Capital Bancorp reports $5.0 million third-quarter earnings; highest quarterly earnings in company's history.

MIAMI--(BUSINESS WIRE)--Oct. 17, 1995--Capital Bancorp (FL) (NASDAQ:CBCP) Tuesday reported consolidated net income of $5.0 million ($0.66 per share) for the three months ended Sept. 30, 1995, representing a 20% increase over the previous record of $4.2 million ($0.58 per share) recorded during the same period one year ago.

For the nine months ended Sept. 30, 1995, earnings were $12.7 million ($1.67 per share), or 19% higher than the $10.7 million ($1.49 per share) recorded during the same period of 1994.

Capital Bancorp's return on assets was 1.34% and return on equity was 19.01% for the quarter, and 1.21% and 17.05%, respectively, for the nine month period. Consolidated figures include the results of wholly owned subsidiaries, Capital Bank and Capital Factors Inc.

Capital Bancorp Chairman Daniel M. Holtz said the earnings reflected strong revenue growth in interest and fee income corresponding to increases in earning assets. Average earning assets rose to $1.16 billion for the quarter ended Sept. 30, 1995 from $1.07 billion a year earlier, propelled by $131 million in new loans and advances.

Net interest income was 19% higher for the quarter ended Sept. 30, 1995, increasing to $18.1 million from $15.2 million a year ago. The net interest margin increased from 5.77% to 5.97%. For the nine months ended the same date, net interest income reached $50.4 million, 16% higher than $43.4 million a year ago.

A 13% increase in non-interest income during the quarter, to $12.4 million, was largely attributed to increased factoring commissions. Factoring commissions at Capital Factors increased 17% to $6.4 million for the quarter. Factored accounts receivable increased 32% to $561.2 million during the third quarter of 1995 and 31% to $1.5 billion for the nine months ended Sept. 30, 1995.

Holtz said Capital Bank's provisions for credit losses increased to $2.4 million during the quarter ended Sept. 30, 1995. Total provisions for credit losses during the third quarter of 1994 were $850,000. He noted that the 1994 quarter included approximately $1.9 million in recoveries. "Overall asset quality continues to trend favorably," Holtz said. "The ratio of non-performing assets to total assets was reduced from 1.87% at Sept. 30, 1994 to 1.03% at Sept. 30, 1995."

Non-interest operating expenses increased by slightly less than 9% during the current quarter, due to higher costs in a variety of areas. For the first nine months of 1995, operating expenses were 14% higher than the comparable period of 1994. Approximately 40% of the nine month increase results from $2.7 million in provisions for overdraft losses recorded during the first two quarters of 1995. Excluding the overdraft provisions, operating expenses increased 8% for the nine month period. "Achieving revenue growth rates in excess of expense growth rates, as was done for the third quarter, is a standing objective," Holtz said. "Total interest and non-interest revenues increased 16% for the quarter and 13% for the first nine months of 1995, outpacing expense growth for both periods.

"The earnings results give further credence to Capital's diversification strategy," said Holtz. "We have been able to secure income growth through the continued expansion of Capital Factors' activities, as well as selecting among lending opportunities in several different sectors, particularly international and consumer." Capital Bancorp's total assets reached $1.52 billion at Sept. 30, 1995 compared with $1.32 billion a year ago. Net loans and advances increased almost 17% to $906.7 million at Sept. 30, 1995 from $775.4 million the previous year. Deposits were $965.4 million compared with $877.4 million at Sept. 30, 1994. Total stockholders' equity increased to $107.6 million at Sept. 30, 1995, compared to $89.7 million a year ago.

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. -0-

                   CAPITAL BANCORP AND SUBSIDIARIES
               SUMMARY OF CONSOLIDATED QUARTERLY RESULTS
                      Period ended Sept. 30, 1995
                              (Unaudited)
                (In thousands except for per share data)

RESULTS OF OPERATIONS                  1995              1994
  for the quarter ended Sept. 30:      ----              ----

Net interest income                   $18,111           $15,223
Provisions for credit losses            2,400               850
Non-interest income                    12,352            10,938
Non-interest expense                   19,931            18,355
Net income                              5,024             4,194
Earnings per share                        .66               .58
Return on assets (1)                    1.34%             1.25%
Return on equity (1)                   19.01%            18.78%
Net interest margin (2)                 5.97%             5.77%

RESULTS OF OPERATIONS
  for the nine months ended Sept. 30:

Net interest income                   $50,441           $43,438
Provisions for credit losses            4,100             4,560
Non-interest income                    34,369            31,376
Non-interest expense                   60,325            53,124
Net income                             12,685            10,700
Earnings per share                       1.67              1.49
Return on assets (1)                    1.21%             1.14%
Return on equity (1)                   17.05%            16.55%
Net interest margin (2)                 6.11%             5.91%

BALANCE SHEET
  Sept. 30:

Total assets                       $1,519,006        $1,319,176
Net loans and advances                906,723           775,350
Allowance for credit losses            15,221            12,391
Deposits                              965,476           877,396
Stockholders' equity                  107,640            89,726
Non-performing loans and other
  real estate (as a % of total
  assets)                               1.03%             1.87%

Capital Bancorp:
  Tier One risk-based ratio            10.86%            10.67%
  Total risk-based ratio               12.11%            11.92%
  Leverage ratio                        7.80%             7.28%

Capital Bank:
  Tier One risk-based ratio            10.51%            10.80%
  Total risk-based ratio               11.76%            12.05%
  Leverage ratio                        7.57%             7.38%

(1)  Annualized
(2)  Annualized, tax equivalent

CONTACT: Capital Bancorp, Miami

Lucious T. (Tim) Harris, Treasurer

Finance Division

305/536-1677