GREENWOOD, S.C., Jan. 28, 2009 (GLOBE NEWSWIRE) -- Community Capital Corporation (Nasdaq:CPBK) reports operating results for the twelve months and quarter ending December 31, 2008.
Net income for the three months ended December 31, 2008 decreased 99.78% to $4,000, or $0.001 per diluted share from $1,834,000, or $0.41 per diluted share for the same period in 2007. The company recorded provision for loan losses of $3.70 million during the fourth quarter of 2008 compared to $400,000 during the fourth quarter of 2007. Return on average assets for the quarter was 0.00% for 2008 compared to 0.93% for the same period in 2007. Return on average equity was 0.03% for the quarter ended December 31, 2008 compared to 11.37% for the same period in 2007.
Net income for the twelve months ended December 31, 2008 decreased 65.03% to $2,409,000 from $6,888,000 for the same period in 2007. Diluted earnings per share for the twelve month period ended December 31, 2008 decreased 65.38% to $0.54 from $1.56 for the twelve months ended December 31, 2007. The company recorded provision for loan losses of $9.30 million during 2008 compared to $1.03 million for the same period in 2007. Non-performing assets increased $30.05 million to $32.65 million at December 31, 2008 from $2.60 million at December 31, 2007. Return on average assets for the twelve months was 0.30% for 2008 compared to 0.91% for the same period in 2007. Return on average equity for the twelve months was 3.69% in 2008 compared to 11.09% for the same period in 2007.
Total assets decreased 1.25% to $790,600,000 at December 31, 2008 from $800,598,000 as of December 31, 2007. Total loans decreased $3,417,000 or 0.53% to $641,737,000 at December 31, 2008, compared to $645,154,000 at December 31, 2007. Total deposits decreased $6,471,000 or 1.24% to $513,601,000 at December 31, 2008 from $520,072,000 at December 31, 2007. Total shareholders equity increased to $64,957,000 at December 31, 2008 from $64,847,000 at December 31, 2007.
William G. Stevens, President/CEO of Community Capital Corporation, stated, "While we are disappointed in the overall financial performance of Community Capital Corporation during 2008, we continue to be profitable and well capitalized according to regulatory definitions. Our profitability and capital position allow us to continue paying a cash dividend of $0.15 per share, as announced on January 21, 2009. The cash dividend will be paid on March 6, 2009 to holders of record on February 20, 2009.
"2008 was the most challenging and difficult year that I have experienced during my forty year banking career. Even though the banking environment was chaotic during 2008, we were successful in improving our core bank as we grew non-interest income and maintained an excellent net interest margin of 3.48%. While the consensus of economists is that 2009 will be equally challenging for the U.S. economy and especially for the banking industry, we will continue to focus on the basics of community banking. Furthermore, our management team will proactively deal with troubled real estate assets by working with borrowers who desire alternatives to foreclosure. However, when we take possession of real estate collateral, we will aggressively manage the process and dispose of it as expeditiously and efficiently as possible."
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 (Dollars in Three Months Three Months Twelve Months Twelve Months thousands, Ended Ended Ended Ended except per December 31 December 31 December 31 December 31 share data) 2008 2007 2008 2007 Earnings (Unaudited) (Unaudited) (Unaudited) Summary Interest income $ 10,380 $ 12,746 $ 43,594 $ 49,132 Interest expense 4,065 6,422 18,656 25,229 --------- --------- --------- --------- Net interest income 6,315 6,324 24,938 23,903 Provision for loan losses 3,700 400 9,300 1,025 Non-interest income 1,722 1,867 7,247 6,877 Non-interest expense 4,646 4,999 20,192 19,728 --------- --------- --------- --------- Income before taxes (309) 2,792 2,693 10,027 Income tax expense (313) 958 284 3,139 --------- --------- --------- --------- Net income $ 4 $ 1,834 $ 2,409 $ 6,888 --------- --------- --------- --------- Per Shares Ratios (1): Basic earnings per share $ 0.001 $ 0.42 $ 0.54 $ 1.58 Diluted earnings per share $ 0.001 $ 0.41 $ 0.54 $ 1.56 Dividends declared per share $ 0.15 $ 0.15 $ 0.60 $ 0.60 Book value per share $ 14.54 $ 14.72 $ 14.54 $ 14.72 Common Share Data (1): Outstanding at period end 4,467,290 4,404,100 4,467,290 4,404,100 Weighted average outstanding 4,436,549 4,383,785 4,427,380 4,371,345 Diluted weighted average outstanding 4,467,605 4,422,575 4,464,263 4,422,312 (1) Per share and share amounts reflect 15% stock dividend issued during the fourth quarter of 2007. Balance Sheet Highlights Average Balances: Total assets $ 787,243 $ 782,735 $ 790,939 $ 757,499 Earning assets 730,659 719,104 730,958 693,443 Loans 642,478 637,756 649,454 612,366 Deposits 522,895 520,903 520,179 508,339 Interest bearing deposits 448,141 455,644 452,468 443,850 Noninterest bearing deposits 74,754 65,259 67,711 64,489 Other borrowings 180,997 179,720 187,546 169,401 Junior subordin- ated debentures 10,310 10,310 10,310 10,310 Shareholders' equity 65,633 64,008 65,261 62,112 Performance Ratios: Return on average assets 0.00% 0.93% 0.30% 0.91% Return on average shareholders' equity 0.03% 11.37% 3.69% 11.09% Net interest margin (fully tax equivalent at 38%) 3.51% 3.56% 3.48% 3.52% Efficiency ratio 56.93% 60.02% 61.91% 61.54% Three Months Three Months Twelve Months Twelve Months Ended Ended Ended Ended December 31 December 31 December 31 December 31 2008 2007 2008 2007 (Unaudited) (Unaudited) (Unaudited) Asset Quality: Nonperforming loans $ 27,524 $ 2,424 $ 27,524 $ 2,424 Other real estate 5,121 173 5,121 173 Total nonper- forming assets 32,645 2,597 32,645 2,597 Net charge-offs/ write-downs 936 240 2,443 466 Net charge-offs/ write-downs to average loans 0.15% 0.04% 0.38% 0.08% Allowance for loan losses to nonperforming loans 49.47% 278.84% 49.47% 278.84% Nonperforming loans to total loans 4.29% 0.38% 4.29% 0.38% Nonperforming assets to total assets 4.13% 0.32% 4.13% 0.32% Allowance for loan losses to period end loans 2.12% 1.05% 2.12% 1.05% Other Selected Ratios: Average equity to average assets 8.34% 8.18% 8.25% 8.20% Average loans to average deposits 122.87% 122.43% 124.85% 120.46% Average loans to average earning assets 87.93% 88.69% 88.85% 88.31% Balance Sheet Data (Dollars in thousands) Period Ended Period Ended December 31 December 31 2008 2007 (Unaudited) Assets: Cash and cash equivalents: Cash and due from banks $ 11,970 $ 29,142 Interest bearing deposit accounts 1,642 267 --------- --------- Total cash and cash equivalents 13,612 29,409 Investment securities: Securities held-for-sale 78,828 71,542 Securities held-to-maturity 215 270 Nonmarketable equity securities 10,815 9,503 --------- --------- Total investment securities 89,858 81,315 Loans held for sale 303 631 Loans receivable 641,737 645,154 Allowance for loan losses (13,617) (6,759) Premises and equipment, net 17,243 16,729 Intangible assets 9,507 9,956 Other assets 31,957 24,163 --------- --------- Total assets $ 790,600 $ 800,598 --------- --------- Liabilities and shareholders' equity: Deposits: Noninterest bearing $ 73,663 $ 62,175 Interest bearing 439,938 457,897 --------- --------- Total deposits 513,601 520,072 Federal funds purchased 24,143 47,705 Securities sold under agreements to repurchase 9,695 14,561 FHLB advances 161,185 135,525 Junior subordinated debentures 10,310 10,310 Other liabilities 6,709 7,578 --------- --------- Total liabilities $ 725,643 $ 735,751 --------- --------- Shareholders' equity: Common stock: $1 par value; 10 million shares authorized 5,667 5,604 Nonvested restricted stock (445) (443) Capital surplus 62,405 61,600 Accumulated other comprehensive income 527 485 Retained earnings 14,218 15,016 Treasury stock, at cost (17,415) (17,415) --------- --------- Total shareholders' equity 64,957 64,847 --------- --------- Total liabilities and shareholders' equity $ 790,600 $ 800,598 --------- --------- Income Statement Data Three Three Twelve Twelve (Dollars in thousands) Months Months Months Months Ended Ended Ended Ended December 31 December 31 December 31 December 31 2008 2007 2008 2007 (Unaudited) (Unaudited) (Unaudited) Interest income: Interest and fees on loans $ 9,385 $ 11,721 $ 39,710 $ 45,247 Interest on investment securities 994 1,021 3,878 3,864 Interest on federal funds sold and Interest-bearing deposits 1 4 6 21 ----------- ----------- ----------- ----------- Total interest income 10,380 12,746 43,594 49,132 Interest expense: Interest on deposits 2,284 4,151 10,835 16,491 Interest on borrowings 1,781 2,271 7,821 8,738 ----------- ----------- ----------- ----------- Total interest expense 4,065 6,422 18,656 25,229 Net interest income 6,315 6,324 24,938 23,903 Provision for loan losses 3,700 400 9,300 1,025 ----------- ----------- ----------- ----------- Net interest income after provision 2,615 5,924 15,638 22,878 Non-interest income: Service charges on deposit accounts 651 629 2,492 2,425 Gain on sale of loans held for sale 221 285 1,139 1,204 Fees from brokerage services 53 80 180 261 Income from fiduciary activities 327 448 1,725 1,590 Gain on sale of securities held- for-sale -- 1 98 -- Gain on sale of premises and equipment 6 -- 6 15 Other operating income 464 424 1,607 1,380 ----------- ----------- ----------- ----------- Total non- interest income 1,722 1,867 7,247 6,875 Non-interest expense: Salaries and employee benefits 2,209 2,778 10,853 11,087 Net occupancy expense 320 330 1,316 1,162 Amortization of intangible assets 112 117 449 470 Furniture and equipment expense 231 230 975 888 Loss on sale of securities held- for-sale -- -- -- 469 Other operating expenses 1,774 1,544 6,599 5,650 ----------- ----------- ----------- ----------- Total non- interest expense 4,646 4,999 20,192 19,726 Income before taxes (309) 2,792 2,693 10,027 Income tax expense (313) 958 284 3,139 ----------- ----------- ----------- ----------- Net income $ 4 $ 1,834 $ 2,409 $ 6,888 ----------- ----------- ----------- ----------- December 31, 2008 December 31, 2007 (Unaudited) (Dollars in thousands) Balance Percent Balance Percent Loans: Commercial and agricultural $ 43,443 6.77% $ 44,467 6.89% Real Estate - construction 185,414 28.89% 167,180 25.91% Real Estate - mortgage and commercial 344,456 53.68% 364,667 56.53% Home equity 47,830 7.45% 42,628 6.61% Consumer - Installment 19,073 2.97% 24,706 3.83% Other 1,521 0.24% 1,506 0.23% -------- ------- -------- ------- Total $641,737 100.00% $645,154 100.00% -------- ------- -------- ------- December 31, 2008 December 31, 2007 (Unaudited) (Dollars in thousands) Balance Percent Balance Percent Deposits: Noninterest bearing demand $ 73,663 14.34% $ 62,175 11.96% Interest bearing demand 66,035 12.86% 63,866 12.28% Money market and savings 183,300 35.69% 215,795 41.49% Certificates of deposit 190,603 37.11% 178,236 34.27% -------- ------- -------- ------- Total $513,601 100.00% $520,072 100.00% -------- ------- -------- ------- Wealth Management Group Fiduciary and Related Services: (Dollars in thousands, except number of accounts) December 31, 2008 December 31, 2007 (Unaudited) (Unaudited) Market value of accounts $396,596 $475,818 Market value of discretionary accounts $160,488 $201,111 Market value of non-discretionary $236,108 $274,707 accounts Total number of accounts 1,334 1,183 Yield/Rate Analysis Three Months Ended Three Months Ended YTD December 31, 2008 December 31, 2007 (Unaudited) (Unaudited) --------------------------------------------------- (Dollars in Average Yield/ Average Yield/ thousands) Balance Interest Rate Balance Interest Rate --------------------------------------------------- ASSETS Loans(1)(3) $642,478 $ 9,396 5.82% $637,756 $ 11,735 7.30% Securities, taxable(2) 48,238 645 5.32% 42,401 558 5.22% Securities, nontaxable(2)(3) 29,030 436 5.97% 29,448 447 6.02% Nonmarketable Equity Securities 10,348 32 1.23% 9,194 138 5.95% Fed funds sold and other (incl. FHLB) 565 1 0.70% 305 4 5.20% ----------------- ----------------- Total earning assets $730,659 $ 10,510 5.72% $719,104 $ 12,882 7.11% Non-earning assets 56,584 63,631 -------- -------- Total assets $787,243 $782,735 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Transaction accounts $215,733 $ 386 0.71% $233,120 $ 1,612 2.74% Regular savings accounts 37,677 197 2.08% 36,760 261 2.82% Certificates of deposit 194,731 1,700 3.47% 185,764 2,277 4.86% Other short term borrowings 30,311 82 1.08% 51,067 602 4.68% FHLB Advances 150,686 1,515 4.00% 128,653 1,486 4.58% Junior subordinate debentures 10,310 183 7.06% 10,310 184 7.08% ----------------- ----------------- Total interest- bearing liabilities $639,448 $ 4,063 2.53% $645,674 $ 6,422 3.95% Non-interest bearing liabilities 82,162 73,053 Stockholders' equity 65,633 64,008 -------- -------- Total liabilities & equity $787,243 $782,735 ======== ======== Net interest income/ interest rate spread $ 6,447 3.19% $ 6,460 3.16% ================ ================ Net yield on earning assets 3.51% 3.56% ===== ===== Yield/Rate Analysis YTD Twelve Months Ended Twelve Months Ended December 31, 2008 December 31, 2007 (Unaudited) --------------------------------------------------- (Dollars in Average Yield/ Average Yield/ thousands) Balance Interest Rate Balance Interest Rate --------------------------------------------------- ASSETS Loans(1)(3) $649,454 $ 39,754 6.12% $612,366 $ 45,296 7.40% Securities, taxable(2) 41,906 2,189 5.22% 44,444 2,119 4.77% Securities, nontaxable(2)(3) 29,289 1,772 6.05% 27,285 1,671 6.12% Nonmarketable Equity Securities 9,959 404 4.06% 8,946 534 5.97% Fed funds sold and other (incl. FHLB) 350 6 1.71% 402 21 5.22% ----------------- ----------------- Total earning assets $730,958 $ 44,125 6.04% $693,443 $ 49,641 7.16% Non-earning assets 59,981 64,056 -------- -------- Total assets $790,939 $757,499 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Transaction accounts $224,924 $ 2,902 1.29% $219,044 $ 6,404 2.92% Regular savings accounts 36,656 835 2.28% 38,369 1,029 2.68% Certificates of deposit 190,888 7,098 3.72% 186,437 9,058 4.86% Other short term borrowings 44,610 1,061 2.38% 45,839 2,301 5.02% FHLB Advances 142,936 6,034 4.22% 123,562 5,709 4.62% Junior subordinate debentures 10,310 726 7.04% 10,310 728 7.06% ----------------- ----------------- Total interest- bearing liabilities $650,624 $ 18,656 2.87% $623,561 $ 25,229 4.05% Non-interest bearing liabilities 75,054 71,826 Stockholders' equity 65,261 62,112 -------- -------- Total liabilities & equity $790,939 $757,499 ======== ======== Net interest income/ interest rate spread $ 25,469 3.17% $ 24,412 3.11% ================ ================ Net yield on earning assets 3.48% 3.52% ===== ===== (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.