Community Capital Bancshares Inc (OTCMKTS: ALBY) shares dropped after the company, and AB&T Bank announced Q1 2021 results for the quarter ending March 31, 2021.
Community Capital & AB&T grew earnings in Q1 2021
In Q1 2021, AB&T’s pattern of increasing Earnings per Share and Net income continued, with Earnings per fully-diluted share up 46.2% YoY and Net Income up 46.4%. A combination of decreased non-interest expenses and high net interest income resulted in a fiscal quarter with a record net income.
Average Loans increased by 8.3% compared to 1Q 2020, while average deposits increased by 42.6% YoY. In comparison to the same period in 2020, average noninterest-bearing deposits increased by 56.0%. A combination of factors fueled the increase in loans and deposits. Partly it was due to the Bank’s active participation in the Paycheck Protection Program (PPP), which Congress established to prevent the impacts of the COVID-19 pandemic. Additionally, the company experienced growth in deposits in Q1 2021 from new customers.
Nonperforming assets as a percentage of total assets were at 0.05% at the end of the quarter, indicating that the bank’s asset quality remained high. Also, the Bank’s Allowance for Losses on Loans and Leases as a percentage of total loans, including PPP loans, was 1.52% of total loans. In 1Q 2021, net charge-offs were 0.0%.
Community Capital increased shareholder’s equity.
Despite a 12.3% increase in average shareholders’ equity from 1Q 2020 to 1Q 2021, the extraordinary growth in deposits resulted in a drop in tier 1 capital to 7.67% as a percentage of average assets. The Common Equity Tier 1 Ratio and Total Capital Ratio, on the other hand, improved to 12.45% and 13.71%, respectively, at the end of the quarter. Fully Diluted Book Value per Share for the Bank was $14.76.
 Reports 46.2% YoY Growth in Earnings Per Share in Q1 2021){kind=link}