SAN JUAN CAPISTRANO, Calif.--(BUSINESS WIRE)--Capital Bank (OTCQB:CBJC) announced the results of operations for the first quarter of 2015 which reflect significant deposit and asset growth, consistent earnings and the establishment of its full service Regional Banking Center in the City of Encinitas. Total deposits expanded $61.7 million or 39% to $221.3 million from a year ago fueled by growth in lower cost core deposits while assets grew 27% to $256.6 million. The Bank opened its San Diego County Regional Banking Center located at 277 North El Camino Real in the City of Encinitas this past Monday May 4th. Despite the significant expense associated with this expansion, the Bank was successful in maintaining stable and consistent profitability reporting pre-tax income of $1.2 million. Following a $515,000 tax provision, net income totaled $702,000 compared to $700,000 for the same period last year.
J.M. “Mike” Justice Jr., President & Chief Executive Officer stated, “We continue to be pleased with our strong growth in core deposits and resultant quality growth in assets. Our consistent compounding asset growth has provided sufficient mass to achieve the economies of scale necessary to produce exceptional financial returns. Over the past twelve months 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 exceptional 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 53%. This approach has produced a dependable and ongoing income stream which has resulted in a Return on Average Assets (ROA) of 1.15% and Return on Equity (ROE) of 11.76%, almost double that of our peer banks. 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 13.9%, above the regulatory standard of 10% to be considered well capitalized. Our overall performance continues to garner industry accolades and was recognized as one of the Top 20-Best Performing Bank in the Nation for 2014 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 abound. The opening of our permanent San Diego County Regional Banking Center in the City of Encinitas this past week, led by Senior Vice President & Branch Manager Mary Purviance and San Diego County Regional Manager & Senior Vice President Joe Simmons, will contribute significantly to the ongoing growth and profitability of the Capital Bank franchise for years to come following absorption of initial start-up costs. We are confident our Bank will be highly successful in this market.”
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: OTCQB: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.
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CAPITAL BANK |
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SELECTED UNAUDITED FINANCIAL DATA |
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(All figures in thousands) as of: |
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Balance Sheet |
3/31/15 | 3/31/14 | Change % | ||||||||
| Total Assets | $ | 256,622 | $ | 201,866 | 27% | ||||||
| Total Deposits | $ | 221,303 | $ | 159,595 | 39% | ||||||
| Gross Loans | $ | 181,686 | $ | 162,760 | 12% | ||||||
| Total Shareholders’ Equity | $ | 24,163 | $ | 21,008 | 15% | ||||||
