Community Bankshares Inc. (SC) Announces Second Quarter 2006 Earnings.ORANGEBURG, S.C. -- Community Bankshares Inc., (AMEX AMEX See: American Stock Exchange :SCB ScB abbr. Latin Scientiae Baccalaureus (Bachelor of Science) ), announced consolidated net income of $1,373,000 or $.30 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the quarter ended June 30, 2006 compared to $1,551,000 or $.35 per diluted share for the quarter ended June 30, 2005, a decrease of $178,000 or 11.5%. Samuel L. Erwin, Community Bankshares Inc.'s CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "I was disappointed that our second quarter earnings were less than the comparable period a year ago. However much of the reduction was the anticipated result of staffing and infrastructure improvements made since the first quarter of 2005. Staffing improvements included the addition of several strategically needed senior officers and, on a short-term basis through the second quarter of 2006, a Special Assets Officer to help reduce the level of problem loans. The company's relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. in January 2006 of its headquarters to a newly constructed building also increased our premises expense. These increases in expense more than offset the increase in non-interest income and net interest income before provision expense during the quarter." Erwin continued, "Over the past year we have made significant improvements to our infrastructure, staffing, and risk management processes. We have also made significant progress in the identification, measurement, management and mitigation MITIGATION. To make less rigorous or penal. 2. Crimes are frequently committed under circumstances which are not justifiable nor excusable, yet they show that the offender has been greatly tempted; as, for example, when a starving man steals bread to satisfy of our problem loans. These are costly but necessary investments in our future. Further, our decision earlier this year to consolidate our four bank charters and the business of our mortgage company into a single bank charter will make us a more efficient and effective banking organization. This process is moving toward consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. in early October 2006. We believe that these improvements will help us to grow, improve and enhance shareholder value in the coming quarters and years." Consolidated assets for Community Bankshares totaled $551.8 million at June 30, 2006 compared to $556.8 million at December 31, 2005, a decrease of $5 million or 0.9%. For the same periods, gross loans totaled $419.2 million compared to $414 million, an increase of $5.2 million or 1.3%. For the same periods, deposits totaled $459.2 million compared to $464.2 million, a decrease of $5 million or 1.1%. Community Bankshares, Inc.'s common stock is traded on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors SCB. Community Bankshares Inc., based in Orangeburg, South Carolina Orangeburg, also known as "The Garden City," is the largest city and county seat of Orangeburg County, South Carolina, United States. The population was 12,765 at the 2000 census. The population has steadily declined since the 1950s. , is the holding company for the Bank of Ridgeway A ridgeway is a road or path that follows the highest part of the landscape. Roads and pathways
This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Investors are cautioned that all forward-looking statements involve risks and uncertainties, and several factors could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements relate to anticipated revenues, gross margins, earnings and profitability, adequacy of the allowance for loan losses, the probability of future large provisions to the allowance for loan losses, expansion of mortgage services marketing Services marketing is marketing based on relationship and value. It may be used to market a service or a product. Marketing a service-base business is different from marketing a product-base business. , improvement of mortgage services efficiency, and growth of the market for our services and products. The following factors, among others, could cause actual results to differ from those indicated in the forward-looking statements: uncertainties associated with market acceptance of and demand for the company's services and products, impact of competitive products and pricing, dependence on third party suppliers, changes in the economic circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or of borrowers, deteriorations of the economies of the markets in which the company's customers are located, and uncertainties associated with the development of technology. Investors are directed to the company's 2005 annual report, which is available from the company without charge or from its website, www.communitybanksharesinc.com, for a more complete description of the company's business.
COMMUNITY BANKSHARES INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollar amounts in thousands, except per share data)
Six months ended Quarter ended
June 30, June 30,
Income Statement Summary 2006 2005 2006 2005
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Net interest income $10,594 $10,308 $5,367 $5,271
Provision for loan losses $1,290 $1,035 $675 $585
Non-interest income $3,994 $3,631 $2,060 $1,966
Non-interest expense $9,259 $8,344 $4,632 $4,225
Income tax provision $1,465 $1,649 $747 $876
Net income $2,574 $2,911 $1,373 $1,551
Basic earnings per common share:
Average shares 4,424 4,399 4,434 4,404
Earnings per share $0.58 $0.66 $0.31 $0.35
Diluted earnings per common share:
Average shares 4,495 4,500 4,504 4,504
Earnings per share $0.57 $0.65 $0.30 $0.35
Cash dividends per share $0.22 $0.20 $0.11 $0.10
June 30, Dec. 31, June 30,
Balance Sheet Summary 2006 2005 2005
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Gross loans $419,170 $413,984 $413,875
Total assets $551,808 $556,836 $529,197
Total deposits $459,243 $464,209 $433,418
Shareholders' equity $50,803 $48,992 $52,013
Common shares outstanding 4,436 4,404 4,404
Book value per share $11.45 $11.12 $11.81
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