Capital Pacific Bancorp Reports Third Quarter and Nine Months of 2013 Earnings
Results Reflect Strong Loan, Deposit and Earnings Growth
(firmenpresse) - PORTLAND, OR -- (Marketwired) -- 10/23/13 -- Capital Pacific Bancorp (OTCQB: CPBO), a community bank focused on serving the greater Portland area's businesses, professional firms, private schools and nonprofit organizations, today reported financial results for the three and nine months ended September 30, 2013.
In the third quarter of 2013, net income to common shareholders was $431,000 or $0.17 per common diluted share, an increase of 29% compared with $334,000 or $0.13 per common diluted share in the third quarter of 2012.
Net income to common shareholders for the nine months of 2013 increased 57% to $1.20 million or $0.46 per common diluted share, compared with $765,000 or $0.30 per common diluted share for the nine months of 2012. The redemption of preferred stock and the elimination of preferred stock dividends in the second quarter of 2013 contributed to the increase in earnings available to common shareholders in 2013.
Total loans at the end of the third quarter of 2013 were $179.32 million, a 13% increase from $159.20 million at December 31, 2012, the increase primarily reflecting 22% growth in owner and non-owner occupied commercial real estate loans.
Total deposits rose 17% to $204.13 million at September 30, 2013 compared with $174.31 million at December 31, 2012 as the bank added new clients and expanded client banking relationships.
The bank's ongoing focus on asset quality was reflected in total non-performing assets (excluding performing troubled debt restructurings) as a percentage of total assets of 1.66% at September 30, 2013, down from 2.06% at December 31, 2012.
Return on average equity (annualized) increased to 8.37% in the third quarter of 2013 compared with 6.98% for the same period last year.
Book value per common share was $8.17 at September 30, 2013, up from $7.79 per share at December 31, 2012 and $7.64 at September 30, 2012.
"We've achieved our 3rd quarter growth goals in loans and deposits," commented Mark Stevenson, president and CEO. "While we continue to add new clients within our specialty markets of nonprofit organizations and educational institutions, we have also seen strong growth in commercial real estate lending and depository services to other small business clients within a variety of industries."
"The combination of strong balance sheet growth, steady asset quality and careful attention to expense management has resulted in a rising book value per share which ultimately builds the value of the company for all of our stakeholders," Stevenson added.
Net interest income was up 6% to $2.09 million in the third quarter of 2013 compared with $1.98 million in the third quarter of 2012, reflecting positive year-over-year growth in interest income driven by increased lending activity.
The bank reported a 3.92% net interest margin in the third quarter of 2013, compared with 4.02% in the previous quarter. Over the last several quarters, the bank's net interest margin (excluding any large one-time events) has fluctuated within a range of 3.90% to 4.20%. Stevenson noted that, despite low interest rates, the bank has been able to maintain this relative stability in margins by consistently deploying deposit growth into loans as opposed to other lower yielding assets.
Deposit fees and other non-interest income was $200,000 in the third quarter 2013, up 6% compared with $188,000 in the third quarter of 2012. Management noted a portion of this growth was attributable to increased client use of fee-generating services including merchant services and remote deposit capture. Total non-interest expense in the third quarter of 2013 was $1.56 million compared with $1.59 million in the third quarter of 2012 and $1.63 million in the second quarter of 2013.
"By increasing our productivity and controlling operating expenses, we improved the bank's efficiency ratio to 68.1% in the third quarter, compared with an efficiency ratio over 70% in the first two quarters of 2013," explained Stevenson. "We anticipate stability in facility and personnel costs, and will continue to focus on leveraging our existing resources."
The bank recognized a provision for loan losses of $144,000 in the third quarter of 2013 as a prudent response to significant loan growth, and continued efforts to resolve its few remaining problem loans.
For the nine months ending September 30, 2013, net interest income was $6.16 million, up 9% compared with $5.64 million for the nine months ending September 30, 2012. As with the annual quarter-over-quarter comparisons, these results reflected loan growth as well as interest expense management, with interest paid on deposits averaging 30 basis points for the year.
Total non-interest expense was virtually unchanged when comparing the nine months ending September 30, 2013 with the same period in 2012.
Total loans at September 30, 2013 were $179.32 million compared with total loans of $159.20 million at December 31, 2012, and $145.08 million at September 30, 2012, reflecting steady growth over the past year.
Total deposits at September 30, 2013 were $204.13 million, up 17% compared with total deposits of $174.31 million at December 31, 2012 and up 13% compared with total deposits of $180.25 million at September 30, 2012.
"Growth in deposits in the third quarter includes a significant increase in the number of bank clients as well as seasonal deposit inflows that are a result of normal tuition cycles experienced by many of the bank's educational clients," said Stevenson.
Reflecting the bank's long-term asset quality improvement, total non-performing assets, including performing troubled debt restructurings, were $4.74 million at September 30, 2013, or 2.06% of total assets compared with $5.40 million or 2.68% of total assets at December 31, 2012.
"We are adequately reserved for potential loan losses given the consistent quality and performance of the loan portfolio and our prudent underwriting practices," said Stevenson.
"Although today's interest rate environment continues to be depressed, and future rate trends are far from certain, a meaningful portion of our loan portfolio is adjustable rate," Stevenson commented. "We are positioned to remain close to current net interest margin levels in a sustained low-rate scenario, with an upside if the yield curve steepens."
The bank remained well-capitalized by accepted regulatory standards as of September 30, 2013, with a tier 1 leverage ratio of 9.0%, a tier 1 capital ratio of 10.5%, and a total risk based capital ratio of 11.7%. In the first half of 2013, the bank redeemed $4.2 million in preferred shares issued under the TARP program and replaced the capital with long-term debt carrying an interest rate of 4.75% and tax-deductible interest payments.
Book value per common share was $8.17 at the end of the third quarter compared with $7.64 at the end of the third quarter of 2012, reflecting consecutive quarter to quarter increases in value throughout 2013. Return on average common equity was 8.37% at September 30, 2013 compared with 6.98% at September 30, 2012. Return on average assets was 0.76% in the third quarter of 2013 compared with 0.77% in the third quarter of 2012.
"We expect to grow at a pace commensurate with recent results," concluded Stevenson. "The Portland-area economy demonstrates particular strength and resilience, and the environment for business is very positive. We look forward to continuing on the path of growth, disciplined expense management, and enhancing shareholder value."
Capital Pacific Bancorp (OTCQB: CPBO) is the parent company of Capital Pacific Bank, a community bank serving the financial needs of businesses, professionals and nonprofit organizations in the Portland market. Backed by a tradition of high touch customer service, the full-service business bank delivers a comprehensive array of products and services to help businesses meet their financial goals, and invests in advanced technology solutions to help businesses save time and money. 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: 23.10.2013 - 17:24 Uhr
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News-ID 308672
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PORTLAND, OR
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