CapitalMark 2nd Quarter Earnings Remain Strong

Friday, July 25, 2014

CapitalMark Bank & Trust on Friday reported earnings for the second quarter ended June 30, 2014. Net income for the six months ended was $3.3 million, an increase of 39% from the same period in 2013. Net income per fully diluted common share increased 41% from the same six month period last year to $0.41.

“CapitalMark had another quarter of strong results fueled by exceptional loan and non-interest bearing deposit growth.  Loans grew 25% year-over-year while non-interest bearing deposits grew 29% over the same period. With $879 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.

“The growth in core earnings noted below was fueled 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. This strategy supported the growth in our markets for high quality business lending. CapitalMark will continue to add experienced bankers to our team. The markets we serve have responded positively to our approach of personal service,” Mr. Holley said.

SECOND QUARTER HIGHLIGHTS:

· Net income was $3.3 million for the six months ended June 30, 2014, compared to net income of $2.4 million for the six months ended June 30, 2013, an increase of 38.8% year-over-year.  Net income for the quarter ended June 30, 2014 was $1.63 million, compared to $1.69 million in the first quarter of 2014 and $1.56 million for the second quarter 2013.

· Net Income per fully diluted common share was $0.41 for the six months ended June 30, 2014, compared to net income per fully diluted common share of $0.29 for the six months ended June 30, 2013, an increase of 41.4% year-over-year.

· Total Assets grew to $879 million, or 13.5% since June 30, 2013.

CORE EARNINGS: 

· Gross loans grew at an annualized rate of 22.5% or $65.7 million for the first six months of 2014.

· Deposits increased to $736 million, or 10.1% year-over-year.

· Non-interest bearing deposits grew to $135 million, a 29.1% increase year-over-year.  Non-interest bearing deposits comprise 18.3% of total deposits at the end of the second quarter 2014. 

· Revenues for the six months ended June 30, 2014 grew to a record $16.7 million, a growth rate of 13.1% year-over-year.  Revenues for the quarter ended June 30, 2014 were also a record $8.5 million, a $190 thousand increase from quarter ended March 31, 2014.  Revenues increased 10.1% from the quarter ended June 30, 2013.

· Return on average assets for the six months ended June 30, 2014 increased 26.2% to 0.77% compared to the same period in 2013.

ASSET QUALITY:

· Ratio of past due loans > 30 days to total loans decreased to 0.07% for the second quarter of 2014 when compared to 0.25% for the first quarter of 2014.  The ratio of past due loans > 30 days to total loans slightly increased when compared to 0.00% for the same period of 2014.

· The ratio of allowance for loan losses to total loans has been steady at 1.25% for June 30, 2014, compared to 1.24% the same period in 2013.

· Non-performing assets to total loans plus foreclosed real estate decreased to 0.83% in the second quarter of 2014, compared to 1.08% on June 30, 2013.

· Net charge offs to average loans decreased at June 30, 2014 to 0.09% from 0.42% in the same period of 2013.  Net charge offs to average loans increased slightly when compared to a negative 0.11% for the first quarter 2014.

OTHER HIGHLIGHTS: 

· Tier 1 Leverage Ratio continues to be strong at 10.52% for the second quarter 2014.

· Non-interest expense decreased $53 thousand or 1.0% from the previous quarter.

· Non-interest revenue from the Wealth and Trust Department has increased 15.1% in the second quarter of 2014 when compared to the first quarter of 2014.

· Non-interest revenue generated from net gains on sale of Mortgages remained flat decreasing $1 thousand when compared to the previous quarter.

· Efficiency ratio has improved 9.9% to 59.79% for the six months ended June 30, 2014 when compared to the same period in 2013.



Startup Week Chattanooga Announces Event Schedule

Following months of extensive planning and dozens of event submissions from local startup supporters, the schedule for Startup Week Chattanooga (SWC) is now available to the public. Held Oct. 6 -­- 11, this six-­-day celebration will feature nearly 50 events that highlight Chattanooga’s growing startup ... (click for more)

New Hamilton County Businesses

Here are the new business licenses from the County Clerk's office: SPRAY EQUIPMENT & SERVICE CENTER, INC. 311 PATTIE WICHITA, KS 67211   SPRAY EQUIPMENT & SERVICE CENTER, INC. 311 PATTIE WICHITA, KS 67211   DEVELOP CHATTANOOGA INC 1467 MARKET ST #207 CHATTANOOGA, TN 37402   DEVELOP CHATTANOOGA INC 1467 MARKET ST #207 CHATTANOOGA, ... (click for more)

Chancellor Rules That IDB Must Reimburse Attorney Fees, Other Legal Costs For Helen Burns Sharp On TIF Lawsuit

Chancellor Pam Fleenor has ruled that Helen Burns Sharp, who sued over the validity of a $9 million Tax Increment Financing (TIF) for a planned major development on Aetna Mountain, should be reimbursed her discretionary costs as well as her attorney fees. Ms. Sharp said in a recent court filing that her legal bills to attorney John Konvalinka were $74,427 at the time. The ... (click for more)

Jumoke Johnson Jr. To Plead Guilty On Selling Crack Cocaine

A youth who was in the news earlier as a teen who had been the first in his family to graduate from Brainerd High School and who found a patron willing to pay for his college education is set to plead guilty on Tuesday to a charge of selling crack cocaine. Jumoke Johnson Jr., who turned 21 on Saturday, dropped out of Miles College in Alabama after one semester and has been ... (click for more)

ChattaData Is A Real Advance For The City

This past Tuesday, the city of Chattanooga's new performance management tool called ChattaData was unveiled. As the chairman of the City Council’s Budget & Finance Committee, I am excited to witness the city putting this important information online in a way that is accessible and transparent to all taxpayers. This approach shines light on how we as a city prioritize our ... (click for more)

Roy Exum: It’s ‘Hate The SEC’ Day

The boo birds came out on the fly on the ESPN website Sunday afternoon, this moments after the latest AP College Football “Top 25” included eight teams from the Southeastern Conference.   What set naysayers aglow was Mississippi State, after upsetting LSU 34-29 Saturday night, debuted on the list at No. 14 while Clemson, playing Florida State in an overtime thriller, got tossed ... (click for more)