GREENWOOD, S.C., Jan. 22, 2008 (PRIME NEWSWIRE) -- Community Capital Corporation (Nasdaq:CPBK) reports operating results for the twelve months and quarter ending December 31, 2007.
Net income for the three months ended December 31, 2007 increased 19% to $1,834,000, or $0.41 per diluted share from $1,544,000, or $0.35 per diluted share for the same period in 2006. Return on average assets for the quarter was 0.93% for 2007 compared to 0.87% for 2006. Return on average equity was 11.37% compared to 10.41% in 2006.
Net income for the twelve months ended December 31, 2007 increased 20% to $6,888,000 from $5,759,000 for the same period in 2006. Diluted earnings per share for the twelve month period ended December 31, 2007 increased 19% to $1.56 from $1.31 for the twelve months ended December 31, 2006. Core net income for the twelve months ended December 31, 2007 increased 24% to $7,164,000 or $1.62 per diluted share, from $5,759,000 or $1.31 per diluted share for the same period in 2006(1). Return on average assets for the twelve months was 0.91% for 2007 compared to 0.87% for 2006. Return on average equity was 11.09% in 2007 compared to 10.05% in 2006. Core return on average assets for the twelve months was 0.95% compared to 0.87% for 2006, and core return on average equity for the twelve months was 11.53% for 2007 compared to 9.27% in 2006(1).
Total assets increased 12% to $800,598,000 at December 31, 2007 from $713,244,000 as of December 31, 2006. Total loans increased $71,515,000 or 12% to $645,154,000 at December 31, 2007, compared to $573,639,000 at December 31, 2006. Total deposits increased $33,116,000 or 7% to $520,072,000 at December 31, 2007 from $486,956,000 at December 31, 2006.
During the fourth quarter, the company paid a 15% stock dividend and a $0.15 per share cash dividend. All per share amounts reflect the 15% stock dividend paid during the fourth quarter of 2007.
The company also declared a quarterly cash dividend of $0.15 per share, which is payable by March 7, 2008 to shareholders of record on February 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 Quarterly Report on Form 10-Q for the quarter ended September 30, 2007.
Financial Highlights Three Months Twelve Months
(Dollars in thousands, Ended Ended
except per share data) December 31 December 31
--------------------- ---------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Earnings Summary (Unaudited) (Unaudited)
Interest income $12,746 $11,248 $49,132 $40,679
Interest expense 6,422 5,796 25,229 19,625
--------- --------- --------- ---------
Net interest income 6,324 5,452 23,903 21,054
Provision for loan
losses 400 340 1,025 1,140
Non-interest income 1,867 1,629 6,877 6,028
Non-interest expense 4,999 4,620 19,728 18,165
--------- --------- --------- ---------
Income before taxes 2,792 2,121 10,027 7,777
Income tax expense 958 577 3,139 2,018
--------- --------- --------- ---------
Net income $1,834 $1,544 $6,888 $5,759
--------- --------- --------- ---------
Per Shares Ratios (1):
Basic earnings per share $0.42 $0.36 $1.58 $1.34
Diluted earnings per
share $0.41 $0.35 $1.56 $1.31
Dividends declared per
share $0.15 $0.15 $0.60 $0.60
Book value per share $14.72 $13.52 $14.72 $13.52
(1) Per share amounts reflect 15% stock dividend issued during
the fourth quarter of 2007.
Common Share Data:
Outstanding at period
end 4,404,100 3,788,505 4,404,100 3,788,505
Weighted average
outstanding 4,383,785 4,321,275 4,371,345 4,299,359
Diluted weighted
average outstanding 4,422,575 4,385,757 4,422,312 4,383,497
Balance Sheet Highlights
Average Balances:
Total assets 782,735 704,790 757,499 661,528
Earning assets 719,104 642,929 693,443 599,900
Loans 637,756 564,201 612,366 522,521
Deposits 520,903 486,291 508,339 470,890
Interest bearing
deposits 455,644 422,504 443,850 407,819
Noninterest bearing
deposits 65,259 63,787 64,489 63,071
Other borrowings 179,720 143,529 169,401 121,717
Junior subordinated
debentures 10,310 10,310 10,310 5,649
Shareholders' equity 64,008 58,797 62,112 57,297
Performance Ratios:
Return on average assets 0.93% 0.87% 0.91% 0.87%
Return on average
shareholders' equity 11.37% 10.41% 11.09% 10.05%
Net interest margin
(fully tax equivalent
at 38%) 3.56% 3.44% 3.52% 3.59%
Efficiency ratio 60.02% 63.17% 61.54% 65.61%
Asset Quality:
Nonperforming loans 2,424 1,716 2,424 1,716
Other real estate 173 107 173 107
Total nonperforming
assets 2,597 1,823 2,597 1,823
Net charge-offs 240 289 466 1,263
Net charge-offs to
average loans 0.04% 0.05% 0.08% 0.24%
Allowance for loan
losses to nonperforming
loans 278.84% 361.31% 278.84% 361.31%
Nonperforming loans to
total loans 0.38% 0.30% 0.38% 0.30%
Nonperforming assets to
total assets 0.32% 0.26% 0.32% 0.26%
Allowance for loan
losses to period
end loans 1.05% 1.08% 1.05% 1.08%
Other Selected Ratios:
Average equity to average
assets 8.18% 8.34% 8.20% 8.66%
Average loans to average
deposits 122.43% 116.02% 120.46% 110.96%
Average loans to average
earning assets 88.69% 87.75% 88.31% 87.10%
Balance Sheet Data
(Dollars in thousands, except per share data)
December 31 December 31
2007 2006
(Unaudited)
Assets:
Cash and cash equivalents:
Cash and due from banks $ 29,142 $ 22,167
Interest bearing deposit accounts 267 307
--------- ---------
Total cash and cash equivalents 29,409 22,474
Investment securities:
Securities held-for-sale 71,542 65,496
Securities held-to-maturity 270 380
Nonmarketable equity securities 9,503 8,073
--------- ---------
Total investment securities 81,315 73,949
Loans held for sale 631 554
Loans receivable 645,154 573,639
Allowance for loan losses (6,759) (6,200)
Premises and equipment, net 16,729 15,429
Intangible assets 9,956 10,427
Other assets 24,163 22,972
--------- ---------
Total assets $ 800,598 $ 713,244
--------- ---------
Liabilities and shareholders' equity:
Deposits:
Noninterest bearing $ 62,175 $ 63,733
Interest bearing 457,897 423,223
--------- ---------
Total deposits 520,072 486,956
Federal funds purchased 47,705 26,953
Securities sold under agreements
to repurchase 14,561 18,329
FHLB advances 135,525 105,625
Junior subordinated debentures 10,310 10,310
Other liabilities 7,578 6,145
--------- ---------
Total liabilities $ 735,751 $ 654,318
--------- ---------
Shareholders' equity:
Common stock: $1 par value; 10
million shares authorized 5,604 4,818
Nonvested restricted stock (443) (558)
Capital surplus 61,600 47,671
Accumulated other
comprehensive income 485 (269)
Retained earnings 15,016 24,386
Treasury stock, at cost (17,415) (17,122)
--------- ---------
Total shareholders' equity 64,847 58,926
--------- ---------
Total liabilities and
shareholders' equity $ 800,598 $ 713,244
--------- ---------
Liabilities and shareholders' equity:
Deposits:
Noninterest bearing $ 62,175 $ 63,733
Interest bearing 457,897 423,223
-------- --------
Total deposits 520,072 486,956
Federal funds purchased 47,705 26,953
Securities sold under agreements to repurchase 14,561 18,329
FHLB advances 135,525 105,625
Junior subordinated debentures 10,310 10,310
Other liabilities 7,578 6,145
-------- --------
Total liabilities $735,751 $654,318
-------- --------
Shareholders' equity:
Common stock: $1 par value; 10 million
shares authorized 5,604 4,818
Nonvested restricted stock (443) (558)
Capital surplus 61,600 47,671
Accumulated other comprehensive income 485 (269)
Retained earnings 15,016 24,386
Treasury stock, at cost (17,415) (17,122)
-------- --------
Total shareholders' equity 64,847 58,926
-------- --------
Total liabilities and shareholders' equity $800,598 $713,244
-------- --------
Income Statement Data Three Months Ended Twelve Months Ended
(Dollars in thousands) December 31 December 31
------------------ ------------------
2007 2006 2007 2006
------- ------- ------- -------
(Unaudited)
Interest income: -----------------------------
Interest and fees
on loans $11,721 $10,366 $45,247 $37,277
Interest on investment
securities 1,021 880 3,864 3,388
Interest on federal
funds sold and interest-
bearing deposits 4 2 21 14
------- ------- ------- -------
Total interest income 12,746 11,248 49,132 40,679
Interest expense:
Interest on deposits 4,151 3,823 16,491 13,491
Interest on borrowings 2,271 1,973 8,738 6,134
------- ------- ------- -------
Total interest expense 6,422 5,796 25,229 19,625
Net interest income 6,324 5,452 23,903 21,054
Provision for loan losses 400 340 1,025 1,140
------- ------- ------- -------
Net interest income
after provision 5,924 5,112 22,878 19,914
Non-interest income:
Service charges on
deposit accounts 629 666 2,425 2,627
Gain on sale of loans
held for sale 285 234 1,204 760
Fees from brokerage
services 80 31 261 245
Income from fiduciary
activities 448 330 1,590 1,177
Gain on sale of
securities held-for-sale 1 -- -- --
Gain on sale of premises
and equipment -- -- 15 2
Other operating income 424 368 1,380 1,217
------- ------- ------- -------
Total non-interest income 1,867 1,669 6,875 6,028
Non-interest expense:
Salaries and employee
benefits 2,778 2,756 11,087 10,687
Net occupancy expense 330 278 1,162 1,113
Amortization of
intangible assets 117 123 470 492
Furniture and equipment
expense 230 205 888 838
Loss on sale of securities
held-for-sale -- 67 469 61
Other operating expenses 1,544 1,191 5,650 4,974
------- ------- ------- -------
Total non-interest
expense 4,999 4,620 19,726 18,165
Income before taxes 2,792 2,121 10,027 7,777
Income tax expense 958 577 3,139 2,018
------- ------- ------- -------
Net income $ 1,834 $ 1,544 $ 6,888 $ 5,759
------- ------- ------- -------
Loans by Type:
(Dollars in thousands) December 31, 2007 December 31, 2006
Balance Percent Balance Percent
Commercial and agricultural $ 44,467 6.89% $ 44,910 7.83%
Real Estate - construction 167,180 25.91% 142,694 24.88%
Real Estate - mortgage and
commercial 364,668 56.53% 321,440 56.03%
Home equity 42,628 6.61% 40,805 7.11%
Consumer - Installment 24,706 3.83% 22,092 3.85%
Other 1,505 0.23% 1,698 0.30%
-------- ------- -------- -------
Total $645,154 100.00% $573,639 100.00%
-------- ------- -------- -------
Deposits by Type: December 31, 2007 December 31, 2006
(Dollars in thousands) Balance Percent Balance Percent
Noninterest bearing demand $ 62,175 11.96% $ 63,733 13.09%
Interest bearing demand 64,175 12.34% 64,743 13.30%
Money market and savings 215,486 41.43% 168,592 34.62%
Certificates of deposit 178,236 34.27% 189,888 38.99%
-------- ------- -------- -------
Total $520,072 100.00% $486,956 100.00%
-------- ------- -------- -------
Wealth Management Group
Fiduciary and Related
Services:
(Dollars in thousands,
except number of accounts) December 31, 2007 December 31, 2006
Market value of accounts $475,818 $370,362
Market value of
discretionary accounts $201,111 $154,168
Market value of non-
discretionary accounts $274,707 $216,194
Total number of accounts 1,183 975
Yield/Rate Analysis YTD
(Dollars in thousands)
Three Months Ended Three Months Ended
December 31, 2007 December 31, 2006
----------------------- -----------------------
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
------- -------- ---- ------- -------- ----
ASSETS
Loans(1)(3) $637,756 $11,735 7.30% $564,201 $10,375 7.30%
Securities,
taxable(2) 42,401 558 5.22% 43,708 464 4.21%
Securities,
nontaxable(2)(3) 29,448 447 6.02% 27,278 414 6.02%
Nonmarketable Equity
Securities 9,194 138 5.95% 7,590 115 6.01%
Fed funds sold
and other (incl.
FHLB) 305 4 5.20% 152 2 5.22%
----------------- -----------------
Total earning
assets $719,104 $12,882 7.11% $642,929 $11,370 7.02%
Non-earning assets 63,631 61,861
-------- --------
Total assets $782,735 $704,790
======== ========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Transaction
accounts $233,120 $ 1,612 2.74% $193,648 $ 1,377 2.82%
Regular savings
accounts 36,760 261 2.82% 39,022 237 2.41%
Certificates of
deposit 185,764 2,277 4.86% 189,834 2,209 4.62%
Other short term
borrowings 51,067 602 4.68% 48,641 649 5.29%
FHLB Advances 128,653 1,486 4.58% 94,889 1,140 4.77%
Junior subordinate
debentures 10,310 184 7.08% 10,310 184 7.08%
----------------- -----------------
Total interest-
bearing
liabilities $645,674 $ 6,422 3.95% $576,344 $ 5,796 3.99%
Non-interest bearing
liabilities 73,053 69,649
Stockholders' equity 64,008 58,797
-------- --------
Total liabilities
& equity $782,735 $704,790
======== ========
Net interest income/
interest rate
spread $ 6,460 3.16% $ 5,574 3.03%
============= =============
Net yield on earning
assets 3.56% 3.44%
==== ====
Yield/Rate Analysis YTD
(Dollars in thousands)
Twelve Months Ended Twelve Months Ended
December 31, 2007 December 31, 2006
----------------------- -----------------------
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
-------- -------- ---- -------- -------- ----
ASSETS
Loans(1)(3) $612,366 $45,296 7.40% $522,521 $37,309 7.14%
Securities,
taxable(2) 44,444 2,119 4.77% 43,211 1,796 4.16%
Securities,
nontaxable(2)(3) 27,285 1,671 6.12% 27,440 1,682 6.13%
Nonmarketable Equity
Securities 8,946 534 5.97% 6,478 373 5.76%
Fed funds sold and
other (incl. FHLB) 402 21 5.22% 250 14 5.60%
Total earning
assets $693,443 $49,641 7.16% $599,900 $41,174 6.86%
Non-earning assets 64,056 61,628
-------- -------
Total assets $757,499 $661,528
======== ========
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Transaction
accounts $219,044 $ 6,404 2.92% $181,060 $ 4,779 2.64%
Regular savings
accounts 38,369 1,029 2.68% 38,868 802 2.06%
Certificates of
deposit 186,437 9,058 4.86% 187,891 7,910 4.21%
Other short term
borrowings 45,839 2,301 5.02% 45,282 2,260 4.99%
FHLB Advances 123,562 5,709 4.62% 76,435 3,479 4.55%
Junior subordinate
debentures 10,310 728 7.06% 5,649 395 6.99%
-------- ------- -------- -------
Total interest-
bearing
liabilities $623,561 $25,229 4.05% $535,185 $19,625 3.67%
Non-interest bearing
liabilities 71,826 69,046
Stockholders' equity 62,112 57,297
-------- --------
Total liabilities
& equity $757,499 $661,528
======== ========
Net interest income/
interest rate
spread $24,412 3.11% $21,549 3.20%
======= ==== ======= ====
Net yield on earning
assets 3.52% 3.59%
==== ====
(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.
Footnote 1
Core Earnings Reconciliation
(Dollars in thousands, except per share data)
Twelve Months Ended
December 31
2007 2006
------- -------
GAAP Net income $ 6,888 $ 5,759
Loss on investment portfolio repositioning 417 --
Tax adjustment on loss on investment
portfolio repositioning (141) --
------- -------
Core net income $ 7,164 $ 5,759
------- -------
Core basic earnings per share (1) $ 1.64 $ 1.34
Core diluted earnings per share (1) $ 1.62 $ 1.31
Core return on average assets 0.95% 0.87%
Core return on average equity 11.53% 9.27%
(1) Per share amounts reflect 15% stock dividend issued during the
fourth quarter of 2007.