CapitalMark Bank & Truston Thursday reported earnings for the year ended Dec. 31, 2014. Net income for the year ended 2014 was $7.4 million, an increase of 27% from year end 2013. Net income per fully diluted common share increased 28% from year ending 2013 to $0.92.
“CapitalMark had a record setting year for 2014, fueled by exceptional loan and non-interest bearing deposit growth. Loans grew 23% year-over-year while non-interest bearing deposits grew 28% over the same period. With $930 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 chief executive officer.
“This year’s growth in core earnings noted below was powered by additional banker teams in the Chattanooga and Knoxville markets and a strategic restructuring of the balance sheet. Management redeployed assets from lower yielding securities into higher yielding loans during the year. This strategy supported the growth in qualified small business lending and a ranking of 16th for the banks across the country that participated in the Small Business Lending Fund program. The markets we serve continue to respond positively to our unique banker team model,” Mr. Holley said.
ANNUAL AND QUARTERLY HIGHLIGHTS:
· Net income was $7.4 million for the year ended December 2014, compared to net income of $5.8 million for the year ended December 2013, an increase of 26.8% year-over-year. Net income for the quarter ended December 31, 2014 was $2.5 million, compared to $1.5 million in the third quarter of 2014 and $2.2 million for the same quarter 2013.
· Net income per fully diluted common share was $0.92 for the year ended December 2014, compared to net income per fully diluted common share of $0.72 for the year ended December 2013, an increase of 27.8% year-over-year.
· Total assets grew to $930 million, or 12.3% since December 31, 2013.
CORE EARNINGS:
· Gross loans grew at a rate of 23.0% or $134 million for year ending 2014.
· Deposits increased to $781 million, or 14.0% year-over-year.
· Non-interest bearing deposits grew to $151 million, a 27.6% increase year-over-year. Non-interest bearing deposits comprise 19.3% of total deposits at the end of 2014.
· Revenues for year ending December 31, 2014 grew to a record $35.0 million, a growth rate of 12.5% year-over-year. Revenues for the quarter ended December 31, 2014 were also a record $9.3 million, a $400 thousand or 4.4% increase from quarter ended September 30, 2014, and an increase of 12.5% from the quarter ended December 31, 2013.
· Return on average assets for quarter ending December 31, 2014 increased 0.40% to 1.08% as compared to quarter ending September 30, 2014 of 0.68%. Return on average assets for year ending 2014 increased 0.10% to 0.83% compared to the same period in 2013.
ASSET QUALITY:
· Ratio of past due loans > 30 days to total loans maintained a 0% change comparing fourth quarter of 2014 to the 0.09% reported for the third quarter of 2014. The ratio of past due loans > 30 days to total loans decreased by 0.6% when compared to 0.15% for the same period of 2013.
· The ratio of allowance for loan losses to total loans decreased to 1.00% for year ending 2014, compared to 1.22% for year ending 2013.
· Non-performing assets to total loans plus foreclosed real estate decreased to 0.52% in the fourth quarter of 2014, compared to 1.42% on September 30, 2014.
· Net charge offs to average loans decreased at December 31, 2014 to 0.46% from 0.50% in the same period of 2013.
OTHER HIGHLIGHTS:
· Tier 1 Leverage Ratio continues to be strong at 10.25% for the fourth quarter 2014.
· Non-interest expense for the year increased 2.6% when compared to year end 2013.
· Non-interest revenue from the Wealth and Trust Department has increased $184 thousand or 28.7% year ending 2014 when compared to year ending 2013.
· Non-interest revenue generated from Mortgage originations decreased 11.6% when compared to the previous quarter.
· Efficiency ratio has improved 5.74% to 59.23% for the year ending December 31, 2014 when compared to the year ending 2013.