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Capital Bank (CBJC.OB) Posts First Quarterly Profit in Operating History

Capital Bank today posted its third quarter 2010 operations results, reporting full-quarter profitability. The company nearly hit the $100 million asset barrier in 30 months of operations.

“We have remained focused on the achievement of our business plan and the sprint for quality asset growth it contemplated to attain the economies of scale necessary to drive profitability. I am exceptionally pleased to report that we have achieved that goal as evidenced by our performance this past quarter. The prospects for ongoing growth and profitability are bright for our Bank, despite the ongoing challenges in the economy,” J.M. “Mike” Justice Jr., president and CEO of the company stated in the press release.

The bank continued solid deposit, asset and loan growth, with deposits more than doubling to $79.9 million, up 112 percent from the same period last year.

Assets increased 104 percent to $99.1 million, barely falling short of the $100 million asset barrier; loans climbed 57 percent to $67.5 million.

The bank posted a net year-to-date loss of $(538,000), more than $404,000 of which it attributes to non-cash charges for stock option expense and prudent loan loss reserves. Net income for the quarter increased $518,000 over last year’s third quarter loss of $(461,000), reflecting the bank’s first ever quarterly profit of $57,000.

“The strong growth of our quality balance sheet combined with our prospects for continued profitability, overall positive earnings trend, strong capital base and growing market share have been noted by the capital markets; we are very pleased with our stock that continues to out-perform our peers,” Justice stated.

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