x
|
QUARTERLY
REPORT UNDER SECTION 13 AND 15(d) OF THE SECURITIES EXCHANGE ACT
OF
1934
|
o
|
TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
1934
|
Georgia
|
58-2413468
|
(State
or other jurisdiction of
|
(IRS
Employer
|
Incorporation
or organization)
|
Identification
No.)
|
Yes
X
|
No
___
|
Large
Accelerated Filer ____
|
Accelerated
Filer ____
|
Non-Accelerated
Filer X
|
Yes
___
|
No
X
|
PART
I - FINANCIAL INFORMATION
|
Page
No.
|
|
Financial
Statements
|
||
Consolidated
balance sheets as of December 31, 2006 and September 30, 2007
(unaudited)
|
3
|
|
Consolidated
statements of income (unaudited) for the three and nine months
ended
September 30, 2006 and 2007
|
4
|
|
Consolidated
statements of comprehensive income (unaudited) for the three and
nine
months ended September 30, 2006 and 2007
|
5
|
|
Consolidated
statements of cash flows (unaudited) for the nine months ended
September
30, 2006 and 2007
|
6
|
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
9
|
Item
3.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
14
|
Item
4.
|
Controls
and Procedures
|
14
|
PART
II - OTHER INFORMATION
|
||
ITEM
1.
|
Legal
Proceedings
|
16
|
ITEM
1.A.
|
Risk
Factors
|
16
|
ITEM
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
16
|
ITEM
3.
|
Defaults
upon Senior Securities
|
16
|
ITEM
4.
|
Submission
of Matters to a Vote of Security Holders
|
16
|
ITEM
5.
|
Other
Information
|
16
|
ITEM
6.
|
Exhibits
|
18
|
Community
Capital Bancshares, Inc.
|
||||||||
and
Subsidiaries
|
||||||||
Consolidated
Balance Sheets
|
||||||||
(Dollars
in thousands)
|
||||||||
September
30, 2007
(unaudited)
|
December
31,
2006
|
|||||||
Assets
|
||||||||
Cash
and due from banks
|
$ |
7,489
|
$ |
7,408
|
||||
Federal
funds sold
|
19,364
|
6,400
|
||||||
Securities
available for sale
|
50,981
|
36,524
|
||||||
Restricted
equity securities
|
2,561
|
2,434
|
||||||
Loans
|
151,809
|
225,630
|
||||||
Less
allowance for loan losses
|
5,381
|
5,507
|
||||||
Loans,
net
|
146,428
|
220,123
|
||||||
Premises
and equipment
|
6,657
|
6,758
|
||||||
Premises
and equipment held for sale
|
-
|
3,022
|
||||||
Goodwill
|
2,334
|
2,334
|
||||||
Core
deposit premium
|
212
|
240
|
||||||
Other
assets
|
12,814
|
11,693
|
||||||
Total
Assets
|
$ |
248,840
|
$ |
296,936
|
||||
Liabilities
and Shareholders' Equity
|
||||||||
Deposits
|
||||||||
Non-interest
bearing
|
$ |
20,521
|
$ |
19,480
|
||||
Interest
bearing
|
170,040
|
218,073
|
||||||
Total
deposits
|
190,561
|
237,553
|
||||||
Other
borrowings
|
25,000
|
27,000
|
||||||
Guaranteed
preferred beneficial interests in junior
subordinated debentures
|
4,124
|
4,124
|
||||||
Other
liabilities
|
1,961
|
1,467
|
||||||
Total
Liabilities
|
221,646
|
270,144
|
||||||
Shareholders'
equity
|
||||||||
Preferred
stock, par value not stated; 2,000,000 shares authorized;
|
||||||||
no
shares issued
|
$ |
- -
|
$ |
-
-
|
||||
Common
stock, $1.00 par value, 10,000,000 shares authorized;
|
||||||||
3,104,040
and 3,074,210 shares issued
|
3,104
|
3,074
|
||||||
Capital
surplus
|
23,334
|
23,032
|
||||||
Retained
earnings
|
1,503
|
1,654
|
||||||
Accumulated
other comprehensive loss
|
(400 | ) | (568 | ) | ||||
Less
cost of treasury stock, 46,761 and 53,475 shares as of
September
30, 2007 and December 31, 2006 respectively
|
(347 | ) | (400 | ) | ||||
Total
shareholders' equity
|
27,194
|
26,792
|
||||||
Total
Liabilities and Shareholders' Equity
|
$ |
248,840
|
$ |
296,936
|
Community
Capital Bancshares, Inc.
and
Subsidiaries
Consolidated
Statements of Operations (unaudited)
For
the three and nine months ended September 30, 2007 and
2006
(Dollars
in thousands, except per share data)
|
|||||||||||||
Three
months ended
|
Nine
months ended
|
|||||||||||||||
September
|
September
|
September
|
September
|
|||||||||||||
30,
2007
|
30,
2006
|
30,
2007
|
30,
2006
|
|||||||||||||
Interest
Income
|
||||||||||||||||
Loans
|
3,360
|
5,556
|
12,260
|
15,810
|
||||||||||||
Investment
securities
|
553
|
473
|
1,436
|
1,410
|
||||||||||||
Deposits
in banks
|
25
|
6
|
29
|
17
|
||||||||||||
Federal
funds sold
|
234
|
21
|
417
|
205
|
||||||||||||
Total
interest income
|
4,172
|
6,056
|
14,142
|
17,442
|
||||||||||||
Interest
expense
|
||||||||||||||||
Deposits
|
2,051
|
2,681
|
6,522
|
7,402
|
||||||||||||
Other
borrowed money
|
318
|
399
|
1,079
|
1,260
|
||||||||||||
Total
interest expense
|
2,369
|
3,080
|
7,601
|
8,662
|
||||||||||||
Net
interest income
|
1,803
|
2,976
|
6,541
|
8,780
|
||||||||||||
Provision
for loan losses
|
660
|
124
|
1,344
|
937
|
||||||||||||
Net
interest income after provision for loan losses
|
1,143
|
2,852
|
5,197
|
7,843
|
||||||||||||
Other
income
|
||||||||||||||||
Service
charges on deposit accounts
|
229
|
303
|
695
|
958
|
||||||||||||
Financial
service fees
|
78
|
54
|
198
|
161
|
||||||||||||
Mortgage
origination fees
|
23
|
290
|
92
|
720
|
||||||||||||
Loss
on sale of investment securities
|
(59 | ) | (59 | ) | ||||||||||||
Loss
on sale of foreclosed properties
|
(26 | ) | (90 | ) | (90 | ) | (109 | ) | ||||||||
Gain
(loss) on sale of fixed assets
|
(15 | ) |
-
-
|
206
|
-
-
|
|||||||||||
Increase
in cash surrender value of company owned
insurance policies
|
68
|
63
|
199
|
185
|
||||||||||||
Other
operating income
|
49
|
192
|
159
|
304
|
||||||||||||
Total
other income
|
406
|
753
|
1,459
|
2,160
|
||||||||||||
Other
expenses
|
||||||||||||||||
Salaries
and employee benefits
|
1,199
|
1,456
|
3,573
|
4,175
|
||||||||||||
Equipment
and occupancy expense
|
311
|
354
|
894
|
989
|
||||||||||||
Marketing
expense
|
44
|
57
|
134
|
148
|
||||||||||||
Data
processing expense
|
152
|
175
|
464
|
516
|
||||||||||||
Administrative
expenses
|
233
|
230
|
627
|
833
|
||||||||||||
Legal
and professional
|
107
|
135
|
307
|
394
|
||||||||||||
Directors
fees
|
74
|
78
|
231
|
205
|
||||||||||||
Amortization
of intangible assets
|
9
|
10
|
27
|
32
|
||||||||||||
Stationery
and supply expense
|
31
|
63
|
99
|
177
|
||||||||||||
Other
operating expenses
|
100
|
192
|
338
|
549
|
||||||||||||
Total
other expense
|
2,260
|
2,750
|
6,694
|
8,018
|
||||||||||||
Income
(loss) before income taxes
|
(711 | ) |
855
|
(38 | ) |
1,985
|
||||||||||
Income
tax expense (benefit)
|
(264 | ) |
285
|
(73 | ) |
643
|
||||||||||
Net
Income (loss)
|
(447 | ) |
570
|
35
|
1,342
|
|||||||||||
Basic
earnings (loss) per share
|
$ | (0.15 | ) | $ |
0.19
|
$ |
0.01
|
$ |
0.46
|
|||||||
Diluted earnings
(loss) per share
|
$ | (0.15 | ) | $ |
0.18
|
$ |
0.01
|
$ |
0.44
|
|||||||
Weighted
average common shares outstanding
|
3,057,282
|
2,996,578
|
3,039,250
|
2,947,298
|
||||||||||||
Weighted
average diluted common shares outstanding
|
3,057,282
|
3,074,149
|
3,039,250
|
3,030,709
|
||||||||||||
Dividends
declared per share
|
$ |
.02
|
$ |
.02
|
$ |
.06
|
$ |
.06
|
Community
Capital Bancshares, Inc.
and
Subsidiaries
Consolidated
Statements of Comprehensive Income (unaudited)
|
||||||||||||||||
Three
and nine months ended September 30, 2007 and 2006
(Dollars
in thousands)
|
||||||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30, 2007
|
September
30, 2006
|
September
30, 2007
|
September
30, 2006
|
|||||||||||||
Net
Income (loss)
|
$ | (447 | ) | $ |
570
|
$ |
35
|
$ |
1,342
|
|||||||
Other
comprehensive income:
|
||||||||||||||||
Net
unrealized holding gains arising during the period.
|
590
|
786
|
254
|
165
|
||||||||||||
Tax
expense on unrealized holding gains
|
(201 | ) | (267 | ) | (86 | ) | (56 | ) | ||||||||
Reclassification
adjustment for losses included in net income
|
- -
|
59
|
- -
|
59
|
||||||||||||
Tax
benefit for losses included in net income
|
(20 | ) | (20 | ) | ||||||||||||
Total
other comprehensive income
|
389
|
558
|
168
|
148
|
||||||||||||
Comprehensive
income (loss)
|
$ | (58 | ) | $ |
1,128
|
$ |
203
|
$ |
1,490
|
Community
Capital Bancshares, Inc.
and
Subsidiaries
Consolidated
Statements of Cash Flows (unaudited)
Nine
Months ended September 30, 2007 and 2006
(Dollars
in thousands)
|
2007
|
2006
|
|||||||
Cash
Flows from operating activities:
|
||||||||
Net
income
|
$ |
35
|
$ |
1,342
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
|
320
|
349
|
||||||
Amortization
of core deposit premium
|
27
|
32
|
||||||
Provision
for loan losses
|
1,344
|
937
|
||||||
Provision
for deferred taxes
|
59
|
(58 | ) | |||||
Stock
option expense
|
76
|
-
|
||||||
(Increase)
decrease in interest receivable
|
610
|
(173 | ) | |||||
Gain
on sale of fixed assets
|
(206 | ) |
-
-
|
|||||
Loss
on sale of other real estate owned
|
90
|
-
-
|
||||||
Other
operating activities
|
(2,148 | ) |
514
|
|||||
Net
cash provided by operating activities
|
207
|
2,943
|
||||||
Cash
Flows from Investing Activities:
|
||||||||
Purchase
of property and equipment
|
(228 | ) | (1,991 | ) | ||||
Proceeds
from sale of fixed assets
|
3,236
|
108
|
||||||
Net
(increase) decrease in federal funds sold
|
(12,964 | ) |
1,790
|
|||||
Net
(increase) decrease in loans
|
72,352
|
(13,720 | ) | |||||
Proceeds
from maturities of securities available for sale
|
3,893
|
1,551
|
||||||
Proceeds
from sale of other real estate owned
|
676
|
-
-
|
||||||
Proceeds
from sale of securities
|
-
-
|
4,234
|
||||||
Purchase
of securities available for sale
|
(18,096 | ) | (2,612 | ) | ||||
Purchase
of other securities
|
(128 | ) |
-
-
|
|||||
Net
cash provided by (used in) investing activities
|
48,741
|
(10,640 | ) | |||||
Cash
Flows from Financing Activities:
|
||||||||
Net
increase (decrease) in deposits
|
(46,992 | ) |
18,623
|
|||||
Dividends
paid to shareholders
|
(185 | ) | (182 | ) | ||||
Proceeds
from exercise of stock options
|
238
|
692
|
||||||
Net
decrease in other borrowings
|
(2,000 | ) | (6,000 | ) | ||||
Treasury
stock transactions, net
|
72
|
86
|
||||||
Net
cash provided by(used in) financing activities
|
(48,867 | ) |
13,219
|
|||||
Net
increase in cash
|
81
|
5,522
|
||||||
Cash
and due from banks at beginning of period
|
7,408
|
6,931
|
||||||
Cash
and due from banks at end of period
|
7,489
|
12,453
|
||||||
Supplemental
Disclosure
|
||||||||
Cash
paid for interest
|
$ |
7,723
|
$ |
8,604
|
||||
Income
taxes
|
$ |
440
|
$ |
711
|
||||
Non-Cash
Transaction
|
||||||||
Other
real estate acquired in settlement of loans
|
$ |
1,561
|
-
-
|
|||||
Unrealized
losses on securities available for sale
|
$ |
254
|
$ |
165
|
September
30, 2007
|
December
31, 2006
|
|||||||
Interest
bearing demand and savings
|
$ |
55,351,000
|
$ |
61,242,000
|
||||
Certificates
of deposit in denominations of $100,000 or greater
|
62,130,000
|
96,977,000
|
||||||
Other
certificates of deposit
|
52,559,000
|
59,854,000
|
||||||
Total
|
$ |
170,040,000
|
$ |
218,073,000
|
Tier
1 Capital to risk weighted assets
|
||||
Ratio,
actual
|
18.51 | % | ||
Tier
1 Capital minimum requirement
|
4.00 | % | ||
Tier
2 Capital to risk weighted assets
|
||||
Ratio,
actual
|
19.79 | % | ||
Tier
2 Capital minimum requirement
|
8.00 | % | ||
Tier
1 Leverage Ratio
|
11.49 | % | ||
Tier
1 Leverage Ratio minimum requirement
|
4.00 | % |
September,
2007
|
December,
2006
|
|||||||
Commitments
to extend credit
|
$ |
47,601,000
|
$ |
57,958,000
|
||||
Standby
letters of credit
|
$ |
1,020,000
|
$ |
1,020,000
|
Market
Rate Change
|
Effect
on Net Interest Income
|
(Immediate)
|
|
+200
bps
|
-2.58%
|
+100
bps
|
-2.63%
|
-100
bps
|
-.17%
|
-200
bps
|
-.68%
|
ITEM
1.
|
Legal
Proceedings
|
|
None
|
||
ITEM
1.A.
|
Risk
Factors
|
|
You
should carefully consider the risk factors discussed in Item 1A
of Part I
of our Annual Report on Form 10-K for the year ended December 31,
2006,
which could materially affect our business, financial condition
or future
results. The risks described in our Annual Report on Form 10-K
are not the only risks facing our Company. Additional risks and
uncertainties not currently known to us or that we currently deem
to be
immaterial also may materially adversely affect our business, financial
condition and/or operating results.
|
||
ITEM
2.
|
UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
|
(a)
|
None
|
|
(b)
|
None
|
|
(c)
|
None
|
|
ITEM
3.
|
DEFAULTS
UPON SENIOR SECURITIES
|
|
None
|
||
ITEM
4.
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY HOLDERS
|
|
None
|
||
ITEM
5.
|
OTHER
INFORMATION
|
|
None
|
||
Item
6.
|
Exhibits
|
|
31.1
|
Certification
of the Chief Executive officer pursuant to Rule 13a-14(a) under
the
Securities exchange act of 1934, as amended.
|
|
31.2
|
Certification
of the Chief Financial Officer pursuant to Rule 13a-14(a) under
the
Securities exchange act of 1934, as amended.
|
|
32.1
|
Certification
of the Chief Executive Officer and Chief Financial Officer pursuant
to
Rule 13a-14(b) under the Securities exchange act of 1934, as
amended.
|
Community
Capital Bancshares, Inc.
|
|
November
14, 2007
|
/s/
John H. Monk, Jr.
|
Date
|
John
H. Monk, Jr.
|
Chief
Executive Officer
|
|
November
14, 2007
|
/s/
David J. Baranko
|
Date
|
David
J. Baranko
|
Chief
Financial Officer
|
|
(Duly
authorized officer and
|
|
principal
financial / accounting
|
|
officer)
|