Capital Pacific Bancorp Reports Fourth Quarter, 2014 Financial Results
Loan Growth, Strong Asset Quality Results in 22% Year-Over-Year Net Income Growth
(firmenpresse) - PORTLAND, OR -- (Marketwired) -- 01/22/15 -- Capital Pacific Bancorp (OTCQB: CPBO) (the Company) today reported financial results for the three months and twelve months ended December 31, 2014. The Company is the parent company of Capital Pacific Bank (the Bank), a business bank focused on serving greater Portland area businesses, nonprofit organizations, private schools and companies committed to sustainable business practices.
On November 19, 2014, the Company announced that it had entered into a definitive agreement to be acquired by Pacific Continental Corporation. The transaction is expected to close in the first quarter of 2015, subject to required regulatory approvals and approval by the shareholders of the Company.
Highlights
Net income to common shareholders in the fourth quarter of 2014 was $488,000 or $0.18 per common diluted share, down 25% compared with $595,000 or $0.23 per common diluted share in the fourth quarter of 2013.
Excluding merger related expenses, net income to common shareholders in the fourth quarter of 2014 was $726,000, or $0.27 per common diluted share, up 19% as compared to the same quarter last year. The growth was the result of a 12% increase in net interest income and stable operating costs as compared to the same quarter last year.
For the year, net income to common shareholders totaled $2.2 million, or $0.84 per common diluted share, up 22% compared with the prior year results of $1.8 million, or $0.69 per common diluted share. Excluding merger related expenses, net income to common shareholders totaled $2,504,000, or $0.96 per common diluted share, an increase of 39%.
Total loans were $202.7 million at December 31, 2014, an 8% increase from December 31, 2013.
Total client deposits, more than half of which are non-interest bearing or low-interest bearing demand deposits, increased 8% to $223.9 million at December 31, 2014 compared with $207.0 million at December 31, 2013.
Asset quality ratios remained strong, including a decline in the ratio of non-performing assets to total assets to 0.75% at the close of the fourth quarter of 2014.
The Company was recognized as one of Oregon''s 100 best companies to work for in Oregon by Oregon Business magazine.
"Our achievements in 2014 are significant, and are the result of our ability to provide banking solutions that reflect our core values and are aligned with the needs of our business community," said Mark Stevenson, President and CEO. "Our financial performance includes growth in earnings and a healthy balance sheet, both of which contribute to long-term shareholder value."
Net interest income
Results for the three and twelve months ending December 31, 2014 reflected double-digit growth year-over-year in net interest income. In the fourth quarter of 2014, net interest income was $2.5 million, up 12% from $2.2 million in the fourth quarter of 2013. For the year, net interest income was $9.3 million, an 11% increase compared with $8.4 million in 2013. Growth in net interest income is a result of new business with a growing number of companies in our market.
Non-interest income
Revenue from deposit fees and other non-interest income was $233,000 in the three months ending December 31, 2014, up 4% from the same period last year. For the year, deposit fees and other non-interest income totaled $906,000, up 13% compared with the same period last year, reflecting increases in client account fees and earnings on bank owned life insurance.
Non-interest expense
Total non-interest expense in the three months ending December 31, 2014 was $1.8 million compared with $1.6 million in the fourth quarter of 2013. The increase was the result of $268,000 in merger related expenses. Excluding merger related expenses, non-interest expense was down 2% compared to the same period last year. Non-interest expense for the year 2014 was $6.8 million, up 6% compared with the same period last year. Excluding merger related expenses, non-interest expense totaled $6.5 million, up 1% compared to the same period last year.
Net interest margin
The Company''s net interest margin was 4.15% for the quarter ending December 31, 2014 compared to the immediately prior quarter''s net interest margin of 4.00%. The increase was the result of unusually high one-time loan related fees. Excluding the one-time fees, the margin was 4.05%, consistent with historical results, reflecting a stable rate environment and year-over-year increases in the loan portfolio.
Loans
Total loans at December 31, 2014 were $202.7 million, up 8% compared with $188.0 million at December 31, 2013. Expansion in the Company''s loan portfolio was due to growth in owner-occupied commercial real estate loans, equipment financing, acquisition financing and working capital lines of credit, all part of the Bank''s commercial lending segment.
"The stronger economic climate has furthered our loan growth, evident by additional credit needs of our existing clients that are experiencing growth themselves," observed Stevenson. "Our ability to customize solutions that integrate within the overall business of our clients is also driving results."
Deposits
Total client deposits at December 31, 2014 were $223.9 million, up from $207.0 million at December 31, 2013, up 8% for the year. "Our deposit profile is that of a true business bank, with over 59% of client deposits in demand checking accounts and an emphasis in treasury related services," explained Stevenson.
Asset Quality
Asset quality is strong, with total non-performing assets of only $1.9 million at December 31, 2014 compared with $3.0 million at December 31, 2013. The ratio of total non-performing assets to total assets was 0.75% in the current quarter compared with 1.27% at the end of 2013. Non-performing assets, including performing troubled debt restructurings, were $2.4 million or 0.94% of total assets at December 31, 2014. The Bank''s loan loss reserve as a percentage of loans was 1.40% at December 31, 2014, and more than 300% of non-performing loans.
Capital
The Bank remained well-capitalized by accepted regulatory standards as of December 31, 2014, with a tier 1 leverage ratio of 10.3%, a tier 1 capital ratio of 12.4%, and a total risk based capital ratio of 13.6%.
"We closed out 2014 on a high note, with a very positive outlook about our role in the market, the influence we''ve had upon all of our stakeholders, and our growth prospects in the future," Stevenson concluded. "On behalf of the Board of Directors and our staff, we wish to thank our clients and our community, with an ongoing promise to maintain our focus on building value in the future."
About Capital Pacific Bancorp
Capital Pacific Bancorp (OTCQB: CPBO) is the parent company of Capital Pacific Bank (), which provides comprehensive banking expertise to businesses, professionals and nonprofit organizations. Backed by a tradition of high touch customer service, Capital Pacific Bank delivers a full array of products and services and advanced technology solutions to help businesses meet their financial goals. Capital Pacific Bank is a Certified B Corporation, one of six Certified B Corporation banks in the U.S., reflecting the Company''s commitment to meeting rigorous standards for environmental and social responsibility, financial and operational transparency and performance, and community involvement. The Bank serves more than 180 clients in the nonprofit, education and sustainable focused business sectors, which collectively represent approximately 50% of the Bank''s total deposits. Capital Pacific Bank itself has a longstanding commitment to sustainability, having received numerous awards and recognition for its social responsibility and sustainable business practices.
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
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Datum: 22.01.2015 - 12:12 Uhr
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