GREENWOOD, S.C., Oct. 30, 2009 (GLOBE NEWSWIRE) -- Community Capital Corporation (Nasdaq:CPBK) reports operating results for the nine months and quarter ended September 30, 2009 and announces the completion and results of the stock offering ended October 30, 2009.
* Raised $14.2 million in new capital in the rights offering, public offering, and employee purchases through our 401k plan net of expenses, of which $5.0 million was raised in the public offering and will be reflected in capital totals as of December 31, 2009. * As of October 30, 2009, executive officers and directors of the company and 401k participants own approximately 21% of total shares outstanding. * Total risk based capital at September 30, 2009 was 13.01%; tangible equity to assets at September 30, 2009 was 7.93%. * Grew deposits $5.5 million since June 30, 2009 and reduced brokered deposits by $17.1 million. Brokered deposits now comprise only 5% of total deposits. * Held $27.2 million in cash at the Federal Reserve at September 30, 2009. * Nonperforming loans increased $26.6 million during the quarter, however total impaired loans were essentially unchanged. * Increased Allowance for Loan & Lease Losses by $5.1 million during the quarter. The Allowance for Loan & Lease Losses now totals 3.31% of gross loans. * Wealth Management fees increased 2.96% during the three month period ended September 30, 2009 while the number of accounts increased by 82 over the same period. * Reduced FHLB borrowings by $30 million during the quarter, incurring a one time prepayment penalty of $359,000. * Wholesale funding, which includes FHLB borrowings, fed funds and TAF borrowings, declined $60.1 million, or 36.32% since June 30, 2009 and $81.9 million or 43.72% since September 30, 2008.
Community Capital Corporation today reported a net loss for the three months ended September 30, 2009 of $2,829,000, or $0.56 per diluted share, compared to net income of $1,196,000, or $0.27 per diluted share for the same period in 2008. The company recorded provision for loan losses of $6.0 million during the third quarter of 2009 compared to $1.1 million during the third quarter of 2008.
Return on average assets for the third quarter was (1.36)% for 2009 compared to 0.61% for the same period in 2008 and (1.51)% for the second quarter of 2009. Return on average equity was (14.97)% for the quarter ended September 30, 2009 compared to 7.35% for the same period in 2008, and (18.46)% for the quarter ended June 30, 2009.
Total assets decreased 2.96% to $767,180,000 at September 30, 2009 from $790,600,000 as of December 31, 2008, and 5.83% from $814,712,000 at June 30, 2009. Total loans decreased $39,891,000 or 6.22% to $601,846,000 at September 30, 2009 from $641,737,000 at December 31, 2008, and decreased $13,140,000 from $614,986,000 at June 30, 2009. Total deposits increased $61,269,000 or 11.93% to $574,870,000 at September 30, 2009 from $513,601,000 at December 31, 2008, and increased $5,518,000 or 0.97% from $569,352,000 at June 30, 2009.
William G. Stevens, President/CEO of Community Capital Corporation, stated, "During this difficult economic environment, we are aggressively executing our strategy of strengthening our balance sheet and addressing our troubled assets. We continue to grow our low cost local deposit base while virtually eliminating our dependence on more volatile short term wholesale funding. Simultaneously we are being creative but disciplined as we work through our troubled loans. We established a "task force" comprised of our most senior and experienced lenders and this group is focused on resolving the substandard portion of our loan portfolio as quickly and effectively as possible.
"Community Capital is the only publicly traded bank holding company with less than $2 billion in assets in South Carolina that has been able to complete a common equity raise during 2009. This new capital was provided by our existing shareholders and by new investors that believe that ours is a bank of the future."
Community Capital Corporation is the parent company of CapitalBank, which operates 18 community oriented branches throughout upstate South Carolina and offers 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 .
Cautionary Note Regarding Forward-Looking Statements
Some of our statements contained in this news release are "forward-looking statements" within the meaning of the Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of invoking these safe harbor provisions. Forward-looking statements are not guarantees of performance or results. When we use words like "may," "plan," "contemplate," "anticipate," "believe," "intend," "continue," "expect," "project," "predict," "estimate," "target," "could," "is likely," "should," "would," "will," and similar expressions, you should consider them as identifying forward-looking statements, although we may use other phrasing. These forward-looking statements involve risks and uncertainties and are based on our beliefs and assumptions, and on the information available to us at the time that these disclosures were prepared. These forward-looking statements involve risks and uncertainties and may not be realized due to a variety of factors, including, but not limited to, the following: the challenges, costs and complications associated with the continued development of our branches; the potential that loan charge-offs may exceed the allowance for loan losses or that such allowance will be increased as a result of factors beyond the control of us; our ability and success in resolving troubled loans; our dependence on senior management; competition from existing financial institutions operating in our market areas as well as the entry into such areas of new competitors with greater resources, broader branch networks and more comprehensive services; adverse conditions in the stock market, the public debt market, and other capital markets (including changes in interest rate conditions); changes in deposit rates, the net interest margin, and funding sources; inflation, interest rate, and market fluctuations; risks inherent in making loans including repayment risks and value of collateral; the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations may be different than expected resulting in, among other things, a deterioration in credit quality or a reduced demand for credit, including the resultant effect on our loan portfolio and allowance for loan losses; fluctuations in consumer spending and saving habits; the demand for our products and services; technological changes; the challenges and uncertainties in the implementation of our expansion and development strategies; the ability to increase market share; the adequacy of expense projections and estimates of impairment loss; the impact of changes in accounting policies by the Securities and Exchange Commission (SEC); unanticipated regulatory or judicial proceedings; the potential negative effects of future legislation affecting financial institutions (including without limitation laws concerning taxes, banking, securities, and insurance); the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; the timely development and acceptance of products and services, including products and services offered through alternative delivery channels such as the Internet; the impact on our business, as well as on the risks set forth above, of various domestic or international military or terrorist activities or conflicts; other factors described in this news release and in other reports filed by the Company with the SEC; and our success at managing the risks involved in the foregoing.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this Cautionary Note. Our actual results may differ significantly from those we discuss in these forward-looking statements. For other factors, risks and uncertainties that could cause our actual results to differ materially from estimates and projections contained in these forward-looking statements, please read the Company's Annual Report on Form 10-K for the year ended December 31, 2008 and the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2009 and June 30, 2009. Any forward-looking statement speaks only as of the date which such statement was made, and, except as required by law, we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.
Financial Highlights
(Dollars in thousands, except per share data)
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
Sept. 30 Sept. 30 Sept. 30 Sept. 30
2009 2008 2009 2008
Earnings Summary (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest income $ 9,026 $ 10,406 $ 27,731 $ 33,213
Interest expense 3,645 4,411 10,641 14,592
---------- ---------- ---------- ----------
Net interest income 5,381 5,995 17,090 18,621
Provision for loan
losses 6,000 1,100 13,800 5,600
Non-interest income 1,867 1,851 5,965 5,525
Non-interest expense 5,880 5,140 17,655 15,545
---------- ---------- ---------- ----------
Income (loss) before
taxes (4,632) 1,606 (8,400) 3,001
Income tax expense
(benefit) (1,803) 410 (3,493) 597
---------- ---------- ---------- ----------
Net income (loss) $ (2,829) $ 1,196 $ (4,907) $ 2,404
---------- ---------- ---------- ----------
Per Shares Ratios:
Basic earnings per
share $ (0.56) $ 0.27 $ (1.06) $ 0.54
Diluted earnings per
share $ (0.56) $ 0.27 $ (1.06) $ 0.54
Dividends declared per
share $ 0.00 $ 0.15 $ 0.15 $ 0.45
Book value per share $ 8.64 $ 14.53 $ 8.64 $ 14.53
Common Share Data:
Outstanding at
period end 8,023,179 4,467,605 8,023,179 4,467,605
Weighted average
outstanding 5,013,726 4,431,413 4,638,143 4,424,301
Diluted weighted
average outstanding 5,013,726 4,468,036 4,638,143 4,463,214
Capital Ratios:
Tier 1 leverage ratio 8.95% 8.47% 8.95% 8.47%
Tier 1 risk-based
capital ratio 11.73% 10.29% 11.73% 10.29%
Total risk-based
capital ratio 13.01% 11.55% 13.01% 11.55%
Tangible equity to
tangible assets
(period end) 7.93% 7.08% 7.93% 7.08%
Balance Sheet Highlights
(Dollars in Thousands)
Three Three Three Nine Nine
Months Months Months Months Months
Ended Ended Ended Ended Ended
Sept. 30 June 30 Sept. 30 Sept. 30 Sept. 30
2009 2009 2008 2009 2008
(Un- (Un- (Un- (Un- (Un-
Average Balances: audited) audited) audited) audited) audited)
Total assets $780,420 $782,430 $782,774 $782,328 $792,180
Earning assets 723,501 715,954 725,664 718,993 731,062
Loans 609,033 626,961 645,425 624,327 651,796
Deposits 579,280 529,001 507,698 542,508 519,268
Interest bearing
deposits 474,718 428,957 440,077 445,396 453,921
Noninterest bearing
deposits 104,562 100,044 67,621 97,112 65,347
Other borrowings 119,455 172,840 192,898 158,206 189,746
Junior subordinated
debentures 10,310 10,310 10,310 10,310 10,310
Shareholders' equity 63,676 63,935 64,780 64,289 65,136
Performance Ratios:
Return on average
assets (1.36)% (1.51)% 0.61% (0.84)% 0.41%
Return on average
shareholders' equity (14.97)% (18.46)% 7.35% (10.20)% 4.93%
Net interest margin
(fully tax
equivalent at 38%) 3.00% 3.29% 3.35% 3.24% 3.47%
Efficiency ratio 77.02% 89.05% 64.41% 76.58% 63.58%
Three Three Three Nine Nine
Months Months Months Months Months
Ended Ended Ended Ended Ended
Sept. 30 June 30 Sept. 30 Sept. 30 Sept. 30
2009 2009 2008 2009 2008
(Un- (Un- (Un- (Un- (Un-
audited) audited) audited) audited) audited)
Asset Quality:
Nonperforming loans $ 55,438 $ 28,826 $ 26,725 $ 55,438 $ 26,725
Other real estate 6,181 5,554 1,616 6,181 1,616
Total nonperforming
assets 61,619 34,380 28,341 61,619 28,341
Total Impaired Loans 102,001 101,770 27,278 102,001 27,278
Net charge-offs/
write-downs 908 2,790 123 7,474 1,506
Net charge-offs/
write-downs to
average loans 0.15% 0.45% 0.02% 1.20% 0.23%
Allowance for loan
losses to
nonperforming loans 35.97% 51.52% 40.61% 35.97% 40.61%
Nonperforming loans
to total loans 9.21% 4.69% 4.14% 9.21% 4.14%
Nonperforming assets
to total assets 8.03% 4.22% 3.59% 8.03% 3.59%
Allowance for loan
losses to period
end loans 3.31% 2.41% 1.68% 3.31% 1.68%
Other Selected
Ratios:
Average equity to
average assets 8.16% 8.17% 8.28% 8.22% 8.22%
Average loans to
average deposits 105.14% 118.52% 127.13% 115.08% 125.52%
Average loans to
average earning
assets 84.18% 87.57% 88.94% 86.83% 89.16%
Balance Sheet Data
(Dollars in thousands, except per share data)
Period Period Period Period
Ended Ended Ended Ended
Sept. 30 June 30 Dec. 31 Sept. 30
2009 2009 2008 2008
(Un- (Un- (Un-
audited) audited) audited)
Assets:
Cash and cash equivalents:
Cash and due from banks $ 10,183 $ 16,114 $ 11,970 $ 16,969
Interest bearing deposit
accounts 27,210 58,101 1,642 279
-------- -------- -------- --------
Total cash and cash
equivalents 37,393 74,215 13,612 17,248
Investment securities:
Securities held-for-sale 73,410 65,409 78,828 73,055
Securities held-to-maturity 215 215 215 270
Nonmarketable equity
securities 10,186 10,186 10,815 10,474
-------- -------- -------- --------
Total investment securities 83,811 75,810 89,858 83,799
Loans held for sale 815 3,394 303 232
Loans receivable 601,846 614,986 641,737 645,558
Allowance for loan losses (19,943) (14,851) (13,617) (10,853)
Premises and equipment, net 16,373 16,593 17,243 17,479
Intangible assets 9,187 9,294 9,507 9,619
Other assets
37,698 35,271 31,957 26,918
-------- -------- -------- --------
Total assets $767,180 $814,712 $790,600 $790,000
-------- -------- -------- --------
Liabilities and shareholders'
equity:
Deposits:
Noninterest bearing $102,906 $105,696 $ 73,663 $ 68,563
Interest bearing 471,964 463,656 439,938 452,108
-------- -------- -------- --------
Total deposits 574,870 569,352 513,601 520,671
Federal funds purchased,
securities sold under
agreements to repurchase and
other short term borrowings -- 30,109 33,838 20,211
FHLB advances 105,400 135,400 161,185 167,072
Junior subordinated debentures 10,310 10,310 10,310 10,310
Other liabilities 7,301 7,470 6,709 6,829
-------- -------- -------- --------
Total liabilities $697,881 $752,641 $725,643 $725,093
-------- -------- -------- --------
Shareholders' equity:
Common stock: $1 par value;
10 million shares authorized 8,903 5,716 5,667 5,667
Nonvested restricted stock (460) (556) (445) (549)
Capital surplus 67,721 62,658 62,405 62,410
Accumulated other comprehensive
income 1,000 167 527 (89)
Retained earnings 8,633 11,463 14,218 14,883
Treasury stock, at cost (16,498) (17,377) (17,415) (17,415)
-------- -------- -------- --------
Total shareholders' equity 69,299 62,071 64,957 64,907
-------- -------- -------- --------
Total liabilities and
shareholders' equity $767,180 $814,712 $790,600 $790,000
-------- -------- -------- --------
Income Statement Data
(Dollars in thousands, except per share data)
Three Three Three Nine Nine
Months Months Months Months Months
Ended Ended Ended Ended Ended
Sept. 30 June 30 Sept. 30 Sept. 30 Sept. 30
2009 2009 2008 2009 2008
(Un- (Un- (Un- (Un- (Un-
audited) audited) audited) audited) audited)
Interest income:
Interest and fees
on loans $ 8,186 $ 8,401 $ 9,471 $ 25,077 $ 30,324
Interest on
investment
securities 816 831 934 2,622 2,884
Interest on federal
funds sold and
Interest-bearing
deposits 24 7 1 32 5
-------- -------- -------- -------- --------
Total interest
income 9,026 9,239 10,406 27,731 33,213
Interest expense:
Interest on deposits 2,199 1,823 2,425 5,863 8,552
Interest on
borrowings 1,446 1,659 1,986 4,778 6,040
-------- -------- -------- -------- --------
Total interest
expense 3,645 3,482 4,411 10,641 14,592
Net interest income 5,381 5,757 5,995 17,090 18,621
Provision for loan
loss 6,000 5,800 1,100 13,800 5,600
-------- -------- -------- -------- --------
Net interest income
after provision (619) (43) 4,895 3,290 13,021
Non-interest income:
Service charges on
deposit accounts 594 573 672 1,730 1,841
Gain on sale of
loans held for sale 359 493 315 1,174 918
Fees from brokerage
services 74 74 34 185 127
Income from
fiduciary
activities 418 406 442 1,172 1,398
Gain on sale of
securities
held-for-sale 3 248 -- 396 98
Other operating
income 419 444 388 1,308 1,143
-------- -------- -------- -------- --------
Total non-interest
income 1,867 2,238 1,851 5,965 5,525
Non-interest expense:
Salaries and
employee benefits 2,600 2,617 2,735 7,811 8,643
Net occupancy
expense 316 320 340 956 996
Amortization of
intangible assets 106 105 112 320 337
Furniture and
equipment expense 212 223 265 667 743
Loss on sale of
fixed assets 20 21 -- 39 --
Other operating
expenses 2,626 3,736 1,688 7,862 4,826
-------- -------- -------- -------- --------
Total non-interest
expense 5,880 7,022 5,140 17,655 15,545
Income (loss) before
taxes (4,632) (4,827) 1,606 (8,400) 3,001
Income tax expense
(benefit) (1,803) (1,886) 410 (3,493) 597
-------- -------- -------- -------- --------
Net income (loss) $ (2,829) $ (2,941) $ 1,196 $ (4,907) $ 2,404
-------- -------- -------- -------- --------
September 30, 2009 June 30, 2009
(Dollars in thousands) Balance Percent Balance Percent
Loans:
Commercial and agricultural $ 36,956 6.14% $ 38,705 6.29%
Real estate - construction 177,584 29.50% 176,534 28.71%
Real estate - mortgage and
commercial 319,026 53.01% 330,782 53.79%
Home equity 47,315 7.86% 48,634 7.91%
Consumer - Installment 19,538 3.25% 18,840 3.06%
Other
1,427 0.24% 1,491 0.24%
-------- ------- -------- -------
Total $601,846 100.00% $614,986 100.00%
-------- ------- -------- -------
December 31, 2008 September 30, 2008
(Dollars in thousands) Balance Percent Balance Percent
Loans:
Commercial and agricultural $ 43,442 6.77% $ 42,531 6.59%
Real estate - construction 185,414 28.89% 198,487 30.75%
Real estate - mortgage and
commercial 344,457 53.68% 334,064 51.75%
Home equity 47,830 7.45% 46,453 7.19%
Consumer - Installment 19,073 2.97% 22,622 3.50%
Other
1,521 0.24% 1,401 0.22%
-------- ------- -------- -------
Total $641,737 100.00% $645,558 100.00%
-------- ------- -------- -------
September 30, 2009 June 30, 2009
(Dollars in thousands) Balance Percent Balance Percent
Deposits:
Noninterest bearing demand $102,906 17.90% $105,696 18.56%
Interest bearing demand 61,098 10.63% 62,559 10.99%
Money market and savings 167,967 29.22% 139,677 24.53%
Brokered deposits 29,417 5.12% 46,561 8.18%
Certificates of deposit 213,482 37.13% 214,859 37.74%
-------- ------- -------- -------
Total $574,870 100.00% $569,352 100.00%
-------- ------- -------- -------
December 31, 2008 September 30, 2008
(Dollars in thousands) Balance Percent Balance Percent
Deposits:
Noninterest bearing demand $ 73,663 14.35% $ 68,563 13.17%
Interest bearing demand 65,699 12.79% 63,487 12.19%
Money market and savings 133,807 26.05% 142,502 27.37%
Brokered deposits 49,828 9.70% 53,965 10.36%
Certificates of deposit 190,604 37.11% 192,154 36.91%
-------- ------- -------- -------
Total $513,601 100.00% $520,671 100.00%
-------- ------- -------- -------
Wealth Management Group Fiduciary and Related Services:
(Dollars in thousands, except number of accounts)
Sept. 30, June 30, Dec. 31, Sept. 30,
2009 2009 2008 2008
Market value of accounts $477,414 $438,929 $396,596 $444,714
Market value of discretionary
accounts $180,703 $167,760 $160,488 $184,042
Market value of
non-discretionary accounts $296,711 $271,169 $236,108 $260,672
Total number of accounts 1,397 1,315 1,334 1,304
Yield/Rate Analysis YTD
Three Months Ended Three Months Ended
September 30, 2009 September 30, 2008
-------------------------------------------------
(Dollars in Average Yield/ Average Yield/
thousands) Balance Interest Rate Balance Interest Rate
-------------------------------------------------
ASSETS
Loans(1)(3) $609,033 $ 8,194 5.34% $645,425 $ 9,481 5.84%
Securities,
taxable(2) 47,186 536 4.51% 40,104 521 5.17%
Securities,
nontaxable(2)(3) 21,842 320 5.81% 29,550 433 5.83%
Nonmarketable Equity
Securities 10,186 48 1.87% 10,306 92 3.55%
Fed funds sold and
other (incl. FHLB) 35,254 24 0.27% 279 1 1.43%
----------------- -----------------
Total earning
assets $723,501 $ 9,122 5.00% $725,664 $ 10,528 5.77%
Non-earning assets 56,919 57,110
-------- --------
Total assets $780,420 $782,774
======== ========
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Transaction
accounts $186,265 $ 473 1.01% $214,021 $ 633 1.18%
Regular savings
accounts 41,999 174 1.64% 36,816 197 2.13%
Certificates of
deposit 246,454 1,551 2.50% 189,239 1,595 3.35%
Other short term
borrowings 359 -- 0.00% 43,037 244 2.26%
FHLB Advances 119,096 1,262 4.20% 149,862 1,561 4.14%
Junior subordinate
debentures 10,310 185 7.12% 10,310 181 6.98%
----------------- -----------------
Total interest-
bearing
liabilities $604,483 $ 3,645 2.39% $643,285 $ 4,411 2.73%
Non-interest bearing
liabilities 112,261 74,709
Stockholders' equity 63,676 64,780
-------- --------
Total liabilities
& equity $780,420 $782,774
======== ========
Net interest income/
interest rate
spread $ 5,477 2.61% $ 6,117 3.04%
=============== ===============
Net yield on earning
assets 3.00% 3.35%
====== ======
Yield/Rate Analysis YTD
Nine Months Ended Nine Months Ended
September 30, 2009 September 30, 2008
-------------------------------------------------
(Dollars in Average Yield/ Average Yield/
thousands) Balance Interest Rate Balance Interest Rate
-------------------------------------------------
ASSETS
Loans(1)(3) $624,327 $ 25,101 5.38% $651,796 $ 30,357 6.22%
Securities,
taxable(2) 45,531 1,669 4.90% 39,781 1,544 5.18%
Securities,
nontaxable(2)(3) 25,025 1,165 6.22% 29,375 1,299 5.91%
Nonmarketable Equity
Securities 4,753 109 3.07% 9,829 373 5.07%
Fed funds sold and
other (incl. FHLB) 19,357 32 0.22% 279 5 2.39%
----------------- -----------------
Total earning
assets $718,993 $ 28,076 5.22% $731,060 $ 33,578 6.14%
Non-earning assets 63,335 61,120
-------- --------
Total assets $782,328 $792,180
======== ========
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Transaction
accounts $194,066 $ 1,092 0.75% $228,010 $ 2,516 1.47%
Regular savings
accounts 39,452 504 1.71% 36,313 638 2.35%
Certificates of
deposit 211,878 4,266 2.69% 189,597 5,398 3.80%
Other short term
borrowings 23,935 57 0.32% 49,412 981 2.65%
FHLB Advances 134,271 4,177 4.16% 140,334 4,518 4.30%
Junior subordinate
debentures 10,310 545 7.07% 10,310 542 7.02%
----------------- -----------------
Total interest-
bearing
liabilities $613,912 $ 10,641 2.32% $653,976 $ 14,593 2.98%
Non-interest bearing
liabilities 104,127 73,068
Stockholders' equity 64,289 65,136
-------- --------
Total liabilities
& equity $782,328 $792,180
======== ========
Net interest income/
interest rate
spread $ 17,435 2.90% $ 18,985 3.15%
=============== ===============
Net yield on earning
assets 3.24% 3.47%
====== ======
(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.