From GlobeNewswire: 2025-04-28 17:21:00

Capital Bancorp, Inc. reported a net income of $13.9 million and a return on average assets of 1.75% in the first quarter of 2025. Core net income was $14.9 million, with a return on average equity of 15.56%. Gross loans grew by $48.2 million, and total deposits increased by $129.4 million.

The company’s book value per common share was $22.19 at the end of March 2025, showing an increase from the previous quarters. Net interest income rose by $1.7 million, and fee revenue totaled $12.5 million in the first quarter. The allowance for credit losses to total loans was 1.81%.

A cash dividend of $0.10 per share was declared for shareholders, payable on May 28, 2025. The CEO expressed gratitude for the successful integration of IFH, leading to a strong start in 2025. The company’s diversified earnings platform and growth initiatives are driving continued success and momentum. In the first quarter of 2025, core net income was $14.9 million, with a net interest income of $46.0 million, up 3.9% from the previous quarter and 31.5% year-over-year. Interest income increased to $62.8 million, driven by various factors, while interest expense decreased by 3.8% quarter-over-quarter. The provision for credit losses decreased by $5.6 million from the previous quarter.

Noninterest income was $12.5 million, up $0.6 million from the previous quarter, with core fee revenue decreasing by $2.0 million. Noninterest expenses were $38.1 million, up $0.5 million from the previous quarter, with core noninterest expenses increasing by $1.9 million. Marketing expenses increased by $0.7 million, while regulatory assessment expenses increased $0.4 million.

Total assets reached $3.3 billion at the end of March 2025, up 18.1% from December 2024. Cash and cash equivalents were $294.0 million, up $88.7 million from the previous quarter. Total portfolio loans stood at $2.68 billion, increasing by $48.2 million from the previous quarter and $713.9 million year-over-year, including contributions from the acquisition of IFH. Commercial and industrial loans increased $39.8 million, and construction real estate loans increased $22.0 million, partially offset by decreases in other loan categories. Total deposits grew to $2.89 billion, a 19.0% increase from the previous quarter and a 44.2% increase year-over-year, driven by organic growth and acquisitions. Insured deposits were approximately $2.0 billion.

Low-and-no interest bearing deposits increased to $1.1 billion, or 38.8% of total deposits. The average portfolio loans-to-deposit ratio was 95.15% for the quarter. The investment securities portfolio had a fair market value of $213.5 million, with U.S. Treasury Securities representing 56% of the portfolio. The Company does not have a held-to-maturity investment securities portfolio.

The Company maintained stable sources of available borrowings totaling $820.9 million at March 31, 2025. The Common Equity Tier-1 capital ratio was 13.33%. Net interest margin was 6.05%, with a total cost of deposits at 2.42%. Efficiency ratios improved to 64.9%, and the ACL Coverage Ratio equaled 1.81%.

Nonperforming assets increased to 1.21% of total assets, with total nonaccrual loans at $40.5 million. Special mention loans totaled $63.0 million, and substandard loans totaled $45.7 million. Performance ratios for the quarter showed strong returns on assets, equity, and tangible common equity. As of March 31, 2024, the Company had no goodwill or intangible assets. Core ROA, ROE, and ROTCE for March 31, 2025, were 1.87%, 16.64%, and 18.77%, respectively. Book value per common share at March 31, 2025, was $22.19, a $0.87 increase from December 31, 2024.

Commercial Bank saw a $55.6 million increase in gross portfolio loans at March 31, 2025. Net interest income increased to $48.2 million, driven by loan growth and higher yields. Nonperforming assets rose to 1.21% of total assets, with total nonaccrual loans at $40.5 million.

OpenSky™ accounts grew by 11.2 thousand in 1Q 2025. Loan balances were $118.7 million at March 31, 2025, a decrease from December 31, 2024. Total revenue was $18.2 million, down $1.0 million from the previous quarter.

Capital Bank Home Loans originated $65.8 million in loans held for sale in 1Q 2025, with a gain on sale of $1.7 million. Windsor Advantage saw gross government loan servicing revenue of $4.6 million in 1Q 2025, including $1.0 million in Capital Bank related fees. Windsor’s total servicing portfolio was $2.6 billion at March 31, 2025, and $2.5 billion at December 31, 2024. Interest income was $62,760, interest expense was $16,713, net interest income was $46,047, and net income was $13,932. Earnings per share increased to $0.84 for basic and $0.82 for diluted.

Comparative financial highlights show a growth in total assets to $3,349,805 at March 31, 2025, from $2,324,238 at March 31, 2024. Total deposits increased to $2,891,333 from $2,005,695. The tangible book value per share also rose to $19.81 from $18.68. Quarterly financial data reflects positive growth across various financial metrics.

Consolidated statements of income for the first quarter of 2025 show interest income of $62,760 and interest expense of $16,713. Noninterest income was $12,549, and noninterest expenses totaled $38,053. Income before income taxes was $18,297, with a net income of $13,932. Earnings per share improved to $0.84 for basic and $0.82 for diluted.

The consolidated balance sheets for March 31, 2025, show total assets of $3,349,805. Total deposits were $2,891,333, with total liabilities at $2,980,228 and stockholders’ equity at $369,577. The average outstanding balance and yields on assets and liabilities demonstrate stability and growth in interest income and expenses over time. Segment information and historical allocation changes were also noted. In the first quarter of 2025, the company reported total assets of $3,349,805, with net interest income of $46,047. Noninterest income was $12,549, while net income before taxes reached $18,297. For the same period in 2024, total assets were $3,206,911, with net interest income of $44,327 and net income before taxes at $10,776.

The historical financial highlights for the first quarter of 2025 show a net interest margin of 6.05% and a return on average assets of 1.75%. Total assets stood at $3,349,805, with total deposits at $2,891,333. The nonperforming assets to total assets ratio was 1.21%, and the total risk-based capital ratio was 13.00%.

In terms of loan composition, as of March 31, 2025, commercial real estate non-owner occupied loans were $484,399, while residential real estate loans were $693,597. The total portfolio loans receivable reached $2,678,406. The composition of deposits for the same period showed noninterest-bearing deposits at $812,224 and interest-bearing demand deposits at $296,455.

Capital Bank Home Loan Metrics for the first quarter of 2025 indicated mortgage loans sold at $54,144, with a gain on sale of loans at $1,664. OpenSky™ Portfolio Metrics showed secured credit card loans gross at $81,252 and unsecured credit card loans gross at $38,987 in the same period. In the first quarter of 2025, Capital Bancorp, Inc. reported a net income of $13,932, with core net income totaling $14,896. Earnings per share were $0.82, while core earnings per share stood at $0.88. The return on average assets was 1.75%, and the core return on average assets was 1.87%.

The Commercial Bank’s net interest margin for the first quarter of 2025 was 4.32%. The net interest income for the Commercial Bank was $31,515, with an average of $2,959,665 in interest-earning assets. The portfolio loans receivable yield was 7.14%.

Pre-tax, pre-provision net revenue (PPNR) for the first quarter of 2025 was $20,543, while core PPNR stood at $21,809. The allowance for credit losses to total portfolio loans was 1.81%. Nonperforming assets to total assets were 1.21%.

Capital Bancorp, Inc., a bank holding company, operates branches in various locations. With assets of approximately $3.3 billion as of March 31, 2025, the company’s common stock is traded on the NASDAQ Global Market under the symbol “CBNK.” More information can be found on the company’s website.

The earnings release contains forward-looking statements regarding future events and financial performance. These statements are based on current expectations and projections, but actual results may differ due to various factors. Risks and uncertainties are detailed in the company’s filings with the Securities and Exchange Commission.



Read more at GlobeNewswire:: Capital Bancorp, Inc. Announces Strong First Quarter