GREENWOOD, S.C., April 16, 2008 (PRIME NEWSWIRE) -- Community Capital Corporation (Nasdaq:CPBK) reports operating results for the three months ending March 31, 2008. Net income for the three months ended March 31, 2008 decreased 52% to $781,000, or $0.18 per diluted share from $1.6 million, or $0.37 per diluted share for the same period in 2007. The company recorded provision for loan losses of $2.0 million during the first quarter of 2008 compared to $200,000 during the first quarter of 2007. Non-performing assets increased $15.2 million to $17.7 million at March 31, 2008 from $2.4 million at December 31, 2007, primarily as a result of deterioration in three lending relationships totaling $13.1 million. The addition of these loans to nonaccrual status reversed approximately $222,000 in interest accruals.
William G. Stevens, President and CEO, stated, "While we are disappointed in the level of write-downs, nonperforming loans and the resulting impact on short term earnings, we are confident that we have the necessary processes in place to identify and manage problem loans. Our management team has been and will continue to be aggressive in working through these issues. However, the small number of loans involved is evidence that the issues are not systemic. Furthermore, we continue to manage our net interest margin within a tight range provided the very difficult interest rate environment that we have been in recently. Because of the strength of our underlying fundamentals, including our designation of being "well capitalized" as defined by regulatory agencies, we are not anticipating any negative impact to the level of our cash dividend and the resulting strong yield. As a result, the Board of Directors voted to maintain the quarterly cash dividend of $0.15 per share."
The cash dividend of $0.15 per share is payable by June 6, 2008 to shareholders of record as of May 23, 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.
Return on average assets for the first quarter was 0.39% for 2008 compared to 0.91% for 2007. Return on average equity was 4.81% compared to 11.01% in 2007. Total assets increased 9% to $811 million at March 31, 2008 from $741 million as of March 31, 2007. Total loans increased $70 million or 12% to $665 million at March 31, 2008, compared to $595 million at March 31, 2007. Total deposits increased $29 million or 6% to $521 million at March 31, 2008 from $492 million at March 31, 2007.
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 Annual Report on Form 10-K for the year ended December 31, 2007.
Financial Highlights Three Three Three
(Dollars in thousands, except per Months Months Months
share data) Ended Ended Ended
March 31 December 31 March 31
2008 2007 2007
Earnings Summary (Unaudited) (Unaudited) (Unaudited)
Interest income $ 11,862 $ 12,746 $ 11,475
Interest expense 5,659 6,422 5,927
---------- ---------- ----------
Net interest income 6,203 6,324 5,548
Provision for loan losses 2,000 400 200
Non-interest income 1,858 1,867 1,608
Non-interest expense 5,076 4,999 4,652
---------- ---------- ----------
Income before taxes 985 2,792 2,304
Income tax expense 204 958 674
---------- ---------- ----------
Net income $ 781 $ 1,834 $ 1,630
---------- ---------- ----------
Per Shares Ratios (1):
Basic earnings per share $ 0.18 $ 0.42 $ 0.37
Diluted earnings per share $ 0.18 $ 0.41 $ 0.37
Dividends declared per share $ 0.15 $ 0.15 $ 0.13
Book value per share $ 14.66 $ 14.72 $ 13.72
Common Share Data (1):
Outstanding at period end 4,468,235 4,404,100 4,415,201
Weighted average outstanding 4,415,206 4,383,785 4,343,176
Diluted weighted average
outstanding 4,454,478 4,422,575 4,408,384
(1) Per share and shares amounts reflect 15% stock dividend issued
during the fourth quarter of 2007
Balance Sheet Highlights
Average Balances:
Total assets $ 801,687 $ 782,735 $ 724,012
Earning assets 736,327 719,104 660,546
Loans 656,782 637,756 582,748
Deposits 531,646 520,903 488,672
Interest bearing deposits 469,977 455,644 425,242
Noninterest bearing deposits 61,669 65,259 63,430
Other borrowings 185,942 179,720 158,927
Junior subordinated debentures 10,310 10,310 10,310
Shareholders' equity 65,223 64,008 60,054
Performance Ratios:
Return on average assets 0.39% 0.93% 0.91%
Return on average shareholders'
equity 4.81% 11.37% 11.01%
Net interest margin (fully tax
equivalent at 38%) 3.46% 3.56% 3.49%
Efficiency ratio 62.67% 60.02% 63.58%
Asset Quality:
Nonperforming loans $ 17,653 $ 2,424 $ 1,840
Other real estate 153 173 107
Total nonperforming assets 17,806 2,597 1,947
Net charge-offs/write-downs 1,276 240 38
Net charge-offs/write-downs to
average loans 0.19% 0.04% 0.01%
Allowance for loan losses to
nonperforming loans 42.40% 278.84% 345.76%
Nonperforming loans to total
loans 2.65% 0.38% 0.31%
Nonperforming assets to total
assets 2.20% 0.32% 0.26%
Allowance for loan losses to
period end loans 1.13% 1.05% 1.07%
Other Selected Ratios:
Average equity to average assets 8.14% 8.18% 8.29%
Average loans to average deposits 123.54% 122.43% 119.25%
Average loans to average earning
assets 89.20% 88.69% 88.22%
Balance Sheet Data
(Dollars in thousands, except
per share data) Period Ended Period Ended Period Ended
March 31 December 31 March 31
2008 2007 2007
(Unaudited) (Unaudited)
Assets:
Cash and cash equivalents:
Cash and due from banks $ 20,710 $ 29,142 $ 23,954
Interest bearing deposit
accounts 196 267 282
--------- --------- ---------
Total cash and cash
equivalents 20,906 29,409 24,236
Investment securities:
Securities held-for-sale 70,018 71,542 68,145
Securities held-to-maturity 270 270 325
Nonmarketable equity
securities 9,660 9,503 9,056
--------- --------- ---------
Total investment securities 79,948 81,315 77,526
Loans held for sale 1,351 631 1,961
Loans receivable 664,903 645,154 594,786
Allowance for loan losses (7,484) (6,759) (6,362)
Premises and equipment, net 17,298 16,729 15,374
Intangible assets 9,842 9,956 10,307
Other assets 23,913 24,163 22,898
--------- --------- ---------
Total assets $ 810,677 $ 800,598 $ 740,726
--------- --------- ---------
Liabilities and shareholders'
equity:
Deposits:
Noninterest bearing $ 65,506 $ 62,175 $ 68,076
Interest bearing 455,007 457,897 423,883
--------- --------- ---------
Total deposits 520,513 520,072 491,959
Federal funds purchased 56,251 47,705 25,536
Securities sold under
agreements to repurchase 15,444 14,561 20,645
FHLB advances 135,500 135,525 125,600
Junior subordinated debentures 10,310 10,310 10,310
Other liabilities 7,151 7,578 6,106
--------- --------- ---------
Total liabilities $ 745,169 $ 735,751 $ 680,156
Shareholders' equity:
Common stock: $1 par value; 10
million shares authorized 5,668 5,604 4,869
Nonvested restricted stock (763) (443) (862)
Capital surplus 62,425 61,600 48,432
Accumulated other comprehensive
income (expense) 995 485 (190)
Retained earnings 14,598 15,016 25,443
Treasury stock, at cost (17,415) (17,415) (17,122)
--------- --------- ---------
Total shareholders' equity 65,508 64,847 60,570
--------- --------- ---------
Total liabilities and
shareholders' equity $ 810,677 $ 800,598 $ 740,726
--------- --------- ---------
Income Statement Data
(Dollars in thousands, except
per share data) Three Months Three Months Three Months
Ended Ended Ended
March 31 December 31 March 31
2008 2007 2007
(Unaudited) (Unaudited) (Unaudited)
Interest income:
Interest and fees on loans $ 10,873 $ 11,721 $ 10,592
Interest on investment
securities 987 1,021 872
Interest on federal funds sold
and interest-bearing deposits 2 4 11
---------- ---------- ----------
Total interest income 11,862 12,746 11,475
Interest expense:
Interest on deposits 3,553 4,151 3,846
Interest on borrowings 2,106 2,271 2,081
---------- ---------- ----------
Total interest expense 5,659 6,422 5,927
Net interest income 6,203 6,324 5,548
Provision for loan losses 2,000 400 200
---------- ---------- ----------
Net interest income after
provision 4,203 5,924 5,348
Non-interest income:
Service charges on deposit
accounts 586 629 583
Gain on sale of loans held for
sale 274 285 258
Commissions from sales of
mutual funds 46 80 57
Income from fiduciary
activities 469 448 381
Gain on sale of securities
held-for-sale 97 1 --
Gain on sale of premises and
equipment -- -- 15
Other operating income 386 424 314
---------- ---------- ----------
Total non-interest income 1,858 1,867 1,608
Non-interest expense:
Salaries and employee benefits 2,915 2,778 2,744
Net occupancy expense 329 330 282
Amortization of intangible
assets 115 117 119
Furniture and equipment expense 235 230 209
Loss on sale of securities
held-for-sale -- -- 53
Other operating expenses 1,482 1,544 1,245
---------- ---------- ----------
Total non-interest expense 5,076 4,999 4,652
Income before taxes 985 2,792 2,304
Income tax expense 204 958 674
---------- ---------- ----------
Net income $ 781 $ 1,834 $ 1,630
---------- ---------- ----------
March 31, 2008 December 31, 2007 March 31, 2007
Balance Percent Balance Percent Balance Percent
Loans:
Commercial
and
agricultural $ 44,017 6.62% $ 44,467 6.89% $ 44,750 7.52%
Real Estate -
construction 168,167 25.29% 167,180 25.91% 168,800 28.38%
Real Estate -
mortgage and 384,870 57.88% 364,668 56.53% 300,54 50.53%
commercial
Home equity 42,486 6.39% 42,628 6.61% 40,952 6.89%
Consumer -
Installment 23,925 3.60% 24,706 3.83% 38,180 6.42%
Other 1,438 0.22% 1,505 0.23% 1,555 0.26%
-------- -------- -------- -------- -------- --------
Total $664,903 100.00% $645,154 100.00% $594,786 100.00%
-------- -------- -------- -------- -------- --------
March 31, 2008 December 31, 2007 March 31, 2007
Balance Percent Balance Percent Balance Percent
Deposits:
Noninterest
bearing
demand $ 65,506 12.58% $ 62,175 11.96% $ 68,076 13.84%
Interest
bearing
demand 64,070 12.31% 64,175 12.34% 68,897 14.00%
Money market
and savings 209,761 40.30% 215,486 41.43% 175,509 35.68%
Certificates
of deposit 181,176 34.81% 178,236 34.27% 179,477 36.48%
-------- -------- -------- -------- -------- --------
Total $520,513 100.00% $520,072 100.00% $491,959 100.00%
-------- -------- -------- -------- -------- --------
Wealth Management Group
Fiduciary and Related Services:
(Dollars in thousands, except
number of accounts) March 31, December 31, March 31,
2008 2007 2007
Market value of accounts $ 463,204 $ 475,818 $ 378,302
Market value of discretionary
accounts $ 193,061 $ 201,111 $ 165,141
Market value of non-discretionary
accounts $ 270,143 $ 274,707 $ 213,161
Total number of accounts 1,247 1,183 1,056
Yield/Rate Analysis YTD Three Months Ended
March 31, 2008
-------------------------
Average Yield/
(Dollars in thousands) Balance Interest Rate
-------------------------
ASSETS
Loans(1)(3) $656,782 $ 10,885 6.67%
Securities, taxable(2) 40,424 524 5.21%
Securities, nontaxable(2)(3) 29,313 432 5.93%
Nonmarketable Equity Securities 9,513 142 6.00%
Fed funds sold and other (incl. FHLB) 295 2 2.73%
-------- --------
Total earning assets 736,327 $ 11,985 6.55%
Non-earning assets 65,360
--------
Total assets $801,687
========
LIABILITIES AND STOCKHOLDERS' EQUITY
Transaction accounts $239,738 $ 1,174 1.97%
Regular savings accounts 35,832 236 2.65%
Certificates of deposit 194,407 2,140 4.43%
Other short term borrowings 50,434 431 3.44%
FHLB Advances 135,509 1,497 4.44%
Junior subordinate debentures 10,310 181 7.06%
-------- --------
Total interest-bearing liabilities 666,230 $ 5,659 3.42%
Non-interest bearing liabilities 70,234
Stockholders' equity 65,223
--------
Total liabilities & equity $801,687
========
Net interest income/
interest rate spread $ 6,326 3.13%
======== =====
Net yield on earning assets 3.46%
=====
Yield/Rate Analysis Three Months Ended
December 31, 2007
-------------------------
Average Yield/
(Dollars in thousands) Balance Interest Rate
-------------------------
ASSETS
Loans(1)(3) $637,756 $ 11,735 7.30%
Securities, taxable(2) 42,401 558 5.22%
Securities, nontaxable(2)(3) 29,448 447 6.02%
Nonmarketable Equity Securities 9,194 138 5.95%
Fed funds sold and other (incl. FHLB) 305 4 5.20%
------------------
Total earning assets $719,104 $ 12,882 7.11%
Non-earning assets 63,631
--------
Total assets $782,735
========
LIABILITIES AND STOCKHOLDERS' EQUITY
Transaction accounts $233,120 $ 1,612 2.74%
Regular savings accounts 36,760 261 2.82%
Certificates of deposit 185,764 2,277 4.86%
Other short term borrowings 51,067 602 4.68%
FHLB Advances 128,653 1,486 4.58%
Junior subordinate debt 10,310 184 7.08%
------------------
Total interest-bearing liabilities 645,674 $ 6,422 3.95%
Non-interest bearing liabilities 73,053
Stockholders' equity 64,008
--------
Total liabilities & equity $782,735
========
Net interest income/interest rate spread $ 6,460 3.16%
===============
Net yield on earning assets 3.56%
=====
Yield/Rate Analysis YTD Three Months Ended
March 31, 2007
-------------------------
Average Yield/
(Dollars in thousands) Balance Interest Rate
-------------------------
ASSETS
Loans(1)(3) $582,748 $ 10,604 7.38%
Securities, taxable(2) 41,931 449 4.34%
Securities, nontaxable(2)(3) 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%
=====
(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.