updated 1/26/2011 4:16:10 PM ET 2011-01-26T21:16:10

GREENWOOD, S.C., Jan. 26, 2011 (GLOBE NEWSWIRE) -- Community Capital Corporation (Nasdaq:CPBK) reports operating results for the twelve months and quarter ended December 31, 2010.

  • Total risk based capital of 12.17% remains above the regulatory definition to be well capitalized of 10%
  • Allowance for loan losses coverage increased to 3.58% of gross loans as of December 31, 2010 from 2.64% at September 30, 2010
  • Loans past due 30 to 89 days to gross loans remains low at 0.32% at December 31, 2010, compared to 0.28% at September 30, 2010
  • Net interest margin increased 47 basis points from 2.79% for the quarter ended September 30, 2010 to 3.26% for the quarter ended December 31, 2010
  • Noninterest bearing deposits increased 2.09% in the fourth quarter of 2010 and comprise 20.82% of total deposits
  • Brokered deposits declined from $11.8 million at September 30, 2010 to $7.8 million at December 31, 2010 and now represent 1.6% of total deposits
  • Balance sheet contraction continues as we are utilizing cash on hand to fund the run off of higher priced CDs
  • Wealth Management Group assets increased 8.40% to $659 million at December 31, 2010 versus $607 million at September 30, 2010.
     

Community Capital Corporation today reported a net loss for the three months ended December 31, 2010 of $6,960,000, or $(0.70) per diluted share, compared to a net loss of $1,382,000, or $(0.15) per diluted share, for the same period in 2009.   The company recorded provision for loan losses of $12 million during the fourth quarter of 2010 compared to $1 million during the fourth quarter of 2009. 

Net loss for the twelve months ended December 31, 2010 was $5,485,000, or $(0.55) per diluted share, compared to $25,245,000, or $(4.34) per diluted share for the twelve months ended December 31, 2009. The company recorded a provision for loan losses of $18.4 million during 2010, compared to $32.8 million for the same period in 2009.   

Total assets decreased 12.48% to $655,934,000 at December 31, 2010 from $749,442,000 as of December 31, 2009, and decreased $31,770,000, or 4.62%, from $687,704,000 at September 30, 2010. Total loans decreased $87,785,000, or 15.48%, to $479,393,000 at December 31, 2010 from $567,178,000 at December 31, 2009, and decreased $25,115,000, or 4.98%, from $504,508,000 at September 30, 2010. Total deposits decreased $88,301,000, or 15.13%, to $495,182,000 at December 31, 2010 from $583,483,000 at December 31, 2009, and decreased $24,456,000, or 4.71%, from $519,638,000 at September 30, 2010. 

William G. Stevens, President/CEO of Community Capital Corporation, stated, "Our company has endured another challenging year. As compared to December 31, 2009, we ended 2010 with a significantly lower dollar amount of nonaccrual loans, an increase in loan loss reserve in excess of 20%, and an increase in total risk based and tangible capital to assets ratios. We are fortunate to have strong non-interest earning capabilities primarily with our rapidly growing wealth management function that now has $659 million in assets. Along with these balance sheet enhancements and consistent core earnings, we will continue our daily efforts to improve our asset quality and return our company to profitability." 

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 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; (2) our ability and success in resolving troubled loans; (3) adverse conditions in the stock market, the public debt market, and other capital markets (including changes in interest rate conditions); (4) changes in deposit rates, the net interest margin, and funding sources; (5) 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; (6) the challenges, costs and complications associated with the continued development of our branches; (7) changes in the U.S. legal and regulatory framework, including the effect of recent financial reform legislation on the banking industry; (8) our dependence on senior management; (9) 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; (10) risks inherent in making loans including repayment risks and value of collateral; (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 Three Months  Three Months  Twelve Months  Twelve Months 
(Dollars in thousands, except per share data) Ended Ended Ended Ended
  December 31, December 31, December 31, December 31,
  2010 2009 2010 2009
Earnings Summary (Unaudited) (Unaudited) (Unaudited) (Audited)
         
Interest income $7,218 $8,502 $31,010 $36,233
Interest expense 2,198 3,225 10,903 13,867
Net interest income 5,020 5,277 20,107 22,366
Provision for loan losses 12,000 1,000 18,350 32,800
Non-interest income 2,160 1,805 10,701 7,530
Non-interest expense 5,908 6,941 21,397 31,774
Income (loss) before taxes (10,728) (859) (8,939) (34,678)
Income tax expense (benefit) (3,768) 523 (3,454) (9,433)
Net income (loss) $(6,960) $(1,382) $(5,485) $(25,245)
         
Per Shares Ratios:        
Basic earnings (loss) per share  $ (0.70)  $ (0.15)  $ (0.55)  $ (4.34)
Diluted earnings (loss) per share  $ (0.70)  $ (0.15)  $ (0.55)  $ (4.34)
Dividends declared per share -- -- -- $0.15
Book value per share $4.73 $5.47 $4.73 $5.47
         
Common Share Data:        
Outstanding at period end 10,016,648 9,875,823 10,016,648 9,875,823
Weighted average outstanding 9,971,939 9,327,208 9,914,218 5,820,044
Diluted weighted average outstanding 9,971,939 9,327,208 9,914,218 5,820,044
         
Capital Ratios:        
Tier 1 leverage ratio 7.77% 8.31% 7.77% 8.31%
Tier 1 risk-based capital ratio 10.89% 10.88% 10.89% 10.88%
Total risk-based capital ratio 12.17% 12.15% 12.17% 12.15%
Tangible equity to tangible assets (period end) 7.12% 6.99% 7.12% 6.99%
           
           
Balance Sheet Highlights Three Months  Three Months  Three Months  Twelve Months  Twelve Months 
(Dollars in thousands) Ended Ended Ended Ended Ended
  December 31, September 30, December 31, December 31, December 31,
  2010 2010 2009 2010 2009
Average Balances: (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Total assets $677,334 $734,956 $749,170 $728,346 $774,665
Earning assets 615,280 673,392 708,038 666,856 716,220
Loans 497,550 517,941 596,492 528,403 617,311
Deposits 509,186 566,325 572,368 560,297 550,035
Interest bearing deposits 408,113 460,761 467,712 455,101 451,022
Noninterest bearing deposits 101,073 105,564 104,656 105,196 99,013
Other borrowings 95,400 95,400 99,748 95,400 143,470
Junior subordinated debentures 10,310 10,310 10,310 10,310 10,310
Shareholders' equity 55,316 55,976 58,028 55,293 62,711
           
Performance Ratios:          
Return on average assets (4.08)% (0.26)% (0.73)% (0.75)% (3.28)%
Return on average shareholders' equity (49.92)% (3.39)% (9.45)% (9.92)% (40.26)%
Net interest margin  3.26% 2.79% 3.00% 3.05% 3.18%
(fully tax equivalent at 38%)          
Efficiency ratio 81.89% 82.45% 94.54% 73.87% 105.37%
           
  Three Months Three Months Three Months  Twelve Months  Twelve Months
  Ended Ended Ended Ended Ended
  December 31, September 30, December 31, December 31, December 31,
  2010 2010 2009 2010 2009
  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Asset Quality:          
Nonperforming loans  $27,531 $27,896 $42,826 $27,531 $42,826
Other real estate 13,496 14,452 7,165 13,496 7,165
 Total nonperforming assets 41,027 42,348 49,991 41,027 49,991
Total impaired loans 39,385 78,104 71,956 39,385 71,956
Total performing troubled debt restructurings 3,436 6,147 1,588 3,436 1,588
Net charge-offs/write-downs 8,148 2,614 24,783 15,345 32,257
Net charge-offs/write-downs to average loans 1.64% 0.50% 4.15% 2.90% 5.23%
Allowance for loan losses to nonperforming loans          
  62.35% 47.72% 33.06% 62.35% 33.06%
Nonperforming loans to total loans 5.74% 5.53% 7.55% 5.74% 7.55%
Nonperforming assets to total assets 6.25% 6.16% 6.67% 6.25% 6.67%
Allowance for loan losses to period end loans 3.58% 2.64% 2.50% 3.58% 2.50%
           
Other Selected Ratios:          
Average equity to average assets 8.17% 7.61% 7.75% 7.59% 8.10%
Average loans to average deposits 97.71% 91.46% 104.21% 94.31% 112.23%
Average loans to average earning assets 80.87% 76.92% 84.25% 79.24% 86.19%
       
       
Balance Sheet Data      
(Dollars in thousands) December 31, September 30, December 31,
  2010 2010 2009
  (Unaudited) (Unaudited) (Audited)
Assets:      
Cash and cash equivalents:      
 Cash and due from banks $9,315 $11,332 $10,141
 Interest bearing deposit accounts 27,860 49,237 38,990
 Total cash and cash equivalents 37,175 60,569 49,131
Investment securities:      
 Securities held-for-sale 74,025 55,422 68,826
 Securities held-to-maturity -- -- 160
 Nonmarketable equity securities 9,626 9,930 10,186
 Total investment securities 83,651 65,352 79,172
Loans held for sale 5,516 5,419 1,103
Loans receivable 479,393 504,508 567,178
Allowance for loan losses   (17,165)   (13,313)   (14,160)
Other real estate owned 13,496 14,452 7,165
Premises and equipment, net  15,342 15,521 16,150
Prepaid expenses 3,349 3,662 4,873
Intangible assets 1,259 1,360 1,663
Cash surrender value of life insurance 17,397 17,211 16,689
Deferred tax asset 8,992 6,093 6,622
Income tax receivable -- -- 9,634
Other assets 7,529 6,870 4,222
  Total assets $655,934 $687,704 $749,442
       
Liabilities and shareholders' equity:      
Deposits:      
 Noninterest bearing $103,080 $100,965 $112,333
 Interest bearing 392,102 418,673 471,150
 Total deposits 495,182 519,638 583,483
FHLB advances 95,400 95,400 95,400
Junior subordinated debentures 10,310 10,310 10,310
Other liabilities 7,638 7,227 6,492
Total liabilities $608,530 $632,575 $695,685
       
Shareholders' equity:      
Common stock: $1 par value; 20 million shares authorized $10,721 $10,721 $10,721
Nonvested restricted stock (116) (175) (364)
Capital surplus 64,679 65,244 66,473
Accumulated other comprehensive income (loss) (460) 352 909
Retained earnings (deficit) (17,190) (10,230) (11,705)
Treasury stock, at cost (10,231) (10,783) (12,277)
Total shareholders' equity 47,404 55,129 53,757
Total liabilities and shareholders' equity $655,934 $687,704 $749,442
           
           
Income Statement Data Three Months

Ended
Three Months

Ended
Three Months

Ended
Twelve Months

Ended
Twelve Months

Ended
(Dollars in thousands) December 31, September 30, December 31, December 31, December 31,
  2010 2010 2009 2010 2009
  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Interest income:          
Interest and fees on loans $6,722 $6,995 $7,644 $28,559 $32,722
Interest on investment securities 458 422 839 2,286 3,460
Interest on federal funds sold and interest-bearing deposits  38 66 19 165 51
 Total interest income 7,218 7,483 8,502 31,010 36,233
           
Interest expense:          
Interest on deposits 1,171 1,758 2,031 6,832 7,894
Interest on borrowings 1,027 1,033 1,194 4,071 5,973
 Total interest expense 2,198 2,791 3,225 10,903 13,867
           
Net interest income 5,020 4,692 5,277 20,107 22,366
Provision for loan loss 12,000 2,750 1,000 18,350 32,800
Net interest income (loss) after provision          
  (6,980) 1,942 4,277 1,757 (10,434)
Non-interest income:          
Service charges on deposit accounts 408 441 583 1,822 2,313
Gain on sale of loans held for sale 648 519 276 1,875 1,450
Fees from brokerage services 116 69 78 329 263
Income from fiduciary activities 508 507 451 1,936 1,623
Gain on sale of securities held-for-sale          
  6 728 -- 1,999 224
Gain on sale of fixed assets -- -- 1 -- --
Other operating income 474 478 416 2,740 1,657
 Total non-interest income 2,160 2,742 1,805 10,701 7,530
Non-interest expense:          
Salaries and employee benefits 2,650 2,521 2,578 10,090 10,389
Net occupancy expense 302 334 342 1,260 1,298
Amortization of intangible assets 101 101 106 404 427
Goodwill impairment -- -- -- -- 7,418
Furniture and equipment expense 174 179 209 764 875
FDIC banking assessments 454 516 1,009 1,694 1,863
FHLB prepayment penalties -- -- 537 -- 896
Net cost of operation of other real estate owned          
  884 543 767 2,287 3,532
Loss on sale of securities available for sale -- -- 172 -- --
Loss on sale of fixed assets -- -- -- -- 38
Other operating expenses 1,343 1,362 1,221 4,898 5,038
 Total non-interest expense 5,908 5,556 6,941 21,397 31,774
Income (loss) before taxes (10,728) (872) (859) (8,939) (34,678)
Income tax expense (benefit) (3,768) (394) 523 (3,454) (9,433)
Net income (loss)  $ (6,960)  $ (478)  $ (1,382)  $ (5,485)  $ (25,245)
       
       
       
Loan Composition: December 31, 2010 September 30, 2010 December 31, 2009
(Dollars in thousands) Balance Percent Balance Percent Balance Percent
             
Commercial and agricultural $39,720 8.29% $42,177 8.36% $35,082 6.18%
Real estate – construction 99,076 20.66% 105,812 20.97% 145,130 25.59%
Real estate – mortgage and commercial 279,560 58.32% 294,036 58.28% 316,571 55.82%
Home equity 42,167 8.79% 43,158 8.56% 47,409 8.36%
Consumer – Installment 17,636 3.68% 18,009 3.57% 21,564 3.80%
Other 1,234 0.26% 1,316 0.26% 1,422 0.25%
 Total $479,393 100.00% $504,508 100.00% $567,178 100.00%
             
       
Deposits: December 31, 2010 September 30, 2010 December 31, 2009
(Dollars in thousands) Balance Percent Balance Percent Balance Percent
             
Noninterest bearing demand  $103,080 20.82% $100,965 19.43% $112,333 19.25%
Interest bearing demand 63,024 12.73% 70,800 13.62% 66,807 11.45%
Money market and savings  175,890 35.52% 180,553 34.75% 166,086 28.47%
Brokered deposits 7,849 1.58% 11,849 2.28% 27,200 4.66%
Certificates of deposit 145,339 29.35% 155,471 29.92% 211,057 36.17%
 Total $495,182 100.00% $519,638 100.00% $583,483 100.00%
       
       
Wealth Management Group  December 31, 2010 September 30, 2010 December 31, 2009
 Fiduciary and Related Services: 

(Dollars in thousands, except 

number of accounts)
     
       
Market value of accounts $658,502 $607,433 $505,031
Market value of discretionary accounts $219,628 $207,498 $188,663
Market value of non-discretionary accounts $438,874 $399,935 $316,368
Total number of accounts 1,473 1,441 1,440
     
     
Yield/Rate Analysis QTD Three Months Ended Three Months Ended
  December 31, 2010 December 31, 2009
  Average   Yield/ Average   Yield/
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
ASSETS            
Loans(1)(3) $497,550 $6,729 5.37% $596,492 $7,652 5.09%
Securities, taxable(2) 56,175 336 2.37% 50,438 585 4.60%
Securities, nontaxable(2)(3) 10,918 122 4.43% 20,192 295 5.80%
Nonmarketable Equity Securities 9,772 33 1.34% 10,186 39 1.52%
Fed funds sold and other (incl. FHLB) 40,864 39 0.38% 30,370 19 0.25%
 Total earning assets $615,279 $7,259 4.68% $708,038 $8,590 4.81%
Non-earning assets 62,055     41,132    
 Total assets $677,334     $749,170    
             
LIABILITIES AND             
STOCKHOLDERS' EQUITY            
Transaction accounts $204,400 $397 0.77% $186,748 $523 1.11%
Regular savings accounts 42,942 100 0.92% 42,120 151 1.42%
Certificates of deposit  160,771 674 1.66% 238,844 1,357 2.25%
Other short term borrowings -- --  --  -- --  0.00%
FHLB Advances 95,400 833 3.46% 99,748 1,013 4.03%
Junior subordinate debentures 10,310 194 7.47% 10,310 181 6.97%
 Total interest-bearing liabilities $513,823 $2,198 1.70% $577,770 $3,225 2.21%
Non-interest bearing liabilities 98,195     113,372    
Stockholders' equity 55,316     58,028    
 Total liabilities & equity $667,334     $749,170    
             
Net interest income/            
 interest rate spread   $5,061 2.98%   $5,365 2.60%
             
Net yield on earning assets     3.26%     3.00%
     
     
Yield/Rate Analysis YTD Twelve Months Ended Twelve Months Ended
  December 31, 2010 December 31, 2009
  Average   Yield/ Average   Yield/
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
ASSETS            
Loans(1)(3) $528,403 $25,587 5.41% $617,311 $32,753 5.31%
Securities, taxable(2) 51,443 1,650 3.21% 46,768 2,254 4.82%
Securities, nontaxable(2)(3) 13,355 684 5.12% 23,806 1,461 6.14%
Nonmarketable Equity Securities 10,131 140 1.38% 6,111 147 2.41%
Fed funds sold and other (incl. FHLB) 63,524 165 0.26% 22,224 51 0.23%
 Total earning assets $666,856 $31,226 4.68% $716,220 $36,666 5.12%
Non-earning assets 61,490     58,445    
 Total assets $728,346     $774,665    
             
LIABILITIES AND             
STOCKHOLDERS' EQUITY            
Transaction accounts $200,331 $2,060 1.03% $192,222 $1,615 0.84%
Regular savings accounts 44,325 519 1.17% 40,125 655 1.63%
Certificates of deposit  210,450 4,253 2.02% 218,675 5,624 2.57%
Other short term borrowings --  --  -- 17,901 57 0.32%
FHLB Advances 95,400 3,323 3.48% 125,569 5,190 4.13%
Junior subordinate debentures 10,310 748 7.26% 10,310 726 7.04%
 Total interest-bearing liabilities $560,816 $10,903 1.94% $604,802 $13,867 2.29%
Non-interest bearing liabilities 112,237     107,152    
Stockholders' equity 55,293     62,711    
 Total liabilities & equity $728,346     $774,665    
             
Net interest income/            
 interest rate spread   $20,323 2.74%   $22,799 2.83%
             
Net yield on earning assets     3.05%     3.18%
             
             
(1)  The effect of loans in nonaccrual status and fees collected is not significant to the computations.
(2)  Average investment securities exclude the valuation allowance on securities available-for-sale.
(3)  Fully tax-equivalent basis at 38% tax rate for nontaxable securities and loans.
CONTACT: R. Wesley Brewer, Executive Vice President/CFO
         864-941-8290 or email: wbrewer@capitalbanksc.com
         
         Lee Lee M. Lee, Controller/VP of Investor Relations
         864-941-8242 or email: llee@capitalbanksc.com
         www.comcapcorp.com

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 1.97%
$30K home equity loan FICO 5.80%
$75K home equity loan FICO 4.54%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.70%
13.70%
Cash Back Cards 17.66%
17.91%
Rewards Cards 17.05%
17.17%
Source: Bankrate.com