UNITED STATES
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 September 30, 1995
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 O-18460
COMMUNITY CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
South Carolina 57-0866395
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification No.)
109 Montague Avenue
Greenwood, SC 29646
(Address of principal executive
offices, including zip code)
(803) 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 the number of shares outstanding of each of the issuer's classes
of common stock as of the date of this filing.
1,150,885 shares of common stock, $1.00 par value
1
<PAGE>
COMMUNITY CAPITAL CORPORATION
INDEX
PART I. Financial Information Page No.
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets - September 30, 1995 and
December 31, 1994. .......................................... 3
Condensed Consolidated Statements of Income - Nine months ended
September 30, 1995 and 1994 and Three months ended September 30,
1995 and 1994. .............................................. 4
Condensed Consolidated Statement of Stockholders' Equity. ... 5
Condensed Consolidated Statements of Cash Flows - Nine months
ended September 30, 1995 and 1994. .......................... 6
Notes to Consolidated Financial Statements .................. 7- 8
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations. .............................. 9-13
PART II. Other Information
Item 6. Exhibits and Reports on Form 8-K. ....................... 14
(a) Exhibits. ........................................... 15
(b) Reports on Form 8-K. ................................ 14
2
<PAGE>
COMMUNITY CAPITAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
<S> <C> <C>
ASSETS:
Cash and cash equivalents:
Cash and due from banks $ 2,966,511 $ 3,038,958
Federal funds sold 2,520,000 -
5,486,511 3,038,958
Securities available-for-sale 17,335,703 5,932,413
Securities held-to-maturity (estimated market value
of $3,886,410 and $1,628,054 at September 30, 1995
and December 31, 1994, respectively) 3,884,426 1,684,334
Loans receivable 57,686,278 50,565,083
Less allowance for loan losses (615,829) (580,528)
Loans, net 57,070,449 49,984,555
Premises, furniture & equipment, net 2,711,358 1,738,233
Other real estate owned - 19,457
Other assets 2,780,057 2,673,399
Total assets $ 89,268,504 $ 65,071,349
LIABILITIES AND SHAREHOLDERS' EQUITY:
LIABILITIES:
Deposits:
Non-interest bearing $ 8,874,197 $ 6,967,910
Interest bearing 58,378,981 42,177,891
67,253,178 49,145,801
Federal funds purchased 2,212,000 3,386,000
Advances from Federal Home Loan Bank 6,477,860 5,925,200
Accrued interest and other liabilities 718,524 535,401
Total liabilities 76,661,562 58,992,402
SHAREHOLDERS' EQUITY:
Common stock, $1 par value, 10,000,000 shares
authorized, 1,150,885 and 573,002 shares
issued and outstanding at September 30, 1995
and December 31, 1994, respectively 1,150,885 573,002
Surplus 11,352,438 5,110,618
Unrealized gain (loss) on securities
held-for-sale, net of deferred taxes 20,755 (77,313)
Retained earnings 82,864 472,640
Total shareholders' equity 12,606,942 6,078,947
Total liabilities and shareholders' equity $ 89,268,504 $ 65,071,349
</TABLE>
3
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COMMUNITY CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Interest income:
Loans, including fees $ 3,707,009 $ 2,841,645 $ 1,302,134 $ 997,727
Securities 595,853 216,704 310,915 71,757
Other 84,763 99,256 51,769 30,640
4,387,625 3,157,605 1,664,818 1,100,124
Interest expense:
Deposit accounts 1,688,178 988,452 685,819 337,105
FHLB advances 290,639 220,631 102,400 76,994
Other 72,243 14,316 20,459 6,329
2,051,060 1,223,399 808,678 420,428
Net interest income 2,336,565 1,934,206 856,140 679,696
Provision for loan losses 55,881 4,000 33,508 4,000
Net interest income after
prov. for loan losses 2,280,684 1,930,206 822,632 675,696
Other operating income:
Service charges 290,123 220,713 93,946 66,076
Other income 235,581 216,154 96,002 45,805
525,704 436,867 189,948 111,881
Other operating expenses:
Salaries and benefits 1,061,253 758,531 407,536 279,466
Net occupancy expense 275,642 204,896 106,969 72,097
Other 907,212 675,867 339,768 209,778
2,244,107 1,639,294 854,273 561,341
Income before taxes 562,281 727,779 158,307 226,236
Income tax provision 207,738 258,338 60,693 66,999
Net income $ 354,543 $ 469,441 $ 97,614 $ 159,237
Earnings per share:
Primary .40 .67 .08 .22
Fully diluted .40 .67 .08 .22
WEIGHTED AVERAGE COMMON
SHARES AND EQUIVALENTS
Primary 942,046 767,818 1,215,100 772,527
Fully diluted 942,046 767,818 1,215,100 772,527
</TABLE>
See notes to condensed consolidated financial statements
4
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COMMUNITY CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
for the nine months ended September 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
Unrealized
Gain (loss)
on Securities Total
Common Capital Held-For- Retained Stockholders'
Stock Surplus Sale, net Earnings Equity
<S> <C> <C> <C> <C> <C>
Balance,
December 31, 1994 $ 573,002 $ 5,110,618 $ (77,313) $ 472,640 $ 6,078,947
Proceeds of stock
offering 520,422 5,610,883 6,131,305
Pre-operating
expenses (107,485) (107,485)
Sale of stock
to K-SOP 4,741 51,017 55,758
5% stock dividend 52,720 579,920 (636,834) (4,194)
Change in fair
value for the
period 98,068 98,068
Net income
for the period 354,543 354,543
Balance,
September 30, 1995 $ 1,150,885 $11,352,438 $ 20,755 $ 82,864 $12,606,942
</TABLE>
See notes to condensed consolidated financial statements
5
<PAGE>
COMMUNITY CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
September 30,
1995 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 354,543 $ 469,441
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 225,111 133,008
Provision for loan losses 55,881 4,000
Amortization of organizational costs 29,405 18,170
Amortization less accretion on investments 35,308 33,211
Amortization of deferred loan costs 60,946 42,611
Loss on sale of securities 21,638 39,871
Disbursements for mortgages held-for-sale (1,868,590) (4,520,600)
Proceeds of sales of residential mortgages 1,947,890 4,898,846
Increase in interest receivable (357,446) (43,418)
Increase (decrease) in interest payable 252,457 (13,320)
Decrease in other assets 292,828 1,689
Decrease in other liabilities (69,334) (160,493)
Net cash provided by operating activities 980,637 903,016
CASH FLOWS FROM INVESTING ACTIVITIES:
Net decrease in time deposits in other banks 100,000
Net increase in loans to customers (7,282,021) (2,411,675)
Purchases of securities available-for-sale (13,271,187) (3,259,910)
Sales of securities available-for-sale 986,467 3,727,214
Maturities of securities available-for-sale 1,000,000 37,724
Purchases of investments held-to-maturity (2,323,395) (591,024)
Maturities of investments held-to-maturity 100,000 200,000
Purchases of premises and equipment (954,665) (197,748)
Net cash used by investing activities (21,744,801) (2,395,419)
CASH FLOWS FROM FINANCING ACTIVITIES:
Sale of capital stock 6,187,063 117,838
Stock dividend fractional shares paid in cash (4,194) (1,920)
Repayment of organizational notes (457,189)
Net increase in deposits accounts 18,107,377 3,495,989
Proceeds from FHLB borrowings 5,050,000
Repayments of FHLB borrowings (4,497,340) (491,358)
Net increase (decrease) Fed Funds purchased (1,174,000) (208,000)
Net cash provided by financing activities 23,211,717 2,912,549
NET INCREASE IN CASH AND CASH EQUIVALENTS 2,447,553 1,420,146
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3,038,958 3,026,356
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 5,486,511 $ 4,446,502
Cash paid during the period for:
Income taxes $ 185,641 $ 438,071
Interest 1,798,603 1,236,720
</TABLE>
See notes to condensed consolidated financial statements
6
<PAGE>
COMMUNITY CAPITAL CORPORATION
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
stockholders. The financial statements as of September 30, 1995 and for
the interim periods ended September 30, 1995 and 1994 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, 1994 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 the Company's
1994 Annual Report.
Note 2 - Adoption of Accounting Principle
Effective January 1, 1995, the Company adopted the provisions of Statement
of Financial Accounting Standards No. 114 "Accounting by Creditors for
Impairment of a Loan." FASB 114 requires that impaired loans be measured
based on the present value of expected future cash flows discounted at the
loan's effective interest rate or, as a practical expedient, at the loan's
observable market price or the fair value of the collateral if the loan is
collateral dependent. The Statement also requires that the Company
evaluate the collectibility of both contractual interest and contractual
principal when assessing the need for a loss accrual. Net income and
earnings per share for the interim period reported were not affected by the
adoption of the new accounting principle.
The Company has adopted Statement of Financial Accounting Standards No. 107
"Disclosures about the Fair Value of Financial Instruments." The Statement,
as amended, extends fair value disclosure practices by requiring disclosure
of the fair value of financial instruments, both assets and liabilities,
recognized and not recognized in the statement of financial position, for
which it is practicable to estimate fair value. If estimating fair value
is not practicable, FASB 107 requires disclosure of descriptive information
pertinent to estimating fair value. As permitted by FASB 107, the Company
will not apply the provisions to complete interim financial statements in
the year of adoption.
Note 3 - Stockholders' Equity
Pursuant to a prospectus dated February 27, 1995, the Company, as of
September 30, 1995, issued 520,422 shares of its common stock for
$6,131,305. The issuance of these shares is reflected in the consolidated
statement of stockholders' equity, net of issuance costs of $113,761.
On June 22, 1995, the Company acquired all of the common stock of Clemson
Bank & Trust (the "Clemson Bank") for $4,500,000. Immediately upon being
chartered as a state bank on June 22, 1995, the Clemson Bank assumed
ownership of its organizational partnership's assets and liabilities.
7
<PAGE>
COMMUNITY CAPITAL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note 3 - Stockholders' Equity -- continued
Following is a summary of the assets acquired and liabilities assumed:
Premises and equipment $ 243,571
Organizational costs 68,303
Other, net 37,830
Notes payable (457,189)
Pre-operating expenses incurred $ (107,485)
The pre-operating expenses of $107,485 incurred by the organizational
partnership through the date the Clemson Bank commenced operations were
charged directly to retained earnings and are not reflected in the
accompanying consolidated statement of income. Organizational costs
incurred for attorney's fees, consultants and filing fees in the amount of
$68,303 were capitalized and are being amortized over a five-year period.
These costs are included in the accompanying consolidated balance sheet.
On June 19, 1995 the Board of Directors declared a 5% stock dividend.
Accordingly, amounts equal to the fair market value of the additional
shares issued have been charged to retained earnings and credited to common
stock and capital surplus. Earnings per share and weighted average shares
outstanding have been restated to reflect the 5% stock dividend.
8
<PAGE>
COMMUNITY CAPITAL CORPORATION
Item 2. Management's Discussion and Analysis of Financial Condition
The following is a discussion of the Company's financial condition as of
September 30, 1995 compared to December 31, 1994, and the results of
operations for the three and nine months ended September 30, 1995 compared
to the three and nine months ended September 30, 1994. These results
reflect the net results of the Clemson Bank which commenced business on
June 22, 1995. 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 nine months ended September 30, 1995, net interest income increased
$402,359 or 20.8% over the nine months ended September 30, 1994, while net
interest margin realized on earning assets increased to approximately
4.31%. This is a decrease of 39 basis points, compared to the nine months
ended September 30, 1994.
Net interest income for the quarter ended September 30, 1995 increased
$176,444, or 25.96% over the third quarter of 1994. The net interest margin
realized on earning assets was approximately 4.34%, a 23 basis point
decrease compared to the same period in 1994.
The increase in net interest income for both periods being presented is
primarily attributable to the significant increase in earnings assets
offset partially by higher rates paid on interest bearing liabilities. The
higher volume resulted primarily from the opening of a new branch during
February of 1995, trust activities which began in January 1995, the opening
of the Clemson Bank in June 1995, and the implementation of a competitive
pricing program for certificates of deposit. A higher overall interest
rate environment during the third quarter of 1995 and for the nine months
ended September 30, 1995, when compared to the corresponding periods for
1994, resulted in increased yields on all categories of earning assets and
interest bearing liabilities. The interest rate spread decreased
approximately 96 and 128 basis points to 3.40% and 3.19% for the nine
months and quarter ended September 30, 1995, respectively.
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 nine months and the quarter ended
September 30, 1995, the provision was $55,881 and $33,508, respectively, an
increase of $51,881 and $29,508 over the comparable 1994 periods,
respectively. Based on present information, management believes the
allowance for loan losses at September 30, 1995 is adequate to meet
presently known and inherent risks in the loan portfolio.
Non-Interest Income
Total non-interest income for the nine months ended September 30, 1995 was
$525,704, an increase of $88,837, or 20.34, from the comparable period in
1994. The increase is primarily due to a $69,410, or 31.45% increase in
service charges collected on deposit accounts.
9
<PAGE>
COMMUNITY CAPITAL CORPORATION
Non-Interest Income - continued
Total non-interest income was $189,948 for the quarter ended September 30,
1995, compared to $111,881 for the quarter ended September 30, 1994. The
increase is due primarily to the increase in service charges collected on
deposit accounts and fees generated from the sale of residential mortgages.
Non-Interest Expense
Total non-interest expense for the nine months ended September 30, 1995 was
$2,244,107, or 36.89% higher than the nine months ended September 30, 1994.
For the quarter ended September 30, 1995 non-interest expense was 52.18% or
$292,932 higher than the non-interest expense of $561,341 for the quarter
ended September 30, 1994. The increase for both periods is due primarily to
the opening of a new branch, a new trust department and the Clemson Bank.
These items had a significant effect on all of the various categories of
non-interest expense for the periods being presented.
For the nine months and quarter ended September 30, 1995, salaries and
benefits increased by $302,722 and $128,070, an increase of 39.91% and
45.83%, respectively, over the comparable 1994 periods. Net occupancy costs
for the nine months ended September 30, 1995 increased $70,746 primarily as
a result of depreciation charges for the computer upgrades placed in
service during the first quarter of 1995. Other non-interest expense was
$907,212 for the nine months ended September 30, 1995, compared to $675,867
for the nine months ended September 30, 1994, an increase of $231,345 or
34.23%. For the quarter ended September 30, 1995 other non-interest
expense was $339,768 compared to $209,778 for the quarter ended September
30, 1994, an increase of $129,990 or 61.97%.
Income Taxes
For all periods presented the effective income tax rate was approximately
37%. The income tax provision for the nine months and the quarter ended
September 30, 1995 was $207,738 and $60,693, compared to $258,338 and
$66,999 for the comparable 1994 periods, respectively.
Net Income
The combination of the above factors resulted in net income for the nine
months ended September 30, 1995 of $354,543 as compared to $469,441 for the
comparable period in 1994, a decrease of $114,898 or a decline of 24.48%.
For the quarter ended September 30, 1995, net income was $97,614 as
compared to $159,237 for the comparable period in 1994, a decline of
$61,623 or 38.70%.
The net income for the 1995 periods were negatively affected by the Clemson
Bank's net loss of $102,151 for the period beginning June 22, 1995 and
ending September 30, 1995.
Assets and Liabilities
During the first nine months of 1995, total assets grew $24,197,155, or
37.19% when compared to December 31, 1994. Total asset growth was
substantially funded by net proceeds of $6,131,305 received as a
result of the Company's stock offering, approximately $2,500,000 in
10
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COMMUNITY CAPITAL CORPORATION
Assets and Liabilities - continued
deposits generated by the new branch, and approximately $2,200,000 in
deposits resulting from trust activities of the newly formed trust
department. Also, approximately $7,000,000 in deposits were obtained as a
result of a new competitive pricing policy for deposits combined with
gaining customers who have switched their deposits from "Super Regional
Banks."
Investment Securities
Investment securities increased $13,603,382 during the period with the
growth primarily in securities classified as securities available-for-sale.
Loans
Demand for quality loans remained stable in the Greenwood marketplace. Net
loans increased $7,085,894 or 14.2% during the period. Approximately
$4,000,000 of the increase is attributable to the new Clemson Bank.
Balances within the major loan receivable categories as of September 30,
1995 and December 31, 1994 are as follows:
September 30, December 31,
1995 1994
Commercial and agricultural $ 12,341,522 $ 12,231,392
Real estate 35,244,092 29,386,734
Home equity 5,609,591 4,795,981
Consumer, installment 3,453,373 2,974,407
Consumer, credit card and checking 767,928 978,689
Residential mortgages held for sale 60,800 136,800
Other, net 208,972 61,080
$ 57,686,278 $ 50,565,083
Risk Elements in the Loan Portfolio
The following is a summary of risk elements in the loan portfolio:
September 30,
1995 1994
Loans:
Nonaccrual loans $ 8,881 $ 21,285
Accruing loans more than 90
days past due $ 22,000 $ 17,811
Loans identified by the internal
review mechanism:
Criticized $ 1,047,980 $ 1,569,679
Classified $ 1,932,211 $ 1,876,849
11
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COMMUNITY CAPITAL CORPORATION
<TABLE>
<CAPTION>
1995 1994
<S> <C> <C>
Balance, January 1, $ 580,528 $ 566,810
Provision for loan losses for the period 55,881 4,000
Net loans (charged off) recovered for
the period (20,580) (864)
Balance, end of period $ 615,829 $ 569,946
Gross loans outstanding, end of period $ 57,686,278 $ 46,624,094
Allowance for loan losses to loans
outstanding 1.07% 1.22%
</TABLE>
Premises and Equipment
The newly opened branch, Clemson Bank and the upgrade to the computer
system were the principal contributors to the $973,123 increase in premises
and equipment.
Deposits
Total deposits increased $18,107,377 or 36.8% from December 31, 1994.
Expressed in percentages, non-interest bearing deposits increased 27.4% and
interest bearing deposits increased 38.4%.
Balances within the major deposit categories as of September 30, 1995 and
December 31, 1994 are as follows:
September 30, December 31,
1995 1994
Non-interest bearing demand deposits $ 8,874,197 $ 6,967,910
Interest bearing demand deposits 17,376,453 11,973,014
Savings deposits 6,987,031 6,817,919
Certificates of deposit 34,015,497 23,386,958
$67,253,178 $49,145,801
Liquidity
Increased deposits and FHLB advances improved the Company's liquidity, as
measured by the loan-to-total-borrowings ratio, which was 75.95% at
September 30, 1995 and 86.5% at December 31, 1994. The Company continues
to borrow under its arrangement with the Federal Home Loan Bank (FHLB) of
Atlanta. At September 30, 1995 advances from the FHLB were $6,477,860. At
December 31, 1994, FHLB advances totaled $5,925,200. Management intends to
fully pursue this source of funding. Generally, management matches
specific FHLB borrowing products with specific loan types. Additionally,
the Company decreased its purchases of federal funds by $1,174,000 since
December 31, 1994. The parent company has an unused $1,000,000 line of
credit as of September 30, 1995.
12
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COMMUNITY CAPITAL CORPORATION
Capital Resources
Total stockholders' equity increased $6,527,995 to $12,606,942 since
December 31, 1994. The increase is due primarily to the issuance of
520,422 shares of common stock, pursuant to a prospectus dated February 27,
1995. The net proceeds from the issuance of these shares was $6,131,305.
$4,500,000 of the stock proceeds were used to capitalize the Clemson Bank
on June 22, 1995. The remainder of the proceeds will be used for other
general corporate purposes aimed primarily at the expansion of the
Company's business.
Bank holding companies, such as the Company, and their bank subsidiaries
are required by banking regulators to meet certain minimum levels of
capital adequacy. These are expressed in the form of certain ratios.
Capital is separated into Tier I capital (essentially common stockholders'
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
September 30, 1995:
Risk-based capital ratios
Tier I 20.04%
Total capital 21.02%
Leverage ratio 14.70%
The above risk-based capital ratios were significantly impacted by the
issuance of the common stock mentioned above and the formation of the
Clemson Bank on June 22, 1995.
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.
13
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COMMUNITY CAPITAL CORPORATION
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
I. Earnings per share computations
(b) Reports on Form 8-K
During the quarter ended September 30, 1995 the Company filed one report on
Form 8-K. The report dated June 23, 1995 and filed on July 1, 1995
reported that "On June 22, 1995, in order to provide the initial
capitalization of Clemson Bank & Trust, a South Carolina state bank
(formerly in organization) in Clemson, South Carolina (the "Bank"), the
Registrant acquired 900,000 shares (the "Shares") of the Bank's common
stock, which Shares constitute all of the issued and outstanding shares of
capital stock of the Bank. The Registrant paid cash of $4,500,000 as total
consideration for the Shares, which amount was determined by authorities of
the South Carolina State Board of Financial Institutions as the amount of
initial capitalization of the Bank necessary to satisfy South Carolina
banking laws and other applicable regulatory requirements. Funds used to
acquire the Shares were obtained from the proceeds of the Registrant's
ongoing public offering of its common stock. The acquisition of the Shares
was carried out pursuant to the terms of a Conditional Subscription
Agreement between the Registrant and the Bank and under the terms of a Bank
Development Agreement by and among the Registrant, the organizers of the
Bank and Greenwood Bank & Trust."
Items 1 through 5 are not applicable.
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.
COMMUNITY CAPITAL CORPORATION
By:
William G. Stevens
President & Chief Executive Officer
Date: November 13, 1995 By:
James H. Stark
Chief Financial Officer
14
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EXHIBIT I
COMMUNITY CAPITAL CORPORATION
EARNINGS PER SHARE
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
Primary and Fully Diluted September 30, September 30,
Earnings Per Share 1995 1994(1) 1995 1994(1)
<S> <C> <C> <C> <C>
Net income $354,543 $469,441 $ 97,614 $159,237
Add: Interest revenue
from assumed purchase
of government securities,
net of tax 25,941 41,456 1,040 13,701
Adjusted net income for
fully diluted shares $380,484 $510,897 $ 98,654 $172,938
Weighted average number
of common shares
outstanding 801,715 592,327 1,143,033 598,213
Dilutive stock
equivalents 140,331 175,491 72,067 174,314
Total stock and
equivalents 942,046 767,818 1,215,100 772,527
Earnings per share of
common and equivalent
share $ .40 $ .67 $ .08 $ .22
(1) Restated for the effect of the 5% stock dividend in June of 1995.
(2) Computed using the Treasury Stock Aggregate Method modified for the 20%
limitation.
</TABLE>
15
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the more
detailed financial statements of the Company and subsidiary and notes thereto
included elsewhere in this report and is qualified in its entirety by
reference to such financials.
</LEGEND>
<CIK>0000832847
<NAME> COMMUNITY CAPITAL CORPORATION
<S> <C>
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<PERIOD-END> SEP-30-1995
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0
0
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</TABLE>
