SAN JUAN CAPISTRANO, Calif.--(BUSINESS WIRE)--Capital Bank (OTCBB: CBJC) announced the results of operations for the fourth quarter and year ending December 31, 2014, which reflect record earnings and strong asset growth. Pre-tax income for the year totaled $5.2 million compared to $3.5 million for 2013 for a $1.7 million increase. Following a $2.2 million tax provision, net income for 2014 totaled $3.02 million, up $975 thousand from the $2.05 million recorded for 2013, a 48% improvement. Net interest income totaled $10.2 million for 2014, up from almost $8.1 million in 2013, for an increase of $2.1 million or 26% due to ongoing solid loan demand, which produced a $25 million or 16% increase in outstanding loans to $178 million. Assets expanded 40% during the year to $252 million from $181 million at the end of 2013 fueled predominately by a $60 million or 40% growth in deposits to $210 million.
J.M. “Mike” Justice Jr., President & Chief Executive Officer stated, “We continue to be pleased with our strong balance sheet growth which has produced healthy and expanding year-over-year profitability. Our consistent compounding asset growth has provided sufficient mass to achieve the economies of scale necessary to produce exceptional financial returns. This past year we were successful in expanding both our core deposit and earning asset base, while still maintaining our conservative underwriting standards. This is evidenced by our strong asset quality and continued improvement in recurring net interest income. At the same time, we have been able to maintain a highly desirable and enviable Efficiency Ratio of approximately 55%. This approach has produced a dependable and ongoing income stream which has resulted in an exceptional Return on Average Assets (ROA) of 1.44% and Return on Equity (ROE) of 13.78%. Our continued strong growth in assets, loans and net interest income combined with ongoing and expanding profitability is a testament to the hard work and dedication of our entire team. The prospects for further growth, expansion and profitability are bright for our Bank.” Mr. Justice continued, “Our capital position continues to be strong with total risk based capital of 14.7%, 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 that year. In addition, the Bank was once again recently 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.”
John R. McGill, Senior Executive Vice President & Chief Operating Officer stated, “Our opportunities for growth, profitability and market expansion continue to flourish. During this past year we opened our San Diego County Regional Banking Center in the City of Encinitas lead 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 entire 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 and are preparing to open our permanent Banking Center at 277 North El Camino Real in Encinitas sometime early in the second quarter of this year.”
McGill concluded, “Our success in achieving solid profitability, building a quality balance sheet, and leveraging our strong capital base is attributable to the skill of our employees, the support of committed directors and shareholders, as well as a broadening base of loyal customers and business partners. We are thankful for their ongoing confidence and support.”
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.
Doug Deubel, Vice President, (888) 734-0540
Raymond James & Associates
SNL Financial: http://www.snl.com
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.
SELECTED AUDITED FINANCIAL DATA
|(All figures in thousands) as of:|
|Total Shareholders’ Equity||$||23,381||$||20,286||15||%|