GREENWOOD, S.C., July 23, 2008 (PRIME NEWSWIRE) -- Community Capital Corporation (Nasdaq:CPBK) reports operating results for the six months and quarter ending June 30, 2008.
Net income for the three months ended June 30, 2008 decreased 76% to $427,000, or $0.10 per diluted share from $1,788,000, or $0.40 per diluted share for the same period in 2007. The company recorded provision for loan losses of $2.5 million during the second quarter of 2008 compared to $125,000 during the second quarter of 2007. Non-performing assets increased $913,000 to $18.7 million at June 30, 2008 from $17.9 million at March 31, 2008, primarily as a result of the deterioration of one lending relationship. Return on average assets for the quarter was 0.22% for 2008 compared to 0.95% for the same period in 2007. Return on average equity was 2.63% for the quarter ended June 30, 2008 compared to 11.64% for the same period in 2007.
Net income for the six months ended June 30, 2008 decreased 65% to $1,208,000 from $3,418,000 for the same period in 2007. Diluted earnings per share for the six month period ended June 30, 2008 decreased 65% to $0.27 from $0.77 for the six months ended June 30, 2007. The company recorded provision for loan losses of $4.5 million during the first six months of 2008 compared to $325,000 during the first six months of 2007. Non-performing assets increased $16.1 million to $18.7 million at June 30, 2008 from $2.6 million at December 31, 2007. Return on average assets for the six months was 0.31% for 2008 compared to 0.93% for the same period in 2007. Return on average equity for the six months was 3.72% in 2008 compared to 11.33% for the same period in 2007.
Total assets increased 1.81% to $782,648,000 at June 30, 2008 from $768,697,000 as of June 30, 2007. Total loans increased $30,788,000 or 5.01% to $644,895,000 at June 30, 2008, compared to $614,107,000 at June 30, 2007. Total deposits decreased $17,167,000 or 3.32% to $499,291,000 at June 30, 2008 from $516,458,000 at June 30, 2007.
William G. Stevens, President/CEO of Community Capital Corporation, stated, "We continue to be disappointed by the continued credit costs, but are encouraged that our credit issues are not systemic. In fact, the increase in non-performing assets resulted primarily from one lending relationship. Also, the increase in our provision was necessary to cover valuation issues on two loans that have been under severe scrutiny by our management team. We continue to take a very conservative approach on all aspects of managing our loan portfolio, especially collateral valuations.
"We are purposely not growing our balance sheet during these difficult economic times. However, our core banking operation, capital standings and very efficient operation give us confidence that the ensuing quarters will show much improved results. Net interest margin continues to increase from 3.46% for the first quarter to 3.61% for the second quarter in spite of the tremendous funding pressures on all banks.
"Due to our strong capital position, the board of directors has declared a $0.15 dividend." The quarterly cash dividend of $0.15 per share is payable by September 5, 2008 to shareholders of record as of August 22, 2008. 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 18 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 Quarterly Report on Form 10-Q for the quarter ended March 31, 2008.
Financial Highlights
(Dollars in thousands, Three Months Ended Six Months Ended
except per share data) June 30 June 30
2008 2007 2008 2007
Earnings Summary (Unaudited) (Unaudited)
Interest income $ 10,944 $ 12,216 $ 22,807 $ 23,691
Interest expense 4,522 6,315 10,181 12,242
---------- ---------- ---------- ----------
Net interest income 6,422 5,901 12,626 11,449
Provision for loan
losses 2,500 125 4,500 325
Non-interest income 1,816 1,646 3,674 3,254
Non-interest expense 5,329 4,825 10,405 9,477
---------- ---------- ---------- ----------
Income before taxes 409 2,597 1,395 4,901
Income tax expense (18) 809 187 1,483
---------- ---------- ---------- ----------
Net income $ 427 $ 1,788 $ 1,208 $ 3,418
---------- ---------- ---------- ----------
Per Shares Ratios (1):
Basic earnings per
share $0.10 $0.41 $0.27 $0.78
Diluted earnings per
share $0.10 $0.40 $0.27 $0.77
Dividends declared
per share $0.15 $0.13 $0.30 $0.26
Book value per share $14.44 $13.91 $14.44 $13.91
Common Share Data (1):
Outstanding at
period end 4,468,235 4,417,501 4,468,235 4,417,501
Weighted average
outstanding 4,426,205 4,375,802 4,420,705 4,359,579
Diluted weighted
average outstanding 4,468,235 4,430,599 4,461,106 4,419,414
(1) Per share and share amounts reflect 15% stock dividend issued
during the fourth quarter of 2007.
Balance Sheet Highlights
Average Balances:
Total assets $ 791,088 $ 751,797 $ 795,765 $ 737,520
Earning assets 731,253 687,750 733,790 674,224
Loans 653,252 606,779 655,017 594,830
Deposits 518,587 501,271 525,116 495,006
Interest bearing
deposits 451,860 437,106 460,918 431,206
Noninterest bearing
deposits 66,727 64,165 64,198 63,800
Other borrowings 190,362 171,796 188,152 165,397
Junior subordinated
debentures 10,310 10,310 10,310 10,310
Shareholders' equity 65,409 61,629 65,316 60,846
Performance Ratios:
Return on average
assets 0.22% 0.95% 0.31% 0.93%
Return on average
shareholders' equity 2.63% 11.64% 3.72% 11.33%
Net interest margin
(fully tax equivalent 3.61% 3.51% 3.53% 3.50%
at 38%)
Efficiency ratio 64.17% 62.90% 63.18% 63.07%
Three Months Ended Six Months Ended
June 30 June 30
2008 2007 2008 2007
(Unaudited) (Unaudited)
Asset Quality:
Nonperforming loans $ 17,464 $ 1,848 $ 17,464 $ 1,848
Other real estate 1,255 152 1,255 152
Total nonperforming
assets 18,719 2,000 18,719 2,000
Net charge-offs/
write-downs 107 58 1,383 95
Net charge-offs/
write-downs to 0.02% 0.01% 0.21% 0.02%
average loans
Allowance for loan
losses to
nonperforming loans 56.55% 347.94% 56.55% 347.94%
Nonperforming loans
to total loans 2.71% 0.30% 2.71% 0.30%
Nonperforming assets
to total assets 2.39% 0.26% 2.39% 0.26%
Allowance for loan
losses to period
end loans 1.53% 1.05% 1.53% 1.05%
Other Selected Ratios:
Average equity to
average assets 8.27% 8.20% 8.21% 8.25%
Average loans to
average deposits 125.97% 121.05% 124.74% 120.17%
Average loans to
average earning
assets 89.33% 88.23% 89.26% 88.22%
Balance Sheet Data
(Dollars in thousands,
except per share data) Period Period Period
Ended Ended Ended
June 30 Dec. 31 June 30
2008 2007 2007
(Unaudited) (Unaudited)
Assets:
Cash and cash equivalents:
Cash and due from banks $ 15,110 $ 29,142 $ 26,255
Interest bearing deposit
accounts 188 267 120
--------- --------- ---------
Total cash and cash
equivalents 15,298 29,409 26,375
Investment securities:
Securities held-for-sale 67,492 71,542 74,028
Securities held-to-maturity 270 270 325
Nonmarketable equity
securities 9,659 9,503 9,056
--------- --------- ---------
Total investment
securities 77,421 81,315 83,409
Loans held for sale 1,014 631 1,283
Loans receivable 644,895 645,154 614,107
Allowance for loan losses (9,876) (6,759) (6,430)
Premises and equipment, net 17,696 16,729 15,651
Intangible assets 9,731 9,956 10,191
Other assets 26,469 24,163 24,111
--------- --------- ---------
Total assets $ 782,648 $ 800,598 $ 768,697
--------- --------- ---------
Liabilities and shareholders'
equity:
Deposits:
Noninterest bearing $ 69,020 $ 62,175 $ 66,212
Interest bearing 430,271 457,897 450,246
--------- --------- ---------
Total deposits 499,291 520,072 516,458
Federal funds purchased 55,191 47,705 31,139
Securities sold under
agreements to repurchase 11,389 14,561 17,075
FHLB advances 135,475 135,525 125,575
Junior subordinated
debentures 10,310 10,310 10,310
Other liabilities 6,468 7,578 6,696
--------- --------- ---------
Total liabilities $ 718,124 $ 735,751 $ 707,253
--------- --------- ---------
Shareholders' equity:
Common stock: $1 par value;
10 million shares
authorized 5,668 5,604 4,871
Nonvested restricted stock (661) (443) (717)
Capital surplus 62,425 61,600 48,458
Accumulated other
comprehensive income 151 485 (702)
Retained earnings 14,356 15,016 26,656
Treasury stock, at cost (17,415) (17,415) (17,122)
--------- --------- ---------
Total shareholders'
equity 64,524 64,847 61,444
--------- --------- ---------
Total liabilities and
shareholders' equity $ 782,648 $ 800,598 $ 768,697
--------- --------- ---------
Income Statement Data
(Dollars in thousands, Three Months Ended Six Months Ended
except per June 30 June 30
share data) 2008 2007 2008 2007
(Unaudited) (Unaudited)
Interest income:
Interest and fees
on loans $ 9,981 $ 11,268 $ 20,853 $ 21,860
Interest on
investment
securities 962 945 1,950 1,817
Interest on
federal funds sold
and Interest-bearing
deposits 1 3 4 14
-------- -------- -------- --------
Total interest
income 10,944 12,216 22,807 23,691
Interest expense:
Interest on
deposits 2,574 4,093 6,127 7,939
Interest on
borrowings 1,948 2,222 4,054 4,303
-------- -------- -------- --------
Total interest
expense 4,522 6,315 10,181 12,242
Net interest income 6,422 5,901 12,626 11,449
Provision for loan
losses 2,500 125 4,500 325
-------- -------- -------- --------
Net interest income
after provision 3,922 5,776 8,126 11,124
Non-interest income:
Service charges on
deposit accounts 583 602 1,169 1,185
Gain on sale of
loans held for
sale 329 320 603 578
Fees from brokerage
services 48 48 93 105
Income from
fiduciary
activities 488 365 956 746
Gain on sale of
securities 1 -- 98 --
held-for-sale
Gain on sale of
premises and -- -- -- 15
equipment
Other operating
income 367 311 755 625
-------- -------- -------- --------
Total non-interest
income 1,816 1,646 3,674 3,254
Non-interest expense:
Salaries and
employee benefits 2,992 2,770 5,908 5,514
Net occupancy
expense 327 266 656 548
Amortization of
intangible assets 111 116 225 235
Furniture and
equipment expense 243 225 478 434
Loss on sale of
securities
held-for-sale -- -- -- 53
Other operating
expenses 1,656 1,448 3,138 2,693
-------- -------- -------- --------
Total non-interest
expense 5,329 4,825 10,405 9,477
Income before taxes 409 2,597 1,395 4,901
Income tax expense (18) 809 187 1,483
-------- -------- -------- --------
Net income $ 427 $ 1,788 $ 1,208 $ 3,418
-------- -------- -------- --------
June 30, December 31, June 30,
(Dollars in 2008 2007 2007
thousands) Balance Percent Balance Percent Balance Percent
Loans:
Commercial and
agricultural $ 44,202 6.85% $ 44,467 6.89% $ 42,914 6.99%
Real Estate -
construction 202,239 31.36% 167,180 25.91% 172,339 28.06%
Real Estate -
mortgage and
commercial 332,295 51.53% 364,668 56.53% 325,134 52.94%
Home equity 44,066 6.83% 42,628 6.61% 40,197 6.55%
Consumer -
Installment 20,689 3.21% 24,706 3.83% 32,007 5.21%
Other 1,404 0.22% 1,505 0.23% 1,516 0.25%
-------- ------ -------- ------ -------- ------
Total $644,895 100.00% $645,154 100.00% $614,107 100.00%
-------- ------ -------- ------ -------- ------
June 30, December 31, June 30,
(Dollars in 2008 2007 2007
thousands) Balance Percent Balance Percent Balance Percent
Deposits:
Noninterest
bearing
demand $ 69,020 13.82% $ 62,175 11.96% $ 66,212 12.82%
Interest
bearing
demand 64,477 12.91% 64,175 12.34% 67,341 13.04%
Money market
and savings 194,602 38.98% 215,486 41.43% 198,295 38.39%
Certificates
of deposit 171,192 34.29% 178,236 34.27% 184,610 35.75%
-------- ------ -------- ------ -------- ------
Total $499,291 100.00% $520,072 100.00% $516,458 100.00%
-------- ------ -------- ------ -------- ------
Wealth Management Group
Fiduciary and Related
Services:
(Dollars in thousands,
except number of accounts) June 30, December 31, June 30,
2008 2007 2007
Market value of accounts $ 471,603 $ 475,818 $ 448,631
Market value of
discretionary accounts $ 198,753 $ 201,111 $ 184,058
Market value of
non-discretionary
accounts $ 272,850 $ 274,707 $ 264,573
Total number of accounts 1,227 1,183 1,139
Yield/Rate Analysis YTD
Three Months Ended Three Months Ended
June 30, 2008 June 30, 2007
-------------------------------------------------
(Dollars in Average Yield/ Average Yield/
thousands) Balance Interest Rate Balance Interest Rate
-------------------------------------------------
ASSETS
Loans(1)(3) $653,252 $ 9,991 6.15% $606,779 $11,302 7.47%
Securities,
taxable(2) 38,811 500 5.18% 46,630 504 4.34%
Securities,
nontaxable
(2)(3) 29,262 446 6.13% 25,048 395 6.33%
Nonmarketable
Equity
Securities 9,661 139 5.79% 9,056 136 6.02%
Fed funds sold
and other
(incl. FHLB) 266 2 3.02% 237 3 5.08%
----------------- -----------------
Total earning
assets $731,252 $11,078 6.09% $687,750 $12,340 7.20%
Non-earning
assets 59,836 64,047
-------- --------
Total assets $791,088 $751,797
======== ========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Transaction
accounts $230,424 $ 709 1.24% $216,585 $ 1,629 3.02%
Regular savings
accounts 36,285 205 2.27% 39,547 258 2.62%
Certificates
of deposit 185,149 1,663 3.61% 180,974 2,207 4.89%
Other short
term
borrowings 54,835 306 2.24% 46,213 592 5.14%
FHLB Advances 135,527 1,459 4.33% 125,583 1,449 4.63%
Junior
subordinate
debentures 10,310 180 7.02% 10,310 180 7.00%
----------------- -----------------
Total
interest-
bearing
liabilities $652,530 $ 4,522 2.79% $619,212 $ 6,315 4.09%
Non-interest
bearing
liabilities 73,149 70,956
Stockholders'
equity 65,409 61,629
-------- --------
Total
liabilities
& equity $791,088 $751,797
======== ========
Net interest
income/
interest rate
spread $ 6,556 3.30% $ 6,025 3.11%
======= ==== ======= ====
Net yield on
earning assets 3.61% 3.51%
==== ====
Yield/Rate Analysis YTD
Six Months Ended Six Months Ended
June 30, 2008 June 30, 2007
-------------------------------------------------
(Dollars in Average Yield/ Average Yield/
thousands) Balance Interest Rate Balance Interest Rate
-------------------------------------------------
ASSETS
Loans(1)(3) $655,017 $ 20,876 6.41% $594,830 $21,906 7.43%
Securities,
taxable(2) 39,619 1,023 5.19% 44,293 953 4.34%
Securities,
nontaxable(2)
(3) 29,287 891 6.12% 25,798 813 6.36%
Nonmarketable
Equity
Securities 9,587 281 5.89% 8,763 259 5.96%
Fed funds sold
and other
(incl. FHLB) 280 4 2.87% 540 14 5.23%
----------------- -----------------
Total
earning
assets $733,790 $23,075 6.32% $674,224 $23,945 7.16%
Non-earning
assets 61,975 63,296
-------- --------
Total assets $795,765 $737,520
======== ========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Transaction
accounts $235,081 $ 1,883 1.61% $206,189 $ 2,998 2.93%
Regular savings
accounts 36,059 441 2.46% 39,376 503 2.58%
Certificates
of deposit 189,778 3,803 4.03% 185,641 4,438 4.82%
Other short
term
borrowings 52,635 737 2.82% 45,437 1,168 5.18%
FHLB Advances 135,518 2,956 4.39% 119,960 2,774 4.66%
Junior
subordinate
debentures 10,310 361 7.04% 10,310 361 7.06%
----------------- -----------------
Total
interest-
bearing
liabilities $659,381 $10,181 3.11% $606,913 $12,242 4.07%
Non-interest
bearing
liabilities 71,068 69,761
Stockholders'
equity 65,316 60,846
-------- --------
Total
liabilities
& equity $795,765 $737,520
======== ========
Net interest
income/
interest rate
spread $12,894 3.21% $11,703 3.09%
============= =============
Net yield on
earning assets 3.53% 3.50%
==== ====
(1) The effect of loans in nonaccrual status and fees collected is
not significant to the computations.
(2) Average investment securities exclude the valuation allowance on
securities available-for-sale.
(3) Fully tax-equivalent basis at 38% tax rate for nontaxable
securities and loans.