COMMUNITY CAPITAL CORPORATION 
By Community Capital Corporation (NASDAQ: CPBK) reports operating results for fourth quarter and year ended December 31, 2006.
Total assets increased 19 percent to $712,563,000 at December 31, 2006 from $598,790,000 at December 31, 2005. Total loans increased $108,300,000, or 23 percent to $574,192,000 at December 31, 2006, compared to $465,892,000 at December 31, 2005. Total deposits increased $53,310,000, or 12 percent to $486,956,000 at December 31, 2006 from $433,646,000 at December 31, 2005. Shareholders' equity at December 31, 2006 was $58,926,000, compared to $54,505,000 at December 31, 2005, resulting in an increase of eight percent. Year to date return on average assets was 0.87 percent compared to 1.24 percent for the same period in 2005. Return on equity was 10.05 percent compared to 12.74 percent in 2005.
Pro forma net income for the three months ended December 31, 2006 increased one percent to $1,588,000 or $0.42 per diluted share, from $1,571,000 or $0.41 per diluted share. 1 Net income for the three months ended December 31, 2006 was $1,544,000, a decrease of 33 percent from $2,292,000 reported in the same period last year. Diluted earnings per share for the quarter were $0.40, compared to $0.60 reported in 2005. Return on average assets was 0.87 percent for the fourth quarter of 2006 compared to 1.56 percent for the same period in 2005. Return on average equity for the fourth quarter was 10.41 percent compared to 16.53 percent in 2005.
Pro forma earnings per share decreased seven percent from $1.63 for the twelve months ended December 31, 2005 to $1.52 for the twelve months ended 2006. 1 Pro forma net income decreased from $6,373,000 at December 31, 2005 to $5,798,000 at December 31, 2006. Net income for the twelve months ended December 31, 2006 was $5,759,000 versus $7,094,000, a decrease of 19 percent. Diluted earnings per share for the period were $1.51, down from $1.82 reported in 2005.
The company also declared a quarterly cash dividend of $0.15 per share, which is payable by March 2, 2007 to shareholders of record as of February 16, 2007. 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 September 30, 2006.
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INCOME STATEMENT DATA (Dollars in thousands, except per share data) | Three Months Ended December 31 | Year Ended December 31 | ||||
| 2006 | 2005 | 2006 | 2005 | |||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||
| Interest income | 11,248 | 8,347 | 40,679 | 30,878 | ||
| Interest expense | 5,796 | 3,172 | 19,625 | 10,958 | ||
| Net interest income | 5,452 | 5,175 | 21,054 | 19,920 | ||
| Provision for loan losses | 340 | 400 | 1,140 | 825 | ||
| Net int. income after provision | 5,112 | 4,775 | 19,914 | 19,095 | ||
| Non-interest income: | ||||||
| Service charges on deposit accounts | 666 | 726 | 2,627 | 3,035 | ||
| Residential mortgage origination fees | 234 | 152 | 760 | 828 | ||
| Commissions from sales of mutual funds | 31 | 35 | 245 | 178 | ||
| Income from fiduciary activities | 330 | 243 | 1,177 | 901 | ||
| Gain on sales of marketable equity securities | - | 1,092 | - | 1,092 | ||
| Gain on sales of fixed assets | - | - | 2 | 101 | ||
| Other operating income | 368 | 219 | 1,217 | 1,258 | ||
| Non-interest expense: | ||||||
| Salaries and employee benefits | 2,756 | 2,434 | 10,687 | 9,723 | ||
| Net occupancy expense | 278 | 216 | 1,113 | 977 | ||
| Amortization of intangible assets | 123 | 128 | 492 | 515 | ||
| Furniture and equipment expense | 205 | 276 | 838 | 945 | ||
| Loss on sales of securities available-for-sale | 67 | - | 61 | 66 | ||
| Loss on sales of fixed assets | - | 1 | - | - | ||
| Other operating expenses | 1,191 | 975 | 4,974 | 4,689 | ||
| Income before taxes | 2,121 | 3,212 | 7,777 | 9,573 | ||
| Income tax expense | 577 | 920 | 2,018 | 2,479 | ||
| Net income | 1,544 | 2,292 | 5,759 | 7,094 | ||
| Primary earnings per share | $0.41 | $0.62 | $1.54 | $1.87 | ||
| Diluted earnings per share | $0.40 | $0.60 | $1.51 | $1.82 | ||
| Average shares outstanding (fully diluted) | 3,813,702 | 3,803,333 | 3,811,737 | 3,909,751 | ||
| Return on average assets | 0.87% | 1.56% | 0.87% | 1.24% | ||
| Return on average equity | 10.41% | 16.53% | 10.05% | 12.74% | ||
| Net interest income (fully tax equivalent at 38%) | 5,580 | 5,312 | 21,568 | 20,471 | ||
| Net interest margin (fully tax equivalent at 38%) | 3.44% | 3.98% | 3.60% | 3.94% | ||
| Efficiency ratio | 63.17% | 61.02% | 65.61% | 63.17% | ||
| BALANCE SHEET DATA (Dollars in thousands, except per share data) | December 31 | December 31 | |
| 2006 | 2005 | ||
| (Unaudited) | |||
| Total assets | 712,563 | 598,790 | |
| Investment securities | 73,950 | 75,887 | |
| Loans | 574,192 | 465,892 | |
| Allowance for loan losses | 6,200 | 6,324 | |
| Total intangible assets | 10,427 | 10,918 | |
| Total deposits | 486,956 | 433,646 | |
| Other borrowings | 150,907 | 106,324 | |
| Junior subordinated debentures | 10,310 | - | |
| Shareholders' equity | 58,926 | 54,505 | |
| Book value per share | $15.55 | $14.63 | |
| Equity to assets | 8.27% | 9.10% | |
| Loan to deposit ratio | 117.91% | 107.44% | |
| Allowance for loan losses/loans | 1.08% | 1.36% |
| Average Balances |
Three Months Ended December 31 | Year Ended December 31 | |||||
| 2006 | 2005 | 2006 | 2005 | ||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||
| Average total assets | 704,790 | 583,491 | 660,990 | 571,157 | |||
| Average loans | 564,201 | 447,044 | 522,520 | 437,890 | |||
| Average earning assets | 642,929 | 529,726 | 599,900 | 519,720 | |||
| Average deposits | 486,291 | 440,103 | 470,890 | 431,713 | |||
| Average interest bearing deposits | 422,504 | 379,477 | 407,819 | 375,652 | |||
| Average non-interest bearing deposits | 63,787 | 60,626 | 63,071 | 56,061 | |||
| Average other borrowings | 143,529 | 82,933 | 121,717 | 79,799 | |||
| Average junior subordinated debentures | 10,310 | - | 5,649 | - | |||
| Average shareholders' equity | 58,797 | 55,363 | 57,297 | 55,796 | |||
| Asset quality | |||||||
| Non-performing loans | 2,205 | 2,351 | 2,205 | 2,351 | |||
| Other real estate | 134 | 93 | 134 | 93 | |||
| Loans past due 90+ days | 489 | 222 | 489 | 222 | |||
| Net charge-offs | 289 | 94 | 1,263 | 309 | |||
| Net charge-offs to average loans | 0.05% | 0.02% | 0.24% | 0.07% | |||
Footnote 1
| Pro Forma Earnings Reconciliation |
Three Months Ended December 31 | Twelve Months Ended December 31 | |||||||||||||||||||||||||||||||
| 2006 | 2005 | 2006 | 2005 | ||||||||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||||||||||||
| Net income before one time items | 1,544 | 2,292 | 5,759 | 7,094 | |||||||||||||||||||||||||||||
| Loss on the sale of securities | 67 | 61 | |||||||||||||||||||||||||||||||
| Gain on the sale of fixed assets | - | (2) | |||||||||||||||||||||||||||||||
| Gain on the sale of marketable equity securities | - | (1,092) | - | (1,092) | |||||||||||||||||||||||||||||
| Total non-recurring items before tax | 67 | (1,092) | 59 | (1,092) | |||||||||||||||||||||||||||||
| Tax adjustment on one time items | (23) | 371 | (20) | 371 | |||||||||||||||||||||||||||||
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© Business Wire - 2007
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