Capital Pacific Bancorp Reports Financial Results in Third Quarter of 2011
(firmenpresse) - PORTLAND, OR -- (Marketwire) -- 10/24/11 -- Capital Pacific Bancorp (OTCQB: CPBO) (OTCBB: CPBO) ("the Company") reported net income of $75,000 for the three months ended September 30, 2011. Including the effect of preferred stock dividends, the Company reported net income to common shareholders of $10,000. For the nine months ended September 30, 2011, the Company reported net income of $428,000, or $233,000 after considering the effect of preferred stock dividends.
"The third quarter of 2011 was a rewarding turning point for the Company," said Mark Stevenson, President and CEO of Capital Pacific Bancorp. "We improved asset quality significantly and saw a sharp decline in non-performing assets." The change in asset quality is primarily the result of the sale of non-performing assets totaling $3.2 million. As of September 30, 2011, non-performing assets declined dramatically to 1.76% of total assets as compared to 3.95% in the preceding quarter and 5.81% as of the end of 2010.
Average quarterly client deposits grew to $166.9 million in the third quarter of 2011, an increase of approximately $12.4 million or 8% when compared to the prior quarter. Actual client deposits closed the quarter at $170.2 million.
"We have had two consecutive quarters of substantial growth in average client deposits," said Stevenson. "The increase is a combination of rising balances with existing business clients and new clients. While the banking system itself is awash with new consumer deposits fleeing from riskier investment alternatives, we would characterize our growth to be very consistent with our niche-oriented development strategy."
Loans totaled $131.7 million as of September 30, 2011, essentially unchanged from the prior quarter. Certain segments of the portfolio have been stronger than others, such as commercial real estate balances which are up 18% this year. "With economic activity being suppressed under the continued weight of high unemployment, opportunities for quality new loans are difficult to find," said Stevenson. "To address this, we have recently strengthened our outreach into the community by adding three experienced and highly regarded commercial bankers to our team who complement our business bank focus. Combined with our existing staff, we are poised to grow both loans and deposits."
At September 30, 2011, non-performing assets declined by $3.8 million when compared to the prior quarter and closed the quarter at $3.5 million, or 1.76% of total assets. The composition of non-performing assets is as follows:
During the quarter, the Company charged off $89,000 in loans and received $76,000 in payments on loans on non-accrual status. There were no additions to the list of loans on non-accrual status. Sixty-one percent of the loans on non-accrual status at September 30, 2011 are fully 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 70% in the third quarter of 2011. The decline is due to the sale of four properties with a carrying value of $3.2 million, resulting in gains on sales of approximately $30,000. The Company also recognized $456,000 in property value impairments reflecting persistent weakness in property valuations, particularly land held for development.
Non-performing assets as of September 30, 2011 by sector were as follows:
At September 30, 2011, the Company's reserve for loan losses totaled $2.8 million, or 2.16% of total loans, compared to $2.9 million, or 2.19% of total loans, as of June 30, 2011. Loan loss provision expense of $20,000 was recognized in the third quarter of 2011. For the year, the Company recognized $143,000 in loan loss provision expense.
"Non-performing loans as a percentage of total loans is now less than 2%, in stark contrast to this time last year when non-performing loans as a percentage of total loans was 5.6%," said Stevenson. "In 2011, newly arising problems have been infrequent and loan quality has been trending up over the last several quarters."
At September 30, 2011, loans past due 30-89 days declined to $904,000. Of that total, one loan for $811,000 is 90% guaranteed by the Small Business Administration.
"Past due loans will clearly be an early indicator of how this extended recession is going to impact borrowers," said Stevenson. "While pleased with the improvement in our own asset quality, we are actively monitoring the performance of our own borrowers in the event of a continued decline in economic conditions."
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 September 30, 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) increased 7% in the three months ended September 30, 2011 when compared to the prior quarter, the result of asset growth and the continued decline in the interest rates paid on deposits.
The net interest margin which measures the net yield on earning assets totaled 4.24% in the third quarter of 2011, down from 4.37% when compared to the three months ending June 30, 2011. Growth in cash and investments as a percentage of total assets contributed to the decline, both of which carry lower average returns than loans.
"Today's low interest rates, flat yield curve and aggressive price competition for loans are compressing interest margins within the industry," said Stevenson. "While we believe that the low cost structure of our deposits and our strong client relationships will help us navigate the current environment, we do expect continued pressure on the net interest margin going forward."
Non-interest expense in the second quarter of 2011 totaled $2.0 million, up $162,000 when compared to the preceding quarter. The change quarter over quarter is principally due to higher impairments on other real estate owned and other workout related expenses.
Capital Pacific Bancorp (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.
(1) Includes the dilutive effect of preferred stock dividends accrued during the period
(2) Tax exempt interest has been adjusted to a tax equivalent basis at a 34% tax rate. The amount of such adjustment was an addition to recorded interest income of approximately $79,800 and $67,900 for the three months ended September 30, 2011 and 2010, respectively
(3) Calculated by dividing non-interest expense by the sum of net interest income and non-interest income.
(4) Excludes loans that are no longer accruing interest
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Mark Stevenson
President and CEO
Felice Belfiore
CFO
(503) 796-0100
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Datum: 24.10.2011 - 17:41 Uhr
Sprache: Deutsch
News-ID 79479
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PORTLAND, OR
Kategorie:
Retail Banking
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