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

Total assets increased 18 percent to $686,550,000 at September 30, 2006 from $579,540,000 at September 30, 2005. Total loans increased $110,617,000, or 25 percent to $549,065,000 at September 30, 2006, compared to $438,448,000 at September 30, 2005. Total deposits increased $39,446,000, or nine percent to $479,921,000 at September 30, 2006 from $440,475,000 at September 30, 2005. Shareholders' equity at September 30, 2006 was $57,555,000, compared to $55,750,000 at September 30, 2005. Year to date return on average assets was 0.87 percent compared to 1.14 percent for the same period in 2005. Return on equity was 9.92 percent compared to 11.52 percent in 2005.

Net income for the three months ended September 30, 2006 was $1,194,000, a decrease of 27 percent from $1,640,000 reported in the same period last year. Diluted earnings per share for the quarter were $0.31, compared to $0.42 reported in 2005. Return on average assets was 0.70 percent for the third quarter of 2006 compared to 1.13 percent for the same period in 2005. Return on average equity for the third quarter was 8.17 percent compared to 11.60 percent in 2005.

Net income for the nine months ended September 30, 2006 was $4,215,000 versus $4,802,000, a decrease of 12 percent. Diluted earnings per share for the period were $1.11, down from $1.22 reported in 2005.

William G. Stevens, President and Chief Executive Officer, stated ?Because we found it necessary to elevate our level of loan loss protection for the third quarter, our earnings did not meet our expectations. This funding was necessitated by our continued growth in loans outstanding as well as to provide coverage for an increase in charge offs and nonperforming loans. However, our net charge off and nonperforming asset levels remain in line with our peers.?

The company also declared a quarterly cash dividend of $0.15 per share, which is payable by December 1, 2006 to shareholders of record as of November 17, 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 June 30, 2006.

INCOME STATEMENT DATA

(Dollars in thousands, except per share data)

Three Months Ended

September 30

Nine Months Ended

September 30

  2006  2005  2006  2005 
  (Unaudited)   (Unaudited)  
Interest income 10,696  7,942  29,431  22,531 
Interest expense 5,288  2,841  13,829  7,786 
Net interest income 5,408  5,101  15,602  14,745 
Provision for loan losses 650  225  800  425 
Net int. income after provision 4,758  4,876  14,802  14,320 
Non-interest income:        
Service charges on deposit accounts 674  786  1,961  2,309 
Residential mortgage origination fees 189  277  526  676 
Commissions from sales of mutual funds 106  50  214  143 
Income from fiduciary activities 302  248  847  658 
Gain on sales of securities available-for-sale -  20  6  - 
Gain on sales of fixed assets -  -  2  102 
Other operating income 317  262  849  909 
Non-interest expense:        
Salaries and employee benefits 2,744  2,478  7,931  7,289 
Net occupancy expense 283  249  835  729 
Amortization of intangible assets 123  129  369  387 
Furniture and equipment expense 221  230  633  701 
Loss on sales of securities available-for-sale -  -  -  66 
Loss on sales of fixed assets -  22  -  - 
Other operating expenses 1,340  1,156  3,783  3,584 
Income before taxes 1,635  2,255  5,656  6,361 
Income tax expense 441  615  1,441  1,559 
Net income 1,194  1,640  4,215  4,802 
         
Primary earnings per share $0.32  $0.43  $1.13  $1.25 
Diluted earnings per share $0.31  $0.42  $1.11  $1.22 
         
         
Average shares outstanding (fully diluted) 3,811,894  3,912,949  3,813,464  3,945,601 
Return on average assets 0.70% 1.13% 0.87% 1.14%
Return on average equity 8.17% 11.60% 9.92% 11.52%
Net interest income (fully tax equivalent at 38%) 5,534  5,233  15,988  15,158 
Net interest margin (fully tax equivalent at 38%) 3.57% 3.96% 3.65% 3.94%
Efficiency ratio 66.13% 61.86% 66.47% 63.91%
BALANCE SHEET DATA

(Dollars in thousands, except per share data)

September 30

December 31 September 30
  2006  2005  2005 
  (Unaudited)    
Total assets 686,550  598,790  579,540 
Investment securities 74,743  75,887  79,732 
Loans 549,065  465,892  438,448 
Allowance for loan losses 6,149  6,324  6,018 
Total intangible assets 10,549  10,918  11,047 
Total deposits 479,921  433,646  440,475 
Other borrowings 132,393  106,324  79,112 
Junior subordinated debentures 10,310  -  - 
Shareholders' equity 57,555  54,505  55,750 
       
Book value per share $15.22  $14.63  $14.82 
Equity to assets 8.38% 9.10% 9.62%
Loan to deposit ratio 114.41% 107.44% 99.54%
Allowance for loan losses/loans 1.12% 1.36% 1.37%
Average Balances Three Months Ended

September 30

Nine Months Ended

September 30

  2006  2005  2006  2005 
  (Unaudited)   (Unaudited)  
Average total assets 677,918  575,878  646,668  564,894 
Average loans 539,111  441,258  508,474  434,715 
Average earning assets 615,436  523,777  585,400  514,439 
Average deposits 481,394  435,949  465,778  427,273 
Average interest bearing deposits 418,010  377,332  402,948  372,972 
Average non-interest bearing deposits 63,384  58,617  62,830  54,301 
Average other borrowings 121,682  79,561  114,366  78,439 
Average shareholders' equity 57,156  56,088  56,128  55,736 
         
Asset quality        
         
Non-performing loans 3,935  2,111  3,935  2,111 
Other real estate 63  127  63  127 
Loans past due 90+ days 1,313  50  1,313  50 
Net charge-offs 647  174  975  214 
Net charge-offs to average loans 0.12% 0.04% 0.19% 0.05%