CapitalMark Bank boosts quarterly earnings

CapitalMark Bank boosts quarterly earnings

July 19th, 2012 by Staff Reports in Business Around the Region

Craig Holley, Chairman, President, and CEO of CapitalMark Bank & Trust

Craig Holley, Chairman, President, and CEO of CapitalMark...

Photo by Dan Henry /Times Free Press.

CapitalMark Bank & Trust earned a record $1.9 million, or 25 cents per share, in the second quarter, nearly double its year-ago profits.

The Chattanooga bank reported Wednesday that second quarter earnings were swelled by a $1.6 million securities gain this spring. But even without the one-time boost, CapitalMark profits were still up 27 percent over the same period a year ago.

CapitalMark, which was founded in 2007 and has grown to include more than $740 million in assets, has been profitable for 14 consecutive quarters.

"While we maintain steady growth, I want to underscore our conservative management reflected in the bank's favorable credit quality metrics," CapitalMark Chairman and CEO R. Craig Holley said in a statement Wednesday.

In the first half of 2012, CapitalMark earned $3.4 million while cutting its nonperforming assets to less than 1 percent of bank assets.

CapitalMark operates only one office in Chattanooga and one in Knoxville, although the bank supports its operations with online and mobile offices and staff in both markets. CapitalMark is preparing to add branches in Oak Ridge and Cleveland, Tenn., this fall and last month launched a $10 million stock offering to support the expansion

"In the midst of unpredictable banking headlines, CapitalMark remains a bright spot offering consistent, positive news," he said.