AB&T Parent Community Capital Bancshares Announces Positive Q4

Staff Report From Albany CEO

Wednesday, January 31st, 2018

Community Capital Bancshares, Inc. Fourth Quarter 2017 Highlights:

•Net Revenue grew 11.2% compared to 4Q16 and 9.2% year to date compared to 2016, due to a 14.4% increasein Net Interest Income compared to 4Q16 and a 10.4% increase compared to the same period last year.

•Net Income Before Taxes was up 22.8% compared to 4Q16 and 53.2% year to date, compared to the same period in 2016.

•Average Loans for the quarter increased 11.7% compared to 4Q16 and 10.6% from 2016.

•Average Deposits increased 21.4% compared to 4Q16 and 15.8% year to date compared to 2016, while Average Non-Interest Bearing Demand Deposits were up 19.7% from 4Q16 and 18.5% year to date comparedto the same period of 2016.

•The bank’s Efficiency Ratio improved to 77.33% compared to 79.43% in 4Q16 and to 76.95% for 2017 compared to 83.79% in 2016.

•Asset Quality remains strong with a 1.30% Allowance for Loan Losses as a Percent of Total Loans for 2017.

•Net Income After Taxes was impacted by a one-time addition to Income Tax Expense of almost $2.4 million due to enactment of the Tax Cuts and Jobs Act legislation signed into law in December. The consequence of that was a decline in Net Income After Taxes of -1,138.3% from 4Q16 and -322.6% year to date compared to the same period last year.

•Diluted Earnings Per Share, due to the income tax expense, were -$0.35 for the quarter and -$0.23 for the year.  If not for the tax legislation, Diluted Earnings Per Share would have been roughly $0.043 for 4Q16 and $0.166 for the year.

As it did throughout the year, the bank sustained positive results as 2017 came to a close with AB&T showing continually improving performance in several key areas.

AB&T experienced growth in Net Revenue of 11.2% in the fourth quarter compared to 4Q16 and an increase of 9.2% compared to 2016. That rise came as a direct result of a continued increase in Net Interest Income (up 14.4% compared to 4Q16 and 10.4% year over year).

The Net Interest Income growth led to a 22.8% increase in Net Income Before Taxes compared to 4Q16 and a 53.2% increase year to date compared to the same period last year. On the other hand, Net Income After Taxes was impacted by a one-time addition to income tax expense of $2,373,317 stemming from the write down of a deferred tax asset (required by the Financial Accounting Standards Board) when President Trump signed into law the Tax Cuts and Jobs Act in December. That added income tax expense created a Net Loss for 2017 of $1,409,106. However, in future years, the reduction in the top corporate tax rate from 34% to 21% should be beneficial to the bank.

Fourth quarter once again saw continued improvement on the balance sheet with the bank realizing an 11.7% increase in average loans and a 21.4% increase in average deposits compared to 4Q16. Average Assets were also up 21.8% compared to the fourth quarter last year and 14.1% over 2016. Additionally the bank remains well-capitalized and once again reports excellent asset quality.

Notwithstanding the impact of the federal corporate tax rate change, 2017 was a solid year for the bank as AB&T showed appreciable growth across the board, while consistently maintaining high operational standards and practices. AB&T associates continually strive for excellence and their hard work has once again proven the bank can achieve success while providing the exceptional standard of service our current and future clients have come to expect. We believe adherence to our proven formula for success will yield similar results well into the future.