Acquisition of

Front Range Capital Corporation

Holding Company for

Heritage Bank

October 5, 2006

Exhibit 99.2

Page 2

Forward Looking Statements

Certain

statements

in

our

presentation

are

forward-looking

statements,

within

the

meaning

of

Section

27A

of

the

Securities

Act

of

1933

and

Section

21E

of

the

Securities

Exchange

Act

of

1934

(the

“Exchange

Act”).

The

discussions

regarding

our

growth

strategy,

projections,

annualized

data,

competition,

loan

and

deposit

growth,

timing

of

new

branch

openings,

expansion

opportunities,

and

response

to

consolidation

in

the

banking

industry

include

forward-looking

statements.

Other

forward-looking

statements

can

be

identified

by

the

use

of

forward-looking

words

such

as

“believe,”

“expect,”

“may,”

“will,”

“should,”

“seek,”

“approximately,”

“intend,”

“plan,”

“estimate,”

or

“anticipate,”

or

the

negative

of

those

words

or

other

comparable

terminology.

Forward-looking

statements

involve

inherent

risks

and

uncertainties.

A

number

of

important

factors

could

cause

actual

results

to

differ

materially

from

those

in

the

forward-looking

statement.

Some

factors

include

changes

in

interest

rates,

local

business

conditions,

government

regulations,

loss

of

key

personnel

or

inability

to

hire

suitable

personnel,

faster

or

slower

than

anticipated

growth,

economic

conditions,

our

competitors’

responses

to

our

marketing

strategy

or

new

competitive

conditions,

and

competition

in

the

geographic

and

business

areas

in

which

we

conduct

our

operations.

Page 3

Table of Contents

1.

Transaction Summary

2.

Transaction Rationale

3.

Overview of Heritage Bank

4.

Pro Forma Financial Impact

5.

Conclusion

Page 4

Transaction Summary

Page 5

Transaction Summary

Transaction:

Acquisition of Front Range Capital Corporation, holding

company for Heritage Bank

Transaction Value:

$72 million

Financing Plan:

Issuance of a combination of common equity and Trust

Preferred Securities

Cost Savings:

29% cost savings assumed

(1)

Required Approvals:

Federal Reserve, Colorado state regulatory agencies

Expected Closing:

First Quarter 2007

(1) Net of additional expenses

Page 6

Transaction Summary

Transaction Value:

$72 million

Price / 2007 FRCC’s

Contributed Earnings

(1)

:

11.6x

Price / Book:

3.78x

Price / Tangible Book:

3.80x

Core Deposit Premium:

18.8%

Price / Assets:

16.0%

(1) Estimated earnings as per FSNM management; Includes cost savings and certain other adjustments

Page 7

Transaction Rationale

Page 8

Transaction Rationale

Accelerates FSNM’s franchise expansion in Colorado.

•

Heritage Bank’s footprint represents what FSNM had planned to establish organically in

Colorado over the next few years

•

Potential for increased FSNM earnings as budgeted expansion expenses are avoided

•

Allows management to also focus on new markets, namely Arizona

•

Eliminates need for future M&A activities in Colorado

Provides a platform for continued growth.

•

Enables FSNM to continue its EPS growth trajectory

•

Breakeven/accretive to 2007 GAAP and cash EPS and accretive to 2008 GAAP and cash EPS

•

Potential synergies beyond traditional cost savings

–

Opportunity to provide Heritage Bank’s customers with FSNM’s broader array of commercial products

–

Opportunity to improve Heritage Bank’s earnings by liquidating OREO property and restructuring the

balance sheet

•

EPS accretion accelerating as cost savings and potential synergies are fully implemented and

the franchise realizes its true earnings potential

Page 9

Transaction Rationale

Perfect match with FSNM’s current franchise in Colorado.

•

Complementary community banking business models with a focus on small businesses

•

Strong core deposit base and attractive commercial loan portfolio

•

Locations in the attractive Front Range region of Colorado and in Denver

•

Low overlap with current branch footprint

Low execution risk.

•

In market transaction with similar operating philosophies

Combined franchise will have:

•

$3.3 billion in assets

(1)

•

$597.7

million

in

deposits

in

Colorado

(2)

•

20 branches in Colorado

(1) Estimated at March 31, 2007

(2) Sum of FSNM’s deposits in Colorado and Heritage Bank’s deposits as of June 30, 2006

Page 10

EL PASO

TELLER

SUMMIT

PARK

DOUGLAS

ELBERT

JEFFERSON

CHAFFEE

DENVER

ARAPAHOE

BOULDER

MORGAN

EAGLE

LAKE

ADAMS

GILPIN

CLEAR CREEK

GRAND

JACKSON

LARIMER

WELD

Erie

Lafayette

Louisville

Firestone

Denver

Broomfield

Boulder

Longmont

Longmont

Transaction Rationale –

Geographic Footprint

Branch deposit data as of March 31, 2006; source: Front Range Capital Corporation

Deposits

Branches

($000s)

5720 W 120th Ave

$54,724

Broomfield, CO 80020

811 S Public Rd

$57,323

Lafayette, CO 80026

1543 Wazee St

$36,696

Denver, CO 80202

1020 Century Dr

$40,252

Louisville, CO 80027

2775 Pearl St

$36,451

Boulder, CO 80302

2100 N.Main St

$27,429

Longmont, CO 80501

Leon Wurl Parkway

$24,295

Erie, CO 80516

1900 9th St

$24,744

Boulder, CO 80302

2695 N Park Dr Ste 101

$17,664

Lafayette, CO 80026

801 Main St Ste 130

$17,151

Louisville, CO 80027

25 E.Ken Pratt Blvd

$13,311

Longmont, CO 80501

3850 York St

$5,562

Denver, CO 80205

8080 Weld County Road 12

$6,007

Firestone, CO 80504

FSNM

FRCC

Page 11

Transaction Rationale –

Boulder County Deposit Market Share

(1) Source: SNL Financial; data as of June 30, 2005 and pro forma for pending and recently completed acquisitions

Dollars in thousands

COUNTY: Boulder, CO

Total

Total

Deposits

Market

Branch

in Market

Share

Rank

Institution

Count

($000)

(%)

1

Wells Fargo & Co. (CA)

10

810,015

15.91

2

JPMorgan Chase & Co. (NY)

10

672,973

13.22

3

FirstBank Holding Company (CO)

10

608,837

11.96

4

Wachovia Corp. (NC)

3

530,766

10.43

5

First National of Nebraska (NE)

4

408,972

8.03

6

Big Sandy Holding Co (CO)

4

320,207

6.29

7

Centennial Bank Holdings Inc. (CO)

6

275,826

5.42

8

U.S. Bancorp (MN)

7

236,888

4.65

9

BNP Paribas Group

10

232,506

4.57

10

Pro Forma Company

9

229,678

4.51

10

Front Range Capital Corp. (CO)

8

213,086

4.19

23

First State Bancorp. (NM)

1

16,592

0.33

Top 10

72

4,310,076

84.67

Totals (1-28)

104

5,090,965

100.00

Page 12

Transaction Rationale –

Deposit Market Share Analysis

Source: SNL Financial

Deposit market share as of June 30, 2005 and pro forma for pending and recently completed acquisitions

Special purpose depository institutions are excluded

First State Bancorporation

Front Range Capital Corporation

Pro Forma First State Bancorporation

Total

Total

Total

Total

Total

Total

Total

Deposits

Market

Market

Deposits

Market

Market

Deposits

Market

Market

Deposits

Branch

in Market

Share

Share

Branch

in Market

Share

Share

Branch

in Market

Share

Share

in Market

Count

($M)

(%)

Rank

Count

($M)

(%)

Rank

Count

($M)

(%)

Rank

($M)

Colorado

7

169

0.25

43

13

343

0.50

26

20

512

0.74

23

68,723

Colorado Counties:

Boulder

1

17

0.33

23

8

213

4.19

10

9

230

4.51

10

5,091

Broomfield

-

-

-

-

1

64

12.87

3

1

64

12.87

3

497

Denver

1

50

0.28

28

2

44

0.24

30

3

94

0.52

21

18,205

Weld

-

-

-

-

2

22

0.83

19

2

22

0.83

19

2,604

Other Markets

New Mexico

39

1,604

8.16

3

-

-

-

-

39

1,604

8.16

3

19,667

Arizona

1

95

0.13

40

-

-

-

-

1

95

0.13

40

72,806

Utah

2

15

0.05

46

-

-

-

-

2

15

0.05

46

31,462

Page 13

Overview of Heritage Bank

Page 14

Overview of Front Range Capital Corporation and Heritage Bank

Front Range Capital Corporation is a bank holding company headquartered in

Broomfield, Colorado with approximately $450 million in assets.

Heritage Bank is Front Range Capital Corporation’s commercial banking subsidiary.

•

13 branches in highly attractive markets:

–

Boulder County:

8 branches

–

Broomfield County:

1 branch

–

Denver County:

2 branches

–

Weld County:

2 branches

High-touch community banking strategy with a focus on small businesses.

Page 15

Overview of Heritage Bank: Financial Highlights

(1) NPAs

in 2002 –

2006 consist primarily of a 6.7 acre property called Heritage Place, which represents approximately $7.7 million of OREO at June 30, 2006

Source: SNL Financial

Note: financial data for Heritage Bank only; data does not include Front Range Capital Corporation holding company adjustments, which include adjustments for trust preferred

securities, preferred equity and other adjustments.

Dollars in thousands

At or for the

Six Months

At or for the Year Ended December 31,

Ended

2002

2003

2004

2005

06/30/2006

Balance Sheet Highlights

Total Assets

386,362

397,302

419,240

456,375

451,258

Total Loans & Leases

268,548

285,632

290,039

325,232

328,125

Total Deposits

323,161

303,556

344,255

352,951

377,292

Performance Measures

Net Income

2,201

1,539

1,867

1,802

1,102

ROAA (%)

0.65

0.41

0.47

0.41

0.49

ROAE (%)

7.89

4.99

5.83

5.50

6.40

Net Interest Margin (%)

5.26

5.10

4.94

4.56

4.37

Efficiency Ratio (%)

76.7

78.9

78.0

84.9

81.6

Asset Quality (%)

(1)

NPAs/ (Loans+OREO)

4.27

4.70

5.43

4.11

5.12

Reserves/ NPAs

20.28

20.70

21.80

22.58

17.07

Net LCOs/ Avg Loans

0.38

0.64

0.48

0.46

0.43

Page 16

Overview of Heritage Bank: Asset Quality

Source: SNL Financial and Front Range Capital Corporation

(1) Pro forma adjustments assume an increase in Heritage Bank’s reserves of $1.3 million and the sale of Heritage Place representing a reduction in OREO of $7.7 million

Heritage Bank currently owns a property called Heritage Place which the Company originally

intended to sell to real estate developers.

•

6.7 acres of the property is categorized as other real estate owned (“OREO”) and has a book value of

approximately $7.7 million.

•

1.5 acres of the property is categorized as premises and equipment and has a book value of approximately

$1.8 million.

•

It is the intention of Heritage Bank to sell Heritage Place before the closing of the transaction with

FSNM.

•

Pro forma asset quality ratios for FSNM:

FSNM

Heritage Bank

June 30, 2006

June 30, 2006

Pro Forma

(1)

Reserves / Loans HFI

1.14%

0.90%

1.17%

NPAs / Loans & OREO

0.65%

5.12%

0.98%

Page 17

Overview of Heritage Bank: Loan and Deposit Portfolios

Consumer,

Leases &

Other

4.9%

Commercial

8.5%

Construction

29.4%

Residential

R.E.

13.6%

Commercial

R.E.

43.5%

MRQ Yield on Loans: 8.65%

Loan Portfolio

Loan Portfolio ($000)

Residential R.E.

44,743

$           

13.6%

Commercial R.E.

142,839

43.5%

Construction

96,497

29.4%

Commercial

28,008

8.5%

Consumer, Leases & Other

16,038

4.9%

Gross Loans & Leases

328,125

$         

100.0%

Jumbo CDs

21.8%

Non-interest-

bearing

15.2%

Interest-

bearing

demand

11.7%

MMDA &

Savings

32.5%

Retail CDs

18.8%

Deposit Portfolio

MRQ Cost of Deposits: 2.99%

Deposit Portfolio ($000)

Non-interest-bearing

57,266

$          

15.2%

Interest-bearing demand

44,154

11.7%

MMDA & Savings

122,721

32.5%

Retail CDs

71,049

18.8%

Jumbo CDs

82,102

21.8%

Total Deposits

377,292

$        

100.0%

Source: 6/30/2006 regulatory filings and SNL Financial

Page 18

Pro Forma Financial Impact

Page 19

Pro Forma Financial Impact: GAAP and Cash EPS Impact

Dollars in millions

(1) Based on current 2007 consensus EPS estimate and 15.0% growth thereafter

(2) Estimated earnings as per FSNM management; Includes cost savings and certain other adjustments

(3) Excludes approximately ($0.5) million (after-tax) in nonrecurring integration expenses in 2007

2007

2008

FSNM EPS

(1)

1.72

$       

1.98

$       

FSNM Earnings

30.8

$       

35.4

$       

FRCC Earnings

(2)

6.2

7.3

Combined Earnings

37.0

42.7

Financing Adjustments

(0.4)

(0.4)

Core Deposit Amortization

(0.8)

(0.8)

Pro Forma Earnings

(3)

35.9

$       

41.6

$       

GAAP EPS Accretion / (Dilution)

0.2%

0.9%

Cash EPS Accretion / (Dilution)

1.9%

2.4%

Page 20

Pro Forma Financial Impact: Balance Sheet Summary

Dollars in millions

(1) Represented by average balance sheet for the month ended June 30, 2006 for Front Range Capital Corporation

(2) Includes all transaction adjustments; assumes 12.0% and 10.0% overall balance sheet growth for FSNM and FRCC, respectively

Estimated

6/30/2006

6/30/2006

3/31/2007

FSNM

FRCC

(1)

Pro Forma

(2)

Assets

2,606.2

$       

448.9

$          

3,345.1

$       

Loans

1,895.7

325.4

2,416.1

Intangible Assets

76.7

0.1

139.8

Deposits

2,079.0

363.3

2,656.7

Trust Preferred Securities

55.5

9.5

75.0

Page 21

Pro Forma Financial Impact: Cost Savings and Other Adjustments

Dollars in millions

2007 Estimated Noninterest Expense Base

17.6

$          

Reduction in Noninterest Expense Base

(6.5)

$           

Increase in Noninterest Expense Base

Salaries & Benefits

0.5

Occupancy

0.1

Data Processing

0.5

Other Expenses

0.2

Total Increase in Noninterest Expense Base

1.4

Total Adjustments (Pre-tax)

(5.2)

$           

Adjustments as % of Noninterest Expense Base

29%

Page 22

Pro Forma Financial Impact: Loan Portfolio

Residential

R.E.

12.2%

Commercial

R.E.

39.9%

Construction

30.3%

Commercial

13.3%

Consumer &

Other

4.3%

Consumer,

Leases &

Other

4.9%

Commercial

8.5%

Construction

29.4%

Residential

R.E.

13.6%

Commercial

R.E.

43.5%

Consumer,

Leases &

Other

4.4%

Commercial

12.5%

Construction

30.2%

Residential

R.E.

12.4%

Commercial

R.E.

40.4%

FSNM

Heritage Bank

Pro Forma

Source:

FSNM data per 6/30/2006 10-Q

Heritage data per 6/30/2006 regulatory filings

Loan Portfolio ($000)

Residential R.E.

234,120

$         

12.2%

Commercial R.E.

765,085

39.9%

Construction

583,073

30.3%

Commercial

253,942

13.3%

Consumer & Other

82,467

4.3%

Gross Loans

1,918,687

$      

100.0%

Loan Portfolio ($000)

Residential R.E.

44,743

$           

13.6%

Commercial R.E.

142,839

43.5%

Construction

96,497

29.4%

Commercial

28,008

8.5%

Consumer, Leases & Other

16,038

4.9%

Gross Loans & Leases

328,125

$         

100.0%

Pro Forma - Loan Portfolio ($000)

Residential R.E.

278,863

$         

12.4%

Commercial R.E.

907,924

40.4%

Construction

679,570

30.2%

Commercial

281,950

12.5%

Consumer, Leases & Other

98,505

4.4%

Gross Loans & Leases

2,246,812

$      

100.0%

Page 23

Pro Forma Financial Impact: Deposit Portfolio

FSNM

Heritage Bank

Pro Forma

Retail CDs

19.2%

MMDA &

Savings

17.4%

Interest-

bearing

demand

16.0%

Non-interest-

bearing

21.7%

Jumbo CDs

25.7%

Jumbo CDs

21.8%

Non-interest-

bearing

15.2%

Interest-

bearing

demand

11.7%

MMDA &

Savings

32.5%

Retail CDs

18.8%

Jumbo CDs

25.1%

Non-interest-

bearing

20.7%

Interest-

bearing

demand

15.3%

MMDA &

Savings

19.7%

Retail CDs

19.1%

Source:

FSNM data per 6/30/2006 10-Q

Heritage data per 6/30/2006 regulatory filings

Deposit Portfolio ($000)

Non-interest-bearing

451,353

$        

21.7%

Interest-bearing demand

332,385

16.0%

MMDA & Savings

360,971

17.4%

Retail CDs

398,849

19.2%

Jumbo CDs

535,440

25.7%

Total Deposits

2,078,998

$     

100.0%

Deposit Portfolio ($000)

Non-interest-bearing

57,266

$          

15.2%

Interest-bearing demand

44,154

11.7%

MMDA & Savings

122,721

32.5%

Retail CDs

71,049

18.8%

Jumbo CDs

82,102

21.8%

Total Deposits

377,292

$        

100.0%

Pro Forma - Deposit Portfolio ($000)

Non-interest-bearing

508,619

$        

20.7%

Interest-bearing demand

376,539

15.3%

MMDA & Savings

483,692

19.7%

Retail CDs

469,898

19.1%

Jumbo CDs

617,542

25.1%

Total Deposits

2,456,290

$     

100.0%

Page 24

Conclusion

Page 25

Conclusion

Over the last ten years:

•

FSNM’s

stock

has

had

an

annualized

total

return

of

21.4%

(1)

•

FSNM’s

core

EPS

has

increased

by

18.5%

on

an

annualized

basis

(2)

Since the closing of the acquisition of First Community Industrial Bank in 2002:

•

FSNM’s

stock

has

had

an

annualized

total

return

of

23.1%

(1)

•

FSNM’s

core

EPS

has

increased

by

13.8%

on

an

annualized

basis

(3)

This transaction:

•

Accelerates FSNM’s franchise expansion in Colorado

•

Provides a platform for the continued growth that FSNM shareholders have enjoyed

•

Creates a $3.3 billion franchise

–

A dominant community bank in New Mexico

–

Significant presence in the Front Range region and northern Denver (20 branches in Colorado)

–

Small but growing presence in Phoenix, Arizona and Salt Lake City, Utah

(1) Based on closing stock price of FSNM on October 4, 2006

(2)

Based

on

1996

core

EPS

and

annualized

core

EPS

for

the

three

months

ended

June

30,

2006

(3) Based on annualized core EPS for the three months ended March 31, 2003 and annualized core EPS for the three months ended June 30, 2006

Source: SNL Financial and FactSet Research Systems

Page 26

COLORADO

NEVADA

NEW MEXICO

ARIZONA

UTAH

WYOMING

Denver

Colorado Springs

Albuquerque

PHOENIX

Glendale

SALT LAKE CITY

Tucson

Tempe

El Paso

SANTA FE

First State Bancorporation: Pro Forma Branch Footprint

FSNM

FRCC