Capital Bank Reports 70% Growth in Net Income, 39% Growth in Assets

SAN JUAN CAPISTRANO, Calif.--()--Capital Bank (OTCBB:CBJC) today announced results of operations through the third quarter of 2014 marked by strong growth in earnings and assets. Year to date pre-tax income totaled $3.9 million compared to $2.3 million the previous year. Following a $1.6 million tax provision, after tax net income totaled almost $2.3 million, producing a 70% increase over the $1.3 million reported for 2013. Assets expanded 39% to $241 million while loans grew 21% to $173 million.

J.M. “Mike” Justice Jr., President & Chief Executive Officer, stated, “We continue to be successful in achieving significant year-over-year growth in earnings and assets. Our ongoing focus on growing a low cost core deposit base is primarily responsible for driving the strong 39% growth in assets we have achieved over the last 12 months. Our investment of these funds in a conservatively under-written loan portfolio to meet the borrowing needs of, and provide economic support to the communities we serve, has produced a 31% increase in recurring net interest income. This approach has produced a dependable and ongoing income stream which has resulted in a 70% increase in net income. Our expanding Return on Average Assets (ROA) of 1.49%, growth in Shareholder’s Equity of 15% combined with a 5.1% Net Interest Margin and a 55% Efficiency Ratio is highly satisfactory and significantly out-performs our industry peers. Our capital position continues to be strong with total risk based capital of over 14%, well above the regulatory standard of 10% to be considered well capitalized. Our overall performance continues to garner industry accolades and was recognized as the #3 Top-Performing Bank in the Nation for 2013 for all banks with less than $500 million in assets by SNL Financial and the 7th Healthiest Bank in America by DepositAccounts.com for this year. In addition, the Bank was once again awarded the prestigious Super Premier Performance Award from the renowned Findley Reports on Financial Institutions and continues to carry the 5 Star Rating of Excellence by the national independent bank rating firm of Bauer Financial. These awards are a testament to the hard work and dedication of our entire team.”

John R. McGill, Senior Executive Vice President & Chief Operating Officer, stated, “Our opportunities for growth, profitability and market expansion continue to flourish. During the second quarter of this year we opened our San Diego County Regional Banking Center in the city of Encinitas led by Senior Vice President & Branch Manager Mary Purviance and San Diego County Regional Manager & Senior Vice President Joe Simmons. During the short period of time this office has been open, Mary, Joe and their team have made significant progress in growing the core deposit base of this office and are contributing positively to our Bank’s overall bottom line. We are confident our Bank will be highly successful in this market.”

Capital Bank is dedicated to being known as the Premier Business and Professional Bank in the markets we serve by providing innovative financial solutions tailored to the needs of our customers while exceeding expectations and producing superior shareholder value that become solutions recognized for…”Banking Outside the Box”.

For Additional Information visit our website at: www.mycapitalbank.com

Stock Symbol: OTCBB:CBJC

For information regarding the purchase or sale of Capital Bank’s stock, contact:

Steve Arrigo, Senior Vice President (949) 644-1890
Crowell Weedon & Company a division of D.A. Davidson & Co.
or
Doug Deubel, Vice President (888) 734-0540
Raymond James & Associates

SNL Financial:
http://www.snl.com

DepositAccounts.com:
www.depositaccounts.com/banks/capital-bank-ca.html#health.

The Findley Reports:
http://www.findley-reports.com

Bauer Financial:
http://www.bauerfinancial.com

Information contained herein may contain certain forward-looking statements that are based on management’s current expectations regarding economic, legislative, and regulatory issues that may impact the Bank’s earnings in future periods. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “intend,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, real estate values, and competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory and technological factors affecting the Bank’s operations, pricing, products and services. The Bank undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

 

CAPITAL BANK
SELECTED UNAUDITED FINANCIAL DATA

(All figures in thousands) as of:

           

Balance Sheet

9/30/14 9/30/13 Change %
Total Assets $ 241,417 $ 173,590 39 %
Total Deposits $ 197,189 $ 152,416 29 %
Gross Loans $ 172,823 $ 143,416 21 %
 
Total Shareholders’ Equity $ 22,586 $ 19,573 15 %

Contacts

Capital Bank
J.M. ”Mike” Justice Jr., President & C.E.O.
949-489-4202
mjustice@mycapitalbank.com
or
John R. McGill, Senior Executive Vice President & C.O.O.
949-489-4203
jmcgill@mycapitalbank.com

Release Summary

Capital Bank Reports 70% Growth in Net Income, 39% Growth in Assets

Contacts

Capital Bank
J.M. ”Mike” Justice Jr., President & C.E.O.
949-489-4202
mjustice@mycapitalbank.com
or
John R. McGill, Senior Executive Vice President & C.O.O.
949-489-4203
jmcgill@mycapitalbank.com