Capital Bank Reports Record Earnings & Loan Growth
Net Income Expands 86%
Loans Swell 57%, Assets Grow 27%
SAN JUAN CAPISTRANO, Calif.--(BUSINESS WIRE)--Capital Bank (OTCBB:CBJC) today announced results of operations for the fourth quarter and year ending 2013 marked by record earnings, exceptional loan growth and continued asset expansion. Pre-tax income totaled $3.6 million compared to $2 million the previous year. Following a $1.5 million tax provision, after tax net income totaled $2.05 million compared to $1.1 million in 2012 for a robust 86% increase. Assets expanded 27% to almost $181 million while loans swelled an impressive 57%, or $55.8 million, to $153 million.
“Our solid profitability, combined with the growth of our fortress like balance sheet, supported by a strong capital base and growing market share have been noted by the capital markets; we are very pleased with our stock which continues to out-perform our peers.”
J.M. “Mike” Justice Jr., President & Chief Executive Officer, stated: “Six years ago today, in the midst of one of the most tumultuous financial markets in history, we successfully closed our Initial Public Offering, raising over $15 million in capital. Since that time, our Bank has thrived, growing from infancy into a strong, stable and highly profitable financial institution. Our consistent solid growth year-over-year has provided sufficient mass to achieve the economies of scale necessary to produce exceptional financial returns. This past year we were successful in expanding our loan portfolio by over 57%, while still maintaining our conservative underwriting standards as evidenced by our strong asset quality, producing a 59% increase in recurring net interest income, further reducing our need for loan sale premium income. This approach has produced a dependable and ongoing income stream which has resulted in an 86% increase in net income. Our Return on Average Assets (ROA) of 1.28%, growth in Shareholders’ Equity of 17% combined with a 5.19% Net Interest Margin and a 55% Efficiency Ratio is highly satisfactory and enviable in our industry. 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 almost 15%, well above the regulatory standard of 10% to be considered well capitalized. We continue to carry the 5 Star Rating of Excellence and were recognized as one of the Top 100 Banks in the Country by the national independent bank rating firm of Bauer Financial, which is indicative of the safety of Capital Bank for our depositors. Additionally, the Bank received the prestigious Super Premier Performance Award from the renowned Findley Reports on Financial Institutions. The strength of our growing capital base driven by ongoing earnings, combined with the quality of our balance sheet should provide comfort to our customers that we are here for them today, tomorrow and for many years to come.” Mr. Justice also commented, “Our solid profitability, combined with the growth of our fortress like balance sheet, supported by a strong capital base and growing market share have been noted by the capital markets; we are very pleased with our stock which continues to out-perform our peers.”
John R. McGill, Senior Executive Vice President & Chief Operating Officer, stated: “We are very optimistic about our opportunities for growth and expansion. Our solid recurring income stream provides the needed capital to fuel further strong loan and asset growth, which will enhance future income and shareholder value. Our lending team, led by Frank J. Ford, Executive Vice President and Chief Credit Officer, has done an exceptional job in significantly expanding our loan portfolio without succumbing to competitive pricing pressures as evidenced by our 6.8% weighted portfolio yield, all the while maintaining impeccable asset quality.” McGill commented further: “Our commitment to providing our customers with best of breed technology to access needed banking services continues to expand. This past year we released our Mobile Banking Application that allows our customers to access their accounts from their Smart Phones or Tablets. Customers can check account balances, view check images, deposit checks, transfer funds and pay bills easily wherever they may be. Business owners or managers on the go can authorize wire transfers, payroll and ACH transactions as well. Our Mobile Banking Application complements our long standing Capital Connection Online Banking service and Capital Express Deposit product that allows customers to deposit checks easily without leaving their office.”
McGill concluded: “Our success in achieving solid profitability, building a quality balance sheet, and leveraging our strong capital base is attributable to the dedication 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
Crowell Weedon & Company
Contact: Steve Arrigo, Senior Vice President (949) 644-1890
Raymond James & Associates
Contact: Doug Deubel, Vice President (888) 734-0540
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||$||20,286||$||17,393||17||%|