Press Release
Capital Bancorp, Inc. Continued Deposit and Loan Growth Leads to Strong Net Interest Margin, Declares Quarterly Dividend of $0.08
The Company also declared a cash dividend on its common stock of
"We saw a significant number of positive signs in our performance this quarter and are making investments in our future,” said
“Despite some of the year-over-year declines, the Board is pleased with Capital Bank’s performance during the quarter.” said
Second Quarter 2023 Highlights
Earnings Summary - Net income of
- Net interest income of
$35 .3 million increased$0.9 million compared to$34.5 million for the first quarter 2023. Interest income of$45.1 million increased$1.7 million compared to$43.4 million for the first quarter 2023 driven by loan growth, as average portfolio loans increased$50 .3 million compared to the first quarter 2023 in tandem with slightly higher rates in the second quarter 2023. Interest expense of$9.7 million increased$0.8 million compared to$8.9 million for the first quarter 2023 driven by an increase in the cost of funds. Interest expense from interest-bearing deposits increased$1.7 million , as average interest-bearing deposits increased$88 .0 million while interest expense from borrowed funds decreased$0.8 million , as average borrowed funds decreased$75 .2 million from the first quarter 2023. - The provision for credit losses was
$2 .9 million, an increase of$1.2 million from the first quarter 2023 driven by moderate changes to the economic forecast and loan growth. - Noninterest income of
$6 .7 million increased$0.7 million compared to$6.0 million for the first quarter of 2023. Credit card fees increased$0.5 million as the number of open customer accounts increased quarter over quarter, which resulted in higher interchange and other income. - Noninterest expense of
$29 .6 million increased$3.4 million compared to$26.2 million for the first quarter 2023. Within this category, significant variances included the following:- Advertising expense of
$2.6 million increased$2.1 million due to marketing efforts related toOpenSky ® customer acquisition. - Other operating expenses of
$3.4 million increased$0.8 million including$0.2 million related to outside service provider expense,$0.2 million related toFDIC assessment expense, with the remainder among other categories. - Occupancy and equipment expense of
$1.5 million increased$0.3 million related to software licensing expenses. - Loan processing expense of
$0.7 million increased$0.3 million in line with the growth in the loan portfolio. - Professional fees of
$2.6 million increased$0.2 million , attributable primarily to increases in third party consulting and legal fees. - Salaries and employee benefits of
$12.1 million decreased$0.4 million reflecting a seasonal increase in payroll taxes and benefit expense in the first quarter 2023.
- Advertising expense of
Balance Sheet – Total assets of
- Cash and cash equivalents decreased
$21 .0 million. - Net portfolio loans of
$1.8 billion increased$50.9 million , representing 11.4% annualized growth. - Total deposits of
$1 .9 billion atJune 30, 2023 decreased$10 .0 million, or 0.5%, fromMarch 31, 2023 , while total average deposits increased$110 .4 million, or 25.0% annualized, quarter over quarter.Federal Home Loan Bank advances decreased$10 .0 million, or 31.3%, fromMarch 31, 2023 . - The investment securities portfolio continues to be classified as available for sale and had a fair market value of
$208.5 million , or 9.4% of total assets, atJune 30, 2023 . The amortized cost of the investment securities portfolio was$229.9 million , with an effective duration of 3.48 years.U.S. Treasury securities represent 74.6% of the overall investment portfolio. Investment securities available for sale decreased$47 .3 million, primarily due to$44.0 million of maturingU.S. Treasuries in the second quarter 2023. The accumulated other comprehensive loss ("AOCI Loss") on the investment securities portfolio increased$2.1 million during the quarter to$16.1 million as ofJune 30, 2023 , which represents 6.8% of total stockholders' equity. The Company does not have a held to maturity ("HTM") investment securities portfolio.
Performance and Efficiency Ratios – Annualized return on average assets ("ROAA") and annualized return on average equity ("ROAE") were 1.34% and 12.30%, respectively, for the three months ended
- The efficiency ratio was 70.4% for the three months ended
June 30, 2023 , compared to 64.7% for the three months endedMarch 31, 2023 . The change was primarily attributable to an increase in noninterest expense.
Stable Net Interest Margin - Net interest margin was 6.63% for the three months ended
- The average yield on interest earning assets increased 9 basis points compared to the first quarter 2023. The average yield on investment securities available for sale decreased 4 basis points to 1.99%, and the average yield on portfolio loans increased 1 basis point.
- The average rate on interest-bearing liabilities increased 20 basis points compared to the first quarter 2023. Increases in average rates include money market accounts increasing 39 basis points to 3.47% and time deposits increasing 37 basis points to 4.30%, while average balances increased
$20.7 million and$47.0 million , respectively, compared to the first quarter 2023. The average rate on borrowed funds decreased 95 basis points to 3.07%, while average balances decreased$75.2 million compared to the first quarter 2023.
Deposits and Cost of Funds - Total deposits at
- Total brokered time deposits of
$128.7 million decreased$53.2 million , or 29.2%, compared toMarch 31, 2023 . Excluding the decline in brokered time deposits during the quarter, total deposits increased$43.1 million , or 9.8% annualized. - Average noninterest-bearing deposits increased 3.4% compared to
March 31, 2023 , and represented 36.0% of total average deposits atJune 30, 2023 . - The elevated interest rate environment has driven up the cost of interest-bearing liabilities to 3.13% for the quarter ended
June 30, 2023 , compared to 2.93% for the first quarter 2023.
Robust Capital Positions - As of
Liquidity - Total sources of available borrowings at
Continued Strong Portfolio Loan Growth - Portfolio loans, excluding credit cards, increased by
Credit Metrics - Nonperforming assets ("NPAs") decreased 2 basis points to 0.71% of total assets at
Revenues - Total revenue of
Noninterest Expense - Total noninterest expense of
Loan Balances -
2023 Highlights
Earnings Summary - Net income of
- Improved interest income was offset by increased deposit costs that were a result of the rising interest rate environment and a shift within the portfolio from noninterest-bearing to interest-bearing deposits and increased time deposits and FHLB balances. Further, SBA-PPP income totaled
$3.2 million for the six months endedJune 30, 2022 with no comparable amount in 2023. A decline in card fees of$3.2 million resulted in lower total noninterest income of$12.7 million for the six months endedJune 30, 2023 , as compared to$16.7 million for the same period in 2022.
Balance Sheet Growth - Total assets of
Performance and Efficiency Ratios - Annualized ROAA and ROAE were 1.59% and 14.60%, respectively, for the six months ended
- The efficiency ratio was 67.60% for the six months ended
June 30, 2023 , compared to 63.52% for the six months endedJune 30, 2022 .
Net Interest Margin - Net interest margin was 6.64%, or 3.94% excluding credit card and SBA-PPP loans, for the six months ended
Robust Capital Positions - As of
Strong Portfolio Loan Growth - Portfolio loans, excluding credit cards, increased by
Revenues - Total revenue of
Noninterest Expense - Total noninterest expense of
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited | |||||||||||||||||||||||||
Quarter Ended | 2Q23 vs 1Q23 | 2Q23 vs 2Q22 | |||||||||||||||||||||||
(in thousands except per share data) | 2023 |
2023 |
2022 |
$ Change | % Change |
$ Change | % Change |
||||||||||||||||||
Earnings Summary | |||||||||||||||||||||||||
Interest income | $ | 45,080 | $ | 43,416 | $ | 36,556 | $ | 1,664 | 3.8 | % | $ | 8,524 | 23.3 | % | |||||||||||
Interest expense | 9,740 | 8,929 | 1,156 | 811 | 9.1 | % | 8,584 | 742.6 | % | ||||||||||||||||
Net interest income | 35,340 | 34,487 | 35,400 | 853 | 2.5 | % | (60 | ) | (0.2 | )% | |||||||||||||||
Provision for credit losses | 2,862 | 1,660 | 2,035 | 1,202 | 72.4 | % | 827 | 40.6 | % | ||||||||||||||||
Noninterest income | 6,687 | 6,026 | 8,362 | 661 | 11.0 | % | (1,675 | ) | (20.0 | )% | |||||||||||||||
Noninterest expense | 29,592 | 26,203 | 27,130 | 3,389 | 12.9 | % | 2,462 | 9.1 | % | ||||||||||||||||
Income before income taxes | 9,573 | 12,650 | 14,597 | (3,077 | ) | (24.3 | )% | (5,024 | ) | (34.4 | )% | ||||||||||||||
Income tax expense | 2,255 | 2,915 | 3,089 | (660 | ) | (22.6 | )% | (834 | ) | (27.0 | )% | ||||||||||||||
Net income | $ | 7,318 | $ | 9,735 | $ | 11,508 | $ | (2,417 | ) | (24.8 | )% | $ | (4,190 | ) | (36.4 | )% | |||||||||
Pre-tax pre-provision net revenue ("PPNR") (1) | $ | 12,435 | $ | 14,310 | $ | 16,632 | $ | (1,875 | ) | (13.1 | )% | $ | (4,197 | ) | (25.2 | )% | |||||||||
Weighted average common shares - Basic | 14,025 | 14,159 | 14,007 | (134 | ) | (0.9 | )% | 18 | 0.1 | % | |||||||||||||||
Weighted average common shares - Diluted | 14,059 | 14,272 | 14,313 | (213 | ) | (1.5 | )% | (254 | ) | (1.8 | )% | ||||||||||||||
Earnings per share - Basic | $ | 0.52 | $ | 0.69 | $ | 0.82 | $ | (0.17 | ) | (24.6 | )% | $ | (0.30 | ) | (36.6 | )% | |||||||||
Earnings per share - Diluted | $ | 0.52 | $ | 0.68 | $ | 0.80 | $ | (0.16 | ) | (23.5 | )% | $ | (0.28 | ) | (35.0 | )% | |||||||||
Return on average assets (annualized) | 1.34 | % | 1.84 | % | 2.23 | % | (0.50 | )% | (27.2 | )% | (0.89 | )% | (39.9 | )% | |||||||||||
Return on average assets, excluding impact of SBA-PPP loans (annualized) (1) | 1.34 | % | 1.84 | % | 2.04 | % | (0.50 | )% | (27.2 | )% | (0.70 | )% | (34.3 | )% | |||||||||||
Return on average equity (annualized) | 12.30 | % | 16.98 | % | 22.16 | % | (4.68 | )% | (27.6 | )% | (9.86 | )% | (44.5 | )% |
Six Months Ended | ||||||||||||||||
(in thousands except per share data) | 2023 | 2022 | $ Change | % Change |
||||||||||||
Earnings Summary | ||||||||||||||||
Interest income | $ | 88,496 | $ | 70,957 | $ | 17,539 | 24.7 | % | ||||||||
Interest expense | 18,669 | 2,226 | 16,443 | 738.7 | % | |||||||||||
Net interest income | 69,827 | 68,731 | 1,096 | 1.6 | % | |||||||||||
Provision for credit losses | 4,522 | 2,987 | 1,535 | 51.4 | % | |||||||||||
Noninterest income | 12,713 | 16,650 | (3,937 | ) | (23.6 | )% | ||||||||||
Noninterest expense | 55,795 | 54,232 | 1,563 | 2.9 | % | |||||||||||
Income before income taxes | 22,223 | 28,162 | (5,939 | ) | (21.1 | )% | ||||||||||
Income tax expense | 5,170 | 6,443 | (1,273 | ) | (19.8 | )% | ||||||||||
Net income | $ | 17,053 | $ | 21,719 | $ | (4,666 | ) | (21.5 | )% | |||||||
Pre-tax pre-provision net revenue ("PPNR") (1) | $ | 26,745 | $ | 31,149 | $ | (4,404 | ) | (14.1 | )% | |||||||
Weighted average common shares - Basic | 14,092 | 13,998 | 94 | 0.7 | % | |||||||||||
Weighted average common shares - Diluted | 14,210 | 14,323 | (113 | ) | (0.8 | )% | ||||||||||
Earnings per share - Basic | $ | 1.21 | $ | 1.55 | $ | (0.34 | ) | (21.9 | )% | |||||||
Earnings per share - Diluted | $ | 1.20 | $ | 1.52 | $ | (0.32 | ) | (21.1 | )% | |||||||
Return on average assets (annualized) | 1.59 | % | 2.12 | % | (0.53 | )% | (25.0 | )% | ||||||||
Return on average assets, excluding impact of SBA-PPP loans (annualized) (1) | 1.59 | % | 1.86 | % | (0.27 | )% | (14.5 | )% | ||||||||
Return on average equity (annualized) | 14.60 | % | 21.25 | % | (6.65 | )% | (31.3 | )% |
Quarter Ended | Quarter Ended | ||||||||||||||||
(in thousands except per share data) | 2023 | 2022 | % Change | 2023 | 2022 | 2022 | |||||||||||
Balance Sheet Highlights | |||||||||||||||||
Assets | $ | 2,227,866 | $ | 2,154,846 | 3.4 | % | $ | 2,245,286 | $ | 2,123,655 | $ | 2,009,358 | |||||
Investment securities available for sale | 208,464 | 226,509 | (8.0 | )% | 255,762 | 252,481 | 269,620 | ||||||||||
Mortgage loans held for sale | 10,146 | 11,708 | (13.3 | )% | 9,620 | 7,416 | 6,875 | ||||||||||
SBA-PPP loans, net of fees | 1,090 | 15,864 | (93.1 | )% | 2,037 | 2,163 | 2,662 | ||||||||||
Portfolio loans receivable (2) | 1,837,041 | 1,607,677 | 14.3 | % | 1,786,109 | 1,728,592 | 1,648,001 | ||||||||||
Allowance for credit losses | 27,495 | 26,419 | 4.1 | % | 26,216 | 26,385 | 26,091 | ||||||||||
Deposits | 1,934,361 | 1,888,920 | 2.4 | % | 1,944,374 | 1,758,072 | 1,737,591 | ||||||||||
FHLB borrowings | 22,000 | 22,000 | — | % | 32,000 | 107,000 | 22,000 | ||||||||||
Other borrowed funds | 12,062 | 12,062 | — | % | 12,062 | 12,062 | 12,062 | ||||||||||
Total stockholders' equity | 237,435 | 207,316 | 14.5 | % | 234,517 | 224,015 | 214,005 | ||||||||||
Tangible common equity (1) | 237,435 | 207,316 | 14.5 | % | 234,517 | 224,015 | 214,005 | ||||||||||
Common shares outstanding | 13,981 | 14,010 | (0.2 | )% | 14,083 | 14,139 | 14,039 | ||||||||||
Tangible book value per share (1) | $ | 16.98 | $ | 14.80 | 14.7 | % | $ | 16.65 | $ | 15.84 | $ | 15.24 |
______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.
(2) Loans are reflected net of deferred fees and costs.
Operating Results - Comparison of Three Months Ended
For the three months ended
For the three months ended
For the three months ended
For the three months ended
Credit card loan balances, net of reserves, decreased by
The efficiency ratio for the three months ended
For the three months ended
Operating Results - Comparison of Six Months Ended
For the six months ended
For the six months ended
For the six months ended
For the six months ended
The efficiency ratio for the six months ended
For the six months ended
Financial Condition
Total assets at
The Company recorded a provision for credit losses of
Deposits were
Stockholders’ equity increased to
Consolidated Statements of Income (Unaudited) | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
(in thousands) | 2023 |
2023 |
2022 |
2022 |
2022 |
2023 |
2022 |
||||||||||||||
Interest income | |||||||||||||||||||||
Loans, including fees | $ | 42,991 | $ | 41,275 | $ | 38,763 | $ | 36,451 | $ | 35,304 | $ | 84,266 | $ | 69,193 | |||||||
Investment securities available for sale | 1,266 | 1,377 | 1,402 | 1,362 | 779 | 2,643 | 1,149 | ||||||||||||||
Federal funds sold and other | 823 | 764 | 1,183 | 527 | 473 | 1,587 | 615 | ||||||||||||||
Total interest income | 45,080 | 43,416 | 41,348 | 38,340 | 36,556 | 88,496 | 70,957 | ||||||||||||||
Interest expense | |||||||||||||||||||||
Deposits | 9,409 | 7,754 | 4,377 | 1,386 | 964 | 17,163 | 1,847 | ||||||||||||||
Borrowed funds | 331 | 1,175 | 1,772 | 277 | 192 | 1,506 | 379 | ||||||||||||||
Total interest expense | 9,740 | 8,929 | 6,149 | 1,663 | 1,156 | 18,669 | 2,226 | ||||||||||||||
Net interest income | 35,340 | 34,487 | 35,199 | 36,677 | 35,400 | 69,827 | 68,731 | ||||||||||||||
Provision for credit losses | 2,862 | 1,660 | 2,384 | 1,260 | 2,035 | 4,522 | 2,987 | ||||||||||||||
Net interest income after provision for credit losses | 32,478 | 32,827 | 32,815 | 35,417 | 33,365 | 65,305 | 65,744 | ||||||||||||||
Noninterest income | |||||||||||||||||||||
Service charges on deposits | 245 | 229 | 222 | 199 | 183 | 474 | 346 | ||||||||||||||
Credit card fees | 4,706 | 4,210 | 4,314 | 5,524 | 6,210 | 8,916 | 12,134 | ||||||||||||||
Mortgage banking revenue | 1,332 | 1,155 | 554 | 969 | 1,528 | 2,487 | 3,318 | ||||||||||||||
Other income | 404 | 432 | 471 | 416 | 441 | 836 | 852 | ||||||||||||||
Total noninterest income | 6,687 | 6,026 | 5,561 | 7,108 | 8,362 | 12,713 | 16,650 | ||||||||||||||
Noninterest expenses | |||||||||||||||||||||
Salaries and employee benefits | 12,143 | 12,554 | 11,769 | 10,747 | 10,071 | 24,697 | 20,381 | ||||||||||||||
Occupancy and equipment | 1,536 | 1,213 | 1,388 | 1,138 | 1,313 | 2,749 | 2,339 | ||||||||||||||
Professional fees | 2,608 | 2,374 | 2,426 | 3,848 | 2,417 | 4,982 | 4,738 | ||||||||||||||
Data processing | 6,559 | 6,530 | 6,697 | 7,178 | 7,266 | 13,089 | 15,542 | ||||||||||||||
Advertising | 2,646 | 517 | 726 | 1,632 | 2,223 | 3,163 | 3,862 | ||||||||||||||
Loan processing | 660 | 349 | 350 | 625 | 335 | 1,009 | 727 | ||||||||||||||
Foreclosed real estate expenses, net | — | 6 | — | — | — | 6 | — | ||||||||||||||
Other operating | 3,440 | 2,660 | 3,378 | 2,926 | 3,505 | 6,100 | 6,643 | ||||||||||||||
Total noninterest expenses | 29,592 | 26,203 | 26,734 | 28,094 | 27,130 | 55,795 | 54,232 | ||||||||||||||
Income before income taxes | 9,573 | 12,650 | 11,642 | 14,431 | 14,597 | 22,223 | 28,162 | ||||||||||||||
Income tax expense | 2,255 | 2,915 | 2,651 | 3,336 | 3,089 | 5,170 | 6,443 | ||||||||||||||
Net income | $ | 7,318 | $ | 9,735 | $ | 8,991 | $ | 11,095 | $ | 11,508 | $ | 17,053 | $ | 21,719 |
Consolidated Balance Sheets | ||||||||||||||||||||
(unaudited) | (unaudited) | (audited) | (unaudited) | (unaudited) | ||||||||||||||||
(in thousands except share data) | 2023 |
2023 |
2022 |
2022 |
2022 |
|||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 18,619 | $ | 14,477 | $ | 19,963 | $ | 14,774 | $ | 14,776 | ||||||||||
Interest-bearing deposits at other financial institutions | 100,343 | 125,448 | 39,764 | 20,867 | 234,823 | |||||||||||||||
Federal funds sold | 376 | 462 | 20,688 | 1,421 | 1,285 | |||||||||||||||
Total cash and cash equivalents | 119,338 | 140,387 | 80,415 | 37,062 | 250,884 | |||||||||||||||
Investment securities available for sale | 208,464 | 255,762 | 252,481 | 269,620 | 226,509 | |||||||||||||||
Marketable equity securities | — | — | — | 232 | 245 | |||||||||||||||
Restricted investments | 3,803 | 4,215 | 7,362 | 3,627 | 3,615 | |||||||||||||||
Loans held for sale | 10,146 | 9,620 | 7,416 | 6,875 | 11,708 | |||||||||||||||
1,090 | 2,037 | 2,163 | 2,662 | 15,864 | ||||||||||||||||
Portfolio loans receivable, net of deferred fees and costs | 1,837,041 | 1,786,109 | 1,728,592 | 1,648,001 | 1,607,677 | |||||||||||||||
Less allowance for credit losses | (27,495 | ) | (26,216 | ) | (26,385 | ) | (26,091 | ) | (26,419 | ) | ||||||||||
Total portfolio loans held for investment, net | 1,809,546 | 1,759,893 | 1,702,207 | 1,621,910 | 1,581,258 | |||||||||||||||
Premises and equipment, net | 5,494 | 5,367 | 3,386 | 3,212 | 3,315 | |||||||||||||||
Accrued interest receivable | 10,155 | 9,985 | 9,489 | 7,890 | 7,276 | |||||||||||||||
Deferred tax asset | 13,616 | 12,898 | 13,777 | 14,047 | 12,929 | |||||||||||||||
Bank owned life insurance | 37,041 | 36,781 | 36,524 | 36,267 | 36,011 | |||||||||||||||
Other assets | 9,173 | 8,341 | 8,435 | 5,954 | 5,232 | |||||||||||||||
Total assets | $ | 2,227,866 | $ | 2,245,286 | $ | 2,123,655 | $ | 2,009,358 | $ | 2,154,846 | ||||||||||
Liabilities | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Noninterest-bearing | $ | 693,129 | $ | 705,801 | $ | 674,313 | $ | 806,033 | $ | 842,363 | ||||||||||
Interest-bearing | 1,241,232 | 1,238,573 | 1,083,759 | 931,558 | 1,046,557 | |||||||||||||||
Total deposits | 1,934,361 | 1,944,374 | 1,758,072 | 1,737,591 | 1,888,920 | |||||||||||||||
22,000 | 32,000 | 107,000 | 22,000 | 22,000 | ||||||||||||||||
Other borrowed funds | 12,062 | 12,062 | 12,062 | 12,062 | 12,062 | |||||||||||||||
Accrued interest payable | 3,029 | 1,977 | 1,031 | 481 | 300 | |||||||||||||||
Other liabilities | 18,979 | 20,356 | 21,475 | 23,219 | 24,248 | |||||||||||||||
Total liabilities | 1,990,431 | 2,010,769 | 1,899,640 | 1,795,353 | 1,947,530 | |||||||||||||||
Stockholders' equity | ||||||||||||||||||||
Common stock | 140 | 141 | 141 | 140 | 140 | |||||||||||||||
Additional paid-in capital | 55,856 | 57,277 | 58,190 | 56,532 | 55,762 | |||||||||||||||
Retained earnings | 197,490 | 191,058 | 182,435 | 174,916 | 164,750 | |||||||||||||||
Accumulated other comprehensive loss | (16,051 | ) | (13,959 | ) | (16,751 | ) | (17,583 | ) | (13,336 | ) | ||||||||||
Total stockholders' equity | 237,435 | 234,517 | 224,015 | 214,005 | 207,316 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 2,227,866 | $ | 2,245,286 | $ | 2,123,655 | $ | 2,009,358 | $ | 2,154,846 |
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 |
Three Months Ended |
Three Months Ended |
|||||||||||||||||||||||||
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 | $ | 66,401 | $ | 733 | 4.43 | % | $ | 62,566 | $ | 615 | 3.99 | % | $ | 218,251 | $ | 429 | 0.79 | % | |||||||||
Federal funds sold | 1,638 | 20 | 4.90 | 2,054 | 18 | 3.62 | 1,655 | 2 | 0.48 | ||||||||||||||||||
Investment securities available for sale | 255,057 | 1,266 | 1.99 | 274,685 | 1,377 | 2.03 | 215,172 | 779 | 1.45 | ||||||||||||||||||
Restricted investments | 4,185 | 71 | 6.80 | 7,346 | 130 | 7.17 | 3,854 | 42 | 4.37 | ||||||||||||||||||
Loans held for sale | 7,047 | 111 | 6.32 | 4,695 | 77 | 6.65 | 11,447 | 134 | 4.70 | ||||||||||||||||||
SBA-PPP loans receivable | 1,808 | 7 | 1.55 | 2,099 | 8 | 1.50 | 28,870 | 1,120 | 15.56 | ||||||||||||||||||
Portfolio loans receivable(2) | 1,800,800 | 42,872 | 9.55 | 1,750,539 | 41,191 | 9.54 | 1,532,671 | 34,050 | 8.91 | ||||||||||||||||||
Total interest earning assets | 2,136,936 | 45,080 | 8.46 | 2,103,984 | 43,416 | 8.37 | 2,011,920 | 36,556 | 7.29 | ||||||||||||||||||
Noninterest earning assets | 47,415 | 40,265 | 56,298 | ||||||||||||||||||||||||
Total assets | $ | 2,184,351 | $ | 2,144,249 | $ | 2,068,218 | |||||||||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||
Interest-bearing demand accounts | $ | 207,264 | 67 | 0.13 | $ | 186,184 | 70 | 0.15 | $ | 259,192 | 38 | 0.06 | |||||||||||||||
Savings | 5,822 | 2 | 0.14 | 6,502 | 1 | 0.05 | 9,913 | 1 | 0.04 | ||||||||||||||||||
Money market accounts | 625,515 | 5,411 | 3.47 | 604,864 | 4,587 | 3.08 | 566,303 | 396 | 0.28 | ||||||||||||||||||
Time deposits | 366,421 | 3,929 | 4.30 | 319,449 | 3,096 | 3.93 | 160,279 | 529 | 1.32 | ||||||||||||||||||
Borrowed funds | 43,183 | 331 | 3.07 | 118,379 | 1,175 | 4.02 | 34,062 | 192 | 2.27 | ||||||||||||||||||
Total interest-bearing liabilities | 1,248,205 | 9,740 | 3.13 | 1,235,378 | 8,929 | 2.93 | 1,029,749 | 1,156 | 0.45 | ||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||
Noninterest-bearing liabilities | 21,104 | 22,355 | 22,647 | ||||||||||||||||||||||||
Noninterest-bearing deposits | 676,358 | 654,025 | 807,558 | ||||||||||||||||||||||||
Stockholders’ equity | 238,684 | 232,491 | 208,264 | ||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,184,351 | $ | 2,144,249 | $ | 2,068,218 | |||||||||||||||||||||
Net interest spread | 5.33 | % | 5.44 | % | 6.84 | % | |||||||||||||||||||||
Net interest income | $ | 35,340 | $ | 34,487 | $ | 35,400 | |||||||||||||||||||||
Net interest margin(3) | 6.63 | % | 6.65 | % | 7.06 | % |
_______________
(1) Annualized.
(2) Includes nonaccrual loans.
(3) For the three months ended
Six Months Ended |
||||||||||||||||||
2023 | 2022 | |||||||||||||||||
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 | $ | 64,494 | $ | 1,348 | 4.21 | % | $ | 208,043 | $ | 530 | 0.51 | % | ||||||
Federal funds sold | 1,845 | 38 | 4.15 | 3,148 | 2 | 0.13 | ||||||||||||
Investment securities available for sale | 264,817 | 2,643 | 2.01 | 197,965 | 1,149 | 1.17 | ||||||||||||
Restricted investments | 5,757 | 201 | 7.04 | 3,810 | 83 | 4.39 | ||||||||||||
Loans held for sale | 5,878 | 188 | 6.45 | 12,467 | 245 | 3.96 | ||||||||||||
SBA-PPP loans receivable | 1,953 | 15 | 1.55 | 55,917 | 3,186 | 11.49 | ||||||||||||
Portfolio loans receivable(2) | 1,775,809 | 84,063 | 9.55 | 1,519,857 | 65,762 | 8.73 | ||||||||||||
Total interest earning assets | 2,120,553 | 88,496 | 8.42 | 2,001,207 | 70,957 | 7.15 | ||||||||||||
Noninterest earning assets | 43,858 | 61,533 | ||||||||||||||||
Total assets | $ | 2,164,411 | $ | 2,062,740 | ||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Interest-bearing demand accounts | $ | 196,782 | 137 | 0.14 | $ | 276,490 | 74 | 0.05 | ||||||||||
Savings | 6,160 | 3 | 0.10 | 9,098 | 3 | 0.07 | ||||||||||||
Money market accounts | 615,247 | 9,998 | 3.28 | 552,858 | 697 | 0.25 | ||||||||||||
Time deposits | 343,065 | 7,025 | 4.13 | 165,485 | 1,073 | 1.31 | ||||||||||||
Borrowed funds | 80,573 | 1,506 | 3.77 | 34,062 | 379 | 2.24 | ||||||||||||
Total interest-bearing liabilities | 1,241,827 | 18,669 | 3.03 | 1,037,993 | 2,226 | 0.43 | ||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||
Noninterest-bearing liabilities | 21,726 | 23,397 | ||||||||||||||||
Noninterest-bearing deposits | 665,253 | 795,221 | ||||||||||||||||
Stockholders’ equity | 235,605 | 206,129 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,164,411 | $ | 2,062,740 | ||||||||||||||
Net interest spread | 5.39 | % | 6.72 | % | ||||||||||||||
Net interest income | $ | 69,827 | $ | 68,731 | ||||||||||||||
Net interest margin(3) | 6.64 | % | 6.93 | % |
_______________
(1) Annualized.
(2) Includes nonaccrual loans.
(3) For the six months ended
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),
Segments | |||||||||||||||||||||
For the three months ended |
|||||||||||||||||||||
(in thousands) | Commercial Bank |
CBHL | Corporate(2) | Eliminations | Consolidated | ||||||||||||||||
Interest income | $ | 28,742 | $ | 111 | $ | 15,168 | $ | 1,134 | $ | (75 | ) | $ | 45,080 | ||||||||
Interest expense | 9,537 | 42 | — | 236 | (75 | ) | 9,740 | ||||||||||||||
Net interest income | 19,205 | 69 | 15,168 | 898 | — | 35,340 | |||||||||||||||
Provision for credit losses | 735 | — | 2,127 | — | — | 2,862 | |||||||||||||||
Net interest income after provision | 18,470 | 69 | 13,041 | 898 | — | 32,478 | |||||||||||||||
Noninterest income | 810 | 1,161 | 4,714 | 2 | — | 6,687 | |||||||||||||||
Noninterest expense(1) | 15,918 | 1,481 | 12,059 | 134 | — | 29,592 | |||||||||||||||
Net income (loss) before taxes | $ | 3,362 | $ | (251 | ) | $ | 5,696 | $ | 766 | $ | — | $ | 9,573 | ||||||||
Total assets | $ | 2,047,400 | $ | 10,605 | $ | 116,123 | $ | 260,309 | $ | (206,571 | ) | $ | 2,227,866 | ||||||||
For the three months ended |
|||||||||||||||||||||
(in thousands) | Commercial Bank |
CBHL | Corporate(2) | Eliminations | Consolidated | ||||||||||||||||
Interest income | $ | 26,300 | $ | 77 | $ | 16,130 | $ | 978 | $ | (69 | ) | $ | 43,416 | ||||||||
Interest expense | 8,739 | 30 | — | 229 | (69 | ) | 8,929 | ||||||||||||||
Net interest income | 17,561 | 47 | 16,130 | 749 | — | 34,487 | |||||||||||||||
Provision (release of provision) for credit losses | (161 | ) | — | 1,821 | — | — | 1,660 | ||||||||||||||
Net interest income after provision | 17,722 | 47 | 14,309 | 749 | — | 32,827 | |||||||||||||||
Noninterest income | 489 | 1,327 | 4,210 | — | — | 6,026 | |||||||||||||||
Noninterest expense(1) | 14,980 | 1,581 | 9,450 | 192 | — | 26,203 | |||||||||||||||
Net income (loss) before taxes | $ | 3,231 | $ | (207 | ) | $ | 9,069 | $ | 557 | $ | — | $ | 12,650 | ||||||||
Total assets | $ | 2,074,634 | $ | 10,193 | $ | 106,761 | $ | 257,048 | $ | (203,350 | ) | $ | 2,245,286 | ||||||||
For the three months ended |
|||||||||||||||||||||
(in thousands) | Commercial Bank |
CBHL | Corporate(2) | Eliminations | Consolidated | ||||||||||||||||
Interest income | $ | 18,912 | $ | 134 | $ | 16,780 | $ | 758 | $ | (28 | ) | $ | 36,556 | ||||||||
Interest expense | 952 | 64 | — | 168 | (28 | ) | 1,156 | ||||||||||||||
Net interest income | 17,960 | 70 | 16,780 | 590 | — | 35,400 | |||||||||||||||
Provision for loan losses | — | — | 2,035 | — | — | 2,035 | |||||||||||||||
Net interest income after provision | 17,960 | 70 | 14,745 | 590 | — | 33,365 | |||||||||||||||
Noninterest income | 526 | 1,626 | 6,210 | — | — | 8,362 | |||||||||||||||
Noninterest expense(1) | 12,859 | 2,217 | 11,940 | 114 | — | 27,130 | |||||||||||||||
Net income (loss) before taxes | $ | 5,627 | $ | (521 | ) | $ | 9,015 | $ | 476 | $ | — | $ | 14,597 | ||||||||
Total assets | $ | 1,958,893 | $ | 12,257 | $ | 137,180 | $ | 226,950 | $ | (180,434 | ) | $ | 2,154,846 |
_______________
(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 six months ended |
|||||||||||||||||||||
(in thousands) | Commercial Bank |
CBHL | Corporate(2) | Eliminations | Consolidated | ||||||||||||||||
Interest income | $ | 55,042 | $ | 188 | $ | 31,298 | $ | 2,112 | $ | (144 | ) | $ | 88,496 | ||||||||
Interest expense | 18,276 | 72 | — | 465 | (144 | ) | 18,669 | ||||||||||||||
Net interest income | 36,766 | 116 | 31,298 | 1,647 | — | 69,827 | |||||||||||||||
Provision for credit losses | 574 | — | 3,948 | — | — | 4,522 | |||||||||||||||
Net interest income after provision | 36,192 | 116 | 27,350 | 1,647 | — | 65,305 | |||||||||||||||
Noninterest income | 1,299 | 2,488 | 8,924 | 2 | — | 12,713 | |||||||||||||||
Noninterest expense(1) | 30,898 | 3,062 | 21,509 | 326 | — | 55,795 | |||||||||||||||
Net income (loss) before taxes | $ | 6,593 | $ | (458 | ) | $ | 14,765 | $ | 1,323 | $ | — | $ | 22,223 | ||||||||
Total assets | $ | 2,047,400 | $ | 10,605 | $ | 116,123 | $ | 260,309 | $ | (206,571 | ) | $ | 2,227,866 | ||||||||
For the six months ended |
|||||||||||||||||||||
(in thousands) | Commercial Bank |
CBHL | Corporate(2) | Eliminations | Consolidated | ||||||||||||||||
Interest income | $ | 37,412 | $ | 245 | $ | 31,720 | $ | 1,645 | $ | (65 | ) | $ | 70,957 | ||||||||
Interest expense | 1,805 | 145 | — | 341 | (65 | ) | 2,226 | ||||||||||||||
Net interest income | 35,607 | 100 | 31,720 | 1,304 | — | 68,731 | |||||||||||||||
Provision for loan losses | — | — | 2,987 | — | — | 2,987 | |||||||||||||||
Net interest income after provision | 35,607 | 100 | 28,733 | 1,304 | — | 65,744 | |||||||||||||||
Noninterest income | 1,083 | 3,433 | 12,134 | — | — | 16,650 | |||||||||||||||
Noninterest expense(1) | 24,922 | 4,316 | 24,822 | 172 | — | 54,232 | |||||||||||||||
Net income (loss) before taxes | $ | 11,768 | $ | (783 | ) | $ | 16,045 | $ | 1,132 | $ | — | $ | 28,162 | ||||||||
Total assets | $ | 1,958,893 | $ | 12,257 | $ | 137,180 | $ | 226,950 | $ | (180,434 | ) | $ | 2,154,846 |
_______________
(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) | 2023 |
2023 |
2022 |
2022 |
2022 |
|||||||||||||||
Earnings: | ||||||||||||||||||||
Net income | $ | 7,318 | $ | 9,735 | $ | 8,991 | $ | 11,095 | $ | 11,508 | ||||||||||
Earnings per common share, diluted | 0.52 | 0.68 | 0.62 | 0.77 | 0.80 | |||||||||||||||
Net interest margin | 6.63 | % | 6.65 | % | 6.64 | % | 7.24 | % | 7.06 | % | ||||||||||
Net interest margin, excluding credit cards & SBA-PPP loans (1) | 4.06 | % | 3.81 | % | 3.91 | % | 4.16 | % | 3.86 | % | ||||||||||
Return on average assets(2) | 1.34 | % | 1.84 | % | 1.67 | % | 2.15 | % | 2.23 | % | ||||||||||
Return on average assets, excluding impact of SBA-PPP loans (1)(2) | 1.34 | % | 1.84 | % | 1.67 | % | 2.10 | % | 2.04 | % | ||||||||||
Return on average equity(2) | 12.30 | % | 16.98 | % | 16.18 | % | 20.32 | % | 22.16 | % | ||||||||||
Efficiency ratio | 70.41 | % | 64.68 | % | 65.59 | % | 64.16 | % | 62.00 | % | ||||||||||
Balance Sheet: | ||||||||||||||||||||
Total portfolio loans receivable, net deferred fees | $ | 1,837,041 | $ | 1,786,109 | $ | 1,728,592 | $ | 1,648,001 | $ | 1,607,677 | ||||||||||
Total deposits | 1,934,361 | 1,944,374 | 1,758,072 | 1,737,591 | 1,888,920 | |||||||||||||||
Total assets | 2,227,866 | 2,245,286 | 2,123,655 | 2,009,358 | 2,154,846 | |||||||||||||||
Total stockholders' equity | 237,435 | 234,517 | 224,015 | 214,005 | 207,316 | |||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||
Nonperforming assets to total assets | 0.71 | % | 0.73 | % | 0.46 | % | 0.43 | % | 0.34 | % | ||||||||||
Nonperforming assets to total assets, excluding the SBA-PPP loans (1) | 0.71 | % | 0.73 | % | 0.46 | % | 0.43 | % | 0.34 | % | ||||||||||
Nonperforming loans to total loans | 0.85 | % | 0.91 | % | 0.56 | % | 0.52 | % | 0.45 | % | ||||||||||
Nonperforming loans to portfolio loans (1) | 0.86 | % | 0.91 | % | 0.56 | % | 0.52 | % | 0.46 | % | ||||||||||
Net charge-offs to average portfolio loans (1)(2) | 0.35 | % | 0.61 | % | 0.49 | % | 0.39 | % | 0.23 | % | ||||||||||
Allowance for credit losses to total loans | 1.50 | % | 1.47 | % | 1.52 | % | 1.58 | % | 1.64 | % | ||||||||||
Allowance for credit losses to portfolio loans (1) | 1.50 | % | 1.47 | % | 1.53 | % | 1.58 | % | 1.64 | % | ||||||||||
Allowance for credit losses to non-performing loans | 175.03 | % | 160.91 | % | 270.46 | % | 303.76 | % | 360.06 | % | ||||||||||
Bank Capital Ratios: | ||||||||||||||||||||
Total risk based capital ratio | 14.08 | % | 14.09 | % | 14.21 | % | 14.65 | % | 14.34 | % | ||||||||||
Tier 1 risk based capital ratio | 12.82 | % | 12.84 | % | 12.95 | % | 13.39 | % | 13.09 | % | ||||||||||
Leverage ratio | 9.77 | % | 9.78 | % | 9.47 | % | 9.60 | % | 9.11 | % | ||||||||||
Common equity Tier 1 capital ratio | 12.82 | % | 12.84 | % | 12.95 | % | 13.39 | % | 13.09 | % | ||||||||||
Tangible common equity | 8.93 | % | 8.79 | % | 8.85 | % | 9.00 | % | 8.17 | % | ||||||||||
Holding Company Capital Ratios: | ||||||||||||||||||||
Total risk based capital ratio | 16.81 | % | 16.75 | % | 16.33 | % | 17.41 | % | 17.66 | % | ||||||||||
Tier 1 risk based capital ratio | 14.96 | % | 14.90 | % | 15.13 | % | 15.49 | % | 15.70 | % | ||||||||||
Leverage ratio | 11.50 | % | 11.47 | % | 11.24 | % | 11.31 | % | 10.93 | % | ||||||||||
Common equity Tier 1 capital ratio | 14.96 | % | 14.90 | % | 15.00 | % | 15.36 | % | 15.55 | % | ||||||||||
Tangible common equity | 10.66 | % | 10.44 | % | 10.55 | % | 10.65 | % | 9.62 | % | ||||||||||
Composition of Loans: | ||||||||||||||||||||
SBA-PPP loans, net | $ | 1,090 | $ | 2,037 | $ | 2,163 | $ | 2,662 | $ | 15,864 | ||||||||||
Commercial real estate | 674,141 | 660,218 | 664,551 | 626,030 | 608,646 | |||||||||||||||
Residential real estate | $ | 555,133 | $ | 545,899 | $ | 484,735 | $ | 466,849 | $ | 430,244 | ||||||||||
Construction real estate | 258,400 | 251,494 | 238,099 | 235,045 | 241,249 | |||||||||||||||
Commercial and industrial | 233,598 | 221,258 | 220,221 | 192,207 | 193,262 | |||||||||||||||
Credit card, net of reserve(3) | 122,925 | 112,860 | 128,434 | 136,658 | 142,166 | |||||||||||||||
Other consumer loans | 1,187 | 1,578 | 1,179 | 1,055 | 856 | |||||||||||||||
Portfolio loans receivable | $ | 1,845,384 | $ | 1,793,307 | $ | 1,737,219 | $ | 1,657,844 | $ | 1,616,423 | ||||||||||
Deferred origination fees, net | (8,343 | ) | (7,198 | ) | (8,627 | ) | (9,843 | ) | (8,746 | ) | ||||||||||
Portfolio loans receivable, net | $ | 1,837,041 | $ | 1,786,109 | $ | 1,728,592 | $ | 1,648,001 | $ | 1,607,677 | ||||||||||
Composition of Deposits: | ||||||||||||||||||||
Noninterest-bearing | $ | 693,129 | $ | 705,801 | $ | 674,313 | $ | 806,033 | $ | 842,363 | ||||||||||
Interest-bearing demand | 243,095 | 219,685 | 207,836 | 252,135 | 305,377 | |||||||||||||||
Savings | 5,816 | 5,835 | 7,530 | 8,861 | 10,078 | |||||||||||||||
Money markets | 631,148 | 632,087 | 574,978 | 518,184 | 570,298 | |||||||||||||||
Brokered time deposits | 128,665 | 181,820 | 131,819 | — | — | |||||||||||||||
Other time deposits | 232,508 | 199,146 | 161,596 | 152,378 | 160,804 | |||||||||||||||
Total deposits | $ | 1,934,361 | $ | 1,944,374 | $ | 1,758,072 | $ | 1,737,591 | $ | 1,888,920 | ||||||||||
Capital Bank Home Loan Metrics: | ||||||||||||||||||||
Origination of loans held for sale | $ | 61,480 | $ | 44,448 | $ | 43,956 | $ | 60,516 | $ | 84,417 | ||||||||||
Mortgage loans sold | 49,231 | 40,483 | 43,415 | 65,349 | 89,745 | |||||||||||||||
Gain on sale of loans | 1,262 | 1,223 | 912 | 1,340 | 1,918 | |||||||||||||||
Purchase volume as a % of originations | 93.12 | % | 90.72 | % | 88.94 | % | 81.85 | % | 85.23 | % | ||||||||||
Gain on sale as a % of loans sold(4) | 2.56 | % | 3.02 | % | 2.10 | % | 2.05 | % | 2.14 | % | ||||||||||
Mortgage commissions | $ | 621 | $ | 378 | $ | 451 | $ | 587 | $ | 772 | ||||||||||
Open customer accounts | 540,058 | 527,231 | 533,855 | 576,844 | 616,435 | |||||||||||||||
Secured credit card loans, gross | $ | 100,218 | $ | 89,078 | $ | 104,157 | $ | 111,842 | $ | 118,938 | ||||||||||
Unsecured credit card loans, gross | 25,254 | 25,782 | 26,795 | 27,335 | 25,641 | |||||||||||||||
Noninterest secured credit card deposits | 186,566 | 184,809 | 187,412 | 201,277 | 214,110 |
_______________
(1) Refer to Appendix for reconciliation of non-GAAP measures.
(2) Annualized.
(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
Return on Average Assets, as Adjusted | Quarters Ended | |||||||||||||||||||
(in thousands) | 2023 |
2023 |
2022 |
2022 |
2022 |
|||||||||||||||
Net Income | $ | 7,318 | $ | 9,735 | $ | 8,991 | $ | 11,095 | $ | 11,508 | ||||||||||
Less: SBA-PPP loan income | 7 | 8 | 28 | 263 | 1,120 | |||||||||||||||
Net Income, as Adjusted | $ | 7,311 | $ | 9,727 | $ | 8,963 | $ | 10,832 | $ | 10,388 | ||||||||||
Average Total Assets | 2,184,351 | 2,144,249 | 2,136,156 | 2,049,078 | 2,068,218 | |||||||||||||||
Less: Average SBA-PPP Loans | 1,808 | 2,099 | 2,435 | 5,906 | 28,870 | |||||||||||||||
Average Total Assets, as Adjusted | $ | 2,182,543 | $ | 2,142,150 | $ | 2,133,721 | $ | 2,043,172 | $ | 2,039,348 | ||||||||||
Return on Average Assets, as Adjusted | 1.34% | 1.84% | 1.67% | 2.10% | 2.04% |
Return on Average Assets, as Adjusted | Six Months Ended |
||||||||
(in thousands) | 2023 |
2022 |
|||||||
Net Income | $ | 17,053 | $ | 21,719 | |||||
Less: SBA-PPP loan income | 15 | 3,186 | |||||||
Net Income, as Adjusted | $ | 17,038 | $ | 18,533 | |||||
Average Total Assets | 2,164,411 | 2,062,740 | |||||||
Less: Average SBA-PPP Loans | 1,953 | 55,917 | |||||||
Average Total Assets, as Adjusted | $ | 2,162,458 | $ | 2,006,823 | |||||
Return on Average Assets, as Adjusted | 1.59% | 1.81% |
Net Interest Margin, as Adjusted | Quarters Ended | |||||||||||||||||||
(in thousands) | 2023 |
2023 |
2022 |
2022 |
2022 |
|||||||||||||||
Net Interest Income | $ | 35,340 | $ | 34,487 | $ | 35,199 | $ | 36,677 | $ | 35,400 | ||||||||||
Less Credit card loan income | 14,818 | 15,809 | 15,717 | 16,768 | 16,376 | |||||||||||||||
Less SBA-PPP loan income | 7 | 8 | 28 | 263 | 1,120 | |||||||||||||||
Net Interest Income, as Adjusted | $ | 20,515 | $ | 18,670 | $ | 19,454 | $ | 19,646 | $ | 17,904 | ||||||||||
Average Interest Earning Assets | 2,136,936 | 2,103,984 | 2,101,617 | 2,010,070 | 2,011,920 | |||||||||||||||
Less Average credit card loans | 110,574 | 115,850 | 124,120 | 132,246 | 124,548 | |||||||||||||||
Less Average SBA-PPP loans | 1,808 | 2,099 | 2,435 | 5,906 | 28,870 | |||||||||||||||
Total Average Interest Earning Assets, as Adjusted | $ | 2,024,554 | $ | 1,986,035 | $ | 1,975,062 | $ | 1,871,918 | $ | 1,858,502 | ||||||||||
Net Interest Margin, as Adjusted | 4.06% | 3.81% | 3.91% | 4.16% | 3.86% |
Net Interest Margin, as Adjusted | Six Months Ended |
||||||||
(in thousands) | 2023 |
2022 |
|||||||
Net Interest Income | $ | 69,827 | $ | 68,731 | |||||
Less Credit card loan income | 30,627 | 30,863 | |||||||
Less SBA-PPP loan income | 15 | 3,186 | |||||||
Net Interest Income, as Adjusted | $ | 39,185 | $ | 34,682 | |||||
Average Interest Earning Assets | 2,120,553 | 2,001,207 | |||||||
Less Average credit card loans | 113,197 | 124,735 | |||||||
Less Average SBA-PPP loans | 1,953 | 55,917 | |||||||
Total Average Interest Earning Assets, as Adjusted | $ | 2,005,403 | $ | 1,820,555 | |||||
Net Interest Margin, as Adjusted | 3.94% | 3.84% |
Pre-tax, Pre-Provision Net Revenue ("PPNR") | Quarters Ended | |||||||||||||||||||
(in thousands) | 2023 |
2023 |
2022 |
2022 |
2022 |
|||||||||||||||
Net income | $ | 7,318 | $ | 9,735 | $ | 8,991 | $ | 11,095 | $ | 11,508 | ||||||||||
Add: Income Tax Expense | 2,255 | 2,915 | 2,651 | 3,336 | 3,089 | |||||||||||||||
Add: Provision for Credit Losses | 2,862 | 1,660 | 2,384 | 1,260 | 2,035 | |||||||||||||||
Pre-tax, Pre-Provision Net Revenue ("PPNR") | $ | 12,435 | $ | 14,310 | $ | 14,026 | $ | 15,691 | $ | 16,632 |
Pre-tax, Pre-Provision Net Revenue ("PPNR") | Six Months Ended |
||||||||
(in thousands) | 2023 |
2022 |
|||||||
Net income | $ | 17,053 | $ | 21,719 | |||||
Add: Income Tax Expense | 5,170 | 6,443 | |||||||
Add: Provision for Credit Losses | 4,522 | 2,987 | |||||||
Pre-tax, Pre-Provision Net Revenue ("PPNR") | $ | 26,745 | $ | 31,149 |
Allowance for Credit Losses to Total Portfolio Loans | Quarters Ended | |||||||||||||||||||
(in thousands) | 2023 |
2023 |
2022 |
2022 |
2022 |
|||||||||||||||
Allowance for Credit Losses | $ | 27,495 | $ | 26,216 | $ | 26,385 | $ | 26,091 | $ | 26,419 | ||||||||||
Total Loans | 1,838,131 | 1,788,146 | 1,730,755 | 1,650,663 | 1,623,541 | |||||||||||||||
Less: SBA-PPP loans | 1,090 | 2,037 | 2,163 | 2,662 | 15,864 | |||||||||||||||
Total Portfolio Loans | $ | 1,837,041 | $ | 1,786,109 | $ | 1,728,592 | $ | 1,648,001 | $ | 1,607,677 | ||||||||||
Allowance for Credit Losses to Total Portfolio Loans | 1.50% | 1.47% | 1.53% | 1.58% | 1.64% | |||||||||||||||
Nonperforming Assets to Total Assets, net SBA-PPP Loans | Quarters Ended | |||||||||||||||||||
(in thousands) | 2023 |
2023 |
2022 |
2022 |
2022 |
|||||||||||||||
Total Nonperforming Assets | $ | 15,709 | $ | 16,293 | $ | 9,756 | $ | 8,589 | $ | 7,338 | ||||||||||
Total Assets | 2,227,866 | 2,245,286 | 2,123,655 | 2,009,358 | 2,154,846 | |||||||||||||||
Less: SBA-PPP loans | 1,090 | 2,037 | 2,163 | 2,662 | 15,864 | |||||||||||||||
Total Assets, net SBA-PPP Loans | $ | 2,226,776 | $ | 2,243,249 | $ | 2,121,492 | $ | 2,006,696 | $ | 2,138,982 | ||||||||||
Nonperforming Assets to Total Assets, net SBA-PPP Loans | 0.71% | 0.73% | 0.46% | 0.43% | 0.34% | |||||||||||||||
Nonperforming Loans to Total Portfolio Loans | Quarters Ended | |||||||||||||||||||
(in thousands) | 2023 |
2023 |
2022 |
2022 |
2022 |
|||||||||||||||
Total Nonperforming Loans | $ | 15,709 | $ | 16,293 | $ | 9,756 | $ | 8,589 | $ | 7,338 | ||||||||||
Total Loans | 1,838,131 | 1,788,146 | 1,730,755 | 1,650,663 | 1,623,541 | |||||||||||||||
Less: SBA-PPP loans | 1,090 | 2,037 | 2,163 | 2,662 | 15,864 | |||||||||||||||
Total Portfolio Loans | $ | 1,837,041 | $ | 1,786,109 | $ | 1,728,592 | $ | 1,648,001 | $ | 1,607,677 | ||||||||||
Nonperforming Loans to Total Portfolio Loans | 0.86% | 0.91% | 0.56% | 0.52% | 0.46% | |||||||||||||||
Net Charge-offs to Average Portfolio Loans | Quarters Ended | |||||||||||||||||||
(in thousands) | 2023 |
2023 |
2022 |
2022 |
2022 |
|||||||||||||||
Total Net Charge-offs | $ | 1,583 | $ | 2,633 | $ | 2,090 | $ | 1,588 | $ | 868 | ||||||||||
Total Average Loans | 1,802,608 | 1,752,638 | 1,677,869 | 1,607,452 | 1,561,541 | |||||||||||||||
Less: Average SBA-PPP loans | 1,808 | 2,099 | 2,435 | 5,906 | 28,870 | |||||||||||||||
Total Average Portfolio Loans | $ | 1,800,800 | $ | 1,750,539 | $ | 1,675,434 | $ | 1,601,546 | $ | 1,532,671 | ||||||||||
Net Charge-offs to Average Portfolio Loans | 0.35% | 0.61% | 0.49% | 0.39% | 0.23% | |||||||||||||||
Tangible Book Value per Share | Quarters Ended | |||||||||||||||||||
(in thousands, except per share amounts) | 2023 |
2023 |
2022 |
2022 |
2022 |
|||||||||||||||
Total Stockholders' Equity | $ | 237,435 | $ | 234,517 | $ | 224,015 | $ | 214,005 | $ | 207,316 | ||||||||||
Less: Preferred equity | — | — | — | — | — | |||||||||||||||
Less: Intangible assets | — | — | — | — | — | |||||||||||||||
Tangible Common Equity | $ | 237,435 | $ | 234,517 | $ | 224,015 | $ | 214,005 | $ | 207,316 | ||||||||||
Period End Shares Outstanding | 13,981,414 | 14,082,657 | 14,138,829 | 14,038,599 | 14,010,158 | |||||||||||||||
Tangible Book Value per Share | $ | 16.98 | $ | 16.65 | $ | 15.84 | $ | 15.24 | $ | 14.80 |
ABOUT
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
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 war in
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.
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MEDIA CONTACT:
WEB SITE: www.CapitalBankMD.com
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Source: Capital Bancorp, Inc.