Capital Bancorp, Inc. Posts Broad Based Growth Leading to a Sharp Profitability Increase
Capital Bancorp (NASDAQ: CBNK) reported Q3 2024 net income of $8.7 million ($0.62 per share), up from $8.2 million in Q2 2024. Net income adjusted for merger expenses was $9.2 million ($0.66 per share). Key highlights include: net interest income increased $1.3 million (3.5%) to $38.4 million, loan growth of $85.9 million (16.9% annualized), and deposit growth of $85.8 million (16.2% annualized). The company completed its merger with Integrated Financial Holdings on October 1, 2024. Tangible book value per share increased 4.5% to $20.13, and the company declared a $0.10 cash dividend.
Capital Bancorp (NASDAQ: CBNK) ha riportato un reddito netto per il terzo trimestre del 2024 di 8,7 milioni di dollari (0,62 dollari per azione), in aumento rispetto agli 8,2 milioni di dollari del secondo trimestre 2024. Il reddito netto, al netto delle spese per fusioni, è stato di 9,2 milioni di dollari (0,66 dollari per azione). I punti salienti includono: un aumento del reddito da interessi netti di 1,3 milioni di dollari (3,5%) a 38,4 milioni di dollari, una crescita dei prestiti di 85,9 milioni di dollari (16,9% annualizzato) e una crescita dei depositi di 85,8 milioni di dollari (16,2% annualizzato). L'azienda ha completato la sua fusione con Integrated Financial Holdings il 1° ottobre 2024. Il valore contabile tangibile per azione è aumentato del 4,5% a 20,13 dollari, e l'azienda ha dichiarato un dividendo in contante di 0,10 dollari.
Capital Bancorp (NASDAQ: CBNK) reportó un ingreso neto de 8,7 millones de dólares ($0,62 por acción) en el tercer trimestre de 2024, un aumento respecto a los 8,2 millones de dólares del segundo trimestre de 2024. El ingreso neto ajustado por gastos de fusión fue de 9,2 millones de dólares ($0,66 por acción). Los puntos destacados incluyen: un aumento en los ingresos por intereses netos de 1,3 millones de dólares (3,5%) a 38,4 millones de dólares, un crecimiento de los préstamos de 85,9 millones de dólares (16,9% anualizado) y un crecimiento de los depósitos de 85,8 millones de dólares (16,2% anualizado). La compañía completó su fusión con Integrated Financial Holdings el 1 de octubre de 2024. El valor contable tangible por acción aumentó un 4,5% a 20,13 dólares, y la empresa declaró un dividendo en efectivo de 0,10 dólares.
Capital Bancorp (NASDAQ: CBNK)는 2024년 3분기 순이익이 870만 달러(주당 0.62달러)로, 2024년 2분기의 820만 달러에서 증가했다고 보고했습니다. 합병 비용을 조정한 순이익은 920만 달러(주당 0.66달러)였습니다. 주요 하이라이트로는: 순이자 수익이 130만 달러(3.5%) 증가하여 3840만 달러에 이르고, 대출 증가가 8590만 달러(연율 16.9%)이며, 예금 증가가 8580만 달러(연율 16.2%)입니다. 회사는 2024년 10월 1일 Integrated Financial Holdings와의 합병을 완료했습니다. 주당 눈에 보이는 장부가치는 4.5% 증가하여 20.13달러에 도달하였으며, 회사는 0.10달러의 현금 배당금을 선언했습니다.
Capital Bancorp (NASDAQ: CBNK) a annoncé un revenu net au troisième trimestre 2024 de 8,7 millions de dollars (0,62 dollar par action), en hausse par rapport aux 8,2 millions de dollars du deuxième trimestre 2024. Le revenu net ajusté des frais de fusion s'élevait à 9,2 millions de dollars (0,66 dollar par action). Les points saillants incluent : un revenu d'intérêts nets en hausse de 1,3 million de dollars (3,5%) à 38,4 millions de dollars, une croissance des prêts de 85,9 millions de dollars (16,9% annualisé) et une croissance des dépôts de 85,8 millions de dollars (16,2% annualisé). L'entreprise a complété sa fusion avec Integrated Financial Holdings le 1er octobre 2024. La valeur comptable tangible par action a augmenté de 4,5% pour atteindre 20,13 dollars, et l'entreprise a déclaré un dividende en espèces de 0,10 dollar.
Capital Bancorp (NASDAQ: CBNK) gab bekannt, dass der Nettoertrag im dritten Quartal 2024 bei 8,7 Millionen US-Dollar (0,62 US-Dollar pro Aktie) lag, was einem Anstieg von 8,2 Millionen US-Dollar im zweiten Quartal 2024 entspricht. Der netto adjustierte Gewinn für Fusionkosten betrug 9,2 Millionen US-Dollar (0,66 US-Dollar pro Aktie). Zu den wichtigsten Highlights gehören: Der Nettzinsüberschuss erhöhte sich um 1,3 Millionen US-Dollar (3,5%) auf 38,4 Millionen US-Dollar, das Kreditwachstum betrug 85,9 Millionen US-Dollar (annualisiert 16,9%) und das Einlagenwachstum lag bei 85,8 Millionen US-Dollar (annualisiert 16,2%). Das Unternehmen hat am 1. Oktober 2024 seine Fusion mit Integrated Financial Holdings abgeschlossen. Der tangible Buchwert pro Aktie stieg um 4,5% auf 20,13 US-Dollar, und das Unternehmen erklärte eine Dividende von 0,10 US-Dollar in bar.
- Net income increased 5.7% to $8.7 million QoQ
- Net interest income grew 3.5% to $38.4 million QoQ
- Strong loan growth of $85.9 million (16.9% annualized)
- Solid deposit growth of $85.8 million (16.2% annualized)
- Tangible book value per share increased 4.5% to $20.13
- Net interest margin decreased to 6.41% from 6.46% QoQ
- Net charge-offs increased $0.8 million QoQ
- Noninterest income decreased $0.3 million QoQ
- Year-over-year net income declined 11.4%
Insights
Strong quarter with broad-based growth across key metrics. Net income increased to
- Net interest income up
3.5% to$38.4 million - Loan growth of
$85.9 million (16.9% annualized) - Deposit growth of
$85.8 million with strong noninterest-bearing deposit increase - Tangible book value per share up
4.5% to$20.13
Asset quality remains stable with allowance for credit losses at
Third Quarter 2024 Results
- Net Income of
$8.7 million , or$0.62 per share- Net Income, as adjusted to exclude the impact of merger-related expenses (non-GAAP)(1), of
$9.2 million , or$0.66 per share
- Net Income, as adjusted to exclude the impact of merger-related expenses (non-GAAP)(1), of
- Tangible Book Value Per Share(1) of
$20.13 , increased4.5% , or$0.87 as compared to$19.26 (2Q 2024). - Net Interest Income increased
$1.3 million , or3.5% (not annualized), from 2Q 2024 - Net Interest Margin ("NIM") decreased to
6.41% as compared to6.46% (2Q 2024)- Core NIM, as adjusted to exclude the impact of credit card loans (non-GAAP)(1) increased to
4.08% as compared to4.00% (2Q 2024)
- Core NIM, as adjusted to exclude the impact of credit card loans (non-GAAP)(1) increased to
- Loan Growth of
$85.9 million , or16.9% annualized for 3Q 2024 - Deposit Growth of
$85.8 million , or16.2% annualized for 3Q 2024; Noninterest bearing deposits increased$33.5 million , or19.5% annualized from 2Q 2024 - Cash dividend of
$0.10 per share declared
ROCKVILLE, Md., Oct. 28, 2024 (GLOBE NEWSWIRE) -- Capital Bancorp, Inc. (the "Company") (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the "Bank"), today reported net income of
The Company also declared a cash dividend on its common stock of
“We continue to benefit from our diversified business which is driving growth across our platforms," said Ed Barry, Chief Executive Officer of the Company and the Bank. "With the changing interest rate environment, our core margin has inflected. The acquisition of Integrated Financial Holdings, Inc. is now complete and we are now focused on integration and unlocking opportunity out of their complementary lines of business."
"The Bank continues to execute on its smart growth strategy as reflected by the impressive year-to-date and third quarter growth in commercial bank loan balances and deposits, both interest bearing and non-interest bearing. Our diversified profit centers complement one another and our recent acquisition of IFH adds an additional high potential opportunity for growth,” said Steven J Schwartz, Chairman of the Company. “In addition, our quarter-over-quarter
(1) Reconciliations of the non–U.S. generally accepted accounting principles ("GAAP") measures are set forth in the Appendix at the end of this press release.
Acquisition of Integrated Financial Holdings, Inc.
On October 1, 2024, the Company completed its previously announced merger with Integrated Financial Holdings, Inc. ("IFHI"). Pursuant to the terms of the Merger Agreement, each share of IFHI’s common stock, par value
In the first nine months of 2024, the Company incurred pre-tax merger-related expenses of
The following table provides a reconciliation of the Company's net income under GAAP to non-GAAP results excluding merger-related expenses.
| Third Quarter 2024 | Second Quarter 2024 | ||||||||||||||||||||||||||||||
| (in thousands, except per share data) | Income Before Income Taxes | Income Tax Expense (Benefit) | Net Income | Diluted Earnings per Share | Income Before Income Taxes | Income Tax Expense | Net Income | Diluted Earnings per Share | |||||||||||||||||||||||
| GAAP Earnings | $ | 11,499 | $ | 2,827 | $ | 8,672 | $ | 0.62 | $ | 10,933 | $ | 2,728 | $ | 8,205 | $ | 0.59 | |||||||||||||||
| Add: Merger-Related Expenses | 520 | (37 | ) | 557 | 83 | 21 | 62 | ||||||||||||||||||||||||
| Non-GAAP Earnings | $ | 12,019 | $ | 2,790 | $ | 9,229 | $ | 0.66 | $ | 11,016 | $ | 2,749 | $ | 8,267 | $ | 0.59 | |||||||||||||||
| Nine Months Ended September 30, 2024 | |||||||||||||||
| (in thousands, except per share data) | Income Before Income Taxes | Income Tax Expense | Net Income | Diluted Earnings per Share | |||||||||||
| GAAP Earnings | $ | 31,056 | $ | 7,617 | $ | 23,439 | $ | 1.69 | |||||||
| Add: Merger-Related Expenses | 1,315 | 158 | 1,157 | ||||||||||||
| Non-GAAP Earnings | $ | 32,371 | $ | 7,775 | $ | 24,596 | $ | 1.77 | |||||||
Note: The tax benefit associated with merger-related expenses has been adjusted to reflect the estimated nondeductible portion of the expenses.
Third Quarter 2024 Highlights
Earnings Summary
Net income of
- Net interest income of
$38.4 million increased$1.3 million , or3.5% , compared to the second quarter 2024.- Interest income of
$52.6 million increased$2.0 million , or3.9% , over the second quarter 2024 primarily from$1.7 million in portfolio loan interest income, as growth in average balances increased$61.0 million . Interest income from interest-bearing deposits held at other financial institutions increased$0.2 million , as average balances increased$14.0 million to$91.1 million . - Interest expense of
$14.3 million increased$0.7 million , or5.1% over the second quarter 2024 due to increases in customer money market deposits and time deposits of$0.4 million and$0.3 million , respectively. Average balances increased$27.0 million and$14.0 million , respectively.
- Interest income of
- The provision for credit losses was
$3.7 million , an increase of$0.3 million from the second quarter 2024 primarily driven by unsecured credit card loan growth in the quarter. Net charge-offs totaled$2.7 million in the third quarter including$1.7 million from credit card related loans,$0.6 million from commercial real estate, and$0.4 million from commercial and industrial loans. The$0.8 million net charge-offs increase quarter over quarter includes$0.6 million from a commercial loan charge-off that was fully reserved for, and$0.2 million from higher credit card loans. At September 30, 2024, the allowance for credit losses to total loans ratio was1.51% , down 2 basis points from the ratio at June 30, 2024. - Noninterest income of
$6.6 million decreased$0.3 million as compared to the second quarter 2024 primarily due to decreased credit card fees of$0.3 million . - Noninterest expense of
$29.7 million increased$0.2 million as compared to the second quarter 2024. Noninterest expense of$29.2 million , excluding merger-related expenses of$0.5 million , decreased$0.2 million as compared to the second quarter 2024. Variances include:- Advertising expense of
$1.2 million decreased$0.8 million off of seasonally high second quarter levels. - Professional fees of
$2.0 million increased$0.2 million primarily related to increased non-merger-related legal fees. - Other expense categories increased
$0.4 million including slight increases from data and loan processing expense and operational losses.
- Advertising expense of
- Income tax expense of
$2.8 million , or24.6% of pre-tax income for the third quarter 2024, increased$0.1 million from$2.7 million , or25.0% of pre-tax income for the second quarter 2024.
Balance Sheet
Total assets of
- Cash and cash equivalents of
$156.7 million at September 30, 2024 increased$20.2 million from June 30, 2024, as total deposits increased$85.8 million , and Federal Home Loan Bank advances increased$20.0 million , partially offset by an increase in total portfolio loans of$85.9 million . - Total portfolio loans of
$2.1 billion at September 30, 2024 increased$85.9 million , or4.3% (not annualized) from June 30, 2024. Total average loans increased$61.0 million quarter over quarter.- Owner-occupied commercial real estate loans increased
$32.1 million , or10.0% (not annualized) from June 30, 2024. - The average portfolio loans-to-deposit ratio of
98.20% for the three months ended September 30, 2024 remained stable.
- Owner-occupied commercial real estate loans increased
- Total deposits of
$2.2 billion at September 30, 2024 increased$85.8 million , or4.1% (not annualized), from June 30, 2024, The increase includes$40.4 million of customer time deposits,$33.5 million of noninterest-bearing deposits primarily related to growth in title company deposit balances and$14.1 million of growth in customer money market deposits.- Uninsured and unprotected deposits were approximately
$645.6 million as of September 30, 2024, representing29.5% of the Company's deposit portfolio. - Low and no interest bearing deposits of
$988.4 million increased$33.5 million , or3.5% (not annualized) from June 30, 2024. Average noninterest-bearing deposits of$680.7 million increased$27.7 million , or4.2% (not annualized), and represented32.6% of total average deposits at September 30, 2024.
- Uninsured and unprotected deposits were approximately
- The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of
$208.7 million , or8.1% of total assets, an effective duration of 3.0 years, with U.S. Treasury Securities representing61.8% of the overall investment portfolio at September 30, 2024. The AOCI on the investment securities portfolio decreased$4.5 million during the quarter to a negative$8.6 million as of September 30, 2024, which represents3.1% of total stockholders' equity. The Company does not have a held-to-maturity investment securities portfolio. - Liquidity - The Company maintains stable and reliable sources of available borrowings consistent with prior quarter. Sources of available borrowings at September 30, 2024 totaled
$691.8 million , including available collateralized lines of credit of$500.4 million , unsecured lines of credit with other banks of$76.0 million and unpledged investment securities available as collateral for potential additional borrowings of$115.4 million . - Capital Positions - As of September 30, 2024, the Company reported a robust common equity tier 1 capital ratio of
14.78% , compared to15.08% at June 30, 2024. At September 30, 2024, the Company and the Bank maintain regulatory capital ratios that exceed all capital adequacy requirements.
Financial Metrics
Net Interest Margin - Net interest margin decreased 5 basis points to
- The average yield on interest earning assets of
8.79% decreased 3 basis points compared to the prior quarter. The yield on portfolio loans, as adjusted to exclude the impact of OpenSky™ credit card loans (non-GAAP)(1), of7.15% for the third quarter 2024, increased 11 basis points primarily from portfolio turnover. - The total cost of deposits increased 3 basis points to
2.64% for the third quarter 2024 as compared to the prior quarter. - The total cost of interest-bearing deposits increased 5 basis points to
3.92% for the third quarter 2024 as compared to the prior quarter.
Efficiency Ratios – The efficiency ratio was
Credit Metrics and Asset Quality - Overall credit performance remains stable with the allowance for credit losses to total loans ratio decreasing 2 basis points to
Performance Ratios – Annualized return on average assets ("ROAA") and annualized return on average equity ("ROAE") were
- Annualized ROAA and annualized ROAE, as adjusted to exclude the impact of merger-related expenses (non-GAAP)(1), were
1.51% and13.40% , respectively, for the three months ended September 30, 2024, compared to1.41% and12.62% , respectively, for the three months ended June 30, 2024.
Consistent Tangible Book Value Growth - Tangible book value per common share(1) grew
Commercial Bank
Continued Portfolio Loan Growth - Gross portfolio loans, excluding OpenSky™ credit card loans, increased
The
Net Interest Income - Interest income of
Credit Metrics - Nonperforming assets increased 2 basis point to
The following tables present non-owner-occupied and owner-occupied commercial real estate loans and multi-family loans and the weighted average loan-to-value ("LTV").
Non-owner-occupied commercial real estate loans, including multi-family
| As of September 30, 2024 | ||||||||||||||||
| (in thousands) | Amount | Average Loan Size | Weighted Average LTV(1) | % of Non-Owner-Occupied Commercial Real Estate Loans | % of Total Portfolio Loans, Gross | |||||||||||
| Loan type: | ||||||||||||||||
| Multi-family | $ | 170,513 | $ | 1,853 | 58.1 | % | Not Applicable | 8.1 | % | |||||||
| Retail | $ | 116,324 | $ | 1,454 | 56.6 | % | 28.8 | % | 5.5 | % | ||||||
| Mixed use | 96,337 | 1,189 | 52.8 | % | 23.9 | % | 4.6 | % | ||||||||
| Hotel | 74,343 | 4,130 | 52.4 | % | 18.4 | % | 3.5 | % | ||||||||
| Industrial | 63,109 | 1,127 | 54.2 | % | 15.6 | % | 3.0 | % | ||||||||
| Office | 13,356 | 557 | 63.2 | % | 3.3 | % | 0.6 | % | ||||||||
| Other | 40,018 | 1,819 | 55.4 | % | 10.0 | % | 1.9 | % | ||||||||
| Total non-owner-occupied commercial real estate loans | $ | 403,487 | $ | 1,436 | 54.6 | % | 100.0 | % | 19.1 | % | ||||||
| Total portfolio loans, gross | $ | 2,113,705 | ||||||||||||||
Owner-occupied commercial real estate loans
| As of September 30, 2024 | ||||||||||||||||
| (in thousands) | Amount | Average Loan Size | Weighted Average LTV(1) | % of Owner-Occupied Commercial Real Estate Loans | % of Total Portfolio Loans, Gross | |||||||||||
| Loan type: | ||||||||||||||||
| Industrial | $ | 108,048 | $ | 1,522 | 56.9 | % | 30.7 | % | 5.1 | % | ||||||
| Office | 44,781 | 640 | 57.5 | % | 12.7 | % | 2.1 | % | ||||||||
| Retail | 41,137 | 762 | 59.2 | % | 11.7 | % | 1.9 | % | ||||||||
| Mixed use | 17,550 | 924 | 65.2 | % | 5.0 | % | 0.8 | % | ||||||||
| Other(2) | 139,946 | 2,799 | 61.6 | % | 39.9 | % | 6.6 | % | ||||||||
| Total owner-occupied commercial real estate loans | $ | 351,462 | $ | 1,331 | 59.6 | % | 100.0 | % | 16.6 | % | ||||||
| Total portfolio loans, gross | $ | 2,113,705 | ||||||||||||||
(1) The weighted average LTV of the loan categories previously mentioned are calculated by reference to the most recent appraisal of the property securing each loan.
(2) Other owner-occupied commercial real estate loans include special purpose loans of
Classified and Criticized Loans - At September 30, 2024, special mention loans totaled
OpenSky™
Revenues - Total revenue of
Noninterest Expense - Total noninterest expense of
Loan and Deposit Balances - Loan balances, net of reserves, of
OpenSky™ Credit - Portfolio credit metrics continue to be stable and generally consistent with modeled expectations during the third quarter 2024. The provision for credit losses of
| COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited | |||||||||||||||||||||||||
| Quarter Ended | 3Q24 vs 2Q24 | 3Q24 vs 3Q23 | |||||||||||||||||||||||
| (in thousands, except per share data) | September 30, 2024 | June 30, 2024 | September 30, 2023 | $ Change | % Change | $ Change | % Change | ||||||||||||||||||
| Earnings Summary | |||||||||||||||||||||||||
| Interest income | $ | 52,610 | $ | 50,615 | $ | 47,741 | $ | 1,995 | 3.9 | % | $ | 4,869 | 10.2 | % | |||||||||||
| Interest expense | 14,256 | 13,558 | 10,931 | 698 | 5.1 | % | 3,325 | 30.4 | % | ||||||||||||||||
| Net interest income | 38,354 | 37,057 | 36,810 | 1,297 | 3.5 | % | 1,544 | 4.2 | % | ||||||||||||||||
| Provision for credit losses | 3,748 | 3,417 | 2,280 | 331 | 9.7 | % | 1,468 | 64.4 | % | ||||||||||||||||
| Provision for credit losses on unfunded commitments | 17 | 104 | 24 | (87 | ) | (83.7 | )% | (7 | ) | (29.2 | )% | ||||||||||||||
| Noninterest income | 6,635 | 6,890 | 6,326 | (255 | ) | (3.7 | )% | 309 | 4.9 | % | |||||||||||||||
| Noninterest expense | 29,725 | 29,493 | 28,046 | 232 | 0.8 | % | 1,679 | 6.0 | % | ||||||||||||||||
| Income before income taxes | 11,499 | 10,933 | 12,786 | 566 | 5.2 | % | (1,287 | ) | (10.1 | )% | |||||||||||||||
| Income tax expense | 2,827 | 2,728 | 2,998 | 99 | 3.6 | % | (171 | ) | (5.7 | )% | |||||||||||||||
| Net income | $ | 8,672 | $ | 8,205 | $ | 9,788 | $ | 467 | 5.7 | % | $ | (1,116 | ) | (11.4 | )% | ||||||||||
| Pre-tax pre-provision net revenue ("PPNR")(1) | $ | 15,264 | $ | 14,454 | $ | 15,090 | $ | 810 | 5.6 | % | $ | 174 | 1.2 | % | |||||||||||
| PPNR, as adjusted(1) | $ | 15,784 | $ | 14,537 | $ | 15,090 | $ | 1,247 | 8.6 | % | $ | 694 | 4.6 | % | |||||||||||
| Common Share Data | |||||||||||||||||||||||||
| Earnings per share - Basic | $ | 0.62 | $ | 0.59 | $ | 0.70 | $ | 0.03 | 5.1 | % | $ | (0.08 | ) | (11.4 | )% | ||||||||||
| Earnings per share - Diluted | $ | 0.62 | $ | 0.59 | $ | 0.70 | $ | 0.03 | 5.1 | % | $ | (0.08 | ) | (11.4 | )% | ||||||||||
| Earnings per share - Diluted, as adjusted(1) | $ | 0.66 | $ | 0.59 | $ | 0.70 | $ | 0.07 | 11.9 | % | $ | (0.04 | ) | (5.7 | )% | ||||||||||
| Weighted average common shares - Basic | 13,914 | 13,895 | 13,933 | ||||||||||||||||||||||
| Weighted average common shares - Diluted | 13,951 | 13,895 | 14,024 | ||||||||||||||||||||||
| Return Ratios | |||||||||||||||||||||||||
| Return on average assets (annualized) | 1.42 | % | 1.40 | % | 1.75 | % | |||||||||||||||||||
| Return on average assets, as adjusted (annualized)(1) | 1.51 | % | 1.41 | % | 1.75 | % | |||||||||||||||||||
| Return on average equity (annualized) | 12.59 | % | 12.53 | % | 16.00 | % | |||||||||||||||||||
| Return on average equity, as adjusted (annualized)(1) | 13.40 | % | 12.62 | % | 16.00 | % | |||||||||||||||||||
______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.
| COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued) | |||||||||||||||
| Nine Months Ended | |||||||||||||||
| September 30, | |||||||||||||||
| (in thousands, except per share data) | 2024 | 2023 | $ Change | % Change | |||||||||||
| Earnings Summary | |||||||||||||||
| Interest income | $ | 151,594 | $ | 136,237 | $ | 15,357 | 11.3 | % | |||||||
| Interest expense | 41,175 | 29,600 | 11,575 | 39.1 | % | ||||||||||
| Net interest income | 110,419 | 106,637 | 3,782 | 3.5 | % | ||||||||||
| Provision for credit losses | 9,892 | 6,802 | 3,090 | 45.4 | % | ||||||||||
| Provision for credit losses on unfunded commitments | 263 | 5 | 258 | 5,160.0 | % | ||||||||||
| Noninterest income | 19,497 | 19,039 | 458 | 2.4 | % | ||||||||||
| Noninterest expense | 88,705 | 83,860 | 4,845 | 5.8 | % | ||||||||||
| Income before income taxes | 31,056 | 35,009 | (3,953 | ) | (11.3 | )% | |||||||||
| Income tax expense | 7,617 | 8,168 | (551 | ) | (6.7 | )% | |||||||||
| Net income | $ | 23,439 | $ | 26,841 | $ | (3,402 | ) | (12.7 | )% | ||||||
| Pre-tax pre-provision net revenue ("PPNR")(1) | $ | 41,211 | $ | 41,816 | $ | (605 | ) | (1.4 | )% | ||||||
| PPNR, as adjusted(1) | $ | 42,526 | $ | 41,816 | $ | 710 | 1.7 | % | |||||||
| Common Share Data | |||||||||||||||
| Earnings per share - Basic | $ | 1.69 | $ | 1.91 | $ | (0.22 | ) | (11.5 | )% | ||||||
| Earnings per share - Diluted | $ | 1.69 | $ | 1.90 | $ | (0.21 | ) | (11.1 | )% | ||||||
| Earnings per share - Diluted, as adjusted(1) | $ | 1.77 | $ | 1.90 | |||||||||||
| Weighted average common shares - Basic | 13,909 | 14,038 | |||||||||||||
| Weighted average common shares - Diluted | 13,909 | 14,112 | |||||||||||||
| Return Ratios | |||||||||||||||
| Return on average assets (annualized) | 1.32 | % | 1.64 | % | |||||||||||
| Return on average assets, as adjusted (annualized)(1) | 1.39 | % | 1.64 | % | |||||||||||
| Return on average equity (annualized) | 11.79 | % | 15.08 | % | |||||||||||
| Return on average equity, as adjusted (annualized)(1) | 12.37 | % | 15.08 | % | |||||||||||
______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.
| COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued) | ||||||||||||||||||||||
| Quarter Ended | Quarter Ended | |||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||
| (in thousands, except per share data) | 2024 | 2023 | % Change | 2024 | 2023 | 2023 | ||||||||||||||||
| Balance Sheet Highlights | ||||||||||||||||||||||
| Assets | $ | 2,560,788 | $ | 2,272,484 | 12.7 | % | $ | 2,438,583 | $ | 2,324,238 | $ | 2,226,176 | ||||||||||
| Investment securities available for sale | 208,700 | 206,055 | 1.3 | % | 207,917 | 202,254 | 208,329 | |||||||||||||||
| Mortgage loans held for sale | 19,554 | 4,843 | 303.8 | % | 19,219 | 10,303 | 7,481 | |||||||||||||||
| Portfolio loans receivable(2) | 2,107,522 | 1,862,679 | 13.1 | % | 2,021,588 | 1,964,525 | 1,903,288 | |||||||||||||||
| Allowance for credit losses | 31,925 | 28,279 | 12.9 | % | 30,832 | 29,350 | 28,610 | |||||||||||||||
| Deposits | 2,186,224 | 1,967,988 | 11.1 | % | 2,100,428 | 2,005,695 | 1,895,996 | |||||||||||||||
| FHLB borrowings | 52,000 | 22,000 | 136.4 | % | 32,000 | 22,000 | 22,000 | |||||||||||||||
| Other borrowed funds | 12,062 | 12,062 | — | % | 12,062 | 12,062 | 27,062 | |||||||||||||||
| Total stockholders' equity | 280,111 | 242,878 | 15.3 | % | 267,854 | 259,465 | 254,860 | |||||||||||||||
| Tangible common equity(1) | 280,111 | 242,878 | 15.3 | % | 267,854 | 259,465 | 254,860 | |||||||||||||||
| Common shares outstanding | 13,918 | 13,893 | 0.2 | % | 13,910 | 13,890 | 13,923 | |||||||||||||||
| Book value per share | $ | 20.13 | $ | 17.48 | 15.2 | % | $ | 19.26 | $ | 18.68 | $ | 18.31 | ||||||||||
| Tangible book value per share(1) | $ | 20.13 | $ | 17.48 | 15.2 | % | $ | 19.26 | $ | 18.68 | $ | 18.31 | ||||||||||
| Dividends per share | $ | 0.10 | $ | 0.08 | 25.0 | % | $ | 0.08 | $ | 0.08 | $ | 0.08 | ||||||||||
______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.
(2) Loans are reflected net of deferred fees and costs.
| Consolidated Statements of Income (Unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
| (in thousands) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||||||||||
| Interest income | |||||||||||||||||||||||||||
| Loans, including fees | $ | 50,047 | $ | 48,275 | $ | 45,991 | $ | 45,109 | $ | 45,385 | $ | 144,313 | $ | 129,651 | |||||||||||||
| Investment securities available for sale | 1,343 | 1,308 | 1,251 | 1,083 | 1,089 | 3,902 | 3,732 | ||||||||||||||||||||
| Federal funds sold and other | 1,220 | 1,032 | 1,127 | 777 | 1,267 | 3,379 | 2,854 | ||||||||||||||||||||
| Total interest income | 52,610 | 50,615 | 48,369 | 46,969 | 47,741 | 151,594 | 136,237 | ||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||
| Deposits | 13,902 | 13,050 | 12,833 | 11,759 | 10,703 | 39,785 | 27,866 | ||||||||||||||||||||
| Borrowed funds | 354 | 508 | 528 | 321 | 228 | 1,390 | 1,734 | ||||||||||||||||||||
| Total interest expense | 14,256 | 13,558 | 13,361 | 12,080 | 10,931 | 41,175 | 29,600 | ||||||||||||||||||||
| Net interest income | 38,354 | 37,057 | 35,008 | 34,889 | 36,810 | 110,419 | 106,637 | ||||||||||||||||||||
| Provision for credit losses | 3,748 | 3,417 | 2,727 | 2,808 | 2,280 | 9,892 | 6,802 | ||||||||||||||||||||
| Provision for (release of) credit losses on unfunded commitments | 17 | 104 | 142 | (106 | ) | 24 | 263 | 5 | |||||||||||||||||||
| Net interest income after provision for credit losses | 34,589 | 33,536 | 32,139 | 32,187 | 34,506 | 100,264 | 99,830 | ||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||
| Service charges on deposits | 235 | 200 | 207 | 240 | 250 | 642 | 724 | ||||||||||||||||||||
| Credit card fees | 4,055 | 4,330 | 3,881 | 3,970 | 4,387 | 12,266 | 13,303 | ||||||||||||||||||||
| Mortgage banking revenue | 1,882 | 1,990 | 1,453 | 1,166 | 1,243 | 5,325 | 3,730 | ||||||||||||||||||||
| Other income | 463 | 370 | 431 | 560 | 446 | 1,264 | 1,282 | ||||||||||||||||||||
| Total noninterest income | 6,635 | 6,890 | 5,972 | 5,936 | 6,326 | 19,497 | 19,039 | ||||||||||||||||||||
| Noninterest expenses | |||||||||||||||||||||||||||
| Salaries and employee benefits | 13,345 | 13,272 | 12,907 | 11,638 | 12,419 | 39,524 | 37,116 | ||||||||||||||||||||
| Occupancy and equipment | 1,791 | 1,864 | 1,613 | 1,573 | 1,351 | 5,268 | 4,100 | ||||||||||||||||||||
| Professional fees | 1,980 | 1,769 | 1,947 | 1,930 | 2,358 | 5,696 | 7,340 | ||||||||||||||||||||
| Data processing | 6,930 | 6,788 | 6,761 | 6,128 | 6,469 | 20,479 | 19,558 | ||||||||||||||||||||
| Advertising | 1,223 | 2,072 | 2,032 | 1,433 | 1,565 | 5,327 | 4,728 | ||||||||||||||||||||
| Loan processing | 615 | 476 | 371 | 198 | 426 | 1,462 | 1,435 | ||||||||||||||||||||
| Foreclosed real estate expenses, net | 1 | — | 1 | — | 1 | 2 | 7 | ||||||||||||||||||||
| Merger-related expenses | 520 | 83 | 712 | — | — | 1,315 | — | ||||||||||||||||||||
| Operational losses | 1,008 | 782 | 931 | 1,490 | 953 | 2,721 | 3,123 | ||||||||||||||||||||
| Other operating | 2,312 | 2,387 | 2,212 | 2,517 | 2,504 | 6,911 | 6,453 | ||||||||||||||||||||
| Total noninterest expenses | 29,725 | 29,493 | 29,487 | 26,907 | 28,046 | 88,705 | 83,860 | ||||||||||||||||||||
| Income before income taxes | 11,499 | 10,933 | 8,624 | 11,216 | 12,786 | 31,056 | 35,009 | ||||||||||||||||||||
| Income tax expense | 2,827 | 2,728 | 2,062 | 2,186 | 2,998 | 7,617 | 8,168 | ||||||||||||||||||||
| Net income | $ | 8,672 | $ | 8,205 | $ | 6,562 | $ | 9,030 | $ | 9,788 | $ | 23,439 | $ | 26,841 | |||||||||||||
| Consolidated Balance Sheets | |||||||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (audited) | (unaudited) | |||||||||||||||
| (in thousands, except share data) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from banks | $ | 23,462 | $ | 19,294 | $ | 12,361 | $ | 14,513 | $ | 13,767 | |||||||||
| Interest-bearing deposits at other financial institutions | 133,180 | 117,160 | 72,787 | 39,044 | 130,428 | ||||||||||||||
| Federal funds sold | 58 | 57 | 56 | 407 | 1,957 | ||||||||||||||
| Total cash and cash equivalents | 156,700 | 136,511 | 85,204 | 53,964 | 146,152 | ||||||||||||||
| Investment securities available for sale | 208,700 | 207,917 | 202,254 | 208,329 | 206,055 | ||||||||||||||
| Restricted investments | 5,895 | 4,930 | 4,441 | 4,353 | 4,340 | ||||||||||||||
| Loans held for sale | 19,554 | 19,219 | 10,303 | 7,481 | 4,843 | ||||||||||||||
| Portfolio loans receivable, net of deferred fees and costs | 2,107,522 | 2,021,588 | 1,964,525 | 1,903,288 | 1,862,679 | ||||||||||||||
| Less allowance for credit losses | (31,925 | ) | (30,832 | ) | (29,350 | ) | (28,610 | ) | (28,279 | ) | |||||||||
| Total portfolio loans held for investment, net | 2,075,597 | 1,990,756 | 1,935,175 | 1,874,678 | 1,834,400 | ||||||||||||||
| Premises and equipment, net | 5,959 | 5,551 | 4,500 | 5,069 | 5,297 | ||||||||||||||
| Accrued interest receivable | 12,468 | 12,162 | 12,258 | 11,494 | 11,231 | ||||||||||||||
| Deferred tax asset | 10,748 | 12,150 | 12,311 | 12,252 | 13,644 | ||||||||||||||
| Bank owned life insurance | 38,779 | 38,414 | 38,062 | 37,711 | 37,315 | ||||||||||||||
| Accounts receivable | 597 | 1,336 | 11,637 | 1,055 | 696 | ||||||||||||||
| Other assets | 25,791 | 9,637 | 8,093 | 9,790 | 8,511 | ||||||||||||||
| Total assets | $ | 2,560,788 | $ | 2,438,583 | $ | 2,324,238 | $ | 2,226,176 | $ | 2,272,484 | |||||||||
| Liabilities | |||||||||||||||||||
| Deposits | |||||||||||||||||||
| Noninterest-bearing | $ | 718,120 | $ | 684,574 | $ | 665,812 | $ | 617,373 | $ | 680,803 | |||||||||
| Interest-bearing | 1,468,104 | 1,415,854 | 1,339,883 | 1,278,623 | 1,287,185 | ||||||||||||||
| Total deposits | 2,186,224 | 2,100,428 | 2,005,695 | 1,895,996 | 1,967,988 | ||||||||||||||
| Federal Home Loan Bank advances | 52,000 | 32,000 | 22,000 | 22,000 | 22,000 | ||||||||||||||
| Other borrowed funds | 12,062 | 12,062 | 12,062 | 27,062 | 12,062 | ||||||||||||||
| Accrued interest payable | 8,503 | 6,573 | 6,009 | 5,583 | 5,204 | ||||||||||||||
| Other liabilities | 21,888 | 19,666 | 19,007 | 20,675 | 22,352 | ||||||||||||||
| Total liabilities | 2,280,677 | 2,170,729 | 2,064,773 | 1,971,316 | 2,029,606 | ||||||||||||||
| Stockholders' equity | |||||||||||||||||||
| Common stock | 139 | 139 | 139 | 139 | 139 | ||||||||||||||
| Additional paid-in capital | 55,585 | 55,005 | 54,229 | 54,473 | 54,549 | ||||||||||||||
| Retained earnings | 232,995 | 225,824 | 218,731 | 213,345 | 206,033 | ||||||||||||||
| Accumulated other comprehensive loss | (8,608 | ) | (13,114 | ) | (13,634 | ) | (13,097 | ) | (17,843 | ) | |||||||||
| Total stockholders' equity | 280,111 | 267,854 | 259,465 | 254,860 | 242,878 | ||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,560,788 | $ | 2,438,583 | $ | 2,324,238 | $ | 2,226,176 | $ | 2,272,484 | |||||||||
The following tables show the average outstanding balance of each principal category of our assets, liabilities and stockholders’ equity, together with the average yields on our assets and the average costs of our liabilities for the periods indicated. Such yields and costs are calculated by dividing the annualized income or expense by the average daily balances of the corresponding assets or liabilities for the same period.
| Three Months Ended September 30, 2024 | Three Months Ended June 30, 2024 | Three Months Ended September 30, 2023 | ||||||||||||||||||||||||
| Average Outstanding Balance | Interest Income/ Expense | Average Yield/ Rate(1) | Average Outstanding Balance | Interest Income/ Expense | Average Yield/ Rate(1) | Average Outstanding Balance | Interest Income/ Expense | Average Yield/ Rate(1) | ||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||||||||||
| Interest-bearing deposits | $ | 91,089 | $ | 1,137 | 4.97 | % | $ | 77,069 | $ | 937 | 4.89 | % | $ | 87,112 | $ | 1,183 | 5.39 | % | ||||||||
| Federal funds sold | 57 | 1 | 6.98 | 56 | 1 | 7.18 | 1,134 | 15 | 5.25 | |||||||||||||||||
| Investment securities available for sale | 221,303 | 1,343 | 2.41 | 223,973 | 1,308 | 2.35 | 229,731 | 1,089 | 1.88 | |||||||||||||||||
| Restricted investments | 4,911 | 82 | 6.64 | 5,435 | 94 | 6.96 | 4,058 | 69 | 6.75 | |||||||||||||||||
| Loans held for sale | 9,967 | 161 | 6.43 | 7,907 | 132 | 6.71 | 6,670 | 111 | 6.60 | |||||||||||||||||
| Portfolio loans receivable(2)(3) | 2,053,619 | 49,886 | 9.66 | 1,992,630 | 48,143 | 9.72 | 1,847,772 | 45,274 | 9.72 | |||||||||||||||||
| Total interest earning assets | 2,380,946 | 52,610 | 8.79 | 2,307,070 | 50,615 | 8.82 | 2,176,477 | 47,741 | 8.70 | |||||||||||||||||
| Noninterest earning assets | 56,924 | 46,798 | 44,640 | |||||||||||||||||||||||
| Total assets | $ | 2,437,870 | $ | 2,353,868 | $ | 2,221,117 | ||||||||||||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||
| Interest-bearing demand accounts | $ | 228,365 | 321 | 0.56 | $ | 216,247 | 148 | 0.28 | $ | 215,527 | 71 | 0.13 | ||||||||||||||
| Savings | 4,135 | 5 | 0.48 | 4,409 | 1 | 0.09 | 5,582 | 3 | 0.21 | |||||||||||||||||
| Money market accounts | 698,239 | 7,442 | 4.24 | 671,240 | 7,032 | 4.21 | 655,990 | 6,373 | 3.85 | |||||||||||||||||
| Time deposits | 479,824 | 6,134 | 5.09 | 465,822 | 5,869 | 5.07 | 374,429 | 4,256 | 4.51 | |||||||||||||||||
| Borrowed funds | 43,655 | 354 | 3.23 | 54,863 | 508 | 3.72 | 34,932 | 228 | 2.59 | |||||||||||||||||
| Total interest-bearing liabilities | 1,454,218 | 14,256 | 3.90 | 1,412,581 | 13,558 | 3.86 | 1,286,460 | 10,931 | 3.37 | |||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||||
| Noninterest-bearing liabilities | 28,834 | 24,844 | 25,047 | |||||||||||||||||||||||
| Noninterest-bearing deposits | 680,731 | 653,018 | 666,939 | |||||||||||||||||||||||
| Stockholders’ equity | 274,087 | 263,425 | 242,671 | |||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 2,437,870 | $ | 2,353,868 | $ | 2,221,117 | ||||||||||||||||||||
| Net interest spread | 4.89 | % | 4.96 | % | 5.33 | % | ||||||||||||||||||||
| Net interest income | $ | 38,354 | $ | 37,057 | $ | 36,810 | ||||||||||||||||||||
| Net interest margin(4) | 6.41 | % | 6.46 | % | 6.71 | % | ||||||||||||||||||||
_______________
(1) Annualized.
(2) Includes nonaccrual loans.
(3) For the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, collectively, portfolio loans yield excluding credit card loans was
(4) For the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, collectively, credit card loans accounted for 233, 246 and 266 basis points of the reported net interest margin, respectively.
| Nine Months Ended September 30, | |||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| Average Outstanding Balance | Interest Income/ Expense | Average Yield/ Rate(1) | Average Outstanding Balance | Interest Income/ Expense | Average Yield/ Rate(1) | ||||||||||||
| (in thousands) | |||||||||||||||||
| Assets | |||||||||||||||||
| Interest earning assets: | |||||||||||||||||
| Interest-bearing deposits | $ | 84,254 | $ | 3,123 | 4.95 | % | $ | 72,116 | $ | 2,531 | 4.69 | % | |||||
| Federal funds sold | 57 | 3 | 7.03 | 1,605 | 53 | 4.42 | |||||||||||
| Investment securities available for sale | 226,151 | 3,902 | 2.30 | 252,993 | 3,732 | 1.97 | |||||||||||
| Restricted investments | 4,982 | 253 | 6.78 | 5,184 | 270 | 6.96 | |||||||||||
| Loans held for sale | 7,591 | 376 | 6.62 | 6,145 | 299 | 6.51 | |||||||||||
| Portfolio loans receivable(2)(3) | 1,991,435 | 143,937 | 9.65 | 1,801,355 | 129,352 | 9.60 | |||||||||||
| Total interest earning assets | 2,314,470 | 151,594 | 8.75 | 2,139,398 | 136,237 | 8.51 | |||||||||||
| Noninterest earning assets | 49,458 | 44,123 | |||||||||||||||
| Total assets | $ | 2,363,928 | $ | 2,183,521 | |||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||
| Interest-bearing demand accounts | $ | 209,346 | 579 | 0.37 | $ | 203,099 | 208 | 0.14 | |||||||||
| Savings | 4,460 | 7 | 0.21 | 5,965 | 6 | 0.13 | |||||||||||
| Money market accounts | 684,017 | 21,610 | 4.22 | 628,977 | 16,371 | 3.48 | |||||||||||
| Time deposits | 465,256 | 17,589 | 5.05 | 353,635 | 11,281 | 4.27 | |||||||||||
| Borrowed funds | 52,461 | 1,390 | 3.54 | 65,192 | 1,734 | 3.56 | |||||||||||
| Total interest-bearing liabilities | 1,415,540 | 41,175 | 3.89 | 1,256,868 | 29,600 | 3.15 | |||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||
| Noninterest-bearing liabilities | 25,844 | 22,846 | |||||||||||||||
| Noninterest-bearing deposits | 657,044 | 665,821 | |||||||||||||||
| Stockholders’ equity | 265,500 | 237,986 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 2,363,928 | $ | 2,183,521 | |||||||||||||
| Net interest spread | 4.86 | % | 5.36 | % | |||||||||||||
| Net interest income | $ | 110,419 | $ | 106,637 | |||||||||||||
| Net interest margin(4) | 6.37 | % | 6.66 | % | |||||||||||||
(1) Annualized.
(2) Includes nonaccrual loans.
(3) For the nine months ended September 30, 2024 and 2023, collectively, portfolio loans yield excluding credit card loans was
(4) For the nine months ended September 30, 2024 and 2023, collectively, credit card loans accounted for 239 and 268 basis points of the reported net interest margin, respectively.
The Company’s reportable segments represent business units with discrete financial information whose results are regularly reviewed by management. The four segments include Commercial Banking, Capital Bank Home Loans (the Company’s mortgage loan division), OpenSky™ (the Company’s credit card division) and the Corporate Office.
Effective January 1, 2024, the Company allocated certain expenses previously recorded directly to the Commercial Bank segment to the other segments. These expenses are for shared services also consumed by OpenSky™, CBHL, and Corporate. The Company performs an allocation process based on several metrics the Company believes more accurately ascribe shared service overhead to each segment. The Company believes this reflects the cost of support for each segment that should be considered in assessing segment performance. Historical information has been recast to reflect financial information consistently with the 2024 presentation.
The following schedule presents financial information for the periods indicated. Total assets are presented as of September 30, 2024, June 30, 2024, and September 30, 2023.
| Segments | ||||||||||||||||||||||||
| For the three months ended September 30, 2024 | ||||||||||||||||||||||||
| (in thousands) | Commercial Bank | CBHL | OpenSky™ | Corporate(2) | Eliminations | Consolidated | ||||||||||||||||||
| Interest income | $ | 35,805 | $ | 161 | $ | 15,625 | $ | 1,049 | $ | (30 | ) | $ | 52,610 | |||||||||||
| Interest expense | 13,984 | 108 | — | 194 | (30 | ) | 14,256 | |||||||||||||||||
| Net interest income | 21,821 | 53 | 15,625 | 855 | — | 38,354 | ||||||||||||||||||
| Provision for credit losses | 1,453 | — | 2,294 | 1 | — | 3,748 | ||||||||||||||||||
| Provision for credit losses on unfunded commitments | 17 | — | — | — | — | 17 | ||||||||||||||||||
| Net interest income after provision | 20,351 | 53 | 13,331 | 854 | — | 34,589 | ||||||||||||||||||
| Noninterest income | 726 | 1,811 | 4,096 | 2 | — | 6,635 | ||||||||||||||||||
| Noninterest expense(1) | 12,422 | 2,395 | 13,276 | 1,632 | — | 29,725 | ||||||||||||||||||
| Net income (loss) before taxes | $ | 8,655 | $ | (531 | ) | $ | 4,151 | $ | (776 | ) | $ | — | $ | 11,499 | ||||||||||
| Total assets | $ | 2,358,555 | $ | 19,831 | $ | 121,587 | $ | 300,325 | $ | (239,510 | ) | $ | 2,560,788 | |||||||||||
| For the three months ended June 30, 2024 | ||||||||||||||||||||||||
| (in thousands) | Commercial Bank | CBHL | OpenSky™ | Corporate(2) | Eliminations | Consolidated | ||||||||||||||||||
| Interest income | $ | 33,935 | $ | 132 | $ | 15,785 | $ | 824 | $ | (61 | ) | $ | 50,615 | |||||||||||
| Interest expense | 13,312 | 83 | — | 224 | (61 | ) | 13,558 | |||||||||||||||||
| Net interest income | 20,623 | 49 | 15,785 | 600 | — | 37,057 | ||||||||||||||||||
| Provision for credit losses | 1,118 | — | 2,299 | — | — | 3,417 | ||||||||||||||||||
| Provision for credit losses on unfunded commitments | 104 | — | — | — | — | 104 | ||||||||||||||||||
| Net interest income after provision | 19,401 | 49 | 13,486 | 600 | — | 33,536 | ||||||||||||||||||
| Noninterest income | 677 | 1,845 | 4,368 | — | — | 6,890 | ||||||||||||||||||
| Noninterest expense(1) | 12,209 | 2,500 | 13,775 | 1,009 | — | 29,493 | ||||||||||||||||||
| Net income (loss) before taxes | $ | 7,869 | $ | (606 | ) | $ | 4,079 | $ | (409 | ) | $ | — | $ | 10,933 | ||||||||||
| Total assets | $ | 2,254,198 | $ | 19,622 | $ | 115,593 | $ | 288,872 | $ | (239,702 | ) | $ | 2,438,583 | |||||||||||
| For the three months ended September 30, 2023 | ||||||||||||||||||||||||
| (in thousands) | Commercial Bank | CBHL | OpenSky™ | Corporate(2) | Eliminations | Consolidated | ||||||||||||||||||
| Interest income | $ | 30,409 | $ | 111 | $ | 16,143 | $ | 1,162 | $ | (84 | ) | $ | 47,741 | |||||||||||
| Interest expense | 10,736 | 32 | — | 247 | (84 | ) | 10,931 | |||||||||||||||||
| Net interest income | 19,673 | 79 | 16,143 | 915 | — | 36,810 | ||||||||||||||||||
| Provision for credit losses | 275 | — | 1,875 | 130 | — | 2,280 | ||||||||||||||||||
| Provision for credit losses on unfunded commitments | 24 | — | — | — | — | 24 | ||||||||||||||||||
| Net interest income after provision | 19,374 | 79 | 14,268 | 785 | — | 34,506 | ||||||||||||||||||
| Noninterest income | 665 | 1,255 | 4,405 | 1 | — | 6,326 | ||||||||||||||||||
| Noninterest expense(1) | 12,610 | 1,880 | 13,227 | 329 | — | 28,046 | ||||||||||||||||||
| Net income (loss) before taxes | $ | 7,429 | $ | (546 | ) | $ | 5,446 | $ | 457 | $ | — | $ | 12,786 | |||||||||||
| Total assets | $ | 2,102,749 | $ | 5,280 | $ | 116,318 | $ | 264,950 | $ | (216,813 | ) | $ | 2,272,484 | |||||||||||
________________________
(1) Noninterest expense includes
(2) The Corporate segment invests idle cash in revenue-producing assets including interest-bearing cash accounts, loan participations and other appropriate investments for the Company.
| Segments | ||||||||||||||||||||||||
| For the nine months ended September 30, 2024 | ||||||||||||||||||||||||
| (in thousands) | Commercial Bank | CBHL | OpenSky™ | Corporate(2) | Eliminations | Consolidated | ||||||||||||||||||
| Interest income | $ | 102,269 | $ | 376 | $ | 46,331 | $ | 2,772 | $ | (154 | ) | $ | 151,594 | |||||||||||
| Interest expense | 40,450 | 232 | — | 647 | (154 | ) | 41,175 | |||||||||||||||||
| Net interest income | 61,819 | 144 | 46,331 | 2,125 | — | 110,419 | ||||||||||||||||||
| Provision for credit losses | 3,680 | — | 6,152 | 60 | — | 9,892 | ||||||||||||||||||
| Provision for credit losses on unfunded commitments | 263 | — | — | — | — | 263 | ||||||||||||||||||
| Net interest income after provision | 57,876 | 144 | 40,179 | 2,065 | — | 100,264 | ||||||||||||||||||
| Noninterest income | 2,107 | 5,008 | 12,379 | 3 | — | 19,497 | ||||||||||||||||||
| Noninterest expense(1) | 36,890 | 7,000 | 40,650 | 4,165 | — | 88,705 | ||||||||||||||||||
| Net income (loss) before taxes | $ | 23,093 | $ | (1,848 | ) | $ | 11,908 | $ | (2,097 | ) | $ | — | $ | 31,056 | ||||||||||
| Total assets | $ | 2,358,555 | $ | 19,831 | $ | 121,587 | $ | 300,325 | $ | (239,510 | ) | $ | 2,560,788 | |||||||||||
| For the nine months ended September 30, 2023 | ||||||||||||||||||||||||
| (in thousands) | Commercial Bank | CBHL | OpenSky™ | Corporate(2) | Eliminations | Consolidated | ||||||||||||||||||
| Interest income | $ | 85,451 | $ | 299 | $ | 47,441 | $ | 3,274 | $ | (228 | ) | $ | 136,237 | |||||||||||
| Interest expense | 29,012 | 104 | — | 712 | (228 | ) | 29,600 | |||||||||||||||||
| Net interest income | 56,439 | 195 | 47,441 | 2,562 | — | 106,637 | ||||||||||||||||||
| Provision for credit losses | 849 | — | 5,823 | 130 | — | 6,802 | ||||||||||||||||||
| Provision for credit losses on unfunded commitments | 5 | — | — | — | — | 5 | ||||||||||||||||||
| Net interest income after provision | 55,585 | 195 | 41,618 | 2,432 | — | 99,830 | ||||||||||||||||||
| Noninterest income | 1,964 | 3,743 | 13,329 | 3 | — | 19,039 | ||||||||||||||||||
| Noninterest expense(1) | 36,043 | 6,538 | 40,083 | 1,196 | — | 83,860 | ||||||||||||||||||
| Net income (loss) before taxes | $ | 21,506 | $ | (2,600 | ) | $ | 14,864 | $ | 1,239 | $ | — | $ | 35,009 | |||||||||||
| Total assets | $ | 2,102,749 | $ | 5,280 | $ | 116,318 | $ | 264,950 | $ | (216,813 | ) | $ | 2,272,484 | |||||||||||
(1) Noninterest expense includes
(2) The Corporate segment invests idle cash in revenue-producing assets including interest-bearing cash accounts, loan participations and other appropriate investments for the Company.
| HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited | ||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||
| (in thousands, except per share data) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||
| Earnings: | ||||||||||||||||||||
| Net income | $ | 8,672 | $ | 8,205 | $ | 6,562 | $ | 9,030 | $ | 9,788 | ||||||||||
| Earnings per common share, diluted | 0.62 | 0.59 | 0.47 | 0.65 | 0.70 | |||||||||||||||
| Net interest margin | 6.41 | % | 6.46 | % | 6.24 | % | 6.40 | % | 6.71 | % | ||||||||||
| Net interest margin, excluding credit card loans(1) | 4.08 | % | 4.00 | % | 3.85 | % | 3.92 | % | 4.05 | % | ||||||||||
| Return on average assets(2) | 1.42 | % | 1.40 | % | 1.15 | % | 1.63 | % | 1.75 | % | ||||||||||
| Return on average equity(2) | 12.59 | % | 12.53 | % | 10.19 | % | 14.44 | % | 16.00 | % | ||||||||||
| Efficiency ratio | 66.07 | % | 67.11 | % | 71.95 | % | 65.91 | % | 65.02 | % | ||||||||||
| Balance Sheet: | ||||||||||||||||||||
| Total portfolio loans receivable, net deferred fees | $ | 2,107,522 | $ | 2,021,588 | $ | 1,964,525 | $ | 1,902,643 | $ | 1,861,929 | ||||||||||
| Total deposits | 2,186,224 | 2,100,428 | 2,005,695 | 1,895,996 | 1,967,988 | |||||||||||||||
| Total assets | 2,560,788 | 2,438,583 | 2,324,238 | 2,226,176 | 2,272,484 | |||||||||||||||
| Total stockholders' equity | 280,111 | 267,854 | 259,465 | 254,860 | 242,878 | |||||||||||||||
| Total average portfolio loans receivable, net deferred fees | 2,053,619 | 1,992,630 | 1,927,372 | 1,863,298 | 1,847,772 | |||||||||||||||
| Total average deposits | 2,091,294 | 2,010,736 | 1,957,559 | 1,885,092 | 1,918,467 | |||||||||||||||
| Portfolio loans-to-deposit ratio (period-end balances) | 96.40 | % | 96.25 | % | 97.95 | % | 100.35 | % | 94.61 | % | ||||||||||
| Portfolio loans-to-deposit ratio (average balances) | 98.20 | % | 99.10 | % | 98.46 | % | 98.84 | % | 96.32 | % | ||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||
| Nonperforming assets to total assets | 0.60 | % | 0.58 | % | 0.62 | % | 0.72 | % | 0.67 | % | ||||||||||
| Nonperforming loans to total loans | 0.73 | % | 0.70 | % | 0.73 | % | 0.84 | % | 0.82 | % | ||||||||||
| Net charge-offs to average portfolio loans(2) | 0.51 | % | 0.39 | % | 0.41 | % | 0.53 | % | 0.38 | % | ||||||||||
| Allowance for credit losses to total loans | 1.51 | % | 1.53 | % | 1.49 | % | 1.50 | % | 1.52 | % | ||||||||||
| Allowance for credit losses to non-performing loans | 206.50 | % | 219.40 | % | 204.37 | % | 178.34 | % | 185.61 | % | ||||||||||
| Bank Capital Ratios: | ||||||||||||||||||||
| Total risk based capital ratio | 13.76 | % | 14.51 | % | 14.36 | % | 14.81 | % | 14.51 | % | ||||||||||
| Tier 1 risk based capital ratio | 12.50 | % | 13.25 | % | 13.10 | % | 13.56 | % | 13.25 | % | ||||||||||
| Leverage ratio | 9.84 | % | 10.36 | % | 10.29 | % | 10.51 | % | 10.04 | % | ||||||||||
| Common equity Tier 1 capital ratio | 12.50 | % | 13.25 | % | 13.10 | % | 13.56 | % | 13.25 | % | ||||||||||
| Tangible common equity | 9.12 | % | 9.53 | % | 9.66 | % | 9.91 | % | 9.08 | % | ||||||||||
| Holding Company Capital Ratios: | ||||||||||||||||||||
| Total risk based capital ratio | 16.65 | % | 16.98 | % | 16.83 | % | 17.38 | % | 17.11 | % | ||||||||||
| Tier 1 risk based capital ratio | 14.88 | % | 15.19 | % | 15.03 | % | 15.55 | % | 15.27 | % | ||||||||||
| Leverage ratio | 11.85 | % | 11.93 | % | 11.87 | % | 12.14 | % | 11.62 | % | ||||||||||
| Common equity Tier 1 capital ratio | 14.78 | % | 15.08 | % | 14.92 | % | 15.43 | % | 15.27 | % | ||||||||||
| Tangible common equity | 10.94 | % | 10.98 | % | 11.16 | % | 11.45 | % | 10.69 | % | ||||||||||
_______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.
(2) Annualized.
| HISTORICAL FINANCIAL HIGHLIGHTS - Unaudited (Continued) | ||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||
| (in thousands, except per share data) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||
| Composition of Loans: | ||||||||||||||||||||
| Commercial real estate, non owner-occupied | $ | 403,487 | $ | 397,080 | $ | 377,224 | $ | 351,116 | $ | 350,637 | ||||||||||
| Commercial real estate, owner-occupied | 351,462 | 319,370 | 330,840 | 307,911 | 305,802 | |||||||||||||||
| Residential real estate | 623,684 | 601,312 | 577,112 | 573,104 | 558,147 | |||||||||||||||
| Construction real estate | 301,909 | 294,489 | 290,016 | 290,108 | 280,905 | |||||||||||||||
| Commercial and industrial | 271,811 | 255,686 | 254,577 | 239,208 | 237,549 | |||||||||||||||
| Lender finance | 29,546 | 33,294 | 13,484 | 11,085 | — | |||||||||||||||
| Business equity lines of credit | 2,663 | 2,989 | 14,768 | 14,117 | 14,155 | |||||||||||||||
| Credit card, net of reserve(3) | 127,098 | 122,217 | 111,898 | 123,331 | 122,533 | |||||||||||||||
| Other consumer loans | 2,045 | 1,930 | 738 | 950 | 948 | |||||||||||||||
| Portfolio loans receivable | $ | 2,113,705 | $ | 2,028,367 | $ | 1,970,657 | $ | 1,910,930 | $ | 1,870,676 | ||||||||||
| Deferred origination fees, net | (6,183 | ) | (6,779 | ) | (6,132 | ) | (7,642 | ) | (7,997 | ) | ||||||||||
| Portfolio loans receivable, net | $ | 2,107,522 | $ | 2,021,588 | $ | 1,964,525 | $ | 1,903,288 | $ | 1,862,679 | ||||||||||
| Composition of Deposits: | ||||||||||||||||||||
| Noninterest-bearing | $ | 718,120 | $ | 684,574 | $ | 665,812 | $ | 617,373 | $ | 680,803 | ||||||||||
| Interest-bearing demand | 266,493 | 266,070 | 193,963 | 199,308 | 229,035 | |||||||||||||||
| Savings | 3,763 | 4,270 | 4,525 | 5,211 | 5,686 | |||||||||||||||
| Money markets | 686,526 | 672,455 | 678,435 | 663,129 | 668,774 | |||||||||||||||
| Brokered time deposits | 153,022 | 155,148 | 160,641 | 142,356 | 128,665 | |||||||||||||||
| Other time deposits | 358,300 | 317,911 | 302,319 | 268,619 | 255,025 | |||||||||||||||
| Total deposits | $ | 2,186,224 | $ | 2,100,428 | $ | 2,005,695 | $ | 1,895,996 | $ | 1,967,988 | ||||||||||
| Capital Bank Home Loan Metrics: | ||||||||||||||||||||
| Origination of loans held for sale | $ | 74,690 | $ | 82,363 | $ | 52,080 | $ | 45,152 | $ | 50,023 | ||||||||||
| Mortgage loans sold | 67,296 | 66,417 | 40,377 | 34,140 | 39,364 | |||||||||||||||
| Gain on sale of loans | 1,644 | 1,732 | 1,238 | 1,015 | 1,011 | |||||||||||||||
| Purchase volume as a % of originations | 90.98 | % | 96.48 | % | 97.83 | % | 89.99 | % | 92.29 | % | ||||||||||
| Gain on sale as a % of loans sold(4) | 2.44 | % | 2.61 | % | 3.07 | % | 2.97 | % | 2.57 | % | ||||||||||
| Mortgage commissions | $ | 598 | $ | 582 | $ | 490 | $ | 465 | $ | 528 | ||||||||||
| OpenSky™Portfolio Metrics: | ||||||||||||||||||||
| Open customer accounts | 548,952 | 537,734 | 526,950 | 525,314 | 529,205 | |||||||||||||||
| Secured credit card loans, gross | $ | 89,641 | $ | 90,961 | $ | 85,663 | $ | 95,300 | $ | 98,138 | ||||||||||
| Unsecured credit card loans, gross | 39,730 | 33,560 | 28,508 | 30,817 | 27,430 | |||||||||||||||
| Noninterest secured credit card deposits | 170,750 | 173,499 | 171,771 | 173,857 | 181,185 | |||||||||||||||
_______________
(3) Credit card loans are presented net of reserve for interest and fees.
(4) Gain on sale percentage is calculated as gain on sale of loans divided by mortgage loans sold.
Appendix
Reconciliation of Non-GAAP Measures
The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company’s results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Investors should recognize that the Company’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.
| Earnings Metrics, as Adjusted | Quarter Ended | ||||||||||||||||||
| (in thousands, except per share data) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||
| Net Income | $ | 8,672 | $ | 8,205 | $ | 6,562 | $ | 9,030 | $ | 9,788 | |||||||||
| Add: Merger-Related Expenses, net of tax | 557 | 62 | 538 | — | — | ||||||||||||||
| Net Income, as Adjusted | $ | 9,229 | $ | 8,267 | $ | 7,100 | $ | 9,030 | $ | 9,788 | |||||||||
| Weighted Average Common Shares - Diluted | 13,951 | 13,895 | 13,919 | 13,989 | 14,024 | ||||||||||||||
| Earnings per Share - Diluted | $ | 0.62 | $ | 0.59 | $ | 0.47 | $ | 0.65 | $ | 0.70 | |||||||||
| Earnings per Share - Diluted, as Adjusted | $ | 0.66 | $ | 0.59 | $ | 0.51 | $ | 0.65 | $ | 0.70 | |||||||||
| Average Assets | $ | 2,437,870 | $ | 2,353,868 | $ | 2,299,234 | $ | 2,202,479 | $ | 2,221,117 | |||||||||
| Return on Average Assets(1) | 1.42 | % | 1.40 | % | 1.15 | % | 1.63 | % | 1.75 | % | |||||||||
| Return on Average Assets, as Adjusted(1) | 1.51 | % | 1.41 | % | 1.24 | % | 1.63 | % | 1.75 | % | |||||||||
| Average Equity | $ | 274,087 | $ | 263,425 | $ | 258,892 | $ | 248,035 | $ | 242,671 | |||||||||
| Return on Average Equity(1) | 12.59 | % | 12.53 | % | 10.19 | % | 14.44 | % | 16.00 | % | |||||||||
| Return on Average Equity, as Adjusted(1) | 13.40 | % | 12.62 | % | 11.03 | % | 14.44 | % | 16.00 | % | |||||||||
| Net Interest Income | $ | 38,354 | $ | 37,057 | $ | 35,008 | $ | 34,889 | $ | 36,810 | |||||||||
| Noninterest Income | 6,635 | 6,890 | 5,972 | 5,936 | 6,326 | ||||||||||||||
| Total Revenue | $ | 44,989 | $ | 43,947 | $ | 40,980 | $ | 40,825 | $ | 43,136 | |||||||||
| Noninterest Expense | $ | 29,725 | $ | 29,493 | $ | 29,487 | $ | 26,907 | $ | 28,046 | |||||||||
| Efficiency Ratio(2) | 66.07 | % | 67.11 | % | 71.95 | % | 65.91 | % | 65.02 | % | |||||||||
| Noninterest Expense | $ | 29,725 | $ | 29,493 | $ | 29,487 | $ | 26,907 | $ | 28,046 | |||||||||
| Less: Merger-Related Expenses | 520 | 83 | 712 | — | — | ||||||||||||||
| Noninterest Expense, as Adjusted | $ | 29,205 | $ | 29,410 | $ | 28,775 | $ | 26,907 | $ | 28,046 | |||||||||
| Efficiency Ratio, as Adjusted(2) | 64.92 | % | 66.92 | % | 70.22 | % | 65.91 | % | 65.02 | % | |||||||||
_______________
(1) Annualized.
(2) The efficiency ratio is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income).
| Earnings Metrics, as Adjusted | Nine Months Ended | ||||||
| (in thousands, except per share data) | September 30, 2024 | September 30, 2023 | |||||
| Net Income | $ | 23,439 | $ | 26,841 | |||
| Add: Merger-Related Expenses, Net of Tax | 1,157 | — | |||||
| Net Income, as Adjusted | $ | 24,596 | $ | 26,841 | |||
| Weighted average common shares - Diluted | 13,909 | 14,112 | |||||
| Earnings per share - Diluted | $ | 1.69 | $ | 1.90 | |||
| Earnings per share - Diluted, as Adjusted | $ | 1.77 | $ | 1.90 | |||
| Average Assets | $ | 2,363,928 | $ | 2,183,521 | |||
| Return on Average Assets(1) | 1.32 | % | 1.64 | % | |||
| Return on Average Assets, as Adjusted(1) | 1.39 | % | 1.64 | % | |||
| Average Equity | $ | 265,500 | $ | 237,986 | |||
| Return on Average Equity(1) | 11.79 | % | 15.08 | % | |||
| Return on Average Equity, as Adjusted(1) | 12.37 | % | 15.08 | % | |||
| Net Interest Income | $ | 110,419 | $ | 106,637 | |||
| Noninterest Income | 19,497 | 19,039 | |||||
| Total Revenue | $ | 129,916 | $ | 125,676 | |||
| Noninterest Expense | $ | 88,705 | $ | 83,860 | |||
| Efficiency Ratio(2) | 68.28 | % | 66.73 | % | |||
| Noninterest Expense | $ | 88,705 | $ | 83,860 | |||
| Less: Merger-Related Expenses | 1,315 | — | |||||
| Noninterest Expense, as Adjusted | $ | 87,390 | $ | 83,860 | |||
| Efficiency Ratio, as Adjusted(2) | 67.27 | % | 66.73 | % | |||
_______________
(1) Annualized.
(2) The efficiency ratio is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income).
| Net Interest Margin, as Adjusted | Quarter Ended | ||||||||||||||||||
| (in thousands) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||
| Net Interest Income | $ | 38,354 | $ | 37,057 | $ | 35,008 | $ | 34,889 | $ | 36,810 | |||||||||
| Less: Credit Card Loan Income | 15,137 | 15,205 | 14,457 | 14,677 | 15,792 | ||||||||||||||
| Net Interest Income, as Adjusted | $ | 23,217 | $ | 21,852 | $ | 20,551 | $ | 20,212 | $ | 21,018 | |||||||||
| Average Interest Earning Assets | 2,380,946 | 2,307,070 | 2,254,663 | 2,162,459 | 2,176,477 | ||||||||||||||
| Less: Average Credit Card Loans | 119,458 | 111,288 | 110,483 | 114,551 | 116,814 | ||||||||||||||
| Total Average Interest Earning Assets, as Adjusted | $ | 2,261,488 | $ | 2,195,782 | $ | 2,144,180 | $ | 2,047,908 | $ | 2,059,663 | |||||||||
| Net Interest Margin, as Adjusted | 4.08 | % | 4.00 | % | 3.85 | % | 3.92 | % | 4.05 | % | |||||||||
| Net Interest Margin, as Adjusted | Nine Months Ended | ||||||
| (in thousands) | September 30, 2024 | September 30, 2023 | |||||
| Net Interest Income | $ | 110,419 | $ | 106,637 | |||
| Less: Credit Card Loan Income | 44,798 | 46,419 | |||||
| Net Interest Income, as Adjusted | $ | 65,621 | $ | 60,218 | |||
| Average Interest Earning Assets | 2,314,470 | 2,139,398 | |||||
| Less: Average Credit Card Loans | 113,764 | 114,416 | |||||
| Total Average Interest Earning Assets, as Adjusted | $ | 2,200,706 | $ | 2,024,982 | |||
| Net Interest Margin, as Adjusted | 3.98 | % | 3.98 | % | |||
| Portfolio Loans Receivable Yield, as Adjusted | Quarter Ended | ||||||||||||||||||
| (in thousands) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||
| Portfolio Loans Receivable Interest Income | $ | 49,886 | $ | 48,143 | $ | 45,908 | $ | 45,026 | $ | 45,274 | |||||||||
| Less: Credit Card Loan Income | 15,137 | 15,205 | 14,457 | 14,677 | 15,792 | ||||||||||||||
| Portfolio Loans Receivable Interest Income, as Adjusted | $ | 34,749 | $ | 32,938 | $ | 31,451 | $ | 30,349 | $ | 29,482 | |||||||||
| Average Portfolio Loans Receivable | 2,053,619 | 1,992,630 | 1,927,372 | 1,863,298 | 1,847,772 | ||||||||||||||
| Less: Average Credit Card Loans | 119,458 | 111,288 | 110,483 | 114,551 | 116,814 | ||||||||||||||
| Total Average Portfolio Loans Receivable, as Adjusted | $ | 1,934,161 | $ | 1,881,342 | $ | 1,816,889 | $ | 1,748,747 | $ | 1,730,958 | |||||||||
| Portfolio Loans Receivable Yield, as Adjusted | 7.15 | % | 7.04 | % | 6.96 | % | 6.89 | % | 6.76 | % | |||||||||
| Portfolio Loans Receivable Yield, as Adjusted | Nine Months Ended | ||||||
| (in thousands) | September 30, 2024 | September 30, 2023 | |||||
| Portfolio Loans Receivable Interest Income | $ | 143,937 | $ | 129,352 | |||
| Less: Credit Card Loan Income | 44,798 | 46,419 | |||||
| Portfolio Loans Receivable Interest Income, as Adjusted | $ | 99,139 | $ | 82,933 | |||
| Average Portfolio Loans Receivable | 1,991,435 | 1,801,355 | |||||
| Less: Average Credit Card Loans | 113,764 | 114,416 | |||||
| Total Average Portfolio Loans Receivable, as Adjusted | $ | 1,877,671 | $ | 1,686,939 | |||
| Portfolio Loans Receivable Yield, as Adjusted | 7.05 | % | 6.57 | % | |||
| Pre-tax, Pre-Provision Net Revenue ("PPNR") | Quarter Ended | ||||||||||||||||||
| (in thousands) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||
| Net Income | $ | 8,672 | $ | 8,205 | $ | 6,562 | $ | 9,030 | $ | 9,788 | |||||||||
| Add: Income Tax Expense | 2,827 | 2,728 | 2,062 | 2,186 | 2,998 | ||||||||||||||
| Add: Provision for Credit Losses | 3,748 | 3,417 | 2,727 | 2,808 | 2,280 | ||||||||||||||
| Add: Provision for (Release of) Credit Losses on Unfunded Commitments | 17 | 104 | 142 | (106 | ) | 24 | |||||||||||||
| Pre-tax, Pre-Provision Net Revenue ("PPNR") | $ | 15,264 | $ | 14,454 | $ | 11,493 | $ | 13,918 | $ | 15,090 | |||||||||
| Pre-tax, Pre-Provision Net Revenue ("PPNR") | Nine Months Ended | ||||||
| (in thousands) | September 30, 2024 | September 30, 2023 | |||||
| Net Income | $ | 23,439 | $ | 26,841 | |||
| Add: Income Tax Expense | 7,617 | 8,168 | |||||
| Add: Provision for Credit Losses | 9,892 | 6,802 | |||||
| Add: Provision for Credit Losses on Unfunded Commitments | 263 | 5 | |||||
| Pre-tax, Pre-Provision Net Revenue ("PPNR") | $ | 41,211 | $ | 41,816 | |||
| PPNR, as Adjusted | Quarter Ended | ||||||||||||||||||
| (in thousands) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||
| Net Income | $ | 8,672 | $ | 8,205 | $ | 6,562 | $ | 9,030 | $ | 9,788 | |||||||||
| Add: Income Tax Expense | 2,827 | 2,728 | 2,062 | 2,186 | 2,998 | ||||||||||||||
| Add: Provision for Credit Losses | 3,748 | 3,417 | 2,727 | 2,808 | 2,280 | ||||||||||||||
| Add: Provision for (Release of) Credit Losses on Unfunded Commitments | 17 | 104 | 142 | (106 | ) | 24 | |||||||||||||
| Add: Merger-Related Expenses | 520 | 83 | 712 | — | — | ||||||||||||||
| PPNR, as Adjusted | $ | 15,784 | $ | 14,537 | $ | 12,205 | $ | 13,918 | $ | 15,090 | |||||||||
| PPNR, as Adjusted | Nine Months Ended | ||||||
| (in thousands) | September 30, 2024 | September 30, 2023 | |||||
| Net Income | $ | 23,439 | $ | 26,841 | |||
| Add: Income Tax Expense | 7,617 | 8,168 | |||||
| Add: Provision for Credit Losses | 9,892 | 6,802 | |||||
| Add: Provision for Credit Losses on Unfunded Commitments | 263 | 5 | |||||
| Add: Merger-Related Expenses | 1,315 | — | |||||
| PPNR, as Adjusted | $ | 42,526 | $ | 41,816 | |||
| Allowance for Credit Losses to Total Portfolio Loans | Quarter Ended | ||||||||||||||||||
| (in thousands) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||
| Allowance for Credit Losses | $ | 31,925 | $ | 30,832 | $ | 29,350 | $ | 28,610 | $ | 28,279 | |||||||||
| Total Portfolio Loans | 2,107,522 | 2,021,588 | 1,964,525 | 1,903,288 | 1,862,679 | ||||||||||||||
| Allowance for Credit Losses to Total Portfolio Loans | 1.51 | % | 1.53 | % | 1.49 | % | 1.50 | % | 1.52 | % | |||||||||
| Nonperforming Assets to Total Assets | Quarter Ended | ||||||||||||||||||
| (in thousands) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||
| Total Nonperforming Assets | $ | 15,460 | $ | 14,053 | $ | 14,361 | $ | 16,042 | $ | 15,236 | |||||||||
| Total Assets | 2,560,788 | 2,438,583 | 2,324,238 | 2,226,176 | 2,272,484 | ||||||||||||||
| Nonperforming Assets to Total Assets | 0.60 | % | 0.58 | % | 0.62 | % | 0.72 | % | 0.67 | % | |||||||||
| Nonperforming Loans to Total Portfolio Loans | Quarter Ended | ||||||||||||||||||
| (in thousands) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||
| Total Nonperforming Loans | $ | 15,460 | $ | 14,053 | $ | 14,361 | $ | 16,042 | $ | 15,236 | |||||||||
| Total Portfolio Loans | 2,107,522 | 2,021,588 | 1,964,525 | 1,903,288 | 1,862,679 | ||||||||||||||
| Nonperforming Loans to Total Portfolio Loans | 0.73 | % | 0.70 | % | 0.73 | % | 0.84 | % | 0.82 | % | |||||||||
| Net Charge-Offs to Average Portfolio Loans | Quarter Ended | ||||||||||||||||||
| (in thousands) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||
| Total Net Charge-Offs | $ | 2,655 | $ | 1,935 | $ | 1,987 | $ | 2,477 | $ | 1,780 | |||||||||
| Total Average Portfolio Loans | 2,053,619 | 1,992,630 | 1,927,372 | 1,863,298 | 1,847,772 | ||||||||||||||
| Net Charge-Offs to Average Portfolio Loans, Annualized | 0.51 | % | 0.39 | % | 0.41 | % | 0.53 | % | 0.38 | % | |||||||||
| Net Charge-offs to Average Portfolio Loans | Nine Months Ended | ||||||
| (in thousands) | September 30, 2024 | September 30, 2023 | |||||
| Total Net Charge-Offs | $ | 6,577 | $ | 5,996 | |||
| Total Average Portfolio Loans | 1,991,435 | 1,801,355 | |||||
| Net Charge-Offs to Average Portfolio Loans, Annualized | 0.44 | % | 0.45 | % | |||
| Tangible Book Value per Share | Quarter Ended | ||||||||||||||||||
| (in thousands, except share and per share data) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||
| Total Stockholders' Equity | $ | 280,111 | $ | 267,854 | $ | 259,465 | $ | 254,860 | $ | 242,878 | |||||||||
| Less: Preferred Equity | — | — | — | — | — | ||||||||||||||
| Less: Intangible Assets | — | — | — | — | — | ||||||||||||||
| Tangible Common Equity | $ | 280,111 | $ | 267,854 | $ | 259,465 | $ | 254,860 | $ | 242,878 | |||||||||
| Period End Shares Outstanding | 13,917,891 | 13,910,467 | 13,889,563 | 13,922,532 | 13,893,083 | ||||||||||||||
| Tangible Book Value per Share | $ | 20.13 | $ | 19.26 | $ | 18.68 | $ | 18.31 | $ | 17.48 | |||||||||
ABOUT CAPITAL BANCORP, INC.
Capital Bancorp, Inc., Rockville, Maryland is a registered bank holding company incorporated under the laws of Maryland. Capital Bancorp has been providing financial services since 1999 and now operates bank branches in four locations in the greater Washington, D.C. and Baltimore, Maryland markets and one bank branch in Fort Lauderdale, Florida. Capital Bancorp had assets of approximately
FORWARD-LOOKING STATEMENTS
This earnings release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Any statements about our management’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” "optimistic," “intends” and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements. Accordingly, we caution you that any such forward-looking statements are not a guarantee of future performance and that actual results may prove to be materially different from the results expressed or implied by the forward-looking statements due to a number of factors. For details on some of the factors that could affect these expectations, see risk factors and other cautionary language included in the Company's Annual Report on Form 10-K and other periodic and current reports filed with the Securities and Exchange Commission.
While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: changes in general economic, political, or industry conditions; geopolitical concerns, including the ongoing wars in Ukraine and in the Middle East; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market, and monetary fluctuations; volatility and disruptions in global capital and credit markets; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services; the impact of changes in financial services policies, laws, and regulations, including those concerning taxes, banking, securities, and insurance, and the application thereof by regulatory bodies; cybersecurity threats and the cost of defending against them, including the costs of compliance with potential legislation to combat cybersecurity at a state, national, or global level; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; the expected cost savings, synergies and other financial benefits from the acquisition of IFHI or any other acquisition the Company has made or may make might not be realized within the expected time frames or at all; the effect of acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations; and other factors that may affect our future results.
These forward-looking statements are made as of the date of this communication, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by law.
FINANCIAL CONTACT: Dominic Canuso (301) 468-8848 x1403
MEDIA CONTACT: Ed Barry (240) 283-1912
WEB SITE: www.CapitalBankMD.com
FAQ
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