GREENWOOD, S.C., April 18, 2007 (PRIME NEWSWIRE) -- Community Capital Corporation (Nasdaq:CPBK) reports operating results for the three months ending March 31, 2007. Net income for the three months ended March 31, 2007 increased 10.66% to $1,630,000, or $0.43 per diluted share from $1,473,000, or $0.39 per diluted share for the same period in 2006.
Return on average assets for the first quarter was 0.91% for 2007 compared to 0.97% for 2006. Return on average equity was 11.01% compared to 10.75% in 2006. Total assets increased 17.38% to $740,726,000 at March 31, 2007 from $631,050,000 as of March 31, 2006. Total loans increased $101,896,000 or 20.67% to $594,786,000 at March 31, 2007, compared to $492,890,000 at March 31, 2006. Total deposits increased $31,266,000 or 6.79% to $491,959,000 at March 31, 2007 from $460,693,000 at March 31, 2006.
The company also declared a quarterly cash dividend of $0.15 per share, which is payable by June 1, 2007 to shareholders of record as of May 18, 2007. Community Capital Corporation has a dividend reinvestment and additional stock purchase plan. Information on the plan may be obtained from Registrar and Transfer Company, the plan administrator, at 800-368-5948.
Community Capital Corporation is the parent company of CapitalBank, which operates 17 community oriented branches throughout upstate South Carolina that offer a full array of banking services, including a diverse wealth management group. Additional information on CapitalBank's locations and the products and services offered are available at www.capitalbanksc.com.
Certain matters set forth in this news release may contain forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. However, such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. For a discussion of certain factors that may cause such forward-looking statements to differ materially from the Company's actual results, see the Company's Annual Report on Form 10-K for the year ended December 31, 2006.
Financial Highlights Three Months Three Months Three Months
(Dollars in thousands, Ended Ended Ended
except per share data) March 31 December 31 March 31
2007 2006 2006
Earnings Summary (Unaudited) (Unaudited) (Unaudited)
Interest income $ 11,475 $ 11,248 $ 8,888
Interest expense 5,927 5,796 3,857
---------- ---------- ----------
Net interest income 5,548 5,452 5,031
Provision for loan losses 200 340 --
Non-interest income 1,608 1,629 1,360
Non-interest expense 4,652 4,620 4,408
---------- ---------- ----------
Income before taxes 2,304 2,121 1,983
Income tax expense 674 577 510
---------- ---------- ----------
Net income $ 1,630 $ 1,544 $ 1,473
---------- ---------- ----------
Per Shares Ratios:
Basic earnings per share $ 0.43 $ 0.41 $ 0.40
Diluted earnings per share $ 0.43 $ 0.40 $ 0.39
Dividends declared per share $ 0.15 $ 0.15 $ 0.15
Book value per share $ 15.78 $ 15.55 $ 14.75
Common Share Data:
Outstanding at period end 3,839,305 3,788,505 3,758,625
Weighted average outstanding 3,776,675 3,757,630 3,709,236
Diluted weighted average
outstanding 3,833,377 3,813,702 3,802,429
Balance Sheet Highlights
Average Balances:
Total assets $ 724,012 $ 704,790 $ 614,240
Earning assets 660,546 642,929 554,340
Loans 582,748 564,201 477,081
Deposits 488,672 486,291 446,100
Interest bearing deposits 425,242 422,504 385,372
Noninterest bearing deposits 63,430 63,787 60,728
Other borrowings 158,927 143,530 107,984
Junior subordinated
debentures 10,310 10,310 --
Shareholders' equity 60,054 58,797 55,575
Performance Ratios:
Return on average assets 0.91% 0.87% 0.97%
Return on average
shareholders' equity 11.01% 10.41% 10.75%
Net interest margin (fully
tax equivalent at 38%) 3.49% 3.44% 3.78%
Efficiency ratio 63.58% 63.17% 67.58%
Asset Quality:
Nonperforming loans $ 1,840 $ 2,205 $ 3,164
Other real estate 107 134 5
Total nonperforming assets 1,947 2,339 3,169
Net charge-offs 38 289 262
Net charge-offs to average
loans 0.01% 0.05% 0.05%
Allowance for loan losses to
nonperforming loans 345.76% 281.18% 191.59%
Nonperforming loans to total
loans 0.31% 0.38% 0.64%
Nonperforming assets to total
assets 0.26% 0.33% 0.50%
Allowance for loan losses to
period end loans 1.07% 1.08% 1.23%
Other Selected Ratios:
Average equity to average
assets 8.29% 8.34% 9.05%
Average loans to average
deposits 119.25% 116.02% 106.94%
Average loans to average
earning assets 88.22% 87.75% 86.06%
Balance Sheet Data
(Dollars in thousands,
except per share data) Period Ended Period Ended Period Ended
March 31 December 31 March 31
2007 2006 2006
(Unaudited) (Unaudited)
Assets:
Cash and cash equivalents:
Cash and due from banks $ 23,954 $ 22,167 $ 20,661
Interest bearing deposit
accounts 282 307 170
--------- --------- ---------
Total cash and cash
equivalents 24,236 22,474 20,831
Investment securities:
Securities held-for-sale 68,145 65,496 70,812
Securities held-to-maturity 325 380 380
Nonmarketable equity
securities 9,056 8,073 5,824
--------- --------- ---------
Total investment securities 77,526 73,949 77,016
Loans held for sale 1,961 554 922
Loans receivable 594,786 573,639 492,890
Allowance for loan losses (6,362) (6,200) (6,062)
Premises and equipment, net 15,374 15,429 14,369
Intangible assets 10,307 10,427 10,794
Other assets 22,898 22,972 20,290
--------- --------- ---------
Total assets $ 740,726 $ 713,244 $ 631,050
--------- --------- ---------
Liabilities and shareholders'
equity:
Deposits:
Noninterest bearing $ 68,076 $ 63,733 $ 63,508
Interest bearing 423,883 423,223 397,185
--------- --------- ---------
Total deposits 491,959 486,956 460,693
Federal funds purchased 25,536 26,953 23,730
Securities sold under
agreements to repurchase 20,645 18,329 17,857
FHLB advances 125,600 105,625 67,200
Other short-term borrowings -- -- 2,000
Junior subordinated debentures 10,310 10,310 --
Other liabilities 6,106 6,145 4,111
--------- --------- ---------
Total liabilities $ 680,156 $ 654,318 $ 575,591
--------- --------- ---------
Shareholders' equity:
Common stock: $1 par value;
10 million shares authorized 4,869 4,818 4,788
Nonvested restricted stock (862) (558) (893)
Capital surplus 48,432 47,671 47,457
Accumulated other
comprehensive income (190) (269) (573)
Retained earnings 25,443 24,386 21,802
Treasury stock, at cost (17,122) (17,122) (17,122)
--------- --------- ---------
Total shareholders' equity 60,570 58,926 55,459
--------- --------- ---------
Total liabilities and
shareholders' equity $ 740,726 $ 713,244 $ 631,050
--------- --------- ---------
Income Statement Data
(Dollars in thousands, Three Months Three Months Three Months
except per share data) Ended Ended Ended
March 31 December 31 March 31
2007 2006 2006
(Unaudited) (Unaudited) (Unaudited)
Interest income:
Interest and fees on loans $ 10,592 $ 10,367 $ 8,052
Interest on investment
securities 872 879 835
Interest on federal funds
sold and interest-bearing
deposits 11 2 1
-------- -------- --------
Total interest income 11,475 11,248 8,888
Interest expense:
Interest on deposits 3,846 3,823 2,729
Interest on borrowings 2,081 1,973 1,128
-------- -------- --------
Total interest expense 5,927 5,796 3,857
Net interest income 5,548 5,452 5,031
Provision for loan losses 200 340 --
Net interest income after
provision 5,348 5,112 5,031
Non-interest income:
Service charges on deposit
accounts 583 666 622
Gain on sale of loans held
for sale 258 234 165
Commissions from sales of
mutual funds 57 31 21
Income from fiduciary
activities 381 330 273
Gain on sale of securities
held-for-sale -- -- --
Gain on sale of premises and
equipment 15 -- 2
Other operating income 314 368 277
-------- -------- --------
Total non-interest income 1,608 1,629 1,360
Non-interest expense:
Salaries and employee
benefits 2,744 2,756 2,571
Net occupancy expense 282 278 280
Amortization of intangible
assets 119 123 125
Furniture and equipment
expense 209 205 197
Loss on sale of securities
held-for-sale 53 67 --
Other operating expenses 1,245 1,191 1,235
-------- -------- --------
Total non-interest expense 4,652 4,620 4,408
Income before taxes 2,304 2,121 1,983
Income tax expense 674 577 510
-------- -------- --------
Net income $ 1,630 $ 1,544 $ 1,473
-------- -------- --------
Basic earnings per share $ 0.43 $ 0.41 $ 0.40
Diluted earnings per share $ 0.43 $ 0.40 $ 0.39
March 31, 2007 December 31, 2006 March 31, 2006
Balance Percent Balance Percent Balance Percent
Loans:
Commercial
and
agricultural $ 44,750 7.52% $ 44,910 7.83% $ 40,939 8.30%
Real Estate
construction 168,800 28.38% 142,694 24.88% 102,013 20.70%
Real Estate -
mortgage and
commercial 300,549 50.53% 321,440 56.03% 276,878 56.17%
Home equity 40,952 6.89% 40,805 7.11% 42,081 8.54%
Consumer -
Installment 38,180 6.42% 22,092 3.85% 29,408 5.97%
Other 1,555 0.26% 1,698 0.30% 1,571 0.32%
-------- ------- -------- ------- -------- -------
Total $594,786 100.00% $573,639 100.00% $492,890 100.00%
-------- ------- -------- ------- -------- -------
March 31, 2007 December 31, 2006 March 31, 2006
Balance Percent Balance Percent Balance Percent
Deposits:
Noninterest
bearing
demand $ 68,076 13.84% $ 63,733 13.09% $ 63,508 13.79%
Interest
bearing
demand 68,897 14.00% 64,743 13.30% 69,434 15.07%
Money market
and savings 175,509 35.68% 168,592 34.62% 142,326 30.89%
Certificates
of deposit 179,477 36.48% 189,888 38.99% 185,425 40.25%
-------- ------- -------- ------- -------- -------
Total $491,959 100.00% $486,956 100.00% $460,693 100.00%
-------- ------- -------- ------- -------- -------
Yield/Rate Analysis YTD Three Months Ended
March 31, 2007
-----------------------------------
Average Yield/
(Dollars in thousands) Balance Interest Rate
------------------------------------
ASSETS
Loans(a)(c) $ 582,748 $ 10,604 7.38%
Securities, taxable(b) 41,931 449 4.34%
Securities, nontaxable(b)(c) 26,555 418 6.38%
Nonmarketable Equity Securities 8,467 123 5.89%
Fed funds sold and other (incl
FHLB) 845 11 5.28%
--------- ---------
Total earning assets 660,546 $ 11,605 7.13%
Cash and due from banks 22,116
Allowance for loan losses (6,195)
Premises & equipment 15,413
Other assets 32,132
---------
Total assets $ 724,012
=========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Transaction accounts $ 195,678 $ 1,369 2.84%
Regular savings accounts 39,204 245 2.53%
Certificates of deposit 190,360 2,231 4.75%
Other short term borrowings 44,652 576 5.23%
FHLB Advances 114,275 1,325 4.70%
Junior subordinate debentures 10,310 181 7.12%
--------- ---------
Total interest-bearing
liabilities 594,479 $ 5,927 4.04%
Non-interest deposits 63,430
Other liabilities 6,049
Stockholders' equity 60,054
---------
Total liabilities & equity $ 724,012
=========
Net interest income/
interest rate spread $ 5,678 3.08%
====================
Net yield on earning assets 3.49%
=======
Yield/Rate Analysis Three Months Ended
December 31, 2006
--------------------------------
Average Yield/
(Dollars in thousands) Balance Interest Rate
--------------------------------
ASSETS
Loans(a)(c) $ 564,201 $ 10,375 7.30%
Securities, taxable(b) 43,708 464 4.21%
Securities, nontaxable(b)(c) 27,278 422 6.14%
Nonmarketable Equity Securities 7,590 115 6.01%
Fed funds sold and other (incl. FHLB) 152 2 5.22%
---------------------
Total earning assets $ 642,929 $ 11,378 7.02%
Cash and due from banks 21,169
Allowance for loan losses (5,991)
Premises & equipment 15,066
Other assets 31,617
---------
Total assets $ 704,790
=========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Transaction accounts $ 193,648 $ 1,377 2.82%
Regular savings accounts 39,022 237 2.41%
Certificates of deposit 189,834 2,209 4.62%
Other short term borrowings 48,641 649 5.29%
FHLB Advances 94,889 1,140 4.77%
Junior subordinate debt 10,310 184 7.08%
---------------------
Total interest-bearing
liabilities 576,344 $ 5,796 3.99%
Non-interest deposits 63,787
Other liabilities 5,862
Stockholders' equity 58,797
---------
Total liabilities & equity $ 704,790
=========
Net interest income/
interest rate spread $ 5,582 3.03%
==================
Net yield on earning assets 3.44%
=========
Yield/Rate Analysis Three Months Ended
March 31, 2006
-------------------------------
Average Yield/
(Dollars in thousands) Balance Interest Rate
-------------------------------
ASSETS
Loans(a)(c) $ 477,081 $ 8,059 6.85%
Securities, taxable(b) 43,749 448 4.15%
Securities, nontaxable(b)(c) 28,019 437 6.33%
Nonmarketable Equity Securities 5,461 75 5.57%
Fed funds sold and other (incl. FHLB) 30 1 6.76%
--------- ---------
Total earning assets 554,340 $ 9,020 6.60%
Cash and due from banks 21,902
Allowance for loan losses (6,281)
Premises & equipment 14,039
Other assets 30,240
---------
Total assets $ 614,240
=========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Transaction accounts $ 165,762 $ 924 2.26%
Regular savings accounts 38,391 163 1.72%
Certificates of deposit 181,219 1,642 3.67%
Other short term borrowings 46,742 507 4.40%
FHLB Advances 61,242 621 4.11%
--------- ---------
Total interest-bearing liabilities 493,356 $ 3,857 3.17%
Non-interest deposits 60,728
Other liabilities 4,581
Stockholders' equity 55,575
---------
Total liabilities & equity $ 614,240
=========
Net interest income/
interest rate spread $ 5,163 3.43%
========= =======
Net yield on earning assets 3.78%
=======
(a) The effect of loans in nonaccrual status and fees collected is
not significant to the computations.
(b) Average investment securities exclude the valuation allowance
on securities available-for-sale.
(c) Fully tax-equivalent basis at 38% tax rate for nontaxable
securities and loans.