U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One) FORM 10-Q
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
-----
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 2001
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
_____
THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the Transition Period from _________to_________
Commission File Number 33-76644
COMMUNITYCORP
(Exact name of registrant as specified in its charter)
South Carolina 57-1019001
(State or other jurisdiction of (I.R.S. Employer
incorporation) Identification No.)
1100 N. Jefferies Boulevard
Walterboro, SC 29488
(Address of principal executive
offices, including zip code)
(843) 549-2265
(Registrant's telephone number, including area code)
________________________________________________
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO ___
---
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the date of this filing.
300,000 shares of common stock, $5 par value, as of October 31, 2001
PAGE 1 OF 15
EXHIBIT INDEX ON PAGE 2
COMMUNITYCORP
Index
PART I. FINANCIAL INFORMATION Page No.
------------------------------
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets - September 30, 2001 and December 31, 2000 .................. 3
Condensed Consolidated Statements of Income - Nine months ended
September 30, 2001 and 2000 and Three months ended September 30, 2001 and 2000 .................. 4
Condensed Consolidated Statements of Shareholders' Equity and Comprehensive Income -
Nine months ended September 30, 2001 ............................................................ 5
Condensed Consolidated Statements of Cash Flows - Nine months ended September 30, 2001 and 2000 ... 6
Notes to Condensed Consolidated Financial Statements .............................................. 7-8
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations .............. 9-13
PART II. OTHER INFORMATION
--------------------------
Item 6. Exhibits and Reports on Form 8-K ................................................................... 14
(a) Exhibits ...................................................................................... 14
(b) Reports on Form 8-K ........................................................................... 14
COMMUNITYCORP
Condensed Consolidated Balance Sheets
(Unaudited)
September 30, December 31,
2001 2000
------------- -------------
Assets:
Cash and cash equivalents:
Cash and due from banks $ 3,956,265 $ 5,215,660
Federal funds sold and securities purchased under
agreements to resell 17,934,000 3,610,000
------------- -------------
Total cash and cash equivalents 21,890,265 8,825,660
------------- -------------
Securities available-for-sale 11,236,411 18,866,657
Nonmarketable equity securities 330,375 330,375
Securities held-to-maturity (estimated market value of $3,722,221 and
$4,583,562 at September 30, 2001
and December 31, 2000, respectively) 3,634,685 4,597,772
------------- -------------
Total investment securities 15,201,471 23,794,804
------------- -------------
Loans receivable 69,288,742 67,794,723
Less allowance for loan losses (1,222,638) (1,173,832)
------------- -------------
Loans, net 68,066,104 66,620,891
Accrued interest receivable 893,986 1,076,924
Premises, furniture & equipment, net 2,030,782 2,160,046
Other assets 458,825 590,474
------------- -------------
Total assets $ 108,541,433 $ 103,068,799
============= =============
Liabilities and Shareholders' Equity:
Liabilities:
Deposits:
Noninterest-bearing $ 8,717,732 $ 9,800,324
Interest-bearing 87,733,042 81,997,468
------------- -------------
96,450,774 91,797,792
Short-term borrowings 380,000 530,000
Accrued interest payable 771,897 735,659
Other liabilities 169,190 125,492
------------- -------------
Total liabilities 97,771,861 93,188,943
------------- -------------
Shareholders' Equity:
Preferred stock, $5 par value, 3,000,000 shares authorized
and unissued -- --
Common stock, $5 par value, 3,000,000 shares authorized,
300,000 shares issued and outstanding 1,500,000 1,500,000
Capital surplus 1,731,708 1,731,708
Accumulated other comprehensive income (loss) 100,897 (71,480)
Retained earnings 8,308,173 7,500,834
Treasury stock (20,294 shares in 2001
and 18,294 shares in 2000) (871,206) (781,206)
------------- -------------
Total shareholders' equity 10,769,572 9,879,856
------------- -------------
Total liabilities and shareholders' equity $ 108,541,433 $ 103,068,799
============= =============
See notes to condensed consolidated financial statements
3
COMMUNITYCORP
Condensed Consolidated Statements of Income
(Unaudited)
Nine Months Ended Three Months Ended
September 30, September 30,
----------------------- -----------------------
2001 2000 2001 2000
---------- ---------- ---------- ----------
Interest income:
Loans, including fees $4,813,491 $4,446,884 $1,607,171 $1,560,557
Securities 619,965 1,067,325 163,520 354,609
Other interest income 649,616 99,036 170,404 9,356
---------- ---------- ---------- ----------
Total 6,083,072 5,613,245 1,941,095 1,924,522
---------- ---------- ---------- ----------
Interest expense:
Deposit accounts 3,168,829 2,557,191 981,175 903,741
Other interest expense 16,374 35,534 3,899 16,130
---------- ---------- ---------- ----------
3,185,203 2,592,725 985,074 919,871
---------- ---------- ---------- ----------
Net interest income 2,897,869 3,020,520 956,021 1,004,651
Provision for loan losses 192,000 230,000 50,000 75,000
---------- ---------- ---------- ----------
Net interest income after provision for loan losses 2,705,869 2,790,520 906,021 929,651
---------- ---------- ---------- ----------
Other operating income:
Service charges 255,768 254,497 100,704 103,595
Other income 96,782 91,999 29,582 20,345
---------- ---------- ---------- ----------
Total 352,550 346,496 130,286 123,940
---------- ---------- ---------- ----------
Other operating expenses:
Salaries and benefits 809,093 704,428 270,114 235,127
Net occupancy expense 117,364 101,075 43,248 34,148
Equipment expense 192,979 188,324 65,049 61,715
Other operating expenses 530,806 444,433 158,737 168,377
---------- ---------- ---------- ----------
Total 1,650,242 1,438,260 537,148 499,367
---------- ---------- ---------- ----------
Income before taxes 1,408,177 1,698,756 499,159 554,224
Income tax provision 445,900 546,683 163,999 177,000
---------- ---------- ---------- ----------
Net income $ 962,277 $1,152,073 $ 335,160 $ 377,224
========== ========== ========== ==========
Earnings per share:
Weighted average common shares outstanding 280,710 283,879 279,721 283,697
---------- ---------- ---------- ----------
Net income per common share $ 3.43 $ 4.06 $ 1.20 $ 1.33
========== ========== ========== ==========
See notes to condensed consolidated financial statements
4
COMMUNITYCORP
Condensed Consolidated Statement of Shareholders' Equity and Comprehensive
Income for the nine months ended September 30, 2001
(Unaudited)
Accumulated
Other
Common Stock Capital Comprehensive Retained Treasury
---------------------
Shares Amount Surplus Income Earnings Stock Total
-------- ------- --------- -------- ---------- ------- -------
Balance,
December 31, 2000 300,000 $ 1,500,000 $ 1,731,708 $ (71,480) $ 7,500,834 $ (781,206) $ 9,879,856
Cash dividends
declared -$.50 per
share (154,938) (154,938)
Net income for the
period 962,277 962,277
Other comprehensive
income, net of taxes 172,377 172,377
-------------
Comprehensive
income 1,134,654
-------------
Purchase of
Treasury Stock (90,000) (90,000)
------- ----------- ----------- ----------- ----------- ---------- -------------
Balance,
September 30, 2001 300,000 $ 1,500,000 $ 1,731,708 $ 100,897 $ 8,308,173 $ (871,206) $ 10,769,572
======= =========== =========== =========== =========== ========== =============
See notes to condensed consolidated financial statements
5
COMMUNITYCORP
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
September 30,
------------ -------------
2001 2000
------------ -------------
Cash flows from operating activities:
Net income $ 962,277 $ 1,152,073
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation 140,961 124,452
Provision for possible loan losses 192,000 230,000
Amortization less accretion on investments 11,308 14,842
Amortization of deferred loan costs 58,971 57,859
(Increase) decrease in interest receivable 182,938 (84,945)
Increase (decrease) in interest payable 36,238 155,854
(Increase) decrease in other assets 42,400 (29,137)
Increase (decrease) in other liabilities 43,698 (33,487)
------------ -------------
Net cash provided by operating activities 1,670,791 1,587,511
------------ -------------
Cash flows from investing activities:
Net increase in loans to customers (1,696,184) (7,214,291)
Purchases of securities available-for-sale (11,323,613) (800,000)
Maturities of securities available-for-sale 19,208,759 385,193
Maturities of securities held-to-maturity 958,505 254,458
Purchases of premises and equipment (11,697) (29,092)
------------ -------------
Net cash provided (used) by investing activities 7,135,770 (7,403,732)
------------ -------------
Cash flows from financing activities:
Net increase (decrease) in deposits accounts 4,652,982 (1,577,983)
Increase in short-term borrowings (150,000) 1,260,000
Dividends paid (154,938) (141,597)
Purchase of treasury stock (90,000) (396,180)
------------ -------------
Net cash provided (used) by financing activities 4,258,044 (855,760)
------------ -------------
Net increase (decrease) in cash and cash equivalents 13,064,605 (6,671,981)
Cash and cash equivalents, beginning of period 8,825,660 10,393,770
------------ -------------
Cash and cash equivalents, end of period $ 21,890,265 $ 3,721,789
============ ============
Cash paid during the period for:
Income taxes $ 494,588 $ 585,180
Interest $ 3,148,965 $ 2,436,871
See notes to condensed consolidated financial statements
6
COMMUNITYCORP
Notes To Condensed Consolidated Financial Statements
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
------------------------------
The accompanying consolidated financial statements have been prepared in
accordance with the requirements for interim financial statements and,
accordingly, they are condensed and omit disclosures, which would substantially
duplicate those contained in the most recent annual report to shareholders. The
financial statements as of September 30, 2001 and for the interim periods ended
September 30, 2001 and 2000 are unaudited and, in the opinion of management,
include all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation. The financial information as of December 31,
2000 has been derived from the audited financial statements as of that date. For
further information, refer to the financial statements and the notes included in
Communitycorp's 2000 Annual Report.
NOTE 2 - COMPREHENSIVE INCOME
-----------------------------
The components of other comprehensive income and related tax effects are as
follows:
Pre-tax (Expense) Net-of-tax
Amount Benefit Amount
-------- --------- ----------
For the Nine Months Ended September 30, 2001:
Unrealized gains (losses) on securities available-for-sale $261,626 $(89,249) $172,377
Plus: reclassification adjustment for
gains (losses) realized in net income -- -- --
-------- -------- --------
Net unrealized gains (losses) on securities 261,626 (89,249) 172,377
-------- -------- --------
Other comprehensive income $261,626 $(89,249) $172,377
======== ======== ========
Pre-tax (Expense) Net-of-tax
Amount Benefit Amount
-------- --------- ----------
For the Nine Months Ended September 30, 2000:
Unrealized gains (losses) on securities available-for-sale $ 90,373 $(30,727) $ 59,646
Plus: reclassification adjustment for
gains (losses) realized in net income -- -- --
-------- -------- --------
Net unrealized gains (losses) on securities 90,373 (30,727) 59,646
-------- -------- --------
Other comprehensive income $ 90,373 $(30,727) $ 59,646
======== ======== ========
7
COMMUNITYCORP
Notes To Consolidated Financial Statements
(Unaudited)
NOTE 2 - COMPREHENSIVE INCOME - continued
-----------------------------
Pre-tax (Expense) Net-of-tax
Amount Benefit Amount
-------- --------- ----------
For the Three Months Ended September 30, 2001:
Unrealized gains (losses) on securities available-for-sale $ 74,824 $(24,872) $ 49,952
Plus: reclassification adjustment for
gains (losses) realized in net income -- -- --
-------- -------- --------
Net unrealized gains (losses) on securities 74,824 (24,872) 49,952
-------- -------- --------
Other comprehensive income $ 74,824 $(24,872) $ 49,952
======== ======== ========
Pre-tax (Expense) Net-of-tax
Amount Benefit Amount
-------- --------- ----------
For the Three Months Ended September 30, 2000:
Unrealized gains (losses) on securities available-for-sale $204,815 $(69,637) $135,178
Plus: reclassification adjustment for
gains (losses) realized in net income -- -- --
-------- -------- --------
Net unrealized gains (losses) on securities 204,815 (69,637) 135,178
-------- -------- --------
Other comprehensive income $204,815 $(69,637) $135,178
======== ======== ========
Accumulated other comprehensive income consists solely of the unrealized gain on
securities available for sale, net of the deferred tax effects.
8
COMMUNITYCORP
Item 2. Management's Discussion and Analysis of Financial Condition
-------------------------------------------------------------------
The following is a discussion of the Company's financial condition as of
September 30, 2001 compared to December 31, 2000, and the results of operations
for the three and nine months ended September 30, 2001 compared to the three and
nine months ended September 30, 2000. These comments should be read in
conjunction with the Company's condensed consolidated financial statements and
accompanying footnotes appearing in this report.
Results of Operations
---------------------
Net Interest Income
-------------------
For the nine months ended September 30, 2001, net interest income decreased
$122,651, or 4.06%, as compared to the same period in 2000. Interest and fees on
loans increased $366,607, or 8.24% to $4,813,491 for the nine months ended
September 30, 2001 as compared to the same period in 2000. Other interest
income, which includes interest on federal funds sold, increased $550,580, or
555.94% to $649,616 for the nine months ended September 30, 2001 when compared
to the same period in 2000. However, interest income on securities decreased
$447,360 to $619,965 for the nine months ended September 30, 2001 when compared
to the same nine months ended September 30, 2000. The decrease in interest
income from securities is due to a number of securities being called and those
funds being invested in federal funds until needed for loans or until the market
for securities improves. Interest expense on deposits increased 23.92% from
$2,557,191 for the nine months ended September 30, 2000 to $3,168,829 for the
same period ended September 30, 2001. The net interest margin realized on
earning assets decreased from 4.48% for the nine months ended September 30, 2000
to 3.64% for the same period in 2001. The interest rate spread also decreased by
93 basis points from 3.83% at September 30, 2000 to 2.90% at September 30, 2001.
Net interest income decreased $48,630, or 4.84%, to $956,021 for the quarter
ending September 30, 2001 when compared to the same quarter ended September 30,
2000. Interest on loans and fees increased $46,614 or 2.99% to $1,607,171 for
the quarter ended September 30, 2001 when compared to the same period in 2000.
Other interest income increased $161,048 from $9,356 for the quarter ended
September 30, 2000 to $170,404 for the quarter ended September 30, 2001. The
interest income on securities for the quarter ending September 30, 2001
decreased $191,089 to $163,520 when compared to the same period in 2000.
Interest expense increased $65,203 to $985,074 for the quarter ended September
30, 2001 when compared to the same period in 2000. The net interest margin
realized on earning assets decreased from 4.43% for the quarter ended September
30, 2000 to 3.57% for the quarter ended September 30, 2001. The interest rate
spread also decreased from 3.75% for the quarter ended September 30, 2000 to
2.88% for the same period in 2001.
Provision and Allowance for Loan Losses
---------------------------------------
The provision for loan losses is the charge to operating earnings that
management feels is necessary to maintain the allowance for possible loan losses
at an adequate level. For the nine months ended September 30, 2001, the
provision charged to expense was $192,000. This was $38,000 less than for the
comparable period in 2000. The provision charged to expense for the quarter
ended September 30, 2001 was $50,000 as compared to $75,000 for the same quarter
a year ago. The decreases in the provision for the quarter and the nine months
are attributable to little growth in the loan portfolio. Based on present
information, management believes the allowance for loan losses is adequate at
September 30, 2001 to meet presently known and inherent risks in the loan
portfolio. The allowance for loan losses is 1.77% of total loans at September
30, 2001, as compared to 1.78% at September 30, 2000.
Noninterest Income
------------------
Noninterest income during the nine months ended September 30, 2001 was $352,550,
an increase of $6,054 or 1.75% from the comparable period in 2000. Service
charges on deposit accounts increased $1,271 from the period ended September 30,
2000 to $255,768 for the period ended September 30, 2001. Other income increased
5.20% to $96,782 for the nine months ended September 30, 2001 when compared to
the same period ended September 30, 2000.
For the quarter ended September 30, 2001, noninterest income increased $6,346 or
5.12% over the same period in 2000. This increase is primarily due to other
income, which increased 45.40% from the quarter ended September 30, 2000 to
$29,582 for the quarter ended September 30, 2001.
9
COMMUNITYCORP
Item 2. Management's Discussion and Analysis of Financial Condition - continued
-------------------------------------------------------------------
Noninterest Expense
-------------------
Total noninterest expense for the nine months ended September 30, 2001 was
$1,650,242, or 14.74%, higher than the nine months ended September 30, 2000.
Salaries and employee benefits increased from $704,428 for the nine months ended
September 30, 2000 to $809,093 for the nine months ended September 30, 2001.
This increase is primarily attributable to annual pay raises and the addition of
several full time employees. One employee was hired to staff the Forest Hills
branch which opened earlier in the year. Other operating expenses increased
$86,373, or 19.43%, to $530,806 for the nine months ended September 30, 2001
when compared to the same period in 2000. Other expenses included a writedown of
$20,983 on the disposal of other real estate owned.
For the quarter ended September 30, 2001, noninterest expense increased $37,781,
or 7.57%, over the same period in 2000. Salaries and employee benefits increased
$34,987, or 14.88%, from $235,127 for the quarter ended September 30, 2000 to
$270,114 for the quarter ended September 30, 2001. The increase was due to the
same reasons discussed above.
Income Taxes
------------
The income tax provision for the nine months ended September 30, 2001 was
$445,900 as compared to $546,683 for the same period in 2000. This decrease was
primarily as a result of a decrease in income before taxes. The effective tax
rates were 31.67% and 32.18% for the nine months ended September 30, 2001 and
September 30, 2000, respectively. The effective tax rates were 32.86% and 31.94%
for the quarter ended September 30, 2001 and September 30, 2000, respectively.
Net Income
----------
The combination of the above factors resulted in net income for the nine months
ended September 30, 2001 of $962,277 as compared to $1,152,073 for the same
period in 2000. This represents a decrease of $189,796, or 16.47%, over the same
period in 2000. Net income for the quarter ended September 30, 2001 was
$335,160, or 11.15%, lower than for the same period in 2000. The decrease in net
interest income and increase in noninterest expenses resulted in the decrease in
both the nine months and quarterly period.
Assets and Liabilities
----------------------
During the first nine months of 2001, total assets increased $5,472,634, or
5.31% when compared to December 31, 2000. Cash and cash equivalents increased
$13,064,605 from December 31, 2000 primarily because of the increase of
$14,324,000 in federal funds sold and repurchase agreements. This increase was
primarily a result of a number of securities available for sale being called and
those funds being placed in federal funds until needed for loans or until the
market is more acceptable for investment purchases. Total investment securities
decreased $8,593,333 from December 31, 2000 to $15,201,471 at September 30,
2001. Loans increased $1,494,019, or 2.20%, to $69,288,742 at September 30,
2001. Total deposits also increased by 5.07%, or $4,652,982, from December 31,
2000 to $96,450,774 at September 30, 2001. While noninterest-bearing deposits
decreased 11.05% from December 31, 2000 to $8,717,732, interest-bearing deposits
increased $5,735,574, or 6.99%, to $87,733,042 at September 30, 2001. This
increase was attributable to additional funds received from Colleton County and
to normal growth of the Bank.
10
COMMUNITYCORP
Item 2. Management's Discussion And Analysis Of Financial Condition - continued
-------------------------------------------------------------------
Loans
-----
The demand for loans remained stable in the Walterboro marketplace during the
first nine months of 2001. Gross loans increased $1,494,019 or 2.20% during the
period. Balances within the major loans receivable categories as of September
30, 2001 and December 31, 2000 are as follows:
September 30, December 31,
2001 2000
------------- ------------
Commercial and industrial $ 47,702,391 $ 45,815,207
Real estate 5,989,562 6,665,664
Consumer 14,918,799 14,812,904
Agricultural 230,413 151,364
Other, net 447,577 349,584
------------- ------------
$ 69,288,742 $ 67,794,723
============= ============
Risk Elements in the Loan Portfolio
-----------------------------------
The following is a summary of risk elements in the loan portfolio:
September 30, December 31,
2001 2000
------------- ------------
Loans: Nonaccrual loans $ 3,397,118 $ 1,020,349
Accruing loans more than 90 days past due $ 8,556 $ -
Loans identified by the internal review mechanism:
Criticized $ - $ 175,431
Classified $ 3,043,834 $ 787,735
Activity in the Allowance for Loan Losses is as follows:
September 30,
-------------------------------
2001 2000
------------- ------------
Balance, January 1, $ 1,173,832 $ 1,086,980
Provision for loan losses for the period 192,000 230,000
Net loans (charged off) recovered for the period (143,194) (132,581)
------------- ------------
Balance, end of period $ 1,222,638 $ 1,184,399
============= ============
Gross loans outstanding, end of period $ 69,288,742 $ 66,516,866
Allowance for loan losses to loans outstanding 1.77% 1.78%
11
COMMUNITYCORP
Item 2. Management's Discussion And Analysis Of Financial Condition - continued
-------------------------------------------------------------------
Deposits
--------
Total deposits increased $4,652,982, or 5.07%, from December 31, 2000 to
$96,450,774 at September 30, 2001. The largest change was an increase in savings
deposits and certificates of deposit. Savings deposits increased $5,563,281 to
$21,112,265 at September 30, 2001. Certificates of deposit increased $3,890,860
or 7.90% to $53,135,351 at September 30, 2001. Expressed in percentages,
interest-bearing deposits increased 6.99%. The decrease in noninterest-bearing
demand deposits was partially attributable to the withdrawal of certain
Charleston County funds. Colleton County subsequently deposited approximately
$3,000,000 into savings accounts and approximately $7,000,000 in certificates of
deposit which were still on deposit at September 30, 2001.
Balances within the major deposit categories as of September 30, 2001 and
December 31, 2000 are as follows:
September 30, December 31,
2001 2000
------------- ------------
Noninterest-bearing demand deposits $ 8,717,732 $ 9,800,324
Interest-bearing demand deposits 13,485,426 17,203,993
Savings deposits 21,112,265 15,548,984
Certificates of deposit 53,135,351 49,244,491
------------- ------------
$ 96,450,774 $ 91,797,792
============= ============
Liquidity
---------
Liquidity needs are met by the Company through scheduled maturities of loans and
investments on the asset side and through pricing policies on the liability side
for interest-bearing deposit accounts. The level of liquidity is measured by the
loan-to-total funds ratio, which was at 71.56% at September 30, 2001 and 73.43%
at December 31, 2000.
Securities available-for-sale, which totaled $11,236,411 at September 30, 2001,
serves as a ready source of liquidity. The Company also has lines of credit
available with correspondent banks to purchase federal funds. At September 30,
2001, unused lines of credit totaled $2,500,000.
Capital Resources
-----------------
Total shareholders' equity increased from $9,879,856 at December 31, 2000 to
$10,769,572 at September 30, 2001. The increase of $889,716 is attributable to
earnings for the period of $962,277. The increase was also attributable to an
increase of $172,377 in the fair value for securities available for sale for the
period. Equity was negatively affected by the purchase of treasury stock of
$90,000 during the period.
Bank holding companies, such as the Company, and their banking subsidiaries are
required by banking regulators to meet certain minimum levels of capital
adequacy, which are expressed in the form of certain ratios. Capital is
separated into Tier 1 capital (essentially common shareholders' equity less
intangible assets) and Tier 2 capital (essentially the allowance for loan losses
limited to 1.25% of risk-weighted assets). The first two ratios, which are based
on the degree of credit risk in the Company's assets, provide the weighting of
assets based on assigned risk factors and include off-balance sheet items such
as loan commitments and stand-by letters of credit. The ratio of Tier 1 capital
to risk-weighted assets must be at least 4.0% and the ratio of total capital
(Tier 1 capital plus Tier 2 capital) to risk-weighted assets must be at least
8.0%. The capital leverage ratio supplements the risk-based capital guidelines.
Banks and bank holding companies are required to maintain a minimum ratio of
Tier 1 capital to adjusted quarterly average total assets of 3.0%.
12
COMMUNITYCORP
Item 2. Management's Discussion And Analysis Of Financial Condition - continued
-------------------------------------------------------------------
Capital Resources - continued
-----------------
The following table summarizes the Company's risk-based capital at September 30,
2001:
Shareholders' equity $ 10,668,675
Less: intangibles -
-------------
Tier 1 capital 10,668,675
Plus: allowance for loan losses (1) 930,666
-------------
Total capital $ 11,599,341
=============
Risk-weighted assets $ 74,453,242
=============
Risk based capital ratios
Tier 1 capital (to risk-weighted assets) 14.33%
Total capital (to risk-weighted assets) 15.58%
Tier 1 capital (to total average assets) 9.61%
(1) limited to 1.25% of risk-weighted assets
Regulatory Matters
------------------
The management of the Company is not aware of any current recommendations by
regulatory authorities which, if they were to be implemented, would have a
material effect on liquidity, capital resources or operations.
13
COMMUNITYCORP
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
----------------------------------------
(a) Exhibits
(b) Reports on Form 8-K - No reports on Form 8-K were filed during the quarter
ended September 30, 2001.
Items 1, 2, 3, 4, and 5 are not applicable.
14
COMMUNITYCORP
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
COMMUNITYCORP
By: /s/ W. ROGER CROOK
-----------------------------------
W. Roger Crook
President & Chief Executive Officer
Date: November 2, 2001 By: /s/ GWEN P. BUNTON
-----------------------------------
Gwen P. Bunton
Chief Financial Officer
15