CapitalMark Posts Record $2 Million-Quarter Profit

Thursday, October 04, 2012

CapitalMark Bank & Trust on Thursday reported record earnings of $2.0 million for the third quarter ended Sept. 30, and $5.4 million year-to-date, a record nine-months’ performance for the bank since its inception in 2007.

“We are pleased to report our 15th consecutive quarter of increased earnings, a notable achievement in light of sustained economic and regulatory pressures. Along with top-line growth, we demonstrate continued strengthening of profitability, driven by our unique and efficient banking model. It’s important to note that we continue to carefully manage credit risk, reflected in our favorable credit quality metrics,” said R. Craig Holley, CapitalMark’s chairman, president and CEO.

Third Quarter Highlights:

  • Third quarter Net Income totals $2.0 million, up 238.7% over the same quarter last year.
  • Year-to-date Net Income totals $5.4 million, up 140.2% over the first nine-months 2011.
  • Net Income per fully diluted common share was $0.72 for the quarter, up from $0.32 in the same quarter 2011.
  • Total Assets were $761 million representing a 31.1% increase year-over-year.
  • Deposits totaled $660 million, a 30.5% increase over the third quarter 2011.
  • Gross Loans were $435 million representing growth of 29.4% year-over-year.
  • Tier 1 Leverage Ratio was 10.2%.
  • Non-Performing Assets to Total Assets Ratio decreased to 0.90% from 0.97% in the prior quarter.
  • Net Charge-offs to Average Loans was 0.12%.
  • Ratio of Past Due Loans > 30 Days to Total Loans was 0.42%.
  • Pre-tax income was $3.1 million with security gains of $921 thousand providing income from operations of $2.2 million for the quarter compared to a pre-tax income of $948 thousand with security gains of $166 thousand providing income from operations of $782 thousand for the same quarter 2011.

Mr. Holley said, “We are very pleased with the recently announced deposit market share data that reflect significant increases in both Chattanooga and Knoxville. Investors have a chance to buy CapitalMark stock through Oct. 31; this additional capital supports our expansion into Oak Ridge and Cleveland, with offices opening this month. The stock offering memorandum is available from any CapitalMark banker.”



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