GREENWOOD, S.C., July 18, 2007 (PRIME NEWSWIRE) -- Community Capital Corporation (Nasdaq:CPBK) reports operating results for the six months and quarter ending June 30, 2007.
Net income for the three months ended June 30, 2007 increased 16% to $1,788,000, or $0.46 per diluted share from $1,548,000, or $0.41 per diluted share for the same period in 2006. Return on average assets for the quarter was 0.95% for 2007 compared to 0.97% for 2006. Return on average equity was 11.64% compared to 11.05% in 2006.
Net income for the six months ended June 30, 2007 increased 13% to $3,418,000 from $3,021,000 for the same period in 2006. Diluted earnings per share for the six month period ended June 30, 2007 increased 13% to $0.89 from $0.79 for the six months ended June 30, 2006. Return on average assets for the six months was 0.93% for 2007 compared to 0.97% for 2006. Return on average equity was 11.33% in 2007 compared to 10.84% in 2006.
Total assets increased 14% to $768,697,000 at June 30, 2007 from $674,562,000 as of June 30, 2006. Total loans increased $85,541,000 or 16% to $614,107,000 at June 30, 2007, compared to $528,566,000 at June 30, 2006. Total deposits increased $34,980,000 or 7% to $516,458,000 at June 30, 2007 from $481,478,000 at June 30, 2006.
The company also declared a quarterly cash dividend of $0.15 per share, which is payable by September 7, 2007 to shareholders of record as of August 24, 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 Quarterly Report on Form 10-Q for the quarter ended March 31, 2007.
Financial Highlights
(Dollars in thousands, except per share data)
Three Months Six Months
Ended Ended
June 30 June 30
(Unaudited) (Unaudited)
2007 2006 2007 2006
--------- --------- --------- ---------
Earnings Summary
Interest income $ 12,216 $ 9,847 $ 23,691 $ 18,735
Interest expense 6,315 4,684 12,242 8,541
--------- --------- --------- ---------
Net interest income 5,901 5,163 11,449 10,194
Provision for loan
losses 125 150 325 150
Non-interest income 1,646 1,457 3,254 2,817
Non-interest expense 4,825 4,432 9,477 8,840
--------- --------- --------- ---------
Income before taxes 2,597 2,038 4,901 4,021
Income tax expense 809 490 1,483 1,000
--------- --------- --------- ---------
Net income $ 1,788 $ 1,548 $ 3,418 $ 3,021
--------- --------- --------- ---------
Per Shares Ratios:
Basic earnings
per share $ 0.47 $ 0.41 $ 0.90 $ 0.81
Diluted earnings
per share $ 0.46 $ 0.41 $ 0.89 $ 0.79
Dividends declared
per share $ 0.15 $ 0.15 $ 0.30 $ 0.30
Book value per share $ 16.00 $ 14.93 $ 16.00 $ 14.93
Common Share Data:
Outstanding at
period end 3,841,305 3,781,462 3,841,305 3,781,462
Weighted average
outstanding 3,805,045 3,736,089 3,790,938 3,722,737
Diluted weighted
average outstanding 3,852,695 3,815,199 3,842,969 3,808,814
Balance Sheet Highlights
Average Balances:
Total assets $ 751,797 $ 647,147 $ 737,520 $ 630,785
Earning assets 687,750 585,751 674,224 570,133
Loans 606,779 508,549 594,830 492,902
Deposits 501,271 469,452 495,006 457,841
Interest bearing
deposits 437,106 405,320 431,206 395,250
Noninterest bearing
deposits 64,165 64,132 63,800 62,591
Other borrowings 171,796 113,281 165,397 110,647
Junior subordinated
debentures 10,310 1,813 10,310 911
Shareholders' equity 61,629 56,823 60,846 56,202
Performance Ratios:
Return on average
assets 0.95% 0.97% 0.93% 0.97%
Return on average
shareholders' equity 11.64% 11.05% 11.33% 10.84%
Net interest margin
(fully tax equivalent
at 38%) 3.51% 3.68% 3.50% 3.70%
Efficiency ratio 62.90% 65.73% 63.07% 66.65%
Asset Quality:
Nonperforming loans $ 1,848 $ 2,428 $ 1,848 $ 2,428
Other real estate 152 4 152 4
Total nonperforming
assets 2,000 2,432 2,000 2,432
Net charge-offs 58 66 96 328
Net charge-offs to
average loans 0.01% 0.01% 0.02% 0.07%
Allowance for loan
losses to non-
performing loans 347.94% 253.13% 347.94% 253.13%
Nonperforming loans
to total loans 0.30% 0.46% 0.30% 0.46%
Nonperforming assets
to total assets 0.26% 0.36% 0.26% 0.36%
Allowance for loan
losses to period
end loans 1.05% 1.16% 1.05% 1.16%
Other Selected Ratios:
Average equity to
average assets 8.20% 8.78% 8.25% 8.91%
Average loans to
average deposits 121.05% 108.33% 120.17% 107.66%
Average loans to
average earning
assets 88.23% 86.82% 88.22% 86.45%
Balance Sheet Data
(Dollars in thousands, except per share data)
Period Ended
--------------------------------
June 30 December 31 June 30
2007 2006 2006
(Unaudited) (Unaudited)
-------- -------- --------
Assets:
Cash and cash equivalents:
Cash and due from banks $ 26,255 $ 22,167 $ 29,912
Interest bearing deposit accounts 120 307 35
-------- -------- --------
Total cash and cash equivalents 26,375 22,474 29,947
Investment securities:
Securities held-for-sale 74,028 65,496 67,189
Securities held-to-maturity 325 380 380
Nonmarketable equity securities 9,056 8,073 7,033
-------- -------- --------
Total investment securities 83,409 73,949 74,602
Loans held for sale 1,283 554 970
Loans receivable 614,107 573,639 528,566
Allowance for loan losses (6,430) (6,200) (6,146)
Premises and equipment, net 15,651 15,429 14,450
Intangible assets 10,191 10,427 10,672
Other assets 24,111 22,972 21,501
-------- -------- --------
Total assets $768,697 $713,244 $674,562
-------- -------- --------
Liabilities and shareholders' equity:
Deposits:
Noninterest bearing $ 66,212 $ 63,733 $ 66,823
Interest bearing 450,246 423,223 414,655
-------- -------- --------
Total deposits 516,458 486,956 481,478
Federal funds purchased 31,139 26,953 20,307
Securities sold under agreements
to repurchase 17,075 18,329 13,793
FHLB advances 125,575 105,625 87,175
Junior subordinated debentures 10,310 10,310 10,310
Other liabilities 6,696 6,145 5,032
-------- -------- --------
Total liabilities $707,253 $654,318 $618,095
-------- -------- --------
Shareholders' equity:
Common stock: $1 par value;
10 million shares authorized 4,871 4,818 4,811
Nonvested restricted stock (717) (558) (779)
Capital surplus 48,458 47,671 47,614
Accumulated other comprehensive
income (702) (269) (840)
Retained earnings 26,656 24,386 22,783
Treasury stock, at cost (17,122) (17,122) (17,122)
-------- -------- --------
Total shareholders' equity 61,444 58,926 56,467
-------- -------- --------
Total liabilities and
shareholders' equity $768,697 $713,244 $674,562
-------- -------- --------
Income Statement Data
(Dollars in thousands,
except per share data)
Three Months Six Months
Ended Ended
June 30 June 30
2007 2006 2007 2006
(Unaudited) (Unaudited)
Interest income:
Interest and fees
on loans $ 11,268 $ 9,001 $ 21,860 $ 17,053
Interest on
investment
securities 945 841 1,817 1,676
Interest on
federal funds
sold and
interest-bearing
deposits 3 5 14 6
-------- -------- -------- --------
Total interest
income 12,216 9,847 23,691 18,735
Interest expense:
Interest on
deposits 4,093 3,315 7,939 6,044
Interest on
borrowings 2,222 1,369 4,303 2,497
-------- -------- -------- --------
Total interest
expense 6,315 4,684 12,242 8,541
Net interest income 5,901 5,163 11,449 10,194
Provision for
loan losses
125 150 325 150
-------- -------- -------- --------
Net interest income
after provision 5,776 5,013 11,124 10,044
Non-interest income:
Service charges
on deposit
accounts 602 665 1,185 1,287
Gain on sale of
loans held for
sale 320 172 578 337
Fees from
brokerage
services 48 87 105 108
Income from
fiduciary
activities 365 272 746 545
Gain on sale of
securities
held-for-sale -- 6 -- 6
Gain on sale of
premises and -- -- 15 2
equipment
Other operating
income 311 255 625 532
-------- -------- -------- --------
Total
non-interest
income 1,646 1,457 3,254 2,817
Non-interest expense:
Salaries and
employee
benefits 2,770 2,616 5,514 5,187
Net occupancy
expense 266 272 548 552
Amortization
of intangible
assets 116 121 235 246
Furniture and
equipment
expense 225 215 434 412
Loss on sale
of securities
held-for-sale -- -- 53 --
Other operating
expenses 1,448 1,208 2,693 2,443
-------- -------- -------- --------
Total
non-interest
expense 4,825 4,432 9,477 8,840
Income before taxes 2,597 2,038 4,901 4,021
Income tax expense
809 490 1,483 1,000
-------- -------- -------- --------
Net income $ 1,788 $ 1,548 $ 3,418 $ 3,021
-------- -------- -------- --------
Basic earnings per
share $0.47 $0.41 $0.90 $0.81
Diluted earnings
per share $0.46 $0.41 $0.89 $0.79
June 30, 2007 December 31, 2006 June 30, 2006
Balance Percent Balance Percent Balance Percent
Loans:
Commercial
and
agricultural $ 42,914 6.99% $44,910 7.83% $ 40,772 7.71%
Real Estate -
construction 172,339 28.06% 142,694 24.88% 111,982 21.19%
Real Estate
- mortgage
and 325,134 52.94% 321,440 56.03% 304,263 57.57%
commercial
Home equity 40,197 6.55% 40,805 7.11% 42,922 8.12%
Consumer -
Installment 32,007 5.21% 22,092 3.85% 27,081 5.12%
Other 1,516 0.25% 1,698 0.30% 1,546 0.29%
-------- ------ -------- ------ -------- ------
Total $614,107 100.00% $573,639 100.00% $528,566 100.00%
-------- ------ -------- ------ -------- ------
June 30, 2007 December 31, 2006 June 30, 2006
Balance Percent Balance Percent Balance Percent
Deposits:
Noninterest
bearing
demand $ 66,212 12.82% $ 63,733 13.09% $ 66,823 13.88%
Interest
bearing
demand 67,341 13.04% 64,743 13.30% 69,043 14.34%
Money market
and savings 198,295 38.39% 168,592 34.62% 153,677 31.92%
Certificates
of deposit 184,610 35.75% 189,888 38.99% 191,935 39.86%
-------- ------ -------- ------ -------- ------
Total $516,458 100.00% $486,956 100.00% $481,478 100.00%
-------- ------ -------- ------ -------- ------
Wealth Management Group
Fiduciary and Related Services:
(Dollars in thousands,
except number of accounts)
June 30, December 31, June 30,
2007 2006 2006
Market value of accounts $ 448,631 $ 370,362 $ 304,614
Market value of
discretionary accounts $ 184,058 $ 154,168 $ 135,063
Market value of
non-discretionary
accounts $ 264,573 $ 216,194 $ 169,551
Total number of accounts 1,139 975 839
Yield/Rate
Analysis YTD Three Months Ended Three Months Ended
June 30, 2007 June 30, 2006
--------------------------------------------------
(Dollars in Average Yield/ Average Yield/
thousands) Balance Interest Rate Balance Interest Rate
--------------------------------------------------
ASSETS
Loans(a)(c) $606,779 $ 11,302 7.47% $508,549 $ 9,010 7.11%
Securities,
taxable(b) 46,630 504 4.34% 43,536 451 4.16%
Securities,
nontaxable(b)(c) 25,048 395 6.33% 27,394 426 6.24%
Nonmarketable
Equity
Securities 9,056 136 6.02% 5,899 83 5.64%
Fed funds sold
and other
(incl. FHLB) 237 3 5.08% 373 4 4.30%
-------- -------- ---- --------- ------- ----
Total earning
assets $687,750 $ 12,340 7.20% $585,751 $ 9,974 6.83%
Non-earning --------
assets 64,047 61,396
-------- --------
Total assets $751,797 $647,147
======== ========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Transaction
accounts $216,585 $ 1,629 3.02% $178,154 $ 1,201 2.70%
Regular savings
accounts 39,547 258 2.62% 39,210 189 1.93%
Certificates of
deposit 180,974 2,207 4.89% 187,956 1,926 4.11%
Other short term
borrowings 46,213 592 5.14% 45,713 572 5.02%
FHLB Advances 125,583 1,449 4.63% 67,568 764 4.54%
Junior
subordinate
debentures 10,310 180 7.00% 1,813 32 7.08%
-------- -------- ---- --------- ------- ----
Total
interest-
bearing
liabilities $619,212 $ 6,315 4.09% $520,414 $ 4,684 3.61%
Non-interest
bearing
liabilities 70,956 69,910
Stockholders'
equity 61,629 56,823
-------- --------
Total
liabilities
& equity $751,797 $647,147
======== ========
Net interest
income/interest
rate spread $ 6,025 3.11% $ 5,290 3.22%
======= ==== ======= ====
Net yield on
earning assets 3.51% 3.62%
==== ====
Yield/Rate
Analysis YTD Six Months Ended Six Months Ended
June 30, 2007 June 30, 2006
--------------------------------------------------
(Dollars in Average Yield/ Average Yield/
thousands) Balance Interest Rate Balance Interest Rate
--------------------------------------------------
ASSETS
Loans(a)(c) $594,830 $21,906 7.43% $492,902 $17,069 6.98%
Securities,
taxable(b) 44,293 953 4.34% 43,643 899 4.15%
Securities,
nontaxable(b)(c) 25,798 813 6.36% 27,705 861 6.27%
Nonmarketable
Equity
Securities 8,763 259 5.96% 5,681 158 5.61%
Fed funds sold
and other
(incl. FHLB) 540 14 5.23% 202 6 5.99%
-------- -------- -------- -------
Total earning
assets $674,224 $ 23,945 7.16% $570,133 $18,993 6.72%
Non-earning
assets 63,296 60,652
-------- --------
Total assets $737,520 $630,785
======== ========
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Transaction
accounts $206,189 $ 2,998 2.93% $171,842 $ 2,123 2.49%
Regular savings
accounts 39,376 503 2.58% 38,802 352 1.83%
Certificates of
deposit 185,641 4,438 4.82% 184,606 3,566 3.90%
Other short term
borrowings 45,437 1,168 5.18% 46,225 1,083 4.72%
FHLB Advances 119,960 2,774 4.66% 64,422 1,385 4.34%
Junior
subordinate
debentures 10,310 361 7.06% 911 32 7.08%
-------- -------- -------- -------
Total
interest-
bearing
liabilities $606,913 $12,242 4.07% $506,808 $ 8,541 3.40%
Non-interest
bearing
liabilities 69,761 67,775
Stockholders'
equity 60,846 56,202
-------- --------
Total
liabilities
& equity $737,520 $630,785
======== ========
Net interest
income/interest
rate spread $11,703 3.09% $10,452 3.32%
======= ==== ======= ====
Net yield on
earning assets 3.50% 3.70%
==== ====
(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.