CapitalMark Third Quarter Earnings Up 20%
Chattanooga, Tennessee – October 23, 2014 – CapitalMark Bank & Trust today 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. 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.
- 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.
- 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.
- 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.
About CapitalMark Bank & Trust:
CapitalMark Bank & Trust is a full-service commercial bank with four private client offices throughout East Tennessee to include Chattanooga, Cleveland, Knoxville and Oak Ridge. CapitalMark’s Banker Teams serve the needs of privately owned businesses, their owners and managers, as well as professionals, executives and their families. Services offered include mortgage, trust and wealth management. For more information, please visit: capitalmark.com.
Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made based upon management’s belief as well as assumptions made by, and information currently available to, management pursuant to “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Our actual results may differ materially from the results anticipated in forward-looking statements due to a variety of factors, including governmental monetary and fiscal policies, deposit levels, loan demand, loan collateral values, securities portfolio values, interest rate risk management, the effects of competition in the banking business from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market funds and other financial institutions operating in our market area and elsewhere, including institutions operating through the Internet, changes in governmental regulation relating to the banking industry, including regulations relating to branching and acquisitions, failure of assumptions underlying the establishment of reserves for loan losses, including the value of collateral underlying delinquent loans, and other factors. We caution that such factors are not exclusive. We do not undertake to update any forward-looking statement that may be made from time to time by, or on behalf of, us.
CapitalMark Promotes Cyber Security Awareness Month
Chattanooga, Tennessee – October 3, 2014 – CapitalMark Bank & Trust is supporting National Cyber Security Awareness Month (NCSAM), which is recognized every October to ensure consumers have the education and resources they need to protect their personal information. In observance of NCSAM, CapitalMark is sharing best practices and valuable tips on how to prevent identity theft, protect sensitive information and account access, and bank safely and securely from a computer or mobile device. Visit CapitalMark.com weekly for hot topics, best practices, and recent threats related to cybersecurity.
Home Depot Data Breach
On September 2nd, 2014, Home Depot reported that payment card information of approximately 60 million customers has been breached from transactions that occurred in stores from April 2014 until September 2014. There is no evidence at this time that the breach impacts customers who shopped online at HomeDepot.com.
CapitalMark's Advantage Forum Focuses on Small Business Owners
Chattanooga, Tennessee – September 15, 2014 – CapitalMark Bank & Trust recently announced the launch of the CapitalMark Advantage Forum, an advisory series designed to guide clients and friends on how to strategically enhance and protect their personal wealth and business success. The series is one of many ways CapitalMark seeks to provide the ultimate banking experience to clients.
Local Bankers Move to CapitalMark
Knoxville, Tennessee – August 13, 2014 – CapitalMark Bank & Trust announces the addition of a new Banker Team comprised of local bankers Josh R. Hopkins, M. Brandon Hackett and Cameron M. Puckett. The new Banker Team will be based in CapitalMark’s Knoxville office located in the historic U.S. Post Office building downtown. Hopkins, Hackett and Puckett have extensive banking experience at regional financial institutions.
CapitalMark Hires Julie McLain
Chattanooga, Tennessee – August 12, 2014 – CapitalMark Bank & Trust is pleased to announce the addition of Julie McLain to its Wealth & Trust department. McLain will report to Wealth & Trust Group Head Phil Barnes as she assists and supports all Wealth & Trust Team with onboarding and assisting all clients to ensure the ultimate client experience and satisfaction. She was previously at regional financial institution supervising wealth & trust administrative assistants and supporting the private banking division.
CapitalMark Second Quarter Earnings Remain Strong
Chattanooga, Tennessee – July 24, 2014 – CapitalMark Bank & Trust today 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 Recognized as Top Performing Bank
CapitalMark Launches the Advantage Forum
Chattanooga, Tennessee – June 9, 2014 – CapitalMark Bank & Trust announced its launch of the CapitalMark Advantage Forum, an advisory series designed to guide clients and friends how to enhance and protect their personal wealth and business success.