U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
--- OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 2000
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 par value
PAGE 1 OF 17
EXHIBIT INDEX ON PAGE 2
<PAGE>
COMMUNITYCORP
Index
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION Page No.
-----------------------------
<S> <C> <C>
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets -- June 30, 2000 and December 31, 1999.....................................3
Condensed Consolidated Statements of Income --
Six months ended June 30, 2000 and 1999 and Three months ended June 30, 2000 and 1999..........................4
Condensed Consolidated Statements of Shareholders' Equity and Comprehensive Income --
Six months ended June 30, 2000...................................................................................5
Condensed Consolidated Statements of Cash Flows -- Six months ended June 30, 2000 and 1999.......................6
Notes to Condensed Consolidated Financial Statements.............................................................7-8
Review by Independent Certified Public Accountants........................................................................9
Report on Review by Independent Certified Public Accountants.............................................................10
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations............................11-14
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders..............................................................15
Item 6. Exhibits and Reports on Form 8-K.................................................................................15
(a) Exhibits....................................................................................................15
(b) Reports on Form 8-K.........................................................................................15
</TABLE>
<PAGE>
COMMUNITYCORP
Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
June 30, December 31,
2000 1999
------------ ------------
(Unaudited)
<S> <C> <C>
Assets:
Cash and cash equivalents:
Cash and due from banks $ 3,451,754 $ 5,723,770
Federal funds sold and securities purchased under agreements to resell -- 4,670,000
------------ ------------
3,451,754 10,393,770
------------ ------------
Securities available-for-sale 19,110,907 18,759,768
Securities held-to-maturity (estimated market value of $4,962,084 and
$5,210,028 at June 30, 2000 and December 31, 1999, respectively) 5,098,325 5,327,129
------------ ------------
24,209,232 24,086,897
------------ ------------
Loans receivable 64,662,286 59,663,015
Less allowance for loan losses (1,142,039) (1,086,980)
------------ ------------
Loans, net 63,520,247 58,576,035
Accrued interest receivable 1,038,092 1,004,529
Premises, furniture & equipment, net 1,714,593 1,776,320
Other assets 1,113,203 857,710
------------ ------------
Total assets $ 95,047,121 $ 96,695,261
============ ============
Liabilities and Shareholders' Equity:
Liabilities:
Deposits:
Noninterest bearing $ 8,321,589 $ 9,952,976
Interest bearing 74,174,565 76,982,395
------------ ------------
82,496,154 86,935,371
Short-term borrowings 2,890,000 290,000
Accrued interest payable 560,562 509,943
Other liabilities 111,626 155,208
------------ ------------
Total liabilities 86,058,342 87,890,522
------------ ------------
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) (370,651) (295,119)
Retained earnings 6,819,333 6,186,081
Treasury stock (16,303 shares in 2000 and 7,999 shares in 1999) (691,611) (317,931)
------------ ------------
Total shareholders' equity 8,988,779 8,804,739
------------ ------------
Total liabilities and shareholders' equity $ 95,047,121 $ 96,695,261
============ ============
</TABLE>
See notes to condensed consolidated financial statements
3
<PAGE>
COMMUNITYCORP
Condensed Consolidated Statements of Income
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended June 30, Three Months Ended June 30,
------------------------- ---------------------------
2000 1999 2000 1999
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Interest income:
Loans, including fees $2,886,327 $2,523,554 $1,475,666 $1,284,329
Securities 712,716 482,252 354,439 261,686
Other interest income 89,680 338,403 23,039 159,693
---------- ---------- ---------- ----------
Total 3,688,723 3,344,209 1,853,144 1,705,708
---------- ---------- ---------- ----------
Interest expense:
Deposit accounts 1,653,450 1,556,500 830,752 776,776
Other interest expense 19,404 10,731 16,484 5,865
---------- ---------- ---------- ----------
1,672,854 1,567,231 847,236 782,641
---------- ---------- ---------- ----------
Net interest income 2,015,869 1,776,978 1,005,908 923,067
Provision for loan losses 155,000 180,000 80,000 85,000
---------- ---------- ---------- ----------
Net interest income after provision for loan losses 1,860,869 1,596,978 925,908 838,067
---------- ---------- ---------- ----------
Other operating income:
Service charges 212,208 197,539 111,675 105,167
Other income 46,348 40,464 22,291 15,941
---------- ---------- ---------- ----------
Total 258,556 238,003 133,966 121,108
---------- ---------- ---------- ----------
Other operating expenses:
Salaries and benefits 469,301 429,570 247,178 218,776
Net occupancy expense 66,927 60,345 30,476 33,369
Equipment expense 126,609 119,136 66,300 61,435
Other operating expenses 312,056 277,610 164,291 147,815
---------- ---------- ---------- ----------
Total 974,893 886,661 508,245 461,395
---------- ---------- ---------- ----------
Income before taxes 1,144,532 948,320 551,629 497,780
Income tax provision 369,683 317,444 183,000 169,386
---------- ---------- ---------- ----------
Net income $ 774,849 $ 630,876 $ 368,629 $ 328,394
========== ========== ========== ==========
Earnings per share:
Weighted average common shares outstanding 283,971 298,457 283,681 298,457
========== ========== ========== ==========
Net income per common share $ 2.73 $ 2.11 $ 1.30 $ 1.10
========== ========== ========== ==========
</TABLE>
See notes to condensed consolidated financial statements
4
<PAGE>
COMMUNITYCORP
Condensed Consolidated Statement of Shareholders' Equity and
Comprehensive Income for the six months ended June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Accumulated
Common Stock Other
---------------------- Capital Comprehensive Retained Treasury
Shares Amount Surplus Income Earning Stock Total
------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance,
December 31, 1999 300,000 $ 1,500,000 $ 1,731,708 $ (295,119) $ 6,186,081 $ (317,931) $ 8,804,739
Cash dividends declared
-$.50 per share (141,597) (141,597)
Net income for the
period 774,849 774,849
Other comprehensive
income, net of taxes (75,532) (75,532)
-----------
Comprehensive income 699,317
-----------
Purchase of
Treasury Stock (373,680) (373,680)
------- ----------- ----------- --------- ----------- ----------- -----------
Balance,
June 30, 2000 300,000 $ 1,500,000 $ 1,731,708 $(370,651) $ 6,819,333 $ (691,611) $ 8,988,779
======= =========== =========== ========= =========== =========== ===========
</TABLE>
See notes to condensed consolidated financial statements
5
<PAGE>
COMMUNITYCORP
Condensed Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended June 30,
----------------------------
2000 1999
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 774,849 $ 630,876
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 90,214 91,315
Provision for possible loan losses 155,000 180,000
Amortization less accretion on investments 10,352 261
Amortization of deferred loan costs 38,703 37,860
Gain on sale of premises and equipment -- (18,500)
(Increase) decrease in interest receivable (33,563) (91,143)
Increase (decrease) in interest payable 50,619 (19,796)
(Increase) decrease in other assets (45,709) 17,249
Increase (decrease) in other liabilities (43,582) 55,743
------------ ------------
Net cash provided by operating activities 996,883 883,865
------------ ------------
Cash flows from investing activities:
Net increase in loans to customers (5,307,915) (3,288,117)
Purchases of securities available-for-sale (800,000) (8,408,787)
Maturities of securities available-for-sale 327,502 1,725,998
Purchases of securities held-to-maturity -- (725,000)
Maturities of securities held-to-maturity 224,495 847,608
Proceeds from disposal of premises and equipment -- 18,500
Purchases of premises and equipment (28,487) (31,983)
------------ ------------
Net cash used by investing activities (5,584,405) (9,861,781)
------------ ------------
Cash flows from financing activities:
Net increase(decrease) in deposits accounts (4,439,217) 2,976,213
Increase in short-term borrowings 2,600,000 400,000
Dividends paid (141,597) (119,383)
Purchase of treasury stock (373,680) --
------------ ------------
Net cash provided (used) by financing activities (2,354,494) 3,256,830
------------ ------------
Net decrease in cash and cash equivalents (6,942,016) (5,721,086)
Cash and cash equivalents, beginning of period 10,393,770 19,474,460
------------ ------------
Cash and cash equivalents, end of period $ 3,451,754 $ 13,753,374
============ ============
Cash paid during the period for:
Income taxes $ 245,000 $ 313,200
Interest $ 1,622,235 $ 1,587,027
</TABLE>
See notes to condensed consolidated financial statements
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, 2000 and for the interim periods ended June
30, 2000 and 1999 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, 1999 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 1999 Annual Report.
Note 2 - Comprehensive Income
The components of other comprehensive income and related tax effects are as
follows:
<TABLE>
<CAPTION>
Pre-tax (Expense) Net-of-tax
Amount Benefit Amount
--------- --------- ---------
<S> <C> <C> <C>
For the Six Months Ended June 30, 2000:
Unrealized gains (losses) on securities available-for-sale $(115,316) $ 39,784 $ (75,532)
Plus: reclassification adjustment for
gains (losses) realized in net income -- -- --
--------- --------- ---------
Net unrealized gains (losses) $(115,316) $ 39,784 $ (75,532)
========= ========= =========
Pre-tax (Expense) Net-of-tax
Amount Benefit Amount
--------- --------- ---------
For the Six Months Ended June 30, 1999:
Unrealized gains (losses) on securities available-for-sale $(369,233) $ 126,937 $(242,296)
Plus: reclassification adjustment for
gains (losses) realized in net income -- -- --
--------- --------- ---------
Net unrealized gains (losses) $(369,233) $ 126,937 $(242,296)
========= ========= =========
</TABLE>
7
<PAGE>
COMMUNITYCORP
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 2 - Comprehensive Income -- continued
<TABLE>
<CAPTION>
Pre-tax (Expense) Net-of-tax
Amount Benefit Amount
--------- --------- ---------
<S> <C> <C> <C>
For the Three Months Ended June 30, 2000:
Unrealized gains (losses) on securities available-for-sale $ 39,591 $ (13,659) $ 25,932
Plus: reclassification adjustment for
gains (losses) realized in net income -- -- --
--------- --------- ---------
Net unrealized gains (losses) $ 39,591 $ (13,659) $ 25,932
========= ========= =========
Pre-tax (Expense) Net-of-tax
Amount Benefit Amount
--------- --------- ---------
For the Three Months Ended June 30, 1999:
Unrealized gains (losses) on securities available-for-sale $(273,368) $ 94,312 $(179,056)
Plus: reclassification adjustment for
gains (losses) realized in net income -- -- --
--------- --------- ---------
Net unrealized gains (losses) $(273,368) $ 94,312 $(179,056)
========= ========= =========
</TABLE>
Accumulated other comprehensive income consists solely of the unrealized gain on
securities available for sale, net of the deferred tax effects.
8
<PAGE>
COMMUNITYCORP
Review by Independent Certified Public Accountants
Tourville, Simpson and Caskey, L.L.P., the Company's independent certified
public accountants, have made a limited review of the financial data as of June
30, 2000, and for the three and six month periods ended June 30, 2000 and 1999
presented in this document, in accordance with standards established by the
American Institute of Certified Public Accountants.
Their report furnished pursuant to Article 10 of Regulation S-X is included
herein.
9
<PAGE>
COMMUNITYCORP
Report on Review by Independent Certified Public Accountants
The Board of Directors
Communitycorp
Walterboro, South Carolina
We have reviewed the accompanying condensed consolidated balance sheet of
Communitycorp and subsidiary (the Company) as of June 30, 2000, the related
condensed consolidated statements of income for the three and six month periods
ended June 30, 2000 and 1999, the related condensed consolidated statement of
changes in shareholders' equity and comprehensive income for the six month
period ended June 30, 2000, and the related condensed consolidated statements of
cash flows for the six month periods ended June 30, 2000 and 1999. These
financial statements are the responsibility of the Company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the condensed consolidated financial statements referred to above for
them to be in conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet as of December 31, 1999, and the
related consolidated statements of income, changes in shareholders' equity and
comprehensive income, and cash flows for the year then ended (not presented
herein); and, in our report dated March 1, 2000, we expressed an unqualified
opinion on those consolidated financial statements. In our opinion, the
information set forth in the accompanying condensed consolidated balance sheet
as of December 31, 1999, is fairly stated, in all material respects, in relation
to the consolidated balance sheet from which it has been derived.
TOURVILLE, SIMPSON AND CASKEY, L.L.P.
Columbia, South Carolina
August 2, 2000
10
<PAGE>
COMMUNITYCORP
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, 2000 compared to December 31, 1999, and the results of operations for the
three and six months ended June 30, 2000 compared to the three and six months
ended June 30, 1999. 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, 2000, net interest income increased $238,891
or 13.44% over the same period in 1999. The net interest margin realized on
earning assets increased from 4.17% for the six months ended June 30, 1999 to
4.53% for the same period in 2000. The interest rate spread increased by 34
basis points from 3.57% at June 30, 1999 to 3.91% at June 30, 2000.
Net interest income increased from $923,067 for the quarter ending June 30, 1999
to $1,005,908 for the quarter ending June 30, 2000. This represents an increase
of $82,841 or 8.97%. The net interest margin realized on earning assets
increased from 4.24% for the quarter ended June 30, 1999 to 4.53% for the
quarter ended June 30, 2000. The interest rate spread also increased by 26 basis
points from 3.63% at June 30, 1999 to 3.89% at June 30, 2000.
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, 2000, the provision
charged to expense was $155,000. This was $25,000 less than for the comparable
period in 1999. Based on present information, management believes the allowance
for loan losses is adequate at June 30, 2000 to meet presently known and
inherent risks in the loan portfolio. The allowance for loan losses is 1.77% of
total loans at June 30, 2000, as compared to 1.81% at June 30, 1999.
Noninterest Income
Noninterest income during the six months ended June 30, 2000 was $258,556, an
increase of $20,553 or 8.64% from the comparable period in 1999. The increase is
primarily a result of an increase in service charges from $197,539 at June 30,
1999 to $212,208 at June 30, 2000. Other income also increased $5,884, or 14.54%
to $46,348 for the six months ended June 30, 2000.
For the quarter ended June 30, 2000, noninterest income increased $12,858 or
10.62% over the same period in 1999. This increase is primarily due to other
income, which increased 39.83% from the quarter ended June 30, 1999 to the
quarter ended June 30, 2000. Service charges also increased $6,508, or 6.19%, to
$111,675 for the quarter ended June 30, 2000.
Noninterest Expense
Total noninterest expense for the six months ended June 30, 2000 was $974,893 or
9.95% higher than the six months ended June 30, 1999. Salaries and employee
benefits increased from $429,570 for the six months ended June 30, 1999 to
$469,301 for the six months ended June 30, 2000. This increase is primarily
attributable to annual pay raises. Other operating expenses increased $34,446 or
12.41% to $312,056 for the six months ended June 30, 2000 when compared to the
same period in 1999.
For the quarter ended June 30, 2000, noninterest expense increased $46,850 or
10.15% over the same period in 1999. The largest increase between the quarter
ended June 30, 2000 and the quarter ended June 30, 1999 was in salaries and
benefits, which increased $28,402 or 12.98%. Other operating expenses also
increased from $147,815 for the six months ended June 30, 1999 to $164,291 for
the six months ended June 30, 2000.
Income Taxes
The income tax provision for the six months ended June 30, 2000 was $369,683 as
compared to $317,444 for the same period in 1999. This increase was primarily as
a result of an increase in income before taxes. The effective tax rates were
32.30% and 33.47% for the six months ended June 30, 2000 and June 30, 1999,
respectively. The effective tax rates were 33.17% and 34.03% for the quarter
ended June 30, 2000 and June 30, 1999, respectively.
11
<PAGE>
COMMUNITYCORP
Item 2. Management's Discussion And Analysis Of Financial Condition -- continued
Net Income
The combination of the above factors resulted in net income for the six months
ended June 30, 2000 of $774,849 as compared to $630,876 for the same period in
1999. This represents an increase of $143,973 or 22.82% over the same period in
1999. Net income for the quarter ended June 30, 2000 was $40,235, or 12.25%
higher than for the same period in 1999.
Assets and Liabilities
During the first six months of 2000, total assets decreased $1,648,140 or 1.70%
when compared to December 31, 1999. Cash and cash equivalents decreased
$6,942,016 from December 31, 1999 primarily because of the reduction in federal
funds sold and repurchase agreements of $4,670,000. The decrease in federal
funds and repurchase agreements was offset by the growth of the loan portfolio,
which increased by 8.38% or $4,999,271 to $64,662,286 at June 30, 2000 from
$59,663,015 at December 31, 1999. Deposits also decreased by 5.11% or $4,439,217
from December 31, 1999 to $82,496,154. The primary reason for the decrease in
deposits was due to the loss of municipal funds temporarily invested in
interest-bearing accounts at the Bank.
Loans
The demand for loans continued to increase in the Walterboro marketplace during
the first six months of 2000. Gross loans increased $4,999,271 or 8.38% during
the period. Balances within the major loans receivable categories as of June 30,
2000 and December 31, 1999 are as follows:
June 30, December 31,
2000 1999
----------- -----------
Commercial and industrial $42,903,646 $40,503,621
Real estate 7,855,637 6,948,643
Consumer 13,430,727 10,946,282
Agricultural 143,804 152,013
Other, net 328,472 1,112,456
----------- -----------
$64,662,286 $59,663,015
=========== ===========
Risk Elements in the Loan Portfolio
The following is a summary of risk elements in the loan portfolio:
June 30,
----------------------
2000 1999
---------- ---------
Loans: Nonaccrual loans $1,122,207 $ 763,682
Accruing loans more than 90 days past due $ 1,000 $ 4,000
Loans identified by the internal review mechanism:
Criticized $ 170,721 $ 174,172
Classified $ 906,179 $ 836,221
12
<PAGE>
COMMUNITYCORP
Item 2. Management's Discussion And Analysis Of Financial Condition -- continued
Risk Elements in the Loan Portfolio -- continued
Activity in the Allowance for Loan Losses is as follows:
June 30,
----------------------------
2000 1999
------------ ------------
Balance, January 1, $ 1,086,980 $ 929,482
Provision for loan losses for the period 155,000 180,000
Net loans (charged off) recovered for the period (99,941) (115,370)
------------ ------------
Balance, end of period $ 1,142,039 $ 994,112
============ ============
Gross loans outstanding, end of period $ 64,662,286 $ 55,014,541
Allowance for loan losses to loans outstanding 1.77% 1.81%
Deposits
Total deposits decreased $4,439,217 or 5.11% from December 31, 1999. The largest
change was a decrease in interest-bearing deposits. Interest-bearing deposits
decreased $3,067,117 to $13,167,017 at June 30, 2000. This was attributable to
the loss of approximately $3,000,000 in municipal funds. Expressed in
percentages, noninterest-bearing deposits decreased 16.39% and interest-bearing
deposits decreased 3.65%.
Balances within the major deposit categories as of June 30, 2000 and December
31, 1999 are as follows:
June 30, December 31,
2000 1999
------------ ------------
Noninterest-bearing demand deposits $ 8,321,589 $ 9,952,976
Interest-bearing demand deposits 13,167,017 16,234,134
Savings deposits 20,970,741 19,238,515
Certificates of deposit 40,036,807 41,509,746
------------ -----------
$ 82,496,154 $86,935,371
============ ===========
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 75.73% at June 30, 2000 and 68.40% at
December 31, 1999.
Securities available-for-sale, which totaled $19,110,907 at June 30, 2000,
serves as a ready source of liquidity. The Company also has lines of credit
available with correspondent banks to purchase federal funds. At June 30, 2000,
unused lines of credit totaled $2,500,000.
Capital Resources
Total shareholders' equity increased from $8,804,739 at December 31, 1999 to
$8,988,779 at June 30, 2000. The increase of $184,040 is attributable to
earnings for the period of $774,849 before the payment of $141,597 in dividends.
Equity was negatively affected by the change in fair value of securities
available-for-sale of $75,532, and the purchase of treasury stock of $373,680.
13
<PAGE>
COMMUNITYCORP
Item 2. Management's Discussion And Analysis Of Financial Condition -- continued
Capital Resources -- continued
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%.
The following table summarizes the Company's risk-based capital at June 30,
2000:
Shareholders' equity $ 9,359,430
Less: intangibles 2,316
-----------
Tier 1 capital 9,357,114
Plus: allowance for loan losses (1) 879,193
-----------
Total capital $10,236,307
===========
Risk-weighted assets $70,072,629
===========
Risk based capital ratios
Tier 1 capital (to risk-weighted assets) 13.30%
Total capital (to risk-weighted assets) 14.55%
Tier 1 capital (to total average assets) 9.81%
(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.
14
<PAGE>
COMMUNITYCORP
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
On April 18, 2000, the Company held its Annual Meeting of Shareholders for the
purpose of (a) electing three directors for three-year terms, and (b) ratifying
the appointment of Tourville, Simpson and Caskey, L.L.P., as the Company's
independent auditors for the fiscal year ending December 31, 2000.
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 198,151 shareholders voting for the nominees out of a total
300,000 outstanding shareholders. There were no abstention votes.
Tourville, Simpson and Caskey, L.L.P. 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, 198,151 shareholders
voted for their selection as independent auditors. There were no abstention or
no votes against their selection as auditors.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27. Financial Data Schedule
(b) Reports on Form 8-K - No reports on Form 8-K were filed during the
quarter ended June 30, 2000.
Items 1, 2, 3, and 5 are not applicable.
15
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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
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W. Roger Crook
President & Chief Executive Officer
Date: August 8, 2000 By: /s/ GWEN P. BUNTON
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Gwen P. Bunton
Chief Financial Officer
