SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(MARK ONE) FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
X OF THE SECURITIES EXCHANGE ACT OF 1934
-----
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1998
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 (I.R.S. Employer
of 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, $5.00 PAR VALUE
PAGE 1 OF 14
EXHIBIT INDEX ON PAGE 2
<PAGE>
COMMUNITYCORP
INDEX
<TABLE>
<S> <C>
PART I. FINANCIAL INFORMATION Page No.
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets - June 30, 1998 and December 31, 1997...........................................3
Condensed Consolidated Statements of Income - Six months ended June 30, 1998 and 1997
and Three months ended June 30, 1998 and 1997.........................................................................4
Condensed Consolidated Statement of Shareholders' Equity - Six months ended June 30, 1998.............................5
Condensed Consolidated Statements of Cash Flows - Six months ended June 30, 1998 and 1997.............................6
Notes to Condensed Consolidated Financial Statements..................................................................7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations..............................7-12
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders..................................................................13
Item 6. Exhibits and Reports on Form 8-K.....................................................................................13
(a) Exhibits.........................................................................................................13
(b) Reports on Form 8-K..............................................................................................13
</TABLE>
2
<PAGE>
COMMUNITYCORP
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<S> <C>
JUNE 30, DECEMBER 31,
1998 1997
ASSETS: ------------------- -------------------
Cash and cash equivalents:
Cash and due from banks $ 2,899,878 $ 2,602,260
Federal funds sold & repurchase agreements 8,400,000 3,130,000
------------------- -------------------
11,299,878 5,732,260
Securities available-for-sale 8,628,199 9,394,736
Securities held-to-maturity (estimated market value
of $4,542,529 and $6,343,032 at June 30, 1998
and December 31, 1997, respectively) 4,495,025 6,301,318
Loans receivable 46,254,026 41,357,114
Less allowance for loan losses (766,749) (743,260)
------------------- ----------------
Loans, net 45,487,277 40,613,854
Accrued interest receivable 711,612 726,318
Premises, furniture & equipment, net 1,977,859 1,999,055
Other assets 333,161 307,321
------------------- -------------------
Total assets $ 72,933,011 $ 65,074,862
=================== ===================
LIABILITIES AND SHAREHOLDERS' EQUITY:
Liabilities:
Deposits:
Non-interest bearing $ 6,682,674 $ 6,063,801
Interest bearing 57,794,139 50,879,287
------------------- -------------------
64,476,813 56,943,088
Short-term borrowings 370,000 480,000
Accrued interest payable 371,385 342,661
Other liabilities 96,028 75,553
------------------- -------------------
Total liabilities 65,314,226 57,841,302
------------------- -------------------
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 41,565 38,431
Retained earnings 4,372,923 3,991,832
Treasury stock (1,543 shares in 1998 and 1,083 shares in 1997) (27,411) (28,411)
------------------- -------------------
Total shareholders' equity 7,618,785 7,233,560
------------------- -------------------
Total liabilities and shareholders' equity $ 72,933,011 $ 65,074,862
=================== ===================
See notes to condensed consolidated financial statements.
</TABLE>
3
<PAGE>
<TABLE>
COMMUNITYCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<S> <C>
Six Months Ended Three Months Ended
June 30, June 30,
---------------------------------------- ----------------------------------------
1998 1997 1998 1997
----------------- ------------------- ------------------- ------------------
Interest income:
Loans, including fees $ 2,088,097 $ 1,688,116 $ 1,080,477 $ 853,550
Securities 425,342 509,386 207,556 253,469
Other interest income 163,415 88,995 97,185 54,294
------------------ ------------------ ------------------ ------------------
Total 2,676,854 2,286,497 1,385,218 1,161,313
------------------ ------------------ ------------------ ------------------
Interest expense:
Deposit accounts 1,216,667 1,035,651 628,115 519,427
Other interest expense 10,302 2,856 4,866 2,856
------------------ ------------------ ------------------ ------------------
1,226,969 1,038,507 632,981 522,283
------------------ ------------------ ------------------ ------------------
Net interest income 1,449,885 1,247,990 752,237 639,030
Provision for loan losses 80,000 65,000 50,000 35,000
------------------ ------------------ ------------------ ------------------
Net interest income after
provision for loan losses 1,369,885 1,182,990 702,237 604,030
------------------ ------------------ ------------------ ------------------
Other operating income:
Service charges 141,414 117,003 73,867 59,855
Other income 17,364 11,777 5,012 4,842
------------------ ------------------ ------------------ ------------------
Total 158,778 128,780 78,879 64,697
------------------ ------------------ ------------------ ------------------
Other operating expenses:
Salaries and benefits 401,389 269,013 200,504 128,449
Net occupancy expense 58,968 37,538 28,652 18,837
Equipment expense 112,106 84,847 54,494 42,818
Other operating expenses 255,060 213,644 132,411 109,777
------------------ ------------------ ------------------ ------------------
Total 827,523 605,042 416,061 299,881
------------------ ------------------ ------------------ ------------------
Income before taxes 701,140 706,728 365,055 368,846
Income tax provision 227,540 237,500 116,040 125,500
------------------ ------------------ ------------------ ------------------
Net income 473,600 469,228 249,015 243,346
================== ================== ================== ==================
Other comprehensive income, net of tax:
Unrealized gains (losses) on securities
during the period 3,134 (52,296) 2,012 30,956
------------------ ------------------ ------------------ ------------------
Other comprehensive income 3,134 (52,296) 2,012 30,956
------------------ ------------------ ------------------ ------------------
Comprehensive income $ 476,734 $ 416,932 $ 251,027 $ 274,302
================== ================== ================== ==================
Earnings per share:
Weighted average common shares
outstanding 298,660 298,878 298,674 298,850
================== ================== ================== ==================
Net income per common share $ 1.59 $ 1.57 $ .83 $ 0.81
================== ================== ================== ==================
See notes to condensed consolidated financial statements.
</TABLE>
4
<PAGE>
<TABLE>
COMMUNITYCORP
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 1998
(UNAUDITED)
<S> <C>
Accumulated
Common Stock Other Total
-------------------------- Capital Comprehensive Retained Treasury Shareholders'
Shares Amount Surplus Income Earnings Stock Equity
------ ------ -------- ------- -------- ------ ------
Balance,
December 31, 1997 300,000 $ 1,500,000 $ 1,731,708 $ 38,431 $ 3,991,832 $ (28,411) $ 7,233,560
Cash dividends declared
- $.31 per share (92,509) (92,509)
Other comprehensive
income 3,134 3,134
Sale of treasury stock 1,000 1,000
Net income
for the period 473,600 473,600
------------ ------------ ------------ ------------ ------------- ------------ ------------
Balance,
June 30, 1998 300,000 $ 1,500,000 $ 1,731,708 $ 41,565 $ 4,372,923 $ (27,411) $ 7,618,785
============ ============ ============ ============ ============= ============ ============
See notes to condensed consolidated financial statements.
</TABLE>
5
<PAGE>
<TABLE>
COMMUNITYCORP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<S> <C>
Six Months Ended
June 30,
----------------------------------------
1998 1997
CASH FLOWS FROM OPERATING ACTIVITIES: -------------------- ------------------
Net income $ 473,600 $ 469,228
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 93,425 81,400
Provision for possible loan losses 80,000 65,000
Amortization less accretion on investments (4,219) 4,558
Amortization of deferred loan costs 13,433 20,659
(Increase) decrease in interest receivable and other assets (69,903) 31,905
Increase (decrease) in interest payable and other liabilities 106,303 14,124
------------------ ------------------
Net cash provided by operating activities 692,639 686,874
------------------ ------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net increase in loans to customers (4,966,856) (857,369)
Purchases of securities available-for-sale (2,299,349) (626,275)
Maturities of securities available-for-sale 3,077,957 428,925
Purchases of securities held-to-maturity (409,567) -
Maturities of securities held-to-maturity 2,212,809 695,654
Purchases of premises and equipment (73,657) (274,054)
Disposal of premises and equipment 1,426 6,313
------------------ ------------------
Net cash used by investing activities (2,457,237) (626,806)
------------------ ------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits accounts 7,533,725 2,164,993
Increase (decrease) in short-term borrowings (110,000) 740,000
Sale (purchase) of treasury stock 1,000 (10,000)
Dividends paid (92,509) (83,696)
------------------- ------------------
Net cash provided by financing activities 7,332,216 2,811,297
------------------ ------------------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 5,567,618 2,871,365
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 5,732,260 3,022,087
------------------ ------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 11,299,878 $ 5,893,452
================== ==================
Cash paid during the period for:
Income taxes $ 254,800 $ 174,000
Interest $ 1,198,245 $ 1,018,158
See notes to condensed consolidated financial statements.
</TABLE>
6
<PAGE>
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 June 30, 1998 and for the interim periods ended June
30, 1998 and 1997 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, 1997 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 1997 Annual Report.
NOTE 2 - ADOPTION OF ACCOUNTING PRINCIPLE
As of January 1, 1998, the Company adopted Statement of Financial Accounting
Standards No. 130 (SFAS 130), "Reporting Comprehensive Income." SFAS 130
establishes standards for reporting comprehensive income. Comprehensive income
includes net income and other comprehensive income which is defined as non-owner
related transactions in equity. Prior periods have been reclassified to reflect
the application of the provisions of SFAS 130. The following table sets forth
the amounts of other comprehensive income included in equity along with the
related tax effect for the six months ended June 30, 1998 and 1997 and for the
three months ended June 30, 1998 and 1997:
<TABLE>
<S> <C>
Pre-tax (Expense) Net of tax
FOR THE SIX MONTHS ENDED JUNE 30, 1998: Amount Benefit Amount
------------------- ------------------- ----------------
Net unrealized gains (losses) on securities
available for sale arising in 1998 $ 4,790 $ (1,656) $ 3,134
------------------- ------------------- ----------------
Other comprehensive income $ 4,790 $ (1,656) $ 3,134
=================== =================== ================
Pre-tax (Expense) Net of tax
FOR THE SIX MONTHS ENDED JUNE 30, 1997: Amount Benefit Amount
------------------- ------------------- ----------------
Net unrealized gains (losses) on securities
available for sale arising in 1997 $ (79,841) $ 27,545 $ (52,296)
------------------- ------------------- ----------------
Other comprehensive income $ (79,841) $ 27,545 $ (52,296)
=================== =================== ================
Pre-tax (Expense) Net of tax
FOR THE THREE MONTHS ENDED JUNE 30, 1998: Amount Benefit Amount
------------------- ------------------- ----------------
Net unrealized gains (losses) on securities
available for sale arising in 1998 $ 3,072 $ (1,060) $ 2,012
------------------- ------------------- ----------------
Other comprehensive income $ 3,072 $ (1,060) $ 2,012
=================== =================== ================
</TABLE>
7
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COMMUNITYCORP
NOTE 2 - ADOPTION OF ACCOUNTING PRINCIPLE -- continued
<TABLE>
<S> <C>
Pre-tax (Expense) Net of tax
FOR THE THREE MONTHS ENDED JUNE 30, 1997: Amount Benefit Amount
------------------- ------------------- ----------------
Net unrealized gains (losses) on securities
available for sale arising in 1997 $ 47,261 $ (16,305) $ 30,956
------------------- ------------------- ----------------
Other comprehensive income $ 47,261 $ (16,305) $ 30,956
=================== =================== ================
</TABLE>
Accumulated other comprehensive income consists solely of the unrealized gain on
securities available for sale, net of the deferred tax effects.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
The following is a discussion of the Company's financial condition as of June
30, 1998 compared to December 31, 1997, and the results of operations for the
three and six months ended June 30, 1998 compared to the three and six months
ended June 30, 1997. 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 six months ended June 30, 1998, net interest income increased $201,895
or 16.20% over the same period in 1997. The net interest margin realized on
earning assets increased slightly from 4.49% for the six months ended June 30,
1997 to 4.57% for the same period in 1998. Yields on earning assets increased
slightly as a result of growth in loans while the increase in certificates of
deposit resulted in higher yields on interest bearing liabilities. The interest
rate spread decreased by 4 basis points from 3.75% at June 30, 1997 to 3.79% at
June 30, 1998.
Net interest income increased from $639,030 for the quarter ending June 30, 1997
to $752,237 for the quarter ending June 30, 1998. This represents an increase of
$113,207 or 17.72%. The net interest margin realized on earning assets increased
from 4.52% for the quarter ended June 30, 1997 to 4.65% for the quarter ended
June 30, 1998. The interest rate spread also increased by 21 basis points from
3.78% at June 30, 1997 to 3.99% at June 30, 1998.
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 six months ended June 30, 1998, the provision
charged to expense was $80,000. The increase of $15,000 from the comparable
period in 1997 is a result of management's efforts to increase the allowance for
loan losses to match the growth in the loan portfolio. For the quarter ended
June 30, 1998 and 1997, the provision charged to expense was $50,000 and 35,000,
respectively. Based on present information, management believes the allowance
for loan losses is adequate at June 30, 1998 to meet presently known and
inherent risks in the loan portfolio.
8
<PAGE>
COMMUNITYCORP
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS -- continued
NON-INTEREST INCOME
Non-interest income during the six months ended June 30, 1998 was $158,778, an
increase of $29,998 or 23.29% from the comparable period in 1997. The increase
is primarily a result of an increase in service charges from $117,003 at June
30, 1997 to $141,414 at June 30, 1998. Overdraft and NSF fees increased by
$12,485 to $93,475 at June 30, 1998. This change is a result of the increase in
deposit accounts over the two periods. Deposits at June 30, 1997 were
$52,230,191 compared to $64,476,813 at June 30, 1998.
For the quarter ended June 30, 1998, non-interest income increased $14,182 or
21.92% over the same period in 1997. This increase is primarily due to service
charges which increased $14,012 or 23.41% from the quarter ended June 30, 1997
to the quarter ended June 30, 1998.
NON-INTEREST EXPENSE
Total non-interest expense for the six months ended June 30, 1998 was $827,523
or 36.77% higher than the six months ended June 30, 1997. Salaries and employee
benefits increased from $269,013 at June 30, 1997 to $401,389 for the six months
ended June 30, 1998. This increase is due to annual pay raises and salaries for
the staff of the Ravenel branch that opened in October 1997.
For the quarter ended June 30, 1998, non-interest expense increased $116,180 or
38.74% over the same period in 1997. The largest increase between the quarter
ended June 30, 1998 and the quarter ended June 30, 1997 was in salaries and
benefits which increased $72,055 or 56.10%. As mentioned above, 1998 included
salaries for the Ravenel branch that did not exist in 1997.
INCOME TAXES
The income tax provision for the six months ended June 30, 1998 was $227,540 as
compared to $237,500 for the same period in 1997. The effective tax rates were
32.45% and 33.60% at June 30, 1998 and 1997, respectively. The effective tax
rates were 31.79% and 34.02% for the quarter ended June 30, 1998 and June 30,
1997, respectively.
NET INCOME
The combination of the above factors resulted in net income for the six months
ended June 30, 1998 of $473,600 as compared to $469,228 for the same period in
1997. This represents an increase of $4,372 or 0.93% over the same period in
1997. For the quarter ended June 30, 1998, net income was $249,015 as compared
to $243,346 for the quarter ended June 30, 1997. This represents an increase of
$5,669 or 2.33% from the quarter ending June 30, 1998 as compared to the quarter
ending June 30, 1997.
ASSETS AND LIABILITIES
During the first six months of 1998, total assets increased $7,858,149 or 12.08%
when compared to December 31, 1997. The primary reason for the increase in
assets was due to an increase in federal funds sold and repurchase agreements of
$5,270,000 during the first six months of 1998. In addition, loans increased
$4,896,912 or 11.84% from December 31, 1997 to June 30, 1998. Total deposits
increased $7,533,725 or 13.22% from the December 31, 1997 amount of $56,943,088.
Within the deposit area, certificates of deposit increased $4,870,267 or 19.81%
during the first six months of 1998.
9
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COMMUNITYCORP
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS -- continued
INVESTMENT SECURITIES
Investment securities decreased from $15,696,054 at December 31, 1997 to
$13,123,224 at June 30, 1998. Securities held-to-maturity decreased $1,806,293
or 28.67% from December 31, 1997 to June 30, 1998. The maturing funds were
invested in higher yielding loans.
LOANS
The demand for loans increased significantly in the Walterboro marketplace
during the first six months of 1998. Net loans increased $4,873,423 or 12.00%
during the period. Balances within the major loans receivable categories as of
June 30, 1998 and December 31, 1997 are as follows:
<TABLE>
<S> <C>
June 30, December 31,
1998 1997
-------------------- ---------------------
Commercial and industrial $ 30,740,436 $ 28,463,885
Real estate 6,494,873 5,080,608
Consumer 8,505,604 7,104,280
Agricultural 232,668 265,792
Other, net 280,445 442,549
-------------------- --------------------
$ 46,254,026 $ 41,357,114
==================== ====================
RISK ELEMENTS IN THE LOAN PORTFOLIO
The following is a summary of risk elements in the loan portfolio:
June 30,
---------------------------------------------
1998 1997
-------------------- ---------------------
Loans: Nonaccrual loans $ 605,974 $ 613,875
Accruing loans more than 90
days past due $ 7,419 $ 9,256
Loans identified by the internal review mechanism:
Criticized $ 202,615 $ 210,007
Classified $ 717,696 $ 626,810
</TABLE>
10
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COMMUNITYCORP
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS -- continued
RISK ELEMENTS IN THE LOAN PORTFOLIO -- continued
Activity in the Allowance for Loan Losses is as follows:
<TABLE>
<S> <C>
June 30,
---------------------------------------------
1998 1997
-------------------- --------------------
Balance, January 1, $ 743,260 $ 638,688
Provision for loan losses for the period 80,000 65,000
Net loans (charged off) recovered for
the period (36,511) (7,448)
-------------------- --------------------
Balance, end of period $ 786,749 $ 696,240
==================== ====================
Gross loans outstanding, end of period $ 46,254,026 $ 35,983,107
Allowance for Loan Losses to
loans outstanding 1.70% 1.93%
DEPOSITS
</TABLE>
At June 30, 1998, total deposits increased by $7,533,725 or 13.23% from December
31, 1997. Expressed in percentages, non-interest bearing deposits increased
10.21% and interest bearing deposits increased 13.59%.
Balances within the major deposit categories as of June 30, 1998 and December
31, 1997 are as follows:
<TABLE>
<S> <C>
June 30, December 31,
1998 1997
-------------------- ---------------------
Non-interest bearing demand deposits $ 6,682,674 $ 6,063,801
Interest bearing demand deposits 10,109,859 11,263,207
Savings deposits 18,227,228 15,029,295
Certificates of deposit 29,457,052 24,586,785
-------------------- --------------------
$ 64,476,813 $ 56,943,088
==================== ====================
</TABLE>
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 borrowed funds ratio which was at 71.33% at June 30, 1998 and
72.02% at December 31, 1997.
Securities available-for-sale which totaled $8,628,199 at June 30, 1998, serve
as a ready source of liquidity. The Company also has lines of credit available
with correspondent banks to purchase federal funds for periods from one to seven
days. At June 30, 1998, unused lines of credit totaled $2,500,00.
11
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COMMUNITYCORP
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS -- continued
CAPITAL RESOURCES
Total shareholders' equity increased from $7,233,560 at December 31, 1997 to
$7,618,785 at June 30, 1998. The increase of $385,225 is primarily attributable
to earnings for the period of $473,600 with dividends paid out of $92,509. An
increase of $3,134 in the fair value of securities available-for-sale resulted
in an increase to total equity. The sale of $1,000 of treasury stock increased
total equity.
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 I capital (essentially common shareholders' equity less intangible
assets) and Tier II 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 I capital to
risk-weighted assets must be at least 4.0% and the ratio of total capital (Tier
I 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 I
capital to adjusted quarterly average total assets of 3.0%.
The following table summarizes the Company's risk-based capital at June 30,
1998:
<TABLE>
<S> <C>
Shareholders' equity $ 7,582,220
Less: intangibles 24,552
--------------------
Tier I capital 7,557,668
Plus: allowance for loan losses (1) 638,559
--------------------
Total capital $ 8,196,227
====================
Risk-weighted assets $ 51,084,716
====================
Risk based capital ratios
Tier I 14.79%
Total capital 16.04%
Leverage ratio 11.03%
(1) limited to 1.25% of risk-weighted assets
</TABLE>
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.
12
<PAGE>
COMMUNITYCORP
PART II - OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
On April 21, 1998, the Company held its Annual Meeting of Shareholders for the
purpose of (a) electing four directors for three-year terms, and (b) ratifying
the appointment of Tourville, Simpson & Henderson, certified public accountants,
as the Company's independent auditors for the fiscal year ending December 31,
1998.
The nominees for director received the number of affirmative votes of
shareholders required for such nominee's election in accordance with the Bylaws
of the Company with 210,868 shareholders voting for the nominees out of a total
300,000 outstanding shareholders. There were no abstentions or no votes.
Tourville, Simpson & Henderson also received the requisite number of affirmative
votes required for approval pursuant to the Bylaws of the Company. Of the
300,000 outstanding shareholders of the Company, 210,768 shareholders voted for
their selection as independent auditors. There were 100 abstention votes and
there were no votes against their selection as auditors.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits - None
(b) Reports on Form 8-K - No reports on Form 8-K were filed
during the quarter ended June 30, 1998.
Items 1, 2, 3 and 5 are not applicable.
13
<PAGE>
COMMUNITYCORP
PART II - OTHER INFORMATION
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: ______________________
W. Roger Crook
President & Chief
Executive Officer
Date:_____________ By: _______________________
Gwen P. Bunton
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 2,899,878
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 8,400,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 8,628,199
<INVESTMENTS-CARRYING> 4,495,025
<INVESTMENTS-MARKET> 4,542,529
<LOANS> 46,254,026
<ALLOWANCE> 766,749
<TOTAL-ASSETS> 72,933,011
<DEPOSITS> 64,476,813
<SHORT-TERM> 370,000
<LIABILITIES-OTHER> 467,413
<LONG-TERM> 0
0
0
<COMMON> 1,500,000
<OTHER-SE> 6,118,785
<TOTAL-LIABILITIES-AND-EQUITY> 72,933,011
<INTEREST-LOAN> 2,088,097
<INTEREST-INVEST> 425,342
<INTEREST-OTHER> 163,415
<INTEREST-TOTAL> 2,676,854
<INTEREST-DEPOSIT> 1,216,667
<INTEREST-EXPENSE> 1,226,969
<INTEREST-INCOME-NET> 1,449,885
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<INCOME-PRETAX> 701,140
<INCOME-PRE-EXTRAORDINARY> 701,140
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<NET-INCOME> 473,600
<EPS-PRIMARY> 1.59
<EPS-DILUTED> 1.59
<YIELD-ACTUAL> 4.57
<LOANS-NON> 605,974
<LOANS-PAST> 7,419
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<LOANS-PROBLEM> 920,311
<ALLOWANCE-OPEN> 743,260
<CHARGE-OFFS> 41,759
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<ALLOWANCE-CLOSE> 786,749
<ALLOWANCE-DOMESTIC> 786,749
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
