GREENWOOD, S.C., Oct. 22, 2008 (GLOBE NEWSWIRE) -- Community Capital Corporation (Nasdaq:CPBK) reports operating results for the nine months and quarter ending September 30, 2008.
Net income for the three months ended September 30, 2008 decreased 26.89% to $1,196,000, or $0.27 per diluted share from $1,636,000, or $0.37 per diluted share for the same period in 2007. The company recorded provision for loan losses of $1.1 million during the third quarter of 2008 compared to $300,000 during the third quarter of 2007. Return on average assets for the quarter was 0.61% for 2008 compared to 0.84% for the same period in 2007. Return on average equity was 7.35% for the quarter ended September 30, 2008 compared to 10.35% for the same period in 2007.
Net income for the nine months ended September 30, 2008 decreased 52.44% to $2,404,000 from $5,055,000 for the same period in 2007. Diluted earnings per share for the nine month period ended September 30, 2008 decreased 52.63% to $0.54 from $1.14 for the nine months ended September 30, 2007. The company recorded provision for loan losses of $5.6 million during the first nine months of 2008 compared to $625,000 during the first nine months of 2007. Non-performing assets increased $25.7 million to $28.3 million at September 30, 2008 from $2.6 million at December 31, 2007. Return on average assets for the nine months was 0.41% for 2008 compared to 0.90% for the same period in 2007. Return on average equity for the nine months was 4.93% in 2008 compared to 10.99% for the same period in 2007.
Total assets increased 1.04% to $790,000,000 at September 30, 2008 from $781,857,000 as of September 30, 2007. Total loans increased $12,934,000 or 2.04% to $645,558,000 at September 30, 2008, compared to $632,624,000 at September 30, 2007. Total deposits decreased $11,771,000 or 2.21% to $520,671,000 at September 30, 2008 from $532,442,000 at September 30, 2007.
William G. Stevens, President/CEO of Community Capital Corporation, stated, "We are not satisfied with our overall operating results but our core banking operations did generate a $1.2 million net profit for the third quarter. We are pleased however to report that we do not own any Fannie Mae or Freddie Mac investments, nor do we have any sub-prime loans. We continue to make quality loans and our FDIC insured deposits grew by $21 million during the third quarter.
"During these difficult economic times, our strong capital positions continue to support our operations, and our ability to provide our shareholders a valuable return on investment via the quarterly dividend." The quarterly cash dividend of $0.15 per share is payable by December 5, 2008 to shareholders of record as of November 21, 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 latest Quarterly Report on Form 10-Q.
Financial Highlights Three Three Nine Nine (Dollars in thousands, Months Months Months Months except per share data) Ended Ended Ended Ended Sept. 30 Sept. 30 Sept. 30 Sept. 30 2008 2007 2008 2007 (Unaudited) (Unaudited) Earnings Summary Interest income $ 10,406 $ 12,695 $ 33,213 $ 36,386 Interest expense 4,411 6,565 14,592 18,807 --------- --------- --------- --------- Net interest income 5,995 6,130 18,621 17,579 Provision for loan losses 1,100 300 5,600 625 Non-interest income 1,851 1,756 5,525 5,011 Non-interest expense 5,140 5,252 15,545 14,729 --------- --------- --------- --------- Income before taxes 1,606 2,334 3,001 7,236 Income tax expense 410 698 597 2,181 --------- --------- --------- --------- Net income $ 1,196 $ 1,636 $ 2,404 $ 5,055 ========= ========= ========= ========= Per Shares Ratios (1): Basic earnings per share $ 0.27 $ 0.37 $ 0.54 $ 1.16 Diluted earnings per share $ 0.27 $ 0.37 $ 0.54 $ 1.14 Dividends declared per share $ 0.15 $ 0.13 $ 0.45 $ 0.39 Book value per share $ 14.53 $ 14.35 $ 14.53 $ 14.35 Common Share Data (1): Outstanding at period end 4,467,605 4,413,361 4,467,605 4,413,361 Weighted average outstanding 4,431,413 4,382,219 4,424,301 4,367,208 Diluted weighted average outstanding 4,468,036 4,428,690 4,463,214 4,422,525 (1) Per share and share amounts reflect 15% stock dividend issued during the fourth quarter of 2007 Balance Sheet Highlights Average Balances: Total assets $ 782,774 $ 769,632 $ 792,180 $ 748,819 Earning assets 725,664 705,597 731,062 684,795 Loans 645,425 621,477 651,796 603,810 Deposits 507,698 522,006 519,268 504,105 Interest bearing deposits 440,077 456,929 453,921 439,875 Noninterest bearing deposits 67,621 65,077 65,347 64,230 Other borrowings 192,898 166,959 189,746 165,923 Junior subordinated debentures 10,310 10,310 10,310 10,310 Shareholders' equity 64,780 62,707 65,136 61,473 Performance Ratios: Return on average assets 0.61% 0.84% 0.41% 0.90% Return on average shareholders' equity 7.35% 10.35% 4.93% 10.99% Net interest margin 3.36% 3.52% 3.48% 3.51% (fully tax equivalent at 38%) Efficiency ratio 64.41% 60.28% 63.58% 62.10% Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended Sept. 30 Sept. 30 Sept. 30 Sept. 30 2008 2007 2008 2007 (Unaudited) (Unaudited) Asset Quality: Nonperforming loans $ 26,725 $ 2,446 $ 26,725 $ 2,446 Other real estate 1,616 107 1,616 107 Total nonperforming assets 28,341 2,553 28,341 2,553 Net charge-offs/ write-downs 123 130 1,506 225 Net charge-offs/ write-downs to average loans 0.02% 0.02% 0.23% 0.04% Allowance for loan losses to nonperforming loans 40.61% 269.83% 40.61% 269.83% Nonperforming loans to total loans 4.14% 0.39% 4.14% 0.39% Nonperforming assets to total assets 3.59% 0.33% 3.59% 0.33% Allowance for loan losses to period end loans 1.68% 1.04% 1.68% 1.04% Other Selected Ratios: Average equity to average assets 8.28% 8.15% 8.22% 8.21% Average loans to average deposits 127.13% 119.06% 125.52% 119.78% Average loans to average earning assets 88.94% 88.08% 89.16% 88.17% Balance Sheet Data (Dollars in thousands, except per share data) Period Period Period Ended Ended Ended Sept. 30 Dec. 31 Sept. 30 2008 2007 2007 (Unaudited) (Unaudited) Assets: Cash and cash equivalents: Cash and due from banks $ 16,969 $ 29,142 $ 22,185 Interest bearing deposit accounts 279 267 238 --------- --------- --------- Total cash and cash equivalents 17,248 29,409 22,423 Investment securities: Securities held-for-sale 73,055 71,542 72,622 Securities held-to-maturity 270 270 325 Nonmarketable equity securities 10,474 9,503 9,056 --------- --------- --------- Total investment securities 83,799 81,315 82,003 Loans held for sale 232 631 920 Loans receivable 645,558 645,154 632,624 Allowance for loan losses (10,853) (6,759) (6,600) Premises and equipment, net 17,479 16,729 16,148 Intangible assets 9,619 9,956 10,074 Other assets 26,918 24,163 24,265 --------- --------- --------- Total assets $ 790,000 $ 800,598 $ 781,857 ========= ========= ========= Liabilities and shareholders' equity: Deposits: Noninterest bearing $ 68,563 $ 62,175 $ 66,912 Interest bearing 452,108 457,897 465,530 --------- --------- --------- Total deposits 520,671 520,072 532,442 Federal funds purchased 20,211 47,705 26,149 Securities sold under agreements to repurchase 13,467 14,561 16,902 FHLB advances 153,605 135,525 125,550 Junior subordinated debentures 10,310 10,310 10,310 Other liabilities 6,829 7,578 7,189 --------- --------- --------- Total liabilities $ 725,093 $ 735,751 $ 718,542 ========= ========= ========= Shareholders' equity: Common stock: $1 par value; 10 million shares authorized 5,667 5,604 4,872 Nonvested restricted stock (549) (443) (578) Capital surplus 62,410 61,600 48,476 Accumulated other comprehensive income (89) 485 57 Retained earnings 14,883 15,016 27,715 Treasury stock, at cost (17,415) (17,415) (17,227) --------- --------- --------- Total shareholders' equity 64,907 64,847 63,315 --------- --------- --------- Total liabilities and shareholders' equity $ 790,000 $ 800,598 $ 781,857 ========= ========= ========= Income Statement Data Three Three Nine Nine (Dollars in thousands, Months Months Months Months except per share data) Ended Ended Ended Ended Sept. 30 Sept. 30 Sept. 30 Sept. 30 2008 2007 2008 2007 (Unaudited) (Unaudited) Interest income: Interest and fees on loans $ 9,471 $11,666 $30,324 $33,526 Interest on investment securities 934 1,026 2,884 2,843 Interest on federal funds sold and Interest-bearing deposits 1 3 5 17 ------- ------ ------ ------ Total interest income 10,406 12,695 33,213 36,386 Interest expense: Interest on deposits 2,425 4,401 8,552 12,340 Interest on borrowings 1,986 2,164 6,040 6,467 ------- ------ ------ ------ Total interest expense 4,411 6,565 14,592 18,807 Net interest income 5,995 6,130 18,621 17,579 Provision for loan losses 1,100 300 5,600 625 ------- ------ ------ ------ Net interest income after provision 4,895 5,830 13,021 16,954 Non-interest income: Service charges on deposit accounts 672 611 1,841 1,796 Gain on sale of loans held for sale 315 341 918 919 Fees from brokerage services 34 76 127 181 Income from fiduciary activities 442 396 1,398 1,142 Gain on sale of securities held-for-sale -- -- 98 -- Gain on sale of premises and equipment -- -- -- 15 Other operating income 388 332 1,143 958 ------- ------ ------ ------ Total non-interest income 1,851 1,756 5,525 5,011 Non-interest expense: Salaries and employee benefits 2,735 2,795 8,643 8,309 Net occupancy expense 340 284 996 832 Amortization of intangible assets 112 118 337 353 Furniture and equipment expense 265 224 743 658 Loss on sale of securities held-for-sale -- 417 -- 470 Other operating expenses 1,688 1,414 4,826 4,107 ------- ------ ------ ------ Total non-interest expense 5,140 5,252 15,545 14,729 Income before taxes 1,606 2,334 3,001 7,236 Income tax expense 410 698 597 2,181 ------- ------ ------ ------ Net income $ 1,196 $ 1,636 $ 2,404 $ 5,055 ======= ======= ======= ======= (Dollars in Sept. 30, 2008 Dec. 31, 2007 Sept. 30, 2007 thousands) Balance Percent Balance Percent Balance Percent Loans: Commercial and agricultural 42,531 6.59% $ 44,467 6.89% $ 42,482 6.71% Real Estate - construction 198,487 30.75% 167,180 25.91% 173,410 27.41% Real Estate - mortgage and commercial 334,064 51.75% 364,667 56.53% 342,431 54.13% Home equity 46,453 7.19% 42,628 6.61% 41,058 6.49% Consumer - Installment 22,622 3.50% 24,706 3.83% 31,696 5.01% Other 1,401 0.22% 1,506 0.23% 1,547 0.25% -------- ------- -------- ------- -------- ------- Total $645,558 100.00% $645,154 100.00% $632,624 100.00% -------- ------- -------- ------- -------- ------- (Dollars in Sept. 30, 2008 Dec. 31, 2007 Sept. 30, 2007 thousands) Balance Percent Balance Percent Balance Percent Deposits: Noninterest bearing demand 68,563 13.17% $ 62,175 11.96% $ 66,912 12.57% Interest bearing demand 63,991 12.29% 63,866 12.28% 68,988 12.96% Money market and savings 195,963 37.64% 215,795 41.49% 208,315 39.12% Certificates of deposit 192,154 36.90% 178,236 34.27% 188,227 35.35% -------- ------- -------- ------- -------- ------- Total $520,671 100.00% $520,072 100.00% $532,442 100.00% -------- ------- -------- ------- -------- ------- Wealth Management Group Fiduciary and Related Services: (Dollars in thousands, except number of accounts) Sept. 30, 2008 Dec. 31, 2007 Sept. 30, 2007 Market value of accounts $444,714 $475,818 $461,890 Market value of discretionary accounts $184,042 $201,111 $201,371 Market value of non- discretionary accounts $260,672 $274,707 $260,519 Total number of accounts 1,304 1,183 1,111 Yield/Rate Analysis YTD (Dollars in thousands) Three Months Ended Three Months Ended September 30, 2008 September 30, 2007 ---------------------------------------------------------- Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate ---------------------------------------------------------- ASSETS Loans(1)(3)$645,425 $ 9,481 5.84% $621,477 $ 11,655 7.44% Securities, taxable(2) 40,104 521 5.17% 46,785 608 5.16% Securities, nontaxable (2)(3) 29,550 433 5.83% 28,046 426 6.03% Non- marketable Equity Securities 10,306 92 3.55% 9,056 137 6.00% Fed funds sold and other (incl FHLB) 279 1 1.43% 233 3 5.11% ------------------ ------------------ Total earning assets $725,664 $ 10,528 5.77% $705,597 $ 12,829 7.21% Non-earning assets 57,110 64,035 -------- -------- Total assets $782,774 $769,632 ======== ======== LIABILITIES AND STOCK- HOLDERS' EQUITY Transaction accounts $214,021 $ 633 1.18% $230,260 $ 1,794 3.09% Regular savings accounts 36,816 197 2.13% 37,995 265 2.77% Certificates of deposit 189,239 1,595 3.35% 188,675 2,343 4.93% Other short term borrowings 43,037 244 2.26% 41,400 531 5.09% FHLB Advances 149,862 1,561 4.14% 125,558 1,449 4.58% Junior subordinate debentures 10,310 181 6.98% 10,310 183 7.04% ------------------ ------------------ Total interest- bearing liabil- ities $643,285 $ 4,411 2.73% $634,198 $ 6,565 4.10% Non-interest bearing liabilities 74,709 72,727 Stockholders' equity 64,780 62,707 -------- -------- Total liabil- ities & equity $782,774 $769,632 ======== ======== Net interest income/ interest rate spread $ 6,117 3.04% $ 6,264 3.11% ================== ================== Net yield on earning assets 3.35% 3.52% ======== ======== Yield/Rate Analysis YTD (Dollars in thousands) Nine Months Ended Nine Months Ended September 30, 2008 September 30, 2007 ---------------------------------------------------------- Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate ---------------------------------------------------------- ASSETS Loans (1)(3) $651,796 $ 30,357 6.22% $603,810 $ 33,561 7.43% Securities, taxable(2) 39,781 1,544 5.18% 45,132 1,561 4.62% Securities, nontaxable (2)(3) 29,375 1,299 5.91% 26,555 1,239 6.24% Non- marketable Equity Securities 9,829 373 5.07% 8,862 396 5.97% Fed funds sold and other (incl FHLB) 279 5 2.39% 436 17 5.21% ------------------ ------------------ Total earning assets $731,060 $ 33,578 6.14% $684,795 $ 36,774 7.18% Non-earning assets 61,120 64,024 -------- -------- Total assets $792,180 $748,819 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Transaction accounts $228,010 $ 2,516 1.47% $214,301 $ 4,792 2.99% Regular savings accounts 36,313 638 2.35% 38,911 768 2.64% Certificates of deposit 189,597 5,398 3.80% 186,663 6,781 4.86% Other short term borrowings 49,412 981 2.65% 44,076 1,699 5.15% FHLB Advances 140,334 4,518 4.30% 121,847 4,223 4.63% Junior subordinate debentures 10,310 542 7.02% 10,310 544 7.05% ------------------ ---------------- Total interest- bearing liabil- ities $653,976 $ 14,593 2.98% $616,108 $ 18,807 4.08% Non-interest bearing liabilities 73,068 71,238 Stockholders' equity 65,136 61,473 -------- -------- Total liabil- ities & equity $792,180 $748,819 ======== ======== Net interest income/ interest rate spread $ 18,985 3.15% $ 17,967 3.10% ================== ================== Net yield on earning assets 3.47% 3.51% ======== ======== (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.