Capital Mark - Bank & Trust

CapitalMark Reports First Quarter Earnings Increase

Chattanooga, Tennessee – April 28, 2011 – CapitalMark Bank & Trust today reported earnings for the first quarter ended March 31, 2011.

FIRST QUARTER HIGHLIGHTS:

·  Net Income was $718,302 increasing 4.8% over the first quarter 2010.

·  Total Assets were $491 million representing a 20.5% increase from first quarter 2010.

·  Deposits totaled $434.2 million, a 24.6% increase over first quarter 2010.

·  Non-Performing Assets to Total Assets Ratio decreased to 1.9% from 2.5% in fourth quarter 2010.

R. Craig Holley, CapitalMark’s Chairman, President and CEO, stated:  “We are proud to report positive results in spite of headwinds which include historic regulatory changes and the resultant cost pressures. We are particularly pleased with a decrease in non-performing assets; however, the slow and uncertain economic recovery will continue to impact some borrowers.” Lastly, Holley noted, “Capital ratios remain significantly above those for well-capitalized banks under applicable regulatory guidelines; further, our strong capital position serves as the foundation for our continued growth and positions us optimally as our industry faces further consolidation.” 

About CapitalMark Bank & Trust:

CapitalMark Bank & Trust offers a wide range of banking and trust services to businesses and individuals.  Founded March 5, 2007, CapitalMark has locations in Chattanooga and Knoxville.  Additional information about CapitalMark and its full line of products and services can be found at www.capitalmark.com.

Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made based upon management’s belief as well as assumptions made by, and information currently available to, management pursuant to “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Our actual results may differ materially from the results anticipated in forward-looking statements due to a variety of factors, including governmental monetary and fiscal policies, deposit levels, loan demand, loan collateral values, securities portfolio values, interest rate risk management, the effects of competition in the banking business from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market funds and other financial institutions operating in our market area and elsewhere, including institutions operating through the Internet, changes in governmental regulation relating to the banking industry, including regulations relating to branching and acquisitions, failure of assumptions underlying the establishment of reserves for loan losses, including the value of collateral underlying delinquent loans, and other factors. We caution that such factors are not exclusive. We do not undertake to update any forward-looking statement that may be made from time to time by, or on behalf of, us.