Georgia
(State
or other jurisdiction of
Incorporation
or organization)
|
58-2413468
(IRS
Employer
Identification
No.)
|
Large
Accelerated Filer o
|
Accelerated
Filer o
|
Non-Accelerated
Filer x
|
PART
I - FINANCIAL INFORMATION
|
Page
No.
|
|||
ITEM
1.
|
Financial Statements | |||
3
|
||||
4
|
||||
|
||||
5
|
||||
|
|
|||
6
|
||||
|
||||
11
|
||||
15
|
||||
15
|
||||
PART
II - OTHER INFORMATION
|
||||
17
|
||||
17
|
||||
17
|
||||
17
|
||||
17
|
||||
17
|
||||
17
|
and
Subsidiaries
|
||||||||||||||||||||||||
Consolidated
Balance Sheets
|
||||||||||||||||||||||||
(Dollars
in thousands)
|
September
30,
2006
(unaudited)
|
December
31,
2005
|
||||||
Assets
|
|||||||
Cash
and due from banks
|
$
|
12,453
|
$
|
6,931
|
|||
Federal
funds sold
|
6,881
|
8,671
|
|||||
Securities
available for sale
|
38,488
|
41,690
|
|||||
Restricted
equity securities
|
2,294
|
2,426
|
|||||
Loans
|
244,304
|
230,908
|
|||||
Less
allowance for loan losses
|
3,613
|
3,000
|
|||||
Loans,
net
|
240,691
|
227,908
|
|||||
Premises
and equipment
|
9,416
|
7,892
|
|||||
Goodwill
|
2,334
|
2,334
|
|||||
Core
deposit premium
|
250
|
282
|
|||||
Other
assets
|
12,471
|
11,323
|
|||||
Total
Assets
|
$
|
325,278
|
$
|
309,457
|
|||
Liabilities
and Shareholders' Equity
|
|||||||
Deposits
|
|||||||
Non-interest
bearing
|
$
|
29,814
|
$
|
22,745
|
|||
Interest
bearing
|
234,378
|
222,824
|
|||||
Total
deposits
|
264,192
|
245,569
|
|||||
Other
borrowings
|
27,000
|
33,000
|
|||||
Guaranteed
preferred beneficial interests in junior subordinated
debentures
|
4,124
|
4,124
|
|||||
Other
liabilities
|
2,425
|
1,369
|
|||||
Total
Liabilities
|
297,741
|
284,062
|
|||||
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;
|
|||||||
3,072,210
and 2,973,356 shares issued
|
3,072
|
2,973
|
|||||
Capital
surplus
|
22,944
|
22,246
|
|||||
Retained
earnings
|
2,629
|
1,468
|
|||||
Accumulated
other comprehensive loss
|
(697
|
)
|
(845
|
)
|
|||
Less
cost of treasury stock, 54,979 and 59,851 shares as of September
30, 2006
and December 31, 2005 respectively
|
(411
|
)
|
(447
|
)
|
|||
Total
Shareholders' equity
|
27,537
|
25,395
|
|||||
Total
Liabilities and Shareholders' Equity
|
$
|
325,278
|
$
|
309,457
|
and
Subsidiaries
Consolidated
Statements of Operations (unaudited)
For
the three and nine months ended September 30, 2006 and
2005
(Dollars
in thousands, except earnings per
share)
|
Three
months ended
|
Nine
months ended
|
||||||||||||
September
30, 2006
|
September
30, 2005
|
September
30, 2006
|
September
30, 2005
|
||||||||||
Interest
Income
|
|||||||||||||
Loans
|
$
|
5,556
|
$
|
3,540
|
$
|
15,810
|
$
|
8,754
|
|||||
Investment
securities
|
473
|
423
|
1,410
|
1,318
|
|||||||||
Deposits
in banks
|
6
|
6
|
17
|
14
|
|||||||||
Federal
funds sold
|
21
|
40
|
205
|
100
|
|||||||||
Total
interest income
|
6,056
|
4,009
|
17,442
|
10,186
|
|||||||||
Interest
expense
|
|||||||||||||
Deposits
|
2,681
|
1,340
|
7,402
|
2.987
|
|||||||||
Other
borrowed money
|
399
|
391
|
1,260
|
937
|
|||||||||
Total
interest expense
|
3,080
|
1,731
|
8,662
|
3,924
|
|||||||||
Net
interest income
|
2,976
|
2,278
|
8,780
|
6,262
|
|||||||||
Provision
for loan losses
|
124
|
370
|
937
|
800
|
|||||||||
Net
interest income after provision for loan losses
|
2,852
|
1,908
|
7,843
|
5,462
|
|||||||||
Other
income
|
|||||||||||||
Service
charges on deposit accounts
|
303
|
277
|
958
|
748
|
|||||||||
Financial
service fees
|
54
|
71
|
161
|
140
|
|||||||||
Mortgage
origination fees
|
290
|
257
|
720
|
341
|
|||||||||
Loss
on sale of investment securities
|
(59
|
)
|
—
|
(59
|
)
|
—
|
|||||||
Gain
(loss) on sale of foreclosed properties
|
(90
|
)
|
10
|
(109
|
)
|
(7
|
)
|
||||||
Increase
in cash surrender value of bank owned life insurance
policies
|
63
|
60
|
185
|
181
|
|||||||||
Other
operating income
|
192
|
31
|
304
|
123
|
|||||||||
Total
other income
|
753
|
706
|
2,160
|
1,526
|
|||||||||
Other
expenses
|
|||||||||||||
Salaries
and employee benefits
|
1,456
|
1,110
|
4,175
|
2,860
|
|||||||||
Equipment
and occupancy expense
|
354
|
309
|
989
|
872
|
|||||||||
Marketing
expense
|
57
|
50
|
148
|
148
|
|||||||||
Data
processing expense
|
175
|
148
|
516
|
454
|
|||||||||
Administrative
expenses
|
230
|
180
|
833
|
471
|
|||||||||
Legal
and professional
|
135
|
84
|
394
|
294
|
|||||||||
Directors
fees
|
78
|
63
|
205
|
187
|
|||||||||
Amortization
of intangible assets
|
10
|
12
|
32
|
36
|
|||||||||
Stationery
and supply expense
|
63
|
47
|
177
|
138
|
|||||||||
Loss
on other than temporarily impaired security
|
—
|
763
|
—
|
763
|
|||||||||
Other
operating expenses
|
192
|
195
|
549
|
431
|
|||||||||
Total
other expense
|
2,750
|
2,961
|
8,018
|
6,654
|
|||||||||
Income
before income taxes
|
855
|
(347
|
)
|
1,985
|
334
|
||||||||
Income
tax expense
|
285
|
(142
|
)
|
643
|
48
|
||||||||
Net
Income (loss)
|
$
|
570
|
$
|
(205
|
)
|
$
|
1,342
|
$
|
286
|
||||
Basic
earnings per share
|
$
|
.19
|
$
|
(.07
|
)
|
$
|
.46
|
$
|
.10
|
||||
Diluted earnings
per share
|
$
|
.18
|
$
|
(.07
|
)
|
$
|
.44
|
$
|
.09
|
||||
Weighted
average common shares outstanding
|
2,996,578
|
2,913,365
|
2,947,298
|
2,907,168
|
|||||||||
Weighted
average diluted common shares outstanding
|
3,074,149
|
3,052,124
|
3,030,709
|
3,054,440
|
|||||||||
Dividends
Declared per share
|
.02
|
.02
|
.06
|
.06
|
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
September
30, 2006
|
September
30, 2005
|
September
30, 2006
|
September
30, 2005
|
||||||||||
Net
Income
|
$
|
570
|
$
|
(205
|
)
|
$
|
1,342
|
$
|
286
|
||||
Other
comprehensive income (loss)
|
|||||||||||||
Net
unrealized holding gains (losses) arising during the
period.
|
786
|
(814
|
)
|
165
|
(1,047
|
)
|
|||||||
Tax
benefit (expense) on unrealized holding gains
|
(267
|
)
|
277
|
(56
|
)
|
356
|
|||||||
Reclassification
adjustment for losses included in net income
|
59
|
59
|
|||||||||||
Tax
benefit for losses included in net income
|
(20
|
)
|
—
|
(20
|
)
|
—
|
|||||||
Recognized
loss from other than temporarily impaired security
|
—
|
763
|
—
|
763
|
|||||||||
Tax
benefit from recognition of loss
|
—
|
(259
|
)
|
(259
|
)
|
||||||||
Total
other comprehensive income (loss)
|
558
|
(33
|
)
|
148
|
(187
|
)
|
|||||||
Comprehensive
income (loss)
|
$
|
1,128
|
$
|
(238
|
)
|
$
|
1,490
|
$
|
99
|
and
Subsidiaries
Consolidated
Statements of Cash Flows (unaudited)
Nine
Months ended September 30, 2006 and 2005
(Dollars
in thousands)
|
2006
|
2005
|
||||||
Cash
Flows from operating activities:
|
$
|
1,342
|
$
|
286
|
|||
Net
income
|
|||||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|||||||
Depreciation
|
349
|
324
|
|||||
Amortization
of core deposit premium
|
32
|
36
|
|||||
Provision
for loan losses
|
937
|
800
|
|||||
Provision
for deferred taxes
|
(58
|
)
|
(30
|
)
|
|||
Increase
in interest receivable
|
(173
|
)
|
(419
|
)
|
|||
Recognized
loss from other than temporarily impaired security
|
—
|
763
|
|||||
Other
operating activities
|
514
|
(370
|
)
|
||||
Net
cash provided by operating activities
|
2,943
|
1,390
|
|||||
Cash
Flows from Investing Activities:
|
|||||||
Purchase
of property and equipment
|
(1,991
|
)
|
(2,002
|
)
|
|||
Net
(increase) decrease in federal funds sold
|
1,790
|
(6,859
|
)
|
||||
Net
increase in loans
|
(13,720
|
)
|
(76,607
|
)
|
|||
Proceeds
from maturities of securities available for sale
|
1,551
|
1,024
|
|||||
Proceeds
from sale of securities
|
4,234
|
1,980
|
|||||
Purchase
of securities available for sale
|
(2,612
|
)
|
(4,171
|
)
|
|||
Proceeds
for sale of fixed assets
|
108
|
—
|
|||||
Net
cash used in investing activities
|
(10,640
|
)
|
(86,635
|
)
|
|||
Cash
Flows from Financing Activities:
|
|||||||
Net
increase in deposits
|
18,623
|
80,651
|
|||||
Dividends
paid to shareholders
|
(182
|
)
|
(178
|
)
|
|||
Proceeds
from exercise of stock options
|
692
|
214
|
|||||
Net
increase (decrease) in other borrowings
|
(6,000
|
)
|
7,847
|
||||
Treasury
stock transactions, net
|
86
|
(16
|
)
|
||||
Net
cash provided by financing activities
|
13,219
|
88,518
|
|||||
Net
increase in cash
|
5,522
|
3,273
|
|||||
Cash
and due from banks at beginning of period
|
6,931
|
5,515
|
|||||
Cash
and due from banks at end of period
|
12,453
|
8,788
|
|||||
Supplemental
Disclosure
|
|||||||
Cash
paid for interest
|
$
|
8,604
|
$
|
3,704
|
|||
Income
taxes
|
$
|
711
|
$
|
—
|
|||
Non-Cash
Transaction
|
|||||||
Unrealized
gains (losses) on securities available for sale
|
|||||||
$
|
165
|
$
|
(284
|
)
|
For
The Three
Months
Ended
September
30, 2006
($000)
|
For
The Three
Months
Ended
September
30, 2005
($000)
|
For
The Nine
Months
Ended
September
30, 2006
($000)
|
For
The Nine
Months
Ended
September
30, 2005
($000)
|
||||||||||
Net
income, as reported
|
$
|
570
|
$
|
(205
|
)
|
$
|
1,342
|
$
|
286
|
||||
Add:
|
|||||||||||||
Stock-based
employee compensation
|
|||||||||||||
included
in reported net income,
|
|||||||||||||
net
of related tax effects
|
29
|
78
|
|||||||||||
Deduct:
|
|||||||||||||
Total
stock-based employee
|
|||||||||||||
compensation
expense
|
|||||||||||||
determined
under fair value
|
|||||||||||||
method,
net of related tax effects
|
(29
|
)
|
(30
|
)
|
(78
|
)
|
(82
|
)
|
|||||
Pro
forma net earnings
|
$
|
570
|
$
|
(235
|
)
|
$
|
1,342
|
204
|
|||||
Earnings
per share:
|
|||||||||||||
Basic
- as reported
|
$
|
.19
|
$
|
(.07
|
)
|
$
|
.46
|
$
|
.10
|
||||
Basic
- pro forma
|
$
|
.19
|
$
|
(.08
|
)
|
$
|
.46
|
$
|
.07
|
||||
Diluted
- as reported
|
$
|
.18
|
$
|
(.07
|
)
|
$
|
.44
|
$
|
.09
|
||||
Diluted
- pro forma
|
$
|
.18
|
$
|
(.08
|
)
|
$
|
.44
|
$
|
.07
|
Period
Ended
September
30, 2006
|
Year
Ended
December
31, 2005
|
||||||||||||||||||||||||
Number
|
Weighted-
Average Exercise Price
|
Weighted-
Average Remaining Contractual Term
|
Aggregate
Intrinsic Value
($000)
|
Number
|
Weighted-
Average Exercise Price
|
Average
Remaining Contractual Term
|
Aggregate
Intrinsic Value
($000)
|
||||||||||||||||||
Under
option, beginning
|
374,621
|
9.81
|
6.37
|
$
|
408
|
305,435
|
9.33
|
||||||||||||||||||
of
the period:
|
|||||||||||||||||||||||||
Granted
|
58,296
|
10.64
|
86,185
|
11.20
|
|||||||||||||||||||||
Exercised
|
(77,000
|
)
|
7.00
|
(5,596
|
)
|
10.06
|
|||||||||||||||||||
Forfeited
|
(85,356
|
)
|
12.03
|
(11,400
|
)
|
10.94
|
|||||||||||||||||||
Under
option, end of
|
|||||||||||||||||||||||||
the
period
|
270,561
|
9.96
|
4.89
|
623
|
374,621
|
9.81
|
6.37
|
$
|
408
|
||||||||||||||||
Unvested
at the end of the period
|
138,259
|
10.93
|
8.18
|
184
|
168,190
|
11.43
|
8.50
|
$
|
—
|
||||||||||||||||
Vested
and exercisable at the
|
|||||||||||||||||||||||||
end
of the period
|
132,202
|
8.94
|
6.71
|
439
|
206,431
|
8.32
|
4.64
|
$
|
532
|
||||||||||||||||
Weighted-average
fair
|
|||||||||||||||||||||||||
value
per option of options
|
|||||||||||||||||||||||||
granted
during the year
|
$
|
4.11
|
$
|
3.76
|
Period
Ended
|
Year
Ended
|
||||||
September
30, 2006
|
December
31, 2005
|
||||||
Risk-free
interest rate
|
4.91
|
%
|
4.40
|
%
|
|||
Expected
life of the options
|
10
years
|
10
years
|
|||||
Expected
dividend yield
|
0.78
|
%
|
.78
|
%
|
|||
Expected
volatility
|
20.25
|
%
|
14.83%
- 15.96
|
%
|
Shares
|
Weighted-Average
Grant-Date
Fair
Value
|
||||||
Nonvested
at January 1, 2006
|
168,193
|
$
|
4.17
|
||||
Granted
|
58,296
|
||||||
Vested
|
(27,230
|
)
|
|||||
Forfeited
|
(61,000
|
)
|
|||||
Nonvested
at September 30, 2006
|
138,259
|
$
|
4.25
|
September
30, 2006
|
|
December
31, 2005
|
|||||
Interest
bearing demand and savings
|
$
|
65,325,000
|
$
|
56,538,000
|
|||
Certificates
of deposit in denominations of $100,000 or greater
|
106,553,000
|
113,197,000
|
|||||
Other
Certificates of deposit
|
62,500,000
|
53,089,000
|
|||||
Total
|
$
|
234,378,000
|
$
|
222,824,000
|
Tier
1 Capital to risk weighted assets
|
||||
Ratio,
actual
|
12.73
|
%
|
||
Tier
1 Capital minimum requirement
|
4.00
|
%
|
||
Tier
2 Capital to risk weighted assets
|
||||
Ratio,
actual
|
13.98
|
%
|
||
Tier
2 Capital minimum requirement
|
8.00
|
%
|
||
Tier
1 Leverage Ratio
|
8.93
|
%
|
||
Tier
1 Leverage Ratio minimum requirement
|
4.00
|
%
|
|
September-06
|
December-05
|
|||||
Commitments
to extend credit
|
$
|
73,202,000
|
$
|
71,362,000
|
|||
Standby
letters of credit
|
$
|
1,020,000
|
$
|
1,293,000
|
ITEM 1. |
ITEM 1.A. |
(a) |
None
|
(b) |
None
|
(c) |
None
|
ITEM 3. |
ITEM 5. |
Item 6. |
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
13,
2006
|
/s/ John H. Monk, Jr. | |
Date
|
Date
John H. Monk, Jr.
Chief
Executive Officer
|
November
13,
2006
|
/s/ David J. Baranko | |
Date
|
David
J. Baranko
Chief
Financial Officer
(Duly
authorized officer and
principal
financial / accounting
officer)
|