Capital Bancorp reports $4.0 million second quarter earnings.

MIAMI--(BUSINESS WIRE)--July 19, 1995--Capital Bancorp Wednesday reported consolidated net income of $4.0 million ($.53 per share) for the three months ended June 30, 1995, 21% higher than $3.3 million ($.46 per share) for the same period of 1994.

Return on assets was 1.15% while the return on equity was 16.13%. Capital's shareholders equity passed $100 million at quarter's end, rising 17% to $100.8 million from $86.5 million a year ago. For the six months ended June 30, 1995 earnings were $7.7 million ($1.03 per share), an increase of 18% over $6.5 million ($.91 per share) during the same period in 1994. Consolidated figures include the results of wholly owned subsidiaries Capital Bank and Capital Factors, Inc. Per share data for both years takes into account the recent 3-for-2 split of Capital Bancorp common stock, which was effective June 22, 1995.

Chairman Daniel M. Holtz said increases in average earning assets were responsible for solidly higher income levels. Net interest income for the three months ended June 30, 1995 increased 12% to $16.3 million from $14.6 million for the same period a year earlier. Average earning assets increased 10% to $1.09 billion during the period, up from $989 million a year ago. The net interest margin improved to 6.11% compared with 6.08% a year earlier.

Continued improvement in asset quality resulted in lower provisions for credit losses. Total provisions for credit losses were $875,000 for the quarter ended June 30, 1995, compared with $1.7 million during the quarter ended June 30, 1994. Non-performing assets, including non-accrual loans and other real estate, declined 26% during the period, to $19.4 million or 1.37% of assets at June 30, 1995, compared with $26.2 million or 1.98% of assets, a year ago. Non-interest income increased to $11.2 million in the second quarter, 10 % higher than the $10.2 million reported in the second quarter of 1994. Through the six months ended June 30, 1995, total non-interest income was $22.0 million, compared to $20.4 million for the comparable period of 1994. The 1994 amount included securities gains of $1.1 million, recorded during last year's first quarter.

Non-interest expense increased to $20.3 million for the three months ended June 30, 1995, from $17.9 million a year earlier. Holtz said the category included $1.3 million in additional provisions to fully reserve for potential losses resulting from several previously reported overdrafts related to one customer. For the six months ended June 30, 1995, aggregate loss provisions related to this incident were approximately $2.7 million. These unusual items reduced earnings per share by approximately $.18 and $.37 for the quarter and six months, respectively, ending June 30, 1995.

"Capital Bancorp's earnings performance has been driven by strong growth in earning assets, including loans and advances," said Holtz. "In spite of recent intermittent signs of an economic slowdown, management is optimistic about earning asset performance for the second half of 1995."

Holtz said Capital Bancorp's capital levels exceed all regulatory minimum requirements and qualify the institution as well-capitalized for regulatory purposes. At June 30, 1995, Capital Bancorp reported Tier One and total risk-based capital ratios of 10.8% and 12.1%, respectively, while Capital Bank reported ratios of 10.7% and 11.9%. On the same date, Capital Bancorp and Capital Bank each reported leverage ratios of 7.9% and 7.8%, respectively.

Capital Bancorp, a Florida bank holding company, is the parent of Miami-based Capital Bank, which has 28 South Florida offices and a Fort Lauderdale-based factoring subsidiary, Capital Factors, Inc., which has offices in New York, Los Angeles and Charlotte. Total consolidated assets at June 30, 1995 were $1.4 billion. -0-

                CAPITAL BANCORP AND SUBSIDIARIES
           SUMMARY OF CONSOLIDATED QUARTERLY EARNINGS
                   PERIOD ENDED JUNE 30, 1995

            (In thousands except for per share data)

RESULTS OF OPERATIONS,               1995          1994
     for the quarter ended June 30:

Net interest income                $16,334        $14,647
Provisions for credit losses           875          1,700
Non-interest income           11,18810,187
Non-interest expense          20,30017,891
Net income                           3,972          3,293
Earnings per share                     .53            .46
Return on average assets(1)     1.15%1.07%
Return on average equity(1)         16.13%         15.49%
Net interest margin(1)(2)            6.11%          6.08%

RESULTS OF OPERATIONS,
     for the six months ended June 30:

Net interest income               $32,330         $28,215
Provisions for credit losses        1,700           3,710
Non-interest income          22,01720,438
Non-interest expense         40,39434,769
Net income                          7,661           6,506
Earnings per share                   1.03            0.91
Return on average assets(1)         1.14%           1.08%
Return on average equity(1)        15.97%          15.39%
Net interest margin(1)(2)           6.20%           5.99%

BALANCE SHEET
     June 30:

Total assets                   $1,406,818      $1,324,836
Net loans and advances            853,097         720,396
Allowance for credit losses        13,405          13,357
Deposits                          946,935         928,016
Stockholders' equity              100,790          86,454
Non-performing loans and other
  real estate (as a % of
  total assets)                     1.37%           1.98%

Capital Bancorp:
     Tier One risk-based ratio     10.81%          10.64%
     Total risk-based ratio        12.06%          11.90%
     Leverage ratio                 7.86%           7.57%

Capital Bank:
     Tier One risk-based ratio     10.65%          10.84%
     Total risk-based ratio        11.91%          12.09%
     Leverage ratio                 7.75%           7.73%

(1) Annualized
(2) Tax equivalent

CONTACT: Capital Bancorp, Miami

Lucious T. (Tim) Harris, Treasurer

305/536-1677