Exhibit 99.1
| CONTACT: |
| B. Grant Yarber |
| President and Chief Executive Officer |
| Phone: (919) 645-3494 |
FOR IMMEDIATE RELEASE | Email: gyarber@capitalbank-nc.com |
Capital Bank Reports 90% Increase in Second Quarter Net Income to $3.1 Million
RALEIGH, N.C. – July 19, 2006 – Capital Bank Corporation (Nasdaq: CBKN), the parent company of Capital Bank, today announced its financial results for the second quarter of 2006. Net income for the quarter ended June 30, 2006 increased 90% to $3.1 million, from $1.6 million in the quarter ended June 30, 2005. Fully diluted earnings per share increased 13% to $0.26 for the quarter ended June 30, 2006 compared to $0.23 for the quarter ended June 30, 2005. For the first six months ended June 30, 2006 and 2005, net income was $5.8 million and $3.2 million, respectively, and fully diluted earnings per share were $0.50 and $0.46, respectively.
During the first quarter of 2006, the Company completed its acquisition of 1st State Bancorp, Inc., the parent company of 1st State Bank, which has had a significant impact on the Company’s financial results for the second quarter of 2006 and thus the comparison of year over year results. The acquisition was accounted for as a purchase business combination and, accordingly, there was no restatement of prior period financial information. In conjunction with this acquisition, the Company issued 4,882,630 shares of common stock, increasing its common shares outstanding to 11.6 million shares at June 30, 2006 compared to 6.9 million shares at December 31, 2005. Shareholders’ equity increased to $157.8 million at June 30, 2006 compared to $83.5 million at December 31, 2005.
Commenting on the Company’s results, B. Grant Yarber, President and CEO, stated, “Our continued focus on core deposit growth, disciplined loan growth and improving credit quality is clearly indicated in our results. Our Smart Checking campaign, launched in the second quarter, is proving to be widely accepted in our markets, with 1,523 new accounts opened in just a few weeks.”
As of June 30, 2006, total assets were $1.36 billion compared to $1.31 billion at March 31, 2006 and $961 million at December 31, 2005. During the quarter ended June 30, 2006, net loans receivable increased $22 million to $952 million compared to $930 million and $659 million at March 31, 2006 and December 31, 2005, respectively. During the quarter ended June 30, 2006, total deposits increased $54 million to $1.0 billion compared to $972 million and $699 million at March 31, 2006 and December 31, 2005, respectively. Core deposits increased $24 million, or 6%, to $447 million at June 30, 2006 from $423 million at March 31, 2006. Approximately $230 million of net loans and $267 million of total deposits were acquired in the 1st State acquisition.
**more**
P. O. Box 18949 • Raleigh, NC 27619-8949 • Phone (919) 645-6400 • Fax (919) 645-6353 • www.capitalbank-nc.com
Net interest income for the quarter ended June 30, 2006 increased $4.4 million, or 62%, compared to the quarter ended June 30, 2005. Net interest income totaled $11.6 million for the quarter ended June 30, 2006 and the net interest margin on a tax equivalent basis was 4.05%. The increase in net interest income was attributable to growth in the loan portfolio, higher interest rates and the infusion of 1st State’s interest-earning assets. Increases in interest rates have improved the yield on earning assets; however, the cost of funds is also increasing due to competitive deposit rates in our markets.
The Company’s allowance for loan losses was $14.0 million, or 1.45% of total loans and 225% of nonperforming loans at June 30, 2006, compared to 1.55% of total loans and 97% of nonperforming loans at June 30, 2005 as the credit quality of the loan portfolio continues to improve. The provision for loan losses for the quarter ended June 30, 2006 was $249,000 compared to a credit in the quarter ended June 30, 2005 of $156,000. Net charge-offs for the quarter ended June 30, 2006 were $523,000, or 0.22% of average loans, compared to charge-offs of $138,000, or 0.09% of average loans, for the quarter ended June 30, 2005. Nonperforming loans were $6.2 million at June 30, 2006 compared to $10.4 million at June 30, 2005. Total past due loans were $9.2 million, or 0.96% of total loans, at June 30, 2006, compared to $9.6 million, or 1.48% of total loans, at June 30, 2005.
The Company’s non-interest income for the quarter ended June 30, 2006 increased $1.0 million to $2.6 million compared to the quarter ended June 30, 2005. This increase is primarily due to a higher volume of transaction accounts, including those acquired in the 1st State transaction, improving levels of deposit service charges, and higher NSF fees, mortgage fees and revenues and brokerage commissions.
Non-interest expenses were $9.3 million for the quarter ended June 30, 2006 compared to $6.5 million for the quarter ended June 30, 2005. The increase in non-interest expenses is primarily due to the consummation of the 1st State transaction as well as higher costs associated with the Company’s growth. During the quarter ended June 30, 2006, the Company completed its successful migration to in-house processing. The Company expects to realize further efficiencies from this in-house processing in the last half of 2006.
Capital Bank Corporation, headquartered in Raleigh, N.C., with approximately $1.4 billion in total assets, offers a broad range of financial services. Capital Bank operates 26 banking offices in Asheville (3), Burlington (4), Cary, Graham (2), Greensboro, Hickory, Mebane, Morrisville, Oxford, Pittsboro, Raleigh (5), Sanford (3), Siler City and Wake Forest. The Company’s website is http://www.capitalbank-nc.com.
Information in this press release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates, and the effects of competition. Additional factors that could cause actual results to differ materially are discussed in Capital Bank Corporation’s filings with the Securities and Exchange Commission, including without limitation its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. Capital Bank Corporation does not undertake a duty to update any forward-looking statements in this press release.
###
Capital Bank Corporation
Summary of Operations
(In thousands except per share data) |
| Three Months |
| Three Months |
| Six Months |
| Six Months |
| ||||
|
|
|
|
| |||||||||
Interest income |
| $ | 21,109 |
| $ | 12,248 |
| $ | 40,779 |
| $ | 23,704 |
|
Interest expense |
|
| 9,501 |
|
| 5,088 |
|
| 17,781 |
|
| 9,638 |
|
|
|
|
|
|
| ||||||||
Net interest income |
|
| 11,608 |
|
| 7,160 |
|
| 22,998 |
|
| 14,066 |
|
Provision (credit) for loan losses |
|
| 249 |
|
| (156 | ) |
| 661 |
|
| (406 | ) |
|
|
|
|
|
| ||||||||
Net interest income after provision for loan losses |
|
| 11,359 |
|
| 7,316 |
|
| 22,337 |
|
| 14,472 |
|
Non-interest income |
|
| 2,612 |
|
| 1,579 |
|
| 4,627 |
|
| 2,919 |
|
Non-interest expense |
|
| 9,341 |
|
| 6,489 |
|
| 18,155 |
|
| 12,639 |
|
|
|
|
|
|
| ||||||||
Income before taxes |
|
| 4,630 |
|
| 2,406 |
|
| 8,809 |
|
| 4,752 |
|
Income tax expense |
|
| 1,579 |
|
| 803 |
|
| 2,995 |
|
| 1,594 |
|
|
|
|
|
|
| ||||||||
Net income |
| $ | 3,051 |
| $ | 1,603 |
| $ | 5,814 |
| $ | 3,158 |
|
|
|
|
|
|
| ||||||||
Income per share - basic |
| $ | 0.26 |
| $ | 0.24 |
| $ | 0.50 |
| $ | 0.47 |
|
|
|
|
|
|
| ||||||||
Income per share - fully diluted |
| $ | 0.26 |
| $ | 0.23 |
| $ | 0.50 |
| $ | 0.46 |
|
|
|
|
|
|
| ||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 11,639 |
|
| 6,731 |
|
| 11,628 |
|
| 6,743 |
|
Fully diluted |
|
| 11,727 |
|
| 6,871 |
|
| 11,716 |
|
| 6,906 |
|
End of Period Balances
|
| 2006 |
| 2005 |
| |||||||||||
|
|
|
| |||||||||||||
(In thousands except per share data) |
| June 30 |
| March 31 |
| December 31 |
| September 30 |
| June 30 |
| |||||
|
|
|
|
|
| |||||||||||
Total assets |
| $ | 1,364,030 |
| $ | 1,308,567 |
| $ | 960,906 |
| $ | 927,077 |
| $ | 917,392 |
|
Investment securities |
|
| 189,669 |
|
| 181,032 |
|
| 161,600 |
|
| 161,389 |
|
| 161,822 |
|
Loans (gross) * |
|
| 965,484 |
|
| 944,325 |
|
| 668,982 |
|
| 646,448 |
|
| 648,765 |
|
Allowance for loan losses |
|
| 14,007 |
|
| 14,209 |
|
| 9,592 |
|
| 9,844 |
|
| 10,075 |
|
Total earning assets |
|
| 1,191,014 |
|
| 1,151,739 |
|
| 843,942 |
|
| 847,296 |
|
| 840,607 |
|
Deposits |
|
| 1,025,949 |
|
| 972,232 |
|
| 698,480 |
|
| 703,183 |
|
| 689,997 |
|
Shareholders' equity |
|
| 157,770 |
|
| 158,095 |
|
| 83,492 |
|
| 82,268 |
|
| 79,499 |
|
Book value per share |
| $ | 13.66 |
| $ | 13.60 |
| $ | 12.18 |
| $ | 12.11 |
| $ | 12.00 |
|
Tangible book value per share |
| $ | 7.86 |
| $ | 7.82 |
| $ | 10.31 |
| $ | 10.21 |
| $ | 10.04 |
|
Average Balances
|
| 2006 |
| 2005 |
| |||||||||||
|
|
|
| |||||||||||||
(In thousands) |
| June 30 |
| March 31 |
| December 31 |
| September 30 |
| June 30 |
| |||||
|
|
|
|
|
| |||||||||||
Total assets |
| $ | 1,315,535 |
| $ | 1,311,145 |
| $ | 932,332 |
| $ | 922,142 |
| $ | 897,178 |
|
Investments (at amortized cost) |
|
| 190,045 |
|
| 194,535 |
|
| 160,928 |
|
| 162,282 |
|
| 160,955 |
|
Loans (gross) * |
|
| 954,420 |
|
| 923,950 |
|
| 653,475 |
|
| 637,743 |
|
| 648,269 |
|
Total earning assets |
|
| 1,164,098 |
|
| 1,158,324 |
|
| 846,780 |
|
| 843,992 |
|
| 826,361 |
|
Deposits |
|
| 990,037 |
|
| 957,693 |
|
| 696,335 |
|
| 697,311 |
|
| 671,307 |
|
Shareholders' equity |
|
| 161,321 |
|
| 159,841 |
|
| 83,380 |
|
| 81,606 |
|
| 78,706 |
|
* Includes loans held for sale. |
Capital Bank Corporation
Quarterly Results
|
| 2006 |
| 2005 |
| |||||||||||
|
|
|
| |||||||||||||
(In thousands except per share data) |
| June 30 |
| March 31 |
| December 31 |
| September 30 |
| June 30 |
| |||||
|
|
|
|
|
| |||||||||||
Interest income |
| $ | 21,109 |
| $ | 19,670 |
| $ | 13,967 |
| $ | 13,078 |
| $ | 12,248 |
|
Interest expense |
|
| 9,501 |
|
| 8,280 |
|
| 6,172 |
|
| 5,649 |
|
| 5,088 |
|
|
|
|
|
|
|
| ||||||||||
Net interest income |
|
| 11,608 |
|
| 11,390 |
|
| 7,795 |
|
| 7,429 |
|
| 7,160 |
|
Provision (credit) for loan losses |
|
| 249 |
|
| 412 |
|
| 38 |
|
| (28 | ) |
| (156 | ) |
|
|
|
|
|
|
| ||||||||||
Net interest income after provision |
|
| 11,359 |
|
| 10,978 |
|
| 7,757 |
|
| 7,457 |
|
| 7,316 |
|
Non-interest income |
|
| 2,612 |
|
| 2,015 |
|
| 2,022 |
|
| 1,790 |
|
| 1,579 |
|
Non-interest expense |
|
| 9,341 |
|
| 8,814 |
|
| 7,171 |
|
| 6,644 |
|
| 6,489 |
|
|
|
|
|
|
|
| ||||||||||
Income before taxes |
|
| 4,630 |
|
| 4,179 |
|
| 2,608 |
|
| 2,603 |
|
| 2,406 |
|
Income tax expense |
|
| 1,579 |
|
| 1,416 |
|
| 801 |
|
| 869 |
|
| 803 |
|
|
|
|
|
|
|
| ||||||||||
Net income |
| $ | 3,051 |
| $ | 2,763 |
| $ | 1,807 |
| $ | 1,734 |
| $ | 1,603 |
|
|
|
|
|
|
|
| ||||||||||
Income per share - basic |
| $ | 0.26 |
| $ | 0.24 |
| $ | 0.26 |
| $ | 0.26 |
| $ | 0.24 |
|
|
|
|
|
|
|
| ||||||||||
Income per share - fully diluted |
| $ | 0.26 |
| $ | 0.24 |
| $ | 0.26 |
| $ | 0.25 |
| $ | 0.23 |
|
|
|
|
|
|
|
| ||||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 11,639 |
|
| 11,617 |
|
| 6,875 |
|
| 6,801 |
|
| 6,731 |
|
Fully diluted |
|
| 11,727 |
|
| 11,704 |
|
| 6,962 |
|
| 6,904 |
|
| 6,871 |
|
Quarterly Net Interest Margin *
|
| 2006 |
| 2005 |
| |||||||||||
|
|
|
| |||||||||||||
|
| June 30 |
| March 31 |
| December 31 |
| September 30 |
| June 30 |
| |||||
|
|
|
|
|
|
| ||||||||||
Yield on earning assets |
|
| 7.34 | % |
| 6.96 | % |
| 6.62 | % |
| 6.22 | % |
| 6.02 | % |
Cost of interest bearing liabilities |
|
| 3.64 | % |
| 3.27 | % |
| 3.26 | % |
| 2.97 | % |
| 2.76 | % |
Net interest spread |
|
| 3.70 | % |
| 3.69 | % |
| 3.36 | % |
| 3.25 | % |
| 3.26 | % |
Net interest margin |
|
| 4.05 | % |
| 4.06 | % |
| 3.73 | % |
| 3.57 | % |
| 3.55 | % |
* Annualized and on a fully taxable equivalent basis |
Nonperforming Assets
|
| 2006 |
| 2005 |
| |||||||||||
|
|
|
| |||||||||||||
(In thousands) |
| June 30 |
| March 31 |
| December 31 |
| September 30 |
| June 30 |
| |||||
|
|
|
|
|
| |||||||||||
Commercial and commercial real estate |
| $ | 3,801 |
| $ | 5,149 |
| $ | 5,040 |
| $ | 3,915 |
| $ | 6,094 |
|
Consumer |
|
| 106 |
|
| 100 |
|
| 176 |
|
| 239 |
|
| 218 |
|
Equity lines |
|
| 418 |
|
| 398 |
|
| 497 |
|
| 592 |
|
| 427 |
|
Construction |
|
| 193 |
|
| 807 |
|
| 737 |
|
| 1,302 |
|
| 1,674 |
|
Mortgage |
|
| 1,695 |
|
| 1,588 |
|
| 1,628 |
|
| 1,711 |
|
| 2,014 |
|
|
|
|
|
|
|
| ||||||||||
Total nonperforming loans |
|
| 6,213 |
|
| 8,042 |
|
| 8,078 |
|
| 7,759 |
|
| 10,427 |
|
Other real estate owned |
|
| 879 | (1) |
| 888 | (1) |
| 771 |
|
| 1,608 |
|
| 1,508 |
|
|
|
|
|
|
|
| ||||||||||
Total nonperforming assets |
| $ | 7,092 |
| $ | 8,930 |
| $ | 8,849 |
| $ | 9,367 |
| $ | 11,935 |
|
|
|
|
|
|
|
|
Nonperforming assets include loans that are 90 days or more past due or in nonaccrual status and other real estate owned. |
(1) Other real estate owned excludes $776 and $1,854 as of June 30, 2006 and March 31, 2006, respectively, related to branch locations that are held for sale. |
Key Ratios
|
| 2006 |
| 2005 |
| |||||||||||
|
|
|
| |||||||||||||
(Dollars in thousands) |
| June 30 |
| March 31 |
| December 31 |
| September 30 |
| June 30 |
| |||||
|
|
|
|
|
| |||||||||||
Past due loans |
| $ | 9,179 |
| $ | 11,678 |
| $ | 7,008 |
| $ | 10,089 |
| $ | 9,576 |
|
Past due loans as a percent of total loans |
|
| 0.96 | % |
| 1.26 | % |
| 1.07 | % |
| 1.58 | % |
| 1.48 | % |
Net charge-offs |
| $ | 523 |
| $ | 3,360 | (2) | $ | 433 |
| $ | 117 |
| $ | 138 |
|
Net charge-offs as a percent of average loans (annualized) |
|
| 0.22 | % |
| 1.45% | (2) |
| 0.27 | % |
| 0.07 | % |
| 0.09 | % |
Allowance for loan losses as a percent of total loans |
|
| 1.45 | % |
| 1.50 | % |
| 1.43 | % |
| 1.52 | % |
| 1.55 | % |
Nonperforming assets as a percent of total assets |
|
| 0.52 | % |
| 0.68 | % |
| 0.92 | % |
| 1.01 | % |
| 1.30 | % |
Allowance for loan losses as a percent of nonperforming loans |
|
| 225 | % |
| 177 | % |
| 119 | % |
| 127 | % |
| 97 | % |
(2) Includes $3.2 million related to one 1st State Bank loan relationship that was fully reserved as of 12/31/05. |
CAPITAL BANK CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
June 30, 2006 and December 31, 2005
(In thousands, except share data) |
| June 30, |
| December 31, |
| Changes |
| % Change |
| ||||
|
|
|
|
| |||||||||
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
| |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning |
| $ | 6,084 |
| $ | 4,603 |
| $ | 1,481 |
|
| 32 | % |
Non-interest-earning |
|
| 48,313 |
|
| 30,544 |
|
| 17,769 |
|
| 58 | % |
Cash held in escrow |
|
| — |
|
| 33,185 |
|
| (33,185 | ) |
| -100 | % |
Federal funds sold and short term investments |
|
| 29,777 |
|
| 8,757 |
|
| 21,020 |
|
| NM |
|
Investment securities - available for sale, at fair value |
|
| 177,725 |
|
| 149,266 |
|
| 28,459 |
|
| 19 | % |
Investment securities - held to maturity, at amortized cost |
|
| 11,944 |
|
| 12,334 |
|
| (390 | ) |
| -3 | % |
Loans-net of unearned income and deferred fees |
|
| 965,484 |
|
| 668,982 |
|
| 296,502 |
|
| 44 | % |
Allowance for loan losses |
|
| (14,007 | ) |
| (9,592 | ) |
| (4,415 | ) |
| 46 | % |
|
|
|
|
|
| ||||||||
Net loans |
|
| 951,477 |
|
| 659,390 |
|
| 292,087 |
|
| 44 | % |
|
|
|
|
|
| ||||||||
Premises and equipment, net |
|
| 23,005 |
|
| 14,868 |
|
| 8,137 |
|
| 55 | % |
Bank owned life insurance |
|
| 20,157 |
|
| 19,857 |
|
| 300 |
|
| 2 | % |
Deposit premium and goodwill, net |
|
| 66,959 |
|
| 12,853 |
|
| 54,106 |
|
| 421 | % |
Deferred tax assets |
|
| 10,436 |
|
| 6,305 |
|
| 4,131 |
|
| 66 | % |
Other assets |
|
| 18,153 |
|
| 8,944 |
|
| 9,209 |
|
| 103 | % |
|
|
|
|
|
| ||||||||
Total assets |
| $ | 1,364,030 |
| $ | 960,906 |
| $ | 403,124 |
|
| 42 | % |
|
|
|
|
|
| ||||||||
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, non-interest bearing |
| $ | 105,667 |
| $ | 77,847 |
| $ | 27,820 |
|
| 36 | % |
Savings, money market accounts and interest checking |
|
| 340,981 |
|
| 237,005 |
|
| 103,976 |
|
| 44 | % |
Time deposits |
|
| 579,301 |
|
| 383,628 |
|
| 195,673 |
|
| 51 | % |
|
|
|
|
|
| ||||||||
Total deposits |
|
| 1,025,949 |
|
| 698,480 |
|
| 327,469 |
|
| 47 | % |
|
|
|
|
|
| ||||||||
Repurchase agreements and federal funds purchased |
|
| 28,004 |
|
| 14,514 |
|
| 13,490 |
|
| 93 | % |
Borrowings |
|
| 107,402 |
|
| 93,173 |
|
| 14,229 |
|
| 15 | % |
Short-term debt |
|
| — |
|
| 30,000 |
|
| (30,000 | ) |
| -100 | % |
Subordinated debentures |
|
| 30,930 |
|
| 30,930 |
|
| — |
|
| 0 | % |
Other liabilities |
|
| 13,975 |
|
| 10,317 |
|
| 3,658 |
|
| 35 | % |
|
|
|
|
|
| ||||||||
Total liabilities |
|
| 1,206,260 |
|
| 877,414 |
|
| 328,846 |
|
| 37 | % |
|
|
|
|
|
| ||||||||
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, no par value; 20,000,000 shares authorized; |
|
|
|
|
|
|
|
|
|
|
|
|
|
11,552,494 and 6,852,156 issued and outstanding as of June 30, 2006 and December 31, 2005, respectively |
|
| 142,426 |
|
| 70,985 |
|
| 71,441 |
|
| 101 | % |
Retained earnings |
|
| 18,605 |
|
| 14,179 |
|
| 4,426 |
|
| 31 | % |
Accumulated other comprehensive income |
|
| (3,261 | ) |
| (1,672 | ) |
| (1,589 | ) |
| n/a |
|
|
|
|
|
|
| ||||||||
Total stockholders’ equity |
|
| 157,770 |
|
| 83,492 |
|
| 74,278 |
|
| 89 | % |
|
|
|
|
|
| ||||||||
Total liabilities and stockholders’ equity |
| $ | 1,364,030 |
| $ | 960,906 |
| $ | 403,124 |
|
| 42 | % |
|
|
|
|
|
|
CAPITAL BANK CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Six Months Ended June 30, 2006 and 2005
(In thousands, except share and per share data) |
| 2006 |
| 2005 |
| Changes |
| % Change |
| ||||
|
|
|
|
| |||||||||
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
| |
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and loan fees |
| $ | 35,664 |
| $ | 20,147 |
| $ | 15,517 |
|
| 77 | % |
Investment securities |
|
| 4,265 |
|
| 3,424 |
|
| 841 |
|
| 25 | % |
Federal funds and other interest income |
|
| 850 |
|
| 133 |
|
| 717 |
|
| 539 | % |
|
|
|
|
|
| ||||||||
Total interest income |
|
| 40,779 |
|
| 23,704 |
|
| 17,075 |
|
| 72 | % |
|
|
|
|
|
| ||||||||
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
| 13,438 |
|
| 6,858 |
|
| 6,580 |
|
| 96 | % |
Borrowings and repurchase agreements |
|
| 4,343 |
|
| 2,780 |
|
| 1,563 |
|
| 56 | % |
|
|
|
|
|
| ||||||||
Total interest expense |
|
| 17,781 |
|
| 9,638 |
|
| 8,143 |
|
| 84 | % |
|
|
|
|
|
| ||||||||
Net interest income |
|
| 22,998 |
|
| 14,066 |
|
| 8,932 |
|
| 64 | % |
Provision for loan losses |
|
| 661 |
|
| (406 | ) |
| 1,067 |
|
| n/a |
|
|
|
|
|
|
| ||||||||
Net interest income after provision for loan losses |
|
| 22,337 |
|
| 14,472 |
|
| 7,865 |
|
| 54 | % |
|
|
|
|
|
| ||||||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit service charges and other fees |
|
| 2,026 |
|
| 1,371 |
|
| 655 |
|
| 48 | % |
Mortgage fees and revenues |
|
| 1,018 |
|
| 658 |
|
| 360 |
|
| 55 | % |
Net gain on sale of securities |
|
| — |
|
| 7 |
|
| (7 | ) |
| -100 | % |
Bank owned life insurance |
|
| 329 |
|
| 224 |
|
| 105 |
|
| 47 | % |
Other noninterest income |
|
| 1,254 |
|
| 659 |
|
| 595 |
|
| 90 | % |
|
|
|
|
|
| ||||||||
Total noninterest income |
|
| 4,627 |
|
| 2,919 |
|
| 1,708 |
|
| 59 | % |
|
|
|
|
|
| ||||||||
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
| 9,393 |
|
| 6,628 |
|
| 2,765 |
|
| 42 | % |
Occupancy |
|
| 1,716 |
|
| 1,240 |
|
| 476 |
|
| 38 | % |
Furniture and equipment |
|
| 1,054 |
|
| 737 |
|
| 317 |
|
| 43 | % |
Director fees |
|
| 659 |
|
| 395 |
|
| 264 |
|
| 67 | % |
Data processing |
|
| 600 |
|
| 629 |
|
| (29 | ) |
| -5 | % |
Advertising |
|
| 579 |
|
| 379 |
|
| 200 |
|
| 53 | % |
Amortization of deposit premiums |
|
| 686 |
|
| 107 |
|
| 579 |
|
| 541 | % |
Professional fees |
|
| 566 |
|
| 532 |
|
| 34 |
|
| 6 | % |
Telecommunications |
|
| 385 |
|
| 283 |
|
| 102 |
|
| 36 | % |
Other expenses |
|
| 2,517 |
|
| 1,709 |
|
| 808 |
|
| 47 | % |
|
|
|
|
|
| ||||||||
Total noninterest expenses |
|
| 18,155 |
|
| 12,639 |
|
| 5,516 |
|
| 44 | % |
|
|
|
|
|
| ||||||||
Net income before tax expense |
|
| 8,809 |
|
| 4,752 |
|
| 4,057 |
|
| 85 | % |
Income tax expense |
|
| 2,995 |
|
| 1,594 |
|
| 1,401 |
|
| 88 | % |
|
|
|
|
|
| ||||||||
Net income |
| $ | 5,814 |
| $ | 3,158 |
| $ | 2,656 |
|
| 84 | % |
|
|
|
|
|
| ||||||||
Earnings per share - basic |
| $ | 0.50 |
| $ | 0.47 |
| $ | 0.03 |
|
| 6 | % |
|
|
|
|
|
| ||||||||
Earnings per share - diluted |
| $ | 0.50 |
| $ | 0.46 |
| $ | 0.04 |
|
| 9 | % |
|
|
|
|
|
| ||||||||
Weighted Average Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 11,628,015 |
|
| 6,742,712 |
|
| 4,885,303 |
|
| 72 | % |
|
|
|
|
|
| ||||||||
Fully Diluted |
|
| 11,715,510 |
|
| 6,906,233 |
|
| 4,809,277 |
|
| 70 | % |
|
|
|
|
|
|
CAPITAL BANK CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended June 30, 2006 and 2005
(In thousands, except share and per share data) |
| 2006 |
| 2005 |
| Changes |
| % Change |
| ||||
|
|
|
|
| |||||||||
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and loan fees |
| $ | 18,646 |
| $ | 10,405 |
| $ | 8,241 |
|
| 79 | % |
Investment securities |
|
| 2,155 |
|
| 1,727 |
|
| 428 |
|
| 25 | % |
Federal funds and other interest income |
|
| 308 |
|
| 116 |
|
| 192 |
|
| 166 | % |
|
|
|
|
|
| ||||||||
Total interest income |
|
| 21,109 |
|
| 12,248 |
|
| 8,861 |
|
| 72 | % |
|
|
|
|
|
| ||||||||
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
| 7,328 |
|
| 3,676 |
|
| 3,652 |
|
| 99 | % |
Borrowings and repurchase agreements |
|
| 2,173 |
|
| 1,412 |
|
| 761 |
|
| 54 | % |
|
|
|
|
|
| ||||||||
Total interest expense |
|
| 9,501 |
|
| 5,088 |
|
| 4,413 |
|
| 87 | % |
|
|
|
|
|
| ||||||||
Net interest income |
|
| 11,608 |
|
| 7,160 |
|
| 4,448 |
|
| 62 | % |
Provision for loan losses |
|
| 249 |
|
| (156 | ) |
| 405 |
|
| n/a |
|
|
|
|
|
|
| ||||||||
Net interest income after provision for loan losses |
|
| 11,359 |
|
| 7,316 |
|
| 4,043 |
|
| 55 | % |
|
|
|
|
|
| ||||||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and other fees |
|
| 1,061 |
|
| 714 |
|
| 347 |
|
| 49 | % |
Mortgage fees and revenues |
|
| 654 |
|
| 386 |
|
| 268 |
|
| 69 | % |
Net gain on sale of securities |
|
| — |
|
| 1 |
|
| (1 | ) |
| -100 | % |
Bank owned life insurance |
|
| 160 |
|
| 123 |
|
| 37 |
|
| 30 | % |
Other noninterest income |
|
| 737 |
|
| 355 |
|
| 382 |
|
| 108 | % |
|
|
|
|
|
| ||||||||
Total noninterest income |
|
| 2,612 |
|
| 1,579 |
|
| 1,033 |
|
| 65 | % |
|
|
|
|
|
| ||||||||
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
| 4,851 |
|
| 3,479 |
|
| 1,372 |
|
| 39 | % |
Occupancy |
|
| 938 |
|
| 626 |
|
| 312 |
|
| 50 | % |
Furniture and equipment |
|
| 562 |
|
| 370 |
|
| 192 |
|
| 52 | % |
Director fees |
|
| 283 |
|
| 347 |
|
| (64 | ) |
| -18 | % |
Data processing |
|
| 111 |
|
| 318 |
|
| (207 | ) |
| -65 | % |
Advertising |
|
| 324 |
|
| 163 |
|
| 161 |
|
| 99 | % |
Amortization of deposit premiums |
|
| 343 |
|
| 53 |
|
| 290 |
|
| 547 | % |
Professional fees |
|
| 354 |
|
| 210 |
|
| 144 |
|
| 69 | % |
Telecommunications |
|
| 209 |
|
| 143 |
|
| 66 |
|
| 46 | % |
Other expenses |
|
| 1,366 |
|
| 780 |
|
| 586 |
|
| 75 | % |
|
|
|
|
|
| ||||||||
Total noninterest expenses |
|
| 9,341 |
|
| 6,489 |
|
| 2,852 |
|
| 44 | % |
|
|
|
|
|
| ||||||||
Net income before tax expense |
|
| 4,630 |
|
| 2,406 |
|
| 2,224 |
|
| 92 | % |
Income tax expense |
|
| 1,579 |
|
| 803 |
|
| 776 |
|
| 97 | % |
|
|
|
|
|
| ||||||||
Net income |
| $ | 3,051 |
| $ | 1,603 |
| $ | 1,448 |
|
| 90 | % |
|
|
|
|
|
| ||||||||
Earnings per share - basic |
| $ | 0.26 |
| $ | 0.24 |
| $ | 0.02 |
|
| 8 | % |
|
|
|
|
|
| ||||||||
Earnings per share - diluted |
| $ | 0.26 |
| $ | 0.23 |
| $ | 0.03 |
|
| 13 | % |
|
|
|
|
|
| ||||||||
Weighted Average Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 11,639,014 |
|
| 6,730,979 |
|
| 4,908,035 |
|
| 73 | % |
|
|
|
|
|
| ||||||||
Fully Diluted |
|
| 11,726,584 |
|
| 6,870,821 |
|
| 4,855,763 |
|
| 71 | % |
|
|
|
|
|
|