Capital Bancorp(CBNK) - 2024 Q2 - Quarterly Results

Financial Performance - Net income for Q2 2024 was $8.2 million, or $0.59 per diluted share, an increase of 24.2% from $6.6 million, or $0.47 per diluted share in Q1 2024[15]. - For the three months ended June 30, 2024, consolidated net income before taxes was $8,624, an increase from $7,605 for the same period in 2023, representing a year-over-year growth of 13.4%[32]. - Net income for the six months ended June 30, 2024, was $14.77 million, a decrease of 13.4% from $17.05 million in the same period of 2023[64]. - Net income for June 30, 2024, was $8,205,000, an increase of 25% from $6,562,000 in March 31, 2024[133]. - Earnings per diluted share rose to $0.59, up from $0.47 in the previous quarter, reflecting a 25.5% increase[133]. Revenue and Income Growth - Noninterest income rose to $6.9 million, a 15.0% increase from $6.0 million in Q1 2024[10]. - The company’s total revenue for the quarter was $43,947, an increase from $42,027 in the same quarter of 2023, representing a growth of 4.6%[38]. - Total revenue for Q2 2024 was $20.2 million, an increase of $1.3 million from Q1 2024[61]. - Noninterest income for the same period was $6,890, up from $5,972 in 2023, marking a growth of 15.4%[38]. - Total noninterest income for the quarter was $6,890 million, an increase from $5,972 million year-over-year[97]. Asset and Deposit Growth - Total assets as of June 30, 2024, were $2,324,238, up from $2,227,866 as of June 30, 2023, indicating a growth of approximately 4.3%[32]. - Total deposits increased by $94.7 million, or 4.7%, reaching $2.1 billion as of June 30, 2024[26]. - Total deposits at June 30, 2024, were $2.1 billion, an increase of $94.7 million, or 4.7%, from March 31, 2024, and an increase of $166.1 million, or 8.6%, from June 30, 2023[94]. - Average deposits for the three months ended June 30, 2024, increased by $53.2 million, or 2.7%, compared to the three months ended March 31, 2024[94]. Loan Growth and Quality - Loan growth was $57.1 million, representing an annualized growth rate of 11.7% for Q2 2024[1]. - New portfolio loans (excluding credit card loans) originated in the second quarter 2024 totaled $112.3 million with a weighted average yield of 8.25%[49]. - Portfolio loans, excluding credit cards, increased by $47.4 million to $1.9 billion gross at June 30, 2024, compared to March 31, 2024[74]. - Nonperforming Loans to Total Portfolio Loans ratio decreased to 0.70% as of June 30, 2024, from 0.73% in March 31, 2024[46]. - Nonperforming assets decreased to 0.58% of total assets at June 30, 2024, from 0.62% at March 31, 2024[75]. Efficiency and Cost Management - The efficiency ratio improved to 67.11% in Q2 2024, down from 71.95% in Q1 2024[12]. - The efficiency ratio improved to 67.11% for the three months ended June 30, 2024, compared to 71.95% for the same period in 2023, indicating enhanced operational efficiency[38]. - Noninterest expenses totaled $29,493 million, slightly up from $29,487 million, showing a marginal increase of 0.02%[97]. - Noninterest expense for the three months ended June 30, 2024, was $13.8 million, an increase of $0.2 million from the first quarter of 2024[109]. Credit Losses and Provisions - The provision for credit losses was $3.4 million, an increase of $0.7 million from Q1 2024, primarily due to unsecured credit card loan growth[21]. - The provision for credit losses for the six months ended June 30, 2024, was $6.1 million, increasing the allowance for credit losses to $30.8 million, or 1.53% of total loans[93]. - Provision for credit losses increased by 25.3% to $3.4 million in Q2 2024 compared to Q1 2024[63]. - The allowance for credit losses was $30,832 million, compared to $29,350 million in the previous quarter, indicating a rise in provisions[98]. Capital and Equity - The total risk-based capital ratio was 14.51%, slightly up from 14.36% in the previous quarter, indicating strong capital adequacy[133]. - Stockholders' equity increased to $267.9 million as of June 30, 2024, compared to $237.4 million at June 30, 2023[123]. - Retained earnings increased to $225,824 million, up from $218,731 million, reflecting a growth of 2.5%[98]. Mergers and Acquisitions - The pending acquisition of Integrated Financial Holdings, Inc. incurred pre-tax merger-related expenses of $0.1 million in Q2 2024, down from $0.7 million in Q1 2024[4]. - The company is actively pursuing a merger with IFHI, which may impact future business opportunities and strategies[165]. Market Presence - The company operates bank branches in four locations in the greater Washington, D.C. and Baltimore markets, indicating ongoing market expansion efforts[164].