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].
Capital Bancorp(CBNK) - 2024 Q1 - Quarterly Results