GREENWOOD, S.C., April 22, 2009 (GLOBE NEWSWIRE) -- Community Capital Corporation (Nasdaq:CPBK) announced its preliminary operating results today for the quarter ended March 31, 2009, and announced that the Board of Directors on April 21, 2009, voted to suspend the payment of the quarterly cash dividend on the Corporation's common stock effective immediately. In addition, the Corporation announced the withdrawal of its application for funds pursuant to the TARP Capital Purchase Program.
The company reports net income for the three months ended March 31, 2009 increased 10.50% to $863,000, or $0.19 per diluted share from $781,000, or $0.18 per diluted share for the same period in 2008. The company recorded provision for loan losses of $2.0 million during the first quarter of 2009 compared to $2.0 million during the first quarter of 2008. Non-performing assets increased $4.0 million to $36.6 million at March 31, 2009 from $32.6 million at December 31, 2008.
William G. Stevens, President and CEO, stated, "We are focused and committed to our continuous efforts to bolster our capital position in these uncertain economic times. In that regard, the Board of Directors has determined to suspend cash dividends at this point in time as a prudent means of capital preservation in light of the current economic conditions. Mr. Stevens further stated that the Board of Directors intends to reevaluate the payment of a quarterly dividend at the appropriate time. We believe that this action is the best course for the company over the long term. The Board and management are committed to successfully managing credit risk and to maintaining adequate levels of capital and liquidity in the current challenging economic times."
Additionally, as a result of the current uncertainty of the government's investment in financial institutions and the perceived unduly burdensome requirements imposed by the government on the entities that receive the TARP funds, the Board determined that the withdrawal of the corporation's application for TARP funds was in the best interest of Community Capital Corporation and its shareholders.
Mr. Stevens stated that "We are reporting a strong net interest margin and efficiency ratio that together are generating improved core earnings. We believe that these continued earnings will enable us to earn our way through the credit issues facing us and virtually all other commercial banks in the United States."
Return on average assets for the first quarter was 0.45% for 2009 compared to 0.39% for 2008. Return on average equity was 5.36% compared to 4.81% in 2008. Total assets decreased 4.76% to $772,103,000 at March 31, 2009 from $810,677,000 as of March 31, 2008. Total loans decreased $38,834,000 or 5.84% to $626,069,000 at March 31, 2009, compared to $664,903,000 at March 31, 2008. Total deposits decreased $2,110,000 or .41% to $518,403,000 at March 31, 2009 from $520,513,000 at March 31, 2008.
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, 2008.
Financial Highlights
(Dollars in thousands, except per share data)
Earnings Summary
Three Months Three Months Three Months
Ended Ended Ended
March 31 December 31 March 31
2009 2008 2008
(Unaudited) (Unaudited) (Unaudited)
Interest income $ 9,466 $ 10,380 $ 11,862
Interest expense 3,514 4,065 5,659
------------ ------------ ------------
Net interest income 5,951 6,315 6,203
Provision for loan losses 2,000 3,700 2,000
Non-interest income 1,862 1,722 1,858
Non-interest expense 4,753 4,646 5,076
------------ ------------ ------------
Income before taxes 1,059 (309) 985
Income tax expense 196 (313) 204
------------ ------------ ------------
Net income $ 863 $ 4 $ 781
------------ ------------ ------------
Per Shares Ratios:
Basic earnings per share $0.19 $0.00 $0.18
Diluted earnings per share $0.19 $0.00 $0.18
Dividends declared per share $0.15 $0.15 $0.15
Book value per share $14.51 $14.54 $14.66
Common Share Data:
Outstanding at period end 4,516,690 4,467,290 4,468,235
Weighted average outstanding 4,442,440 4,436,549 4,415,206
Diluted weighted average
outstanding 4,499,178 4,467,605 4,454,478
Balance Sheet Highlights
Average Balances:
Total assets $ 783,405 $ 787,243 $ 801,687
Earning assets 717,556 730,659 736,327
Loans 637,298 642,478 656,782
Deposits 518,575 522,895 531,647
Interest bearing deposits 432,046 448,141 469,977
Noninterest bearing deposits 86,529 74,754 61,670
Other borrowings 183,018 180,997 185,943
Junior subordinated
debentures 10,310 10,310 10,310
Shareholders' equity 65,274 65,633 65,223
Performance Ratios:
Return on average assets 0.45% 0.00% 0.39%
Return on average
shareholders' equity 5.36% 0.03% 4.81%
Net interest margin (fully
tax equivalent at 38%) 3.44% 3.51% 3.46%
Efficiency ratio 60.96% 56.93% 62.67%
Asset Quality:
Nonperforming loans $ 28,174 $ 27,524 $ 18,312
Other real estate 8,473 5,121 153
Total nonperforming assets 36,647 32,645 18,465
Net charge-offs/write-downs 3,775 936 1,275
Net charge-offs/write-downs
to average loans 0.59% 0.15% 0.19%
Allowance for loan losses to
nonperforming loans 42.03% 49.47% 40.87%
Nonperforming loans to total
loans 4.50% 4.29% 2.75%
Nonperforming assets to total
assets 4.75% 4.13% 2.28%
Allowance for loan losses to
period end loans 1.89% 2.12% 1.13%
Other Selected Ratios:
Average equity to average
assets 8.33% 8.34% 8.14%
Average loans to average
deposits 122.89% 122.87% 123.54%
Average loans to average
earning assets 88.82% 87.93% 89.20%
Balance Sheet Data
(Dollars in thousands, except per share data)
Period Ended Period Ended Period Ended
March 31 December 31 March 31
2009 2008 2008
(Unaudited) (Unaudited)
Assets:
Cash and cash equivalents:
Cash and due from banks $ 11,680 $ 11,970 $ 20,710
Interest bearing deposit
accounts 466 1,642 196
------------ ------------ ------------
Total cash and cash
equivalents 12,146 13,612 20,906
Investment securities:
Securities held-for-sale 72,569 78,828 70,018
Securities held-to-maturity 215 215 270
Nonmarketable equity
securities 9,635 10,815 9,660
------------ ------------ ------------
Total investment securities 82,419 89,858 79,948
Loans held for sale 1,774 303 1,351
Loans receivable 626,069 641,737 664,903
Allowance for loan losses (11,842) (13,617) (7,484)
Premises and equipment, net 16,997 17,243 17,298
Intangible assets 9,399 9,507 9,842
Other assets 35,141 31,957 23,913
------------ ------------ ------------
Total assets $ 772,103 $ 790,600 $ 810,677
------------ ------------ ------------
Liabilities and shareholders'
equity:
Deposits:
Noninterest bearing $ 89,384 $ 73,663 $ 65,506
Interest bearing 429,019 439,938 455,007
------------ ------------ ------------
Total deposits 518,403 513,601 520,513
Federal funds purchased &
Other ST Borrowings 33,959 24,143 56,251
Securities sold under
agreements to repurchase 2,047 9,695 15,444
FHLB advances 135,400 161,185 135,500
Junior subordinated
debentures 10,310 10,310 10,310
Other liabilities 6,453 6,709 7,151
------------ ------------ ------------
Total liabilities $ 706,572 $ 725,643 $ 745,169
------------ ------------ ------------
Shareholders' equity:
Common stock: $1 par value;
10 million shares
authorized 5,716 5,667 5,668
Nonvested restricted stock (651) (445) (763)
Capital surplus 62,658 62,405 62,425
Accumulated other
comprehensive income
(expense) 820 527 995
Retained earnings 14,403 14,218 14,598
Treasury stock, at cost (17,415) (17,415) (17,415)
------------ ------------ ------------
Total shareholders'
equity 65,531 64,957 65,508
------------ ------------ ------------
Total liabilities and
shareholders' equity $ 772,103 $ 790,600 $ 810,677
------------ ------------ ------------
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
2009 2008 2008
(Unaudited) (Unaudited) (Unaudited)
Interest income:
Interest and fees on loans $ 8,490 $ 9,385 $ 10,873
Interest on investment
securities 974 994 987
Interest on federal funds
sold and interest-bearing
deposits 2 1 2
------------ ------------ ------------
Total interest income 9,466 10,380 11,862
Interest expense:
Interest on deposits 1,842 2,284 3,553
Interest on borrowings 1,672 1,781 2,106
------------ ------------ ------------
Total interest expense 3,514 4,065 5,659
Net interest income 5,952 6,315 6,203
Provision for loan losses 2,000 3,700 2,000
------------ ------------ ------------
Net interest income after
provision 3,952 2,615 4,203
Non-interest income:
Service charges on deposit
accounts 563 651 586
Gain on sale of loans held
for sale 322 221 274
Commissions from sales of
mutual funds 37 53 46
Income from fiduciary
activities 348 327 469
Gain on sale of securities
held-for-sale 145 -- 97
Gain on sale of premises and
equipment 3 6 --
Other operating income 444 464 386
------------ ------------ ------------
Total non-interest income 1,862 1,722 1,858
Non-interest expense:
Salaries and employee
benefits 2,594 2,209 2,915
Net occupancy expense 320 320 329
Amortization of intangible
assets 108 112 115
Furniture and equipment
expense 233 231 235
Loss on sale of securities
held-for-sale -- -- --
Other operating expenses 1,498 1,774 1,482
------------ ------------ ------------
Total non-interest expense 4,753 4,646 5,076
Income before taxes 1,059 (309) 985
Income tax expense 196 (313) 204
------------ ------------ ------------
Net income $ 863 $ 4 $ 781
------------ ------------ ------------
March 31, 2009 December 31, 2008 March 31, 2008
Balance Percent Balance Percent Balance Percent
Loans:
Commercial and
agricultural $ 39,678 6.34% $ 43,443 6.77% $ 44,017 6.62%
Real Estate -
construction 176,668 28.22% 185,414 28.89% 168,167 25.29%
Real Estate -
mortgage and
commercial 336,304 53.72% 344,456 53.68% 384,870 57.88%
Home equity 48,266 7.71% 47,830 7.45% 42,486 6.39%
Consumer -
Installment 23,622 3.77% 19,073 2.97% 23,925 3.60%
Other 1,531 0.24% 1,521 0.24% 1,438 0.22%
-------- -------- -------- -------- -------- --------
Total $626,069 100.00% $641,737 100.00% $664,903 100.00%
-------- -------- -------- -------- -------- --------
March 31, 2009 December 31, 2008 March 31, 2008
Balance Percent Balance Percent Balance Percent
Deposits:
Noninterest
bearing demand $ 89,384 17.24% $ 73,663 14.34% $ 65,506 12.58%
Interest
bearing demand 71,402 13.77% 66,035 12.86% 64,070 12.31%
Money market
and savings 174,985 33.76% 183,300 35.69% 209,761 40.30%
Certificates of
deposit 182,632 35.23% 190,603 37.11% 181,176 34.81%
-------- -------- -------- -------- -------- --------
Total $518,403 100.00% $513,601 100.00% $520,513 100.00%
-------- -------- -------- -------- -------- --------
Wealth Management Group
Fiduciary and Related Services:
(Dollars in thousands, except March 31, December 31, March 31,
number of accounts) 2009 2008 2008
Market value of accounts $ 392,777 $ 396,596 $ 463,204
Market value of
discretionary accounts $ 155,553 $ 160,488 $ 193,061
Market value of
non-discretionary accounts $ 237,224 $ 236,108 $ 270,143
Total number of accounts 1,373 1,334 1,247
Yield/Rate Analysis YTD Three Months Ended
March 31, 2009
-------------------------
Average Yield/
(Dollars in thousands) Balance Interest Rate
-------------------------
ASSETS
Loans(1)(3) $637,298 $ 8,499 5.41%
Securities, taxable(2) 47,225 615 5.28%
Securities, nontaxable(2)(3) 28,152 453 6.53%
Nonmarketable Equity Securities 2,041 30 5.96%
Fed funds sold and other (incl. FHLB) 2,840 2 0.29%
-------- --------
Total earning assets 717,556 $ 9,599 5.43%
Non-earning assets 65,849
--------
Total assets $783,405
========
LIABILITIES AND STOCKHOLDERS' EQUITY
Transaction accounts $207,123 $ 290 0.57%
Regular savings accounts 37,360 168 1.82%
Certificates of deposit 187,563 1,384 2.99%
Other short term borrowings 36,218 34 0.38%
FHLB Advances 146,800 1,457 4.03%
Junior subordinate debentures 10,310 181 7.12%
-------- --------
Total interest-bearing liabilities 625,374 $ 3,514 2.28%
Non-interest bearing liabilities 92,757
Stockholders' equity 65,274
--------
Total liabilities & equity $783,405
========
Net interest income/ interest rate spread $ 6,085 3.15%
===============
Net yield on earning assets 3.44%
======
Yield/Rate Analysis
Three Months Ended
December 31, 2008
--------------------------
Average Yield/
(Dollars in thousands) Balance Interest Rate
--------------------------
ASSETS
Loans(1)(3) $642,478 $ 9,396 5.82%
Securities, taxable(2) 48,238 645 5.32%
Securities, nontaxable(2)(3) 29,030 436 5.97%
Nonmarketable Equity Securities 10,348 32 1.23%
Fed funds sold and other (incl. FHLB) 565 1 0.70%
------------------
Total earning assets $730,659 $ 10,510 5.72%
Non-earning assets 56,584
--------
Total assets $787,243
========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Transaction accounts $215,733 $ 386 0.71%
Regular savings accounts 37,677 197 2.08%
Certificates of deposit 194,731 1,700 3.47%
Other short term borrowings 30,311 82 1.08%
FHLB Advances 150,686 1,515 4.00%
Junior subordinate debt 10,310 183 7.06%
------------------
Total interest-bearing liabilities 639,448 $ 4,063 2.53%
Non-interest bearing liabilities 82,162
Stockholders' equity 65,633
--------
Total liabilities & equity $787,243
========
Net interest income/
interest rate spread $ 6,447 3.19%
================
Net yield on earning assets 3.51%
=====
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%
======
(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.