GREENWOOD, S.C., Oct. 22, 2008 (GLOBE NEWSWIRE) -- Community Capital Corporation (Nasdaq:CPBK) reports operating results for the nine months and quarter ending September 30, 2008.
Net income for the three months ended September 30, 2008 decreased 26.89% to $1,196,000, or $0.27 per diluted share from $1,636,000, or $0.37 per diluted share for the same period in 2007. The company recorded provision for loan losses of $1.1 million during the third quarter of 2008 compared to $300,000 during the third quarter of 2007. Return on average assets for the quarter was 0.61% for 2008 compared to 0.84% for the same period in 2007. Return on average equity was 7.35% for the quarter ended September 30, 2008 compared to 10.35% for the same period in 2007.
Net income for the nine months ended September 30, 2008 decreased 52.44% to $2,404,000 from $5,055,000 for the same period in 2007. Diluted earnings per share for the nine month period ended September 30, 2008 decreased 52.63% to $0.54 from $1.14 for the nine months ended September 30, 2007. The company recorded provision for loan losses of $5.6 million during the first nine months of 2008 compared to $625,000 during the first nine months of 2007. Non-performing assets increased $25.7 million to $28.3 million at September 30, 2008 from $2.6 million at December 31, 2007. Return on average assets for the nine months was 0.41% for 2008 compared to 0.90% for the same period in 2007. Return on average equity for the nine months was 4.93% in 2008 compared to 10.99% for the same period in 2007.
Total assets increased 1.04% to $790,000,000 at September 30, 2008 from $781,857,000 as of September 30, 2007. Total loans increased $12,934,000 or 2.04% to $645,558,000 at September 30, 2008, compared to $632,624,000 at September 30, 2007. Total deposits decreased $11,771,000 or 2.21% to $520,671,000 at September 30, 2008 from $532,442,000 at September 30, 2007.
William G. Stevens, President/CEO of Community Capital Corporation, stated, "We are not satisfied with our overall operating results but our core banking operations did generate a $1.2 million net profit for the third quarter. We are pleased however to report that we do not own any Fannie Mae or Freddie Mac investments, nor do we have any sub-prime loans. We continue to make quality loans and our FDIC insured deposits grew by $21 million during the third quarter.
"During these difficult economic times, our strong capital positions continue to support our operations, and our ability to provide our shareholders a valuable return on investment via the quarterly dividend." The quarterly cash dividend of $0.15 per share is payable by December 5, 2008 to shareholders of record as of November 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 latest Quarterly Report on Form 10-Q.
Financial Highlights Three Three Nine Nine
(Dollars in thousands, Months Months Months Months
except per share data) Ended Ended Ended Ended
Sept. 30 Sept. 30 Sept. 30 Sept. 30
2008 2007 2008 2007
(Unaudited) (Unaudited)
Earnings Summary
Interest income $ 10,406 $ 12,695 $ 33,213 $ 36,386
Interest expense 4,411 6,565 14,592 18,807
--------- --------- --------- ---------
Net interest income 5,995 6,130 18,621 17,579
Provision for
loan losses 1,100 300 5,600 625
Non-interest income 1,851 1,756 5,525 5,011
Non-interest expense 5,140 5,252 15,545 14,729
--------- --------- --------- ---------
Income before taxes 1,606 2,334 3,001 7,236
Income tax expense 410 698 597 2,181
--------- --------- --------- ---------
Net income $ 1,196 $ 1,636 $ 2,404 $ 5,055
========= ========= ========= =========
Per Shares Ratios (1):
Basic earnings
per share $ 0.27 $ 0.37 $ 0.54 $ 1.16
Diluted earnings
per share $ 0.27 $ 0.37 $ 0.54 $ 1.14
Dividends declared
per share $ 0.15 $ 0.13 $ 0.45 $ 0.39
Book value per share $ 14.53 $ 14.35 $ 14.53 $ 14.35
Common Share Data (1):
Outstanding at
period end 4,467,605 4,413,361 4,467,605 4,413,361
Weighted average
outstanding 4,431,413 4,382,219 4,424,301 4,367,208
Diluted weighted
average outstanding 4,468,036 4,428,690 4,463,214 4,422,525
(1) Per share and share amounts reflect 15% stock dividend issued
during the fourth quarter of 2007
Balance Sheet Highlights
Average Balances:
Total assets $ 782,774 $ 769,632 $ 792,180 $ 748,819
Earning assets 725,664 705,597 731,062 684,795
Loans 645,425 621,477 651,796 603,810
Deposits 507,698 522,006 519,268 504,105
Interest bearing
deposits 440,077 456,929 453,921 439,875
Noninterest
bearing deposits 67,621 65,077 65,347 64,230
Other borrowings 192,898 166,959 189,746 165,923
Junior subordinated
debentures 10,310 10,310 10,310 10,310
Shareholders' equity 64,780 62,707 65,136 61,473
Performance Ratios:
Return on average assets 0.61% 0.84% 0.41% 0.90%
Return on average
shareholders' equity 7.35% 10.35% 4.93% 10.99%
Net interest margin 3.36% 3.52% 3.48% 3.51%
(fully tax equivalent
at 38%)
Efficiency ratio 64.41% 60.28% 63.58% 62.10%
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
Sept. 30 Sept. 30 Sept. 30 Sept. 30
2008 2007 2008 2007
(Unaudited) (Unaudited)
Asset Quality:
Nonperforming loans $ 26,725 $ 2,446 $ 26,725 $ 2,446
Other real estate 1,616 107 1,616 107
Total nonperforming
assets 28,341 2,553 28,341 2,553
Net charge-offs/
write-downs 123 130 1,506 225
Net charge-offs/
write-downs to
average loans 0.02% 0.02% 0.23% 0.04%
Allowance for
loan losses
to nonperforming loans 40.61% 269.83% 40.61% 269.83%
Nonperforming loans
to total loans 4.14% 0.39% 4.14% 0.39%
Nonperforming assets to
total assets 3.59% 0.33% 3.59% 0.33%
Allowance for loan
losses to period
end loans 1.68% 1.04% 1.68% 1.04%
Other Selected Ratios:
Average equity to
average assets 8.28% 8.15% 8.22% 8.21%
Average loans to
average deposits 127.13% 119.06% 125.52% 119.78%
Average loans to average
earning assets 88.94% 88.08% 89.16% 88.17%
Balance Sheet Data
(Dollars in thousands,
except per share data) Period Period Period
Ended Ended Ended
Sept. 30 Dec. 31 Sept. 30
2008 2007 2007
(Unaudited) (Unaudited)
Assets:
Cash and cash equivalents:
Cash and due from banks $ 16,969 $ 29,142 $ 22,185
Interest bearing deposit
accounts 279 267 238
--------- --------- ---------
Total cash and cash
equivalents 17,248 29,409 22,423
Investment securities:
Securities held-for-sale 73,055 71,542 72,622
Securities held-to-maturity 270 270 325
Nonmarketable equity securities 10,474 9,503 9,056
--------- --------- ---------
Total investment securities 83,799 81,315 82,003
Loans held for sale 232 631 920
Loans receivable 645,558 645,154 632,624
Allowance for loan losses (10,853) (6,759) (6,600)
Premises and equipment, net 17,479 16,729 16,148
Intangible assets 9,619 9,956 10,074
Other assets 26,918 24,163 24,265
--------- --------- ---------
Total assets $ 790,000 $ 800,598 $ 781,857
========= ========= =========
Liabilities and shareholders'
equity:
Deposits:
Noninterest bearing $ 68,563 $ 62,175 $ 66,912
Interest bearing 452,108 457,897 465,530
--------- --------- ---------
Total deposits 520,671 520,072 532,442
Federal funds purchased 20,211 47,705 26,149
Securities sold under agreements
to repurchase 13,467 14,561 16,902
FHLB advances 153,605 135,525 125,550
Junior subordinated debentures 10,310 10,310 10,310
Other liabilities 6,829 7,578 7,189
--------- --------- ---------
Total liabilities $ 725,093 $ 735,751 $ 718,542
========= ========= =========
Shareholders' equity:
Common stock: $1 par value; 10
million shares authorized 5,667 5,604 4,872
Nonvested restricted stock (549) (443) (578)
Capital surplus 62,410 61,600 48,476
Accumulated other comprehensive
income (89) 485 57
Retained earnings 14,883 15,016 27,715
Treasury stock, at cost (17,415) (17,415) (17,227)
--------- --------- ---------
Total shareholders' equity 64,907 64,847 63,315
--------- --------- ---------
Total liabilities and
shareholders' equity $ 790,000 $ 800,598 $ 781,857
========= ========= =========
Income Statement Data Three Three Nine Nine
(Dollars in thousands, Months Months Months Months
except per share data) Ended Ended Ended Ended
Sept. 30 Sept. 30 Sept. 30 Sept. 30
2008 2007 2008 2007
(Unaudited) (Unaudited)
Interest income:
Interest and fees on loans $ 9,471 $11,666 $30,324 $33,526
Interest on investment
securities 934 1,026 2,884 2,843
Interest on federal funds
sold and Interest-bearing
deposits 1 3 5 17
------- ------ ------ ------
Total interest income 10,406 12,695 33,213 36,386
Interest expense:
Interest on deposits 2,425 4,401 8,552 12,340
Interest on borrowings 1,986 2,164 6,040 6,467
------- ------ ------ ------
Total interest expense 4,411 6,565 14,592 18,807
Net interest income 5,995 6,130 18,621 17,579
Provision for loan losses 1,100 300 5,600 625
------- ------ ------ ------
Net interest income
after provision 4,895 5,830 13,021 16,954
Non-interest income:
Service charges on
deposit accounts 672 611 1,841 1,796
Gain on sale of loans held
for sale 315 341 918 919
Fees from brokerage services 34 76 127 181
Income from fiduciary
activities 442 396 1,398 1,142
Gain on sale of securities
held-for-sale -- -- 98 --
Gain on sale of premises
and equipment -- -- -- 15
Other operating income 388 332 1,143 958
------- ------ ------ ------
Total non-interest income 1,851 1,756 5,525 5,011
Non-interest expense:
Salaries and employee benefits 2,735 2,795 8,643 8,309
Net occupancy expense 340 284 996 832
Amortization of
intangible assets 112 118 337 353
Furniture and equipment expense 265 224 743 658
Loss on sale of securities
held-for-sale -- 417 -- 470
Other operating expenses 1,688 1,414 4,826 4,107
------- ------ ------ ------
Total non-interest expense 5,140 5,252 15,545 14,729
Income before taxes 1,606 2,334 3,001 7,236
Income tax expense 410 698 597 2,181
------- ------ ------ ------
Net income $ 1,196 $ 1,636 $ 2,404 $ 5,055
======= ======= ======= =======
(Dollars in Sept. 30, 2008 Dec. 31, 2007 Sept. 30, 2007
thousands) Balance Percent Balance Percent Balance Percent
Loans:
Commercial and
agricultural 42,531 6.59% $ 44,467 6.89% $ 42,482 6.71%
Real Estate -
construction 198,487 30.75% 167,180 25.91% 173,410 27.41%
Real Estate -
mortgage and
commercial 334,064 51.75% 364,667 56.53% 342,431 54.13%
Home equity 46,453 7.19% 42,628 6.61% 41,058 6.49%
Consumer -
Installment 22,622 3.50% 24,706 3.83% 31,696 5.01%
Other 1,401 0.22% 1,506 0.23% 1,547 0.25%
-------- ------- -------- ------- -------- -------
Total $645,558 100.00% $645,154 100.00% $632,624 100.00%
-------- ------- -------- ------- -------- -------
(Dollars in Sept. 30, 2008 Dec. 31, 2007 Sept. 30, 2007
thousands) Balance Percent Balance Percent Balance Percent
Deposits:
Noninterest
bearing
demand 68,563 13.17% $ 62,175 11.96% $ 66,912 12.57%
Interest
bearing
demand 63,991 12.29% 63,866 12.28% 68,988 12.96%
Money market
and savings 195,963 37.64% 215,795 41.49% 208,315 39.12%
Certificates
of deposit 192,154 36.90% 178,236 34.27% 188,227 35.35%
-------- ------- -------- ------- -------- -------
Total $520,671 100.00% $520,072 100.00% $532,442 100.00%
-------- ------- -------- ------- -------- -------
Wealth Management Group
Fiduciary and Related Services:
(Dollars in thousands, except number of accounts)
Sept. 30, 2008 Dec. 31, 2007 Sept. 30, 2007
Market value
of accounts $444,714 $475,818 $461,890
Market value
of
discretionary
accounts $184,042 $201,111 $201,371
Market value
of non-
discretionary
accounts $260,672 $274,707 $260,519
Total number
of accounts 1,304 1,183 1,111
Yield/Rate Analysis YTD
(Dollars in thousands)
Three Months Ended Three Months Ended
September 30, 2008 September 30, 2007
----------------------------------------------------------
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
----------------------------------------------------------
ASSETS
Loans(1)(3)$645,425 $ 9,481 5.84% $621,477 $ 11,655 7.44%
Securities,
taxable(2) 40,104 521 5.17% 46,785 608 5.16%
Securities,
nontaxable
(2)(3) 29,550 433 5.83% 28,046 426 6.03%
Non-
marketable
Equity
Securities 10,306 92 3.55% 9,056 137 6.00%
Fed funds
sold and
other
(incl
FHLB) 279 1 1.43% 233 3 5.11%
------------------ ------------------
Total
earning
assets $725,664 $ 10,528 5.77% $705,597 $ 12,829 7.21%
Non-earning
assets 57,110 64,035
-------- --------
Total
assets $782,774 $769,632
======== ========
LIABILITIES
AND
STOCK-
HOLDERS'
EQUITY
Transaction
accounts $214,021 $ 633 1.18% $230,260 $ 1,794 3.09%
Regular
savings
accounts 36,816 197 2.13% 37,995 265 2.77%
Certificates
of deposit 189,239 1,595 3.35% 188,675 2,343 4.93%
Other short
term
borrowings 43,037 244 2.26% 41,400 531 5.09%
FHLB
Advances 149,862 1,561 4.14% 125,558 1,449 4.58%
Junior
subordinate
debentures 10,310 181 6.98% 10,310 183 7.04%
------------------ ------------------
Total
interest-
bearing
liabil-
ities $643,285 $ 4,411 2.73% $634,198 $ 6,565 4.10%
Non-interest
bearing
liabilities 74,709 72,727
Stockholders'
equity 64,780 62,707
-------- --------
Total
liabil-
ities &
equity $782,774 $769,632
======== ========
Net interest
income/
interest
rate
spread $ 6,117 3.04% $ 6,264 3.11%
================== ==================
Net yield
on earning
assets 3.35% 3.52%
======== ========
Yield/Rate Analysis YTD
(Dollars in thousands)
Nine Months Ended Nine Months Ended
September 30, 2008 September 30, 2007
----------------------------------------------------------
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
----------------------------------------------------------
ASSETS
Loans
(1)(3) $651,796 $ 30,357 6.22% $603,810 $ 33,561 7.43%
Securities,
taxable(2) 39,781 1,544 5.18% 45,132 1,561 4.62%
Securities,
nontaxable
(2)(3) 29,375 1,299 5.91% 26,555 1,239 6.24%
Non-
marketable
Equity
Securities 9,829 373 5.07% 8,862 396 5.97%
Fed funds
sold and
other
(incl
FHLB) 279 5 2.39% 436 17 5.21%
------------------ ------------------
Total
earning
assets $731,060 $ 33,578 6.14% $684,795 $ 36,774 7.18%
Non-earning
assets 61,120 64,024
-------- --------
Total
assets $792,180 $748,819
======== ========
LIABILITIES
AND
STOCKHOLDERS'
EQUITY
Transaction
accounts $228,010 $ 2,516 1.47% $214,301 $ 4,792 2.99%
Regular
savings
accounts 36,313 638 2.35% 38,911 768 2.64%
Certificates
of deposit 189,597 5,398 3.80% 186,663 6,781 4.86%
Other short
term
borrowings 49,412 981 2.65% 44,076 1,699 5.15%
FHLB
Advances 140,334 4,518 4.30% 121,847 4,223 4.63%
Junior
subordinate
debentures 10,310 542 7.02% 10,310 544 7.05%
------------------ ----------------
Total
interest-
bearing
liabil-
ities $653,976 $ 14,593 2.98% $616,108 $ 18,807 4.08%
Non-interest
bearing
liabilities 73,068 71,238
Stockholders'
equity 65,136 61,473
-------- --------
Total
liabil-
ities &
equity $792,180 $748,819
======== ========
Net interest
income/
interest
rate
spread $ 18,985 3.15% $ 17,967 3.10%
================== ==================
Net yield
on earning
assets 3.47% 3.51%
======== ========
(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.