Community Capital Bancshares’ Second Quarter 2006 Income and Earnings
More Than Double
Company Comments on Written Agreement with OCC
ALBANY, Ga., August 4, 2006 - Community Capital Bancshares Inc. (Nasdaq: ALBY) today reported that its net income for the three months ended June 30, 2006, more than doubled to $612,440 from $227,276 in the second quarter of 2005. Fully diluted earnings per share were $0.20 in the second quarter of 2006, a 122% gain from $0.09 in the comparable period a year ago.
Net interest income was $3.0 million in the second quarter of 2006, a 44.6% increase from the second quarter of 2005. Non-interest income totaled $753,660 at June 30, 2006, a 71.4% increase from the previous year. Non-interest expense for the second quarter 2006 totaled $2.5 million, which compares to $1.9 million for the prior-year period and $2.8 million for the first quarter of 2006.
For the six months ended June 30, 2006, the Company earned $0.25 in fully diluted earnings per share on net income of $771,290, compared to $0.16 and $490,803, respectively, in the same period in 2005.
“We generated healthy returns in income and earnings during the second quarter due to increases in our core business, especially in the ongoing growth in loans and deposits, combined with a reduction in expenses from the first quarter,” said Charles M. Jones III, chairman and chief executive officer. “Banking activity in our Dothan and Auburn markets continues to expand at a solid rate, giving us the opportunity to further build our retail and commercial customer base.”
Total assets at June 30, 2006, were $344.3 million, compared to $241.8 million at June 30, 2005, an increase of 42.4%. Net loans at the end of the second quarter were $265.3 million, an increase of 57.4% from the same period a year ago. Total deposits at June 30, 2006, were $285.9 million, an increase of 59.8% from June 30, 2005. Total year to date average assets were $329.5 million and average earning assets were $303 million.
The Company’s loan growth during the second quarter was composed of $2.5 million from AB&T National Bank in its Dothan, Ala., office, $1 million in its Auburn, Ala., office, with $2.9 million coming from Albany Bank & Trust, and $8.9 million from its loan production office in Charleston, S.C.
On August 2, 2006, Community Capital Bancshares disclosed that its subsidiary Banks had entered into written agreements with the Office of the Comptroller of the Currency (OCC) on July 27, 2006 to address such issues as risk, management and financial controls. As a result of these agreements, the subsidiary Banks of Community Capital Bancshares are required to take certain corrective actions, including the formation of a Compliance Committee composed of three independent Board directors, which, along with the full Board, will oversee improvements in various areas including loan review and lending policies, credit risk, liquidity and investment guidelines.
Community Capital Bancshares disclosed in June that it decided not to pursue its planned formation of a new federally chartered thrift in Charleston, S.C., and subsequently withdrew its application with the Office of Thrift Supervision. As part of the withdrawal process, the Company entered into a separation proposal with Atlantic Bank Holdings, Inc., and its proposed federal savings bank, Atlantic Bank & Trust. Atlantic Bank Holdings has filed an independent application for a thrift charter. Community Capital Bancshares will maintain its loan production office in Charleston until at least November 30, 2006, or until such time as Atlantic Bank Holdings’ charter application is approved.
“The biggest impact of these agreements is the fact that we will have to restrict our external growth plans for the next 18 to 24 months and adhere to specified capitalization requirements while we undergo reforms to our policies and procedures. We plan to use this time to concentrate on further improving our core business and operational efficiency, while intensifying our cost containment efforts. With our favorable market characteristics, and service-oriented approach to community banking, our goal is to position ourselves as a much stronger banking franchise once the OCC formal agreements are resolved.”
About Community Capital Bancshares
Headquartered in Albany, Ga., Community Capital Bancshares is the $344 million-asset 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 Company’s common stock is traded on the Nasdaq Capital Market under the symbol “ALBY”. For more information, please visit the Company’s website at www.comcapbancshares.com.
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.
COMMUNITY CAPITAL BANCSHARES, INC. |
AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS (Unaudited) |
June 30, 2006 and 2005 |
| | | | | | |
| | | | | | |
Assets | | 2006 | | 2005 | |
| | | | | | |
| Cash and due from banks | | $ | 7,829,289 | | $ | 10,582,584 | |
| Federal funds sold | | | 2,978,000 | | | 19,000 | |
| Securities available for sale, at fair value | | | 44,335,525 | | | 42,204,328 | |
| | | | | | | | |
| Loans | | | 268,714,322 | | | 170,434,912 | |
| Less allowance for loan losses | | | 3,455,381 | | | 1,882,578 | |
| Loans, net | | | 265,258,941 | | | 168,552,334 | |
| | | | | | | | |
| Premises and equipment | | | 9,076,230 | | | 7,744,266 | |
| Goodwill and other intangible assets | | | 2,594,231 | | | 2,639,381 | |
| Other assets | | | 12,262,832 | | | 10,104,283 | |
| | | | | | | | |
| | | $ | 344,335,048 | | $ | 241,846,176 | |
| | | | | | | | |
Liabilities and Stockholders' Equity | | | | | | | |
| | | | | | | | |
| Deposits | | | | | | | |
| Noninterest-bearing | | $ | 22,299,924 | | $ | 19,806,429 | |
| Interest-bearing | | | 263,560,029 | | | 159,051,683 | |
| Total deposits | | | 285,859,953 | | | 178,858,112 | |
| Other borrowings | | | 29,124,000 | | | 35,604,135 | |
| Other liabilities | | | 3,119,983 | | | 1,150,711 | |
| Total liabilities | | | 318,103,936 | | | 215,612,958 | |
| | | | | | | | |
| Total stockholders' equity | | | 26,231,112 | | | 26,233,218 | |
| | | $ | 344,335,048 | | $ | 241,846,176 | |
COMMUNITY CAPITAL BANCSHARES, INC. |
AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF INCOME |
|
| | | | | | | | | | |
| | | Three months ended June 30 | | | |
| | | 2006 | | 2005 | | 2006 | | 2005 | |
| Interest income | | | | | | | | | |
| Loans | | $ | 5,423,588 | | $ | 2,847,655 | | $ | 10,253,346 | | $ | 5,214,612 | |
| Investments | | | 478,600 | | | 470,790 | | | 1,131,628 | | | 962,792 | |
| Total interest income | | | 5,902,188 | | | 3,318,445 | | | 11,384,974 | | | 6,177,404 | |
| | | | | | | | | | | | | | |
| Interest expense | | | | | | | | | | | | | |
| Deposits | | | 2,511,672 | | | 945,880 | | | 4,720,460 | | | 1,646,522 | |
| Other borrowed money | | | 412,862 | | | 313,481 | | | 861,135 | | | 546,547 | |
| Total interest expense | | | 2,924,534 | | | 1,259,361 | | | 5,581,595 | | | 2,193,069 | |
| | | | | | | | | | | | | | |
| Net interest income | | | 2,977,654 | | | 2,059,084 | | | 5,803,379 | | | 3,984,335 | |
| Provision for loan losses | | | 333,500 | | | 250,000 | | | 812,500 | | | 430,000 | |
| Net interest income after provision for loan losses | | | 2,644,154 | | | 1,809,084 | | | 4,990,879 | | | 3,554,335 | |
| | | | | | | | | | | | | | |
| Other income | | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 343,202 | | | 254,027 | | | 655,155 | | | 470,283 | |
| Other operating income | | | 410,458 | | | 185,686 | | | 750,817 | | | 348,653 | |
| Total other income | | | 753,660 | | | 439,713 | | | 1,405,972 | | | 818,936 | |
| | | | | | | | | | | | | | |
| Other expenses | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 1,291,380 | | | 888,303 | | | 2,717,933 | | | 1,749,641 | |
| Equipment and occupancy expenses | | | 317,941 | | | 285,544 | | | 634,716 | | | 562,642 | |
| Other operating expenses | | | 890,658 | | | 701,401 | | | 1,914,560 | | | 1,380,169 | |
| Total other expenses | | | 2,499,979 | | | 1,875,248 | | | 5,267,209 | | | 3,692,452 | |
| | | | | | | | | | | | | | |
| Income before income taxes | | | 897,835 | | | 373,549 | | | 1,129,642 | | | 680,819 | |
| | | | | | | | | | | | | | |
| Income tax expense | | | 285,395 | | | 96,273 | | | 358,352 | | | 190,016 | |
| | | | | | | | | | | | | | |
| Net income | | $ | 612,440 | | $ | 277,276 | | $ | 771,290 | | $ | 490,803 | |
| | | | | | | | | | | | | | |
| Basic earnings per share | | $ | 0.21 | | $ | 0.10 | | $ | 0.26 | | $ | 0.17 | |
| | | | | | | | | | | | | | |
| Diluted earnings per share | | $ | 0.20 | | $ | 0.09 | | $ | 0.25 | | $ | 0.16 | |
