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.