Capital Bancorp(US:CBNK)2026-01-26 21:00Financial Performance - 4Q 2025 net income was $15.0 million, flat compared to 3Q 2025, with earnings per share of $0.91, an increase of $0.02 per share [3]. - Core net income for 4Q 2025 was $15.0 million, or $0.91 per diluted share, up $2.9 million, or 18.1%, from 3Q 2025 [9]. - Net income for Q4 2025 was $15,037,000, a slight decrease of 0.2% from Q3 2025 but a significant increase of 99.6% from Q4 2024 [34]. - Net income for the year ended December 31, 2025, was $57,170,000, compared to $30,972,000 in 2024, reflecting an increase of 84.6% [38]. - Core Net Income for the year ended December 31, 2025, was $56,290,000, compared to $40,069,000 for the year ended December 31, 2024, representing a 40.5% year-over-year increase [61]. Revenue and Income Sources - Total Revenue for Q4 2025 was $62,743,000, slightly down from $63,088,000 in Q3 2025, but up from $56,240,000 in Q4 2024 [59]. - Noninterest income increased by 56.6% year-over-year, totaling $49,187,000 for 2025 compared to $31,410,000 in 2024 [35]. - Total noninterest income for the year ended December 31, 2025, was $49,187,000, significantly higher than $31,410,000 for the previous year, marking a 56.5% increase [38]. - Total fee revenue of $4.8 million increased $0.3 million from the prior quarter, driven by credit-card related fees [29]. Asset and Loan Growth - Total assets reached $3.6 billion at December 31, 2025, an increase of $216.8 million from September 30, 2025, and $399.3 million, or 12.5% year-over-year [14]. - Gross loans grew by $137.5 million, or 19.3% (annualized), during 4Q 2025, and increased by $329.3 million, or 12.5% from 4Q 2024 [3]. - Total portfolio loans receivable, net, rose to $2,959,457,000 in Q4 2025, up from $2,821,983,000 in Q3 2025 and $2,630,163,000 in Q4 2024 [52]. Deposits and Funding - Total deposits increased by $180.9 million, or 24.6% (annualized), from 3Q 2025, and grew by $331.0 million, or 12.0% from 4Q 2024 [3]. - Total deposits were $3.09 billion, up $180.9 million, or 24.6% (annualized) from September 30, 2025, and $331.0 million, or 12.0% year-over-year [15]. - Noninterest-bearing deposits increased to $811,798 thousand as of December 31, 2025, compared to $675,360 thousand a year earlier [43]. Interest Income and Margin - Net interest income for 4Q 2025 was $50.3 million, a decrease of $1.7 million, or 3.3% from 3Q 2025, but an increase of $6.0 million, or 13.4% year-over-year [11]. - Interest income for Q4 2025 reached $68,634,000, an increase of 5.8% from Q3 2025 and 11.2% from Q4 2024 [34]. - The net interest margin (NIM) for 4Q 2025 was 5.94%, a decrease of 42 basis points from the prior quarter, but an increase of 7 basis points year-over-year [17]. Credit Quality and Losses - The allowance for credit losses to total loans (ACL Coverage Ratio) was 1.85% at December 31, 2025, a decrease of 3 basis points from September 30, 2025 [3]. - The provision for credit losses in 4Q 2025 was $4.0 million, a decrease of $0.7 million from 3Q 2025, with net charge-offs totaling $2.4 million, or 0.32% of portfolio loans [11]. - Nonperforming assets were $58.3 million or 1.62% of total assets at December 31, 2025, an increase of $6.0 million or 7 bps compared to September 30, 2025 [20]. Efficiency and Ratios - Efficiency ratio was 62.3% for 4Q 2025, compared to 60.8% for 3Q 2025 and 66.7% for 4Q 2024 [21]. - The Common Equity Tier-1 capital ratio was 12.98% as of December 31, 2025, down from 13.54% at September 30, 2025, while maintaining regulatory capital ratios above requirements [16]. - The total risk-based capital ratio stood at 12.60% in Q4 2025, down from 12.95% in Q3 2025, reflecting a decrease in capital adequacy [52]. Strategic Focus and Future Outlook - The company is focused on executing its strategic plan and investing in technology and human capital for future growth [5]. - The company has indicated that future performance may be affected by various factors, including economic conditions and regulatory changes, as outlined in their forward-looking statements [79][80]. - The company has made strategic acquisitions, including the IFH acquisition, which is expected to contribute to revenue growth and operational integration [80].