CBNK Reports 3Q EPS of $0.89; 3Q ROA of 1.77% and ROE of 15.57%; Continued Strong Growth in Loans and Book Value

Core Insights - Capital Bancorp, Inc. reported a net income of $15.1 million for Q3 2025, an increase from $13.1 million in Q2 2025 and $8.7 million in Q3 2024, with diluted earnings per share rising to $0.89 [4][10] - Core net income for Q3 2025 was $12.2 million, down from $14.2 million in Q2 2025 but up from $9.2 million in Q3 2024 [4][10] - The company declared a cash dividend of $0.12 per share, payable on November 26, 2025 [5] Financial Performance - Net interest income increased by $4.4 million, or 9.2% from Q2 2025, and by $13.7 million, or 35.6% year-over-year, totaling $52.0 million for Q3 2025 [10][19] - Interest income for Q3 2025 was $64.9 million, a slight increase of $0.3 million from Q2 2025 and an increase of $12.3 million year-over-year [10][42] - The net interest margin (NIM) for Q3 2025 was 6.36%, up 32 basis points from Q2 2025 but down 5 basis points from Q3 2024 [19][21] Loan and Deposit Growth - Gross loans grew by $82.2 million, or 11.9% annualized, during Q3 2025, with a year-over-year increase of $714.5 million [7][18] - Total deposits decreased by $28.7 million, or 3.9% annualized, from Q2 2025, but increased by $725.8 million, or 33.2% year-over-year [20] - Customer deposits increased by $3.9 million, or 0.6% annualized, from Q2 2025, and by $641.3 million year-over-year [20] Asset Quality and Credit Metrics - The allowance for credit losses (ACL) coverage ratio was 1.88% at September 30, 2025, an increase of 15 basis points from June 30, 2025 [24] - Nonperforming assets increased to $52.2 million, or 1.54% of total assets, reflecting an increase of $16.1 million from Q2 2025 [24][33] - Substandard loans totaled $56.8 million, or 2.0% of total portfolio loans, compared to $44.6 million, or 1.7% in the previous quarter [24][34] Efficiency and Return Ratios - The efficiency ratio improved to 60.8% for Q3 2025, down from 65.1% in Q2 2025 [25] - Return on average equity (ROE) was 15.57% for Q3 2025, compared to 14.17% in Q2 2025 [31] - Core ROE was 12.56% for Q3 2025, down from 15.33% in Q2 2025 [31] Book Value and Capital Position - Book value per common share increased to $23.80 at September 30, 2025, up $0.88 from Q2 2025 [27] - Tangible book value per share rose to $21.27, a 3.1% increase from Q2 2025 [27] - The Common Equity Tier-1 capital ratio was 13.51% as of September 30, 2025, slightly down from 13.58% at June 30, 2025 [20]