PEOPLE’S COMMUNITY CAPITAL CORPORATION
FOR MORE INFORMATION, CALL
TOMMY B. WESSINGER, CEO or
THOMAS H. LYLES, PRESIDENT
AT (803) 641-0142
PEOPLE'S COMMUNITY CAPITAL CORPORATION REPORTS YEAR END EARNINGS
AIKEN, SOUTH CAROLINA, January 19, 2005 – – PEOPLE’S COMMUNITY CAPITAL CORPORATION (OTCBB:PPLM.OB), holding company for PEOPLE’S COMMUNITY BANK, announced that for the three months ended December 31, 2004, net income was $228,134, or $0.19 per common share, compared to $307,558, or $0.27 per common share, for 2003. The decrease in earnings was due to $307,000 of merger-related expenses in the fourth quarter. For the year ended December 31, 2004, net income was $1,267,753, or $1.09 per common share, compared to $1,128,924, or $0.98 per common share, for the same period in 2003. This is an increase of 12% even though there were merger-related expenses in 2004 of $352,000.
Total assets for the company were $128.5 million at December 31, 2004, an 18% increase over the balance of $109.1 million at December 31, 2003. Net loans were $76.5 million, representing a 17% increase over last year-end’s balance of $65.3 million. Deposits were $107.5 million, a 15% increase over the December 31, 2003 balance of $93.2 million.
The company’s allowance for credit losses was increased by $25,000 for the quarter ending December 31, 2004, bringing the total annual provision to $176,000 and the ending reserve to $1,085,000, or 1.40% of loans. Total net charge-offs for the year were $30,844 compared to net charge-offs of $11,921 for 2003. There were no non-performing loans at December 31, 2004 or December 31, 2003.
As announced on October 18, 2004, People’s Community Capital Corporation (“PCCC”), People’s Community Bank of South Carolina (“PCB”), and First Citizens Bank and Trust Company, Inc., a South Carolina state bank (“FCB”) entered into an Agreement and Plan of Reorganization and Merger, under which PCCC and PCB will be merged with and into FCB, with FCB continuing after the merger as the surviving corporation. In an all cash transaction, shareholders of PCCC will receive $30.00 per share when the transaction is consummated.
People’s Community Capital Corporation is a bank holding company for People’s Community Bank of South Carolina in Aiken with three principal banking offices at 1715 Whiskey Road and 125 Park Avenue in Aiken and 518 Georgia Avenue in North Augusta. The Company’s stock is quoted on the OTC Bulletin Board under the symbol PPLM.OB. Internet banking is offered through the bank’s web site atwww.pcbOnline.net.
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 growth and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, greater than expected noninterest expenses or excessive loan losses 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. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
PCCC intends to file a proxy statement with the Securities and Exchange Commission (“SEC”) in connection with the proposed merger of PCCC and PCB with and into FCB, which merger was announced on October 18, 2004. INVESTORS AND SECURITY HOLDERS OF PCCC ARE URGED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT PCCC, FCB AND THE MERGER. The proxy statement and other relevant materials (when they become available), and any other documents filed by PCCC or FCB with the SEC, may be obtained free of charge at the SEC’s web site at www.sec.gov. In addition, investors and security holders may obtain free copies of the documents filed with the SEC by PCCC by directing a written request to: People’s Community Capital Corporation, 125 Park Avenue, S.W., Aiken, South Carolina 29801, Attention: Jean Covington. Investors and security holders are urged to read the proxy statement and the other relevant materials when they become available before making any voting or investment decision with respect to the merger.
PCCC and its executive officers and directors may be deemed to be participants in the solicitation of proxies from the shareholders of PCCC in connection with the merger. Information about those executive officers and directors and their ownership of PCCC’s common stock is set forth in the PCCC Form 10-KSB for the year ended December 31, 2003, which was filed with the SEC on March 29, 2004, and the PCCC proxy statement for the 2004 Annual Meeting of Shareholders, which was filed with the SEC on March 29, 2004. Investors and security holders may obtain additional information regarding the direct and indirect interests of PCCC and its executive officers and directors in the merger by reading the proxy statement regarding the merger when it becomes available.
Selected Financial Information
(In thousands, except per share data)
| Three Months Ended | Years Ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31 | December 31 | |||||||||||||
| Condensed Results of Operations | 2004 | 2003 | 2004 | 2003 | ||||||||||
| Interest income | $ | 1,664 | $ | 1,295 | $ | 6,059 | $ | 4,980 | ||||||
| Interest expense | 384 | 267 | 1,245 | 1,286 | ||||||||||
| Net interest income | 1,280 | 1,028 | 4,814 | 3,694 | ||||||||||
| Provision for possible loan losses | 25 | 34 | 176 | 112 | ||||||||||
| Non-interest income | 182 | 226 | 789 | 1,062 | ||||||||||
| Salaries and employee benefits expense | 521 | 438 | 1,909 | 1,694 | ||||||||||
| Occupancy and equipment expense | 85 | 90 | 324 | 354 | ||||||||||
| Other non-interest expense | 220 | 231 | 955 | 906 | ||||||||||
| Merger-related expenses | 307 | 0 | 352 | 0 | ||||||||||
| Operating income before provision for taxes | 304 | 461 | 1,887 | 1,690 | ||||||||||
| Provision for income taxes | 76 | 153 | 619 | 561 | ||||||||||
| Net income | $ | 228 | $ | 308 | $ | 1,268 | $ | 1,129 | ||||||
| Income per share of common stock: (See note) | ||||||||||||||
| Basic | $ | 0.19 | $ | 0.27 | $ | 1.09 | $ | 0.98 | ||||||
| Diluted | $ | 0.17 | $ | 0.25 | $ | 0.97 | $ | 0.90 | ||||||
| Weighted average shares outstanding: | ||||||||||||||
| Basic | 1,179,237 | 1,142,310 | 1,165,894 | 1,146,683 | ||||||||||
| Diluted | 1,320,309 | 1,253,461 | 1,303,452 | 1,256,731 | ||||||||||
| Other Data | ||||||||||||||
| Average interest-earning assets | $ | 123,502 | $ | 102,255 | $ | 116,241 | $ | 100,384 | ||||||
| Average interest-bearing liabilities | $ | 98,674 | $ | 80,444 | $ | 92,838 | $ | 79,817 | ||||||
| Net interest margin | 4.15 | % | 4.02 | % | 4.14 | % | 3.68 | % | ||||||
| Return on average equity | 6.61 | % | 10.02 | % | 9.62 | % | 9.36 | % | ||||||
| Return on average assets | 0.70 | % | 1.14 | % | 1.04 | % | 1.06 | % | ||||||
| Dec 31 | Dec 31 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Balance Sheet Data | 2004 | 2003 | ||||||||||||
| Total assets | $ | 128,542 | $ | 109,128 | ||||||||||
| Loans receivable, net | 76,521 | 65,301 | ||||||||||||
| Federal funds sold | 975 | 659 | ||||||||||||
| Short-term securities | 1,987 | 1,721 | ||||||||||||
| Investment securities | 43,064 | 35,257 | ||||||||||||
| Deposits | 107,540 | 93,238 | ||||||||||||
| Shareholders' equity | 13,911 | 12,366 | ||||||||||||
| Shareholders' equity per common share (See note) | $ | 11.80 | $ | 10.86 | ||||||||||
| Loan allowance to loans and leases | 1.40 | % | 1.42 | % | ||||||||||
| Net loans to deposits | 71.16 | % | 70.04 | % | ||||||||||
| Net charge-offs to average loans | 0.04 | % | 0.02 | % | ||||||||||
NOTE: Per share data for 2003 has been adjusted to reflect a stock dividend paid on 1/29/04.
