CapitalMark Records 14th Consecutive Quarterly Profit

Wednesday, July 18, 2012

CapitalMark Bank & Trust Wednesday reported earnings of $1.9 million for the second quarter ended June 30.

“We are pleased to report our 14th consecutive profitable quarter, a notable achievement in light of the sustained economic and regulatory hurdles facing our industry," said R. Craig Holley, CapitalMark’s chairman, president and CEO.  "Although CapitalMark’s earnings were supported by a one-time securities gain, our pre-tax income excluding the gain reflects growth of 9 percent for the quarter and 27 percent year-to-date when compared to the same periods last year. Our continued balance sheet growth places CapitalMark at a record $740 million in total assets. While we maintain steady growth, I want to underscore our conservative management reflected in the bank’s favorable credit quality metrics.” 

SECOND QUARTER HIGHLIGHTS:

• Net Income per fully diluted common share was $.25 for the quarter, up from $.14 in the same quarter last year. 

• Net Income includes a one-time securities gain of $1.6 million.

• Income before securities gain and taxes increased 9.02 percent over the same quarter last year.

• Year-to-date Net Income totals $3.4 million.

• Year-to-date Income before securities gain and taxes increased 27.05 percent over the six-months ended June 2011.

• Total Assets were $740 million representing a 51.42 percent increase year-over-year. 

• Deposits totaled $643 million, a 50.67 percent increase over the second quarter 2011.

• Loans were $403 million representing growth of 25.64 percent year-over-year.

• Tier 1 Leverage Ratio was 10.31 percent.

• Non-Performing Assets to Total Assets Ratio decreased to 0.97 percent from 1.16 percent in the prior quarter.

• Net Charge-offs to Average Loans was .06 percent.

• Ratio of Past Due Loans > 30 Days to Total Loans was .01 percent.

Mr. Holley continued, “With our recently-announced stock offering, investors can purchase CapitalMark stock at $12.50 and share ownership in a successful, locally-based bank. In the midst of unpredictable banking headlines, CapitalMark remains a bright spot offering consistent, positive news. Additional capital will support our expansion into Oak Ridge and Cleveland with the openings of those offices slated for early third quarter. The stock offering memorandum is available from any CapitalMark banker.”



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