Community Bankshares Inc. Announces First 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 $1,201,000 or $.27 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 March 31, 2006 compared to $1,360,000 or $.30 per diluted share for the quarter ended March 31, 2005, a decrease of $159,000 or 11.7%. 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, "Although I was disappointed that our first quarter earnings were less than our earnings a year ago, I am pleased that the reduction was the natural result of staffing and infrastructure improvements made after the first quarter of 2005. The improvements included adding a Chief Credit Officer, a Human Resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. director, a new President at our Ridgeway A ridgeway is a road or path that follows the highest part of the landscape. Roads and pathways
2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of its headquarters and operations center The facility or location on an installation, base, or facility used by the commander to command, control, and coordinate all crisis activities. See also base defense operations center; command center. to a newly constructed building also increased our premises expense. These increases in expense more than offset the substantial increase in non-interest income this quarter, mostly associated with mortgage loan production, and a slight increase in net interest income after provision for loan losses." Erwin continued, "We are not satisfied with our current financial performance. Over the past year we have made significant improvements to our infrastructure, our staffing, and our risk management processes. These are necessary investments in our future. In addition, our recent decision 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 organization. We believe that these improvements, which are part of a continuous process, will help us to grow, improve and enhance shareholder value." Consolidated assets for Community Bankshares totaled $554.6 million at March 31, 2006 compared to $556.8 million at December 31, 2005, a decrease of $2.2 million or .39%. For the same periods, gross loans totaled $417.5 million compared to $414 million, an increase of $3.5 million or .84%. For the same periods, deposits totaled $459.7 million compared to $464.2 million, a decrease of $4.5 million or .98%. 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, Florence National Bank, Sumter National Bank, Orangeburg National Bank and Community Resource Mortgage, Inc. 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.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollar amounts in thousands, except per share data)
For the quarter ended March 31, 2006 2005
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Net interest income $5,227 $5,037
Provision for loan losses $ 615 $ 450
Non-interest income $1,934 $1,665
Non-interest expense $4,627 $4,119
Income tax provision $ 718 $ 773
Net income after taxes $1,201 $1,360
Basic earnings per common share:
Average shares 4,414 4,394
Earnings per share $ 0.27 $ 0.31
Diluted earnings per common share:
Average shares 4,499 4,497
Earnings per share $ 0.27 $ 0.30
Cash dividends per share $ 0.11 $ 0.10
At At At
March 31, Dec. 31, March 31,
2006 2005 2005
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Gross loans $417,451 $413,984 $406,049
Total assets $554,643 $556,836 $523,069
Total deposits $459,665 $464,209 $430,066
Shareholders' equity $ 49,917 $ 48,992 $ 50,734
Common shares outstanding 4,426 4,404 4,403
Book value per share $ 11.28 $ 11.12 $ 11.52
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