,514



2,869Total

$
229,121


$
98,179


$
53,393


$
2,514


$
75,035     Amount of Commitment Expiration Per PeriodTotalAmounts


Less Than








AfterCommitted


1 Year


1-3 Years


3-5 Years


5 Years(In thousands)Other CommitmentsCommitments to extend credit

$
430,093


$
228,826


$
131,793


$
54,434


$
15,040Credit cards


818







818







Standby letters of credit


4,083



4,083











Total

$
434,994


$
232,909


$
132,611


$
54,434


$
15,040   Interest
    Rate Swaps to Manage the Companys Interest Rate
    Risk
    mark-to-market
    Liquidity
    Management
  available-for-sale
 54




---



##### Table of Contents



and/or
  and/or
  60-90 days. available-for-sale
            Quantitative
    and Qualitative Disclosures About Market Risk
   55




---



##### Table of Contents



Market Value of Portfolio Equity.
    Market
    Value of Portfolio Equity
  Percentage





Percentage ofEconomic


Change


Percentage of


EquityInterest Rate Scenario

Value


from Base


Total Assets


Book Value(In thousands, except percentage data)Up 300 basis points

$
237,476



(2.84
)%


14.02
%


101.00%Up 200 basis points

$
240,118



(1.76
)%


14.18
%


102.13%Up 100 basis points

$
242,153



(0.93
)%


14.30
%


102.99%BASE

$
244,417







14.43
%


103.95%Down 100 basis points

$
247,699



1.34
%


14.63
%


105.35%Down 200 basis points

$
256,631



5.00
%


15.15
%


109.15%Down 300 basis points

$
266,539



9.05
%


15.74
%


113.36%     Sensitivity of Net Interest Income.
 56




---



##### Table of Contents



Sensitivity
    of Net Interest Income
  Adjusted


Percentage





Net Interest MarginNet Interest


Change


Net Interest


ChangeInterest Rate Scenario

Income(1)


from Base


Margin(2)


(in basis points)(In thousands, except percentage data)Up 300 basis points

$
68,547



4.17
%


4.69%



18Up 200 basis points

$
67,257



2.21
%


4.61%



10Up 100 basis points

$
65,769



(0.05
)%


4.50%



(1
)BASE

$
65,802







4.51%Down 100 basis points

$
68,384



3.93
%


4.68%



17Down 200 basis points

$
70,876



7.71
%


4.85%



34Down 300 basis points

$
72,527



10.22
%


4.97%



46     (1)
    
    Excludes loan fees.(2)
    
    These percentages are not comparable to other information
    discussing the percent of net interest margin since the income
    simulation does not take into account loan fees.   57




---



##### Table of Contents



Gap Analysis.
   58




---



##### Table of Contents



December 31, 2007Amounts Maturing or Re-pricing inOver


Over3 Months


1 Year





Non-3 Months


to


to


Over


Sensitiveor Less


12 Months


5 Years


5 Years


(1)


Total(In thousands, except percentage data)AssetsInterest-bearing due from banks

$
141


$



$



$



$



$
141Federal funds sold


20



















20Investment securities


38,138



15,825



40,617



8,352



100



103,032Loans


998,641



136,067



213,201



56,792



(7,811
)


1,396,890Non-earning assets


















193,438



193,438Total assets

$
1,036,940


$
151,892


$
253,818


$
65,144


$
185,727


$
1,693,521Liabilities and Stockholders EquityNon-interest bearing demand deposits

$



$



$



$



$
170,725


$
170,725Interest bearing demand, money market and savings


701,032



















701,032Time certificates of deposit


98,542



251,521



8,642











358,705Borrowings


82,703



18,870



45,111











146,684Junior subordinated debt


25,000







45,000







2,166



72,166Non-earning liabilities


















9,090



9,090Stockholders equity


















235,119



235,119Total liabilities and stockholders equity

$
907,277


$
270,391


$
98,753


$



$
417,100


$
1,693,521Period gap

$
129,663


$
(118,499
)

$
155,065


$
65,144Cumulative interest earning assets


1,036,940



1,188,832



1,442,650



1,507,794Cumulative interest bearing liabilities


907,277



1,177,668



1,276,421



1,276,421Cumulative gap


129,663



11,164



166,229



231,373Cumulative interest earning assets to cumulative interest
    bearing liabilities


114.3
%


100.9
%


113.0
%


118.1
%Cumulative gap as a percent of:Total assets


7.66
%


0.66
%


9.82
%


13.66
%Interest earning assets


8.60
%


0.74
%


11.02
%


15.34
%     (1)
    
    Assets or liabilities and equity which are not interest
    rate-sensitive.   59




---



##### Table of Contents



ITEM 7A.
    QUANTITATIVE
    AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK  Regulation S-K
  ITEM 8.
    FINANCIAL
    STATEMENTS AND SUPPLEMENTARY DATA  page F-1.
  ITEM 9.
    CHANGES
    IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
    FINANCIAL DISCLOSURE    ITEM 9A.
    CONTROLS
    AND PROCEDURES  Rule 13a-15(b),
     60




---



##### Table of Contents



Managements
    Report on Internal Control Over Financial Reporting
    Internal
    Control  Integrated Framework issued by the Committee
    of Sponsoring Organizations of the Treadway Commission
  Form 10-K,
    /s/  Edward
    M. Jamison

/s/  Patrick
    HartmanEdward M. Jamison
    President and Chief Executive Officer

Patrick Hartman
    Executive Vice President and Chief Financial Officer  61




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
     Internal Control  Integrated Framework
        Internal Control  Integrated Framework
        62




---



##### Table of Contents



ITEM 9B.
    OTHER
    INFORMATION   PART III  ITEM 10.
    DIRECTORS
    AND EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE  http://www.communitybanknv.com. Form 8-K http://www.communitybanknv.com
      ITEM 11.
    EXECUTIVE
    COMPENSATION    ITEM 12.
    SECURITY
    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
    RELATED STOCKHOLDER MATTERS    ITEM 13.
    CERTAIN
    RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
    INDEPENDENCE    ITEM 14.
    PRINCIPAL
    ACCOUNTING FEES AND SERVICES   63




---



##### 



PART IV  ITEM 15.
    EXHIBITS,
    FINANCIAL STATEMENT SCHEDULES  Documents Filed as Part of this Report
     
 PageConsolidated Balance Sheets


F-2Consolidated Statements of Income


F-3Consolidated Statement of Stockholders
    Equity


F-4Consolidated Statements of Cash Flows


F-5Notes to Consolidated Financial Statements


F-6Report of Independent Registered Public
    Accounting Firm from Grant Thornton LLP


F-40Report of Independent Registered Public
    Accounting Firm from McGladrey & Pullen, LLP


F-41    Financial Statement Schedules
    Exhibits
  2
.1

Agreement to Merge and Plan of Reorganization, dated June 28,
    2006, by and between Community Bancorp and Valley Bancorp(4)3
.1

Certificate of Incorporation, as amended, of Community Bancorp(1)3
.1.1

Amendment to Certificate of Incorporation(1)3
.2

Bylaws of Community Bancorp(1)4
.1

Specimen Share Certificate for Common Stock(1)4
.2

Amended and Restated Declaration of Trust, dated September 21,
    2006(5)4
.3

Indenture, dated September 2006(5)10
.1

1995 Stock Option and Award Plan(1)10
.2

Form of 1995 Stock Option and Award Plan Option Agreement(1)10
.3

2000 Stock Appreciation Rights Plan(1)10
.4

Lease Agreement, City Centre branch and administrative office
    lease, dated April 5, 2002, as amended(1)10
.5

Agreement for Information Technology Services between Community
    Bank of Nevada and Aurum Technology, Inc., dated August 15,
    2001, as amended(1)10
.6

Community Bank of Nevada 401(k) Profit Sharing Plan(1)10
.7

Employment Agreement with Edward M. Jamison(1)10
.8

Employment Agreement with Cathy Robinson(1)10
.9

Employment Agreement with Lawrence Scott(1)10
.10

2005 Equity Based Compensation Plan and form award agreements(3)14
.1

Code of Conduct(2)21
.1

List of subsidiaries23
.1

Consent of Grant Thornton LLP23
.2

Consent of McGladrey & Pullen, LLP31
.1

Rule 13a-14(a) Certification by Chief Executive Officer 64




---



##### Table of Contents



31
.2

Rule 13a-14(a) Certification by Chief Financial Officer32
.1

Section 1350 Certifications     (1)
    
    Included in the Companys
    S-1
    Registration Statements and amendments thereto
    (333-119395),
    originally filed September 30, 2004, as amended on November
    15 and 24, 2004.(2)
    
    Included in the Companys Annual Report on
    Form 10-K
    for the year ended December 31, 2004, filed on
    March 30, 2005.(3)
    
    Included in the Companys Registration Statement
    (No. 333-126602)
    on
    Form S-8,
    filed on February 14, 2006.(4)
    
    Included in the Companys Current Report on
    Form 8-K
    filed on June 30, 2006.(5)
    
    Included in the Companys Current Report on
    Form 8-K
    filed on September 28, 2006. 65




---



##### Table of Contents



SIGNATURES      By:
    /s/  Edward
    M. Jamison   President and Chief Executive Officer
 (Principal Executive Officer)
      By:
    /s/  Patrick
    Hartman  Patrick Hartman
 Executive Vice President
 and Chief Financial Officer
 (Principal Financial Officer)
 (Principal Accounting Officer)
      Signature

Capacity/s/  Edward
    M. JamisonEdward
    M. Jamison

Chairman of the Board, President and Chief Executive Officer
    (Principal Executive Officer)/s/  Patrick
    HartmanPatrick
    Hartman

Executive Vice President and Chief Financial Officer
    (Principal Financial and Accounting Officer)/s/  Lawrence
    ScottLawrence
    Scott

Executive Vice President, Chief Operating Officer and Director/s/  Dan
    H. StewartDan
    H. Stewart

Director/s/  Gary
    W. StewartGary
    W. Stewart

Director 66




---



##### Table of Contents



Signature

Capacity/s/  Russell
    C. TaylorRussell
    C. Taylor

Director/s/  Jacob
    BinghamJacob
    Bingham

Director/s/  Jack
    WoodcockJack
    Woodcock

Director  67




---



##### 



INDEX TO
    FINANCIAL STATEMENTS
  Financial
    Statements
   
 PageConsolidated Balance Sheets


F-2Consolidated Statements of Income


F-3Consolidated Statement of Stockholders
    Equity


F-4Consolidated Statements of Cash Flows


F-5Notes to Consolidated Financial Statements


F-6Report of Independent Registered Public
    Accounting Firm from Grant Thornton LLP


F-40Report of Independent Registered Public
    Accounting Firm from McGladrey & Pullen, LLP


F-41   F-1




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES



CONSOLIDATED BALANCE SHEETS

As of December 31,  2007


2006(In thousands,except share data)ASSETSCash and due from banks

$
19,243


$
28,694Interest bearing deposits in other banks


141



8,501Federal funds sold


20



8,921Cash and cash equivalents


19,404



46,116Securities available for sale, at fair value


88,217



107,849Securities held to maturity, at amortized cost (fair value of
    $817 as of December 31, 2007 and $1,334 as of
    December 31, 2006)


801



1,309Required equity investments, at cost


14,014



6,589Loans, net of allowance for loan losses of $17,098 as of
    December 31, 2007 and $14,973 as of December 31, 2006


1,396,890



1,234,841Premises and equipment, net


27,535



24,133Accrued interest and dividends receivable


8,046



7,668Deferred income taxes, net


1,503



875Bank owned life insurance


10,521



10,071Goodwill


113,636



115,865Core deposit intangible, net of accumulated amortization of
    $2,478 as of December 31, 2007 and $1,138 as of
    December 31, 2006


7,481



8,821Other assets


5,473



6,242Total assets

$
1,693,521


$
1,570,379LIABILITIES AND STOCKHOLDERS EQUITYLiabilitiesDeposits:Non-interest bearing

$
170,725


$
205,115Interest bearing:Demand


672,567



510,454Savings


28,465



60,480Time, $100,000 or more


171,664



164,954Other time


187,041



235,273Total deposits


1,230,462



1,176,276Borrowings


146,684



77,695Accrued interest payable and other liabilities


9,090



9,907Junior subordinated debt


72,166



87,630Total liabilities


1,458,402



1,351,508Commitments and Contingencies (Note 11)Stockholders equityCommon stock, par value: $0.001; shares authorized: 30,000,000;
    shares issued:10,620,529 as of December 31, 2007 (including
    161,137 shares of unvested restricted stock) and 10,423,188
    as of December 31, 2006


11



10Additional paid-in capital


168,931



167,359Retained earnings


72,797



52,402Accumulated other comprehensive income (loss), net of tax


64



(615
)241,803



219,156Less cost of treasury stock, 350,575 shares as of
    December 31, 2007 and 34,375 shares as of
    December 31, 2006


(6,684
)


(285
)Total stockholders equity


235,119



218,871Total liabilities and stockholders equity

$
1,693,521


$
1,570,379    F-2




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES



CONSOLIDATED STATEMENTS OF INCOME

For the year ended December 31,  2007


2006


2005(In thousands, except per share data)Interest and dividend income:Loans, including fees

$
121,017


$
79,547


$
40,973Securities and investments


5,520



4,475



3,626Federal funds sold


1,488



2,467



1,738Total interest and dividend income


128,025



86,489



46,337Interest expense on:Deposits


46,395



27,326



10,713Borrowings


4,911



2,888



405Junior subordinated debt


5,841



3,551



1,393Total interest expense


57,147



33,765



12,511Net interest income before provision for loan losses


70,878



52,724



33,826Provision for loan losses


3,355



3,509



1,085Net interest income after provision for loan losses


67,523



49,215



32,741Non-interest income:Service charges and other income


2,518



1,913



1,687Bank owned life insurance


451



373



504Net swap settlements


182



151



Rental income


175



145



Gain on sale of securities


4



2



Net gain on sale of loans


292



41



84Total non-interest income


3,622



2,625



2,275Non-interest expense:Salaries, wages and employee benefits


22,328



15,028



12,652Occupancy, equipment and depreciation


5,123



3,573



2,173Core deposit intangible amortization


1,340



884



254Data processing


1,088



931



730Advertising and public relations


1,830



1,172



909Professional fees


1,713



1,341



1,415Telephone and postage


809



390



229Stationery and supplies


733



485



377Directors fees


522



781



284Insurance


699



400



285Software maintenance


457



252



102Loan related


327



215



171Loss on interest rate swap


380







Foreclosed assets, net










(234
)Other operating expenses


2,378



2,168



1,165Total non-interest expense


39,727



27,620



20,512Income before income tax provision


31,418



24,220



14,504Income tax provision


11,023



8,581



4,439Net income

$
20,395


$
15,639


$
10,065EARNINGS PER SHARE:Basic

$
1.96


$
1.95


$
1.45Diluted

$
1.95


$
1.92


$
1.42    F-3




---



##### Table of Contents






COMMUNITY
    BANCORP AND SUBSIDIARIES



CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY

For the years ended December 31, 2007, 2006 and 2005

(In thousands, except share data)  Common Stock


Additional





OtherComprehensive


Restricted


Outstanding





Paid-in


Retained


Comprehensive


Treasury


NotesDescription

Income


Shares


Shares


Amount


Capital


Earnings


Income (Loss)


Stock


Receivable


TotalBalance, December 31, 2004










6,747,673


$
7


$
51,245


$
26,698


$
174


$
(285
)

$
(286
)

$
77,553Comprehensive income:Net income

$
10,065



















10,065















10,065Unrealized holding losses on securities available for sale
    arising during the period, net of taxes of ($572)


(1,109
)






















(1,109
)










(1,109
)$
8,956Stock options exercised










18,524







105



















105Tax benefit related to the disqualifying disposition of
    incentive stock options


















5



















5Stock issuance for Bank of Commerce acquisition, net of
    registration costs of approximately ($160)










608,515







19,844



















19,844Repayment of loans secured by stock


































286



286Balance, December 31, 2005










7,374,712



7



71,199



36,763



(935
)


(285
)






106,749Comprehensive income:Net income

$
15,639



















15,639















15,639Unrealized holding gains on securities available for sale
    arising during the period, net of taxes of ($163)


321























321











321Reclassification adjustment for realized gains, net of taxes of
    ($1)


(1
)






















(1
)










(1
)$
15,959Stock options exercised










21,427







227



















227Share-based compensation


















1,139



















1,139Tax benefit related to the exercise of stock options


















128



















128Stock issuance for Valley Bank acquisition,net of registration costs of approximately ($168)










2,992,674



3



94,666



















94,669Balance, December 31, 2006










10,388,813



10



167,359



52,402



(615
)


(285
)






218,871Comprehensive income:Net income

$
20,395



















20,395















20,395Unrealized holding gains on securities available for sale
    arising during the period, net of taxes of ($366)


679























679











679$
21,074Stock options exercised










36,204







322



















322Share-based compensation


















1,192



















1,192Treasury stock acquired










(316,200
)


















(6,399
)






(6,399
)Tax benefit related to the exercise of stock options


















58



















58Restricted stock issuance, net of forfeitures of
    2,058 shares






161,137







1























1Balance, December 31, 2007






161,137



10,108,817


$
11


$
168,931


$
72,797


$
64


$
(6,684
)

$



$
235,119      F-4




---



##### Table of Contents





COMMUNITY
    BANCORP AND SUBSIDIARIES



CONSOLIDATED STATEMENTS OF CASH FLOWS

For the year ended December 31,  2007


2006


2005(In thousands)Cash flows from operating activities:Net income

$
20,395


$
15,639


$
10,065Adjustments to reconcile net income to net cash provided by
    operating activities:Depreciation of premises and equipment


1,960



1,447



925Gain on sales of fixed assets


(20
)


(25
)


(2
)Amortization of core deposit intangible


1,340



884



254Mark-to-market
    adjustment on interest swaps


380







Gain on foreclosed assets










(262
)Income from bank owned life insurance


(451
)


(373
)


(504
)Gain on sales of loans


(292
)


(41
)


(84
)Gain on sale of securities


(4
)


(2
)


Proceeds from sales of loans held for sale


3,559



2,004



1,466Originations of loans held for sale


(2,458
)


(1,963
)


(1,382
)Deferred taxes, net


(843
)


(1,201
)


103Provision for loan losses


3,355



3,509



1,085Tax benefit related to exercise of stock options










5Stock-based compensation expense


1,192



1,139



Net amortization (accretion) of investment premium and discount


(120
)


70



440Increase in accrued interest receivable


(378
)


(1,952
)


(1,174
)Decrease (increase) in other assets


2,834



(842
)


(337
)(Decrease) increase in accrued interest payable and other
    liabilities


(1,196
)


3,195



733Income from required equity investments  stock
    dividends


(266
)


(121
)


(91
)Net cash provided by operating activities


28,987



21,367



11,240Cash flows from investing activities:Net increase in loans


(166,395
)


(222,646
)


(154,523
)Payments received from net swap settlements


182







Proceeds from maturities of and principal paydowns on securities
    held to maturity


508



257



392Purchase of securities available for sale


(5,717
)


(5,118
)


(12,481
)Proceeds from maturities of and principal paydowns on securities
    available for sale


23,260



27,170



21,235Proceeds from sale of securities available for sale


3,272



2



Net investment in required equity investments


(7,159
)


(2,457
)


271Purchase of premises and equipment


(5,362
)


(891
)


(3,202
)Proceeds from sale of foreclosed assets










2,453Proceeds from sale of premises and equipment


20



25



2Cash paid for acquisitions, net






(25,981
)


(6,213
)Net cash used in investing activities


(157,391
)


(229,639
)


(152,066
)Cash flows from financing activities:Net increase in borrowings


54,719



42,081



9,650Net increase in deposits


54,186



75,216



130,595Proceeds from issuance of long-term subordinated debentures






50,000



20,000Proceeds from issuance of long-term debt


15,464







Repayment of long-term debt


(1,194
)Proceeds from repayment of loans secured by stock










286Redemption of long-term subordinated debentures


(15,464
)






Purchase of treasury stock


(6,399
)






Excess tax benefit related to exercise of stock options


58



128



Cost of issuing stock in acquisitions






(168
)


(160
)Proceeds from exercise of stock options


322



227



105Net cash provided by financing activities


101,692



167,484



160,476Net increase (decrease) in cash and cash equivalents


(26,712
)


(40,788
)


19,650Cash and cash equivalents, beginning of the year


46,116



86,904



67,254Cash and cash equivalents, end of the period

$
19,404


$
46,116


$
86,904Supplemental disclosure of cash flow information:Interest paid

$
56,998


$
31,794


$
12,054Income taxes paid

$
13,124


$
9,645


$
4,000Supplemental disclosure of noncash investing and financing
    activities:Change in unrealized gain (loss) on investment securities
    available for sale

$
1,059


$
484


$
(1,681
)    F-5




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES



NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS  Note 1.
    Nature of
    Business  Nature
    of Business
            Note 2.
    Summary
    of Significant Accounting Policies  Basis
    of Presentation and Consolidation
  Consolidation of Variable Interest Entities
  Use of
    Estimates
    Cash
    and Cash Equivalents
   F-6




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Investment
    Securities
  available-for-sale available-for-sale
  held-to-maturity
  other-than-temporary other-than-temporary
  Required
    Equity Investments
    Loans
       F-7




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Allowance
    for loan losses
      non-classified Accounting for Contingencies. ,
    Accounting by Creditors for Impairment of a Loan.
  and/or and/or
      Loan
    Brokerage and Referral Fees
   F-8




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Transfers
    of Financial Assets
    Premises
    and Equipment
    Other
    Real Estate Owned
    Bank
    Owned Life Insurance
    Goodwill
    and Core Deposit Intangible
       F-9




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Off-Balance
    Sheet Instruments
    Employee
    Stock Plans
  Share-Based Payment Share-Based Payment
  Accounting for Stock
    Issued to Employees
  Accounting for Stock-Based
    Compensation
  No. 00-15, Classification in the Statement of Cash Flows of the Income
    Tax Benefit Received by a Company upon Exercise of a
    Nonqualified Employee Stock Option
 F-10




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Year EndedDecember 31, 2005(In thousands, exceptearnings per share)Net income:As reported

$
10,065Deduct total share-based compensation expensed determined under
    the fair value method for all awards granted, net of related tax
    effects


(534
)Pro forma

$
9,531Earnings per share:As reported:Basic

$
1.45Diluted

$
1.42Pro forma:Basic

$
1.37Diluted

$
1.34   Advertising
    costs
    Income
    Taxes
    Comprehensive
    Income
  available-for-sale available-for-sale Other-than-temporary
  Reclassifications
   F-11




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Recent
    Accounting Pronouncements
  Accounting for Uncertainty in Income
    Taxes  an Interpretation of FASB Statement
    No. 109 Accounting for Income Taxes FIN 48-1, Definition of Settlement in FASB Interpretation
    No. 48
  Fair Value Measurements
  06-5, Accounting for Purchases of Life Insurance-Determining the
    Amount That Could Be Realized in Accordance with FASB Technical
    Bulletin No. 85-4,
    Accounting for Purchases of Life Insurance (EITF 06-5). EITF 06-5 EITF 06-5 EITF 06-5
  The
    Fair Value Option for Financial Assets and Financial
    Liabilities-Including an Amendment of FASB Statement
    No. 115. not-for-profit
 F-12




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Note 3.
    Acquisition
    Activity    CommunityBank of


Bank of


ValleyCommerce


Arizona


BancorpAugust 26,


September 30,


October 13,2005


2006


2006(In thousands)Cash and cash equivalents

$
14,267


$
4,188


$
27,379Securities


22,391



6,079



30,632Loans, net of allowance


103,125



31,170



332,571Goodwill and core deposit intangible


25,029



9,887



91,738Other assets


5,887



879



12,376Deposits


(118,241
)


(37,245
)


(338,727
)Borrowings


(9,500
)


(1,000
)


(15,114
)Deferred income taxes, net










(1,003
)Other liabilities


(2,474
)


(358
)


(1,067
)Net assets acquired

$
40,484


$
13,600


$
138,785Value of transactionFair value of common stock issued

$
20,004


$



$
94,837Cash


20,004



13,326



42,680Total consideration paid by the Company


40,008



13,326



137,517Direct costs of acquisition


476



274



1,268Total cost of acquisition


40,484



13,600



138,785Less fair value of net tangible assets acquired


(15,455
)


(3,713
)


(47,047
)Less estimated fair value of core deposit intangible


(5,331
)


(415
)


(4,213
)Estimated goodwill resulting from the transaction

$
19,698


$
9,472


$
87,525   Bank
    of Commerce
     F-13




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Community
    Bank of Arizona (formerly Cactus Commerce Bank)
      Valley
    Bancorp
     F-14




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Unaudited
    Pro Forma Information for Acquisitions
    For the Year EndedDecember 31, 2006


December 31, 2005(In thousands)Net interest income

$
69,872


$
55,413Provision for loan losses


3,925



2,705Net interest income after provision for loan losses


65,947



52,708Non-interest income


2,931



3,180Non-interest expense


40,172



33,536Income before income tax provision


28,706



22,352Income tax provision


10,264



7,108Net income

$
18,442


$
15,244Basic earnings per share

$
1.78


$
1.47Diluted earnings per share

$
1.76


$
1.45   Goodwill
    and other Intangible Assets
      2007


2006(In thousands)Balance  January 1,

$
115,865


$
19,698Additions due to acquisitions






96,997Additions (decreases) due to additional fair value adjustments
    and merger related costs


94



(367
)Decreases due to deferred income tax and other tax adjustments


(2,323
)


(463
)Balance  December 31,

$
113,636


$
115,865  F-15




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      2007


2006(In thousands)Gross amountBalance  January 1,

$
9,959


$
5,331Additions due to acquisitions






4,628Balance  December 31,


9,959



9,959Accumulated amortizationBalance  January 1,


1,138



254Amortization


1,340



884Balance  December 31,


2,478



1,138Balance  December 31,

$
7,481


$
8,821   Note 4.
    Restrictions
    on Cash and Due from Banks    Note 5.
    Securities  available-for-sale
  2007Amortized


Unrealized


Unrealized


FairCost


Gains


(Losses)


Values(In thousands)U.S. Government-sponsored agencies

$
26,537


$
285


$
(11
)

$
26,811Municipal bonds


20,750



259



(27
)


20,982SBA loan pools


501







(4
)


497Mortgage-backed securities


40,300



163



(566
)


39,897Mutual funds


30











30$
88,118


$
707


$
(608
)

$
88,217   F-16




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  2006Amortized


Unrealized


Unrealized


FairCost


Gains


(Losses)


Values(In thousands)U.S. Government-sponsored agencies

$
37,963


$
143


$
(149
)

$
37,957Municipal bonds


21,312



221



(107
)


21,426SBA loan pools


576







(3
)


573Mortgage-backed securities


47,727



122



(1,160
)


46,689Mutual funds


1,204











1,204$
108,782


$
486


$
(1,419
)

$
107,849   held-to-maturity
  2007Amortized


Unrealized


Unrealized


FairCost


Gains


(Losses)


Values(In thousands)Municipal bonds

$
646


$
15


$



$
661SBA loan pools


155



1







156$
801


$
16


$



$
817   2006Amortized


Unrealized


Unrealized


FairCost


Gains


(Losses)


Values(In thousands)Municipal bonds

$
1,070


$
23


$



$
1,093SBA loan pools


239



2







241$
1,309


$
25


$



$
1,334   available-for-sale held-to-maturity
  2007Available for Sale


Held to MaturityAmortized


Fair


Amortized


FairCost


Value


Cost


Value(In thousands)Due within one year

$
13,272


$
13,312


$
110


$
111Due after one year through five years


26,537



26,884



20



20Due after five years through ten years


7,478



7,597



515



530Due after ten years














Mortgage-backed securities and SBA loan pools


40,801



40,394



156



156Mutual funds


30



30







$
88,118


$
88,217


$
801


$
817  F-17




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  available-for-sale Borrowed
    Funds
  available-for-sale
  2007Less ThanTwelve Months


Over Twelve Months


TotalsGross





Gross





GrossUnrealized


Fair


Unrealized


Fair


Unrealized


Fair(Losses)


Value


(Losses)


Value


(Losses)


Value(In thousands)U. S. Government-sponsored agencies

$



$



$
(11
)

$
5,487


$
(11
)

$
5,487Municipal bonds










(27
)


3,316



(27
)


3,316SBA loan pools










(4
)


491



(4
)


491Mortgage-backed securities


(A
)


371



(566
)


27,363



(566
)


27,734$



$
371


$
(608
)

$
36,657


$
(608
)

$
37,028     (A)
    
    Less than $1,000  2006Less ThanTwelve Months


Over Twelve Months


TotalsGross





Gross





GrossUnrealized


Fair


Unrealized


Fair


Unrealized


Fair(Losses)


Value


(Losses)


Value


(Losses)


Value(In thousands)U. S. Government-sponsored agencies

$
(1
)

$
2,284


$
(148
)

$
12,807


$
(149
)

$
15,091Municipal bonds


(8
)


2,615



(99
)


6,774



(107
)


9,389SBA loan pools










(3
)


568



(3
)


568Mortgage-backed securities


(4
)


1,863



(1,156
)


33,492



(1,160
)


35,355$
(13
)

$
6,762


$
(1,406
)

$
53,641


$
(1,419
)

$
60,403   available-for-sale
  other-than-temporary
 F-18




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Note 6.
    Loans    December 31,


December 31,2007


2006(In thousands)Commercial and industrial

$
210,614


$
177,583Real estate:Commercial


370,464



347,072Residential


43,212



35,150Construction and land development


789,185



686,267Consumer and other


5,707



7,139Total gross loans


1,419,182



1,253,211Less:Allowance for loan losses


17,098



14,973Net unearned loan fees and discounts


5,194



3,397Total net loans

$
1,396,890


$
1,234,841     2007


2006


2005(In thousands)Balance at beginning of period

$
14,973


$
8,117


$
6,133Provision for loan losses


3,355



3,509



1,085Allowance resulting from acquisition






3,816



933Less amounts charged off


(1,552
)


(661
)


(220
)Recoveries of amounts charged off


322



192



186Balance at end of period

$
17,098


$
14,973


$
8,117  F-19




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    2007


2006


2005(In thousands)Impaired loans with a valuation allowance

$
3,097


$
811


$
820Impaired loans without a valuation allowance


26,702



5,239



1,291Total impaired loans

$
29,799


$
6,050


$
2,111Average balance of impaired loans

$
15,163


$
5,889


$
2,220Related valuation allowance

$
1,283


$
232


$
336Nonaccrual loans

$
12,076


$
647


$
912Loans past due 90 days or more and still accruing interest

$



$



$
3Interest income recognized on impaired loans

$
1,551


$
491


$
227Interest income recognized on a cash basis on impaired loans

$
948


$
398


$
195   Note 7.
    Premises
    and Equipment    2007


2006(In thousands)Land

$
8,825


$
6,395Buildings and improvements


17,395



16,289Equipment and furniture


8,416



6,729Automobiles


314



30334,950



29,716Less accumulated depreciation


(7,415
)


(5,583
)Premises and equipment, net

$
27,535


$
24,133   Note 8.
    Deposits    (In thousands)2008

$
350,0652009


7,8852010


5692011


1052012


812013 and thereafter


Total

$
358,705    F-20




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Note 9.
    Borrowed
    Funds      2007Date



Payments

Interest Rate

Maturity

AdvanceDecember 31, 2007

(A)

Interest and principal at maturity

Variable 3.30%

January 2, 2008

$
61,500February 7, 2006

(A)

Interest monthly, principal at maturity

Fixed 4.92%

February 9, 2009


20,000February 21, 2006

(A)

Interest monthly, principal at maturity

Fixed 5.00%

February 21, 2008


20,000March 23, 2006

(A)

Interest semi-annually, principal at maturity

Fixed 5.01%

March 23, 2009


1,000October 13, 2006

(A)

Interest semi-annually, principal at maturity

Fixed 4.07%

June 23, 2008


14,914January 18, 2007

(A)

Interest monthly, principal at maturity

Fixed 5.16%

January 20, 2009


15,000September 26, 2007

(C)

Interest and principal paid monthly

Variable 6.30%

September 26, 2010


14,270Total









$
146,684   2006Date



Payments

Interest Rate

Maturity

AdvanceAugust 26, 2005

(A)

Interest semi-annually, principal at maturity

Fixed 3.49%

January 10, 2007

$
3,500August 31, 2006

(A)

Interest monthly, principal at maturity

Fixed 5.32%

August 31, 2007


15,000December 29, 2006

(B)

Interest and principal at maturity

Fixed 6.21%

January 2, 2007


3,440February 7, 2006

(A)

Interest monthly, principal at maturity

Fixed 4.92%

February 9, 2009


20,000February 21, 2006

(A)

Interest monthly, principal at maturity

Fixed 5.00%

February 21, 2008


20,000September 30, 2006

(A)

Interest monthly, principal at maturity

Fixed 5.01%

March 23, 2009


1,000October 13, 2006

(A)

Interest semi-annually, principal at maturity

Fixed 4.07%

June 23, 2008


14,755Total









$
77,695     (A)
    
    FHLB Advance(B)
    
    Unsecured federal funds purchase(C)
    
    Unsecured loan   F-21




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  30-day
  Note 10.
    Junior
    Subordinated Debt    Interest RateDate

Name of Trust

Payments

Fixed

Floating

Maturity


2007


2006(In thousands)September 26, 2002

Community Bancorp (NV)-Statutory Trust I

Semi-annually

N/A

3 month LIBOR plus 3.40%


2032


$



$
15,464September 23, 2005

Community Bancorp (NV)-Statutory Trust II

Quarterly

5.94% for first
    7 years

3 month LIBOR plus 1.37%


2035



20,619



20,619September 21, 2006

Community Bancorp (NV)-Statutory Trust III,
    fixed portion

Quarterly

6.78% for first
    5 years

3 month LIBOR plus 1.60%


2036



26,547



26,547September 21, 2006

Community Bancorp (NV)-Statutory Trust III,
    variable portion

Quarterly

N/A

3 month LIBOR plus 1.60%


2036



25,000



25,000(1) The
    3-month
    LIBOR rate at December 31, 2007 was 4.98%











$
72,166


$
87,630         Note 11.
    Commitments
    and Contingencies  Financial
    Instruments with Off-Balance Sheet Risk
   F-22




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      2007


2006(In thousands)Commitments to extend credit, including unsecured commitments of
    approximately $28,137 for 2007 and $26,925 for 2006

$
430,093


$
351,236Credit card commitments, including unsecured amounts of
    approximately $818 for 2007 and $2,047 for 2006


818



2,064Standby letters of credit, including unsecured commitments of
    approximately $2,485 for 2007 and $480 for 2006


4,083



5,673$
434,994


$
358,973   case-by-case
  Accounting for
    Contingencies
    Financial
    Instruments with Concentrations of Credit Risk
  loan-to-value
 F-23




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      Contingencies
    Lease
    Commitments
      2008

$
1,7652009


1,5952010


1,5282011


1,4082012


1,106Thereafter


2,869$
10,271     5-year
  Bulletin No. 88-1, Issues Relating to Accounting for Leases
    Employment
    Agreements
   F-24




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Note 12.
    Derivative
    Financial Instruments      Accounting for Derivative
    Instruments and Hedging Activities Accounting for Certain Hybrid
    Financial Instruments
    Note 13.
    Fair
    Value of Financial Instruments  Disclosures about Fair Value of
    Financial Instruments,
       F-25




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Cash
    and Cash Equivalents
    Securities
  available-for-sale
  Required
    Equity Investments
    Loans
    Accrued
    Interest Receivable and Payable
    Deposits
    Borrowings
   F-26




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Junior
    Subordinated Debt
    Off-Balance
    Sheet Instruments
      2007


2006Carrying


Fair


Carrying


FairAmount


Value


Amount


Value(In thousands)Assets:Cash and cash equivalents

$
19,404


$
19,404


$
46,116


$
46,116Securities available for sale


88,217



88,217



107,849



107,849Securities held to maturity


801



817



1,309



1,334Required equity investments


14,014



14,014



6,589



6,589Loans, net of allowance for loan losses (1)


1,396,890



1,389,886



1,234,841



1,222,388Accrued interest receivable


8,046



8,046



7,668



7,668Derivative financial instruments


56



56



1,000



1,000Liabilities:Deposits


1,230,462



1,232,301



1,176,276



1,177,606Borrowings


146,684



147,090



77,695



77,204Accrued interest payable


2,909



2,909



2,761



2,761Junior subordinated debt


72,166



68,925



87,630



86,362Derivative financial instruments


436



436



1,000



1,000     (1)
    
    Includes fair value of lending commitments and standby letters
    of credit of $435.0 million and $434.5 million, respectively,
    for the year ended December 31, 2007. F-27




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   Note 14.
    Income
    Tax Matters    2007


2006(In thousands)Deferred tax assets:Allowance for loan losses

$
5,824


$
5,055Unrealized loss on securities available for sale






533Acquisition costs


1,026



Fair value adjustment of assets acquired


71



433Share-based compensation expense


330



340Total deferred tax assets


7,251



6,361Deferred tax liabilities:Premises and equipment


(1,826
)


(1,879
)Deferred loan costs , net


(980
)


(396
)FHLB dividend


(277
)


(140
)Core deposit intangible


(2,485
)


(2,944
)Unrealized gain on securities available for sale


(35
)


Other


(145
)


(127
)Total deferred tax liabilities


(5,748
)


(5,486
)Net deferred tax assets

$
1,503


$
875       2007


2006


2005(In thousands)Current

$
11,866


$
9,782


$
4,336Deferred


(843
)


(1,201
)


103$
11,023


$
8,581


$
4,439  F-28




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    2007


2006


2005(In thousands)Computed expected tax expense

$
10,996



35
%

$
8,477



35
%

$
5,076



35
%Adjustments to income tax resulting from:Tax-exempt interest income


(379
)


(1
)%


(293
)


(2
)%


(444
)


(3
)%State taxes, net of federal benefit


124



0
%


175



1
%






0
%Other


282



1
%


222



1
%


(193
)


(2
)%$
11,023



35
%

$
8,581



35
%

$
4,439



30
%     Note 15.
    Earnings
    Per Share      2007


2006


2005Average








Average








AverageNet


Number


Per Share


Net


Number


Per Share


Net


Number


Per ShareIncome


of Shares


Amounts


Income


of Shares


Amounts


Income


of Shares


Amounts(In thousands, except earnings per share)Basic EPS

$
20,395



10,359


$
1.96


$
15,639



8,037


$
1.95


$
10,065



6,965


$
1.45Effect of dilutive securities:Stock options






58



(0.01
)






100



(0.03
)






127



(0.03
)Restricted stock






38



























Diluted EPS

$
20,395



10,455


$
1.95


$
15,639



8,137


$
1.92


$
10,065



7,092


$
1.42     Note 16.
    Employee
    Benefit Plan   F-29




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Note 17.
    Share-Based
    Compensation      Stock
    options
  10-year 10-year
      2007(A)


2006


2005Expected life in years






6.2



7.0Risk-free interest rate






5.080
%


3.875
%Dividend yield










Fair value per option





$
11.47


$
9.49Volatility






25.34
%


16.93
%      F-30




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Weighted-AverageWeighted-


RemainingAverage


Contractual


AggregateExercise


Term in


IntrinsicShares


Price


Years


ValueOutstanding options, December 31, 2005


397,994


$
21.28



8.6


$
4,111,000Granted


301,000



30.59Exercised


(21,427
)


10.61






$
470,000Expired


(3,066
)


1.96Forfeited


(14,007
)


30.30Outstanding options, December 31, 2006


660,494



25.77



8.3


$
3,284,000Granted






Exercised


(36,204
)


8.87






$
741,000Expired






Forfeited


(59,545
)


28.03Outstanding options, December 31, 2007


564,745


$
26.61



7.6


$
549,000Options exercisable, December 31, 2006


265,748


$
21.62



7.8


$
2,410,000Options exercisable, December 31, 2007


303,745


$
24.49



7.3


$
480,000     Options Outstanding


Options ExercisableWeighted-








Weighted-Average


Weighted-





Average


Weighted-Number of


Remaining


Average


Number of


Remaining


AverageShares


Contractual


Exercise


Shares


Contractual


ExerciseRange of Exercise Prices

Outstanding


Life in Years


Price


Exercisable


Life in Years


Price$ 3.92 - $ 5.48


16,566



2.5


$
5.40



16,566



2.5


$
5.40$ 7.44 - $10.33


9,079



5.8



8.52



9,079



5.8



8.52$15.00


114,100



6.7



15.00



85,100



6.7



15.00$30.29 - $30.60


270,000



8.5



30.60



98,000



8.5



30.60$31.55


155,000



7.6



31.55



95,000



7.6



31.55$ 3.92 - $31.55


564,745



7.6



26.61



303,745



7.3



24.49     Restricted
    Stock
   F-31




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      Weightedaverage fair valueShares


on award dateOutstanding at December 31, 2006





$
Awarded


163,195



25.37Shares issued by the Company upon vesting






Forfeited


(2,058
)


25.35Outstanding at December 31, 2007


161,137



25.37     Granted


Vested


Forfieted


Outstanding at 12/31/2007Weighted Average





Weighted Average





Weighted Average





Weighted Average


Fair


Weighted AverageFair Value on





Fair Value on





Fair Value on





Fair Value on


Value at


RemainingShares


Award Date


Shares


Award Date


Shares


Award Date


Shares


Award Date


12/31/2007


Contractual LifeAwarded
    8/23/2007


159,834


$
25.35






$




(2,058
)

$
25.35



157,776


$
25.35


$
2,741



2.57Awarded
    9/20/2007


3,361



26.25



















3,361



26.25



58



1.83Total


163,195



25.37











(2,058
)


25.35



161,137



25.37


$
2,799



2.56   Stock
    appreciation rights
    Note 18.
    Transactions
    with Related Parties   F-32




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    2007


2006(In thousands)Balance, beginning

$
4,119


$
4,826New loans


621



3,748Repayments


(1,825
)


(4,221
)No longer classified as related party






(234
)Balance, ending

$
2,915


$
4,119         Note 19.
    Regulatory
    Capital      Junior Subordinated Debt
   F-33




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    As of December 31, 2007To Be WellCapitalizedFor Capital


Under PromptAdequacy


Corrective ActionActual


Purposes


ProvisionsAmount


Ratio


Amount


Ratio


Amount


RatioTotal Capital (to Risk-Weighted Assets):Community Bank of Nevada

$
186,315



12.1
%

$
122,870



8
%

$
153,588



10
%Community Bank of Arizona

$
24,217



28.6
%

$
6,764



8
%

$
8,455



10
%Company

$
201,037



12.4
%

$
129,590



8
%


N/A



N/ATier I Capital (to Risk-Weighted Assets):Community Bank of Nevada

$
170,322



11.1
%

$
61,435



4
%

$
92,153



6
%Community Bank of Arizona

$
23,159



27.4
%

$
3,382



4
%

$
5,073



6
%Company

$
183,939



11.4
%

$
64,795



4
%


N/A



N/ATier I Capital (to Average Assets):Community Bank of Nevada

$
170,322



11.7
%

$
58,207



4
%

$
72,758



5
%Community Bank of Arizona

$
23,159



28.1
%

$
3,298



4
%

$
4,123



5
%Company

$
183,939



12.0
%

$
61,322



4
%


N/A



N/A   As of December 31, 2006To Be WellCapitalizedFor Capital


Under PromptAdequacy


Corrective ActionActual


Purposes


ProvisionsAmount


Ratio


Amount


Ratio


Amount


RatioTotal Capital (to Risk-Weighted Assets):Community Bank of Nevada

$
168,006



12.3
%

$
109,689



8
%

$
137,111



10
%Community Bank of Arizona

$
24,063



49.5
%

$
3,892



8
%

$
4,865



10
%Company

$
194,772



13.7
%

$
113,912



8
%


N/A



N/ATier I Capital (to Risk-Weighted Assets):Community Bank of Nevada

$
153,690



11.2
%

$
54,845



4
%

$
82,267



6
%Community Bank of Arizona

$
23,454



48.2
%

$
1,946



4
%

$
2,919



6
%Company

$
167,961



11.8
%

$
56,956



4
%


N/A



N/ATier I Capital (to Average Assets):Community Bank of Nevada

$
153,690



11.3
%

$
54,416



4
%

$
68,020



5
%Community Bank of Arizona

$
23,454



36.3
%

$
2,584



4
%

$
3,231



5
%Company

$
167,961



11.7
%

$
57,277



4
%


N/A



N/A    F-34




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Note 20.
    Condensed
    Financial Information of Parent Company    As of December 31,2007


2006(In thousands, except share data)ASSETSCash and due from banks

$
962


$
447Securities available for sale, at fair value


708



769Investment in Community Bank of Nevada stock


281,233



267,867Investment in Community Bank of Arizona stock


33,427



33,520Other assets


5,463



4,451Total assets

$
321,793


$
307,054LIABILITIES AND STOCKHOLDERS EQUITYBorrowings

$
14,271


$
Accrued interest payable and other liabilities


237



553Junior subordinated debt


72,166



87,63086,674



88,183Stockholders equity


235,119



218,871Total liabilities and stockholders equity

$
321,793


$
307,054   Years Ended December 31,2007


2006


2005(In thousands)Interest and dividend income

$
14,275


$
6,949


$
1,263Interest expense


6,102



3,696



1,393Net interest income (loss)


8,173



3,253



(130
)Provision for loan losses






97



129Net interest income (loss) after provision for loan losses


8,173



3,156



(259
)Total other income


75







Total other expenses


2,237



1,766



1,196Income (loss) before income tax provision


6,011



1,390



(1,455
)Income tax (benefit)


(2,842
)


(1,147
)


(393
)8,853



2,537



(1,062
)Equity in undistributed net income of subsidiaries


11,542



13,102



11,127Net income

$
20,395


$
15,639


$
10,065   F-35




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Year Ended December 31,2007


2006


2005(In thousands)Cash flows from operating activities:Net income

$
20,395


$
15,639


$
10,065Adjustments to reconcile net income to net cash provided by
    operating activities:Equity in undistributed net (income) of subsidiaries


(11,542
)


(13,102
)


(11,127
)Depreciation of premises and equipment


2







Provision for loan losses






97



129Tax benefit related to exercise of stock options










5Net amortization (accretion) of investment premium and discount






4



8Stock-based compensation expense


140



386



(Increase) decrease in other assets


(996
)


129



289Increase in accrued interest payable and other liabilities


(314
)


293



(1,360
)Net cash provided by (used in) operating activities


7,685



3,446



(1,991
)Cash flows from investing activities:Proceeds from maturities of and principal paydowns on securities
    held to maturity


59



86



176Investment in stock of subsidiaries






(36,000
)


(1,500
)Cash paid for acquisitions, net






(57,548
)


(20,480
)Purchase of premises and equipment


(16
)






Net (increase) decrease in loans






21,826



(14,838
)Net cash provided by (used in) investing activities


43



(71,636
)


(36,642
)Cash flows from financing activities:Proceeds from issuance of long-term debt


15,464







Repayment of long-term debt


(1,193
)






Proceeds from issuance of long-term subordinated debentures






50,000



20,000Redemption of long-term subordinated debentures


(15,464
)






Purchase of treasury stock


(6,399
)






Excess tax benefit related to exercise of stock options


58



128



Proceeds from exercise of stock options


321



227



105Cost of issuing stock in acquisitions






(168
)


(160
)Net cash (used in) provided by financing activities


(7,213
)


50,187



19,945Net increase (decrease) in cash and cash equivalents


515



(18,003
)


(18,688
)Cash and cash equivalents, beginning of the year


447



18,450



37,138Cash and cash equivalents, end of the period

$
962


$
447


$
18,450   Note 21.
    Segment
    Information   F-36




---



##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
          2007Community


CommunityBank of


Bank ofNevada


Arizona


Other(3)


Total(In thousands)Interest and dividend income

$
121,899


$
5,990


$
136


$
128,025Interest expense


48,878



2,242



6,027



57,147Net interest income before provision for loan losses


73,021



3,748



(5,891
)


70,878Provision for loan losses


2,647



707



1



3,355Net interest income after provision for loan losses


70,374



3,041



(5,892
)


67,523Non-interest income


3,256



291



75



3,622Non-interest expenses


33,952



3,537



2,238



39,727Segment pretax income (loss)

$
39,678


$
(205
)

$
(8,055
)

$
31,418Segment assets(1)

$
1,601,732


$
97,236


$
(5,447
)

$
1,693,521   2006Community


CommunityBank of


Bank ofNevada


Arizona


Other(3)


Total(In thousands)Interest and dividend income

$
83,114


$
1,213


$
2,162


$
86,489Interest expense


29,670



399



3,696



33,765Net interest income before provision for loan losses


53,444



814



(1,534
)


52,724Provision for loan losses


3,350



62



97



3,509Net interest income after provision for loan losses


50,094



752



(1,631
)


49,215Non-interest income


2,548



77







2,625Non-interest expenses


25,299



555



1,766



27,620Segment pretax income (loss)

$
27,343


$
274


$
(3,397
)

$
24,220Segment assets(2)

$
1,489,482


$
76,331


$
4,566


$
1,570,379   F-37




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##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  2005Community


CommunityBank of


Bank ofNevada


Arizona


Other(3)


Total(In thousands)Interest and dividend income

$
45,074


$



$
1,263


$
46,337Interest expense


11,118







1,393



12,511Net interest income before provision for loan losses


33,956







(130
)


33,826Provision for loan losses


956







129



1,085Net interest income after provision for loan losses


33,000







(259
)


32,741Non-interest income


2,275











2,275Non-interest expenses


19,316







1,196



20,512Segment pretax income (loss)

$
15,959


$



$
(1,455
)

$
14,504Segment assets

$
868,528


$



$
24,180


$
892,708     (1)
    
    Goodwill included in Community Bank of Nevadas and
    Community Bank of Arizonas segment assets amounted to
    $103.7 million and $9.9 million, respectively.(2)
    
    Goodwill included in Community Bank of Nevadas and
    Community Bank of Arizonas segment assets amounted to
    $106.4 million and $9.5 million, respectively.(3)
    
    Includes intersegment eliminations and reclassifications.  Note 22.
    Quarterly
    Data (Unaudited)    2007


2006Fourth


Third


Second


First


Fourth


Third


Second


FirstQuarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter(In thousands, except per share data)Interest and dividend income

$
31,462


$
33,259


$
32,416


$
30,888


$
29,905


$
20,678


$
19,225


$
16,681Interest expense


14,119



15,031



14,618



13,379



13,092



8,388



6,866



5,419Net interest income before provision for loan losses


17,343



18,228



17,798



17,509



16,813



12,290



12,359



11,262Provision for loan losses


1,854



533



486



482



385



1,517



625



982Net interest income after provision for loan losses


15,489



17,695



17,312



17,027



16,428



10,773



11,734



10,280Non-interest income


929



822



1,004



867



823



667



592



543Non-interest expense


10,603



10,043



9,623



9,458



8,941



6,381



6,623



5,675Income before income tax provision


5,815



8,474



8,693



8,436



8,310



5,059



5,703



5,148Income tax provision


2,043



2,943



3,050



2,987



2,916



2,002



1,940



1,723Net income

$
3,772


$
5,531


$
5,643


$
5,449


$
5,394


$
3,057


$
3,763


$
3,425Basic earnings per share

$
0.37


$
0.53


$
0.54


$
0.52


$
0.54


$
0.41


$
0.51


$
0.46Diluted earnings per share

$
0.36


$
0.53


$
0.54


$
0.52


$
0.54


$
0.41


$
0.50


$
0.46  F-38




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##### Table of Contents



COMMUNITY
    BANCORP AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Note 23.
    Subsequent
    Event   F-39




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM           Internal Control 
    Integrated Framework
      F-40




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##### Table of Contents



Report of
    Independent Registered Public Accounting Firm  
        Share-Based Payments.
  
  
  F-41




---



##### Table of Contents



EXHIBIT INDEX
  ExhibitNumber

Description21.1

List of subsidiaries23.1

Consent of Grant Thornton LLP23.2

Consent of McGladrey & Pullen, LLP31.1

Rule 13a-14(a) Certification by Chief Executive Officer31.2

Rule 13a-14(a) Certification by Chief Financial Officer32.1

Section 1350 Certifications