SOURCE: Capital Pacific Bank

July 19, 2005 11:00 ET

Capital Pacific Bank Has Strong 2nd Quarter

PORTLAND, OR -- (MARKET WIRE) -- July 19, 2005 -- Capital Pacific Bank (OTC BB: CPFB) reported solid performance for the quarter ended June 30, 2005. Deposit growth was singularly strong, increasing $9.8 million, reflecting a 28 percent increase for the quarter. Total assets grew to $56.9 million, a 55 percent increase on an annualized basis since the beginning of the year.

Over $12 million in new loan originations resulted in net loan growth for the quarter of $4.9 million after loan maturities, participations sold and pay downs of existing loans.

The bank reported a decline in net loss to just $76,000, demonstrating steady progress toward profitability as Capital Pacific approaches its second full year of operation.

Headquartered in the Fox Tower in downtown Portland, Capital Pacific Bank serves businesses, professionals and high-net worth individuals. The bank offers a full array of bank products and services, delivered in a highly personalized manner through experienced client service officers and the latest technology. For more information, visit www.capitalpacificbank.com.


(unaudited and dollars in thousands, except per share data)

Condensed Balance Sheets     As of June 30, 2005   As of December 31, 2004
--------------------------------------------------------------------------
Cash and due from banks      $          1,076       $           425
Investments                             6,259                 2,918

Loans:
Commercial                             32,867                25,676
Real estate                            15,060                14,904
Other                                   1,600                   566
                             -------------------    ----------------------
  Total loans                          49,527                41,146
Loan loss reserve                        (630)                 (514)
                             -------------------    ----------------------
  Total loans,
   net of loan loss reserve            48,897                 40,632
Other assets                              638                    582
                             -------------------    ----------------------
  Total assets               $         56,870       $         44,557
                             ===================    ======================

Deposits:
Non interest-bearing demand  $          8,529       $          8,070
Interest-bearing demand                19,156                 13,750
Certificates of deposit                16,415                  7,244
                             -------------------    ----------------------
  Total deposits                       44,100                 29,064

Other liabilities                         703                  3,215
Shareholders' equity                   12,067                 12,278
                             -------------------    ----------------------
  Total liabilities and
   shareholders' equity      $         56,870       $         44,557
                             ===================    ======================

Book value per share         $           7.99       $           8.13
                             ===================    ======================
Weighted average shares
 outstanding                        1,509,845              1,509,845
                             ===================    ======================




Condensed Statements         For the three months   For the three months
of Operations                ending June 30, 2005   ending June 30, 2004
--------------------------------------------------------------------------
Interest income              $            889       $            280
Interest expense                          249                     33
                             -------------------    ----------------------
  Net interest income                     640                    247
Provision for loan losses                  43                     75
                             -------------------    ----------------------
  Net interest income,
   net of provision for
   loan losses                            597                    172
Deposit fees and other
 non-interest income                       36                     22
Income associated with
 the sale of loans                         58                     33
Non-interest expense                      767                    583
                             -------------------    ----------------------
  Net loss before tax benefit             (76)                  (356)
Income tax benefit                          -                      -
                             -------------------    ----------------------
  Net loss                   $            (76)      $           (356)
                             ===================    ======================
  Net loss per share, basic  $          (0.05)      $          (0.24)
                             ===================    ======================




                             For the six months     For the six months
                            ending June 30, 2005    ending June 30, 2004
--------------------------------------------------------------------------
Interest income              $          1,646       $            510
Interest expense                          420                     49
                             -------------------    ----------------------
  Net interest income                   1,226                    461
Provision for loan losses                 116                    125
                             -------------------    ----------------------
  Net interest income,
   net of provision
   for loan losses                      1,110                    336
Deposit fees and other
 non-interest income                       73                     33
Income associated with
 the sale of loans                        133                     93
Non-interest expense                    1,525                  1,180
                             -------------------    ----------------------
  Net loss before tax benefit            (209)                  (718)
Income tax benefit                          -                      -
                             -------------------    ----------------------
  Net loss                   $           (209)      $           (718)
                             ===================    ======================
  Net loss per share, basic  $          (0.14)      $          (0.48)
                             ===================    ======================



Performance by Quarter       6/30/05     3/31/05     12/31/04    9/30/04
--------------------------------------------------------------------------

Loans                        $ 49,527    $ 44,641    $ 41,146    $ 30,815
Non-performing loans and
 loans past due 90 days      $      -    $      -    $      -    $      -
Loan loss reserve as a
 percentage of loans             1.27%       1.31%       1.25%       1.20%

Deposits                     $ 44,100    $ 34,294    $ 29,064    $ 20,777

Net loss                     $    (76)   $   (133)   $   (252)   $   (347)
Net loss per share, basic    $  (0.05)   $  (0.09)   $  (0.17)   $  (0.23)
Net interest margin              4.99%       5.17%       5.28%       4.80%
Efficiency ratio (1)              105%        109%        119%        155%

(1) Calculated by dividing net interest income and non-interest income by
    non-interest expense.                                         

Contact Information

  • Analyst Contact:
    Felice Belfiore
    Chief Financial Officer
    Capital Pacific Bank
    (503) 542-8505
    Email Contact

    Media Contact:
    Nancy Carter
    Carter PR
    (503) 452-3333
    Email Contact