GREENWOOD, S.C., Oct. 17, 2007 (PRIME NEWSWIRE) -- Community Capital Corporation (Nasdaq:CPBK) reports operating results for the nine months and quarter ending September 30, 2007.
Net income for the three months ended September 30, 2007 increased 37% to $1,636,000 or $0.42 per diluted share, from $1,194,000 or $0.31 per diluted share for the same period in 2006. Pro forma net income for the three months ended September 30, 2007 increased 60% to $1,912,000 or $0.50 per diluted share, from $1,194,000 or $0.31 per diluted share.(1) Return on average assets for the quarter was 0.84% for 2007 compared to 0.70% for 2006. Return on average equity was 10.35% compared to 8.17% in 2006. Pro forma return on average assets for the quarter was 0.99% for 2007 compared to 0.70% for 2006, and pro forma return on average equity was 12.10% for 2007 compared to 8.17% in 2006.(1)
Net income for the nine months ended September 30, 2007 increased 20% to $5,055,000 from $4,215,000 for the same period in 2006. Diluted earnings per share for the nine month period ended September 30, 2007 increased 18% to $1.31 from $1.11 for the nine months ended September 30, 2006. Pro forma net income for the nine months ended September 30, 2007 increased 27% to $5,355,000 or $1.39 per diluted share, from $4,210,000 or $1.10 per diluted share for the same period in 2006.(1) Return on average assets for the nine months was 0.90% for 2007 compared to 0.87% for 2006. Return on average equity was 10.99% in 2007 compared to 9.92% in 2006. Pro forma return on average assets for the nine months was 0.96% compared to 0.87% for 2006, and pro forma return on average equity for the nine months was 11.65% for 2007 compared to 9.91% in 2006.(1)
Total assets increased 14% to $781,857,000 at September 30, 2007 from $686,550,000 as of September 30, 2006. Total loans increased $83,559,000 or 15% to $632,624,000 at September 30, 2007, compared to $549,065,000 at September 30, 2006. Total deposits increased $52,521,000 or 11% to $532,442,000 at September 30, 2007 from $479,921,000 at September 30, 2006.
Community Capital Corporation is the parent company of CapitalBank, which operates 17 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 Quarterly Report on Form 10-Q for the quarter ended June 30, 2007.
Financial Highlights
(Dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30 September 30
--------------------- ---------------------
2007 2006 2007 2006
--------- --------- --------- ---------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Earnings Summary
Interest income $ 12,695 $ 10,696 $ 36,386 $ 29,431
Interest expense
6,565 5,288 18,807 13,829
--------- --------- --------- ---------
Net interest income 6,130 5,408 17,579 15,602
Provision for loan
losses 300 650 625 800
Non-interest income 1,756 1,588 5,011 4,405
Non-interest expense
5,252 4,711 14,729 13,551
--------- --------- --------- ---------
Income before taxes 2,334 1,635 7,236 5,656
Income tax expense
698 441 2,181 1,441
--------- --------- --------- ---------
Net income $ 1,636 $ 1,194 $ 5,055 $ 4,215
--------- --------- --------- ---------
Per Shares Ratios:
Basic earnings
per share $ 0.43 $ 0.32 $ 1.33 $ 1.13
Diluted earnings
per share $ 0.42 $ 0.31 $ 1.31 $ 1.11
Dividends declared
per share $ 0.15 $ 0.15 $ 0.45 $ 0.45
Book value per share $ 16.50 $ 15.22 $ 16.50 $ 15.22
Common Share Data:
Outstanding at
period end 3,837,705 3,781,862 3,837,705 3,781,862
Weighted average
outstanding 3,810,625 3,750,673 3,797,572 3,732,151
Diluted weighted
average outstanding 3,851,278 3,811,894 3,845,675 3,813,464
Balance Sheet Highlights
Average Balances:
Total assets $ 769,632 $ 677,919 $ 748,819 $ 646,668
Earning assets 705,597 615,434 684,795 585,399
Loans 621,477 539,111 603,810 508,474
Deposits 522,006 487,974 504,105 471,431
Interest bearing
deposits 456,929 418,011 439,875 402,949
Noninterest bearing
deposits 65,077 69,963 64,230 68,482
Other borrowings 166,959 121,681 165,923 114,366
Junior subordinated
debentures 10,310 10,310 10,310 4,079
Shareholders' equity 62,707 57,954 61,473 56,792
Performance Ratios:
Return on average assets 0.84% 0.70% 0.90% 0.87%
Return on average
shareholders' equity 10.35% 8.17% 10.99% 9.92%
Net interest margin
(fully tax equivalent
at 38%) 3.52% 3.58% 3.51% 3.65%
Efficiency ratio 60.28% 66.13% 62.10% 66.47%
Asset Quality:
Nonperforming loans $ 2,446 $ 3,935 $ 2,446 $ 3,935
Other real estate 107 127 107 127
Total nonperforming
assets 2,553 4,062 2,553 4,062
Net charge-offs 130 647 225 975
Net charge-offs to
average loans 0.02% 0.12% 0.04% 0.19%
Allowance for loan
losses to nonper-
forming loans 269.83% 156.26% 269.83% 156.26%
Nonperforming loans
to total loans 0.39% 0.72% 0.39% 0.72%
Nonperforming assets
to total assets 0.33% 0.59% 0.33% 0.59%
Allowance for loan
losses to period end
loans 1.04% 1.12% 1.04% 1.12%
Other Selected Ratios:
Average equity to
average assets 8.15% 8.55% 8.21% 8.78%
Average loans to
average deposits 119.06% 110.48% 119.78% 107.86%
Average loans to average
earning assets 88.08% 87.60% 88.17% 86.86%
Balance Sheet Data
(Dollars in thousands, except per share data)
Period Ended
------------------------------------
Sept. 30 Dec. 31 Sept. 30
2007 2006 2006
-------- -------- --------
(Unaudited) (Unaudited)
Assets:
Cash and cash equivalents:
Cash and due from banks $ 22,185 $ 22,167 $ 20,459
Interest bearing deposit
accounts 238 307 248
-------- -------- --------
Total cash and cash
equivalents 22,423 22,474 20,707
Investment securities:
Securities held-for-sale 72,622 65,496 67,345
Securities held-to-maturity 325 380 380
Nonmarketable equity securities 9,056 8,073 7,018
-------- -------- --------
Total investment securities 82,003 73,949 74,743
Loans held for sale 920 554 729
Loans receivable 632,624 573,639 549,065
Allowance for loan losses (6,600) (6,200) (6,149)
Premises and equipment, net 16,148 15,429 14,495
Intangible assets 10,074 10,427 10,549
Other assets 24,265 22,972 22,411
-------- -------- --------
Total assets $781,857 $713,244 $686,550
-------- -------- --------
Liabilities and shareholders'
equity:
Deposits:
Noninterest bearing $ 66,912 $ 63,733 $ 59,978
Interest bearing 465,530 423,223 419,943
-------- -------- --------
Total deposits 532,442 486,956 479,921
Federal funds purchased 26,149 26,953 32,131
Securities sold under agreements
to repurchase 16,902 18,329 18,112
FHLB advances 125,550 105,625 82,150
Junior subordinated debentures 10,310 10,310 10,310
Other liabilities 7,189 6,145 6,371
-------- -------- --------
Total liabilities $718,542 $654,318 $628,995
-------- -------- --------
Shareholders' equity:
Common stock: $1 par value;
10 million shares authorized 4,872 4,818 4,811
Nonvested restricted stock (578) (558) (670)
Capital surplus 48,476 47,671 47,618
Accumulated other comprehensive
income 57 (269) (492)
Retained earnings 27,715 24,386 23,410
Treasury stock, at cost (17,227) (17,122) (17,122)
-------- -------- --------
Total shareholders' equity 63,315 58,926 57,555
-------- -------- --------
Total liabilities and
shareholders' equity $781,857 $713,244 $686,550
-------- -------- --------
Income Statement Data
(Dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30 September 30
----------------- -----------------
2007 2006 2007 2006
------- ------- ------- -------
(Unaudited)
Interest income:
Interest and fees on loans $11,666 $ 9,857 $33,526 $26,910
Interest on investment
securities 1,026 833 2,843 2,509
Interest on federal funds sold
and interest-bearing deposits 3 6 17 12
------- ------- ------- -------
Total interest income 12,695 10,696 36,386 29,431
Interest expense:
Interest on deposits 4,401 3,627 12,340 9,671
Interest on borrowings 2,164 1,661 6,467 4,158
------- ------- ------- -------
Total interest expense 6,565 5,288 18,807 13,829
Net interest income 6,130 5,408 17,579 15,602
Provision for loan losses 300 650 625 800
------- ------- ------- -------
Net interest income after
provision 5,830 4,758 16,954 14,802
Non-interest income:
Service charges on
deposit accounts 611 674 1,796 1,961
Gain on sale of loans held
for sale 341 189 919 526
Fees from brokerage services 76 106 181 214
Income from fiduciary
activities 396 302 1,142 847
Gain on sale of securities
held-for-sale -- -- -- 6
Gain on sale of premises
and equipment -- -- 15 2
Other operating income 332 317 958 849
------- ------- ------- -------
Total non-interest income 1,756 1,588 5,011 4,405
Non-interest expense:
Salaries and employee benefits 2,795 2,744 8,309 7,931
Net occupancy expense 284 283 832 835
Amortization of intangible
assets 118 123 353 369
Furniture and equipment
expense 224 221 658 633
Loss on sale of securities
held-for-sale 417 -- 470 --
Other operating expenses 1,414 1,340 4,107 3,783
------- ------- ------- -------
Total non-interest expense 5,252 4,711 14,729 13,551
Income before taxes 2,334 1,635 7,236 5,656
Income tax expense 698 441 2,181 1,441
------- ------- ------- -------
Net income $ 1,636 $ 1,194 $ 5,055 $ 4,215
------- ------- ------- -------
Basic earnings per share $ 0.43 $ 0.32 $ 1.33 $ 1.13
Diluted earnings per share $ 0.42 $ 0.31 $ 1.31 $ 1.11
Sept. 30, 2007 Dec. 31, 2006 Sept. 30, 2006
---------------- ---------------- ----------------
Balance Percent Balance Percent Balance Percent
Loans:
Commercial
and
agricultural $ 42,482 6.71% $ 44,910 7.83% $ 44,991 8.20%
Real Estate
- construction 173,410 27.41% 142,694 24.88% 124,194 22.62%
Real Estate
- mortgage
and
commercial 342,431 54.13% 321,440 56.03% 313,834 57.16%
Home equity 41,058 6.49% 40,805 7.11% 41,036 7.47%
Consumer -
Installment 31,696 5.01% 22,092 3.85% 23,520 4.28%
Other 1,547 0.25% 1,698 0.30% 1,490 0.27%
-------- ------ -------- ------ -------- ------
Total $632,624 100.00% $573,639 100.00% $549,065 100.00%
-------- ------ -------- ------ -------- ------
Deposits:
Noninterest
bearing
demand $ 66,912 12.57% $ 63,733 13.09% $ 59,978 12.50%
Interest
bearing
demand 68,988 12.96% 64,743 13.30% 65,995 13.75%
Money market
and savings 208,315 39.12% 168,592 34.62% 160,959 33.54%
Certificates of
deposit 188,227 35.35% 189,888 38.99% 192,989 40.21%
-------- ------ -------- ------ -------- ------
Total $532,442 100.00% $486,956 100.00% $479,921 100.00%
-------- ------ -------- ------ -------- ------
Wealth Management Group
Fiduciary and Related Services:
(Dollars in thousands, except number of accounts)
Sept. 30, 2007 Dec. 31, 2006 Sept. 30, 2006
-------------- ------------- --------------
Market value
of accounts $461,890 $370,362 $335,653
Market value of
discretionary
accounts $201,371 $154,168 $143,997
Market value of
non-discretion-
ary accounts $260,519 $216,194 $191,656
Total number
of accounts 1,111 975 773
Yield/Rate Analysis YTD
(Dollars in thousands)
Three Months Ended
-----------------------------------------------------
September 30, 2007 September 30, 2006
------------------------- -------------------------
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
-------- ------- ---- -------- ------- ----
ASSETS
Loans(a)(c) $621,477 $11,655 7.44% $539,111 $ 9,865 7.26%
Securities,
taxable(b) 46,785 608 5.16% 41,868 458 4.34%
Securities, non-
taxable(b)(c) 28,046 426 6.03% 27,079 418 6.12%
Nonmarketable
Equity
Securities 9,056 137 6.00% 6,932 100 5.72%
Fed funds sold
and other
(incl. FHLB) 233 3 5.11% 444 6 5.36%
------------------ ------------------
Total earning
assets $705,597 $12,829 7.21% $615,434 $10,847 6.99%
Non-earning
assets 64,035 62,485
-------- --------
Total assets $769,632 $677,919
======== ========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Transaction
accounts $230,260 $ 1,794 3.09% $186,744 $ 1,283 2.73%
Regular savings
accounts 37,995 265 2.77% 38,856 213 2.17%
Certificates of
deposit 188,675 2,343 4.93% 192,411 2,134 4.40%
Other short term
borrowings 41,400 531 5.09% 40,066 525 5.20%
FHLB Advances 125,558 1,449 4.58% 81,615 954 4.64%
Junior sub-
ordinate
debentures 10,310 183 7.04% 10,310 179 6.89%
------------------ ------------------
Total interest-
bearing
liabilities $634,198 $ 6,565 4.11% $550,002 $ 5,288 3.81%
Non-interest
bearing
liabilities 72,727 69,963
Stockholders'
equity 62,707 57,954
-------- --------
Total liabili-
ties &
equity $769,632 $677,919
======== ========
Net interest
income/interest
rate spread $ 6,264 3.11% $ 5,559 3.18%
============== ==============
Net yield on
earning assets 3.52% 3.58%
==== ====
Yield/Rate Analysis YTD
(Dollars in thousands)
Nine Months Ended Nine Months Ended
September 30, 2007 September 30, 2006
------------------------- -------------------------
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
-------- -------- ---- -------- -------- ----
ASSETS
Loans(a)(c) $603,810 $ 33,561 7.43% $508,474 $ 26,934 7.08%
Securities,
taxable(b) 45,132 1,561 4.62% 43,044 1,332 4.14%
Securities,
nontaxable
(b)(c) 26,555 1,239 6.24% 27,494 1,279 6.22%
Nonmarketable
Equity
Securities 8,862 396 5.97% 6,103 258 5.65%
Fed funds sold
and other
(incl. FHLB) 436 17 5.21% 284 12 5.65%
------------------- ------------------
Total earning
assets $684,795 $ 36,774 7.18% $585,399 $ 29,815 6.81%
Non-earning
assets 64,024 61,269
-------- ---------
Total assets $748,819 $646,668
======== =========
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Transaction
accounts $214,301 $ 4,792 2.99% $176,892 $ 3,406 2.57%
Regular savings
accounts 38,911 768 2.64% 38,821 565 1.95%
Certificates
of deposit 186,663 6,781 4.86% 187,236 5,700 4.07%
Other short term
borrowings 44,076 1,699 5.15% 44,150 1,608 4.87%
FHLB Advances 121,847 4,223 4.63% 70,216 2,339 4.45%
Junior
subordinate
debentures 10,310 544 7.05% 4,079 211 6.92%
------------------- ------------------
Total interest
bearing
liabilities $616,108 $ 18,807 4.08% $521,394 $ 13,829 3.55%
Non-interest
bearing
liabilities 71,238 68,482
Stockholders'
equity 61,473 56,792
-------- ---------
Total
liabilities
& equity $748,819 $646,668
======== =========
Net interest
income/
interest
rate spread $ 17,967 3.10% $ 15,986 3.26%
=============== ================
Net yield on
earning assets 3.51% 3.65%
===== =====
a) The effect of loans in nonaccrual status and fees collected is not
significant to the computations.
b) Average investment securities exclude the valuation allowance on
securities available-for-sale.
c) Fully tax-equivalent basis at 38% tax rate for nontaxable
securities and loans.
Footnote 1
Pro Forma Earnings Reconciliation
Three Months Ended Nine Months Ended
September 30 September 30
2007 2006 2007 2006
Net income before one
time items $ 1,636 $ 1,194 $ 5,055 $ 4,215
Loss (gain) on sale of
securities held-for-
sale 417 -- 470 (6)
Gain on sale of
premises and equipment -- -- (15) (2)
------- --------- ------- --------
Total non-recurring
items before tax 417 -- 455 (8)
Tax adjustment on one
time items (142) -- (155) 3
------- --------- ------- --------
Pro forma net income $ 1,912 $ 1,194 $ 5,355 $ 4,210
------- --------- ------- --------
Pro forma basic earnings
per share $ 0.50 $ 0.32 $ 1.41 $ 1.13
Pro forma diluted
earnings per share $ 0.50 $ 0.31 $ 1.39 $ 1.10
Pro forma return on
average assets 0.99% 0.70% 0.96% 0.87%
Pro forma return on
average shareholders'
equity 12.10% 8.17% 11.65% 9.91%