Financial Performance - Net income for Q4 2024 was $7.5 million, or $0.45 per diluted share, a decrease from $8.7 million, or $0.62 per diluted share in Q3 2024[4] - Adjusted net income, excluding merger-related expenses and other impacts, was $15.5 million, or $0.92 per diluted share for Q4 2024[11] - Net income for Q4 2024 was $7,533,000, a decrease of 13.1% from $8,672,000 in Q3 2024[37] - The net income for the year ended December 31, 2024, was $30,972,000, compared to $35,871,000 for the year ended December 31, 2023, reflecting a decrease of approximately 13.3%[67] - Earnings per share (diluted) for the year ended December 31, 2024, was $2.11, down 17.3% from 2023[33] - Earnings per Share (EPS) for Q4 2024 was $0.45, down from $0.62 in Q3 2024[59] - Adjusted EPS for Q4 2024 was $0.92, an increase from $0.66 in Q3 2024[59] Revenue and Income Sources - Total revenue for OpenSky decreased by $0.5 million to $19.2 million in the fourth quarter 2024[25] - Noninterest income for Q4 2024 totaled $11.9 million, contributing to a 21.2% share of total revenue[3] - Noninterest income for the year ended December 31, 2024, was $31,410,000, a 25.8% increase from 2023[33] - Total Revenue for Q4 2024 reached $56,240,000, representing a 25.3% increase compared to $44,989,000 in Q3 2024[59] - Noninterest Income for Q4 2024 was $11,913,000, more than doubling from $6,635,000 in Q3 2024[59] Assets and Liabilities - Total assets reached $3.2 billion at December 31, 2024, reflecting a $646.1 million, or 25.2% increase from September 30, 2024[15] - Total assets as of December 31, 2024, were $3,206,911,000, a 44.1% increase compared to December 31, 2023[35] - Total assets as of December 31, 2024, reached $3,206,911, up from $2,560,788 as of September 30, 2024, indicating a growth of 25.2%[47] - The company’s total liabilities and stockholders' equity as of December 31, 2024, were $2,554,049 thousand, compared to $2,188,299 thousand in 2023, representing a growth of 16.7%[42] Loan and Deposit Growth - Gross loan growth for Q4 2024 was $522.6 million, with $373.5 million attributed to the IFH acquisition and $149.1 million from organic growth[3] - Total deposit growth for Q4 2024 was $575.7 million, including $459.0 million from the IFH acquisition and $116.7 million from organic growth[3] - Total portfolio loans rose by $522.6 million, or 24.8%, to $2.6 billion at December 31, 2024[16] - Total deposits increased by $575.7 million, or 26.3%, to $2.8 billion at December 31, 2024[16] - Total deposits reached $2,761,939,000, reflecting a 45.6% increase compared to $1,895,996,000 in the previous year[53] Credit Quality and Provisions - The allowance for credit losses to total loans ratio was 1.85% at December 31, 2024, including 1.44% for the legacy Capital Bank portfolio[3] - Provision for credit losses increased to $7,828,000 in Q4 2024, up 108.9% from Q3 2024 and up 178.8% from Q4 2023[32] - The allowance for credit losses increased to $48,652,000 as of December 31, 2024, up from $31,925,000 as of September 30, 2024, indicating a rise in provisions[70] - Nonperforming assets increased by 34 basis points to 0.94% of total assets at December 31, 2024[19] - Nonperforming assets to total assets ratio improved to 0.94% as of December 31, 2024, from 0.60% as of September 30, 2024[70] Efficiency and Ratios - Efficiency ratio was 66.7% for the three months ended December 31, 2024, compared to 66.1% for the prior quarter[18] - The Efficiency Ratio for Q4 2024 improved to 66.70%, compared to 66.07% in Q3 2024[59] - Annualized return on average assets (ROAA) was 0.96% for the three months ended December 31, 2024, down from 1.42% in the prior quarter[20] - Return on Average Assets (ROAA) for Q4 2024 was 0.96%, down from 1.42% in Q3 2024[59] - Return on average tangible common equity for the quarter ended December 31, 2024, was 9.47%, down from 12.59% in the previous quarter[72] Dividends and Shareholder Equity - The company declared a cash dividend of $0.10 per share, payable on February 26, 2025[4] - Total stockholders' equity increased to $355,139,000 as of December 31, 2024, a 39.3% increase from 2023[35] - The company reported a total stockholders' equity of $355,139,000 as of December 31, 2024, compared to $280,111,000 as of September 30, 2024, an increase of 26.8%[38] - Book value per share increased to $21.31, a 16.4% increase from the previous year[35] Acquisitions and Strategic Moves - The acquisition of Integrated Financial Holdings, Inc. was completed on October 1, 2024, adding significant assets and expanding the company's lending platform[6] - The company reported merger-related expenses of $3,930,000 for the year ended December 31, 2024[67] Forward-Looking Statements and Risks - The company emphasizes that forward-looking statements may not guarantee future performance and actual results could differ materially from expectations[75] - Key risks include geopolitical concerns, changes in economic conditions, and competitive pressures on pricing and services[76] - The company does not intend to update forward-looking statements after the date they are made, except as required by law[77]

Group 1 - Mulvihill Canadian Bank Enhanced Yield ETF has declared a monthly cash distribution of $0.058333 per unit [1] - The distribution is payable on February 7, 2025, to unitholders of record on January 31, 2025 [1] - For further inquiries, contact information for Investor Relations is provided [1]

Core Insights - Capital Bank has been recognized as one of American Banker's 2024 Best Banks to Work For, ranking No. 79 among 90 banks [1][2] - This recognition highlights Capital Bank's commitment to creating a positive workplace for its employees, marking the fifth time the bank has received this award [2] Employee Engagement and Programs - Capital Bank emphasizes employee growth and well-being through various programs, including employee rewards, wellness initiatives, and DEIB (Diversity, Equity, Inclusion, and Belonging) awareness [3] - The bank has launched a signature initiative called Capital Bank Immersion, which helps new employees connect with senior leaders and understand the bank's operations during onboarding [4] Company Overview - Capital Bancorp, Inc. operates with approximately $2.6 billion in assets as of September 30, 2024, and has branches in six locations, including Washington D.C. and Florida [5] - The bank has been providing financial services since 1999 and is traded on the NASDAQ Global Market under the symbol "CBNK" [5] Industry Context - The Best Banks to Work For ranking is based on anonymous employee surveys and a review of benefits, showcasing the importance of employee satisfaction in the banking industry [2][5]

Group 1 - The stock of Capital Bancorp, Inc. (CBNK) is experiencing significant attention due to high implied volatility in the options market, particularly the Apr 17, 2025 $35 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in Capital Bancorp's stock price, possibly due to an upcoming event [2] - Currently, Capital Bancorp holds a Zacks Rank 3 (Hold) in the Banks - Northeast industry, which is in the top 18% of the Zacks Industry Rank, but analysts have not increased earnings estimates for the current quarter, with a slight downward revision affecting the consensus estimate from 67 cents to 66 cents per share [3] Group 2 - The high implied volatility surrounding Capital Bancorp may indicate a developing trading opportunity, as options traders often seek to sell premium on such options, hoping the stock does not move as much as expected by expiration [4]

Capital Position and Regulatory Compliance - As of September 30, 2024, the Bank was classified as "well capitalized" and in compliance with all applicable regulatory capital requirements[131]. - The Company monitors its capital position closely to ensure it remains strong following the recent merger[131]. - The Company reported a Tier 1 capital ratio of 14.88% and a total capital ratio of 16.65% as of September 30, 2024[254]. - The common equity tier 1 capital ratio was 14.78% as of September 30, 2024, compared to 15.43% as of December 31, 2023[254]. - The common equity to total assets ratio was 10.94% at September 30, 2024, down from 11.45% at December 31, 2023[246]. Merger and Business Segments - The Company completed its merger with Integrated Financial Holdings, Inc. on October 1, 2024, with IFHI having over $541 million in assets and $450 million in total deposits[133][135]. - The Company operates through four business segments: commercial banking, mortgage lending, credit cards, and corporate activities[127]. Financial Performance - Net income for the three months ended September 30, 2024 was $8.7 million, an 11.4% decrease from $9.8 million in the same period in 2023[140]. - Net income for the nine months ended September 30, 2024 was $23.4 million, a 12.7% decrease from $26.8 million in the same period in 2023[143]. - Total revenue for the three months ended September 30, 2024, was $44,989,000, compared to $43,136,000 for the same period in 2023, reflecting a growth of 4.3%[269]. - The efficiency ratio for the three months ended September 30, 2024, was 66.07%, slightly higher than 65.02% in the previous year[269]. Income and Expenses - Net interest income increased by $1.5 million, or 4.2%, to $38.4 million, primarily due to increased average balances of $205.8 million in portfolio loans[140]. - Noninterest income for the three months ended September 30, 2024 was $6.6 million, a 4.9% increase from $6.3 million in the prior year[141]. - Noninterest expenses increased to $29.7 million for the three months ended September 30, 2024, compared to $28.0 million in the same period in 2023[142]. - Salaries and employee benefits increased by $0.9 million, or 7.5%, for the three months ended September 30, 2024, compared to the same period in 2023[171]. Loan and Credit Quality - Provision for credit losses for the three months ended September 30, 2024 was $3.7 million, an increase of $1.5 million from the same period in 2023[140]. - The allowance for credit losses (ACL) was $31.9 million as of September 30, 2024, up from $28.6 million at December 31, 2023[220]. - Net charge-offs for the three months ended September 30, 2024, were $2.7 million, or 0.51% on an annualized basis of average portfolio loans, compared to $1.8 million, or 0.38% for the same period in 2023[162]. - Nonperforming assets are monitored closely, with loans placed on nonaccrual status generally when they become 90 days past due[204]. Asset and Deposit Growth - Total assets reached $2,363,928 thousand for the three months ended September 30, 2024, up from $2,183,521 thousand in the same period in 2023[154]. - Total liabilities increased by $309.4 million from December 31, 2023, primarily due to a $290.2 million growth in the deposit portfolio[221]. - Total interest-bearing deposits increased to $1,468.1 million as of September 30, 2024, up from $1,278.6 million at December 31, 2023, representing a growth of 14.8%[223]. - Average total deposits for the nine months ended September 30, 2024, were $2,020.1 million, with an average rate of 2.63%, compared to $1,864.5 million and 2.13% for the year ended December 31, 2023[225]. Interest Rate Sensitivity and Risk Management - The Earnings at Risk (EAR) analysis indicated a potential decrease in net interest income of 4.6% under a -400 bps interest rate shock scenario as of September 30, 2024[293]. - The Economic Value of Equity (EVE) analysis showed a decrease of 20.0% under a -400 bps interest rate shock scenario, indicating significant sensitivity to interest rate changes[294]. - The company utilizes both static and dynamic simulation models to assess interest rate impacts, indicating a comprehensive risk management approach[289]. - Management has the ability to adjust asset and liability durations to manage interest rate sensitivity, showcasing proactive risk management strategies[292].

Financial Performance - Net income for Q3 2024 was $8.7 million, or $0.62 per diluted share, an increase from $8.2 million, or $0.59 per diluted share in Q2 2024[1]. - Net income for Q3 2024 was $8,672, representing a 5.7% increase from Q2 2024 but a decrease of 11.4% compared to Q3 2023[40]. - Net income for the nine months ended September 30, 2024, was $23,439, down 12.7% from $26,841 in the same period of 2023[41]. - Adjusted net income for the nine months ended September 30, 2024, was $24,596,000, down from $26,841,000 for the same period in 2023, reflecting a decrease of approximately 8.4%[72]. - Earnings per share (diluted) for Q3 2024 was $0.62, a 5.1% increase from Q2 2024 but down 11.4% from Q3 2023[40]. Asset and Deposit Growth - Total assets increased by $122.2 million, or 5.0%, to $2.6 billion as of September 30, 2024[15]. - Total assets increased to $2,560,788, a 12.7% increase from $2,272,484[43]. - Total deposits reached $2,186,224 thousand in September 2024, up from $2,100,428 thousand in June 2024, marking an increase of 4.1%[49]. - Deposit growth for Q3 2024 was $85.8 million, or 16.2% annualized, with noninterest-bearing deposits increasing by $33.5 million, or 19.5% annualized[1]. - Deposits grew by 11.1% to $2,186,224 from $1,967,988[43]. Loan Growth - Loan growth for Q3 2024 was $85.9 million, representing a 16.9% annualized increase[1]. - Gross portfolio loans increased by $80.5 million to $2.0 billion at September 30, 2024, with contributions from commercial real estate loans ($38.5 million), residential real estate loans ($22.4 million), and commercial and industrial loans ($16.1 million)[29]. - Average OpenSky credit card loan balances increased by $8.2 million, or 7.3%, to $119.5 million for the third quarter 2024[36]. - Total portfolio loans receivable increased to $2,107,522 thousand from $2,021,588 thousand, reflecting a growth of 4.9% quarter-over-quarter[63]. Interest Income and Margin - Net interest income increased by $1.3 million, or 3.5%, from Q2 2024, totaling $38.4 million[8]. - Interest income for Q3 2024 increased to $52,610, up 3.9% from Q2 2024 and up 10.2% from Q3 2023[40]. - Net interest income for Q3 2024 was $38,354, reflecting a 3.5% increase from Q2 2024 and a 4.2% increase from Q3 2023[40]. - The net interest margin decreased to 6.41%, while the core net interest margin increased to 4.08%[23]. - The adjusted net interest margin for the quarter ended September 30, 2024, was 4.08%, up from 4.00% in the previous quarter, reflecting an improvement in profitability[74]. Credit Losses and Nonperforming Assets - The provision for credit losses was $3.7 million, an increase of $0.3 million from Q2 2024, primarily due to unsecured credit card loan growth[11]. - Nonperforming assets increased by 2 basis points to 0.60% of total assets at September 30, 2024, with total nonaccrual loans rising to $15.5 million[30]. - Provision for credit losses rose to $3,748 in Q3 2024, a 9.7% increase from Q2 2024 and a significant 64.4% increase from Q3 2023[40]. - Total nonperforming assets amounted to $15,460 thousand as of September 30, 2024, representing 0.60% of total assets[82]. Efficiency and Return Metrics - The efficiency ratio was 66.1% for the three months ended September 30, 2024, down from 67.1% for the three months ended June 30, 2024; adjusted efficiency ratio was 64.9% compared to 66.9%[25]. - Annualized return on average assets (ROAA) was 1.42% and annualized return on average equity (ROAE) was 12.59% for the three months ended September 30, 2024, slightly up from 1.40% and 12.53% respectively for the prior quarter[26]. - The return on average equity for the quarter ended September 30, 2024, was 12.59%, compared to 12.53% in the previous quarter, showing stable profitability[62]. - The efficiency ratio for the nine months ended September 30, 2024, was 68.28%, compared to 66.73% for the same period in 2023, indicating a decrease in operational efficiency[72]. Capital and Regulatory Ratios - The common equity tier 1 capital ratio was reported at 14.78%, exceeding all capital adequacy requirements[21]. - The total risk-based capital ratio decreased to 13.76% from 14.51% in the previous quarter[64]. - The allowance for credit losses to total portfolio loans ratio was 1.51% as of September 30, 2024, compared to 1.52% as of September 30, 2023[81]. Company Overview and Risks - Capital Bancorp, Inc. had total assets of approximately $2.6 billion as of September 30, 2024[89]. - The company operates bank branches in four locations in the greater Washington, D.C. and Baltimore markets, and one branch in Fort Lauderdale, Florida[89]. - Key risks include geopolitical concerns, changes in economic conditions, and competitive pressures on product pricing and services[91]. - The company acknowledges that forward-looking statements may not be accurate and actual results could differ materially from expectations due to various factors[90].

Financial Performance - Net income for the three months ended June 30, 2024 was $8.2 million, a 12.1% increase from $7.3 million in the same period of 2023[119] - Net income for the six months ended June 30, 2024 was $14.8 million, a 13.4% decrease from $17.1 million in the same period of 2023[122] - Total revenue for the three months ended June 30, 2024, was $43,947,000, compared to $42,027,000 for the same period in 2023, reflecting an increase of 4.3%[232] - The return on average assets, as adjusted, was 1.41% for the three months ended June 30, 2024, up from 1.34% in the same period of 2023, reflecting improved profitability[232] - The return on average equity, as adjusted, was 12.62% for the three months ended June 30, 2024, compared to 12.30% in the same period of 2023, indicating enhanced shareholder returns[232] Interest Income and Expenses - Net interest income increased by $1.7 million, or 4.9%, to $37.1 million, primarily due to increased average balances of $190.0 million in portfolio loans[119] - Net interest income for the six months ended June 30, 2024 increased by $2.2 million, or 3.2%, to $72.1 million[122] - Average interest-earning assets increased by $170.1 million, or 8.0%, to $2.3 billion for the three months ended June 30, 2024, compared to the same period in 2023[130] - Average yield on interest-earning assets rose to 8.82%, a 36 basis point increase from 8.46%[130] - Net interest margin decreased by 17 basis points to 6.46% for the three months ended June 30, 2024, due to rising deposit costs outpacing loan yield increases[130] Noninterest Income and Expenses - Noninterest income for the three months ended June 30, 2024 was $6.9 million, a 3.0% increase from $6.7 million in the prior year[120] - Noninterest expenses were $29.5 million for the three months ended June 30, 2024, slightly down from $29.6 million in the same period of 2023[121] - Noninterest income for the six months ended June 30, 2024 was $12.9 million, a 1.2% increase from $12.7 million in the prior year[123] - Noninterest expenses for the six months ended June 30, 2024 were $59.0 million, an increase of 5.7% from $55.8 million in the same period of 2023[124] Credit Losses and Asset Quality - Provision for credit losses for the three months ended June 30, 2024 was $3.4 million, an increase of $0.6 million from the same period in 2023[119] - Provision for credit losses for the six months ended June 30, 2024 was $6.1 million, an increase of 35.9% from the prior year[123] - The allowance for credit losses to total portfolio loans increased to 1.53% as of June 30, 2024, compared to 1.50% as of December 31, 2023, indicating a slight increase in risk provisioning[238] - Nonperforming assets to total assets decreased to 0.58% as of June 30, 2024, down from 0.72% as of December 31, 2023, showing improvement in asset quality[239] - Net charge-offs to average portfolio loans increased to 0.39% for the three months ended June 30, 2024, compared to 0.35% in the same period of 2023, indicating a rise in loan losses[241] Balance Sheet and Capital - Total assets increased to $2,353.868 million as of June 30, 2024, from $2,184.351 million in the prior year[130] - Stockholders' equity rose to $263.425 million as of June 30, 2024, compared to $238.684 million in the previous year[130] - Total liabilities increased by $199.4 million from December 31, 2023, primarily due to a growth in the deposit portfolio of $204.4 million[193] - Total interest-bearing deposits reached $1,415.9 million as of June 30, 2024, an increase from $1,278.6 million at December 31, 2023[194] - The Company reported a Tier 1 leverage ratio of 11.93% and a total capital ratio of 16.98%[219] Loan Portfolio and Credit Risk - Net portfolio loans totaled $2.0 billion as of June 30, 2024, an increase of $118.3 million, or 6.2%, from $1.9 billion at the end of 2023[155] - The allowance for credit losses increased by $2.2 million, or 7.8%, to $30.8 million as of June 30, 2024[155] - The total gross loan portfolio amounted to $2,028.4 million, with residential loans at $601.3 million, commercial loans at $752.7 million, and construction loans at $294.5 million[171] - The company maintains a strong credit review function and risk rating process to manage problem loans effectively[182] - The total allowance for credit losses is allocated among various loan categories, ensuring flexibility to absorb losses from any category[190] Regulatory Compliance and Risk Management - The Bank was classified as "well capitalized" and in compliance with all applicable regulatory capital requirements as of June 30, 2024[216] - The Company intends to monitor and control growth relative to earnings to remain compliant with regulatory capital standards[216] - The Company maintains a reserve for unfunded commitments and certain off-balance sheet credit risks, recorded in other liabilities[221] - The company performs annual stress tests on the construction loan portfolio to monitor underlying real estate conditions and borrower progress[166] - The company monitors trends in sales outcomes versus underwriting valuations as part of ongoing risk management efforts[166]

Net Income of $8.2 million, or $0.59 per share Net Income, as adjusted to exclude the impact of merger-related expenses (non-GAAP)(1), of $8.3 million, or $0.59 per share Net Interest Income increased $2.1 million, or 5.9%, from 1Q 2024 Net Interest Margin ("NIM") increased to 6.46% as compared to 6.24% (1Q 2024) Core NIM, as adjusted to exclude the impact of credit card loans (non-GAAP)(1) increased to 4.00% as compared to 3.85% (1Q 2024) Loan Growth of $57.1 million, or 11.7% annualized for 2Q 2024 Deposi ...

Second Quarter 2024 Results ◦ Net Income, as adjusted to exclude the impact of merger-related expenses (non-GAAP) , of $8.3 million, or $0.59 per share (1) • Net Interest Margin ("NIM") increased to 6.46% as compared to 6.24% (1Q 2024) • Loan Growth of $57.1 million, or 11.7% annualized for 2Q 2024 • Cash dividend of $0.10 per share declared, or 25% higher than the prior quarter The Company also declared a cash dividend on its common stock of $0.10 per share. The dividend is payable on August 21, 2024 to sh ...

ROCKVILLE, Md., July 12, 2024 (GLOBE NEWSWIRE) -- Capital Bank is pleased to announce the appointment of Dominic C. Canuso, CFA, as the new Chief Financial Officer (CFO) for Capital Bancorp, Inc. and Capital Bank, N.A. A seasoned public company executive with a robust background in finance and operations, Mr. Canuso will officially join the organization on July 15, 2024, reporting directly to CEO Ed Barry. Ed Barry, CEO of Capital Bank, commented on the appointment, stating, "We are thrilled to welcome Domi ...