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.