EASLEY, S.C., Oct. 12, 2006 (PRIMEZONE) -- In a comparison with other start-up banks in its peer group, CommunitySouth Bank & Trust, a subsidiary of CommunitySouth Bancshares, Inc. (OTCBB:CBSO), is still ranked America's top-performing de novo bank for profitability performance, according to second quarter 2006 data supplied by SNL Financial, the leading financial information provider for the financial services industry. CommunitySouth's peer group is defined as all U.S.-based banks that opened during the first quarter of 2005, the same quarter that CommunitySouth opened its doors.
CommunitySouth Bank & Trust achieved year-to-date net income of $513,000, and second quarter 2006 income of $292,000 -- the most profit generated by any bank in the United States that opened during the same quarter. CommunitySouth ranked well ahead of its 30 peer banks, including the second most profitable bank -- Legacy Bank of Scottsdale, Arizona. Legacy Bank achieved year-to-date income of $358,000, $155,000 less than CommunitySouth.
In addition to ranking first in profitability, CommunitySouth ranks third in asset size among its 30 peer banks, as of the second quarter of 2006. However, the two banks that have grown faster than CommunitySouth have yet to achieve profitability. CommunitySouth had been ranked fourth in asset size among its peer group as of the first quarter of 2006.
"Our extraordinary growth and profitability is a testament to the market's acceptance of our unique, growth-oriented, intense customer-focused business model," said C. Allan Ducker, III, Chief Executive Officer of CommunitySouth Bank & Trust. "I am extremely pleased that we have been able to not only exceed our internal growth plan but to outperform our peer group of the 30 start-up banks that opened during the same period as CommunitySouth. The results are indicative of management's ability to not only grow our business but to also operate the company in an extremely efficient manner. As we continue to add to our team and enter new markets, we believe we have built the foundation for continuing success."
CommunitySouth, defying traditional de novo bank trends, achieved profitability in just its second full quarter of operation. The majority of start-up banks take 24 months or longer to become profitable. Of the 31 US-based banks that started operations during the first quarter of 2005, only 11 banks have reached profitability.
CommunitySouth's stock is quoted on the Over the Counter Bulletin Board Quotation System under the symbol CBSO.
Most Profitable Start-Up Banks in U.S.
Opened First Quarter 2005
Ranked by YTD Profitability
As of 2nd Qtr 2006
------------------ Net
Income (Loss)
Total Assets ($000)
($000) ---------------
Company Name City, State Q2 '06 '06 YTD Q2 '06
------------- ----------- ------- ------- ------
CommunitySouth
Bank & Trust Easley, SC 202,926 513 292
Legacy Bank Scottsdale, AZ 131,264 358 188
Bank of Houston Houston, TX 83,950 325 217
Stonegate Bank Fort Lauderdale, FL 179,170 280 168
First State Bank Nashua, IA 31,076 172 96
Commonwealth
Business Bank Los Angeles, CA 159,911 156 126
First Madison
Bank & Trust Colbert, GA 43,952 52 89
1st Advantage Bank Saint Peters, MO 47,078 51 56
Western National Bank Phoenix, AZ 115,301 35 -10
Ojai Community Bank Ojai, CA 29,740 29 17
Liberty Bank Clearwater, FL 84,973 1 58
Texas Brand Bank Garland, TX 39,619 -2 16
Cohutta Banking
Company of Tennessee Chattanooga, TN 59,831 -62 -75
Nature Coast Bank Crystal River, FL 20,392 -72 -12
Anchor Commercial Bank Juno Beach, FL 69,345 -128 -6
Alarion Bank Ocala, FL 114,868 -165 -65
Palmetto Heritage
Bank & Trust Pawleys Island, SC 34,288 -168 -81
Legacy State Bank Loganville, GA 46,186 -193 243
Bank of Michigan Farmington Hills, MI 39,082 -226 -77
NewDominion Bank Charlotte, NC 233,102 -291 -7
North Jersey
Community Bank Englewood Cliffs, NJ 129,792 -308 -121
Excel National Bank Beverly Hills, CA 45,961 -313 -144
Legacy National Bank Springdale, AR 163,086 -328 117
Lake National Bank Mentor, OH 33,092 -341 -145
Delaware Sterling
Bank & Trust Co. Christiana, DE 30,498 -395 -185
First Heritage Bank Newport Beach, CA 225,535 -459 -135
First Community Bank Santa Rosa, CA 188,039 -464 -26
MetroPacific Bank Irvine, CA 42,345 -632 -300
Metropolitan
Capital Bank Chicago, IL 48,368 -730 -305
Paragon National
Bank Memphis, TN 202,095 -764 -372
Rockford Bank and
Trust Company Rockford, IL 79,520 -876 -556
CommunitySouth Bancshares, Inc. (OTCBB: CBSO) commenced operations in the Upstate of South Carolina on January 18, 2005. Fueled by the largest initial public offering ever for a South Carolina-based bank, the company capitalized with $30 million and has since grown assets to over $235 million. In operation for less than two years, CommunitySouth is one of the fastest growing de novo banks in the country, compared to peer banks that also opened during the first quarter of 2005.
CommunitySouth is headquartered in Easley, South Carolina and plans to cover the entire Upstate market. Currently the bank operates full-service offices in Easley, Mauldin, Spartanburg and Anderson, and plans to open a full-service office in Greer in November 2006.
CommunitySouth offers a complete line of banking products and services, including commercial, consumer and mortgage loans, personal and business checking and savings accounts, free online banking with bill pay, a nationwide free ATM network, free business courier service, automated telebanc, courtesy overdraft coverage, and more.
For additional information about CommunitySouth, call 864-306-2540 or visit www.communitysouthbankandtrust.com
The CommunitySouth Bank & Trust logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2708
Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future profitability, growth, plans and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.
Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.