"We want to ensure that our customers have access to the best banking services available," added Barry. "With our new, state-of-the-art branch, we are poised to deliver on that promise and continue our tradition of excellence in customer service." We encourage our customers to visit the new branch, meet our staff and experience the enhanced amenities it has to offer. About Capital Bank, N.A.: Operating for over 25 years in the DC Metro Region, Capital Bank has carved a reliable niche in the financial landsc ...

ROCKVILLE, Md., May 21, 2024 (GLOBE NEWSWIRE) -- Capital Bank, N.A., a leading provider of financial services in the greater Washington, D.C. metropolitan area, is thrilled to announce the relocation and expansion of its Reston branch to better serve the needs of its valued customers and the dynamic local business community. The brand-new branch is located at 1900 Campus Commons Dr, Suite 130, Reston, VA 20191, replacing the former location at 10700 Parkridge Blvd # 180, Reston, VA and opened its doors on M ...

PART I - CONSOLIDATED FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements (Unaudited)](index=2&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements for Capital Bancorp, Inc. as of March 31, 2024, including balance sheets, statements of income, comprehensive income, changes in stockholders' equity, and cash flows, along with detailed notes on accounting policies and financial accounts [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets increased to $2.32 billion from $2.23 billion at year-end 2023, driven primarily by a $60.5 million increase in net portfolio loans, with total liabilities growing to $2.06 billion, funded by a $109.7 million increase in deposits, and total stockholders' equity rising slightly to $259.5 million Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$2,324,238** | **$2,226,176** | | Total Portfolio Loans, Net | $1,935,175 | $1,874,678 | | **Total Liabilities** | **$2,064,773** | **$1,971,316** | | Total Deposits | $2,005,695 | $1,895,996 | | **Total Stockholders' Equity** | **$259,465** | **$254,860** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) For the three months ended March 31, 2024, net income was $6.6 million, a decrease from $9.7 million in the prior year period, with diluted earnings per share falling to $0.47 from $0.68, primarily due to a higher provision for credit losses and increased noninterest expenses, including merger-related costs Q1 2024 vs Q1 2023 Income Statement (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net Interest Income | $35,008 | $34,487 | | Provision for Credit Losses | $2,727 | $1,660 | | Noninterest Income | $5,972 | $6,026 | | Noninterest Expenses | $29,487 | $26,222 | | **Net Income** | **$6,562** | **$9,735** | | **Diluted Earnings Per Share** | **$0.47** | **$0.68** | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on the Company's operations, accounting policies, and financial statement line items, covering the pending acquisition of Integrated Financial Holdings, Inc., the composition of investment securities and loan portfolios, the methodology for the allowance for credit losses (ACL), and segment reporting details - The Company operates through four business segments: **commercial banking, mortgage lending (Capital Bank Home Loans), credit cards (OpenSky™), and corporate activities**[178](index=178&type=chunk) - On March 27, 2024, the Company entered into a merger agreement to acquire Integrated Financial Holdings, Inc. ("IFHI"). The merger is expected to close in **Q4 2024**, and the Company incurred **$0.7 million** in related expenses during **Q1 2024**[74](index=74&type=chunk)[75](index=75&type=chunk) - As of March 31, 2024, the investment securities portfolio, valued at **$202.3 million**, was entirely classified as available for sale. Management concluded there were no credit-related declines in fair value requiring an allowance[79](index=79&type=chunk)[83](index=83&type=chunk) - The Allowance for Credit Losses (ACL) increased to **$29.4 million** at March 31, 2024, from **$28.6 million** at year-end 2023, with a provision expense of **$2.7 million** for the quarter[88](index=88&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the Company's financial performance for Q1 2024, highlighting a **32.6% decrease** in net income to **$6.6 million** year-over-year, driven by higher credit provisions and noninterest expenses, while covering analysis of net interest income, asset quality, balance sheet growth, the pending acquisition of IFHI, capital adequacy, and liquidity position [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Net income for Q1 2024 was $6.6 million, down from $9.7 million in Q1 2023, with net interest income seeing a modest increase of 1.5% to $35.0 million, offset by a 64.3% increase in the provision for credit losses to $2.7 million and a 12.5% rise in noninterest expenses to $29.5 million, which included $0.7 million in merger-related costs Key Performance Metrics Q1 2024 vs Q1 2023 (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income | $6,562 | $9,735 | | Net Interest Income | $35,008 | $34,487 | | Provision for Credit Losses | $2,727 | $1,660 | | Noninterest Expense | $29,487 | $26,222 | - Net income, as adjusted (non-GAAP) to exclude merger-related expenses, was **$7.1 million** for **Q1 2024**[266](index=266&type=chunk) - The net interest margin decreased by **41 basis points** to **6.24%** year-over-year, primarily due to a **$1.4 million** decrease in interest income from credit cards and higher funding costs[276](index=276&type=chunk) [Financial Condition](index=41&type=section&id=Financial%20Condition) As of March 31, 2024, total assets grew to $2.32 billion, a **4.4% increase** from year-end 2023, primarily driven by a **3.2% growth** in the net loan portfolio to $2.0 billion, with deposits increasing by **5.8%** to $2.01 billion, funding the asset growth, and asset quality remaining stable, with the allowance for credit losses at **1.49%** of total loans, and stockholders' equity increasing by **1.8%** to **$259.5 million** Balance Sheet Summary (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | $2,324,238 | $2,226,176 | | Portfolio Loans Receivable, Net | $1,964,525 | $1,903,288 | | Total Deposits | $2,005,695 | $1,895,996 | | Total Stockholders' Equity | $259,465 | $254,860 | - Nonperforming loans as a percentage of total portfolio loans decreased to **0.73%** at March 31, 2024, compared to **0.91%** at March 31, 2023[48](index=48&type=chunk) [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) The Company maintains a strong liquidity position with diverse funding sources, including a core deposit base and significant available borrowing capacity of $447.7 million from the FHLB and $76.0 million from correspondent banks, while capital levels remain robust, with the Bank classified as "well capitalized" under regulatory standards, and its Total capital ratio at **14.36%** as of March 31, 2024, well above the **10.00%** minimum - As of March 31, 2024, the Company had significant available liquidity, including **$447.7 million** in borrowing capacity from the FHLB, **$17.9 million** from the Federal Reserve, and **$76.0 million** from correspondent banks[34](index=34&type=chunk) Bank Regulatory Capital Ratios (March 31, 2024) | Ratio | Actual | Minimum to be Well Capitalized | | :--- | :--- | :--- | | Tier 1 leverage ratio | 10.29% | 5.00% | | Common equity tier 1 capital ratio | 13.10% | 6.50% | | Tier 1 capital ratio | 13.10% | 8.00% | | Total capital ratio | 14.36% | 10.00% | - Stockholders' equity increased by **$4.6 million** during the quarter, primarily due to net income of **$6.6 million**, partially offset by **$1.4 million** in share repurchases[33](index=33&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company's primary market risk is interest rate volatility, managed by the Asset/Liability Management Committee (ALCO) through Earnings at Risk (EAR) and Economic Value of Equity (EVE) simulations, with the Company being asset-sensitive for periods less than one year as of March 31, 2024, indicating that net interest income would generally benefit from rising interest rates, and a **+200 basis point** parallel interest rate shock projected to increase net interest income by **3.2%** over a 12-month horizon - The Company's primary market risk is **interest rate volatility**, which it manages by structuring its balance sheet in the ordinary course of business without using complex derivatives like leveraged derivatives or financial futures[98](index=98&type=chunk)[100](index=100&type=chunk) Impact on Net Interest Income from Parallel Interest Rate Shock (March 31, 2024) | Rate Shock (bps) | % Change in NII | | :--- | :--- | | +400 | 6.3% | | +300 | 4.7% | | +200 | 3.2% | | +100 | 1.6% | | -100 | (1.7)% | | -200 | (2.9)% | - For periods less than one year, the Company has an **asset-sensitive position**, meaning rate-sensitive assets exceed rate-sensitive liabilities. This suggests rising interest rates would generally have a **positive effect on net interest income**[101](index=101&type=chunk) [Item 4. Controls and Procedures](index=64&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the Principal Executive Officer and Principal Financial Officer, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2024, with enhancements made during the first quarter of 2024 to internal controls over the allowance for credit losses, specifically around model validation and output review - The Principal Executive Officer and Principal Financial Officer concluded that the Company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[185](index=185&type=chunk) - During **Q1 2024**, the Company enhanced internal controls over the allowance for credit losses, including process controls for **model validation and allowance output review**[186](index=186&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings) The Company is not currently a party to any material legal proceedings outside of the ordinary course of business - The Company is not presently a party to any **material legal proceedings**[219](index=219&type=chunk) [Item 1A. Risk Factors](index=65&type=section&id=Item%201A.%20Risk%20Factors) There are no material changes to the risk factors disclosed in the Company's 2023 Form 10-K, except for new risks related to the proposed merger with Integrated Financial Holdings, Inc. (IFHI), including the potential for substantial merger and integration costs, the negative impact on the Company if the merger fails to complete, and challenges related to integrating IFHI's operations - New risk factors have been introduced related to the **proposed merger with IFHI**[220](index=220&type=chunk) - Risks include incurring **substantial costs for the merger**, potential **negative market reaction if the merger fails**, and **difficulties in integrating the two companies' businesses and realizing anticipated benefits**[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=67&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company did not conduct any unregistered sales of its stock during the period, but repurchased **67,869 shares** under its stock repurchase program during the three months ended March 31, 2024, with repurchases temporarily suspended during the first quarter in connection with the pending acquisition of IFHI Share Repurchases in Q1 2024 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Feb 2024 | 46,820 | $20.77 | | Mar 2024 | 21,049 | $20.28 | - The Company temporarily suspended its stock repurchase program during **Q1 2024** due to the pending acquisition of IFHI[254](index=254&type=chunk)

ROCKVILLE, Md., May 07, 2024 (GLOBE NEWSWIRE) -- Capital Bank (NASDAQ:CBNK), a prominent financial institution serving the DC Metro area, is proud to announce the appointment of Jim Witty as Senior Vice President - Director of Contractor Banking. With a commercial banking career spanning over 30 years, many spent in leadership roles, Jim has a strong track record of helping businesses grow, driving strategic objectives, and fostering long-lasting relationships with his clients. "We are excited to welcome Ji ...

ROCKVILLE, Md., May 01, 2024 (GLOBE NEWSWIRE) -- Capital Bank (NASDAQ:CBNK) is pleased to announce the appointment of Todd Warren as Senior Vice President and Market Executive for the Greater Chesapeake and Baltimore regions. With over 26 years in banking, Mr. Warren brings invaluable expertise and insights to the bank. Mr. Warren will play a key role in Capital Bank's C&I growth strategy by leading two C&I teams in Baltimore and Columbia, MD. "Todd's extensive industry knowledge and deep community connecti ...

Capital Bancorp (CBNK) came out with quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.68 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.92%. A quarter ago, it was expected that this company would post earnings of $0.62 per share when it actually produced earnings of $0.65, delivering a surprise of 4.84%.Over the last four quarters, the company h ...

Financial Performance - Net income for Q1 2024 was $6.6 million, or $0.47 per diluted share, a decrease from $9.0 million, or $0.65 per diluted share in Q4 2023[20]. - Net income for the three months ended March 31, 2024, was $6.6 million, down from $9.0 million in the previous quarter[50]. - Net income for March 31, 2024, was $6,562,000, a decrease of 27.3% from $9,030,000 in December 31, 2023[112]. - Adjusted net income for March 31, 2024, was $7,100,000, compared to $9,030,000 in the previous quarter, reflecting a decline of 21.4%[112]. - Earnings per share (diluted) for Q1 2024 was $0.47, down 27.7% from $0.65 in Q4 2023[72]. - The return on average assets was 1.15%, down from 1.84% in the previous year, indicating a decline in profitability[105]. - Return on average assets (ROAA) for March 31, 2024, was 1.15%, down from 1.63% in the previous quarter, indicating a decline of 29.4%[112]. - Total revenue for March 31, 2024, was $40,980,000, slightly up from $40,825,000 in December 31, 2023, reflecting an increase of 0.4%[112]. Asset and Loan Growth - Total assets increased to $2.3 billion at March 31, 2024, up $98.1 million, or 4.4%, from December 31, 2023[31]. - Total portfolio loans reached $2.0 billion, an increase of $61.2 million, representing 12.9% annualized growth from December 31, 2023[23]. - Portfolio loans receivable increased to $1,970,657 thousand from $1,910,930 thousand at December 31, 2023[1]. - Average portfolio loans increased to $1.93 billion for the quarter ended March 31, 2024, compared to $1.86 billion for the previous quarter[119]. - Total portfolio loans reached $1.96 billion as of March 31, 2024, an increase from $1.90 billion at December 31, 2023[119]. Deposits and Funding - Deposits totaled $2.0 billion, up $109.7 million, or 5.8%, from December 31, 2023[14]. - Total deposits reached $2,005.7 million, up 3.2% from $1,895.996 million in the previous quarter[81]. - Noninterest-bearing deposits increased by $48.4 million, or 7.8%, to $665.8 million compared to December 31, 2023[63]. - Average borrowed funds increased by $17.1 million, or 41.0%, compared to December 31, 2023[11]. - Uninsured deposits were approximately $855.7 million, representing 42.7% of the Company's deposit portfolio as of March 31, 2024, up from 41.6% at December 31, 2023[49]. Income and Expenses - Noninterest income for Q1 2024 was $6.0 million, a slight increase from $5.9 million in Q4 2023[20]. - Noninterest income decreased by $0.1 million, or 0.9%, to $6.0 million compared to the same period in 2023, with mortgage banking revenue increasing by $0.3 million[46]. - Noninterest expense increased by $3.3 million, or 12.5%, to $29.5 million compared to the same period in 2023, driven by higher advertising and merger-related expenses[47]. - Noninterest income totaled $5,972 thousand, with noninterest expenses at $29,487 thousand[84]. Credit Quality - The provision for credit losses was $2.7 million, a decrease of $0.1 million from Q4 2023[29]. - The provision for credit losses increased to $2.7 million, up $1.1 million from the same period in 2023, primarily due to loan growth[75]. - Nonperforming assets decreased to 0.62% of total assets, down 10 basis points from 0.72% at December 31, 2023, with nonaccrual loans decreasing to $14.4 million[38]. - Nonperforming assets to total assets ratio improved to 0.62% from 0.73% year-over-year, indicating better asset quality[105]. - Net charge-offs for the three months ended March 31, 2024, were $2.0 million, or 0.41% on an annualized basis of average portfolio loans[75]. - Net charge-offs totaled $1.99 million for the quarter ended March 31, 2024, compared to $2.48 million for the previous quarter[119]. Capital and Efficiency - The common equity tier 1 capital ratio was reported at 14.92% as of March 31, 2024, down from 15.43% at December 31, 2023[65]. - Total stockholders' equity rose to $259.5 million as of March 31, 2024, compared to $254.9 million at December 31, 2023[99]. - The efficiency ratio for Q1 2024 was 71.95%, compared to 64.72% for Q1 2023[6]. - The efficiency ratio for March 31, 2024, was 71.95%, up from 65.91% in the previous quarter, indicating a decline in operational efficiency[112]. - The net interest margin decreased to 6.24% for Q1 2024, compared to 6.40% for Q4 2023[62]. - The net interest margin for the quarter was 6.24%, down from 6.65% in the previous year[105]. Company Overview - The company announced the acquisition of Integrated Financial Holdings, Inc. to diversify its business and enhance capabilities[1]. - The company operates bank branches in four locations in the greater Washington, D.C. and Baltimore markets[121]. - Capital Bancorp has been providing financial services since 1999[121]. - The company’s common stock is traded on the NASDAQ Global Market under the symbol "CBNK"[121].

Investors are always looking for stocks that are poised to beat at earnings season and Capital Bancorp, Inc. (CBNK) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Capital Bancorpis seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pret ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Capital Bancorp (CBNK) . This company, which is in the Zacks Banks - Northeast industry, shows potential for another earnings beat.When looking at the last two reports, this company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 14.92%, on average, in the last two quarters.Fo ...

The market expects Capital Bancorp (CBNK) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they ...