Capital Bank reported a net second-quarter loss of $594,000, which was an improvement of 43% compared with a year earlier.
The bank in San Juan Capistrano, Calif., said Friday that its quarterly loss stemmed solely from operating costs because it had no loan losses during the period. More than 60% of the net loss was attributed to noncash charges for stock option expenses and for maintaining loan-loss reserves.
The bank's total assets nearly doubled, to $85.6 million, in the quarter, from $43 million a year earlier.
The president and chief executive, J.M. "Mike" Justice Jr., said in a press release that the bank is "on the cusp of" being profitable "as evidenced by the significant decline in our net operating loss."