Capital Pacific Bancorp Reports Positive Financial Results for Fourth Quarter of 2011
(firmenpresse) - PORTLAND, OR -- (Marketwire) -- 01/26/12 -- Capital Pacific Bancorp (OTCQB: CPBO) (OTCBB: CPBO) ("the Company") reported net income of $267,000 for the three months ended December 31, 2011, or $.08 per common share on a fully diluted basis. For the twelve months ended December 31, 2011, the Company reported net income of $695,000, or $.21 per common share on a fully diluted basis.
"Net income for the fourth quarter, and for the year, grew at a steady pace when compared to the prior year," said Mark Stevenson, President and CEO of Capital Pacific Bancorp. "Our stronger performance is a natural outcome from our efforts to continuously improve asset quality and accelerate the growth of both loans and deposits."
Loans totaled $133.5 million as of December 31, 2011, up $1.8 million in the fourth quarter. For the year, loans increased $8.7 million, or 7%. "We have been focused on seeking quality loan opportunities, with most of our growth coming from within the commercial real estate and multi-family sectors of the market," said Stevenson. "In 2011, loans grew by a meaningful level, especially given the lack of economic growth in our region."
Average quarterly client deposits for the fourth quarter grew slightly to $168.4 million, up 1% when compared to the prior quarter. "Our fourth quarter performance has historically been quieter for deposit growth due to the higher cash outlays that are typical for business clients as the year winds to a close," said Stevenson.
For the year, average client deposits increased $20.9 million, an increase of 14%. "We believe this is a more revealing picture of the growth of the Bank and the result of our diligent work throughout the year. We are very pleased with the new clients we added in 2011." Non interest-bearing demand deposits continue to be a high percentage of total deposits, currently 30% of total deposits and up 21% for the year.
At December 31, 2011, non-performing assets were essentially unchanged when compared to the prior quarter and closed the quarter at $3.5 million. For the year, non-performing assets have declined $6.4 million and non-performing assets as a percentage of total assets has dropped from 5.81% to 1.89%. The composition of non-performing assets is as follows:
During the quarter, the Company charged off $93,000 in loans and received $174,000 in payments on loans on non-accrual status. The Company added one loan to the list of loans on non-accrual status. Forty two percent of the loans on non-accrual status at December 31, 2011 are paid current. Loans on non-accrual status are evaluated for potential upgrade when the borrower has demonstrated a history of performance and the risk of loss has decreased.
Other real estate owned declined 43% in the fourth quarter of 2011. The decline is due to the sale of three properties with a carrying value of $581,000, resulting in gains on sales of approximately $38,000. The Company also recognized $30,000 in property value impairments reflecting persistent weakness in property valuations.
Non-performing assets as of December 31, 2011 by sector were as follows:
(1) Fifty-four percent of non-performing commercial real estate loans are guaranteed by the Small Business Administration.
At December 31, 2011, the Company's reserve for loan losses totaled $2.9 million, or 2.17% of total loans, compared to $2.8 million, or 2.16% of total loans, as of September 30, 2011. The Company's provision for loan losses was $124,000 in the fourth quarter of 2011. For the year, the Company set aside $267,000 in provision for loan losses.
"Provision levels have been modest in 2011 due to the infrequent nature of new problems and the positive trends in overall asset quality," said Stevenson. "However, the current economic conditions continue to cause us to be cautious, and our reserve for loan losses remains elevated. We did experience a small increase in non-performing loans in the fourth quarter due to the addition of one loan now totaling $792,000 which is 90% guaranteed by the Small Business Administration."
On August 4, 2011, the Company announced that it had raised $3.2 million in new common equity at an issue price of $4.35 per share. The new equity was raised to support growth in deposits and loans and broaden the Company's reach into the business community, capitalize on market opportunities with the expansion of our work force and fortify the balance sheet. The Company's total risk-based capital ratio is estimated at 16.8% at December 31, 2011. To be considered well-capitalized, a bank holding company must have total risked-based capital of at least 10.0% of risk-weighted assets.
Net interest income (interest income less interest expense) declined 4% in the three months ended December 31, 2011 when compared to the prior quarter, the result of declining yields on loans.
"Over the last four quarters, loan yields have been impacted by today's low interest rates, flat yield curve and aggressive price competition," said Stevenson. "While we believe that the low cost structure of our deposits and our strong client relationships will help mitigate the decline in interest income, we do expect continued pressure on loan yields going forward."
The net interest margin which measures the net yield on earning assets totaled 3.98% in the fourth quarter of 2011, down from 4.24% when compared to the three months ending September 30, 2011. The sizable decline is due to the aforementioned decline in loan yields and a decline in loan prepayment fees.
Non-interest expense in the fourth quarter of 2011 totaled $1.6 million, down $415,000 when compared to the preceding quarter. The change quarter over quarter is principally due to lower impairments on other real estate owned and other loan workout related expenses.
Capital Pacific Bancorp (OTCQB: CPBO) (OTCBB: CPBO) is the parent company of Capital Pacific Bank, which serves businesses, professionals and non-profit organizations with comprehensive banking expertise and an elite level of service. Centrally headquartered in the Fox Tower in downtown Portland, the Bank's full array of products and services are delivered through a strategic combination of Vice President-level client service officers and the innovative application of technology. For more information on Capital Pacific Bancorp or to see past press releases, visit .
Statements in this release about future events or performance are forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Factors that could affect future results include changes in the financial condition of our borrowers, changes in economic conditions generally, changes in non-performing assets, deteriorating asset values caused by market conditions, loan losses that exceed our reserve for loan losses, gains or losses on other real estate owned, fluctuations in interest rates and the impact any of these factors may have upon clients of the Company. Other factors include competition for loans and deposits within the Company's trade area, and the impact that may have upon growth or income. Although forward-looking statements help to provide complete information about the Company, readers should keep in mind that forward-looking statements may be less reliable than historical information. The Company undertakes no obligation to update or revise forward-looking statements in this release to reflect events or changes in circumstances that occur after the date of this release.
Mark Stevenson
President and CEO
Felice Belfiore
CFO
(503) 796-0100
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Datum: 26.01.2012 - 17:54 Uhr
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News-ID 108278
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