Strong Loan Growth Continues to Support Core Earnings

SAN JUAN CAPISTRANO, Calif., Aug. 2, 2016 /PRNewswire/ -- Capital Bank CBJC announced the results of its second quarter operations, which ended June 30, 2016.  Strong loan growth and stable profitability continued during the second quarter. Gross Loans increased to $217 million, reflecting 19% year-over-year growth.  At the same time, asset quality remained exceptional as evidenced by extremely low levels of problem assets. Total Deposits increased to $241 million, representing 6% year-over-year growth.  Net Income was $730,000 for the quarter, and $1.42 million year-to-date, reflecting a strong return on assets ratio of 1.06%.

J.M. "Mike" Justice, Jr., President & Chief Executive Officer stated, "We continue to experience positive core growth in both Orange and San Diego counties."  He added, "I am very pleased with our success to date and all of us at Capital Bank remain laser-focused on providing exceptional customer service to achieve even greater success in the future.  We excitedly look forward to expanding our customer base throughout all the communities we serve.  Our rock-solid balance sheet and strong capitalization will allow us to achieve this expansion while continuing to provide our shareholders with a strong return on their investment as evidenced by our return on equity of over 10%."  Mr. Justice concluded, "The future is bright for Capital Bank."

John R. McGill, Senior Executive Vice President & Chief Operating Officer added, "We are very proud of our outstanding team of community bankers who share two simple goals:  deliver the highest quality customer service and provide our customers with innovative banking solutions.  In my view, these goals are the keys to our bank's past and future success."

Capital Bank holds the prestigious Super Premier Performance Award from Findley Reports on Financial Institutions as well as the 5 Star Rating of Excellence from the national independent bank rating firm of Bauer Financial.

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
If you are interested in an investment in Capital Bank, please consult your stock broker.

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.

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SOURCE Capital Bank