GREENWOOD, S.C., July 26, 2010 (GLOBE NEWSWIRE) -- Community Capital Corporation CPBK reports operating results for the six months and quarter ending June 30, 2010.
- Nonaccrual loans decreased 30% to $22.9 million since March 31, 2010
- Nonperforming assets (defined as nonaccrual loans, loans 90+ days past due and other real estate) declined 11% to $38.0 million since March 31, 2010
- Nonperforming assets that have sold and closed since June 30, 2010 or under contract or letter of intent as of July 26, 2010, and expected to close during the third quarter, totaled $3.0 million which would result in a decline of 8% of nonperforming assets from level at June 30, 2010
- Ratio of past due loans 30 to 89 days to gross loans was 0.66% at June 30, 2010
- Total risk based capital increased to 13.52%, from 12.94% at March 31, 2010, well above the regulatory requirement to be considered "well capitalized"
- Profitable for the second consecutive quarter with net income of $353,000
- Total deposits grew $10.3 million since March 31, 2010 after eliminating over $14 million in brokered funding during the quarter
- Brokered funding now represents only 2% of total deposits
- Bonds were sold during the quarter to shorten the duration of the portfolio resulting in gains of $582,000
- Market value of accounts in our wealth management division increased more than $21 million, or approximately 4%, during the quarter and have grown 28% over the past twelve months
- Balance sheet liquidity was maintained at a very high level throughout the quarter with cash balances exceeding $112 million at June 30, 2010
Community Capital Corporation today reported net income for the three months ended June 30, 2010 of $353,000, or $0.04 per diluted share, compared to a net loss of $2,941,000, or $0.66 per diluted share for the same period in 2009. The company recorded provision for loan losses of $2.0 million during the second quarter of 2010 compared to $5.8 million during the second quarter of 2009. Non-performing assets decreased $4.8 million to $38.0 million at June 30, 2010 from $42.8 million at March 31, 2010 and decreased $12.0 million from $50.0 million at December 31, 2009.
Return on average assets for the quarter was 0.19% for 2010 compared to (1.51)% for the same period in 2009 and 0.87% for the first quarter of 2010. Return on average equity was 2.55% for the quarter ended June 30, 2010 compared to (18.46)% for the same period in 2009, and 11.93% for the quarter ended March 31, 2010.
Total assets increased 1.01% to $757,045,000 at June 30, 2010 from $749,442,000 as of December 31, 2009, and 1.50% from $745,837,000 at March 31, 2010. Total loans decreased $45,692,000 or 8.06% to $521,486,000 at June 30, 2010 from $567,178,000 at December 31, 2009, and decreased $27,524,000 from $549,010,000 at March 31, 2010. Total deposits increased $5,293,000 or 0.91% to $588,776,000 at June 30, 2010 from $583,483,000 at December 31, 2009, and increased $10,280,000 or 1.78% from $578,496,000 at March 31, 2010.
William G. Stevens, President/CEO of Community Capital Corporation, stated, "We continue to be pleased by our success in eliminating nonperforming assets from our balance sheet. We will remain focused on this objective for the near future. We are also pleased by our ability to produce positive earnings, to increase our regulatory capital levels, and to maintain sound margins despite significant amounts of cash on our balance sheet. While the general economic downturn will continue to hamper our pace of improvement, our core earnings capacity along with our capital position should allow us the flexibility to eliminate bad assets more quickly than our peers."
Community Capital Corporation is the parent company of CapitalBank, which operates 18 community oriented branches throughout upstate South Carolina and offers 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.
Cautionary Note Regarding Forward-Looking Statements
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 plans and expectations, and are thus prospective. Such forward-looking statements include but are not limited to (1) statements regarding potential future economic recovery, (2) statements with respect to our plans, objectives, expectations and intentions and other statements that are not historical facts, and (3) other statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," and "projects," as well as similar expressions. Such statements are subject to risks, uncertainties, and other factors 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. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) the challenges, costs and complications associated with the continued development of our branches; (2) the potential that loan charge-offs may exceed the allowance for loan losses or that such allowance will be increased as a result of factors beyond our control; (3) our ability and success in resolving troubled loans; (4) changes in the U.S. legal and regulatory framework, including the effect of recent financial reform legislation on the banking industry; (5) our dependence on senior management; (6) competition from existing financial institutions operating in our market areas as well as the entry into such areas of new competitors with greater resources, broader branch networks and more comprehensive services; (7) adverse conditions in the stock market, the public debt market, and other capital markets (including changes in interest rate conditions); (8) changes in deposit rates, the net interest margin, and funding sources; (9) risks inherent in making loans including repayment risks and value of collateral; (10) the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations may be different than expected resulting in, among other things, a deterioration in credit quality or a reduced demand for credit, including the resultant effect on our loan portfolio and allowance for loan losses; (11) fluctuations in consumer spending and saving habits; (12) the demand for our products and services; (13) the challenges and uncertainties in the implementation of our expansion and development strategies; (14) the adequacy of expense projections and estimates of impairment loss; (15) unanticipated regulatory or judicial proceedings; and (16) the timely development and acceptance of products and services, including products and services offered through alternative delivery channels such as the Internet.
Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found in Community Capital Corporation's reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the SEC and available at the SEC's Internet site (http://www.sec.gov). All references to financial information as of December 31, 2009 are derived from our Annual Report on Form 10-K for the year ended December 31, 2009. All subsequent written and oral forward-looking statements concerning the company or any person acting on its behalf is expressly qualified in its entirety by the cautionary statements above. We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.
| Financial Highlights | ||||
| (Dollars in thousands, except per share data) | ||||
|
Three Months Ended June 30, 2010 |
Three Months Ended June 30, 2009 |
Six Months Ended June 30, 2010 |
Six Months Ended June 30, 2009 |
|
| Earnings Summary | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
| Interest income | $8,052 | $9,239 | $16,309 | $18,705 |
| Interest expense | 2,889 | 3,482 | 5,725 | 6,997 |
| Net interest income | 5,163 | 5,757 | 10,584 | 11,708 |
| Provision for loan losses | 2,000 | 5,800 | 3,600 | 7,800 |
| Non-interest income | 2,576 | 2,238 | 5,934 | 4,097 |
| Non-interest expense | 5,365 | 7,022 | 10,258 | 11,773 |
| Income (loss) before taxes | 374 | (4,827) | 2,660 | (3,768) |
| Income tax expense (benefit) | 21 | (1,886) | 707 | (1,690) |
| Net income (loss) | $353 | $(2,941) | $1,953 | $(2,078) |
| Per Shares Ratios: | ||||
| Basic earnings (loss) per share | $0.04 | $(0.66) | $0.20 | $(0.47) |
| Diluted earnings (loss) per share | $0.04 | $(0.66) | $0.20 | $(0.47) |
| Dividends declared per share | $0.00 | $0.00 | $0.00 | $0.15 |
| Book value per share | $5.61 | $13.74 | $5.61 | $13.74 |
| Common Share Data: | ||||
| Outstanding at period end | 9,952,693 | 4,523,966 | 9,952,693 | 4,523,966 |
| Weighted average outstanding | 9,899,454 | 4,451,987 | 9,875,871 | 4,447,240 |
| Diluted weighted average outstanding | 9,936,036 | 4,451,987 | 9,915,576 | 4,447,240 |
| Balance Sheet Highlights |
Three Months Ended June 30, 2010 |
Three Months Ended March 31, 2010 |
Three Months Ended December 31, 2009 |
Three Months Ended June 30, 2009 |
Six Months Ended June 30, 2010 |
Six Months Ended June 30, 2009 |
| Average Balances: | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
| Total assets | $752,051 | $749,768 | $749,170 | $782,430 | $750,916 | $782,915 |
| Earning assets | 694,439 | 685,008 | 708,038 | 715,954 | 689,749 | 716,751 |
| Loans | 538,676 | 560,249 | 596,492 | 626,961 | 549,403 | 632,101 |
| Deposits | 584,305 | 582,109 | 572,368 | 529,001 | 583,213 | 523,817 |
| Interest bearing deposits | 480,988 | 471,191 | 467,712 | 428,957 | 476,110 | 430,492 |
| Noninterest bearing deposits | 103,317 | 110,918 | 104,656 | 100,044 | 107,103 | 93,325 |
| Other borrowings | 95,400 | 95,400 | 99,748 | 172,840 | 95,400 | 177,902 |
| Junior subordinated debentures | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 |
| Shareholders' equity | 55,463 | 54,396 | 58,028 | 63,935 | 54,933 | 63,832 |
| Performance Ratios: | ||||||
| Return on average assets | 0.19% | 0.87% | (0.73)% | (1.51)% | 0.52% | -0.46% |
| Return on average shareholders' equity | 2.55% | 11.93% | (9.45)% | (18.46)% | 7.17% | (6.49)% |
| Net interest margin | 3.02% | 3.25% | 3.00% | 3.29% | 3.13% | 3.36% |
| (fully tax equivalent at 38%) | ||||||
| Efficiency ratio | 74.28% | 59.91% | 94.54% | 89.05% | 66.66% | 75.06% |
| June 30, 2010 | March 31, 2010 | December 31, 2009 | June 30, 2009 | June 30, 2010 | June 30, 2009 | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
| Asset Quality: | ||||||
| Nonperforming loans | $24,139 | $33,922 | $42,826 | $28,826 | $24,139 | $28,826 |
| Other real estate | 13,840 | 8,833 | 7,165 | 5,554 | 13,840 | 5,554 |
| Total nonperforming assets | 37,979 | 42,755 | 49,991 | 34,380 | 37,979 | 34,380 |
| Total impaired loans | 85,343 | 77,469 | 71,956 | 72,960 | 85,343 | 72,960 |
| Net charge-offs/write-downs | 2,841 | 1,742 | 24,783 | 2,790 | 4,583 | 6,566 |
| Net charge-offs/write-downs to average loans | 0.53% | 0.31% | 4.15% | 0.45% | 0.83% | 1.04% |
| Allowance for loan losses to nonperforming loans | 54.59% | 41.32% | 33.06% | 51.52% | 54.59% | 51.52% |
| Nonperforming loans to total loans | 4.63% | 6.18% | 7.55% | 4.69% | 4.63% | 4.69% |
| Nonperforming assets to total assets | 5.02% | 5.73% | 6.67% | 4.22% | 5.02% | 4.22% |
| Allowance for loan losses to period end loans | 2.53% | 2.55% | 2.50% | 2.41% | 2.53% | 2.41% |
| Other Selected Ratios: | ||||||
| Average equity to average assets | 7.37% | 7.26% | 7.75% | 8.17% | 7.32% | 8.15% |
| Average loans to average deposits | 92.19% | 96.24% | 104.21% | 118.52% | 94.20% | 120.67% |
| Average loans to average earning assets | 77.57% | 81.79% | 84.25% | 87.57% | 79.65% | 88.19% |
| Balance Sheet Data | ||||
| (Dollars in thousands, except per share data) | June 30, 2010 | March 31, 2010 | December 31, 2009 | June 30, 2009 |
| (Unaudited) | (Unaudited) | (Unaudited) | ||
| Assets: | ||||
| Cash and cash equivalents: | ||||
| Cash and due from banks | $15,351 | $10,384 | $10,141 | $16,114 |
| Interest bearing deposit accounts | 97,527 | 60,002 | 38,990 | 58,101 |
| Total cash and cash equivalents | 112,878 | 70,386 | 49,131 | 74,215 |
| Investment securities: | ||||
| Securities held-for-sale | 56,143 | 67,764 | 68,826 | 65,409 |
| Securities held-to-maturity | 160 | 160 | 160 | 215 |
| Nonmarketable equity securities | 10,402 | 10,364 | 10,186 | 10,186 |
| Total investment securities | 66,705 | 78,288 | 79,172 | 75,810 |
| Loans held for sale | 4,582 | 1,396 | 1,103 | 3,394 |
| Loans receivable | 521,486 | 549,010 | 567,178 | 614,986 |
| Allowance for loan losses | (13,177) | (14,018) | (14,160) | (14,851) |
| Other real estate owned | 13,840 | 8,833 | 7,165 | 5,553 |
| Premises and equipment, net | 15,737 | 15,931 | 16,150 | 16,593 |
| Prepaid expenses | 4,117 | 4,548 | 4,873 | 496 |
| Intangible assets | 1,460 | 1,560 | 1,663 | 1,875 |
| Goodwill | -- | -- | -- | 7,419 |
| Cash surrender value of life insurance | 17,035 | 16,861 | 16,689 | 16,335 |
| Deferred tax asset | 5,925 | 5,955 | 6,622 | 3,394 |
| Income tax receivable | -- | 1,640 | 9,634 | 5,700 |
| Other assets | 6,457 | 5,447 | 4,222 | 3,793 |
| Total assets | $757,045 | $745,837 | $749,442 | $814,712 |
| Liabilities and shareholders' equity: | ||||
| Deposits: | ||||
| Noninterest bearing | $108,332 | $101,462 | $112,333 | $105,696 |
| Interest bearing | 480,444 | 477,034 | 471,150 | 463,657 |
| Total deposits | 588,776 | 578,496 | 583,483 | 569,352 |
| Federal funds purchased, securities sold under agreements to repurchase and other short term borrowings | -- | -- | -- | 30,109 |
| FHLB advances | 95,400 | 95,400 | 95,400 | 135,400 |
| Junior subordinated debentures | 10,310 | 10,310 | 10,310 | 10,310 |
| Other liabilities | 6,768 | 6,574 | 6,492 | 7,470 |
| Total liabilities | $701,254 | $690,780 | $695,685 | $752,641 |
| Shareholders' equity: | ||||
| Common stock: $1 par value; 10 million shares authorized | 10,721 | 10,721 | 10,721 | 5,716 |
| Nonvested restricted stock | (234) | (293) | (364) | (556) |
| Capital surplus | 65,539 | 65,906 | 66,473 | 62,658 |
| Accumulated other comprehensive income | 678 | 444 | 909 | 167 |
| Retained earnings | (9,752) | (10,105) | (11,705) | 11,463 |
| Treasury stock, at cost | (11,161) | (11,616) | (12,277) | (17,377) |
| Total shareholders' equity | 55,791 | 55,057 | 53,757 | 62,071 |
| Total liabilities and shareholders' equity | $757,045 | $745,837 | $749,442 | $814,712 |
| Income Statement Data | ||||||||
| (Dollars in thousands, except per share data) |
Three Months Ended June 30, 2010 |
Three Months Ended March 31, 2010 |
Three Months Ended December 31, 2009 |
Three Months Ended June 30, 2009 |
Six Months Ended June 30, 2010 |
Six Months Ended June 30, 2009 |
||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||
| Interest income: | ||||||||
| Interest and fees on loans | $7,343 | $7,500 | $7,644 | $8,401 | $14,843 | $16,891 | ||
| Interest on investment securities | 669 | 736 | 839 | 831 | 1,406 | 1,806 | ||
| Interest on federal funds sold and Interest-bearing deposits | 40 | 22 | 19 | 7 | 60 | 8 | ||
| Total interest income | 8,052 | 8,258 | 8,502 | 9,239 | 16,309 | 18,705 | ||
| Interest expense: | ||||||||
| Interest on deposits | 1,974 | 1,930 | 2,031 | 1,823 | 3,904 | 3,664 | ||
| Interest on borrowings | 915 | 906 | 1,194 | 1,659 | 1,821 | 3,333 | ||
| Total interest expense | 2,889 | 2,836 | 3,225 | 3,482 | 5,725 | 6,997 | ||
| Net interest income | 5,163 | 5,422 | 5,277 | 5,757 | 10,584 | 11,708 | ||
| Provision for loan loss | 2,000 | 1,600 | 1,000 | 5,800 | 3,600 | 7,800 | ||
| Net interest income after provision | 3,163 | 3,822 | 4,277 | (43) | 6,984 | 3,908 | ||
| Non-interest income: | ||||||||
| Service charges on deposit accounts | 492 | 482 | 583 | 573 | 973 | 1,136 | ||
| Gain on sale of loans held for sale | 410 | 298 | 276 | 493 | 708 | 815 | ||
| Fees from brokerage services | 80 | 64 | 78 | 74 | 144 | 111 | ||
| Income from fiduciary activities | 449 | 472 | 451 | 406 | 921 | 754 | ||
| Gain on sale of securities held-for-sale | 582 | 683 | -- | 248 | 1,265 | 393 | ||
| Gain on sale of premises and equipment | -- | -- | 1 | -- | -- | -- | ||
| Other operating income | 563 | 1,358 | 592 | 444 | 1,923 | 888 | ||
| Total non-interest income | 2,576 | 3,357 | 1,981 | 2,238 | 5,934 | 4,097 | ||
| Non-interest expense: | ||||||||
| Salaries and employee benefits | 2,480 | 2,439 | 2,578 | 2,617 | 4,919 | 5,211 | ||
| Net occupancy expense | 321 | 322 | 342 | 320 | 654 | 640 | ||
| Amortization of intangible assets | 100 | 103 | 106 | 105 | 202 | 213 | ||
| Furniture and equipment expense | 188 | 203 | 209 | 223 | 380 | 455 | ||
| Loss on sale of securities held-for-sale | -- | -- | 172 | -- | -- | -- | ||
| FDIC banking assessments | 379 | 346 | 1,009 | 506 | 725 | 612 | ||
| FHLB prepayment penalties | -- | -- | 530 | -- | -- | -- | ||
| Write downs on other real estate | 358 | 40 | 800 | 1,162 | 398 | 1,238 | ||
| Loss on sale of fixed assets | -- | -- | -- | 21 | -- | 18 | ||
| Other operating expenses | 1,539 | 1,440 | 1,371 | 2,068 | 2,980 | 3,386 | ||
| Total non-interest expense | 5,365 | 4,893 | 7,117 | 7,022 | 10,258 | 11,773 | ||
| Income (loss) before taxes | 374 | 2,286 | (859) | (4,827) | 2,660 | (3,768) | ||
| Income tax expense (benefit) | 21 | 686 | 523 | (1,886) | 707 | (1,690) | ||
| Net income (loss) | $353 | $1,600 | $(1,382) | $(2,941) | $1,953 | $(2,078) | ||
| June 30, 2010 | March 31, 2010 | December 31, 2009 | June 30, 2009 | |||||
| (Dollars in thousands) | Balance | Percent | Balance | Percent | Balance | Percent | Balance | Percent |
| Loans: | ||||||||
| Commercial and agricultural | $39,787 | 7.63% | $38,487 | 7.01% | $35,082 | 6.18% | $38,705 | 6.29% |
| Real estate – construction | 110,522 | 21.19% | 128,110 | 23.33% | 145,130 | 25.59% | 176,534 | 28.71% |
| Real estate – mortgage and commercial | 306,061 | 58.69% | 312,246 | 56.88% | 316,571 | 55.82% | 330,782 | 53.79% |
| Home equity | 44,721 | 8.58% | 46,548 | 8.48% | 47,409 | 8.36% | 48,634 | 7.91% |
| Consumer – Installment | 19,109 | 3.66% | 22,344 | 4.07% | 21,564 | 3.80% | 18,840 | 3.06% |
| Other | 1,286 | 0.25% | 1,275 | 0.23% | 1,422 | 0.25% | 1,491 | 0.24% |
| Total | $521,486 | 100.00% | $549,010 | 100.00% | $567,178 | 100.00% | $614,986 | 100.00% |
| June 30, 2010 | March 31, 2010 | December 31, 2009 | June 30, 2009 | |||||
| (Dollars in thousands) | Balance | Percent | Balance | Percent | Balance | Percent | Balance | Percent |
| Deposits: | ||||||||
| Noninterest bearing demand | $108,332 | 18.40% | $101,462 | 17.54% | $112,333 | 19.25% | $105,696 | 18.56% |
| Interest bearing demand | 75,156 | 12.77% | 64,367 | 11.13% | 66,807 | 11.45% | 62,559 | 10.99% |
| Money market and savings | 177,823 | 30.20% | 175,471 | 30.33% | 166,086 | 28.47% | 139,677 | 24.53% |
| Brokered deposits | 11,849 | 2.01% | 25,880 | 4.47% | 27,200 | 4.66% | 46,561 | 8.18% |
| Certificates of deposit | 215,616 | 36.62% | 211,316 | 36.53% | 211,057 | 36.17% | 214,859 | 37.74% |
| Total | $588,776 | 100.00% | $578,496 | 100.00% | $583,483 | 100.00% | $569,352 | 100.00% |
| Wealth Management Group | ||||
| Fiduciary and Related Services: (Dollars in thousands, except number of accounts) | June 30, 2010 | March 31, 2010 | December 31, 2009 | June 30, 2009 |
| Market value of accounts | $561,868 | $540,791 | $505,031 | $438,929 |
| Market value of discretionary accounts | $197,215 | $201,320 | $188,663 | $167,760 |
| Market value of non-discretionary accounts | $364,653 | $339,471 | $316,368 | $271,169 |
| Total number of accounts | 1,384 | 1,505 | 1,440 | 1,315 |
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