SAN JUAN CAPISTRANO, Calif.--(EON: Enhanced Online News)--Capital Bank (OTCBB:CBJC) today announced results of operations for the third quarter of 2013. Year to date pre-tax income more than doubled from $1.05 million in 2012 to $2.3 million for the current year. The Bank became taxable for book purposes last year and recognized almost $1 million in tax expense year to date, producing net after tax income of $1.3 million. Assets grew 33% to $173.6 million while loans expanded 62%, or $55 million, to $143.4 million.
“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, shareholders and our broadening base of loyal customers. We are thankful for their ongoing confidence and support.”
J.M. “Mike” Justice Jr., President & Chief Executive Officer, stated, “Our ongoing disciplined focus on executing our long term business plan continues to produce highly satisfactory results. Our strong growth in loans of 62%, while maintaining our conservative underwriting standards as evidenced by our exceptional asset quality, has resulted in a 64% increase in recurring net interest income and a net interest margin of 5.03%. This, combined with a 35% increase in non-interest income and diligent expense control, has resulted in a 121% increase in pre-tax income and an enviable efficiency ratio of 57.4% Our Pre-Tax Return on Average Assets (ROA) of 2.05% and Return on Average Equity (ROE) for our shareholders of over 16% is highly satisfactory and significantly outperforms our peers. Our continued strong growth in assets and loans combined with expanding profitability is a testament to the commitment of our entire team. The prospects for further growth, expansion and profitability are bright for our Bank.”
Mr. Justice continued, “Our capital position is strong with total risk based capital of over 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 for 2012 from the renowned Findley Reports on Financial Institutions. The strength of our growing capital base driven by ongoing earnings and 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. Our solid profitability, combined with the growth of our fortress like balance sheet, and 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 income stream provides the needed capital to fuel loan and asset growth which will further enhance income and shareholder value. Our highly productive U.S. Small Business Administration Loan Department continues to be one of the most active and productive SBA lenders in the State and is in the top 70 in the Nation. Our SBA team has done an exceptional job providing the much needed financing to fuel job growth for the communities we serve. We have money to lend.” McGill commented further: “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, shareholders and our broadening base of loyal customers. 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 UNAUDITED FINANCIAL DATA
|(All figures in thousands) as of:|
|Total Shareholders’ Equity||$||19,573||$||15,914||23||%|