CapitalMark Bank & Trust on Thursday reported earnings for the third quarter ended September 30, 2014. Net income for the quarter was $1.52 million compared to $1.27 million for the same quarter 2013. Net income for the nine months ended was $4.8 million, an increase of 32% from the same period in 2013. Net income per fully diluted common share increased 33% from the same nine month period last year to $0.60.
“CapitalMark had another quarter of strong results fueled by exceptional loan and non-interest bearing deposit growth. Loans grew 22% year-over-year while non-interest bearing deposits grew 42% over the same period. With $910.5 million in total assets, we continue to build core earnings capacity and an operating profile that positions CapitalMark well for the future,” said R. Craig Holley, CapitalMark’s chairman, president and CEO.
Recent deposit market share reports published by the FDIC reveal CapitalMark ranks No. 6 out of 50 financial institutions that serve the bank’s 4-county market area, which include Anderson, Bradley, Hamilton, and Knox counties. Mr. Holley continued, “We can attribute the impressive year over year growth in deposits to the dedicated Banker Teams who deliver an exceptional client experience in all the markets we serve.”
THIRD QUARTER HIGHLIGHTS:
· Net income was $4.8 million for the nine months ended September 30, 2014, compared to net income of $3.7 million for the nine months ended September 30, 2013, an increase of 32.3% year-over-year. Net income for the quarter ended September 30, 2014 was $1.52 million, compared to $1.27 million for the same quarter 2013.
· Net income per fully diluted common share was $0.60 for the nine months ended September 30, 2014, compared to net income per fully diluted common share of $0.45 for the nine months ended September 30, 2013, an increase of 33.3% year-over-year.
· Total assets grew to $911 million, or 14.0% since September 30, 2013.
CORE EARNINGS:
· Gross loans grew 22.3% or $124 million year-over-year.
· Deposits increased to $790 million, or 15.1% year-over-year.
· Non-interest bearing deposits grew to $159 million, a 42.6% increase year-over-year. Non-interest bearing deposits comprise 20.1% of total deposits at the end of the third quarter 2014.
· Revenues for the nine months ended September 30, 2014 grew to a record $25.6 million, a growth rate of 12.5% year-over-year. Revenues for the quarter ended September 30, 2014 were also a record $9.0 million. A $484 thousand increase from the linked quarter and an increase of 11.4% from the quarter ended September 30, 2013.
· Return on average assets for the nine months ended September 30, 2014 increased 0.14% to 0.74% compared to the same period in 2013.
ASSET QUALITY:
· The ratio of past due loans > 30 days to total loans increased slightly to 0.09% for the third quarter of 2014 when compared to 0.07% for the second quarter of 2014. The ratio of past due loans > 30 days to total loans slightly increased when compared to 0.04% for the same period of 2013.
· The ratio of allowance for loan losses to total loans increased to 1.23% for September 30, 2014, compared to 1.18% for the same period of 2013.
· Non-performing assets to total loans plus foreclosed real estate increased to 1.42% in the third quarter of 2014, compared to 0.98% on September 30, 2013.
· Net charge offs to average loans decreased at September 30, 2014 to 0.29% from 0.52% in the same period of 2013. Net charge offs to average loans increased slightly when compared to 0.09% for the second quarter 2014.
OTHER HIGHLIGHTS:
· Tier 1 Leverage Ratio continues to be strong at 10.44% for the third quarter 2014.
· Non-interest expense decreased $299 thousand or 1.9% when compared to the same nine months in 2013.
· Non-interest revenue from the Wealth and Trust Department has increased 16.6% in the third quarter of 2014 when compared to the second quarter of 2014.
· Non-interest revenue generated from net gains on sale of mortgages increased $36.2 thousand when compared to the previous quarter.
· Efficiency ratio has improved 8.78% to 59.85% for the nine months ended September 30, 2014 when compared to the same period in 2013.