Financial Performance - The company reported net income of $7.5 million, or $0.45 per diluted share, for Q4 2024, a decrease from $8.7 million, or $0.62 per diluted share, in Q3 2024, and $9.0 million, or $0.65 per diluted share, in Q4 2023 [2][11][12] - Adjusted net income, excluding merger-related expenses and other non-recurring items, would have been $15.5 million, or $0.92 per diluted share [2][5][11] - Return on average assets was 0.96%, while return on average equity was 8.50% for Q4 2024 [5][21] Acquisition Impact - The company completed its merger with Integrated Financial Holdings (IFH) on October 1, 2024, which contributed to significant changes in financial metrics [2][6] - The acquisition added $559.4 million in total assets, including $373.5 million in gross loans and $459.0 million in total deposits [14][7] - The merger is expected to enhance the company's loan servicing and government-guaranteed lending capabilities [4][6] Loan and Deposit Growth - Gross loan growth for the quarter was $522.6 million, with $373.5 million attributed to the IFH acquisition and $149.1 million from organic growth, representing an annualized growth rate of 28.2% [5][22] - Total deposits increased by $575.7 million, including $459.0 million from the IFH acquisition, resulting in a 26.3% annualized growth rate [5][20] Interest Income and Expenses - Net interest income rose by $6.0 million, or 15.6%, compared to Q3 2024, driven by increased interest income from loans [15][24] - Interest expense increased by $3.1 million, or 21.9%, primarily due to higher balances in time deposits and borrowed funds [15][24] Noninterest Income and Expenses - Noninterest income totaled $11.9 million, a significant increase from the previous quarter, largely due to contributions from the IFH acquisition [5][15] - Noninterest expenses rose to $37.5 million, reflecting costs associated with the merger, including $2.6 million in merger-related expenses [15][17] Credit Quality Metrics - The allowance for credit losses to total loans ratio was 1.85%, reflecting an increase due to the initial impact from the IFH loan portfolio [5][18] - Nonperforming assets increased to 0.94% of total assets, with total nonaccrual loans rising to $30.2 million [19][25] Capital and Liquidity - The company maintained a common equity tier 1 capital ratio of 13.74%, exceeding regulatory requirements [20] - Cash and cash equivalents increased to $205.3 million, up $48.6 million from the previous quarter [15][20]
Capital Bancorp, Inc. Announces 4Q and Full Year 2024 Results; Successful Close of the IFH Acquisition; Robust Organic Loan and Deposit Growth; Diversified Business Model Drives Strong Performance