Capital Bancorp, Inc. Announces Strong First Quarter Results and Successful IFH Conversion; Continued Strong Organic Loan and Deposit Growth; NIM and Fee Income Drives Robust Returns

Core Viewpoint - Capital Bancorp, Inc. reported strong financial performance in the first quarter of 2025, with significant increases in net income, core net income, and growth in loans and deposits, driven by the successful integration of the IFH acquisition and a diversified earnings platform [3][5][10]. Financial Performance - Net income for 1Q 2025 was $13.9 million, or $0.82 per diluted share, compared to $7.5 million, or $0.45 per diluted share in 4Q 2024, and $6.6 million, or $0.47 per diluted share in 1Q 2024 [3][10]. - Core net income for 1Q 2025 was $14.9 million, or $0.88 per diluted share, down from $15.5 million, or $0.92 per diluted share in 4Q 2024 [3][10]. - Return on average assets (ROA) was 1.75%, and return on average equity (ROE) was 15.56% for 1Q 2025, showing significant improvement from previous quarters [6][25]. Growth Metrics - Gross loans increased by $48.2 million, or 7.4% (annualized), during 1Q 2025, with year-over-year growth of $713.9 million [6][18]. - Total deposits grew by $129.4 million, or 19.0% (annualized), from 4Q 2024, and increased by $885.6 million, or 44.2% year-over-year [6][23]. - Customer deposits increased by $154.6 million, or 25.8% (annualized) from 4Q 2024, and $738.5 million year-over-year [6][23]. Interest Income and Margin - Net interest income for 1Q 2025 was $46.0 million, an increase of $1.7 million, or 3.9% (not annualized), from 4Q 2024, and up $11.0 million, or 31.5% year-over-year [11][30]. - Net interest margin (NIM) was 6.05%, up 18 basis points from 4Q 2024, but down 19 basis points year-over-year [19][30]. Asset Quality and Credit Metrics - The allowance for credit losses (ACL) coverage ratio was 1.81% at March 31, 2025, down 4 basis points from 4Q 2024, but up 32 basis points year-over-year [21][22]. - Nonperforming assets increased to 1.21% of total assets at March 31, 2025, compared to 0.94% at December 31, 2024 [22][31]. Capital and Liquidity - Total assets reached $3.3 billion at March 31, 2025, an increase of $142.9 million, or 18.1% (annualized), from December 31, 2024 [16][42]. - The Common Equity Tier-1 capital ratio was 13.33% as of March 31, 2025, exceeding all regulatory capital requirements [16][42]. Dividend Declaration - The company declared a cash dividend of $0.10 per share, payable on May 28, 2025, to shareholders of record on May 12, 2025 [4].