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| David J. Baranko | Andy Mus |
| Chief Financial Officer | Vice President |
| Community Capital Bancshares | Marsh Communications LLC |
| 229-446-2201 | 404-327-7662 |
Community Capital Bancshares Announces
Fourth Quarter and Full Year 2005 Earnings
ALBANY, Ga., March 20, 2006 - Community Capital Bancshares Inc. (Nasdaq: ALBY) today reported a loss of $172,000 in net income for the three months ended Dec. 31, 2005, or $(0.06) per fully diluted share. This compares to net income of $238,000 and $0.08 in diluted earnings per share for the comparable period in 2004. For the year ended Dec. 31, 2005, net income was $113,000, or $0.04 per fully diluted share, compared to $856,000, or $0.38, in 2004.
Net interest income rose to $2.5 million in the fourth quarter, a 49% increase compared to the prior year. The Company increased its provision for loan losses during the quarter to $1.5 million from $370,000 in the third quarter of 2005 as a result of the considerable increase in loan volume and the deterioration in the quality of two loan relationships. Non-interest expense in the fourth quarter increased $252,000 from the same period in 2004, due primarily to increased expenses in Equipment and occupancy costs due to the new locations. Other expense increases were the result of the increased size of the Company.
“It was both a difficult and hopeful quarter for Community Capital Bancshares,” said Charles M. Jones III, chairman and chief executive officer. “Though we incurred a loss from the sale of the investment securities that were determined to be other than temporarily impaired and suffered a large charge-off on a loan relationship in the fourth quarter, our Company has addressed its problems and repositioned itself on a solid foundation from which to grow in 2006 and beyond. We are encouraged by our strong asset growth and the substantial increase in loans during the quarter, especially in our Alabama and South Carolina markets.”
Total assets at Dec. 31, 2005, were $309.5 million, compared to $195.3 million at December 31, 2004, an increase of 58%. Net loans at the end of 2005 were $227.9 million, an increase of 81% over 2004. Deposits increased 77% during the past twelve months to $245.6 million. Total average assets at the end of the fourth quarter were $249.5 million and average earning assets were $224.5 million.
Growth in the loan portfolio during the year was strong across all the Company’s markets, led by an increase in the Alabama market of $45.2 million which includes $7.3 million in loans participated from the Albany and Charleston markets. The new loan production office in Charleston, S.C., which opened in June 2005, contributed $34.8 million in new outstanding loans. The Albany, Ga., market accounted for $23.8 million in loan growth during the year.
“In 2005 we confronted and eliminated certain negative factors adversely affecting our financial performance,” said Jones. “With this difficult effort behind us, we now are in a much better position to grow our banking franchise and provide value to our shareholders. Our continued strong asset and loan growth, and year-over-year growth in both interest income and non-interest income, are solid indicators that we are headed in the right direction.”
About Community Capital Bancshares
Headquartered in Albany, Ga., Community Capital Bancshares is the holding company for Albany Bank & Trust and AB&T National Bank. Albany Bank & Trust has three banking locations in Albany and a loan production office in Charleston, S.C. AB&T National Bank has offices in Dothan, Ala., and Auburn, Ala. The holding company’s common stock is traded on the Nasdaq Capital Market under the symbol “ALBY”.
The preceding release contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “believe”, “estimate”, “expect”, “intend”, “anticipate” and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements
