CBNK Reports 4Q EPS of $0.91; 4Q ROA of 1.71% and ROE of 15.23%; FY 2025: Record Earnings, Double-Digit Balance Sheet Growth and a 1.71% ROA

Core Insights - Capital Bancorp, Inc. reported a net income of $15.0 million for 4Q 2025, which is flat compared to 3Q 2025 and represents a significant increase of 99.6% from $7.5 million in 4Q 2024 [2][8] - The company declared a cash dividend of $0.12 per share, payable on February 28, 2026 [3] - The diversified business model of the company has been a source of consistency and strength, enabling high performance across different market conditions [4] Financial Performance - Core net income for 4Q 2025 was $15.0 million, or $0.91 per diluted share, an increase of 18.1% from $12.2 million in 3Q 2025, but a decrease of 2.8% from $15.5 million in 4Q 2024 [8][5] - Net interest income decreased by $1.7 million, or 3.3% from 3Q 2025, but increased by $6.0 million, or 13.4% year-over-year [8][19] - 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 [11] Balance Sheet Highlights - Total assets increased to $3.6 billion at December 31, 2025, up $216.8 million from September 30, 2025, and up $399.3 million, or 12.5%, year-over-year [10] - Gross loans grew by $137.5 million, or 19.3% (annualized), from September 30, 2025, and increased by $329.3 million, or 12.5%, year-over-year [10] - Total deposits reached $3.09 billion, an increase of $180.9 million, or 24.6% (annualized), from September 30, 2025, and up $331.0 million, or 12.0%, year-over-year [10] Credit Quality Metrics - The allowance for credit losses (ACL) coverage ratio was 1.85% at December 31, 2025, a decrease of 3 basis points from September 30, 2025, and flat year-over-year [12] - Nonperforming assets increased to $58.3 million, or 1.62% of total assets, an increase of $6.0 million from September 30, 2025 [13] - Substandard loans totaled $58.5 million, or 2.0% of total portfolio loans, consistent with the previous quarter [21] Efficiency and Return Ratios - The efficiency ratio was 62.3% for 4Q 2025, compared to 60.8% for 3Q 2025 and 66.7% for 4Q 2024 [14] - Return on average assets (ROA) was 1.71% for 4Q 2025, compared to 1.77% for 3Q 2025 and 0.96% for 4Q 2024 [16] - Return on equity (ROE) was 15.23% for 4Q 2025, compared to 15.57% for 3Q 2025 and 8.50% for 4Q 2024 [25]