Press Release
Capital Bancorp, Inc. Reports Third Quarter 2023 Net Income of $9.8 million, or $0.70 per share
- Net Income Expands 33.8% with Improved Net Interest Margin from 2Q 2023
- Diluted EPS of
$0.70 , ROAA of 1.75%, and ROAE of 16.00% for 3Q 2023 - Loan and Deposit Growth Generates Positive Operating Leverage
- Tangible Book Value Per Share(1) of
$17.48 for 3Q 2023 up 15% from 3Q 2022 - Cash dividend of
$0.08 per share declared
The Company also declared a cash dividend on its common stock of
"Our business model is proving to be stable and resilient against a challenging backdrop," said
“The Board is pleased with our improved quarter over quarter performance,” said
(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.
Third Quarter 2023 Highlights
Earnings Summary - Net income of
- Net interest income of
$36 .8 million increased$1 .5 million compared to$35 .3 million for the second quarter 2023. Interest income of$47 .7 million increased$2 .7 million compared to$45 .1 million for the second quarter 2023. Interest expense of$10.9 million increased$1.2 million compared to$9.7 million for the second quarter 2023. - The provision for credit losses was
$2 .3 million, a decrease of$0 .6 million from the second quarter 2023. The change in provision was partially due to lower loan growth of$24.9 million fromJune 30, 2023 toSeptember 30, 2023 as compared to loan growth of$50.9 million fromMarch 31, 2023 toJune 30, 2023 . - Noninterest income of
$6 .3 million decreased$0 .4 million compared to$6 .7 million for the second quarter 2023. Credit card fees decreased$0.3 million partially due to interchange fees from lower customer purchases as the number of open customer accounts decreased quarter over quarter. - Noninterest expense of
$28 .0 million decreased$1 .5 million compared to$29 .6 million for the second quarter 2023 including total advertising expense of$1.6 million decreasing$1.1 million off of seasonally higher second quarter levels.
Performance and Efficiency Ratios – Annualized return on average assets ("ROAA") and annualized return on average equity ("ROAE") were 1.75% and 16.00%, respectively, for the three months ended
- The efficiency ratio was 65.0% for the three months ended
September 30, 2023 , compared to 70.4% for the three months endedJune 30, 2023 . The change was primarily attributable to a$1.5 million increase in net interest income and a$1.5 million reduction in noninterest expense quarter over quarter.
Balance Sheet – Total assets of
- Cash and cash equivalents increased
$26.8 million . - Net portfolio loans of
$1.9 billion increased$24.9 million , representing 5.4% annualized growth. - Total deposits of
$2.0 billion atSeptember 30, 2023 increased$33.6 million , or 1.7%, fromJune 30, 2023 , while total average deposits increased$37 .1 million, or 7.8% annualized, quarter over quarter. - The investment securities portfolio continues to be classified as available for sale and had a fair market value of
$206.1 million , or 9.1% of total assets, atSeptember 30, 2023 down slightly from$208.5 million atJune 30, 2023 . The amortized cost of the investment securities portfolio was$229.4 million , with an effective duration of 3.21 years.U.S. Treasury securities represent 74.8% of the overall investment portfolio. The accumulated other comprehensive loss ("AOCI Loss") on the investment securities portfolio increased$1.8 million during the quarter to$17.8 million as ofSeptember 30, 2023 , which represents 7.3% of total stockholders' equity. The Company does not have a held to maturity ("HTM") investment securities portfolio.
Net Interest Margin - Net interest margin improved to 6.71% for the three months ended
- The average yield on interest earning assets increased 24 basis points compared to the second quarter 2023. The increase in average yield is due to portfolio loans increasing 17 basis points to 9.72%, and interest-bearing deposits held at other institutions increased 96 basis points to 5.39%. Average portfolio loans increased
$46.1 million and average interest-bearing deposits held at other institutions increased$20.7 million , compared to the second quarter 2023. - The average rate on interest-bearing liabilities increased 24 basis points compared to the second quarter 2023. Increases in average rates include money market accounts increasing 38 basis points to 3.85% and time deposits increasing 21 basis points to 4.51%, while average balances increased
$30.5 million and$8.0 million , respectively, compared to the second quarter 2023. The average rate on borrowed funds decreased 48 basis points to 2.59%, as a result of a reduction in average short-term FHLB advances of$8.3 million to$0.9 million in the third quarter 2023 from$9.1 million in the second quarter 2023.
Deposits and Cost of Funds - Total deposits at
- Interest-bearing deposits of
$1.3 billion increased$46.0 million , or 3.7%, compared toJune 30, 2023 with growth in money market accounts of$37.6 million , other time deposits of$22.5 million and a reduction in interest-bearing demand accounts of$14.1 million . Noninterest-bearing deposits of$680.8 million decreased$12.3 million , or 1.8%, compared toJune 30, 2023 . Brokered time deposits totaled$128.7 million atSeptember 30, 2023 , unchanged fromJune 30, 2023 . - The elevated interest rate environment has driven up the average cost of interest-bearing liabilities to 3.37% for the quarter ended
September 30, 2023 , compared to 3.13% for the second quarter 2023. - Average noninterest-bearing deposits of
$666.9 million decreased$9.4 million , or 1.4%, compared toJune 30, 2023 , and represented 34.8% of total average deposits atSeptember 30, 2023 . - Average borrowed funds of
$34.9 million decreased$8.3 million , or 19.1%, compared toJune 30, 2023 .
Robust Capital Positions - As of
Liquidity - Total sources of available borrowings at
Continued Portfolio Loan Growth - Portfolio loans, excluding credit cards, increased by
Net Interest Income - Interest income of
Credit Metrics - Nonperforming assets ("NPAs") decreased 4 basis points to 0.67% of total assets at
Revenues - Total revenue of
Noninterest Expense - Total noninterest expense of
Loan Balances -
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited |
|||||||||||||||||||||||||
Quarter Ended | 3Q23 vs 2Q23 | 3Q23 vs 3Q22 | |||||||||||||||||||||||
(in thousands except per share data) | $ Change | % Change | $ Change | % Change | |||||||||||||||||||||
Earnings Summary | |||||||||||||||||||||||||
Interest income | $ | 47,741 | $ | 45,080 | $ | 38,340 | $ | 2,661 | 5.9 | % | $ | 9,401 | 24.5 | % | |||||||||||
Interest expense | 10,931 | 9,740 | 1,663 | 1,191 | 12.2 | % | 9,268 | 557.3 | % | ||||||||||||||||
Net interest income | 36,810 | 35,340 | 36,677 | 1,470 | 4.2 | % | 133 | 0.4 | % | ||||||||||||||||
Provision for credit losses | 2,280 | 2,862 | 1,260 | (582 | ) | (20.3 | )% | 1,020 | 81.0 | % | |||||||||||||||
Provision for credit losses on unfunded commitments | 24 | — | — | 24 | — | % | 24 | — | % | ||||||||||||||||
Noninterest income | 6,326 | 6,687 | 7,108 | (361 | ) | (5.4 | )% | (782 | ) | (11.0 | )% | ||||||||||||||
Noninterest expense | 28,046 | 29,592 | 28,094 | (1,546 | ) | (5.2 | )% | (48 | ) | (0.2 | )% | ||||||||||||||
Income before income taxes | 12,786 | 9,573 | 14,431 | 3,213 | 33.6 | % | (1,645 | ) | (11.4 | )% | |||||||||||||||
Income tax expense | 2,998 | 2,255 | 3,336 | 743 | 32.9 | % | (338 | ) | (10.1 | )% | |||||||||||||||
Net income | $ | 9,788 | $ | 7,318 | $ | 11,095 | $ | 2,470 | 33.8 | % | $ | (1,307 | ) | (11.8 | )% | ||||||||||
Pre-tax pre-provision net revenue ("PPNR")(1) | $ | 15,090 | $ | 12,435 | $ | 15,691 | $ | 2,655 | 21.4 | % | $ | (601 | ) | (3.8 | )% | ||||||||||
Weighted average common shares - Basic | 13,933 | 14,025 | 14,030 | (92 | ) | (0.7 | )% | (97 | ) | (0.7 | )% | ||||||||||||||
Weighted average common shares - Diluted | 14,024 | 14,059 | 14,375 | (35 | ) | (0.2 | )% | (351 | ) | (2.4 | )% | ||||||||||||||
Earnings per share - Basic | $ | 0.70 | $ | 0.52 | $ | 0.79 | $ | 0.18 | 34.6 | % | $ | (0.09 | ) | (11.4 | )% | ||||||||||
Earnings per share - Diluted | $ | 0.70 | $ | 0.52 | $ | 0.77 | $ | 0.18 | 34.6 | % | $ | (0.07 | ) | (9.1 | )% | ||||||||||
Return on average assets (annualized) | 1.75 | % | 1.34 | % | 2.15 | % | 0.41 | % | 30.6 | % | (0.40 | )% | (18.6 | )% | |||||||||||
Return on average assets, excluding impact of SBA-PPP loans (annualized)(1) | 1.75 | % | 1.34 | % | 2.10 | % | 0.41 | % | 30.6 | % | (0.35 | )% | (16.7 | )% | |||||||||||
Return on average equity (annualized) | 16.00 | % | 12.30 | % | 20.32 | % | 3.70 | % | 30.1 | % | (4.32 | )% | (21.3 | )% |
______________
(1) Refer to Appendix for reconciliation of non-GAAP measures
COMPARATIVE FINANCIAL HIGHLIGHTS - Unaudited (Continued) |
|||||||||||||||
Nine Months Ended | |||||||||||||||
(in thousands except per share data) | 2023 | 2022 | $ Change | % Change | |||||||||||
Earnings Summary | |||||||||||||||
Interest income | $ | 136,237 | $ | 109,298 | $ | 26,939 | 24.6 | % | |||||||
Interest expense | 29,600 | 3,890 | 25,710 | 660.9 | % | ||||||||||
Net interest income | 106,637 | 105,408 | 1,229 | 1.2 | % | ||||||||||
Provision for credit losses | 6,802 | 4,247 | 2,555 | 60.2 | % | ||||||||||
Provision for credit losses on unfunded commitments | 5 | — | 5 | — | % | ||||||||||
Noninterest income | 19,039 | 23,811 | (4,772 | ) | (20.0 | )% | |||||||||
Noninterest expense | 83,860 | 82,379 | 1,481 | 1.8 | % | ||||||||||
Income before income taxes | 35,009 | 42,593 | (7,584 | ) | (17.8 | )% | |||||||||
Income tax expense | 8,168 | 9,779 | (1,611 | ) | (16.5 | )% | |||||||||
Net income | $ | 26,841 | $ | 32,814 | $ | (5,973 | ) | (18.2 | )% | ||||||
Pre-tax pre-provision net revenue ("PPNR")(1) | $ | 41,816 | $ | 46,840 | $ | (5,024 | ) | (10.7 | )% | ||||||
Weighted average common shares - Basic | 14,038 | 14,009 | 29 | 0.2 | % | ||||||||||
Weighted average common shares - Diluted | 14,112 | 14,329 | (217 | ) | (1.5 | )% | |||||||||
Earnings per share - Basic | $ | 1.91 | $ | 2.34 | $ | (0.43 | ) | (18.4 | )% | ||||||
Earnings per share - Diluted | $ | 1.90 | $ | 2.29 | $ | (0.39 | ) | (17.0 | )% | ||||||
Return on average assets (annualized) | 1.64 | % | 2.13 | % | (0.49 | )% | (23.0 | )% | |||||||
Return on average assets, excluding impact of SBA-PPP loans (annualized)(1) | 1.64 | % | 1.94 | % | (0.30 | )% | (15.5 | )% | |||||||
Return on average equity (annualized) | 15.08 | % | 20.93 | % | (5.85 | )% | (28.0 | )% | |||||||
Quarter Ended | Quarter Ended | |||||||||||||||||||||
(in thousands except per share data) | 2023 |
2022 |
% Change | 2023 |
2023 |
2022 |
||||||||||||||||
Balance Sheet Highlights | ||||||||||||||||||||||
Assets | $ | 2,272,484 | $ | 2,009,358 | 13.1 | % | $ | 2,227,866 | $ | 2,245,286 | $ | 2,123,655 | ||||||||||
Investment securities available for sale | 206,055 | 269,620 | (23.6 | )% | 208,464 | 255,762 | 252,481 | |||||||||||||||
Mortgage loans held for sale | 4,843 | 6,875 | (29.6 | )% | 10,146 | 9,620 | 7,416 | |||||||||||||||
SBA-PPP loans, net of fees | 750 | 2,662 | (71.8 | )% | 1,090 | 2,037 | 2,163 | |||||||||||||||
Portfolio loans receivable(2) | 1,861,929 | 1,648,001 | 13.0 | % | 1,837,041 | 1,786,109 | 1,728,592 | |||||||||||||||
Allowance for credit losses | 28,279 | 26,091 | 8.4 | % | 27,495 | 26,216 | 26,385 | |||||||||||||||
Deposits | 1,967,988 | 1,737,591 | 13.3 | % | 1,934,361 | 1,944,374 | 1,758,072 | |||||||||||||||
FHLB borrowings | 22,000 | 22,000 | — | % | 22,000 | 32,000 | 107,000 | |||||||||||||||
Other borrowed funds | 12,062 | 12,062 | — | % | 12,062 | 12,062 | 12,062 | |||||||||||||||
Total stockholders' equity | 242,878 | 214,005 | 13.5 | % | 237,435 | 234,517 | 224,015 | |||||||||||||||
Tangible common equity(1) | 242,878 | 214,005 | 13.5 | % | 237,435 | 234,517 | 224,015 | |||||||||||||||
Common shares outstanding | 13,896 | 14,039 | (1.0 | )% | 13,981 | 14,083 | 14,139 | |||||||||||||||
Book value per share | $ | 17.48 | $ | 15.24 | 14.7 | % | $ | 16.98 | $ | 16.65 | $ | 15.84 | ||||||||||
Tangible book value per share(1) | $ | 17.48 | $ | 15.24 | 14.7 | % | $ | 16.98 | $ | 16.65 | $ | 15.84 | ||||||||||
Dividends per share | $ | 0.08 | $ | 0.06 | 33.3 | % | $ | 0.06 | $ | 0.06 | $ | 0.06 |
______________
(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 Nine Months Ended
For the nine months ended
For the nine months ended
For the nine months ended
For the nine months ended
The efficiency ratio for the nine months ended
For the nine 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 |
Nine Months Ended | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Interest income | |||||||||||||||||||||||||||
Loans, including fees | $ | 45,385 | $ | 42,991 | $ | 41,275 | $ | 38,763 | $ | 36,451 | $ | 129,651 | $ | 105,645 | |||||||||||||
Investment securities available for sale | 1,089 | 1,266 | 1,377 | 1,402 | 1,362 | 3,732 | 2,510 | ||||||||||||||||||||
Federal funds sold and other | 1,267 | 823 | 764 | 1,183 | 527 | 2,854 | 1,143 | ||||||||||||||||||||
Total interest income | 47,741 | 45,080 | 43,416 | 41,348 | 38,340 | 136,237 | 109,298 | ||||||||||||||||||||
Interest expense | |||||||||||||||||||||||||||
Deposits | 10,703 | 9,409 | 7,754 | 4,377 | 1,386 | 27,866 | 3,234 | ||||||||||||||||||||
Borrowed funds | 228 | 331 | 1,175 | 1,772 | 277 | 1,734 | 656 | ||||||||||||||||||||
Total interest expense | 10,931 | 9,740 | 8,929 | 6,149 | 1,663 | 29,600 | 3,890 | ||||||||||||||||||||
Net interest income | 36,810 | 35,340 | 34,487 | 35,199 | 36,677 | 106,637 | 105,408 | ||||||||||||||||||||
Provision for credit losses | 2,280 | 2,862 | 1,660 | 2,384 | 1,260 | 6,802 | 4,247 | ||||||||||||||||||||
Provision for (release of) credit losses on unfunded commitments | 24 | — | (19 | ) | — | — | 5 | — | |||||||||||||||||||
Net interest income after provision for credit losses | 34,506 | 32,478 | 32,846 | 32,815 | 35,417 | 99,830 | 101,161 | ||||||||||||||||||||
Noninterest income | |||||||||||||||||||||||||||
Service charges on deposits | 250 | 245 | 229 | 222 | 199 | 724 | 545 | ||||||||||||||||||||
Credit card fees | 4,387 | 4,706 | 4,210 | 4,314 | 5,524 | 13,303 | 17,658 | ||||||||||||||||||||
Mortgage banking revenue | 1,243 | 1,332 | 1,155 | 554 | 969 | 3,730 | 4,312 | ||||||||||||||||||||
Other income | 446 | 404 | 432 | 471 | 416 | 1,282 | 1,296 | ||||||||||||||||||||
Total noninterest income | 6,326 | 6,687 | 6,026 | 5,561 | 7,108 | 19,039 | 23,811 | ||||||||||||||||||||
Noninterest expenses | |||||||||||||||||||||||||||
Salaries and employee benefits | 12,419 | 12,143 | 12,554 | 11,769 | 10,747 | 37,116 | 31,129 | ||||||||||||||||||||
Occupancy and equipment | 1,351 | 1,536 | 1,213 | 1,388 | 1,138 | 4,100 | 3,476 | ||||||||||||||||||||
Professional fees | 2,358 | 2,608 | 2,374 | 2,426 | 3,848 | 7,340 | 8,586 | ||||||||||||||||||||
Data processing | 6,469 | 6,559 | 6,530 | 6,697 | 7,178 | 19,558 | 22,721 | ||||||||||||||||||||
Advertising | 1,565 | 2,646 | 517 | 726 | 1,632 | 4,728 | 5,494 | ||||||||||||||||||||
Loan processing | 426 | 660 | 349 | 350 | 625 | 1,435 | 1,352 | ||||||||||||||||||||
Foreclosed real estate expenses, net | 1 | — | 6 | — | — | 7 | — | ||||||||||||||||||||
Other operating | 3,457 | 3,440 | 2,679 | 3,378 | 2,926 | 9,576 | 9,621 | ||||||||||||||||||||
Total noninterest expenses | 28,046 | 29,592 | 26,222 | 26,734 | 28,094 | 83,860 | 82,379 | ||||||||||||||||||||
Income before income taxes | 12,786 | 9,573 | 12,650 | 11,642 | 14,431 | 35,009 | 42,593 | ||||||||||||||||||||
Income tax expense | 2,998 | 2,255 | 2,915 | 2,651 | 3,336 | 8,168 | 9,779 | ||||||||||||||||||||
Net income | $ | 9,788 | $ | 7,318 | $ | 9,735 | $ | 8,991 | $ | 11,095 | $ | 26,841 | $ | 32,814 | |||||||||||||
Consolidated Balance Sheets | |||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (audited) | (unaudited) | |||||||||||||||
(in thousands except share data) | |||||||||||||||||||
Assets | |||||||||||||||||||
Cash and due from banks | $ | 13,767 | $ | 18,619 | $ | 14,477 | $ | 19,963 | $ | 14,774 | |||||||||
Interest-bearing deposits at other financial institutions | 130,428 | 100,343 | 125,448 | 39,764 | 20,867 | ||||||||||||||
Federal funds sold | 1,957 | 376 | 462 | 20,688 | 1,421 | ||||||||||||||
Total cash and cash equivalents | 146,152 | 119,338 | 140,387 | 80,415 | 37,062 | ||||||||||||||
Investment securities available for sale | 206,055 | 208,464 | 255,762 | 252,481 | 269,620 | ||||||||||||||
Marketable equity securities | — | — | — | — | 232 | ||||||||||||||
Restricted investments | 4,340 | 3,803 | 4,215 | 7,362 | 3,627 | ||||||||||||||
Loans held for sale | 4,843 | 10,146 | 9,620 | 7,416 | 6,875 | ||||||||||||||
750 | 1,090 | 2,037 | 2,163 | 2,662 | |||||||||||||||
Portfolio loans receivable, net of deferred fees and costs | 1,861,929 | 1,837,041 | 1,786,109 | 1,728,592 | 1,648,001 | ||||||||||||||
Less allowance for credit losses | (28,279 | ) | (27,495 | ) | (26,216 | ) | (26,385 | ) | (26,091 | ) | |||||||||
Total portfolio loans held for investment, net | 1,833,650 | 1,809,546 | 1,759,893 | 1,702,207 | 1,621,910 | ||||||||||||||
Premises and equipment, net | 5,297 | 5,494 | 5,367 | 3,386 | 3,212 | ||||||||||||||
Accrued interest receivable | 11,231 | 10,155 | 9,985 | 9,489 | 7,890 | ||||||||||||||
Deferred tax asset | 13,644 | 13,616 | 12,898 | 13,777 | 14,047 | ||||||||||||||
Bank owned life insurance | 37,315 | 37,041 | 36,781 | 36,524 | 36,267 | ||||||||||||||
Other assets | 9,207 | 9,173 | 8,341 | 8,435 | 5,954 | ||||||||||||||
Total assets | $ | 2,272,484 | $ | 2,227,866 | $ | 2,245,286 | $ | 2,123,655 | $ | 2,009,358 | |||||||||
Liabilities | |||||||||||||||||||
Deposits | |||||||||||||||||||
Noninterest-bearing | $ | 680,803 | $ | 693,129 | $ | 705,801 | $ | 674,313 | $ | 806,033 | |||||||||
Interest-bearing | 1,287,185 | 1,241,232 | 1,238,573 | 1,083,759 | 931,558 | ||||||||||||||
Total deposits | 1,967,988 | 1,934,361 | 1,944,374 | 1,758,072 | 1,737,591 | ||||||||||||||
22,000 | 22,000 | 32,000 | 107,000 | 22,000 | |||||||||||||||
Other borrowed funds | 12,062 | 12,062 | 12,062 | 12,062 | 12,062 | ||||||||||||||
Accrued interest payable | 5,204 | 3,029 | 1,977 | 1,031 | 481 | ||||||||||||||
Other liabilities | 22,352 | 18,979 | 20,356 | 21,475 | 23,219 | ||||||||||||||
Total liabilities | 2,029,606 | 1,990,431 | 2,010,769 | 1,899,640 | 1,795,353 | ||||||||||||||
Stockholders' equity | |||||||||||||||||||
Common stock | 139 | 140 | 141 | 141 | 140 | ||||||||||||||
Additional paid-in capital | 54,549 | 55,856 | 57,277 | 58,190 | 56,532 | ||||||||||||||
Retained earnings | 206,033 | 197,490 | 191,058 | 182,435 | 174,916 | ||||||||||||||
Accumulated other comprehensive loss | (17,843 | ) | (16,051 | ) | (13,959 | ) | (16,751 | ) | (17,583 | ) | |||||||||
Total stockholders' equity | 242,878 | 237,435 | 234,517 | 224,015 | 214,005 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 2,272,484 | $ | 2,227,866 | $ | 2,245,286 | $ | 2,123,655 | $ | 2,009,358 | |||||||||
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) |
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(in thousands) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 87,112 | $ | 1,183 | 5.39 | % | $ | 66,401 | $ | 733 | 4.43 | % | $ | 101,187 | $ | 471 | 1.85 | % | ||||||||||||||
Federal funds sold | 1,134 | 15 | 5.25 | 1,638 | 20 | 4.90 | 1,492 | 7 | 1.87 | |||||||||||||||||||||||
Investment securities available for sale | 229,731 | 1,089 | 1.88 | 255,057 | 1,266 | 1.99 | 287,944 | 1,362 | 1.88 | |||||||||||||||||||||||
Restricted investments | 4,058 | 69 | 6.75 | 4,185 | 71 | 6.80 | 4,116 | 49 | 4.72 | |||||||||||||||||||||||
Loans held for sale | 6,670 | 111 | 6.60 | 7,047 | 111 | 6.32 | 7,879 | 102 | 5.15 | |||||||||||||||||||||||
SBA-PPP loans receivable | 906 | 11 | 4.82 | 1,808 | 7 | 1.55 | 5,906 | 263 | 17.66 | |||||||||||||||||||||||
Portfolio loans receivable(2) | 1,846,866 | 45,263 | 9.72 | 1,800,800 | 42,872 | 9.55 | 1,601,546 | 36,086 | 8.94 | |||||||||||||||||||||||
Total interest earning assets | 2,176,477 | 47,741 | 8.70 | 2,136,936 | 45,080 | 8.46 | 2,010,070 | 38,340 | 7.57 | |||||||||||||||||||||||
Noninterest earning assets | 44,640 | 47,415 | 39,008 | |||||||||||||||||||||||||||||
Total assets | $ | 2,221,117 | $ | 2,184,351 | $ | 2,049,078 | ||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Interest-bearing demand accounts | $ | 215,527 | 71 | 0.13 | $ | 207,264 | 67 | 0.13 | $ | 244,929 | 39 | 0.06 | ||||||||||||||||||||
Savings | 5,582 | 3 | 0.21 | 5,822 | 2 | 0.14 | 9,216 | 1 | 0.04 | |||||||||||||||||||||||
Money market accounts | 655,990 | 6,373 | 3.85 | 625,515 | 5,411 | 3.47 | 555,634 | 815 | 0.58 | |||||||||||||||||||||||
Time deposits | 374,429 | 4,256 | 4.51 | 366,421 | 3,929 | 4.30 | 155,091 | 531 | 1.36 | |||||||||||||||||||||||
Borrowed funds | 34,932 | 228 | 2.59 | 43,183 | 331 | 3.07 | 40,700 | 277 | 2.70 | |||||||||||||||||||||||
Total interest-bearing liabilities | 1,286,460 | 10,931 | 3.37 | 1,248,205 | 9,740 | 3.13 | 1,005,570 | 1,663 | 0.66 | |||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Noninterest-bearing liabilities | 25,047 | 21,104 | 24,440 | |||||||||||||||||||||||||||||
Noninterest-bearing deposits | 666,939 | 676,358 | 802,458 | |||||||||||||||||||||||||||||
Stockholders’ equity | 242,671 | 238,684 | 216,610 | |||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,221,117 | $ | 2,184,351 | $ | 2,049,078 | ||||||||||||||||||||||||||
Net interest spread | 5.33 | % | 5.33 | % | 6.91 | % | ||||||||||||||||||||||||||
Net interest income | $ | 36,810 | $ | 35,340 | $ | 36,677 | ||||||||||||||||||||||||||
Net interest margin(3) | 6.71 | % | 6.63 | % | 7.24 | % |
_______________
(1) Annualized.
(2) Includes nonaccrual loans.
(3) For the three months ended
Nine 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 | $ | 72,116 | $ | 2,531 | 4.69 | % | $ | 172,033 | $ | 1,001 | 0.78 | % | |||||||||
Federal funds sold | 1,605 | 53 | 4.42 | 2,590 | 9 | 0.48 | |||||||||||||||
Investment securities available for sale | 252,993 | 3,732 | 1.97 | 234,294 | 2,510 | 1.43 | |||||||||||||||
Restricted investments | 5,184 | 270 | 6.96 | 3,913 | 133 | 4.54 | |||||||||||||||
Loans held for sale | 6,145 | 299 | 6.51 | 10,921 | 347 | 4.25 | |||||||||||||||
SBA-PPP loans receivable | 1,600 | 26 | 2.17 | 39,063 | 3,449 | 11.80 | |||||||||||||||
Portfolio loans receivable(2) | 1,799,755 | 129,326 | 9.61 | 1,547,386 | 101,849 | 8.80 | |||||||||||||||
Total interest earning assets | 2,139,398 | 136,237 | 8.51 | 2,010,200 | 109,298 | 7.27 | |||||||||||||||
Noninterest earning assets | 44,123 | 47,936 | |||||||||||||||||||
Total assets | $ | 2,183,521 | $ | 2,058,136 | |||||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest-bearing demand accounts | $ | 203,099 | 208 | 0.14 | $ | 265,854 | 114 | 0.06 | |||||||||||||
Savings | 5,965 | 6 | 0.13 | 9,138 | 4 | 0.06 | |||||||||||||||
Money market accounts | 628,977 | 16,371 | 3.48 | 553,794 | 1,512 | 0.37 | |||||||||||||||
Time deposits | 353,635 | 11,281 | 4.27 | 161,982 | 1,604 | 1.32 | |||||||||||||||
Borrowed funds | 65,192 | 1,734 | 3.56 | 36,299 | 656 | 2.41 | |||||||||||||||
Total interest-bearing liabilities | 1,256,868 | 29,600 | 3.15 | 1,027,067 | 3,890 | 0.51 | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||
Noninterest-bearing liabilities | 22,846 | 23,748 | |||||||||||||||||||
Noninterest-bearing deposits | 665,821 | 797,660 | |||||||||||||||||||
Stockholders’ equity | 237,986 | 209,661 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,183,521 | $ | 2,058,136 | |||||||||||||||||
Net interest spread | 5.36 | % | 6.76 | % | |||||||||||||||||
Net interest income | $ | 106,637 | $ | 105,408 | |||||||||||||||||
Net interest margin(3) | 6.66 | % | 7.01 | % |
(1) Annualized.
(2) Includes nonaccrual loans.
(3) For the nine 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) | CBHL | 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 | ||||||||||||||||||
Release of 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) | 15,784 | 1,502 | 10,637 | 123 | — | 28,046 | ||||||||||||||||||
Net income (loss) before taxes | $ | 4,255 | $ | (168 | ) | $ | 8,036 | $ | 663 | $ | — | $ | 12,786 | |||||||||||
Total assets | $ | 2,102,749 | $ | 5,280 | $ | 116,318 | $ | 264,950 | $ | (216,813 | ) | $ | 2,272,484 | |||||||||||
For the three months ended |
||||||||||||||||||||||||
(in thousands) | 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) | CBHL | Corporate(2) | Eliminations | Consolidated | ||||||||||||||||||||
Interest income | $ | 20,382 | $ | 102 | $ | 17,103 | $ | 812 | $ | (59 | ) | $ | 38,340 | |||||||||||
Interest expense | 1,449 | 40 | — | 233 | (59 | ) | 1,663 | |||||||||||||||||
Net interest income | 18,933 | 62 | 17,103 | 579 | — | 36,677 | ||||||||||||||||||
Provision (release of provision) for loan losses | (980 | ) | — | 2,240 | — | — | 1,260 | |||||||||||||||||
Net interest income after provision | 19,913 | 62 | 14,863 | 579 | — | 35,417 | ||||||||||||||||||
Noninterest income | 468 | 1,115 | 5,524 | 1 | — | 7,108 | ||||||||||||||||||
Noninterest expense(1) | 13,798 | 2,017 | 12,101 | 178 | — | 28,094 | ||||||||||||||||||
Net income (loss) before taxes | $ | 6,583 | $ | (840 | ) | $ | 8,286 | $ | 402 | $ | — | $ | 14,431 | |||||||||||
Total assets | $ | 1,823,049 | $ | 7,664 | $ | 128,842 | $ | 234,731 | $ | (184,928 | ) | $ | 2,009,358 |
________________________
(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 |
||||||||||||||||||||||||
(in thousands) | CBHL | 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 | ||||||||||||||||||
Release of 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) | 46,701 | 4,564 | 32,146 | 449 | — | 83,860 | ||||||||||||||||||
Net income (loss) before taxes | $ | 10,848 | $ | (626 | ) | $ | 22,801 | $ | 1,986 | $ | — | $ | 35,009 | |||||||||||
Total assets | $ | 2,102,749 | $ | 5,280 | $ | 116,318 | $ | 264,950 | $ | (216,813 | ) | $ | 2,272,484 | |||||||||||
For the nine months ended |
||||||||||||||||||||||||
(in thousands) | CBHL | Corporate(2) | Eliminations | Consolidated | ||||||||||||||||||||
Interest income | $ | 57,794 | $ | 347 | $ | 48,823 | $ | 2,457 | $ | (123 | ) | $ | 109,298 | |||||||||||
Interest expense | 3,255 | 185 | — | 573 | (123 | ) | 3,890 | |||||||||||||||||
Net interest income | 54,539 | 162 | 48,823 | 1,884 | — | 105,408 | ||||||||||||||||||
Provision (release of provision) for loan losses | (980 | ) | — | 5,227 | — | — | 4,247 | |||||||||||||||||
Net interest income after provision | 55,519 | 162 | 43,596 | 1,884 | — | 101,161 | ||||||||||||||||||
Noninterest income | 1,571 | 4,580 | 17,658 | 2 | — | 23,811 | ||||||||||||||||||
Noninterest expense(1) | 38,741 | 6,364 | 36,923 | 351 | — | 82,379 | ||||||||||||||||||
Net income (loss) before taxes | $ | 18,349 | $ | (1,622 | ) | $ | 24,331 | $ | 1,535 | $ | — | $ | 42,593 | |||||||||||
Total assets | $ | 1,823,049 | $ | 7,664 | $ | 128,842 | $ | 234,731 | $ | (184,928 | ) | $ | 2,009,358 |
(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 |
2022 |
2022 |
|||||||||||||||||
Earnings: | ||||||||||||||||||||
Net income | $ | 9,788 | $ | 7,318 | $ | 9,735 | $ | 8,991 | $ | 11,095 | ||||||||||
Earnings per common share, diluted | 0.70 | 0.52 | 0.68 | 0.62 | 0.77 | |||||||||||||||
Net interest margin | 6.71 | % | 6.63 | % | 6.65 | % | 6.64 | % | 7.24 | % | ||||||||||
Net interest margin, excluding credit cards & SBA-PPP loans(1) | 4.05 | % | 4.06 | % | 3.81 | % | 3.91 | % | 4.16 | % | ||||||||||
Return on average assets(2) | 1.75 | % | 1.34 | % | 1.84 | % | 1.67 | % | 2.15 | % | ||||||||||
Return on average assets, excluding impact of SBA-PPP loans(1)(2) | 1.75 | % | 1.34 | % | 1.84 | % | 1.67 | % | 2.10 | % | ||||||||||
Return on average equity(2) | 16.00 | % | 12.30 | % | 16.98 | % | 16.18 | % | 20.32 | % | ||||||||||
Efficiency ratio | 65.02 | % | 70.41 | % | 64.73 | % | 65.59 | % | 64.16 | % | ||||||||||
Balance Sheet: | ||||||||||||||||||||
Total portfolio loans receivable, net deferred fees | $ | 1,861,929 | $ | 1,837,041 | $ | 1,786,109 | $ | 1,728,592 | $ | 1,648,001 | ||||||||||
Total deposits | 1,967,988 | 1,934,361 | 1,944,374 | 1,758,072 | 1,737,591 | |||||||||||||||
Total assets | 2,272,484 | 2,227,866 | 2,245,286 | 2,123,655 | 2,009,358 | |||||||||||||||
Total stockholders' equity | 242,878 | 237,435 | 234,517 | 224,015 | 214,005 | |||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||
Nonperforming assets to total assets | 0.67 | % | 0.71 | % | 0.73 | % | 0.46 | % | 0.43 | % | ||||||||||
Nonperforming assets to total assets, excluding the SBA-PPP loans(1) | 0.67 | % | 0.71 | % | 0.73 | % | 0.46 | % | 0.43 | % | ||||||||||
Nonperforming loans to total loans | 0.82 | % | 0.85 | % | 0.91 | % | 0.56 | % | 0.52 | % | ||||||||||
Nonperforming loans to portfolio loans(1) | 0.82 | % | 0.86 | % | 0.91 | % | 0.56 | % | 0.52 | % | ||||||||||
Net charge-offs to average portfolio loans(1)(2) | 0.38 | % | 0.35 | % | 0.61 | % | 0.49 | % | 0.39 | % | ||||||||||
Allowance for credit losses to total loans | 1.52 | % | 1.50 | % | 1.47 | % | 1.52 | % | 1.58 | % | ||||||||||
Allowance for credit losses to portfolio loans(1) | 1.52 | % | 1.50 | % | 1.47 | % | 1.53 | % | 1.58 | % | ||||||||||
Allowance for credit losses to non-performing loans | 185.61 | % | 175.03 | % | 160.91 | % | 270.46 | % | 303.76 | % | ||||||||||
Bank Capital Ratios: | ||||||||||||||||||||
Total risk based capital ratio | 14.51 | % | 14.08 | % | 14.09 | % | 14.21 | % | 14.65 | % | ||||||||||
Tier 1 risk based capital ratio | 13.25 | % | 12.82 | % | 12.84 | % | 12.95 | % | 13.39 | % | ||||||||||
Leverage ratio | 10.04 | % | 9.77 | % | 9.78 | % | 9.47 | % | 9.60 | % | ||||||||||
Common equity Tier 1 capital ratio | 13.25 | % | 12.82 | % | 12.84 | % | 12.95 | % | 13.39 | % | ||||||||||
Tangible common equity | 9.08 | % | 8.93 | % | 8.79 | % | 8.85 | % | 9.00 | % | ||||||||||
Holding Company Capital Ratios: | ||||||||||||||||||||
Total risk based capital ratio | 17.61 | % | 16.81 | % | 16.75 | % | 16.33 | % | 17.41 | % | ||||||||||
Tier 1 risk based capital ratio | 15.71 | % | 14.96 | % | 14.90 | % | 15.13 | % | 15.49 | % | ||||||||||
Leverage ratio | 11.62 | % | 11.50 | % | 11.47 | % | 11.24 | % | 11.31 | % | ||||||||||
Common equity Tier 1 capital ratio | 15.71 | % | 14.96 | % | 14.90 | % | 15.00 | % | 15.36 | % | ||||||||||
Tangible common equity | 10.69 | % | 10.66 | % | 10.44 | % | 10.55 | % | 10.65 | % | ||||||||||
Composition of Loans: | ||||||||||||||||||||
SBA-PPP loans, net | $ | 750 | $ | 1,090 | $ | 2,037 | $ | 2,163 | $ | 2,662 | ||||||||||
Commercial real estate | $ | 670,594 | $ | 674,141 | $ | 660,218 | $ | 664,551 | $ | 626,030 | ||||||||||
Residential real estate | 558,147 | 555,133 | 545,899 | 484,735 | 466,849 | |||||||||||||||
Construction real estate | 280,905 | 258,400 | 251,494 | 238,099 | 235,045 | |||||||||||||||
Commercial and industrial | 236,782 | 233,598 | 221,258 | 220,221 | 192,207 | |||||||||||||||
Credit card, net of reserve(3) | 122,533 | 122,925 | 112,860 | 128,434 | 136,658 | |||||||||||||||
Other consumer loans | 948 | 1,187 | 1,578 | 1,179 | 1,055 | |||||||||||||||
Portfolio loans receivable | $ | 1,869,909 | $ | 1,845,384 | $ | 1,793,307 | $ | 1,737,219 | $ | 1,657,844 | ||||||||||
Deferred origination fees, net | (7,980 | ) | (8,343 | ) | (7,198 | ) | (8,627 | ) | (9,843 | ) | ||||||||||
Portfolio loans receivable, net | $ | 1,861,929 | $ | 1,837,041 | $ | 1,786,109 | $ | 1,728,592 | $ | 1,648,001 | ||||||||||
Composition of Deposits: | ||||||||||||||||||||
Noninterest-bearing | $ | 680,803 | $ | 693,129 | $ | 705,801 | $ | 674,313 | $ | 806,033 | ||||||||||
Interest-bearing demand | 229,035 | 243,095 | 219,685 | 207,836 | 252,135 | |||||||||||||||
Savings | 5,686 | 5,816 | 5,835 | 7,530 | 8,861 | |||||||||||||||
Money markets | 668,774 | 631,148 | 632,087 | 574,978 | 518,184 | |||||||||||||||
Brokered time deposits | 128,665 | 128,665 | 181,820 | 131,819 | — | |||||||||||||||
Other time deposits | 255,025 | 232,508 | 199,146 | 161,596 | 152,378 | |||||||||||||||
Total deposits | $ | 1,967,988 | $ | 1,934,361 | $ | 1,944,374 | $ | 1,758,072 | $ | 1,737,591 | ||||||||||
Capital Bank Home Loan Metrics: | ||||||||||||||||||||
Origination of loans held for sale | $ | 50,023 | $ | 61,480 | $ | 44,448 | $ | 43,956 | $ | 60,516 | ||||||||||
Mortgage loans sold | 39,364 | 49,231 | 40,483 | 43,415 | 65,349 | |||||||||||||||
Gain on sale of loans | 1,011 | 1,262 | 1,223 | 912 | 1,340 | |||||||||||||||
Purchase volume as a % of originations | 92.29 | % | 93.12 | % | 90.72 | % | 88.94 | % | 81.85 | % | ||||||||||
Gain on sale as a % of loans sold(4) | 2.57 | % | 2.56 | % | 3.02 | % | 2.10 | % | 2.05 | % | ||||||||||
Mortgage commissions | $ | 528 | $ | 621 | $ | 378 | $ | 451 | $ | 587 | ||||||||||
Open customer accounts | 529,205 | 540,058 | 527,231 | 533,855 | 576,844 | |||||||||||||||
Secured credit card loans, gross | $ | 98,138 | $ | 100,218 | $ | 89,078 | $ | 104,157 | $ | 111,842 | ||||||||||
Unsecured credit card loans, gross | 27,430 | 25,254 | 25,782 | 26,795 | 27,335 | |||||||||||||||
Noninterest secured credit card deposits | 181,185 | 186,566 | 184,809 | 187,412 | 201,277 |
_______________
(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
The Company has presented the following non-GAAP (
Return on Average Assets, as Adjusted | Quarters Ended | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
Net Income | $ | 9,788 | $ | 7,318 | $ | 9,735 | $ | 8,991 | $ | 11,095 | |||||||||
Less: SBA-PPP loan income | 11 | 7 | 8 | 28 | 263 | ||||||||||||||
Net Income, as Adjusted | $ | 9,777 | $ | 7,311 | $ | 9,727 | $ | 8,963 | $ | 10,832 | |||||||||
Average Total Assets | 2,221,117 | 2,184,351 | 2,144,249 | 2,136,156 | 2,049,078 | ||||||||||||||
Less: Average SBA-PPP Loans | 906 | 1,808 | 2,099 | 2,435 | 5,906 | ||||||||||||||
Average Total Assets, as Adjusted | $ | 2,220,211 | $ | 2,182,543 | $ | 2,142,150 | $ | 2,133,721 | $ | 2,043,172 | |||||||||
Return on Average Assets, as Adjusted | 1.75 | % | 1.34 | % | 1.84 | % | 1.67 | % | 2.10 | % | |||||||||
Return on Average Assets, as Adjusted | Nine Months Ended | ||||||
(in thousands) | |||||||
Net Income | $ | 26,841 | $ | 32,814 | |||
Less: SBA-PPP loan income | 26 | 3,449 | |||||
Net Income, as Adjusted | $ | 26,815 | $ | 29,365 | |||
Average Total Assets | 2,183,521 | 2,058,136 | |||||
Less: Average SBA-PPP Loans | 1,600 | 39,063 | |||||
Average Total Assets, as Adjusted | $ | 2,181,921 | $ | 2,019,073 | |||
Return on Average Assets, as Adjusted | 1.64 | % | 1.94 | % | |||
Net Interest Margin, as Adjusted | Quarters Ended | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
Net Interest Income | $ | 36,810 | $ | 35,340 | $ | 34,487 | $ | 35,199 | $ | 36,677 | |||||||||
Less Credit card loan income | 15,792 | 14,818 | 15,809 | 15,717 | 16,768 | ||||||||||||||
Less SBA-PPP loan income | 11 | 7 | 8 | 28 | 263 | ||||||||||||||
Net Interest Income, as Adjusted | $ | 21,007 | $ | 20,515 | $ | 18,670 | $ | 19,454 | $ | 19,646 | |||||||||
Average Interest Earning Assets | 2,176,477 | 2,136,936 | 2,103,984 | 2,101,617 | 2,010,070 | ||||||||||||||
Less Average credit card loans | 116,814 | 110,574 | 115,850 | 124,120 | 132,246 | ||||||||||||||
Less Average SBA-PPP loans | 906 | 1,808 | 2,099 | 2,435 | 5,906 | ||||||||||||||
Total Average Interest Earning Assets, as Adjusted | $ | 2,058,757 | $ | 2,024,554 | $ | 1,986,035 | $ | 1,975,062 | $ | 1,871,918 | |||||||||
Net Interest Margin, as Adjusted | 4.05 | % | 4.06 | % | 3.81 | % | 3.91 | % | 4.16 | % | |||||||||
Net Interest Margin, as Adjusted | Nine Months Ended | ||||||
(in thousands) | |||||||
Net Interest Income | $ | 106,637 | $ | 105,408 | |||
Less Credit card loan income | 46,419 | 47,631 | |||||
Less SBA-PPP loan income | 26 | 3,449 | |||||
Net Interest Income, as Adjusted | $ | 60,192 | $ | 54,328 | |||
Average Interest Earning Assets | 2,139,398 | 2,010,200 | |||||
Less Average credit card loans | 114,416 | 127,266 | |||||
Less Average SBA-PPP loans | 1,600 | 39,063 | |||||
Total Average Interest Earning Assets, as Adjusted | $ | 2,023,382 | $ | 1,843,871 | |||
Net Interest Margin, as Adjusted | 3.98 | % | 3.94 | % | |||
Pre-tax, Pre-Provision Net Revenue ("PPNR") | Quarters Ended | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
Net income | $ | 9,788 | $ | 7,318 | $ | 9,735 | $ | 8,991 | $ | 11,095 | |||||||||
Add: Income Tax Expense | 2,998 | 2,255 | 2,915 | 2,651 | 3,336 | ||||||||||||||
Add: Provision for Credit Losses | 2,280 | 2,862 | 1,660 | 2,384 | 1,260 | ||||||||||||||
Add: Provision (release of provision) for Credit Losses on Unfunded Commitments | 24 | — | (19 | ) | — | — | |||||||||||||
Pre-tax, Pre-Provision Net Revenue ("PPNR") | $ | 15,090 | $ | 12,435 | $ | 14,291 | $ | 14,026 | $ | 15,691 | |||||||||
Pre-tax, Pre-Provision Net Revenue ("PPNR") | Nine Months Ended | ||||||
(in thousands) | |||||||
Net income | $ | 26,841 | $ | 32,814 | |||
Add: Income Tax Expense | 8,168 | 9,779 | |||||
Add: Provision for Credit Losses | 6,802 | 4,247 | |||||
Add: Provision for Credit Losses on Unfunded Commitments | 5 | — | |||||
Pre-tax, Pre-Provision Net Revenue ("PPNR") | $ | 41,816 | $ | 46,840 | |||
Allowance for Credit Losses to Total Portfolio Loans | Quarters Ended | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
Allowance for Credit Losses | $ | 28,279 | $ | 27,495 | $ | 26,216 | $ | 26,385 | $ | 26,091 | |||||||||
Total Loans | 1,862,679 | 1,838,131 | 1,788,146 | 1,730,755 | 1,650,663 | ||||||||||||||
Less: SBA-PPP loans | 750 | 1,090 | 2,037 | 2,163 | 2,662 | ||||||||||||||
Total Portfolio Loans | $ | 1,861,929 | $ | 1,837,041 | $ | 1,786,109 | $ | 1,728,592 | $ | 1,648,001 | |||||||||
Allowance for Credit Losses to Total Portfolio Loans | 1.52 | % | 1.50 | % | 1.47 | % | 1.53 | % | 1.58 | % | |||||||||
Nonperforming Assets to Total Assets, net SBA-PPP Loans | Quarters Ended | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
Total Nonperforming Assets | $ | 15,236 | $ | 15,709 | $ | 16,293 | $ | 9,756 | $ | 8,589 | |||||||||
Total Assets | 2,272,484 | 2,227,866 | 2,245,286 | 2,123,655 | 2,009,358 | ||||||||||||||
Less: SBA-PPP loans | 750 | 1,090 | 2,037 | 2,163 | 2,662 | ||||||||||||||
Total Assets, net SBA-PPP Loans | $ | 2,271,734 | $ | 2,226,776 | $ | 2,243,249 | $ | 2,121,492 | $ | 2,006,696 | |||||||||
Nonperforming Assets to Total Assets, net SBA-PPP Loans | 0.67 | % | 0.71 | % | 0.73 | % | 0.46 | % | 0.43 | % | |||||||||
Nonperforming Loans to Total Portfolio Loans | Quarters Ended | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
Total Nonperforming Loans | $ | 15,236 | $ | 15,709 | $ | 16,293 | $ | 9,756 | $ | 8,589 | |||||||||
Total Loans | 1,862,679 | 1,838,131 | 1,788,146 | 1,730,755 | 1,650,663 | ||||||||||||||
Less: SBA-PPP loans | 750 | 1,090 | 2,037 | 2,163 | 2,662 | ||||||||||||||
Total Portfolio Loans | $ | 1,861,929 | $ | 1,837,041 | $ | 1,786,109 | $ | 1,728,592 | $ | 1,648,001 | |||||||||
Nonperforming Loans to Total Portfolio Loans | 0.82 | % | 0.86 | % | 0.91 | % | 0.56 | % | 0.52 | % | |||||||||
Net Charge-offs to Average Portfolio Loans | Quarters Ended | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
Total Net Charge-offs | $ | 1,780 | $ | 1,583 | $ | 2,633 | $ | 2,090 | $ | 1,588 | |||||||||
Total Average Loans | 1,847,772 | 1,802,608 | 1,752,638 | 1,677,869 | 1,607,452 | ||||||||||||||
Less: Average SBA-PPP loans | 906 | 1,808 | 2,099 | 2,435 | 5,906 | ||||||||||||||
Total Average Portfolio Loans | $ | 1,846,866 | $ | 1,800,800 | $ | 1,750,539 | $ | 1,675,434 | $ | 1,601,546 | |||||||||
Net Charge-offs to Average Portfolio Loans | 0.38 | % | 0.35 | % | 0.61 | % | 0.49 | % | 0.39 | % | |||||||||
Net Charge-offs to Average Portfolio Loans | Nine Months Ended | ||||||
(in thousands) | |||||||
Total Net Charge-offs | $ | 5,996 | $ | 1,749 | |||
Total Average Loans | 1,801,355 | 1,586,449 | |||||
Less: Average SBA-PPP loans | 1,600 | 39,063 | |||||
Total Average Portfolio Loans | $ | 1,799,755 | $ | 1,547,386 | |||
Net Charge-offs to Average Portfolio Loans | 0.45 | % | 0.23 | % | |||
Tangible Book Value per Share | Quarters Ended | ||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||
Total Stockholders' Equity | $ | 242,878 | $ | 237,435 | $ | 234,517 | $ | 224,015 | $ | 214,005 | |||||||||
Less: Preferred equity | — | — | — | — | — | ||||||||||||||
Less: Intangible assets | — | — | — | — | — | ||||||||||||||
Tangible Common Equity | $ | 242,878 | $ | 237,435 | $ | 234,517 | $ | 224,015 | $ | 214,005 | |||||||||
Period End Shares Outstanding | 13,896,062 | 13,981,414 | 14,082,657 | 14,138,829 | 14,038,599 | ||||||||||||||
Tangible Book Value per Share | $ | 17.48 | $ | 16.98 | $ | 16.65 | $ | 15.84 | $ | 15.24 | |||||||||
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 wars 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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WEB SITE: www.CapitalBankMD.com
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Source: Capital Bancorp, Inc.