Contacts:
Community Central Bank Corp. - Ray Colonius - P:586 783-4500
Marcotte Financial Relations - Mike Marcotte - P:248 656-3873
COMMUNITY CENTRAL BANK CORPORATION POSTS STRONG Q2 EARNINGS | For Immediate Release |
Second Quarter 2003 Highlights
- Q2 2003 earnings up 25.8% over Q2 2002
- Total assets top $323 million
- Acquisition announcement of North Oakland Community Bank
- Solid deposit and loan growth
- Strong residential mortgage originations
- Five cents per share dividend paid
MOUNT CLEMENS,Mich., July 31, 2003 -- Community Central Bank Corporation (NNM:CCBD),the holding company forCommunity Central Bank, posted increased earnings for the second quarter ended June 30, 2003, David A. Widlak, Chairman and Chief Executive Officer, reported today.
Net income for the second quarter of 2003 rose 25.8% to $527,000, or $0.20 per diluted share, from $419,000, or $0.16 per diluted share for the second quarter 2002. Year to date net income increased 18.6% to $1,001,000, or $0.37 per diluted share, from $844,000, or $0.32 per diluted share, for the first six months of 2002.
At June 30, 2003, the Corporation's total assets were $323.3 million, an increase of $35.7 million from December 31, 2002 and an increase of $63.3, or 24.3% from a year earlier. The largest segment of asset growth occurred in the loan portfolio and residential mortgages held for sale, which had a combined increase of $25.6 million from December 31, 2002. Other changes in assets during the same time period included the repositioning of the investment portfolio to reduce its overall duration, and the purchase of $7 million in Bank Owned Life Insurance. Total deposits increased $27.3 million from December 31, 2002, comprised of corporate checking, NOW and money market accounts increasing in total $14.2 million and time and savings accounts increasing in total $13.1 million. Additional funding growth was supplemented by Federal Home Loan Bank advances of $8.9 million.
The net interest margin, as measured on a taxable equivalent basis, was 3.03% for the second quarter. While this was down from the second quarter of 2002, it represents an increase of four basis points from the first quarter of 2003, despite the pressure from the low interest rate environment.
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Community Central Bank Corp.
Q2 2003 results
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Growth in non-interest income when compared to the second quarter last year was primarily comprised of gains on the sale of loans resulting from strong mortgage originations and net security gains from our repositioning of the investment portfolio, as discussed above. These two areas of noninterest income in the second quarter 2003 represented $2.3 million and $253,000, respectively. Growth in non-interest expense, when compared to the second quarter last year, was primarily comprised of costs associated with mortgage originations, including commission expense, which was more than offset by growth in corresponding non-interest income.
Mr. Widlak said, "We are pleased with the record earnings results in the second quarter. We continue to focus on initiatives to grow our earnings base and the ultimate return to shareholders. We recently announced the signing of a definitive agreement to purchase substantially all of the assets and assume substantially all of the liabilities of North Oakland Community Bank. This transaction is expected to provide us with expanded opportunities in all facets of our operations. We believe our growing commercial and mortgage banking team is succeeding in delivering a superior level of service to an expanded customer base. Mortgage originations are strong as we continue to focus on the purchase housing market, instead of the more rate sensitive refinancing mortgage banking sector. These strategies, coupled with sound credit quality and overall balance sheet growth, should enable us to compete and grow in our expanded marketplace. We will continue to target selected market areas for future growth as one of our strategies."
Community Central Bank Corporation is the holding company for Community Central Bank in Mount Clemens, Michigan. The Corporation opened for business in October 1996 and serves businesses and consumers across Macomb and St. Clair counties with a full range of lending, deposit and Internet banking services. The Bank operates a Loan Center in Port Huron, Michigan, serving small to medium-sized businesses in the St. Clair County area, and owns a mortgage subsidiary, Community Central Mortgage Company, LLC with locations in Mount Clemens, Warren, Dearborn, Livonia and Anchorville. The Corporation's common shares trade on the Nasdaq National Market under the symbol "CCBD".
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Community Central Bank Corp.
Q2 2003 results
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Forward-Looking Statements. This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995), which involve significant risks and uncertainties. Actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include changes in interest rate and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulation; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in the national and local economy; our ability to successfully integrate acquisitions into our existing operations, and the availability of new acquisitions that build shareholder value; and other factors included in Community Central Bank Corporation's filings with the Securities and Exchange Commission. The Corporation assumes no responsibility to update forward-looking statements.
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Community Central Bank Corp.
Q2 2003 results
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Summary of Selected Financial Data - Unaudited
Three months ended | Six months ended | |||
June 30, | June 30, | |||
2003 | 2002 | 2003 | 2002 | |
(In thousands) | (In thousands) | |||
OPERATIONS | ||||
Interest income | $4,033 | $3,613 | $7,886 | $7,149 |
Interest expense | 1,791 | 1,511 | 3,556 | 3,077 |
Net Interest Income | 2,242 | 2,102 | 4,330 | 4,072 |
Provision for credit losses | 25 | 165 | 75 | 315 |
Net Interest Income after Provision | 2,217 | 1,937 | 4,255 | 3,757 |
Noninterest income | 2,722 | 1,082 | 4,238 | 1,703 |
Noninterest expense | 4,174 | 2,404 | 7,061 | 4,226 |
Income before Taxes | 765 | 615 | 1,432 | 1,234 |
Provision for income taxes | 238 | 196 | 431 | 390 |
Net Income | $527 | $419 | $1,001 | $844 |
Unaudited | Audited | Unaudited | |
June 30, | December31, | June 30, | |
2003 | 2002 | 2002 | |
(In thousands) | |||
Assets | |||
Cash and equivalents | $19,618 | $9,405 | $30,829 |
Investments | 52,384 | 60,709 | 48,638 |
Residential mortgage loans held for sale | 16,688 | 11,245 | 7,536 |
Loans | 224,230 | 204,049 | 170,604 |
Allowance for loan losses | (3,421) | (3,377) | (2,982) |
Other Assets | 13,815 | 5,605 | 5,403 |
Total Assets | $323,314 | $287,636 | $260,028 |
Liabilities and stockholders' equity | |||
Deposits | $228,036 | $200,719 | $202,002 |
Repurchase Agreements | 7,425 | 8,006 | 7,087 |
Federal Home Loan Bank Advances | 53,288 | 44,388 | 17,400 |
Other Liabilities | 1,376 | 2,376 | 2,163 |
Guaranteed pref. beneficial interest in | |||
Corps subordinated debentures | 10,000 | 10,000 | 10,000 |
Stockholders' equity | 23,189 | 22,147 | 21,376 |
Total Liabilities and stockholders' equity | $323,314 | $287,636 | $260,028 |
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Community Central Bank Corp.
Q2-2003 results
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Three months ended | Six months ended | |||
June 30, | June 30, | |||
2003 | 2002 | 2003 | 2002 | |
PER SHARE DATA | ||||
Basic earnings per share | $0.20 | $0.16 | $0.38 | $0.32 |
Diluted earnings per share | $0.20 | $0.16 | $0.37 | $0.32 |
Book value per share at end of period | $8.56 | $8.00 | $8.56 | $8.00 |
Diluted average shares outstanding (000's) | 2,698 | 2,648 | 2,688 | 2,641 |
Actual shares outstanding at end | ||||
of period (000's) | 2,708 | 2,671 | 2,708 | 2,671 |
OTHER DATA | ||||
Net interest margin (fully tax-equivalent) | 3.03% | 3.65% | 3.01% | 3.54% |
Allowance for loan losses to total loans | 1.53% | 1.75% | 1.53% | 1.75% |
Nonaccruing loans to total loans | 0.26% | 0.25% | 0.26% | 0.25% |
Nonperforming assets to total assets | 0.32% | 0.47% | 0.32% | 0.47% |
Stockholders' equity to total assets | 7.17% | 8.22% | 7.17% | 8.22% |
Tier 1 Leverage Ratio | 9.65% | 11.66% | 9.65% | 11.66% |