SAN JUAN CAPISTRANO, Calif.–(Business Wire)–
Capital Bank (OTCBB:CBJC) today announced results of operations for the second
quarter of 2010 marked by continued strong growth in loans, deposits and assets.
Deposits expanded by almost $43 million or 134% from the same period last year
to $74.2 million, while loans swelled 92% to $62.9 million by quarter end.
Assets nearly doubled climbing 99% to $85.6 million, a $42.6 million increase.
While the Bank reported a net loss of $594,000, more than $370,000 of this is
attributable to non-cash charges for stock option expense and to maintain
prudent loan loss reserves required by the outstanding loan growth the bank has
experienced. Further, the Bank`s overall operating loss has improved 43% from
the same period last year and is solely attributable to planned initial
operating costs as no operational or loan losses were incurred.
J.M. “Mike” Justice Jr., President & Chief Executive Officer, stated “We are on
the cusp of operating profitability as evidenced by the significant decline in
our net operating loss. Our ongoing strong growth in loans, the bank`s primary
earning asset, has resulted in a 127% increase in interest income compared to
the same period last year. I continue to be very pleased with our strong growth
pattern and success in executing our business plan. While many banks continue to
struggle to eliminate problem loans from their balance sheet and mitigate
further deterioration in earnings, we have no such problems and the future looks
very bright for Capital Bank.” Mr. Justice stated further that “While loan,
deposit and asset growth continue to be very strong for our Bank, we have not
sacrificed quality simply for the sake of growth. Our Bank holds no foreclosed
property, does not have a single past due or non-performing loan and maintains
prudent loan loss reserves equal to 1.46% of outstanding loans at quarter`s end.
Total capital continues to be exceptionally strong with total estimated risk
based capital of over 15%, well in excess of the regulatory standard of 10% to
be considered well capitalized. Mr. Justice stated further, “The strong growth
of our quality balance sheet combined with our ongoing positive earnings trend,
strong capital base and growing market share have been noted by the capital
markets; we are very pleased with our stock that continues to out-perform our
peers in these still uncertain times.”
John R. McGill, Executive Vice President & Chief Operating Officer, stated, “We
are very pleased that our strong performance and exceptional balance sheet
growth was recently recognized with a 4 Star Rating of Excellence from the
nationally recognized independent bank rating firm of Bauer Financial. We are
confident that our commitment to and success in executing our business plan will
continue to be recognized by the capital markets and rating agencies, as well as
develop significant long term shareholder value.”
Dedicated to becoming recognized as the Premier Business and Professional Bank
of south Orange County, by providing innovative financial solutions tailored to
the needs of our customers, which exceed their expectations, 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
Market Makers:
Steve Arrigo, Senior Vice President (949) 644-1890
Crowell Weedon & Company
David Perry, Assistant Vice President (415) 538-5746
Howe, Barnes, Hoeffer & Arnett
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 FINANCIAL DATA -UNAUDITED
(All figures in thousands) as of:
Balance Sheet 6/30/10 6/30/09 Change %
Total Assets $ 86,635 $ 42,996 99 %
Gross Loans $ 62,908 $ 32,705 92 %
Total Deposits $ 74,159 $ 31,632 134 %
Total Shareholders` Equity $ 9,931 $ 11,049
Capital Bank
J.M. “Mike” Justice Jr , President & C.E.O.
949-489-4202
or
John R. McGill, Executive Vice President & C.O.O.
949-489-4203
Copyright Business Wire 2010