United States
Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Period Ended March 31, 1996
Commission File Number: 0-24476
South Carolina Community Bancshares, Inc.
(exact name of registrant as specified in its charter)
Delaware 22-0999615
(State of Incorporation) (I.R.S. Employer
Identification Number)
100 S. Congress St., Winnsboro, SC 29180
(address of principal executive offices) (zip code)
803-635-5536
(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 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 [ ]
Applicable only to corporate issuers:
As of May 1, 1996, 747,188 common shares, $0.01 par value per
share were outstanding.
Transitional Small Business Disclosure Format (check one):
Yes [ ] No [X]
PAGE
<PAGE>
SOUTH CAROLINA COMMUNITY BANCSHARES, INC.
FORM 10-QSB
INDEX
<TABLE>
<CAPTION>
PAGE
<S> <C>
PART I - FINANCIAL INFORMATION
ITEM 1 FINANCIAL STATEMENTS 1
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF
OPERATIONS 7
PART II - OTHER INFORMATION
ITEM 1 LEGAL PROCEEDINGS 11
ITEM 2 CHANGES IN THE RIGHTS OF THE CORPORATION'S
SECURITY HOLDERS 11
ITEM 3 DEFAULTS BY THE CORPORATION ON ITS SENIOR
SECURITIES 11
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS 11
ITEM 5 OTHER INFORMATION 11
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K 11
SIGNATURES 12
</TABLE>
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
SOUTH CAROLINA COMMUNITY BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
<TABLE>
<CAPTION>
June 30, 1995 March 31, 1996
(Audited) (Unaudited)
- -------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Cash and due from banks $ 313 $ 91
Interest-earning deposits 2,836 5,455
Investment securities:
Held to maturity (estimated
market value $6,225 and $4,428) 6,183 4,386
Loans receivable, net 33,047 32,724
Mortgage-backed securities:
Held to maturity (estimated
market value $79 and $67) 78 67
Premises and equipment, net 440 420
Federal Home Loan Bank stock 429 429
Accrued interest receivable 364 328
Foreclosed real estate 171 111
Prepaid expenses and other assets 86 77
- -------------------------------------------------------------------------------
Total assets $ 43,947 $ 44,088
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
LIABILITIES:
Savings deposits $ 30,106 $ 31,192
Borrower's escrow deposits -- 48
Accrued income taxes -- 3
Deferred income taxes 136 135
Accrued expenses and other
liabilities 355 157
- -------------------------------------------------------------------------------
Total liabilities 30,597 31,535
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COMMITMENTS AND CONTINGENCIES -- --
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STOCKHOLDERS' EQUITY
Preferred stock - $.01 par value:
200,000 shares authorized,
none issued and outstanding -- --
Common stock - $.01 par value:
1,400,000 shares authorized,
747,188 shares issued and
outstanding 8 8
Additional paid-in capital 7,227 7,268
Retained earnings (substantially
restricted) 6,704 6,861
Treasury stock - 33,087 shares
common -- (590)
Unearned ESOP shares (589) (531)
Unearned RRP shares -- (463)
- -------------------------------------------------------------------------------
Total stockholders' equity 13,350 12,553
- -------------------------------------------------------------------------------
Total liabilities and
stockholders' equity $ 43,947 $ 44,088
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
See accompanying notes to consolidated financial statements.
PAGE
<PAGE>
SOUTH CAROLINA COMMUNITY BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
(In thousands, except per share amounts) 1995 1996 1995 1996
- --------------------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C> <C> <C>
INTEREST INCOME:
Loans $ 713 $ 690 $ 2,144 $ 2,109
Mortgage-backed securities 1 2 5 6
Investment securities 76 54 268 229
Other interest-earning assets 45 89 140 215
- --------------------------------------------------------------------------------------------------------------
Total interest income 835 835 2,557 2,559
- --------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE:
Savings deposits 327 412 968 1,242
- --------------------------------------------------------------------------------------------------------------
NET INTEREST INCOME 508 423 1,589 1,317
PROVISION FOR LOAN LOSSES -- -- -- --
- --------------------------------------------------------------------------------------------------------------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 508 423 1,589 1,317
- --------------------------------------------------------------------------------------------------------------
NONINTERET INCOME:
Refund of pension plan contributions made
in previous years -- -- 69 --
Late-payment charges and other 9 12 31 32
- --------------------------------------------------------------------------------------------------------------
Total noninterest income 9 12 100 32
- --------------------------------------------------------------------------------------------------------------
NONINTEREST EXPENSE:
Compensation and employee benefits 115 132 284 446
Occupancy expense 7 13 32 42
Deposit insurance premiums 18 18 61 52
Data processing 10 13 31 32
Legal fees 15 7 38 23
Investor relations 5 10 20 32
Loss on sale of foreclosed real estate 5 -- 5 6
Other 8 27 73 115
- --------------------------------------------------------------------------------------------------------------
Total noninterest expense 183 220 544 748
- --------------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 334 215 1,145 601
INCOME TAX EXPENSE 117 63 421 210
- --------------------------------------------------------------------------------------------------------------
NET INCOME $ 217 $ 152 $ 724 $ 391
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
WEIGHTED AVERAGE COMMON SHARES AND
EQUIVALENTS OUTSTANDING 720 709 719 738
NET INCOME PER COMMON SHARE $ .30 $ .21 $ 1.01 $ .53
DIVIDENDS PRE COMMON SHARE -- -- .25 .30
</TABLE>
PAGE
<PAGE>
SOUTH CAROLINA COMMUNITY BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Additional Unearned Unearned
Common Paid-in Retained Treasury ESOP RRP
(In thousands) Stock Capital Earnings Stock Shares Shares Total
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Nine Months Ended March 31, 1995
(Unaudited)
Balance at June 30, 1994 $ -- $ -- $ 6,152 $ -- $ -- $ -- $ 6,152
Net income -- -- 724 -- -- -- 724
Dividends declared -- -- (195) -- -- -- (195)
Common stock issued 8 7,795 -- -- -- -- 7,803
Stock issue and conversion costs -- (584) -- -- -- -- (584)
Total ESOP shares to be funded -- -- -- -- (624) -- (624)
Value of ESOP shares allocated -- 9 -- -- 25 -- 34
- -------------------------------------------------------------------------------------------------------
Balance at March 31, 1995 $ 8 $ 7,220 $ 6,681 $ -- $(599) $ -- $13,310
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
Nine Months Ended March 31, 1996
Balance at June 30, 1995 $ 8 $ 7,227 $ 6,704 $ -- $(589) $ -- $13,350
Net income -- -- 391 -- -- -- 391
Dividends declared -- -- (234) -- -- -- (234)
Common stock purchased for
treasury -- -- -- (590) -- -- (590)
Value of ESOP shares allocated -- 41 -- -- 58 -- 99
Total RRP shares to be funded -- -- -- -- -- (568) (568)
Cost of RRP shares earned -- -- -- -- -- 105 105
- -------------------------------------------------------------------------------------------------------
Balance at March 31, 1996 $ 8 $ 7,268 $ 6,861 $ (590) $(531) $(463) $12,553
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
</TABLE>
PAGE
<PAGE>
SOUTH CAROLINA COMMUNITY BANCSHARES, INC.
Statement of Cash Flows (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
For the Nine Months Ended March 31,
1996 1995
- -------------------------------------------------------------------------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 391 $ 724
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 21 21
Loss on sale of foreclosed real estate 5 6
Decrease in deferred loan fees (14) (18)
Accretion of discount on investment
securities (22) --
(Increase) or decrease in accrued
interest receivable (25) 36
Increase in prepaid expenses and
other assets (61) (21)
Increase in accrued income taxes 107 3
Decrease in income tax prepayments
refundable 36 30
Increase or (decrease) in deferred
tax liability 17 (1)
Increase or (decrease) in accrued
expenses and other liabilities 6 (3)
Amortization of unearned ESOP and RRP
shares 34 188
- -------------------------------------------------------------------------------
Net cash provided by operating
activities 828 632
- -------------------------------------------------------------------------------
INVESTING ACTIVITIES:
(Increase) or decrease in loans
receivable (609) 338
Decrease n mortgage-backed securities 15 11
Sale of foreclosed real estate 96 57
Purchase of equipment (6) (1)
Purchase of RRP stock -- (568)
Maturity of time deposits 100 --
Purchase of investment securities (5,014) 299
Maturity of investment securities 3,138 2,096
- -------------------------------------------------------------------------------
Net cash (used in) or provided by
investing activities $(2,280) $ 1,634
- -------------------------------------------------------------------------------
FINANCING ACTIVITIES:
(Decrease) or increase in savings
deposits $(4,746) $ 1,086
Increase in borrowers' escrow -- 48
Decrease in escrow deposits for
stock purchases (6,705) --
Proceeds of stock issue, net of
related expense 6,832 --
Purchase of treasury stock -- (590)
Dividends paid (195) (413)
- -------------------------------------------------------------------------------
Net cash (used in) or provided by
financing activities (4,814) 131
- -------------------------------------------------------------------------------
(DECREASE) OR INCREASE IN CASH AND
CASH EQUIVALENTS (6,266) 2,397
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 8,453 3,149
- -------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 2,187 $ 5,546
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SUPPLEMENTAL DISCLOSURES
Cash paid for:
Interest $ 1,088 $ 1,256
Income taxes 237 178
Transfers from loans to real estate
acquired through foreclosure 87 4
</TABLE>
PAGE
<PAGE>
SOUTH CAROLINA COMMUNITY BANCSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Note 1 - BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements
reflect the assets, liabilities, stockholders' equity, income,
expense, and cash flows of South Carolina Community Bancshares,
Inc. (the Company) and its wholly-owned subsidiary, Community
Federal Savings and Loan Association (the Association), for the
periods indicated. All significant intercompany balances and
transactions have been eliminated.
The Company's initial stock offering and the Association's
conversion to stock ownership were completed simultaneously on
July 7, 1994. In its initial offering, the Company sold 780,275
shares of common stock for a total of $7.8 million. It used one-
half the net proceeds to acquire all the stock of the
Association; the other one-half was retained for future
investment.
The accompanying unaudited consolidated financial statements were
prepared for purposes of SEC Form 10-QSB, and therefore do not
include all the disclosures required by generally accepted
accounting principles for a complete presentation. In the
opinion of management, the accompanying financial statements
reflect all adjustments (consisting only of normal and recurring
accruals) necessary for a fair presentation of consolidated
financial condition at June 30, 1995 and March 31, 1996,
consolidated results of operations for the three-month and nine-
month periods ended March 31, 1995 and 1996, consolidated changes
in stockholders' equity for the nine-month periods ended March
31, 1995 and 1996, and consolidated cash flows for the nine-month
periods ended March 31, 1995 and 1996.
Consolidated net income for the three-month and nine-month
periods ended March 31, 1996 are not necessarily indicative of
the results which may be expected for the full year.
Other significant accounting policies are disclosed in the
Company's audited consolidated financial statements for the year
ended June 30, 1995 and in the Company's Form 10-KSB for the year
ended June 30, 1995.
NOTE 2 - INVESTMENT SECURITIES
All investment securities are designated as held to maturity and
are stated at acquisition cost, adjusted for accretion of
discount and amortization of premium. Premium and discounts that
are significant in amount are amortized to interest income by use
of a systematic method the results of which are not materially
different from those which would be obtained by use of the level-
yield interest method. Premiums and discounts that are not
significant in amount are amortized to interest income upon
maturity or sale.
PAGE
<PAGE>
SOUTH CAROLINA COMMUNITY BANCSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(Tabular amounts in thousands)
NOTE 2 - INVESTMENT SECURITIES (concluded)
Carrying values, estimated market values, and unrealized gains
and losses of investment securities are summarized as follows:
<TABLE>
<CAPTION>
June 30, 1995 March 31, 1996
- -------------------------------------------------------------------------------
<S> <C> <C>
Amortized cost $ 6,183 $ 4,386
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Estimated market value $ 6,225 $ 4,428
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Net unrealized gain $ 42 $ 42
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
NOTE 3 - LOANS RECEIVABLE
The carrying amount of loans receivable is tabulated as follows:
<TABLE>
<CAPTION>
June 30, 1995 March 31, 1996
- -------------------------------------------------------------------------------
<S> <C> <C>
First mortgage real estate loans $ 33,936 $ 33,526
Loans on savings accounts 204 249
Less:
Undisbursed portion of
construction loans (480) (457)
Deferred loan fees, net of (319) (301)
Allowance for losses (294) (293)
- -------------------------------------------------------------------------------
$ 33,047 $ 32,724
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
No loans are held for sale.
NOTE 4 - SAVINGS DEPOSITS
Savings deposits are summarized as follows:
<TABLE>
<CAPTION>
June 30, 1995 March 31, 1996
- -------------------------------------------------------------------------------
<S> <C> <C>
Regular passbook $ 2,293 $ 2,183
Money-market passbook 4,223 4,356
Certificates 23,590 24,653
- -------------------------------------------------------------------------------
$ 30,106 $ 31,192
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
<PAGE>
<PAGE>
SOUTH CAROLINA COMMUNITY BANCSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(Tabular amounts in thousands)
NOTE 5 - STOCK BENEFIT PLAN
The Company has established three plans to provide stock
ownership to its and the Association's eligible directors and
employees: (i) an employee stock ownership plan (ESOP) under
which 64,222 shares have been purchased for future service
awards, (ii) a recognition and retention plan (RRP) under which
31,211 shares have been purchased for future service awards, and
(iii) an incentive stock option plan (ISOP) under which optionees
would be allowed to purchase 78,028 shares at a price per share
equal to its fair market value on the date the option is granted.
The ESOP's stock purchase was from the Company's initial offering
and was funded by a Company loan which is expected to be repaid
primarily by Association contributions to the Plan. Shares are
to be allocated to participants each year in the ratio that the
debt retirement payments made during that year bears to the total
debt retirement paymens due as of the beginning of the year.
A total of 21,704 shares has so far been awarded under the RRP,
with an additional 9,507 shares reserved for future awards.
4,340 RRP shares have already vested and become distributable in
each of the years 1996-1999. All the authorized RRP shares have
been purchased in the open market at a total cost of $568,000.
Options have been awarded under the ISOP to purchase a total of
48,212 shares at a price of $13.50 per share, with options to
purchase an additional 29,816 shares reserved for future awards.
Options to purchase 9,642 shares have already vested and become
exercisable, and a like number is expected to vest and become
distributable in each of the years 1996-1999. No decision has
been made as to whether shares subject to option under the ISOP
will be purchased in the open market, will be from shares
presently held in the treasury, or will be previously-unissued
shares.
NOTE 6 - NET INCOME PER COMMON SHARE
Net income per common share is calculated by using the average
number of shares and equivalents outstanding during the period.
ESOP shares are considered as outstanding only to the extent they
have been allocated to participants. Open-market purchase of RRP
shares has now been completed, and these are therefore considered
as outstanding; previously, they were considered as outstanding
only to the extent they had been allocated but had not yet been
purchased. ISOP equivalent shares are calculated according to
the treasury stock method.
PAGE
<PAGE>
SOUTH CAROLINA COMMUNITY BANCSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(Tabular amounts in thousands)
NOTE 7 - FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
The Company is a party to financial instruments with off-balance-
sheet risk created in the normal course of business to meet the
financing needs of its customers. These financial instruments
are commitments to extend credit, and include to varying degrees
elements of credit and interest-rate risk in excess of the amount
recognized in the statement of financial condition. The Company
uses the same credit policies in extending loan commitments as it
does in making loans. Because many loan commitments expire
without being accepted by the customer, this amount does not
necessarily represent future cash requirements.
Approximately 90% of the real estate loans in the Company's
portfolio are collateralized by properties located within its
primary lending area of Fairfield County, South Carolina. In the
event of a severe economic downturn in that geographic area,
depressed real estate prices could result in market and credit
risk in excess of that which is recognized in the financial
statements.
NOTE 8 - DEPOSIT INSURANCE PREMIUMS
The Company pays a deposit insurance premium equal to .23% of
savings deposits to the Savings Association Insurance Fund
(SAIF). The rate paid by commercial banks for insurance of their
deposits is considerably lower than .23%, and the differential
could result in a competitive disadvantage to the Company in
attracting and retaining deposits.
One proposal to eliminate the above-mentioned disparity in
insurance rates calls for the assessment of a one-time special
premium on SAIF-insured deposits of approximately .85%, followed
by a reduction of regular insurance rates to a level comparable
to that paid by commercial banks. Management is unable to
predict at this time whether the proposal will be adopted or, if
it is adopted, how much the special assessment will be and
whether future SAIF and BIF premium rates will in fact be
equalized.
A related proposal would require federally-insured thrift
institutions to convert from their existing thrift charter to a
bank charter. Such a conversion would result in an institution's
paying income tax on the amount by which the bad debt deductions
they were allowed after the year 1987 exceeded the amount that
would have been allowed had the deduction been based on actual
loss experience. This proposal, if adopted, would not have a
significant effect on the Company's financial condition or
results of operations because deferred income taxes have already
been calculated and recorded for virtually all the bad debt
deductions involved.
PAGE
<PAGE>
Item 2: Management's Discussion and Analysis of Financial
Condition and Results of Operations
GENERAL
The earnings of the Company depend primarily on the level of
net interest income, which is the difference between interest
earned on the Association's interest-earning assets, consisting
primarily of loans receivable, interest-earning deposits at other
institutions, and investment securities, and the interest paid on
interest-bearing liabilities, consisting of savings accounts.
Net interest income is a function of the Association's interest
rate spread, which is the difference between the average yield on
interest-earning assets and the average rate paid on interest-
bearing liabilities, as well as a function of the average balance
of interest-earning assets as compared to interest-bearing
liabilities. The Association's earnings also are affected by its
level of noninterest income, and noninterest expense, including
primarily compensation and related costs, occupancy and
equipment, SAIF insurance premiums, data processing and other
noninterest expense. Earnings also are affected significantly by
general economic and competitive conditions, particularly changes
in market interest rates, government policies and actions of
regulatory authorities, which events are beyond the control of
the Association.
As discussed in Note 8 to the Consolidated Financial
Statements, the FDIC Board has reduced the insurance premium
assessed on deposits insured by the Bank Insurance Fund ("BIF").
The FDIC reduced the BIF premiums from a range of 23 to 31 basis
points, which is the range of premiums currently paid on deposits
insured by the SAIF, to a range of 0 to 31 basis points. The FDIC
estimated that in excess of 90% of banks whose deposits are
insured through the BIF would be assessed at the lowest premium
rate. Due to the reserve levels of the SAIF, the FDIC has not
proposed a reduction in the SAIF insurance premiums and it is not
expected that, absent legislative developments, the insurance
premiums assessed on SAIF deposits could be reduced until the end
of the decade. The deposits held by the Bank are insured through
the SAIF and, although the Bank currently pays the lowest premium
assessed on SAIF deposits, any reduction in BIF premiums, without
a similar reduction in SAIF premiums, places the Bank at a
competitive disadvantage since BIF insured institutions could
either: (1) pass through to depositors in the form of higher
rates the reduction in deposit premiums, which would cause the
Bank to increase the rates on its deposits without an offsetting
reduction in premium expense; (2) increase BIF insured
institutions profitability, which may not be available to the
Bank; or (3) a combination of both. Management continues to
monitor the situation and is working with the various trade
associations the Bank is affiliated with to achieve equality in
the insurance premium assessment.
Legislation has been proposed to recapitalize the SAIF fund
and possibly consolidate the BIF and SAIF funds. One feature of
the proposal calls for a special one-time assessment on all SAIF-
insured institutions of up to 80 basis points to bring the SAIF
fund up to its required level of capitalization. It is assumed
that after this assessment takes place, that the on-going level
of insurance premium assessments for the SAIF-insured
institutions would be reduced to 4 basis points. Based upon the
Bank's deposit base at December 31, 1995, the special assessment
could cause a charge to earnings of approximately $69,869, while
a reduction in the insurance premium assessment rate from 23
basis points to 4 basis points would reduce annual premium
expenses by approximately $67,000. It is not known at this time
when and if this legislation would be approved and implemented.
FINANCIAL CONDITION
At March 31, 1996, total assets were $44.1 million,
compared to total assets of $43.9 million at June 30, 1995.
Savings deposits increased slightly to $31.2 million at March 31,
1996, compared to $30.1 million at June 30, 1995, an increase of
3.1%, inclusive of interest credited. At March 31, 1996,
Community Federal's nonperforming assets totaled $589,000, or
1.34% of total assets, compared to $444,000, or 1.00% of total
assets, at June 30, 1995. This increase is the result of an
increase in past-due mortgage loans, partially off-set by a
decrease in foreclosed real estate. Stockholders' equity
decreased $797,000, or 6.0%, to $12.6 million at March 31, 1996,
reflecting the re-purchase of shares by the Company, as well as
the purchase of shares to fund the Company's Recognition and
Retention Plan, the dividend payments of $413,000 during the nine
month period, partially off-set by the Company's net income.
RESULTS OF OPERATION
The earnings of the Association depend primarily on its
level of net interest income, which is the difference between
interest earned on the Association's interest-earning assets,
consisting primarily of mortgage loans, investment securities,
and interest-bearing deposits at other institutions, and the
interest paid on interest-bearing liabilities, which consist
primarily of savings deposits. The Association reported net
income of $152,000 for the three months ended March 31, 1996,
compared to $217,000 for the 1995 three month period, a decrease
of $65,000, or 30.0%. The Association reported net income of
$391,000 for the nine months ended March 31, 1996, compared to
$724,000 for the 1995 nine month period, a decrease of $333,000,
or 46.0%. The 1995 nine month period included a $69,000 refund
of pension plan contributions made in previous years.
Interest income was unchanged in the three months ended
March 31, 1996, compared to the 1995 period. A decrease in
interest on loans receivable and on investment securities was
offset by an increase of $44,000 in interest income on other
interest earning assets. Interest expense on savings deposits
increased $85,000 as the balance of savings deposits increased
and the rates paid on deposits increased. There was no provision
for loan losses during the periods. Net interest income after
provision for loan losses decreased $85,000, or 16.7%, to
$423,000 in the 1996 quarter compared to $508,000 the 1995
quarter.
Interest income was virtually unchanged during the nine
month periods, at $2,559,000, for the 1996 period, compared to
$2,557,000 for the 1995 period. A slight decrease in interest on
loans receivable and investment securities was offset by an
increase in interest income on other interest earning assets.
Interest expense on savings deposits increased $274,000, or
28.3%, as the balance of savings deposits increased and the rates
paid on deposits increased. There was no provision for loan
losses during the periods. Net interest income after provision
for loan losses decreased $272,000, or 17.1%, to $1.3 million in
the 1996 period compared to the 1995 period.
Excluding a refund of pension plan contributions made in
previous years of $69,000 in the 1995 nine month period,
noninterest income was virtually unchanged for both the three and
nine month periods. Noninterest expense increased $37,000, or
20.2%, in the 1996 three month period, and $204,000, or 37.5%, in
the 1996 nine month period. Increases in compensation and
related costs in the three and nine month 1996 periods,
respectively, and increases in legal fees and investor relations
expenses associated with being a public company, were primarily
responsible for the increases in noninterest expense.
<PAGE>
<PAGE>
PART II -- OTHER INFORMATION
Item 1. Legal Proceedings.
Not applicable.
Item 2. Changes in Securities.
Not applicable.
Item 3. Defaults Upon Senior Securities.
Not applicable.
Item 4. Submission of Matters to a Vote of Securities Holders.
Not applicable.
Item 5. Other Information.
Not applicable.
Item 6. Exhibits and Reports on Form 8-K.
Not applicable.
PAGE
<PAGE>
SIGNATURES
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.
SOUTH CAROLINA COMMUNIY
BANCSHARES, INC.
(Registrant)
5/13/96 Alan W. Pullen
Date (Signature)
President and CEO
5/13/96 Terri C. Robinson
Date (Signature)
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1995
<PERIOD-END> MAR-31-1995
<CASH> 91
<INT-BEARING-DEPOSITS> 5455
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 4453
<INVESTMENTS-MARKET> 10799
<LOANS> 32724
<ALLOWANCE> 0
<TOTAL-ASSETS> 44088
<DEPOSITS> 31192
<SHORT-TERM> 0
<LIABILITIES-OTHER> 343
<LONG-TERM> 0
<COMMON> 8
0
0
<OTHER-SE> 12545
<TOTAL-LIABILITIES-AND-EQUITY> 44088
<INTEREST-LOAN> 2115
<INTEREST-INVEST> 229
<INTEREST-OTHER> 215
<INTEREST-TOTAL> 2559
<INTEREST-DEPOSIT> 1242
<INTEREST-EXPENSE> 1242
<INTEREST-INCOME-NET> 1317
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 748
<INCOME-PRETAX> 601
<INCOME-PRE-EXTRAORDINARY> 601
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 391
<EPS-PRIMARY> .53
<EPS-DILUTED> 0
<YIELD-ACTUAL> 7.96
<LOANS-NON> 549
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 502
<ALLOWANCE-OPEN> 293
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 293
<ALLOWANCE-DOMESTIC> 293
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
