Back to GetFilings.com



Table of Contents


U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

|X| Quarterly report under section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended March 31, 2005 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 0-18460

COMMUNITY CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)

South Carolina
(State or other jurisdiction of incorporation)		 57-0866395
(I.R.S. Employer Identification No.)

1402C Highway 72 West
Greenwood, SC 29649
(Address of principal executive
offices, including zip code)

(864) 941-8200
(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 by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

YES          NO  X  

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING YEAR

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

YES          NO      

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date:

3,875,867 shares of common stock, $1.00 par value, as of April 25, 2005


COMMUNITY CAPITAL CORPORATION

Index


PART I. FINANCIAL INFORMATION Page No.
 
Item 1 - Financial Statements (Unaudited)
 
      Condensed Consolidated Balance Sheets - March 31, 2005 and December 31, 2004 3 
 
      Condensed Consolidated Statements of Operations -
        Three months ended March 31, 2005 and 2004 4 
 
      Condensed Consolidated Statements of Changes in Shareholders’ Equity and Comprehensive Income -
        Three months ended March 31, 2005 and 2004 5 
 
      Condensed Consolidated Statements of Cash Flows -  
      Three months ended March 31, 2005 and 2004 6 
 
      Notes to Condensed Consolidated Financial Statements 7-11 
 
Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations 12-21 
 
Item 3 - Quantitative and Qualitative Disclosure About Market Risk 21 
 
Item 4 - Controls and Procedures 22-23 
 
PART II. OTHER INFORMATION
 
Item 2 - Issuer Repurchase Table 23 
 
Item 5 - Other Information 24 
 
Item 6 - Exhibits and Reports on Form 8-K 24 
 
      (a) Exhibits 24 
 
      (b) Reports on Form 8-K 24 


-2-

Table of Contents

COMMUNITY CAPITAL CORPORATION

Condensed Consolidated Balance Sheets

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

March 31,
2005		 December 31,
2004
(Dollars in thousands) (Unaudited)
Assets            
  Cash and cash equivalents:    
  Cash and due from banks     $ 11,549   $ 9,053  
  Interest-bearing deposit accounts       324     75  
  Fed funds sold       5,839     -  
    Total cash and cash equivalents       17,712     9,128  
Securities:    
  Securities available-for-sale       72,117     71,119  
  Securities held-to-maturity (estimated fair value of $448    
   at March 31, 2005 and $455 at December 31, 2004)       425     425  
  Nonmarketable equity securities       5,238     6,052  
    Total securities       77,780     77,596  
                 
Loans held for sale       1,785     1,256  
                 
Loans receivable       428,192     425,628  
Less allowance for loan losses       (5,875 )   (5,808 )
    Loans, net       422,317     419,820  
                 
Premises and equipment, net       12,687     12,544  
Accrued interest receivable       2,148     2,136  
Intangible assets       11,291     11,107  
Cash surrender value of life insurance       13,026     12,900  
Other assets       2,887     2,599  
    Total assets     $ 561,633   $ 549,086  
     
Liabilities and Shareholders’ Equity    
Deposits:    
  Noninterest-bearing     $ 50,880   $ 45,504  
  Interest-bearing       389,212     334,853  
    Total deposits       440,092     380,357  
Federal funds purchased and securities sold    
 under agreements to repurchase       17,049     43,978  
Advances from the Federal Home Loan Bank       45,300     66,325  
Obligations under capital leases       134     181  
Accrued interest payable       1,032     736  
Other liabilities       2,413     2,406  
    Total liabilities       506,020     493,983  
Shareholders’ Equity    
  Common stock, $1.00 par value; 10,000,000 shares authorized,    
   4,713,233 and 4,660,944 shares issued and outstanding    
   at March 31, 2005 and December 31, 2004, respectively       4,713     4,661  
  Nonvested restricted stock       (824 )   (183 )
  Capital surplus       46,645     45,751  
  Accumulated other comprehensive income       149     785  
  Retained earnings       17,605     16,653  
  Treasury stock at cost; 837,366 and 832,566 shares at March 31, 2005    
   and December 31, 2004, respectively       (12,675 )   (12,564 )
    Total shareholders’ equity       55,613     55,103  
    Total liabilities and shareholders’ equity     $ 561,633   $ 549,086  

See notes to condensed consolidated financial statements.


-3-

Table of Contents

COMMUNITY CAPITAL CORPORATION

Condensed Consolidated Statements of Operations
(Unaudited)

(Dollars in thousands, except per share) Three Months Ended
March 31,
2005 2004
Interest income:            
  Loans, including fees     $ 6,296   $ 4,972  
  Investment securities:    
    Taxable       387     297  
    Tax-exempt       336     305  
    Nonmarketable equity securities       59     33  
  Other interest income       10     5  
    Total       7,088     5,612  
Interest expense:    
  Deposits       1,803     1,089  
  Federal Home Loan Bank advances       399     231  
  Other interest expense       148     84  
    Total       2,350     1,404  
                 
Net interest income       4,738     4,208  
Provision for loan losses       100     100  
Net interest income after provision for loan losses       4,638     4,108  
Noninterest income:    
  Service charges on deposit accounts       730     567  
  Residential mortgage origination fees       178     230  
  Commissions from sales of mutual funds       39     53  
  Income from fiduciary activities       206     125  
  Gain on sales of securities available-for-sale       21     -  
  Other operating income       322     221  
    Total       1,496     1,196  
Noninterest expenses:    
  Salaries and employee benefits       2,327     2,081  
  Net occupancy expense       246     223  
  Amortization of intangible assets       131     103  
  Furniture and equipment expense       231     213  
  Other operating expenses       1,130     1,085  
    Total       4,065     3,705  
                 
Income before income taxes       2,069     1,599  
Income tax provision       536     325  
                 
Net income     $ 1,533   $ 1,274  
                 
Basic net income per share     $ 0.40   $ 0.35  
Diluted net income per share     $ 0.39   $ 0.34  

See notes to condensed consolidated financial statements.


-4-

Table of Contents

COMMUNITY CAPITAL CORPORATION

Condensed Consolidated Statements of Changes in Shareholders’ Equity and Comprehensive Income
for the three months ended March 31, 2005 and 2004
(Unaudited)

(Dollars in thousands) Common Stock   Nonvested
Restricted		   Capital   Retained   Accumulated
Other
Comprehensive		   Treasury    
  Shares   Amount   Stock   Surplus   Earnings   Income   Stock   Total
Balance                                    
 December 31, 2003       4,175,919   $ 4,176   $ -   $ 37,375   $ 12,791   $ 869   $ (9,678 ) $ 45,533  
                                                     
Net income       -     -     -     -     1,274     -     -     1,274  
     
Other    
 comprehensive    
 income, net of tax       -     -     -     -     -     777     -     777  
Comprehensive    
 income       -     -     -     -     -     -     -     47,584  
                                                     
Exercise of stock options       47,666     48     -     473     -     -     -     521  
     
Abbeville Capital    
Corporation Merger    
Consideration       371,695     372     -     7,240     -     -     -     7,612  
     
Dividends paid    
 ($0.12 per share)       -     -     -     -     (421 )   -     -     (421 )
Balance,    
 March 31, 2004       4,595,280   $ 4,596   $ -   $ 45,088   $ 13,644   $ 1,646   $ (9,678 ) $ 55,296