CHECKPOINT
The extraordinary monetary and fiscal stimulus introduced into the economy by the Federal Reserve and Congress over the past two years has served to drive interest rates to historically low levels. The decline in rates caused our Net Interest Income and, in turn, our Net Income to decline in the first quarter of 2022. The good news is that we are well positioned for the rising interest rate environment that began during the quarter and which we expect to continue for at least the remainder of this year.
Additionally, we are encouraged by the strength we find in our core relationships which is revealed when we undertake a deep dive into the balance sheet. What we see is that core loans net of Payroll Protection Payment (PPP) loans grew to $162.5 million in 2022 from $153.3 million the same period in March 2021, a 6.0% increase. Now that all PPP loans have been repaid and none remain outstanding, we are focusing our full attention on growing core loans.
Demand deposits, which are a proxy for deep and lasting customer relationships, are up 11.6% from a year ago and 74.1% from March 2020 when the pandemic was just beginning. The growth in demand deposits is partly due to the government stimulus previously mentioned, but also due to significant new relationships coming to the bank. This bodes well for the future as economic activity finds an equilibrium in the months and years ahead.
Even as we traversed the pandemic, operating expenses declined. Efficiencies gained through the rollout of planned technology enhancements and through expanded capabilities among our associates are reflected in the reduced overhead expenses.
Asset quality remains strong despite the level of Non-Performing Assets at quarter-end. The elevated percentage is the result of one relationship. We have reserved for what we currently believe to be the maximum expected loss as the liquidation process continues.
Capital remains strong as indicated by the various capital ratios.
While Earnings per Share are lower than a year ago, we are encouraged by the increase in economic activity and we expect better days ahead as the economy emerges from the pandemic.
Highlights for the 1st Quarter 2022 compared to 1st Quarter 2021:
• Net Income decreased 34.3%.
• Net Revenue decreased 12.2%.
• Non-Interest Income for the quarter was down 12.2% due to lower account service charges and secondary market mortgage revenue.
• Non-Interest Expense declined 0.4% due to continued disciplined expense management.
• Average Loans decreased 3.9% as PPP loans were repaid.
• Average Deposits decreased 2.4%
• Average Non-Interest-Bearing Demand Deposits were up 11.6%.
• Asset quality remained strong with a 1.45% Allowance for Losses on Loans and Leases as a percent of Total Loans.
• Fully Diluted Earnings per Share decreased 34.6% to $0.30 for the quarter.
• Fully Diluted Book Value per Share stood at $16.14 at the end of the first quarter 2022, up 9.3% from the end of the first quarter 2021.
Our team of bankers and support staff continued to respond to client needs while aligning ourselves internally in order to take advantage of opportunities for additional growth in the short and long-term. AB&T maintained its leadership role in Albany and Southwest Georgia by supporting our nonprofit and business communities through our involvement in numerous civic and community organizations.
At AB&T, all our efforts will remain focused on realizing our vision of becoming the Gold Standard of community banking, through top level service, innovation and dedication to community.
Community Capital Bancshares, Inc. First Quarter 2022 Performance Highlights
Albany, GA April 29, 2022
Community Capital Bancshares, Inc. (OTCQX: ALBY)
FINANCIAL SUMMARY (UNAUDITED)
(in thousands except per share amounts)
OPERATING RESULTS
Net Interest Income Non-Interest Income Net Revenue Non-Interest Expense Net Income Before Taxes Income Tax Expense Net Income
BALANCE SHEET
Average Assets Average Loans
Average Non-Interest-Bearing Demand Deposits Average Deposits
Average Stockholders' Equity Period Ending Stockholders' Equity
BANK CAPITAL RATIOS
Quarter-End
March 31, 2022 March 31, 2021
Year-To-Date Comparison
% Change
March 31, 2022 March 31, 2021
1,617
1,841
-12.2%
1,617
224
255
-12.2%
224
1,841
2,096
-12.2%
1,841
1,359
1,364
-0.4%
1,359
482
732
-34.2%
482
105
158
-33.5%
105
377
574
-34.3%
377
262,343
268,155
-2.2%
262,343
168,927
175,738
-3.9%
168,927
100,864
90,364
11.6%
100,864
224,777
230,284
-2.4%
224,777
20,079
18,161
10.6%
20,079
20,414
18,584
9.8%
20,414
Tier 1 Leverage Ratio 8.63%
Common Equity Tier 1 (CET1) 12.54%
Total Capital Ratio 13.79%
ASSET QUALITY METRICS
Non-Performing Assets 3,283
Non-Performing Assets as % of Total Assets 1.26%
OREO 0
Provision for Losses on Loans and Leases 0
Allowance for Losses on Loans and Leases as % of Total Loans 1.45%
YTD Charge-Offs as % of Total Loans 0.00%
PER SHARE
Diluted Earnings Per Share
Average Shares Outstanding (fully diluted) Period Ending Shares Outstanding (fully diluted) Fully Diluted Book Value Per Share
PERFORMANCE RATIOS
Return on Average Assets
Return on Average Common Equity Efficiency Ratio
$0.30 1,264,503 1,264,503 $16.14
$0.46 1,258,729 1,258,729 $14.76
-34.6% $0.30
0.5% 0.5% 9.3%
% Change
1,841 -12.2%
255 -12.2%
2,096 -12.2%
1,364 -0.4%
732 -34.2%
158 -33.5%
574 -34.3%
268,155 -2.2%
175,738 -3.9%
90,364 11.6%
230,284 -2.4%
18,161 10.6%
18,584 9.8%
$0.46 -34.6%
1,264,503 1,264,503
1,258,729 0.5%
1,258,729 0.5%
$16.14 $14.76 9.3%
0.57% 7.51% 73.82%
0.86% 12.64% 65.08%
0.14% 0.86% 1.88% 12.64% 73.82% 65.08%
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Community Capital Bancshares Inc. published this content on 29 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2022 22:07:04 UTC.