Capital Bancorp(CBNK) - 2024 Q4 - Annual Results

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]