Capital Bank Named Top Performing Community Bank by American Banker

SAN JUAN CAPISTRANO, Calif.--(BUSINESS WIRE)--

Capital Bank CBJC today announced it has been recognized by the American Banker as one of the top 200 Best Performing Community banks in the nation ranking number 91 overall based on a three year Average Return on Equity. For all banks with less than $500 million in assets in the State of California, American Banker ranked Capital Bank the #1 Best Performing Bank in the State. For detailed information please visit: http://www.americanbanker.com/news/community-banking/what-the-top-200-publicly-traded-community-banks-do-better-than-peers-1073985-1.html#.

Capital Bank further announced results of operations through the second quarter of 2015 reflect ongoing strong deposit and asset growth, as well as stable earnings despite the absorption of significant expenses for expansion into San Diego County. Total deposits expanded $62.3 million or 38% to $227.3 million from a year ago fueled by growth in lower cost core deposits while assets grew 27% to $263.3 million. The Bank opened its San Diego County Banking Center located at 277 North El Camino Real in the City of Encinitas this past quarter. Despite the significant expense associated with this expansion, the Bank was successful in maintaining stable and consistent profitability reporting pre-tax income of $2.4 million. Following a $1 million tax provision, net income totaled $1.4 million, essentially consistent with the same period last year.

J.M. "Mike" Justice Jr., President & Chief Executive Officer, stated, "We are honored by the recognition of our Bank's strong Return on Investment to our shareholders by the American Banker. From day-one we have been committed to creating exceptional long term shareholder value by providing innovative solutions and exceptional service to our customers. Our consistent and compounding strong growth in core deposits and assets is a result of our commitment to providing our customers with the outstanding service they expect and deserve. Despite our strong asset growth we have maintained our conservative underwriting standards as evidenced by our exceptional asset quality and continued improvement in recurring net interest income. At the same time, we have been able to maintain a highly desirable and enviable Efficiency Ratio of approximately 57%. This approach has produced a dependable and ongoing income stream which has resulted in a Return on Average Assets (ROAA) of 1.13% and Return on Equity (ROE) of 11.49%, significantly above that of our peer banks. Our continued strong growth in assets, deposits, loans and net interest income combined with the stability of our earnings, despite significant expansion costs, is a testament to the hard work and dedication of our entire team. The prospects for further growth, expansion and profitability are bright for our Bank." Mr. Justice continued, "Our capital position continues to be strong with total risk based capital of over 14%, well above the regulatory standard of 10% to be considered well capitalized. In addition to our recognition by American Banker noted above, our overall performance continues to garner industry accolades and was recognized as the Number One Overall Best Performing Bank in the Nation for 2014 by Bankerscaddy.com for the second consecutive year, one of the Top 20-Best Performing Bank in the Nation for 2014 for all banks with less than $500 million in assets by SNL Financial and the 7th Healthiest Bank in America by DepositAccounts.com for that year. In addition, the Bank was once again awarded the prestigious Super Premier Performance Award from the renowned Findley Reports on Financial Institutions and continues to carry the 5 Star Rating of Excellence by the national independent bank rating firm of Bauer Financial."

John R. McGill, Senior Executive Vice President & Chief Operating Officer, stated, "Our opportunities for growth, profitability and market expansion continue to be strong. Our San Diego County Banking Center in the City of Encinitas, led by Senior Vice President & Branch Manager Mary Purviance and San Diego County Regional Manager & Senior Vice President Joe Simmons, have produced meaningful growth in loans and deposits in the short time this office has been open. We are confident our presence in, and commitment to, the San Diego County market will contribute positively to the Capital Bank franchise for years to come."

McGill concluded, "Our success in achieving solid profitability, building a quality balance sheet, and leveraging our strong capital base is attributable to the hard work and dedication of our talented team of banking professionals, the support of committed directors and shareholders, as well as a broadening base of loyal customers and business partners. We are thankful for their ongoing confidence and support."

Capital Bank is dedicated to being known as the Premier Business and Professional Bank in the markets we serve by providing innovative financial solutions tailored to the needs of our customers while exceeding expectations and producing superior shareholder value that become solutions recognized for…"Banking Outside the Box".

For Additional Information visit our website at: www.mycapitalbank.com

Stock Symbol: OTCQB:CBJC
For information regarding the purchase or sale of Capital Bank's stock, contact:
Steve Arrigo, Senior Vice President, (949) 644-1890
Crowell Weedon & Company a division of D.A. Davidson & Co.
or
Doug Deubel, Vice President, (888) 734-0540
Raymond James & Associates

American Banker: www.americanbanker.com/community-banking/what-the-top-200-publicly-traded-community-banks-do-better-than-peers
SNL Financial: http://www.snl.com
DepositAccounts.com: www.depositaccounts.com/banks/capital-bank-ca.html#health
The Findley Reports: http://www.findley-reports.com
Bauer Financial: http://www.bauerfinancial.com

Information contained herein may contain certain forward-looking statements that are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact the Bank's earnings in future periods. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "intend," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, real estate values, and competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory and technological factors affecting the Bank's operations, pricing, products and services. The Bank undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

CAPITAL BANK
SELECTED UNAUDITED FINANCIAL DATA
(All figures in thousands) as of:
Balance Sheet		6/30/15		6/30/14		Change %
Total Assets		$263,321		$207,930		27%
Total Deposits		$227,254		$164,925		38%
Gross Loans		$181,742		$172,446		5%
Total Shareholders' Equity		$24,845		$21,755		14%

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