Financial Performance - Net income for the year ended December 31, 2024, was $31.0 million, a decrease of $4.9 million, or 13.7%, compared to the prior year[194]. - Net income for the year ended December 31, 2024 was $31.0 million, a decrease of 13.7% compared to $35.9 million in 2023[207]. - Net income decreased to $30,972 thousand in 2024 from $35,871 thousand in 2023, a decline of 13.4%[313]. - Total revenue increased to $186,156 thousand in 2024, compared to $166,501 thousand in 2023, reflecting a growth of 11.8%[313]. Interest Income and Margin - Net interest income increased by $13.2 million to $154.7 million, driven by an increase in average portfolio loans of $325.7 million[194]. - Net interest income increased by $13.2 million, or 9.3%, to $154.7 million, driven by an increase in average portfolio loans of $325.7 million[207]. - The net interest margin decreased by 38 basis points to 6.22% for the year ended December 31, 2024, compared to 6.60% for the prior year[194]. - Net interest margin decreased by 38 basis points to 6.22% for the year ended December 31, 2024[216]. - For the year ended December 31, 2024, total interest income was $30.1 million, an increase of $5.6 million, or 22.9%, compared to $24.5 million in 2023, driven by growth in interest-earning assets and elevated interest rates on portfolio loans[220]. Assets and Liabilities - Total assets increased by $980.7 million, or 44.1%, to $3.2 billion as of December 31, 2024[198]. - Total liabilities increased by $880.5 million from December 31, 2023, primarily due to the IFH acquisition[269]. - Average interest-earning assets increased by $342.4 million, or 16.0%, to $2.5 billion compared to the same period in 2023[195]. - Total interest-bearing deposits rose to $1,951.0 million as of December 31, 2024, up from $1,278.6 million in 2023[271]. Credit Losses and Provisions - The provision for credit losses was $17.7 million, an increase of $8.1 million from the prior year, influenced by organic commercial portfolio loan growth[195]. - Provision for credit losses rose to $17.7 million, an increase of 84.4% from $9.6 million in 2023[207]. - The allowance for credit losses (ACL) increased to $48.7 million as of December 31, 2024, compared to $28.6 million in 2023[268]. - The allowance for credit losses (ACL) as a percentage of portfolio loans was 1.85% at December 31, 2024, compared to 1.50% at December 31, 2023[222]. Noninterest Income and Expenses - Noninterest income increased by $6.4 million, or 25.8%, to $31.4 million, primarily due to contributions from the IFH acquisition[196]. - Noninterest income for 2024 was $31.4 million, up 25.8% from $25.0 million in the prior year, primarily due to contributions from the IFH acquisition[209]. - Noninterest expense increased by $15.5 million, or 14.0%, to $126.2 million, largely due to the IFH acquisition[210]. - Total noninterest expense for 2024 was $126.2 million, an increase of $15.5 million, or 14.0%, from $110.8 million in 2023, primarily due to the IFH acquisition[231]. Equity and Dividends - Stockholders' equity increased to $355.1 million as of December 31, 2024, compared to $254.9 million at December 31, 2023[198]. - Book value per share increased by $3.00, or 16.4%, from $18.31 in 2023 to $21.31 in 2024[235]. - Dividends per share increased by $0.08, or 28.6%, from $0.28 in 2023 to $0.36 in 2024[235]. Acquisitions - The acquisition of IFH on October 1, 2024, added total assets of $559.4 million, including gross loans of $373.5 million[197]. - The company acquired total assets of $559.4 million in connection with the IFH acquisition, including gross loans of $373.5 million[236]. Interest Rate Sensitivity - The bank's interest rate sensitivity position is asset-sensitive, meaning rising interest rates are expected to positively impact net interest income[327]. - The cumulative gap ratio to total earning assets is 35.12% as of December 31, 2024, indicating a significant asset sensitivity[329]. - The Asset/Liability Management Committee (ALCO) regularly reviews interest rate sensitivity and formulates strategies based on perceived levels of interest rate risk[326]. - The bank's exposure to interest rate risk is managed through a combination of static and dynamic simulation models to assess the impact of changing interest rates[329]. Other Financial Metrics - Return on average assets decreased to 1.21% in 2024 from 1.64% in 2023[313]. - Return on average equity decreased to 10.78% in 2024 from 14.91% in 2023[313]. - Core return on average tangible common equity, as adjusted, was 14.36% in 2024, compared to 14.91% in 2023[317].
Capital Bancorp(CBNK) - 2024 Q4 - Annual Report