PORTLAND, OR — (Marketwire) — 07/21/11 — Capital Pacific Bancorp (OTCBB: CPBO) (OTCQB: CPBO) (“the Company”) reported net income of $158,000 for the three months
ended June 30, 2011. Including the effect of preferred stock dividends, the
Company reported net income to common shareholders of $93,000, or $0.05 per
diluted share for the same period.
“We are encouraged by our resilient performance and the positive momentum
we-re seeing in the second quarter of 2011,” said Mark Stevenson, CEO and
President of Capital Pacific Bancorp. “Asset quality continues to improve,
the result of our ongoing drive to reduce our non-performing assets.
Progress is slow, but steady, as we continue to work through challenging
economic conditions.”
Deposits
Average quarterly client deposits increased to $154.5 million in the second
quarter of 2011, an increase of approximately $11 million or 8% when
compared to the prior quarter. Actual client deposits closed the quarter at
$160.3 million.
“We are pleased with client deposit growth this quarter, which signals a
broader base of core clients in our market,” said Stevenson.
Loans
Loans totaled $132.0 million as of June 30, 2011, an increase of $4.2
million, or 3% when compared to balances as of March 31, 2011. “Total loans
have increased modestly for the second quarter in a row. For the year,
loans have increased $7.2 million, or 6%,” said Stevenson. “We really like
the profile of our new loan clients, representing durable businesses and
organizations that are contributing to our local economy.”
Non-performing assets
At June 30, 2011, non-performing assets declined by $540,000 when compared
to the prior quarter and closed the quarter at $7.3 million, or 3.95% of
total assets. The composition of non-performing assets is as follows:
Non-performing assets as of June 30, 2011 by sector were as follows:
Credit quality
At June 30, 2011, the Company-s reserve for loan losses totaled $2.9
million, or 2.19% of total loans, compared to $3.0 million, or 2.38% of
total loans, as of March 31, 2011. No loan loss provision expense was
recognized in the second quarter of 2011. In the first quarter of 2011, the
Company recognized $123,000 in loan loss provision expense.
“Non-performing loans as a percentage of total loans is less than 2%, in
stark contrast to this time last year when non-performing loans as a
percentage of total loans was 4.9%,” said Stevenson. “Again this is a
direct result of our steadfast effort to improve credit quality and reduce
non-performing assets.”
At June 30, 2011, loans past due 30-89 days increased to $1.8 million. Of
that total, one loan for $1.4 million is 90% guaranteed by the Small
Business Administration. A second loan for $370,000 is a loan originated
under the Small Business Administration-s 504 program, and was paid current
in July 2011.
Capital adequacy
The Company continues to be classified as well-capitalized by regulatory
standards. The Company-s total risk-based capital ratio is estimated at
14.3% at June 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
Net interest income (interest income less interest expense) increased 5% in
the three months ended June 30, 2011 when compared to the prior quarter,
the result of higher average loan balances. The net interest margin which
measures the net yield on earning assets totaled 4.41% in the second
quarter of 2011, virtually unchanged when compared to the three months
ending March 31, 2011 and up from 3.84% for the same quarter in 2010. Year
over year, the improvement is the result of fewer non-performing loans and
the continued decline in the interest paid on deposits.
Non-interest expense
Non-interest expense in the second quarter of 2011 totaled $1.8 million, up
$401,000 when compared to the preceding quarter. Excluding one-time net
losses on sales of other real estate owned, non-interest expense increased
$267,000. The change quarter over quarter is principally due to impairments
on other real estate owned.
About Capital Pacific Bancorp
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
.
Forward-looking statements
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.
Contact:
Mark Stevenson
President and CEO
Felice Belfiore
CFO
(503) 796-0100