Capital Bank Announces Third Quarter Results Reflect Strong Growth and Profitability

SAN JUAN CAPISTRANO, Calif.--(BUSINESS WIRE)-- Capital Bank (OTCQB: CBJC) announced results of operations through the third quarter of 2015, which reflect continued strength in both balance sheet growth and profitability. At the end of the third quarter, gross loans totaled almost $188 million, reflecting year-over-year growth of $15 million or 9%. During the same period, total assets grew nearly $39 million or 16% from $241 million to over $280 million, and total deposits increased almost $36 million or 18% from $197 million to just under $233 million. Net income for the third quarter of 2015 totaled $907 thousand, a 10% increase from the $825 thousand reported for the third quarter of 2014, an accomplishment given the recognition of significant costs associated with opening the Bank’s second regional banking center in San Diego County this year. Year-to-date net income totaled $2.3 million at the end of the third quarter.

J.M. “Mike” Justice Jr., President & Chief Executive Officer stated, “We are very pleased with the results from operations this year. Our consistent and compounding strong growth in core deposits and assets is the result of our commitment to providing our customers with the outstanding service they expect and deserve. We continue to maintain our conservative underwriting standards as evidenced by our exceptional asset quality. At the same time, we have been able to maintain a commendable net interest margin above 4% and an enviable efficiency ratio below 60%. This approach has produced a dependable and ongoing income stream which has resulted in a return on average assets (ROAA) of 1.23% and a return on equity (ROE) of 12.45%, both significantly above that of our peer banks. These results are a testament to the hard work and dedication of the entire Capital Bank team. We look forward to a bright future as we continue to expand and bring customized technology solutions to our customers, enabling them to focus on and grow their businesses and their success.

Mr. Justice added, “Our overall performance continues to garner industry accolades including being recognized by the American Banker as one of the top 200 Best Performing Community banks in the nation, ranking number 91 overall based on a three year average return on equity, and #1 Best Performing Bank in the State of California for all banks in the state with less than $500 million in assets. Additional recognition includes Number One Overall Best Performing Bank in the Nation for 2014 by Bankerscaddy.com for the second consecutive year; one of the Top 20-Best Performing Banks in the Nation for 2014 for all banks with less than $500 million in assets by SNL Financial; and, 7th Healthiest Bank in America by DepositAccounts.com for that year. In addition, the Bank was once again 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 be strong. Our San Diego County 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, continue to contribute meaningful growth in loans and deposits. We are confident our presence in, and commitment to, the San Diego County market will positively impact the Capital Bank franchise for years to come.

McGill added, “We are very thankful for the ongoing support from, and confidence of, many people, including our talented team of banking professionals, our board of directors and shareholders, and importantly, our growing base of loyal customers and business partners. Each has contributed significantly to the success Capital Bank has experienced.”

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:CBJCFor information regarding the purchase or sale of Capital Bank’s stock, contact:Steve Arrigo, Senior Vice President, (949) 644-1890Crowell Weedon & Company, a division of D.A. Davidson & Co.orDoug Deubel, Vice President, (888) 734-0540Raymond James & Associates

AmericanBanker: www.americanbanker.com/community-banking/what-the-top-200-publicly-traded-community-banks-do-better-than-peersSNL Financial: http://www.snl.comDepositAccounts.com: www.depositaccounts.com/banks/capital-bank-ca.html#healthThe Findley Reports: http://www.findley-reports.comBauer 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 UNAUDITED FINANCIAL DATA
(All figures in thousands) as of:
Balance Sheet			9/30/15				9/30/14				Change %
Total Assets			$	280,315			$	241,417			16%
Total Deposits			$	232,911			$	197,189			18%
Gross Loans			$	187,836			$	172,823			9%
Total Shareholders’ Equity			$	25,776			$	22,586			14%

View source version on businesswire.com: http://www.businesswire.com/news/home/20151116005295/en/

Capital Bank
J.M. “Mike” Justice Jr., President & C.E.O.
949-489-4202
[email protected]
or
John R. McGill, Senior Executive Vice President & C.O.O.
949-489-4203
[email protected]

Source: Capital Bank

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