Community Capital Corporation (NASDAQ: CPBK) reports operating results for the six months and quarter ending June 30, 2006.

Total assets increased 17 percent to $674,562,000 at June 30, 2006 from $576,259,000 at June 30, 2005. Total loans increased $87,193,000, or 20 percent to $528,566,000 at June 30, 2006, compared to $441,373,000 at June 30, 2005. Total deposits increased $48,784,000, or 11 percent to $481,478,000 at June 30, 2006 from $432,694,000 at June 30, 2005. Shareholders' equity at June 30, 2006 was $56,467,000 compared to $56,931,000 at June 30, 2005. Year to date return on average assets was 0.97 percent compared to 1.14 percent for the same period in 2005. Return on equity was 10.84 percent compared to 11.48 percent in 2005.

Net income for the three months ended June 30, 2006 was $1,548,000, a decrease of five percent from $1,629,000 reported in the same period last year. Diluted earnings per share for the quarter were $0.41, compared to $0.41 reported in 2005. Return on average assets was 0.97 percent for the second quarter of 2006 compared to 1.16 percent for the same period in 2005. Return on average equity for the second quarter was 11.05 percent compared to 11.63 percent in 2005.

Net income for the six months ended June 30, 2006 was $3,021,000 versus $3,162,000, a decrease of four percent. Diluted earnings per share for the period were $0.79, down from $0.80 reported in 2005.

William G. Stevens, President and Chief Executive Officer, stated "We continue to achieve our strategy of growing earning assets at an accelerated pace while maintaining high standards for loan portfolio quality. This quarter marks the third consecutive quarter that we have increased loans outstanding in excess of 20 percent annualized. Although this growth strategy has created pressure on our margin, we are pleased with the corresponding increase in net interest income."

The company also declared a quarterly cash dividend of $0.15 per share, which is payable by September 1, 2006 to shareholders of record as of August 18, 2006. Community Capital Corporation has a dividend reinvestment and additional stock purchase plan. Information on the plan may be obtained from Registrar and Transfer Company, the plan administrator, at 800-368-5948.

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 and wealth management services. 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 March 31, 2006. -0- *T INCOME STATEMENT DATA (Dollars in thousands, Three Months Ended Six Months Ended except per share data) June 30 June 30 ---------------------------------------------------------------------- 2006 2005 2006 2005 -------------------------- ---------- ---------- ---------- ---------- ---------------------------------------------------------------------- Interest income 9,847 7,501 18,735 14,589 -------------------------- ---------- ---------- ---------- ---------- Interest expense 4,684 2,595 8,541 4,945 -------------------------- ---------- ---------- ---------- ---------- Net interest income 5,163 4,906 10,194 9,644 -------------------------- ---------- ---------- ---------- ---------- Provision for loan losses 150 100 150 200 -------------------------- ---------- ---------- ---------- ---------- Net int. income after provision 5,013 4,806 10,044 9,444 -------------------------- ---------- ---------- ---------- ---------- Non-interest income: ------------------------------------------------------------------ Service charges on deposit accounts 665 793 1,287 1,523 -------------------------- ---------- ---------- ---------- ---------- Residential mortgage origination fees 172 221 337 399 -------------------------- ---------- ---------- ---------- ---------- Commissions from sales of mutual funds 87 54 108 93 -------------------------- ---------- ---------- ---------- ---------- Income from fiduciary activities 272 204 545 410 -------------------------- ---------- ---------- ---------- ---------- Gain on sales of securities available-for-sale 6 - 6 - -------------------------- ---------- ---------- ---------- ---------- Gain on sales of fixed assets - 124 2 124 -------------------------- ---------- ---------- ---------- ---------- Other operating income 255 325 532 647 -------------------------- ---------- ---------- ---------- ---------- Non-interest expense: ------------------------------------------------------------------ Salaries and employee benefits 2,616 2,484 5,187 4,811 -------------------------- ---------- ---------- ---------- ---------- Net occupancy expense 272 234 552 480 -------------------------- ---------- ---------- ---------- ---------- Amortization of intangible assets 121 127 246 258 -------------------------- ---------- ---------- ---------- ---------- Furniture and equipment expense 215 240 412 471 -------------------------- ---------- ---------- ---------- ---------- Loss on sales of securities available-for-sale - 107 - 86 -------------------------- ---------- ---------- ---------- ---------- Other operating expenses 1,208 1,298 2,443 2,428 -------------------------- ---------- ---------- ---------- ---------- Income before taxes 2,038 2,037 4,021 4,106 -------------------------- ---------- ---------- ---------- ---------- Income tax expense 490 408 1,000 944 -------------------------- ---------- ---------- ---------- ---------- Net income 1,548 1,629 3,021 3,162 -------------------------- ---------- ---------- ---------- ---------- ------------------------------------------------------------------ Primary earnings per share $ 0.41 $ 0.42 $ 0.81 $ 0.82 -------------------------- ---------- ---------- ---------- ---------- Diluted earnings per share $ 0.41 $ 0.41 $ 0.79 $ 0.80 -------------------------- ---------- ---------- ---------- ---------- ------------------------------------------------------------------ ------------------------------------------------------------------ Average shares outstanding (fully diluted) 3,815,199 3,964,609 3,808,814 3,962,189 -------------------------- ---------- ---------- ---------- ---------- Return on average assets 0.97% 1.16% 0.97% 1.14% -------------------------- ---------- ---------- ---------- ---------- Return on average equity 11.05% 11.63% 10.84% 11.48% -------------------------- ---------- ---------- ---------- ---------- Net interest income (fully tax equivalent at 38%) 5,291 5,045 10,454 9,925 -------------------------- ---------- ---------- ---------- ---------- Net interest margin (fully tax equivalent at 38%) 3.68% 3.95% 3.70% 3.93% -------------------------- ---------- ---------- ---------- ---------- Efficiency ratio 65.73% 65.98% 66.65% 65.00% -------------------------- ---------- ---------- ---------- ---------- BALANCE SHEET DATA (Dollars in thousands, except per share data) June 30 Dec. 31 June 30 ---------------------------------------------------------------------- 2006 2005 2005 ----------------------------------------- -------- -------- -------- (Unaudited) -------------------------------------------------------------------- Total assets 674,562 598,790 576,259 ----------------------------------------- -------- -------- -------- Investment securities 74,602 75,887 81,377 ----------------------------------------- -------- -------- -------- Loans 528,566 465,892 441,373 ----------------------------------------- -------- -------- -------- Allowance for loan losses 6,146 6,324 5,968 ----------------------------------------- -------- -------- -------- Total intangible assets 10,672 10,918 11,175 ----------------------------------------- -------- -------- -------- Total deposits 481,478 433,646 432,694 ----------------------------------------- -------- -------- -------- Other borrowings 121,275 106,324 82,544 ----------------------------------------- -------- -------- -------- Junior subordinated debentures 10,310 - - ----------------------------------------- -------- -------- -------- Shareholders' equity 56,467 54,505 56,931 ----------------------------------------- -------- -------- -------- ------------------------------------------------------------------- Book value per share $ 14.93 $ 14.63 $ 14.62 ----------------------------------------- -------- -------- -------- Equity to assets 8.37% 9.10% 9.88% ----------------------------------------- -------- -------- -------- Loan to deposit ratio 109.78% 107.44% 102.01% ----------------------------------------- -------- -------- -------- Allowance for loan losses/loans 1.16% 1.36% 1.35% ----------------------------------------- -------- -------- -------- Average Balances Three Months Six Months Ended Ended June 30 June 30 ---------------------------------------------------------------------- 2006 2005 2006 2005 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Average total assets 646,656 562,772 630,477 559,311 ---------------------------------------------------------------------- Average loans 508,549 433,784 492,902 431,389 ---------------------------------------------------------------------- Average earning assets 583,356 512,717 570,173 509,693 ---------------------------------------------------------------------- Average deposits 469,452 429,686 457,841 422,864 ---------------------------------------------------------------------- Average interest bearing deposits 405,019 375,132 395,250 370,757 ---------------------------------------------------------------------- Average non-interest bearing deposits 64,433 54,554 62,591 52,107 ---------------------------------------------------------------------- Average other borrowings 113,281 73,581 110,647 77,868 ---------------------------------------------------------------------- Average shareholders' equity 56,823 56,183 56,202 55,557 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Asset quality ---------------------------------------------------------------------- ---------------------------------------------------------------------- Non-performing loans 2,428 2,615 2,428 2,615 ---------------------------------------------------------------------- Other real estate 4 98 4 98 ---------------------------------------------------------------------- Loans past due 90+ days 148 244 148 244 ---------------------------------------------------------------------- Net charge-offs 66 7 328 40 ---------------------------------------------------------------------- Net charge-offs to average loans 0.01% 0.00% 0.07% 0.01% ---------------------------------------------------------------------- *T